Thornburg Strategic Income Fund
The Thornburg Strategic Income Fund (“the Fund”) declared the following short-term and long-term capital gain dividends in 2009:
| Share Class | Record Date |
Payable Date |
Short-term(1) |
Long-term |
| Class A | 11/18/09 |
11/19/09 |
0.04624 |
0.00432 |
| Class C | 11/18/09 |
11/19/09 |
0.04624 |
0.00432 |
| Class I | 11/18/09 |
11/19/09 |
0.04624 |
0.00432 |
(1) Short-term gains are treated as ordinary income for tax purposes.
For the 2009 calendar year, 5.95% of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) qualify as qualified dividend income (“QDI”) (box 1b of Form 1099-DIV) for the reduced tax rate under the Jobs and Growth Relief Reconciliation Act of 2003.
2.23% of the ordinary income dividends paid by the Fund for 2009 qualified for the corporate dividends received deduction.
Listed below is a month-by-month percentage breakdown of sources of interest income earned by the Fund in 2009 on U.S. government obligations. Some states and/or localities do not require you to pay state or local income tax on income derived from certain federal agency bonds.
DIRECT U.S. OBLIGATIONS
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Avg 09 | |
| U.S. Treasury | 1.17% | 0.88% | 0.75% | 0.68% | 0.58% | 0.48% | 0.49% | 0.45% | 0.40% | 0.38% | 0.38% | 0.32% | 0.58% |
| Sub-total | 1.17% | 0.88% | 0.75% | 0.68% | 0.58% | 0.48% | 0.49% | 0.45% | 0.40% | 0.38% | 0.38% | 0.32% | 0.58% |
INDIRECT U.S. OBLIGATIONS
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Avg 09 | |
| Federal Home Loan Mortgage Corporation |
0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.04% | 0.10% | 0.04% | 0.02% |
| Federal National Mortgage Association |
0.03% | 0.02% | 0.02% | 0.02% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| Other Government Agencies |
0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.37% | 0.63% | 0.57% | 0.53% | 0.54% | 0.44% | 0.26% |
| Sub-total | 0.03% | 0.02% | 0.02% | 0.02% | 0.01% | 0.01% | 0.38% | 0.64% | 0.58% | 0.58% | 0.65% | 0.49% | 0.29% |
| Total | 1.20% | 0.90% | 0.77% | 0.70% | 0.59% | 0.49% | 0.87% | 1.09% | 0.98% | 0.96% | 1.03% | 0.81% | 0.87% |
Tax Rules are complex. Please consult your tax advisor.
Investments in the Fund carry risks, including possible loss of principal. Bond funds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds. The principal value of bonds will fluctuate relative to changes in interest rates, decreasing when interest rates rise. Unlike bonds, bond funds have ongoing fees and expenses. Funds invested in mortgage backed securities may bear additional risk. Investments in lower rated and unrated bonds may be more sensitive to default, downgrades, and market volatility; these investments may also be less liquid than higher rated bonds. Investments in structured finance arrangements and other types of derivatives are subject to the risks associated with the securities or other assets underlying the pool of securities including illiquidity and difficulty in valuation. Investments in equity securities are subject to additional risks, such as greater market fluctuations. Special risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity and volatility. Investments in the Fund are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity.
Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus containing this and other information, contact your financial advisor or visit our literature library. Read it carefully before investing.
