Thornburg Strategic Municipal Income Fund
The Thornburg Strategic Municipal Income Fund, (“the Fund”) declared the following long-term capital
gain dividends in 2011:
| Share Class | Record Date |
Payable Date |
Short-term(1) (amount per share) |
Long-term (amount per share) |
| Class A | 11/17/11 |
11/18/11 |
n/a |
0.01198 |
| Class C | 11/17/11 |
11/18/11 |
n/a |
0.01198 |
| Class I | 11/17/11 |
11/18/11 |
n/a |
0.01198 |
(1) Short-term gains are treated as ordinary income for tax purposes.
State-by-State Breakdown
Below is a table showing the percentage breakdown by state or U.S. possession of the income earned by the Fund for those states or possessions in which the Fund had investments at any time during 2011.
Reporting Requirements for your 2011 Federal Return: Individuals
Your dividends from the Fund must be reported on your federal income tax 2011 return. For the 2011 calendar year, 3.00% of the dividends paid by the Fund are taxable ordinary income (box 1a of Form 1099-DIV) and 97.00% of the dividends paid by the Fund are exempt from regular federal income tax (box 8 of Form 1099-INT). A portion of the exempt income reported in box 8 of Form 1099-INT, as shown below, and reported in box 9 of Form 1099-INT, may be treated as a preference item for the purpose of alternative minimum tax applicable to certain individuals and to corporations. Shareholders are advised to consult their own tax advisors as to the extent and effect of such treatment.
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Avg 11 | |
| Municipal Income | 98.21% | 98.26% | 98.26% | 98.31% | 98.28% | 98.40% | 98.35% | 98.36% | 98.33% | 98.50% | 96.71% | 96.74% | 98.00% |
| Municipal AMT Preference Income | 1.79% | 1.74% | 1.74% | 1.69% | 1.72% | 1.60% | 1.65% | 1.64% | 1.67% | 1.50% | 3.29% | 3.26% | 2.00% |
| Total Municipal Income | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Remember: State and local taxes vary, and we suggest that you contact your tax advisor for information on those taxes.
Special Requirements for Corporations
Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, will be included in the corporation’s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation.
The following listing represents the percentage breakdown by state or U.S. possession of the income paid by the Fund for those states or possessions in which the Fund had investments at any time during 2011. State and local taxes vary, and we suggest that you contact your tax advisor with respect to these taxes. Please retain this notice for your records.
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Avg 11 | |
| Alabama | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Alaska | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Arizona | 1.95% | 1.90% | 1.84% | 1.80% | 1.82% | 1.70% | 1.67% | 1.78% | 2.43% | 2.16% | 1.97% | 1.95% | 1.92% |
| Arkansas | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| California | 16.84% | 17.26% | 18.69% | 18.53% | 18.92% | 19.39% | 21.35% | 21.21% | 21.99% | 23.99% | 23.69% | 24.42% | 21.49% |
| Colorado | 8.27% | 8.30% | 8.37% | 8.16% | 8.32% | 7.73% | 7.96% | 7.91% | 8.09% | 7.21% | 6.54% | 5.90% | 7.54% |
| Connecticut | 1.26% | 1.24% | 1.22% | 1.19% | 1.21% | 1.12% | 1.16% | 1.15% | 1.17% | 1.04% | 0.95% | 0.94% | 1.10% |
| Delaware | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| District of Columbia | 0.70% | 0.62% | 0.68% | 0.66% | 0.69% | 0.62% | 0.66% | 0.65% | 0.65% | 0.61% | 0.54% | 0.56% | 0.63% |
| Florida | 4.94% | 4.80% | 4.74% | 5.36% | 4.48% | 8.06% | 5.66% | 5.62% | 2.11% | 4.23% | 3.28% | 3.03% | 4.65% |
| Georgia | 1.59% | 1.57% | 1.54% | 1.51% | 1.53% | 1.42% | 1.46% | 1.46% | 1.49% | 1.32% | 1.21% | 1.19% | 1.40% |
| Guam | 2.80% | 2.77% | 2.72% | 2.65% | 2.68% | 2.51% | 2.58% | 2.56% | 2.61% | 2.33% | 2.12% | 2.10% | 2.46% |
| Hawaii | 0.36% | 0.36% | 0.36% | 0.35% | 0.35% | 0.33% | 0.34% | 0.33% | 0.34% | 0.30% | 0.28% | 0.27% | 0.32% |
| Idaho | 0.05% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Illinois | 9.38% | 9.70% | 8.70% | 8.80% | 8.90% | 8.31% | 8.28% | 8.40% | 8.91% | 8.09% | 7.72% | 7.61% | 8.34% |
| Indiana | 1.46% | 1.48% | 1.42% | 1.40% | 1.34% | 1.21% | 1.25% | 1.24% | 1.27% | 1.55% | 3.37% | 3.88% | 1.83% |
| Iowa | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Kansas | 1.24% | 1.21% | 1.20% | 1.17% | 1.57% | 1.71% | 1.76% | 1.75% | 1.78% | 1.59% | 1.45% | 1.37% | 1.57% |
| Kentucky | 2.85% | 2.61% | 2.76% | 2.67% | 2.78% | 2.53% | 2.66% | 2.65% | 2.64% | 2.46% | 2.24% | 2.39% | 2.56% |
| Louisiana | 1.35% | 1.13% | 1.16% | 0.97% | 0.68% | 0.64% | 0.65% | 0.65% | 0.66% | 0.59% | 0.54% | 0.53% | 0.66% |
| Maine | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Maryland | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Massachusetts | 0.60% | 0.59% | 0.58% | 0.57% | 0.58% | 0.54% | 0.53% | 0.53% | 0.55% | 0.48% | 0.44% | 0.43% | 0.52% |
| Michigan | 9.39% | 9.08% | 8.93% | 9.26% | 8.60% | 9.74% | 10.18% | 10.10% | 10.31% | 8.96% | 10.02% | 9.99% | 9.68% |
| Minnesota | 1.10% | 1.08% | 1.02% | 0.60% | 0.61% | 0.57% | 0.59% | 0.58% | 0.59% | 0.53% | 0.48% | 0.48% | 0.56% |
| Mississippi | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Missouri | 0.05% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.62% | 0.71% | 0.80% | 0.70% | 0.61% | 0.58% | 0.45% |
| Montana | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Nebraska | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Nevada | 0.78% | 0.77% | 0.75% | 0.74% | 0.74% | 0.69% | 0.71% | 0.71% | 0.77% | 0.94% | 0.86% | 0.85% | 0.78% |
| New Hampshire | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| New Jersey | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| New Mexico | 1.99% | 1.96% | 1.93% | 1.88% | 1.91% | 1.78% | 1.83% | 1.70% | 1.56% | 1.39% | 1.27% | 1.25% | 1.62% |
| New York | 0.00% | 0.03% | 0.08% | 0.05% | 0.02% | 0.04% | 0.01% | 0.04% | 0.06% | 0.07% | 0.00% | 0.01% | 0.03% |
| N. Carolina | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| N. Dakota | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Ohio | 3.68% | 4.62% | 4.53% | 4.44% | 4.54% | 3.80% | 3.59% | 3.57% | 3.65% | 3.49% | 3.89% | 3.81% | 3.86% |
| Oklahoma | 0.00% | 0.00% | 0.00% | 0.01% | 0.00% | 0.00% | 0.01% | 0.07% | 0.05% | 0.00% | 0.00% | 0.00% | 0.02% |
| Oregon | 1.18% | 1.16% | 1.15% | 1.12% | 1.14% | 1.06% | 1.09% | 1.09% | 1.10% | 0.99% | 0.90% | 0.89% | 1.04% |
| Pennsylvania | 4.82% | 4.66% | 4.68% | 4.53% | 4.62% | 4.29% | 4.45% | 4.40% | 4.44% | 4.01% | 5.54% | 6.36% | 4.74% |
| Puerto Rico | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Rhode Island | 0.71% | 0.71% | 0.69% | 0.68% | 0.68% | 0.64% | 0.66% | 0.65% | 0.67% | 0.59% | 0.54% | 0.53% | 0.63% |
| S. Carolina | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| S. Dakota | 0.86% | 0.85% | 0.83% | 0.81% | 0.82% | 0.77% | 0.79% | 0.79% | 0.80% | 0.71% | 0.65% | 0.64% | 0.75% |
| Tennessee | 0.74% | 0.72% | 0.72% | 0.70% | 0.71% | 0.66% | 0.68% | 0.68% | 0.69% | 0.62% | 0.56% | 0.56% | 0.65% |
| Texas | 13.00% | 12.82% | 12.82% | 13.64% | 13.95% | 12.72% | 11.24% | 11.47% | 11.75% | 13.02% | 12.84% | 12.66% | 12.58% |
| US Virgin Islands | 0.88% | 0.87% | 0.86% | 0.84% | 0.85% | 0.79% | 0.81% | 0.81% | 0.83% | 0.74% | 0.67% | 0.66% | 0.78% |
| Utah | 1.00% | 0.99% | 0.97% | 0.95% | 0.96% | 0.90% | 0.92% | 0.92% | 0.93% | 0.83% | 0.76% | 0.75% | 0.88% |
| Vermont | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Virginia | 2.99% | 2.96% | 2.90% | 2.83% | 2.86% | 2.67% | 2.75% | 2.73% | 3.20% | 3.47% | 3.17% | 2.52% | 2.91% |
| Washington | 1.19% | 1.18% | 1.16% | 1.13% | 1.14% | 1.06% | 1.10% | 1.09% | 1.11% | 0.99% | 0.90% | 0.89% | 1.05% |
| West Virginia | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Wisconsin | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Wyoming | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Non State Tax Exempt | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Total | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Tax rules are complex. Please consult your tax advisor.
Investments in the Funds 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 a bond 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 the Funds 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.
