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Welcome to Thornburg

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Home » Investments » Closed-End Funds » Thornburg Income Builder Opportunities Trust*

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800.847.0200

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Thornburg Income Builder Opportunities Trust*

Closing NAV
$16.77
As of 20 Mar 2023
Closing Share Price
$14.58
As of 20 Mar 2023
Premium Discount
-13.06%
As of 20 Mar 2023
Distribution Rate
8.57%
As of 20 Mar 2023
Inception Date
27 Jul 2021
As of 20 Mar 2023
Portfolio Managers
Ben Kirby, CFA
Co-Head of Investments and Managing Director
Matt Burdett
Portfolio Manager and Managing Director
Christian Hoffmann, CFA
Portfolio Manager and Managing Director
OverviewFund FactsPerformanceDistributionsPortfolio CharacteristicsPortfolio ManagersLiterature
Overview

Overview

Investment Rationale

The Trust’s investment objective is to provide current income and additional total return. There is no assurance that the Trust will achieve its investment objective. The Trust seeks to provide investors with the following potential benefits:

  • Current income stream and additional total return
  • Active global allocation to navigate increasingly volatile markets
  • Diversified income from global dividends and opportunistic fixed income
  • Regular monthly distributions†

Download Investor Brochure

Investment Approach

The Trust seeks current income and additional total return by investing in a broad range of income-producing securities to include both equity and debt securities of companies located in the U.S. and around the globe. The Trust additionally expects to employ an options strategy to generate current income from options premiums and to improve risk-adjusted returns. There can be no assurance that the Trust will achieve its investment objective, and you could lose some or all of your investment.

Investment Strategy

The Trust will invest at least 80% of its Managed Assets, directly or indirectly, in a broad range of income-producing securities. The Trust will invest in both equity and debt securities of companies located in the United States and around the globe. The Trust may invest in companies of any market capitalization and may invest in both U.S. and non-U.S. countries, including up to 20% of its Managed Assets at the time of investment in equity and debt securities of emerging market companies. The Trust’s global equity allocation is expected to represent 75% of Managed Assets and may vary over time between 50% to 90% of Managed Assets. The Trust’s global debt allocation is expected to represent 25% of Managed Assets and may vary over time between 10% to 50% of Managed Assets.

The Trust’s options strategy is intended to generate current income from options premiums and to improve its risk-adjusted returns. The notional amount of the options strategy will be approximately 10% to 40% of the Trust’s Managed Assets.‡

The Trust does not intend to use leverage and has a 12-year term.§, ll

For term definitions and index descriptions, please access the glossary in the footer.

Related Content

Fixed Income
The Situation Remains Fluid: An Update on the Banking Industry
Income
Thornburg Income Builder Opportunities Trust – 4th Quarter Update
Markets & Economy
Thornburg Investment Income Builder Fund – 4th Quarter Update
Fund Facts

Fund Facts

(As of 31 Dec 2022)
Common Net Assets
$528,263,600
Leverage
0.00%
Total Managed Assets
$528,263,600
Common Shares Outstanding
32,081,883
Average Daily Volume (last 30 days)
154,050
Fees & Expenses

Fees & Expenses

(As of 31 Dec 2022)
Management Fee1
1.25%
Administration Fee
0.09%
Other Expenses2
0.21%
Investor Support and Secondary Market Support Services Fee1,3
0.20%
Total Annual Expenses
1.75%
Expense Waiver4
-0.10%
Total Annual Expenses after Expense Waiver
1.65%

Expenses shown in the table are based on estimated expenses of the Trust, and the net proceeds from the initial public offering of $580,000,000.

1. The management fee and investor support and secondary market support services fee are charged as a percentage of the Trust’s average daily Managed Assets, as opposed to net assets. With leverage, Managed Assets are greater in amount than net assets, because Managed Assets include assets attributable to the Trust’s use of leverage. The Trust does not intend to employ leverage.

2. “Other Expenses” are based on estimated amounts for the current fiscal year.

3. The Trust has retained XA Investments LLC (“XAI”) to provide investor support and secondary market support services in connection with the ongoing operation of the Trust. The Trust pays XAI a service fee, payable monthly in arrears, in an annual amount equal to 0.20% of the Trust’s average daily Managed Assets.

4. Thornburg has entered into an “Expense Limitation and Reimbursement Agreement” with the Trust for a two-year term beginning on the date of commencement of operations of the Trust to limit the amount of Total Annual Expenses, excluding leverage expenses borne by the Trust to an amount not to exceed 1.65% per annum of the Trust’s net assets (the “Expense Cap”). To the extent that expenses for a month exceed the Expense Cap, Thornburg will reimburse the Trust for expenses to the extent necessary to eliminate such excess.

Performance

Performance

Total Returns

(As of 28 Feb 2023)
YTD
1y
Inception
Total Price (%)
7.23
-8.82
-10.38
Total NAV (%)
4.47
-4.50
-3.58
Investment Income Builder Blend (%)
3.48
-7.70
-6.51
YTD
1y
Inception
Total Price (%)
-18.19
-18.19
-15.70
Total NAV (%)
-13.61
-13.61
-6.87
Investment Income Builder Blend (%)
-16.67
-16.67
-9.41

Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than quoted.

The Blended Index is composed of 25% Bloomberg Barclay’s U.S. Aggregate Total Return Value USD and 75% MSCI World Net Total Return USD Index, rebalanced monthly.

Pricing

Pricing

(As of 20 Mar 2023)
Date
Share Price ($)
NAV ($)
Premium/discount (%)
20 Mar 2023
14.58
16.77
-13.06
17 Mar 2023
14.43
16.69
-13.54
16 Mar 2023
14.52
16.75
-13.31
15 Mar 2023
14.33
16.58
-13.57
14 Mar 2023
14.69
16.86
-12.87
13 Mar 2023
14.56
16.72
-12.92
10 Mar 2023
14.69
16.73
-12.19
9 Mar 2023
14.92
16.93
-11.87
8 Mar 2023
15.14
17.08
-11.36
7 Mar 2023
15.15
17.08
-11.30
Distributions

Distributions

(As of 20 Mar 2023)
Distribution Rate on Market
8.57%
Distribution Rate on NAV
7.45%
Fiscal YTD Distributions per Share**
$0.62502
Inception to Date Distributions/Share
$1.97923

** For the fund, the Fiscal year is 10/1 to 9/30.

Distribution Summary

Distribution Summary

(As of 31 Mar 2023)
Payable Date
Record Date
Ex-Date
Declaration Date
Amount ($)
20 Sep 2021
13 Sep 2021
10 Sep 2021
25 Aug 2021
0.10417
20 Oct 2021
11 Oct 2021
8 Oct 2021
1 Oct 2021
0.10417
22 Nov 2021
15 Nov 2021
12 Nov 2021
2 Nov 2021
0.10417
20 Dec 2021
13 Dec 2021
10 Dec 2021
1 Dec 2021
0.10417
20 Jan 2022
31 Dec 2021
30 Dec 2021
28 Dec 2021
0.10417
18 Feb 2022
11 Feb 2022
10 Feb 2022
1 Feb 2022
0.10417
21 Mar 2022
11 Mar 2022
10 Mar 2022
1 Mar 2022
0.10417
20 Apr 2022
11 Apr 2022
8 Apr 2022
1 Apr 2022
0.10417
20 May 2022
12 May 2022
11 May 2022
2 May 2022
0.10417
20 Jun 2022
13 Jun 2022
10 Jun 2022
1 Jun 2022
0.10417
20 Jul 2022
11 Jul 2022
8 Jul 2022
1 Jul 2022
0.10417
19 Aug 2022
11 Aug 2022
10 Aug 2022
1 Aug 2022
0.10417
20 Sep 2022
12 Sep 2022
9 Sep 2022
1 Sep 2022
0.10417
20 Oct 2022
11 Oct 2022
7 Oct 2022
3 Oct 2022
0.10417
21 Nov 2022
14 Nov 2022
10 Nov 2022
1 Nov 2022
0.10417
20 Dec 2022
12 Dec 2022
9 Dec 2022
1 Dec 2022
0.10417
23 Jan 2023
13 Jan 2023
12 Jan 2023
3 Jan 2023
0.10417
21 Feb 2023
13 Feb 2023
10 Feb 2023
1 Feb 2023
0.10417
20 Mar 2023
13 Mar 2023
10 Mar 2023
1 Mar 2023
0.10417
Portfolio Characteristics

Portfolio Characteristics

(As of 28 Feb 2023)
Portfolio
Benchmark
Net Fund Assets
$545.4 M
—
Number of Holdings
206
—
Weighted Average Market Cap
$192.3 B
$324.7 B
Median Market Cap
$84.3 B
$17.0 B
Price to Earnings - Forward 1YR
11.1x
15.9x
Price to Earnings - Trailing 12 Months
10.7x
16.8x
Price to Cash Flow
3.7x
10.1x
Price to Book Value
2.1x
2.8x
Portfolio
Benchmark
Return on Assets - 5 YR
10.2%
9.8%
Return on Equity - 5 YR
26.5%
30.2%
Historical 3YR Sales Growth
15.2%
13.8%
Active Share
86.3%
—
Effective Duration
4.8 Yrs
6.2 Yrs
Average Effective Maturity
6.5 Yrs
8.4 Yrs
Weighted Average Coupon
2.0%
2.7%
Weighted Average Price
$88.69
$89.77
Portfolio Top Holdings

Portfolio Top Holdings

(As of 31 Jan 2023)
Name
Ticker/Symbol
Sector
Weight %
Assicurazioni Generali SpA
G
Financials
2.9
Enel SpA
ENEL
Utilities
2.7
BHP Group Ltd.
BHP
Materials
2.3
Pfizer, Inc.
PFE
Health Care
2.3
TotalEnergies SE
TTE
Energy
2.3
Cisco Systems, Inc.
CSCO
Information Technology
2.0
Taiwan Semiconductor Manufacturing Co. Ltd.
TSM
Information Technology
2.0
Endesa S.A.
ELE
Utilities
2.0
Microsoft Corp.
MSFT
Information Technology
1.8
Mercedes-Benz Group AG
MBG
Consumer Discretionary
1.8
Name
Ticker/Symbol
Sector
Weight %
Vector Group Ltd.
92240MBJ6
Consumer, Non-cyclical
1.0
Newell Brands, Inc.
—
Consumer, Cyclical
0.7
Matthews International Corp.
577128AA9
Industrials
0.6
Comision Federal de Electricidad
QZ7462430
Utilities
0.6
Citgo Holding, Inc.
17302WAB4
Energy
0.5
Spirit AeroSystems, Inc.
85205TAL4
Industrials
0.5
AngloGold Ashanti Holdings plc
—
Basic Materials
0.5
LPL Holdings, Inc.
50212YAC8
Financials
0.5
United Wholesale Mortgage, LLC
91153LAA5
Financials
0.5
Science Applications International Corp.
808625AA5
Technology
0.5
Download Holdings
Options Overlay

Options Overlay

(As of 28 Feb 2023)
Type of Options
Calls
% of Portfolio Overwritten
11.8%
Average Call Strike vs. Spot Price
99.5
Weighted Average Days to Expiration
20
Exposure Breakdown

Exposure Breakdown

(As of 28 Feb 2023)
Sector
Sector Allocation
Fund (%)
Benchmark (%)

Fund

Benchmark

0%
5%
10%
15%
20%
25%
30%
Information Technology
22.0
21.3
Financials
19.2
14.6
Health Care
12.3
13.3
Communication Services
9.0
6.6
Materials
8.1
4.5
Consumer Discretionary
7.6
10.7
Utilities
6.6
2.9
Energy
6.4
5.3
Consumer Staples
5.3
7.5
Industrials
3.5
10.7
Real Estate
0.0
2.6
Sector Allocation
Fund (%)
Information Technology
22.0
Financials
19.2
Health Care
12.3
Communication Services
9.0
Materials
8.1
Consumer Discretionary
7.6
Utilities
6.6
Energy
6.4
Consumer Staples
5.3
Industrials
3.5
Real Estate
0.0
Top 10 Industries
Fund (%)
Benchmark (%)

Fund

Benchmark

0%
5%
10%
15%
20%
Pharmaceuticals, Biotechnology & Life Sciences
12.2
8.7
Banks
9.1
6.4
Semiconductors & Semiconductor Equipment
8.2
4.8
Materials
8.0
4.5
Software & Services
8.0
10.1
Insurance
7.5
3.4
Utilities
6.6
2.9
Media & Entertainment
6.5
4.9
Energy
6.3
5.3
Technology Hardware & Equipment
5.7
6.4
Top 10 Industries
Fund (%)
Pharmaceuticals, Biotechnology & Life Sciences
12.2
Banks
9.1
Semiconductors & Semiconductor Equipment
8.2
Materials
8.0
Software & Services
8.0
Insurance
7.5
Utilities
6.6
Media & Entertainment
6.5
Energy
6.3
Technology Hardware & Equipment
5.7
Top 10 Countries
Fund (%)
Benchmark (%)
Region

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
United States
49.8
73.9
North America
Netherlands
5.6
1.0
Europe ex UK
France
5.4
2.8
Europe ex UK
Italy
5.2
0.5
Europe ex UK
Japan
4.4
4.8
Japan
United Kingdom
3.9
3.8
UK
Germany
3.9
1.9
Europe ex UK
Switzerland
2.8
2.1
Europe ex UK
Australia
2.6
1.7
Asia Pacific ex Japan
Canada
2.5
2.9
North America
Top 10 Countries
Fund (%)
United States
49.8
Netherlands
5.6
France
5.4
Italy
5.2
Japan
4.4
United Kingdom
3.9
Germany
3.9
Switzerland
2.8
Australia
2.6
Canada
2.5
Composition
Fund (%)
Benchmark (%)

Fund

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
Equity
65.0
75.0
Fixed Income
32.9
25.0
Cash & Cash Equivalents
2.2
—
Derivatives
-0.1
—
Composition
Fund (%)
Equity
65.0
Fixed Income
32.9
Cash & Cash Equivalents
2.2
Derivatives
-0.1
Capitalization
Fund (%)
Benchmark (%)

Fund

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Large Cap (> $12 B)
94.5
93.6
Mid Cap ($2.5 to $12 B)
4.9
6.4
Small Cap (< $2.5 B)
0.7
0.0
Capitalization
Fund (%)
Large Cap (> $12 B)
94.5
Mid Cap ($2.5 to $12 B)
4.9
Small Cap (< $2.5 B)
0.7
Credit Quality
Fund (%)
Benchmark (%)

Fund

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
U.S. Government
0.5
70.3
AAA
3.4
3.6
AA
1.3
3.0
A
8.4
11.4
BBB
20.1
11.8
BB
34.2
—
B
19.3
—
CCC
0.9
—
Not Rated
12.0
—
Credit Quality
Fund (%)
U.S. Government
0.5
AAA
3.4
AA
1.3
A
8.4
BBB
20.1
BB
34.2
B
19.3
CCC
0.9
Not Rated
12.0
Maturity
Fund (%)
Benchmark (%)

Fund

Benchmark

0%
5%
10%
15%
20%
25%
30%
Year 1
9.6
1.2
Year 2
8.5
11.7
Year 3
15.8
10.2
Year 4
1.7
7.5
Year 5
8.0
9.1
Year 6
14.5
7.7
Year 7
6.9
7.9
Year 8
9.8
9.7
Year 9
9.0
7.2
Year 10+
16.1
27.8
Maturity
Fund (%)
Year 1
9.6
Year 2
8.5
Year 3
15.8
Year 4
1.7
Year 5
8.0
Year 6
14.5
Year 7
6.9
Year 8
9.8
Year 9
9.0
Year 10+
16.1

Holdings within the Geography breakdown are classified by country of risk as determined by MSCI and Bloomberg.

Percentages may not add up to 100 due to rounding.

The Blended Index is composed of 25% Bloomberg Barclay’s U.S. Aggregate Total Return Value USD and 75% MSCI World Net Total Return USD Index, rebalanced monthly.

Portfolio Managers

Portfolio Managers

Ben Kirby, CFA
Ben Kirby, CFA
Co-Head of Investments and Managing Director
Ben Kirby is co-head of investments for Thornburg Investment Management. He is responsible for driving the investment process at the firm level. Ben is also a portfolio manager on multiple strategies. He joined Thornburg in 2008 as equity research analyst, was promoted to associate portfolio manager in 2011, and was named portfolio manager and managing director in 2013. Ben holds…
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Matt Burdett
Matt Burdett
Portfolio Manager and Managing Director
Matt Burdett is portfolio manager for Thornburg Investment Management. He rejoined the firm in 2015 as an associate portfolio manager and was promoted to portfolio manager in 2018. Matt spent several years as a senior vice president and portfolio manager at PIMCO, where he co-managed various dividend-oriented strategies. Prior to his time at PIMCO, Matt worked as an equity analyst…
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Christian Hoffmann, CFA
Christian Hoffmann, CFA
Portfolio Manager and Managing Director
Christian Hoffmann is portfolio manager for Thornburg Investment Management. He joined the firm in 2012 as a fixed income securities analyst and was promoted to associate portfolio manager in 2014, then portfolio manager in 2018. Christian graduated cum laude from New York University with a BA in economics. He is also a CFA charterholder. Prior to joining Thornburg, he served…
Learn More

Literature

Fund Documents

Fact Sheet
Annual Report
Semi-annual report
Statement of Additional Information (SAI)

Nominating and Corporate Governance Committee Charter

Audit Committee Charter

Monthly Distribution Characteristics (19a-1)

Tax Information

2022 Tax Information

Tax FAQ

Related Content

Fixed Income
The Situation Remains Fluid: An Update on the Banking Industry
Income
Thornburg Income Builder Opportunities Trust – 4th Quarter Update
Markets & Economy
Thornburg Investment Income Builder Fund – 4th Quarter Update

Important Information

There are risks inherent in any investment, including the possible loss of principal. There can be no assurance that the Trust will achieve its investment objective, and you could lose some or all of your investment. Closed-end funds frequently trade at discounts to their net asset value. Past performance is not guaranteed. Current performance may be lower or higher than the performance data quoted.

* The Trust’s common shares are listed on the NASDAQ Stock Market LLC under the trading or ticker symbol “TBLD”. The Trust is newly organized and the Trust’s common shares have little history of public trading.

† The Trust has a level distribution policy and the Trust intends to distribute to Common Shareholders regular monthly cash distributions of all or a portion of its net investment income. There is no assurance the Trust will make its initial monthly distribution or continue to pay regular monthly distributions or that it will do so at a particular rate. At times, to maintain a stable level of distributions, the Trust may pay out less than all of its net investment income or pay out accumulated undistributed income, or return capital, in addition to current net investment income. A return of capital reduces a Common Shareholder’s tax basis, which could result in higher taxes when the Common Shareholder sells such Common Shares. This may cause the Common Shareholder to owe taxes even if it sells Common Shares for less than the original purchase price of such Common Shares. The Trust reserves the right to change its distribution policy and the basis for establishing the amount and rate of its distributions at any time upon notice to shareholders.

‡ The Trust expects to sell out-of-the-money covered call options on a portion of the individual common stocks in its portfolio and sell call and put options on indices of securities and sectors of securities. The notional amount of the options strategy will be approximately 10% to 40% of the Trust’s Managed Assets.

§ The Trust does not intend to employ leverage. Although it has no present intention to do so, the Trust reserves the right to in the future employ leverage through (i) borrowings of up to 33 1/3% of Managed Assets; or (ii) issue Preferred Shares in an amount up to 50% of the Trust’s Managed Assets. If the Trust uses a combination of borrowing money and issuing Preferred Shares, the maximum allowable leverage will be between 33 1/3% and 50% (but in no event more than 50%) of Managed Assets, which is the maximum extent permitted by the 1940 Act. The Trust is permitted to use the following forms of leverage in combination: (a) reverse repurchase agreements, dollar rolls, derivatives or transactions that have the economic effect of leverage, (b) borrowings from a financial institution, and (c) the issuance of preferred shares.

ll The Trust will terminate on or before August 2, 2033 (the “Termination Date”); provided, that if the Board of Trustees of the Trust (the “Board” or the “Trustees”) believes that, under then-current market conditions, it is in the best interests of the Trust to do so, the Trust may extend the Termination Date: (i) once for up to one year (i.e., up to August 2, 2034), and (ii) once for up to an additional six months (i.e., up to February 2, 2035), in each case upon the affirmative vote of a majority of the Board and without the approval of the holders of the Common Shares of the Trust (the “Common Shareholders”). In addition, as of a date within 12 months preceding the Termination Date, the Board may cause the Trust to conduct a tender offer to all Common Shareholders to purchase Common Shares of the Trust at a price equal to NAV per Common Share on the expiration date of the tender offer (an “Eligible Tender Offer”). In an Eligible Tender Offer, the Trust will offer to purchase all Common Shares held by each Common Shareholder; provided, that if the number of properly tendered Common Shares would result in the Trust’s net assets totaling less than $100 million of net assets (the “Termination Threshold”), the Eligible Tender Offer will be terminated and no Common Shares will be repurchased pursuant to the Eligible Tender Offer. Instead, the Trust will begin (or continue) liquidating its portfolio and proceed to terminate on or before the Termination Date. Following the completion of an Eligible Tender Offer, the Board may eliminate the limited term structure of the Trust upon the affirmative vote of a majority of the Board and without the approval of Common Shareholders.

The Trust is not a so called “target date” or “life cycle” fund whose asset allocation becomes more conservative over time as its target date, often associated with retirement, approaches. In addition, the Trust is not a “target term” fund whose investment objective is to return its original NAV on the termination date.

Risk Considerations. Investments carry risks, including possible loss of principal. There is no guarantee the Trust’s investment objective will be achieved. Closed-end fund shares may frequently trade at a discount or premium to their net asset value. Additional risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in small and mid-capitalization companies may increase the risk of greater price fluctuations. Portfolios investing in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds. The value of bonds will fluctuate relative to changes in interest rates, decreasing when interest rates rise. Investments in the Fund are not FDIC insured, nor are they bank deposits or guaranteed by a bank or any entity. Performance data quoted represents past performance. Past performance is not guaranteed. Current performance may be lower or higher than the performance data quoted. An investment in this Trust presents a number of risks and is not suitable for all investors. Investors should carefully review and consider potential risks before investing. These and other risk considerations are described in more detail on the Trust’s web page at www.thornburg.com.

Portfolio attributes and holdings can and do vary. Cash includes cash equivalents. Returns for less than one year are not annualized.

Please see our glossary for a definition of terms.

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