Anywhere along the Yield Curve, Anywhere along the Credit Spectrum

Thornburg Strategic Municipal Income Fund is a broadly flexible national municipal portfolio with the freedom to invest at any point along the yield curve, anywhere along the credit spectrum. It is not a laddered portfolio, but is managed opportunistically, assuming a measured amount of additional risk in pursuit of a high level of tax-exempt current income and higher total return.

Working Photo"This fund has the broadest mandate of any of the Thornburg municipal bond funds, which allows the fund to "go where the value is." We leverage our focus on fundamental, bottom-up credit analysis — a skill long ignored by the municipal bond market but now back in favor — to take advantage of these opportunities. The fund does not have the classic Thornburg "laddered" structure, and this allows it to take advantage of opportunities offered further out the yield curve. Think of the fund as a general municipal bond fund with the capability of exploiting a greater number of opportunities provided by the markets."

— Chris Ryon

Defined by Flexibility

The strategy is defined by its flexibility. We have the ability to invest anywhere along the yield curve, depending upon our perception of where the greatest relative value for a given level of risk lies. Terms range from overnight to around 40 years.

We also enjoy the flexibility to invest anywhere along the credit spectrum and can place up to 50% of the portfolio in non-investment-grade bonds.

Managed Opportunistically

The fund is managed opportunistically, with the aim of capturing the most compelling opportunities the markets have to offer.

Using Thornburg’s Bottom-Up, Fundamentally Focused Style

We employ the same fundamental, bottom-up research and the same buy/sell discipline as do the Thornburg core bond funds — with a dip further down the credit spectrum.

With Even More Critical, Rigorous Credit Work

The $308 million strategy holds about 222 positions as of 9/30/16. A smaller number of issuers mandates a rigorous degree of credit research to which Thornburg Investment Management is uniquely equipped to conduct.

Invested Across the Credit Spectrum

The portfolio is currently positioned in mostly investment-grade bonds, see the portfolio tab above for the current credit quality breakdown.

Broader Opportunity Set than Some General Municipal Funds

With the flexibility to invest anywhere along the yield curve and anywhere along the credit spectrum, the fund has the ability to capture a broader set of opportunities than some general municipal funds, which may be more restricted in their investment universe. While we enjoy that flexibility, we do not abandon credit work in pursuit of yield.

Diversify Across the Yield Curve with Thornburg Municipal Funds

2014 Estimated Yield MSCI Country Indices
Important Information
Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or visit our literature center. Read them carefully before investing.

Investments carry risks, including possible loss of principal. 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. This effect is more pronounced for longer-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. 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 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 the Fund are not FDIC insured, nor are they bank deposits or guaranteed by a bank or any other entity.

Credit quality ratings for Thornburg’s municipal portfolios used the highest rating available from either Standard & Poor’s or Moody’s Investors Service.

A bond credit rating assesses the financial ability of a debt issuer to make timely payments of principal and interest. Ratings of AAA (the highest), AA, A, and BBB are investment-grade quality. Ratings of BB, B, CCC, CC, C and D (the lowest) are considered below investment grade, speculative grade, or junk bonds.

The performance of any index is not indicative of the performance of any particular investment. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. Investors may not make direct investments into any index.

Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses.

Income earned from municipal bonds is exempt from regular federal and in some cases, state and local income tax. Income may be subject to the alternative minimum tax (AMT).

Class I shares may not be available to all investors. Minimum investments for the I share class may be higher than those for other classes.

There is no guarantee that the Fund will meet its investment objectives.

Please see our glossary for a definition of terms.

Thornburg mutual funds are distributed by Thornburg Securities Corporation.

Thornburg Investment Management, Inc. mutual funds are sold through investment professionals including investment advisors, brokerage firms, bank trust departments, trust companies and certain other financial intermediaries. Thornburg Securities Corporation (TSC) does not act as broker of record for investors.