Limited Term Municipal Fund

The Thornburg Limited Term Municipal Fund, (the "Fund") did not declare capital gain dividends during 2016.

Reporting Requirements for your 2016 Federal Return: Individuals

Your dividends from the Fund must be reported on your 2016 federal income tax return. For the 2016 calendar year, 0.03% of the dividends paid by the Fund are taxable ordinary income (box 1a of Form 1099-DIV) and 99.97% of the dividends paid by the Fund are exempt from regular federal income tax (box 10 of Form 1099-DIV). To the best of our knowledge, none of the income earned by the Fund is subject to the alternative minimum tax applicable to individuals.

Special Requirements for Corporations

Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, should be included in the corporation’s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation.

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 2016.

Reporting Requirements for your 2016 State of Indiana Return: Individuals

For Indiana residents who owned shares in the Fund, a portion of the dividends may be exempt from Indiana state income tax.

Interest from certain bonds, notes, and municipal bonds issued by non-federal governmental entities outside of Indiana are now subject to Indiana state income tax if acquired on or after January 1, 2012. Previously, Indiana provided an exemption for interest earned from non-Indiana sources.

For the calendar year 2016, the Fund generated 56.19% of earned income from non-Indiana bonds purchased on or after January 1, 2012. The Fund generated 43.81% of earned income from all Indiana bonds plus non-Indiana bonds purchased prior to January 1, 2012.

To determine the amount of the 2016 dividends that are subject to Indiana state income tax, multiply the taxable percentage of 56.19% by the federal tax exempt dividends in box 10 of Form 1099-DIV. To determine the amount of 2016 dividends that may be exempt from Indiana state income tax, multiply the Indiana exempt percentage of 43.81% by the federal tax exempt dividends in box 10 of Form 1099-DIV.

Remember: State and local taxes vary. Please contact your tax advisor for information on those taxes.

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 2016. 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.

State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average 2016
Alabama 1.24% 1.18% 1.15% 1.12% 1.01% 1.00% 1.01% 0.94% 0.89% 0.89% 1.05% 1.05% 1.04%
Alaska 0.64% 0.64% 0.62% 0.58% 0.58% 0.58% 0.58% 0.57% 0.56% 0.56% 0.57% 0.57% 0.59%
Arizona 3.79% 3.79% 3.73% 3.63% 3.46% 3.18% 3.05% 3.04% 2.94% 2.93% 2.58% 2.59% 3.23%
Arkansas 0.47% 0.47% 0.46% 0.45% 0.45% 0.31% 0.25% 0.25% 0.24% 0.23% 0.23% 0.23% 0.34%
California 10.40% 10.22% 10.21% 9.86% 9.82% 9.61% 9.49% 9.46% 9.25% 9.85% 9.70% 9.78% 9.80%
Colorado 1.58% 1.58% 1.56% 1.57% 1.57% 1.61% 1.66% 1.74% 1.57% 1.36% 1.26% 1.18% 1.52%
Connecticut 1.54% 1.55% 1.56% 1.48% 1.58% 1.93% 2.30% 2.30% 2.42% 2.38% 2.39% 2.30% 1.98%
Delaware 0.00% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%
District of Columbia 0.42% 0.41% 0.42% 0.39% 0.40% 0.38% 0.40% 0.41% 0.38% 0.28% 0.28% 0.28% 0.37%
Florida 9.20% 9.24% 9.07% 8.76% 8.48% 8.43% 8.15% 8.08% 7.92% 7.63% 7.44% 7.44% 8.31%
Georgia 2.55% 2.55% 2.50% 2.42% 2.41% 2.40% 2.42% 2.40% 2.35% 2.37% 2.11% 2.04% 2.38%
Guam 0.97% 0.96% 0.95% 0.91% 0.92% 0.90% 0.92% 0.91% 0.89% 0.89% 0.90% 0.75% 0.91%
Hawaii 0.65% 0.85% 0.92% 0.93% 0.89% 0.92% 0.89% 0.89% 0.90% 0.86% 0.89% 0.85% 0.87%
Idaho 0.45% 0.44% 0.44% 0.42% 0.42% 0.41% 0.53% 0.53% 0.52% 0.52% 0.52% 0.53% 0.48%
Illinois 7.26% 7.45% 7.60% 7.38% 7.39% 7.05% 6.95% 6.89% 7.06% 7.54% 7.54% 7.68% 7.32%
Indiana 2.75% 2.67% 2.68% 2.56% 2.53% 2.50% 2.42% 2.29% 2.23% 2.21% 2.18% 2.25% 2.44%
Iowa 0.56% 0.53% 0.51% 0.49% 0.49% 0.48% 0.49% 0.47% 0.44% 0.45% 0.45% 0.45% 0.48%
Kansas 0.72% 0.76% 0.71% 0.70% 0.68% 0.69% 0.69% 0.68% 0.68% 0.65% 0.67% 0.71% 0.70%
Kentucky 0.53% 0.49% 1.04% 2.56% 2.56% 2.55% 2.57% 2.60% 2.58% 2.59% 2.58% 2.33% 2.08%
Louisiana 3.55% 3.45% 3.37% 3.27% 3.23% 3.15% 3.19% 3.16% 3.03% 2.99% 3.01% 3.02% 3.20%
Maine 0.09% 0.09% 0.09% 0.09% 0.09% 0.09% 0.09% 0.08% 0.08% 0.08% 0.08% 0.08% 0.09%
Maryland 0.34% 0.36% 0.35% 0.36% 0.33% 0.34% 0.33% 0.33% 0.32% 0.31% 0.35% 0.37% 0.34%
Massachusetts 1.49% 1.43% 1.48% 1.55% 1.68% 1.76% 1.84% 1.76% 1.51% 1.55% 1.56% 1.61% 1.60%
Michigan 4.29% 4.25% 4.20% 4.06% 4.03% 3.97% 3.92% 4.27% 4.41% 4.36% 4.31% 4.31% 4.20%
Minnesota 1.19% 1.20% 1.19% 1.14% 1.09% 1.09% 1.10% 1.09% 1.07% 1.06% 1.07% 1.07% 1.11%
Mississippi 0.40% 0.36% 0.35% 0.34% 0.34% 0.27% 0.27% 0.26% 0.26% 0.26% 0.27% 0.26% 0.30%
Missouri 1.33% 1.29% 1.27% 1.20% 1.25% 1.26% 1.28% 1.28% 1.27% 1.28% 1.32% 1.38% 1.28%
Montana 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.01% 0.00% 0.01% 0.00%
Nebraska 0.15% 0.15% 0.15% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14%
Nevada 2.70% 2.69% 2.65% 2.57% 2.56% 2.60% 2.73% 2.76% 2.64% 2.64% 2.65% 3.17% 2.70%
New Hampshire 0.41% 0.37% 0.37% 0.38% 0.42% 0.42% 0.42% 0.40% 0.36% 0.30% 0.31% 0.32% 0.37%
New Jersey 3.05% 3.03% 2.98% 2.88% 2.88% 2.83% 2.88% 2.81% 2.74% 2.70% 3.07% 2.98% 2.90%
New Mexico 0.79% 0.80% 0.78% 0.83% 0.90% 0.91% 0.80% 0.77% 0.80% 0.71% 0.63% 0.55% 0.77%
New York 8.10% 8.18% 8.05% 8.11% 8.20% 8.25% 8.17% 8.21% 8.51% 8.77% 8.44% 8.58% 8.29%
North Carolina 1.92% 1.95% 1.85% 1.88% 1.84% 1.99% 1.99% 1.96% 1.91% 1.90% 2.00% 1.88% 1.92%
North Dakota 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.04% 0.04% 0.04% 0.05% 0.04% 0.05%
Ohio 3.27% 3.30% 3.24% 3.26% 3.37% 3.19% 3.11% 3.18% 3.36% 3.40% 3.24% 2.89% 3.23%
Oklahoma 0.93% 0.92% 0.95% 0.98% 0.95% 0.94% 0.92% 0.91% 0.81% 0.82% 0.84% 0.85% 0.90%
Oregon 0.27% 0.37% 0.27% 0.33% 0.28% 0.32% 0.34% 0.55% 0.50% 0.48% 0.45% 0.37% 0.38%
Pennsylvania 5.28% 5.25% 5.23% 5.09% 5.08% 5.05% 5.08% 5.49% 5.77% 5.49% 5.73% 5.70% 5.35%
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 1.48% 1.52% 1.44% 1.42% 1.39% 1.40% 1.39% 1.38% 1.37% 1.35% 1.39% 1.38% 1.41%
South Carolina 0.52% 0.52% 0.51% 0.50% 0.49% 0.49% 0.49% 0.49% 0.49% 0.57% 0.59% 0.57% 0.52%
South Dakota 0.46% 0.46% 0.45% 0.44% 0.43% 0.41% 0.42% 0.41% 0.39% 0.39% 0.38% 0.38% 0.42%
Tennessee 0.96% 0.95% 0.94% 0.91% 0.91% 1.44% 1.45% 1.44% 1.43% 1.42% 1.45% 1.44% 1.23%
Texas 6.92% 6.97% 7.34% 7.77% 8.07% 8.48% 8.61% 8.37% 9.09% 9.03% 9.48% 9.71% 8.32%
US Virgin Islands 0.24% 0.23% 0.24% 0.23% 0.23% 0.22% 0.23% 0.23% 0.22% 0.17% 0.17% 0.18% 0.22%
Utah 0.06% 0.06% 0.12% 0.18% 0.23% 0.13% 0.13% 0.13% 0.20% 0.12% 0.17% 0.24% 0.15%
Vermont 0.51% 0.49% 0.50% 0.48% 0.48% 0.47% 0.46% 0.45% 0.44% 0.44% 0.44% 0.45% 0.47%
Virginia 0.20% 0.21% 0.20% 0.19% 0.19% 0.19% 0.19% 0.16% 0.16% 0.15% 0.16% 0.16% 0.18%
Washington 2.27% 2.26% 2.21% 2.15% 2.18% 2.17% 2.18% 2.13% 2.03% 2.05% 2.07% 2.04% 2.15%
West Virginia 0.10% 0.10% 0.09% 0.09% 0.09% 0.09% 0.09% 0.09% 0.09% 0.09% 0.09% 0.09% 0.09%
Wisconsin 0.96% 0.94% 0.94% 0.90% 0.94% 0.94% 0.92% 0.80% 0.72% 0.72% 0.73% 0.75% 0.86%
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.

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. Unlike bonds, bond funds have ongoing fees and expenses. Investments in the Fund are not FDIC insured, nor are they bank deposits or guaranteed by a bank or any other entity.

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.