Thornburg Investment Income Builder Fund

A GLOBAL SEARCH FOR GROWING INCOME & PRICE APPRECIATION

Thornburg Investment Income Builder is a globally oriented portfolio whose aim is to provide an attractive and growing income stream, with capital appreciation, over time. A dynamic blend of global dividend-paying stocks and bonds of virtually any type, Income Builder is broadly flexible in pursuit of its objectives.

Thornburg Investment Income Builder Team“The portfolio’s goals are to provide interesting current income, and over the long term, to grow that income on a per-share basis. The direct consequence of success in those two is likely to be capital appreciation. Because global dividend-paying stocks are so well suited to the above goals, our portfolio has generally been, and is likely to continue to be, dominated by that asset class. Fixed income and other income-generating asset classes are also important to the portfolio. If we’re able to find companies that show both an ability and willingness to pay shareholders a significant portion of earnings, and those companies are in a position to create value over time through growth, we may find continued success.”

— Brian McMahon

 

WE GO WHERE THE INCOME IS

Global Diversification Can Improve Yield
U.S. corporations have historically reinvested capital in businesses rather than returning it to shareholders in the form of dividends. But in overseas markets with stronger dividend-paying cultures, this tendency is reversed.

BEYOND UTILITIES

Investors sometimes think of high dividend yields as limited to the utilities or telecom sectors, but we search for promising dividend payers in a range of sectors and geographies.

A SUPPORTING ROLE: BONDS OF ANY TYPE

Fixed income plays a supporting role in the portfolio, aiding in income production and potentially muting volatility over time. And in the Income Builder portfolio, we don’t limit ourselves to bonds of a particular type or credit quality in the search for the best risk/reward trade-off. Bonds have ranged from under 10% today to more than 40% of fund assets.

BEYOND CURRENT YIELD

Investors tend to focus on current yield, or current income divided by current price. While useful, current yield is only a snapshot. It can be helpful to look beyond it—to yield on cost, which is annual income divided by the cost of an initial investment—reflecting an investor’s yield on their original purchase.

If one were to invest a hypothetical $100,000 in a security with a current yield of 5% at purchase, and income grew by 50% over time, the yield on cost of the initial investment would have grown from 5% to 7.5%.

THE IMPORTANCE OF PER-SHARE CASH FLOW

With both declining price and declining income, an investor can experience a current yield that remains level. Similarly, with a rising price and flat income, current yield would decline. So as investors choose which vehicles to use for income, it’s important that they understand per-share cash flow (the actual dollar amount of income received per share) as a true measure of income—along with current yield and yield on cost.
Important Information

The Fund is offered solely to non-U.S. investors under the terms and conditions of the Fund’s current Prospectus. A copy of the full Prospectus and KIID for the Fund may be obtained by contacting the local Paying Agent through the Fund’s Transfer Agent, State Street Fund Services (Ireland) Limited or in the forms and literature section of this website. The Prospectus and KIID contain important information about the Fund and should be read carefully before investing.

Investments carry risks, including possible loss of principal. Additional risks may be associated with investments 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. Unlike bonds, bond funds have ongoing fees and expenses. Investments in mortgage-backed securities (MBS) may bear additional risk. Investments in the Fund are not insured, nor are they bank deposits or guaranteed by a bank or any other entity.

This material constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (the “Act”) and the handbook of rules and guidance issued from time to time by the FCA (the "FCA Rules"). This material is for information purposes only and does not constitute an offer to subscribe for or purchase any financial instrument. Thornburg Investment Management Ltd. ("TIM Ltd.") neither provides investment advice to, nor receives and transmits orders from, persons to whom this material is communicated nor does it carry on any other activities with or for such persons that constitute "MiFID or equivalent third country business" for the purposes of the FCA Rules. All information provided is not warranted as to completeness or accuracy and is subject to change without notice.

The Fund is a sub-fund of Thornburg Global Investment plc, an open-ended umbrella type investment company with segregated liability between sub-funds, authorised by the Central Bank of Ireland (CBI) on 25 November 2011 as an investment company pursuant to the UCITS Regulations. Authorisation of the Company by the CBI is not an endorsement or guarantee of the Company by the CBI nor is the CBI responsible for the contents of the Prospectus or KIID.

Thornburg Investment Income Builder Fund's Blended Index is composed of 25% Bloomberg Barclays U.S. Aggregate Bond Index and 75% MSCI World Index, rebalanced monthly.

To determine a fund's Morningstar Rating™, funds and other managed products with at least a three-year history are ranked in their categories by their Morningstar Risk-Adjusted Return scores. The top 10% receive 5 stars; the next 22.5%, 4 stars; the middle 35%, 3 stars; the next 22.5%, 2 stars; and the bottom 10% receive 1 star. The Risk-Adjusted Return accounts for variation in a managed product's monthly excess performance (excluding sales charges), placing more emphasis on downward variations and rewarding consistent performance. Other share classes may have different performance characteristics. © 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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Administrator: State Street Fund Services (Ireland) Limited, ThornburgTA@statestreet.com

Shares of the Fund are only available for certain non-U.S. persons in select transactions outside the United States, or, in limited circumstances, in transactions which are exempt in reliance on Regulation S from the registration requirements of the United States Securities Act of 1933, as amended and such other laws as may be applicable. This does not constitute an offer to subscribe for shares in the Fund and is directed at investment professionals. For information regarding the jurisdictions in which the Fund is registered or passported, please contact your Thornburg sales representative. Fund shares may be sold on a private placement basis depending on the jurisdiction. This should not be used or distributed in any jurisdiction, other than in those in which the Fund is authorized, where authorization for distribution is required. Thornburg is authorized by the Fund to facilitate the distribution of shares of the Fund in certain jurisdictions through dealers, referral agents, subdistributors and other financial intermediaries. Any entity forwarding this material, which is produced by Thornburg in the United States, to other parties takes full responsibility for ensuring compliance with applicable securities laws in connection with its distribution.

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