Thornburg Limited Term Municipal Fund
California Portfolio-A Shares=
Outperformed Taxable and Tax - Free Money Market Funds
INVESTORS SOMETIMES ASK US TO COMPARE LIMITED TERM MUNICIPAL FUND TO MONEY
MARKET FUND RETURNS. THESE INVESTMENTS HAVE CERTAIN DIFFERENCES, AND INVESTORS
IN LIMITED TERM MUNICIPAL FUND TOOK MORE RISK THAN MONEY MARKET FUND INVESTORS
TO EARN THEIR HIGHER RETURNS= On September 1, 1994 Thornburg Limited Term
Municipal Fund- California Portfolio began offering Class C Shares of the Fund.
The chart above is for the Fund's Class A Shares only. Class C Shares have
different sales charges and expenses. See the inside back cover page for the 30
day SEC yield and the total returns at the maximum offering prices for one year,
five years, and since inception for each class of shares of the Fund.
In this space, we showed a graph depicting total dollar return (increase in
investment) based on a $100,000.00 investment. We compared total returns from
three separate investments from 2/19/87 through 12/31/95 and included applicable
sales charges and fund expenses.
The three investments used in the comparison were Donoghue's Taxable Money
Market Fund Average, California Tax Free Money Market Fund Average, & Limited
Term Municipal Fund, Inc. -California Portfolio-(A shares).
The returns for each investment (on top of the original $100,000.00) were as
follows:
Donoghue's Taxable Money Market Fund Average: $34,017
California Tax Free Money Market Fund Average: $38,173
Limited Term Municipal Fund, Inc. -California Portfolio-(A shares): $68,076
Note 1: Future increases, if any, of any of these investments may bear no
relationship to prior increases. Quotations for the money fund averages are
based upon 30 day yield quotations for taxable and tax-exempt money funds as
quoted in "Donoghue's Money Fund Report" for the months covered by this
analysis. The increase for the Class A Shares of Limited Term Municipal Fund -
California Portfolio is based upon the dividends paid for the months covered by
this analysis, the beginning offering price at $12.38 per share and the ending
NAV at $12.78 per share. These investments returned the $100,000 initial
investment in addition to the amounts shown above.
Note 2: This analysis does not take into account the effect, if any, of the
federal alternative minimum tax. This analysis assumes the income from the
taxable money fund was taxed at a 31% federal tax rate through 1992 and a 39.6%
rate from 1993 to 1995. It also assumes that the income from the taxable money
fund is taxed by the state of California at 11%. The portion of the increase of
Limited Term Municipal Fund, California Portfolio representing appreciation of
the share price is assumed to be taxed at a 28% federal tax rate and a11%
California tax rate. The average money market fund increases shown above may
differ from the return of a particular money market fund. It is not possible to
invest in these money fund averages.
Note 3: The net asset value of the money funds did not fluctuate. The net asset
value of the Class A Shares of LTCAX did vary from time to time, and will
continue to vary in the future. The analysis assumes that the investor received
the net asset value of the shares owned, plus accrued income, at time of sale.
Due to the effect of sales commissions, the net asset value of the Limited Term
Municipal Fund's Class A Shares is less than the offering price of the shares.
Redemptions are made at the then current net asset value which may give you a
gain or loss when you sell your shares.
Note 4: This analysis assumes that the dividends from each of these investment
vehicles were reinvested and compounded monthly. Most money funds declare
dividends daily and pay them monthly. Limited Term Municipal Fund also declares
dividends daily and pays them monthly.
Dear Shareholder:
1995 continued a period of change in the bond market. After rising to their
highest levels in several years in November 1994, interest rates fell steadily
during 1995. The net asset value of Thornburg Limited Term Municipal Fund
California Portfolio A shares increased 64 cents per share to $12.78 over the
year. If you were with us for the entire period, you received dividends of 58.5
cents per share. If you reinvested your dividends, you received 59.7 cents per
share. Investors who owned C Shares received dividends of 51.3 and 52.3 cents
per share, respectively.
In recent months, the Federal Reserve has lowered the target interest rate for
overnight loans between banks three times. The current level is 5.25%. These
drops in short interest rates in the U.S. have been matched or exceeded by
interest rate decreases in virtually every developed economy in the world. Does
this matter to you? It does if you have large amounts of money invested in money
market funds or short maturity bank deposits.* Taken as a group, investors in
the U.S. increased their holdings of money funds and bank certificates of
deposit by approximately $340 billion in 1995. This is a 19% increase in one
year! As I write this letter, the income earned by those investments is
dropping, with no corresponding increase in the market value of the funds
invested.
Your Limited Term Municipal Fund portfolio currently holds over 130 municipal
obligations from California municipal borrowers. Approximately 83% of the bonds
are rated A or better by one of the major rating agencies. As you know, we
"ladder" the maturities of the bonds in your portfolio so that some bonds are
scheduled to mature at par during each of the next 10 years. Today, your fund's
weighted average maturity is approximately 4 years, and we always keep it below
5 years. Percentages of the portfolio maturing within each of the next 10 years
are summarized on the next page:
*Money market funds seek to maintain a stable $1 net asset value. Bank deposits
are usually insured by the FDIC. Their principal value does not fluctuate and
their yield is often fixed at the time of deposit. The yields and principal
value of your fund varies over time.
% of portfolio maturing within Cumulative % maturing by end of
1 year = 16% year 1 = 16%
1 to 2 years = 9% year 2 = 25%
2 to 3 years = 15% year 3 = 40%
3 to 4 years = 17% year 4 = 57%
4 to 5 years = 15% year 5 = 72%
5 to 6 years = 9% year 6 = 81%
6 to 7 years = 11% year 7 = 92%
7 to 8 years = 4% year 8 = 96%
8 to 9 years = 3% year 9 = 99%
9 to 10 years = 1% year 10 = 100%
Over the years, our practice of laddering a diversified portfolio of short and
intermediate maturity municipal bonds has allowed your fund to consistently
perform well in varying interest rate environments. For instance, the A shares
of Limited Term Municipal Fund-California Portfolio received "A" letter grades
for one, three, and five year performance relative to other short term municipal
bond funds through December 31, 1995.** These rankings, which were published in
The Wall Street Journal, reflect total returns in the top 20% of all short term
municipal bond funds for those periods.
Your portfolio includes no direct uninsured obligations of Orange County or any
other borrower that has had its bond rating lowered due to the investment
debacle there. Headlines associated with consequences of the unfortunate
financial speculation by the Orange County treasurer's office have overshadowed
steady improvement in the overall economy of California. In conjunction with
better expense control, this improvement has stabilized the state's finances.
Some of the state's financial improvement has come at the expense of local and
county governments. We have attempted to avoid municipal obligations that will
be materially impacted by these expense cutbacks.
We believe the investment program of your fund is a thoroughly sensible one over
time. At today's market prices and yields to maturity, the kinds of bonds you
own in this fund look attractive to me. Thank you for investing in Thornburg
Limited Term Municipal Fund.
Sincerely,
Brian J. McMahon
Managing Director
**Source: The Wall Street Journal, January 5, 1996. Performance data are
supplied by Lipper Analytical Services, Inc., and reflect performance for the 1,
3, and 5 year periods ending December 31, 1995. An "A" ranking reflects total
returns in the top 20% of all funds within the short term municipal objective,
as defined by The Wall Street Journal. The average maturity and average quality
of the funds within the short municipal objective may differ. At December 31,
1995, 54, 26 and 14 short municipal funds reported 1-year, 3-year, and 5-year
total returns, respectively. Performance calculations used to obtain these
rankings assume deduction of all expenses and reinvestment of all distributions,
but do not include the effect of any sales charge on total return.
s t a t e m e n t o f a s s e t s a n d l i a b i l i t i e s
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
December 31, 1995
(unaudited)
ASSETS
Investments, at value (cost $ 97,171,442) $ 99,741,793
Cash 732,263
Receivable for fund
shares sold 9,618
Interest receivable 1,830,438
Prepaid expenses and other assets 34,324
TOTAL ASSETS 102,348,436
LIABILITIES
Payable for securities purchased 1,113,295
Dividends payable 131,000
Payable for fund
shares redeemed 217,900
Accounts payable and accrued expenses 47,610
Accounts payable investment adviser (Note 3) 88,838
TOTAL LIABILITIES 1,598,643
NET ASSETS
$ 100,749,793
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($ 99,415,158 applicable to 7,776,901 shares of
beneficial interest outstanding - Note 4) $ 12.78
Maximum sales charge, 2.50% of offering
price (2.57% of net asset value per share) .33
Maximum Offering Price Per Share $ 13.11
Class C Shares:
Net asset value and offering price per share*
($ 1,334,635 applicable to 104,312 shares of
beneficial interest outstanding - Note 4) $ 12.79
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge. See notes to financial statements.
s t a t e m e n t o f o p e r a t i o n s
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
Six Month Period Ended December 31, 1995
(unaudited)
INVESTMENT INCOME
Interest income (net of premium amortized
of $ 113,467) ............................... $ 2,811,627
EXPENSES
Investment advisory fees (Note 3) ................ 375,991
Distribution and service fees (Note 3):
Class A Shares ............................... 61,775
Class B Shares ............................... 1,170
Class C Shares ............................... 3,292
Transfer agent fees .............................. 39,592
Custodian fees ................................... 33,005
Professional fees 16,882
Other expenses ................................... 8,863
TOTAL EXPENSES ......................... 540,570
Less:
Investment advisory fees deferred by
investment adviser (Note 3) ............ (28,521)
Expenses assumed by investment adviser (Note 3) (6,803)
NET EXPENSES ........................... 505,246
NET INVESTMENT INCOME .................. 2,306,381
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS - NOTE 5
Net realized gain on investments sold ............ 25,848
Increase in unrealized appreciation of investments 1,338,302
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS .......... 1,364,150
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .................... $ 3,670,531
See notes to financial statements ................
s t a t e m e n t s o f c h a n g e s i n n e t a s s e t s
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
(unaudited)
Six Month Period Year Ended
Ended December 31, 1995 June 30, 1995
- -----------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $ 2,306,381 $ 4,907,357
Net realized gain (loss) on
investments sold 25,848 ( 481,286)
Increase in unrealized
appreciation of investments 1,338,302 406,462
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 3,670,531 4,832,533
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (2,277,250) (4,870,883)
Class B Shares (6,799) (13,254)
Class C Shares (22,332) (23,220)
FUND SHARE TRANSACTIONS-- (Note 4)
Class A Shares (770,662) (12,810,506)
Class B Shares (594,362) 582,859
Class C Shares 530,192 799,527
NET INCREASE(DECREASE)IN NET ASSETS 529,318 (11,502,944)
NET ASSETS:
Beginning of period 100,220,475 111,723,419
End of period $ 100,749,793 $ 100,220,475
See notes to financial statements.
n o t e s t o f i n a n c i a l s t a t e m e n t s
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
Note 1 - ORGANIZATION
Thornburg Limited Term Municipal Fund, Inc. (the "Fund") was incorporated in
Maryland on February 14, 1984. The Fund was reorganized in 1986 as a series
investment company with separate investment portfolios. The current portfolios
are as follows: National Portfolio and California Portfolio (the "Portfolio").
The Fund is an open-end diversified management investment company, registered
under the Investment Company Act of 1940, as amended. The primary investment
objective of the Fund is to obtain as high a level of current income exempt from
federal income tax as is consistent with preservation of capital. In addition,
the California Portfolio will invest primarily in Municipal Obligations
originating in California with the object of obtaining exemption of interest
dividends from any income taxes imposed by California on individuals.
On September 1, 1994 the Portfolio began offering three classes of shares of
beneficial interest, Class A, Class B and Class C shares. All shares outstanding
prior to September 1, 1994 are considered Class A shares. On September 28, 1995,
all existing Class B shares were converted at net asset value, without the
imposition of a deferred sales charge, into Class A shares of an equivalent
value. The Fund no longer offers Class B shares. Each class of shares of a
Portfolio represents an interest in the same portfolio of investments of the
Fund, except that (i) Class A shares are sold subject to a front-end sales
charge collected at the time the shares are purchased and bear a service fee,
(ii) Class B shares were sold at net asset value without a sales charge at the
time of purchase, but were subject to a contingent deferred sales charge upon
redemption, and bore both a service fee and a distribution fee, (iii) Class C
shares are sold at net asset value without a sales charge at the time of
purchase, but, effective October 2, 1995, are subject to a contingent deferred
sales charge upon redemption within one year, and bear both a service fee and a
distribution fee, and (iv) the respective classes have different reinvestment
privileges. Additionally, each Fund may allocate among its classes certain
expenses, to the extent allowable to specific classes, including transfer agent
fees, government registration fees, certain printing and postage costs, and
administrative and legal expenses. Currently, class specific expenses of the
Portfolio are limited to distribution fees and certain custody and transfer
agent expenses.
Note 2 - SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies of the
Fund are as follows:
Valuation of Investments: In determining net asset value, the Portfolio utilizes
an independent pricing service approved by the Board of Directors. Debt
investment securities have a primary market over the counter and are valued on
the basis of valuations furnished by the pricing service. The pricing service
values portfolio securities at quoted bid prices or the yield equivalents when
quotations are not readily available. Securities for which quotations are not
readily available are valued at fair value as determined by the pricing service
using methods which include consideration of yields or prices of municipal
obligations of comparable quality, type of issue, coupon, maturity and rating;
indications as to value from dealers and general market conditions. The
valuation procedures used by the pricing service and the portfolio valuations
received by the Portfolio are reviewed by the officers of the Fund under the
general supervision of the Board of Directors. Short-term obligations having
remaining maturities of 60 days or less are valued at amortized cost, which
approximates market value.
Federal Income Taxes: It is the policy of the Fund to comply with the provisions
of the Internal Revenue Code applicable to "regulated investment companies" and
to distribute all of its taxable (if any) and tax exempt income to its
shareholders. Therefore, no provision for Federal income tax is required.
Dividends paid by the Portfolio for the period ended December 31, 1995 represent
exempt interest dividends which are excludable by shareholders from gross income
for Federal income tax purposes.
When-Issued and Delayed Delivery Transactions: The Portfolio may engage in
when-issued or delayed delivery transactions. To the extent the Portfolio
engages in such transactions, it will do so for the purpose of acquiring
portfolio securities consistent with its investment objectives and not for the
purpose of investment leverage or to speculate on interest rate changes. At the
time the Portfolio makes a commitment to purchase a security on a when-issued
basis, it will record the transaction and reflect the value in determining its
net asset value. When effecting such transactions, assets of the Portfolio of an
amount sufficient to make payment for the portfolio securities to be purchased
will be segregated on the Portfolio's records on the trade date. Securities
purchased on a when-issued or delayed delivery basis do not earn interest until
the settlement date.
Dividends: Net investment income of the Portfolio is declared daily as a
dividend on shares for which the Portfolio has received payment. Dividends are
paid monthly and are reinvested in additional shares of the Portfolio at net
asset value per share at the close of business on the dividend payment date, or
at the shareholder's option, paid in cash. Net capital gains, to the extent
available, will be distributed annually.
General: Securities transactions are accounted for on a trade date basis.
Interest income is accrued as earned. Premiums and original issue discounts on
securities purchased are amortized to call dates or maturity dates of the
respective securities. Realized gains and losses from the sale of securities are
recorded on an identified cost basis.
Use of Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
n o t e s t o f i n a n c i a l s t a t e m e n t s (continued)
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
Note 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an investment advisory agreement, Thornburg Management Company, Inc.
(the "Adviser") serves as the investment adviser and performs services for which
the fees are payable at the end of each month at annual rates ranging from 3/4
of 1% to 4/10 of 1% of the average daily net assets of the Portfolio.
In the event normal operating expenses of the Portfolio, exclusive of brokerage
commissions, taxes, interest, and extraordinary expenses, exceed the limits
prescribed by any state in which the Fund's shares are qualified for sale, the
Adviser will reimburse the Portfolio for such excess. No such reimbursement was
required as a result of this limitation. For the period ended December 31, 1995,
the Adviser voluntarily deferred a portion of its investment advisory fee
amounting to $ 28,521 and assumed certain operating expenses amounting to $
6,803.
The Fund has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Portfolio shares. For the
period ended December 31, 1995, the Distributor earned commissions aggregating $
6,588 from the sale of Class A shares, and collected contingent deferred sales
charges aggregating $ 2,845 and $ 1,070 from redemptions of Class B shares and
Class C shares of the Fund, respectively.
Pursuant to a Service Plan under Rule 12b-1 of the Investment Company Act of
1940, the Portfolio may reimburse to the Adviser amounts not to exceed .125 of
1% per annum of the average net assets of the Class A shares of the Fund and .25
of 1% per annum of the average net assets of the Class B and Class C shares of
the Fund for payments made by the Adviser to securities dealers and other
financial institutions to obtain various shareholder related services. The
Adviser may pay out of its own funds additional expenses for distribution of the
Portfolio's shares.
The Portfolio also has adopted a Distribution Plan pursuant to Rule 12b-1,
applicable only to the Portfolio's Class B and Class C shares, under which the
Portfolio can (i) reimburse the Distributor for certain distribution expenses on
a monthly basis at an annual rate of up to .75% of the average daily net assets
attributable to Class B shares, and (ii) compensate the Distributor for services
in promoting the sale of Class C shares of the Fund at an annual rate of up to
.75% of the average daily net assets attributable to Class C shares. Total fees
incurred by each class of shares of the Portfolio under their respective service
and distribution plans for the period ended December 31, 1995 are set forth in
the statement of operations.
Certain officers and directors of the Fund are also officers and /or directors
of the Adviser and the Distributor. The compensation of unaffiliated directors
of the Fund is borne by the Fund.
n o t e s t o f i n a n c i a l s t a t e m e n t s (continued)
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
Note 4 - SHARES OF BENEFICIAL INTEREST:
At December 31, 1995, there were 600,000,000 shares of the Fund (including
115,000,000 for the Portfolio) of $.001 par value common stock authorized and
capital paid-in aggregated $ 99,083,814. Transactions in shares of beneficial
interest were as follows:
Six Month Period Year Ended
Ended December 31, 1995 June 30, 1995
----------------- -------------
Class A Shares Shares Amount Shares Amount
Shares sold 579,747 $ 7,359,688 1,016,756 $ 12,634,104
Shares issued to shareholders
in reinvestment of
distributions 114,797 1,458,671 224,628 2,785,930
Shares repurchased (756,153) (9,589,021) (2,292,000) (28,230,540)
Net Decrease (61,609) ($ 770,662) (1,050,616)($ 12,810,506)
Class B Shares
Shares sold 17,477 $ 220,496 45,930 $ 572,142
Shares issued to shareholders
in reinvestment of
distributions 352 4,458 864 10,717
Shares repurchased (64,623) (819,316) - -
Net Increase (Decrease) (46,794) ($ 594,362) 46,794 $ 582,859
Class C Shares
Shares sold 63,010 $ 801,879 149,655 $ 1,864,152
Shares issued to shareholders
in reinvestment of
distributions 1,754 21,432 1,636 20,266
Shares repurchased (23,019) (293,119) (88,724) (1,084,891)
Net Increase 41,745 $ 530,192 62,567 $ 799,527
Note 5 - SECURITIES TRANSACTIONS
Purchases and proceeds from maturities or sales of investment securities of the
Portfolio, other than short-term securities, aggregated $15,064,864 and
$16,163,873, respectively. The cost of investments is the same for financial
reporting and Federal income tax purposes. At December 31, 1995, the aggregate
gross unrealized appreciation and depreciation, based on cost for Federal income
tax purposes, were $2,867,656 and $297,305, respectively.
Accumulated net realized losses from security transactions included in net
assets at December 31, 1995 aggregated $930,219.
For Federal income tax purposes, the Portfolio has realized capital loss
carryforwards of $930,219 from prior fiscal years available to offset future
realized capital gains. To the extent that such carryforwards are used, no
capital gains distributions will be made. The carryforwards expire as follows:
June 30, 1996 - $11,188, June 30, 1997 - $47,162, June 30, 1998 - $60,181, June
30, 1999 - $14,395, June 30, 2000 - $410, June 30, 2002 - $315,597, and June 30,
2003 -$481,286.
f i n a n c i a l h i g h l i g h t s
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
Per share operating performance
(for a share outstanding
throughout the period)
Six Month Period
Ended December 31, Year Ended June 30,
------------------ -------------------
1995 1995 1994 1993 1992 1991
---------------------------------------------------------
(unaudited)
Class of Shares: A A A A A A
Net asset value,
beginning of period $12.61 $12.57 $12.85 $12.48 $12.24 $12.11
Income from investment
operations:
Net investment income .29 .58 .58 .65 .72 .75
Net realized and unrealized
gain(loss)on investments .17 .04 (.28) .37 .24 .13
Total from investment
operations .46 .62 .30 1.02 .96 .88
Less dividends from:
Net investment income (.29) (.58) (.58) (.65) (.72) (.75)
Change in net asset value .17 .04 (.28) .37 .24 .13
Net asset value,
end of period $12.78 $12.61 $12.57 $12.85 $12.48 $12.24
Total return (a) 3.72% 5.12% 2.37% 8.36% 8.10% 7.45%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.61% (b) 4.69% 4.51% 5.07% 5.80% 6.08%
Expenses, after
expense reductions 1.00% (b) 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before
expense reductions 1.05% (b) 1.04% 1.03% 1.06% 1.10% 1.20%
Portfolio turnover rate 15.30% 18.54% 15.26% 20.81% 30.56% 39.66%
Net assets
at end of period (000) $99,415 $98,841 $111,723 $81,874 $53,130 $33,487
(a) Sales loads are not reflected in computing total return,
which is not annualized for periods less than one year.
(b) Annualized.
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
Per share operating performance
(for a share outstanding
throughout the period) (continued) Period from
Six Month Period Sept. 1, 1994 (a)
Ending December 31, to June 30,
1995 1995
---- -----
(unaudited)
Class of Shares: B* C B C
Net asset value,
beginning of period $12.62 $12.62 $12.55 $12.55
Income from investment
operations:
Net investment income .13 .26 .43 .42
Net realized and unrealized
gain(loss)on investments .06 .17 .07 .07
Total from investment
operations .19 .43 .50 .49
Less dividends from:
Net investment income (.13) (.26) (.43) (.42)
Change in net asset value .06 .17 .07 .07
Net asset value,
end of period $12.68 $12.79 $12.62 $12.62
Total Return (b) 1.59% 3.45% 3.99% 3.98%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.11% (c) 4.10% (c) 4.10% (c) 4.07% (c)
Expenses, after
expense reductions 1.62% (c) 1.50% (c) 1.60% (c) 1.63% (c)
Expenses, before
expense reductions 3.63% (c) 3.12% (c) 4.51% (c) 3.21% (c)
Portfolio turnover rate 15.30% 15.30% 18.54% 18.54%
Net assets
at end of period (000) $0 $1,335 $590 $790
(a) Commencement of sales of Class B and Class C shares.
(b) Sales loads are not reflected in computing total return,
which is not annualized for periods less than one year.
(c) Annualized.
* On September 28, 1995, all Class B shares were converted into
Class A shares.
s c h e d u l e o f i n v e s t m e n t s
Thornburg Limited Term Municipal Fund, Inc. - California Portfolio
December 31, 1995 CUSIPS: Class A - 532-723-202, Class B - 532-723-608,
Class C - 532-723-707
NASDAQ Symbols: Class A - LTCAX
Principal Credit Rating+
Amount Issuer-Description Moody's/S&P Value
$ 615,000 Alameda-Contra Costa Transit District Refunding
Certificate of Participation Series 1989,
7.20% due 8/1/00 Baa/BBB- $ 669,637
370,000 Albany Public Facilities Financing Authority
Lease Revenue, 6.60% due 9/1/00 (Library
Community Center Project) Baa1/NR 395,156
230,000 Antioch Unified School District Certificate of
Participation, 0% due 7/1/05
(Insured: FSA) Aaa/AAA 125,868
15,000 Belmont Curtis Creek School Boards Association Financing
Corporation Certificate of Participation, 7.50%
due 3/1/96 (Capital Outlay Financing
Program Project) NR/NR 15,092
1,300,000 Berkeley Health Facility Revenue Refinancing Series A,
5.70% due 12/1/98 (Alta Bates Medical
Center Project) Baa/BBB+ 1,308,606
500,000 California Counties Lease Finance Authority
Certificate of Participation,
7.30% due 10/1/98 A/NR 506,815
500,000 California Educational Facilities Authority
Revenue Series 1993, 5.15% due 9/1/03
(Santa Clara University Project) A1/NR 518,230
840,000 California HFA Home Ownership and Improvement Series A,
0% due 2/1/04 (Insured: FHA/VA) Aa/AA- 496,003
670,000 California HFA Revenue Series 1985-B, 9.875%
due 2/1/17 A2/AA- 709,510
30,000 California HFA Single Family Mortgage Revenue Series
1982-A, 10.00% due 2/1/02 (LOC: Citibank) Aa/AA- 30,167
145,000 California HFA Revenue Series 1990-A, 0%
due 8/1/01 Aa/AA- 98,074
550,000 California HFA, 6.40% due 9/1/98 (San Gabriel Hospital
Project; Insured: Cal. Mortgage) NR/A 561,000
500,000 California HFA, 7.80% due 7/1/06 (Episcopal Homes
Project; Insured: Cal. Mortgage) NR/A 516,330
1,000,000 California HFA Secured Revenue Series 1991, 6.65% due 9/1/01
(Good Samaritan Hospital Project) A/A- 1,074,910
505,000 California HFA Financing Authority, 5.25%
due 8/1/00 (Marin General Hospital
Project; Insured: FSA) Aaa/AAA 527,760
1,090,000 California Public Capital Improvement Finance Auth.
Rev. Series 1988-E, 8.25% due 3/1/98 Baa/NR 1,170,780
1,000,000 California State General Obligation, 6.50%
due 10/1/99 A1/A 1,083,760
232,713 California State Veterans General Obligation Bonds
Amortizing Coupon M-COATES,7.30% due 10/1/01 *Aaa/AAA* 253,839
1,000,000 California Veterans Affairs Home Purchase Revenue Series A,
7.40% due 8/1/97 Aa/A+ 1,049,270
250,000 California Veterans Affairs Home Purchase Revenue Series A,
7.50% due 8/1/98 Aa/A+ 269,325
1,390,000 California Veterans Affairs Home Purchase Revenue Series A,
6.55% due 8/1/01 Aa/A+ 1,462,183
1,000,000 California State Public Works Board Lease Revenue Regents
of University of California Series 1993-B,
4.625% due 6/1/00 A1/A- 1,006,520
850,000 California State University Revenue,
6.40% due 11/1/02 A1/A- 931,107
825,000 California Statewide Community Development Authority
Insured Health Facilities Revenue Certificate of
Participation Series 1992, 6.40% due 5/1/02 (Eskaton
Properties Incorporated Phase II Project) NR/A 868,717
1,000,000 California Statewide Community Development Authority
Certificate of Participation, .58%(inverse floater)
due 1/1/00 (Motion Picture and Television Fund Project;
Insured: AMBAC) Aaa/AAA 946,820
1,000,000 California Statewide Community Development Authority
Certificate of Participation, .87%(inverse floater)
due 1/1/01 (Motion Picture and Television Fund Project;
Insured: AMBAC) Aaa/AAA 930,140
130,000 Cerritos-Compton Glendale College District General
Obligation Certificate of Participation,
8.00% due 2/1/98 NR/NR 138,593
1,925,000 Chula Vista Variable Rate Multifamily Housing Refunding
Revenue Series 1985, 5.75% due 11/1/07,
put 11/1/97 (Eucalyptus Grove Project; Contintal
Casualty Surety Bond) NR/A+ 1,943,673
250,000 Clovis & Fresno Unified School District Certificate
of Participation Series A, 6.70% due 5/1/97NR/A 254,217
660,000 Cupertino Public Facilities Corporation Certificate of
Participation Series 1992-B, 5.60% due 7/1/00A1/A+ 690,954
2,000,000 Desert Sands Unified School District Certificate of
Participation Measure O Series C, 4.50%
due 3/1/99 A/NR 1,982,420
60,000 El Paso de Robles Newark Water District Certificate of
Participation Association of Bay Area Governments Finance
Corporation, 7.40% due 6/1/98 NR/NR 60,900
350,000 Foothill-De Anza Community College District Certificate of
Participation, 7.35% due 3/1/07 NR/A- 396,347
240,000 Franklin McKinley School District Refunding Certificate of
Participation Series 1993, 5.80% due 5/1/01 Baa1/NR 245,234
600,000 Fresno Multifamily Housing Revenue Refunding, 5.10%
due 10/1/05, put 4/1/99 (Maple Leaf Project;
Insured: Continental Insurance) NR/A- 600,840
560,000 Fruitvale School District Certificate of Participation,
7.60% due 6/1/99 Baa/NR 610,204
140,000 Garden Grove Community Development, 7.25% due 6/1/96
(Escrowed to Maturity) NR/AAA 142,209
2,000,000 Glendale Hospital Revenue Refunding Series 1994, 7.625%
due 1/1/05 (Verdugo Hills Project;
LOC: Industrial Indemnity) NR/A+ 2,185,760
200,000 Hayward Unified School District Certificate of
Participation, 7.60% due 10/1/00 Baa/NR 213,506
200,000 Hermosa Beach Lynwood and Vernon Certificate of
Participation, 7.10% due 9/1/99,
partially pre-refunded NR/BBB 210,968
2,895,000 Huntington Beach City School District 1995 Capital
Certfificates, 6.25% due 4/1/97 NR/NR 2,905,364
800,000 Industry Industrial Revenue Refunding, 7.00% due 12/1/00,
put 12/1/99 (Camco Chemical Project;
LOC: Provident Bank) *A/A* 799,936
605,000 Inglewood Certificate of Participation, 6.70% due 8/1/00
(Civic Center Improvement Project) A/BBB 651,809
635,000 Inglewood Certificate of Participation, 6.80% due 8/1/01
(Civic Center Improvement Project) A/BBB 690,613
690,000 Inglewood Certificate of Participation, 6.90% due 8/1/02
(Civic Center Improvement Project) A/BBB 736,078
360,000 Irvine Ranch Water District Joint Powers Agency Revenue,
7.00% due 2/15/98 NR/A+ 370,382
480,000 Lake Elsinore Public Financing Authority Tax Allocation
Revenue Series 1992-C, 6.15% due 2/1/01
(Insured: FGIC) Aaa/AAA 518,131
2,000,000 Lancaster Redevelopment Agency Lease Revenue Series 1995,
4.90% due 12/1/00 (Public Improvement Project;
LOC: Sumitomo - Dai Ichi Kangyo) NR/SP1 1,982,700
1,500,000 Los Angeles Equipment Acquisition Program L
Certificate of Participation,
5.80% due 12/1/98 A/A+ 1,554,030
1,000,000 Los Angeles Municipal Improvement Corporation Lease
Revenue, 5.00% due 2/1/00 A/A+ 1,011,810
1,500,000 Los Angeles Unified School District Certificate of
Participation, 6.30% due 6/1/02 A/A- 1,625,610
1,000,000 Los Angeles County Certificate of Participation
Mobile Digital Comm., 7.70% due 7/15/01 Baa1/BBB+ 1,017,110
350,000 Los Angeles County Housing Authority MFHR, 7.625%
due 12/1/29, mandatory put 12/1/99 (Monrovia Project A;
Insured: Continental Casualty) NR/A- 357,479
1,245,000 Los Angeles County Pension Obligation Certificate of
Participation, 6.875% due 6/30/07,
refunding pending 6/30/96 Baa1/BBB+ 1,285,973
1,000,000 Los Angeles County Transit Finance Corporation Certificate of
Participation Series 1992-B, 5.70% due 7/1/99A1/A+ 1,042,790
100,000 Los Angeles County Compton Civic Center Courthouse Facility
Revenue, 7.75% due 10/1/96 Baa1/A 100,475
250,000 Lynwood Unified School District Certificate of Participation,
7.20% due 11/1/98
(Capital Improvement Project) Baa/NR 260,483
2,000,000 MSR Public Power Agency Series 1987 C, 6.70% due 7/1/02
(San Juan Project) A/A 2,080,300
200,000 Midpeninsula Regional Open Space District Certificate of
Participation, 7.20% due 9/1/00,
refunded 9/1/99 *Aaa/A 224,514
360,000 Midpeninsula Regional Open Space District Certificate of
Participation, 4.75% due 9/1/99 NR/A 365,796
460,000 Midpeninsula Regional Open Space District Certificate of
Participation, 4.80% due 9/1/00 NR/A 468,055
1,230,000 Morgan Hill Unified School District Certificate of
Participation Series 1993, 4.70% due 8/1/98 A1/NR 1,245,191
1,000,000 Morgan Hill Unified School District Certificate of
Participation Series 1993, 4.80% due 8/1/99 A1/NR 1,016,760
835,000 Morgan Hill Unified School District Certificate of
Participation Series 1993, 5.00% due 8/1/00 A1/NR 855,583
630,000 Mountain View Shoreline Reg. Park Community Tax Allocation
Series 1993-A, 4.50% due 8/1/98 A/A 628,457
660,000 Mountain View Shoreline Reg. Park Community Tax Allocation
Series 1993-A, 4.70% due 8/1/99 A/A 654,608
810,000 National City Community Development Commission Tax Allocation
Series 1992-A, 5.70% due 8/1/99 (Downtown Redevelopment
Project; Insured: AMBAC) Aaa/AAA 853,918
500,000 National City Community Development Commission Tax Allocation
Series 1992-A, 5.90% due 8/1/00 (Downtown Redevelopment
Project; Insured: AMBAC) Aaa/AAA 535,985
330,000 New Haven Unified School District Certificate of Participation,
7.30% due 12/1/01 NR/A- 355,951
355,000 New Haven Unified School District Certificate of Participation,
7.30% due 12/1/02 NR/A- 381,994
380,000 New Haven Unified School District Certificate of Participation,
7.40% due 12/1/03 NR/A- 408,485
410,000 New Haven Unified School District Certificate of Participation,
7.40% due 12/1/04 NR/A- 439,577
940,000 Ontario Individual Development Revenue Series 1990-A,
7.75% due 9/1/20, put 8/31/00 (Great Western Foam Project;
LOC: Wells Fargo Bank) NR/A 964,036
1,100,000 Orange County Refunding Recovery, 5.10% due 6/1/02
Insured: MBIA) Aaa/AAA 1,134,441
1,000,000 Orange County Refunding Recovery, 5.20% due 6/1/03
(Insured: MBIA) Aaa/AAA 1,033,520
2,000,000 Orange County Refunding Recovery, 6.50% due 6/1/04
(Insured: MBIA) Aaa/AAA 2,239,060
375,000 Orange County Subordinate Airport Revenue Certificate of
Participation, 7.70% due 7/1/98 (1990 Loading Bridge and
Baggage Handling Project) NR/NR 380,603
900,000 Orange County Local Transportation Authority Sales Tax Rev.,
5.50% due 2/15/01 (Measure M
Sales Tax Project) Aa/AA 933,246
1,000,000 Orange County Local Transportation Authority Sales Tax Revenue
2nd Series, .62% (inverse floater) due 2/15/99
(Insured: FGIC) Aaa/AAA 948,020
1,425,000 Oxnard Harbor District Refunding Revenue, 6.60% due 8/1/00
(Capital Guaranty) Aaa/AAA 1,561,914
300,000 Oxnard IDA IDRB, 9.50% due 10/1/97 (Green Foods Project;
LOC: Mitsubishi Bank Ltd.) Aa3/NR 307,104
100,000 Perris School District Certificate of Participation, 5.10%
due 3/1/00 (Insured: FSA) Aaa/AAA 103,561
1,000,000 Redwood City Multifamily Housing Revenue Series 1985-B,
5.20% due 10/1/08, put 10/1/00 (Redwood Shores Apartments
Project; Insured: Continental Casualty) NR/A+ 1,006,690
150,000 Riverside Certificate of Participation, 8.00%
due 10/1/96 Baa1/A- 154,372
100,000 Riverside County Housing Authority Revenue Series A, 7.50%
due 10/1/96 Baa/NR 101,111
465,000 Riverside County Housing Authority Revenue Series A, 7.75%
due 10/1/00 Baa/NR 478,978
295,000 Sacramento Financing Authority Series 1991, 6.30%
due 11/1/02 A1/A+ 323,757
550,000 Sacramento Municipal Utility District Electric Refunding
Revenue Series R, 6.60% due 2/1/97 A/A- 566,896
1,000,000 Sacramento Regional Transportation Authority Certificate of
Participation, 6.00% due 3/1/99 A1/NR 1,048,810
1,000,000 Sacramento Regional Transportation Authority Certificate of
Participation, 6.25% due 3/1/01 A1/NR 1,078,440
1,700,000 Sacramento Unified School District Certificate of
Participation, 4.60% due 2/1/19, put 8/1/96 NR/NR 1,705,814
960,000 Sacramento MFHR, 5.875% due 2/1/08, put 2/1/03 (Fairways I
Apartments Project;Insured: FNMA) NR/AAA 975,485
500,000 San Diego Open Space Park Facilities,
8.00% due 1/1/96 Aaa/AA+ 500,120
2,000,000 San Diego Unified School District Public School Building
Corporation Certificate of Participation Series 1993-B,
4.40% due 7/1/99 Aa/AA- 2,021,360
450,000 San Diego County Regional Trans. Community Sales Tax Rev.
Series A, 6.125% due 4/1/98
(Escrowed to Maturity) AAA/AA- 471,186
250,000 San Francisco City & County Agency Refunding Series Sec 8,
6.125% due 7/1/02 (Insured: MBIA / FHA) Aaa/AAA 250,560
700,000 San Francisco Unified School District Certificate of
Participation, 8.10% due 7/1/98, pre-refunded 7/1/96 @ 102
(Civic Improvement Project) A/AAA* 729,386
590,000 San Jacinto IDA IDRB Series 1990, 7.20% due 6/1/98
(Edelbrock Foundry Corporation Project;
LOC: Bank of America) NR/AA- 633,855
2,000,000 San Joaquin County Certificate of Participation, 5.25%
due 9/1/98 (General Hospital Project) A/A- 2,019,680
1,440,000 San Joaquin County Certificate of Participation, 5.60%
due 9/1/00 (General Hospital Project) A/A- 1,454,587
895,000 San Joaquin County Certificate of Participation, 5.90%
due 9/1/03 (General Hospital Project) A/A- 900,397
1,310,000 San Marcos Public Facility Authority Capital Improvement
Series 1991, 0% due 1/1/99, ETM Aaa/NR 1,116,801
410,000 San Marcos Public Facility Authority Capital Improvement Series
1991, 0% due 1/1/00, ETM Aaa/NR 330,169
1,305,000 San Marcos Public Facility Authority Capital Improvement
Series 1991, 0% due 7/1/00, ETM Aaa/NR 1,022,872
500,000 Santa Ana Community Red. Agency Tax Allocation Series 1989-B,
7.10% due 9/1/98 NR/BBB+ 517,820
500,000 Santa Cruz County Public Financing Authority Revenue
Series C, 7.00% due 8/1/96
(Escrowed to Maturity) NR/AAA 509,205
315,000 Santa Monica Community College District Certificate of
Participation, 7.65% due 5/1/01, put 11/1/97
(Rancho Corrales Project) NR/A 329,106
810,000 Sonoma County Certificate of Participation Public Works
Improvement Program, 5.40% due 8/1/00
(Integrated Waste Project) NR/A+ 849,463
950,000 Sonoma County Certificate of Participation Public Works
Improvement Program, 5.80% due 8/1/03
(Integrated Waste Project) NR/A+ 997,718
150,000 South Coast Air Quality Management District Building
Corporation Installment Sale Revenue, 9.75% due 8/1/98
(Escrowed to Maturity) Aaa/AAA 171,169
2,500,000 South Coast Local Education Agencies Pooled Tax & Revenue
Anticipation Notes Series 1995-A,
5.00% due 8/14/96 NR/SP1+ 2,514,900
700,000 Stanislaus Waste to Energy Finance Agency Solid Waste
Facility Revenue Certificate, 7.20% due 1/1/97
(Ogden Martin Systems Project) NR/BBB+ 716,919
250,000 Stanislaus Waste to Energy Finance Agency Solid Waste
Facility Revenue Certificate, 7.30% due 1/1/98
(Ogden Martin Systems Project) NR/BBB+ 261,765
340,000 Suisun City Redevelopment Agency 1990 Tax Allocation,
7.20% due 10/1/01, pre-refunded 4/1/00 *Aaa/A- 383,190
500,000 Sulphur Springs Union School District General Obligation Series
B, 5.70% due 3/1/01 A/NR 531,595
450,000 Sunline Transit Agency Certificate of Participation
California Transit Finance Corporation Series A,
5.50% due 7/1/02 A/NR 470,488
900,000 Sweetwater Union High School District Certificate of
Participation, 6.40% due 11/1/01 Baa1/BBB+ 965,214
190,000 Temecula Community Services Certificate of Participation
Series 1992, 6.00% due 10/1/98 (Community Recreation
Center Project) NR/A 198,495
200,000 Temecula Community Services Certificate of Participation
Series 1992, 6.00% due 10/1/99 (Community Recreation
Center Project) NR/A 211,022
210,000 Temecula Community Services Certificate of Participation
Series 1992, 6.00% due 10/1/00 (Community Recreation
Center Project) NR/A 223,518
255,000 Torrance Unified School District Certificate of
Participation, 6.10% due 10/1/00 Baa1/NR 261,403
275,000 Trinity County Public Utilities District Certificate of
Participation, 5.25% due 4/1/98 NR/BBB- 273,248
290,000 Trinity County Public Utilities District Certificate of
Participation, 5.50% due 4/1/99 NR/BBB- 286,749
750,000 Turlock Irrigation District Certificate of Participation,
6.80% due 1/1/00 (1991 Capital
Improvements Project) Baa1/A- 796,687
365,000 Turlock Irrigation District Certificate of Participation,
7.00% due 1/1/01 (1991 Capital
Improvements Project) Baa1/A- 387,842
420,000 Turlock Irrigation District Certificate of Participation,
7.15% due 1/1/03 (1991 Capital
Improvements Project) Baa1/A- 445,523
635,000 University of California Research Facilities Revenue,
11.00% due 9/1/98 NR/A- 744,404
870,000 University of California Research Facilities Revenue, 5.25%
due 9/1/02 NR/A- 896,570
625,000 Vallejo Public Financing Authority Local Agency Revenue
Series A, 5.00% due 9/2/98 NR/A- 633,537
500,000 West Covina Certificate of Participation, 5.90% due 9/1/96
(Civic Center Complex Project) NR/A 507,875
495,000 Yorba Linda Public Financing Authority Certificate of
Participation, 7.00% due 11/1/00
(Recycling Equipment Project) A/NR 524,616
1,000,000 Yuba City Public Financing Authority Series 1991,
7.25% due 12/1/96 NR/NR 1,007,530
TOTAL INVESTMENTS (Cost $97,171,442) $ 99,741,793
* Indicates rating on other debt issued by the same issuer, rather than on the
security held by the Fund. These securities are deemed by the Adviser to be
comparable with those of issuers having debt ratings in the 4 highest grades by
Moody's or S&P.
+Credit ratings are unaudited.
See notes to financial statements.
