Dear Fellow Shareholder:
The fiscal year ending September 30, 1995 continued a period of change in the
bond market. After rising to their highest levels in several years last
November, interest rates fell steadily throughout 1995. The net asset value
of the A shares of Thornburg New Mexico Intermediate Municipal Fund increased
40 cents per share to $13.12 over the year. If you were with us for the
entire period, you received dividends of 60.4 cents per share. If you
reinvest your dividends, you received 61.7 cents per share. For the year ended
September 30, investors who owned C shares received dividends of 51.9 and 52.9
cents per share, respectively.
Your fund is a managed bond portfolio. Its performance over the last year is
a total of all the stories of the individual bonds in your portfolio plus a
few that we traded during the period. One typical story pertains to our
investment in $1,000,000 of the FGIC insured Farmington Utility System
Revenue 5.40% bonds due 5/15/2002.
The graph on this page compares the price change of Thornburg New Mexico
Intermediate Municipal Fund with the price change in the Farmington Utilities
bond. Recall from my last letter to you that on December 31, 1993 this bond
was worth 106.215% of its $1 million maturity amount at a then market yield
of 4.50%. By September 30, 1994 an increase in its market yield to 5.55%
decreased the price of the bond to 99.07% of its maturity value. On
September 30, 1995, the Farmington bond was valued at 103.3% of its
maturity amount at a market yield of 4.81%. The taxable equivalent yield to
maturity on the bond at this poiont for a 36% bracket federal taxpayer (8.5%
state rate) was approximately 8.21%. In general, the price volatility of
your Fund was less than that of the single Farmington bond.
Nothing has happened in the last several years of fluctuating interest rates
to change the ultimate maturity value of this bond or other bonds you own
through your investment in this fund. What has changed? The interim market
prices of these bonds moved lower through most of 1994, before recovering
this year. As you evaluate your investment in Thornburg New Mexico
Intermediate Municipal Fund, you must consider the future prospects of the
kinds of bonds you own in this portfolio.
Today, your portfolio includes approximately 150 bonds from around the state
and 3 U.S. territories, approximately 88% of which are rated A or better by
one of the major rating agencies. Your bond portfolio in Thornburg New Mexico
Intermediate Municipal Fund is laddered to give a dollar weighted average
maturity of approximately 6.8 years. This is shorter than the 10 year
maximum average maturity permitted for your fund.
On September 22, The Wall Street Journal reported that the public prefers a
graduated income tax to a flat tax by 57% to 38% according to recent research
polls. I'm not surprised, since the top 10% of income earning households in
the U.S. pay around 60% of all individual income taxes collected. If you
belong to the fortunate minority of high bracket taxpayers, ask yourself: Are
taxes on my investment income likely to go down?
Many municipal bonds issued between 1983 and 1988 are being paid off early.
Money to pay off these bonds prior to maturity has already been raised. You
may own municipal bonds or unit trusts which are being redeemed. Please
remember that you can easily maintain your municipal portfolio by authorizing
a simple, automatic transfer from your checking account to Thornburg New
Mexico Intermediate Municipal Fund.
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 bond
you own in this fund look attractive to me. Thank you for investing in
Thornburg New Mexico Intermediate Municipal Fund.
Sincerely,
Brian J. McMahon
Managing Director
Thornburg New Mexico Intermediate Municipal Fund
September 30, 1995
ASSETS
Investments, at value (cost $ 128,127,669) $ 133,256,365
Cash 368,079
Receivable for fund shares sold 42,806
Receivable for securities sold 1,579,989
Interest receivable 2,268,814
Prepaid expenses and other assets 6,220
TOTAL ASSETS 137,522,273
LIABILITIES
Dividends payable 170,637
Payable for fund shares redeemed 250,582
Accounts payable and accrued expenses 153,331
Accounts payable investment adviser 64,521
TOTAL LIABILITIES 639,071
NET ASSETS $ 136,883,202
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($ 136,742,097 applicable to 10,420,504 shares of
beneficial interest outstanding) $ 13.12
Maximum sales charge, 3.50% of offering
price (3.63% of net asset value per share) .48
Maximum Offering Price Per Share $ 13.60
Class C Shares:
Net asset value, offering and redemption price per share
($ 141,105 applicable to 10,757 shares of
beneficial interest outstanding) $ 13.12
See notes to financial statements.
Thornburg New Mexico Intermediate Municipal Fund
Year Ended September 30, 1995
INVESTMENT INCOME
Interest income (net of premium amortized
of $ 539,969) $ 7,898,965
EXPENSES
Investment advisory fees (Note 3) 865,405
Distribution and service fees (Note 3)
Class A Shares 332,809
Class B Shares 3,612
Class C Shares 793
Transfer agent fees 129,717
Custodian fees 92,729
Professional fees 38,119
Registration and filing fees 5,190
Other expenses 21,160
TOTAL EXPENSE 1,489,534
Less:
Investment advisory fee waived by
investment adviser (Note 3) (76,438)
Expenses assumed by investment adviser (Note 3) (25,198)
NET EXPENSES 1,387,898
NET INVESTMENT INCOME 6,511,067
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments sold (543,396)
Increase in unrealized appreciation of investments 4,633,144
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 4,089,748
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 10,600,815
See notes to financial statements.
Thornburg New Mexico Intermediate Municipal Fund
Year Ended Year Ended
September 30, 1995 September 30, 1994
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $ 6,511,067 $ 6,371,139
Net realized gain (loss)
on investments sold (543,396) (147,545)
Unrealized appreciation
(depreciation) of investments 4,633,144 (6,660,214)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS 10,600,815 (436,620)
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (6,490,487) (6,370,950)
Class B Shares (17,017) (71)
Class C Shares (3,563) (118)
From realized gains
Class A Shares --- (82,174)
FUND SHARE TRANSACTIONS - (Note 4)
Class A Shares (11,243,065) 22,208,876
Class B Shares (92,064) 81,185
Class C Shares 78,705 60,217
NET INCREASE (DECREASE) IN NET ASSETS (7,166,676) 15,460,345
NET ASSETS:
Beginning of year 144,049,878 128,589,533
End of year $ 136,883,202 $ 144,049,878
See notes to financial statements.
Thornburg New Mexico Intermediate Municipal Fund
Note 1 - ORGANIZATION
Thornburg New Mexico Intermediate Municipal Fund (the "Fund"), is a series of
Thornburg Investment Trust (the "Trust", formerly known as Thornburg Income
Trust). The Trust is organized as a Massachusetts business trust under a
Declaration of Trust dated June 3, 1987 and is registered as a diversified,
open-end management investment company under the Investment Company Act of
1940, as amended. The Trust is currently issuing five classes of shares of
beneficial interest in addition to those of the Fund: Thornburg Florida
Intermediate Municipal Fund, Thornburg Intermediate Municipal Fund, Thornburg
Limited Term U.S. Government Fund, Thornburg Limited Term Income Fund and
Thornburg Value Fund. Each series is considered to be a seperate entity for
financial reporting and tax purposes.
On September 1, 1994 the Funds 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 Fund 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 share 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, (iii) Class C shares are sold at net asset value without a
sales charge at the time of purchase, but are subject to 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
Fund are limited to disribution fees and minor 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 Fund utilizes
an independent pricing service approved by the Trustees. 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 sservice 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 Fund are reviewed by the officers of the
Fund under tthe general supervision of the Trusstees. Short-term obligations
having remaining matturities of 60 days or less are valued at amortized cost,
which approximates market value.
Thornburg New Mexico Intermediate Municipal Fund
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 Fund for the year ended September 30, 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 Fund may engage in
when-issued or delayed delivery transactions. To the extent the Fund
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 Fund 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 Fund of an amount sufficient to make payment for the portfolio securities
to be purchased will be segregated on the Fund's records on the trade date.
Securities to be purchased will be segregated on the Fund'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 Fund is declared daily as a
dividend on shares for which the Fund has received payment. Dividends are
paid monthly and are reinvested in additional shares of the Fund 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 over the life of the respective
securities. Realized gains and losses from the sale of securities are
recorded on an identified cost basis.
Deferred Expenses: Organizational expenses were deferred and are being
amortized on a straight-line basis over a 60-month period.
Thornburg New Mexico Intermediate Municipal Fund
Note 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to the investment advisory agreement, Thornburg Management Company,
Inc. (the "Adviser") provides investment management and advisory services
for which fees are computed at the rate of five eighths of one percent per
annum of the average daily net assets of the Fund. As of September 1, 1994,
the advisory agreement was modified to provide for a sliding scale fee that
declines from 5/8 of 1% to 4/10 of 1% when the Fund's average net assets
exceed $500 million. The investment advisory agreement provide that if, with
respect to any fiscal year of the Fund, its total operating expenses
(including investment advisory fees, but excluding interest, taxes,
brokerage commissions, and extraordinary expenses) exceed the most
restrictive of the expense limitations imposed by state securities
commissions of the states in which the Fund currently has registered its
securities for sale, the investment advisory fees for that fiscal year will
be reduced or the Adviser will assume certain Fund expenses by the amount
of such excess. For the year ended September 30, 1995, the Adviser
voluntarily waived a portion of its advisory fee amounting to $76,438 and
assumed certain operating expensses amounting to $ 25,198.
The Fund has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Fund shares. For the
year ended September 30, 1995, the Distributor earned commissions
aggregating $ 24,533 from the sale of Class A shares, and collected
contingent deferred sales charges aggregating $ 860 from redemptions of
Class B shares of the Fund.
Pursuant to a Service Plan, under Rule 12b-1 of the Investment Company Act
of 1940, the Fund may reimburse to the Adviser an amount not to exceed .25
of 1% per annum of the Fund's average net assets 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 Fund's shares.
The Fund has also adopted a Distribution Plan pursuant to Rule 12b-1,
applicable only to the Fund's Class B and Class C shares under which the
Fund can 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 compensates 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 Fund under
their respective Service and Distribution Plans for the year ended September
30, 1995, are set forth in the statement of operations.
Certain officers and trustees of the Fund are also officers and/or directors
of the Adviser and Distributor.
Thornburg New Mexicio Intermediate Municipal Fund
Note 4 - SHARES OF BENEFICIAL INTEREST:
At September 30, 1995, there were an unlimited number of shares of
beneficial interest authorized, and capital paid-in aggregated $ 132,490,347.
Transactions in shares of beneficial interest were as follows:
Year Ended Year Ended
September 30, 1995 September 30, 1994
Class A Shares Shares Amount Shares Amount
Shares sold 1,915,028 $ 24,612,469 3,038,051 $ 39,848,037
Shares issued to shareholders
in reinvestment of
distributions 327,061 4,196,897 318,424 4,140,717
Shares repurchased (3,134,511) (40,052,431) (1,669,736) (21,779,878)
Net Increase (Decrease) (892,422)($ 11,243,065) 1,686,739 $ 22,208,876
Class B Shares
Shares sold 69,495 $ 899,489 6,336 $ 81,114
Shares issued to shareholders
in reinvestment of
distributions 563 7,227 5 71
Shares repurchased (76,399) (998,782) 0 0
Net Increase (6,341) ($ 92,064) 6,341 $ 81,185
Class C Shares
Shares sold 5,853 75,792 4,671 $ 60,114
Shares issued to shareholders
in reinvestment of
distributions 256 3,316 8 103
Shares repurchased (31) (403) 0 0
Net Increase 6,078 $ 78,705 4,679 $ 60,217
Note 5 - SECURITIES TRANSACTIONS
For the year ended September 30, 1995, the Fund had purchase and sale
transactions (excluding short-term securities) of $ 23,319,481 and
$ 34,868,249, respectively.
The cost of investments for Federal income tax purposes is $ 128,164,756. At
September 30, 1995, net unrealized appreciation of investments was
$ 5,091,609, resulting from $ 5,306,680 gross unrealized appreciation and
$ 215,071 gross unrealized depreciation.
Accumulated net realized losses from securities transactions included in net
assets at September 30, 1995 aggregated $ 735,841.
For tax purposes, the Fund has realized capital loss carryforwards of
$ 735,841 as of September 30, 1995 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:
September 30, 2002 - $192,445 and September 30, 2003 - $ 543,396.
Thornburg New Mexico Intermediate Municipal Fund
Per share operating performance Year Ended Period from
(for a share outstanding September 30, June 21, 1991 (a)
throughout the period) Sept. 30,
1995 1994 1993 1992 1991
Class of Shares: A B** C A B* C* A A A
Net asset value,
beginning of
period $12.72 $12.72 $12.71 $13.36 $12.87 $12.87 $12.64 $12.21 $12.06
Income from investment operations:
Net investment
income .60 .52 .52 .60 .05 .04 .65 .74 .23
Net realized
and unrealized
gain (loss)
on investments .40 .37 .41 (.63) (.15) (.16) .72 .43 .15
Total from
investment
operations 1.00 .89 .93 (.03) (.10) (.12) 1.37 1.17 .38
Less distributions from:
Net investment
income (.60) (.52) (.52) (.60) (.05) (.04) (.65) (.74) (.23)
Realized
capital gains -- -- -- (.01) -- -- -- -- --
Change in net
asset value .40 .37 .41 (.64) (.15) (.16) .72 .43 .15
Net asset
value, end
of period $13.12 $13.09 $13.12 $12.72 $12.72 $12.71 $13.36 $12.64 $12.21
Total
return (b) 8.10% 7.42% 7.48% (.26%) (.80%) (.90%) 10.96% 9.98% 3.18%
Ratios/Supplemental Data
Ratios to average net assets:
Net investment
income 4.71% 4.06% 4.05% 4.58% 3.47%(c) 3.49%(c) 4.95% 5.76% 6.57%(c)
Expenses,
after
expense
reductions 1.00% 1.64% 1.66% .90% 1.71%(c) 1.74%(c) .61% .42% .25%(c)
Expenses,
before
expense
reductions 1.06% 4.71% 15.86% 1.04% 10.90%(c) 21.92%(c) 1.01% 1.12% 1.32%(c)
Portfolio
turnover rate 17.06% 17.06% 17.06% 6.87% 6.87% 6.87% 10.33% 32.15% 49.67%
Net assets
at end of
period (000) $136,742 $0 $141 $143,910 $81 $59 $128,590 $71,034 $20,511
(a) Commencement of operations.
(b) Sales loads are not reflected in computing total return, which is not
annualized for periods less than one year.
(c) Annualized.
* Sales of Class B and Class C shares commenced on September 1, 1994.
** On September 28, 1995, all Class B shares were converted into Class A
shares.
Thornburg New Mexico Intermediate Municipal Fund
September 30, 1995 CUSIPS: Class A - 885-215-301, Class C - 885-215-814
NASDAQ Symbols: Class A - THNMX
Principal Credit Rating
Amount Issuer-Description Moody's/S&P Value
$575,000 Albuquerque Government Purpose Airport Revenue
Series 1987-A, 8.30% due 7/1/96 A1/A $593,768
225,000 Albuquerque Airport Revenue Series B,
8.40% due 7/1/00 A1/A+ 241,470
420,000 Albuquerque Mortgage Obligation Revenue
Series B-2, 0% due 5/15/11 (Insured: FGIC) Aaa/AAA 134,480
50,000 Albuquerque Gross Receipts Tax Revenue,
6.20% due 7/1/05 Aaa/AAA 53,512
1,280,000 Albuquerque Gross Receipts and Lodger's
Tax, 0% due 7/1/02 (Insured: FSA) Aaa/AAA 912,667
1,520,000 Albuquerque Gross Receipts and Lodger's
Tax, 0% due 7/1/03 (Insured: FSA) Aaa/AAA 1,023,872
2,035,000 Albuquerque Gross Receipts and Lodger's
Tax, 0% due 7/1/05 (Insured: FSA) Aaa/AAA 1,214,651
2,000,000 Albuquerque Gross Receipts and Lodger's
Tax ,0% due 7/1/12 (Insured: FSA) Aaa/AAA 724,840
155,000 Albuquerque Hospital Revenue, 7.20%
due 7/1/97 (Escrowed to Maturity) Aaa/AAA 162,266
1,000,000 Albuquerque Hospital Revenue Series
1991-A, 6.375% due 5/15/04 (St. Joseph's Health
Care Project; Insured: MBIA) Aaa/AAA 1,086,940
2,000,000 Albuquerque Hospital Revenue Series 1992,
5.60% due 8/1/99 (Insured: MBIA) Aaa/AAA 2,076,600
335,000 Albuquerque Hospital Revenue Series A, 5.80%
due 8/1/00 (Presbyterian Health Care
Project; Insured: MBIA) Aaa/AAA 351,867
2,500,000 Albuquerque Hospital System Refunding
Revenue Series 1992-A, 6.10% due 8/1/02
(Presbyterian Health Care
Project; Insured: MBIA) Aaa/AAA 2,685,850
1,040,000 Albuquerque Hospital System Refunding
Revenue Series 1992-B, 6.20% due 8/1/02
(Presbyterian Health Care
Project; Insured: MBIA) Aaa/AAA 1,084,117
1,775,000 Albuquerque Hospital System Refunding
Revenue Series 1992-B, 6.60% due 8/1/07
(Presbyterian Health Care
Project; Insured: MBIA) Aaa/AAA 1,871,329
1,500,000 Albuquerque Hospital System Refunding
Revenue Series 1993-B, 4.50% due 8/1/99
(Presbyterian Health Care
Project; Insured: MBIA) Aaa/AAA 1,500,435
1,000,000 Albuquerque Water and Sewer System
Revenue Refunding Series B, 6.95% due 7/1/02 A1/AA 1,109,920
1,500,000 Albuquerque Water and Sewer Revenue, 7.00%
due 7/1/03 A1/AA 1,662,615
1,000,000 Albuquerque Water and Sewer Revenue, 6.70%
due 7/1/98 A1/AA 1,058,450
1,750,000 Albuquerque Water and Sewer Revenue Series
1990-C, 7.00% due 7/1/05 NR/AA 1,929,462
600,000 Albuquerque Water and Sewer Revenue, 6.25%
due 7/1/08 A1/AA 636,858
1,240,000 Albuquerque MFHR Series 1991, 8.50%
due 7/1/21, put 7/1/01 (Beach Apartments Project) NR/NR 1,272,476
3,475,000 Albuquerque MFHR Series 1988, 5.00%
due 5/1/98 (Sunchase Apartments Project;
Collateralized: Home Federal) NR/AAA 3,454,880
3,030,000 Albuquerque MFHR Series 1994, 6.75% due 1/1/24,
put 1/1/04 (Dorado Village Project) NR/AAA 2,862,320
250,000 Albuquerque Refuse Removal and Disposal Rev.,
6.80% due 7/1/98 (Insured: AMBAC) Aaa/AAA 265,255
240,000 Albuquerque Revenue Refunding Bonds Series 1993,
4.25% due 6/1/97 (Evangelical Lutheran Good
Samaritan Society Project; Insured: Capital
Guaranty) Aaa/AAA 240,370
250,000 Albuquerque Revenue Refunding Bonds Series 1993,
4.50% due 6/1/98 (Evangelical Lutheran Good
Samaritan Society Project; Insured: Capital
Guaranty) Aaa/AAA 251,360
290,000 Albuquerque Revenue Refunding Bonds Series 1993,
5.00% due 6/1/01 (Evangelical Lutheran Good
Samaritan Society Project; Insured: Capital
Guaranty) Aaa/AAA 295,565
305,000 Albuquerque Revenue Refunding Bonds Series 1993,
5.10% due 6/1/02 (Evangelical Lutheran Good
Samaritan Society Project; Insured: Capital
Guaranty) Aaa/AAA 311,719
170,000 Albuquerque Revenue Refunding Bonds Series 1993,
5.20% due 6/1/03 (Evangelical Lutheran Good
Samaritan Society Project; Insured: Capital
Guaranty) Aaa/AAA 174,309
1,000,000 Albuquerque Special Assessment District Series A,
6.45% due 1/1/15 (Cottonwood Mall Project;
LOC: Sumitomo Bank) NR/A+ 1,001,020
195,000 Albuquerque Special Assessment District No. 219
Series B, 5.50% due 7/1/00 (Water and Sewer
Improvement Project; LOC: Sumitomo Bank) NR/A 194,980
195,000 Albuquerque Special Assessment District No. 219
Series B, 5.65% due 7/1/01 (Water and Sewer
Improvement Project; LOC: Sumitomo Bank) NR/A 194,980
405,000 Albuquerque Special Assessment District No. 219
Series B, 5.75% due 7/1/02 (Water and Sewer
Improvement Project; LOC: Sumitomo Bank) NR/A 404,960
4,500,000 Bernalillo County Multifamily Housing Revenue
Series 1994-A, 6.50% due 10/1/19, put 10/1/06
(Village Apartments Project; Guarantee: AXA
Reinsurance Co.) NR/AA 4,537,665
500,000 Bloomfield Gross Receipts Tax Revenue Series
1992-B, 6.50% due 8/1/07 Baa/NR 510,875
1,750,000 Dona Ana County Gross Receipts Tax Refunding
and Improvement Series 1993, 5.875% due 6/1/09
(Insured: Asset Guaranty) NR/NR 1,801,187
330,000 Dona Ana County Subordinated Gross Receipts
Tax Revenue, 6.125% due 6/1/03 NR/NR 327,079
260,000 Dona Ana County Subordinated Gross Receipts
Tax Revenue, 6.25% due 6/1/04 NR/NR 257,826
510,000 Espanola Gross Receipts Tax Revenue, 7.10%
due 3/1/02 (Insured: MBIA) Aaa/AAA 548,066
550,000 Espanola Gross Receipts Tax Revenue, 7.20%
due 3/1/03 (Insured: MBIA) Aaa/AAA 592,306
525,000 Espanola Gross Receipts Tax Revenue, 6.25%
due 3/1/00 (Insured: MBIA) Aaa/AAA 548,368
750,000 Farmington Utility System Refunding Revenue,
5.20% due 5/15/00 (Insured: FGIC) Aaa/AAA 767,737
1,000,000 Farmington Utility System Refunding Revenue,
5.40% due 5/15/02 (Insured: FGIC) Aaa/AAA 1,033,070
1,500,000 Gallup Pollution Control Rev. Ref. Series
1992, 6.45% due 8/15/06 (Insured: MBIA) Aaa/AAA 1,638,240
500,000 Gallup Sales Tax Revenue Sinking Fund Bonds,
6.75% due 6/1/06 (Insured: MBIA) Aaa/AAA 543,840
1,000,000 Guam Ltd. Obligation Highway Series 1992-A,
5.50% due 5/1/99 (Insured: Capital Guaranty) NR/AAA 1,036,100
280,000 Hidalgo County Municipal School District of
Lordsburg, 6.875% due 7/1/00 NR/NR 290,321
300,000 Hidalgo County Municipal School District of
Lordsburg, 6.875% due 7/1/01 NR/NR 311,544
315,000 Hidalgo County Municipal School District of
Lordsburg, 6.875% due 7/1/02 NR/NR 327,074
3,300,000 Jicarilla Apache Tribe Tribal Refunding
Revenue Bonds, 7.75% due 7/1/05 NR/A 3,436,290
780,000 Las Cruces Gross Receipts Refunding Revenue,
4.35% due 12/1/95 A/A 780,374
1,175,000 Las Cruces Gross Receipts Refunding Revenue,
5.45% due 12/1/99 A/A 1,211,977
625,000 Las Cruces Gross Receipts Refunding Revenue,
5.85% due 12/1/01 A/A 659,300
1,500,000 Las Cruces Gross Receipts Refunding Revenue
Series 1992, 6.25% due 12/1/05 A/A 1,589,295
1,200,000 Las Cruces Joint Utility Refunding and
Improvement Revenue, 6.50% due 7/1/07 A1/NR 1,301,880
1,160,000 Las Cruces Municipal Sales Tax Revenue Series
1991, 6.50% due 12/1/03 A/NR 1,220,355
120,000 Lordsburg Gross Receipts and Lodgers Tax
Revenue, 8.125% due 12/1/97 NR/NR 129,384
230,000 Lordsburg Gross Receipts and Lodgers Tax
Revenue, 8.625% due 12/1/02 NR/NR 251,287
1,150,000 Lordsburg Pollution Control Revenue, 6.50%
due 4/1/13 (Phelps Dodge Project) A2/A- 1,189,491
500,000 Los Alamos County Utility System Revenue
Refunding Series A, 6.90% due 1/1/97 Baa1/BBB+ 515,985
750,000 Los Alamos County Utility System Revenue
Refunding Series 1986-A, 7.10% due 1/1/98 Baa1/BBB+ 789,930
2,445,000 Los Alamos County Utility System Revenue
Refunding Series A, 6.00% due 7/1/08
(Insured: FSA) Aaa/AAA 2,538,961
350,000 Milan General Obligation Sanitary Sewer
Series 1994, 7.00% due 9/1/13 NR/NR 369,183
3,275,000 New Mexico Educational Assistance Foundation
Revenue, 6.70% due 4/1/02 (Insured: AMBAC) Aaa/AAA 3,543,157
650,000 New Mexico Educational Assistance Foundation
Revenue, 6.20% due 12/1/01 Aaa/NR 691,990
815,000 New Mexico Educational Assistance Foundation
Revenue, 6.45% due 12/1/04 Aaa/NR 862,832
1,825,000 New Mexico Educational Assistance Foundation
Revenue, 6.85% due 12/1/05 A/NR 1,890,025
500,000 New Mexico Educational Assistance Foundation
Revenue, 4.70% due 12/1/98 A/NR 500,845
180,000 New Mexico Student Loan Revenue, 5.55%
due 12/1/01 A/NR 183,559
2,755,000 New Mexico Educational Assistance Foundation
Revenue, 6.65% due 3/1/07 Aaa/NR 2,901,318
990,000 New Mexico MFA MFHR Series 1991-C, 6.75%
due 7/1/11 NR/AAA 1,025,145
1,430,000 New Mexico MFA MFHR Series 1991-C, 6.75%
due 7/1/11 NR/AAA 1,480,765
90,000 New Mexico MFA SFMR Series A, 7.00%
due 7/1/14 A1/A+ 64,835
100,000 New Mexico MFA SFMR Series C, 7.80%
due 7/1/99 (Insured: FGIC) Aaa/AAA 104,897
95,000 New Mexico MFA SFMR Series A, 6.50%
due 3/1/98 AA-/NR 97,771
195,000 New Mexico MFA SFMR Series A-1, 5.30%
due 7/1/96 Aa/AA 196,812
715,000 New Mexico MFA SFMR Series A-1, 6.05%
due 1/1/00 Aa/AA 738,688
285,000 New Mexico MFA SFMR Series A-2, 6.20%
due 1/1/01 Aa/AA 296,468
720,000 New Mexico MFA SFMR Series 1992-A-1,
6.30% due 1/1/02 Aa/AA 752,386
5,555,000 New Mexico MFA SFMR Series 1992-A-1,
6.85% due 7/1/10 Aa/AA 5,849,082
1,185,000 New Mexico MFA SFMR Series 1992-A-1,
6.90% due 7/1/08 NR/AAA 1,261,705
1,375,000 New Mexico State Severance Tax Refunding
Series 1992-C, 5.30% due 7/1/97 Aa/AA 1,398,127
1,000,000 New Mexico State Severance Tax Refunding
Series 1992-C, 5.60% due 7/1/02 Aa/AA 1,027,030
1,195,000 New Mexico Equipment Loan Council Hospital
Revenue, 7.50% due 6/1/02 (San Juan
Regional Medical Center, Inc. Project) A/NR 1,328,254
1,490,000 New Mexico Equipment Loan Council Hospital
Revenue, 7.80% due 6/1/05, (San Juan
Regional Medical Center, Inc. Project) A/NR 1,682,225
225,000 New Mexico Equipment Loan Council Hospital
Revenue, 7.90% due 6/1/11 (San Juan
Regional Medical Center, Inc. Project) A/NR 251,600
575,000 New Mexico Equipment Loan Council Hospital
Revenue, 7.80% due 6/1/06 (San Juan
Regional Medical Center, Inc. Project) A/NR 642,591
245,000 New Mexico State University Revenue,
7.00% due 11/1/96 (Escrowed to Maturity) Aaa/AAA 253,112
310,000 New Mexico State University Revenue,
5.85% due 4/1/96 A1/AA 312,728
390,000 New Mexico State University Revenue,
5.85% due 4/1/99 A1/AA 406,895
380,000 New Mexico State University Revenue,
5.85% due 4/1/00 A1/AA 398,730
335,000 New Mexico State University Revenue,
5.85% due 4/1/01 A1/AA 353,325
1,050,000 Northern Mariana Islands Ports Authority
Airport Rev. Series 1987-B, 6.90%
due 10/1/01 A2/NR 1,079,085
555,000 Northern Mariana Islands Ports Authority
Airport Rev. Series 1987-B, 7.00%
due 10/1/02 A2/NR 570,407
750,000 Puerto Rico Public Improvement Revenue,
6.60% due 7/1/04 Baa1/A 846,795
1,300,000 Puerto Rico Highway and Transportation
Authority Highway Revenue, 5.70%
due 7/1/98 Baa1/A 1,346,371
2,000,000 Puerto Rico Highway and Transportation
Authority Highway Revenue, 5.00%
due 7/1/02 Baa1/A 2,018,080
2,000,000 Puerto Rico Public Building Authority
Revenue, 6.10% due 7/1/00 Baa1/A 2,122,260
905,000 Puerto Rico Electric Power Authority,
6.75% due 1/1/00 (LOC: Citibank) Baal/A 905,688
1,500,000 Puerto Rico Electric Power Revenue
Refunding Series 1992-Q, 5.70%
due 7/1/00 Baa1/A 1,567,020
100,000 Questa Independent School Dist.
#9 G.O. School Bldg. Series 7/1/86,
8.85% due 10/1/95 NR/NR 100,000
100,000 Questa Independent School Dist.
#9 G.O. School Bldg. Series 7/1/87,
8.50% due 10/1/00 NR/NR 111,574
110,000 Rio Grande Natural Gas Association
Natural Gas System Revenue, 4.70%
due 7/1/98 Baa1/BBB+ 110,020
150,000 Rio Grande Natural Gas Association
Natural Gas System Revenue, 5.00%
due 7/1/00 Baa1/BBB+ 150,302
1,000,000 Rio Rancho Water & Wastewater Series
1995 A, 6.50% due 5/15/06 (Insured: FSA) Aaa/AAA 1,103,320
1,000,000 San Juan County Gross Receipts /
Gasoline Tax Refunding Revenue Series
1994-B, 7.00% due 9/15/09 A/NR 1,077,980
115,000 Sandoval County Gross Receipts Tax
Refunding Revenue Series 1992, 7.00%
due 11/1/07 Baa1/NR 124,313
125,000 Sandoval County Gross Receipts Tax
Refunding Revenue Series 1992, 7.00%
due 11/1/08 Baa1/NR 133,379
135,000 Sandoval County Gross Receipts Tax
Refunding Revenue Series 1992, 7.00%
due 11/1/09 Baa1/NR 144,148
145,000 Sandoval County Gross Receipts Tax
Refunding Revenue Series 1992, 7.00%
due 11/1/10 Baa1/NR 154,094
340,000 Santa Fe County Office and Training
Facilities Project Revenue Series 1990,
9.00% due 7/1/01 (Escrowed to Maturity) NR/AAA 415,426
356,000 Santa Fe County Office and Training
Facilities Project Revenue Series 1990,
9.00% due 1/1/02 (Escrowed to Maturity) NR/AAA 438,962
372,000 Santa Fe County Office and Training
Facilities Project Revenue Series 1990,
9.00% due 7/1/02 (Escrowed to Maturity) NR/AAA 464,602
406,000 Santa Fe County Office and Training
Facilities Project Revenue Series 1990,
9.00% due 7/1/03 (Escrowed to Maturity) NR/AAA 517,102
443,000 Santa Fe County Office and Training
Facilities Project Revenue Series 1990,
9.00% due 7/1/04 (Escrowed to Maturity) NR/AAA 573,565
626,000 Santa Fe County Office and Training
Facilities Project Revenue Series 1990,
9.00% due 1/1/08 (Escrowed to Maturity) NR/AAA 840,205
500,000 Santa Fe Gross Receipts Tax Revenue &
Improvement, 6.35% due 6/1/02 A1/AA 526,995
1,105,000 Santa Fe Gross Receipts Tax Revenue &
Improvement, 4.20% due 6/1/99 A1/AA 1,098,436
350,000 Santa Fe Housing Development Corporation
Multifamily Revenue Refunding Series
1993-A, 5.50% due 2/1/04 (Villa Camino
Consuela Project) A/NR 349,737
1,000,000 Santa Fe Industrial Revenue Housing
Refunding, 7.25% due 12/1/05
(Ponce de Leon Project; Guaranteed:
Health Care REIT) NR/NR 1,010,500
250,000 Santa Fe Public School District, 5.20%
due 6/15/98 A1/NR 255,810
1,900,000 Santa Fe Improvement Revenue Series
1992-A, 0% due 7/1/02 (Insured: FGIC) Aaa/AAA 1,348,487
1,945,000 Santa Fe Improvement Revenue Series
1992-A, 0% due 7/1/03 (Insured: FGIC) Aaa/AAA 1,303,247
1,945,000 Santa Fe Improvement Revenue Series
1992-A, 0% due 7/1/04 (Insured: FGIC) Aaa/AAA 1,216,442
1,895,000 Santa Fe Improvement Revenue Series
1992-A, 0% due 7/1/05 (Insured: FGIC) Aaa/AAA 1,098,058
500,000 Santa Fe Improvement Revenue Series
1992-A, 0% due 7/1/06 (Insured: FGIC) Aaa/AAA 268,075
1,945,000 Santa Fe Improvement Revenue Series
1992-A, 0% due 7/1/11 (Insured: FGIC) Aaa/AAA 705,198
964,298 Santa Fe SFMR Series 1991, 8.45%
due 12/1/11 Aa/NR 1,050,131
195,000 Santa Rosa Consolidated School District
#8 Guadalupe and San Miguel Counties
General Obligation Series 1991, 7.00%
due 8/1/03 Baa/NR 209,483
210,000 Santa Rosa Consolidated School District
#8 Guadalupe and San Miguel Counties
General Obligation Series 1991, 7.00%
due 8/1/04 Baa/NR 224,765
285,000 Socorro Health Facilities Refunding
Revenue, 6.00% due 4/1/08, (Evangelical
Lutheran Good Samaritan Project;
Insured: AMBAC) Aaa/AAA 295,841
1,425,000 Taos County Local Hospital Gross
Receipts Tax Revenue Series 1992,
6.125% due 12/1/01 (Insured: Asset
Guaranty) NR/NR 1,511,426
315,000 Torrance County Environmental Revenue
Series 1992, 6.875% due 6/1/03 NR/NR 322,573
100,000 University of New Mexico Higher
Educational Revenue, 7.50% due 6/1/00 A1/AA 112,283
750,000 University of New Mexico Revenue
Series A, 4.60% due 6/1/97 A1/A 753,900
500,000 U.S. Virgin Islands Public Finance
Authority, 7.70% due 10/1/04 Baa/BBB 549,000
1,000,000 U.S. Virgin Islands Public Finance
Authority Revenue Refunding Series A,
6.90% due 10/1/01 NR/NR 1,062,910
330,000 U.S. Virgin Islands Public Finance
Authority, Series 1992-A, 7.00%
due 10/1/02 NR/NR 353,506
1,320,000 U.S. Virgin Islands Special Tax General
Obligation Series 1991, 7.75% due 10/1/06
(Hugo Insurance Claims Fund Project) NR/NR 1,442,364
3,000,000 U.S. Virgin Islands Water & Power
Authority Series A, 7.40% due 7/1/11 NR/NR 3,201,810
1,385,000 Western New Mexico University System
Revenue Series 1995, 7.75% due 6/15/19 Baa/BBB 1,478,640
TOTAL INVESTMENTS (Cost $128,127,669) $ 133,256,365
Credit ratings are unaudited.
See notes to financial statements.
To the Board of Trustees and Shareholders
Thornburg New Mexico Intermediate Municipal Fund
Santa Fe, New Mexico
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of Thornburg New Mexico Intermediate
Municipal Fund, series of Thornburg Investment Trust as of September 30,
1995, the related statement of operations, the statements of changes in net
assets, and the financial highlights for the periods indicated. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 1995 by correspondence with the
custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Thornburg New Mexico Intermediate Municipal Fund as of September 30, 1995,
the results of its operations, the changes in its net assets and the
financial highlights for the periods indicated, in conformity with generally
accepted accounting principles.
New York, New York
October 27, 1995
