Thornburg New Mexico
Intermediate Municipal Fund
Thornburg
New Mexico Intermediate
Municipal Fund
A Shares
SEC Yield 4.39%
Taxable Equiv. Yield 7.94%
NAV $13.09
Max. Offering Price $13.56
1 Year 0.99%
5 Year 5.86%
Since Inception 6.15%
(Inception date) (6/18/91)
The taxable equivalent yield assumes a 39.6% marginal federal tax
rate and an 8.50% marginal New Mexico rate.
The investment return and principal value of an investment in the fund
will fluctuate so that, when redeemed, an investor's shares may be
worth more or less than their original cost.
Maximum sales charge of the Fund's Class A Shares is 3.50%. The Fund's
Class C Shares were converted to Class A Shares on January 31, 1996.
The data quoted represent past performance and may not be construed as
a guarantee of future results.
l e t t e r t o s h a r e h o l d e r s
119 East Marcy Street, Santa Fe, New Mexico 87501 l (505) 984-0200
November 6, 1996
Dear Fellow Shareholder:
I am pleased to present the Annual Report for theThornburg New Mexico
Intermediate Municipal Fund for the fiscal year ending September 30, 1996. The
net asset value per share decreased 3 cents to $13.09 during the year. If you
were with us for the entire period, you received dividends of 63.1 cents per
share. If you reinvested your dividends, you received 64.5 cents per share.
Your Thornburg New Mexico Intermediate Municipal Fund portfolio currently holds
over 130 municipal obligations from around the state and 3 U.S. Territories.
Approximately 88% 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 coming
years. Today, your fund's weighted average maturity is approximately 6.8 years,
and we always keep it below 10 years. Percentages of the portfolio maturing in
the coming years are summarized below:
% of portfolio maturing within Cumulative % maturing by end of
2 years = 11% year 2 = 11%
2 to 4 years = 13% year 4 = 24%
4 to 6 years = 22% year 6 = 46%
6 to 8 years = 15% year 8 = 61%
8 to 10 years = 23% year 10 = 84%
10 to 12 years = 9% year 12 = 93%
12 to 14 years = 2% year 14 = 95%
14 to 16 years = 3% year 16 = 98%
Over the years, our practice of laddering a diversified portfolio of short and
intermediate maturity municipal bonds has allowed your fund to perform well in
varying interest rate environments. For instance, the A shares of Thornburg New
Mexico Intermediate Municipal Fund received a "B" letter grade for one and three
year performance and an "A" for five year performance relative to other
intermediate maturity municipal bond funds through September 30, 1996.* These
rankings, which were published in The Wall Street Journal, reflect total returns
in the top 40% of all intermediate municipal bond funds for one and three years
and a total return in the top 20% of these funds for the last five years. Most
of these intermediate municipal funds buy bonds from throughout the United
States. Your fund invests only in those bonds which are exempt from New Mexico
state income taxes. Your fund has also earned Morningstar's 4 star rating.**
Many municipal bonds issued between 1985 and 1990 have been paid off this year.
Money to pay off other bonds prior to maturity already has been raised. You may
own municipal bonds or unit trusts which are being redeemed. Your investment in
Thornburg New Mexico Intermediate Municipal Fund will not be redeemed until you
sell it. Please remember that you can easily add to your investment each month
by authorizing a simple, automatic transfer from your checking account.
Americans have been net sellers of individual municipal and U.S. government
bonds this year, while simultaneously increasing investments in foreign bonds,
U.S. stocks and money market funds. Meanwhile, foreign investors have been
supporting the U.S. bond market for about two years. I suppose the grass
sometimes appears greener on the other side of the ocean. We like it here at
home, but we have positioned your bond portfolio conservatively so as to be able
to react quickly to change and take advantage of any opportunities that arise.
Thank you for investing in Thornburg New Mexico Intermediate Municipal Fund.
Sincerely,
Brian J. McMahon
Managing Director
*Source: The Wall Street Journal, October 4, 1996. Performance data are supplied
by Lipper Analytical Services, Inc., and reflect performance for the 1, 3, and 5
year periods ending September 30, 1996. Investment objectives are defined by The
Wall Street Journal. The average maturity and average quality of the funds
within the intermediate municipal objective may differ. At September 30, 1996,
121, 96, and 32 intermediate 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. A portion of
its income may be subject to the federal alternative minimum tax.
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 New Mexico Intermediate Municipal Fund
September 30, 1996
ASSETS
Investments, at value (cost $125,852,630) $130,660,648
Cash 21,095
Receivable for fund shares sold 30,538
Interest receivable 2,134,249
Prepaid expenses and other assets 4,108
TOTAL ASSETS 132,850,638
LIABILITIES
Payable for investments purchased 1,000,000
Payable for fund shares redeemed 173,637
Accounts payable and accrued expenses 132,419
Payable to investment adviser 57,950
Dividends payable 179,704
TOTAL LIABILITIES 1,543,710
NET ASSETS $131,306,928
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($131,306,928 applicable to 10,030,551 shares of beneficial
interest outstanding) $13.09
Maximum sales charge, 3.50% of offering
price (3.63% of net asset value per share) .47
Maximum Offering Price Per Share $13.56
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 New Mexico Intermediate Municipal Fund
Year Ended September 30, 1996
INVESTMENT INCOME
Interest income (net of premium amortized
of $371,125) $ 7,707,317
EXPENSES
Investment advisory fees (Note 3) 788,096
Administration fees (Note 3) 40,674
Distribution and service fees (Note 3)
Class A Shares 331,338
Class C Shares 409
Transfer agent fees 101,284
Custodian fees 95,185
Professional fees 29,830
Accounting fees 14,982
Registration and filing fees 1,399
Other expenses 30,164
TOTAL EXPENSES 1,433,361
Less:
Expenses reimbursed by investment adviser (Note 3) (107,076)
NET EXPENSES 1,326,285
NET INVESTMENT INCOME 6,381,032
REALIZED AND UNREALIZED
LOSS ON INVESTMENTS
Net realized loss on investments sold (21,671)
Decrease in unrealized appreciation of investments (320,678)
NET REALIZED AND UNREALIZED
LOSS ON INVESTMENTS (342,349)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 6,038,683
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 New Mexico Intermediate Municipal Fund
Year Ended Year Ended
September 30, 1996 September 30, 1995
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $6,381,032 $6,511,067
Net realized loss on investments sold (21,671) (543,396)
Increase (decrease) in unrealized
appreciation of investments (320,678) 4,633,144
NET INCREASE IN NET
ASSETS RESULTING FROM OPERATIONS 6,038,683 10,600,815
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (6,378,163) (6,490,487)
Class B Shares -- (17,017)
Class C Shares (2,869) (3,563)
FUND SHARE TRANSACTIONS-- (Note 4)
Class A Shares (5,090,560) (11,243,065)
Class B Shares -- (92,064)
Class C Shares (143,365) 78,705
NET DECREASE IN NET ASSETS (5,576,274) (7,166,676)
NET ASSETS:
Beginning of year 136,883,202 144,049,878
End of year $131,306,928 $136,883,202
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 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 separate entity for financial reporting
and tax purposes. The Fund's investment objective is to obtain as high a level
of current income exempt from Federal income tax as is consistent with the
preservation of capital.
The Fund currently offers only one class of shares of beneficial interest, 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. On January 31, 1996, all existing Class C 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 or Class C 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 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 were sold at net asset value
without a sales charge at the time of purchase, but were 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. Class specific expenses of the
Fund were limited to distribution fees and minor 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 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 Fund are reviewed
by the officers of the Fund under the general supervision of the Trustees.
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 Fund for the year ended September 30, 1996 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 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 were amortized on
a straight-line basis over a 60-month period.
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
the 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.
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. For the year ending September 30,
1996, these fees were payable at annual rates ranging from 1/2 of 1% to 11/40 of
1% of the average daily net assets of the Fund. Effective July 1, 1996, the Fund
entered into an Administrative Services Agreement with the Adviser, whereby the
Adviser will perform certain administrative services for the shareholders of
each class of the Fund's shares, and for which fees will be payable at an annual
rate of up to 1/8 of 1% of the average daily net assets attributable to each
class of shares.
In the event normal operating expenses of the Fund, 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 Fund for such excess. No such reimbursement was
required as a result of this limitation. For the year ended September 30, 1996,
the Adviser voluntarily reimbursed certain operating expenses amounting to
$107,076.
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, 1996, the Distributor earned commissions aggregating $26,797
from the sale of Class A shares and collected no contingent deferred sales
charges from redemptions of Class C 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 C shares under which the Fund 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,
1996, 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.
Note 4 - SHARES OF BENEFICIAL INTEREST:
At September 30, 1996, there were an unlimited number of shares of beneficial
interest authorized, and capital paid-in aggregated $127,256,422. Transactions
in shares of beneficial interest were as follows:
Year Ended Year Ended
September 30, 1996 September 30, 1995
Class A Shares Shares Amount Shares Amount
Shares sold 1,300,328 $17,051,801 1,915 $24,612,469
Shares issued to shareholders
in reinvestment of
distributions 320,921 4,210,070 327,061 4,196,897
Shares repurchased (2,011,202) (26,352,431) (3,134,511) (40,052,431)
Net Decrease (389,953) ($5,090,560) (892,422 ($11,243,065)
Class B Shares
Shares sold -- -- 69,495 $899,489
Shares issued to shareholders
in reinvestment of
distributions -- -- 563 7,227
Shares repurchased -- -- (76,399) (998,782)
Net Decrease -- -- (6,341) ($92,064)
Class C Shares
Shares sold 6,829 $90,000 5,853 $75,792
Shares issued to shareholders
in reinvestment of
distributions 153 2,031 256 3,316
Shares repurchased (17,739) (235,396) (31) (403)
Net Increase (Decrease) (10,757) ($143,365) 6,078 $78,705
Note 5 - SECURITIES TRANSACTIONS
For the year ended September 30, 1996, the Fund had purchase and sale
transactions (excluding short-term securities) of $14,163,827 and $19,335,105,
respectively.
The cost of investments for Federal income tax purposes is $125,880,941. At
September 30, 1996, net unrealized appreciation of investments was $4,779,707,
resulting from $4,931,309 gross unrealized appreciation and $151,602 gross
unrealized depreciation.
Accumulated net realized losses from securities transactions included in net
assets at September 30, 1996 aggregated $757,512.
For tax purposes, the Fund has realized capital loss carryforwards of $729,201
as of September 30, 1996 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 - $3,404,
September 30, 2003 - $ 694,985, and September 30, 2004 - $30,812.
f i n a n c i a l h i g h l i g h t s
Thornburg New Mexico Intermediate Municipal Fund
Per share operating performance
(for a share outstanding Year Ended
throughout the period) September 30,
1996 1995 1994 1993 1992
Class of Shares: A A A A A
Net asset value, beginning of year $13.12 $12.72 $13.36 $12.64 $12.21
Income from investment operations:
Net investment income .63 .60 .60 .65 .74
Net realized and unrealized
gain (loss) on investments (.03) .40 (.63) .72 .43
Total from investment operations .60 1.00 (.03) 1.37 1.17
Less distributions from:
Net investment income (.63) (.60) (.60) (.65) (.74)
Realized capital gains -- -- (.01) -- --
Change in net asset value (.03) .40 (.64) .72 .43
Net asset value, end of year $13.09 $13.12 $12.72 $13.36 $12.64
Total return (a) 4.68% 8.10% (.26%) 10.96% 9.98%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.81% 4.71% 4.58% 4.95% 5.76%
Expenses, after expense reducts 1.00% 1.00% .90% .61% .42%
Expenses, before expense reducts 1.07% 1.06% 1.04% 1.01% 1.12%
Portfolio turnover rate 10.88% 17.06% 6.87% 10.33% 32.15%
Net assets
at end of year (000) $131,307 $136,742 $143,910 $128,590 $71,034
(a) Sales loads are not reflected in computing total return.
Thornburg New Mexico Intermediate Municipal Fund
Per share operating performance
(for a share outstanding Four Month Period from
throughout the period) Period Ended Year Ended September 1, (a)
January 31, September 30, to September 30,
1996 1995 1994
Class of Shares: C** B* C B C
Net asset value, beginning of period $13.12 $12.72 $12.71 $12.87 $12.87
Income from investment operations:
Net investment income .19 .52 .52 .05 .04
Net realized and unrealized
gain (loss) on investments .15 .37 .41 (.15) (.16)
Total from investment operations .34 .89 .93 (.10) (.12)
Less distributions from:
Net investment income (.19) (.52) (.52) (.05) (.04)
Change in net asset value .15 .37 .41 (.15) (.16)
Net asset value, end of period $13.27 $13.09 $13.12 $12.72 $12.71
Total return (b) 2.57% 7.42% 7.48% (.80%) (.90%)
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.22%(c) 4.06% 4.05% 3.47%(c) 3.49%(c)
Expenses,
after expense reductions 1.40%(c) 1.64% 1.66% 1.71%(c) 1.74%(c)
Expenses,
before expense reductions 13.03%(c) 4.71% 15.86% 10.90%(c) 21.92%(c)
Portfolio turnover rate 10.88% 17.06% 17.06% 6.87% 6.87%
Net assets
at end of period (000) $0 $0 $141 $81 $59
(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.
* On September 28, 1995, all Class B shares were converted into Class A shares.
**On January 31, 1996, all Class C shares were converted into Class A shares.
<TABLE>
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s c h e d u l e o f i n v e s t m e n t s
Thornburg New Mexico Intermediate Municipal Fund
September 30, 1996 CUSIPS: Class A - 885-215-301
NASDAQ Symbols: Class A - THNMX
Principal Credit Rating+
Amount Issuer-Description Moody's/S&P Value
<S> <C> <C> <C>
$225,000 Albuquerque Airport Revenue Series B, 8.40% due 7/1/00 A1/A+ $233,318
420,000 Albuquerque Mortgage Obligation Revenue Series B-2, 0% due 5/15/11 (Insured: FGIC) Aaa/AAA 143,926
50,000 Albuquerque Gross Receipts Tax Revenue, 6.20% due 7/1/05 Aaa/AAA 53,086
1,000,000 Albuquerque Gross Receipts Tax Revenue, 5.375% due 7/1/01 (Bluewater Apartments Project) NR/NR 1,008,680
1,280,000 Albuquerque Gross Receipts and Lodger's Tax, 0% due 7/1/02 (Insured: FSA) Aaa/AAA 965,606
1,520,000 Albuquerque Gross Receipts and Lodger's Tax, 0% due 7/1/03 (Insured: FSA) Aaa/AAA 1,085,386
2,035,000 Albuquerque Gross Receipts and Lodger's Tax, 0% due 7/1/05 (Insured: FSA) Aaa/AAA 1,294,016
2,000,000 Albuquerque Gross Receipts and Lodger's Tax, 0% due 7/1/12 (Insured: FSA) Aaa/AAA 801,480
800,000 Albuquerque Gross Receipts and Lodger's Tax, 3.90% due 7/1/23, put 10/7/96
(weekly demand note) (LOC: Canadian Imperial) Aa3/VMIG1 800,000
80,000 Albuquerque Hospital Revenue, 7.20% due 7/1/97 (Escrowed to Maturity) Aaa/AAA 81,362
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 1,074,150
300,000 Albuquerque Hospital Revenue, 6.625% due 5/15/10
(St. Joseph's Health Care Project; Insured: MBIA Aaa/AAA 321,954
2,000,000 Albuquerque Hospital Revenue Series 1992, 5.60% due 8/1/99 (Insured: MBIA) Aaa/AAA 2,057,300
335,000 Albuquerque Hospital Revenue Series A, 5.80% due 8/1/00
(Presbyterian Health Care Project; Insured: MBIA) Aaa/AAA 348,202
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 2,653,075
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 1,071,002
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 1,849,798
1,000,000 Albuquerque Water and Sewer System Revenue Refunding Series B, 6.95% due 7/1/02 A1/AA 1,093,290
1,500,000 Albuquerque Water and Sewer Revenue, 7.00% due 7/1/03 A1/AA 1,642,485
1,750,000 Albuquerque Water and Sewer Revenue Series 1990-C, 7.00% due 7/1/05 NR/AA 1,909,897
600,000 Albuquerque Water and Sewer Revenue, 6.25% due 7/1/08 A1/AA 632,286
1,225,000 Albuquerque MFHR Series 1991, 8.50% due 7/1/21, put 7/1/01 (Beach Apartments Project) NR/NR 1,254,866
2,995,000 Albuquerque MFHR Series 1994, 6.75% due 1/1/24, put 1/1/04 (Dorado Village Project) NR/AAA 2,872,445
250,000 Albuquerque Refuse Removal and Disposal Rev., 6.80% due 7/1/98 (Insured: AMBAC) Aaa/AAA 260,920
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 294,077
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 310,078
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 173,247
1,000,000 Albuquerque Special Assessment District Series A, 6.45% due 1/1/15
(Cottonwood Mall Project; LOC: Sumitomo Bank) NR/A+ 1,000,850
45,000 Albuquerque Special Assessment District No. 219 Series B, 5.50% due 7/1/00
(Water and Sewer Improvement Project; LOC: Sumitomo Bank) NR/A 45,055
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 195,263
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 405,146
4,500,000 Bernalillo County Multifamily Housing Revenue Series 1994-A, 6.50% due 10/1/19,
put 10/1/06 (Village Apartments Project; Insured: AXA Reinsurance Co.) NR/AA 4,680,855
2,300,000 Bernalillo Multifamily Housing Revenue Series 1988, 5.80% due 11/1/25, put 11/1/06
(Sunchase Apartments Project; Insured: AXA Reinsurance Co.) NR/AA 2,319,044
500,000 Bloomfield Gross Receipts Tax Revenue Series 1992-B, 6.50% due 8/1/07 Baa/NR 511,990
1,500,000 Dona Ana County Gross Receipts Tax Refunding and Improvement Series 1993,
5.875% due 6/1/09 (Insured: Asset Guaranty) NR/AA 1,523,265
1,000,000 Dona Ana County Gross Receipts Tax, 6.00% due 6/1/14 (Asset Guaranty) NR/AA 997,740
330,000 Dona Ana County Subordinated Gross Receipts Tax Revenue, 6.125% due 6/1/03 NR/NR 320,750
260,000 Dona Ana County Subordinated Gross Receipts Tax Revenue, 6.25% due 6/1/04 NR/NR 252,286
510,000 Espanola Gross Receipts Tax Revenue, 7.10% due 3/1/02 (Insured: MBIA) Aaa/AAA 536,000
550,000 Espanola Gross Receipts Tax Revenue, 7.20% due 3/1/03 (Insured: MBIA) Aaa/AAA 578,787
525,000 Espanola Gross Receipts Tax Revenue, 6.25% due 3/1/00 (Insured: MBIA) Aaa/AAA 538,214
1,850,000 Farmington Pollution Control Revenue, 3.75% due 9/1/24, put 10/1/96
(daily demand notes) (LOC: Barclay's Bank) A-1/VMIG1 1,850,000
750,000 Farmington Utility System Refunding Revenue, 5.20% due 5/15/00 (Insured: FGIC) Aaa/AAA 764,573
1,000,000 Farmington Utility System Refunding Revenue, 5.40% due 5/15/02 (Insured: FGIC) Aaa/AAA 1,028,720
1,500,000 Gallup Pollution Control Rev. Ref. Series 1992, 6.45% due 8/15/06 (Insured: MBIA) Aaa/AAA 1,632,690
500,000 Gallup Sales Tax Revenue Sinking Fund Bonds, 6.75% due 6/1/06 (Insured: MBIA) Aaa/AAA 531,370
1,000,000 Guam Limited Obligation Highway Series 1992-A, 5.50% due 5/1/99
(Insured: Capital Guaranty) NR/AAA 1,026,080
280,000 Hidalgo County Municipal School District of Lordsburg, 6.875% due 7/1/00 NR/NR 287,146
300,000 Hidalgo County Municipal School District of Lordsburg, 6.875% due 7/1/01 NR/NR 307,692
315,000 Hidalgo County Municipal School District of Lordsburg, 6.875% due 7/1/02 NR/NR 321,306
2,500,000 Jicarilla Apache Tribe Tribal Refunding Revenue Bonds, 7.75% due 7/1/05 NR/A 2,544,950
1,175,000 Las Cruces Gross Receipts Refunding Revenue, 5.45% due 12/1/99 A/A 1,205,456
625,000 Las Cruces Gross Receipts Refunding Revenue, 5.85% due 12/1/01 A/A 654,156
1,500,000 Las Cruces Gross Receipts Refunding Revenue Series 1992, 6.25% due 12/1/05 A/A 1,589,445
1,200,000 Las Cruces Joint Utility Refunding and Improvement Revenue, 6.50% due 7/1/07 A1/NR 1,296,324
1,160,000 Las Cruces Municipal Sales Tax Revenue Series 1991, 6.50% due 12/1/06 A/NR 1,223,174
380,000 Las Cruces Gross Receipts Tax Revenue Series 1995, 6.00% due 6/1/01
(South Central Solid Waste Authority Project) NR/A 397,066
85,000 Lordsburg Gross Receipts and Lodgers Tax Revenue, 8.125% due 12/1/97 NR/NR 88,355
230,000 Lordsburg Gross Receipts and Lodgers Tax Revenue, 8.625% due 12/1/02 NR/NR 242,526
1,150,000 Lordsburg Pollution Control Revenue, 6.50% due 4/1/13 (Phelps Dodge Project) A2/A- 1,203,831
500,000 Los Alamos County Utility System Revenue Refunding Series A, 6.90% due 1/1/97 Baa1/BBB+ 503,555
2,445,000 Los Alamos County Utility System Revenue Refunding Series A, 6.00% due 7/1/08
(Insured: FSA) Aaa/AAA 2,543,582
350,000 Milan General Obligation Sanitary Sewer Series 1994, 7.00% due 9/1/13 NR/NR 374,283
2,790,000 New Mexico Educational Assistance Foundation Revenue, 6.70% due 4/1/02
(Insured: AMBAC) Aaa/AAA 2,960,692
1,150,000 New Mexico Educational Assistance Foundation Revenue, 6.20% due 12/1/01 Aaa/NR 1,215,838
815,000 New Mexico Educational Assistance Foundation Revenue, 6.45% due 12/1/04 Aaa/NR 883,012
1,565,000 New Mexico Educational Assistance Foundation Revenue, 6.85% due 12/1/05 A/NR 1,620,557
140,000 New Mexico Student Loan Revenue, 5.55% due 12/1/01 A/NR 143,587
2,755,000 New Mexico Educational Assistance Foundation Revenue, 6.65% due 3/1/07 Aaa/NR 2,866,082
980,000 New Mexico MFA MFHR Series 1991-C, 6.75% due 7/1/11 NR/AAA 1,000,923
1,410,000 New Mexico MFA MFHR Series 1991-C, 6.75% due 7/1/11 NR/AAA 1,440,103
85,000 New Mexico MFA SFMR Series A, 7.00% due 7/1/14 A1/A+ 61,668
2,335,458 New Mexico MFA SFMR Series A, 0% due 7/1/15 Aa/A+ 352,491
85,000 New Mexico MFA SFMR Series C, 7.80% due 7/1/99 (Insured: FGIC) Aaa/AAA 88,004
95,000 New Mexico MFA SFMR Series A, 6.50% due 3/1/98 AA-/NR 96,846
665,000 New Mexico MFA SFMR Series A-1, 6.05% due 1/1/00 Aa/AA 686,912
255,000 New Mexico MFA SFMR Series A-2, 6.20% due 1/1/01 Aa/AA 263,277
660,000 New Mexico MFA SFMR Series 1992-A-1, 6.30% due 1/1/02 Aa/AA 689,852
5,145,000 New Mexico MFA SFMR Series 1992-A-1, 6.85% due 7/1/10 Aa/AA 5,351,572
1,115,000 New Mexico MFA SFMR Series 1992-A-1, 6.90% due 7/1/08 NR/AAA 1,158,117
1,375,000 New Mexico State Severance Tax Refunding Series 1992-C, 5.30% due 7/1/97 Aa/AA 1,390,070
1,000,000 New Mexico State Severance Tax Refunding Series 1992-C, 5.60% due 7/1/02 Aa/AA 1,020,540
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 1,318,730
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 1,659,577
225,000 New Mexico Equipment Loan Council Hospital Revenue, 7.90% due 6/1/11
(San Juan Regional Medical Center, Inc. Project) A/NR 251,030
575,000 New Mexico Equipment Loan Council Hospital Revenue, 7.80% due 6/1/06
(San Juan Regional Medical Center, Inc. Project) A/NR 637,922
2,000,000 New Mexico Hospital Equipment Loan Council Revenue, 6.40% due 6/1/09
(Memorial Medical Center Project) A/NR 2,049,360
245,000 New Mexico State University Revenue, 7.00% due 11/1/96 (Escrowed to Maturity) Aaa/AAA 245,679
390,000 New Mexico State University Revenue, 5.85% due 4/1/99 A1/AA 402,164
380,000 New Mexico State University Revenue, 5.85% due 4/1/00 A1/AA 394,360
335,000 New Mexico State University Revenue, 5.85% due 4/1/01 A1/AA 349,532
1,050,000 Northern Mariana Islands Ports Authority Airport Rev. Series 1987-B, 6.90% due 10/1/01 A2/NR 1,073,594
555,000 Northern Mariana Islands Ports Authority Airport Rev. Series 1987-B, 7.00% due 10/1/02 A2/NR 567,471
750,000 Puerto Rico Public Improvement Revenue, 6.60% due 7/1/04 Baa1/A 834,300
1,300,000 Puerto Rico Highway and Transportation Authority Highway Revenue, 5.70% due 7/1/98 Baa1/A 1,329,653
2,000,000 Puerto Rico Public Building Authority Revenue, 6.10% due 7/1/00 Baa1/A 2,090,240
1,500,000 Puerto Rico Electric Power Revenue Refunding Series 1992-Q, 5.70% due 7/1/00 Baa1/A 1,547,820
100,000 Questa Independent School Dist. #9 G.O. School Bldg. Series 7/1/87, 8.50% due 10/1/00 NR/NR 107,936
150,000 Rio Grande Natural Gas Association Natural Gas System Revenue, 5.00% due 7/1/00 Baa1/BBB+ 149,988
375,000 Rio Rancho Gross Receipts Tax Revenue Series 1995 A, 5.50% due 12/1/00 (Insured: CGIC) Aaa/AAA 386,786
395,000 Rio Rancho Gross Receipts Tax Revenue Series 1995 A, 5.50% due 12/1/01 (Insured: CGIC) Aaa/AAA 408,229
420,000 Rio Rancho Gross Receipts Tax Revenue Series 1995 A, 5.50% due 12/1/02 (Insured: CGIC) Aaa/AAA 434,150
440,000 Rio Rancho Gross Receipts Tax Revenue Series 1995 A, 5.50% due 12/1/03 (Insured: CGIC) Aaa/AAA 454,155
500,000 Rio Rancho Water and Wastewater System, 8.00% due 5/15/02 (Insured: FSA) Aaa/AAA 576,685
1,000,000 Rio Rancho Water & Wastewater Series 1995 A, 6.50% due 5/15/06 (Insured: FSA) Aaa/AAA 1,097,390
1,000,000 San Juan County Gross Receipts / Gasoline Tax Refunding Revenue Series 1994-B,
7.00% due 9/15/09, pre-refunded 9/15/04 @101 A/NR 1,145,930
115,000 Sandoval County Gross Receipts Tax Refunding Revenue Series 1992, 7.00% due 11/1/07 Baa1/NR 124,347
125,000 Sandoval County Gross Receipts Tax Refunding Revenue Series 1992, 7.00% due 11/1/08 Baa1/NR 134,879
135,000 Sandoval County Gross Receipts Tax Refunding Revenue Series 1992, 7.00% due 11/1/09 Baa1/NR 145,560
145,000 Sandoval County Gross Receipts Tax Refunding Revenue Series 1992, 7.00% due 11/1/10 Baa1/NR 155,885
340,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 7/1/01 (Escrowed to Maturity) NR/AAA 401,900
356,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 1/1/02 (Escrowed to Maturity) NR/AAA 425,748
372,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 7/1/02 (Escrowed to Maturity) NR/AAA 450,931
406,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 7/1/03 (Escrowed to Maturity) NR/AAA 502,782
443,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 7/1/04 (Escrowed to Maturity) NR/AAA 558,277
626,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 1/1/08 (Escrowed to Maturity) NR/AAA 822,226
500,000 Santa Fe Gross Receipts Tax Revenue & Improvement, 6.35% due 6/1/02 A1/AA 517,765
315,000 Santa Fe Housing Development Corporation Multifamily Revenue Refunding Series
1993-A, 5.50% due 2/1/04 (Villa Camino Consuela Project; Credit Support HUD 8) A/NR 319,338
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 1,012,490
250,000 Santa Fe Public School District, 5.20% due 6/15/98 A1/NR 254,435
475,000 Santa Fe Refuse Disposal System Improvement Net Rev Series 1996-B, 5.50% due 6/1/02 A/NR 484,685
325,000 Santa Fe Refuse Disposal System Improvement Net Rev Series 1996-B, 5.50% due 6/1/03 A/NR 330,775
370,000 Santa Fe Refuse Disposal System Improvement Net Rev Series 1996-B, 5.50% due 6/1/04 A/NR 375,051
1,900,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/02 (Insured: FGIC) Aaa/AAA 1,433,322
1,945,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/03 (Insured: FGIC) Aaa/AAA 1,379,744
1,945,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/04 (Insured: FGIC) Aaa/AAA 1,288,854
1,895,000 Santa Fe Improvement Revenue Series 1992-A ,0% due 7/1/05 (Insured: FGIC) Aaa/AAA 1,164,553
500,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/06 (Insured: FGIC) Aaa/AAA 284,960
1,945,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/11 (Insured: FGIC) Aaa/AAA 760,320
761,410 Santa Fe Single Family Mortgage Revenue Series 1991, 8.45% due 12/1/11 Aa/NR 810,559
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 206,700
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 222,674
285,000 Socorro Health Facilities Refunding Revenue, 6.00% due 5/1/08, (Evangelical
Lutheran Good Samaritan Project; Insured: AMBAC) Aaa/AAA 297,215
1,240,000 Taos County Local Hospital Gross Receipts Tax Revenue
Series 1992, 6.125% due 12/1/01 (Insured: Asset Guaranty) NR/AA 1,310,792
670,000 Taos County Local Hospital Gross Receipts Tax, 0% due 10/15/02,
pre-refunded 10/15/99 AAA 490,715
1,000,000 Taos County Local Hospital Gross Receipts Tax Series 1996-B, 4.75%
due 11/15/98 (Insured: Asset Guarantee) NR/AA 1,005,570
295,000 Torrance County Environmental Revenue Series 1992, 6.875% due 6/1/03 NR/NR 297,092
100,000 University of New Mexico Higher Educational Revenue, 7.50% due 6/1/00 A1/AA 109,632
500,000 U.S. Virgin Islands Public Finance Authority, 7.70% due 10/1/04 Baa/BBB 540,585
1,000,000 U.S. Virgin Islands Public Finance Authority Revenue Refunding Series A,
6.90% due 10/1/01 NR/NR 1,065,450
330,000 U.S. Virgin Islands Public Finance Authority, Series 1992-A, 7.00% due 10/1/02 NR/NR 354,146
1,250,000 U.S. Virgin Islands Special Tax General Obligation Series 1991, 7.75% due 10/1/06
(Hugo Insurance Claims Fund Project) NR/NR 1,352,350
3,000,000 U.S. Virgin Islands Water & Power Authority Series A, 7.40% due 7/1/11 NR/NR 3,148,590
1,385,000 Western New Mexico University System Revenue Series 1995, 7.75% due 6/15/19 Baa/BBB 1,509,470
TOTAL INVESTMENTS (Cost $125,852,630) $130,660,648
</TABLE>
+ Credit ratings are unaudited.
See notes to financial statements.
i n d e p e n d e n t a u d i t o r ' s r e p o r t
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, 1996, 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, 1996 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, 1996, 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 25, 1996
