Thornburg Florida
Intermediate Municipal Fund
Thornburg
FUND FACTS Intermediate Municipal
as of 9/30/96 Fund-Florida
A Shares
SEC Yield 4.59%
Taxable Equiv. Yield 7.80%
NAV $11.88
Max. Offering Price $12.31
TOTAL RETURNS (Annual Average - After Subtracting Maximum Sales Charge)
as of 9/30/96
1 Year 1.67%
Since Inception 3.28%
Inception Date (2/1/94)
The taxable equivalent yield assumes a
39.6% marginal federal tax
rate and a .2% intangible tax.
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 April 30,
1996.
The data quoted represents 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 Shareholder:
I am pleased to present the Annual Report for the Thornburg Florida Intermediate
Municipal Fund for the fiscal year ending September 30, 1996. The net asset
value per share increased 5 cents to $11.88 during the year. If you were with us
for the entire period, you received dividends of 57.2 cents per share. If you
reinvested your dividends, you received 58.5 cents per share.
Your Thornburg Florida Intermediate Municipal Fund portfolio currently holds
over 40 municipal obligations from Florida municipal borrowers. Approximately
85% 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 6.6 years. This is
shorter than the 10 year maximum average maturity permitted for your fund. If a
stronger economy in 1997 leads to higher bond yields, we have room to extend
your average portfolio maturity and improve the fund yield. Percentages of the
portfolio maturing in the coming years are summarized below:
% of portfolio maturing within Cumulative % maturing by end of
2 years = 12% year 2= 12%
2 to 4 years = 21% year 4= 33%
4 to 6 years = 18% year 6 = 51%
6 to 8 years = 16% year 8 = 67%
8 to 10 years = 11% year 10 = 78%
10 to 12 years = 10% year 12 = 88%
12 to 14 years = 4% year 14 = 92%
14 to 16 years = 4% year 16 = 96%
In the recent election Florida voters passed an initiative which will restrict
the ability of state and local governments to increase taxes without first
obtaining a two thirds majority vote of the electorate. This should be positive
for weary taxpayers. It could, however, increase financial stress among Florida
municipal entities by limiting their flexibility to manage unforeseen increases
in expenses or shortfalls in revenue. We will continue to emphasize high credit
quality and diversification in your portfolio.
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 Florida 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 municipal
investments 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 Florida Intermediate Municipal Fund.
Sincerely,
Brian J. McMahon
Managing Director
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 Florida Intermediate Municipal Fund
September 30, 1996
ASSETS
Investments, at value (cost $19,227,156) $19,599,035
Cash 76,990
Interest receivable 324,661
Receivable for fund shares sold 39,996
Prepaid expenses and other assets 595
TOTAL ASSETS 20,041,277
LIABILITIES
Payable for securities purchased 348,256
Dividends payable 35,422
Accounts payable and accrued expenses 56,087
Payable for fund shares redeemed 100,253
TOTAL
LIABILITIES 540,018
NET ASSETS $19,501,259
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($19,501,259 applicable to 1,641,678 shares
of beneficial interest outstanding) $11.88
Maximum sales charge, 3.50% of offering
price (3.63% of net asset value per share) .43
Maximum Offering Price Per Share $12.31
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 Florida Intermediate Municipal Fund
Year Ended September 30, 1996
INVESTMENT INCOME
Interest income (net of premium amortized
of $38,164) $1,024,504
EXPENSES
Investment advisory fees (Note 3) 111,985
Administration fees (Note 3) 6,248
Distribution and service fees (Note 3)
Class A Shares 46,492
Class C Shares 1,923
Transfer agent fees 29,898
Custodian fees 52,185
Professional fees 10,505
Other expenses 9,706
TOTAL EXPENSES 268,942
Less:
Expenses reimbursed by investment adviser (Note 3) (151,974)
NET EXPENSES 116,968
NET INVESTMENT INCOME 907,536
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments sold (32,173)
Increase in unrealized appreciation
of investments 66,806
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 34,633
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $942,169
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 Florida Intermediate Municipal Fund
Year Ended Year Ended
September 30, 1996 September 30, 1995
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $907,536 $631,413
Net realized loss on investments sold (32,173) (77,300)
Increase in unrealized
appreciation of investments 66,806 434,101
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 942,169 988,214
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (893,236) (609,538)
Class B Shares -- (18,433)
Class C Shares (14,300) (3,442)
FUND SHARE TRANSACTIONS -- (Note 4)
Class A Shares 4,639,271 6,406,602
Class B Shares -- (36,459)
Class C Shares (254,264) 149,556
NET INCREASE IN NET ASSETS 4,419,640 6,876,500
NET ASSETS:
Beginning of year 15,081,619 8,205,119
End of year $19,501,259 $15,081,619
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 Florida Intermediate Municipal Fund
Note 1 - ORGANIZATION
Thornburg Florida 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 series of shares of beneficial
interest in addition to those of the Fund: Thornburg New Mexico 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 April 30, 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.
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.
Thornburg Florida Intermediate Municipal Fund
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
$151,974.
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 $14,827
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 agregated $19,269,538.
Transactions in shares of beneficial interest were as follows:
Year Ended Year Ended
September 30, 1996 September 30, 1995
- -------------------------------------------------------------------------------
Shares Amount Shares Amount
Class A Shares
Shares sold 2,251,002 $26,896,251 2,280,027 $25,983,353
Shares issued to
shareholders
in reinvestment of
distributions 35,595 433,132 21,530 250,357
Shares repurchased
(1,897,693) (22,690,112) (1,748,521) (19,827,108)
Net Increase 388,904 $4,639,271 553,036 $6,406,602
Class B Shares
Shares sold -- -- 53,482 $616,141
Shares issued to
shareholders
in reinvestment of
distributions -- -- 702 8,186
Shares repurchased
-- -- (55,915) (660,786)
Net Decrease -- -- (1,731) ($36,459)
Class C Shares
Shares sold 34,572 $413,875 23,893 $280,218
Shares issued to
shareholders
in reinvestment of
distributions 876 10,490 250 2,946
Shares repurchased
(57,317) (678,629) (11,696) (133,608)
Net Increase (Decrease) (21,869) ($254,264) 12,447 $ 149,556
Note 5 - SECURITIES TRANSACTIONS
For the year ended September 30, 1996, the Fund had purchase and sale
transactions (excluding short-term securities) of $19,494,241 and $14,657,060,
respectively.
The cost of investments for Federal income tax purposes is $19,232,562.
At September 30, 1996, net unrealized appreciation of investments was
$366,473, resulting from $398,024 gross unrealized appreciation and $31,551
gross unrealized depreciation.
Accumulated net realized losses from securities transactions included in net
assets at September 30, 1996 aggregated $140,158.
For Federal income tax purposes, the Fund has realized capital loss
carryforwards of $ 134,752 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 - $30,685, September 30, 2003 - $71,894 and September 30,
2004 - $32,173.
f i n a n c i a l h i g h l i g h t s
Thornburg Florida Intermediate Municipal Fund
Per share operating performance
(for a share outstanding
throughout the period)
Period from Feb.1, 1994 (a)
Year Ended September 30, September 30,
1996 1995 1994
A C# A B** C A B* C*
Net asset value,
beginning of period $11.83 $11.86 $11.54 $11.55 $11.54 $12.06 $11.72 $11.72
Income from
investment operations:
Net investment income .57 .31 .63 .55 .55 .40 .05 .05
Net realized and
unrealized gain
(loss) on investments .05 (.02) .29 .28 .32 (.52) (.17) (.18)
Total from investment
operations .62 .29 .92 .83 .87 (.12) (.12) (.13)
Less distributions from:
Net investment income (.57) (.31) (.63) (.55) (.55) (.40) (.05) (.05)
Change in n.a.v. .05 (.02) .29 .28 .32 (.52) (.17) (.18)
Net asset value,
end of period $11.88 $11.84 $11.83 $11.83 $11.86 $11.54 $11.55 $11.54
Total Return (b) 5.37% 2.47% 8.22% 7.55% 7.74% (.95%)(1.02%)(1.10%)
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.80% 4.46%(c) 5.41% 4.69% 4.65%5.09%(c)4.80%(c) 4.89%(c)
Expenses, after
expense reductions .61% .97%(c) .38% 1.08% 1.08% .25%(c)1.05%(c) 1.10%(c)
Expenses, before
expense reductions 1.34% 6.03%(c) 1.44% 5.35% 19.08%1.95%(c)7.80%(c)40.31%(c)
Portfolio
turnover rate 77.12% 77.12% 89.60% 89.60% 89.60% 19.94% 19.94% 19.94%
Net assets at
end of period (000) $19,501 $0 $14,822 $0 $259 $8,076 $20 $109
(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.
# On April 30, 1996, all Class C shares were converted into Class A shares.
<TABLE>
<CAPTION>
s c h e d u l e o f i n v e s t m e n t s
Thornburg Florida Intermediate Municipal Fund
September 30, 1996 CUSIPS: Class A - 885-215-707
NASDAQ Symbols: Class A - THFLX
Principal Credit Rating+
Amount Issuer-Description Moody's/S&P Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$200,000 Alachua County Health Facilities Revenue, 7.00% due 12/1/01 (Shands Hospital &
Clinics Project; Escrowed to Maturity) ................................................ NR/ AAA $209,676
940,000 Brevard County Tourist Development Tax Revenue Series 1993, 6.325% due 3/1/03
(Florida Marlins' Training Facility Project) .......................................... NR/NR 961,235
300,000 Broward County Education Facilities Authority Series 1994, 5.60% due 4/1/04
(Nova Southeastern University Project; Insured: Connie Lee) ........................... NR/AAA 310,578
570,000 Broward County Health Facilities Authority, 7.00% due 8/15/11
(North Beach Hospital Project; Insured: MBIA) ......................................... Aaa/AAA 631,623
815,000 Broward County Housing Finance Authority Home Mortgage Revenue, 0% due 4/1/14 ......... A1/BBB 138,420
200,000 Cape Coral Special Obligation Wastewater Revenue, 5.625% due 7/1/00
Green Area Project; Insured: FSA) ..................................................... Aaa/AAA 207,814
250,000 Cape Coral Special Obligation Wastewater Revenue, 5.75% due 7/1/01
Green Area Project; Insured: FSA) ..................................................... Aaa/AAA 262,347
150,000 Cape Coral Special Obligation Wastewater Revenue, 6.00% due 7/1/03
Green Area Project; Insured: FSA) ..................................................... Aaa/AAA 159,997
690,000 Cape Coral Special Obligation Wastewater Revenue, 6.10% due 7/1/05
Green Area Project; Insured: FSA) ..................................................... Aaa/AAA 738,942
900,000 Clermont Water & Sewer Revenue & Refunding, 5.00% due 12/1/00 ......................... NR/NR 903,294
310,000 Dade County Guaranteed Entitlement Revenue, 0% due 2/1/97, pre-refunded 2/1/00 @ 103,
converts to 9.75% rate 2/1/97 (Insured: AMBAC) ........................................ Aaa/AAA 347,343
230,000 Dade County Health Facilities Revenue - Catholic Health, 7.50% due 8/15/00
(LOC: Allied Irish Bank) .............................................................. A1/ NR 244,396
100,000 Dade County Housing Finance Authority Series 1985-A, 4.60% due 1/1/15, put 1/1/99
(Golf View Apartments Project; LOC: Sumitomo & Credit Suisse) ......................... Aaa/AAA 100,243
96,000 Duval County Single Family Housing Revenue, 0% due 5/15/16, put 11/15/97 .............. Aaa/AAA 74,500
200,000 Escambia County Housing Finance Authority Single Family Mortgage Series C,
7.50% due 10/1/12 ..................................................................... Aaa/NR 210,136
990,000 Florida Housing Finance Authority Series 94-B, 5.70% due 10/1/24, mandatory put 10/1/04
(Plantation Colony Project; FNMA Guarantee) ........................................... NR/AAA 1,018,482
750,000 Florida Housing Finance Agency Multifamily Housing Revenue Series 1995 D, 5.10%
due 4/1/13, put 4/1/02 (Park Colony Project; LOC: Mellon Bank) ........................ A+/A1 752,265
1,000,000 Florida Housing Finance Agency Multifamily Housing Revenue Series 1983 F, 5.35%
due 12/1/05, mandatory put 6/1/00 (Insured: Connecticut General) ...................... NR/AA 1,004,980
500,000 Florida Housing Finance Agency Multifamily Guaranteed Mortgage Revenue Series 1983 I,
4.85% due 12/1/05, put 12/1/99 (Wood Forest Apartments Project; Surety: Connecticut General) NR/AA 503,910
300,000 Florida Housing Finance Authority, Multifamily Housing Revenue Series 1983-J, 4.85%
due 12/1/05, put 12/1/99 (Forest Place Apartments Project; Surety: Connecticut General) NR/AA 302,346
140,000 Florida Housing Finance Authority Capital Appreciation Residential Mortgage
Revenue, 0% due 7/15/01 (LOC: Citibank) ............................................... NR/AA 84,536
1,000,000 Florida Housing Development Authority, 6.25% due 12/1/06 (Hammock's Place Project) .... NR/AAA 1,044,910
220,000 Florida Housing Finance Authority, 7.65% due 6/1/99 (GNMA Backed) ..................... Aaa/NR 227,834
1,000,000 Florida State General Obligation Highway Revenue, 5.80% due 10/1/00 ................... Aa/AA 1,015,980
220,000 Florida State Board of Education Series D, 6.20% due 5/1/07, Escowed to Maturity (Insured: MBIA Aaa/AAA 228,534
255,000 Florida State Certificate of Participation, 6.05% due 11/15/97
(Consolidated Equipment Financing Program Project) .................................... A/A+ 260,449
720,000 Florida State Certificate of Participation, 6.05% due 5/15/97
(Consolidated Equipment Financing Program Project) .................................... A/A+ 729,266
345,000 Florida State Certificate of Participation, 6.10% due 5/15/98
(Consolidated Equipment Financing Program Project) .................................... A/A+ 354,243
200,000 Florida State Department Corrections Certificate of Participation Okeechobee Correctional,
5.90% due 3/1/04 (Insured: AMBAC) ..................................................... Aaa/AAA 211,872
300,000 Hernando County Industrial Development Revenue, 8.50% due 12/1/14
(Florida Crushed Stone Project) ....................................................... NR/NR 328,950
200,000 Hillsborough County Industrial Development Authority, 3.90% due 9/1/25, put 10/1/96
(daily demand note) ................................................................... Aa2/AA- 200,000
1,000,000 Hillsborough County Industrial Development Authority, 5.50% due 8/15/06
(University Community Hospital Inc. Project; Insured: MBIA) ........................... Aaa/AAA 1,027,540
115,000 Indian River County Capital Improvement Revenue Refunding, 8.75% due 9/1/97 (Insured: MBIA) Aaa/AAA 117,223
600,000 Jacksonville Health Facilities Industrial Development Revenue, 8.00% due 12/1/15
(National Benevolent Association Project) ............................................. Baa1/BBB+ 666,744
150,000 Jacksonville Health Facilities Industrial Development Revenue, 5.70% due 12/1/04
(National Benevolent Association Project) ............................................. Baa1/NR 149,986
100,000 Jacksonville Health Facilities Industrial Development Revenue, 6.00% due 12/1/09
(National Benevolent Association Project) ............................................. Baa1/NR 99,094
100,000 Jacksonville Health Facilities Industrial Development Revenue, 6.05% due 12/1/10
(National Benevolent Association Project) ............................................. Baa1/NR 99,053
375,000 Jacksonville Housing Revenue Refunding, 5.125% due 9/20/04
(Windmere Manor Apartments Project; Insured: GNMA) .................................... NR/AAA 379,076
250,000 Jacksonville Loan Obligation Water & Sewer Revenue, 5.30% due 4/1/99 (Insured: MBIA) .. Aaa/AAA 250,168
100,000 Jacksonville Loan Obligation Custody Receipts, 6.10% due 4/1/01 (Insured: MBIA) ....... Aaa/AAA 100,126
240,000 Miramar Wastewater Improvement Assessment Revenue, 6.00% due 10/1/02 (Insured: FGIC) .. Aaa/AAA 254,225
50,000 Okaloosa County Custody Receipts, 6.10% due 4/1/02 (Insured: MBIA) .................... Aaa/AAA 50,070
115,000 Osceola County Health Facilities Revenue Series 1994, 5.75% due 5/1/04
(Evangelical Good Samaritan Project; Insured: AMBAC) .................................. Aaa/AAA 120,162
195,000 Palm Bay Lease Revenue Refunding, 6.40% due 9/1/04
(Florida Education and Research Foundation Project) ................................... Baa/NR 199,232
205,000 Palm Bay Lease Revenue Refunding, 6.50% due 9/1/05
(Florida Education and Research Foundation Project) ................................... Baa/NR 209,434
515,000 Palm Beach County Industrial Development Revenue Series 1996, 6.10% due 12/1/07
(Lourdes-Noreen McKeen-Geriatric Care Project; LOC: Allied Irish Bank) ................ NR/A+ 526,670
270,000 Palm Beach County Industrial Development Revenue Series 1996, 6.20% due 12/1/08
(Lourdes-Noreen McKeen-Geriatric Care Project; LOC: Allied Irish Bank) ................ NR/A+ 277,171
900,000 Pinellas County Housing Finance Authority Series 1994-A, 5.75% due 8/1/01
(GNMA/FNMA Collateral) ................................................................ Aaa/NR 918,621
500,000 Port St. Lucie Utility System Revenue Series 1996-A, 0% due 9/1/07 (Insured FGIC) ..... Aaa/AAA 283,330
100,000 Sarasota Water and Sewer Utility Revenue Series 1988, 7.00% due 10/1/99 (Insured: MBIA) Aaa/AAA 102,009
TOTAL INVESTMENTS (Cost $19,227,156) $19,599,035
+Credit ratings are unauduted.
See notes to financial statements.
</TABLE>
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 Florida Intermediate Municipal Fund
Santa Fe, New Mexico
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Thornburg Florida 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 Florida 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
