Thornburg New Mexico
Intermediate Municipal Fund
Thornburg
New Mexico Intermediate
Municipal Fund
A Shares
SEC Yield 4.26%
Taxable Equiv. Yields 7.71%
NAV $13.07
Max. Offering Price $13.54
1 Year 2.35%
3 Year 3.91%
Since Inception 6.23%
Taxable equivalent yields assume 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 data quoted represent past performance and may not be
construed as a guarantee of future results.
119 East Marcy Street, Santa Fe, New Mexico 87501 l (505) 984-0200
May 5, 1996
Dear Fellow Shareholder:
The 6-month period ending March 31, 1996 continued a period of change in the
bond market. Interest rates fell sharply in late 1995, only to increase
significantly in 1996 to date. The net asset value of the A shares decreased
five cents per share to $13.07 in the six months ended March 31, 1996. If you
were with us for the entire period, you received dividends of 30.9 cents per
share. If you reinvest your dividends, you received 31.2 cents per share.
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 our 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. The bond price dipped
even more in late 1994 before recovering noticeably last year. On March 31, 1996
the Farmington bond was valued at 103.36% of its maturity amount at a market
yield of 4.76%. The taxable equivalent yield to maturity on the bond at this
point of a 36% bracket federal taxpayer (8.5% state rate) was approximately
8.13%.
In general, the price volatility for your Fund was less than that of the
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 during 1995. So
far in 1996, the interim market prices of the bonds in your fund portfolio have
decreased. These fluctuations in interim market prices of bonds can provide
signals for when to buy more bonds. When bond prices drop sharply, it may be a
good time to buy more.
Today, your portfolio includes approximately 145 bonds from around the state and
3 U.S. territories, approximately 90% 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 current dollar-weighted
average maturity of approximately 6.4 years. This is shorter than the 10-year
maximum average maturity permitted for your fund. If higher yields and lower
bond prices continue, we should have room to extend your average portfolio
maturity and improve the fund yield.
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 bond portfolio by authorizing a
simple, automatic transfer from your checking account to Thornburg 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
March 31, 1996
(unaudited)
ASSETS
Investments, at value (cost $125,934,166) ........ $130,516,601
Cash ............................................. 96,668
Receivable for fund shares sold .................. 119,236
Interest receivable .............................. 2,185,661
Prepaid expenses and other assets ................ 5,247
TOTAL ASSETS .... 132,923,413
LIABILITIES
Dividends payable ................................ 167,409
Payable for fund shares redeemed ................. 50,263
Accounts payable and accrued expenses ............ 122,556
Accounts payable investment adviser .............. 62,681
TOTAL LIABILITIES 402,909
NET ASSETS ....................................... $132,520,504
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($132,520,504 applicable to 10,141,774 shrs of beneficial
interest outstanding) $13.07
Maximum sales charge, 3.50% of offering
price (3.63% of net asset value per share) .47
Maximum Offering Price Per Share $13.54
See notes to financial statements.
Thornburg New Mexico Intermediate Municipal Fund
Six Month Period Ended March 31, 1996
(unaudited)
INVESTMENT INCOME
Interest income (net of premium amortized
of $198,821) .................................... $ 3,850,560
EXPENSES
Investment advisory fees (Note 3) .................... 423,885
Distribution and service fees (Note 3)
Class A Shares .................................... 169,384
Class C Shares .................................... 409
Transfer agent fees .................................. 54,223
Custodian fees ....................................... 49,260
Professional fees .................................... 13,125
Accounting fees ...................................... 7,798
Other expenses ....................................... 11,129
TOTAL EXPENSES ..................... 729,213
Less:
Investment advisory fees deferred by
investment adviser (Note 3) ................ (43,241)
Expenses assumed by investment adviser (Note 3) ... (7,488)
NET EXPENSES ....................... 678,484
NET INVESTMENT INCOME .............. 3,172,076
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments sold ................ (9,258)
Decrease in unrealized appreciation of investments ... (546,262)
NET REALIZED AND UNREALIZED
LOSS ON INVESTMENTS ........... (555,520)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............... $ 2,616,556
See notes to financial statements ....................
Thornburg New Mexico Intermediate Municipal Fund
(unaudited)
Six Month Period Year Ended
Ended March 31, 1996 September 30, 1995
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $3,172,076 $6,511,067
Net realized loss ................ (9,258) (543,396)
Increase (Decrease)
in unrealized appreciation .......
of investments
(546,262) 4,633,144
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .......2,616,556 10,600,815
DIVIDENDS TO SHAREHOLDERS:
From net investment income .......
Class A Shares (3,169,207) (6,490,487)
Class B Shares ................. -- (17,017)
Class C Shares ................. (2,869) (3,563)
FUND SHARE TRANSACTIONS--(Note 4)
Class A Shares ................. (3,663,813) (11,243,065)
Class B Shares ................. -- (92,064)
Class C Shares ................. (143,365) 78,705
NET DECREASE IN NET ASSETS ............(4,362,698) (7,166,676)
NET ASSETS:
Beginning of period .........136,883,202 144,049,878
End of period ........... $ 132,520,504 $ 136,883,202
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 Limited Term U.S.
Government Fund, Thornburg Intermediate Municipal Fund, Thornburg Limited Term
Income Fund, Thornburg Florida Intermediate Municipal Fund and Thornburg Value
Fund. Each series is considered to be a separate 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. 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 shares or Class
C shares. Each class of shares of a Fund represented 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, effective October 2, 1995,
were subject to a contingent deferred sales charge upon redemption within one
year, and bore both a service fee and a distribution fee, and (iv) the
respective classes had different reinvestment privileges. Additionally, each
Fund may allocate among its classes certain expenses, to the extent allowable to
specific classes, including transfer agent fees, government registration fees,
certain printing and postage costs, and administrative and legal expenses.
Currently, class specific expenses of the Funds are limited to distribution 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 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 period ended March 31, 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 are being amort-
ized 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
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 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 provides 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 period ended March 31, 1996, the Adviser
voluntarily deferred a portion of its advisory fee amounting to $43,241 and
assumed certain operating expenses amounting to $7,488. These expenses may be
repaid to the Adviser by the Fund, however such repayment will depend upon the
overall level of Fund expenses for the entire fiscal year ending September 30,
1996.
The Fund has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Fund shares. For the
period ended March 31, 1996, the Distributor earned commissions aggregating
$13,078 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 had 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 could
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 period ended March 31, 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. The compensation of unaffiliated directors of the
Fund is borne by the Fund.
Thornburg New Mexico Intermediate Municipal Fund
Note 4 - SHARES OF BENEFICIAL INTEREST:
At March 31, 1996, there were an unlimited number of shares of beneficial
interest authorized, and capital paid-in aggregated $128,683,169. Transactions
in shares of beneficial interest were as follows:
Six Month Period Ended Year Ended
March 31, 1996 September 30, 1995
Class A Shares ..... Shares Amount Shares Amount
Shares sold 603,717 $7,980,449 1,915,028 $24,612,469
Shares issued to shareholders
in reinvestment of
distributions . 159,888 2,112,595 327,061 4,196,897
Shares repurchased . (1,042,335) (13,756,857) (3,134,511) (40,052,431)
Net Decrease ....... (278,730) ($3,663,813) (892,422) ($11,243,065)
Class B Shares
Shares sold - -- 69,495 $ 899,489
Shares issued to shareholders
in reinvestment of
distributions . -- -- 563 7,229
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 period ended March 31, 1996, the Fund had purchase and sale transactions
(excluding short-term securities) of $6,388,411 and $9,765,280, respectively.
The cost of investments for Federal income tax purposes is $125,971,253. At
March 31, 1996, net unrealized appreciation of investments was $4,545,348,
resulting from $4,829,811 gross unrealized appreciation and $284,463 gross
unrealized depreciation.
Accumulated net realized losses from securities transactions included in net
assets at March 31, 1996 aggregated $745,100.
For tax purposes, the Fund has realized capital loss carryforwards of $698,089
as of March 31, 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 and
September 30, 2003 - $694,685.
Thornburg New Mexico Intermediate Municipal Fund
Per share operating performance .... Six Month Period from
(for a share outstanding ........... Period Ended Year Ended 6/21/91 (a)
throughout the period) ............. March 31, September 30, to Sept 30,
1996 1995 1994 1993 1992 1991
Class of Shares: .................. A A A A A A
Net asset value, beginning of period $13.12 $12.72 $13.36 $12.64 $12.21 $12.06
Income from investment operations:
Net investment income .............. .31 .60 .60 .65 .74 .23
Net realized and unrealized
gain (loss) on investments ..... (.05) .40 (.63) .72 .43 .15
Total from investment operations ... .26 1.00 (.03) 1.37 1.17 .38
Less distributions from:
Net investment income .......... (.31) (.60) (.60) (.65) (.74) (.23)
Realized capital gains ......... -- -- (.01) -- -- --
Change in net asset value .......... (.05) .40 (.64) .72 .43 .15
Net asset value, end of period ..... $13.07 $13.12 $12.72 $13.36 $12.64 $12.21
Total return (b) 1.97% 8.10% (.26%) 10.96% 9.98% 3.18%
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.68%(c) 4.71% 4.58% 4.95% 5.76% 6.57%(c)
Expenses, after expense reductions 1.00%(c) 1.00% .90% .61% .42% .25%(c)
Expenses, before expense reductions1.06%(c) 1.06% 1.04% 1.01% 1.12% 1.32%(c)
Portfolio turnover rate 4.84% 17.06% 6.87% 10.33% 32.15% 49.67%
Net assets
at end of period (000) $132,521 $136,742 $143,910 $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.
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% 1.71%(c)1.74%(c)
Portfolio turnover rate 4.84% 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.
Thornburg New Mexico Intermediate Municipal Fund
March 31, 1996 CUSIPS: Class A - 885-215-301
NASDAQ Symbols: Class A - THNMX
$575,000 Albuquerque Government Purpose Airport Revenue
Series 1987-A, 8.30% due 7/1/96 A1/A $581,992
225,000 Albuquerque Airport Revenue Ser. B, 8.40% due 7/1/00 A1/A+ 237,641
420,000 Albuquerque Mortgage Obligation Revenue Series B-2,
0% due 5/15/11 (Insured: FGIC) Aaa/AAA 141,200
50,000 Albuquerque Gross Receipts Tax Revenue, 6.20%
due 7/1/05 Aaa/AAA 53,420
1,280,000 Albuquerque Gross Receipts and Lodger's Tax, 0%
due 7/1/02 (Insured: FSA) Aaa/AAA 938,675
1,520,000 Albuquerque Gross Receipts and Lodger's Tax, 0%
due 7/1/03 (Insured: FSA) Aaa/AAA1,053,269
2,035,000 Albuquerque Gross Receipts and Lodger's Tax, 0%
due 7/1/05 (Insured: FSA) Aaa/AAA1,251,749
2,000,000 Albuquerque Gross Receipts and Lodger's Tax, 0%
due 7/1/12 (Insured: FSA) Aaa/AAA 762,620
155,000 Albuquerque Hospital Revenue, 7.20% due 7/1/97
(Escrowed to Maturity) Aaa/AAA 159,630
1,000,000 Albuquerque Hospital Revenue Series 1991-A, 6.375%
due 5/15/04 (St. Joseph's Health Care Project;
Insured: MBIA) Aaa/AAA1,080,520
2,000,000 Albuquerque Hospital Revenue Series 1992, 5.60%
due 8/1/99 (Insured: MBIA) Aaa/AAA2,069,880
335,000 Albuquerque Hospital Revenue Series A, 5.80% due 8/1/00
(Presbyterian Health Care Project; Insured: MBIA) Aaa/AAA 350,490
2,500,000 Albuquerque Hospital System Refunding Revenue Series
1992-A, 6.10% due 8/1/02 (Presbyterian Health Care
Project; Insured: MBIA) Aaa/AAA2,674,225
1,040,000 Albuquerque Hospital System Refunding Revenue Series
1992-B, 6.20% due 8/1/02 (Presbyterian Health Care Project;
Insured: MBIA) Aaa/AAA1,077,960
1,775,000 Albuquerque Hospital System Refunding Revenue Series 1992-B,
6.60% due 8/1/07 (Presbyterian Health Care Project;
Insured: MBIA) Aaa/AAA1,863,342
1,500,000 Albuquerque Hospital System Refunding Revenue Series 1993-B,
4.50% due 8/1/99 (Presbyterian Health Care Project;
Insured: MBIA) Aaa/AAA1,501,755
1,000,000 Albuquerque Water and Sewer System Revenue Refunding
Series B, 6.95% due 7/1/02 A1/AA 1,100,310
1,500,000 Albuquerque Water and Sewer Revenue, 7.00% due 7/1/03A1/AA 1,646,985
1,000,000 Albuquerque Water and Sewer Revenue, 6.70% due 7/1/98A1/AA 1,052,520
1,750,000 Albuquerque Water and Sewer Revenue Series 1990-C, 7.00%
due 7/1/05 NR/AA 1,908,043
600,000 Albuquerque Water and Sewer Revenue, 6.25% due 7/1/08A1/AA 629,070
1,240,000 Albuquerque MFHR Series 1991, 8.50% due 7/1/21, put 7/1/01
(Beach Apartments Project) NR/NR 1,269,115
2,995,000 Albuquerque MFHR Series 1994, 6.75% due 1/1/24, put 1/1/04
(Dorado Village Project) NR/AAA 2,823,416
250,000 Albuquerque Refuse Removal and Disposal Rev., 6.80%
due 7/1/98 (Insured: AMBAC) Aaa/AAA 263,750
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 251,890
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 295,133
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 311,286
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 173,970
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
155,000 Albuquerque Special Assessment District No. 219 Series B,
5.50% due 7/1/00 (Water and Sewer Improvement Project;
LOC: Sumitomo Bank) NR/A 155,152
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 195,213
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 404,992
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 4,602,690
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 2,290,869
500,000 Bloomfield Gross Receipts Tax Revenue Series 1992-B, 6.50%
due 8/1/07 Baa/NR 510,540
1,750,000 Dona Ana County Gross Receipts Tax Refunding and Improvement
Series 1993, 5.875% due 6/1/09 (Insured: Asset Guar.)NR/AA 1,812,563
1,500,000 Dona Ana County Gross Receipts Tax, 6.00% due 6/1/14
(Asset Guarantee) NR/AA 1,490,010
330,000 Dona Ana County Subordinated Gross Receipts Tax Revenue,
6.125% due 6/1/03 NR/NR 324,067
260,000 Dona Ana County Subordinated Gross Receipts Tax Revenue,
6.25% due 6/1/04 NR/NR 255,416
510,000 Espanola Gross Receipts Tax Revenue, 7.10% due 3/1/02
(Insured: MBIA) Aaa/AAA 543,772
550,000 Espanola Gross Receipts Tax Revenue, 7.20% due 3/1/03
(Insured: MBIA) Aaa/AAA 587,433
525,000 Espanola Gross Receipts Tax Revenue, 6.25% due 3/1/00
(Insured: MBIA) Aaa/AAA 545,528
1,100,000 Farmington Pollution Control Revenue, 3.75% due 9/1/24,
put 4/1/96 (daily demand notes)(LOC: Barclay's Bank)A-1/VMIG1,100,000
750,000 Farmington Utility System Refunding Revenue, 5.20%
due 5/15/00 (Insured: FGIC) Aaa/AAA 767,835
1,000,000 Farmington Utility System Refunding Revenue, 5.40%
due 5/15/02 (Insured: FGIC) Aaa/AAA1,033,610
1,500,000 Gallup Pollution Control Rev. Ref. Series 1992, 6.45%
due 8/15/06 (Insured: MBIA) Aaa/AAA1,630,725
500,000 Gallup Sales Tax Revenue Sinking Fund Bonds, 6.75%
due 6/1/06 (Insured: MBIA) Aaa/AAA 535,240
1,000,000 Guam Ltd. Obligation Highway Series 1992-A, 5.50% due 5/1/99
(Insured: Capital Guaranty) NR/AAA 1,032,570
280,000 Hidalgo County Municipal School District of Lordsburg,
6.875% due 7/1/00 NR/NR 289,047
300,000 Hidalgo County Municipal School District of Lordsburg,
6.875% due 7/1/01 NR/NR 309,537
315,000 Hidalgo County Municipal School District of Lordsburg,
6.875% due 7/1/02 NR/NR 324,122
2,500,000 Jicarilla Apache Tribe Tribal Refunding Revenue Bonds,
7.75% due 7/1/05 NR/A 2,546,150
1,175,000 Las Cruces Gross Receipts Refunding Revenue,
5.45% due 12/1/99 A/A 1,211,120
625,000 Las Cruces Gross Receipts Refunding Revenue,
5.85% due 12/1/01 A/A 658,469
1,500,000 Las Cruces Gross Receipts Refunding Revenue Series
1992, 6.25% due 12/1/05 A/A 1,587,780
1,200,000 Las Cruces Joint Utility Refunding and Improvement
Revenue, 6.50% due 7/1/07 A1/NR 1,299,684
1,160,000 Las Cruces Municipal Sales Tax Revenue Series 1991,
6.50% due 12/1/06 A/NR 1,222,686
380,000 Las Cruces Gross Receipts Tax Revenue Series 1995,
6.00% due 6/1/01 South Central Solid Waste
Authority Project) NR/A 398,156
85,000 Lordsburg Gross Receipts and Lodgers Tax Revenue,
8.125% due 12/1/97 NR/NR 89,424
230,000 Lordsburg Gross Receipts and Lodgers Tax Revenue,
8.625% due 12/1/02 NR/NR 245,576
1,150,000 Lordsburg Pollution Control Revenue, 6.50% due 4/1/13
(Phelps Dodge Project) A2/A- 1,189,146
500,000 Los Alamos County Utility System Revenue Refunding
Series A, 6.90% due 1/1/97 Baa1/BBB+511,460
750,000 Los Alamos County Utility System Revenue Refunding
Series 1986-A, 7.10% due 1/1/98 Baa1/BBB+782,873
2,445,000 Los Alamos County Utility System Revenue Refunding
Series A, 6.00% due 7/1/08 (Insured: FSA) Aaa/AAA2,565,025
350,000 Milan General Obligation Sanitary Sewer Series 1994,
7.00% due 9/1/13 NR/NR 369,541
3,245,000 New Mexico Educational Assistance Foundation Revenue,
6.70% due 4/1/02 (Insured: AMBAC) Aaa/AAA3,438,467
1,150,000 New Mexico Educational Assistance Foundation Revenue,
6.20% due 12/1/01 Aaa/NR 1,215,010
815,000 New Mexico Educational Assistance Foundation Revenue,
6.45% due 12/1/04 Aaa/NR 861,479
1,565,000 New Mexico Educational Assistance Foundation Revenue,
6.85% due 12/1/05 A/NR 1,598,820
140,000 New Mexico Student Loan Revenue, 5.55% due 12/1/01 A/NR 141,957
2,755,000 New Mexico Educational Assistance Foundation Revenue,
6.65% due 3/1/07 Aaa/NR 2,714,557
985,000 New Mexico MFA MFHR Series 1991-C, 6.75% due 7/1/11 NR/AAA 1,008,807
1,420,000 New Mexico MFA MFHR Series 1991-C, 6.75% due 7/1/11 NR/AAA 1,454,321
85,000 New Mexico MFA SFMR Series A, 7.00% due 7/1/14 A1/A+ 61,124
95,000 New Mexico MFA SFMR Series C, 7.80% due 7/1/99
(Insured: FGIC) Aaa/AAA 98,338
95,000 New Mexico MFA SFMR Series A, 6.50% due 3/1/98 AA-/NR 96,844
185,000 New Mexico MFA SFMR Series A-1, 5.30% due 7/1/96 Aa/AA 185,575
675,000 New Mexico MFA SFMR Series A-1, 6.05% due 1/1/00 Aa/AA 692,226
265,000 New Mexico MFA SFMR Series A-2, 6.20% due 1/1/01 Aa/AA 273,000
670,000 New Mexico MFA SFMR Series 1992-A-1, 6.30% due 1/1/02Aa/AA 692,733
5,245,000 New Mexico MFA SFMR Series 1992-A-1, 6.85% due 7/1/10Aa/AA 5,440,114
1,185,000 New Mexico MFA SFMR Series 1992-A-1, 6.90% due 7/1/08NR/AAA 1,211,994
1,375,000 New Mexico State Severance Tax Refunding Series 1992-C,
5.30% due 7/1/97 Aa/AA 1,400,314
1,000,000 New Mexico State Severance Tax Refunding Series 1992-C,
5.60% due 7/1/02 Aa/AA 1,024,800
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 1,322,148
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 1,639,998
225,000 New Mexico Equipment Loan Council Hospital Revenue,
7.90% due 6/1/11 (San Juan Regional Medical Center,
Inc. Project) A/NR 251,424
575,000 New Mexico Equipment Loan Council Hospital Revenue,
7.80% due 6/1/06 (San Juan Regional Medical Center,
Inc. Project) A/NR 639,153
245,000 New Mexico State University Revenue, 7.00% due 11/1/96
(Escrowed to Maturity) Aaa/AAA 250,015
310,000 New Mexico State University Revenue, 5.85% due 4/1/96A1/AA 310,040
390,000 New Mexico State University Revenue, 5.85% due 4/1/99A1/AA 405,089
380,000 New Mexico State University Revenue, 5.85% due 4/1/00A1/AA 397,054
335,000 New Mexico State University Revenue, 5.85% due 4/1/01A1/AA 351,854
1,050,000 Northern Mariana Islands Ports Authority Airport Rev.
Series 1987-B, 6.90% due 10/1/01 A2/NR 1,078,549
555,000 Northern Mariana Islands Ports Authority Airport Rev.
Series 1987-B, 7.00% due 10/1/02 A2/NR 570,135
750,000 Puerto Rico Public Improvement Revenue, 6.60%
due 7/1/04 Baa1/A 839,572
1,300,000 Puerto Rico Highway and Transportation Authority
Highway Revenue, 5.70% due 7/1/98 Baa1/A 1,338,350
2,000,000 Puerto Rico Highway and Transportation Authority Highway
Revenue, 5.00% due 7/1/02 Baa1/A 2,005,180
2,000,000 Puerto Rico Public Building Authority Revenue,
6.10% due 7/1/00 Baa1/A 2,105,120
1,500,000 Puerto Rico Electric Power Revenue Refunding
Series 1992-Q, 5.70% due 7/1/00 Baa1/A 1,555,950
100,000 Questa Independent School Dist. #9 G.O. School Bldg.
Series 7/1/87, 8.50% due 10/1/00 NR/NR 109,950
110,000 Rio Grande Natural Gas Association Natural Gas System
Revenue, 4.70% due 7/1/98 Baa1/BBB+110,530
150,000 Rio Grande Natural Gas Association Natural Gas System
Revenue, 5.00% due 7/1/00 Baa1/BBB+149,137
375,000 Rio Rancho Gross Receipts Tax Revenue Series 1995 A,
5.50% due 12/1/00 (Insured: CGIC) Aaa/AAA 388,860
395,000 Rio Rancho Gross Receipts Tax Revenue Series 1995 A,
5.50% due 12/1/01 (Insured: CGIC) Aaa/AAA 410,346
420,000 Rio Rancho Gross Receipts Tax Revenue Series 1995 A,
5.50% due 12/1/02 (Insured: CGIC) Aaa/AAA 436,342
440,000 Rio Rancho Gross Receipts Tax Revenue Series 1995 A,
5.50% due 12/1/03 (Insured: CGIC) Aaa/AAA 456,398
1,000,000 Rio Rancho Water & Wastewater Series 1995 A, 6.50%
due 5/15/06 (Insured: FSA) Aaa/AAA1,102,110
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 A/NR 1,147,650
115,000 Sandoval County Gross Receipts Tax Refunding Revenue
Series 1992, 7.00% due 11/1/07 Baa1/NR 123,180
125,000 Sandoval County Gross Receipts Tax Refunding Revenue
Series 1992, 7.00% due 11/1/08 Baa1/NR 134,681
135,000 Sandoval County Gross Receipts Tax Refunding Revenue
Series 1992, 7.00% due 11/1/09 Baa1/NR 145,533
145,000 Sandoval County Gross Receipts Tax Refunding Revenue
Series 1992, 7.00% due 11/1/10 Baa1/NR 155,734
340,000 Santa Fe County Office and Training Facilities Project
Revenue Series 1990, 9.00% due 7/1/01
(Escrowed to Maturity) NR/AAA 409,802
356,000 Santa Fe County Office and Training Facilities Project
Revenue Series 1990, 9.00% due 1/1/02
(Escrowed to Maturity) NR/AAA 433,170
372,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 7/1/02 (Escrowed to Maturity) NR/AAA 458,691
406,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 7/1/03 (Escrowed to Maturity) NR/AAA 510,525
443,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 7/1/04 (Escrowed to Maturity) NR/AAA 566,096
626,000 Santa Fe County Office and Training Facilities Project Revenue
Series 1990, 9.00% due 1/1/08 (Escrowed to Maturity) NR/AAA 834,502
500,000 Santa Fe Gross Receipts Tax Revenue & Improvement,
6.35% due 6/1/02 A1/AA 523,010
335,000 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 336,879
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 1,015,960
250,000 Santa Fe Public School District, 5.20% due 6/15/98 A1/NR 255,635
1,900,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/02
(Insured: FGIC) Aaa/AAA1,389,090
1,945,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/03
(Insured: FGIC) Aaa/AAA1,343,023
1,945,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/04
(Insured: FGIC) Aaa/AAA1,253,475
1,895,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/05
(Insured: FGIC) Aaa/AAA1,132,016
500,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/06
(Insured: FGIC) Aaa/AAA 276,865
1,945,000 Santa Fe Improvement Revenue Series 1992-A, 0% due 7/1/11
(Insured: FGIC) Aaa/AAA 732,818
862,284 Santa Fe Single Family Mortgage Revenue Series 1991,
8.45% due 12/1/11 Aa/NR 910,425
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 208,693
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 223,908
285,000 Socorro Health Facilities Refunding Revenue, 6.00% due 4/1/08,
(Evangelical Lutheran Good Samaritan Project;
Insured: AMBAC) Aaa/AAA 298,153
1,425,000 Taos County Local Hospital Gross Receipts Tax Revenue Series 1992,
6.125% due 12/1/01 (Insured: Asset Guaranty) NR/AA 1,507,536
315,000 Torrance County Environmental Revenue Series 1992,
6.875% due 6/1/03 NR/NR 320,191
100,000 University of New Mexico Higher Educational Revenue,
7.50% due 6/1/00 A1/AA 111,134
500,000 U.S. Virgin Islands Public Finance Authority,
7.70% due 10/1/04 Baa/BBB 543,910
1,000,000 U.S. Virgin Islands Public Finance Authority Revenue
Refunding Series A, 6.90% due 10/1/01 NR/NR 1,053,520
330,000 U.S. Virgin Islands Public Finance Authority, Series 1992-A,
7.00% due 10/1/02 NR/NR 349,559
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 1,344,938
3,000,000 U.S. Virgin Islands Water & Power Authority Series A,
7.40% due 7/1/11 NR/NR 3,196,920
1,385,000 Western New Mexico University System Revenue Series 1995,
7.75% due 6/15/19 Baa/BBB1,492,698
TOTAL INVESTMENTS (Cost $125,934,166)* $130,516,601
*Cost for Federal income tax purposes is $125,971,253.
+Credit ratings are unaudited.
See notes to financial statements.
Thornburg Limited Term Municipal Fund - National Portfolio.
LTMFX is an open end mutual fund which invests in a laddered portfolio of
municipal obligations from throughout the U.S. The Fund maintains an average
maturity of 5 years or less.
Thornburg Limited Term Municipal Fund - California Portfolio
LTCAX, a single state companion portfolio to LTMFX, offers California investors
double tax-free* yields in a laddered, short maturity portfolio. The Fund has an
average maturity of 5 years or less.
Thornburg Intermediate Municipal Fund - THIMX is an open end mutual fund which
invests in a laddered portfolio of municipal obligations from throughout the
U.S. The Fund has an average maturity of 10 years or less.
Thornburg Florida Intermediate Municipal Fund. Thornburg Florida Intermediate
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balanced approach to double tax-free* yields. The Fund has an average maturity
of 10 years or less. Thornburg New Mexico Intermediate Municipal Fund. THNMX, a
single state companion fund to THIMX, offers New Mexico investors a balanced
approach to double tax-free* yields. The Fund has an average maturity of 10
years or less.
Thornburg Limited Term U.S. Government Fund. LTUSX is an open end mutual
fund which invests in short to intermediate obligations issued by the U.S.
Government, its agencies or instrumentalities**. It has an average
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Thornburg Limited Term Income Fund. THIFX is an open end mutual fund which
invests in a wide variety of taxable, investment grade, short to intermediate
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is also suitable for your IRA, Keogh Plan, Pension Plan, or Profit Sharing Plan.
Thornburg Value Fund. A mutual fund that invests primarily in domestic equities
selected on a compelling value basis using traditional fundamental research
evaluation methods.
