Thornburg Florida
Intermediate Municipal Fund
Thornburg
Florida Municipal
as of 3/31/97 Fund - A Shares
SEC Yield 4.61%
Taxable Equiv. Yield 7.65%
NAV $11.88
Max. Offering Price $12.31
as of 3/31/97
1 Year 1.46%
3 Year 4.80%
Since Inception 3.51%
Inception Date (2/1/94)
The taxable equivalent yield assumes a 39.6% marginal federal tax rate and
a 0.2% 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 (_) (505) 984-0200
Dear Shareholder:
I am pleased to present the Semi-Annual Report for the Thornburg Florida
Intermediate Municipal Fund for the period ending March 31, 1997. This was a
period of sharply fluctuating interest rates. The bond bulls insist that a tepid
U.S. economy is on the brink of weakness. The bond bears counter that our
current economic vigor will persist for the foreseeable future. If you were with
us for the entire period, you received dividends of 27.7 cents per share. If you
reinvested your dividends, you received 28 cents per share.
Your Thornburg Florida Intermediate Municipal Fund portfolio currently holds
over 50 municipal obligations from Florida borrowers. Approximately 83% of the
bonds are rated A or better by one of the major rating agencies. As you know, we
"ladder" the maturities of the bonds in your portfolio so that some bonds are
scheduled to mature at par during each of the coming years. Today, your fund's
weighted average maturity is approximately 6.7 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 = 14% year 2= 14%
2 to 4 years = 21% year 4= 35%
4 to 6 years = 12% year 6= 47%
6 to 8 years = 16% year 8= 63%
8 to 10 years = 17% year 10= 80%
10 to 12 years = 7% year 12= 87%
12 to 14 years = 6% year 14= 93%
14 to 16 years = 7% year 16= 100%
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
Florida Intermediate Municipal Fund continued to receive "A" letter grades for
one and three year performance relative to other intermediate maturity municipal
bond funds through March 31, 1997.* These rankings, which were published in The
Wall Street Journal, reflect total returns in the top 20% of all short term
municipal bond funds for those periods. Your fund has also earned Morningstar's
4 star overall rating.**
Strong forces are acting in opposite ways on U.S. interest rates at this time.
The U.S. economy is generally firm and the economies of many developing
countries are growing as well. Americans have been net sellers of individual
municipal and U.S. government bonds, preferring instead to pour money into
stocks, money market funds and, recently, emerging market debt funds. By
themselves, these forces should put upward pressure on our interest rates.
However, most other developed countries have sluggish economies, much lower
interest
*Source: The Wall Street Journal, April 4, 1997. Performance data are supplied
by Lipper Analytical Services, Inc., and reflect performance for the 1and 3 year
periods ending March 31, 1997. An "A" ranking reflects total returns in the top
20% of all funds within the short term municipal objective, as defined by The
Wall Street Journal. The average maturity and average quality of the funds
within the short municipal objective may differ. At March 31, 1997, 75 and 66
intermediate municipal funds reported 1-year and 3-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 the Fund's
income may be subject to the federal alternative minimum tax.
l e t t e r t o s h a r e h o l d e r s (continued)
rates than ours, and currencies that have been depreciating relative to the U.S.
dollar. As a result, foreign money has been pouring into the U.S. bond market,
lifting bond prices and lowering yields from the levels that would otherwise
exist. In the last 2 years, foreign purchases of U.S. Treasury bonds have
accounted for more than 100% of the net issuance of Treasury bonds, up from an
average of approximately 20% between 1980-1994. The graph below illustrates this
trend, which may only now be subsiding. 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.
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.
Thank you for investing in Thornburg Florida Intermediate Municipal Fund.
Sincerely,
Brian J. McMahon
Managing Director
**Morningstar propriety rating reflects historical risk adjusted performance as
of 3/31/97. Ratings are subject to change every month. Funds with at least three
years of performance history are assigned ratings from one star (lowest) to five
star (highest). Morningstar overall ratings are calculated from the funds'
three-, five-, and ten year average annual returns and a risk factor that
reflects fund performance relative to three month Treasury bill returns. 10% of
the funds in an investment category receive five stars, 22.5% receive four
stars. THIMX is ranked 4-Stars for the 3 year period and 5-Stars for the 5 year
period ending 3/31/97. At 3/31/97, there were 1237 bond funds with 3-year
ratings, 601 with 5-year ratings in Morningstar's Municipal Single State Long
category.
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
March 31, 1997
(unaudited)
ASSETS
Investments, at value (cost $21,751,652) $22,075,357
Cash 120,881
Interest receivable 401,668
Receivable for fund shares sold 48,492
Prepaid expenses and other assets 36,532
TOTAL ASSETS 22,682,930
LIABILITIES
Payable for investment advisor 42,394
Dividends payable 44,538
Accounts payable and accrued expenses 47,831
TOTAL LIABILITIES 134,763
NET ASSETS $22,548,167
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($22,548,167 applicable to 1,898,163 shares of
beneficial interest outstanding - Note 4) $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
Six Months Ended March 31, 1997
INVESTMENT INCOME
Interest income (net of premium amortized
of $24,643) $ 613,706
EXPENSES
Investment advisory fees (Note 3) 56,631
Administration fees (Note 3) 14,158
Distribution and service fees (Note 3)
Class A Shares 25,972
Custodian fees 10,170
Transfer agent fees 9,484
Professional fees 4,064
Other expenses 3,677
TOTAL EXPENSES 124,156
Less:
Expenses deferred by investment adviser (Note 3) (36,259)
NET EXPENSES 87,897
NET INVESTMENT INCOME 525,809
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 5)
Net realized loss on investments sold (2,455)
Decrease in unrealized appreciation
of investments (48,174)
NET REALIZED AND UNREALIZED
LOSS ON INVESTMENTS (50,629)
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 475,180
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
(unaudited)
Six Months Year Ended
Ended March 31, 1997 September 30, 1996
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $525,809 $907,536
Net realized loss on investments sold (2,455) (32,173)
Increase (Decrease) in unrealized
appreciation of investments (48,174) 66,806
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 475,180 942,169
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (525,809) (893,236)
Class C Shares -- (14,300)
FUND SHARE TRANSACTIONS -- (Note 4)
Class A Shares 3,097,537 4,639,271
Class C Shares -- (254,264)
NET INCREASE IN NET ASSETS 3,046,908 4,419,640
NET ASSETS:
Beginning of period 19,501,259 15,081,619
End of period $22,548,167 $19,501,259
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. Currently class specific expenses
of the Fund were limited to distribution fees, administration fees and certain
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 of the fund, the Trust
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 under the Trust 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 Trust 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 six months ended March 31, 1997 represent
exempt interest dividends which are excludable by shareholders from gross income
for Federal income tax purposes.
When-Issued and Delayed Delivery Transactions: The Trust may engage in
when-issued or delayed delivery transactions. To the extent the Trust 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
Trust 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 Trust 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.
n o t e s t o f i n a n c i a l s t a t e m e n t s (continued)
Thornburg Florida Intermediate Municipal Fund
n o t e s t o f i n a n c i a l s t a t e m e n t s (continued)
Thornburg 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 six months ending March
31, 1997, 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, also the Trust 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 six months ended March 31,
1997, the Adviser voluntarily deferred certain operating expenses amounting to
$36,259. These expenses may be repaid to the Adviser by the Fund, however such
repayment will depend upon the overall level of Fund's expenses for the entire
fiscal year ending September 30, 1997.
The Trust has an underwriting agreement with Thornburg Securities Corporation
(the "Distributor"), which acts as the Distributor of Fund shares. For the six
month ended March 31, 1997, the Distributor earned commissions aggregating
$8,661 from the sale of Class A shares.
Pursuant to a Service Plan, under Rule 12b-1 of the Investment Company Act of
1940, the Trust 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.
Certain officers and trustees of the Trust are also officers and/or directors
of the Adviser and Distributor. The compensation of unaffilliated directors
of the Trust is borne by the Trust.
n o t e s t o f i n a n c i a l s t a t e m e n t s (continued)
Thornburg Florida Intermediate Municipal Fund
Note 4 - SHARES OF BENEFICIAL INTEREST:
At March 31, 1997, there were an unlimited number of shares of beneficial
interest authorized, and capital paid-in agregated $22,367,074.
Transactions in shares of beneficial interest were as follows:
Six Months Ended Year Ended
March 31, 1997 to September 30, 1996
- --------------------------------------------------------------------------------
Shares Amount Shares Amount
Class A Shares
Shares sold 2,205,517 $26,347,084 2,251,002 $26,896,251
Shares issued to
shareholders
in reinvestment of
distributions 20,589 245,883 35,595 433,132
Shares repurchased
(1,969,621) (23,495,430) (1,897,693) (22,690,112)
Net Increase 256,485 $3,097,537 388,904 $4,639,271
Class C Shares
Shares sold -- -- 34,572 $413,875
Shares issued to
shareholders
in reinvestment of
distributions -- -- 876 10,490
Shares repurchased -- -- (57,317) (678,629)
Net Decrease -- -- (21,869) ($254,264)
Note 5 - SECURITIES TRANSACTIONS
For the six month ended March 31, 1997, the Fund had purchase and sale
transactions (excluding short-term securities) of $12,929,024 and $10,307,623,
respectively.
The cost of investments for Federal income tax purposes is $21,757,058. At
March 31, 1997, net unrealized appreciation of investments was $323,705,
resulting from $372,089 gross
unrealized appreciation and $48,384 gross unrealized depreciation.
Accumulated net realized losses from securities transactions included in net
assets at March 31, 1997 aggregated $142,613.
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
<TABLE>
Per share operating performance
(for a share outstanding
throughout the period)
<CAPTION>
Period from
Six Months Feb.1, 1994 (a)
Ending Year Ended September 30, September 30,
1997 1996 1995 1994
<S> <C> <C> <C> <C>
Class of Shares: A A A A
Net asset value, beginning of period $11.88 $11.83 $11.54 $12.06
Income from investment
operations:
Net investment income .28 .57 .63 .40
Net realized and unrealized
gain (loss) on investments -- .05 .29 (.52)
Total from investment operations .28 .62 .92 (.12)
Less distributions from:
Net investment income (.28) (.57) (.63) (.40)
Change in net asset value -- .05 .29 (.52)
Net asset value, end of period $11.88 $11.88 $11.83 $11.54
Total Return (b) 2.34% 5.37% 8.22% (.95%)
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.64%(c) 4.80% 5.41% 5.09%(c)
Expenses, after expense reductions .78%(c) .61% .38% .25%(c)
Expenses, before expense reductions 1.10%(c) 1.34% 1.44% 1.95%(c)
Portfolio turnover rate 48.04% 77.12% 89.60% 19.94%
Net assets at end of period (000) $22,548 $19,501 $14,822 $8,076
<FN>
(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.
</FN>
</TABLE>
<TABLE>
Thornburg Florida Intermediate Municipal Fund
<CAPTION>
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
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class of Shares: C** B* C B C
Net asset value, beginning of period $11.86 $11.55 $11.54 $11.72 $11.72
Income from investment operations:
Net investment income .31 .55 .55 .05 .05
Net realized and unrealized
gain (loss) on investments (.02) .28 .32 (.17) (.18)
Total from investment operations .29 .83 .87 (.12) (.13)
Less distributions from:
Net investment income (.31) (.55) (.55) (.05) (.05)
Change in net asset value (.02) .28 .32 (.17) (.18)
Net asset value, end of period $11.84 $11.83 $11.86 $11.55 $11.54
Total return (b) 2.47% 7.55% 7.74% (1.02%) (1.10%)
Ratios/Supplemental Data Ratios to average net assets:
Net investment income 4.46%(c) 4.69% 4.65% 4.80%(c) 4.89%(c)
Expenses, after expense reductions .97%(c) 1.08% 1.08% 1.05%(c) 1.10%(c)
Expenses, before expense reductions 6.03%(c) 5.35% 19.08% 7.80%(c) 40.31%(c)
Portfolio turnover rate 77.12% 89.60% 89.60% 19.94% 19.94%
Net assets
at end of period (000) $0 $0 $259 $20 $109
<FN>
(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.
</FN>
</TABLE>
<TABLE>
s c h e d u l e o f i n v e s t m e n t s
<CAPTION>
Thornburg Florida Intermediate Municipal Fund
March 31, 1997 CUSIPS: Class A - 885-215-707; NASDAQ Symbols: Class A - THFLX
<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 209,312
225,000 Brevard County Health Facilities Authority, 5.40% due 10/1/03 ......................... A1/NR 226,962
835,000 Brevard County Tourist Development Tax Revenue Series 1993, 6.325% due 3/1/03
(Florida Marlins' Training Facility Project) .......................................... NR/NR 853,963
300,000 Broward County Education Facilities Authority Series 1994, 5.60% due 4/1/04
(Nova Southeastern University Project; Connie Lee guaranteed) ......................... NR/AAA 309,450
570,000 Broward County Health Facilities Authority, 7.00% due 8/15/11
(North Beach Hospital Project; Insured: MBIA) ......................................... Aaa/AAA 621,066
725,000 Broward County Housing Finance Authority Home Mortgage Revenue, 0% due 4/1/14 ......... A1/BBB 129,362
200,000 Cape Coral Special Obligation Wastewater Revenue, 5.625% due 7/1/00
(Green Area Project; Insured: FSA) .................................................... Aaa/AAA 205,560
300,000 Cape Coral Special Obligation Wastewater Revenue, 5.75% due 7/1/01
(Green Area Project; Insured: FSA) .................................................... Aaa/AAA 310,932
150,000 Cape Coral Special Obligation Wastewater Revenue, 6.00% due 7/1/03
(Green Area Project; Insured: FSA) .................................................... Aaa/AAA 157,870
690,000 Cape Coral Special Obligation Wastewater Revenue, 6.10% due 7/1/05
(Green Area Project; Insured: FSA) .................................................... Aaa/AAA 718,014
900,000 Clermont Water & Sewer Revenue & Refunding, 5.00% due 12/1/00 ......................... NR/NR 900,837
810,000 Dade County Guaranteed Entitlement Revenue, 9.75% due 2/1/03, pre-refunded 2/1/00 @ 103,
(Insured: AMBAC) ...................................................................... Aaa/AAA 911,882
230,000 Dade County Health Facilities Revenue - Catholic Health, 7.50% due 8/15/00
(LOC: Allied Irish Bank) .............................................................. A1/ NR 243,023
85,000 Duval County Single Family Housing Revenue, 0% due 5/15/16, put 11/15/97 .............. Aaa/AAA 79,874
700,000 Escambia County Health Facilities Revenue, 8.70% due 10/1/14 .......................... NR/BBB+ 751,051
130,000 Escambia County Housing Finance Authority Single Family Mortgage Series C,
7.50% due 10/1/12 ..................................................................... Aaa/NR 135,710
175,000 Escambia Housing Finance Authority, 6.15% due 4/1/00 (Insured: GNMA) .................. Aaa/AAA 179,203
985,000 Florida Housing Finance Authority Series 94-B, 5.70% due 10/1/24, mandatory put 10/1/04
(Plantation Colony Project; FNMA Guaranteed) .......................................... NR/AAA 1,015,269
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 756,015
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 1,011,740
380,000 Florida State Housing Finance Agency Revenue, 5.03% due 12/1/04 (Insured: AMBAC) ...... Aaa/AAA 379,259
60,000 Florida Housing Finance Authority Capital Appreciation Residential Mortgage
Revenue, 0% due 7/15/01 (LOC: Citibank) ............................................... NR/AA 38,090
1,000,000 Florida Housing Development Authority, 6.25% due 12/1/06 (Hammock's Place Project) .... NR/AAA 1,039,610
215,000 Florida Housing Finance Authority, 7.65% due 6/1/99 (GNMA guaranteed) ................. Aaa/NR 221,347
1,000,000 Florida State General Obligation Highway Revenue, 5.80% due 10/1/00 ................... Aa/AA 1,015,890
220,000 Florida State Board of Education Series D, 6.20% due 5/1/07, Escowed to Maturity (Insured: MBIA)Aaa/AAA 224,145
255,000 Florida State Certificate of Participation, 6.05% due 11/15/97
(Consolidated Equipment Financing Program Project) .................................... A/A+ 258,238
720,000 Florida State Certificate of Participation, 6.05% due 5/15/97
(Consolidated Equipment Financing Program Project) .................................... A/A+ 721,850
345,000 Florida State Certificate of Participation, 6.10% due 5/15/98
(Consolidated Equipment Financing Program Project) .................................... A/A+ 352,262
200,000 Florida State Department Corrections Certificate of Participation Okeechobee Correctional,
5.90% due 3/1/04 (Insured: AMBAC) ..................................................... Aaa/AAA 210,406
300,000 Hernando County Industrial Development Revenue, 8.50% due 12/1/14
(Florida Crushed Stone Project) ....................................................... NR/NR 331,452
100,000 Hillsborough County IDA, 3.70% due 9/1/25, put 4/01/97 (Daily Demand Notes) ........... AA-/Aa2 100,000
1,000,000 Hillsborough County Industrial Development Authority, 5.50% due 8/15/06
(University Community Hospital Inc. Project; Insured: MBIA) ........................... Aaa/AAA 1,024,200
115,000 Indian River County Capital Improvement Revenue Refunding, 8.75% due 9/1/97 (Insured: MBIA) Aaa/AAA 117,174
600,000 Jacksonville Health Facilities Industrial Development Revenue, 8.00% due 12/1/15
(National Benevolent Association Project) ............................................. Baa1/BBB+ 666,132
150,000 Jacksonville Health Facilities Industrial Development Revenue, 5.70% due 12/1/04
(National Benevolent Association Project) ............................................. Baa1/NR 151,284
100,000 Jacksonville Health Facilities Industrial Development Revenue, 6.00% due 12/1/09
(National Benevolent Association Project) ............................................. Baa1/NR 99,639
100,000 Jacksonville Health Facilities Industrial Development Revenue, 6.05% due 12/1/10
(National Benevolent Association Project) ............................................. Baa1/NR 99,567
375,000 Jacksonville Housing Revenue Refunding, 5.125% due 9/20/04
(Windmere Manor Apartments Project; GNMA guaranteed) .................................. NR/AAA 376,958
250,000 Jacksonville Loan Obligation Water & Sewer Revenue, 5.30% due 4/1/99 (Insured: MBIA) .. Aaa/AAA 250,158
100,000 Jacksonville Loan Obligation Custody Receipts, 6.10% due 4/1/01 (Insured: MBIA) ....... Aaa/AAA 100,112
230,000 Miramar Wastewater Improvement Assessment Revenue, 6.00% due 10/1/02 (Insured: FGIC) .. Aaa/AAA 242,183
50,000 Okaloosa County Custody Receipts, 6.10% due 4/1/02 (Insured: MBIA) .................... Aaa/AAA 50,064
410,000 Orange County Housing Finance Authority, 6.10% due 10/1/05
(GNMA/FNMA guaranteed) ................................................................ Aaa/AAA 417,446
115,000 Osceola County Health Facilities Revenue Series 1994, 5.75% due 5/1/04
(Evangelical Good Samaritan Project; Insured: AMBAC) .................................. Aaa/AAA 119,600
195,000 Palm Bay Lease Revenue Refunding, 6.40% due 9/1/04
(Florida Education and Research Foundation Project) ................................... Baa/NR 199,836
205,000 Palm Bay Lease Revenue Refunding, 6.50% due 9/1/05
(Florida Education and Research Foundation Project) ................................... Baa/NR 209,106
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+ 527,854
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+ 277,560
900,000 Pinellas County Housing Finance Authority Series 1994-A, 5.75% due 8/1/01
(GNMA/FNMA guaranteed) ................................................................ Aaa/NR 915,840
800,000 Pinellas County Educational Facilities Authority Revenue , 8.00% due 2/1/11
(Clearwater Christian College Project) ................................................ NR/NR 796,560
500,000 Port St. Lucie Utility System Revenue Series 1996-A, 0% due 9/1/07 (Insured FGIC) ..... Aaa/AAA 291,130
500,000 Seminole County School Board Certificate of Participation, 5.75% due 7/1/06 (Insured: MBIA) Aaa/AAA 523,310
TOTAL INVESTMENTS $21,751,652 $22,075,357
<FN>
* The cost for Federal income taxes is the same.
+Credit ratings are unauduted.
See notes to financial statements.
</FN>
</TABLE>
Thornburg Family of Funds
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 has 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
Fund, a single state companion fund to THIMX, offers Florida investors a
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 maturity of 5 years or less. It is
particularly suitable for your IRA, Keogh Plan, Pension Plan, or Profit Sharing
Plan. 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
obligations. The Fund keeps a weighted average maturity of 5 years or less. It
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.
