33-14905
Filed with the Securities and Exchange Commission
November 20, 1998
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 35 [x]
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 38 [x]
THORNBURG INVESTMENT TRUST (formerly "Thornburg Income Trust"
(Exact Name of Registrant as Specified in Charter)
119 East Marcy Street, Suite 202, Santa Fe, NM 87501
(Address of Principal Executive Office) (Zip Code)
Registrant's Telephone Number, including Area Code
(505) 984-0200
H. Garrett Thornburg, Jr.
119 East Marcy Street, Suite 202
Santa Fe, New Mexico 87501
(Name and Address of Agent for Service
It is proposed that this filing will become effective (check
appropriate box):
[x] Immediately upon filing pursuant to paragraph (b) of Rule 485
[ ] On (date) pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)
[ ] On [date] pursuant to paragraph (a)(1)
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ] On [date] pursuant to paragraph (a)(2)
The Registrant has registered an indefinite number or amount of
securities in accordance with Rule 24 under the Securities Act of
1933, and filed a Rule 24f-2 Notice for the fiscal year ended
September 30, 1997 on December 17, 1997, and filed a Rule 24-f-2 Notice for
the fiscal year ended June 30, 1998 on August 26, 1998.
<PAGE>
THORNBURG INVESTMENT TRUST
(i) Thornburg Limited Term U.S. Government Fund
(ii) Thornburg Intermediate Municipal Fund
(iii) Thornburg New Mexico Intermediate Municipal Fund
(iv) Thornburg Texas Intermediate Municipal Fund
(v) Thornburg Limited Term Income Fund
(vi) Thornburg Alabama Intermediate Municipal Fund
(vii) Thornburg Arizona Intermediate Municipal Fund
(viii) Thornburg Pennsylvania Intermediate Municipal Fund
(ix) Thornburg Florida Intermediate Municipal Fund
(x) Thornburg Tennessee Intermediate Municipal Fund
(xi) Thornburg Utah Intermediate Municipal Fund
(xii) Thornburg Value Fund
(xiii) Thornburg Global Value Fund
(xiv) Thornburg New York Intermediate Municipal Fund
CONTENTS
Facing Sheet
Contents
Cross Reference Sheets (Thornburg Limited Term U.S. Government
Fund [Class A shares and Class C shares];
Thornburg Limited Term Income Fund
[Class A shares and Class C shares])
Cross Reference Sheets (Thornburg Intermediate Municipal Fund;
[Class A and Class C shares]
Thornburg New Mexico Intermediate Municipal Fund
[Class A shares];
Thornburg Florida Intermediate Municipal Fund
[Class A shares];
Thornburg New York Intermediate Municipal Fund
[Class A shares];
Thornburg Alabama Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Arizona Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Pennsylvania Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Tennessee Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Texas Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Utah Intermediate Municipal Fund
[Class A shares and Class C shares])
Cross Reference Sheets (Thornburg Value Fund [Class A shares and
Class C shares]; Thornburg Global Value Fund
[Class A shares and Class C shares])
Cross Reference Sheets (Thornburg Intermediate Municipal Fund
[Institutional Class]; Thornburg Limited Term U.S.
Government Fund [Institutional Class]; Thornburg
Limited Term Income Fund [Institutional Class];
Thornburg Value Fund [Institutional Class])
Prospectus (Thornburg Limited Term U.S. Government Fund
[Class A shares and Class C shares];
Thornburg Limited Term Income Fund
[Class A shares and Class C shares])
Prospectus (Thornburg Intermediate Municipal Fund;
[Class A and Class C shares]
Thornburg New Mexico Intermediate Municipal Fund
[Class A shares];
Thornburg Florida Intermediate Municipal Fund
[Class A shares];
Thornburg New York Intermediate Municipal Fund
[Class A shares];
Thornburg Alabama Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Arizona Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Pennsylvania Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Tennessee Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Texas Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Utah Intermediate Municipal Fund
[Class A shares and Class C shares])
Prospectus (Thornburg Value Fund [Class A shares and
Class C shares]; Thornburg Global Value Fund
[Class A shares and Class C shares])
Prospectus (Thornburg Intermediate Municipal Fund
[Institutional Class shares];
Thornburg Limited Term U.S. Government Fund
[Institutional Class Shares];
Thornburg Limited Term Income Fund
[Institutional Class shares];
Thornburg Value Fund [Class A and
Class C shares])
Statement of Additional (Thornburg Limited Term U.S. Government Fund
Information [Class A shares and Class C shares];
Thornburg Limited Term Income Fund
[Class A shares and Class C shares])
Statement of Additional (Thornburg Intermediate Municipal Fund
Information [Class A shares and Class C shares];
Thornburg New Mexico Intermediate Municipal Fund
[Class A shares];
Thornburg Florida Intermediate Municipal Fund
[Class A shares];
Thornburg New York Intermediate Municipal Fund
[Class A shares];
Thornburg Alabama Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Arizona Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Pennsylvania Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Tennessee Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Texas Intermediate Municipal Fund
[Class A shares and Class C shares];
Thornburg Utah Intermediate Municipal Fund
[Class A shares and Class C shares])
Statement of Additional (Thornburg Value Fund [Class A shares and
Information Class C shares]; Thornburg Global Value Fund
[Class A shares and Class C shares])
Statement of Additional (Thornburg Intermediate Municipal Fund
Information [Institutional Class shares];
Thornburg Limited Term U.S. Government Fund
[Institutional Class shares];
Thornburg Limited Term Income Fund
[Institutional Class shares]; and
Thornburg Value Fund
[Institutional Class shares])
Part C
Signature Page
Exhibits
<PAGE>
THORNBURG INVESTMENT TRUST
CROSS REFERENCE SHEETS
("Thornburg Limited Term Income Funds"
[Class A and Class C shares])
Thornburg Limited Term U.S. Government Fund
Thornburg Limited Term Income Fund
Form N-1A Item Number
Part A Prospectus Caption
1 . . . . . . . . . . . . . . . . . . . . . .Cover Page
2 (a) . . . . . . . . . . . . . . . EXPENSE INFORMATION
2 (b) . . . . . . . . . . . . . . . . . . . . THE FUNDS
3 . . . . . . . . . . . . . . . . .FINANCIAL HIGHLIGHTS
4 (a)(i) . . . . . . . . . . ORGANIZATION OF THE FUNDS
(a)(ii), (b) & (c).INVESTMENT OBJECTIVES AND POLICIES
5 . . . . . . . . . INFORMATION ABOUT THE FUNDS
(a) . . . . . .Organization of the Funds; TMC and TSC
(b) . . . . . . . . . . . . . . . . . . . TMC and TSC
(c) . . . . . . . . . . . . . . . . . . . TMC and TSC
(d) . . . . . . . . . . . . . . . . . . . TMC and TSC
Outside Cover
(e) . . . . . . . . . . . . . . . . . . Outside Cover
(f) . . . . . . . . . . . . . . . . . . . TMC and TSC
(g) . . . . . . . . . . . . . . . . . Not Applicable
5 A . . . . . MANAGEMENT DISCUSSION OF FUND PERFORMANCE
6 (a) . . . . . . . . . . . . Organization of the Funds
Organization of the Funds
(b) . . . . . . . . . . . . . . . . . Not Applicable
(c) . . . . . . . . . . . . . . . . . Not Applicable
(d) . . . . . . . . . . . . . . . . . Not Applicable
(e) . . . . . . . . . . Cover Page; INVESTOR SERVICES
(f) . . . . . . . . SHAREHOLDER AND ACCOUNT POLICIES
(g) . . . . . . . . . . . . . . . . . . . . . . TAXES
(h) . . . . . . . . YOUR ACCOUNT; Buying Fund Shares
7 (a) . . . . . . . . . . . . . . . . . . Outside Cover
(b), (c), (d) . . . YOUR ACCOUNT / Buying Fund Shares
(e) . . SERVICE AND DISTRIBUTION PLANS; Service Plan
(f) . . . . . . . . . SERVICE AND DISTRIBUTION PLANS
8 . . . . . . . . . . . . . . . . . SELLING FUND SHARES
(a), (b) . . . . . . . . . . . . SELLING FUND SHARES
(c) . . . . . . . . . . . . . . . SELLING FUND SHARES
(d) . . . . . . . . . . . . . . . Transaction Details
9 . . . . . . . . . . . . . . . . . . . Not Applicable
Part B Statement of Additional Information
10 . . . . . . . . . . . . . . . . . . . . .Cover Page
11 . . . . . . . . . . . . . . . . . TABLE OF CONTENTS
12 . . . . . . . . . . . . . . . . . . Not Applicable
13
(a) . . . . . . . INVESTMENT OBJECTIVES AND POLICIES
(b) . . . . . . . . . . . . . .INVESTMENT LIMITATIONS
(c) . . . . . . . .INVESTMENT OBJECTIVES AND POLICIES
(d) . . . . . . . .INVESTMENT OBJECTIVES AND POLICIES
14 (a), (b) . . . . . . . . . . . . . . . . .MANAGEMENT
(c) . . . . . . . . . . . . . . . . Not Applicable
15 . . . . . . . . . . . . . . . . . . Not Applicable
16 (a), (b), (c). . . . . . . . .INVESTMENT ADVISER AND
INVESTMENT ADVISORY AGREEMENT;
MANAGEMENT
(d) . . . . . . . . . . . . . . . . . Not Applicable
(e) . . . . . . . . . . . . . . . . . Not Applicable
(f) . . . . . . . . . . . . . INVESTMENT ADVISER AND
INVESTMENT ADVISORY AGREEMENT;
SERVICE AND DISTRIBUTION PLANS
(g) . . . . . . . . . . . . . . . . . Not Applicable
(h) . . . . . . . . .Prospectus; INDEPENDENT AUDITORS
(i) . . . . . . . . . . . . . . . . . Not Applicable
17 . . . . . . . . . . . . . . PORTFOLIO TRANSACTIONS
18 . . . . . . . . . . . . . . . . . . . . Prospectus
19 . . . . . . . . Prospectus; PURCHASE OF FUND SHARES
20 . . . DISTRIBUTIONS, TAXES AND SHAREHOLDER ACCOUNTS
21 . . . . . . . . . . . . . . . . . . . . DISTRIBUTOR
22 . . . . . . . . . DETERMINATION OF NET ASSET VALUE;
YIELD COMPUTATION
23 . . . . . . . . . . . . . . . FINANCIAL STATEMENTS
<PAGE> THORNBURG INVESTMENT TRUST
CROSS REFERENCE SHEETS
("Thornburg Intermediate Municipal Funds"
[Class A shares and Class C shares])
Thornburg Intermediate Municipal Fund
Thornburg New Mexico Intermediate Municipal Fund
Thornburg Florida Intermediate Municipal Fund
Thornburg New York Intermediate Municipal Fund
Thornburg Alabama Intermediate Municipal Fund
Thornburg Arizona Intermediate Municipal Fund
Thornburg Pennsylvania Intermediate Municipal Fund
Thornburg Tennessee Intermediate Municipal Fund
Thornburg Texas Intermediate Municipal Fund
Thornburg Utah Intermediate Municipal Fund
Form N-1A Item Number
Part A Prospectus Caption
1 . . . . . . . . . . . . . . . . . . . . . .Cover Page
2 (a) . . . . . . . . . . . . . . . EXPENSE INFORMATION
(b) . . . . . . . . . . . . . . . . . Not Applicable
3 . . . . . . . . . . . . . . . . FINANCIAL HIGHLIGHTS
4 (a)(i). . . . . . . .Special Considerations Affecting
Single-State Funds;
Organization of the Funds
Organization of the Funds
(a)(ii), (b) & (c).INVESTMENT OBJECTIVES AND POLICIES
5 . . . . . . . . . . . . . INFORMATION ABOUT THE FUNDS
(a) . . . . . .Organization of the Funds; TMC and TSC
(b) . . . . . . . . . . . . . . . . . . . TMC and TSC
(c) . . . . . . . . . . . . . . . . . . . TMC and TSC
(d) . . . . . . . . . . . . . . . . . . . TMC and TSC
Outside Cover
(e) . . . . . . . . . . . . . . . . . . Outside Cover
(f) . . . . . . . . . . . . . . . . . . . TMC and TSC
(g) . . . . . . . . . . . . . . . . . Not Applicable
5 A . . . . . MANAGEMENT DISCUSSION OF FUND PERFORMANCE
6 (a) . . . . . . . . . . . . Organization of the Funds
Organization of the Funds
(b) . . . . . . . . . . . . . . . . . Not Applicable
(c) . . . . . . . . . . . . . . . . . Not Applicable
(d) . . . . . . . . . . . . . . . . . Not Applicable
(e) . . . . . . . . . . Cover Page; INVESTOR SERVICES
(f) . . . . . . . . SHAREHOLDER AND ACCOUNT POLICIES
(g) . . . . . . . . . . . . . . . . . . . . . . TAXES
(h) . . . . . . . . YOUR ACCOUNT; Buying Fund Shares
7 (a) . . . . . . . . . . . . . . . . . . Outside Cover
(b), (c), (d) . . . YOUR ACCOUNT / Buying Fund Shares
(e) . . SERVICE AND DISTRIBUTION PLANS; Service Plan
(f) . . . . . . . . . SERVICE AND DISTRIBUTION PLANS
8 . . . . . . . . . . . . . . . . . SELLING FUND SHARES
(a), (b) . . . . . . . . . . . . SELLING FUND SHARES
(c) . . . . . . . . . . . . . . . SELLING FUND SHARES
(d) . . . . . . . . . . . . . . . Transaction Details
9 . . . . . . . . . . . . . . . . . . . Not Applicable
Part B Statement of Additional Information
10 . . . . . . . . . . . . . . . . . . . . Cover Page
11 . . . . . . . . . . . . . . . . . TABLE OF CONTENTS
12 . . . . . . . . . . . . . . . . . . Not Applicable
13
(a) . . . . . . . INVESTMENT OBJECTIVES AND POLICIES
(b) . . . . . . . . . . . . . INVESTMENT LIMITATIONS
(c) . . . . . . . INVESTMENT OBJECTIVES AND POLICIES
(d) . . . . . . . INVESTMENT OBJECTIVES AND POLICIES
Investment Policies and Techniques
14 (a), (b) . . . . . . . . . . . . . . . . MANAGEMENT
(c). . . . . . . . . . . . . . . . . Not Applicable
15 . . . . . . . . . . . . . . . . . . Not Applicable
16 (a), (b), (c) INVESTMENT ADVISER AND
INVESTMENT ADVISORY AGREEMENT;
MANAGEMENT
(d) . . . . . . . . . . . . . . . . . Not Applicable
(e) . . . . . . . . . . . . . . . . . Not Applicable
(f) . . . . . . . . . . . . . .INVESTMENT ADVISER AND
INVESTMENT ADVISORY AGREEMENT
. . . . . . . . . . . . .SERVICE AND DISTRIBUTION PLANS
(g) . . . . . . . . . . . . . . . . . Not Applicable
(h) . . . . . . . . Prospectus; INDEPENDENT AUDITORS
(i) . . . . . . . . . . . . . . . . . Not Applicable
17. . . . . . . . . . . . . . . PORTFOLIO TRANSACTIONS
18 . . . . . . . . . . . . . . . . . . . . Prospectus
19 . . . . . . . . Prospectus; PURCHASE OF FUND SHARES
20 . . . DISTRIBUTIONS, TAXES AND SHAREHOLDER ACCOUNTS
21 . . . . . . . . . . . . . . . . . . . . DISTRIBUTOR
22 . . . . . . . . . DETERMINATION OF NET ASSET VALUE;
YIELD COMPUTATION
23 . . . . . . . . . . . . . Incorporated by reference
<PAGE>
THORNBURG INVESTMENT TRUST
CROSS REFERENCE SHEETS
Thornburg Value Fund and Thornburg Global Value Fund
[Class A shares and Class C Shares]
Form N-1A Item Number
Part A Prospectus Caption
1 . . . . . . . . . . . . . . . . . . . . . Cover Page
2 (a) . . . . . . . . . . . . . . . . . . . . KEY FACTS
(b) . . . . . . . . . . . . . . . . . . . . KEY FACTS
3 . . . . . . . . . . . . . . . . . . . Not Applicable
4 (a)(i). . . . . . . . . . . . . . THE FUND IN DETAIL
ORGANIZATION OF THE FUNDS
(ii) . . . . . . . . . . . . . . . . . KEY FACTS
The Fund at a Glance
INVESTMENT PRINCIPLES AND RISKS;
SECURITIES AND INVESTMENT PRACTICES;
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
(b). . . . . . . . .INVESTMENT PRINCIPLES AND RISKS;
SECURITIES AND INVESTMENT PRACTICES
5 (a) . . . . . . . . . . . . . . . THE FUND IN DETAIL
ORGANIZATION OF THE FUNDS
(b), (c). . . . . . . . . . . . . .THE FUND IN DETAIL
ORGANIZATION OF THE FUNDS
5 A . . . . . . . . . . . . . . . . . . Not Applicable
6 (a) . . . . . . . . . . . . . . . THE FUND IN DETAIL
ORGANIZATION OF THE FUNDS
(b) . . . . . . . . . . . . . . . . . Not Applicable
(c) . . . . . . . . . . . . . . . . . Not Applicable
(d) . . . . . . . . . . . . . . . . . Not Applicable
(e) . . . . . . . . . . . . . . . .THE FUND IN DETAIL
ORGANIZATION OF THE FUNDS
(f), (g). . . . . . SHAREHOLDER AND ACCOUNT POLICIES
(h) . . . . . . . . . . . . . . . BUYING FUND SHARES
7 (a) . . . . . . . . . . . . . . . .THE FUND IN DETAIL
ORGANIZATION OF THE FUNDS
(b), (c), (d) . . . . . . . . . . BUYING FUND SHARES
(e), (f). . . . . . . . . . ORGANIZATION OF THE FUNDS
(g) . . . . . . . . . . . . . . . .BUYING FUND SHARES
Class B Shares;
SELLING FUND SHARES
8 (a), (b), (c) . . . . . . . . . . SELLING FUND SHARES
(d) . . . . . . . . . . . . . . . TRANSACTION DETAILS
9 . . . . . . . . . . . . . . . . . . . Not Applicable
Part B Statement of Additional Information
10. . . . . . . . . . . . . . . . . . . . . Cover Page
11 . . . . . . . . . . . . . . . . . TABLE OF CONTENTS
12 . . . . . . . . . . . . . . . . . . . . Cover Page
13
(a) . . . . . . . INVESTMENT POLICIES AND LIMITATIONS
(b) . . . . . . . INVESTMENT POLICIES AND LIMITATIONS
(c) . . . . . . . INVESTMENT POLICIES AND LIMITATIONS
(d) . . . . . . . . . . . . . . . . . . . Prospectus
14 (a), (b) . . . . . . . . . . . TRUSTEES AND OFFICERS
(c). . . . . . . . . . . . . . . . . Not Applicable
15 . . . . . . . . . . . . . . . . . . Not Applicable
16 (a), (b), (c). . . . . . . . INVESTMENT ADVISER AND
INVESTMENT ADVISORY AGREEMENT
(d) INVESTMENT ADVISER AND
INVESTMENT ADVISORY AGREEMENT
(e) . . . . . . . . . . . . . . . . . Not Applicable
(f) . . . . . . . . . . . . . INVESTMENT ADVISORY AND
ADMINISTRATIVE SERVICES AGREEMENTS
SERVICE AND DISTRIBUTION PLANS
(g) . . . . . . . . . . . . . . . . . Not Applicable
(h) . . . . . . . . Prospectus; INDEPENDENT AUDITORS
(i) . . . . . . . . . . . . . . . . . Not Applicable
17. . . . . . . . . . . . . . . PORTFOLIO TRANSACTIONS
18 . . . . . Prospectus; CONVERSION OF CLASS B SHARES
19 . . . . . . . . . . . . . . . . . . . . Prospectus;
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
20 . . . . . . . . . . . . . . DISTRIBUTIONS AND TAXES
21 . . . . . . . . . . . . . . . . . . . . DISTRIBUTOR
22 . . . . . . . . . . . . . . . . . . . . PERFORMANCE
23 . . . . . . . . . . . . . . . FINANCIAL STATEMENTS
<PAGE>
THORNBURG INVESTMENT TRUST
CROSS REFERENCE SHEETS
Thornburg Intermediate Municipal Fund
[Institutional Class]
Thornburg Limited Term U.S. Government Fund
[Institutional Class]
Thornburg Limited Term Income Fund
[Institutional Class]
Thornburg Value Fund
[Institutional Class]
Form N-1A Item Number
Part A Prospectus Caption
1 . . . . . . . . . . . . . . . . . . . . . .Cover Page
2 (a) . . . . . . . . . . . . . . . EXPENSE INFORMATION
(b) . . . . . . . . . . . . . . . . . Not Applicable
3 . . . . . . . . . . . . . . . . . . . Not Applicable
4 (a)(i). . . . . . . . . . . ORGANIZATION OF THE FUNDS
(a)(ii), (b) & (c).INVESTMENT OBJECTIVES AND POLICIES
5 . . . . . . . . . . . . . ORGANIZATION OF THE FUNDS;
TMC and TSC
5 A . . . . . . . . . . . . . . . . . . Not Applicable
6 (a) . . . . . . . . . . . . ORGANIZATION OF THE FUNDS
(b) . . . . . . . . . . . . . . . . . Not Applicable
(c) . . . . . . . . . . . . . . . . . Not Applicable
(d) . . . . . . . . . . . . . . . . . . . Cover Page
(e) . . . . . . . . . . Cover Page; INVESTOR SERVICES
(f) . . . . . . . . SHAREHOLDER AND ACCOUNT POLICIES
(g) . . . . . . . . . . . . . . . . . . . . . . TAXES
(h) . . . . . . . . . . . . . . . . . . . Cover Page;
YOUR ACCOUNT - Buying Fund Shares
7 (a) . . . . . . . . . . . . . ADDITIONAL INFORMATION
(b), (c), (d) . . . . . . . . . . . . . YOUR ACCOUNT;
TRANSACTION DETAILS
8 (a), (b), (c) and (d) . . . . . . SELLING FUND SHARES
9 . . . . . . . . . . . . . . . . . . . Not Applicable
Part B Statement of Additional Information
10 . . . . . . . . . . . . . . . . . . . . Cover Page
11 . . . . . . . . . . . . . . . . . TABLE OF CONTENTS
12 . . . . . . . . . . . . . . . . . . . . Cover Page
13 . . . . . . . . INVESTMENT OBJECTIVES AND POLICIES
14 . . . . . . . . . . . . . . . . . . . . MANAGEMENT
15 . . . . . . . . . . . . . . . . . . Not Applicable
16 .INVESTMENT ADVISER, INVESTMENT ADVISORY AGREEMENTS
AND ADMINISTRATIVE SERVICES AGREEMENTS;
17. . . . . . . . . . . . . . . PORTFOLIO TRANSACTIONS
18 . . . . . . . . . . . . . . . . . . . . Prospectus
19 . . . . . . . . . . . . . . . . . . . . Prospectus
20 . . . . . . . . . . . . . . . . . . . . . . . TAXES
21 . . . . . . . . . . . . . . . . . . . . DISTRIBUTOR
22 . . . . . . . . . YIELD AND PERFORMANCE INFORMATION
23 . . . . . . . . . . . . . . . FINANCIAL STATEMENTS
PART A
PART B
PART C
OTHER INFORMATION
Items 23 and 24. Financial Statements and Exhibits.
(a) Financial Statements
(i) Thornburg Limited Term U.S. Government Fund (Class A,
Class C and Class I shares),
(ii) Thornburg Limited Term Income Fund (Class A,
Class C and Class I shares),
(iii) Thornburg Intermediate Municipal Fund (Class A,
Class C and Class I shares),
(iv) Thornburg New Mexico Intermediate Municipal Fund (Class A
shares),
(v) Thornburg Florida Intermediate Municipal Fund (Class A
shares),
(vi) Thornburg Value Fund (Class A and Class C shares):
Reports of Independent Auditors dated October 24, 1997,
Statements of Assets and Liabilities including Schedules of
Investments as of September 30, 1997, Statements of
Operations for the year ended September 30, 1997, Statements
of Changes in Net Assets for the two years ended
September 30, 1997, Notes to Financial Statements, Financial
Highlights are incorporated by reference to Registrant's
1997 Annual Reports to Shareholders in respect of Thornburg
Limited Term U.S. Government Fund, Thornburg Limited Term
Income Fund, Thornburg Intermediate Municipal Fund,
Thornburg New Mexico Intermediate Municipal Fund, and
Thornburg Florida Intermediate Municipal Fund, and Thornburg
Value Fund previously filed with the Securities and Exchange
Commission; Statements of Assets and Liabilities including
Schedules of Investments as of March 31, 1998, Statements of
Operations for the period ending March 31, 1998, Statements
of Changes in Net Assets for the period ending March 31,
1998, Notes to Financial Statements, Financial Highlights
are incorporated by reference to Registrant's Semiannual
Reports to Shareholders dated March 31, 1998 in respect of
Thornburg Limited Term U.S. Government Fund, Thornburg
Limited Term Income Fund, Thornburg Intermediate Municipal
Fund, Thornburg New Mexico Intermediate Municipal Fund,
Thornburg Florida Intermediate Municipal Fund, and Thornburg
Value Fund, previously filed with the Securities and
Exchange Commission.
(vii) Thornburg New York Intermediate Municipal Fund: Statement of
Assets and Liabilities including Schedule of Investments as
of June 30, 1998, Statement of Operations for the period
ended June 30, 1998, Statement of Changes in Net Assets
for the period ended June 30, 1998, Notes to Financial
Statements and Financial Highlights, Report of Independent
Auditors dated July 24, 1998, are incorporated by
reference to Registrant's Annual Report to Shareholders in
respect of Thornburg New York Intermediate Municipal Fund
previously filed with the Securities and Exchange
Commission.
(viii) Thornburg Global Value Fund: Statement of Assets and
Liabilities including Schedule of Investments as of
September 30, 1998, Statement of Operations for the period
ended September 30, 1998, Statement of Changes in Net Assets
for the period ended September 30, 1998, Notes to Financial
Statement and Financial Highlights, accompany this post-
effective amendment as an Exhibit.
(b) Exhibits
The following Exhibits are incorporated herein by reference to Registrant's
Registration Statement on Form N-1A as initially filed on June 12, 1987.
(1) Limited Term Trust, Agreement and Declaration of Trust,
dated June 3, 1987.
(2) By-Laws of Limited Term Trust, dated June 3, 1987.
(3) Not applicable.
(4) Not applicable.
(5) Form of Investment Advisory Agreement between
Registrant and Thornburg Management Company, Inc.
(6) (a) Form of Distribution Agreement between Registrant
and Thornburg Securities Corporation.
(b) Form of Agency Agreement.
(7) Not applicable.
(11) Not applicable.
(12) Not applicable.
(13) Form of Subscription to Shares by Thornburg Management
Company, Inc.
(15) Form of Plan and Agreement of Distribution Pursuant to
Rule 12b-1 between Registrant and Thornburg Management
Company, Inc.
The following exhibits are incorporated herein by reference to Registrant's
pre-effective amendment No. 1 to its Registration Statement on Form N-1A as
filed on October 28, 1987:
(1) Thornburg Income Trust - First Amendment and Supplement
to Agreement and Declaration of Trust, dated August 11,
1987.
(8) Form of Custodian Agreement between Registrant and
State Street Bank and Trust Company. This exhibit
supersedes the form of Custodian Agreement filed with
the Registrant's initial Registration Statement on Form
N-1A on June 12, 1987.
(9) Form of Transfer Agency Agreement between Registrant
and State Street Bank and Trust Company. This exhibit
supersedes the form of Transfer Agency Agreement filed
with the Registrant's initial Registration Statement on
Form N-1A on June 12, 1987.
The following exhibits are incorporated herein by reference to Registrant's
post-effective amendment No. 1 to its Registration Statement on Form N-1A
as filed on March 3, 1988:
(1) Thornburg Income Trust-Second Amendment and Supplement
to Agreement and Declaration of Trust, dated October 28,
1987.
The following exhibits are incorporated herein by reference to Registrant's
post-effective amendment No. 7 to its Registration Statement on Form N-1A
as filed on April 19, 1991:
(16) Powers of Attorney from Messrs. Bemis, Smith and
Thornburg.
The following exhibits are incorporated herein by reference to Registrant's
post-effective amendment No. 9 to its Registration Statement on Form N-1A
as filed on March 3, 1992:
(16) Power of Attorney from J. Burchenal Ault
The following exhibits are incorporated herein by reference to the
Registrant's post-effective amendment No. 10 to its Registration Statement
on Form N-1A as filed on July 23, 1992:
(5) Revised form of Investment Advisory Agreement between
Registrant and Thornburg Management Company, Inc.
(13) Form of Subscription to Shares
(15) Revised form of Plan and Agreement of Distribution
Pursuant to Rule 12b-1 between Registrant and Thornburg
Management Company, Inc.
The following exhibits are incorporated herein by reference to the
Registrant's post-effective amendment No. 13 to its Registration Statement
on Form N-1A as filed on December 3, 1993:
(1) Thornburg Income Trust -- Third, Fourth, Fifth, Sixth
and Seventh Amendments and Supplements to Agreement and
Declaration of Trust
The following exhibits are incorporated herein by reference to the
Registrant's post-effective amendment No. 14 to its Registration Statement
on Form N-1A as filed on May 13, 1994:
(18) Power of attorney (B. McMahon)
The following exhibits are incorporated herein by reference to the
Registrant's post-effective amendment no. 17 to its Registration Statement
on Form N-1A as filed on July 27, 1994:
(1) Thornburg Income Trust Amended and Restated Designation
of Series.
(15.2) Form of Plan and Agreement pursuant to Rule 12b-1
(Class B Distribution Plan)
(15.3) Form of Plan and Agreement pursuant to Rule 12b-1
(Class C Distribution Plan)
The following exhibits are incorporated herein by reference to the
Registrant's post-effective amendment no. 18 to its Registration Statement
on Form N-1A as filed on December 3, 1994:
(15.2) Form of Plan and Agreement pursuant to Rule 12b-1
(Class B Service Plan)
(15.3) Form of Plan and Agreement pursuant to Rule 12b-1
(Class C Service Plan)
The following exhibits are incorporated by reference to the Registrant's
post-effective amendment no. 20 to its Registration Statement on Form N-1A
as filed on July 5, 1995:
(1.1) Thornburg Income Trust - Ninth Amendment and
Supplement to Agreement and Declaration of Trust
(1.2) Thornburg Income Trust - Tenth Amendment and
Supplement to Agreement and Declaration of Trust
(5) Investment Advisory Agreement - in respect of
Thornburg Value Fund
(15.1) Form of Plan and Agreement Pursuant to Rule 12b-1
(Service Plan - all classes) - Thornburg Value Fund
(15.2) Form of Plan and Agreement Pursuant to Rule 12b-1
(Class B Distribution Plan) - Thornburg Value Fund
(15.3) Form of Plan and Agreement Pursuant to Rule 12b-1
(Class C Distribution Plan) - Thornburg Value Fund
(19) Power of attorney from David A. Ater
The following exhibit is incorporated by reference to the Registrant's
post-effective amendment no. 22 to its Registration Statement on Form N-1A
as filed on October 2, 1995:
(1) Thornburg Income Trust - Corrected Tenth Amendment
and Supplement to Agreement and Declaration of Trust
The following exhibits are incorporated by reference to the Registrant's
post-effective amendment no. 26 to its Registration Statement on Form N-1A
as filed on May 6, 1996:
(1) First Supplement to Amended and Restated Designation of Series
(15) Form of Institutional Class Service Plan (12b-1 plan and
agreement)
The following exhibits are incorporated by reference to the Registrant's
post-effective amendment no. 27 to its Registration Statement on Form N-1A
as filed on August 30, 1996:
(5) Form of Restated Investment Advisory Agreement
(9) Form of Administrative Services Agreement
The following exhibits are incorporated by reference from the Registrant's
post-effective amendment no. 29 to its Registration Statement on Form N-1A
as filed on March 14, 1997:
(1.1) Eleventh Amendment and Supplement to Agreement and Declaration
of Trust
(1.2) Twelfth Amendment and Supplement to Agreement and Declaration
of Trust
(5) Amended Form of Restated Investment Advisory Agreement (re
Thornburg New York Intermediate Municipal Fund)
(9) Form of Administrative Services Agreement (re Class A Shares
of Thornburg New York Intermediate Municipal Fund)
(11.1) Consent of Counsel to be named in registration statement
(11.2) Consent of McGladrey & Pullen, LLP, independent auditors, to
be named in registration statement (re Thornburg New York
Intermediate Municipal Fund)
(14) Model IRA Plan
(15) Form of Class A Service Plan for Thornburg New York
Intermediate Municipal Fund (12b-1 plan and agreement)
(19.1) Power of attorney from Brian J. McMahon
(19.2) Power of attorney from James W. Weyhrauch
The following exhibits are incorporated by reference from the
Registrant's post-effective amendment no. 30 to its Registration Statement
on Form N-1A as filed on September 3, 1997:
(11.2) Consent of McGladrey & Pullen, LLP, independent auditors, to
be named in registration statement (re Thornburg New York
Intermediate Municipal Fund)
(18) Rule 18f-3 plan
The following exhibits are incorporated by reference from the
Registrant's post-effective amendment no. 31 to its Registration Statement
on Form N-1A as filed on December 3, 1997:
(11.1) Consent of Counsel to be named in registration statement
(11.2) Consent of McGladrey & Pullen, LLP, independent auditors, to
be named in registration statement (re Thornburg New York
Intermediate Municipal Fund)
(16.1) Schedules of performance computations as of September 30, 1997
for Thornburg Limited Term U.S. Government Fund (Class A,
Class C and Class I shares); Thornburg Limited Term Income
Fund (Class A, Class C and Class I shares); Thornburg
Intermediate Municipal Fund (Class A, Class C and Class I
shares); Thornburg New Mexico Intermediate Municipal Fund
(Class A shares); Thornburg Florida Intermediate Municipal
Fund (Class A shares); Thornburg Value Fund (Class A and
Class C shares)
(16.2) Financial data schedules as of September 30, 1997 for
Thornburg Limited Term U.S. Government Fund, Thornburg
Limited Term Income Fund, Thornburg Intermediate Municipal
Fund, Thornburg New Mexico Intermediate Municipal Fund,
Thornburg Florida Intermediate Municipal Fund and Thornburg
Value Fund
The following exhibits are incorporated by reference from the Registrant's
post-effective amendment no. 32 to its Registration Statement on Form N-1A
as filed on February 17, 1998:
(5) Amended and Restated Investment Advisory Agreement
(6) Thornburg Investment Trust Distribution Agreement
(9.1) Administrative Services Agreement (Class A and Class C shares)
(9.2) Administrative Services Agreement (Class I Shares)
(9.3) Memorandum of Reimbursement
(15.1) Plan and Agreement of Distribution Pursuant to Rule 12b-1
(Service Plan - Classes A, C and I)
(15.2) Plan and Agreement of Distribution Pursuant to Rule 12b-1
(Distribution Plan - Class C)
The following exhibits are incorporated by reference from Registrant's
post-effective amendment no. 33 to its Registration Statement on Form N-1A
as filed on March 10, 1998:
(1) Thirteenth Amendment and Supplement to Agreement and
Declaration of Trust
(11.1) Consent of counsel to be named in registration statement
(11.2) Consent of independent auditors to be named in registration
statement
(14) IRA plan/disclosure statement
The following exhibits are incorporated by reference from Registrant's
post-effective amendment no. 34 to its Registration Statement on Form N-1A
as filed on September 2, 1998:
(11.1) Consent of counsel to be named in registration statement
(11.2) Consent of independent auditors to be named in registration
statement
(16.1) Schedules of performance computations as of March 31, 1998 for
Thornburg Limited Term U.S. Government Fund (Class A, Class C
and Class I shares); Thornburg Limited Term Income Fund
(Class A, Class C and Class I shares); Thornburg Intermediate
Municipal Fund (Class A, Class C and Class I shares);
Thornburg New Mexico Intermediate Municipal Fund (Class A
shares); and schedule of performance computations as of
June 30, 1998 for Thornburg New York Intermediate Municipal
Fund
(16.2) Financial data schedule as of June 30, 1998 for Thornburg New
York Intermediate Municipal Fund
The following exhibit is filed herewith:
For Thornburg Global Value Fund, Statement of Assets and Liabilities
including Schedule of Investments as of September 30, 1998,
Statement of Operations for the period ended September 30, 1998,
Statement of Changes in Net Assets for the period ended
September 30, 1998, Notes to Financial Statements and
Financial Highlights
Item 25. Persons Controlled By or Under Common Control With Registrant.
Not applicable.
Item 26. Number of Record Holders of Securities (as of June 30, 1998).
Title of Series (active series only) No. of Holders
------------------------------------ --------------
Thornburg Limited Term U.S. Government Fund
Class A . . . . . . . 3,250
Class C . . . . . . . 151
Class I . . . . . . . 25
Thornburg Limited Term Income Fund
Class A . . . . . . . 1,013
Class C . . . . . . . 306
Class I . . . . . . . 61
Thornburg Intermediate Municipal Fund
Class A . . . . . . . 5,708
Class C . . . . . . . 421
Class I . . . . . . . 68
Thornburg New Mexico Intermediate Municipal Fund
Class A . . . . . . . 2,393
Thornburg Florida Intermediate Municipal Fund
Class A . . . . . . . 356
Thornburg New York Intermediate Municipal Fund
Class A . . . . . . . 708
Thornburg Value Fund
Class A . . . . . . . 5,243
Class C . . . . . . . 1,865
Thornburg Global Value Fund
Class A . . . . . . . 171
Class C . . . . . . . 35
Item 27. Indemnification.
(1) Please see Section 10.2 of the Agreement and Declaration of
Trust filed as Exhibit 1. Section 10.2 generally provides that each of the
Trust's officers and Trustees will be indemnified by the Trust against
liability and expenses in connection with his having been a Trustee or
officer unless it is determined that the individual is liable by reason of
willful misfeasance, bad faith, gross negligence or reckless disregard of
the duties involved in the conduct of his office, or if the individual did
not act in good faith in the reasonable belief that the action was in the
Trust's best interest.
(2) Please see Section 7 of the Distribution Agreement filed as
Exhibit 6(a). Section 7 generally provides that the Trust will indemnify
TSC, its officers and directors, and its controlling persons against
liabilities and expenses incurred because of any alleged untrue statement
of material fact contained in the Registration Statement, Prospectus or
annual or interim reports to shareholders, or any alleged omission to state
a material fact required to be stated therein, or necessary to make the
statements therein, not misleading, except where (i) the untrue statement
or omission arises from information furnished by TSC, or (ii) to the extent
the prospective indemnitee is an officer, trustee or controlling person
of the Trust, the indemnification is against public policy as expressed in
the 1933 Act, or (iii) the liability or expense arises from TSC's willful
misfeasance, bad faith, gross negligence, reckless performance of duties,
or reckless disregard of its obligations and duties under the Distribution
Agreement. Further, TSC agrees to indemnify the Trust, its officers and
trustees, and its controlling persons in certain circumstances.
(3) The directors and officers of TMC are insured, and it is
intended that the Trustees and officers of the Trust will become insured,
under a joint professional and directors and officers liability policy.
The described individuals are referred to as the "insureds." The policy
covers amounts which the insureds become legally obligated to pay by reason
of the act, error, omission, misstatement, misleading statement or neglect
or breach of duty in the performance of their duties as directors, trustees
and officers. In addition, the policy covers TMC, and is proposed to cover
the Registrant, to the extent that they have legally indemnified the
insureds for amounts incurred by the insureds as described in the preceding
sentence. The coverage excludes amounts that the insureds become obligated
to pay by reason of conduct which constitutes willful misfeasance, bad
faith, gross negligence or reckless disregard of the insured's duties. The
application of the foregoing provisions is limited by the following
undertaking set forth in the rules promulgated by the Securities and
Exchange Commission:
Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to
Trustees, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the
opinion of the Securities and Exchange Commission such
indemnification is against public policies expressed
in such Act and that if a claim for indemnification
against such liabilities other than the payment by the
Registrant of expenses incurred or paid by a Trustee,
officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding)
is asserted by such Trustee, officer or controlling
person in connection with the securities being
registered, the Registrant will, unless in the opinion
of its counsel the matter has been settled by
controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as
expressed in such Act and will be governed by the
final adjudication of such issue.
Item 28. Business and Other Connections of the Investment Adviser. See
"MANAGEMENT" in the Statement of Additional Information.
Item 29. Principal Underwriters.
(a) The principal underwriter for the Registrant will be Thornburg
Securities Corporation ("TSC"). TSC is registered as a broker-dealer under
the Securities Exchange Act of 1934 and is a member of the National
Association of Securities Dealers, Inc. TSC was formed for the purpose of
distributing the shares of the Registrant's series and other registered
investment companies sponsored by its affiliates, and does not currently
engage in the general securities business.
(b) The address of each of the directors and officers of TSC is 119
East Marcy Street, Suite 202, Santa Fe, New Mexico 87501.
Positions and Positions and
Offices Offices
Name with TSC with Registrant
- ---------------------- -------------- --------------------
H. Garrett Thornburg, Jr. Director Trustee; President
Kenneth Ziesenheim President Vice President
Dawn B. Fischer Secretary Secretary and
Assistant Treasurer
(c) Not applicable.
Item 30. Location of Accounts and Records.
All accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940 and the rules
thereunder are maintained at the offices of State Street Bank and Trust
Company, at 470 Atlantic Avenue, Fifth Floor, Boston, Massachusetts 02210.
Item 31. Management Services.
The Registrant and Thornburg Management Company, Inc. ("TMC") have agreed
that TMC will perform for the Registrant certain telephone answering
services previously performed by the Registrant's transfer agent, National
Financial Data Services, Inc. ("NFDS"). These telephone services include
answering telephone calls placed to the Registrant or its transfer agent by
shareholders, securities dealers and others through the Registrant's toll
free number, and responding to those telephone calls by answering
questions, effecting certain shareholder transactions described in the
Registrant's current prospectuses, and performing such other, similar
functions as the Registrant may reasonably prescribe from time to time.
The Registrant will pay one dollar for each telephone call, which was the
charge previously imposed by the Registrant's transfer agent for this
service. The Registrant's transfer agent will no longer charge for this
service. The Registrant understands that (i) the telephone answering
service provided by TMC will be superior to that previously provided by the
transfer agent because TMC will devote greater attention to training the
telephone personnel, and those personnel will have immediate access to the
Registrant's and TMC's management, (ii) the per-call charge imposed upon
the Registrant for this service will be no greater than that charged by the
Registrant's transfer agent, and (iii) TMC will not receive any profit from
providing this service. The Registrant will reimburse TMC for a portion of
the depreciation on certain telephone answering equipment purchased by TMC
to render the described services. The Registrant paid $44,552.67,
$73,536.38 and $20,906 to TMC under the described arrangements in each of
the three most recent fiscal years ended September 30, 1995, 1996 and 1997.
It is not believed that these arrangements constitute a management-related
services agreement.
Item 32. Undertakings.
The Registrant undertakes, if requested to do so by the holders
of at least 10% of its outstanding shares to call a meeting of shareholders
for the purpose of voting upon the question of removal of a trustee or
trustees, and to assist in communications with other shareholders as
required by Section 16(c) of the Investment Company Act of 1940, as
amended.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940 the Registrant has duly caused this
Registration Statement to be signed on its behalf by the undersigned,
thereto duly authorized, in the City of Santa Fe, and State of New Mexico
on the 19th day of November, 1998.
THORNBURG INVESTMENT TRUST
Registrant
By *
------------------------------------
H. Garrett Thornburg, Jr., President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
the capacities and on the date indicated.
*
- ------------------------------------------
H. Garrett Thornburg, Jr., Trustee,
President and principal executive officer
*
- ------------------------------------------
J. Burchenal Ault, Trustee
*
- ------------------------------------------
David A. Ater, Trustee
*
- ------------------------------------------
Forrest S. Smith, Trustee
*
- ------------------------------------------
James W. Weyhrauch, Trustee
* By: /s/
--------------------------------
Charles W.N. Thompson, Jr.
Attorney-In-Fact
<PAGE>
INDEX TO EXHIBITS
Exhibit
-------
Thornburg Global Value Fund:
Statement of Assets and Liabilities including Schedule of
Investments as of September 30, 1998, Statement of Operations
for the period ended September 30, 1998, Statement of Changes
in Net Assets for the period ended September 30, 1998, Notes
to Financial Statements and Financial Highlights
<PAGE>
EXHIBIT
Global Value Fund
ASSETS
Investments, at value (cost $189,004,825 and
9,163,784 respectively) $ 7,996,095
Cash 442,074
Receivable for fund shares sold 0
Unrealized gain on forward exchange contracts(Note 6) 85,988
Dividend receivable 19,233
Prepaid expenses and other assets 38,733
Total Assets 8,582,123
LIABILITIES
Payable for securities purchased 247,150
Payable for fund shares redeemed 0
Unrealized loss on forward exchange contracts(Note 6) 283,926
Accounts payable and accrued expenses 34,144
Total Liabilities 565,220
NET ASSETS $ 8,016,903
NET ASSETS CONSIST OF:
Undistributed net investment income $ 6,267
Net unrealized appreciation(depreciation) (1,365,627)
Distributions paid in excess of net realized gain (334,402)
Net capital paid in on shares of
beneficial interest 9,710,665
$ 8,016,903
NET ASSET VALUE:
Class A Shares:
Net asset value and redemption price per share
($7,439,514 applicable to 759,624 shares of
beneficial interest outstanding - Note 4) $ 9.79
Maximum sales charge, 4.50% of offering
price (4.70% of net asset value per share) 0.46
Maximum Offering Price Per Share $ 10.25
Class C Shares:
Net asset value and offering price per share*
($577,389 applicable to 59,070 shares of beneficial
interest outstanding - Note 4) $ 9.77
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge. See notes to financial statements.
Statement of operations
Year Ended September 30, 1998
Global Value Fund (a)
INVESTMENT INCOME
Dividend income (net of foreign taxes
withheld of $4,989) $ 52,329
Interest income 17,026
Limited partnership income 0
Total Income 69,355
EXPENSES
Investment advisory fees (Note 3) 22,883
Administration fees (Note 3)
Class A Shares 3,075
Class C Shares 194
Distribution and service fees (Note 3)
Class A Shares 6,151
Class C Shares 1,549
Transfer agent fees 17,855
Registration & filing fees 19,391
Custodian fees 10,380
Professional fees 6,305
Accounting fees 474
Trustee fees 126
Other expenses 978
Total Expenses 89,361
Less:
Expenses reimbursed by investment
advisor (Note 4) (45,571)
Net Expenses 43,790
Net Investment Income 25,565
REALIZED AND UNREALIZED GAIN - (NOTE 5)
Net realized gain (loss) on:
Investments (195,767)
Foreign currency transactions (138,635)
(334,402)
Net unrealized appreciation (depreciation)
Investments (1,167,689)
Foreign currency translation (197,938)
(1,365,627)
Net Realized and Unrealized
Gain on Investments (1,700,029)
Net Increase (Decrease) in
Net Assets Resulting From
Operations $ (1,674,464)
(a) Commencement of operations, May 28, 1998 to September 30, 1998. See
notes to financial statements.
Thornburg Global Value Fund
For the period from May 28, 1998 (a)
to September 30, 1998
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income $ 25,565
Net realized gain (loss) on investments and foreign
currency transactions (334,402)
Increase in unrealized depreciation on investments
and foreign currency translation (1,365,627)
Net (Decrease) in Net Assets Resulting from Operations (1,674,464)
DIVIDENDS TO SHAREHOLDERS:
From net investment income
Class A Shares (18,944)
Class C Shares (354)
FUND SHARE TRANSACTIONS - (Note 4)
Class A Shares 8,997,696
Class C Shares 712,969
Net Increase in Net Assets 8,016,903
NET ASSETS:
Beginning of period 0
End of period $ 8,016,903
(a) Commencement of operations See notes to financial statements.
Notes to financial statements
Thornburg Investment Trust
September 30, 1998
Note 1 - Organization
Thornburg Value Fund (the " Value Fund") and Thornburg Global Value Fund (the
"Global Value Fund"), hereinafter referred to collectively as the "Funds," are
series of Thornburg Investment Trust (the "Trust"). The Trust was 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 six
series of shares of beneficial interest in addition to those of the Funds:
Thornburg Limited Term U.S. Government Fund, Thornburg New Mexico Intermediate
Municipal Fund, Thornburg Intermediate Municipal Fund, Thornburg Limited Term
Income Fund, Thornburg Florida Intermediate Municipal Fund and Thornburg New
York Intermediate Municipal Fund. Each series is considered to be a separate
entity for financial reporting and tax purposes. The Value Fund seeks long-term
capital appreciation by investing primarily in domestic equity securities
selected on a value basis. The Global Value Fund seeks long-term capital
appreciation by investing in both foreign and domestic equity securities
selected on a value basis. The Funds currently offers two classes of shares of
beneficial interest, Class A and 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 C shares
are sold at net asset value without a sales charge at the time of purchase, but
are subject to a contingent deferred sales charge upon redemption within one
year, and bear both a service fee and a distribution fee, and (iii) 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 Funds are limited to distribution
fees, administration fees and certain transfer agent expenses.
Note 2 - Significant Accounting Policies Significant accounting policies of the
Funds are as follows:
Valuation of Securities: In determining net asset value, investments are stated
at value based on latest sales prices reported on national securities exchanges
on the last business day of the period. Investments for which no sale is
reported are valued at the mean between bid and asked prices. Securities for
which market quotations are not readily available are valued at fair value as
determined by management and approved in good faith by the Board of Trustees.
Short term obligations having remaining maturities of 60 days or less are valued
at amortized cost which approximates market value. Foreign Currency Translation:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against the U.S. dollar on the date of valuation. Purchases and
sales of securities and income items denominated in foreign currencies are
translated into U.S. dollars at the exchange rate in effect on the
translation date. When a Fund purchases or sells foreign securities it will
customarily enter into a foreign exchange contract to minimize foreign
exchange risk from the trade date to the settlement date of such
transactions. The Funds do not separately report the effect of changes in
foreign exchange rates from changes in market prices on securities held. Such
changes are included in net realized and unrealized gain or loss from
investments. Federal Income Taxes: It is the policy of the Funds to comply with
the provisions of the Internal Revenue Code applicable to "regulated
investment companies" and to distribute all of their taxable income to its
shareholders. Therefore, no provision for Federal income tax is required.
When-Issued and Delayed Delivery Transactions: The Funds may engage in when-
issued or delayed delivery transactions. To the extent a 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 market changes. At the time a
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. Dividends: Dividends to the shareholders
are paid quarterly and are reinvested in additional shares of each 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 realized capital gains, to the
extent available, will be distributed annually. Distributions to shareholders
are based on income tax regulations and therefore, their characteristics may
differ for financial statement and tax purposes. General: Securities
transactions are accounted for on a trade date basis. Interest income is accrued
as earned and dividend income is recorded on the ex-dividend date. Use of
Estimates: The preparation of financial statements, in conformity with generally
accepted accounting principles, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
Note 3 - Investment Advisory Fee And Other Transactions With Affiliates
Pursuant to an investment advisory agreement, Thornburg Management Company, Inc.
(the "Adviser") serves as the investment adviser and performs services to the
Funds for which the fees are payable at the end of each month. For the year
ended September 30, 1998, these fees were payable at annual rates ranging from
7/8 of 1% to 27/40 of 1% of the average daily net assets of the Value Fund and
Global Value Fund depending on each Fund's asset size. The Funds also have an
Administrative Services Agreement with the Adviser, whereby the Adviser will
perform certain administrative services for the shareholders of each class of
each 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. For the year ended September 30, 1998, the Adviser voluntarily waived
certain operating expenses amounting to $4,128 and $45,571 for the Value Fund
and Global Value Fund, respectively. The Funds have underwriting agreements with
Thornburg Securities Corporation (the "Distributor"), which acts as the
Distributor of the Funds' shares. For the year ended September 30, 1998, the
Distributor earned commissions aggregating $225,929 and $0 from the sale of
Class A shares of the Value Fund and Global Value Fund, respectively, and
collected contingent deferred sales charges aggregating $4,630 and $0 from
redemptions of Class C shares of the Value Fund and Global Value Fund,
respectively. Pursuant to a Service Plan under Rule 12b-1 of the Investment
Company Act of 1940, each Fund may reimburse to the Adviser an amount not to
exceed .25 of 1% annum of its average net assets attributable to each class of
shares of the Funds 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
each Fund's shares. The Funds have also adopted Distribution Plans pursuant to
Rule 12b-1, applicable only to each Fund's Class C shares under which the Funds
compensate the Distributor for services in promoting the sale of Class C shares
of the Funds at an annual rate of up to 1.00% of the average daily net assets
attributable to Class C shares. Total fees incurred by each class of shares of
the Funds under their respective Service and Distribution Plans for the year
ended September 30, 1998 are set forth in the statement of operations. Certain
officers and trustees of the Trust are also officers and/or directors of the
Adviser and Distributor. The compensation of unaffiliated trustees is borne by
the Trust.
Note 4 - Shares of Beneficial Interest
At September 30, 1998 there were an unlimited number of shares of beneficial
interest authorized. Sales of Class A and C Shares of the Global Value Fund
commenced May 28, 1998. Transactions in shares of beneficial interest were as
follows:
Thornburg Global Value Fund
Year Ended September 30, 1998
Shares Amount
Class A Shares
Shares sold 763,955 $ 9,049,328
Shares issued to shareholders in
reinvestment of dividends 1,886 18,467
Shares repurchased (6,217) (70,099)
Net Increase 759,624 $ 8,997,696
Class C Shares
Shares sold 85,018 $ 1,022,683
Shares issued to shareholders
in reinvestment of distributions 34 334
Shares repurchased (25,982) (310,048)
Net Increase 59,070 $ 712,969
Note 5 - Securities Transactions
For the year ended September 30, 1998 purchases and sales of investment
securities were $260,673,720 and $128,998,924 for the Thornburg Value Fund and
$11,786,903 and $2,421,899 for the Thornburg Global Value Fund, respectively.
The cost of investments for Federal income tax purpose is $189,734,445 and
$9,246,688 for the Value Fund and Global Value Fund, respectively. As of
September 30, 1998, the Value Fund and the Global Value Fund have deferred
capital losses and currency losses occurring subsequent to October 31, 1997
of $782,119 and $980,635 and $112,863 and $340,170, respectively. At September
30, 1998, gross unrealized appreciation and depreciation of investments,
based on cost for Federal income taxes were as follows:
Global Value
Fund Gross unrealized appreciation $63,324
Gross unrealized depreciation $1,313,917
Net unrealized appreciation (depreciation) $(1,250,593)
Note 6 - Financial Investments With Off-Balance Sheet Risk
During the year ended September 30, 1998, the Funds were parties to financial
instruments with off-balance sheet risks, primarily currency forward exchange
contracts. A forward exchange contract is an agreement between two parties to
exchange different currencies at a specified rate at an agreed upon future date.
These contracts are purchased in order to minimize the risk to each Fund with
respect to it's foreign stock holdings from adverse changes in the relationship
between the U.S. dollar and foreign currencies. In each case these contracts
have been initiated in conjunction with foreign stock holdings. These
instruments may involve market risks in excess of the amount recognized on the
Statements of Assets and Liabilities. Such risks would arise from the possible
inability of counterparties to meet the terms of their contracts, future
movement in currency value and interest rates and contract positions that are
not exact offsets. The contract amounts indicate the extent of each Fund's
involvement in such contracts. At September 30, 1998, the Funds had outstanding
forward exchange contracts for the sale of currencies as set out below. These
contracts are reported in the financial statements at each Fund's net equity, as
measured by the difference between the forward exchange rates at the reporting
date and the forward exchange rates at the dates of entry into the contract.
<TABLE>
Contracts to sell:
Global Value Fund
<CAPTION>
<C> <C>
277,200 Brazilian Real for 226,286, December 30, 1998 $12,891
413,260 Swiss Francs for 300,103, December 16, 1998 1,789
1,468,572 Deutschemarks for 845,554, December 16, 1988 37,253
22,968,906 Spanish Peseta for 153, 541, December 15, 1998 8,689
709,520 French Francs for 122,659, December 16, 1998 4,534
92,681 British Pound Sterling for 154,175, December 16, 1998 2,742
260,083,492 Italian Lira for 149,212, December 15, 1998 8,518
329,721 New Zealand Dollar for 170,763, December 16, 1998 5,675
1,961,584 Swedish Krona for 252,598, December 15, 1998 3,897
Unrealized gain from forward exchange contracts $85,988
2,320,910 Swiss Francs for 1,693,062, December 16, 1998 ($2,394)
5,178,469 Deutschemarks for 2,942,255, December 16, 1998 (170,339)
22,968,906 Spanish Peseta for 152,557, December 15, 1998 (9,673)
1,883,700 Finnish Markka for 368,234, December 15, 1998 (3,675)
3,922,650 French Franc for 660,148, December 16, 1998 (43,049)
565,037 British Pound Sterling for 920,351, December 16, 1998 (36,308)
260,083,492 Italian Lira for 148,666, December 15, 1998 (9,064)
1,131,700 Netherlands Guilder for 596,228, December 18, 1998 (7,314)
681, 056 Swedish Krona for 84, 982, December 15, 1998 (2,110)
Unrealized loss from forward exchange contracts ($283,926)
</TABLE>
<TABLE>
<CAPTION>
Financial highlights
Thornburg Global Value Fund
Per share operating performance (for a share outstanding throughout the period)
Period Ended
September 30,1998 (a)
Class A Shares:
<S> <C>
Net asset value, beginning of period $ 11.94
Income from investment operations:
Net investment income 0.03
Net realized and unrealized gain on investments (2.15)
Total from investment operations (2.12) Less dividends from:
Net investment income (0.03)
Change in net asset value (2.15)
Net asset value, end of period $ 9.79
Total Return (b) (17.80)%
Ratios/Supplemental Data Ratios to average net asset:
Net investment income 1.04%(c)
Expenses, after expense reductions 1.63%(c)
Expenses, before expense reductions 2.88%(c)
Portfolio turnover rate 44.66%
Net assets at end of period (000) $ 7,440
(a) Fund commenced operations on May 28, 1998.
(b) Sales loads are not reflected in computing total return, which is not
annualized in periods less than a year. (c) Annualized
Period Ended
September 30, 1998 (a)
Class C Shares:
Net asset value, beginning of period $ 11.94
Income from investment operations:
Net investment income 0.01
Net realized and unrealized gain on investments (2.17)
Total from investment operations (2.16) Less dividends from:
Net investment income (0.01)
Change in net asset value (2.17)
Net asset value, end of period $ 9.77
Total Return (b) (18.12)%
Ratios/Supplemental Data Ratios to average net asset:
Net investment income (0.02)%(c)
Expenses, after expense reductions 2.38%(c)
Expenses, before expense reductions 11.91%(c)
Portfolio turnover rate 44.66%
Net assets at end of period (000) $ 577
(a) Fund commenced operations on May 28, 1998.
(b) Sales loads are not reflected in computing total return, which is not
annualized in periods less than a year. (c) Annualized
</TABLE>
<TABLE>
Schedule of Investments
Thornburg Global Value Fund
September 30, 1998
<CAPTION>
<S> <C> <C>
COMMON STOCKS--89.70%
BANKING INSTITUTIONS (10.60%)
Bank Austria AG 6,200 $265,952
Julius Baer Holding AG 110 258,983
Republic New York Corporation 3,200 126,400
Verwaltungs und Privat-Bank AG 100 293,393
BATTERIES (3.70%)
Varta AG 1,880 329,854
BUILDING MATERIALS (3.20%)
Dyckerhoff AG 895 286,730
CAPITAL EQUIPMENT (7.20%)
Rolls Royce Plc 117,500 405,516
Swisslog AG 2,500 235,439
CHEMICALS (2.90%)
DSM Chemical 3,100 261,715
DRUGS & HEALTH CARE (10.90%)
Merck KGaA 8,700 351,657
Pharmacia & Upjohn Inc. 6,700 336,256
Rhone Poulenc S.A. 6,700 281,171
FINANCIAL SERVICES (4.00%)
SLM Holding Corporation 11,000 356,812
FOOD & BEVERAGES (3.80%)
Hero AG B 600 339,032
FOREST PRODUCTS (4.10%)
UPM Kymmene OYJ 16,100 368,896
HOUSEHOLD PRODUCTS (4.20%)
Henkel KGaA Preferred 5,000 378,904
HOTELS & RESTAURANTS (2.50%)
Movenpick Holding AG 500 224,573
INSURANCE (3.50%)
Annuity And Life Re Holdings + 15,800 312,050
MINING (5.00%)
Billiton Plc 200,000 444,576
PETROLEUM SERVICES (3.90%)
Royal Dutch Petroleum Company 7,000 347,519
REAL ESTATE INVESTMENT TRUSTS (4.60%)
Annaly Mortgage Management, Inc. 50,000 406,250
RETAIL (2.20%)
Karstadt AG 400 195,934
TELECOMMUNICATION SERVICES (3.10%)
Telecom Corporation Of New Zealand ADR 5,700 171,713
Telesp Celular S.A. + 4,200,000 104,588
TIRES & RUBBER (2.90%)
Michelin 6,500 255,366
TOBACCO (3.00%)
Swedish Match AB 84,700 263,691
CLOSED END FUNDS (4.40%)
Central European Equity Fund 13,700 150,700
Germany Fund 8,500 123,250
New Germany Fund 8,400 119,175
TOTAL COMMON STOCKS (Cost $9,163,784) 7,996,095
TOTAL INVESTMENTS (Cost $9,163,784)* $ 7,996,095
See notes to financial statements.
</TABLE>
