THORNBURG
LIMITED TERM
U.S. GOVERNMENT FUND
THORNBURG
LIMITED TERM
INCOME FUND
<logo>
Fund Profile
February ___, 1999
This Profile summarizes key information about the Funds that is included in
the Funds' prospectus. The Funds' prospectus includes additional
information about the Funds, including a more detailed description of the
risks associated with investing in the Funds that you may want to consider
before you invest. You may obtain the prospectus and other information
about the Funds at no cost by calling 800-847-0200.
<PAGE>
1. Investment Goal
Each Fund's primary investment goal is to provide, through investment in a
portfolio of fixed income obligations, as high a level of income as is
consistent, in the view of the Funds' investment adviser, with safety of
capital. Each Fund also seeks to reduce flunctuations in its shore price
compared to longer term portfolios.
No assurance can be given that these goals will be achieved.
2. Principal Investment Strategy of the Funds
Limited Term U.S. Government Fund attempts to realize its primary goal by
investing mainly in obligations issued or guaranteed by the United States
Government or its agencies and instrumentalities, and in participations in
such obligations or in repurchase agreements secured by such obligations.
Limited Term Income Fund attempts to realize its primary goal by investing
primarily in investment grade short and intermediate maturity bonds and in
asset backed securities. Each Fund also seeks to reduce fluctuations in
its share price compared to longer term portfolios by maintaining a
portfolio of investments with a dollar-weighed average portfolio maturity
of not more than five years.
3. Principal Risks
The value of a Fund's shares and its dividends will fluctuate in response
to changes in interest rates. Additionally, variations in interest rates
may result in prepayments of certain obligations the Funds will acquire.
These prepayments may require a Fund to reinvest at a lower rate of return,
and may reduce a Fund's net asset value because the value of such
securities may not appreciate as rapidly as non-callable debt securities.
Obligations owned by Limited Term Income Fund may be subject to default, or
could be downgraded by ratings agencies, reducing the value of Income
Fund's shares. The loss of money is a risk of investing in each Fund, and
when you sell your shares they may be worth more or less than what you paid
for them.
Prospective investors should consider how the Funds' investment returns may
vary each year, and the Funds' share values may go down in some periods.
The following bar charts shows how a Fund's annual total returns for Class
A shares have been different in each full year since it began operations.
The accompanying average annual total return figures compare the
performance of Government Funds' Class A and Class C shares to the Lehman
Brothers Intermediate Government Bond Index and Company Income Fund's Class
A and Class C shares to the Lehman Brothers Intermediate Corporate Bond
Index. This information gives some indication of the risks of investing in
each Fund by showing changes in performance from year to year and by
showing how the Fund's average annual total returns for the periods shown
compare with a broad measure of market performance.
<The following are presented as bar graphs in the Profile>
Limited Term U.S. Government Fund Annual Total Returns for Class A Shares
- -------------------------------------------------------------------------
15%
12.98% 12.53%
10% 10.58%
6.58% 6.19% 7.38% 8.95% 6.14%
5%
4.29%
0%
(2.07%)
- -5% 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
The year-to-date return for the nine months ending September 30, 1998 was
6.85%. During the 10-year period shown in the bar chart, the highest
return for a quarter was 5.03% (quarter ending June 30,1989), and the
lowest return for a quarter was 1.52% (quarter ending March 31, 1994). The
Government Fund commenced operations on November 16, 1987.
Limited Term U.S. Government Fund Average Annual Total Returns
Class A and Class C Shares
- --------------------------------------------------------------
One Year Five Years Ten Years
Ended Ended Ended
12-31-97 12-31-97 12-31-97
Class A Shares 3.88% 4.94% 7.00%
Class C Shares 5.71% N/A N/A
Lehman Intermediate
Government Bond Index 8.04% 6.49% 8.18%
Limited Term Income Fund Annual Total Returns for Class A Shares
- -----------------------------------------------------------------
15.42%
15%
10%
5.58% 7.58% 9.57%
5%
0%
(3.04%)
- -5% 1997 1996 1995 1994 1993
The year-to-date return for the nine months ending September 30, 1998 was
5.77%. During the five-year period shown in the bar chart, the highest
return for a quarter was 4.87% (quarter ending June 30, 1995), and the
lowest return for a quarter was 2.45% (quarter ending December 31, 1994).
The Income Fund commenced operations on October 1, 1992.
Limited Term Income Fund Average Annual Total Returns
Class A and Class C Shares
- --------------------------------------------------------
One Year Five Years
Ended Ended
12-31-97 12-31-97
Class A Shares 2.94% 6.30%
Class C Shares 4.66% N/A
Lehman Intermediate
Corporate Bond Index 7.87% 6.58%
The sales charge for Class A shares was not reflected in the returns shown
in the bar charts, and the returns would be less if the sales charge was
taken into account. The figures shown in the average annual total return
table do reflect maximum sales charges imposed, assuming a redemption at
the end of each period shown. A Fund's performance in the past is not
necessarily an indication of how the Fund will perform in the future.
4. Fees and Expenses of the Funds
The following tables describe the fees and expenses that you may pay if you
buy and hold shares of a Fund.
Thornburg Limited Term U.S. Government Fund
Shareholder Fees (fees paid directly from your investment)
- ----------------
Limited Term U.S. Government Fund Class A Class C
------- -------
Maximum Sales Charge (Load) imposed on 2.50% none
purchases (as a percentage of offering price)
Maximum Deferred Sales Charge (Load) (as a 0.50%* 0.50%**
percentage of the lesser of redemption proceeds
or original offering price)
* imposed only on redemptions of purchases greater than $1 million in
the event of a redemption within 12 months of purchase
** imposed only on redemptions of Class C shares within 12 months
of purchase
Annual Fund Operating Expenses (expenses that are deducted
- ------------------------------ from Fund assets)
Limited Term U.S. Government Class A Class C
Management Fee .38% .38%
Distribution and Service (12b-1) Fees .25% 1.00%
Other Expenses .35% .83%
---- -----
Total Annual Fund Operating Expenses .98% 2.21%
Expenses reflect rounding. Thornburg Management Company, Inc. (TMC) and
Thornburg Securities Corporation (TSC) intend to waive a portion of the
Class C 12b-1 fees, and TMC intends to reimburse a portion of the Class C
other expenses, so that actual Class C 12b-1 fees are .50%, actual Class C
other expenses are .52%, and actual total Fund operating expenses for Class
C are 1.40%. TMC's and TSC's waiver of fees and TMC's reimbursement of
expenses may be terminated at any time.
Example. This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time
periods indicated and redeem all of your shares at the end of these
periods. The Example also assumes that your investment has a 5% return
each year and that the Fund's operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your
costs would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $347 $553 $777 $1,421
Class C Shares $276 $696 $1,195 $2,570
You would pay the following expenses if you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $347 $553 $777 $1,421
Class C Shares $226 $696 $1,194 $2,570
Thornburg Limited Term Income Fund
Shareholder Fees (fees paid directly from your investment)
- ---------------
Limited Term Income Fund Class A Class C
------- -------
Maximum Sales Charge (Load)imposed on 2.50% none
purchases as a percentage of offering price)
Maximum Deferred Sales Charge (Load) 0.50 0.50%**
as a percentage of the lesser of redemption
proceeds or original offering price)
* imposed only on redemptions of purchases greater than $1 million in
the event of a redemption within 12 months of purchase.
** impose only on redemptions of Class C shares within 12 months of
purchase
Annual Fund Operating Expenses (expenses that are deducted
- ----------------------------- from Fund assets) Class A Class C
Limited Term Income Fund ------- -------
Management Fee .50% .50%
Distribution and Service (12b-1) Fees .25% 1.00%
Other Expenses .47% .80%
------- -------
Total Annual Fund Operating Expenses 1.22% 2.30%
Expenses reflect rounding. Thornburg Management Company, Inc. (TMC)
intends to reimburse a portion of the Class A other expenses, so that
actual Class A other expenses are .25%, and actual total fund operating
expenses are 1.00%. TMC and Thornburg Securities Corporation (TSC) intend
to waive a portion of the Class C 12b-1 fees, and TMC intends to reimburse
a portion of the Class C other expenses, so that actual Class C 12b-1
expenses are .50%, actual Class C other expenses are .40%, and actual total
fund operating expenses for Class C are 1.40%. TMC's and TSC's waiver of
fees and TMC's reimbursement of expenses may be terminated at any time.
Example. This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time
periods indicated and redeem all of your shares at the end of these
periods. The Example also assumes that your investment has a 5% return
each year and that the Fund's operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your
costs would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $372 $630 $909 $1,706
Class C Shares $285 $727 $1,246 $2,674
You would pay the following expenses if you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $372 $630 $909 $1,706
Class C Shares $236 $727 $1,246 $2,674
5. Investment Adviser and Portfolio Managers
The Fund's investment adviser is Thornburg Management Company, Inc. (TMC),
providing investment management and administrative services. Steven J.
Bohlin, who is a managing director of TMC, is the portfolio manager for the
Funds, and has served in that capacity for the Government Fund since 1988
and for the Income Fund since its inception in 1992. Mr. Bohlin is
assisted by other employees of TMC in managing the Funds' portfolios.
6. Purchase of Fund Shares
Each Fund offers multiple classes of shares. Purchases of Class A and
Class C shares are described below.
Sales Charge Sales Charge
as a percentage as a percentage
Purchase Amount of Offering Price of Net Asset Value
- --------------- ----------------- ------------------
[S] [C] [C]
Less than $50,000 2.50% 2.56%
$50,000 to 99,999.99 2.25% 2.30%
$100,000 to 249,999.99 1.75% 1.78%
$250,000 to 499,999.99 1.50% 1.52%
$500,000 to 999,999.99 1.00% 1.01%
$1,000,000 and up 0.00% 0.00%
No sales charge will be payable at the time of purchase on investments of
$1 million or more made by a purchaser. A contingent deferred sales
charge will be imposed on these investments in the event of a share
redemption within 1 year following the share purchase at the rate of 1/2
of 1% of the value of the shares redeemed.
Shareholders who sign a letter of intent to purchase more than $50,000 over
13 months may buy Class A shares at a reduced sales charge. Certain
shareholders may buy Class A shares at no sales charges:
1. shareholders who purchase shares within 24 months of redeeming
Class A shares;
2. customers of trust companies or bank trust departments;
3. customers of fee for service financial advisers;
4. shareholders investing through a dealer's wrap program;
5. shareholders whose orders are placed through certain brokers
maintaining omnibus accounts.
Class C shares are sold at net asset value, but are subject to higher
annual expenses and a 1/2 of 1% contingent deferred sales charge if
redeemed within one year of purchase.
The minimum purchase to open an account is $5,000 but automatic investment
plans may be opened with $100. Minimum additional purchase for any account
is $100. Purchases may be made by mail, through your financial advisor or
by telephone.
7. Redeeming Fund Shares
You can withdraw money from your Fund account on any Fund business day by
redeeming some or all of your shares (selling them back to the Fund either
directly or through your financial advisor). Your shares will be purchased
by the Fund at the net asset value next computed after your order is
received in proper form. If your purchase was subject to a contingent
deferred sales charge within one year of purchase, the charge will be
deducted. You may redeem Fund shares by mail, through your financial
advisor, or by telephone. if you have previously signed up for the
telephone redemption feature.
8. Distributions
Each Fund distributes substantially all of its net income and realized
capital gains to shareholders each year. Each Fund declares its net
investment income daily and distributes it monthly. Each Fund will
distribute any net realized capital gains at least annually. Distributions
are reinvested automatically in additional shares unless you elect to
receive them in cash. Any distributions of long-term capital gains are
taxed as long-term capital gains.
9. Other Fund Services
* Thornburg Funds telephone representatives: Monday through Friday from
7:30 a.m. to 4:30 p.m. Mountain Time, at 1-800-847-0200.
* Thornburg Funds Audio Response System: 24 hours a day, 7 days a week.
Call 1-800-847-0200.
* The Automatic Investment Plan: transfer as little as $100 from your bank
account on a weekly, monthly or quarterly basis.
* Exchange Class A shares of any other Thornburg Fund for Class A
shares of the Fund without paying any additional sales charge.
* Website: Contact Thornburg on the Internet at www.Thornburg.com
Contact your financial advisor or the Fund for more information on these and
other services available to you.
Please call 1-800-847 or your financial adviser for an application to
purchase shares of the Funds. A copy of the Funds' prospectus will be sent
to you with the application.
<LOGO>
Thornburg Funds
Investing With Integrity
Thornburg Securities Corporation, Distributor
119 East Marcy Street, Santa Fe, New Mexico 87501
800-847-0200
www.thornburg.com e-mail: [email protected]
<PAGE>
THORNBURG Rule 497(k)(1)(i)
INTERMEDIATE
MUNICIPAL
FUND
<logo>
Fund Profile
February ___, 1999
This Profile summarizes key information about the Fund that is included in
the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the
risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
about the Fund at no cost by calling 800-847-0200.
<PAGE>
1. Investment Goal
The Fund's primary goal is providing as high a level of current income
exempt from federal income tax as is consistent, in the view of the Fund's
investment adviser, with preservation of capital. Its secondary goal is to
reduce fluctuations in its share price relative to long-term municipal bond
portfolios.
No assurance can be given that these goals will be achieved.
2. Principal Investment Strategy of the Fund
The Fund pursues its primary goal by investing in investment grade or
equivalent obligations which are issued by states and state agencies, and
local governments and agencies and by United States territories and
possessions. The Fund seeks its secondary goal of reducing share price
fluctuations by maintaining a dollar-weighted average portfolio maturity
normally between three and ten years.
3. Principal Risks
The value of Fund shares and its dividends will fluctuate in response to
changes in interest rates. The value of fund shares could be reduced if
municipal obligations held by the Fund were downgraded by rating agencies,
or went into default, or if legislation reduces the ability of issuers to
pay principal and interest when due or changes the tax treatment of
interest on municipal obligations. The loss of money is a risk of
investing in the Fund, and when you sell your shares they may be worth more
or less than what you paid for them.
Prospective investors should consider how the Fund's investment returns may
vary each year, and the Fund's share value may go down in some periods.
The following bar chart shows how the Fund's annual total returns for Class
A shares have been different in each full year since it began operations.
The accompanying average annual total return figures compare the
performance of the Fund's Class A and Class C shares to the Merrill Lynch
Municipal Bond (7-12 Year) Index. This information gives some indication
of the risks of investing in the Fund by showing changes in performance
from year to year and by showing how the Fund's average annual total
returns for the periods shown compare with a broad measure of market
performance.
<The following is presented as a bar graph in the Profile>
Intermediate Municipal Fund Annual Total Returns Class A Shares
- ---------------------------------------------------------------
15%
13.22% 12.29%
10% 9.81%
5% 4.45%
0% 0.72%
(2.48)%
- -5 1997 1996 1995 1994 1993 1992
The year-to-date return for the nine months ending September 30, 1998 was
4.97%. During the six-year period shown in the bar chart, the highest
return for a quarter was 4.91% (quarter ending March 31, 1995), and the
lowest return for a quarter was (3.33)% (quarter ending March 31, 1994).
The Fund commenced operations on July 23, 1991.
Intermediate Municipal Fund Average Annual Total Returns
Class A and Class C Shares
- --------------------------------------------------------
One Year Five Years
Ended Ended
12-31-97 12-31-97
-------- ----------
Class A Shares 3.47% 6.02%
Class C Shares 6.17% N/A
Merrill Lynch 8.98% 7.06%
Municipal Bond
Index (7-12 Years)
The sales charge for Class A shares was not reflected in the returns shown
in the bar chart, and the returns would be less if the sales charge was
taken into account. The figures shown in the average annual total return
table do reflect maximum sales charges imposed, assuming a redemption at
the end of each period shown. The Fund's performance in the past is not
necessarily an indication of how the Fund will perform in the future.
4. Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you
buy and hold shares of the Fund.
Shareholder Fees (fees paid directly from your investment)
- ----------------
Intermediate Municipal Fund Class A Class C
------- -------
Maximum Sales Charge (Load) imposed on 3.50% none
purchases (as a percentage of offering price)
Maximum Deferred Sales Charge (Load) (as a 0.50%* 0.60%**
percentage of the lesser of redemption proceeds
or original offering price)
* imposed only on redemptions of purchases greater than $1 million in
the event of a redemption within 12 months of purchase
** imposed only on redemptions of Class C shares within 12 months
of purchase
Annual Fund Operating Expenses (expenses that are deducted
- ------------------------------ from Fund assets)
Intermediate Municipal Fund Class A Class C
Management Fee .50% .50%
Distribution and Service (12b-1) Fees .25% 1.00%
Other Expenses .29% .43%
---- -----
Total Annual Operating Expenses 1.04% 1.93%
Expenses reflect rounding. Thornburg Management Company, Inc. (TMC)
intends to reimburse a portion of the Fund's other expenses, and TMC and
Thornburg Securities Corporation (TSC) intend to waive a portion of the
Class C 12b-1 fees, so that the Fund's actual other expenses are .25% and
.30% for Class A and Class C shares, respectively, actual Class C 12b-1
expenses are .60%, and actual total annual operating expenses are 1.00% and
1.40% for Class A and Class C shares, respectively. TMC's and TSC's
waivers and reimbursements of these fees and expenses may be terminated at
any time.
Example. This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time
periods indicated and redeem all of your shares at the end of these
periods. The Example also assumes that your investment has a 5% return
each year and that the Fund's operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your
costs would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $453 $671 $908 $1,589
Class C Shares $258 $613 $1,054 $2,283
You would pay the following expenses if you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $453 $671 $908 $1,589
Class C Shares $198 $613 $1,054 $2,283
5. Investment Adviser and Portfolio Managers
The Fund's investment adviser is Thornburg Management Company, Inc. (TMC),
providing investment management and administrative services. Brian J.
McMahon and George Strickland, both of whom are managing directors of TMC,
are the portfolio managers for the Fund. Mr. McMahon has managed municipal
bond portfolios for TMC since 1984, and Mr. Strickland has performed
municipal bond credit analysis and management since joining TMC in 1991.
Mr. McMahon and Mr. Strickland are assisted by other employees of TMC in
managing the Fund's portfolio.
6. Purchase of Fund Shares
The Fund offers multiple classes of shares. Purchases of Class A and
Class C shares are described below.
Sales Charge
as a percentage as a percentage
Purchase Amount of Offering Price of Net Asset Value
- --------------- ----------------- ------------------
[S] [C] [C]
Less than $50,000 3.50% 3.63%
$50,000 to 99,999.99 3.00% 3.09%
$100,000 to 249,999.99 2.50% 2.56%
$250,000 to 499,999.99 2.00% 2.04%
$500,000 to 999,999.99 1.50% 1.52%
$1,000,000 and up 0.00% 0.00%
No sales charge will be payable at the time of purchase on investments of
$1 million or more made by a purchaser. A contingent deferred sales
charge will be imposed on these investments in the event of a share
redemption within 1 year following the share purchase at the rate of 1/2
of 1% of the value of the shares redeemed.
Shareholders who sign a letter of intent to purchase more than $50,000 over
13 months may buy Class A shares at a reduced sales charge. Certain
shareholders may buy Class A shares at no sales charges, including the
following:
1. shareholders who purchase shares within 24 months of redeeming
Class A shares;
2. customers of trust companies or bank trust departments;
3. customers of fee for service financial advisers;
4. shareholders investing through a dealer's wrap program;
5. shareholders whose orders are placed through certain brokers
maintaining omnibus accounts.
Class C shares are sold at net asset value, but are subject to higher
annual expenses and a .60% contingent deferred sales charge if redeemed
within one year of purchase.
The minimum purchase to open an account is $5,000 but automatic investment
plans may be opened with $100. Minimum additional purchase for any account
is $100. Minimum account size is $1,000, and accounts falling below that
amount will be redeemed. Purchases may be made by mail, through your
financial advisor or by telephone.
7. Redeeming Fund Shares
You can withdraw money from your Fund account on any Fund business day by
redeeming some or all of your shares (selling them back to the Fund either
directly or through your financial advisor). Your shares will be purchased
by the Fund at the net asset value next computed after your order is
received in proper form. If your purchase was subject to a contingent
deferred sales charge within one year of purchase, the charge will be
deducted. You may redeem Fund shares by mail, through your financial
advisor, or by telephone, if you have previously signed up for the
telephone redemption feature.
8. Distributions
The Fund distributes substantially all of its net income and realized
capital gains to shareholders each year. The Fund declares its net
investment income daily and distributes it monthly. the Fund will
distribute any net realized capital gains at least annually. Distributions
are reinvested automatically in additional shares unless you elect to
receive them in cash. Income dividends attributable to tax exempt
municipal obligations owned by the Fund are exempt from federal personal
income tax, but some portion of these dividends could be subject to the
alternative minimum tax. Income dividends may not be exempt from state
income taxes or taxes imposed on persons who are not individuals.
Dividends attributable to market discount on portfolio securities and
distributions of net short-term capital gains are taxable as ordinary
income. Any distributions of long-term capital gains are taxed as long-
term capital gains.
9. Other Fund Services
* Thornburg Funds telephone representatives: Monday through Friday from
7:30 a.m. to 4:30 p.m. Mountain Time, at 1-800-847-0200.
* Thornburg Funds Audio Response System: 24 hours a day, 7 days a week.
Call 1-800-847-0200.
* The Automatic Investment Plan: transfer as little as $100 from your bank
account on a weekly, monthly or quarterly basis.
* Exchange Class A shares of any other Thornburg Fund for Class A
shares of the Fund without paying any additional sales charge.
* Website: Contact Thornburg on the Internet at www.Thornburg.com
Contact your financial advisor or the Fund for more information on these and
other services available to you.
Please call 1-800-847 or your financial adviser for an application to
purchase shares of the Fund. A copy of the Fund's prospectus will be sent
to you with the application.
<LOGO>
Thornburg Funds
Investing With Integrity
Thornburg Securities Corporation, Distributor
119 East Marcy Street, Santa Fe, New Mexico 87501
800-847-0200
www.thornburg.com e-mail: [email protected]
<PAGE>
THORNBURG
NEW MEXICO
INTERMEDIATE
MUNICIPAL
FUND
<logo>
Fund Profile
February ___, 1998
This Profile summarizes key information about the Fund that is included in
the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the
risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
about the Fund at no cost by calling 800-847-0200.
<PAGE>
1. Investment Goal
The Fund's primary goal is providing as high a level of current income
exempt from federal income tax and New Mexico individual income taxes as is
consistent, in the view of the Fund's investment adviser, with preservation
of capital. Its secondary goal is to reduce fluctuations in its net asset
value relative to long-term municipal bond portfolios.
No assurance can be given that these goals will be achieved.
2. Principal Investment Strategy of the Fund
The Fund pursues its primary goal by investing in investment grade or
equivalent obligations which are issued by the State of New Mexico, its
political subdivisions, and their agencies and instrumentalities, and by
United States territories and possessions. The Fund pursues its secondary
goal of reducing share price fluctuates by maintaining a dollar-weighted
average portfolio maturity normally between three and ten years.
3. Principal Risks
The value of Fund shares and its dividends will fluctuate in response to
changes in interest rates. The value of fund shares could be reduced if
municipal obligations held by the Fund were downgraded by rating agencies,
or went into default, or if legislation reduces the ability of issuers to
pay principal and interest when due or changes the tax treatment of
interest on municipal obligations. The loss of money is a risk of
investing in the Fund, and when you sell your shares they may be worth more
or less than what you paid for them.
The Fund is a nondiversified investment company. This means that it may
invest a quarter proportion of its assets in the securities of a single
issue. This may be riskier, because a default or other adverse condition
affecting an issue in which the Fund invested a high proportion of its
assets could cause the Fund's share price to decline to a greater degree
than if its assets were more diversified. The Fund's policy of investing
primarily in municipal securities originating in New Mexico also subjects
the Fund to greater risk than a mutual fund which invests in municipal
securities from a number of states.
Prospective investors should consider how the Fund's investment returns may
vary each year, and the Fund's share value may go down in some periods.
The following bar chart shows how the Fund's annual total returns for Class
A shares have been different in each full year since it began operations.
The accompanying average annual total return figures compare the
performance of the Fund's Class A shares to the Merrill Lynch Municipal
Bond (7-12 Year) Index. This information gives some indication of the
risks of investing in the Fund by showing changes in performance from year
to year and by showing how the Fund's average annual total returns for the
periods shown compare with a broad measure of market performance.
<The following is presented as a bar graph in the Profile>
Intermediate Municipal Fund Annual Total Returns Class A Shares
- --------------------------------------------------------------
15%
11.15 10.31
10%
6.49 8.63
5%
0.42 (1.19)
0%
- -5% 1997 1996 1995 1994 1993 1992
The year-to-date return for the nine months ending September 30, 1998 was
4.17%. During the six-year period shown in the bar chart, the highest
return for a quarter was 4.43% (quarter ending March 31, 1995), and the
lowest return for a quarter was 2.91% (quarter ending March 31, 1995). The
Fund commenced operations on July 23, 1991.
Intermediate New Mexico Municipal Fund Average Annual Total Returns
Class A and Class C Shares
- -------------------------------------------------------------------
One Year Five Years
Ended Ended
12-31-97 12-31-97
Class A Shares 2.75% 5.19%
Merrill Lynch Bond Index 8.98% 7.06%
The sales charge for Class A shares was not reflected in the returns shown
in the bar chart, and the returns would be less if the sales charge was
taken into account. The figures shown in the average annual total return
table do reflect maximum sales charges imposed, assuming a redemption at
the end of each period shown. The Fund's performance in the past is not
necessarily an indication of how the Fund will perform in the future.
4. Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you
buy and hold shares of the Fund.
Shareholder Fees (fees paid directly from your investment)
- ----------------
Intermediate New Mexico Municipal Fund Class A
-------
Maximum Sales Charge (Load) imposed on 3.50%
purchases (as a percentage of offering price)
Maximum Deferred Sales Charge (Load) (as a 0.50%*
percentage of the lesser of redemption proceeds
or original offering price)
* imposed only on redemptions of purchases greater than $1 million in
the event of a redemption within 12 months of purchase
Annual Fund Operating Expenses (expenses that are deducted
- ------------------------------ from Fund assets)
Intermediate New Mexico Municipal Fund Class A
Management Fee .50%
Distribution and Service (12b-1) Fees .25%
Other Expenses .26%
----
Total Annual Operating Expenses 1.01%
Expenses reflect rounding. Thornburg Management Company, Inc. (TMC)
intends to reimburse a portion of the Fund's other expenses, so that the
Fund's actual other expenses are .25% and actual total annual operating
expenses are 1.00% for Class A shares. TMC's reimbursements of these
expenses may be terminated at any time.
Example. This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time
periods indicated and redeem all of your shares at the end of these
periods. The Example also assumes that your investment has a 5% return
each year and that the Fund's operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your
costs would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $451 $665 $898 $1,566
You would pay the following expenses if you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $451 $665 $898 $1,566
5. Investment Adviser and Portfolio Managers
The Fund's investment adviser is Thornburg Management Company, Inc. (TMC),
providing investment management and administrative services. Brian J.
McMahon and George Strickland, both of whom are managing directors of TMC,
are the portfolio managers for the Fund. Mr. McMahon has managed municipal
bond portfolios for TMC since 1984, and Mr. Strickland has performed
municipal bond credit analysis and management since joining TMC in 1991.
Mr. McMahon and Mr. Strickland are assisted by other employees of TMC in
managing the Fund's portfolio.
6. Purchase of Fund Shares
The Fund is authorized to issue multiple classes of shares, but currently
offers only Class A shares.
Sales Charge
as a percentage as a percentage
Purchase Amount of Offering Price of Net Asset Value
- --------------- ----------------- ------------------
[S] [C] [C]
Less than $50,000 3.50% 3.63%
$50,000 to 99,999.99 3.00% 3.09%
$100,000 to 249,999.99 2.50% 2.56%
$250,000 to 499,999.99 2.00% 2.04%
$500,000 to 999,999.99 1.50% 1.52%
$1,000,000 and up 0.00% 0.00%
No sales charge will be payable at the time of purchase on investments of
$1 million or more made by a purchaser. A contingent deferred sales
charge will be imposed on these investments in the event of a share
redemption within 1 year following the share purchase at the rate of 1/2
of 1% of the value of the shares redeemed.
Shareholders who sign a letter of intent to purchase more than $50,000 over
13 months may buy Class A shares at a reduced sales charge. Certain
shareholders may buy Class A shares at no sales charges:
1. shareholders who purchase shares within 24 months of redeeming
Class A shares;
2. customers of trust companies or bank trust departments;
3. customers of fee for service financial advisers;
4. shareholders investing through a dealer's wrap program;
5. shareholders whose orders are placed through certain brokers
maintaining omnibus accounts.
The minimum purchase to open an account is $5,000 but automatic investment
plans may be opened with $100. Minimum additional purchase for any account
is $100. Purchases may be made by mail, through your financial advisor or
by telephone.
7. Redeeming Fund Shares
You can withdraw money from your Fund account on any Fund business day by
redeeming some or all of your shares (selling them back to the Fund either
directly or through your financial advisor). Your shares will be purchased
by the Fund at the net asset value next computed after your order is
received in proper form. If your purchase was subject to a contingent
deferred sales charge within one year of purchase, the charge will be
deducted. You may redeem Fund shares by mail, through your financial
advisor, or by telephone. if you have previously signed up for the
telephone redemption feature.
8. Distributions
The Fund distributes substantially all of its net income and realized
capital gains to shareholders each year. The Fund declares its net
investment income daily and distributes it monthly. The Fund will
distribute any net realized capital gains at least annually. Distributions
are reinvested automatically in additional shares unless you elect to
receive them in cash. Income dividends attributable to tax exempt
municipal obligations owned by the Fund are exempt from federal personal
income tax, but some portion of these dividends could be subject to the
alternative minimum tax. Dividends attributable to market discount on
portfolio securities and distributions of net short-term capital gains are
taxable as ordinary income. Any distributions of long-term capital gains
are taxed as long-term capital gains.
Individual shareholders are not subject to New Mexico income taxes on
interest dividends attributable to obligations originating in New Mexico.
Distributions of capital gains, and dividends attributable to market
discount on portfolio securities are subject to New Mexico income taxes.
9. Other Fund Services
* Thornburg Funds telephone representatives: Monday through Friday from
7:30 a.m. to 4:30 p.m. Mountain Time, at 1-800-847-0200.
* Thornburg Funds Audio Response System: 24 hours a day, 7 days a week.
Call 1-800-847-0200.
* The Automatic Investment Plan: transfer as little as $100 from your bank
account on a weekly, monthly or quarterly basis.
* Exchange Class A shares of any other Thornburg Fund for Class A
shares of the Fund without paying any additional sales charge.
* Website: Contact Thornburg on the Internet at www.Thornburg.com
Contact your financial advisor or the Fund for more information on these and
other services available to you.
Please call 1-800-847 or your financial adviser for an application to
purchase shares of the Fund. A copy of the Fund's prospectus will be sent
to you with the application.
<LOGO>
Thornburg Funds
Investing With Integrity
Thornburg Securities Corporation, Distributor
119 East Marcy Street, Santa Fe, New Mexico 87501
800-847-0200
www.thornburg.com e-mail: [email protected]
<PAGE>
THORNBURG
FLORIDA
INTERMEDIATE
MUNICIPAL
FUND
<logo>
Fund Profile
February ___, 1998
This Profile summarizes key information about the Fund that is included in
the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the
risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
about the Fund at no cost by calling 800-847-0200.
<PAGE>
1. Investment Goal
The Fund's primary goal is providing as high a level of current income
exempt from federal income tax as is consistent, in the view of the Fund's
investment adviser, with preservation of capital. The Fund also seeks
exemption from the Florida "intangibles" tax imposed by Florida on certain
securities held by individuals. Its secondary goal is to reduce
fluctuations in its net asset value relative to long-term municipal bond
portfolios.
No assurance can be given that these goals will be achieved.
2. Principal Investment Strategy of the Fund
The Fund pursues its primary goal by investing in investment grade or
equivalent obligations which are issued by the State of Florida and its
political subdivisions and agencies, and by United States territories and
possessions. The Fund pursues its secondary goal of reducing share price
fluctuations by maintaining a dollar-weighted average portfolio maturity
normally between three and ten years.
3. Principal Risks
The value of Fund shares and its dividends will fluctuate in response to
changes in interest rates. The value of fund shares could be reduced if
municipal obligations held by the Fund were downgraded by rating agencies,
or went into default, or if legislation reduces the ability of issuers to
pay principal and interest when due or changes the tax treatment of
interest on municipal obligations. The loss of money is a risk of
investing in the Fund, and when you sell your shares they may be worth more
or less than what you paid for them.
The Fund is a nondiversified investment company. This means that it may
invest a quarter proportion of its assets in the securities of a single
issue. This may be riskier, because a default or other adverse conditions
affecting an issue in which the Fund invested a high proportion of its
assets could cause the Fund's share price to decline to a greater degree
than if its assets were more diversified. The Fund's policy of investing
primarily in municipal securities originating in Florida also subjects the
Fund to greater risk than a mutual fund which invested in municipal
securities from a number of states.
Prospective investors should consider how the Fund's investment returns may
vary each year, and the Fund's share value may go down in some periods.
The following bar chart shows how the Fund's annual total returns for Class
A shares have been different in each full year since it began operations.
The accompanying average annual total return figures compare the
performance of the Fund's Class A shares to the Merrill Lynch Municipal
Bond (7-12 Year) Index. This information gives some indication of the
risks of investing in the Fund by showing changes in performance from year
to year and by showing how the Fund's average annual total returns for the
periods shown compare with a broad measure of market performance.
<The following is presented as a bar graph in the Profile>
Intermediate Florida Municipal Fund Annual Total Returns Class A Shares
- -----------------------------------------------------------------------
15%
12.19
10%
7.28
5%
4.67
0%
- -5% 1997 1996 1995
The year-to-date return for the nine months ending September 30, 1998 was
4.54%. During the three-year period shown in the bar chart, the highest
return for a quarter was 4.68% (quarter ending March 31, 1995), and the
lowest return for a quarter was 0.11% (quarter ending March 31, 1996). The
Fund commenced operations on February 1, 1994.
Intermediate Florida Municipal Fund Average Annual Total Returns
Class A Shares
- ----------------------------------------------------------------
One Year
Ended
12-31-97
Class A Shares 3.55%
Merrill Lynch Bond Index 8.98%
The sales charge for Class A shares was not reflected in the returns shown
in the bar chart, and the returns would be less if the sales charge was
taken into account. The figures shown in the average annual total return
table do reflect maximum sales charges imposed, assuming a redemption at
the end of each period shown. The Fund's performance in the past is not
necessarily an indication of how the Fund will perform in the future.
4. Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you
buy and hold shares of the Fund.
Shareholder Fees (fees paid directly from your investment)
- ----------------
Intermediate Florida Municipal Fund Class A
-------
Maximum Sales Charge (Load) imposed on 3.50%
purchases (as a percentage of offering price)
Maximum Deferred Sales Charge (Load) (as a 0.50%*
percentage of the lesser of redemption proceeds
or original offering price)
* imposed only on redemptions of purchases greater than $1 million in
the event of a redemption within 12 months of purchase
Annual Fund Operating Expenses (expenses that are deducted
- ------------------------------ from Fund assets)
Intermediate Florida Municipal Fund
Management Fee .50%
Distribution and Service (12b-1) Fees .25%
Other Expenses .36%
----
Total Annual Operating Expenses 1.11%
Expenses reflect rounding. Thornburg Management Company, Inc. (TMC)
intends to reimburse a portion of the Fund's other expenses, so that the
Fund's actual other expenses are .25% and actual total annual operating
expenses are 1.00%. TMC's reimbursements of these expenses may be
terminated at any time.
Example. This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time
periods indicated and redeem all of your shares at the end of these
periods. The Example also assumes that your investment has a 5% return
each year and that the Fund's operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your
costs would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $460 $693 $945 $1,668
You would pay the following expenses if you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $460 $693 $945 $1,668
5. Investment Adviser and Portfolio Managers
The Fund's investment adviser is Thornburg Management Company, Inc. (TMC),
providing investment management and administrative services. Brian J.
McMahon and George Strickland, both of whom are managing directors of TMC,
are the portfolio managers for the Fund. Mr. McMahon has managed municipal
bond portfolios for TMC since 1984, and Mr. Strickland has performed
municipal bond credit analysis and management since joining TMC in 1991.
Mr. McMahon and Mr. Strickland are assisted by other employees of TMC in
managing the Fund's portfolio.
6. Purchase of Fund Shares
The Fund is authorized to issue multiple classes of shares, but currently
offers only Class A shares.
Sales Charge
as a percentage as a percentage
Purchase Amount of Offering Price of Net Asset Value
- --------------- ----------------- ------------------
[S] [C] [C]
Less than $50,000 3.50% 3.63%
$50,000 to 99,999.99 3.00% 3.09%
$100,000 to 249,999.99 2.50% 2.56%
$250,000 to 499,999.99 2.00% 2.04%
$500,000 to 999,999.99 1.50% 1.52%
$1,000,000 and up 0.00% 0.00%
No sales charge will be payable at the time of purchase on investments of
$1 million or more made by a purchaser. A contingent deferred sales
charge will be imposed on these investments in the event of a share
redemption within 1 year following the share purchase at the rate of 1/2
of 1% of the value of the shares redeemed.
Shareholders who sign a letter of intent to purchase more than $50,000 over
13 months may buy Class A shares at a reduced sales charge. Certain
shareholders may buy Class A shares at no sales charges:
1. shareholders who purchase shares within 24 months of redeeming
Class A shares;
2. customers of trust companies or bank trust departments;
3. customers of fee for service financial advisers;
4. shareholders investing through a dealer's wrap program;
5. shareholders whose orders are placed through certain brokers
maintaining omnibus accounts.
The minimum purchase to open an account is $5,000 but automatic investment
plans may be opened with $100. Minimum additional purchase for any account
is $100. Purchases may be made by mail, through your financial advisor or
by telephone.
7. Redeeming Fund Shares
You can withdraw money from your Fund account on any Fund business day by
redeeming some or all of your shares (selling them back to the Fund either
directly or through your financial advisor). Your shares will be purchased
by the Fund at the net asset value next computed after your order is
received in proper form. If your purchase was subject to a contingent
deferred sales charge within one year of purchase, the charge will be
deducted. You may redeem Fund shares by mail, through your financial
advisor, or by telephone. if you have previously signed up for the
telephone redemption feature.
8. Distributions
The Fund distributes substantially all of its net income and realized
capital gains to shareholders each year. The Fund declares its net
investment income daily and distributes it monthly. The Fund will
distribute any net realized capital gains at least annually. Distributions
are reinvested automatically in additional shares unless you elect to
receive them in cash. Income dividends attributable to tax exempt
municipal obligations owned by the Fund are exempt from federal personal
income tax, but some portion of these dividends could be subject to the
alternative minimum tax. Dividends attributable to market discount on
portfolio securities and distributions of net short-term capital gains are
taxable as ordinary income. Any distributions of long-term capital gains
are taxed as long-term capital gains. Florida does not currently impose an
individual income tax. Income dividends may not be exempt from state
income taxes imposed by other states or taxes imposed on persons who are
not individuals. Florida imposes a personal property or "intangibles" tax
which is generally applicable to securities owned by individual residents
in Florida, but the intangibles tax will not apply to Fund shares if the
Fund's assets as of the close of the preceding calendar year consist only
of obligations of Florida and its political subdivisions and obligations of
the United States, Puerto Rico, Guam or the United States Virgin Islands.
9. Other Fund Services
* Thornburg Funds telephone representatives: Monday through Friday from
7:30 a.m. to 4:30 p.m. Mountain Time, at 1-800-847-0200.
* Thornburg Funds Audio Response System: 24 hours a day, 7 days a week.
Call 1-800-847-0200.
* The Automatic Investment Plan: transfer as little as $100 from your bank
account on a weekly, monthly or quarterly basis.
* Exchange Class A shares of any other Thornburg Fund for Class A
shares of the Fund without paying any additional sales charge.
* Website: Contact Thornburg on the Internet at www.Thornburg.com
Contact your financial advisor or the Fund for more information on these and
other services available to you.
Please call 1-800-847 or your financial adviser for an application to
purchase shares of the Fund. A copy of the Fund's prospectus will be sent
to you with the application.
<LOGO>
Thornburg Funds
Investing With Integrity
Thornburg Securities Corporation, Distributor
119 East Marcy Street, Santa Fe, New Mexico 87501
800-847-0200
www.thornburg.com e-mail: [email protected]
<PAGE>
THORNBURG
NEW YORK
INTERMEDIATE
MUNICIPAL
FUND
<logo>
Fund Profile
February ___, 1998
This Profile summarizes key information about the Fund that is included in
the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the
risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
about the Fund at no cost by calling 800-847-0200.
<PAGE>
1. Investment Goal
The Fund's primary goal is providing as high a level of current income
exempt from federal income tax and New York State and New York City
individual income taxes as is consistent, in the view of the Fund's
investment adviser, with preservation of capital. The Fund also seeks
exemption from the Florida "intangibles" tax imposed by Florida on certain
securities held by individuals. Its secondary goal is to reduce
fluctuations in its net asset value relative to long-term municipal bond
portfolios.
No assurance can be given that these goals will be achieved.
2. Principal Investment Strategies of the Fund
The Fund pursues its primary goal by investing in investment grade or
equivalent obligations which are issued by New York State and its agencies,
and local governments in New York State and their agencies, and by United
States territories and possessions. The Fund pursues its secondary goal of
reducing share price fluctuations by maintaining a dollar-weighted average
portfolio maturity normally between three and ten years.
3. Principal Risks
The value of Fund shares and its dividends will fluctuate in response to
changes in interest rates. The value of fund shares could be reduced if
municipal obligations held by the Fund were downgraded by rating agencies,
or went into default, or if legislation reduces the ability of issuers to
pay principal and interest when due or changes the tax treatment of
interest on municipal obligations. The loss of money is a risk of
investing in the Fund, and when you sell your shares they may be worth more
or less than what you paid for them.
The Fund is a nondiversified investment company. This means that it may
invest a quarter proportion of its assets in the securities of a single
issue. This may be riskier, because a default or other adverse condition
affecting an issuer in which the Fund invested a high proportion of its
assets could cause the Fund's share price to decline to a greater degree
than if its assets were more diversified. The Fund's policy of investing
primarily in municipal securities originating in New York also subjects the
Fund to greater risk than a mutual fund which invested in municipal
securities from a number of states.
Prospective investors should consider how the Fund's investment returns may
vary each year, and the Fund's share value may go down in some periods.
The following bar chart shows how the Fund's annual total returns for Class
A shares for the one full year the Fund has been in existence. The
accompanying average annual total return figures compare the performance of
the Fund's Class A shares to the Merrill Lynch Municipal Bond (7-12 Year)
Index. This information gives some indication of the risks of investing in
the Fund by showing how the Fund's average annual total return for the
period shown compares with a broad measure of market performance.
<The following is presented as a bar graph in the Profile>
Intermediate New York Municipal Fund Annual Total Returns Class A Shares
- ------------------------------------------------------------------------
15%
10%
5%
0%
- -5% [1998]
The year-to-date return for the nine months ending September 30, 1998 was
5.39%. During the one-year period shown in the bar chart, the highest
return for a quarter was _____% (quarter ending _______________), and the
lowest return for a quarter was _____% (quarter ending _________________).
The Fund commenced operations on September 5, 1997.
Intermediate New York Municipal Fund Average Annual Total Returns
Class A Shares
- ----------------------------------------------------------------
One Year
Ended
12-31-98
--------
Class A Shares
Merrill Lynch
Municipal Bond
Index (7-12 Years)
The sales charge for Class A shares was not reflected in the returns shown
in the bar chart, and the returns would be less if the sales charge was
taken into account. The figures shown in the average annual total return
table do reflect maximum sales charges imposed, assuming a redemption at
the end of each period shown. The Fund's performance in the past is not
necessarily an indication of how the Fund will perform in the future.
4. Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you
buy and hold shares of the Fund.
Shareholder Fees (fees paid directly from your investment)
- ----------------
Intermediate New York Municipal Fund Class A
-------
Maximum Sales Charge (Load) imposed on 3.50%
purchases (as a percentage of offering price)
Maximum Deferred Sales Charge (Load) (as a 0.50%*
percentage of the lesser of redemption proceeds
or original offering price)
* imposed only on redemptions of purchases greater than $1 million in
the event of a redemption within 12 months of purchase
Annual Fund Operating Expenses (expenses that are deducted
- ------------------------------ from Fund assets)
Intermediate New York Municipal Fund Class A
Management Fee .50%
Distribution and Service (12b-1) Fees .25%
Other Expenses .44%
----
Total Annual Operating Expenses 1.19%
Expenses reflect rounding. Thornburg Management Company, Inc. (TMC)
intends to reimburse a portion of the Fund's other expenses, so that the
Fund's actual other expenses are .25% for Class A shares, and actual total
annual operating expenses are 1.00% for Class A shares. TMC's
reimbursements of these expenses may be terminated at any time.
Example. This Example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time
periods indicated and redeem all of your shares at the end of these
periods. The Example also assumes that your investment has a 5% return
each year and that the Fund's operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your
costs would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $468 $717 $987 $1,757
You would pay the following expenses if you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $468 $717 $987 $1,757
5. Investment Adviser and Portfolio Managers
The Fund's investment adviser is Thornburg Management Company, Inc. (TMC),
providing investment management and administrative services. Brian J.
McMahon and George Strickland, both of whom are managing directors of TMC,
are the portfolio managers for the Fund. Mr. McMahon has managed municipal
bond portfolios for TMC since 1984, and Mr. Strickland has performed
municipal bond credit analysis and management since joining TMC in 1991.
Mr. McMahon and Mr. Strickland are assisted by other employees of TMC in
managing the Fund's portfolio.
6. Purchase of Fund Shares
The Fund is authorized to issue multiple classes of shares, but currently
offers only Class A shares. Purchases of Class A shares are described
below.
Sales Charge
as a percentage as a percentage
Purchase Amount of Offering Price of Net Asset Value
- --------------- ----------------- ------------------
[S] [C] [C]
Less than $50,000 3.50% 3.63%
$50,000 to 99,999.99 3.00% 3.09%
$100,000 to 249,999.99 2.50% 2.56%
$250,000 to 499,999.99 2.00% 2.04%
$500,000 to 999,999.99 1.50% 1.52%
$1,000,000 and up 0.00% 0.00%
No sales charge will be payable at the time of purchase on investments of
$1 million or more made by a purchaser. A contingent deferred sales
charge will be imposed on these investments in the event of a share
redemption within 1 year following the share purchase at the rate of 1/2
of 1% of the value of the shares redeemed.
Shareholders who sign a letter of intent to purchase more than $50,000 over
13 months may buy Class A shares at a reduced sales charge. Certain
shareholders may buy Class A shares at no sales charges:
1. shareholders who purchase shares within 24 months of redeeming
Class A shares;
2. customers of trust companies or bank trust departments;
3. customers of fee for service financial advisers;
4. shareholders investing through a dealer's wrap program;
5. shareholders whose orders are placed through certain brokers
maintaining omnibus accounts.
The minimum purchase to open an account is $5,000 but automatic investment
plans may be opened with $100. Minimum additional purchase for any account
is $100. Purchases may be made by mail, through your financial advisor or
by telephone.
7. Redeeming Fund Shares
You can withdraw money from your Fund account on any Fund business day by
redeeming some or all of your shares (selling them back to the Fund either
directly or through your financial advisor). Your shares will be purchased
by the Fund at the net asset value next computed after your order is
received in proper form. If your purchase was subject to a contingent
deferred sales charge within one year of purchase, the charge will be
deducted. You may redeem Fund shares by mail, through your financial
advisor, or by telephone. if you have previously signed up for the
telephone redemption feature.
8. Distributions
The Fund distributes substantially all of its net income and realized
capital gains to shareholders each year. The Fund declares its net
investment income daily and distributes it monthly. The Fund will
distribute any net realized capital gains at least annually. Distributions
are reinvested automatically in additional shares unless you elect to
receive them in cash. Income dividends attributable to tax exempt
municipal obligations owned by the Fund are exempt from federal personal
income tax, but some portion of these dividends could be subject to the
alternative minimum tax. Dividends attributable to market discount on
portfolio securities and distributions of net short-term capital gains are
taxable as ordinary income. Any distributions of long-term capital gains
are subject to federal income taxes as long-term capital gains. Individual
shareholders are not subject to New York State or New York City income
taxes on interest dividends attributable to municipal obligations
originating in New York State or obligations of certain United States
territories and possessions. Distributions of capital gains and dividends
attributable to market discount on portfolio securities are subject to New
York State and New York City income tax.
9. Other Fund Services
* Thornburg Funds telephone representatives: Monday through Friday from
7:30 a.m. to 4:30 p.m. Mountain Time, at 1-800-847-0200.
* Thornburg Funds Audio Response System: 24 hours a day, 7 days a week.
Call 1-800-847-0200.
* The Automatic Investment Plan: transfer as little as $100 from your bank
account on a weekly, monthly or quarterly basis.
* Exchange Class A shares of any other Thornburg Fund for Class A
shares of the Fund without paying any additional sales charge.
* Website: Contact Thornburg on the Internet at www.Thornburg.com
Contact your financial advisor or the Fund for more information on these and
other services available to you.
Please call 1-800-847 or your financial adviser for an application to
purchase shares of the Fund. A copy of the Fund's prospectus will be sent
to you with the application.
<LOGO>
Thornburg Funds
Investing With Integrity
Thornburg Securities Corporation, Distributor
119 East Marcy Street, Santa Fe, New Mexico 87501
800-847-0200
www.thornburg.com e-mail: [email protected]
<PAGE>
THORNBURG Rule 497(k)(1)(ii)
VALUE FUND
THORNBURG
GLOBAL VALUE FUND
<logo>
Fund Profile
February ___, 1999
This Profile summarizes key information about the Funds that is included in
the Funds' prospectus. The Funds' prospectus includes additional
information about the Funds, including a more detailed description of the
risks associated with investing in the Funds that you may want to consider
before you invest. You may obtain the prospectus and other information
about the Funds at no cost by calling 800-847-0200.
<PAGE>
1. Investment Goal
Each of the Funds is an equity mutual fund seeking long-term capital
appreciation. As a secondary consideration, each Fund also seeks some
current income.
2. Principal Investment Strategies of the Funds
Thornburg Value Fund seeks its primary objective of capital appreciation by
investing mainly in domestic equity securities selected on a value basis
using fundamental research and valuation methods. Thornburg Global Value
Fund has the same primary objective and uses a similar strategy, but
invests throughout the world and normally will invest more than one-half of
its assets outside the United States. As a secondary investment
consideration, each of the Funds seeks to realize some current income
through selection of dividend paying equity securities, and through the
purchase of some preferred stocks and domestic and foreign debt securities.
Value, for purposes of each Fund's selection criteria, relates both to
current and to projected measures. Among the specific factors considered
by TMC in identifying undervalued securities for inclusion in a Fund are:
* price/earnings ratios * undervalued assets
* price/sales ration * price to book value
* relative earnings growth potential * price/cash flow
* industry leadership * dividend yield
* dividend growth potential * dividend history
* franchise value * security and consistency
of revenue stream
Although each Fund's principal focus is the purchase of value stocks based
upon the criteria shown above, each Fund's portfolio may include stocks and
other securities which, in the investment adviser's opinion, provide value
in a broader or different context. Other contexts could include growing
companies with consistent results when they are selling below historic
norms, and companies whose sales growth reflects changes in social,
economic and technological trends. These issues are purchased when
considered temporarily out of favor. Each Fund also may invest in special
situations which, in the investment adviser's opinion, are priced
attractively.
Additional information about the Value Fund's investments is available in
the Fund's annual and semi-annual reports to shareholders. Additionally, in
the Value Fund's prospectus you will find a discussion of the market
conditions and investment strategies that significantly affected Value
Fund's performance during its last fiscal year. You may obtain Value
Fund's most recent annual and semi-annual reports and prospectus at no cost
by calling 800-847-0200. This information and discussion is not available
currently for Global Value Fund, which commenced investment operations on
May 26, 1998.
<PAGE>
3. Principal Risks
The value of each Fund's investments varies from day to day, generally
reflecting changes in market conditions, political and economic news,
interest rates, dividends and specific corporate developments. The value
of each Fund's investments also could be reduced by defaults in debt
securities owned by the Fund, unsuccessful investment strategies, or risks
affecting foreign securities. Each of the Funds, and in particular the
Global Value Fund, may be subject to the additional risks of foreign
investments, including changes in currency exchange rates which may
adversely affect the Funds' investments, political instability,
confiscation, inability to sell foreign investments, and reduced legal
protections for investments. The loss of money is a risk of investing in
each Fund, and when you sell your shares they may be worth more or less
than what you paid for them.
An investment in either of the Funds is not a deposit in any bank and is
not insured or guaranteed by the Federal Deposit Insurance Corporation or
any other governmental agency.
Prospective investors should consider how the Funds' investment returns may
vary. Either Fund's share value may go down in some periods. The
following bar chart shows how Value Fund's annual total returns for Class A
shares have been different in each full calendar year since it began
operations. The accompanying average annual total return figures compare
the performance of Class A and Class C shares to the Standard & Poor's
Composite Index of 500 Stocks. This information gives some indication of
the risks of investing in Value Fund by showing changes in performance from
year to year and by showing how the Fund's average annual total returns for
the periods shown compare with a broad measure of market performance.
___________________________________________________________________________
Value Fund Annual Total Returns - Class A Shares <presented as a bar
- ------------------------------------------------ graph in the profile>
40%
The year-to-date return for the quarter 37.82%
ending September 30, 1998 was 1.90%. During ------ 33.70%
the two-year period shown in the bar chart, 30% ------
the highest return for a quarter was 15.05%
(quarter ending 9/30/97) and lowest return 20%
for a quarter was 0.03% (quarter ending <bar> <bar>
6/30/98). The Value Fund commenced investment 10%
operations on October 1, 1995.
0% ______ ______
1996 1997
___________________________________________________________________________
<PAGE>
___________________________________________________________________________
Value Fund Average Annual Total Return - Class A and C Shares
- -------------------------------------------------------------
1 Year Ended December 31, 1997 From Inception (10/1/95)
Thornburg Value
Fund Class A 27.72% 28.28%
Thornburg Value
Fund Class C 32.63% 29.95%
S&P 500 33.36% 28.13%
___________________________________________________________________________
No information is given for Global Value Fund, which commenced operations
May 26, 1998. Sales charges for Class A shares are not reflected in the
returns shown in the bar chart, and the returns would be less if the sales
charges were taken into account. The figures shown in the average annual
total return table do reflect maximum sales charges imposed, assuming a
redemption at the end of the period shown. Value Fund's performance in the
past is not necessarily an indication of how the Fund will perform in the
future.
4. Fees and Expenses of the Funds
The following tables describe the fees and expenses that you may pay if you
buy and hold shares of the Funds.
Shareholders Fees (fees paid directly from your investment)
Value Fund and Global Value Fund
Class A Class C
------- -------
Maximum Sales Charges (Load) imposed on
purchases (as a percentage of offering
price) 4.50% None
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of redemption
proceeds or original offering price) 1.00%* 1.00%**
* Imposed only on redemption of purchases of $1 million or more
or redemptions by certain employee benefit plans and charitable
organizations, if redemption occurs within one year of purchase
** Imposed only on redemptions within one year of purchase
Annual Fund Operating Expenses (expenses are deducted from Fund assets)
- ------------------------------
Value Fund Class A Class C
------- -------
Management Fee .88% .88%
Distributions and Service (12b-1) Fees .25% 1.00%
Other Expenses .40% .50%
----- -----
Total Annual Fund Operating Expenses 1.53% 2.38%
Expenses reflect rounding. Expenses for Value Fund are restated to reflect
current expenses.
<PAGE>
Example: This Example is intended to help you compare the cost of investing
in Value Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and redeem all of your shares at the end of these periods. The
Example also assumes that your investment has a 5% return each year and that
the Fund's operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $600 $910 $1,250 $2,190
Class C Shares $340 $740 $1,270 $2,720
You would pay the following expenses if you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A Shares $600 $910 $1,250 $2,190
Class C Shares $240 $740 $1,270 $2,720
Annual Fund Operating Expenses (expenses are deducted from Fund assets)
- ------------------------------
Global Value Fund Class A Class C
------- -------
Management Fee .88% .88%
Distributions and Service (12b-1) Fees .25% 1.00%
Other Expenses 1.12% 4.87%
----- -----
Total Annual Fund Operating Expenses 2.25% 6.75%
Expenses reflect rounding. Other expenses in the table are estimated for
the current fiscal year, before expense reimbursements. Thornburg
Management Company, Inc. (TMC) intends to reimburse a portion of the Fund's
other expenses so that the Fund's actual other expenses are .50% for Class
A and Class C shares, and so that actual total Fund operating expenses are
1.63% and 2.38% for Class A and Class C shares, respectively. TMC's
reimbursement of expenses may be terminated at any time.
Example: This Example is intended to help you compare the cost of investing
in Global Value Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund for the time periods
indicated and redeem all of your shares at the end of these periods. The
Example also assumes that your investment has a 5% return each year, that
the Fund's operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years
------ -------
Class A Shares $670 $1,130
Class C Shares $692 $2,040
You would pay the following expenses if you did not redeem your shares:
Class A Shares $670 $1,030
Class C Shares $592 $2,040
<PAGE>
5. Investment Adviser and Portfolio Managers
The Funds' investment adviser is Thornburg Management Company, Inc.
(TMC). William Fries, a Managing Director of TMC, has been the portfolio
manager of Value Fund and Global Value Fund since Value Fund commenced
operations on October 1, 1995, and since Global Value Fund commenced
operations in 1998. Before joining TMC in May 1995, Mr. Fries managed
equity mutual funds for 16 years with another mutual fund management
company. Mr. Fries is assisted by other employees of TMC.
6. Purchase of Fund Shares
Each Fund offers Class A and Class C shares. Class A shares are sold
subject to a sales charge deducted at the time you purchase your shares:
Sales Charge
as a percentage as a percentage
Purchase Amount of Offering Price of Net Asset Value
- --------------- ----------------- -------------------
[S] [C] [C]
Less than $50,000 4.50% 4.71%
$50,000 to 99,999.99 4.00% 4.17%
$100,000 to 249,999.99 3.50% 3.63%
$250,000 to 499,999.99 3.00% 3.09%
$500,000 to 999,999.99 2.00% 2.04%
$1,000,000 and up 0.00% 0.00%
No sales charge will be payable at the time of purchase on investments of
$1 million or more made by a purchaser. A contingent deferred sales
charge will be imposed, however, on any portion of such a purchase which
is redeemed within one year.
Certain shareholders may buy shares at a reduced or no sales charge:
shareholders who sign a letter of intent to purchase more than $50,000 over
13 months; shareholders who purchase shares within 24 months of redeeming
Class A shares; customers of trust companies or trust departments or
customers of fee for service financial advisors; shareholders investing
through a dealer's wrap program; shareholders investing dividends of other
Thornburg Funds; shareholders whose orders are placed through certain
brokers maintaining omnibus accounts with the Funds under specified
circumstances; also directors and employees of TMC or affiliated companies,
of NASD member firms or of certain financial planning firms; employee
benefit plans and charitable organizations; other purchases involving no
sales expense, in the trustees' sole discretion.
Class C shares are sold at net asset value, but are subject to higher annual
expenses and a 1% contingent deferred sales charge if redeemed within one
year of purchase.
<PAGE>
The minimum purchase to open an account is $5,000, but retirement accounts
may be opened with $2,000 and automatic investment plans may be opened with
$100. Minimum additional purchase for any account is $100. Purchases may
be made by mail, through your financial advisor or by telephone.
7. Redeeming Fund Shares
You can withdraw money from your Fund account on any Fund business day by
redeeming some or all of your shares (selling them back to your Fund either
directly or through your financial advisor). Your shares will be purchased
by the Fund at the next share price calculated after your order is received
in proper form. If your purchase was subject to a contingent deferred sales
charge within one year of purchase, this will be deducted. You may redeem
Fund shares by mail, through your financial advisor or by telephone if you
have previously signed up for the telephone redemption feature.
8. Distributions
Each Fund distributes substantially all of its net income and realized
capital gains to shareholders each year. Dividends are normally distributed
each quarter and capital gains are distributed at the end of each calendar
year. Distributions are reinvested automatically in additional shares
unless you elect to receive distributions in cash. Your distributions are
taxable whether you take them in cash or reinvest them. For federal income
tax purposes, income and short-term capital gain distributions are taxed as
ordinary income, and any long-term capital gain distributions are taxed as
long-term capital gains. Redemption of Fund shares is a taxable event, and
you will have a gain or loss on redemption to the extent the value of the
shares differed from your adjusted tax basis in them.
9. Other Fund Services
* Thornburg Funds telephone representatives: Monday through Friday from
7:30 a.m. to 4:30 p.m. Mountain Time, at 1-800-847-0200.
* Thornburg Funds Audio Response System: 24 hours a day, 7 days a week.
Call 1-800-847-0200.
* The Automatic Investment Plan: transfer as little as $100 from your bank
account on a weekly, monthly or quarterly basis.
* Website: Contact Thornburg on the Internet at www.Thornburg.com
* You may exchange Class A shares of any other Thornburg Fund for Class A
shares of Value Fund or Global Value Fund without paying any additional
sales charge.
* You may automatically invest your dividends from Value Fund or Global
Value Fund into any other Thornburg Fund.
Contact your financial advisor or the Funds for more information on these
and other services available to you.
<PAGE>
Please call 1-800-847 or your financial adviser for
an application to purchase shares of Value or Global Value Fund.
A copy of the prospectus for the Funds will be sent to you with the
application.
<LOGO>
Thornburg Funds
Investing With Integrity
Thornburg Securities Corporation, Distributor
119 East Marcy Street, Santa Fe, New Mexico 87501
800-847-0200
www.thornburg.com e-mail: [email protected]
