THORNBURG
VALUE FUND
AND
THORNBURG
GLOBAL VALUE FUND
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Fund Profile
June ___, 1998
This Profile summarizes key information about the Thornburg Value Fund and
Thornburg Global Value Fund 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.
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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 traditional and additional 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 the purchase of some preferred stocks and domestic
and foreign debt securities. Each of the Funds expects a portfolio yield,
before Fund expenses, which is higher than the dividend yield on the
Standard & Poor's Composite Index of 500 Stocks.
Although each Fund's principal focus is traditional value stocks, 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
growth in products and services reflect social, economic and technological
trends but which are currently out of favor. Each Fund also may invest in
special situations which, in the investment adviser's opinion, are priced
attractively.
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
Each Fund may invest in the stock of issuers of any size, including stocks
of small, unseasoned issuers.
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.
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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
increase or decrease each year, and 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. 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.
Value Fund Annual Total Returns - Class A Shares
40%
37.82% 33.70%
30%
20%
[bars]
10%
0%
-10%
1996 1997
The year-to-date return for the quarter ending March 31, 1998 was
17.38%. During the two-year period shown in the bar chart, the highest
return for a quarter was 15.05%. (quarter ending 9/30/97)and lowest return
for a quarter was -0.03% (quarter ending 3/31/97). The Value Fund
commenced investment operations on October 1, 1995.
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Value Fund Average Annual Total Return-Class A and Class C Shares
One Year Ended One Year Ended
December 31, 1997 December 31, 1997
Value Fund Class A 27.72% 28.28%
Value Fund Class C 32.63% 29.95%
S & P 500 33.36% _____%
No figures are available for Global Value Fund because it commenced
operations on May 26, 1998.
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 purchase
price) 4.50% None
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of redemption
proceeds or original purchase 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. Long-term Class C shareholders may pay more than the
economic equivalent of the maximum sales charge permitted by regulations of
the National Association of Securities Dealers, Inc.
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:
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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. Long-term Class C
shareholders may pay more than the economic equivalent of the maximum
sales charge permitted by regulations of the National Association of
Securities Dealers, Inc.
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 and that TMC's reimbursement
of other expenses continues as described in the footnote to the table above.
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 $610 $940 $1,300 $2,300
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 $610 $940 $1,300 $2,300
Class C Shares $240 $740 $1,270 $2,720
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.
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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:
Dealer Concession
Sales Charge or Agency Commission
as a percentage as a percentage as a percentage
Purchase Amount of Offering Price of Net Asset Value of Offering Price
- --------------- ----------------- ------------------ -----------------
[S] [C] [C] [C]
Less than $50,000 4.50% 4.71% 4.00%
$50,000 to 99,999.99 4.00% 4.17% 3.50%
$100,000 to 249,999.99 3.50% 3.63% 3.00%
$250,000 to 499,999.99 3.00% 3.09% 2.50%
$500,000 to 999,999.99 2.00% 2.04% 1.50%
$1,000,000 and over 0.00% 0.00% <FN*>
* 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.
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.
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7. Redeeming Fund Shares
You can withdraw money from your Fund account at any time 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 (NAV) 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.
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9. Other Fund Services
* Thornburg Funds telephone representatives are available 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 is available 24 hours a day, 7 days
a week. Call 1-800-847-0200.
* The Automatic Investment Plan lets you transfer as little as $100 from
your bank account on a weekly, monthly or quarterly basis.
* 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 Fund for more information on these and
other services available to you.
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You may use the following application to purchase shares of Value Fund or
Global Value Fund. A copy of the prospectus for the Funds will be sent to
you with your purchase confirmation. If you would like to review the Funds'
prospectus before making a decision about investing in either of the Funds,
please request the prospectus from your financial advisor or telephone the
Thornburg Funds at 1-800-847-0200.
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[insert application]
<PAGE><OUTSIDE BACK COVER>
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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]
