THORNBURG Rule 497(k)(1)(iii)(A)
VALUE FUND
THORNBURG
GLOBAL VALUE FUND
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Fund Profile
February 18, 2000
This Profile summarizes key information about the Funds that are 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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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.
Principal Investment Strategies of the Funds
Value Fund expects to invest primarily in domestic equity securities
selected on a value basis. However, the Fund may own a variety of
securities, including domestic debt securities and foreign equity and debt
securities which, in the opinion of the Fund's investment adviser, offer
prospects for meeting the Fund's investment goals.
Global Value Fund expects to invest throughout the world in a diversified
portfolio consisting primarily of equity securities selected on a value
basis. The Fund normally will invest more than one-half of its assets in
foreign securities, and may own a variety of domestic and foreign equity
and debt securities which, in the opinion of the Fund's investment adviser,
offer prospects for meeting the Fund's investment goals. The Fund may
invest in developing countries.
Each Fund's principal focus is traditional, basic value stocks, and each
Fund ordinarily invests in stocks that may be depressed or reflect
unfavorable market perceptions of company or industry fundamentals.
However, 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 ordinarily include consistent growth
companies with consistent results when they are selling below historic
norms, and emerging franchise companies whose sales growth reflects changes
in social, economic and technological trends but are temporarily out of
favor.
Additional information about each Fund's investments is available in the
Fund's annual and semi-annual reports to shareholders. Additionally, in
each Fund's annual report you will find a discussion of the market
conditions and investment strategies that significantly affected each
Fund's performance during its last fiscal year. You may obtain the Fund's
most recent annual and semi-annual reports and the Funds' prospectus at no
cost by calling 800-847-0200.
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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 can be reduced by unsuccessful investment
strategies and risks affecting foreign securities. Principal foreign
investment risks are changes in currency exchange rates which may adversely
affect a Fund's investments, economic and political instability,
confiscation, inability to sell foreign investments, and reduced legal
protections for investments. These risks may be more pronounced for
investments in developing countries. Debt securities owned by each Fund
may decrease in value because of interest rate increases, defaults, or
downgrades by rating agencies. The loss of money is a risk of investing in
a Fund, and when you sell your shares they may be worth less than what you
paid for them.
An investment in either Fund is not a deposit in any bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency.
Past Performance of Value Fund
- --------------------------------
The following information provides some indication of the risks of investing
in Value Fund by showing how Value Fund's investment results vary from year
to year. The bar chart shows how the annual total returns for Class A
shares have been different in each full year shown, and the average annual
total return figures compare Class A share performance to the Standard &
Poor's Composite Index of 500 Stocks, a broad measure of market performance.
Performance in the past is not necessarily an indication of how the Fund
will perform in the future. No performance figures are available for Class
B shares because the offering of Class B shares had not commenced as of the
date of this Fund Profile.
<The following are presented as bar graphs in the Prospectus>
Value Fund Annual Total Returns for Class A Shares
- --------------------------------------------------
40%
37.82 37.44%
30% 33.70
20% 22.25
10%
0%
1996 1997 1998 1999
Highest quarterly results for time period shown: 21.63% (quarter ended
12/31/99).
Lowest quarterly results for time period shown: (13.55)% (quarter ended
9/30/98).
This sales charge for Class A shares is not reflected in the returns shown
above in the bar chart, and the returns would be less if the charge was
taken into account.
Value Fund Average Annual Total Return - Class A and C Shares
- -------------------------------------------------------------
(periods ended 12/31/99)
From Inception
1 Year (10/2/95)
------ --------------
Thornburg Value
Fund Class A 31.25% 28.91%
Thornburg Value
Fund Class C 36.39% 29.30%
S&P 500 21.05% 25.60%
Fees and Expenses of Value Fund
- ---------------------------------
The following tables describe the fees and expenses that you may pay if you
buy and hold shares of Value Fund.
Shareholder Fees (Fees Paid Directly From Your Investment)
- --------------------------------------------------------
Class A Class B Class C
------- ------- -------
Maximum Sales Charge
(Load) on Purchases (as a
percentage of offering price) 4.50% none none
Maximum Deferred Sales Charge
On Redemptions(Load)
(as a percentage of the
lesser of redemption proceeds
or original offering price) 1.00% * 5.00% 1.00% **
* Imposed only on redemption of purchase 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 That Are Deducted From Fund
Assets)
Value Fund Class A Class B Class C
------- ------- -------
Management Fee .88% .88% .88%
Distributions and Service (12b-1) Fees .25% 1.00% 1.00%
Other Expenses .31% .71% .35%
----- ----- -----
Total Annual Fund Operating Expenses 1.44% 2.59%* 2.23%
*Other expenses for Class B shares are estimated for the current fiscal
year, before expense reimbursements. Thornburg Investment Management, Inc.
intends to reimburse expenses so that actual Class B expenses are 2.50%.
Reimbursement of expenses may be terminated at any time.
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,
dividends and distributions are reinvested, 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 $542 $841 $1,162 $2,074
Class B Shares $765 $1,164 $1,590 $2,960
Class C Shares $329 $706 $1,210 $2,601
You would pay the following expenses if you did not redeem your Class B or
Class C shares:
1 Year 3 Years 5 Years 10 Years
------ ------ ------- -------
Class B Shares $265 $814 $1,309 $2,960
Class C Shares $229 $706 $1,210 $2,601
Past Performance of Global Value Fund
- ------------------------------------
The following information provides some indication of the risks of
investing in the Fund by showing how the Fund's investment results vary
from year to year. The bar chart shows the annual total return for Class A
shares, for the first full calendar year of the Fund's operations. The
average annual total return figures compare Class A and Class C share
performance to the Morgan Stanley Capital International Europe, Australia
and Far East Index, a broad measure of market performance. Performance in
the past is not necessarily an indication of how the Fund will perform in
the future. No performance figures are available for Class B shares
because the offering of Class B shares had not commenced as of the date of
this Fund Profile.
70%
63.39%
50%
30%
10%
0%
'99
Highest quarterly results for time period shown: 34.73% (quarter ended
12-31-99).
Lowest quarterly results for time period shown: 2.45% (quarter ended
9-30-99).
Average Annual Total Returns (periods ending 12-31-99)
One Year Since Inception
-------- ---------------
Class A Shares 56.03% 24.34% (5-28-98)
Class C Shares 61.46% 26.64% (5-28-98)
EAFE 25.26% 17.63%
The sales charge for Class A shares is not reflected in the returns shown in
the bar chart above and returns would be less if the charge was taken into
account.
Fees and Expenses of Global Value Fund
- -------------------------------------
The following tables describe the fees and expenses that you may pay if you
buy and hold shares of Global Value Fund.
Shareholders Fees (Fees Paid Directly From Your Investment)
- -----------------
Class A Class B Class C
------- ------- -------
Maximum Sales Charge (Load)
on Purchases (as a percentage
of offering price) 4.50% none none
Maximum Deferred Sales Charge
(Load) on Redemptions (as a
percentage of the lesser of
redemption proceeds or
original offering price) 1.00% * 5.00% 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 That Are Deducted From Fund
- ----------------------------- Assets)
Global Value Fund Class A Class B Class C
- ----------------- ------- ------- --------
Management Fee .88% .88% .88%
Distributions and Service (12b-1) Fees .25% 1.00% 1.00%
Other Expenses .80% 1.61% 1.75%
----- ----- -----
Total Annual Fund Operating Expenses 1.93% * 3.49% 3.63% *
*Other expenses for Class B shares are estimated for the current fiscal
year, before expense reimbursements. Thornburg Investment Management, Inc.
intends to reimburse expenses so that actual Class A expenses are 1.63%,
actual Class B expenses are 2.50%, and actual Class C expenses are 2.38%.
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, dividends and distributions are reinvested, 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 $ 590 $ 989 $ 1,413 $ 2,595
Class B Shares $ 857 $ 1,437 $ 2,040 $ 3,828
Class C Shares $ 472 $ 1,132 $ 1,914 $ 3,965
You would pay the following expenses if you did not redeem your Class C
shares:
1 Year 3 Years 5 Years 10 Years
------ ------- -------- --------
Class B Shares $ 357 $1,087 $ 1,841 $ 3,828
Class C Shares $ 372 $1,132 $ 1,914 $ 3,965
Investment Adviser and Portfolio Managers
The Funds' investment adviser is Thornburg Investment Management, Inc.
(Thornburg). William V. Fries, a Managing Director of Thornburg, 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 Thornburg 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 Thornburg.
Purchase of Fund Shares
Each Fund offers multiple classes of shares. Purchases of Class A, Class
B, and Class C shares are described below.
Class A shares
Class A shares are sold subject to a sales charge deducted at the time you
purchase your shares:
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 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 broker dealer's wrap program; shareholders investing dividends of
other Thornburg Funds; shareholders whose orders are placed through certain
broker dealers maintaining omnibus accounts with the Funds under specified
circumstances; also directors and employees of Thornburg 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 B Shares
Class B shares are sold at net asset value, but are subject to higher annual
expenses. Class B shares are subject to a contingent deferred sales charge
(CDSC) if the shares are redeemed within seven years of purchase. The CDSC
decreases over time as follows:
One Two Three Four Five Six Seven Eight or More
Year Years Years Years Years Years Years Years
- ---- ------ ------ ------ ------ ------ ------ --------------
5.00% 4.25% 3.50% 2.75% 2.00% 1.25% .50% none
Class B shares convert to Class A shares at the end of eight years, and are
thereafter subject to the lower expenses applicable to Class A shares.
Class C Shares
Class C shares are sold at net asset value, but are subject to higher annual
expenses. Class C shares are subject to a 1% contingent deferred sales
charge if redeemed within one year of purchase.
The minimum purchase to open and account is $5,000 for Class A, Class B and
Class C shares, but retirement accounts may be opened with $2,000. Minimum
additional purchase for any account is $100. Minimum account size is
$1,000, and accounts falling below that amount may be subject to mandatory
redemption. Purchases may be made by mail, through your financial advisor
or by telephone.
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 redeemed
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, 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.
Distributions and Taxes
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. State income tax
treatment of shareholder distributions may vary from federal treatment of
distributions.
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.
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Please call 1-800-847-0200 or your financial advisor 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.
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Thornburg Securities Corporation, Distributor
119 East Marcy Street, Santa Fe, New Mexico 87501
800-847-0200
www.thornburg.com e-mail: [email protected]
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