Around the World in Search of Value
Thornburg International Value Fund is a focused, diversified portfolio of leading,
mostly large-cap international companies, selected via a fundamentally driven,
bottom-up, valuation-sensitive process. The fund is centered on providing
attractive risk-adjusted returns with mitigated volatility versus its benchmarks.
"Our core stock selection
philosophy centers on building
a focused but diversified
portfolio of international
companies. We like to find
industry leaders when they
are out of favor, offering value
in the context of long-term
prospects. The portfolio will
be invested primarily in the
developed markets of Europe
and the Asia Pacific region but
does include some emerging market
holdings. We believe
three types of stocks (basic
value, consistent earners, and
emerging franchises) provides
the opportunity for our
portfolio to produce positive
total returns over time. Stock
selection is a key element
in achieving our investment
— Lei Wang, and
A Focus on Risk-Adjusted Returns
We focus on constructing a core portfolio with
potential to outperform benchmarks over time — with
lower volatility. One way we mitigate volatility is via
Thornburg’s three-basket diversification construct:
Basic value companies are, in our opinion, financially
sound, well-established businesses selling at low
valuations relative to net assets or earnings power.
Consistent earners normally exhibit steady earnings
growth, cash-flow characteristics, and/or dividend
growth. These companies may have above-average
profitability measures, and may sell at above-average
Emerging franchises are often in the process of
establishing a leading position in a product, service,
or market, or have the potential to grow at an above-average
A Broad, Nuanced View of Valuation
Some value managers who don’t diversify across a
basket structure may have a narrow view of valuation,
with a single set of metrics or constraints by which they
evaluate stocks. Our view of valuation is flexible and
varies across basket structures. It is a broader, more
nuanced, less formulaic take.
A Consistent, Repeatable Process
We have selected stocks via the same bottom-up,
collaborative, fundamentally driven, repeatable process
since the fund’s inception more than 15 years ago.
Seeking Promising, Quality Companies at a Discount
We look for promising, quality companies — industry leaders with modest financial risk and
demonstrated management competence — trading at a discount to their intrinsic value.
A Focus on Economic Exposure, not Country of Domicile
We generally focus on a company’s economic exposure (the countries or markets from
which it derives most revenues) not its country of domicile. Of the top 10 holdings, most
operate in a number of countries worldwide, with a significant share of sales and earnings
from outside the country of domicile.
Emerging Markets Exposure
The portfolio has historically had exposure to emerging markets — either through firms
domiciled in emerging markets or through firms that derive a large portion of revenues
from them. The inclusion of emerging-markets holdings, while they are often more volatile,
has benefitted the fund over the years.
Benchmark Aware, Not Benchmark Driven
While we respect the necessary role a benchmark plays in assessing management skill,
we don’t use benchmarks as starting points in constructing the portfolio. We focus on
individual security selection and managing risk.
Investments carry risks, including possible loss of principal. Additional risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in small- and mid-capitalization companies may increase the risk of greater price fluctuations. Investments in the Fund are not FDIC insured, nor are they bank deposits or guaranteed by a bank or any other entity.
The performance of any index is not indicative of the performance of any particular investment. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. Investors may not make direct investments into any index.
Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses.
Class R shares are limited to retirement platforms only.
Class I shares may not be available to all investors. Minimum investments for the I share class may be higher than those for other classes.
There is no guarantee that the Fund will meet its investment objectives.
Please see our glossary for a definition of terms.
Thornburg mutual funds are distributed by Thornburg Securities Corporation.
Thornburg Investment Management, Inc. mutual funds are sold through investment professionals including investment advisors, brokerage firms, bank trust departments, trust companies and certain other financial intermediaries. Thornburg Securities Corporation (TSC) does not act as broker of record for investors.