The flexibility to seek value broadly
Thornburg Value Fund is a focused portfolio of mostly U.S. companies,
selected via a fundamentally driven, valuation-sensitive process. The fund is
centered on providing attractive, risk-adjusted returns with mitigated volatility
versus the benchmark S&P 500 Index.
"We are fundamental,
bottom-up stock pickers. We
have the flexibility to seek
value broadly, employing our
basket structure to ensure
diversification. We want each
holding to matter to fund
performance; we therefore
keep the portfolio focused
amongst just 35–65 positions.
Since 1995, we have
worked to invest in promising
companies selling at a discount
to their intrinsic values.
We believe this approach to
be a durable and common-sense
Importantly, it has worked
over the long term for our
— Connor Browne
Like other Thornburg strategies, Value Fund is flexible
in its approach. We have the ability to invest anywhere
along the capitalization spectrum, within or outside
the U.S. Our flexibility allows us to go wherever we
Seeking Promising Companies at a Discount
Thornburg Value Fund has never been a deep-value
portfolio seeking only beaten-up, tired businesses
trading at low multiples. Rather, we believe that future
price appreciation can belong to businesses with a
bright future, businesses with promise.
We employ more flexibility than other value strategies in
that the companies we consider tend to have attractive
growth prospects. We don’t limit ourselves to a
traditional, one-dimensional view of value.
Diversification via a Three-Basket Approach
We focus on constructing a core portfolio with potential
to outperform its benchmark over time. We diversify the
portfolio via several means, one of which is 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 valuations.
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 rate.
A Regular, Repeatable Process
We have selected stocks via a bottom-up, collaborative, repeatable process since the fund’s
inception over 20 years ago.
Significant Tax-Loss Carryforwards
The fund has accumulated tax-loss carryforwards equivalent to approximately 40% of total assets; the fund should be a particularly tax-efficient investment vehicle until the carryforwards are exhausted.
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.
Funds invested in a limited number of holdings may expose an investor to greater volatility.
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.