A Global Search for Growing Income & Price Appreciation

Thornburg Investment Income Builder is a globally oriented portfolio whose aim is to provide an attractive and growing income stream, with capital appreciation, over time. A dynamic blend of global dividend-paying stocks and bonds of virtually any type, Income Builder is broadly flexible in pursuit of its objectives.

Working Photo "The portfolio’s goals are to provide interesting current income, and over the long term, to grow that income on a per-share basis. The direct consequence of success in those two is likely to be capital appreciation. Because global dividend-paying stocks are so well suited to the above goals, our portfolio has generally been, and is likely to continue to be, dominated by that asset class. Fixed income and other income-generating asset classes are also important to the portfolio. If we’re able to find companies that show both an ability and willingness to pay shareholders a significant portion of earnings, and those companies are in a position to create value over time through growth, we may find continued success."

— Brian McMahon

We Go Where The Income Is

Global Diversification Can Improve Yield
U.S. corporations have historically reinvested capital in businesses rather than returning it to shareholders in the form of dividends. But in overseas markets with stronger dividend-paying cultures, this tendency is reversed.

Yields are often higher in Canada, Europe, Australia, Latin America, even China. See the index data in the chart below.

Beyond Utilities
Investors sometimes think of high dividend yields as limited to the utilities or telecom sectors, but we search for promising dividend payers in a range of sectors and geographies.

We often see interesting income levels in European telecoms (5.0%), and in U.K. energy (7.0%) and Australian financials (5.9%), for example.*

*Average dividend yield estimates per MSCI country and regional indices. Europe excludes the United Kingdom. Sourced via Bloomberg, as of 9/30/16.

Ability and Willingness
We search the globe for companies with the ability and willingness to distribute earnings to shareholders.

2017 Estimated Yield, MSCI Country Indices

2014 Estimated Yield MSCI Country Indices

A Supporting Role: Bonds of Any Type

Fixed income plays a supporting role in the portfolio, aiding in income production and potentially muting volatility over time. And in the Income Builder portfolio, we don’t limit ourselves to bonds of a particular type or credit quality in the search for the best risk/reward trade-off.

Beyond Current Yield

Investors tend to focus on current yield, or current income divided by current price. While useful, current yield is only a snapshot. It can be helpful to look beyond it — to yield on cost, which is annual income divided by the cost of an initial investment — reflecting an investor’s yield on their original purchase.

If one were to invest a hypothetical $100,000 in a security with a current yield of 5% at purchase, and income grew by 50% over time, the yield on cost of the initial investment would have grown from 5% to 7.5%.

The Importance of Per-Share Cash Flow

With both declining price and declining income, an investor can experience a current yield that remains level. Similarly, with a rising price and flat income, current yield would decline. So as investors choose which vehicles to use for income, it’s important that they understand per-share cash flow (the actual dollar amount of income received per share) as a true measure of income — along with current yield and yield on cost.

Important Information

The Fund is offered solely to non-U.S. investors under the terms and conditions of the Fund’s current Prospectus. A copy of the full Prospectus and KIID for the Fund may be obtained by contacting the local Paying Agent through the Fund’s Transfer Agent, Brown Brothers Harriman Fund Administrator Services (Ireland) Limited or in the forms and literature section of this website. The Prospectus and KIID contain important information about the Fund and should be read carefully before investing.

Investments carry risks, including possible loss of principal. Additional risks may be associated with investments 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 insured, nor are they bank deposits or guaranteed by a bank or any other entity.

This material constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (the “Act”) and the handbook of rules and guidance issued from time to time by the FCA (the "FCA Rules"). This material is for information purposes only and does not constitute an offer to subscribe for or purchase any financial instrument. Thornburg Investment Management Ltd. ("TIM Ltd.") neither provides investment advice to, nor receives and transmits orders from, persons to whom this material is communicated nor does it carry on any other activities with or for such persons that constitute "MiFID or equivalent third country business" for the purposes of the FCA Rules. All information provided is not warranted as to completeness or accuracy and is subject to change without notice.

The Fund is a sub-fund of Thornburg Global Investment plc, an open-ended umbrella type investment company with segregated liability between sub-funds, authorised by the Central Bank of Ireland (CBI) on 25 November 2011 as an investment company pursuant to the UCITS Regulations. Authorisation of the Company by the CBI is not an endorsement or guarantee of the Company by the CBI nor is the CBI responsible for the contents of the Prospectus or KIID.

Thornburg Investment Income Builder Fund's Blended Index is composed of 25% Bloomberg Barclays U.S. Aggregate Bond Index and 75% MSCI World Index, rebalanced monthly.

Administrator: Brown Brothers Harriman Fund Administration Services (Ireland) Limited, Ireland, BBH.Dublin.TA@bbh.com +353.1.603.6490

Please see our glossary for a definition of terms.