munications, transportation and economic infrastructures are less developed, and developing countries ordinarily have less established legal, political, business and social frameworks. At times
the prices of equity securities or debt obligations of a developing country issuer may be extremely volatile. An issuer domiciled in a developed country may be similarly affected by these developing country risks to the extent that the issuer
conducts a significant percentage of its business in developing countries.
Smaller Company Risk
Investments in smaller companies may involve
additional risks because of limited product lines, limited access to markets and financial resources, greater vulnerability to competition and changes in markets, lack of management depth, increased volatility in share price, and possible
difficulties in valuing or selling the investments.
Credit Risk
If debt obligations held by the Fund are downgraded by ratings agencies or go into
default, or if management action, legislation or other government action reduces the ability of issuers to pay principal and interest when due, the value of those debt obligations may decline and the Funds share value and any dividends paid by
the Fund may be reduced. Because the ability of an issuer of a lower-rated or unrated debt obligation (including particularly junk or high yield bonds) to pay principal and interest when due is typically less certain than for
an issuer of a higher-rated debt obligation, lower-rated and unrated debt obligations are generally more vulnerable than higher-rated debt obligations to default, to ratings downgrades, and to liquidity risk.
Interest Rate Risk
When interest rates increase, the value of the Funds investments in debt obligations may decline and the Funds share value
may be reduced. This effect is typically more pronounced for intermediate and longer-term debt obligations. Decreases in market interest rates may result in prepayments of debt obligations the Fund acquires, requiring the Fund to reinvest at lower
interest rates.
Liquidity Risk
Due to a lack of demand in the marketplace or other factors, the Fund may not be able to sell some or all of the
investments promptly, or may only be able to sell investments at less than desired prices. This risk may be more pronounced for the Funds investments in developing countries.
Real Estate Risk
The Funds investments in real estate investment trusts (REITs) are subject to risks affecting real estate investments
generally (including market conditions, competition, property obsolescence, changes in interest rates and casualty to real estate), as well as risks specifically affecting REITs (the quality and skill of REIT management and the internal expenses of
the REIT).
Additional information about Fund investments, investment strategies and risks of investing in the Fund appears beginning on page 38 of the Prospectus.
Past Performance of the Fund
The following information
provides some indication of the risks of investing in Global Opportunities Fund by showing how the Funds investment results vary from year to year. The bar chart shows how the annual total returns for Class R3 shares of the Fund vary in each
full year shown. The average annual total return figures
compare Class R3, Class R4 and Class R5 share performance to the Morgan Stanley Capital International (MSCI) All Country
(AC) World Index, which represents a broad measure of both domestic and foreign equity market performance. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. The performance
information shown below is as of the calendar year ended December 31, 2013. Updated performance information may be obtained on the Thornburg website at www.thornburg.com or by calling 1-800-847-0200.
Annual Total Returns Class R3 Shares
Highest quarterly results for time period shown: 36.02%
(quarter ended 6-30-09).
Lowest quarterly results for time period shown:
-21.59%
(quarter ended 9-30-11).
Average Annual Total Returns
(periods ended
12-31-13)
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R3 Shares
|
|
1 Year
|
|
|
5 Years
|
|
|
Since
Inception
(2-1-08)
|
|
Return Before Taxes
|
|
|
28.07
|
%
|
|
|
19.28
|
%
|
|
|
4.95
|
%
|
|
|
|
|
Return After Taxes on Distributions
|
|
|
27.76
|
%
|
|
|
18.39
|
%
|
|
|
4.05
|
%
|
|
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares
|
|
|
15.88
|
%
|
|
|
15.17
|
%
|
|
|
3.33
|
%
|
|
|
|
|
MSCI AC World Index
(reflects no
deduction for fees, expenses, or taxes)
|
|
|
22.80
|
%
|
|
|
14.92
|
%
|
|
|
4.01
|
%
|
Class R4 Shares
|
|
1 Year
|
|
|
5 Years
|
|
|
Since
Inception
(2-1-08)
|
|
Return Before Taxes
|
|
|
28.21
|
%
|
|
|
19.41
|
%
|
|
|
5.04
|
%
|
|
|
|
|
MSCI AC World Index
(reflects no deduction for fees, expenses, or taxes)
|
|
|
22.80
|
%
|
|
|
14.92
|
%
|
|
|
4.01
|
%
|
Class R5 Shares
|
|
1 Year
|
|
|
5 Years
|
|
|
Since
Inception
(2-1-08)
|
|
Return Before Taxes
|
|
|
28.73
|
%
|
|
|
19.90
|
%
|
|
|
5.50
|
%
|
|
|
|
|
MSCI AC World Index
(reflects no deduction for fees, expenses, or taxes)
|
|
|
22.80
|
%
|
|
|
14.92
|
%
|
|
|
4.01
|
%
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect state or
local income taxes. Actual after-tax returns depend on an investors own tax situation and may differ from the returns shown, and after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.