ing the specific issuer of the security or obligation, even if the overall industry or economy is unaffected. These
developments may include a variety of factors, including but not limited to management issues or other corporate disruption, a decline in revenues or profitability, an increase in costs, or an adverse effect on the issuers competitive
position.
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.
Foreign Investment Risk
Investments in securities of foreign issuers may involve risks including adverse fluctuations in currency exchange rates,
political instability, confiscations, taxes or restrictions on currency exchange, difficulty in selling foreign investments, and reduced legal protection. These risks may be more pronounced for investments in developing countries.
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.
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 Value 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 have been different in each full year shown. The average annual total return figures compare Class R3, Class R4 and Class R5 share performance to the Standard & Poors 500
Composite Index, a broad measure of 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 Totals Returns Class R3 Shares
Highest quarterly results for time period shown: 30.07%
(quarter ended 6-30-09).
Lowest quarterly results for time period shown:
-22.51%
(quarter ended 9-30-11).
Average Annual Total Returns
(periods ended
12-31-13)
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R3 Shares
|
|
1 Year
|
|
|
5 Years
|
|
|
10 Years
|
|
Return Before Taxes
|
|
|
39.56%
|
|
|
|
16.17%
|
|
|
|
6.50%
|
|
|
|
|
|
Return After Taxes on Distributions
|
|
|
39.50%
|
|
|
|
16.02%
|
|
|
|
6.03%
|
|
|
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares
|
|
|
22.39%
|
|
|
|
13.01%
|
|
|
|
5.16%
|
|
|
|
|
|
S&P 500 Index
(reflects no deduction for fees, expenses, or taxes)
|
|
|
32.39%
|
|
|
|
17.94%
|
|
|
|
7.41%
|
|
Class R4 Shares
|
|
1 Year
|
|
|
5 Years
|
|
|
Since
Inception
(2-1-07)
|
|
Return Before Taxes
|
|
|
39.69%
|
|
|
|
16.29%
|
|
|
|
3.45%
|
|
|
|
|
|
S&P 500 Index
(reflects no deduction for fees, expenses, or taxes)
|
|
|
32.39%
|
|
|
|
17.94%
|
|
|
|
5.98%
|
|
Class R5 Shares
|
|
1 Year
|
|
|
5 Years
|
|
|
Since
Inception
(2-1-05)
|
|
Return Before Taxes
|
|
|
40.04%
|
|
|
|
16.60%
|
|
|
|
7.10%
|
|
|
|
|
|
S&P 500 Index
(reflects no deduction for fees, expenses, or taxes)
|
|
|
32.39%
|
|
|
|
17.94%
|
|
|
|
7.39%
|
|
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.