Thornburg Investment Income Builder: A Comprehensive Review

Introduction

Thornburg Investment Income Builder is a mutual fund that is designed to provide investors with a high level of income, while also seeking capital appreciation. The fund is managed by Thornburg Investment Management, a well-known investment management firm that has been in business since 1982.

Investment Objective

The investment objective of the Thornburg Investment Income Builder fund is to provide a high level of current income, with a secondary objective of capital appreciation. The fund invests primarily in a diversified portfolio of income-producing securities, including bonds, preferred stocks, and dividend-paying common stocks.

Investment Strategy

The investment strategy of the Thornburg Investment Income Builder fund is to seek out high-quality, income-producing securities that have the potential to provide a steady stream of income to investors. The fund’s portfolio managers use a bottom-up approach to security selection, focusing on individual securities rather than market trends or macroeconomic factors.

Performance

Over the past five years, the Thornburg Investment Income Builder fund has delivered an average annual return of 6.45%, which is slightly below the benchmark index. However, the fund has consistently outperformed its Morningstar category peers over the same time period.

Risk

As with any investment, there is a certain level of risk associated with investing in the Thornburg Investment Income Builder fund. The fund invests primarily in income-producing securities, which can be subject to interest rate risk, credit risk, and market risk.

Fees

The expense ratio for the Thornburg Investment Income Builder fund is 0.79%, which is slightly higher than the average expense ratio for similar funds. However, the fund’s strong performance over the long term may justify the higher fees.

Conclusion

Overall, the Thornburg Investment Income Builder fund is a solid choice for investors who are seeking a high level of income, while also seeking some degree of capital appreciation. The fund’s experienced management team, solid investment strategy, and consistent performance make it a strong option for income-focused investors.

People Also Ask

What is the Thornburg Investment Income Builder fund?

The Thornburg Investment Income Builder fund is a mutual fund that is designed to provide investors with a high level of income, while also seeking capital appreciation. The fund invests primarily in a diversified portfolio of income-producing securities, including bonds, preferred stocks, and dividend-paying common stocks.

How does the Thornburg Investment Income Builder fund invest?

The Thornburg Investment Income Builder fund invests primarily in a diversified portfolio of income-producing securities, including bonds, preferred stocks, and dividend-paying common stocks. The fund’s portfolio managers use a bottom-up approach to security selection, focusing on individual securities rather than market trends or macroeconomic factors.

What is the expense ratio for the Thornburg Investment Income Builder fund?

The expense ratio for the Thornburg Investment Income Builder fund is 0.79%, which is slightly higher than the average expense ratio for similar funds. However, the fund’s strong performance over the long term may justify the higher fees.