Thornburg Investment Grade Bond Managed Account Fund - Class I · NASDAQ:TIGMX

Thornburg Investment Grade Bond Managed Account Fund - Class I — Thornburg Investment Management — Q4 2021 Earnings Presentation

33 slides from Thornburg Investment Grade Bond Managed Account Fund - Class I's earnings presentation, January 2022

  1. Slide 1: Thornburg Investment Management Quarterly Update: Investment Income Builder Fund

    New Brand PowerPoint Template Q4 2021 Thornburg Investment Management Quarterly Update: Investment Income Builder Fund Brian McMahon | Vice Chairman and Chief Investment Strategist Jason Brady, CFA | President and CEO Ben Kirby, CFA | Co-Head of Investments and Managing Director DATE Matt (MONTH Bur

  2. Slide 2: Key Macroeconomic Issues

    Thornburg Investment Income Builder Fund Key Macroeconomic Issues January 2022  COVID-19 pandemic stay-at-home orders for students, workers, and consumers  Government bodies around the world are reducing the unusual fiscal stimulus persist. steps to mitigate the consequences of COVID-related econo

  3. Slide 3: A Solution That Consistently Seeks to Provide Attractive Income

    Thornburg Investment Income Builder Fund A Solution That Consistently Seeks to Provide Attractive Income INVESTIBLE KEY OBJECTIVE UNIVERSE PILLARS  Pay attractive  Global dividend-  Focus on firms’ yield today paying stocks ability and  Grow the  Global bonds and willingness to pay dividends di

  4. Slide 4: Overview of Equity Portfolio Allocation Shifts

    Thornburg Investment Income Builder Fund Overview of Equity Portfolio Allocation Shifts Thornburg Investment Income Builder equity portfolio’s comparative sector weights on various dates Increases in allocations toward SECTOR WEIGHTS (%) AS OF: From tools for digital communication MAR-20 to (Informa

  5. Slide 5: S&P 500 Annual EPS & Income Statement Summaries

    Thornburg Investment Income Builder Fund S&P 500 Annual EPS & Income Statement Summaries 2019 to 2022E: -3.5% drop in 2020 EPS ESTIMATE DETAIL 2019 2020 2021E 2022E revenues with margin pressure led to a - Dollars ($bn) 13.5% yoy EPS for the S&P 500 Index Sales 11,752 11,337 13,121 13,954 portfolio.

  6. Slide 6: 1. Taiwan Semiconductor

    Thornburg Investment Income Builder Fund 1. Taiwan Semiconductor $620 USD Billion Market Capitalization, Net TSMC (2330 TT) Cash = 2.5% of Equity Market Capitalization, 1.79% Dividend Yield. 700 Share price declined -28% from 1/14/20 to 660 3/19/2020, now recovered to new highs. 620 2021: Revenue +1

  7. Slide 7: 2. Broadcom

    Thornburg Investment Income Builder Fund 2. Broadcom $247 Billion Equity Market Capitalization, $279 BROADCOM Billion Enterprise Value, 2.46% Dividend Yield. 700 Broadcom’s share price declined -48% from 650 2/12/2020 to 3/18/2020, now more than fully recovered to a higher price. 600 550 FY 2021 Res

  8. Slide 8: 3. Total SA

    Thornburg Investment Income Builder Fund 3. Total SA $148 Billion Market Capitalization, $38 Billion Net TOTAL SA Debt, 5.9% Dividend Yield. 50 Total’s share price declined -56.7% from 1/6/20 to 3/18/2020, now mostly recovered from its March 45 2020 low. Annual EBITDA has fluctuated between $16.5 an

  9. Slide 9: 4. Orange SA

    Thornburg Investment Income Builder Fund 4. Orange SA 26 Billion Euro Market Cap, 31 Billion EUR net ORANGE SA debt & minorities, 7.1% Dividend Yield 11.0 Share px -35% from 2/19/20 to 10/1/20, not significantly recovered since. 2020 Revenue & 10.5 EBITDA +0.1%/-1% yoy; 9 Mos 2021 Revenue flattish,

  10. Slide 10: 5. Vodafone

    Thornburg Investment Income Builder Fund 5. Vodafone 38.2 Billion EUR Market Capitalization, 44.3 VODAFONE Billion EUR Net Financial Debt, 6.06% Dividend Yield 150 Vodafone’s share price declined -37% from 140 2/19/2020 to 3/16/2020, inconsistent partial 130 share price recovery since then. 120 Mino

  11. Slide 11: 6. AbbVie, Inc.

    Thornburg Investment Income Builder Fund 6. AbbVie, Inc. $240 Billion Mkt Capitalization; $68 Billion Net ABBVIE Financial Debt; $308 Billion Enterprise Value; $25.4 Billion Trailing 12-month EBITDA; 3.9% 140 Dividend Yield 130 120 110 100 90 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21

  12. Slide 12: 7. Samsung

    Thornburg Investment Income Builder Fund 7. Samsung USD$384 Billion Equity Mkt Capitalization; SAMSUNG $300 Billion Enterprise Value; $84 Billion Net Cash; 3.1% Dividend Yield 95000 90000 2021 Result: Revenue +17.7%, EBITDA +19.6% YOY to $70 Billion, Share Price Dropped -3%. 85000 80000 75000 70000

  13. Slide 13: 8. CME Group

    Thornburg Investment Income Builder Fund 8. CME Group (Formerly Chicago Mercantile Exchange): $80 CME GROUP Billion Market Capitalization, $2 Billion Net Debt, 3.1% Trailing Year Dividend Yield. 240 230 CME share price declined -37.6% from 2/23 to 220 3/23/2020, now fully recovered from March 210 20

  14. Slide 14: 9. Qualcomm

    Thornburg Investment Income Builder Fund 9. Qualcomm Multinational semiconductor & QUALCOMM telecommunications equipment company, developing foundational technologies for 210 wireless communications $211 Billion Market 190 Capitalization, $4 Billion Net Debt,, $11.6 Billion FY’21 EBITDA. 1.49% Divid

  15. Slide 15: 10. Tesco

    Thornburg Investment Income Builder Fund 10. Tesco U.K-based food & general merchandise retailer: TESCO GBP 22.2 billion market capitalization, GBP 10.2 billion net debt, GBP 3.6 billion FY’21 320 EBITDA, with expected > 20% y/y increase for 300 February 2022 FY. 280 Tesco sold underperforming Asian

  16. Slide 16: Stock & Bond Yields from Identical Issuers

    Thornburg Investment Income Builder Fund Stock & Bond Yields from Identical Issuers Top 10 Investment Positions: Equity Dividend Yield vs. Traded Debt Yield, Same Issuer TRAILING 12-MONTH CURRENT MARKET DEBT SPECIFIC DEBT ISSUE DIVIDEND YIELD (%) YIELD (%) Taiwan Semiconductor Manufacturing Co. Ltd.

  17. Slide 17: Next 15 Equity Holdings (page 1 of 2)

    Thornburg Investment Income Builder Fund Next 15 Equity Holdings (page 1 of 2) The 10 investments shown were the 11th through the 20th largest equity investments in the Thornburg Investment Income Builder portfolio as of December 31, 2021. Together, the 15 investments shown on the next two pages acc

  18. Slide 18: Next 15 Equity Holdings (page 2 of 2)

    Thornburg Investment Income Builder Fund Next 15 Equity Holdings (page 2 of 2) The 5 investments shown were the 21st through the 25th largest equity investments in the Thornburg Investment Income Builder portfolio as of December 31, 2021. 2020 YEAR 2021 PRICE CHANGE DIVIDEND YIELD NAME OF COMPANY PR

  19. Slide 19: Next 28 Equity Holdings

    Thornburg Investment Income Builder Fund Next 28 Equity Holdings 28 equity investments with the smallest weightings in the portfolio at 31/12/2021, shown by weighting, top to bottom and left to right. Weightings range from approximately 1.3% to < 0.10% of portfolio assets; does not include 4 small p

  20. Slide 20: Potential to Grow the Distribution over Time

    Thornburg Investment Income Builder Fund Potential to Grow the Distribution over Time Consensus estimates for dividend growth over the next 12 months 2022 % OF EQUITY PORTFOLIO EST. YIELD Holdings Growing the Dividend 73% 3.5% Dividend growing 0-5% 20% Dividend growing 5-10% 19% Dividend growing 10%

  21. Slide 21: Selected World Market Index Returns

    Thornburg Investment Income Builder Fund Selected World Market Index Returns Total Returns (USD) 2015 2016 2017 2018 2019 2020 2021 1Q21 2Q21 3Q21 4Q21 USA: S&P 500 1.38% 11.96% 21.83% -4.38% 31.49% 18.40% 28.71% 6.17% 8.55% 0.58% 11.03% USA: Russell 3000 Growth 5.09% 7.39% 29.59% -2.12% 35.85% 38.2

  22. Slide 22: Portfolio Characteristics

    Thornburg Investment Income Builder Fund Portfolio Characteristics PORTFOLIO COMPOSITION EQUITY COMPONENTS % of Portfolio P/E Trailing 1-Yr 16.9x Foreign Equity 52% P/E Forward 1-Yr Estimate 10.8x Price to Book 1.5x Domestic Equity 35% Price to Cash Flow 6.1x Return on Equity (ROE) 13.5% Domestic Ot

  23. Slide 23: Investment Performance

    Thornburg Investment Income Builder Fund Investment Performance AVERAGE ANNUAL TOTAL RETURNS (%) QTR YTD 1-YR 3-YR 5-YR 10-YR ITD A Shares TIBAX (Incep: 12/24/2002) 30-day SEC Yield: 2.24% | TTM Yield: 4.86% Without sales charge 7.98 20.02 20.02 11.95 8.69 8.00 9.28 With sales charge 3.13 14.62 14.6

  24. Slide 24: Quarterly Total Returns

    Thornburg Investment Income Builder Fund Quarterly Total Returns I Shares 25% 15% 5% -5% -15% -25% -35% 4Q03 2Q04 4Q04 2Q05 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 4Q20 2Q21 4Q21 Past perfor

  25. Slide 25: Flexibility with Fixed Income

    Thornburg Investment Income Builder Fund Flexibility with Fixed Income We buy bonds when risk-adjusted returns are attractive. 50% 25% 45% IIB Cash & FI Fixed Income as a Percent of Portfolio 40% U.S. HY: Yield to Worst 20% 35% European HY: Yield to Worst 30% 15% Yield to Worst 25% 20% 10% 15% 10% 5

  26. Slide 26: Quarterly Distributions

    Thornburg Investment Income Builder Fund Quarterly Distributions Cents per I Share (TIBIX) Q1 Q2 Q3 Q4 Total 2003 14.5¢ 14.5¢ 2004 11.7¢ 13.6¢ 16.0¢ 22.7¢ 64.0¢ 2005 11.6¢ 14.2¢ 18.0¢ 29.7¢ 73.5¢ 2006 14.4¢ 18.0¢ 21.2¢ 35.0¢ 88.6¢ 2007 16.2¢ 20.6¢ 23.6¢ 39.0¢ 99.4¢ 2008 19.8¢ 23.8¢ 28.0¢ 38.3¢ 109.9

  27. Slide 27: Consistently Delivered a 4%+ Yield Since Inception

    Thornburg Investment Income Builder Fund Consistently Delivered a 4%+ Yield Since Inception 9% 8% IIB Yield 7.9% Blended Index 7% Bloomberg U.S. Corp 6.6% 6.5% 6.6% 2003 – 2021 6% CPI 5% 5.5% 5.3% 5.0% 4.8% 4.8% 5.1% 5.0% 5.0% 4% 4.2% 4.2% 4.3% 4.2% 4.4% 4.1% Dividend: 5.2% CAGR 3% 4.4% NAV: 3.9% CA

  28. Slide 28: Rolling 5-Year Performance

    Thornburg Investment Income Builder Fund Rolling 5-Year Performance I Shares | There have been 57 quarters since 31/12/2007 with rolling 5-year look backs, with only one negative observation. 7 6 # of occurrences within each 50 bps average annual 5-year return range 5 4 3 2 1 0 5-Year Return Range P

  29. Slide 29: Hypothetical $100,000 Investment: Quarterly Dividend

    Thornburg Investment Income Builder Fund Hypothetical $100,000 Investment A Shares Income Today: trailing 12-month yield = 5.1% $6,000 $500k Growth in Income: cumulative dividends total $154,765 $450k $5,000 Capital $100,000  $218,213 = $118, 213 $400k Appreciation: $350k $4,000 Quarterly Dividend

  30. Slide 30: Hypothetical $100,000 with Reinvestment

    Thornburg Investment Income Builder Fund Hypothetical $100,000 with Reinvestment A Shares Income Today: trailing 12-month yield = 5.1% $6,000 cumulative dividends total $257,007 $600k Growth in Income: Beginning shares 8,375  Current shares Quarterly Dividend Reinvested 22,173 $5,000 $500k Capital

  31. Slide 31: Historically, Dividends Have Been Important to Total Return (S&P 500 Index)

    Thornburg Investment Income Builder Fund Historically, Dividends Have Been Important to Total Return (S&P 500 Index) Over the long term, total shareholder returns (TSR) are roughly 50% price/50% dividends. INCOME AS PRICE INCOME TOTAL PERCENTAGE DECADE APPRECIATION COMPONENT RETURN OF TOTAL RETURN 1

  32. Slide 32: Q&A

    Q&A

  33. Slide 33: www.thornburg.com

    www.thornburg.com Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or visit thornburg.com. Read them carefully before investing. Thornburg Funds

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