Semi-Annual Report. March 31, 2018

Transcription

1 Semi-Annul Report Mrch 31, 2018

2 About Thornburg Investment Mngement It s more thn wht we do. It s how we do it. At Thornburg, we re very different in how we think, invest, nd re structured. We believe this difference is wht mkes us successful in helping individuls rech their long-term finncil gols. Flexible Perspective Our perspective on investment opportunities is more flexible thn most, viewing wide rnge of opportunities beyond conventionl boundries to find hidden vlue. Collbortion Collectively, we hone ides vi borderless cross-pollintion for better judgment nd better results. Portfolio Construction Disciplined construction guided more by our convictions thn convention. CONVICTION Thorough nlysis nd our reltive-vlue frmework led to conviction in our securities selection. UNCONVENTIONAL Active mngement mens we seek the best vlue for our clients rther thn using conventionl benchmrks s our strting point. Structured for Excellence How we think nd how we invest is mde possible by how we re structured. TEAM APPROACH FAR FROM THE HERD ACCESS & TRANSPARENCY 2 Semi-Annul Report

3 Thornburg Core Growth Fund Semi-Annul Report Mrch 31, 2018 Tble of Contents Letter to Shreholders....4 Performnce Summry Fund Summry...7 Schedule of Investments...8 Sttement of Assets nd Libilities SttementofOpertions...12 Sttements of Chnges in Net Assets Notes to Finncil Sttements Finncil Highlights...24 Expense Exmple OtherInformtion...27 Trustees Sttement to Shreholders SHARE CLASS NASDAQ SYMBOL CUSIP Clss A THCGX Clss C TCGCX Clss I THIGX Clss R3 THCRX Clss R4 TCGRX Clss R5 THGRX Clss I, R3, R4, nd R5 shres my not be vilble to ll investors. Minimum investments for Clss I shres my be higher thn those for other clsses. Investments crry risks, including possible loss of principl. Additionl risks my be ssocited with investments outside the United Sttes, especilly in emerging mrkets, including currency fluctutions, illiquidity, voltility, nd politicl nd economic risks. Investments in smll- nd mid-cpitliztion compnies my increse the risk of greter price fluctutions. Plese see the Fund s prospectus for discussion of the risks ssocited with n investment in the Fund. Investments in the Fund re not FDIC insured, nor re they deposits of or gurnteed by bnk or ny other entity. Funds invested in smller number of holdings my expose n investor to greter voltility. Semi-Annul Report 3

4 Letter to Shreholders Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) April 30, 2018 Der Fellow Shreholder: For the six months ended Mrch 31, 2018, Thornburg Core Growth Fund returned 10.97% for clss A shres, t net sset vlue (NAV), outperforming its benchmrk, the Russell 3000 Growth Index, which returned 9.20%. On Mrch 31, 2018, the NAV per shre of the Clss A shres ws $ The beginning of the period shred the low voltility, positive return chrcteristics of the 2017 clendr yer. But tht chnged s we entered 2018 nd voltility returned to equity mrkets fter n extended period of clm. During the first qurter, U.S. mrkets rllied nerly 10%, then declined 10%, rebounded 10% nd declined 10% gin. Lte-cycle economic worries re strting to weigh on mrket sentiment s rte hikes will eventully hve tightening effect. Tht s especilly the cse s we my be strting to see the beginning of wge infltion, which is generlly relible indictor of the end of cycle. Geopoliticl risks re lso rmping, with trde wr possibility nd incresed conflict in the Middle Est relity. Performnce Discussion The Core Growth portfolio struggled to keep up with the mrket during the first hlf of the period, but wethered the voltile beginning of the yer quite well. Strong performnce in the consumer discretionry, technology nd finncil sectors drove mrket returns. Helth cre, energy nd mterils were wek performers. Core Growth ws led by technology, finncils, consumer stples nd energy stocks, with the primry res of wekness being the consumer discretionry nd industril sectors. Leding contributors to performnce for the period included Amzon, DexCom, FleetCor Technologies, ServiceNow nd Netflix. Amzon nd Netflix continued to deliver very strong fundmentl results s their well-publicized businesses grow t high rte. Dexcom bounced bck during the period fter concerns round competition brought the stock down during the second hlf of Dexcom mkes glucose monitoring system for dibetes ptients tht we believe is the best on the mrket nd will remin so for the foreseeble future. ServiceNow is softwre-s--service (SAAS) compny tht provides enterprise softwre for IT mngement. It hs continued to grow t high rte s its leding pltform is being brodly dopted. FleetCor Technologies provides services tht help customers mnge their motor fleets. FleetCor s primry services re fleet crds nd pyment processing services. FleetCor hs grown orgniclly s it tkes shre with its superior product, nd through cquisition s it rolls up smller competitors nd grdully expnds its geogrphic footprint. Leding detrctors to performnce for the period included Criteo, Newell Brnds, Generl Electric, Expedi, nd Alexion Phrmceuticls. During the period Generl Electric cut its dividend nd future ernings expecttions. Its power business hs been the lrgest disppointment, with heightened competition nd softening end demnd. We exited the stock due to fundmentl deteriortion. Criteo is re-trgeting compny tht works with retilers to serve personlized online dvertisements to consumers who hve previously visited the compny s website. During the yer, Apple nnounced tht its new operting system would utomticlly purge third-prty internet cookies tht Criteo uses to trck users of Sfri, Apple s internet browser. The stock hs been depressed while it works through this period of trnsition. We still believe Criteo is well positioned s the only independent provider of retrgeting services. Newell Brnds is globl mrketer of consumer nd commercil products with portfolio of over 200 leding brnds, including Shrpie, Rubbermid, Grco, Colemn, Ynkee Cndle nd mny others. The compny reported wek set of third-qurter ernings, nd core sles growth fell short of expecttions due to retiler destocking nd inventory djustments t some key ccounts. With limited growth nd ernings visibility going forwrd, we exited the position in fvor of more compelling opportunities. Expedi is one of the world s leding online trvel gents. During the period the stock ws under pressure s it kicked off cmpign to ccelerte growth. We think the incresed investments in its business re prudent long-term decision nd re willing to look pst the ner-term ernings pressure. Alexion Phrmceuticls is biophrmceuticl compny tht develops nd commercilizes drugs to tret rre disorders such s proxysml nocturnl hemoglobinuri. During the period revenue from its lrgest drug, Soliris, ws slightly disppointing nd the stock de-rted. 4 Semi-Annul Report

5 Letter to Shreholders, Continued Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) Outlook We remin optimistic tht globl growth cn continue to be brod bsed nd bove trend, but we do see modertion in its momentum. As lwys, we do not ttempt to time mrkets or geopoliticl events, but rther tke long-term disciplined pproch to investing. We seek to cpture returns through our fundmentlly driven process tht leds us to the most compelling, high-qulity growth stocks. Thnk you for investing longside us in Thornburg Core Growth Fund. Sincerely, Greg Dunn Mnging Director Portfolio Mnger The mtters discussed in this report my constitute forwrd-looking sttements mde pursunt to the sfe hrbor provisions of the Securities Litigtion Reform Act of These include ny dvisor or portfolio mnger prediction, ssessment, nlysis or outlook for individul securities, industries, investment styles, mrket sectors nd/or mrkets. These sttements involve risks nd uncertinties. In ddition to the generl risks described for ech fund in its current prospectus, other fctors bering on these reports include the ccurcy of the dvisor s or portfolio mnger s forecsts nd predictions, the ppropriteness of the investment strtegies designed by the dvisor or portfolio mnger nd the bility of the dvisor or portfolio mnger to implement their strtegies efficiently nd successfully. Any one or more of these fctors, s well s other risks ffecting the securities mrkets generlly, could cuse the ctul results of ny fund to differ mterilly s compred to its benchmrks. The views expressed re subject to chnge nd do not necessrily reflect the views of Thornburg Investment Mngement, Inc. This informtion should not be relied upon s recommendtion or investment dvice nd is not intended to predict the performnce of ny investment or mrket. Performnce results of individul shre clsses will vry bsed on the fees nd expenses ssocited with ech shre clss, nd my be higher or lower thn other shre clsses within the sme Fund. Plese see Performnce Summry for performnce results of ech shre clss. Semi-Annul Report 5

6 Performnce Summry Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) AVERAGE ANNUAL TOTAL RETURNS 1-YR 3-YR 5-YR 10-YR SINCE INCEP. Clss A Shres (Incep: 12/27/00) Without sles chrge 20.31% 8.35% 11.09% 8.27% 6.71% With sles chrge 14.90% 6.70% 10.07% 7.77% 6.43% Clss C Shres (Incep: 12/27/00) Without sles chrge 19.38% 7.52% 10.25% 7.45% 5.88% With sles chrge 18.38% 7.52% 10.25% 7.45% 5.88% Clss I Shres (Incep: 11/3/03) 20.81% 8.79% 11.54% 8.75% 9.31% Clss R3 Shres (Incep: 7/1/03) 20.20% 8.24% 10.98% 8.20% 9.47% Clss R4 Shres (Incep: 2/1/07) 20.33% 8.35% 11.09% 8.31% 5.99% Clss R5 Shres (Incep: 10/3/05) 20.77% 8.78% 11.54% 8.74% 8.32% Russell 3000 Growth Index (Since 12/27/00) 21.06% 12.57% 15.32% 11.31% 5.87% GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT $30,000 $20,000 $10,000 FINAL VALUE Thornburg Core Growth Fund, A Shres (with sles chrge) $29,315 Russell 3000 Growth Index $26,766 $0 Dec Dec-05 Dec-08 Dec-11 Dec-14 Mr-18 Performnce dt shown represents pst performnce nd is no gurntee of future results. Investment return nd principl vlue will fluctute so shres, when redeemed, my be worth more or less thn their originl cost. Current performnce my be lower or higher thn quoted. For performnce current to the most recent month end, visit thornburg.com or cll The performnce informtion does not reflect the deduction of txes tht shreholder would py on distributions or the redemption of Fund shres. Returns reflect the reinvestment of dividends nd cpitl gins. Clss A shres re sold with mximum sles chrge of 4.50%. Clss C shres re subject to 1% CDSC for the first yer only. There is no sles chrge for Clss I, R3, R4 nd R5 shres. As disclosed in the most recent prospectus, the totl nnul fund operting expenses before ny fee wivers or expense reimbursements re s follows: A shres, 1.36%; C shres, 2.12%; I shres, 1.08%; R3 shres, 1.80%; R4 shres, 1.96%; R5 shres, 1.37%. Thornburg Investment Mngement nd/or Thornburg Securities Corportion hve contrctully greed to wive fees nd reimburse expenses through t lest Februry 1, 2019, for some of the shre clsses, resulting in net expense rtios of the following: I shres, 0.99%, R3 shres, 1.50%; R4 shres, 1.40%; R5 shres, 0.99%. For more detiled informtion on fund expenses nd wivers/reimbursements plese see the Fund s prospectus. Glossry The Russell 3000 Growth Index is n unmnged index comprised of those Russell 3000 compnies with higher price-to-book rtios nd high forecsted growth vlues. The stocks in this index re members of either the Russell 1000 Growth or the Russell 2000 Growth indices. Source: Frnk Russell Compny. The performnce of ny index is not indictive of the performnce of ny prticulr investment. Unless otherwise noted, index returns reflect the reinvestment of income dividends nd cpitl gins, if ny, but do not reflect fees, brokerge commissions or other expenses of investing. Investors my not mke direct investments into ny index. 6 Semi-Annul Report

7 Fund Summry Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) OBJECTIVES AND STRATEGIES The Fund seeks long-term growth of cpitl by investing in equity securities selected for their growth potentil. The Fund expects to invest primrily in domestic equity securities (primrily common stocks) selected for their growth potentil. However, the Fund my own vriety of securities, including foreign equity securities nd prtnership interests. The Fund my lso invest in developing countries. MARKET CAPITALIZATION EXPOSURE BASKET STRUCTURE TOP TEN EQUITY HOLDINGS Smll Cp (< $2.5 B) Mid Cp ($ B) Lrge Cp (> $12 B) Consistent Growth Emerging Growth Growth Industry Leders Other Assets Less Libilities 2.8% 22.5% 74.7% 23.7% 29.1% 36.7% 10.5% Vis, Inc. 4.4% FleetCor Technologies, Inc. 3.3% Amzon.com, Inc. 3.3% Ls Vegs Snds Corp. 3.2% Alphbet, Inc. 2.9% Fcebook, Inc. 2.8% SVB Finncil Group 2.6% Comcst Corp. 2.6% Nevro Corp. 2.5% Worldpy, Inc. 2.4% SECTOR EXPOSURE Informtion Technology 36.1% Consumer Discretionry 17.3% Helth Cre 13.6% Finncils 9.1% Consumer Stples 6.6% Energy 3.5% Mterils 3.3% Other Assets Less Libilities 10.5% TOP TEN INDUSTRY GROUPS Softwre & Services 32.5% Retiling 10.5% Helthcre Equipment & Services 7.4% Phrmceuticls, Biotechnology & Life Sciences 6.2% Bnks 4.9% Food, Beverge & Tobcco 4.5% Diversified Finncils 4.2% Medi 3.6% Technology Hrdwre & Equipment 3.6% Energy 3.5% COUNTRY EXPOSURE* (percent of equity holdings) United Sttes 89.4% Irelnd 2.6% Isrel 1.9% United Kingdom 1.9% Argentin 1.6% Germny 1.4% Frnce 1.2% * Holdings re clssified by country of risk s determined by MSCI nd Bloomberg. There is no gurntee tht the Fund will meet its investment objectives. All dt is subject to chnge. Chrts my not dd up to 100% due to rounding. Semi-Annul Report 7

8 Schedule of Investments Thornburg Core Growth Fund Mrch 31, 2018 SHARES/ PRINCIPAL AMOUNT VALUE COMMON STOCK 89.5% BANKS 4.9% Bnks 4.9% JPMorgn Chse & Co. 136,234 $ 14,981,653 SVB Finncil Group 72,713 17,451,847 32,433,500 CONSUMER SERVICES 3.2% Hotels, Resturnts & Leisure 3.2% Ls Vegs Snds Corp. 296,200 21,296,780 21,296,780 DIVERSIFIED FINANCIALS 4.2% Cpitl Mrkets 4.2% Affilited Mngers Group, Inc. 75,921 14,393,103 CME Group, Inc. 81,050 13,109,027 27,502,130 ENERGY 3.5% Oil, Gs & Consumble Fuels 3.5% Concho Resources, Inc. 77,309 11,621,862 Pioneer Nturl Resources Co. 65,924 11,324,425 22,946,287 FOOD & STAPLES RETAILING 2.1% Food & Stples Retiling 2.1% Wlmrt, Inc. 155,678 13,850,672 13,850,672 FOOD, BEVERAGE & TOBACCO 4.5% Beverges 2.2% Monster Beverge Corp. 256,349 14,665,726 Food Products 2.3% Kerry Group plc Clss A 149,820 15,190,108 29,855,834 HEALTHCARE EQUIPMENT & SERVICES 7.4% Helth Cre Equipment & Supplies 5.6% DexCom, Inc. 189,048 14,019,800 Inogen, Inc. 52,994 6,509,783 Nevro Corp. 191,732 16,617,412 Helth Cre Providers & Services 1.8% DVit, Inc. 175,114 11,547,017 48,694,012 MATERIALS 3.3% Chemicls 3.3% CF Industries Holdings, Inc. 320,001 12,073,638 Monsnto Co. 86,300 10,070,347 22,143,985 MEDIA 3.6% Medi 3.6% Comcst Corp. Clss A 498,426 17,031,217 Criteo S.A. ADR 267,005 6,899,409 23,930,626 PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES 6.2% Biotechnology 4.9% Alexion Phrmceuticls, Inc. 114,625 12,776,103 Alkermes plc 158,592 9,191,992 Giled Sciences, Inc. 136,300 10,275,657 8 Semi-Annul Report

9 Schedule of Investments, Continued Thornburg Core Growth Fund Mrch 31, 2018 SHARES/ PRINCIPAL AMOUNT VALUE b Phrmceuticls 1.3% Byer AG 76,500 $ 8,640,137 40,883,889 RETAILING 10.5% Internet & Direct Mrketing Retil 8.4% Amzon.com, Inc. 14,976 21,675,364 Booking Holdings, Inc. 6,496 13,514,214 Expedi Group, Inc. 108,535 11,983,349 Netflix, Inc. 26,829 7,923,945 Specilty Retil 2.1% TJX Compnies, Inc. 172,100 14,036,476 69,133,348 SOFTWARE & SERVICES 32.5% Informtion Technology Services 13.0% FleetCor Technologies, Inc. 107,656 21,800,340 PyPl Holdings, Inc. 178,704 13,558,272 Switch, Inc. Clss A 336,800 5,358,488 Vis, Inc. Clss A 242,429 28,999,357 Worldpy, Inc. Clss A 194,621 16,005,631 Internet Softwre & Services 11.0% Alphbet, Inc. Clss C 18,729 19,324,395 Auto Trder Group plc 2,250,674 11,070,887 Fcebook, Inc. Clss A 114,662 18,321,841 Wix.com Ltd. 141,507 11,256,882 Zillow Group, Inc. 241,138 12,973,224 Softwre 8.5% Activision Blizzrd, Inc. 127,100 8,574,166 Globnt S.A. 190,509 9,818,834 Proofpoint, Inc. 71,634 8,141,204 ServiceNow, Inc. 78,712 13,022,900 Splunk, Inc. 87,374 8,596,728 Workdy, Inc. Clss A 64,828 8,240, ,063,436 TECHNOLOGY HARDWARE & EQUIPMENT 3.6% Communictions Equipment 1.5% Plo Alto Networks, Inc. 54,675 9,924,606 Technology Hrdwre, Storge & Peripherls 2.1% Apple, Inc. 81,792 13,723,062 23,647,668 TOTAL COMMON STOCK (Cost $389,164,727) 591,382,167 SHORT-TERM INVESTMENTS 9.5% Thornburg Cpitl Mngement Fund 6,274,543 62,745,435 TOTAL SHORT-TERM INVESTMENTS (Cost $62,745,435) 62,745,435 TOTAL INVESTMENTS 99.0% (Cost $451,910,162) $654,127,602 OTHER ASSETS LESS LIABILITIES 1.0% 6,865,844 NET ASSETS 100.0% $660,993,446 Footnote Legend Non-income producing. b Investment in Affilites. Portfolio Abbrevitions To simplify the listings of securities, bbrevitions re used per the tble below: ADR Americn Depositry Receipt See notes to finncil sttements. Semi-Annul Report 9

10 Sttement of Assets nd Libilities Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) ASSETS Investments t vlue (Note 3) Non-ffilited issuers (cost $389,164,727) $ 591,382,167 Non-controlled ffilited issuer (cost $62,745,435) 62,745,435 Csh 222,150 Receivble for investments sold 12,746,010 Receivble for fund shres sold 299,375 Dividends receivble 202,792 Dividend nd interest reclim receivble 1,089 Prepid expenses nd other ssets 42,606 Totl Assets 667,641,624 LIABILITIES Pyble for investments purchsed 4,952,944 Pyble for fund shres redeemed 795,428 Pyble to investment dvisor nd other ffilites (Note 4) 678,432 Accounts pyble nd ccrued expenses 221,374 Totl Libilities 6,648,178 NET ASSETS $ 660,993,446 NET ASSETS CONSIST OF Accumulted net investment loss $ (5,536,192) Net unrelized pprecition on investments 202,217,347 Accumulted net relized gin (loss) (148,125,653) Net cpitl pid in on shres of beneficil interest 612,437,944 $ 660,993, Semi-Annul Report

11 Sttement of Assets nd Libilities, Continued Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) NET ASSET VALUE Clss A Shres: Net sset vlue nd redemption price per shre ($197,865,927 pplicble to 5,493,508 shres of beneficil interest outstnding - Note 5) $ Mximum sles chrge, 4.50% of offering price 1.70 Mximum offering price per shre $ Clss C Shres: Net sset vlue nd offering price per shre* ($130,038,710 pplicble to 4,138,368 shres of beneficil interest outstnding - Note 5) $ Clss I Shres: Net sset vlue, offering nd redemption price per shre ($253,575,319 pplicble to 6,578,629 shres of beneficil interest outstnding - Note 5) $ Clss R3 Shres: Net sset vlue, offering nd redemption price per shre ($44,363,168 pplicble to 1,238,604 shres of beneficil interest outstnding - Note 5) $ Clss R4 Shres: Net sset vlue, offering nd redemption price per shre ($4,755,842 pplicble to 131,536 shres of beneficil interest outstnding - Note 5) $ Clss R5 Shres: Net sset vlue, offering nd redemption price per shre ($30,394,480 pplicble to 789,373 shres of beneficil interest outstnding - Note 5) $ * Redemption price per shre is equl to net sset vlue less ny pplicble contingent deferred sles chrge. See notes to finncil sttements. Semi-Annul Report 11

12 Sttement of Opertions Thornburg Core Growth Fund Six Months Ended Mrch 31, 2018 (Unudited) INVESTMENT INCOME Dividend income Non-ffilited issuers $ 2,145,935 Non-controlled ffilited issuer 269,138 Totl Income 2,415,073 EXPENSES Investment dvisory fees (Note 4) 2,815,134 Administrtion fees (Note 4) Clss A Shres 107,100 Clss C Shres 72,737 Clss I Shres 75,132 Clss R3 Shres 25,501 Clss R4 Shres 2,801 Clss R5 Shres 9,380 Distribution nd service fees (Note 4) Clss A Shres 241,580 Clss C Shres 654,641 Clss R3 Shres 114,340 Clss R4 Shres 6,189 Trnsfer gent fees Clss A Shres 104,585 Clss C Shres 81,346 Clss I Shres 95,222 Clss R3 Shres 66,987 Clss R4 Shres 10,311 Clss R5 Shres 51,150 Registrtion nd filing fees Clss A Shres 6,602 Clss C Shres 6,630 Clss I Shres 6,024 Clss R3 Shres 5,852 Clss R4 Shres 7,157 Clss R5 Shres 6,040 Custodin fees (Note 2) 37,430 Professionl fees 26,203 Trustee nd officer fees (Note 4) 14,427 Other expenses 36,006 Totl Expenses 4,686,507 Less: Expenses reimbursed by investment dvisor (Note 4) (203,901) Net Expenses 4,482,606 Net Investment Loss $ (2,067,533) 12 Semi-Annul Report

13 Sttement of Opertions, Continued Thornburg Core Growth Fund Six Months Ended Mrch 31, 2018 (Unudited) REALIZED AND UNREALIZED GAIN (LOSS) Net relized gin (loss) on: Non-ffilited issuer investments $ 31,155,910 Foreign currency trnsctions (704) 31,155,206 Net chnge in unrelized pprecition (deprecition) on: Non-ffilited issuer investments 38,678,329 Foreign currency trnsltions 45 38,678,374 Net Relized nd Unrelized Gin 69,833,580 Net Increse in Net Assets Resulting from Opertions $ 67,766,047 See notes to finncil sttements. Semi-Annul Report 13

14 Sttements of Chnges in Net Assets Thornburg Core Growth Fund INCREASE (DECREASE) IN NET ASSETS FROM SIX MONTHS ENDED MARCH 31, 2018* YEAR ENDED SEPTEMBER 30, 2017 OPERATIONS Net investment loss $ (2,067,533) $ (5,077,617) Net relized gin (loss) on investments nd foreign currency trnsctions 31,155,206 74,010,155 Net unrelized pprecition (deprecition) on investments nd foreign currency trnsltions 38,678,374 18,445,509 Net Increse in Net Assets Resulting from Opertions 67,766,047 87,378,047 FUND SHARE TRANSACTIONS (NOTE 5) Clss A Shres (9,298,116) (38,160,794) Clss C Shres (13,297,945) (44,372,259) Clss I Shres (7,299,452) 5,746,285 Clss R3 Shres (7,454,295) (15,580,646) Clss R4 Shres (1,105,623) (2,258,476) Clss R5 Shres (5,057,371) (11,221,929) Net Increse (Decrese) in Net Assets 24,253,245 (18,469,772) NET ASSETS Beginning of Period 636,740, ,209,973 End of Period $ 660,993,446 $ 636,740,201 Accumulted net investment loss $ (5,536,192) $ (3,468,659) * Unudited. See notes to finncil sttements. 14 Semi-Annul Report

15 Notes to Finncil Sttements Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) NOTE 1 ORGANIZATION Thornburg Core Growth Fund (the Fund ) is diversified series of Thornburg Investment Trust (the Trust ). The Trust ws orgnized s Msschusetts business trust under Declrtion of Trust dted June 3, 1987 nd is registered s diversified, open-end mngement investment compny under the Investment Compny Act of 1940, s mended. The Fund is currently one of twenty-one seprte series of the Trust. Ech series is considered to be seprte entity for finncil reporting nd tx purposes nd bers expenses directly ttributble to it. The Fund seeks long-term cpitl pprecition by investing in equity securities selected for their growth potentil. The Fund currently offers six clsses of shres of beneficil interest: Clss A, Clss C, Institutionl Clss ( Clss I ), nd Retirement Clsses ( Clss R3, Clss R4, nd Clss R5 ). Ech clss of shres of the Fund represents n interest in the sme portfolio of investments, except tht (i) Clss A shres re sold subject to front-end sles chrge collected t the time the shres re purchsed nd ber service fee, (ii) Clss C shres re sold t net sset vlue without sles chrge t the time of purchse, but re subject to contingent deferred sles chrge upon redemption within one yer of purchse, nd ber both service fee nd distribution fee, (iii) Clss I shres re sold t net sset vlue without sles chrge t the time of purchse nd my be subject to service fee, (iv) Clss R3 shres re sold t net sset vlue without sles chrge t the time of purchse, but ber both service fee nd distribution fee, (v) Clss R4 shres re sold t net sset vlue without sles chrge t the time of purchse, but ber service fee, (vi) Clss R5 shres re sold t net sset vlue without sles chrge t the time of purchse nd my be subject to service fee, nd (vii) the respective clsses my hve different reinvestment privileges nd conversion rights. Additionlly, the Fund my llocte mong its clsses certin expenses, to the extent llocble to specific clsses, including trnsfer gent fees, government registrtion fees, certin printing nd postge costs, nd dministrtive nd legl expenses. Currently, clss specific expenses of the Fund re limited to service nd distribution fees, dministrtion fees, nd certin registrtion nd trnsfer gent expenses. The following is summry of significnt ccounting policies followed by the Fund in the preprtion of its finncil sttements. The Fund prepres its finncil sttements in conformity with United Sttes generlly ccepted ccounting principles ( GAAP ), including investment compny ccounting nd reporting guidnce in the Finncil Accounting Stndrds Bord (the FASB ) Accounting Stndrd Codifiction Topic 946. NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Security Vlution: All investments in securities held by the Fund re vlued s described in Note 3. Alloction of Income, Gins, Losses nd Expenses: Net investment income (other thn clss specific expenses) nd relized nd unrelized gins nd losses re llocted dily to ech clss of shres bsed upon the reltive net sset vlue of outstnding shres (or the vlue of the dividend-eligible shres, s pproprite) of ech clss of shres t the beginning of the dy (fter djusting for the current cpitl shres ctivity of the respective clss). Expenses common to ll Funds re llocted mong the Funds comprising the Trust bsed upon their reltive net sset vlues or other pproprite lloction methods. Operting expenses directly ttributble to specific clss re chrged ginst the operting income of tht clss. Dividends nd Distributions to Shreholders: Dividends nd distributions to shreholders, which re determined in ccordnce with federl income tx regultions nd my differ from GAAP, re recorded on the ex-dividend dte. Ordinry income distributions, if ny, re declred nd pid nnully. Cpitl gin distributions, if ny, re declred nd pid nnully nd more often if deemed necessry by Thornburg Investment Mngement, Inc., the Trust s investment dvisor (the Advisor ). Dividends re pid nd re reinvested in dditionl shres of the Fund t net sset vlue per shre t the close of business on the ex-dividend dte, or t the shreholder s option, pid in csh. Investment Income: Dividend income is recorded on the ex-dividend dte. Certin income from foreign investments is recognized s soon s informtion is vilble to the Fund. Interest income is ccrued s erned. Premiums nd discounts re mortized nd ccreted, respectively, to cll dtes or mturity dtes using the effective yield method of the respective investments. These mounts re included in Interest income on the Sttement of Opertions. Custodin Fees: Custodin fees disclosed in the Sttement of Opertions my include interest expenses incurred by the Fund on ny csh overdrfts of its custodin ccount during the period. Such csh overdrfts my result from the effects of filed trdes in portfolio securities nd from csh outflows resulting from unnticipted shreholder redemption ctivity. The Fund pys interest to its custodin on ny such csh overdrft t rte set periodiclly t the custodin s discretion of the overdrft mount in excess of $50,000. Investment Trnsctions: Investment trnsctions re ccounted for on trde dte bsis. Relized gins nd losses from the sle of investments re recorded on n identified cost bsis. Repurchse Agreements: The Fund my invest excess csh in repurchse greements whereby the Fund purchses investments, which serve s collterl, with n greement to resell such collterl to the seller t n greed upon price t the mturity dte of the repurchse greement. Investments pledged s collterl for repurchse greements re held in custody until mturity of the repurchse greement. Semi-Annul Report 15

16 Notes to Finncil Sttements, Continued Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) Provisions in the greements require tht the mrket vlue of the collterl is t lest equl to the repurchse vlue in the event of defult. In the event of defult, the Fund hs the right to liquidte the collterl nd pply the proceeds in stisfction of the obligtion. Under certin circumstnces, in the event of defult or bnkruptcy by the other prty to the greement, reliztion nd/or retention of the collterl my be subject to legl proceedings. When-Issued nd Delyed Delivery Trnsctions: The Fund my engge in when-issued or delyed delivery trnsctions. To the extent the Fund engges in such trnsctions, it will do so for the purpose of cquiring portfolio investments consistent with the Fund s investment objectives nd not for the purpose of investment leverge or to speculte on interest rte or mrket chnges. At the time the Fund mkes commitment to purchse n investment on when-issued or delyed delivery bsis, the Fund will record the trnsction nd reflect the vlue in determining its net sset vlue. When effecting such trnsctions, ssets of n mount sufficient to mke pyment for the portfolio investments to be purchsed will be segregted on the Fund s records on the trde dte. Investments purchsed on when-issued or delyed delivery bsis do not ern interest until the settlement dte. Foreign Currency Trnsltion: Portfolio investments nd other ssets nd libilities denominted in foreign currencies re trnslted into U.S. dollrs bsed on the exchnge rte of such currencies ginst the U.S. dollr on the dte of vlution. Purchses nd sles of investments nd income items denominted in foreign currencies re trnslted into U.S. dollrs t the exchnge rte in effect on the trnsction dte. When the Fund purchses or sells foreign investments, it will customrily enter into foreign exchnge contrct to minimize foreign exchnge risk from the trde dte to the settlement dte of such trnsctions. The vlues of such spot contrcts re included in receivble for investments sold nd pyble for investments purchsed on the Sttement of Assets nd Libilities. The Fund does not seprtely report the effect of chnges in foreign exchnge rtes from chnges in mrket prices on investments held. Such chnges re included in net unrelized pprecition (deprecition) from investments. Reported net relized gins nd losses from foreign currency trnsctions rise due to purchses nd sles of foreign currencies, currency gins nd losses relized between the trde nd settlement dtes on investment trnsctions nd the difference between the mounts of dividends, interest, nd foreign withholding txes recorded on the Fund s books, nd the U.S. dollr equivlent of the mounts ctully received or pid. Net chnge in unrelized pprecition (deprecition) on foreign currency trnsltions rise from chnges in the fir vlue of ssets nd libilities, other thn investments t period end, resulting from chnges in exchnge rtes. Gurntees nd Indemnifictions: Under the Trust s orgniztionl documents (nd under seprte greements with the independent Trustees), its officers nd Trustees re provided with n indemnifiction ginst certin libilities rising out of the performnce of their duties to the Fund. In the norml course of business the Trust my lso enter into contrcts with service providers tht contin generl indemnifictions. The Trust s mximum exposure under these rrngements is unknown. However, bsed on experience, the Trust expects the risk of loss to be remote. Use of Estimtes: The preprtion of finncil sttements in conformity with GAAP requires mngement to mke estimtes nd ssumptions tht ffect the reported mounts of ssets nd libilities nd disclosure of contingent ssets nd libilities t the dte of the finncil sttements nd the reported mounts of increses (decreses) in net ssets from opertions during the reporting period. Actul results could differ from those estimtes. Federl Income Txes: It is the policy of the Trust to comply with the provisions of the Internl Revenue Code pplicble to regulted investment compnies nd to distribute to shreholders substntilly ll investment compny txble income including net relized gins on investments (if ny), nd tx exempt income of the Fund. Therefore, no provision for federl income or excise tx is required. The Fund files income tx returns in United Sttes federl nd pplicble stte jurisdictions. The sttute of limittions on the Fund s tx return filings generlly remins open for the three yers following return s filing dte. The Fund hs nlyzed ech uncertin tx position believed to be mteril in the preprtion of the Fund s finncil sttements for the six month period ended Mrch 31, 2018, including open tx yers, to ssess whether it is more likely thn not tht the position would be sustined upon exmintion, bsed on the technicl merits of the position. The Fund hs not identified ny such position for which n sset or libility must be reflected in the Sttement of Assets nd Libilities. At Mrch 31, 2018, informtion on the tx components of cpitl ws s follows: Cost of investments for tx purposes $ 451,910,162 Gross unrelized pprecition on tx bsis 208,127,161 Gross unrelized deprecition on tx bsis (5,909,721) Net unrelized pprecition (deprecition) on investments (tx bsis) $ 202,217, Semi-Annul Report

17 Notes to Finncil Sttements, Continued Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) At Mrch 31, 2018, the Fund hd deferred tx bsis lte-yer ordinry investment losses occurring subsequent to December 31, 2016 through September 30, 2017 of $3,460,783. For tx purposes, such ordinry losses will be recognized in the yer ending September 30, At Mrch 31, 2018, the Fund hd deferred tx bsis lte-yer specified ordinry losses occurring subsequent to October 31, 2016 through September 30, 2017 of $7,876. For tx purposes, such losses will be recognized in the yer ending September 30, At Mrch 31, 2018, the Fund hd cumultive tx bsis cpitl losses of $177,130,558 generted prior to October 1, 2011 which my be crried forwrd to offset future cpitl gins. To the extent such crryforwrds re utilized, cpitl gin distributions my be reduced to the extent provided by regultions. Such cpitl loss crryforwrds expire September 30, Foreign Withholding Txes: The Fund is subject to foreign tx withholding imposed by certin foreign countries in which the Fund my invest. Withholding txes re incurred on certin foreign dividends nd re ccrued t the time the dividend is recognized bsed on pplicble foreign tx lws. The Fund my file withholding tx reclims in certin jurisdictions to recover portion of mounts previously withheld, in view of vrious considertions, including recent decisions rendered by the courts in those nd other jurisdictions. The Fund would expect to record receivble for such reclim bsed on vriety of fctors, including ssessment of jurisdiction s legl obligtion to py reclims, the jurisdiction s dministrtive prctices nd pyment history, nd industry convention. To dte the Fund hs recorded no such receivble becuse there is limited precedent for collecting such prior yer reclims nd the likelihood of collection remins uncertin. Deferred Foreign Cpitl Gin Txes: The Fund is subject to tx imposed on net relized gins of securities of certin foreign countries. The Fund records n estimted deferred tx libility for net unrelized gins on these investments s reflected in the ccompnying finncil sttements. NOTE 3 SECURITY VALUATION Vlution of the Fund s portfolio investment securities is performed in ccordnce with policies nd procedures dopted by nd under the oversight of the Trustees. The Trustees of the Trust hve ppointed the Advisor to ssist the Trustees to obtin mrket vlues for portfolio investments, evlute nd monitor professionl pricing service providers ppointed by the Trustees Audit Committee (the Audit Committee ) to ssist in determining fir vlues for portfolio investments, ssist in clculting fir vlues for portfolio investments in certin circumstnces, nd to perform other functions in connection with the vlution of investments. The Advisor cts through its Vlution nd Pricing Committee (the Committee ) nd other employees of the Advisor. The Committee regulrly reviews its own vlution clcultions, s well s the vlutions, vlution techniques nd services furnished by pricing service providers, considers circumstnces which my require vlution clcultions by the Committee, nd reviews previous vlution clcultions. The Committee reports to the Audit Committee on the Committee s ctivities, the performnce of pricing service providers, nd other mtters relting to vlution of portfolio investments. In those instnces when the Committee ssists in clculting fir vlue for portfolio investment, the Committee seeks to determine the price tht the Fund would resonbly expect to receive upon sle of the investment in n orderly trnsction between mrket prticipnts on the vlution dte. The Committee customrily utilizes quottions from securities broker delers in clculting vlutions, but lso my utilize prices obtined from pricing service providers or other methods pproved by the Audit Committee. Becuse fir vlues clculted by the Committee re estimtes, the clcultion of vlue for n investment my differ from the price tht would be relized by the Fund upon sle of the investment, nd the difference could be mteril to the Fund s finncil sttements. The Committee s clcultion of fir vlue for n investment my lso differ from the prices obtined by other persons (including other mutul funds) for the investment. Vlution of Securities: Securities nd other portfolio investments which re listed or trded on United Sttes securities exchnge re vlued t the lst reported sle price on the vlution dte. Investments listed or trded on n exchnge for which there hs been no sle tht dy re vlued t the men between the lst reported bid nd sked prices on tht vlution dte. Portfolio investments reported by NASDAQ re vlued t the officil closing price on the vlution dte. If n investment is trded on more thn one exchnge, the investment is considered trded on the exchnge tht is normlly the primry mrket for tht investment. Securities nd other portfolio investments which re listed or trded on exchnges outside the United Sttes re vlued t the lst price or the closing price of the investment on the exchnge tht is normlly the primry mrket for the investment, s of the close of the exchnge preceding the Fund s vlution dte. Foreign investments listed or trded on n exchnge for which there hs been no sle tht dy re vlued t the men between the lst reported bid nd sked prices on tht vlution dte. In ny cse when mrket quottion is not redily vilble for portfolio investment ordinrily vlued by mrket quottion, the Committee clcultes fir vlue for the investment using lterntive methods pproved by the Audit Committee. A mrket quottion is not redily vilble when the primry mrket or exchnge for the investment is not open for the entire scheduled dy of trding. Mrket quottions for n investment lso my not be redily vilble if developments fter the most recent close of the investment s primry exchnge or mrket, but prior to the close of business on ny Fund business dy, or n unusul event or significnt period of time occurring since the Semi-Annul Report 17

18 Notes to Finncil Sttements, Continued Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) vilbility of mrket quottion, crete serious question concerning the relibility of the most recent mrket quottion vilble for the investment. In prticulr, on dys when mrket voltility thresholds estblished by the Audit Committee re exceeded, foreign equity investments held by the Fund my be vlued using lterntive methods. The Committee customrily obtins vlutions in these instnces from pricing service providers pproved by the Audit Committee. Pricing service providers ordinrily clculte vlutions using multi-fctor models to djust mrket prices bsed upon vrious inputs, including exchnge dt, depository receipt prices, futures, index dt nd other dt. Debt obligtions held by the Fund which re not listed or trded on exchnges or for which no reported mrket exists re ordinrily vlued t the vlution obtined from pricing service provider pproved by the Audit Committee. In ny cse when pricing service provider fils to provide vlution for debt obligtion held by the Fund, the Committee clcultes fir vlue for the obligtion using lterntive methods under procedures pproved by the Audit Committee. Additionlly, in cses when mngement believes tht vlution obtined from pricing service provider merits review for significnt resons, the Committee decides whether or not to use the vlution clculted by the pricing service provider or to use n lterntive method pproved by the Audit Committee to clculte fir vlue for the obligtion. Quottions for foreign investments expressed in foreign currency mounts re converted to U.S. dollr equivlents using foreign exchnge quottion from third prty service provider t the time of vlution. Foreign investments held by the Fund my be trded on dys nd t times when the Fund is not open for business. Consequently, the vlue of Fund investments my be significntly ffected on dys when shreholders cnnot purchse or sell Fund shres. Vlution Hierrchy: The Fund ctegorizes its investments bsed upon the inputs used in vluing those investments, ccording to three-level hierrchy estblished in guidnce from the FASB. Ctegoriztion of investments using this hierrchy is intended by the FASB to mximize the use of observble inputs in vluing investments nd minimize the use of unobservble inputs by requiring tht the most observble inputs be used when vilble. Observble inputs re those tht mrket prticipnts would use in vluing n investment bsed on vilble mrket informtion. Unobservble inputs re those tht reflect ssumptions bout the informtion mrket prticipnts would use in vluing n investment. An investment s level within the hierrchy is bsed on the lowest level input tht is deemed significnt to the vlution. The methodologies nd inputs used to vlue investments re not necessrily indictions of the risk or liquidity ssocited with those investments. Vrious inputs re used in clculting vlutions for the Fund s investments. These inputs re generlly summrized ccording to the three-level hierrchy below: Level 1: Quoted prices in ctive mrkets for identicl investments. Level 2: Other direct or indirect significnt observble inputs (including quoted prices for similr investments in ctive mrkets nd other observble inputs, such s interest rtes, prepyment rtes, credit risk, etc.). Level 3: Significnt unobservble inputs (including the Committee s own ssumptions in clculting the fir vlues of investments). Vlutions for debt obligtions held by the Fund re typiclly clculted by pricing service providers pproved by the Audit Committee nd re generlly chrcterized s Level 2 within the vlution hierrchy. On dys when mrket voltility thresholds estblished by the Audit Committee re exceeded, foreign securities for which vlutions re obtined from pricing service providers re fir vlued. On these dys, the foreign securities re chrcterized s Level 2 within the vlution hierrchy nd revert to Level 1 fter the threshold is no longer exceeded. In limited number of cses the Committee clcultes fir vlue for investments using broker quottions or other methods pproved by the Audit Committee. When the Committee uses single broker quottion to clculte fir vlue for n investment without other significnt observble inputs, or if fir vlue is clculted using other significnt inputs tht re considered unobservble, the investment is chrcterized s Level 3 within the hierrchy. Other significnt unobservble inputs used to clculte fir vlue in these instnces might include n income-bsed vlution pproch which considers discounted nticipted future csh flows from the investment nd ppliction of discounts due to the nture or durtion of ny restrictions on the disposition of the investment. Vlutions bsed upon the use of inputs from Levels 1, 2 or 3 my not represent the ctul price received upon the disposition of n investment, nd the Fund my receive price tht is lower thn the vlution bsed upon these inputs when it sells the investment. The following tble displys summry of the fir vlue hierrchy mesurements of the Fund s investments s of Mrch 31, In ny instnce when vlution inputs from more thn one level re used to determine the fir vlue of specific investment, the investment is plced in the level of the tble bsed upon the lowest level input tht is significnt in determining the fir vlue of the investment: 18 Semi-Annul Report

19 Notes to Finncil Sttements, Continued Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) FAIR VALUE MEASUREMENTS AT MARCH 31, 2018 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Assets Investments in Securities* Common Stock $ 591,382,167 $ 591,382,167 $ $ Short Term Investment 62,745,435 62,745,435 Totl Investments in Securities $ 654,127,602 $ 654,127,602 $ $ * See Schedule of Investments for summry of the industry exposure s grouped ccording to the Globl Industry Clssifiction Stndrd (GICS), which is n industry txonomy developed by MSCI, Inc. nd Stndrd & Poor s (S&P). In ccordnce with the guidnce prescribed in Accounting Stndrds Updte No , it is the policy of the Fund to recognize trnsfers between levels nd the underlying events which cused the movement. The Fund recognized no trnsfers between levels for the six months ended Mrch 31, 2018, other thn when the Fund exceeded mrket voltility thresholds for foreign equity investments during the period. NOTE 4 INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES Pursunt to n investment dvisory greement, the Advisor serves s the investment dvisor nd performs services for the Fund for which the fees re pyble t the end of ech month. Under the investment dvisory greement, the Fund pys the Advisor mngement fee bsed on the dily net ssets of the Fund t n nnul rte s shown in the following tble: MANAGEMENT FEE SCHEDULE DAILY NET ASSETS FEE RATE Up to $500 million 0.875% Next $500 million Next $500 million Next $500 million Over $2 billion The Fund s effective mngement fee for the six months ended Mrch 31, 2018 ws 0.863% of the Fund s verge net ssets. The Trust hs entered into dministrtive service greements with the Advisor, whereby the Advisor will perform certin dministrtive services relted to ech clss of the Fund s shres. Until Jnury 31, 2018, the fees were pyble t n nnul rte of up to of 1% per nnum of the verge dily net ssets ttributble to ech clss of shres. As of Februry 1, 2018, the fees re computed s n nnul percentge of the ggregte verge dily net ssets of ll shres clsses of ll Funds in the Trust s follows: ADMINISTRATION FEE SCHEDULE DAILY NET ASSETS FEE RATE Up to $20 billion 0.100% $20 billion to $40 billion $40 billion to $60 billion Over $60 billion The ggregte fee mount is llocted on dily bsis to ech Fund bsed on net ssets nd subsequently llocted to ech clss of shres of the Fund. Totl dministrtive service fees incurred by ech clss of shres of the Fund for the six months ended Mrch 31, 2018, re set forth in the Sttement of Opertions. The Trust hs n underwriting greement with Thornburg Securities Corportion (the Distributor ), n ffilite of the Advisor, which cts s the distributor of the Fund s shres. For the six months ended Mrch 31, 2018, the Distributor hs dvised the Fund tht it erned net commissions ggregting $5,113 from the sle of Clss A shres, nd collected contingent deferred sles chrges ggregting $207 from redemptions of Clss C shres of the Fund. Pursunt to service pln under Rule 12b-1 of the Investment Compny Act of 1940, the Fund my py to the Distributor or securities delers nd other finncil institutions t the Distributor s direction n mount not to exceed.25 of 1% per nnum of the verge dily net ssets ttributble to Clss A, Clss C, Clss I, Clss R3, Clss R4, nd Clss R5 shres of the Fund to obtin vrious shreholder nd distribution relted services. For the six months ended Mrch 31, 2018, there were no 12b-1 service pln fees chrged for Clss I or Semi-Annul Report 19

20 Notes to Finncil Sttements, Continued Thornburg Core Growth Fund Mrch 31, 2018 (Unudited) Clss R5 shres. The Advisor nd the Distributor ech my py out of its own resources dditionl expenses for distribution of the Fund s shres nd shreholder services. The Trust hs lso dopted distribution plns pursunt to Rule 12b-1, pplicble only to the Fund s Clss C nd Clss R3 shres, under which the Fund compenstes the Distributor for services in promoting the sle of Clss C nd Clss R3 shres of the Fund t n nnul rte of up to.75 of 1% per nnum of the verge dily net ssets ttributble to Clss C shres, nd n nnul rte of up to.25 of 1% per nnum of the verge dily net ssets ttributble to Clss R3 shres. Totl fees incurred by ech clss of shres of the Fund under their respective service nd distribution plns for the six months ended Mrch 31, 2018, re set forth in the Sttement of Opertions. The Advisor nd Distributor hve contrctully greed to wive fees nd reimburse expenses incurred by the Fund so tht ctul expenses of certin shre clsses do not exceed levels s specified in ech Fund s most recent prospectus. The greement my be terminted by the Fund t ny time, but my not be terminted by the Advisor or Distributor before Februry 1, 2019, unless the Advisor ceses to be the investment dvisor to the Fund or the Distributor ceses to be the distributor of the Fund prior to tht dte. The Advisor nd Distributor my recoup mounts wived or reimbursed during the fiscl yer if expenses fll below the contrctul limit during tht yer. For the six months ended Mrch 31, 2018, the Advisor contrctully reimbursed certin clss specific expenses, dministrtive fees, nd distribution fees of $63,156 for Clss I shres, $74,553 for Clss R3 shres, $14,238 for Clss R4 shres, nd $51,954 for Clss R5 shres. Certin officers nd Trustees of the Trust re lso officers or directors of the Advisor nd Distributor. The compenstion of the independent Trustees is borne by the Trust. The Trust lso pys portion of the Chief Complince Officer s compenstion. These mounts re reflected s Trustee nd officer fees in the Sttement of Opertions. The percentge of direct investments in the Fund held by the Trustees, officers of the Trust, nd the Advisor is pproximtely 10.60%. The Fund my purchse or sell securities from, or to n ffilited fund, provided the ffilition is due solely to hving common investment dvisor, common officers, or common trustees, nd provided tht ll such trnsctions will comply with Rule 17-7 under the 1940 Act. For the six months ended Mrch 31, 2018, the Fund hd no such trnsctions with ffilited funds. Shown below re holdings of voting securities of ech portfolio compny which is considered "ffilited" to the Fund under the Investment Compny Act of 1940, including compnies for which the Fund s holding represented 5% or more of the compny s voting securities, nd series of the Thornburg Investment Trust in which the Fund invested for csh mngement purposes during the period: FUND MARKET VALUE 9/30/17 PURCHASES AT COST SALES PROCEEDS REALIZED GAIN (LOSS) CHANGE IN UNREALIZED APPR./(DEPR.) MARKET VALUE 3/31/18 DIVIDEND INCOME ROC ADJUSTMENT Thornburg Cpitl Mngement Fund $15,059,338 $146,607,327 $(98,921,230) $- $- $62,745,435 $269,138 $- NOTE 5 SHARES OF BENEFICIAL INTEREST At Mrch 31, 2018, there were n unlimited number of shres with no pr vlue of beneficil interest uthorized. Trnsctions in shres of beneficil interest were s follows: SIX MONTHS ENDED MARCH 31, 2018 (UNAUDITED) YEAR ENDED SEPTEMBER 30, 2017 (AUDITED) SHARES AMOUNT SHARES AMOUNT Clss A Shres Shres sold 222,663 $ 7,679, ,036 $ 16,129,664 Shres issued to shreholders in reinvestment of dividends Shres repurchsed (491,895) (16,977,403) (1,824,517) (54,290,458) Net decrese (269,232) $ (9,298,116) (1,296,481) $ (38,160,794) 20 Semi-Annul Report