Mutual Fund Tax Information

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Herbert Harvey
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1 2008 Mutual Fund Tax Information We have provided this information as a service to our shareholders. Thornburg Investment Management cannot and does not give tax or accounting advice. If you have further questions regarding the completion of your tax return, we suggest you discuss them with your own tax advisor. Thornburg Value Fund Thornburg International Value Fund Thornburg Core Growth Fund Thornburg Investment Income Builder Fund Thornburg Global Opportunities Fund Thornburg International Growth Fund Thornburg Strategic Income Fund Thornburg Limited Term Municipal Fund Thornburg Intermediate Municipal Fund Thornburg California Limited Term Municipal Fund Thornburg New Mexico Intermediate Municipal Fund Thornburg Limited Term U.S. Government Fund Thornburg Limited Term Income Fund Thornburg New York Intermediate Municipal Fund Reich & Tang Daily Income Fund # TH East Marcy Street Santa Fe, New Mexico IMPORTANT TAX INFORMATION. KEEP FOR YOUR RECORDS.

2 Thornburg Value Fund The Thornburg Value Fund ( the Fund ) did not declare capital gain distributions during For the 2008 calendar year, % of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) qualify as qualified dividend income ( QDI ) (box 1b of Form 1099-DIV) for the reduced tax rate under the Jobs and Growth Relief Reconciliation Act of % of the ordinary income distributions paid by the Fund for 2008 qualified for the corporate dividends received deduction. Thornburg International Value Fund The Thornburg International Value Fund ( the Fund ) did not declare capital gain distributions during For the 2008 calendar year, % of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) qualify as qualified dividend income ( QDI ) (box 1b of Form 1099-DIV) for the reduced tax rate under the Jobs and Growth Relief Reconciliation Act of % of the ordinary income distributions paid by the Fund for 2008 qualified for the corporate dividends received deduction. Foreign Taxes: For the 2008 calendar year, the Fund has elected to pass-through its foreign withholding taxes to its shareholders. Your amount of foreign withholding taxes incurred by the Fund has been reported to you in box 6 on your Form 1099-DIV. Box 6 reports foreign income taxes paid on income derived from Fund investments in foreign securities. Federal tax rules generally permit U.S. taxpayers to either deduct or take a credit against their U.S. tax liability. For the 2008 calendar year, 93.23% of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) is deemed to be foreign source income. The receipt of QDI may result in special rules in determining a taxpayer s foreign tax credit limitation, as prescribed in Section 904 of the Internal Revenue Code. Thornburg Core Growth Fund The Thornburg Core Growth Fund did not declare ordinary income or capital gain distributions during Thornburg Investment Income Builder Fund The Thornburg Investment Income Builder Fund ( the Fund ) did not declare capital gain distributions during For the 2008 calendar year, 85.41% of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) qualify as qualified dividend income ( QDI ) (box 1b of Form 1099-DIV) for the reduced tax rate under the Jobs and Growth Relief Reconciliation Act of % of the ordinary income distributions paid by the Fund for 2008 qualified for the corporate dividends received deduction. 2

3 Thornburg Global Opportunities Fund The Thornburg Global Opportunities Fund ( the Fund ) did not declare capital gain distributions during For the 2008 calendar year, 75.33% of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) qualify as qualified dividend income ( QDI ) (box 1b of Form 1099-DIV) for the reduced tax rate under the Jobs and Growth Relief Reconciliation Act of % of the ordinary income distributions paid by the Fund for 2008 qualified for the corporate dividends received deduction. Foreign Taxes: For the calendar year 2008, the Fund has elected to pass-through its foreign withholding taxes to its shareholders. Your amount of foreign withholding taxes incurred by the Fund has been reported to you in box 6 on your Form 1099-DIV. Box 6 reports foreign income taxes paid on income derived from Fund investments in foreign securities. Federal tax rules generally permit U.S. taxpayers to either deduct or take a credit against their U.S. tax liability. For the calendar year 2008, 55.25% of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) is deemed to be foreign source income. The receipt of QDI may result in special rules in determining a taxpayer s foreign tax credit limitation, as prescribed in Section 904 of the Internal Revenue Code. Thornburg International Growth Fund The Thornburg International Growth Fund ( the Fund ) did not declare capital gain distributions during For the 2008 calendar year, % of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) qualify as qualified dividend income ( QDI ) (box 1b of Form 1099-DIV) for the reduced tax rate under the Jobs and Growth Relief Reconciliation Act of % of the ordinary income distributions paid by the Fund for 2008 qualified for the corporate dividends received deduction. Foreign Taxes: For the 2008 calendar year, the Fund has elected to pass-through its foreign withholding taxes to its shareholders. Your amount of foreign withholding taxes incurred by the Fund has been reported to you in box 6 on your Form 1099-DIV. Box 6 reports foreign income taxes paid on income derived from Fund investments in foreign securities. Federal tax rules generally permit U.S. taxpayers to either deduct or take a credit against their U.S. tax liability. For the 2008 calendar year, 74.38% of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) is deemed to be foreign source income. The receipt of QDI may result in special rules in determining a taxpayer s foreign tax credit limitation, as prescribed in Section 904 of the Internal Revenue Code. Thornburg Strategic Income Fund The Thornburg Strategic Income Fund ( the Fund ) did not declare capital gain distributions during For the 2008 calendar year, 12.67% of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) qualify as qualified dividend income ( QDI ) (box 1b of Form 1099-DIV) for the reduced tax rate under the Jobs and Growth Relief Reconciliation Act of % of the ordinary income distributions paid by the Fund for 2008 qualified for the corporate dividends received deduction. For the 2008 calendar year, 1.65% of the dividends paid from tax basis net ordinary income (box 1a of Form 1099-DIV) were derived from interest on certain direct U.S. government obligations, which is generally treated as exempt from taxable income for certain states. 3

4 Thornburg Limited Term Municipal Fund State-by-State Breakdown On the next page is a table showing the percentage breakdown by state or U.S. possession of the income earned by Thornburg Limited Term Municipal Fund (the Fund ) for those states or possessions in which the Fund had investments at any time during To the best of our knowledge, none of the income earned by the Fund is subject to the alternative minimum tax applicable to individuals; therefore, all dividends paid to an individual during calendar year 2008 are exempt from federal income tax. Reporting Requirements for your 2008 Federal Return: Individuals Your dividends from the Fund will not be subject to federal income tax, but must be reported on your 2008 return. Remember: State and local taxes vary, and we suggest that you contact your tax advisor for information on those taxes. Special Requirements for Corporations Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, will be included in the corporation s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation. 4

5 Thornburg Limited Term Municipal Fund (Continued) The following listing represents the percentage breakdown by state or U.S. possession of the income paid by the Fund for those states or possessions in which the Fund had investments at any time during State and local taxes vary, and we suggest that you contact your tax advisor with respect to these taxes. Please retain this notice for your records. State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average 2008 Alabama 0.27% 0.25% 0.46% 0.86% 0.85% 0.83% 1.11% 1.17% 1.11% 1.09% 1.08% 1.07% 0.85% Alaska 0.71% 0.70% 0.67% 0.91% 0.82% 0.69% 0.77% 0.73% 0.73% 0.60% 0.60% 0.59% 0.71% Arizona 1.09% 1.03% 0.99% 1.03% 1.01% 1.00% 0.91% 0.88% 1.09% 1.08% 2.15% 2.80% 1.26% Arkansas 0.41% 0.40% 0.38% 0.40% 0.39% 0.39% 0.38% 0.30% 0.31% 0.30% 0.30% 0.30% 0.36% California 2.94% 2.73% 2.87% 3.00% 2.75% 2.87% 3.55% 3.15% 2.91% 3.04% 2.53% 2.46% 2.90% Colorado 4.31% 4.19% 4.08% 4.20% 4.13% 4.03% 3.88% 3.74% 3.60% 3.43% 3.38% 3.02% 3.83% Connecticut 0.41% 0.19% 0.17% 0.17% 0.17% 0.26% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.11% Delaware 0.57% 0.56% 0.54% 0.56% 0.55% 0.54% 0.53% 0.51% 0.49% 0.48% 0.48% 0.47% 0.52% District of Columbia 2.24% 2.14% 2.56% 2.70% 2.68% 2.60% 2.50% 2.23% 2.17% 2.14% 2.11% 2.10% 2.35% Florida 8.15% 8.00% 8.27% 8.55% 8.81% 8.88% 8.69% 9.36% 9.17% 9.40% 9.85% 9.72% 8.90% Georgia 1.54% 1.50% 1.76% 2.57% 3.25% 3.17% 3.12% 3.24% 3.21% 3.37% 3.11% 3.07% 2.74% Guam 0.09% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% 0.07% 0.07% 0.07% 0.07% 0.08% Hawaii 0.17% 0.17% 0.16% 0.17% 0.17% 0.16% 0.16% 0.16% 0.15% 0.15% 0.14% 0.14% 0.16% Idaho 0.33% 0.32% 0.31% 0.32% 0.32% 0.31% 0.30% 0.29% 0.28% 0.28% 0.27% 0.27% 0.30% Illinois 10.33% 10.63% 13.04% 10.70% 10.79% 11.28% 11.40% 11.01% 10.25% 9.71% 9.84% 9.73% 10.73% Indiana 5.06% 4.86% 4.80% 5.11% 5.05% 5.06% 4.87% 4.82% 4.72% 4.66% 4.63% 4.53% 4.85% Iowa 2.32% 2.10% 2.03% 2.10% 2.06% 2.03% 1.99% 1.92% 1.84% 1.81% 1.79% 1.66% 1.97% Kansas 0.00% 0.00% 0.67% 1.09% 1.08% 1.06% 1.04% 1.00% 0.96% 1.08% 1.16% 1.16% 0.86% Kentucky 1.70% 1.65% 1.61% 1.67% 1.65% 1.61% 1.58% 1.53% 1.46% 1.44% 1.42% 1.42% 1.56% Louisiana 2.92% 2.63% 2.70% 2.93% 2.88% 2.83% 2.79% 2.70% 2.91% 2.76% 2.68% 3.31% 2.84% Maine 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Maryland 0.00% 0.12% 0.19% 0.20% 0.19% 0.24% 0.46% 0.47% 0.35% 0.32% 0.31% 0.29% 0.26% Massachusetts 3.33% 3.25% 3.19% 3.27% 3.25% 3.08% 2.20% 2.05% 1.96% 1.89% 1.11% 1.09% 2.47% Michigan 2.49% 5.88% 5.77% 3.15% 2.91% 2.95% 3.22% 3.18% 3.18% 3.52% 4.18% 4.77% 3.77% Minnesota 1.15% 1.11% 1.09% 1.12% 1.11% 1.09% 1.06% 1.03% 0.99% 0.97% 0.96% 0.95% 1.05% Mississippi 0.67% 0.25% 0.25% 0.25% 0.25% 0.25% 0.24% 0.23% 0.22% 0.22% 0.22% 0.22% 0.27% Missouri 0.32% 0.37% 0.21% 0.21% 0.21% 0.21% 0.20% 0.20% 0.24% 0.30% 0.28% 0.28% 0.25% Montana 1.75% 1.70% 1.66% 1.72% 1.69% 1.66% 1.63% 1.57% 1.51% 1.48% 1.47% 1.35% 1.60% Nebraska 0.78% 0.76% 0.74% 0.76% 0.75% 0.74% 0.72% 0.70% 0.67% 0.66% 0.65% 0.64% 0.71% Nevada 1.28% 1.13% 1.04% 1.06% 1.06% 0.88% 1.16% 0.91% 1.17% 1.51% 0.93% 0.98% 1.09% New Hampshire 1.15% 1.03% 0.88% 0.91% 0.89% 0.88% 0.86% 0.83% 0.80% 0.78% 0.78% 0.77% 0.88% New Jersey 2.31% 2.17% 2.08% 2.16% 2.11% 2.09% 2.03% 1.96% 1.98% 1.88% 1.89% 1.86% 2.04% New Mexico 0.70% 1.11% 0.62% 0.64% 0.64% 0.70% 0.88% 0.90% 1.76% 0.94% 0.91% 1.03% 0.90% New York 4.71% 4.38% 4.23% 4.40% 4.30% 4.38% 4.52% 4.20% 4.09% 4.76% 4.48% 4.30% 4.40% North Carolina 2.52% 2.44% 2.38% 2.47% 2.62% 2.97% 3.03% 2.92% 3.00% 3.56% 3.54% 3.51% 2.91% North Dakota 0.14% 0.14% 0.13% 0.14% 0.14% 0.14% 0.13% 0.13% 0.12% 0.15% 0.23% 0.23% 0.15% Ohio 2.67% 2.60% 2.53% 2.64% 2.76% 2.70% 2.64% 2.55% 2.36% 2.32% 2.22% 1.91% 2.49% Oklahoma 1.17% 1.10% 1.02% 1.13% 1.19% 1.17% 1.14% 1.33% 1.32% 1.29% 1.26% 1.18% 1.19% Oregon 0.48% 0.47% 0.45% 0.47% 0.17% 0.22% 0.51% 0.20% 0.15% 0.15% 0.08% 0.07% 0.29% Pennsylvania 1.91% 1.87% 1.66% 1.70% 1.62% 1.74% 1.91% 1.96% 2.25% 2.31% 2.20% 2.15% 1.94% Puerto Rico 0.07% 0.07% 0.06% 0.07% 0.07% 0.07% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.03% Rhode Island 0.73% 0.71% 0.69% 0.72% 0.70% 0.69% 0.63% 0.63% 0.60% 0.59% 0.59% 0.58% 0.66% South Carolina 1.28% 1.25% 1.22% 1.26% 1.24% 1.22% 1.45% 1.73% 1.66% 1.63% 1.62% 1.60% 1.43% South Dakota 0.11% 0.11% 0.11% 0.11% 0.11% 0.11% 0.11% 0.10% 0.10% 0.10% 0.09% 0.09% 0.10% Tennessee 1.92% 2.04% 2.07% 2.14% 2.10% 2.04% 1.86% 1.80% 1.72% 1.69% 1.58% 1.56% 1.88% Texas 15.29% 14.17% 12.44% 12.89% 12.89% 12.71% 13.06% 13.78% 13.96% 13.71% 14.24% 14.08% 13.60% US Virgin Islands 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Utah 0.73% 0.71% 0.63% 0.64% 0.63% 0.62% 0.61% 0.59% 0.57% 0.56% 0.55% 0.55% 0.62% Vermont 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Virginia 1.03% 0.99% 0.97% 1.01% 0.99% 0.97% 0.95% 0.92% 0.88% 0.77% 0.76% 0.75% 0.92% Washington 2.63% 2.51% 2.49% 2.63% 2.91% 2.83% 2.20% 2.23% 2.75% 2.72% 2.53% 2.58% 2.58% West Virginia 0.17% 0.16% 0.16% 0.17% 0.17% 0.16% 0.16% 0.16% 0.22% 0.36% 0.81% 0.81% 0.29% Wisconsin 0.42% 0.84% 0.46% 0.40% 0.39% 0.38% 0.37% 1.53% 1.62% 1.59% 1.57% 1.56% 0.93% Wyoming 0.53% 0.43% 0.43% 0.44% 0.45% 0.43% 0.41% 0.39% 0.37% 0.38% 0.37% 0.37% 0.42% Non State Tax Exempt 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total % % % % % % % % % % % % % 5

6 Thornburg Intermediate Municipal Fund State-by-State Breakdown On the next page is a table showing the percentage breakdown by state or U.S. possession of the income earned by Thornburg Intermediate Municipal Fund, (the Fund ) for those states or possessions in which the Fund had investments at any time during Reporting Requirements for your 2008 Federal Return: Individuals Your dividends from the Fund must be reported on your 2008 return. These dividends are not subject to regular federal income tax. A small portion of this income, as shown below, may be treated as a preference item for the purpose of the alternative minimum tax on certain individuals and on corporations. Shareholders are advised to consult their own tax advisors as to the extent and effect of such treatment. Average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 Municipal Income 93.07% 92.91% 93.85% 92.92% 92.41% 92.60% 93.05% 93.26% 93.78% 93.72% 93.58% 93.63% 93.23% Municipal AMT Preference Income 6.93% 7.09% 6.15% 7.08% 7.59% 7.40% 6.95% 6.74% 6.22% 6.28% 6.42% 6.37% 6.77% Total Municipal Income % % % % % % % % % % % % % Remember: State and local taxes vary, and we suggest that you contact your tax advisor for information on those taxes. Special Requirements for Corporations Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, will be included in the corporation s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation. 6

7 Thornburg Intermediate Municipal Fund (Continued) The following listing represents the percentage breakdown by state or U.S. possession of the income paid by the Fund for those states or possessions in which the Fund had investments at any time during State and local taxes vary, and we suggest that you contact your tax advisor with respect to these taxes. Please retain this notice for your records. State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average 2008 Alabama 0.47% 0.46% 0.45% 0.46% 0.46% 0.42% 0.60% 0.68% 0.68% 0.72% 0.73% 0.73% 0.57% Alaska 0.53% 0.52% 0.50% 0.79% 0.86% 0.51% 0.49% 0.48% 0.48% 0.50% 0.51% 0.51% 0.56% Arizona 2.08% 1.97% 1.17% 1.20% 1.21% 1.18% 1.33% 1.50% 1.49% 1.56% 2.35% 3.02% 1.67% Arkansas 0.49% 0.48% 0.46% 0.47% 0.48% 0.47% 0.45% 0.44% 0.43% 0.24% 0.25% 0.18% 0.40% California 2.27% 2.19% 3.02% 3.26% 3.12% 3.32% 3.18% 3.27% 3.25% 3.55% 3.20% 3.41% 3.09% Colorado 4.85% 4.92% 4.49% 5.00% 4.79% 5.36% 6.80% 6.93% 5.74% 5.96% 6.12% 6.09% 5.59% Connecticut 0.68% 0.04% 0.00% 0.00% 0.00% 0.02% 0.00% 0.00% 0.03% 0.00% 0.00% 0.00% 0.06% Delaware 0.28% 0.27% 0.27% 0.27% 0.28% 0.27% 0.26% 0.26% 0.26% 0.27% 0.27% 0.27% 0.27% District of Columbia 2.14% 2.11% 2.05% 2.09% 2.12% 2.06% 2.00% 1.90% 1.85% 1.93% 1.99% 1.98% 2.02% Florida 9.85% 9.64% 9.23% 10.75% 10.75% 10.97% 11.22% 10.91% 11.04% 11.23% 11.29% 11.38% 10.69% Georgia 0.97% 0.98% 1.11% 1.13% 1.14% 1.12% 1.08% 1.06% 1.06% 1.10% 1.14% 1.13% 1.09% Guam 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Hawaii 0.44% 0.43% 0.42% 0.43% 0.43% 0.42% 0.41% 0.40% 0.40% 0.42% 0.43% 0.43% 0.42% Idaho 0.38% 0.37% 0.36% 0.37% 0.37% 0.36% 0.35% 0.35% 0.35% 0.36% 0.37% 0.37% 0.36% Illinois 9.28% 9.75% 10.61% 9.92% 7.85% 8.48% 8.41% 8.24% 7.95% 8.09% 7.90% 8.86% 8.78% Indiana 6.54% 6.28% 6.04% 6.12% 6.75% 7.00% 6.86% 6.78% 6.43% 6.37% 6.42% 6.28% 6.49% Iowa 1.97% 1.93% 1.89% 1.92% 1.94% 1.89% 1.80% 1.77% 1.76% 1.84% 1.89% 1.89% 1.87% Kansas 1.47% 1.44% 1.71% 1.92% 1.94% 1.89% 1.84% 1.80% 1.80% 1.61% 1.44% 1.44% 1.69% Kentucky 1.01% 0.99% 1.17% 1.23% 1.26% 1.22% 1.09% 1.06% 1.34% 1.44% 1.21% 1.18% 1.18% Louisiana 2.50% 2.45% 2.40% 2.46% 2.53% 2.48% 2.46% 2.32% 2.43% 2.54% 2.61% 2.31% 2.46% Maine 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Maryland 0.00% 0.00% 0.00% 0.00% 0.00% 0.03% 0.16% 0.16% 0.06% 0.00% 0.00% 0.00% 0.03% Massachusetts 0.31% 0.33% 0.30% 0.31% 0.31% 0.30% 0.29% 0.29% 0.27% 0.26% 0.27% 0.26% 0.29% Michigan 2.36% 4.97% 6.08% 3.19% 3.30% 3.20% 3.12% 3.06% 3.04% 3.20% 3.28% 3.22% 3.50% Minnesota 0.73% 0.72% 0.70% 0.71% 0.72% 0.70% 0.68% 0.67% 0.67% 0.70% 0.72% 0.71% 0.70% Mississippi 1.96% 1.92% 1.88% 1.91% 1.94% 1.89% 1.83% 1.80% 1.79% 1.87% 1.93% 1.92% 1.89% Missouri 1.47% 1.56% 1.72% 1.75% 1.78% 1.73% 1.68% 1.65% 1.59% 1.51% 1.43% 1.13% 1.58% Montana 0.25% 0.25% 0.24% 0.25% 0.27% 0.29% 0.28% 0.28% 0.28% 0.25% 0.02% 0.00% 0.22% Nebraska 0.17% 0.17% 0.16% 0.37% 0.39% 0.38% 0.72% 0.71% 0.61% 0.47% 0.38% 0.38% 0.41% Nevada 1.04% 0.88% 0.88% 0.88% 0.91% 0.87% 1.04% 0.85% 0.83% 0.89% 0.90% 1.02% 0.92% New Hampshire 1.76% 1.68% 1.69% 1.69% 1.74% 1.67% 1.66% 1.63% 1.60% 1.70% 1.73% 1.74% 1.69% New Jersey 0.27% 0.26% 0.26% 0.26% 0.26% 0.26% 0.25% 0.25% 0.10% 0.05% 0.05% 0.04% 0.19% New Mexico 0.99% 0.83% 0.81% 0.83% 0.88% 0.86% 0.98% 0.98% 1.38% 0.71% 0.46% 0.37% 0.84% New York 1.32% 0.83% 0.74% 0.76% 0.76% 0.75% 0.77% 0.73% 0.66% 0.75% 0.71% 0.58% 0.78% North Carolina 1.05% 1.00% 0.98% 1.00% 1.01% 0.98% 0.95% 0.93% 0.86% 0.71% 0.32% 0.19% 0.83% North Dakota 0.42% 0.41% 0.40% 0.41% 0.42% 0.40% 0.36% 0.20% 0.17% 0.17% 0.18% 0.18% 0.31% Ohio 2.67% 2.56% 2.42% 2.41% 3.09% 2.90% 2.81% 2.75% 2.75% 2.86% 2.61% 2.13% 2.66% Oklahoma 2.31% 2.22% 2.21% 2.23% 2.28% 2.20% 1.94% 1.81% 2.07% 2.13% 2.17% 2.18% 2.15% Oregon 0.48% 0.47% 0.46% 0.47% 0.47% 0.46% 0.45% 0.44% 0.44% 0.46% 0.47% 0.47% 0.46% Pennsylvania 1.99% 1.93% 1.91% 1.93% 1.68% 1.62% 1.59% 1.56% 1.54% 1.56% 1.57% 1.57% 1.70% Puerto Rico 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Rhode Island 0.64% 0.63% 0.62% 0.63% 0.64% 0.62% 0.60% 0.59% 0.59% 0.61% 0.63% 0.63% 0.62% South Carolina 3.81% 3.74% 3.65% 3.10% 3.14% 3.06% 2.97% 2.96% 3.38% 3.52% 3.62% 3.60% 3.38% South Dakota 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Tennessee 2.24% 2.19% 2.14% 2.18% 2.21% 2.15% 2.09% 2.05% 2.04% 2.13% 2.19% 2.18% 2.15% Texas 16.09% 15.48% 15.41% 15.49% 15.88% 15.48% 14.97% 15.59% 15.82% 14.59% 14.94% 15.03% 15.40% US Virgin Islands 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Utah 0.61% 0.52% 0.40% 0.41% 0.41% 0.40% 0.38% 0.49% 0.59% 0.62% 0.54% 0.52% 0.49% Vermont 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Virginia 2.40% 2.86% 2.30% 2.69% 2.73% 2.66% 2.42% 2.23% 1.56% 1.07% 1.09% 1.09% 2.09% Washington 3.52% 3.44% 3.38% 3.42% 3.55% 3.72% 3.50% 3.59% 4.73% 5.58% 5.72% 5.53% 4.14% West Virginia 0.27% 0.27% 0.26% 0.27% 0.27% 0.26% 0.25% 0.25% 0.25% 0.26% 0.27% 0.27% 0.26% Wisconsin 0.67% 0.66% 0.65% 0.66% 0.67% 0.65% 0.63% 1.35% 1.56% 1.64% 1.68% 1.60% 1.04% Wyoming 0.00% 0.00% 0.00% 0.00% 0.01% 0.07% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.01% Non State Tax Exempt 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total % % % % % % % % % % % % % 7

8 Thornburg California Limited Term Municipal Fund All income earned by Thornburg California Limited Term Municipal Fund (the Fund ) during 2008 was based on investments in municipal obligations of political subdivisions located in the state of California, or on investments in obligations of U.S. territories and possessions which bear interest exempt from taxation by the state of California. Generally speaking, distributions made by the Fund to individuals are not subject to federal income taxes, but they must be reported on your 2008 federal income tax return. However, a small portion of this income, as shown below, may be treated as a preference item for the purposes of the alternative minimum tax on certain individuals and on corporations. Shareholders are advised to consult their own tax advisors as to the extent and effect of such treatment. Average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 Municipal Income 90.45% 90.47% 90.56% 90.09% 88.37% 87.75% 88.59% 91.96% 93.02% 92.90% 92.59% 92.73% 90.79% Municipal AMT Preference Income 9.55% 9.53% 9.44% 9.91% 11.63% 12.25% 11.41% 8.04% 6.98% 7.10% 7.41% 7.27% 9.21% Total Municipal Income % % % % % % % % % % % % % Special Requirements for Corporations Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, will be included in such corporation s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation. Thornburg New Mexico Intermediate Municipal Fund All income earned by Thornburg New Mexico Intermediate Municipal Fund ( the Fund ) during 2008 was based on investments in municipal obligations of political subdivisions located in the state of New Mexico, or investments in obligations of U.S. territories and possessions which bear interest exempt from taxation by the state of New Mexico. Generally speaking, distributions made by the Fund to individuals are not subject to federal income taxes, but they must be reported on your 2008 federal income tax return. However, a small portion of this income, as shown below, may be treated as a preference item for the purposes of the alternative minimum tax on certain individuals and on corporations. Shareholders are advised to consult their own tax advisors as to the extent and effect of such treatment. Average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 Municipal Income 92.79% 93.56% 93.96% 93.81% 93.76% 91.29% 91.06% 91.32% 91.60% 91.49% 91.48% 91.66% 92.32% Municipal AMT Preference Income 7.21% 6.44% 6.04% 6.19% 6.24% 8.71% 8.94% 8.68% 8.40% 8.51% 8.52% 8.34% 7.68% Total Municipal Income % % % % % % % % % % % % % Special Requirements for Corporations Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, will be included in such corporation s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation. 8

9 Thornburg Limited Term U.S. Government Fund Listed below is a month-by-month percentage breakdown of sources of interest income earned by Thornburg Limited Term U.S. Government Fund (the Fund ) in Pension fund and IRA accounts should have no federal or state taxes due on these distributions. For accounts that are subject to federal income taxes on their income from the Fund, some states and/or localities do not require you to pay state or local in-come tax on income derived from certain federal agency bonds. Please consult your tax advisor as to the extent and effect of such tax treatment in your state of residence. DIRECT U.S. OBLIGATIONS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average 2008 U.S. Treasury 35.86% 33.08% 33.76% 29.90% 28.98% 27.62% 27.69% 25.69% 23.87% 28.78% 35.64% 33.77% 30.39% Federal Home Loan Bank 10.48% 7.32% 6.06% 7.96% 8.97% 7.43% 8.32% 6.08% 6.09% 3.84% 3.76% 4.74% 6.75% Federal Farm Credit Banks 2.28% 2.26% 2.14% 2.13% 2.04% 2.08% 1.91% 1.16% 0.74% 0.94% 0.91% 0.83% 1.62% Tennessee Valley Authority 2.17% 2.07% 2.05% 2.00% 1.96% 1.95% 1.87% 1.75% 1.71% 1.46% 1.29% 1.29% 1.80% Sub-total 50.79% 44.73% 44.01% 41.99% 41.95% 39.08% 39.79% 34.68% 32.41% 35.02% 41.61% 40.63% 40.56% INDIRECT U.S. OBLIGATIONS Federal Home Loan Mortgage Corporation 21.40% 26.11% 27.06% 30.24% 31.00% 33.62% 33.97% 42.26% 41.09% 39.75% 36.18% 39.20% 33.49% Federal National Mortgage Association 20.35% 22.00% 21.94% 20.97% 20.48% 20.78% 20.00% 17.75% 19.30% 19.17% 16.82% 14.91% 19.54% Government National Mortgage Association 0.48% 0.43% 0.40% 0.36% 0.32% 0.30% 0.26% 0.22% 0.20% 0.17% 0.14% 0.13% 0.28% Other Government Agencies 6.98% 6.73% 6.60% 6.45% 6.25% 6.22% 5.97% 5.09% 7.01% 5.89% 5.26% 5.13% 6.13% Sub-total 49.21% 55.27% 55.99% 58.01% 58.05% 60.92% 60.21% 65.32% 67.59% 64.98% 58.39% 59.37% 59.44% Total % % % % % % % % % % % % % 9

10 Thornburg Limited Term Income Fund Listed below is a month-by-month percentage breakdown of sources of interest income earned by Thornburg Limited Term Income Fund (the Fund ) in Pension fund and IRA accounts should have no federal or state taxes due on these distributions. For accounts that are subject to federal income taxes on their income from the Fund, some states and/or localities do not require you to pay state or local income tax on income derived from certain federal agency bonds or taxable or tax-free municipal bonds. Please consult your tax advisor as to the extent and effect of such tax treatment in your state of residence. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average 2008 Corporate Securities 69.70% 71.50% 71.41% 71.17% 71.45% 71.04% 72.06% 74.40% 73.72% 74.30% 79.37% 81.57% 73.47% Municipal Bond Income 19.34% 18.80% 18.82% 19.41% 19.74% 19.80% 19.64% 17.20% 17.27% 18.33% 14.28% 13.04% 17.97% Yankee Bonds 0.26% 0.45% 0.46% 0.37% 0.36% 0.35% 0.35% 0.33% 0.32% 0.02% 0.15% 0.16% 0.30% DIRECT U.S. OBLIGATIONS U.S. Treasury 2.80% 2.31% 2.44% 2.34% 1.66% 1.45% 1.46% 1.38% 0.88% 0.73% 0.71% 0.75% 1.58% Federal Home Loan Bank 1.47% 1.41% 1.26% 1.23% 1.27% 1.23% 1.26% 1.38% 1.66% 0.58% 0.06% 0.05% 1.07% Sub-total 4.27% 3.72% 3.70% 3.57% 2.93% 2.68% 2.72% 2.76% 2.54% 1.31% 0.77% 0.80% 2.65% INDIRECT U.S. OBLIGATIONS Federal Home Loan Mortgage Corporation 1.15% 1.12% 1.10% 1.08% 1.08% 1.06% 1.04% 1.30% 1.33% 1.25% 1.25% 1.29% 1.17% Federal National Mortgage Association 4.50% 3.72% 3.81% 3.73% 3.76% 4.43% 3.55% 3.38% 3.47% 3.49% 2.91% 1.84% 3.55% Government National Mortgage Association 0.03% 0.03% 0.03% 0.03% 0.02% 0.03% 0.02% 0.03% 0.02% 0.03% 0.02% 0.02% 0.03% Other Government Agencies 0.75% 0.66% 0.67% 0.64% 0.66% 0.61% 0.62% 0.60% 1.33% 1.27% 1.25% 1.28% 0.86% Sub-total 6.43% 5.53% 5.61% 5.48% 5.52% 6.13% 5.23% 5.31% 6.15% 6.04% 5.43% 4.43% 5.61% Total % % % % % % % % % % % % % 10

11 Thornburg New York Intermediate Municipal Fund All income earned by Thornburg New York Intermediate Municipal Fund ( the Fund ) during 2008 was based on investments in municipal obligations of political subdivisions located in the state of New York, or investments in obligations of U.S. territories and possessions which bear interest exempt from taxation by the state of New York. Generally speaking, distributions made by the Fund to individuals are not subject to federal income taxes, but they must be reported on your 2008 federal income tax return. To the best of our knowledge none of the income earned by the Fund is subject to the alternative minimum tax applicable to individuals. Average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 New York 96.65% 96.55% 96.68% 96.69% 96.70% 96.73% 98.48% % % % % % 98.21% Puerto Rico 3.35% 3.45% 3.32% 3.31% 3.30% 3.27% 1.52% 0.00% 0.00% 0.00% 0.00% 0.00% 1.79% Total Municipal Income 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Special Requirements for Corporations Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, will be included in such corporation s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation. Reich & Tang Daily Income Fund State-by-State Breakdown On the next page is a table showing the percentage breakdown by state or U.S. possession of the income earned by Reich & Tang Daily Income Fund, (the Fund ) for those states or possessions in which the Fund had investments at any time during Reporting Requirements for your 2008 Federal Return: Individuals Your dividends from the Fund must be reported on your 2008 return. These dividends are not subject to regular federal income tax. For the calendar year 2008, an average of 46.40% of this income is considered preferential income for alternative minimum tax purposes and may be treated as a preference item for the purpose of the alternative minimum tax on certain individuals and on corporations. Shareholders are advised to consult their own tax advisors as to the extent and effect of such treatment. Remember: State and local taxes vary, and we suggest that you contact your tax advisor for information on those taxes. Special Requirements for Corporations Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, will be included in the corporation s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation. 11

12 Reich & Tang Daily Income Fund (Continued) The following listing represents the percentage breakdown by state or U.S. possession of the income paid by the Fund for those states or possessions in which the Fund had investments at any time during State and local taxes vary, and we suggest that you contact your tax advisor with respect to these taxes. Please retain this notice for your records. State Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average 2008 Alabama 1.29% 0.86% 0.86% 0.89% 1.08% 0.84% 0.96% 1.00% 1.12% 1.27% 0.72% 1.14% 1.03% Alaska 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Arizona 1.07% 1.15% 0.96% 0.95% 0.99% 0.87% 0.90% 0.96% 0.98% 1.06% 0.71% 0.65% 0.97% Arkansas 0.28% 0.38% 0.37% 0.48% 0.50% 0.57% 0.56% 0.00% 0.00% 0.00% 0.00% 0.00% 0.26% California 1.65% 2.10% 1.85% 2.18% 2.13% 2.42% 2.36% 2.30% 1.46% 1.37% 2.23% 2.05% 1.93% Colorado 4.52% 3.55% 2.79% 2.66% 2.22% 1.97% 1.46% 1.57% 1.32% 2.62% 2.33% 1.79% 2.56% Connecticut 5.79% 4.39% 3.01% 1.85% 1.00% 0.53% 0.58% 0.74% 0.74% 0.40% 0.60% 0.10% 1.99% Delaware 0.62% 0.38% 0.18% 0.18% 0.19% 0.17% 0.34% 0.33% 0.23% 0.00% 0.00% 0.00% 0.25% District of Columbia 0.00% 0.00% 0.81% 1.64% 1.71% 1.94% 1.63% 1.57% 0.10% 0.00% 0.63% 0.84% 0.76% Florida 13.29% 12.70% 12.26% 9.40% 11.06% 7.72% 7.23% 7.38% 10.72% 9.23% 5.32% 3.76% 9.86% Georgia 1.95% 1.18% 2.16% 2.58% 2.72% 5.15% 6.27% 8.17% 10.36% 10.78% 7.11% 7.35% 5.34% Guam 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Hawaii 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Idaho 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Illinois 5.71% 6.11% 8.36% 8.12% 8.29% 7.33% 7.59% 8.00% 8.99% 8.33% 7.94% 6.98% 7.61% Indiana 0.99% 0.98% 1.63% 1.01% 1.08% 0.96% 0.99% 1.10% 1.42% 2.54% 10.17% 10.52% 2.28% Iowa 1.25% 1.33% 1.42% 1.60% 1.31% 0.94% 1.12% 0.98% 1.65% 1.01% 0.84% 0.86% 1.23% Kansas 0.58% 0.15% 0.19% 0.18% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.12% Kentucky 1.74% 1.91% 1.86% 1.92% 1.73% 2.23% 1.59% 1.56% 1.91% 2.12% 1.84% 1.15% 1.82% Louisiana 0.72% 0.40% 0.49% 0.49% 0.48% 0.34% 0.34% 0.36% 0.49% 1.85% 1.14% 0.98% 0.69% Maine 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Maryland 3.30% 4.10% 3.80% 2.68% 2.89% 2.61% 2.52% 2.65% 2.32% 2.15% 2.07% 1.93% 2.84% Massachusetts 0.04% 0.04% 0.05% 0.26% 0.36% 0.29% 0.33% 0.19% 0.00% 0.00% 0.00% 0.00% 0.12% Michigan 4.44% 5.39% 4.42% 5.10% 4.95% 5.03% 4.48% 4.20% 3.16% 3.42% 5.06% 5.14% 4.46% Minnesota 2.81% 2.38% 2.41% 3.01% 2.92% 3.30% 3.19% 1.15% 0.10% 0.09% 0.05% 0.05% 1.82% Mississippi 0.09% 0.08% 0.11% 0.11% 0.52% 1.37% 1.36% 1.62% 2.27% 0.14% 0.11% 0.65% 0.66% Missouri 1.86% 1.97% 2.22% 2.56% 2.51% 2.50% 1.74% 1.63% 0.58% 0.11% 0.17% 0.18% 1.52% Montana 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Nebraska 0.84% 0.77% 1.02% 1.02% 0.78% 0.69% 0.70% 0.74% 0.95% 1.03% 0.68% 0.49% 0.84% Nevada 1.73% 1.62% 2.14% 2.26% 2.14% 2.15% 2.14% 2.19% 2.83% 2.88% 1.81% 1.66% 2.16% New Hampshire 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% New Jersey 1.26% 1.17% 0.89% 1.54% 1.74% 2.42% 1.97% 1.73% 2.02% 1.79% 1.15% 1.73% 1.58% New Mexico 0.04% 0.04% 0.04% 0.02% 0.00% 0.70% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.06% New York 5.03% 4.80% 5.15% 3.98% 1.00% 0.00% 1.03% 0.48% 0.52% 2.86% 2.06% 2.06% 2.71% North Carolina 1.84% 1.80% 1.88% 3.23% 4.11% 3.57% 4.28% 4.22% 5.57% 5.91% 3.64% 2.69% 3.53% North Dakota 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Ohio 4.38% 4.71% 5.00% 5.56% 5.69% 6.01% 5.41% 4.46% 3.67% 3.65% 3.99% 4.61% 4.67% Oklahoma 1.24% 1.22% 1.55% 1.49% 1.59% 1.38% 1.39% 1.47% 1.85% 1.44% 1.03% 0.93% 1.41% Oregon 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Pennsylvania 4.67% 3.91% 4.23% 5.80% 6.15% 6.16% 2.38% 3.15% 3.00% 2.29% 1.34% 1.24% 3.78% Puerto Rico 1.76% 4.08% 3.16% 2.99% 2.26% 1.26% 1.61% 1.52% 1.35% 1.50% 0.25% 0.49% 1.97% Rhode Island 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% South Carolina 3.43% 3.48% 4.12% 4.05% 4.28% 4.14% 4.12% 4.21% 3.74% 3.28% 5.48% 6.29% 4.04% South Dakota 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Tennessee 1.01% 0.48% 0.37% 0.29% 0.61% 0.62% 0.64% 0.63% 0.38% 0.96% 2.40% 1.34% 0.76% Texas 5.58% 6.27% 6.21% 6.52% 6.90% 7.52% 8.70% 6.34% 3.35% 3.83% 1.95% 1.87% 5.45% US Virgin Islands 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Utah 1.04% 0.57% 0.43% 0.49% 0.46% 0.51% 1.30% 1.79% 1.86% 2.17% 2.01% 1.77% 1.19% Vermont 2.36% 3.22% 3.15% 4.10% 4.33% 4.82% 5.49% 6.84% 4.84% 0.34% 0.31% 0.30% 3.30% Virginia 0.13% 0.29% 0.47% 0.48% 0.81% 0.71% 0.72% 0.76% 1.01% 1.03% 0.58% 0.52% 0.61% Washington 3.41% 3.85% 2.66% 1.88% 1.92% 1.90% 1.87% 1.98% 3.36% 3.30% 2.07% 3.30% 2.75% West Virginia 0.00% 0.00% 0.00% 0.00% 0.00% 0.65% 1.60% 0.97% 1.30% 1.38% 0.91% 0.83% 0.60% Wisconsin 2.65% 3.11% 3.65% 4.45% 4.56% 4.53% 5.24% 7.07% 5.82% 9.10% 17.59% 19.15% 6.38% Wyoming 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.14% 0.01% Multi-States 3.61% 3.08% 1.67% 0.00% 0.03% 1.18% 1.87% 1.99% 2.66% 2.77% 1.71% 2.47% 2.080% Total % % % % % % % % % % % % % 12

Mutual Fund Tax Information

Mutual Fund Tax Information We have provided this information as a service to our shareholders. Thornburg Investment Management cannot and does not give tax or accounting advice. If you have further questions