| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.2% | 6.7% | 35.7% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 35.7% | 12.6% | 19.4% | -6.0% | 17.6% | 2.3% |
Thornburg Equity Income Builder delivered strong performance in Q4 2025, returning 6.95% versus the MSCI World Index's 3.12%, and 36.96% for the full year versus 21.09% for the benchmark. The fund maintains its focus on dividend-paying companies with resilient businesses and strong capital structures, trading at attractive valuations. The portfolio's weighted average P/E ratio of 14.3x is well below the MSCI All Country World Index's 21.6x, while offering a 4.2% dividend yield compared to the benchmark's 1.7%. Top contributors included telecommunications operators like Orange and Vodafone, technology firms including Broadcom and Samsung, and financials such as Citigroup and BNP Paribas. Despite macro headwinds including elevated U.S. market valuations, inflation concerns, and evolving trade policies creating uncertainty, the manager remains optimistic about the portfolio's return potential. The businesses retain strong market positions and generate cash flows to support attractive dividends both today and in the future, while being valued attractively relative to their histories and other assets.
The fund focuses on dividend-paying companies with resilient businesses, strong capital structures, and attractive valuations that can generate sustainable cash flows to support dividend growth over time.
We are optimistic about the future return potential of Thornburg Equity Income Builder's assets. Virtually all the businesses in your portfolio retain their market positions providing important products and services that generate cash flows to pay attractive dividends, today and in the future. We believe they are valued very attractively in relation to their own histories and relative to other assets.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 22 2026 | 2025 Q4 | 005930.KS, AVGO, AZN, BNP.PA, C, CME, DTEGY, ELE.MC, ENEL.MI, KPN.AS, MRK, NN.AS, NVS, ORAN, PFE, RHHBY, T, TSCO.L, TSM, TTE | dividends, financials, global, healthcare, Telecommunications, Utilities, value | - | The fund maintains exposure to dividend-paying firms with resilient businesses and strong capital structures. The portfolio's weighted average dividend yield of 4.2% significantly exceeds the MSCI Index's 1.7% yield. Most holdings have made reasonable progress growing their bases of paying customers and distributable cash flows to support multi-year dividend growth. The portfolio trades at attractive valuations with a weighted harmonic average 2025 consensus P/E ratio of 14.3x, well below the MSCI All Country World Index's 21.6x. The manager believes these businesses are valued very attractively relative to their own histories and other assets, incorporating significant intrinsic value. The fund focuses on businesses that occupy important positions in their respective markets and tend to be well capitalized. These firms retain their market positions providing important products and services that generate cash flows. The manager emphasizes resilient businesses with strong capital structures that can maintain operations through various market conditions. |
| Sep 30 2025 | 2025 Q3 | - | CashFlow, dividends, income, Quality, Totalreturn | - | The letter emphasizes durable income generation through high-quality equities with sustainable dividends and prudent balance sheets. Thornburg highlights income as a total-return stabilizer in volatile and valuation-stretched markets, particularly when growth expectations are uncertain. Income-oriented equities remain attractive as dividends and cash returns anchor long-term compounding. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
DividendsJapanese companies paid record dividends of ¥18 trillion for fiscal year ending March 2025, a 13.8% year-over-year increase. Many major firms have adopted progressive dividend policies guaranteeing dividends will never be cut, only maintained or increased. |
Progressive Dividend Record Payouts Shareholder Returns Yield Growth |
Resilience2025 tested the fund's thesis severely with a bankruptcy, major customer losses, and cyber-attacks, yet delivered 17.45% net returns. The manager emphasizes that edge comes from exploiting inefficiency rather than avoiding adversity, demonstrating portfolio resilience through active management. |
Adversity Active Management Drawdowns Volatility | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
Income |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 005930.KS | Top gainers included Samsung (+38% in U.S. dollar terms) |
| AVGO | The primary contributors to its performance were our exposures to Broadcom |
| AZN | World-class pharmaceutical and medical products manufacturer |
| BNP.PA | Paris-based bank serving commercial, retail, investment, private and corporate banking services internationally |
| C | Money center bank Citigroup rose amid strong capital markets activity and benign credit conditions. The company continued to repurchase stock and return capital to shareholders, while expenses related to its transformation are expected to decline next year. |
| CME | Additionally, while CME is a great company and has been an excellent investment for our portfolio, it was at the high end of fair value, and we needed to make room for a new position as the portfolio was at out 20 stock holdings limit. |
| DTEGY | Deutsche Telekom +8.3%%/+24.8% 3.62% +8.4%/year Multinational telecom network operator, owns majority of T-Mobile (USA) |
| ENEL.MI | Enel SpA +46.2%/-3.9% 5.29% +7.5%/year Generates, distributes, and sells electricity and gas in Southern Europe & Latam |
| MRK | Top gainers in the Fund this quarter included Merck (+26%) |
| NN.AS | NN Group, a leading Dutch life and non-life insurance company and the Fund's third largest holding, generated a total return of 85% in USD terms last year. Despite this strong return, the shares continue to trade at a 10% discount to book value, and 8.5x 2026 estimated earnings. Management stands out as highly efficient capital allocators. |
| NVS | During the quarter, Chinese online discount retailer Vipshop Holdings Ltd., Canadian auto parts manufacturer Magna International and Swiss pharma Novartis AG were sold as each reached target valuation limits. |
| ORAN | Orange SA +67.2%/-12.6% 5.26% +4.6%/year Multinational telecommunications network operator, home market is France Telecom |
| PFE | Pfizer -6.1%/-7.8% 6.77% +2.50%/year One of the world's largest research-based pharmaceutical companies. |
| RHHBY | Roche (RHHBY) was another positive performer in 2025, driven by a robust pipeline of new and innovative drugs making it to market and favorable regulatory approvals. |
| T | Telecoms lagged on concerns that a new CEO at VZ (not held) will increase the competitive intensity within the industry. |
| TSCO.L | Tesco, a UK-based multinational grocery and retail company operating a leading supermarket chain. Now one of our top 10 holdings in the portfolio, Tesco continues to benefit from its scale advantages and price leadership, which have allowed it to gain market share despite a competitive environment and a UK consumer backdrop that remains value conscious. At the same time, margin contributions from initiatives in retail media and continued share repurchases support earnings growth without requiring an improvement in consumer spending. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| TTE | Global oil & gas producer and distributor and low carbon electricity supplier |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||
