Thornburg Equity Income Builder Fund

Investor Summary

Matt Burdett serves as lead equity manager since mid-2024, supported by Brian McMahon who provides strategic oversight with over 40 years of experience at Thornburg, and Christian Hoffmann, CFA, who manages the fixed income component since 2023. The team operates under CEO Mark Zinkula's flatter, consensus-driven structure emphasizing collaborative investment processes. Recent leadership transitions included Ben Kirby's departure in mid-2024 and Jason Brady's exit in 2023, resulting in a more collaborative decision-making framework. The management approach focuses on shared accountability for portfolio outcomes while maintaining Thornburg's long-established commitment to fundamental research and value creation through income-generating equity investments.

Fund Strategy

The Investment Income Builder Fund employs a multi-asset portfolio approach focusing on global dividend-paying stocks selected through bottom-up, fundamentals and valuation-sensitive processes. The strategy emphasizes active, research-driven stock selection targeting businesses with strong fundamentals, solid balance sheets, durable cash flow generation, and shareholder-friendly dividend policies. Under normal conditions, at least 80% of net assets are invested in income-producing securities and at least 50% in common stocks, with the primary objective of providing current income exceeding average U.S. stock yields while pursuing long-term capital appreciation as a secondary goal. The approach seeks high-quality companies worldwide demonstrating sustainable competitive advantages and consistent dividend-paying capabilities through rigorous fundamental analysis.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
10.71%	9.93%	9.93%

Executive Summary

Thornburg Investment Income Builder Fund delivered a strong Q1 2026 return of +9.93%, significantly outperforming its blended benchmark return of -2.68%. The fund's core thesis centers on maintaining exposure to dividend-paying firms with resilient businesses and strong capital structures. The portfolio is globally diversified with significant allocations to telecommunications (25.1%), financials (21.8%), and information technology (13.2%). Key contributors included telecom operators like Orange, AT&T, and Vodafone, along with energy companies such as TotalEnergies. The fund paid ordinary dividends of $0.26 per share during Q1 2026, representing a 7.9% increase versus Q1 2025. More than 70% of equity holdings increased dividends in local currencies in 2025. The portfolio's 3.5% weighted average equity dividend yield significantly exceeds the 1.6% dividend yield of the MSCI Index. Despite macro headwinds including elevated valuations, inflation concerns, and geopolitical tensions, the managers remain optimistic about the fund's return potential, believing the businesses retain strong market positions and are valued attractively relative to their histories.

Forward Outlook

We are optimistic about the future return potential of Thornburg Investment 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 attractively in relation to their own histories and relative to other assets.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 18 2026	2026 Q1	005930 KS, AVGO, C, MRK, ORAN, T, TSM, TTE	dividends, energy, financials, global, income, technology, Telecommunications, Utilities	-	Thornburg Investment Income Builder delivered +9.93% in Q1 2026, outperforming benchmarks through exposure to dividend-paying companies with resilient businesses. The globally diversified portfolio emphasizes telecommunications, financials, and technology, with a 3.5% weighted average dividend yield. Despite macro headwinds, managers remain optimistic about return potential given attractive valuations and strong business fundamentals.
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	-	Thornburg Equity Income Builder outperformed significantly in 2025 with a 36.96% return, focusing on dividend-paying companies with resilient businesses trading at attractive 14.3x P/E versus market's 21.6x. Despite macro uncertainties around inflation and trade policies, the manager remains optimistic given the portfolio's strong market positions, sustainable cash flows, and compelling valuations relative to history.
Sep 30 2025	2025 Q3	005930.KS, AVGO, AZN, BIRG.I, BNP.PA, C, CME, CSCO, DTE.DE, ELE.MC, ENEL.MI, EOAN.DE, GLEN.L, HD, INGA.AS, MRK, NN.AS, PFE, ROG.SW, T, TSCO.L, TSM, TTE, Z74.SI	dividends, financials, global, healthcare, income, Telecom, Utilities, value	-	Thornburg Equity Income Builder focuses on dividend-paying companies with resilient businesses and strong capital structures. The portfolio offers a 4.3% dividend yield at attractive 13.6x forward P/E valuation, significantly cheaper than broader markets. Despite near-term macro uncertainties including trade policy changes and elevated valuations, the manager remains optimistic about the portfolio's intrinsic value and future dividend growth potential.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 18 2026

2026 Q1

005930 KS, AVGO, C, MRK, ORAN, T, TSM, TTE

dividends, energy, financials, global, income, technology, Telecommunications, Utilities

Thornburg Investment Income Builder delivered +9.93% in Q1 2026, outperforming benchmarks through exposure to dividend-paying companies with resilient businesses. The globally diversified portfolio emphasizes telecommunications, financials, and technology, with a 3.5% weighted average dividend yield. Despite macro headwinds, managers remain optimistic about return potential given attractive valuations and strong business fundamentals.

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

Thornburg Equity Income Builder outperformed significantly in 2025 with a 36.96% return, focusing on dividend-paying companies with resilient businesses trading at attractive 14.3x P/E versus market's 21.6x. Despite macro uncertainties around inflation and trade policies, the manager remains optimistic given the portfolio's strong market positions, sustainable cash flows, and compelling valuations relative to history.

Sep 30 2025

2025 Q3

005930.KS, AVGO, AZN, BIRG.I, BNP.PA, C, CME, CSCO, DTE.DE, ELE.MC, ENEL.MI, EOAN.DE, GLEN.L, HD, INGA.AS, MRK, NN.AS, PFE, ROG.SW, T, TSCO.L, TSM, TTE, Z74.SI

dividends, financials, global, healthcare, income, Telecom, Utilities, value

Thornburg Equity Income Builder focuses on dividend-paying companies with resilient businesses and strong capital structures. The portfolio offers a 4.3% dividend yield at attractive 13.6x forward P/E valuation, significantly cheaper than broader markets. Despite near-term macro uncertainties including trade policy changes and elevated valuations, the manager remains optimistic about the portfolio's intrinsic value and future dividend growth potential.

QUARTER	THEMES	TAGS
2026 Q1	Dividends The fund focuses on dividend-paying firms with resilient businesses and strong capital structures. More than 70% of equity holdings increased dividends in local currencies in 2025. The portfolio's 3.5% weighted average equity dividend yield significantly exceeds the 1.6% dividend yield of the MSCI Index.	Dividend Growth Dividend Yield Income Cash Flow Distribution
	Telecommunications Telecommunications represents the largest sector allocation at 25.1% of the portfolio. The fund holds major telecom operators including Orange, AT&T, Deutsche Telekom, Vodafone, and Singapore Telecommunications, which were among the top contributors to quarterly performance.	Telecom Infrastructure Wireless Network Operators 5G Broadband
	Energy Energy sector holdings include producers and infrastructure operators like TotalEnergies, Shell, ENI, TC Energy, and Enbridge. The energy sector delivered strong returns of around +37% for Q1 2026, contributing positively to portfolio performance.	Oil Natural Gas Energy Infrastructure Pipelines Integrated Oil
2025 Q4	Technology The Fund invests at least 80% of net assets in technology companies across multiple sub-industries including IT consulting, internet services, application software, communications equipment, semiconductors, and interactive media. The portfolio focuses on companies with sector-leading cash flows, attractive valuations, and sustainable profitability prospects.	Software Hardware Semiconductors Internet Communications
2025 Q3	Dividends The fund maintains exposure to dividend-paying firms with resilient businesses and strong capital structures. The weighted average equity portfolio dividend yield of 4.3% significantly exceeds the 1.8% dividend yield of the MSCI Index. Most holdings have made reasonable progress growing their bases of paying customers and distributable cash flows to support multi-year dividend growth.	Dividend Yield Dividend Growth Income Cash Flow Distribution
	Value The manager believes the portfolio incorporates significant intrinsic value with attractive current dividend yields and records of dividend growth indicating good value. The weighted harmonic average 2025 consensus expected price/earnings ratio for the equity portfolio was approximately 13.6x, well below the 20.8x price/earnings ratio of the MSCI All Country World equity index.	Valuation Price/Earnings Intrinsic Value Attractive Pricing Undervalued
	Resilience The fund focuses on firms with resilient businesses that occupy important positions in their respective markets and tend to be well capitalized. These businesses retain their market positions providing important products and services that generate cash flows to pay attractive dividends, today and in the future.	Business Quality Market Position Capitalization Defensive Stability

QUARTER

THEMES

Dividends

The fund focuses on dividend-paying firms with resilient businesses and strong capital structures. More than 70% of equity holdings increased dividends in local currencies in 2025. The portfolio's 3.5% weighted average equity dividend yield significantly exceeds the 1.6% dividend yield of the MSCI Index.

Dividend Growth Dividend Yield Income Cash Flow Distribution

Telecommunications

Telecommunications represents the largest sector allocation at 25.1% of the portfolio. The fund holds major telecom operators including Orange, AT&T, Deutsche Telekom, Vodafone, and Singapore Telecommunications, which were among the top contributors to quarterly performance.

Telecom Infrastructure Wireless Network Operators 5G Broadband

Energy

Energy sector holdings include producers and infrastructure operators like TotalEnergies, Shell, ENI, TC Energy, and Enbridge. The energy sector delivered strong returns of around +37% for Q1 2026, contributing positively to portfolio performance.

Oil Natural Gas Energy Infrastructure Pipelines Integrated Oil

2025 Q4

Technology

The Fund invests at least 80% of net assets in technology companies across multiple sub-industries including IT consulting, internet services, application software, communications equipment, semiconductors, and interactive media. The portfolio focuses on companies with sector-leading cash flows, attractive valuations, and sustainable profitability prospects.

Software Hardware Semiconductors Internet Communications

2025 Q3

Dividends

The fund maintains exposure to dividend-paying firms with resilient businesses and strong capital structures. The weighted average equity portfolio dividend yield of 4.3% significantly exceeds the 1.8% dividend yield of the MSCI Index. Most holdings have made reasonable progress growing their bases of paying customers and distributable cash flows to support multi-year dividend growth.

Dividend Yield Dividend Growth Income Cash Flow Distribution

Value

The manager believes the portfolio incorporates significant intrinsic value with attractive current dividend yields and records of dividend growth indicating good value. The weighted harmonic average 2025 consensus expected price/earnings ratio for the equity portfolio was approximately 13.6x, well below the 20.8x price/earnings ratio of the MSCI All Country World equity index.

Valuation Price/Earnings Intrinsic Value Attractive Pricing Undervalued

Resilience

The fund focuses on firms with resilient businesses that occupy important positions in their respective markets and tend to be well capitalized. These businesses retain their market positions providing important products and services that generate cash flows to pay attractive dividends, today and in the future.

Business Quality Market Position Capitalization Defensive Stability

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
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TICKER	COMMENTARY
ORAN	Orange SA +22.4% Q1 2026, +67.2% calendar 2025. Multinational telecommunications network operator, home market is France Telecom. 4.24% dividend yield, +4.6%/year 5-year local currency dividend growth rate.
TSM	Taiwan Semiconductor +11.3% Q1 2026, +50.5% calendar 2025. Leading semiconductor chip foundry, fabricating chips used in many digital devices. 1.25% dividend yield, +15.4%/year 5-year local currency dividend growth rate.
C	Citigroup -2.8% Q1 2026, +65.8% calendar 2025. U.S. based global capital markets & retail bank and treasury services provider. 2.17% dividend yield, +3.0%/year 5-year local currency dividend growth rate.
T	AT&T Inc. +16.7% Q1 2026, +9.1% calendar 2025. U.S. based wireless & wireline services. 113 million wireless, 14 million broadband customers. 3.87% dividend yield, -11.8%/year 5-year local currency dividend growth rate.
TTE	Total Energies SE +43.1% Q1 2026, +18.9% calendar 2025. Produces, refines, transports, and markets oil and natural gas products globally. 4.20% dividend yield, +5.0%/year 5-year local currency dividend growth rate.
AVGO	Broadcom Inc -10.6% Q1 2026, +49.3% calendar 2025. Develops and markets digital and analogue application specific semiconductors. 0.86% dividend yield, +12.6%/year 5-year local currency dividend growth rate.
005930.KS	Samsung Electronics +31.5% Q1 2026, +131.4% calendar 2025. Manufactures consumer & industrial electronic products, leading semiconductor producer. 1.00% dividend yield, +3.3%/year 5-year local currency dividend growth rate.
MRK	Merck & Co. +14.3% Q1 2026, +5.8% calendar 2025. Global health care company develops and sells medicines, vaccines, biologic therapies. 2.87% dividend yield, +5.7%/year 5-year local currency dividend growth rate.

TICKER

COMMENTARY

ORAN

Orange SA +22.4% Q1 2026, +67.2% calendar 2025. Multinational telecommunications network operator, home market is France Telecom. 4.24% dividend yield, +4.6%/year 5-year local currency dividend growth rate.

TSM

Taiwan Semiconductor +11.3% Q1 2026, +50.5% calendar 2025. Leading semiconductor chip foundry, fabricating chips used in many digital devices. 1.25% dividend yield, +15.4%/year 5-year local currency dividend growth rate.

Citigroup -2.8% Q1 2026, +65.8% calendar 2025. U.S. based global capital markets & retail bank and treasury services provider. 2.17% dividend yield, +3.0%/year 5-year local currency dividend growth rate.

AT&T Inc. +16.7% Q1 2026, +9.1% calendar 2025. U.S. based wireless & wireline services. 113 million wireless, 14 million broadband customers. 3.87% dividend yield, -11.8%/year 5-year local currency dividend growth rate.

TTE

Total Energies SE +43.1% Q1 2026, +18.9% calendar 2025. Produces, refines, transports, and markets oil and natural gas products globally. 4.20% dividend yield, +5.0%/year 5-year local currency dividend growth rate.

AVGO

Broadcom Inc -10.6% Q1 2026, +49.3% calendar 2025. Develops and markets digital and analogue application specific semiconductors. 0.86% dividend yield, +12.6%/year 5-year local currency dividend growth rate.

005930.KS

Samsung Electronics +31.5% Q1 2026, +131.4% calendar 2025. Manufactures consumer & industrial electronic products, leading semiconductor producer. 1.00% dividend yield, +3.3%/year 5-year local currency dividend growth rate.

MRK

Merck & Co. +14.3% Q1 2026, +5.8% calendar 2025. Global health care company develops and sells medicines, vaccines, biologic therapies. 2.87% dividend yield, +5.7%/year 5-year local currency dividend growth rate.

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Matt Burdett

Thornburg Equity Income Builder Fund

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Dividends

Telecommunications

Energy

Technology

Dividends

Value

Resilience

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Matt Burdett Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Thornburg Equity Income Builder Fund