Thornburg Income Builder Opportunities Trust Announces Initial Distribution
Thornburg Income Builder Opportunities Trust (NASDAQ: TBLD) announced its initial monthly distribution.
SANTA FE, NM — August 25, 2021 — Thornburg Income Builder Opportunities Trust (the “Trust”) (NASDAQ: TBLD) today announced its initial monthly distribution of $0.10417 per share on the Trust’s common shares, payable on September 20, 2021 to common shareholders of record as of September 13, 2021. Based on the Trust’s initial public offering price of $20.00 per share, the distribution represents an annualized distribution rate of approximately 6.25%.
The following dates apply to today’s monthly distribution declaration:
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit qa.thornburg.com/tbld-distributions.
The Trust’s investment objective is to provide current income and additional total return. The Trust seeks to achieve its objective by investing, directly or indirectly, at least 80% of its managed assets in a broad range of income-producing securities. The Trust invests in both equity and debt securities of companies located in the United States and around the globe. The Trust may invest in non-U.S. domiciled companies, including up to 20% of its managed assets at the time of investment in equity and debt securities of emerging market companies.
The Trust closed its initial public offering on July 30, 2021 and a partial exercise of overallotment shares on August 17, 2021, and as a result, received net proceeds from the offering of approximately $605 million.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
Founded in 1982, Thornburg Investment Management is a privately owned global investment firm that offers a range of multi-strategy solutions for institutions and financial advisors. A recognized leader in fixed income, equity and alternatives investing, the firm oversees $49 billion1 as of July 31, 2021 across mutual funds, closed-end funds, institutional accounts, separate accounts for high-net-worth investors and UCITS funds for non-U.S. investors. Thornburg is headquartered in Santa Fe, New Mexico, with additional offices in London, Hong Kong and Shanghai.
At Thornburg, we believe unconstrained investing leads to better outcomes for our clients. Our culture is collaborative, and our investment solutions are highly active, high conviction and benchmark agnostic. When it comes to finding value for our clients, it’s more than what we do, it’s how we do it: how we think, how we invest and how we’re structured.
For more information, visit qa.thornburg.com or call 877 215 1330.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. A registration statement relating to these securities has been filed with and declared effective by the U.S. Securities and Exchange Commission.
Before investing, carefully consider the Trust’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor, visit qa.thornburg.com/tbld, or call 877 215 1330. Read them carefully before investing.
Certain statements in this press release constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Trust, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the Trust nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
Risk is inherent in all investing. There can be no assurance that the Trust will achieve its investment objective, and you could lose some or all of your investment.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Thornburg Securities Corporation, Distributor
Director of Global Communications
Thornburg Investment Management
Tel: +1 505 467 5345
1 Includes $46.8 billion in assets under management and $1.9 billion in assets under advisement as of July 31, 2021.