Thornburg International Value Fund

Scorecard
3 / 5 Stars
Lipper
1 2 2 1 3
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
2 / 5 Stars
TheStreet.com
E+ (Sell)

U.S. News evaluated 76 Foreign Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 9.45 percent over the past year, 2.23 percent over the past three years, 14.45 percent over the past five years, and 7.53 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date -3.0%
1 Year 9.5%
3 Years (Annualized) 2.2%
5 Years (Annualized) 14.5%
10 Years (Annualized) 7.5%

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Summary

In the wake of a global recession, Thornburg International Value Fund's team sees a world of opportunity.

As of March 05, 2014, the fund has assets totaling almost $26.00 billion invested in 75 different holdings. Its portfolio consists of stocks in foreign companies.

This fund has heavy exposure to Europe, so the debt crisis that's brewing across the Atlantic has dragged down its returns so far this year. Still, there are some bright spots. Says Morningstar: "This fund has around 2% of its assets in the markets at the center of the debt crisis-- Portugal, Italy, Greece, Spain, and Ireland--while the typical foreign large-blend fund has roughly 6% of its assets in those markets."

Coming out of the recession, management liked value stocks in the financial, energy, and materials sectors. This shift follows a preference in 2008 for blue-chip companies with more defensive strategies. The return to some of the safer names in financials was profitable in the opening months of 2009, with the fund picking up stocks in the battered industry at attractive prices. Still, the fund has generally stuck with quality stocks, and that preference weighed on returns a bit when low-quality picks rallied last year. Meanwhile, the fund has maintained its exposure to emerging countries and has been particularly enthusiastic about China and Brazil. The fund, according to comanager Wendy Trevisani, also looks to take advantage of global dynamics by investing in some companies that are based in developed countries but depend largely on emerging markets for profits. The fund has returned 9.45 percent over the past year and 2.23 percent over the past three years.

The fund has a long track record of steady returns. It has always focused on three types of companies: those with basic value, consistent earners, and emerging franchises. Weightings to each have shifted, depending on the managers' view of the market. The same flexibility applies to country selections. India, for example, used to occupy part of the portfolio but has since fallen out of favor with management. This diversification has helped the fund perform well in a variety of market conditions. Historically, the fund has owned a small number of names and made picks that have separated it from its peers. Says Morningstar, "[I]nterested investors should be sure that they understand that its penchant for charting its own course and compact nature will lead to some rough spells along the way." The fund has returned 14.45 percent over the past five years and 7.53 percent over the past decade.

Investment Strategy

Thornburg International Value focuses on basic-value picks, consistent earners, and emerging franchises. The latter group includes stocks in companies that Trevisani calls "a little bit more embryonic" in nature. Examples include technology companies in developing countries and alternative energy firms. 

Role in Portfolio

Morningstar calls this fund a "core" holding.

Management

The fund is led by comanagers William Fries, Wendy Trevisani, and Lei Wang. Fries has been with the fund since it launched in 1998. In 2003, Morningstar named him International Fund Manager of the Year. Trevisani and Wang took up their current positions in 2006. Wang, who previously worked for the People's Bank of China, has been key in helping the fund develop a strategy for China. 

Fees

Thornburg International Value Fund has an expense ratio of 1.45 percent.

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Risk

Like all funds that invest primarily in stocks, this one comes with some risks. 

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See Also:

Top Thornburg Funds