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The fund, managed by Thornburg Investment Management, Inc., is structured to achieve its investment objective by diversifying its portfolio across a wide array of equity securities. This includes a focus on common stocks, preferred stocks, and investments in publicly traded real estate investment trusts (REITs). By adopting a broad investment approach, the fund positions itself to capitalize on various market opportunities, focusing on equities that its investment advisor, Thornburg, deems promising. The fund's strategy encompasses investing in companies of all sizes, notably including smaller firms with market capitalizations under $500 million, indicating a flexibility to venture into different market segments to pursue its investment goals.
These are shares of ownership in public companies. The fund's investment in common stocks represents a basic yet fundamental approach to equity investment, providing it with the potential for capital appreciation and dividends.
Preferred stocks combine features of both equity and debt securities. The fund includes preferred stocks in its portfolio to benefit from their typically higher dividend payments compared to common stocks and their higher claim on assets in the event of a company's liquidation.
Investing in REITs allows the fund to participate in the real estate sector without directly owning properties. This type of investment can offer the fund regular income streams via dividends and potential growth through appreciation in the value of the underlying real estate assets.
With an eye on diversification and growth potential, the fund considers investments in smaller companies with market capitalizations of less than $500 million. This strategy allows the fund to scout for high-growth opportunities in the segment of the market that is often less followed by larger investment entities.