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Thornburg Income Builder Opportunities Trust Declares Monthly Distribution

On April 1, 2025, Thornburg Income Builder Opportunities Trust (NASDAQ: TBLD) confirmed its commitment to delivering value to its shareholders with the announcement of a monthly distribution of $0.10417 per share. This distribution is scheduled to be paid on April 21, 2025, to common shareholders who are on record as of April 11, 2025.

Overview of the Distribution

The Trust's decision to maintain the monthly distribution at $0.10417 reflects its ongoing strategy to reward investors while meeting its financial commitments. The notifications indicate that this distribution will not deviate from previously announced figures, representing no change from earlier declarations. Here are the key details:

Monthly Distribution Amount: $0.10417
Payable Date: April 21, 2025
Record Date: April 11, 2025
Change from Previous Declaration: No Change

Understanding the Trust's Distribution Philosophy

Distributions from Thornburg Income Builder are calculated based on the Trust's net asset value or market price per share as of the announcement date. Importantly, these distributions derive primarily from net investment income, which encompasses regular interest and dividends, and may also integrate capital gains or returns of capital based on the Trust’s performance.

Specifically, the distribution slated for April 21 includes a short-term capital gain accounted for as follows: $0.04715 from net realized short-term capital gains. The tax characteristics of these distributions will be outlined to shareholders via Form 1099 at the conclusion of the 2025 fiscal year.

Fiscal Year Cumulative Distributions

As of the announcement, the cumulative distributions for the fiscal year running from October 1, 2024, through September 30, 2025, are significant. Here’s a breakdown of current and cumulative distributions to provide insight into the Trust’s economic performance:

Net Investment Income:
- Current Distribution: $0.05702 (55%)
- Cumulative FYTD: $0.59277 (81%)
Net Realized Short-term Capital Gain:
- Current Distribution: $0.04715 (45%)
- Cumulative FYTD: $0.07103 (10%)
Net Realized Long-term Capital Gain:
- Current Distribution: $0.00000
- Cumulative FYTD: $0.06539 (9%)
Return of Capital:
- Current Distribution: $0.00000
- Cumulative FYTD: $0.00000

Shareholder Considerations

For shareholders, it is crucial to understand that distributions do not necessarily correlate directly to net profit. A distribution that includes a return of capital represents a partial refund of the initial investment without reflecting the Trust’s performance. Future distributions may also embody returns of capital, potentially impacting the tax basis for common shareholders. This can increase any potential gains or diminish losses on subsequent sale transactions of common shares.

Investment Strategy of Thornburg

Thornburg Income Builder Opportunities Trust aims to generate consistent income alongside total return through a diversified investment approach. At least 80% of the Trust's assets are targeted towards generating income-producing securities encompassing both equity and debt investments. The Trust may also consider international assets, including up to 20% allocated to companies in emerging markets.

In a broader financial context, as a registered investment company, the Trust faces a 4% excise tax if it doesn’t distribute adequate earnings as mandated at the calendar year’s close. Nonetheless, the Board of Trustees, together with Trust management, evaluates the decision to retain income based on the best interests of the shareholders.

About Thornburg Investment Management

Established in 1982, Thornburg Investment Management operates as a high-conviction manager in equities, fixed income, multi-asset solutions, and alternative investments. As of February 28, 2025, the firm oversees $47 billion in client assets and offers a variety of investment vehicles, including mutual funds, ETFs, and closed-end funds. Headquartered in Santa Fe, New Mexico, with international offices in Hong Kong and London, Thornburg continues its dedication to providing robust investment management solutions to its widespread clientele.

For more detailed information regarding Thornburg Income Builder Opportunities Trust and its distribution policies, visit Thornburg.com or contact their global communications team.