By: Dividend Sensei
The $16 billion Thornburg Investment Income Builder Fund’s Ben Kirby scours the world for investments. He shared three of his favorites stocks — from China, Italy and here in the U.S. — in an interview.
The mutual fund’s income objective sets it apart from most “blended” funds, according to Kirby, who said last year’s strong performance — a 9.5% return for Class A TIBAX, -0.60% shares, excluding sales charges — was “helped a lot by financials and a global inflation trade we had been positioning for. It was a position that, frankly, didn’t help the previous year or two.”
Kirby, who oversees the fund with two other managers, said he’d been reducing consumer-staples and utilities stocks, which had been favored by investors for their high dividend yields.
“The big picture was that expensive defensive [stocks] that worked well in 2014, 2015 and the first half of 2016, cratered later in 2016, especially with Trump.”