Thornburg Short Duration Municipal Strategy
BENCHMARK: ICE BofA 1-3 Year U.S. Municipal Securities Index
Strategy Overview
The Short Duration Municipal Strategy is an actively managed diversified portfolio of municipal bonds with an average maturity of less than five years and average duration range of less than three years. All bonds are investment grade at time of purchase. The strategy applies a relative value framework, focusing on fundamentals and valuations to identify inefficiencies in the market. Team members are responsible for credit research, portfolio construction, trading and risk oversight and have the flexibility to source ideas across sector, geography and issuer. The strategy maintains exposure across the maturity spectrum in order to manage duration, hedge against interest rate fluctuations and limit taxable events.
Strategy Inception Date
1 Apr 2014
Portfolio Managers
Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Overview
Overview
Why Invest in This Strategy?
- Actively managed diversified portfolio of high-quality municipal bonds with an average duration of no more than three years.
- Proven bottom-up fundamental approach that incorporates a top-down macroeconomic overlay to identify what we perceive to be the most attractive opportunities on a relative value basis across geographic regions, sectors, issuers and revenue streams.
- Income-seeking strategy that aims for a stable net asset value, making it attractive for those with a short investment horizon, and is positioned to quickly take advantage of any increases in short-term interest rates.
Related Content
Performance
Performance
Returns
(As of 31 Dec 2025)2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Thornburg Short Duration Municipal Strategy - Gross (%)
0.74
0.72
1.60
1.68
2.73
1.66
0.44
-1.48
4.27
3.20
4.26
Thornburg Short Duration Municipal Strategy - Net (%)
0.34
0.38
1.25
1.33
2.37
1.34
0.09
-1.84
3.89
2.80
3.85
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
0.76
0.33
0.99
1.76
2.88
2.16
0.34
-2.03
3.35
2.63
3.76
Strategy Facts
Strategy Facts
(As of 31 Dec 2025)Benchmark
ICE BofA 1-3 Year U.S. Municipal Securities Index
eVestment Category
US Municipal Fixed Income - Short Duration
Characteristics
Characteristics
Portfolio
(As of 31 Dec 2025)Portfolio
Benchmark
Number of Holdings
124
—
Effective Duration
1.7 Yrs
1.6 Yrs
Average Effective Maturity
2.2 Yrs
1.9 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.2%
4.6%
Subject to Alternative Minimum Tax
12.2%
—
Portfolio
Portfolio
Top Holdings
(As of 30 Nov 2025)Name
Ticker/Symbol
Weight %
PEFA, Inc.
70556CAB0
2.7
Massachusetts Development Finance Agency
57584YPF0
2.2
Kentucky Public Energy Authority
74440DFN9
2.2
City of Los Angeles Department of Airports
5444452K4
2.0
Tennergy Corp./TN
880397CJ1
1.9
Travis County Housing Finance Corp.
89438UBM9
1.9
Harris County Cultural Education Facilities Finance Corp.
414009NF3
1.8
Chatom Industrial Development Board
162296AC1
1.8
California Community Choice Financing Authority
13013JGX8
1.7
Halifax County Industrial Development Authority
40579PAE1
1.5
Exposure Breakdown
Exposure Breakdown
(As of 31 Dec 2025)Sector Allocation
Portfolio (%)
Multi Family Mortgage
17.9
Industrial Development/Pollution Control
16.8
Prepaid Gas
13.7
Hospital
7.9
Short-Term Investments, Other Assets & Liabilities
6.2
School District General Obligation
5.6
Public Power
5.3
CCRC/Senior Living
4.3
School District App
3.7
Airport
3.5
Prepaid Electric
1.9
Dedicated Tax
1.8
Other Revenue
1.7
State General Obligation
1.4
Local Approp
1.3
None
1.3
Public Higher Ed
1.2
Water/Sewer
1.1
Port Facilities
0.9
Incremental Tax
0.9
Private Higher Ed
0.9
Local General Obligation
0.5
Combined Utilities
0.4
Toll Road
0.1
Top 10 U.S. States
Portfolio (%)
Texas
14.2
California
8.6
Georgia
7.0
Illinois
6.6
Short-Term Investments, Other Assets & Liabilities
6.2
Alabama
5.1
Florida
4.7
Tennessee
4.3
Pennsylvania
4.3
New York
3.8
Kentucky
3.1
Credit Quality
Portfolio (%)
AAA
4.5
AA
36.0
A
40.0
BBB
8.9
Not Rated
4.4
Short-Term Investments, Other Assets & Liabilities
6.2
Maturity
Portfolio (%)
Year 1
27.5
Year 2
20.8
Year 3
11.6
Year 4
17.3
Year 5+
16.5
Short-Term Investments, Other Assets & Liabilities
6.2
Portfolio Managers
Portfolio Managers
David Ashley, CFA
Portfolio Manager and Managing Director
David Ashley is a portfolio manager for Thornburg Investment Management. He joined Thornburg as associate portfolio manager in 2011 and was named portfolio manager in 2019. Dave earned a BS in finance and MBA from the University of Delaware in 2001. He is also a CFA charterholder. Prior to joining Thornburg Investment Management, Dave was a credit analyst for Wilmington…
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Eve Lando, JD
Portfolio Manager and Managing Director
Eve Lando is a portfolio manager for Thornburg Investment Management. She joined Thornburg's municipal team in 2019 as associate portfolio manager and was named portfolio manager in 2020. Eve holds a BA in urban studies from Columbia University and a JD from Brooklyn Law School, with a concentration in business law studies. She has extensive experience in municipal bond research…
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Craig Mauermann, ChFC
Portfolio Manager and Managing Director
Craig Mauermann, ChFC, is a portfolio manager for Thornburg Investment Management. He joined the firm in 2021 as a senior fixed income analyst and was promoted to associate portfolio manager in 2024 and was named portfolio manager in 2025. Craig has extensive municipal research and investment experience. He began his career at Strong Capital Management as an analyst and trader…
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