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 30 Sep 2026)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 30 Sep 2026)Benchmark
ICE BofA 1-3 Year U.S. Municipal Securities Index
eVestment Category
US Municipal Fixed Income - Short Duration
Characteristics
Characteristics
Portfolio
(As of 30 Sep 2026)Portfolio
Benchmark
Number of Holdings
108
—
Effective Duration
2.0 Yrs
1.7 Yrs
Average Effective Maturity
2.4 Yrs
1.9 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.4%
4.6%
Subject to Alternative Minimum Tax
15.3%
—
Portfolio
Portfolio
Top Holdings
(As of 30 Sep 2026)Name
Ticker/Symbol
Weight %
Main Street Natural Gas, Inc.
56035DHZ8
2.6
Travis County Housing Finance Corp.
89438UBM9
2.3
City of Los Angeles Department of Airports
5444452K4
2.2
Chicago O'Hare International Airport
1675937K2
2.0
Halifax County Industrial Development Authority
40579PAE1
1.7
Arizona Industrial Development Authority
04062PCD1
1.6
Energy Southeast A Cooperative District
292723DU4
1.6
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd
592113CV4
1.6
Chicago O'Hare International Airport
1675937F3
1.5
Bartow County Development Authority
069643BN3
1.4
Exposure Breakdown
Exposure Breakdown
(As of 30 Sep 2026)Sector Allocation
Portfolio (%)
Multi Family Mortgage
15.9
Industrial Development/Pollution Control
14.8
Prepaid Gas
10.1
Short-Term Investments, Other Assets & Liabilities
8.3
CCRC/Senior Living
7.6
Airport
7.4
Hospital
7.3
School District App
5.6
School District General Obligation
4.5
Public Power
3.3
Prepaid Electric
2.8
Water/Sewer
1.8
State General Obligation
1.6
Private Higher Ed
1.6
Local Approp
1.5
Charter School
1.5
Incremental Tax
1.1
Dedicated Tax
1.1
Port Facilities
1.1
Other Revenue
1.0
Toll Road
0.1
Top 10 U.S. States
Portfolio (%)
Texas
13.5
Short-Term Investments, Other Assets & Liabilities
8.3
Georgia
8.2
Illinois
7.9
Alabama
6.1
California
6.0
New York
5.2
Arizona
4.4
Florida
4.2
Oklahoma
4.2
Pennsylvania
3.5
Credit Quality
Portfolio (%)
AAA
4.1
AA
31.9
A
34.2
BBB
13.1
Not Rated
8.5
Short-Term Investments, Other Assets & Liabilities
8.3
Maturity
Portfolio (%)
Year 1
25.4
Year 2
10.7
Year 3
13.6
Year 4
13.5
Year 5+
28.5
Short-Term Investments, Other Assets & Liabilities
8.3
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…
Learn More
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…
Learn More
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…
Learn More
Literature
More Insights
Fixed Income
Rates up, Credit Steady: Municipal Yields Hit 15-Year Highs
Municipal bond yields climbed to 15-year highs in the third quarter of 2026, driven by rising rates and record supply rather than weakening credit. Tax-equivalent yields above 8% for top-bracket investors are levels many have not seen in their careers and, in our view, merit a closer look from long-term investors.
Fixed Income
Beyond the Rate Debate: Navigating Today’s Fixed Income Signals
Bond markets continue searching for a storyline that sticks. Today’s challenge is determining where investors are being fairly compensated for risk and where valuations may be less forgiving. Hear Thornburg Portfolio Managers Christian Hoffmann, Ali Hassan, and Lon Erickson as they unpack the forces shaping fixed income markets today, from AI-driven debt issuance to tight credit spreads to a rates market sending mixed signals.
Markets & Economy
Fortune Favors the Disciplined: The Margin for Error Remains Low
We are surprised that so many fixed income asset classes remain priced for perfection. To navigate prospective dislocations, a disciplined, security-specific focus and relative value process is essential.