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Thornburg Strategic Municipal Income Strategy

Strategy Overview
The Strategic Municipal Income Strategy is an actively managed diversified portfolio of municipal bonds with an average effective duration range between zero to ten years. The portfolio can invest up to 50% in below investment grade. 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 May 2009

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 municipal bonds with an average maturity of less than 5 years and average duration range of zero to ten years.
  • Flexible investment approach that employs a relative value framework that operates across geography, sectors, issuers and revenue streams.
  • Relative value philosophy that seeks to minimize changes in its share value while providing investors with tax-exempt income.
Performance

Performance

Returns

(As of 31 Dec 2025)
YTD
1y
3y
5y
10y
Inception
Thornburg Strategic Municipal Income Strategy - Gross (%)
4.86
4.86
5.10
1.85
2.81
5.09
Thornburg Strategic Municipal Income Strategy - Net (%)
4.08
4.08
4.32
1.16
2.11
4.30
ICE BofA U.S. Municipal Securities Index (%)
3.96
3.96
4.01
0.83
2.38
3.66
YTD
1y
3y
5y
10y
Inception
Thornburg Strategic Municipal Income Strategy - Gross (%)
1.94
5.21
5.52
2.29
2.89
5.16
Thornburg Strategic Municipal Income Strategy - Net (%)
1.81
4.43
4.74
1.59
2.18
4.36
ICE BofA U.S. Municipal Securities Index (%)
2.10
4.81
4.54
1.45
2.47
3.75
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Thornburg Strategic Municipal Income Strategy - Gross (%)
4.34
13.79
11.13
-1.60
11.24
3.55
0.88
5.07
1.82
6.57
4.65
2.10
-7.53
6.75
3.71
4.86
Thornburg Strategic Municipal Income Strategy - Net (%)
3.05
12.95
10.31
-2.33
10.42
2.78
0.12
4.29
1.18
5.82
4.02
1.50
-8.08
5.96
2.94
4.08
ICE BofA U.S. Municipal Securities Index (%)
2.25
11.19
7.26
-2.89
9.78
3.55
0.44
5.42
1.04
7.74
5.26
1.83
-9.03
6.52
1.62
3.96
Strategy Facts

Strategy Facts

(As of 28 Feb 2026)
Strategy Assets
$411.5 M
Benchmark
ICE BofA U.S. Municipal Securities Index
eVestment Category
US Municipal Fixed Income - All Duration
Characteristics

Characteristics

Portfolio

(As of 28 Feb 2026)
Portfolio
Benchmark
Number of Holdings
316
Effective Duration
7.1 Yrs
7.2 Yrs
Average Effective Maturity
15.6 Yrs
14.1 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.7%
4.6%
Subject to Alternative Minimum Tax
15.7%
Portfolio

Portfolio

Top Holdings

(As of 28 Feb 2026)
Name
Ticker/Symbol
Weight %
Kentucky Public Energy Authority
74440DDS0
1.4
Kentucky Public Energy Authority
74440DEC4
1.3
Patriots Energy Group Financing Agency
70342PAN4
1.3
California Community Choice Financing Authority
13013JCM6
1.1
Tarrant County Housing Finance Corp.
876390AA3
1.0
Main Street Natural Gas, Inc.
56035DBR2
1.0
Buckeye Tobacco Settlement Financing Authority
118217CZ9
0.9
San Antonio Housing Trust Public Facility Corp.
79626WAA5
0.9
Indiana Finance Authority
45506EPB3
0.8
Chandler Industrial Development Authority
158862CB6
0.8
Exposure Breakdown

Exposure Breakdown

(As of 28 Feb 2026)
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
CCRC/Senior Living
15.3
Prepaid Gas
14.4
Hospital
9.4
9.7
Airport
8.0
5.3
Industrial Development/Pollution Control
6.1
Short-Term Investments, Other Assets & Liabilities
6.0
Multi Family Mortgage
5.5
2.5
Dedicated Tax
4.8
13.5
Charter School
4.3
State General Obligation
3.1
11.4
Single Family Mortgage
2.4
1.9
School District General Obligation
2.1
Local General Obligation
1.9
11.8
Toll Road
1.8
5.2
Public Power
1.8
6.5
State Approp
1.7
Private Higher Ed
1.6
None
1.4
Prepaid Electric
1.3
Public Higher Ed
1.1
Other Transportation
1.1
5.3
Tobacco
0.9
0.4
Other Revenue
0.8
Water/Sewer
0.8
6.3
Incremental Tax
0.6
School District App
0.6
Combined Utilities
0.5
5.5
Land District
0.3
Student Housing
0.2
Port Facilities
0.1
Student Loan
0.1
Sector Allocation
Portfolio (%)
CCRC/Senior Living
15.3
Prepaid Gas
14.4
Hospital
9.4
Airport
8.0
Industrial Development/Pollution Control
6.1
Short-Term Investments, Other Assets & Liabilities
6.0
Multi Family Mortgage
5.5
Dedicated Tax
4.8
Charter School
4.3
State General Obligation
3.1
Single Family Mortgage
2.4
School District General Obligation
2.1
Local General Obligation
1.9
Toll Road
1.8
Public Power
1.8
State Approp
1.7
Private Higher Ed
1.6
None
1.4
Prepaid Electric
1.3
Public Higher Ed
1.1
Other Transportation
1.1
Tobacco
0.9
Other Revenue
0.8
Water/Sewer
0.8
Incremental Tax
0.6
School District App
0.6
Combined Utilities
0.5
Land District
0.3
Student Housing
0.2
Port Facilities
0.1
Student Loan
0.1
Top 10 U.S. States
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Illinois
10.1
4.2
Texas
7.9
9.7
Florida
7.2
3.3
Short-Term Investments, Other Assets & Liabilities
6.0
Georgia
4.7
2.8
Pennsylvania
4.7
3.6
California
4.7
17.8
Alabama
4.4
2.8
New York
4.3
19.8
Kentucky
3.6
1.0
Colorado
3.4
2.0
Top 10 U.S. States
Portfolio (%)
Illinois
10.1
Texas
7.9
Florida
7.2
Short-Term Investments, Other Assets & Liabilities
6.0
Georgia
4.7
Pennsylvania
4.7
California
4.7
Alabama
4.4
New York
4.3
Kentucky
3.6
Colorado
3.4
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
2.6
14.0
AA
23.4
57.2
A
31.2
23.1
BBB
14.7
5.7
BB
2.4
Credit Quality
Portfolio (%)
AAA
2.6
AA
23.4
A
31.2
BBB
14.7
BB
2.4
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
Year 1-2
8.0
5.1
Year 3-4
3.8
10.2
Year 5-6
11.4
9.3
Year 7-8
3.3
9.3
Year 9-10
5.8
8.7
Year 11-12
4.3
5.5
Year 13-14
2.4
4.8
Year 15-16
3.4
5.1
Year 17+
51.2
41.9
Short-Term Investments, Other Assets & Liabilities
6.0
Maturity
Portfolio (%)
Year 1-2
8.0
Year 3-4
3.8
Year 5-6
11.4
Year 7-8
3.3
Year 9-10
5.8
Year 11-12
4.3
Year 13-14
2.4
Year 15-16
3.4
Year 17+
51.2
Short-Term Investments, Other Assets & Liabilities
6.0
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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