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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 Jan 2000

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 Mar 2025)
YTD
1y
3y
5y
10y
Inception
Thornburg Strategic Municipal Income Strategy - Gross (%)
0.53
3.36
2.84
2.20
2.63
5.06
Thornburg Strategic Municipal Income Strategy - Net (%)
0.34
2.59
2.12
1.53
1.92
4.26
ICE BofA U.S. Municipal Securities Index (%)
-0.49
1.44
1.46
1.12
2.18
3.55
YTD
1y
3y
5y
10y
Inception
Thornburg Strategic Municipal Income Strategy - Gross (%)
0.21
3.76
3.20
1.97
2.67
4.98
Thornburg Strategic Municipal Income Strategy - Net (%)
-0.10
2.99
2.46
1.29
1.97
4.19
ICE BofA U.S. Municipal Securities Index (%)
-1.37
1.89
1.64
0.61
2.17
3.46
2019
2020
2021
2022
2023
2024
Thornburg Strategic Municipal Income Strategy - Gross (%)
6.57
4.65
2.10
-7.53
6.75
3.71
Thornburg Strategic Municipal Income Strategy - Net (%)
5.82
4.02
1.50
-8.08
5.96
2.94
ICE BofA U.S. Municipal Securities Index (%)
7.74
5.26
1.83
-9.03
6.52
1.62
Strategy Facts

Strategy Facts

(As of 31 May 2025)
Strategy Assets
$355.3 M
Benchmark
ICE BofA U.S. Municipal Securities Index
Number of Holdings
286
eVestment Category
US Municipal Fixed Income - All Duration
Characteristics

Characteristics

Portfolio

(As of 31 May 2025)
Portfolio
Benchmark
Effective Duration
6.6 Yrs
7.4 Yrs
Average Effective Maturity
13.4 Yrs
14.1 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.6%
4.5%
Subject to Alternative Minimum Tax
16.3%
Portfolio

Portfolio

Top Holdings

(As of 31 May 2025)
Name
Ticker/Symbol
Weight %
Kentucky Public Energy Authority
74440DDS0
1.5
Kentucky Public Energy Authority
74440DEC4
1.5
Patriots Energy Group Financing Agency
70342PAN4
1.5
Tarrant County Housing Finance Corp.
876390AA3
1.1
Main Street Natural Gas, Inc.
56035DBR2
1.1
California Community Choice Financing Authority
13013JCM6
1.1
City of Chicago IL
167486ZY8
1.0
San Antonio Housing Trust Public Facility Corp.
79626WAA5
1.0
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd
592113CN2
1.0
Main Street Natural Gas, Inc.
56035DGB2
0.9
Exposure Breakdown

Exposure Breakdown

(As of 31 May 2025)
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Gas
13.6
Lifecare
10.8
Hospital
10.0
9.4
Multi Family Mortgage
8.8
2.3
Industrial Development/Pollution Control
8.5
Airport
7.7
5.3
US Treasuries
4.1
Single Family Mortgage
3.6
1.8
Dedicated Tax
3.4
13.7
Higher Education
3.1
Cash & Cash Equivalents
3.0
State General Obligation
2.9
12.3
Local General Obligation
2.9
11.5
Charter School
2.7
Appropriation
2.3
3.3
Toll Road
1.6
5.0
Public Power
1.5
5.6
Other Transportation
1.5
5.7
Other Revenue
1.5
School District General Obligation
1.1
Incremental Tax
1.0
Combined Utilities
0.8
5.1
Tobacco
0.7
0.5
Prepaid Utility
0.7
Student Loan
0.4
Resource Recovery
0.3
Prerefunded / Escrow to Maturity
0.3
School District App
0.3
Special Tax
0.3
Water/Sewer
0.3
6.5
Student Housing
0.3
Port Facilities
0.1
Sector Allocation
Portfolio (%)
Gas
13.6
Lifecare
10.8
Hospital
10.0
Multi Family Mortgage
8.8
Industrial Development/Pollution Control
8.5
Airport
7.7
US Treasuries
4.1
Single Family Mortgage
3.6
Dedicated Tax
3.4
Higher Education
3.1
Cash & Cash Equivalents
3.0
State General Obligation
2.9
Local General Obligation
2.9
Charter School
2.7
Appropriation
2.3
Toll Road
1.6
Public Power
1.5
Other Transportation
1.5
Other Revenue
1.5
School District General Obligation
1.1
Incremental Tax
1.0
Combined Utilities
0.8
Tobacco
0.7
Prepaid Utility
0.7
Student Loan
0.4
Resource Recovery
0.3
Prerefunded / Escrow to Maturity
0.3
School District App
0.3
Special Tax
0.3
Water/Sewer
0.3
Student Housing
0.3
Port Facilities
0.1
Top 10 U.S. States
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Illinois
9.4
4.4
California
7.9
18.0
Texas
7.1
8.7
Florida
5.7
3.6
Pennsylvania
4.4
3.7
Alabama
4.3
2.2
US
4.1
Arizona
4.0
1.3
New Jersey
4.0
3.6
Michigan
3.8
1.5
Cash
3.0
Top 10 U.S. States
Portfolio (%)
Illinois
9.4
California
7.9
Texas
7.1
Florida
5.7
Pennsylvania
4.4
Alabama
4.3
US
4.1
Arizona
4.0
New Jersey
4.0
Michigan
3.8
Cash
3.0
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
5.5
14.5
AA
29.4
55.3
A
31.9
24.1
BBB
14.9
6.0
BB
1.1
Credit Quality
Portfolio (%)
AAA
5.5
AA
29.4
A
31.9
BBB
14.9
BB
1.1
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
Year 1-2
11.9
5.0
Year 3-4
6.8
10.0
Year 5-6
7.9
9.5
Year 7-8
10.0
9.2
Year 9-10
5.1
7.3
Year 11-12
4.8
6.0
Year 13-14
3.2
5.0
Year 15-16
4.8
6.0
Year 17+
42.0
40.0
Cash
3.0
Maturity
Portfolio (%)
Year 1-2
11.9
Year 3-4
6.8
Year 5-6
7.9
Year 7-8
10.0
Year 9-10
5.1
Year 11-12
4.8
Year 13-14
3.2
Year 15-16
4.8
Year 17+
42.0
Cash
3.0
Portfolio Managers

Portfolio Managers

David Ashley, CFA

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

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

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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