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Thornburg Short Duration Municipal SMA

Strategy Overview
The strategy actively invests in high-quality municipal bonds with maturities of less than five years, emphasizing preservation of capital and tax-exempt income. Utilizing a disciplined, bottom-up approach, it seeks relative value opportunities across sectors, geographies, and maturities. The team applies rigorous credit research, portfolio construction, and risk oversight, leveraging a flexible, generalist model to exploit inefficiencies and optimize income generation while maintaining a low duration profile to minimize interest rate sensitivity.
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?

  • Tax-Exempt Income with Lower Volatility – Seeks to provide attractive tax-exempt income while maintaining low interest rate exposure through a diversified, high-quality portfolio of short-term municipal bonds.
  • Stable Value for Short Investment Horizons – Emphasizes capital preservation, making it an appealing option for investors with shorter investment horizons, while maintaining the flexibility to quickly capitalize on rising short-term interest rates.
  • Active Duration and Risk Management – Actively manages duration and credit quality to hedge against interest rate fluctuations and preserve capital, with a focus on maintaining high credit standards.
Key Facts

Key Facts

(As of 30 Apr 2025)
Assets
$2.6 M
Benchmark
ICE BofA 1-3 Year U.S. Municipal Securities Index
Number of Holdings
132
eVestment Category
US Municipal Fixed Income - Short Duration
Performance

Performance

Returns

(As of 31 Mar 2025)
YTD
1y
3y
5y
10y
Inception
Thornburg Short Duration Municipal Strategy - Gross (%)
1.12
4.01
3.04
1.87
1.64
1.58
Thornburg Short Duration Municipal Strategy - Net (%)
1.02
3.60
2.65
1.51
1.28
1.21
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
1.01
3.62
2.43
1.50
1.38
1.32
YTD
1y
3y
5y
10y
Inception
Thornburg Short Duration Municipal Strategy - Gross (%)
1.01
3.94
3.17
1.90
1.63
1.56
Thornburg Short Duration Municipal Strategy - Net (%)
0.88
3.53
2.79
1.54
1.27
1.19
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
0.88
3.64
2.61
1.42
1.37
1.30
2019
2020
2021
2022
2023
2024
Thornburg Short Duration Municipal Strategy - Gross (%)
2.73
1.66
0.44
-1.48
4.27
3.20
Thornburg Short Duration Municipal Strategy - Net (%)
2.37
1.34
0.09
-1.84
3.89
2.80
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
2.88
2.16
0.34
-2.03
3.35
2.63
Characteristics

Characteristics

Portfolio

(As of 30 Apr 2025)
Portfolio
Benchmark
Effective Duration
1.4 Yrs
1.6 Yrs
Average Effective Maturity
1.8 Yrs
1.9 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.2%
4.5%
Subject to Alternative Minimum Tax
13.7%
Portfolio

Portfolio

Top Holdings

(As of 31 Mar 2025)
Name
Ticker/Symbol
Weight %
PEFA, Inc.
70556CAB0
2.6
Indiana Finance Authority
45505RBN4
2.6
Massachusetts Development Finance Agency
57584YPF0
2.2
Kentucky Public Energy Authority
74440DFN9
2.1
Tennergy Corp./TN
880397CJ1
1.8
Travis County Housing Finance Corp.
89438UBM9
1.8
City of Los Angeles Department of Airports
5444452K4
1.8
Harris County Cultural Education Facilities Finance Corp.
414009NF3
1.8
Knox County Health Educational & Housing Facility Board
499652AM7
1.7
California Municipal Finance Authority
13048RAF4
1.7
Exposure Breakdown

Exposure Breakdown

(As of 30 Apr 2025)
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Multi Family Mortgage
23.4
5.8
Industrial Development/Pollution Control
16.8
Gas
10.5
Hospital
10.2
4.5
School District General Obligation
6.2
Public Power
4.1
4.3
US Treasuries
3.6
Airport
3.5
2.6
Local General Obligation
3.2
14.1
School District App
2.6
Dedicated Tax
2.4
7.8
Lifecare
2.2
Water/Sewer
2.1
4.3
Combined Utilities
1.8
7.0
Incremental Tax
1.5
State General Obligation
1.3
18.1
Appropriation
1.2
4.5
Higher Education
1.1
Port Facilities
0.9
Prepaid Utility
0.9
Other Transportation
0.8
4.8
Utilities
0.3
Prerefunded / Escrow to Maturity
0.2
Toll Road
0.1
3.1
Cash & Cash Equivalents
-0.7
Sector Allocation
Portfolio (%)
Multi Family Mortgage
23.4
Industrial Development/Pollution Control
16.8
Gas
10.5
Hospital
10.2
School District General Obligation
6.2
Public Power
4.1
US Treasuries
3.6
Airport
3.5
Local General Obligation
3.2
School District App
2.6
Dedicated Tax
2.4
Lifecare
2.2
Water/Sewer
2.1
Combined Utilities
1.8
Incremental Tax
1.5
State General Obligation
1.3
Appropriation
1.2
Higher Education
1.1
Port Facilities
0.9
Prepaid Utility
0.9
Other Transportation
0.8
Utilities
0.3
Prerefunded / Escrow to Maturity
0.2
Toll Road
0.1
Cash & Cash Equivalents
-0.7
Top 10 U.S. States
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Texas
14.5
8.7
California
7.9
16.2
Illinois
7.6
4.6
Florida
6.2
2.7
Pennsylvania
5.0
3.2
Tennessee
4.6
1.0
Kentucky
4.2
1.8
Wisconsin
3.8
2.1
US
3.6
Indiana
3.5
0.7
Cash
-0.7
Top 10 U.S. States
Portfolio (%)
Texas
14.5
California
7.9
Illinois
7.6
Florida
6.2
Pennsylvania
5.0
Tennessee
4.6
Kentucky
4.2
Wisconsin
3.8
US
3.6
Indiana
3.5
Cash
-0.7
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
27.7
19.5
AA
25.6
55.4
A
33.4
22.1
BBB
8.9
3.0
Not Rated
5.1
Cash & Cash Equivalents
-0.7
Credit Quality
Portfolio (%)
AAA
27.7
AA
25.6
A
33.4
BBB
8.9
Not Rated
5.1
Cash & Cash Equivalents
-0.7
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
Year 1
36.5
2.0
Year 2
23.3
51.0
Year 3
22.3
46.0
Year 4
6.4
Year 5+
12.1
Cash
-0.7
Maturity
Portfolio (%)
Year 1
36.5
Year 2
23.3
Year 3
22.3
Year 4
6.4
Year 5+
12.1
Cash
-0.7
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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Literature

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