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Thornburg Municipal Total Return SMA

Strategy Overview
The Municipal Total Return Strategy is an actively managed portfolio that primarily invests in investment grade, intermediate municipal bonds, as well as shares of a completion fund1 managed by Thornburg. The completion fund provides access to securities across the credit and maturity spectrum that are difficult, or not feasible, to include in a separately managed account. The strategy seeks to provide tax-exempt income and total return.
Strategy Inception Date
1 Sep 2023

Portfolio Managers

Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Overview

Overview

Why Invest in This Strategy?

  • Over 40 years of experience managing municipal portfolios for institutions and individuals.
  • 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.
  • Relative value philosophy that seeks to maximize tax-exempt income and provide capital appreciation in its share value. The strategy focuses on identifying attractive value across the municipal bond market. We apply a strict discipline of fundamental credit research and strive to produce an attractive dividend while avoiding the securities that are the most vulnerable to large market swings.
Key Facts

Key Facts

(As of 31 Jul 2025)
Assets
$14.1 M
Benchmark
ICE BofA U.S. Municipal Securities Index
Number of Holdings
83
Performance

Performance

Returns

(As of 30 Jun 2025)
YTD
1y
Inception
Thornburg Municipal Total Return Strategy - Gross (%)
0.51
2.14
4.15
Thornburg Municipal Total Return Strategy - Net (%)
0.40
1.92
3.92
ICE BofA U.S. Municipal Securities Index (%)
-0.61
1.05
3.03
YTD
1y
Inception
Thornburg Municipal Total Return Strategy - Gross (%)
0.24
0.86
3.83
Thornburg Municipal Total Return Strategy - Net (%)
0.14
0.65
3.60
ICE BofA U.S. Municipal Securities Index (%)
-0.89
-0.10
2.74
2024
Thornburg Municipal Total Return Strategy - Gross (%)
2.99
Thornburg Municipal Total Return Strategy - Net (%)
2.75
ICE BofA U.S. Municipal Securities Index (%)
1.62
Characteristics

Characteristics

Portfolio

(As of 31 Jul 2025)
Portfolio
Benchmark
Effective Duration
6.6 Yrs
7.6 Yrs
Average Effective Maturity
11.2 Yrs
14.0 Yrs
Weighted Average Coupon
4.8%
4.5%
Portfolio
Benchmark
Subject to Alternative Minimum Tax
8.1%
Weighted Average Price
$100.79
Portfolio

Portfolio

Top Holdings

(As of 30 Jun 2025)
Name
Ticker/Symbol
Weight %
Maine Health & Higher Educational Facilities Authority
56042SBS8
5.4
City of Houston TX Airport System Revenue
442349GT7
5.4
Colorado Health Facilities Authority
19648FKD5
5.4
Corpus Christi Independent School District
220148BM1
4.9
Cumberland Valley School District
230822TV0
4.8
Main Street Natural Gas, Inc.
56035DFQ0
4.8
County of Utah UT
917393DF4
4.7
City of Port Arthur TX
733488X96
4.0
Providence Public Building Authority
74381MDL6
3.4
West Lafayette Redevelopment Authority
95370EAU5
3.0
Exposure Breakdown

Exposure Breakdown

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

Portfolio

Benchmark

0%
5%
10%
15%
20%
Hospital
12.4
9.5
Other Revenue
10.8
School District General Obligation
9.6
Industrial Development/Pollution Control
8.1
Airport
7.1
5.3
Incremental Tax
5.9
Gas
5.6
Local General Obligation
5.5
11.7
Charter School
5.3
Single Family Mortgage
4.5
1.9
Multi Family Mortgage
3.7
2.3
Appropriation
3.4
3.3
Lifecare
3.2
Water/Sewer
2.9
6.4
Cash & Cash Equivalents
2.6
Public Power
1.9
5.8
Toll Road
1.5
4.9
Dedicated Tax
0.9
13.5
Prepaid Utility
0.9
Higher Education
0.9
None
0.6
Unassigned
0.5
School District App
0.5
State General Obligation
0.5
12.2
Student Loan
0.4
Tobacco
0.4
0.4
Sector Allocation
Portfolio (%)
Hospital
12.4
Other Revenue
10.8
School District General Obligation
9.6
Industrial Development/Pollution Control
8.1
Airport
7.1
Incremental Tax
5.9
Gas
5.6
Local General Obligation
5.5
Charter School
5.3
Single Family Mortgage
4.5
Multi Family Mortgage
3.7
Appropriation
3.4
Lifecare
3.2
Water/Sewer
2.9
Cash & Cash Equivalents
2.6
Public Power
1.9
Toll Road
1.5
Dedicated Tax
0.9
Prepaid Utility
0.9
Higher Education
0.9
None
0.6
Unassigned
0.5
School District App
0.5
State General Obligation
0.5
Student Loan
0.4
Tobacco
0.4
Top 10 U.S. States
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Texas
20.5
8.8
Indiana
6.7
0.8
Georgia
6.5
2.9
Pennsylvania
6.5
3.8
Utah
6.3
0.7
Colorado
5.9
2.2
Maine
5.4
0.1
New Mexico
4.8
0.3
Ohio
4.4
1.9
Alabama
3.9
2.2
Cash & Cash Equivalents
2.6
Top 10 U.S. States
Portfolio (%)
Texas
20.5
Indiana
6.7
Georgia
6.5
Pennsylvania
6.5
Utah
6.3
Colorado
5.9
Maine
5.4
New Mexico
4.8
Ohio
4.4
Alabama
3.9
Cash & Cash Equivalents
2.6
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
10.9
13.6
AA
49.9
56.7
A
22.0
24.0
BBB
8.8
5.7
Below Invest. Grade
0.3
Not Rated
5.5
Cash & Cash Equivalents
2.6
Credit Quality
Portfolio (%)
AAA
10.9
AA
49.9
A
22.0
BBB
8.8
Below Invest. Grade
0.3
Not Rated
5.5
Cash & Cash Equivalents
2.6
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
Year 1
6.1
1.0
Year 2
6.2
5.0
Year 3
9.0
5.0
Year 4
6.0
5.0
Year 5
4.9
5.0
Year 6
1.4
4.6
Year 7
4.5
4.7
Year 8
21.9
4.6
Year 9
4.1
3.8
Year 10+
32.8
57.9
Cash
2.6
Maturity
Portfolio (%)
Year 1
6.1
Year 2
6.2
Year 3
9.0
Year 4
6.0
Year 5
4.9
Year 6
1.4
Year 7
4.5
Year 8
21.9
Year 9
4.1
Year 10+
32.8
Cash
2.6
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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Portfolio managers are supported by the entire Thornburg investment team.

Literature

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