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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 Sep 2026)
Benchmark
ICE BofA 1-3 Year U.S. Municipal Securities Index
eVestment Category
US Municipal Fixed Income - Short Duration
Performance

Performance

Returns

(As of 30 Sep 2026)
YTD
1y
3y
5y
10y
Inception
Composite - Gross (%)
0.25
0.93
3.49
2.08
1.83
1.66
Composite - Net (%)
-0.05
0.53
3.08
1.69
1.46
1.29
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
0.23
0.76
3.12
1.56
1.54
1.40
YTD
1y
3y
5y
10y
Inception
Composite - Gross (%)
0.25
0.93
3.49
2.08
1.83
1.66
Composite - Net (%)
-0.05
0.53
3.08
1.69
1.46
1.29
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
0.23
0.76
3.12
1.56
1.54
1.40
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Composite - Gross (%)
0.72
1.60
1.68
2.73
1.66
0.44
-1.48
4.27
3.20
4.26
Composite - Net (%)
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 (%)
0.33
0.99
1.76
2.88
2.16
0.34
-2.03
3.35
2.63
3.76
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 (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Multi Family Mortgage
15.9
7.4
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
2.8
Hospital
7.3
4.8
School District App
5.6
—
School District General Obligation
4.5
—
Public Power
3.3
7.5
Prepaid Electric
2.8
—
Water/Sewer
1.8
4.0
State General Obligation
1.6
16.4
Private Higher Ed
1.6
—
Local Approp
1.5
—
Charter School
1.5
—
Incremental Tax
1.1
—
Dedicated Tax
1.1
8.4
Port Facilities
1.1
—
Other Revenue
1.0
—
Toll Road
0.1
2.9
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 (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Texas
13.5
8.6
Short-Term Investments, Other Assets & Liabilities
8.3
—
Georgia
8.2
4.4
Illinois
7.9
4.2
Alabama
6.1
3.5
California
6.0
17.5
New York
5.2
14.9
Arizona
4.4
2.1
Florida
4.2
2.7
Oklahoma
4.2
0.7
Pennsylvania
3.5
3.0
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 (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
4.1
13.8
AA
31.9
58.1
A
34.2
24.5
BBB
13.1
3.6
Not Rated
8.5
—
Short-Term Investments, Other Assets & Liabilities
8.3
—
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 (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
Year 1
25.4
3.4
Year 2
10.7
50.1
Year 3
13.6
46.5
Year 4
13.5
0.0
Year 5+
28.5
0.0
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…
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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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