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Thornburg Intermediate Term Municipal SMA

Strategy Overview
The Intermediary Term Municipal Strategy is an actively managed diversified portfolio of municipal bonds with an average maturity of three to 10 years and average duration range of 4.5 to 5.5 years. All bonds are investment grade at time of purchase. 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 Nov 1991

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 intermediate-term investment grade municipal bonds with an average maturity of three to 10 years and duration of four to six years.
  • 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 while minimizing changes in its share value. The strategy focuses on identifying attractive value in the investment-grade municipal bond market. We apply a strict discipline of fundamental credit research and strive to produce an attractive dividend while avoiding the long maturities that are most vulnerable to interest-rate swings.
Key Facts

Key Facts

(As of 31 May 2025)
Assets
$828.9 M
Benchmark
ICE BofA 3-15 Year U.S. Municipal Securities Index
Number of Holdings
510
eVestment Category
US Municipal Fixed Income - Intermediate Duration
Performance

Performance

Returns

(As of 31 Mar 2025)
YTD
1y
3y
5y
10y
Inception
Thornburg Intermediate Term Municipal Strategy - Gross (%)
0.53
2.27
2.69
1.92
2.41
4.85
Thornburg Intermediate Term Municipal Strategy - Net (%)
0.46
1.92
2.31
1.53
2.00
4.18
ICE BofA 3-15 Year U.S. Municipal Securities Index (%)
0.18
1.49
1.89
1.23
2.05
YTD
1y
3y
5y
10y
Inception
Thornburg Intermediate Term Municipal Strategy - Gross (%)
0.41
3.17
2.91
1.62
2.46
4.82
Thornburg Intermediate Term Municipal Strategy - Net (%)
0.26
2.81
2.52
1.23
2.05
4.16
ICE BofA 3-15 Year U.S. Municipal Securities Index (%)
0.21
3.32
2.19
0.80
2.13
2019
2020
2021
2022
2023
2024
Thornburg Intermediate Term Municipal Strategy - Gross (%)
6.65
4.65
1.57
-5.57
6.10
2.11
Thornburg Intermediate Term Municipal Strategy - Net (%)
6.21
4.24
1.17
-5.94
5.68
1.73
ICE BofA 3-15 Year U.S. Municipal Securities Index (%)
7.01
4.96
0.94
-6.64
5.41
0.99
Characteristics

Characteristics

Portfolio

(As of 31 May 2025)
Portfolio
Benchmark
Effective Duration
6.1 Yrs
5.4 Yrs
Average Effective Maturity
10.8 Yrs
8.0 Yrs
Weighted Average Coupon
4.6%
4.6%
Portfolio
Benchmark
Subject to Alternative Minimum Tax
15.0%
Weighted Average Price
$101.52
Portfolio

Portfolio

Top Holdings

(As of 31 May 2025)
Name
Ticker/Symbol
Weight %
Kentucky Public Energy Authority
74440DEC4
1.5
Wisconsin Housing & Economic Development Authority Home Ownership Revenue
97689QWB8
1.4
Black Belt Energy Gas District
09182TEN3
1.3
Tennessee Energy Acquisition Corp.
88044TAL3
1.2
Patriots Energy Group Financing Agency
70342PAN4
1.0
Pennsylvania Economic Development Financing Authority
708692BP2
1.0
Colorado Health Facilities Authority
19648FKS2
0.9
Wise County Industrial Development Authority
977228AF2
0.9
Central Valley Energy Authority
15569DAA0
0.8
Main Street Natural Gas, Inc.
56035DGB2
0.8
Exposure Breakdown

Exposure Breakdown

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

Portfolio

Benchmark

0%
5%
10%
15%
20%
Gas
15.2
Hospital
9.6
6.7
Airport
8.8
3.6
Single Family Mortgage
8.6
0.2
US Treasuries
6.7
Industrial Development/Pollution Control
6.6
Multi Family Mortgage
6.0
2.2
Appropriation
5.3
3.5
Dedicated Tax
5.1
14.8
State General Obligation
5.0
16.9
Local General Obligation
3.8
9.2
School District General Obligation
3.3
Lifecare
3.1
Public Power
2.5
8.0
Other Transportation
1.4
5.6
School District App
1.2
Combined Utilities
1.2
7.9
Higher Education
1.2
Water/Sewer
1.0
5.3
Incremental Tax
0.7
Prerefunded / Escrow to Maturity
0.7
Toll Road
0.7
4.3
Port Facilities
0.6
Other Revenue
0.6
Charter School
0.5
Student Housing
0.4
Student Loan
0.2
Prepaid Utility
0.2
Electric
0.1
Utilities
0.1
Transit Revenue
0.1
Cash & Cash Equivalents
-0.3
Sector Allocation
Portfolio (%)
Gas
15.2
Hospital
9.6
Airport
8.8
Single Family Mortgage
8.6
US Treasuries
6.7
Industrial Development/Pollution Control
6.6
Multi Family Mortgage
6.0
Appropriation
5.3
Dedicated Tax
5.1
State General Obligation
5.0
Local General Obligation
3.8
School District General Obligation
3.3
Lifecare
3.1
Public Power
2.5
Other Transportation
1.4
School District App
1.2
Combined Utilities
1.2
Higher Education
1.2
Water/Sewer
1.0
Incremental Tax
0.7
Prerefunded / Escrow to Maturity
0.7
Toll Road
0.7
Port Facilities
0.6
Other Revenue
0.6
Charter School
0.5
Student Housing
0.4
Student Loan
0.2
Prepaid Utility
0.2
Electric
0.1
Utilities
0.1
Transit Revenue
0.1
Cash & Cash Equivalents
-0.3
Top 10 U.S. States
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Illinois
12.2
4.8
Texas
7.6
6.6
US
6.7
Pennsylvania
6.3
3.2
California
5.7
20.0
Alabama
5.6
3.4
New York
4.5
20.2
Georgia
4.3
3.6
New Jersey
4.2
3.9
Indiana
3.4
0.6
Cash
-0.3
Top 10 U.S. States
Portfolio (%)
Illinois
12.2
Texas
7.6
US
6.7
Pennsylvania
6.3
California
5.7
Alabama
5.6
New York
4.5
Georgia
4.3
New Jersey
4.2
Indiana
3.4
Cash
-0.3
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
10.9
14.1
AA
40.4
55.9
A
38.7
25.0
BBB
6.7
5.1
Not Rated
3.7
Cash & Cash Equivalents
-0.3
Credit Quality
Portfolio (%)
AAA
10.9
AA
40.4
A
38.7
BBB
6.7
Not Rated
3.7
Cash & Cash Equivalents
-0.3
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
Year 1-2
14.6
Year 3-4
4.4
12.0
Year 5-6
8.4
21.0
Year 7-8
11.3
20.5
Year 9-10
7.2
16.3
Year 11-12
9.5
14.0
Year 13-14
6.1
11.0
Year 15-16
7.5
5.0
Year 17+
31.4
Cash
-0.3
Maturity
Portfolio (%)
Year 1-2
14.6
Year 3-4
4.4
Year 5-6
8.4
Year 7-8
11.3
Year 9-10
7.2
Year 11-12
9.5
Year 13-14
6.1
Year 15-16
7.5
Year 17+
31.4
Cash
-0.3
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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