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Thornburg Limited Term Municipal SMA

Strategy Overview
The Limited Term Municipal Strategy is an actively managed diversified portfolio of municipal bonds with an average maturity of less than five years and average duration range of 2.5 to 3.5 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 Jan 1985

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 investment-grade municipal bonds with an average maturity of less than five years and average duration around two to three 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.
  • High-quality strategy that seeks to maximize tax-exempt income while minimizing changes in its share value.
Key Facts

Key Facts

(As of 31 Oct 2025)
Assets
$299.6 M
Benchmark
ICE BofA 1-10 Year U.S. Municipal Securities Index
eVestment Category
US Municipal Fixed Income - Short Duration
Performance

Performance

Returns

(As of 30 Sep 2025)
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Municipal Strategy - Gross (%)
4.46
3.70
4.64
1.57
2.06
5.04
Thornburg Limited Term Municipal Strategy - Net (%)
4.21
3.37
4.35
1.30
1.79
4.31
ICE BofA 1-10 Year U.S. Municipal Securities Index (%)
4.19
3.37
4.31
1.31
1.98
Bloomberg 5-Year Municipal Bond Index (%)
4.51
3.36
4.33
1.09
1.94
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Municipal Strategy - Gross (%)
4.82
5.04
4.81
1.66
2.07
5.03
Thornburg Limited Term Municipal Strategy - Net (%)
4.54
4.70
4.51
1.38
1.79
4.31
ICE BofA 1-10 Year U.S. Municipal Securities Index (%)
4.52
4.75
4.48
1.41
1.97
Bloomberg 5-Year Municipal Bond Index (%)
4.50
4.43
4.41
1.13
1.88
2019
2020
2021
2022
2023
2024
Thornburg Limited Term Municipal Strategy - Gross (%)
4.62
3.65
0.46
-4.39
4.93
1.95
Thornburg Limited Term Municipal Strategy - Net (%)
4.33
3.38
0.20
-4.64
4.68
1.64
ICE BofA 1-10 Year U.S. Municipal Securities Index (%)
5.28
3.81
0.48
-4.61
4.28
1.58
Bloomberg 5-Year Municipal Bond Index (%)
5.45
4.29
0.34
-5.26
4.31
1.10
Characteristics

Characteristics

Portfolio

(As of 31 Oct 2025)
Portfolio
Benchmark
Number of Holdings
779
Effective Duration
3.4 Yrs
3.8 Yrs
Average Effective Maturity
5.0 Yrs
5.2 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.7%
4.7%
Subject to Alternative Minimum Tax
10.0%
Weighted Average Price
$104.72
Portfolio

Portfolio

Top Holdings

(As of 30 Sep 2025)
Name
Ticker/Symbol
Weight %
Main Street Natural Gas, Inc.
56035DFT4
2.2
PEFA, Inc.
70556CAB0
2.2
Texas Municipal Gas Acquisition & Supply Corp. III
88256HBG2
2.0
New Jersey Transportation Trust Fund Authority
6461362B6
1.4
Main Street Natural Gas, Inc.
56035DDX7
1.4
Main Street Natural Gas, Inc.
56035DFC1
1.3
Main Street Natural Gas, Inc.
56035DGB2
1.3
State of Illinois
452152Q20
1.2
Tennessee Energy Acquisition Corp.
88044TAL3
1.2
Texas Municipal Gas Acquisition & Supply Corp. III
88256HBF4
1.1
Exposure Breakdown

Exposure Breakdown

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

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Prepaid Gas
21.4
Hospital
12.6
6.7
Industrial Development/Pollution Control
6.4
Dedicated Tax
5.6
11.5
Airport
5.5
3.2
Multi Family Mortgage
5.2
3.1
State General Obligation
4.3
16.4
Short-Term Investments, Other Assets & Liabilities
4.1
School District General Obligation
3.9
Other Transportation
3.8
5.4
Local General Obligation
3.5
10.6
School District App
3.2
Single Family Mortgage
3.1
0.1
State Approp
2.5
Water/Sewer
2.2
4.5
Prepaid Electric
2.0
Public Higher Ed
1.4
None
1.4
Public Power
1.3
9.2
Lifecare
1.2
Toll Road
1.0
3.4
Port Facilities
0.8
Private Higher Ed
0.6
Tobacco
0.5
0.4
Charter School
0.5
Local Approp
0.5
Other Revenue
0.5
Incremental Tax
0.4
Student Housing
0.4
Combined Utilities
0.3
9.4
CCRC/Senior Living
0.1
Appropriation
0.1
3.7
Student Loan
0.1
Unassigned
0.0
Sector Allocation
Portfolio (%)
Prepaid Gas
21.4
Hospital
12.6
Industrial Development/Pollution Control
6.4
Dedicated Tax
5.6
Airport
5.5
Multi Family Mortgage
5.2
State General Obligation
4.3
Short-Term Investments, Other Assets & Liabilities
4.1
School District General Obligation
3.9
Other Transportation
3.8
Local General Obligation
3.5
School District App
3.2
Single Family Mortgage
3.1
State Approp
2.5
Water/Sewer
2.2
Prepaid Electric
2.0
Public Higher Ed
1.4
None
1.4
Public Power
1.3
Lifecare
1.2
Toll Road
1.0
Port Facilities
0.8
Private Higher Ed
0.6
Tobacco
0.5
Charter School
0.5
Local Approp
0.5
Other Revenue
0.5
Incremental Tax
0.4
Student Housing
0.4
Combined Utilities
0.3
CCRC/Senior Living
0.1
Appropriation
0.1
Student Loan
0.1
Unassigned
0.0
Top 10 U.S. States
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Texas
11.3
7.8
Georgia
8.8
4.2
Illinois
8.3
4.5
California
5.9
19.4
New York
5.6
16.8
Pennsylvania
5.5
3.1
Short-Term Investments, Other Assets & Liabilities
4.1
Florida
3.9
2.3
Alabama
3.9
4.5
New Jersey
3.9
3.7
Tennessee
3.3
1.3
Top 10 U.S. States
Portfolio (%)
Texas
11.3
Georgia
8.8
Illinois
8.3
California
5.9
New York
5.6
Pennsylvania
5.5
Short-Term Investments, Other Assets & Liabilities
4.1
Florida
3.9
Alabama
3.9
New Jersey
3.9
Tennessee
3.3
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
5.1
13.2
AA
38.8
56.8
A
45.7
26.0
BBB
4.5
4.1
Not Rated
1.9
Short-Term Investments, Other Assets & Liabilities
4.1
Credit Quality
Portfolio (%)
AAA
5.1
AA
38.8
A
45.7
BBB
4.5
Not Rated
1.9
Short-Term Investments, Other Assets & Liabilities
4.1
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Year 1
10.5
1.0
Year 2
11.1
12.0
Year 3
6.1
12.0
Year 4
6.5
12.0
Year 5
9.0
12.0
Year 6
12.6
10.8
Year 7
11.4
12.1
Year 8
7.2
10.3
Year 9
6.5
8.8
Year 10+
14.8
9.1
Short-Term Investments, Other Assets & Liabilities
4.1
Maturity
Portfolio (%)
Year 1
10.5
Year 2
11.1
Year 3
6.1
Year 4
6.5
Year 5
9.0
Year 6
12.6
Year 7
11.4
Year 8
7.2
Year 9
6.5
Year 10+
14.8
Short-Term Investments, Other Assets & Liabilities
4.1
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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