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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 May 2025)
Assets
$304.3 M
Benchmark
ICE BofA 1-10 Year U.S. Municipal Securities Index
Number of Holdings
778
eVestment Category
US Municipal Fixed Income - Short Duration
Performance

Performance

Returns

(As of 31 Mar 2025)
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Municipal Strategy - Gross (%)
1.11
3.01
2.58
1.51
1.83
5.02
Thornburg Limited Term Municipal Strategy - Net (%)
1.02
2.69
2.30
1.24
1.56
4.28
ICE BofA 1-10 Year U.S. Municipal Securities Index (%)
0.63
2.42
2.09
1.31
1.70
Bloomberg 5-Year Municipal Bond Index (%)
0.91
2.40
2.04
1.29
1.68
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Municipal Strategy - Gross (%)
1.34
4.26
2.80
1.21
1.88
5.00
Thornburg Limited Term Municipal Strategy - Net (%)
1.20
3.94
2.52
0.94
1.61
4.27
ICE BofA 1-10 Year U.S. Municipal Securities Index (%)
0.94
3.98
2.29
0.94
1.79
Bloomberg 5-Year Municipal Bond Index (%)
1.35
4.37
2.22
0.83
1.77
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
Bloomberg 5-Year Municipal Bond Index (%)
5.45
4.29
0.34
-5.26
4.31
1.10
ICE BofA 1-10 Year U.S. Municipal Securities Index (%)
5.28
3.81
0.48
-4.61
4.28
1.58
Characteristics

Characteristics

Portfolio

(As of 31 May 2025)
Portfolio
Benchmark
Effective Duration
3.4 Yrs
3.7 Yrs
Average Effective Maturity
4.9 Yrs
5.0 Yrs
Weighted Average Coupon
4.6%
4.6%
Portfolio
Benchmark
Subject to Alternative Minimum Tax
9.0%
Weighted Average Price
$102.88
Portfolio

Portfolio

Top Holdings

(As of 31 May 2025)
Name
Ticker/Symbol
Weight %
Main Street Natural Gas, Inc.
56035DFT4
2.3
PEFA, Inc.
70556CAB0
2.3
Texas Municipal Gas Acquisition & Supply Corp. III
88256HBG2
1.9
Tennessee Energy Acquisition Corp.
88044TAL3
1.5
New Jersey Transportation Trust Fund Authority
6461362B6
1.4
Main Street Natural Gas, Inc.
56035DDX7
1.3
Main Street Natural Gas, Inc.
56035DFC1
1.3
State of Illinois
452152Q20
1.2
Main Street Natural Gas, Inc.
56035DGB2
1.2
Texas Municipal Gas Acquisition & Supply Corp. III
88256HBF4
1.1
Exposure Breakdown

Exposure Breakdown

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

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Gas
21.4
Hospital
11.4
6.0
Industrial Development/Pollution Control
6.5
Multi Family Mortgage
6.3
3.0
Dedicated Tax
5.5
11.5
Airport
4.7
3.1
State General Obligation
4.6
17.7
School District General Obligation
4.3
Local General Obligation
4.3
10.7
Other Transportation
4.0
5.3
School District App
3.9
Appropriation
3.1
3.9
Single Family Mortgage
2.8
0.1
Cash & Cash Equivalents
2.2
Water/Sewer
2.1
4.5
Higher Education
2.0
Prepaid Utility
1.4
Public Power
1.4
8.0
Toll Road
1.3
3.5
Other Revenue
1.2
Port Facilities
1.1
US Treasuries
0.8
Prerefunded / Escrow to Maturity
0.7
Lifecare
0.7
Tobacco
0.5
0.4
Student Housing
0.4
Utilities
0.4
Special Tax
0.3
Charter School
0.3
Combined Utilities
0.3
9.4
Sales Tax
0.2
Incremental Tax
0.1
Special District
0.1
Student Loan
0.1
Sector Allocation
Portfolio (%)
Gas
21.4
Hospital
11.4
Industrial Development/Pollution Control
6.5
Multi Family Mortgage
6.3
Dedicated Tax
5.5
Airport
4.7
State General Obligation
4.6
School District General Obligation
4.3
Local General Obligation
4.3
Other Transportation
4.0
School District App
3.9
Appropriation
3.1
Single Family Mortgage
2.8
Cash & Cash Equivalents
2.2
Water/Sewer
2.1
Higher Education
2.0
Prepaid Utility
1.4
Public Power
1.4
Toll Road
1.3
Other Revenue
1.2
Port Facilities
1.1
US Treasuries
0.8
Prerefunded / Escrow to Maturity
0.7
Lifecare
0.7
Tobacco
0.5
Student Housing
0.4
Utilities
0.4
Special Tax
0.3
Charter School
0.3
Combined Utilities
0.3
Sales Tax
0.2
Incremental Tax
0.1
Special District
0.1
Student Loan
0.1
Top 10 U.S. States
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Texas
11.9
7.4
Illinois
8.8
4.5
Georgia
8.4
4.5
New York
5.9
16.7
Pennsylvania
5.8
3.1
California
5.7
19.3
Florida
4.1
2.3
Alabama
3.9
3.8
New Jersey
3.9
3.8
Kentucky
3.3
1.6
Cash
2.2
Top 10 U.S. States
Portfolio (%)
Texas
11.9
Illinois
8.8
Georgia
8.4
New York
5.9
Pennsylvania
5.8
California
5.7
Florida
4.1
Alabama
3.9
New Jersey
3.9
Kentucky
3.3
Cash
2.2
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
7.1
15.1
AA
40.7
55.4
A
45.0
25.4
BBB
4.0
4.1
Not Rated
1.1
Cash & Cash Equivalents
2.2
Credit Quality
Portfolio (%)
AAA
7.1
AA
40.7
A
45.0
BBB
4.0
Not Rated
1.1
Cash & Cash Equivalents
2.2
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Year 1
9.3
1.0
Year 2
9.4
13.0
Year 3
10.7
13.0
Year 4
6.9
12.0
Year 5
9.0
12.0
Year 6
10.8
10.7
Year 7
14.6
10.8
Year 8
7.0
11.3
Year 9
7.5
8.9
Year 10+
12.6
7.9
Cash
2.2
Maturity
Portfolio (%)
Year 1
9.3
Year 2
9.4
Year 3
10.7
Year 4
6.9
Year 5
9.0
Year 6
10.8
Year 7
14.6
Year 8
7.0
Year 9
7.5
Year 10+
12.6
Cash
2.2
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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