Thornburg Short Duration Municipal Strategy
BENCHMARK: ICE BofA 1-3 Year U.S. Municipal Securities Index
Strategy Overview
The Short Duration 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 less than three 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 Apr 2014
Portfolio Managers
Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Overview
Performance
Performance
Returns
(As of 31 Dec 2024)2019
2020
2021
2022
2023
2024
Thornburg Short Duration Municipal Strategy - Gross (%)
2.73
1.66
0.44
-1.48
4.27
3.20
Thornburg Short Duration Municipal Strategy - Net (%)
2.37
1.34
0.09
-1.84
3.89
2.80
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
2.88
2.16
0.34
-2.03
3.35
2.63
Strategy Facts
Strategy Facts
(As of 28 Feb 2025)Strategy Assets
$121.5 M
Benchmark
ICE BofA 1-3 Year U.S. Municipal Securities Index
Number of Holdings
137
eVestment Category
US Municipal Fixed Income - Short Duration
Characteristics
Characteristics
Portfolio
(As of 28 Feb 2025)Portfolio
Benchmark
Effective Duration
1.3 Yrs
1.7 Yrs
Average Effective Maturity
1.7 Yrs
1.9 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.2%
4.5%
Subject to Alternative Minimum Tax
14.8%
—
Portfolio
Portfolio
Top Holdings
(As of 31 Jan 2025)Name
Ticker/Symbol
Weight %
PEFA, Inc.
70556CAB0
2.6
Indiana Finance Authority
45505RBN4
2.1
Massachusetts Development Finance Agency
57584YPF0
2.1
Travis County Housing Finance Corp.
89438UBM9
1.8
Tennergy Corp./TN
880397CJ1
1.8
Harris County Cultural Education Facilities Finance Corp.
414009NF3
1.8
Knox County Health Educational & Housing Facility Board
499652AM7
1.7
California Municipal Finance Authority
13048RAF4
1.7
Cumberland County Industrial Facilities & Pollution Control Financing Authority
230589AA1
1.7
Rockland County Industrial Development Agency
77356AAC9
1.4
Exposure Breakdown
Exposure Breakdown
(As of 28 Feb 2025)Sector Allocation
Portfolio (%)
Multi Family Mortgage
22.3
Industrial Development/Pollution Control
20.5
Gas
9.0
Hospital
8.6
School District General Obligation
7.4
Public Power
4.3
Local General Obligation
3.4
School District App
3.3
US Treasuries
3.2
Dedicated Tax
3.0
State General Obligation
1.7
Combined Utilities
1.7
Water/Sewer
1.6
Lifecare
1.6
Airport
1.6
Incremental Tax
1.4
Higher Education
1.3
Appropriation
0.9
Toll Road
0.9
Port Facilities
0.8
Prepaid Utility
0.8
Other Transportation
0.8
Special District
0.4
Single Family Mortgage
0.4
Prerefunded / Escrow to Maturity
0.2
Cash & Cash Equivalents
-1.1
Top 10 U.S. States
Portfolio (%)
Texas
13.9
Illinois
8.0
Indiana
7.7
Florida
6.7
California
5.7
Wisconsin
4.8
Pennsylvania
4.6
Louisiana
4.6
Tennessee
4.3
US
3.2
Cash
-1.1
Credit Quality
Portfolio (%)
AAA
25.0
AA
29.1
A
32.2
BBB
12.0
Not Rated
2.8
Cash & Cash Equivalents
-1.1
Maturity
Portfolio (%)
Year 1
37.3
Year 2
24.9
Year 3
21.2
Year 4
9.8
Year 5+
8.1
Cash
-1.1
Portfolio Managers
Portfolio Managers

David Ashley, CFA
Portfolio Manager and Managing Director
David Ashley is 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 Trust…
Learn More

John Bonnell, CFA
Portfolio Manager and Managing Director
John Bonnell, CFA, is portfolio manager and managing director for Thornburg Investment Management. He joined Thornburg’s municipal team in 2021. John has over 30 years of municipal bond investing experience. He spent 25 years of his career at USAA where he was most recently a senior portfolio manager and, in 2010, took on responsibility for co-leading municipal bond strategies. Earlier…
Learn More

Eve Lando, JD
Portfolio Manager and Managing Director
Eve Lando is 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 and…
Learn More

Craig Mauermann, ChFC
Portfolio Manager and Managing Director
Craig Mauermann, ChFC, is 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 and…
Learn More
Literature
More Insights

Fixed Income
The Next Market Shock? Key Risk Factors Investors Must Watch
From China’s slowdown to trade tensions and AI speculation, discover the top risks shaping global markets in 2025 and how investors can prepare for potential disruptions.

Outlook
Fixed Income in Focus—Yield Potential Amid Narrow Spreads
With spreads at historic lows and yields at highs, fixed income markets present a rare dichotomy. Uncover insights and risks for 2025.

Global Equity
U.S. Valuations to Global Opportunities: Key Takeaways for Investors
Dive into actionable strategies for navigating a high-valuation U.S. market, trade uncertainties, and opportunities in international equities.

International Equities
Beyond Borders: Strategies for International Investing in 2025
Despite the high growth expectations for U.S. companies, the concentration risks in the market highlight the potential benefits of exploring opportunities abroad.

Municipal Bonds
State of Mass Public Transit: Moving Forward or Spinning Its Wheels?
See what trends in ridership and farebox revenue reveal about the state of mass public transit systems in New York, Chicago, and the Bay Area.

Fixed Income
The Decline of US Treasuries? What Treasury Auctions Reveal
Despite the perceived weakness, we believe there are three critical indicators that reveal the strength of investor demand for U.S. government debt.