Unsubscribe

Confirm you would like to unsubscribe from this list

You have unsaved changes on the page. Would you like to save them?

Remove strategy

Confirm you would like to remove this strategy from your list
Give Us a Call

Fund Operations
800.847.0200

FIND ANOTHER CONTACT

Thornburg Short Duration Municipal Strategy

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
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.
Performance

Performance

Returns

(As of 31 Dec 2024)
YTD
1y
3y
5y
10y
Inception
Thornburg Short Duration Municipal Strategy - Gross (%)
3.20
3.20
1.97
1.60
1.54
1.51
Thornburg Short Duration Municipal Strategy - Net (%)
2.80
2.80
1.59
1.24
1.18
1.15
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
2.63
2.63
1.29
1.27
1.30
1.26
YTD
1y
3y
5y
10y
Inception
Thornburg Short Duration Municipal Strategy - Gross (%)
1.06
4.09
2.72
1.69
1.63
1.58
Thornburg Short Duration Municipal Strategy - Net (%)
0.99
3.68
2.33
1.33
1.27
1.22
ICE BofA 1-3 Year U.S. Municipal Securities Index (%)
1.01
3.57
2.06
1.33
1.37
1.33
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 (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Multi Family Mortgage
22.3
5.6
Industrial Development/Pollution Control
20.5
Gas
9.0
Hospital
8.6
4.5
School District General Obligation
7.4
Public Power
4.3
4.3
Local General Obligation
3.4
13.5
School District App
3.3
US Treasuries
3.2
Dedicated Tax
3.0
7.7
State General Obligation
1.7
18.1
Combined Utilities
1.7
6.6
Water/Sewer
1.6
4.3
Lifecare
1.6
Airport
1.6
2.6
Incremental Tax
1.4
Higher Education
1.3
Appropriation
0.9
4.6
Toll Road
0.9
3.2
Port Facilities
0.8
Prepaid Utility
0.8
Other Transportation
0.8
4.8
Special District
0.4
Single Family Mortgage
0.4
0.2
Prerefunded / Escrow to Maturity
0.2
Cash & Cash Equivalents
-1.1
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 (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Texas
13.9
8.5
Illinois
8.0
4.7
Indiana
7.7
0.8
Florida
6.7
2.7
California
5.7
16.4
Wisconsin
4.8
2.1
Pennsylvania
4.6
3.1
Louisiana
4.6
0.9
Tennessee
4.3
0.9
US
3.2
Cash
-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 (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
AAA
25.0
19.1
AA
29.1
56.0
A
32.2
21.8
BBB
12.0
3.1
Not Rated
2.8
Cash & Cash Equivalents
-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 (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
Year 1
37.3
3.0
Year 2
24.9
53.0
Year 3
21.2
44.0
Year 4
9.8
Year 5+
8.1
Cash
-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

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

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

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

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

Electric blast of white smoke and sparks with lightning on a blue background.
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.
From the bottom of the staircase, the spiral staircase.
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.
From the bottom of the staircase, the spiral staircase.
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.
Map of the world
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.
High Speed Motion Blur from a subway train
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.
The United States Treasury Department in Washington D.C.
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.