The Brown Advisory Equity Income Fund seeks to provide current dividend yield and dividend growth.

Investment approach

The fund seeks to invest at least 80% of its assets in a diversified portfolio of dividend-paying stocks. The manager may invest up to 20% of the fund in fixed income. Stock selection involves screening for yield, fundamental research, and an assessment of a company's dividend policy. The fund will focus on medium and large cap stocks with market caps greater than $2 billion at the time of initial investment.

Fund profile

The fund is a concentrated portfolio of securities that the manager views as  high-quality companies offering above-average dividend yields and the potential for dividend growth. The fund seeks to offer investors the opportunity for an attractive total return with potentially lower volatility than broad market indices.

(As of Jun 30, 2020)

Sector Fund Benchmark
Communication Services 2.4 10.8
Consumer Discretionary 13.3 10.8
Consumer Staples 7.4 7.0
Energy 3.5 2.8
Financials 15.1 10.1
Health Care 18.8 14.6
Industrials 5.0 8.0
Information Technology 25.2 27.5
Materials 4.0 2.5
Real Estate 5.4 2.8
Utilities 3.1
Source: FactSet for sector composition and U.S. Bank for holdings. Sector breakdown (excluding cash and equivalents) and Fund holdings (including cash and equivalents) are subject to change at any time. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. Sectors are based on the Global Industry Classification Standard (GICS®) classification system. Numbers may not total due to rounding.

(As of Jun 30, 2020)

Portfolio Attribute Fund Benchmark
Number of Holdings 42 505
Wtd. Avg. Market Capitalization ($B) 314.2 388.0
Earnings Growth 3-5 Yr. Est (%) 7.4 10.2
Wtd Avg. Payout Ratio (%) 0.6 0.6
Dividend Yield (%) 2.8 1.9
Price-to-Earnings Ratio (P/E, FY2) 17.2 19.3
Beta 1.0
Characteristics Table: Fund net assets provided by U.S. Bank and assets are as of the last day of the quarter and include all share classes. Characteristics exclude cash and equivalents and are derived from FactSet® and are only applicable for the investor share class. Earnings growth 3-5 year estimate is not a measure of the Fund’s future performance. Performance figures and charts include the reinvestment of dividend and capital gain distributions. Returns would have been lower during the specified periods if the payment of certain fees by the Fund had not been waived or expenses reimbursed.

Average Annual Total Returns % (As of Jun 30, 2020)

Share Class Three Months YTD One Year Three Year Five Year Ten Year Since Inception
Investor (BIADX), Inception: 12/29/2011 17.23 -8.25 0.24 7.38 7.24 9.69
S&P 500 20.54 -3.08 7.51 10.73 10.73 13.47
Gross Expense Ratios: 0.96% (Investor), 0.81% (Institutional), 1.21% (Advisor) Source: U.S. Bank.
Net Expense Ratios: 0.96% (Investor), 0.81% (Institutional), 1.21% (Advisor) Source: U.S. Bank.
Returns greater than one year are annualized. 
Performance data quoted represents past performance and is no guarantee of future results. Performance for periods greater than one year is annualized. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Performance for other share classes will vary. Shares redeemed or exchanged within 14 days of purchase will be charged a 1.00% fee. Performance data quoted does not reflect the redemption or exchange fee. If reflected, total returns would be reduced. For the most recent month end performance, please call 1-800-540-6807.
The S&P 500® Index represents the large-cap segment of the U.S. equity markets and consists of approximately 500 leading companies in leading industries of the U.S. economy. Criteria evaluated include: market capitalization, financial viability, liquidity, public float,sector representation,and corporate structure. An index constituent must also be considered a U.S.company. It is not possible to invest directly in an index.

(As of Jun 30, 2020)

Name Percentage
Microsoft Corp 7.3
Apple Inc 5.4
Merck & Co Inc 4.3
Cisco Systems Inc 4.2
Cash and Equivalents 3.3
Automatic Data Processing Inc 3.3
American Tower Corp 3.2
Johnson & Johnson 3.1
Accenture PLC 3.0
Novartis AG 2.9
Total % of Net Assets 39.8
Mutual fund investing involves risk. Principal loss is possible. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Investments in smaller and medium capitalization companies generally carry greater risk than is customarily associated with larger companies for various reasons such as narrower markets, limited financial resources and less liquid stock. Investments in foreign securities entail certain risks not associated with investments in domestic securities, such as volatility of currency exchange rates, and in some cases, political and economic instability and relatively illiquid markets. In addition, the fund is susceptible to risks from investments in ETFs, REITs, MLPs and private placements.
The Brown Advisory funds are distributed by ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203. Brown Advisory Funds and ALPS are not affiliated.
The minimum investment requirements are waived for qualified retirement plans under Section 401(a) of the Internal Revenue Code ("IRC"), and plans operating consistent with 403(a), 403(b), 408, 408(A), 457, 501(c) and 223(d) of the IRC.
Total assets under management value as of 06/30/2020. 
Inception date for Investor share class.
© 2020  Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar Rating™ is a trademark of Morningstar, Inc. Morningstar Rating™ is for the Investor share class only; other classes may have different performance characteristics.“The Morningstar Rating™ for funds, or“star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance.The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics.The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.” Morningstar Rankings represent a fund’s total-return percentile rank relative to all funds that have the same Morningstar Category. The highest percentile rank is 1 and the lowest is 100. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees. Brown Advisory Equity Income Fund was rated against the following number of U.S. Large Growth funds over the following time periods: 1,230 funds in the last three years, 1,058 in the last five years and 806 in the last ten years for the period ending 06/30/2020 . With respect to these, Brown Advisory Equity Income received a Morningstar Rating of  3 stars and 3 stars for the three- and five-year periods respectively.

Morningstar Rating™ as of 06/30/2020 for Investor Shares (derived from a weighted average of the fund’s three-, five- and 10-year risk adjusted return measure).
 
Estimated EPS Growth Rate is not a measure of the fund's future performance.
Diversification does not assume a profit nor protect against loss in a declining market.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
Click here for a current prospectus. Please read and consider it carefully before investing. You may obtain a hardcopy of the prospectus by calling 1-800-540-6807.
Click here for index and financial term definitions.