Equity Income Fund

Shining sun behind green mountains
Fact Sheet

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.

Portfolio Sector

(As of Dec 31, 2022)

Sector Fund Benchmark
Communication Services 2.2 7.3
Consumer Discretionary 11.1 9.8
Consumer Staples 5.4 7.2
Energy 3.7 5.2
Financials 16.2 11.7
Health Care 21.4 15.8
Industrials 6.7 8.9
Information Technology 19.9 25.5
Materials 4.2 2.7
Real Estate 3.7 2.7
Utilities 2.4 3.2
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.

Characteristics

(As of Dec 31, 2022)

Portfolio Attribute Fund Benchmark
Number of Holdings 43 503
Wtd. Avg. Market Capitalization ($B) 344.2 417.5
Earnings Growth 3-5 Yr. Est (%) 8.1 11.2
Wtd Avg. Payout Ratio (%) 1.7 0.7
Dividend Yield (%) 2.7 1.7
Price-to-Earnings Ratio (P/E, FY2) 15.5 16.6
Beta 0.8 —
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.   Mutual fund investing involves risk. Principal loss is possible. Investments in foreign securities and ADRs 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.  The Brown Advisory funds are distributed by ALPS Distributors, Inc. 1290 Broadway, Suite 1000, Denver, CO 80203. Brown Advisory Funds and ALPS are not affiliated.
Total assets under management value as of 12/31/2022. 
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.

Performance

Average Annual Total Returns % (As of Dec 31, 2022)

Share Class Three Months YTD One Year Three Year Five Year Ten Year Since Inception
Investor (BIADX), Inception: 12/29/2011 10.88 -11.83 -11.83 5.94 7.83 9.85 9.97
S&P 500 7.56 -18.11 -18.11 7.66 9.42 12.56 12.82
Gross Expense Ratios: 0.79% (Institutional), 0.94% (Investor), 1.19% (Advisor).
Net Expense Ratios: 0.76% (Institutional), 0.91% (Investor), 1.16% (Advisor).
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.
 
 
Mutual fund investing involves risk. Principal loss is possible. Investments in foreign securities and ADRs 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. 
The Brown Advisory funds are distributed by ALPS Distributors, Inc. 1290 Broadway, Suite 1000, Denver, CO 80203. Brown Advisory Funds and ALPS are not affiliated.
Total assets under management value as of 12/31/2022. 
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.

Top Holdings

(As of Dec 31, 2022)

Name Percentage
Microsoft Corp 5.2
Apple Inc 4.8
Merck & Co Inc 4.3
Ameriprise Financial Inc 3.9
Automatic Data Processing Inc 3.6
AbbVie Inc 3.5
Procter & Gamble Co/The 3.0
Linde PLC 3.0
McDonald's Corp 2.9
Chubb Ltd 2.9
Total % of Net Assets 37.2
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 1000, 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.
The advisor has contractually agreed to waive fees. The contractual waivers and expense reimbursements may not be terminated by the Adviser without the consent of the Board of Trustees.
Total assets under management value as of 12/31/2022. Fund holdings includes Cash and Equivalents which was 3.1% as of 12/31/2022 and is provided as supplemental information. 
Inception date for Investor share class.
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 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.