Flexible Equity Fund

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Fact Sheet

Investment approach

The Brown Advisory Flexible Equity Fund searches across a broad investment universe to find attractive or improving businesses trading at prices that the managers believe do not reflect their favorable fundamentals. This flexible approach allows the managers to seek what they believe are undervalued shares in attractive businesses no matter whether the stocks are statistically characterized as "value" or "growth" investments.  The Fund may invest up to 15% of its net assets in non-U.S. securities, typically through sponsored American Depository Receipts (ADRs).

Fund profile

The Fund consists of a moderately concentrated portfolio of mid- and large-cap companies. The managers seek to buy businesses that exhibit the following desirable traits:

  • Favorable business economics supported by enduring competitive advantages;
  • Capable and trustworthy management;
  • Positive industry dynamics; and
  • Sensible capital allocation.

Portfolio Sector

(As of Mar 31, 2024)

Sector Fund Benchmark
Communication Services 13.0 9.0
Consumer Discretionary 12.5 10.3
Consumer Staples 1.3 6.0
Energy 3.0 4.0
Financials 28.8 13.2
Health Care 12.9 12.4
Industrials 9.2 8.8
Information Technology 18.3 29.6
Materials — 2.4
Real Estate 0.9 2.3
Utilities — 2.2
The Brown Advisory Value Equity Fund was merged into the Brown Advisory Flexible Equity Fund effective December 2, 2016. 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. Estimated EPS Growth Rate is not a measure of the fund's future performance. 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 index and financial term definitions.

Characteristics

(As of Mar 31, 2024)

Portfolio Attribute Fund Benchmark
Wtd. Avg. Market Capitalization ($B) 736.7 803.9
Wtd. Median Market Capitalization ($B) 195.2 224.7
Earnings Growth 3-5 Yr. Est (%) 14.1 13.8
P/E Ratio (FY1Est.) 22.3 22.0
Price-to-Earnings Ratio (P/E, FY2) 19.5 19.4
Number of Holdings 46 503
Beta 1.0 —
Source: Fund net assets provided by U.S. Bank and 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 applicable to the investor share class only. 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. Earnings growth 3-5 year estimate is not a measure of the Fund’s future performance.   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 03/31/2024. 
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 Mar 31, 2024)

Share Class Three Months One Year Three Year Five Year Ten Year Since Inception
Investor (BIAFX), Inception: 11/30/2006 11.52 37.33 11.01 16.14 13.14 9.82
S&P 500® TR 10.56 29.88 11.49 15.05 12.96 10.10
Gross Expense Ratios: 0.54% (Institutional), 0.69% (Investor), 0.94% (Advisor).
Net Expense Ratios: 0.54% (Institutional), 0.69% (Investor), 0.94% (Advisor).
All returns greater than one year are annualized.
Performance data quoted represents past performance and is no guarantee of future results. 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. For monthly and quarterly performance information, please call 1-800-540-6807.
Performance data does not reflect the 1.00% fee on shares redeemed or exchanged within 14 days of purchase, and if it had, returns would be lower.
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 03/31/2024. 
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 Mar 31, 2024)

Name Percentage
Microsoft Corp 7.1
Alphabet Inc * 5.7
Mastercard Inc 4.7
Meta Platforms Inc 4.6
Visa Inc 4.6
Berkshire Hathaway Inc 4.0
Amazon.com Inc 3.9
KKR & Co Inc 3.7
UnitedHealth Group Inc 3.0
Taiwan Semiconductor Manufacturing Co Ltd 2.8
Total % of Net Assets 44.0
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, 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.

Source: U.S. Bank for portfolio holdings. * Alphabet Inc. represents a 2.3% holding in Class A shares of the stock and 3.5% holding in Class C shares of the stock. Sector breakdown (excluding cash and equivalents) and Fund holdings (including cash and equivalents which was 5.1% as of 03/31/2024 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.
©2023 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 Flexible Equity Fund was rated against the following number of U.S. domiciled Large Growth funds over the following time periods: 1,111 funds in the last three years, 1,037 in the last five years and 807 in the last ten years for the period ending 03/31/2024. With respect to these Large Growth funds, Brown Advisory Flexible Equity Fund received a Morningstar Rating of 4 stars, 4 stars and 3 stars for the three-, five- and ten-year periods respectively. Morningstar Rating™ is for the Investor share class only; other classes may have different performance characteristics.
Total assets under management value as of 03/31/2024. 
Inception date for Investor share class.
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.
The Brown Advisory Value Equity Fund was merged into the Brown Advisory Flexible Equity Fund effective December 2, 2016.
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.
Estimated EPS Growth Rate is not a measure of the Fund's future performance.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
Click here for index and financial term definitions.