Investment approach The Brown Advisory Mortgage Securities Fund employs a strategy centered on individual security analysis and prepayment analysis to identify securities with slower payback speeds. This helps maintain a yield stream. To achieve this objective, the fund will invest at least 80% of its total net assets in investment grade mortgage-related securities. The remaining portion (up to 20%) may be allocated to non-investment-grade or unrated securities. The managers may invest in derivatives instruments, such as options, futures contracts, and options on futures to manage and hedge risks. Fund profile The fund invests independently from the benchmark in a concentrated portfolio of high conviction names. The fund will generally invest in fixed income instruments which pay principal over time. Most of the securities will have an expected life in the range of 2-8 years.