Small-Cap Fundamental Value Fund

Overview

The Brown Advisory Small-Cap Fundamental Value Fund seeks to achieve long-term capital appreciation using a differentiated investment approach in a widely inefficient asset class.

Our philosophy centers on identifying and capitalizing on market inefficiencies to deliver attractive returns. By leveraging our deep understanding of market dynamics and employing rigorous research and analysis, we aim to uncover opportunities that are often overlooked by others. This approach allows us to construct portfolios that aim to not only mitigate risk but also enhance potential returns. Our commitment to a disciplined investment process ensures that we remain focused on long-term value creation, even in volatile market conditions.

Our investment philosophy is grounded in the following principles:

Sustainable Free Cash Flow:​

  • We seek companies with strong and consistent cash flow generation capabilities.

Shareholder-Friendly Capital Allocation Records:

  • We focus on firms with a proven track record of prudent and effective capital management, demonstrating a commitment to maximizing shareholder value.​

Attractive Valuations:

  • We seek investments that are priced favorably, offering attractive risk/reward profiles and the potential for significant upside.

(As of Dec 31, 2025)

Sector Fund Benchmark
Communication Services 6.2 3.2
Consumer Discretionary 8.0 9.9
Consumer Staples 1.7 1.6
Energy 6.0 7.0
Financials 31.8 26.4
Health Care 7.2 11.0
Industrials 10.1 12.6
Information Technology 9.4 7.7
Materials 8.3 5.4
Real Estate 7.2 9.5
Utilities 4.2 5.7
Source: FactSet®. Portfolio diversification excludes cash and equivalents. Sectors are based on the Global Industry Classification Standard (GICS®) classification system. Numbers may not total due to rounding.

(As of Dec 31, 2025)

Portfolio Attribute Fund Benchmark
Number of Holdings 62 1,426
Wtd. Avg. Market Capitalization ($B) 3.4 3.5
Earnings Growth 3-5 Yr. Est (%) 10.2 10.6
Price-to-Earnings Ratio (P/E, FY1) 13.3 13.7
Price-to-Earnings Ratio (P/E, FY2) 11.5 12.3
Source: FactSet®. Characteristics are applicable to the investor share class only, exclude cash and equivalents, and are calculated gross of fees unless noted otherwise. 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. Past performance is no guarantee of future results.

Carefully consider a fund’s investment objectives, risks, charges and expenses before investing.Click here for a current prospectus and click here for a current SAI. 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.

The information provided 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. 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.

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.

1 Fund net assets provided by U.S. Bank and are as of the last day of the quarter and include all share classes.

Inception date for Investor share class.

FactSet® is a registered trademark of FactSet Research Systems, Inc.​

GICS® is a registered trademark of MSCI and Standard & Poor’s Financial Services LLC.​

The Brown Advisory Funds are distributed by ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203. which is not affiliated with Brown Advisory LLC.

Average Annual Total Returns % (As of Dec 31, 2025)

Share Class Three Months One Year Three Year Five Year Ten Year Since Inception
Investor (BIAUX), Inception: 12/31/2008 0.46 5.73 11.12 10.42 8.57 11.48
Russell 2000® Value Index 3.26 12.59 11.73 8.88 9.27 10.27
Gross Expense Ratios: 1.11% (Investor), 0.96% (Institutional), 1.36% (Advisor) 
Net Expense Ratios: 1.11% (Investor), 0.96% (Institutional), 1.36% (Advisor) 

The benchmark index shown represents the Fund's performance benchmark index, which is different from the Fund's regulatory benchmark index. The Fund’s regulatory benchmark index is the Russell 1000® Index and it is included in the Fund's prospectus. The Fund’s prospectus can be obtained by contacting the Fund at 1-800 645-3923 or by visiting the Fund’s website.

Source: U.S. Bank. 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, may be worth more or less than original cost. Performance for other share classes will vary. For the most recent month end performance, please call 1-800-540-6807.

Mutual fund investing involves risk. Principal loss is possible. Past performance is no guarantee of future results.

Carefully consider a fund’s investment objectives, risks, charges and expenses before investing.Click here for a current prospectus and click here for a current SAI. 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.

 The information provided 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. 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.

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.

1 Fund net assets provided by U.S. Bank and are as of the last day of the quarter and include all share classes.

Inception date for Investor share class.

FactSet® is a registered trademark of FactSet Research Systems, Inc.​

GICS® is a registered trademark of MSCI and Standard & Poor’s Financial Services LLC.​

The Brown Advisory Funds are distributed by ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203. which is not affiliated with Brown Advisory LLC.

(As of Dec 31, 2025)

Name Percentage
NCR Atleos Corp 3.5
Cushman & Wakefield PLC 3.3
Ingevity Corp 2.8
Global Net Lease Inc 2.5
Talen Energy Corp 2.5
Brightstar Lottery PLC 2.4
Oceaneering International Inc 2.3
Towne Bank/Portsmouth VA 2.3
Bancorp Inc/The 2.3
Old National Bancorp/IN 2.2
Total % of Net Assets 26.0
Source: U.S. Bank. Portfolio holdings include cash and equivalents, which was 1.8% as of 12/31/2025, and 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. Numbers may not total due to rounding.

Mutual fund investing involves risk. Principal loss is possible. Past performance is no guarantee of future results.

Carefully consider a fund’s investment objectives, risks, charges and expenses before investing.Click here for a current prospectus and click here for a current SAI. 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.

 The information provided 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. 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.

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.

1 Fund net assets provided by U.S. Bank and are as of the last day of the quarter and include all share classes.

Inception date for Investor share class.

FactSet® is a registered trademark of FactSet Research Systems, Inc.​

GICS® is a registered trademark of MSCI and Standard & Poor’s Financial Services LLC.​

The Brown Advisory Funds are distributed by ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203. which is not affiliated with Brown Advisory LLC.