The Board of Trustees of Brown Advisory Funds has approved certain changes relating to the Fund, as described below:

1. Change in Market Capitalization Range for the Fund

Based on market conditions, Brown Advisory LLC, the investment adviser to the Fund, has modified the market capitalization range of portfolio companies in which the Fund may invest to those companies with a market capitalization at the upper limit of the greater of $6 billion or the maximum capitalization of companies in the Russell 2000 Growth Index (which was approximately $7.2 billion as of January 31, 2019), measured at the time of purchase.

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The Brown Advisory Small-Cap Growth Fund seeks to achieve capital appreciation by primarily investing in equity securities.

Investment approach

The fund invests primarily in the common stock of small domestic companies possessing what the portfolio managers see as above-average growth potential based on in-depth fundamental analysis. The managers define small-cap as those companies with a market capitalization less than $6 billion at the time of purchase. The fund may invest up to 20% of its net assets in non-U.S. and emerging market securities, typically through sponsored American Depository Receipts (ADRs).

Risk mitigation is sought through diversification across sectors, business models and economic sensitivity.

Fund profile

The fund invests in a concentrated portfolio primarily of companies the portfolio managers believe possess "3G" criteria: durable growth, sound governance, and scalable go-to-market strategies. In considering durable growth, the managers assess:

  • Whether there is a large and growing market;
  • Whether the company is a market leader and/or is gaining market share; and
  • Whether a company has a differentiated product offering.

To assess governance, the managers examine the strength of a company’s management, whether there is a shareholder-friendly board, and the alignment of management incentives with shareholder interests. Finally, the managers evaluate whether a company’s go-to-market strategies will result in incremental revenue, high and/or rising margins, and the efficient use of capital.

(As of Mar 31, 2021)

Sector Fund Benchmark
Communication Services 6.0 2.4
Consumer Discretionary 13.6 15.4
Consumer Staples 5.5 3.0
Energy 0.6 0.2
Financials 3.2 4.3
Health Care 23.3 32.2
Industrials 15.0 14.5
Information Technology 29.6 20.5
Materials 1.5 2.6
Real Estate 1.6 3.3
Utilities 1.5
Source: U.S. Bank. Sector breakdown (excluding cash and equivalents) and Fund holdings (including cash and equivalents) are subject to change at anytime. 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.

(As of Mar 31, 2021)

Portfolio Attribute Fund Benchmark
Number of Holdings 82 1147
Wtd. Avg. Market Capitalization ($B) 7.2 4.2
Wtd. Median Market Capitalization ($B) 6.1 3.5
Earnings Growth 3-5 Yr. Est (%) 20.6 21.5
Price-to-Earnings Ratio (P/E, FY1) 33.2 26.4
Price-to-Earnings Ratio (P/E, FY2) 30.0 23.4
Beta 0.8
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 excludecash and equivalentsand are derivedfromFactSet® 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 Mar 31, 2021)

Share Class Three Months One Year Three Year Five Year Ten Year Since Inception
Investor (BIASX), Inception: 06/28/1999 2.01 75.25 18.46 17.98 13.22 8.68
Russell 2000® Growth Index 4.88 90.20 17.16 18.61 13.02 8.11
Gross Expense Ratios: 1.00% (Institutional), 1.15% (Investor), 1.40% (Advisor) Source: U.S. Bank.
Net Expense Ratios: 1.00% (Institutional), 1.15% (Investor), 1.40% (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. 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.

(As of Mar 31, 2021)

Name Percentage
Cash and Equivalents 4.5
Charles River Laboratories International Inc 3.3
Genpact Ltd 3.1
Zynga Inc 3.0
Workiva Inc 2.8
IAA Inc 2.6
Hain Celestial Group Inc/The 2.3
Bright Horizons Family Solutions Inc 2.2
NeoGenomics Inc 2.1
Waste Connections Inc 2.1
Total % of Net Assets 28.0
Mutual fund investing involves risk. Principal loss is possible. Securities of medium-sized companies may be more volatile and more difficult to liquidate during market down turns than securities of larger companies. 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. These risks are greater in emerging markets. In addition, the fund is susceptible to risks from investments in ETFs, REITs, derivatives, private placements and its investments in other investment companies.
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.
© 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 Small-Cap Growth Fund was rated against U.S. domiciled Small Growth funds over the following time periods:  576 funds in the last three years,  503 in the last five years, and 379 in the last ten years for the period ending 03/31/2021. With respect to these Small Growth funds, Brown Advisory Small-Cap Growth Fund received a Morningstar Rating of 3 stars, 3 stars and 3 stars for the three-, five- and ten-year period, respectively. The Morningstar category represents a universe of open-end U.S. funds with similar objectives. Past performance is no guarantee of future results.
Morningstar Rating™ as of 03/31/2021 for Investor Shares (derived from a weighted average of the fund’s three-, five- and 10-year risk adjusted return measure).

Total assets under management value as of 03/31/2021. 

Inception date for Investor share class.
Estimated EPS Growth Rate is not a measure of the fund's future performance.
Diversification does not assure a profit or protect against a 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.