Sustainable Bond Fund

Shining sun behind green mountains
Fact Sheet

Investment approach

The fund seeks impact through by investing in a concentrated portfolio of high-conviction bonds that have undergone concurrent fundamental and ESG research. In pursuit of this goal, the fund will invest at least 80% of the value of its net assets (plus borrowings for investment purposes) in fixed income securities of issuers that satisfy the fund's investment and ESG criteria. The fund invests in corporate, municipal, mortgage-backed and asset-backed fixed income securities that are issued as “Green Bonds” or that otherwise meet the fund’s ESG criteria. Additionally, the fund also invests in securities issued by the U.S. Government and foreign government entities that are both dollar-and non-dollar-denominated.

Fund profile

The fund’s portfolio will generally seek to have an average dollar weighted maturity between 6 and 11 years and an average duration of 3 to 7 years.

Credit Quality Distribution (%)

(As of Sep 30, 2023)

Fund Benchmark
AAA/Aaa 73.2 73.2
AA/Aa 1.4 2.5
A 5.3 11.8
BBB 20.0 11.9
High Yield – 0.4
Not Rated – 0.3
Credit quality is calculated using ratings assigned by Moody’s. If Moody’s does not rate a holding then Standard & Poor’s is used. If Moody’s and Standard & Poor’s do not rate a holding then Fitch is used. A bond is considered investment grade if its credit rating is BBB- or higher according to Standard & Poor’s; more specifically, a rating of “AAA” represents the highest credit quality with minimal risk of default and a rating of “BB” or below represents speculative financial security. High Yield, if noted, includes holdings that are rated BB+ or lower according to Moody’s. Not Rated category, if noted, includes holdings that are not rated by any rating agencies. All ratings are as of 09/30/2023.

Duration Distribution (%)

(As of Sep 30, 2023)

Fund Benchmark
< 1 Year 4.9 1.3
1 to 3 Years 26.8 23.8
3 to 5 Years 20.4 21.0
5 to 7 Years 32.7 20.7
7 to 10 Years 8.6 18.3
Greater than 10 Years 6.7 15.0
Source: FactSet® Duration distribution includes cash and equivalents. Distribution is subject to change and should not be considered a suggestion or a recommendation 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.

Portfolio Sector

(As of Sep 30, 2023)

Sector Fund Benchmark
Cash & Equivalents -5.0 0.2
US Government 22.2 42.8
Non-US Government 18.7 2.7
Corporate 24.0 24.7
Mortgage 31.3 26.6
CMBS 1.2 1.7
ABS 6.3 0.6
Municipal 1.3 0.6
Unassigned — —
Source: Advent Portfolio Exchange®for Fund data, FactSet® for benchmark data. Sector breakdown includes cash and equivalents, are subject to change at any time and should not be considered a suggestion or recommendation 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. Figures may not total 100 due to rounding.

Characteristics

(As of Sep 30, 2023)

Portfolio Attribute Fund Benchmark
Avg. Credit Quality Aa3 Aa2
Effective Duration (years) 6.0 5.9
Yield to Worst (%) 5.5 5.4
Avg. Life (years) 8.1 8.5
30-Day SEC Yield Unsubsidized (%) 4.66 —
Source: Fund net assets provided by U.S.Bank; portfolio characteristics from FactSet® and include cash and equivalents. Total net assets are as of the last day of the quarter and include all share classes. ESG considerations that are material will vary by investment style, sector/industry, market trends and client objectives. The strategy seeks to identify companies that it believes may have desirable ESG outcomes, but investors may differ in their views of what constitutes positive or negative ESG outcomes. As a result, the strategy may invest in companies that do not reflect the beliefs and values of any particular investor. The strategy may also invest in companies that would otherwise be screened out of other ESG-oriented funds. Security selection will be impacted by the combined focus on ESG assessments and forecasts of return and risk. The strategy intends to invest in companies with measurable ESG outcomes, as determined by Brown Advisory, and may seek to screen out particular companies and industries. Brown Advisory relies on third parties to provide data and screening tools. There is no assurance that this information will be accurate or complete or that it will properly exclude all applicable securities. Investments selected using these tools may perform differently than as forecasted due to the factors incorporated into the screening process, changes from historical trends, and issues in the construction and implementation of the screens (including, but not limited to, software issues and other technological issues). There is no guarantee that Brown Advisory’s use of these tools will result in effective investment decisions. 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 09/30/2023. 
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 Sep 30, 2023)

Share Class Three Months YTD One Year Three Year Five Year Ten Year Since Inception
Investor (BASBX), Inception: 08/07/2017 -3.66 -2.89 -1.93 -5.46 0.09 — -0.17
Bloomberg Aggregate Bond Index -3.23 -1.21 0.64 -5.21 0.10 — -0.08
Gross Expense Ratio: 0.44% (Institutional), 0.49% (Investor).
Net Expense Ratio: 0.44% (Institutional), 0.49% (Investor).
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.
ESG considerations that are material will vary by investment style, sector/industry, market trends and client objectives. The strategy seeks to identify companies that it believes may have desirable ESG outcomes, but investors may differ in their views of what constitutes positive or negative ESG outcomes. As a result, the strategy may invest in companies that do not reflect the beliefs and values of any particular investor. The strategy may also invest in companies that would otherwise be screened out of other ESG-oriented funds. Security selection will be impacted by the combined focus on ESG assessments and forecasts of return and risk.
The strategy intends to invest in companies with measurable ESG outcomes, as determined by Brown Advisory, and may seek to screen out particular companies and industries. Brown Advisory relies on third parties to provide data and screening tools. There is no assurance that this information will be accurate or complete or that it will properly exclude all applicable securities. Investments selected using these tools may perform differently than as forecasted due to the factors incorporated into the screening process, changes from historical trends, and issues in the construction and implementation of the screens (including, but not limited to, software issues and other technological issues). There is no guarantee that Brown Advisory’s use of these tools will result in effective investment decisions.
 
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 09/30/2023.
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 Sep 30, 2023)

Name Percentage
First American Government Obligations Fund, 5.22% 12.5
Asian Development Bank, 2.88% Due 05/06/2025 3.1
Kreditanstalt fuer Wiederaufbau, 0.63% Due 01/22/2026 3.1
International Bank for Reconstruction & Development, 0.63% Due 04/22/2025 3.1
European Investment Bank, 2.75% Due 08/15/2025 3.0
European Investment Bank, 1.38% Due 03/15/2027 2.9
FNMA TBA 30YR TBA 4% OCT, 4.00% 2.9
GNMAII JUMBO TBA 30YR TBA 2.00% OCT, 2.00% 2.8
Inter-American Development Bank, 0.88% Due 04/20/2026 2.7
United States Treasury Strip Coupon, 0.00% Due 05/15/2043 2.6
Total 38.7
Source: U.S. Bank. Portfolio holdings include cash and equivalents. Fund holdings are subject to change and should not be considered a suggestion or recommendation 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.
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 Asset-Backed and Mortgage-Backed securities include additional risks that investor should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. In addition, the fund is susceptible to risks from investments in derivatives, U.S. Government securities, municipal securities and its investments in other investment companies.
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.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
ESG considerations that are material will vary by investment style, sector/industry, market trends and client objectives. The strategy seeks to identify companies that it believes may have desirable ESG outcomes, but investors may differ in their views of what constitutes positive or negative ESG outcomes. As a result, the strategy may invest in companies that do not reflect the beliefs and values of any particular investor. The strategy may also invest in companies that would otherwise be screened out of other ESG-oriented funds. Security selection will be impacted by the combined focus on ESG assessments and forecasts of return and risk.
The strategy intends to invest in companies with measurable ESG outcomes, as determined by Brown Advisory, and may seek to screen out particular companies and industries. Brown Advisory relies on third parties to provide data and screening tools. There is no assurance that this information will be accurate or complete or that it will properly exclude all applicable securities. Investments selected using these tools may perform differently than as forecasted due to the factors incorporated into the screening process, changes from historical trends, and issues in the construction and implementation of the screens (including, but not limited to, software issues and other technological issues). There is no guarantee that Brown Advisory’s use of these tools will result in effective investment decisions.
Total assets under management value as of 09/30/2023. 
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.
Click here for index and financial term definitions.