Sustainable Value Fund

Overview

The Brown Advisory Sustainable Value Fund seeks to achieve capital appreciation by investing in a portfolio of companies that we believe have proven durable fundamental strengths, attractive valuations, exhibit capital discipline and a Sustainable Cash Flow Advantage (SCFA).

The Fund seeks to identify companies with SCFA(s) using our 3P investment filter, focusing on those leveraging sustainable strategies through their People, Process, and/or Product to drive enhanced financial performance. We consider multiple sources of information in our investment research, including fundamental data and sustainable business practices, which enables us to identify high-quality investments with SCFAs versus competitors. 

Our investment philosophy is grounded in the following principles:

Free Cash Flow:

  • We focus on a company’s capital structure and approach to capital allocation. We place a high emphasis on financial flexibility as well as capital returns to shareholders through buybacks and dividends.

Sustainability:

  • Our research-intensive approach focuses on uncovering what we believe to be attractive investments that meet our sustainability- related and “value” criteria. We embed sustainable investing considerations into our research process and portfolio construction to help us identify high quality investments with Sustainable Cash Flow Advantages.

Valuation:

  • We find value opportunities in durable and sustainable free cash flow businesses that maintain prudent capital structures and exhibit capital discipline.

Portfolio Diversification

(As of Dec 31, 2025)

Sector Fund Benchmark
Communication Services 7.6 8.5
Consumer Discretionary 4.0 7.4
Consumer Staples 3.4 7.2
Energy 5.9 5.7
Financials 20.8 22.3
Health Care 21.6 12.2
Industrials 10.2 13.0
Information Technology 12.1 11.3
Materials 8.1 4.0
Real Estate 3.0 4.0
Utilities 3.3 4.4
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.

Characteristics

(As of Dec 31, 2025)

Portfolio Attribute Fund Benchmark
Fund Assets ($MM) 178 —
Number of Holdings 41 870
Wtd. Avg. Market Capitalization ($B) 153.5 401.3
Wtd. Median Market Capitalization ($B) 48.9 123.9
Earnings Growth 3-5 Yr. Est (%) 9.3 10.5
Price-to-Earnings Ratio (P/E, FY1) 15.8 18.6
Price-to-Earnings Ratio (P/E, FY2) 14.1 17.1
Beta 1.1 —
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.

Sustainable investment considerations are one of multiple informational inputs into the investment process, alongside data on traditional financial factors, and so are not the sole driver of decision-making. Sustainable investment analysis may not be performed for every holding in the strategy. Sustainable investment considerations that are material will vary by investment style, sector/industry, market trends and client objectives. The Fund seeks to identify companies that it believes may be desirable based on our analysis of sustainable investment related risks and opportunities, but investors may differ in their views. As a result, the Fund may invest in companies that do not reflect the beliefs and values of any particular investor. The Fund may also invest in companies that would otherwise be excluded from other funds that focus on sustainable investment risks. Security selection will be impacted by the combined focus on sustainable investment research assessments and fundamental research assessments including the return forecasts. The Fund incorporates data from third parties in its research process but does not make investment decisions based on third-party data alone.

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 (BISVX) 3.61 15.69 — — — 15.72
Russell 1000 Value Total Return 3.81 15.91 — — — 14.15
Gross Expense Ratios: 0.92% (Investor), 0.77% (Institutional)
Net Expense Ratios: 0.86% (Investor), 0.71% (Institutional)

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. Brown Advisory LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse certain expenses through October 31,2026.

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.

Sustainable investment considerations are one of multiple informational inputs into the investment process, alongside data on traditional financial factors, and so are not the sole driver of decision-making. Sustainable investment analysis may not be performed for every holding in the strategy. Sustainable investment considerations that are material will vary by investment style, sector/industry, market trends and client objectives. The Fund seeks to identify companies that it believes may be desirable based on our analysis of sustainable investment related risks and opportunities, but investors may differ in their views. As a result, the Fund may invest in companies that do not reflect the beliefs and values of any particular investor. The Fund may also invest in companies that would otherwise be excluded from other funds that focus on sustainable investment risks. Security selection will be impacted by the combined focus on sustainable investment research assessments and fundamental research assessments including the return forecasts. The Fund incorporates data from third parties in its research process but does not make investment decisions based on third-party data alone.

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.

Top 10 Portfolio Holdings

(As of Dec 31, 2025)

Name Percentage
CRH PLC 4.7
Cardinal Health Inc 4.4
Sanofi SA 4.1
Bank of America Corp 3.8
SLB Ltd 3.6
American International Group Inc 3.5
Willis Towers Watson PLC 3.4
Unilever PLC 3.3
Citigroup Inc 3.2
Constellation Energy Corp 3.1
Total 37.2
Source: U.S. Bank. Portfolio holdings include cash and equivalents, which was 4.2% 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.

Sustainable investment considerations are one of multiple informational inputs into the investment process, alongside data on traditional financial factors, and so are not the sole driver of decision-making. Sustainable investment analysis may not be performed for every holding in the strategy. Sustainable investment considerations that are material will vary by investment style, sector/industry, market trends and client objectives. The Fund seeks to identify companies that it believes may be desirable based on our analysis of sustainable investment related risks and opportunities, but investors may differ in their views. As a result, the Fund may invest in companies that do not reflect the beliefs and values of any particular investor. The Fund may also invest in companies that would otherwise be excluded from other funds that focus on sustainable investment risks. Security selection will be impacted by the combined focus on sustainable investment research assessments and fundamental research assessments including the return forecasts. The Fund incorporates data from third parties in its research process but does not make investment decisions based on third-party data alone.

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.