Tax-Exempt Bond Fund

Shining sun behind green mountains
Fact Sheet

Investment approach

The portfolio managers for the Fund believe that bottom-up credit research helps build a portfolio that reflects their best ideas and which may offer attractive risk-adjusted total return over time. In pursuit of this goal, the Fund will invest at least 80% of its net assets in securities with interest that is exempt from Federal income taxes and that do not subject shareholders to the federal alternative minimum tax (AMT). The Fund may invest up to 20% of its assets in securities that may subject shareholders to the AMT. In addition, all capital gains are subject to Federal and state taxes in addition to AMT. The Fund is non-diversified, which means that it may invest a significant portion of its assets in the securities of a single issuer or small number of issuers.

Fund profile

The Fund is a concentrated portfolio of the portfolio managers’ best ideas that have been identified through fundamental analysis and which the managers believe have the potential to deliver both attractive and tax-efficient risk-adjusted returns over time.

Credit Quality Distribution (%)

(As of Sep 30, 2024)

Fund Benchmark
AAA/Aaa 12.3 18.2
AA/Aa 33.9 55.3
A 45.0 22.0
BBB 7.0 3.7
High Yield – —
Not Rated 1.7 0.8
Source: FactSet® 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 09/30/2024.

Duration Distribution (%)

(As of Sep 30, 2024)

Fund Benchmark
Less than 1 Year 31.2 7.1
1 to 3 Years 21.2 33.0
3 to 5 Years 9.7 27.6
5 to 7 Years 8.8 21.6
7 to 10 Years 16.9 10.4
Greater than 10 Years 12.3 0.3
Source: FactSet® Distribution is subject to change and should not be 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. Figures may not total 100% due to rounding

Portfolio Sector

(As of Sep 30, 2024)

Sector Fund Benchmark
Cash & Equivalents -0.1 —
Revenue 76.7 65.4
General Obligation 22.0 31.1
Pre-Refunded 1.5 3.5
Source: FactSet® and Advent Portfolio Exchange® . Sector diversification includes cash and equivalents. 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. Figures may not total 100% due to rounding

Characteristics

(As of Sep 30, 2024)

Portfolio Attribute Fund Benchmark
Avg. Credit Quality A1 Aa3
Effective Duration (years) 4.2 4.0
Average life (yrs) 6.7 4.4
Yield to Worst (%) 3.7 2.9
30-Day SEC Yield (Unsubsidized) (%) 3.37 —
# of Holdings 172 34461
Source: FactSet® . Characteristics include cash and equivalents 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. 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.
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.

Average Annual Total Returns % (As of Sep 30, 2024)

Share Class Three Months One Year Three Year Five Year Ten Year Since Inception
Investor (BIAEX), Inception: 06/29/2012 2.51 9.42 0.50 1.52 2.43 2.35
Bloomberg 1-10 Year Municipal Bond (1-12) 2.67 7.44 0.53 1.39 1.97 2.05
Gross Expense Ratios: 0.41% (Institutional) 0.46% (Investor).
Net Expense Ratios: 0.41% (Institutional) 0.46% (Investor).
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. 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. 
 
 
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 09/30/2024.
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, 2024)

Name Percentage
Black Belt Energy Gas District, 3.50% Due 10/01/2052 3.2
Main Street Natural Gas Inc, 4.94% Due 12/01/2053 2.8
Tobacco Settlement Financing Corp/RI, 5.00% Due 06/01/2035 2.3
Public Finance Authority, 4.00% Due 08/01/2059 2.1
Florida Development Finance Corp, 5.00% Due 07/01/2044 1.8
Love Field Airport Modernization Corp, 4.00% Due 11/01/2036 1.7
Suffolk County Water Authority, 3.25% Due 06/01/2042 1.7
Texas Municipal Gas Acquisition and Supply Corp II, 3.90% Due 09/15/2027 1.5
California Earthquake Authority, 5.60% Due 07/01/2027 1.5
City of Fort Worth TX, 5.25% Due 03/01/2043 1.5
Source: U.S. Bank Fund holdings include cash and equivalents and are subject to change and should not be considered 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.
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. The Fund is non-diversified meaning its assets may be concentrated in fewer individual holdings than diversified Funds. Municipal securities may decrease in value during times when tax rates are falling. The Fund’s investments are affected by changes in federal income tax rates applicable to, or the continuing federal tax-exempt status of, interest income on municipal obligations. In addition, the Fund is susceptible to risks from investments in derivatives, 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.
© 2023 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.”  Brown Advisory Mortgage Securities Fund was rated against the following numbers of U.S. domiciled Intermediate Government Funds over the following time periods: 262 Funds in the last three year, 240 Funds in the last five year and 176 Funds in the last ten year period ending 09/30/2024.With respect to these U.S. Intermediate Government Funds, Brown Advisory Mortgage Securities Fund received a Morningstar Rating of 5 stars, 4 stars and 4 stars for the three-year, five year and ten year periods, respectively.
Morningstar Rating™ as of 09/30/20234 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 09/30/2024. 
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.