The Brown Advisory Strategic Bond Fund seeks to achieve capital appreciation and income with low correlation to interest rate movements.
The Strategic Bond Fund combines bottom-up credit analysis with relative value analysis to build a portfolio that is concentrated based on credit selection, with interest rate hedges, dynamic sector allocation, and opportunistic investments. In pursuit of this, the fund invests at least 80% of its net assets in a broad set of fixed income securities, such as U.S. Government securities, corporate fixed income securities, high yield bonds, bank loans and collateralized loan obligations, tax-exempt municipal bonds, U.S. Treasury bonds, Treasury inflation-protected securities (TIPS), mortgage-backed and asset-backed securities, and derivatives.
The fund is not managed to a benchmark. This flexibility allows the managers to invest in fixed-income securities of any maturity and/or credit quality rating. Under normal circumstances, the fund's portfolio will seek to have a duration of 1 to 3 years.