The Brown Advisory Strategic Bond Fund seeks to achieve capital appreciation and income with low correlation to interest rate movements.

Investment approach

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.

Fund profile

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.

(As of Sep 30, 2018)

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 09/30/2018.

(As of Sep 30, 2018)

Fund Benchmark
AAA/Aaa 30.5 77.2
AA/Aa 9.2 3.4
A 11.3 8.8
BBB/Baa 25.3 10.6
High Yield 22.4 0.0
Other 1.3 0.0
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 09/30/2018.

(As of Sep, 30, 2018)

Sector Fund Benchmark
Cash & Equivalents 4.90
Treasuries/U.S. Agencies 43.00
Securitized 55.70 37.00
Corporates 35.60 21.00
Municipal - Revenue 1.50
Municipal - Taxable 2.30
Source: FactSet® † Securitized sector weights include Mortgage-Backed Securities (MBS), Commercial MBS and Assetbacked Securities (ABS). # Cash balance can be negative to reflect economic exposure to derivatives and other forward contracts. Sector diversification include cash and equivalents and are subject to change andshould 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.

(As of Sep 30, 2018)

Portfolio Attribute Fund Benchmark
Yield to Worst (%) 4.1 3.3
30-Day SEC Yield (Subsidized) (%) 3.68
# of Holdings 278
Dividend Frequency Monthly
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.

Average Annual Total Returns % (As of Dec 31, 2018)

Share Class Three Months YTD One Year Three Year Five Year Ten Year Since Inception
Investor (BATBX), Inception: 09/30/2011 -0.77 0.32 0.32 2.55 1.52 1.02
Bloomberg Barclays Intermediate Aggregate Bond Ind 1.80 0.92 0.92 1.72 2.09 0.00 1.91
Institutional (BIABX), Inception: 10/31/2014 -0.76 0.47 0.47 2.78 1.24
Bloomberg Barclays Intermediate Aggregate Bond Ind 1.80 0.92 0.92 1.72 1.63
Gross Expense Ratios: 0.70% (Investor), 0.65% (Institutional). 
Returns greater than one year are annualized.
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, 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. Short-term performance, in particular, is not a good indication of the Fund’s future performance, and an investment should not be made based solely on returns.

(As of Sep 30, 2018)

Name Percentage
First American Government Obligations Fund, 2.00% 7.9
Fannie Mae Pool, 5.00% 2.5
DT Auto Owner Trust 2016-1 2016-1A D, 4.66% Due 12 1.2
Carlyle US Clo 2017-2 Ltd 2017-2A A1B, 3.57% Due 0 1.2
Neuberger Berman Loan Advisers CLO 26 Ltd 2017- 26 1.2
Dollar Tree Inc, 3.04% Due 04/17/2020 1.2
Treman Park CLO Ltd 2015-1A AR, 3.72% Due 04/20/20 1.2
Goldentree Loan Opportunities XI Ltd 2015-11A AR2, 1.2
United States Treasury Bill, 0.00% Due 11/29/2018 1.2
Carlyle Global Market Strategies CLO 2013-4 Ltd 20 1.2
Source: U.S. Bank. Fund holdings include cash and equivalents and are subject to change and should not be considered 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.
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 lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Municipal securities are subject to adverse political or economic factors, including changes in the tax law. Inflation-indexed bonds see the principal value of the security increased as the Consumer Price Index increases. Should the Consumer Price Index decline, those securities should be adversely impacted. A non-diversified fund may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, non-diversified Fund is more exposed to individual stock volatility than a diversified fund. The Fund may invest in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. In addition, the fund is susceptible to risks from investments in derivatives, U.S. Government securities, ETFs, and Mortgage- and Asset-Backed securities.
Total assets under management value as of 09/30/2018. 
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.