The Brown Advisory Tax-Exempt Sustainable Bond Fund seeks to provide a high level of current income exempt from Federal income tax by investing primarily in intermediate-term investment grade municipal bonds while giving special consideration to certain environmental, social, and governance (ESG) criteria.

Investment approach

The portfolio managers believe that bottom-up credit research, in conjunction with integrated and proprietary ESG analysis, helps build a portfolio concentrated in their best ideas and which has the potential to provide attractive risk-adjusted total return over time. To achieve this, the Fund will invest at least 80% of the value of its net assets in fixed income securities which generate interest that is exempt from the interest of which is exempt from Federal income taxes, that do not subject shareholders to the federal alternative minimum tax (“AMT”), and that have either an obligor or a use of proceeds that satisfies the Fund’s ESG criteria. The Fund may invest up to 20% of its assets in securities that may fully subject shareholders to Federal income tax, including the AMT. The Fund may invest in fixed income securities that are referred to as Certain of the fixed income securities that the Fund may invest in are often referred to as “Green Bonds,”, “Social Bonds,”, or “Sustainability Bonds.”. In addition, all capital gains are subject to Federal and state taxes. 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 in a small number of issuers.

Fund profile

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

 

(As of Jun 30, 2020)

Fund Benchmark
AAA/Aaa 12.8 17.4
AA/Aa 40.8 53.1
A 29.3 21.1
BBB 16.0 6.7
High Yield 0.1
Not Rated 1.1 1.7
Source: FactSet® Credit quality is calculated using ratings assigned by Moody’s. If Moody’s does not rate a holding thenStandard & Poor’s is used. If Moody’s and Standard & Poor’s do not rate a holding then Fitch is used. A bondis considered investment grade if its credit rating is BBB-or higher according to Standard & Poor’s; morespecifically, a rating of“AAA”represents the highest credit quality with minimal risk of default and a ratingof“BB”or below represents speculative financial security. High Yield, if noted, includes holdings that arerated BB+ or lower according to Moody’s. Not Rated category, if noted, includes holdings that are not ratedby any rating agencies. All ratings are as of 06/30/2020 .

(As of Jun 30, 2020)

Fund Benchmark
>10 Years 4.2 0.4
7 to 10 Years 15.3 5.9
5 to 7 Years 24.5 21.9
3 to 5 Years 20.6 31.0
1 to 3 Years 24.4 34.1
<1 Year 11.1 6.8
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.

(As of Jun 30, 2020)

Sector Fund Benchmark
General Obligation 13.7 32.5
Pre-Refunded 1.8 10.1
Revenue 82.9 57.4
Cash 1.6
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.

(As of Jun 30, 2020)

Portfolio Attribute Fund Benchmark
Avg. Credit Quality A1 Aa3
Effective Duration (years) 4.5 3.8
Avg. Life (years) 5.1 4.2
30-Day SEC Yield Unsubsidized(%) 1.23
Source: FactSet® . Characteristics include cash and equivalents

Average Annual Total Returns % (As of Jun 30, 2020)

Share Class Three Months YTD One Year Three Year Five Year Ten Year Since Inception
Investor (BITEX), Inception: 12/02/2019 1.08 -0.56 -0.37
Bloomberg Barclays 1-10 Year Municipal Bond (1-12) 2.69 2.12 2.50
Gross Expense Ratios: 0.66% (Investor).
Net Expense Ratios: 0.58% (Investor).
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. 

(As of Jun 30, 2020)

Name Percentage
First American Government Obligations Fund, 0.06% 7.1
New York City Water & Sewer System, 0.13% Due 06/15/2043 3.0
State of Texas, 4.50% Due 08/01/2029 2.3
City of Aurora CO Water Revenue, 5.00% Due 08/01/2041 2.2
District of Columbia Water & Sewer Authority, 5.00% Due 10/01/2039 2.2
Dallas/Fort Worth International Airport, 5.25% Due 11/01/2030 2.0
New York Liberty Development Corp, 5.00% Due 09/15/2040 1.9
California Infrastructure & Economic Development Bank, 0.32% Due 10/01/2047 1.8
Metropolitan Water Reclamation District of Greater Chicago, 5.00% Due 12/01/2030 1.7
State of Illinois, 5.00% Due 11/01/2026 1.7
Total 26.1
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 1100, Denver, CO 80203. Brown Advisory Funds and ALPS are not affiliated.
Total assets under management value as of 06/30/2020. 
 
Brown Advisory LLC (the “Adviser”) has contractually agreed to waive its fees and/or reimburse certain expenses (exclusive of any front-end or contingent deferred sales loads, taxes, interest, brokerage commissions, acquired fund fees and expenses, expenses incurred in connection with any merger or reorganization and extraordinary expenses) in order to limit the Total Annual Fund Operating Expenses after Fee Waiver and/or Expense Reimbursement for Investor Shares to 0.57% of the Fund’s average daily net assets through October 31, 2021. The Fund may have Total Annual Fund Operating Expenses after Fee Waiver and/or Expense Reimbursement higher than these expense caps as a result of any acquired fund fees and expenses or other expenses that are excluded from the calculation. The contractual waivers and expense reimbursements may be changed or eliminated at any time by the Board of Trustees, on behalf of the Fund, upon 60 days written notice to the Adviser. The contractual waivers and expense reimbursements may not be terminated by the Adviser without the consent of the Board of Trustees. The Adviser may recoup any waived amount from the Fund pursuant to this agreement if such reimbursement does not cause the Fund to exceed existing expense limitations or the limitations in place at the time the reduction was originally made, and the reimbursement is made within three years after the date on which the Adviser incurred the expense.
 
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.