Tax-Exempt Sustainable Bond Fund

Overview

The Brown Advisory 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 sustainable investment criteria.​

We believe that our concentrated and active approach, combined with fundamental research, holistic risk management and a differentiated sustainable investment approach, can help deliver repeatable outcomes and attractive risk- adjusted returns through the economic cycle. The Fund may invest in fixed income securities that are referred to as “Green Bonds,”, “Social Bonds,”, or “Sustainability Bonds.” In addition, all capital gains are subject to Federal and state taxes.

Our investment philosophy is grounded in the following principles.​

Incorporated Research​

  • Focusing on the intersection of bottom-up fundamental credit research and sustainable investment research, we seek to identify opportunities aligned with delivering strong performance and positive sustainability outcomes.​

Active Management

  • Constant competition for capital ensures that the portfolio reflects our best ideas and relative value opportunities.​

Diversification

  • Bottom-up credit selection drives performance and results in diversification across municipal sector allocations, credit-specific revenue sources, and sustainability levers. ​

Credit Quality Distribution (%)

(As of Dec 31, 2025)

Fund Benchmark
AAA/Aaa 13.6 19.8
AA/Aa 52.8 56.6
A 28.5 19.6
BBB 5.1 3.3
High Yield – 0.3
Not Rated – 0.5
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. Quality distribution allocations include cash and equivalents and are subject to change at any time and should not be considered recommendations 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.​​

Duration Distribution (%)

(As of Dec 31, 2025)

Fund Benchmark
>10 Years 2.3 1.8
7 to 10 Years 33.4 23.5
5 to 7 Years 13.7 21.1
3 to 5 Years 17.2 22.5
1 to 3 Years 18.0 24.5
<1 Year 15.4 6.5
Source: FactSet®. Duration distribution allocations include cash and equivalents and are subject to change at any time and should not be considered recommendations 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 Diversification

(As of Dec 31, 2025)

Sector Fund Benchmark
General Obligation 18.0 29.5
Pre-Refunded — 2.0
Revenue 80.1 68.4
Cash 1.9 —
Source: Advent Portfolio Exchange® for Fund data, FactSet® for benchmark data. Portfolio diversification includes cash and equivalents and are subject to change at any time. Figures may not total 100% due to rounding. Cash balances can be negative to reflect economic exposure to derivatives and other forward contracts.​

Characteristics

(As of Dec 31, 2025)

Portfolio Attribute Fund Benchmark
Effective Duration (years) 4.8 4.8
Avg. Life (years) 7.4 6.3
30-Day SEC Yield (%) 3.40 —
# of Holdings 40 49,085
Source: FactSet®. Characteristics include cash and equivalents, and are calculated gross of fees unless noted otherwise. ​ 

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​ 

Diversification does not assure a profit, nor does it protect against a loss in a declining market. ​ 

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.​ 

Prior to May 31, 2025, the Fund’s performance benchmark index was the Bloomberg 1-10 Year Blended Municipal Bond Index.​ 

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in Asset-Backed and Mortgage- Backed securities include additional risks that investor should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. In addition, the fund is susceptible to risks from investments in derivatives, U.S. Government securities, municipal securities and its investments in other investment companies.​ 

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. ​ 

1Fund net assets provided by U.S. Bank and are as of the last day of the quarter and include all share classes. ​ 

FactSet® is a registered trademark of FactSet Research Systems, Inc.​ 

Advent Portfolio Exchange® is a registered trademark of Advent Software, Inc​ 

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 (BITEX), Inception: 12/02/2019 1.68 4.56 3.93 0.98 — 1.18
Bloomberg Municipal 1–15 Year Index 1.41 5.18 3.75 1.16 — 1.79
Gross Expense Ratio: 0.48% (Investor).
Net Expense Ratio: 0.48% (Investor). 

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 Bloomberg Municipal Bond 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. 

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​ 

Diversification does not assure a profit, nor does it protect against a loss in a declining market. ​ 

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.​ 

Prior to May 31, 2025, the Fund’s performance benchmark index was the Bloomberg 1-10 Year Blended Municipal Bond Index.​ 

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in Asset-Backed and Mortgage- Backed securities include additional risks that investor should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. In addition, the fund is susceptible to risks from investments in derivatives, U.S. Government securities, municipal securities and its investments in other investment companies.​ 

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. ​ 

1Fund net assets provided by U.S. Bank and are as of the last day of the quarter and include all share classes. ​ 

FactSet® is a registered trademark of FactSet Research Systems, Inc.​ 

Advent Portfolio Exchange® is a registered trademark of Advent Software, Inc​ 

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
California Earthquake Authority, 5.60% Due 07/01/2027 3.3
Maryland Health & Higher Educational Facilities Authority, 5.00% Due 08/15/2038 3.0
First American Government Obligations Fund, 3.66% 2.9
New York Liberty Development Corp, 3.13% Due 09/15/2050 2.5
Northside Independent School District, 3.55% Due 06/01/2050 2.3
Health Educational and Housing Facility Board of the City of Memphis/the, 5.00% Due 07/01/2027 1.8
Newport News Economic Development Authority, 5.00% Due 12/01/2038 1.8
Louisville/Jefferson County Metropolitan Government, 1.20% Due 10/01/2039 1.8
University of Wisconsin Hospitals & Clinics, 1.25% Due 04/01/2048 1.8
North Dakota Housing Finance Agency, 4.60% Due 07/01/2043 1.7
Total 22.9
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 Fund, 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. 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​ 

Diversification does not assure a profit, nor does it protect against a loss in a declining market. ​ 

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.​ 

Prior to May 31, 2025, the Fund’s performance benchmark index was the Bloomberg 1-10 Year Blended Municipal Bond Index.​ 

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in Asset-Backed and Mortgage- Backed securities include additional risks that investor should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. In addition, the fund is susceptible to risks from investments in derivatives, U.S. Government securities, municipal securities and its investments in other investment companies.​ 

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. ​ 

1Fund net assets provided by U.S. Bank and are as of the last day of the quarter and include all share classes. ​ 

FactSet® is a registered trademark of FactSet Research Systems, Inc.​ 

Advent Portfolio Exchange® is a registered trademark of Advent Software, Inc​ 

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.​