Sustainable Bond Fund

Shining sun behind green mountains
Fact Sheet

Investment approach

The Fund seeks impact through by investing in a concentrated portfolio of high-conviction bonds that have undergone concurrent fundamental and sustainable investment research. In pursuit of this goal, the Fund will invest at least 80% of the value of its net assets (plus borrowings for investment purposes) in fixed income securities of issuers that satisfy the Fund's investment and sustainability-related criteria. The Fund invests in corporate, municipal, mortgage-backed and asset-backed fixed income securities that are issued as “Green Bonds” or that otherwise meet the Fund’s sustainability-related criteria. Additionally, the Fund also invests in securities issued by the U.S. Government and foreign government entities that are both dollar-and non-dollar-denominated.

Fund profile

The Fund’s portfolio will generally seek to have an average dollar weighted maturity between 6 and 11 years and an average duration of 3 to 7 years.

Credit Quality Distribution (%)

(As of Dec 31, 2023)

Fund Benchmark
AAA/Aaa 71.1 72.9
AA/Aa 0.8 2.5
A 6.7 11.9
BBB 20.2 11.8
High Yield 1.0 0.6
Not Rated – 0.01
AA- 0.1 —
AA+ – 0.3
A+ – —
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 12/31/2023.

Duration Distribution (%)

(As of Dec 31, 2023)

Fund Benchmark
< 1 Year 9.5 1.1
1 to 3 Years 18.7 24.7
3 to 5 Years 24.0 21.6
5 to 7 Years 20.2 19.4
7 to 10 Years 16.6 16.8
Greater than 10 Years 11.0 16.3
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.

Portfolio Sector

(As of Dec 31, 2023)

Sector Fund Benchmark
Cash & Equivalents -8.4 —
US Government 20.3 42.9
Non-US Government 17.7 2.6
Corporate 27.0 25.0
Mortgage 34.3 26.7
CMBS 1.3 1.7
ABS 6.4 0.5
Municipal 1.4 0.6
Unassigned — —
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.

Characteristics

(As of Dec 31, 2023)

Portfolio Attribute Fund Benchmark
Avg. Credit Quality Aa2 Aa2
Effective Duration (years) 6.4 6.2
Yield to Worst (%) 4.7 4.5
Avg. Life (years) 9.0 8.8
30-Day SEC Yield Unsubsidized (%) 4.08 —
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. 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 Fund. 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.  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. 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 12/31/2023.  
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.

Performance

Average Annual Total Returns % (As of Dec 31, 2023)

Share Class Three Months One Year Three Year Five Year Ten Year Since Inception
Investor (BASBX), Inception: 08/07/2017 6.49 3.41 -3.75 1.12 — 0.82
Bloomberg Aggregate Bond Index 6.82 5.53 -3.31 1.10 — 0.95
Gross Expense Ratio: 0.47% (Institutional), 0.52% (Investor).
Net Expense Ratio: 0.47% (Institutional), 0.52% (Investor).
Returns greater than one year are annualized.
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. Performance for other share classes will vary. 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.
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 Fund. 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. 
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 12/31/2023.
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 Dec 31, 2023)

Name Percentage
United States Treasury Note/Bond, 4.13% Due 08/15/2053 4.8
International Bank for Reconstruction & Development, 0.63% Due 04/22/2025 3.5
European Investment Bank, 2.75% Due 08/15/2025 3.4
European Investment Bank, 1.38% Due 03/15/2027 3.3
Inter-American Development Bank, 0.88% Due 04/20/2026 3.0
Kreditanstalt fuer Wiederaufbau, 0.63% Due 01/22/2026 2.6
Asian Development Bank, 2.88% Due 05/06/2025 2.6
United States Treasury Note/Bond, 1.88% Due 02/15/2032 2.6
United States Treasury Strip Coupon, 0.00% Due 05/15/2043 2.2
G2SF 2 1/21, 2.00% 2.2
Total 30.1
Source: U.S. Bank. Portfolio holdings include cash and equivalents. Fund holdings are subject to change 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 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.
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.
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.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
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 Fund. 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. 
Total assets under management value as of 12/31/2023. 
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.