Indices:

The Bloomberg Intermediate US Aggregate Bond Index is a market index of high quality, domestic fixed income securities with maturities of less than 10 years.

The Bloomberg Mortgage Backed Securities Index is an unmanaged index comprising 15- and 30-year fixed-rate securities backed by mortgage pools of Ginnie Mae, Freddie Mac and Fannie Mae.

The Bloomberg 1-10 Year Blended Municipal Bond Index is a market index of high quality, domestic fixed income securities with maturities of less than 10 years.

The Bloomberg U.S. Aggregate Bond Index is an unmanaged, market-value weighted index comprised of taxable U.S. investment grade, fixed rate bond market securities, including government, government agency, corporate, asset-backed, and mortgage-backed securities between one and 10 years.

"Bloomberg®” and Bloomberg Indexes are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Brown Advisory. Bloomberg is not affiliated with Brown Advisory, and Bloomberg does not approve, endorse, review, or recommend Brown Advisory strategies. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to Brown Advisory strategies.

The MSCI World Index captures large and mid-cap representation across multiple Developed Markets (DM) countries.The index covers approximately 85% of the free float-adjusted market capitalization in each country. All MSCI indexes and products are trademarks and service marks of MSCI or its subsidiaries. 

The MSCI ACWI (All Country World Index), MSCI’s flagship global equity index, is designed to represent performance of the full opportunity set of large- and mid-cap stocks across developed and emerging markets. As of May 2022, it covers more than 2,933 constituents across 11 sectors and approximately 85% of the free float-adjusted market capitalization in each market. All MSCI indexes and products are trademarks and service marks of MSCI or its subsidiaries. 

The MSCI ACWI (All Country World Index) ex USA Index captures large and mid cap representation across Developed Markets (DM) countries (excluding the US) and Emerging Markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the US. All MSCI indexes and products are trademarks and service marks of MSCI or its subsidiaries. 

The MSCI Emerging Markets Index captures large and mid cap representation across Emerging Markets (EM) countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country. All MSCI indexes and products are trademarks and service marks of MSCI or its subsidiaries. 

The MSCI Europe Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe. The MSCI Europe Index consists of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

All MSCI indexes and products are trademarks and service marks of MSCI or its subsidiaries.

The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.

The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 2000® Value Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values.

The Russell 2000® Index consists of the smallest 2,000 companies in a group of 3,000 U.S. companies in the Russell 3000 Index, as ranked by market capitalization.

The Russell MidCap Growth Index is an unmanaged index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.

Russell® and other service marks and trademarks related to the Russell indexes are trademarks of the London Stock Exchange Group Companies.

The S&P 500 Index, an unmanaged index, consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times number of shares outstanding), with each stock's weight in the Index proportionate to its market value.

Standard & Poor’s, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a subsidiary of S&P Global Inc.

The Secured Overnight Financing Rate (SOFR) is the overnight interest rate for US dollar-denominated loans and derivatives. SOFR measures the cost to a bank of borrowing cash overnight, and so represents the amount of interest that a bank will have to repay to the lender the following day.

The Sterling Overnight Interbank Average rate (SONIA) is the effective overnight interest rate paid by banks for unsecured transactions in British sterling. It is the overnight funding charge for trades that occur in off-market hours and represents the amount of overnight business in the marketplace.

The Tokyo Stock Price Index (TOPIX) is a market capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange.

One cannot invest directly in an index.

Financial Terms:

The 30-Day SEC Yield (Unsubsidized) is computed under an SEC standardized formula based on income net income earned over the past 30 days excluding expense reimbursements.

The 30-Day SEC Yield (Subsidized) is computed under an SEC-standardized formula based on net income earned over the past 30 days.

Active Share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the manager's portfolio versus the weight of each holding in the benchmark index and dividing by two.

Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index.

Average Life is the average period of time for all principal dollars to be returned to investors.

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.

Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income.

Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. Without cash, it's tough to develop new products, make acquisitions, pay dividends and reduce debt.

Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.

Correlation: Negative price correlation means that as one security moves up or down the other security will move by an equal amount in the opposite direction.

Debt/Equity Ratio is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.

Dividend Yield: A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.

Distribution Yield: The amount of cash flow received or paid out by an annuity, REIT or other similar income paying instrument. The distribution yield of a security is calculated by dividing the distributions paid (yearly, monthly, etc.) by its cost or net asset value. Distribution yield can be used as a measure of investment cash flow provided by an investment relative to the cost paid for that investment.

Estimated EPS Growth Rate: Estimated EPS Growth Rate is the forecasted growth rate of a company's earnings per share.

Earnings Growth 2-year Forward Est. is the forecasted growth rate of a company's earnings per share. Estimated EPS Growth Rate is not a measure of the Fund's future performance.

Forward P/E Ratio: The Forward P/E Ratio is determined by dividing the price of the stock by the company's forecasted earnings per share.

P/E Growth Ratio: The P/E Growth Ratio is the P/E divided by the company's earnings growth rate.

Price to Book Ratio is a ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.

Price to Cash Flow ratio is determined by dividing the price of the stock by the per-share operating cash flow. One year period ended last day of previous month. Not valid for accounts open less than one year.

Market Capitalization is the value of the fund as determined by the market price of its issued and outstanding stock. The Weighted Average Market Capitalization of a portfolio equals the average of each holding's market cap, weighted by its relative position size in the portfolio (in such a weighting scheme, larger positions have a greater influence on the calculation).

Return On Equity - ROE: The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. ROE is expressed as a percentage and calculated as: Return on Equity = Net Income/Shareholder's Equity.

Return on Invested Capital measures how much profit a company earns on its invested capital in a given year. It is calculated as a percentage of a company's net operating profit after tax divided by its average invested capital.

Trailing P/E Ratio: The sum of a company's price-to-earnings, calculated by taking the current stock price and dividing it by the trailing earnings per share for the past 12 months.

Weighted Average Market Cap is the market price of an entire company, calculated by multiplying then umber of shares outstanding by the price per share.

Yield to worst is calculated by making worst-case scenario assumptions on the issue by calculating the returns that would be received if provisions, including prepayment, call or sinking fund, are used by the issuer.

Mutual Fund Contact Information

How to Invest

You may purchase shares of the Brown Advisory Mutual Funds directly through the transfer agent, US Bancorp, by completing the appropriate application below. You may also purchase shares of Brown Advisory Mutual Funds through brokers that distribute the funds. Please call 1-800-540-6807 with any questions on purchasing options.

What Makes Brown Advisory Different

We founded Brown Advisory with a simple vision: to build a client-first investment firm. Today, we are fortunate to provide investment solutions to individuals, families and institutions in all 50 U.S. states and in 44 countries and territories around the world. We are deeply committed to our clients, and focus exclusively on helping them plan and implement thoughtful investment strategies. This focus extends to the retirees, students, nonprofit beneficiaries and many others who may never meet us but nevertheless depend on us as trusted stewards of capital.

Our Mission

Brown Advisory is a private, independent investment and strategic advisory firm. Our mission is to make a material and positive difference for our clients by delivering a combination of first-class investment performance, strategic advice and the highest level of service.

A Private Firm with a Shared Ownership Structure

Brown Advisory has been a private, independent and colleague-owned firm since 1998. Every colleague is an equity owner, and together our colleagues own approximately 70% of the firm. The remaining 30% is owned by select outside investors who provide insight, perspective and stability. All of these owners are aligned in the desire to build a firm that puts clients above all else.

Transparency

We are a firm of 750+ people, fourteen offices, six primary client segments, nearly 40 groups and countless teams. Transparency is critical so that we can all operate from the same playbook. We share meeting minutes from all operating committee meetings with all colleagues, so we collectively understand decision-making as it filters through the organization. Additionally, our intranet platform, B|Advised, draws on modern sharing and collaboration tools to enable rapid information transfer as well as open, firmwide conversations on topics ranging from investments to diversity and inclusion.

Sustainable Investing

It’s a path to investment performance, a way to reflect your values, an opportunity to make an impact on the world. We aim to deliver sustainable and mission-aligned investment solutions to our clients built on first-rate performance, thoughtful advice and the highest level of service.

Learn More

Diversity, Equity and Inclusion

Brown Advisory should be an environment that mirrors the fabric of the communities in which we work and live—one that supports colleagues in their effort to contribute at the highest level and reach their potential. We know that this will be a continuous journey—success is a progression, not a point in time. We will always be asking ourselves, “What's next?”

Learn More

Community and Society

Our firm has always emphasized community service as a core value and purposefully recruited civic-minded colleagues who share that value.

Learn More

A "Morning Meeting" Mindset

Our Morning Meeting is a cultural cornerstone at Brown Advisory. Every morning, we gather the entire firm—each office gathers in person, and all offices connect via video conference—to discuss a topic or idea that is relevant to our investment thinking or to the culture of the firm. We ring the bell to start the meeting at 8:35 a.m. Eastern Time. The meeting represents many facets of our culture that we hold dear: thoughtful discussion, active listening, flat organization, collegial atmosphere and encouragement of new ideas.

Learn More