Fund Evaluator:

Brown Advisory Tax Exempt Bond Investor Overview

Brown Advisory Tax Exempt Bond Investor (BIAEX) is an actively managed Municipal Bond Muni National Interm fund. Brown Advisory Funds launched the fund in 2012.

The investment seeks to provide a high level of current income exempt from Federal income tax by investing primarily in intermediate-term investment grade municipal bonds. The fund normally will invest at least 80% of the fund's net assets (plus borrowings for investment purposes) in securities the interest of which is exempt from Federal income taxes and that do not subject shareholders to the federal alternative minimum tax ("AMT"). It may invest up to 20% of its assets in securities that may fully subject shareholders to Federal income tax, including the AMT. The fund is non-diversified.

About Brown Advisory Tax Exempt Bond Investor (BIAEX)

There are 2 members of the management team with an average tenure of 11.34 years: Stephen Shutz (2012), Joshua Perry (2017). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg Municipal 1-15 Yr TR USD index with a weighting of 100%. Brown Advisory Tax Exempt Bond Investor has 202 securities in its portfolio. The top 10 holdings constitute 17.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Brown Advisory Tax Exempt Bond Investor is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Brown Advisory Tax Exempt Bond Investor has 1.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.5% (98.4% domestic bond, 1.1% foreign bond and 0.0% convertible bond). Brown Advisory Tax Exempt Bond Investor has 0.5% of the portfolio in cash.

Assets Under Management

The fund has $28 million in total assets, which is below the $1 billion average for the Muni National Interm category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

BIAEX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Brown Advisory Tax Exempt Bond Investor expense ratio is average compared to funds in the Muni National Interm category. Brown Advisory Tax Exempt Bond Investor has an expense ratio of 0.46%, which is 32% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Brown Advisory Tax Exempt Bond Investor has a portfolio turnover rate of 40%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 39% for the Muni National Interm category.

Recently, in the month of June 2026, Brown Advisory Tax Exempt Bond Investor returned 0.6%, which earned it a grade of C, as the Muni National Interm category had an average return of 0.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Brown Advisory Tax Exempt Bond Investor has a trailing yield of 3.76%, which is above the 3.21% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Brown Advisory Tax Exempt Bond Investor Grades

Year to date, the fund has returned 2.1%, 0.1 percentage points better than the category, which translates into a grade of B. The fund has returned 7.0% over the past year (grade of A), 4.6% over the past three years (grade of A) and 1.6% per year over the past five years (grade of A) and 2.5% per year over the past 10 years (grade of A).

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