https://www.sec.gov/Archives/edgar/data/1342947/000121390024062820/ea0209708-01_497.htm
497 1 ea0209708-01_497.htm 497
BBH TRUST
BBH PARTNER FUND – SMALL CAP EQUITY
(BBHSX)
SUPPLEMENT DATED JULY 19, 2024 TO THE
PROSPECTUS
AND STATEMENT OF ADDITIONAL INFORMATION
DATED FEBRUARY 28, 2024
The following information supplements, and, to the extent inconsistent therewith, supersedes, certain information in the Prospectus and Statement of Additional Information. Unless otherwise noted, capitalized terms used in this supplement have the same meaning as defined in the Prospectus and Statement of Additional Information.
I. FUND LIQUIDATION
On July 19, 2024, the Board of Trustees of BBH Trust (the “Trust”) approved a Plan of Liquidation for the BBH Partner Fund – Small Cap Equity (the “Fund”) pursuant to which the Fund will be liquidated (the “Liquidation”) on or about the earlier of (i) September 30, 2024 and (ii) the date in which all shareholders have redeemed their respective shares in the Fund (the “Liquidation Date”). Shareholder approval of the Liquidation is not required.
Beginning on July 19, 2024 through the Liquidation Date, the Fund may depart from its stated investment objective and policies as it liquidates holdings in preparation for the distribution of assets to investors. During this time, the Fund may hold more cash or cash equivalents than normal, which may prevent the Fund from meeting its stated investment objective. Shareholders of record as of the close of business on the Liquidation Date will receive their proportionate interest in all of the net assets of the Fund in complete cancellation and redemption of all the outstanding shares of the Fund. Payment will be made in accordance with instructions from each shareholder. If a shareholder has not provided instructions by the time proceeds are distributed, that shareholder’s liquidation proceeds shall be distributed based on the payment instructions on file for such shareholder with the Fund’s Transfer Agent. For those accounts with no bank instructions on file with the Fund’s Transfer Agent, the Transfer Agent shall issue a check. If required by the Internal Revenue Code of 1986, the Fund will make an income distribution prior to the Liquidation Date.
Shareholders of the Fund may redeem their investments as described in the Fund’s Prospectus prior to the Liquidation Date.
If the Fund has not received your redemption request or other instruction by the Liquidation Date, your shares will be redeemed on the Liquidation Date, and you will receive your proceeds from the Fund, subject to any required withholding.
The Adviser will bear all expenses of the Liquidation to the extent such expenses are not part of the Fund’s normal and customary fees and operating expenses. However, the Fund and its shareholders will bear transaction costs and any potential tax consequences associated with turnover of the Fund’s portfolio.
The liquidation of the Fund, like any redemption of Fund shares, will constitute an event upon which a gain or loss may be recognized for state and federal income tax purposes, depending on the type of account and the adjusted cost basis of the investor’s shares. The tax year for the Fund will end on the Liquidation Date. Please contact your tax advisor to discuss the tax consequences to you of the liquidation.
II. CLOSURE OF THE FUND TO PURCHASES
Effective as of the close of business on July 19, 2024, the Fund will be closed to purchases of Fund shares, however, the Fund’s closure to purchases of Fund shares does not restrict any shareholders from redeeming shares of the Fund.
The Fund’s ability to enforce the closure of the Fund to purchases with respect to certain retirement plan accounts and accounts held by financial intermediaries may vary depending on systems capabilities, applicable contractual and legal restrictions and cooperation of those retirement plans and intermediaries.
Please contact the Fund at 1-800-575-1265 if you have any questions.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.

In response to the discussion board:
CrossingBridge has commented in investor letters of exposure to the Nordic bond market and reasoning for holding these investments among its strategies.
Over the next several months, CrossingBridge will prepare a presentation on the Nordic bond market to share.
In the interim, CrossingBridge continues to invest in the asset class in its strategies.
As a general rule, foreign currency investments are hedged back to US Dollars.
For those curious or impatient to learn more, feel free to reach out to [email protected] to set up a call for a discussion on the Nordic debt market.

Please advise board when this fund begins trading as well as brokerage availability. Calls to John Conner this week - 914-496- 0829- were not returned. Perhaps incorrect # or he is on vacation.

BLNDX / REMIX name has "Multi-Asset". I checked that those include stock ETFs, long-short derivatives and cash-equivalents to support derivative positions - and that it!
This isn't what a typical multi-asset fund has - stocks, bonds and alternatives (that may include some derivatives).
It has certainly done well. The fund inception was 12/2019 and the AUM is $1 billion. Right out of the gate, it managed the pandemic well, and then avoided the 2022 selloff. That is handling 2 tough events well in its short life. But posters should be cautious with funds with unusual strategies - the hot hands may cool or Lady Luck could look the other way.
Here is @David_Snowball's feature on it in January 2024 MFO,
https://www.mutualfundobserver.com/2024/01/standpoint-multi-asset-fund-blndx-remix/

Ok, I got it.
MM pays now 5+% but for years it pays under 1%. A couple of year from now it will be much lower. I can always find pretty good risk/reward bond funds but that's my specialty.
Logins at 4 weeks interval and not interested too much tell me Fidelity is better for you.
How can $250K sit idle? Suppose I sell 1 million and buy $950K(5% less than a million) it's only $50K. To have $250K sitting idle means you sold $5 million. I'm a stickler in that dept, if I see $100 left, I invest it.
Taking care of my money and logging in 10 minutes 2-3 times per week is worth it. I always check all my other financial institution sites too. IMO, It's a must in the digital world to protect and verify your assets.
I only invest in funds/ETFs, very rarely, I trade leveraged CEFs for hours/days when I see a good trade, like 2020, or 2022.
What does someone pay for RIA services?

Lucky you!
I too was heavy IOFIX from beginning of 2018 through that awful 3rd week of March 2020. A champion of the strategy and the firm, especially Tom Miner.
Junkster called it the greatest fund ever ... and I agreed with him.
IOFIX was in good company during Covid. Many got slammed. Terrible, fearful time in the markets. Perfect storm for them though.
Fortunately, they well recovered, but others like BDKNX never did. I think it's a credit to GP.
My last update with GP was November 2019, I believe. Met with them in person. The last time world was normal. And all seemed right with the fund.
I was disappointed with the odd-lot violation, but many firms (PIMCO) have been tagged with that one. The fabricated bidding for bonds they already owned is more troubling. Not sure when that occurred.
I did get back into IOFIX in late spring 2020, if I remember, thanks to Junkster's encouragement. Heavy again. I rode it all the way back, which I am very grateful for, exiting the position when it started to roll in 2022. I think many investors were quick to exit this time, as you can see in the flow data. Not wanting to make same mistake twice.
I do not know what happened after that. Do not know when Tom left GP. But IOFIX appears broken ever since. A disappointment for the firm, its investors, and me.

Just like FAIRX,SGIIX,OAKBX during 2000-10, and later 2010-17 mostly in LC tilting growth, I slowly changed to bonds, by selecting PIMIX as my first bond fund in 2010 and increasing it to over 50%, but I sold in 01/2018 and never looked back.
Then I replaced it with IOFIX for over 50% of my portfolio again. But the world experienced covid and I sold at the end of 02/2020, which is part of my system. I posted about it on the current site (https://www.mutualfundobserver.com/discuss/discussion/55299/bond-mutual-funds-analysis-act-2/p2).
I started buying again at the end of March 2020 and was fully invested by April. But, IOFIX lost it's mojo in 2021 and I discarded it like I did with many others before.
The lesson, I make good money with special bond funds, but I'm very careful and sell immediately when the risk is high; in fact, I sell everything anyway.
I follow this song (https://www.youtube.com/watch?v=7hx4gdlfamo)

Thanks. I'm usually skeptical of faith-based and veterans-based funds (USAA). Ever since I came across Timothy "Biblically Responsible" Funds (see family table below), which is perpetually on the bottom of our Fund Family Scorecard, likely because of high fees.
But AVEFX seems to be a frequent Great Owl. It pops-up on a MultiSearch screen requesting top quintile 3-year rolling averages over last 10 years, with the added constraint of never losing money in any of those 3-year periods. As does, Azzad Wise Capital WISEX. Another faith-based fund, but this time Islamic. Azzad is based in Falls Church, VA. Schwartz is based in Plymouth, MI. Timothy in Maitland, FL.

@FD1000
We're talking past each other because we don't have the same needs from a brokerage or RIA.
- I'm never 100% in the market so cash earning a competitive rate vs. nothing matters to me.
- I do not have time to login to my Schwab account daily. Sometimes it might easily be 4 weeks between logins. Terrible waste of my time to login daily to prevent opportunity cost of idle cash.
- Lost interest being peanuts. Relative to each individual investor as to what is considered peanuts. For example $250K sitting idle for 4 weeks costs $962 at a rate of 5%. Not a princely sum but no reason for me to pad Schwab's pockets.
- I'm not a fan of layering unnecessary costs(RIA) but in my case I get access to investment instruments that I can't otherwise get without a RIA so cost/benefit to me totally worth it, it isn't even a close call.
- The flat fee advisory model isn't a substitute for what I need from an RIA + most advisors aren't familiar with Alts. The boilerplate allocation stuff can be spit out by a robo advisor, don't need a human for that. Even an occassional subscription to portfoliovisualizer will be cheaper and better than most advisors.
Good luck too on your journey.

For those reading this thread, comments by @FD1000 and @stayCalm for the name Catch22 are addressing possible circumstance(s), and not related to a poster name at this site.
Good evening.

Stocks up over 1% for me today were small cap defensive and NVDA and AVGO.

It was generally a wasteland.
But AVGO was indeed up, as they had discussionsmwith OpenAI, the generative artificial intelligence startup backed by Microsoft (MSFT), about building a new artificial intelligence server chip.
Their application-specific integrated circuits (ASIC) is a significant growth driver, and it looks to be doing well.

Beware of nonbank fintech apps promising good yields.
What did these people think they were getting from Yotta that they couldn't get from an actual bank?
It turns out that there's a lot to unpack here. I had not taken a look directly at Yotta. Not surprisingly, it's a "gamified" site designed to attract young customers. But surprising (at least to me) is its banking arrangement.
Unless I'm missing something, it pays just a 0.10% base rate. Though because it offers chances of winning money, its effective average rate is closer to 2.5% depending on where/when you read figures. So what one gets is the thrill of the chase in addition to (on average) a halfway decent rate of interest.
Further, it looks like a customer's agreement is directly with Evolve Bank (and perhaps Synapse), not with Yotta. So technically, the customers may in fact be getting their services from an actual bank after all!
Here's the sample customer agreement. It starts:

Synapse Financial Technologies, Inc. (“Synapse”) is providing this Agreement to you on behalf of Bank. ...
This Consumer Interest Checking Account Agreement (this “Agreement”) governs the interest-bearing consumer demand account (the “Account” or “Interest Checking Account”) made available to you by Evolve Bank & Trust (“Bank”), [member FDIC] in partnership with Synapse, as a technology service provider of Bank. ... Access ... is available only through ... Yotta.

As to watching out for nonbank fintech apps promising good yields - Yotta's promised yield is okay but not great. In contrast, Raisin (formerly SaveBetter) appears to be a well established fintech though which one can get better rates from specific banks than one would get by going directly to those banks. Much as one can sometimes get better CD rates from a bank by going through a broker than going directly to the bank.
I agree that caution is warranted, as it is for any financial investment. But there doesn't seem to be any substantial additional risk in using Raisin rather than going directly to the banks it works with. While I haven't used it, it looks like a good source of no-penalty CDs.
Raisin review - Business Insider
Top savings rates (with several Raisin arrangements) - Deposit Accounts

Stocks up over 1% for me today were small cap defensive and NVDA and AVGO.

Final SECURE 2.0 version has been released (260 pages). X/Twitter Jeff Levine
https://public-inspection.federalregister.gov/2024-14542.pdf
Edit/Add, 7/19/24. A longer thread is X/Twitter Jeff Levine2. It focuses on the unexpected vs the vague original SECURE 2.0 (re Roth 401k/403b, beneficiary classes, aggregation rule for partially annuitized IRAs, etc).
One clarification of the 10-Yr Rule for Inherited IRA RMDs is that:
(i) If the RMDs hadn't started, then the beneficiaries empty the IRA within 10 years in any way,
(ii) If the RMDs had started, then beneficiaries must continue RMDs at least the same rate for 9 years, and empty the remainder in the 10th year. There have been waivers for these RMDs for 2021-24, and those years will be counted in the 10 years, but resume RMDs as required in 2025 and empty the remainder in the 10th year.
Edit/Add. The above applies for designated-noneligible beneficiaries, the most common type. But the picture becomes very complicated if all types of beneficiaries are considered.
https://pbs.twimg.com/media/GSzVXu9XgAApoW0?format=jpg&name=900x900

• Largest Catholic mutual fund family in the U.S.


• Diverse group of six funds that enable investors to align financial goals with moral beliefs


• Value investors utilizing proprietary criteria to screen out companies that promote or support activities contrary to the core moral teachings of the Catholic Church


• Place equal emphasis on investment performance and moral criteria in selecting securities


• Serve institutional and individual investors


• Advised by Schwartz Investment Counsel, Inc., a registered investment adviser established in 1980


• Professional portfolio managers and analysts average over 20 years of investment experience


• 100% no-load mutual fund family

I believe RCMFX is actually secular, but same advisor.

stayCalm

That said Fidelity and Vanguard imo are still better imo because one is not forced to manually enter a 2nd MMF trade for every single buy/sell.

Most should don't trade, and most shouldn't own MM.
This is such a small thing, no need to worry about, even if you didn't do the second buy, the yearly difference is meaningless.
You still need to look at the TOTALs.
Vanguard? no thank you, bad servicess.
Fidelity? sure. But, as I said, waving commissions is probably about $2K for me. The ability to invest 99% on day one when I switch funds at Schwab can generate another $K
These are all peanuts.

Regards your Catch 22 comment

I made a generic comment not related to you. All I can tell you is that I met probably at least with 30-40 financial advisors, and I wasn't impressed. Most are just salespeople who repeat what is fed to them.
Most are not real fiduciaries, even if their title says so. A good one should assess your goals in a couple of hours, set a plan for years to come, and only make changes at pivotal points.
They also should put you in up to 5-7 funds, at least half indexes, it's not a brain surgery.
That means charging you maybe $1000-1500 first time and nothing for years, hardly any of them will do it. Fiduciaries should look at their clients interests, not charge them every year, and never by the size of their portfolios.
Good luck.

David profiled the fund in January: Standpoint Multi-Asset Fund (BLNDX / REMIX).

Nonbank fintech apps Yotta and Juno provided customers false or misleading assurances that their money was safe with FDIC insurance
An old joke, misattributed to Winston Churchill comes to mind (I'll connect the dots shortly):

A man asks a woman if she would be willing to sleep with him if he pays her an exorbitant sum. She replies affirmatively. He then names a paltry amount and asks if she would still be willing to sleep with him for the revised fee. The woman is greatly offended and replies as follows:

She: What kind of woman do you think I am?
He: We’ve already established that. Now we’re just haggling over the price.

Money that you hand to institutions that sweep it into banks, regardless of whether they do that themselves or use a third party like Synapse, is not FDIC insured until it reaches the bank. While third parties have additional potential problems, the fact is that cash at Yotta or at a brokerage is not FDIC insured 100% of the time.
How big an insurance gap is that? Doesn't it depend on the infrastructure used (i.e. third party)? Now we're just haggling over size. Regardless of how big an insurance gap there is (hours, weeks, whatever), money invested via non-banks (i.e. FDIC insured sweep deposits, or more generally "brokered deposits") is not fully FDIC-insured; not always. People want zero risk. That's not what they're getting with any sweep account.
E*Trade, with its Extended Sweep Deposit Account (ESDA) program has been more forthcoming than most with its disclosure:

Until my funds are received in appropriate form and processed by the Program Banks, I understand that my funds may not be FDIC insured. For example, after my excess funds are swept out of my brokerage account carried at Securities, my funds may be held at an intermediary bank intraday, overnight, or over the weekend to the next bank business day or longer before being actually received by the Program Banks.

Initial reports suggested that the problem was not that the cash was gone, but that it was "misplaced", i.e. the institutions couldn't sort out which investors owned how much cash. Or even which banks had the cash.

Synapse and Evolve [Bank] disagree on how much of Yotta’s funds are held at Evolve, and how much are held at other banks that Synapse worked with.

https://www.cnbc.com/2024/06/01/synapse-bankruptcy-yotta-accounts-locked.html
I haven't seen mentioned (perhaps I've missed this) that client-facing institutions (whether Yotta or Schwab or whoever) are supposed to keep customers (not banks) informed about where their money is. This is so that customers can keep track of how much they have deposited at any given bank to make sure they don't exceed an FDIC insurance limit.
If the customers were kept informed about their money, then ISTM that reconstructing Synapse's ledgers (which reputedly mismatch those of Evolve) should be straightforward. If the customers were not kept informed, then this would seem to be a prima facie case against Synapse. Not that that helps customers since Synapse is in bankruptcy and uninsured.

OK, I'm waiting to buy, just need a couple of months to see the risk/reward and volatility.

When is it opening and where is it going to be available- if you happen to know.

@FD1000 — Rear view mirror investing is such a great strategy! I wonder why nobody has thought of that before. BTW, I could cherry-pick a number of 10-year periods in which small caps have outperformed the Nasdaq or S&P.

First of all….sorry @hank…..I oftentimes get you and @Crash mixed up in my brain for some reason reason. It was Crash’s post that he since deleted. So sorry!!! @Crash, your post DID have some good investing stuff in it, you’re right.
Second of all, I think many of us can be disappointed that the parties we have so long known no longer exist, as they have been taken over by individuals or families and dominated (Clinton’s and Obamas of Democratic Party, and Bush’s and now Trump’s of Republican Party). Most of us vote for the party that upholds the core handful of things that we believe in, with the other stuff that we DONT believe in being not enough to make us vote for “the other guy” (and hopefully, “girl” someday soon!). Last piece of politicking, I promise :)
I don’t know how de-globalization, stopping the mass border crossings (a supply of cheap, “pay under the table,” labor) and “making things with that beautiful ‘Made in America’ stamp” aren’t inflationary. Combined with pressure put on the Fed to lower interest rates, where will that leave our economy?
I watch way too much CNBC (it’s usually on as background noise), but Cramer was saying how the Russell 2K can’t handle billions and trillions rotating out of tech/growth because the market cap of the entire index is a mere percentage of a single Mag 7 stock. So they cannot be market leaders by themselves. LC value could be….maybe betting on the next trillion dollar market cap stock? LLY, BRK, JPM are close (above $500 billion).
@BaluBalu, what do you mean “Energy Services” stocks? SLB and HAL (sorry for the ignorance), or pipelines/drilling stocks? Good point that increased supply will mean lower prices (good for consumer, arguably, but less good for energy stocks). Maybe energy transportation stocks, as the US would likely be exporting more energy (especially LNG). I have held in the past OKE (but sold about $20 lower price! *face palm*), ENB, WMB, KMI. Pipeline companies trade more correlated to oil than they probably should. But these are NOT K-1 issuing companies.
I think defense stocks would do ok, even with the ending of war, as munition stocks would be replenished from the drawdowns from supplying Ukraine, and continued high military spending; maybe an increase in supplying Israel with military “stuff.”
Utilities have been a mixed bag the last week or so, as the winners of the AI-linked energy supply, such as VST or CEG (and NEE, but that’s more green energy) have gone down as much or more than big tech. And I believe these are some of the more nuclear utility companies; you would think the new administration would be ok with nuclear power (maybe it’s “down with everything that’s considered alternative energy”).
As far as fixed income, I’m not playing a drop in rates yet (as the market moves interest rates more than the Fed does anyways), other than potentially getting out of money markets. I continue to use preferreds (several that are floating rate, such as mREIT preferreds) and baby bonds, CLO ETFs (JAAA, JBBB, CLOZ…..thanks to multiple posters here for teaching me about them), and the low volatility mutual funds that @junkster and @FD1000 and others like (RSIVX, RCRFX/RCRIX, and a few others) that either don’t move or go up a penny every 5-10 days or so. I have been burned by income CEFs too many times to count; their yield is great, and if they traded like their NAV, then they would be amazing investments, but alas, their prices swing wildly. If I want to lose money, I would be better off swing trading the 3x tech ETPs hahaha. So I’m staying mostly away from bond CEFs and core/core-plus/multisector bond OEFs too.
For my wife’s 401(a) she DCAs into once a month, her two biggest holdings are DODGX and HACAX (Harbor’s LCG). They’re about an equal allocation, and they take turns going up (or down) more than the other. I got her out of her small cap value holding there about 2 weeks before the meteoric rise over the last 7-10 days (“I’m an excellent market timer”), and I also have a workplace retirement account from my current employer that I cant add to, and is limited to OEFs only. In that account I am WAY overweight LC growth and tech (I am 47, though so I can be, hopefully?) and only hold a tracking amount of @stillers favorite AUERX as my only SC holding. I WILL talk up a fund that MFO has talked about in the past: FAMEX, a MC blend/value fund that is a long term winner, and is the number 2 holding in that account (a distant 2nd to PRWCX; can’t believe my good fortune that I got into that fund before it closed!).
Apologies for the last paragraph: it went off topic for this thread.
I will continue to favor big tech for longer term returns, and the high quality of the companies. Most even pay a dividend now (even if a pittance). Maybe an equal weight in both LC growth and LC value would be a good way to play the next several months, rather than holding the S&P 500 index (which is basically LCG)? Or a quality fund, like @davidrmoran and several others like (including me; I own GQEPX and some accounts I manage have QLTY).
Apologies for the length of my post….sheesh. And apologies for the kerfluffle from my earlier post (AND FOR MISTAKEN IDENTITY!)!!