https://www.sec.gov/Archives/edgar/data/1548609/000089418923002795/baf-497e.htm
497 1 baf-497e.htm SUPPLEMENTARY MATERIALS
BROWN ADVISORY FUNDS
Brown Advisory Total Return Fund
(the “Fund”)
Institutional Shares (BAFTX)
Investor Shares (BIATX
Advisor Shares (Not available for sale)
Supplement dated April 24, 2023
to the Prospectus, the Summary Prospectus and the Statement of Additional Information
dated October 31, 2022
1. Proposed Reorganization of the Fund
The Board of Trustees of Brown Advisory Funds (the “Trust”) has recently approved an Agreement and Plan of Reorganization (the “Plan”) relating to the Fund pursuant to which the Fund would be reorganized with and into the Brown Advisory Sustainable Bond Fund (the “Acquiring Fund”), which is another investment series of the Trust. The Plan sets forth the terms and conditions by which the Fund would transfer all of its assets to the Acquiring Fund in exchange for shares of the Acquiring Fund and would then subsequently distribute those Acquiring Fund shares to the Fund’s shareholders in complete liquidation of the Fund (the “Reorganization”).
Shareholders of the Fund will receive an Information Statement/Prospectus containing information about the Acquiring Fund and about the terms and conditions of the Reorganization. In accordance with applicable regulatory provisions, shareholders of the Fund are not required to vote with respect to the Reorganization.
The Reorganization is scheduled to be completed on or about June 23, 2023, or on such other date as the officers of the Trust may determine (the “Closing Date”). As of the close of business on the Closing Date, shareholders of the Fund will receive shares of the Acquiring Fund having an aggregate net asset value equal to the aggregate net asset value of the shareholders’ shares of the Fund. Shareholders of the Fund may continue to redeem their Fund shares, or exchange their shares for shares of any of the other Brown Advisory Funds offered by the Trust until the Closing Date.
Effective as of the close of business on May 26, 2023, in anticipation of the Reorganization, shares of the Fund will no longer be sold to new investors. Existing shareholders of the Fund may continue to purchase Fund shares after this date and will continue to be eligible to exchange their shares of the Fund for other Brown Advisory Funds until on or about the Closing Date.
No sales load or other transactional fees will be imposed in connection with the Reorganization. The expenses of the Reorganization will be borne entirely by Brown Advisory LLC, the investment adviser to the Funds.
It is anticipated that the Reorganization will qualify as a tax-free transaction for Federal income tax purposes, and, as a result, it is anticipated that shareholders of the Fund will not recognize any gain or loss in connection with the carrying out of the Reorganization.
In determining to vote in favor the Reorganization, the Board of Trustees of the Trust carefully considered the terms and conditions of the Reorganization and concluded that the proposed transaction was in the best interest of each of the Funds and their shareholders and that it would not result in a dilution of the shareholders of either Fund.
If you have any questions, please call the Fund at 1-800-540-6807 (toll free) or 414-203-9064
Investors should retain this supplement for future reference.

Hi @Old_Joe et al I did a quick check and ASML was about $340/share at the end of October, 2022........same time frame that bonds began an upward move in pricing. A sell now is not a bad thing, eh? But, IMHO; remains at this point in time as a special company.
--- Is ASML the only EUV company?
ASML is the only company in the world that owns the technology and makes the machinery to make physical chips out of silicon wafers. Chipmakers like TSMC, NVIDIA and Intel won't be able to make the chips they do without ASML's EUV technology. Jan 23, 2023
--- Is there any alternative to ASML?
ASML competitors include MKS Instruments, Lam Research, Ultratech, Cadence Design Systems and ASM International. ASML ranks 1st in Diversity Score on Comparably vs its competitors.
--- What is the competitive advantage of ASML?
ASML has a competitive advantage. It makes advanced lithography equipment for etching tiny circuits onto semiconductors. It's the sole supplier of the next-generation Extreme Ultraviolet (EUV) chip technology to the semiconductor industry.Mar 30, 2023
--- Why does ASML have no competitors?
The reason why competition and growth opportunities go hand in hand is because ASML is the owner of its own future. ASML faces competition in the industry however its technology is far more advanced than its competitors due to its EUV lithography technology. Jan 24, 2023
--- Who are ASML top 5 customers?
Image result
Intel (US), Samsung Electronics (South Korea) and TSMC (Taiwan) are the world's largest semiconductor companies and are ASML's biggest customers. Intel and Samsung are integrated device manufacturers (IDMs), which design and manufacture their own chips.
--- DRAM: Faster CPU's need faster DRAM for the large data functions.
The 10 Largest DRAM Manufacturers in the World
Samsung – USD 241.60 Billion.
SK Hynix – USD 38.73 Billion. ...
Micron Technology – USD 27.15 Billion. ...
Kingston Technology – USD 12.8 Billion. ...
Infineon Technologies – USD 9.6 Billion. ...
Winbond – USD 3.5 Billion. ...
Powerchip – USD 2.78 Billion. ...
Nanya Technology – USD 2.42 Billion. ...
--- Can't leave out of the list: Nvidia:
What does Nvidia actually manufacture?
Nvidia designs and sells GPUs for gaming, cryptocurrency mining, and professional applications, as well as chip systems for use in vehicles, robotics, and other tools.
OTOH: semiconductor etf's list SMH etf, Van Eck has very nice long term results, as with FSELX, an early offering from Fido's select funds front running sector investing from the mid-80's,
Quantum, 2019 discussion NOTE: The Nature Magazine link is no longer available without subscription. It was a very insightful write.
I went to school in the early 80's learning about 1's and 0's and hexadecimal numbers and basic programming to 'boot' an early Computer Automation NAKED MINI/ALPHA 16 computer that weighted a bunch (75 lbs, with power supply), with a total memory of 32K, if both 16k boards were installed. I never got the 'feeling' for programming; not unlike art, which I enjoy, but I'm not a very good painting artist. A coworker got the 'feeling' programming and moved forward to work for Ross Perot's EDS electronics/programming division. I preferred the hands on of point A to point E of a computer driving electro-mechanical devices; and having to discover what section failed, and why.
Lastly, for the good and bad of tech.; I still 'heart' this space in investing.
Remain curious,
Catch

VG advisor is their glorified VG PAS ROBO-advisor. Apparently, a call center person calls about the allocation recommendations that the computer spits out.
That's a cheap shot.
(I'm not sure if the pun is intended or not; funny what the subconscious generates.)
PAS is a hybrid service (0.30%) that provides unlimited handholding to go along with their Digital Advisor (0.20% standalone) allocation recommendations.
Think VG want their clients to move up to the next level of advisory at higher fees.
Here's Vanguard's table of advisory services. All are 0.30% or less. Even at the $5M+ level.
https://investor.vanguard.com/advice/compare-investment-advice

50.2% Alts - including 2 stocks (Neutral = 50%)
20% Fixed Income (Neutral = 22%)
23.5% Equity Gwth + Real Assets (Neutral = 22%)
6.3% Various Hedges (Neutral = 6%)
Feels like treading water.

Portfolio is at 57 stocks. 34 bonds 6 cash 3 other.
Just added a tiny bit to SCHP. TIPs and BHB. (BHB recent report: EPS beat, but revenue missed. I'm still going to hang onto this one. It will be a long-term hold, unless the bottom falls out and the planet vaporizes by nuclear attack or else the sun becomes a supernova prematurely.)

I'm not experienced with CDs so please correct me if I am wrong -
The % rates are yearly so you've got to divide by 4. And I assume that the original CD was $100.
The coupon tells you what you get back. The original owner would get back 4.5%/4 or $101.125 at maturity.
The new owner pays $99.96 and gets back the same as the original owner - $101.125.
If you count the term as three months, the new rate is (101.125-99.96)*4/99.96*100 = 4.66%.
If you count the term as one month, the new rate is (101.125-99.96)*12/99.96*100 = 15.67%, but you are only getting one month of interest.

This is NOT a recommendation. I post it as simply an interesting look at the troubled company. Seeking Alpha doesn’t normally load for me. No idea why it worked this time. I do not own Schwab or invest with them. It is highly unlikely I’d ever buy it. According to Google, the stock is down 35% YTD, but just 25% over one year. The comment section following the article is somewhat interesting.
Seeking Alpha

Getting 5% is pretty good. When I take into account of inflation (6%), I am behind by 1%. Right now I am adding to intermediate term bonds before the FED will pause after May ‘s rate hike. It is counterintuitive, but I think the longer duration bonds move independent from the short term bonds. If US enter a recession later this year or 2024, bonds will do better than stocks.
China’s visit to France is embarrassing to himself and to the world. They are just to justify if and when they invade Taiwan. That is the reason Warren Buffet exited his entire position of TSM quickly.

Thanks @sven. The 5.05 JP Morgan is callable. The others are not. I don't mind the size of the bank if I can get 4.95 by the end of May, and it's FDIC insured. Doesn't seem real somehow.
I'll admit that I've been getting my daily dose of schadenfreude following the news about China's ambassador to France.

Your CD is fine with the settlement date. I stay with large banks and make sure they are not callable. VG would state that clearly. JP Morgan always offer callable CDs and I avoid them. Hard to find 2 yr + CDs that pay over 5%.
Like you I am buying T bill in our taxable account. The sweet spot is 3 months.
By the way, debt ceiling voting is on Wednesday and McCarthy does not have enough votes to pass.

@Sven, thanks for the info.
At my Vanguard IRA account I was able to pick up a 9 month CD that pays 5.05. Shorter terms are paying 4.95. I "purchased" them on Sunday, but they don't settle til 4-28. So I presume I am looking at the full term.
The taxable brokerage is a little harder to sort through. I'ld buy T-Bills there if I wasn't concerned about the debt ceiling rodeo.

The maturity date, 5/15/23 indicates it is a 3 months CD when it was issued on 2/13/23. As of today, 4/24/23, it is approaching the maturity date.
No you are looking at the secondary market prices and you will not get the stated rate.
Best is to look at new issues at your brokerage and pay the par value and collect the full interest at maturity. I am seeing 12 months CDs at 5.0% from Schwab and Goldman Sach from Fidelity brokerage.

I'm looking at an FDIC insured brokered CD issued by TIAA FSB (FLORIDA) that was originally issued 02/15/2023 and matures on 05/15/2023.
Yield to maturity is shown at 5.225%. The coupon is shown as 4.5%. The price is shown as $99.96.
If I deposit 1000.00 into this, am I really going to get back $1052.25 in just 21 days?
This seems to good to be true. What am I missing?

@yogibearbull,
Dan Ivascyn, Rick Rieder, Rajiv Jain, Daniel O'Keefe, Aswath Damodaran,
Liz Ann Sonders, and Lawrence Summers (among others) are scheduled
to participate in the 2023 Morningstar Investment Conference (MIC).
MIC Agenda
Edit/Add:
Joel Dickson from Vanguard (Global Head of Advice Methodology)
and Philip Green from BlackRock (Head of Global Tactical Asset Allocation Team)
will both participate in "The 60/40 Portfolio..." session on April 26.

So, M* is having its much touted annual MIC 2023 conference from April 25-27, 2023 in the McCormick Place, Chicago. And they couldn't get a Rep from Vanguard (and from Blackrock)? This is just a chit-chat between 2 M* staffers.
MFO representatives also attend these MICs and @David_Snowball has given reports on the past. What is the MFO team at MIC 2023?

Morningstar’s specialist discusses the firm’s iShares ETFs, the company’s strengths,
and what investors need to know about the world’s largest asset manager today.
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Morningstar’s Vanguard specialist talks about the firm’s funds and ETFs,
costs, and new initiatives that investors should know about.
Video

The Week in Charts (04/22/23)
A tour of the markets covering the most important charts & themes, including Treasury bill problems,
the housing shortage, rising recession risks, public pessimism, and more.
Video
Blog

Difference between short and long-term thinking. Banks CEOs like most CEOs of publicly traded companies often only think from quarter to quarter. To accept zero yields in 2020 and 2021 as Buffett did would be unacceptable to such CEOs trying to hit quarterly earnings estimates in 2020 and 2021 and collect their sizable bonuses for hitting those quarterly numbers. Ultimately, such short-term thinking is bad for everyone but the CEOs and the analysts setting the earnings targets. Investors suffer as Buffett rightly pointed out. But society suffers as well. Banks go bust, we bail them out, people lose their jobs, etc.
Vanguard’s John Bogle called this the “agency society” in which the agents of investors, i.e., executives are the only ones who benefit. This problem could be alleviated if CEO bonuses and other compensation were shifted from short- term ones to long-term ones based on, say, a company’s three-year or five-year profitability and if analysts and Wall Street in general stopped being so short-term oriented. Raising the taxes on short-term capital gains from 20% to 30% or even 40% and lowering the taxes on long-term gains for stocks held 5 years to 15% or even 10% might “inspire” or incentivize Wall Street analysts, traders and money managers to think differently.
Importantly, most of Buffett’s wealth comes from his long-term ownership of Berkshire stock. His salary is minimal and I don’t think he receives a quarterly bonus.

”In a recent CNBC interview, Berkshire Hathaway (BRK.A) CEO Warren Buffett criticized banks for investing in mortgage securities at historically low yields, calling them a ‘very dumb holding for banks.’The problem for mortgage securities holders is that effective maturities lengthen when interest rates rise, the opposite of what the banks want. It leaves banks with relatively low yielding portfolios for potentially long periods. BofA's bond holdings yield about 2.6%, which could weigh on its returns, particularly if it has to pay more for deposits. The portfolio has an estimated average life of eight years. Unlike the banks, Berkshire chose to invest its cash of over $100 billion largely in short-term U.S. Treasury bills. It accepted rates near zero in 2020 and 2021 but is now getting 5% on its holdings. If Bank of America had taken more of a Berkshire-type approach, it now could be earning twice the current rate. Berkshire is Bank of America's largest investor, with a roughly 13% stake—some one billion shares. It's notable that Buffett has decided against putting new money into Bank of America this year even after the stock's weakness.”
Excerpted from Barron’s April 24, 2023 (Print)
Article: “Bank of America’s $99 Billion Bond Problem” - Andrew Bary