BAFZX

About BAFZX

The Brown Advisory Mortgage Securities Fund Institutional Class is an open-end mutual fund specializing in fixed income, with a focus on mortgage-related securities. Its primary goal is to maximize total return while preserving capital, which it seeks to achieve by investing at least 80% of its assets in investment-grade mortgage-backed and asset-backed securities, predominantly those rated BBB- or higher by S&P. The fund primarily targets securities with maturities between 2 and 8 years, emphasizing careful security selection and detailed prepayment analysis to mitigate interest rate and credit risks. Notably, it maintains a concentrated portfolio of high-conviction holdings, opting for independent security analysis over strict replication of benchmark indexes. Sectors key to its operations include residential and commercial mortgage markets, along with selective exposure to U.S. Treasuries and cash equivalents. The fund plays a significant role in the intermediate government bond category, offering institutional investors a vehicle for access to the U.S. mortgage securities market with a relatively modest expense ratio, positioning itself to potentially enhance yield and manage volatility within a fixed income allocation.