Investment Criteria

With over fifty-thousand issuers and dozens of different bond structures, the municipal bond market is arguably the most diverse fixed income sector. It is also highly volatile due to issues related to market segmentation and lower liquidity. This landscape provides a rich environment for value oriented managers such as BBH who seek to generate attractive risk-adjusted returns through active portfolio management while also protecting investors’ capital with sound underwriting. Our independent research serves as the foundation of our investment process.

When constructing our municipal bond portfolios, we apply a disciplined investment selection process that focuses on the following seven issuer attributes:

  • Provides essential services
  • Strong competitive position
  • Financial strength
  • Robust operating model with pricing flexibility
  • Backed by a proven revenue stream
  • Strong coverage and covenant protection
  • On-time financial filings

We also take into consideration management attributes, when applicable:

  • Political willingness to exercise rate autonomy
  • Positive operating performance
  • Sound capital expenditure plans
  • Responsible use of derivatives

The portfolio management team generally expects to target between 75-125 securities in major sub-sectors of the municipal bond market.


Learn more about how to invest in BBH Mutual Funds.  

© 2009 - Brown Brothers Harriman & Co.

Consult your prospectus for more information. To obtain a recent prospectus, please contact the BBH Fund Information Service, Brown Brothers Harriman ("BBH"), 140 Broadway, New York, NY 10005. (800) 575-1265, or email us a literature request ( You should consider the fund's investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund's prospectus, which you should read carefully before investing.

Investments in the BBH's Proprietary Mutual Funds (collectively, "BBH Funds") are neither insured nor guaranteed by the U.S. Government. Securities products are subject to investment risks, including possible loss of the principal invested. Shares of the BBH Funds are not deposits or obligations of, or guaranteed by, Brown Brothers Harriman & Co. ("BBH"), or any other bank or depository institution. Shares of the BBH Funds are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other federal, state or government agency.

BBH provides investment advice and portfolio management to the BBH Funds through a separately identifiable department (the "Investment Adviser"). The Investment Advisor is registered with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940. BBH acts as the Fund Administrator and is located at 140 Broadway, New York, NY 10005. Shares of the Fund are distributed by ALPS Distributors, Inc. and is located at 1290 Broadway, Suite 1100, Denver, CO 80203.

Effective October 5, 2012, BBH Broad Market Fund has been renamed to BBH Limited Duration Fund.

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