The BBH Limited Duration Fund Class I ("the Fund") returned 1.53% in April, and the Bloomberg Barclays U.S. 1-3 Year Treasury Index returned 0.13%. Outperformance was due to April’s rebound of credit in the Fund versus an all-Treasury benchmark.

The Treasury curve was practically unchanged in April. Returns in excess of Treasuries (excess returns) for 3-5-year investment grade (IG) and 0-5-year high yield (HY) corporate bonds were 3.60% and 3.53%, respectively. Total returns were 3.81% and 3.69%, respectively. Total return for floating rate loans was 4.29%. Asset-backed securities and non-agency commercial mortgage-backed securities returned 1.34% and 0.78%, respectively.

IG corporate spreads peaked at 360 basis points1 (bps) in the third week of March, up from 130 bps at the end of February. By the end of March those spreads had tightened to 270 bps, and then to 210 bps at the end of April. HY corporate spreads peaked at 1,090 bps in the third week of March, up from 530 bps at the end of February. By the end of March, HY spreads had tightened to 880 bps, and then to 760 bps at the end of April. The average price of a leveraged loan moved higher in April, to $86.31, versus $83.18 at the end of March. Structured fixed income has yet to receive Fed support as we await the roll out of Term Asset-Backed Securities Loan Facility (TALF). As a result, the sector has not seen the same magnitude of spread tightening experienced in corporate credit. We continue to see attractive valuations for select structured fixed income credits.

The Federal Reserve, and Federal and State governments have announced and implemented programs on an unprecedented scale to support the economy and to maintain market liquidity. While some industrial sectors are being affected differently than others, the general economy will rebound only when regional quarantines are slowly reversed. In the meantime, we continue to invest only in credits structured to endure a wide range of economic scenarios.

1 A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument.

Morningstar Rating for Limited Duration Fund as of 4/30/2020. Class I five stars and Class N four stars.

Limited Duration fund perforamnce as of 4/30/2020 and 3/31/2020 versus the Bloomberg Barclays US 1-3 Treasury Index and the Reference Index. Reference Benchmark: 40% Bloomberg Barclays Short-Term Corporate Index; 40% Bloomberg Barclays US Aggregate ABS Index; and 20% Bloomberg Barclays US Treasury Bills Index.

Limited Duration Fund Composition Tables as of 4/30/2020. Share Class Overview, Credit Qualtiy, Top 10 Credit, Sector Distribuiton and Fund Facts.

This material is not authorized for distribution unless accompanied or preceded by a current Fund prospectus. 

Opinions, forecasts, and discussions about investment strategies represent the author’s views as of the date of this commentary and are subject to change without notice. References to specific securities, asset classes, and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as recommendations.

Purchase and sale information provided should not be considered as a recommendation to purchase or sell a particular security and that there is no assurance, as of the date of publication, that the securities purchased remain in a fund's portfolio or that securities sold have not been repurchased.

RISKS

Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices.

Asset-Backed Securities (“ABS”) are subject to risks due to defaults by the borrowers; failure of the issuer or servicer to perform; the variability in cash flows due to amortization or acceleration features; changes in interest rates which may influence the prepayments of the underlying securities; misrepresentation of asset quality, value or inadequate controls over disbursements and receipts; and the security being structured in ways that give certain investors less credit risk protection than others.

Foreign investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards.

The Fund also invests in derivative instruments, investments whose values depend on the performance of the underlying security, assets, interest rate, index or currency and entail potentially higher volatility and risk of loss compared to traditional stock or bond investments.

For more complete information, visit www.bbhfunds.com for a current Fund prospectus. 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.

Shares of the Fund are distributed by ALPS Distributors, Inc. and is located at 1290 Broadway, Suite 1000, Denver, CO 80203.

Brown Brothers Harriman & Co. ("BBH"), a New York limited partnership, was founded in 1818 and provides investment advice to registered mutual funds through a separately identifiable department (the "SID"). The SID 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.

© 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.

Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The BBH Limited Duration Fund was rated against the following numbers of U.S.-domiciled Ultrashort Bond category funds over the following time periods: 164 funds in the last three years, 127 funds in the last five years, and 56 funds in the last ten years. With respect to these Ultrashort Bond category funds, the overall BBH Limited Duration Fund (Class I & Class N), received a Morningstar Rating of 5 stars and 4 stars, respectively. Class I three-, five- and ten-year periods received ratings of 4 stars, 5 stars and 5 stars, respectively. Class N three-, five- and ten-year periods received ratings of 3 stars, 4 stars and 5 stars, respectively.

Not FDIC Insured                                  No Bank Guarantee                            May Lose Money

IM-07974-2020-05-15                BBH002970        Exp. Date 06/30/2020