In October 2020, BBH Select Series – Large Cap Fund (“BBH Select” or “the Fund”) declined by -2.28%, which compared to a loss of -2.66% for the S&P 500 Index. Our top performer in the month was Alphabet and our largest detractor was Mastercard. We initiated a position in Starbucks, the world’s largest specialty coffee retailer.

Alphabet, the parent holding company of Google, reported solid Q3 2020 results during the month. Alphabet’s advertising businesses showed broad strength across its markets, indicating a faster-than-anticipated recovery from the COVID-19 economic crisis. Improved operating profitability was aided by management’s careful expense control, but key investments in high-growth areas such as cloud computing were sustained. The company briefly addressed a recently filed Department of Justice lawsuit that claims Alphabet has pursued anti-competitive practices in online search. Google is expected to file an initial response to the complaint in the coming weeks, after which point a multi-year legal process could commence, in our view. While there is likely to be volatility as headlines arise from this case, at this point we do not foresee material changes to Alphabet’s business model or long-term prospects.

Mastercard reported results near the end of the month that were impacted by lower cross-border transactions due to pandemic-related restrictions on travel. Cross-border revenues are among Mastercard’s highest yielding and most profitable transactions because of increased security and fraud services that are typically required. While Mastercard’s underlying business has strengthened during the pandemic given increased demand for electronic payments for small-dollar-value transactions and fast growth in contactless payments, the company’s total revenues will continue to be depressed until cross-border travel begins to normalize.

Starbucks Corp. is the world’s largest roaster and retailer of specialty coffee. We believe the company is well positioned to continue strengthening its leadership in an attractive industry driven by robust unit economics, focus on customer engagement, and the ability to adapt as consumer preferences and purchase behavior evolve. Starbucks recently announced actions to make its leading rewards program more accessible to a broader base of customers. The company is also accelerating its store format evolution to better serve customers seeking convenience with more drive-through, curbside, and pick-up only locations. The long-term implications of these proactive strategic steps have the potential to further increase loyalty and throughput driving value creation for a long period of time.

Select Series-Large Cap Performance as of 10/31/2020 and 9/30/2020.

Select Series-Large Cap Portfolio Characteristics as of 10/31/2020

Holdings are subject to change. Totals may not sum due to rounding.

Price/Earnings (P/E) ratio is a company’s current share price divided by earnings per-share.

Turnover ratio is the rate of trading in a portfolio; higher values imply more frequent trading.

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

Investors in the Fund should be able to withstand short-term fluctuations in the equity markets and fixed income markets in return for potentially higher returns over the long term. The value of portfolios change every day and can be affected by changes in interest rates, general market conditions and other political, social and economic developments.

The Fund is ‘non-diversified’ and may assume large positions in a small number of issuers which can increase the potential for greater price fluctuation.

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

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

Not FDIC Insured                                  No Bank Guarantee                            May Lose Money

IM-08712-2020-11-10                BBH003088        Exp. Date 12/31/2020