Latin American Fund QUARTERLY LETTER | FIRST QUARTER 2020

The Latin American Fund aims to achieve capital growth by investing in a concentrated portfolio of high-quality Latin American growth companies. The Fund seeks high absolute returns over the long term and minimises the level of long-term risk by choosing well- capitalised, high-quality investments at reasonable valuations.

INTRODUCTION

The Brown Advisory Latin American Fund returned -46.1% (net of fees, in US dollars) in the first quarter as a result of the COVID-19 crisis which has affected all global stock markets. The sell-off in Latin America was broad and correlated, but we have found opportunities to increase weights in some of our highest quality core ideas and to RUPERT BRANDT, CFA PETER CAWSTON initiate some new positions where price has previously been a barrier. Portfolio Manager Portfolio Manager

COVID-19 infection rates are currently relatively low in Latin America. Some of this is could be because the region’s new infection growth rate curve appears to be a little behind the US, but we hope it is more related to the fact that many of these countries (or states within these countries) went into lockdowns earlier than many other countries such as the UK (relative to the number of cases at the time that lockdown started). Latin America is mid-way through its summer which might also be generally helping to reduce infection rates. Whilst the poor state of Latin American public healthcare systems will be a negative, the region’s younger population will be an advantage.

Our Fund invests in high quality domestic growth stocks. COVID-19 clearly affects the domestic economy so we expect to see 2020 earnings come in below prior expectations. However, our holdings have strong balance sheets, profitable and cash generative business models, and deep economic moats in underpenetrated growth industries. Our average non-financial holding has only 1x net debt to EBITDA (non-banks)1 which will be a great help in this environment. Many of them will be able to hold net income flat in 2020 or grow, and as a group we expect them to emerge stronger than their competitors and thrive in future years.

We have 92% of our NAV invested in what we consider to be the strongest economies in Latin America which include Brazil, Peru, Chile and Colombia. All of these economies are likely to experience a sharp contraction in their 1H20 GDP. However, we believe that these economies were embarking on a new economic upturn prior to COVID-19. Their fundamentals had been strengthened considerably over the last five years and they will be in a good position to resume growth once lockdowns are lifted. These economies were amongst the first to recover after the global financial crisis in 2009 and we expect the same thing will happen again. Absent further shocks we expect a strong end to 2020 from all of them – particularly Brazil and Peru where we have 80.6% of our NAV invested – and acceleration in 2021.

We have arguably our highest quality portfolio ever and we strongly believe that current valuations are a gift. Our portfolio is trading on forecast PEs of 10.9x 2020 earnings and 8.9x 20212 – multiples last seen at the bottom of the credit crunch. Currencies are even cheaper than they were then on an inflation-adjusted basis. In 2009, the MSCI Emerging Markets Latin America Index returned 103.8% and our strategy returned 142.1%, and we think today might be a similar opportunity on a 1-3 year view.

We have both added to our personal holdings in the Fund during the sell-off.

1Source: Factset, Bloomberg and Broker Estimates. Data as of 31st March 2020. Please see statements at the end of this letter for additional information and a complete list of terms and definitions. 2Source: Factset, Bloomberg and Broker Estimates. Data as of 31st March 2020. P/E ratio is based on the most recent stock price available (03/31/2020). P/E ratios are based on estimated 2020 and 2021 earnings. P/E ratios not provided are due to a number not representing what the portfolio managers consider a suitable valuation based on the calculation or the position has been sold. The total 2020 PE is a weighted harmonic average for all holdings with apositive PE ratio. Please see statements at the end of this letter for additional information and a complete list of terms and definitions.

BROWN ADVISORY LATIN AMERICAN QUARTERLY LETTER FOR INSTITUTIONAL INVESTORS ONLY 1 FUND WEIGHTS

Country Breakdown (31.03.20) COUNTRY % WEIGHT QTD % CHANGE Brazil 63.5 -6.9 Peru 17. 1 +4.2 Colombia 6.0 -2.7 Chile 5.4 +2.0 Argentina 4.1 +0.6 Cash 3.9 +2.8

Source: Factset®. Figures may not add to 100% due to rounding. Geographic breakdown is by country of risk and includes cash and cash equivalents. Data as of 31st March 2020.

PERFORMANCE

The global sell off in 1Q20 resembled the 4Q08 sell off. It was very fast and brought all stock markets down sharply. Latin America performed as a risk asset and saw sharp declines in both stock prices and currencies. This resulted in a -46.1% return for the Fund over the period. Correlations were tight with Peruvian defensives the only relatively safe part of our portfolio.

Currency detracted 12% over the quarter and stocks detracted 35%. Our largest detractors in absolute terms were Banco Bradesco, Itau, Ambev, Lojas Americanas and LPS. Our largest positive contributors were new holdings, AFYA, IFS and Totvs. Acquired in March, all three added to our performance by the end of the quarter3.

Our performance was very similar to that of the MSCI Emerging Markets Latin America Index in the quarter. This does not surprise us given our domestic growth and midcap bias, the threat COVID-19 represents to domestic economies in the short term, and the indiscriminate nature of the sell-off. We expect the market to be more discriminating as economies recover and think our high- quality domestic growth stocks could outperform as they did in 2009.

PERFORMANCE CONTRIBUTION

Largest Contributors Q1 20203

STOCK NAME COUNTRY CONTRIBUTION TO RETURN (%) Afya Ltd. Brazil +0.1 TOTVS SA Brazil +0.1 Intercorp Financial Services Inc. Peru 0.0 Loma Negra Compañía Industrial Argentina SA Argentina -0.1 Inversiones La Construccion SA Chile -0.2

Largest Detractors Q1 20203

STOCK NAME COUNTRY CONTRIBUTION TO RETURN (%) Banco Bradesco SA Brazil -3.6 Itaú Unibanco Holding SA Brazil -3.3 Ambev SA Sponsored ADR Brazil -3.0 Lojas Americanas S.A. Brazil -2.8

Lopes Brasil-Consultoria de Imoveis SA Brazil -2.7

3 Source: Factset®. Figures are gross of fees and taxes. Data as of 31st March 2020. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. Security returns listed represent the period when the security was held during the quarter. Contribution to return is calculated by multiplying a security’s beginning weight in the portfolio by the security’s return on a daily basis, and geometrically linking the return for the reporting period. Top and bottom contributors include cash and cash equivalents.

BROWN ADVISORY LATIN AMERICAN QUARTERLY LETTER FOR INSTITUTIONAL INVESTORS ONLY 2 FX Contribution to Return Q1 2020 TOTAL -11.6 Argentinian peso -0.2 Brazilian real -10.3 Chilean peso -0.2 Colombian peso -1.1 Mexican Peso 0.0 Peruvian sol +0.1 Cash -0.1

Source: Factset®. Figures are gross of fees and taxes. Data as of 31st March 2020 and includes cash and cash equivalents. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable.

BRAZIL

The Brazilian economy entered the COVID-19 crisis primed to accelerate. Households and companies have deleveraged over the last five years and private sector banks are in great shape. Inflation has fallen to 3-4% and seems well anchored. Interest rates are at an all-time low of 3.75% and have entered their first multiyear period in single digits. Over 600,000 net new jobs were created in 2019 and salaries are rising a little ahead of inflation. The government passed a good pension reform last year and has started a major privatisation programme. The Brazilian real is cheap and the external sector is in good shape. Brazilian companies are adopting technology quickly and creating significant economic opportunity in the process. Pent up demand is significant after several years of weak recovery from a huge recession.

We believe all of these factors will still be in place once the COVID-19 cloud lifts and we expect the Brazilian economy will be one of the first major economies to pick up, as it was in 2009.

Brazil’s COVID-19 new infection growth seems to be approximately two weeks behind the US. We hope to see new daily infections peak in April. The most recent data is starting to look encouraging in this regard but it’s still early days. State governors have locked down approximately 60% of the population. Rio state entered lockdown before the UK. Approximately 9% of Brazil’s population is over 65 compared to 23% in Italy and 18% in the UK4 which should be a positive but the public health system will struggle. The government has announced fiscal measures to help businesses, which they have room to do given the pension reform passed last year. Brazil’s state development bank, the BNDES, should be a big help for more vulnerable sectors, and the banks generally are in great shape and are being very proactive which is likely to help the economy.

President Bolsonaro’s response to COVID-19 has been inadequate and he seems isolated politically and in society. This may reduce his government’s ability to enact further reforms, but we will probably still see a tax simplification in 2021 and ongoing sector-level reforms which will help the positive evolution of business conditions in Brazil. We also expect privatisations and concession auctions to continue which will be good for sentiment and investment. Crucially the key pension reform has already passed and materially improves Brazil’s long-term fiscal, debt, inflation and cost of capital outlook.

As discussed above, this sell-off was tightly correlated and the market did not discriminate based on quality or fundamentals. We took advantage of these conditions to refresh our portfolio, adding to our highest-conviction positions and adding new ones that previously failed our valuation tests.

One of our new holdings is AFYA, the leading operator of medical schools in Brazil. We have been getting to know this company since its IPO last year and think it is an exceptionally attractive business. There is a clear shortage of doctors in Brazil and a clear

4 Source: The World Bank, Population ages 65 and above (% of total population), World Bank staff estimates based on age/sex distributions of United Nations Population Division’s World Population Prospects: 2019 Revision. Please see the end of this letter for important disclosures.

BROWN ADVISORY LATIN AMERICAN QUARTERLY LETTER FOR INSTITUTIONAL INVESTORS ONLY 3 shortage of medical school places, and the demand for medical degrees is high as doctors are well paid. Approximately 97% of AFYA’s students gain employment immediately after graduating and it typically takes 5 years to payback the cost of their tuition.

Medical students tend to come from high income families so the dropout rate is only 1%. As degrees take 6 years, revenues are very predictable. Growth is also predictable. Prices increase with or above inflation every year. Also, the government awards licenses for new medical schools in small batches every few years, and AFYA was the largest winner in the 2018 round. The new schools are just starting to accept students and will ramp up over the next five years as the cohorts move through the year groups, driving revenue growth and operating leverage. In total, AFYA should be able to triple its current student base organically as its facilities mature5. Finally, AFYA is also able to acquire medical schools at highly accretive prices.

In 2019 AFYA grew revenue by 71%, EBITDA by 87%, and net income by 137%6. We expect rapid growth to continue. We recently spoke to the company and they expect to grow revenue and margins in 2020, despite COVID-19. They are currently teaching remotely via the internet and haven’t reduced fees or seen increased dropout rates. Net margins are 35%7, and the company generates a high ROIC and substantial free cash flow. It also has net cash8, a feature we love, especially in uncertain times.

AFYA’s IPO price was too high for us, but the 1Q20 sell-off provided an opportunity we feared we would never get. We built our position in March at various prices within a range of 13-16x 2021 forecast earnings. AFYA was a 3.4% positon as at April 14th.

One of the positions we added to is Fleury, Brazil’s leading diagnostic testing and imaging company. We added at 14x 2021 forecast earnings, a price that affords a nearly 4% dividend yield which should grow with earnings. Fleury has expanded its footprint materially in recent years, and as new clinics mature they boost same store sales, revenue growth and productivity. New tests in emerging fields such as genomics and new medical services at quiet times of day are also driving growth over a relatively fixed cost base. We believe Fleury has decades of growth ahead of it as Brazil starts to age. Fleury was a 3.6% position as at April 14th.

We generally don’t churn the Fund fast but we sold Totvs in January on valuation grounds and bought it back in March for approximately half the price. Totvs has an approximately 50%9 market share in ERP software in Brazil with an even higher share amongst small and mid-sized companies, which is where the growth is. Totvs has transitioned from a license sale model to a subscription model and 76%9 of revenues are recurring. There is still a lot of room for long-term growth in Totvs’ core product, and in addition the company is expanding into CRM, e-commerce and wants to become a major force in the fintech area. Totvs has a new CEO with a great track record of making and integrating acquisitions, who has already made two attractive acquisitions at Totvs. Totvs is highly profitable and cash generative, and we expect it to have net cash at the end of 202010 despite closing these two acquisitions and dealing with any disruption from COVID-19. We are glad to have the stock back in the Fund at a 2.3% position as at April 14th.

MEXICO

We continue to have concerns about Mexico’s outlook and do not expect to add exposure to this market in the near term. The new president continues to interfere in the economy and still appears hostile to the private sector. This is discouraging investment. Mexico suffered a mild recession last year despite substantial increases in the minimum wage and we worry that the combined impact of COVID-19, lower oil prices and a US recession might set Mexico up for its worst ever decline in real GDP in 2020. It’s very hard to predict how the new president will respond but if he doubles down on populist policy Mexico might ultimately lose its investment grade status. We feel we have seen this before, when Dilma Roussef was president in Brazil, and are happy to watch from the side-lines.

THE ANDEAN BLOC

We describe the Andean economies of Chile, Peru and Colombia as the compounders of Latin America and are happy to have a significant weight here. All three countries are part way through COVID-19 lockdowns. As a result Peru is likely to experience its first recession since 1998 and Colombia only its second in 90 years11, but both economies have underlying strength and we expect them to exit 2020 with a recovering trend. It is at times like this that fiscal discipline pays off: Peru ended 2019 with only 13% net debt/ GDP12, which has allowed it to announce a stimulus package worth 12% of GDP.

5 Source: AFYA 2019 Results Earnings Call Presentation, March 27, 2020. Pg.10, Approved seats & medical students chart. 6 Source: AFYA 2019 Results Earnings Call Presentation, March 27, 2020. Pgs. 11, 12, 13. 7 Source: AFYA 2019 Results Earnings Call Presentation, March 27, 2020. Pgs. 11 & 13. 8 Source: AFYA 2019 Results Earnings Call Presentation, March 27, 2020. Pg. 14. 9 Source: TOTVS Institutional Presetation/ Investor Relations, February 2020. Pg. 3. 10 Source: TOTVS Institutional Presetation/ Investor Relations, February 2020. Pg. 20. 11 Source: Credicorp Capital, Quarterly Andean Macro Report, 3rd April 2020. 12 Source: Credicorp Capital, Andean Macro Weekly Report, 13th April 2020, pg. 8. 4 BROWN ADVISORY LATIN AMERICAN QUARTERLY LETTER FOR INSTITUTIONAL INVESTORS ONLY Chile is slightly more complex and as such we have 5.4% of the NAV invested in Chilean companies. High-frequency data in January and February suggested that the economy was actually quite healthy before COVID-19 hit, but as a result of the riots of 4Q19 the country is likely to embark on a constitutional rewrite. We spent nearly four weeks in Chile in February and March and came away feeling that the outcome will be positive, but the process will be noisy and will last for at least another year. We don’t expect confidence to fully return to the Chilean economy until this process is complete.

The COVID-19 sell-off afforded us the opportunity to reshuffle some holdings in the Andes. Some Chilean stocks got to real bargain- basement levels as a result of back-to-back sell-offs driven by the riots and COVID-19. We increased our weightings in Falabella, a multiformat retailer that operates in six countries and has excellent long-term growth prospects, and Parque Arauco, a mall company with world class assets and management. We also added to Peruvian banks. Peru has a concentrated, highly profitable, well-capitalised, and well-regulated banking sector. We have learned over the years that when you get an opportunity to add exposure at a silly price, you should. We increased our weighting in Credicorp, Peru’s leading bank and a company we have owned continually since 2011. We also bought a position in IFS, a superb and highly profitable bank that we have owned before. These positions were acquired at c.6x 2021 earnings and 6-7% dividend yields. These companies will continue to thrive in years to come.

Funding for these additions came from Colombia, where we sold excellent assets at painful prices. This was not fun, but we have switched from companies that were not executing as well as we had expected into ones where we think management are doing an excellent job but valuation previously capped our position sizes. On balance, we think we have added to both the diversification and the likely earnings growth within the portfolio without sacrificing valuation.

CONCLUSION

The Latin American economies we invest in will, like most other economies, be severely impacted by the COVID-19 lockdowns in 1H20 but we expect them to start to recover rapidly in 2H20 and are optimistic about a further acceleration in 2021. The key point here is that this region was at the start of a new economic upturn when the COVID-19 crisis occurred which is a much healthier stage of the cycle to where a number of the major developed economies were (which were closer to the end of their economic cycles).

We believe many of the companies we invest in will be impacted in 1H20 by the lockdowns but think they will all survive and emerge stronger than their weaker competitors when these economies rebound in 2H20.

The Fund is now valued at similar levels to where it was after the global financial crisis in 2009 at 8.9x 2021 forecast earnings13. Currencies are even cheaper in inflation adjusted terms than they were then and we believe, with strong conviction, that these currencies are likely to appreciate against the US dollar on a medium-term view. The Fund returned 142.1% in 2009 and we hope to see a similar return over the next 1-3 years from current levels.

The Latin American Team Portfolio Managers: Rupert Brandt, CFA & Peter Cawston

13 Source: Factset, Bloomberg and Broker Estimates. Data as of 31st March 2020. P/E ratio is based on the most recent stock price available (03/31/2020). P/E ratios are based on estimated 2021 earnings. P/E ratios not provided are due to a number not representing what the portfolio managers consider a suitable valuation based on the calculation or the position has been sold. Please see statements at the end of this letter for additional information and a complete list of terms and definitions.

BROWN ADVISORY LATIN AMERICAN QUARTERLY LETTER FOR INSTITUTIONAL INVESTORS ONLY 5 Annual Performance Latin American Fund

Inception to Year end 2006 17.90% 2007 19.08% 2008 -55.34% 2009 142.11% 2010 34.43% 2011 -23.44% 2012 35.02% 2013 -7.55% 2014 -7.83% 2015 -35.54% 2016 24.60% 2017 25.68% 2018 -16.76% 2019 8.22% Cumulative performance since inception -12.32%

Source: BBH. The performance shown above includes the performance of the Findlay Park Latin American Fund between 10 October 2006 and 28 March 2018 which merged into the Brown Advisory Latin American Fund on 30 April 2018. Past performance is calculated using the U.S. Dollar class of share and net of fees. The Brown Advisory Latin American Fund was launched under Brown Advisory’s Irish UCITS umbrella on 30 April 2018. Data as at 31st March 2020.

Sector Breakdown

SECTOR FUND WEIGHT % QTD % CHANGE Consumer Discretionary 22.8 -3.2 Consumer Staples 18.6 +2.4 Banks 16.6 -2.1 Financial Exchanges 9.1 +0.6 Private Education 8.2 +0.7 Health Care 5.6 +1.6 Transportation 4.3 +1.7 Shopping Malls 3.8 0.0 Real Estate Brokers 2.6 -1.8 Other Financials 1.6 -2.0 Utilities 1.6 -0.8 Technology-Services & Software 1.0 -0.1 Building Materials & Cement 0.2 +0.2 Cash 3.9 +2.8

Source: Factset®. Data as at 31st March 2020 and includes cash and cash equivalents. Sectors are based on a custom classification as classified by the Brown Advisory Latin American Fund portfolio managers. Numbers may not total 100% due to rounding.

BROWN ADVISORY LATIN AMERICAN QUARTERLY LETTER FOR INSTITUTIONAL INVESTORS ONLY 6 Top 10 Positions Q1 2020 SECURITY COUNTRY FUND WEIGHT (%) InRetail Peru Corp. Peru 6.7 Lojas Americanas* Brazil 6.2 Itau Unibanco Holding S.A. Sponsored ADR Pfd Brazil 6.0 Ambev SA Sponsored ADR Brazil 5.2 Credicorp Ltd. Peru 5.1 Grupo Nutresa S.A. Colombia 4.9 Banco Bradesco S.A. Sponsored ADR Pfd Brazil 4.4 B3 SA - Brasil, Bolsa, Balcao Brazil 4.2 Alicorp SAA Peru 4.2 Bolsas y Mercados Argentinos SA Argentina 3.8

Source: Factset®. Data as at 31st March 2020. Top 10 holdings include cash and cash equivalents. *Lojas Americanas represents a 3.2% holding in Lojas Americanas S.A. and a 3.0% holding in Lojas Americanas SA Pfd. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable.

Largest Purchases Q1 2020

STOCK NAME COUNTRY Afya Ltd. Brazil Ambev SA Sponsored ADR Brazil OdontoPrev S.A. Brazil Azul SA Brazil Loma Negra Compañía Industrial Argentina SA Argentina

Largest Sales Q1 2020

STOCK NAME COUNTRY Banco Bradesco SA Brazil Ambev SA Sponsored ADR Brazil Grupo Nutresa SA Colombia InRetail Peru Corp Peru Itaú Unibanco Holding SA Brazil

Source: Factset®. Data as at 31st March 2020. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable.

BROWN ADVISORY LATIN AMERICAN QUARTERLY LETTER FOR INSTITUTIONAL INVESTORS ONLY 7 Methodology, Terms & Definitions Our portfolio stats are downloaded from Bloomberg and Factset. In the few cases where Bloomberg and Factset do not have data we source forecasts from individual brokers and historic data from company financials. Several of the differences between the unadjusted and adjusted portfolio statistics stem from the fact that over the last two years we have allocated about 5% of our portfolio to high quality cyclical small cap stocks in Brazil. Because they are cyclical these stocks are making losses or very small profits as they exit Brazil’s major 2015-6 recession. We do not believe this performance is representative of their earnings power as the cycle normalises so we strip them out of some of the statistics so that the characteristics of the core portfolio holdings can be seen more clearly. PE Methodology: The total 2020 and 2021 PE is a weighted harmonic average for all holdings with a positive PE ratio. PE ratios are sourced from Factset or Broker Estimates selected by the portfolio managers. ROE Methodolgy: We show Return on Equity excluding acquisition-related intangibles as a measure of the barriers to entry our businesses possess and of their ability to internally fund organic growth. We believe the substantial majority of future growth will be organic. Most of the goodwill at these companies relates to one-off acquisitions that are unlikely to be repeated in the future. We make a number of other more minor adjustments which we can explain on request.

EPS Growth Rate Methodology: Implied EPS Growth Rate for 2020 and 2021, year over year. All financial statistics and ratios are calculated using information from Factset as of the report date unless otherwise noted. FactSet® is a registered trademark of FactSet Research Systems, Inc. Bloomberg is a trademark and service mark of Bloomberg Finance L.P., a Delaware limited partnership, or its subsidiaries. Any other trademarks or service marks are property of their respective owners. An investor cannot invest directly into an index. The MSCI Emerging Markets Latin America Index captures large and mid cap representation across 6 Emerging Markets countries in Latin America. With 112 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Market Capitalization refers to the aggregate value of a company’s publicly traded stock. Statistics are calculated as follows: Weighted Average: the average of each holding’s market cap, weighted by its relative position size in the portfolio (in such a weighting scheme, larger positions have a greater influence on the calculation); Weighted Median: the value at which half the portfolio’s market capitalization weight falls above and half falls below; Maximum and Minimum: the market caps of the largest and smallest companies, respectively, in the portfolio. Net Debt to EBITDA Ratio is a measurement of leverage, calculated as a company’s interest-bearing liabilities minus cash or cash equivalents, divided by its EBITDA. The net debt to EBITDA ratio is a debt ratio that shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant. If a company has more cash than debt, the ratio can be negative FX Return is based on the parent company local currency. Contribution to return is calculated by multiplying a security’s beginning weight in the portfolio by the security’s return on a daily basis, and geometrically linking the return for the reporting period. Local Currency and Local Currency Return refer to the currency in which a security is denominated and its rate of return over a given period of time; e.g. a Colombian equity is denominated locally in Colombian Pesos. Contribution to Return is a security’s impact on the actual rate of return for a pool of investments over a given time period. All of the above ratios for a portfolio are expressed as a weighted average of the relevant ratios of each portfolio holding, EXCEPT for P/E ratios, which are expressed as a weighted harmonic average. Disclosures Past performance is not a guarantee of future performance and you may not get back the amount invested. The views expressed are those of the author and Brown Advisory as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is intended solely for our clients and prospective clients, is for informational purposes only, and is not individually tailored for or directed to any particular client or prospective client. Performance data above relates to the Brown Advisory Latin American Fund (the “Fund”). It includes the performance of the Findlay Park Latin American Fund between 10 October 2006 and 28 March 2018 which merged into the Brown Advisory Latin American Fund on 30 April 2018. Past performance is calculated using the U.S. Dollar class of share, inclusive of any distributions, on a NAV to NAV basis, net of fees. The Brown Advisory Latin American Fund was launched under Brown Advisory’s Irish UCITS umbrella on 30 April 2018. The performance is net of management fees and operating expenses. This communication is intended only for investment professionals and those with professional experience of investing in collective investment schemes. Those without such professional experience should not rely on it. Changes in exchange rates may have an adverse effect on the value price or income of the product. The difference at any one time between the sale and repurchase price of units in the Fund means that the investment should be viewed as medium to long term. This letter is issued by Brown Advisory Ltd, authorised and regulated by the Financial Conduct Authority. This is not an invitation to subscribe and is by way of information only. Cancellation rights do not apply and UK regulatory complaints and compensation arrangements may not apply. This is not intended as investment advice. Investment decisions should not be made on the basis of this letter. You should read the Prospectus of Brown Advisory Funds plc (the “Company”) together with the Supplement relating to the Fund in full to understand the features and risks associated with this Fund. The Company’s Prospectus along with the Fund’s Supplement and Key Investor Information Document(s) are available by calling 020 3301 8130 or visiting the Brown Advisory website. The Fund is a sub-fund of the Company, an umbrella fund with segregated liability between sub-funds. The Fund is authorised in Ireland as a UCITS pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities Regulations, 2011 as may be amended, supplemented or consolidated from time to time) and a recognised collective investment scheme for the purposes of section 264 of the Financial Services and Markets Act 2000. The Company has appointed Brown Advisory (Ireland) Limited as its UCITS management company. The investment manager of the Fund is Brown Advisory LLC. Brown Advisory is the marketing name for Brown Advisory LLC, Brown Investment Advisory & Trust Company, Brown Advisory Securities LLC, Brown Advisory Ltd., Brown Advisory Trust Company of Delaware LLC and Brown Advisory Investment Solutions Group, LLC.

BROWN ADVISORY LATIN AMERICAN QUARTERLY LETTER FOR INSTITUTIONAL INVESTORS ONLY 8