News & Updates
Brown Capital Management's International Small Company Fund Investor Class (BCSVX) and Institutional Class (BCSFX) Receives Morningstar Overall Rating of Five Stars
Brown Capital Management (BCM) is pleased to announce that the International Small Company Fund -Investor and Institutional Class1 - has achieved a Morningstar Overall Rating™ of 5 stars in a category of 110 Foreign Small/Mid Growth Funds based on risk adjusted returns as of 9/30/2018.
Launched in September of 2015, the International Small Company Fund seeks to build a long-term growth portfolio of 40 to 65 exceptional international small companies, with the wherewithal to become exceptional large companies. The Fund is team managed by portfolio manager/analyst Duncan J. Evered, Kabir Goyal (CFA), and Maurice L. Haywood (CFA). It invests at least 80% of its total assets in the equity securities of non-U.S. based companies with total operating revenues of $500 million or less at the time of the initial investment (“small companies”).
The International Small Company Fund joins BCM’s Small Company Fund— Investor and Institutional Classes2—which also has a Morningstar Overall Rating™ of 5 stars in a category of 606 Small Growth Funds based on risk adjusted returns as of 9/30/2018, a Morningstar Analyst Rating™ of Gold, and whose management team was selected for Morningstar, Inc.’s U.S. Domestic-Stock Fund Manager of the Year3 for 2015. This award is announced annually, the most current being 2018.
About Brown Capital
Brown Capital Management is an investment management firm (located in Baltimore, Maryland) that strives to provide clients with above average investment returns and high quality client service. BCM is a focused growth manager steeped in independent company research, serious long-term investing, and unwavering reputation for integrity. Brown Capital Management will remain a small/medium sized, highly focused Firm providing equity investment management to its clients. By attracting and maintaining an experienced, highly motivated and stable professional and administrative staff, clients are offered high quality service to meet their investment needs.
The Morningstar Rating noted herein is the mutual fund’s overall Morningstar Rating as of the date of the press release. The overall Morningstar Rating is based on the fund’s risk-adjusted returns and derived from a weighted average of the fund’s three-, five-, and 10-year metrics.
The Morningstar Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts’ current expectations about future events; risks and uncertainties unknown at the time may cause those expectations not to occur or to differ significantly from what was expected.
Morningstar, Inc. does not represent its Morningstar Rating or its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness. The Morningstar Ratings and Analyst Ratings are subject to change and are not to be considered an offer or solicitation by Morningstar to buy or sell the mutual fund(s) noted.
1The Morningstar Rating noted herein is the mutual fund’s overall Morningstar Rating time period as of 9/30/2018. The overall Morningstar Rating is based on the fund’s risk-adjusted returns and derived from a weighted average of the fund’s three-, five-, and 10-year metrics. The Morningstar Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts’ current expectations about future events; risks and uncertainties unknown at the time may cause those expectations not to occur or to differ significantly from what was expected.
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 products 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 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. Brown Capital Management International Small Company Fund were rated against the following numbers of Foreign Small/Mid Growth Funds over the following time periods as of 9/30/2018: 110 of funds in the overall and 3-year rating. With respect to these Foreign Small/Mid Growth Funds, Brown Capital Management International Small Company Fund received a Morningstar Rating™ of five stars for the overall and 3- year rating.
2Brown Capital Management Small Company Fund were rated against the following numbers of U.S.-domiciled Small Growth funds over the following time periods as of 9/30/2018: 606 of funds in the 3-year rating and for the Overall rating, 532 of funds in the last five years, and 404 of funds in the last ten years. With respect to these Small Growth funds, Brown Capital Management Small Company Fund received a Morningstar Rating™ of five stars for the overall and 3- year rating, five stars for 5- year rating, and five stars for ten-year rating periods, respectively.
3Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. To qualify for the award, managers’ funds must have not only posted impressive returns for the year, but the managers also must have a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders’. Nominated funds must be Morningstar Medalists—a fund that has garnered a Morningstar Analyst Rating™ of Gold, Silver, or Bronze. The Fund Manager of the Year award winners are chosen based on Morningstar’s proprietary research and in-depth qualitative evaluation by its fund analysts.
Morningstar Analyst Rating™
The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s conviction in a fund’s prospects for outperformance. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to global.morningstar.com/managerdisclosures/.
The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause Analyst expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.
©  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 Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar's expectations not to occur or to differ significantly from what we expected.
Standardized performance for the International Small Company Fund, Investor Class can be found here. Past performance is no guarantee of future results.
Standardized performance for the Small Company Fund can be found here. Past performance is no guarantee of future results.
Principal Risk of Investing in the Fund: As with all mutual funds, an investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. There can be no assurances that the Fund will be successful in meeting its objectives. Investment in the Fund is also subject to market risk, investment style risk, investment advisor risk, market sector risk, equity securities risk, portfolio turnover risk, small companies’ risk, and other risk as set forth in the Fund’s Prospectus. Fund’s that emphasize investment in smaller companies generally experience greater price volatility.
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available at www.browncapital.com or by calling Shareholder Services at 1-877-892-4226. The prospectus should be read carefully before investing.
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