Bridge Builder Tax Managed Small/Mid Cap Fund

Objective

The Bridge Builder Tax Managed Small/Mid Cap Fund aims to provide a tax-efficient investment return consisting of capital appreciation.

Strategy

The Tax Managed Small/Mid Cap Fund primarily invests in equity securities of small and mid-capitalization companies, which are defined as those whose market capitalizations typically fall within the range of the Russell MidCap Index and the Russell 2000 Index. The Fund employs a multi-manager sub-advised structure. The Fund seeks to manage the impact of taxes through its use of a tax overlay manager.

Fund Facts

As of March 31, 2024

Ticker: BBTSX

CUSIP: 10803R843

Benchmark Index: Russell 2500® Index

Inception Date: June 01, 2022

Total Assets: $1.27 Billion

Gross Expense Ratio: 0.76%

Net Expense Ratio*: 0.52%

Number of Holdings: 1,128

*Contractual fee waivers in effect through October 28, 2024.

Goldman Sachs Asset Management, L.P.

Seeks long-term growth of capital and recommends primarily small capitalization and medium capitalization U.S. companies, but may also recommend foreign companies. Goldman Sachs utilizes a fundamental process to evaluate companies based on specific characteristics it believes indicate a high-quality business with sustainable growth. These specific characteristics include strong business franchises, favorable long-term prospects, and excellent management. Goldman Sachs also considers the valuation of a company in recommending its purchase or sale.

J.P. Morgan Investment Management Inc.

Recommends investments primarily in medium capitalization companies and seeks growth companies with leading competitive positions that can achieve sustainable growth. J.P. Morgan employs a fundamental bottom-up investment process that combines research, valuation, and stock selection to identify companies that have a history of above-average growth or which it believes will achieve above-average growth in the future.

Neuberger Berman Investment Advisers LLC

Seeks to recommend investments mainly in small and medium capitalization U.S. companies, but may also recommend foreign companies. Neuberger Berman focuses on companies that it believes to be high quality companies that have strong current market shares and balance sheets, and whose financial strength is largely based on existing business lines rather than future business prospects. Factors in identifying these companies may include: a history of above-average returns, an established market niche, circumstances that would make it difficult for new competitors to enter the market, the ability to finance their own growth, and/or a belief by Neuberger Berman that the company has sound future business prospects. Neuberger Berman seeks to diversify among many companies and industries, but, at times, may emphasize certain sectors that it believes will benefit from market or economic trends.

AllianceBernstein L.P.

Recommends primarily small and medium capitalization U.S. companies that it believes are undervalued by using AllianceBernstein’s fundamental value approach. In making recommendations, AllianceBernstein uses its fundamental and quantitative research to identify companies whose long-term earnings power is not reflected in the current market price of their securities.

Allspring Global Investments, LLC

Recommends primarily medium capitalization companies that it believes are undervalued, have the potential for above average capital appreciation with below average risk, and that possess a long-term competitive advantage provided by a durable asset base, strong balance sheets, and sustainable cash flows. Typical recommendations by Allspring include stocks of companies that are generally out of favor in the marketplace or are undergoing reorganization or other corporate action that may create above-average price appreciation.

Parametric Portfolio Associates LLC

Serves as the Fund’s overlay manager and also serves as the Fund’s direct indexing manager. As the Fund’s direct indexing manager, Parametric manages one or more allocated portions of the Fund pursuant to a strategy that is designed to provide similar exposure to the Russell Midcap® Growth Index, Russell Midcap® Value Index, Russell 2000® Growth Index and Russell 2000® Value Index. As the Fund’s overlay manager, Parametric implements a portfolio that represents the aggregation of the model portfolios of the Fund’s sub-advisers, including with respect to each direct indexing portion of the Fund, at weightings set by the Adviser. In this role, Parametric manages the impact of taxes by, among other things, selling stocks with the lowest tax cost first, opportunistically harvesting losses and deferring recognition of taxable gains, where possible.

MONTHLY PERFORMANCE AS OF 06/30/2024
1 M 3 M YTD 1 Y 3 Y 5 Y Since Inception
06/01/2022		 Gross Expense
Ratio
Bridge Builder Tax Managed Small/Mid Cap Fund -1.17% -3.57% 4.67% 10.90% -- -- 9.16% 0.76%
Russell 2500® Index -1.50% -4.27% 2.35% 10.47% -- -- 6.64%
QUARTERLY PERFORMANCE AS OF 06/30/2024
3 M YTD 1 Y 3 Y 5 Y Since Inception
06/01/2022
Bridge Builder Tax Managed Small/Mid Cap Fund -3.57% 4.67% 10.90% -- -- 9.16%
Russell 2500® Index -4.27% 2.35% 10.47% -- -- 6.64%
DAILY NAV AS OF July 26, 2024
NAV NAV Change
Bridge Builder Tax Managed Small/Mid Cap Fund $12.38 $0.18

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-855-823-3611. Returns shown for the Fund include the reinvestment of all dividends, if any. Total return calculations reflect the effect of the Advisers fee waiver agreement for the Fund. If such fee waivers had not occurred, the quoted performance would be lower. Performance for periods greater than one-year is annualized.

The Gross Expense Ratio, per the Fund’s latest prospectus, includes all categories of expenses before any expense reductions or fee waivers.

Ex-Date Distribution Type $ Amount Per Share Reinvest Price Reinvest Date
12/27/2023 Income Dividend 0.092890000 $11.43 12/27/2023
12/27/2022 Income Dividend 0.026300000 $9.81 12/27/2022
LEARN MORE

Past performance does not guarantee future results.

Mutual fund investing involves risk. The value of your investment in the Fund could go down as well as up. The Fund may invest in non-U.S dollar-denominated foreign securities (including emerging markets), which may be more sensitive to currency fluctuations, political and economic instability, differing government regulations and liquidity risk. The Fund may also invest in derivatives which could increase the Fund’s volatility. Multi-manager and multi-style management may lead to overlapping securities transactions and higher transaction expenses compared to single investment management styles. Outcomes depend on the skill of the sub-advisers and adviser and the allocation of assets amongst them. Growth and value stocks can perform differently from the market as a whole and other types of stocks and may underperform other types of investments or investment styles, as different market styles tend to shift in and out of favor depending upon market conditions and other factors. The Fund may invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility than large companies.

Click here for index and financial term definitions.

Before you invest in The Bridge Builder Funds, please refer to the prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectus by calling 1-855-823-3611. The prospectus should be read and considered carefully before you invest or send money.

The Bridge Builder Funds are only available through eligible Edward Jones advisory programs.

The Bridge Builder Funds are distributed by ALPS Distributors, Inc.
There is no affiliation between ALPS Distributors, Inc. and Bridge Builder Trust and any of its affiliates and subsidiaries.