UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21829 Name of Fund: BBH TRUST 		BBH U.S. Treasury Money Fund 		BBH Money Market Fund BBH Tax Exempt Money Fund Fund Address: 140 Broadway 	New York, NY 10005 Name and address of agent for service: 	Mark Nixon 	BBH Trust, 140 Broadway, New York, NY, 10005 	Mailing address: 140 Broadway, New York, NY, 10005 Registrant's telephone number, including area code: (800) 625-5759 Date of fiscal year end: 06/30/08 Date of reporting period: 07/01/07-12/31/07 ITEM 1 - Attach shareholder report BROWN [LOGO] BROTHERS HARRIMAN Semi-Annual Report DECEMBER 31, 2007 BBH U.S. Treasury Money Fund BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO ALLOCATION December 31, 2007 (unaudited) BREAKDOWN BY SECURITY TYPE Percent of U.S. $ Value Net Assets ------------ ---------- U.S. Treasury Bills................................ $63,727,206 91.8% U.S. Treasury Note................................. 1,115,290 1.6 Other Assets in Excess of Liabilities.............. 4,586,233 6.6 ----------- ----- Net Assets......................................... $69,428,729 100.0% =========== ===== All data as of December 31, 2007. The Fund's breakdown by security type is expressed as a percentage of net assets and may vary over time. The accompanying notes are an integral part of these financial statements. 2 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS December 31, 2007 (unaudited) Principal Amount Value - ------------ ----------- U.S. TREASURY BILLS (a) (91.8%) $ 14,705,000 due 01/03/08, 4.246%............................. $14,701,587 12,395,000 due 01/10/08, 4.171%............................. 12,382,282 8,655,000 due 02/07/08, 2.519%............................. 8,632,672 4,610,000 due 03/06/08, 2.972%............................. 4,585,445 10,000,000 due 04/10/08, 2.753%............................. 9,924,167 11,625,000 due 05/22/08, 3.197%............................. 11,480,430 2,050,000 due 06/12/08, 3.216%............................. 2,020,623 ----------- Total U.S. Treasury Bills........................ 63,727,206 ----------- U.S. TREASURY NOTE (1.6%) 1,125,000 due 05/15/08, 2.625%............................. 1,115,290 ----------- TOTAL INVESTMENTS, AT AMORTIZED COST.................. 93.4% $64,842,496 OTHER ASSETS IN EXCESS OF LIABILITIES................. 6.6 4,586,233 ----- ----------- NET ASSETS............................................ 100.0% $69,428,729 ===== =========== - ---------- (a) Rates shown are yields to maturity at time of purchase. The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 3 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES December 31, 2007 (unaudited) ASSETS: Investments, at amortized cost............................... $64,842,496 Cash ........................................................ 4,707,289 Interest receivable and other assets......................... 3,733 ----------- Total Assets.............................................. 69,553,518 ----------- LIABILITIES: Payables for: Professional fees......................................... 30,649 Shareholder servicing fees................................ 28,215 Investment advisory fees.................................. 18,809 Administrative fees....................................... 13,206 Dividends declared........................................ 4,396 Custody and accounting fees............................... 3,018 Board of Trustees' fees................................... 1,000 Accrued expenses and other liabilities....................... 25,496 ----------- Total Liabilities......................................... 124,789 ----------- NET ASSETS, for 69,428,862 fund shares outstanding.............. $69,428,729 =========== Net Assets Consist of: Paid in capital.............................................. $69,428,729 ----------- Net Assets $69,428,729 =========== NET ASSET VALUE AND OFFERING PRICE PER SHARE.................... $1.00 ===== The accompanying notes are an integral part of these financial statements. 4 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the six months ended December 31, 2007 (unaudited) NET INVESTMENT INCOME: Income: Investment income........................................... $1,393,988 ---------- Expenses: Shareholder servicing fees.................................. 74,527 Investment advisory fees.................................... 49,685 Administrative fees......................................... 33,123 Professional fees........................................... 14,850 State Registration fees..................................... 14,033 Custody and accounting fees................................. 12,077 Board of Trustees' fees..................................... 4,909 Miscellaneous expenses...................................... 39,380 ---------- Total Expenses............................................ 242,584 Expense offset arrangement................................ (3,135) ---------- Net Expenses.............................................. 239,449 ---------- Net Investment Income.......................................... $1,154,539 ========== The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 5 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS For the six months ended For the December 31, 2007 year ended (unaudited) June 30, 2007 ----------------- ------------- INCREASE (DECREASE) IN NET ASSETS: From Operations: Net investment income .................................................... $ 1,154,539 $ 3,842,702 Dividends declared from net investment income ............................... (1,154,539) (3,842,702) ------------- ------------- From Fund Share (Principal) Transactions at Net Asset Value of $1.00 per share: Fund shares sold ....................................................... 102,585,482 169,360,686 Fund shares issued in reinvestment of dividends ........................ 443,600 1,684,859 Fund shares repurchased ................................................ (108,840,117) (207,159,757) ------------- ------------- Net decrease in net assets resulting from fund share transactions ........................................ (5,811,035) (36,114,212) ------------- ------------- NET ASSETS: Beginning of year ........................................................... 75,239,764 111,353,976 ------------- ------------- End of period ............................................................... $ 69,428,729 $ 75,239,764 ============= ============= The accompanying notes are an integral part of these financial statements. 6 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Selected per share data and ratios for a share outstanding throughout each period For the six months ended December 31, For the years ended June 30, 2007 ------------------------------------------------ (unaudited) 2007 2006 2005 2004 2003 ------ ------ ------ ------ ------ ------ Net asset value, beginning of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations: Net investment income.......................... 0.02 0.04 0.03 0.01 0.001 0.01 Dividends to shareholders from net investment income............................. (0.02) (0.04) (0.03) (0.01) (0.00)(1) (0.01) ------ ------ ------ ------ ------ ------ Net asset value, end of period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== ====== Total return.......................... 1.76% 4.45% 3.35% 1.41% 0.40% 0.91% Ratios/Supplemental data: Net assets, end of period (in millions)................... $69 $75 $111 $141 $117 $137 Ratio of expenses to average net assets Net expenses paid by Fund....................... 0.72%(2) 0.62% 0.59% 0.56% 0.59% 0.57% Expense offset arrangement................... 0.01%(2) 0.01% 0.00%(3) 0.01% 0.00%(3) 0.00%(3) ------ ------ ------ ------ ------ ------ Total expenses.................. 0.73%(2) 0.63% 0.59% 0.57% 0.59% 0.57% ====== ====== ====== ====== ====== ====== Ratio of net investment income to average net assets...................... 3.49%(2) 4.36% 3.25% 1.49% 0.39% 0.92% - ---------- (1) Less than $0.01 per share. (2) Annualized. (3) Less than 0.01%. The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 7 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS December 31, 2007 (unaudited) 1. Organization and Significant Accounting Policies. BBH U.S. Treasury Money Fund (the "Fund") is a separate, diversified series of BBH Trust (the "Trust"), which is registered under the Investment Company Act of 1940, as amended. The Trust is an open-end management investment company organized as a Massachusetts business trust on June 7, 1983 and re-organized as a Delaware statutory trust on June 12, 2007. The Fund commenced operations on March 12, 1991. The Declaration of Trust permits the Trustees to create an unlimited number of series, each of which may issue a separate class of shares. The Trustees have authorized the issuance of an unlimited number of shares of the Fund without a par value. At December 31, 2007, there were seven series of the Trust. The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements and are based, in part, on the following accounting policies. Actual results could differ from those estimates. A. Valuation of Investments. The Fund values its investments at amortized cost, which approximates market value. The amortized cost method values a security at its cost at the time of purchase and thereafter assumes a constant amortization to maturity of any discount or premium. The Fund's use of amortized cost is in compliance with Rule 2a-7 of the Investment Company Act of 1940. B. Investment Transactions and Income. Investment transactions are accounted for on the trade date. Realized gains and losses, if any, from investment transactions are determined on the basis of identified cost. Interest income consists of interest accrued and discount earned (including both original issue and market discount) and premium amortization on the investments of the Fund, accrued ratably to the date of maturity. C. Federal Income Taxes. Each series of the Trust is treated as a separate entity for federal income tax purposes. It is the Fund's policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Accordingly, no federal income tax provision is required. At December 31, 2007, the cost of investments for federal income tax purposes was equal to the amortized cost of investments for financial statement purposes. D. Dividends and Distributions to Shareholders. Dividends from net investment income are declared daily and paid monthly to shareholders. The Fund declared dividends in the amount of $1,154,539 during the six months ended December 31, 2007. The Fund declared dividends in the amounts of $3,842,702 and $3,683,261 for the years ended June 30, 2007 and June 30, 2006, respectively. The tax character of the dividends declared in the six months and years ended was 100% ordinary income. 8 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2007 (unaudited) E. Accounting Developments. During the current year, the Fund adopted FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The adoption of FIN 48 had no impact on the operations of the Fund for the period ended December 31, 2007. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the implication of SFAS 157. At this time its impact on the Fund's financial statements has not yet been determined. 2. Transactions with Affiliates. Investment Advisory and Administrative Fees. Effective June 12, 2007, under a combined Investment Advisory and Administrative Services Agreement ("Agreement") with the Trust, Brown Brothers Harriman & Co. ("BBH") provides investment advice, portfolio management and administrative services to the Fund. BBH receives a combined fee from the Fund for investment advisory and administrative services calculated daily and paid monthly at an annual rate equivalent to 0.25% of the Fund's daily net assets. Prior to June 12, 2007, under a separate agreement that covered only investment advisory fees, BBH received a fee from the Fund calculated daily and paid monthly at an annual rate of 0.15% of the Fund's average daily net assets and Brown Brothers Harriman Trust Company, LLC ("BBHTC") the Fund's administrator, under a separate agreement that covered only administrative services, received a fee from the Fund calculated daily and paid monthly at an annual rate equivalent to 0.10% of the Fund's average daily net assets. BBH has a sub-administration services agreement with Federated Services Company ("FSC") for which FSC receives compensation paid by BBH. For the six months ended December 31, 2007, the Fund incurred $82,808 for investment advisory and administration services. Shareholder Servicing Fees. The Trust has a shareholder servicing agreement with BBH for which BBH receives a fee from the Fund calculated daily and paid monthly at an annual rate of 0.225% of the Fund's average daily net assets. For the six months ended December 31, 2007, the Fund incurred $74,527 for shareholder servicing services. Custody and Accounting Fees. BBH acts as a custodian and receives a custody and accounting fee from the Fund calculated daily and paid monthly. The custody fee is a transaction based fee with an annual minimum of $20,000, and the accounting fee is calculated at 0.01% per annum on the first FINANCIAL STATEMENT DECEMBER 31, 2007 9 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2007 (unaudited) $1 billion of net assets and 0.005% per annum on all net assets over $1 billion. For the six months ended December 31, 2007, the Fund incurred $12,077 for custody and accounting services. These fees were reduced by $3,135 as a result of an expense offset arrangement with the Fund's custodian. In the event that the Fund is overdrawn, under the custody agreement with BBH, BBH will make overnight loans to the Fund to cover overdrafts. Pursuant to their agreement the Fund will be charged interest based on LIBOR on the day of overdraft plus one percent. The total interest paid by the Fund for the six months ended December 31, 2007 was $7,061. Board of Trustees' Fees. Each Trustee receives an annual fee as well as reimbursement for reasonable out-of-pocket expenses from the Fund. For the six months ended December 31, 2007, the Fund incurred $4,909 for Trustees' fees. 3. Federal Income Tax Status. At June 30, 2007, the Fund had a net capital loss carryover, which is available to offset future capital gains to the extent provided by regulations as follows: Expiration date Amount --------------- ------- June 30, 2015 $12,199 ------- $12,199 ======= To the extent that this net capital loss carryover is used to offset future capital gains, it is probable the gains so offset will not be distributed to shareholders since any such distributions may be taxable to shareholders as ordinary income. 10 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES December 31, 2007 (unaudited) EXAMPLE As a shareholder of BBH U.S. Treasury Money Fund (the "Fund"), you may incur two types of costs: (1) transaction costs on purchase payments, reinvested dividends, or other distributions; and exchange fees; and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007). ACTUAL EXPENSES The first line of the table below provides information about actual account values and actual expenses. You may use information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during the period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid during the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Expenses Paid Beginning Ending During Period Account Value Account Value July 1, 2007 to July 1, 2007 December 31, 2007 December 31, 2007(1) ------------- ----------------- -------------------- Actual...................... $1,000 $1,017.60 $3.65 Hypothetical(2)............. $1,000 $1,021.52 $3.66 - ---------- (1) Expenses are equal to the Fund's annualized expense ratio of 0.72%, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). (2) Assumes a return of 5% before expenses. For the purpose of the calculation, the applicable annualized expense ratio is subtracted from the assumed return before expenses. FINANCIAL STATEMENT DECEMBER 31, 2007 11 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION December 31, 2007 (unaudited) Approval of Investment Advisory/Administrative Services Agreement At a meeting held on December 11, 2006, the Board of Trustees (the "Board") of the Trust unanimously approved a new Combined Investment Advisory/Administrative Services Agreement ("Combined Agreement"). The Board determined that the terms of the Combined Agreement will be substantially identical to those of the current advisory and administration agreements of the Funds, noting that the most significant difference in the Combined Agreement is a single fee for both advisory and administrative services. The following is a summary of the factors the Board took into consideration in making its determination to approve the new Combined Agreement. Nature, Extent and Quality of Services Provided by Brown Brothers Harriman & Co. ("BBH") The Board noted that, under the Combined Agreement in respect of each Fund, BBH, subject to the supervision of the Board, will be responsible for providing a continuous investment program and making purchases and sales of portfolio securities consistent with the Funds' investment objective and policies. Under the Combined Agreement, BBH also provides administrative services to each Fund. The Board considered the scope and quality of services to be provided by BBH under the Combined Agreement and noted that the scope of services provided had expanded over time, primarily, as a result of regulatory developments. The Board noted that, for example, BBH is responsible for maintaining and monitoring its own and, to varying degrees, the Funds' compliance program, and these compliance programs have recently been refined and enhanced in light of new regulatory requirements. The Board considered the quality of the investment research and administrative capabilities of BBH and the other resources it has dedicated to performing services for the Funds. The Board concluded that, overall, they were satisfied with the nature, extent and quality of services expected to be provided to each of the Funds under the Combined Agreement. Costs of Services Provided and Profitability to BBH At the request of the Board, BBH provided information concerning the profitability of BBH's current investment company advisory and other fees. The Board also reviewed BBH's profitability data for each Fund, which also included the effect of revenue generated by the shareholder servicing, administration, custody and other fees paid by the Fund. The Board discussed the difficulty of making comparisons of profitability because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the service provider, the types of funds it manages and administers, its business mix, numerous assumptions regarding allocations and the entity's capital structure and cost of capital. In considering profitability information, the Board considered the effect of fall-out benefits on BBH's expenses, as well as the "revenue sharing" arrangements BBH has entered into with certain 12 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) entities that distribute shares of the Funds. The Board focused on profitability of BBH's relationships with the Funds before taxes and distribution expenses. The Board concluded that it was satisfied that BBH's level of profitability from its relationship with each Fund was not excessive. Fall-Out Benefits The Board considered that BBH does not allocate the Funds' portfolio transactions for third party research, although it did benefit from proprietary research received from brokers that execute the Funds' purchases and sales of securities. The Board recognized that the aggregate amount of commissions generated by Fund transactions was unlikely to result in the Funds receiving from full service broker dealers substantial discounts on commission rates. The Board received and reviewed information concerning BBH's policies with respect to allocating portfolio brokerage. The Board also considered that BBH receives shareholder servicing fees from certain funds, and is the Funds' administrator, custodian and securities lending agent. The Board noted that BBH retained no portion of the 12b-1 fees paid by any Fund that operated with a Rule 12b-1 plan. The Board recognized that BBH's profitability would be somewhat lower if it did not receive proprietary research for commissions or, if it did not receive the other benefits described above. The Board recognized that most Fund shareholders were also BBH clients, and that substantial assets are invested in the Funds as a result of an overall investment management program for the shareholder. The Board noted that the Funds also derive reputational and other benefits from their association with BBH and their use of the BBH name, which is licensed to the Funds by BBH. Thus, the Board did not believe that BBH revenues associated with its clients should be fairly regarded as "fallout" benefit from the Funds. Economies of Scale The Board noted that the Funds' combined fee schedules, other than the fee schedule for BBH Money Market Fund, do not contain breakpoints. As a result, if assets increase, the fee rates would not be reduced for these Funds on the incremental assets. With respect to the BBH Money Market Fund, the breakpoint will be reviewed every three (3) years by the Board, and may be adjusted upwards to take into account the effects of inflation or such other basis as may be appropriate, subject to the approval of shareholders to the extent required by the 1940 Act. There may be other economies of scale because many expenses did not rise (and fall) proportionally to increases (and decreases) in total net assets. The Board noted that BBH had priced its services in recognition of the fact that it was largely its own clients who were shareholders and, accordingly, sought to assure that the cost of these services and total expenses for each Fund were fair and reasonable. In FINANCIAL STATEMENT DECEMBER 31, 2007 13 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) addition, the Board noted that over the years BBH had supported certain Funds through fee waivers and expense reimbursements. Based on information they had been provided over many years, the Board observed that in the mutual fund industry as a whole, as well as among funds similar to the Funds, there appeared to be no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. In light of the Funds' current size and expense structure, the Board concluded that it was unnecessary at this time to consider breakpoints with respect to the Funds, other than for the BBH Money Market Fund. Investment Results The Board considered the investment results of each of the Funds as compared to investment companies with its peers and with one or more selected securities indices. In addition to the information received by the Board for the meeting held on December 11, 2006, the Board received detailed performance information for each Fund at each regular Board meeting during the year. At the meeting held on December 11, 2006, the Board reviewed information showing performance of each Fund compared to its peers over the prior 1-, 3-, and 5- year periods and compared the performance information to one or more securities indices over comparable periods. Combined Fee Rate The Board considered the fee rate to be paid by each Fund to BBH. The Board recognized that it is difficult to make comparisons of these fee rates, and the combined advisory and administration fees, because there are variations in the services that are included in the fees paid by other funds. The Board considered the depth and range of services provided under the Combined Agreement. For example, in addition to a continuous investment program, BBH provides, among other things, officers (including the Funds' Chief Compliance Officer and officers to provide required certifications) and administrative services, such as shareholder communications, and tax compliance, with the attendant costs and exposure to liability. BBH also coordinates the provision of services to the Funds by nonaffiliated service providers. The following factors specific to BBH U.S. Treasury Money Fund also were noted and considered by the Board in deciding to approve the Combined Agreement: The Board considered the 1-, 3- and 5-year annualized total returns of the BBH U.S. Treasury Money Fund versus the iMoneyNet (Treasury Retail). The Board noted that the Fund outperformed or performed in line with that average over all relevant periods. Moreover, the Board noted that it believes to have been appropriately advised by BBH about its duration and average weighted maturity decisions during the relevant periods and were satisfied overall with the competitiveness of the performance. The Board also noted that the BBH U.S. Treasury Money Fund had successfully maintained a stable net asset value of one dollar at 14 BBH U.S. TREASURY MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) all times. Taking into account these comparisons and the other factors considered, the Trustees concluded that the BBH U.S. Treasury Money Fund's investment results over time and its total expense ratio had been satisfactory. Conflicts of Interest As a general matter, certain conflicts of interest may arise in connection with a portfolio manager's management of a Fund's investments, on the one hand, and the investments of other accounts for which the portfolio manager is responsible, on the other. For example, it is possible that the various accounts managed could have different investment strategies that, at times, might conflict with one another to the possible detriment of the Fund. Alternatively, to the extent that the same investment opportunities might be desirable for more than one account, possible conflicts could arise in determining how to allocate them. Other potential conflicts might include conflicts created by specific portfolio manager compensation arrangements, and conflicts relating to selection of brokers or dealers to execute Fund portfolio trades and/or specific uses of commissions from Fund portfolio trades (for example, research, or "soft dollars"). BBH has adopted and implemented policies and procedures, including brokerage and trade allocation policies and procedures, which it believes address the conflicts associated with managing multiple accounts for multiple clients. In addition, BBH monitors a variety of areas, including compliance with account investment guidelines, the inclusion only of securities approved for purchase by the BBH's Fixed Income Credit Committee, and compliance with the BBH's Code of Ethics. Finally, BBH has structured the portfolio managers' compensation in a manner, and the Funds have adopted policies and procedures, reasonably designed to safeguard a Fund from being negatively affected as a result of any such potential conflicts. FINANCIAL STATEMENT DECEMBER 31, 2007 15 INVESTMENT ADVISER AND ADMINISTRATOR BROWN BROTHERS HARRIMAN 140 BROADWAY NEW YORK, NY 10005 DISTRIBUTOR EDGEWOOD SERVICES, INC. 5800 CORPORATE DRIVE PITTSBURGH, PA 15237-7000 SHAREHOLDER SERVICING AGENT BROWN BROTHERS HARRIMAN 140 BROADWAY NEW YORK, NY 10005 (800) 625-5759 To obtain information or make shareholder inquiries: By telephone: Call 1-800-575-1265 By E-mail send your request to: bbhfunds@bbh.com On the internet: www.bbhfunds.com This report is submitted for the general information of shareholders and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of the Fund. Such offering is made only by the prospectus, which includes details as to offering price and other material information. The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." Information on Form N-Q is available without charge and upon request by calling the Funds at the toll-free number listed above. A text only version can be viewed online or downloaded from the SEC's website at http://www.sec.gov; and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC (call 1-800-SEC-0330 for information on the operation of the Public Reference Room). You may also access this information from the BBH website at BBH.com by clicking on "BBH Mutual Funds" and selecting "Online Documents/Holdings Information." A copy of the Fund's Proxy Voting Policy is available upon request by calling the toll-free number listed above. A text-only version of the policy can be viewed online or downloaded from the SEC at www.sec.gov. BROWN [LOGO] BROTHERS HARRIMAN BROWN [LOGO] BROTHERS HARRIMAN Semi-Annual Report DECEMBER 31, 2007 BBH MONEY MARKET FUND BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- PORTFOLIO ALLOCATION December 31, 2007 (unaudited) BREAKDOWN BY SECURITY TYPE Percent of U.S. $ Value Net Assets -------------- ---------- Certificates of Deposit............................ $ 468,618,638 19.0% Commercial Paper................................... 1,134,742,974 46.1 Corporate Bonds.................................... 308,257,589 12.5 Municipal Bonds.................................... 96,354,700 3.9 Mutual Fund........................................ 34,513,000 1.4 U.S. Government Agency Obligations................. 87,211,576 3.6 Repurchase Agreements.............................. 325,000,000 13.2 Other Assets in Excess of Liabilities.............. 7,196,245 0.3 -------------- ----- Net Assets......................................... $2,461,894,722 100.0% ============== ===== All data as of December 31, 2007. The Fund's breakdown by security type is expressed as a percentage of net assets and may vary over time. The accompanying notes are an integral part of these financial statements. 2 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ CERTIFICATES OF DEPOSIT (19.0%) $15,400,000 Abbey National Treasury Services .......................... 01/07/08 5.150% $ 15,400,000 10,000,000 Abbey National Treasury Services .......................... 01/22/08 5.080 10,000,796 25,000,000 Banco Bilbao Vizcaya Argentaria ........................... 01/04/08 5.240 25,000,021 15,000,000 Bank of Montreal(1) ....................................... 10/31/08 5.050 15,000,642 25,400,000 Bank of Nova Scotia ....................................... 02/27/08 4.960 25,400,397 27,875,000 Bank of Scotland, Plc ..................................... 03/17/08 5.060 27,878,446 25,000,000 Bank of Tokyo-Mitsubishi UFJ .............................. 06/04/08 5.340 25,000,510 25,000,000 Barclays Bank, Plc ........................................ 01/23/08 5.070 25,001,056 12,500,000 Barclays Bank, Plc ........................................ 02/29/08 5.250 12,504,776 25,000,000 Canadian Imperial Bank of Commerce ........................ 01/31/08 4.760 25,000,206 25,000,000 Canadian Imperial Bank of Commerce(1) ..................... 03/17/08 5.118 24,998,433 15,000,000 Citibank NA ............................................... 01/23/08 4.810 15,000,091 10,000,000 Credit Suisse, New York ................................... 05/21/08 5.300 10,000,372 9,000,000 Credit Suisse, New York ................................... 06/13/08 4.900 9,000,400 25,000,000 Depfa Bank, Plc ........................................... 01/18/08 5.180 25,000,000 16,750,000 HBOS Treasury Services .................................... 05/29/08 5.335 16,741,578 20,750,000 Lloyds TSB Bank, Plc ...................................... 01/25/08 4.855 20,750,137 21,000,000 M&I Marshall & Ilsley Bank ................................ 02/11/08 4.800 21,000,000 25,000,000 Royal Bank of Scotland, Plc ............................... 01/29/08 4.800 25,000,000 9,700,000 Royal Bank of Scotland, Plc.(1) ........................... 03/26/08 4.810 9,695,749 5,000,000 Suntrust Bank(1) .......................................... 04/21/08 5.180 5,000,376 25,000,000 Toronto Dominion Bank ..................................... 01/07/08 4.710 25,000,041 5,250,000 Unicredito Italiano, New York(1) .......................... 05/02/08 5.215 5,242,952 25,000,000 Westpac Banking Corp. ..................................... 01/25/08 4.900 25,000,823 25,000,000 Wilmington Trust Co. ...................................... 01/09/08 5.360 25,000,836 -------------- Total Certificates of Deposit ............................. 468,618,638 -------------- COMMERCIAL PAPER (46.1%) 4,500,000 Abbey National North America LLC .......................... 01/08/08 4.708 4,495,914 5,499,000 ABN-AMRO NA ............................................... 01/14/08 5.075 5,488,972 25,000,000 Aegon Funding Corp. ....................................... 01/23/08 5.034 24,924,069 21,000,000 Archer Daniels Midland Co. ................................ 01/17/08 4.515 20,958,093 25,000,000 Archer Daniels Midland Co. ................................ 01/29/08 4.556 24,912,111 25,000,000 Bank of America Corp. ..................................... 03/20/08 4.828 24,739,410 19,600,000 Brown University .......................................... 01/04/08 4.615 19,592,487 The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 3 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ COMMERCIAL PAPER (continued) $ 10,000,000 Calyon North America, Inc. ................................ 03/11/08 5.013% $ 9,903,750 28,100,000 Catholic Health Initiative ................................ 02/12/08 4.800 28,100,000 14,800,000 Catholic Health Initiative ................................ 05/05/08 4.960 14,800,000 25,000,000 CBA (Delaware) Finance .................................... 02/19/08 4.941 24,833,966 24,000,000 City of Chicago, Illinois ................................. 01/14/08 4.766 23,958,833 22,505,000 City of Chicago, Illinois ................................. 06/04/08 4.912 22,040,335 40,050,000 Columbia University ....................................... 01/02/08 4.698 40,044,793 11,900,000 ConocoPhillips Co. ........................................ 01/08/08 4.582 11,889,472 15,000,000 ConocoPhillips Co. ........................................ 01/23/08 4.890 14,955,725 10,000,000 Cornell University ........................................ 01/09/08 4.633 9,989,778 25,000,000 Cornell University ........................................ 01/10/08 4.261 24,973,437 10,000,000 Cornell University ........................................ 02/05/08 4.582 9,955,764 25,000,000 Danske Corp. .............................................. 01/31/08 4.705 24,903,125 7,100,000 De Kalb County, Georgia Development Authority Revenue(1).................................... 03/03/08 5.140 7,100,000 25,000,000 Dover Corp. ............................................... 01/14/08 4.333 24,961,000 10,650,000 Duke University ........................................... 01/11/08 4.366 10,637,131 25,000,000 Hartford Financial Services Group, Inc. ................... 01/15/08 4.707 24,954,597 15,000,000 HSBC USA, Inc. ............................................ 01/10/08 5.342 14,980,500 20,000,000 HVB US Finance, Inc. ...................................... 01/07/08 5.221 19,982,833 20,000,000 ING (US) Funding LLC ...................................... 01/04/08 4.710 19,992,217 25,000,000 ING (US) Funding LLC ...................................... 01/14/08 5.110 24,954,455 10,000,000 International Lease Finance Corp. ......................... 02/06/08 4.796 9,952,500 7,000,000 John Deere Credit Ltd. .................................... 01/18/08 4.576 6,984,960 12,000,000 Johns Hopkins University .................................. 01/14/08 4.700 12,000,000 25,100,000 Johns Hopkins University .................................. 01/16/08 4.700 25,100,000 50,000,000 Koch Resources LLC ........................................ 01/02/08 4.041 49,994,389 20,000,000 Leggett & Platt, Inc. ..................................... 01/02/08 3.901 19,997,833 20,000,000 Leggett & Platt, Inc. ..................................... 01/22/08 4.617 19,946,683 25,000,000 Lehman Brothers Holdings, Inc. ............................ 01/02/08 4.251 24,997,048 25,000,000 Los Angeles Department of Airports.. ...................... 01/09/08 4.784 24,973,889 15,000,000 Michigan State ............................................ 10/28/08 4.900 15,000,000 25,000,000 National Australia Funding (Delaware), Inc. ........................................ 01/07/08 4.728 24,980,458 25,000,000 North Carolina State ...................................... 02/06/08 4.950 25,000,000 The accompanying notes are an integral part of these financial statements. 4 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ COMMERCIAL PAPER (continued) $ 5,500,000 Northwestern University ................................... 01/16/08 4.585% $ 5,489,573 50,000,000 Rabobank USA Finance Corp. ................................ 01/02/08 3.741 49,994,805 25,000,000 Rabobank USA Finance Corp. ................................ 02/20/08 4.854 24,833,507 10,000,000 Rights of University of California.. ...................... 01/09/08 4.702 9,989,778 7,000,000 Rutgers State University .................................. 02/01/08 5.050 7,000,000 6,500,000 Rutgers State University .................................. 02/01/08 5.100 6,500,000 25,000,000 San Paolo IMI US Financial Co. ............................ 01/31/08 4.908 24,898,750 25,000,000 Societe Generale .......................................... 02/01/08 4.846 24,896,990 17,000,000 Southern Company Funding Corp. ............................ 01/14/08 4.574 16,972,068 7,000,000 Southern Company Funding Corp. ............................ 01/16/08 4.679 6,986,438 23,277,000 Southern Company Funding Corp. ............................ 01/17/08 4.594 23,229,722 13,588,000 Tennessee State School Bond ............................... 01/17/08 4.550 13,588,000 30,000,000 UBS Finance Delaware LLC .................................. 01/02/08 4.232 29,996,475 25,000,000 UBS Finance Delaware LLC .................................. 03/19/08 4.910 24,738,375 10,000,000 Unicredito Italiano Bank .................................. 06/02/08 5.447 9,780,275 5,000,000 University of Texas System Board of Regents ....................................... 01/07/08 4.700 5,000,000 25,000,000 Walnut Energy Center Authority ............................ 02/07/08 4.735 24,879,236 15,000,000 Walt Disney Co. ........................................... 02/15/08 4.541 14,915,625 14,200,000 Walt Disney Co. ........................................... 02/21/08 4.580 14,108,872 5,000,000 Yale University ........................................... 01/11/08 4.366 4,993,958 -------------- Total Commercial Paper .................................... 1,134,742,974 -------------- CORPORATE BONDS (12.5%) 10,000,000 Associates Corp. of North America ......................... 11/01/08 6.250 10,103,370 12,000,000 BNP Paribas(1) ............................................ 07/03/08 5.165 11,997,601 5,000,000 Credit Suisse USA, Inc.(1) ................................ 06/02/08 5.234 5,002,906 3,230,000 Dell, Inc. ................................................ 04/15/08 6.550 3,241,936 15,550,000 General Electric Capital Corp.(1) ......................... 01/03/08 5.290 15,550,204 25,000,000 General Electric Capital Corp.(1) ......................... 05/19/08 5.025 24,998,289 2,500,000 General Electric Capital Corp.(1) ......................... 08/22/08 4.966 2,498,415 1,747,000 General Electric Capital Corp. ............................ 10/15/08 3.600 1,732,927 3,750,000 General Electric Capital Corp.(1) ......................... 10/24/08 5.065 3,749,279 4,900,000 Hewlett-Packard Co. ....................................... 03/15/08 3.625 4,883,500 10,000,000 HSBC Finance Corp. ........................................ 03/11/08 4.125 9,977,186 The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 5 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ CORPORATE BONDS (continued) $ 4,420,000 HSBC Finance Corp. ........................................ 06/17/08 6.400% $ 4,444,894 15,850,000 International Lease Finance Corp. ......................... 06/02/08 4.625 15,803,897 7,500,000 John Deere Capital Corp. .................................. 01/15/08 3.900 7,495,934 6,850,000 John Deere Capital Corp.(1) ............................... 09/25/08 5.038 6,850,000 5,000,000 JP Morgan Chase & Co. ..................................... 10/15/08 5.750 5,040,200 20,000,000 JP Morgan Chase & Co.(1) .................................. 12/22/08 4.934 19,962,652 10,000,000 Lehman Brothers Holdings, Inc. ............................ 08/07/08 3.500 9,890,044 20,000,000 Morgan Stanley(1) ......................................... 01/11/08 4.618 19,995,375 4,062,000 Morgan Stanley ............................................ 04/01/08 3.625 4,045,702 15,250,000 National Rural Utilities Cooperative Finance Corp. .......................................... 02/15/08 3.875 15,227,099 20,000,000 NGSP, Inc.(1) ............................................. 06/01/46 5.100 20,000,000 25,000,000 PNC Bank NA(1) ............................................ 01/02/08 5.170 24,999,983 19,920,000 PNC Funding Corp. ......................................... 03/10/08 4.200 19,878,888 25,000,000 Wachovia Bank NA(1) ....................................... 10/03/08 4.320 24,919,032 16,000,000 Wells Fargo & Co. ......................................... 03/10/08 4.125 15,968,276 -------------- Total Corporate Bonds ..................................... 308,257,589 -------------- MUNICIPAL BONDS (3.9%) 5,500,000 Broward County, Florida, Airport Facility Revenue(1) .................................... 01/02/08 5.100 5,500,000 5,470,000 Cleveland, Ohio Airport System Revenue ................................................ 01/01/17 7.000 5,524,700 33,600,000 New York City Transitional Finance Authority(1) ........................................... 01/02/08 4.950 33,600,000 10,745,000 Portland, Maine(1) ........................................ 01/02/08 4.850 10,745,000 1,935,000 Private Colleges & Universities Authority(1) ........................................... 01/02/08 4.850 1,935,000 36,000,000 Texas State(1) ............................................ 01/02/08 5.080 36,000,000 3,050,000 Texas State(1) ............................................ 01/03/08 5.000 3,050,000 -------------- Total Municipal Bonds ..................................... 96,354,700 -------------- MUTUAL FUND (1.4%) 34,513,000 Reserve U.S. Government Fund 12 ........................... 12/01/49 5.053 34,513,000 -------------- The accompanying notes are an integral part of these financial statements. 6 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ U.S. GOVERNMENT AGENCY OBLIGATIONS (3.6%) $ 25,000,000 Federal Home Loan Bank .................................... 01/16/08 4.354% $ 24,954,792 25,000,000 Federal National Mortgage Assoc ........................... 01/24/08 4.328 24,931,160 12,490,000 Federal National Mortgage Assoc ........................... 03/20/08 4.292 12,373,513 25,000,000 Federal Home Loan Mortgage Corp. .......................... 01/17/08 4.324 24,952,111 -------------- Total U.S. Government Agency Obligations ............................................... 87,211,576 -------------- REPURCHASE AGREEMENTS (13.2%) 75,000,000 BNP Paribas (Agreement dated 12/31/07 collateralized by FNMA 6.000%, due 12/01/37, value $76,500,001) ......................... 01/02/08 4.500 75,000,000 100,000,000 Deutsche Bank (Agreement dated 12/31/07 collateralized by FMAC 4.500%-6.500%, due 09/01/20-11/01/36, value $77,600,436; and FNMA 5.367%, due 04/01/37, value $24,399,564)......................... 01/02/08 4.750 100,000,000 75,000,000 Royal Bank of Canada (Agreement dated 12/31/07 collateralized by FMAC 4.500%-7.000%, due 01/01/22-11/01/37, value $25,921,536; FNMA 3.843%-6.500%, due 07/01/19-09/01/47, value $38,764,685, and GNMA 5.000%-7.000%, due 09/15/33-09/20/37, value $11,813,780) ................ 01/02/08 4.750 75,000,000 75,000,000 Societe Generale (Agreement dated 12/31/07 collateralized by FNMA 4.500%-7.220%, due 10/01/33-08/01/45, value $76,500,000) ....................................... 01/02/08 4.600 75,000,000 -------------- Total Repurchase Agreements .............................. 325,000,000 -------------- TOTAL INVESTMENTS AT AMORTIZED COST ...................................... 99.7% $2,454,698,477 OTHER ASSETS IN EXCESS OF LIABILITIES .................................... 0.3 7,196,245 ----- -------------- NET ASSETS ............................................................... 100.0% $2,461,894,722 ===== ============== - ---------- (1) Variable rate instrument. Interest rates change on specific dates (such as coupon or interest payment date). The yield shown represents the December 31, 2007 coupon or interest rate. Abbreviations: FMAC - Financial Markets Association of Canada FNMA - Federal National Mortgage Association GNMA - Government National Mortgage Association The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 7 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES December 31, 2007 (unaudited) ASSETS: Investments, at amortized cost ........................... $2,129,698,477 Repurchase agreements .................................... 325,000,000 Interest and other receivables ........................... 9,366,714 -------------- Total Assets ......................................... 2,464,065,191 -------------- LIABILITIES: Due to Brown Brothers Harriman ........................... 140,770 Payables for: Administrative fees .................................... 893,896 Dividends declared ..................................... 561,627 Shareholder servicing fees ............................. 269,606 Custody and accounting fees ............................ 64,000 Professional fees ...................................... 61,820 Board of Trustees' fees ................................ 4,505 Accrued expenses and other liabilities ................... 174,245 -------------- Total Liabilities .................................... 2,170,469 -------------- NET ASSETS .................................................. $2,461,894,722 ============== Net Assets Consist of: Paid in capital .......................................... $2,461,894,722 -------------- Net Assets .................................................. $2,461,894,722 ============== NET ASSET VALUE AND OFFERING PRICE PER SHARE REGULAR SHARES NET ASSET VALUE ($1,390,629,255 / 1,390,628,772 shares outstanding) ...... $1.00 ===== INSTITUTIONAL SHARES NET ASSET VALUE ($1,071,265,467 / 1,071,265,950 shares outstanding) ...... $1.00 ===== The accompanying notes are an integral part of these financial statements. 8 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the six months ended December 31, 2007 (unaudited) NET INVESTMENT INCOME: Income: Investment income ......................................... $61,460,952 ----------- Expenses: Investment advisory and administrative fees ............... 2,553,346 Shareholder servicing fees ................................ 1,630,569 Custody and accounting fees ............................... 167,585 Board of Trustees' fees ................................... 90,877 Professional fees ......................................... 68,481 Miscellaneous expenses .................................... 240,977 ----------- Total Expenses .......................................... 4,751,835 ----------- Net Investment Income ....................................... $56,709,117 =========== The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 9 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS For the six months ended For the December 31, 2007 year ended (unaudited) June 30, 2007 ----------------- ------------- INCREASE (DECREASE) IN NET ASSETS: From Operations: Net investment income ................................. $ 56,709,117 $ 86,186,394 --------------- --------------- Dividends and distributions declared: From net investment income: Regular Shares ...................................... (30,163,666) (67,612,111) Institutional Shares ................................ (26,545,451) (18,574,283) --------------- --------------- Total dividends and distributions declared. ....... (56,709,117) (86,186,394) --------------- --------------- From Fund Share (Principal) Transactions at Net Asset Value of $1.00 per share: Fund shares sold .................................... 1,609,701,109 3,932,442,373 Fund shares issued in reinvestment of dividends ..... 20,265,298 39,649,577 Fund shares repurchased ............................. (1,479,885,719) (3,165,839,507) --------------- --------------- Net increase in net assets resulting from fund share transactions .................... 150,080,688 806,252,443 --------------- --------------- NET ASSETS: Beginning of year ....................................... 2,311,814,034 1,505,561,591 --------------- --------------- End of period ........................................... $ 2,461,894,722 $ 2,311,814,034 =============== =============== The accompanying notes are an integral part of these financial statements. 10 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Selected per share data and ratios for a Regular share outstanding throughout each period For the six months ended December 31, For the years ended June 30, 2007 ----------------------------------------------------------------- (unaudited) 2007 2006 2005 2004 2003 ------------ ------ ------ ------ ------ ------ Net asset value, beginning of year ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00 Income from investment operations: Net investment income ...................... 0.02 0.05 0.04 0.01 0.01 0.01 Dividends to shareholders from net investment income ......... (0.02) (0.05) (0.04) (0.01) (0.01) (0.01) ------ ------ ------ ------ ------ ------ Net asset value, end of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== ====== Total return ..................... 2.36% 4.97% 3.76% 1.72% 0.59% 1.06% Ratios/ Supplemental data: Net assets, end of period (in millions) ............... $1,391 $1,172 $1,506 $1,258 $1,375 $1,459 Ratio of expenses to average net assets .......... 0.51%(1) 0.51%(2) 0.53%(2) 0.52%(2) 0.52%(2) 0.52%(2) Ratio of net investment income to average net assets .................. 4.63%(1) 4.79%(2) 3.75%(2) 1.70%(2) 0.59%(2) 1.05%(2) - ---------- (1) Annualized. (2) Ratios include the Fund's share income, expenses paid by, and the expense offset arrangement of, the BBH US Money Market Portfolio, which the Fund invested in through June 12, 2007, as appropriate. The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 11 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Selected per share data and ratios for an Institutional share outstanding throughout the period For the period from For the six January 26, 2007 months ended (commencement of December 31, 2007 operations) through (unaudited) June 30, 2007 ----------------- ------------------- Net asset value, beginning of period ....................... $ 1.00 $ 1.00 Income from investment operations: Net investment income ................................... 0.02 0.02 Dividends to shareholders from net investment income ....... (0.02) (0.02) ------ ------ Net asset value, end of period ............................. $ 1.00 $ 1.00 ====== ====== Total return ............................................... 2.48% 2.21%(1) Ratios/ Supplemental data: Net assets, end of period (in millions) ................. $1,071 $1,140 Ratio of expenses to average net assets.................. 0.26%(2) 0.26%(2),(3) Ratio of net investment income to average net assets .... 4.87%(2) 5.07%(2),(3) - ---------- (1) Inception to date return. (2) Annualized. (3) Ratios include the Fund's share of income, expenses paid by, and the expense offset arrangement of, the BBH US Money Market Portfolio, which the Fund invested in through June 12, 2007, as appropriate. The accompanying notes are an integral part of these financial statements. 12 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS December 31, 2007 (unaudited) 1. Organization and Significant Accounting Policies. BBH Money Market Fund (the "Fund") is a separate, diversified series of BBH Trust (the "Trust"), which is registered under the Investment Company Act of 1940, as amended. The Trust is an open-end management investment company organized as a Massachusetts business trust on June 7, 1983 and re-organized as a Delaware statutory trust on June 12, 2007. The Fund commenced operations on December 12, 1983. The Declaration of Trust permits the Trustees to create an unlimited number of series, each of which may issue a separate class of shares. The Fund established a new class of shares designated as "Institutional Shares". Institutional Shares opened on December 19, 2006 and commenced operations on January 26, 2007. Regular Shares and Institutional Shares have different operating expenses. At December 31, 2007, there were seven series of the Trust. Prior to June 12, 2007 the Fund invested all of its investable assets in the BBH U.S. Money Market Portfolio (the "Portfolio"), a diversified, open-end management investment company having the same investment objectives as the Fund. Effective June 12, 2007, the Fund redeemed its shares of the Portfolio and began investing its assets directly. There were no changes to the Fund's investment policies and restrictions. The Fund recorded its share of the Portfolios' income and expenses daily until the date of the redemption. The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements and are based, in part, on the following accounting policies. Actual results could differ from those estimates. A. Valuation of Investments. The Fund values its investments at amortized cost, which approximates market value. The amortized cost method values a security at its cost at the time of purchase and thereafter assumes a constant amortization to maturity of any discount or premium. The Fund's use of amortized cost is in compliance with Rule 2a-7 of the Investment Company Act of 1940. B. Investment Transactions and Income. Investment transactions are accounted for on the trade date. Realized gains and losses, if any, from investment transactions are determined on the basis of identified cost. Interest income consists of interest accrued and discount earned (including both original issue and market discount) and premium amortization on the investments of the Fund, accrued ratably to the date of maturity. C. Repurchase Agreements. The Fund may enter into repurchase agreements with primary dealers of U.S. Government Obligations as designated by the Federal Reserve Bank of New York. Repurchase agreements are transactions in which the Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund's return on the transaction or effectively the interest rate paid by the FINANCIAL STATEMENT DECEMBER 31, 2007 13 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2007 (unaudited) dealer to the Fund. This return is unrelated to the interest rate on the underlying security. The Fund will enter into repurchase agreements only with banks and other recognized financial institutions, such as securities dealers, deemed creditworthy by the Investment Adviser. The Fund's custodian or sub-custodian will take possession of the securities subject to repurchase agreements. The Investment Adviser or sub-custodian will monitor the value of the underlying security each day to ensure that the value of the security always equals or exceeds the repurchase price. Repurchase agreements are subject to credit risks. Information regarding repurchase agreements is included in the Portfolio of Investments. D. Federal Income Taxes. Each series of the Trust is treated as a separate entity for federal income tax purposes. It is the Fund's policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Accordingly, no federal income tax provision is required. At December 31, 2007, the cost of investments for federal income tax purposes was equal to the amortized cost of investments for financial statement purposes. E. Dividends and Distributions to Shareholders. Dividends from net investment income are declared daily and paid monthly to shareholders. The Fund declared dividends in the amounts of $30,163,666 and $26,545,451 to Regular and Institutional shareholders, respectively, during the six months ended December 31, 2007. The Fund declared dividends in the amount of $67,612,111 and $18,574,283 to Regular and Institutional shareholders during the year ended June 30, 2007. The tax character of the dividends declared in the six months and year ended was 100% ordinary income. F. Accounting Developments. During the current year, the Fund adopted FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The adoption of FIN 48 had no impact on the operations of the Fund for the period ended December 31, 2007. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the implication of SFAS 157. At this time its impact on the Fund's financial statements has not yet been determined. 14 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2007 (unaudited) 2. Transactions with Affiliates. Investment Advisory and Administrative Fees. Effective June 12, 2007, under a combined Investment Advisory and Administrative Services Agreement ("Agreement") with the Trust, Brown Brothers Harriman & Co. ("BBH") provides investment advice, portfolio management and administrative services to the Fund. BBH receives a combined fee from the Fund for investment advisory and administrative services calculated daily and paid monthly at an annual rate equivalent to 0.25% on the first $1,000,000,000 of the Fund's average daily net assets and 0.20% of the Fund's average daily net assets in excess of $1,000,000,000. Prior to June 12, 2007, under a separate agreement that covered only investment advisory fees, BBH received a fee from the Fund calculated daily and paid monthly. This fee was allocated to the Fund from the Portfolio in which the Fund invested and was calculated at an annual rate of 0.15% of the Portfolio's average daily net assets. Brown Brothers Harriman Trust Company, LLC ("BBHTC") the Fund's administrator, under a separate agreement that covered only administrative services, received a fee from the Fund calculated daily and paid monthly at an annual rate equivalent to 0.10% of the Fund's average daily net assets. BBH has a sub-administration services agreement with Federated Services Company ("FSC") for which FSC receives compensation paid by BBH. For the six months ended December 31, 2007, the Fund incurred $2,553,346 for investment advisory and administrative services. Shareholder Servicing Fees. The Trust has a shareholder servicing agreement with Brown Brothers Harriman ("BBH") for which BBH receives a fee from the Fund calculated daily and paid monthly at an annual rate of 0.25% of the Regular shares' average daily net assets. For the six months ended December 31, 2007, the Fund incurred $1,630,569 for shareholder servicing services. Custody and Accounting Fees. BBH acts as a custodian and receives a custody and accounting fee from the Fund calculated daily and paid monthly. The custody fee is a transaction based fee with an annual minimum of $20,000, and the accounting fee is calculated at 0.01% per annum on the first $1 billion of net assets and 0.005% per annum on all net assets over $1 billion. For the six months ended December 31, 2007, the Fund incurred $167,585 for custody and accounting services. In the event that the Fund is overdrawn, under the custody agreement with BBH, BBH will make overnight loans to the Fund to cover overdrafts. Pursuant to their agreement the Fund will be charged interest based on LIBOR on the day of the overdraft plus one percent. The total interest paid by the Fund for the six months ended December 31, 2007 was $12,577. Board of Trustees' Fees. Each Trustee receives an annual fee as well as reimbursement for reasonable out-of-pocket expenses from the Fund. For the six months ended December 31, 2007, the Fund incurred $90,877 for Trustees' fees. FINANCIAL STATEMENT DECEMBER 31, 2007 15 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2007 (unaudited) 3. Capital Stock. The Trust is permitted to issue an unlimited number of Regular Shares and Institutional Shares of capital stock, at no par value. Transactions in shares of capital stock were as follows: Shares ---------------------------------------- For the six months ended For the December 31, 2007 year ended (unaudited) June 30, 2007 ----------------- ------------------ Regular Shares Capital stock sold ............................. 874,416,155 2,210,338,409 Capital stock issued in connection with reinvestment of dividends ................... 11,054,171 31,844,261 Capital stock redeemed ......................... (666,967,931) (2,575,617,884) ------------ -------------- Net increase (decrease) ........................ 218,502,395 (333,435,214) ============ ============== Shares ---------------------------------------- For the period from For the six January 26, 2007 months ended (commencement of December 31, 2007 operations) to (unaudited) June 30, 2007 ----------------- ------------------- Institutional Shares Capital stock sold ............................. 735,284,954 1,722,103,964 Capital stock issued in connection with reinvestment of dividends ................... 9,211,127 7,805,316 Capital stock redeemed ......................... (812,917,788) (590,221,623) ------------ ------------ Net increase (decrease) ........................ (68,421,707) 1,139,687,657 ============ ============ 16 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES December 31, 2007 (unaudited) EXAMPLE As a shareholder of BBH Money Market Fund (the "Fund"), you may incur two types of costs: (1) transaction costs on purchase payments, reinvested dividends, or other distributions; and exchange fees; and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007). ACTUAL EXPENSES The first line of the table below provides information about actual account values and actual expenses. You may use information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during the period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid during the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. FINANCIAL STATEMENT DECEMBER 31, 2007 17 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES (continued) December 31, 2007 (unaudited) Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Expenses Paid Beginning Ending During Period Account Value Account Value July 1, 2007 July 1, 2007 December 31, 2007 to December 31, 2007(1) ------------- ----------------- ----------------------- Regular Shares Actual .................. $1,000 $1,023.60 $2.59 Hypothetical(2) ......... $1,000 $1,022.57 $2.59 Expenses Paid Beginning Ending During Period Account Value Account Value July 1, 2007 July 1, 2007 December 31, 2007 to December 31, 2007(1) ------------- ----------------- ----------------------- Institutional Shares Actual .................. $1,000 $1,024.80 $1.32 Hypothetical(2) ......... $1,000 $1,023.83 $1.32 - ---------- (1) Expenses are equal to the Fund's annualized expense ratio of 0.51% and 0.26% for Regular and Institutional shares, respectively multiplied by 184/366 (to reflect the one half-year period). (2) Assumes a return of 5% before expenses. For the purpose of the calculation, the applicable annualized expense ratio for each class of shares is subtracted from the assumed return before expenses. 18 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION December 31, 2007 (unaudited) Approval of Investment Advisory/Administrative Services Agreement At a meeting held on December 11, 2006, the Board of Trustees (the "Board") of the Trust unanimously approved a new Combined Investment Advisory/Administrative Services Agreement ("Combined Agreement"). The Board determined that the terms of the Combined Agreement will be substantially identical to those of the current advisory and administration agreements of the Funds, noting that the most significant difference in the Combined Agreement is a single fee for both advisory and administrative services. The following is a summary of the factors the Board took into consideration in making its determination to approve the new Combined Agreement. Nature, Extent and Quality of Services Provided by Brown Brothers Harriman & Co. ("BBH") The Board noted that, under the Combined Agreement in respect of each Fund, BBH, subject to the supervision of the Board, will be responsible for providing a continuous investment program and making purchases and sales of portfolio securities consistent with the Funds' investment objective and policies. Under the Combined Agreement, BBH also provides administrative services to each Fund. The Board considered the scope and quality of services to be provided by BBH under the Combined Agreement and noted that the scope of services provided had expanded over time, primarily, as a result of regulatory developments. The Board noted that, for example, BBH is responsible for maintaining and monitoring its own and, to varying degrees, the Funds' compliance program, and these compliance programs have recently been refined and enhanced in light of new regulatory requirements. The Board considered the quality of the investment research and administrative capabilities of BBH and the other resources it has dedicated to performing services for the Funds. The Board concluded that, overall, they were satisfied with the nature, extent and quality of services expected to be provided to each of the Funds under the Combined Agreement. Costs of Services Provided and Profitability to BBH At the request of the Board, BBH provided information concerning the profitability of BBH's current investment company advisory and other fees. The Board also reviewed BBH's profitability data for each Fund, which also included the effect of revenue generated by the shareholder servicing, administration, custody and other fees paid by the Fund. The Board discussed the difficulty of making comparisons of profitability because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the service provider, the types of funds it manages and administers, its business mix, numerous assumptions regarding allocations and the entity's capital structure and cost of capital. In considering profitability information, the Board considered the effect of fall-out benefits on BBH's expenses, as well as the "revenue sharing" arrangements BBH has entered into with certain entities that distribute shares of the Funds. The Board focused on profitability of BBH's relationships with the Funds before taxes and distribution expenses. The Board concluded that it was satisfied that BBH's level of profitability from its relationship with each Fund was not excessive. FINANCIAL STATEMENT DECEMBER 31, 2007 19 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) Fall-Out Benefits The Board considered that BBH does not allocate the Funds' portfolio transactions for third party research, although it did benefit from proprietary research received from brokers that execute the Funds' purchases and sales of securities. The Board recognized that the aggregate amount of commissions generated by Fund transactions was unlikely to result in the Funds receiving from full service broker dealers substantial discounts on commission rates. The Board received and reviewed information concerning BBH's policies with respect to allocating portfolio brokerage. The Board also considered that BBH receives shareholder servicing fees from certain funds, and is the Funds' administrator, custodian and securities lending agent. The Board noted that BBH retained no portion of the 12b-1 fees paid by any Fund that operated with a Rule 12b-1 plan. The Board recognized that BBH's profitability would be somewhat lower if it did not receive proprietary research for commissions or, if it did not receive the other benefits described above. The Board recognized that most Fund shareholders were also BBH clients, and that substantial assets are invested in the Funds as a result of an overall investment management program for the shareholder. The Board noted that the Funds also derive reputational and other benefits from their association with BBH and their use of the BBH name, which is licensed to the Funds by BBH. Thus, the Board did not believe that BBH revenues associated with its clients should be fairly regarded as "fallout" benefit from the Funds. Economies of Scale The Board noted that the Funds' combined fee schedules, other than the fee schedule for BBH Money Market Fund, do not contain breakpoints. As a result, if assets increase, the fee rates would not be reduced for these Funds on the incremental assets. With respect to the BBH Money Market Fund, the breakpoint will be reviewed every three (3) years by the Board, and may be adjusted upwards to take into account the effects of inflation or such other basis as may be appropriate, subject to the approval of shareholders to the extent required by the 1940 Act. There may be other economies of scale because many expenses did not rise (and fall) proportionally to increases (and decreases) in total net assets. The Board noted that BBH had priced its services in recognition of the fact that it was largely its own clients who were shareholders and, accordingly, sought to assure that the cost of these services and total expenses for each Fund were fair and reasonable. In addition, the Board noted that over the years BBH had supported certain Funds through fee waivers and expense reimbursements. Based on information they had been provided over many years, the Board observed that in the mutual fund industry as a whole, as well as among funds similar to the Funds, there appeared to be no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. In light of the Funds' current size and expense structure, the Board concluded that it was unnecessary at this time to consider breakpoints with respect to the Funds, other than for the BBH Money Market Fund. 20 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) Investment Results The Board considered the investment results of each of the Funds as compared to investment companies with its peers and with one or more selected securities indices. In addition to the information received by the Board for the meeting held on December 11, 2006, the Board received detailed performance information for each Fund at each regular Board meeting during the year. At the meeting held on December 11, 2006, the Board reviewed information showing performance of each Fund compared to its peers over the prior 1-, 3-, and 5- year periods and compared the performance information to one or more securities indices over comparable periods. Combined Fee Rate The Board considered the fee rate to be paid by each Fund to BBH. The Board recognized that it is difficult to make comparisons of these fee rates, and the combined advisory and administration fees, because there are variations in the services that are included in the fees paid by other funds. The Board considered the depth and range of services provided under the Combined Agreement. For example, in addition to a continuous investment program, BBH provides, among other things, officers (including the Funds' Chief Compliance Officer and officers to provide required certifications) and administrative services, such as shareholder communications, and tax compliance, with the attendant costs and exposure to liability. BBH also coordinates the provision of services to the Funds by nonaffiliated service providers. The following factors specific to BBH Money Market Fund also were noted and considered by the Board in deciding to approve the Combined Agreement: The Board reviewed information showing performance of the BBH Money Market Fund compared to other funds in the iMoneyNet (1st Tier Retail) and (1st Tier Institutional). The comparative information showed that the BBH Money Market Fund had outperformed or performed in line with the averages over all relevant periods. The Board also viewed with favor that the total expense ratio was substantially lower than the averages in these categories. The Board also noted that the BBH Money Market Fund had maintained a stable net asset value of one dollar at all times. Taking into account these comparisons and the other factors considered, the Board concluded that the BBH Money Market Fund's investment results over time and expense ratios had been satisfactory. Conflicts of Interest As a general matter, certain conflicts of interest may arise in connection with a portfolio manager's management of a Fund's investments, on the one hand, and the investments of other accounts for which the portfolio manager is responsible, on the other. For example, it is possible that the various accounts managed could have different investment strategies that, at times, might conflict with one another to the possible detriment of the Fund. Alternatively, to the extent that the same investment opportunities might be FINANCIAL STATEMENT DECEMBER 31, 2007 21 BBH MONEY MARKET FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) desirable for more than one account, possible conflicts could arise in determining how to allocate them. Other potential conflicts might include conflicts created by specific portfolio manager compensation arrangements, and conflicts relating to selection of brokers or dealers to execute Fund portfolio trades and/or specific uses of commissions from Fund portfolio trades (for example, research, or "soft dollars"). BBH has adopted and implemented policies and procedures, including brokerage and trade allocation policies and procedures, which it believes address the conflicts associated with managing multiple accounts for multiple clients. In addition, BBH monitors a variety of areas, including compliance with account investment guidelines, the inclusion only of securities approved for purchase by the BBH's Fixed Income Credit Committee, and compliance with the BBH's Code of Ethics. Finally, BBH has structured the portfolio managers' compensation in a manner, and the Funds have adopted policies and procedures, reasonably designed to safeguard a Fund from being negatively affected as a result of any such potential conflicts. 22 INVESTMENT ADVISER AND ADMINISTRATOR BROWN BROTHERS HARRIMAN 140 BROADWAY NEW YORK, NY 10005 DISTRIBUTOR EDGEWOOD SERVICES, INC. 5800 CORPORATE DRIVE PITTSBURGH, PA 15237-7000 SHAREHOLDER SERVICING AGENT BROWN BROTHERS HARRIMAN 140 BROADWAY NEW YORK, NY 10005 (800) 625-5759 To obtain information or make shareholder inquiries: By telephone: Call 1-800-575-1265 By E-mail send your request to: bbhfunds@bbh.com On the internet: www.bbhfunds.com This report is submitted for the general information of shareholders and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of the Fund. Such offering is made only by the prospectus, which includes details as to offering price and other material information. The BBH U.S. Money Market Portfolio files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." Information on Form N-Q is available without charge and upon request by calling the Funds at the toll-free number listed above. A text only version can be viewed online or downloaded from the SEC's website at http://www.sec.gov; and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC (call 1-800-SEC-0330 for information on the operation of the Public Reference Room). You may also access this information from the BBH website at BBH.com by clicking on "BBH Mutual Funds" and selecting "Online Documents/Holdings Information." A copy of the Fund's Proxy Voting Policy is available upon request by calling the toll-free number listed above. A text-only version of the policy can be viewed online or downloaded from the SEC at www.sec.gov. BROWN [LOGO] BROTHERS HARRIMAN BROWN [LOGO] BROTHERS HARRIMAN Semi-Annual Report DECEMBER 31, 2007 BBH TAX-EXEMPT MONEY FUND BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO ALLOCATION December 31, 2007 (unaudited) BREAKDOWN BY BOND TYPE Percent of U.S. $ Value Net Assets ------------ ---------- Certificate of Participation....................... $ 2,100,000 0.6% Education.......................................... 89,872,000 23.7 General Obligations................................ 105,924,197 27.9 Health Care........................................ 36,870,000 9.7 Industrial......................................... 19,480,000 5.1 Miscellaneous...................................... 25,617,205 6.7 Special Tax........................................ 2,505,000 0.7 Transportation..................................... 28,590,258 7.5 Utilities.......................................... 13,505,011 3.6 Water/Sewer........................................ 14,151,151 3.7 Commercial Paper................................... 36,900,000 9.7 Other Assets in Excess of Liabilities.............. 4,276,113 1.1 ------------ ----- Net Assets......................................... $379,790,935 100.0% ============ ===== TOP FIVE HOLDINGS BY STATE Percent of U.S. $ Value Net Assets ------------ ---------- Pennsylvania....................................... $ 37,375,000 9.8% New York........................................... 33,902,017 8.9 North Carolina..................................... 33,609,936 8.9 Maryland........................................... 31,497,501 8.3 Texas ............................................ 17,667,160 4.7 Other States....................................... 221,463,208 58.3 Other Assets in Excess of Liabilities.............. 4,276,113 1.1 ------------ ----- Net Assets......................................... $379,790,935 100.0% ============ ===== All data as of December 31, 2007. The Fund's breakdown by bond type and top five holdings by state are expressed as a percentage of net assets and may vary over time. The accompanying notes are an integral part of these financial statements. 2 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ MUNICIPAL BONDS (89.2%) CERTIFICATE OF PARTICIPATION (0.6%) $ 2,100,000 Denver, Colorado, City & County(1) ........... 01/02/08 3.400% $ 2,100,000 ------------ EDUCATION(1) (23.7%) 1,017,000 Chicago Board of Education ................... 01/02/08 3.750 1,017,000 6,175,000 Colorado Springs, Colorado ................... 01/02/08 3.700 6,175,000 2,000,000 Connecticut State Health & Educational Facilities Authority............ 01/02/08 3.300 2,000,000 900,000 Connecticut State Health & Educational Facilities Authority............ 01/02/08 3.550 900,000 1,400,000 Curators University of Missouri .............. 01/02/08 3.750 1,400,000 14,650,000 Indiana Health & Educational Facilities Financing Authority ............. 01/02/08 3.440 14,650,000 1,275,000 Indiana University ........................... 01/02/08 3.400 1,275,000 7,215,000 Maryland State Health & Higher Education Facilities Authority ............. 01/03/08 3.380 7,215,000 3,205,000 Missouri State Health & Educational Facilities Authority ....................... 01/02/08 3.500 3,205,000 1,300,000 Missouri State Health & Educational Facilities Authority ....................... 01/02/08 3.750 1,300,000 3,050,000 Missouri State Health & Educational Facilities Authority ....................... 01/02/08 3.750 3,050,000 1,500,000 New Hampshire Health & Education Facilities Authority ....................... 01/02/08 3.380 1,500,000 5,300,000 New Hampshire Health & Education Facilities Authority ....................... 01/02/08 3.380 5,300,000 4,650,000 New Hampshire Health & Education Facilities Authority ....................... 01/02/08 3.750 4,650,000 5,325,000 New Hampshire Health & Education Facilities Authority ....................... 01/02/08 3.750 5,325,000 1,300,000 Ohio State Higher Educational Facilities Revenue ......................... 01/02/08 3.380 1,300,000 3,260,000 Ohio State University ........................ 01/03/08 3.210 3,260,000 1,000,000 Ohio State University ........................ 01/04/08 3.150 1,000,000 The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 3 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ MUNICIPAL BONDS (continued) EDUCATION (continued) $ 3,000,000 Pennsylvania State Higher Educational Facilities Authority ....................... 01/03/08 3.420% $ 3,000,000 1,400,000 Pennsylvania State University ................ 01/03/08 3.390 1,400,000 1,990,000 University of Michigan ....................... 01/02/08 3.750 1,990,000 2,600,000 University of Missouri ....................... 01/02/08 3.750 2,600,000 1,000,000 University of Pittsburgh ..................... 01/02/08 3.300 1,000,000 1,250,000 University of Pittsburgh ..................... 01/02/08 3.300 1,250,000 6,350,000 University of Pittsburgh ..................... 01/02/08 3.300 6,350,000 555,000 University of Pittsburgh ..................... 01/02/08 3.400 555,000 4,655,000 University of Pittsburgh ..................... 01/03/08 3.380 4,655,000 400,000 University of Pittsburgh ..................... 01/03/08 3.400 400,000 1,050,000 University of Virginia ....................... 01/02/08 3.400 1,050,000 1,000,000 Utah State Board of Regents .................. 01/02/08 3.750 1,000,000 100,000 Virginia Commonwealth University ............. 01/02/08 3.800 100,000 ------------ Total Education ........................................... 89,872,000 ------------ GENERAL OBLIGATIONS (27.9%) 1,000,000 Boston, Massachusetts ........................ 01/01/08 4.000 1,000,000 1,850,000 Charlotte, North Carolina .................... 07/01/08 4.250 1,861,760 3,000,000 Dallas, Texas, Independent School District ............................ 02/15/08 5.000 3,005,609 725,000 Delaware State ............................... 04/01/08 5.250 729,147 1,800,000 Delaware State ............................... 07/01/08 5.000 1,811,836 605,000 Denton, Texas, Independent School District(1) ......................... 01/03/08 3.430 605,000 2,385,000 District of Columbia(1) ...................... 01/02/08 3.450 2,385,000 1,000,000 Fairfax County, Virginia ..................... 06/01/08 4.250 1,002,006 6,000,000 Fairfax County, Virginia ..................... 06/01/08 5.000 6,052,607 606,000 Georgia State(1) ............................. 01/03/08 3.320 606,000 4,000,000 Georgia State ................................ 03/01/08 5.000 4,008,912 2,000,000 Houston, Texas ............................... 03/01/08 5.000 2,006,551 1,050,000 Las Vegas Valley, Nevada, Water District ............................. 06/01/08 5.000 1,055,487 The accompanying notes are an integral part of these financial statements. 4 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ MUNICIPAL BONDS (continued) GENERAL OBLIGATIONS (continued) $ 5,000,000 Maryland State ............................... 02/01/08 5.000% $ 5,005,530 2,560,000 Maryland State ............................... 08/01/08 5.000 2,579,548 2,500,000 Massachusetts State(1) ....................... 01/02/08 3.460 2,500,000 600,000 Mecklenburg County, North Carolina(1) ........ 01/02/08 3.470 600,000 630,000 Mecklenburg County, North Carolina(1) ........ 01/02/08 3.470 630,000 3,140,000 Mecklenburg County, North Carolina(1) ........ 01/03/08 3.480 3,140,000 1,000,000 Metropolitan Council, Minneapolis ............ 03/01/08 5.000 1,002,212 620,000 Minneapolis, Minnesota(1) .................... 01/03/08 3.270 620,000 2,000,000 Minneapolis, Minnesota(1) .................... 01/03/08 3.270 2,000,000 8,900,000 Minneapolis, Minnesota(1) .................... 01/03/08 3.270 8,900,000 1,300,000 Minneapolis, Minnesota ....................... 03/01/08 5.000 1,302,674 4,850,000 Montgomery County, Maryland(1) ............... 01/02/08 3.700 4,850,000 2,975,000 Montgomery County, Maryland .................. 05/01/08 5.000 2,989,244 1,835,000 Montgomery County, Maryland .................. 07/01/08 5.000 1,849,426 1,260,000 Nevada State ................................. 05/15/10 5.250 1,270,297 700,000 New York, New York(1) ........................ 01/02/08 3.370 700,000 400,000 New York, New York(1) ........................ 01/02/08 3.570 400,000 1,150,000 North Carolina State ......................... 03/01/08 5.000 1,152,365 3,000,000 North Carolina State ......................... 03/01/08 5.000 3,009,316 800,000 North Carolina State ......................... 04/01/08 4.000 800,630 2,500,000 North Carolina State ......................... 06/01/08 5.000 2,513,605 2,000,000 Oregon State(1) .............................. 01/02/08 3.700 2,000,000 2,800,000 Oregon State(1) .............................. 01/02/08 3.700 2,800,000 1,000,000 Richardson, Texas, Independent School District(1) ......................... 01/03/08 3.420 1,000,000 1,050,000 South Carolina State ......................... 08/01/08 5.000 1,060,028 4,500,000 Utah State ................................... 07/01/08 4.000 4,510,759 5,000,000 Utah State ................................... 07/01/08 4.000 5,006,025 950,000 Vermont State ................................ 03/01/08 5.000 952,122 4,385,000 Virginia Beach, Virginia ..................... 03/01/08 5.250 4,397,933 2,690,000 Wake County, North Carolina(1) ............... 01/03/08 3.420 2,690,000 500,000 Wake County, North Carolina .................. 02/01/08 5.000 500,592 3,000,000 Wake County, North Carolina .................. 04/01/08 5.000 3,011,668 The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 5 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ MUNICIPAL BONDS (continued) GENERAL OBLIGATIONS (continued) $ 4,030,000 Washington Suburban Sanitation District ................................... 06/01/08 5.000% $ 4,050,308 ------------ Total General Obligations ................................. 105,924,197 ------------ HEALTH CARE(1) (9.7%) 2,000,000 New York State Dormitory Authority Revenue .................................... 01/03/08 3.400 2,000,000 8,000,000 New York State Dormitory Authority Revenue .................................... 01/03/08 3.420 8,000,000 2,530,000 Oklahoma State Industries Authority, Hospital Revenue ........................... 01/02/08 3.750 2,530,000 2,600,000 Philadelphia, Pennsylvania, Hospitals & Higher Education Facilities Authority ...... 01/02/08 3.750 2,600,000 1,800,000 Philadelphia, Pennsylvania, Hospitals & Higher Education Facilities Authority ...... 01/02/08 3.750 1,800,000 4,180,000 Royal Oak, Michigan, Hospital Finance Authority .......................... 01/02/08 3.730 4,180,000 7,760,000 Royal Oak, Michigan, Hospital Finance Authority .......................... 01/02/08 3.750 7,760,000 8,000,000 University of North Carolina Hospital Revenue ........................... 01/02/08 3.740 8,000,000 ------------ Total Health Care ......................................... 36,870,000 ------------ INDUSTRIAL(1) (5.1%) 1,000,000 California Pollution Control Financing Authority ........................ 01/02/08 3.420 1,000,000 2,000,000 Columbia, Alabama, Pollution Control Revenue .................................... 01/02/08 3.750 2,000,000 600,000 Delaware County, Pennsylvania, Industrial Development Authority............ 01/02/08 3.450 600,000 3,580,000 Delaware County, Pennsylvania, Industrial Development Authority............ 01/02/08 3.750 3,580,000 2,500,000 Gulf Coast Waste Disposal Authority, Texas ...................................... 01/02/08 3.570 2,500,000 The accompanying notes are an integral part of these financial statements. 6 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ MUNICIPAL BONDS (continued) INDUSTRIAL (continued) $ 2,000,000 Harris County, Texas, Industrial Development Corporation Solid Waste Disposal Revenue ..................... 01/02/08 3.720% $ 2,000,000 2,000,000 Jackson County, Mississippi, Port Facility Revenue ...................... 01/02/08 3.740 2,000,000 2,000,000 Kemmerer, Wyoming, Pollution Control Revenue .................................... 01/02/08 3.570 2,000,000 2,000,000 Lincoln County, Wyoming, Pollution Control Revenue ............................ 01/02/08 3.570 2,000,000 1,800,000 Sweetwater County, Wyoming, Pollution Control Revenue .................. 01/02/08 3.750 1,800,000 ------------ Total Industrial .......................................... 19,480,000 ------------ MISCELLANEOUS (6.7%) 3,125,000 Alaska State Housing Finance Corp. Revenue(1) ................................. 04/04/08 3.490 3,125,000 1,300,000 Colorado Housing & Finance Authority(1)....... 01/02/08 3.550 1,300,000 1,405,000 Indiana State Finance Authority Revenue .................................... 02/01/08 5.000 1,406,560 2,605,000 Monmouth County, New Jersey, Improvement Authority Revenue .............. 10/01/08 4.500 2,624,938 1,000,000 New York, New York, City Transitional Finance Authority(1) ....................... 01/02/08 3.400 1,000,000 1,200,000 New York, New York, City Transitional Finance Authority(1) ....................... 01/02/08 3.400 1,200,000 2,470,000 New York, New York, City Transitional Finance Authority(1) ....................... 01/02/08 3.400 2,470,000 1,000,000 New York, New York, City Transitional Finance Authority .......................... 11/01/08 5.000 1,015,596 1,000,000 New York, New York, City Transitional Finance Authority .......................... 11/01/08 5.000 1,016,421 4,500,000 New York State Local Government Assistance Corp.(1) ........................ 01/02/08 3.330 4,500,000 The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 7 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ MUNICIPAL BONDS (continued) MISCELLANEOUS (continued) $ 900,000 New York State Local Government Assistance Corp.(1) ........................ 01/02/08 3.350% $ 900,000 1,200,000 Oklahoma State Capitol Improvement Authority(1) ............................... 01/02/08 3.750 1,200,000 3,040,000 Palm Beach County, Florida, Public Improvement Revenue ........................ 11/01/08 4.000 3,058,690 800,000 Will County, Illinois, Exempt Facilities Revenue(1) ..................... 01/02/08 3.850 800,000 ------------ Total Miscellaneous ....................................... 25,617,205 ------------ SPECIAL TAX (0.7%) 1,300,000 Connecticut State Special Tax Obligation Revenue(1) ...................... 01/02/08 3.430 1,300,000 1,205,000 Connecticut State Special Tax Obligation Revenue(1) ...................... 01/02/08 3.550 1,205,000 ------------ Total Special Tax ......................................... 2,505,000 ------------ TRANSPORTATION (7.5%) 5,000,000 Alabama State Federal Highway Finance Authority .......................... 03/01/08 5.000 5,011,242 2,000,000 Georgia State Road & Tollway Authority Revenue .......................... 03/01/08 5.000 2,005,263 2,000,000 Joliet, Illinois, Regional Port District(1)... 01/02/08 3.570 2,000,000 2,000,000 Maryland State Department of Transportation ............................. 05/01/08 5.000 2,008,753 3,200,000 Metropolitan Transportation Authority, New York, Revenue(1) ....................... 01/03/08 3.350 3,200,000 2,365,000 Pennsylvania Turnpike Commission(1)........... 01/02/08 3.670 2,365,000 12,000,000 Pennsylvania Turnpike Commission(1)........... 01/03/08 3.390 12,000,000 ------------ Total Transportation ...................................... 28,590,258 ------------ The accompanying notes are an integral part of these financial statements. 8 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ MUNICIPAL BONDS (continued) UTILITIES (3.6%) $ 2,250,000 Houston, Texas, Utility System Revenue(1) ................................. 01/02/08 3.690% $ 2,250,000 1,760,000 Jacksonville, Florida, Electric Authority Revenue(1) ....................... 01/02/08 3.450 1,760,011 1,500,000 Long Island Power Authority New York, Electric System(1) ......................... 01/02/08 3.400 1,500,000 3,600,000 Municipal Electric Authority of Georgia(1) ................................. 01/02/08 3.400 3,600,000 2,000,000 New York State Energy Research & Development Authority(1) ................... 01/02/08 3.390 2,000,000 1,095,000 Tacoma, Washington, Electric System Revenue .................................... 01/01/08 4.000 1,095,000 1,300,000 Washington State Public Power Supply System(1) ........................... 01/02/08 3.400 1,300,000 ------------ Total Utilities ........................................... 13,505,011 ------------ WATER/SEWER (3.7%) 1,300,000 Boston, Massachusetts, Water & Sewer Commission(1) ........................ 01/03/08 3.400 1,300,000 1,800,000 California State Department of Water Resources(1) ......................... 01/02/08 3.560 1,800,000 1,000,000 Charlotte, North Carolina, Water & Sewer Revenue(1) ........................... 01/03/08 3.480 1,000,000 1,000,000 Cobb County, Georgia, Water & Sewer Revenue .............................. 07/01/08 5.000 1,010,339 3,200,000 Durham, North Carolina, Water & Sewer Revenue(1) ........................... 01/02/08 3.450 3,200,000 1,000,000 Fairfax County, Virginia, Water Authority Revenue .......................... 04/01/08 4.000 1,000,812 900,000 Massachusetts State Water Resources Authority(1) ..................... 01/02/08 3.380 900,000 1,390,000 Massachusetts State Water Resources Authority(1) ..................... 01/02/08 3.450 1,390,000 The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 9 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS (continued) December 31, 2007 (unaudited) Principal Maturity Interest Amount Date Rate Value - ----------- -------- -------- ------------ MUNICIPAL BONDS (continued) WATER/SEWER (continued) $ 1,550,000 Massachusetts State Water Resources Authority(1) ..................... 01/02/08 3.450% $ 1,550,000 1,000,000 Ohio State Solid Waste Revenue(1) ............ 01/02/08 3.850 1,000,000 ------------ Total Water/Sewer ......................................... 14,151,151 ------------ Total Municipal Bonds ..................................... 338,614,822 ------------ COMMERCIAL PAPER (9.7%) 1,500,000 Board of Government, University of North Carolina ............................. 02/06/08 3.280 1,500,000 1,800,000 Board of Regents of the Texas A&M University ................................. 02/07/08 3.400 1,800,000 10,000,000 City & County of Honolulu, Hawaii ............ 01/03/08 3.330 10,000,000 1,800,000 King County, Washington ...................... 02/07/08 3.200 1,800,000 5,000,000 Maryland State Health & Higher Education Facilities Authority ............. 01/08/08 3.300 5,000,000 3,000,000 Massachusetts State Health & Educational Facilities Authority............ 01/07/08 2.930 3,000,000 2,000,000 Massachusetts State Health & Educational Facilities Authority............ 02/05/08 3.330 2,000,000 3,300,000 Massachusetts Water Resources Authority .................................. 01/17/08 3.350 3,300,000 4,000,000 New York City Municipal Water Finance Authority .......................... 02/15/08 3.400 4,000,000 2,000,000 Private College & University Authority ....... 02/06/08 3.280 2,000,000 2,500,000 Texas Public Finance Authority ............... 02/07/08 3.520 2,500,000 ------------ Total Commercial Paper .................................... 36,900,000 ------------ TOTAL INVESTMENTS, AT AMORTIZED COST....................................... 98.9% $375,514,822 OTHER ASSETS IN EXCESS OF LIABILITIES...................................... 1.1 4,276,113 ----- ------------ NET ASSETS................................................................. 100.0% $379,790,935 ===== ============ - ---------- (1) Variable rate instrument. Interest rates change on specific dates (such as coupon or interest payment date). The yield shown represents the December 31, 2007 coupon or interest rate. The accompanying notes are an integral part of these financial statements. 10 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES December 31, 2007 (unaudited) ASSETS: Investments, at amortized cost ............................... $375,514,822 Cash ........................................................ 2,636,889 Interest receivable and other assets ........................ 2,117,978 ------------ Total Assets .............................................. 380,269,689 ------------ LIABILITIES: Payables for: Shareholder servicing fees ................................ 161,473 Investment advisory fees .................................. 98,366 Administrative fees ....................................... 65,577 Professional fees ......................................... 48,679 Dividends declared ........................................ 26,253 Custody and accounting fees ............................... 3,374 Board of Trustees' fees ................................... 1,000 Accrued expenses and other liabilities ...................... 74,032 ------------ Total Liabilities ......................................... 478,754 ------------ NET ASSETS, for 379,784,906 fund shares outstanding ............ $379,790,935 ============ Net Assets Consist of: Paid in capital ............................................. $379,790,935 ------------ Net Assets ..................................................... $379,790,935 ============ NET ASSET VALUE AND OFFERING PRICE PER SHARE ................... $1.00 ===== The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 11 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the six months ended December 31, 2007 (unaudited) NET INVESTMENT INCOME: Income: Investment income ........................................... $6,921,913 ---------- Expenses: Shareholder servicing fees .................................. 489,137 Investment advisory fees .................................... 293,482 Administrative fees ......................................... 195,655 State registration fees ..................................... 104,539 Custody and accounting fees ................................. 37,645 Professional fees ........................................... 28,823 Board of Trustees' fees ..................................... 18,539 Miscellaneous expenses ...................................... 22,665 ---------- Total Expenses ............................................ 1,190,485 Expense offset arrangement ................................ (14,300) ---------- Net Expenses .............................................. 1,176,185 ---------- Net Investment Income ............................................ $5,745,728 ========== The accompanying notes are an integral part of these financial statements. 12 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS For the six months ended For the December 31, 2007 year ended (unaudited) June 30, 2007 ----------------- ------------- INCREASE (DECREASE) IN NET ASSETS: From Operations: Net investment income ...................................... $ 5,745,728 $ 12,564,686 Dividends declared from net investment income ................ (5,742,827) (12,562,787) ------------- ------------- Net increase in net assets from operations ................. 2,901 1,899 ------------- ------------- From Fund Share (Principal) Transactions at Net Asset Value of $1.00 per share: Fund shares sold ......................................... 271,751,426 353,300,401 Fund shares issued in reinvestment of dividends .......... 3,214,038 6,378,787 Fund shares repurchased .................................. (223,413,768) (524,604,107) ------------- ------------- Net increase (decrease) in net assets resulting from fund share transactions ......................... 51,551,696 (164,924,919) ------------- ------------- Total increase (decrease) in net assets ................ 51,554,597 (164,923,020) NET ASSETS: Beginning of year ............................................ 328,236,338 493,159,358 ------------- ------------- End of period ................................................ $ 379,790,935 $ 328,236,338 ============= ============= The accompanying notes are an integral part of these financial statements. FINANCIAL STATEMENT DECEMBER 31, 2007 13 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Selected per share data and ratios for a share outstanding throughout each period For the six months ended December 31, For the years ended June 30, 2007 ----------------------------------------------------------- (unaudited) 2007 2006 2005 2004 2003 ------------- ------ ------ ------ ------ ------ Net asset value, beginning of year............... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Income from investment operations: Net investment income........... 0.01 0.03 0.02 0.01 0.00(1) 0.01 Dividends to shareholders from net investment income........... (0.01) (0.03) (0.02) (0.01) (0.00)(1) (0.01) ----- ----- ----- ----- ----- ----- Net asset value, end of period .... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ----- ----- ----- ----- ----- ----- Total return....................... 1.49% 3.03% 2.31% 1.15% 0.42% 0.72% ===== ===== ===== ===== ===== ===== Ratios/Supplemental data: Net assets, end of period (in millions)................. $380 $328 $493 $438 $453 $465 Net expenses paid by Fund ...... 0.60%(2) 0.58% 0.56% 0.56% 0.55% 0.56% Expense offset arrangement ..... 0.01%(2) 0.01% 0.00%(3) 0.00%(3) 0.00%(3) 0.01% ----- ----- ----- ----- ----- ----- Total expenses................ 0.61%(2) 0.59% 0.56% 0.56% 0.55% 0.57% ===== ===== ===== ===== ===== ===== Ratio of net investment income to average net assets........................ 2.94%(2) 2.98% 2.31% 1.15% 0.42% 0.72% - ---------- (1) Less than $0.01 per share. (2) Annualized. (3) Less than 0.01%. The accompanying notes are an integral part of these financial statements. 14 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS December 31, 2007 (unaudited) 1. Organization and Significant Accounting Policies. BBH Tax Exempt Money Fund (the "Fund") is a separate, diversified series of BBH Trust (the "Trust"), which is registered under the Investment Company Act of 1940, as amended. The Trust is an open-end management investment company organized as a Massachusetts business trust on June 7, 1983 and re-organized as a Delaware statutory trust on June 12, 2007. The Fund commenced operations on February 22, 1999. The Declaration of Trust permits the Trustees to create an unlimited number of series, each of which may issue a separate class of shares. The Trustees have authorized the issuance of an unlimited number of shares of the Fund without a par value. At December 31, 2007, there were seven series of the Trust. The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements and are based, in part, on the following accounting policies. Actual results could differ from those estimates. A. Valuation of Investments. The Fund values its investments at amortized cost, which approximates market value. The amortized cost method values a security at its cost at the time of purchase and thereafter assumes a constant amortization to maturity of any discount or premium. The Fund's use of amortized cost is in compliance with Rule 2a-7 of the Investment Company Act of 1940. B. Investment Transactions and Income. Investment transactions are accounted for on the trade date. Realized gains and losses, if any, from investment transactions are determined on the basis of identified cost. The Fund invest primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligation may be affected by economic developments in a specific state or municipality. Interest income consists of interest accrued and discount earned (including both original issue and market discount) and premium amortization on the investments of the Fund, accrued ratably to the date of maturity. C. Federal Income Taxes. Each series of the Trust is treated as a separate entity for federal income tax purposes. It is the Fund's policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Accordingly, no federal income tax provision is required. At December 31, 2007, the cost of investments for federal income tax purposes was equal to the amortized cost of investments for financial statement purposes. D. Dividends and Distributions to Shareholders. Dividends from net investment income are declared daily and paid monthly to shareholders. The Fund declared dividends in the amount of $5,742,827 during the six months ended December 31, 2007. The Fund declared dividends in the amounts of $12,562,787 and $11,095,940 for the years ended June 30, 2007 and June 30, 2006, respectively. The tax character of the dividends declared in the six months and years ended was 100% tax exempt income. FINANCIAL STATEMENT DECEMBER 31, 2007 15 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2007 (unaudited) E. Accounting Developments. During the current year, the Fund adopted FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The adoption of FIN 48 had no impact on the operations of the Fund for the period ended December 31, 2007. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the implication of SFAS 157. At this time its impact on the Fund's financial statements has not yet been determined. 2. Transactions with Affiliates. Investment Advisory and Administrative Fees. Effective June 12, 2007, under a combined Investment Advisory and Administrative Services Agreement ("Agreement") with the Trust, Brown Brothers Harriman & Co. ("BBH") provides investment advice, portfolio management and administrative services to the Fund. BBH receives a combined fee from the Fund for investment advisory and administrative services calculated daily and paid monthly at an annual rate equivalent to 0.25% of the Fund's daily net assets. Prior to June 12, 2007, under a separate agreement that covered only investment advisory fees, BBH received a fee from the Fund calculated daily and paid monthly at an annual rate of 0.15% of the Fund's average daily net assets and Brown Brothers Harriman Trust Company, LLC ("BBHTC") the Fund's administrator, under a separate agreement that covered only administrative services, received a fee from the Fund calculated daily and paid monthly at an annual rate equivalent to 0.10% of the Fund's average daily net assets. BBH has a sub-administration services agreement with Federated Services Company ("FSC") for which FSC receives compensation paid by BBH. For the six months ended December 31, 2007, the Fund incurred $489,137 for investment advisory and administrative services. Shareholder Servicing Fees. The Trust has a shareholder servicing agreement with BBH for which BBH receives a fee from the Fund calculated daily and paid monthly at an annual rate of 0.25% of the Fund's average daily net assets. For the six months ended December 31, 2007, the Fund incurred $489,137 for shareholder servicing services. Custody and Accounting Fees. BBH acts as a custodian and receives a custody and accounting fee from the Fund calculated daily and paid monthly. The custody fee is a transaction based fee with an annual minimum of $20,000, and the accounting fee is calculated at 0.01% per annum on the first 16 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2007 (unaudited) $1 billion of net assets and 0.005% per annum on all net assets over $1 billion. For the six months ended December 31, 2007, the Fund incurred $37,645 for custody and accounting services. These fees were reduced by $14,300 as a result of an expense offset arrangement with the Fund's custodian. In the event that the Fund is overdrawn, under the custody agreement with BBH, BBH will make overnight loans to the Fund to cover overdrafts. Pursuant to their agreement the Fund will be charged interest based on LIBOR on the day of overdraft plus one percent. The total interest paid by the Fund for the six months ended December 31, 2007 was $2,032. Board of Trustees' Fees. Each Trustee receives an annual fee as well as reimbursement for reasonable out-of-pocket expenses from the Fund. For the six months ended December 31, 2007, the Fund incurred $18,539 for Trustees' fees. FINANCIAL STATEMENT DECEMBER 31, 2007 17 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES December 31, 2007 (unaudited) EXAMPLE As a shareholder of BBH Tax Exempt Money Fund (the "Fund"), you may incur two types of costs: (1) transaction costs on purchase payments, reinvested dividends, or other distributions; and exchange fees; and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007). ACTUAL EXPENSES The first line of the table below provides information about actual account values and actual expenses. You may use information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during the period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid during the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. 18 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES (continued) December 31, 2007 (unaudited) Expenses Paid Beginning Ending During Period Account Value Account Value July 1, 2007 to July 1, 2007 December 31, 2007 December 31, 2007(1) ------------- ----------------- -------------------- Actual.................. $1,000 $1,014.90 $3.04 Hypothetical(2)......... $1,000 $1,022.12 $3.05 - ---------- (1) Expenses are equal to the Fund's annualized expense ratio of 0.60%, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). (2) Assumes a return of 5% before expenses. For the purpose of the calculation, the applicable annualized expense ratio is subtracted from the assumed return before expenses. FINANCIAL STATEMENT DECEMBER 31, 2007 19 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION December 31, 2007 (unaudited) Approval of Investment Advisory/Administrative Services Agreement At a meeting held on December 11, 2006, the Board of Trustees (the "Board") of the Trust unanimously approved a new Combined Investment Advisory/Administrative Services Agreement ("Combined Agreement"). The Board determined that the terms of the Combined Agreement will be substantially identical to those of the current advisory and administration agreements of the Funds, noting that the most significant difference in the Combined Agreement is a single fee for both advisory and administrative services. The following is a summary of the factors the Board took into consideration in making its determination to approve the new Combined Agreement. Nature, Extent and Quality of Services Provided by Brown Brothers Harriman & Co. ("BBH") The Board noted that, under the Combined Agreement in respect of each Fund, BBH, subject to the supervision of the Board, will be responsible for providing a continuous investment program and making purchases and sales of portfolio securities consistent with the Funds' investment objective and policies. Under the Combined Agreement, BBH also provides administrative services to each Fund. The Board considered the scope and quality of services to be provided by BBH under the Combined Agreement and noted that the scope of services provided had expanded over time, primarily, as a result of regulatory developments. The Board noted that, for example, BBH is responsible for maintaining and monitoring its own and, to varying degrees, the Funds' compliance program, and these compliance programs have recently been refined and enhanced in light of new regulatory requirements. The Board considered the quality of the investment research and administrative capabilities of BBH and the other resources it has dedicated to performing services for the Funds. The Board concluded that, overall, they were satisfied with the nature, extent and quality of services expected to be provided to each of the Funds under the Combined Agreement. Costs of Services Provided and Profitability to BBH At the request of the Board, BBH provided information concerning the profitability of BBH's current investment company advisory and other fees. The Board also reviewed BBH's profitability data for each Fund, which also included the effect of revenue generated by the shareholder servicing, administration, custody and other fees paid by the Fund. The Board discussed the difficulty of making comparisons of profitability because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the service provider, the types of funds it manages and administers, its business mix, numerous assumptions regarding allocations and the entity's capital structure and cost of capital. In considering profitability information, the Board considered the effect of fall-out benefits on BBH's expenses, as well as the "revenue sharing" arrangements BBH has entered into with certain entities that distribute shares of the Funds. The Board focused on profitability of BBH's relationships with the Funds before taxes and distribution expenses. The Board concluded that it was satisfied that BBH's level of profitability from its relationship with each Fund was not excessive. 20 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) Fall-Out Benefits The Board considered that BBH does not allocate the Funds' portfolio transactions for third party research, although it did benefit from proprietary research received from brokers that execute the Funds' purchases and sales of securities. The Board recognized that the aggregate amount of commissions generated by Fund transactions was unlikely to result in the Funds receiving from full service broker dealers substantial discounts on commission rates. The Board received and reviewed information concerning BBH's policies with respect to allocating portfolio brokerage. The Board also considered that BBH receives shareholder servicing fees from certain funds, and is the Funds' administrator, custodian and securities lending agent. The Board noted that BBH retained no portion of the 12b-1 fees paid by any Fund that operated with a Rule 12b-1 plan. The Board recognized that BBH's profitability would be somewhat lower if it did not receive proprietary research for commissions or, if it did not receive the other benefits described above. The Board recognized that most Fund shareholders were also BBH clients, and that substantial assets are invested in the Funds as a result of an overall investment management program for the shareholder. The Board noted that the Funds also derive reputational and other benefits from their association with BBH and their use of the BBH name, which is licensed to the Funds by BBH. Thus, the Board did not believe that BBH revenues associated with its clients should be fairly regarded as "fallout" benefit from the Funds. Economies of Scale The Board noted that the Funds' combined fee schedules, other than the fee schedule for BBH Money Market Fund, do not contain breakpoints. As a result, if assets increase, the fee rates would not be reduced for these Funds on the incremental assets. With respect to the BBH Money Market Fund, the breakpoint will be reviewed every three (3) years by the Board, and may be adjusted upwards to take into account the effects of inflation or such other basis as may be appropriate, subject to the approval of shareholders to the extent required by the 1940 Act. There may be other economies of scale because many expenses did not rise (and fall) proportionally to increases (and decreases) in total net assets. The Board noted that BBH had priced its services in recognition of the fact that it was largely its own clients who were shareholders and, accordingly, sought to assure that the cost of these services and total expenses for each Fund were fair and reasonable. In addition, the Board noted that over the years BBH had supported certain Funds through fee waivers and expense reimbursements. Based on information they had been provided over many years, the Board observed that in the mutual fund industry as a whole, as well as among funds similar to the Funds, there FINANCIAL STATEMENT DECEMBER 31, 2007 21 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) appeared to be no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. In light of the Funds' current size and expense structure, the Board concluded that it was unnecessary at this time to consider breakpoints with respect to the Funds, other than for the BBH Money Market Fund. Investment Results The Board considered the investment results of each of the Funds as compared to investment companies with its peers and with one or more selected securities indices. In addition to the information received by the Board for the meeting held on December 11, 2006, the Board received detailed performance information for each Fund at each regular Board meeting during the year. At the meeting held on December 11, 2006, the Board reviewed information showing performance of each Fund compared to its peers over the prior 1-, 3-, and 5- year periods and compared the performance information to one or more securities indices over comparable periods. Combined Fee Rate The Board considered the fee rate to be paid by each Fund to BBH. The Board recognized that it is difficult to make comparisons of these fee rates, and the combined advisory and administration fees, because there are variations in the services that are included in the fees paid by other funds. The Board considered the depth and range of services provided under the Combined Agreement. For example, in addition to a continuous investment program, BBH provides, among other things, officers (including the Funds' Chief Compliance Officer and officers to provide required certifications) and administrative services, such as shareholder communications, and tax compliance, with the attendant costs and exposure to liability. BBH also coordinates the provision of services to the Funds by nonaffiliated service providers. The following factors specific to BBH Tax Exempt Money Fund also were noted and considered by the Board in deciding to approve the Combined Agreement: The Board reviewed information showing performance of the BBH Tax Exempt Money Fund compared to iMoneyNet (Tax Free Retail). The Fund outperformed or performed in line with the average over all relevant periods. The Board also viewed with favor that the BBH Tax Exempt Money Fund's portfolio of investments had an overall high quality while the BBH Tax Exempt Money Fund's total expense ratio was lower that the iMoneyNet Average. The Board also noted that the BBH Tax Exempt Money Fund had successfully maintained a stable net asset value of one dollar at all times. Taking into account these comparisons and the other factors considered, the Board concluded that the BBH Tax Exempt Money Fund's investment results over time and its total expense ratio had been satisfactory. 22 BBH TAX EXEMPT MONEY FUND - -------------------------------------------------------------------------------- DISCLOSURE OF ADVISOR SELECTION (continued) December 31, 2007 (unaudited) Conflicts of Interest As a general matter, certain conflicts of interest may arise in connection with a portfolio manager's management of a Fund's investments, on the one hand, and the investments of other accounts for which the portfolio manager is responsible, on the other. For example, it is possible that the various accounts managed could have different investment strategies that, at times, might conflict with one another to the possible detriment of the Fund. Alternatively, to the extent that the same investment opportunities might be desirable for more than one account, possible conflicts could arise in determining how to allocate them. Other potential conflicts might include conflicts created by specific portfolio manager compensation arrangements, and conflicts relating to selection of brokers or dealers to execute Fund portfolio trades and/or specific uses of commissions from Fund portfolio trades (for example, research, or "soft dollars"). BBH has adopted and implemented policies and procedures, including brokerage and trade allocation policies and procedures, which it believes address the conflicts associated with managing multiple accounts for multiple clients. In addition, BBH monitors a variety of areas, including compliance with account investment guidelines, the inclusion only of securities approved for purchase by the BBH's Fixed Income Credit Committee, and compliance with the BBH's Code of Ethics. Finally, BBH has structured the portfolio managers' compensation in a manner, and the Funds have adopted policies and procedures, reasonably designed to safeguard a Fund from being negatively affected as a result of any such potential conflicts. FINANCIAL STATEMENT DECEMBER 31, 2007 23 INVESTMENT ADVISER AND ADMINISTRATOR BROWN BROTHERS HARRIMAN 140 BROADWAY NEW YORK, NY 10005 DISTRIBUTOR EDGEWOOD SERVICES, INC. 5800 CORPORATE DRIVE PITTSBURGH, PA 15237-7000 SHAREHOLDER SERVICING AGENT BROWN BROTHERS HARRIMAN 140 BROADWAY NEW YORK, NY 10005 (800) 625-5759 To obtain information or make shareholder inquiries: By telephone: Call 1-800-575-1265 By E-mail send your request to: bbhfunds@bbh.com On the internet: www.bbhfunds.com This report is submitted for the general information of shareholders and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale or a solicitation of an offer to buy shares of the Fund. Such offering is made only by the prospectus, which includes details as to offering price and other material information. The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." Information on Form N-Q is available without charge and upon request by calling the Funds at the toll-free number listed above. A text only version can be viewed online or downloaded from the SEC's website at http://www.sec.gov; and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC (call 1-800-SEC-0330 for information on the operation of the Public Reference Room). You may also access this information from the BBH website at BBH.com by clicking on "BBH Mutual Funds" and selecting "Online Documents/Holdings Information." A copy of the Fund's Proxy Voting Policy is available upon request by calling the toll-free number listed above. A text-only version of the policy can be viewed online or downloaded from the SEC at www.sec.gov. BROWN [LOGO] BROTHERS HARRIMAN ITEM 2. CODE OF ETHICS. (a) The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. (b)	No answer required. (c)	Not applicable. (d)	Not applicable. (e)	Not applicable. (f) (1) A copy of the code of ethics referenced in Item 2(a) of this Form N-CSR is available and can be mailed, free of charge, to anyone by calling (800) 575-1265. (2) Not applicable. (3) Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a)(1) The Registrant's Board of Trustees has designated two members of the audit committee as financial experts. (2) The following Trustees have been designated as audit committee financial experts by the Board of Trustees who are "independent" for purposes of this Item 3 of Form N-CSR: audit committee members Arthur D. Miltenberger and David P. Feldman are the designated audit committee financial experts. (3) Not applicable. (b) No answer required. (c) No answer required. (d) No answer required. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. NOT APPLICABLE - SEMI-ANNUAL REPORT ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. (a) Not applicable. (b) Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11. CONTROLS AND PROCEDURES. (a) Based upon their evaluation of the Registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the Registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no significant changes in the Registrant's internal controls or in other factors that occurred during the second fiscal quarter of the period covered by this report that has materially affected or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the Registrant intends to satisfy the Item 2 requirements through filing of an exhibit: A copy of the code of ethics is available and can be mailed, free of charge, to anyone by calling (800) 575-1265. (b) A separate certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto. [If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference: Attached hereto.][The submission of Section 906 certifications has been proposed by the SEC, but has not yet been finalized. The SEC has encouraged issuers to submit Section 906 certifications as an exhibit to Form N-CSR until the final rule has been adopted. Please see Proposed Rule: Certification of Disclosure in Certain Exchange Act Reports, Release No. 33-8212 (March 21, 2003)]. EXHIBIT 12(a) (2) SECTION 302 CERTIFICATION OF PRINCIPLE EXECUTIVE OFFICER. I, John A. Nielsen, certify that: 1. I have reviewed this report on Form N-CSR of BBH Trust on behalf of: BBH U.S. Treasury Money Fund, BBH Money Market Fund and BBH Tax Exempt Money Fund ("Registrant"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows)of the Registrant as of, and for, the periods presented in this report; 4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: a.) designed such disclosure controls and procedures, 	 or caused such disclosure controls and procedures to be 	 designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b.) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c.) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d.) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and 5. The Registrant's other certifying officer and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): a.) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and report financial information; and b.) any fraud, whether or not material, that involves management 	 or other employees who have a significant role in the Registrant's internal control over financial reporting. DATE: 03/07/08 =============== /s/ John A. Nielsen ===================== John A. Nielsen President - Principal Executive Officer EXHIBIT 12(a) (2) SECTION 302 CERTIFICATION OF PRINCIPLE FINANCIAL OFFICER. I, Charles H. Schreiber, certify that: 1. I have reviewed this report on Form N-CSR of BBH Trust on behalf of: BBH U.S. Treasury Money Fund, BBH Money Market Fund and BBH Tax Exempt Money Fund ("Registrant"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report; 4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: a.) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b.) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c.) evaluated the effectiveness of the Registrant's disclosure 	 controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d.) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and 5. The Registrant's other certifying officer and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): a.) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and report financial information; and b.) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. Date: 03/07/08 ================== /s/ Charles S. Schreiber ========================== Charles H. Schreiber Treasurer - Principal Financial Officer SECTION 906 CERTIFICATION This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. (section) 1350, and accompanies the report on Form N-CSR for the period ended December 31, 2007 of the BBH Trust (the "Registrant"). Pursuant to 18 U.S.C.ss. 1350, the undersigned officers of the Registrant, hereby certify, to the best of our knowledge, that the Registrant's Report on Form N-CSR for the period ended December 31, 2007 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Dated:03/07/08 ================== /s/ John A. Nielsen ===================== John A. Nielsen Title: President, Principal Executive Officer Dated:03/07/08 =================== /s/ Charles H. Schreiber ========================= Charles H. Schreiber Treasurer - Principal Financial Officer This certification is being furnished solely pursuant to 18 U.S.C.ss. 1350 and is not being filed as part of the Report or as a separate disclosure document. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) 		BBH TRUST --------------------- By (Signature and Title)* /s/ John A. Nielsen ---------------------- John A. Nielsen, President (Principal Executive Officer) Date: Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Charles H. Schreiber 	 ------------------- Charles H. Schreiber, Treasurer (Principal Financial Officer) Date: Print name and title of each signing officer under his or her signature.