• Identifies companies traditionally perceived as ‘value stocks’ that exhibit durable fundamentals and are using sustainability to drive strong free cash flow
• Builds on Brown Advisory’s extensive expertise in large-cap, value-focused and sustainable investing
• Managed by Michael Poggi who has 20 years’ fundamental research experience across multiple sectors and is supported by a large and diverse team of equity and ESG specialists

London, 31st May 2023 – Brown Advisory, a global and independent investment management firm with $131.1billion in client assets*, has launched its U.S. Sustainable Value Fund (“the Fund”) under its Dublin UCITS umbrella. The Fund is governed by Article 8 of the Sustainable Finance Disclosure Regulation (SFDR). This follows a successful U.S. mutual fund launch in February for the U.S. Large-Cap Sustainable Value Strategy (“the Strategy”) managed by Michael Poggi, CFA. 

Brown Advisory believes that the vacuum of strategies at the intersection of sustainability and value has created an unmet market need: ESG research has historically avoided “value stocks” due to their exposure to complex industries. Brown Advisory’s research process makes sense of these complexities by identifying companies traditionally perceived as being ‘value stocks’ where investors can also benefit from a compelling sustainability journey. 

The Fund invests in a concentrated portfolio of companies that have durable fundamental strengths, exhibit capital discipline, with attractive valuations and that also benefit from sustainable competitive advantages. Referred to internally as Sustainable Cash Flow Advantages (SCFA), the manager believes strong ESG execution often extends the duration and lowers the volatility of cash flows. SCFA is identified through the use of a ‘3P’ investment filter, which focuses on how companies manage their People, Process and Product. The Fund aims to achieve competitive risk-adjusted returns while providing a margin of safety over a full market cycle.

The U.S. Sustainable Value Fund is naturally built on Brown Advisory’s long history of expertise in U.S. large-cap, value-focused and sustainable investing, and will join a suite of sustainable investment strategies, including the Large Cap Sustainable Growth Fund, Global Leaders Sustainable Fund and Global Sustainable Total Return Bond Fund.

Logie Fitzwilliams, Head of International Business and Global Head of Sales at Brown Advisory, said: “Brown Advisory’s fund offerings continually evolve to meet client demand. Our clients expressed a need for more sustainable large-cap value exposure in their portfolios, and we’re eager to provide them with access to a strategy that embodies Brown Advisory’s proprietary fundamental and ESG research capabilities in a market with limited offerings within this space.” 

The Fund is managed by Michael Poggi, who joined Brown Advisory as an equity analyst in 2003 and has since covered a wide range of sectors with a primary focus on value investment opportunities. He will be supported by a large and diverse team of sector specialists and ESG experts including Director of Equity ESG Research and Strategy, Katherine Kroll.

Michael Poggi, Portfolio Manager, said: “The U.S. Sustainable Value Fund is compelling because it combines Brown Advisory’s expertise in ESG research with our years of experience in U.S. large-cap and value investing. We believe that this approach enables us to uncover undervalued companies that others may overlook. By integrating our fundamental research with an ESG lens and using our extensive and diverse team of analysts, the strategy has the potential to deliver attractive returns for our investors.”

Katherine Kroll, Director of Equity ESG Research and Strategy, commented: “When assessing a company through an ESG lens, we seek to understand both its management of risks and its ability to execute on sustainable opportunities. Our Sustainable Investing philosophy is centred on a holistic view of a company, where we consider how ESG characteristics intersect with strong fundamentals to provide a competitively differentiated opportunity for investors.”

Brown Advisory considers that this Fund actively promotes, amongst other characteristics, social and/or environmental characteristics and therefore is governed by Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).

The Strategy launched initially with a Mutual Fund in March 2023, followed by the [Dublin] UCITS Fund. The strategy is also available to investors globally as a separately managed account.

Media Contacts

About Michael Poggi
Mike is the portfolio manager for the U.S. Large-Cap Sustainable Value Strategy. He joined Brown Advisory in 2003 as an equity research analyst and has covered multiple sectors and industries with a primary focus on value companies across the market cap spectrum. For the past 13 years, Mike has also been dedicated to the Small-Cap Fundamental Value strategy as an associate portfolio manager while covering the industrial, material and energy sectors.

About Katherine Kroll
Katherine is the Director of Equity ESG Research and Strategy at Brown Advisory. She is responsible for ESG integration, adoption and research across Brown Advisory’s institutional equity investment strategies. Additionally, she leads the ESG engagement strategy and supports the expansion of sustainable investment solutions at Brown Advisory. 

About Brown Advisory
Brown Advisory is an independent investment management firm committed to providing its clients with a combination of first-class investment performance, strategic advice and the highest level of service. Brown Advisory has been a private and independent firm since 1998. Today, the firm has more than 800 colleagues – each with an equity interest – serving private clients and institutions in over 40 countries from 18 offices globally and is responsible for approximately US$131.1 billion in assets for private and institutional clients and charities as of April 30, 2023. The firm’s colleague equity ownership, experienced investment professionals and client-first culture help to make a material difference in the lives of its clients. For more information, please visit: www.brownadvisory.com