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Sustainable Core Fixed Income

The Brown Advisory Sustainable Core Fixed Income strategy seeks to maximize total return by investing in fixed income sectors that demonstrate clear, tangible positive impact.

 

Inside the Strategy

  • We seek to deliver attractive risk-adjusted returns in excess of the Barclays Aggregate Bond Index by incorporating into our investment research ESG factors that we believe have a clear and tangible impact on performance.
  • We use a proprietary ESG research methodology that integrates third-party data with our own internal analysis that we believe strengthens our bottom-up fundamental research approach. This methodology aims to provide additional dimensions to our understanding of opportunities and the risks embedded in the bonds we evaluate as well as identify bonds that fund projects with a positive environmental and social impact.
  • We concentrate our team’s best ideas in a portfolio that seeks to provide alpha and manage target duration.
  • This strategy can be customized to meet a client’s risk tolerance, liquidity needs and return expectations.

Inception: 9/30/2014

Benchmark: Bloomberg Barclays US Aggregate Bond Index

Objective: Total return

Typical Duration Range: 3-7 years

Typical Credit Quality: Investment grade; up to 20% high yield

Portfolio Manager: Thomas D.D. Graff, CFA

Associate Portfolio Manager: Amy Hauter, CFA

Vehicle: Separately Managed Account, Mutual Fund

A Focus on Positive Impact

  • Historically, investors have applied ESG principles primarily to equity investments. Use of these ideas within the fixed income market has been comparatively limited. We find sustainable investing to be a particularly useful and impactful approach within fixed income portfolios.
  • Specifically with regard to impact investing, fixed income offers an essential element of clarity on the use of capital. The use of proceeds is clearly defined in any bond issue, so we are able to build a portfolio that includes securities that we know are funding projects with tangible and positive environmental or social impact.
  • Our strong relationships with many of the world’s leading green-bond issuers and underwriters helps us gain access to this new and growing market. We were early adopters of the Green Bond Principles and have been a leading participant in the green bond market in recent years.

 

Publications


Portfolio Manager Q&A
Brown Advisory has managed its Sustainable Core Fixed Income strategy for several years. Tom and Amy recently shared some insights about their approach to sustainable investing in an internal question-and-answer session about the strategy; this transcript has been lightly edited.

Read More

Income and Impact
Green bonds can be a great opportunity for clients interested in sustainable investing—if they are incorporated with clear allocation goals in mind.

Read More

 

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The information in this section of the website is for information purposes only and does not constitute a recommendation or investment advice to buy or sell securities.

Some Brown Advisory strategies may meet your needs and objectives more effectively than those referred to in this section of the website. For more information, please contact us directly. For more information on all U.S. strategies, please see the list of strategies on the right column of this page.

The contents of this section of the website have not been prepared for the benefit of investors outside the United States. They are not directed at any person or entity elsewhere, nor are they intended for distribution or to be used by any person or entity outside of the United States. In some countries, the distribution of information in this section of the website may be restricted: it is your responsibility to find out what those restrictions are and to observe them. Brown Advisory cannot be liable for a breach of such restrictions. Non-U.S. investors should consider their local regulations before considering investment.

 

Why Sustainable Investing?

Sustainable investing makes sense for a lot of reasons. Smart investors all over the world are realizing how the intersection of financial, social and environmental ideas can lead to better investment results as well as a better foundation for society.

In short, sustainable investing is a way for individuals, families and institutions to achieve a broader set of goals through their investment decisions. We seek to truly understand what you want to achieve, help you consider your options and develop a solution that helps you fulfill your specific objectives.

Strategy Resources

 

Click here to see all Brown Advisory investment strategy documents.

 

Please read our composite disclosure and other important firm disclosures.

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U.S. Institutional Content Disclosure

 

 

By viewing the documents on this page, you confirm and accept that you are an institutional client and are acting on behalf of your client as their authorized advisor or are seeking information as a representative of an institution and that you have read and understood the terms on which the information is being provided.

The information in this section of the website is for information purposes only and does not constitute a recommendation or investment advice to buy or sell securities.

Some Brown Advisory strategies may meet your needs and objectives more effectively than those referred to in this section of the website. For more information, please contact us directly. For more information on all U.S. strategies, please see the list of strategies on the right column of this page.

The contents of this section of the website have not been prepared for the benefit of investors outside the United States. They are not directed at any person or entity elsewhere, nor are they intended for distribution or to be used by any person or entity outside of the United States. In some countries, the distribution of information in this section of the website may be restricted: it is your responsibility to find out what those restrictions are and to observe them. Brown Advisory cannot be liable for a breach of such restrictions. Non-U.S. investors should consider their local regulations before considering investment.

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