United States
Equities Fixed Income External Managers Private Equity and Real Estate Sustainable Investing

Equities

We follow a philosophy that low-turnover, concentrated portfolios derived from sound bottom-up fundamental research provide an opportunity for attractive performance results over time. We have a culture and firm equity ownership structure that help us attract and retain professionals who share those beliefs, and we follow a repeatable investment process that helps us stay true to our philosophy.

Brown Advisory Equity Strategies

Fixed Income

We follow a philosophy that fixed income strategies built from a foundation of stability coupled with fundamental credit research can seek to generate alpha and control risk. We have a culture and firm equity ownership structure that attract and retain professionals who share those beliefs, and we follow a repeatable investment process that helps us stay true to our philosophy.

Brown Advisory Fixed Income Strategies

External Managers

Investment Solutions Group

The Investment Solutions Group is an investment-management team within Brown Advisory that specializes in asset allocation, manager selection, hedge funds and other alternative investment strategies. Dedicated to open-architecture solutions, our team has established a strong track record of identifying high-quality, third-party investment managers across the hedge fund, long-only and private equity universes. We leverage this expertise to help clients assemble portfolios that we believe best fit their needs and goals, offering clients a range of solutions from complete portfolio management to fulfillment of specific hedge-fund and alternative-asset mandates.

Private Equity and Real Estate

Private Equity and Real Estate

Brown Advisory has incorporated private equity and real estate investments in client portfolios since our founding. Today, we can provide that exposure in three distinct ways.

Feeder Funds and Multimanager Funds
We introduce clients to investment opportunities in early- and late-stage venture capital and buyout funds, as well as select real estate funds. We also construct these feeder funds into multimanager funds through our Private Equity Partners (PEP) and Real Estate Partners (REP) vehicles to make private equity investing as easy as possible for our clients.

Customized Private Equity Portfolios
For most clients, private equity is one component of a balanced portfolio that we manage. Other clients, however, come to us specifically for custom-built private equity and real estate portfolios.

Sustainable Investing

Sustainable Investing Strategies

  • Multi-Manager Strategies
  • For clients seeking an open-architecture solution, we have access to several of the premier sustainable managers in the industry - all vetted by internal research.
  • Private Equity
  • Our private equity team is focused on evaluating the growing universe of private impact investments to identify standout opportunities that target various issues of particular concern to our clients. To date, we have placed assets in investments targeting a variety of impact themes such as community impact, microfinance, education technology, sustainable real estate, water initiatives and others.*
  • *Many alternative investments by regulation may only be sold to Accredited Investors (institutions with at least $5 million in assets) or Qualified Purchasers (institutions with at least $25 million in investments).

Customized Portfolios

This diverse assortment of solutions will meet many clients’ sustainability objectives; however, we understand the continued evolution of this space and seek to be able to react quickly to client needs.

For clients with unique missions, value-aligned investing programs, or who simply wish to ensure that they do not own certain controversial companies or have access to certain industries, we offer the following customized options:

Additional Screening: To the extent we have reliable data and can build rules into our compliance systems, we can add specific screens to a separate account to restrict companies (e.g. oil and gas providers) or industries (e.g. tobacco or weaponry).

Customized and Thematic Portfolios: Within a separate account, we can work together to solve for a sustainability need. From a universe of securities researched from both the bottom-up and for their ESG profile, we can assemble a custom portfolio of securities designed to meet many specific sustainable goals or outcomes.

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.

 

 

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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.

Learn More

 
 

Strategy Resources

 

Click here to see all Brown Advisory investment strategy documents.

 

Please read our composite disclosure and other important firm disclosures.

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

More Information About Investing


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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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