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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.

Investment Insights and Thoughts from Brown Advisory
Navigating Our World

NOW 2018 | Free Trade, Tariffs and Trouble

J.R. Rodrigo
May 31, 2018

SPEAKERS: The Hon. Carla A. Hills, Chair and CEO, Hills & Company; The Hon. Ron Kirk, Senior Of Counsel, Gibson, Dunn & Crutcher; Thea M. Lee, President, Economic Policy Institute; Andrew Wilson, Permanent Observer to the United Nations, International Chamber of Commerce

MODERATOR: Simon Paterson, CFA, Equity Research Analyst

 

Current news of tariffs and trade wars is the latest evidence that the ideology of free trade and globalization is under attack. This battle isn’t being fought in classrooms or among academics (most economists view free trade as broadly beneficial for the global economy), but on the front lines of social media. “Free trade supporters have lost the debate completely in… this new space,” stated Andrew Wilson during our NOW 2018 panel on trade policy.

According to Wilson, free trade proponents have a communication problem: Despite convincing arguments, they have steadily lost ground to inflammatory anti-trade rhetoric that connects emotionally on issues like jobs or security. Social media has enabled extreme views on trade to become a part of mainstream thinking.

Carla Hills, a former U.S. trade representative and chief negotiator on NAFTA, noted that many Americans don’t understand the extent to which future U.S. growth depends on international trade. “With five percent of the world’s population producing 15 percent of the world’s output, we can’t just look inward. We need the markets overseas.” The data backs her up: A recent Peterson Institute report found that freer trade helped annual U.S. GDP grow by $2.1 trillion between 1950 and 2016.

Ron Kirk had a different experience with trade and NAFTA, as mayor of Dallas in the 1990s. NAFTA helped open up new markets for local businesses, but he saw the instinctive fear that in some cases transcended logic, among many who feared their jobs would be outsourced due to NAFTA. He recalled a Dallas factory worker who had complained to him that NAFTA had led to his factory being shuttered—in reality, the worker’s job had been lost years before NAFTA was signed.

Over time, many more U.S. manufacturing jobs have been lost to technological advancements and automation than to trade. Neither the public nor the private sector adequately trained or invested in those displaced workers. Thea Lee noted that free trade policies have generally failed to proactively protect U.S. workers, and ultimately these failures have contributed to the recent populist backlash. In Lee’s view, future trade policies are set up for failure if they do not adequately address workers’ rights and important issues such as environmental protection.

While disagreeing on several points, the panelists found consensus on several key points. They agreed that the current administration’s trade moves have been poorly communicated, creating a great deal of uncertainty for U.S. businesses and major U.S. trade partners. This uncertainty could drag the economy down if it begins to affect business decisions and overall sentiment. Also, they all felt that the World Trade Organization, while not perfect, is still our best option for resolving trade disputes because it is the only mechanism we have for enforcing global trade discipline. As Kirk described the organization, it is “the best house on a bad block.”

Finally, the panel all emphasized that education and investment in U.S. workers are critical for U.S. competitiveness in the future. Many displaced workers don’t have the skills for better jobs that are now abundant in America. Hills discussed the millions of high-paying, technology-oriented jobs that are currently unfilled in the U.S. due to a lack of skilled workers. Kirk also called for better education and skill training so we can compete with China. Lee argued that advocating for workers through fair policies and education is a win-win: It would address trade issues and also serve domestic political agendas. Finally, Wilson noted that proper education and skill training would also address the communication and messaging problem for free trade supporters by replacing fear with confidence among many workers. If the U.S. can educate its working class to excel in a broader range of emerging industries, maybe it can replace fear with confidence as the dominant narrative thread when it comes to free trade. 

The views expressed are those of Brown Advisory as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. Past performance is not a guarantee of future performance and you may not get back the amount invested.

The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities or asset classes mentioned. It should not be assumed that investments in such securities or asset classes have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is intended solely for our clients and prospective clients, is for informational purposes only, and is not individually tailored for or directed to any particular client or prospective client.

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