Sustainable International Leaders Strategy

Sustainable International Leaders Strategy

The Brown Advisory Sustainable International Leaders strategy is an actively managed, concentrated portfolio of international companies that we believe are and will continue to be leaders in their sector or industry; these companies have strong competitive advantages, from a fundamental and sustainability perspective, and we believe they offer compelling growth and profitability prospects.

INVESTMENT PHILOSOPHY


We believe companies with strong competitive advantages and moats from a fundamental and sustainability perspective, that have reinvestment opportunities at high returns on invested capital (ROIC), capable and rightly incentivized management teams and are undervalued over a long-term investment horizon have the ability to compound returns and generate attractive risk-adjusted excess returns throughout the economic cycle. 
 


 

MAIN AIMS

  • Superior Risk Adjusted Returns  

  • Businesses with Strong Competitive Advantages

  • Businesses with Compelling Sustainability Management 

INVESTMENT OBJECTIVES

Integrated fundamental and sustainable research, supplemented by investigative research to uncover businesses that we believe posses strong fundamental and sustainable competitive advantages, growth and profitability, and thus have the potential to compound returns over the long term.

What makes a Sustainable International Leader?

 

Franchise Quality
  • Exceptional business model
  • Attractive reinvestment opportunities
  • Sustainable Business Advantage drivers
Quantitative Measures
  • ROIC meaningfully above cost of capital
  • High incremental ROIC
  • Strong cash flow generation
Investability
  • Probability weighted expected return
  • 5+ years investment horizon
  • Absolute cash flow value — not relative value
Management Quality
  • Track record of strong capital allocation
  • Management incentives are aligned

Leveraging Brown Advisory’s Global Equity and Sustainable Investing platforms

chart: consumer stress


 

Vehicles Available: SMA and Mutual Fund


 

INSIGHTS