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 OBJECTIVES 1. SUPERIOR RISK-ADJUSTED RETURNS 2. BUSINESSES WITH STRONG COMPETITIVE ADVANTAGES 3. SUSTAINABILITY INVESTMENT SELECTION 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 Vehicles Available: SMA and Mutual Fund INSIGHTS Important of Resilience in Portfolio Construction Read more Sustainable Sovereigns: Integrating ESG Analysis into Government Debt Research Read more The views expressed are those of the author and 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 mentioned. It should not be assumed that investments in such securities 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. ESG considerations that are material will vary by investment style, sector/industry, market trends and client objectives. Ours strategies seek to identify companies that we believe may have desirable ESG outcomes, but investors may differ in their views of what constitutes positive or negative ESG outcomes. As a result, our strategies may invest in companies that do not reflect the beliefs and values of any particular investor. Our strategies may also invest in companies that would otherwise be screened out of other ESG oriented portfolios. Security selection will be impacted by the combined focus on ESG assessments and forecasts of return and risk. Our strategies intend to invest in companies with measurable ESG outcomes, as determined by Brown Advisory, and seek to screen out particular companies and industries. Brown Advisory relies on third parties to provide data and screening tools. There is no assurance that this information will be accurate or complete or that it will properly exclude all applicable securities. Investments selected using these tools may perform differently than as forecasted due to the factors incorporated into the screening process, changes from historical trends, and issues in the construction and implementation of the screens (including, but not limited to, software issues and other technological issues). There is no guarantee that Brown Advisory’s use of these tools will result in effective investment decisions.