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Brown Advisory launches Frankfurt office as strong performance of sustainability focused funds drives inflows from the DACH region

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14th February 2022
 
  • Significant growth in assets from clients based in German-speaking Europe, more than 75% in 2021
  • Elisa Wagnitz relocates from London to lead Frankfurt office as Head of DACH Region

Brown Advisory, an independent and privately held global investment management firm which oversees more than £109 billion (US$146 billion) in client assets, has opened a new office in Frankfurt, Germany. It follows meaningful inflows from clients based in Germany, Austria and Switzerland (DACH) driven by strong investment performance and demand for the firm’s sustainability focused strategies.

Elisa Wagnitz, Head of DACH Region for Brown Advisory, is responsible for business development and client relationships across Germany, Austria and Switzerland, and has relocated to Frankfurt to lead the 15th Brown Advisory office. The move signals Brown Advisory’s dedication to local representation and expertise, including native German-speaking colleagues, to provide clients with the highest level of service.

In 2021, Brown Advisory saw an increase in assets from the DACH region of more than 75% following very strong demand for its UCITS fund range. This includes the U.S. Sustainable Growth Fund, Global Leaders Fund and Global Leaders Sustainable Fund, which are all classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

More recently, the U.S. Sustainable Growth Fund and Global Leaders Sustainable Fund have also been awarded the FNG label 2022. Both meet the quality standard for sustainable investments in German speaking countries developed by Forum Nachhaltige Geldanlagen e. V. (FNG; SIF of Germany, Austria, Liechtenstein and Switzerland).

Brown Advisory also hired three new global sustainable fixed income portfolio managers last year, who recently launched their first UCITS fund, which is also classified as Article 8. The new team are a natural extension of, and fully integrated with, the firm’s existing U.S. sustainable fixed income team, focused on developing Brown Advisory’s sustainable investment philosophy on a global level, and integrating ESG research and the careful examination of the intended use of bonds’ proceeds with fundamental fixed income research. The strategy invests in a broad range of liquid fixed income instruments, including conventional and inflation-linked government bonds, securitised and corporate bonds, in both developed and emerging markets, as well as using active currency exposure to deliver returns. As such it will provide differentiated exposure for investors beyond only labelled (‘green’ or ‘social’) bonds.

Logie Fitzwilliams, Head of International Business and Global Head of Sales at Brown Advisory, said: “Our international business continues to expand and the new Frankfurt-based office shows our full commitment to the growing client base in the DACH region. We’ve seen strong inflows from local investors who are eager to access the benefits of Brown Advisory’s concentrated, active and sustainable equity strategies, and our newly established presence will help us better serve existing clients in these important markets.”

Elisa Wagnitz, Head of DACH Region at Brown Advisory, said: “Brown Advisory offers an attractive range of strategies that can add real value for clients seeking meaningful returns over the long term. Our rigorous commitment to fundamental research coupled with more than a decade of experience in sustainable investing and ESG research means we’re particularly well-positioned to fulfil demand for values-based investing, with a variety of UCITS funds meeting the Article 8 designation. We’re excited to further strengthen our dedication to clients in this region who share our thoughtful investment philosophy.”

Brown Advisory’s international business manages assets of approximately £15 billion (US$20 billion) for individuals, families, charities, institutions and financial intermediaries in the U.K., Europe and Asia.
 

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Brown Advisory launches Global Sustainable Total Return Bond strategy

News Summary

1st February 2022
 
  • Global, sustainable and dynamic approach to fixed income seeking to deliver attractive long-term returns while producing positive environmental and social impact
  • Will leverage and expand Brown Advisory’s substantial experience in U.S. fixed income and successful proprietary ESG framework to a global opportunity set
  • UCITS fund – Brown Advisory Global Sustainable Total Return Bond Fund (GBP) – launches with £75 million in assets from seed investors

Brown Advisory, an independent and privately held global investment management firm that oversees more than US$146 billion in client assets, today announces the launch of its Global Sustainable Total Return Bond strategy (“the strategy”).

The strategy takes a global, sustainable and dynamic approach to fixed income, seeking to offer investors access to an attractive stream of income and risk-adjusted returns while simultaneously generating a positive impact on global sustainability issues. It aims to deliver total returns over an economic cycle and act as a complement and counterbalance to equities in an investment portfolio.

This strategy is a natural expansion and complement to Brown Advisory’s long-standing U.S. sustainable fixed income platform, leveraging Brown Advisory’s 10+ years’ expertise and broad capabilities in sustainable investing.

It is launching initially with a Dublin UCITS fund, denominated in British pounds sterling. Subsequent launches will include a Dublin UCITS fund denominated in U.S. dollars and other vehicles are under consideration for the U.S. market. The strategy is also available to investors globally as a separately managed account.

The strategy invests in a broad range of liquid fixed income instruments, including conventional and inflation-linked government bonds, securitised and corporate bonds, in both developed and emerging markets, as well as using active currency exposure to deliver returns. As such it will provide differentiated exposure for investors beyond only labelled (‘green’ or ‘social’) bonds. It is guided by three central convictions:

  • Integrating ESG research with fundamental bottom-up credit analysis helps provide a deeper understanding of potential investment risks without sacrificing total returns, whilst helping direct capital to issuers contributing positively to global sustainability
  • Adding depth and breadth to the investment opportunity set (across geographies, sectors and currencies) increases the potential to generate higher income and realise diversification benefits
  • An active approach (untethered to the benchmark) can provide the flexibility to allocate risk tactically to areas of the bond market with the most attractive risk-reward profiles and customise solutions to better meet investors’ goals

The strategy is managed by Ryan Myerberg in London, and Chris Diaz and Colby Stilson in the U.S., who joined Brown Advisory last year, reuniting as a team after having previously worked together to successfully build Janus Capital’s global fixed income business. They are fully integrated into the firm’s existing fixed income team, supported by dedicated ESG analysts working alongside Brown Advisory’s fundamental credit analysts.

Logie Fitzwilliams, Head of International Business and Global Head of Sales at Brown Advisory, said: “We are excited to bring this dynamic, all-weather bond strategy to the market, designed to deliver attractive risk-adjusted returns while producing positive environmental and social impact.”

“The strategy is a complement and counterbalance to equity risk, while the ESG analysis framework seeks to identify securities that can deliver both investment performance and positive impact.”

Ryan Myerberg, Partner and Portfolio Manager, said: “The coupling of growing sustainability risks and low rates in developed markets that have been occurring for more than a decade poses an enormous challenge for private and institutional investors utilising bond allocations to generate income and to manage overall portfolio volatility.

“We believe a global, sustainable and flexible approach to fixed income can offer investors access to a more attractive stream of income and risk-adjusted returns while simultaneously generating a positive impact on global sustainability.”

The UCITS fund launches with £75 million in assets from seed investors.

Brown Advisory considers that this Fund actively promotes, amongst other characteristics, social and/or environmental characteristics and therefore is governed by Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).
 

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Two Brown Advisory UCITS Funds have been awarded the FNG Label 2022

News Summary

News Summary, December 2021

We are pleased to announce that two Brown Advisory UCITS Funds have been awarded the FNG Label 2022: U.S. Sustainable Growth and Global Leaders Sustainable

Both Funds meet the quality standard for sustainable investments in the German speaking countries developed by Forum Nachhaltige Geldanlagen e. V. (FNG; SIF of Germany, Austria, Liechtenstein and Switzerland). Certified funds pursue a professional and transparent sustainability approach. Its implementation has been verified by an independent audit of the University of Hamburg and supervised by an external committee. The two Brown Advisory Funds receive two of three possible stars for a particularly ambitious and comprehensive sustainability strategy.

The certificates for the Funds are linked here: Brown Advisory Global Leaders Sustainable Fund and Brown Advisory U.S. Sustainable Growth Fund

For more information on the FNG label please visit the FNG website which details the relevant research process and award criteria.

Finally, a summary of the FNG award ceremony can be viewed on InvestmentChannel.
 

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Karina Funk Named to Barron's List of 100 Most Influential Women in U.S. Finance

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karina funk barrons

News Summary

We are very proud of Karina Funk, CFA, Portfolio Manager and Head of Sustainable Investing, for her recognition on Barron's list of the 100 Most Influential Women in U.S. Finance for the second year in a row. We believe Karina’s contributions to our clients and colleagues through her leadership within sustainable investing and her distinguished track record co-managing the Brown Advisory Large-Cap Sustainable Growth strategy are significant, and make her well-deserving of her place on this list!

READ THE FULL ARTICLE

By clicking this link, you will be taken to barrons.com

Photo by Shawn G. Henry, Barron's.

 

 

 

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