The U.S. Small-Cap ESG Strategy is an ESG-focused small-cap core investment with low tracking error and high active share. Investment approach Applied research that goes beyond negative screening. Because we seek to holistically understand each investment's fundamental profile, we evaluate every company's environmental, social, and governance (ESG) attributes at a level deeper than negative screening. A dedicated research analyst subjects every name in our investment pipeline to multiple ESG analyses. Through this, we attempt to mitigate risk and assemble a portfolio that does not own controversial businesses. Our process. From the universe of securities covered by our global equity research team and owned by our other investment strategies, we apply a multi-stage ESG process and apply screens designed to deliver a portfolio of our highest conviction securities with favorable ESG profiles. Seeking to isolate factor and idiosyncratic risks, as well as achieve high active share and low tracking error, we build a portfolio of typically 70-90 securities. In managing this portfolio, we strive for low turnover, to minimize unintended risk and maintain diversification in the portfolio. Core Attributes: Active stock research. Enhanced screening. Low tracking error. High active share. Cost-effective. 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.