United States
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.

We construct balanced portfolios for individuals, families, endowments, foundations, nonprofits, institutions, consultants, financial intermediaries and other investment professionals depending on their unique needs. We can be 100% open architecture, using third-party managers only, or we can put together a mix of internal and external strategies, whatever is in the client's best interest.

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.

We construct balanced portfolios for private clients, nonprofits and institutions depending on the needs of the client. We can be 100% open architecture, using third-party managers only, or we can put together a mix of internal and external strategies, whatever is in the client's best interest.

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.

Endowments & Foundations

Your mission is our mission.

For more than 20 years, Brown Advisory has partnered with endowments and foundations to help them fulfill their fiduciary responsibilities, realize ambitious financial goals and achieve their mission-related objectives.

Investment officers and investment committees at nonprofits face big challenges today—complex capital markets, tough regulatory oversight, high donor expectations and, in the coming years, lower expected market returns. We work with many nonprofit institutions, large and small, to help them overcome these challenges.

WE ARE EXPERIENCED INVESTMENT ADVISORS TO ENDOWMENTS AND FOUNDATIONS

We leverage decades of experience managing investments for a wide range of institutions to help our endowment and foundation clients.

Since our founding, we have served as an investment manager for endowments and foundations; as of Dec. 31, 2017, we managed approximately $6 billion in assets for our nonprofit clients.*

We seek to help nonprofits shoulder their fiduciary burden. To do so, we serve clients in a number of ways, from fully discretionary relationships to situations where we act in a more consultative role. We partner with clients to help them navigate the challenges of complex capital markets, and help them develop investment policies that seek to address the intersecting concerns of the board and other stakeholders.

We are of one mind with our clients regarding nonprofit service and the challenges that nonprofits face. We seek out colleagues who feel a natural call to serve, and our people serve on the boards and investment committees of hundreds of nonprofits around the world. We believe this perspective helps us to build deep partnerships with our nonprofit clients.

WE FOCUS ON STRATEGIC ADVICE TO HELP NONPROFITS PURSUE AMBITIOUS GOALS

We use the term strategic advice to describe our role in helping our clients solve their most pressing organizational challenges. Our aim is to provide holistic advice to clients, so we can broadly help them advance their nonprofit missions. We counsel our clients on many issues outside of traditional portfolio management, and work with them on topics ranging from municipal advisory services to charitable program development.

Our client teams partner with our in-house Strategic Advisory Group, to pinpoint each of our clients’ specific challenges and to develop customized solutions and action plans to address those challenges. In recent years, we have helped clients address a broad range of issues, including:

  1. Advice on governance
  2. Guidance on legal compliance, including:

    • Advice on fiduciary duties and responsibilities

    • Noninvestment risk management

  3. Tax compliance and tax reporting
  4. Philanthropic advisory services, including advice on:

    • Complex grant making

    • Fundraising and donor engagement

    • Acceptance of illiquid gifts

    • Planned giving

  5. Matters related to land acquisition opportunities
  6. Mission-related and impact investing

Impact Investing: Helping Nonprofits Align Their Missions and Investments

For many years, we have worked with endowments and foundations to help them explore impact investment options and broadly pursue mission-related investment goals.

Traditionally, most nonprofits invested purely for financial results, then spent or granted funds each year to advance the organizational mission. Today, many nonprofits want greater synergy between their missions and their investments. They want to use a larger percentage of their invested capital to generate positive, mission-related impact.

Nonprofits each approach the question of sustainable investing from a different perspective, and with different priorities. Our goal is simply to help endowments and foundations clarify their objectives, then implement the right solutions. Thanks to recent regulatory guidance, nonprofits have improved clarity today about sustainable investing within a fiduciary context; in the case of private foundations, some of these options may satisfy their annual spending requirements.

We believe that a thoughtful, sustainable investment approach can in fact bridge the gap between investment goals and mission objectives, within a unified portfolio strategy.

*As of December 31, 2017, Brown Advisory managed $5.8 billion for our endowments and foundations practice for the following entities: Brown Advisory LLC, Brown Investment Advisory & Trust Company, Brown Advisory Securities LLC, Brown Advisory Ltd., Brown Advisory Trust Company of Delaware LLC and Brown Advisory Investment Solutions Group LLC

Why Brown Advisory?

The effectiveness of investment committees meeting their organizational goals is being challenged at every angle: market volatility, complexity of assets, costs, regulation, reporting requirements, etc. The traditional way of managing plans—through quarterly meetings and backward-looking reviews—is becoming obsolete. Investment committees must transition from a reactive model to a proactive one, in which giving up discretion can actually enhance a committee’s fiduciary oversight and obligation.

Brown Advisory has a deep heritage and years of experience working with institutions to address their investment challenges, all within well-defined risk parameters and always with the understanding that their goals are paramount and their needs come first.

 
 

OUR CULTURE:
Working as a Team

We believe that decisions are best made with input from a group and in the light of each other’s scrutiny, instead of alone and in the dark. We structure our organization and follow processes that force us to collaborate for the benefit of clients. Through the long tenures of our employees, we develop the mutual trust that allows people to speak their minds freely in pursuit of insight.

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Brigid Peterson

Endowments and Foundations Advisor