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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.

Brown Advisory Equity Strategies

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.

Brown Advisory Fixed Income Strategies

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.

Investment Insights and Thoughts from Brown Advisory
Navigating Our World

NOW 2018 | The Changing Nature of Trust

Nell Kelleher
May 31, 2018

For 18 years, Matt Harrington has been studying, analyzing and synthesizing the evolution of society’s trust in four institutions: government, business, NGOs and media.

Harrington oversees global operations for Edelman, a leading global communications marketing firm that partners with many of the world’s largest and emerging businesses and organizations. Through the Edelman Trust Barometer, a widely followed online survey with over 33,000 respondents from 28 countries, Harrington and his team gather data about trends in how trust has changed over time and how people in different countries perceive their public and private leaders.

The barometer presents its findings in a series of “readings” using a scale from 1 to 100, with 100 equating to complete trust in an institution. Broadly, groups with scores of 60–100 are referred to as “trusters,” 50–59 are “neutral” and 49 and below are “distrusters.”

In his presentation at NOW, Harrington covered three themes that emerged from the 2018 Trust Barometer survey.

The U.S. and China are a world apart: The barometer identified a major split between nations where trust is rising versus others where it is falling dramatically. The most notable example: Trust in China has risen meaningfully in the past year, while in the U.S., trust has plummeted. Over the past year, China’s trust in its public and private leadership has grown the most, while the United States’ trust has fallen. Looking specifically at trust in government, China scored an 84 in its view that government will do what is right, while the U.S. scored a 33—down quite a bit from its score of 47 just last year. China views government as its most trusted institution, while the U.S. views government as its least trusted by far.

People want truth but struggle to find it: From the decline in faith in traditional journalism to the rapid rise of less reliable sources of information, trends in media have been a source of great concern to most people around the world for years. The barometer confirmed this point: The media (broadly defined in the survey to include social media platforms) emerged as the least trusted institution globally. Harrington presented examples across the world that showed a high skepticism in the news we are reading. Seven out of 10 respondents worry about false information or fake news being used as a weapon. One particularly dramatic example: the “informed public” in the U.S. (defined via income and education criteria as well as news consumption habits) scored a 68 in overall trust in 2017, but that figure plummeted to 45 in 2018, just one year later.

A surprising revelation from the 2018 survey was that 50 percent of respondents stated that they consume news “less than weekly”—this response covered traditional consumption as well as information shared by others or pushed to respondents in a feed of any type. So many people have become suspicious of the media and upset by ever-increasing political vitriol, and we have all likely come across friends or colleagues who are choosing to disengage at various levels. However, the fact that half of all respondents have disengaged from the news media to such an extreme extent is a worrying development.

People are placing their faith in new leaders: Trust in government has dropped around the world, and respondents are looking to businesses and CEOs to take a stand and lead. Sixty-four percent of respondents want CEOs to take a lead on issues of importance, rather than waiting for governments to impose change through regulation. Recently, we have seen many examples of CEOs taking a stand on a variety of issues such as diversity, guns, equal pay, sexual harassment and other issues. The survey also suggests that people want businesses to act broadly, to engage their local communities and to build trust by activating the entire organization. (As a side note, in our equity research process, we often see these leadership characteristics emerge at companies that implement successful sustainable business strategies that ultimately drive their financial results.)

The topic of trust came up many times throughout the NOW 2018 panel discussions. The Edelman barometer and Harrington’s presentation helped all of us at the conference to expand our understanding of trust and to appreciate how it is evolving differently within different demographic groups around the world.

The views expressed are those of 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 or asset classes mentioned. It should not be assumed that investments in such securities or asset classes 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.

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