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.

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 | Closing the Gender Wealth Gap

Tory Szczawinski
May 31, 2018

The typical woman who works full time earns 79 cents for every dollar earned by a typical man. We hear this income statistic a lot. It’s disheartening, more so when you learn that the disparity is even worse along racial lines. Black women earn 63 cents for every dollar earned by white men; Hispanic women, 54 cents.

It’s good that we are talking about the gender income gap between men and women, but we are not talking enough about the equally important gender wealth gap. Panelist Elena Chávez Quezada, who founded the Closing the Women’s Wealth Gap Initiative, told us that women control 33 percent of the wealth that men do. This holds true even for women who work full time and have never married, despite the fact that those women have almost closed the gap with men who’ve never married (97 cents for every dollar). Far more disturbing: single black and Hispanic women own less than a penny for every dollar owned by white men. Older women are twice as likely to live in poverty as older men.

Meanwhile, 50 percent of college students are women; 50 percent of business owners in this country are women; 72 percent of high school valedictorians are women. Why isn’t progress on income equality leading to progress of wealth equality?

It is common knowledge that women did not have the same access to capital as men throughout U.S. history, but some of the egregious inequalities in recent history forced double and triple takes during our panel. Until 1974, women couldn’t access credit in their own name. And it wasn’t until 1988 that women were able to take out a business loan without a male relative co-sign. 1988! Of course, the painful history of racial injustice in the U.S., from slavery to Jim Crow laws to redlining, has systematically blocked both men and women of color from building wealth.

To address the gender wealth gap, the panelists say that parity starts with finding solutions to the big, tangible barriers that women in our country currently face. For example, low-income women in subsidized housing are required to pay 30 percent of their income toward their housing. This may sound reasonable, but it creates a strong adverse incentive: The more they make, the more they pay. These types of scenarios create impossible choices for low-income women—working a second job might provide a bit more income, but is less likely to enable any sort of wealth-building. Sherry Riva and her team at Compass Working Capital are addressing situations like this; within its family self-sufficiency program, Compass provides support services built around a HUD program that allows families to capture in a savings account any increase in rent triggered by an increase in income. Compass helps low-income women and families out of poverty and creates an orientation toward the future.

Other solutions are often more obvious, such as programs that offer financial coaching on budgeting, saving for a down payment on a house, saving for retirement and other aspects of financial planning. Employers can help with purposeful attention to benefit programs, such as clear retirement choices with automatic investment options, and more generous maternity and paternity leave. And government can also play a role in subtle ways—for example, policies that limit predatory student lending practices would disproportionately benefit women, who are more likely to have predatory student debt that persists even through a bankruptcy.

Access to financial education and resources affects women at all levels of wealth—the gap exists for relatively well-off women just as it does for poorer women. The fact that women haven’t had the same access to capital, business networks and mentors as their male counterparts has resulted in women-owned businesses staying small rather than scaling up to larger enterprises with the frequency that businesses owned by men have. Providing women with access to these resources, especially at critical moments, can be a huge step toward closing the gender wealth gap.

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.

AUTHOR

Tory Szczawinski

Fixed Income Investment Team

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