News Summary
2nd March 2022
- Long-term, concentrated and sustainable approach to international equities seeking to deliver outperformance relative to the FTSE All-World ex-US Index over the economic cycle, focused on companies with sound ESG risk management practices and sustainable business advantages
- Strategy is managed by Priyanka Agnihotri based in the firm’s London office
- Leverages Brown Advisory’s global equity platform, established in 2015, and sustainable investing capabilities, developed in-house over more than 10 years
Brown Advisory, an independent and privately held global investment management firm that oversees more than $139.3 billion in client assets and $39.4 billion in sustainable assets, today unveils its Sustainable International Leaders strategy (the “strategy”).
The strategy seeks to invest in an actively managed, concentrated portfolio of companies outside the U.S. that Brown Advisory considers leaders in their sector or country, have sound ESG risk management practices and sustainable business advantages, and therefore, have the ability to compound returns for investors over time. The strategy aims to outperform the FTSE All-World ex-US Index over the economic cycle, while simultaneously generating positive impact on environmental and social issues.
It joins Brown Advisory’s robust line-up of global sustainable equity and fixed income strategies and funds. It is a natural addition and complement to Brown Advisory’s global equity franchise established in 2015, which includes the Global Leaders and Global Focus strategies, and its sustainable investing capabilities, developed in-house over more than 10 years.
In particular, the strategy is designed to provide an option for clients with existing exposure to U.S. equities who seek to invest in equities globally, and is available to U.S. investors as a Mutual Fund launching today (Ticker: BISLX), and also to clients globally via a separate account mandate.
The strategy invests in approximately 25 to 35 companies in developed and emerging equity markets, excluding the U.S., and with market capitalisation above $2 billion. It builds on the established investment philosophy, process and team of Global Leaders, Brown Advisory’s concentrated, global equity strategy, managed by Mick Dillon and Bertie Thomson. The strategy is guided by central convictions that are shared across Brown Advisory’s global equity franchise:
- We are long-term investors focused on a high active share, concentrated portfolio of international companies that we believe offer compelling growth and profitability potential over our approximately five-year holding period
- Investment selection is focused on identifying companies that we believe have strong competitive advantages and moats from a fundamental and sustainability perspective, have reinvestment opportunities at high returns on invested capital (ROIC), capable and rightly incentivized management teams and are undervalued over a long-term investment horizon
- Capital is allocated to the highest conviction ideas and follows a rigorous process supported by behavioural analysis. Buying, selling and sizing decisions are based on ongoing analysis of an investment’s potential and portfolio exposure to risk-factors, as well as a process designed to mitigate potential behavioural biases
Priyanka Agnihotri, who is based in Brown Advisory’s London office, is the sole portfolio manager of the strategy. She is a seasoned investment professional with over 10 years’ experience in global equity investment research roles. Priyanka joined Brown Advisory as a research analyst focused on the financial sector in 2015, and has been a member of Brown Advisory’s global equity team since its inception. Priyanka was elevated to Portfolio Manager within the team with the launch of the Sustainable International Leaders strategy.
Priyanka Agnihotri, Partner and Portfolio Manager of Brown Advisory’s Sustainable International Leaders strategy, said: “I am honoured and excited to be leading this strategy and bringing the rigorous investment philosophy and process developed over eight years to a distinct international equity portfolio. Like all our strategies, it will be managed through a long-term lens and provide exposure to high-quality, sustainable businesses outside of the U.S. I view a company’s ESG risk management and sustainable business advantages as a material component of its ability to compound returns, while generating environmental and social impact."
Mick Dillon, Partner and Portfolio Manager of Brown Advisory’s Global Leaders strategy, said: “I’m excited to see our global equity franchise continue to expand with the launch of Sustainable International Leaders. Priyanka has been a tremendous contributor to our strategies and team since the outset, and I am thrilled she is leading our efforts in the international segment of the market. I strongly believe that adding the focus on global companies ex-US will provide another perspective to our global equity team, that will ultimately strengthen all of the franchise.”