BALTIMORE, Jan. 28, 2020 /PRNewswire/ -- Brown Advisory, an independent and privately held global investment management firm which oversees more than $80 billion in client assets, celebrates 10 years since the launch of its Large-Cap Sustainable Growth strategy ("the Strategy").
The $3.6 billion long-only, growth equity Strategy managed by Karina Funk, CFA, and David Powell, CFA, has been one of Brown Advisory's best performing strategies relative to its benchmark and category peers since inception, returning 16.6%1 over 10 years compared to 15.2% for the benchmark Russell 1000® Growth Index. The Strategy also outperformed the benchmark over the three-year and five-year periods. Assets in the Strategy more than doubled in 2019.
Tim Hathaway, Head of the U.S. Institutional Business at Brown Advisory, said: "This is a special anniversary for both our clients and our firm. On one level, it marks the 10-year anniversary of the Strategy and all of its success in delivering meaningful investment performance for our clients. On another level, we are observing a decade of our firm's intense focus on sustainability. Brown Advisory's commitment to providing equity and fixed income solutions to meet our institutional clients' evolving ESG needs has never been stronger, and we are excited to expand our sustainability offering for decades to come."
The Strategy's unique investment approach seeks to identify and invest in companies that possess "Sustainable Business Advantages" (SBA) – a proprietary term for sustainability drivers that directly benefit financial performance through the combination of: revenue growth, cost improvement and enhanced franchise value.
Some of the most attractive, durable business models in the large-cap equity universe are those with sustainable drivers at their core. For many companies, a focus on energy efficiency, health and/or wellness has driven considerable sources of revenue growth. Others have evolved their operations to reduce the use of energy, water and other resources and generated considerable cost savings. SBA also considers those companies that are able to greatly enhance their brand or franchise value by helping customers solve meaningful social and environmental challenges.
It is through the combination of these levers that companies can improve their long-term returns to shareholders. Brown Advisory believes that this approach to invest in companies with outstanding business models, compelling valuations and SBAs gives the Strategy a distinct competitive advantage and drives its outperformance.
Drawing on more than two decades of experience and expertise in sustainable investing, Brown Advisory has considerably expanded its range of strategies as it continues to develop sustainable solutions for clients across a range of asset classes. This includes both U.S. taxable and municipal fixed income strategies, as well as a growing range of equity strategies and customized solutions, which collectively leverage the firm's ESG research capabilities and address clients' values.
Karina Funk, Co-Portfolio Manager of the Strategy and Head of Sustainable Investing at Brown Advisory, said: "We are long-term investors and as such, we feel honored to reflect on the 10-year anniversary of our Large-Cap Sustainable Growth strategy. We are pleased to have demonstrated that there does not have to be a trade-off between strong performance and smart investments that help address some of our society's trickiest sustainability challenges. We remain eager and hungry to improve our ability to use a sustainability lens to add value to fundamental research and active management. We are also thankful to be working alongside phenomenal colleagues who insist on helping clients generate attractive investment returns while also achieving important environmental and social goals. At Brown Advisory, we expect to embark on another decade of developing solutions to investors' growing demands for sustainable investing across all asset classes."
David Powell, Co-Portfolio Manager of the Strategy at Brown Advisory, said: "We believe in the power of active portfolio management, which sets a high bar for each company in our portfolio to have compelling business models and sustainability drivers. Our investment approach relies on very deep, bottoms-up fundamental research. The primary driver of our returns over the past 10 years has been our willingness to do this work to gain high conviction on a company's fundamentals and sustainable business advantages, and own sizeable positions in a concentrated portfolio. We are proud that this approach has delivered attractive returns to investors for the past ten years."
About Large-Cap Sustainable Growth Strategy
The Brown Advisory Large-Cap Sustainable Growth strategy seeks long-term capital appreciation by investing in the common stock of mid- and large-cap companies that the mangers believe effectively implement sustainable business strategies to drive their prospects for future earnings growth. The Strategy is led by portfolio managers Karina Funk, CFA and David Powell, CFA.
About Brown Advisory
Brown Advisory is an independent investment management firm committed to providing its clients with a combination of first-class investment performance, strategic advice and the highest level of service. Brown Advisory was founded in 1993 and became an independent firm in 1998. Today, the firm has more than 650 colleagues – each with an equity interest – serving private clients and institutions in 37 countries from 13 offices globally and is responsible for more than $80 billion in assets for private and institutional clients as of December 31, 2019. For more information, please visit: https://www.brownadvisory.com
1Brown Advisory Large-Cap Sustainable Growth strategy composite, net of fees, annualized performance. All data in this press release is as of December 31, 2019.
SOURCE Brown Advisory