Brown Advisory launches Global Leaders Sustainable Fund

Written by Lori Campbell on 4th Nov 2019

Global investment firm Brown Advisory has launched a sustainable version of its top performing Global Leaders Fund in response to strong client demand.

The new Global Leaders Sustainable Fund adds environmental, social and governance (ESG) screens – which will avoid businesses involved with controversial issues such as military equipment, alcohol and tobacco – to the firm’s top quartile performing global leaders strategy.

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Brown Advisory, which looks after $76 billion (£58 billion) of private and institutional assets, has launched the new fund under its Dublin UCITS umbrella. It will be managed by Citywire AAA-rated duo Mick Dillon and Bertie Thomson, who have looked after the existing global leaders strategy since its launch in 2015.

The employee-owned firm says that two stocks, which make up five per cent of its portfolio, have already fallen foul of the ESG screens and been excluded from the fund. It will reinvest the capital across its remaining holdings.

Portfolio manager Mick Dillon said: “We are pleased to have been able to respond to our clients by offering a solution that widens the appeal of our successful Global Leaders strategy through this subtle adaptation.” Bertie Thomson, who also heads up the new portfolio, added: “To us, corporate sustainability is primarily good business sense that goes hand-in-hand with long-term value creation. Our strong track record in ESG analysis, combined with our fundamental analysis, means we can drive attractive long-term performance and risk protection for our investors.”

Since May 2015, the global leaders strategy has consistently outperformed its benchmark, the FTSE All-World Net Index, over both a three and one-year term.

The Global Leaders Sustainable Fund further strengthens Brown Advisory’s range of sustainable investment strategies, which includes the US Sustainable Growth Fund and the All Cap SRI Fund. The U.S. Sustainable Growth Fund is Brown Advisory’s flagship sustainable equity strategy, managed by Karina Funk and David Powell.