Brown Advisory, an independent investment management and strategic advisory firm, today announced the launch of the Brown Advisory Sustainable Bond Fund (the “Fund”), which seeks to deliver attractive risk-adjusted returns over time by incorporating rigorous environmental, social and governance (ESG) research. The Fund will trade under the ticker BASBX.
The Fund is managed by senior portfolio manager, Thomas D.D. Graff, CFA and is supported by Fixed Income ESG research analyst Amy Hauter, as well as analysts across Brown Advisory’s fixed income and ESG teams.
The Fund uses a proprietary ESG research methodology that integrates third-party data with internal analysis that is driven by a bottom-up, credit focused research approach. “Historically, ESG principles have primarily been applied to equities, and as such, thoughtful, integrated funds in fixed income have been comparatively limited,” said Mr. Graff, also the Head of Fixed Income Investing at Brown Advisory. “We think a sustainable strategy can be especially impactful for fixed income investors because of the common focus on managing the downside risks of each investment and identifying how those risks are being managed which then uncovers potential investment opportunities.”
Annually, the Fund’s team will produce a detailed Impact Report. “Many investors are increasingly seeking to deploy their capital in ways that will support sustainable development while also meeting their financial goals, and they are eager to evaluate the impact of their investments through innovative reporting frameworks.” Ms. Hauter said. “Our annual Impact Report will provide transparency into both the depth of our ESG assessment as well as highlight the tangible positive impact outcomes from our investments.”
Brown Advisory currently manages $3.5 billion for clients under ESG or sustainable mandates. The firm’s suite of sustainable investing strategies currently includes Large-Cap Sustainable Growth Equity, Sustainable Core Fixed Income, Tax-Exempt Sustainable Fixed Income and Sustainable Balanced. The firm is a leading participant in the green bond market and was an early adopter of International Capital Market Association’s (ICMA) Green Bond Principals (GBP).
“Sustainability is core to Brown Advisory’s mission and DNA – our roots go back over three decades when key members of our team began managing ESG-focused equity strategies. Today, beyond providing comprehensive planning, mission- and values-aligned solutions that meet the needs of impact-focused investors, our goal is to deliver investment results compelling enough for those whose sole focus is performance,” said Mike Hankin, President and CEO. “We are excited for the Sustainable Bond Fund [BASBX] to join our Sustainable Growth Fund [BIAWX] as a steward for the belief that sustainable investing is smart investing. Across the firm our sustainably focused strategies – via separate account, mutual fund, UCITS or a custom solution created for a specific client – are building track records that demonstrably prove that we can deliver impact AND performance.”