Independent investment management firm Brown Advisory announced today the launch of its new its Global Sustainable Total Return Bond strategy, aimed at offering investors access to an attractive stream of income and risk-adjusted returns, while generating a positive impact on global sustainability issues.
The new strategy is being introduced with the rollout of the Brown Advisory Global Sustainable Total Return Bond Fund (GBP), a Dublin UCITS fund, denominated in British pounds sterling. The fund is being launched with $75 million in assets from seed investors.
Nicole Nesbitt, Partner and Head of US Institutional Sales and Client Service at Brown Advisory, said:
“We are thrilled to offer investors a global sustainable fixed income solution designed to deliver consistent income and capital appreciation over a market cycle, and counterbalance equity risk while producing positive environmental and social impact.
“This globally-diversified, dynamic and sustainability-oriented strategy combines a proven global investment process with our proprietary ESG research methodology, continuing to expand our U.S. fixed income and sustainable investing platforms.”
The new strategy will invest in a broad range of liquid fixed income instruments, including conventional and inflation-linked government bonds, securities and corporate bonds across both developed and emerging markets, beyond only ‘green’ or ‘social’ labelled bonds. The strategy will integrate ESG research with fundamental bottom-up credit analysis, and utilize an active approach to allocate risk tactically to areas of the bond market with the most attractive risk-reward profiles.
The introduction of the strategy follows the announcement by Brown Advisory in March 2021 of the appointment of three portfolio managers, Chris Diaz, Ryan Myerberg, and Colby Stilson, for the launch of a new team responsible for global sustainable fixed income strategies. The new strategy will be managed by Diaz, Myerberg and Stilson.
“The coupling of growing sustainability risks and low rates in developed markets that have been occurring for more than a decade poses an enormous challenge for private and institutional investors utilizing bond allocations to generate income and to manage overall portfolio volatility.
“We believe a global, sustainable and flexible approach to fixed income can offer investors access to a more attractive stream of income and risk-adjusted returns while simultaneously generating a positive impact on global sustainability.”