Brown Advisory unveils US sustainable strategy

Firm says an ‘unmet market need’ exists at the junction between sustainability and value

Brown Advisory has launched the US Sustainable Value fund.

The firm said it believes an “unmet market need” has been created by the lack of strategies at the junction between sustainability and value. It said ESG research has historically avoided value stocks due to their exposure to complex industries.

Available to investors globally, the Article 8 fund invests in a concentrated portfolio of companies with attractive valuations, which also benefit from sustainable competitive advantages.

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It is the latest addition to Brown Advisory’s sustainable offerings, which include the Brown Advisory Large Cap Sustainable Growth Fund, Global Leaders Sustainable Fund and Global Sustainable Total Return Bond Fund.

The fund will be managed by Michael Poggi. He joined the firm in 2003 as an equity research analyst, before becoming an associate portfolio manager on the Brown Advisory Small-Cap Fundamental Value strategy.

Poggi will be supported by director of equity ESG research and strategy Katherine Kroll (pictured).

Commenting on the launch, Kroll said: “When assessing a company through an ESG lens, we seek to understand both its management of risks and its ability to execute on sustainable opportunities.

“Our sustainable investing philosophy is centred on a holistic view of a company, where we consider how ESG characteristics intersect with strong fundamentals to provide a competitively differentiated opportunity for investors.”

This article first appeared on sister site Portfolio Adviser.