Brown Advisory Global Leaders Strategy Celebrates Five Years of Outperformance

Brown Advisory Global Leaders Strategy Celebrates Five Years of Outperformance

PR Newswire

LONDON, May 5, 2020

- Five years of strong performance sees the Brown Advisory Global Leaders Strategy outperform benchmark by over 4.5% annualised since inception[1]

- Net inflows of $464 million YTD bringing total AUM to over $1.3 billion[2]

- Recent portfolio activity includes new investments in Autodesk and Intuit increasing exposure to the IT sector[3]

LONDON, May 5, 2020 /PRNewswire/ -- Brown Advisory, an independent and privately held global investment management firm which oversees more than $78 billion in client assets, celebrates five years since the launch of its $1.3 billion Global Leaders Strategy ("the Strategy"). Led by co-portfolio managers, Mick Dillon, CFA and Bertie Thomson, CFA, the Strategy has meaningfully outperformed the FTSE All World Index over the five-, three-, one-year and year-to-date periods[4] and by more than 4.5% annualised since inception.[5] Over the three-year period, the Strategy is ranked in the top percentile of global equity managers according to data provided by eVestment.[6]

Logie Fitzwilliams, Head of International Business at Brown Advisory said, "We are thrilled to have delivered strong relative returns for our clients over the last five years. The strong inflows into the Strategy are a testament to the solid performance track record and the confidence our clients have in the disciplined and unique investment philosophy that Mick and Bertie have developed."

In the last two months the managers have made investments in Autodesk and Intuit, which marks a sharp increase in portfolio activity compared to only two new investments made between August 2018 and March 2020. These vertical software companies have featured on their watch list for several years given their market share, multiple economic moats, high returns on capital, strong balance sheets and recurring revenue. The recent market dislocation provided an opportunity to invest at prices that were at a discount to the managers' estimation of intrinsic value.

Mick Dillon, Co-Portfolio Manager at Brown Advisory, said: "We maintain a dynamic 'subs-bench' and have been actively monitoring this ready-to-buy list of around thirty companies we would like to buy at the right price. Right now we are seeing some of the best internal rate of returns of the past five years and are pleased to have had the opportunity to initiate new compelling investments at very attractive prices."

Bertie Thomson, Co-Portfolio Manager at Brown Advisory, said: "Our long-term approach focusing on business fundamentals and a healthy appreciation for valuation, has led us to find compelling investments in various sectors of the economy like technology, financials and industrials, and we also expand our global reach to include emerging markets. We are not afraid of looking different to our benchmark and with Brown Advisory's strong history and success investing in US equities, we believe we are well positioned to uncover the best opportunities in the vast global market."

References:

  1. Performance refers to preliminary strategy composite data through 30th April 2020, net of fees. The Global Leaders Composite net of fees returned 9.0% vs 4.3% for the FTSE All-World Index (net) annualised since inception. 
  2. AUM noted refers to total strategy assets under management, as of 30th April 2020.
  3. Exposure to the information technology sector has increased to 28.9% for the benchmark as of 30th April 2020.
  4. Performance refers to preliminary strategy composite data through 30th April 2020, net of fees.
  5. Performance refers to preliminary strategy composite data through 30th April 2020, net of fees.
  6. Over three-years from 31st March 2017 to 31st March 2020 the Strategy is in the top 1% of peers ranked in the eVestment Global Large-Cap Core Equity Universe. 

 

 

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