Another ESG Fund Hits the Market

Brown Advisory has announced the launch of the Global Leaders Sustainable Fund under its Irish domiciled UCITS umbrella. The $76 billion company said that the new UCITS Fund adds ESG screens to its top quartile performing Global Leaders Strategy. According to a press release, the addition of the ESG screens came in response to client demand.

“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,” said Mick Dillon, Portfolio Manager of the Global Leaders Sustainable Fund.

Dillion will manage the fund alongside Bertie Thomson.

Brown Advisory and ESG Funds

Meanwhile, the firm says that its Global Leaders Sustainable Fund expands on the ESG integration that is part of its bottom-up research process. Furthermore, it adds back-end screens to avoid certain business controversies, such as military equipment, alcohol, and tobacco.

“To us, corporate sustainability is [a] primarily good business sense that goes hand-in-hand with long-term value creation,” said Thomson. “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.”

Finally, the portfolio managers seek to identify companies in any sector or country that are capable of compounding excess economic returns over long periods of time. Furthermore, since inception in May 2015, and on a three and one-year basis, the Global Leaders strategy has consistently outperformed its benchmark, the FTSE All-World Net Index, and now has some US$730 million AUM. The Global Leaders Fund is up over 25% year to date vs. c. 18% for the benchmark.

Related: UBS’ Walsh on ESG: ETFs Can’t Be Subject to A Standard ESG Definition