BROWN ADVISORY U.S.
FLEXIBLE EQUITY
STRATEGY
AS OF MARCH 31, 2021
*Please see the end of this presentation for important disclosures and information regarding assets.
Independent, fundamentally driven investment management firm
FIRM INVESTMENT ASSETS U.S. FLEXIBLE EQUITY
1998Brown Advisory becomes a private and
independent firm. The firm was founded in
1993 as an affiliate of Alex. Brown
51Equity investment and research
professionals
1985Flexible Equity composite performance
begins
2008Expands globally and today has clients in
39 countries
16 years
Average years of investment experience
for our equity research team
2005
Maneesh Bajaj, CFA joins the equity
research team
100%Of our colleagues collectively own 70% of
the firm’s equity
$115 billion*
In total assets under management for
private clients, non-profits and institutions*
2016Maneesh Bajaj, CFA, named as a portfolio
manager for Flexible Equity
$55 billion*
Institutionally marketed strategy assets
under management
$6.1 billion
Brown Advisory U.S. Flexible Equity
strategy assets under management
FIRM & STRATEGY OVERVIEW
Corporate$1,273
Endowments & Foundations
$1,442
Private Client & Other$1,880
Subadvised$55
Taft-Hartley$16
Registered Funds$1,248
Public$148
Wrap SMA$43
Flexible Equity
Assets By Client Type Breakdown1
Firmwide Institutional Strategy Assets
By Strategy Breakdown1
$6,105
MILLION
1Numbers may not total due to rounding. Firmwide Institutional Strategy Breakdown represents assets under management in institutionally marketed strategies. 2Fixed Income strategy assetsinclude the Core Fixed Income, Sustainable Core Fixed Income, Enhanced Cash, Intermediate Income, Limited Duration, Municipal Bond and Tax-Exempt Sustainable strategies. 3Global Leadersstrategy listed assets include Global Concentrated Equity. This information is supplemental to the Brown Advisory Large-Cap Growth Composite presentation.
Large-Cap Growth$18,377
Flexible Equity$6,105
Mid-Cap Growth$757
Equity Income$379
Small-Cap Growth$7,190
Latin American$127
Global Focus$44
Small-Cap
Fundamental
Value
$2,071$54,612
MILLION
Large-Cap
Sustainable
Growth
$9,833
Global Leaders3
$3,623
Custom
Solutions
$301
Fixed Income2
$5,805
ASSET SUMMARYAs of 03/31/2021
4
U.S. FLEXIBLE EQUITY
Investment Strategy
We seek to invest in companies with attractive business economics, run by shareholder-oriented managements and
that have the potential to grow in value for years into the future. We make these investments when we believe the
market presents them as investment bargains, i.e. we are getting a lot for our money. We maintain an open,
flexible mind as to where and how opportunities develop, thus avoiding the limitations of style-boxed approaches.
Value Philosophy – distinct from Style Box Investing
Concentrated, Bottom-up Approach
The Flexible Equity strategy was part of Alex. Brown Investment Management until that entity joined Brown Advisory in 2008. Past performance is not indicative of future results.
*Please see the Brown Advisory Institutional Flexible Equity disclosure statement at the end of this presentation for additional information.
FLEXIBLE EQUITY STRATEGY OVERVIEW
Business owner’s approach leads to investing with the idea that stock investing equates to business ownership
Incorporate ESG due diligence early and consistently in an effort to evaluate how companies are exposed to,
and managing what we deem to be material ESG risks
Maintain margin of safety in our analysis and portfolio construction to reduce risk
Find opportunities across the spectrums of growth and value
Long track record of beating the S&P 500® Index
Track record of outperformance over multiple business cycles, whether “growth” or “value” investing is in favor
BUSINESS SERVICES
ROBERT FURLONG, CFAInvestment experience since 2000
CONSUMER
ERIC CHA, CFAInvestment experience since 1999
PATRICK MAHONEYInvestment experience since 2007
DAN MOONEY, CFAInvestment experience since 2001
ALEX TREVINOInvestment experience since 2016
FINANCIALS
PRIYANKA AGNIHOTRI, CFAInvestment experience since 2009
KENNETH COE, CFAInvestment experience since 2010
CAMERON MATHISInvestment experience since 2013
FRANK O’DONNELLInvestment experience since 2006
HEALTH CARE
SANJEEV JOSHI, CFAInvestment experience since 1994
MARK KELLYInvestment experience since 2008
SUNG PARK, CFAInvestment experience since 2003
JAMIE WYATTInvestment experience since 2018
INDUSTRIALS, BASIC MATERIALS
& ENERGY
JONATHAN CHOU, CFAInvestment experience since 2002
ADI PADVAInvestment experience since 2005
RODDY SEYMOUR-WILLIAMSInvestment experience since 2017
TECHNOLOGY
JOHN BOND, CFAInvestment experience since 1999
JOHN CANNING, CFAInvestment experience since 2014
DREW FRANCKInvestment experience since 2019
EMILY WACHTMEISTER, CFAAssociate Portfolio Manager, Mid-Cap GrowthInvestment experience since 2011
ESG
VICTORIA AVARA, CPAInvestment experience since 2019
EMILY DWYERInvestment experience since 2014
KATHERINE KROLLInvestment Specialist,Large-Cap Sustainable GrowthInvestment experience since 2015
LOUISE NANKIINGAInvestment Experience since 2008
ANGELA WILSONInvestment experience since 2020
GENERALIST
RAN CHANGInvestment experience since 2017
THOMAS FITZALAN HOWARDInvestment experience since 2016
MICHAEL POGGI, CFAAssociate Portfolio Manager, Small-Cap Fundamental ValueInvestment experience since 2003
GEORGE SAKELLARIS, CFAAssociate Portfolio Manager / Portfolio Manager, Small/ Mid-Cap Growth Investment experience since 2001
BRANDON WOODLAND, CFAInvestment experience since 2007
INVESTIGATIVE
LAUREN CAHALANInvestment experience since 2018
RISK
ERIN CAWLEYInvestment experience since 2017
DAVID MYKRANTZInvestment experience since 2020DIRECTOR OF RESEARCH
MANEESH BAJAJ, CFAPortfolio ManagerInvestment experience since 2003
PORTFOLIO MANAGEMENT
R. HUTCHINGS VERNON, CFAAdvisorInvestment experience since 1982
ERIC GORDON, CFAInvestment experience since 1998
FLEXIBLE EQUITY TEAM
MICHAEL FOSS, CFAAnalystInvestment experience since 1987
BRIAN GRANEY, CFAAnalyst & Equity Income Portfolio ManagerInvestment experience since 1996
NINA YUDELLAnalyst & Private Client Portfolio ManagerInvestment experience since 1987
Names in blue denote working group members
Uphold an investment-performance-driven approach
Equity Research Team Principles
Invest in our professional and personal growth
Commit to a culture of shared responsibility
Promote the highest standards of ethics, transparency and professionalism
INVESTMENT TEAM
FLEXIBLE EQUITY’S KEY PRINCIPLES FOR ESGINTEGRATION
Guiding Principles
Strong Governance and
ESG Risk Management
We seek to invest in
companies that have strong
governance structures, and
are run by management
teams that take their
responsibility towards the
environment and society
seriously.
We actively look to invest in
companies with strong and/
or improving ESG risk
management practices.
Seek to Avoid Controversial
or Harmful Business
Practices
We seek to avoid investing in
companies that we believe are
breaching global norms.
We look for companies with
strong governance who value
treating all constituents fairly,
including shareholders,
employees, customers and the
community.
Active Engagement
We seek to maintain an
active dialogue with
company management,
and engage with
companies through
conversations and proxy
voting to help
understand risks,
opportunities and/or
influence behavior
around managing ESG
risks.
*Please see the end of this presentation for important disclosures.
Look for companies with a long-
term business owner-
perspective
Seek opportunities broadly,
avoid labeling before
understanding business
Focus on change; for example,
companies that are improving,
new to public markets, or
experiencing large share-price
movements
Focus on best ideas and
re-underwrite the portfolio as
businesses and markets change
Maintain long-term business-
owner orientation—tend toward
keeping winners
Be willing to differ from
benchmark, but avoid sector
extremes
Use many resources to increase
knowledge
Develop analytical and intuitive
insights from primary research
Utilize a decision framework
which guides the investigation
and decision process
Idea
Generation
Due
Diligence
Universe
We apply business owner thinking to a universe of US mid and large-cap listed stocks.
Portfolio
Construction
Please see the end of this presentation for important disclosures.
INVESTMENT PROCESS OVERVIEW
Incorporate ESG due diligence
early and consistently into the
investment process to uncover
potential risks
Company Analysis Framework
Financial-statement analysis
Competitive-position evaluation
Management interviews and site visits
Cross-checking with competitors, suppliers, industry contacts and sell-side analysts
ESG Assessment uncovers risks
What could go better or worse in the future, and why?
What might the company or industry look like in three to ten years?
Group discussion employing the decision framework leads to robust analysis and better decision-making.
Discussion & Documentation
Full description of business,
economics, likely capital allocation
going forward, and ESG profile
A model to promote a thorough
understanding of the desirability of
business economics and to provide
upside/downside valuation
framework
Explanation of the bargain moment—
why now?
Due Diligence Defined
Every idea is championed by a lead analyst
and the portfolio manager evaluates all of the team inputs.
Portfolio Analysis
How does this stock’s
risk/reward compare to other
holdings?
To what extent should business
risk limit position size?
What economic concentrations
will result from this purchase?
Please see the end of this presentation for important disclosures.
OUR RESEARCH APPROACH
10Please see the end of this presentation for important disclosures.
We use a two-step framework to build robust descriptions of businesses and investment attributes
seeking promising businesses and good entry points at which to invest.
DECISION FRAMEWORK
Desirable traits
Favorable business economics
Enduring competitive advantages
Positive industry dynamics
Capable and trustworthy management
Sensible capital allocation relative to
reinvestment opportunity
Strong governance
Strong / improving ESG risk
management
Undesirable traits
Excessive financial leverage
Business or product obsolescence
Business or accounting complexity
Excessive compensation, misaligned incentives
or management hubris
No profit history or a strong history but at peak conditions
Potential excessive environmental, social and governance
(ESG) risks
Bargain-moment triggers
Change in management,
industry conditions or incentives
Down in price or temporarily out
of favor
Overlooked, undiscovered or
misunderstood
Price matters — are we getting a
lot for our money?
We consider price paid (valuation)
relative to what we receive in
return
We seek opportunities across a
broad range of valuation levels.
Analyze the
StockAnalyze the
Company
The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to
make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that
investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views
expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. This piece is intended solely for our clients and prospective clients
and is for informational purposes only. Please see disclosure statement at the end of this presentation for additional information.
Temporarily Down in Price
or Out of Favor
Change in Management,
Industry Conditions,
or Incentives
Overlooked, Undiscovered,
or Misunderstood
Stericycle (2019)
Best Buy (2013)
VISA (post-2012)
MasterCard (2006)
Canadian National Railway (1996)
Taiwan Semiconductor
Manufacturing Co., Ltd.
Sponsored ADR (2018)
Priceline Group (2014)
(Now Booking Holdings)
Edwards Lifesciences (2013)
Google (2008)
First Citizens (2021)
Delta (2017)
Carmax (2016)
Yahoo! (2015)
EXAMPLES OF BARGAIN MOMENTS
Constructing the Portfolio
Please see the end of this presentation for important disclosures.
Thinking like a long-term business owner helps
reduce annual turnover (and taxes for taxable
investors), allows us to let companies that we believe
have high- quality models to grow to meaningful
position sizes and to maintain above-average active
share in companies that we know well.
Investing across the style-box spectrum enables a
broad search for opportunities, which come in many
forms.
Margin of safety is considered at both the company
and portfolio level.
Typical Portfolio Management Parameters
Number of positions: 35-45
Position size: 1%-6%, maximum 8%
Non-U.S. positions: 12% limit
Minimum Market Cap: $2 billion
Top 10 weight: 30%-50% of total portfolio
Cash position: 0%-5%, 10% max.
Annual turnover: 10%-35%
Active share: No set target, but generally 80%
We historically initiate investments in two to ten new companies each year
in a portfolio that generally holds approximately 40 stocks.
PHILOSOPHY DRIVES PORTFOLIO MANAGEMENT
Multiple Levels of Risk Evaluation and Management
SECURITY LEVEL
TEAM LEVEL
PORTFOLIO LEVEL
Company Selection: Desirable vs. undesirable traits on a
static and dynamic basis
Market Price: Relationship of price to opportunity & relevant
downside; Gauge the market psychology in the share price
action; Percent of capital committed
Specific Potential Company Risks (e.g., ESG risk profile
increases, excessive leverage)
Avoid undue risk aggregation and seek economic sector
balance
Typical Position limits: 8% max. for individual holding
(rarely above 6%), 10% max. cash (rarely above 6%), 12%
non-U.S.
Ongoing investment evaluation and re-evaluation
Ongoing portfolio monitoring for client guideline
compliance
Cross Checking of Investment Thinking
Twice Weekly Research Team Meeting
Continuous Learning Culture
Peer Reviews and Self Examination
Please see the end of this presentation for important disclosures.
RISK MANAGEMENT
We generally sell stocks for three reasons:
More Attractive
Opportunity
Analyst input and price
targets inform the decision
What is the best place for
portfolio capital?
1
THE SELL PROCESS
What Triggers Selling?
Valuation &
Expectation2 Valuation becomes excessive
on a long-term basis
Business fundamentals reach
the “as good as it gets” stage
Growth in position size
distorts portfolio
Thesis is off track—would the
adjusted thesis be bought as
a new idea?
Undesirable traits develop,
risks and complexity increase,
probabilities of success
decline, ESG risk profile
increases
Thesis Change3
Pre-purchase reviews are used to anticipate what could go right or wrong in potential investments,
and post-sale reviews are used to share the learnings from actual investments across the team.
*Please see the end of this presentation for important disclosures.
Analytical
Factor Analysis
Proprietary ESGResearch
Behavioral
A 3rd party gathers data that provides insights into our subconscious inclinations
Informational
Investigative Research
Gateway Network
We are committed to constantly evolving in an effort to improve our investment decisions
By focusing on our analytical and informational advantages—as well as mitigating behavioral biases—we enhance our fundamental research quality and ability to generate alpha
FOSTERING A CULTURE OF CONTINUOUS
LEARNING
*Please see the end of this presentation for important disclosures.
The table below shows the relative performance of the Brown Advisory Institutional Flexible Equity Composite vs. the S&P 500® Index, as of
December 31 in the year indicated (vertically) and compounded historically moving horizontally to the right. Moving diagonally shows
compounded performance from any starting year.
*Brown Advisory Institutional Flexible Equity Composite (gross of fees) vs. S&P 500® Index is defined as the Brown Advisory Institutional Flexible Equity Composite returns (gross of fees) less the
corresponding S&P 500 Index returns. The composite performance shown above reflects the Institutional Flexible Equity Strategy, managed by Brown Advisory Institutional. Brown Advisory
Institutional is a GIPS compliant firm and is a division of Brown Advisory LLC. Please see the Brown Advisory Institutional Flexible Equity disclosure statement at the end of this presentation for a
GIPS compliant presentation. The 12/31 period-end performance is illustrative only. Other annualized period ends would not have had the same relative performance results. All returns greater than
one year are annualized. Past performance is not indicative of future results.
A Long History of Relative Outperformance
WHY BROWN ADVISORY FLEXIBLE EQUITY?
Source: FactSet®. Past performance is not indicative of future results. The composite performance shown above reflects the Brown Advisory Institutional Flexibly Equity Composite, managed by Brown Advisory Institutional. Brown Advisory Institutional is a division of Brown Advisory LLC, and Brown Advisory Institutional is a GIPS compliant firm. Please see the Brown Advisory Institutional Flexible Equity composite disclosure statement at the end of this presentation for more information. The Flexible Equity strategy was part of Alex. Brown Investment Management until that entity joined Brown Advisory in 2008.
Total Return as of 03/31/2021
3 MOS.
RETURN (%)
1 YR.
RETURN (%)
3 YR.
RETURN (%)
5 YR.
RETURN (%)
10 YR.
RETURN (%)
20 YR.
RETURN (%)
25 YR.
RETURN (%)
30 YR.
RETURN (%)
Brown Advisory Flexible Equity
Composite (Gross of fees)8.27 65.80 20.00 19.40 15.93 9.80 11.71 13.00
Brown Advisory Flexible Equity Composite
(Net of fees)8.19 65.31 19.56 18.95 15.49 9.18 11.05 12.31
S&P 500® Index 6.17 56.35 16.78 16.29 13.91 8.47 9.59 10.42
Excess Return (Gross)
vs. S&P 500® Index+2.09 +9.45 +3.22 +3.10 +2.02 +1.33 +2.12 +2.58
Excess Return (Net)
vs. S&P 500® Index+2.01 +8.95 +2.78 +2.65 +1.58 +0.71 +1.46 +1.89
PERFORMANCE DETAIL Quarter Ended 03/31/2021
Source: FactSet®. Past performance is not indicative of future results. The composite performance shown above reflects the Brown Advisory Institutional Flexibly Equity Composite, managed by Brown Advisory Institutional. Brown Advisory Institutional is a division of Brown Advisory LLC, and Brown Advisory Institutional is a GIPS compliant firm. Please see the Brown Advisory Institutional Flexible Equity composite disclosure statement at the end of this presentation for more information. The Flexible Equity strategy was part of Alex. Brown Investment Management until that entity joined Brown Advisory in 2008.
12/31/1984 – 03/31/2021, Quarterly
Cumulative Growth of $100 Invested
Flexible Equity Composite (Gross) Flexible Equity Composite (Net) S&P 500 Index
$11,618 (Gross)14.0% Compound
Annual Growth
Rate (CAGR)
$5,48511.7% CAGR
$9,252 (Net)13.3% CAGR
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
Mar-85 Mar-87 Mar-89 Mar-91 Mar-93 Mar-95 Mar-97 Mar-99 Mar-01 Mar-03 Mar-05 Mar-07 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19 Mar-21
PERFORMANCE DETAILQuarter Ended 03/31/2021
19
PORTFOLIO ATTRIBUTES
As of 03/31/2021
Source: FactSet. *Alphabet Inc. represents a 2.4% holding position in class A and 3.2% in class C shares of the stock. The information provided in this material is not intended to be and should not be considered to be a
recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any
of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. References to specific securities are for illustrative purposes only and do not represent all of the
securities purchased, sold or recommended for advisory clients. Portfolio information is based on a representative Flexible Equity account and is provided as supplemental information to the compliant presentation included
at the end of this presentation. Numbers may not total due to rounding. Please see disclosure statement at the end of this presentation for additional information.
NEW
SECURITY%
PORTFOLIO
1 Microsoft Corp. 5.6
2 Alphabet Inc. (Class A and C)* 5.5
3 Visa, Inc. 4.9
4 Mastercard, Inc. 4.9
5 Facebook, Inc. 4.4
6 Berkshire Hathaway, Inc. Cl B 3.4
7 Apple, Inc. 3.4
8 CarMax, Inc. 3.4
9 UnitedHealth Group, Inc. 3.1
10 Lowe's Companies, Inc. 3.1
11 JPMorgan Chase & Co. 2.9
12 Bank of America Corp. 2.9
13 Booking Holdings, Inc. 2.8
14 Ameriprise Financial, Inc. 2.8
15 Edwards Lifesciences Corp. 2.6
16 PayPal Holdings, Inc 2.5
17 MFB Northern Institutional Diversified 2.1
18 Amazon.com, Inc. 2.0
19 Nomad Foods Ltd 2.0
20 Anthem, Inc. 2.0
21Taiwan Semiconductor Manufacturing Co., Ltd.
Sponsored ADR1.9
22 Accenture PLC 1.9
23 United Rentals, Inc. 1.8
24 Alibaba Group Holding Ltd - Spons ADR 1.8
SECURITY%
PORTFOLIO
25 KKR & Co., Inc 1.8
26 Walt Disney Co. 1.7
27 Carrier Global Corp. 1.7
28 Dollar Tree, Inc. 1.5
29 Analog Devices, Inc. 1.5
30 Stericycle, Inc. 1.4
31 SBA Communications Corp. 1.3
32 Intuit, Inc. 1.3
33 Blackstone Group, Inc. 1.2
34 T-Mobile US, Inc. 1.2
35 Canadian National Railway Co. 1.1
36 Bright Horizons Family Solution, Inc. 1.1
37 Suncor Energy, Inc. 1.0
38 Conagra Brands, Inc. 1.0
39 Otis Worldwide Corp. 1.0
40 Hain Celestial Group, Inc. 1.0
41 Agilent Technologies, Inc. 1.0
42 Crown Castle International Corp. 0.9
43 Merck & Co, Inc. 0.9
44 CIT Group, Inc. 0.9
45 First Citizens BancShares, Inc. Cl A 0.8
46 TJX Companies, Inc. 0.7
47 General Dynamics Corp. 0.5
QTD Purchases/Additions QTD Trims
PORTFOLIO HOLDINGSAs of 03/31/2021
Source: FactSet. Portfolio information is based on a representative Institutional Flexible Equity account and is provided as supplemental information. Characteristics and sector breakdown exclude cash and cash equivalents. Active share analyzes the actual holdings of a manager’s portfolio and comparing those holdings to its benchmark index; the higher the active share, the more divergent the portfolio from the benchmark. Sectors are based on the Global Industry Classification Standard (GICS®) classification system. Please see the Brown Advisory Institutional Flexible Equity Composite disclosure for more information and a complete list of terms and definitions at the end of the presentation.
Portfolio Statistics Sector BreakdownPercentage of Portfolio (%)
REPRESENTATIVE
FLEXIBLE EQUITY
ACCOUNT
S&P 500
INDEX
Weighted Avg. Mkt. Cap. ($, billions) 477.7 465.0
Weighted Median Mkt. Cap. ($, billions) 284.6 161.9
P/E Ratio FY1 Est. (x) 25.2 22.5
P/E Ratio FY2 Est. (x) 21.4 20.0
Dividend Yield (%) 0.8 1.5
Earnings Growth 3-5 Yr. Est. (%) 19.6 14.5
Top 10 Equity Holdings (% or porftolio) 40.1 26.3
Portfolio Turnover (3-Yr. Annualized, %) 13.6 --
2.7
2.5
2.7
26.6
8.9
13.0
11.3
2.8
6.2
12.5
10.9
0.0
2.3
0.0
28.5
7.6
9.8
17.0
1.0
4.1
16.7
13.1
0 5 10 15 20 25 30 35
Utilities
Real Estate
Materials
Info. Tech.
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Disc.
Comm. Services
Representative Flexible
Equity AccountS&P 500 Index
PORTFOLIO ATTRIBUTESAs of 03/31/2021
Source: FactSet. Dividend yield provided by APX®. The categories above are not based on GICS sectors, but on the commonalities of the businesses’ character, as determined by Brown Advisory. The views expressed are those of Brown Advisory as of the
date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be a forecast of future events or a guarantee of future results. Past performance is not a guarantee of future performance. In addition,
these views may not be relied upon as investment advice. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make
or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. References to
specific securities are for illustrative purposes only and do not represent all of the securities purchased, sold or recommended for advisory clients. Portfolio information is based on a representative Institutional Flexible Equity account that includes cash and
equivalents, and is provided as supplemental information. Please see disclosure statement at the end of this presentation for additional information.
As of 03/31/2021
Visa* Ameriprise*
Alphabet Canadian Nat’l Rail*
Mastercard* Anthem*
Facebook Amazon
Microsoft* Alibaba
UnitedHealth Crown Castle
SBA
Communications*
HOLDING YIELD %
Merck 3.4
Suncor* 3.2
Crown Castle 3.1
BANKING HEALTH CARE RETAIL OTHER
JPMorgan* UnitedHealth CarMax* United Rentals”
Bank of America* Anthem* Lowe’s*Booking
Holdings*
First Citizens Alibaba Bright Horizons
Amazon
TJX Companies*
Visa* Alibaba
Mastercard* Paypal
Alphabet Alibaba
Facebook Paypal
Microsoft* Amazon
Booking Holdings* Apple, Inc.*
Walt Disney CarMax *
Accenture Intuit
Microsoft* Accenture
Amazon UnitedHealth
Alibaba JPMorgan*
Apple, Inc.* Alphabet
Alphabet Crown Castle
Apple, Inc.* Analog Devices
SBA
Communications*T-Mobile
16.8%Bank of America* Nomad
Conagra Lowe’s*
Hain Celestial Group Stericycle
Dollar Tree
NEW MEDIA10.8%Alphabet Walt Disney
Facebook Amazon
12.5%JPMorgan* Bank of
America*
Ameriprise* KKR & Co.
First Citizens Blackstone
INTEREST RATES 18.7%
COMMODITY PRODUCTION 3.9 %
Berkshire Hathaway United Rentals*
Lowe’s*
*Capital returns: shares outstanding declining more than 3% in the past three
years
BUSINESS TOLLBOOTHS 40.4%
PAYMENT NETWORKS 14.1%
DIGITAL ECONOMY 36.4%
DATA & TECH ADVANTAGES 26.3%
DIVIDEND YIELD > 3% 2.8%
HOUSING & CONSTRUCTION 9.6%
INTEREST RATES 12.8%
Berkshire Hathaway Bank of America*
JPMorgan* Ameriprise*
First Citizens
WIRELESS COMM. 10.5%
INTERMEDIARIES 28.4%
TURNAROUND/IMPROVEMENT OR LOW EXPECTATIONS 12.9%
NEW MEDIA 13.7% FINANCIAL MARKETS 12.4%
OTHER 3.6%
COMMODITY PRODUCTION 1.0%Edwards Life
SciencesAgilent*
Suncor*
COMMONALITIES OF BUSINESS CHARACTER, INVESTMENT THESIS OR MACRO FACTORS
Stock selection drives sector weights over time.
S&P 500
Index
S&P 500
IndexS&P 500
Index
Sector
Distribution2020 2019 2018 2017 2017 2016 2015 2015 2014 2013 2012 2010 2010
Communication
Services11.3 9.8 9.7 9.5 10.2 8.9 8.2 9.9 8.0 10.7 10.9 15.0 6.8
Consumer
Discretionary16.9 14.2 12.9 13.3 9.2 16.1 13.8 9.7 14.2 14.3 9.8 9.8 7.5
Consumer Staples 4.6 4.3 2.7 3.8 7.9 1.3 1.4 9.4 1.3 2.3 3.6 8.9 10.1
Energy 2.0 3.9 4.5 4.3 6.1 4.8 4.4 6.5 7.5 6.2 12.3 14.2 13.8
Financials 13.6 18.2 23.7 27.4 14.8 25.0 23.2 13.8 19.6 21.0 18.2 19.6 14.5
Health Care 9.8 9.9 9.5 7.8 14.1 11.0 13.4 16.0 11.7 9.5 10.0 11.0 11.3
Industrials 6.9 7.7 6.1 7.2 10.3 6.7 8.6 9.8 11.4 10.4 11.8 6.5 10.8
Information
Technology29.3 26.0 25.4 22.2 18.7 19.7 21.7 16.2 19.2 19.5 17.5 12.6 16.4
Materials -- -- 1.5 -- 3.0 -- -- 3.0 -- -- -- 2.0 4.0
Real Estate 2.4 2.5 2.4 1.7 2.9 1.7 1.4 2.7 1.2 1.3 1.8 -- 1.7
Utilities -- -- -- -- 2.9 -- -- 3.0 -- -- -- -- 3.2
Cash &
Equivalents3.0 3.6 1.5 2.7 -- 4.9 3.9 -- 5.8 4.9 4.1 0.4 --
Flex
Willing to differ from benchmark weights.
Flexibility to adjust to opportunities over time.
An overall balance of sector exposures avoiding the extremes of style-boxed approaches.
Source: FactSet. Portfolio information is based on a representative Institutional Flexible Equity account and is provided as supplemental information as of 12/31/2020. Sectors are based on the Global Industry Classification Standard (GICS) classification system and are as of 12/31 for each year indicated. *Please note that the real estate sector was moved out of the financials sector and promoted to its own sector on August 31, 2016. Sectors include cash and equivalents. Please see disclosure statement at the end of this presentation for additional information and a complete list of terms and definitions. Numbers may not total 100% due to rounding.
FlexFlex
HISTORICAL ECONOMIC SECTOR WEIGHTINGS
38.0
25.3
36.0 36.0
26.2 23.8 25.5 22.6
30.826.4 24.5
13.9
24.2
14.5
22.7 24.5
12.1
23.3
17.3 19.2
14.3
9.1 7.76.6
7.4
7.94.8
9.3
10.1
13.1
11.812.0
35.933.8
30.1 28.2
30.640.9 42.3
45.7
41.146.1
43.7
47.7
47.2
50.243.4 39.4
14.017.5 16.6 16.6
28.9 26.1 24.5 25.120.6 19.7
27.1 29.1
18.522.2 22.1 24.1
0%
100%
Value Index
Growth Index
Not in Index
Both Growth & ValueIndices
2007 2021 Q1
Percentage of Portfolio Securities Overlap vs. Constituents in the Russell 1000® Growth Index & Russell 1000 ® Value Index
Brown Advisory Flexible Equity Representative Account: 2006 – 2021, as of 03/31/2021Source: FactSet. Portfolio information is based on a representative Institutional Flexible Equity account, includes cash and is provided as supplemental information. Style breakdown exclude cash and cash equivalents. Please see the Brown Advisory Institutional Flexible Equity disclosure statement at the end of this presentation for additional information.
The portfolio holds a broad range of ideas not restricted by style box thinking
Changes are driven by bottom up stock selection and search for opportunities
Style mix is an outcome rather than a driver of portfolio construction
Russell 1000® Indices
2006 2011 2016 2017 2018 20192012 2013 2014 20152008 2009 2010 2020
FLEXIBILITY IN STYLE MIX
Percentage of Portfolio Securities (%)
The portfolio holds a broad range of market capitalizations
Changes are driven by bottom up stock selection and search for opportunities
Market capitalization mix is an outcome rather than a driver of portfolio construction
S&P 500 Market Cap
2006 2011 2016 2017 2018 2021 Q12012 2013 2014 20152008 2009 20102007
15.0 16.0 15.020.0
16.2 15.819.0 20.6
17.0 15.519.7 19.0
15.7 17.1 18.0 17.9
25.920.4
27.3
26.727.7
23.4
25.7 24.023.9
22.320.2
17.7 23.2 19.6 15.9 15.4
34.1
33.628.7
28.427.1
29.9
28.525.4
28.028.3 24.8
25.5 23.0 24.7
22.5 25.0
24.929.9 28.9
24.929.0 29.6
26.930.1 31.1 33.9 35.3 37.9 38.0 38.6
43.6 41.6
0%
100%
1st Quartile
2nd Quartile
3rd Quartile
4th Quartile
20202019
Brown Advisory Flexible Equity Representative Account: 2006 – 2021, as of 03/31/2021Source: FactSet. Portfolio information is based on a representative Institutional Flexible Equity account and is provided as supplemental information. Market capitalization breakdown exclude cash and cash equivalents. Please see the Brown Advisory Institutional Flexible Equity disclosure statement at the end of this presentation for additional information.
FLEXIBILITY IN MARKET CAPITALIZATION
26
APPENDIX
STRATEGY PEER RANKING (%)As of 03/31/2021
Brown Advisory Institutional Flexible Equity Composite, Gross of Fees
As of 03/31/2021
Rolling 1 Year – 244 Observations
Rolling 10 Years – 136 Observations
Co
mp
osite
Exce
ss R
etu
rn v
s S
&P
50
0 I
nd
ex (
%)
Value Excess Return vs Growth (%)
6%
39%36%
20%5%
34%38%
24%
9%
20%52%
19%
29%64%
7%
Underperformance During Growth CycleUnderperformance During Value CycleOutperformance During Value Cycle Outperformance During Growth Cycle
Consistent with our philosophy, The Flexible Equity portfolio has demonstrated an ability to
generate consistent and meaningful relative performance through both Value and Growth cycles.
0%
Rolling Monthly Returns: January 2000 – March 2021
Rolling 3 Years – 220 Observations
Rolling 5 Years – 196 Observations
Source: FactSet. Value represented by Russell 1000 Value Index. Growth represented by Russell 1000 Growth Index. Numbers may not total due to rounding. Past performance is not indicative of future results. The composite
performance shown above reflects the Brown Advisory Institutional Flexible Equity Composite, managed by Brown Advisory Institutional. Brown Advisory Institutional is a GIPS compliant firm and is a division of Brown Advisory
LLC. Please see the Brown Advisory Institutional Flexible Equity disclosure statement at the end of this presentation for a GIPS compliant presentation.
MEANINGFUL RELATIVE PERFORMANCE THROUGH MARKET CYCLES
-40
-20
0
20
40
-50 -25 0 25 50
-20
-10
0
10
20
-20 -10 0 10 20
-10
0
10
-20 -10 0 10 20
-5
0
5
-10 0 10
On a calendar-year basis, the strategy has beaten the benchmark 69% of the time. (25 out of
36 years)
On a five-year basis, the strategy has beaten the benchmark 81% of the time.
On a ten-year basis, the strategy has beaten the benchmark 96% of the time.
Source: FactSet®. Past performance is not indicative of future results. The composite performance shown above reflects the Institutional Flexible Equity Strategy, managed by Brown
Advisory Institutional. Brown Advisory Institutional is a GIPS compliant firm and is a division of Brown Advisory LLC. Please see the Brown Advisory Institutional Flexible Equity disclosure
statement at the end of this presentation for a GIPS compliant presentation. Please see full disclosure statement at the end of this presentation for more information. *Excess returns
provided are defined as the Brown Advisory Institutional Flexible Equity Composite returns (gross of fees) less the corresponding S&P 500 Index returns.
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Brown Advisory Flexible
Equity Composite (Gross)20.8 37.3 -3.3 25.0 9.9 -2.0 14.0 37.5 19.9 5.8 11.1 37.1 -36.5 -6.7 17.4 6.5 14.2 30.2 -20.6 3.6
Brown Advisory Flexible
Equity Composite (Net)20.5 36.8 -3.7 24.7 9.5 -2.3 13.6 36.9 19.5 5.4 10.3 36.0 -37.0 -7.4 16.6 5.7 13.3 29.2 -21.2 2.8
S&P 500 Index 18.4 31.5 -4.4 21.8 12.0 1.4 13.7 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 15.8 4.9 10.9 28.7 -22.1 -11.9
Excess Returns (Gross)* +2.42 +5.8 +1.1 +3.2 -2.1 -3.4 +0.3 +5.1 +3.9 +3.7 -4.0 +10.6 +0.5 -12.2 +1.6 +1.6 +3.3 +1.5 +1.5 +15.5
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
Brown Advisory Flexible
Equity Composite (Gross)1.3 9.5 34.6 32.7 33.5 42.6 -1.9 18.5 15.8 46.0 -4.2 28.0 22.7 5.9 17.5 30.5
Brown Advisory Flexible
Equity Composite (Net)0.5 8.7 33.6 31.8 32.6 41.6 -2.7 17.6 14.9 45.0 -4.9 27.1 21.8 5.1 16.7 29.6
S&P 500 Index -9.1 21.0 28.6 33.4 23.0 37.6 1.3 10.1 7.6 30.5 -3.1 31.7 16.6 5.3 18.7 31.7
Excess Returns (Gross)* +10.4 -11.5 +6.0 -0.7 +10.5 +5.0 -3.2 +8.4 +8.2 +15.5 -1.1 -3.7 +6.1 +0.6 -1.2 -1.2
CALENDAR-YEAR RETURNS
Institutional Separate Account Management Fee Schedule
Fee
(basis points)Investment Amount
60 On the first $25 million
50 On the next $25 million
45 On the next $50 million
40 Thereafter
Minimum account size is $5 million
Note: For a full description of fees, please see the firm’s Form ADV Part 2A.
Sub-advisory and other fees will be negotiated on a case-by-case basis.
FLEXIBLE EQUITY FEE SCHEDULE
LISA ABRAHAMSenior ESG Fixed Income Research Analyst
University of Wisconsin, B.A.; Johns Hopkins University, M.B.A.
Impact Assessment & Reporting, Millennium Challenge Corporation
Investment experience since 2018; Joined Brown Advisory 2019
PRIYANKA AGNIHOTRI, CFAFinancial Services Research Analyst
Lady Shri Ram College for Women, New Delhi. B.A.; Indian Institute of Management, Ahmedabad, PGDip; Columbia University, M.B.A.
Analyst, Bernstein Research; Analyst, Phoenix Asset Management Partners
Investment experience since 2009; Joined Brown Advisory 2015
TY ANDREWS
Fixed Income Portfolio Analyst;
Fixed Income Trader
Towson University, B.S.
Financial Associate, Morgan Stanley; Investment Services, T. Rowe Price
Investment experience since 2016; Joined Brown Advisory 2014
VICTORIA AVARA, CPA
ESG Equity Research Analyst
James Madison University, B.B.A.
Senior Audit Accountant, SC&H Group Inc.; Senior Equity Compensation Specialist, Brown Advisory
Investment experience since 2019; Joined Brown Advisory 2016
MANEESH BAJAJ, CFAFlexible Equity Portfolio Manager
University of Kentucky, M.S. University of Pennsylvania, The Wharton School, M.B.A.
Senior Associate, McKinsey & Company; Senior Associate, Standard & Poor’s
Investment experience since 2003; Joined Brown Advisory 2005
TOM BANDUROWSKI, CFAFixed Income Research Analyst
Boston University, B.S.B.A, B.A.
Manager, Credit Restructuring Advisory, EY; Associate, Restructuring & Special Situations Group, Macquarie Capital
Investment experience since 2006; Joined Brown Advisory 2016
CHRISTOPHER BERRIERSmall-Cap Growth Portfolio Manager; Mid-Cap Growth Portfolio Manager
Princeton University, A.B.
Vice President, T. Rowe Price Group
Investment experience since 2000; Joined Brown Advisory 2005
JOHN BOND, CFATechnology Equity Research Analyst
Harvard University, A.B.; Columbia Business School, M.B.A.
Senior Analyst and Assistant Portfolio Manager, NicusaCapital
Investment experience since 1999; Joined Brown Advisory 2012
RUPERT BRANDT, CFALatin American Portfolio Manager
University of Manchester, BSc, University of Exeter, M.A.
Portfolio Manager, Findlay Park Latin American Fund. Merged into Brown Advisory Latin American Fund on 30th April 2018. Analyst, Foreign and Colonial Investment Trust.
Investment experience since 1994; Joined Brown Advisory 2018
JOHN CANNING, CFATechnology Equity Research Analyst
Dartmouth College, B.A.
Investment experience since 2014; Joined Brown Advisory 2014
LAUREN CAHALANInvestigative Equity Research Analyst
Towson University, B.S.
Investment experience since 2018; Joined Brown Advisory 2018
ERIN CAWLEYRisk Equity Research Analyst
Loyola University, B.S.
Investment experience since 2017; Joined Brown Advisory 2012
PETER CAWSTONLatin American Portfolio Manager
University of Cambridge, M.A., MPhil.
Portfolio Manager, Findlay Park Latin American Fund. Merged into Brown Advisory Latin American Fund on 30th April 2018. Analyst and Fund Manager, Baillie Gifford.
Investment experience since 2001; Joined Brown Advisory 2018
ERIC CHA, CFAConsumer Equity Research Analyst
University of Virginia, B.A.; New York University, M.B.A.
Equity Analyst, Bethlehem Steel Pension Fund; Equity Analyst, Oppenheimer Funds
Investment experience since 2000; Joined Brown Advisory 2007
RAN CHANGGeneralist Equity Research Analyst
London Business School M.F.A.
Zhengnian Capital, Beijing
Investment experience since 2017; Joined Brown Advisory 2019
RESEARCH & INVESTMENT TEAM
PAUL CHEW, CFAChief Investment Officer
Mount St. Mary’s, B.A.; Duke University, Fuqua School of Business, M.B.A.
International Asset Management Department, J.P. Morgan & Co.
Investment experience since 1989; Joined Brown Advisory 1995
JONATHAN CHOU, CFAIndustrials Equity Research Analyst
University of Virginia, B.S.; University of Virginia, M.B.A.
Portfolio Manager & Analyst, The Hartford; Analyst, T. Rowe Price; Principal, Gladstone Companies; Analyst, Citigroup
Investment experience since 2002; Joined Brown Advisory 2020
KENNETH COE, CFAFinancial Services Equity Research Analyst
Wake Forest University, B.A.
Analyst, First Annapolis Consulting; Research, Independent Financial Econometrics Study
Investment experience since 2010; Joined Brown Advisory 2013
GARRITT CONOVER, CFASenior Fixed Income Analyst
University of Massachusetts, Amherst BBA
Senior Analyst/Portfolio Manager, Allianz; Research Analyst, Columbia Threadneedle; Investment Analyst, Hartford Investment Management
Investment experience since 2008; Joined Brown Advisory 2021
JAMES DAVIE, CFAFixed Income Research Analyst
Ithaca College, B.A.; Boston University, M.B.A.
Performance Analyst, State Street Investment Analytics
Investment experience since 2010; Joined Brown Advisory in 2015
CHRIS DIAZ, CFAFixed Income Portfolio Manager
University of South Carolina, B.S.; Emory University, M.B.A
Co-Head of Global Bonds & Portfolio Manager, Janus Henderson; Head of Global Rates, ING Investment Management; Fixed Income Portfolio Analyst, SunTrust Equitable Securities
Investment experience since 1997; Joined Brown Advisory 2021
MICK DILLON, CFAGlobal Leaders Portfolio Manager
University of Melbourne, B.A.
Co-Head of Asian Equities & Portfolio Manager, HSBC Global Asset Management; Analyst, Arete Research
Investment experience since 2000; Joined Brown Advisory 2014
KATJA DUNLAPESG Fixed Income Research Analyst
Hamilton College, B.A
Credit Research Analyst, Capital Advisors Group
Investment experience since 2018; Joined Brown Advisory 2021
EMILY DWYERSenior ESG Equity Research Analyst
Smith College, B.A.
Junior Analyst, Research Products, Sustainalytics
Investment experience since 2014; Joined Brown Advisory 2014
THOMAS FITZALAN HOWARDGeneral Equity Research Analyst
University of Edinburgh, M.A.
Investment experience since 2016; Joined Brown Advisory 2016
MICHAEL FOSS, CFAFlexible Equity Research Analyst
Virginia Tech, B.A.; University of Pennsylvania, The Wharton School, M.B.A.
Equity Research, Alex. Brown Investment Management; Managing Director & Portfolio Manager, JP Morgan Fleming; Equity Analyst, Gabelli & Co.; Retail Broker, Tucker Anthony
Investment experience since 1987; Joined Brown Advisory 2004
KARINA FUNK, CFAChair of Sustainable Investing; Large-Cap Sustainable Growth Portfolio Manager
Purdue University, B.S.; MIT, Masters in Civil & Environmental Engineering; MIT, Masters in Technology & Policy; École Polytechnique - France, Post-Graduate Diploma in Management of Technology
Manager, Massachusetts Renewable Energy Trust; Principal, Charles River Ventures
Investment experience since 2003; Joined Brown Advisory 2007
ROBERT FURLONG, CFABusiness Services Equity Research Analyst
York College of Pennsylvania, B.S.; University of Baltimore, Merrick School of Business, M.S.F.
Portfolio Manager, Carson Group; Director of Research, GARP Research & Securities
Investment experience since 2000; Joined Brown Advisory 2018
DREW FRANCKTechnology Equity Research Analyst
Iowa State University, B.S.
Investment experience since 2019; Joined Brown Advisory 2019
ERIC GORDON, CFADirector of Equity Research
University of North Carolina, Chapel Hill, B.A.
Equity Research, Alex. Brown Investment Management; Investment Banking Analyst, Deutsche Bank Alex. Brown, Merrill Lynch & Co.; Equity Research, Citigroup
Investment experience since 1998; Joined Brown Advisory 2008
RESEARCH & INVESTMENT TEAM
THOMAS GRAFF, CFAHead of Fixed Income; Fixed Income Portfolio Manager
Loyola University, B.A.
Managing Director, Cavanaugh Capital Management
Investment experience since 1999; Joined Brown Advisory 1999
BRIAN GRANEY, CFAEquity Income Portfolio Manager
George Washington University, B.A.
Portfolio Manager, Equity Research, Alex. Brown Investment Management; Writer/Analyst, The Motley Fool
Investment experience since 1996; Joined Brown Advisory 2001
TIMOTHY HATHAWAY, CFAHead of U.S. Institutional Business
Randolph-Macon College, B.A.; Loyola University, M.B.A.
Co-Portfolio Manager of Small-Cap Growth Strategy, Brown Advisory; Investor Relations, T. Rowe Price
Investment experience since 1993; Joined Brown Advisory 1995
AMY HAUTER, CFAHead of Sustainable Fixed IncomeFixed Income Portfolio Manager; ESG Fixed Income Research Analyst
Old Dominion University, B.S.
Fixed Income Client Service, Morgan Stanley
Investment experience since 2011; Joined Brown Advisory 2012
SANJEEV JOSHI, CFAHealth Care Equity Research Analyst
India Institute of Technology – Roorkee B.S.; University of Mumbai, M.A.; University of Chicago M.B.A.
Equity Research, UBS Asset Management; Equity Research, SG Asia Securities; Equity Research, DBS Securities; Analyst, Kotak Securities
Investment experience since 1994; Joined Brown Advisory 2018
MARK KELLYHealth Care Equity Research Analyst
Johns Hopkins University B.A.; Johns Hopkins University M.H.S.
Equity Research, Stifel Nicolaus; Managing Consultant, Navigant
Investment experience since 2008; Joined Brown Advisory 2017
KATHERINE KROLLInvestment Specialist
University of Vermont, B.A.
Shareholder Advocate, Green Century Capital Management; Operations Coordinator, Renewable Energy Vermont
Investment experience since 2015; Joined Brown Advisory 2018
KATHERINE LEEFixed Income Credit Analyst
Duke University, B.S.
Analyst, PFM Group; Investment Banking Associate, Raymond James & Associates
Investment experience since 2012; Joined Brown Advisory 2018
PATRICK MAHONEYConsumer Equity Research Analyst
University of Notre Dame, B.S.
Associate Analyst, Oppenheimer & Co.
Investment experience since 2007; Joined Brown Advisory 2013
CAMERON MATHISFinancials Equity Research Analyst
University of Pennsylvania, B.A.
Investment Banking, Equity Research, Evercore
Investment experience since 2013; Joined Brown Advisory 2018
KELLY MCCONKEY
Fixed Income Portfolio Analyst;
Fixed Income Trader
Coastal Carolina University, B.S.B.A.
Investment experience since 2015; Joined Brown Advisory 2011
DAN MOONEY, CFAConsumer Equity Research Analyst
Georgetown University, B.S.; University of Virginia, M.B.A.
Senior REIT Analyst, CB Richard Ellis Investors; Investment Banker, Barclays Capital; Equity Research Senior Associate, Green Street Advisors; Fixed Income Research Associate, Bear Sterns
Investment experience since 2001; Joined Brown Advisory 2011
RYAN MYERBERGFixed Income Portfolio Manager
University of Virginia, B.A
Head and CIO Absolute Return Fixed Income, AmundiAsset Management; Senior Portfolio Manager, Janus Henderson; Head of European Fixed Income, CF Global Trading (UK) Ltd; Trader, BlueMountain Capital Management; Associate, Lehman Brothers; Analyst, Morgan Stanley
Investment experience since 2002; Joined Brown Advisory 2021
DAVID MYKRANTZRisk Equity Research Analyst
Loyola University, B.A.
Investment experience since 2020; Joined Brown Advisory 2017
LOUISE NANKIINGASenior ESG Equity Research Analyst
University of California, Berkeley, B.S.; Northwestern University, M.B.A.
ESG Analyst, Loring, Wolcott & Coolidge Trust; Associate Brand Manager, Unilever; Equity Research, Goldman Sachs
Investment experience since 2008; Joined Brown Advisory 2021
RESEARCH & INVESTMENT TEAM
FRANK O’DONNELL
Equity Analyst
Northwestern University, B.A.; New York University, Stern School of Business, M.B.A.
Investment Analyst, Maltese Capital Management; Senior Associate, MF Development Group; Associate, Sandler O’Neill + Partners, L.P.; Financial Analyst, Morgan Stanley
Investment experience since 2006; Joined Brown Advisory 2021
KEVIN OSTEN, CFAProduct Specialist
Parks College of St. Louis University, B.S.; University of Missouri St. Louis, M.B.A.
Senior Research Analyst, Summit Strategies; Institutional Consulting, Merrill Lynch Pierce, Fenner & Smith
Investment experience since 1999; Joined Brown Advisory 2012
ADI PADVAIndustrials & Basic Materials Equity Research Analyst
Open University of Israel, B.A.; Harvard Business School, M.B.A.
Senior Research Analyst, Neuberger Berman
Investment experience since 2005; Joined Brown Advisory 2015
SUNG PARK, CFAHealth Care Equity Research Analyst
Johns Hopkins University, B.A.; University of Maryland, Smith School of Business, M.B.A.
Associate Portfolio Manager and Research Analyst, Croft Leominster
Investment experience since 2003; Joined Brown Advisory 2006
JOSHUA PERRY, CFA, CAIA, FRM
Fixed Income Portfolio Manager;
Fixed Income Credit Analyst
Princeton University, B.S.E.; University of Chicago, M.B.A.
Analyst, Driehaus Capital Management
Investment experience since 2006; Joined Brown Advisory 2012
MICHAEL POGGI, CFASmall-Cap Fundamental Value Associate Portfolio Manager
University of Richmond, B.S.B.A.
Investment experience since 2003; Joined Brown Advisory 2003
DAVID POWELL, CFA
Large-Cap Sustainable Growth Portfolio Manager
Bowdoin College, B.A.
Investor Relations, T. Rowe Price
Investment experience since 1997; Joined Brown Advisory 1999
CHRIS ROOFFixed Income Research Analyst
Towson University, B.B.A.
Investment experience since 2020; Joined Brown Advisory 2017
GEORGE SAKELLARIS, CFA
Mid-Cap Growth Portfolio Manager; Small-Cap Growth
Associate Portfolio Manager
University of Maryland, B.S.; Robert H. Smith School of Business, M.B.A.
Portfolio Manager, Credo Capital Management; Director of Research, GARP Research & Securities
Investment experience since 2001; Joined Brown Advisory 2014
J. DAVID SCHUSTERSmall-Cap Fundamental Value Portfolio Manager
Georgetown University, B.S.B.A.
Managing Director, Citigroup; Managing Director, Lazard Freres & Co.; Officer, U.S. Army
Investment experience since 1995; Joined Brown Advisory 2008
RODDY SEYMOUR-WILLIAMS
Industrials Equity Research Analyst
University of Bristol, B.S.
Investment experience since 2018; Joined Brown Advisory 2018
STEPHEN SHUTZ, CFAFixed Income Portfolio Manager
Frostburg State University, B.S.
Vice President and Assistant Portfolio Manager, Cavanaugh Capital Management
Investment experience since 1996; Joined Brown Advisory 2003
COLBY STILSONFixed Income Portfolio Manager
University of Colorado, B.S.; University of Pennsylvania, M.B.A.
Investment Partner, Crestone Capital; Venture Capital, TFIN Group; Research, Trading, and Portfolio Management, ArrowMark Partners; Credit Analyst/Non-US Credit and Macro Research, Janus Henderson; Analyst, Level 3 Communications
Investment experience since 2000; Joined Brown Advisory 2021
KENNETH STUZIN, CFALarge-Cap Growth Portfolio Manager
Columbia University, B.A.; Columbia Business School, M.B.A.
Senior Portfolio Manager and Quantitative Strategist, J.P. Morgan
Investment experience since 1986; Joined Brown Advisory 1996
BERTIE THOMSON, CFA
Global Leaders Portfolio Manager
Edinburgh University, M.A.
Senior Investment Manager, Aberdeen Asset Management
Investment experience since 2002; Joined Brown Advisory 2015
ALEX TREVINO
Consumer Equity Research Analyst
University of Virginia, B.S.
Investment experience since 2016; Joined Brown Advisory 2016
RESEARCH & INVESTMENT TEAM
DANIEL TROCCHIA
ESG Fixed Income Research Analyst
Loyola University Maryland, B.B.A.
Investment experience since 2020; Joined Brown Advisory 2020
R. HUTCHINGS VERNON, CFAFlexible Equity Advisor
University of Virginia, B.A.
Portfolio Manager & Equity Research, Alex. Brown Investment Management; Portfolio Manager and Research Analyst, T. Rowe Price, Legg Mason and Wachovia Bank
Investment experience since 1982; Joined Brown Advisory 1993
JASON VLOSICHFixed Income Portfolio Manager; Head Fixed Income Trader
University of Baltimore, B.S.; Loyola University, M.B.A.
Taxable Fixed Income Trader, Ferris, Baker Watts, Inc. and Deutsche Bank Alex. Brown
Investment experience since 1998; Joined Brown Advisory 2008
EMILY WACHTMEISTER, CFA
Mid-Cap Growth Associate Portfolio Manager;
Technology Equity Research Analyst
Washington & Lee University, B.A.
Junior Associate, Morgan Stanley
Investment experience since 2011; Joined Brown Advisory 2013
ANGELA WILSON
ESG Equity Research Analyst
Gettysburg College, B.A.
Investment experience since 2020; Joined Brown Advisory 2013
LYN WHITE, CFA
Fixed Income Research Analyst
University of Delaware, B.S.
Senior Investment Analyst, Fidelity & Guaranty Life Insurance; Senior Portfolio Manager, Standard Insurance Company
Investment experience since 2003; Joined Brown Advisory 2015
BRANDON WOODLAND, CFA
Generalist Equity Research Analyst
Brigham Young University, B.S.; University of Chicago, M.B.A.
Director, Corporate Development, McGrath Rentcorp; Equity Research, T. Rowe Price; Credit Analyst, Freddie Mac
Investment experience since 2007; Joined Brown Advisory 2020
JAMIE WYATTHealth Care Equity Research Analyst
Johns Hopkins University, B.S.
Investment experience since 2018; Joined Brown Advisory 2018
NINA YUDELLPortfolio Manager; Flexible Equity Generalist
University of Baltimore, B.S., M.B.A.; Johns Hopkins University, M.S.B.
Portfolio Manager and Investment Analyst, Alex. Brown Investment Management; Investment Assistant, Oppenheimer & Co., Inc.; Investment Assistant, T. Rowe Price
Investment experience since 1986; Joined Brown Advisory 1992
RESEARCH & INVESTMENT TEAM
WILLIAM C. BAKER*Will is a director of Brown Advisory Incorporated and Brown Investment Advisory &
Trust Company. He is president and CEO of the Chesapeake Bay Foundation. He is
a trustee of Johns Hopkins Medicine, the Open Society Institute — Baltimore and the
Clayton Baker Trust. He also serves as an emeritus board member of the Baltimore
Community Foundation, a director of the Central Maryland Transportation Alliance, a
member of the UMBC Board of Visitors and an honorary board member of the Garden
Club of America. He is a founding director of the Greater Washington Board of
Trade's Green Committee and the Living Classrooms Foundation.
HOWARD E. COX JR.Howard is a director of Brown Advisory Incorporated. He is a special limited partner
with Greylock Partners. In addition to his past Greylock Partners directorships, he is a
past director of the Boston Globe, former director of the Foundation Board of Forum
of Young Global Leaders, former director of the Population Council, former director of
Partners HealthCare’s investment committee, former director of the Kleberg
Foundation’s investment committee and the past chair of the National Venture Capital
Association. He is director emeritus of Stryker (NYSE: SYK), a director for the
Defense Business Board, and an executive committee member and board member of
In-Q-Tel. Howard is an investment committee member of the Dana-Farber Cancer
Institute, the Brookings Institution and the Museum of Fine Arts. He also serves as
advisory trustee of various Fidelity mutual funds. Howard serves on various advisory
boards for the Harvard Business School, Harvard Kennedy School, Harvard Medical
School and Harvard T.H. Chan School of Public Health. He is president of the
Clermont Foundation.
MATTHEW CUTTSMatthew is a director of Brown Advisory Incorporated. He is a partner at Squire Patton
Boggs LLP where he serves as co-chair of the Strategic Advocacy Public Policy
Group, chair of the Tax and Financial Services Public Policy Group and as a member
of the firm’s Recruitment Committee. He has an extensive background in corporate
litigation and spends a majority of his time advocating on federal tax policy. Matthew
serves on the Federal City Council Board as Vice President and as Chairman of the
Langston Initiative Project – a non-profit created to redevelop DC's publicly owned
golf courses. He also serves on the board of the Ron Brown Scholar Program
Steering Committee. Matthew is an Aspen Institute’s Socrates Program Scholar. He
was formally a member of Presidential Candidate Barack Obama’s Mid-Atlantic
Finance Committee and Mayor Adrian M. Fenty’s Transition team and served as chair
of the Washington, DC's Sports and Entertainment Commission, overseeing the
capital construction of the Washington National's baseball stadium.
JOHN O. DOWNINGJohn is the vice chairman of the board of directors of Brown Advisory Incorporated, and a co-
founder of CDK|Brown Advisory, a predecessor firm focused on hedge fund advisory
solutions. Prior to founding CDK in 2002, he spent 19 years at Goldman Sachs & Co., where
he was a general partner from 1992 to 2000 and served on the firm’s Commitments and
Credit Committees. During his last 10 years at Goldman Sachs, he ran European Equity
Capital Markets and subsequently was one of several senior partners in the Global Equity
Capital Markets group in New York. John is on the Investment Committee of Hotchkiss
School, is a director of the Medical University of South Carolina Foundation and has served
on several other endowment boards including Vanderbilt University. Additionally, John is the
co-founder and board member of Vermont 99 Foods.
ROBERT J. FLANAGANBob is a director of Brown Advisory Incorporated and serves as chair of the governance
committee. He is president of Clark Enterprises and oversees the acquisition, management
and development of new investment opportunities. He is also managing director of CNF
Investments and serves on the boards of Eagle Oil & Gas Co, Svelte Medical Systems and
Vascular Therapies. He is a director of the A. James & Alice B. Clark Foundation. Bob is also
a member of the board of advisors of Georgetown University's McDonough School of
Business. He was chair of the board of directors of Washington, D.C.'s Federal City Council,
Martek Biosciences Corporation (NASDAQ: MATK) and Sagent Pharmaceuticals (NASDAQ:
SGNT). Bob also was treasurer, secretary and a member of the board of directors of the
Baltimore Orioles.
BENJAMIN H. GRISWOLD IV*Ben is a partner of Brown Advisory and serves as a senior advisor. He is a director of Brown
Advisory Incorporated, where he serves as chair of the investment committee, and is the
chair of Brown Investment Advisory & Trust Company. Ben graduated from Princeton
University and served as an artillery officer in the U.S. Army before receiving his MBA from
Harvard. He joined Alex. Brown & Sons and became a partner of the firm in 1972, was
elected director and vice chair of the board in 1984, and became chair of the board in 1987.
Ben was a former director of the New York Stock Exchange and Stanley Black & Decker Inc.
He retired from W.P. Carey & Co. LLC in June 2020 and is a member of Flowers Foods (lead
director), Signal Hill Capital and Deutsche Bank’s Americas advisory boards. He is trustee
emeritus of the Johns Hopkins University.
Our independent Board of Directors provides objective guidance and insights.
BOARD OF DIRECTORS
*Also a director of Brown Investment Advisory and Trust Company
Our independent Board of Directors provides objective guidance and insights.
MICHAEL D. HANKIN*Mike is a partner, a member of the Executive Team and serves as president and chief
executive officer. He is a director of both Brown Advisory Incorporated and Brown
Investment Advisory & Trust Company. He is deeply committed to the community and
serves as Chairman of the Baltimore Healthy Harbor Project. He is a trustee of the
Johns Hopkins University, trustee and vice chair of Johns Hopkins Medicine and chair
of the board of managers of the Johns Hopkins University Applied Physics Lab. He
also serves as president of Land Preservation Trust, is a trustee of the Center for
Large Landscape Conservation, and is a director for the National Steeplechase
Association and Associated Black Charities. Mike also serves on the board of
directors of Stanley Black & Decker Inc. and on the boards of directors of three
private companies, Tate Engineering Services, Inc., The Wills Group, Inc. and 1251
Capital Group, Inc. Mike earned a B.A. and M.A. from Emory University in 1979
where he graduated Summa Cum Laude and Phi Beta Kappa, and he received a J.D.
from The University of Virginia School of Law in 1982.
BEATRICE H.M. HOLLONDBea is a director of Brown Advisory Incorporated. She is the chair of the U.K.
Pearson’s family investment office, chair of Millbank Investment Management and
deputy chair of Millbank Financial Services. Bea also serves as the chair of Keystone
Investment Trust, nonexecutive director and chair of the audit committee at
Henderson Smaller Companies Investment Trust, senior independent director at
Templeton Emerging Markets Investment Trust, independent director at M&G Group
Limited, nonexecutive director of Telecom Plus and nonexecutive director of Foreign
& Colonial Investment Trust. Bea remains involved at her alma mater, serving as
chair of the investment committee and as an advisory fellow at Pembroke College at
Oxford University. Additionally, Bea serves as a board member of the Soho Theatre
Company in London, as trustee and as investment committee member of the Esmée
Fairbairn Foundation and as a member of the finance advisory group of Salisbury
Cathedral.
KATHERINE B. KALINKatherine is a director of Brown Advisory Incorporated. She has more than 25 years
experience as a senior executive in the healthcare and professional services industries.
Katherine’s healthcare industry expertise spans diagnostics, medical devices and
pharmaceuticals. Most recently, she led corporate strategy at Celgene for five years. She
also held leadership roles in marketing, sales, strategy and new business development at
Johnson & Johnson. Prior to that, Katherine was a partner at McKinsey and Company,
where she negotiated and led consulting assignments, operating as a strategic advisor to
senior executives. She also served as a manager in corporate finance at Nomura
International in the U.K. and Japan. Her international work experience includes Asia,
Europe and North America. Katherine also serves as a board member for Clinical
Genomics Technologies and Primari Analytics.
GLENN R. MARTIN*Glennie is a director of both Brown Advisory Incorporated and Brown Investment Advisory
& Trust Company. She is the president of Clay County Port and of Universal Sales
Corporation. Glennie serves as trustee for the Women’s Hospital Foundation, the
Missionary Emergency Foundation and the Richard S. Reynolds Foundation.
ROBERT S. MURLEYBob is a director of Brown Advisory Incorporated and serves as chair of the finance
committee. He is vice chair and a senior advisor at Credit Suisse (NYSE: CS) and chair of
investment banking in the Americas. Bob serves as the vice chair of the Ann & Robert H.
Lurie Children’s Hospital of Chicago, chair of the Lurie Children’s Foundation, chair of the
board of the UCLA Anderson School of Management, trustee of the Museum of Science
and Industry of Chicago and a member of the Economic Club and the Commercial Club of
Chicago. Bob also serves as trustee emeritus of his alma mater, Princeton University, and
of the Princeton University Investment Company.
*Also a director of Brown Investment Advisory and Trust Company
BOARD OF DIRECTORS
Our independent Board of Directors provides objective guidance and insights.
DAVID ROBINSONDavid is a director of Brown Advisory Incorporated. He is the co-founder of Admiral
Capital Group, a real estate and private equity firm, and the founder of Carver Academy, a
public charter school located in San Antonio, Texas. He spent 14 years in the NBA with
the San Antonio Spurs and was inducted into the Naismith Memorial Basketball Hall of
Fame in September 2009. In recognition of Mr. Robinson’s philanthropic leadership, the
NBA named its annual community service award the “David Robinson Plaque.” He is a
graduate of the U.S. Naval Academy with a degree in mathematics, and received a
Master’s in Administration from the University of Incarnate Word.
CHARLES E. NOELL IIICharlie is a director of Brown Advisory Incorporated. He is the co-founder of JMI Equity
Partners, a technology-focused private equity firm based in Baltimore, MD and San
Diego, CA. He currently serves as a director of CoreHR, Iris Software Systems, LZ Labs,
Scalable Software and Greystar Real Estate Partners. Since 1991, Charlie has been
president of the family investment company of John J. Moores, the founder and former
chairman and CEO of BMC Software, Inc. Prior to joining JMI, Charlie served as a
managing director and co-head of the technology group of investment bank Alex. Brown
& Sons. He serves on the Board of Trustees of Center Stage, Baltimore’s largest
professional producing theatre, and on the Board of Governors of St. Christopher’s
School and St. James Academy.
WALTER D. PINKARD JR.*Wally is a director of Brown Advisory Incorporated and Brown Investment Advisory &
Trust Company. He is a senior advisor at Cushman & Wakefield. He also serves as
president, investment committee member and board member for the France-Merrick
Foundation and as a trustee of Johns Hopkins Medicine. He is the chair of the
Hippodrome Foundation and of the National Advisory Council of the Johns Hopkins
University School of Nursing. Wally is a trustee emeritus of the Johns Hopkins
University, the Baltimore Community Foundation and the Stulman Foundation. Wally is a
board member of Dome Corporation and Central Maryland Transportation Alliance.
Wally is a director and chair of finance and the investment committee for Baltimore Life
Insurance Company.
*Also a director of Brown Investment Advisory and Trust Company
BOARD OF DIRECTORS
The views expressed are those of the author and Brown Advisory as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be and
should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. Past performance is not a guarantee of future performance and you may not
get back the amount invested. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of
action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments
in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and
do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its
timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is intended solely for our clients and prospective clients, is for informational purposes only, and is not
individually tailored for or directed to any particular client or prospective client.
All investments involve risk. The value of the investment and the income from it will vary. There is no guarantee that the initial investment will be returned. ESG considerations that are material will vary by
investment style, sector/industry, market trends and client objectives. The strategy seeks to identify companies that it believes may have desirable ESG outcomes, but investors may differ in their views of what
constitutes positive or negative ESG outcomes. As a result, the strategy may invest in companies that do not reflect the beliefs and values of any particular investor. The strategy may also invest in companies that
would otherwise be screened out of other ESG oriented funds. Security selection will be impacted by the combined focus on ESG assessments and forecasts of return and risk. The strategy intends to invest in
companies with measurable ESG outcomes, as determined by Brown Advisory, and seeks to screen out particular companies and industries. Brown Advisory relies on third parties to provide data and screening
tools. There is no assurance that this information will be accurate or complete or that it will properly exclude all applicable securities. Investments selected using these tools may perform differently than as
forecasted due to the factors incorporated into the screening process, changes from historical trends, and issues in the construction and implementation of the screens (including, but not limited to, software issues
and other technological issues). There is no guarantee that Brown Advisory’s use of these tools will result in effective investment decisions.
As of March 31, 2021, Brown Advisory had approximately $114.5 billion in client assets for the following entities: Brown Advisory, LLC, Brown Investment Advisory & Trust Company, Brown Advisory Securities,
LLC, Brown Advisory Ltd., Brown Advisory Trust Company of Delaware, LLC, Brown Advisory Investment Solutions Group LLC, Meritage Capital LLC, NextGen Venture Partners LLC and Signature Financial
Management, Inc.
Total strategy assets include accounts that are excluded from the composite. These assets include (1) single strategy assets of balanced accounts, (2) accounts that do not meet the composite minimum market
value requirement and (3) accounts with restrictive guidelines.
Global Industry Classification Standard (GICS®) and “GICS” are service makers/trademarks of MSCI and Standard & Poor’s. Factset ® is a registered trademark of Factset Research Systems, Inc. APX® is a
trademark of Advent Software Systems.
The benchmark is the S&P 500® Index. The S&P 500 Index is a capitalization-weighted index of 500 stocks that is designed to measure performance of the broad domestic economy through changes in the
aggregate market value of 500 stocks representing all major industries. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. An investor cannot invest directly into an index.
Benchmark returns are not covered by the report of the independent verifiers. Standard & Poor’s, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a
subsidiary of S&P Global Inc.
Market Capitalization refers to the aggregate value of a company’s publicly-traded stock. The Weighted Average Market Capitalization of a portfolio equals the average of each holding’s market cap, weighted
by its relative position size in the portfolio (in such a weighting scheme, larger positions have a greater influence on the calculation). Weighted Median: the value at which half the portfolio's market capitalization
weight falls above and half falls below; Maximum and Minimum: the market caps of the largest and smallest companies, respectively, in the portfolio.
Price-Earnings Ratio (P/E Ratio) is the ratio of the share of a company’s stock compared to its per-share earnings. P/E calculations presented use FY2 earnings estimates; FY1 estimates refer to the next
unreported fiscal year, and FY2 estimates refer to the fiscal year following FY1.
Price/Book Value is a valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the company’s balance sheet. The tangible book value number is equal to the
company’s total book value less the value of any intangible assets. Intangible assets can be such items as patents, intellectual property, goodwill etc.
Dividend Yield is the ratio of a stock’s projected annual dividend payment per share for the fiscal year currently in progress, divided by the stock’s price. Portfolio-level statistic equals the weighted average of the
ratios of all holdings in the portfolio.
Earnings Growth 3-5 Year Estimate is the average predicted annual earnings growth over the next three to five years based on estimates provided to FactSet by various outside brokers, calculated according to
each broker’s methodology.
Portfolio Turnover is the ratio of the lesser of the portfolio’s aggregate purchases or sales during a given period, divided by the average value of the portfolio during that period, calculated on a monthly basis.
Portfolio turnover is provided for a three-year trailing period.
Active Share is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the manager’s portfolio versus the weight of each holding in the benchmark index and dividing
by two.
All of the above ratios for a portfolio are expressed as a weighted average of the relevant ratios of each portfolio holding, EXCEPT for P/E ratios, which are expressed as a weighted harmonic average.
Universe performance rankings from eVestment. The performance rankings may not be representative of any one client’s experience because the ranking reflects an average of the accounts that make up the
composite and is provided as supplemental information. eVestment U.S. Large-Cap Core Equity represents managers that invest in companies with a market capitalization value of more than $10 billion.
Managers in this category will typically indicate Large-Cap and a “Primary Style Emphasis” equal to Core. The expected benchmark for this universe would include the S&P 500® Index. The minimum criteria
necessary for inclusion in an eVestment Universe are 1) minimum of one year of performance history, and 2) updated portfolio characteristics for the product. All products meeting the criteria are evaluated for
inclusion. Managers voluntarily populate performance data into the database for inclusion, and the number of managers in each period only consists of managers that were in the universe for that entire period.
DISCLOSURES
Year
Composite Total
Gross Returns (%)
Composite Total
Net Returns (%)
Benchmark
Returns (%)
Composite
3-Yr Annualized
Standard
Deviation (%)
Benchmark 3-Yr
Annualized
Standard
Deviation (%)
Portfolios in
Composite at End of
Year
Composite
Dispersion (%)
Composite Assets
($USD Millions)*
GIPS Firm
Assets
($USD Millions)*
2019 37.3 36.8 31.5 12.8 11.9 42 0.4 2,196 42,426
2018 -3.3 -3.7 -4.4 12.3 10.8 41 0.3 2,263 30.529
2017 25.1 24.6 21.8 11.4 9.9 50 0.3 2,912 33,155
2016 9.9 9.4 12.0 12.1 10.6 52 0.2 2,883 30,417
2015 -2.0 -2.4 1.4 11.1 10.5 56 0.2 2,686 43,746
2014 14.0 13.5 13.7 9.2 9.0 49 0.2 3,195 44,772
2013 37.5 36.9 32.4 11.9 11.9 44 0.4 2,247 40,739
2012 19.9 19.5 16.0 14.6 15.1 40 0.3 1,818 26,794
2011 5.8 5.4 2.1 18.5 18.7 43 1.1 1,714 19,962
2010 11.1 10.3 15.1 22.7 21.9 45 0.7 1,811 16,859
2009 37.1 36.0 26.5 21.3 19.6 48 3.4 1,905 11,058
Brown Advisory Institutional claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Brown Advisory
Institutional has been independently verified for the periods from January 1, 1993 through December 31, 2019. The Verification reports are available upon request. Verification assesses whether (1) the firm has
complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance
with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. GIPS® is a registered trademark owned by CFA Institute.
1. *For the purpose of complying with the GIPS standards, the firm is defined as Brown Advisory Institutional, the Institutional and Balanced Institutional asset management divisions of Brown Advisory. As of July
1, 2016, the firm was redefined to exclude the Brown Advisory Private Client division, due to an evolution of the three distinct business lines.
2. The Institutional Flexible Equity Composite (the Composite) includes all actual, discretionary, institutional accounts with a flexible value equity objective of 100%. The strategy seeks bargains in "value" as well
as "growth" stocks and invests primarily in the common stock of domestic companies with market capitalizations greater than $2 billion at the time of purchase. As of January 1, 2013, the minimum account
market value required for Composite inclusion is $1.5 million. Prior to August 2013, the name of the Composite was Institutional Flexible Value. The strategy remains the same.
3. The Composite was created in 1985. The Composite inception date is January 1, 1985.
4. The benchmark is the S&P 500® Index. The S&P 500 Index is a capitalization-weighted index of 500 stocks that is designed to measure performance of the broad domestic economy through changes in the
aggregate market value of 500 stocks representing all major industries. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. An investor cannot invest directly into an
index. Benchmark returns are not covered by the report of the independent verifiers. Standard & Poor’s, S&P ®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”),
a subsidiary of S&P Global Inc.
5. The composite dispersion presented is an equal-weighted standard deviation of portfolio returns calculated for the accounts in the Composite for the entire calendar year period.
6. Between October 2006 and December 2008, a significant cash flow policy was adopted for the Composite. A significant cash flow is defined as a single flow of cash or securities of more than 25% of the
portfolio's market value at prior month end. Accounts with significant cash flows are excluded from the Composite for a grace period, defined as the month during which the flow occurred. Additional
information regarding significant cash flow policies are available upon request.
7. Gross-of-fees performance returns are presented before management fees but after all trading commissions, and gross of foreign withholding taxes (if applicable). Net-of-fee performance returns reflect the
deduction of actual management fees and all trading commissions. Certain accounts in the Composite pay asset-based custody fees that include commissions. For these accounts, gross and net returns are
also net of custody fees. Other expenses can reduce returns to investors. Prior to 2011, net performance is based on a model fee using the highest fee in effect, 0.75% applied quarterly. For periods after
2011 actual fees are used to calculate net returns. The standard management fee schedule is as follows: 0.60% on the first $25 million; 0.50% on the next $25 million; 0.45% on the next $50 million; and
0.40% on the balance over $100 million. Further information regarding investment advisory fees is described in Part II A of the firm’s form ADV. Actual fees paid by accounts in the Composite may differ from
the current fee schedule.
8. The three-year annualized ex-post standard deviation measures the variability of the Composite (using gross returns) and the benchmark for the 36-month period ended on December 31.
9. Valuations and performance returns are computed and stated in U.S. Dollars. All returns reflect the reinvestment of income and other earnings.
10. A complete list of composite descriptions, policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
11. Past performance is not indicative of future results.
12. This piece is provided for informational purposes only and should not be construed as a research report, a recommendation or suggestion to engage in or refrain from a particular course of action or to make
or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell or hold any of the securities mentioned, including any mutual fund managed by Brown Advisory.
INSTITUTIONAL FLEXIBLE EQUITY COMPOSITE