Brown Advisory has launched the Global Sustainable Total Return Bond strategy.

The strategy invests in conventional and inflation-linked government bonds, securitised and corporate bonds, in both developed and emerging markets, as well as using active currency exposure to deliver returns.

The UCITS fund launches with £75 million in assets from seed investors and is governed by Article 8 of the Sustainable Finance Disclosure Regulation (SFDR). The strategy is managed by Ryan Myerberg in London, and Chris Diaz and Colby Stilson in the US.

Brown says the fund is guided by three central convictions:

• Integrating ESG research with fundamental bottom-up credit analysis helps provide a deeper understanding of potential investment risks without sacrificing total returns, whilst helping direct capital to issuers contributing positively to global sustainability

• Adding depth and breadth to the investment opportunity set (across geographies, sectors and currencies) increases the potential to generate higher income and realise diversification benefits

• An active approach (untethered to the benchmark) can provide the flexibility to allocate risk tactically to areas of the bond market with the most attractive risk-reward profiles and customise solutions to better meet investors’ goals

Logie Fitzwilliams, Head of International Business and Global Head of Sales at Brown Advisory, says: “We are excited to bring this dynamic, all-weather bond strategy to the market, designed to deliver attractive risk-adjusted returns while producing positive environmental and social impact. The strategy is a complement and counterbalance to equity risk, while the ESG analysis framework seeks to identify securities that can deliver both investment performance and positive impact.”