Brown Advisory is to launch the BA Beutel Goodman US Value Fund, a new Dublin-UCITS Fund which will be sub-advised by Beutel, Goodman & Company Ltd, a Toronto-based investment manager with over USD28.6 billion in assets under management. This follows the successful launch almost three years ago of the Brown Advisory – Beutel Goodman Large Cap Value Fund in the US (BVALX), which today has over USD500 million in assets.
Logie Fitzwilliams, Head of International Business at Brown Advisory, says: “There has been increasing demand from our UK and European clients for US value. In Beutel Goodman, we have found a partner with a similar investment philosophy to our own and an impressive long-term track record. Given the limited number of high-quality US equity value strategies currently available to the UK market, we are now pleased to be able to bring the expertise of Beutel Goodman to our clients here.”
The Fund will initially be seeded with up to USD25 million of client assets managed out of Brown Advisory’s London office.
The Fund will follow the Beutel Goodman US Equity Strategy (the Strategy), which uses bottom-up, fundamental research to identify and invest in high-quality companies trading at discounts to their intrinsic value, which Beutel Goodman considers to be the present value of their sustainable free cash flow. The Strategy has a multi-year investment horizon, typically holding 25-35 stocks in a high-conviction, low-turnover portfolio.
The Beutel Goodman team has built a strong track record with the Strategy returning 12.5 per cent (net of fees) vs 9.1 per cent for the Russell 1000 Value (net) Index over 10 years, resulting in over 3 per cent annualised excess performance putting it in the top 4 per cent of managers according to eVestment.
Rui Cardoso, MBA, CFA, Managing Director and Portfolio Manager US & International Equities at Beutel Goodman, says: “We believe value is critical to deciding where to invest our clients’ capital. Investing is not just about finding great businesses in excellent end markets that have wide moats to provide continued profitability. What you pay for expected growth and profitability is as important in the long term as what the growth and profitability actually become. Regardless of who is winning the battle between growth and value at any given time, we believe our value style will continue to deliver strong returns over a cycle while protecting capital.”
Glenn Fortin, CFA, Vice President and Portfolio Manager at Beutel Goodman, adds: “At Beutel Goodman, our successful track record is testament to our unwavering value investment philosophy that allows us to deliver attractive risk-adjusted returns to our clients, while protecting their capital in volatile markets. We are unapologetically dogmatic in our view that our process is the best way that we can achieve long-term investment excellence for our clients. That belief is ingrained in every stock decision, in every one of our funds, and by every analyst on our team. It is also evident in our rigorous sell discipline. In our view, our strict adherence to this process removes emotion from the investment decision, ultimately benefitting our clients. We are delighted to be partnering with Brown Advisory again to launch this Fund.”
The Fund will launch on Monday 30 November 2020.