Saxo Bank, a Fintech specialist focused on multi-asset trading and investment, and investment manager Brown Advisory are teaming up to launch a new digital investment portfolio, Ethical Selection in the SaxoSelect universe.
Saxo Bank’s clients will be the first retail clients outside of the US to get access to invest in Brown Advisory’s Ethical Selection portfolio that offers an attractive and cost-effective way to invest in a sustainable, all-cap, 30-40 stock portfolio comprising US listed companies.
Brown Advisory’s applied research goes beyond negative screening and evaluates every company’s environmental, social, and governance (ESG) attributes at a level deeper than just simple negative screening. The selection process maintains a strong focus on companies that use sustainability drivers to add value to shareholders. The team combines this analysis with their proven active portfolio management capabilities to deliver a best-in-class, core, Ethical Selection strategy to clients.
Brown Advisory is an employee-owned independent global investment management firm serving private clients and institutions. Brown Advisory manages approximately USD71 billion in client assets in 37 countries from eleven offices worldwide.
SaxoSelect is a fully digital and automated trading and investment service that enables clients of Saxo Bank to invest in pre-selected portfolios. Brown Advisory’s solution complements the existing BlackRock, Morningstar and Nasdaq portfolios.
In SaxoSelect, clients have full visibility over each of the stocks in their portfolio and crucially they will own the actual stocks selected by Brown Advisory. Positions are followed in real time in a fully transparent investment environment directly on Saxo Bank’s platforms. The portfolio will be automatically rebalanced in guidance with Brown Advisory’s research.
Kim Fournais (pictured), CEO and founder of Saxo Bank, says: “We are delighted to partner with Brown Advisory and bring their expertise in ESG and impact investing in the hands of our clients.”
“More investors want their portfolios to better reflect their personal beliefs and realise that it is through their investments they can have the biggest impact on the world. Our investments give us a strong voice and unique opportunity to influence and deliver real impact in the world we live in, and Brown Advisory’s track-record demonstrates that ESG factors can also be a solid driver of positive financial returns.”
Tim Hathaway, Portfolio Manager for the Ethical Selection strategy, and Henry Francklin, Head of Nordic Distribution, says: Henry Francklin: “As demand for sustainable investing continues to grow, we are excited that Brown Advisory will be collaborating with Saxo Bank to offer The Brown Advisory Ethical Selection strategy on the SaxoSelect platform. This partnership builds on Brown Advisory’s long history and commitment to sustainable investing, leveraging our deep bottom-up fundamental equity research and sustainable investment team. Similarly to Saxo Bank, we believe that ethical investing does not have to be a trade-off between values and returns.”
Hathaway adds: “Our collaboration with Saxo Bank will allow investors access to a concentrated portfolio of high quality businesses. The Brown Advisory Ethical Selection strategy incorporates a multi-step ESG analysis that goes beyond negative screening, to create a concentrated portfolio of high-conviction names that we believe should provide attractive risk-adjusted returns over time. Put simply, we consider sustainable investing to be smart investing, and we believe that investing through this lens we can drive both attractive returns and positive contributions to our society.”
The annual service fee for the portfolio is 0.75 per cent.
Initially the Brown Advisory Ethical Selection portfolio will be available to institutional and SaxoSelect clients serviced out of the Denmark, Singapore, Central and Eastern Europe and the Middle East.
