Strengths in Brown Advisory’s ownership structure and investment culture drive its Above Average Parent rating.
President and CEO Michael Hankin is an integral leader at the Baltimore-based firm. He led a small group of employees and related parties in taking Brown Advisory private in 1998. Hankin has since overseen an expansion of the company and its ownership base. It now has more than 900 employees across two main businesses—asset management and private-wealth advising—and essentially, all of them own equity in the firm. No person controls more than 5%. As of mid-2024, Brown operated 18 offices globally and managed $157 billion in assets.
Brown Advisory’s investing heritage is in growth equities, but environmental, social, and governance investing is increasingly important to the firm’s future. Since acquiring ESG-specialist Winslow Management in 2009, Brown Advisory has expanded its ESG research team, and recent product launches were sustainability-focused offerings in equities and fixed income. Rather than emphasize engagement or impact, Brown Advisory’s ESG efforts mainly target companies whose sustainability practices should improve their bottom lines. This moderate approach has helped the firm weather criticism and retain assets in key strategies such as Brown Advisory Large-Cap Sustainable Growth.
While Hankin—whose career spans more than four decades—hasn’t said he’s retiring soon, Brown Advisory is well-positioned for the future when he does.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Brown Advisory (Branding Name ID: BN0000089M), is covered by Morningstar Manager Research.
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