MAB Quarterly Review Q1 2025 - Cautious - Flipbook - Page 4
Portfolio changes
Complete sales
Brown Advisory Global
Leaders Fund:
Vanguard Global Aggregate
Bond ETF:
We have been invested with this manager since April
2020, and it is held in our Global Developed Market
Equities asset class. While the strategy has worked
well in certain environments due to its defensive
characteristics from diversi昀椀ed revenue sources, we
have been less impressed by the overall returns since
our initial investment. The manager has modestly
underperformed both the style-speci昀椀c and strategic
benchmark since our initial investment and should
have generated greater returns given the nature of
the types of stocks which have outperformed over
that period. While we always seek to be long-term
investors, we felt we had given the team enough
time to generate outperformance, which never
materialised and felt now was the correct time to
move on.
The Vanguard Global Aggregate Bond ETF does not
track the standard Bloomberg Global Aggregate
Index, but rather a 昀氀oat-adjusted and scaled variant.
This results in a structural underweight to Japanese
Government Bonds (JGBs) and CNY-denominated
Chinese bonds. While we were previously comfortable
with the China underweight due to complementary
exposure through another manager, we now prefer
a Global Aggregate Bond ETF whose underlying
portfolio mirrors more closely the composition of the
Bloomberg Global Aggregate Index.
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