MAB Quarterly Review Q1 2025 - Growth - Flipbook - Page 4
Portfolio changes
Complete sales
Brown Advisory Global
Leaders Fund:
GMO Quality Fund:
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.
54
New buys
We replaced the Brown Advisory Global Leaders
Fund with the GMO Quality Fund. We got to know
this manager over a number of years as they had sat
on our “substitute bench”. GMO has historically been
a value-oriented 昀椀rm, however, in recent decades,
they have developed highly successful capabilities
in the quality investment style, often at the more
price-sensitive end of the quality manager universe.
The fund has a strong long-term track record and
has outperformed both the asset class and the
style-speci昀椀c benchmark. We believe there is a lot
to like about their approach, particularly their
decision-making process when it comes to sizing
higher-risk positions.
Manager Meetings
We attended 54 meetings during the quarter to review
existing and prospective managers.
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