Northern Trust Asset Management launches quantitative ESG strategy for EMEA and APAC investors

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LONDON–(BUSINESS WIRE)–Northern Trust Asset Management (NTAM), one of the world’s leading investment managers, has expanded its range of responsible quantitative investing solutions, with the launch of the NT World Quality ESG strategy, available to investors Americans since 2015.

The strategy aims to effectively target high-quality stocks and companies with relatively high environmental, social and governance (ESG) ratings while defining a responsible investment universe and managing climate change risk. The strategy will be available to investors in certain jurisdictions in Europe and Asia-Pacific.

The strategy incorporates the hallmarks of NTAM’s responsible quantitative investment solutions, including a focus on quality companies and a strong emphasis on risk control.

“We believe that material environmental, social and governance factors are pre-financial indicators that can affect a company’s future financial viability and clients’ long-term risk-adjusted returns on investment. When managed well, they can position a business for success and when managed poorly, they can lead to significant risk,” said Julie Moret, Global Head of Sustainable Investing and Stewardship at NTAM. “The intersection of high-quality, highly-rated ESG and quality factors means that investors in this strategy can benefit from both factor investing and ESG characteristics.

The NT World Quality ESG strategy takes a holistic view of sustainability that integrates both financial quality and ESG profile into stock selection. The approach provides investors with access to differentiated ESG integration that not only incorporates ESG metrics, but removes exposure to certain low-scoring ESG securities, and seeks to reduce the carbon footprint relative to the index of benchmark, with the existing strategy offering a 64% reduction in CO2. and an 81% reduction in potential CO2 emissions (as of March 31, 2022).

Michael Hunstad, Head of Quantitative Strategies at NTAM, said: “For more than 25 years, we have researched and managed active quantitative strategies using factors to provide systematic and targeted exposure to remunerated equity risk. Our proprietary Quality Score augments the quality bias found in many ESG strategies while our portfolio construction techniques seek to avoid uncompensated risk.

NTAM is a founding member of the One Planet Asset Manager initiative, which sees member asset managers commit to advancing understanding of the implications of climate-related risks and opportunities in long-term investment portfolios through engagement, research and sharing of investment practices. He is also a founding member of the Climate Action 100+ initiative which engages with 166 companies representing 80% of global corporate greenhouse gas emissions and supports the Financial Stability Board’s working group on climate change. climate-related financial disclosure (TCFD) – a consortium created in 2015 to develop a voluntary and consistent framework for companies to use to disclose climate-related financial risks to investors and other stakeholders.

With over $1 trillion in investor assets, including over $100 billion in sustainable investing assets under management (as of June 30, 2022), NTAM is one of the largest investment managers in the world.

This information is not targeted or intended for distribution to persons in any jurisdiction where such distribution would be contrary to local law or regulation.

At Northern Trust Asset Management (“NTAM”), we define sustainable investing as encompassing all NTAM strategies and investment accounts that use values ​​and standards-based screens, ESG integration and best of its category, or thematic investing which can focus on a specific ESG issue such as climate risk. NTAM’s Sustainable Investing includes NTAM-designed portfolios as well as portfolios managed using client-defined methodologies or filters. As the aforementioned data, analytical models, and portfolio construction tools available in the market have evolved over time, so has NTAM. NTAM’s Sustainable Investing encompasses client strategies and assets managed in accordance with client-specified responsible investing terms (historically referred to as socially responsible), as well as portfolios that draw on contemporary approaches and datasets. , including ESG analysis and ESG thematic investing.

About Northern Trust Asset Management

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently achieve their long-term goals. Supporting US$1 trillion in investor assets as of June 30, 2022, we understand investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take. – in all market environments and all investment strategies. That’s why we combine sound capital markets research, expert portfolio construction and comprehensive risk management to design innovative and effective solutions that deliver targeted investment results. As committed contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.

Northern Trust Asset Management is comprised of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, KK, NT Global Advisors, Inc., 50 South Capital Advisors, LLC , Belvedere Advisors LLC, Northern Trust Asset Management Australia Pty Ltd and the investment staff of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to businesses, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 23 US states and Washington, DC, and 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2022, Northern Trust had assets under custody/administration of US$13.7 trillion and assets under management of US$1.3 trillion. For over 130 years, Northern Trust has distinguished itself as an industry leader for its exceptional service, financial expertise, integrity and innovation. Visit us at northtrust.com. follow us on Twitter @NorthernTrust or Northern Trust Corporation on LinkedIn.

Northern Trust Corporation, registered office: 50 South La Salle Street, Chicago, Illinois 60603 USA, incorporated with limited liability in the USA Global legal and regulatory information can be found at https://www.northerntrust.com/terms -and-conditions.

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