Press release
Northern Trust Asset Management Launches Quantitative ESG Strategy for EMEA and APAC Investors
The NT World Quality ESG Strategy Expands Manager’s Sustainable Quantitative Global Offering in EMEA and APAC LONDON--(BUSINESS WIRE)-- Northern Trust Asset
About this update from Northern Trust Corporation
[{"type":"text","content":"\nThe NT World Quality ESG Strategy Expands Manager’s Sustainable Quantitative Global Offering in EMEA and APAC\n\n LONDON--(BUSINESS WIRE)--\nNorthern Trust Asset Management (NTAM), one of the world’s leading investment managers, has expanded its suite of responsible quantitative investment solutions, with the launch of the NT World Quality ESG Strategy, which has been available for U.S. investors since 2015.\n\nThe strategy seeks to efficiently target high-quality stocks and companies with higher relative environmental, social and governance (ESG)-ratings whilst defining a responsible investment universe and managing climate change risk. The strategy will be accessible to investors in certain jurisdictions across Europe and Asia-Pacific.\n\nThe strategy incorporates the hallmarks of NTAM’s responsible quantitative investment solutions, including a focus on quality companies and a strong emphasis on controlling risk.\n\n“We believe 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 investment returns. When managed well, they can position a company for success and when mismanaged, they can result in significant risks,” said Julie Moret, global head of sustainable investing and stewardship at NTAM. “The intersection of high quality and highly rated ESG and quality factors means investors in this strategy may benefit from both factor-based investing and ESG characteristics.\n\nThe NT World Quality ESG Strategy takes a holistic view on sustainability that incorporates both financial quality and ESG profile into security selection. The approach enables investors to access a differentiated ESG integration that not only incorporates ESG metrics, but removes exposure to certain lower-scoring ESG securities, and seeks to reduce carbon footprint relative to the benchmark, with the existing strategy delivering a 64 percent reduction in CO2 intensity and an 81 percent reduction in CO2 potential emissions (as at March 31, 2022).\n\nMichael Hunstad, head of quantitative strategies at NTAM, said: “For more than 25 years, we have been researching and managing quantitative active strategies using factors to provide systematic, targeted exposure to compensated equity risks. Our proprietary quality score augments the quality...