Press release
Northern Trust Asset Management Offers Pioneering ESG Fixed Income Strategies
Strategies Set to Help Investors Achieve Desired Exposure & Improve their ESG Score whilst Generating Return During Volatile Markets LONDON--(BUSINESS
About this update from Northern Trust Corporation
[{"type":"text","content":"\nStrategies Set to Help Investors Achieve Desired Exposure & Improve their ESG Score whilst Generating Return During Volatile Markets \n\n LONDON--(BUSINESS WIRE)--\nNorthern Trust Asset Management, one of the world’s leading investment managers, continues to expand its sustainability strategies, with two strategies that enable investors to combine fixed income and sustainable investing.\n\n\nThe Global High Yield ESG Bond Index Strategy and Euro Investment Grade Corporate ESG Bond Index Strategy aim to integrate sustainability considerations in order to potentially mitigate both financial and non-financial risks – and improve risk-adjusted returns as well as the overall ESG profiles.\n\n\nThese strategies are designed to provide investors their desired yield exposure while improving their ESG score within a risk-controlled framework. This is achieved through a combination of negative screening to remove certain companies that may have poor ESG considerations, such as violators of the U.N. Global Compact or companies with controversial lines of business. Northern Trust Asset Management then applies its best-in-class in-house optimization process. This results in improved ESG profiles, desired benchmark risk controls and yield targets.\n\n\n“Although investors have been implementing equity-based ESG strategies for many years, many asset owners had been constrained by the lack of ESG investment options available in the fixed income market,” said Marie Dzanis, head of Northern Trust Asset Management, Europe, Middle East and Africa. “At Northern Trust Asset Management, we continue to innovate and pioneer ESG and sustainable strategies and analytics to meet investors’ evolving needs. We are committed to designing solutions that complement passive and active investments, mitigate risks and help investors capture new opportunities.”\n\n\n“By offering these strategies at the intersection of fixed income and sustainability, we are helping investors reach their investment goals,” said Valeria Dinershteyn, sustainable investment strategist at Northern Trust Asset Management.\n\n\n“These strategies employ a propriety ESG optimization to enhance the portfolio’s ESG rating relative to the index. In fact, during recent market turbulence, we’ve had an opportunity to watch our investment thesis play out. We found higher-rated ESG companies did,...