Northern Trust launches quant ESG strategy
Northern Trust Asset Management (NTAM) has expanded its suite of responsible quantitative investment solutions with the launch of the NT World Quality ESG Strategy.
The fund had been available for US investors since 2015 but was now being launched for the Australian market.
The strategy sought 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 NT World Quality ESG Strategy would take a holistic view on sustainability that incorporated both financial quality and ESG profile into security selection. The approach would enable investors to access a differentiated ESG integration that incorporates ESG metrics and removes exposure to certain lower-scoring ESG securities, seeking to reduce carbon footprint relative to the benchmark.
Julie Moret, global head of sustainable investing and stewardship at NTAM, said: “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.
“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.”
AUTHOR
Liam Cormican
Recommended for you
The UK-based global asset manager has formed a new group executive committee to accelerate its growth strategy following the commencement of its new CEO this month.
Momentum Media has announced 26 winners across 10 individual and 15 group categories for its brand-new Australian AI Awards.
The financial services industry is currently “overwhelmed with quality and quantity of candidates”, Kaizen Recruitment explains, leading executives to face 12-month long recruitment processes.
Zenith Investment Partners has appointed an experienced research executive as its new group head of research following the departure of Bronwen Moncrieff.
