Northern Trust launches quant ESG strategy

ESG/Northern-Trust/quant/

8 August 2022
| By Liam Cormican |
image
image
expand image

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.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

1 month 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 3 days ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 2 days ago

The Federal Court has made interim orders to freeze the assets of a managed investment scheme, its responsible entity, and a director....

1 month ago

TOP PERFORMING FUNDS