Northern Trust Asset Management has expanded its sustainability strategies, enabling institutional investors to combine ESG investing solutions with the manager's expertise in quantitative investing across developed and emerging markets.
The Emerging Markets Quality Low Carbon strategy aims to tackle climate change risk while enhancing performance through the integration of Northern Trust's proprietary Quality factor, which targets companies that are efficiently managed, profitable, and have strong cash flows.
Designed to invest at the intersection of low carbon and high quality, the strategy is an example of Northern Trust's approach of delivering quantitative investment solutions that focus on the efficient use of risk - without sacrificing performance. Driven by client demand, the strategy is executed using the investment manager's proven record of innovation in ESG and quantitative investing.
The strategy provides investors an environmentally cleaner exposure to emerging markets equities with a carbon intensity reduction target of 70 percent.
Other strategies, including Europe Value ESG, North America Value ESG or Emerging Markets Multifactor ESG, incorporate a set of norm-based and business-involvement screens. Within an end-to-end risk management framework, the strategies employ a proprietary multi-factor model using value, quality and momentum to score all investable constituents.
Northern Trust Asset Management also recently announced it had launched a World Green Transition Index Strategy, Small Cap ESG Low Carbon Index Strategy and has added thermal coal screens to its existing suite of Custom ESG Index Strategies to align with evolving investor preferences.