Northern Trust Asset Management has added two new ESG fixed income strategies to its range.
The Global High Yield ESG Bond Index Strategy and Euro Investment Grade Corporate ESG Bond Index Strategy use negative screening and best-in-class in-house to select companies in the funds.
Valeria Dinershteyn, sustainable investment strategist at Northern Trust Asset Management, says,“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, indeed, have tighter spreads in the fixed income markets. This underscores our belief that higher-rated ESG issuers can, additionally, offer downside mitigation during market uncertainty,” she added.