NTAM launches quants ESG strategy

Northern Trust Asset Management has launched the NT World Quality ESG strategy for EMEA and APAC investors.

The strategy invests in stocks and companies with higher relative ESG ratings whilst defining a responsible investment universe and managing climate change risk. The strategy will be accessible to investors in certain jurisdictions across Europe and Asia-Pacific.

The approach enables investors to access a differentiated ESG integration that not only incorporates ESG metrics, but removes exposure to certain lower-scoring ESG securities, and seeks to reduce carbon footprint relative to the benchmark, with the existing strategy delivering a 64 percent reduction in CO2 intensity and an 81 percent reduction in CO2 potential emissions (as at March 31, 2022).

“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,” said Julie Moret, global head of sustainable investing and stewardship at NTAM. “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.