Bringing you live news and features since 2006 

Northern Trust launches ESG equity index fund


The asset management arm of Northern Trust has launched the Northern Trust World Custom ESG Equity Index Fund.

The fund, which has been customised according to six common value based exclusions, enables institutional investors across the globe to meet commonly held environmental, social, and governance (ESG) criteria and support their investment objectives.

“Throughout Europe, we see an increasing trend among institutional investors looking to include ESG criteria in their investment portfolios,” says John Krieg, managing director of Northern Trust asset management in Europe, Middle East and Africa. “Through the launch of this fund, we are able to respond to the most important ESG themes identified by our clients, and include the benefits associated with a pooled fund structure.”

Northern Trust’s customised index fund has been created based on six key common areas – environment, human rights, anti-corruption, labour and supply chain, tobacco suppliers/producers, and controversial/indiscriminate weapons.

Northern Trust’s ESG screening methodology then excludes companies in these areas which:
• Do not comply with United Nations (UN) Global Compact Principles
• Derive more than five per cent of revenues from the tobacco industry
• Have any involvement in the production of cluster bombs, landmines, nuclear weapons, deplete uranium weapons, biological/chemical weapons, or their related components

“Northern Trust engaged with a number of our institutional clients across Europe to identify any commonalities in the way that investors implement ESG screening criteria in developed and emerging markets,” says Mamadou-Abou Sarr, senior product specialist for global index management at Northern Trust. “This consultative approach offered us excellent insight into the various questions that investors had on human rights, labour, environment and anti-corruption.”

The fund is structured as a Common Contractual Fund which offers tax-transparency through exercising withholding tax treaties that exist between countries in which investors are based, and those in which they invest. Over the long-term, investors using tax-transparent structures may benefit from enhanced investment returns owing to reduced tax drag.

Latest News

REX Shares has announced a strategic reorganisation that integrates its REX Shares, MicroSectors, and T-REX products, as well as REX..
Allspring Global Investments writes that as it builds an investment platform for the future, it has filed for exemptive relief..
LSEG Lipper writes that ETF promoters in Europe enjoyed estimated net inflows (+EUR25.1 billion) for May 2024...
The European Fund and Asset Management Association (EFAMA) has published its 2024 industry Fact Book, which includes a foreword by..

Related Articles

Marcus Wayerer, Franklin Templeton
Franklin Templeton says that emerging markets are navigating a tricky environment at the moment, due to factors such as the...
Matt Barry, Touchstone Investments
Back in 2022, Cincinnati, Ohio-based Touchstone Investments launched its first four ETFs, having previously been predominantly a mutual fund company....
CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Jordan, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by