Northern Trust : Asset Management Integrates ESG and Factor-Based Investing with Launch of Northern Funds U.S. Quality ESG Fund (NUESX)
Northern Trust Asset Management has launched the Northern Funds U.S. Quality ESG Fund (NUESX), which is designed to give investors access to Northern Trust Asset Management’s investment expertise in factor-based strategies and to a fund that will invest in companies that have favorable environmental, social, and governance (ESG) characteristics.
The U.S. Quality ESG Fund takes a quantitative approach to investing by taking into account financial quality metrics and favorable ESG characteristics.
“Investor demand is strong and accelerating for strategies with a solid investment proposition that integrates ESG principles,” said Bob Browne, Chief Investment Officer, Northern Trust. “This fund draws on our more than 20 years of expertise and experience in both factor-based and ESG investing. It aligns with compelling evidence that shows companies with sound ESG principles tend to mitigate risk and have sustainable business models.”
The investment objective of the Northern Funds U.S. Quality ESG Fund is to achieve long-term capital appreciation by investing in equity securities of U.S. large- and mid-capitalization companies. Using a proprietary quantitative factor-based approach, the Fund’s investment strategy seeks to invest in companies that meet certain criteria for ESG sustainability and exhibit strong business fundamentals, solid management, and reliable cash flows.
The investment model looks to exclude companies that are in violation of certain global norms regarding environmental, social, and corporate governance issues; involved in objectionable business practices (e.g., tobacco and firearms); or engaged in controversial ESG business practices.
As of June 30, 2017, Northern Trust Corporation, through its affiliates, has approximately US$1 trillion in total assets under management, including $65.9 billion specifically related to its diverse set of ESG institutional investment strategies.
The Northern Funds U.S. Quality ESG Fund adds to a suite of factor-based equity funds in the Northern Funds family, which includes: Large Cap Core Fund (NOLCX), Large Cap Value Fund (NOLVX), Small Cap Value Fund (NOSGX), Small Cap Core Fund (NSGRX), Income Equity Fund (NOIEX), and International Equity Fund (NOIGX).
Please carefully read the summary prospectus or prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a summary prospectus or prospectus. The summary prospectus and prospectus contain this and other information about the Funds.
Environmental, Social and Governance (ESG) Investing Risk: is the risk stemming from the environmental, social and governance factors that the Fund applies in selecting securities. The Fund's ESG screening process may affect exposures to certain companies or industries and cause the Fund to forego certain investment opportunities.
Large Cap Stock Risk: Large-capitalization stocks as a group could fall out of favor with the market, causing the fund to underperform investments that focus solely on small- or medium-capitalization stocks.
Mid-Cap Risk: Mid-capitalization stocks typically carry additional risk, since smaller companies generally have higher risk of failure and, historically, their stocks have experienced a greater degree of volatility.
New Fund Risk: The Fund, because it is new with no operating history, may not grow or maintain an economically viable size, in which case the Board of Trustees of the Trust may determine to liquidate the Fund.
Quantitative Investing Risk: The value of securities or other investments selected using quantitative analysis can perform differently from the market as a whole or from their expected performance.
2017 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 23 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2017, Northern Trust had assets under custody/administration of US$9.3 trillion, and assets under management of US$1.0 trillion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.
About Northern Trust Asset Management
Northern Trust Asset Management is a leading global asset management firm serving institutional and individual investors in 29 countries. Our robust investment capabilities span all markets and asset classes, from passive and risk-factor to fundamental active, multi-asset class and multi-manager strategies, delivered in multiple vehicles. As of June 30, 2017, Northern Trust has $1.0 trillion in total assets under management. For more information, please visit our website or follow us on Twitter @NTInvest.
Northern Trust Asset Management comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc. and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.