Responsible Investing Solutions Launched by Northern Trust
New customisable responsible investing solutions offered based on MSCI ESG
Research and Indices
LONDON -- November 01, 2012
Northern Trust (Nasdaq: NTRS) has enhanced its range of solutions for
institutional investors seeking socially responsible investing options through
an agreement with MSCI ESG Indices and MSCI ESG Research.
Using MSCI’s environmental, social, and governance (ESG) research, ratings,
and screening tools, Northern Trust will be able to provide customisable ESG
solutions to its clients.
“Northern Trust has a broad commitment to responsible investing and is
dedicated to providing our clients with customisable index solutions that help
them meet their ESG objectives,” said Steve Potter, global head of asset
management at Northern Trust. “We are increasingly seeing growth in ESG
portfolios as investors become more aware of ESG factors and their possible
influence on a corporation’s financial profitability and brand reputation.”
“Our clients are looking for thoughtful, customised ESG solutions which
address their requirements not only for good governance and social intent, but
in generating returns,” he added.
Northern Trust clients looking to integrate ESG factors in their investment
portfolios can, through the agreement with MSCI, now access 79 distinct
indices ranging from global ESG best in class to regional responsible
investing themes, such as clean technology, and further customise these
according to their unique requirements. Northern Trust is also working with
MSCI to create custom ESG indices for passive institutional funds.
Northern Trust manages approximately US$17 billion in socially screened,
active and passive managed portfolios for clients across the globe and has
close to 25 years of experience managing socially responsible portfolios and
socially-screened assets. This agreement demonstrates Northern Trust’s
long-term global commitment to developing responsible investing products and
adds to its existing portfolio of responsible investing solutions, including
the Northern Trust Global Sustainability Index Fund (Ticker: NSRIX). The
Global Sustainability Index Fund was the first mutual fund to track a global
sustainability index and rates, and was awarded a Gold award by Standard &
Poor’s Equity Research in its U.S. Mutual Fund Excellence Awards Program.
“MSCI is delighted to be working with Northern Trust to offer a range of
global ESG indices to institutional investor clients,” said Remy Briand,
Managing Director and Head of MSCI Index and ESG Research. “MSCI ESG
Research’s objective is to provide investors with a broad range of tools to
integrate ESG factors across classes according to their specific
“By licensing all of the MSCI ESG indices we have full access to the
best-in-class research and analysis undertaken by MSCI,” said Mamadou-abou
Sarr, senior product specialist for global index management at Northern Trust.
“This will allow us to efficiently and economically implement passive ESG
investment portfolios for our clients around the world.”
According to a study conducted by Northern Trust in 2011, Customized Beta -
Changing Perspectives on Passive Investing, 44 percent of investors surveyed
indicated that their responsible investing allocations had increased in the
past two years.
As at 30 June 2012, Northern Trust manages over US$704 billion of assets for
its clients worldwide. Of this US$321.2 billion are index assets and US$328.2
billion active, with the remainder managed in alternatives or multi-manager
solutions. Northern Trust is currently ranked fourth largest index manager in
the world, according to a Pensions & Investments magazine special report
published in May 2012.
“Investors are showing increased interest in analysing their financial
portfolios to assess climate-change impact and risk, among other ESG factors,”
Connie Lindsey, Head of Corporate Responsibility at Northern Trust. “This
gives us an opportunity to provide clients with more advanced capabilities
related to ESG analysis. These new investment offerings are an important part
of Northern Trust’s commitment to ESG principles, in line with the continued
execution of our global corporate citizenship practices.”
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment
management, asset and fund administration, banking solutions and fiduciary
services for corporations, institutions and affluent individuals worldwide.
Northern Trust, a financial holding company based in Chicago, has offices in
18 U.S. states and 16 international locations in North America, Europe, the
Middle East and the Asia-Pacific region. As of September 30, 2012, Northern
Trust had assets under custody of US$4.8 trillion, and assets under investment
management of US$749.7 billion. For more than 120 years, Northern Trust has
earned distinction as an industry leader in combining exceptional service and
expertise with innovative products and technology. For more information, visit
www.northerntrust.com or follow us on Twitter @NorthernTrust.
About MSCI and MSCI ESG Research
MSCI Inc. is a leading provider of investment decision support tools to
investors globally, including asset managers, banks, hedge funds and pension
funds. MSCI products and services include indices, portfolio risk and
performance analytics, and governance tools.
The company’s flagship product offerings are: the MSCI indices with
approximately USD 7 trillion estimated to be benchmarked to them on a
worldwide basis^1; Barra multi-asset class factor models, portfolio risk and
performance analytics; RiskMetrics multi-asset class market and credit risk
analytics; MSCI ESG (environmental, social and governance) Research screening,
analysis and ratings; ISS governance research and outsourced proxy voting and
reporting services; FEA valuation models and risk management software for the
energy and commodities markets; and CFRA forensic accounting risk research,
legal/regulatory risk assessment, and due‐diligence. MSCI is headquartered in
New York, with research and commercial offices around the world.
MSCI ESG Research products and services are designed to provide in-depth
research, ratings and analysis of environmental, social and governance-related
business practices to companies worldwide. ESG ratings, data and analysis from
MSCI ESG Research are also used in the construction of the MSCI ESG Indices.
MSCI ESG Research is produced by MSCI’s indirect wholly-owned subsidiary
Institutional Shareholder Services, Inc. (“ISS”). ISS is a Registered
Investment Adviser under the Investment Advisers Act of 1940.
^1As of June 30, 2011, based on eVestment, Lipper and Bloomberg data.
For further information on MSCI, please visit www.msci.com.
The material within and any linked material accessed via this communication is
directed to eligible counterparties and professional clients only and should
not be distributed to or relied upon by retail investors. For Asia Pacific
markets, it is directed to institutional investors, expert investors and
professional investors only and should not be relied upon by retail investors.
Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services
(Guernsey) Limited, and Northern Trust International Fund Administration
Services (Guernsey) Limited are licensed by the Guernsey Financial Services
Commission. Northern Trust International Fund Administrators (Jersey) Limited
and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the
Jersey Financial Services Commission. Northern Trust International Fund
Administration Services (Ireland) Limited, Northern Trust Securities Services
(Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are
regulated by the Central Bank of Ireland. Northern Trust Global Services
Limited has a Luxembourg Branch, which is authorised and regulated by the
Commission de Surveillance du Secteur Financier (CSSF). Northern Trust
Luxembourg Management Company S.A. is regulated by the Commission de
Surveillance du Secteur Financier (CSSF). Northern Trust Global Investments
Limited has a Netherlands branch, which is authorised by the Financial
Services Authority and subject to regulation in the Netherlands by the
Autoriteit Financiële Markten. Northern Trust Global Services Limited has a
Netherlands Branch, which is authorised and regulated in the Netherlands by De
Nederlandsche Bank. Northern Trust Global Investments Limited has a Sweden
branch, which is authorised by the Financial Services Authority and subject to
regulation in Sweden by the Finansinspektionen. Northern Trust Global Services
Ltd (UK) Sweden Filial is authorised by the Financial Services Authority and
subject to regulation by the Finansinspektionen. Northern Trust Global
Services Limited operates in Abu Dhabi as a Representative Office. Our
registered office is authorised and regulated by the Central Bank of the
United Arab Emirates. The Northern Trust Company operates in Australia as a
foreign authorised deposit-taking institution (foreign ADI) and is regulated
by the Australian Prudential Regulation Authority. The Northern Trust Company
has a branch in China regulated by the China Banking Regulatory Commission.
The Northern Trust Company of Hong Kong Limited is regulated by the Hong Kong
Securities and Futures Commission. Northern Trust Global Investments Japan,
K.K. is regulated by the Japan Financial Services Agency. The Northern Trust
Company has a Singapore Branch, which is a foreign wholesale bank regulated by
the Monetary Authority of Singapore. The Northern Trust Company operates in
Canada as The Northern Trust Company, Canada Branch, which is an authorised
foreign bank branch under the Bank Act (Canada). Trustee related services in
Canada are provided by the wholly owned subsidiary The Northern Trust Company,
Canada, an authorised trust company under the Trust & Loans Companies Act
(Canada). Deposits with The Northern Trust Company and its affiliates and
subsidiaries are not insured by the Canada Deposit Insurance Corporation.
IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment
concerns tax matters, it is not intended to be used and cannot be used by a
taxpayer for the purpose of avoiding penalties that may be imposed by law. For
more information about this notice, see
The S&P Equity Research Mutual Fund Excellence Awards is an annual awards
program designed to recognize those US mutual funds that have achieved the
highest overall ranking in their category on the most consistent basis during
the previous measurement year based on S&P's proprietary, quantitative
research methodology. Among the factors the research process seeks to identify
are consistently strong performance, high quality holdings as measured by S&P
STARS equity research, S&P Credit Ratings and S&P Quality Ranks and favorable
cost factors.. Northern Trust Global Sustainability Index Fund won Gold out of
three finalists in the Global/Domestic Equity—New and Notable category for
funds existing for three years or less. S&P used its own quantitative research
to select the winners. The selections were based on S&P ratings and rankings
for the year ended August 31, 2010. Past performance is not indicative of
Equity Risk: Equity securities (stocks) are more volatile and carry more risk
than other forms of investments, including investments in high-grade fixed
income securities. The net asset value per share of this Fund will fluctuate
as the value of the securities in the portfolio changes.
Index Fund Risk: The performance of the Fund is expected to be lower than that
of the Index because of Fund fees and expenses. It is important to remember
that there are risks associated with index investing, including the potential
risk of market decline, as well as the risks associated with investing in
International Risk: International investing involves increased risk and
MSCI World ESG Index is a free float-adjusted market capitalization-weighted
index comprised of large- and mid-cap developed market companies in North
America, Europe and Asia-Pacific. The Index holds a broad, diversified set of
global companies, selected based on regional sector ranking of environmental,
social and governance factors. It is not possible to invest directly in an
Please carefully read the prospectus and summary prospectus and consider the
investment objectives, risks, charges and expenses of Northern Funds before
investing. Call 800-595-9111 to obtain a prospectus and summary prospectus,
which contain this and other information about the fund.
Northern Funds are distributed by Northern Funds Distributors, LLC, not
affiliated with Northern Trust.
+44 (0) 207 982 2176
US, Canada & APAC Contacts:
+1 312 444 2388
Press spacebar to pause and continue. Press esc to stop.