UCITS is a European regulatory standard for pooled investment funds that sets common rules on how they are run, what they can invest in, and how they protect individual investors. Think of it like a certified recipe and passport for retail funds: it assures basic safeguards such as diversification, liquidity and clear reporting, which helps investors compare options, reduces risk of surprise practices, and makes funds easier to buy across borders.
esgfinancial
ESG stands for Environmental, Social, and Governance, which are key factors investors consider when evaluating how sustainable and responsible a company is. It involves assessing how a company manages its impact on the environment, treats its employees and communities, and operates transparently and ethically. Investors use ESG criteria to identify businesses that align with their values and have the potential for long-term success.
proxy votingfinancial
Proxy voting is a process that allows investors to have their voting power on company decisions exercised by someone else if they cannot attend meetings in person. It ensures that their opinions are still represented, similar to authorizing someone else to vote on their behalf at an election. This helps investors influence company actions even when they cannot be physically present.
factor-based investingfinancial
An investment approach that builds portfolios by targeting measurable characteristics—called factors—such as cheapness, steady earnings, rising prices, or company size, rather than picking individual stocks by name. Think of it like choosing fruit by specific traits (ripeness, firmness) instead of by brand: it helps investors systematically tilt holdings toward qualities that have historically offered better returns or lower risk, and makes performance more predictable and easier to compare.
alternative datatechnical
Alternative data is information from non‑traditional sources—like satellite photos, online shopping and search trends, credit‑card or foot‑traffic counts, and sensor or app activity—used to gauge a company’s sales, supply chain, or market demand. It matters to investors because it can reveal rising or falling trends sooner than official reports, acting like a private weather radar that helps anticipate outcomes, though it requires careful interpretation to avoid noise or bias.
decarbonisationtechnical
Decarbonisation is the process of cutting the amount of carbon dioxide and similar greenhouse gases a company or economy produces, by switching to cleaner energy, improving efficiency, or capturing emissions. For investors it matters because it changes costs, regulatory exposure and future demand—like renovating a house to avoid fines and attract buyers, companies that decarbonise can reduce risk and access new markets while those that don’t may face higher costs or stranded assets.
quantitative strategiesfinancial
Quantitative strategies are investment approaches that use mathematical models, statistical analysis and computer algorithms to select securities, size positions and time trades. Think of them as following a detailed recipe or GPS route based on data rather than human guesswork; they matter to investors because they can process large amounts of information quickly, reduce emotional bias, and offer repeatable rules for risk control and performance that can complement or replace traditional, human-driven decision making.
carbon footprinttechnical
The carbon footprint measures the total greenhouse gas emissions a company causes directly and indirectly, expressed as a single tally of carbon dioxide-equivalent. Investors care because it’s like a company’s emissions “utility bill”: higher footprints can mean bigger future regulatory costs, reputational damage, and operational changes as the economy shifts to cleaner energy, all of which can affect profitability and long-term value.
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UCITS Funds Provide Climate Focused Core Equities Strategies
LONDON--(BUSINESS WIRE)--
Northern Trust Asset Management, a leading global investment manager with US$1.4 trillion in assets under management (as of March 31, 2026), today announced the launch of two actively managed UCITS funds, designed to pursue outperformance while efficiently managing climate transition-related risks and opportunities.
The NT World Multifactor Focus Select Fund seeks excess returns over a full market cycle, while the NT World Multifactor Select Fund strategy aims to deliver long-term capital growth. Both funds are actively managed using Northern Trust Asset Management’s proprietary value, quality, momentum and low volatility signals, employing financial, alternative and sustainable datasets to enable sources of returns in a risk-efficient manner.
Additionally, the fund strategies integrate sustainable considerations, including targeted reductions in carbon footprint and assessment of industry-specific climate risk and opportunities to aid security selection, whilst preserving factor content. The funds also encourage potential investors to focus on ESG practices and disclosures, via active engagement and proxy voting.
“These fund strategies combine the Northern Trust Asset Management quantitative investment team’s deep experience in factor-based investing, built over three decades, with our proprietary research into integration of meaningful decarbonisation and other climate-related criteria,” said Guido Baltussen, global head of quant strategies at Northern Trust Asset Management.
“In the Multifactor UCITS fund strategies we employ a multi-faceted approach to portfolio construction to actively manage alpha, investment risks, climate risks and costs. We recognise that continuous review and evolution of sustainable datasets and signals across our research, data science, sustainable investment and portfolio management teams is essential to deliver optimal investment and sustainability outcomes.”
Pedro Guazo, head of international and global head of responsible investing at Northern Trust Asset Management, said: “The climate transition remains a critical theme for investors, both in terms of seeking to mitigate associated portfolio risks, and considering the opportunities to support credible transition plans and climate solutions. We are pleased to further our range of climate-related solutions for clients across Europe, Middle East, Africa and Asia-Pacific with these funds.”
Northern Trust Asset Management manages US$47 billion in quantitative strategies across equities and fixed income, as of March 31, 2026.
About Northern Trust Asset Management
Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives. Entrusted with US$1.4 trillion in assets under management as of March 31, 2026 we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management to craft innovative and efficient solutions that seek to deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.
Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2026, Northern Trust had assets under custody/administration of US$18.6 trillion, and assets under management of US$1.8 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.
For Asia-Pacific (APAC) and Europe, Middle East and Africa (EMEA) markets, this information is directed to institutional, professional and wholesale clients or investors only and should not be relied upon by retail clients or investors.
