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Northern Trust Asset Management Partners With Solactive to Launch Two Global Bond ESG Climate Index Funds

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LONDON & FRANKFURT AM MAIN--(BUSINESS WIRE)-- Northern Trust Asset Management (NTAM), one of the world’s leading investment managers, continues to expand its sustainable investment solutions with the launch of two global bond ESG funds and the corresponding indices, built in partnership with German index provider Solactive.

The NT Global Bond ESG Climate Index Fund and the NT Global 1-5 Years Bond ESG Climate Index Funds target issuers that the portfolio managers believe are better positioned to manage financially material environmental, social, and corporate governance (ESG) risks and a transition to a low carbon economy. In order to improve the ESG profile and reduce the carbon intensity of a fixed income portfolio, both of the funds apply distinct ESG approaches; one to corporate bonds and another to government bonds. The strategies leverage the same investment process but have different duration targets, giving investors the flexibility they need when managing bond portfolios in a rising interest rate environment.

Marie Dzanis, head of NTAM in EMEA, said: “We’re delighted to build on more than 30 years of experience in managing socially responsible portfolios, and combine it with our robust fixed income capabilities, to meet investors’ demand for ESG investment solutions that move beyond equity. At NTAM, we believe investors should be compensated for the risks they take – in all market environments and, as we see investors increasingly look to integrate sustainability characteristics into their bond portfolios, we have partnered with Solactive to offer strategies that we believe are a compelling solution to meet their needs.”

Timo Pfeiffer, chief markets officer of Solactive, comments: “In Partnering with NTAM, we designed indices that may offer suitable ways to diversify portfolios in all market environments with indices that target high sustainability standards. This demonstrates our expertise in incorporating cutting-edge exclusion standards into our fixed-income indices, taking us to the next level in sustainable investing. We are pleased to establish this partnership with NTAM.”

The NT Global Bond ESG Climate Index Fund and the NT Global 1-5 Years Bond ESG Climate Index Funds, used as benchmarks for the strategies, measure the performance of a global investment grade bond universe and integrates ESG scores and climate data into the government and corporate bonds within the index. Customized and using a broad-base universe consisting of around 25,000 bonds, the indices include bonds issued by central governments, government-related issuers, corporates, as well as securitized debt instruments, issued by both developed and emerging markets in accordance with Solactive’s Bond Market Classification framework. The Solactive Global Bond ESG Climate Index represents the full maturity curve; with the Solactive Global Bond 1-5 Year ESG Climate Index representing shorter maturity.

The NT Global Bond ESG Climate Index Fund and the NT Global 1-5 Years Bond ESG Climate Index Funds are available in Ireland, Denmark, Finland, Luxembourg, Sweden, UK and Netherlands.

About Solactive

Solactive is a leading provider of indexing, benchmarking, and calculation solutions for the global investment and trading community. Headquartered in Frankfurt and with offices in Hong Kong, Toronto, Berlin, and Dresden, we innovate and disrupt the status quo as the partner of choice for our clients.

The unique blend of our 250 staff’s expertise in data, data science, financial markets, and technology enables our clients’ continued success through the delivery of a superior experience, unique customization capabilities, and the best value for money available in the industry. With more than 20,000 indices calculated daily, we offer a full suite of solutions, including market-leading ESG and thematic indices.

As at January 2022, Solactive served approximately 500 clients across the world, with approximately US$250 billion invested in products linked to our indices. Solactive is registered with ESMA as a benchmark administrator and is supervised by the BaFin.

Disclaimer

The information in this document does not constitute tax, legal or investment advice and is not intended as a recommendation for buying or selling securities. Solactive AG and all other companies mentioned in this document are not responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.

Solactive AG, Platz der Einheit 1, 60327 Frankfurt am Main, Germany. Registered Office: Frankfurt am Main, Registration Court: Amtsgericht Frankfurt am Main, HRB: 79986, USt-IdNr.: DE 255 598 976. Management Board: Steffen Scheuble, Alexander Steiner, and Timo Pfeiffer, Head of Supervisory Board: Dr Felix Mühlhäuser.

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 a global presence with offices in 25 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2022, Northern Trust had assets under custody/administration of US$12.8 trillion, and assets under management of US$1.2 trillion. For more than 130 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 Twitter @NorthernTrust or Northern Trust Corporation 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.

About Northern Trust Asset Management

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently realize their long-term objectives. Entrusted with US$999.1 billion of investor assets as of September 30, 2022, 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 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, Belvedere 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.

DISCLOSURE

This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decisions. This material is directed to professional and eligible counterparties only and should not be relied upon by retail investors. The information is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Opinions and forecasts discussed are those of the author, do not necessarily reflect the views of Northern Trust and are subject to change without notice.

Investing involves risk- no investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

Northern Trust Asset Management (NTAM) is composed of Northern Trust Investments, Inc. (NTI), Northern Trust Global Investments Limited (NTGIL), Northern Trust Fund Managers (Ireland) Limited (NTFMIL), Northern Trust Global Investments Japan, K.K. (NTKK), NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Belvedere Advisors LLC, Northern Trust Asset Management Australia Pty Ltd and investment personnel of The Northern Trust Company of Hong Kong Limited (TNTCHK) and The Northern Trust Company (TNTC).© 2022 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A.

Issued in the United Kingdom by Northern Trust Global Investments Limited. Issued in the EEA by Northern Trust Fund Managers (Ireland) Limited.

Northern Trust Contacts:

Camilla Greene

+44 (0) 207 982 2176

Camilla.Greene@ntrs.com



Marcel Klebba

+44 (0) 207 982 1994

Marcel.Klebba@ntrs.com



http://www.northerntrust.com



Solactive Contacts:

Maria Seifert

+49 (69) 719 160-311

maria.seifert@solactive.com



http://www.solactive.com

Source: Northern Trust Asset Management

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