Northern Trust Asset Management’s FlexShares® Launches Emerging Markets Climate-Focused Exchange Traded Funds in Europe

Rhea-AI Summary

Northern Trust Asset Management has launched two new Emerging Markets climate-focused exchange traded funds (ETFs): the FlexShares Emerging Markets High Dividend Climate ESG UCITS ETF (QDFE) and the FlexShares Emerging Markets Low Volatility Climate ESG UCITS ETF (QVFE). These ETFs aim to enhance sustainable investing opportunities in Europe, focusing on high-quality, dividend-paying stocks and lower volatility options in emerging markets. The products leverage Northern Trust's extensive expertise in sustainable investing and are now available on major European exchanges.

Positive

• Launch of two climate-focused ETFs enhances Northern Trust's sustainable investing product lineup.
• Utilizes Quality factor scoring to identify strong companies, improving ESG exposure and reducing carbon footprint.
• ETFs are designed to capitalize on growth opportunities in emerging markets, appealing to sustainability-focused investors.
• Launch on multiple European exchanges increases product accessibility.

Negative

• None.

Second Launch in European ETF Offering Focuses on Emerging Markets Sustainability with Quality Low-Volatility / Income

LONDON--(BUSINESS WIRE)-- Northern Trust Asset Management’s FlexShares Exchange Traded Funds today announced the launch of two Emerging Markets climate-focused exchange traded funds (ETFs): the FlexShares^® Emerging Markets High Dividend Climate ESG UCITS ETF (QDFE) and the FlexShares^® Emerging Markets Low Volatility Climate ESG UCITS ETF (QVFE). The strategies are the second launch of FlexShares’ ETF offerings in Europe.

"We are proud to expand our Environmental, Social and Governance (ESG) product offerings in Europe,” said Marie Dzanis, head of Northern Trust Asset Management for Europe, Middle East and Africa (EMEA). “We believe that investors should be compensated for the risks they take in all market environments. As we see growth opportunities throughout various regions in emerging markets, our newly launched ETFs are designed to capitalize on this growth while leveraging our more than 30 years of sustainable investing expertise.”

The strategies will utilize Northern Trust Asset Management’s Quality factor scoring in an effort to identify companies that exhibit strength in profitability, management expertise and cash flow while also maximizing the portfolio’s ESG exposure and reducing its carbon footprint.

• QDFE is designed to offer exposure to high-quality, dividend paying emerging market stocks while seeking to achieve ESG and climate related improvements. It utilizes a robust, multi-lens, multi-metric approach to assess quality across three dimensions: management efficiency, profitability and cash flow.
• QVFE is designed to offer exposure to a high-quality universe of emerging markets companies that exhibit lower overall absolute volatility while seeking to achieve ESG and climate-related improvements. It aims to minimize overall portfolio volatility, improve ESG score, improve carbon risk rating and reduce carbon emissions intensity.

“The addition of QDFE and QVFE will enhance our ETF suite in Europe, providing investors a diverse set of equity strategies within the growing FlexShares lineup,” added Darek Wojnar, global head of Funds, ETFs & Managed Accounts at Northern Trust Asset Management. “For the past decade in the United States (US), we’ve defined our place in the ETF industry through our primary focus on meeting specific investor objectives with quantitative solutions. Looking ahead to the next 10 years, we recognize the growing importance of sustainability to those objectives and the need for ESG funds that can serve as a core holding across asset classes. We believe this is a key area for growth both in Europe and the US as we position the business for continued success.”

FlexShares partnered with index provider Qontigo to develop the iSTOXX Northern Trust Emerging Markets High Dividend Climate ESG Index and the iSTOXX Northern Trust Developed Markets Low Volatility Climate ESG Index, which act as benchmarks for QDFE and QVFE, respectively. The ETFs launched today with a listing on the Euronext exchange and Deutsche Börse and are available in five countries across Europe: the UK, Ireland, Germany, Sweden, and the Netherlands.

About FlexShares

FlexShares Exchange Traded Funds are designed to pursue specific investment goals across both passive and active strategies. FlexShares offers differentiated ETF strategies that can improve and simplify the investment decision process for the long-term investor. Please visit our website or connect with us on our LinkedIn page.

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$1.2 trillion of investor assets as of June 30, 2021, 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 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 to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2021, Northern Trust had assets under custody/administration of US$15.7 trillion, and assets under management of US$1.5 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Please read our global and regulatory information.

IMPORTANT INFORMATION

This material is directed to eligible counterparties and professional clients only and is not intended for retail clients. For Asia-Pacific markets, it is directed to expert, institutional, professional and wholesale investors only and should not be relied upon by retail clients or investors. For legal and regulatory information about our offices and legal entities visit flexshares.com/disclosures.

Information contained herein has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Information is only current as of the date stated and is subject to change without notice. Fund performance data provided herein should not be relied upon as a basis for investment decisions; performance data may be revised. This information does not constitute a recommendation for any investment strategy or product described herein. This information is not intended as investment advice and does not take into account an investor’s individual circumstances. The prospectus is available in English and the key investor information document is available in English, Dutch and German here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210926005037/en/

Northern Trust

Europe, Middle East, Africa & Asia-Pacific Contacts:

Camilla Greene

+44 (0) 207 982 2176

Camilla_Greene@ntrs.com

Northern Trust US & Canada Contact:

Tom Pinto

+1 212 339 7288

Tom_Pinto@ntrs.com

Source: FlexShares

FAQ

What are the newly launched ETFs by Northern Trust (NTRS)?

Northern Trust has launched the FlexShares Emerging Markets High Dividend Climate ESG UCITS ETF (QDFE) and the FlexShares Emerging Markets Low Volatility Climate ESG UCITS ETF (QVFE).

When were the new ETFs launched by Northern Trust (NTRS)?

The new ETFs were launched on September 26, 2021.

Which markets do the new Northern Trust ETFs focus on?

The new ETFs focus on emerging markets with an emphasis on sustainability and climate-related improvements.

Where can the new ETFs by Northern Trust (NTRS) be traded?

The ETFs are listed on the Euronext exchange and Deutsche Börse and are available in the UK, Ireland, Germany, Sweden, and the Netherlands.

What is the investment strategy for QDFE and QVFE ETFs?

QDFE targets high-quality, dividend-paying emerging market stocks while QVFE focuses on lower overall volatility within a high-quality universe.