04 October 2017
Reporter: Theo Andrew

Northern Trust AM launches two ESG index funds

Northern Trust Asset Management (AM) is launching two environmental, social and governance (ESG) funds, enabling investors to incorporate ESG principles into their portfolios.

The Northern Trust World ESG Leaders Equity Index Fund and the Northern Trust Emerging Markets ESG Leaders Equity Index Fund will be managed by the MSCI ESG Leaders indices, and will enable investment into companies setting the standard in ESG criteria.

The MSCI World ESG Leaders Index comprises best-in-class and mid-cap companies in 23 developed markets, while the MSCI Emerging Markets ESG Leaders Index will consider similar companies in 24 emerging market countries.

The two funds will be the first in Europe to track the MSCI Leaders indices, in addition to a fund already available to US investors.

Factors including “involvement in controversial weapons, alcohol or tobacco” will be rated against ESG principles such as “human rights, rights of employees and consideration for recycling and renewable energy”, a company statement said.

According to Northern Trust AM, its current range of ESG Undertakings for the Collective Investment of Transferable Securities funds are valued at $10.5 billion, as of 31 August 2017.

Hazel McNeilage, managing director for Northern Trust Asset Management in Europe, the Middle East and Africa, said: “We see an increasing interest from passive investors in Europe to take their ESG investing a step further with best-in-class solutions and we believe these funds offer a compelling solution.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BMO adds nine assets to UK portfolio
23 October 2017 | London | Reporter: Theo Andrew
The properties are spread across the office (35.9 percent), industrial (34.5 percent), retail warehousing (22.5 percent) and retail sectors (7.1 percent), reflecting an initial yield of 4.8 percent
Kennedy Wilson Holdings completes $8 billion merger with European arm
20 October 2017 | California | Reporter: Theo Andrew
The $1.98 billion (£1.5 billion) deal equated to an offer of $15.49 (£11.74) per KWE share, a 20 percent premium on the $12.91 (£9.79) per share closing price on 21 April
Aviva acquires Bristol redevelopment
20 October 2017 | Bristol | Reporter: Becky Butcher
Aviva Investors has purchased the first phase of a redevelopment business park in Bristol for £30 million
Coyote names Rob Bould as non-executive director
19 October 2017 | London | Reporter: Theo Andrew
Rob Bould, who has 40 years of real estate experience, will help grow the data platform, which will track, manage and report the performance of real estate assets in real-time
Hammerson expands flagship Parisian shopping centre
19 October 2017 | Paris | Reporter: Theo Andrew
The 11,000-square metre property adjoins its Les Trois Fontaines centre, the firm’s recently refurbished flagship asset in Paris
SELF II reaches €500 million on third close
19 October 2017 | Paris | Reporter: Theo Andrew
The pan-European debt fund achieved the equity through institutional investors from France, Germany and Italy
Encore+ adds Dutch office for €50 million
18 October 2017 | Eindhoven | Reporter: Theo Andrew
The the pan-European open ended core-plus fund is co-managed by Aviva Investors and LaSalle IM, as fund manager and asset and transition manager, respectively