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Offered in a suite of products:

    Our Philosophy
    We believe investors should be compensated for the risks they take — in all market environments and any investment strategy.

    Overview

    Invest With a Holistic View of Sustainability

    We built this strategy to solve for the shift in investor objectives to include ESG-oriented goals. Our solution invests in companies with multiple facets of sustainability, including financial strength as well as a track record of managing ESG-related issues within their business models.

    Benefits

    Core Sustainable Portfolio That Uses Risk Efficiently

    Seeks Significant Carbon Footprint Reduction Versus the Broad Market

    Transparent, Cost-Effective Active Management

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    Principles of Investing

    Focus on Persistent Sources of Excess Return

    Our strategies target systematic sources of excess returns that have been proven over long periods.

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    Principles of Investing

    Seeking to Improve Risk-Adjusted Returns by Integrating a High-Quality Foundation

    The inclusion of a proprietary quality factor roots our security selection process in strong company fundamentals and has shown to potentially improve risk-adjusted returns over time.

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    Potential Improvements in Sharpe Ratio for Factor-Mimicking Portfolios Driven by Addition of the Quality Factor

    Source: Morningstar, Northern Trust Asset Management. December 31, 1996 to June 30, 2023. Past performance is no guarantee of future results. Index performance returns do not reflect any management fees, transaction costs, or expenses. It is not possible to invest directly in any index. Indexes are the property of their respective owners, all rights reserved.

    Principles of Investing

    Utilize a Systematic Approach to Maximize Efficiency

    Generating excess returns is important but risk and cost effectiveness are critical. We believe utilizing a systematic investment approach enables our strategies to consistently deliver on all three objectives.

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    A Systematic Approach Maximizes Efficiency

    Past performance is no guarantee of future results. Index performance returns do not reflect any management fees, transaction costs, or expenses. It is not possible to invest directly in any index. Indexes are the property of their respective owners, all rights reserved.

    Principles of Investing

    Invest at the Intersection of Quality and ESG to Increase Returns

    Companies with strong fundamentals that also earn high ESG ratings have historically outperformed their peers.

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    Annualized Returns of MSCI World Index by Quality and ESG Ratings*

    *MSCI World Index (February 2007 through June 2023) using MSCI ESG Rating methodology.

     

    Source Northern Trust Asset Management, MSCI, Factset. Returns represent annualized average returns of equally weighted portfolios formed as follows, ESG Leaders and Laggards represent companies with ESG Ratings of AAA/AA for Leaders and B/CCC for Laggards. High and Low Quality represents the top and bottom quintile of Northern Trust's Quality score, respectively. Returns are gross of dividends and withholding taxes. Returns include backtested performance.

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    How it Works

    Remove the Excessive ESG Risk and Worst Offenders

    Screen the starting universe for violation of international norms, controversial business involvement and poor management of key ESG-related issues.

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    How it Works

    Target High-Quality Companies

    Our approach identifies high-quality companies that exhibit prudent management of capital, strong profitability, and consistent cash flow generation relative to their sector peers.

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    How it Works

    Integrate Purposeful ESG Objectives During Portfolio Construction

    Lift the overall ESG profile and reduce the carbon footprint in a sector- and region-neutral portfolio

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    How it Works

    Optimize Portfolio to Balance Risk, Return and Cost Objectives

    A final optimization is conducted to verify the portfolio maximizes exposure to the high quality specific ESG characteristics and seeks to minimize any excess risks that don’t contribute to outperformance.

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    Who it's for

    Investors Seeking Sustainability and Long Term Outperformance

    High quality and highly-rated ESG stocks help deliver compelling risk-adjusted performance.

    Investors Seeking Carbon Exposure Management

    Target meaningful carbon footprint reduction and exposure to low carbon economy transition.

    Investors Seeking Cost-Effective Active Management

    A systematic approach enables access to proven drivers of excess return, cost-effectively.

    Portfolio

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    Team Expertise

    We measure success as achieving investor outcomes and delivering an exceptional client experience.

    Peter Zymali, CFA®

    Portfolio ManagerRead Bio

    Jeff Sampson, CFA®

    Portfolio ManagerRead Bio

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    Contact Us

    Interested in learning more about our investment strategies? 

    About Sustainable Investing

    At Northern Trust Asset Management (NTAM), we define Sustainable Investing as encompassing all of NTAM’s investment strategies and accounts that utilize values based and norms based screens, best-in-class and Environmental, Social & Governance (ESG) integration, or thematic investing that may focus on a specific ESG issue such as climate risk. NTAM’s Sustainable Investing includes portfolios designed by NTAM as well as those portfolios managed to client-defined methodologies or screens. As the data, analytical models and aforementioned portfolio construction tools available in the marketplace have evolved over time, so too has NTAM. NTAM’s Sustainable Investing encompasses strategies and client assets managed in accordance with client specified responsible investing terms (historically referred to as Socially Responsible), as well as portfolios that leverage contemporary approaches and datasets, including ESG analytics and ESG thematic investing.

     

    Environmental, Social and Governance (ESG) investing involves certain risks because the methodology of an underlying index selects and assigns weights to securities of issuers for nonfinancial reasons, a strategy may underperform the broader equity market or other strategies that do not utilize ESG criteria when selecting investments. The companies selected by an index provider as demonstrating ESG characteristics may not be the same companies selected by other index providers that use similar ESG screens. In addition, companies selected by an index provider may not exhibit positive or favorable ESG characteristics. Regulatory changes or interpretations regarding the definitions and/or use of ESG criteria could have a material adverse effect on a strategy’s ability to invest in accordance with its investment policies and/or achieve its investment objective

     

    This report is provided for informational purposes only and is not intended to be, and should not be construed as, an offer, solicitation or recommendation with respect to any transaction and should not be treated as legal advice, investment advice or tax advice. Recipients should not rely upon this information as a substitute for obtaining specific legal or tax advice from their own professional legal or tax advisors. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. Indices and trademarks are the property of their respective owners. Information is subject to change based on market or other conditions.

     

    Northern Trust Asset Management (“NTAM”) 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, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.

     

    All securities investing and trading activities risk the loss of capital. Each portfolio is subject to substantial risks including market risks, strategy risks, advisor risk, and risks with respect to its investment in other structures. There can be no assurance that any portfolio investment objectives will be achieved, or that any investment will achieve profits or avoid incurring substantial losses. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Risk controls and models do not promise any level of performance or guarantee against loss of principal. Any discussion of risk management is intended to describe NTAM’s efforts to monitor and manage risk but does not imply low risk. This information is general in nature and should not be construed as tax advice. Please consult a tax advisor or professional as to how this information may affect your particular circumstance.

     

    Not FDIC Insured | May Lose Value | No Bank Guarantee

    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.