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


LONDON–(COMMERCIAL THREAD) – Northern Trust Asset Management FlexShares Exchange Traded Funds today announced the launch of two exchange-traded funds (ETFs) focused on the climate of emerging markets: the FlexShares® Emerging Markets High Dividend Climate ESG UCITS ETF (QDFE) and the FlexShares® Emerging Markets Low Volatility Climate ESG UCITS ETF (QVFE). These strategies represent 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 investors should be compensated for the risks they take in all market environments. As we see growth opportunities in various regions of emerging markets, our newly launched ETFs are designed to capitalize on that growth while leveraging our 30+ year expertise in sustainable investing. ”

The strategies will use Northern Trust Asset Management‘s quality factor rating with the aim of identifying companies that exhibit strong profitability, management expertise and cash flow while maximizing the ESG exposure of the portfolio and reducing its portfolio. carbon footprint.

  • QDFE is designed to provide exposure to high-quality, dividend-paying emerging market equities while seeking to achieve ESG and climate-related improvements. It uses a robust, multi-optic and multi-metric approach to assess quality along three dimensions: management efficiency, profitability and cash flow.

  • QVFE is designed to provide exposure to a high-quality universe of emerging market companies that exhibit lower overall absolute volatility while seeking to achieve ESG and climate-related improvements. It aims to minimize the overall volatility of the portfolio, improve the ESG score, improve the carbon risk rating and reduce the intensity of carbon emissions.

“The addition of QDFE and QVFE will enhance our range of ETFs in Europe, providing investors with a diverse set of equity strategies within the growing range of FlexShares,” added Darek Wojnar, Global Head of Funds, ETFs and Managed Accounts at Northern Trust Asset Management. “Over the past decade in the United States (US), we have defined our place in the ETF industry by focusing primarily on achieving specific investor goals with quantitative solutions. Looking ahead to the next 10 years, we recognize the growing importance of sustainability for these goals and the need for ESG funds that can serve as a core portfolio across all asset classes. We believe this is a key area for growth in both Europe and the US as we position the company for continued success. ”

FlexShares has 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 serve as benchmarks for QDFE and QVFE, respectively. ETFs were launched today with a listing on Euronext and Deutsche Börse and are available in five European countries: UK, Ireland, Germany, Sweden and the Netherlands .

About FlexShares

FlexShares exchange traded funds are designed to pursue specific investment objectives through 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 who helps investors navigate changing market environments, so they can achieve their long-term goals with confidence. Entrusted with US $ 1.2 trillion in investor assets as of June 30, 2021, we understand that investing ultimately serves a more important purpose and believe that investors should be compensated for the risks they take – in all market environments and any investment strategy. That’s why we combine solid capital market research, expert portfolio construction and comprehensive risk management to design innovative and effective solutions that deliver targeted investment results. As committed 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 made up of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, KK, NT Global Advisors, Inc., 50 South Capital Advisors, LLC , Belvedere Advisors LLC and the investment staff 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 services, asset management and banking services to businesses, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 US states and Washington, DC, and 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 over 130 years, Northern Trust has distinguished itself as an industry leader for its 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 USA, incorporated with limited liability in the USA. Please read our global and regulatory information.


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