ETFs Focused on Sustainability, Low-Volatility / Income with a Quality Overlay
LONDON–(BUSINESS WIRE)–Northern Trust Asset Management’s FlexShares Exchange Traded Funds today announced the launch of two climate focused exchange traded funds (ETFs): the FlexShares® Developed Markets Low Volatility Climate ESG UCITS ETF (QVFD) and the FlexShares® Developed Market High Dividend Climate ESG UCITS ETF (QDFD). The Funds represent FlexShares’ first ETFs available in Europe, with additional funds planned to launch in the coming months.
“We’re pleased to present the first FlexShares products in Europe, which reflect Northern Trust Asset Management’s three decades of experience in managing sustainability-focused investment strategies,” said Marie Dzanis, head of Europe, Middle East and Africa (EMEA). “Actively designed with the transparency of indexing, these two ETFs are built specifically to fit within EMEA investors’ evolving needs to help manage portfolio volatility and deliver income in a low yield environment while doing so with a focus on quality.”
Both strategies will utilize Northern Trust Asset Management’s proprietary Quality factor in an effort to identify companies that exhibit strength in profitability, management expertise and cash flow while maximizing the portfolio’s ESG exposure and reducing its carbon footprint.
- QVFD is a low volatility fund featuring stocks that exhibit lower overall absolute volatility cash flow, combined with quality and ESG to maximize quality, improve ESG ratings and create minimum variance. It tracks the iSTOXX® Northern Trust Developed Markets Low Volatility Climate ESG Index.
- QDFD is an income fund featuring stocks that exhibit a high potential to generate income, combined with quality and ESG to maximize quality, improve ESG ratings and enhance dividend yield. It tracks the iSTOXX® Northern Trust Developed Markets High Dividend Climate ESG Index.
FlexShares partnered with index provider STOXX to develop benchmarks for both QVFD and QDFD. As FlexShares expands its platform in Europe, it will be looking for various opportunities to develop new proprietary benchmarks best suited to its products and investor needs.
“FlexShares has been leveraging Northern Trust Asset Management’s investment capabilities since our initial US launch in 2011,” added Darek Wojnar, global head of Funds, ETFs & Managed Accounts. “As a global asset manager, we are pleased to extend our deep principle-based culture and collaborative approach with leading market expertise to complement our existing strategies in the European marketplaces.”
The ETFs launched today with a listing on both the London Stock Exchange and EuroNext and are available in five countries across Europe, including the UK, Ireland, Sweden, Germany and the Netherlands.
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$1.1 trillion of investor assets as of December 31, 2020, 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 December 31, 2020, Northern Trust had assets under custody/administration of US$14.5 trillion, and assets under management of US$1.4 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.
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 in available in English and the key investor information document is available in English, Dutch and German at www.flexshares.com/funds.
Prosek Partners on behalf of FlexShares & Northern Trust Asset Management
Northern Trust Europe, Middle East, Africa & Asia-Pacific Contacts:
+44 (0) 207 982 2176
Northern Trust US & Canada Contact:
+1 212 339 7288