Northern Trust Asset Management’s FlexShares® launches climate-focused exchange-traded funds for emerging markets in Europe

LONDON–(BUSINESS WIRE)–Northern Trust Asset Management’s FlexShares Exchange Traded Funds today announced the launch of two exchange-traded funds (ETFs) focused on the emerging markets climate: the FlexShares® Emerging Markets High Dividend Climate ESG UCITS ETF (QDFE) and the FlexShares® Emerging Markets with Low Climate Volatility ESG UCITS ETF (QVFE). These 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 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 this growth while leveraging our more than 30 years of expertise in sustainable investing.

The strategies will use Northern Trust Asset Management‘s Quality Factor Scoring with the aim of identifying companies that demonstrate strength in terms of profitability, management expertise and cash flow while maximizing the ESG exposure of the portfolio and reducing its 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-objective and multi-metric approach to assess quality on three dimensions: management effectiveness, 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 overall portfolio volatility, improve ESG score, improve carbon risk rating and reduce carbon emissions intensity.

“The addition of QDFE and QVFE will enhance our range of ETFs in Europe, providing investors with a diverse set of equity strategies within FlexShares’ growing range,” 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 meeting specific investor objectives with quantitative solutions. Looking to the next 10 years, we recognize the growing importance of sustainability to 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 business 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. The ETFs were launched today with listing on Euronext and Deutsche Börse and are available in five European countries: UK, Ireland, Germany, Sweden and -Low.

About flexible shares

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 that helps investors navigate changing market environments, so they can confidently achieve their long-term goals. With US$1.2 trillion in investor assets as of June 30, 2021, we understand investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take – in all market environments and all investment strategies. That’s why we combine sound capital markets 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 comprised 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 servicing, 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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