Recognising investors increased desire to be socially responsible while achieving investment objectives, Northern Trust has introduced the Northern Global Sustainability Index Fund.
The fund is a competitively priced mutual fund seeking long-term performance by investing in companies selected for their projected investment and social returns. The first to track a global sustainability index, the fund includes stocks in 24 developed markets, in each sector, that promote environmental, social and governmental responsibility. Northern Trust now offers a total of 39 no-load domestic and international retail mutual funds.
The Northern Global Sustainability Index Fund is the first to track the KLD Global Sustainability Index, a market capitalisation weighted index of large and mid-cap developed companies in North America, Europe and Asia-Pacific, launched in late 2007. The index includes 693 of the highest-ranked companies in each sector based on a comprehensive environmental, social and governance screening process. Stocks are selected for numerous social responsibility factors through qualitative and quantitative analysis. Compared to other socially responsible funds generally costing more than 150 basis points, the fund is competitively priced at 65 basis points with no sales charge.
Following the evolution of socially responsible investing, the funds sustainability strategy seeks to include companies that address the social and environmental needs of the present, without compromising the quality of life of future generations, rather than exclude companies referred to as “sin stocks” or those that do not meet set criteria of social responsibility. Because this emerging methodology does not prohibit investments in particular sectors, it is sector neutral and thus limits the risk associated with sector variance found in many traditional socially responsible investment vehicles.
“As investing and socially conscious philosophies continue to merge, we are pleased to be able to offer the first global sustainability index fund. This fund invests in the highest-ranked companies based on environmental, social and governance screening an approach that attempts to identify companies with long-term, sustainable value,” says Shaun Murphy, team leader of Global Index Management for Northern Trust Global Investments and the Funds manager.
The fund seeks to benefit from Northern Trusts nearly 25 years of experience managing socially responsible portfolios, including multiple approaches to incorporating environmental, social and governance factors, such as negative and positive screens, shareholder advocacy and best of sector stock collection among passive, active and tax-efficient investment strategies. Northern Trust currently manages more than $20 billion in socially screened assets.