LONDON--()--Northern Trust (Nasdaq: NTRS), the fourth largest index manager in the world¹, has launched The Northern Trust All Country Asia ex-Japan Equity Index Fund (the Fund) for institutional investors² seeking diversified exposure to companies in Asia’s developed and emerging markets, excluding Japan, and including India.
“For those who want to invest in the Asia-Pacific region the Fund complements our existing range of index funds, offering our clients maximum flexibility in meeting their beta exposure needs”
Northern Trust is one of the first asset managers to offer a traditional index fund that tracks this Index. The Fund’s investment objective is to closely match the risk and return characteristics of the MSCI All Country Asia Ex-Japan Index by investing in equities issued by, or related to, companies included in the Index. The Fund thereby provides broad exposure to China, Hong Kong, India, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. The inclusion of the emerging market of India is unusual for an Asian index fund.
“Employing a passive investment strategy to tap Asian companies may appeal to institutional investors around the world that are seeking portfolio diversification through transparent, risk-controlled and cost-effective broad exposure to Asian equity markets,” said Wayne Bowers, chief executive officer, Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC), asset management, at Northern Trust. “For those who want to invest in the Asia-Pacific region the Fund complements our existing range of index funds, offering our clients maximum flexibility in meeting their beta exposure needs,” said Bowers.
Northern Trust manages a suite of funds providing exposure to Asia-Pacific markets. These include the Northern Trust Pacific Ex-Japan Equity Index Fund, Northern Trust Japan Equity Index Fund and Northern Trust Emerging Markets Fund.
“Providing low cost market exposure is vital to investors in order to maximise investment returns over the long term,” said Mamadou-abou Sarr, senior product strategist, asset management, at Northern Trust. “At its core, our liquidity-driven philosophy has the objective of replicating the characteristics of the chosen benchmark while minimising transaction costs and preserving wealth throughout the process to ultimately benefit our clients,” said Sarr.
Recent Northern Trust research published in a white paper, Customised Beta: Changing Perspectives on Passive Investing, revealed that institutional investors around the world have an increased focus on passive investments. Approximately 45 percent of institutions in Europe reported that passive funds make up more than 40 percent of their equity and fixed income assets, and approximately 57 percent expect passive strategies to cross that threshold by 2014. In Asia, approximately one third reported passive allocations of more than 40 percent in equities. These findings were gleaned from a survey of 121 institutional investors around the world representing more than 2.5 million employees and more than US$500 billion in assets.
Northern Trust has a long, successful track record in indexing going back to 1973. It offers a comprehensive set of index management products and capabilities across the spectrum of asset classes, covering developed, emerging and frontier markets and incorporating equity and fixed income strategies that are available through commingled funds and segregated accounts. Northern Trust provides index portfolio management services from four global locations: Chicago, London, Tokyo and Hong Kong. Worldwide, as at 31st March 2012 Northern Trust had US$322.6 billion in index assets under investment management, out of a total of US$716.5 billion in assets under investment management.
¹ According to a Pensions & Investments magazine special report published in May 2012
² Not available to US investors
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2012, Northern Trust had assets under custody of US$4.6 trillion, and assets under investment management of US$716.5 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.
Asset Management at Northern Trust begins with listening and leads to answers beyond the expected for our clients. The multi-asset class investment management business is comprised of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., the investment advisor division of The Northern Trust Company and The Northern Trust Company of Connecticut and its subsidiaries which offer investment products and services to personal and institutional markets.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A, incorporated with limited liability in the U.S.
The Northern Trust Company, London Branch (reg. no. BR001960), Northern Trust Global Investments Limited (reg. no. 03929218) and Northern Trust Global Services Limited (reg. no. 04795756) are authorised and regulated by the Financial Services Authority.
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