Northern Trust Global Investments will offer an index fund tracking the Domini 400 Social index, which screens stocks for environmental, social and governance factors. The NTGI Socially Responsible Large Cap Equity Index Strategy begins with $20 million from clients and will be offered as a commingled fund, John O'Connell, Northern Trust vice president and director-institutional public relations for the Americas, said in an interview. NTGI will use a proprietary quantitative investment process to optimize performance in tracking the index, according to an NTGI statement.
The Domini 400 Social index screens companies for gambling, nuclear power, military weapons, alcohol, tobacco and firearms and favors for inclusion companies with exemplary records in human rights, employee relations, diversity, community relations, corporate governance, environmental management and product quality. The screening is overseen by KLD Research & Analytics.
NTGI already manages $20 billion in socially responsible funds, in both passive and active strategies, including about $8 billion in Sudan-free index funds and customized separate accounts, Mr. O'Connell said.
