ABN AMRO and Northern Trust Asset Management collaborate to make investment funds more sustainable

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As of 31 August 2018, Northern Trust Asset Management will apply environmental, social and governance (“ESG”) criteria to two investment funds that it manages for investors. This adjustment fits the ambition of ABN AMRO in relation to sustainability. ABN AMRO encourages clients to invest in sustainable investment products and services. At the end of 2017, sustainable investments by clients of ABN AMRO totalled € 10.2 billion. ABN AMRO aims to increase this amount to € 16 billion by the year 2020.

The ESG criteria will apply to the Northern Trust North America Equity Index UCITS FGR Fund and the Northern Trust Europe Equity Index UCITS FGR Fund. The new names of the funds will be the Northern Trust North America Custom ESG Index FGR Fund and the Northern Trust Europe Custom ESG Index FGR Fund. Assets under management as at 31 July 2018 for the involved funds total € 1.21 billion and € 1.41 billion, respectively.

Through the introduction of ESG criteria, the funds will no longer invest in companies not considered to meet certain criteria. This includes for example companies with “very severe” controversial activities, companies that derive revenue from the production of tobacco, or those that manufacture controversial weapons. The list of companies that are excluded because of these ESG-criteria is non-exhaustive and will be subject to change.

The investment objectives of the existing funds are to closely match the risk and return characteristics of the MSCI North America Index and MSCI Europe Index with net dividends reinvested. As of 31 August 2018, the updated investment objectives of the funds are to closely match the risk and return characteristics of the MSCI North America Custom ESG Index and MSCI Europe Custom ESG Index respectively. These are custom indices calculated and screened by MSCI, based on ESG criteria selected by Northern Trust Asset Management.

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