The fund has been designed to offer diversified exposure to China, Hong Kong, India, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand, said the firm.
Expressing his views on the launch of the new fund, Northern Trust Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) chief executive officer Wayne Bowers said 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.
"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 senior product strategist, asset management Mamadou-abou Sarr said, "Providing low cost market exposure is vital to investors in order to maximise investment returns over the long term."
Northern Trust manages a suite of funds, including the Northern Trust Pacific Ex-Japan Equity Index Fund, Northern Trust Japan Equity Index Fund and Northern Trust Emerging Markets Fund, offering exposure to Asia-Pacific markets.
According to a recent study by Northern Trust, it was found that institutional investors around the world have an increased focus on passive investments.
In Europe 45% investors said that passive funds make up more than 40% of their equity and fixed income assets, and nearly 57% expect passive strategies to cross that threshold by 2014.
Northern Trust Corporation offers investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals globally.
