Spotlight on Dr Michael Hunstad, Deputy CIO & CIO Global Equities, Northern Trust Asset Management
Global Thought Leader Spotlight
Dr Michael Hunstad, Deputy CIO & CIO Global Equities, Northern Trust Asset Management
In my role as the Deputy CIO and CIO of Global Equities, at Northern Trust Asset Management I have oversight for all equity portfolio management, research and trading activities including quantitative, index and tax-advantaged strategies. Additionally, I assist with the development of investment vision, strategy portfolio construction and risk management framework for the firm’s broad investment platform.
Q. Investors are focused on reducing carbon emissions in their equities allocations, what are you seeing in the global race to net zero?
A. Investors seeking to mitigate climate-change risk have traditionally focused on de-carbonisation by reducing exposure to companies with relatively high carbon emissions or fossil fuel reserves. While these strategies have reduced carbon exposures, they can bring unintended risks. We think investors need to take a more nuanced view to prevent sector biases, low-quality financial fundamentals, and poor ESG performance.
Q. In your view how can investors construct a healthy, low carbon portfolio?
Investors can take a more holistic, forwarding-looking approach by focusing on proven sources of returns such as high-quality fundamentals and balancing ESG integration with portfolio construction. In doing so, investors can attain several goals around risk, return and sustainability. Furthermore, this could help investors improve consistency in financial and ESG performance throughout their low-carbon transition. We share more about how we approach the benefits of adding forward-looking ESG metrics, and the role of the Quality factor for a holistic view of sustainability in our recent research report ‘Investing at the Intersection of Profitability and ESG’.
Michael will be presenting at Global Investment Institute’s upcoming Equities Investment Forum, taking place on Wednesday, 6 September 2023 at the Westin Melbourne, Victoria.
To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.
Dr Michael Hunstad, Deputy CIO & CIO Global Equities, Northern Trust Asset Management
Michael is deputy chief investment officer and chief investment officer of global equities for Northern Trust Asset Management. He is a member of the Asset Management Executive Group and has oversight of all equity portfolio management, research and trading activities including quantitative, index and tax-advantaged strategies. Additionally, he assists with the development of investment vision, strategy portfolio construction and risk management framework for the firm’s broad investment platform.
Previously, Michael was Head of Quantitative Strategies where he was responsible for leading Northern Trust Asset Management’s factor based research, portfolio management and product development programs. Before joining Northern Trust, he was head of research at Breakwater Capital, an algorithmic trading firm and hedge fund. Prior to that role, he was head of quantitative asset allocation at Allstate Investments, LLC and a quantitative analyst with a long-short equity hedge fund.
Michael has also served as an adjunct professor at the Illinois Institute of Technology. Michael holds a Ph.D. in mathematics, an MBA in finance, an M.A. in econometrics and a bachelor's degree in economics.
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Disclaimer
The views expressed in this publication are solely those of the individual and do not reflect those of their employer organisation. These views should not be relied on as research or investment advice regarding any stock and are subject to change. There is no guarantee that any forecasts made will come to pass. Forecasts are subject to numerous assumptions, risks, and uncertainties, which change over time, and the individual undertakes no duty to update any such forecasts. International investing may involve risk of capital loss from unfavourable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations.
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