Commemorates Milestone with NYSE Bell Ringing....
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Northern Trust announced the fifth anniversary of the launch of FlexShares® Exchange Traded Funds, designed to provide targeted investment outcomes and risk-adjusted returns. Since the launch, the suite of ETFs has attracted more than $10 billion in assets.
FlexShares debuted four funds in September 2011: FlexShares Morningstar U.S. Market Factor Tilt Index Fund (TILT), FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR), FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF).
The first four funds are part of FlexShares' innovative lineup with 23 of 24 funds in alternatively weighted and factor weighted index ETF strategies. To commemorate the five-year mark for FlexShares, Shundrawn Thomas, head of Northern Trust’s Funds and Managed Accounts Group, and other members of the FlexShares team are scheduled to ring the opening bell at the New York Stock Exchange (NYSE) on Oct. 17.
“Both advisors and institutional investors have been drawn to the unique FlexShares approach, called ‘Flexible Indexing,’ which spans the entire process from concept and index construction through product development and fund management,” Thomas said. “Our investor-centric approach differentiates FlexShares: We focus on the fundamental investor objectives of growing assets, managing risks, generating income and providing liquidity.
“Investors possess real goals,” he said. “We have always started with those fundamental investment objectives because that’s what matters. We seek to provide targeted investment solutions that do not simply track indices, but deliver outcomes.”
ETFs are among the fastest growing product categories in the U.S. asset management industry, with 68 new sponsors entering the market over the last 5 years. In 2016, according to Morningstar, growth in the U.S. market increased more than 18 percent from the prior year to $2.4 trillion in assets as of Aug. 31, 2016. In the midst of this rapid growth, FlexShares has raised over $10.3 billion in assets from September 2011 to August 2016.
Details on the four funds celebrating their five-year anniversary include:
FlexShares® Morningstar® Global Upstream Natural Resources Index Fund (GUNR)
The Fund tracks the Morningstar® Global Upstream Natural Resources Index which seeks investment results through the identification of upstream natural resources equities based on a Morningstar industry classification system while balancing exposure to three traditional and two nontraditional natural resource sectors (30 percent each in Agriculture, Energy, and Metals, and 5 percent each in Timber and Water).
FlexShares® Morningstar® U.S. Market Factor Tilt Index Fund (TILT)
The Fund tracks the Morningstar® U.S. Market Factor Tilt Index which seeks to improve absolute total return by “tilting” the portfolio to the small-cap and value segments of the U.S. equity market while providing exposure to 99.5 percent of the investable market and minimizing turnover.
FlexShares® iBoxx® 3-Year Target Duration TIPS Index Fund (TDTT)
The Fund tracks the iBoxx® 3-Year Target Duration TIPS Index which seeks to provide investment results through combining the inflation hedging attributes of TIPS with duration management while investing in maturities from 1 to 10 years to reach a modified adjusted duration of approximately 3 years.
FlexShares® iBoxx® 5-Year Target Duration TIPS Index Fund (TDTF)
The Fund tracks the iBoxx® 5-Year Target Duration TIPS Index which seeks to provide investment results through combining the inflation hedging attributes of TIPS with duration management while investing in maturities from 3 to 20 years to reach a modified adjusted duration of approximately 5 years.