FlexShares® Exchange Traded Funds, sponsored and managed by Northern Trust, today introduced FlexShares Real Asset Allocation Index Fund (NASDAQ:ASET), a passively managed ETF that seeks to provide exposure to real assets by investing in three stand-alone FlexShares ETFs. The component ETFs are global products comprised of equity securities and each tracks an innovative index focused on infrastructure, real estate and natural resource investments.
The FlexShares® Real Asset Allocation Index Fund features:
- Innovative ETF strategy offers exposure to a broad mix of real asset classes to investors seeking an optimized approach within a turn-key real asset solution
- Applies a proprietary optimization to the three underlying FlexShares funds in an effort to minimize the volatility of returns and lower risk in the fund
- An index-based strategy with competitive fees that addresses investor goals of risk management, income and capital appreciation objectives
"Institutional investors and independent advisors are increasingly turning to real assets such as natural resources, real estate and infrastructure for portfolio diversification and risk management," said Shundrawn A. Thomas, head of Northern Trust's Funds and Managed Accounts Group. "The FlexShares Real Asset Index Fund delivers an optimized mix of innovative real asset strategies in a simple index-based solution."
The new FlexShares fund features exposure to real assets by investing in three FlexShares ETFs including FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR), FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA) and FlexShares Global Quality Real Estate Index Fund (GQRE). For investors with a core real assets allocation, this fund may help address their desire to inflation hedge, provide enhanced diversification and help meet income needs.
For more information, please visit www.flexshares.com.
Before investing, carefully consider the FlexShares investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest.
Foreside Fund Services, LLC, distributor.
FlexShares Exchange Traded Funds are designed to pursue specific investment goals across both passive and active strategies. FlexShares offers differentiated ETF strategies that improve and simplify the investment decision process for the long-term investor. For more information, please visit flexshares.com. Follow us on Twitter @FlexSharesETFs.
About Northern Trust
Northern Trust Corporation (Nasdaq:NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 20 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2015, Northern Trust had assets under custody of US$6 trillion, and assets under management of US$887 billion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at http://www.northerntrust.com/disclosures.
An investment in FlexShares is subject to numerous risks, including possible loss of principal. Fund returns may not match the return of the respective indexes. The Funds are subject to the following principal risks: asset class; commodity; concentration; counterparty; currency; derivatives; dividend; emerging markets; equity securities; fluctuation of yield; foreign securities; geographic; income; industry concentration; inflation-protected securities; infrastructure-related companies; interest rate / maturity risk; issuer; large cap; management; market; market trading; mid cap stock; MLP; momentum; natural resources; new funds; non-diversification; passive investment; privatization; small cap stock; tracking error; value investing; and volatility risk. A full description of risks is in the prospectus.
In addition, the Funds are subject to commodity exposure risk, the risk of investing in economies that are susceptible to fluctuations in certain commodity markets. The Funds enter into foreign currency forward contracts designed to offset the Funds' currency exposure of non-U.S. dollar denominated securities included in the Underlying Index against the U.S. dollar, which may not be successful. Investments in foreign and emerging market securities involve certain risks such as currency volatility, political and social instability and reduced market liquidity. The Funds' investments are concentrated in the securities of issuers in a particular market, industry, sector or asset class. The Funds may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that market, industry, sector or asset class. The Funds may also invest in derivative instruments. Changes in the value of the derivative may not correlate with the underlying asset, rate or index and the Funds could lose more than the principal amount invested.