Northern Trust Makes Fee Reductions to Select FlexShares ETFs
Expense reductions consistent with investor-centric focus
Northern Trust today announced a reduction in the maximum annual management fee on certain FlexShares® Exchange Traded Funds,
reflecting a continued strategy that focuses on serving the needs of investors and their advisors.
“Our pricing strategy is consistent with our investor-centric value proposition,” said Shundrawn Thomas, head of Northern
Trust’s Funds and Managed Accounts Group. “FlexShares provides distinctive products at attractive price points as we seek to offer
compelling value for the fees we receive. The reduction of management fees for certain FlexShares ETFs reflects the ongoing
commitment to our value proposition.”
FlexShares’ innovative lineup is designed to provide targeted investment outcomes and risk-adjusted returns with funds that
address the four fundamental investor objectives of growing assets, managing risks, generating income and providing liquidity.
Twenty-three of the 24 FlexShares ETFs focus on alternatively- or factor-weighted index strategies, with an emphasis on providing
investment insights and thought leadership. This combination works together to enhance the overall value provided to investors.
“Discerning investors are principally concerned with value as opposed to a singular focus on fees,” Thomas said. “Our strategic
approach to pricing is largely informed by careful assessment of the needs and preferences of long-term investors.”
Details on the select funds with fee reductions effective Tuesday, November 1, 2016, include:
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Current
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New
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Maximum
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Maximum
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Annual
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Annual
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Management
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Management
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FlexShares ETFs
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Ticker
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Fee (%)
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Fee (%)
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FlexShares Morningstar® Global Upstream Natural Resources Index Fund |
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GUNR |
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0.48% |
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0.46% |
FlexShares Morningstar® U.S. Market Factor Tilt Index Fund |
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TILT |
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0.27% |
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0.25% |
FlexShares Morningstar® Developed Markets ex-US Factor Tilt Index
Fund |
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TLTD |
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0.42% |
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0.39% |
FlexShares Morningstar® Emerging Markets Factor Tilt Index Fund |
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TLTE |
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0.65% |
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0.59% |
FlexShares Currency Hedged Morningstar® DM ex-US Factor Tilt Index
Fund |
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TLDH |
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0.47% |
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0.44% |
FlexShares Currency Hedged Morningstar® EM Factor Tilt
Index Fund |
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TLEH |
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0.70% |
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0.64% |
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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 $10.4
billion in assets since September 2011 to September 2016.
For more information, please visit www.flexshares.com.
About FlexShares
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.
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 22 international locations in Canada, Europe, the Middle East and the
Asia-Pacific region. As of September 30, 2016 Northern Trust had assets under custody of US$6.7 trillion, and assets under
management of US$946 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 https://www.northerntrust.com/disclosures.
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.
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.
FlexShares iBoxx 3-Year Target Duration TIPS Fund (TDTT) and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF)
may 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. The Funds are subject to fluctuation of yield risk, income
risk, inflation protected security risk and interest rate/maturity risk. The Funds are non-diversified meaning the Funds’
performance may depend on the performance of a small number of issuers because the Funds may invest a large percentage of its
assets in securities issued by or representing a small number of issuers.
Duration is a measure of the sensitivity of a fixed income security’s price (or principal value) to a change in interest rates.
Duration is expressed as a number of years and allows bonds of different maturities and coupon rates to be directly compared. The
higher the duration, the greater the magnitude of price change as interest rates change. Modified adjusted duration (MAD) is an
estimate of the market duration of a specific TIPS investment. MAD provides a way for investors to compare the interest rate
sensitivity of TIPS to other fixed income securities, based on inflation expectations.
FlexShares Morningstar U.S. Market Factor Tilt Index Fund (TILT) is subject to concentration risk. The Fund's investments are
concentrated in the securities of issuers in a particular market, industry, sector or asset class. The Fund may be subject to
increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting
that market, industry, and sector or asset class. The Fund 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 Fund could lose more than the principal amount
invested.
FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) is subject to the global natural resource industry.
As the demand for or prices of natural resources increase, the Fund's equity investment generally would be expected to also
increase. Conversely, declines in demand for or prices of natural resources generally would be expected to cause declines in value
of such equity securities. Such declines may occur quickly and without warning and may negatively impact your investment in the
Fund.
FlexShares
Tom Pinto
212-339-7288
Tom.Pinto@ntrs.com
or
Doug Holt
312-557-1571
Doug.Holt@ntrs.com
www.flexshares.com
Follow Us on Twitter @FlexSharesETFs
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