Fund | Ticker | Stock Exchange |
FlexShares® Ready Access Variable Income Fund | RAVI | NYSE Arca, Inc. |
FlexShares® Core Select Bond Fund | BNDC | NYSE Arca, Inc. |
|
2 |
|
2 |
|
9 |
|
16 |
|
17 |
|
18 |
|
33 |
|
41 |
|
42 |
|
42 |
|
43 |
|
44 |
|
44 |
|
45 |
|
45 |
|
45 |
|
46 |
|
46 |
|
47 |
|
48 |
|
48 |
|
50 |
|
51 |
|
52 |
|
53 |
|
56 |
|
57 |
|
57 |
|
Back Cover |
|
Back Cover |
Management Fees | |
Distribution (12b-1) Fees | |
Other Expenses | |
Total Annual Fund Operating Expenses | |
Expense Reimbursement(1) | - |
Total Annual Fund Operating Expenses After Expense Reimbursement |
(1) |
1 Year | $ |
3 Years | $ |
5 Years | $ |
10 Years | $ |
• | Financial Sector Risk is the risk that the financial sector can be significantly affected by changes in interest rates, government regulation, the rate of corporate and consumer debt defaulted, price competition, and the availability and cost of capital, among other factors. |
• | Forward Foreign Currency Contracts Risk is the risk that, if forward prices increase, a loss will occur to the extent that the agreed upon purchase price of the currency exceeds the price of the currency that was agreed to be sold. |
One Year |
Five Year |
Since Inception of Fund |
Inception Date of Fund | |
Before Taxes | - |
|||
After Taxes on Distributions | - |
— | ||
After Taxes on Distributions and Sale of Shares | — | |||
Bloomberg 1-3 Month U.S. Treasury Bill Index* | — |
* |
Management Fees | |
Distribution (12b-1) Fees | |
Other Expenses | |
Acquired Fund Fees and Expenses(1) | |
Total Annual Fund Operating Expenses | |
Expense Reimbursement(2) | - |
Total Annual Fund Operating Expenses After Expense Reimbursement |
(1) | |
(2) | Northern
Trust Investments, Inc. (“NTI” or the “Investment Adviser”) has
contractually agreed to reimburse a portion of the operating expenses of
the Fund (other than Acquired Fund Fees and Expenses) to the extent the
“Total Annual Fund Operating Expenses” exceed 0.35%. This contractual
limitation may not be terminated before |
tual arrangements at any time if it determines that it is in the best interest of the Fund and its shareholders. |
1 Year | $ |
3 Years | $ |
5 Years | $ |
10 Years | $ |
• | Futures Contracts Risk is the risk that there will be imperfect correlation between the change in market value of the Fund’s securities and the price of futures contracts, which may result in the strategy not working as intended; the possible inability of the Fund to sell or close out a futures contract at the desired time or price; losses due to unanticipated market movements, which potentially are unlimited; and the possible inability of NTI to correctly predict the direction of securities’ prices, interest rates, currency exchange rates and other economic factors, which may make the Fund’s returns more volatile or increase the risk of loss. |
• | Swap Contracts Risk Swap contracts involve the risk that the counterparty with whom the Fund has entered into the agreement will default on its obligation to pay the Fund. While certain swaps are subject to mandatory central clearing, which is intended to reduce counterparty risk, these swaps are subject to the risk that a central clearinghouse will go into bankruptcy or become non-operational, and sometimes involve increased transaction costs. |
One Year |
Five Year |
Since Inception of Fund |
Inception Date of Fund | |
Before Taxes | - |
|||
After Taxes on Distributions | - |
— | ||
After Taxes on Distributions and Sale of Shares | - |
— | ||
Bloomberg U.S. Aggregate Bond Index* | - |
— |
* |
FlexShares® Ready Access Variable Income Fund |
FlexShares® Core Select Bond Fund | |
Asset-Backed and Mortgage-Backed Securities Risk | ✓ | ✓ |
Authorized Participant Concentration Risk | ✓ | ✓ |
Cash Transactions Risk | ✓ | |
Credit (or Default) Risk | ✓ | ✓ |
Debt Extension Risk | ✓ | ✓ |
Derivatives Risk | ✓ | ✓ |
Emerging Markets Risk | ✓ | |
Foreign Securities Risk | ✓ | ✓ |
Geographic Risk | ✓ | ✓ |
Hedging Risk | ✓ | |
Income Risk | ✓ | ✓ |
Interest Rate/Maturity Risk | ✓ | ✓ |
Leveraging Risk | ✓ | |
Liquidity Risk | ✓ | ✓ |
Management Risk | ✓ | ✓ |
Market Risk | ✓ | ✓ |
Market Trading Risk | ✓ | ✓ |
Model Risk | ✓ | |
Municipal Market Volatility Risk | ✓ | |
Prepayment (or Call) Risk | ✓ | ✓ |
Securities Lending Risk | ✓ | ✓ |
FlexShares® Ready Access Variable Income Fund |
FlexShares® Core Select Bond Fund | |
Sector Risk | ✓ | ✓ |
Underlying Fund Risk | ✓ | |
U.S. Government Securities Risk | ✓ | ✓ |
Valuation Risk | ✓ |
• | Financial Sector Risk. Companies in the U.S. and non-U.S. financials sector of the economy, including those in the banking industry, are often subject to extensive governmental regulation and intervention, which may adversely affect the scope of their activities, the prices they can charge and the amount of capital they must maintain. Governmental regulation may change frequently and may have significant adverse consequences |
for companies in the financial sector, including effects not intended by such regulation. The impact of recent or future regulation on any individual financial company, the banking industry or on the sector as a whole cannot be predicted. Certain risks may impact the value of investments in the financial sector more severely than those of investments outside this sector, including the risks associated with companies that operate with substantial financial leverage. Companies in the financial sector may also be adversely affected by increases in interest rates and loan losses, decreases in the availability of money or asset valuations, credit rating downgrades and adverse conditions in other related markets. Insurance companies, in particular, may be subject to severe price competition and/or rate regulation, which may have an adverse impact on their profitability. |
• | securities issued or guaranteed by the U.S. Government, its agencies or government sponsored enterprises; |
• | corporate debt securities of U.S. and non-U.S. issuers, including corporate commercial paper; |
• | mortgage-backed and other asset-backed securities; |
• | inflation-indexed bonds issued both by governments and corporations; |
• | bank capital and trust preferred securities; |
• | loan participations and assignments; |
• | bank certificates of deposit, fixed time deposits and bankers’ acceptances; |
• | debt securities issued by states or local governments and their agencies, authorities and other government sponsored enterprises; |
• | obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and |
• | obligations of international agencies or supranational entities. |
• | BBB or higher by S&P Global Rating (“S&P”); |
• | Baa3 or higher by Moody’s Investors Service, Inc. (“Moody’s”); |
• | BBB or higher by Fitch Ratings (“Fitch”); or |
• | BBB or higher by Dominion Bond Rating Service Limited (“Dominion”). |
Fund | Unitary
Management Fee (as a percentage of the Fund’s average daily net assets) |
FlexShares® Ready Access Variable Income Fund | 0.25% |
FlexShares® Core Select Bond Fund | 0.35% |
Dividends from Net Investment Income: | ||
Fund | Declared and Paid Quarterly |
Declared and Paid Monthly |
FlexShares® Ready Access Variable Income Fund | ✓ | |
FlexShares® Core Select Bond Fund | ✓ |
Approximate Value of a Creation Unit |
Creation Unit Size |
Standard Creation/ Redemption Transaction Fee |
Maximum Additional Variable Charge for Creations* |
Maximum Additional Variable Charge for Redemptions* | |
FlexShares® Ready Access Variable Income Fund | $1,889,000 | 25,000 | $175 | 3.00% | 2.00% |
FlexShares® Core Select Bond Fund | $651,000 | 25,000 | $ 0 | 3.00% | 2.00% |
* | As a percentage of the net asset value per Creation Unit, inclusive, in the case of redemption, of the standard redemption transaction fee. |
FlexShares® Ready Access Variable Income Fund | |||||
Year ended October 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, beginning of period | $76.29 | $75.89 | $75.48 | $75.61 | $75.56 |
PER SHARE | |||||
Investment Operations | |||||
Net Investment Income | 0.48(a) | 1.07(a) | 1.98(a) | 1.58(a) | 0.89(a) |
Net Realized and Unrealized Gain (Loss) | (0.22) | 0.57 | 0.41 | (0.24) | 0.00(g) |
Total from Operations | 0.26 | 1.64 | 2.39 | 1.34 | 0.89 |
Distributions | |||||
Net Investment Income | (0.52) | (1.23) | (1.98) | (1.47) | (0.84) |
From Net Realized Gains | (0.02) | (0.01) | — | — | — |
Total from Distributions | (0.54) | (1.24) | (1.98) | (1.47) | (0.84) |
Net Asset Value, end of period | $76.01 | $76.29 | $75.89 | $75.48 | $75.61 |
Total Return | |||||
Net Asset Value(d) | 0.34% | 2.18% | 3.21% | 1.80% | 1.18% |
Market Value (Unaudited)(e) | 0.35% | 2.17% | 3.18% | 1.91% | 1.06% |
RATIOS/SUPPLEMENT DATA | |||||
Ratios to Average Net Assets | |||||
Expenses | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% |
Expenses net of reimbursements | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% |
Net Investment Income before reimbursements | 0.62% | 1.41% | 2.61% | 2.09% | 1.17% |
Net Investment Income net of reimbursements | 0.63% | 1.41% | 2.62% | 2.10% | 1.18% |
Supplemental Data | |||||
Portfolio Turnover Rate(f) | 84% | 79% | 73% | 131% | 71% |
Net assets, end of period (thousands) | $374,339 | $469,201 | $275,097 | $211,350 | $162,557 |
FlexShares® Core Select Bond Fund | |||||
Year ended October 31, | For the period 11/18/16* through 10/31/17 | ||||
2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, beginning of period | $26.78 | $25.66 | $23.74 | $25.08 | $25.00 |
PER SHARE | |||||
Investment Operations | |||||
Net Investment Income | 0.46(a) | 0.51(a) | 0.73(a) | 0.63(a) | 0.55(a) |
Net Realized and Unrealized Gain (Loss) | (0.39) | 1.19 | 1.93 | (1.31) | 0.15 |
Total from Operations | 0.07 | 1.70 | 2.66 | (0.68) | 0.70 |
Distributions | |||||
Net Investment Income | (0.52) | (0.58) | (0.74) | (0.66) | (0.62) |
From Net Realized Gains | (0.11) | — | — | — | — |
Total from Distributions | (0.63) | (0.58) | (0.74) | (0.66) | (0.62) |
Net Asset Value, end of period | $26.22 | $26.78 | $25.66 | $23.74 | $25.08 |
Total Return(b) | |||||
Net Asset Value(d) | 0.26% | 6.69% | 11.38% | (2.73)% | 2.86% |
Market Value (Unaudited)(e) | 0.30% | 6.57% | 11.41% | (2.92)% | 3.19% |
RATIOS/SUPPLEMENT DATA | |||||
Ratios to Average Net Assets(c) | |||||
Expenses | 0.36%(h) | 0.36%(h) | 0.36%(h) | 0.36%(h) | 0.43%(h) |
Expenses net of reimbursements | 0.20%(h) | 0.20%(h) | 0.19%(h) | 0.16%(h) | 0.16%(h) |
Net Investment Income before reimbursements | 1.56% | 1.76% | 2.80% | 2.41% | 2.08% |
Net Investment Income net of reimbursements | 1.72% | 1.93% | 2.97% | 2.61% | 2.35% |
Supplemental Data | |||||
Portfolio Turnover Rate(b)(f) | 50% | 91% | 135% | 53% | 99% |
Net assets, end of period (thousands) | $126,517 | $109,123 | $26,299 | $38,583 | $3,762 |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | Per share amount is less than $0.005. |
(h) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
• | The SEC’s website at sec.gov (text-only) |
• | FlexShares® Trust’s website at flexshares.com |