Northern Trust is marking the fifth anniversary of the launch of FlexShares Exchange Traded Funds, which are designed to provide targeted investment outcomes and risk-adjusted returns.
Since the launch, the suite of ETFs has attracted more than USD10 billion in assets.
FlexShares debuted four funds in September 2011: FlexShares Morningstar US 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).
To commemorate the fifth anniversary of their launch, 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 17 October.
“Both advisers 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,” says Thomas. “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. 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 US asset management industry, with 68 new sponsors entering the market over the last five years.
In 2016, according to Morningstar, growth in the US market increased more than 18 per cent from the prior year to USD2.4 trillion in assets as of 31 August 2016. In the midst of this rapid growth, FlexShares has raised over USD10.3 billion in assets from September 2011 to August 2016.