FlexShares Core Select Bond Fund (BNDC) seeks total return and preservation of capital.
1. Construct a fixed income portfolio, based on Northern Trust's forecast, implementing active top‐down decisions primarily using passively managed, rules based fixed income sector ETFs.
2. Actively manage portfolio adjusting to potential changes in interest rate levels, the shape of the yield curve and credit spread relationships while emphasizing liquidity and diversification.
Predictable income generation is an essential pursuit as investors strive to meet financial obligations and achieve long-term goals. But each investor’s outcome is affected by individual factors like the stage of his or her lifecycle (i.e., accumulation versus retirement), plus macro factors like the rate of inflation or disinflation. Traditionally, income has been generated from variable sources like interest payments, dividends and capital gains, as well as guaranteed sources like annuities. Yet, traditional income sources have become less predictable as financial markets have become more global and dynamic. The following income generation solutions may complement investors’ portfolios by seeking to provide targeted and innovative sources of income to respond to dynamic market factors.