FlexShares Global Quality Real Estate Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Global Quality Real Estate IndexTM (Underlying Index).
1. Assess the current financial state of global real estate companies based on a quality factor
2. Maximize exposure to the quality, value and momentum factors
3. Utilize constraints in an effort to minimize the overall risk of the strategy
Though investment involves compensation for risk in the form of return, investors must:
This is particularly important in today’s environment, in which global markets are highly interconnected and experience more volatility in the form of price movement. Unexpected market shocks (or tail risks) are more common and change the view of normal investment distributions. The following risk solutions may complement investors' portfolios by providing a investments that seek to mitigate exposure to risk, while seeking to receive compensation for that risk.
The Northern Trust Global Quality Real Estate Index is designed to maximize exposure to quality, value and momentum factors, within a universe of companies operating in the real estate sector. The proprietary Northern Trust quality factor (henceforth referenced as the Northern Trust Quality Score or NTQS) is used to identify companies that exhibit strength in profitability, management expertise and cash flow, while value and momentum factors are included to help provide long term capital appreciation and also mitigate risk.