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FlexShares Updates Corporate Bond Funds - SKOR and LKOR - with New Indices

FOR IMMEDIATE RELEASE

CHICAGO, April 30, 2020 -- Northern Trust's FlexShares® Exchange Traded Funds today announced new underlying indices for two of its bond funds, effective immediately. The Credit-Scored US Corporate Bond Index Fund (SKOR) will use the Northern Trust US Corporate Bond Quality Value Index and the Credit-Scored US Long Corporate Bond Index Fund (LKOR) has switched to the Northern Trust US Long Corporate Bond Quality Value Index. Both indices provide exposure to investment grade bonds with a focus on the quality and value factors. Current fund shareholders are not required to take any action as a result of these changes.

"At FlexShares, our mission is first and foremost to meet investor goals and we’re constantly evaluating how best to align our products with those objectives," said Darek Wojnar, Head of Funds and Managed Accounts at Northern Trust Asset Management. "In this low-yielding market environment, income generation and capital appreciation are critical for today's investors. We believe these needs can be most effectively met by prioritizing quality and value."

The underlying indices of the FlexShares' SKOR and LKOR funds are designed to optimize exposure to the quality and value factors by analyzing inputs such as valuation, spread, solvency, management efficiency and profitability. The eligible securities within each index are adjusted based on their effective duration and are subject to several constraints to manage systemic risk.

"By applying a factor-based approach to both our high-yield and investment grade funds, we're aiming to provide advisors and their clients with a more consistent experience across FlexShares' fixed-income suite," said Paulami Kar, Head of Product Strategy at Northern Trust Asset Management. "We believe a factor-based strategy focusing on quality and value could be an effective way to build a portfolio of investment grade bonds in the current market environment."

Fixed-income ETFs are increasingly attracting investor interest, with assets having surpassed $1 trillion globally in 2019. Since its inception in 2011, FlexShares, as of March 31, 2020, has accrued over $11.3 billion in total assets under management, with approximately $700 million in its fixed-income suite..

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. Follow us on Twitter @FlexSharesETFs.

About Northern Trust Asset Management

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently realize their long-term objectives. Entrusted with more than $900 billion of investor assets, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That's why we combine robust capital markets research, expert portfolio construction and comprehensive risk management to craft innovative and efficient solutions that deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect, and transparency.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.

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 a global presence with offices in 22 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2019, Northern Trust had assets under custody/administration of US$12.1 trillion, and assets under management of US$1.2 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website 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. Please read our global and regulatory information.

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.