FlexShares launches Credit-Scored US Long Corporate Bond Index Fund

By Tali Rackner

Norfolk, Va., Sept. 24 ¨C FlexShares Exchange Traded Funds announced the launch of the FlexShares Credit-Scored US Long Corporate Bond Index Fund, a fixed-income portfolio consisting of corporate debt securities selected using a proprietary credit evaluation process, according to a press release.

The fund maintains a longer maturity, with securities featuring a maturity of more than 10 years.

The fund contains an accessible and efficient investment product, which provides exposure to U.S. corporate debt; an exclusion of illiquid and smaller issuers for improved liquidity and transparency; a proprietary credit score used to evaluate and rank the universe of issuers; optimization to maximize exposure to the credit score while maintaining a similar spread and duration to the universe; and an index-based strategy with competitive fees, FlexShares said.

"A combination of market structure and regulatory changes has caused investors to reassess their investment options for long-term credit exposure," Shundrawn A. Thomas, head of Northern Trust's funds and managed accounts group, said in the release.

"The FlexShares Credit©\Scored US Long Corporate Bond Index Fund provides investors with a contemporary approach to optimizing credit risk, with improved transparency and liquidity relative to legacy corporate bond benchmarks."

The fund¡¯s shares trade on the Nasdaq under the symbol ¡°LKOR.¡±

Chicago-based Northern Trust Investments, Inc. serves as the investment adviser to the fund.

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