FlexShares Morningstar US Market Factor Tilt Index Fund (TILT)

Overview

The company operates an investment fund designed to track the performance of selected companies that show higher exposure to size and value factors when compared to the broader U.S. market. This approach targets entities across a wide range of market capitalizations, including large-, mid-, small-, and micro-cap companies, ensuring a diversified portfolio which aligns with the goals of investors seeking to capitalize on these specific market segments. The fund commits to investing a minimum of 80% of its total assets in securities from its indexed companies, ensuring a substantial alignment with the investment strategy outlined, while also engaging in securities lending to potentially enhance its returns.

Products and Services

• Structured Investment Fund

  This product aims to mirror the performance of a meticulously selected group of companies that exhibit a higher propensity towards size and value factors compared to the Morningstar U.S. Market Index. By focusing on these characteristics, the fund strives to offer investors a path to potentially higher returns through a strategy that emphasizes diversification across various market capitalizations and a disciplined investment in securities that meet the fund’s strict criteria.

• Securities Lending Program

  As part of its broader investment strategy, the company engages in a securities lending program. This entails lending out securities to qualified third parties in exchange for collateral, an approach that can generate additional income for the fund. This collateral is typically held in cash or cash-equivalent assets and aims to provide a layer of security for the lent-out securities, thereby aligning with the fund’s risk management principles while striving to enhance overall fund performance.