LKOR Profile
The FlexShares Credit-Scored US Long Corporate Bond Index Fund is designed to provide investors with exposure to a diversified portfolio of long-term, investment-grade corporate bonds denominated in U.S. dollars. The fund aims to deliver higher total returns compared to the broader investment-grade corporate bond market. It does this by tracking an index that focuses on longer maturity bonds, which may offer the potential for increased yield and capital appreciation relative to the overall market.
The underlying index utilized by the fund is constructed to reflect the performance of a broad spectrum of U.S. corporate bonds with longer maturities, specifically targeting those with high credit quality. This index is designed to outperform the Northern Trust US Investment Grade Long Corporate Bond Index, also known as the "Parent Index," which serves as a benchmark for the general investment-grade corporate bond market. By focusing on bonds that are scored based on their creditworthiness, the index aims to enhance returns through strategic selection of higher-quality securities.
The fund generally allocates at least 80% of its total assets to the securities included in its underlying index. This investment strategy is intended to closely replicate the performance of the index, thereby providing investors with exposure to a targeted segment of the corporate bond market. The focus on longer-duration bonds is particularly suitable for investors seeking higher yields and potential capital gains, while still maintaining investment-grade credit quality.
Managed by FlexShares, a division of Northern Trust, the fund benefits from the firm's extensive expertise in managing fixed-income investments. FlexShares applies a disciplined approach to portfolio management, leveraging its robust credit research and risk assessment capabilities to enhance the funds performance. By maintaining a rigorous focus on credit quality and long-term bonds, the FlexShares Credit-Scored US Long Corporate Bond Index Fund aims to offer investors a refined tool for achieving superior returns in the corporate bond sector.
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