FlexShares Ready Access Variable Income Fund

The fund seeks maximum current income consistent with the preservation of capital and liquidity by investing in companies outside the United States.

The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests significantly in a non-diversified portfolio of fixed-income instruments, including bonds, debt securities and other similar instruments issued by U.S. and non-U.S. public and private sector entities.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund invests in investment grade debt securities.

In addition, the fund may invest without limitation, in fixed-income securities and instruments of foreign issuers in developed and emerging markets, including debt securities of foreign governments.

Also, the fund may invest more than 25% of its net assets in securities and instruments of issuers in a single developed market country.

The fund may invest up to 20% of its net assets in fixed-income securities and instruments of issuers in emerging markets.

The fund may invest, without limitation, in mortgage- or asset-backed securities, including to-be-announced transactions.

However, the fund will not invest more than 10% of its net assets in non-agency mortgage or asset-backed securities.

Additionally, the fund may lend securities representing up to one-third of the value of its net assets.

The fund is non-diversified, and may invest more of its assets in fewer issuers than diversified funds.