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FlexShares Introduces Suite of Dividend-Focused Equity Funds



  FlexShares Introduces Suite of Dividend-Focused Equity Funds

Quality Dividend Index Funds help investors achieve income needs, participate
                              in capital growth

Business Wire

CHICAGO -- December 19, 2012

FlexShares® Exchange Traded Funds, sponsored and managed by Northern Trust
Corp., today introduced dividend-focused equity index funds to help investors
achieve their income needs while still participating in capital growth through
the equity market.

The exchange-traded funds – the Quality Dividend Index Fund, Quality Dividend
Defensive Index Fund and the Quality Dividend Dynamic Index Fund – seek to
deliver a portfolio of stocks that emphasize long-term capital growth and
income. They invest in quality companies that provide dividend income while
controlling for market risk.

The ETFs employ Northern Trust’s proprietary Dividend Quality Score, used for
many years in separately managed accounts. They also seek to replicate
Northern Trust's 1250 index, but target different levels of market volatility
or beta. They include:

  * FlexShares Quality Dividend Index Fund (QDF), which seeks to deliver a
    beta similar to that of the market, while mitigating sector, industry, and
    security concentration risks.
  * FlexShares Quality Dividend Dynamic Index Fund (QDYN), which seeks to
    deliver a beta greater than the market, while mitigating sector, industry,
    and security concentration risks.
  * FlexShares Quality Dividend Defensive Index Fund (QDEF), which strives to
    deliver a beta less than the market, while mitigating sector, industry,
    and security concentration risks.

“Our research shows that a high-quality, yield-focused equity position can
potentially act as a return stabilizer for a broader portfolio, mitigate risk
in volatile markets and provide higher dividend growth,” said Shundrawn
Thomas, head of Northern Trust's Exchange Traded Funds Group. “The new equity
funds are designed to outperform in a variety of market environments,
including upward- and downward-trending markets.”

For more information, please visit www.flexshares.com.

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;
interest rate / maturity risk; issuer; management; market; market trading; mid
cap stock; 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.

FlexShares Quality Dividend Index Fund is passively managed and uses a
representative sampling strategy to track its Underlying Index. Use of a
representative sampling strategy creates Tracking Risk where the Fund’s
performance could vary substantially from the performance of the Underlying
Index. Additionally, the Fund is at increased Dividend Risk, as the issuers of
the underlying stock might not declare a dividend, or the dividend rate may
not remain at current levels. The Fund is also at increased risk of Industry
Concentration, where it may be more than 25% invested in the assets of a
single industry. Finally, the Fund may also be subject to increased Volatility
Risk, where volatility may not equal the target of the Underlying Index.

FlexShares Quality Dividend Defensive Index Fund is passively managed and uses
a representative sampling strategy to track its Underlying Index. Use of a
representative sampling strategy creates Tracking Risk where the Fund’s
performance could vary substantially from the performance of the Underlying
Index. Additionally, the Fund is at increased Dividend Risk, as the issuers of
the underlying stock might not declare a dividend, or the dividend rate may
not remain at current levels. The Fund is also at increased risk of Industry
Concentration, where it may be more than 25% invested in the assets of a
single industry. Finally, the Fund may also be subject to increased Volatility
Risk, where volatility may not equal the target of the Underlying Index.

FlexShares Quality Dividend Dynamic Index Fund is passively managed and uses a
representative sampling strategy to track its Underlying Index. Use of a
representative sampling strategy creates Tracking Risk where the Fund’s
performance could vary substantially from the performance of the Underlying
Index. Additionally, the Fund is at increased Dividend Risk, as the issuers of
the underlying stock might not declare a dividend, or the dividend rate may
not remain at current levels. The Fund is also at increased risk of Industry
Concentration, where it may be more than 25% invested in the assets of a
single industry. Finally, the Fund may also be subject to increased Volatility
Risk, where volatility may not equal the target of the Underlying Index.

Beta is a statistical measure of the volatility, or sensitivity, of rates of
return on a portfolio or security compared to a market index. The beta for an
ETF measures the expected change in return of the ETF relative to the return
of a designated index. By definition, the beta of the Standard & Poor’s (S&P)
500 Index is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform
10% better than the S&P 500 Index in rising markets and 10% worse in falling
markets.

About FlexShares

FlexShares is a suite of ETF products designed to pursue real-world goals by
evolving the process of ETF development, providing flexibility for meeting
investor needs. FlexShares Funds are sponsored by Northern Trust. Individual
investors can purchase and sell shares through any brokerage firm, financial
advisor or online broker.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment
management, asset and fund administration, banking solutions and fiduciary
services for corporations, institutions and affluent individuals worldwide.
Northern Trust, a financial holding company based in Chicago, has offices in
18 U.S. states and 16 international locations in North America, Europe, the
Middle East and the Asia-Pacific region. As of September 30, 2012, Northern
Trust had assets under custody of US$4.8 trillion, and assets under investment
management of US$749.7 billion. For more than 120 years, Northern Trust has
earned distinction as an industry leader in combining exceptional service and
expertise with innovative products and technology. For more information, visit
www.northerntrust.com or follow us on Twitter @NorthernTrust.

Contact:

Media Contacts:
Northern Trust Corp.
Doug Holt, 312-557-1571
Doug_Holt@ntrs.com
or
Michael Burdeen, 312-240-3152
Michael.Burdeen@Edelman.com
or
http://www.flexshares.com
Follow Us on Twitter @FlexSharesETFs
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