Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22555
FlexShares Trust
(Exact name of registrant as specified in charter)
50 South LaSalle Street
Chicago, Illinois 60603
(Address of principal executive offices) (Zip code)
Diana E. McCarthy, Esq.
Drinker Biddle & Reath LLP
One Logan Square, Ste. 2000
Philadelphia, Pennsylvania 19103-6996
(Name and Address of Agent for Service)
with a copy to:
Ann Marie Halter
Craig R. Carberry, Esq.
Northern Trust Investments, Inc.
50 South LaSalle Street
Chicago, Illinois 60603
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: (800) 595-9111
Date of fiscal year end: October 31
Date of reporting period: April 30, 2017
Table of Contents
Item 1. Reports To Stockholders.
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
Table of Contents
FlexShares® Trust
Semiannual Report
April 30, 2017
FlexShares® Morningstar US Market Factor Tilt Index Fund
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund
FlexShares® US Quality Large Cap Index Fund
FlexShares® STOXX® US ESG Impact Index Fund
FlexShares® STOXX® Global ESG Impact Index Fund
FlexShares® Morningstar Global Upstream Natural Resources Index Fund
FlexShares® STOXX® Global Broad Infrastructure Index Fund
FlexShares® Global Quality Real Estate Index Fund
FlexShares® Real Assets Allocation Index Fund
FlexShares® Quality Dividend Index Fund
FlexShares® Quality Dividend Defensive Index Fund
FlexShares® Quality Dividend Dynamic Index Fund
FlexShares® International Quality Dividend Index Fund
FlexShares® International Quality Dividend Defensive Index Fund
FlexShares® International Quality Dividend Dynamic Index Fund
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund
FlexShares® Disciplined Duration MBS Index Fund
FlexShares® Credit-Scored US Corporate Bond Index Fund
FlexShares® Credit-Scored US Long Corporate Bond Index Fund
FlexShares® Ready Access Variable Income Fund
FlexShares® Core Select Bond Fund
Table of Contents
2 | ||||
9 | ||||
16 | ||||
30 | ||||
42 | ||||
42 | ||||
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | 75 | |||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | 121 | |||
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 161 | |||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | 163 | |||
165 | ||||
169 | ||||
175 | ||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | 187 | |||
194 | ||||
200 | ||||
205 | ||||
206 | ||||
212 | ||||
218 | ||||
223 | ||||
FlexShares® International Quality Dividend Defensive Index Fund | 231 | |||
FlexShares® International Quality Dividend Dynamic Index Fund | 238 | |||
244 | ||||
245 | ||||
246 | ||||
249 | ||||
257 | ||||
262 | ||||
268 | ||||
270 | ||||
311 | ||||
315 | ||||
323 |
Table of Contents
Statements of Assets and Liabilities April 30, 2017 (Unaudited)
FlexShares® Morningstar US Market Factor Tilt Index Fund | FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Securities, at cost | $ | 734,254,148 | $ | 742,368,422 | $ | 380,184,469 | $ | — | ||||||||
Affiliate securities, at cost | 436,057 | — | — | 19,060,940 | ||||||||||||
Repurchase Agreements, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | 115,193,771 | 14,244,988 | 1,502,212 | — | ||||||||||||
|
| |||||||||||||||
Securities, at value | 1,025,704,198 | 798,600,814 | 431,801,550 | — | ||||||||||||
Affiliate securities, at value | 645,660 | — | — | 20,201,209 | ||||||||||||
Repurchase Agreements, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | 115,203,273 | 14,245,458 | 1,502,212 | — | ||||||||||||
Cash | 8,470,277 | 2,527,097 | 7,380,037 | 1,919 | ||||||||||||
Cash segregated at broker* | 1,394,613 | 766,933 | 383,474 | — | ||||||||||||
Foreign cash† | — | 2,947,118 | 5,319,727 | — | ||||||||||||
Restricted cash** | — | 11,462 | — | — | ||||||||||||
Due from Authorized Participant | — | — | 966,968 | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | 101,882 | 6,167 | 147,768 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 858,370 | 4,395,529 | 434,199 | — | ||||||||||||
Securities lending income | 65,130 | 68,576 | 7,472 | — | ||||||||||||
Capital shares issued | 5,034,376 | — | — | — | ||||||||||||
Investment adviser | 53,548 | 36,762 | 17,499 | 798 | ||||||||||||
Securities sold | — | 458,596 | 71 | — | ||||||||||||
Variation margin | 105,264 | 114,862 | 17,447 | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 1,157,534,709 | 824,275,089 | 447,836,823 | 20,351,694 | ||||||||||||
|
| |||||||||||||||
LIABILITIES | ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | 21,797 | 5,874 | 152,377 | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 115,207,632 | 14,247,723 | 1,502,212 | — | ||||||||||||
Deferred compensation (Note 7) | 44,953 | 30,484 | 14,248 | 175 | ||||||||||||
Investment advisory fees (Note 4) | 211,548 | 252,816 | 206,171 | 1,236 | ||||||||||||
Trustee fees (Note 7) | 8,595 | 6,278 | 3,251 | 623 | ||||||||||||
Securities purchased | 4,976,124 | — | 9,759,320 | — | ||||||||||||
Deferred non-US capital gains taxes | — | — | 432,718 | — | ||||||||||||
Due to Authorized Participant | — | 11,462 | — | — | ||||||||||||
Variation margin | — | — | — | — | ||||||||||||
Other | 9,000 | 120,000 | 150,000 | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 120,457,852 | 14,690,560 | 12,073,794 | 154,411 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,037,076,857 | $ | 809,584,529 | $ | 435,763,029 | $ | 20,197,283 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 756,024,274 | $ | 791,276,393 | $ | 413,345,032 | $ | 18,849,293 | ||||||||
Undistributed (accumulated) net investment income (loss) | 2,374,701 | 3,673,751 | (54,228 | ) | (1,516 | ) | ||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (13,136,405 | ) | (41,807,489 | ) | (28,904,235 | ) | 213,846 | |||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 291,659,653 | 56,232,392 | 51,184,363 | 1,140,269 | ||||||||||||
Securities lending | 9,502 | 470 | — | — | ||||||||||||
Futures contracts | 145,132 | 131,927 | 166,894 | — | ||||||||||||
Forward foreign currency contracts and foreign currency translations | — | 77,085 | 25,203 | (4,609 | ) | |||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,037,076,857 | $ | 809,584,529 | $ | 435,763,029 | $ | 20,197,283 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 10,300,001 | 13,200,001 | 8,400,001 | 750,001 | ||||||||||||
Net Asset Value | $ | 100.69 | $ | 61.33 | $ | 51.88 | $ | 26.93 | ||||||||
† Cost of foreign cash | $ | — | $ | 2,919,929 | $ | 5,309,224 | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
2 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | FlexShares® US Quality Large Cap Index Fund | FlexShares® STOXX® US ESG Impact Index Fund | FlexShares® STOXX® Global ESG Impact Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Securities, at cost | $ | — | $ | 23,145,539 | $ | 7,801,347 | $ | 7,410,677 | ||||||||
Affiliate securities, at cost | 34,003,999 | — | — | — | ||||||||||||
Repurchase Agreements, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Securities, at value | — | 23,471,290 | 8,379,485 | 8,354,511 | ||||||||||||
Affiliate securities, at value | 42,205,777 | — | — | — | ||||||||||||
Repurchase Agreements, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | — | — | — | — | ||||||||||||
Cash | 586 | 22,345 | 31,363 | 25,959 | ||||||||||||
Cash segregated at broker* | — | — | 983 | 6,519 | ||||||||||||
Foreign cash† | — | — | — | 31,070 | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 132,990 | — | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | — | 18,437 | 11,831 | 18,600 | ||||||||||||
Securities lending income | — | — | — | — | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 1,446 | 671 | 556 | 603 | ||||||||||||
Securities sold | — | — | — | — | ||||||||||||
Variation margin | — | — | — | 1,612 | ||||||||||||
|
| |||||||||||||||
Total Assets | 42,340,799 | 23,512,743 | 8,424,218 | 8,438,874 | ||||||||||||
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| |||||||||||||||
LIABILITIES | ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 92,994 | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | — | — | — | — | ||||||||||||
Deferred compensation (Note 7) | 656 | 186 | 71 | 95 | ||||||||||||
Investment advisory fees (Note 4) | 3,223 | 6,438 | 2,202 | 2,888 | ||||||||||||
Trustee fees (Note 7) | 790 | 485 | 485 | 508 | ||||||||||||
Securities purchased | — | — | — | — | ||||||||||||
Deferred non-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Variation margin | — | — | — | — | ||||||||||||
Other | — | 2,500 | 750 | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 97,663 | 9,609 | 3,508 | 3,491 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 42,243,136 | $ | 23,503,134 | $ | 8,420,710 | $ | 8,435,383 | ||||||||
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| |||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 36,236,200 | $ | 22,651,738 | $ | 7,803,734 | $ | 7,500,187 | ||||||||
Undistributed (accumulated) net investment income (loss) | (9,193 | ) | 39,544 | 16,864 | 28,595 | |||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (2,225,645 | ) | 486,101 | 21,974 | (39,528 | ) | ||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 8,201,778 | 325,751 | 578,138 | 943,834 | ||||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | — | — | — | 1,913 | ||||||||||||
Forward foreign currency contracts and foreign currency translations | 39,996 | — | — | 382 | ||||||||||||
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| |||||||||||||||
Net Assets | $ | 42,243,136 | $ | 23,503,134 | $ | 8,420,710 | $ | 8,435,383 | ||||||||
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| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 1,525,001 | 800,001 | 150,001 | 100,001 | ||||||||||||
Net Asset Value | $ | 27.70 | $ | 29.38 | $ | 56.14 | $ | 84.35 | ||||||||
† Cost of foreign cash | $ | — | $ | — | $ | — | $ | 30,817 |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 3 |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Index Fund | FlexShares® STOXX® Global Broad Infrastructure Index Fund | FlexShares® Global Quality Real Estate Index Fund | FlexShares® Real Assets Allocation Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Securities, at cost | $ | 4,301,484,657 | $ | 798,072,973 | $ | 186,636,890 | $ | — | ||||||||
Affiliate securities, at cost | — | — | — | 2,564,945 | ||||||||||||
Repurchase Agreements, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | 154,213,225 | 47,396,601 | 4,036,575 | — | ||||||||||||
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| |||||||||||||||
Securities, at value | 4,373,418,912 | 865,850,670 | 202,896,131 | — | ||||||||||||
Affiliate securities, at value | — | — | — | 2,673,702 | ||||||||||||
Repurchase Agreements, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | 154,226,357 | 47,398,921 | 4,037,074 | — | ||||||||||||
Cash | 9,898,744 | 3,577,015 | 984,742 | 1,783 | ||||||||||||
Cash segregated at broker* | 2,607,145 | 443,157 | 304,420 | — | ||||||||||||
Foreign cash† | 21,107,042 | 1,849,856 | 835,442 | — | ||||||||||||
Restricted cash** | 2,623,882 | — | — | — | ||||||||||||
Due from Authorized Participant | 51,403 | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 295,195 | 47,328 | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 5,421,174 | 1,991,070 | 627,811 | — | ||||||||||||
Securities lending income | 255,568 | 25,366 | 6,171 | — | ||||||||||||
Capital shares issued | 21,913,147 | — | — | — | ||||||||||||
Investment adviser | 197,693 | 27,689 | 8,122 | 561 | ||||||||||||
Securities sold | 130,060 | — | — | 254,231 | ||||||||||||
Variation margin | 18,904 | 80,661 | 34,428 | — | ||||||||||||
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Total Assets | 4,592,165,226 | 921,291,733 | 209,734,341 | 2,930,277 | ||||||||||||
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LIABILITIES | ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 210,398 | 34,627 | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 154,224,604 | 47,397,378 | 4,039,473 | — | ||||||||||||
Deferred compensation (Note 7) | 171,805 | 21,382 | 5,952 | 37 | ||||||||||||
Investment advisory fees (Note 4) | 1,639,125 | 326,033 | 76,485 | 315 | ||||||||||||
Trustee fees (Note 7) | 25,888 | 6,307 | 2,170 | 524 | ||||||||||||
Securities purchased | 46,584,482 | — | — | 254,601 | ||||||||||||
Deferred non-US capital gains taxes | 1,117,798 | — | — | — | ||||||||||||
Due to Authorized Participant | 2,623,882 | — | — | — | ||||||||||||
Variation margin | — | — | — | — | ||||||||||||
Other | 57,000 | 18,000 | 4,000 | — | ||||||||||||
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| |||||||||||||||
Total Liabilities | 206,654,982 | 47,803,727 | 4,128,080 | 255,477 | ||||||||||||
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Net Assets | $ | 4,385,510,244 | $ | 873,488,006 | $ | 205,606,261 | $ | 2,674,800 | ||||||||
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NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 4,867,654,724 | $ | 827,980,252 | $ | 192,103,574 | $ | 2,564,667 | ||||||||
Undistributed (accumulated) net investment income (loss) | 11,954,074 | 2,474,041 | 493,174 | (406 | ) | |||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (565,240,232 | ) | (24,832,701 | ) | (3,292,957 | ) | 1,782 | |||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 70,816,457 | 67,777,697 | 16,259,241 | 108,757 | ||||||||||||
Securities lending | 13,132 | 2,320 | 499 | — | ||||||||||||
Futures contracts | 128,636 | 83,798 | 36,225 | — | ||||||||||||
Forward foreign currency contracts and foreign currency translations | 183,453 | 2,599 | 6,505 | — | ||||||||||||
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Net Assets | $ | 4,385,510,244 | $ | 873,488,006 | $ | 205,606,261 | $ | 2,674,800 | ||||||||
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| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 150,100,001 | 19,000,001 | 3,500,001 | 100,001 | ||||||||||||
Net Asset Value | $ | 29.22 | $ | 45.97 | $ | 58.74 | $ | 26.75 | ||||||||
† Cost of foreign cash | $ | 20,864,235 | $ | 1,852,608 | $ | 829,061 | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
4 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Quality Dividend Index Fund | FlexShares® Index Fund | FlexShares® Quality Dividend Dynamic Index Fund | FlexShares® International Quality Dividend Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Securities, at cost | $ | 1,463,987,332 | $ | 262,832,717 | $ | 58,443,155 | $ | 647,778,981 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Repurchase Agreements, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | 137,274,051 | 26,394,240 | 2,189,439 | 6,864,231 | ||||||||||||
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| |||||||||||||||
Securities, at value | 1,683,662,428 | 301,219,013 | 66,658,698 | 696,121,380 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Repurchase Agreements, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | 137,284,651 | 26,396,267 | 2,189,439 | 6,864,231 | ||||||||||||
Cash | 9,700,377 | 3,867,241 | 1,037,428 | 2,607,886 | ||||||||||||
Cash segregated at broker* | 893,223 | 252,722 | 69,374 | 835,063 | ||||||||||||
Foreign cash† | — | — | — | 4,335,134 | ||||||||||||
Restricted cash** | — | — | — | 174,990 | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | 93,165 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 1,861,011 | 322,676 | 96,496 | 2,807,222 | ||||||||||||
Securities lending income | 117,535 | 8,165 | 238 | 104,653 | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 60,776 | 11,909 | 4,663 | 22,373 | ||||||||||||
Securities sold | — | — | — | — | ||||||||||||
Variation margin | 78,387 | 26,377 | 7,492 | 170,736 | ||||||||||||
|
| |||||||||||||||
Total Assets | 1,833,658,388 | 332,104,370 | 70,063,828 | 714,136,833 | ||||||||||||
|
| |||||||||||||||
LIABILITIES | ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | 85,378 | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 137,357,805 | 26,396,870 | 2,189,156 | 6,864,089 | ||||||||||||
Deferred compensation (Note 7) | 46,784 | 8,897 | 3,390 | 17,838 | ||||||||||||
Investment advisory fees (Note 4) | 514,732 | 92,640 | 20,728 | 263,945 | ||||||||||||
Trustee fees (Note 7) | 13,992 | 3,012 | 1,273 | 4,535 | ||||||||||||
Securities purchased | — | — | — | — | ||||||||||||
Deferred non-US capital gains taxes | — | — | — | 130,229 | ||||||||||||
Due to Authorized Participant | — | — | — | 174,990 | ||||||||||||
Variation margin | — | — | — | — | ||||||||||||
Other | 16,750 | 4,500 | 750 | 45,000 | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 137,950,063 | 26,505,919 | 2,215,297 | 7,586,004 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,695,708,325 | $ | 305,598,451 | $ | 67,848,531 | $ | 706,550,829 | ||||||||
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NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 1,424,766,409 | $ | 266,161,732 | $ | 60,968,515 | $ | 716,824,793 | ||||||||
Undistributed (accumulated) net investment income (loss) | 6,014,591 | 1,037,483 | 246,878 | 5,767,779 | ||||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | 45,135,934 | (23,054 | ) | (1,590,722 | ) | (64,521,515 | ) | |||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 219,675,096 | 38,386,296 | 8,215,543 | 48,212,170 | ||||||||||||
Securities lending | 10,600 | 2,027 | — | — | ||||||||||||
Futures contracts | 105,695 | 33,967 | 8,317 | 183,465 | ||||||||||||
Forward foreign currency contracts and foreign currency translations | — | — | — | 84,137 | ||||||||||||
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Net Assets | $ | 1,695,708,325 | $ | 305,598,451 | $ | 67,848,531 | $ | 706,550,829 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 41,400,001 | 7,600,001 | 1,700,001 | 28,600,001 | ||||||||||||
Net Asset Value | $ | 40.96 | $ | 40.21 | $ | 39.91 | $ | 24.70 | ||||||||
† Cost of foreign cash | $ | — | $ | — | $ | — | $ | 4,284,035 |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 5 |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® International Quality Dividend Defensive Index Fund | FlexShares® International Quality Dividend Dynamic Index Fund | FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Securities, at cost | $ | 77,370,105 | $ | 52,919,927 | $ | 2,007,703,843 | $ | 760,199,875 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Repurchase Agreements, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | 2,504,854 | 1,116,788 | — | — | ||||||||||||
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| |||||||||||||||
Securities, at value | 81,501,726 | 56,651,737 | 2,012,300,244 | 765,018,128 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Repurchase Agreements, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | 2,504,854 | 1,116,788 | — | — | ||||||||||||
Cash | 27,459 | 171,773 | 917,942 | 73,670 | ||||||||||||
Cash segregated at broker* | 99,032 | 36,696 | — | — | ||||||||||||
Foreign cash† | 1,070,663 | 381,003 | — | — | ||||||||||||
Restricted cash** | — | 9,371 | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 488 | — | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 365,500 | 241,794 | 3,890,580 | 973,529 | ||||||||||||
Securities lending income | 11,646 | 8,878 | — | — | ||||||||||||
Capital shares issued | 4,757,789 | — | — | — | ||||||||||||
Investment adviser | 4,606 | 2,416 | 148,419 | 45,470 | ||||||||||||
Securities sold | 4,798 | — | 207,620,514 | 115,943,675 | ||||||||||||
Variation margin | 44,564 | 27,541 | — | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 90,393,125 | 58,647,997 | 2,224,877,699 | 882,054,472 | ||||||||||||
|
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LIABILITIES | ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 83 | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 2,504,854 | 1,116,788 | — | — | ||||||||||||
Deferred compensation (Note 7) | 3,445 | 1,634 | 131,277 | 39,254 | ||||||||||||
Investment advisory fees (Note 4) | 30,309 | 21,552 | 332,122 | 125,014 | ||||||||||||
Trustee fees (Note 7) | 1,161 | 782 | 17,142 | 6,216 | ||||||||||||
Securities purchased | 4,571,332 | — | 206,644,264 | 115,966,734 | ||||||||||||
Deferred non-US capital gains taxes | 28,246 | 40,524 | — | — | ||||||||||||
Due to Authorized Participant | — | 9,371 | — | — | ||||||||||||
Variation margin | — | — | — | — | ||||||||||||
Other | — | 10,000 | — | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 7,139,430 | 1,200,651 | 207,124,805 | 116,137,218 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 83,253,695 | $ | 57,447,346 | $ | 2,017,752,894 | $ | 765,917,254 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 93,321,483 | $ | 61,224,821 | $ | 2,041,613,121 | $ | 766,478,305 | ||||||||
Undistributed (accumulated) net investment income (loss) | 708,875 | 439,648 | 5,434,422 | 2,305,753 | ||||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (14,943,603 | ) | (7,944,638 | ) | (33,891,050 | ) | (7,685,057 | ) | ||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 4,103,375 | 3,691,286 | 4,596,401 | 4,818,253 | ||||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | 48,343 | 29,161 | — | — | ||||||||||||
Forward foreign currency contracts and foreign currency translations | 15,222 | 7,068 | — | — | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 83,253,695 | $ | 57,447,346 | $ | 2,017,752,894 | $ | 765,917,254 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 3,500,001 | 2,200,001 | 81,354,000 | 30,300,001 | ||||||||||||
Net Asset Value | $ | 23.79 | $ | 26.11 | $ | 24.80 | $ | 25.28 | ||||||||
† Cost of foreign cash | $ | 1,057,776 | $ | 373,959 | $ | — | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
6 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Disciplined Duration MBS Index Fund | FlexShares® Credit-Scored US Corporate Bond Index Fund | FlexShares® Credit-Scored US Long Corporate Bond Index Fund | FlexShares® Ready Access Variable Income Fund | |||||||||||||
ASSETS | ||||||||||||||||
Securities, at cost | $ | 36,230,781 | $ | 39,769,253 | $ | 9,973,730 | $ | 161,549,048 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Repurchase Agreements, at cost | — | — | — | 10,000,000 | ||||||||||||
Securities Lending Reinvestments, at cost | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Securities, at value | 35,896,473 | 39,831,403 | 9,987,948 | 161,790,027 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Repurchase Agreements, at value | — | — | — | 10,000,000 | ||||||||||||
Securities Lending Reinvestments, at value | — | — | — | — | ||||||||||||
Cash | 1,067,806 | 68,395 | 191,209 | 2,907,088 | ||||||||||||
Cash segregated at broker* | — | — | — | — | ||||||||||||
Foreign cash† | — | — | — | — | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 114,772 | 332,306 | 125,692 | 459,264 | ||||||||||||
Securities lending income | — | — | — | — | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 1,828 | 1,662 | 899 | 6,789 | ||||||||||||
Securities sold | — | 5,241,163 | 704,824 | 612,713 | ||||||||||||
Variation margin | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 37,080,879 | 45,474,929 | 11,010,572 | 175,775,881 | ||||||||||||
|
| |||||||||||||||
LIABILITIES | ||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | — | — | — | — | ||||||||||||
Deferred compensation (Note 7) | 1,001 | 831 | 277 | 5,012 | ||||||||||||
Investment advisory fees (Note 4) | 5,901 | 7,338 | 1,898 | 34,565 | ||||||||||||
Trustee fees (Note 7) | 827 | 831 | 622 | 1,777 | ||||||||||||
Securities purchased | 908,707 | 4,952,298 | 699,675 | 2,000,000 | ||||||||||||
Deferred non-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Variation margin | — | — | — | — | ||||||||||||
Other | 1,200 | — | 500 | 1,400 | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 917,636 | 4,961,298 | 702,972 | 2,042,754 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 36,163,243 | $ | 40,513,631 | $ | 10,307,600 | $ | 173,733,127 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 37,531,770 | $ | 40,443,731 | $ | 10,397,841 | $ | 173,377,270 | ||||||||
Undistributed (accumulated) net investment income (loss) | (193,931 | ) | 83,823 | 35,501 | 151,296 | |||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (840,288 | ) | (76,073 | ) | (139,960 | ) | (36,418 | ) | ||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (334,308 | ) | 62,150 | 14,218 | 240,979 | |||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | — | — | — | — | ||||||||||||
Forward foreign currency contracts and foreign currency translations | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 36,163,243 | $ | 40,513,631 | $ | 10,307,600 | $ | 173,733,127 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 1,500,001 | 800,001 | 200,001 | 2,300,001 | ||||||||||||
Net Asset Value | $ | 24.11 | $ | 50.64 | $ | 51.54 | $ | 75.54 | ||||||||
† Cost of foreign cash | $ | — | $ | — | $ | — | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 7 |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Core Select Bond Fund | ||||
ASSETS | ||||
Securities, at cost | $ | 313,229 | ||
Affiliate securities, at cost | 2,716,155 | |||
Repurchase Agreements, at cost | — | |||
Securities Lending Reinvestments, at cost | — | |||
|
| |||
Securities, at value | 316,437 | |||
Affiliate securities, at value | 2,713,304 | |||
Repurchase Agreements, at value | — | |||
Securities Lending Reinvestments, at value | — | |||
Cash | 82,295 | |||
Cash segregated at broker* | 3,055 | |||
Foreign cash† | — | |||
Restricted cash** | — | |||
Due from Authorized Participant | — | |||
Unrealized appreciation on forward foreign currency contracts | — | |||
Receivables: | ||||
Dividends and interest | — | |||
Securities lending income | — | |||
Capital shares issued | — | |||
Investment adviser | 553 | |||
Securities sold | — | |||
Variation margin | — | |||
|
| |||
Total Assets | 3,115,644 | |||
|
| |||
LIABILITIES | ||||
Unrealized depreciation on forward foreign currency contracts | — | |||
Payables: | ||||
Cash collateral received from securities loaned | — | |||
Deferred compensation (Note 7) | 25 | |||
Investment advisory fees (Note 4) | 453 | |||
Trustee fees (Note 7) | 528 | |||
Securities purchased | — | |||
Deferred non-US capital gains taxes | — | |||
Due to Authorized Participant | — | |||
Variation margin | 3,164 | |||
Other | — | |||
|
| |||
Total Liabilities | 4,170 | |||
|
| |||
Net Assets | $ | 3,111,474 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 3,121,277 | ||
Undistributed (accumulated) net investment income (loss) | (8,501 | ) | ||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | 1,516 | |||
Net unrealized appreciation (depreciation) on: | ||||
Investments | 357 | |||
Securities lending | — | |||
Futures contracts | (3,175 | ) | ||
Forward foreign currency contracts and foreign currency translations | — | |||
|
| |||
Net Assets | $ | 3,111,474 | ||
|
| |||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 125,001 | |||
Net Asset Value | $ | 24.89 | ||
† Cost of foreign cash | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
8 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Operations
For the six months or period ended April 30, 2017 (Unaudited)
FlexShares® Morningstar US Market Factor Tilt Index Fund | FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividend income | $ | 9,690,734 | $ | 10,843,078 | $ | 3,384,046 | $ | — | ||||||||
Dividend income received from affiliate | 5,227 | — | — | 91,862 | ||||||||||||
Interest income | 228 | — | 767 | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 348,443 | 352,562 | 45,596 | — | ||||||||||||
Foreign withholding tax on dividends | (1,989 | ) | (1,279,208 | ) | (320,522 | ) | — | |||||||||
Foreign withholding tax on interest | — | — | (5 | ) | — | |||||||||||
|
| |||||||||||||||
Total Investment Income | 10,042,643 | 9,916,432 | 3,109,882 | 91,862 | ||||||||||||
|
| |||||||||||||||
EXPENSES | ||||||||||||||||
Deferred compensation (Note 7) | 2,639 | 1,850 | 935 | 54 | ||||||||||||
Investment advisory fees | 1,198,721 | 1,351,716 | 1,028,349 | 35,655 | ||||||||||||
Trustee fees (Note 7) | 26,120 | 19,047 | 10,087 | 1,451 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 1,227,480 | 1,372,613 | 1,039,371 | 37,160 | ||||||||||||
|
| |||||||||||||||
Less: | ||||||||||||||||
Deferred compensation reimbursed (Note 7) | (2,639 | ) | (1,850 | ) | (935 | ) | (54 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | (31,101 | ) | |||||||||||
Trustee fees reimbursed (Note 7) | (26,120 | ) | (19,047 | ) | (10,087 | ) | (1,451 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 1,198,721 | 1,351,716 | 1,028,349 | 4,554 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 8,843,922 | 8,564,716 | 2,081,533 | 87,308 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) ON: | ||||||||||||||||
Investments in affiliated securities | — | — | — | (509 | ) | |||||||||||
Investments in securities | 480,102 | 925,208 | 1,465,729 | (1) | — | |||||||||||
In-kind redemptions on investments in affiliated securities | 3,259 | — | — | 815,491 | ||||||||||||
In-kind redemptions on investments in securities | 4,650,707 | — | — | — | ||||||||||||
Futures contracts | 1,732,013 | 670,984 | (10,942 | ) | — | |||||||||||
Foreign currency transactions | — | (258,191 | ) | (64,085 | ) | (576,800 | ) | |||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | 6,866,081 | 1,338,001 | 1,390,702 | 238,182 | ||||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 111,412,923 | (2) | 67,184,802 | 31,510,018 | (3) | 1,162,480 | (4) | |||||||||
Securities lending | 7,950 | 470 | — | — | ||||||||||||
Futures contracts | 384,849 | (23,330 | ) | 177,863 | — | |||||||||||
Forward foreign currency contracts | — | 32,394 | 4,538 | (10,917 | ) | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | 196,682 | 23,382 | — | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 111,805,722 | 67,391,018 | 31,715,801 | 1,151,563 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 118,671,803 | 68,729,019 | 33,106,503 | 1,389,745 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 127,515,725 | $ | 77,293,735 | $ | 35,188,036 | $ | 1,477,053 | ||||||||
|
|
(1) | Net of non-US capital gains tax of $66,461. |
(2) | Includes $114,757 change in unrealized appreciation on investments in affiliates. |
(3) | Net of deferred non-US capital gains tax of $159,739. |
(4) | Includes $1,162,480 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 9 |
Table of Contents
Statements of Operations (cont.)
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | FlexShares® US Quality Large Cap Index Fund | FlexShares® STOXX® US ESG Impact Index Fund | FlexShares® STOXX® Global ESG Impact Index Fund | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividend income | $ | — | $ | 117,054 | $ | 69,329 | $ | 109,229 | ||||||||
Dividend income received from affiliate | 232,844 | — | — | — | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | — | — | — | — | ||||||||||||
Foreign withholding tax on dividends | — | — | — | (5,914 | ) | |||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 232,844 | 117,054 | 69,329 | 103,315 | ||||||||||||
|
| |||||||||||||||
EXPENSES | ||||||||||||||||
Deferred compensation (Note 7) | 97 | 23 | 15 | 21 | ||||||||||||
Investment advisory fees | 116,482 | 18,536 | 9,988 | 16,662 | ||||||||||||
Trustee fees (Note 7) | 1,945 | 1,239 | 1,119 | 1,165 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 118,524 | 19,798 | 11,122 | 17,848 | ||||||||||||
|
| |||||||||||||||
Less: | ||||||||||||||||
Deferred compensation reimbursed (Note 7) | (97 | ) | (23 | ) | (15 | ) | (21 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | (106,190 | ) | — | — | — | |||||||||||
Trustee fees reimbursed (Note 7) | (1,945 | ) | (1,239 | ) | (1,119 | ) | (1,165 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 10,292 | 18,536 | 9,988 | 16,662 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 222,552 | 98,518 | 59,341 | 86,653 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) ON: | ||||||||||||||||
Investments in affiliated securities | (4,720 | ) | — | — | — | |||||||||||
Investments in securities | — | 375 | 50,742 | 8,435 | ||||||||||||
In-kind redemptions on investments in affiliated securities | 348,676 | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | 511,317 | — | — | ||||||||||||
Futures contracts | (308 | ) | — | (17 | ) | 6,818 | ||||||||||
Foreign currency transactions | (876,229 | ) | — | — | (1,167 | ) | ||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (532,581 | ) | 511,692 | 50,725 | 14,086 | |||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 3,075,079 | (1) | 229,457 | 564,420 | 854,514 | |||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | — | — | — | 1,882 | ||||||||||||
Forward foreign currency contracts | 129,439 | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | — | 1,056 | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 3,204,518 | 229,457 | 564,420 | 857,452 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 2,671,937 | 741,149 | 615,145 | 871,538 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 2,894,489 | $ | 839,667 | $ | 674,486 | $ | 958,191 | ||||||||
|
|
(1) | Includes $3,075,079 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
10 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Operations (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | FlexShares® STOXX® Global Broad Infrastructure Index Fund | FlexShares® Global Quality Real Estate Index Fund | FlexShares® Real Assets Allocation Index Fund | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividend income | $ | 51,099,245 | $ | 10,195,211 | $ | 3,825,763 | $ | — | ||||||||
Dividend income received from affiliate | — | — | — | 22,660 | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 724,712 | 145,088 | 29,646 | — | ||||||||||||
Foreign withholding tax on dividends | (3,525,641 | ) | (484,778 | ) | (137,190 | ) | — | |||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 48,298,316 | 9,855,521 | 3,718,219 | 22,660 | ||||||||||||
|
| |||||||||||||||
EXPENSES | ||||||||||||||||
Deferred compensation (Note 7) | 10,624 | 1,951 | 513 | 4 | ||||||||||||
Investment advisory fees | 8,662,240 | 1,723,478 | 438,713 | 4,830 | ||||||||||||
Trustee fees (Note 7) | 94,795 | 19,553 | 6,058 | 1,071 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 8,767,659 | 1,744,982 | 445,284 | 5,905 | ||||||||||||
|
| |||||||||||||||
Less: | ||||||||||||||||
Deferred compensation reimbursed (Note 7) | (10,624 | ) | (1,951 | ) | (513 | ) | (4 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | (3,811 | ) | |||||||||||
Trustee fees reimbursed (Note 7) | (94,795 | ) | (19,553 | ) | (6,058 | ) | (1,071 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 8,662,240 | 1,723,478 | 438,713 | 1,019 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 39,636,076 | 8,132,043 | 3,279,506 | 21,641 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) ON: | ||||||||||||||||
Investments in affiliated securities | — | — | — | 1,833 | ||||||||||||
Investments in securities | (220,536,702 | ) | (9,290,145 | )(1) | (2,268,538 | ) | — | |||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | — | — | — | ||||||||||||
Futures contracts | 1,480,278 | 625,933 | 187,214 | — | ||||||||||||
Foreign currency transactions | (557,010 | ) | (37,166 | ) | (5,636 | ) | — | |||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (219,613,434 | ) | (8,701,378 | ) | (2,086,960 | ) | 1,833 | |||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 408,147,764 | (2) | 53,053,685 | 8,616,870 | 82,886 | (3) | ||||||||||
Securities lending | 11,013 | 1,823 | 499 | — | ||||||||||||
Futures contracts | (18,033 | ) | 55,129 | 39,332 | — | |||||||||||
Forward foreign currency contracts | 157,739 | 16,499 | (10,935 | ) | — | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies | 346,183 | 8,087 | 21,893 | — | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 408,644,666 | 53,135,223 | 8,667,659 | 82,886 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 189,031,232 | 44,433,845 | 6,580,699 | 84,719 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 228,667,308 | $ | 52,565,888 | $ | 9,860,205 | $ | 106,360 | ||||||||
|
|
(1) | Net of non-US capital gains tax of $1,343. |
(2) | Net of deferred non-US capital gains tax of $758,888. |
(3) | Includes $82,886 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 11 |
Table of Contents
Statements of Operations (cont.)
FlexShares® Quality Dividend Index Fund | FlexShares® Quality Dividend Defensive Index Fund | FlexShares® Quality Dividend Dynamic Index Fund | FlexShares® International Quality Dividend Index Fund | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividend income | $ | 29,636,427 | $ | 4,867,646 | $ | 1,142,656 | $ | 13,085,179 | ||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 317,935 | 44,354 | 3,349 | 245,609 | ||||||||||||
Foreign withholding tax on dividends | — | — | — | (1,023,541 | ) | |||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 29,954,362 | 4,912,000 | 1,146,005 | 12,307,247 | ||||||||||||
|
| |||||||||||||||
EXPENSES | ||||||||||||||||
Deferred compensation (Note 7) | 4,458 | 765 | 186 | 1,522 | ||||||||||||
Investment advisory fees | 2,994,252 | 520,927 | 120,699 | 1,336,449 | ||||||||||||
Trustee fees (Note 7) | 43,041 | 8,696 | 3,191 | 15,085 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 3,041,751 | 530,388 | 124,076 | 1,353,056 | ||||||||||||
|
| |||||||||||||||
Less: | ||||||||||||||||
Deferred compensation reimbursed (Note 7) | (4,458 | ) | (765 | ) | (186 | ) | (1,522 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (43,041 | ) | (8,696 | ) | (3,191 | ) | (15,085 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 2,994,252 | 520,927 | 120,699 | 1,336,449 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 26,960,110 | 4,391,073 | 1,025,306 | 10,970,798 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) ON: | ||||||||||||||||
Investments in affiliated securities | — | — | — | — | ||||||||||||
Investments in securities | 19,198,675 | 1,899,291 | 1,850,857 | 3,250,957 | ||||||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | 36,976,052 | 480,325 | 396,083 | — | ||||||||||||
Futures contracts | 1,507,726 | 283,180 | 94,401 | 466,498 | ||||||||||||
Foreign currency transactions | — | — | — | (203,084 | ) | |||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | 57,682,453 | 2,662,796 | 2,341,341 | 3,514,371 | ||||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 92,869,759 | 21,096,113 | 5,063,596 | 50,134,005 | (1) | |||||||||||
Securities lending | 9,421 | 1,944 | — | — | ||||||||||||
Futures contracts | 133,081 | 52,290 | 9,552 | 96,560 | ||||||||||||
Forward foreign currency contracts | — | — | — | 20,901 | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | — | 113,928 | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 93,012,261 | 21,150,347 | 5,073,148 | 50,365,394 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 150,694,714 | 23,813,143 | 7,414,489 | 53,879,765 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 177,654,824 | $ | 28,204,216 | $ | 8,439,795 | $ | 64,850,563 | ||||||||
|
|
(1) | Net of deferred non-US capital gains tax of $228,114. |
See Accompanying Notes to the Financial Statements.
12 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Operations (cont.)
FlexShares® International Quality Dividend Defensive Index Fund | FlexShares® International Quality Dividend Dynamic Index Fund | FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividend income | $ | 1,798,530 | $ | 890,739 | $ | — | $ | — | ||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | — | — | 19,408,842 | 8,562,195 | ||||||||||||
Securities lending income (net of fees) (Note 2) | 32,908 | 15,608 | — | — | ||||||||||||
Foreign withholding tax on dividends | (173,095 | ) | (69,385 | ) | — | — | ||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 1,658,343 | 836,962 | 19,408,842 | 8,562,195 | ||||||||||||
|
| |||||||||||||||
EXPENSES | ||||||||||||||||
Deferred compensation (Note 7) | 193 | 109 | 5,057 | 1,878 | ||||||||||||
Investment advisory fees | 174,654 | 91,154 | 1,903,263 | 698,629 | ||||||||||||
Trustee fees (Note 7) | 2,918 | 1,960 | 50,664 | 19,190 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 177,765 | 93,223 | 1,958,984 | 719,697 | ||||||||||||
|
| |||||||||||||||
Less: | ||||||||||||||||
Deferred compensation reimbursed (Note 7) | (193 | ) | (109 | ) | (5,057 | ) | (1,878 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (2,918 | ) | (1,960 | ) | (50,664 | ) | (19,190 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 174,654 | 91,154 | 1,903,263 | 698,629 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 1,483,689 | 745,808 | 17,505,579 | 7,863,566 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) ON: | ||||||||||||||||
Investments in affiliated securities | — | — | — | — | ||||||||||||
Investments in securities | (818,572 | )(1) | 173,850 | 305,361 | 363,866 | |||||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | 304,893 | — | 193,678 | 60,855 | ||||||||||||
Futures contracts | 38,265 | 22,415 | — | — | ||||||||||||
Foreign currency transactions | (42,728 | ) | (21,279 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (518,142 | ) | 174,986 | 499,039 | 424,721 | |||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 5,124,108 | (2) | 3,916,097 | (3) | (7,198,670 | ) | (6,630,871 | ) | ||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | 77,001 | 33,919 | — | — | ||||||||||||
Forward foreign currency contracts | (15,171 | ) | — | — | — | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies | 25,057 | 11,117 | — | — | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 5,210,995 | 3,961,133 | (7,198,670 | ) | (6,630,871 | ) | ||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 4,692,853 | 4,136,119 | (6,699,631 | ) | (6,206,150 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 6,176,542 | $ | 4,881,927 | $ | 10,805,948 | $ | 1,657,416 | ||||||||
|
|
(1) | Net of non-US capital gains tax of $14,415. |
(2) | Net of deferred non-US capital gains tax of $51,874. |
(3) | Net of deferred non-US capital gains tax of $21,862. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 13 |
Table of Contents
Statements of Operations (cont.)
FlexShares® Disciplined Duration MBS Index Fund | FlexShares® Credit-Scored US Corporate Bond Index Fund | FlexShares® Credit-Scored US Long Corporate Bond Index Fund | FlexShares® Ready Access Variable Income Fund | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividend income | $ | — | $ | — | $ | — | $ | — | ||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | 315,021 | 506,268 | 264,652 | 931,472 | ||||||||||||
Securities lending income (net of fees) (Note 2) | — | — | — | — | ||||||||||||
Foreign withholding tax on dividends | — | — | — | — | ||||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 315,021 | 506,268 | 264,652 | 931,472 | ||||||||||||
|
| |||||||||||||||
EXPENSES | ||||||||||||||||
Deferred compensation (Note 7) | 90 | 101 | 33 | 416 | ||||||||||||
Investment advisory fees | 35,613 | 41,683 | 13,495 | 182,875 | ||||||||||||
Trustee fees (Note 7) | 1,956 | 1,998 | 1,361 | 5,151 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 37,659 | 43,782 | 14,889 | 188,442 | ||||||||||||
|
| |||||||||||||||
Less: | ||||||||||||||||
Deferred compensation reimbursed (Note 7) | (90 | ) | (101 | ) | (33 | ) | (416 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (1,956 | ) | (1,998 | ) | (1,361 | ) | (5,151 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 35,613 | 41,683 | 13,495 | 182,875 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 279,408 | 464,585 | 251,157 | 748,597 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) ON: | ||||||||||||||||
Investments in affiliated securities | — | — | — | — | ||||||||||||
Investments in securities | (195,698 | ) | (75,975 | ) | (138,797 | ) | (21,604 | ) | ||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | — | — | — | ||||||||||||
Futures contracts | — | — | — | — | ||||||||||||
Foreign currency transactions | — | — | — | 5,615 | ||||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (195,698 | ) | (75,975 | ) | (138,797 | ) | (15,989 | ) | ||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | (556,364 | ) | (350,421 | ) | (310,737 | ) | 21,284 | |||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | — | — | — | — | ||||||||||||
Forward foreign currency contracts | — | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (556,364 | ) | (350,421 | ) | (310,737 | ) | 21,284 | |||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | (752,062 | ) | (426,396 | ) | (449,534 | ) | 5,295 | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (472,654 | ) | $ | 38,189 | $ | (198,377 | ) | $ | 753,892 | ||||||
|
|
See Accompanying Notes to the Financial Statements.
14 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Operations (cont.)
FlexShares® Core Select Bond Fund | ||||
November 18, 2016* through April 30, 2017 | ||||
INVESTMENT INCOME | ||||
Dividend income | $ | 2,693 | ||
Dividend income received from affiliate | 28,774 | |||
Interest income | 42 | |||
Securities lending income (net of fees) (Note 2) | — | |||
Foreign withholding tax on dividends | — | |||
Foreign withholding tax on interest | — | |||
|
| |||
Total Investment Income | 31,509 | |||
|
| |||
EXPENSES | ||||
Deferred compensation (Note 7) | 10 | |||
Investment advisory fees | 4,718 | |||
Trustee fees (Note 7) | 999 | |||
|
| |||
Total Gross Expenses Before Fees Reimbursed | 5,727 | |||
|
| |||
Less: | ||||
Deferred compensation reimbursed (Note 7) | (10 | ) | ||
Investment advisory fees reimbursed (Note 4) | (2,481 | ) | ||
Trustee fees reimbursed (Note 7) | (999 | ) | ||
|
| |||
Total Net Expenses | 2,237 | |||
|
| |||
Net Investment Income (Loss) | 29,272 | |||
|
| |||
NET REALIZED GAIN (LOSS) ON: | ||||
Investments in affiliated securities | (6,653 | ) | ||
Investments in securities | 9,442 | |||
In-kind redemptions on investments in affiliated securities | — | |||
In-kind redemptions on investments in securities | — | |||
Futures contracts | (1,273 | ) | ||
Foreign currency transactions | — | |||
|
| |||
Net Realized Gain (Loss) | 1,516 | |||
|
| |||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||
Investments in securities | 357 | (1) | ||
Securities lending | — | |||
Futures contracts | (3,175 | ) | ||
Forward foreign currency contracts | — | |||
Translation of other assets and liabilities denominated in foreign currencies | — | |||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) | (2,818 | ) | ||
|
| |||
Net Realized and Unrealized Gain (Loss) | (1,302 | ) | ||
|
| |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 27,970 | ||
|
|
* | Commencement of investment operations. |
(1) | Includes $(2,851) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 15 |
Table of Contents
Statements of Changes in Net Assets
FlexShares® Morningstar US Market Factor Tilt Index Fund | FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 8,843,922 | $ | 14,675,449 | $ | 8,564,716 | $ | 16,831,830 | ||||||||
Net realized gain (loss) | 6,866,081 | 2,099,141 | 1,338,001 | (25,219,251 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) | 111,805,722 | 17,449,410 | 67,391,018 | 12,138,170 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 127,515,725 | 34,224,000 | 77,293,735 | 3,750,749 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (8,267,847 | ) | (23,680,309 | ) | (6,711,825 | ) | (26,820,980 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (8,267,847 | ) | (23,680,309 | ) | (6,711,825 | ) | (26,820,980 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 97,320,136 | 71,388,673 | 116,104,129 | 75,780,815 | ||||||||||||
Cost of shares redeemed | (9,743,835 | ) | (13,137,147 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 87,576,301 | 58,251,526 | 116,104,129 | 75,780,815 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 206,824,179 | 68,795,217 | 186,686,039 | 52,710,584 | ||||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 830,252,678 | $ | 761,457,461 | $ | 622,898,490 | $ | 570,187,906 | ||||||||
|
| |||||||||||||||
End of Period | $ | 1,037,076,857 | $ | 830,252,678 | $ | 809,584,529 | $ | 622,898,490 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 2,374,701 | $ | 1,798,626 | $ | 3,673,751 | $ | 1,820,860 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 9,400,001 | 8,750,001 | 11,200,001 | 9,800,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 1,000,000 | 800,000 | 2,000,000 | 1,400,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (100,000 | ) | (150,000 | ) | — | — | ||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 10,300,001 | 9,400,001 | 13,200,001 | 11,200,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
16 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | November 9, 2015* through October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 2,081,533 | $ | 5,588,955 | $ | 87,308 | $ | 123,620 | ||||||||
Net realized gain (loss) | 1,390,702 | (11,637,175 | ) | 238,182 | (39,805 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 31,715,801 | 38,215,837 | 1,151,563 | (15,903 | ) | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 35,188,036 | 32,167,617 | 1,477,053 | 67,912 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (2,200,521 | ) | (8,605,953 | ) | (88,824 | ) | (108,151 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | (15,681 | ) | |||||||||||
|
| |||||||||||||||
Total distributions | (2,200,521 | ) | (8,605,953 | ) | (88,824 | ) | (123,832 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 103,424,585 | 77,716,540 | 25,850,396 | 1,150,789 | ||||||||||||
Cost of shares redeemed | — | — | (10,636,236 | ) | — | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 103,424,585 | 77,716,540 | 15,214,160 | 1,150,789 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 136,412,100 | 101,278,204 | 16,602,389 | 1,094,869 | ||||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 299,350,929 | $ | 198,072,725 | $ | 3,594,894 | $ | 2,500,025 | (2) | |||||||
|
| |||||||||||||||
End of Period | $ | 435,763,029 | $ | 299,350,929 | $ | 20,197,283 | $ | 3,594,894 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | (54,228 | ) | $ | 64,760 | $ | (1,516 | ) | $ | — | ||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 6,300,001 | 4,400,001 | 150,001 | 100,001 | (2) | |||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 2,100,000 | 1,900,000 | 1,000,000 | 50,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | — | (400,000 | ) | — | |||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 8,400,001 | 6,300,001 | 750,001 | 150,001 | ||||||||||||
|
|
* | Commencement of investment operations. |
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
(2) | Amount includes the initial subscription. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 17 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | FlexShares® US Quality Large Cap Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | November 9, 2015* through October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 222,552 | $ | 524,446 | $ | 98,518 | $ | 75,245 | ||||||||
Net realized gain (loss) | (532,581 | ) | (1,370,683 | ) | 511,692 | (23,697 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 3,204,518 | 5,037,256 | 229,457 | (64,809 | ) | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 2,894,489 | 4,191,019 | 839,667 | (13,261 | ) | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (231,745 | ) | (526,177 | ) | (70,754 | ) | (66,564 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (231,745 | ) | (526,177 | ) | (70,754 | ) | (66,564 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 7,345,981 | 28,704,696 | 20,398,860 | 3,955,342 | ||||||||||||
Cost of shares redeemed | (1,332,763 | ) | (1,302,389 | ) | (4,202,464 | ) | — | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 6,013,218 | 27,402,307 | 16,196,396 | 3,955,342 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 8,675,962 | 31,067,149 | 16,965,309 | 3,875,517 | ||||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 33,567,174 | $ | 2,500,025 | (2) | $ | 6,537,825 | $ | 2,662,308 | |||||||
|
| |||||||||||||||
End of Period | $ | 42,243,136 | $ | 33,567,174 | $ | 23,503,134 | $ | 6,537,825 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | (9,193 | ) | $ | — | $ | 39,544 | $ | 11,780 | |||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 1,300,001 | 100,001 | (2) | 250,001 | 100,001 | |||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 275,000 | 1,250,000 | 700,000 | 150,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (50,000 | ) | (50,000 | ) | (150,000 | ) | — | |||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 1,525,001 | 1,300,001 | 800,001 | 250,001 | ||||||||||||
|
|
* | Commencement of investment operations. |
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
(2) | Amount includes the initial subscription. |
See Accompanying Notes to the Financial Statements.
18 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® STOXX® US ESG Impact Index Fund | FlexShares® STOXX® Global ESG Impact Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | July 13, 2016* through October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | July 13, 2016* through October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 59,341 | $ | 27,398 | $ | 86,653 | $ | 40,729 | ||||||||
Net realized gain (loss) | 50,725 | (28,751 | ) | 14,086 | (54,431 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 564,420 | 13,718 | 857,452 | 88,677 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 674,486 | 12,365 | 958,191 | 74,975 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (53,614 | ) | (16,261 | ) | (74,712 | ) | (23,258 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (53,614 | ) | (16,261 | ) | (74,712 | ) | (23,258 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 2,803,684 | — | — | — | ||||||||||||
Cost of shares redeemed | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 2,803,684 | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 3,424,556 | (3,896 | ) | 883,479 | 51,717 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 4,996,154 | $ | 5,000,050 | (2) | $ | 7,551,904 | $ | 7,500,187 | (2) | ||||||
|
| |||||||||||||||
End of Period | $ | 8,420,710 | $ | 4,996,154 | $ | 8,435,383 | $ | 7,551,904 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 16,864 | $ | 11,137 | $ | 28,595 | $ | 16,654 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 100,001 | 100,001 | (2) | 100,001 | 100,001 | (2) | ||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 50,000 | — | — | — | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 150,001 | 100,001 | 100,001 | 100,001 | ||||||||||||
|
|
* | Commencement of investment operations. |
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
(2) | Amount includes the initial subscription. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 19 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | FlexShares® STOXX® Global Broad Infrastructure Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 39,636,076 | $ | 45,169,139 | $ | 8,132,043 | $ | 18,287,364 | ||||||||
Net realized gain (loss) | (219,613,434 | ) | (208,836,420 | ) | (8,701,378 | ) | (10,070,968 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 408,644,666 | 433,140,156 | 53,135,223 | 14,845,917 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 228,667,308 | 269,472,875 | 52,565,888 | 23,062,313 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (28,696,784 | ) | (106,484,737 | ) | (9,367,227 | ) | (15,592,983 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (28,696,784 | ) | (106,484,737 | ) | (9,367,227 | ) | (15,592,983 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 1,363,527,299 | 1,137,205,075 | 160,613,696 | 194,525,272 | ||||||||||||
Cost of shares redeemed | — | (482,415,109 | ) | — | — | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 1,363,527,299 | 654,789,966 | 160,613,696 | 194,525,272 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 1,563,497,823 | 817,778,104 | 203,812,357 | 201,994,602 | ||||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 2,822,012,421 | $ | 2,004,234,317 | $ | 669,675,649 | $ | 467,681,047 | ||||||||
|
| |||||||||||||||
End of Period | $ | 4,385,510,244 | $ | 2,822,012,421 | $ | 873,488,006 | $ | 669,675,649 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 11,954,074 | $ | 1,014,782 | $ | 2,474,041 | $ | 3,709,225 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 103,000,001 | 78,550,001 | 15,400,001 | 10,800,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 47,100,000 | 44,400,000 | 3,600,000 | 4,600,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | (19,950,000 | ) | — | — | |||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 150,100,001 | 103,000,001 | 19,000,001 | 15,400,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
20 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Global Quality Real Estate Index Fund | FlexShares® Real Assets Allocation Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | November 23, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 3,279,506 | $ | 5,940,691 | $ | 21,641 | $ | 50,484 | ||||||||
Net realized gain (loss) | (2,086,960 | ) | (246,154 | ) | 1,833 | (129,703 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 8,667,659 | 79,891 | 82,886 | 25,871 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 9,860,205 | 5,774,428 | 106,360 | (53,348 | ) | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (4,150,989 | ) | (5,281,042 | ) | (22,047 | ) | (50,647 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (4,150,989 | ) | (5,281,042 | ) | (22,047 | ) | (50,647 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 2,848,273 | 64,371,563 | 1,308,869 | — | ||||||||||||
Cost of shares redeemed | — | — | — | (1,114,412 | ) | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 2,848,273 | 64,371,563 | 1,308,869 | (1,114,412 | ) | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 8,557,489 | 64,864,949 | 1,393,182 | (1,218,407 | ) | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 197,048,772 | $ | 132,183,823 | $ | 1,281,618 | $ | 2,500,025 | (2) | |||||||
|
| |||||||||||||||
End of Period | $ | 205,606,261 | $ | 197,048,772 | $ | 2,674,800 | $ | 1,281,618 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 493,174 | $ | 1,364,657 | $ | (406 | ) | $ | — | |||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 3,450,001 | 2,300,001 | 50,001 | 100,001 | (2) | |||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 50,000 | 1,150,000 | 50,000 | — | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | — | — | (50,000 | ) | |||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 3,500,001 | 3,450,001 | 100,001 | 50,001 | ||||||||||||
|
|
* | Commencement of investment operations. |
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
(2) | Amount includes the initial subscription. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 21 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Quality Dividend Index Fund | FlexShares® Quality Dividend Defensive Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 26,960,110 | $ | 38,657,601 | $ | 4,391,073 | $ | 6,553,115 | ||||||||
Net realized gain (loss) | 57,682,453 | (2,805,032 | ) | 2,662,796 | 2,140,437 | |||||||||||
Net change in unrealized appreciation (depreciation) | 93,012,261 | 75,490,272 | 21,150,347 | 3,599,717 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 177,654,824 | 111,342,841 | 28,204,216 | 12,293,269 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (25,404,546 | ) | (36,033,305 | ) | (4,009,007 | ) | (6,358,981 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (25,404,546 | ) | (36,033,305 | ) | (4,009,007 | ) | (6,358,981 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 268,592,022 | 689,638,031 | 31,203,457 | 75,521,223 | ||||||||||||
Cost of shares redeemed | (163,283,173 | ) | (30,413,433 | ) | (2,023,169 | ) | (20,838,065 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 105,308,849 | 659,224,598 | 29,180,288 | 54,683,158 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 257,559,127 | 734,534,134 | 53,375,497 | 60,617,446 | ||||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 1,438,149,198 | $ | 703,615,064 | $ | 252,222,954 | $ | 191,605,508 | ||||||||
|
| |||||||||||||||
End of Period | $ | 1,695,708,325 | $ | 1,438,149,198 | $ | 305,598,451 | $ | 252,222,954 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 6,014,591 | $ | 4,459,027 | $ | 1,037,483 | $ | 655,417 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 38,750,001 | 19,550,001 | 6,850,001 | 5,350,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 6,700,000 | 20,100,000 | 800,000 | 2,100,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (4,050,000 | ) | (900,000 | ) | (50,000 | ) | (600,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 41,400,001 | 38,750,001 | 7,600,001 | 6,850,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
22 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Quality Dividend Dynamic Index Fund | FlexShares® International Quality Dividend Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 1,025,306 | $ | 1,795,912 | $ | 10,970,798 | $ | 16,844,948 | ||||||||
Net realized gain (loss) | 2,341,341 | (222,435 | ) | 3,514,371 | (39,391,040 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 5,073,148 | (477,041 | ) | 50,365,394 | 25,023,193 | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 8,439,795 | 1,096,436 | 64,850,563 | 2,477,101 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (916,385 | ) | (2,065,822 | ) | (6,614,964 | ) | (15,734,887 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (916,385 | ) | (2,065,822 | ) | (6,614,964 | ) | (15,734,887 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 9,329,699 | 3,533,491 | 152,265,238 | 151,444,186 | ||||||||||||
Cost of shares redeemed | (1,983,467 | ) | (23,389,058 | ) | — | (72,726,279 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 7,346,232 | (19,855,567 | ) | 152,265,238 | 78,717,907 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 14,869,642 | (20,824,953 | ) | 210,500,837 | 65,460,121 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 52,978,889 | $ | 73,803,842 | $ | 496,049,992 | $ | 430,589,871 | ||||||||
|
| |||||||||||||||
End of Period | $ | 67,848,531 | $ | 52,978,889 | $ | 706,550,829 | $ | 496,049,992 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 246,878 | $ | 137,957 | $ | 5,767,779 | $ | 1,411,945 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 1,500,001 | 2,100,001 | 22,100,001 | 18,700,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 250,000 | 100,000 | 6,500,000 | 6,800,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (50,000 | ) | (700,000 | ) | — | (3,400,000 | ) | |||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 1,700,001 | 1,500,001 | 28,600,001 | 22,100,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 23 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® International Quality Dividend Defensive Index Fund | FlexShares® International Quality Dividend Dynamic Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 1,483,689 | $ | 2,462,908 | $ | 745,808 | $ | 940,321 | ||||||||
Net realized gain (loss) | (518,142 | ) | (8,231,025 | ) | 174,986 | (4,835,920 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 5,210,995 | 5,079,946 | 3,961,133 | 2,867,619 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 6,176,542 | (688,171 | ) | 4,881,927 | (1,027,980 | ) | ||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (850,669 | ) | (2,582,926 | ) | (306,160 | ) | (959,493 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | — | — | (81,967 | ) | |||||||||||
|
| |||||||||||||||
Total distributions | (850,669 | ) | (2,582,926 | ) | (306,160 | ) | (1,041,460 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 6,929,235 | 22,603,616 | 34,094,685 | 15,259,505 | ||||||||||||
Cost of shares redeemed | (6,562,120 | ) | (29,664,790 | ) | — | (30,139,006 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 367,115 | (7,061,174 | ) | 34,094,685 | (14,879,501 | ) | ||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 5,692,988 | (10,332,271 | ) | 38,670,452 | (16,948,941 | ) | ||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 77,560,707 | $ | 87,892,978 | $ | 18,776,894 | $ | 35,725,835 | ||||||||
|
| |||||||||||||||
End of Period | $ | 83,253,695 | $ | 77,560,707 | $ | 57,447,346 | $ | 18,776,894 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 708,875 | $ | 75,855 | $ | 439,648 | $ | — | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 3,500,001 | 3,900,001 | 800,001 | 1,500,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 300,000 | 1,000,000 | 1,400,000 | 700,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (300,000 | ) | (1,400,000 | ) | — | (1,400,000 | ) | |||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 3,500,001 | 3,500,001 | 2,200,001 | 800,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
24 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 17,505,579 | $ | 11,547,752 | $ | 7,863,566 | $ | 6,381,170 | ||||||||
Net realized gain (loss) | 499,039 | 5,046,030 | 424,721 | 2,388,690 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (7,198,670 | ) | 29,202,337 | (6,630,871 | ) | 16,001,717 | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 10,805,948 | 45,796,119 | 1,657,416 | 24,771,577 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (12,071,157 | ) | (11,547,752 | ) | (5,557,813 | ) | (6,381,170 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
Tax return of capital | — | (1,766,610 | ) | — | (419,775 | ) | ||||||||||
|
| |||||||||||||||
Total distributions | (12,071,157 | ) | (13,314,362 | ) | (5,557,813 | ) | (6,800,945 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 188,283,184 | 92,730,639 | 121,964,742 | 256,619,497 | ||||||||||||
Cost of shares redeemed | (11,167,123 | ) | (261,621,410 | ) | (3,752,457 | ) | (55,195,042 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 177,116,061 | (168,890,771 | ) | 118,212,285 | 201,424,455 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 175,850,852 | (136,409,014 | ) | 114,311,888 | 219,395,087 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 1,841,902,042 | $ | 1,978,311,056 | $ | 651,605,366 | $ | 432,210,279 | ||||||||
|
| |||||||||||||||
End of Period | $ | 2,017,752,894 | $ | 1,841,902,042 | $ | 765,917,254 | $ | 651,605,366 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 5,434,422 | $ | — | $ | 2,305,753 | $ | — | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 74,204,000 | 81,154,000 | 25,600,001 | 17,600,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 7,600,000 | 3,750,000 | 4,850,000 | 10,250,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (450,000 | ) | (10,700,000 | ) | (150,000 | ) | (2,250,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 81,354,000 | 74,204,000 | 30,300,001 | 25,600,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 25 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Disciplined Duration MBS Index Fund | FlexShares® Credit-Scored US Corporate Bond Index Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 279,408 | $ | 599,584 | $ | 464,585 | $ | 619,619 | ||||||||
Net realized gain (loss) | (195,698 | ) | 32,724 | (75,975 | ) | 143,864 | ||||||||||
Net change in unrealized appreciation (depreciation) | (556,364 | ) | 258,325 | (350,421 | ) | 391,732 | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | (472,654 | ) | 890,633 | 38,189 | 1,155,215 | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (568,746 | ) | (1,091,693 | ) | (451,812 | ) | (575,443 | ) | ||||||||
Net realized gain | — | — | (138,136 | ) | — | |||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (568,746 | ) | (1,091,693 | ) | (589,948 | ) | (575,443 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 3,610,548 | 18,637,435 | 5,024,786 | 22,880,229 | ||||||||||||
Cost of shares redeemed | (8,469,309 | ) | — | — | — | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | (4,858,761 | ) | 18,637,435 | 5,024,786 | 22,880,229 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | (5,900,161 | ) | 18,436,375 | 4,473,027 | 23,460,001 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 42,063,404 | $ | 23,627,029 | $ | 36,040,604 | $ | 12,580,603 | ||||||||
|
| |||||||||||||||
End of Period | $ | 36,163,243 | $ | 42,063,404 | $ | 40,513,631 | $ | 36,040,604 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | (193,931 | ) | $ | 95,407 | $ | 83,823 | $ | 71,050 | |||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 1,700,001 | 950,001 | 700,001 | 250,001 | ||||||||||||
Shares issued | 150,000 | 750,000 | 100,000 | 450,000 | ||||||||||||
Shares issued in-kind | — | — | — | — | ||||||||||||
Shares redeemed | (350,000 | ) | — | — | — | |||||||||||
Shares redeemed in-kind | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 1,500,001 | 1,700,001 | 800,001 | 700,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
26 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | FlexShares® Ready Access Variable Income Fund | |||||||||||||||
Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | Six Months Ended April 30, 2017 (Unaudited) | Year Ended October 31, 2016 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 251,157 | $ | 380,890 | $ | 748,597 | $ | 852,326 | ||||||||
Net realized gain (loss) | (138,797 | ) | 169,457 | (15,989 | ) | (11,269 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (310,737 | ) | 319,585 | 21,284 | 316,293 | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | (198,377 | ) | 869,932 | 753,892 | 1,157,350 | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Net investment income | (259,648 | ) | (360,107 | ) | (684,789 | ) | (816,654 | ) | ||||||||
Net realized gain | (170,620 | ) | — | — | (64,745 | ) | ||||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (430,268 | ) | (360,107 | ) | (684,789 | ) | (881,399 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | — | 7,918,639 | 64,100,520 | 22,630,718 | ||||||||||||
Cost of shares redeemed | (2,520,813 | ) | — | — | (11,305,012 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | (2,520,813 | ) | 7,918,639 | 64,100,520 | 11,325,706 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | (3,149,458 | ) | 8,428,464 | 64,169,623 | 11,601,657 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 13,457,058 | $ | 5,028,594 | $ | 109,563,504 | $ | 97,961,847 | ||||||||
|
| |||||||||||||||
End of Period | $ | 10,307,600 | $ | 13,457,058 | $ | 173,733,127 | $ | 109,563,504 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 35,501 | $ | 43,992 | $ | 151,296 | $ | 87,488 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 250,001 | 100,001 | 1,450,001 | 1,300,001 | ||||||||||||
Shares issued | — | 150,000 | 850,000 | 300,000 | ||||||||||||
Shares issued in-kind | — | — | — | — | ||||||||||||
Shares redeemed | (50,000 | ) | — | — | (50,000 | ) | ||||||||||
Shares redeemed in-kind | — | — | — | (100,000 | ) | |||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 200,001 | 250,001 | 2,300,001 | 1,450,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 27 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Core Select Bond Fund | ||||
November 18, 2016* through April 30, 2017 | ||||
OPERATIONS | ||||
Net investment income (loss) | $ | 29,272 | ||
Net realized gain (loss) | 1,516 | |||
Net change in unrealized appreciation (depreciation) | (2,818 | ) | ||
|
| |||
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 27,970 | |||
|
| |||
DISTRIBUTIONS TO SHAREHOLDERS | ||||
Net investment income | (37,773 | ) | ||
Net realized gain | — | |||
Tax return of capital | — | |||
|
| |||
Total distributions | (37,773 | ) | ||
|
| |||
CAPITAL TRANSACTIONS(1) | ||||
Proceeds from shares issued | 621,252 | |||
Cost of shares redeemed | — | |||
|
| |||
Net Increase (Decrease) from Capital Transactions | 621,252 | |||
|
| |||
Total Increase (Decrease) in Net Assets | 611,449 | |||
|
| |||
NET ASSETS | ||||
Beginning of Period | $ | 2,500,025 | (2) | |
|
| |||
End of Period | $ | 3,111,474 | ||
|
| |||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | (8,501 | ) | |
|
| |||
SHARE TRANSACTIONS | ||||
Beginning of period | 100,001 | (2) | ||
Shares issued | — | |||
Shares issued in-kind | 25,000 | |||
Shares redeemed | — | |||
Shares redeemed in-kind | — | |||
|
| |||
Shares Outstanding, End of Period | 125,001 | |||
|
|
* | Commencement of investment operations. |
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
(2) | Amount includes the initial subscription. |
See Accompanying Notes to the Financial Statements.
28 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
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FLEXSHARES SEMIANNUAL REPORT | 29 |
Table of Contents
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Morningstar US Market Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | $ | 88.32 | $ | 0.89 | (a) | $ | 12.32 | $ | 13.21 | $ | (0.84 | ) | $ | — | $ | — | $ | (0.84 | ) | |||||||||||||
Year ended October 31, 2016 | 87.02 | 1.65 | (a) | 2.33 | 3.98 | (2.68 | ) | — | — | (2.68 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 86.19 | 1.58 | (a) | 0.42 | 2.00 | (1.17 | ) | — | — | (1.17 | ) | |||||||||||||||||||||
Year ended October 31, 2014 | 76.56 | 1.16 | (a) | 9.26 | 10.42 | (0.79 | ) | — | — | (0.79 | ) | |||||||||||||||||||||
Year ended October 31, 2013 | 58.70 | 1.09 | (a) | 17.43 | 18.52 | (0.66 | ) | — | — | (0.66 | ) | |||||||||||||||||||||
Year ended October 31, 2012 | 51.74 | 0.91 | (a) | 6.17 | 7.08 | (0.12 | ) | — | — | (0.12 | ) | |||||||||||||||||||||
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 55.62 | 0.71 | (a) | 5.58 | 6.29 | (0.58 | ) | — | — | (0.58 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 58.18 | 1.59 | (a) | (1.55 | ) | 0.04 | (2.60 | ) | — | — | (2.60 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 60.74 | 1.51 | (a) | (2.27 | ) | (0.76 | ) | (1.80 | ) | — | — | (1.80 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 61.95 | 1.80 | (a) | (2.29 | ) | (0.49 | ) | (0.72 | ) | — | — | (0.72 | ) | |||||||||||||||||||
Year ended October 31, 2013 | 49.31 | 1.35 | (a) | 11.40 | 12.75 | (0.11 | ) | — | — | (0.11 | ) | |||||||||||||||||||||
For the period 09/25/12* through 10/31/12 | 50.00 | 0.12 | (a) | (0.81 | ) | (0.69 | ) | — | — | — | — | |||||||||||||||||||||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 47.52 | 0.29 | (a) | 4.39 | 4.68 | (0.32 | ) | — | — | (0.32 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 45.02 | 0.97 | (a) | 3.10 | 4.07 | (1.57 | ) | — | — | (1.57 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 52.75 | 0.92 | (a) | (7.65 | ) | (6.73 | ) | �� | (1.00 | ) | — | — | (1.00 | ) | ||||||||||||||||||
Year ended October 31, 2014 | 52.92 | 1.03 | (a) | (0.77 | ) | 0.26 | (0.43 | ) | — | — | (0.43 | ) | ||||||||||||||||||||
Year ended October 31, 2013 | 49.60 | 1.03 | (a) | 2.34 | 3.37 | (0.05 | ) | — | — | (0.05 | ) | |||||||||||||||||||||
For the period 09/25/12* through 10/31/12 | 50.00 | 0.03 | (a) | (0.43 | ) | (0.40 | ) | — | — | — | — | |||||||||||||||||||||
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 23.97 | 0.14 | (a) | 3.08 | 3.22 | (0.26 | ) | — | — | (0.26 | ) | |||||||||||||||||||||
For the period 11/09/15* through 10/31/16 | 25.00 | 1.04 | (a) | (0.96 | ) | 0.08 | (0.98 | ) | — | (0.13 | ) | (1.11 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
See Accompanying Notes to the Financial Statements.
30 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 100.69 | 14.98 | % | 14.88 | % | 0.26 | % | 0.25 | % | 1.84 | % | 1.84 | % | 9 | % | $ | 1,037,077 | |||||||||||||||||
88.32 | 4.70 | 4.77 | 0.28 | 0.27 | 1.92 | 1.93 | 26 | 830,253 | ||||||||||||||||||||||||||
87.02 | 2.30 | 2.30 | 0.28 | 0.27 | 1.81 | 1.81 | 51 | 761,457 | ||||||||||||||||||||||||||
86.19 | 13.69 | 13.54 | 0.28 | 0.27 | 1.41 | 1.41 | 25 | 741,260 | ||||||||||||||||||||||||||
76.56 | 31.88 | 28.39 | 0.27 | 0.27 | 1.59 | 1.59 | 20 | 447,893 | ||||||||||||||||||||||||||
58.70 | 13.71 | 16.86 | 0.29 | 0.27 | 1.57 | 1.59 | 15 | 149,677 | ||||||||||||||||||||||||||
61.33 | 11.40 | 11.91 | 0.40 | 0.39 | 2.47 | 2.47 | 8 | 809,585 | ||||||||||||||||||||||||||
55.62 | 0.20 | 0.80 | 0.43 | 0.42 | 2.91 | 2.92 | 35 | 622,898 | ||||||||||||||||||||||||||
58.18 | (1.26 | ) | (2.34 | ) | 0.43 | 0.42 | 2.52 | 2.53 | 26 | 570,188 | ||||||||||||||||||||||||
60.74 | (0.81 | ) | (0.80 | ) | 0.43 | 0.42 | 2.84 | 2.85 | 16 | 643,893 | ||||||||||||||||||||||||
61.95 | 25.93 | 0.62 | 0.43 | 0.42 | 2.37 | 2.38 | 7 | 309,745 | ||||||||||||||||||||||||||
49.31 | (1.40 | ) | 23.98 | 0.43 | 0.42 | 2.47 | 2.49 | 1 | 9,862 | |||||||||||||||||||||||||
51.88 | 9.95 | 9.84 | 0.60 | 0.59 | 1.19 | 1.19 | 14 | 435,763 | ||||||||||||||||||||||||||
47.52 | 9.41 | 10.65 | 0.66 | 0.65 | 2.23 | 2.23 | 34 | 299,351 | ||||||||||||||||||||||||||
45.02 | (12.91 | ) | (13.43 | ) | 0.66 | 0.65 | 1.86 | 1.87 | 30 | 198,073 | ||||||||||||||||||||||||
52.75 | 0.52 | 0.52 | 0.66 | 0.65 | 1.96 | 1.97 | 19 | 258,481 | ||||||||||||||||||||||||||
52.92 | 6.80 | (14.20 | ) | 0.65 | 0.65 | 2.01 | 2.01 | 20 | 158,759 | |||||||||||||||||||||||||
49.60 | (0.80 | ) | 23.52 | 0.67 | 0.65 | 0.50 | 0.52 | 1 | 9,920 | |||||||||||||||||||||||||
26.93 | 13.47 | 12.96 | 0.46 | (i) | 0.06 | (i) | 0.68 | 1.08 | 3 | 20,197 | ||||||||||||||||||||||||
23.97 | 0.59 | 0.97 | 0.55 | (i) | 0.05 | (i) | 4.12 | 4.62 | 11 | 3,595 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 31 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | $ | 25.82 | $ | 0.16 | (a) | $ | 1.89 | $ | 2.05 | $ | (0.17 | ) | $ | — | $ | — | $ | (0.17 | ) | |||||||||||||
For the period 11/09/15* through 10/31/16 | 25.00 | 0.59 | (a) | 1.10 | 1.69 | (0.87 | ) | — | — | (0.87 | ) | |||||||||||||||||||||
FlexShares® US Quality Large Cap Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 26.15 | 0.24 | (a) | 3.20 | 3.44 | (0.21 | ) | — | — | (0.21 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 26.62 | 0.50 | (a) | (0.47 | ) | 0.03 | (0.50 | ) | — | — | (0.50 | ) | ||||||||||||||||||||
For the period 09/23/15* through 10/31/15 | 25.00 | 0.03 | (a) | 1.59 | 1.62 | — | — | — | — | |||||||||||||||||||||||
FlexShares® STOXX® US ESG Impact Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 49.96 | 0.51 | (a) | 6.13 | 6.64 | (0.46 | ) | — | — | (0.46 | ) | |||||||||||||||||||||
For the period 07/13/16* through 10/31/16 | 50.00 | 0.27 | (a) | (0.15 | ) | 0.12 | (0.16 | ) | — | — | (0.16 | ) | ||||||||||||||||||||
FlexShares® STOXX® Global ESG Impact Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 75.52 | 0.87 | (a) | 8.71 | 9.58 | (0.75 | ) | — | — | (0.75 | ) | |||||||||||||||||||||
For the period 07/13/16* through 10/31/16 | 75.00 | 0.41 | (a) | 0.34 | 0.75 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 27.40 | 0.31 | (a) | 1.73 | 2.04 | (0.22 | ) | — | — | (0.22 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 25.52 | 0.55 | (a) | 2.73 | 3.28 | (1.40 | ) | — | — | (1.40 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 33.18 | 0.94 | (a) | (7.74 | ) | (6.80 | ) | (0.86 | ) | — | — | (0.86 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 34.71 | 0.80 | (a) | (1.63 | ) | (0.83 | ) | (0.70 | ) | — | — | (0.70 | ) | |||||||||||||||||||
Year ended October 31, 2013 | 35.19 | 0.87 | (a) | (0.98 | ) | (0.11 | ) | (0.37 | ) | — | — | (0.37 | ) | |||||||||||||||||||
Year ended October 31, 2012 | 35.01 | 0.44 | (0.17 | )(g) | 0.27 | (0.09 | ) | — | — | (0.09 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
See Accompanying Notes to the Financial Statements.
32 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 27.70 | 8.03 | % | 7.37 | % | 0.65 | (i)% | 0.06 | (i)% | 0.63 | % | 1.22 | % | 2 | % | $ | 42,243 | |||||||||||||||||
25.82 | 7.04 | 7.12 | 0.72 | (i) | 0.05 | (i) | 1.81 | 2.47 | 4 | 33,567 | ||||||||||||||||||||||||
29.38 | 13.17 | 13.17 | 0.34 | 0.32 | 1.68 | 1.70 | 25 | 23,503 | ||||||||||||||||||||||||||
26.15 | 0.12 | 0.12 | 0.38 | 0.32 | 1.87 | 1.93 | 59 | 6,538 | ||||||||||||||||||||||||||
26.62 | 6.48 | 6.48 | 0.42 | 0.32 | 1.10 | 1.20 | 3 | 2,662 | ||||||||||||||||||||||||||
56.14 | 13.34 | 13.27 | 0.36 | 0.32 | 1.86 | 1.90 | 25 | 8,421 | ||||||||||||||||||||||||||
49.96 | 0.24 | 0.28 | 0.37 | 0.32 | 1.75 | 1.80 | 20 | 4,996 | ||||||||||||||||||||||||||
84.35 | 12.74 | 12.76 | 0.45 | 0.42 | 2.15 | 2.18 | 24 | 8,435 | ||||||||||||||||||||||||||
75.52 | 1.00 | 1.03 | 0.45 | 0.42 | 1.74 | 1.77 | 22 | 7,552 | ||||||||||||||||||||||||||
29.22 | 7.44 | 7.54 | 0.47 | 0.46 | 2.10 | 2.10 | 13 | 4,385,510 | ||||||||||||||||||||||||||
27.40 | 13.84 | 14.05 | 0.49 | 0.48 | 2.20 | 2.20 | 18 | 2,822,012 | ||||||||||||||||||||||||||
25.52 | (20.97 | ) | (21.05 | ) | 0.49 | 0.48 | 3.17 | 3.17 | 13 | 2,004,234 | ||||||||||||||||||||||||
33.18 | (2.44 | ) | (2.44 | ) | 0.49 | 0.48 | 2.27 | 2.27 | 11 | 2,874,838 | ||||||||||||||||||||||||
34.71 | (0.33 | ) | (0.61 | ) | 0.48 | 0.48 | 2.56 | 2.56 | 8 | 2,764,535 | ||||||||||||||||||||||||
35.19 | 0.79 | 1.71 | 0.50 | 0.48 | 2.02 | 2.03 | 5 | 566,532 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 33 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | $ | 43.49 | $ | 0.49 | (a) | $ | 2.57 | $ | 3.06 | $ | (0.58 | ) | $ | — | $ | — | $ | (0.58 | ) | |||||||||||||
Year ended October 31, 2016 | 43.30 | 1.34 | (a) | (0.02 | )(g) | 1.32 | (1.13 | ) | — | — | (1.13 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 45.84 | 1.13 | (a) | (2.67 | ) | (1.54 | ) | (1.00 | ) | — | — | (1.00 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 41.62 | 1.73 | (a) | 3.65 | 5.38 | (1.16 | ) | — | — | (1.16 | ) | |||||||||||||||||||||
For the period 10/08/13* through 10/31/13 | 40.00 | 0.01 | (a) | 1.61 | 1.62 | — | — | — | — | |||||||||||||||||||||||
FlexShares® Global Quality Real Estate Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 57.12 | 0.95 | (a) | 1.87 | 2.82 | (1.20 | ) | — | — | (1.20 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 57.47 | 1.90 | (a) | (0.58 | ) | 1.32 | (1.67 | ) | — | — | (1.67 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 55.24 | 1.36 | (a) | 2.25 | 3.61 | (1.38 | ) | — | — | (1.38 | ) | |||||||||||||||||||||
For the period 11/05/13* through 10/31/14 | 50.00 | 1.65 | (a) | 4.67 | 6.32 | (1.08 | ) | — | — | (1.08 | ) | |||||||||||||||||||||
FlexShares® Real Assets Allocation Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 25.63 | 0.33 | (a) | 1.19 | 1.52 | (0.40 | ) | — | — | (0.40 | ) | |||||||||||||||||||||
For the period 11/23/15* through 10/31/16 | 25.00 | 0.86 | (a) | 0.51 | (g) | 1.37 | (0.74 | ) | — | — | (0.74 | ) | ||||||||||||||||||||
FlexShares® Quality Dividend Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 37.11 | 0.66 | (a) | 3.81 | 4.47 | (0.62 | ) | — | — | (0.62 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 35.99 | 1.23 | (a) | 1.03 | 2.26 | (1.14 | ) | — | — | (1.14 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 35.77 | 1.08 | (a) | 0.14 | 1.22 | (1.00 | ) | — | — | (1.00 | ) | |||||||||||||||||||||
Year ended October 31, 2014 | 32.15 | 1.02 | (a) | 3.62 | 4.64 | (1.02 | ) | — | — | (1.02 | ) | |||||||||||||||||||||
For the period 12/14/12* through 10/31/13 | 25.00 | 0.83 | (a) | 6.78 | 7.61 | (0.46 | ) | — | — | (0.46 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
See Accompanying Notes to the Financial Statements.
34 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 45.97 | 7.10 | % | 7.13 | % | 0.48 | % | 0.47 | % | 2.21 | % | 2.22 | % | 7 | % | $ | 873,488 | |||||||||||||||||
43.49 | 3.09 | 3.26 | 0.48 | 0.47 | 3.09 | 3.10 | 14 | 669,676 | ||||||||||||||||||||||||||
43.30 | (3.40 | ) | (4.03 | ) | 0.48 | 0.47 | 2.52 | 2.53 | 15 | 467,681 | ||||||||||||||||||||||||
45.84 | 13.02 | 13.62 | 0.48 | 0.47 | 3.87 | 3.88 | 17 | 240,664 | ||||||||||||||||||||||||||
41.62 | 4.05 | 4.20 | 0.52 | 0.47 | 0.32 | 0.37 | 1 | 4,163 | ||||||||||||||||||||||||||
58.74 | 5.07 | 4.96 | 0.46 | 0.45 | 3.36 | 3.36 | 29 | 205,606 | ||||||||||||||||||||||||||
57.12 | 2.28 | 2.44 | 0.46 | 0.45 | 3.26 | 3.27 | 57 | 197,049 | ||||||||||||||||||||||||||
57.47 | 6.60 | 5.93 | 0.46 | 0.45 | 2.39 | 2.40 | 81 | 132,184 | ||||||||||||||||||||||||||
55.24 | 12.79 | 13.51 | 0.47 | 0.45 | 3.16 | 3.18 | 44 | 58,003 | ||||||||||||||||||||||||||
26.75 | 6.04 | 6.27 | 0.70 | (i) | 0.12 | (i) | 1.98 | 2.55 | 15 | 2,675 | ||||||||||||||||||||||||
25.63 | 5.56 | 5.60 | 0.72 | (i) | 0.11 | (i) | 3.03 | 3.64 | 11 | 1,282 | ||||||||||||||||||||||||
40.96 | 12.08 | 12.02 | 0.38 | 0.37 | 3.33 | 3.33 | 37 | 1,695,708 | ||||||||||||||||||||||||||
37.11 | 6.41 | 6.43 | 0.38 | 0.37 | 3.38 | 3.38 | 85 | 1,438,149 | ||||||||||||||||||||||||||
35.99 | 3.43 | 3.52 | 0.38 | 0.37 | 2.99 | 2.99 | 86 | 703,615 | ||||||||||||||||||||||||||
35.77 | 14.61 | 14.47 | 0.38 | 0.37 | 2.99 | 3.00 | 67 | 586,667 | ||||||||||||||||||||||||||
32.15 | 30.67 | 30.79 | 0.38 | 0.37 | 3.16 | 3.17 | 54 | 282,930 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 35 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Quality Dividend Defensive Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | $ | 36.82 | $ | 0.61 | (a) | $ | 3.34 | $ | 3.95 | $ | (0.56 | ) | $ | — | $ | — | $ | (0.56 | ) | |||||||||||||
Year ended October 31, 2016 | 35.81 | 1.11 | (a) | 0.99 | 2.10 | (1.09 | ) | — | — | (1.09 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 34.99 | 1.03 | (a) | 0.72 | 1.75 | (0.93 | ) | — | — | (0.93 | ) | |||||||||||||||||||||
Year ended October 31, 2014 | 31.42 | 0.96 | (a) | 3.62 | 4.58 | (1.01 | ) | — | — | (1.01 | ) | |||||||||||||||||||||
For the period 12/14/12* through 10/31/13 | 25.00 | 0.79 | (a) | 6.05 | 6.84 | (0.42 | ) | — | — | (0.42 | ) | |||||||||||||||||||||
FlexShares® Quality Dividend Dynamic Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 35.32 | 0.61 | (a) | 4.52 | 5.13 | (0.54 | ) | — | — | (0.54 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 35.14 | 1.11 | (a) | 0.31 | (g) | 1.42 | (1.24 | ) | — | — | (1.24 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 35.83 | 1.14 | (a) | (0.82 | ) | 0.32 | (1.01 | ) | — | — | (1.01 | ) | ||||||||||||||||||||
Year ended October 31, 2014 | 32.06 | 0.98 | (a) | 3.72 | 4.70 | (0.93 | ) | — | — | (0.93 | ) | |||||||||||||||||||||
For the period 12/14/12* through 10/31/13 | 25.00 | 0.84 | (a) | 6.77 | 7.61 | (0.55 | ) | — | — | (0.55 | ) | |||||||||||||||||||||
FlexShares® International Quality Dividend Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 22.45 | 0.44 | (a) | 2.08 | 2.52 | (0.27 | ) | — | — | (0.27 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 23.03 | 0.92 | (a) | (0.68 | ) | 0.24 | (0.82 | ) | — | — | (0.82 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 26.15 | 1.01 | (a) | (3.18 | ) | (2.17 | ) | (0.95 | ) | — | — | (0.95 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 27.00 | 1.25 | (a) | (1.06 | ) | 0.19 | (1.04 | ) | — | — | (1.04 | ) | ||||||||||||||||||||
For the period 04/12/13* through 10/31/13 | 25.00 | 0.46 | (a) | 1.82 | 2.28 | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||||
FlexShares® International Quality Dividend Defensive Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 22.16 | 0.44 | (a) | 1.45 | 1.89 | (0.26 | ) | — | — | (0.26 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 22.54 | 0.83 | (a) | (0.35 | ) | 0.48 | (0.86 | ) | — | — | (0.86 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 25.55 | 0.94 | (a) | (3.04 | ) | (2.10 | ) | (0.91 | ) | — | — | (0.91 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 26.66 | 1.23 | (a) | (1.32 | ) | (0.09 | ) | (1.02 | ) | — | — | (1.02 | ) | |||||||||||||||||||
For the period 04/12/13* through 10/31/13 | 25.00 | 0.44 | (a) | 1.58 | 2.02 | (0.36 | ) | — | — | (0.36 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
See Accompanying Notes to the Financial Statements.
36 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 40.21 | 10.76 | % | 10.81 | % | 0.38 | % | 0.37 | % | 3.11 | % | 3.12 | % | 41 | % | $ | 305,598 | |||||||||||||||||
36.82 | 5.96 | 5.96 | 0.38 | 0.37 | 3.09 | 3.10 | 72 | 252,223 | ||||||||||||||||||||||||||
35.81 | 5.04 | 5.13 | 0.38 | 0.37 | 2.87 | 2.88 | 92 | 191,606 | ||||||||||||||||||||||||||
34.99 | 14.79 | 14.47 | 0.38 | 0.37 | 2.88 | 2.89 | 73 | 122,462 | ||||||||||||||||||||||||||
31.42 | 27.54 | 27.79 | 0.38 | 0.37 | 3.02 | 3.03 | 54 | 43,983 | ||||||||||||||||||||||||||
39.91 | 14.57 | 14.44 | 0.38 | 0.37 | 3.13 | 3.14 | 29 | 67,849 | ||||||||||||||||||||||||||
35.32 | 4.16 | 4.43 | 0.38 | 0.37 | 3.23 | 3.25 | 69 | 52,979 | ||||||||||||||||||||||||||
35.14 | 0.89 | 0.78 | 0.38 | 0.37 | 3.15 | 3.16 | 87 | 73,804 | ||||||||||||||||||||||||||
35.83 | 14.78 | 14.68 | 0.38 | 0.37 | 2.82 | 2.84 | 75 | 93,151 | ||||||||||||||||||||||||||
32.06 | 30.69 | 30.74 | 0.38 | 0.37 | 3.22 | 3.23 | 67 | 12,825 | ||||||||||||||||||||||||||
24.70 | 11.35 | 11.60 | 0.48 | 0.47 | 3.85 | 3.86 | 31 | 706,551 | ||||||||||||||||||||||||||
22.45 | 1.16 | 2.05 | 0.48 | 0.47 | 4.17 | 4.18 | 68 | 496,050 | ||||||||||||||||||||||||||
23.03 | (8.45 | ) | (9.95 | ) | 0.48 | 0.47 | 4.08 | 4.09 | 77 | 430,590 | ||||||||||||||||||||||||
26.15 | 0.53 | 1.11 | 0.48 | 0.47 | 4.56 | 4.57 | 61 | 329,485 | ||||||||||||||||||||||||||
27.00 | 9.22 | 9.58 | 0.48 | 0.47 | 3.24 | 3.25 | 26 | 75,610 | ||||||||||||||||||||||||||
23.79 | 8.63 | 8.56 | 0.48 | 0.47 | 3.98 | 3.99 | 32 | 83,254 | ||||||||||||||||||||||||||
22.16 | 2.24 | 3.39 | 0.48 | 0.47 | 3.78 | 3.79 | 73 | 77,561 | ||||||||||||||||||||||||||
22.54 | (8.37 | ) | (9.81 | ) | 0.48 | 0.47 | 3.86 | 3.87 | 77 | 87,893 | ||||||||||||||||||||||||
25.55 | (0.51 | ) | (0.33 | ) | 0.48 | 0.47 | 4.58 | 4.59 | 69 | 66,441 | ||||||||||||||||||||||||
26.66 | 8.20 | 8.85 | 0.49 | 0.47 | 3.16 | 3.18 | 27 | 15,999 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 37 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® International Quality Dividend Dynamic Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | $ | 23.47 | $ | 0.47 | (a) | $ | 2.38 | $ | 2.85 | $ | (0.21 | ) | $ | — | $ | — | $ | (0.21 | ) | |||||||||||||
Year ended October 31, 2016 | 23.82 | 0.83 | (a) | (0.13 | ) | 0.70 | (0.98 | ) | — | (0.07 | ) | (1.05 | ) | |||||||||||||||||||
Year ended October 31, 2015 | 26.50 | 0.88 | (a) | (2.50 | ) | (1.62 | ) | (1.06 | ) | — | — | (1.06 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 27.34 | 0.99 | (a) | (1.00 | ) | (0.01 | ) | (0.83 | ) | — | — | (0.83 | ) | |||||||||||||||||||
For the period 04/12/13* through 10/31/13 | 25.00 | 0.50 | (a) | 2.35 | 2.85 | (0.51 | ) | — | — | (0.51 | ) | |||||||||||||||||||||
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 24.82 | 0.23 | (a) | (0.10 | ) | 0.13 | (0.15 | ) | — | — | (0.15 | ) | ||||||||||||||||||||
Year ended October 31, 2016 | 24.38 | 0.15 | (a) | 0.47 | 0.62 | (0.16 | ) | — | (0.02 | ) | (0.18 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 24.73 | (0.10 | )(a) | (0.23 | ) | (0.33 | ) | — | — | (0.02 | ) | (0.02 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 24.97 | 0.10 | (a) | (0.15 | ) | (0.05 | ) | (0.10 | ) | — | (0.09 | ) | (0.19 | ) | ||||||||||||||||||
Year ended October 31, 2013 | 25.43 | 0.03 | (a) | (0.38 | ) | (0.35 | ) | (0.05 | ) | (0.01 | ) | (0.05 | ) | (0.11 | ) | |||||||||||||||||
Year ended October 31, 2012 | 25.14 | 0.15 | (a) | 0.39 | 0.54 | (0.22 | ) | (0.03 | ) | — | (0.25 | ) | ||||||||||||||||||||
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 25.45 | 0.28 | (a) | (0.25 | ) | 0.03 | (0.20 | ) | — | — | (0.20 | ) | ||||||||||||||||||||
Year ended October 31, 2016 | 24.56 | 0.30 | (a) | 0.88 | 1.18 | (0.27 | ) | — | (0.02 | ) | (0.29 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 24.87 | 0.05 | (a) | (0.30 | ) | (0.25 | ) | (0.05 | ) | — | (0.01 | ) | (0.06 | ) | ||||||||||||||||||
Year ended October 31, 2014 | 25.29 | 0.21 | (a) | (0.32 | ) | (0.11 | ) | (0.24 | ) | — | (0.07 | ) | (0.31 | ) | ||||||||||||||||||
Year ended October 31, 2013 | 26.30 | 0.08 | (a) | (0.91 | ) | (0.83 | ) | (0.08 | ) | (0.10 | ) | — | (0.18 | ) | ||||||||||||||||||
Year ended October 31, 2012 | 25.03 | 0.24 | (a) | 1.31 | 1.55 | (0.27 | ) | (0.01 | ) | — | (0.28 | ) | ||||||||||||||||||||
FlexShares® Disciplined Duration MBS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 24.74 | 0.19 | (a) | (0.44 | ) | (0.25 | ) | (0.38 | ) | — | — | (0.38 | ) | |||||||||||||||||||
Year ended October 31, 2016 | 24.87 | 0.45 | (a) | 0.29 | 0.74 | (0.87 | ) | — | — | (0.87 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 25.12 | 0.37 | (a) | 0.06 | (g) | 0.43 | (0.68 | ) | 0.00 | (h) | — | (0.68 | ) | |||||||||||||||||||
For the period 09/03/14* through 10/31/14 | 25.00 | 0.09 | (a) | 0.09 | 0.18 | (0.06 | ) | — | — | (0.06 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
See Accompanying Notes to the Financial Statements.
38 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 26.11 | 12.18 | % | 12.92 | % | 0.48 | % | 0.47 | % | 3.83 | % | 3.85 | % | 30 | % | $ | 57,447 | |||||||||||||||||
23.47 | 3.17 | 3.96 | 0.49 | 0.47 | 3.70 | 3.72 | 75 | 18,777 | ||||||||||||||||||||||||||
23.82 | (6.28 | ) | (8.00 | ) | 0.48 | 0.47 | 3.43 | 3.43 | 89 | 35,726 | ||||||||||||||||||||||||
26.50 | (0.18 | ) | 0.80 | 0.49 | 0.47 | 3.55 | 3.58 | 45 | 113,945 | |||||||||||||||||||||||||
27.34 | 11.59 | 11.64 | 0.48 | 0.47 | 3.54 | 3.55 | 31 | 8,203 | ||||||||||||||||||||||||||
24.80 | 0.54 | 0.54 | 0.21 | 0.20 | 1.83 | 1.84 | 66 | 2,017,753 | ||||||||||||||||||||||||||
24.82 | 2.55 | 2.55 | 0.21 | 0.20 | 0.62 | 0.63 | 105 | 1,841,902 | ||||||||||||||||||||||||||
24.38 | (1.34 | ) | (1.46 | ) | 0.21 | 0.20 | (0.40 | ) | (0.39 | ) | 83 | 1,978,311 | ||||||||||||||||||||||
24.73 | (0.22 | ) | (0.10 | ) | 0.21 | 0.20 | 0.40 | 0.41 | 179 | 2,246,873 | ||||||||||||||||||||||||
24.97 | (1.41 | ) | (1.45 | ) | 0.20 | 0.20 | 0.11 | 0.11 | 125 | 1,975,018 | ||||||||||||||||||||||||
25.43 | 2.15 | 1.94 | 0.22 | 0.20 | 0.57 | 0.59 | 55 | 684,034 | ||||||||||||||||||||||||||
25.28 | 0.11 | 0.11 | 0.21 | 0.20 | 2.25 | 2.25 | 46 | 765,917 | ||||||||||||||||||||||||||
25.45 | 4.81 | 4.64 | 0.21 | 0.20 | 1.18 | 1.19 | 72 | 651,605 | ||||||||||||||||||||||||||
24.56 | (1.00 | ) | (1.04 | ) | 0.21 | 0.20 | 0.19 | 0.20 | 113 | 432,210 | ||||||||||||||||||||||||
24.87 | (0.49 | ) | (0.25 | ) | 0.21 | 0.20 | 0.82 | 0.83 | 150 | 308,335 | ||||||||||||||||||||||||
25.29 | (3.17 | ) | (3.32 | ) | 0.20 | 0.20 | 0.30 | 0.30 | 151 | 389,483 | ||||||||||||||||||||||||
26.30 | 6.13 | 5.87 | 0.22 | 0.20 | 0.90 | 0.92 | 60 | 374,730 | ||||||||||||||||||||||||||
24.11 | (1.02 | ) | (1.02 | ) | 0.21 | 0.20 | 1.56 | 1.57 | 33 | 36,163 | ||||||||||||||||||||||||
24.74 | 3.02 | 2.69 | 0.21 | — | (j) | 1.62 | 1.83 | (j) | 89 | 42,063 | ||||||||||||||||||||||||
24.87 | 1.74 | 2.02 | 0.22 | 0.20 | 1.44 | 1.46 | 179 | 23,627 | ||||||||||||||||||||||||||
25.12 | 0.72 | 0.76 | 0.27 | 0.20 | 2.18 | 2.26 | 23 | 5,025 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 39 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Credit-Scored US Corporate Bond Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | $ | 51.49 | $ | 0.61 | (a) | $ | (0.66 | ) | $ | (0.05 | ) | $ | (0.60 | ) | $ | (0.20 | ) | $ | — | $ | (0.80 | ) | ||||||||||
Year ended October 31, 2016 | 50.32 | 1.21 | (a) | 1.13 | 2.34 | (1.17 | ) | — | — | (1.17 | ) | |||||||||||||||||||||
For the period 11/12/14* through 10/31/15 | 50.00 | 1.12 | (a) | 0.18 | 1.30 | (0.98 | ) | — | — | (0.98 | ) | |||||||||||||||||||||
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 53.83 | 1.04 | (a) | (1.57 | ) | (0.53 | ) | (1.08 | ) | (0.68 | ) | — | (1.76 | ) | ||||||||||||||||||
Year ended October 31, 2016 | 50.29 | 2.14 | (a) | 3.56 | 5.70 | (2.16 | ) | — | — | (2.16 | ) | |||||||||||||||||||||
For the period 09/23/15* through 10/31/15 | 50.00 | 0.23 | (a) | 0.06 | 0.29 | — | — | — | — | |||||||||||||||||||||||
FlexShares® Ready Access Variable Income Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2017 (Unaudited) | 75.56 | 0.38 | (a) | (0.04 | )(g) | 0.34 | (0.36 | ) | — | — | (0.36 | ) | ||||||||||||||||||||
Year ended October 31, 2016 | 75.36 | 0.65 | (a) | 0.23 | 0.88 | (0.63 | ) | (0.05 | ) | — | (0.68 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 75.61 | 0.43 | (a) | (0.15 | ) | 0.28 | (0.42 | ) | (0.11 | ) | — | (0.53 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 75.32 | 0.39 | (a) | 0.29 | 0.68 | (0.39 | ) | — | — | (0.39 | ) | |||||||||||||||||||||
Year ended October 31, 2013 | 74.97 | 0.36 | (a) | 0.27 | 0.63 | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||||
For the period 10/09/12* through 10/31/12 | 75.00 | 0.01 | (a) | (0.04 | ) | (0.03 | ) | — | — | — | — | |||||||||||||||||||||
FlexShares® Core Select Bond Fund | ||||||||||||||||||||||||||||||||
For the period 11/18/16* through 04/30/17 (Unaudited) | 25.00 | 0.24 | (a) | (0.05 | ) | 0.19 | (0.30 | ) | — | — | (0.30 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
See Accompanying Notes to the Financial Statements.
40 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 50.64 | (0.07 | )% | (0.25 | )% | 0.23 | % | 0.22 | % | 2.44 | % | 2.45 | % | 40 | % | $ | 40,514 | |||||||||||||||||
51.49 | 4.71 | 4.70 | 0.24 | 0.22 | 2.34 | 2.36 | 59 | 36,041 | ||||||||||||||||||||||||||
50.32 | 2.61 | 2.78 | 0.26 | 0.22 | 2.26 | 2.30 | 69 | 12,581 | ||||||||||||||||||||||||||
51.54 | (0.90 | ) | (2.50 | ) | 0.24 | 0.22 | 4.07 | 4.09 | 34 | 10,308 | ||||||||||||||||||||||||
53.83 | 11.60 | 12.75 | 0.25 | 0.22 | 4.01 | 4.04 | 80 | 13,457 | ||||||||||||||||||||||||||
50.29 | 0.56 | 1.16 | 0.27 | 0.22 | 4.38 | 4.43 | — | 5,029 | ||||||||||||||||||||||||||
75.54 | 0.45 | 0.40 | 0.26 | 0.25 | 1.02 | 1.02 | 42 | 173,733 | ||||||||||||||||||||||||||
75.56 | 1.19 | 1.18 | 0.26 | 0.25 | 0.86 | 0.87 | 59 | 109,564 | ||||||||||||||||||||||||||
75.36 | 0.36 | 0.28 | 0.26 | 0.25 | 0.56 | 0.57 | 38 | 97,962 | ||||||||||||||||||||||||||
75.61 | 0.90 | 1.04 | 0.26 | 0.25 | 0.51 | 0.52 | 135 | 75,611 | ||||||||||||||||||||||||||
75.32 | 0.84 | 4.97 | 0.26 | 0.25 | 0.47 | 0.47 | 76 | 41,423 | ||||||||||||||||||||||||||
74.97 | (0.04 | ) | (3.96 | ) | 0.27 | 0.25 | 0.14 | 0.16 | 2 | 7,497 | ||||||||||||||||||||||||
| 24.89 | 0.78 | 0.90 | 0.42 | (i) | 0.17 | (i) | 1.91 | 2.17 | 39 | 3,111 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 41 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.0% | ||||||||
Aerospace & Defense – 1.7% | ||||||||
AAR Corp.(a) | 6,592 | $ | 237,246 | |||||
Aerojet Rocketdyne Holdings, Inc.* (a) | 10,506 | 235,439 | ||||||
Aerovironment, Inc.* (a) | 1,442 | 41,198 | ||||||
Arconic, Inc.(a) | 9,064 | 247,719 | ||||||
Astronics Corp.* (a) | 873 | 28,381 | ||||||
Astronics Corp., Class B* | 296 | 9,593 | ||||||
Axon Enterprise, Inc.* (a) | 4,326 | 106,333 | ||||||
Boeing Co. (The) | 13,184 | 2,436,799 | ||||||
BWX Technologies, Inc. | 1,648 | 81,032 | ||||||
Curtiss-Wright Corp. | 2,884 | 269,539 | ||||||
Esterline Technologies Corp.* (a) | 7,622 | 697,032 | ||||||
General Dynamics Corp. | 6,180 | 1,197,622 | ||||||
HEICO Corp.(a) | 4,376 | 311,002 | ||||||
Hexcel Corp.(a) | 6,180 | 319,815 | ||||||
Huntington Ingalls Industries, Inc. | 2,884 | 579,367 | ||||||
KLX, Inc.* (a) | 13,802 | 652,835 | ||||||
Kratos Defense & Security Solutions, Inc.* | 10,506 | 80,056 | ||||||
L3 Technologies, Inc. | 2,678 | 460,000 | ||||||
Lockheed Martin Corp. | 6,592 | 1,776,214 | ||||||
Mercury Systems, Inc.* (a) | 3,090 | 115,504 | ||||||
Moog, Inc., Class A* | 8,858 | 608,102 | ||||||
National Presto Industries, Inc. | 412 | 42,992 | ||||||
Northrop Grumman Corp. | 4,738 | 1,165,359 | ||||||
Orbital ATK, Inc. | 3,914 | 387,486 | ||||||
Raytheon Co. | 8,652 | 1,342,877 | ||||||
Rockwell Collins, Inc. | 2,996 | 311,854 | ||||||
Spirit AeroSystems Holdings, Inc., Class A | 8,240 | 470,998 | ||||||
Teledyne Technologies, Inc.* (a) | 2,266 | 305,525 | ||||||
Textron, Inc. | 10,300 | 480,598 | ||||||
TransDigm Group, Inc. | 618 | 152,479 | ||||||
Triumph Group, Inc.(a) | 14,626 | 383,201 | ||||||
United Technologies Corp. | 21,012 | 2,500,218 | ||||||
18,034,415 |
Shares | Value | |||||||
Air Freight & Logistics – 0.6% | ||||||||
Air Transport Services Group, Inc.* (a) | 16,274 | $ | 299,279 | |||||
Atlas Air Worldwide Holdings, Inc.* | 10,712 | 621,296 | ||||||
CH Robinson Worldwide, Inc.(a) | 4,120 | 299,524 | ||||||
Echo Global Logistics, Inc.* | 1,030 | 19,313 | ||||||
Expeditors International of Washington, Inc.(a) | 3,914 | 219,536 | ||||||
FedEx Corp. | 7,416 | 1,406,815 | ||||||
Forward Air Corp. | 2,678 | 142,389 | ||||||
Hub Group, Inc., Class A* | 6,386 | 250,012 | ||||||
Park-Ohio Holdings Corp. | 1,030 | 40,531 | ||||||
United Parcel Service, Inc., Class B | 16,068 | 1,726,667 | ||||||
XPO Logistics, Inc.* (a) | 23,896 | 1,180,223 | ||||||
6,205,585 | ||||||||
Airlines – 0.9% | ||||||||
Alaska Air Group, Inc. | 5,768 | 490,799 | ||||||
Allegiant Travel Co.(a) | 3,502 | 509,191 | ||||||
American Airlines Group, Inc.(a) | 27,192 | 1,158,923 | ||||||
Delta Air Lines, Inc. | 34,402 | 1,563,227 | ||||||
Hawaiian Holdings, Inc.* | 13,390 | 727,077 | ||||||
JetBlue Airways Corp.* | 19,982 | 436,207 | ||||||
SkyWest, Inc. | 19,158 | 712,677 | ||||||
Southwest Airlines Co. | 24,514 | 1,378,177 | ||||||
Spirit Airlines, Inc.* (a) | 21,836 | 1,250,548 | ||||||
United Continental Holdings, Inc.* | 15,038 | 1,055,818 | ||||||
9,282,644 | ||||||||
Auto Components – 0.8% | ||||||||
Adient plc | 2,472 | 181,840 | ||||||
American Axle & Manufacturing Holdings, Inc.* | 25,646 | 451,113 | ||||||
Autoliv, Inc.(a) | 3,296 | 330,226 | ||||||
BorgWarner, Inc.(a) | 12,154 | 513,871 | ||||||
Cooper Tire & Rubber Co.(a) | 16,892 | 646,964 |
See Accompanying Notes to the Financial Statements.
42 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Cooper-Standard Holdings, Inc.* | 4,120 | $ | 465,849 | |||||
Dana, Inc.(a) | 52,118 | 1,012,132 | ||||||
Delphi Automotive plc | 11,536 | 927,494 | ||||||
Dorman Products, Inc.* (a) | 1,648 | 137,031 | ||||||
Gentex Corp.(a) | 8,240 | 170,156 | ||||||
Gentherm, Inc.* (a) | 6,386 | 237,240 | ||||||
Goodyear Tire & Rubber Co. (The) | 16,480 | 597,070 | ||||||
LCI Industries(a) | 1,648 | 166,695 | ||||||
Lear Corp. | 2,060 | 293,880 | ||||||
Modine Manufacturing Co.* | 10,918 | 132,108 | ||||||
Motorcar Parts of America, Inc.* (a) | 2,884 | 87,443 | ||||||
Standard Motor Products, Inc. | 3,090 | 157,065 | ||||||
Superior Industries International, Inc.(a) | 1,442 | 31,364 | ||||||
Tenneco, Inc. | 18,540 | 1,168,576 | ||||||
Visteon Corp.* | 8,652 | 890,723 | ||||||
8,598,840 | ||||||||
Automobiles – 0.7% | ||||||||
Ford Motor Co. | 214,858 | 2,464,421 | ||||||
General Motors Co. | 69,834 | 2,419,050 | ||||||
Harley-Davidson, Inc. | 9,270 | 526,629 | ||||||
Tesla, Inc.* (a) | 3,090 | 970,476 | ||||||
Thor Industries, Inc. | 6,386 | 614,205 | ||||||
Winnebago Industries, Inc. | 3,914 | 112,332 | ||||||
7,107,113 | ||||||||
Banks – 8.7% | ||||||||
1st Source Corp. | 3,296 | 159,230 | ||||||
Ameris Bancorp(a) | 4,120 | 194,052 | ||||||
Associated Banc-Corp.(a) | 43,672 | 1,087,433 | ||||||
Banc of California, Inc.(a) | 10,300 | 223,510 | ||||||
BancFirst Corp. | 1,442 | 138,504 | ||||||
BancorpSouth, Inc.(a) | 7,416 | 225,817 | ||||||
Bank of America Corp. | 476,272 | 11,116,188 | ||||||
Bank of Hawaii Corp.(a) | 3,296 | 268,558 | ||||||
Bank of the Ozarks, Inc. | 5,562 | 264,028 | ||||||
BankUnited, Inc. | 23,690 | 836,020 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Banner Corp.(a) | 3,090 | $ | 170,568 | |||||
BB&T Corp. | 37,904 | 1,636,695 | ||||||
Berkshire Hills Bancorp, Inc. | 4,738 | 177,675 | ||||||
BOK Financial Corp. | 206 | 17,364 | ||||||
Boston Private Financial Holdings, Inc. | 5,768 | 89,981 | ||||||
Brookline Bancorp, Inc.(a) | 13,390 | 194,825 | ||||||
Bryn Mawr Bank Corp.(a) | 2,060 | 88,374 | ||||||
Capital Bank Financial Corp., Class A | 4,326 | 179,529 | ||||||
Cathay General Bancorp(a) | 13,184 | 501,651 | ||||||
Central Pacific Financial Corp. | 3,296 | 103,099 | ||||||
Chemical Financial Corp.(a) | 9,888 | 469,186 | ||||||
CIT Group, Inc. | 12,360 | 572,392 | ||||||
Citigroup, Inc. | 134,312 | 7,940,525 | ||||||
Citizens Financial Group, Inc. | 26,780 | 983,094 | ||||||
City Holding Co. | 2,472 | 175,734 | ||||||
Columbia Banking System, Inc.(a) | 7,210 | 284,867 | ||||||
Comerica, Inc. | 4,532 | 320,412 | ||||||
Commerce Bancshares, Inc. | 1,292 | 70,995 | ||||||
Community Bank System, Inc.(a) | 4,944 | 276,617 | ||||||
Community Trust Bancorp, Inc. | 1,854 | 83,337 | ||||||
Cullen/Frost Bankers, Inc.(a) | 412 | 38,889 | ||||||
Customers Bancorp, Inc.* | 2,678 | 82,831 | ||||||
CVB Financial Corp.(a) | 13,596 | 292,858 | ||||||
Eagle Bancorp, Inc.* | 2,266 | 135,733 | ||||||
East West Bancorp, Inc. | 2,678 | 145,335 | ||||||
Fifth Third Bancorp | 36,050 | 880,701 | ||||||
First BanCorp* | 36,050 | 211,974 | ||||||
First Citizens BancShares, Inc., Class A | 824 | 286,801 | ||||||
First Commonwealth Financial Corp. | 11,330 | 146,270 | ||||||
First Financial Bancorp(a) | 12,772 | 353,146 | ||||||
First Financial Bankshares, Inc.(a) | 4,120 | 164,594 | ||||||
First Horizon National Corp.(a) | 16,068 | 294,848 | ||||||
First Interstate BancSystem, Inc., Class A(a) | 4,326 | 163,306 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 43 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
First Merchants Corp.(a) | 7,210 | $ | 298,350 | |||||
First Midwest Bancorp, Inc. | 7,004 | 159,061 | ||||||
First Republic Bank | 3,296 | 304,748 | ||||||
Flushing Financial Corp. | 5,974 | 176,114 | ||||||
FNB Corp. | 79,310 | 1,129,374 | ||||||
Fulton Financial Corp.(a) | 16,068 | 296,455 | ||||||
Glacier Bancorp, Inc.(a) | 5,356 | 180,926 | ||||||
Great Western Bancorp, Inc.(a) | 1,030 | 42,436 | ||||||
Hancock Holding Co. | 20,600 | 962,020 | ||||||
Hanmi Financial Corp. | 3,090 | 89,764 | ||||||
Heartland Financial USA, Inc. | 1,030 | 49,440 | ||||||
Hilltop Holdings, Inc.(a) | 25,544 | 710,379 | ||||||
Home BancShares, Inc.(a) | 9,476 | 241,164 | ||||||
Hope Bancorp, Inc. | 30,694 | 562,007 | ||||||
Huntington Bancshares, Inc. | 68,392 | 879,521 | ||||||
IBERIABANK Corp. | 11,536 | 915,382 | ||||||
Independent Bank Corp.(a) | 4,532 | 286,876 | ||||||
International Bancshares Corp. | 16,274 | 608,648 | ||||||
Investors Bancorp, Inc.(a) | 14,832 | 205,423 | ||||||
JPMorgan Chase & Co. | 169,538 | 14,749,806 | ||||||
KeyCorp | 65,302 | 1,191,108 | ||||||
Lakeland Financial Corp. | 4,944 | 225,743 | ||||||
LegacyTexas Financial Group, | 12,154 | 459,543 | ||||||
M&T Bank Corp. | 6,180 | 960,434 | ||||||
MB Financial, Inc.(a) | 6,180 | 262,712 | ||||||
NBT Bancorp, Inc.(a) | 7,004 | 267,413 | ||||||
OFG Bancorp | 25,132 | 294,044 | ||||||
Old National Bancorp | 31,312 | 526,042 | ||||||
Opus Bank | 1,030 | 23,227 | ||||||
PacWest Bancorp(a) | 5,768 | 284,882 | ||||||
Park National Corp. | 2,266 | 238,904 | ||||||
Peoples Bancorp, Inc.(a) | 1,030 | 34,484 | ||||||
People’s United Financial, Inc.(a) | 6,592 | 115,162 | ||||||
Pinnacle Financial Partners, | 3,708 | 237,312 | ||||||
PNC Financial Services Group, Inc. (The) | 21,218 | 2,540,855 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Popular, Inc. | 29,046 | $ | 1,217,318 | |||||
PrivateBancorp, Inc. | 5,356 | 309,416 | ||||||
Prosperity Bancshares, Inc.(a) | 10,094 | 678,317 | ||||||
Regions Financial Corp. | 43,054 | 591,993 | ||||||
Renasant Corp.(a) | 4,532 | 192,157 | ||||||
S&T Bancorp, Inc.(a) | 6,592 | 237,048 | ||||||
Sandy Spring Bancorp, Inc. | 5,356 | 231,647 | ||||||
Signature Bank* | 1,648 | 228,166 | ||||||
Simmons First National Corp., Class A(a) | 1,854 | 101,321 | ||||||
South State Corp.(a) | 2,472 | 217,907 | ||||||
Southside Bancshares, Inc.(a) | 3,709 | 128,776 | ||||||
Southwest Bancorp, Inc. | 1,236 | 32,074 | ||||||
State Bank Financial Corp.(a) | 3,090 | 82,997 | ||||||
Sterling Bancorp | 11,536 | 268,212 | ||||||
Stock Yards Bancorp, Inc.(a) | 4,326 | 177,366 | ||||||
SunTrust Banks, Inc. | 18,746 | 1,064,960 | ||||||
SVB Financial Group* (a) | 1,854 | 326,193 | ||||||
Synovus Financial Corp. | 8,858 | 370,264 | ||||||
TCF Financial Corp. | 41,406 | 683,613 | ||||||
Texas Capital Bancshares, Inc.* | 2,678 | 203,796 | ||||||
Tompkins Financial Corp.(a) | 2,884 | 238,420 | ||||||
TriCo Bancshares | 1,442 | 51,133 | ||||||
Trustmark Corp.(a) | 14,008 | 465,346 | ||||||
UMB Financial Corp. | 2,678 | 194,128 | ||||||
Umpqua Holdings Corp. | 60,564 | 1,070,166 | ||||||
Union Bankshares Corp. | 8,446 | 289,191 | ||||||
United Bankshares, Inc.(a) | 11,184 | 446,242 | ||||||
United Community Banks, Inc. | 4,326 | 118,316 | ||||||
US Bancorp | 70,658 | 3,623,342 | ||||||
Valley National Bancorp(a) | 69,010 | 811,558 | ||||||
Washington Trust Bancorp, Inc.(a) | 3,090 | 152,028 | ||||||
Webster Financial Corp.(a) | 6,386 | 324,473 | ||||||
Wells Fargo & Co. | 206,000 | 11,091,040 | ||||||
WesBanco, Inc.(a) | 7,210 | 287,030 | ||||||
Westamerica Bancorporation | 206 | 11,334 | ||||||
Western Alliance Bancorp* | 6,592 | 315,757 | ||||||
Wintrust Financial Corp. | 4,326 | 306,540 | ||||||
Zions Bancorporation(a) | 4,532 | 181,416 | ||||||
89,878,306 |
See Accompanying Notes to the Financial Statements.
44 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Beverages – 1.1% | ||||||||
Boston Beer Co., Inc. (The), Class A* (a) | 412 | $ | 59,472 | |||||
Brown-Forman Corp., Class B(a) | 5,562 | 263,194 | ||||||
Coca-Cola Bottling Co. Consolidated | 618 | 130,929 | ||||||
Coca-Cola Co. (The) | 106,090 | 4,577,783 | ||||||
Constellation Brands, Inc., Class A | 3,296 | 568,692 | ||||||
Dr Pepper Snapple Group, Inc. | 3,708 | 339,838 | ||||||
Molson Coors Brewing Co., Class B | 4,326 | 414,820 | ||||||
Monster Beverage Corp.* | 10,712 | 486,111 | ||||||
PepsiCo, Inc. | 36,256 | 4,107,080 | ||||||
10,947,919 | ||||||||
Biotechnology – 2.6% | ||||||||
AbbVie, Inc. | 72,512 | 4,781,441 | ||||||
ACADIA Pharmaceuticals, Inc.* (a) | 4,738 | 162,656 | ||||||
Acceleron Pharma, Inc.* (a) | 206 | 6,802 | ||||||
Achillion Pharmaceuticals, Inc.* (a) | 1,236 | 4,215 | ||||||
Acorda Therapeutics, Inc.* (a) | 2,060 | 33,269 | ||||||
Aduro Biotech, Inc.* (a) | 1,236 | 11,927 | ||||||
Advaxis, Inc.* (a) | 2,678 | 22,924 | ||||||
Alder Biopharmaceuticals, Inc.* | 4,738 | 94,997 | ||||||
Alexion Pharmaceuticals, Inc.* | 6,180 | 789,680 | ||||||
Alkermes plc* | 2,060 | 119,995 | ||||||
Alnylam Pharmaceuticals, Inc.* (a) | 2,678 | 143,541 | ||||||
AMAG Pharmaceuticals, Inc.* (a) | 8,652 | 211,109 | ||||||
Amgen, Inc. | 34,814 | 5,685,822 | ||||||
Amicus Therapeutics, Inc.* (a) | 11,536 | 88,596 | ||||||
Arena Pharmaceuticals, Inc.* | 618 | 828 | ||||||
Array BioPharma, Inc.* (a) | 50,058 | 434,003 |
Shares | Value | |||||||
Biotechnology – (continued) | ||||||||
Arrowhead Pharmaceuticals, Inc.* (a) | 3,502 | $ | 5,428 | |||||
Biogen, Inc.* | 4,532 | 1,229,124 | ||||||
BioMarin Pharmaceutical, Inc.* | 3,502 | 335,632 | ||||||
Bluebird Bio, Inc.* (a) | 824 | 73,295 | ||||||
Celgene Corp.* | 18,952 | 2,350,996 | ||||||
Clovis Oncology, Inc.* | 412 | 23,851 | ||||||
Coherus Biosciences, Inc.* | 412 | 7,910 | ||||||
Dynavax Technologies Corp.* (a) | 10,918 | 60,595 | ||||||
Eagle Pharmaceuticals, Inc.* (a) | 412 | 37,323 | ||||||
Emergent BioSolutions, Inc.* (a) | 2,060 | 61,615 | ||||||
Esperion Therapeutics, Inc.* | 4,738 | 169,384 | ||||||
Five Prime Therapeutics, Inc.* (a) | 7,416 | 258,522 | ||||||
Geron Corp.* (a) | 206 | 527 | ||||||
Gilead Sciences, Inc. | 63,242 | 4,335,239 | ||||||
Halozyme Therapeutics, Inc.* (a) | 3,708 | 51,690 | ||||||
Heron Therapeutics, Inc.* (a) | 5,768 | 88,539 | ||||||
Idera Pharmaceuticals, Inc.* | 5,150 | 12,102 | ||||||
Ignyta, Inc.* | 5,562 | 49,224 | ||||||
Incyte Corp.* | 5,562 | 691,245 | ||||||
Insys Therapeutics, Inc.* (a) | 5,562 | 62,572 | ||||||
Intercept Pharmaceuticals, Inc.* (a) | 824 | 92,576 | ||||||
Intrexon Corp.* (a) | 2,266 | 47,223 | ||||||
Ionis Pharmaceuticals, Inc.* (a) | 4,326 | 208,470 | ||||||
Ironwood Pharmaceuticals, Inc.* (a) | 1,030 | 16,810 | ||||||
Kite Pharma, Inc.* | 1,648 | 135,268 | ||||||
La Jolla Pharmaceutical Co.* (a) | 618 | 17,922 | ||||||
Ligand Pharmaceuticals, Inc.* (a) | 1,648 | 183,208 | ||||||
Lion Biotechnologies, Inc.* | 4,738 | 32,455 | ||||||
Merrimack Pharmaceuticals, Inc.* (a) | 9,064 | 30,183 | ||||||
MiMedx Group, Inc.* (a) | 412 | 5,228 | ||||||
Myriad Genetics, Inc.* | 206 | 3,788 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 45 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
Neurocrine Biosciences, Inc.* (a) | 3,914 | $ | 209,008 | |||||
Novavax, Inc.* (a) | 824 | 672 | ||||||
Ophthotech Corp.* | 4,944 | 14,684 | ||||||
OPKO Health, Inc.* (a) | 12,154 | 94,437 | ||||||
PDL BioPharma, Inc. | 60,152 | 135,342 | ||||||
Progenics Pharmaceuticals, Inc.* | 2,266 | 17,947 | ||||||
Puma Biotechnology, Inc.* | 618 | 25,091 | ||||||
Regeneron Pharmaceuticals, Inc.* | 2,060 | 800,289 | ||||||
Repligen Corp.* (a) | 1,854 | 68,209 | ||||||
Rigel Pharmaceuticals, Inc.* | 206 | 616 | ||||||
Sangamo Therapeutics, Inc.* (a) | 14,008 | 67,238 | ||||||
Sarepta Therapeutics, Inc.* | 1,854 | 67,226 | ||||||
Seattle Genetics, Inc.* | 3,090 | 211,047 | ||||||
TESARO, Inc.* (a) | 618 | 91,211 | ||||||
TG Therapeutics, Inc.* (a) | 2,266 | 25,039 | ||||||
Trevena, Inc.* | 1,236 | 4,042 | ||||||
Ultragenyx Pharmaceutical, Inc.* | 13,596 | 875,446 | ||||||
United Therapeutics Corp.* | 2,060 | 258,942 | ||||||
Vertex Pharmaceuticals, Inc.* | 7,416 | 877,313 | ||||||
ZIOPHARM Oncology, Inc.* (a) | 1,236 | 8,701 | ||||||
27,122,249 | ||||||||
Building Products – 0.5% | ||||||||
AAON, Inc.(a) | 4,120 | 150,998 | ||||||
American Woodmark Corp.* (a) | 1,236 | 113,588 | ||||||
AO Smith Corp. | 8,240 | 443,971 | ||||||
Apogee Enterprises, Inc.(a) | 2,266 | 123,497 | ||||||
Armstrong World Industries, Inc.* (a) | 206 | 9,630 | ||||||
Builders FirstSource, Inc.* (a) | 22,866 | 366,085 | ||||||
Fortune Brands Home & Security, Inc. | 2,678 | 170,696 | ||||||
Gibraltar Industries, Inc.* (a) | 2,060 | 80,855 | ||||||
Griffon Corp. | 5,974 | 143,376 | ||||||
Insteel Industries, Inc.(a) | 618 | 21,513 |
Shares | Value | |||||||
Building Products – (continued) | ||||||||
Johnson Controls International plc | 33,784 | $ | 1,404,401 | |||||
Lennox International, Inc.(a) | 2,266 | 374,774 | ||||||
Masco Corp. | 4,944 | 183,027 | ||||||
NCI Building Systems, Inc.* | 618 | 10,815 | ||||||
Owens Corning | 4,532 | 275,772 | ||||||
Patrick Industries, Inc.* (a) | 3,090 | 219,544 | ||||||
Ply Gem Holdings, Inc.* | 4,120 | 79,310 | ||||||
Quanex Building Products Corp.(a) | 412 | 8,405 | ||||||
Simpson Manufacturing Co., Inc. | 1,648 | 68,738 | ||||||
Trex Co., Inc.* | 2,472 | 180,926 | ||||||
Universal Forest Products, Inc. | 1,648 | 157,038 | ||||||
USG Corp.* (a) | 12,154 | 368,266 | ||||||
4,955,225 | ||||||||
Capital Markets – 2.7% | ||||||||
Actua Corp.* | 206 | 2,884 | ||||||
Affiliated Managers Group, Inc. | 1,648 | 272,892 | ||||||
Ameriprise Financial, Inc. | 5,562 | 711,102 | ||||||
Artisan Partners Asset Management, Inc., Class A(a) | 3,090 | 90,537 | ||||||
Bank of New York Mellon Corp. (The) | 30,694 | 1,444,460 | ||||||
BGC Partners, Inc., Class A | 51,500 | 586,070 | ||||||
BlackRock, Inc. | 3,502 | 1,346,764 | ||||||
CBOE Holdings, Inc. | 4,326 | 356,506 | ||||||
Charles Schwab Corp. (The) | 28,222 | 1,096,425 | ||||||
CME Group, Inc. | 8,446 | 981,341 | ||||||
Cohen & Steers, Inc.(a) | 824 | 32,878 | ||||||
Cowen Group, Inc., Class A* (a) | 17,495 | 278,170 | ||||||
Donnelley Financial Solutions, Inc.* (a) | 4,944 | 109,856 | ||||||
E*TRADE Financial Corp.* | 13,596 | 469,742 | ||||||
Eaton Vance Corp. | 1,030 | 44,218 | ||||||
Evercore Partners, Inc., Class A | 2,060 | 151,925 | ||||||
FactSet Research Systems, Inc.(a) | 824 | 134,526 |
See Accompanying Notes to the Financial Statements.
46 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Federated Investors, Inc., | 7,622 | $ | 204,422 | |||||
Financial Engines, Inc. | 1,442 | 61,285 | ||||||
Franklin Resources, Inc. | 10,506 | 452,914 | ||||||
Goldman Sachs Group, Inc. (The) | 17,716 | 3,964,841 | ||||||
Interactive Brokers Group, Inc., Class A(a) | 5,974 | 208,074 | ||||||
Intercontinental Exchange, Inc. | 14,420 | 868,113 | ||||||
INTL. FCStone, Inc.* | 8,858 | 330,846 | ||||||
Invesco Ltd. | 21,012 | 692,135 | ||||||
Investment Technology Group, Inc. | 5,768 | 114,841 | ||||||
Janus Capital Group, Inc.(a) | 44,084 | 602,187 | ||||||
KCG Holdings, Inc., Class A* | 21,424 | 426,338 | ||||||
Legg Mason, Inc.(a) | 29,252 | 1,093,440 | ||||||
LPL Financial Holdings, Inc. | 23,072 | 969,947 | ||||||
MarketAxess Holdings, Inc. | 2,266 | 436,250 | ||||||
Moody’s Corp. | 4,326 | 511,852 | ||||||
Morgan Stanley | 69,834 | 3,028,700 | ||||||
Morningstar, Inc. | 206 | 15,065 | ||||||
MSCI, Inc. | 2,472 | 247,991 | ||||||
Nasdaq, Inc. | 1,854 | 127,685 | ||||||
Northern Trust Corp.(b) | 7,174 | 645,660 | ||||||
Piper Jaffray Cos. | 3,296 | 206,329 | ||||||
Raymond James Financial, Inc. | 2,060 | 153,511 | ||||||
S&P Global, Inc. | 5,562 | 746,365 | ||||||
SEI Investments Co. | 3,708 | 188,033 | ||||||
State Street Corp. | 14,008 | 1,175,271 | ||||||
Stifel Financial Corp.* (a) | 26,368 | 1,288,605 | ||||||
T Rowe Price Group, Inc. | 8,240 | 584,134 | ||||||
TD Ameritrade Holding Corp. | 3,914 | 149,789 | ||||||
Virtu Financial, Inc., Class A(a) | 18,746 | 288,688 | ||||||
Waddell & Reed Financial, Inc., Class A(a) | 25,956 | 466,948 | ||||||
28,360,555 |
Shares | Value | |||||||
Chemicals – 2.3% | ||||||||
A Schulman, Inc. | 9,064 | $ | 286,876 | |||||
AdvanSix, Inc.* | 5,974 | 162,851 | ||||||
AgroFresh Solutions, Inc.* (a) | 206 | 1,156 | ||||||
Air Products & Chemicals, Inc. | 4,738 | 665,689 | ||||||
Albemarle Corp. | 4,944 | 538,451 | ||||||
American Vanguard Corp. | 206 | 3,450 | ||||||
Ashland Global Holdings, Inc. | 1,442 | 178,087 | ||||||
Balchem Corp.(a) | 2,266 | 183,909 | ||||||
Cabot Corp. | 9,064 | 545,562 | ||||||
Calgon Carbon Corp.(a) | 618 | 8,992 | ||||||
Celanese Corp., Series A | 4,944 | 430,326 | ||||||
CF Industries Holdings, Inc.(a) | 3,502 | 93,643 | ||||||
Chemours Co. (The) | 17,098 | 688,878 | ||||||
Dow Chemical Co. (The) | 48,616 | 3,053,085 | ||||||
Eastman Chemical Co. | 7,210 | 574,997 | ||||||
Ecolab, Inc. | 6,180 | 797,776 | ||||||
EI du Pont de Nemours & Co. | 24,102 | 1,922,134 | ||||||
Ferro Corp.* | 11,742 | 210,417 | ||||||
Flotek Industries, Inc.* (a) | 618 | 7,422 | ||||||
FMC Corp.(a) | 8,034 | 588,330 | ||||||
FutureFuel Corp. | 206 | 3,185 | ||||||
GCP Applied Technologies, Inc.* | 14,832 | 487,973 | ||||||
HB Fuller Co.(a) | 2,266 | 119,713 | ||||||
Huntsman Corp. | 31,106 | 770,496 | ||||||
Innophos Holdings, Inc. | 5,150 | 246,891 | ||||||
Innospec, Inc. | 3,914 | 258,324 | ||||||
International Flavors & Fragrances, Inc.(a) | 1,236 | 171,297 | ||||||
Kraton Corp.* (a) | 7,416 | 242,577 | ||||||
Kronos Worldwide, Inc. | 11,742 | 205,720 | ||||||
LyondellBasell Industries NV, Class A | 14,420 | 1,222,239 | ||||||
Minerals Technologies, Inc. | 6,386 | 502,578 | ||||||
Monsanto Co. | 9,888 | 1,153,040 | ||||||
Mosaic Co. (The) | 19,776 | 532,568 | ||||||
NewMarket Corp.(a) | 206 | 96,964 | ||||||
Olin Corp.(a) | 12,154 | 390,508 | ||||||
OMNOVA Solutions, Inc.* | 1,442 | 13,699 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 47 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
PLATFORM SPECIALTY* (a) | 70,452 | $ | 998,305 | |||||
PolyOne Corp. | 15,244 | 597,717 | ||||||
PPG Industries, Inc. | 5,356 | 588,303 | ||||||
Praxair, Inc. | 5,974 | 746,631 | ||||||
Quaker Chemical Corp. | 1,854 | 268,088 | ||||||
Rayonier Advanced Materials, Inc. | 10,918 | 144,663 | ||||||
RPM International, Inc. | 2,472 | 129,928 | ||||||
Scotts Miracle-Gro Co. (The)(a) | 3,090 | 298,494 | ||||||
Sensient Technologies Corp. | 3,296 | 269,613 | ||||||
Sherwin-Williams Co. (The) | 2,060 | 689,441 | ||||||
Stepan Co. | 5,974 | 506,595 | ||||||
Tredegar Corp. | 618 | 10,599 | ||||||
Trinseo SA | 9,064 | 601,850 | ||||||
Tronox Ltd., Class A | 44,084 | 727,827 | ||||||
Valspar Corp. (The) | 1,236 | 138,976 | ||||||
Westlake Chemical Corp.(a) | 412 | 25,647 | ||||||
WR Grace & Co. | 824 | 57,449 | ||||||
24,159,929 | ||||||||
Commercial Services & Supplies – 0.9% | ||||||||
ABM Industries, Inc. | 5,974 | 258,017 | ||||||
ACCO Brands Corp.* | 22,042 | 314,099 | ||||||
Brady Corp., Class A | 5,974 | 232,687 | ||||||
Brink’s Co. (The) | 6,592 | 404,749 | ||||||
CECO Environmental Corp. | 5,356 | 60,469 | ||||||
Cintas Corp. | 2,678 | 327,975 | ||||||
Copart, Inc.* | 2,884 | 89,116 | ||||||
Covanta Holding Corp. | 824 | 11,989 | ||||||
Deluxe Corp.(a) | 13,596 | 977,688 | ||||||
Ennis, Inc. | 7,004 | 123,270 | ||||||
Essendant, Inc. | 4,326 | 72,244 | ||||||
Healthcare Services Group, Inc.(a) | 6,180 | 283,724 | ||||||
Herman Miller, Inc. | 9,064 | 300,018 | ||||||
HNI Corp. | 6,798 | 317,875 | ||||||
Interface, Inc.(a) | 2,472 | 49,193 | ||||||
KAR Auction Services, Inc. | 6,386 | 278,557 | ||||||
Kimball International, Inc., Class B | 7,416 | 131,782 | ||||||
Knoll, Inc.(a) | 5,150 | 123,394 |
Shares | Value | |||||||
Commercial Services & Supplies – (continued) | ||||||||
LSC Communications, Inc. | 7,004 | $ | 181,193 | |||||
Matthews International Corp., Class A(a) | 4,120 | 282,426 | ||||||
McGrath RentCorp | 618 | 21,513 | ||||||
Mobile Mini, Inc.(a) | 2,266 | 65,034 | ||||||
MSA Safety, Inc. | 1,442 | 112,260 | ||||||
Multi-Color Corp.(a) | 2,266 | 174,029 | ||||||
Pitney Bowes, Inc. | 60,564 | 804,896 | ||||||
Quad/Graphics, Inc. | 16,068 | 421,946 | ||||||
Republic Services, Inc. | 7,622 | 480,110 | ||||||
Rollins, Inc.(a) | 2,884 | 111,986 | ||||||
RR Donnelley & Sons Co. | 26,986 | 339,214 | ||||||
SP Plus Corp.* | 412 | 14,193 | ||||||
Steelcase, Inc., Class A | 13,596 | 231,812 | ||||||
Stericycle, Inc.* (a) | 618 | 52,740 | ||||||
Tetra Tech, Inc. | 6,592 | 289,718 | ||||||
UniFirst Corp.(a) | 1,648 | 229,402 | ||||||
US Ecology, Inc.(a) | 2,060 | 97,129 | ||||||
Viad Corp.(a) | 1,236 | 55,867 | ||||||
Waste Management, Inc. | 11,948 | 869,575 | ||||||
West Corp. | 4,944 | 131,955 | ||||||
9,323,844 | ||||||||
Communications Equipment – 1.3% | ||||||||
ADTRAN, Inc. | 206 | 4,120 | ||||||
Arista Networks, Inc.* (a) | 1,418 | 198,009 | ||||||
ARRIS International plc* | 5,974 | 155,264 | ||||||
Brocade Communications Systems, Inc. | 29,252 | 367,698 | ||||||
CalAmp Corp.* (a) | 1,030 | 18,478 | ||||||
Calix, Inc.* | 412 | 2,760 | ||||||
Ciena Corp.* (a) | 43,466 | 995,806 | ||||||
Cisco Systems, Inc. | 219,596 | 7,481,636 | ||||||
CommScope Holding Co., Inc.* | 3,502 | 147,224 | ||||||
EchoStar Corp., Class A* | 2,060 | 118,574 | ||||||
Extreme Networks, Inc.* | 6,592 | 51,516 | ||||||
F5 Networks, Inc.* | 1,236 | 159,605 | ||||||
Finisar Corp.* | 16,480 | 376,403 | ||||||
Harmonic, Inc.* (a) | 9,476 | 54,961 | ||||||
Harris Corp.(a) | 3,502 | 391,839 | ||||||
Infinera Corp.* | 6,592 | 65,393 | ||||||
InterDigital, Inc. | 3,502 | 314,830 |
See Accompanying Notes to the Financial Statements.
48 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Communications Equipment – (continued) | ||||||||
Juniper Networks, Inc. | 11,330 | $ | 340,693 | |||||
Lumentum Holdings, Inc.* | 412 | 17,613 | ||||||
Motorola Solutions, Inc. | 3,296 | 283,357 | ||||||
NETGEAR, Inc.* (a) | 5,356 | 252,535 | ||||||
NetScout Systems, Inc.* (a) | 29,046 | 1,093,582 | ||||||
Palo Alto Networks, Inc.* (a) | 2,060 | 223,325 | ||||||
Plantronics, Inc. | 2,060 | 112,476 | ||||||
ShoreTel, Inc.* | 10,300 | 67,465 | ||||||
Ubiquiti Networks, Inc.* | 824 | 42,452 | ||||||
ViaSat, Inc.* | 2,060 | 131,902 | ||||||
Viavi Solutions, Inc.* | 50,058 | 500,580 | ||||||
13,970,096 | ||||||||
Construction & Engineering – 0.4% | ||||||||
AECOM* | 8,652 | 295,985 | ||||||
Aegion Corp.* | 4,944 | 112,822 | ||||||
Argan, Inc. | 2,266 | 151,482 | ||||||
Chicago Bridge & Iron Co. NV | 30,900 | 929,472 | ||||||
Comfort Systems USA, Inc. | 3,914 | 143,644 | ||||||
Dycom Industries, Inc.* (a) | 8,858 | 935,936 | ||||||
EMCOR Group, Inc. | 4,326 | 284,391 | ||||||
Fluor Corp. | 7,622 | 391,161 | ||||||
Granite Construction, Inc.(a) | 2,472 | 130,299 | ||||||
Jacobs Engineering Group, Inc. | 1,030 | 56,568 | ||||||
KBR, Inc. | 4,120 | 57,886 | ||||||
MasTec, Inc.* | 13,184 | 582,074 | ||||||
MYR Group, Inc.* | 618 | 26,117 | ||||||
Primoris Services Corp. | 2,884 | 66,245 | ||||||
Tutor Perini Corp.* | 9,682 | 298,690 | ||||||
Valmont Industries, Inc. | 412 | 62,768 | ||||||
4,525,540 | ||||||||
Construction Materials – 0.2% | ||||||||
Eagle Materials, Inc. | 1,854 | 177,928 | ||||||
Headwaters, Inc.* | 10,300 | 244,728 | ||||||
Martin Marietta Materials, Inc. | 1,854 | 408,232 | ||||||
Summit Materials, Inc., Class A* (a) | 15,862 | 407,019 | ||||||
US Concrete, Inc.* (a) | 1,030 | 63,860 |
Shares | Value | |||||||
Construction Materials – (continued) | ||||||||
Vulcan Materials Co. | 3,296 | $ | 398,421 | |||||
1,700,188 | ||||||||
Consumer Finance – 1.1% | ||||||||
Ally Financial, Inc. | 23,072 | 456,826 | ||||||
American Express Co. | 31,106 | 2,465,151 | ||||||
Capital One Financial Corp. | 22,042 | 1,771,736 | ||||||
Credit Acceptance Corp.* | 1,030 | 209,347 | ||||||
Discover Financial Services | 18,540 | 1,160,419 | ||||||
Encore Capital Group, Inc.* | 9,888 | 329,765 | ||||||
Enova International, Inc.* | 8,652 | 122,858 | ||||||
EZCORP, Inc., Class A* (a) | 13,390 | 121,180 | ||||||
FirstCash, Inc. | 4,950 | 257,152 | ||||||
Green Dot Corp., Class A* | 2,884 | 98,892 | ||||||
LendingClub Corp.* | 9,682 | 56,640 | ||||||
Navient Corp.(a) | 25,750 | 391,400 | ||||||
Nelnet, Inc., Class A | 8,034 | 361,610 | ||||||
OneMain Holdings, Inc.* (a) | 206 | 4,804 | ||||||
PRA Group, Inc.* (a) | 12,772 | 411,258 | ||||||
Santander Consumer USA Holdings, Inc.* | 14,008 | 178,462 | ||||||
SLM Corp.* | 142,346 | 1,785,019 | ||||||
Synchrony Financial | 36,668 | 1,019,370 | ||||||
World Acceptance Corp.* (a) | 1,030 | 54,487 | ||||||
11,256,376 | ||||||||
Containers & Packaging – 0.5% | ||||||||
AptarGroup, Inc.(a) | 1,030 | 82,709 | ||||||
Avery Dennison Corp. | 1,854 | 154,271 | ||||||
Ball Corp. | 2,472 | 190,072 | ||||||
Bemis Co., Inc. | 4,532 | 203,623 | ||||||
Berry Global Group, Inc.* (a) | 9,682 | 484,100 | ||||||
Crown Holdings, Inc.* | 3,914 | 219,536 | ||||||
Graphic Packaging Holding Co. | 20,188 | 274,153 | ||||||
International Paper Co. | 19,570 | 1,056,193 | ||||||
Myers Industries, Inc.(a) | 412 | 6,715 | ||||||
Owens-Illinois, Inc.* (a) | 49,440 | 1,078,781 | ||||||
Packaging Corp. of America(a) | 1,648 | 162,789 | ||||||
Sealed Air Corp. | 4,532 | 199,499 | ||||||
Silgan Holdings, Inc. | 2,266 | 137,365 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 49 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Containers & Packaging – (continued) | ||||||||
Sonoco Products Co. | 1,854 | $ | 96,983 | |||||
WestRock Co. | 12,360 | 662,002 | ||||||
5,008,791 | ||||||||
Distributors – 0.1% | ||||||||
Core-Mark Holding Co., Inc.(a) | 4,944 | 173,139 | ||||||
Genuine Parts Co. | 2,472 | 227,473 | ||||||
LKQ Corp.* | 8,652 | 270,289 | ||||||
Pool Corp. | 2,678 | 320,342 | ||||||
991,243 | ||||||||
Diversified Consumer Services – 0.3% | ||||||||
Bright Horizons Family Solutions, Inc.* (a) | 3,090 | 235,211 | ||||||
Capella Education Co.(a) | 1,648 | 157,054 | ||||||
Career Education Corp.* | 15,450 | 156,818 | ||||||
Carriage Services, Inc.(a) | 3,296 | 90,146 | ||||||
DeVry Education Group, Inc.(a) | 17,304 | 654,956 | ||||||
Graham Holdings Co., Class B | 412 | 247,901 | ||||||
Grand Canyon Education, Inc.* (a) | 4,120 | 309,659 | ||||||
H&R Block, Inc.(a) | 5,562 | 137,882 | ||||||
Regis Corp.* | 8,034 | 87,651 | ||||||
Service Corp. International | 9,888 | 318,591 | ||||||
Strayer Education, Inc.(a) | 1,648 | 142,898 | ||||||
Weight Watchers International, Inc.* (a) | 9,476 | 197,859 | ||||||
2,736,626 | ||||||||
Diversified Financial Services – 1.5% | ||||||||
Berkshire Hathaway, Inc., Class B* | 87,962 | 14,532,202 | ||||||
FNFV Group* | 1,442 | 19,755 | ||||||
Leucadia National Corp. | 19,364 | 491,657 | ||||||
Voya Financial, Inc. | 14,420 | 539,020 | ||||||
15,582,634 | ||||||||
Diversified Telecommunication Services – 2.2% | ||||||||
AT&T, Inc. | 283,868 | 11,249,689 | ||||||
ATN International, Inc. | 2,060 | 142,531 |
Shares | Value | |||||||
Diversified Telecommunication Services – (continued) | ||||||||
CenturyLink, Inc. | 29,664 | $ | 761,475 | |||||
Cincinnati Bell, Inc.* (a) | 1,554 | 29,293 | ||||||
Cogent Communications Holdings, Inc. | 3,090 | 139,050 | ||||||
Consolidated Communications Holdings, Inc.(a) | 2,884 | 68,264 | ||||||
General Communication, Inc., Class A* | 4,120 | 154,253 | ||||||
IDT Corp., Class B | 2,472 | 37,550 | ||||||
Iridium Communications, Inc.* (a) | 25,544 | 270,766 | ||||||
Level 3 Communications, Inc.* | 7,828 | 475,629 | ||||||
Lumos Networks Corp.* | 1,854 | 33,205 | ||||||
ORBCOMM, Inc.* | 2,472 | 23,830 | ||||||
Verizon Communications, Inc. | 189,314 | 8,691,406 | ||||||
Vonage Holdings Corp.* | 27,604 | 185,223 | ||||||
Windstream Holdings, Inc.(a) | 71,276 | 393,444 | ||||||
22,655,608 | ||||||||
Electric Utilities – 1.8% | ||||||||
ALLETE, Inc. | 7,828 | 547,256 | ||||||
Alliant Energy Corp. | 4,120 | 161,998 | ||||||
American Electric Power Co., Inc. | 15,450 | 1,047,974 | ||||||
Duke Energy Corp. | 28,428 | 2,345,310 | ||||||
Edison International | 10,094 | 807,217 | ||||||
El Paso Electric Co. | 5,150 | 265,740 | ||||||
Entergy Corp. | 8,858 | 675,511 | ||||||
Eversource Energy | 11,742 | 697,475 | ||||||
Exelon Corp. | 40,788 | 1,412,488 | ||||||
FirstEnergy Corp. | 26,162 | 783,290 | ||||||
Great Plains Energy, Inc. | 2,060 | 60,955 | ||||||
Hawaiian Electric Industries, Inc. | 23,487 | 787,284 | ||||||
IDACORP, Inc.(a) | 3,296 | 278,578 | ||||||
MGE Energy, Inc.(a) | 2,266 | 145,704 | ||||||
NextEra Energy, Inc. | 10,300 | 1,375,668 | ||||||
OGE Energy Corp. | 2,472 | 85,976 | ||||||
Otter Tail Corp.(a) | 1,442 | 56,959 | ||||||
PG&E Corp. | 21,424 | 1,436,479 | ||||||
Pinnacle West Capital Corp. | 2,884 | 245,400 |
See Accompanying Notes to the Financial Statements.
50 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
PNM Resources, Inc.(a) | 8,240 | $ | 306,940 | |||||
Portland General Electric Co.(a) | 12,154 | 551,062 | ||||||
PPL Corp. | 29,458 | 1,122,644 | ||||||
Southern Co. (The) | 40,994 | 2,041,501 | ||||||
Westar Energy, Inc. | 1,648 | 85,746 | ||||||
Xcel Energy, Inc. | 23,072 | 1,039,394 | ||||||
18,364,549 | ||||||||
Electrical Equipment – 0.6% | ||||||||
Acuity Brands, Inc.(a) | 1,648 | 290,213 | ||||||
AMETEK, Inc.(a) | 3,502 | 200,314 | ||||||
AZZ, Inc.(a) | 1,648 | 97,315 | ||||||
Eaton Corp. plc | 22,660 | 1,714,002 | ||||||
Emerson Electric Co. | 19,982 | 1,204,515 | ||||||
Encore Wire Corp. | 1,236 | 54,631 | ||||||
EnerSys | 3,502 | 291,051 | ||||||
Generac Holdings, Inc.* (a) | 6,798 | 239,086 | ||||||
General Cable Corp.(a) | 4,738 | 85,284 | ||||||
Hubbell, Inc. | 618 | 69,914 | ||||||
Regal Beloit Corp.(a) | 14,832 | 1,169,503 | ||||||
Rockwell Automation, Inc. | 2,060 | 324,141 | ||||||
Sensata Technologies Holding NV* (a) | 1,648 | 67,865 | ||||||
Sunrun, Inc.* (a) | 206 | 1,090 | ||||||
5,808,924 | ||||||||
Electronic Equipment, Instruments & Components – 1.6% | ||||||||
Amphenol Corp., Class A | 7,622 | 551,147 | ||||||
Anixter International, Inc.* | 6,180 | 503,979 | ||||||
Arrow Electronics, Inc.* | 2,060 | 145,230 | ||||||
Avnet, Inc. | 2,678 | 103,612 | ||||||
AVX Corp. | 7,210 | 121,921 | ||||||
Badger Meter, Inc.(a) | 2,472 | 98,262 | ||||||
Belden, Inc. | 11,948 | 832,776 | ||||||
Benchmark Electronics, Inc.* | 9,682 | 306,919 | ||||||
CDW Corp. | 2,884 | 170,416 | ||||||
Cognex Corp. | 5,150 | 439,501 | ||||||
Coherent, Inc.* (a) | 1,236 | 266,482 | ||||||
Corning, Inc. | 55,208 | 1,592,751 | ||||||
CTS Corp.(a) | 6,386 | 141,131 | ||||||
Dolby Laboratories, Inc., Class A | 824 | 43,450 |
Shares | Value | |||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
ePlus, Inc.* (a) | 4,120 | $ | 293,550 | |||||
Fabrinet* (a) | 5,356 | 185,693 | ||||||
Fitbit, Inc., Class A* (a) | 44,702 | 255,695 | ||||||
Flex Ltd.* | 8,446 | 130,575 | ||||||
FLIR Systems, Inc. | 3,296 | 121,062 | ||||||
II-VI, Inc.* | 1,030 | 34,144 | ||||||
Insight Enterprises, Inc.* | 11,536 | 485,666 | ||||||
InvenSense, Inc.* | 21,836 | 280,811 | ||||||
IPG Photonics Corp.* (a) | 2,884 | 364,307 | ||||||
Jabil Circuit, Inc. | 27,604 | 801,068 | ||||||
Keysight Technologies, Inc.* | 1,442 | 53,974 | ||||||
Knowles Corp.* (a) | 22,866 | 405,414 | ||||||
Littelfuse, Inc. | 1,854 | 285,794 | ||||||
Mesa Laboratories, Inc. | 206 | 28,803 | ||||||
Methode Electronics, Inc.(a) | 3,090 | 137,659 | ||||||
National Instruments Corp.(a) | 206 | 7,191 | ||||||
Novanta, Inc.* | 3,090 | 86,674 | ||||||
PC Connection, Inc.(a) | 3,708 | 106,568 | ||||||
Plexus Corp.* | 6,798 | 353,428 | ||||||
Rogers Corp.* | 1,236 | 127,234 | ||||||
Sanmina Corp.* | 24,308 | 905,473 | ||||||
ScanSource, Inc.* | 5,356 | 211,562 | ||||||
SYNNEX Corp.(a) | 5,150 | 558,414 | ||||||
TE Connectivity Ltd. | 6,798 | 525,961 | ||||||
Tech Data Corp.* (a) | 11,742 | 1,123,122 | ||||||
Trimble, Inc.* (a) | 4,944 | 175,166 | ||||||
TTM Technologies, Inc.* (a) | 20,600 | 344,638 | ||||||
Universal Display Corp. | 1,236 | 110,437 | ||||||
VeriFone Systems, Inc.* (a) | 30,488 | 565,247 | ||||||
Vishay Intertechnology, Inc.(a) | 52,736 | 862,234 | ||||||
Zebra Technologies Corp., Class A* | 16,480 | 1,553,570 | ||||||
16,798,711 | ||||||||
Energy Equipment & Services – 1.0% | ||||||||
Archrock, Inc. | 35,432 | 418,098 | ||||||
Atwood Oceanics, Inc.* (a) | 21,630 | 169,363 | ||||||
Baker Hughes, Inc. | 9,270 | 550,360 | ||||||
Bristow Group, Inc.(a) | 14,008 | 187,287 | ||||||
Core Laboratories NV(a) | 1,030 | 114,145 | ||||||
Diamond Offshore Drilling, Inc.* (a) | 23,278 | 335,669 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 51 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Energy Equipment & Services – (continued) | ||||||||
Ensco plc, Class A(a) | 47,586 | $ | 375,453 | |||||
Exterran Corp.* | 14,832 | 405,952 | ||||||
Fairmount Santrol Holdings, Inc.* (a) | 21,012 | 108,422 | ||||||
Halliburton Co. | 17,098 | 784,456 | ||||||
Helix Energy Solutions Group, Inc.* | 29,046 | 177,761 | ||||||
Helmerich & Payne, Inc.(a) | 6,798 | 412,231 | ||||||
Matrix Service Co.* | 2,678 | 31,466 | ||||||
McDermott International, Inc.* | 63,860 | 417,644 | ||||||
Nabors Industries Ltd.(a) | 92,288 | 954,258 | ||||||
National Oilwell Varco, Inc.(a) | 17,098 | 597,917 | ||||||
Natural Gas Services Group, Inc.* (a) | 824 | 22,578 | ||||||
Newpark Resources, Inc.* (a) | 4,738 | 36,246 | ||||||
Noble Corp. plc* (a) | 104,030 | 499,344 | ||||||
Patterson-UTI Energy, Inc. | 17,922 | 387,922 | ||||||
PHI, Inc. (Non-Voting)* | 206 | 2,416 | ||||||
RPC, Inc.(a) | 5,768 | 104,805 | ||||||
Schlumberger Ltd. | 32,548 | 2,362,659 | ||||||
SEACOR Holdings, Inc.* | 3,296 | 216,415 | ||||||
Superior Energy Services, Inc.* (a) | 28,016 | 338,433 | ||||||
TETRA Technologies, Inc.* | 33,784 | 112,501 | ||||||
Unit Corp.* | 20,806 | 447,121 | ||||||
US Silica Holdings, Inc. | 618 | 25,647 | ||||||
Weatherford International plc* (a) | 44,496 | 256,742 | ||||||
10,853,311 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.8% | ||||||||
Acadia Realty Trust | 5,974 | 173,724 | ||||||
Agree Realty Corp.(a) | 1,030 | 49,934 | ||||||
Alexander’s, Inc. | 206 | 89,571 | ||||||
Alexandria Real Estate Equities, Inc.(a) | 2,678 | 301,302 | ||||||
American Assets Trust, Inc.(a) | 2,678 | 114,699 | ||||||
American Campus Communities, Inc. | 3,090 | 146,435 |
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
American Homes 4 Rent, | 206 | $ | 4,748 | |||||
American Tower Corp. | 11,124 | 1,400,957 | ||||||
Apartment Investment & Management Co., Class A | 4,120 | 180,209 | ||||||
Ashford Hospitality Trust, Inc. | 21,218 | 132,613 | ||||||
AvalonBay Communities, Inc. | 3,914 | 743,034 | ||||||
Boston Properties, Inc. | 3,914 | 495,512 | ||||||
Brandywine Realty Trust | 12,566 | 213,245 | ||||||
Brixmor Property Group, Inc. | 10,094 | 199,357 | ||||||
Camden Property Trust(a) | 2,266 | 186,560 | ||||||
Care Capital Properties, | 3,502 | 94,099 | ||||||
CBL & Associates Properties, | 65,508 | 605,949 | ||||||
Cedar Realty Trust, Inc.(a) | 5,768 | 31,032 | ||||||
Chatham Lodging Trust | 1,030 | 19,941 | ||||||
Chesapeake Lodging Trust(a) | 9,270 | 216,084 | ||||||
Colony NorthStar, Inc., Class A | 209,502 | 2,738,191 | ||||||
Colony Starwood Homes(a) | 7,622 | 263,493 | ||||||
CoreCivic, Inc. | 40,788 | 1,405,147 | ||||||
CorEnergy Infrastructure Trust, | 839 | 30,607 | ||||||
CoreSite Realty Corp. | 2,472 | 241,885 | ||||||
Corporate Office Properties | 8,652 | 283,266 | ||||||
Cousins Properties, Inc. | 8,652 | 73,455 | ||||||
Crown Castle International Corp. | 9,064 | 857,454 | ||||||
CubeSmart | 9,476 | 240,122 | ||||||
CyrusOne, Inc. | 2,678 | 146,326 | ||||||
DCT Industrial Trust, Inc. | 5,356 | 270,799 | ||||||
DDR Corp. | 29,458 | 318,441 | ||||||
DiamondRock Hospitality Co. | 49,646 | 546,602 | ||||||
Digital Realty Trust, Inc.(a) | 2,884 | 331,199 | ||||||
Douglas Emmett, Inc. | 2,266 | 85,360 | ||||||
Duke Realty Corp.(a) | 10,506 | 291,331 | ||||||
DuPont Fabros Technology, Inc.(a) | 5,768 | 297,340 | ||||||
EastGroup Properties, Inc.(a) | 1,030 | 80,598 | ||||||
Education Realty Trust, Inc.(a) | 3,914 | 151,746 | ||||||
Empire State Realty Trust, Inc., Class A(a) | 6,592 | 137,114 |
See Accompanying Notes to the Financial Statements.
52 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
EPR Properties | 4,532 | $ | 329,522 | |||||
Equinix, Inc. | 1,442 | 602,323 | ||||||
Equity Commonwealth* | 27,810 | 889,642 | ||||||
Equity LifeStyle Properties, Inc. | 1,442 | 116,672 | ||||||
Equity Residential | 9,888 | 638,567 | ||||||
Essex Property Trust, Inc.(a) | 1,854 | 453,247 | ||||||
Extra Space Storage, Inc. | 3,708 | 280,065 | ||||||
Federal Realty Investment Trust | 2,060 | 269,633 | ||||||
FelCor Lodging Trust, Inc. | 8,034 | 62,263 | ||||||
First Industrial Realty Trust, Inc. | 8,858 | 249,264 | ||||||
First Potomac Realty Trust | 2,060 | 22,660 | ||||||
Forest City Realty Trust, Inc., Class A | 6,592 | 148,979 | ||||||
Gaming and Leisure Properties, Inc. | 3,708 | 129,038 | ||||||
GEO Group, Inc. (The)(a) | 35,844 | 1,194,322 | ||||||
Getty Realty Corp.(a) | 824 | 21,094 | ||||||
GGP, Inc. | 21,836 | 471,876 | ||||||
Global Net Lease, Inc.(a) | 9,682 | 228,786 | ||||||
Government Properties Income | 10,300 | 219,596 | ||||||
Gramercy Property Trust | 2,396 | 66,585 | ||||||
HCP, Inc. | 16,892 | 529,564 | ||||||
Healthcare Realty Trust, Inc.(a) | 5,356 | 175,677 | ||||||
Healthcare Trust of America, Inc., Class A | 4,738 | 151,095 | ||||||
Hersha Hospitality Trust | 12,154 | 224,120 | ||||||
Highwoods Properties, Inc. | 5,150 | 262,032 | ||||||
Hospitality Properties Trust | 618 | 19,671 | ||||||
Host Hotels & Resorts, Inc. | 23,896 | 428,933 | ||||||
Hudson Pacific Properties, Inc.(a) | 5,356 | 184,032 | ||||||
InfraREIT, Inc.* | 5,562 | 106,234 | ||||||
Iron Mountain, Inc. | 1,442 | 50,124 | ||||||
iStar, Inc.* | 28,222 | 345,155 | ||||||
Kilroy Realty Corp. | 1,442 | 101,704 | ||||||
Kimco Realty Corp. | 20,806 | 422,154 | ||||||
Kite Realty Group Trust(a) | 7,622 | 155,184 |
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Lamar Advertising Co., Class A(a) | 1,648 | $ | 118,771 | |||||
LaSalle Hotel Properties | 33,372 | 953,104 | ||||||
Lexington Realty Trust | 1,854 | 18,855 | ||||||
Liberty Property Trust | 412 | 16,715 | ||||||
Life Storage, Inc. | 2,678 | 209,928 | ||||||
LTC Properties, Inc. | 2,884 | 137,971 | ||||||
Macerich Co. (The)(a) | 4,326 | 270,072 | ||||||
Medical Properties Trust, Inc.(a) | 53,766 | 702,722 | ||||||
Mid-America Apartment Communities, Inc. | 4,532 | 449,620 | ||||||
National Health Investors, Inc.(a) | 2,472 | 180,876 | ||||||
National Retail Properties, Inc. | 3,296 | 139,157 | ||||||
New Senior Investment Group, Inc.(a) | 25,956 | 270,462 | ||||||
NorthStar Realty Europe Corp. | 10,712 | 124,581 | ||||||
Omega Healthcare Investors, Inc.(a) | 12,360 | 407,880 | ||||||
Pebblebrook Hotel Trust(a) | 2,266 | 67,436 | ||||||
Pennsylvania REIT | 2,060 | 28,531 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 5,562 | 121,530 | ||||||
Prologis, Inc. | 12,772 | 694,925 | ||||||
PS Business Parks, Inc. | 824 | 100,149 | ||||||
Public Storage | 3,914 | 819,513 | ||||||
QTS Realty Trust, Inc., Class A | 1,030 | 55,043 | ||||||
Ramco-Gershenson Properties Trust | 2,472 | 32,952 | ||||||
Realty Income Corp.(a) | 6,798 | 396,671 | ||||||
Regency Centers Corp. | 5,592 | 353,303 | ||||||
Retail Opportunity Investments | 4,944 | 101,846 | ||||||
Retail Properties of America, Inc., Class A | 1,854 | 24,732 | ||||||
RLJ Lodging Trust | 32,754 | 703,883 | ||||||
Ryman Hospitality Properties, Inc.(a) | 5,150 | 328,467 | ||||||
Sabra Health Care REIT, Inc.(a) | 9,682 | 263,254 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 53 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Saul Centers, Inc. | 618 | $ | 37,111 | |||||
SBA Communications Corp.* | 2,060 | 260,569 | ||||||
Select Income REIT | 10,300 | 258,118 | ||||||
Senior Housing Properties Trust | 10,094 | 217,223 | ||||||
Simon Property Group, Inc. | 9,064 | 1,497,917 | ||||||
SL Green Realty Corp.(a) | 1,648 | 172,925 | ||||||
Spirit Realty Capital, Inc. | 21,836 | 205,695 | ||||||
STAG Industrial, Inc. | 3,296 | 86,883 | ||||||
STORE Capital Corp. | 3,708 | 88,955 | ||||||
Summit Hotel Properties, Inc. | 12,360 | 204,311 | ||||||
Sun Communities, Inc. | 3,708 | 310,026 | ||||||
Sunstone Hotel Investors, Inc. | 7,210 | 107,357 | ||||||
Tanger Factory Outlet Centers, Inc. | 1,854 | 57,826 | ||||||
Terreno Realty Corp.(a) | 206 | 6,361 | ||||||
UDR, Inc. | 7,004 | 261,529 | ||||||
Universal Health Realty Income Trust(a) | 2,472 | 172,422 | ||||||
Urstadt Biddle Properties, Inc., Class A | 206 | 4,050 | ||||||
Ventas, Inc. | 10,300 | 659,303 | ||||||
VEREIT, Inc. | 54,384 | 455,194 | ||||||
Vornado Realty Trust | 3,502 | 337,032 | ||||||
Washington Prime Group, Inc. | 206 | 1,813 | ||||||
Washington REIT | 3,502 | 110,908 | ||||||
Weingarten Realty Investors | 1,236 | 40,504 | ||||||
Welltower, Inc. | 10,506 | 750,549 | ||||||
Weyerhaeuser Co. | 14,626 | 495,383 | ||||||
Xenia Hotels & Resorts, Inc. | 20,600 | 359,676 | ||||||
38,991,883 | ||||||||
Food & Staples Retailing – 1.6% | ||||||||
Andersons, Inc. | 8,240 | 307,764 | ||||||
Casey’s General Stores, Inc.(a) | 2,060 | 230,864 | ||||||
Costco Wholesale Corp. | 10,712 | 1,901,594 | ||||||
CVS Health Corp. | 47,586 | 3,922,990 | ||||||
Ingles Markets, Inc., Class A(a) | 2,472 | 115,443 | ||||||
Kroger Co. (The) | 25,544 | 757,380 |
Shares | Value | |||||||
Food & Staples Retailing – (continued) | ||||||||
PriceSmart, Inc. | 618 | $ | 53,735 | |||||
Rite Aid Corp.* | 41,612 | 166,448 | ||||||
SpartanNash Co.(a) | 8,858 | 325,974 | ||||||
SUPERVALU, Inc.* | 110,622 | 453,550 | ||||||
Sysco Corp. | 12,772 | 675,256 | ||||||
United Natural Foods, | 14,832 | 615,973 | ||||||
Walgreens Boots Alliance, Inc. | 21,424 | 1,854,033 | ||||||
Wal-Mart Stores, Inc. | 70,246 | 5,281,094 | ||||||
Weis Markets, Inc. | 206 | 11,909 | ||||||
Whole Foods Market, Inc. | 206 | 7,492 | ||||||
16,681,499 | ||||||||
Food Products – 1.5% | ||||||||
Archer-Daniels-Midland Co. | 23,690 | 1,083,817 | ||||||
B&G Foods, Inc.(a) | 1,236 | 51,912 | ||||||
Blue Buffalo Pet Products, Inc.* | 2,884 | 71,091 | ||||||
Bunge Ltd. | 4,944 | 390,724 | ||||||
Calavo Growers, Inc. | 1,236 | 81,082 | ||||||
Cal-Maine Foods, Inc.* (a) | 7,210 | 272,178 | ||||||
Campbell Soup Co.(a) | 3,914 | 225,212 | ||||||
Conagra Brands, Inc. | 12,772 | 495,298 | ||||||
Darling Ingredients, Inc.* | 50,470 | 763,611 | ||||||
Dean Foods Co. | 26,162 | 516,438 | ||||||
Flowers Foods, Inc. | 59,946 | 1,175,541 | ||||||
Fresh Del Monte Produce, Inc.(a) | 9,682 | 593,507 | ||||||
Freshpet, Inc.* (a) | 824 | 9,682 | ||||||
General Mills, Inc. | 12,978 | 746,365 | ||||||
Hain Celestial Group, Inc. | 5,150 | 190,498 | ||||||
Hershey Co. (The)(a) | 3,708 | 401,206 | ||||||
Hormel Foods Corp.(a) | 5,974 | 209,568 | ||||||
Ingredion, Inc. | 1,442 | 178,548 | ||||||
J&J Snack Foods Corp.(a) | 1,442 | 194,064 | ||||||
JM Smucker Co. (The) | 1,648 | 208,835 | ||||||
John B Sanfilippo & Son, Inc.(a) | 1,236 | 90,846 | ||||||
Kellogg Co.(a) | 5,356 | 380,276 | ||||||
Kraft Heinz Co. (The) | 15,038 | 1,359,285 | ||||||
Lancaster Colony Corp. | 1,442 | 181,548 |
See Accompanying Notes to the Financial Statements.
54 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Landec Corp.* | 1,236 | $ | 16,995 | |||||
McCormick & Co., Inc. (Non-Voting)(a) | 2,678 | 267,532 | ||||||
Mead Johnson Nutrition Co. | 4,738 | 420,355 | ||||||
Mondelez International, Inc., Class A | 38,728 | 1,743,922 | ||||||
Omega Protein Corp. | 4,532 | 91,320 | ||||||
Pilgrim’s Pride Corp. | 4,738 | 122,998 | ||||||
Pinnacle Foods, Inc. | 5,150 | 299,472 | ||||||
Post Holdings, Inc.* | 4,326 | 364,206 | ||||||
Sanderson Farms, Inc.(a) | 5,356 | 620,118 | ||||||
Seaboard Corp. | 24 | 101,616 | ||||||
Snyder’s-Lance, Inc.(a) | 6,180 | 217,907 | ||||||
Tootsie Roll Industries, Inc.(a) | 1,908 | 71,264 | ||||||
TreeHouse Foods, Inc.* | 2,060 | 180,456 | ||||||
Tyson Foods, Inc., Class A | 11,948 | 767,778 | ||||||
15,157,071 | ||||||||
Gas Utilities – 0.2% | ||||||||
Atmos Energy Corp. | 1,442 | 116,831 | ||||||
Chesapeake Utilities Corp.(a) | 2,884 | 211,397 | ||||||
New Jersey Resources Corp.(a) | 7,828 | 315,860 | ||||||
Northwest Natural Gas Co.(a) | 206 | 12,278 | ||||||
ONE Gas, Inc. | 3,914 | 269,401 | ||||||
South Jersey Industries, Inc.(a) | 8,034 | 301,436 | ||||||
Southwest Gas Holdings, Inc. | 3,502 | 293,327 | ||||||
Spire, Inc.(a) | 3,708 | 254,183 | ||||||
UGI Corp. | 3,708 | 185,993 | ||||||
WGL Holdings, Inc. | 4,326 | 356,722 | ||||||
2,317,428 | ||||||||
Health Care Equipment & Supplies – 1.7% | ||||||||
Abaxis, Inc. | 1,030 | 46,381 | ||||||
Abbott Laboratories | 34,196 | 1,492,313 | ||||||
ABIOMED, Inc.* | 2,678 | 348,997 | ||||||
Accuray, Inc.* | 618 | 2,812 | ||||||
Alere, Inc.* | 5,768 | 283,613 | ||||||
Align Technology, Inc.* | 4,120 | 554,634 | ||||||
Analogic Corp. | 412 | 29,602 |
Shares | Value | |||||||
Health Care Equipment & Supplies – (continued) | ||||||||
AngioDynamics, Inc.* | 1,442 | $ | 22,380 | |||||
Anika Therapeutics, Inc.* (a) | 1,030 | 47,514 | ||||||
AtriCure, Inc.* | 1,030 | 21,115 | ||||||
Baxter International, Inc. | 9,064 | 504,683 | ||||||
Becton Dickinson and Co. | 4,120 | 770,316 | ||||||
Boston Scientific Corp.* | 28,016 | 739,062 | ||||||
Cantel Medical Corp. | 3,090 | 229,927 | ||||||
Cardiovascular Systems, Inc.* | 824 | 24,613 | ||||||
Cerus Corp.* (a) | 2,678 | 11,649 | ||||||
CONMED Corp. | 4,944 | 243,047 | ||||||
Cooper Cos., Inc. (The) | 824 | 165,072 | ||||||
CR Bard, Inc. | 1,442 | 443,386 | ||||||
Danaher Corp. | 13,390 | 1,115,789 | ||||||
DENTSPLY SIRONA, Inc. | 4,532 | 286,604 | ||||||
DexCom, Inc.* (a) | 3,708 | 289,076 | ||||||
Edwards Lifesciences Corp.* | 5,356 | 587,393 | ||||||
Globus Medical, Inc., Class A* | 5,356 | 162,447 | ||||||
Halyard Health, Inc.* | 4,120 | 162,740 | ||||||
Hill-Rom Holdings, Inc. | 4,120 | 311,637 | ||||||
Hologic, Inc.* | 7,416 | 334,832 | ||||||
ICU Medical, Inc.* (a) | 1,030 | 158,414 | ||||||
IDEXX Laboratories, Inc.* | 2,472 | 414,629 | ||||||
Insulet Corp.* (a) | 2,060 | 89,425 | ||||||
Integer Holdings Corp.* (a) | 10,094 | 370,954 | ||||||
Integra LifeSciences Holdings Corp.* | 5,356 | 246,215 | ||||||
Intuitive Surgical, Inc.* | 824 | 688,757 | ||||||
Lantheus Holdings, Inc.* | 5,150 | 66,950 | ||||||
Masimo Corp.* | 4,532 | 465,618 | ||||||
Medtronic plc | 32,136 | 2,670,180 | ||||||
Merit Medical Systems, Inc.* | 4,326 | 145,786 | ||||||
Natus Medical, Inc.* (a) | 2,678 | 93,730 | ||||||
Neogen Corp.* (a) | 2,678 | 166,920 | ||||||
NuVasive, Inc.* | 3,708 | 268,867 | ||||||
NxStage Medical, Inc.* | 4,120 | 123,147 | ||||||
OraSure Technologies, Inc.* (a) | 824 | 10,803 | ||||||
Orthofix International NV* | 4,532 | 179,241 | ||||||
Quidel Corp.* | 206 | 4,979 | ||||||
ResMed, Inc.(a) | 2,678 | 182,077 | ||||||
Spectranetics Corp. (The)* | 2,060 | 58,916 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 55 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Stryker Corp. | 6,592 | $ | 898,951 | |||||
Surmodics, Inc.* | 412 | 9,414 | ||||||
Teleflex, Inc. | 2,266 | 468,813 | ||||||
Varian Medical Systems, Inc.* (a) | 1,442 | 130,847 | ||||||
West Pharmaceutical Services, Inc. | 4,532 | 417,080 | ||||||
Wright Medical Group NV* (a) | 2,266 | 68,864 | ||||||
Zimmer Biomet Holdings, Inc. | 3,708 | 443,662 | ||||||
18,074,873 | ||||||||
Health Care Providers & Services – 2.9% | ||||||||
AAC Holdings, Inc.* (a) | 1,236 | 8,850 | ||||||
Acadia Healthcare Co., Inc.* (a) | 28,428 | 1,238,892 | ||||||
Aceto Corp.(a) | 4,120 | 65,302 | ||||||
Aetna, Inc. | 15,656 | 2,114,656 | ||||||
Almost Family, Inc.* (a) | 1,854 | 92,051 | ||||||
Amedisys, Inc.* (a) | 4,532 | 245,635 | ||||||
AmerisourceBergen Corp. | 7,622 | 625,385 | ||||||
AMN Healthcare Services, Inc.* (a) | 12,772 | 521,736 | ||||||
Anthem, Inc. | 11,330 | 2,015,494 | ||||||
BioScrip, Inc.* (a) | 36,256 | 55,109 | ||||||
BioTelemetry, Inc.* (a) | 206 | 6,777 | ||||||
Brookdale Senior Living, Inc.* (a) | 71,276 | 925,875 | ||||||
Capital Senior Living Corp.* (a) | 824 | 11,511 | ||||||
Cardinal Health, Inc. | 14,626 | 1,061,701 | ||||||
Centene Corp.* | 8,858 | 659,035 | ||||||
Chemed Corp.(a) | 1,648 | 331,874 | ||||||
Cigna Corp. | 6,180 | 966,367 | ||||||
Civitas Solutions, Inc.* | 824 | 14,667 | ||||||
Community Health Systems, Inc.* | 14,626 | 125,930 | ||||||
CorVel Corp.* (a) | 618 | 27,501 | ||||||
DaVita, Inc.* | 6,798 | 469,130 | ||||||
Ensign Group, Inc. (The)(a) | 10,506 | 188,583 | ||||||
Envision Healthcare Corp.* (a) | 41,406 | 2,319,978 | ||||||
Express Scripts Holding Co.* | 29,046 | 1,781,682 |
Shares | Value | |||||||
Health Care Providers & Services – (continued) | ||||||||
HCA Holdings, Inc.* | 12,772 | $ | 1,075,530 | |||||
HealthSouth Corp.(a) | 5,974 | 280,181 | ||||||
Henry Schein, Inc.* | 1,854 | 322,225 | ||||||
Humana, Inc. | 3,502 | 777,374 | ||||||
Kindred Healthcare, Inc.(a) | 11,124 | 106,790 | ||||||
Laboratory Corp. of America Holdings* | 2,884 | 404,193 | ||||||
LHC Group, Inc.* | 2,266 | 122,591 | ||||||
LifePoint Health, Inc.* | 14,008 | 870,597 | ||||||
Magellan Health, Inc.* | 3,708 | 255,110 | ||||||
McKesson Corp. | 9,682 | 1,338,924 | ||||||
MEDNAX, Inc.* | 3,708 | 223,815 | ||||||
Molina Healthcare, Inc.* | 13,802 | 687,202 | ||||||
Owens & Minor, Inc.(a) | 12,360 | 428,274 | ||||||
Patterson Cos., Inc.(a) | 2,472 | 109,979 | ||||||
PharMerica Corp.* | 6,592 | 155,571 | ||||||
Providence Service Corp. (The)* | 2,266 | 99,704 | ||||||
Quest Diagnostics, Inc. | 4,326 | 456,436 | ||||||
Select Medical Holdings Corp.* (a) | 33,372 | 458,865 | ||||||
Surgery Partners, Inc.* (a) | 2,060 | 35,432 | ||||||
Tenet Healthcare Corp.* (a) | 30,076 | 471,291 | ||||||
Tivity Health, Inc.* (a) | 2,472 | 83,059 | ||||||
Triple-S Management Corp., Class B* | 1,030 | 18,643 | ||||||
UnitedHealth Group, Inc. | 25,233 | 4,412,747 | ||||||
Universal Health Services, Inc., Class B | 2,060 | 248,766 | ||||||
US Physical Therapy, Inc. | 1,236 | 81,082 | ||||||
VCA, Inc.* | 4,738 | 433,859 | ||||||
WellCare Health Plans, Inc.* | 3,708 | 568,844 | ||||||
30,400,805 | ||||||||
Health Care Technology – 0.1% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 1,648 | 19,727 | ||||||
athenahealth, Inc.* (a) | 1,030 | 100,950 | ||||||
Cerner Corp.* (a) | 3,090 | 200,078 | ||||||
HealthStream, Inc.* (a) | 412 | 11,450 | ||||||
Medidata Solutions, Inc.* (a) | 3,296 | 215,657 | ||||||
Omnicell, Inc.* (a) | 3,296 | 136,454 | ||||||
Vocera Communications, Inc.* | 3,914 | 99,259 | ||||||
783,575 |
See Accompanying Notes to the Financial Statements.
56 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – 1.9% | ||||||||
Aramark | 2,060 | $ | 75,231 | |||||
Belmond Ltd., Class A* | 2,060 | 25,544 | ||||||
BJ’s Restaurants, Inc.* (a) | 1,854 | 83,615 | ||||||
Bloomin’ Brands, Inc. | 33,990 | 737,243 | ||||||
Bob Evans Farms, Inc. | 1,442 | 96,239 | ||||||
Boyd Gaming Corp.* | 23,690 | 537,289 | ||||||
Brinker International, Inc.(a) | 5,150 | 227,579 | ||||||
Buffalo Wild Wings, Inc.* | 1,442 | 227,187 | ||||||
Caesars Entertainment Corp.* (a) | 15,656 | 173,782 | ||||||
Carnival Corp. | 22,248 | 1,374,259 | ||||||
Cheesecake Factory, Inc. (The) | 3,296 | 211,471 | ||||||
Chipotle Mexican Grill, Inc.* (a) | 824 | 390,963 | ||||||
Choice Hotels International, Inc. | 1,854 | 116,246 | ||||||
Churchill Downs, Inc. | 1,030 | 171,804 | ||||||
Cracker Barrel Old Country Store, Inc.(a) | 1,648 | 263,993 | ||||||
Darden Restaurants, Inc.(a) | 3,708 | 315,885 | ||||||
Denny’s Corp.* | 11,742 | 149,123 | ||||||
DineEquity, Inc. | 6,592 | 372,712 | ||||||
Domino’s Pizza, Inc.(a) | 2,678 | 485,762 | ||||||
Dunkin’ Brands Group, Inc. | 1,854 | 103,564 | ||||||
Hilton Worldwide Holdings, Inc. | 3,633 | 214,238 | ||||||
Hyatt Hotels Corp., Class A* | 2,884 | 160,062 | ||||||
ILG, Inc.(a) | 30,900 | 744,999 | ||||||
International Speedway Corp., Class A | 1,648 | 61,141 | ||||||
Isle of Capri Casinos, Inc.* | 3,280 | 75,637 | ||||||
Jack in the Box, Inc.(a) | 2,472 | 252,070 | ||||||
Las Vegas Sands Corp. | 7,210 | 425,318 | ||||||
Marcus Corp. (The) | 3,914 | 132,293 | ||||||
Marriott International, Inc., Class A | 8,314 | 785,008 | ||||||
Marriott Vacations Worldwide Corp.(a) | 5,562 | 612,821 | ||||||
McDonald’s Corp. | 20,806 | 2,911,384 | ||||||
MGM Resorts International | 10,300 | 316,313 |
Shares | Value | |||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Norwegian Cruise Line Holdings Ltd.* (a) | 6,386 | $ | 344,397 | |||||
Panera Bread Co., Class A* (a) | 412 | 128,824 | ||||||
Papa John’s International, Inc. | 3,296 | 260,582 | ||||||
Penn National Gaming, Inc.* | 22,248 | 411,143 | ||||||
Pinnacle Entertainment, Inc.* | 14,832 | 305,094 | ||||||
Red Robin Gourmet Burgers, Inc.* | 2,884 | 169,435 | ||||||
Red Rock Resorts, Inc., Class A | 4,738 | 110,774 | ||||||
Royal Caribbean Cruises Ltd. | 7,004 | 746,626 | ||||||
Ruth’s Hospitality Group, Inc. | 2,884 | 57,392 | ||||||
Scientific Games Corp., Class A* | 10,712 | 254,410 | ||||||
Six Flags Entertainment Corp.(a) | 3,090 | 193,465 | ||||||
Sonic Corp.(a) | 4,738 | 127,357 | ||||||
Starbucks Corp. | 35,844 | 2,152,791 | ||||||
Texas Roadhouse, Inc. | 3,914 | 183,488 | ||||||
Vail Resorts, Inc. | 2,266 | 447,898 | ||||||
Wendy’s Co. (The)(a) | 18,952 | 279,353 | ||||||
Wyndham Worldwide Corp.(a) | 2,060 | 196,339 | ||||||
Wynn Resorts Ltd. | 1,648 | 202,720 | ||||||
Yum Brands, Inc. | 9,270 | 609,503 | ||||||
Yum China Holdings, Inc.* | 3,708 | 126,517 | ||||||
20,138,883 | ||||||||
Household Durables – 1.0% | ||||||||
Beazer Homes USA, Inc.* | 29,664 | 368,130 | ||||||
CalAtlantic Group, Inc.(a) | 7,004 | 253,685 | ||||||
Cavco Industries, Inc.* | 618 | 73,387 | ||||||
DR Horton, Inc. | 18,128 | 596,230 | ||||||
Ethan Allen Interiors, Inc. | 618 | 18,416 | ||||||
Garmin Ltd. | 824 | 41,892 | ||||||
Helen of Troy Ltd.* | 8,858 | 832,652 | ||||||
iRobot Corp.* (a) | 1,442 | 114,985 | ||||||
KB Home(a) | 38,934 | 802,040 | ||||||
La-Z-Boy, Inc. | 10,094 | 281,623 | ||||||
Leggett & Platt, Inc. | 2,266 | 119,056 | ||||||
Lennar Corp., Class A | 17,922 | 905,061 | ||||||
LGI Homes, Inc.* (a) | 4,532 | 144,254 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 57 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Household Durables – (continued) | ||||||||
Libbey, Inc. | 412 | $ | 4,326 | |||||
M/I Homes, Inc.* | 2,884 | 78,329 | ||||||
MDC Holdings, Inc.(a) | 7,559 | 234,405 | ||||||
Meritage Homes Corp.* (a) | 9,476 | 369,090 | ||||||
Mohawk Industries, Inc.* | 1,854 | 435,301 | ||||||
NACCO Industries, Inc., Class A(a) | 412 | 34,876 | ||||||
Newell Brands, Inc. | 11,742 | 560,563 | ||||||
NVR, Inc.* | 206 | 434,917 | ||||||
PulteGroup, Inc. | 15,656 | 354,922 | ||||||
Taylor Morrison Home Corp., Class A* | 16,686 | 385,447 | ||||||
Tempur Sealy International, Inc.* | 3,708 | 174,091 | ||||||
Toll Brothers, Inc.(a) | 4,738 | 170,521 | ||||||
TRI Pointe Group, Inc.* (a) | 42,024 | 523,199 | ||||||
Tupperware Brands Corp. | 14,832 | 1,065,086 | ||||||
Universal Electronics, Inc.* (a) | 2,678 | 185,585 | ||||||
Whirlpool Corp. | 3,914 | 726,751 | ||||||
William Lyon Homes, Class A* (a) | 10,094 | 222,068 | ||||||
10,510,888 | ||||||||
Household Products – 1.0% | ||||||||
Central Garden & Pet Co., Class A* | 9,888 | 348,354 | ||||||
Church & Dwight Co., Inc. | 6,180 | 306,095 | ||||||
Clorox Co. (The) | 3,090 | 413,102 | ||||||
Colgate-Palmolive Co. | 20,806 | 1,498,864 | ||||||
HRG Group, Inc.* | 29,046 | 581,211 | ||||||
Kimberly-Clark Corp. | 7,416 | 962,226 | ||||||
Procter & Gamble Co. (The) | 63,242 | 5,522,924 | ||||||
Spectrum Brands Holdings, Inc.(a) | 2,060 | 296,084 | ||||||
WD-40 Co.(a) | 1,236 | 129,595 | ||||||
10,058,455 | ||||||||
Independent Power and Renewable Electricity Producers – 0.4% | ||||||||
AES Corp. | 56,238 | 636,052 | ||||||
Calpine Corp.* | 206 | 2,101 | ||||||
Dynegy, Inc.* (a) | 45,732 | 293,600 |
Shares | Value | |||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
NRG Energy, Inc. | 109,798 | $ | 1,855,586 | |||||
NRG Yield, Inc., Class A | 618 | 10,716 | ||||||
NRG Yield, Inc., Class C(a) | 29,252 | 517,760 | ||||||
Ormat Technologies, Inc.(a) | 3,090 | 182,495 | ||||||
TerraForm Global, Inc., Class A* | 18,334 | 87,087 | ||||||
TerraForm Power, Inc., Class A* | 26,162 | 329,380 | ||||||
Vivint Solar, Inc.* (a) | 824 | 2,472 | ||||||
3,917,249 | ||||||||
Industrial Conglomerates – 1.2% | ||||||||
3M Co. | 16,068 | 3,146,596 | ||||||
Carlisle Cos., Inc. | 1,648 | 167,091 | ||||||
General Electric Co. | 208,678 | 6,049,575 | ||||||
Honeywell International, Inc. | 20,188 | 2,647,454 | ||||||
Roper Technologies, Inc.(a) | 2,678 | 585,679 | ||||||
12,596,395 | ||||||||
Insurance – 4.1% | ||||||||
Aflac, Inc. | 14,008 | 1,048,919 | ||||||
Alleghany Corp.* | 412 | 251,608 | ||||||
Allied World Assurance Co. Holdings AG | 28,840 | 1,531,116 | ||||||
Allstate Corp. (The) | 15,656 | 1,272,676 | ||||||
Ambac Financial Group, Inc.* | 20,394 | 396,255 | ||||||
American Equity Investment Life Holding Co. | 22,454 | 532,609 | ||||||
American Financial Group, Inc. | 1,442 | 140,321 | ||||||
American International Group, Inc. | 50,470 | 3,074,128 | ||||||
American National Insurance Co. | 2,678 | 313,112 | ||||||
AMERISAFE, Inc.(a) | 1,854 | 106,698 | ||||||
AmTrust Financial Services, Inc. | 6,386 | 102,495 | ||||||
Aon plc | 7,416 | 888,733 | ||||||
Arch Capital Group Ltd.* | 5,150 | 499,395 | ||||||
Argo Group International Holdings Ltd. | 10,300 | 679,285 | ||||||
Arthur J Gallagher & Co. | 7,416 | 413,887 |
See Accompanying Notes to the Financial Statements.
58 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Aspen Insurance Holdings Ltd. | 18,746 | $ | 981,353 | |||||
Assurant, Inc. | 2,678 | 257,731 | ||||||
Assured Guaranty Ltd. | 8,858 | 337,756 | ||||||
Axis Capital Holdings Ltd. | 3,914 | 257,933 | ||||||
Brown & Brown, Inc.(a) | 3,914 | 167,911 | ||||||
Chubb Ltd. | 20,806 | 2,855,624 | ||||||
Cincinnati Financial Corp.(a) | 4,532 | 326,712 | ||||||
CNO Financial Group, Inc. | 56,856 | 1,197,956 | ||||||
Employers Holdings, Inc. | 2,884 | 115,360 | ||||||
Enstar Group Ltd.* | 3,502 | 682,190 | ||||||
Erie Indemnity Co., Class A | 206 | 25,507 | ||||||
Everest Re Group Ltd. | 1,030 | 259,261 | ||||||
FBL Financial Group, Inc., Class A | 3,090 | 205,485 | ||||||
Fidelity & Guaranty Life(a) | 5,562 | 158,239 | ||||||
First American Financial Corp. | 8,240 | 357,698 | ||||||
FNF Group | 7,004 | 286,814 | ||||||
Genworth Financial, Inc., Class A* (a) | 187,254 | 756,506 | ||||||
Greenlight Capital Re Ltd., Class A* (a) | 7,416 | 159,815 | ||||||
Hanover Insurance Group, Inc. (The) | 12,566 | 1,109,201 | ||||||
Hartford Financial Services Group, Inc. (The) | 12,978 | 627,616 | ||||||
HCI Group, Inc. | 1,030 | 49,121 | ||||||
Heritage Insurance Holdings, Inc. | 2,060 | 24,926 | ||||||
Horace Mann Educators Corp. | 11,330 | 437,904 | ||||||
Infinity Property & Casualty Corp. | 2,472 | 245,346 | ||||||
Kemper Corp. | 11,330 | 445,836 | ||||||
Lincoln National Corp. | 13,596 | 896,384 | ||||||
Loews Corp. | 15,862 | 739,486 | ||||||
Maiden Holdings Ltd.(a) | 12,978 | 160,278 | ||||||
Markel Corp.* (a) | 412 | 399,475 | ||||||
Marsh & McLennan Cos., Inc. | 13,596 | 1,007,871 | ||||||
MBIA, Inc.* (a) | 49,852 | 418,757 |
Shares | Value | |||||||
Insurance – (continued) | ||||||||
Mercury General Corp. | 8,446 | $ | 519,345 | |||||
MetLife, Inc. | 49,440 | 2,561,486 | ||||||
National General Holdings Corp. | 14,832 | 337,280 | ||||||
National Western Life Group, Inc., Class A | 412 | 126,171 | ||||||
Navigators Group, Inc. (The) | 6,180 | 334,029 | ||||||
Old Republic International Corp. | 16,686 | 345,066 | ||||||
Primerica, Inc.(a) | 13,596 | 1,139,345 | ||||||
Principal Financial Group, Inc. | 11,124 | 724,506 | ||||||
ProAssurance Corp. | 4,532 | 280,531 | ||||||
Progressive Corp. (The) | 20,394 | 810,050 | ||||||
Prudential Financial, Inc. | 19,776 | 2,116,625 | ||||||
Reinsurance Group of America, Inc. | 1,236 | 154,549 | ||||||
RenaissanceRe Holdings Ltd. | 1,854 | 263,583 | ||||||
RLI Corp.(a) | 3,090 | 176,810 | ||||||
Safety Insurance Group, Inc. | 2,472 | 178,973 | ||||||
Selective Insurance Group, Inc.(a) | 14,626 | 772,253 | ||||||
Stewart Information Services Corp. | 2,884 | 136,817 | ||||||
Torchmark Corp. | 4,532 | 347,650 | ||||||
Travelers Cos., Inc. (The) | 13,596 | 1,654,089 | ||||||
United Fire Group, Inc. | 4,944 | 217,536 | ||||||
Universal Insurance Holdings, | 6,592 | 171,722 | ||||||
Unum Group | 8,858 | 410,391 | ||||||
Validus Holdings Ltd. | 12,566 | 694,648 | ||||||
White Mountains Insurance Group Ltd. | 206 | 176,942 | ||||||
Willis Towers Watson plc | 2,060 | 273,197 | ||||||
WR Berkley Corp. | 2,884 | 196,054 | ||||||
XL Group Ltd. | 15,656 | 655,204 | ||||||
42,978,141 | ||||||||
Internet & Direct Marketing Retail – 1.4% | ||||||||
Amazon.com, Inc.* | 10,094 | 9,336,849 | ||||||
Etsy, Inc.* | 2,884 | 31,032 | ||||||
Expedia, Inc. | 2,678 | 358,102 | ||||||
Groupon, Inc.* (a) | 3,708 | 14,535 | ||||||
HSN, Inc. | 10,506 | 387,671 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 59 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Internet & Direct Marketing Retail – (continued) | ||||||||
Liberty Interactive Corp. QVC Group, Class A* (a) | 22,248 | $ | 471,213 | |||||
Netflix, Inc.* | 10,712 | 1,630,366 | ||||||
Nutrisystem, Inc.(a) | 3,708 | 198,193 | ||||||
Overstock.com, Inc.* | 1,442 | 25,019 | ||||||
PetMed Express, Inc.(a) | 824 | 19,034 | ||||||
Priceline Group, Inc. (The)* | 1,236 | 2,282,670 | ||||||
Shutterfly, Inc.* | 1,648 | 85,531 | ||||||
TripAdvisor, Inc.* | 824 | 37,088 | ||||||
Wayfair, Inc., Class A* (a) | 2,060 | 94,163 | ||||||
14,971,466 | ||||||||
Internet Software & Services – 2.7% | ||||||||
Akamai Technologies, Inc.* (a) | 3,296 | 200,858 | ||||||
Alphabet, Inc., Class A* | 5,150 | 4,761,278 | ||||||
Alphabet, Inc., Class C* | 10,094 | 9,144,760 | ||||||
Blucora, Inc.* | 13,802 | 254,647 | ||||||
Cimpress NV* | 2,472 | 202,902 | ||||||
Cornerstone OnDemand, Inc.* | 1,648 | 64,734 | ||||||
CoStar Group, Inc.* | 1,442 | 347,363 | ||||||
eBay, Inc.* | 25,132 | 839,660 | ||||||
Endurance International Group Holdings, Inc.* | 412 | 3,131 | ||||||
Envestnet, Inc.* | 1,648 | 57,350 | ||||||
Facebook, Inc., Class A* | 58,298 | 8,759,275 | ||||||
Gogo, Inc.* (a) | 1,030 | 12,988 | ||||||
GrubHub, Inc.* | 1,236 | 53,123 | ||||||
IAC/InterActiveCorp* | 1,030 | 85,500 | ||||||
j2 Global, Inc. | 3,708 | 334,610 | ||||||
LogMeIn, Inc. | 2,235 | 252,555 | ||||||
MercadoLibre, Inc. | 412 | 94,311 | ||||||
NIC, Inc.(a) | 2,266 | 48,379 | ||||||
Pandora Media, Inc.* (a) | 1,648 | 17,881 | ||||||
SPS Commerce, Inc.* | 618 | 34,151 | ||||||
Stamps.com, Inc.* (a) | 1,236 | 131,201 | ||||||
VeriSign, Inc.* | 2,678 | 238,128 | ||||||
Web.com Group, Inc.* | 11,948 | 230,597 | ||||||
WebMD Health Corp.* (a) | 3,502 | 189,914 | ||||||
XO Group, Inc.* | 2,266 | 39,768 | ||||||
Yahoo!, Inc.* | 18,540 | 893,813 |
Shares | Value | |||||||
Internet Software & Services – (continued) | ||||||||
Yelp, Inc.* | 412 | $ | 14,589 | |||||
Zillow Group, Inc., Class A* | 6,180 | 237,868 | ||||||
Zillow Group, Inc., Class C* (a) | 2,678 | 104,442 | ||||||
27,649,776 | ||||||||
IT Services – 3.2% | ||||||||
Accenture plc, Class A | 15,038 | 1,824,109 | ||||||
Acxiom Corp.* | 2,472 | 71,441 | ||||||
Alliance Data Systems Corp. | 2,472 | 617,085 | ||||||
Automatic Data Processing, Inc. | 12,978 | 1,356,071 | ||||||
Blackhawk Network Holdings, Inc.* (a) | 15,862 | 641,618 | ||||||
Booz Allen Hamilton Holding Corp. | 8,858 | 318,268 | ||||||
Broadridge Financial Solutions, Inc. | 2,678 | 187,299 | ||||||
CACI International, Inc., Class A* | 6,180 | 729,240 | ||||||
Cardtronics plc, Class A* | 9,476 | 394,012 | ||||||
Cass Information Systems, Inc.(a) | 412 | 27,386 | ||||||
Cognizant Technology Solutions Corp., Class A* | 13,802 | 831,294 | ||||||
Convergys Corp. | 28,222 | 635,277 | ||||||
CoreLogic, Inc.* | 5,974 | 255,329 | ||||||
CSG Systems International, Inc. | 5,356 | 200,903 | ||||||
DST Systems, Inc. | 2,060 | 253,607 | ||||||
DXC Technology Co.* | 9,090 | 684,841 | ||||||
EPAM Systems, Inc.* | 1,854 | 142,758 | ||||||
Euronet Worldwide, Inc.* | 3,502 | 289,335 | ||||||
ExlService Holdings, Inc.* | 1,236 | 58,969 | ||||||
Fidelity National Information Services, Inc. | 6,386 | 537,637 | ||||||
First Data Corp., Class A* | 41,406 | 646,762 | ||||||
Fiserv, Inc.* | 7,004 | 834,456 | ||||||
FleetCor Technologies, Inc.* | 1,648 | 232,599 | ||||||
Forrester Research, Inc.(a) | 412 | 16,707 | ||||||
Gartner, Inc.* | 2,483 | 283,285 | ||||||
Genpact Ltd. | 6,592 | 160,977 | ||||||
Global Payments, Inc. | 4,120 | 336,851 |
See Accompanying Notes to the Financial Statements.
60 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
International Business Machines Corp. | 37,492 | $ | 6,009,593 | |||||
Jack Henry & Associates, Inc. | 1,854 | 179,690 | ||||||
Leidos Holdings, Inc.(a) | 5,150 | 271,199 | ||||||
ManTech International Corp., Class A | 4,532 | 160,886 | ||||||
Mastercard, Inc., Class A | 23,896 | 2,779,583 | ||||||
MAXIMUS, Inc.(a) | 4,326 | 263,843 | ||||||
MoneyGram International, Inc.* | 3,090 | 55,033 | ||||||
Net 1 UEPS Technologies, Inc.* | 10,300 | 111,549 | ||||||
NeuStar, Inc., Class A* | 16,686 | 553,975 | ||||||
Paychex, Inc. | 8,858 | 525,102 | ||||||
PayPal Holdings, Inc.* | 26,162 | 1,248,451 | ||||||
Perficient, Inc.* | 5,974 | 104,067 | ||||||
Sabre Corp.(a) | 2,472 | 57,869 | ||||||
Science Applications International Corp. | 3,502 | 255,611 | ||||||
ServiceSource International, Inc.* | 12,772 | 48,023 | ||||||
Sykes Enterprises, Inc.* | 9,888 | 294,761 | ||||||
TeleTech Holdings, Inc.(a) | 4,326 | 135,187 | ||||||
Teradata Corp.* (a) | 37,698 | 1,100,028 | ||||||
Total System Services, Inc. | 4,944 | 283,341 | ||||||
Travelport Worldwide Ltd. | 39,346 | 518,187 | ||||||
Unisys Corp.* (a) | 7,622 | 86,129 | ||||||
Vantiv, Inc., Class A* | 3,090 | 191,704 | ||||||
Virtusa Corp.* (a) | 7,416 | 229,748 | ||||||
Visa, Inc., Class A | 46,350 | 4,228,047 | ||||||
Western Union Co. (The) | 15,244 | 302,746 | ||||||
WEX, Inc.* (a) | 1,648 | 167,206 | ||||||
32,729,674 | ||||||||
Leisure Products – 0.2% | ||||||||
American Outdoor Brands Corp.* (a) | 18,128 | 401,535 | ||||||
Brunswick Corp. | 5,356 | 303,953 | ||||||
Callaway Golf Co. | 5,562 | 65,910 | ||||||
Hasbro, Inc.(a) | 3,090 | 306,250 | ||||||
Mattel, Inc.(a) | 10,712 | 240,163 | ||||||
Nautilus, Inc.* (a) | 412 | 7,498 |
Shares | Value | |||||||
Leisure Products – (continued) | ||||||||
Polaris Industries, Inc.(a) | 1,236 | $ | 105,381 | |||||
Sturm Ruger & Co., Inc.(a) | 6,386 | 386,034 | ||||||
Vista Outdoor, Inc.* (a) | 24,514 | 479,494 | ||||||
2,296,218 | ||||||||
Life Sciences Tools & Services – 0.5% | ||||||||
Agilent Technologies, Inc. | 5,562 | 306,188 | ||||||
Bio-Rad Laboratories, Inc., Class A* | 206 | 44,962 | ||||||
Bio-Techne Corp. | 2,266 | 242,643 | ||||||
Bruker Corp. | 4,944 | 120,584 | ||||||
Cambrex Corp.* (a) | 4,120 | 244,522 | ||||||
Charles River Laboratories International, Inc.* | 3,090 | 277,173 | ||||||
Illumina, Inc.* | 2,884 | 533,136 | ||||||
Mettler-Toledo International, Inc.* | 824 | 423,058 | ||||||
NeoGenomics, Inc.* | 4,326 | 32,661 | ||||||
PAREXEL International Corp.* | 3,708 | 236,682 | ||||||
PerkinElmer, Inc. | 1,854 | 110,146 | ||||||
Quintiles IMS Holdings, Inc.* | 4,944 | 416,681 | ||||||
Thermo Fisher Scientific, Inc. | 8,652 | 1,430,435 | ||||||
VWR Corp.* | 2,678 | 75,680 | ||||||
Waters Corp.* | 1,442 | 244,982 | ||||||
4,739,533 | ||||||||
Machinery – 2.4% | ||||||||
Actuant Corp., Class A(a) | 1,030 | 28,119 | ||||||
AGCO Corp. | 3,090 | 197,729 | ||||||
Alamo Group, Inc. | 824 | 65,145 | ||||||
Albany International Corp., Class A | 3,708 | 180,765 | ||||||
Altra Industrial Motion Corp. | 1,236 | 54,569 | ||||||
American Railcar Industries, Inc.(a) | 1,854 | 77,775 | ||||||
Astec Industries, Inc. | 1,648 | 104,401 | ||||||
Barnes Group, Inc. | 10,712 | 588,839 | ||||||
Briggs & Stratton Corp. | 2,884 | 72,071 | ||||||
Caterpillar, Inc. | 19,364 | 1,980,163 | ||||||
Chart Industries, Inc.* (a) | 7,210 | 263,237 | ||||||
CIRCOR International, Inc.(a) | 2,266 | 151,165 | ||||||
Colfax Corp.* | 11,948 | 483,536 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 61 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Columbus McKinnon Corp.(a) | 824 | $ | 21,531 | |||||
Crane Co. | 7,004 | 559,690 | ||||||
Cummins, Inc. | 8,034 | 1,212,652 | ||||||
Deere & Co. | 10,094 | 1,126,591 | ||||||
Douglas Dynamics, Inc.(a) | 2,060 | 65,714 | ||||||
Dover Corp. | 5,356 | 422,481 | ||||||
Energy Recovery, Inc.* (a) | 4,532 | 38,250 | ||||||
EnPro Industries, Inc.(a) | 1,030 | 72,770 | ||||||
ESCO Technologies, Inc. | 618 | 36,369 | ||||||
Federal Signal Corp.(a) | 4,738 | 73,960 | ||||||
Flowserve Corp. | 618 | 31,438 | ||||||
Fortive Corp. | 6,592 | 417,010 | ||||||
Franklin Electric Co., Inc. | 1,442 | 59,266 | ||||||
Global Brass & Copper Holdings, Inc. | 5,768 | 205,629 | ||||||
Gorman-Rupp Co. (The)(a) | 1,030 | 29,479 | ||||||
Graco, Inc.(a) | 824 | 88,868 | ||||||
Greenbrier Cos., Inc. (The)(a) | 7,828 | 340,127 | ||||||
Hillenbrand, Inc. | 14,832 | 547,301 | ||||||
IDEX Corp. | 1,442 | 151,064 | ||||||
Illinois Tool Works, Inc. | 9,888 | 1,365,434 | ||||||
Ingersoll-Rand plc | 5,974 | 530,193 | ||||||
ITT, Inc.(a) | 6,386 | 269,042 | ||||||
John Bean Technologies Corp.(a) | 3,502 | 310,452 | ||||||
Kadant, Inc. | 3,090 | 192,044 | ||||||
Lincoln Electric Holdings, Inc. | 1,442 | 128,381 | ||||||
Lindsay Corp.(a) | 206 | 17,893 | ||||||
Lydall, Inc.* | 3,914 | 205,094 | ||||||
Manitowoc Co., Inc. (The)* | 16,068 | 95,926 | ||||||
Meritor, Inc.* (a) | 20,394 | 363,217 | ||||||
Middleby Corp. (The)* | 3,090 | 420,642 | ||||||
Mueller Industries, Inc. | 5,356 | 171,606 | ||||||
Mueller Water Products, Inc., Class A | 12,566 | 141,368 | ||||||
Navistar International Corp.* | 16,274 | 437,933 | ||||||
NN, Inc.(a) | 8,240 | 227,424 | ||||||
Nordson Corp.(a) | 824 | 103,165 | ||||||
Oshkosh Corp. | 4,532 | 314,475 | ||||||
PACCAR, Inc.(a) | 15,450 | 1,030,978 | ||||||
Parker-Hannifin Corp. | 4,944 | 794,995 |
Shares | Value | |||||||
Machinery – (continued) | ||||||||
Pentair plc | 2,472 | $ | 159,469 | |||||
Proto Labs, Inc.* | 412 | 23,896 | ||||||
RBC Bearings, Inc.* (a) | 1,648 | 165,294 | ||||||
Rexnord Corp.* | 34,196 | 834,382 | ||||||
Snap-on, Inc. | 1,442 | 241,578 | ||||||
SPX Corp.* | 20,188 | 485,723 | ||||||
SPX FLOW, Inc.* | 14,420 | 521,139 | ||||||
Standex International Corp. | 1,854 | 174,183 | ||||||
Stanley Black & Decker, Inc. | 4,326 | 588,985 | ||||||
Sun Hydraulics Corp. | 824 | 32,004 | ||||||
Tennant Co.(a) | 1,030 | 75,448 | ||||||
Terex Corp. | 9,888 | 345,882 | ||||||
Timken Co. (The)(a) | 17,922 | 864,737 | ||||||
Titan International, Inc. | 6,592 | 70,600 | ||||||
Toro Co. (The) | 7,416 | 481,447 | ||||||
TriMas Corp.* | 9,270 | 212,747 | ||||||
Trinity Industries, Inc.(a) | 47,998 | 1,291,146 | ||||||
Wabash National Corp.(a) | 16,686 | 380,107 | ||||||
WABCO Holdings, Inc.* | 1,442 | 171,411 | ||||||
Wabtec Corp.(a) | 1,648 | 138,251 | ||||||
Watts Water Technologies, Inc., Class A(a) | 2,060 | 128,132 | ||||||
Woodward, Inc. | 4,120 | 278,800 | ||||||
Xylem, Inc. | 3,090 | 158,857 | ||||||
24,692,184 | ||||||||
Marine – 0.0%(c) | ||||||||
Kirby Corp.* (a) | 412 | 29,087 | ||||||
Matson, Inc.(a) | 3,914 | 124,074 | ||||||
153,161 | ||||||||
Media – 2.7% | ||||||||
AMC Entertainment Holdings, Inc., Class A | 430 | 13,029 | ||||||
AMC Networks, Inc., Class A* | 22,660 | 1,352,349 | ||||||
CBS Corp. (Non-Voting), Class B | 12,154 | 808,970 | ||||||
Charter Communications, Inc., Class A* | 7,004 | 2,417,501 | ||||||
Cinemark Holdings, Inc.(a) | 4,738 | 204,682 | ||||||
Comcast Corp., Class A | 127,720 | 5,005,347 | ||||||
Discovery Communications, Inc., Class A* (a) | 1,854 | 53,358 |
See Accompanying Notes to the Financial Statements.
62 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Discovery Communications, Inc., Class C* (a) | 16,892 | $ | 472,638 | |||||
DISH Network Corp., Class A* | 5,974 | 384,965 | ||||||
Entravision Communications Corp., Class A | 12,360 | 76,632 | ||||||
EW Scripps Co. (The), Class A* (a) | 8,858 | 197,356 | ||||||
Gannett Co., Inc. | 34,196 | 285,879 | ||||||
Global Eagle Entertainment, Inc.* (a) | 15,038 | 46,618 | ||||||
Gray Television, Inc.* | 21,424 | 313,862 | ||||||
Interpublic Group of Cos., Inc. (The) | 9,064 | 213,639 | ||||||
John Wiley & Sons, Inc., Class A | 4,738 | 249,693 | ||||||
Liberty Media Corp-Liberty Braves, Class C* | 5,150 | 126,278 | ||||||
Liberty Media Corp-Liberty Formula One, Class A* | 13,596 | 461,040 | ||||||
Liberty Media Corp-Liberty Formula One, Class C* | 1,854 | 64,927 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class A* | 2,266 | 86,335 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class C* | 4,944 | 187,823 | ||||||
Lions Gate Entertainment Corp., Class A* (a) | 2,158 | 56,475 | ||||||
Lions Gate Entertainment Corp., Class B* | 1,855 | 44,242 | ||||||
Live Nation Entertainment, Inc.* | 9,476 | 304,748 | ||||||
Meredith Corp.(a) | 7,828 | 458,329 | ||||||
MSG Networks, Inc., Class A* | 14,008 | 349,500 | ||||||
National CineMedia, Inc. | 412 | 4,890 | ||||||
New York Times Co. (The), Class A(a) | 12,154 | 175,625 | ||||||
News Corp., Class A | 4,120 | 52,406 | ||||||
News Corp., Class B | 1,236 | 16,068 | ||||||
Nexstar Media Group, Inc. | 11,742 | 810,198 | ||||||
Omnicom Group, Inc. | 4,326 | 355,251 |
Shares | Value | |||||||
Media – (continued) | ||||||||
Regal Entertainment Group, Class A(a) | 26,574 | $ | 586,488 | |||||
Scholastic Corp.(a) | 3,914 | 169,202 | ||||||
Scripps Networks Interactive, Inc., Class A(a) | 5,356 | 400,200 | ||||||
Sinclair Broadcast Group, Inc., Class A(a) | 21,012 | 828,923 | ||||||
Sirius XM Holdings, Inc.(a) | 53,972 | 267,161 | ||||||
TEGNA, Inc. | 2,884 | 73,484 | ||||||
Time Warner, Inc. | 19,570 | 1,942,714 | ||||||
Time, Inc. | 30,076 | 457,155 | ||||||
Tribune Media Co., Class A | 23,072 | 843,512 | ||||||
tronc, Inc.* | 206 | 2,954 | ||||||
Twenty-First Century Fox, Inc., Class A | 43,672 | 1,333,743 | ||||||
Viacom, Inc., Class A | 2,678 | 119,439 | ||||||
Viacom, Inc., Class B | 12,360 | 526,042 | ||||||
Walt Disney Co. (The) | 38,110 | 4,405,516 | ||||||
World Wrestling Entertainment, Inc., Class A | 3,296 | 70,633 | ||||||
27,677,819 | ||||||||
Metals & Mining – 0.8% | ||||||||
AK Steel Holding Corp.* (a) | 98,262 | 622,981 | ||||||
Allegheny Technologies, Inc.(a) | 37,080 | 680,418 | ||||||
Carpenter Technology Corp.(a) | 7,210 | 292,726 | ||||||
Century Aluminum Co.* | 18,128 | 247,266 | ||||||
Cliffs Natural Resources, Inc.* | 84,048 | 564,802 | ||||||
Coeur Mining, Inc.* (a) | 18,746 | 169,839 | ||||||
Commercial Metals Co.(a) | 31,930 | 595,175 | ||||||
Compass Minerals International, Inc.(a) | 412 | 27,192 | ||||||
Freeport-McMoRan, Inc.* | 28,428 | 362,457 | ||||||
Hecla Mining Co. | 41,612 | 226,785 | ||||||
Kaiser Aluminum Corp. | 3,090 | 260,827 | ||||||
Materion Corp. | 1,236 | 47,030 | ||||||
McEwen Mining, Inc.(a) | 14,832 | 45,089 | ||||||
Newmont Mining Corp. | 18,952 | 640,767 | ||||||
Nucor Corp. | 4,326 | 265,314 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 63 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Reliance Steel & Aluminum Co. | 412 | $ | 32,474 | |||||
Schnitzer Steel Industries, Inc., Class A | 10,094 | 190,777 | ||||||
Steel Dynamics, Inc. | 2,884 | 104,228 | ||||||
Stillwater Mining Co.* | 18,334 | 329,645 | ||||||
SunCoke Energy, Inc.* | 33,166 | 304,132 | ||||||
TimkenSteel Corp.* (a) | 26,162 | 394,523 | ||||||
United States Steel Corp. | 56,238 | 1,255,232 | ||||||
Worthington Industries, Inc. | 14,626 | 636,231 | ||||||
8,295,910 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 1.1% | ||||||||
AG Mortgage Investment Trust, Inc. | 14,420 | 273,259 | ||||||
AGNC Investment Corp. | 40,376 | 850,722 | ||||||
Altisource Residential Corp.(a) | 8,652 | 124,416 | ||||||
Annaly Capital Management, Inc. | 93,730 | 1,106,951 | ||||||
Anworth Mortgage Asset Corp.(a) | 8,034 | 47,079 | ||||||
Apollo Commercial Real Estate Finance, Inc.(a) | 16,480 | 317,899 | ||||||
ARMOUR Residential REIT, Inc.(a) | 15,038 | 361,965 | ||||||
Blackstone Mortgage Trust, Inc., Class A(a) | 31,724 | 979,637 | ||||||
Capstead Mortgage Corp.(a) | 24,514 | 273,086 | ||||||
Chimera Investment Corp. | 50,264 | 1,023,375 | ||||||
CYS Investments, Inc.(a) | 59,328 | 506,068 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a) | 1,442 | 31,609 | ||||||
Invesco Mortgage Capital, Inc.(a) | 31,518 | 514,059 | ||||||
Ladder Capital Corp. | 20,124 | 294,414 | ||||||
MFA Financial, Inc. | 124,836 | 1,037,387 | ||||||
MTGE Investment Corp. | 6,386 | 114,948 | ||||||
New Residential Investment Corp. | 86,520 | 1,442,288 |
Shares | Value | |||||||
Mortgage Real Estate Investment Trusts (REITs) – (continued) | ||||||||
New York Mortgage Trust, Inc.(a) | 44,702 | $ | 286,540 | |||||
Orchid Island Capital, Inc.(a) | 4,120 | 43,672 | ||||||
PennyMac Mortgage Investment Trust | 19,982 | 357,278 | ||||||
Redwood Trust, Inc.(a) | 16,480 | 281,314 | ||||||
Resource Capital Corp. | 5,974 | 55,857 | ||||||
Starwood Property Trust, Inc. | 4,120 | 93,483 | ||||||
Two Harbors Investment Corp. | 138,432 | 1,382,936 | ||||||
Western Asset Mortgage Capital Corp. | 5,150 | 54,229 | ||||||
11,854,471 | ||||||||
Multiline Retail – 0.5% | ||||||||
Big Lots, Inc.(a) | 11,536 | 582,453 | ||||||
Dillard’s, Inc., Class A | 11,536 | 638,748 | ||||||
Dollar General Corp. | 6,798 | 494,283 | ||||||
Dollar Tree, Inc.* (a) | 12,154 | 1,005,987 | ||||||
JC Penney Co., Inc.* (a) | 24,720 | 132,994 | ||||||
Kohl’s Corp. | 6,180 | 241,205 | ||||||
Macy’s, Inc.(a) | 17,922 | 523,681 | ||||||
Nordstrom, Inc.(a) | 5,562 | 268,478 | ||||||
Sears Holdings Corp.* (a) | 618 | 6,316 | ||||||
Target Corp. | 29,664 | 1,656,734 | ||||||
Tuesday Morning Corp.* (a) | 2,678 | 8,703 | ||||||
5,559,582 | ||||||||
Multi-Utilities – 0.8% | ||||||||
Ameren Corp. | 9,270 | 506,976 | ||||||
Avista Corp.(a) | 5,768 | 232,681 | ||||||
Black Hills Corp.(a) | 4,120 | 280,242 | ||||||
CenterPoint Energy, Inc. | 10,712 | 305,613 | ||||||
CMS Energy Corp. | 5,974 | 271,220 | ||||||
Consolidated Edison, Inc.(a) | 11,536 | 914,574 | ||||||
Dominion Resources, Inc.(a) | 12,772 | 988,936 | ||||||
DTE Energy Co. | 7,210 | 754,094 | ||||||
NiSource, Inc. | 5,768 | 139,874 | ||||||
NorthWestern Corp.(a) | 8,858 | 529,531 | ||||||
Public Service Enterprise Group, Inc. | 23,072 | 1,016,322 | ||||||
SCANA Corp. | 3,296 | 218,558 | ||||||
Sempra Energy | 5,562 | 628,617 |
See Accompanying Notes to the Financial Statements.
64 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Multi-Utilities – (continued) | ||||||||
Unitil Corp. | 2,472 | $ | 119,719 | |||||
Vectren Corp. | 6,592 | 391,697 | ||||||
WEC Energy Group, Inc. | 10,919 | 660,818 | ||||||
7,959,472 | ||||||||
Oil, Gas & Consumable Fuels – 3.5% | ||||||||
Alon USA Energy, Inc. | 13,802 | 166,866 | ||||||
Anadarko Petroleum Corp. | 11,536 | 657,783 | ||||||
Apache Corp. | 12,154 | 591,171 | ||||||
Bill Barrett Corp.* | 18,540 | 71,194 | ||||||
Cabot Oil & Gas Corp. | 9,476 | 220,222 | ||||||
Callon Petroleum Co.* | 15,862 | 187,806 | ||||||
Carrizo Oil & Gas, Inc.* (a) | 4,532 | 113,980 | ||||||
Cheniere Energy, Inc.* | 6,798 | 308,289 | ||||||
Chesapeake Energy Corp.* (a) | 39,140 | 205,876 | ||||||
Chevron Corp. | 48,616 | 5,187,327 | ||||||
Cimarex Energy Co.(a) | 1,236 | 144,216 | ||||||
Clean Energy Fuels Corp.* (a) | 824 | 2,011 | ||||||
Cobalt International Energy, Inc.* (a) | 112,888 | 44,150 | ||||||
Concho Resources, Inc.* | 1,854 | 234,828 | ||||||
ConocoPhillips | 32,960 | 1,579,114 | ||||||
CONSOL Energy, Inc.* | 14,832 | 225,150 | ||||||
Continental Resources, Inc.* | 4,738 | 200,939 | ||||||
CVR Energy, Inc. | 618 | 13,528 | ||||||
Delek US Holdings, Inc. | 10,712 | 257,838 | ||||||
Denbury Resources, Inc.* | 161,504 | 358,539 | ||||||
Devon Energy Corp. | 13,802 | 545,041 | ||||||
Diamondback Energy, Inc.* (a) | 3,090 | 308,506 | ||||||
Energen Corp.* | 824 | 42,840 | ||||||
EOG Resources, Inc. | 15,244 | 1,410,070 | ||||||
EP Energy Corp., Class A* (a) | 29,252 | 132,219 | ||||||
EQT Corp. | 2,678 | 155,699 | ||||||
EXCO Resources, Inc.* (a) | 19,776 | 9,690 | ||||||
Exxon Mobil Corp. | 106,502 | 8,695,888 | ||||||
Gener8 Maritime, Inc.* | 31,106 | 167,039 | ||||||
Green Plains, Inc.(a) | 3,708 | 85,284 | ||||||
Hess Corp. | 5,768 | 281,651 |
Shares | Value | |||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
HollyFrontier Corp. | 3,502 | $ | 98,546 | |||||
Kinder Morgan, Inc. | 49,852 | 1,028,447 | ||||||
Kosmos Energy Ltd.* (a) | 3,914 | 23,523 | ||||||
Marathon Oil Corp. | 22,660 | 336,954 | ||||||
Marathon Petroleum Corp. | 24,308 | 1,238,250 | ||||||
Matador Resources Co.* (a) | 4,944 | 107,186 | ||||||
Murphy Oil Corp.(a) | 824 | 21,572 | ||||||
Newfield Exploration Co.* | 4,120 | 142,634 | ||||||
Noble Energy, Inc. | 7,622 | 246,419 | ||||||
Oasis Petroleum, Inc.* (a) | 23,484 | 280,399 | ||||||
Occidental Petroleum Corp. | 11,742 | 722,603 | ||||||
ONEOK, Inc. | 2,472 | 130,052 | ||||||
Parsley Energy, Inc., Class A* (a) | 1,236 | 36,820 | ||||||
PBF Energy, Inc., Class A(a) | 38,316 | 855,213 | ||||||
PDC Energy, Inc.* (a) | 1,854 | 102,396 | ||||||
Phillips 66 | 16,068 | 1,278,370 | ||||||
Pioneer Natural Resources Co. | 5,150 | 890,898 | ||||||
QEP Resources, Inc.* | 14,214 | 167,867 | ||||||
Range Resources Corp. | 4,532 | 120,053 | ||||||
Renewable Energy Group, Inc.* (a) | 1,236 | 12,916 | ||||||
REX American Resources Corp.* | 1,236 | 117,024 | ||||||
Rice Energy, Inc.* | 23,278 | 495,589 | ||||||
RSP Permian, Inc.* | 1,854 | 70,545 | ||||||
Sanchez Energy Corp.* (a) | 19,158 | 148,283 | ||||||
SemGroup Corp., Class A(a) | 618 | 20,579 | ||||||
SM Energy Co. | 1,030 | 23,268 | ||||||
Southwestern Energy Co.* | 26,162 | 196,477 | ||||||
SRC ENERGY, Inc.* (a) | 57,062 | 430,247 | ||||||
Targa Resources Corp. | 7,004 | 386,131 | ||||||
Tesoro Corp. | 4,532 | 361,246 | ||||||
Valero Energy Corp. | 19,982 | 1,291,037 | ||||||
Western Refining, Inc. | 25,215 | 869,665 | ||||||
Whiting Petroleum Corp.* | 23,072 | 191,498 | ||||||
Williams Cos., Inc. (The) | 10,712 | 328,109 | ||||||
World Fuel Services Corp. | 21,424 | 789,046 | ||||||
WPX Energy, Inc.* | 35,844 | 427,619 | ||||||
36,592,235 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 65 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – 0.3% | ||||||||
Boise Cascade Co.* | 5,150 | $ | 157,075 | |||||
Clearwater Paper Corp.* | 2,472 | 120,139 | ||||||
Domtar Corp. | 21,836 | 865,797 | ||||||
KapStone Paper and Packaging Corp. | 26,780 | 564,790 | ||||||
Louisiana-Pacific Corp.* | 12,360 | 318,146 | ||||||
Mercer International, Inc. | 17,098 | 208,596 | ||||||
Neenah Paper, Inc. | 2,884 | 225,961 | ||||||
PH Glatfelter Co. | 8,652 | 186,105 | ||||||
Resolute Forest Products, Inc.* | 1,030 | 6,438 | ||||||
Schweitzer-Mauduit International, Inc. | 4,738 | 203,971 | ||||||
2,857,018 | ||||||||
Personal Products – 0.2% | ||||||||
Coty, Inc., Class A | 17,922 | 319,908 | ||||||
Edgewell Personal Care Co.* | 2,884 | 206,177 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 4,738 | 412,869 | ||||||
Herbalife Ltd.* (a) | 5,356 | 338,820 | ||||||
Inter Parfums, Inc. | 2,266 | 85,995 | ||||||
Medifast, Inc. | 1,236 | 57,251 | ||||||
Natural Health Trends Corp.(a) | 824 | 23,632 | ||||||
Nu Skin Enterprises, Inc., Class A(a) | 10,094 | 557,492 | ||||||
Revlon, Inc., Class A* | 2,266 | 58,803 | ||||||
USANA Health Sciences, Inc.* | 1,442 | 81,978 | ||||||
2,142,925 | ||||||||
Pharmaceuticals – 3.2% | ||||||||
Akorn, Inc.* (a) | 11,536 | 385,879 | ||||||
Allergan plc | 9,476 | 2,310,817 | ||||||
Bristol-Myers Squibb Co. | 43,054 | 2,413,177 | ||||||
Depomed, Inc.* (a) | 4,738 | 56,809 | ||||||
Eli Lilly & Co. | 26,368 | 2,163,758 | ||||||
Horizon Pharma plc* (a) | 23,690 | 364,352 | ||||||
Impax Laboratories, Inc.* (a) | 206 | 2,894 | ||||||
Jazz Pharmaceuticals plc* (a) | 2,472 | 393,740 |
Shares | Value | |||||||
Pharmaceuticals – (continued) | ||||||||
Johnson & Johnson | 70,452 | $ | 8,698,708 | |||||
Lannett Co., Inc.* (a) | 1,030 | 26,780 | ||||||
Medicines Co. (The)* (a) | 3,090 | 152,399 | ||||||
Merck & Co., Inc. | 69,834 | 4,352,753 | ||||||
Mylan NV* | 10,506 | 392,399 | ||||||
Nektar Therapeutics* | 5,562 | 105,511 | ||||||
Pacira Pharmaceuticals, Inc.* | 3,502 | 170,022 | ||||||
Perrigo Co. plc | 6,386 | 472,181 | ||||||
Pfizer, Inc. | 282,838 | 9,593,865 | ||||||
Prestige Brands Holdings, Inc.* (a) | 3,914 | 224,703 | ||||||
SciClone Pharmaceuticals, Inc.* (a) | 4,326 | 41,746 | ||||||
Supernus Pharmaceuticals, Inc.* (a) | 412 | 13,431 | ||||||
TherapeuticsMD, Inc.* (a) | 206 | 1,051 | ||||||
Zoetis, Inc. | 11,124 | 624,168 | ||||||
32,961,143 | ||||||||
Professional Services – 0.5% | ||||||||
Acacia Research Corp.* | 15,450 | 84,202 | ||||||
CBIZ, Inc.* (a) | 9,682 | 152,492 | ||||||
Dun & Bradstreet Corp. (The) | 824 | 90,319 | ||||||
Equifax, Inc. | 2,678 | 362,360 | ||||||
Exponent, Inc.(a) | 2,472 | 151,163 | ||||||
FTI Consulting, Inc.* (a) | 11,124 | 384,779 | ||||||
GP Strategies Corp.* | 1,030 | 27,913 | ||||||
Heidrick & Struggles International, Inc. | 1,442 | 31,003 | ||||||
Huron Consulting Group, Inc.* | 6,592 | 293,344 | ||||||
ICF International, Inc.* | 4,120 | 181,898 | ||||||
IHS Markit Ltd.* (a) | 2,923 | 126,858 | ||||||
Insperity, Inc. | 2,060 | 188,181 | ||||||
Kelly Services, Inc., Class A | 2,678 | 59,773 | ||||||
Kforce, Inc. | 3,090 | 70,143 | ||||||
Korn/Ferry International | 10,712 | 347,069 | ||||||
ManpowerGroup, Inc. | 1,236 | 124,811 | ||||||
Mistras Group, Inc.* (a) | 206 | 4,635 | ||||||
Navigant Consulting, Inc.* | 15,244 | 365,399 | ||||||
Nielsen Holdings plc | 6,180 | 254,183 | ||||||
On Assignment, Inc.* | 16,480 | 853,170 | ||||||
Resources Connection, Inc. | 2,884 | 40,088 |
See Accompanying Notes to the Financial Statements.
66 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Professional Services – (continued) | ||||||||
Robert Half International, Inc. | 2,266 | $ | 104,349 | |||||
RPX Corp.* | 8,446 | 108,447 | ||||||
TriNet Group, Inc.* | 2,060 | 60,564 | ||||||
TrueBlue, Inc.* | 15,244 | 416,923 | ||||||
Verisk Analytics, Inc.* | 3,502 | 290,001 | ||||||
WageWorks, Inc.* (a) | 1,648 | 121,622 | ||||||
5,295,689 | ||||||||
Real Estate Management & Development – 0.2% | ||||||||
Altisource Portfolio Solutions SA* (a) | 1,648 | 36,404 | ||||||
CBRE Group, Inc., Class A* | 5,356 | 191,798 | ||||||
HFF, Inc., Class A(a) | 2,884 | 90,558 | ||||||
Howard Hughes Corp. (The)* | 824 | 101,443 | ||||||
Jones Lang LaSalle, Inc. | 2,060 | 236,612 | ||||||
Kennedy-Wilson Holdings, Inc.(a) | 2,472 | 50,429 | ||||||
Realogy Holdings Corp. | 48,410 | 1,478,925 | ||||||
St Joe Co. (The)* | 6,798 | 118,965 | ||||||
2,305,134 | ||||||||
Road & Rail – 1.0% | ||||||||
AMERCO | 618 | 231,416 | ||||||
ArcBest Corp. | 8,240 | 217,948 | ||||||
Avis Budget Group, Inc.* (a) | 27,810 | 848,205 | ||||||
CSX Corp. | 38,522 | 1,958,458 | ||||||
Genesee & Wyoming, Inc., Class A* | 412 | 27,917 | ||||||
Heartland Express, Inc. | 2,884 | 58,026 | ||||||
Hertz Global Holdings, Inc.* (a) | 26,162 | 431,411 | ||||||
JB Hunt Transport Services, Inc. | 1,442 | 129,290 | ||||||
Kansas City Southern | 1,236 | 111,327 | ||||||
Knight Transportation, Inc.(a) | 5,562 | 190,777 | ||||||
Landstar System, Inc. | 2,678 | 228,835 | ||||||
Marten Transport Ltd. | 4,326 | 107,285 | ||||||
Norfolk Southern Corp. | 11,330 | 1,331,162 | ||||||
Old Dominion Freight Line, Inc.(a) | 3,296 | 291,762 | ||||||
Roadrunner Transportation Systems, Inc.* | 206 | 1,384 |
Shares | Value | |||||||
Road & Rail – (continued) | ||||||||
Ryder System, Inc. | 3,296 | $ | 223,831 | |||||
Saia, Inc.* (a) | 8,240 | 396,756 | ||||||
Swift Transportation Co.* (a) | 34,814 | 855,728 | ||||||
Union Pacific Corp. | 20,188 | 2,260,249 | ||||||
Werner Enterprises, Inc.(a) | 1,030 | 28,119 | ||||||
9,929,886 | ||||||||
Semiconductors & Semiconductor Equipment – 3.0% | ||||||||
Advanced Energy Industries, Inc.* | 5,150 | 380,070 | ||||||
Advanced Micro Devices, Inc.* | 56,856 | 756,185 | ||||||
Amkor Technology, Inc.* (a) | 25,544 | 300,908 | ||||||
Analog Devices, Inc. | 7,195 | 548,259 | ||||||
Applied Materials, Inc. | 33,372 | 1,355,237 | ||||||
Broadcom Ltd. | 8,858 | 1,955,935 | ||||||
Brooks Automation, Inc. | 4,326 | 109,275 | ||||||
Cabot Microelectronics Corp. | 1,854 | 145,261 | ||||||
Cavium, Inc.* | 4,576 | 315,058 | ||||||
CEVA, Inc.* (a) | 206 | 7,416 | ||||||
Cirrus Logic, Inc.* | 9,064 | 583,268 | ||||||
Cypress Semiconductor Corp.(a) | 78,280 | 1,096,703 | ||||||
Diodes, Inc.* | 824 | 19,273 | ||||||
Entegris, Inc.* | 14,626 | 362,725 | ||||||
Exar Corp.* | 412 | 5,360 | ||||||
First Solar, Inc.* (a) | 3,090 | 91,310 | ||||||
FormFactor, Inc.* | 7,622 | 84,604 | ||||||
Inphi Corp.* (a) | 2,060 | 85,325 | ||||||
Integrated Device Technology, Inc.* | 11,124 | 266,865 | ||||||
Intel Corp. | 209,708 | 7,580,944 | ||||||
IXYS Corp. | 824 | 11,495 | ||||||
KLA-Tencor Corp. | 1,854 | 182,100 | ||||||
Kulicke & Soffa Industries, Inc.* | 4,120 | 91,958 | ||||||
Lam Research Corp. | 5,974 | 865,334 | ||||||
Lattice Semiconductor Corp.* | 6,592 | 45,221 | ||||||
MACOM Technology Solutions Holdings, Inc.* (a) | 627 | 30,648 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 67 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Marvell Technology Group Ltd. | 14,420 | $ | 216,588 | |||||
Maxim Integrated Products, Inc. | 7,004 | 309,227 | ||||||
MaxLinear, Inc., Class A* (a) | 8,446 | 235,052 | ||||||
Microchip Technology, Inc.(a) | 3,502 | 264,681 | ||||||
Micron Technology, Inc.* | 35,844 | 991,803 | ||||||
Microsemi Corp.* | 12,978 | 609,187 | ||||||
MKS Instruments, Inc.(a) | 4,532 | 354,629 | ||||||
Monolithic Power Systems, Inc. | 3,090 | 282,735 | ||||||
Nanometrics, Inc.* | 206 | 6,500 | ||||||
NVIDIA Corp. | 13,596 | 1,418,063 | ||||||
ON Semiconductor Corp.* (a) | 10,712 | 151,896 | ||||||
PDF Solutions, Inc.* | 824 | 15,672 | ||||||
Photronics, Inc.* | 8,446 | 97,129 | ||||||
Power Integrations, Inc. | 1,442 | 95,100 | ||||||
Qorvo, Inc.* | 8,446 | 574,581 | ||||||
QUALCOMM, Inc. | 65,920 | 3,542,541 | ||||||
Rambus, Inc.* (a) | 11,948 | 149,589 | ||||||
Rudolph Technologies, Inc.* | 1,442 | 35,329 | ||||||
Silicon Laboratories, Inc.* (a) | 2,266 | 161,226 | ||||||
Skyworks Solutions, Inc. | 4,532 | 452,022 | ||||||
SolarEdge Technologies, Inc.* (a) | 6,180 | 99,807 | ||||||
SunPower Corp.* (a) | 4,120 | 28,593 | ||||||
Synaptics, Inc.* | 10,300 | 564,131 | ||||||
Teradyne, Inc. | 6,386 | 225,234 | ||||||
Texas Instruments, Inc. | 27,398 | 2,169,374 | ||||||
Veeco Instruments, Inc.* (a) | 8,652 | 285,516 | ||||||
Xcerra Corp.* | 1,030 | 10,094 | ||||||
Xilinx, Inc. | 5,150 | 325,017 | ||||||
Xperi Corp. | 5,356 | 179,962 | ||||||
31,128,015 | ||||||||
Software – 3.0% | ||||||||
8x8, Inc.* | 6,386 | 92,916 | ||||||
ACI Worldwide, Inc.* (a) | 9,682 | 208,066 | ||||||
Activision Blizzard, Inc. | 15,038 | 785,735 | ||||||
Adobe Systems, Inc.* | 10,918 | 1,460,173 |
Shares | Value | |||||||
Software – (continued) | ||||||||
ANSYS, Inc.* | 2,472 | $ | 272,316 | |||||
Aspen Technology, Inc.* | 5,356 | 329,340 | ||||||
Autodesk, Inc.* | 4,532 | 408,197 | ||||||
Blackbaud, Inc.(a) | 3,502 | 281,596 | ||||||
Bottomline Technologies de, Inc.* | 412 | 9,600 | ||||||
BroadSoft, Inc.* (a) | 1,030 | 39,552 | ||||||
CA, Inc. | 7,828 | 256,993 | ||||||
Cadence Design Systems, Inc.* | 5,150 | 167,736 | ||||||
Callidus Software, Inc.* | 3,296 | 69,381 | ||||||
CDK Global, Inc. | 2,060 | 133,921 | ||||||
Citrix Systems, Inc.* | 2,266 | 183,410 | ||||||
Digimarc Corp.* (a) | 618 | 17,829 | ||||||
Ebix, Inc.(a) | 4,326 | 266,914 | ||||||
Electronic Arts, Inc.* | 7,004 | 664,119 | ||||||
Ellie Mae, Inc.* | 2,472 | 251,551 | ||||||
Fair Isaac Corp. | 1,854 | 251,180 | ||||||
FireEye, Inc.* (a) | 5,150 | 64,426 | ||||||
Fortinet, Inc.* (a) | 8,240 | 321,360 | ||||||
Glu Mobile, Inc.* (a) | 412 | 952 | ||||||
Guidewire Software, Inc.* (a) | 2,060 | 126,669 | ||||||
Imperva, Inc.* | 1,648 | 73,254 | ||||||
Intuit, Inc. | 7,210 | 902,764 | ||||||
Manhattan Associates, Inc.* | 3,914 | 182,745 | ||||||
Microsoft Corp. | 199,408 | 13,651,472 | ||||||
MicroStrategy, Inc., Class A* | 1,030 | 195,875 | ||||||
Monotype Imaging Holdings, Inc.(a) | 1,648 | 33,537 | ||||||
Nuance Communications, Inc.* | 9,064 | 162,155 | ||||||
Oracle Corp. | 74,160 | 3,334,234 | ||||||
Pegasystems, Inc.(a) | 2,678 | 121,983 | ||||||
Progress Software Corp. | 3,090 | 91,835 | ||||||
Proofpoint, Inc.* (a) | 2,472 | 186,315 | ||||||
PTC, Inc.* (a) | 7,416 | 400,835 | ||||||
Qualys, Inc.* | 1,236 | 47,462 | ||||||
RealPage, Inc.* (a) | 206 | 7,632 | ||||||
Red Hat, Inc.* | 3,914 | 344,745 | ||||||
salesforce.com, Inc.* | 12,978 | 1,117,665 | ||||||
ServiceNow, Inc.* | 2,678 | 253,017 | ||||||
Silver Spring Networks, Inc.* | 5,562 | 63,462 |
See Accompanying Notes to the Financial Statements.
68 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Splunk, Inc.* (a) | 1,648 | $ | 105,983 | |||||
SS&C Technologies Holdings, Inc.(a) | 7,004 | 257,327 | ||||||
Symantec Corp. | 14,420 | 456,105 | ||||||
Synchronoss Technologies, Inc.* | 618 | 9,888 | ||||||
Synopsys, Inc.* | 3,708 | 273,280 | ||||||
Take-Two Interactive Software, Inc.* | 5,562 | 349,572 | ||||||
TiVo Corp. | 39,346 | 777,084 | ||||||
Tyler Technologies, Inc.* (a) | 1,648 | 269,596 | ||||||
Ultimate Software Group, Inc. (The)* (a) | 1,442 | 292,250 | ||||||
VASCO Data Security International, Inc.* | 2,678 | 36,153 | ||||||
Verint Systems, Inc.* (a) | 15,038 | 590,993 | ||||||
Workday, Inc., Class A* (a) | 412 | 36,009 | ||||||
31,289,159 | ||||||||
Specialty Retail – 2.7% | ||||||||
Aaron’s, Inc.(a) | 19,364 | 695,942 | ||||||
Abercrombie & Fitch Co., Class A(a) | 9,064 | 108,677 | ||||||
Advance Auto Parts, Inc.(a) | 1,442 | 204,966 | ||||||
American Eagle Outfitters, Inc. | 61,594 | 867,859 | ||||||
Asbury Automotive Group, Inc.* (a) | 8,652 | 529,502 | ||||||
Ascena Retail Group, Inc.* (a) | 86,520 | 338,293 | ||||||
AutoNation, Inc.* (a) | 412 | 17,304 | ||||||
AutoZone, Inc.* | 824 | 570,365 | ||||||
Barnes & Noble, Inc. | 4,120 | 35,226 | ||||||
Bed Bath & Beyond, Inc. | 5,974 | 231,493 | ||||||
Best Buy Co., Inc. | 10,506 | 544,316 | ||||||
Big 5 Sporting Goods Corp. | 618 | 9,517 | ||||||
Boot Barn Holdings, Inc.* (a) | 6,592 | 69,941 | ||||||
Buckle, Inc. (The)(a) | 10,506 | 196,462 | ||||||
Burlington Stores, Inc.* | 4,326 | 427,928 | ||||||
Cabela’s, Inc.* | 1,030 | 56,238 | ||||||
Caleres, Inc. | 12,978 | 374,026 | ||||||
CarMax, Inc.* | 11,124 | 650,754 |
Shares | Value | |||||||
Specialty Retail – (continued) | ||||||||
Cato Corp. (The), Class A | 5,150 | $ | 116,184 | |||||
Chico’s FAS, Inc.(a) | 36,462 | 503,905 | ||||||
Children’s Place, Inc. (The)(a) | 1,854 | 212,839 | ||||||
Citi Trends, Inc. | 2,060 | 38,707 | ||||||
Conn’s, Inc.* (a) | 6,798 | 119,645 | ||||||
Container Store Group, Inc. (The)* | 2,266 | 9,336 | ||||||
CST Brands, Inc. | 5,356 | 258,641 | ||||||
Dick’s Sporting Goods, Inc. | 2,266 | 114,546 | ||||||
DSW, Inc., Class A(a) | 18,952 | 390,790 | ||||||
Express, Inc.* (a) | 23,896 | 206,223 | ||||||
Foot Locker, Inc. | 3,708 | 286,777 | ||||||
GameStop Corp., Class A | 35,638 | 808,626 | ||||||
Gap, Inc. (The)(a) | 9,888 | 259,066 | ||||||
Genesco, Inc.* (a) | 3,708 | 197,636 | ||||||
GNC Holdings, Inc., Class A(a) | 23,072 | 179,500 | ||||||
Group 1 Automotive, Inc.(a) | 9,064 | 624,963 | ||||||
Guess?, Inc. | 5,356 | 59,773 | ||||||
Haverty Furniture Cos., Inc. | 824 | 20,312 | ||||||
Hibbett Sports, Inc.* | 206 | 5,356 | ||||||
Home Depot, Inc. (The) | 31,930 | 4,984,273 | ||||||
L Brands, Inc. | 6,386 | 337,245 | ||||||
Lithia Motors, Inc., Class A(a) | 7,828 | 747,965 | ||||||
Lowe’s Cos., Inc. | 24,102 | 2,045,778 | ||||||
Lumber Liquidators Holdings, Inc.* (a) | 6,798 | 166,891 | ||||||
MarineMax, Inc.* | 2,472 | 50,305 | ||||||
Michael’s Cos., Inc. (The)* | 1,854 | 43,309 | ||||||
Monro Muffler Brake, Inc. | 2,678 | 138,854 | ||||||
Murphy USA, Inc.* (a) | 10,506 | 730,902 | ||||||
Office Depot, Inc. | 172,834 | 858,985 | ||||||
O’Reilly Automotive, Inc.* | 2,472 | 613,427 | ||||||
Party City Holdco, Inc.* (a) | 13,390 | 214,240 | ||||||
Penske Automotive Group, Inc.(a) | 4,326 | 206,393 | ||||||
Pier 1 Imports, Inc. | 38,110 | 256,861 | ||||||
Rent-A-Center, Inc.(a) | 18,746 | 200,395 | ||||||
RH* (a) | 12,772 | 612,673 | ||||||
Ross Stores, Inc. | 11,536 | 749,840 | ||||||
Sally Beauty Holdings, Inc.* (a) | 7,828 | 148,889 | ||||||
Select Comfort Corp.* | 3,708 | 114,577 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 69 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Shoe Carnival, Inc. | 1,648 | $ | 41,810 | |||||
Signet Jewelers Ltd. | 4,120 | 271,261 | ||||||
Sonic Automotive, Inc., Class A(a) | 16,480 | 323,008 | ||||||
Sportsman’s Warehouse Holdings, Inc.* (a) | 6,386 | 26,119 | ||||||
Staples, Inc. | 23,896 | 233,464 | ||||||
Tailored Brands, Inc.(a) | 16,274 | 200,658 | ||||||
Tiffany & Co.(a) | 1,030 | 94,400 | ||||||
TJX Cos., Inc. (The) | 16,480 | 1,295,987 | ||||||
Tractor Supply Co.(a) | 3,914 | 242,316 | ||||||
Ulta Beauty, Inc.* | 1,648 | 463,813 | ||||||
Urban Outfitters, Inc.* (a) | 33,166 | 758,838 | ||||||
Vitamin Shoppe, Inc.* (a) | 5,356 | 103,371 | ||||||
Williams-Sonoma, Inc. | 1,030 | 55,672 | ||||||
27,674,153 | ||||||||
Technology Hardware, Storage & Peripherals – 4.1% | ||||||||
3D Systems Corp.* (a) | 14,832 | 234,791 | ||||||
Apple, Inc. | 245,758 | 35,303,137 | ||||||
Avid Technology, Inc.* | 13,802 | 77,360 | ||||||
CPI Card Group, Inc.(a) | 8,446 | 30,406 | ||||||
Cray, Inc.* (a) | 2,060 | 36,874 | ||||||
Diebold Nixdorf, Inc.(a) | 29,664 | 836,525 | ||||||
Eastman Kodak Co.* (a) | 3,708 | 40,788 | ||||||
Electronics For Imaging, Inc.* (a) | 3,708 | 169,752 | ||||||
Hewlett Packard Enterprise Co. | 77,044 | 1,435,330 | ||||||
HP, Inc. | 65,096 | 1,225,107 | ||||||
NCR Corp.* | 9,888 | 407,880 | ||||||
NetApp, Inc. | 12,566 | 500,755 | ||||||
Pure Storage, Inc., Class A* | 16,686 | 177,038 | ||||||
Seagate Technology plc | 10,918 | 459,975 | ||||||
Super Micro Computer, Inc.* | 3,090 | 75,396 | ||||||
Western Digital Corp. | 11,536 | 1,027,512 | ||||||
Xerox Corp. | 44,290 | 318,445 | ||||||
42,357,071 | ||||||||
Textiles, Apparel & Luxury Goods – 0.8% | ||||||||
Carter’s, Inc. | 1,442 | 132,722 | ||||||
Coach, Inc.(a) | 6,798 | 267,773 |
Shares | Value | |||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Columbia Sportswear Co.(a) | 2,472 | $ | 139,965 | |||||
Deckers Outdoor Corp.* | 10,712 | 638,328 | ||||||
Fossil Group, Inc.* (a) | 21,218 | 366,010 | ||||||
G-III Apparel Group Ltd.* (a) | 12,978 | 307,579 | ||||||
Hanesbrands, Inc.(a) | 5,356 | 116,814 | ||||||
Iconix Brand Group, Inc.* | 18,540 | 129,780 | ||||||
Kate Spade & Co.* | 5,974 | 103,948 | ||||||
Lululemon Athletica, Inc.* | 2,884 | 149,968 | ||||||
Michael Kors Holdings Ltd.* | 206 | 7,690 | ||||||
Movado Group, Inc.(a) | 3,296 | 77,126 | ||||||
NIKE, Inc., Class B | 42,024 | 2,328,550 | ||||||
Oxford Industries, Inc. | 618 | 35,832 | ||||||
Perry Ellis International, Inc.* | 1,442 | 29,590 | ||||||
PVH Corp. | 5,356 | 541,117 | ||||||
Ralph Lauren Corp. | 3,914 | 315,938 | ||||||
Sequential Brands Group, Inc.* | 206 | 694 | ||||||
Skechers USA, Inc., Class A* | 44,702 | 1,128,725 | ||||||
Steven Madden Ltd.* | 3,502 | 133,251 | ||||||
Under Armour, Inc., Class A* (a) | 1,648 | 35,415 | ||||||
Under Armour, Inc., Class C* (a) | 1,648 | 31,988 | ||||||
Unifi, Inc.* (a) | 824 | 23,130 | ||||||
VF Corp. | 10,300 | 562,689 | ||||||
Wolverine World Wide, Inc.(a) | 29,870 | 720,166 | ||||||
8,324,788 | ||||||||
Thrifts & Mortgage Finance – 0.8% | ||||||||
Astoria Financial Corp. | 13,596 | 277,223 | ||||||
Beneficial Bancorp, Inc.(a) | 4,532 | 72,512 | ||||||
BofI Holding, Inc.* (a) | 18,540 | 442,921 | ||||||
Capitol Federal Financial, Inc.(a) | 1,030 | 15,069 | ||||||
Dime Community Bancshares, Inc.(a) | 14,214 | 276,462 | ||||||
Essent Group Ltd.* (a) | 16,892 | 625,173 | ||||||
EverBank Financial Corp. | 25,132 | 490,074 | ||||||
Federal Agricultural Mortgage Corp., Class C | 4,120 | 235,046 | ||||||
Flagstar Bancorp, Inc.* | 7,622 | 222,867 | ||||||
HomeStreet, Inc.* (a) | 5,356 | 139,256 |
See Accompanying Notes to the Financial Statements.
70 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Thrifts & Mortgage Finance – (continued) | ||||||||
LendingTree, Inc.* (a) | 412 | $ | 58,051 | |||||
MGIC Investment Corp.* | 120,510 | 1,270,175 | ||||||
Nationstar Mortgage Holdings, Inc.* (a) | 18,128 | 292,042 | ||||||
New York Community Bancorp, Inc. | 24,720 | 328,529 | ||||||
Northfield Bancorp, Inc. | 4,120 | 75,726 | ||||||
Northwest Bancshares, Inc. | 1,648 | 26,599 | ||||||
Ocwen Financial Corp.* (a) | 41,200 | 94,348 | ||||||
Oritani Financial Corp.(a) | 824 | 13,967 | ||||||
PHH Corp.* | 7,210 | 93,009 | ||||||
Provident Financial Services, Inc. | 12,360 | 317,528 | ||||||
Radian Group, Inc. | 73,748 | 1,244,866 | ||||||
TFS Financial Corp. | 2,266 | 37,480 | ||||||
TrustCo Bank Corp.(a) | 15,656 | 124,465 | ||||||
United Financial Bancorp, Inc.(a) | 2,266 | 39,134 | ||||||
Walker & Dunlop, Inc.* | 9,064 | 406,520 | ||||||
Washington Federal, Inc. | 28,222 | 951,081 | ||||||
WSFS Financial Corp. | 4,326 | 204,187 | ||||||
8,374,310 | ||||||||
Tobacco – 1.0% | ||||||||
Altria Group, Inc. | 51,706 | 3,711,457 | ||||||
Philip Morris International, Inc. | 36,668 | 4,064,281 | ||||||
Reynolds American, Inc. | 22,042 | 1,421,709 | ||||||
Universal Corp. | 8,034 | 590,097 | ||||||
Vector Group Ltd. | 10,589 | 229,993 | ||||||
10,017,537 | ||||||||
Trading Companies & Distributors – 0.7% | ||||||||
Air Lease Corp. | 29,458 | 1,123,528 | ||||||
Aircastle Ltd. | 22,042 | 520,632 | ||||||
Applied Industrial Technologies, Inc.(a) | 4,944 | 316,416 | ||||||
Beacon Roofing Supply, Inc.* (a) | 5,356 | 265,497 | ||||||
DXP Enterprises, Inc.* | 3,296 | 120,238 | ||||||
Fastenal Co. | 1,442 | 64,429 | ||||||
GATX Corp.(a) | 15,862 | 950,134 |
Shares | Value | |||||||
Trading Companies & Distributors – (continued) | ||||||||
H&E Equipment Services, Inc. | 4,326 | $ | 91,365 | |||||
HD Supply Holdings, Inc.* | 1,648 | 66,414 | ||||||
Herc Holdings, Inc.* | 1,484 | 67,477 | ||||||
Kaman Corp.(a) | 5,150 | 247,251 | ||||||
MRC Global, Inc.* | 23,278 | 424,358 | ||||||
MSC Industrial Direct Co., Inc., Class A | 3,296 | 295,091 | ||||||
NOW, Inc.* | 26,162 | 445,016 | ||||||
Rush Enterprises, Inc., Class A* | 10,300 | 388,825 | ||||||
Triton International Ltd. | 5,562 | 170,253 | ||||||
United Rentals, Inc.* | 3,914 | 429,209 | ||||||
Univar, Inc.* | 17,716 | 528,823 | ||||||
Veritiv Corp.* | 824 | 42,560 | ||||||
Watsco, Inc. | 2,060 | 285,928 | ||||||
WESCO International, Inc.* | 11,124 | 678,008 | ||||||
WW Grainger, Inc. | 412 | 79,392 | ||||||
7,600,844 | ||||||||
Transportation Infrastructure – 0.0%(c) | ||||||||
Macquarie Infrastructure Corp. | 412 | 33,524 | ||||||
Water Utilities – 0.1% | ||||||||
American States Water Co. | 3,914 | 174,251 | ||||||
American Water Works Co., Inc. | 3,296 | 262,889 | ||||||
Aqua America, Inc. | 1,854 | 61,349 | ||||||
California Water Service Group(a) | 3,914 | 139,730 | ||||||
Connecticut Water Service, Inc.(a) | 412 | 22,112 | ||||||
SJW Group | 618 | 30,183 | ||||||
690,514 | ||||||||
Wireless Telecommunication Services – 0.1% | ||||||||
Boingo Wireless, Inc.* (a) | 3,914 | 55,931 | ||||||
NII Holdings, Inc.* (a) | 53,972 | 46,567 | ||||||
Shenandoah Telecommunications Co.(a) | 6,798 | 217,536 | ||||||
Spok Holdings, Inc. | 2,266 | 40,675 | ||||||
Sprint Corp.* (a) | 34,814 | 314,370 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 71 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Wireless Telecommunication Services – (continued) | ||||||||
Telephone & Data Systems, Inc. | 8,446 | $ | 231,927 | |||||
T-Mobile US, Inc.* | 5,974 | 401,871 | ||||||
1,308,877 | ||||||||
Total Common Stocks (Cost $734,690,205) | 1,026,298,454 | |||||||
No. of Rights | ||||||||
RIGHTS – 0.0%(c) | ||||||||
Biotechnology – 0.0%(c) | ||||||||
Dyax Corp., CVR* (d) | 7,175 | 13,561 | ||||||
Media – 0.0%(c) | ||||||||
Media General, Inc., CVR* (d) | 22,261 | 37,843 | ||||||
Total Rights (Cost $–) | 51,404 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(e) – 11.1% | ||||||||
CERTIFICATES OF DEPOSIT – 4.6% | ||||||||
Bank of Montreal, Chicago | $ | 4,000,000 | 4,000,572 | |||||
Bank of Tokyo UFJ Ltd., New York | 1,000,000 | 1,000,303 | ||||||
Credit Suisse, New York | 5,000,000 | 5,004,600 | ||||||
HSBC, New York | 2,500,000 | 2,501,475 | ||||||
KBC Bank NV, Brussels | 3,000,000 | 2,999,907 | ||||||
Landesbank Baden-Wurttemberg, London | 1,500,000 | 1,499,236 | ||||||
Mizuho Bank Ltd., | 4,000,000 | 4,001,172 | ||||||
Norinchukin Bank, London | 5,000,000 | 4,992,175 |
Principal Amount | Value | |||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Standard Chartered, London | $ | 3,000,000 | $ | 2,996,337 | ||||
Sumitomo Mitsui Banking Corp., New York | 2,000,000 | 2,000,062 | ||||||
Sumitomo Mitsui Trust Bank Ltd., New York | 2,500,000 | 2,499,815 | ||||||
Swedbank, New York | 5,000,000 | 5,000,000 | ||||||
The Chiba Bank Ltd., | 1,000,000 | 1,000,000 | ||||||
Toronto Dominion, | 4,000,000 | 4,000,195 | ||||||
Wells Fargo Bank | 2,000,000 | 2,000,082 | ||||||
1.41%, 7/27/2017 | 3,000,000 | 3,002,901 | ||||||
Total Certificates of Deposit (Cost $48,489,330) | 48,498,832 | |||||||
COMMERCIAL PAPER – 1.0% | ||||||||
DBS Bank Ltd. | 4,000,000 | 3,998,222 | ||||||
ING (US) Funding LLC | 1,200,000 | 1,198,557 | ||||||
Macquarie Bank Ltd. | 5,000,000 | 4,993,132 | ||||||
Total Commercial Paper (Cost $10,189,911) | 10,189,911 | |||||||
FUNDING AGREEMENT – 0.3% | ||||||||
United of Omaha Life Insurance | 3,000,000 | 3,000,000 | ||||||
See Accompanying Notes to the Financial Statements.
72 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
MASTER DEMAND NOTE – 0.4% | ||||||||
Natixis Financial Products LLC 1.14%, 5/1/2017 | $ | 4,000,000 | $ | 4,000,000 | ||||
REPURCHASE AGREEMENTS – 4.8% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $9,600,872, collateralized by various Common Stocks; total market value $10,560,002 | 9,600,000 | 9,600,000 | ||||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $12,215,375, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $12,458,820 | 12,214,530 | 12,214,530 | ||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $10,701,159, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $11,225,956 | 10,700,000 | 10,700,000 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Mizuho Securities USA, Inc., 0.85%, dated 4/28/2017, due 5/1/2017, repurchase price $11,000,779, collateralized by various U.S. Government Agency Mortgage Securities, ranging from 3.00% – 3.50%, maturing 1/20/2047 – 3/20/2047; total market value $11,220,000 | $ | 11,000,000 | $ | 11,000,000 | ||||
ML Pierce Fenner & Smith, Inc., 1.46%, dated 4/28/2017, due 7/31/2017, repurchase price $6,022,874, collateralized by various Common Stocks; total market value $6,600,001 | 6,000,000 | 6,000,000 | ||||||
Total Repurchase Agreements (Cost $49,514,530) | 49,514,530 | |||||||
Total Securities Lending Reinvestments (Cost $115,193,771) | 115,203,273 | |||||||
Total Investments – 110.1% (Cost $849,883,976) | 1,141,553,131 | |||||||
Liabilities Less Other Assets – (10.1%) |
| (104,476,274 | ) | |||||
NET ASSETS – 100.0% | $ | 1,037,076,857 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $113,193,722, collateralized in the form of cash with a value of $115,207,632 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $1,929,793 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.13%, and maturity dates ranging from 5/4/2017 – 11/15/2046 and $186,961 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $117,324,386. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 73 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
(b) | Investment in affiliated company. Northern Trust Investments, Inc., the Investment Adviser of the Fund, is a subsidiary of Northern Trust Corporation. |
(c) | Represents less than 0.05% of net assets. |
(d) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $51,404, which represents approximately 0.00% of net assets of the Fund. |
(e) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $115,203,273. |
Percentages shown are based on Net Assets.
Abbreviations:
CVR – Contingent Value Rights
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 299,583,431 | ||
Aggregate gross unrealized depreciation | (7,677,743 | ) | ||
Net unrealized appreciation | $ | 291,905,688 | ||
Federal income tax cost of investments | $ | 849,647,443 |
Investment in a company which was affiliated for the period ending April 30, 2017, was as follows:
Security | Value October 31, 2016 | Purchases at Cost | Sales at Cost | Value April 30, 2017 | Dividend Income | Realized Gain | ||||||||||||||||||
Northern Trust Corp. | $ | 476,524 | $ | 57,211 | $ | 2,832 | $ | 645,660 | $ | 5,227 | $ | 3,259 |
Futures Contracts
FlexShares® Morningstar US Market Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation | |||||||||||||
E-mini S&P 500® Index Futures Contracts | 58 | 06/16/2017 | $ | 6,903,450 | $ | 63,714 | ||||||||||
E-mini S&P MidCap 400® Index Futures Contracts | 5 | 06/16/2017 | 865,000 | 12,300 | ||||||||||||
Russell 2000® Mini Index Futures Contracts | 40 | 06/16/2017 | 2,796,800 | 69,118 | ||||||||||||
$ | 145,132 |
See Accompanying Notes to the Financial Statements.
74 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 98.4% | ||||||||
Aerospace & Defense – 0.8% | ||||||||
Airbus SE(a) | 15,906 | $ | 1,285,726 | |||||
BAE Systems plc | 79,332 | 643,526 | ||||||
Bombardier, Inc., Class B* | 40,535 | 62,553 | ||||||
CAE, Inc. | 7,384 | 112,599 | ||||||
Cobham plc(a) | 111,084 | 190,422 | ||||||
Dassault Aviation SA | 55 | 75,144 | ||||||
Elbit Systems Ltd. | 412 | 49,113 | ||||||
Kongsberg Gruppen ASA | 2,303 | 36,024 | ||||||
KuangChi Science Ltd.* | 55,000 | 21,922 | ||||||
Leonardo SpA* | 16,043 | 252,093 | ||||||
LISI | 14,718 | 576,978 | ||||||
MacDonald Dettwiler & Associates Ltd. | 770 | 37,957 | ||||||
Meggitt plc | 30,894 | 184,857 | ||||||
MTU Aero Engines AG* | 1,290 | 184,935 | ||||||
QinetiQ Group plc | 19,310 | 73,398 | ||||||
Rolls-Royce Holdings plc* (b) | 3,416,094 | 4,420 | ||||||
Rolls-Royce Holdings plc* | 48,114 | 505,450 | ||||||
Saab AB, Class B | 1,995 | 98,952 | ||||||
Safran SA | 8,778 | 726,660 | ||||||
Senior plc | 296,351 | 822,018 | ||||||
Singapore Technologies Engineering Ltd. | 40,700 | 110,362 | ||||||
Thales SA | 2,574 | 270,541 | ||||||
Ultra Electronics Holdings plc | 2,754 | 74,538 | ||||||
Zodiac Aerospace | 6,294 | 152,772 | ||||||
6,552,960 | ||||||||
Air Freight & Logistics – 0.5% | ||||||||
Bollore SA(a) | 19,098 | 77,676 | ||||||
Bollore SA* | 128 | 511 | ||||||
bpost SA | 1,815 | 43,482 | ||||||
CTT-Correios de Portugal SA | 6,883 | 39,268 | ||||||
CWT Ltd.* (a) | 215,900 | 353,732 | ||||||
Deutsche Post AG (Registered) | 24,288 | 872,798 | ||||||
Freightways Ltd. | 12,987 | 66,782 | ||||||
ID Logistics Group* | 97 | 14,698 | ||||||
Kerry Logistics Network Ltd. | 26,000 | 36,639 | ||||||
Kintetsu World Express, Inc. | 28,000 | 434,305 | ||||||
Konoike Transport Co. Ltd. | 24,500 | 333,202 |
Shares | Value | |||||||
Air Freight & Logistics – (continued) | ||||||||
Mainfreight Ltd. | 3,192 | $ | 48,431 | |||||
Oesterreichische Post AG* (a) | 670 | 28,436 | ||||||
Panalpina Welttransport Holding AG (Registered) | 275 | 36,383 | ||||||
PostNL NV | 295,614 | 1,463,720 | ||||||
Royal Mail plc | 32,802 | 170,811 | ||||||
Singapore Post Ltd.(a) | 38,000 | 37,519 | ||||||
Yamato Holdings Co. Ltd. | 9,000 | 194,460 | ||||||
Yusen Logistics Co. Ltd. | 14,300 | 136,111 | ||||||
4,388,964 | ||||||||
Airlines – 0.4% | ||||||||
Air Canada* | 12,700 | 120,656 | ||||||
Air France-KLM* (a) | 106,329 | 893,297 | ||||||
Air New Zealand Ltd. | 25,676 | 44,951 | ||||||
ANA Holdings, Inc. | 35,000 | 105,342 | ||||||
Cathay Pacific Airways Ltd.(a) | 27,000 | 38,881 | ||||||
Chorus Aviation, Inc. | 89,166 | 483,882 | ||||||
Deutsche Lufthansa AG (Registered)* (a) | 11,220 | 193,533 | ||||||
easyJet plc(a) | 12,279 | 185,548 | ||||||
El Al Israel Airlines | 194,689 | 152,158 | ||||||
Exchange Income Corp. | 1,148 | 29,428 | ||||||
Finnair OYJ | 41,184 | 214,819 | ||||||
International Consolidated Airlines Group SA, DI | 38,412 | 278,295 | ||||||
Japan Airlines Co. Ltd. | 7,100 | 224,204 | ||||||
Norwegian Air Shuttle ASA* | 1,076 | 30,610 | ||||||
Qantas Airways Ltd. | 42,515 | 134,810 | ||||||
SAS AB* (a) | 95,964 | 158,228 | ||||||
Singapore Airlines Ltd. | 24,200 | 177,470 | ||||||
Virgin Australia Holdings Ltd.* | 356,146 | 49,274 | ||||||
WestJet Airlines Ltd. | 5,880 | 97,104 | ||||||
Wizz Air Holdings plc* (c) | 2,172 | 49,597 | ||||||
3,662,087 | ||||||||
Auto Components – 2.6% | ||||||||
Aisan Industry Co. Ltd. | 27,208 | 244,328 | ||||||
Aisin Seiki Co. Ltd. | 7,400 | 361,801 | ||||||
ARB Corp. Ltd.(a) | 3,517 | 40,742 | ||||||
Autoneum Holding AG | 165 | 48,732 | ||||||
Brembo SpA | 715 | 56,176 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 75 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Bridgestone Corp. | 28,100 | $ | 1,171,695 | |||||
CIE Automotive SA | 3,217 | 69,170 | ||||||
Cie Generale des Etablissements Michelin | 8,052 | 1,051,749 | ||||||
Cie Plastic Omnium SA | 2,503 | 97,878 | ||||||
Continental AG | 4,488 | 1,004,321 | ||||||
Daido Metal Co. Ltd. | 26,400 | 235,414 | ||||||
Daikyonishikawa Corp. | 34,604 | 439,263 | ||||||
Denso Corp. | 24,200 | 1,041,857 | ||||||
Dometic Group AB(c) | 4,308 | 32,110 | ||||||
Eagle Industry Co. Ltd. | 17,700 | 250,248 | ||||||
ElringKlinger AG(a) | 22,651 | 452,001 | ||||||
Exedy Corp. | 22,600 | 616,345 | ||||||
Faurecia | 3,573 | 174,386 | ||||||
FCC Co. Ltd. | 25,000 | 476,361 | ||||||
GKN plc | 74,250 | 344,763 | ||||||
G-Tekt Corp. | 15,000 | 264,421 | ||||||
Hella KGaA Hueck & Co. | 1,320 | 65,280 | ||||||
HI-LEX Corp. | 3,164 | 78,170 | ||||||
Hybrid Kinetic Group Ltd.* (b) | 884,000 | 22,164 | ||||||
Keihin Corp. | 29,200 | 458,681 | ||||||
Koito Manufacturing Co. Ltd. | 2,000 | 103,167 | ||||||
KYB Corp. | 160,000 | 789,450 | ||||||
Leoni AG | 23,536 | 1,278,145 | ||||||
Linamar Corp. | 1,760 | 74,710 | ||||||
Magna International, Inc. | 16,506 | 688,344 | ||||||
Mitsuba Corp. | 35,000 | 661,882 | ||||||
Musashi Seimitsu Industry Co. Ltd. | 15,000 | 368,171 | ||||||
NGK Spark Plug Co. Ltd. | 7,200 | 155,730 | ||||||
NHK Spring Co. Ltd. | 7,000 | 78,057 | ||||||
Nifco, Inc. | 1,200 | 59,855 | ||||||
Nippon Seiki Co. Ltd. | 38,000 | 790,885 | ||||||
Nissin Kogyo Co. Ltd. | 28,500 | 489,360 | ||||||
NOK Corp. | 3,800 | 90,372 | ||||||
Nokian Renkaat OYJ | 2,145 | 92,264 | ||||||
Pacific Industrial Co. Ltd. | 39,600 | 555,970 | ||||||
Piolax, Inc. | 19,800 | 455,078 | ||||||
Schaeffler AG (Preference) | 2,860 | 49,254 | ||||||
Showa Corp. | 37,000 | 315,331 | ||||||
Stanley Electric Co. Ltd. | 3,800 | 111,133 | ||||||
Sumitomo Electric Industries Ltd. | 33,400 | 544,282 |
Shares | Value | |||||||
Auto Components – (continued) | ||||||||
Sumitomo Riko Co. Ltd. | 30,900 | $ | 314,627 | |||||
Sumitomo Rubber Industries Ltd. | 9,500 | 170,790 | ||||||
Tachi-S Co. Ltd. | 23,700 | 454,142 | ||||||
Tokai Rika Co. Ltd. | 2,600 | 48,305 | ||||||
Topre Corp. | 31,800 | 846,992 | ||||||
Toyo Tire & Rubber Co. Ltd. | 4,500 | 78,963 | ||||||
Toyoda Gosei Co. Ltd. | 6,800 | 180,386 | ||||||
Toyota Boshoku Corp. | 2,600 | 54,930 | ||||||
Toyota Industries Corp. | 8,000 | 397,596 | ||||||
TPR Co. Ltd. | 20,700 | 697,304 | ||||||
TS Tech Co. Ltd. | 1,100 | 28,845 | ||||||
Unipres Corp. | 28,000 | 592,052 | ||||||
Valeo SA | 6,204 | 445,886 | ||||||
Xinyi Glass Holdings Ltd.* | 120,000 | 106,460 | ||||||
Yokohama Rubber Co. Ltd. (The) | 8,000 | 156,813 | ||||||
21,423,587 | ||||||||
Automobiles – 2.7% | ||||||||
Bayerische Motoren Werke AG | 14,457 | 1,379,870 | ||||||
Bayerische Motoren Werke AG (Preference) | 2,310 | 189,868 | ||||||
Daimler AG (Registered) | 43,890 | 3,269,111 | ||||||
Ferrari NV | 3,234 | 243,171 | ||||||
Fiat Chrysler Automobiles NV* | 45,918 | 519,525 | ||||||
Honda Motor Co. Ltd. | 83,200 | 2,412,330 | ||||||
Isuzu Motors Ltd. | 27,600 | 374,372 | ||||||
Mazda Motor Corp. | 24,500 | 359,137 | ||||||
Mitsubishi Motors Corp. | 34,300 | 219,394 | ||||||
Nissan Motor Co. Ltd. | 112,200 | 1,065,432 | ||||||
Nissan Shatai Co. Ltd. | 1,000 | 9,402 | ||||||
Peugeot SA* | 20,658 | 432,701 | ||||||
Porsche Automobil Holding SE (Preference) | 6,378 | 373,033 | ||||||
Renault SA | 8,583 | 800,150 | ||||||
Subaru Corp. | 28,400 | 1,073,121 | ||||||
Suzuki Motor Corp. | 13,900 | 580,092 | ||||||
Toyota Motor Corp. | 125,438 | 6,791,229 | ||||||
Volkswagen AG | 1,122 | 180,766 | ||||||
Volkswagen AG (Preference) | 7,986 | 1,265,754 | ||||||
Yamaha Motor Co. Ltd. | 15,500 | 367,233 | ||||||
21,905,691 |
See Accompanying Notes to the Financial Statements.
76 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Banks – 13.4% | ||||||||
77 Bank Ltd. (The) | 11,000 | $ | 47,564 | |||||
ABN AMRO Group NV, CVA(c) | 7,260 | 190,529 | ||||||
Aichi Bank Ltd. (The) | 400 | 22,069 | ||||||
Akita Bank Ltd. (The) | 16,000 | 50,812 | ||||||
Aktia Bank OYJ(a) | 28,128 | 277,201 | ||||||
Aldermore Group plc* | 145,596 | 486,735 | ||||||
Aomori Bank Ltd. (The) | 15,000 | 52,211 | ||||||
Aozora Bank Ltd. | 35,000 | 127,478 | ||||||
Australia & New Zealand Banking Group Ltd. | 129,136 | 3,163,776 | ||||||
Awa Bank Ltd. (The) | 6,000 | 39,616 | ||||||
Banca Monte dei Paschi di Siena SpA* (b) | 18,688 | 306,882 | ||||||
Banca Popolare di Sondrio SCPA | 42,721 | 159,009 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 300,080 | 2,401,448 | ||||||
Banco BPM SpA* | 52,455 | 152,513 | ||||||
Banco Comercial Portugues SA, Class R* | 6,892,560 | 1,537,158 | ||||||
Banco de Sabadell SA | 231,330 | 444,867 | ||||||
Banco Espirito Santo SA (Registered)* (b) | 48,647 | 530 | ||||||
Banco Popular Espanol SA* (a) | 167,290 | 117,318 | ||||||
Banco Santander SA | 644,544 | 4,202,133 | ||||||
Bank Hapoalim BM | 46,480 | 290,327 | ||||||
Bank Leumi Le-Israel BM* | 63,031 | 295,152 | ||||||
Bank of East Asia Ltd. (The)(a) | 43,038 | 178,183 | ||||||
Bank of Ireland* | 1,230,240 | 309,464 | ||||||
Bank of Iwate Ltd. (The) | 12,300 | 503,167 | ||||||
Bank of Kyoto Ltd. (The) | 5,000 | 39,562 | ||||||
Bank of Montreal(a) | 29,052 | 2,053,804 | ||||||
Bank of Nagoya Ltd. (The) | 999 | 36,655 | ||||||
Bank of Nova Scotia (The) | 53,460 | 2,966,829 | ||||||
Bank of Okinawa Ltd. (The) | 17,440 | 672,755 | ||||||
Bank of Queensland Ltd. | 17,185 | 153,836 | ||||||
Bank of the Ryukyus Ltd. | 61 | 841 | ||||||
Bankia SA | 202,092 | 245,156 | ||||||
Bankinter SA | 19,915 | 175,291 | ||||||
Banque Cantonale Vaudoise (Registered)* (a) | 50 | 36,215 | ||||||
Barclays plc | 695,880 | 1,910,876 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Bendigo & Adelaide Bank Ltd. | 21,649 | $ | 199,463 | |||||
Berner Kantonalbank AG (Registered) | 259 | 49,175 | ||||||
BGEO Group plc | 28,675 | 1,335,538 | ||||||
BNP Paribas SA | 50,028 | 3,529,084 | ||||||
BPER Banca | 19,506 | 106,630 | ||||||
CaixaBank SA | 146,743 | 666,189 | ||||||
Canadian Imperial Bank of Commerce | 17,812 | 1,436,241 | ||||||
Canadian Western Bank | 3,245 | 63,675 | ||||||
Chiba Bank Ltd. (The) | 28,000 | 187,387 | ||||||
Chugoku Bank Ltd. (The) | 6,500 | 96,447 | ||||||
Collector AB* | 896 | 9,891 | ||||||
comdirect bank AG | 411 | 4,285 | ||||||
Commerzbank AG* | 48,378 | 473,868 | ||||||
Commonwealth Bank of Australia | 43,824 | 2,864,428 | ||||||
Concordia Financial Group Ltd. | 56,021 | 257,414 | ||||||
Credit Agricole SA | 55,824 | 829,777 | ||||||
Credito Emiliano SpA | 55,268 | 385,780 | ||||||
CYBG plc* (a) | 19,250 | 69,982 | ||||||
Dah Sing Banking Group Ltd.(a) | 24,640 | 49,549 | ||||||
Dah Sing Financial Holdings Ltd. | 5,340 | 40,509 | ||||||
Daishi Bank Ltd. (The) | 8,000 | 32,080 | ||||||
Danske Bank A/S | 33,924 | 1,231,830 | ||||||
DBS Group Holdings Ltd.(a) | 76,997 | 1,065,960 | ||||||
DNB ASA | 42,372 | 663,291 | ||||||
Erste Group Bank AG* | 13,464 | 481,194 | ||||||
FIBI Holdings Ltd. | 5,441 | 114,825 | ||||||
FinecoBank Banca Fineco SpA | 4,895 | 34,808 | ||||||
Fukui Bank Ltd. (The) | 7,000 | 17,206 | ||||||
Fukuoka Financial Group, Inc. | 30,000 | 136,718 | ||||||
Gunma Bank Ltd. (The) | 14,300 | 76,715 | ||||||
Hachijuni Bank Ltd. (The) | 15,000 | 88,544 | ||||||
Hang Seng Bank Ltd. | 19,800 | 401,471 | ||||||
Heartland Bank Ltd. | 319,973 | 364,665 | ||||||
Hiroshima Bank Ltd. (The) | 26,000 | 112,192 | ||||||
Hokkoku Bank Ltd. (The) | 17,000 | 63,748 | ||||||
Hokuetsu Bank Ltd. (The) | 2,800 | 68,575 | ||||||
Hokuhoku Financial Group, Inc. | 4,700 | 73,787 | ||||||
HSBC Holdings plc | 905,843 | 7,459,362 | ||||||
Hyakugo Bank Ltd. (The) | 170,000 | 686,283 | ||||||
Hyakujushi Bank Ltd. (The) | 10,000 | 33,103 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 77 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
ING Groep NV | 171,072 | $ | 2,784,087 | |||||
Intesa Sanpaolo SpA | 650,430 | 1,893,956 | ||||||
Intesa Sanpaolo SpA (Retirement Savings Plan) | 22,267 | 60,862 | ||||||
Israel Discount Bank Ltd., Class A* | 32,350 | 78,378 | ||||||
Iyo Bank Ltd. (The) | 11,500 | 81,605 | ||||||
Juroku Bank Ltd. (The) | 283,000 | 898,735 | ||||||
Jyske Bank A/S (Registered) | 3,234 | 172,785 | ||||||
Kansai Urban Banking Corp. | 400 | 4,977 | ||||||
KBC Group NV | 14,982 | 1,081,335 | ||||||
Keiyo Bank Ltd. (The) | 203,000 | 883,242 | ||||||
Kiyo Bank Ltd. (The) | 53,200 | 830,430 | ||||||
Kyushu Financial Group, Inc. | 11,170 | 69,543 | ||||||
Laurentian Bank of Canada | 22,724 | 928,039 | ||||||
Liberbank SA* | 287,265 | 383,827 | ||||||
Liechtensteinische Landesbank AG | 9,049 | 447,246 | ||||||
Lloyds Banking Group plc | 2,825,328 | 2,529,445 | ||||||
Luzerner Kantonalbank AG (Registered) | 55 | 23,758 | ||||||
Mebuki Financial Group, Inc. | 59,410 | 232,907 | ||||||
Mediobanca SpA | 26,796 | 257,509 | ||||||
Metro Bank plc* | 1,540 | 70,311 | ||||||
Minato Bank Ltd. (The) | 2,900 | 54,998 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 630,400 | 4,010,762 | ||||||
Miyazaki Bank Ltd. (The) | 132,000 | 404,988 | ||||||
Mizrahi Tefahot Bank Ltd. | 4,192 | 67,748 | ||||||
Mizuho Financial Group, Inc. | 1,119,000 | 2,043,854 | ||||||
Musashino Bank Ltd. (The) | 23,000 | 668,521 | ||||||
Nanto Bank Ltd. (The) | 2,346 | 88,709 | ||||||
National Australia Bank Ltd. | 117,348 | 2,983,796 | ||||||
National Bank of Canada | 14,784 | 573,606 | ||||||
Natixis SA | 39,294 | 273,295 | ||||||
Nordax Group AB(c) | 2,128 | 10,839 | ||||||
Nordea Bank AB | 139,671 | 1,719,309 | ||||||
North Pacific Bank Ltd. | 22,900 | 87,310 | ||||||
Ogaki Kyoritsu Bank Ltd. (The) | 245,000 | 714,318 | ||||||
Oita Bank Ltd. (The) | 6,000 | 23,199 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 169,603 | 1,189,175 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Permanent TSB Group Holdings plc* | 82,698 | $ | 220,632 | |||||
Raiffeisen Bank International AG* | 5,005 | 114,073 | ||||||
Resona Holdings, Inc. | 93,900 | 522,107 | ||||||
Ringkjoebing Landbobank A/S | 220 | 53,085 | ||||||
Royal Bank of Canada | 65,934 | 4,507,314 | ||||||
Royal Bank of Scotland Group plc* | 147,840 | 507,625 | ||||||
San-In Godo Bank Ltd. (The) | 112,700 | 915,997 | ||||||
Senshu Ikeda Holdings, Inc. | 192,400 | 811,232 | ||||||
Seven Bank Ltd.(a) | 13,400 | 44,959 | ||||||
Shawbrook Group plc* (c) | 99,813 | 441,635 | ||||||
Shiga Bank Ltd. (The) | 5,000 | 26,106 | ||||||
Shikoku Bank Ltd. (The) | 7,000 | 20,158 | ||||||
Shinsei Bank Ltd. | 86,000 | 160,474 | ||||||
Shizuoka Bank Ltd. (The) | 14,000 | 118,059 | ||||||
Skandiabanken ASA* (c) | 58,212 | 521,540 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 68,930 | 794,017 | ||||||
Skandinaviska Enskilda Banken AB, Class C | 7,040 | 81,015 | ||||||
Societe Generale SA | 33,132 | 1,811,531 | ||||||
Spar Nord Bank A/S | 63,632 | 721,122 | ||||||
SpareBank 1 Nord Norge | 69,335 | 459,320 | ||||||
SpareBank 1 SMN | 91,146 | 760,747 | ||||||
SpareBank 1 SR-Bank ASA | 7,150 | 56,547 | ||||||
St Galler Kantonalbank AG (Registered)* | 110 | 47,737 | ||||||
Standard Chartered plc* | 68,574 | 639,831 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 61,400 | 2,271,585 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 16,700 | 571,848 | ||||||
Suruga Bank Ltd. | 4,700 | 98,200 | ||||||
Svenska Handelsbanken AB, Class A(a) | 40,260 | 571,518 | ||||||
Swedbank AB, Class A | 28,182 | 668,045 | ||||||
Sydbank A/S | 4,884 | 177,631 | ||||||
TBC Bank Group plc* | 25,424 | 534,500 | ||||||
Tochigi Bank Ltd. (The) | 5,000 | 23,863 | ||||||
Toho Bank Ltd. (The) | 22,732 | 83,407 | ||||||
Tokyo TY Financial Group, Inc. | 1,200 | 34,879 | ||||||
TOMONY Holdings, Inc. | 109,100 | 579,413 |
See Accompanying Notes to the Financial Statements.
78 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Toronto-Dominion Bank (The) | 47,256 | $ | 2,219,888 | |||||
UniCredit SpA* | 91,576 | 1,489,842 | ||||||
Unione di Banche Italiane SpA | 36,322 | 152,911 | ||||||
United Overseas Bank Ltd.(a) | 60,539 | 944,230 | ||||||
Valiant Holding AG | 11,038 | 1,266,301 | ||||||
Van Lanschot NV, CVA | 26,598 | 722,649 | ||||||
Virgin Money Holdings UK plc | 164,959 | 677,168 | ||||||
Walliser Kantonalbank (Registered) | 3,239 | 271,205 | ||||||
Westpac Banking Corp. | 85,932 | 2,253,104 | ||||||
Yamagata Bank Ltd. (The) | 11,000 | 49,242 | ||||||
Yamaguchi Financial Group, | 8,000 | 88,562 | ||||||
Yamanashi Chuo Bank Ltd. (The) | 17,000 | 75,034 | ||||||
Zuger Kantonalbank AG | 4 | 21,438 | ||||||
108,340,361 | ||||||||
Beverages – 1.1% | ||||||||
A.G. Barr plc | 4,785 | 38,444 | ||||||
Anheuser-Busch InBev SA/NV(a) | 22,176 | 2,496,961 | ||||||
Asahi Group Holdings Ltd. | 14,000 | 528,124 | ||||||
Britvic plc | 16,720 | 143,849 | ||||||
C&C Group plc | 16,797 | 69,268 | ||||||
Carlsberg A/S, Class B | 2,857 | 285,081 | ||||||
Coca-Cola Amatil Ltd. | 11,766 | 82,449 | ||||||
Coca-Cola Bottlers Japan, Inc. | 2,954 | 87,849 | ||||||
Coca-Cola European Partners plc | 6,600 | 254,892 | ||||||
Coca-Cola HBC AG, DI* | 4,146 | 114,894 | ||||||
Cott Corp. | 6,400 | 84,066 | ||||||
Davide Campari-Milano SpA | 6,897 | 81,564 | ||||||
Diageo plc | 64,416 | 1,872,193 | ||||||
Fevertree Drinks plc | 3,795 | 79,931 | ||||||
Heineken Holding NV(a) | 2,574 | 215,575 | ||||||
Heineken NV | 5,361 | 477,829 | ||||||
Ito En Ltd. | 800 | 28,994 | ||||||
Kirin Holdings Co. Ltd. | 24,538 | 476,804 | ||||||
Molson Coors Canada, Inc., Class B | 330 | 31,651 | ||||||
Pernod Ricard SA | 5,678 | 710,124 | ||||||
Refresco Group NV(c) | 2,750 | 53,738 |
Shares | Value | |||||||
Beverages – (continued) | ||||||||
Remy Cointreau SA | 562 | $ | 56,683 | |||||
Royal Unibrew A/S | 1,210 | 52,600 | ||||||
Sapporo Holdings Ltd. | 1,800 | 50,301 | ||||||
Suntory Beverage & Food Ltd. | 3,000 | 134,162 | ||||||
Takara Holdings, Inc. | 8,600 | 92,195 | ||||||
Treasury Wine Estates Ltd. | 19,470 | 174,728 | ||||||
8,774,949 | ||||||||
Biotechnology – 0.6% | ||||||||
Abcam plc | 10,049 | 111,418 | ||||||
Actelion Ltd. (Registered)* | 2,904 | 774,828 | ||||||
Basilea Pharmaceutica AG (Registered)* (a) | 612 | 52,104 | ||||||
Bavarian Nordic A/S* (a) | 1,694 | 92,887 | ||||||
Cellectis SA* (a) | 1,732 | 42,059 | ||||||
CK Life Sciences Int’l Holdings, Inc. | 48,000 | 4,012 | ||||||
CSL Ltd. | 11,880 | 1,177,635 | ||||||
DBV Technologies SA* | 1,162 | 82,793 | ||||||
Galapagos NV* | 1,680 | 147,196 | ||||||
Genmab A/S* | 1,400 | 278,368 | ||||||
Genus plc | 2,539 | 56,335 | ||||||
Grifols SA | 8,976 | 240,988 | ||||||
Grifols SA (Preference), Class B | 4,876 | 104,044 | ||||||
Japan Tissue Engineering Co. Ltd.* | 1,600 | 18,818 | ||||||
Knight Therapeutics, Inc.* | 4,759 | 36,929 | ||||||
PeptiDream, Inc.* (a) | 800 | 47,869 | ||||||
ProMetic Life Sciences, Inc.* (a) | 42,539 | 67,201 | ||||||
SanBio Co. Ltd.* | 2,200 | 24,394 | ||||||
Shire plc | 23,034 | 1,352,037 | ||||||
Sirtex Medical Ltd. | 2,357 | 27,392 | ||||||
Swedish Orphan Biovitrum AB* (a) | 3,685 | 56,930 | ||||||
Takara Bio, Inc. | 200 | 2,751 | ||||||
Vitrolife AB | 660 | 37,641 | ||||||
4,836,629 | ||||||||
Building Products – 1.2% | ||||||||
Aica Kogyo Co. Ltd. | 1,500 | 42,792 | ||||||
Asahi Glass Co. Ltd. | 26,000 | 225,316 | ||||||
Assa Abloy AB, Class B(a) | 25,080 | 543,530 | ||||||
Belimo Holding AG (Registered) | 21 | 78,498 | ||||||
Bunka Shutter Co. Ltd. | 52,800 | 405,935 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 79 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Building Products – (continued) | ||||||||
Central Glass Co. Ltd. | 150,000 | $ | 648,605 | |||||
Cie de Saint-Gobain | 21,808 | 1,176,705 | ||||||
Daikin Industries Ltd. | 7,400 | 718,624 | ||||||
Geberit AG (Registered) | 990 | 450,719 | ||||||
GWA Group Ltd. | 14,406 | 33,614 | ||||||
Inwido AB | 36,603 | 526,012 | ||||||
James Halstead plc | 6,547 | 41,165 | ||||||
Kingspan Group plc | 3,575 | 124,323 | ||||||
Lindab International AB | 5,702 | 52,127 | ||||||
LIXIL Group Corp. | 10,800 | 269,637 | ||||||
Nibe Industrier AB, Class B | 9,994 | 88,599 | ||||||
Nichias Corp. | 94,000 | 959,648 | ||||||
Nichiha Corp. | 26,400 | 828,923 | ||||||
Nippon Sheet Glass Co. Ltd.* | 62,100 | 483,006 | ||||||
Nitto Boseki Co. Ltd. | 9,000 | 45,456 | ||||||
Noritz Corp. | 2,000 | 38,916 | ||||||
Okabe Co. Ltd. | 31,300 | 280,512 | ||||||
Reliance Worldwide Corp. Ltd. | 35,079 | 80,013 | ||||||
Rockwool International A/S, Class A | 220 | 38,654 | ||||||
Rockwool International A/S, Class B | 82 | 15,008 | ||||||
Sanwa Holdings Corp. | 8,000 | 80,596 | ||||||
Schweiter Technologies AG | 55 | 66,081 | ||||||
Sekisui Jushi Corp. | 22,900 | 403,477 | ||||||
Systemair AB | 1,706 | 30,345 | ||||||
Takara Standard Co. Ltd. | 1,376 | 22,824 | ||||||
Takasago Thermal Engineering Co. Ltd. | 47,400 | 733,941 | ||||||
Tarkett SA | 605 | 28,421 | ||||||
TOTO Ltd. | 3,000 | 114,515 | ||||||
Uponor OYJ | 2,765 | 52,361 | ||||||
9,728,898 | ||||||||
Capital Markets – 2.8% | ||||||||
3i Group plc | 47,032 | 482,826 | ||||||
Aberdeen Asset Management plc | 22,383 | 80,793 | ||||||
Allied Minds plc* (a) | 8,967 | 18,179 | ||||||
Amundi SA(c) | 1,518 | 99,843 | ||||||
Anima Holding SpA(c) | 153,626 | 1,003,746 | ||||||
Ashmore Group plc | 8,030 | 36,132 |
Shares | Value | |||||||
Capital Markets – (continued) | ||||||||
AURELIUS Equity Opportunities SE & Co. KGaA(a) | 2,244 | $ | 110,695 | |||||
Avanza Bank Holding AB | 1,367 | 54,897 | ||||||
Azimut Holding SpA | 2,399 | 46,814 | ||||||
Banca Generali SpA | 1,320 | 37,933 | ||||||
Bolsas y Mercados Espanoles SHMSF SA | 941 | 33,713 | ||||||
Brederode SA | 726 | 36,635 | ||||||
Brewin Dolphin Holdings plc | 19,014 | 80,440 | ||||||
Brookfield Asset Management, Inc., Class A | 22,440 | 828,145 | ||||||
BT Investment Management Ltd. | 6,705 | 59,871 | ||||||
Bure Equity AB | 2,304 | 28,492 | ||||||
Burford Capital Ltd. | 9,671 | 97,593 | ||||||
Capital Stage AG | 3,696 | 25,432 | ||||||
China Financial International Investments Ltd.* | 280,000 | 10,620 | ||||||
China Medical & HealthCare Group Ltd.* | 2,230,000 | 110,388 | ||||||
CI Financial Corp.(a) | 9,441 | 184,359 | ||||||
Close Brothers Group plc | 5,280 | 115,581 | ||||||
Credit Suisse Group AG (Registered)* | 51,744 | 786,465 | ||||||
Daiwa Securities Group, Inc. | 78,000 | 473,934 | ||||||
Deutsche Bank AG (Registered)* | 89,398 | 1,609,195 | ||||||
Deutsche Boerse AG | 4,952 | 484,514 | ||||||
EFG International AG* | 60,984 | 386,568 | ||||||
Emperor Capital Group Ltd. | 1,980,000 | 170,568 | ||||||
Euronext NV(c) | 1,650 | 80,899 | ||||||
Financiere de Tubize SA | 179 | 12,955 | ||||||
Flow Traders(a) (c) | 2,188 | 67,393 | ||||||
Freeman FinTech Corp. Ltd.* | 480,000 | 30,549 | ||||||
GAM Holding AG* (a) | 112,072 | 1,435,449 | ||||||
Gimv NV | 880 | 53,663 | ||||||
Guoco Group Ltd. | 3,000 | 34,445 | ||||||
Haitong International Securities Group Ltd. | 79,089 | 42,913 | ||||||
Hargreaves Lansdown plc | 5,061 | 90,227 | ||||||
Henderson Group plc | 25,190 | 75,217 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 30,305 | 746,564 | ||||||
IG Group Holdings plc | 7,865 | 55,303 | ||||||
IGM Financial, Inc. | 3,577 | 107,286 |
See Accompanying Notes to the Financial Statements.
80 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Intermediate Capital Group plc | 11,137 | $ | 112,530 | |||||
Investec plc | 23,694 | 175,188 | ||||||
IOOF Holdings Ltd. | 5,500 | 36,278 | ||||||
IP Group plc* (a) | 25,803 | 46,569 | ||||||
IRESS Ltd. | 5,405 | 50,325 | ||||||
Jafco Co. Ltd. | 300 | 10,685 | ||||||
Japan Exchange Group, Inc. | 16,200 | 226,861 | ||||||
Julius Baer Group Ltd.* | 6,074 | 316,376 | ||||||
Jupiter Fund Management plc | 12,914 | 79,294 | ||||||
kabu.com Securities Co. Ltd. | 4,000 | 12,631 | ||||||
Kyokuto Securities Co. Ltd. | 17,300 | 257,630 | ||||||
Leonteq AG* | 343 | 15,144 | ||||||
London Stock Exchange Group plc | 8,118 | 355,305 | ||||||
Macquarie Group Ltd. | 15,180 | 1,055,770 | ||||||
Magellan Financial Group Ltd. | 2,585 | 45,585 | ||||||
Man Group plc | 92,288 | 183,514 | ||||||
Mason Financial Holdings Ltd.* | 558,905 | 8,552 | ||||||
Matsui Securities Co. Ltd. | 6,900 | 56,205 | ||||||
Melker Schorling AB(a) | 770 | 49,305 | ||||||
Monex Group, Inc.(a) | 15,400 | 38,545 | ||||||
NEX Group plc | 6,725 | 53,551 | ||||||
Nomura Holdings, Inc. | 162,200 | 973,462 | ||||||
Okasan Securities Group, Inc. | 145,000 | 844,218 | ||||||
Partners Group Holding AG(a) | 528 | 319,044 | ||||||
Perpetual Ltd. | 1,210 | 47,761 | ||||||
Platinum Asset Management Ltd. | 3,520 | 12,267 | ||||||
Rathbone Brothers plc | 1,817 | 55,266 | ||||||
Ratos AB, Class B | 11,384 | 53,405 | ||||||
Rothschild & Co. | 28,681 | 890,117 | ||||||
SBI Holdings, Inc. | 10,700 | 148,305 | ||||||
Schroders plc | 2,873 | 118,459 | ||||||
Schroders plc (Non-Voting) | 1,249 | 37,489 | ||||||
Singapore Exchange Ltd. | 16,700 | 88,417 | ||||||
SVG Capital plc* | 2,789 | 26,647 | ||||||
Thomson Reuters Corp. | 8,052 | 365,293 | ||||||
TMX Group Ltd. | 425 | 23,971 | ||||||
Tokai Tokyo Financial Holdings, Inc. | 13,200 | 66,788 | ||||||
Touchstone Innovations plc* | 5,830 | 23,721 | ||||||
TP ICAP plc | 352,176 | 2,087,230 | ||||||
UBS Group AG (Registered) | 170,676 | 2,914,754 |
Shares | Value | |||||||
Capital Markets – (continued) | ||||||||
Value Partners Group Ltd.(a) | 21,000 | $ | 19,441 | |||||
Vontobel Holding AG (Registered) | 339 | 19,956 | ||||||
Vostok New Ventures Ltd., SDR* (a) | 2,193 | 17,089 | ||||||
VZ Holding AG | 55 | 15,291 | ||||||
22,681,468 | ||||||||
Chemicals – 3.2% | ||||||||
ADEKA Corp. | 4,200 | 61,981 | ||||||
Agrium, Inc. | 3,960 | 371,063 | ||||||
Air Liquide SA | 10,212 | 1,229,911 | ||||||
Air Water, Inc. | 6,000 | 115,511 | ||||||
Akzo Nobel NV(a) | 6,666 | 582,748 | ||||||
Arkema SA | 3,366 | 356,314 | ||||||
Asahi Kasei Corp. | 55,000 | 524,244 | ||||||
BASF SE | 23,628 | 2,301,780 | ||||||
Borregaard ASA | 4,323 | 48,698 | ||||||
C Uyemura & Co. Ltd. | 4,300 | 225,280 | ||||||
Chr Hansen Holding A/S | 2,508 | 168,992 | ||||||
Chugoku Marine Paints Ltd. | 48,000 | 354,822 | ||||||
Clariant AG (Registered)* | 6,216 | 125,825 | ||||||
Corbion NV | 2,530 | 78,519 | ||||||
Covestro AG(c) | 2,588 | 201,671 | ||||||
Croda International plc | 4,071 | 198,244 | ||||||
Daicel Corp. | 13,700 | 157,193 | ||||||
Denka Co. Ltd. | 13,000 | 66,942 | ||||||
DIC Corp. | 2,899 | 103,118 | ||||||
DuluxGroup Ltd. | 12,466 | 63,115 | ||||||
Elementis plc | 21,010 | 82,687 | ||||||
EMS-Chemie Holding AG (Registered) | 114 | 71,404 | ||||||
Essentra plc(a) | 181,882 | 1,274,203 | ||||||
Evonik Industries AG | 4,828 | 161,167 | ||||||
Frutarom Industries Ltd. | 975 | 57,346 | ||||||
FUCHS PETROLUB SE | 54 | 2,438 | ||||||
FUCHS PETROLUB SE (Preference) | 2,151 | 110,921 | ||||||
Fujimori Kogyo Co. Ltd. | 10,200 | 319,350 | ||||||
Fuso Chemical Co. Ltd. | 1,100 | 34,390 | ||||||
Givaudan SA (Registered) | 198 | 381,301 | ||||||
Hexpol AB | 5,994 | 66,643 | ||||||
Hitachi Chemical Co. Ltd. | 2,200 | 62,959 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 81 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Incitec Pivot Ltd. | 76,362 | $ | 216,437 | |||||
Israel Chemicals Ltd. | 20,232 | 87,473 | ||||||
Israel Corp. Ltd. (The)* | 136 | 24,493 | ||||||
Johnson Matthey plc | 7,134 | 274,950 | ||||||
JSP Corp. | 8,800 | 205,257 | ||||||
JSR Corp. | 9,400 | 171,691 | ||||||
K+S AG (Registered)(a) | 8,209 | 195,813 | ||||||
Kaneka Corp. | 13,000 | 102,395 | ||||||
Kansai Paint Co. Ltd. | 6,100 | 135,057 | ||||||
Kanto Denka Kogyo Co. Ltd. | 34,000 | 299,219 | ||||||
Kemira OYJ | 4,425 | 56,619 | ||||||
Koninklijke DSM NV | 4,653 | 332,742 | ||||||
Konishi Co. Ltd. | 26,400 | 337,016 | ||||||
Kumiai Chemical Industry Co. Ltd.(a) | 46,448 | 267,929 | ||||||
Kuraray Co. Ltd. | 13,400 | 216,141 | ||||||
Kureha Corp. | 10,500 | 465,327 | ||||||
LANXESS AG | 2,395 | 172,913 | ||||||
Lenzing AG | 485 | 90,418 | ||||||
Linde AG | 4,752 | 853,565 | ||||||
Lintec Corp. | 1,800 | 39,627 | ||||||
Methanex Corp. | 1,815 | 83,270 | ||||||
Mitsubishi Chemical Holdings Corp. | 66,500 | 520,391 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 8,500 | 181,636 | ||||||
Mitsui Chemicals, Inc. | 37,000 | 189,199 | ||||||
Nihon Parkerizing Co. Ltd. | 7,600 | 97,565 | ||||||
Nippon Kayaku Co. Ltd. | 7,000 | 95,577 | ||||||
Nippon Paint Holdings Co. Ltd. | 4,000 | 153,404 | ||||||
Nippon Shokubai Co. Ltd. | 1,400 | 94,070 | ||||||
Nippon Soda Co. Ltd. | 108,198 | 586,271 | ||||||
Nissan Chemical Industries Ltd. | 3,800 | 117,781 | ||||||
Nitto Denko Corp. | 3,300 | 248,351 | ||||||
NOF Corp. | 4,000 | 45,070 | ||||||
Novozymes A/S, Class B | 6,338 | 273,758 | ||||||
Nufarm Ltd. | 7,150 | 54,380 | ||||||
Okamoto Industries, Inc. | 4,000 | 43,348 | ||||||
Orica Ltd. | 17,424 | 241,456 | ||||||
Osaka Soda Co. Ltd. | 70,000 | 317,754 | ||||||
Potash Corp. of Saskatchewan, Inc. | 21,318 | 358,912 |
Shares | Value | |||||||
Chemicals – (continued) | ||||||||
Sakata INX Corp. | 33,400 | $ | 471,621 | |||||
Sanyo Chemical Industries Ltd. | 9,200 | 412,667 | ||||||
Shikoku Chemicals Corp. | 35,000 | 400,332 | ||||||
Shin-Etsu Chemical Co. Ltd. | 9,900 | 860,066 | ||||||
Shin-Etsu Polymer Co. Ltd. | 25,600 | 193,372 | ||||||
Showa Denko KK | 8,500 | 162,268 | ||||||
Sika AG | 66 | 421,016 | ||||||
Sirius Minerals plc* (a) | 232,717 | 76,022 | ||||||
SOL SpA | 3,009 | 32,439 | ||||||
Solvay SA | 3,498 | 444,718 | ||||||
Sumitomo Bakelite Co. Ltd. | 15,000 | 96,349 | ||||||
Sumitomo Chemical Co. Ltd. | 66,000 | 372,423 | ||||||
Symrise AG | 3,102 | 217,099 | ||||||
Syngenta AG (Registered)* | 2,392 | 1,111,116 | ||||||
Synthomer plc | 12,732 | 81,471 | ||||||
T Hasegawa Co. Ltd. | 900 | 17,472 | ||||||
Taiyo Holdings Co. Ltd. | 900 | 40,208 | ||||||
Taiyo Nippon Sanso Corp. | 7,200 | 85,971 | ||||||
Takasago International Corp. | 600 | 19,969 | ||||||
Teijin Ltd. | 8,200 | 158,821 | ||||||
Tessenderlo Chemie NV* | 786 | 32,234 | ||||||
Tikkurila OYJ | 1,578 | 31,274 | ||||||
Toagosei Co. Ltd. | 6,900 | 81,027 | ||||||
Tokai Carbon Co. Ltd. | 11,000 | 48,156 | ||||||
Tokuyama Corp.* | 11,000 | 54,176 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 700 | 22,670 | ||||||
Toray Industries, Inc. | 36,000 | 318,468 | ||||||
Tosoh Corp. | 26,000 | 244,209 | ||||||
Toyo Ink SC Holdings Co. Ltd. | 8,000 | 39,329 | ||||||
Toyobo Co. Ltd. | 56,000 | 98,968 | ||||||
Ube Industries Ltd. | 80,000 | 185,880 | ||||||
Umicore SA | 2,574 | 150,659 | ||||||
Victrex plc | 3,740 | 92,708 | ||||||
Wacker Chemie AG(a) | 136 | 14,391 | ||||||
W-Scope Corp.(a) | 1,200 | 16,159 | ||||||
Yara International ASA | 8,448 | 314,784 | ||||||
Zeon Corp. | 5,000 | 56,921 | ||||||
25,685,488 | ||||||||
Commercial Services & Supplies – 1.0% | ||||||||
Aggreko plc(a) | 10,846 | 124,534 | ||||||
Babcock International Group plc | 22,242 | 258,693 |
See Accompanying Notes to the Financial Statements.
82 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Commercial Services & Supplies – (continued) | ||||||||
Beijing Gas Blue Sky Holdings Ltd.* | 280,000 | $ | 20,521 | |||||
Bell System24 Holdings, Inc. | 5,600 | 53,453 | ||||||
Berendsen plc | 3,740 | 40,596 | ||||||
Bilfinger SE* (a) | 2,914 | 126,547 | ||||||
Boyd Group Income Fund | 300 | 19,365 | ||||||
Brambles Ltd.(a) | 39,904 | 308,568 | ||||||
Bravida Holding AB(c) | 4,950 | 34,995 | ||||||
Caverion Corp.* (a) | 10,528 | 85,984 | ||||||
Cleanaway Waste Management Ltd. | 76,916 | 73,052 | ||||||
Coor Service Management Holding AB* (c) | 3,695 | 23,055 | ||||||
Credit Corp. Group Ltd. | 840 | 11,433 | ||||||
Dai Nippon Printing Co. Ltd. | 13,000 | 144,613 | ||||||
Daiseki Co. Ltd. | 2,500 | 55,733 | ||||||
dorma+kaba Holding AG | 50 | 42,820 | ||||||
Downer EDI Ltd. | 42,314 | 186,070 | ||||||
Duskin Co. Ltd. | 5,700 | 127,837 | ||||||
Edenred | 4,290 | 109,806 | ||||||
Elis SA | 6,971 | 144,230 | ||||||
G4S plc | 70,554 | 278,493 | ||||||
HomeServe plc | 11,489 | 99,439 | ||||||
Intrum Justitia AB(a) | 1,595 | 63,405 | ||||||
ISS A/S | 4,671 | 193,685 | ||||||
ITAB Shop Concept AB, Class B | 1,176 | 9,330 | ||||||
IWG plc | 13,915 | 58,490 | ||||||
Kokuyo Co. Ltd. | 5,600 | 72,744 | ||||||
Lassila & Tikanoja OYJ | 1,345 | 26,115 | ||||||
Loomis AB, Class B | 2,261 | 82,092 | ||||||
Mitie Group plc(a) | 253,044 | 686,179 | ||||||
Mitsubishi Pencil Co. Ltd. | 900 | 49,897 | ||||||
Nissha Printing Co. Ltd.(a) | 1,800 | 44,762 | ||||||
Okamura Corp. | 73,600 | 651,024 | ||||||
Park24 Co. Ltd.(a) | 2,200 | 56,742 | ||||||
PayPoint plc | 4,015 | 52,827 | ||||||
Pilot Corp. | 500 | 20,297 | ||||||
Prestige International, Inc. | 2,000 | 17,960 | ||||||
Prosegur Cia de Seguridad SA | 5,610 | 36,593 | ||||||
Relia, Inc. | 2,100 | 20,742 | ||||||
Rentokil Initial plc | 42,224 | 136,022 |
Shares | Value | |||||||
Commercial Services & Supplies – (continued) | ||||||||
Ritchie Bros Auctioneers, Inc. | 2,310 | $ | 75,620 | |||||
Sato Holdings Corp. | 1,100 | 25,114 | ||||||
Secom Co. Ltd. | 5,200 | 377,206 | ||||||
Securitas AB, Class B | 7,056 | 116,660 | ||||||
Serco Group plc* | 64,239 | 96,074 | ||||||
SG Fleet Group Ltd. | 11,375 | 30,880 | ||||||
SmartGroup Corp. Ltd. | 896 | 4,329 | ||||||
Societe BIC SA | 605 | 67,990 | ||||||
Sohgo Security Services Co. Ltd. | 1,900 | 82,924 | ||||||
Spotless Group Holdings Ltd. | 780,186 | 630,139 | ||||||
Tomra Systems ASA | 2,590 | 30,158 | ||||||
Toppan Forms Co. Ltd. | 31,600 | 318,636 | ||||||
Toppan Printing Co. Ltd. | 12,000 | 120,678 | ||||||
Transcontinental, Inc., Class A | 44,708 | 796,197 | ||||||
Waste Connections, Inc. | 4,488 | 412,201 | ||||||
7,833,549 | ||||||||
Communications Equipment – 0.3% | ||||||||
Hitachi Kokusai Electric, Inc. | 1,000 | 22,427 | ||||||
Mitel Networks Corp.* | 66,427 | 468,975 | ||||||
Nokia OYJ(a) | 150,612 | 861,047 | ||||||
Telefonaktiebolaget LM Ericsson, Class A | 1,434 | 9,166 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 134,904 | 869,926 | ||||||
VTech Holdings Ltd. | 2,500 | 31,678 | ||||||
2,263,219 | ||||||||
Construction & Engineering – 2.9% | ||||||||
ACS Actividades de Construccion y Servicios SA | 9,043 | 335,106 | ||||||
Aecon Group, Inc. | 2,805 | 33,214 | ||||||
AF Gruppen ASA | 1,188 | 21,218 | ||||||
Arcadis NV(a) | 51,978 | 900,246 | ||||||
Badger Daylighting Ltd.(a) | 2,361 | 56,085 | ||||||
Balfour Beatty plc | 15,180 | 57,307 | ||||||
BOSKALIS WESTMINSTER | 1,410 | 51,843 | ||||||
Bouygues SA* (a) | 7,327 | 307,939 | ||||||
Carillion plc(a) | 311,173 | 895,741 | ||||||
Chiyoda Corp. | 4,000 | 26,590 | ||||||
Cie d’Entreprises CFE | 275 | 40,098 | ||||||
CIMIC Group Ltd. | 1,935 | 53,586 | ||||||
COMSYS Holdings Corp. | 3,200 | 60,917 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 83 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Daiho Corp. | 66,000 | $ | 321,504 | |||||
Eiffage SA | 2,462 | 208,474 | ||||||
Elecnor SA | 31,220 | 339,970 | ||||||
Electra Ltd. | 1,190 | 259,846 | ||||||
Ferrovial SA | 14,324 | 304,709 | ||||||
FLSmidth & Co. A/S | 2,782 | 167,291 | ||||||
Fukuda Corp. | 23,000 | 203,858 | ||||||
Galliford Try plc | 57,552 | 1,072,194 | ||||||
Gold-Finance Holdings Ltd.* | 89,827 | 15,014 | ||||||
Hazama Ando Corp. | 132,700 | 944,031 | ||||||
Hibiya Engineering Ltd. | 1,600 | 23,583 | ||||||
HOCHTIEF AG | 440 | 79,249 | ||||||
Implenia AG (Registered) | 10,032 | 769,948 | ||||||
JGC Corp. | 5,328 | 92,966 | ||||||
John Laing Group plc(c) | 258,984 | 963,634 | ||||||
Kajima Corp. | 39,000 | 264,852 | ||||||
Kandenko Co. Ltd. | 3,000 | 29,820 | ||||||
Kier Group plc | 68,058 | 1,178,109 | ||||||
Kinden Corp. | 7,500 | 113,506 | ||||||
Koninklijke BAM Groep NV | 159,918 | 899,621 | ||||||
Kumagai Gumi Co. Ltd. | 270,000 | 726,653 | ||||||
Kyowa Exeo Corp. | 3,900 | 58,918 | ||||||
Kyudenko Corp. | 2,100 | 60,191 | ||||||
Luen Wong Group Holdings Ltd.* | 10,000 | 25,072 | ||||||
Maeda Corp. | 8,000 | 73,634 | ||||||
Maeda Road Construction Co. Ltd. | 3,000 | 55,279 | ||||||
Maire Tecnimont SpA(a) | 75,900 | 301,512 | ||||||
Mirait Holdings Corp. | 46,300 | 480,985 | ||||||
Monadelphous Group Ltd. | 5,516 | 51,523 | ||||||
NCC AB, Class A | 1,880 | 50,000 | ||||||
NCC AB, Class B | 2,271 | 60,399 | ||||||
Nippo Corp. | 2,000 | 38,504 | ||||||
Nippon Densetsu Kogyo Co. Ltd. | 1,700 | 33,628 | ||||||
Nishimatsu Construction Co. Ltd. | 13,000 | 66,125 | ||||||
Obayashi Corp. | 33,400 | 323,902 | ||||||
Obrascon Huarte Lain SA(a) | 85,816 | 375,666 | ||||||
OCI NV* (a) | 1,386 | 26,956 | ||||||
Okumura Corp. | 15,000 | 92,716 | ||||||
Peab AB | 7,294 | 79,737 |
Shares | Value | |||||||
Construction & Engineering – (continued) | ||||||||
Penta-Ocean Construction Co. Ltd. | 9,000 | $ | 45,537 | |||||
Porr Ag(a) | 8,580 | 306,924 | ||||||
Raito Kogyo Co. Ltd. | 39,600 | 393,620 | ||||||
Sacyr SA* (a) | 229,614 | 575,088 | ||||||
Salini Impregilo SpA(a) | 114,479 | 389,444 | ||||||
Sanki Engineering Co. Ltd. | 34,600 | 299,223 | ||||||
Shikun & Binui Ltd. | 160,446 | 421,089 | ||||||
Shimizu Corp. | 27,000 | 258,931 | ||||||
SHO-BOND Holdings Co. Ltd. | 600 | 27,451 | ||||||
Skanska AB, Class B | 15,380 | 368,051 | ||||||
SNC-Lavalin Group, Inc. | 3,828 | 153,702 | ||||||
SPIE SA | 2,145 | 59,434 | ||||||
Sumitomo Mitsui Construction Co. Ltd. | 575,400 | 624,593 | ||||||
Sweco AB, Class B | 2,085 | 51,732 | ||||||
Taikisha Ltd. | 24,300 | 605,157 | ||||||
Taisei Corp. | 47,000 | 358,392 | ||||||
Takamatsu Construction Group Co. Ltd. | 2,600 | 62,114 | ||||||
Toa Corp. | 15,000 | 275,859 | ||||||
Toda Corp. | 9,000 | 55,549 | ||||||
Toenec Corp. | 1,000 | 5,293 | ||||||
Tokyu Construction Co. Ltd. | 66,700 | 543,916 | ||||||
Toshiba Plant Systems & Services Corp. | 3,800 | 61,805 | ||||||
Totetsu Kogyo Co. Ltd. | 1,800 | 52,077 | ||||||
Toyo Engineering Corp. | 112,000 | 279,322 | ||||||
United Engineers Ltd. | 391,200 | 806,079 | ||||||
Veidekke ASA | 3,948 | 52,769 | ||||||
Vinci SA(a) | 13,200 | 1,122,620 | ||||||
Vision Fame International Holding Ltd.* | 110,000 | 13,436 | ||||||
WSP Global, Inc. | 1,210 | 44,009 | ||||||
Yat Sing Holdings Ltd.* | 15,000 | 7,714 | ||||||
YIT OYJ(a) | 86,280 | 683,050 | ||||||
Yurtec Corp. | 29,000 | 181,071 | ||||||
23,258,520 | ||||||||
Construction Materials – 0.6% | ||||||||
Adelaide Brighton Ltd. | 8,560 | 37,897 | ||||||
Boral Ltd. | 23,295 | 107,314 | ||||||
Breedon Group plc* (a) | 48,510 | 48,168 |
See Accompanying Notes to the Financial Statements.
84 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Construction Materials – (continued) | ||||||||
Brickworks Ltd. | 2,458 | $ | 27,077 | |||||
Buzzi Unicem SpA | 811 | 20,842 | ||||||
Buzzi Unicem SpA (Retirement Savings Plan) | 1,925 | 28,446 | ||||||
Cementir Holding SpA | 41,022 | 247,030 | ||||||
CRH plc | 21,846 | 796,344 | ||||||
CSR Ltd. | 363,462 | 1,331,894 | ||||||
Fletcher Building Ltd. | 24,354 | 142,958 | ||||||
HeidelbergCement AG | 3,399 | 314,614 | ||||||
Ibstock plc(c) | 11,660 | 34,545 | ||||||
Imerys SA | 1,375 | 118,272 | ||||||
James Hardie Industries plc, CDI | 11,635 | 197,257 | ||||||
LafargeHolcim Ltd. (Registered)* | 12,474 | 706,749 | ||||||
Mitani Sekisan Co. Ltd. | 9,000 | 217,027 | ||||||
RHI AG | 18,084 | 526,776 | ||||||
Sumitomo Osaka Cement Co. Ltd. | 11,000 | 47,762 | ||||||
Taiheiyo Cement Corp. | 51,000 | 169,741 | ||||||
Vicat SA | 770 | 54,762 | ||||||
Wienerberger AG | 2,468 | 57,782 | ||||||
5,233,257 | ||||||||
Consumer Finance – 0.4% | ||||||||
Acom Co. Ltd.* (a) | 14,400 | 63,945 | ||||||
AEON Financial Service Co. | 4,800 | 92,193 | ||||||
Aiful Corp.* (a) | 4,700 | 14,167 | ||||||
Allied Properties HK Ltd. | 1,266,000 | 299,508 | ||||||
B2Holding ASA* | 12,936 | 21,896 | ||||||
Cembra Money Bank AG | 1,320 | 112,580 | ||||||
Credit Saison Co. Ltd. | 5,600 | 101,932 | ||||||
Eclipx Group Ltd. | 208,730 | 602,541 | ||||||
FlexiGroup Ltd. | 188,374 | 328,240 | ||||||
Hitachi Capital Corp. | 1,600 | 39,171 | ||||||
Hoist Finance AB(c) | 3,245 | 30,508 | ||||||
International Personal Finance plc | 159,071 | 330,306 | ||||||
J Trust Co. Ltd. | 53,900 | 418,261 | ||||||
Jaccs Co. Ltd. | 98,000 | 420,239 | ||||||
Orient Corp. | 19,200 | 34,277 | ||||||
Provident Financial plc | 3,248 | 134,635 | ||||||
Resurs Holding AB* (c) | 5,684 | 36,108 |
Shares | Value | |||||||
Consumer Finance – (continued) | ||||||||
Sun Hung Kai & Co. Ltd. | 354,996 | $ | 264,277 | |||||
3,344,784 | ||||||||
Containers & Packaging – 0.3% | ||||||||
Amcor Ltd. | 31,813 | 373,762 | ||||||
BillerudKorsnas AB | 4,345 | 69,679 | ||||||
Cascades, Inc. | 46,596 | 560,256 | ||||||
CCL Industries, Inc., Class B | 616 | 142,365 | ||||||
DS Smith plc | 41,844 | 233,596 | ||||||
FP Corp. | 600 | 28,528 | ||||||
Fuji Seal International, Inc. | 2,000 | 47,618 | ||||||
Future World Financial Holdings Ltd.* | 224,000 | 9,936 | ||||||
Huhtamaki OYJ(a) | 2,035 | 78,846 | ||||||
Intertape Polymer Group, Inc. | 2,475 | 43,624 | ||||||
Mayr Melnhof Karton AG | 275 | 33,240 | ||||||
Orora Ltd. | 24,310 | 54,723 | ||||||
Pack Corp. (The) | 600 | 16,902 | ||||||
Pact Group Holdings Ltd. | 11,241 | 59,266 | ||||||
Rengo Co. Ltd. | 10,000 | 60,465 | ||||||
RPC Group plc | 8,662 | 90,885 | ||||||
Smurfit Kappa Group plc | 11,974 | 320,631 | ||||||
Toyo Seikan Group Holdings Ltd. | 5,600 | 93,693 | ||||||
Vidrala SA | 1,180 | 69,259 | ||||||
Winpak Ltd. | 930 | 39,681 | ||||||
2,426,955 | ||||||||
Distributors – 0.1% | ||||||||
Bapcor Ltd.(a) | 10,941 | 42,793 | ||||||
Canon Marketing Japan, Inc. | 3,700 | 77,937 | ||||||
D’ieteren SA/NV | 935 | 45,593 | ||||||
Doshisha Co. Ltd. | 1,800 | 36,381 | ||||||
Inchcape plc | 16,764 | 185,328 | ||||||
Jardine Cycle & Carriage Ltd. | 2,222 | 75,084 | ||||||
PALTAC CORPORATION | 800 | 23,612 | ||||||
Uni-Select, Inc. | 1,815 | 48,013 | ||||||
534,741 | ||||||||
Diversified Consumer Services – 0.2% | ||||||||
AA plc | 40,550 | 137,082 | ||||||
Benesse Holdings, Inc. | 1,300 | 39,244 | ||||||
Cross-Harbour Holdings Ltd. (The) | 220,000 | 330,952 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 85 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Consumer Services – (continued) | ||||||||
Dignity plc | 2,306 | $ | 74,376 | |||||
Enercare, Inc. | 4,565 | 72,383 | ||||||
G8 Education Ltd. | 279,851 | 774,360 | ||||||
IDP Education Ltd. | 6,853 | 23,575 | ||||||
InvoCare Ltd. | 5,225 | 57,011 | ||||||
Navitas Ltd. | 12,760 | 43,800 | ||||||
1,552,783 | ||||||||
Diversified Financial Services – 0.8% | ||||||||
Ackermans & van Haaren NV | 784 | 128,231 | ||||||
AMP Ltd.(a) | 115,962 | 464,831 | ||||||
Banca IFIS SpA* | 1,617 | 69,729 | ||||||
Banca Mediolanum SpA | 2,092 | 16,004 | ||||||
Banque Nationale de Belgique | 160 | 523,567 | ||||||
Cerved Information Solutions SpA | 10,431 | 111,317 | ||||||
Challenger Ltd. | 12,100 | 119,628 | ||||||
Corp. Financiera Alba SA | 385 | 20,920 | ||||||
Element Fleet Management Corp. | 16,962 | 148,742 | ||||||
Eurazeo SA | 873 | 59,169 | ||||||
EXOR NV | 3,158 | 177,275 | ||||||
FFP | 330 | 31,289 | ||||||
Financial Products Group Co. Ltd. | 4,000 | 34,736 | ||||||
First Pacific Co. Ltd. | 82,000 | 63,154 | ||||||
Fuyo General Lease Co. Ltd. | 700 | 32,654 | ||||||
Goldin Financial Holdings Ltd.* | 60,000 | 22,912 | ||||||
GRENKE AG | 165 | 32,863 | ||||||
Groupe Bruxelles Lambert SA | 1,782 | 170,784 | ||||||
HAL Trust | 2,046 | 410,953 | ||||||
IBJ Leasing Co. Ltd. | 28,638 | 622,241 | ||||||
Industrivarden AB, Class A | 8,328 | 207,382 | ||||||
Industrivarden AB, Class C | 275 | 6,398 | ||||||
Investment AB Latour, Class B | 935 | 42,269 | ||||||
Investor AB, Class A | 2,096 | 94,920 | ||||||
Investor AB, Class B | 13,352 | 610,542 | ||||||
KBC Ancora* | 1,377 | 65,467 | ||||||
Kinnevik AB, Class B | 5,808 | 155,058 | ||||||
L E Lundbergforetagen AB, Class B | 678 | 49,119 |
Shares | Value | |||||||
Diversified Financial Services – (continued) | ||||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 22,000 | $ | 114,865 | |||||
Onex Corp. | 2,046 | 147,378 | ||||||
ORIX Corp. | 61,100 | 932,368 | ||||||
Pargesa Holding SA | 1,265 | 94,483 | ||||||
Ricoh Leasing Co. Ltd. | 9,600 | 310,900 | ||||||
Sofina SA | 330 | 47,345 | ||||||
SRH NV* (b) | 2,857 | — | ||||||
Tokyo Century Corp. | 600 | 20,669 | ||||||
Wendel SA | 1,386 | 194,169 | ||||||
Zenkoku Hosho Co. Ltd. | 1,600 | 57,845 | ||||||
6,412,176 | ||||||||
Diversified Telecommunication Services – 1.7% | ||||||||
B Communications Ltd. | 1,000 | 19,289 | ||||||
BCE, Inc. | 7,167 | 325,773 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 43,777 | 73,712 | ||||||
BT Group plc | 382,200 | 1,506,901 | ||||||
Cellnex Telecom SA(c) | 2,254 | 39,824 | ||||||
Chorus Ltd. | 17,070 | 52,620 | ||||||
Com Hem Holding AB | 5,606 | 69,831 | ||||||
Deutsche Telekom AG (Registered) | 81,246 | 1,424,413 | ||||||
Ei Towers SpA | 1,054 | 60,831 | ||||||
Elisa OYJ | 4,092 | 139,339 | ||||||
Euskaltel SA(c) | 4,565 | 46,415 | ||||||
HKBN Ltd. | 49,000 | 52,985 | ||||||
HKT Trust & HKT Ltd. | 87,400 | 111,813 | ||||||
Hutchison Telecommunications Hong Kong Holdings Ltd. | 68,000 | 20,109 | ||||||
Iliad SA | 738 | 179,132 | ||||||
Infrastrutture Wireless Italiane | 5,179 | 28,650 | ||||||
Inmarsat plc | 9,625 | 101,798 | ||||||
Koninklijke KPN NV(a) | 115,896 | 335,074 | ||||||
Nippon Telegraph & Telephone Corp. | 29,400 | 1,257,815 | ||||||
Orange SA | 102,300 | 1,581,874 | ||||||
PCCW Ltd. | 171,035 | 96,540 | ||||||
Proximus SADP(a) | 3,250 | 99,395 | ||||||
SFR Group SA* | 3,916 | 128,186 | ||||||
Singapore Telecommunications Ltd. | 199,000 | 532,489 |
See Accompanying Notes to the Financial Statements.
86 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
Spark New Zealand Ltd. | 49,352 | $ | 125,196 | |||||
Sunrise Communications Group AG* (c) | 770 | 57,202 | ||||||
Swisscom AG (Registered)(a) | 597 | 260,282 | ||||||
TalkTalk Telecom Group plc(a) | 13,991 | 34,971 | ||||||
TDC A/S | 36,762 | 197,272 | ||||||
Telecom Italia SpA* | 502,327 | 445,812 | ||||||
Telecom Italia SpA | 254,442 | 181,622 | ||||||
Telefonica Deutschland Holding AG | 22,757 | 110,276 | ||||||
Telefonica SA | 188,564 | 2,085,195 | ||||||
Telenor ASA | 27,126 | 439,513 | ||||||
Telia Co. AB(a) | 113,256 | 461,732 | ||||||
Telstra Corp. Ltd. | 108,372 | 342,014 | ||||||
TELUS Corp. | 4,752 | 157,855 | ||||||
TPG Telecom Ltd.(a) | 7,176 | 31,663 | ||||||
Vivendi SA* (a) | 22,836 | 452,957 | ||||||
Vocus Group Ltd.(a) | 25,541 | 64,370 | ||||||
13,732,740 | ||||||||
Electric Utilities – 1.2% | ||||||||
Acciona SA | 605 | 49,899 | ||||||
Alpiq Holding AG (Registered)* | 55 | 4,083 | ||||||
AusNet Services | 33,122 | 43,348 | ||||||
BKW AG | 1,400 | 75,805 | ||||||
Cheung Kong Infrastructure Holdings Ltd. | 16,000 | 140,198 | ||||||
Chubu Electric Power Co., Inc. | 29,700 | 398,993 | ||||||
Chugoku Electric Power Co., Inc. (The) | 13,606 | 148,303 | ||||||
CLP Holdings Ltd. | 49,500 | 522,205 | ||||||
Contact Energy Ltd. | 14,361 | 51,368 | ||||||
Direct Energie | 336 | 14,434 | ||||||
DONG Energy A/S(c) | 4,984 | 196,301 | ||||||
EDP – Energias de Portugal SA | 124,807 | 411,803 | ||||||
Electricite de France SA | 16,613 | 138,684 | ||||||
Elia System Operator SA/NV | 1,045 | 55,418 | ||||||
Emera, Inc. | 3,960 | 136,846 | ||||||
Endesa SA | 9,128 | 215,051 | ||||||
Enel SpA | 338,514 | 1,608,679 | ||||||
EVN AG | 2,240 | 29,649 | ||||||
Fortis, Inc. | 10,230 | 332,346 |
Shares | Value | |||||||
Electric Utilities – (continued) | ||||||||
Fortum OYJ | 11,352 | $ | 165,153 | |||||
Genesis Energy Ltd. | 13,435 | 19,693 | ||||||
HK Electric Investments & HK Electric Investments Ltd.(a) (c) | 61,500 | 54,403 | ||||||
Hokkaido Electric Power Co., Inc. | 7,400 | 53,706 | ||||||
Hokuriku Electric Power Co.(a) | 6,600 | 60,985 | ||||||
Hydro One Ltd.(c) | 3,520 | 61,889 | ||||||
Iberdrola SA | 154,487 | 1,110,645 | ||||||
Infratil Ltd. | 11,550 | 23,393 | ||||||
Kansai Electric Power Co., Inc. (The) | 33,900 | 458,305 | ||||||
Kyushu Electric Power Co., Inc.(a) | 19,900 | 214,585 | ||||||
Mercury NZ Ltd. | 17,270 | 38,119 | ||||||
Okinawa Electric Power Co., Inc. (The) | 6,775 | 165,257 | ||||||
Power Assets Holdings Ltd. | 28,000 | 252,007 | ||||||
Red Electrica Corp. SA | 10,824 | 210,984 | ||||||
Romande Energie Holding SA (Registered) | 56 | 72,514 | ||||||
Shikoku Electric Power Co., Inc.(a) | 10,500 | 126,128 | ||||||
Spark Infrastructure Group | 37,950 | 70,668 | ||||||
SSE plc | 44,421 | 799,403 | ||||||
Terna Rete Elettrica Nazionale SpA | 34,783 | 175,370 | ||||||
Tohoku Electric Power Co., Inc. | 24,400 | 325,275 | ||||||
Tokyo Electric Power Co. Holdings, Inc.* | 33,115 | 128,634 | ||||||
Trustpower Ltd. | 58,298 | 192,118 | ||||||
Verbund AG(a) | 2,574 | 42,745 | ||||||
9,395,392 | ||||||||
Electrical Equipment – 1.0% | ||||||||
ABB Ltd. (Registered) | 50,820 | 1,243,634 | ||||||
Areva SA* | 2,979 | 13,858 | ||||||
Daihen Corp. | 82,000 | 520,086 | ||||||
Fagerhult AB* | 979 | 40,410 | ||||||
Fuji Electric Co. Ltd. | 24,000 | 131,551 | ||||||
Fujikura Ltd. | 12,500 | 93,859 | ||||||
Furukawa Electric Co. Ltd. | 2,900 | 117,332 | ||||||
Futaba Corp. | 3,400 | 61,033 | ||||||
Gamesa Corp. Tecnologica SA | 13,606 | 293,880 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 87 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – (continued) | ||||||||
GS Yuasa Corp. | 21,000 | $ | 97,210 | |||||
Huber & Suhner AG (Registered) | 715 | 48,124 | ||||||
Johnson Electric Holdings Ltd. | 10,500 | 32,333 | ||||||
Legrand SA | 6,666 | 431,399 | ||||||
Mabuchi Motor Co. Ltd. | 2,000 | 112,856 | ||||||
Melrose Industries plc | 69,935 | 213,981 | ||||||
Mitsubishi Electric Corp. | 54,400 | 758,389 | ||||||
Nexans SA* | 1,320 | 73,380 | ||||||
Nidec Corp. | 6,955 | 637,661 | ||||||
Nissin Electric Co. Ltd. | 400 | 4,730 | ||||||
Nitto Kogyo Corp. | 23,700 | 341,244 | ||||||
Nordex SE* (a) | 1,320 | 19,894 | ||||||
OSRAM Licht AG | 1,816 | 121,599 | ||||||
Philips Lighting NV* (c) | 6,525 | 220,694 | ||||||
Prysmian SpA | 6,939 | 200,316 | ||||||
Schneider Electric SE | 15,378 | 1,214,076 | ||||||
SGL Carbon SE* | 1,788 | 18,074 | ||||||
Somfy SA | 55 | 26,592 | ||||||
TKH Group NV, CVA* | 2,194 | 100,822 | ||||||
Ushio, Inc. | 5,900 | 74,101 | ||||||
Vestas Wind Systems A/S | 5,742 | 494,348 | ||||||
7,757,466 | ||||||||
Electronic Equipment, Instruments & Components – 1.4% | ||||||||
Ai Holdings Corp. | 800 | 19,679 | ||||||
Alps Electric Co. Ltd. | 8,000 | 235,041 | ||||||
ALSO Holding AG (Registered)* | 2,376 | 298,596 | ||||||
Amano Corp. | 2,600 | 55,513 | ||||||
Anritsu Corp. | 6,200 | 50,114 | ||||||
Azbil Corp. | 300 | 10,092 | ||||||
Barco NV | 440 | 43,319 | ||||||
Canon Electronics, Inc. | 11,300 | 210,247 | ||||||
Celestica, Inc.* | 87,798 | 1,248,937 | ||||||
Citizen Watch Co. Ltd. | 8,700 | 57,677 | ||||||
CONEXIO Corp. | 15,300 | 234,297 | ||||||
Dexerials Corp. | 5,600 | 50,338 | ||||||
Electrocomponents plc | 22,775 | 152,924 | ||||||
Enplas Corp. | 9,000 | 245,851 | ||||||
Evertz Technologies Ltd. | 2,092 | 25,857 | ||||||
FIH Mobile Ltd. | 77,000 | 26,434 | ||||||
Fingerprint Cards AB, Class B(a) | 5,880 | 23,421 | ||||||
GCL New Energy Holdings Ltd.* | 224,000 | 11,664 |
Shares | Value | |||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Halma plc | 8,512 | $ | 115,961 | |||||
Hamamatsu Photonics KK | 3,400 | 99,892 | ||||||
Hexagon AB, Class B(a) | 6,666 | 290,360 | ||||||
Hirose Electric Co. Ltd. | 745 | 100,051 | ||||||
Hitachi High-Technologies Corp. | 1,700 | 67,789 | ||||||
Hitachi Ltd. | 203,000 | 1,120,170 | ||||||
Horiba Ltd. | 300 | 17,682 | ||||||
Hosiden Corp. | 2,700 | 29,720 | ||||||
Ibiden Co. Ltd. | 5,100 | 89,674 | ||||||
IDEX ASA* (a) | 19,990 | 19,975 | ||||||
Inficon Holding AG (Registered)* | 110 | 57,738 | ||||||
Ingenico Group SA | 1,400 | 126,810 | ||||||
Iriso Electronics Co. Ltd. | 600 | 37,947 | ||||||
Japan Aviation Electronics Industry Ltd. | 2,044 | 27,945 | ||||||
Japan Display, Inc.* (a) | 269,600 | 609,484 | ||||||
Jenoptik AG | 2,585 | 69,543 | ||||||
Keyence Corp. | 2,100 | 843,994 | ||||||
Kudelski SA | 1,705 | 29,546 | ||||||
Kyocera Corp. | 10,300 | 583,054 | ||||||
Lagercrantz Group AB, Class B | 3,520 | 38,460 | ||||||
LEM Holding SA (Registered) | 27 | 27,584 | ||||||
Macnica Fuji Electronics Holdings, Inc. | 26,400 | 374,673 | ||||||
Murata Manufacturing Co. Ltd. | 5,000 | 670,360 | ||||||
Mycronic AB | 3,903 | 38,568 | ||||||
Nichicon Corp. | 5,100 | 48,452 | ||||||
Nippon Ceramic Co. Ltd. | 900 | 19,127 | ||||||
Nippon Electric Glass Co. Ltd. | 6,000 | 37,194 | ||||||
Nippon Signal Co. Ltd.(a) | 44,100 | 422,524 | ||||||
Nohmi Bosai Ltd. | 2,000 | 27,756 | ||||||
Oki Electric Industry Co. Ltd. | 2,800 | 41,798 | ||||||
Omron Corp. | 6,900 | 288,764 | ||||||
Optex Group Co. Ltd. | 500 | 13,860 | ||||||
Renishaw plc | 1,617 | 71,442 | ||||||
Ryosan Co. Ltd. | 1,400 | 45,779 | ||||||
Shimadzu Corp. | 7,000 | 118,687 | ||||||
Siix Corp. | 14,214 | 566,800 | ||||||
Spectris plc | 2,750 | 98,196 | ||||||
Taiyo Yuden Co. Ltd. | 2,500 | 30,479 | ||||||
TDK Corp. | 3,400 | 210,460 |
See Accompanying Notes to the Financial Statements.
88 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Topcon Corp. | 2,200 | $ | 38,821 | |||||
Truly International Holdings | 1,076,000 | 365,236 | ||||||
V Technology Co. Ltd. | 200 | 30,699 | ||||||
Venture Corp. Ltd. | 10,500 | 91,651 | ||||||
Yaskawa Electric Corp. | 5,500 | 105,046 | ||||||
Yokogawa Electric Corp. | 8,000 | 123,513 | ||||||
11,283,265 | ||||||||
Energy Equipment & Services – 1.1% | ||||||||
Aker Solutions ASA* | 7,535 | 43,100 | ||||||
Amec Foster Wheeler plc | 12,363 | 86,851 | ||||||
Bourbon Corp.(a) | 22,007 | 248,033 | ||||||
Canadian Energy Services & Technology Corp. | 165,990 | 783,029 | ||||||
Enerflex Ltd. | 3,685 | 51,854 | ||||||
Ensign Energy Services, Inc. | 88,242 | 489,839 | ||||||
Fugro NV, CVA* | 45,123 | 665,311 | ||||||
Hunting plc* | 107,448 | 781,936 | ||||||
John Wood Group plc | 14,322 | 140,728 | ||||||
Modec, Inc. | 13,200 | 277,926 | ||||||
Mullen Group Ltd.(a) | 4,455 | 48,776 | ||||||
Ocean Yield ASA(a) | 7,224 | 54,392 | ||||||
Pason Systems, Inc. | 3,018 | 44,741 | ||||||
Petrofac Ltd. | 11,880 | 125,187 | ||||||
Petroleum Geo-Services ASA* (a) | 207,702 | 490,251 | ||||||
Precision Drilling Corp.* | 207,966 | 825,902 | ||||||
Saipem SpA* | 70,473 | 30,359 | ||||||
SBM Offshore NV | 8,756 | 144,214 | ||||||
Schoeller-Bleckmann Oilfield Equipment AG(a) | 202 | 14,109 | ||||||
Seadrill Ltd.* (a) | 10,883 | 7,507 | ||||||
Secure Energy Services, Inc. | 6,100 | 39,661 | ||||||
ShawCor Ltd. | 2,274 | 56,962 | ||||||
Subsea 7 SA(a) | 10,466 | 173,486 | ||||||
Tecnicas Reunidas SA(a) | 25,278 | 1,000,587 | ||||||
Tenaris SA | 12,210 | 191,198 | ||||||
TGS Nopec Geophysical Co. ASA | 2,456 | 53,785 | ||||||
Transocean Ltd.* (a) | 16,800 | 185,304 |
Shares | Value | |||||||
Energy Equipment & Services – (continued) | ||||||||
Vallourec SA* (a) | 268,165 | $ | 1,717,651 | |||||
WorleyParsons Ltd.* | 14,224 | 120,416 | ||||||
8,893,095 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.6% | ||||||||
Abacus Property Group | 212,945 | 549,416 | ||||||
Activia Properties, Inc. | 15 | 71,454 | ||||||
Advance Residence Investment Corp. | 41 | 107,990 | ||||||
Aedifica SA | 1,145 | 89,973 | ||||||
AEON REIT Investment Corp.(a) | 56 | 61,240 | ||||||
ALE Property Group | 9,405 | 33,269 | ||||||
Allied Properties REIT | 122 | 3,268 | ||||||
alstria office REIT-AG* | 6,756 | 89,313 | ||||||
Altarea SCA* | 110 | 22,178 | ||||||
Argosy Property Ltd. | 94,153 | 65,287 | ||||||
Artis REIT | 55,214 | 548,384 | ||||||
Ascendas REIT | 47,600 | 87,183 | ||||||
Ascott Residence Trust(a) | 70,564 | 55,282 | ||||||
Assura plc | 91,231 | 72,293 | ||||||
Aventus Retail Property Fund Ltd. | 170,214 | 301,688 | ||||||
Axiare Patrimonio SOCIMI SA | 3,200 | 53,106 | ||||||
Befimmo SA | 1,143 | 66,652 | ||||||
Beni Stabili SpA SIIQ* | 745,010 | 472,975 | ||||||
Big Yellow Group plc | 8,675 | 86,868 | ||||||
Boardwalk REIT | 307 | 10,340 | ||||||
British Land Co. plc (The) | 26,862 | 228,152 | ||||||
BWP Trust | 44,067 | 96,230 | ||||||
Canadian Apartment Properties REIT | 444 | 10,999 | ||||||
Canadian REIT | 100 | 3,612 | ||||||
CapitaLand Commercial Trust(a) | 46,800 | 54,411 | ||||||
CapitaLand Mall Trust | 60,000 | 84,568 | ||||||
CapitaLand Retail China Trust | 27,662 | 31,468 | ||||||
CDL Hospitality Trusts | 37,000 | 41,032 | ||||||
Champion REIT | 51,000 | 33,180 | ||||||
Charter Hall Group(b) | 13,598 | 57,660 | ||||||
Charter Hall Retail REIT(a) | 36,074 | 120,591 | ||||||
Choice Properties REIT | 3,465 | 35,251 | ||||||
Cofinimmo SA | 440 | 53,232 | ||||||
Comforia Residential REIT, Inc. | 33 | 73,064 | ||||||
Cominar REIT | 1,600 | 16,558 | ||||||
Crombie REIT | 1,400 | 14,847 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 89 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Cromwell Property Group | 929,179 | $ | 674,040 | |||||
CT REIT | 2,800 | 30,001 | ||||||
Daiwa House REIT Investment Corp. | 42 | 106,177 | ||||||
Daiwa Office Investment Corp. | 5 | 24,356 | ||||||
Derwent London plc | 2,352 | 89,583 | ||||||
Dexus Property Group | 43,494 | 331,775 | ||||||
Dream Global REIT | 46,243 | 334,825 | ||||||
Dream Office REIT | 35,577 | 505,567 | ||||||
Eurocommercial Properties NV, CVA | 2,107 | 81,853 | ||||||
Far East Hospitality Trust | 53,300 | 22,880 | ||||||
First REIT | 26,300 | 25,402 | ||||||
Folkestone Education Trust | 7,996 | 17,341 | ||||||
Fonciere Des Regions | 1,421 | 126,794 | ||||||
Fortune REIT | 21,000 | 24,463 | ||||||
Frasers Centrepoint Trust | 25,000 | 37,741 | ||||||
Frasers Commercial Trust | 23,000 | 22,051 | ||||||
Frasers Hospitality Trust | 39,200 | 20,474 | ||||||
Frasers Logistics & Industrial Trust | 113,800 | 82,234 | ||||||
Frontier Real Estate Investment Corp. | 11 | 48,008 | ||||||
Fukuoka REIT Corp. | 16 | 25,262 | ||||||
Gecina SA | 990 | 140,795 | ||||||
Global One Real Estate Investment Corp. | 12 | 41,338 | ||||||
GLP J-Reit* | 63 | 71,042 | ||||||
Goodman Group | 40,659 | 246,599 | ||||||
Goodman Property Trust | 19,085 | 15,985 | ||||||
GPT Group (The) | 47,718 | 187,351 | ||||||
Granite REIT | 16,118 | 577,150 | ||||||
Great Portland Estates plc | 8,250 | 73,860 | ||||||
Green REIT plc | 67,088 | 99,721 | ||||||
H&R REIT | 4,884 | 82,728 | ||||||
Hamborner REIT AG* | 4,592 | 48,184 | ||||||
Hammerson plc | 20,328 | 154,509 | ||||||
Hankyu Reit, Inc. | 40 | 52,642 | ||||||
Hansteen Holdings plc(a) | 68,709 | 110,049 | ||||||
Heiwa Real Estate REIT, Inc. | 73 | 55,272 | ||||||
Hibernia REIT plc | 522,060 | 724,834 | ||||||
Hispania Activos Inmobiliarios SOCIMI SA | 5,003 | 75,510 |
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Hoshino Resorts REIT, Inc. | 11 | $ | 55,854 | |||||
Hulic Reit, Inc. | 16 | 25,693 | ||||||
ICADE | 687 | 50,999 | ||||||
Ichigo Office REIT Investment | 94 | 53,211 | ||||||
Industrial & Infrastructure Fund Investment Corp. | 10 | 44,137 | ||||||
Intu Properties plc(a) | 13,213 | 47,129 | ||||||
Invesco Office J-Reit, Inc. | 594 | 523,287 | ||||||
Investa Office Fund | 15,730 | 55,877 | ||||||
Invincible Investment Corp. | 113 | 43,286 | ||||||
Japan Excellent, Inc. | 80 | 93,658 | ||||||
Japan Hotel REIT Investment Corp. | 77 | 52,429 | ||||||
Japan Logistics Fund, Inc. | 15 | 32,013 | ||||||
Japan Prime Realty Investment Corp. | 18 | 67,579 | ||||||
Japan Real Estate Investment Corp. | 30 | 157,980 | ||||||
Japan Rental Housing Investments, Inc. | 34 | 24,432 | ||||||
Japan Retail Fund Investment Corp. | 52 | 101,602 | ||||||
Kenedix Office Investment Corp. | 9 | 51,027 | ||||||
Kenedix Residential Investment Corp. | 25 | 64,210 | ||||||
Kenedix Retail REIT Corp.(a) | 35 | 76,267 | ||||||
Keppel DC REIT | 584,240 | 518,321 | ||||||
Keppel REIT | 47,833 | 36,276 | ||||||
Kiwi Property Group Ltd. | 33,082 | 32,365 | ||||||
Klepierre | 6,204 | 243,481 | ||||||
Land Securities Group plc | 20,988 | 300,315 | ||||||
Link REIT | 49,301 | 354,661 | ||||||
Lippo Malls Indonesia Retail Trust | 1,342,400 | 408,185 | ||||||
LondonMetric Property plc(a) | 37,664 | 82,058 | ||||||
Mapletree Commercial Trust | 32,090 | 36,620 | ||||||
Mapletree Greater China Commercial Trust | 49,500 | 37,894 | ||||||
Mapletree Industrial Trust | 32,742 | 41,932 | ||||||
Mapletree Logistics Trust | 65,567 | 53,009 | ||||||
MCUBS MidCity Investment Corp. | 20 | 59,747 | ||||||
Mercialys SA | 3,271 | 63,706 | ||||||
Merlin Properties Socimi SA | 10,748 | 127,164 | ||||||
Mirvac Group | 166,320 | 282,348 |
See Accompanying Notes to the Financial Statements.
90 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Morguard REIT | 21,516 | $ | 240,763 | |||||
Mori Hills REIT Investment Corp. | 36 | 46,764 | ||||||
Mori Trust Sogo Reit, Inc. | 15 | 23,428 | ||||||
National Storage REIT | 18,872 | 21,029 | ||||||
NewRiver REIT plc | 13,804 | 62,131 | ||||||
Nippon Accommodations Fund, Inc. | 8 | 34,377 | ||||||
Nippon Building Fund, Inc. | 33 | 175,554 | ||||||
Nippon Prologis REIT, Inc. | 41 | 86,693 | ||||||
NIPPON REIT Investment Corp. | 33 | 84,757 | ||||||
Nomura Real Estate Master Fund, Inc. | 87 | 125,423 | ||||||
Northview Apartment REIT | 17,358 | 288,813 | ||||||
Orix JREIT, Inc. | 58 | 91,992 | ||||||
OUE Hospitality Trust | 60,500 | 31,165 | ||||||
Parkway Life REIT | 12,500 | 22,895 | ||||||
Precinct Properties New Zealand Ltd. | 22,735 | 18,809 | ||||||
Premier Investment Corp. | 55 | 59,159 | ||||||
Primary Health Properties plc | 43,736 | 64,081 | ||||||
Property for Industry Ltd.(a) | 51,499 | 57,631 | ||||||
Prosperity REIT | 81,000 | 32,910 | ||||||
Pure Industrial Real Estate Trust | 96,039 | 458,666 | ||||||
Redefine International plc(a) | 111,537 | 55,195 | ||||||
Regal REIT | 627,000 | 183,806 | ||||||
Reit 1 Ltd. | 118,536 | 401,151 | ||||||
Retail Estates NV | 555 | 45,328 | ||||||
RioCan REIT | 3,135 | 59,453 | ||||||
Safestore Holdings plc | 12,195 | 63,898 | ||||||
Scentre Group | 135,828 | 437,805 | ||||||
Segro plc | 19,958 | 125,411 | ||||||
Sekisui House Reit, Inc. | 55 | 70,212 | ||||||
Sekisui House SI Residential Investment Corp. | 55 | 58,025 | ||||||
Shaftesbury plc | 4,592 | 55,369 | ||||||
Shopping Centres Australasia Property Group | 33,990 | 58,719 | ||||||
Smart REIT | 780 | 18,460 | ||||||
SPH REIT | 44,800 | 31,572 | ||||||
Starhill Global REIT | 152,700 | 84,123 | ||||||
Stockland | 60,925 | 220,979 | ||||||
Stride Property Group | 23,842 | 28,645 |
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Sunlight REIT | 55,000 | $ | 34,156 | |||||
Suntec REIT | 57,400 | 72,689 | ||||||
Terreis | 968 | 39,740 | ||||||
Tokyu REIT, Inc. | 40 | 49,628 | ||||||
Tritax Big Box REIT plc | 95,602 | 173,159 | ||||||
Unibail-Rodamco SE | 2,706 | 664,333 | ||||||
UNITE Group plc (The) | 9,625 | 80,567 | ||||||
United Urban Investment Corp. | 84 | 126,976 | ||||||
Vastned Retail NV | 1,717 | 64,122 | ||||||
Vicinity Centres | 91,914 | 197,965 | ||||||
Vital Healthcare Property Trust | 43,976 | 66,422 | ||||||
Viva Energy REIT | 28,511 | 51,386 | ||||||
Warehouses De Pauw, CVA | 869 | 83,123 | ||||||
Wereldhave Belgium NV | 224 | 24,390 | ||||||
Wereldhave NV | 28,334 | 1,304,520 | ||||||
Westfield Corp. | 51,965 | 352,867 | ||||||
Workspace Group plc | 8,939 | 99,978 | ||||||
21,001,374 | ||||||||
Food & Staples Retailing – 1.5% | ||||||||
Aeon Co. Ltd. | 21,213 | 314,665 | ||||||
Ain Holdings, Inc. | 600 | 41,554 | ||||||
Alimentation Couche-Tard, Inc., Class B | 11,154 | 512,139 | ||||||
Arcs Co. Ltd. | 2,918 | 62,564 | ||||||
Axfood AB | 352 | 5,589 | ||||||
Axial Retailing, Inc. | 1,100 | 42,088 | ||||||
Belc Co. Ltd. | 500 | 22,248 | ||||||
Booker Group plc | 38,555 | 96,768 | ||||||
Carrefour SA | 22,836 | 537,755 | ||||||
Casino Guichard Perrachon SA | 2,772 | 166,927 | ||||||
Cawachi Ltd. | 9,600 | 252,165 | ||||||
cocokara fine, Inc. | 16,700 | 789,531 | ||||||
Colruyt SA | 1,430 | 73,414 | ||||||
Cosmos Pharmaceutical Corp. | 100 | 20,248 | ||||||
Create SD Holdings Co. Ltd. | 2,000 | 46,972 | ||||||
Daikokutenbussan Co. Ltd. | 400 | 19,126 | ||||||
Dairy Farm International Holdings Ltd. | 4,500 | 40,050 | ||||||
Distribuidora Internacional de Alimentacion SA | 23,296 | 138,637 | ||||||
Empire Co. Ltd., Class A | 5,720 | 87,977 | ||||||
FamilyMart UNY Holdings Co. Ltd. | 2,137 | 120,778 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 91 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
George Weston Ltd. | 1,043 | $ | 93,514 | |||||
Greggs plc | 5,530 | 76,910 | ||||||
Heiwado Co. Ltd. | 1,200 | 25,740 | ||||||
ICA Gruppen AB | 1,931 | 65,946 | ||||||
Inageya Co. Ltd. | 1,798 | 25,776 | ||||||
Itochu-Shokuhin Co. Ltd. | 400 | 16,722 | ||||||
J Sainsbury plc | 82,082 | 292,457 | ||||||
Jean Coutu Group PJC, Inc. (The), Class A | 3,343 | 54,620 | ||||||
Jeronimo Martins SGPS SA | 6,186 | 113,506 | ||||||
Kato Sangyo Co. Ltd. | 21,300 | 522,803 | ||||||
Kesko OYJ, Class A | 562 | 26,273 | ||||||
Kesko OYJ, Class B | 2,090 | 97,909 | ||||||
Kobe Bussan Co. Ltd. | 400 | 14,730 | ||||||
Koninklijke Ahold Delhaize NV(a) | 33,727 | 698,548 | ||||||
Kusuri no Aoki Holdings Co. Ltd. | 600 | 25,917 | ||||||
Lawson, Inc.(a) | 1,500 | 99,578 | ||||||
Loblaw Cos. Ltd. | 5,874 | 329,121 | ||||||
Madison Wine Holdings Ltd.* | 44,000 | 10,919 | ||||||
MARR SpA | 1,155 | 27,884 | ||||||
Matsumotokiyoshi Holdings Co. Ltd. | 1,800 | 90,266 | ||||||
Metcash Ltd.* (a) | 686,937 | 1,104,510 | ||||||
METRO AG(a) | 5,527 | 181,823 | ||||||
Metro, Inc. | 6,138 | 210,002 | ||||||
Ministop Co. Ltd. | 1,000 | 19,126 | ||||||
Nihon Chouzai Co. Ltd. | 6,600 | 231,506 | ||||||
North West Co., Inc. (The) | 2,420 | 56,991 | ||||||
Okuwa Co. Ltd. | 2,000 | 21,136 | ||||||
Olam International Ltd. | 27,500 | 37,580 | ||||||
Qol Co. Ltd. | 1,500 | 20,481 | ||||||
Rallye SA | 15,246 | 333,039 | ||||||
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | 375 | 17,922 | ||||||
Seven & i Holdings Co. Ltd. | 20,100 | 849,296 | ||||||
Sheng Siong Group Ltd. | 51,500 | 36,109 | ||||||
Shufersal Ltd. | 3,578 | 17,644 | ||||||
Sligro Food Group NV | 1,155 | 46,958 | ||||||
Sogo Medical Co. Ltd. | 7,600 | 299,309 | ||||||
Sonae SGPS SA | 18,183 | 18,652 |
Shares | Value | |||||||
Food & Staples Retailing – (continued) | ||||||||
Sugi Holdings Co. Ltd. | 800 | $ | 39,688 | |||||
Sundrug Co. Ltd. | 1,600 | 56,123 | ||||||
Tesco plc* | 204,798 | 485,534 | ||||||
Tsuruha Holdings, Inc. | 900 | 91,235 | ||||||
Valor Holdings Co. Ltd. | 2,300 | 54,967 | ||||||
Welcia Holdings Co. Ltd. | 1,800 | 57,971 | ||||||
Wesfarmers Ltd. | 29,238 | 940,222 | ||||||
Wm Morrison Supermarkets plc(a) | 105,336 | 326,932 | ||||||
Woolworths Ltd. | 32,964 | 662,649 | ||||||
Yaoko Co. Ltd. | 1,800 | 69,759 | ||||||
Yokohama Reito Co. Ltd. | 2,800 | 28,284 | ||||||
12,415,782 | ||||||||
Food Products – 2.4% | ||||||||
a2 Milk Co. Ltd.* | 42,985 | 99,748 | ||||||
AAK AB | 834 | 59,667 | ||||||
AGT Food & Ingredients, Inc. | 764 | 17,618 | ||||||
Ajinomoto Co., Inc. | 16,800 | 326,897 | ||||||
Ariake Japan Co. Ltd. | 800 | 50,597 | ||||||
Aryzta AG* | 4,356 | 141,386 | ||||||
Associated British Foods plc | 8,976 | 326,317 | ||||||
Austevoll Seafood ASA | 4,125 | 33,225 | ||||||
Australian Agricultural Co. Ltd.* | 12,274 | 15,834 | ||||||
Bakkafrost P/F | 1,100 | 37,367 | ||||||
Barry Callebaut AG (Registered)* | 38 | 52,145 | ||||||
Bega Cheese Ltd.(a) | 7,095 | 31,836 | ||||||
Bell AG (Registered) | 168 | 72,106 | ||||||
Bellamy’s Australia Ltd.(a) | 2,897 | 11,136 | ||||||
Bonduelle SCA | 10,956 | 379,391 | ||||||
Bourbon Corp. | 13,200 | 314,872 | ||||||
Bumitama Agri Ltd. | 91,900 | 48,656 | ||||||
Calbee, Inc. | 3,200 | 111,671 | ||||||
Chocoladefabriken Lindt & Spruengli AG | 37 | 207,961 | ||||||
Chocoladefabriken Lindt & Spruengli AG (Registered) | 4 | 265,649 | ||||||
Clearwater Seafoods, Inc. | 2,576 | 19,933 | ||||||
Cloetta AB, Class B | 9,240 | 37,357 | ||||||
Costa Group Holdings Ltd. | 13,860 | 45,607 | ||||||
CP Pokphand Co. Ltd. | 317,384 | 27,341 | ||||||
Cranswick plc | 2,239 | 77,690 | ||||||
Dairy Crest Group plc(a) | 8,688 | 64,518 |
See Accompanying Notes to the Financial Statements.
92 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Danone SA | 15,708 | $ | 1,097,813 | |||||
Delfi Ltd. | 12,700 | 20,808 | ||||||
DyDo Group Holdings, Inc. | 100 | 4,809 | ||||||
Ebro Foods SA | 1,485 | 33,199 | ||||||
Emmi AG (Registered)* | 41 | 29,943 | ||||||
Ezaki Glico Co. Ltd. | 1,300 | 68,458 | ||||||
First Resources Ltd. | 12,400 | 16,634 | ||||||
ForFarmers NV | 26,814 | 252,105 | ||||||
Freedom Foods Group Ltd. | 787 | 2,531 | ||||||
Fuji Oil Holdings, Inc. | 3,400 | 79,700 | ||||||
Fujicco Co. Ltd. | 2,000 | 45,734 | ||||||
Glanbia plc | 5,351 | 104,419 | ||||||
Golden Agri-Resources Ltd.(a) | 290,200 | 74,746 | ||||||
GrainCorp Ltd., Class A | 5,122 | 34,168 | ||||||
Greencore Group plc | 73,971 | 218,196 | ||||||
Grieg Seafood ASA | 2,105 | 16,574 | ||||||
Hokuto Corp. | 700 | 13,137 | ||||||
House Foods Group, Inc. | 2,400 | 53,352 | ||||||
Itoham Yonekyu Holdings, Inc. | 6,500 | 60,119 | ||||||
Japfa Ltd. | 232,800 | 100,768 | ||||||
Kagome Co. Ltd. | 500 | 13,614 | ||||||
Kameda Seika Co. Ltd. | 600 | 27,290 | ||||||
Kenko Mayonnaise Co. Ltd. | 600 | 15,152 | ||||||
Kerry Group plc, Class A | 4,092 | 334,288 | ||||||
Kewpie Corp. | 1,800 | 45,763 | ||||||
Kikkoman Corp. | 4,000 | 122,903 | ||||||
Kotobuki Spirits Co. Ltd. | 1,000 | 26,958 | ||||||
KWS Saat SE | 60 | 21,333 | ||||||
LDC SA | 2,376 | 250,145 | ||||||
Leroy Seafood Group ASA | 935 | 47,107 | ||||||
Lotus Bakeries | 13 | 32,701 | ||||||
Maple Leaf Foods, Inc. | 1,870 | 46,733 | ||||||
Marine Harvest ASA* | 12,442 | 207,403 | ||||||
Marudai Food Co. Ltd. | 4,000 | 18,301 | ||||||
Maruha Nichiro Corp. | 4,400 | 125,720 | ||||||
Megmilk Snow Brand Co. Ltd. | 214 | 6,383 | ||||||
MEIJI Holdings Co. Ltd. | 3,600 | 305,517 | ||||||
Mitsui Sugar Co. Ltd. | 3,800 | 93,645 | ||||||
Morinaga & Co. Ltd. | 1,100 | 52,005 | ||||||
Morinaga Milk Industry Co. Ltd. | 6,000 | 47,367 | ||||||
Naturex* | 590 | 53,724 | ||||||
Nestle SA (Registered) | 79,498 | 6,121,374 |
Shares | Value | |||||||
Food Products – (continued) | ||||||||
NH Foods Ltd. | 5,000 | $ | 142,191 | |||||
Nichirei Corp. | 3,500 | 87,131 | ||||||
Nippon Flour Mills Co. Ltd. | 2,500 | 37,476 | ||||||
Nippon Suisan Kaisha Ltd. | 12,100 | 58,291 | ||||||
Nisshin Oillio Group Ltd. (The) | 7,000 | 41,446 | ||||||
Nisshin Seifun Group, Inc. | 7,090 | 108,700 | ||||||
Nissin Foods Holdings Co. Ltd. | 1,500 | 85,853 | ||||||
Norway Royal Salmon ASA | 3,080 | 56,807 | ||||||
Origin Enterprises plc | 88,506 | 718,021 | ||||||
Orkla ASA | 17,952 | 162,933 | ||||||
Premium Brands Holdings Corp. | 1,100 | 68,737 | ||||||
Prima Meat Packers Ltd. | 33,000 | 152,167 | ||||||
Raisio OYJ, Class V | 4,125 | 15,632 | ||||||
Riken Vitamin Co. Ltd. | 800 | 30,214 | ||||||
S Foods, Inc.(a) | 11,100 | 346,035 | ||||||
Sakata Seed Corp. | 2,800 | 88,293 | ||||||
Salmar ASA | 1,760 | 41,850 | ||||||
Saputo, Inc. | 5,888 | 193,267 | ||||||
Savencia SA | 3,368 | 297,074 | ||||||
Schouw & Co. AB | 9,504 | 978,955 | ||||||
Showa Sangyo Co. Ltd. | 101,000 | 540,926 | ||||||
Starzen Co. Ltd. | 6,600 | 267,032 | ||||||
Strauss Group Ltd. | 952 | 16,722 | ||||||
Suedzucker AG | 1,589 | 33,975 | ||||||
Super Group Ltd.(b) | 12,000 | 11,204 | ||||||
Synlait Milk Ltd.* | 4,816 | 11,705 | ||||||
Tate & Lyle plc | 9,708 | 95,014 | ||||||
Tegel Group Holdings Ltd. | 4,144 | 3,386 | ||||||
Toyo Suisan Kaisha Ltd. | 2,800 | 104,997 | ||||||
Vilmorin & Cie SA | 4,040 | 291,941 | ||||||
Viscofan SA | 825 | 49,357 | ||||||
Vitasoy International Holdings Ltd. | 16,000 | 31,640 | ||||||
Wessanen | 3,410 | 50,928 | ||||||
WH Group Ltd.(c) | 339,500 | 303,376 | ||||||
Wilmar International Ltd. | 171,900 | 436,607 | ||||||
Yakult Honsha Co. Ltd. | 3,400 | 193,379 | ||||||
Yamazaki Baking Co. Ltd. | 3,000 | 63,219 | ||||||
19,435,645 | ||||||||
Gas Utilities – 0.4% | ||||||||
APA Group | 29,832 | 204,358 | ||||||
Gas Natural SDG SA | 15,312 | 346,152 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 93 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Gas Utilities – (continued) | ||||||||
Hong Kong & China Gas Co. Ltd. | 180,064 | $ | 359,779 | |||||
Osaka Gas Co. Ltd. | 81,000 | 303,232 | ||||||
Rubis SCA | 1,741 | 176,846 | ||||||
Saibu Gas Co. Ltd. | 33,000 | 76,083 | ||||||
Shizuoka Gas Co. Ltd. | 41,800 | 283,867 | ||||||
Superior Plus Corp. | 101,453 | 969,788 | ||||||
Toho Gas Co. Ltd. | 8,000 | 57,199 | ||||||
Tokyo Gas Co. Ltd. | 84,000 | 389,971 | ||||||
Valener, Inc. | 1,919 | 30,666 | ||||||
3,197,941 | ||||||||
Health Care Equipment & Supplies – 0.7% | ||||||||
Ambu A/S, Class B | 1,775 | 87,323 | ||||||
Ansell Ltd. | 3,438 | 61,192 | ||||||
Asahi Intecc Co. Ltd. | 2,800 | 124,338 | ||||||
BioMerieux | 275 | 54,966 | ||||||
Carl Zeiss Meditec AG | 715 | 32,483 | ||||||
Cochlear Ltd. | 1,232 | 128,879 | ||||||
Coloplast A/S, Class B | 2,706 | 231,582 | ||||||
CYBERDYNE, Inc.* (a) | 1,500 | 21,194 | ||||||
DiaSorin SpA | 869 | 65,105 | ||||||
Draegerwerk AG & Co. KGaA* | 2,100 | 164,649 | ||||||
Draegerwerk AG & Co. KGaA (Preference)* | 5,940 | 649,747 | ||||||
Eiken Chemical Co. Ltd. | 800 | 21,961 | ||||||
Elekta AB, Class B(a) | 5,796 | 60,514 | ||||||
Essilor International SA | 5,214 | 675,373 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 12,815 | 88,597 | ||||||
Fukuda Denshi Co. Ltd. | 7,763 | 468,691 | ||||||
Getinge AB, Class B | 4,824 | 94,303 | ||||||
GN Store Nord A/S | 2,532 | 65,841 | ||||||
Guerbet | 343 | 29,321 | ||||||
Hogy Medical Co. Ltd. | 600 | 38,540 | ||||||
Hoya Corp. | 9,000 | 429,856 | ||||||
ImpediMed Ltd.* | 11,592 | 6,285 | ||||||
Ion Beam Applications | 1,241 | 73,597 | ||||||
LivaNova plc* | 900 | 47,430 | ||||||
Mani, Inc. | 900 | 23,261 | ||||||
Mazor Robotics Ltd.* | 2,094 | 37,394 | ||||||
Menicon Co. Ltd. | 800 | 24,939 |
Shares | Value | |||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Nagaileben Co. Ltd. | 1,500 | $ | 34,556 | |||||
Nakanishi, Inc. | 1,700 | 66,798 | ||||||
Nanosonics Ltd.* | 13,552 | 32,026 | ||||||
Nihon Kohden Corp. | 1,200 | 27,139 | ||||||
Nikkiso Co. Ltd. | 3,000 | 30,600 | ||||||
Nipro Corp. | 5,200 | 78,837 | ||||||
Olympus Corp. | 7,700 | 296,340 | ||||||
Paramount Bed Holdings Co. Ltd. | 800 | 33,552 | ||||||
Sartorius AG (Preference) | 1,400 | 128,152 | ||||||
Sartorius Stedim Biotech | 770 | 51,626 | ||||||
Smith & Nephew plc | 23,892 | 392,561 | ||||||
Sonova Holding AG (Registered) | 1,452 | 214,566 | ||||||
Straumann Holding AG (Registered) | 189 | 99,679 | ||||||
Sysmex Corp. | 3,900 | 237,212 | ||||||
Terumo Corp. | 8,100 | 295,384 | ||||||
William Demant Holding A/S* | 2,796 | 63,986 | ||||||
Ypsomed Holding AG (Registered)* | 165 | 31,742 | ||||||
5,922,117 | ||||||||
Health Care Providers & Services – 0.5% | ||||||||
Alfresa Holdings Corp. | 5,000 | 90,204 | ||||||
Amplifon SpA | 3,837 | 48,928 | ||||||
As One Corp. | 700 | 30,990 | ||||||
Attendo AB(c) | 3,465 | 35,414 | ||||||
Australian Pharmaceutical Industries Ltd. | 14,365 | 23,957 | ||||||
BML, Inc. | 1,200 | 26,181 | ||||||
Capio AB(c) | 3,094 | 17,121 | ||||||
Celesio AG | 1,045 | 29,450 | ||||||
Chartwell Retirement Residences, REIT | 2,222 | 25,254 | ||||||
EBOS Group Ltd. | 1,980 | 24,890 | ||||||
Extendicare, Inc. | 4,950 | 36,166 | ||||||
Fagron* | 26,070 | 343,648 | ||||||
Fresenius Medical Care AG & Co. KGaA | 5,544 | 491,725 | ||||||
Fresenius SE & Co. KGaA | 10,164 | 823,576 | ||||||
Healthscope Ltd. | 34,595 | 57,177 | ||||||
Japan Lifeline Co. Ltd. | 800 | 16,055 | ||||||
Korian SA | 1,281 | 41,255 | ||||||
Lifco AB, Class B | 896 | 27,270 |
See Accompanying Notes to the Financial Statements.
94 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
Mediclinic International plc(a) | 7,920 | $ | 84,124 | |||||
Medipal Holdings Corp. | 7,100 | 117,452 | ||||||
Metlifecare Ltd. | 6,220 | 24,811 | ||||||
Miraca Holdings, Inc. | 1,200 | 55,333 | ||||||
NichiiGakkan Co. Ltd. | 9,200 | 69,741 | ||||||
NMC Health plc | 1,466 | 37,686 | ||||||
Orpea(a) | 1,116 | 113,944 | ||||||
Primary Health Care Ltd. | 36,232 | 91,856 | ||||||
Raffles Medical Group Ltd.(a) | 21,785 | 21,821 | ||||||
Ramsay Health Care Ltd. | 3,432 | 184,027 | ||||||
Regis Healthcare Ltd.(a) | 6,033 | 20,258 | ||||||
RHOEN-KLINIKUM AG(a) | 1,421 | 40,573 | ||||||
Ryman Healthcare Ltd. | 9,819 | 58,177 | ||||||
Ship Healthcare Holdings, Inc. | 3,300 | 88,724 | ||||||
Sigma Pharmaceuticals Ltd. | 49,995 | 46,736 | ||||||
Sonic Healthcare Ltd. | 9,213 | 152,199 | ||||||
Spire Healthcare Group plc(c) | 11,495 | 50,251 | ||||||
Summerset Group Holdings Ltd. | 11,337 | 40,474 | ||||||
Suzuken Co. Ltd. | 3,380 | 111,737 | ||||||
Toho Holdings Co. Ltd. | 4,200 | 91,181 | ||||||
Tokai Corp. | 13,200 | 487,288 | ||||||
Town Health International Medical Group Ltd. | 286,000 | 45,230 | ||||||
Tsukui Corp. | 2,800 | 15,875 | ||||||
UDG Healthcare plc | 11,330 | 109,497 | ||||||
Vital KSK Holdings, Inc. | 2,400 | 21,143 | ||||||
4,369,399 | ||||||||
Health Care Technology – 0.0%(d) | ||||||||
CompuGroup Medical SE | 624 | 30,714 | ||||||
M3, Inc. | 4,300 | 109,901 | ||||||
Orion Health Group Ltd.* | 4,984 | 4,790 | ||||||
145,405 | ||||||||
Hotels, Restaurants & Leisure – 1.7% | ||||||||
888 Holdings plc | 8,450 | 30,555 | ||||||
Accor SA* (a) | 4,686 | 213,527 | ||||||
Ainsworth Game Technology Ltd. | 76,068 | 105,811 | ||||||
Amaya, Inc.* | 6,644 | 117,836 | ||||||
Arcland Service Holdings Co. Ltd. | 700 | 19,310 | ||||||
Ardent Leisure Group(a) | 21,789 | 33,079 |
Shares | Value | |||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Aristocrat Leisure Ltd. | 15,378 | $ | 225,869 | |||||
Atom Corp. | 4,200 | 27,317 | ||||||
Autogrill SpA | 5,414 | 61,550 | ||||||
Basic-Fit NV* (c) | 1,568 | 27,405 | ||||||
Betsson AB* | 5,435 | 46,464 | ||||||
Cafe de Coral Holdings Ltd. | 6,000 | 19,518 | ||||||
Carnival plc | 5,478 | 337,774 | ||||||
CHIMNEY Co. Ltd. | 800 | 20,239 | ||||||
Codere SA* (a) | 1,023,552 | 579,590 | ||||||
Colowide Co. Ltd.(a) | 3,500 | 57,459 | ||||||
Compass Group plc | 42,702 | 860,728 | ||||||
Corporate Travel Management Ltd. | 3,355 | 51,084 | ||||||
Create Restaurants Holdings, Inc. | 2,200 | 17,822 | ||||||
Crown Resorts Ltd. | 6,545 | 61,183 | ||||||
Dalata Hotel Group plc* | 10,387 | 55,876 | ||||||
DO & CO AG | 386 | 26,052 | ||||||
Domino’s Pizza Enterprises Ltd.(a) | 1,430 | 65,363 | ||||||
Domino’s Pizza Group plc | 15,021 | 64,227 | ||||||
Doutor Nichires Holdings Co. Ltd. | 2,700 | 57,260 | ||||||
Elior Group(c) | 1,760 | 43,889 | ||||||
Euro Disney SCA (Registered)* | 11,550 | 25,155 | ||||||
Evolution Gaming Group AB(c) | 1,265 | 55,858 | ||||||
Fairwood Holdings Ltd. | 6,000 | 23,298 | ||||||
Flight Centre Travel Group Ltd.(a) | 659 | 15,500 | ||||||
Fuji Kyuko Co. Ltd. | 2,000 | 18,301 | ||||||
Galaxy Entertainment Group Ltd. | 77,000 | 428,683 | ||||||
Genting Singapore plc | 144,000 | 114,874 | ||||||
GL Ltd. | 13,000 | 7,208 | ||||||
Great Canadian Gaming Corp.* | 2,860 | 50,975 | ||||||
Greene King plc | 11,144 | 108,276 | ||||||
GVC Holdings plc | 6,380 | 61,658 | ||||||
Hiday Hidaka Corp. | 960 | 20,273 | ||||||
HIS Co. Ltd.(a) | 800 | 19,076 | ||||||
Hongkong & Shanghai Hotels Ltd. (The) | 26,626 | 31,256 | ||||||
Ichibanya Co. Ltd. | 1,000 | 32,251 | ||||||
Imperial Hotel Ltd. | 1,200 | 22,715 | ||||||
InterContinental Hotels Group plc | 5,951 | 315,355 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 95 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
International Game Technology plc(a) | 6,600 | $ | 146,520 | |||||
J D Wetherspoon plc | 3,795 | 48,828 | ||||||
Kappa Create Co. Ltd. | 1,700 | 19,338 | ||||||
Kindred Group plc, SDR | 4,675 | 48,493 | ||||||
Kingston Financial Group Ltd.(a) | 114,000 | 39,429 | ||||||
Kisoji Co. Ltd. | 900 | 21,089 | ||||||
KOMEDA Holdings Co. Ltd. | 1,200 | 20,702 | ||||||
Kura Corp.(a) | 500 | 20,589 | ||||||
Kyoritsu Maintenance Co. Ltd. | 1,600 | 46,721 | ||||||
Ladbrokes Coral Group plc | 39,340 | 66,623 | ||||||
Macau Legend Development Ltd.* | 172,000 | 31,403 | ||||||
Mandarin Oriental International Ltd. | 8,000 | 11,440 | ||||||
Mantra Group Ltd.(a) | 13,420 | 28,302 | ||||||
Marston’s plc | 409,609 | 757,272 | ||||||
Matsuya Foods Co. Ltd. | 400 | 15,125 | ||||||
McDonald’s Holdings Co. Japan Ltd. | 800 | 24,652 | ||||||
Melco International Development Ltd. | 21,000 | 43,201 | ||||||
Melia Hotels International SA | 2,585 | 38,368 | ||||||
Merlin Entertainments plc(c) | 13,889 | 90,833 | ||||||
MGM China Holdings Ltd. | 13,600 | 30,986 | ||||||
Millennium & Copthorne Hotels plc | 1,958 | 11,399 | ||||||
Miramar Hotel & Investment | 16,000 | 34,849 | ||||||
Mitchells & Butlers plc | 152,891 | 524,375 | ||||||
MOS Food Services, Inc. | 2,100 | 65,843 | ||||||
MTY Food Group, Inc. | 600 | 20,572 | ||||||
NagaCorp Ltd. | 994,000 | 550,834 | ||||||
NH Hotel Group SA* | 12,299 | 63,684 | ||||||
Ohsho Food Service Corp. | 1,504 | 56,061 | ||||||
Oriental Land Co. Ltd. | 6,600 | 378,936 | ||||||
OUE Ltd. | 21,000 | 30,801 | ||||||
Paddy Power Betfair plc | 2,254 | 251,095 | ||||||
Pandox AB | 2,365 | 39,716 | ||||||
Parques Reunidos Servicios Centrales SAU* (c) | 34,848 | 615,892 | ||||||
Plenus Co. Ltd. | 1,000 | 20,938 | ||||||
Rank Group plc | 3,884 | 10,743 |
Shares | Value | |||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Resorttrust, Inc. | 1,800 | $ | 30,972 | |||||
Restaurant Brands International, Inc. | 2,915 | 163,349 | ||||||
Restaurant Brands International, Inc.* | 3,458 | 193,777 | ||||||
Restaurant Brands New Zealand Ltd. | 6,220 | 22,718 | ||||||
Restaurant Group plc (The) | 141,702 | 640,728 | ||||||
Retail Food Group Ltd.(a) | 7,796 | 31,833 | ||||||
Rezidor Hotel Group AB* | 3,130 | 11,665 | ||||||
Ringer Hut Co. Ltd. | 1,700 | 34,848 | ||||||
Round One Corp. | 2,700 | 23,059 | ||||||
Royal Holdings Co. Ltd. | 1,600 | 31,363 | ||||||
Saizeriya Co. Ltd. | 1,300 | 36,503 | ||||||
Sands China Ltd. | 58,000 | 263,245 | ||||||
Scandic Hotels Group AB* (c) | 31,812 | 358,365 | ||||||
Shangri-La Asia Ltd.(a) | 32,000 | 45,834 | ||||||
SJM Holdings Ltd. | 64,672 | 62,780 | ||||||
SkiStar AB | 1,110 | 23,755 | ||||||
SKYCITY Entertainment Group Ltd. | 15,031 | 44,993 | ||||||
Skylark Co. Ltd. | 3,700 | 55,963 | ||||||
Sodexo SA(a) | 2,442 | 310,330 | ||||||
SSP Group plc | 21,589 | 124,264 | ||||||
St Marc Holdings Co. Ltd. | 1,400 | 42,639 | ||||||
Star Entertainment Grp Ltd. (The) | 18,462 | 76,904 | ||||||
Tabcorp Holdings Ltd. | 17,988 | 63,899 | ||||||
Tatts Group Ltd. | 31,350 | 100,814 | ||||||
Thomas Cook Group plc | 493,152 | 610,262 | ||||||
Tokyo Dome Corp. | 67,900 | 627,406 | ||||||
Tokyotokeiba Co. Ltd. | 9,000 | 20,831 | ||||||
Toridoll Holdings Corp. | 1,600 | 38,540 | ||||||
Tosho Co. Ltd. | 400 | 17,188 | ||||||
TUI AG, DI | 23,056 | 334,172 | ||||||
Whitbread plc | 4,570 | 238,567 | ||||||
William Hill plc | 39,864 | 151,370 | ||||||
Wynn Macau Ltd.* | 44,400 | 97,619 | ||||||
Yoshinoya Holdings Co. Ltd. | 4,900 | 80,048 | ||||||
Young & Co’s Brewery plc, Class A | 2,916 | 49,760 | ||||||
Zensho Holdings Co. Ltd. | 3,600 | 61,620 | ||||||
13,925,134 |
See Accompanying Notes to the Financial Statements.
96 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Household Durables – 1.8% | ||||||||
Alpine Electronics, Inc. | 3,600 | $ | 52,351 | |||||
Barratt Developments plc | 44,946 | 336,973 | ||||||
Bellway plc | 5,610 | 206,561 | ||||||
Berkeley Group Holdings plc | 5,558 | 234,272 | ||||||
Bonava AB, Class B | 4,031 | 65,189 | ||||||
Bovis Homes Group plc | 94,881 | 1,129,935 | ||||||
Breville Group Ltd. | 3,137 | 25,102 | ||||||
Cairn Homes plc* | 33,544 | 57,166 | ||||||
Casio Computer Co. Ltd. | 10,000 | 140,935 | ||||||
Chofu Seisakusho Co. Ltd. | 200 | 4,783 | ||||||
Clarion Co. Ltd. | 79,000 | 313,250 | ||||||
Countryside Properties plc(c) | 14,613 | 51,007 | ||||||
Crest Nicholson Holdings plc | 178,068 | 1,390,316 | ||||||
De’ Longhi SpA | 1,155 | 35,217 | ||||||
Dorel Industries, Inc., Class B | 18,348 | 440,148 | ||||||
Duni AB | 3,666 | 51,959 | ||||||
Ekornes ASA | 20,526 | 323,470 | ||||||
Electrolux AB, Series B(a) | 6,204 | 184,338 | ||||||
Fiskars OYJ Abp* | 944 | 20,714 | ||||||
Forbo Holding AG (Registered) | 16 | 26,215 | ||||||
Foster Electric Co. Ltd. | 20,037 | 334,339 | ||||||
Fujitsu General Ltd. | 2,000 | 42,433 | ||||||
GUD Holdings Ltd. | 4,785 | 44,516 | ||||||
Haseko Corp. | 15,900 | 181,437 | ||||||
Husqvarna AB, Class B | 10,285 | 102,272 | ||||||
Iida Group Holdings Co. Ltd. | 7,300 | 116,177 | ||||||
JM AB | 3,328 | 117,187 | ||||||
Kaufman & Broad SA* | 9,035 | 354,192 | ||||||
Man Wah Holdings Ltd. | 29,600 | 24,548 | ||||||
McCarthy & Stone plc(c) | 26,874 | 64,113 | ||||||
Metall Zug AG (Registered) | 10 | 39,309 | ||||||
Nagawa Co. Ltd. | 500 | 17,426 | ||||||
Nikon Corp. | 13,600 | 193,989 | ||||||
Nobia AB | 2,640 | 27,325 | ||||||
PanaHome Corp.(a) | 4,000 | 44,389 | ||||||
Panasonic Corp. | 105,800 | 1,262,823 | ||||||
Persimmon plc | 12,653 | 381,417 | ||||||
Pioneer Corp.* | 15,600 | 28,130 | ||||||
Pressance Corp.(a) | 18,200 | 210,295 | ||||||
Redrow plc | 155,743 | 1,161,604 | ||||||
Rinnai Corp. | 900 | 74,764 | ||||||
Sangetsu Corp. | 2,256 | 39,789 |
Shares | Value | |||||||
Household Durables – (continued) | ||||||||
SEB SA | 592 | $ | 95,409 | |||||
Sekisui Chemical Co. Ltd. | 23,900 | 400,942 | ||||||
Sekisui House Ltd. | 29,800 | 494,439 | ||||||
Sharp Corp.* (a) | 46,000 | 165,892 | ||||||
Sony Corp. | 33,000 | 1,112,829 | ||||||
Starts Corp., Inc. | 25,000 | 553,288 | ||||||
Steinhoff International Holdings NV(a) | 91,410 | 464,856 | ||||||
Sumitomo Forestry Co. Ltd. | 8,000 | 122,365 | ||||||
Sundart Holdings Ltd. | 68,000 | 37,508 | ||||||
Tamron Co. Ltd. | 13,200 | 246,900 | ||||||
Taylor Wimpey plc | 144,012 | 372,631 | ||||||
Techtronic Industries Co. Ltd. | 45,000 | 193,249 | ||||||
Token Corp. | 5,710 | 451,800 | ||||||
TomTom NV* | 5,274 | 53,606 | ||||||
Zojirushi Corp.(a) | 2,800 | 38,030 | ||||||
14,756,119 | ||||||||
Household Products �� 0.4% | ||||||||
Earth Chemical Co. Ltd. | 600 | 32,511 | ||||||
Henkel AG & Co. KGaA | 2,574 | 300,337 | ||||||
Henkel AG & Co. KGaA (Preference) | 4,389 | 597,425 | ||||||
Lion Corp. | 6,000 | 108,298 | ||||||
Pigeon Corp. | 2,400 | 74,280 | ||||||
PZ Cussons plc(a) | 12,210 | 52,856 | ||||||
Reckitt Benckiser Group plc | 16,764 | 1,542,264 | ||||||
Svenska Cellulosa AB SCA, Class A | 3,160 | 105,241 | ||||||
Svenska Cellulosa AB SCA, Class B | 14,501 | 480,484 | ||||||
Unicharm Corp. | 14,000 | 340,172 | ||||||
3,633,868 | ||||||||
Independent Power and Renewable Electricity Producers – 0.1% | ||||||||
Algonquin Power & Utilities Corp. | 6,486 | 61,335 | ||||||
Boralex, Inc., Class A | 2,035 | 31,091 | ||||||
Canvest Environmental Protection Group Co. Ltd. | 56,000 | 31,969 | ||||||
Capital Power Corp. | 4,687 | 85,287 | ||||||
Drax Group plc | 22,860 | 95,528 | ||||||
EDP Renovaveis SA | 6,490 | 49,436 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 97 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
Electric Power Development Co. Ltd. | 10,400 | $ | 241,177 | |||||
eRex Co. Ltd. | 1,800 | 21,573 | ||||||
ERG SpA | 2,090 | 25,945 | ||||||
Infigen Energy* | 30,688 | 21,803 | ||||||
Innergex Renewable Energy, Inc. | 4,235 | 43,177 | ||||||
Meridian Energy Ltd. | 28,875 | 54,913 | ||||||
Northland Power, Inc. | 2,420 | 42,708 | ||||||
Saeta Yield SA | 2,970 | 29,334 | ||||||
TransAlta Corp. | 16,015 | 81,873 | ||||||
TransAlta Renewables, Inc. | 4,100 | 46,748 | ||||||
Uniper SE* | 6,814 | 111,821 | ||||||
1,075,718 | ||||||||
Industrial Conglomerates – 1.1% | ||||||||
CIR-Compagnie Industriali Riunite SpA | 214,720 | 345,117 | ||||||
CK Hutchison Holdings Ltd. | 117,356 | 1,465,903 | ||||||
Daetwyler Holding AG | 334 | 56,503 | ||||||
DCC plc | 2,376 | 219,173 | ||||||
Hopewell Holdings Ltd. | 8,000 | 30,550 | ||||||
Indus Holding AG | 990 | 66,117 | ||||||
Italmobiliare SpA | 104 | 5,821 | ||||||
Jardine Matheson Holdings Ltd. | 11,500 | 742,095 | ||||||
Jardine Strategic Holdings Ltd. | 7,500 | 317,025 | ||||||
Keihan Holdings Co. Ltd. | 10,000 | 62,887 | ||||||
Keppel Corp. Ltd. | 59,500 | 277,130 | ||||||
Koninklijke Philips NV | 25,081 | 869,066 | ||||||
Nisshinbo Holdings, Inc. | 7,500 | 76,635 | ||||||
Nolato AB, Class B | 710 | 22,612 | ||||||
NWS Holdings Ltd. | 52,071 | 97,882 | ||||||
Rheinmetall AG | 1,571 | 144,130 | ||||||
Seibu Holdings, Inc. | 6,700 | 116,966 | ||||||
Sembcorp Industries Ltd.(a) | 25,900 | 56,147 | ||||||
Shun Tak Holdings Ltd. | 1,240,000 | 452,790 | ||||||
Siemens AG (Registered) | 19,800 | 2,837,455 | ||||||
Smiths Group plc | 10,626 | 225,457 | ||||||
TOKAI Holdings Corp.(a) | 12,795 | 98,485 | ||||||
Toshiba Corp.* (a) | 108,000 | 218,383 | ||||||
8,804,329 |
Shares | Value | |||||||
Insurance – 5.1% | ||||||||
Admiral Group plc | 6,211 | $ | 161,594 | |||||
Aegon NV | 62,469 | 318,292 | ||||||
Ageas | 8,976 | 367,518 | ||||||
AIA Group Ltd. | 306,200 | 2,120,060 | ||||||
Allianz SE (Registered) | 20,196 | 3,844,277 | ||||||
ASR Nederland NV* | 4,923 | 145,575 | ||||||
Assicurazioni Generali SpA | 60,126 | 951,340 | ||||||
AUB Group Ltd. | 2,255 | 20,338 | ||||||
Aviva plc | 178,860 | 1,213,694 | ||||||
AXA SA(a) | 84,612 | 2,258,308 | ||||||
Baloise Holding AG (Registered) | 2,245 | 329,043 | ||||||
Beazley plc | 21,448 | 122,037 | ||||||
CBL Corp. Ltd. | 5,544 | 13,246 | ||||||
Clal Insurance Enterprises Holdings Ltd.* | 15,972 | 259,453 | ||||||
CNP Assurances(a) | 7,469 | 155,917 | ||||||
Coface SA* (a) | 63,713 | 498,150 | ||||||
Convoy Global Holdings Ltd.* | 5,850,000 | 151,937 | ||||||
Dai-ichi Life Holdings, Inc. | 52,800 | 898,078 | ||||||
Delta Lloyd NV* (a) | 28,097 | 161,395 | ||||||
Direct Line Insurance Group plc | 63,647 | 287,543 | ||||||
esure Group plc | 17,708 | 56,129 | ||||||
Euler Hermes Group | 329 | 32,126 | ||||||
Fairfax Financial Holdings Ltd. | 607 | 277,019 | ||||||
Gjensidige Forsikring ASA | 3,960 | 60,973 | ||||||
Great-West Lifeco, Inc. | 12,144 | 326,137 | ||||||
Grupo Catalana Occidente SA | 2,102 | 81,671 | ||||||
Hannover Rueck SE | 2,706 | 324,432 | ||||||
Harel Insurance Investments & Financial Services Ltd. | 83,645 | 445,521 | ||||||
Hastings Group Holdings plc(c) | 11,496 | 44,961 | ||||||
Helvetia Holding AG (Registered)* | 289 | 160,402 | ||||||
Hiscox Ltd. | 6,160 | 90,215 | ||||||
IDI Insurance Co. Ltd. | 4,626 | 246,652 | ||||||
Industrial Alliance Insurance & Financial Services, Inc. | 4,686 | 197,372 | ||||||
Insurance Australia Group Ltd. | 60,852 | 282,606 | ||||||
Intact Financial Corp. | 3,301 | 225,756 | ||||||
Japan Post Holdings Co. Ltd. | 13,200 | 163,535 | ||||||
Jardine Lloyd Thompson Group plc | 3,135 | 44,493 | ||||||
JRP Group plc | 469,723 | 755,984 |
See Accompanying Notes to the Financial Statements.
98 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Lancashire Holdings Ltd.(a) | 142,245 | $ | 1,256,001 | |||||
Legal & General Group plc | 265,520 | 845,394 | ||||||
Manulife Financial Corp. | 87,252 | 1,527,692 | ||||||
Mapfre SA | 32,340 | 112,834 | ||||||
Medibank Pvt Ltd. | 74,184 | 161,442 | ||||||
Menora Mivtachim Holdings Ltd. | 16,709 | 192,951 | ||||||
Migdal Insurance & Financial Holding Ltd. | 266,112 | 262,455 | ||||||
MS&AD Insurance Group Holdings, Inc. | 23,300 | 759,178 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) | 7,194 | 1,378,376 | ||||||
nib holdings Ltd. | 10,835 | 48,618 | ||||||
NN Group NV | 13,620 | 451,471 | ||||||
Old Mutual plc | 219,450 | 550,792 | ||||||
Phoenix Group Holdings | 9,672 | 92,472 | ||||||
Phoenix Holdings Ltd. (The)* | 46,088 | 202,445 | ||||||
Poste Italiane SpA(c) | 16,856 | 115,455 | ||||||
Power Corp. of Canada | 15,379 | 355,765 | ||||||
Power Financial Corp. | 10,098 | 256,198 | ||||||
Protector Forsikring ASA | 4,015 | 33,511 | ||||||
Prudential plc | 109,956 | 2,441,106 | ||||||
QBE Insurance Group Ltd. | 60,918 | 586,325 | ||||||
RSA Insurance Group plc | 45,476 | 350,654 | ||||||
Saga plc | 13,805 | 37,435 | ||||||
Sampo OYJ, Class A(a) | 12,741 | 610,331 | ||||||
SCOR SE* | 7,722 | 305,410 | ||||||
Societa Cattolica di Assicurazioni SCRL | 105,930 | 940,699 | ||||||
Sompo Holdings, Inc. | 17,000 | 641,446 | ||||||
Sony Financial Holdings, Inc. | 8,500 | 141,222 | ||||||
St James’s Place plc | 13,662 | 202,911 | ||||||
Standard Life plc | 90,156 | 424,450 | ||||||
Steadfast Group Ltd. | 33,550 | 68,246 | ||||||
Storebrand ASA | 17,930 | 118,466 | ||||||
Sun Life Financial, Inc. | 27,126 | 956,443 | ||||||
Suncorp Group Ltd. | 57,486 | 593,274 | ||||||
Swiss Life Holding AG (Registered)* | 1,452 | 472,307 | ||||||
Swiss Re AG | 14,982 | 1,303,372 | ||||||
T&D Holdings, Inc. | 26,500 | 393,090 |
Shares | Value | |||||||
Insurance – (continued) | ||||||||
Talanx AG | 1,827 | $ | 65,833 | |||||
Tokio Marine Holdings, Inc. | 34,700 | 1,460,594 | ||||||
Topdanmark A/S* | 1,650 | 45,153 | ||||||
Tryg A/S | 2,365 | 45,362 | ||||||
Unipol Gruppo Finanziario SpA | 21,702 | 96,704 | ||||||
UnipolSai Assicurazioni SpA | 50,490 | 116,010 | ||||||
UNIQA Insurance Group AG | 5,720 | 47,737 | ||||||
Vienna Insurance Group AG Wiener Versicherung Gruppe | 580 | 15,035 | ||||||
Wuestenrot & Wuerttembergische AG | 14,257 | 288,768 | ||||||
Zurich Insurance Group AG | 6,600 | 1,825,948 | ||||||
41,291,160 | ||||||||
Internet & Direct Marketing Retail – 0.2% | ||||||||
AO World plc* | 6,710 | 11,719 | ||||||
ASOS plc* | 1,589 | 119,646 | ||||||
Belluna Co. Ltd. | 39,700 | 363,985 | ||||||
boohoo.com plc* | 21,681 | 52,874 | ||||||
N Brown Group plc(a) | 111,408 | 343,760 | ||||||
Ocado Group plc* | 12,741 | 41,374 | ||||||
Rakuten, Inc. | 20,300 | 207,789 | ||||||
Start Today Co. Ltd. | 3,500 | 74,729 | ||||||
Takkt AG | 1,485 | 35,277 | ||||||
Trade Me Group Ltd. | 9,570 | 34,822 | ||||||
Webjet Ltd. | 5,843 | 49,771 | ||||||
Yoox Net-A-Porter Group SpA* | 2,041 | 54,230 | ||||||
Zalando SE* (c) | 2,179 | 96,064 | ||||||
zooplus AG* | 220 | 41,122 | ||||||
1,527,162 | ||||||||
Internet Software & Services – 0.2% | ||||||||
Aconex Ltd.* (a) | 7,606 | 24,971 | ||||||
Auto Trader Group plc(c) | 17,634 | 91,507 | ||||||
carsales.com Ltd. | 3,812 | 33,468 | ||||||
COOKPAD, Inc. | 1,900 | 15,119 | ||||||
DeNA Co. Ltd. | 4,000 | 85,655 | ||||||
Dip Corp. | 1,400 | 30,934 | ||||||
F@N Communications, Inc. | 2,200 | 17,526 | ||||||
GMO internet, Inc. | 1,200 | 14,242 | ||||||
Gree, Inc. | 2,000 | 16,058 | ||||||
Gurunavi, Inc. | 1,800 | 36,155 | ||||||
Infomart Corp. | 3,400 | 20,405 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 99 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Internet Software & Services – (continued) | ||||||||
Internet Initiative Japan, Inc. | 2,300 | $ | 42,030 | |||||
iSentia Group Ltd. | 11,055 | 11,988 | ||||||
Istyle, Inc. | 2,000 | 16,166 | ||||||
Just Eat plc* | 12,483 | 93,185 | ||||||
Kakaku.com, Inc.(a) | 4,900 | 70,640 | ||||||
Mixi, Inc. | 1,800 | 99,794 | ||||||
Moneysupermarket.com Group plc | 30,328 | 135,720 | ||||||
NetEnt AB* | 4,510 | 34,813 | ||||||
NEXTDC Ltd.* | 16,647 | 51,790 | ||||||
Rightmove plc | 2,859 | 154,833 | ||||||
Scout24 AG* (a) (c) | 825 | 28,299 | ||||||
Shopify, Inc., Class A* | 1,828 | 138,837 | ||||||
SMS Co. Ltd. | 1,600 | 42,587 | ||||||
SUNeVision Holdings Ltd. | 134,000 | 75,119 | ||||||
Takeaway.com Holding BV* (c) | 1,022 | 34,411 | ||||||
United Internet AG (Registered) | 2,576 | 118,531 | ||||||
XING AG | 165 | 38,603 | ||||||
Yahoo Japan Corp.(a) | 26,100 | 111,687 | ||||||
ZPG plc(c) | 13,398 | 64,135 | ||||||
1,749,208 | ||||||||
IT Services – 1.0% | ||||||||
Alten SA | 1,155 | 97,852 | ||||||
Altran Technologies SA* | 3,520 | 59,068 | ||||||
Amadeus IT Group SA | 11,630 | 626,892 | ||||||
Atea ASA* (a) | 58,552 | 710,840 | ||||||
Atos SE | 2,850 | 373,352 | ||||||
Bechtle AG | 596 | 68,374 | ||||||
CANCOM SE | 1,168 | 69,089 | ||||||
Capgemini SA | 4,436 | 443,931 | ||||||
CGI Group, Inc., Class A* | 6,930 | 333,905 | ||||||
Computacenter plc | 3,355 | 35,571 | ||||||
Computershare Ltd. | 14,894 | 164,181 | ||||||
DH Corp. | 75,542 | 1,402,773 | ||||||
Digital Garage, Inc. | 1,900 | 40,192 | ||||||
DTS Corp. | 15,200 | 398,443 | ||||||
Econocom Group SA/NV* | 2,640 | 42,447 | ||||||
FDM Group Holdings plc | 3,850 | 39,798 | ||||||
Formula Systems 1985 Ltd. | 5,119 | 199,400 | ||||||
Fujitsu Ltd. | 82,000 | 511,112 | ||||||
GMO Payment Gateway, Inc.(a) | 400 | 17,942 |
Shares | Value | |||||||
IT Services – (continued) | ||||||||
Indra Sistemas SA* | 5,537 | $ | 75,881 | |||||
Information Services International-Dentsu Ltd. | 900 | 19,757 | ||||||
Itochu Techno-Solutions Corp. | 1,200 | 34,933 | ||||||
Link Administration Holdings Ltd. | 4,895 | 28,297 | ||||||
Matrix IT Ltd. | 2,464 | 23,246 | ||||||
Mitsubishi Research Institute, Inc. | 9,700 | 281,071 | ||||||
NCC Group plc | 14,002 | 25,814 | ||||||
NEC Networks & System Integration Corp. | 24,300 | 507,712 | ||||||
NET One Systems Co. Ltd. | 8,100 | 73,901 | ||||||
Nets A/S* (c) | 1,736 | 31,569 | ||||||
Nihon Unisys Ltd. | 2,600 | 36,433 | ||||||
Nomura Research Institute Ltd. | 2,515 | 87,541 | ||||||
NS Solutions Corp. | 800 | 17,511 | ||||||
NTT Data Corp. | 6,600 | 306,109 | ||||||
Obic Co. Ltd. | 1,500 | 81,008 | ||||||
Otsuka Corp. | 900 | 48,201 | ||||||
Paysafe Group plc* | 9,790 | 57,490 | ||||||
Reply SpA | 220 | 38,547 | ||||||
SCSK Corp. | 400 | 16,094 | ||||||
Softcat plc | 4,571 | 24,365 | ||||||
Sopra Steria Group | 663 | 99,416 | ||||||
Tieto OYJ | 1,598 | 50,134 | ||||||
TIS, Inc. | 2,300 | 57,959 | ||||||
TKC Corp. | 1,000 | 27,182 | ||||||
Transcosmos, Inc. | 2,100 | 50,432 | ||||||
Wirecard AG(a) | 2,399 | 141,618 | ||||||
Worldline SA* (c) | 1,045 | 34,645 | ||||||
Worldpay Group plc(c) | 40,678 | 157,882 | ||||||
8,069,910 | ||||||||
Leisure Products – 0.2% | ||||||||
Amer Sports OYJ | 2,640 | 58,503 | ||||||
Bandai Namco Holdings, Inc. | 7,800 | 244,559 | ||||||
Beneteau SA | 2,358 | 33,445 | ||||||
BRP, Inc.* | 3,584 | 84,587 | ||||||
Fields Corp. | 1,500 | 16,834 | ||||||
Heiwa Corp. | 1,250 | 32,195 | ||||||
Mizuno Corp. | 4,000 | 20,669 | ||||||
Photo-Me International plc | 19,912 | 44,824 | ||||||
Sankyo Co. Ltd. | 900 | 31,367 | ||||||
Sega Sammy Holdings, Inc. | 5,800 | 77,892 |
See Accompanying Notes to the Financial Statements.
100 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Leisure Products – (continued) | ||||||||
Shimano, Inc. | 1,900 | $ | 290,275 | |||||
Technogym SpA* (c) | 4,905 | 38,217 | ||||||
Thule Group AB(c) | 2,805 | 48,689 | ||||||
Tomy Co. Ltd. | 3,700 | 36,844 | ||||||
Trigano SA | 414 | 43,753 | ||||||
Yamaha Corp. | 4,600 | 127,514 | ||||||
Yonex Co. Ltd. | 2,700 | 27,177 | ||||||
1,257,344 | ||||||||
Life Sciences Tools & Services – 0.1% | ||||||||
Clinigen Group plc | 4,510 | 51,055 | ||||||
EPS Holdings, Inc. | 1,900 | 25,022 | ||||||
Eurofins Scientific SE | 147 | 72,370 | ||||||
Genscript Biotech Corp.* | 30,000 | 13,346 | ||||||
Gerresheimer AG | 736 | 57,722 | ||||||
Lonza Group AG (Registered)* | 1,518 | 310,325 | ||||||
MorphoSys AG* (a) | 1,667 | 101,147 | ||||||
QIAGEN NV* | 6,353 | 191,162 | ||||||
Siegfried Holding AG (Registered)* | 165 | 47,157 | ||||||
Tecan Group AG (Registered) | 779 | 132,879 | ||||||
1,002,185 | ||||||||
Machinery – 3.5% | ||||||||
Aalberts Industries NV | 1,980 | 78,526 | ||||||
Aichi Corp. | 27,400 | 202,298 | ||||||
Aida Engineering Ltd. | 44,200 | 384,624 | ||||||
Alfa Laval AB(a) | 6,270 | 128,660 | ||||||
Alstom SA* | 3,962 | 125,765 | ||||||
Amada Holdings Co. Ltd. | 15,700 | 186,479 | ||||||
ANDRITZ AG | 1,441 | 79,667 | ||||||
Atlas Copco AB, Class A | 15,083 | 564,156 | ||||||
Atlas Copco AB, Class B | 11,022 | 366,703 | ||||||
ATS Automation Tooling Systems, Inc.* | 5,484 | 52,221 | ||||||
Bando Chemical Industries Ltd. | 5,600 | 51,293 | ||||||
Beijer Alma AB | 1,000 | 28,403 | ||||||
Bobst Group SA (Registered) | 200 | 20,252 | ||||||
Bodycote plc | 8,415 | 90,742 | ||||||
Bucher Industries AG (Registered) | 275 | 88,609 | ||||||
Burckhardt Compression Holding AG | 141 | 43,237 |
Shares | Value | |||||||
Machinery – (continued) | ||||||||
Cargotec OYJ, Class B | 1,540 | $ | 91,815 | |||||
CKD Corp. | 41,600 | 520,606 | ||||||
Construcciones y Auxiliar de Ferrocarriles SA | 2,072 | 83,235 | ||||||
Conzzeta AG (Registered) | 55 | 54,340 | ||||||
Daifuku Co. Ltd. | 4,800 | 121,303 | ||||||
Danieli & C Officine Meccaniche SpA | 9,121 | 227,947 | ||||||
Danieli & C Officine Meccaniche SpA | 28,653 | 517,636 | ||||||
DMG Mori AG | 1,007 | 54,862 | ||||||
DMG Mori Co. Ltd. | 2,000 | 32,977 | ||||||
Duerr AG | 605 | 60,282 | ||||||
Ebara Corp. | 3,100 | 94,416 | ||||||
FANUC Corp. | 4,500 | 914,573 | ||||||
Fuji Machine Manufacturing Co. Ltd. | 3,300 | 41,890 | ||||||
Fujitec Co. Ltd. | 3,000 | 35,525 | ||||||
Fukushima Industries Corp. | 13,200 | 468,341 | ||||||
Furukawa Co. Ltd. | 282,000 | 543,913 | ||||||
GEA Group AG | 4,554 | 193,602 | ||||||
Georg Fischer AG (Registered) | 121 | 114,017 | ||||||
Glory Ltd. | 2,000 | 67,103 | ||||||
Haldex AB | 1,120 | 15,052 | ||||||
Harmonic Drive Systems, Inc.(a) | 1,500 | 47,165 | ||||||
Hino Motors Ltd. | 13,300 | 166,683 | ||||||
Hirata Corp. | 300 | 23,683 | ||||||
Hitachi Construction Machinery Co. Ltd. | 5,100 | 131,355 | ||||||
Hitachi Zosen Corp. | 115,300 | 669,230 | ||||||
Hoshizaki Corp. | 1,200 | 100,009 | ||||||
IHI Corp.* | 66,000 | 223,809 | ||||||
IMI plc | 5,885 | 97,379 | ||||||
Industria Macchine Automatiche SpA | 495 | 43,661 | ||||||
Interpump Group SpA | 3,355 | 88,961 | ||||||
Interroll Holding AG (Registered) | 17 | 19,981 | ||||||
Iseki & Co. Ltd. | 9,000 | 18,489 | ||||||
Japan Steel Works Ltd. (The) | 600 | 9,624 | ||||||
JTEKT Corp. | 9,500 | 149,484 | ||||||
Jungheinrich AG (Preference) | 2,352 | 81,882 | ||||||
Kawasaki Heavy Industries Ltd. | 66,000 | 199,533 | ||||||
KION Group AG | 2,597 | 175,873 | ||||||
Kitz Corp. | 75,500 | 528,304 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 101 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Komatsu Ltd. | 23,500 | $ | 626,554 | |||||
Komax Holding AG (Registered) | 165 | 44,008 | ||||||
Komori Corp. | 4,400 | 58,143 | ||||||
Kone OYJ, Class B(a) | 9,836 | 450,501 | ||||||
Konecranes OYJ | 2,243 | 94,110 | ||||||
Krones AG | 330 | 39,170 | ||||||
Kubota Corp. | 30,087 | 473,154 | ||||||
Kurita Water Industries Ltd. | 3,400 | 87,722 | ||||||
Kyokuto Kaihatsu Kogyo Co. Ltd. | 26,400 | 435,540 | ||||||
Makino Milling Machine Co. Ltd. | 72,000 | 640,746 | ||||||
Makita Corp. | 6,600 | 235,355 | ||||||
MAN SE | 660 | 69,312 | ||||||
MAN SE (Preference) | 183 | 18,971 | ||||||
Max Co. Ltd. | 2,000 | 29,246 | ||||||
Meidensha Corp. | 150,000 | 547,681 | ||||||
Metso OYJ(a) | 3,481 | 124,826 | ||||||
MINEBEA MITSUMI, Inc. | 19,811 | 286,315 | ||||||
Mitsubishi Heavy Industries Ltd. | 168,119 | 672,657 | ||||||
Mitsui Engineering & Shipbuilding Co. Ltd.(a) | 570,000 | 874,406 | ||||||
Miura Co. Ltd. | 3,300 | 55,271 | ||||||
Morgan Advanced Materials plc | 200,376 | 865,850 | ||||||
Morita Holdings Corp. | 1,400 | 20,459 | ||||||
Nabtesco Corp. | 2,300 | 65,201 | ||||||
Nachi-Fujikoshi Corp. | 165,000 | 879,250 | ||||||
Namura Shipbuilding Co. Ltd. | 42,339 | 273,094 | ||||||
New Flyer Industries, Inc. | 1,870 | 69,545 | ||||||
NGK Insulators Ltd. | 8,000 | 170,880 | ||||||
Nitta Corp. | 16,600 | 469,095 | ||||||
NKT Holding A/S* | 2,376 | 187,337 | ||||||
Norma Group SE | 1,617 | 86,721 | ||||||
NSK Ltd. | 20,800 | 283,628 | ||||||
NTN Corp. | 19,000 | 96,645 | ||||||
Obara Group, Inc. | 600 | 27,397 | ||||||
OC Oerlikon Corp. AG (Registered)* | 4,758 | 57,118 | ||||||
Oiles Corp. | 20,820 | 378,223 | ||||||
OKUMA Corp. | 5,000 | 52,346 | ||||||
OSG Corp.(a) | 1,500 | 30,883 | ||||||
Palfinger AG(a) | 9,641 | 393,591 | ||||||
Pfeiffer Vacuum Technology AG | 302 | 39,200 | ||||||
Rational AG | 55 | 27,628 |
Shares | Value | |||||||
Machinery – (continued) | ||||||||
Rieter Holding AG (Registered)* | 165 | $ | 36,599 | |||||
Rotork plc | 18,919 | 60,188 | ||||||
Ryobi Ltd. | 110,000 | 483,538 | ||||||
Sandvik AB | 28,380 | 455,757 | ||||||
Schindler Holding AG | 1,322 | 269,991 | ||||||
Schindler Holding AG (Registered) | 330 | 65,506 | ||||||
Sembcorp Marine Ltd. | 26,000 | 30,321 | ||||||
Shima Seiki Manufacturing Ltd. | 1,300 | 47,116 | ||||||
Shinmaywa Industries Ltd. | 66,000 | 555,970 | ||||||
Sintokogio Ltd. | 2,200 | 19,144 | ||||||
SKF AB, Class A | 3,795 | 83,445 | ||||||
SKF AB, Class B | 15,266 | 335,498 | ||||||
SMC Corp. | 1,600 | 450,561 | ||||||
Spirax-Sarco Engineering plc | 1,543 | 103,805 | ||||||
Stabilus SA | 1,549 | 112,154 | ||||||
Star Micronics Co. Ltd. | 5,900 | 98,713 | ||||||
Sulzer AG (Registered) | 242 | 28,225 | ||||||
Sumitomo Heavy Industries Ltd. | 26,000 | 181,233 | ||||||
Tadano Ltd. | 6,500 | 83,852 | ||||||
Takeuchi Manufacturing Co. Ltd. | 27,500 | 487,732 | ||||||
Takuma Co. Ltd. | 66,181 | 686,924 | ||||||
THK Co. Ltd. | 2,500 | 64,390 | ||||||
Toshiba Machine Co. Ltd. | 18,245 | 75,782 | ||||||
Trelleborg AB, Class B | 4,785 | 112,508 | ||||||
Tsubaki Nakashima Co. Ltd.(a) | 5,600 | 98,416 | ||||||
Tsubakimoto Chain Co. | 9,000 | 79,044 | ||||||
Union Tool Co. | 500 | 14,780 | ||||||
Valmet OYJ | 5,005 | 91,182 | ||||||
Vesuvius plc | 153,912 | 1,055,355 | ||||||
Volvo AB, Class A | 12,474 | 203,984 | ||||||
Volvo AB, Class B | 68,508 | 1,121,065 | ||||||
Vossloh AG* | 495 | 33,204 | ||||||
Wacker Neuson SE | 17,622 | 445,100 | ||||||
Wartsila OYJ Abp | 3,830 | 233,141 | ||||||
Weir Group plc (The) | 4,896 | 126,114 | ||||||
Yangzijiang Shipbuilding Holdings Ltd. | 103,300 | 84,993 | ||||||
Zardoya Otis SA | 2,516 | 23,316 | ||||||
28,396,600 | ||||||||
Marine – 0.4% | ||||||||
AP Moller – Maersk A/S, Class A | 132 | 218,976 |
See Accompanying Notes to the Financial Statements.
102 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Marine – (continued) | ||||||||
AP Moller – Maersk A/S, Class B | 264 | $ | 456,505 | |||||
Clarkson plc | 1,045 | 38,720 | ||||||
Dfds A/S | 1,501 | 89,469 | ||||||
Iino Kaiun Kaisha Ltd. | 4,300 | 17,745 | ||||||
Irish Continental Group plc | 11,810 | 68,161 | ||||||
Kawasaki Kisen Kaisha Ltd.(a) | 78,000 | 205,024 | ||||||
Kuehne + Nagel International AG (Registered) | 1,518 | 229,351 | ||||||
Mitsui OSK Lines Ltd. | 37,000 | 113,187 | ||||||
Nippon Yusen KK* | 64,000 | 128,609 | ||||||
Orient Overseas International Ltd. | 7,000 | 37,351 | ||||||
SITC International Holdings Co. Ltd. | 904,000 | 647,412 | ||||||
Stolt-Nielsen Ltd. | 12,936 | 200,084 | ||||||
Wallenius Wilhelmsen Logistics* (a) | 77,998 | 396,067 | ||||||
Wilh Wilhelmsen Holding ASA, Class A | 10,824 | 301,983 | ||||||
Wilh Wilhelmsen Holding ASA, Class B | 7,102 | 193,996 | ||||||
3,342,640 | ||||||||
Media – 1.7% | ||||||||
Aimia, Inc. | 106,656 | 712,964 | ||||||
Altice NV, Class A* (a) | 8,910 | 221,267 | ||||||
Altice NV, Class B* | 2,579 | 64,116 | ||||||
APG SGA SA | 44 | 21,040 | ||||||
APN News & Media Ltd. | 175,758 | 327,287 | ||||||
APN Outdoor Group Ltd. | 7,260 | 29,590 | ||||||
Asatsu-DK, Inc. | 2,500 | 64,816 | ||||||
Ascential plc | 8,525 | 38,911 | ||||||
Atresmedia Corp. de Medios de Comunicacion SA | 3,386 | 42,513 | ||||||
Avex Group Holdings, Inc. | 1,600 | 23,511 | ||||||
Axel Springer SE(a) | 1,100 | 61,701 | ||||||
Cineplex, Inc. | 1,485 | 58,355 | ||||||
Cineworld Group plc | 8,261 | 75,241 | ||||||
Cogeco Communications, Inc. | 16,751 | 956,938 | ||||||
Corus Entertainment, Inc., Class B(a) | 77,778 | 762,251 |
Shares | Value | |||||||
Media – (continued) | ||||||||
CTS Eventim AG & Co. KGaA | 1,375 | $ | 52,952 | |||||
CyberAgent, Inc. | 2,200 | 68,287 | ||||||
Daiichikosho Co. Ltd. | 1,100 | 47,712 | ||||||
Daily Mail & General Trust plc, Class A | 5,665 | 52,440 | ||||||
Dentsu, Inc. | 8,700 | 490,141 | ||||||
DHX Media Ltd. | 9,324 | 39,211 | ||||||
DHX Media Ltd. | 8,800 | 36,235 | ||||||
Entertainment One Ltd. | 248,759 | 795,890 | ||||||
Euromoney Institutional Investor plc | 3,484 | 47,148 | ||||||
Eutelsat Communications SA | 4,683 | 110,813 | ||||||
Event Hospitality and Entertainment Ltd. | 2,310 | 22,458 | ||||||
Evergrande Health Industry Group Ltd.* | 125,000 | 23,304 | ||||||
Fairfax Media Ltd. | 155,344 | 123,144 | ||||||
Fuji Media Holdings, Inc. | 1,200 | 17,138 | ||||||
GTN Ltd. | 3,886 | 7,091 | ||||||
Hakuhodo DY Holdings, Inc. | 7,400 | 90,085 | ||||||
Havas SA | 3,520 | 32,539 | ||||||
HMV Digital China Group Ltd.* | 880,000 | 33,944 | ||||||
Huanxi Media Group Ltd.* | 50,000 | 14,400 | ||||||
Informa plc | 20,790 | 172,679 | ||||||
IPSOS | 24,486 | 784,989 | ||||||
ITV plc | 151,338 | 411,166 | ||||||
JCDecaux SA | 1,595 | 56,249 | ||||||
Kadokawa Dwango Corp. | 3,700 | 51,183 | ||||||
Kinepolis Group NV | 1,030 | 59,435 | ||||||
Lagardere SCA | 4,979 | 152,463 | ||||||
Lifull Co. Ltd. | 2,900 | 20,345 | ||||||
Mediaset Espana Comunicacion SA* | 3,705 | 51,057 | ||||||
Mediaset SpA(a) | 15,003 | 61,331 | ||||||
Metropole Television SA | 1,210 | 27,558 | ||||||
Modern Times Group MTG AB, Class B | 1,045 | 34,106 | ||||||
Neo Telemedia Ltd.* | 448,000 | 19,009 | ||||||
Nine Entertainment Co. Holdings Ltd.(a) | 472,296 | 434,444 | ||||||
Nippon Television Holdings, Inc. | 1,500 | 25,123 | ||||||
NOS SGPS SA | 6,180 | 35,385 | ||||||
OOH MEDIA Ltd. | 4,816 | 16,207 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 103 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Pearson plc | 36,133 | $ | 298,714 | |||||
ProSiebenSat.1 Media SE | 6,138 | 260,608 | ||||||
Publicis Groupe SA | 5,397 | 389,473 | ||||||
Quebecor, Inc., Class B | 1,870 | 56,990 | ||||||
RAI Way SpA(c) | 8,120 | 42,637 | ||||||
REA Group Ltd.(a) | 912 | 41,939 | ||||||
RTL Group SA | 774 | 60,011 | ||||||
Sanoma OYJ | 6,676 | 58,886 | ||||||
Schibsted ASA, Class A | 2,672 | 66,593 | ||||||
Schibsted ASA, Class B | 1,155 | 25,954 | ||||||
Septeni Holdings Co. Ltd. | 5,600 | 19,543 | ||||||
SES SA, FDR(a) | 10,098 | 220,749 | ||||||
Seven West Media Ltd.(a) | 623,075 | 344,815 | ||||||
Shaw Communications, Inc., Class B | 10,469 | 221,585 | ||||||
Shochiku Co. Ltd. | 3,000 | 34,207 | ||||||
Singapore Press Holdings Ltd.(a) | 35,000 | 86,893 | ||||||
SKY Network Television Ltd. | 15,785 | 41,832 | ||||||
SKY Perfect JSAT Holdings, Inc. | 6,800 | 31,173 | ||||||
Sky plc | 26,400 | 338,818 | ||||||
Southern Cross Media Group Ltd. | 515,297 | 497,121 | ||||||
Stroeer SE & Co. KGaA(a) | 605 | 34,976 | ||||||
Tamedia AG (Registered) | 448 | 65,932 | ||||||
Technicolor SA (Registered) | 14,039 | 71,256 | ||||||
Tele Columbus AG* (c) | 3,355 | 32,004 | ||||||
Telenet Group Holding NV* | 1,100 | 66,792 | ||||||
Television Broadcasts Ltd.(b) | 7,500 | 28,833 | ||||||
Television Francaise 1 | 1,850 | 22,684 | ||||||
Toei Animation Co. Ltd. | 300 | 16,605 | ||||||
Toei Co. Ltd. | 71,000 | 614,650 | ||||||
Toho Co. Ltd. | 4,100 | 117,516 | ||||||
UBM plc | 8,066 | 74,143 | ||||||
Vector, Inc. | 1,500 | 20,804 | ||||||
Village Roadshow Ltd. | 54,357 | 147,563 | ||||||
Wowow, Inc. | 3,630 | 120,327 | ||||||
WPP AUNZ Ltd. | 237,468 | 206,893 | ||||||
WPP plc | 34,386 | 735,368 | ||||||
Zenrin Co. Ltd. | 1,600 | 30,100 | ||||||
13,523,149 |
Shares | Value | |||||||
Metals & Mining – 3.4% | ||||||||
Acacia Mining plc | 7,260 | $ | 37,157 | |||||
Acerinox SA | 1,179 | 16,459 | ||||||
Agnico Eagle Mines Ltd. | 6,105 | 291,342 | ||||||
Aichi Steel Corp. | 8,400 | 328,555 | ||||||
Alacer Gold Corp.* | 13,035 | 20,592 | ||||||
Alamos Gold, Inc., Class A | 11,607 | 82,937 | ||||||
Alumina Ltd.(a) | 52,030 | 71,596 | ||||||
Anglo American plc* | 61,070 | 874,238 | ||||||
Antofagasta plc | 11,371 | 123,280 | ||||||
APERAM SA | 1,892 | 95,227 | ||||||
ArcelorMittal* | 84,546 | 666,837 | ||||||
Asahi Holdings, Inc. | 23,400 | 436,008 | ||||||
Asanko Gold, Inc.* (a) | 11,072 | 26,803 | ||||||
Aurubis AG | 1,561 | 109,096 | ||||||
B2Gold Corp.* | 20,020 | 50,222 | ||||||
Barrick Gold Corp. | 30,116 | 502,631 | ||||||
Bekaert SA | 1,430 | 71,982 | ||||||
BHP Billiton Ltd. | 81,114 | 1,438,881 | ||||||
BHP Billiton plc | 54,648 | 830,735 | ||||||
BlueScope Steel Ltd. | 25,660 | 224,521 | ||||||
Boliden AB(a) | 8,785 | 251,204 | ||||||
Centamin plc | 58,887 | 134,771 | ||||||
Centerra Gold, Inc. | 151,082 | 779,001 | ||||||
China Gold International Resources Corp. Ltd.* | 13,261 | 19,688 | ||||||
Daido Steel Co. Ltd. | 10,000 | 55,710 | ||||||
Detour Gold Corp.* | 3,740 | 47,184 | ||||||
Dominion Diamond Corp. | 60,258 | 731,135 | ||||||
Dowa Holdings Co. Ltd. | 11,000 | 81,905 | ||||||
Eldorado Gold Corp. | 15,211 | 55,513 | ||||||
Endeavour Mining Corp.* | 3,259 | 53,677 | ||||||
Eramet* (a) | 9,308 | 448,465 | ||||||
Evolution Mining Ltd. | 42,302 | 72,445 | ||||||
Evraz plc* | 11,605 | 32,520 | ||||||
Ferrexpo plc | 104,082 | 212,891 | ||||||
First Majestic Silver Corp.* | 9,010 | 73,145 | ||||||
First Quantum Minerals Ltd. | 17,240 | 164,040 | ||||||
Fortescue Metals Group Ltd. | 42,130 | 167,302 | ||||||
Fortuna Silver Mines, Inc.* | 9,565 | 43,862 | ||||||
Franco-Nevada Corp. | 4,570 | 310,304 | ||||||
Fresnillo plc | 4,098 | 76,982 | ||||||
Galaxy Resources Ltd.* | 100,307 | 31,881 | ||||||
Glencore plc* | 309,144 | 1,214,464 |
See Accompanying Notes to the Financial Statements.
104 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Goldcorp, Inc. | 22,479 | $ | 312,697 | |||||
Granges AB* (a) | 46,332 | 481,382 | ||||||
G-Resources Group Ltd. | 673,335 | 11,861 | ||||||
Guyana Goldfields, Inc.* | 9,455 | 46,815 | ||||||
Hill & Smith Holdings plc | 3,245 | 55,752 | ||||||
Hitachi Metals Ltd. | 6,040 | 84,583 | ||||||
Hochschild Mining plc | 13,695 | 45,039 | ||||||
Hudbay Minerals, Inc. | 13,560 | 80,826 | ||||||
IAMGOLD Corp.* | 20,564 | 84,825 | ||||||
Iluka Resources Ltd.* | 8,525 | 53,554 | ||||||
Independence Group NL | 18,425 | 44,920 | ||||||
Ivanhoe Mines Ltd., Class A* | 26,184 | 91,729 | ||||||
JFE Holdings, Inc. | 26,400 | 450,105 | ||||||
KAZ Minerals plc* | 18,115 | 118,002 | ||||||
Kinross Gold Corp.* | 27,328 | 94,938 | ||||||
Kirkland Lake Gold Ltd.* | 8,924 | 61,678 | ||||||
Klondex Mines Ltd.* | 8,436 | 30,109 | ||||||
Kobe Steel Ltd.* (a) | 14,700 | 130,555 | ||||||
Kyoei Steel Ltd. | 17,200 | 278,052 | ||||||
Labrador Iron Ore Royalty Corp. | 4,859 | 63,007 | ||||||
Lucara Diamond Corp. | 14,672 | 33,802 | ||||||
Lundin Mining Corp. | 22,025 | 117,269 | ||||||
MAG Silver Corp.* | 2,970 | 36,275 | ||||||
Maruichi Steel Tube Ltd. | 1,000 | 28,348 | ||||||
Metals X Ltd.* | 347,440 | 190,977 | ||||||
Mineral Resources Ltd. | 7,260 | 58,040 | ||||||
Mitsubishi Materials Corp. | 4,800 | 142,747 | ||||||
Mitsui Mining & Smelting Co. Ltd. | 30,000 | 101,193 | ||||||
Mountain Province Diamonds, Inc.* | 6,215 | 17,909 | ||||||
Nevsun Resources Ltd. | 15,979 | 35,410 | ||||||
New Gold, Inc.* | 10,615 | 30,045 | ||||||
Newcrest Mining Ltd. | 19,734 | 312,281 | ||||||
Nippon Light Metal Holdings Co. Ltd. | 417,400 | 932,382 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 40,810 | 919,113 | ||||||
Nisshin Steel Co. Ltd. | 5,500 | 67,202 | ||||||
Norsk Hydro ASA | 53,867 | 308,117 | ||||||
Northern Star Resources Ltd. | 22,935 | 73,410 | ||||||
Novagold Resources, Inc.* | 5,390 | 22,312 |
Shares | Value | |||||||
Metals & Mining – (continued) | ||||||||
OceanaGold Corp. | 25,700 | $ | 83,643 | |||||
Orocobre Ltd.* | 6,328 | 14,907 | ||||||
Osaka Steel Co. Ltd. | 1,000 | 18,911 | ||||||
OSAKA Titanium Technologies Co. Ltd.* | 1,000 | 14,659 | ||||||
Osisko Gold Royalties Ltd. | 4,620 | 49,130 | ||||||
Outokumpu OYJ | 8,221 | 78,914 | ||||||
Outotec OYJ* | 6,765 | 50,278 | ||||||
OZ Minerals Ltd. | 13,621 | 72,120 | ||||||
Pan American Silver Corp. | 3,300 | 55,245 | ||||||
Perseus Mining Ltd.* (a) | 31,528 | 6,838 | ||||||
Petra Diamonds Ltd.* | 363,990 | 610,773 | ||||||
Pilbara Minerals Ltd.* (b) | 33,040 | 8,401 | ||||||
Polymetal International plc | 8,885 | 116,674 | ||||||
Pretium Resources, Inc.* | 5,225 | 51,704 | ||||||
Randgold Resources Ltd. | 2,539 | 223,533 | ||||||
Regis Resources Ltd. | 353,050 | 863,373 | ||||||
Resolute Mining Ltd.(a) | 506,616 | 460,330 | ||||||
Rio Tinto Ltd.(a) | 11,263 | 509,088 | ||||||
Rio Tinto plc | 31,284 | 1,239,304 | ||||||
Salzgitter AG(a) | 26,756 | 917,054 | ||||||
Sandfire Resources NL | 17,696 | 76,625 | ||||||
Sandstorm Gold Ltd.* | 5,320 | 18,404 | ||||||
Sanyo Special Steel Co. Ltd. | 91,000 | 500,431 | ||||||
Saracen Mineral Holdings Ltd.* | 34,045 | 23,678 | ||||||
Seabridge Gold, Inc.* (a) | 2,255 | 23,221 | ||||||
SEMAFO, Inc.* | 17,791 | 40,857 | ||||||
Silver Standard Resources, Inc.* | 6,860 | 70,642 | ||||||
Silver Wheaton Corp. | 12,441 | 247,856 | ||||||
Sims Metal Management Ltd.(a) | 5,940 | 54,639 | ||||||
South32 Ltd. | 141,108 | 293,367 | ||||||
SSAB AB, Class A* | 6,914 | 30,155 | ||||||
SSAB AB, Class B* | 11,270 | 40,054 | ||||||
St Barbara Ltd.* | 345,312 | 697,252 | ||||||
Stornoway Diamond Corp.* | 28,500 | 17,092 | ||||||
Sumitomo Metal Mining Co. Ltd. | 15,000 | 203,396 | ||||||
Syrah Resources Ltd.* | 11,608 | 19,793 | ||||||
Tahoe Resources, Inc. | 6,671 | 53,961 | ||||||
Teck Resources Ltd., Class B | 12,012 | 248,797 | ||||||
thyssenkrupp AG(a) | 10,446 | 248,604 | ||||||
TMAC Resources, Inc.* (a) | 1,400 | 15,942 | ||||||
Toho Titanium Co. Ltd. | 200 | 1,355 | ||||||
Toho Zinc Co. Ltd. | 93,000 | 411,312 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 105 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Tokyo Steel Manufacturing Co. Ltd. | 70,500 | $ | 525,572 | |||||
Topy Industries Ltd.(a) | 13,300 | 362,120 | ||||||
Torex Gold Resources, Inc.* | 4,421 | 74,756 | ||||||
Turquoise Hill Resources Ltd.* | 16,776 | 45,642 | ||||||
UACJ Corp. | 12,000 | 31,865 | ||||||
Vedanta Resources plc | 4,984 | 44,588 | ||||||
voestalpine AG | 4,769 | 199,185 | ||||||
Western Areas Ltd.* | 6,440 | 10,692 | ||||||
Yamana Gold, Inc. | 20,832 | 55,916 | ||||||
Yamato Kogyo Co. Ltd. | 1,100 | 27,512 | ||||||
Yodogawa Steel Works Ltd. | 2,800 | 72,518 | ||||||
27,637,127 | ||||||||
Multiline Retail – 0.4% | ||||||||
B&M European Value Retail SA | 10,725 | 46,760 | ||||||
Canadian Tire Corp. Ltd., Class A | 1,718 | 209,331 | ||||||
Debenhams plc | 744,686 | 493,280 | ||||||
Dollarama, Inc. | 2,838 | 248,037 | ||||||
Don Quijote Holdings Co. Ltd. | 3,400 | 123,989 | ||||||
Europris ASA* (c) | 4,838 | 22,590 | ||||||
Fuji Co. Ltd. | 2,100 | 52,015 | ||||||
H2O Retailing Corp. | 3,215 | 54,482 | ||||||
Harvey Norman Holdings Ltd.(a) | 14,630 | 45,843 | ||||||
Hudson’s Bay Co.(a) | 4,000 | 36,510 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 14,000 | 152,848 | ||||||
Izumi Co. Ltd. | 1,300 | 65,076 | ||||||
J Front Retailing Co. Ltd. | 10,700 | 154,064 | ||||||
Kintetsu Department Store Co. Ltd.* | 18,000 | 56,518 | ||||||
Lifestyle International Holdings Ltd. | 31,500 | 44,956 | ||||||
Marks & Spencer Group plc | 74,316 | 352,472 | ||||||
Marui Group Co. Ltd. | 5,500 | 75,294 | ||||||
Myer Holdings Ltd. | 585,161 | 485,750 | ||||||
Next plc | 3,763 | 209,584 | ||||||
Parco Co. Ltd. | 15,000 | 156,096 | ||||||
Ryohin Keikaku Co. Ltd. | 600 | 135,319 | ||||||
Sanyo Electric Railway Co. Ltd. | 4,000 | 20,633 | ||||||
Seria Co. Ltd. | 1,000 | 44,855 | ||||||
Takashimaya Co. Ltd. | 13,000 | 119,656 |
Shares | Value | |||||||
Multiline Retail – (continued) | ||||||||
Warehouse Group Ltd. (The) | 64,930 | $ | 94,059 | |||||
3,500,017 | ||||||||
Multi-Utilities – 0.8% | ||||||||
A2A SpA | 59,895 | 89,029 | ||||||
ACEA SpA | 1,485 | 21,362 | ||||||
AGL Energy Ltd. | 17,226 | 344,735 | ||||||
Atco Ltd., Class I | 2,744 | 99,681 | ||||||
Canadian Utilities Ltd., Class A | 2,695 | 77,560 | ||||||
Centrica plc | 148,795 | 380,965 | ||||||
DUET Group | 75,424 | 170,346 | ||||||
E.ON SE | 92,445 | 720,481 | ||||||
Engie SA(a) | 71,280 | 1,005,184 | ||||||
Hera SpA | 23,474 | 67,126 | ||||||
Iren SpA | 50,848 | 107,143 | ||||||
Just Energy Group, Inc. | 65,363 | 398,689 | ||||||
National Grid plc | 100,584 | 1,301,305 | ||||||
REN – Redes Energeticas Nacionais SGPS SA* | 139,582 | 410,242 | ||||||
RWE AG* | 19,603 | 324,576 | ||||||
Suez(a) | 14,738 | 242,098 | ||||||
Telecom Plus plc | 3,958 | 64,008 | ||||||
Veolia Environnement SA(a) | 14,718 | 279,514 | ||||||
6,104,044 | ||||||||
Oil, Gas & Consumable Fuels – 4.8% | ||||||||
Advantage Oil & Gas Ltd.* | 8,745 | 54,940 | ||||||
Africa Oil Corp.* | 17,930 | 27,800 | ||||||
Aker BP ASA | 1,072 | 18,233 | ||||||
AltaGas Ltd. | 3,025 | 67,677 | ||||||
ARC Resources Ltd.(a) | 8,943 | 117,208 | ||||||
Baytex Energy Corp.* (a) | 169,379 | 511,618 | ||||||
Beach Energy Ltd. | 1,028,148 | 565,142 | ||||||
Birchcliff Energy Ltd. | 10,537 | 54,022 | ||||||
Bonavista Energy Corp. | 158,268 | 332,209 | ||||||
Bonterra Energy Corp. | 846 | 11,979 | ||||||
BP plc | 503,953 | 2,885,052 | ||||||
Brightoil Petroleum Holdings Ltd.* | 50,147 | 13,605 | ||||||
BW LPG Ltd.(a) (c) | 52,272 | 230,713 | ||||||
Cairn Energy plc* | 27,170 | 68,299 | ||||||
Caltex Australia Ltd. | 11,573 | 258,521 | ||||||
Cameco Corp. | 8,030 | 76,876 |
See Accompanying Notes to the Financial Statements.
106 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Canadian Natural Resources Ltd. | 28,314 | $ | 900,382 | |||||
Cenovus Energy, Inc. | 23,034 | 229,279 | ||||||
China Aviation Oil Singapore Corp. Ltd.(a) | 169,600 | 196,574 | ||||||
Cosmo Energy Holdings Co. Ltd. | 46,400 | 735,523 | ||||||
Crescent Point Energy Corp.(a) | 22,110 | 218,464 | ||||||
Crew Energy, Inc.* | 4,256 | 12,793 | ||||||
Delek Group Ltd. | 19 | 4,272 | ||||||
DNO ASA* (a) | 32,725 | 27,734 | ||||||
Enagas SA | 5,742 | 151,004 | ||||||
Enbridge Income Fund Holdings, Inc. | 2,145 | 52,554 | ||||||
Enbridge, Inc. | 41,434 | 1,714,573 | ||||||
Encana Corp. | 28,644 | 306,070 | ||||||
Enerplus Corp. | 19,866 | 143,114 | ||||||
Eni SpA | 68,904 | 1,070,721 | ||||||
Etablissements Maurel et Prom* | 26,008 | 98,275 | ||||||
Euronav NV | 93,033 | 737,727 | ||||||
Freehold Royalties Ltd. | 6,102 | 60,516 | ||||||
Galp Energia SGPS SA | 10,692 | 166,146 | ||||||
Gaztransport Et Technigaz SA | 15,972 | 596,048 | ||||||
Gibson Energy, Inc. | 1,301 | 17,612 | ||||||
Hoegh LNG Holdings Ltd. | 387 | 3,975 | ||||||
Husky Energy, Inc.* | 11,682 | 134,651 | ||||||
Idemitsu Kosan Co. Ltd. | 4,100 | 131,125 | ||||||
Imperial Oil Ltd. | 6,600 | 191,681 | ||||||
Inpex Corp. | 27,400 | 262,644 | ||||||
Inter Pipeline Ltd. | 8,399 | 170,830 | ||||||
Itochu Enex Co. Ltd. | 39,700 | 330,863 | ||||||
James Fisher & Sons plc | 1,760 | 36,569 | ||||||
Japan Petroleum Exploration Co. Ltd. | 200 | 4,376 | ||||||
JXTG Holdings, Inc. | 143,350 | 646,985 | ||||||
Kelt Exploration Ltd.* | 5,800 | 28,506 | ||||||
Keyera Corp.(a) | 3,752 | 103,672 | ||||||
Koninklijke Vopak NV(a) | 1,430 | 64,499 | ||||||
Lundin Petroleum AB* | 4,170 | 79,634 | ||||||
MEG Energy Corp.* | 11,712 | 52,937 | ||||||
Naphtha Israel Petroleum Corp. Ltd.* | 27,609 | 222,565 | ||||||
Neste OYJ(a) | 4,554 | 185,916 | ||||||
New Hope Corp. Ltd. | 12,694 | 15,949 |
Shares | Value | |||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
New Zealand Refining Co. Ltd. (The) | 122,953 | $ | 197,527 | |||||
Nippon Gas Co. Ltd. | 2,000 | 57,504 | ||||||
Nostrum Oil & Gas plc* | 4,768 | 27,660 | ||||||
NuVista Energy Ltd.* | 6,553 | 29,475 | ||||||
Oil Refineries Ltd. | 38,080 | 15,117 | ||||||
OMV AG | 6,204 | 285,603 | ||||||
Origin Energy Ltd.* | 71,478 | 383,806 | ||||||
Painted Pony Petroleum Ltd.* | 2,184 | 7,987 | ||||||
Paramount Resources Ltd., Class A* | 1,255 | 15,989 | ||||||
Parex Resources, Inc.* | 6,710 | 83,182 | ||||||
Parkland Fuel Corp. | 2,365 | 51,372 | ||||||
Paz Oil Co. Ltd. | 140 | 22,850 | ||||||
Pembina Pipeline Corp. | 10,344 | 329,089 | ||||||
Pengrowth Energy Corp.* (a) | 315,348 | 302,133 | ||||||
Peyto Exploration & Development Corp.(a) | 3,575 | 64,948 | ||||||
PrairieSky Royalty Ltd.(a) | 4,547 | 98,935 | ||||||
Raging River Exploration, Inc.* | 9,112 | 53,114 | ||||||
Repsol SA | 47,739 | 755,608 | ||||||
Royal Dutch Shell plc, Class A | 207,636 | 5,379,297 | ||||||
Royal Dutch Shell plc, Class B | 151,470 | 4,022,167 | ||||||
San-Ai Oil Co. Ltd. | 43,500 | 369,167 | ||||||
Santos Ltd.* | 37,140 | 96,658 | ||||||
Saras SpA | 253,742 | 529,967 | ||||||
Seven Generations Energy Ltd., Class A* | 5,456 | 96,447 | ||||||
Showa Shell Sekiyu KK | 10,200 | 98,550 | ||||||
Snam SpA | 67,200 | 296,954 | ||||||
Spartan Energy Corp.* (a) | 41,284 | 68,842 | ||||||
Statoil ASA | 27,300 | 451,574 | ||||||
Suncor Energy, Inc. | 42,900 | 1,342,253 | ||||||
TORC Oil & Gas Ltd. | 6,040 | 26,240 | ||||||
TOTAL SA(a) | 112,235 | 5,765,037 | ||||||
Tourmaline Oil Corp.* | 4,949 | 97,076 | ||||||
TransCanada Corp. | 20,761 | 962,358 | ||||||
Tullow Oil plc* (a) | 30,809 | 83,664 | ||||||
Veresen, Inc. | 7,831 | 87,227 | ||||||
Vermilion Energy, Inc.(a) | 2,352 | 82,672 | ||||||
Washington H Soul Pattinson & Co. Ltd. | 3,049 | 42,959 | ||||||
Whitecap Resources, Inc. | 10,560 | 74,607 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 107 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Whitehaven Coal Ltd.* | 24,365 | $ | 49,927 | |||||
Woodside Petroleum Ltd. | 18,084 | 435,206 | ||||||
Z Energy Ltd. | 8,800 | 45,010 | ||||||
38,686,410 | ||||||||
Paper & Forest Products – 0.6% | ||||||||
Ahlstrom-Munksjo OYJ* | 51,150 | 967,505 | ||||||
Altri SGPS SA | 71,544 | 333,835 | ||||||
Canfor Corp.* | 7,392 | 110,829 | ||||||
Daiken Corp. | 12,000 | 227,362 | ||||||
Daio Paper Corp.(a) | 3,745 | 47,472 | ||||||
Hokuetsu Kishu Paper Co. Ltd. | 4,900 | 34,155 | ||||||
Holmen AB, Class B | 2,035 | 85,814 | ||||||
Interfor Corp.* | 2,970 | 43,791 | ||||||
Metsa Board OYJ(a) | 6,595 | 46,824 | ||||||
Mondi plc | 16,566 | 428,860 | ||||||
Navigator Co. SA (The)* | 6,520 | 27,590 | ||||||
Nippon Paper Industries Co. Ltd.(a) | 4,700 | 88,839 | ||||||
Norbord, Inc. | 3,136 | 96,926 | ||||||
Oji Holdings Corp. | 30,000 | 145,061 | ||||||
Semapa-Sociedade de Investimento e Gestao | 20,501 | 321,474 | ||||||
Stella-Jones, Inc. | 1,045 | 33,047 | ||||||
Stora Enso OYJ, Class R(a) | 23,829 | 283,359 | ||||||
Tokushu Tokai Paper Co. Ltd. | 400 | 14,748 | ||||||
UPM-Kymmene OYJ | 23,827 | 628,682 | ||||||
West Fraser Timber Co. Ltd. | 2,757 | 123,685 | ||||||
Western Forest Products, Inc. | 275,220 | 432,768 | ||||||
4,522,626 | ||||||||
Personal Products – 0.9% | ||||||||
Asaleo Care Ltd.(a) | 264,237 | 354,709 | ||||||
Beiersdorf AG | 2,442 | 242,893 | ||||||
Blackmores Ltd. | 134 | 10,684 | ||||||
Ci:z Holdings Co. Ltd. | 1,800 | 52,803 | ||||||
euglena Co. Ltd.* (a) | 3,900 | 40,515 | ||||||
Fancl Corp. | 2,500 | 42,052 | ||||||
Interparfums SA | 448 | 15,367 | ||||||
Kao Corp. | 12,000 | 661,846 | ||||||
Kobayashi Pharmaceutical Co. Ltd. | 1,400 | 73,347 |
Shares | Value | |||||||
Personal Products – (continued) | ||||||||
Kose Corp. | 700 | $ | 66,377 | |||||
L’Oreal SA(a) | 6,345 | 1,263,382 | ||||||
Mandom Corp. | 1,300 | 61,694 | ||||||
Milbon Co. Ltd. | 300 | 14,506 | ||||||
Noevir Holdings Co. Ltd. | 1,900 | 78,236 | ||||||
Ontex Group NV | 1,029 | 34,322 | ||||||
Oriflame Holding AG* | 1,656 | 67,887 | ||||||
Pola Orbis Holdings, Inc.(a) | 2,000 | 46,075 | ||||||
Shiseido Co. Ltd. | 13,200 | 357,147 | ||||||
Unilever NV, CVA | 44,623 | 2,339,472 | ||||||
Unilever plc | 33,000 | 1,695,796 | ||||||
7,519,110 | ||||||||
Pharmaceuticals – 3.8% | ||||||||
ALK-Abello A/S | 344 | 53,641 | ||||||
Almirall SA | 2,295 | 41,436 | ||||||
ASKA Pharmaceutical Co. Ltd. | 1,300 | 19,068 | ||||||
Astellas Pharma, Inc. | 55,400 | 729,588 | ||||||
AstraZeneca plc | 32,510 | 1,950,524 | ||||||
Bayer AG (Registered) | 21,186 | 2,620,808 | ||||||
Boiron SA | 385 | 36,592 | ||||||
BTG plc* | 7,934 | 69,851 | ||||||
Chugai Pharmaceutical Co. Ltd. | 7,100 | 251,592 | ||||||
COSMO Pharmaceuticals NV | 110 | 17,835 | ||||||
Daiichi Sankyo Co. Ltd. | 15,900 | 352,747 | ||||||
Dechra Pharmaceuticals plc | 5,318 | 116,275 | ||||||
Eisai Co. Ltd. | 7,100 | 372,739 | ||||||
Faes Farma SA | 13,581 | 48,804 | ||||||
Galenica AG (Registered)(a) | 111 | 120,539 | ||||||
GlaxoSmithKline plc | 125,202 | 2,510,691 | ||||||
GW Pharmaceuticals plc* (b) | 10,945 | 104,077 | ||||||
H Lundbeck A/S | 1,320 | 67,645 | ||||||
Haw Par Corp. Ltd. | 3,200 | 23,376 | ||||||
Hikma Pharmaceuticals plc | 3,103 | 77,761 | ||||||
Hisamitsu Pharmaceutical Co., Inc. | 1,900 | 97,156 | ||||||
Hutchison China MediTech Ltd.* | 715 | 27,450 | ||||||
Indivior plc | 25,760 | 111,645 | ||||||
Ipsen SA | 770 | 89,593 | ||||||
JCR Pharmaceuticals Co. Ltd. | 600 | 12,827 | ||||||
Kaken Pharmaceutical Co. Ltd. | 1,600 | 94,878 | ||||||
Kissei Pharmaceutical Co. Ltd. | 1,400 | 36,523 | ||||||
KYORIN Holdings, Inc. | 1,000 | 20,920 |
See Accompanying Notes to the Financial Statements.
108 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Kyowa Hakko Kirin Co. Ltd. | 5,000 | $ | 85,763 | |||||
Mayne Pharma Group Ltd.* (a) | 59,285 | 59,632 | ||||||
Merck KGaA | 3,234 | 379,635 | ||||||
Mitsubishi Tanabe Pharma Corp. | 4,600 | 93,345 | ||||||
Mochida Pharmaceutical Co. Ltd. | 400 | 30,143 | ||||||
Nichi-iko Pharmaceutical Co. Ltd.(a) | 2,800 | 43,431 | ||||||
Nippon Shinyaku Co. Ltd. | 1,400 | 74,352 | ||||||
Novartis AG (Registered) | 67,254 | 5,171,826 | ||||||
Novo Nordisk A/S, Class B | 47,520 | 1,848,673 | ||||||
Ono Pharmaceutical Co. Ltd. | 13,800 | 284,369 | ||||||
Orion OYJ, Class A | 1,474 | 84,028 | ||||||
Orion OYJ, Class B | 1,450 | 83,133 | ||||||
Otsuka Holdings Co. Ltd. | 14,500 | 666,919 | ||||||
Recipharm AB, Class B* (a) | 2,145 | 29,675 | ||||||
Recordati SpA | 2,342 | 86,736 | ||||||
Roche Holding AG | 17,886 | 4,677,006 | ||||||
Roche Holding AG – BR | 792 | 207,259 | ||||||
Rohto Pharmaceutical Co. Ltd. | 1,000 | 18,651 | ||||||
Sanofi(a) | 30,294 | 2,857,147 | ||||||
Santen Pharmaceutical Co. Ltd. | 13,300 | 186,966 | ||||||
Sawai Pharmaceutical Co. Ltd. | 700 | 38,243 | ||||||
Seikagaku Corp. | 1,800 | 28,711 | ||||||
Shionogi & Co. Ltd. | 7,900 | 406,304 | ||||||
Sosei Group Corp.* | 300 | 30,815 | ||||||
STADA Arzneimittel AG | 2,184 | 154,659 | ||||||
Sumitomo Dainippon Pharma Co. Ltd.(a) | 3,800 | 62,316 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 1,400 | 115,044 | ||||||
Takeda Pharmaceutical Co. Ltd. | 16,900 | 809,902 | ||||||
Teva Pharmaceutical Industries Ltd. | 45,420 | 1,436,726 | ||||||
Torii Pharmaceutical Co. Ltd. | 700 | 17,018 | ||||||
Towa Pharmaceutical Co. Ltd. | 7,000 | 349,152 | ||||||
Tsumura & Co. | 900 | 29,107 | ||||||
UCB SA(a) | 3,301 | 257,231 | ||||||
United Laboratories International Holdings Ltd. (The)* | 130,000 | 81,568 | ||||||
Valeant Pharmaceuticals International, Inc.* (a) | 14,195 | 131,304 |
Shares | Value | |||||||
Pharmaceuticals – (continued) | ||||||||
Vectura Group plc* | 27,225 | $ | 49,699 | |||||
Virbac SA* | 281 | 44,232 | ||||||
ZERIA Pharmaceutical Co. Ltd. | 3,100 | 46,554 | ||||||
31,133,855 | ||||||||
Professional Services – 1.0% | ||||||||
Adecco Group AG (Registered)* | 6,732 | 499,769 | ||||||
AF AB, Class B | 3,322 | 69,930 | ||||||
ALS Ltd. | 11,071 | 51,747 | ||||||
Applus Services SA | 92,567 | 1,160,218 | ||||||
Bertrandt AG | 277 | 28,918 | ||||||
Brunel International NV | 2,003 | 34,026 | ||||||
Bureau Veritas SA | 7,590 | 175,758 | ||||||
Capita plc | 28,911 | 207,964 | ||||||
DKSH Holding AG | 660 | 53,074 | ||||||
en-japan, Inc. | 1,000 | 22,221 | ||||||
Experian plc | 24,948 | 535,467 | ||||||
Funai Soken Holdings, Inc. | 1,800 | 34,589 | ||||||
Groupe Crit | 2,316 | 194,321 | ||||||
Hays plc | 34,264 | 75,891 | ||||||
Intertek Group plc | 4,092 | 215,255 | ||||||
Intertrust NV(a)(c) | 1,540 | 30,856 | ||||||
IPH Ltd. | 4,648 | 16,581 | ||||||
JAC Recruitment Co. Ltd. | 1,300 | 19,954 | ||||||
McMillan Shakespeare Ltd. | 54,825 | 554,742 | ||||||
Meitec Corp. | 2,400 | 103,669 | ||||||
Morneau Shepell, Inc. | 2,428 | 35,782 | ||||||
Nihon M&A Center, Inc. | 1,200 | 41,015 | ||||||
Nomura Co. Ltd. | 3,000 | 57,352 | ||||||
Outsourcing, Inc. | 600 | 23,011 | ||||||
Pagegroup plc | 20,728 | 134,084 | ||||||
Randstad Holding NV | 3,390 | 201,964 | ||||||
Recruit Holdings Co. Ltd. | 10,600 | 535,373 | ||||||
RELX NV(a) | 27,126 | 524,462 | ||||||
RELX plc | 28,141 | 570,140 | ||||||
SEEK Ltd. | 7,421 | 94,568 | ||||||
SGS SA (Registered) | 110 | 247,416 | ||||||
Stantec, Inc. | 3,052 | 78,192 | ||||||
Synergie SA | 4,610 | 192,369 | ||||||
TechnoPro Holdings, Inc. | 1,900 | 74,316 | ||||||
Teleperformance | 1,452 | 182,386 | ||||||
Temp Holdings Co. Ltd. | 5,700 | 107,281 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 109 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Professional Services – (continued) | ||||||||
Wolters Kluwer NV(a) | 7,920 | $ | 336,269 | |||||
WS Atkins plc | 7,269 | 201,910 | ||||||
7,722,840 | ||||||||
Real Estate Management & Development – 2.8% | ||||||||
ADO Group Ltd.* | 8,391 | 104,964 | ||||||
ADO Properties SA(c) | 1,742 | 63,738 | ||||||
Aeon Mall Co. Ltd. | 7,690 | 130,593 | ||||||
Africa Israel Properties Ltd.* | 8,999 | 181,484 | ||||||
Airport City Ltd.* | 3,579 | 47,371 | ||||||
Allreal Holding AG (Registered)* | 583 | 100,266 | ||||||
Alrov Properties and Lodgings Ltd. | 560 | 15,319 | ||||||
Altus Group Ltd. | 1,760 | 39,646 | ||||||
Amot Investments Ltd. | 14,530 | 69,283 | ||||||
Atrium European Real Estate Ltd.* | 112,742 | 475,121 | ||||||
Atrium Ljungberg AB, Class B | 1,034 | 17,107 | ||||||
Aveo Group | 21,223 | 49,996 | ||||||
Azrieli Group Ltd. | 639 | 34,053 | ||||||
Bayside Land Corp. | 144 | 62,815 | ||||||
Big Shopping Centers Ltd. | 2,356 | 170,334 | ||||||
Blue Square Real Estate Ltd. | 336 | 15,789 | ||||||
BUWOG AG* | 1,760 | 47,511 | ||||||
CA Immobilien Anlagen AG* | 1,760 | 38,551 | ||||||
Capital & Counties Properties plc | 16,280 | 66,515 | ||||||
CapitaLand Ltd.* | 66,000 | 177,549 | ||||||
Castellum AB | 10,839 | 148,481 | ||||||
Cheung Kong Property Holdings Ltd. | 132,000 | 947,033 | ||||||
China Baoli Technologies Holdings Ltd.* | 1,400,000 | 36,721 | ||||||
Chinese Estates Holdings Ltd. | 14,000 | 21,529 | ||||||
City Developments Ltd. | 13,300 | 102,674 | ||||||
Citycon OYJ | 17,169 | 42,216 | ||||||
CLS Holdings plc(a) | 1,424 | 35,741 | ||||||
Colliers International Group, Inc. | 1,940 | 94,836 | ||||||
D Carnegie & Co. AB* | 5,768 | 70,025 | ||||||
Daejan Holdings plc | 6,379 | 560,367 | ||||||
Daibiru Corp. | 400 | 3,689 | ||||||
Daikyo, Inc. | 2,000 | 4,163 |
Shares | Value | |||||||
Real Estate Management & Development – (continued) | ||||||||
Daito Trust Construction Co. Ltd. | 1,900 | $ | 279,537 | |||||
Daiwa House Industry Co. Ltd. | 29,400 | 873,270 | ||||||
Deutsche EuroShop AG | 1,157 | 46,951 | ||||||
Deutsche Wohnen AG | 8,712 | 297,795 | ||||||
Emperor International Holdings Ltd. | 604,000 | 186,383 | ||||||
Fabege AB | 3,190 | 54,975 | ||||||
Far East Consortium International Ltd. | 768,226 | 366,455 | ||||||
Fastighets AB Balder, Class B* (a) | 2,530 | 56,516 | ||||||
FastPartner AB* | 280 | 4,459 | ||||||
First Capital Realty, Inc. | 1,846 | 26,786 | ||||||
FirstService Corp. | 1,780 | 110,591 | ||||||
Gateway Lifestyle | 15,070 | 24,005 | ||||||
Gazit-Globe Ltd. | 3,940 | 39,980 | ||||||
Global Logistic Properties Ltd. | 70,000 | 144,237 | ||||||
Goldcrest Co. Ltd. | 14,200 | 252,229 | ||||||
Grainger plc | 22,537 | 72,864 | ||||||
Great Eagle Holdings Ltd. | 8,424 | 41,808 | ||||||
GuocoLand Ltd. | 8,800 | 11,490 | ||||||
Hang Lung Group Ltd. | 27,000 | 112,651 | ||||||
Hang Lung Properties Ltd. | 54,000 | 141,638 | ||||||
Heiwa Real Estate Co. Ltd. | 23,400 | 372,821 | ||||||
Hemfosa Fastigheter AB | 10,627 | 98,531 | ||||||
Henderson Land Development Co. Ltd. | 23,772 | 150,685 | ||||||
Hiag Immobilien Holding AG* | 112 | 13,828 | ||||||
HKR International Ltd.* | 545,600 | 294,633 | ||||||
Ho Bee Land Ltd. | 135,100 | 235,847 | ||||||
Hufvudstaden AB, Class A | 2,640 | 41,382 | ||||||
Hulic Co. Ltd. | 8,800 | 82,892 | ||||||
Hysan Development Co. Ltd. | 19,000 | 89,655 | ||||||
Ichigo, Inc. | 6,700 | 19,474 | ||||||
IMMOFINANZ AG(a) | 18,810 | 39,123 | ||||||
Inmobiliaria Colonial SA | 3,696 | 28,652 | ||||||
Intershop Holding AG | 55 | 26,479 | ||||||
Investors Cloud Co. Ltd. | 500 | 18,682 | ||||||
Jerusalem Oil Exploration* | 6,286 | 365,377 | ||||||
Jeudan A/S* | 112 | 11,274 | ||||||
K Wah International Holdings Ltd. | 823,851 | 523,278 | ||||||
Kabuki-Za Co. Ltd. | 1,000 | 46,201 |
See Accompanying Notes to the Financial Statements.
110 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Kenedix, Inc. | 13,500 | $ | 62,250 | |||||
Kennedy Wilson Europe Real Estate plc | 74,448 | 1,000,735 | ||||||
Kerry Properties Ltd. | 39,000 | 145,920 | ||||||
Klovern AB, Class B* | 346,236 | 364,817 | ||||||
Kowloon Development Co. Ltd. | 219,000 | 242,440 | ||||||
Kungsleden AB(a) | 146,354 | 819,799 | ||||||
Lai Sun Development Co. Ltd. | 7,500,000 | 211,185 | ||||||
Langham Hospitality Investments and Langham Hospitality Investments Ltd. | 143,500 | 59,411 | ||||||
LEG Immobilien AG* | 1,400 | 120,224 | ||||||
LendLease Group | 22,902 | 274,550 | ||||||
Leopalace21 Corp. | 7,900 | 41,956 | ||||||
Market Tech Holdings Ltd.* | 3,248 | 7,847 | ||||||
Melisron Ltd. | 817 | 44,577 | ||||||
Mitsubishi Estate Co. Ltd. | 31,382 | 599,656 | ||||||
Mitsui Fudosan Co. Ltd. | 24,000 | 527,389 | ||||||
Mobimo Holding AG (Registered)* | 252 | 67,718 | ||||||
Morguard Corp. | 3,630 | 512,363 | ||||||
New World Development Co. Ltd. | 152,639 | 190,172 | ||||||
Nexity SA | 1,545 | 83,978 | ||||||
Nomura Real Estate Holdings, Inc. | 5,800 | 97,976 | ||||||
Norstar Holdings, Inc. | 12,117 | 249,052 | ||||||
NTT Urban Development Corp. | 3,200 | 28,851 | ||||||
Open House Co. Ltd. | 21,800 | 534,684 | ||||||
Oxley Holdings Ltd. | 283,100 | 115,452 | ||||||
PATRIZIA Immobilien AG* | 1,875 | 36,977 | ||||||
Perennial Real Estate Holdings Ltd.(a) | 322,400 | 204,138 | ||||||
Property & Building Corp. Ltd. | 1,718 | 166,781 | ||||||
PSP Swiss Property AG (Registered) | 817 | 73,209 | ||||||
Relo Group, Inc. | 2,270 | 37,267 | ||||||
S IMMO AG* | 3,095 | 40,444 | ||||||
Sagax AB, Class B(a) | 4,852 | 50,439 | ||||||
Savills plc | 99,303 | 1,193,517 | ||||||
SEA Holdings Ltd. | 10,000 | 25,149 | ||||||
Servcorp Ltd. | 3,080 | 13,567 |
Shares | Value | |||||||
Real Estate Management & Development – (continued) | ||||||||
Sinarmas Land Ltd. | 65,600 | $ | 21,355 | |||||
Sino Land Co. Ltd. | 149,233 | 252,893 | ||||||
Sponda OYJ | 8,195 | 36,160 | ||||||
St Modwen Properties plc | 7,585 | 35,867 | ||||||
Sumitomo Real Estate Sales Co. Ltd. | 1,100 | 35,427 | ||||||
Sumitomo Realty & Development Co. Ltd. | 11,000 | 296,636 | ||||||
Summit Real Estate Holdings Ltd. | 35,622 | 265,117 | ||||||
Sun Hung Kai Properties Ltd. | 34,435 | 516,688 | ||||||
Swire Pacific Ltd., Class A | 16,000 | 154,085 | ||||||
Swire Pacific Ltd., Class B | 42,500 | 72,131 | ||||||
Swire Properties Ltd. | 20,400 | 68,459 | ||||||
Swiss Prime Site AG (Registered)* | 1,872 | 162,198 | ||||||
TAG Immobilien AG | 7,460 | 106,175 | ||||||
TAI Cheung Holdings Ltd. | 264,000 | 248,469 | ||||||
Takara Leben Co. Ltd.(a) | 61,736 | 290,210 | ||||||
TLG Immobilien AG | 2,475 | 50,062 | ||||||
TOC Co. Ltd. | 4,900 | 44,529 | ||||||
Tokyo Tatemono Co. Ltd. | 7,000 | 95,514 | ||||||
Tokyu Fudosan Holdings Corp. | 27,800 | 151,632 | ||||||
Tricon Capital Group, Inc. | 5,225 | 41,042 | ||||||
United Industrial Corp. Ltd.* | 5,600 | 12,661 | ||||||
Unizo Holdings Co. Ltd. | 14,500 | 369,817 | ||||||
UOL Group Ltd. | 26,389 | 136,693 | ||||||
Victoria Park AB, Class A | 3,808 | 10,579 | ||||||
Victoria Park AB, Class B | 7,869 | 21,950 | ||||||
Vonovia SE | 11,418 | 413,232 | ||||||
Wallenstam AB, Class B | 5,225 | 44,551 | ||||||
Wang On Properties Ltd.* | 76,000 | 16,514 | ||||||
Wharf Holdings Ltd. (The) | 48,000 | 410,103 | ||||||
Wheelock & Co. Ltd. | 29,000 | 226,144 | ||||||
Wihlborgs Fastigheter AB(a) | 4,169 | 81,263 | ||||||
Wing Tai Holdings Ltd. | 59,200 | 80,052 | ||||||
Yoma Strategic Holdings Ltd. | 62,900 | 26,101 | ||||||
22,617,713 | ||||||||
Road & Rail – 1.5% | ||||||||
Aurizon Holdings Ltd. | 1,177 | 4,533 | ||||||
Canadian National Railway Co. | 19,866 | 1,433,612 | ||||||
Canadian Pacific Railway Ltd. | 3,564 | 545,196 | ||||||
Central Japan Railway Co. | 8,500 | 1,424,800 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 111 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Road & Rail – (continued) | ||||||||
ComfortDelGro Corp. Ltd. | 36,000 | $ | 70,573 | |||||
DSV A/S | 4,884 | 272,025 | ||||||
East Japan Railway Co. | 9,500 | 848,327 | ||||||
Europcar Groupe SA* (c) | 3,289 | 40,113 | ||||||
Firstgroup plc* | 862,092 | 1,522,428 | ||||||
Fukuyama Transporting Co. Ltd. | 5,000 | 30,412 | ||||||
Go-Ahead Group plc | 27,868 | 630,949 | ||||||
Hankyu Hanshin Holdings, Inc. | 5,400 | 178,272 | ||||||
Hitachi Transport System Ltd. | 2,700 | 57,381 | ||||||
Keikyu Corp. | 10,000 | 114,739 | ||||||
Keio Corp. | 14,000 | 112,030 | ||||||
Keisei Electric Railway Co. Ltd. | 3,500 | 83,238 | ||||||
Kintetsu Group Holdings Co. Ltd. | 72,000 | 262,887 | ||||||
MTR Corp. Ltd. | 35,174 | 202,608 | ||||||
Nagoya Railroad Co. Ltd. | 29,000 | 133,202 | ||||||
Nankai Electric Railway Co. Ltd. | 15,000 | 73,742 | ||||||
National Express Group plc | 17,820 | 82,374 | ||||||
Nikkon Holdings Co. Ltd. | 2,600 | 54,370 | ||||||
Nippon Express Co. Ltd. | 34,000 | 186,669 | ||||||
Nishi-Nippon Railroad Co. Ltd. | 5,000 | 21,127 | ||||||
Nobina AB(c) | 4,965 | 30,279 | ||||||
Odakyu Electric Railway Co. Ltd. | 7,000 | 135,768 | ||||||
Sakai Moving Service Co. Ltd. | 6,600 | 192,132 | ||||||
Sankyu, Inc. | 11,669 | 74,220 | ||||||
Seino Holdings Co. Ltd. | 7,500 | 86,862 | ||||||
Senko Group Holdings Co. Ltd. | 96,000 | 625,244 | ||||||
Sixt SE(a) | 550 | 30,425 | ||||||
Sixt SE (Preference) | 238 | 10,631 | ||||||
Sotetsu Holdings, Inc. | 15,000 | 69,705 | ||||||
Stagecoach Group plc | 332,486 | 875,363 | ||||||
Stef SA | 2,508 | 225,260 | ||||||
TFI International, Inc. | 3,300 | 71,730 | ||||||
Tobu Railway Co. Ltd. | 20,000 | 101,373 | ||||||
Tokyu Corp. | 23,000 | 164,654 | ||||||
Trancom Co. Ltd. | 600 | 30,143 | ||||||
Transport International Holdings Ltd. | 180,800 | 563,725 | ||||||
VTG AG | 749 | 24,713 | ||||||
West Japan Railway Co. | 7,500 | 500,852 | ||||||
12,198,686 |
Shares | Value | |||||||
Semiconductors & Semiconductor Equipment – 0.6% | ||||||||
Advantest Corp. | 3,100 | $ | 57,873 | |||||
ams AG | 3,835 | 246,562 | ||||||
ASM International NV | 677 | 40,731 | ||||||
ASM Pacific Technology Ltd.(a) | 5,000 | 74,445 | ||||||
ASML Holding NV(a) | 11,569 | 1,528,775 | ||||||
BE Semiconductor Industries NV | 1,625 | 84,867 | ||||||
Dialog Semiconductor plc* | 2,800 | 130,957 | ||||||
Disco Corp. | 800 | 126,456 | ||||||
Infineon Technologies AG | 28,776 | 595,377 | ||||||
Japan Material Co. Ltd. | 1,300 | 21,295 | ||||||
Melexis NV | 495 | 41,241 | ||||||
Micronics Japan Co. Ltd. | 1,800 | 15,631 | ||||||
Nordic Semiconductor ASA* (a) | 8,723 | 35,029 | ||||||
NuFlare Technology, Inc. | 2,900 | 153,754 | ||||||
Renesas Electronics Corp.* (a) | 6,300 | 59,909 | ||||||
Rohm Co. Ltd. | 2,200 | 154,338 | ||||||
SCREEN Holdings Co. Ltd. | 1,800 | 130,636 | ||||||
Shindengen Electric Manufacturing Co. Ltd. | 66,000 | 306,109 | ||||||
Shinko Electric Industries Co. Ltd. | 5,800 | 41,418 | ||||||
STMicroelectronics NV | 21,516 | 347,933 | ||||||
Sumco Corp. | 4,100 | 71,687 | ||||||
Tokyo Electron Ltd. | 3,900 | 453,606 | ||||||
Tokyo Seimitsu Co. Ltd. | 1,400 | 43,393 | ||||||
Tower Semiconductor Ltd.* | 3,423 | 75,302 | ||||||
u-blox Holding AG* | 355 | 78,635 | ||||||
Ulvac, Inc. | 1,700 | 79,761 | ||||||
4,995,720 | ||||||||
Software – 0.8% | ||||||||
Altium Ltd. | 4,015 | 24,621 | ||||||
AVEVA Group plc | 2,695 | 71,023 | ||||||
Capcom Co. Ltd.(a) | 1,300 | 28,036 | ||||||
COLOPL, Inc.(a) | 3,000 | 27,694 | ||||||
Computer Modelling Group Ltd. | 3,504 | 27,677 | ||||||
Constellation Software, Inc. | 532 | 242,919 | ||||||
Dassault Systemes SE | 3,498 | 312,083 | ||||||
Descartes Systems Group, Inc. (The)* | 4,000 | 92,152 | ||||||
Enghouse Systems Ltd. | 825 | 36,112 | ||||||
Fidessa Group plc | 2,467 | 75,547 | ||||||
Fuji Soft, Inc. | 1,600 | 42,214 | ||||||
Gemalto NV | 1,792 | 100,341 |
See Accompanying Notes to the Financial Statements.
112 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
GungHo Online Entertainment, Inc. | 18,500 | $ | 41,491 | |||||
Hansen Technologies Ltd. | 13,204 | 35,549 | ||||||
Hilan Ltd. | 1,569 | 27,572 | ||||||
IGG, Inc. | 75,000 | 114,175 | ||||||
Justsystems Corp. | 5,600 | 67,168 | ||||||
Kinaxis, Inc.* | 1,436 | 85,963 | ||||||
Koei Tecmo Holdings Co. Ltd. | 1,440 | 29,195 | ||||||
Konami Holdings Corp. | 2,200 | 91,478 | ||||||
LINE Corp.* (a) | 900 | 31,206 | ||||||
Micro Focus International plc | 4,920 | 164,733 | ||||||
Miroku Jyoho Service Co. Ltd. | 1,000 | 18,956 | ||||||
MYOB Group Ltd. | 7,301 | 19,219 | ||||||
Nemetschek SE | 770 | 52,825 | ||||||
Nexon Co. Ltd. | 3,500 | 59,500 | ||||||
Nice Ltd. | 1,452 | 99,481 | ||||||
Nintendo Co. Ltd. | 3,000 | 754,777 | ||||||
NSD Co. Ltd. | 2,580 | 42,032 | ||||||
Open Text Corp. | 6,902 | 238,917 | ||||||
Oracle Corp. Japan | 800 | 46,075 | ||||||
Paradox Interactive AB* | 952 | 7,096 | ||||||
Playtech plc | 6,010 | 74,566 | ||||||
Pushpay Holdings Ltd.* | 7,504 | 8,758 | ||||||
Rentian Technology Holdings Ltd.* | 2,640,000 | 147,656 | ||||||
Sage Group plc (The) | 29,040 | 251,722 | ||||||
SAP SE | 24,704 | 2,476,814 | ||||||
Silverlake Axis Ltd. | 56,400 | 22,799 | ||||||
SimCorp A/S | 1,868 | 117,088 | ||||||
Software AG | 1,320 | 58,072 | ||||||
Sophos Group plc(c) | 11,880 | 51,996 | ||||||
Square Enix Holdings Co. Ltd. | 1,800 | 51,835 | ||||||
Starbreeze AB* | 14,536 | 27,251 | ||||||
Systena Corp. | 1,300 | 22,333 | ||||||
Technology One Ltd. | 8,800 | 35,933 | ||||||
Temenos Group AG (Registered)* | 1,377 | 119,171 | ||||||
Trend Micro, Inc. | 2,500 | 109,895 | ||||||
Ubisoft Entertainment SA* | 2,091 | 99,049 | ||||||
Vista Group International Ltd. | 7,228 | 29,129 | ||||||
WiseTech Global Ltd. | 4,953 | 21,484 |
Shares | Value | |||||||
Software – (continued) | ||||||||
Xero Ltd.* | 1,674 | $ | 24,997 | |||||
6,858,375 | ||||||||
Specialty Retail – 1.9% | ||||||||
ABC-Mart, Inc. | 700 | 38,871 | ||||||
Adastria Co. Ltd. | 900 | 22,357 | ||||||
Alpen Co. Ltd. | 2,500 | 44,833 | ||||||
AOKI Holdings, Inc. | 30,500 | 376,222 | ||||||
Aoyama Trading Co. Ltd. | 1,300 | 46,416 | ||||||
AP Eagers Ltd. | 1,953 | 11,728 | ||||||
Arcland Sakamoto Co. Ltd. | 23,300 | 288,245 | ||||||
Autobacs Seven Co. Ltd. | 1,400 | 21,175 | ||||||
Automotive Holdings Group Ltd. | 185,945 | 518,690 | ||||||
BCA Marketplace plc(a) | 35,365 | 89,906 | ||||||
Bic Camera, Inc. | 4,100 | 40,790 | ||||||
Bilia AB, Class A | 1,642 | 32,915 | ||||||
Card Factory plc | 11,627 | 48,752 | ||||||
Chiyoda Co. Ltd. | 2,800 | 69,856 | ||||||
Chow Sang Sang Holdings International Ltd.(a) | 285,000 | 729,214 | ||||||
Chow Tai Fook Jewellery Group Ltd. | 42,800 | 46,996 | ||||||
Clas Ohlson AB, Class B | 3,046 | 50,567 | ||||||
DCM Holdings Co. Ltd.(a) | 81,200 | 707,322 | ||||||
Delek Automotive Systems Ltd. | 25,837 | 226,982 | ||||||
Dixons Carphone plc | 40,788 | 177,042 | ||||||
Dufry AG (Registered)* | 715 | 117,078 | ||||||
Dunelm Group plc | 6,190 | 48,570 | ||||||
EDION Corp.(a) | 61,900 | 603,618 | ||||||
Esprit Holdings Ltd.* | 42,000 | 32,617 | ||||||
Fast Retailing Co. Ltd. | 1,500 | 489,280 | ||||||
Fenix Outdoor International AG | 366 | 35,505 | ||||||
Fielmann AG(a) | 603 | 46,083 | ||||||
Geo Holdings Corp. | 24,200 | 267,249 | ||||||
Giordano International Ltd. | 110,000 | 59,119 | ||||||
GrandVision NV(c) | 1,265 | 33,019 | ||||||
Greencross Ltd. | 5,833 | 29,663 | ||||||
Groupe Fnac SA* | 751 | 52,748 | ||||||
Halfords Group plc(a) | 144,874 | 700,616 | ||||||
Hennes & Mauritz AB, Class B | 24,816 | 614,879 | ||||||
Hikari Tsushin, Inc. | 600 | 57,594 | ||||||
Hornbach Baumarkt AG | 5,039 | 164,589 | ||||||
Hornbach Holding AG & Co. KGaA | 6,270 | 484,700 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 113 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
IDOM, Inc.(a) | 46,200 | $ | 242,460 | |||||
Industria de Diseno Textil SA | 28,908 | 1,108,388 | ||||||
JB Hi-Fi Ltd. | 4,687 | 86,543 | ||||||
JD Sports Fashion plc | 8,615 | 49,598 | ||||||
JINS, Inc. | 900 | 48,443 | ||||||
Joshin Denki Co. Ltd. | 38,000 | 404,647 | ||||||
Joyful Honda Co. Ltd. | 4,200 | 139,033 | ||||||
Kingfisher plc | 59,202 | 261,410 | ||||||
Kohnan Shoji Co. Ltd.(a) | 19,800 | 382,429 | ||||||
Komeri Co. Ltd. | 1,000 | 24,527 | ||||||
K’s Holdings Corp. | 3,000 | 57,729 | ||||||
Laox Co. Ltd.* (a) | 3,500 | 16,767 | ||||||
Leon’s Furniture Ltd. | 1,650 | 20,479 | ||||||
L’Occitane International SA | 8,750 | 18,338 | ||||||
Luk Fook Holdings International Ltd. | 16,672 | 60,986 | ||||||
Maisons du Monde SA* (c) | 1,904 | 66,057 | ||||||
Mekonomen AB(a) | 17,293 | 342,743 | ||||||
Nafco Co. Ltd. | 13,200 | 209,954 | ||||||
Nishimatsuya Chain Co. Ltd. | 2,000 | 21,261 | ||||||
Nitori Holdings Co. Ltd. | 2,000 | 260,339 | ||||||
Nojima Corp. | 26,400 | 393,857 | ||||||
PAL GROUP Holdings Co. Ltd. | 8,300 | 220,623 | ||||||
Pets at Home Group plc(a) | 279,455 | 678,258 | ||||||
Premier Investments Ltd. | 2,860 | 28,062 | ||||||
RCG Corp. Ltd.(a) | 15,344 | 9,524 | ||||||
Sa Sa International Holdings Ltd. | 189,155 | 80,988 | ||||||
Sanrio Co. Ltd. | 1,200 | 21,929 | ||||||
Shimachu Co. Ltd. | 1,400 | 32,366 | ||||||
Shimamura Co. Ltd. | 500 | 68,449 | ||||||
Sleep Country Canada Holdings, Inc.(c) | 1,952 | 50,410 | ||||||
Sports Direct International plc* (a) | 10,120 | 40,155 | ||||||
Super Retail Group Ltd. | 6,270 | 44,311 | ||||||
SuperGroup plc | 2,592 | 53,487 | ||||||
T-Gaia Corp. | 14,000 | 241,518 | ||||||
United Arrows Ltd. | 17,200 | 532,341 | ||||||
USS Co. Ltd. | 6,200 | 109,572 | ||||||
Valora Holding AG (Registered) | 109 | 37,394 | ||||||
Vita Group Ltd. | 5,810 | 9,863 | ||||||
VT Holdings Co. Ltd. | 63,400 | 322,489 |
Shares | Value | |||||||
Specialty Retail – (continued) | ||||||||
WH Smith plc | 2,633 | $ | 60,260 | |||||
Xebio Holdings Co. Ltd. | 18,200 | 302,544 | ||||||
XXL ASA(a)(c) | 3,250 | 35,093 | ||||||
Yamada Denki Co. Ltd.(a) | 35,700 | 187,355 | ||||||
Yellow Hat Ltd. | 13,300 | 305,684 | ||||||
15,114,469 | ||||||||
Technology Hardware, Storage & Peripherals – 0.7% | ||||||||
BlackBerry Ltd.* | 12,455 | 116,142 | ||||||
Brother Industries Ltd. | 13,500 | 277,460 | ||||||
Canon, Inc. | 47,500 | 1,574,953 | ||||||
China Goldjoy Group Ltd. | 128,000 | 10,039 | ||||||
Eizo Corp. | 14,600 | 482,650 | ||||||
Elecom Co. Ltd. | 5,600 | 115,748 | ||||||
FUJIFILM Holdings Corp. | 13,200 | 489,538 | ||||||
Hitachi Maxell Ltd. | 26,800 | 529,172 | ||||||
Konica Minolta, Inc. | 22,000 | 194,402 | ||||||
Logitech International SA (Registered) | 3,669 | 122,552 | ||||||
Melco Holdings, Inc. | 6,600 | 186,804 | ||||||
NEC Corp. | 102,000 | 253,467 | ||||||
Neopost SA | 24,618 | 998,053 | ||||||
Ricoh Co. Ltd. | 33,600 | 279,724 | ||||||
Riso Kagaku Corp. | 1,700 | 29,907 | ||||||
Seiko Epson Corp. | 13,400 | 274,083 | ||||||
Tobii AB* | 2,408 | 13,243 | ||||||
Toshiba TEC Corp. | 19,000 | 99,542 | ||||||
Wacom Co. Ltd. | 9,100 | 33,716 | ||||||
6,081,195 | ||||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||
adidas AG | 5,346 | 1,070,579 | ||||||
Asics Corp. | 3,500 | 61,886 | ||||||
Brunello Cucinelli SpA(a) | 2,164 | 56,650 | ||||||
Burberry Group plc | 10,824 | 226,017 | ||||||
Christian Dior SE | 1,393 | 382,185 | ||||||
Cie Financiere Richemont SA (Registered) | 13,662 | 1,141,188 | ||||||
Delta-Galil Industries Ltd. | 5,940 | 182,479 | ||||||
Descente Ltd. | 2,800 | 33,986 | ||||||
Gildan Activewear, Inc. | 6,336 | 177,341 | ||||||
Global Brands Group Holding Ltd.* | 4,150,000 | 490,900 |
See Accompanying Notes to the Financial Statements.
114 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Goldwin, Inc. | 300 | $ | 15,744 | |||||
Gunze Ltd. | 7,000 | 28,321 | ||||||
HengTen Networks Group Ltd.* | 224,000 | 4,205 | ||||||
Hermes International | 528 | 252,525 | ||||||
HUGO BOSS AG(a) | 1,590 | 120,906 | ||||||
Japan Wool Textile Co. Ltd. (The) | 50,000 | 392,034 | ||||||
Kering | 1,782 | 552,172 | ||||||
Kurabo Industries Ltd. | 156,000 | 348,470 | ||||||
Li & Fung Ltd.(a) | 230,000 | 96,406 | ||||||
Luxottica Group SpA | 3,564 | 206,470 | ||||||
LVMH Moet Hennessy Louis Vuitton SE(a) | 7,086 | 1,747,742 | ||||||
Moncler SpA | 3,061 | 75,532 | ||||||
Onward Holdings Co. Ltd. | 6,000 | 44,622 | ||||||
OVS SpA(c) | 92,828 | 617,630 | ||||||
Pacific Textiles Holdings Ltd. | 12,000 | 13,315 | ||||||
Pandora A/S | 3,036 | 328,058 | ||||||
Puma SE | 13 | 5,074 | ||||||
Regina Miracle International Holdings Ltd.(c) | 20,000 | 15,635 | ||||||
Salvatore Ferragamo SpA | 939 | 30,072 | ||||||
Samsonite International SA | 36,300 | 140,252 | ||||||
Season Pacific Holdings Ltd.* | 11,000 | 764 | ||||||
Seiko Holdings Corp. | 97,000 | 403,768 | ||||||
Seiren Co. Ltd. | 42,900 | 636,553 | ||||||
Stella International Holdings Ltd.(a) | 389,000 | 676,213 | ||||||
Swatch Group AG (The) | 660 | 264,079 | ||||||
Swatch Group AG (The) (Registered) | 2,529 | 196,131 | ||||||
Ted Baker plc | 1,265 | 45,743 | ||||||
Texwinca Holdings Ltd.(a) | 536,000 | 359,743 | ||||||
Tod’s SpA | 474 | 36,622 | ||||||
TSI Holdings Co. Ltd. | 4,800 | 32,037 | ||||||
Van de Velde NV(a) | 362 | 19,868 | ||||||
Wacoal Holdings Corp. | 3,000 | 38,001 | ||||||
Yondoshi Holdings, Inc. | 1,400 | 33,333 | ||||||
Yue Yuen Industrial Holdings Ltd. | 40,500 | 160,124 | ||||||
11,761,375 |
Shares | Value | |||||||
Thrifts & Mortgage Finance – 0.5% | ||||||||
Aareal Bank AG | 3,960 | $ | 159,100 | |||||
Deutsche Pfandbriefbank AG(c) | 76,296 | 1,021,915 | ||||||
Equitable Group, Inc.(a) | 7,495 | 200,024 | ||||||
First National Financial Corp.(a) | 10,576 | 177,981 | ||||||
Genworth MI Canada, Inc.(a) | 1,672 | 41,455 | ||||||
Genworth Mortgage Insurance Australia Ltd.(a) | 173,712 | 427,406 | ||||||
Home Capital Group, Inc.(a) | 42,552 | 250,214 | ||||||
OneSavings Bank plc | 79,530 | 450,975 | ||||||
Paragon Group of Cos. plc (The) | 199,122 | 1,204,088 | ||||||
3,933,158 | ||||||||
Tobacco – 0.8% | ||||||||
British American Tobacco plc | 47,718 | 3,219,488 | ||||||
Imperial Brands plc | 24,486 | 1,198,091 | ||||||
Japan Tobacco, Inc. | 28,400 | 944,204 | ||||||
Scandinavian Tobacco Group A/S, Class A(c) | 41,118 | 717,629 | ||||||
Swedish Match AB | 3,472 | 114,573 | ||||||
6,193,985 | ||||||||
Trading Companies & Distributors – 2.1% | ||||||||
AddTech AB, Class B | 4,329 | 77,978 | ||||||
Advan Co. Ltd. | 14,000 | 145,941 | ||||||
Ashtead Group plc | 12,936 | 272,963 | ||||||
B&B Tools AB, Class B | 2,219 | 50,871 | ||||||
BayWa AG | 605 | 22,011 | ||||||
Beijer Ref AB | 1,265 | 31,929 | ||||||
BEP International Holdings Ltd. | 760,000 | 38,110 | ||||||
Bossard Holding AG (Registered), Class A | 174 | 34,644 | ||||||
Brenntag AG | 3,966 | 235,114 | ||||||
Bunzl plc | 7,986 | 248,792 | ||||||
Cramo OYJ | 25,806 | 670,781 | ||||||
Digital Domain Holdings Ltd.* | 560,000 | 25,561 | ||||||
Diploma plc | 5,245 | 75,254 | ||||||
Finning International, Inc. | 3,355 | 63,699 | ||||||
Grafton Group plc | 153,573 | 1,481,197 | ||||||
Hanwa Co. Ltd. | 147,000 | 1,041,805 | ||||||
Howden Joinery Group plc | 13,944 | 83,525 | ||||||
IMCD Group NV | 2,440 | 131,391 | ||||||
Inaba Denki Sangyo Co. Ltd. | 1,000 | 36,333 | ||||||
Inabata & Co. Ltd. | 31,000 | 382,946 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 115 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Trading Companies & Distributors – (continued) | ||||||||
Indutrade AB | 2,198 | $ | 51,954 | |||||
ITOCHU Corp. | 67,200 | 950,096 | ||||||
Iwatani Corp. | 10,992 | 64,786 | ||||||
Japan Pulp & Paper Co. Ltd. | 81,000 | 281,215 | ||||||
Kanamoto Co. Ltd. | 27,523 | 745,667 | ||||||
Kanematsu Corp. | 298,000 | 606,854 | ||||||
Kloeckner & Co. SE* | 4,180 | 46,201 | ||||||
Kuroda Electric Co. Ltd. | 24,500 | 511,012 | ||||||
Marubeni Corp. | 75,600 | 465,523 | ||||||
MISUMI Group, Inc. | 8,100 | 153,396 | ||||||
Mitani Corp. | 11,200 | 349,152 | ||||||
Mitsubishi Corp. | 73,200 | 1,578,328 | ||||||
Mitsui & Co. Ltd. | 80,000 | 1,128,914 | ||||||
MonotaRO Co. Ltd.(a) | 1,400 | 45,528 | ||||||
Nagase & Co. Ltd. | 4,900 | 70,992 | ||||||
Nishio Rent All Co. Ltd. | 14,300 | 432,323 | ||||||
Noble Group Ltd.* (a) | 468,300 | 47,912 | ||||||
Ramirent OYJ* | 48,863 | 464,518 | ||||||
Reece Ltd. | 1,100 | 33,638 | ||||||
Rexel SA | 13,068 | 233,379 | ||||||
Richelieu Hardware Ltd. | 2,472 | 54,925 | ||||||
Russel Metals, Inc. | 5,264 | 100,791 | ||||||
Seven Group Holdings Ltd.(a) | 10,640 | 88,244 | ||||||
SIG plc(a) | 417,607 | 646,714 | ||||||
Sojitz Corp. | 57,300 | 145,473 | ||||||
Sumitomo Corp. | 55,100 | 735,771 | ||||||
Toromont Industries Ltd. | 1,650 | 58,600 | ||||||
Toyota Tsusho Corp. | 14,100 | 444,617 | ||||||
Travis Perkins plc | 9,570 | 199,461 | ||||||
Wolseley plc | 6,468 | 410,365 | ||||||
Yamazen Corp. | 68,200 | 646,086 | ||||||
16,943,280 | ||||||||
Transportation Infrastructure – 0.5% | ||||||||
Abertis Infraestructuras SA | 12,573 | 221,116 | ||||||
Aena SA(c) | 2,063 | 363,934 | ||||||
Aeroports de Paris | 715 | 95,339 | ||||||
Ansaldo STS SpA | 2,145 | 28,777 | ||||||
ASTM SpA | 25,542 | 393,568 | ||||||
Atlantia SpA | 10,893 | 276,146 | ||||||
Auckland International Airport Ltd. | 20,240 | 95,881 |
Shares | Value | |||||||
Transportation Infrastructure – (continued) | ||||||||
BBA Aviation plc | 32,469 | $ | 130,767 | |||||
Enav SpA* (c) | 8,877 | 36,346 | ||||||
Flughafen Wien AG | 468 | 16,973 | ||||||
Flughafen Zuerich AG (Registered) | 385 | 84,778 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 880 | 69,188 | ||||||
Groupe Eurotunnel SE (Registered) | 14,586 | 160,184 | ||||||
Hamburger Hafen und Logistik AG | 605 | 11,463 | ||||||
Hong Kong Aircraft Engineering Co. Ltd. | 2,800 | 18,721 | ||||||
Hutchison Port Holdings Trust(a) | 122,400 | 49,572 | ||||||
Japan Airport Terminal Co. Ltd. | 1,100 | 38,190 | ||||||
Kamigumi Co. Ltd. | 9,000 | 81,708 | ||||||
Macquarie Atlas Roads Group | 9,777 | 39,045 | ||||||
Mitsubishi Logistics Corp. | 4,000 | 51,673 | ||||||
Port of Tauranga Ltd. | 5,225 | 14,743 | ||||||
Qube Holdings Ltd. | 17,992 | 35,387 | ||||||
SATS Ltd. | 19,000 | 69,192 | ||||||
SAVE SpA | 752 | 17,827 | ||||||
SIA Engineering Co. Ltd. | 5,000 | 13,379 | ||||||
Societa Iniziative Autostradali e Servizi SpA | 4,167 | 41,973 | ||||||
Sumitomo Warehouse Co. Ltd. (The) | 108,000 | 654,956 | ||||||
Sydney Airport | 28,710 | 147,934 | ||||||
Transurban Group | 52,602 | 479,929 | ||||||
Westshore Terminals Investment Corp. | 5,020 | 87,638 | ||||||
3,826,327 | ||||||||
Water Utilities – 0.1% | ||||||||
Pennon Group plc | 9,426 | 104,510 | ||||||
Severn Trent plc | 6,141 | 184,719 | ||||||
SIIC Environment Holdings Ltd.* | 45,600 | 17,291 | ||||||
United Utilities Group plc | 19,207 | 241,906 | ||||||
548,426 | ||||||||
Wireless Telecommunication Services – 1.0% | ||||||||
Cellcom Israel Ltd.* | 5,408 | 53,486 | ||||||
Drillisch AG(a) | 979 | 52,457 | ||||||
Freenet AG | 3,107 | 97,475 |
See Accompanying Notes to the Financial Statements.
116 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Wireless Telecommunication Services – (continued) | ||||||||
KDDI Corp. | 48,100 | $ | 1,275,317 | |||||
M1 Ltd.(a) | 7,000 | 10,868 | ||||||
Millicom International Cellular SA, SDR | 1,492 | 81,889 | ||||||
NTT DOCOMO, Inc. | 35,300 | 851,228 | ||||||
Okinawa Cellular Telephone Co. | 9,500 | 309,792 | ||||||
Orange Belgium SA | 1,320 | 27,526 | ||||||
Partner Communications Co. Ltd.* | 6,748 | 32,978 | ||||||
Rogers Communications, Inc., Class B | 9,108 | 416,931 | ||||||
SmarTone Telecommunications Holdings Ltd. | 17,740 | 24,862 | ||||||
SoftBank Group Corp. | 39,941 | 3,024,867 | ||||||
StarHub Ltd.(a) | 20,200 | 40,322 | ||||||
Tele2 AB, Class B | 8,165 | 82,251 | ||||||
Vodafone Group plc | 681,516 | 1,755,046 | ||||||
8,137,295 | ||||||||
Total Common Stocks (Cost $740,800,074) | 796,781,246 | |||||||
CLOSED END FUNDS – 0.2% | ||||||||
Capital Markets – 0.2% | ||||||||
HBM Healthcare Investments AG Class A* | 4,620 | 545,795 | ||||||
Tetragon Financial Group Ltd. | 97,878 | 1,216,624 | ||||||
1,762,419 | ||||||||
Real Estate Management & Development – 0.0%(d) | ||||||||
UK Commercial Property Trust Ltd.(a) | 23,527 | 26,998 | ||||||
Total Closed End Funds (Cost $1,534,795) | 1,789,417 | |||||||
No. of Rights | ||||||||
RIGHTS – 0.0%(d) | ||||||||
Aerospace & Defense – 0.0%(d) | ||||||||
Cobham plc, expiring | 35,438 | 26,133 |
No. of Rights | Value | |||||||
Diversified Telecommunication Services – 0.0%(d) | ||||||||
TPG Telecom Ltd., expiring 5/12/2017, price 5.25 AUD* (b) | 644 | $ | 313 | |||||
Equity Real Estate Investment Trusts (REITs) – 0.0%(d) | ||||||||
Tritax Big Box REIT plc, expiring 5/10/2017, price 1.36 GBP* (b) | 8,690 | 450 | ||||||
Total Rights (Cost $30,420) | 26,896 | |||||||
Shares | ||||||||
INVESTMENT COMPANY – 0.0%(d) | ||||||||
OceanaGold Corp. | 1,000 | 3,255 | ||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(e) – 1.8% | ||||||||
CERTIFICATES OF DEPOSIT – 0.3% | ||||||||
Credit Suisse, New York |
| |||||||
1.11%, 8/16/2017 | $ | 400,000 | 400,368 | |||||
Landesbank Baden-Wurttemberg, London | ||||||||
1.08%, 5/18/2017 | 400,000 | 399,796 | ||||||
Swedbank, New York | ||||||||
0.89%, 5/2/2017 | 500,000 | 500,000 | ||||||
Toronto Dominion, New York | ||||||||
1.20%, 6/1/2017 | 500,000 | 500,024 | ||||||
Wells Fargo Bank (San Francisco) NA | ||||||||
1.41%, 7/27/2017 | 250,000 | 250,242 | ||||||
Total Certificates of Deposit (Cost $2,049,960) | 2,050,430 | |||||||
COMMERCIAL PAPER – 0.0%(d) | ||||||||
ING (US) Funding LLC | 400,000 | 399,519 | ||||||
MASTER DEMAND NOTE – 0.1% | ||||||||
Natixis Financial Products LLC 1.16%, 5/1/2017 | 500,000 | 500,000 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 117 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
REPURCHASE AGREEMENTS – 1.4% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $1,100,100, collateralized by various Common Stocks; total market value $1,210,000 | $ | 1,100,000 | $ | 1,100,000 | ||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $6,995,993, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $7,135,419 | 6,995,509 | 6,995,509 | ||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $1,200,130, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $1,258,986 | 1,200,000 | 1,200,000 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Mizuho Securities USA, Inc., 0.85%, dated 4/28/2017, due 5/1/2017, repurchase price $2,000,141, collateralized by various U.S. Government Agency Mortgage Securities, ranging from 3.00% – 3.50%, maturing 1/20/2047 – 3/20/2047; total market value $2,040,000 | $ | 2,000,000 | $ | 2,000,000 | ||||
Total Repurchase Agreements (Cost $11,295,509) | 11,295,509 | |||||||
Total Securities Lending Reinvestments (Cost $14,244,988) | 14,245,458 | |||||||
Total Investments – 100.4% (Cost $756,613,410) | 812,846,272 | |||||||
Liabilities Less Other Assets – (0.4%) |
| (3,261,743 | ) | |||||
NET ASSETS – 100.0% | $ | 809,584,529 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $56,722,985, collateralized in the form of cash with a value of $14,247,723 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $8,993,416 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from 5/18/2017 – 2/15/2047 and $37,583,690 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $60,824,829. |
(b) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $544,934, which represents approximately 0.07% of net assets of the Fund. |
(c) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(d) | Represents less than 0.05% of net assets. |
See Accompanying Notes to the Financial Statements.
118 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
(e) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $14,245,458. |
Percentages shown are based on Net Assets.
Abbreviations:
AUD – Australian Dollar
CDI – Clearing House Electronic Subregister System (CHESS) Depository Interest
CVA – Dutch Certification
DI – Depositary Interest
FDR – Fiduciary Depositary Receipt
GBP – British Pound
OYJ – Public Limited Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SCA – Limited partnership with share capital
SDR – Swedish Depositary Receipt
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 91,703,764 | ||
Aggregate gross unrealized depreciation | (39,350,605 | ) | ||
Net unrealized appreciation | $ | 52,353,159 | ||
Federal income tax cost of investments | $ | 760,493,113 |
Futures Contracts
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation (Depreciation) | |||||||||||||
EURO STOXX 50® Index Futures Contracts | 87 | 06/16/2017 | $ | 3,323,432 | $ | 124,540 | ||||||||||
FTSE 100® Index Futures Contracts | 19 | 06/16/2017 | 1,761,247 | (23,579 | ) | |||||||||||
Hang Seng Index Futures Contracts | 2 | 05/29/2017 | 315,794 | 6,355 | ||||||||||||
Nikkei 225 SGX Index Futures Contracts | 33 | 06/08/2017 | 2,839,800 | 4,336 | ||||||||||||
S&P Toronto Stock Exchange 60® Index Futures Contracts | 12 | 06/15/2017 | 1,609,244 | 1,805 | ||||||||||||
SPI 200® Index Futures Contracts | 9 | 06/15/2017 | 994,958 | 18,470 | ||||||||||||
$ | 131,927 |
Forward Foreign Currency Contracts
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2017:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
AUD | 158,862 | Goldman Sachs & Co. | USD | 120,000 | 06/21/2017 | $ | (1,302 | ) | ||||||||||||||||
AUD | 130,735 | Toronto-Dominion Bank (The) | USD | 100,000 | 06/21/2017 | (2,318 | ) | |||||||||||||||||
CAD | 200,460 | Toronto-Dominion Bank (The) | USD | 150,000 | 06/21/2017 | (3,277 | ) | |||||||||||||||||
CAD | 295,584 | Goldman Sachs & Co. | USD | 220,000 | 06/21/2017 | (3,652 | ) | |||||||||||||||||
CHF | 110,264 | Goldman Sachs & Co. | USD | 110,000 | 06/21/2017 | 1,125 | ||||||||||||||||||
CHF | 99,204 | Toronto-Dominion Bank (The) | USD | 100,000 | 06/21/2017 | (22 | ) | |||||||||||||||||
EUR | 463,270 | Toronto-Dominion Bank (The) | USD | 500,000 | 06/21/2017 | 5,790 | ||||||||||||||||||
EUR | 109,812 | Societe Generale | USD | 117,622 | 06/21/2017 | 2,269 | ||||||||||||||||||
EUR | 559,764 | Bank of New York | USD | 600,000 | 06/21/2017 | 11,141 | ||||||||||||||||||
GBP | 150,732 | Citibank NA | USD | 184,651 | 06/21/2017 | 10,647 | ||||||||||||||||||
GBP | 321,576 | Toronto-Dominion Bank (The) | USD | 400,000 | 06/21/2017 | 16,655 | ||||||||||||||||||
GBP | 228,483 | Morgan Stanley | USD | �� | 280,000 | 06/21/2017 | 16,037 | |||||||||||||||||
JPY | 79,975,567 | Citibank NA | USD | 700,000 | 06/21/2017 | 18,931 | ||||||||||||||||||
JPY | 45,340,709 | Morgan Stanley | USD | 396,956 | 06/21/2017 | 10,629 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 119 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
USD | 171,804 | Citibank NA | AUD | 228,522 | 06/21/2017 | $ | 1,058 | |||||||||||||||||
USD | 18,155 | Goldman Sachs & Co. | CAD | 24,408 | 06/21/2017 | 290 | ||||||||||||||||||
USD | 14,667 | Morgan Stanley | CHF | 14,699 | 06/21/2017 | (147 | ) | |||||||||||||||||
USD | 100,000 | Toronto-Dominion Bank (The) | CHF | 98,988 | 06/21/2017 | 240 | ||||||||||||||||||
USD | 100,000 | Toronto-Dominion Bank (The) | EUR | 92,672 | 06/21/2017 | (1,178 | ) | |||||||||||||||||
USD | 220,000 | Toronto-Dominion Bank (The) | GBP | 177,413 | 06/21/2017 | (9,867 | ) | |||||||||||||||||
USD | 1,400,000 | Toronto-Dominion Bank (The) | JPY | 154,952,700 | 06/21/2017 | 7,070 | ||||||||||||||||||
USD | 2,706 | Morgan Stanley | SGD | 3,828 | 06/21/2017 | (34 | ) | |||||||||||||||||
$ | 80,085 |
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
EUR – Euro
GBP – British Pound
JPY – Japanese Yen
SGD – Singapore Dollar
USD – US Dollar
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 5.9 | % | ||
Austria | 0.4 | |||
Belgium | 1.0 | |||
Canada | 8.1 | |||
Denmark | 1.3 | |||
Finland | 1.0 | |||
France | 7.4 | |||
Germany | 6.2 | |||
Hong Kong | 2.9 | |||
Ireland | 0.5 | |||
Israel | 1.1 | |||
Italy | 2.5 | |||
Japan | 27.6 | |||
Netherlands | 2.9 | |||
New Zealand | 0.3 | |||
Norway | 1.0 | |||
Portugal | 0.4 | |||
Singapore | 1.5 | |||
Spain | 2.9 | |||
Sweden | 2.5 | |||
Switzerland | 5.4 | |||
United Kingdom | 15.8 | |||
Other1 | 1.4 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
120 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.1% | ||||||||
Aerospace & Defense – 0.3% | ||||||||
Aselsan Elektronik Sanayi ve Ticaret A/S | 3,290 | $ | 18,081 | |||||
AviChina Industry & Technology Co. Ltd., Class H(a) | 60,000 | 40,038 | ||||||
Bharat Electronics Ltd. | 15,660 | 44,536 | ||||||
Embraer SA | 58,800 | 281,059 | ||||||
Hanwha Techwin Co. Ltd.* | 1,932 | 88,289 | ||||||
Korea Aerospace Industries Ltd. | 2,700 | 151,384 | ||||||
S&T Dynamics Co. Ltd.* | 22,932 | 180,772 | ||||||
United Aircraft Corp. PJSC* ^ | 25,155,036 | 314,255 | ||||||
1,118,414 | ||||||||
Air Freight & Logistics – 0.3% | ||||||||
Aramex PJSC | 18,833 | 27,073 | ||||||
Blue Dart Express Ltd. | 60 | 4,550 | ||||||
Hanjin Transportation Co. Ltd. | 866 | 23,098 | ||||||
Hyundai Glovis Co. Ltd. | 1,008 | 128,447 | ||||||
Kerry TJ Logistics Co. Ltd. | 14,000 | 19,303 | ||||||
Sinotrans Ltd., Class H | 2,604,000 | 1,171,834 | ||||||
1,374,305 | ||||||||
Airlines – 0.6% | ||||||||
Aegean Airlines SA | 35,952 | 309,284 | ||||||
Aeroflot PJSC* | 49,812 | 153,605 | ||||||
Air Arabia PJSC | 99,682 | 28,225 | ||||||
Air China Ltd., Class H | 168,000 | 148,828 | ||||||
AirAsia Bhd. | 164,700 | 127,101 | ||||||
Asiana Airlines, Inc.* | 4,720 | 18,687 | ||||||
Bangkok Airways PCL, NVDR | 3,600 | 2,113 | ||||||
Cebu Air, Inc. | 247,800 | 535,623 | ||||||
China Airlines Ltd. | 213,000 | 66,009 | ||||||
China Eastern Airlines Corp. Ltd., Class H | 110,000 | 57,705 | ||||||
China Southern Airlines Co. Ltd., Class H | 122,000 | 81,254 | ||||||
Controladora Vuela Cia de Aviacion SAB de CV, Class A* | 41,100 | 51,652 | ||||||
Eva Airways Corp. | 168,000 | 82,689 |
Shares | Value | |||||||
Airlines – (continued) | ||||||||
Garuda Indonesia Persero Tbk. PT* | 240,716 | $ | 6,646 | |||||
Grupo Aeromexico SAB de CV* | 23,179 | 45,460 | ||||||
Hanjin Kal Corp.* | 1,808 | 32,175 | ||||||
Jet Airways India Ltd.* | 31,120 | 251,117 | ||||||
Korean Air Lines Co. Ltd.* | 4,734 | 127,513 | ||||||
Latam Airlines Group SA* | 17,976 | 226,987 | ||||||
SpiceJet Ltd.* | 167,412 | 279,367 | ||||||
Thai Airways International PCL, NVDR* | 56,620 | 27,991 | ||||||
Turk Hava Yollari AO* | 48,744 | 83,120 | ||||||
2,743,151 | ||||||||
Auto Components – 2.1% | ||||||||
Actron Technology Corp. | 7,000 | 24,709 | ||||||
Apollo Tyres Ltd. | 16,353 | 62,026 | ||||||
Balkrishna Industries Ltd. | 1,380 | 32,673 | ||||||
Bharat Forge Ltd. | 2,829 | 50,342 | ||||||
Bosch Ltd. | 336 | 120,087 | ||||||
Ceat Ltd.* | 22,008 | 522,027 | ||||||
Chaowei Power Holdings Ltd. | 840,000 | 534,616 | ||||||
Cheng Shin Rubber Industry Co. Ltd. | 95,400 | 196,991 | ||||||
China First Capital Group Ltd.* | 80,000 | 27,772 | ||||||
Cub Elecparts, Inc. | 1,263 | 13,228 | ||||||
Depo Auto Parts Ind Co. Ltd. | 120,000 | 346,028 | ||||||
Dong Ah Tire & Rubber Co. Ltd. | 823 | 18,009 | ||||||
Exide Industries Ltd. | 15,469 | 55,270 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class H(b) | 35,600 | 125,875 | ||||||
Halla Holdings Corp. | 10,164 | 541,294 | ||||||
Hankook Tire Co. Ltd. | 6,562 | 339,662 | ||||||
Hanon Systems | 10,608 | 78,868 | ||||||
Hiroca Holdings Ltd. | 8,000 | 25,959 | ||||||
Hota Industrial Manufacturing Co. Ltd. | 4,826 | 21,274 | ||||||
Hu Lane Associate, Inc. | 8,000 | 39,110 | ||||||
Hyundai Mobis Co. Ltd. | 6,048 | 1,179,942 | ||||||
Hyundai Wia Corp. | 1,043 | 59,487 | ||||||
Iron Force Industrial Co. Ltd. | 3,060 | 16,532 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 121 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Kenda Rubber Industrial Co. Ltd. | 29,307 | $ | 47,208 | |||||
Korea Autoglass Corp. | 7,728 | 113,757 | ||||||
Kumho Tire Co., Inc.* | 6,046 | 42,772 | ||||||
Macauto Industrial Co. Ltd. | 5,000 | 29,250 | ||||||
Mahindra CIE Automotive Ltd.* | 6,379 | 24,265 | ||||||
Mahle-Metal Leve SA* | 6,900 | 44,414 | ||||||
Mando Corp. | 207 | 41,840 | ||||||
Minth Group Ltd. | 24,000 | 89,180 | ||||||
Motherson Sumi Systems Ltd.* | 21,102 | 131,621 | ||||||
MRF Ltd. | 36 | 38,003 | ||||||
Nan Kang Rubber Tire Co. Ltd. | 25,000 | 23,864 | ||||||
Nemak SAB de CV(b) | 24,800 | 26,005 | ||||||
Nexen Corp. | 23,120 | 167,625 | ||||||
Nexen Tire Corp. | 1,812 | 21,736 | ||||||
Nexteer Automotive Group Ltd. | 26,000 | 40,517 | ||||||
Rassini SAB de CV* | 3,402 | 15,918 | ||||||
S&T Motiv Co. Ltd. | 11,256 | 445,136 | ||||||
Sanok Rubber Co. SA | 2,092 | 33,521 | ||||||
Sebang Global Battery Co. Ltd. | 6,494 | 214,013 | ||||||
Seoyon E-Hwa Co. Ltd. | 15,120 | 182,041 | ||||||
SL Corp. | 16,946 | 269,551 | ||||||
Sri Trang Agro-Industry PCL, NVDR | 781,200 | 406,522 | ||||||
Sungwoo Hitech Co. Ltd. | 44,812 | 291,816 | ||||||
Tianneng Power International Ltd.(a) | 864,000 | 756,516 | ||||||
Tong Yang Industry Co. Ltd. | 16,400 | 27,831 | ||||||
Tube Investments of India Ltd. | 3,206 | 33,645 | ||||||
Tung Thih Electronic Co. Ltd. | 2,000 | 13,722 | ||||||
Tupy SA* | 118,500 | 569,754 | ||||||
TYC Brother Industrial Co. Ltd. | 252,000 | 259,759 | ||||||
Xingda International Holdings Ltd. | 1,092,000 | 438,061 | ||||||
9,271,644 | ||||||||
Automobiles – 1.8% | ||||||||
Astra International Tbk. PT | 890,400 | 597,875 | ||||||
BAIC Motor Corp. Ltd., Class H(b) | 84,000 | 80,894 | ||||||
Bajaj Auto Ltd. | 2,772 | 123,411 |
Shares | Value | |||||||
Automobiles – (continued) | ||||||||
Brilliance China Automotive Holdings Ltd. | 116,000 | $ | 194,488 | |||||
BYD Co. Ltd., Class H(a) | 22,000 | 129,694 | ||||||
China Motor Corp. | 36,000 | 32,753 | ||||||
Chongqing Changan Automobile Co. Ltd., Class B | 75,600 | 100,119 | ||||||
Dongfeng Motor Group Co. Ltd., Class H | 246,000 | 258,729 | ||||||
DRB-Hicom Bhd. | 846,000 | 280,636 | ||||||
Ford Otomotiv Sanayi A/S | 2,839 | 31,555 | ||||||
Geely Automobile Holdings Ltd. | 205,000 | 276,758 | ||||||
Great Wall Motor Co. Ltd., Class H(a) | 252,000 | 273,464 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H | 201,984 | 314,239 | ||||||
Hero MotoCorp Ltd. | 4,200 | 216,666 | ||||||
Hyundai Motor Co. | 13,104 | 1,658,297 | ||||||
Hyundai Motor Co. (2nd Preference) | 3,192 | 278,553 | ||||||
Hyundai Motor Co. (3rd Preference) | 116 | 8,869 | ||||||
Hyundai Motor Co. (Preference) | 1,764 | 143,086 | ||||||
Jiangling Motors Corp. Ltd., Class B | 77,747 | 164,939 | ||||||
Kia Motors Corp. | 23,520 | 720,337 | ||||||
Mahindra & Mahindra Ltd. | 10,433 | 216,599 | ||||||
Mahindra & Mahindra Ltd., GDR | 2,707 | 56,712 | ||||||
Maruti Suzuki India Ltd. | 5,460 | 553,796 | ||||||
Oriental Holdings Bhd. | 17,800 | 27,801 | ||||||
Sanyang Motor Co. Ltd. | 35,000 | 24,883 | ||||||
Ssangyong Motor Co.* | 2,570 | 17,029 | ||||||
Tata Motors Ltd. | 66,702 | 475,821 | ||||||
Tata Motors Ltd., ADR | 3,631 | 129,518 | ||||||
Tata Motors Ltd., Class A | 29,095 | 126,638 | ||||||
Tofas Turk Otomobil Fabrikasi A/S | 5,005 | 41,660 | ||||||
TVS Motor Co. Ltd. | 6,454 | 49,762 | ||||||
UMW Holdings Bhd.* | 34,800 | 49,703 | ||||||
Yadea Group Holdings Ltd.* (b) | 1,176,000 | 252,511 |
See Accompanying Notes to the Financial Statements.
122 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Automobiles – (continued) | ||||||||
Yulon Nissan Motor Co. Ltd. | 2,000 | $ | 15,777 | |||||
7,923,572 | ||||||||
Banks – 16.2% | ||||||||
Abu Dhabi Commercial Bank PJSC | 152,177 | 286,704 | ||||||
AFFIN Holdings Bhd. | 3,510 | 2,369 | ||||||
Agricultural Bank of China Ltd., Class H | 2,352,000 | 1,085,648 | ||||||
Ajman Bank PJSC* | 67,315 | 21,809 | ||||||
Akbank TAS | 160,644 | 429,891 | ||||||
Akbank TAS, ADR | 20,016 | 107,686 | ||||||
Al Khalij Commercial Bank PQSC | 12,482 | 50,150 | ||||||
Alior Bank SA* | 5,085 | 97,725 | ||||||
Allahabad Bank* | 146,852 | 187,988 | ||||||
Alliance Financial Group Bhd. | 75,600 | 71,925 | ||||||
Alpha Bank AE* | 112,476 | 238,837 | ||||||
AMMB Holdings Bhd. | 104,000 | 131,288 | ||||||
Andhra Bank | 183,129 | 196,138 | ||||||
Axis Bank Ltd. | 74,132 | 587,306 | ||||||
Banco Bradesco SA* | 58,800 | 599,250 | ||||||
Banco Bradesco SA (Preference)* | 237,560 | 2,478,977 | ||||||
Banco Davivienda SA (Preference) | 135,240 | 1,419,751 | ||||||
Banco de Bogota SA | 4,452 | 90,911 | ||||||
Banco de Chile | 1,033,889 | 124,816 | ||||||
Banco de Credito e Inversiones | 1,932 | 107,317 | ||||||
Banco do Brasil SA* | 93,900 | 962,249 | ||||||
Banco do Estado do Rio Grande do Sul SA (Preference), Class B* | 210,000 | 942,072 | ||||||
Banco Santander Brasil SA | 16,800 | 143,484 | ||||||
Banco Santander Chile | 3,235,301 | 191,943 | ||||||
Bancolombia SA | 25,536 | 233,833 | ||||||
Bancolombia SA (Preference) | 40,824 | 397,050 | ||||||
Bangkok Bank PCL, NVDR | 36,400 | 188,893 | ||||||
Bank Central Asia Tbk. PT | 512,400 | 682,354 | ||||||
Bank Danamon Indonesia Tbk. PT | 378,500 | 138,008 | ||||||
Bank Handlowy w Warszawie SA | 722 | 13,943 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Bank Mandiri Persero Tbk. PT | 403,200 | $ | 353,923 | |||||
Bank Millennium SA* | 20,424 | 36,415 | ||||||
Bank Negara Indonesia Persero Tbk. PT | 630,000 | 301,317 | ||||||
Bank of Ayudhya PCL, NVDR | 75,600 | 83,053 | ||||||
Bank of Baroda* | 39,816 | 116,081 | ||||||
Bank of China Ltd., Class H | 6,652,000 | 3,224,414 | ||||||
Bank of Chongqing Co. Ltd., Class H | 59,500 | 49,650 | ||||||
Bank of Communications Co. Ltd., Class H | 1,932,000 | 1,487,960 | ||||||
Bank of India* | 10,862 | 31,541 | ||||||
Bank of Jinzhou Co. Ltd., Class H | 168,000 | 194,838 | ||||||
Bank of Qingdao Co. Ltd., Class H(b) | 425,000 | 381,965 | ||||||
Bank of the Philippine Islands | 60,480 | 126,855 | ||||||
Bank of Tianjin Co. Ltd., Class H | 84,000 | 59,294 | ||||||
Bank of Zhengzhou Co. Ltd., Class H(b) | 840,000 | 551,896 | ||||||
Bank Pan Indonesia Tbk. PT* | 119,500 | 8,203 | ||||||
Bank Pekao SA | 6,552 | 237,268 | ||||||
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk. PT | 5,796,000 | 874,031 | ||||||
Bank Pembangunan Daerah Jawa Timur Tbk. PT | 8,904,000 | 457,592 | ||||||
Bank Permata Tbk. PT* | 2,763,600 | 144,099 | ||||||
Bank Rakyat Indonesia Persero Tbk. PT | 470,400 | 455,260 | ||||||
Bank Tabungan Negara Persero Tbk. PT | 605,800 | 104,534 | ||||||
Bank Zachodni WBK SA* | 1,344 | 123,347 | ||||||
Banregio Grupo Financiero SAB de CV | 4,800 | 27,455 | ||||||
Barclays Africa Group Ltd. | 26,124 | 286,932 | ||||||
BDO Unibank, Inc. | 73,306 | 175,911 | ||||||
BIMB Holdings Bhd. | 22,280 | 22,480 | ||||||
BNK Financial Group, Inc. | 19,685 | 165,382 | ||||||
BOC Hong Kong Holdings Ltd. | 149,500 | 615,104 | ||||||
Canara Bank* | 6,769 | 37,622 | ||||||
Capitec Bank Holdings Ltd.(a) | 2,184 | 124,434 | ||||||
Central Bank of India* | 15,111 | 24,887 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 123 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Chang Hwa Commercial Bank Ltd. | 263,160 | $ | 152,640 | |||||
China CITIC Bank Corp. Ltd., Class H | 1,092,000 | 692,192 | ||||||
China Construction Bank Corp., Class H | 8,148,000 | 6,621,026 | ||||||
China Development Financial Holding Corp. | 672,000 | 185,312 | ||||||
China Everbright Bank Co. Ltd., Class H(a) | 342,000 | 160,500 | ||||||
China Merchants Bank Co. Ltd., Class H | 336,000 | 872,666 | ||||||
China Minsheng Banking Corp. Ltd., Class H | 546,000 | 537,748 | ||||||
China Zheshang Bank Co. Ltd., Class H | 136,000 | 73,617 | ||||||
Chong Hing Bank Ltd. | 21,000 | 45,469 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H | 271,000 | 186,415 | ||||||
CIMB Group Holdings Bhd. | 226,931 | 300,065 | ||||||
City Union Bank Ltd. | 4,127 | 10,572 | ||||||
Commercial Bank QSC (The)* | 19,442 | 159,912 | ||||||
Commercial International Bank Egypt SAE | 53,340 | 218,384 | ||||||
Credicorp Ltd. | 2,624 | 403,204 | ||||||
CTBC Financial Holding Co. Ltd.* | 1,680,000 | 1,049,617 | ||||||
DGB Financial Group, Inc. | 11,676 | 119,541 | ||||||
Doha Bank QSC | 11,172 | 96,033 | ||||||
Dubai Islamic Bank PJSC | 84,013 | 134,265 | ||||||
E.Sun Financial Holding Co. Ltd. | 368,977 | 223,189 | ||||||
East West Banking Corp.* | 386,800 | 166,053 | ||||||
EnTie Commercial Bank Co. Ltd. | 33,000 | 14,547 | ||||||
Eurobank Ergasias SA* | 162,036 | 130,219 | ||||||
Far Eastern International Bank | 176,269 | 55,210 | ||||||
Federal Bank Ltd. | 20,562 | 34,393 | ||||||
First Financial Holding Co. Ltd. | 435,991 | 265,892 | ||||||
Grupo Aval Acciones y Valores SA (Preference) | 202,734 | 79,983 | ||||||
Grupo Elektra SAB de CV(a) | 5,040 | 165,299 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Grupo Financiero Banorte SAB de CV, Class O | 100,800 | $ | 578,686 | |||||
Grupo Financiero Inbursa SAB de CV, Class O | 58,800 | 98,497 | ||||||
Grupo Financiero Santander Mexico SAB de CV, Class B | 84,000 | 151,377 | ||||||
Grupo Security SA | 44,946 | 15,908 | ||||||
Hana Financial Group, Inc. | 25,200 | 868,125 | ||||||
Harbin Bank Co. Ltd., Class H(b) | 3,780,000 | 1,117,833 | ||||||
Hong Leong Bank Bhd. | 13,572 | 43,145 | ||||||
Hong Leong Financial Group Bhd. | 15,043 | 58,495 | ||||||
Hua Nan Financial Holdings Co. Ltd. | 351,535 | 196,909 | ||||||
Huishang Bank Corp. Ltd., Class H | 168,000 | 79,490 | ||||||
ICICI Bank Ltd. | 115,584 | 500,391 | ||||||
IDBI Bank Ltd.* | 23,563 | 28,607 | ||||||
IDFC Bank Ltd. | 45,927 | 46,941 | ||||||
Indian Bank | 6,072 | 30,119 | ||||||
Indian Overseas Bank* | 535,920 | 241,593 | ||||||
IndusInd Bank Ltd. | 14,364 | 322,637 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 6,804,000 | 4,444,114 | ||||||
Industrial Bank of Korea | 21,369 | 234,742 | ||||||
ING Bank Slaski SA* | 2,100 | 96,906 | ||||||
Intercorp Financial Services, Inc. | 3,594 | 115,475 | ||||||
Itau CorpBanca | 14,835,492 | 135,361 | ||||||
Itau Unibanco Holding SA (Preference) | 285,600 | 3,503,484 | ||||||
Itausa – Investimentos Itau SA* | 205 | 591 | ||||||
Itausa – Investimentos Itau SA – P-RCT* | 5,261 | 16,200 | ||||||
Itausa – Investimentos Itau SA (Preference) | 336,740 | 1,035,864 | ||||||
Jammu & Kashmir Bank Ltd. (The) | 293,283 | 369,738 | ||||||
JB Financial Group Co. Ltd. | 4,731 | 25,154 | ||||||
Karur Vysya Bank Ltd. (The) | 286,020 | 531,313 | ||||||
Kasikornbank PCL, NVDR | 51,000 | 272,767 | ||||||
KB Financial Group, Inc. | 36,540 | 1,608,800 | ||||||
Kiatnakin Bank PCL, NVDR | 29,400 | 58,010 |
See Accompanying Notes to the Financial Statements.
124 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
King’s Town Bank Co. Ltd. | 55,000 | $ | 52,865 | |||||
Komercni banka A/S | 3,780 | 146,474 | ||||||
Kotak Mahindra Bank Ltd. | 27,300 | 382,764 | ||||||
Krung Thai Bank PCL, NVDR | 220,900 | 126,448 | ||||||
Kwangju Bank | 25,651 | 266,000 | ||||||
LH Financial Group PCL, NVDR | 290,449 | 14,779 | ||||||
Malayan Banking Bhd. | 196,397 | 433,422 | ||||||
Masraf Al Rayan QSC | 14,028 | 161,226 | ||||||
mBank SA* | 361 | 40,274 | ||||||
Mega Financial Holding Co. Ltd. | 924,000 | 742,667 | ||||||
Metropolitan Bank & Trust Co. | 62,232 | 105,246 | ||||||
Moneta Money Bank A/S(b) | 5,793 | 18,710 | ||||||
National Bank of Abu Dhabi PJSC | 236,964 | 709,666 | ||||||
National Bank of Greece SA* | 181,229 | 56,442 | ||||||
Nedbank Group Ltd. | 15,624 | 263,187 | ||||||
OTP Bank plc | 8,652 | 243,469 | ||||||
Philippine National Bank | 22,283 | 29,077 | ||||||
Piraeus Bank SA* | 203,868 | 43,290 | ||||||
Postal Savings Bank of China Co. Ltd., Class H* (b) | 252,000 | 163,949 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA | 36,540 | 332,242 | ||||||
Public Bank Bhd. | 92,400 | 424,857 | ||||||
Punjab National Bank* | 36,036 | 94,585 | ||||||
Qatar International Islamic Bank QSC | 1,346 | 23,214 | ||||||
Qatar Islamic Bank SAQ | 3,543 | 98,273 | ||||||
Qatar National Bank QPSC | 9,695 | 382,869 | ||||||
RBL Bank Ltd.* (b) | 3,086 | 27,077 | ||||||
RHB Bank Bhd. | 135,521 | 171,704 | ||||||
Rizal Commercial Banking Corp. | 609,680 | 664,407 | ||||||
Sberbank of Russia PJSC | 945,504 | 2,740,632 | ||||||
Sberbank of Russia PJSC (Preference) | 95,706 | 211,284 | ||||||
Security Bank Corp. | 6,870 | 29,314 | ||||||
Shengjing Bank Co. Ltd., Class H(b) | 33,500 | 28,859 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Shinhan Financial Group Co. Ltd. | 41,412 | $ | 1,730,504 | |||||
Siam Commercial Bank PCL (The), NVDR | 142,800 | 644,024 | ||||||
SinoPac Financial Holdings Co. Ltd. | 871,000 | 266,170 | ||||||
Sociedad Matriz del Banco de Chile SA, Class B | 133,757 | 47,529 | ||||||
Standard Bank Group Ltd.(a) | 113,012 | 1,252,748 | ||||||
State Bank of India | 62,412 | 281,111 | ||||||
Syndicate Bank* | 226,128 | 290,877 | ||||||
Taichung Commercial Bank Co. Ltd. | 127,627 | 41,455 | ||||||
Taishin Financial Holding Co. Ltd. | 796,378 | 328,624 | ||||||
Taiwan Business Bank | 269,204 | 74,415 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 336,000 | 170,946 | ||||||
Thanachart Capital PCL, NVDR | 39,400 | 53,820 | ||||||
Tisco Financial Group PCL, NVDR | 28,820 | 63,531 | ||||||
TMB Bank PCL, NVDR | 1,373,200 | 90,514 | ||||||
Turkiye Garanti Bankasi A/S | 162,914 | 439,633 | ||||||
Turkiye Garanti Bankasi A/S, ADR | 30,454 | 83,139 | ||||||
Turkiye Halk Bankasi A/S* | 49,289 | 163,384 | ||||||
Turkiye Is Bankasi, Class C | 154,476 | 304,714 | ||||||
Turkiye Sinai Kalkinma Bankasi A/S | 54,930 | 23,340 | ||||||
Turkiye Vakiflar Bankasi TAO, Class D | 111,066 | 189,707 | ||||||
UCO Bank* | 332,425 | 214,193 | ||||||
Union Bank of India | 5,963 | 15,888 | ||||||
Union Bank of Taiwan | 145,356 | 43,890 | ||||||
Union National Bank PJSC | 77,993 | 106,171 | ||||||
Vijaya Bank* | 242,760 | 309,063 | ||||||
VTB Bank PJSC | 213,004,764 | 249,320 | ||||||
Woori Bank | 29,904 | 392,886 | ||||||
Yapi ve Kredi Bankasi A/S* | 47,405 | 57,493 | ||||||
Yes Bank Ltd. | 14,448 | 366,141 | ||||||
70,599,795 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 125 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Beverages – 0.7% | ||||||||
Ambev SA (Preference) | 184,800 | $ | 1,054,911 | |||||
Anadolu Efes Biracilik ve Malt Sanayii A/S | 4,540 | 25,576 | ||||||
Arca Continental SAB de CV* | 17,800 | 130,252 | ||||||
Capevin Holdings Ltd.(a) | 69,631 | 43,390 | ||||||
Carabao Group PCL, NVDR | 13,100 | 24,901 | ||||||
China Resources Beer Holdings Co. Ltd.* | 53,107 | 127,825 | ||||||
Cia Cervecerias Unidas SA | 8,484 | 109,315 | ||||||
Coca-Cola Embonor SA (Preference), Class B | 4,368 | 10,966 | ||||||
Coca-Cola Femsa SAB de CV, Series L | 25,200 | 181,679 | ||||||
Coca-Cola Icecek A/S | 912 | 9,269 | ||||||
Distell Group Ltd. | 563 | 5,648 | ||||||
Embotelladora Andina SA (Preference), Class B | 4,525 | 18,844 | ||||||
Emperador, Inc. | 146,700 | 18,761 | ||||||
Fomento Economico Mexicano SAB de CV | 92,400 | 824,834 | ||||||
Fraser & Neave Holdings Bhd. | 2,700 | 15,475 | ||||||
Hey Song Corp. | 23,500 | 25,859 | ||||||
Hite Jinro Co. Ltd. | 1,102 | 20,241 | ||||||
Lotte Chilsung Beverage Co. Ltd. | 24 | 35,370 | ||||||
Muhak Co. Ltd. | 761 | 15,382 | ||||||
Organizacion Cultiba SAB de CV | 4,800 | 4,621 | ||||||
Tibet Water Resources Ltd. | 131,000 | 54,741 | ||||||
Tsingtao Brewery Co. Ltd., Class H | 10,000 | 45,001 | ||||||
United Breweries Ltd. | 2,435 | 29,108 | ||||||
United Spirits Ltd.* | 2,772 | 80,835 | ||||||
Vina Concha y Toro SA | 960 | 1,554 | ||||||
Yantai Changyu Pioneer Wine Co. Ltd., Class B | 9,600 | 23,600 | ||||||
2,937,958 | ||||||||
Biotechnology – 0.2% | ||||||||
3SBio, Inc.* (a) (b) | 38,980 | 52,023 | ||||||
Amicogen, Inc.* | 459 | 18,676 | ||||||
ATGen Co. Ltd.* | 744 | 21,577 |
Shares | Value | |||||||
Biotechnology – (continued) | ||||||||
Biocon Ltd.* | 1,561 | $ | 26,782 | |||||
Cell Biotech Co. Ltd. | 621 | 20,165 | ||||||
Celltrion, Inc.* | 4,253 | 334,888 | ||||||
China Biologic Products, Inc.* (a) | 600 | 70,800 | ||||||
China Regenerative Medicine International Ltd.* | 345,000 | 12,642 | ||||||
CrystalGenomics, Inc.* | 1,488 | 19,615 | ||||||
Genexine Co. Ltd.* | 728 | 26,423 | ||||||
Green Cross Corp. | 214 | 30,843 | ||||||
Green Cross Holdings Corp. | 768 | 22,003 | ||||||
Hugel, Inc.* | 44 | 18,019 | ||||||
iNtRON Biotechnology, Inc.* | 460 | 9,702 | ||||||
Medigen Biotechnology Corp.* | 12,099 | 22,738 | ||||||
Medy-Tox, Inc. | 138 | 60,662 | ||||||
Naturalendo Tech Co. Ltd.* | 1,586 | 19,025 | ||||||
OBI Pharma, Inc.* | 4,000 | 37,652 | ||||||
PharmaEngine, Inc. | 2,477 | 15,311 | ||||||
PharmaEssentia Corp.* | 6,000 | 29,929 | ||||||
Seegene, Inc.* | 655 | 20,521 | ||||||
Taigen Biopharmaceuticals Holdings Ltd.* | 29,665 | 22,516 | ||||||
TaiMed Biologics, Inc.* | 5,000 | 30,079 | ||||||
Taiwan Liposome Co. Ltd.* | 4,340 | 16,758 | ||||||
ViroMed Co. Ltd.* | 421 | 34,112 | ||||||
993,461 | ||||||||
Building Products – 0.5% | ||||||||
Astral Polytechnik Ltd. | 1,823 | 15,660 | ||||||
Byucksan Corp. | 3,380 | 11,391 | ||||||
China Lesso Group Holdings Ltd. | 71,000 | 56,599 | ||||||
Chosun Refractories Co. Ltd. | 1,536 | 118,922 | ||||||
Dynasty Ceramic PCL, NVDR | 172,800 | 20,282 | ||||||
Elementia SAB de CV* (b) | 39,375 | 53,322 | ||||||
IS Dongseo Co. Ltd. | 630 | 23,779 | ||||||
Kajaria Ceramics Ltd. | 1,920 | 19,810 | ||||||
KCC Corp. | 362 | 108,323 | ||||||
Kyung Dong Navien Co. Ltd. | 239 | 7,635 | ||||||
LG Hausys Ltd. | 146 | 12,831 | ||||||
Ras Al Khaimah Ceramics | 496,386 | 321,644 | ||||||
Sintex Industries Ltd. | 428,879 | 754,355 |
See Accompanying Notes to the Financial Statements.
126 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Building Products – (continued) | ||||||||
Taiwan FU Hsing Industrial Co. Ltd. | 168,000 | $ | 235,816 | |||||
Taiwan Glass Industry Corp.* | 84,568 | 43,166 | ||||||
Trakya Cam Sanayii A/S* | 364,224 | 352,566 | ||||||
Xxentria Technology Materials Corp. | 12,653 | 29,692 | ||||||
2,185,793 | ||||||||
Capital Markets – 2.8% | ||||||||
Administradora de Fondos de Pensiones Habitat SA | 11,350 | 14,139 | ||||||
BM&FBovespa SA – Bolsa de Valores Mercadorias e Futuros* | 84,439 | 499,697 | ||||||
Bolsa Mexicana de Valores SAB de CV | 6,900 | 11,907 | ||||||
Brait SE* | 12,786 | 81,509 | ||||||
Bursa Malaysia Bhd. | 3,200 | 7,563 | ||||||
Capital Securities Corp. | 77,000 | 25,496 | ||||||
Central China Securities Co. Ltd., Class H(a) | 1,428,000 | 758,290 | ||||||
China Bills Finance Corp. | 71,000 | 34,828 | ||||||
China Cinda Asset Management Co. Ltd., Class H | 840,000 | 319,689 | ||||||
China Everbright Ltd. | 72,000 | 164,782 | ||||||
China Galaxy Securities Co. Ltd., Class H | 275,500 | 251,499 | ||||||
China Huarong Asset Management Co. Ltd., Class H(b) | 908,000 | 382,928 | ||||||
China International Capital Corp. Ltd., Class H* (b) | 24,800 | 36,670 | ||||||
CITIC Securities Co. Ltd., Class H | 210,000 | 440,653 | ||||||
Coronation Fund Managers Ltd. | 19,019 | 90,080 | ||||||
Daishin Securities Co. Ltd. | 3,258 | 35,360 | ||||||
Daishin Securities Co. Ltd. (Preference) | 1,500 | 11,007 | ||||||
Daou Data Corp. | 1,207 | 12,410 | ||||||
Dubai Financial Market PJSC* | 67,052 | 20,994 | ||||||
Dubai Investments PJSC | 106,319 | 61,366 |
Shares | Value | |||||||
Capital Markets – (continued) | ||||||||
Edelweiss Financial Services Ltd. | 9,654 | $ | 25,159 | |||||
Egypt Kuwait Holding Co. SAE | 1,011,612 | 647,432 | ||||||
Egyptian Financial Group-Hermes Holding Co.* | 21,531 | 29,094 | ||||||
Everbright Securities Co. Ltd., Class H* (b) | 843,600 | 1,249,529 | ||||||
FDG Kinetic Ltd.* | 58,000 | 8,203 | ||||||
GF Securities Co. Ltd., Class H | 134,400 | 278,216 | ||||||
Guotai Junan International Holdings Ltd. | 142,800 | 44,800 | ||||||
Haitong Securities Co. Ltd., Class H | 268,800 | 443,763 | ||||||
Hellenic Exchanges – Athens Stock Exchange SA | 6,448 | 34,125 | ||||||
Huarong International Financial Holdings Ltd.* | 66,650 | 20,910 | ||||||
Huatai Securities Co. Ltd., Class H(b) | 134,400 | 260,590 | ||||||
IIFL Holdings Ltd. | 6,624 | 49,399 | ||||||
Investec Ltd.(a) | 24,815 | 185,689 | ||||||
Jih Sun Financial Holdings Co. Ltd. | 8,813 | 2,083 | ||||||
JSE Ltd.(a) | 593 | 6,309 | ||||||
KIWOOM Securities Co. Ltd. | 275 | 19,116 | ||||||
Korea Investment Holdings Co. Ltd. | 3,696 | 166,627 | ||||||
Kresna Graha Investama PT Tbk.* | 1,150,500 | 36,770 | ||||||
Kyobo Securities Co. Ltd. | 21,433 | 180,068 | ||||||
Macquarie Korea Infrastructure Fund | 13,860 | 105,116 | ||||||
Masterlink Securities Corp. | 1,120,210 | 313,366 | ||||||
Meritz Securities Co. Ltd. | 22,194 | 80,553 | ||||||
Mirae Asset Daewoo Co. Ltd. | 35,714 | 279,962 | ||||||
Moscow Exchange MICEX-RTS PJSC | 65,193 | 131,603 | ||||||
NH Investment & Securities Co. Ltd. | 8,234 | 95,517 | ||||||
Norte Grande SA | 39,468,492 | 244,812 | ||||||
Orient Securities Co. Ltd., Class H* (b) | 1,008,000 | 982,397 | ||||||
OSK Holdings Bhd. | 798,000 | 288,611 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 127 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Pioneers Holding for Financial Investments SAE* | 33,480 | $ | 16,842 | |||||
President Securities Corp. | 875,753 | 390,404 | ||||||
PSG Konsult Ltd. | 39,290 | 23,779 | ||||||
Religare Enterprises Ltd.* | 3,905 | 12,241 | ||||||
Samsung Securities Co. Ltd. | 2,344 | 71,274 | ||||||
Shinyoung Securities Co. Ltd.* | 850 | 37,275 | ||||||
SK Securities Co. Ltd.* | 319,561 | 337,001 | ||||||
Sociedad de Inversiones Oro Blanco SA | 38,057,376 | 259,688 | ||||||
Warsaw Stock Exchange | 2,305 | 26,963 | ||||||
Waterland Financial Holdings Co. Ltd. | 60,952 | 18,687 | ||||||
Yuanta Financial Holding Co. Ltd. | 1,055,929 | 451,476 | ||||||
Yuanta Securities Korea Co. Ltd.* | 110,292 | 328,579 | ||||||
Zeder Investments Ltd.* (a) | 1,180,513 | 632,429 | ||||||
12,077,324 | ||||||||
Chemicals – 3.9% | ||||||||
AECI Ltd. | 134,016 | 1,161,847 | ||||||
Aekyung Petrochemical Co. Ltd. | 18,312 | 203,574 | ||||||
AK Holdings, Inc. | 208 | 11,790 | ||||||
Akzo Nobel India Ltd. | 2,170 | 66,227 | ||||||
Alpek SAB de CV | 20,000 | 23,786 | ||||||
Asia Polymer Corp. | 44,982 | 27,656 | ||||||
Asian Paints Ltd. | 12,096 | 210,679 | ||||||
Barito Pacific Tbk. PT* | 106,700 | 25,216 | ||||||
BASF India Ltd. | 836 | 17,059 | ||||||
Bayer CropScience Ltd. | 562 | 39,691 | ||||||
Berger Paints India Ltd. | 14,523 | 58,979 | ||||||
Bloomage BioTechnology Corp. Ltd. | 5,000 | 8,486 | ||||||
Braskem SA (Preference), Class A | 16,800 | 179,145 | ||||||
Castrol India Ltd. | 2,653 | 18,063 | ||||||
China Lumena New Materials Corp.* (c) | 888,000 | — | ||||||
China Man-Made Fiber Corp. | 1,293,100 | 339,444 | ||||||
China Petrochemical Development Corp.* | 105,700 | 39,938 |
Shares | Value | |||||||
Chemicals – (continued) | ||||||||
China Steel Chemical Corp. | 5,000 | $ | 19,804 | |||||
China Synthetic Rubber Corp. | 29,430 | 29,800 | ||||||
Ciech SA | 384 | 7,679 | ||||||
Coromandel International Ltd. | 1,898 | 10,300 | ||||||
D&L Industries, Inc. | 85,000 | 21,775 | ||||||
DCM Shriram Ltd. | 46,368 | 255,662 | ||||||
Dongjin Semichem Co. Ltd. | 35,868 | 326,245 | ||||||
Dongyue Group Ltd.* (c) | 944,000 | 166,284 | ||||||
Eastern Polymer Group PCL, NVDR | 52,200 | 20,373 | ||||||
ENF Technology Co. Ltd. | 9,744 | 170,835 | ||||||
Eternal Materials Co. Ltd. | 52,248 | 55,935 | ||||||
Everlight Chemical Industrial Corp. | 30,387 | 19,740 | ||||||
Foosung Co. Ltd.* | 4,960 | 31,558 | ||||||
Formosa Chemicals & Fibre Corp. | 141,000 | 433,688 | ||||||
Formosa Plastics Corp. | 200,000 | 601,240 | ||||||
Formosan Union Chemical | 336,000 | 225,515 | ||||||
Fufeng Group Ltd.(a) | 1,512,000 | 1,028,406 | ||||||
Godrej Industries Ltd.* | 3,377 | 28,051 | ||||||
Grand Pacific Petrochemical | 863,000 | 564,922 | ||||||
Green Seal Holding Ltd. | 2,000 | 9,778 | ||||||
Grupa Azoty SA | 1,225 | 21,595 | ||||||
Gubre Fabrikalari TAS | 85,958 | 118,037 | ||||||
Gujarat Fluorochemicals Ltd.* | 1,704 | 20,519 | ||||||
Hansol Chemical Co. Ltd. | 528 | 37,771 | ||||||
Hanwha Chemical Corp. | 8,736 | 193,084 | ||||||
Ho Tung Chemical Corp.* | 1,008,000 | 301,354 | ||||||
HS Industries Co. Ltd. | 754 | 6,726 | ||||||
Huabao International Holdings Ltd.* (a) | 2,268,000 | 1,242,252 | ||||||
Huchems Fine Chemical Corp. | 1,440 | 29,359 | ||||||
Hyosung Corp. | 2,101 | 265,879 | ||||||
Indorama Ventures PCL, NVDR | 81,500 | 86,589 | ||||||
Kansai Nerolac Paints Ltd. | 3,639 | 22,234 | ||||||
Kolon Industries, Inc. | 1,512 | 90,887 | ||||||
Korea Petrochemical Ind Co. Ltd. | 368 | 76,485 | ||||||
KPX Chemical Co. Ltd. | 2,688 | 144,569 | ||||||
Kukdo Chemical Co. Ltd. | 3,528 | 148,822 | ||||||
Kumho Petrochemical Co. Ltd. | 1,596 | 106,737 | ||||||
LCY Chemical Corp. | 35,000 | 50,346 |
See Accompanying Notes to the Financial Statements.
128 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
LG Chem Ltd. | 1,971 | $ | 474,606 | |||||
LG Chem Ltd. (Preference) | 179 | 28,630 | ||||||
Lotte Chemical Corp. | 1,344 | 403,944 | ||||||
LOTTE Fine Chemical Co. Ltd. | 240 | 8,120 | ||||||
Mexichem SAB de CV | 42,000 | 114,086 | ||||||
Namhae Chemical Corp. | 23,856 | 192,458 | ||||||
Nan Ya Plastics Corp. | 216,000 | 520,473 | ||||||
Nantex Industry Co. Ltd. | 18,296 | 14,160 | ||||||
OCI Co. Ltd. | 530 | 36,749 | ||||||
Omnia Holdings Ltd. | 1,681 | 19,999 | ||||||
Oriental Union Chemical Corp.* | 12,000 | 8,949 | ||||||
Petkim Petrokimya Holding A/S | 26,544 | 36,674 | ||||||
Petronas Chemicals Group Bhd. | 84,000 | 141,258 | ||||||
PhosAgro PJSC | 2,940 | 124,578 | ||||||
PI Industries Ltd. | 5,081 | 68,723 | ||||||
Pidilite Industries Ltd. | 3,715 | 41,568 | ||||||
PTT Global Chemical PCL, NVDR | 136,800 | 296,618 | ||||||
Rallis India Ltd. | 3,030 | 11,389 | ||||||
San Fang Chemical Industry Co. Ltd. | 27,232 | 33,712 | ||||||
Sasol Ltd. | 44,188 | 1,353,662 | ||||||
Shinkong Synthetic Fibers Corp. | 1,764,000 | 529,709 | ||||||
Sidi Kerir Petrochemicals Co. | 5,418 | 5,511 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H | 336,000 | 187,925 | ||||||
SK Chemicals Co. Ltd. | 1,177 | 65,165 | ||||||
SK Materials Co. Ltd. | 504 | 78,131 | ||||||
SKC Co. Ltd. | 952 | 23,969 | ||||||
Sociedad Quimica y Minera de Chile SA (Preference), Class B | 4,536 | 160,745 | ||||||
Soda Sanayii A/S* | 12,996 | 23,441 | ||||||
Solar Industries India Ltd. | 1,870 | 23,302 | ||||||
Songwon Industrial Co. Ltd. | 19,236 | 304,287 | ||||||
Soulbrain Co. Ltd. | 270 | 13,050 | ||||||
Synthos SA | 4,438 | 6,163 | ||||||
Taekwang Industrial Co. Ltd. | 18 | 14,094 | ||||||
Taiwan Fertilizer Co. Ltd. | 9,000 | 12,171 |
Shares | Value | |||||||
Chemicals – (continued) | ||||||||
TSRC Corp. | 28,900 | $ | 33,095 | |||||
Unid Co. Ltd. | 7,453 | 314,062 | ||||||
Unipetrol A/S | 5,796 | 65,614 | ||||||
UPC Technology Corp. | 48,000 | 20,603 | ||||||
UPL Ltd. | 17,528 | 219,652 | ||||||
USI Corp. | 881,000 | 442,383 | ||||||
Yingde Gases Group Co. Ltd.(a) | 1,344,000 | 1,029,918 | ||||||
Yung Chi Paint & Varnish Manufacturing Co. Ltd. | 15,000 | 40,768 | ||||||
16,966,529 | ||||||||
Commercial Services & Supplies – 0.1% | ||||||||
3M India Ltd.* | 45 | 8,044 | ||||||
Blue Label Telecoms Ltd. | 33,418 | 42,298 | ||||||
China Everbright International Ltd. | 102,000 | 137,966 | ||||||
KEPCO Plant Service & Engineering Co. Ltd. | 1,463 | 73,799 | ||||||
S-1 Corp. | 1,116 | 95,722 | ||||||
Sunny Friend Environmental Technology Co. Ltd. | 3,000 | 14,517 | ||||||
Taiwan Secom Co. Ltd. | 11,165 | 32,602 | ||||||
Taiwan Shin Kong Security Co. Ltd. | 24,240 | 32,057 | ||||||
437,005 | ||||||||
Communications Equipment – 0.6% | ||||||||
Accton Technology Corp. | 14,000 | 31,785 | ||||||
Advanced Ceramic X Corp. | 4,000 | 42,093 | ||||||
Alpha Networks, Inc. | 336,000 | 273,402 | ||||||
Arcadyan Technology Corp. | 168,000 | 282,868 | ||||||
BYD Electronic International Co. Ltd. | 43,000 | 65,681 | ||||||
China All Access Holdings Ltd. | 96,000 | 27,279 | ||||||
Humax Co. Ltd. | 16,968 | 177,449 | ||||||
Sercomm Corp. | 10,000 | 25,223 | ||||||
Wistron NeWeb Corp. | 8,258 | 23,703 | ||||||
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., Class H(a) (b) | 8,500 | 17,770 | ||||||
Zinwell Corp. | 13,000 | 13,896 | ||||||
ZTE Corp., Class H | 924,000 | 1,782,052 | ||||||
2,763,201 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 129 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – 1.7% | ||||||||
Adhi Karya Persero Tbk. PT | 167,400 | $ | 28,383 | |||||
Arabtec Holding PJSC* | 93,066 | 22,804 | ||||||
BES Engineering Corp. | 1,619,000 | 335,380 | ||||||
Budimex SA | 288 | 20,406 | ||||||
CH Karnchang PCL, NVDR | 26,537 | 20,906 | ||||||
China Communications Construction Co. Ltd., Class H | 420,000 | 577,817 | ||||||
China Energy Engineering Corp. Ltd., Class H | 504,000 | 93,963 | ||||||
China Machinery Engineering Corp., Class H | 1,008,000 | 751,702 | ||||||
China Railway Construction Corp. Ltd., Class H(a) | 151,000 | 211,234 | ||||||
China Railway Group Ltd., Class H | 312,000 | 264,762 | ||||||
China State Construction International Holdings Ltd. | 60,000 | 108,929 | ||||||
CTCI Corp. | 38,000 | 66,501 | ||||||
Daelim Industrial Co. Ltd. | 2,300 | 162,308 | ||||||
Daewoo Engineering & Construction Co. Ltd.* | 15,661 | 100,333 | ||||||
Dialog Group Bhd. | 219,888 | 98,775 | ||||||
Engineers India Ltd. | 15,792 | 40,849 | ||||||
Gamuda Bhd. | 67,200 | 81,581 | ||||||
GMR Infrastructure Ltd.* | 102,144 | 27,390 | ||||||
Grana y Montero SAA* | 12,282 | 8,290 | ||||||
GS Engineering & Construction Corp.* | 4,956 | 136,324 | ||||||
Hyundai Development Co-Engineering & Construction | 5,544 | 217,784 | ||||||
Hyundai Engineering & Construction Co. Ltd. | 6,216 | 265,214 | ||||||
IJM Corp. Bhd. | 109,200 | 88,044 | ||||||
Impulsora del Desarrollo y el Empleo en America Latina SAB de CV* | 12,600 | 20,745 | ||||||
IRB Infrastructure Developers Ltd. | 3,792 | 15,376 | ||||||
Italian-Thai Development PCL, NVDR | 135,443 | 17,620 | ||||||
Kumho Industrial Co. Ltd. | 22,176 | 182,218 | ||||||
Larsen & Toubro Ltd. | 7,789 | 211,850 |
Shares | Value | |||||||
Construction & Engineering – (continued) | ||||||||
Larsen & Toubro Ltd., GDR | 3,310 | $ | 89,866 | |||||
Malaysian Resources Corp. Bhd.* | 70,600 | 24,721 | ||||||
Metallurgical Corp. of China Ltd., Class H | 3,528,000 | 1,306,406 | ||||||
Metka Industrial – Construction SA | 27,132 | 206,818 | ||||||
NCC Ltd. | 48,783 | 72,382 | ||||||
Orascom Construction Ltd.* | 70,224 | 414,322 | ||||||
Pembangunan Perumahan Persero Tbk. PT | 90,600 | 21,615 | ||||||
Run Long Construction Co. Ltd. | 168,000 | 269,504 | ||||||
Sadbhav Engineering Ltd. | 7,246 | 37,632 | ||||||
Samsung Engineering Co. Ltd.* | 7,476 | 80,154 | ||||||
Sinopec Engineering Group Co. Ltd., Class H | 78,474 | 76,683 | ||||||
Sino-Thai Engineering & Construction PCL, NVDR | 41,571 | 29,204 | ||||||
Taeyoung Engineering & Construction Co. Ltd.* | 5,766 | 32,025 | ||||||
Tekfen Holding A/S | 18,423 | 47,486 | ||||||
UEM Edgenta Bhd.* | 47,200 | 34,903 | ||||||
Voltas Ltd. | 1,488 | 9,508 | ||||||
Waskita Karya Persero Tbk. PT | 99,200 | 17,787 | ||||||
Wijaya Karya Persero Tbk. PT | 128,366 | 22,824 | ||||||
Wilson Bayly Holmes-Ovcon Ltd. | 54,720 | 586,869 | ||||||
7,558,197 | ||||||||
Construction Materials – 1.6% | ||||||||
ACC Ltd. | 1,496 | 37,826 | ||||||
Akcansa Cimento A/S | 59,136 | 204,511 | ||||||
Ambuja Cements Ltd. | 26,292 | 100,501 | ||||||
Anhui Conch Cement Co. Ltd., Class H | 92,000 | 322,338 | ||||||
Asia Cement Corp. | 89,020 | 87,925 | ||||||
BBMG Corp., Class H(a) | 2,856,000 | 1,531,269 | ||||||
Cahya Mata Sarawak Bhd. | 15,700 | 16,456 | ||||||
Cementos Argos SA | 7,757 | 31,260 | ||||||
Cementos Argos SA (Preference) | 3,126 | 11,623 | ||||||
Cementos Pacasmayo SAA | 29,288 | 63,189 | ||||||
Cemex SAB de CV* | 571,200 | 521,304 | ||||||
Century Textiles & Industries Ltd. | 2,602 | 45,647 |
See Accompanying Notes to the Financial Statements.
130 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Construction Materials – (continued) | ||||||||
CHC Resources Corp. | 6,000 | $ | 10,719 | |||||
China National Building Material Co. Ltd., Class H | 222,000 | 147,856 | ||||||
China Resources Cement Holdings Ltd. | 168,000 | 92,019 | ||||||
China Shanshui Cement Group Ltd.* (c) | 541,000 | 34,780 | ||||||
Cimsa Cimento Sanayi ve Ticaret A/S | 51,408 | 216,843 | ||||||
CSG Holding Co. Ltd., Class B | 20,310 | 14,545 | ||||||
Dalmia Bharat Ltd.* | 570 | 19,247 | ||||||
Eugene Corp. | 50,764 | 262,765 | ||||||
Goldsun Building Materials Co. Ltd. | 73,000 | 19,913 | ||||||
Grasim Industries Ltd. | 5,208 | 93,510 | ||||||
Grupo Argos SA | 17,304 | 119,542 | ||||||
Grupo Argos SA (Preference) | 5,305 | 34,313 | ||||||
Hanil Cement Co. Ltd. | 6,048 | 621,861 | ||||||
Holcim Indonesia Tbk. PT | 358,500 | 24,207 | ||||||
Indocement Tunggal Prakarsa Tbk. PT | 27,300 | 34,716 | ||||||
JK Lakshmi Cement Ltd. | 657 | 4,710 | ||||||
Lafarge Malaysia Bhd. | 6,300 | 9,172 | ||||||
POSCO Chemtech Co. Ltd. | 96 | 1,215 | ||||||
PPC Ltd.* (a) | 34,424 | 16,075 | ||||||
Prism Cement Ltd.* | 10,157 | 19,247 | ||||||
Qatar National Cement Co. QSC | 820 | 17,025 | ||||||
Ramco Cements Ltd. (The)* | 4,924 | 52,608 | ||||||
SAMPYO Cement Co. Ltd.* | 1,723 | 5,724 | ||||||
Semen Baturaja Persero Tbk. PT | 86,000 | 22,776 | ||||||
Semen Indonesia Persero Tbk. PT | 117,600 | 77,862 | ||||||
Shree Cement Ltd. | 421 | 125,571 | ||||||
Siam Cement PCL (The), NVDR | 10,950 | 169,679 | ||||||
Siam City Cement PCL, NVDR | 3,700 | 29,630 | ||||||
Ssangyong Cement Industrial Co. Ltd. | 717 | 8,412 | ||||||
Taiwan Cement Corp. | 168,000 | 195,446 | ||||||
Tipco Asphalt PCL, NVDR | 739,200 | 534,258 | ||||||
Titan Cement Co. SA | 1,860 | 48,590 | ||||||
Tongyang, Inc. | 11,656 | 22,075 |
Shares | Value | |||||||
Construction Materials – (continued) | ||||||||
TPI Polene PCL, NVDR | 377,200 | $ | 25,517 | |||||
UltraTech Cement Ltd. | 4,032 | 266,311 | ||||||
Union Andina de Cementos SAA | 25,547 | 18,504 | ||||||
Universal Cement Corp. | 492,952 | 426,437 | ||||||
West China Cement Ltd.* | 46,008 | 6,921 | ||||||
Wijaya Karya Beton Tbk. PT | 294,300 | 16,339 | ||||||
6,840,789 | ||||||||
Consumer Finance – 0.4% | ||||||||
AEON Credit Service M Bhd. | 60,300 | 226,976 | ||||||
AEON Thana Sinsap Thailand PCL, NVDR | 87,600 | 260,850 | ||||||
Bajaj Finance Ltd. | 6,300 | 124,982 | ||||||
Bharat Financial Inclusion Ltd.* | 3,036 | 37,928 | ||||||
Cholamandalam Investment and Finance Co. Ltd. | 707 | 12,219 | ||||||
Credit China Fintech Holdings Ltd.* | 1,148,000 | 150,556 | ||||||
Credito Real SAB de CV SOFOM ER | 15,700 | 21,832 | ||||||
Gentera SAB de CV | 50,400 | 83,815 | ||||||
Group Lease PCL, NVDR | 21,900 | 14,119 | ||||||
KB Capital Co. Ltd. | 12,022 | 287,370 | ||||||
KRUK SA | 840 | 61,898 | ||||||
Krungthai Card PCL, NVDR | 3,800 | 14,886 | ||||||
Mahindra & Mahindra Financial Services Ltd. | 8,379 | 43,920 | ||||||
Manappuram Finance Ltd. | 13,504 | 19,617 | ||||||
Muthoot Finance Ltd. | 2,666 | 16,341 | ||||||
Repco Home Finance Ltd. | 995 | 11,889 | ||||||
Samsung Card Co. Ltd. | 1,722 | 60,381 | ||||||
Shriram City Union Finance Ltd. | 1,451 | 50,459 | ||||||
Shriram Transport Finance Co. Ltd. | 7,392 | 119,349 | ||||||
Srisawad Power 1979 PCL, NVDR | 1,214 | 1,553 | ||||||
Sundaram Finance Ltd. | 1,310 | 32,596 | ||||||
Taiwan Acceptance Corp. | 11,000 | 32,266 | ||||||
Unifin Financiera SAB de CV SOFOM ENR | 6,200 | 16,096 | ||||||
1,701,898 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 131 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Containers & Packaging – 0.5% | ||||||||
Beijing Enterprises Clean Energy Group Ltd.* | 640,000 | $ | 17,774 | |||||
Cheng Loong Corp. | 1,231,000 | 583,451 | ||||||
Great China Metal Industry | 240,000 | 207,219 | ||||||
Greatview Aseptic Packaging Co. Ltd. | 73,000 | 37,826 | ||||||
Klabin SA | 29,700 | 146,420 | ||||||
Klabin SA (Preference) | 135,200 | 119,612 | ||||||
Lock&Lock Co. Ltd. | 2,071 | 25,935 | ||||||
Nampak Ltd.* (a) | 675,880 | 903,951 | ||||||
Youlchon Chemical Co. Ltd. | 11,508 | 134,508 | ||||||
2,176,696 | ||||||||
Distributors – 0.2% | ||||||||
Dah Chong Hong Holdings Ltd. | 924,000 | 399,180 | ||||||
Dogus Otomotiv Servis ve Ticaret A/S* | 59,419 | 152,153 | ||||||
Imperial Holdings Ltd. | 15,960 | 201,519 | ||||||
Inter Cars SA | 144 | 11,500 | ||||||
Test Rite International Co. Ltd. | 191,000 | 125,978 | ||||||
890,330 | ||||||||
Diversified Consumer Services – 0.3% | ||||||||
Advtech Ltd. | 647,286 | 923,744 | ||||||
Curro Holdings Ltd.* (a) | 19,769 | 68,315 | ||||||
Daekyo Co. Ltd. | 4,590 | 34,489 | ||||||
Estacio Participacoes SA | 16,800 | 92,960 | ||||||
Fu Shou Yuan International Group Ltd. | 11,000 | 7,001 | ||||||
Kroton Educacional SA | 58,800 | 276,096 | ||||||
Lung Yen Life Service Corp. | 4,000 | 7,597 | ||||||
Virscend Education Co. Ltd.* (b) | 22,000 | 14,822 | ||||||
1,425,024 | ||||||||
Diversified Financial Services – 1.5% | ||||||||
Al Waha Capital PJSC | 1,126,579 | 573,565 | ||||||
Alexander Forbes Group Holdings Ltd. | 44,842 | 21,577 | ||||||
Ayala Corp. | 10,920 | 189,376 | ||||||
Bajaj Holdings & Investment Ltd. | 880 | 28,925 |
Shares | Value | |||||||
Diversified Financial Services – (continued) | ||||||||
BTG Pactual Group* | 27,008 | $ | 156,536 | |||||
Chailease Holding Co. Ltd. | 84,000 | 214,100 | ||||||
China Development Bank Financial Leasing Co. Ltd., Class H* (b) | 1,132,000 | 292,550 | ||||||
Corp. Financiera Colombiana SA | 1,102 | 10,539 | ||||||
Far East Horizon Ltd. | 168,000 | 154,660 | ||||||
FirstRand Ltd.(a) | 130,893 | 487,533 | ||||||
Fubon Financial Holding Co. Ltd. | 634,000 | 993,941 | ||||||
Grupo de Inversiones Suramericana SA | 10,416 | 137,213 | ||||||
Grupo de Inversiones Suramericana SA (Preference) | 1,425 | 18,174 | ||||||
GT Capital Holdings, Inc. | 2,940 | 74,140 | ||||||
Haci Omer Sabanci Holding A/S | 111,217 | 331,108 | ||||||
Hankook Tire Worldwide Co. Ltd. | 1,342 | 23,587 | ||||||
IFCI Ltd.* | 812,124 | 400,192 | ||||||
Inversiones La Construccion SA | 38,556 | 532,477 | ||||||
L&T Finance Holdings Ltd. | 10,808 | 21,438 | ||||||
Meritz Financial Group, Inc. | 2,333 | 26,038 | ||||||
Metro Pacific Investments Corp. | 730,800 | 96,241 | ||||||
NICE Holdings Co. Ltd. | 20,832 | 351,502 | ||||||
NICE Information Service Co. Ltd. | 3,576 | 25,110 | ||||||
Power Finance Corp. Ltd. | 71,988 | 179,047 | ||||||
PSG Group Ltd. | 5,817 | 109,983 | ||||||
Reliance Capital Ltd. | 10,746 | 111,051 | ||||||
Remgro Ltd.(a) | 21,116 | 350,004 | ||||||
RMB Holdings Ltd. | 30,660 | 140,520 | ||||||
Rural Electrification Corp. Ltd. | 77,146 | 242,903 | ||||||
6,294,030 | ||||||||
Diversified Telecommunication Services – 1.0% | ||||||||
APT Satellite Holdings Ltd. | 45,750 | 24,823 | ||||||
Asia Pacific Telecom Co. Ltd.* | 101,899 | 32,828 | ||||||
Bharti Infratel Ltd. | 23,856 | 131,536 | ||||||
China Communications Services Corp. Ltd., Class H | 196,000 | 111,639 |
See Accompanying Notes to the Financial Statements.
132 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
China Telecom Corp. Ltd., Class H | 1,176,000 | $ | 574,577 | |||||
China Unicom Hong Kong Ltd. | 228,000 | 294,324 | ||||||
Chunghwa Telecom Co. Ltd. | 168,000 | 567,963 | ||||||
CITIC Telecom International Holdings Ltd. | 73,000 | 22,526 | ||||||
Emirates Telecommunications Group Co. PJSC | 76,390 | 362,920 | ||||||
Hellenic Telecommunications Organization SA | 12,348 | 120,076 | ||||||
Jasmine International PCL, NVDR | 76,400 | 18,995 | ||||||
LG Uplus Corp. | 17,532 | 222,636 | ||||||
Link Net Tbk. PT* | 86,800 | 35,166 | ||||||
Magyar Telekom Telecommunications plc | 10,996 | 18,404 | ||||||
Netia SA | 25,196 | 28,564 | ||||||
O2 Czech Republic A/S* | 3,092 | 36,509 | ||||||
Ooredoo QSC | 4,704 | 134,094 | ||||||
Orange Polska SA | 14,950 | 17,834 | ||||||
Rostelecom PJSC | 79,716 | 104,203 | ||||||
Rostelecom PJSC (Preference) | 29,982 | 30,196 | ||||||
Tata Communications Ltd. | 5,003 | 56,077 | ||||||
Telefonica Brasil SA (Preference) | 16,800 | 247,683 | ||||||
Telekom Malaysia Bhd. | 75,600 | 112,503 | ||||||
Telekomunikasi Indonesia Persero Tbk. PT | 1,915,200 | 627,911 | ||||||
Telkom SA SOC Ltd. | 26,090 | 145,775 | ||||||
Thaicom PCL, NVDR | 554,400 | 291,705 | ||||||
TIME dotCom Bhd. | 9,600 | 19,527 | ||||||
True Corp. PCL, NVDR* | 396,641 | 75,108 | ||||||
Turk Telekomunikasyon A/S | 9,573 | 17,186 | ||||||
4,483,288 | ||||||||
Electric Utilities – 1.8% | ||||||||
Adani Transmission Ltd.* | 320,258 | 386,570 | ||||||
Celsia SA ESP | 29,264 | 44,397 | ||||||
Centrais Eletricas Brasileiras SA* | 11,800 | 65,662 | ||||||
Centrais Eletricas Brasileiras SA (Preference), Class B* | 13,800 | 96,852 | ||||||
CESC Ltd. | 79,464 | 1,166,823 |
Shares | Value | |||||||
Electric Utilities – (continued) | ||||||||
CEZ A/S | 13,524 | $ | 236,070 | |||||
Cia Energetica de Minas Gerais | 1,577 | 4,590 | ||||||
Cia Energetica de Minas Gerais (Preference) | 70,771 | 195,578 | ||||||
Cia Paranaense de Energia* | 200 | 1,463 | ||||||
Cia Paranaense de Energia (Preference)* | 6,500 | 59,457 | ||||||
CPFL Energia SA | 25,643 | 207,786 | ||||||
EDP – Energias do Brasil SA* | 19,407 | 81,843 | ||||||
Enea SA* | 15,141 | 46,501 | ||||||
Enel Americas SA | 2,506,560 | 496,309 | ||||||
Enel Chile SA | 1,634,304 | 180,488 | ||||||
Energa SA | 14,299 | 36,694 | ||||||
Engie Energia Chile SA | 11,616 | 21,288 | ||||||
Equatorial Energia SA | 8,400 | 150,994 | ||||||
Federal Grid Co. Unified Energy System PJSC | 20,820,529 | 71,748 | ||||||
First Philippine Holdings Corp. | 283,460 | 411,305 | ||||||
Inter RAO UES PJSC | 2,860,715 | 203,286 | ||||||
Interconexion Electrica SA ESP | 8,946 | 35,324 | ||||||
Korea District Heating Corp. | 372 | 23,080 | ||||||
Korea Electric Power Corp. | 22,680 | 903,891 | ||||||
Light SA* | 92,400 | 635,488 | ||||||
Luz del Sur SAA | 7,464 | 26,111 | ||||||
Manila Electric Co. | 8,280 | 46,401 | ||||||
Moscow United Electric Grid Co. PJSC | 17,882,197 | 315,016 | ||||||
Mosenergo PJSC | 9,911,076 | 406,403 | ||||||
PGE Polska Grupa Energetyczna SA | 63,322 | 188,113 | ||||||
Power Grid Corp. of India Ltd. | 64,344 | 208,045 | ||||||
Public Power Corp. SA* | 7,874 | 28,982 | ||||||
Reliance Infrastructure Ltd. | 13,132 | 121,715 | ||||||
ROSSETI PJSC | 3,116,392 | 52,493 | ||||||
RusHydro PJSC | 11,901,136 | 186,891 | ||||||
Tata Power Co. Ltd. (The) | 65,521 | 85,861 | ||||||
Tauron Polska Energia SA* | 69,096 | 58,571 | ||||||
Tenaga Nasional Bhd. | 117,600 | 377,642 | ||||||
Torrent Power Ltd.* | 9,504 | 33,574 | ||||||
Transmissora Alianca de Energia Eletrica SA | 2,600 | 19,068 | ||||||
7,918,373 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 133 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – 0.7% | ||||||||
ABB India Ltd. | 1,456 | $ | 31,904 | |||||
AcBel Polytech, Inc. | 3,000 | 2,327 | ||||||
Amara Raja Batteries Ltd.* | 2,733 | 37,815 | ||||||
Bharat Heavy Electricals Ltd. | 19,908 | 54,373 | ||||||
CG Power and Industrial Solutions Ltd.* | 12,473 | 15,240 | ||||||
China High Speed Transmission Equipment Group Co. Ltd.(a) | 94,000 | 91,371 | ||||||
Chung-Hsin Electric & Machinery Manufacturing Corp. | 420,000 | 262,404 | ||||||
CS Wind Corp. | 620 | 10,570 | ||||||
Doosan Heavy Industries & Construction Co. Ltd. | 2,898 | 59,213 | ||||||
ElSewedy Electric Co. | 8,798 | 38,916 | ||||||
FDG Electric Vehicles Ltd.* | 630,000 | 29,161 | ||||||
GE T&D India Ltd. | 2,883 | 15,394 | ||||||
Havells India Ltd. | 17,370 | 130,660 | ||||||
Jiangnan Group Ltd.(a) | 2,148,000 | 276,180 | ||||||
Korea Electric Terminal Co. Ltd. | 144 | 8,998 | ||||||
Kung Long Batteries Industrial Co. Ltd. | 5,000 | 25,438 | ||||||
LS Corp. | 2,953 | 169,203 | ||||||
LS Industrial Systems Co. Ltd. | 92 | 4,107 | ||||||
Schneider Electric Infrastructure Ltd.* | 2,601 | 6,097 | ||||||
Shanghai Electric Group Co. Ltd., Class H* (a) | 222,000 | 104,755 | ||||||
Shihlin Electric & Engineering Corp. | 26,000 | 34,858 | ||||||
Suzlon Energy Ltd.* | 236,827 | 75,838 | ||||||
Teco Electric and Machinery Co. Ltd. | 84,000 | 83,246 | ||||||
Voltronic Power Technology Corp. | 1,323 | 18,877 | ||||||
Walsin Lihwa Corp. | 252,000 | 113,175 | ||||||
Welling Holding Ltd. | 1,022,000 | 229,957 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H | 604,800 | 881,824 | ||||||
Zhuzhou CRRC Times Electric Co. Ltd. | 20,400 | 105,048 | ||||||
2,916,949 |
Shares | Value | |||||||
Electronic Equipment, Instruments & Components – 3.7% | ||||||||
AAC Technologies Holdings, Inc.(a) | 30,000 | $ | 440,499 | |||||
AU Optronics Corp. | 738,000 | 308,203 | ||||||
Aurora Corp. | 7,000 | 13,433 | ||||||
Boardtek Electronics Corp. | 168,000 | 154,519 | ||||||
Cheng Uei Precision Industry Co. Ltd. | 11,000 | 15,440 | ||||||
China Railway Signal & Communication Corp. Ltd., Class H(b) | 46,008 | 35,966 | ||||||
Chin-Poon Industrial Co. Ltd. | 12,000 | 24,500 | ||||||
Chroma ATE, Inc. | 13,000 | 40,675 | ||||||
Chunghwa Precision Test Tech Co. Ltd. | 1,000 | 38,945 | ||||||
Compeq Manufacturing Co. Ltd. | 76,000 | 55,921 | ||||||
Coretronic Corp. | 465,000 | 659,640 | ||||||
CyberPower Systems, Inc. | 53,000 | 171,976 | ||||||
Daeduck Electronics Co. | 39,379 | 321,151 | ||||||
DataTec Ltd.(a) | 231,559 | 1,004,525 | ||||||
Delta Electronics Thailand PCL, NVDR | 35,400 | 94,154 | ||||||
Delta Electronics, Inc. | 84,000 | 473,302 | ||||||
Digital China Holdings Ltd.* (a) | 90,000 | 74,059 | ||||||
E Ink Holdings, Inc. | 48,000 | 49,001 | ||||||
Egis Technology, Inc.* | 4,000 | 22,074 | ||||||
Elite Material Co. Ltd. | 26,000 | 103,842 | ||||||
Firich Enterprises Co. Ltd. | 8,582 | 13,312 | ||||||
FLEXium Interconnect, Inc. | 22,047 | 81,842 | ||||||
Flytech Technology Co. Ltd. | 9,235 | 31,527 | ||||||
General Interface Solution Holding Ltd. | 10,000 | 55,848 | ||||||
Hana Microelectronics PCL, NVDR | 22,400 | 27,522 | ||||||
HannStar Display Corp.* | 98,000 | 26,375 | ||||||
Hollysys Automation Technologies Ltd. | 2,100 | 33,684 | ||||||
Holy Stone Enterprise Co. Ltd. | 234,000 | 323,029 | ||||||
Hon Hai Precision Industry Co. Ltd. | 1,297,900 | 4,250,191 | ||||||
Iljin Materials Co. Ltd. | 1,426 | 21,116 | ||||||
Inari Amertron Bhd. | 86,250 | 41,526 | ||||||
Innolux Corp. | 791,489 | 369,892 | ||||||
ITEQ Corp. | 252,000 | 377,946 |
See Accompanying Notes to the Financial Statements.
134 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
KCE Electronics PCL, NVDR | 13,800 | $ | 42,489 | |||||
Kingboard Chemical Holdings Ltd. | 53,500 | 192,950 | ||||||
Kingboard Laminates Holdings Ltd. | 48,000 | 57,890 | ||||||
Kingpak Technology, Inc. | 36,000 | 205,230 | ||||||
Largan Precision Co. Ltd. | 4,000 | 664,877 | ||||||
LG Display Co. Ltd. | 10,459 | 270,230 | ||||||
LG Innotek Co. Ltd. | 655 | 75,694 | ||||||
Lotes Co. Ltd. | 66,000 | 254,847 | ||||||
Merry Electronics Co. Ltd. | 6,000 | 35,597 | ||||||
Nan Ya Printed Circuit Board Corp. | 11,000 | 9,643 | ||||||
Pan-International Industrial Corp. | 9,000 | 8,397 | ||||||
Partron Co. Ltd. | 55,608 | 532,672 | ||||||
PAX Global Technology Ltd. | 33,000 | 20,451 | ||||||
Posiflex Technology, Inc. | 6,616 | 36,072 | ||||||
Redington India Ltd. | 276,108 | 535,649 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 2,604 | 167,284 | ||||||
Samsung SDI Co. Ltd. | 2,268 | 274,058 | ||||||
SFA Engineering Corp. | 599 | 41,165 | ||||||
Simplo Technology Co. Ltd. | 17,000 | 56,909 | ||||||
Sinbon Electronics Co. Ltd. | 3,253 | 8,033 | ||||||
Sunny Optical Technology Group Co. Ltd. | 28,000 | 230,407 | ||||||
Synnex Technology International Corp. | 84,000 | 91,041 | ||||||
Taiwan PCB Techvest Co. Ltd. | 343,662 | 367,912 | ||||||
Taiwan Union Technology Corp. | 252,000 | 452,700 | ||||||
Test Research, Inc. | 183,000 | 243,527 | ||||||
Tong Hsing Electronic Industries Ltd. | 4,000 | 16,970 | ||||||
Tongda Group Holdings Ltd.(a) | 150,000 | 59,016 | ||||||
TPK Holding Co. Ltd.* | 23,000 | 82,331 | ||||||
Tripod Technology Corp. | 41,000 | 115,916 | ||||||
Unimicron Technology Corp. | 46,000 | 28,358 | ||||||
Wah Lee Industrial Corp. | 209,000 | 343,588 | ||||||
Walsin Technology Corp. | 10,000 | 19,158 |
Shares | Value | |||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Wasion Group Holdings Ltd.(a) | 672,000 | $ | 327,466 | |||||
Wintek Corp.* (c) | 64,000 | — | ||||||
WPG Holdings Ltd. | 84,000 | 106,493 | ||||||
WT Microelectronics Co. Ltd. | 27,000 | 38,749 | ||||||
Yageo Corp. | 29,615 | 104,537 | ||||||
Zhen Ding Technology Holding Ltd. | 34,150 | 79,911 | ||||||
15,953,852 | ||||||||
Energy Equipment & Services – 0.2% | ||||||||
Bumi Armada Bhd. | 132,900 | 24,186 | ||||||
China Oilfield Services Ltd., Class H | 168,000 | 155,092 | ||||||
Gulf International Services QSC | 2,297 | 16,149 | ||||||
Sapura Energy Bhd. | 218,400 | 100,622 | ||||||
TMK PJSC | 347,676 | 448,373 | ||||||
UMW Oil & Gas Corp. Bhd.* | 87,700 | 13,738 | ||||||
Wison Engineering Services Co. Ltd.* | 924,000 | 93,855 | ||||||
Yinson Holdings Bhd. | 25,800 | 19,910 | ||||||
871,925 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 0.9% | ||||||||
Arrowhead Properties Ltd. | 1,102,223 | 727,197 | ||||||
Axis REIT | 94,966 | 35,878 | ||||||
Capitaland Malaysia Mall Trust | 72,500 | 24,885 | ||||||
Concentradora Fibra Danhos SA de CV | 26,600 | 45,525 | ||||||
Concentradora Hipotecaria SAPI de CV | 495,600 | 596,984 | ||||||
Emira Property Fund Ltd. | 538,503 | 563,298 | ||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S | 181,440 | 150,615 | ||||||
Fibra Uno Administracion SA de CV* | 117,600 | 203,749 | ||||||
Fortress Income Fund Ltd.(a) | 81,027 | 203,116 | ||||||
Fortress Income Fund Ltd., Class A | 104,021 | 136,246 | ||||||
Growthpoint Properties Ltd. | 101,514 | 194,324 | ||||||
Hyprop Investments Ltd. | 13,370 | 123,313 | ||||||
Investec Property Fund Ltd. | 8,235 | 9,716 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 135 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
KLCCP Stapled Group | 9,500 | $ | 17,135 | |||||
Macquarie Mexico Real Estate Management SA de CV* | 19,200 | 20,872 | ||||||
Pavilion REIT | 11,800 | 4,730 | ||||||
PLA Administradora Industrial S de RL de CV* | 50,400 | 84,346 | ||||||
Prologis Property Mexico SA de CV | 9,600 | 16,172 | ||||||
Redefine Properties Ltd.(a) | 202,303 | 166,271 | ||||||
Resilient REIT Ltd.(a) | 11,024 | 95,976 | ||||||
SA Corporate Real Estate Ltd. | 105,784 | 43,472 | ||||||
Sunway REIT | 39,400 | 15,430 | ||||||
Torunlar Gayrimenkul Yatirim Ortakligi A/S | 97,104 | 141,814 | ||||||
Vukile Property Fund Ltd. | 44,553 | 63,249 | ||||||
Yuexiu REIT | 32,000 | 18,844 | ||||||
3,703,157 | ||||||||
Food & Staples Retailing – 1.1% | ||||||||
Al Meera Consumer Goods Co. QSC | 314 | 13,530 | ||||||
Almacenes Exito SA | 19,693 | 101,635 | ||||||
BGF retail Co. Ltd. | 1,184 | 113,936 | ||||||
Bid Corp. Ltd. | 11,115 | 235,143 | ||||||
BIM Birlesik Magazalar A/S | 9,744 | 159,167 | ||||||
Cencosud SA | 43,176 | 123,097 | ||||||
Cia Brasileira de Distribuicao (Preference)* | 8,400 | 188,651 | ||||||
CJ Freshway Corp. | 708 | 21,404 | ||||||
Clicks Group Ltd.(a) | 9,408 | 94,356 | ||||||
Cosco Capital, Inc. | 3,477,600 | 567,942 | ||||||
CP ALL PCL, NVDR | 179,920 | 317,292 | ||||||
DIXY Group PJSC* | 68,712 | 259,208 | ||||||
Dongsuh Cos., Inc. | 2,791 | 75,668 | ||||||
E-MART, Inc. | 924 | 186,765 | ||||||
Eurocash SA | 1,939 | 17,186 | ||||||
Grupo Comercial Chedraui SA de CV | 9,800 | 20,155 | ||||||
GS Retail Co. Ltd. | 662 | 30,892 | ||||||
Hyundai Greenfood Co. Ltd. | 2,135 | 30,020 | ||||||
Magnit PJSC | 2,352 | 362,169 | ||||||
Massmart Holdings Ltd. | 4,015 | 38,768 |
Shares | Value | |||||||
Food & Staples Retailing – (continued) | ||||||||
Matahari Putra Prima Tbk. PT* | 95,800 | $ | 6,792 | |||||
Pick n Pay Stores Ltd. | 16,296 | 77,317 | ||||||
President Chain Store Corp. | 21,000 | 182,708 | ||||||
Puregold Price Club, Inc. | 47,000 | 39,225 | ||||||
Raia Drogasil SA* | 8,900 | 186,998 | ||||||
Robinsons Retail Holdings, Inc. | 20,030 | 31,830 | ||||||
Shoprite Holdings Ltd.(a) | 14,868 | 233,067 | ||||||
SPAR Group Ltd. (The)(a) | 7,242 | 97,496 | ||||||
Sun Art Retail Group Ltd. | 127,000 | 130,959 | ||||||
Taiwan TEA Corp. | 781,000 | 423,233 | ||||||
Wal-Mart de Mexico SAB de CV | 184,800 | 413,853 | ||||||
4,780,462 | ||||||||
Food Products – 1.5% | ||||||||
Agthia Group PJSC* | 13,259 | 22,562 | ||||||
Alicorp SAA | 18,131 | 43,029 | ||||||
Astra Agro Lestari Tbk. PT | 17,111 | 18,486 | ||||||
AVI Ltd. | 12,936 | 94,470 | ||||||
Binggrae Co. Ltd. | 63 | 3,798 | ||||||
Biostime International Holdings Ltd.* | 2,500 | 8,116 | ||||||
BRF SA* | 25,800 | 319,556 | ||||||
Britannia Industries Ltd. | 552 | 31,101 | ||||||
Century Pacific Food, Inc. | 17,700 | 5,845 | ||||||
Charoen Pokphand Enterprise | 12,000 | 22,631 | ||||||
Charoen Pokphand Foods PCL, NVDR | 151,800 | 117,394 | ||||||
Charoen Pokphand Indonesia Tbk. PT | 344,400 | 82,424 | ||||||
China Agri-Industries Holdings Ltd.* (a) | 59,705 | 29,555 | ||||||
China Foods Ltd. | 10,789 | 4,162 | ||||||
China Huishan Dairy Holdings Co. Ltd.(a) (c) | 158,000 | 8,532 | ||||||
China Huiyuan Juice Group Ltd.* | 24,000 | 8,609 | ||||||
China Mengniu Dairy Co. Ltd. | 105,000 | 203,316 | ||||||
China Shengmu Organic Milk Ltd.* (b) | 73,000 | 15,299 | ||||||
CJ CheilJedang Corp. | 336 | 100,691 | ||||||
Dae Han Flour Mills Co. Ltd. | 1,344 | 207,878 | ||||||
Daesang Corp. | 945 | 19,724 |
See Accompanying Notes to the Financial Statements.
136 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Daesang Holdings Co. Ltd. | 1,814 | $ | 15,511 | |||||
Dali Foods Group Co. Ltd.(b) | 126,000 | 74,360 | ||||||
Dongwon F&B Co. Ltd. | 79 | 17,773 | ||||||
Dongwon Industries Co. Ltd. | 73 | 21,652 | ||||||
Dutch Lady Milk Industries Bhd. | 2,600 | 34,499 | ||||||
Easy Bio, Inc. | 39,060 | 216,943 | ||||||
Felda Global Ventures Holdings Bhd. | 75,600 | 37,095 | ||||||
Genting Plantations Bhd. | 12,700 | 33,410 | ||||||
GlaxoSmithKline Consumer Healthcare Ltd. | 270 | 21,482 | ||||||
Great Wall Enterprise Co. Ltd. | 27,800 | 26,905 | ||||||
Gruma SAB de CV, Class B | 6,300 | 83,450 | ||||||
Grupo Bimbo SAB de CV, Series A | 58,800 | 142,773 | ||||||
Grupo Herdez SAB de CV | 13,014 | 28,692 | ||||||
Grupo Lala SAB de CV(a) | 9,600 | 17,260 | ||||||
Grupo Nutresa SA | 13,860 | 114,618 | ||||||
IJM Plantations Bhd. | 26,800 | 19,015 | ||||||
Indofood CBP Sukses Makmur Tbk. PT | 54,000 | 35,550 | ||||||
Indofood Sukses Makmur Tbk. PT | 159,600 | 100,281 | ||||||
Industrias Bachoco SAB de CV, Series B | 7,300 | 32,319 | ||||||
IOI Corp. Bhd. | 92,400 | 97,700 | ||||||
Japfa Comfeed Indonesia Tbk. PT | 365,800 | 40,205 | ||||||
JBS SA | 75,600 | 242,247 | ||||||
Kernel Holding SA | 4,004 | 71,183 | ||||||
Khon Kaen Sugar Industry PCL, NVDR | 273,504 | 42,698 | ||||||
KRBL Ltd.* | 2,726 | 18,654 | ||||||
Kuala Lumpur Kepong Bhd. | 21,100 | 119,183 | ||||||
Leyou Technologies Holdings Ltd.* | 90,000 | 18,515 | ||||||
Lien Hwa Industrial Corp. | 49,200 | 44,600 | ||||||
Lotte Confectionery Co. Ltd. | 420 | 75,666 | ||||||
Lotte Food Co. Ltd. | 62 | 34,980 | ||||||
M Dias Branco SA* | 3,000 | 45,720 | ||||||
Maeil Dairy Industry Co. Ltd.(c) | 546 | 25,911 | ||||||
Marfrig Global Foods SA* | 14,400 | 31,962 |
Shares | Value | |||||||
Food Products – (continued) | ||||||||
Minerva SA | 126,000 | $ | 399,018 | |||||
Namchow Chemical Industrial Co. Ltd. | 17,000 | 34,371 | ||||||
Namyang Dairy Products Co. Ltd. | 35 | 26,667 | ||||||
Nestle India Ltd. | 924 | 96,203 | ||||||
Nestle Malaysia Bhd. | 2,200 | 41,557 | ||||||
Nong Shim Holdings Co. Ltd. | 48 | 4,556 | ||||||
NongShim Co. Ltd. | 253 | 70,482 | ||||||
Oceana Group Ltd. | 987 | 7,332 | ||||||
Orion Corp. | 168 | 99,805 | ||||||
Ottogi Corp. | 69 | 44,690 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk. PT | 62,400 | 6,531 | ||||||
Pioneer Foods Group Ltd. | 3,591 | 44,234 | ||||||
PPB Group Bhd. | 20,600 | 80,198 | ||||||
Pulmuone Co. Ltd. | 1,932 | 220,722 | ||||||
QL Resources Bhd. | 38,100 | 41,690 | ||||||
Salim Ivomas Pratama Tbk. PT | 3,956,400 | 188,485 | ||||||
Samyang Corp. | 248 | 21,010 | ||||||
Samyang Holdings Corp. | 310 | 34,463 | ||||||
Sao Martinho SA | 3,000 | 16,497 | ||||||
Sawit Sumbermas Sarana Tbk. PT | 15,300 | 2,009 | ||||||
SPC Samlip Co. Ltd. | 191 | 35,333 | ||||||
Standard Foods Corp. | 12,974 | 32,036 | ||||||
Tata Global Beverages Ltd. | 7,341 | 17,471 | ||||||
Tenwow International Holdings Ltd. | 756,000 | 158,441 | ||||||
Thai Union Group PCL, NVDR | 142,800 | 87,934 | ||||||
Thai Vegetable Oil PCL, NVDR | 15,570 | 16,430 | ||||||
Tiger Brands Ltd. | 6,972 | 210,430 | ||||||
Tingyi Cayman Islands Holding Corp. | 66,000 | 84,775 | ||||||
Tongaat Hulett Ltd. | 2,286 | 20,625 | ||||||
Ulker Biskuvi Sanayi A/S | 7,590 | 43,100 | ||||||
Uni-President China Holdings Ltd.(a) | 88,000 | 61,778 | ||||||
Uni-President Enterprises Corp. | 197,000 | 363,690 | ||||||
Universal Robina Corp. | 33,280 | 114,563 | ||||||
Want Want China Holdings Ltd.(a) | 252,000 | 181,445 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 137 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Wei Chuan Foods Corp.* | 289,000 | $ | 177,206 | |||||
Yashili International Holdings Ltd. | 34,000 | 5,945 | ||||||
6,441,712 | ||||||||
Gas Utilities – 0.4% | ||||||||
Aygaz A/S | 5,207 | 20,762 | ||||||
China Gas Holdings Ltd. | 75,640 | 118,650 | ||||||
China Resources Gas Group Ltd. | 32,000 | 108,003 | ||||||
E1 Corp. | 3,024 | 154,668 | ||||||
Empresa de Energia de Bogota SA ESP | 65,205 | 40,740 | ||||||
ENN Energy Holdings Ltd. | 26,000 | 141,073 | ||||||
GAIL India Ltd. | 16,574 | 109,227 | ||||||
Gas Malaysia Bhd. | 20,300 | 14,450 | ||||||
Great Taipei Gas Co. Ltd. | 31,000 | 25,841 | ||||||
Gujarat State Petronet Ltd. | 28,924 | 81,381 | ||||||
Infraestructura Energetica Nova SAB de CV | 21,200 | 98,237 | ||||||
Korea Gas Corp.* | 2,688 | 110,081 | ||||||
Perusahaan Gas Negara Persero Tbk.* | 907,200 | 165,391 | ||||||
Petronas Gas Bhd. | 16,800 | 71,519 | ||||||
Samchully Co. Ltd. | 3,601 | 335,448 | ||||||
Towngas China Co. Ltd.* | 54,000 | 32,285 | ||||||
1,627,756 | ||||||||
Health Care Equipment & Supplies – 0.1% | ||||||||
Bioteque Corp. | 1,000 | 3,192 | ||||||
Boditech Med, Inc. | 1,432 | 24,288 | ||||||
DIO Corp.* | 666 | 20,602 | ||||||
Ginko International Co. Ltd. | 2,000 | 16,473 | ||||||
Hartalega Holdings Bhd. | 9,400 | 10,611 | ||||||
Huons Global Co. Ltd. | 437 | 12,846 | ||||||
InBody Co. Ltd. | 1,280 | 30,034 | ||||||
Interojo Co. Ltd. | 868 | 29,864 | ||||||
i-SENS, Inc. | 942 | 24,421 | ||||||
Lifetech Scientific Corp.* | 82,000 | 21,086 | ||||||
Lutronic Corp. | 1,794 | 22,861 | ||||||
Microport Scientific Corp.* | 11,000 | 7,666 | ||||||
Osstem Implant Co. Ltd.* | 96 | 4,455 |
Shares | Value | |||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Pihsiang Machinery Manufacturing Co. Ltd.* | 5,000 | $ | 9,612 | |||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H | 64,000 | 46,657 | ||||||
St Shine Optical Co. Ltd. | 1,000 | 19,356 | ||||||
Suheung Co. Ltd. | 550 | 18,053 | ||||||
Top Glove Corp. Bhd. | 14,800 | 15,581 | ||||||
Value Added Technologies Co. Ltd. | 510 | 13,087 | ||||||
Vieworks Co. Ltd. | 760 | 44,014 | ||||||
Yestar Healthcare Holdings Co. Ltd. | 60,000 | 30,010 | ||||||
424,769 | ||||||||
Health Care Providers & Services – 0.4% | ||||||||
Apollo Hospitals Enterprise Ltd.* | 2,124 | 40,718 | ||||||
Bangkok Chain Hospital PCL, NVDR | 110,900 | 42,000 | ||||||
Bangkok Dusit Medical Services PCL, NVDR | 134,400 | 78,876 | ||||||
Banmedica SA | 16,561 | 37,254 | ||||||
Bumrungrad Hospital PCL, NVDR | 20,200 | 102,489 | ||||||
Chabiotech Co. Ltd.* | 384 | 4,320 | ||||||
China Resources Phoenix Healthcare Holdings Co. Ltd.* | 7,000 | 8,991 | ||||||
Chularat Hospital PCL, NVDR | 157,300 | 10,823 | ||||||
Fleury SA | 3,600 | 59,805 | ||||||
Fortis Healthcare Ltd.* | 9,651 | 33,050 | ||||||
IHH Healthcare Bhd. | 84,000 | 119,585 | ||||||
KPJ Healthcare Bhd. | 25,006 | 24,194 | ||||||
Life Healthcare Group Holdings Ltd. | 70,187 | 150,666 | ||||||
Medicare Group | 16,848 | 448,811 | ||||||
Medipost Co. Ltd.* | 336 | 17,835 | ||||||
Mitra Keluarga Karyasehat Tbk. PT | 98,000 | 18,675 | ||||||
Netcare Ltd. | 57,120 | 113,141 | ||||||
Odontoprev SA | 12,500 | 44,587 | ||||||
Qualicorp SA | 6,900 | 48,534 |
See Accompanying Notes to the Financial Statements.
138 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
Selcuk Ecza Deposu Ticaret ve Sanayi A.S. | 145,740 | $ | 148,457 | |||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | 22,300 | 59,065 | ||||||
Siloam International Hospitals Tbk. PT* | 25,650 | 26,364 | ||||||
Sinopharm Group Co. Ltd., Class H | 45,200 | 202,825 | ||||||
Universal Medical Financial & Technical Advisory Services Co. Ltd.(b) | 62,000 | 53,012 | ||||||
Vibhavadi Medical Center PCL, NVDR | 382,700 | 31,643 | ||||||
1,925,720 | ||||||||
Health Care Technology – 0.0%(d) | ||||||||
Alibaba Health Information Technology Ltd.* | 86,000 | 33,504 | ||||||
Hotels, Restaurants & Leisure – 0.5% | ||||||||
Alsea SAB de CV | 25,300 | 89,174 | ||||||
Ambassador Hotel (The) | 24,000 | 18,574 | ||||||
AmRest Holdings SE* | 411 | 38,916 | ||||||
Bloomberry Resorts Corp.* | 100,000 | 18,013 | ||||||
Central Plaza Hotel PCL | 14,100 | 14,165 | ||||||
China Travel International Investment Hong Kong Ltd. | 172,200 | 49,816 | ||||||
DXB Entertainments PJSC* | 155,314 | 40,805 | ||||||
Emerson Pacific, Inc.* | 329 | 8,732 | ||||||
Famous Brands Ltd. | 6,157 | 68,127 | ||||||
Formosa International Hotels Corp. | 1,311 | 6,865 | ||||||
Genting Bhd. | 92,400 | 209,449 | ||||||
Genting Malaysia Bhd. | 111,300 | 150,502 | ||||||
Gourmet Master Co. Ltd. | 2,100 | 21,090 | ||||||
Grand Korea Leisure Co. Ltd. | 1,040 | 19,833 | ||||||
Haichang Ocean Park Holdings Ltd.* (b) | 134,000 | 28,773 | ||||||
Hana Tour Service, Inc. | 489 | 36,270 | ||||||
Imperial Pacific International Holdings Ltd.* | 1,250,000 | 21,697 | ||||||
Indian Hotels Co. Ltd. (The) | 22,940 | 45,769 | ||||||
Jollibee Foods Corp. | 13,430 | 56,446 |
Shares | Value | |||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Jubilant Foodworks Ltd. | 722 | $ | 11,696 | |||||
Kangwon Land, Inc. | 4,536 | 144,104 | ||||||
Magnum Bhd. | 16,900 | 8,176 | ||||||
Mahindra Holidays & Resorts India Ltd. | 4,236 | 29,645 | ||||||
Max’s Group, Inc. | 17,700 | 8,236 | ||||||
Minor International PCL, NVDR | 100,800 | 108,552 | ||||||
MK Restaurants Group PCL, NVDR | 1,500 | 2,656 | ||||||
Modetour Network, Inc. | 741 | 25,722 | ||||||
OPAP SA | 11,172 | 110,708 | ||||||
Orbis SA | 2,013 | 45,123 | ||||||
Paradise Co. Ltd. | 1,338 | 16,580 | ||||||
Premium Leisure Corp. | 289,000 | 9,023 | ||||||
Shinsegae Food Co. Ltd. | 120 | 16,399 | ||||||
Sun International Ltd.(a) | 121,560 | 662,580 | ||||||
Thomas Cook India Ltd. | 3,534 | 11,193 | ||||||
Travellers International Hotel Group, Inc. | 190,000 | 12,549 | ||||||
Tsogo Sun Holdings Ltd. | 16,629 | 31,248 | ||||||
Wowprime Corp. | 2,133 | 10,781 | ||||||
Xiabuxiabu Catering Management China Holdings Co. Ltd.(b) | 31,000 | 26,386 | ||||||
2,234,373 | ||||||||
Household Durables – 0.7% | ||||||||
AmTRAN Technology Co. Ltd. | 62,000 | 45,106 | ||||||
Arcelik A/S | 15,372 | 102,516 | ||||||
Basso Industry Corp. | 3,000 | 8,561 | ||||||
Coway Co. Ltd. | 2,268 | 200,311 | ||||||
Crompton Greaves Consumer Electricals Ltd.* | 15,571 | 53,239 | ||||||
Cuckoo Electronics Co. Ltd. | 79 | 9,060 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes* | 8,700 | 35,792 | ||||||
Haier Electronics Group Co. Ltd. | 84,000 | 195,054 | ||||||
Hanssem Co. Ltd. | 588 | 113,683 | ||||||
Hyundai Livart Furniture Co. Ltd. | 1,506 | 37,653 | ||||||
Kinpo Electronics | 1,470,000 | 550,562 | ||||||
LG Electronics, Inc. | 8,988 | 545,804 | ||||||
LG Electronics, Inc. (Preference) | 690 | 17,797 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 139 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Household Durables – (continued) | ||||||||
MRV Engenharia e Participacoes SA | 33,600 | $ | 166,592 | |||||
Nien Made Enterprise Co. Ltd. | 5,000 | 50,628 | ||||||
PIK Group PJSC* | 10,520 | 53,197 | ||||||
Skyworth Digital Holdings Ltd. | 185,750 | 107,950 | ||||||
Symphony Ltd. | 1,272 | 28,449 | ||||||
Tatung Co. Ltd.* | 168,000 | 61,529 | ||||||
TCL Multimedia Technology Holdings Ltd.* | 44,000 | 21,781 | ||||||
TTK Prestige Ltd.* | 202 | 19,692 | ||||||
Vestel Elektronik Sanayi ve Ticaret A/S* | 7,415 | 15,211 | ||||||
Videocon Industries Ltd.* | 11,388 | 18,393 | ||||||
Whirlpool of India Ltd.* | 2,289 | 43,079 | ||||||
Wuxi Little Swan Co. Ltd., Class B | 109,200 | 447,749 | ||||||
Yuxing InfoTech Investment Holdings Ltd.* | 102,000 | 16,000 | ||||||
Zeng Hsing Industrial Co. Ltd. | 4,000 | 20,086 | ||||||
2,985,474 | ||||||||
Household Products – 0.2% | ||||||||
Hindustan Unilever Ltd. | 29,392 | 427,173 | ||||||
Jyothy Laboratories Ltd. | 618 | 3,843 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A | 67,200 | 142,277 | ||||||
Unilever Indonesia Tbk. PT | 42,000 | 140,221 | ||||||
Vinda International Holdings Ltd. | 7,000 | 14,220 | ||||||
727,734 | ||||||||
Independent Power and Renewable Electricity Producers –1.7% | ||||||||
Aboitiz Power Corp. | 109,237 | 92,916 | ||||||
Adani Power Ltd.* | 12,059 | 6,186 | ||||||
AES Gener SA | 127,863 | 48,617 | ||||||
AES Tiete Energia SA (Preference) | 30 | 25 | ||||||
AES Tiete SA | 2 | 2 | ||||||
AES Tiete SA-UNIT | 5,573 | 23,381 | ||||||
Aksa Enerji Uretim A/S* | 23,830 | 20,050 | ||||||
Beijing Jingneng Clean Energy Co. Ltd., Class H | 2,352,000 | 713,685 |
Shares | Value | |||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
CGN New Energy Holdings Co. Ltd. | 1,344,000 | $ | 198,726 | |||||
CGN Power Co. Ltd., Class H(b) | 420,000 | 126,904 | ||||||
China Jinjiang Environment Holding Co. Ltd.* | 677,600 | 441,165 | ||||||
China Longyuan Power Group Corp. Ltd., Class H | 252,000 | 194,082 | ||||||
China Power International Development Ltd. | 290,000 | 108,132 | ||||||
China Power New Energy Development Co. Ltd. | 551,000 | 336,513 | ||||||
China Resources Power Holdings Co. Ltd. | 128,420 | 231,493 | ||||||
Cia Energetica de Sao Paulo (Preference), Class B | 16,800 | 94,378 | ||||||
Colbun SA | 138,415 | 30,657 | ||||||
Datang International Power Generation Co. Ltd., Class H | 3,528,000 | 1,052,383 | ||||||
Electricity Generating PCL, NVDR | 9,400 | 59,786 | ||||||
Enel Generacion Chile SA | 131,460 | 100,714 | ||||||
Energy Development Corp. | 273,600 | 33,019 | ||||||
Engie Brasil Energia SA | 9,500 | 102,104 | ||||||
First Gen Corp. | 160,039 | 68,865 | ||||||
Glow Energy PCL, NVDR | 19,000 | 45,042 | ||||||
Huadian Fuxin Energy Corp. Ltd., Class H | 3,192,000 | 738,742 | ||||||
Huadian Power International Corp. Ltd., Class H | 2,016,000 | 850,201 | ||||||
Huaneng Power International, Inc., Class H | 342,000 | 236,133 | ||||||
Huaneng Renewables Corp. Ltd., Class H | 396,000 | 138,491 | ||||||
JSW Energy Ltd. | 24,223 | 25,247 | ||||||
Lopez Holdings Corp. | 2,343,600 | 360,698 | ||||||
Malakoff Corp. Bhd. | 105,400 | 30,593 | ||||||
NHPC Ltd. | 204,708 | 101,033 | ||||||
NTPC Ltd. | 82,824 | 211,791 | ||||||
Ratchaburi Electricity Generating Holding PCL, NVDR | 21,400 | 30,934 | ||||||
Reliance Power Ltd.* | 43,613 | 33,152 |
See Accompanying Notes to the Financial Statements.
140 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
Renova Energia SA | 3,397 | $ | 6,478 | |||||
SPCG PCL, NVDR | 453,800 | 272,883 | ||||||
Superblock PCL, NVDR* | 243,200 | 10,617 | ||||||
7,175,818 | ||||||||
Industrial Conglomerates – 1.7% | ||||||||
Aamal Co. | 2,724 | 9,920 | ||||||
Aboitiz Equity Ventures, Inc. | 83,470 | 128,300 | ||||||
Aditya Birla Nuvo Ltd. | 2,344 | 60,486 | ||||||
Alfa SAB de CV, Class A | 134,400 | 183,211 | ||||||
Alliance Global Group, Inc. | 95,100 | 28,169 | ||||||
ALUKO Co. Ltd. | 46,956 | 179,917 | ||||||
AntarChile SA | 11,088 | 136,354 | ||||||
Beijing Enterprises Holdings Ltd. | 44,000 | 214,978 | ||||||
Berli Jucker PCL | 500 | 629 | ||||||
Berli Jucker PCL, NVDR | 49,900 | 62,754 | ||||||
Bidvest Group Ltd. (The) | 10,970 | 130,742 | ||||||
Boustead Holdings Bhd. | 78,120 | 47,149 | ||||||
CITIC Ltd. | 588,000 | 852,793 | ||||||
CJ Corp. | 588 | 96,631 | ||||||
DMCI Holdings, Inc. | 117,300 | 30,191 | ||||||
Dogan Sirketler Grubu Holding A/S* | 43,291 | 9,014 | ||||||
Doosan Corp. | 1,119 | 95,684 | ||||||
Enka Insaat ve Sanayi A/S | 59,430 | 91,308 | ||||||
Far Eastern New Century Corp. | 336,000 | 282,868 | ||||||
Fosun International Ltd.(a) | 210,000 | 318,069 | ||||||
Grupo Carso SAB de CV, Series A1 | 16,800 | 76,600 | ||||||
Grupo Industrial Saltillo SAB de CV | 7,300 | 14,536 | ||||||
Grupo KUO SAB de CV, Series B | 14,400 | 29,513 | ||||||
Hanwha Corp. | 3,730 | 130,955 | ||||||
HAP Seng Consolidated Bhd. | 12,800 | 26,154 | ||||||
Harim Holdings Co. Ltd. | 37,762 | 132,909 | ||||||
Hosken Consolidated Investments Ltd. | 61,152 | 632,732 | ||||||
Industries Qatar QSC | 6,324 | 181,142 | ||||||
JG Summit Holdings, Inc. | 134,620 | 226,859 | ||||||
KAP Industrial Holdings Ltd. | 19,548 | 13,686 |
Shares | Value | |||||||
Industrial Conglomerates – (continued) | ||||||||
KOC Holding A/S | 43,428 | $ | 204,079 | |||||
Kolon Corp. | 7,812 | 429,080 | ||||||
LG Corp. | 11,172 | 663,703 | ||||||
LT Group, Inc. | 54,200 | 17,313 | ||||||
MMC Corp. Bhd. | 34,200 | 19,932 | ||||||
Mytilineos Holdings SA* | 6,072 | 45,690 | ||||||
Quinenco SA | 44,102 | 119,811 | ||||||
Reunert Ltd. | 5,407 | 28,643 | ||||||
Samsung C&T Corp. | 3,780 | 410,256 | ||||||
San Miguel Corp. | 43,680 | 96,163 | ||||||
Shanghai Industrial Holdings Ltd. | 36,000 | 113,866 | ||||||
Siemens Ltd. | 1,779 | 36,295 | ||||||
Sigdo Koppers SA | 23,951 | 34,374 | ||||||
Sime Darby Bhd. | 111,478 | 239,597 | ||||||
SK Holdings Co. Ltd. | 1,562 | 332,881 | ||||||
SM Investments Corp. | 18,480 | 269,257 | ||||||
Turkiye Sise ve Cam Fabrikalari A/S | 31,664 | 39,739 | ||||||
Yazicilar Holding A/S, Class A | 4,309 | 27,888 | ||||||
7,552,820 | ||||||||
Insurance – 2.8% | ||||||||
Allianz Malaysia Bhd. | 58,800 | 155,500 | ||||||
Anadolu Hayat Emeklilik A/S | 10,968 | 16,697 | ||||||
Bajaj Finserv Ltd.* | 1,281 | 91,115 | ||||||
Bangkok Life Assurance PCL, NVDR | 13,540 | 18,887 | ||||||
BB Seguridade Participacoes SA | 29,300 | 272,959 | ||||||
Cathay Financial Holding Co. Ltd. | 756,000 | 1,212,767 | ||||||
China Life Insurance Co. Ltd. | 336,000 | 312,936 | ||||||
China Life Insurance Co. Ltd., Class H | 298,000 | 906,159 | ||||||
China Pacific Insurance Group Co. Ltd., Class H | 117,600 | 434,713 | ||||||
China Reinsurance Group Corp., Class H | 504,000 | 115,995 | ||||||
China Taiping Insurance Holdings Co. Ltd.* | 117,600 | 293,337 | ||||||
Discovery Ltd.(a) | 16,212 | 162,075 | ||||||
Dongbu Insurance Co. Ltd. | 4,620 | 276,088 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 141 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Hanwha General Insurance Co. Ltd. | 50,064 | $ | 326,017 | |||||
Hanwha Life Insurance Co. Ltd. | 25,489 | 137,760 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 4,969 | 160,262 | ||||||
KB Insurance Co. Ltd. | 3,386 | 97,304 | ||||||
Korean Reinsurance Co. | 12,684 | 125,959 | ||||||
Liberty Holdings Ltd. | 7,423 | 59,622 | ||||||
LPI Capital Bhd. | 12,306 | 49,723 | ||||||
Max Financial Services Ltd. | 2,832 | 28,875 | ||||||
Mercuries & Associates Holding Ltd. | 475,500 | 379,820 | ||||||
Mercuries Life Insurance Co. Ltd.* | 35,000 | 17,923 | ||||||
Meritz Fire & Marine Insurance Co. Ltd. | 1,700 | 26,443 | ||||||
Mirae Asset Life Insurance Co. Ltd. | 85,932 | 422,146 | ||||||
MMI Holdings Ltd.(a) | 80,487 | 140,181 | ||||||
New China Life Insurance Co. Ltd., Class H | 67,200 | 332,218 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H | 672,000 | 277,352 | ||||||
PICC Property & Casualty Co. Ltd., Class H | 393,634 | 633,657 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 440,000 | 2,477,901 | ||||||
Porto Seguro SA* | 3,700 | 33,232 | ||||||
Powszechny Zaklad Ubezpieczen SA | 28,056 | 309,388 | ||||||
Qatar Insurance Co. SAQ | 6,320 | 123,231 | ||||||
Rand Merchant Investment Holdings Ltd. | 42,756 | 134,014 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 1,680 | 395,676 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. (Preference) | 108 | 17,037 | ||||||
Samsung Life Insurance Co. Ltd. | 3,612 | 347,582 | ||||||
Sanlam Ltd. | 70,812 | 375,071 | ||||||
Santam Ltd. | 665 | 12,290 | ||||||
Shin Kong Financial Holding Co. Ltd. | 840,000 | 224,122 |
Shares | Value | |||||||
Insurance – (continued) | ||||||||
Sul America SA | 23,143 | $ | 122,849 | |||||
Syarikat Takaful Malaysia Bhd. | 19,900 | 18,337 | ||||||
Tongyang Life Insurance Co. Ltd. | 1,754 | 15,491 | ||||||
12,090,711 | ||||||||
Internet & Direct Marketing Retail – 0.0%(d) | ||||||||
B2W Cia Digital* | 5,926 | 24,788 | ||||||
B2W Cia Digital* | 1,903 | 7,811 | ||||||
CJ O Shopping Co. Ltd. | 279 | 46,855 | ||||||
Cogobuy Group* (b) | 10,000 | 14,400 | ||||||
GS Home Shopping, Inc. | 85 | 15,201 | ||||||
Hyundai Home Shopping Network Corp. | 35 | 3,753 | ||||||
Interpark Corp. | 1,402 | 13,245 | ||||||
Interpark Holdings Corp. | 1,875 | 8,849 | ||||||
NS Shopping Co. Ltd.(c) | 69 | 10,308 | ||||||
145,210 | ||||||||
Internet Software & Services – 1.9% | ||||||||
Addcn Technology Co. Ltd. | 1,341 | 10,023 | ||||||
Ahnlab, Inc. | 620 | 39,503 | ||||||
Daou Technology, Inc. | 2,046 | 37,309 | ||||||
HC International, Inc.* | 40,000 | 35,384 | ||||||
Info Edge India Ltd. | 1,000 | 12,988 | ||||||
Kakao Corp. | 1,344 | 106,774 | ||||||
NAVER Corp. | 1,176 | 826,786 | ||||||
PChome Online, Inc. | 5,427 | 46,408 | ||||||
SINA Corp.* | 2,200 | 168,982 | ||||||
Sohu.com, Inc.* (a) | 1,700 | 65,960 | ||||||
Tencent Holdings Ltd. | 222,100 | 6,950,664 | ||||||
Tian Ge Interactive Holdings Ltd.* (b) | 48,000 | 34,993 | ||||||
8,335,774 | ||||||||
IT Services – 0.8% | ||||||||
Chinasoft International Ltd.* | 118,000 | 71,004 | ||||||
Cielo SA | 50,400 | 379,717 | ||||||
eClerx Services Ltd. | 1,429 | 28,883 | ||||||
EOH Holdings Ltd. | 3,031 | 32,034 | ||||||
HCL Technologies Ltd. | 25,368 | 321,034 | ||||||
Hexaware Technologies Ltd. | 12,753 | 45,804 | ||||||
HNA Holding Group Co. Ltd.* | 310,000 | 10,961 |
See Accompanying Notes to the Financial Statements.
142 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
Infosys Ltd. | 80,808 | $ | 1,154,337 | |||||
Kginicis Co. Ltd. | 1,317 | 13,252 | ||||||
Mindtree Ltd. | 1,955 | 14,748 | ||||||
Mphasis Ltd. | 1,440 | 12,004 | ||||||
My EG Services Bhd. | 13,800 | 6,771 | ||||||
Nan Hai Corp. Ltd.* | 600,000 | 20,444 | ||||||
NHN KCP Corp.* | 970 | 11,551 | ||||||
Persistent Systems Ltd. | 4,942 | 44,995 | ||||||
Posco ICT Co. Ltd. | 4,677 | 28,196 | ||||||
Samsung SDS Co. Ltd. | 1,764 | 213,156 | ||||||
SONDA SA | 7,485 | 12,773 | ||||||
Systex Corp. | 16,000 | 32,137 | ||||||
Tata Consultancy Services Ltd. | 18,648 | 658,941 | ||||||
Tech Mahindra Ltd. | 20,328 | 131,754 | ||||||
TravelSky Technology Ltd., Class H | 31,000 | 81,710 | ||||||
Vakrangee Ltd. | 11,745 | 62,468 | ||||||
Wipro Ltd. | 28,560 | 219,428 | ||||||
3,608,102 | ||||||||
Leisure Products – 0.1% | ||||||||
Giant Manufacturing Co. Ltd. | 11,000 | 66,537 | ||||||
Goodbaby International Holdings Ltd. | 48,000 | 21,786 | ||||||
HLB, Inc.* | 2,583 | 31,326 | ||||||
Johnson Health Tech Co. Ltd. | 9,090 | 12,654 | ||||||
KMC Kuei Meng International, Inc. | 2,158 | 10,443 | ||||||
Merida Industry Co. Ltd. | 7,350 | 39,465 | ||||||
Topkey Corp. | 9,192 | 33,208 | ||||||
215,419 | ||||||||
Life Sciences Tools & Services – 0.0%(d) | ||||||||
Divi’s Laboratories Ltd.* | 4,963 | 48,480 | ||||||
Machinery – 1.1% | ||||||||
AIA Engineering Ltd. | 1,599 | 37,458 | ||||||
Airtac International Group | 6,494 | 74,258 | ||||||
Ashok Leyland Ltd. | 75,432 | 100,138 | ||||||
BEML Ltd. | 768 | 16,748 | ||||||
China Conch Venture Holdings Ltd. | 84,000 | 167,405 |
Shares | Value | |||||||
Machinery – (continued) | ||||||||
China International Marine Containers Group Co. Ltd., Class H | 60,492 | $ | 104,222 | |||||
CIMC Enric Holdings Ltd. | 686,000 | 400,440 | ||||||
CRRC Corp. Ltd., Class H(a) | 168,000 | 163,949 | ||||||
CSBC Corp. Taiwan | 24,000 | 11,176 | ||||||
CSSC Offshore and Marine Engineering Group Co. Ltd., Class H | 336,000 | 670,484 | ||||||
Cummins India Ltd. | 2,089 | 32,376 | ||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd.* (c) | 502 | 19,764 | ||||||
Doosan Infracore Co. Ltd.* | 11,424 | 94,773 | ||||||
Eicher Motors Ltd.* | 588 | 238,271 | ||||||
Escorts Ltd. | 1,997 | 16,996 | ||||||
Haitian International Holdings Ltd. | 30,000 | 73,519 | ||||||
Hanjin Heavy Industries & Construction Co. Ltd.* | 76,875 | 228,348 | ||||||
Hiwin Technologies Corp. | 9,772 | 62,348 | ||||||
Hy-Lok Corp. | 601 | 11,831 | ||||||
Hyundai Elevator Co. Ltd. | 547 | 29,948 | ||||||
Hyundai Heavy Industries Co. Ltd.* (c) | 1,968 | 285,368 | ||||||
Hyundai Mipo Dockyard Co. Ltd.* | 864 | 70,311 | ||||||
Hyundai Rotem Co. Ltd.* | 1,857 | 34,189 | ||||||
King Slide Works Co. Ltd. | 3,000 | 46,187 | ||||||
Kinik Co. | 18,000 | 41,941 | ||||||
Lakshmi Machine Works Ltd. | 148 | 10,735 | ||||||
Lonking Holdings Ltd. | 186,000 | 51,895 | ||||||
Marcopolo SA (Preference)* | 14,700 | 10,983 | ||||||
Otokar Otomotiv Ve Savunma Sanayi A.S. | 706 | 26,363 | ||||||
Rechi Precision Co. Ltd. | 273,969 | 296,934 | ||||||
Samsung Heavy Industries Co. Ltd.* | 12,311 | 116,846 | ||||||
San Shing Fastech Corp. | 4,400 | 7,846 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd.* | 164,000 | 32,051 | ||||||
Shanghai Mechanical and Electrical Industry Co. Ltd., Class B | 259,229 | 548,529 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 143 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Shanghai Zhenhua Heavy Industries Co. Ltd., Class B* | 93,000 | $ | 48,453 | |||||
Shin Zu Shing Co. Ltd. | 1,000 | 2,774 | ||||||
Sinotruk Hong Kong Ltd.(a) | 11,000 | 7,651 | ||||||
SKF India Ltd. | 1,144 | 30,346 | ||||||
Syncmold Enterprise Corp. | 168,000 | 372,517 | ||||||
Thermax Ltd. | 2,214 | 35,500 | ||||||
Turk Traktor ve Ziraat Makineleri A/S | 923 | 20,246 | ||||||
WEG SA | 33,600 | 185,710 | ||||||
Weichai Power Co. Ltd., Class H(a) | 32,000 | 51,924 | ||||||
Yungtay Engineering Co. Ltd. | 16,000 | 26,516 | ||||||
4,916,267 | ||||||||
Marine – 1.0% | ||||||||
Cia Sud Americana de Vapores SA* | 13,707,456 | 537,975 | ||||||
COSCO SHIPPING Energy Transportation Co. Ltd., Class H | 1,512,000 | 826,224 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class H* | 3,108,000 | 1,358,680 | ||||||
Evergreen Marine Corp. Taiwan Ltd.* | 168,000 | 74,058 | ||||||
Grindrod Ltd.* (a) | 19,248 | 17,287 | ||||||
Hyundai Merchant Marine Co. Ltd.* | 4,830 | 36,716 | ||||||
Korea Line Corp.* | 16,548 | 351,203 | ||||||
MISC Bhd. | 50,400 | 85,103 | ||||||
Pan Ocean Co. Ltd.* | 5,569 | 25,498 | ||||||
Qatar Navigation QSC | 4,872 | 94,328 | ||||||
Sincere Navigation Corp. | 33,000 | 22,969 | ||||||
Sinotrans Shipping Ltd.* | 1,554,000 | 349,660 | ||||||
Thoresen Thai Agencies PCL, NVDR* | 46,419 | 12,279 | ||||||
U-Ming Marine Transport Corp. | 33,000 | 33,415 | ||||||
Wan Hai Lines Ltd. | 32,000 | 17,712 | ||||||
Wisdom Marine Lines Co. Ltd.* | 420,000 | 452,421 | ||||||
Yang Ming Marine Transport Corp.* (c) | 33,644 | 6,858 | ||||||
4,302,386 |
Shares | Value | |||||||
Media – 1.4% | ||||||||
Alibaba Pictures Group Ltd.* (a) | 350,000 | $ | 56,702 | |||||
Astro Malaysia Holdings Bhd. | 55,200 | 34,333 | ||||||
BEC World PCL, NVDR | 28,400 | 15,354 | ||||||
Cheil Worldwide, Inc. | 1,603 | 25,991 | ||||||
CJ CGV Co. Ltd. | 240 | 18,033 | ||||||
CJ E&M Corp. | 691 | 48,884 | ||||||
Cyfrowy Polsat SA* | 13,692 | 85,690 | ||||||
Dish TV India Ltd.* | 17,517 | 25,896 | ||||||
Global Mediacom Tbk. PT | 7,560,000 | 303,444 | ||||||
Grupo Televisa SAB | 100,800 | 485,098 | ||||||
Hyundai Hy Communications & Network Co. Ltd. | 64,335 | 221,065 | ||||||
IHQ, Inc.* | 5,251 | 8,099 | ||||||
IMAX China Holding, Inc.* (b) | 1,900 | 8,941 | ||||||
Innocean Worldwide, Inc. | 410 | 23,024 | ||||||
KT Skylife Co. Ltd. | 2,187 | 31,136 | ||||||
Loen Entertainment, Inc. | 236 | 18,230 | ||||||
Major Cineplex Group PCL, NVDR | 25,300 | 25,600 | ||||||
Media Nusantara Citra Tbk. PT | 246,500 | 33,751 | ||||||
Megacable Holdings SAB de CV | 6,900 | 25,974 | ||||||
MNC Investama Tbk. PT* | 24,082,800 | 216,816 | ||||||
Multiplus SA | 3,500 | 42,727 | ||||||
Naspers Ltd., Class N(a) | 17,919 | 3,398,769 | ||||||
Network 18 Media & Investments Ltd.* | 27,440 | 21,029 | ||||||
Phoenix Satellite Television Holdings Ltd. | 20,000 | 3,420 | ||||||
Plan B Media PCL, NVDR | 68,200 | 10,548 | ||||||
PVR Ltd. | 2,583 | 64,770 | ||||||
SBS Media Holdings Co. Ltd. | 8,899 | 22,367 | ||||||
SHOWBOX Corp. | 1,985 | 9,559 | ||||||
SM Entertainment Co.* | 143 | 3,248 | ||||||
SMI Holdings Group Ltd. | 256,014 | 22,384 | ||||||
Smiles SA | 3,400 | 73,754 | ||||||
Star Media Group Bhd. | 20,000 | 10,827 | ||||||
Sun TV Network Ltd. | 3,716 | 53,244 | ||||||
Surya Citra Media Tbk. PT | 127,049 | 27,261 | ||||||
TV18 Broadcast Ltd.* | 39,466 | 25,644 | ||||||
VGI Global Media PCL, NVDR | 70,796 | 10,111 | ||||||
Wisdom Sports Group* | 71,000 | 14,789 |
See Accompanying Notes to the Financial Statements.
144 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Woongjin Thinkbig Co. Ltd.* | 31,164 | $ | 242,104 | |||||
YG Entertainment, Inc. | 947 | 25,133 | ||||||
Zee Entertainment Enterprises Ltd. | 22,260 | 182,305 | ||||||
5,976,054 | ||||||||
Metals & Mining – 3.5% | ||||||||
African Rainbow Minerals Ltd. | 5,764 | 36,392 | ||||||
Alrosa PJSC | 103,236 | 177,714 | ||||||
Aluminum Corp. of China Ltd., Class H* | 224,000 | 110,307 | ||||||
Aneka Tambang Persero Tbk. PT* | 522,310 | 27,234 | ||||||
Anglo American Platinum Ltd.* | 1,650 | 40,691 | ||||||
AngloGold Ashanti Ltd. | 18,732 | 211,607 | ||||||
Assore Ltd. | 1,776 | 28,630 | ||||||
Bradespar SA (Preference) | 6,900 | 42,494 | ||||||
CAP SA | 88,872 | 928,991 | ||||||
China Hongqiao Group Ltd.(a) (c) | 118,500 | 107,415 | ||||||
China Metal Products | 336,000 | 329,084 | ||||||
China Metal Recycling Holdings Ltd.* (c) | 51,000 | — | ||||||
China Molybdenum Co. Ltd., Class H | 172,200 | 52,473 | ||||||
China Steel Corp. | 504,000 | 404,256 | ||||||
China Zhongwang Holdings Ltd.(a) | 53,200 | 24,146 | ||||||
Chung Hung Steel Corp.* | 1,028,000 | 308,696 | ||||||
Cia Minera Milpo SAA* | 41,416 | 51,698 | ||||||
Cia Siderurgica Nacional SA* | 54,300 | 130,708 | ||||||
Dongkuk Steel Mill Co. Ltd. | 8,258 | 80,555 | ||||||
Eregli Demir ve Celik Fabrikalari TAS | 150,562 | 275,810 | ||||||
Ezz Steel* | 17,574 | 18,908 | ||||||
Feng Hsin Steel Co. Ltd. | 26,000 | 43,949 | ||||||
Gerdau SA | 12,700 | 38,154 | ||||||
Gerdau SA (Preference) | 30,782 | 94,209 | ||||||
Gloria Material Technology Corp. | 588,000 | 382,957 | ||||||
Gold Fields Ltd.(a) | 63,359 | 207,114 | ||||||
Grupa Kety SA | 245 | 26,923 |
Shares | Value | |||||||
Metals & Mining – (continued) | ||||||||
Grupo Mexico SAB de CV, Series B | 142,800 | $ | 416,637 | |||||
Harmony Gold Mining Co. Ltd. | 29,953 | 64,858 | ||||||
Hindalco Industries Ltd. | 78,938 | 244,618 | ||||||
Honbridge Holdings Ltd.* | 112,000 | 12,528 | ||||||
Hyundai Steel Co. | 7,152 | 345,061 | ||||||
Impala Platinum Holdings Ltd.* (a) | 26,600 | 85,362 | ||||||
Industrias Penoles SAB de CV | 3,780 | 91,255 | ||||||
Jastrzebska Spolka Weglowa SA* | 1,794 | 36,192 | ||||||
Jenax, Inc.* | 705 | 14,869 | ||||||
Jiangxi Copper Co. Ltd., Class H | 39,000 | 60,875 | ||||||
Jindal Steel & Power Ltd.* | 417,168 | 739,269 | ||||||
JSW Steel Ltd. | 37,800 | 116,931 | ||||||
KGHM Polska Miedz SA | 5,880 | 186,496 | ||||||
KISCO Corp. | 4,704 | 155,022 | ||||||
KISWIRE Ltd. | 7,896 | 262,298 | ||||||
Korea Zinc Co. Ltd. | 504 | 188,463 | ||||||
Koza Altin Isletmeleri A/S* | 3,880 | 21,083 | ||||||
Krakatau Steel Persero Tbk. PT* | 4,624,433 | 201,228 | ||||||
Kumba Iron Ore Ltd.* | 2,276 | 29,600 | ||||||
Magnitogorsk Iron & Steel OJSC | 99,029 | 58,912 | ||||||
Mechel PJSC* | 227,724 | 710,305 | ||||||
Mechel PJSC (Preference) | 102,358 | 209,769 | ||||||
Metalurgica Gerdau SA (Preference)* | 50,400 | 72,005 | ||||||
Minera Frisco SAB de CV, Class A1* | 30,500 | 19,270 | ||||||
MMC Norilsk Nickel PJSC | 1,935 | 296,973 | ||||||
MMC Norilsk Nickel PJSC, ADR | 8,400 | 129,234 | ||||||
MMG Ltd.* | 132,000 | 45,145 | ||||||
MOIL Ltd. | 5,400 | 26,463 | ||||||
National Aluminium Co. Ltd. | 27,956 | 29,899 | ||||||
Nickel Asia Corp. | 101,064 | 12,642 | ||||||
NMDC Ltd. | 18,561 | 36,787 | ||||||
Northam Platinum Ltd.* | 11,624 | 43,165 | ||||||
Novolipetsk Steel PJSC | 71,904 | 135,940 | ||||||
Philex Mining Corp. | 66,900 | 11,809 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 145 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Poongsan Corp. | 2,520 | $ | 86,480 | |||||
Poongsan Holdings Corp. | 4,452 | 186,625 | ||||||
POSCO | 6,972 | 1,638,993 | ||||||
Press Metal Bhd. | 84,960 | 57,345 | ||||||
Seah Besteel Corp. | 761 | 18,659 | ||||||
SeAH Steel Corp. | 4,368 | 372,733 | ||||||
Severstal PJSC | 12,399 | 168,821 | ||||||
Severstal PJSC, GDR | 2,805 | 38,372 | ||||||
Shougang Fushan Resources Group Ltd. | 138,000 | 25,373 | ||||||
Sibanye Gold Ltd.(a) | 29,271 | 59,160 | ||||||
Stalprodukt SA | 1,932 | 268,754 | ||||||
Steel Authority of India Ltd.* | 35,722 | 33,512 | ||||||
TA Chen Stainless Pipe | 63,860 | 35,136 | ||||||
Tata Steel Ltd. | 9,781 | 68,306 | ||||||
Ton Yi Industrial Corp. | 46,000 | 22,260 | ||||||
Tung Ho Steel Enterprise Corp. | 32,000 | 25,826 | ||||||
Usinas Siderurgicas de Minas Gerais SA* | 6,900 | 18,939 | ||||||
Usinas Siderurgicas de Minas Gerais SA (Preference), Class A* | 14,700 | 19,577 | ||||||
Vale Indonesia Tbk. PT* | 129,900 | 21,635 | ||||||
Vale SA* | 50,400 | 429,191 | ||||||
Vale SA (Preference)* | 84,000 | 687,483 | ||||||
Vedanta Ltd. | 95,004 | 359,680 | ||||||
Volcan Cia Minera SAA, Class B | 2,974,356 | 788,395 | ||||||
Yeong Guan Energy Technology Group Co. Ltd. | 102,425 | 310,626 | ||||||
Yieh Phui Enterprise Co. Ltd.* | 188,702 | 77,242 | ||||||
Young Poong Corp. | 84 | 69,612 | ||||||
Zhaojin Mining Industry Co. Ltd., Class H | 47,000 | 40,851 | ||||||
Zijin Mining Group Co. Ltd., Class H | 338,000 | 119,511 | ||||||
15,341,175 | ||||||||
Multiline Retail – 0.6% | ||||||||
Aeon Co. M Bhd. | 10,800 | 6,170 | ||||||
El Puerto de Liverpool SAB de CV, Class C1 | 9,950 | 76,144 |
Shares | Value | |||||||
Multiline Retail – (continued) | ||||||||
Far Eastern Department Stores Ltd. | 57,012 | $ | 30,139 | |||||
Future Retail Ltd.* | 3,948 | 19,191 | ||||||
Golden Eagle Retail Group Ltd. | 14,000 | 21,313 | ||||||
Gwangju Shinsegae Co. Ltd. | 578 | 130,290 | ||||||
Hyundai Department Store Co. Ltd. | 1,428 | 135,534 | ||||||
Intime Retail Group Co. Ltd. | 96,000 | 121,581 | ||||||
Lojas Americanas SA* | 5,250 | 22,452 | ||||||
Lojas Americanas SA (Preference)* | 33,600 | 175,941 | ||||||
Lojas Renner SA | 25,200 | 232,400 | ||||||
Lotte Shopping Co. Ltd. | 697 | 160,790 | ||||||
Matahari Department Store Tbk. PT | 120,100 | 131,552 | ||||||
Poya International Co. Ltd. | 4,120 | 56,261 | ||||||
Ripley Corp. SA | 1,076,796 | 783,513 | ||||||
Robinson Department Store PCL, NVDR* | 16,300 | 29,452 | ||||||
SACI Falabella | 46,620 | 373,118 | ||||||
Shinsegae, Inc. | 588 | 105,674 | ||||||
Taiwan FamilyMart Co. Ltd. | 2,000 | 13,622 | ||||||
Woolworths Holdings Ltd.(a) | 33,520 | 181,578 | ||||||
2,806,715 | ||||||||
Multi-Utilities – 0.1% | ||||||||
Qatar Electricity & Water Co. QSC | 1,359 | 77,629 | ||||||
Tianjin Development Holdings Ltd. | 486,000 | 305,564 | ||||||
YTL Corp. Bhd. | 302,400 | 102,402 | ||||||
YTL Power International Bhd. | 379,460 | 131,994 | ||||||
617,589 | ||||||||
Oil, Gas & Consumable Fuels – 5.6% | ||||||||
Adaro Energy Tbk. PT | 663,600 | 88,370 | ||||||
Bangchak Corp. PCL, NVDR | 10,400 | 9,621 | ||||||
Banpu PCL, NVDR | 34,300 | 19,039 | ||||||
Bashneft PJSC | 2,728 | 151,877 | ||||||
Bashneft PJSC (Preference) | 2,856 | 63,140 | ||||||
Bharat Petroleum Corp. Ltd. | 19,824 | 221,645 | ||||||
Cairn India Ltd.(c) | 17,353 | 72,199 | ||||||
Chennai Petroleum Corp. Ltd. | 43,260 | 256,177 |
See Accompanying Notes to the Financial Statements.
146 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
China Coal Energy Co. Ltd., Class H | 168,000 | $ | 81,650 | |||||
China Petroleum & Chemical Corp., Class H | 1,008,000 | 816,504 | ||||||
China Shenhua Energy Co. Ltd., Class H | 294,000 | 685,712 | ||||||
CNOOC Ltd. | 672,000 | 783,671 | ||||||
Coal India Ltd. | 57,372 | 246,727 | ||||||
Cosan SA Industria e Comercio | 8,400 | 96,820 | ||||||
Dana Gas PJSC* | 410,879 | 49,220 | ||||||
Ecopetrol SA | 406,560 | 187,244 | ||||||
Empresas COPEC SA | 22,260 | 249,208 | ||||||
Energy Absolute PCL, NVDR | 96,900 | 75,637 | ||||||
Esso Thailand PCL, NVDR* | 1,395,900 | 472,160 | ||||||
Exxaro Resources Ltd. | 14,012 | 119,226 | ||||||
Formosa Petrochemical Corp. | 84,000 | 293,726 | ||||||
Gazprom PJSC | 913,122 | 2,190,955 | ||||||
Gazprom PJSC, ADR | 73,857 | 350,821 | ||||||
Great Eastern Shipping Co. Ltd. (The) | 59,563 | 407,302 | ||||||
Grupa Lotos SA* | 6,385 | 99,513 | ||||||
GS Holdings Corp. | 4,368 | 227,632 | ||||||
Hankook Shell Oil Co. Ltd. | 56 | 19,833 | ||||||
Hellenic Petroleum SA | 6,163 | 35,502 | ||||||
Hindustan Petroleum Corp. Ltd. | 36,990 | 308,288 | ||||||
Indian Oil Corp. Ltd. | 39,480 | 270,063 | ||||||
Indo Tambangraya Megah Tbk. PT | 411,600 | 590,581 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B | 34,500 | 37,122 | ||||||
IRPC PCL, NVDR | 788,200 | 127,607 | ||||||
Kunlun Energy Co. Ltd.(a) | 336,000 | 303,705 | ||||||
Lubelski Wegiel Bogdanka SA* | 588 | 10,990 | ||||||
LUKOIL PJSC | 37,800 | 1,869,004 | ||||||
Mangalore Refinery & Petrochemicals Ltd.* | 8,266 | 17,167 | ||||||
MOL Hungarian Oil & Gas plc | 5,208 | 392,346 | ||||||
Motor Oil Hellas Corinth Refineries SA | 5,964 | 101,119 | ||||||
Novatek PJSC | 27,300 | 333,100 | ||||||
Oil & Natural Gas Corp. Ltd. | 110,880 | 321,540 |
Shares | Value | |||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Oil India Ltd. | 15,252 | $ | 77,564 | |||||
PetroChina Co. Ltd., Class H | 840,000 | 591,857 | ||||||
Petroleo Brasileiro SA* | 126,000 | 564,455 | ||||||
Petroleo Brasileiro SA (Preference)* | 168,000 | 729,499 | ||||||
Petron Corp. | 140,600 | 25,635 | ||||||
Petronas Dagangan Bhd. | 8,500 | 47,111 | ||||||
Petronet LNG Ltd. | 15,288 | 100,704 | ||||||
Polski Koncern Naftowy ORLEN SA | 25,731 | 769,039 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 155,484 | 265,203 | ||||||
PTT Exploration & Production PCL | 469 | 1,319 | ||||||
PTT Exploration & Production PCL, NVDR | 66,731 | 187,615 | ||||||
PTT PCL, NVDR | 75,600 | 850,199 | ||||||
Qatar Fuel QSC | 1,013 | 35,609 | ||||||
Qatar Gas Transport Co. Ltd. | 6,510 | 35,578 | ||||||
Reliance Industries Ltd.* | 64,596 | 1,400,969 | ||||||
Rosneft Oil Co. PJSC | 98,850 | 550,244 | ||||||
Rosneft Oil Co. PJSC, GDR | 3,546 | 19,627 | ||||||
Semirara Mining & Power Corp. | 12,450 | 37,127 | ||||||
Sinopec Kantons Holdings Ltd. | 1,176,000 | 600,282 | ||||||
SK Gas Ltd. | 525 | 54,212 | ||||||
SK Innovation Co. Ltd. | 5,376 | 807,888 | ||||||
S-Oil Corp. | 3,528 | 309,115 | ||||||
S-Oil Corp. (Preference) | 305 | 21,711 | ||||||
Star Petroleum Refining PCL, NVDR | 131,100 | 50,030 | ||||||
Sugih Energy Tbk. PT* (c) | 1,624,400 | 13,893 | ||||||
Surgutneftegas OJSC | 661,026 | 323,710 | ||||||
Surgutneftegas OJSC, ADR | 17,091 | 83,678 | ||||||
Surgutneftegas OJSC (Preference) | 514,762 | 275,521 | ||||||
Surgutneftegas OJSC (Preference), ADR | 12,172 | 65,485 | ||||||
Tambang Batubara Bukit Asam Persero Tbk. PT* | 19,000 | 18,068 | ||||||
Tatneft PJSC | 95,196 | 629,705 | ||||||
Tatneft PJSC, ADR | 6,184 | 242,042 | ||||||
Tatneft PJSC (Preference) | 9,729 | 40,645 | ||||||
Thai Oil PCL, NVDR | 75,600 | 170,477 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 147 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Transneft PJSC (Preference) | 129 | $ | 436,163 | |||||
Tupras Turkiye Petrol Rafinerileri A/S | 10,584 | 266,555 | ||||||
Ultrapar Participacoes SA | 17,900 | 396,746 | ||||||
United Tractors Tbk. PT | 58,800 | 118,668 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H | 32,000 | 27,690 | ||||||
24,295,401 | ||||||||
Paper & Forest Products – 0.9% | ||||||||
Chung Hwa Pulp Corp. | 84,171 | 28,037 | ||||||
Dongwha Enterprise Co. Ltd. | 4,368 | 124,756 | ||||||
Duratex SA | 17,374 | 48,503 | ||||||
Empresas CMPC SA | 63,093 | 147,333 | ||||||
Fibria Celulose SA* | 8,400 | 76,679 | ||||||
Green River Holding Co. Ltd. | 2,000 | 11,468 | ||||||
Hansol Holdings Co. Ltd.* | 39,984 | 222,778 | ||||||
Hansol Paper Co. Ltd. | 18,188 | 302,094 | ||||||
Lee & Man Paper Manufacturing Ltd. | 168,000 | 131,764 | ||||||
Long Chen Paper Co. Ltd. | 731,727 | 659,672 | ||||||
Masisa SA | 3,148,236 | 204,435 | ||||||
Mondi Ltd. | 5,712 | 147,980 | ||||||
Nine Dragons Paper Holdings Ltd. | 137,000 | 147,964 | ||||||
Sappi Ltd.(a) | 37,548 | 278,585 | ||||||
Shandong Chenming Paper Holdings Ltd., Class B | 579,600 | 666,228 | ||||||
Shandong Chenming Paper Holdings Ltd., Class H | 306,000 | 352,129 | ||||||
Suzano Papel e Celulose SA (Preference), Class A* | 42,000 | 175,022 | ||||||
YFY, Inc. | 69,000 | 24,471 | ||||||
3,749,898 | ||||||||
Personal Products – 0.4% | ||||||||
Able C&C Co. Ltd. | 536 | 13,778 | ||||||
Amorepacific Corp. | 1,428 | 366,444 | ||||||
Amorepacific Corp. (Preference) | 420 | 70,129 | ||||||
AMOREPACIFIC Group | 1,260 | 145,610 | ||||||
AMOREPACIFIC Group (Preference) | 558 | 29,570 |
Shares | Value | |||||||
Personal Products – (continued) | ||||||||
Bajaj Corp. Ltd. | 4,145 | $ | 25,332 | |||||
Chlitina Holding Ltd. | 1,000 | 4,806 | ||||||
Colgate-Palmolive India Ltd. | 1,572 | 25,310 | ||||||
Cosmax BTI, Inc. | 48 | 1,481 | ||||||
Cosmax, Inc. | 236 | 29,451 | ||||||
Dabur India Ltd. | 19,488 | 86,868 | ||||||
Emami Ltd. | 1,351 | 22,216 | ||||||
Gillette India Ltd. | 152 | 10,219 | ||||||
Godrej Consumer Products Ltd. | 5,040 | 136,542 | ||||||
Grape King Bio Ltd. | 3,000 | 19,290 | ||||||
Hengan International Group Co. Ltd.(a) | 30,012 | 224,582 | ||||||
It’s Skin Co. Ltd. | 496 | 19,833 | ||||||
Karex Bhd. | 34,950 | 16,907 | ||||||
Korea Kolmar Co. Ltd. | 557 | 39,307 | ||||||
Korea Kolmar Holdings Co. Ltd. | 443 | 12,847 | ||||||
Leaders Cosmetics Co. Ltd.* | 738 | 12,128 | ||||||
LG Household & Health Care Ltd. | 420 | 319,641 | ||||||
LG Household & Health Care Ltd. (Preference) | 64 | 30,091 | ||||||
Marico Ltd. | 20,846 | 102,140 | ||||||
Microbio Co. Ltd.* | 45,365 | 32,778 | ||||||
Natura Cosmeticos SA | 6,900 | 65,790 | ||||||
NUTRIBIOTECH Co. Ltd.* | 868 | 17,163 | ||||||
Procter & Gamble Hygiene & Health Care Ltd. | 207 | 23,711 | ||||||
1,903,964 | ||||||||
Pharmaceuticals – 1.1% | ||||||||
Abbott India Ltd. | 185 | 12,723 | ||||||
Ajanta Pharma Ltd. | 1,415 | 36,343 | ||||||
Aprogen pharmaceuticals, Inc.* | 6,138 | 20,390 | ||||||
Aspen Pharmacare Holdings Ltd.(a) | 13,062 | 270,565 | ||||||
Aurobindo Pharma Ltd. | 10,197 | 96,176 | ||||||
Beijing Tong Ren Tang Chinese Medicine Co. Ltd. | 34,000 | 48,524 | ||||||
Binex Co. Ltd.* | 1,673 | 18,525 | ||||||
Boryung Pharmaceutical Co. Ltd. | 343 | 15,041 |
See Accompanying Notes to the Financial Statements.
148 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Bukwang Pharmaceutical Co. Ltd. | 1,207 | $ | 22,116 | |||||
Cadila Healthcare Ltd. | 10,588 | 72,460 | ||||||
Celltrion Pharm, Inc.* | 1,367 | 24,027 | ||||||
Center Laboratories, Inc.* | 21,086 | 40,186 | ||||||
China Medical System Holdings Ltd. | 39,000 | 67,394 | ||||||
China Traditional Chinese Medicine Holdings Co. Ltd. | 168,000 | 98,499 | ||||||
Chong Kun Dang Pharmaceutical Corp. | 331 | 33,888 | ||||||
Chongkundang Holdings Corp. | 3,593 | 216,294 | ||||||
Cipla Ltd. | 11,592 | 100,450 | ||||||
CMG Pharmaceutical Co. Ltd.* | 6,346 | 19,296 | ||||||
Consun Pharmaceutical Group Ltd. | 39,000 | 26,376 | ||||||
CSPC Pharmaceutical Group Ltd. | 168,000 | 233,287 | ||||||
Dae Hwa Pharmaceutical Co. Ltd. | 480 | 8,711 | ||||||
Daewoong Pharmaceutical Co. Ltd. | 266 | 21,085 | ||||||
Dawnrays Pharmaceutical Holdings Ltd. | 36,000 | 21,107 | ||||||
Dong-A Socio Holdings Co. Ltd. | 339 | 43,794 | ||||||
Dong-A ST Co. Ltd. | 271 | 22,339 | ||||||
DongKook Pharmaceutical Co. Ltd. | 450 | 26,813 | ||||||
Dr Reddy’s Laboratories Ltd. | 3,961 | 160,038 | ||||||
Genomma Lab Internacional SAB de CV, Class B* | 6,900 | 8,635 | ||||||
GlaxoSmithKline Pharmaceuticals Ltd. | 690 | 26,776 | ||||||
Glenmark Pharmaceuticals Ltd. | 7,984 | 111,072 | ||||||
Hanall Biopharma Co. Ltd.* | 1,329 | 14,833 | ||||||
Hanmi Pharm Co. Ltd.* | 269 | 72,929 | ||||||
Hanmi Science Co. Ltd.* | 1,272 | 67,853 | ||||||
Hua Han Health Industry Holdings Ltd.* (c) | 3,780,000 | 257,587 | ||||||
Hypermarcas SA | 16,800 | 157,612 | ||||||
Il Dong Pharmaceutical Co. Ltd. | 13,390 | 264,176 |
Shares | Value | |||||||
Pharmaceuticals – (continued) | ||||||||
Ilyang Pharmaceutical Co. Ltd. | 240 | $ | 8,089 | |||||
Ipca Laboratories Ltd.* | 4,898 | 45,535 | ||||||
Jeil Pharmaceutical Co. | 310 | 18,743 | ||||||
Jubilant Life Sciences Ltd. | 4,445 | 53,312 | ||||||
JW Holdings Corp. | 1,567 | 10,769 | ||||||
JW Pharmaceutical Corp. | 521 | 19,848 | ||||||
JW Shinyak Corp. | 2,356 | 16,067 | ||||||
Kalbe Farma Tbk. PT | 1,008,000 | 119,865 | ||||||
Kolon Life Science, Inc. | 108 | 13,364 | ||||||
Komipharm International Co. Ltd.* | 2,184 | 71,015 | ||||||
Kwang Dong Pharmaceutical Co. Ltd. | 5,491 | 42,561 | ||||||
Kyongbo Pharmaceutical Co. Ltd. | 10,920 | 126,675 | ||||||
Livzon Pharmaceutical Group, Inc., Class H | 3,200 | 20,202 | ||||||
Lupin Ltd. | 9,507 | 197,788 | ||||||
Luye Pharma Group Ltd. | 67,500 | 40,790 | ||||||
Natco Pharma Ltd. | 3,518 | 50,528 | ||||||
Pharmally International Holding Co. Ltd. | 2,000 | 31,520 | ||||||
Piramal Enterprises Ltd.* | 3,024 | 117,347 | ||||||
Richter Gedeon Nyrt | 4,872 | 118,027 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H | 9,500 | 35,850 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 252,000 | 112,107 | ||||||
Sino Biopharmaceutical Ltd. | 168,000 | 138,244 | ||||||
SSY Group Ltd. | 140,165 | 53,705 | ||||||
Strides Shasun Ltd. | 2,027 | 33,805 | ||||||
Sun Pharma Advanced Research Co. Ltd.* | 1,560 | 7,696 | ||||||
Sun Pharmaceutical Industries Ltd. | 42,945 | 428,549 | ||||||
Tong Ren Tang Technologies Co. Ltd., Class H | 17,000 | 28,634 | ||||||
Torrent Pharmaceuticals Ltd. | 375 | 8,270 | ||||||
TTY Biopharm Co. Ltd. | 7,686 | 26,239 | ||||||
TWi Pharmaceuticals, Inc.* | 3,000 | 8,452 | ||||||
Wockhardt Ltd. | 1,465 | 16,372 | ||||||
Yuhan Corp. | 437 | 89,097 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 149 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Yungjin Pharmaceutical Co. Ltd.* | 5,316 | $ | 39,944 | |||||
YungShin Global Holding Corp. | 13,650 | 20,246 | ||||||
4,927,175 | ||||||||
Professional Services – 0.0%(d) | ||||||||
Sporton International, Inc. | 6,300 | 37,273 | ||||||
Real Estate Management & Development – 6.2% | ||||||||
8990 Holdings, Inc. | 2,246,100 | 312,876 | ||||||
Agile Group Holdings Ltd. | 109,750 | 98,213 | ||||||
Alam Sutera Realty Tbk. PT* | 6,900 | 180 | ||||||
Aldar Properties PJSC | 240,613 | 140,188 | ||||||
AP Thailand PCL, NVDR | 1,098,000 | 252,359 | ||||||
Attacq Ltd.* (a) | 830,945 | 1,055,464 | ||||||
Ayala Land, Inc. | 243,600 | 172,102 | ||||||
Bangkok Land PCL, NVDR | 11,793,600 | 637,584 | ||||||
Barwa Real Estate Co. | 8,023 | 74,913 | ||||||
Belle Corp. | 96,000 | 7,878 | ||||||
BR Malls Participacoes SA | 19,850 | 87,745 | ||||||
BR Properties SA* | 2,677 | 7,934 | ||||||
Bumi Serpong Damai Tbk. PT | 681,600 | 91,535 | ||||||
C C Land Holdings Ltd. | 186,000 | 47,830 | ||||||
Carnival Group International Holdings Ltd.* | 409,223 | 42,093 | ||||||
Cathay Real Estate Development Co. Ltd. | 33,100 | 22,216 | ||||||
Central China Real Estate Ltd. | 772,016 | 188,598 | ||||||
Central Pattana PCL, NVDR | 50,700 | 87,945 | ||||||
China Aoyuan Property Group Ltd. | 1,596,000 | 492,494 | ||||||
China Electronics Optics Valley Union Holding Co. Ltd.* | 2,928,000 | 274,822 | ||||||
China Evergrande Group(a) | 289,000 | 308,785 | ||||||
China Jinmao Holdings Group Ltd. | 294,000 | 95,259 | ||||||
China Logistics Property Holdings Co. Ltd.* | 45,000 | 16,316 | ||||||
China Merchants Land Ltd.* | 1,492,000 | 278,160 | ||||||
China New City Commercial Development Ltd.* | 468,000 | 86,649 |
Shares | Value | |||||||
Real Estate Management & Development – (continued) | ||||||||
China Oceanwide Holdings Ltd.* | 202,000 | $ | 19,999 | |||||
China Overseas Grand Oceans Group Ltd.* | 1,092,000 | 560,212 | ||||||
China Overseas Land & Investment Ltd. | 370,000 | 1,075,146 | ||||||
China Resources Land Ltd. | 229,777 | 638,142 | ||||||
China SCE Property Holdings Ltd. | 1,771,000 | 669,458 | ||||||
China South City Holdings Ltd. | 176,000 | 34,396 | ||||||
China Vanke Co. Ltd., Class H | 109,614 | 278,209 | ||||||
China Vast Industrial Urban Development Co. Ltd.(b) | 588,000 | 217,734 | ||||||
Chong Hong Construction Co. Ltd. | 252,000 | 588,008 | ||||||
CIFI Holdings Group Co. Ltd. | 353,149 | 127,591 | ||||||
Ciputra Development Tbk. PT | 399,249 | 38,340 | ||||||
Colour Life Services Group Co. Ltd.* | 47,000 | 27,798 | ||||||
Corp. Inmobiliaria Vesta SAB de CV | 29,500 | 41,240 | ||||||
Country Garden Holdings Co. Ltd.(a) | 672,000 | 639,379 | ||||||
DAMAC Properties Dubai Co. PJSC | 132,972 | 92,679 | ||||||
Dan Form Holdings Co. Ltd.(c) | 85,280 | 27,303 | ||||||
Deyaar Development PJSC* | 167,706 | 24,656 | ||||||
DLF Ltd.* | 19,408 | 56,115 | ||||||
Dongwon Development Co. Ltd. | 6,017 | 24,245 | ||||||
DoubleDragon Properties Corp.* | 42,720 | 44,460 | ||||||
Eastern & Oriental Bhd. | 59,774 | 26,162 | ||||||
Echo Investment SA | 13,632 | 19,107 | ||||||
Eco World Development Group Bhd.* | 80,600 | 28,222 | ||||||
Emaar Malls PJSC | 132,164 | 92,475 | ||||||
Emaar Properties PJSC | 152,292 | 297,701 | ||||||
Ezdan Holding Group QSC | 27,582 | 115,894 | ||||||
Fantasia Holdings Group Co. Ltd.* | 1,638,000 | 259,046 | ||||||
Farglory Land Development Co. Ltd. | 9,000 | 12,200 | ||||||
Filinvest Land, Inc. | 11,234,000 | 388,969 |
See Accompanying Notes to the Financial Statements.
150 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Fullshare Holdings Ltd.(a) (c) | 275,000 | $ | 89,103 | |||||
Future Land Development Holdings Ltd. | 1,880,000 | 555,959 | ||||||
Gemdale Properties & Investment Corp. Ltd.* | 5,544,000 | 392,051 | ||||||
Globe Trade Centre SA* | 11,472 | 27,193 | ||||||
Godrej Properties Ltd.* | 3,326 | 24,005 | ||||||
Goldin Properties Holdings Ltd.* | 44,000 | 47,917 | ||||||
Greenland Hong Kong Holdings Ltd.* | 917,000 | 295,938 | ||||||
Greentown China Holdings Ltd.* | 58,000 | 55,781 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H(a) | 100,800 | 169,781 | ||||||
Guorui Properties Ltd. | 11,000 | 3,267 | ||||||
Hanson International Tbk. PT* | 1,618,075 | 16,874 | ||||||
Highwealth Construction Corp. | 84,000 | 141,712 | ||||||
Hong Pu Real Estate Development Co. Ltd. | 252,000 | 204,634 | ||||||
Hongkong Land Holdings Ltd. | 50,400 | 388,584 | ||||||
Hopson Development Holdings Ltd. | 24,000 | 22,897 | ||||||
Housing Development & Infrastructure Ltd.* | 352,716 | 497,849 | ||||||
Huaku Development Co. Ltd. | 293,000 | 672,023 | ||||||
Huang Hsiang Construction Corp. | 161,000 | 234,261 | ||||||
Hung Sheng Construction Ltd. | 504,000 | 322,402 | ||||||
Iguatemi Empresa de Shopping Centers SA | 4,800 | 49,684 | ||||||
Indiabulls Real Estate Ltd.* | 322,476 | 751,174 | ||||||
IOI Properties Group Bhd. | 67,625 | 32,247 | ||||||
Joy City Property Ltd. | 186,000 | 29,176 | ||||||
Kindom Construction Corp. | 420,000 | 265,188 | ||||||
Korea Real Estate Investment & Trust Co. Ltd. | 9,438 | 26,251 | ||||||
KWG Property Holding Ltd. | 80,418 | 60,798 | ||||||
Land & Houses PCL, NVDR | 104,100 | 30,998 | ||||||
Lippo Karawaci Tbk. PT | 1,213,100 | 71,900 | ||||||
Logan Property Holdings Co. Ltd. | 84,000 | 48,169 |
Shares | Value | |||||||
Real Estate Management & Development – (continued) | ||||||||
Longfor Properties Co. Ltd. | 97,500 | $ | 168,986 | |||||
LPN Development PCL, NVDR | 659,400 | 223,041 | ||||||
LSR Group PJSC* | 3,780 | 57,702 | ||||||
Mah Sing Group Bhd. | 1,489,910 | 511,395 | ||||||
MAS Real Estate, Inc. | 1,983 | 3,319 | ||||||
MBK PCL, NVDR | 848,400 | 367,910 | ||||||
Medinet Nasr Housing | 10,580 | 12,286 | ||||||
Megaworld Corp. | 413,000 | 33,559 | ||||||
Mingfa Group International Co. Ltd.* (c) | 36,000 | 8,748 | ||||||
Multiplan Empreendimentos Imobiliarios SA* | 3,246 | 68,932 | ||||||
New Europe Property Investments plc | 15,313 | 167,606 | ||||||
Oberoi Realty Ltd.* | 1,621 | 10,016 | ||||||
Pakuwon Jati Tbk. PT | 1,381,700 | 64,788 | ||||||
Palm Hills Developments SAE* | 56,092 | 9,198 | ||||||
Parque Arauco SA | 14,904 | 39,046 | ||||||
Poly Property Group Co. Ltd.* | 71,000 | 29,121 | ||||||
Powerlong Real Estate Holdings Ltd. | 138,000 | 64,941 | ||||||
PP Properti Tbk. PT | 786,513 | 15,578 | ||||||
Prestige Estates Projects Ltd.* | 10,540 | 38,642 | ||||||
Prince Housing & Development Corp. | 1,428,000 | 565,596 | ||||||
Quality Houses PCL, NVDR | 5,229,025 | 386,999 | ||||||
Radium Life Tech Co. Ltd.* | 794,000 | 373,697 | ||||||
Red Star Macalline Group Corp. Ltd., Class H(b) | 1,293,600 | 1,383,823 | ||||||
Redco Properties Group Ltd.* (b) | 112,000 | 43,921 | ||||||
Renhe Commercial Holdings Co. Ltd.* | 746,000 | 19,088 | ||||||
Road King Infrastructure Ltd. | 280,000 | 415,452 | ||||||
Robinsons Land Corp. | 47,500 | 24,385 | ||||||
Ronshine China Holdings Ltd.* | 420,000 | 371,531 | ||||||
Ruentex Development Co. Ltd.* | 85,088 | 103,924 | ||||||
Sansiri PCL, NVDR | 6,550,200 | 397,670 | ||||||
Shanghai Industrial Urban Development Group Ltd. | 134,000 | 28,945 | ||||||
Shenzhen Investment Ltd. | 336,000 | 152,500 | ||||||
Shimao Property Holdings Ltd. | 85,500 | 137,415 | ||||||
Shining Building Business Co. Ltd.* | 426,371 | 149,797 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 151 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Shui On Land Ltd. | 210,166 | $ | 46,748 | |||||
Sino-Ocean Group Holding Ltd. | 255,267 | 124,720 | ||||||
Sinyi Realty, Inc. | 19,499 | 22,426 | ||||||
SM Prime Holdings, Inc.* | 512,400 | 305,604 | ||||||
SOHO China Ltd. | 84,500 | 46,066 | ||||||
SP Setia Bhd. Group | 16,671 | 14,056 | ||||||
SRE Group Ltd.* | 5,880,000 | 142,132 | ||||||
Summarecon Agung Tbk. PT | 313,000 | 31,936 | ||||||
Sunac China Holdings Ltd.(a) | 155,000 | 202,082 | ||||||
Sunshine 100 China Holdings Ltd.(b) | 924,000 | 358,787 | ||||||
Sunway Bhd. | 42,958 | 34,339 | ||||||
Supalai PCL, NVDR | 22,800 | 16,215 | ||||||
Taiwan Land Development Corp. | 74,965 | 28,077 | ||||||
Talaat Moustafa Group | 43,834 | 19,671 | ||||||
Tian An China Investment Co. Ltd.* | 672,000 | 543,472 | ||||||
Times Property Holdings Ltd. | 672,000 | 468,302 | ||||||
U City PCL, NVDR* | 30,211,700 | 26,203 | ||||||
UEM Sunrise Bhd. | 114,900 | 32,821 | ||||||
Union Properties PJSC* (c) | 117,141 | 32,211 | ||||||
United Development Co. QSC | 18,564 | 97,834 | ||||||
UOA Development Bhd. | 15,500 | 9,569 | ||||||
Vista Land & Lifescapes, Inc. | 383,400 | 40,592 | ||||||
WHA Corp. PCL, NVDR* | 394,090 | 35,775 | ||||||
Wuzhou International Holdings Ltd.* | 1,712,000 | 173,895 | ||||||
Yida China Holdings Ltd. | 1,158,000 | 275,447 | ||||||
Yuexiu Property Co. Ltd. | 366,520 | 62,206 | ||||||
Yuzhou Properties Co. Ltd. | 69,000 | 31,495 | ||||||
Zall Group Ltd.* | 84,000 | 46,981 | ||||||
Zhuguang Holdings Group Co. Ltd.* | 2,016,000 | 285,128 | ||||||
26,877,187 | ||||||||
Road & Rail – 0.2% | ||||||||
Blue Bird Tbk. PT | 851,300 | 250,364 | ||||||
BTS Group Holdings PCL, NVDR | 92,840 | 22,814 | ||||||
CAR, Inc.* | 37,000 | 34,919 |
Shares | Value | |||||||
Road & Rail – (continued) | ||||||||
CJ Korea Express Corp.* | 504 | $ | 73,746 | |||||
Container Corp. of India Ltd. | 2,187 | 41,403 | ||||||
Dazhong Transportation Group Co. Ltd., Class B | 104,700 | 71,510 | ||||||
Evergreen International Storage & Transport Corp. | 66,000 | 29,969 | ||||||
Guangshen Railway Co. Ltd., Class H | 30,000 | 16,278 | ||||||
JSL SA* | 100 | 220 | ||||||
Localiza Rent a Car SA | 8,400 | 123,920 | ||||||
PKP Cargo SA* | 845 | 13,912 | ||||||
679,055 | ||||||||
Semiconductors & Semiconductor Equipment – 4.0% | ||||||||
A-DATA Technology Co. Ltd. | 11,000 | 26,068 | ||||||
Advanced Semiconductor Engineering, Inc. | 258,840 | 325,577 | ||||||
APS Holdings Corp.* | 837 | 11,364 | ||||||
Ardentec Corp. | 507,720 | 417,336 | ||||||
ASMedia Technology, Inc. | 2,000 | 20,748 | ||||||
ASPEED Technology, Inc. | 1,000 | 19,423 | ||||||
China Electronics Corp. Holdings Co. Ltd. | 46,000 | 8,635 | ||||||
Chipbond Technology Corp. | 40,000 | 59,660 | ||||||
ChipMOS TECHNOLOGIES, Inc. | 8,000 | 7,053 | ||||||
Darwin Precisions Corp. | 49,000 | 22,412 | ||||||
Dongbu HiTek Co. Ltd.* | 2,278 | 42,241 | ||||||
Elan Microelectronics Corp. | 11,000 | 15,586 | ||||||
Elite Semiconductor Memory Technology, Inc. | 336,000 | 466,063 | ||||||
eMemory Technology, Inc. | 3,000 | 41,315 | ||||||
Eo Technics Co. Ltd. | 562 | 41,882 | ||||||
Epistar Corp.* | 103,436 | 102,850 | ||||||
E-Ton Solar Tech Co. Ltd.* | 507,000 | 153,422 | ||||||
Everlight Electronics Co. Ltd. | 16,000 | 25,190 | ||||||
Faraday Technology Corp. | 20,400 | 24,781 | ||||||
GCL-Poly Energy Holdings Ltd.* (a) | 1,008,000 | 121,828 | ||||||
GemVax & Kael Co. Ltd.* | 2,542 | 29,153 | ||||||
Gigasolar Materials Corp. | 1,380 | 12,121 | ||||||
Gigastorage Corp.* | 8,000 | 5,780 | ||||||
Gintech Energy Corp.* | 602,337 | 347,375 |
See Accompanying Notes to the Financial Statements.
152 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Global Lighting Technologies, Inc. | 97,000 | $ | 173,610 | |||||
Globalwafers Co. Ltd. | 6,000 | 42,955 | ||||||
Greatek Electronics, Inc. | 13,000 | 18,269 | ||||||
G-SMATT GLOBAL Co. Ltd.* | 1,146 | 14,049 | ||||||
Hanmi Semiconductor Co. Ltd.(c) | 14,760 | 242,563 | ||||||
Hansol Technics Co. Ltd.* | 2,317 | 31,154 | ||||||
Holtek Semiconductor, Inc. | 19,000 | 35,266 | ||||||
KC Tech Co. Ltd. | 24,528 | 317,944 | ||||||
King Yuan Electronics Co. Ltd. | 67,000 | 60,513 | ||||||
Kinsus Interconnect Technology Corp. | 15,000 | 39,028 | ||||||
Koh Young Technology, Inc. | 1,153 | 54,413 | ||||||
Land Mark Optoelectronics Corp. | 2,000 | 17,567 | ||||||
Landing International Development Ltd.* | 5,580,000 | 47,352 | ||||||
LEENO Industrial, Inc. | 1,178 | 44,101 | ||||||
Lextar Electronics Corp. | 420,000 | 290,246 | ||||||
Macronix International* | 4,473,000 | 1,994,029 | ||||||
MediaTek, Inc.* | 65,000 | 467,502 | ||||||
Motech Industries, Inc.* | 5,000 | 4,416 | ||||||
Nanya Technology Corp. | 84,000 | 134,056 | ||||||
Neo Solar Power Corp.* | 27,480 | 12,797 | ||||||
Novatek Microelectronics Corp. | 18,000 | 69,206 | ||||||
Orient Semiconductor Electronics Ltd.* | 34,000 | 11,078 | ||||||
Parade Technologies Ltd. | 2,400 | 28,199 | ||||||
Phison Electronics Corp. | 6,000 | 56,577 | ||||||
Pixart Imaging, Inc. | 12,000 | 31,421 | ||||||
Powertech Technology, Inc. | 24,000 | 75,331 | ||||||
Radiant Opto-Electronics Corp. | 32,330 | 67,508 | ||||||
Realtek Semiconductor Corp. | 17,070 | 57,709 | ||||||
Semiconductor Manufacturing International Corp.* (a) | 139,800 | 177,232 | ||||||
Seoul Semiconductor Co. Ltd. | 252 | 4,163 | ||||||
SFA Semicon Co. Ltd.* | 79,380 | 165,331 | ||||||
Sigurd Microelectronics Corp. | 420,000 | 373,073 | ||||||
Silergy Corp. | 2,000 | 36,194 | ||||||
Silicon Works Co. Ltd. | 384 | 9,888 |
Shares | Value | |||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Siliconware Precision Industries Co. Ltd. | 98,000 | $ | 158,835 | |||||
Sino-American Silicon Products, Inc. | 27,000 | 39,197 | ||||||
Sitronix Technology Corp. | 14,000 | 42,040 | ||||||
SK Hynix, Inc. | 50,736 | 2,407,719 | ||||||
Taiwan Semiconductor Co. Ltd. | 252,000 | 332,425 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 766,000 | 4,938,086 | ||||||
Taiwan Surface Mounting Technology Corp. | 336,000 | 298,459 | ||||||
Topco Scientific Co. Ltd. | 168,000 | 549,587 | ||||||
United Microelectronics Corp. | 1,008,000 | 402,585 | ||||||
Vanguard International Semiconductor Corp. | 30,000 | 57,274 | ||||||
Win Semiconductors Corp. | 21,961 | 97,900 | ||||||
Winbond Electronics Corp. | 228,000 | 128,846 | ||||||
Wonik Holdings Co. Ltd.* | 41,412 | 239,832 | ||||||
XinTec, Inc. | 193,000 | 289,139 | ||||||
Xinyi Solar Holdings Ltd.* (a) | 120,000 | 37,493 | ||||||
17,572,020 | ||||||||
Software – 0.4% | ||||||||
Asseco Poland SA | 8,652 | 121,715 | ||||||
Brogent Technologies, Inc. | 4,389 | 28,003 | ||||||
CD Projekt SA* | 2,139 | 37,360 | ||||||
Com2uSCorp | 719 | 75,824 | ||||||
Cyient Ltd. | 1,968 | 16,754 | ||||||
DoubleUGames Co. Ltd. | 11,982 | 577,040 | ||||||
DuzonBizon Co. Ltd. | 669 | 15,992 | ||||||
Gamevil, Inc.* | 528 | 34,755 | ||||||
Hancom, Inc. | 2,553 | 38,590 | ||||||
Kingdee International Software Group Co. Ltd.* | 118,000 | 49,915 | ||||||
Kingsoft Corp. Ltd. | 23,000 | 65,651 | ||||||
Linx SA | 6,200 | 34,539 | ||||||
NCSoft Corp. | 756 | 239,177 | ||||||
NetDragon Websoft Holdings Ltd. | 4,500 | 13,076 | ||||||
NHN Entertainment Corp.* | 720 | 39,357 | ||||||
Oracle Financial Services Software Ltd. | 797 | 44,076 | ||||||
Sinosoft Technology Group Ltd. | 38,400 | 12,146 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 153 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Soft-World International Corp. | 16,000 | $ | 36,591 | |||||
TOTVS SA | 3,800 | 32,930 | ||||||
Webzen, Inc.* | 474 | 8,435 | ||||||
WeMade Entertainment Co. Ltd.(c) | 1,023 | 27,690 | ||||||
XPEC Entertainment, Inc.(c) | 14,800 | 6,475 | ||||||
1,556,091 | ||||||||
Specialty Retail – 1.1% | ||||||||
Ace Hardware Indonesia Tbk. PT | 578,100 | 40,552 | ||||||
Beauty Community PCL, NVDR | 59,500 | 16,943 | ||||||
Bermaz Auto Bhd. | 54,880 | 27,181 | ||||||
Cashbuild Ltd. | 1,168 | 31,679 | ||||||
China Harmony New Energy Auto Holding Ltd.(a) | 930,000 | 347,963 | ||||||
China Yongda Automobiles Services Holdings Ltd.(a) | 787,500 | 732,059 | ||||||
China ZhengTong Auto Services Holdings Ltd. | 1,013,000 | 557,456 | ||||||
Cia Hering | 12,400 | 85,592 | ||||||
FF Group* | 2,374 | 50,514 | ||||||
Foschini Group Ltd. (The)(a) | 7,166 | 85,465 | ||||||
GOME Electrical Appliances Holding Ltd.(a) | 778,447 | 106,094 | ||||||
Hengdeli Holdings Ltd.* | 2,688,000 | 328,330 | ||||||
Home Product Center PCL, NVDR | 142,065 | 39,839 | ||||||
Hotai Motor Co. Ltd. | 10,000 | 115,177 | ||||||
Hotel Shilla Co. Ltd. | 1,596 | 71,251 | ||||||
Italtile Ltd. | 559,862 | 562,215 | ||||||
JUMBO SA | 5,292 | 83,502 | ||||||
Kolao Holdings | 21,672 | 127,415 | ||||||
LOTTE Himart Co. Ltd. | 381 | 18,415 | ||||||
M.Video PJSC | 88,736 | 594,447 | ||||||
Mr Price Group Ltd.(a) | 9,744 | 114,376 | ||||||
National Petroleum Co. Ltd. | 27,000 | 35,662 | ||||||
PC Jeweller Ltd. | 1,509 | 9,909 | ||||||
Pou Sheng International Holdings Ltd.(a) | 99,000 | 21,130 | ||||||
PTG Energy PCL, NVDR | 26,300 | 17,184 | ||||||
Senao International Co. Ltd. | 128,000 | 224,427 |
Shares | Value | |||||||
Specialty Retail – (continued) | ||||||||
Seobu T&D | 1,777 | $ | 26,314 | |||||
Shinsegae International, Inc. | 150 | 9,636 | ||||||
Siam Global House PCL, NVDR | 21,630 | 10,193 | ||||||
Super Group Ltd.* | 29,736 | 81,696 | ||||||
Truworths International Ltd. | 16,348 | 105,695 | ||||||
Via Varejo SA | 5,700 | 21,223 | ||||||
Zhongsheng Group Holdings Ltd. | 57,500 | 81,176 | ||||||
4,780,710 | ||||||||
Technology Hardware, Storage & Peripherals – 6.6% | ||||||||
Acer, Inc.* | 53,858 | 25,438 | ||||||
Adlink Technology, Inc. | 13,223 | 29,057 | ||||||
Advantech Co. Ltd. | 13,292 | 107,495 | ||||||
Asia Vital Components Co. Ltd. | 336,000 | 279,527 | ||||||
Asustek Computer, Inc. | 53,000 | 520,848 | ||||||
Casetek Holdings Ltd. | 10,000 | 29,664 | ||||||
Catcher Technology Co. Ltd. | 62,000 | 637,036 | ||||||
Chicony Electronics Co. Ltd. | 42,442 | 111,974 | ||||||
Clevo Co. | 39,322 | 36,036 | ||||||
CMC Magnetics Corp.* | 2,058,301 | 257,194 | ||||||
Compal Electronics, Inc. | 339,000 | 226,966 | ||||||
Coolpad Group Ltd.* (c) | 326,000 | 30,179 | ||||||
Elitegroup Computer Systems Co. Ltd. | 392,530 | 255,650 | ||||||
Ennoconn Corp. | 1,000 | 10,888 | ||||||
Foxconn Technology Co. Ltd. | 85,304 | 260,116 | ||||||
Getac Technology Corp. | 17,000 | 22,059 | ||||||
Gigabyte Technology Co. Ltd. | 38,000 | 50,316 | ||||||
HTC Corp.* | 24,000 | 57,592 | ||||||
Inventec Corp. | 261,000 | 194,208 | ||||||
Legend Holdings Corp., Class H(b) | 436,800 | 1,302,950 | ||||||
Lenovo Group Ltd. | 672,000 | 430,285 | ||||||
Lite-On Technology Corp. | 183,666 | 320,203 | ||||||
Micro-Star International Co. Ltd. | 23,000 | 46,120 | ||||||
Mitac Holdings Corp. | 42,676 | 45,051 | ||||||
Pegatron Corp. | 187,000 | 551,003 | ||||||
Primax Electronics Ltd. | 26,000 | 43,346 | ||||||
Qisda Corp. | 83,000 | 52,819 | ||||||
Quanta Computer, Inc. | 252,000 | 522,024 | ||||||
Quanta Storage, Inc. | 252,000 | 316,556 |
See Accompanying Notes to the Financial Statements.
154 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Ritek Corp.* | 200,823 | $ | 34,080 | |||||
Samsung Electronics Co. Ltd. | 9,669 | 18,957,324 | ||||||
Samsung Electronics Co. Ltd. (Preference) | 1,512 | 2,329,322 | ||||||
Sindoh Co. Ltd. | 6,320 | 291,590 | ||||||
Spigen Korea Co. Ltd. | 3,108 | 137,660 | ||||||
Transcend Information, Inc. | 3,000 | 10,242 | ||||||
TSC Auto ID Technology Co. Ltd. | 3,300 | 24,282 | ||||||
Wistron Corp. | 266,042 | 251,307 | ||||||
28,808,407 | ||||||||
Textiles, Apparel & Luxury Goods – 1.8% | ||||||||
361 Degrees International Ltd. | 756,000 | 254,672 | ||||||
Aksa Akrilik Kimya Sanayii A/S | 88,080 | 262,970 | ||||||
Alpargatas SA (Preference)* | 10,800 | 45,039 | ||||||
ANTA Sports Products Ltd.(a) | 32,000 | 89,900 | ||||||
Arvind Ltd. | 7,361 | 45,690 | ||||||
Bata India Ltd. | 2,024 | 18,343 | ||||||
Belle International Holdings Ltd.(c) | 539,000 | 365,222 | ||||||
Bosideng International Holdings Ltd. | 4,368,000 | 353,818 | ||||||
C.banner International Holdings Ltd.* | 56,000 | 21,313 | ||||||
CCC SA | 506 | 29,256 | ||||||
China Dongxiang Group Co. Ltd. | 96,000 | 18,268 | ||||||
China Jicheng Holdings Ltd.* (b) | 760,000 | 18,762 | ||||||
China Lilang Ltd. | 552,000 | 347,770 | ||||||
Cosmo Lady China Holdings Co. Ltd.(b) | 15,000 | 4,455 | ||||||
Eclat Textile Co. Ltd. | 6,528 | 71,509 | ||||||
Everest Textile Co. Ltd. | 23,000 | 12,540 | ||||||
Feng TAY Enterprise Co. Ltd. | 12,122 | 46,606 | ||||||
Fila Korea Ltd. | 342 | 20,858 | ||||||
Formosa Taffeta Co. Ltd. | 33,000 | 34,454 | ||||||
Forus SA | 11,442 | 45,987 | ||||||
Fuguiniao Co. Ltd., Class H* (c) | 334,800 | 167,022 | ||||||
Grendene SA | 6,274 | 47,798 | ||||||
Handsome Co. Ltd. | 910 | 25,071 |
Shares | Value | |||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Hansae Co. Ltd. | 432 | $ | 10,364 | |||||
Hansae Yes24 Holdings Co. Ltd. | 14,616 | 129,089 | ||||||
HOSA International Ltd. | 120,000 | 37,801 | ||||||
Ilshin Spinning Co. Ltd. | 122 | 12,651 | ||||||
Kyungbang Ltd. | 14,280 | 184,477 | ||||||
Lao Feng Xiang Co. Ltd., Class B | 252,000 | 929,628 | ||||||
Lealea Enterprise Co. Ltd. | 73,150 | 20,220 | ||||||
LF Corp. | 23,352 | 512,024 | ||||||
Li Cheng Enterprise Co. Ltd. | 84,000 | 221,895 | ||||||
Li Ning Co. Ltd.* | 93,500 | 61,552 | ||||||
LPP SA | 84 | 150,201 | ||||||
Luthai Textile Co. Ltd., Class B | 301,218 | 353,597 | ||||||
Makalot Industrial Co. Ltd. | 7,650 | 32,202 | ||||||
Nan Liu Enterprise Co. Ltd. | 6,000 | 29,830 | ||||||
Nien Hsing Textile Co. Ltd. | 221,546 | 196,058 | ||||||
Page Industries Ltd. | 129 | 29,147 | ||||||
Pou Chen Corp. | 252,000 | 352,889 | ||||||
Rajesh Exports Ltd. | 4,307 | 41,189 | ||||||
Relaxo Footwears Ltd. | 3,920 | 30,127 | ||||||
Ruentex Industries Ltd. | 55,140 | 88,729 | ||||||
Shenzhou International Group Holdings Ltd. | 17,000 | 111,912 | ||||||
SRF Ltd. | 774 | 21,313 | ||||||
Tainan Spinning Co. Ltd. | 48,555 | 22,370 | ||||||
Taiwan Paiho Ltd. | 8,000 | 26,648 | ||||||
Texhong Textile Group Ltd. | 336,000 | 407,388 | ||||||
Titan Co. Ltd.* | 18,984 | 138,772 | ||||||
TOPBI International Holdings Ltd. | 43,336 | 143,635 | ||||||
Toung Loong Textile Manufacturing | 7,000 | 18,283 | ||||||
Vardhman Textiles Ltd.* | 16,716 | 337,399 | ||||||
Welspun India Ltd. | 329,868 | 488,931 | ||||||
Xtep International Holdings Ltd. | 1,092,000 | 435,253 | ||||||
Youngone Corp. | 1,364 | 40,636 | ||||||
Youngone Holdings Co. Ltd. | 315 | 14,699 | ||||||
7,978,232 | ||||||||
Thrifts & Mortgage Finance – 0.5% | ||||||||
Dewan Housing Finance Corp. Ltd. | 11,518 | 76,408 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 155 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Thrifts & Mortgage Finance – (continued) | ||||||||
GRUH Finance Ltd. | 2,738 | $ | 16,938 | |||||
Housing Development Finance Corp. Ltd. | 64,176 | 1,533,470 | ||||||
Indiabulls Housing Finance Ltd. | 14,196 | 224,415 | ||||||
LIC Housing Finance Ltd. | 15,236 | 158,423 | ||||||
Malaysia Building Society Bhd. | 28,960 | 8,739 | ||||||
2,018,393 | ||||||||
Tobacco – 0.3% | ||||||||
British American Tobacco Malaysia Bhd. | 5,900 | 61,759 | ||||||
Godfrey Phillips India Ltd. | 15,057 | 279,326 | ||||||
Gudang Garam Tbk. PT | 18,000 | 89,669 | ||||||
ITC Ltd. | 117,516 | 507,842 | ||||||
KT&G Corp. | 5,208 | 464,550 | ||||||
1,403,146 | ||||||||
Trading Companies & Distributors – 0.5% | ||||||||
Adani Enterprises Ltd.* | 329,196 | 557,530 | ||||||
AKR Corporindo Tbk. PT | 54,500 | 27,702 | ||||||
Barloworld Ltd. | 17,151 | 154,316 | ||||||
BOC Aviation Ltd.(b) | 16,800 | 89,643 | ||||||
China Aircraft Leasing Group Holdings Ltd. | 10,500 | 12,515 | ||||||
CITIC Resources Holdings Ltd.* | 126,000 | 15,228 | ||||||
Ferreycorp SAA | 1,226,148 | 706,703 | ||||||
iMarketKorea, Inc. | 27,860 | 325,633 | ||||||
International Business Settlement Holdings Ltd.* | 420,000 | 88,562 | ||||||
Kushal Tradelink Ltd. | 66,495 | 164,558 | ||||||
LG International Corp. | 2,856 | 81,571 | ||||||
Posco Daewoo Corp. | 2,545 | 53,678 | ||||||
SK Networks Co. Ltd. | 3,140 | 22,103 | ||||||
Tai United Holdings Ltd.* | 45,000 | 7,290 | ||||||
2,307,032 | ||||||||
Transportation Infrastructure – 1.4% | ||||||||
Adani Ports & Special Economic Zone Ltd.* | 37,296 | 189,988 | ||||||
Airports of Thailand PCL | 54,000 | 62,836 | ||||||
Airports of Thailand PCL, NVDR | 114,000 | 132,654 |
Shares | Value | |||||||
Transportation Infrastructure – (continued) | ||||||||
Bangkok Aviation Fuel Services PCL, NVDR | 18,800 | $ | 21,605 | |||||
Bangkok Expressway & Metro PCL, NVDR | 336,000 | 69,939 | ||||||
Beijing Capital International Airport Co. Ltd., Class H | 54,000 | 76,235 | ||||||
CCR SA | 33,600 | 185,290 | ||||||
China Merchants Port Holdings Co. Ltd. | 20,000 | 57,216 | ||||||
COSCO SHIPPING Ports Ltd. | 66,000 | 72,300 | ||||||
Dalian Port PDA Co. Ltd., Class H | 2,520,000 | 447,133 | ||||||
DP World Ltd. | 7,308 | 149,376 | ||||||
EcoRodovias Infraestrutura e Logistica SA | 6,280 | 18,454 | ||||||
Grupo Aeroportuario del Centro Norte SAB de CV* | 16,800 | 92,482 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B | 17,900 | 182,605 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 8,400 | 158,114 | ||||||
Gujarat Pipavav Port Ltd. | 12,586 | 31,176 | ||||||
Hopewell Highway Infrastructure Ltd. | 19,000 | 10,993 | ||||||
IL&FS Transportation Networks Ltd. | 88,956 | 158,539 | ||||||
International Container Terminal Services, Inc. | 55,670 | 99,162 | ||||||
Jasa Marga Persero Tbk. PT | 36,823 | 12,819 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 40,000 | 59,042 | ||||||
Malaysia Airports Holdings Bhd. | 9,916 | 17,360 | ||||||
Novorossiysk Commercial Sea Port PJSC | 266,892 | 33,412 | ||||||
OHL Mexico SAB de CV | 46,000 | 56,040 | ||||||
Promotora y Operadora de Infraestructura SAB de CV | 9,040 | 95,679 | ||||||
Promotora y Operadora de Infraestructura SAB de CV, Class L | 2,300 | 18,990 | ||||||
Qingdao Port International Co. Ltd., Class H(b) | 1,034,000 | 550,400 | ||||||
Sebang Co. Ltd. | 13,272 | 180,786 | ||||||
Shenzhen Expressway Co. Ltd., Class H | 840,000 | 765,742 |
See Accompanying Notes to the Financial Statements.
156 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Shenzhen International Holdings Ltd. | 45,580 | $ | 76,538 | |||||
Sociedad Matriz SAAM SA | 5,404,242 | 530,695 | ||||||
Taiwan High Speed Rail Corp. | 98,000 | 75,844 | ||||||
TAV Havalimanlari Holding A/S | 7,462 | 31,076 | ||||||
Tianjin Port Development Holdings Ltd. | 1,816,400 | 319,955 | ||||||
Westports Holdings Bhd. | 27,200 | 25,063 | ||||||
Yuexiu Transport Infrastructure Ltd. | 840,000 | 648,019 | ||||||
Zhejiang Expressway Co. Ltd., Class H | 168,000 | 209,094 | ||||||
5,922,651 | ||||||||
Water Utilities – 0.2% | ||||||||
Aguas Andinas SA, Class A | 64,290 | 36,381 | ||||||
Beijing Enterprises Water Group Ltd. | 190,000 | 145,599 | ||||||
China Everbright Water Ltd. | 8,500 | 2,828 | ||||||
China Water Affairs Group Ltd. | 30,000 | 20,058 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 16,800 | 152,937 | ||||||
Cia de Saneamento de Minas Gerais-COPASA* | 8,400 | 94,378 | ||||||
CT Environmental Group Ltd. | 157,600 | 29,382 | ||||||
Eastern Water Resources Development and Management PCL, NVDR | 23,200 | 7,847 | ||||||
Guangdong Investment Ltd. | 106,000 | 164,093 | ||||||
Inversiones Aguas Metropolitanas SA | 1,920 | 3,038 | ||||||
Kangda International Environmental Co. Ltd.(b) | 1,132,000 | 263,440 | ||||||
Manila Water Co., Inc. | 25,200 | 16,114 | ||||||
TTW PCL, NVDR | 42,200 | 12,810 | ||||||
948,905 | ||||||||
Wireless Telecommunication Services – 1.7% | ||||||||
Advanced Info Service PCL, NVDR | 50,444 | 255,210 | ||||||
Almendral SA | 989,856 | 84,615 | ||||||
America Movil SAB de CV, Series L | 974,400 | 742,953 |
Shares | Value | |||||||
Wireless Telecommunication Services – (continued) | ||||||||
Axiata Group Bhd. | 146,527 | $ | 173,834 | |||||
Bharti Airtel Ltd. | 51,912 | 286,876 | ||||||
China Mobile Ltd. | 224,117 | 2,390,278 | ||||||
DiGi.Com Bhd. | 117,600 | 139,245 | ||||||
Empresa Nacional de Telecomunicaciones SA | 8,507 | 102,198 | ||||||
Far EasTone Telecommunications Co. Ltd. | 51,000 | 125,594 | ||||||
Global Telecom Holding SAE* | 111,066 | 43,319 | ||||||
Globe Telecom, Inc. | 1,560 | 64,879 | ||||||
Idea Cellular Ltd. | 48,562 | 64,883 | ||||||
Intouch Holdings PCL, NVDR | 59,600 | 92,183 | ||||||
Maxis Bhd. | 34,500 | 50,705 | ||||||
MegaFon PJSC | 10,752 | 112,966 | ||||||
Mobile TeleSystems PJSC | 88,620 | 425,816 | ||||||
MTN Group Ltd.(a) | 63,338 | 598,656 | ||||||
PLDT, Inc. | 3,215 | 113,891 | ||||||
Reliance Communications Ltd.* | 73,660 | 39,389 | ||||||
Sistema PJSC FC | 372,288 | 139,461 | ||||||
SK Telecom Co. Ltd. | 3,419 | 719,615 | ||||||
Taiwan Mobile Co. Ltd. | 53,000 | 195,867 | ||||||
TIM Participacoes SA | 21,600 | 69,416 | ||||||
Total Access Communication PCL, NVDR | 38,000 | 45,591 | ||||||
Tower Bersama Infrastructure Tbk. PT | 55,500 | 24,358 | ||||||
Turkcell Iletisim Hizmetleri A/S | 43,010 | 150,195 | ||||||
Vodacom Group Ltd. | 22,680 | 256,239 | ||||||
Vodafone Qatar QSC* | 6,402 | 16,579 | ||||||
XL Axiata Tbk. PT* | 219,875 | 52,952 | ||||||
7,577,763 | ||||||||
Total Common Stocks (Cost $380,183,995) | 431,783,987 | |||||||
Principal Amount | ||||||||
CORPORATE BOND – 0.0%(d) | ||||||||
Independent Power and Renewable Electricity Producers – 0.0%(d) | ||||||||
NTPC Ltd. | ||||||||
Series 54, | INR49,126 | 10,654 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 157 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
No. of Rights | Value | |||||||
RIGHTS – 0.0%(d) | ||||||||
Banks – 0.0%(d) | ||||||||
Bank of Communications Co. Ltd., expiring | 3,772 | $ | — | |||||
Doha Bank QSC, expiring | 2,074 | 2,683 | ||||||
E.Sun Financial Holding Co. Ltd., expiring 5/2/2017, price 15.00 TWD* (c) | 21,620 | 2,329 | ||||||
5,012 | ||||||||
Construction Materials – 0.0%(d) | ||||||||
Siam City Cement PCL, expiring 5/15/2017, price 250.00 THB* (c) | 1,093 | 853 | ||||||
Total Rights (Cost $–) | 5,865 | |||||||
Principal Amount | ||||||||
CONVERTIBLE PREFERRED STOCK – 0.0%(d) | ||||||||
Chemicals – 0.0%(d) | ||||||||
UPL Ltd. | INR3,330 | 777 | ||||||
No. of Warrants | ||||||||
WARRANT – 0.0%(d) | ||||||||
Marine – 0.0%(d) | ||||||||
Thoresen Thai Agencies PCL, expiring 2/28/2019, price 18.29 THB | 6,335 | 267 |
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(e) – 0.3% | ||||||||
REPURCHASE AGREEMENTS – 0.3% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $100,009, collateralized by various Common Stocks; total market value $110,000 | $ | 100,000 | $ | 100,000 | ||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $1,302,302, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $1,328,257 | 1,302,212 | 1,302,212 | ||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $100,011, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $104,915 | 100,000 | 100,000 | ||||||
1,502,212 | ||||||||
Total Securities Lending Reinvestments (Cost $1,502,212) | 1,502,212 | |||||||
Total Investments – 99.4% (Cost $381,686,681) | 433,303,762 | |||||||
Other Assets Less Liabilities – 0.6% |
| 2,459,267 | ||||||
NET ASSETS – 100.0% | $ | 435,763,029 |
See Accompanying Notes to the Financial Statements.
158 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
* | Non-income producing security. |
^ | Security subject to restrictions on resale. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $11,902,480, collateralized in the form of cash with a value of $1,502,212 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $3,605,813 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from 5/4/2017 – 2/15/2047 and $7,520,008 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $12,628,033. |
(b) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(c) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $2,012,057, which represents approximately 0.46% of net assets of the Fund. |
(d) | Represents less than 0.05% of net assets. |
(e) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $1,502,212. |
Percentages shown are based on Net Assets.
Abbreviations:
ADR – American Depositary Receipt
GDR – Global Depositary Receipt
INR – Indian Rupee
NVDR – Non-Voting Depositary Receipt
OJSC – Open Joint Stock Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
QAR – Qatari Riyal
THB – Thai Baht
TWD – Taiwan Dollar
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 64,353,673 | ||
Aggregate gross unrealized depreciation | (16,893,767 | ) | ||
Net unrealized appreciation | $ | 47,459,906 | ||
Federal income tax cost of investments | $ | 385,843,856 |
Futures Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation | |||||||||||||
Mini MSCI Emerging Markets Index Futures Contracts | 88 | 06/16/2017 | $ | 4,307,600 | $ | 166,894 |
Forward Foreign Currency Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2017:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
HKD | 262,204 | Citibank NA | USD | 33,810 | 06/21/2017 | $ | (60 | ) | ||||||||||||||
INR | 6,383,957 | Morgan Stanley | USD | 94,524 | 06/21/2017 | 3,995 | ||||||||||||||||
KRW | 283,442,500 | BNP Paribas SA | USD | 250,000 | 06/21/2017 | (769 | ) | |||||||||||||||
RUB | 329,028 | Goldman Sachs & Co. | USD | 5,416 | 06/21/2017 | 291 | ||||||||||||||||
TWD | 17,083,917 | Goldman Sachs & Co. | USD | 565,515 | 06/21/2017 | 1,881 | ||||||||||||||||
ZAR | 26,054 | JPMorgan Chase Bank | USD | 1,945 | 06/21/2017 | (16 | ) | |||||||||||||||
USD | 81,812 | Morgan Stanley | BRL | 265,587 | 06/21/2017 | (217 | ) | |||||||||||||||
USD | 313,001 | Citibank NA | KRW | 361,437,278 | 06/21/2017 | (4,812 | ) | |||||||||||||||
$ | 293 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 159 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Abbreviations:
BRL – Brazilian Real
HKD – Hong Kong Dollar
INR – Indian Rupee
KRW – Korean Won
RUB – Russian Ruble
TWD – Taiwan Dollar
USD – US Dollar
ZAR – South African Rand
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Brazil | 5.4 | % | ||
Chile | 1.7 | |||
China | 26.6 | |||
Colombia | 0.7 | |||
Czech Republic | 0.1 | |||
Egypt | 0.2 | |||
Greece | 0.4 | |||
Hungary | 0.2 | |||
India | 8.4 | |||
Indonesia | 2.0 | |||
Malaysia | 1.7 | |||
Mexico | 1.8 | |||
Peru | 0.5 | |||
Philippines | 1.5 | |||
Poland | 1.0 | |||
Qatar | 0.6 | |||
Russia | 4.0 | |||
South Africa | 5.8 | |||
South Korea | 17.5 | |||
Taiwan | 14.3 | |||
Thailand | 2.5 | |||
Turkey | 1.3 | |||
United Arab Emirates | 0.9 | |||
Other1 | 0.9 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
160 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
EXCHANGE TRADED FUND – 100.0% | ||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 327,930 | $ | 20,201,209 | |||||
Total Investments – 100.0% (Cost $19,060,940) | 20,201,209 | |||||||
Liabilities Less Other Assets – 0.0%(b) |
| (3,926 | ) | |||||
NET ASSETS – 100.0% | $ | 20,197,283 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Fund. |
(b) | Represents less than 0.05% of net assets. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 1,140,197 | ||
Aggregate gross unrealized depreciation | — | |||
Net unrealized appreciation | $ | 1,140,197 | ||
Federal income tax cost of investments | $ | 19,061,012 |
The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund currently seeks its investment objective by investing a
substantial portion of its assets in an affiliated FlexShares Fund. The Schedule of Investments of the affiliated FlexShares Fund is located elsewhere in this Report.
Investment in a company which was affiliated for the period ending April 30, 2017, was as follows:
Security | Value October 31, 2016 | Purchases at Cost | Sales at Cost | Value April 30, 2017 | Dividend Income | Realized Gain | ||||||||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | $ | 3,588,250 | $ | 26,287,143 | $ | 10,836,664 | $ | 20,201,209 | $ | 91,862 | $ | 814,982 |
Forward Foreign Currency Contracts
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2017:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
USD | 1,191,678 | Toronto-Dominion Bank (The) | AUD | 1,585,000 | 05/23/2017 | $ | 6,799 | |||||||||||||||||
USD | 1,053,059 | Toronto-Dominion Bank (The) | CHF | 1,050,000 | 05/23/2017 | (3,224 | ) | |||||||||||||||||
USD | 256,348 | Toronto-Dominion Bank (The) | DKK | 1,781,000 | 05/23/2017 | (4,705 | ) | |||||||||||||||||
USD | 4,855,529 | Toronto-Dominion Bank (The) | EUR | 4,537,000 | 05/23/2017 | (90,416 | ) | |||||||||||||||||
USD | 3,121,146 | Toronto-Dominion Bank (The) | GBP | 2,441,000 | 05/23/2017 | (38,841 | ) | |||||||||||||||||
USD | 582,958 | Toronto-Dominion Bank (The) | HKD | 4,530,000 | 05/23/2017 | 238 | ||||||||||||||||||
USD | 5,531,749 | Toronto-Dominion Bank (The) | JPY | 602,798,000 | 05/23/2017 | 119,739 | ||||||||||||||||||
USD | 204,281 | Toronto-Dominion Bank (The) | NOK | 1,773,000 | 05/23/2017 | (2,745 | ) | |||||||||||||||||
USD | 61,559 | Toronto-Dominion Bank (The) | NZD | 88,000 | 05/23/2017 | 1,176 | ||||||||||||||||||
USD | 482,822 | Toronto-Dominion Bank (The) | SEK | 4,352,000 | 05/23/2017 | (9,223 | ) | |||||||||||||||||
USD | 270,577 | Toronto-Dominion Bank (The) | SGD | 378,000 | 05/23/2017 | 69 | ||||||||||||||||||
USD | 1,698,034 | Toronto-Dominion Bank (The) | CAD | 2,294,000 | 05/24/2017 | 19,747 | ||||||||||||||||||
USD | 208,268 | Toronto-Dominion Bank (The) | ILS | 765,000 | 05/24/2017 | (3,223 | ) | |||||||||||||||||
$ | (4,609 | ) |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 161 |
Table of Contents
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund (cont.)
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
DKK – Danish Krone
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
ILS – Israeli Shekel
JPY – Japanese Yen
NOK – Norwegian Krone
NZD – New Zealand Dollar
SEK – Swedish Krona
SGD – Singapore Dollar
USD – US Dollar
See Accompanying Notes to the Financial Statements.
162 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
EXCHANGE TRADED FUND – 99.9% | ||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (Cost $34,003,999)(a) | 807,457 | $ | 42,205,777 | |||||
Total Investments – 99.9% (Cost $34,003,999) | 42,205,777 | |||||||
Other Assets Less Liabilities – 0.1% | 37,359 | |||||||
NET ASSETS – 100.0% | $ | 42,243,136 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Fund. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 8,161,860 | ||
Aggregate gross unrealized depreciation | — | |||
Net unrealized appreciation | $ | 8,161,860 | ||
Federal income tax cost of investments | $ | 34,043,917 |
The FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund currently seeks its investment objective by investing a substantial portion of its assets in an affiliated FlexShares Fund. The Schedule of Investments of the affiliated FlexShares Fund is located elsewhere in this Report.
Investment in a company which was affiliated for the period ending April 30, 2017, was as follows:
Security | Value October 31, 2016 | Purchases at Cost | Sales at Cost | Value April 30, 2017 | Dividend Income | Realized Gain | ||||||||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | $ | 33,655,393 | $ | 8,115,903 | $ | 2,640,598 | $ | 42,205,777 | $ | 232,844 | $ | 343,956 |
Forward Foreign Currency Contracts
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2017:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
USD | 2,244,287 | Goldman Sachs & Co. | BRL | 7,120,000 | 05/24/2017 | $ | 31,681 | |||||||||||||||
USD | 755,697 | Citibank NA | CLP | 491,830,000 | 05/24/2017 | 18,952 | ||||||||||||||||
USD | 149,836 | Toronto-Dominion Bank (The) | EUR | 140,000 | 05/24/2017 | (2,791 | ) | |||||||||||||||
USD | 11,012,137 | Toronto-Dominion Bank (The) | HKD | 85,570,000 | 05/24/2017 | 4,535 | ||||||||||||||||
USD | 831,178 | Morgan Stanley | IDR | 11,098,470,000 | 05/24/2017 | 580 | ||||||||||||||||
USD | 3,474,055 | JPMorgan Chase Bank | INR | 225,560,000 | 05/24/2017 | (20,249 | ) | |||||||||||||||
USD | 7,227,754 | Goldman Sachs & Co. | KRW | 8,208,050,000 | 05/24/2017 | 12,591 | ||||||||||||||||
USD | 770,103 | Toronto-Dominion Bank (The) | MXN | 14,580,000 | 05/24/2017 | 4,922 | ||||||||||||||||
USD | 704,354 | Goldman Sachs & Co. | MYR | 3,090,000 | 05/24/2017 | (6,651 | ) | |||||||||||||||
USD | 637,616 | Goldman Sachs & Co. | PHP | 31,840,000 | 05/24/2017 | 1,089 | ||||||||||||||||
USD | 385,242 | Toronto-Dominion Bank (The) | PLN | 1,540,000 | 05/24/2017 | (11,430 | ) | |||||||||||||||
USD | 1,583,798 | JPMorgan Chase Bank | RUB | 90,010,000 | 05/24/2017 | 12,971 | ||||||||||||||||
USD | 1,081,458 | Toronto-Dominion Bank (The) | THB | 37,180,000 | 05/24/2017 | 6,750 | ||||||||||||||||
USD | 530,188 | Toronto-Dominion Bank (The) | TRY | 1,950,000 | 05/24/2017 | (15,002 | ) | |||||||||||||||
USD | 5,914,546 | Citibank NA | TWD | 179,400,000 | 05/24/2017 | (36,871 | ) | |||||||||||||||
USD | 2,441,603 | Toronto-Dominion Bank (The) | ZAR | 32,290,000 | 05/24/2017 | 38,919 | ||||||||||||||||
$ | 39,996 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 163 |
Table of Contents
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund (cont.)
Abbreviations:
BRL – Brazilian Real
CLP – Chilean Peso
EUR – Euro
HKD – Hong Kong Dollar
IDR – Indonesian Rupiah
INR – Indian Rupee
KRW – Korean Won
MXN – Mexican Peso
MYR – Malaysian Ringgit
PHP – Philippine Peso
PLN – Polish Zloty
RUB – Russian Ruble
THB – Thai Baht
TRY – Turkish Lira
TWD – Taiwan Dollar
USD – US Dollar
ZAR – South African Rand
See Accompanying Notes to the Financial Statements.
164 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® US Quality Large Cap Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.9% | ||||||||
Aerospace & Defense – 0.5% | ||||||||
L3 Technologies, Inc. | 704 | $ | 120,926 | |||||
Airlines – 1.5% | ||||||||
Alaska Air Group, Inc. | 1,264 | 107,554 | ||||||
Delta Air Lines, Inc. | 2,720 | 123,597 | ||||||
United Continental Holdings, Inc.* | 1,600 | 112,336 | ||||||
343,487 | ||||||||
Auto Components – 1.0% | ||||||||
Goodyear Tire & Rubber Co. (The) | 3,152 | 114,197 | ||||||
Lear Corp. | 816 | 116,411 | ||||||
230,608 | ||||||||
Banks – 5.7% | ||||||||
Bank of America Corp. | 22,704 | 529,912 | ||||||
Citigroup, Inc. | 7,968 | 471,068 | ||||||
Fifth Third Bancorp | 4,512 | 110,228 | ||||||
JPMorgan Chase & Co. | 944 | 82,128 | ||||||
SunTrust Banks, Inc. | 1,968 | 111,802 | ||||||
Wells Fargo & Co. | 480 | 25,843 | ||||||
1,330,981 | ||||||||
Beverages – 0.1% | ||||||||
Dr Pepper Snapple Group, Inc. | 288 | 26,395 | ||||||
Biotechnology – 1.0% | ||||||||
Amgen, Inc. | 1,472 | 240,407 | ||||||
Capital Markets – 3.8% | ||||||||
Goldman Sachs Group, Inc. (The) | 1,632 | 365,242 | ||||||
Morgan Stanley | 7,568 | 328,224 | ||||||
S&P Global, Inc. | 1,504 | 201,822 | ||||||
895,288 | ||||||||
Chemicals – 3.1% | ||||||||
Celanese Corp., Series A | 1,136 | 98,878 | ||||||
Dow Chemical Co. (The) | 5,888 | 369,766 | ||||||
LyondellBasell Industries NV, Class A | 1,808 | 153,246 | ||||||
Mosaic Co. (The) | 3,680 | 99,102 | ||||||
720,992 |
Shares | Value | |||||||
Communications Equipment – 2.0% | ||||||||
Cisco Systems, Inc. | 13,808 | $ | 470,439 | |||||
Construction & Engineering – 0.5% | ||||||||
Jacobs Engineering Group, Inc. | 2,336 | 128,293 | ||||||
Consumer Finance – 2.6% | ||||||||
American Express Co. | 3,216 | 254,868 | ||||||
Capital One Financial Corp. | 2,608 | 209,631 | ||||||
Discover Financial Services | 2,080 | 130,187 | ||||||
Synchrony Financial | 720 | 20,016 | ||||||
614,702 | ||||||||
Containers & Packaging – 0.5% | ||||||||
Packaging Corp. of America | 1,184 | 116,956 | ||||||
Diversified Financial Services – 0.2% | ||||||||
Berkshire Hathaway, Inc., Class B* | 336 | 55,511 | ||||||
Diversified Telecommunication Services – 1.7% | ||||||||
AT&T, Inc. | 7,008 | 277,727 | ||||||
CenturyLink, Inc. | 4,576 | 117,466 | ||||||
395,193 | ||||||||
Electric Utilities – 2.9% | ||||||||
Edison International | 1,952 | 156,101 | ||||||
Exelon Corp. | 5,008 | 173,427 | ||||||
FirstEnergy Corp. | 4,352 | 130,299 | ||||||
NextEra Energy, Inc. | 1,712 | 228,655 | ||||||
688,482 | ||||||||
Electrical Equipment – 0.9% | ||||||||
Eaton Corp. plc | 2,640 | 199,690 | ||||||
Electronic Equipment, Instruments & Components – 1.2% | ||||||||
Corning, Inc. | 6,112 | 176,331 | ||||||
Flex Ltd.* | 7,008 | 108,344 | ||||||
284,675 | ||||||||
Energy Equipment & Services – 1.1% | ||||||||
Baker Hughes, Inc. | 2,416 | 143,438 | ||||||
National Oilwell Varco, Inc. | 3,440 | 120,297 | ||||||
263,735 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 165 |
Table of Contents
FlexShares® US Quality Large Cap Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – 4.3% | ||||||||
Camden Property Trust | 1,376 | $ | 113,286 | |||||
Equity Residential | 2,320 | 149,826 | ||||||
GGP, Inc. | 5,440 | 117,558 | ||||||
Host Hotels & Resorts, Inc. | 7,296 | 130,963 | ||||||
Lamar Advertising Co., Class A | 1,600 | 115,312 | ||||||
Prologis, Inc. | 2,912 | 158,442 | ||||||
Vornado Realty Trust | 1,312 | 126,267 | ||||||
Welltower, Inc. | 1,296 | 92,586 | ||||||
1,004,240 | ||||||||
Food & Staples Retailing – 4.2% | ||||||||
CVS Health Corp. | 3,648 | 300,741 | ||||||
Sysco Corp. | 2,800 | 148,036 | ||||||
Walgreens Boots Alliance, Inc. | 944 | 81,694 | ||||||
Wal-Mart Stores, Inc. | 6,128 | 460,703 | ||||||
991,174 | ||||||||
Food Products – 2.8% | ||||||||
Archer-Daniels-Midland Co. | 3,504 | 160,308 | ||||||
Bunge Ltd. | 1,552 | 122,654 | ||||||
Ingredion, Inc. | 896 | 110,943 | ||||||
JM Smucker Co. (The) | 880 | 111,514 | ||||||
Tyson Foods, Inc., Class A | 2,320 | 149,083 | ||||||
654,502 | ||||||||
Gas Utilities – 0.6% | ||||||||
UGI Corp. | 2,832 | 142,053 | ||||||
Health Care Equipment & Supplies – 2.7% | ||||||||
Baxter International, Inc. | 3,056 | 170,158 | ||||||
Danaher Corp. | 3,568 | 297,321 | ||||||
IDEXX Laboratories, Inc.* | 960 | 161,021 | ||||||
628,500 | ||||||||
Health Care Providers & Services – 4.8% | ||||||||
Anthem, Inc. | 1,472 | 261,854 | ||||||
Express Scripts Holding Co.* | 3,472 | 212,973 | ||||||
Humana, Inc. | 848 | 188,239 | ||||||
UnitedHealth Group, Inc. | 2,640 | 461,683 | ||||||
1,124,749 | ||||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||
Darden Restaurants, Inc. | 1,696 | 144,482 |
Shares | Value | |||||||
Household Durables – 1.6% | ||||||||
DR Horton, Inc. | 3,072 | $ | 101,038 | |||||
Garmin Ltd. | 2,176 | 110,628 | ||||||
NVR, Inc.* | 32 | 67,560 | ||||||
PulteGroup, Inc. | 4,400 | 99,748 | ||||||
378,974 | ||||||||
Industrial Conglomerates – 2.7% | ||||||||
General Electric Co. | 17,968 | 520,892 | ||||||
Roper Technologies, Inc. | 560 | 122,472 | ||||||
643,364 | ||||||||
Insurance – 1.2% | ||||||||
Everest Re Group Ltd. | 592 | 149,012 | ||||||
Lincoln National Corp. | 576 | 37,976 | ||||||
Unum Group | 1,952 | 90,436 | ||||||
277,424 | ||||||||
Internet & Direct Marketing Retail – 0.4% | ||||||||
Amazon.com, Inc.* | 112 | 103,599 | ||||||
Internet Software & Services – 2.7% | ||||||||
Alphabet, Inc., Class A* | 16 | 14,792 | ||||||
Alphabet, Inc., Class C* | 240 | 217,431 | ||||||
eBay, Inc.* | 5,888 | 196,718 | ||||||
Facebook, Inc., Class A* | 432 | 64,908 | ||||||
VeriSign, Inc.* | 1,472 | 130,890 | ||||||
624,739 | ||||||||
IT Services – 4.1% | ||||||||
Accenture plc, Class A | 2,896 | 351,285 | ||||||
Amdocs Ltd. | 1,728 | 105,823 | ||||||
International Business Machines Corp. | 2,544 | 407,778 | ||||||
Western Union Co. (The) | 5,040 | 100,094 | ||||||
964,980 | ||||||||
Machinery – 2.9% | ||||||||
Cummins, Inc. | 864 | 130,412 | ||||||
Illinois Tool Works, Inc. | 1,664 | 229,782 | ||||||
Ingersoll-Rand plc | 1,840 | 163,300 | ||||||
Parker-Hannifin Corp. | 976 | 156,941 | ||||||
680,435 | ||||||||
Media – 1.5% | ||||||||
Discovery Communications, Inc., Class A* | 3,984 | 114,659 |
See Accompanying Notes to the Financial Statements.
166 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® US Quality Large Cap Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Discovery Communications, Inc., Class C* | 4,544 | $ | 127,141 | |||||
Scripps Networks Interactive, Inc., Class A | 1,408 | 105,206 | ||||||
347,006 | ||||||||
Metals & Mining – 1.2% | ||||||||
Nucor Corp. | 2,384 | 146,211 | ||||||
Steel Dynamics, Inc. | 3,712 | 134,151 | ||||||
280,362 | ||||||||
Multiline Retail – 1.2% | ||||||||
Kohl’s Corp. | 2,480 | 96,794 | ||||||
Target Corp. | 3,104 | 173,359 | ||||||
270,153 | ||||||||
Multi-Utilities – 0.5% | ||||||||
DTE Energy Co. | 1,232 | 128,855 | ||||||
Oil, Gas & Consumable Fuels – 3.3% | ||||||||
Anadarko Petroleum Corp. | 2,944 | 167,867 | ||||||
Chevron Corp. | 1,104 | 117,797 | ||||||
Exxon Mobil Corp. | 2,784 | 227,313 | ||||||
Marathon Oil Corp. | 6,608 | 98,261 | ||||||
Valero Energy Corp. | 2,592 | 167,469 | ||||||
778,707 | ||||||||
Pharmaceuticals – 4.9% | ||||||||
Johnson & Johnson | 4,208 | 519,562 | ||||||
Merck & Co., Inc. | 4,480 | 279,238 | ||||||
Pfizer, Inc. | 10,192 | 345,713 | ||||||
1,144,513 | ||||||||
Semiconductors & Semiconductor Equipment – 5.7% | ||||||||
Applied Materials, Inc. | 6,112 | 248,208 | ||||||
Intel Corp. | 12,464 | 450,574 | ||||||
KLA-Tencor Corp. | 1,024 | 100,577 | ||||||
Lam Research Corp. | 1,232 | 178,455 | ||||||
Microchip Technology, Inc. | 1,952 | 147,532 | ||||||
NVIDIA Corp. | 1,152 | 120,154 | ||||||
Texas Instruments, Inc. | 1,040 | 82,347 | ||||||
1,327,847 |
Shares | Value | |||||||
Software – 2.8% | ||||||||
CA, Inc. | 3,728 | $ | 122,390 | |||||
Microsoft Corp. | 3,840 | 262,887 | ||||||
Symantec Corp. | 4,880 | 154,354 | ||||||
VMware, Inc., Class A* | 1,360 | 128,003 | ||||||
667,634 | ||||||||
Specialty Retail – 3.9% | ||||||||
Bed Bath & Beyond, Inc. | 2,816 | 109,120 | ||||||
Best Buy Co., Inc. | 2,944 | 152,529 | ||||||
Gap, Inc. (The) | 5,232 | 137,078 | ||||||
Home Depot, Inc. (The) | 3,264 | 509,510 | ||||||
908,237 | ||||||||
Technology Hardware, Storage & Peripherals – 5.1% | ||||||||
Apple, Inc. | 3,872 | 556,213 | ||||||
HP, Inc. | 8,496 | 159,895 | ||||||
NetApp, Inc. | 2,880 | 114,768 | ||||||
Seagate Technology plc | 2,528 | 106,505 | ||||||
Western Digital Corp. | 1,904 | 169,589 | ||||||
Xerox Corp. | 12,944 | 93,067 | ||||||
1,200,037 | ||||||||
Textiles, Apparel & Luxury Goods – 0.8% | ||||||||
Michael Kors Holdings Ltd.* | 2,400 | 89,592 | ||||||
PVH Corp. | 944 | 95,372 | ||||||
184,964 | ||||||||
Tobacco – 1.8% | ||||||||
Altria Group, Inc. | 5,968 | 428,383 | ||||||
Trading Companies & Distributors – 1.3% | ||||||||
AerCap Holdings NV* | 2,352 | 108,215 | ||||||
HD Supply Holdings, Inc.* | 2,640 | 106,392 | ||||||
United Rentals, Inc.* | 912 | 100,010 | ||||||
314,617 | ||||||||
Total Common Stocks (Cost $23,145,539) | 23,471,290 | |||||||
Total Investments – 99.9% (Cost $23,145,539) | 23,471,290 | |||||||
Other Assets Less Liabilities – 0.1% | 31,844 | |||||||
NET ASSETS – 100.0% | $ | 23,503,134 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 167 |
Table of Contents
FlexShares® US Quality Large Cap Index Fund (cont.)
* | Non-income producing security. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 766,366 | ||
Aggregate gross unrealized depreciation | (440,547 | ) | ||
Net unrealized appreciation | $ | 325,819 | ||
Federal income tax cost of investments | $ | 23,145,471 |
See Accompanying Notes to the Financial Statements.
168 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® STOXX® US ESG Impact Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.5% | ||||||||
Aerospace & Defense – 0.9% | ||||||||
Arconic, Inc. | 135 | $ | 3,690 | |||||
L3 Technologies, Inc. | 30 | 5,153 | ||||||
United Technologies Corp. | 561 | 66,753 | ||||||
75,596 | ||||||||
Air Freight & Logistics – 1.1% | ||||||||
Expeditors International of Washington, Inc. | 138 | 7,740 | ||||||
FedEx Corp. | 138 | 26,179 | ||||||
United Parcel Service, Inc., Class B | 570 | 61,252 | ||||||
95,171 | ||||||||
Airlines – 0.8% | ||||||||
Alaska Air Group, Inc. | 111 | 9,445 | ||||||
Delta Air Lines, Inc. | 402 | 18,267 | ||||||
Southwest Airlines Co. | 414 | 23,275 | ||||||
United Continental Holdings, Inc.* | 216 | 15,165 | ||||||
66,152 | ||||||||
Auto Components – 0.2% | ||||||||
Autoliv, Inc. | 48 | 4,809 | ||||||
BorgWarner, Inc. | 57 | 2,410 | ||||||
Delphi Automotive plc | 69 | 5,548 | ||||||
Goodyear Tire & Rubber Co. (The) | 102 | 3,695 | ||||||
16,462 | ||||||||
Automobiles – 0.6% | ||||||||
Ford Motor Co. | 1,548 | 17,756 | ||||||
Tesla, Inc.* | 102 | 32,035 | ||||||
49,791 | ||||||||
Banks – 8.3% | ||||||||
Bank of America Corp. | 8,337 | 194,585 | ||||||
Citigroup, Inc. | 2,352 | 139,050 | ||||||
Citizens Financial Group, Inc. | 231 | 8,480 | ||||||
Comerica, Inc. | 153 | 10,817 | ||||||
First Republic Bank | 84 | 7,767 | ||||||
JPMorgan Chase & Co. | 2,955 | 257,085 | ||||||
KeyCorp | 783 | 14,282 | ||||||
PNC Financial Services Group, Inc. (The) | 147 | 17,603 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Regions Financial Corp. | 372 | $ | 5,115 | |||||
SVB Financial Group* | 21 | 3,695 | ||||||
US Bancorp | 870 | 44,614 | ||||||
703,093 | ||||||||
Beverages – 2.8% | ||||||||
Coca-Cola Co. (The) | 2,682 | 115,728 | ||||||
Coca-Cola European Partners plc | 135 | 5,214 | ||||||
Dr Pepper Snapple Group, Inc. | 78 | 7,149 | ||||||
PepsiCo, Inc. | 984 | 111,467 | ||||||
239,558 | ||||||||
Biotechnology – 1.0% | ||||||||
AbbVie, Inc. | 468 | 30,860 | ||||||
Alkermes plc* | 36 | 2,097 | ||||||
Amgen, Inc. | 309 | 50,466 | ||||||
83,423 | ||||||||
Building Products – 0.1% | ||||||||
Fortune Brands Home & Security, Inc. | 66 | 4,207 | ||||||
Masco Corp. | 171 | 6,330 | ||||||
10,537 | ||||||||
Capital Markets – 1.9% | ||||||||
Bank of New York Mellon Corp. (The) | 720 | 33,883 | ||||||
E*TRADE Financial Corp.* | 72 | 2,488 | ||||||
Franklin Resources, Inc. | 123 | 5,303 | ||||||
Goldman Sachs Group, Inc. (The) | 258 | 57,740 | ||||||
Morgan Stanley | 420 | 18,215 | ||||||
MSCI, Inc. | 39 | 3,913 | ||||||
Nasdaq, Inc. | 45 | 3,099 | ||||||
S&P Global, Inc. | 219 | 29,388 | ||||||
SEI Investments Co. | 123 | 6,237 | ||||||
TD Ameritrade Holding Corp. | 96 | 3,674 | ||||||
163,940 | ||||||||
Chemicals – 1.8% | ||||||||
Air Products & Chemicals, Inc. | 78 | 10,959 | ||||||
Celanese Corp., Series A | 90 | 7,834 | ||||||
Eastman Chemical Co. | 60 | 4,785 | ||||||
Ecolab, Inc. | 153 | 19,751 | ||||||
EI du Pont de Nemours & Co. | 261 | 20,815 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 169 |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
International Flavors & Fragrances, Inc. | 48 | $ | 6,652 | |||||
LyondellBasell Industries NV, Class A | 135 | 11,443 | ||||||
Monsanto Co. | 243 | 28,336 | ||||||
PPG Industries, Inc. | 93 | 10,215 | ||||||
Praxair, Inc. | 75 | 9,373 | ||||||
Sherwin-Williams Co. (The) | 54 | 18,073 | ||||||
148,236 | ||||||||
Commercial Services & Supplies – 0.1% | ||||||||
Cintas Corp. | 54 | 6,613 | ||||||
Stericycle, Inc.* | 21 | 1,792 | ||||||
8,405 | ||||||||
Communications Equipment – 1.6% | ||||||||
Cisco Systems, Inc. | 3,444 | 117,337 | ||||||
Juniper Networks, Inc. | 228 | 6,856 | ||||||
Motorola Solutions, Inc. | 108 | 9,285 | ||||||
133,478 | ||||||||
Consumer Finance – 0.7% | ||||||||
Ally Financial, Inc. | 237 | 4,693 | ||||||
American Express Co. | 309 | 24,488 | ||||||
Capital One Financial Corp. | 132 | 10,610 | ||||||
Synchrony Financial | 669 | 18,598 | ||||||
58,389 | ||||||||
Containers & Packaging – 0.3% | ||||||||
Ball Corp. | 84 | 6,459 | ||||||
International Paper Co. | 99 | 5,343 | ||||||
Packaging Corp. of America | 69 | 6,816 | ||||||
Sealed Air Corp. | 90 | 3,962 | ||||||
WestRock Co. | 87 | 4,659 | ||||||
27,239 | ||||||||
Diversified Financial Services – 1.6% | ||||||||
Berkshire Hathaway, Inc., Class B* | 837 | 138,281 | ||||||
Diversified Telecommunication Services – 3.9% | ||||||||
AT&T, Inc. | 4,221 | 167,278 | ||||||
CenturyLink, Inc. | 369 | 9,472 | ||||||
Verizon Communications, Inc. | 3,363 | 154,396 | ||||||
331,146 |
Shares | Value | |||||||
Electric Utilities – 1.3% | ||||||||
Duke Energy Corp. | 369 | $ | 30,443 | |||||
Eversource Energy | 183 | 10,870 | ||||||
NextEra Energy, Inc. | 252 | 33,657 | ||||||
PG&E Corp. | 219 | 14,684 | ||||||
Pinnacle West Capital Corp. | 36 | 3,063 | ||||||
PPL Corp. | 210 | 8,003 | ||||||
Westar Energy, Inc. | 24 | 1,249 | ||||||
Xcel Energy, Inc. | 222 | 10,001 | ||||||
111,970 | ||||||||
Electrical Equipment – 0.4% | ||||||||
AMETEK, Inc. | 111 | 6,349 | ||||||
Eaton Corp. plc | 315 | 23,827 | ||||||
30,176 | ||||||||
Electronic Equipment, Instruments & Components – 0.3% | ||||||||
Amphenol Corp., Class A | 117 | 8,460 | ||||||
Flex Ltd.* | 102 | 1,577 | ||||||
TE Connectivity Ltd. | 159 | 12,302 | ||||||
22,339 | ||||||||
Energy Equipment & Services – 1.6% | ||||||||
Baker Hughes, Inc. | 336 | 19,948 | ||||||
Halliburton Co. | 738 | 33,860 | ||||||
Schlumberger Ltd. | 1,149 | 83,406 | ||||||
137,214 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.6% | ||||||||
American Tower Corp. | 189 | 23,803 | ||||||
Federal Realty Investment Trust | 15 | 1,963 | ||||||
HCP, Inc. | 177 | 5,549 | ||||||
Host Hotels & Resorts, Inc. | 591 | 10,608 | ||||||
Iron Mountain, Inc. | 201 | 6,987 | ||||||
Prologis, Inc. | 423 | 23,015 | ||||||
Public Storage | 60 | 12,563 | ||||||
Ventas, Inc. | 90 | 5,761 | ||||||
Vornado Realty Trust | 99 | 9,528 | ||||||
Welltower, Inc. | 177 | 12,645 | ||||||
Weyerhaeuser Co. | 606 | 20,525 | ||||||
132,947 | ||||||||
Food & Staples Retailing – 2.5% | ||||||||
Costco Wholesale Corp. | 177 | 31,421 | ||||||
CVS Health Corp. | 879 | 72,465 |
See Accompanying Notes to the Financial Statements.
170 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
Kroger Co. (The) | 771 | $ | 22,860 | |||||
Sysco Corp. | 288 | 15,227 | ||||||
Walgreens Boots Alliance, Inc. | 780 | 67,501 | ||||||
209,474 | ||||||||
Food Products – 1.7% | ||||||||
Archer-Daniels-Midland Co. | 303 | 13,862 | ||||||
Bunge Ltd. | 72 | 5,690 | ||||||
Campbell Soup Co. | 108 | 6,214 | ||||||
Conagra Brands, Inc. | 228 | 8,842 | ||||||
General Mills, Inc. | 225 | 12,940 | ||||||
Hershey Co. (The) | 84 | 9,089 | ||||||
Hormel Foods Corp. | 168 | 5,893 | ||||||
Ingredion, Inc. | 15 | 1,857 | ||||||
JM Smucker Co. (The) | 90 | 11,405 | ||||||
Kellogg Co. | 99 | 7,029 | ||||||
McCormick & Co., Inc. (Non-Voting) | 81 | 8,092 | ||||||
Mondelez International, Inc., Class A | 1,056 | 47,552 | ||||||
Tyson Foods, Inc., Class A | 75 | 4,820 | ||||||
143,285 | ||||||||
Health Care Equipment & Supplies – 2.6% | ||||||||
Abbott Laboratories | 1,425 | 62,187 | ||||||
Baxter International, Inc. | 390 | 21,715 | ||||||
Becton Dickinson and Co. | 126 | 23,558 | ||||||
Edwards Lifesciences Corp.* | 144 | 15,792 | ||||||
Hologic, Inc.* | 177 | 7,992 | ||||||
IDEXX Laboratories, Inc.* | 33 | 5,535 | ||||||
Medtronic plc | 936 | 77,772 | ||||||
Varian Medical Systems, Inc.* | 24 | 2,178 | ||||||
216,729 | ||||||||
Health Care Providers & Services – 0.9% | ||||||||
AmerisourceBergen Corp. | 78 | 6,400 | ||||||
Anthem, Inc. | 180 | 32,020 | ||||||
Cigna Corp. | 177 | 27,678 | ||||||
Humana, Inc. | 45 | 9,989 | ||||||
76,087 | ||||||||
Hotels, Restaurants & Leisure – 2.9% | ||||||||
Carnival Corp. | 297 | 18,346 | ||||||
Darden Restaurants, Inc. | 45 | 3,834 |
Shares | Value | |||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Las Vegas Sands Corp. | 180 | $ | 10,618 | |||||
Marriott International, Inc., Class A | 273 | 25,777 | ||||||
McDonald’s Corp. | 681 | 95,292 | ||||||
Royal Caribbean Cruises Ltd. | 138 | 14,711 | ||||||
Starbucks Corp. | 792 | 47,567 | ||||||
Wyndham Worldwide Corp. | 84 | 8,006 | ||||||
Yum Brands, Inc. | 210 | 13,807 | ||||||
Yum China Holdings, Inc.* | 93 | 3,173 | ||||||
241,131 | ||||||||
Household Durables – 0.2% | ||||||||
Mohawk Industries, Inc.* | 21 | 4,931 | ||||||
Newell Brands, Inc. | 132 | 6,302 | ||||||
Whirlpool Corp. | 33 | 6,127 | ||||||
17,360 | ||||||||
Household Products – 3.3% | ||||||||
Church & Dwight Co., Inc. | 180 | 8,915 | ||||||
Clorox Co. (The) | 87 | 11,631 | ||||||
Colgate-Palmolive Co. | 621 | 44,737 | ||||||
Kimberly-Clark Corp. | 195 | 25,301 | ||||||
Procter & Gamble Co. (The) | 2,109 | 184,179 | ||||||
274,763 | ||||||||
Independent Power and Renewable Electricity Producers – 0.0%(a) | ||||||||
AES Corp. | 318 | 3,597 | ||||||
Industrial Conglomerates – 3.7% | ||||||||
3M Co. | 495 | 96,936 | ||||||
General Electric Co. | 7,299 | 211,598 | ||||||
308,534 | ||||||||
Insurance – 2.2% | ||||||||
Aflac, Inc. | 312 | 23,362 | ||||||
Alleghany Corp.* | 6 | 3,664 | ||||||
Allstate Corp. (The) | 192 | 15,608 | ||||||
American International Group, Inc. | 291 | 17,725 | ||||||
Arthur J Gallagher & Co. | 138 | 7,702 | ||||||
Hartford Financial Services Group, Inc. (The) | 273 | 13,202 | ||||||
Loews Corp. | 165 | 7,692 | ||||||
MetLife, Inc. | 639 | 33,107 | ||||||
Principal Financial Group, Inc. | 225 | 14,654 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 171 |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Prudential Financial, Inc. | 186 | $ | 19,908 | |||||
Reinsurance Group of America, Inc. | 39 | 4,877 | ||||||
Travelers Cos., Inc. (The) | 111 | 13,504 | ||||||
Unum Group | 78 | 3,614 | ||||||
Willis Towers Watson plc | 39 | 5,172 | ||||||
183,791 | ||||||||
Internet & Direct Marketing Retail – 3.3% | ||||||||
Amazon.com, Inc.* | 273 | 252,522 | ||||||
Priceline Group, Inc. (The)* | 12 | 22,162 | ||||||
274,684 | ||||||||
Internet Software & Services – 4.7% | ||||||||
Alphabet, Inc., Class C* | 213 | 192,970 | ||||||
Facebook, Inc., Class A* | 1,293 | 194,273 | ||||||
Yahoo!, Inc.* | 243 | 11,715 | ||||||
398,958 | ||||||||
IT Services – 3.6% | ||||||||
Accenture plc, Class A | 543 | 65,866 | ||||||
Amdocs Ltd. | 63 | 3,858 | ||||||
Automatic Data Processing, Inc. | 243 | 25,391 | ||||||
Cognizant Technology Solutions Corp., Class A* | 246 | 14,816 | ||||||
International Business Machines Corp. | 717 | 114,928 | ||||||
Jack Henry & Associates, Inc. | 63 | 6,106 | ||||||
Mastercard, Inc., Class A | 525 | 61,068 | ||||||
Total System Services, Inc. | 75 | 4,298 | ||||||
Western Union Co. (The) | 381 | 7,567 | ||||||
303,898 | ||||||||
Life Sciences Tools & Services – 0.7% | ||||||||
Agilent Technologies, Inc. | 204 | 11,230 | ||||||
Mettler-Toledo International, Inc.* | 15 | 7,702 | ||||||
Thermo Fisher Scientific, Inc. | 222 | 36,703 | ||||||
55,635 | ||||||||
Machinery – 1.7% | ||||||||
Caterpillar, Inc. | 315 | 32,212 | ||||||
Cummins, Inc. | 117 | 17,660 | ||||||
Deere & Co. | 186 | 20,759 | ||||||
Dover Corp. | 33 | 2,603 |
Shares | Value | |||||||
Machinery – (continued) | ||||||||
Fortive Corp. | 99 | $ | 6,263 | |||||
Illinois Tool Works, Inc. | 213 | 29,413 | ||||||
Ingersoll-Rand plc | 222 | 19,703 | ||||||
Pentair plc | 123 | 7,935 | ||||||
Xylem, Inc. | 81 | 4,164 | ||||||
140,712 | ||||||||
Media – 1.2% | ||||||||
Viacom, Inc., Class B | 96 | 4,085 | ||||||
Walt Disney Co. (The) | 873 | 100,919 | ||||||
105,004 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.1% | ||||||||
AGNC Investment Corp. | 96 | 2,023 | ||||||
Annaly Capital Management, Inc. | 699 | 8,255 | ||||||
10,278 | ||||||||
Multiline Retail – 0.6% | ||||||||
Dollar General Corp. | 165 | 11,997 | ||||||
Kohl’s Corp. | 117 | 4,567 | ||||||
Macy’s, Inc. | 159 | 4,646 | ||||||
Target Corp. | 459 | 25,635 | ||||||
46,845 | ||||||||
Multi-Utilities – 0.3% | ||||||||
CenterPoint Energy, Inc. | 132 | 3,766 | ||||||
CMS Energy Corp. | 147 | 6,674 | ||||||
Consolidated Edison, Inc. | 147 | 11,654 | ||||||
SCANA Corp. | 66 | 4,376 | ||||||
26,470 | ||||||||
Oil, Gas & Consumable Fuels – 6.4% | ||||||||
Chevron Corp. | 1,557 | 166,132 | ||||||
ConocoPhillips | 513 | 24,578 | ||||||
Devon Energy Corp. | 276 | 10,899 | ||||||
EQT Corp. | 84 | 4,884 | ||||||
Exxon Mobil Corp. | 3,423 | 279,488 | ||||||
Hess Corp. | 219 | 10,694 | ||||||
Newfield Exploration Co.* | 99 | 3,427 | ||||||
Noble Energy, Inc. | 111 | 3,589 | ||||||
Phillips 66 | 129 | 10,263 | ||||||
Pioneer Natural Resources Co. | 45 | 7,784 |
See Accompanying Notes to the Financial Statements.
172 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Williams Cos., Inc. (The) | 489 | $ | 14,978 | |||||
536,716 | ||||||||
Personal Products – 0.2% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 204 | 17,776 | ||||||
Pharmaceuticals – 4.0% | ||||||||
Allergan plc | 153 | 37,311 | ||||||
Eli Lilly & Co. | 684 | 56,129 | ||||||
Merck & Co., Inc. | 1,509 | 94,056 | ||||||
Perrigo Co. plc | 75 | 5,545 | ||||||
Pfizer, Inc. | 4,164 | 141,243 | ||||||
334,284 | ||||||||
Professional Services – 0.1% | ||||||||
Verisk Analytics, Inc.* | 63 | 5,217 | ||||||
Real Estate Management & Development – 0.1% | ||||||||
CBRE Group, Inc., Class A* | 258 | 9,239 | ||||||
Semiconductors & Semiconductor Equipment – 3.2% | ||||||||
Analog Devices, Inc. | 96 | 7,315 | ||||||
Intel Corp. | 3,918 | 141,636 | ||||||
Lam Research Corp. | 66 | 9,560 | ||||||
Microchip Technology, Inc. | 147 | 11,110 | ||||||
NVIDIA Corp. | 294 | 30,664 | ||||||
Texas Instruments, Inc. | 822 | 65,086 | ||||||
Xilinx, Inc. | 117 | 7,384 | ||||||
272,755 | ||||||||
Software – 6.4% | ||||||||
Adobe Systems, Inc.* | 273 | 36,511 | ||||||
Autodesk, Inc.* | 180 | 16,213 | ||||||
CA, Inc. | 87 | 2,856 | ||||||
Check Point Software Technologies Ltd.* | 75 | 7,801 | ||||||
Dell Technologies, Inc., Class V* | 57 | 3,825 | ||||||
Intuit, Inc. | 165 | 20,660 | ||||||
Microsoft Corp. | 6,438 | 440,745 | ||||||
Mobileye NV* | 117 | 7,245 | ||||||
ServiceNow, Inc.* | 42 | 3,968 | ||||||
Splunk, Inc.* | 51 | 3,280 | ||||||
543,104 |
Shares | Value | |||||||
Specialty Retail – 1.4% | ||||||||
Best Buy Co., Inc. | 222 | $ | 11,502 | |||||
Foot Locker, Inc. | 51 | 3,944 | ||||||
Lowe’s Cos., Inc. | 609 | 51,692 | ||||||
Tiffany & Co. | 69 | 6,324 | ||||||
TJX Cos., Inc. (The) | 450 | 35,388 | ||||||
Ulta Beauty, Inc.* | 45 | 12,665 | ||||||
121,515 | ||||||||
Technology Hardware, Storage & Peripherals – 5.8% | ||||||||
Apple, Inc. | 3,006 | 431,812 | ||||||
Hewlett Packard Enterprise Co. | 1,131 | 21,070 | ||||||
HP, Inc. | 1,269 | 23,883 | ||||||
Seagate Technology plc | 240 | 10,111 | ||||||
486,876 | ||||||||
Textiles, Apparel & Luxury Goods – 0.7% | ||||||||
Hanesbrands, Inc. | 195 | 4,253 | ||||||
Michael Kors Holdings Ltd.* | 102 | 3,808 | ||||||
NIKE, Inc., Class B | 744 | 41,225 | ||||||
PVH Corp. | 27 | 2,728 | ||||||
VF Corp. | 126 | 6,883 | ||||||
58,897 | ||||||||
Tobacco – 1.8% | ||||||||
Altria Group, Inc. | 1,077 | 77,307 | ||||||
Philip Morris International, Inc. | 642 | 71,159 | ||||||
148,466 | ||||||||
Trading Companies & Distributors – 0.2% | ||||||||
Fastenal Co. | 174 | 7,774 | ||||||
HD Supply Holdings, Inc.* | 132 | 5,320 | ||||||
13,094 | ||||||||
Water Utilities – 0.1% | ||||||||
American Water Works Co., Inc. | 135 | 10,768 | ||||||
Total Common Stocks (Cost $7,801,347) | 8,379,485 | |||||||
Total Investments – 99.5% (Cost $7,801,347) | 8,379,485 | |||||||
Other Assets Less Liabilities – 0.5% | 41,225 | |||||||
NET ASSETS – 100.0% | $ | 8,420,710 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 173 |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
* | Non-income producing security. |
(a) | Represents less than 0.05% of net assets. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 714,053 | ||
Aggregate gross unrealized depreciation | (146,618 | ) | ||
Net unrealized appreciation | $ | 567,435 | ||
Federal income tax cost of investments | $ | 7,812,050 |
See Accompanying Notes to the Financial Statements.
174 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® STOXX® Global ESG Impact Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.0% | ||||||||
Aerospace & Defense – 0.6% | ||||||||
Arconic, Inc. | 96 | $ | 2,624 | |||||
L3 Technologies, Inc. | 30 | 5,153 | ||||||
QinetiQ Group plc | 190 | 722 | ||||||
United Technologies Corp. | 316 | 37,601 | ||||||
Zodiac Aerospace | 62 | 1,505 | ||||||
47,605 | ||||||||
Air Freight & Logistics – 0.6% | ||||||||
Bollore SA | 640 | 2,603 | ||||||
Deutsche Post AG (Registered) | 516 | 18,542 | ||||||
Expeditors International of Washington, Inc. | 86 | 4,824 | ||||||
FedEx Corp. | 56 | 10,623 | ||||||
United Parcel Service, Inc., Class B | 158 | 16,979 | ||||||
53,571 | ||||||||
Airlines – 0.5% | ||||||||
Alaska Air Group, Inc. | 58 | 4,935 | ||||||
Delta Air Lines, Inc. | 120 | 5,453 | ||||||
Deutsche Lufthansa AG (Registered)* | 90 | 1,553 | ||||||
International Consolidated Airlines Group SA, DI | 430 | 3,115 | ||||||
Qantas Airways Ltd. | 1,042 | 3,304 | ||||||
Southwest Airlines Co. | 246 | 13,830 | ||||||
United Continental Holdings, Inc.* | 114 | 8,004 | ||||||
40,194 | ||||||||
Auto Components – 0.8% | ||||||||
Autoliv, Inc. | 22 | 2,204 | ||||||
BorgWarner, Inc. | 70 | 2,960 | ||||||
Bridgestone Corp. | 800 | 33,358 | ||||||
Cie Generale des Etablissements Michelin | 62 | 8,099 | ||||||
Continental AG | 30 | 6,713 | ||||||
GKN plc | 580 | 2,693 | ||||||
Goodyear Tire & Rubber Co. (The) | 70 | 2,536 | ||||||
NGK Spark Plug Co. Ltd. | 200 | 4,326 | ||||||
Nokian Renkaat OYJ | 24 | 1,032 | ||||||
Valeo SA | 82 | 5,893 | ||||||
69,814 |
Shares | Value | |||||||
Automobiles – 1.3% | ||||||||
Bayerische Motoren Werke AG | 172 | $ | 16,417 | |||||
Daimler AG (Registered) | 438 | 32,624 | ||||||
Ferrari NV | 50 | 3,760 | ||||||
Fiat Chrysler Automobiles NV* | 180 | 2,036 | ||||||
Ford Motor Co. | 384 | 4,404 | ||||||
Honda Motor Co. Ltd. | 1,200 | 34,793 | ||||||
Peugeot SA* | 172 | 3,603 | ||||||
Porsche Automobil Holding SE (Preference) | 22 | 1,287 | ||||||
Renault SA | 72 | 6,712 | ||||||
105,636 | ||||||||
Banks – 10.1% | ||||||||
ABN AMRO Group NV, CVA(a) | 40 | 1,050 | ||||||
Australia & New Zealand Banking Group Ltd. | 1,159 | 28,395 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 1,148 | 9,187 | ||||||
Banco de Sabadell SA | 344 | 662 | ||||||
Banco Popular Espanol SA* | 726 | 509 | ||||||
Banco Santander SA | 3,924 | 25,583 | ||||||
Bank of America Corp. | 5,884 | 137,333 | ||||||
Bank of Ireland* | 4,516 | 1,136 | ||||||
Bank of Montreal | 119 | 8,413 | ||||||
Barclays plc | 4,960 | 13,620 | ||||||
BNP Paribas SA | 414 | 29,204 | ||||||
CaixaBank SA | 938 | 4,258 | ||||||
Citigroup, Inc. | 1,688 | 99,795 | ||||||
Comerica, Inc. | 68 | 4,808 | ||||||
Commerzbank AG* | 304 | 2,978 | ||||||
Commonwealth Bank of Australia | 822 | 53,728 | ||||||
Concordia Financial Group Ltd. | 800 | 3,676 | ||||||
Credit Agricole SA | 284 | 4,221 | ||||||
Danske Bank A/S | 202 | 7,335 | ||||||
DBS Group Holdings Ltd. | 8 | 111 | ||||||
DNB ASA | 272 | 4,258 | ||||||
Erste Group Bank AG* | 92 | 3,288 | ||||||
First Republic Bank | 18 | 1,664 | ||||||
Hang Seng Bank Ltd. | 200 | 4,055 | ||||||
HSBC Holdings plc | 6,780 | 55,831 | ||||||
ING Groep NV | 868 | 14,126 | ||||||
Intesa Sanpaolo SpA | 3,312 | 9,644 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 175 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
JPMorgan Chase & Co. | 1,020 | $ | 88,740 | |||||
KBC Group NV | 38 | 2,743 | ||||||
KeyCorp | 188 | 3,429 | ||||||
Lloyds Banking Group plc | 27,382 | 24,514 | ||||||
National Australia Bank Ltd. | 828 | 21,053 | ||||||
National Bank of Canada | 64 | 2,483 | ||||||
Natixis SA | 88 | 612 | ||||||
Nordea Bank AB | 914 | 11,251 | ||||||
PNC Financial Services Group, Inc. (The) | 84 | 10,059 | ||||||
Resona Holdings, Inc. | 2,000 | 11,120 | ||||||
Royal Bank of Canada | 244 | 16,680 | ||||||
Royal Bank of Scotland Group plc* | 896 | 3,077 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 570 | 6,566 | ||||||
Societe Generale SA | 292 | 15,965 | ||||||
Standard Chartered plc* | 1,034 | 9,648 | ||||||
Svenska Handelsbanken AB, Class A | 356 | 5,054 | ||||||
Swedbank AB, Class A | 214 | 5,073 | ||||||
Toronto-Dominion Bank (The) | 930 | 43,687 | ||||||
UniCredit SpA* | 721 | 11,730 | ||||||
Unione di Banche Italiane SpA | 190 | 800 | ||||||
Westpac Banking Corp. | 1,094 | 28,684 | ||||||
851,836 | ||||||||
Beverages – 2.7% | ||||||||
Anheuser-Busch InBev SA/NV | 180 | 20,268 | ||||||
Asahi Group Holdings Ltd. | 400 | 15,089 | ||||||
Britvic plc | 140 | 1,204 | ||||||
Carlsberg A/S, Class B | 46 | 4,590 | ||||||
Coca-Cola Amatil Ltd. | 144 | 1,009 | ||||||
Coca-Cola Co. (The) | 1,408 | 60,755 | ||||||
Coca-Cola European Partners plc | 110 | 4,248 | ||||||
Coca-Cola HBC AG, DI* | 104 | 2,882 | ||||||
Diageo plc | 854 | 24,821 | ||||||
Heineken Holding NV | 26 | 2,178 | ||||||
Heineken NV | 62 | 5,526 | ||||||
Kirin Holdings Co. Ltd. | 600 | 11,659 | ||||||
PepsiCo, Inc. | 514 | 58,226 | ||||||
Pernod Ricard SA | 82 | 10,255 | ||||||
Thai Beverage PCL | 1,000 | 662 | ||||||
223,372 |
Shares | Value | |||||||
Biotechnology – 1.5% | ||||||||
AbbVie, Inc. | 544 | $ | 35,871 | |||||
Actelion Ltd. (Registered)* | 30 | 8,004 | ||||||
Alkermes plc* | 28 | 1,631 | ||||||
Amgen, Inc. | 292 | 47,690 | ||||||
CSL Ltd. | 178 | 17,645 | ||||||
Grifols SA | 48 | 1,289 | ||||||
Shire plc | 270 | 15,848 | ||||||
127,978 | ||||||||
Building Products – 0.9% | ||||||||
Asahi Glass Co. Ltd. | 2,000 | 17,332 | ||||||
Assa Abloy AB, Class B | 286 | 6,198 | ||||||
Cie de Saint-Gobain | 152 | 8,202 | ||||||
Daikin Industries Ltd. | 300 | 29,133 | ||||||
Geberit AG (Registered) | 10 | 4,553 | ||||||
LIXIL Group Corp. | 400 | 9,987 | ||||||
Masco Corp. | 96 | 3,554 | ||||||
Nibe Industrier AB, Class B | 86 | 762 | ||||||
79,721 | ||||||||
Capital Markets – 1.9% | ||||||||
3i Group plc | 496 | 5,092 | ||||||
Aberdeen Asset Management plc | 524 | 1,891 | ||||||
Bank of New York Mellon Corp. (The) | 414 | 19,483 | ||||||
Credit Suisse Group AG (Registered)* | 486 | 7,387 | ||||||
Deutsche Bank AG (Registered)* | 1,053 | 18,954 | ||||||
Deutsche Boerse AG | 84 | 8,219 | ||||||
Euronext NV(a) | 12 | 588 | ||||||
Goldman Sachs Group, Inc. (The) | 118 | 26,408 | ||||||
Hargreaves Lansdown plc | 72 | 1,284 | ||||||
IG Group Holdings plc | 150 | 1,055 | ||||||
Investec plc | 178 | 1,316 | ||||||
Julius Baer Group Ltd.* | 74 | 3,855 | ||||||
London Stock Exchange Group plc | 120 | 5,252 | ||||||
Macquarie Group Ltd. | 132 | 9,181 | ||||||
Perpetual Ltd. | 46 | 1,816 | ||||||
S&P Global, Inc. | 118 | 15,834 | ||||||
Schroders plc | 32 | 1,319 | ||||||
SEI Investments Co. | 54 | 2,738 | ||||||
Thomson Reuters Corp. | 130 | 5,898 | ||||||
UBS Group AG (Registered) | 1,278 | 21,825 | ||||||
159,395 |
See Accompanying Notes to the Financial Statements.
176 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – 3.3% | ||||||||
Agrium, Inc. | 50 | $ | 4,685 | |||||
Air Liquide SA | 110 | 13,248 | ||||||
Air Products & Chemicals, Inc. | 50 | 7,025 | ||||||
Akzo Nobel NV | 42 | 3,672 | ||||||
Arkema SA | 28 | 2,964 | ||||||
BASF SE | 326 | 31,758 | ||||||
Celanese Corp., Series A | 52 | 4,526 | ||||||
Covestro AG(a) | 10 | 779 | ||||||
Dow Chemical Co. (The) | 326 | 20,473 | ||||||
DuluxGroup Ltd. | 252 | 1,276 | ||||||
Eastman Chemical Co. | 66 | 5,264 | ||||||
Ecolab, Inc. | 108 | 13,942 | ||||||
EI du Pont de Nemours & Co. | 284 | 22,649 | ||||||
EMS-Chemie Holding AG (Registered) | 2 | 1,253 | ||||||
Hexpol AB | 62 | 689 | ||||||
Incitec Pivot Ltd. | 468 | 1,326 | ||||||
International Flavors & Fragrances, Inc. | 32 | 4,435 | ||||||
K+S AG (Registered) | 80 | 1,908 | ||||||
Koninklijke DSM NV | 10 | 715 | ||||||
Kuraray Co. Ltd. | 200 | 3,226 | ||||||
LANXESS AG | 26 | 1,877 | ||||||
Linde AG | 48 | 8,622 | ||||||
LyondellBasell Industries NV, Class A | 114 | 9,663 | ||||||
Mitsui Chemicals, Inc. | 2,000 | 10,227 | ||||||
Monsanto Co. | 166 | 19,357 | ||||||
Mosaic Co. (The) | 86 | 2,316 | ||||||
Nitto Denko Corp. | 100 | 7,526 | ||||||
Novozymes A/S, Class B | 38 | 1,641 | ||||||
Orica Ltd. | 222 | 3,076 | ||||||
PPG Industries, Inc. | 88 | 9,666 | ||||||
Praxair, Inc. | 44 | 5,499 | ||||||
Sherwin-Williams Co. (The) | 30 | 10,040 | ||||||
Shin-Etsu Chemical Co. Ltd. | 200 | 17,375 | ||||||
Sika AG | 1 | 6,379 | ||||||
Solvay SA | 26 | 3,306 | ||||||
Syngenta AG (Registered)* | 16 | 7,432 | ||||||
Teijin Ltd. | 200 | 3,874 | ||||||
Yara International ASA | 64 | 2,385 | ||||||
276,074 | ||||||||
Commercial Services & Supplies – 0.2% | ||||||||
Brambles Ltd. | 674 | 5,212 |
Shares | Value | |||||||
Commercial Services & Supplies – (continued) | ||||||||
Cintas Corp. | 36 | $ | 4,409 | |||||
Intrum Justitia AB | 24 | 954 | ||||||
ISS A/S | 30 | 1,244 | ||||||
IWG plc | 296 | 1,244 | ||||||
Rentokil Initial plc | 786 | 2,532 | ||||||
15,595 | ||||||||
Communications Equipment – 1.3% | ||||||||
Cisco Systems, Inc. | 2,428 | 82,722 | ||||||
Juniper Networks, Inc. | 138 | 4,150 | ||||||
Motorola Solutions, Inc. | 62 | 5,330 | ||||||
Nokia OYJ | 1,376 | 7,867 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 890 | 5,739 | ||||||
105,808 | ||||||||
Construction & Engineering – 0.4% | ||||||||
ACS Actividades de Construccion y Servicios SA | 24 | 889 | ||||||
Balfour Beatty plc | 362 | 1,367 | ||||||
Bouygues SA* | 100 | 4,203 | ||||||
Eiffage SA | 34 | 2,879 | ||||||
HOCHTIEF AG | 8 | 1,441 | ||||||
Kajima Corp. | 1,000 | 6,791 | ||||||
NCC AB, Class B | 22 | 585 | ||||||
Vinci SA | 186 | 15,819 | ||||||
33,974 | ||||||||
Construction Materials – 0.2% | ||||||||
CRH plc | 228 | 8,311 | ||||||
HeidelbergCement AG | 42 | 3,888 | ||||||
Imerys SA | 6 | 516 | ||||||
Wienerberger AG | 28 | 655 | ||||||
13,370 | ||||||||
Consumer Finance – 0.1% | ||||||||
Synchrony Financial | 406 | 11,287 | ||||||
Containers & Packaging – 0.3% | ||||||||
Amcor Ltd. | 630 | 7,402 | ||||||
Ball Corp. | 46 | 3,537 | ||||||
DS Smith plc | 278 | 1,552 | ||||||
Huhtamaki OYJ | 34 | 1,317 | ||||||
International Paper Co. | 164 | 8,851 | ||||||
Orora Ltd. | 476 | 1,071 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 177 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Containers & Packaging – (continued) | ||||||||
Packaging Corp. of America | 38 | $ | 3,754 | |||||
RPC Group plc | 24 | 252 | ||||||
Smurfit Kappa Group plc | 52 | 1,392 | ||||||
29,128 | ||||||||
Distributors – 0.0%(b) | ||||||||
Inchcape plc | 256 | 2,830 | ||||||
Diversified Financial Services – 0.8% | ||||||||
AMP Ltd. | 674 | 2,702 | ||||||
Berkshire Hathaway, Inc., Class B* | 352 | 58,154 | ||||||
Eurazeo SA | 22 | 1,491 | ||||||
Investor AB, Class B | 140 | 6,402 | ||||||
Kinnevik AB, Class B | 56 | 1,495 | ||||||
70,244 | ||||||||
Diversified Telecommunication Services – 2.4% | ||||||||
AT&T, Inc. | 1,678 | 66,499 | ||||||
BCE, Inc. | 48 | 2,182 | ||||||
BT Group plc | 2,934 | 11,568 | ||||||
Deutsche Telekom AG (Registered) | 1,442 | 25,281 | ||||||
Elisa OYJ | 96 | 3,269 | ||||||
HKT Trust & HKT Ltd. | 2,000 | 2,559 | ||||||
Iliad SA | 10 | 2,427 | ||||||
Koninklijke KPN NV | 1,198 | 3,463 | ||||||
Orange SA | 320 | 4,948 | ||||||
Proximus SADP | 68 | 2,080 | ||||||
SFR Group SA* | 38 | 1,244 | ||||||
Singapore Telecommunications Ltd. | 2,200 | 5,887 | ||||||
Swisscom AG (Registered) | 18 | 7,848 | ||||||
Telecom Italia SpA* | 3,610 | 3,204 | ||||||
Telenor ASA | 270 | 4,375 | ||||||
Telia Co. AB | 1,082 | 4,411 | ||||||
Telstra Corp. Ltd. | 554 | 1,748 | ||||||
Verizon Communications, Inc. | 1,092 | 50,134 | ||||||
Vivendi SA* | 62 | 1,230 | ||||||
204,357 | ||||||||
Electric Utilities – 1.4% | ||||||||
Contact Energy Ltd. | 118 | 422 | ||||||
DONG Energy A/S(a) | 44 | 1,733 | ||||||
Duke Energy Corp. | 268 | 22,110 |
Shares | Value | |||||||
Electric Utilities – (continued) | ||||||||
EDP – Energias de Portugal SA | 760 | $ | 2,508 | |||||
Electricite de France SA | 199 | 1,661 | ||||||
Endesa SA | 108 | 2,545 | ||||||
Enel SpA | 2,348 | 11,158 | ||||||
Eversource Energy | 150 | 8,910 | ||||||
Iberdrola SA | 1,680 | 12,078 | ||||||
NextEra Energy, Inc. | 172 | 22,972 | ||||||
PG&E Corp. | 158 | 10,594 | ||||||
Pinnacle West Capital Corp. | 36 | 3,063 | ||||||
PPL Corp. | 156 | 5,945 | ||||||
Red Electrica Corp. SA | 108 | 2,105 | ||||||
SSE plc | 2 | 36 | ||||||
Westar Energy, Inc. | 28 | 1,457 | ||||||
Xcel Energy, Inc. | 164 | 7,388 | ||||||
116,685 | ||||||||
Electrical Equipment – 1.4% | ||||||||
ABB Ltd. (Registered) | 620 | 15,172 | ||||||
Eaton Corp. plc | 176 | 13,313 | ||||||
Gamesa Corp. Tecnologica SA | 44 | 950 | ||||||
Legrand SA | 98 | 6,342 | ||||||
Mitsubishi Electric Corp. | 2,200 | 30,670 | ||||||
Nidec Corp. | 300 | 27,505 | ||||||
OSRAM Licht AG | 14 | 938 | ||||||
Schneider Electric SE | 170 | 13,421 | ||||||
Ushio, Inc. | 200 | 2,512 | ||||||
Vestas Wind Systems A/S | 50 | 4,305 | ||||||
115,128 | ||||||||
Electronic Equipment, Instruments & Components – 0.8% | ||||||||
Fingerprint Cards AB, Class B | 162 | 645 | ||||||
Halma plc | 200 | 2,725 | ||||||
Hexagon AB, Class B | 68 | 2,962 | ||||||
Kyocera Corp. | 200 | 11,322 | ||||||
Murata Manufacturing Co. Ltd. | 200 | 26,814 | ||||||
Omron Corp. | 200 | 8,370 | ||||||
TDK Corp. | 200 | 12,380 | ||||||
Yokogawa Electric Corp. | 200 | 3,088 | ||||||
68,306 | ||||||||
Energy Equipment & Services – 1.0% | ||||||||
Amec Foster Wheeler plc | 136 | 955 | ||||||
Baker Hughes, Inc. | 156 | 9,262 |
See Accompanying Notes to the Financial Statements.
178 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Energy Equipment & Services – (continued) | ||||||||
Halliburton Co. | 364 | $ | 16,700 | |||||
John Wood Group plc | 260 | 2,555 | ||||||
Petrofac Ltd. | 102 | 1,075 | ||||||
Saipem SpA* | 2,650 | 1,141 | ||||||
Schlumberger Ltd. | 752 | 54,588 | ||||||
86,276 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.1% | ||||||||
British Land Co. plc (The) | 260 | 2,208 | ||||||
Dexus Property Group | 638 | 4,867 | ||||||
GLP J-Reit* | 2 | 2,255 | ||||||
Goodman Group | 408 | 2,475 | ||||||
GPT Group (The) | 1,300 | 5,104 | ||||||
Hammerson plc | 302 | 2,295 | ||||||
Host Hotels & Resorts, Inc. | 464 | 8,329 | ||||||
ICADE | 62 | 4,602 | ||||||
Intu Properties plc | 200 | 713 | ||||||
Iron Mountain, Inc. | 142 | 4,936 | ||||||
Japan Hotel REIT Investment Corp. | 2 | 1,362 | ||||||
Land Securities Group plc | 260 | 3,720 | ||||||
Link REIT | 1,000 | 7,194 | ||||||
Merlin Properties Socimi SA | 126 | 1,491 | ||||||
Mirvac Group | 1,840 | 3,124 | ||||||
Orix JREIT, Inc. | 2 | 3,172 | ||||||
Prologis, Inc. | 160 | 8,706 | ||||||
Shaftesbury plc | 286 | 3,448 | ||||||
Suntec REIT | 600 | 760 | ||||||
Unibail-Rodamco SE | 50 | 12,275 | ||||||
Weyerhaeuser Co. | 372 | 12,600 | ||||||
95,636 | ||||||||
Food & Staples Retailing – 2.5% | ||||||||
Aeon Co. Ltd. | 1,000 | 14,834 | ||||||
Alimentation Couche-Tard, Inc., Class B | 12 | 551 | ||||||
Carrefour SA | 20 | 471 | ||||||
Casino Guichard Perrachon SA | 22 | 1,325 | ||||||
CVS Health Corp. | 460 | 37,922 | ||||||
ICA Gruppen AB | 52 | 1,776 | ||||||
J Sainsbury plc | 676 | 2,409 | ||||||
Kesko OYJ, Class B | 48 | 2,249 | ||||||
Koninklijke Ahold Delhaize NV | 444 | 9,196 | ||||||
Kroger Co. (The) | 530 | 15,714 |
Shares | Value | |||||||
Food & Staples Retailing – (continued) | ||||||||
Metro, Inc. | 176 | $ | 6,022 | |||||
Seven & i Holdings Co. Ltd. | 800 | 33,803 | ||||||
Sysco Corp. | 70 | 3,701 | ||||||
Tesco plc* | 1,420 | 3,366 | ||||||
Walgreens Boots Alliance, Inc. | 458 | 39,635 | ||||||
Wesfarmers Ltd. | 558 | 17,944 | ||||||
Wm Morrison Supermarkets plc | 844 | 2,619 | ||||||
Woolworths Ltd. | 705 | 14,172 | ||||||
207,709 | ||||||||
Food Products – 2.4% | ||||||||
Ajinomoto Co., Inc. | 400 | 7,783 | ||||||
Archer-Daniels-Midland Co. | 204 | 9,333 | ||||||
Associated British Foods plc | 164 | 5,962 | ||||||
Barry Callebaut AG (Registered)* | 2 | 2,744 | ||||||
Bunge Ltd. | 42 | 3,319 | ||||||
Campbell Soup Co. | 58 | 3,337 | ||||||
Conagra Brands, Inc. | 134 | 5,197 | ||||||
Danone SA | 156 | 10,903 | ||||||
General Mills, Inc. | 36 | 2,070 | ||||||
Golden Agri-Resources Ltd. | 3,800 | 979 | ||||||
Hershey Co. (The) | 48 | 5,194 | ||||||
Hormel Foods Corp. | 104 | 3,648 | ||||||
JM Smucker Co. (The) | 82 | 10,391 | ||||||
Kerry Group plc, Class A | 12 | 980 | ||||||
McCormick & Co., Inc. (Non-Voting) | 52 | 5,195 | ||||||
MEIJI Holdings Co. Ltd. | 100 | 8,487 | ||||||
Mondelez International, Inc., Class A | 494 | 22,245 | ||||||
Nestle SA (Registered) | 1,174 | 90,398 | ||||||
Tate & Lyle plc | 142 | 1,390 | ||||||
Viscofan SA | 12 | 718 | ||||||
200,273 | ||||||||
Gas Utilities – 0.2% | ||||||||
Gas Natural SDG SA | 146 | 3,301 | ||||||
Hong Kong & China Gas Co. Ltd. | 2,000 | 3,996 | ||||||
Rubis SCA | 12 | 1,219 | ||||||
Tokyo Gas Co. Ltd. | 2,000 | 9,285 | ||||||
17,801 | ||||||||
Health Care Equipment & Supplies – 2.2% | ||||||||
Abbott Laboratories | 940 | 41,022 | ||||||
Ansell Ltd. | 156 | 2,777 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 179 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Baxter International, Inc. | 214 | $ | 11,915 | |||||
Becton Dickinson and Co. | 108 | 20,193 | ||||||
Cochlear Ltd. | 24 | 2,511 | ||||||
Edwards Lifesciences Corp.* | 54 | 5,922 | ||||||
Elekta AB, Class B | 126 | 1,315 | ||||||
Essilor International SA | 10 | 1,295 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 212 | 1,466 | ||||||
Hologic, Inc.* | 112 | 5,057 | ||||||
IDEXX Laboratories, Inc.* | 26 | 4,361 | ||||||
Medtronic plc | 674 | 56,003 | ||||||
Olympus Corp. | 400 | 15,394 | ||||||
Smith & Nephew plc | 358 | 5,882 | ||||||
Sonova Holding AG (Registered) | 22 | 3,251 | ||||||
Sysmex Corp. | 100 | 6,082 | ||||||
William Demant Holding A/S* | 50 | 1,144 | ||||||
185,590 | ||||||||
Health Care Providers & Services – 0.8% | ||||||||
AmerisourceBergen Corp. | 38 | 3,118 | ||||||
Anthem, Inc. | 130 | 23,126 | ||||||
Cigna Corp. | 126 | 19,702 | ||||||
Humana, Inc. | 44 | 9,767 | ||||||
Laboratory Corp. of America Holdings* | 16 | 2,242 | ||||||
Ramsay Health Care Ltd. | 80 | 4,290 | ||||||
Ryman Healthcare Ltd. | 160 | 948 | ||||||
Sonic Healthcare Ltd. | 100 | 1,652 | ||||||
64,845 | ||||||||
Hotels, Restaurants & Leisure – 2.2% | ||||||||
Accor SA* | 72 | 3,281 | ||||||
Aristocrat Leisure Ltd. | 122 | 1,792 | ||||||
Carnival Corp. | 198 | 12,230 | ||||||
Carnival plc | 52 | 3,206 | ||||||
Compass Group plc | 668 | 13,465 | ||||||
InterContinental Hotels Group plc | 86 | 4,557 | ||||||
Kindred Group plc, SDR | 62 | 643 | ||||||
Ladbrokes Coral Group plc | 624 | 1,057 | ||||||
Las Vegas Sands Corp. | 106 | 6,253 | ||||||
Marriott International, Inc., Class A | 210 | 19,828 | ||||||
McDonald’s Corp. | 406 | 56,812 | ||||||
Merlin Entertainments plc(a) | 290 | 1,897 | ||||||
Royal Caribbean Cruises Ltd. | 106 | 11,300 |
Shares | Value | |||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Sodexo SA | 22 | $ | 2,796 | |||||
Star Entertainment Grp Ltd. (The) | 434 | 1,808 | ||||||
Starbucks Corp. | 338 | 20,300 | ||||||
TUI AG, DI | 218 | 3,167 | ||||||
Whitbread plc | 66 | 3,445 | ||||||
William Hill plc | 480 | 1,823 | ||||||
Wyndham Worldwide Corp. | 50 | 4,765 | ||||||
Yum Brands, Inc. | 178 | 11,703 | ||||||
Yum China Holdings, Inc.* | 80 | 2,730 | ||||||
188,858 | ||||||||
Household Durables – 0.8% | ||||||||
Barratt Developments plc | 394 | 2,954 | ||||||
Berkeley Group Holdings plc | 32 | 1,349 | ||||||
Electrolux AB, Series B | 42 | 1,248 | ||||||
Husqvarna AB, Class B | 70 | 696 | ||||||
Mohawk Industries, Inc.* | 12 | 2,817 | ||||||
Panasonic Corp. | 1,200 | 14,323 | ||||||
SEB SA | 18 | 2,901 | ||||||
Sharp Corp.* | 2,000 | 7,213 | ||||||
Sony Corp. | 1,000 | 33,722 | ||||||
Whirlpool Corp. | 18 | 3,342 | ||||||
70,565 | ||||||||
Household Products – 2.3% | ||||||||
Church & Dwight Co., Inc. | 88 | 4,359 | ||||||
Clorox Co. (The) | 64 | 8,556 | ||||||
Colgate-Palmolive Co. | 282 | 20,315 | ||||||
Henkel AG & Co. KGaA (Preference) | 76 | 10,345 | ||||||
Kimberly-Clark Corp. | 70 | 9,082 | ||||||
Procter & Gamble Co. (The) | 1,260 | 110,036 | ||||||
Reckitt Benckiser Group plc | 272 | 25,024 | ||||||
Svenska Cellulosa AB SCA, Class B | 148 | 4,904 | ||||||
192,621 | ||||||||
Independent Power and Renewable Electricity Producers – 0.0%(b) | ||||||||
Drax Group plc | 124 | 518 | ||||||
Meridian Energy Ltd. | 448 | 852 | ||||||
Uniper SE* | 38 | 624 | ||||||
1,994 |
See Accompanying Notes to the Financial Statements.
180 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Industrial Conglomerates – 3.3% | ||||||||
3M Co. | 282 | $ | 55,224 | |||||
CK Hutchison Holdings Ltd. | 1,000 | 12,491 | ||||||
General Electric Co. | 4,998 | 144,892 | ||||||
Keppel Corp. Ltd. | 200 | 932 | ||||||
Koninklijke Philips NV | 320 | 11,088 | ||||||
Siemens AG (Registered) | 342 | 49,011 | ||||||
Smiths Group plc | 140 | 2,970 | ||||||
276,608 | ||||||||
Insurance – 2.1% | ||||||||
Admiral Group plc | 68 | 1,769 | ||||||
Aegon NV | 388 | 1,977 | ||||||
Aflac, Inc. | 126 | 9,435 | ||||||
Ageas | 60 | �� | 2,457 | |||||
Arthur J Gallagher & Co. | 64 | 3,572 | ||||||
Assicurazioni Generali SpA | 396 | 6,266 | ||||||
Aviva plc | 832 | 5,646 | ||||||
AXA SA | 638 | 17,028 | ||||||
Delta Lloyd NV* | 138 | 793 | ||||||
Direct Line Insurance Group plc | 650 | 2,937 | ||||||
Gjensidige Forsikring ASA | 56 | 862 | ||||||
Great-West Lifeco, Inc. | 122 | 3,276 | ||||||
Hannover Rueck SE | 20 | 2,398 | ||||||
Hartford Financial Services Group, Inc. (The) | 96 | 4,643 | ||||||
Hiscox Ltd. | 174 | 2,548 | ||||||
Insurance Australia Group Ltd. | 1,072 | 4,978 | ||||||
Legal & General Group plc | 1,224 | 3,897 | ||||||
Medibank Pvt Ltd. | 1,288 | 2,803 | ||||||
MetLife, Inc. | 160 | 8,290 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) | 72 | 13,795 | ||||||
NN Group NV | 118 | 3,911 | ||||||
Old Mutual plc | 1,262 | 3,167 | ||||||
Phoenix Group Holdings | 156 | 1,491 | ||||||
Power Corp. of Canada | 104 | 2,406 | ||||||
Power Financial Corp. | 90 | 2,283 | ||||||
Principal Financial Group, Inc. | 142 | 9,248 | ||||||
Prudential plc | 516 | 11,456 | ||||||
RSA Insurance Group plc | 330 | 2,545 | ||||||
Sampo OYJ, Class A | 128 | 6,132 |
Shares | Value | |||||||
Insurance – (continued) | ||||||||
St James’s Place plc | 198 | $ | 2,941 | |||||
Standard Life plc | 570 | 2,684 | ||||||
Swiss Life Holding AG (Registered)* | 10 | 3,253 | ||||||
Swiss Re AG | 122 | 10,613 | ||||||
Tryg A/S | 46 | 882 | ||||||
Zurich Insurance Group AG | 54 | 14,940 | ||||||
177,322 | ||||||||
Internet & Direct Marketing Retail – 1.1% | ||||||||
Amazon.com, Inc.* | 76 | 70,299 | ||||||
Priceline Group, Inc. (The)* | 10 | 18,468 | ||||||
Zalando SE* (a) | 32 | 1,411 | ||||||
90,178 | ||||||||
Internet Software & Services – 2.5% | ||||||||
Alphabet, Inc., Class C* | 118 | 106,903 | ||||||
carsales.com Ltd. | 88 | 773 | ||||||
Facebook, Inc., Class A* | 686 | 103,071 | ||||||
Moneysupermarket.com Group plc | 200 | 895 | ||||||
211,642 | ||||||||
IT Services – 2.2% | ||||||||
Accenture plc, Class A | 358 | 43,426 | ||||||
Amadeus IT Group SA | 124 | 6,684 | ||||||
Amdocs Ltd. | 72 | 4,409 | ||||||
Atos SE | 36 | 4,716 | ||||||
Automatic Data Processing, Inc. | 82 | 8,568 | ||||||
Cap Gemini SA | 70 | 7,005 | ||||||
Cognizant Technology Solutions Corp., Class A* | 178 | 10,721 | ||||||
Computershare Ltd. | 146 | 1,610 | ||||||
Fujitsu Ltd. | 2,000 | 12,466 | ||||||
International Business Machines Corp. | 508 | 81,427 | ||||||
Jack Henry & Associates, Inc. | 24 | 2,326 | ||||||
Total System Services, Inc. | 46 | 2,636 | ||||||
185,994 | ||||||||
Life Sciences Tools & Services – 0.5% | ||||||||
Agilent Technologies, Inc. | 76 | 4,184 | ||||||
Eurofins Scientific SE | 6 | 2,954 | ||||||
Lonza Group AG (Registered)* | 14 | 2,862 | ||||||
Mettler-Toledo International, Inc.* | 8 | 4,107 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 181 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Life Sciences Tools & Services – (continued) | ||||||||
Thermo Fisher Scientific, Inc. | 164 | $ | 27,114 | |||||
41,221 | ||||||||
Machinery – 1.6% | ||||||||
Alfa Laval AB | 32 | 657 | ||||||
Atlas Copco AB, Class A | 220 | 8,229 | ||||||
CNH Industrial NV | 348 | 3,839 | ||||||
Cummins, Inc. | 66 | 9,962 | ||||||
Deere & Co. | 102 | 11,384 | ||||||
Fortive Corp. | 60 | 3,796 | ||||||
Georg Fischer AG (Registered) | 2 | 1,885 | ||||||
Hitachi Construction Machinery Co. Ltd. | 200 | 5,151 | ||||||
Illinois Tool Works, Inc. | 134 | 18,504 | ||||||
Ingersoll-Rand plc | 112 | 9,940 | ||||||
Kawasaki Heavy Industries Ltd. | 2,000 | 6,046 | ||||||
KION Group AG | 16 | 1,084 | ||||||
Komatsu Ltd. | 600 | 15,997 | ||||||
Kone OYJ, Class B | 2 | 92 | ||||||
Kubota Corp. | 800 | 12,581 | ||||||
Metso OYJ | 18 | 645 | ||||||
NSK Ltd. | 200 | 2,727 | ||||||
Pentair plc | 62 | 4,000 | ||||||
Rotork plc | 384 | 1,222 | ||||||
SKF AB, Class B | 66 | 1,450 | ||||||
Spirax-Sarco Engineering plc | 12 | 807 | ||||||
Volvo AB, Class B | 560 | 9,164 | ||||||
Wartsila OYJ Abp | 36 | 2,191 | ||||||
Xylem, Inc. | 52 | 2,673 | ||||||
134,026 | ||||||||
Marine – 0.2% | ||||||||
AP Moller – Maersk A/S, Class B | 2 | 3,459 | ||||||
Kawasaki Kisen Kaisha Ltd. | 2,000 | 5,257 | ||||||
Mitsui OSK Lines Ltd. | 2,000 | 6,118 | ||||||
14,834 | ||||||||
Media – 1.4% | ||||||||
Comcast Corp., Class A | 940 | 36,839 | ||||||
Eutelsat Communications SA | 46 | 1,088 | ||||||
JCDecaux SA | 46 | 1,622 | ||||||
Lagardere SCA | 18 | 551 | ||||||
Pearson plc | 370 | 3,059 |
Shares | Value | |||||||
Media – (continued) | ||||||||
Publicis Groupe SA | 6 | $ | 433 | |||||
REA Group Ltd. | 28 | 1,288 | ||||||
Schibsted ASA, Class A | 44 | 1,097 | ||||||
Shaw Communications, Inc., Class B | 298 | 6,307 | ||||||
Sky plc | 260 | 3,337 | ||||||
Telenet Group Holding NV* | 22 | 1,336 | ||||||
Walt Disney Co. (The) | 504 | 58,262 | ||||||
WPP plc | 198 | 4,234 | ||||||
119,453 | ||||||||
Metals & Mining – 1.2% | ||||||||
Agnico Eagle Mines Ltd. | 18 | 859 | ||||||
Alumina Ltd. | 996 | 1,370 | ||||||
Anglo American plc* | 242 | 3,464 | ||||||
ArcelorMittal* | 536 | 4,228 | ||||||
BHP Billiton Ltd. | 1,302 | 23,096 | ||||||
BHP Billiton plc | 690 | 10,489 | ||||||
Boliden AB | 64 | 1,830 | ||||||
Glencore plc* | 3,906 | 15,345 | ||||||
Mitsubishi Materials Corp. | 200 | 5,948 | ||||||
Norsk Hydro ASA | 572 | 3,272 | ||||||
Rio Tinto Ltd. | 208 | 9,402 | ||||||
Rio Tinto plc | 448 | 17,747 | ||||||
Teck Resources Ltd., Class B | 118 | 2,444 | ||||||
thyssenkrupp AG | 182 | 4,331 | ||||||
103,825 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.0%(b) | ||||||||
Annaly Capital Management, Inc. | 210 | 2,480 | ||||||
Multiline Retail – 0.3% | ||||||||
Canadian Tire Corp. Ltd., Class A | 34 | 4,143 | ||||||
Dollar General Corp. | 56 | 4,072 | ||||||
J Front Retailing Co. Ltd. | 200 | 2,879 | ||||||
Kohl’s Corp. | 54 | 2,107 | ||||||
Macy’s, Inc. | 90 | 2,630 | ||||||
Next plc | 46 | 2,562 | ||||||
Target Corp. | 188 | 10,500 | ||||||
28,893 | ||||||||
Multi-Utilities – 0.7% | ||||||||
AGL Energy Ltd. | 330 | 6,604 | ||||||
CenterPoint Energy, Inc. | 222 | 6,334 |
See Accompanying Notes to the Financial Statements.
182 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Multi-Utilities – (continued) | ||||||||
CMS Energy Corp. | 74 | $ | 3,360 | |||||
Consolidated Edison, Inc. | 96 | 7,611 | ||||||
DUET Group | 1,124 | 2,538 | ||||||
E.ON SE | 498 | 3,881 | ||||||
Engie SA | 368 | 5,189 | ||||||
Innogy SE(a) | 58 | 2,132 | ||||||
National Grid plc | 812 | 10,505 | ||||||
SCANA Corp. | 42 | 2,785 | ||||||
Veolia Environnement SA | 256 | 4,862 | ||||||
55,801 | ||||||||
Oil, Gas & Consumable Fuels – 5.6% | ||||||||
BP plc | 4,934 | 28,246 | ||||||
Caltex Australia Ltd. | 136 | 3,038 | ||||||
Canadian Natural Resources Ltd. | 734 | 23,341 | ||||||
Chevron Corp. | 1,120 | 119,504 | ||||||
Enbridge, Inc. | 618 | 25,573 | ||||||
Eni SpA | 570 | 8,857 | ||||||
Exxon Mobil Corp. | 1,654 | 135,049 | ||||||
Galp Energia SGPS SA | 140 | 2,176 | ||||||
Hess Corp. | 136 | 6,641 | ||||||
Inpex Corp. | 800 | 7,669 | ||||||
JXTG Holdings, Inc. | 3,600 | 16,248 | ||||||
Neste OYJ | 60 | 2,450 | ||||||
Oil Search Ltd. | 268 | 1,447 | ||||||
OMV AG | 76 | 3,499 | ||||||
Repsol SA | 273 | 4,321 | ||||||
Royal Dutch Shell plc, Class A | 1,542 | 40,098 | ||||||
Santos Ltd.* | 1,124 | 2,925 | ||||||
Snam SpA | 744 | 3,288 | ||||||
Statoil ASA | 154 | 2,547 | ||||||
TOTAL SA | 486 | 24,964 | ||||||
Woodside Petroleum Ltd. | 320 | 7,701 | ||||||
469,582 | ||||||||
Paper & Forest Products – 0.1% | ||||||||
Mondi plc | 116 | 3,003 | ||||||
Stora Enso OYJ, Class R | 258 | 3,068 | ||||||
UPM-Kymmene OYJ | 140 | 3,694 | ||||||
9,765 |
Shares | Value | |||||||
Personal Products – 1.1% | ||||||||
Beiersdorf AG | 60 | $ | 5,968 | |||||
Estee Lauder Cos., Inc. (The), Class A | 134 | 11,677 | ||||||
L’Oreal SA | 66 | 13,141 | ||||||
Shiseido Co. Ltd. | 400 | 10,823 | ||||||
Unilever NV, CVA | 440 | 23,068 | ||||||
Unilever plc | 504 | 25,899 | ||||||
90,576 | ||||||||
Pharmaceuticals – 6.5% | ||||||||
Allergan plc | 150 | 36,579 | ||||||
AstraZeneca plc | 404 | 24,239 | ||||||
Bayer AG (Registered) | 290 | 35,874 | ||||||
Eli Lilly & Co. | 478 | 39,225 | ||||||
Galenica AG (Registered) | 2 | 2,172 | ||||||
GlaxoSmithKline plc | 1,022 | 20,494 | ||||||
H Lundbeck A/S | 18 | 922 | ||||||
Hikma Pharmaceuticals plc | 48 | 1,203 | ||||||
Ipsen SA | 16 | 1,862 | ||||||
Merck & Co., Inc. | 1,142 | 71,181 | ||||||
Merck KGaA | 72 | 8,452 | ||||||
Novartis AG (Registered) | 908 | 69,825 | ||||||
Novo Nordisk A/S, Class B | 540 | 21,008 | ||||||
Orion OYJ, Class B | 50 | 2,867 | ||||||
Perrigo Co. plc | 54 | 3,993 | ||||||
Pfizer, Inc. | 2,808 | 95,247 | ||||||
Roche Holding AG | 242 | 63,280 | ||||||
Sanofi | 456 | 43,007 | ||||||
Zoetis, Inc. | 142 | 7,968 | ||||||
549,398 | ||||||||
Professional Services – 0.3% | ||||||||
Adecco Group AG (Registered)* | 56 | 4,157 | ||||||
Bureau Veritas SA | 210 | 4,863 | ||||||
Hays plc | 404 | 895 | ||||||
Randstad Holding NV | 50 | 2,979 | ||||||
RELX NV | 102 | 1,972 | ||||||
RELX plc | 164 | 3,323 | ||||||
Teleperformance | 24 | 3,014 | ||||||
Wolters Kluwer NV | 78 | 3,312 | ||||||
24,515 | ||||||||
Real Estate Management & Development – 0.5% | �� | |||||||
Capital & Counties Properties plc | 134 | 547 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 183 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
CapitaLand Ltd.* | 1,000 | $ | 2,690 | |||||
Castellum AB | 60 | 822 | ||||||
CBRE Group, Inc., Class A* | 192 | 6,876 | ||||||
Cheung Kong Property Holdings Ltd. | 1,000 | 7,174 | ||||||
City Developments Ltd. | 200 | 1,544 | ||||||
Daiwa House Industry Co. Ltd. | 400 | 11,881 | ||||||
Fastighets AB Balder, Class B* | 58 | 1,296 | ||||||
Hulic Co. Ltd. | 400 | 3,768 | ||||||
PSP Swiss Property AG (Registered) | 18 | 1,613 | ||||||
Tokyu Fudosan Holdings Corp. | 400 | 2,182 | ||||||
Vonovia SE | 104 | 3,764 | ||||||
44,157 | ||||||||
Road & Rail – 0.4% | ||||||||
Aurizon Holdings Ltd. | 578 | 2,226 | ||||||
Canadian National Railway Co. | 278 | 20,062 | ||||||
DSV A/S | 72 | 4,010 | ||||||
Nippon Express Co. Ltd. | 2,000 | 10,981 | ||||||
37,279 | ||||||||
Semiconductors & Semiconductor Equipment – 2.4% | ||||||||
Analog Devices, Inc. | 106 | 8,077 | ||||||
Infineon Technologies AG | 490 | 10,138 | ||||||
Intel Corp. | 2,630 | 95,074 | ||||||
Lam Research Corp. | 36 | 5,215 | ||||||
Microchip Technology, Inc. | 56 | 4,232 | ||||||
NVIDIA Corp. | 152 | 15,854 | ||||||
STMicroelectronics NV | 354 | 5,721 | ||||||
Texas Instruments, Inc. | 484 | 38,323 | ||||||
Tokyo Electron Ltd. | 100 | 11,631 | ||||||
Xilinx, Inc. | 116 | 7,321 | ||||||
201,586 | ||||||||
Software – 5.1% | ||||||||
Adobe Systems, Inc.* | 196 | 26,213 | ||||||
Autodesk, Inc.* | 108 | 9,727 | ||||||
CA, Inc. | 72 | 2,364 | ||||||
Check Point Software Technologies Ltd.* | 36 | 3,744 | ||||||
Constellation Software, Inc. | 6 | 2,740 | ||||||
Dassault Systemes SE | 52 | 4,639 | ||||||
Dell Technologies, Inc., Class V* | 34 | 2,282 | ||||||
Gemalto NV | 12 | 672 |
Shares | Value | |||||||
Software – (continued) | ||||||||
Intuit, Inc. | 94 | $ | 11,770 | |||||
Microsoft Corp. | 4,542 | 310,945 | ||||||
Mobileye NV* | 74 | 4,582 | ||||||
Open Text Corp. | 88 | 3,052 | ||||||
Playtech plc | 166 | 2,060 | ||||||
SAP SE | 352 | 35,291 | ||||||
SimCorp A/S | 28 | 1,755 | ||||||
Splunk, Inc.* | 38 | 2,444 | ||||||
Temenos Group AG (Registered)* | 16 | 1,385 | ||||||
Ubisoft Entertainment SA* | 28 | 1,326 | ||||||
Workday, Inc., Class A* | 30 | 2,622 | ||||||
429,613 | ||||||||
Specialty Retail – 1.0% | ||||||||
Best Buy Co., Inc. | 130 | 6,735 | ||||||
Dufry AG (Registered)* | 16 | 2,620 | ||||||
Foot Locker, Inc. | 52 | 4,022 | ||||||
Hennes & Mauritz AB, Class B | 82 | 2,032 | ||||||
Industria de Diseno Textil SA | 64 | 2,454 | ||||||
Kingfisher plc | 1,378 | 6,085 | ||||||
Lowe’s Cos., Inc. | 280 | 23,766 | ||||||
Tiffany & Co. | 70 | 6,416 | ||||||
TJX Cos., Inc. (The) | 314 | 24,693 | ||||||
Ulta Beauty, Inc.* | 26 | 7,317 | ||||||
86,140 | ||||||||
Technology Hardware, Storage & Peripherals – 5.3% | ||||||||
Apple, Inc. | 2,586 | 371,479 | ||||||
Brother Industries Ltd. | 200 | 4,110 | ||||||
Canon, Inc. | 600 | 19,894 | ||||||
Hewlett Packard Enterprise Co. | 694 | 12,929 | ||||||
HP, Inc. | 830 | 15,621 | ||||||
Konica Minolta, Inc. | 200 | 1,767 | ||||||
Logitech International SA (Registered) | 24 | 802 | ||||||
Ricoh Co. Ltd. | 400 | 3,330 | ||||||
Seagate Technology plc | 130 | 5,477 | ||||||
Seiko Epson Corp. | 400 | 8,182 | ||||||
443,591 | ||||||||
Textiles, Apparel & Luxury Goods – 1.2% | ||||||||
adidas AG | 96 | 19,225 | ||||||
Asics Corp. | 200 | 3,536 | ||||||
Burberry Group plc | 178 | 3,717 |
See Accompanying Notes to the Financial Statements.
184 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Christian Dior SE | 18 | $ | 4,938 | |||||
Cie Financiere Richemont SA (Registered) | 124 | 10,358 | ||||||
Hermes International | 6 | 2,870 | ||||||
HUGO BOSS AG | 40 | 3,042 | ||||||
Kering | 24 | 7,437 | ||||||
Luxottica Group SpA | 62 | 3,592 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 84 | 20,718 | ||||||
Michael Kors Holdings Ltd.* | 112 | 4,181 | ||||||
NIKE, Inc., Class B | 306 | 16,955 | ||||||
VF Corp. | 12 | 655 | ||||||
101,224 | ||||||||
Tobacco – 2.1% | ||||||||
Altria Group, Inc. | 596 | 42,781 | ||||||
British American Tobacco plc | 478 | 32,250 | ||||||
Imperial Brands plc | 256 | 12,526 | ||||||
Japan Tobacco, Inc. | 1,000 | 33,247 | ||||||
Philip Morris International, Inc. | 468 | 51,873 | ||||||
Swedish Match AB | 96 | 3,168 | ||||||
175,845 | ||||||||
Trading Companies & Distributors – 0.4% | ||||||||
Brenntag AG | 44 | 2,608 | ||||||
Bunzl plc | 142 | 4,424 | ||||||
Fastenal Co. | 54 | 2,413 | ||||||
IMCD Group NV | 12 | 646 | ||||||
Marubeni Corp. | 1,400 | 8,621 | ||||||
Rexel SA | 174 | 3,107 | ||||||
Toyota Tsusho Corp. | 200 | 6,307 | ||||||
Travis Perkins plc | 168 | 3,501 | ||||||
Wolseley plc | 64 | 4,061 | ||||||
35,688 | ||||||||
Transportation Infrastructure – 0.3% | ||||||||
Abertis Infraestructuras SA | 63 | 1,108 | ||||||
Aena SA(a) | 16 | 2,823 | ||||||
Aeroports de Paris | 22 | 2,933 | ||||||
Atlantia SpA | 70 | 1,775 | ||||||
Auckland International Airport Ltd. | 252 | 1,194 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 18 | 1,415 | ||||||
Groupe Eurotunnel SE (Registered) | 318 | 3,492 |
Shares | Value | |||||||
Transportation Infrastructure – (continued) | ||||||||
Macquarie Atlas Roads Group | 140 | $ | 559 | |||||
SATS Ltd. | 200 | 728 | ||||||
Sydney Airport | 734 | 3,782 | ||||||
Transurban Group | 702 | 6,405 | ||||||
26,214 | ||||||||
Water Utilities – 0.1% | ||||||||
American Water Works Co., Inc. | 72 | 5,743 | ||||||
Severn Trent plc | 160 | 4,813 | ||||||
10,556 | ||||||||
Wireless Telecommunication Services – 0.5% | ||||||||
Freenet AG | 60 | 1,882 | ||||||
NTT DOCOMO, Inc. | 600 | 14,469 | ||||||
Tele2 AB, Class B | 106 | 1,068 | ||||||
Vodafone Group plc | 9,272 | 23,877 | ||||||
41,296 | ||||||||
Total Common Stocks (Cost $7,409,678) | 8,353,378 | |||||||
CLOSED END FUND – 0.0%(b) | ||||||||
Chemicals – 0.0%(b) | ||||||||
BB Biotech AG (Registered) | 20 | 1,133 | ||||||
Total Investments – 99.0% (Cost $7,410,677) | 8,354,511 | |||||||
Other Assets Less Liabilities – 1.0% | 80,872 | |||||||
NET ASSETS – 100.0% | $ | 8,435,383 |
* | Non-income producing security. |
(a) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(b) | Represents less than 0.05% of net assets. |
Percentages shown are based on Net Assets.
Abbreviations:
CVA – Dutch Certification
OYJ – Public Limited Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SCA – Limited partnership with share capital
SDR – Swedish Depositary Receipt
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 185 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 1,061,399 | ||
Aggregate gross unrealized depreciation | (119,100 | ) | ||
Net unrealized appreciation | $ | 942,299 | ||
Federal income tax cost of investments | $ | 7,412,212 |
Futures Contracts
FlexShares® STOXX® Global ESG Impact Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation | |||||||||||||
EURO STOXX 50® Index Futures Contracts | 2 | 06/16/2017 | $ | 76,401 | $ | 1,913 |
FlexShares® STOXX® Global ESG Impact Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 4.0 | % | ||
Austria | 0.1 | |||
Belgium | 0.4 | |||
Canada | 2.2 | |||
Denmark | 0.6 | |||
Finland | 0.4 | |||
France | 4.7 | |||
Germany | 4.7 | |||
Hong Kong | 0.4 | |||
Ireland | 0.1 | |||
Italy | 0.9 | |||
Japan | 8.9 | |||
Luxembourg | 0.0 | † | ||
Netherlands | 1.1 | |||
New Zealand | 0.1 | |||
Norway | 0.2 | |||
Portugal | 0.1 | |||
Singapore | 0.2 | |||
Spain | 1.0 | |||
Sweden | 1.2 | |||
Switzerland | 4.4 | |||
United Kingdom | 7.9 | |||
United States | 55.4 | |||
Other1 | 1.0 | |||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes any non-equity securities and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
186 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Morningstar Global Upstream Natural Resources Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.7% | ||||||||
Building Products – 0.1% | ||||||||
Universal Forest Products, Inc.(a) | 54,036 | $ | 5,149,090 | |||||
Chemicals – 18.7% | ||||||||
Agrium, Inc. | 651,434 | 61,041,267 | ||||||
CF Industries Holdings, Inc.(a) | 999,666 | 26,731,069 | ||||||
Incitec Pivot Ltd. | 7,850,230 | 22,250,310 | ||||||
Israel Chemicals Ltd. | 2,359,572 | 10,201,617 | ||||||
K+S AG (Registered)(a) | 894,596 | 21,339,201 | ||||||
Monsanto Co. | 2,071,380 | 241,543,622 | ||||||
Mosaic Co. (The)(a) | 1,443,962 | 38,885,897 | ||||||
Nufarm Ltd. | 972,648 | 7,397,605 | ||||||
Potash Corp. of Saskatchewan, Inc. | 3,878,584 | 65,300,229 | ||||||
Sasol Ltd.(a) | 462,308 | 14,162,419 | ||||||
Scotts Miracle-Gro Co. (The)(a) | 228,152 | 22,039,483 | ||||||
Syngenta AG (Registered)* | 501,334 | 232,876,429 | ||||||
UPL Ltd. | 1,966,032 | 24,637,287 | ||||||
Yara International ASA(a) | 861,574 | 32,103,475 | ||||||
820,509,910 | ||||||||
Containers & Packaging – 0.3% | ||||||||
Klabin SA | 2,401,600 | 11,839,825 | ||||||
Diversified Financial Services – 0.1% | ||||||||
Metro Pacific Investments Corp. | 45,630,400 | 6,009,167 | ||||||
Equity Real Estate Investment Trusts (REITs) – 2.0% | ||||||||
Rayonier, Inc. | 378,252 | 10,674,272 | ||||||
Weyerhaeuser Co. | 2,215,476 | 75,038,172 | ||||||
85,712,444 | ||||||||
Food Products – 11.6% | ||||||||
Archer-Daniels-Midland Co. | 2,971,980 | 135,968,085 | ||||||
Bunge Ltd. | 627,418 | 49,584,844 | ||||||
Charoen Pokphand Foods PCL, NVDR | 17,711,800 | 13,697,330 | ||||||
Charoen Pokphand Indonesia Tbk. PT | 45,930,600 | 10,992,469 |
Shares | Value | |||||||
Food Products – (continued) | ||||||||
CJ CheilJedang Corp. | 41,958 | $ | 12,573,757 | |||||
Fresh Del Monte Produce, Inc.(a) | 177,118 | 10,857,333 | ||||||
Golden Agri-Resources Ltd.(a) | 32,421,600 | 8,350,702 | ||||||
GrainCorp Ltd., Class A | 903,602 | 6,027,768 | ||||||
IOI Corp. Bhd. | 17,682,300 | 18,696,558 | ||||||
Kuala Lumpur Kepong Bhd. | 2,397,600 | 13,542,767 | ||||||
Marine Harvest ASA* | 2,008,338 | 33,478,161 | ||||||
Maruha Nichiro Corp. | 300,200 | 8,577,527 | ||||||
PPB Group Bhd. | 2,997,000 | 11,667,657 | ||||||
Salmar ASA | 297,198 | 7,066,974 | ||||||
Tyson Foods, Inc., Class A(a) | 1,897,264 | 121,918,185 | ||||||
Wilmar International Ltd.(a) | 18,012,000 | 45,748,444 | ||||||
508,748,561 | ||||||||
Metals & Mining – 29.4% | ||||||||
Agnico Eagle Mines Ltd. | 930,620 | 44,410,862 | ||||||
Anglo American plc* (a) | 4,004,668 | 57,328,197 | ||||||
AngloGold Ashanti Ltd.(a) | 1,630,086 | 18,414,323 | ||||||
Barrick Gold Corp. | 4,253,834 | 70,995,752 | ||||||
BHP Billiton Ltd.(a) | 9,786,520 | 173,603,092 | ||||||
Boliden AB(a) | 771,514 | 22,061,181 | ||||||
First Quantum Minerals Ltd. | 1,780,186 | 16,938,653 | ||||||
Fortescue Metals Group Ltd. | 4,836,222 | 19,205,041 | ||||||
Franco-Nevada Corp. | 678,461 | 46,067,666 | ||||||
Freeport-McMoRan, Inc.* | 2,983,988 | 38,045,847 | ||||||
Glencore plc* | 32,361,560 | 127,131,475 | ||||||
Goldcorp, Inc. | 3,173,114 | 44,140,005 | ||||||
Grupo Mexico SAB de CV, Series B | 9,606,400 | 28,027,894 | ||||||
Kinross Gold Corp.* | 4,617,076 | 16,039,721 | ||||||
Korea Zinc Co. Ltd. | 38,961 | 14,568,860 | ||||||
Mitsubishi Materials Corp. | 380,500 | 11,315,668 | ||||||
MMC Norilsk Nickel PJSC | 2,980 | 457,354 | ||||||
MMC Norilsk Nickel PJSC, ADR | 1,960,526 | 30,162,692 | ||||||
Newcrest Mining Ltd. | 2,959,972 | 46,840,093 | ||||||
Newmont Mining Corp. | 1,969,312 | 66,582,439 | ||||||
Norsk Hydro ASA | 4,070,712 | 23,284,292 | ||||||
Randgold Resources Ltd. | 351,234 | 30,922,531 | ||||||
Rio Tinto plc | 3,461,306 | 137,118,336 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 187 |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Royal Gold, Inc.(a) | 216,144 | $ | 15,277,058 | |||||
Silver Wheaton Corp. | 1,819,212 | 36,243,205 | ||||||
South32 Ltd. | 15,478,312 | 32,179,766 | ||||||
Southern Copper Corp.(a) | 537,358 | 19,006,352 | ||||||
Sumitomo Metal Mining Co. Ltd. | 1,667,031 | 22,604,444 | ||||||
Tahoe Resources, Inc. | 1,233,822 | 9,980,305 | ||||||
Teck Resources Ltd., Class B | 1,311,874 | 27,171,997 | ||||||
Vale SA (Preference)* | 5,403,600 | 44,224,787 | ||||||
1,290,349,888 | ||||||||
Multi-Utilities – 1.4% | ||||||||
Suez(a) | 1,233,822 | 20,267,760 | ||||||
Veolia Environnement SA(a) | 2,077,384 | 39,452,198 | ||||||
59,719,958 | ||||||||
Oil, Gas & Consumable Fuels – 27.4% | ||||||||
Anadarko Petroleum Corp. | 423,282 | 24,135,540 | ||||||
Apache Corp.(a) | 306,204 | 14,893,763 | ||||||
BP plc | 17,057,364 | 97,650,741 | ||||||
Canadian Natural Resources Ltd. | 975,650 | 31,025,570 | ||||||
Cenovus Energy, Inc. | 726,484 | 7,231,366 | ||||||
Chevron Corp. | 1,567,044 | 167,203,595 | ||||||
China Petroleum & Chemical Corp., Class H | 23,976,000 | 19,421,129 | ||||||
CNOOC Ltd. | 14,985,000 | 17,475,162 | ||||||
Concho Resources, Inc.* (a) | 114,076 | 14,448,866 | ||||||
ConocoPhillips | 978,652 | 46,887,217 | ||||||
Devon Energy Corp. | 375,250 | 14,818,622 | ||||||
Eni SpA | 2,359,572 | 36,666,136 | ||||||
EOG Resources, Inc. | 435,290 | 40,264,325 | ||||||
Exxon Mobil Corp. | 2,479,652 | 202,463,586 | ||||||
Gazprom PJSC, ADR | 4,747,255 | 22,549,461 | ||||||
Gazprom PJSC, ADR, OTC | 155,011 | 734,752 | ||||||
Hess Corp. | 192,128 | 9,381,610 | ||||||
LUKOIL PJSC, ADR | 375,250 | 18,636,791 | ||||||
Noble Energy, Inc. | 336,224 | 10,870,122 | ||||||
Occidental Petroleum Corp. | 738,492 | 45,446,798 | ||||||
PetroChina Co. Ltd., Class H | 17,982,000 | 12,669,974 | ||||||
Petroleo Brasileiro SA (Preference)* | 4,503,000 | 19,553,167 |
Shares | Value | |||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Pioneer Natural Resources Co. | 147,098 | $ | 25,446,483 | |||||
Repsol SA | 1,068,712 | 16,915,454 | ||||||
Royal Dutch Shell plc, Class A | 3,740,492 | 96,906,210 | ||||||
Statoil ASA(a) | 891,594 | 14,748,015 | ||||||
Suncor Energy, Inc. | 1,428,952 | 44,708,964 | ||||||
TOTAL SA(a) | 2,215,476 | 113,799,633 | ||||||
Woodside Petroleum Ltd. | 621,414 | 14,954,833 | ||||||
1,201,907,885 | ||||||||
Paper & Forest Products – 3.1% | ||||||||
Canfor Corp.* | 228,152 | 3,420,695 | ||||||
Century Plyboards India Ltd.* | 260,739 | 1,042,470 | ||||||
Duratex SA | 900,600 | 2,514,180 | ||||||
Interfor Corp.* | 213,142 | 3,142,648 | ||||||
Mondi plc | 1,131,754 | 29,298,776 | ||||||
Oji Holdings Corp. | 3,002,000 | 14,515,816 | ||||||
Stella-Jones, Inc. | 147,098 | 4,651,881 | ||||||
Stora Enso OYJ, Class R(a) | 1,741,160 | 20,704,715 | ||||||
UPM-Kymmene OYJ | 1,729,152 | 45,624,122 | ||||||
West Fraser Timber Co. Ltd. | 204,136 | 9,157,977 | ||||||
Western Forest Products, Inc. | 1,395,930 | 2,195,019 | ||||||
136,268,299 | ||||||||
Trading Companies & Distributors – 1.6% | ||||||||
Marubeni Corp. | 8,105,400 | 49,910,707 | ||||||
Mitsui & Co. Ltd. | 1,501,000 | 21,181,242 | ||||||
71,091,949 | ||||||||
Water Utilities – 4.0% | ||||||||
Aguas Andinas SA, Class A | 8,679,312 | 4,911,558 | ||||||
American States Water Co.(a) | 99,066 | 4,410,418 | ||||||
American Water Works Co., Inc. | 567,378 | 45,254,069 | ||||||
Aqua America, Inc.(a) | 567,378 | 18,774,538 | ||||||
California Water Service Group(a) | 135,090 | 4,822,713 | ||||||
China Water Affairs Group Ltd. | 2,738,334 | 1,830,826 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 878,938 | 8,001,336 |
See Accompanying Notes to the Financial Statements.
188 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Water Utilities – (continued) | ||||||||
Cia de Saneamento Basico do Estado de Sao Paulo, ADR* | 378,662 | $ | 3,483,691 | |||||
Cia de Saneamento de Minas Gerais-COPASA* | 300,200 | 3,372,886 | ||||||
Guangdong Investment Ltd. | 9,667,576 | 14,965,846 | ||||||
Pennon Group plc | 1,323,882 | 14,678,459 | ||||||
Severn Trent plc | 795,530 | 23,929,293 | ||||||
United Utilities Group plc | 2,197,464 | 27,676,303 | ||||||
176,111,936 | ||||||||
Total Common Stocks (Cost $4,301,484,657) | 4,373,418,912 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(b) – 3.5% | ||||||||
CERTIFICATES OF DEPOSIT – 1.4% | ||||||||
Bank of Montreal, Chicago | ||||||||
1.18%, 9/6/2017 | $ | 7,000,000 | 7,001,001 | |||||
Credit Suisse, New York | ||||||||
1.11%, 8/16/2017 | 6,500,000 | 6,505,980 | ||||||
HSBC, New York | ||||||||
1.34%, 8/1/2017 | 5,000,000 | 5,002,950 | ||||||
KBC Bank NV, Brussels | ||||||||
1.12%, 5/2/2017 | 1,500,000 | 1,499,953 | ||||||
Landesbank Baden-Wurttemberg, London | ||||||||
1.08%, 5/18/2017 | 4,000,000 | 3,997,962 | ||||||
Mizuho Bank Ltd., New York | ||||||||
1.34%, 9/8/2017 | 4,000,000 | 4,001,172 | ||||||
Norinchukin Bank, London | ||||||||
1.13%, 6/20/2017 | 3,000,000 | 2,995,305 | ||||||
Standard Chartered, London | ||||||||
1.16%, 6/8/2017 | 3,000,000 | 2,996,337 | ||||||
Sumitomo Mitsui Banking Corp., New York | ||||||||
1.45%, 5/31/2017 | 1,000,000 | 1,000,031 | ||||||
Sumitomo Mitsui Trust Bank Ltd., New York | ||||||||
1.32%, 9/5/2017 | 1,500,000 | 1,499,889 |
Principal Amount | Value | |||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Swedbank, New York | ||||||||
0.89%, 5/2/2017 | $ | 8,300,000 | $ | 8,300,000 | ||||
The Chiba Bank Ltd., New York Branch | ||||||||
1.22%, 6/7/2017 | 4,000,000 | 4,000,000 | ||||||
Toronto Dominion, New York | ||||||||
1.20%, 6/1/2017 | 5,000,000 | 5,000,244 | ||||||
Wells Fargo Bank (San Francisco) NA | ||||||||
1.41%, 7/27/2017 | 5,250,000 | 5,255,077 | ||||||
Total Certificates of Deposit (Cost $59,042,769) | 59,055,901 | |||||||
COMMERCIAL PAPER – 0.1% | ||||||||
ING (US) Funding LLC | ||||||||
1.11%, 6/9/2017 | 2,500,000 | 2,496,994 | ||||||
Macquarie Bank Ltd. | ||||||||
1.15%, 6/13/2017 | 4,000,000 | 3,994,506 | ||||||
Total Commercial Paper (Cost $6,491,500) | 6,491,500 | |||||||
FUNDING AGREEMENT – 0.1% | ||||||||
United of Omaha Life Insurance 1.18%, 5/30/2017 | 3,000,000 | 3,000,000 | ||||||
MASTER DEMAND NOTE – 0.1% | ||||||||
Natixis Financial Products LLC | 5,000,000 | 5,000,000 | ||||||
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 189 |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
REPURCHASE AGREEMENTS – 1.8% | ||||||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $14,579,964, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $14,870,535 | $ | 14,578,956 | $ | 14,578,956 | ||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $15,601,417, collateralized by various Common Stocks; total market value $17,160,003 | 15,600,000 | 15,600,000 | ||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $17,501,896, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $18,360,208 | 17,500,000 | 17,500,000 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Mizuho Securities USA, Inc., 0.85%, dated 4/28/2017, due 5/1/2017, repurchase price $25,001,771, collateralized by various U.S. Government Agency Mortgage Securities, ranging from 3.00% – 3.50%, maturing 1/20/2047 – 3/20/2047; total market value $25,500,000 | $ | 25,000,000 | $ | 25,000,000 | ||||
ML Pierce Fenner & Smith, Inc., 1.46%, dated 4/28/2017, due 7/31/2017, repurchase price $8,030,498, collateralized by various Common Stocks; total market value $8,800,001 | 8,000,000 | 8,000,000 | ||||||
Total Repurchase Agreements (Cost $80,678,956) | 80,678,956 | |||||||
Total Securities Lending Reinvestments (Cost $154,213,225) | 154,226,357 | |||||||
Total Investments – 103.2% (Cost $4,455,697,882) | 4,527,645,269 | |||||||
Liabilities Less Other Assets – (3.2%) |
| (142,135,025 | ) | |||||
NET ASSETS – 100.0% | $ | 4,385,510,244 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $256,233,951, collateralized in the form of cash with a value of $154,224,604 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $40,580,211 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from 5/18/2017 – 2/15/2047 and $72,895,996 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $267,700,811. |
See Accompanying Notes to the Financial Statements.
190 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
(b) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $154,226,357. |
Percentages shown are based on Net Assets.
Abbreviations:
ADR – American Depositary Receipt
NVDR – Non-Voting Depositary Receipt
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 328,236,621 | ||
Aggregate gross unrealized depreciation | (261,965,973 | ) | ||
Net unrealized appreciation | $ | 66,270,648 | ||
Federal income tax cost of investments | $ | 4,461,374,621 |
Futures Contracts
FlexShares® Morningstar Global Upstream Natural Resources Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation (Depreciation) | |||||||||||||
E-mini S&P 500® Index Futures Contracts | 15 | 06/16/2017 | $ | 1,785,375 | $ | 18,028 | ||||||||||
E-mini S&P MidCap 400® Index Futures Contracts | 5 | 06/16/2017 | 865,000 | 14,944 | ||||||||||||
FTSE 100® Index Futures Contracts | 32 | 06/16/2017 | 2,966,310 | (27,405 | ) | |||||||||||
FTSE/JSE Top 40 Index Futures Contracts | 26 | 06/15/2017 | 923,596 | 51,633 | ||||||||||||
S&P Toronto Stock Exchange 60® Index Futures Contracts | 34 | 06/15/2017 | 4,559,526 | 29,382 | ||||||||||||
SPI 200® Index Futures Contracts | 13 | 06/15/2017 | 1,437,162 | 42,054 | ||||||||||||
$ | 128,636 |
Forward Foreign Currency Contracts
FlexShares® Morningstar Global Upstream Natural Resources Index Fund had the following outstanding contracts as of April 30, 2017:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
AUD | 4,023,200 | Goldman Sachs & Co. | USD | 3,000,000 | 06/21/2017 | $ | 6,028 | |||||||||||||||
AUD | 2,658,765 | Citibank NA | USD | 1,998,865 | 06/21/2017 | (12,307 | ) | |||||||||||||||
AUD | 285,765 | Toronto-Dominion Bank (The) | USD | 219,000 | 06/21/2017 | (5,484 | ) | |||||||||||||||
BRL | 1,242,080 | Morgan Stanley | USD | 382,614 | 06/21/2017 | 1,013 | ||||||||||||||||
CAD | 3,223,349 | Goldman Sachs & Co. | USD | 2,397,535 | 06/21/2017 | (38,253 | ) | |||||||||||||||
CHF | 389,210 | Morgan Stanley | USD | 388,344 | 06/21/2017 | 3,903 | ||||||||||||||||
CHF | 103,123 | Toronto-Dominion Bank (The) | USD | 104,000 | 06/21/2017 | (73 | ) | |||||||||||||||
EUR | 1,200,933 | Societe Generale | USD | 1,286,343 | 06/21/2017 | 24,815 | ||||||||||||||||
EUR | 991,579 | Bank of New York | USD | 1,081,000 | 06/21/2017 | 1,590 | ||||||||||||||||
GBP | 2,247,736 | Goldman Sachs & Co. | USD | 2,900,000 | 06/21/2017 | 12,309 | ||||||||||||||||
GBP | 416,191 | Toronto-Dominion Bank (The) | USD | 519,000 | 06/21/2017 | 20,243 | ||||||||||||||||
JPY | 99,428,944 | Morgan Stanley | USD | 870,496 | 06/21/2017 | 23,310 | ||||||||||||||||
KRW | 62,611,650 | Citibank NA | USD | 54,221 | 06/21/2017 | 834 | ||||||||||||||||
RUB | 27,683,484 | Goldman Sachs & Co. | USD | 455,645 | 06/21/2017 | 24,448 | ||||||||||||||||
USD | 5,160,000 | Toronto-Dominion Bank (The) | AUD | 6,722,996 | 06/21/2017 | 136,757 | ||||||||||||||||
USD | 230,000 | Morgan Stanley | BRL | 730,618 | 06/21/2017 | 4,342 | ||||||||||||||||
USD | 1,200,000 | Morgan Stanley | CAD | 1,629,650 | 06/21/2017 | 8,126 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 191 |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Forward Foreign Currency Contracts (cont.)
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
USD | 850,000 | Toronto-Dominion Bank (The) | CAD | 1,134,958 | 06/21/2017 | $ | 19,284 | |||||||||||||||
USD | 80,000 | Toronto-Dominion Bank (The) | CHF | 79,394 | 06/21/2017 | (13 | ) | |||||||||||||||
USD | 800,000 | Goldman Sachs & Co. | CHF | 793,856 | 06/21/2017 | (49 | ) | |||||||||||||||
USD | 1,010,000 | Goldman Sachs & Co. | EUR | 930,543 | 06/21/2017 | (5,951 | ) | |||||||||||||||
USD | 1,200,000 | Bank of New York | EUR | 1,121,611 | 06/21/2017 | (24,556 | ) | |||||||||||||||
USD | 200,000 | Toronto-Dominion Bank (The) | EUR | 185,344 | 06/21/2017 | (2,355 | ) | |||||||||||||||
USD | 1,100,000 | Morgan Stanley | EUR | 1,009,702 | 06/21/2017 | (2,376 | ) | |||||||||||||||
USD | 804,467 | Citibank NA | GBP | 656,692 | 06/21/2017 | (46,386 | ) | |||||||||||||||
USD | 1,270,000 | Societe Generale | GBP | 1,018,681 | 06/21/2017 | (49,867 | ) | |||||||||||||||
USD | 400,000 | Toronto-Dominion Bank (The) | GBP | 322,545 | 06/21/2017 | (17,910 | ) | |||||||||||||||
USD | 500,000 | Morgan Stanley | JPY | 55,590,920 | 06/21/2017 | 272 | ||||||||||||||||
USD | 1,300,000 | Toronto-Dominion Bank (The) | JPY | 143,884,650 | 06/21/2017 | 6,565 | ||||||||||||||||
USD | 290,000 | Toronto-Dominion Bank (The) | JPY | 32,544,235 | 06/21/2017 | (2,553 | ) | |||||||||||||||
USD | 210,000 | Morgan Stanley | KRW | 237,284,250 | 06/21/2017 | 1,356 | ||||||||||||||||
USD | 100,000 | JPMorgan Chase Bank | RUB | 5,896,863 | 06/21/2017 | (2,265 | ) | |||||||||||||||
$ | 84,797 |
Abbreviations:
AUD – Australian Dollar
BRL – Brazilian Real
CAD – Canadian Dollar
CHF – Swiss Franc
EUR – Euro
GBP – British Pound
JPY – Japanese Yen
KRW – Korean Won
RUB – Russian Ruble
USD – US Dollar
See Accompanying Notes to the Financial Statements.
192 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 7.4 | % | ||
Brazil | 2.1 | |||
Canada | 12.4 | |||
Chile | 0.1 | |||
China | 1.5 | |||
Finland | 1.5 | |||
France | 4.0 | |||
Germany | 0.5 | |||
India | 0.6 | |||
Indonesia | 0.3 | |||
Israel | 0.2 | |||
Italy | 0.8 | |||
Japan | 2.9 | |||
Malaysia | 1.0 | |||
Mexico | 0.6 | �� | ||
Norway | 2.5 | |||
Philippines | 0.1 | |||
Russia | 1.7 | |||
Singapore | 1.2 | |||
South Africa | 0.8 | |||
South Korea | 0.6 | |||
Spain | 0.4 | |||
Sweden | 0.5 | |||
Switzerland | 5.3 | |||
Thailand | 0.3 | |||
United Kingdom | 14.7 | |||
United States | 35.7 | |||
Other1 | 0.3 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 193 |
Table of Contents
Schedule of Investments
FlexShares® STOXX® Global Broad Infrastructure Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.1% | ||||||||
Air Freight & Logistics – 3.3% | ||||||||
bpost SA | 56,240 | $ | 1,347,336 | |||||
CTT-Correios de Portugal SA | 66,120 | 377,215 | ||||||
Deutsche Post AG (Registered) | 604,200 | 21,712,138 | ||||||
Oesterreichische Post AG* (a) | 17,100 | 725,755 | ||||||
PostNL NV | 238,260 | 1,179,734 | ||||||
Royal Mail plc | 592,800 | 3,086,913 | ||||||
Singapore Post Ltd.(a) | 760,000 | 750,376 | ||||||
29,179,467 | ||||||||
Commercial Services & Supplies – 3.1% | ||||||||
Better World Green PCL, NVDR | 2,622,000 | 157,669 | ||||||
China Everbright International Ltd. | 2,627,000 | 3,553,309 | ||||||
Clean Harbors, Inc.* (a) | 12,160 | 706,618 | ||||||
Cleanaway Co. Ltd. | 46,000 | 262,238 | ||||||
Cleanaway Waste Management Ltd. | 1,036,260 | 984,208 | ||||||
Daiseki Co. Ltd. | 22,400 | 499,363 | ||||||
Republic Services, Inc. | 49,780 | 3,135,642 | ||||||
Shanghai Youngsun Investment Co. Ltd., Class B* (b) | 57,800 | 168,892 | ||||||
Stericycle, Inc.* (a) | 16,720 | 1,426,885 | ||||||
Waste Connections, Inc. | 105,640 | 9,702,531 | ||||||
Waste Management, Inc. | 87,020 | 6,333,316 | ||||||
26,930,671 | ||||||||
Diversified Financial Services – 0.1% | ||||||||
Metro Pacific Investments Corp. | 8,740,000 | 1,150,990 | ||||||
Diversified Telecommunication Services – 14.8% | ||||||||
AT&T, Inc. | 1,001,300 | 39,681,519 | ||||||
BCE, Inc. | 151,240 | 6,874,545 | ||||||
BT Group plc | 1,540,520 | 6,073,813 | ||||||
Cellnex Telecom SA(c) | 21,280 | 375,979 | ||||||
CenturyLink, Inc.(a) | 96,140 | 2,467,914 | ||||||
Chunghwa Telecom Co. Ltd. | 853,304 | 2,884,790 | ||||||
Deutsche Telekom AG (Registered) | 558,600 | 9,793,428 | ||||||
Infrastrutture Wireless Italiane SpA(c) | 41,800 | 231,232 |
Shares | Value | |||||||
Diversified Telecommunication Services – (continued) | ||||||||
Level 3 Communications, Inc.* | 46,360 | $ | 2,816,834 | |||||
Nippon Telegraph & Telephone Corp. | 245,700 | 10,511,737 | ||||||
Telefonica SA | 783,940 | 8,669,034 | ||||||
Telesites SAB de CV* | 342,000 | 212,649 | ||||||
Telstra Corp. Ltd. | 2,045,920 | 6,456,774 | ||||||
Verizon Communications, Inc. | 709,840 | 32,588,754 | ||||||
129,639,002 | ||||||||
Electric Utilities – 12.9% | ||||||||
American Electric Power Co., Inc. | 104,120 | 7,062,460 | ||||||
Duke Energy Corp. | 145,160 | 11,975,700 | ||||||
Edison International | 69,160 | 5,530,725 | ||||||
Enel SpA | 3,228,860 | 15,344,117 | ||||||
Exelon Corp. | 193,420 | 6,698,134 | ||||||
Iberdrola SA | 2,426,680 | 17,446,004 | ||||||
NextEra Energy, Inc.(a) | 98,420 | 13,144,975 | ||||||
PG&E Corp. | 105,640 | 7,083,162 | ||||||
PPL Corp. | 144,020 | 5,488,602 | ||||||
Southern Co. (The) | 203,300 | 10,124,340 | ||||||
SSE plc | 424,080 | 7,631,770 | ||||||
Xcel Energy, Inc. | 107,160 | 4,827,558 | ||||||
112,357,547 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.3% | ||||||||
American Tower Corp. | 73,720 | 9,284,297 | ||||||
CoreCivic, Inc. | 22,040 | 759,278 | ||||||
Crown Castle International Corp. | 58,900 | 5,571,940 | ||||||
CyrusOne, Inc. | 14,060 | 768,238 | ||||||
Digital Realty Trust, Inc.(a) | 27,740 | 3,185,662 | ||||||
DuPont Fabros Technology, Inc.(a) | 13,300 | 685,615 | ||||||
Equinix, Inc. | 12,540 | 5,237,958 | ||||||
GEO Group, Inc. (The)(a) | 23,940 | 797,681 | ||||||
Keppel DC REIT | 139,071 | 123,380 | ||||||
SBA Communications Corp.* | 21,280 | 2,691,707 | ||||||
29,105,756 |
See Accompanying Notes to the Financial Statements.
194 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Gas Utilities – 0.5% | ||||||||
APA Group | 410,400 | $ | 2,811,366 | |||||
Petronas Gas Bhd. | 266,000 | 1,132,384 | ||||||
3,943,750 | ||||||||
Health Care Providers & Services – 3.2% | ||||||||
Acadia Healthcare Co., Inc.* (a) | 17,480 | 761,778 | ||||||
Bangkok Dusit Medical Services PCL, NVDR | 6,384,000 | 3,746,609 | ||||||
Bumrungrad Hospital PCL, NVDR | 266,000 | 1,349,610 | ||||||
HCA Holdings, Inc.* | 64,980 | 5,471,966 | ||||||
Healthscope Ltd.(a) | 1,007,760 | 1,665,574 | ||||||
HealthSouth Corp. | 20,140 | 944,566 | ||||||
IHH Healthcare Bhd. | 2,090,000 | 2,975,397 | ||||||
Life Healthcare Group Holdings Ltd.(a) | 716,061 | 1,537,120 | ||||||
LifePoint Health, Inc.* (a) | 7,220 | 448,723 | ||||||
Netcare Ltd. | 773,300 | 1,531,722 | ||||||
Ramsay Health Care Ltd.(a) | 81,700 | 4,380,823 | ||||||
Spire Healthcare Group plc(c) | 193,040 | 843,890 | ||||||
Tenet Healthcare Corp.* (a) | 16,340 | 256,048 | ||||||
Universal Health Services, Inc., Class B | 18,240 | 2,202,662 | ||||||
28,116,488 | ||||||||
Industrial Conglomerates – 0.1% | ||||||||
Beijing Enterprises Holdings Ltd. | 190,000 | 928,313 | ||||||
Media – 6.3% | ||||||||
Altice NV, Class A* (a) | 100,320 | 2,491,297 | ||||||
Charter Communications, Inc., Class A* | 33,820 | 11,673,311 | ||||||
Comcast Corp., Class A | 837,140 | 32,807,517 | ||||||
DISH Network Corp., Class A* | 40,280 | 2,595,643 | ||||||
Liberty Global plc, Series C* | 108,680 | 3,761,415 | ||||||
Sirius XM Holdings, Inc. | 305,140 | 1,510,443 | ||||||
54,839,626 | ||||||||
Multi-Utilities – 8.1% | ||||||||
Consolidated Edison, Inc.(a) | 64,980 | 5,151,614 | ||||||
Dominion Resources, Inc.(a) | 129,960 | 10,062,803 | ||||||
Engie SA(a) | 721,620 | 10,176,215 |
Shares | Value | |||||||
Multi-Utilities – (continued) | ||||||||
National Grid plc | 1,641,600 | $ | 21,238,199 | |||||
Public Service Enterprise Group, Inc. | 107,920 | 4,753,876 | ||||||
Sempra Energy | 53,200 | 6,012,664 | ||||||
Suez(a) | 203,680 | 3,345,813 | ||||||
Veolia Environnement SA(a) | 338,580 | 6,430,070 | ||||||
WEC Energy Group, Inc. | 64,600 | 3,909,592 | ||||||
71,080,846 | ||||||||
Oil, Gas & Consumable Fuels – 9.4% | ||||||||
Enagas SA | 97,280 | 2,558,283 | ||||||
Enbridge Income Fund Holdings, Inc.(a) | 41,420 | 1,014,825 | ||||||
Enbridge, Inc. | 671,134 | 27,772,077 | ||||||
Inter Pipeline Ltd. | 155,420 | 3,161,143 | ||||||
Keyera Corp. | 76,760 | 2,120,963 | ||||||
Kinder Morgan, Inc. | 411,920 | 8,497,910 | ||||||
Koninklijke Vopak NV(a) | 29,260 | 1,319,752 | ||||||
ONEOK, Inc. | 42,560 | 2,239,082 | ||||||
Pembina Pipeline Corp. | 165,697 | 5,271,571 | ||||||
Plains GP Holdings LP, Class A | 18,240 | 543,005 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 717,440 | 1,223,707 | ||||||
Snam SpA | 1,034,360 | 4,570,795 | ||||||
TransCanada Corp. | 357,580 | 16,575,309 | ||||||
Williams Cos., Inc. (The)(a) | 171,000 | 5,237,730 | ||||||
82,106,152 | ||||||||
Road & Rail – 17.8% | ||||||||
Aurizon Holdings Ltd. | 1,229,680 | 4,736,023 | ||||||
Canadian National Railway Co. | 407,360 | 29,396,776 | ||||||
Canadian Pacific Railway Ltd. | 88,540 | 13,544,231 | ||||||
Central Japan Railway Co. | 124,300 | 20,835,610 | ||||||
CSX Corp. | 197,980 | 10,065,303 | ||||||
East Japan Railway Co. | 235,800 | 21,056,367 | ||||||
Hankyu Hanshin Holdings, Inc. | 152,000 | 5,018,032 | ||||||
Kansas City Southern | 21,660 | 1,950,916 | ||||||
Keikyu Corp. | 302,000 | 3,465,130 | ||||||
Keisei Electric Railway Co. Ltd. | 111,300 | 2,646,957 | ||||||
MTR Corp. Ltd.(a) | 870,810 | 5,016,012 | ||||||
Norfolk Southern Corp. | 60,800 | 7,143,392 | ||||||
Tobu Railway Co. Ltd. | 651,000 | 3,299,677 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 195 |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Road & Rail – (continued) | ||||||||
Union Pacific Corp. | 171,760 | $ | 19,230,250 | |||||
West Japan Railway Co. | 114,000 | 7,612,954 | ||||||
155,017,630 | ||||||||
Transportation Infrastructure – 8.5% | ||||||||
Abertis Infraestructuras SA | 412,720 | 7,258,318 | ||||||
Aena SA(c) | 45,220 | 7,977,256 | ||||||
Aeroports de Paris | 19,380 | 2,584,167 | ||||||
Airports of Thailand PCL, NVDR | 2,546,000 | 2,962,605 | ||||||
Atlantia SpA | 281,200 | 7,128,632 | ||||||
Auckland International Airport Ltd. | 546,440 | 2,588,593 | ||||||
Bangkok Expressway & Metro PCL, NVDR | 5,282,000 | 1,099,462 | ||||||
CCR SA | 646,000 | 3,562,411 | ||||||
China Merchants Port Holdings Co. Ltd. | 1,232,925 | 3,527,149 | ||||||
COSCO SHIPPING Ports Ltd. | 909,147 | 995,935 | ||||||
Flughafen Zuerich AG (Registered) | 11,780 | 2,593,979 | ||||||
Groupe Eurotunnel SE (Registered) | 273,980 | 3,008,865 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B | 190,000 | 1,938,270 | ||||||
International Container Terminal Services, Inc. | 1,242,600 | 2,213,377 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 760,000 | 1,121,793 | ||||||
Macquarie Atlas Roads Group | 314,640 | 1,256,521 | ||||||
Promotora y Operadora de Infraestructura SAB de CV | 121,600 | 1,287,011 | ||||||
Qube Holdings Ltd.(a) | 843,220 | 1,658,483 | ||||||
Sydney Airport | 1,353,180 | 6,972,512 | ||||||
Transurban Group | 1,240,700 | 11,319,861 | ||||||
Westports Holdings Bhd. | 760,000 | 700,299 | ||||||
Westshore Terminals Investment Corp. | 35,340 | 616,957 | ||||||
74,372,456 | ||||||||
Water Utilities – 2.9% | ||||||||
Aguas Andinas SA, Class A | 1,805,000 | 1,021,436 | ||||||
American Water Works Co., Inc. | 37,240 | 2,970,262 |
Shares | Value | |||||||
Water Utilities – (continued) | ||||||||
Aqua America, Inc.(a) | 37,240 | $ | 1,232,272 | |||||
Beijing Enterprises Water Group Ltd. | 2,986,000 | 2,288,196 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 228,000 | 2,075,578 | ||||||
Cia de Saneamento do Parana (Preference) | 228,000 | 727,023 | ||||||
Guangdong Investment Ltd. | 1,668,000 | 2,582,140 | ||||||
Pennon Group plc | 247,738 | 2,746,779 | ||||||
Severn Trent plc | 143,260 | 4,309,216 | ||||||
United Utilities Group plc | 408,500 | 5,144,917 | ||||||
25,097,819 | ||||||||
Wireless Telecommunication Services – 4.8% | ||||||||
China Mobile Ltd. | 950,000 | 10,132,047 | ||||||
KDDI Corp. | 313,900 | 8,322,701 | ||||||
SoftBank Group Corp. | 152,000 | 11,511,474 | ||||||
Vodafone Group plc | 4,666,780 | 12,017,935 | ||||||
41,984,157 | ||||||||
Total Common Stocks (Cost $798,072,973) | 865,850,670 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(d) – 5.5% | ||||||||
CERTIFICATES OF DEPOSIT – 1.4% | ||||||||
Credit Suisse, New York | ||||||||
1.11%, 8/16/2017 | $ | 1,000,000 | 1,000,920 | |||||
HSBC, New York | ||||||||
1.34%, 8/1/2017 | 1,000,000 | 1,000,590 | ||||||
Landesbank Baden-Wurttemberg, London | ||||||||
1.08%, 5/18/2017 | 1,000,000 | 999,490 | ||||||
Mizuho Bank Ltd., New York | ||||||||
1.34%, 9/8/2017 | 1,500,000 | 1,500,439 | ||||||
Standard Chartered, London | ||||||||
1.16%, 6/8/2017 | 1,000,000 | 998,779 | ||||||
Sumitomo Mitsui Banking Corp., New York | ||||||||
1.45%, 5/31/2017 | 1,000,000 | 1,000,031 | ||||||
Sumitomo Mitsui Trust Bank Ltd., New York | ||||||||
1.32%, 9/5/2017 | 500,000 | 499,963 |
See Accompanying Notes to the Financial Statements.
196 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(d) – (continued) | ||||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Swedbank, New York | ||||||||
0.89%, 5/2/2017 | $ | 2,000,000 | $ | 2,000,000 | ||||
Toronto Dominion, New York | ||||||||
1.20%, 6/1/2017 | 1,000,000 | 1,000,049 | ||||||
Wells Fargo Bank (San Francisco) NA | ||||||||
1.41%, 7/27/2017 | 1,000,000 | 1,000,967 | ||||||
Total Certificates of Deposit (Cost $10,998,908) | 11,001,228 | |||||||
COMMERCIAL PAPER – 0.3% | ||||||||
ING (US) Funding LLC | ||||||||
1.11%, 6/9/2017 | 1,500,000 | 1,498,196 | ||||||
Macquarie Bank Ltd. | ||||||||
1.15%, 6/13/2017 | 1,500,000 | 1,497,940 | ||||||
Total Commercial Paper (Cost $2,996,136) | 2,996,136 | |||||||
REPURCHASE AGREEMENTS – 3.8% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $3,800,345, collateralized by various Common Stocks; total market value $4,180,001 | 3,800,000 | 3,800,000 | ||||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $16,402,691, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $16,729,588 | 16,401,557 | 16,401,557 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $4,200,455, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $4,406,450 | $ | 4,200,000 | $ | 4,200,000 | ||||
Mizuho Securities USA, Inc., 0.85%, dated 4/28/2017, due 5/1/2017, repurchase price $7,000,496, collateralized by various U.S. Government Agency Mortgage Securities, ranging from 3.00% – 3.50%, maturing 1/20/2047 – 3/20/2047; total market value $7,140,000 | 7,000,000 | 7,000,000 | ||||||
ML Pierce Fenner & Smith, Inc., 1.46%, dated 4/28/2017, due 7/31/2017, repurchase price $2,007,625, collateralized by various Common Stocks; total market value $2,200,000 | 2,000,000 | 2,000,000 | ||||||
Total Repurchase Agreements (Cost $33,401,557) | 33,401,557 | |||||||
Total Securities Lending Reinvestments (Cost $47,396,601) | 47,398,921 | |||||||
Total Investments – 104.6% (Cost $845,469,574) | 913,249,591 | |||||||
Liabilities Less Other Assets – (4.6%) |
| (39,761,585 | ) | |||||
NET ASSETS – 100.0% | $ | 873,488,006 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 197 |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $57,222,583, collateralized in the form of cash with a value of $47,397,378 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $3,312,005 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from 5/18/2017 – 2/15/2047 and $8,407,486 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $59,116,869. |
(b) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $168,892, which represents approximately 0.02% of net assets of the Fund. |
(c) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(d) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $47,398,921. |
Percentages shown are based on Net Assets.
Abbreviations:
NVDR – Non-Voting Depositary Receipt
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 91,211,640 | ||
Aggregate gross unrealized depreciation | (24,434,433 | ) | ||
Net unrealized appreciation | $ | 66,777,207 | ||
Federal income tax cost of investments | $ | 846,472,384 |
Futures Contracts
FlexShares® STOXX® Global Broad Infrastructure Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation (Depreciation) | |||||||||||||
E-mini S&P 500® Index Futures Contracts | 32 | 06/16/2017 | $ | 3,808,800 | $ | 34,075 | ||||||||||
EURO STOXX 50® Index Futures Contracts | 27 | 06/16/2017 | 1,031,410 | 45,563 | ||||||||||||
FTSE 100® Index Futures Contracts | 7 | 06/16/2017 | 648,880 | (6,289 | ) | |||||||||||
Nikkei 225 SGX Index Futures Contracts | 14 | 06/08/2017 | 1,204,764 | 9,029 | ||||||||||||
S&P Toronto Stock Exchange 60® Index Futures Contracts | 7 | 06/15/2017 | 938,726 | 1,420 | ||||||||||||
$ | 83,798 |
Forward Foreign Currency Contracts
FlexShares® STOXX® Global Broad Infrastructure Index Fund had the following outstanding contracts as of April 30, 2017:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
AUD | 96,902 | Toronto-Dominion Bank (The) | USD | 73,000 | 06/21/2017 | $ | (597 | ) | ||||||||||||||
CAD | 373,465 | Goldman Sachs & Co. | USD | 277,784 | 06/21/2017 | (4,432 | ) | |||||||||||||||
CAD | 379,360 | Toronto-Dominion Bank (The) | USD | 284,000 | 06/21/2017 | (6,333 | ) | |||||||||||||||
EUR | 418,439 | Toronto-Dominion Bank (The) | USD | 449,000 | 06/21/2017 | 7,845 | ||||||||||||||||
EUR | 222,636 | Societe Generale | USD | 238,470 | 06/21/2017 | 4,600 | ||||||||||||||||
GBP | 440,399 | Toronto-Dominion Bank (The) | USD | 552,000 | 06/21/2017 | 18,608 | ||||||||||||||||
GBP | 154,018 | Goldman Sachs & Co. | USD | 193,000 | 06/21/2017 | 6,556 | ||||||||||||||||
JPY | 28,186,990 | Toronto-Dominion Bank (The) | USD | 260,000 | 06/21/2017 | (6,616 | ) | |||||||||||||||
JPY | 26,357,363 | Morgan Stanley | USD | 230,757 | 06/21/2017 | 6,179 | ||||||||||||||||
USD | 213,979 | Citibank NA | AUD | 284,621 | 06/21/2017 | 1,318 |
See Accompanying Notes to the Financial Statements.
198 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Forward Foreign Currency Contracts (cont.)
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
USD | 288,740 | Citibank NA | GBP | 235,701 | 06/21/2017 | $ | (16,649 | ) | ||||||||||||||
USD | 440,000 | Toronto-Dominion Bank (The) | JPY | 48,699,420 | 06/21/2017 | 2,222 | ||||||||||||||||
$ | 12,701 |
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
EUR – Euro
GBP – British Pound
JPY – Japanese Yen
USD – US Dollar
FlexShares® STOXX® Global Broad Infrastructure Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 4.8 | % | ||
Austria | 0.1 | |||
Belgium | 0.2 | |||
Brazil | 0.7 | |||
Canada | 13.3 | |||
Chile | 0.1 | |||
China | 2.9 | |||
France | 2.9 | |||
Germany | 3.6 | |||
Hong Kong | 0.6 | |||
Italy | 3.1 | |||
Japan | 10.9 | |||
Malaysia | 0.5 | |||
Mexico | 0.4 | |||
Netherlands | 0.6 | |||
New Zealand | 0.3 | |||
Philippines | 0.4 | |||
Poland | 0.1 | |||
Portugal | 0.0 | † | ||
Singapore | 0.1 | |||
South Africa | 0.4 | |||
Spain | 5.1 | |||
Switzerland | 0.3 | |||
Taiwan | 0.4 | |||
Thailand | 1.1 | |||
United Kingdom | 7.2 | |||
United States | 39.1 | |||
Other1 | 0.8 | |||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 199 |
Table of Contents
Schedule of Investments
FlexShares® Global Quality Real Estate Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 98.7% | ||||||||
Diversified Financial Services – 0.2% | ||||||||
Corp. Financiera Alba SA | 7,350 | $ | 399,389 | |||||
Equity Real Estate Investment Trusts (REITs) – 76.3% | ||||||||
American Homes 4 Rent, Class A | 82,810 | 1,908,771 | ||||||
Apartment Investment & Management Co., Class A | 62,230 | 2,721,940 | ||||||
Ascendas Hospitality Trust | 497,000 | 277,356 | ||||||
AvalonBay Communities, Inc. | 39,830 | 7,561,327 | ||||||
Brookfield Canada Office Properties | 10,990 | 261,387 | ||||||
BWP Trust(a) | 238,000 | 519,726 | ||||||
Camden Property Trust | 34,650 | 2,852,734 | ||||||
Canadian Apartment Properties REIT | 25,620 | 634,644 | ||||||
Champion REIT | 770,000 | 500,955 | ||||||
Chesapeake Lodging Trust | 25,340 | 590,675 | ||||||
Columbia Property Trust, Inc. | 47,600 | 1,071,000 | ||||||
Comforia Residential REIT, Inc. | 140 | 309,967 | ||||||
CoreSite Realty Corp. | 11,200 | 1,095,920 | ||||||
Cousins Properties, Inc.(a) | 94,570 | 802,899 | ||||||
DCT Industrial Trust, Inc. | 35,770 | 1,808,531 | ||||||
Derwent London plc | 31,010 | 1,181,109 | ||||||
Dexus Property Group | 333,410 | 2,543,275 | ||||||
DiamondRock Hospitality Co. | 81,200 | 894,012 | ||||||
Digital Realty Trust, Inc. | 40,180 | 4,614,271 | ||||||
Duke Realty Corp. | 139,230 | 3,860,848 | ||||||
DuPont Fabros Technology, Inc.(a) | 27,160 | 1,400,098 | ||||||
EastGroup Properties, Inc.(a) | 13,090 | 1,024,293 | ||||||
EPR Properties | 25,410 | 1,847,561 | ||||||
Equity Commonwealth* | 48,090 | 1,538,399 | ||||||
Equity LifeStyle Properties, Inc. | 31,780 | 2,571,320 | ||||||
Equity Residential | 120,050 | 7,752,829 | ||||||
Fonciere des Murs SCA | 20,090 | 554,801 | ||||||
Fonciere Des Regions | 2,730 | 243,594 | ||||||
Fortune REIT | 490,000 | 570,797 | ||||||
Four Corners Property Trust, Inc.(a) | 27,580 | 643,441 | ||||||
Frontier Real Estate Investment Corp. | 210 | 916,525 | ||||||
Gecina SA | 15,260 | 2,170,229 | ||||||
Getty Realty Corp.(a) | 18,830 | 482,048 | ||||||
Goodman Group | 173,670 | 1,053,320 |
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Goodman Property Trust | 428,050 | $ | 358,531 | |||||
GPT Group (The) | 704,480 | 2,765,938 | ||||||
Granite REIT | 15,190 | 543,920 | ||||||
Great Portland Estates plc | 89,810 | 804,046 | ||||||
Green REIT plc | 129,850 | 193,011 | ||||||
Grivalia Properties REIC AE | 28,070 | 261,041 | ||||||
H&R REIT | 53,410 | 904,685 | ||||||
Hankyu Reit, Inc. | 350 | 460,617 | ||||||
Hansteen Holdings plc(a) | 466,550 | 747,256 | ||||||
Hersha Hospitality Trust | 28,560 | 526,646 | ||||||
Highwoods Properties, Inc. | 39,480 | 2,008,742 | ||||||
Hospitality Properties Trust | 64,610 | 2,056,536 | ||||||
Host Hotels & Resorts, Inc. | 290,710 | 5,218,245 | ||||||
Investa Office Fund | 232,400 | 825,552 | ||||||
Japan Logistics Fund, Inc.(a) | 350 | 746,972 | ||||||
Killam Apartment REIT | 28,210 | 265,120 | ||||||
Kilroy Realty Corp. | 38,500 | 2,715,405 | ||||||
Kiwi Property Group Ltd. | 515,200 | 504,037 | ||||||
Land Securities Group plc | 124,530 | 1,781,884 | ||||||
LaSalle Hotel Properties | 45,570 | 1,301,479 | ||||||
Liberty Property Trust | 58,310 | 2,365,637 | ||||||
Link REIT | 875,000 | 6,294,559 | ||||||
LTC Properties, Inc.(a) | 14,980 | 716,643 | ||||||
Mapletree Commercial Trust | 483,000 | 551,181 | ||||||
Mapletree Greater China Commercial Trust | 756,000 | 578,751 | ||||||
Mapletree Industrial Trust | 504,000 | 645,460 | ||||||
Medical Properties Trust, Inc. | 54,600 | 713,622 | ||||||
Mirvac Group | 1,206,520 | 2,048,212 | ||||||
Mori Trust Sogo Reit, Inc. | 420 | 655,979 | ||||||
National Health Investors, Inc.(a) | 15,890 | 1,162,671 | ||||||
Nippon Accommodations Fund, Inc. | 185 | 794,967 | ||||||
Nippon Building Fund, Inc. | 380 | 2,021,530 | ||||||
Nomura Real Estate Master Fund, Inc. | 1,123 | 1,618,966 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 58,170 | 1,271,015 | ||||||
Potlatch Corp.(a) | 16,380 | 737,919 | ||||||
Precinct Properties New Zealand Ltd. | 402,150 | 332,696 | ||||||
Prologis, Inc. | 188,790 | 10,272,064 |
See Accompanying Notes to the Financial Statements.
200 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Global Quality Real Estate Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
PS Business Parks, Inc. | 7,840 | $ | 952,874 | |||||
Public Storage | 1,400 | 293,132 | ||||||
Pure Industrial Real Estate Trust | 106,540 | 508,818 | ||||||
Rayonier, Inc. | 49,350 | 1,392,657 | ||||||
Retail Properties of America, Inc., Class A | 100,170 | 1,336,268 | ||||||
RioCan REIT | 58,660 | 1,112,451 | ||||||
RLJ Lodging Trust | 50,470 | 1,084,600 | ||||||
Sabra Health Care REIT, Inc.(a) | 26,180 | 711,834 | ||||||
Safestore Holdings plc | 125,930 | 659,834 | ||||||
Scentre Group | 2,090,550 | 6,738,331 | ||||||
Segro plc | 418,880 | 2,632,135 | ||||||
Sekisui House Reit, Inc. | 280 | 357,441 | ||||||
Select Income REIT | 27,790 | 696,417 | ||||||
Senior Housing Properties Trust | 56,980 | 1,226,210 | ||||||
Silver Bay Realty Trust Corp. | 25,970 | 556,537 | ||||||
Simon Property Group, Inc. | 20,020 | 3,308,505 | ||||||
SL Green Realty Corp. | 6,440 | 675,749 | ||||||
Smart REIT | 26,180 | 619,604 | ||||||
Summit Hotel Properties, Inc. | 37,100 | 613,263 | ||||||
Sunlight REIT | 420,000 | 260,828 | ||||||
Sunstone Hotel Investors, Inc. | 86,240 | 1,284,114 | ||||||
Tanger Factory Outlet Centers, Inc. | 26,390 | 823,104 | ||||||
Tritax Big Box REIT plc | 540,120 | 978,292 | ||||||
Unibail-Rodamco SE | 2,940 | 721,781 | ||||||
Urstadt Biddle Properties, Inc., Class A | 22,190 | 436,255 | ||||||
Vornado Realty Trust | 66,920 | 6,440,381 | ||||||
Washington REIT | 30,380 | 962,135 | ||||||
Weingarten Realty Investors | 45,990 | 1,507,092 | ||||||
Workspace Group plc | 62,650 | 700,707 | ||||||
Xenia Hotels & Resorts, Inc. | 43,260 | 755,320 | ||||||
156,898,806 | ||||||||
Household Durables – 0.4% | ||||||||
Iida Group Holdings Co. Ltd. | 49,600 | 789,364 | ||||||
Industrial Conglomerates – 0.5% | ||||||||
Hopewell Holdings Ltd. | 245,000 | 935,577 | ||||||
Real Estate Management & Development – 21.0% | ||||||||
ADO Properties SA(b) | 3,500 | 128,060 |
Shares | Value | |||||||
Real Estate Management & Development – (continued) | ||||||||
Aeon Mall Co. Ltd. | 49,000 | $ | 832,125 | |||||
Alexander & Baldwin, Inc. | 17,570 | 808,396 | ||||||
Alrov Properties and Lodgings Ltd. | 10,640 | 291,062 | ||||||
Atrium European Real Estate Ltd.* | 70,840 | 298,536 | ||||||
BUWOG AG* | 6,930 | 187,076 | ||||||
CA Immobilien Anlagen AG* | 30,450 | 666,984 | ||||||
China Oceanwide Holdings Ltd.* | 560,000 | 55,442 | ||||||
City Developments Ltd. | 161,000 | 1,242,892 | ||||||
Daejan Holdings plc | 4,690 | 411,996 | ||||||
Daibiru Corp. | 56,000 | 516,444 | ||||||
Daikyo, Inc. | 210,000 | 437,068 | ||||||
Daito Trust Construction Co. Ltd. | 28,000 | 4,119,494 | ||||||
Deutsche EuroShop AG | 18,550 | 752,754 | ||||||
Entra ASA(b) | 50,190 | 577,099 | ||||||
Fabege AB | 53,200 | 916,827 | ||||||
Fastighets AB Balder (Preference) | 7,630 | 292,971 | ||||||
First Capital Realty, Inc. | 54,250 | 787,186 | ||||||
Forestar Group, Inc.* | 37,100 | 524,965 | ||||||
Frasers Centrepoint Ltd. | 224,000 | 304,500 | ||||||
Goldcrest Co. Ltd. | 21,000 | 373,015 | ||||||
GuocoLand Ltd.(a) | 224,000 | 292,480 | ||||||
Heiwa Real Estate Co. Ltd. | 35,000 | 557,639 | ||||||
Henderson Land Development Co. Ltd. | 420,000 | 2,662,278 | ||||||
HKR International Ltd.*(a) | 504,000 | 272,168 | ||||||
Ho Bee Land Ltd. | 161,000 | 281,062 | ||||||
Hongkong Land Holdings Ltd. | 462,000 | 3,562,020 | ||||||
Hufvudstaden AB, Class A | 44,660 | 700,051 | ||||||
Hysan Development Co. Ltd. | 250,000 | 1,179,677 | ||||||
Intershop Holding AG | 560 | 269,607 | ||||||
Klovern AB, Class A*(a) | 216,720 | 226,882 | ||||||
Langham Hospitality Investments and Langham Hospitality Investments Ltd. | 595,000 | 246,337 | ||||||
Leopalace21 Corp. | 98,000 | 520,463 | ||||||
Liu Chong Hing Investment Ltd. | 280,000 | 442,093 | ||||||
Melcor Developments Ltd. | 20,860 | 249,899 | ||||||
Mobimo Holding AG (Registered)* | 2,520 | 677,181 | ||||||
Morguard Corp. | 2,170 | 306,288 | ||||||
Nomura Real Estate Holdings, Inc. | 33,100 | 559,140 | ||||||
Norstar Holdings, Inc. | 12,320 | 253,224 | ||||||
Norwegian Property ASA | 361,690 | 426,437 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 201 |
Table of Contents
FlexShares® Global Quality Real Estate Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
NTT Urban Development Corp. | 56,000 | $ | 504,889 | |||||
Olav Thon Eiendomsselskap ASA | 13,580 | 267,114 | ||||||
PSP Swiss Property AG (Registered) | 16,380 | 1,467,774 | ||||||
Raven Russia Ltd.* | 389,690 | 248,299 | ||||||
Relo Group, Inc. | 40,600 | 666,529 | ||||||
Sagax AB, Class B(a) | 30,240 | 314,360 | ||||||
Sagax AB (Preference) | 48,930 | 177,379 | ||||||
Sponda OYJ | 123,060 | 542,993 | ||||||
St Joe Co. (The)* | 28,000 | 490,000 | ||||||
St Modwen Properties plc | 144,690 | 684,189 | ||||||
Swire Pacific Ltd., Class A | 180,000 | 1,733,451 | ||||||
Swire Pacific Ltd., Class B | 330,000 | 560,074 | ||||||
Swire Properties Ltd. | 182,000 | 610,758 | ||||||
TAG Immobilien AG | 52,710 | 750,199 | ||||||
TOC Co. Ltd.(a) | 35,000 | 318,068 | ||||||
Tokyu Fudosan Holdings Corp. | 133,000 | 725,433 | ||||||
United Industrial Corp. Ltd.* | 119,000 | 269,042 | ||||||
UOL Group Ltd. | 189,000 | 979,008 | ||||||
Wheelock & Co. Ltd. | 318,000 | 2,479,791 | ||||||
Wihlborgs Fastigheter AB(a) | 30,520 | 594,904 | ||||||
Yanlord Land Group Ltd. | 469,000 | 625,803 | ||||||
43,219,875 | ||||||||
Road & Rail – 0.3% | ||||||||
Sotetsu Holdings, Inc. | 140,000 | 650,579 | ||||||
Total Common Stocks (Cost $186,636,890) | 202,893,590 | |||||||
No. of Rights | ||||||||
RIGHT – 0.0%(c) | ||||||||
Equity Real Estate Investment Trusts (REITs) – 0.0%(c) | ||||||||
Tritax Big Box REIT plc, expiring 5/10/2017, price 1.36 GBP (Cost $–)*(d) | 49,101 | 2,541 |
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(e) – 1.9% | ||||||||
CERTIFICATES OF DEPOSIT – 0.7% | ||||||||
HSBC, New York | $ | 500,000 | $ | 500,295 | ||||
Toronto Dominion, New York 1.20%, 6/1/2017 | 500,000 | 500,024 | ||||||
Wells Fargo Bank (San Francisco) NA 1.41%, 7/27/2017 | 500,000 | 500,484 | ||||||
Total Certificates of Deposit (Cost $1,500,304) | 1,500,803 | |||||||
COMMERCIAL PAPER – 0.2% | ||||||||
ING (US) Funding LLC | 400,000 | 399,519 | ||||||
MASTER DEMAND NOTE – 0.0%(c) | ||||||||
Natixis Financial Products LLC 1.16%, 5/1/2017 | 100,000 | 100,000 | ||||||
REPURCHASE AGREEMENTS – 1.0% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $300,027, collateralized by various Common Stocks; total market value $330,000 | 300,000 | 300,000 | ||||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $1,386,848, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $1,414,487 | 1,386,752 | 1,386,752 |
See Accompanying Notes to the Financial Statements.
202 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Global Quality Real Estate Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $350,038, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $367,204 | $ | 350,000 | $ | 350,000 | ||||
Total Repurchase Agreements (Cost $2,036,752) | 2,036,752 | |||||||
Total Securities Lending Reinvestments (Cost $4,036,575) | 4,037,074 | |||||||
Total Investments – 100.6% (Cost $190,673,465) | 206,933,205 | |||||||
Liabilities Less Other Assets – (0.6%) |
| (1,326,944 | ) | |||||
NET ASSETS – 100.0% | $ | 205,606,261 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $5,744,318, collateralized in the form of cash with a value of $4,039,473 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $310,233 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from 5/18/2017 – 2/15/2047 and $1,684,386 of collateral in the form of Foreign Government Fixed |
Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from 6/16/2017 – 7/22/2068; a total value of $6,034,092. |
(b) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(c) | Represents less than 0.05% of net assets. |
(d) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $2,541, which represents approximately 0.00% of net assets of the Fund. |
(e) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $4,037,074. |
Percentages shown are based on Net Assets.
Abbreviations:
GBP – British Pound
OYJ – Public Limited Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SCA – Limited partnership with share capital
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 19,487,153 | ||
Aggregate gross unrealized depreciation | (4,161,471 | ) | ||
Net unrealized appreciation | $ | 15,325,682 | ||
Federal income tax cost of investments | $ | 191,607,523 |
Futures Contracts
FlexShares® Global Quality Real Estate Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation (Depreciation) | |||||||||||||
E-mini S&P 500® Index Futures Contracts | 12 | 06/16/2017 | $ | 1,428,300 | $ | 10,882 | ||||||||||
EURO STOXX 50® Index Futures Contracts | 4 | 06/16/2017 | 152,801 | 6,911 | ||||||||||||
FTSE 100® Index Futures Contract | 1 | 06/16/2017 | 92,697 | (1,382 | ) | |||||||||||
Hang Seng Index Futures Contract | 1 | 05/29/2017 | 157,897 | 3,177 | ||||||||||||
Nikkei 225 SGX Index Futures Contracts | 4 | 06/08/2017 | 344,218 | 6,638 | ||||||||||||
SPI 200® Index Futures Contracts | 4 | 06/15/2017 | 442,204 | 9,999 | ||||||||||||
$ | 36,225 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 203 |
Table of Contents
FlexShares® Global Quality Real Estate Index Fund (cont.)
FlexShares® Global Quality Real Estate Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 8.0 | % | ||
Austria | 0.5 | |||
Canada | 3.0 | |||
Finland | 0.3 | |||
France | 1.8 | |||
Germany | 0.8 | |||
Greece | 0.1 | |||
Hong Kong | 10.6 | |||
Ireland | 0.1 | |||
Israel | 0.3 | |||
Japan | 9.4 | |||
New Zealand | 0.6 | |||
Norway | 0.6 | |||
Singapore | 3.2 | |||
Spain | 0.2 | |||
Sweden | 1.6 | |||
Switzerland | 1.2 | |||
United Kingdom | 5.3 | |||
United States | 51.0 | |||
Other1 | 1.4 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
204 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Real Assets Allocation Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
EXCHANGE TRADED FUNDS – 100.0% | ||||||||
FlexShares Global Quality Real Estate Index Fund(a) | 17,772 | $ | 1,044,283 | |||||
FlexShares Global Upstream Natural Resources Index Fund(a) | 9,560 | 280,012 | ||||||
FlexShares STOXX Global Broad Infrastructure Index Fund(a) | 29,284 | 1,349,407 | ||||||
Total Exchange Traded Funds (Cost $2,564,945) | 2,673,702 | |||||||
Total Investments – 100.0% (Cost $2,564,945) | 2,673,702 | |||||||
Other Assets Less Liabilities – 0.0%(b) | 1,098 | |||||||
NET ASSETS – 100.0% | $ | 2,674,800 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Funds. |
(b) | Represents less than 0.05% of net assets. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 108,182 | ||
Aggregate gross unrealized depreciation | — | |||
Net unrealized appreciation | $ | 108,182 | ||
Federal income tax cost of investments | $ | 2,565,520 |
The underlying index of the FlexShares Real Assets Allocation Index Fund is comprised of securities of affiliated FlexShares Funds. The Schedules of Investments of the affiliated FlexShares Funds are located elsewhere in this Report.
Investment in a company which was affiliated for the period ending April 30, 2017, was as follows:
Security | Value October 31, 2016 | Purchases at Cost | Sales at Cost | Value April 30, 2017 | Dividend Income | Realized Gain (Loss) | ||||||||||||||||||
FlexShares Global Quality Real Estate Index Fund | $ | 626,788 | $ | 633,131 | $ | 248,924 | $ | 1,044,283 | $ | 13,530 | $ | 2,367 | ||||||||||||
FlexShares Global Upstream Natural Resources Index Fund | 136,432 | 150,947 | 14,068 | 280,012 | 1,385 | (466 | ) | |||||||||||||||||
FlexShares STOXX Global Broad Infrastructure Index Fund | 517,936 | 796,099 | 7,525 | 1,349,407 | 7,745 | (68 | ) | |||||||||||||||||
$ | 1,281,156 | $ | 1,580,177 | $ | 270,517 | $ | 2,673,702 | $ | 22,660 | $ | 1,833 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 205 |
Table of Contents
Schedule of Investments
FlexShares® Quality Dividend Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 99.3% | ||||||||
Aerospace & Defense – 3.7% | ||||||||
Boeing Co. (The) | 222,732 | $ | 41,167,556 | |||||
Lockheed Martin Corp. | 80,316 | 21,641,146 | ||||||
62,808,702 | ||||||||
Air Freight & Logistics – 1.3% | ||||||||
United Parcel Service, Inc., Class B | 198,720 | 21,354,451 | ||||||
Banks – 5.2% | ||||||||
Bank of America Corp. | 378,396 | 8,831,763 | ||||||
Citigroup, Inc. | 78,660 | 4,650,379 | ||||||
JPMorgan Chase & Co. | 225,216 | 19,593,792 | ||||||
Wells Fargo & Co. | 1,024,236 | 55,144,866 | ||||||
88,220,800 | ||||||||
Beverages – 0.6% | ||||||||
Coca-Cola Co. (The) | 103,500 | 4,466,025 | ||||||
PepsiCo, Inc. | 45,540 | 5,158,771 | ||||||
9,624,796 | ||||||||
Biotechnology – 0.2% | ||||||||
Amgen, Inc. | 24,840 | 4,056,869 | ||||||
Capital Markets – 2.4% | ||||||||
Ameriprise Financial, Inc. | 74,520 | 9,527,382 | ||||||
Eaton Vance Corp. | 171,396 | 7,358,030 | ||||||
Federated Investors, Inc., Class B | 146,556 | 3,930,632 | ||||||
LPL Financial Holdings, Inc. | 306,360 | 12,879,375 | ||||||
T Rowe Price Group, Inc.(a) | 93,564 | 6,632,752 | ||||||
40,328,171 | ||||||||
Commercial Services & Supplies – 0.4% | ||||||||
Pitney Bowes, Inc. | 277,380 | 3,686,380 | ||||||
RR Donnelley & Sons Co.(a) | 221,076 | 2,778,925 | ||||||
6,465,305 | ||||||||
Communications Equipment – 1.2% | ||||||||
Cisco Systems, Inc. | 584,568 | 19,916,232 | ||||||
Consumer Finance – 0.5% | ||||||||
Navient Corp.(a) | 558,072 | 8,482,694 |
Shares | Value | |||||||
Containers & Packaging – 1.8% | ||||||||
Greif, Inc., Class A(a) | 133,308 | $ | 7,814,515 | |||||
Greif, Inc., Class B | 120,888 | 8,141,807 | ||||||
Packaging Corp. of America(a) | 77,832 | 7,688,245 | ||||||
Sonoco Products Co. | 143,244 | 7,493,093 | ||||||
31,137,660 | ||||||||
Diversified Consumer Services – 0.2% | ||||||||
H&R Block, Inc.(a) | 170,568 | 4,228,381 | ||||||
Diversified Telecommunication Services – 2.7% | ||||||||
AT&T, Inc. | 593,676 | 23,527,380 | ||||||
CenturyLink, Inc.(a) | 178,848 | 4,591,028 | ||||||
Frontier Communications Corp.(a) | 788,256 | 1,481,921 | ||||||
Verizon Communications, Inc. | 359,352 | 16,497,851 | ||||||
46,098,180 | ||||||||
Electric Utilities – 4.0% | ||||||||
ALLETE, Inc.(a) | 146,556 | 10,245,730 | ||||||
Duke Energy Corp. | 116,748 | 9,631,710 | ||||||
Entergy Corp. | 149,040 | 11,365,790 | ||||||
Great Plains Energy, Inc. | 358,524 | 10,608,725 | ||||||
Hawaiian Electric Industries, Inc. | 235,980 | 7,910,050 | ||||||
OGE Energy Corp.(a) | 246,744 | 8,581,756 | ||||||
PPL Corp.(a) | 235,980 | 8,993,198 | ||||||
67,336,959 | ||||||||
Electrical Equipment – 1.1% | ||||||||
Eaton Corp. plc | 62,100 | 4,697,244 | ||||||
Emerson Electric Co. | 240,120 | 14,474,434 | ||||||
19,171,678 | ||||||||
Electronic Equipment, Instruments & Components – 1.3% | ||||||||
Jabil Circuit, Inc. | 382,536 | 11,101,195 | ||||||
TE Connectivity Ltd. | 144,900 | 11,210,913 | ||||||
22,312,108 | ||||||||
Energy Equipment & Services – 1.1% | ||||||||
Helmerich & Payne, Inc.(a) | 137,448 | 8,334,847 |
See Accompanying Notes to the Financial Statements.
206 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Energy Equipment & Services – (continued) | ||||||||
Oceaneering International, Inc. | 383,364 | $ | 10,116,976 | |||||
18,451,823 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 6.5% | ||||||||
CoreCivic, Inc. | 414,000 | 14,262,300 | ||||||
Hospitality Properties Trust | 127,512 | 4,058,707 | ||||||
Host Hotels & Resorts, Inc. | 498,456 | 8,947,285 | ||||||
Lamar Advertising Co., Class A(a) | 128,340 | 9,249,464 | ||||||
LaSalle Hotel Properties | 107,640 | 3,074,198 | ||||||
Lexington Realty Trust | 175,536 | 1,785,201 | ||||||
Omega Healthcare Investors, Inc.(a) | 139,932 | 4,617,756 | ||||||
Retail Properties of America, Inc., Class A | 438,012 | 5,843,080 | ||||||
RLJ Lodging Trust | 373,428 | 8,024,968 | ||||||
Ryman Hospitality Properties, Inc.(a) | 133,308 | 8,502,384 | ||||||
Select Income REIT | 15,732 | 394,244 | ||||||
Senior Housing Properties Trust | 161,460 | 3,474,619 | ||||||
Sunstone Hotel Investors, Inc. | 563,040 | 8,383,666 | ||||||
Uniti Group, Inc.* | 300,564 | 8,253,488 | ||||||
Welltower, Inc. | 194,580 | 13,900,795 | ||||||
WP Carey, Inc.(a) | 114,264 | 7,152,926 | ||||||
109,925,081 | ||||||||
Food & Staples Retailing – 2.3% | ||||||||
Wal-Mart Stores, Inc. | 527,436 | 39,652,638 | ||||||
Health Care Providers & Services – 2.7% | ||||||||
Cardinal Health, Inc. | 126,684 | 9,195,991 | ||||||
Owens & Minor, Inc.(a) | 106,812 | 3,701,036 | ||||||
Patterson Cos., Inc.(a) | 192,096 | 8,546,351 | ||||||
UnitedHealth Group, Inc. | 142,416 | 24,905,710 | ||||||
46,349,088 | ||||||||
Hotels, Restaurants & Leisure – 0.9% | ||||||||
Darden Restaurants, Inc.(a) | 131,652 | 11,215,434 | ||||||
McDonald’s Corp. | 28,152 | 3,939,309 | ||||||
15,154,743 |
Shares | Value | |||||||
Household Durables – 0.8% | ||||||||
Garmin Ltd.(a) | 41,400 | $ | 2,104,776 | |||||
Tupperware Brands Corp.(a) | 160,632 | 11,534,984 | ||||||
13,639,760 | ||||||||
Household Products – 3.3% | ||||||||
Procter & Gamble Co. (The) | 639,216 | 55,822,733 | ||||||
Industrial Conglomerates – 5.1% | ||||||||
3M Co. | 208,656 | 40,861,104 | ||||||
General Electric Co. | 1,586,448 | 45,991,128 | ||||||
86,852,232 | ||||||||
Insurance – 3.8% | ||||||||
Aflac, Inc. | 147,384 | 11,036,114 | ||||||
AmTrust Financial Services, Inc. | 252,540 | 4,053,267 | ||||||
Erie Indemnity Co., Class A | 66,240 | 8,201,837 | ||||||
First American Financial Corp. | 39,744 | 1,725,287 | ||||||
Principal Financial Group, Inc. | 216,936 | 14,129,041 | ||||||
Prudential Financial, Inc. | 150,696 | 16,128,993 | ||||||
Validus Holdings Ltd. | 167,256 | 9,245,912 | ||||||
64,520,451 | ||||||||
Internet & Direct Marketing Retail – 0.5% | ||||||||
HSN, Inc. | 235,152 | 8,677,109 | ||||||
Internet Software & Services – 0.7% | ||||||||
j2 Global, Inc.(a) | 125,028 | 11,282,527 | ||||||
IT Services – 4.3% | ||||||||
Convergys Corp. | 127,512 | 2,870,295 | ||||||
DST Systems, Inc. | 76,176 | 9,378,027 | ||||||
DXC Technology Co.* | 124,200 | 9,357,228 | ||||||
International Business Machines Corp. | 115,920 | 18,580,817 | ||||||
Jack Henry & Associates, Inc. | 103,500 | 10,031,220 | ||||||
Paychex, Inc. | 74,520 | 4,417,546 | ||||||
Science Applications International Corp. | 91,080 | 6,647,929 | ||||||
Visa, Inc., Class A | 45,540 | 4,154,159 | ||||||
Western Union Co. (The)(a) | 341,964 | 6,791,405 | ||||||
72,228,626 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 207 |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Leisure Products – 0.2% | ||||||||
Mattel, Inc. | 117,576 | $ | 2,636,054 | |||||
Machinery – 0.2% | ||||||||
Cummins, Inc. | 27,324 | 4,124,285 | ||||||
Media – 0.3% | ||||||||
Scripps Networks Interactive, Inc., Class A(a) | 9,108 | 680,550 | ||||||
Walt Disney Co. (The) | 43,056 | 4,977,273 | ||||||
5,657,823 | ||||||||
Metals & Mining – 0.6% | ||||||||
Nucor Corp.(a) | 157,320 | 9,648,436 | ||||||
Mortgage Real Estate Investment Trusts (REITs) – 1.1% | ||||||||
Chimera Investment Corp.(a) | 475,272 | 9,676,538 | ||||||
MFA Financial, Inc. | 338,652 | 2,814,198 | ||||||
Two Harbors Investment Corp. | 590,364 | 5,897,736 | ||||||
18,388,472 | ||||||||
Multiline Retail – 1.9% | ||||||||
Kohl’s Corp. | 225,216 | 8,790,181 | ||||||
Macy’s, Inc.(a) | 251,712 | 7,355,025 | ||||||
Nordstrom, Inc.(a) | 178,020 | 8,593,025 | ||||||
Target Corp. | 122,544 | 6,844,082 | ||||||
31,582,313 | ||||||||
Multi-Utilities – 2.0% | ||||||||
Ameren Corp. | 77,004 | 4,211,349 | ||||||
CenterPoint Energy, Inc. | 274,068 | 7,819,160 | ||||||
DTE Energy Co. | 31,464 | 3,290,820 | ||||||
MDU Resources Group, Inc. | 298,908 | 8,040,625 | ||||||
Vectren Corp. | 188,784 | 11,217,545 | ||||||
34,579,499 | ||||||||
Oil, Gas & Consumable Fuels – 5.2% | ||||||||
Chevron Corp. | 182,988 | 19,524,820 | ||||||
Exxon Mobil Corp. | 325,404 | 26,569,237 | ||||||
HollyFrontier Corp.(a) | 112,608 | 3,168,789 | ||||||
Occidental Petroleum Corp. | 195,408 | 12,025,408 | ||||||
ONEOK, Inc. | 170,568 | 8,973,582 | ||||||
Overseas Shipholding Group, Inc., Class A* | 1,651,032 | 6,009,756 |
Shares | Value | |||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Valero Energy Corp. | 192,924 | $ | 12,464,820 | |||||
88,736,412 | ||||||||
Pharmaceuticals – 7.4% | ||||||||
Johnson & Johnson | 167,256 | 20,651,098 | ||||||
Merck & Co., Inc. | 804,816 | 50,164,181 | ||||||
Pfizer, Inc. | 1,591,416 | 53,980,831 | ||||||
124,796,110 | ||||||||
Professional Services – 0.5% | ||||||||
Nielsen Holdings plc | 214,452 | 8,820,411 | ||||||
Semiconductors & Semiconductor Equipment – 4.1% | ||||||||
Applied Materials, Inc. | 343,620 | 13,954,408 | ||||||
KLA-Tencor Corp. | 111,780 | 10,979,032 | ||||||
Maxim Integrated Products, Inc. | 177,192 | 7,823,027 | ||||||
QUALCOMM, Inc. | 150,696 | 8,098,403 | ||||||
Texas Instruments, Inc. | 355,212 | 28,125,686 | ||||||
68,980,556 | ||||||||
Software – 1.9% | ||||||||
Activision Blizzard, Inc. | 105,984 | 5,537,664 | ||||||
CA, Inc. | 226,872 | 7,448,208 | ||||||
Fair Isaac Corp. | 62,928 | 8,525,485 | ||||||
Symantec Corp. | 361,836 | 11,444,873 | ||||||
32,956,230 | ||||||||
Specialty Retail – 5.3% | ||||||||
American Eagle Outfitters, Inc. | 621,000 | 8,749,890 | ||||||
Best Buy Co., Inc.(a) | 253,368 | 13,126,996 | ||||||
GameStop Corp., Class A | 339,480 | 7,702,802 | ||||||
Gap, Inc. (The)(a) | 382,536 | 10,022,443 | ||||||
Home Depot, Inc. (The) | 185,472 | 28,952,179 | ||||||
Staples, Inc. | 933,156 | 9,116,934 | ||||||
Williams-Sonoma, Inc.(a) | 212,796 | 11,501,624 | ||||||
89,172,868 | ||||||||
Technology Hardware, Storage & Peripherals – 5.2% | ||||||||
Apple, Inc. | 332,028 | 47,695,822 | ||||||
HP, Inc. | 719,532 | 13,541,592 | ||||||
NetApp, Inc. | 197,892 | 7,885,996 | ||||||
Seagate Technology plc | 253,368 | 10,674,394 |
See Accompanying Notes to the Financial Statements.
208 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Xerox Corp. | 1,198,116 | $ | 8,614,454 | |||||
88,412,258 | ||||||||
Tobacco – 4.8% | ||||||||
Altria Group, Inc. | 462,024 | 33,164,083 | ||||||
Philip Morris International, Inc. | 432,216 | 47,906,821 | ||||||
81,070,904 | ||||||||
Total Common Stocks (Cost $1,463,987,332) | 1,683,662,428 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(b) – 8.1% | ||||||||
CERTIFICATES OF DEPOSIT – 4.1% |
| |||||||
Bank of Montreal, Chicago | ||||||||
1.18%, 9/6/2017 | $ | 8,000,000 | 8,001,144 | |||||
Bank Of Tokyo UFJ Ltd., New York | ||||||||
1.45%, 9/1/2017 | 1,000,000 | 1,000,303 | ||||||
Credit Suisse, New York | ||||||||
1.11%, 8/16/2017 | 5,100,000 | 5,104,692 | ||||||
HSBC USA, New York | ||||||||
1.34%, 8/1/2017 | 5,000,000 | 5,002,950 | ||||||
Landesbank Baden-Wurttemberg, London | ||||||||
1.08%, 5/18/2017 | 2,100,000 | 2,098,930 | ||||||
Mizuho Bank Ltd., New York | ||||||||
1.34%, 9/8/2017 | 5,000,000 | 5,001,465 | ||||||
Norinchukin Bank London | ||||||||
1.13%, 6/20/2017 | 7,000,000 | 6,989,046 | ||||||
Standard Chartered London | ||||||||
1.16%, 6/8/2017 | 5,000,000 | 4,993,895 | ||||||
Sumitomo Mitsui Trust Bank Ltd., New York | ||||||||
1.32%, 9/5/2017 | 4,000,000 | 3,999,704 | ||||||
Swedbank, New York | ||||||||
0.89%, 5/4/2017 | 6,000,000 | 6,000,000 | ||||||
The Chiba Bank Ltd., New York Branch | ||||||||
1.22%, 6/7/2017 | 5,000,000 | 5,000,000 |
Principal Amount | Value | |||||||
CERTIFICATES OF DEPOSIT – (continued) |
| |||||||
Toronto Dominion, New York | ||||||||
1.20%, 6/1/2017 | $ | 8,000,000 | $ | 8,000,390 | ||||
Wells Fargo Bank (San Francisco) NA | ||||||||
1.15%, 6/8/2017 | 7,200,000 | 7,200,296 | ||||||
Total Certificates of Deposit (Cost $68,382,215) | 68,392,815 | |||||||
COMMERCIAL PAPER – 1.0% |
| |||||||
DBS Bank Ltd. | ||||||||
1.00%, 5/17/2017 | 7,000,000 | 6,996,889 | ||||||
ING (US) Funding LLC | ||||||||
1.11%, 6/9/2017 | 2,500,000 | 2,496,994 | ||||||
Macquarie Bank Ltd. | ||||||||
1.15%, 6/13/2017 | 7,500,000 | 7,489,698 | ||||||
Total Commercial Paper (Cost $16,983,581) | 16,983,581 | |||||||
FUNDING AGREEMENT – 0.2% | ||||||||
United of Omaha Life Insurance 1.18%, 5/30/2017 | 4,000,000 | 4,000,000 | ||||||
REPURCHASE AGREEMENTS – 2.8% |
| |||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $11,301,026, collateralized by various Common Stock; total market value $12,430,002 | 11,300,000 | 11,300,000 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 209 |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $6,108,678, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $6,230,420 | $ | 6,108,255 | $ | 6,108,255 | ||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $12,501,354, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $13,114,435 | 12,500,000 | 12,500,000 | ||||||
Mizuho Securities USA, Inc., 0.85%, dated 4/28/2017, due 5/1/2017, repurchase price $10,000,708, collateralized by various U.S. Government Agency Mortgage Securities, ranging from 3.00% – 3.50%, maturing 1/20/2047 – 3/20/2047; total market value $10,200,000 | 10,000,000 | 10,000,000 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Ml Pierce Fenner & Smith, Inc., 1.46%, dated 4/28/2017, due 7/31/2017, repurchase price $8,030,498, collateralized by various Common Stocks; total market value $8,800,001 | $ | 8,000,000 | $ | 8,000,000 | ||||
Total Repurchase Agreements (Cost $47,908,255) | 47,908,255 | |||||||
Total Securities Lending Reinvestments (Cost $137,274,051) | 137,284,651 | |||||||
Total Investments – 107.4% (Cost $1,601,261,383) | 1,820,947,079 | |||||||
Liabilities Less Other Assets – (7.4%) |
| (125,238,754 | ) | |||||
NET ASSETS – 100.0% | $ | 1,695,708,325 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $138,217,983, collateralized in the form of cash with a value of $137,357,805 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $1,187,839 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.13%, and maturity dates ranging from 6/1/2017 – 11/15/2046 and $4,134,172 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $142,679,816. |
(b) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $137,284,651. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 241,763,248 | ||
Aggregate gross unrealized depreciation | (22,180,409 | ) | ||
Net unrealized appreciation | $ | 219,582,839 | ||
Federal income tax cost of investments | $ | 1,601,364,240 |
See Accompanying Notes to the Financial Statements.
210 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Futures Contracts
FlexShares® Quality Dividend Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation | |||||||||||||
E-mini S&P 500® Index Futures Contracts | 101 | 06/16/2017 | $ | 12,021,525 | $ | 105,695 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 211 |
Table of Contents
Schedule of Investments
FlexShares® Quality Dividend Defensive Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 98.6% | ||||||||
Aerospace & Defense – 3.9% | ||||||||
Boeing Co. (The) | 38,760 | $ | 7,164,011 | |||||
Lockheed Martin Corp. | 17,632 | 4,750,942 | ||||||
11,914,953 | ||||||||
Air Freight & Logistics – 1.9% | ||||||||
CH Robinson Worldwide, Inc.(a) | 13,528 | 983,486 | ||||||
United Parcel Service, Inc., Class B | 45,904 | 4,932,844 | ||||||
5,916,330 | ||||||||
Airlines – 0.3% | ||||||||
Allegiant Travel Co.(a) | 5,624 | 817,730 | ||||||
Banks – 5.6% | ||||||||
Bank of America Corp. | 69,464 | 1,621,290 | ||||||
Bank of Hawaii Corp.(a) | 19,000 | 1,548,120 | ||||||
Citigroup, Inc. | 22,496 | 1,329,963 | ||||||
JPMorgan Chase & Co. | 30,856 | 2,684,472 | ||||||
People’s United Financial, Inc. | 17,024 | 297,409 | ||||||
Wells Fargo & Co. | 180,120 | 9,697,661 | ||||||
17,178,915 | ||||||||
Beverages – 1.1% | ||||||||
Coca-Cola Co. (The) | 12,464 | 537,822 | ||||||
PepsiCo, Inc. | 24,776 | 2,806,625 | ||||||
3,344,447 | ||||||||
Biotechnology – 0.1% | ||||||||
Amgen, Inc. | 1,520 | 248,246 | ||||||
Capital Markets – 0.6% | ||||||||
T Rowe Price Group, Inc. | 23,408 | 1,659,393 | ||||||
Chemicals – 0.6% | ||||||||
LyondellBasell Industries NV, Class A | 16,568 | 1,404,304 | ||||||
Scotts Miracle-Gro Co. (The) | 3,648 | 352,397 | ||||||
1,756,701 | ||||||||
Commercial Services & Supplies – 0.6% | ||||||||
Pitney Bowes, Inc. | 70,376 | 935,297 |
Shares | Value | |||||||
Commercial Services & Supplies – (continued) | ||||||||
Rollins, Inc.(a) | 24,016 | $ | 932,541 | |||||
1,867,838 | ||||||||
Communications Equipment – 1.4% | ||||||||
Brocade Communications Systems, Inc. | 24,928 | 313,345 | ||||||
Cisco Systems, Inc. | 101,232 | 3,448,974 | ||||||
Motorola Solutions, Inc. | 6,536 | 561,900 | ||||||
4,324,219 | ||||||||
Consumer Finance – 0.5% | ||||||||
Navient Corp.(a) | 92,112 | 1,400,102 | ||||||
Containers & Packaging – 0.9% | ||||||||
Greif, Inc., Class B | 19,304 | 1,300,124 | ||||||
Sonoco Products Co. | 24,776 | 1,296,033 | ||||||
2,596,157 | ||||||||
Diversified Consumer Services – 0.6% | ||||||||
H&R Block, Inc.(a) | 78,280 | 1,940,561 | ||||||
Diversified Telecommunication Services – 3.3% | ||||||||
AT&T, Inc. | 116,280 | 4,608,176 | ||||||
CenturyLink, Inc. | 46,816 | 1,201,767 | ||||||
Frontier Communications Corp.(a) | 168,112 | 316,051 | ||||||
Verizon Communications, Inc. | 85,272 | 3,914,837 | ||||||
10,040,831 | ||||||||
Electric Utilities – 4.0% | ||||||||
ALLETE, Inc.(a) | 10,488 | 733,216 | ||||||
American Electric Power Co., Inc. | 22,192 | 1,505,283 | ||||||
Avangrid, Inc. | 6,992 | 304,152 | ||||||
Duke Energy Corp. | 15,504 | 1,279,080 | ||||||
Entergy Corp. | 26,600 | 2,028,516 | ||||||
FirstEnergy Corp. | 19,152 | 573,411 | ||||||
Great Plains Energy, Inc. | 60,192 | 1,781,081 | ||||||
Hawaiian Electric Industries, Inc. | 46,360 | 1,553,987 | ||||||
PPL Corp. | 45,752 | 1,743,609 | ||||||
Xcel Energy, Inc. | 17,632 | 794,322 | ||||||
12,296,657 |
See Accompanying Notes to the Financial Statements.
212 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – 0.6% | ||||||||
Emerson Electric Co. | 31,312 | $ | 1,887,487 | |||||
Electronic Equipment, Instruments & Components – 1.6% | ||||||||
FLIR Systems, Inc. | 11,400 | 418,722 | ||||||
Jabil Circuit, Inc. | 78,736 | 2,284,919 | ||||||
National Instruments Corp.(a) | 6,232 | 217,559 | ||||||
TE Connectivity Ltd. | 26,752 | 2,069,802 | ||||||
4,991,002 | ||||||||
Energy Equipment & Services – 0.5% | ||||||||
Helmerich & Payne, Inc.(a) | 27,056 | 1,640,676 | ||||||
Equity Real Estate Investment Trusts (REITs) – 6.4% | ||||||||
Apple Hospitality REIT, Inc. | 2,432 | 45,551 | ||||||
CoreCivic, Inc. | 12,642 | 435,517 | ||||||
Crown Castle International Corp. | 5,624 | 532,030 | ||||||
Digital Realty Trust, Inc. | 14,136 | 1,623,378 | ||||||
EPR Properties | 9,576 | 696,271 | ||||||
HCP, Inc. | 152 | 4,765 | ||||||
Hospitality Properties Trust | 17,024 | 541,874 | ||||||
LaSalle Hotel Properties | 38,608 | 1,102,645 | ||||||
Lexington Realty Trust | 1,064 | 10,821 | ||||||
Medical Properties Trust, Inc. | 3,344 | 43,706 | ||||||
National Health Investors, Inc.(a) | 12,616 | 923,113 | ||||||
Omega Healthcare Investors, Inc.(a) | 7,600 | 250,800 | ||||||
Retail Properties of America, Inc., Class A | 57,456 | 766,463 | ||||||
RLJ Lodging Trust | 68,704 | 1,476,449 | ||||||
Ryman Hospitality Properties, Inc.(a) | 23,712 | 1,512,351 | ||||||
Select Income REIT | 152 | 3,809 | ||||||
Senior Housing Properties Trust | 29,488 | 634,582 | ||||||
Spirit Realty Capital, Inc. | 26,144 | 246,276 | ||||||
Sunstone Hotel Investors, Inc. | 81,928 | 1,219,908 | ||||||
Uniti Group, Inc.* | 57,152 | 1,569,394 | ||||||
Ventas, Inc. | 21,432 | 1,371,862 | ||||||
Welltower, Inc. | 32,072 | 2,291,224 | ||||||
WP Carey, Inc.(a) | 34,656 | 2,169,466 | ||||||
19,472,255 | ||||||||
Food & Staples Retailing – 2.4% | ||||||||
Wal-Mart Stores, Inc. | 97,736 | 7,347,793 |
Shares | Value | |||||||
Food Products – 1.0% | ||||||||
Conagra Brands, Inc. | 43,320 | $ | 1,679,950 | |||||
Hershey Co. (The)(a) | 12,768 | 1,381,497 | ||||||
3,061,447 | ||||||||
Health Care Providers & Services – 3.3% | ||||||||
Anthem, Inc. | 16,112 | 2,866,164 | ||||||
Cardinal Health, Inc. | 22,192 | 1,610,917 | ||||||
Owens & Minor, Inc.(a) | 44,840 | 1,553,706 | ||||||
UnitedHealth Group, Inc. | 23,560 | 4,120,173 | ||||||
10,150,960 | ||||||||
Hotels, Restaurants & Leisure – 4.7% | ||||||||
Brinker International, Inc.(a) | 35,568 | 1,571,750 | ||||||
Cracker Barrel Old Country Store, Inc. | 1,824 | 292,186 | ||||||
Darden Restaurants, Inc.(a) | 24,624 | 2,097,719 | ||||||
Dunkin’ Brands Group, Inc. | 17,328 | 967,942 | ||||||
McDonald’s Corp. | 57,304 | 8,018,549 | ||||||
Papa John’s International, Inc. | 16,416 | 1,297,849 | ||||||
14,245,995 | ||||||||
Household Durables – 0.8% | ||||||||
Garmin Ltd. | 7,752 | 394,112 | ||||||
Tupperware Brands Corp. | 26,600 | 1,910,146 | ||||||
2,304,258 | ||||||||
Household Products – 2.8% | ||||||||
Clorox Co. (The) | 8,664 | 1,158,290 | ||||||
Procter & Gamble Co. (The) | 83,600 | 7,300,788 | ||||||
8,459,078 | ||||||||
Industrial Conglomerates – 1.3% | ||||||||
3M Co. | 760 | 148,831 | ||||||
General Electric Co. | 133,304 | 3,864,483 | ||||||
4,013,314 | ||||||||
Insurance – 4.4% | ||||||||
Allied World Assurance Co. Holdings AG | 25,536 | 1,355,706 | ||||||
Assurant, Inc. | 4,256 | 409,598 | ||||||
Axis Capital Holdings Ltd. | 24,320 | 1,602,688 | ||||||
Cincinnati Financial Corp.(a) | 5,472 | 394,477 | ||||||
Erie Indemnity Co., Class A | 13,984 | 1,731,499 | ||||||
Everest Re Group Ltd. | 7,600 | 1,912,996 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 213 |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
First American Financial Corp. | 24,624 | $ | 1,068,928 | |||||
FNF Group | 3,040 | 124,488 | ||||||
Mercury General Corp. | 6,080 | 373,859 | ||||||
Old Republic International Corp. | 21,584 | 446,357 | ||||||
ProAssurance Corp. | 6,992 | 432,805 | ||||||
Progressive Corp. (The) | 50,920 | 2,022,542 | ||||||
Validus Holdings Ltd. | 28,576 | 1,579,681 | ||||||
13,455,624 | ||||||||
Internet & Direct Marketing Retail – 0.3% | ||||||||
HSN, Inc. | 26,448 | 975,931 | ||||||
Internet Software & Services – 0.6% | ||||||||
j2 Global, Inc.(a) | 19,608 | 1,769,426 | ||||||
IT Services – 4.1% | ||||||||
Amdocs Ltd. | 16,720 | 1,023,933 | ||||||
Automatic Data Processing, Inc. | 10,944 | 1,143,539 | ||||||
Convergys Corp. | 456 | 10,265 | ||||||
DXC Technology Co.* | 22,952 | 1,729,204 | ||||||
International Business Machines Corp. | 21,736 | 3,484,063 | ||||||
Jack Henry & Associates, Inc. | 15,048 | 1,458,452 | ||||||
Paychex, Inc. | 27,816 | 1,648,932 | ||||||
Visa, Inc., Class A | 3,344 | 305,040 | ||||||
Western Union Co. (The)(a) | 86,640 | 1,720,670 | ||||||
12,524,098 | ||||||||
Leisure Products – 0.0%(b) | ||||||||
Mattel, Inc. | 456 | 10,224 | ||||||
Machinery – 0.6% | ||||||||
Toro Co. (The) | 29,032 | 1,884,757 | ||||||
Media – 0.5% | ||||||||
Meredith Corp.(a) | 4,712 | 275,888 | ||||||
Regal Entertainment Group, Class A(a) | 16,416 | 362,301 | ||||||
Walt Disney Co. (The) | 8,360 | 966,416 | ||||||
1,604,605 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 1.1% | ||||||||
Chimera Investment Corp. | 89,680 | 1,825,885 | ||||||
MFA Financial, Inc. | 62,320 | 517,879 |
Shares | Value | |||||||
Mortgage Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Two Harbors Investment Corp. | 97,888 | $ | 977,901 | |||||
3,321,665 | ||||||||
Multiline Retail – 2.2% | ||||||||
Kohl’s Corp. | 39,824 | 1,554,331 | ||||||
Macy’s, Inc.(a) | 53,656 | 1,567,828 | ||||||
Nordstrom, Inc.(a) | 30,096 | 1,452,734 | ||||||
Target Corp. | 37,240 | 2,079,854 | ||||||
6,654,747 | ||||||||
Multi-Utilities – 2.2% | ||||||||
Ameren Corp. | 32,528 | 1,778,956 | ||||||
CenterPoint Energy, Inc. | 54,416 | 1,552,488 | ||||||
CMS Energy Corp. | 19,608 | 890,203 | ||||||
Consolidated Edison, Inc. | 5,928 | 469,972 | ||||||
DTE Energy Co. | 15,200 | 1,589,768 | ||||||
WEC Energy Group, Inc. | 5,928 | 358,763 | ||||||
6,640,150 | ||||||||
Oil, Gas & Consumable Fuels – 5.2% | ||||||||
Chevron Corp. | 38,608 | 4,119,474 | ||||||
Exxon Mobil Corp. | 71,136 | 5,808,254 | ||||||
HollyFrontier Corp.(a) | 6,232 | 175,368 | ||||||
Occidental Petroleum Corp. | 51,224 | 3,152,325 | ||||||
ONEOK, Inc. | 41,344 | 2,175,108 | ||||||
Overseas Shipholding Group, Inc., Class A* | 131,176 | 477,481 | ||||||
15,908,010 | ||||||||
Pharmaceuticals – 7.2% | ||||||||
Eli Lilly & Co. | 24,320 | 1,995,699 | ||||||
Johnson & Johnson | 27,512 | 3,396,907 | ||||||
Merck & Co., Inc. | 146,832 | 9,152,039 | ||||||
Pfizer, Inc. | 222,224 | 7,537,838 | ||||||
22,082,483 | ||||||||
Professional Services – 0.3% | ||||||||
Nielsen Holdings plc | 23,864 | 981,526 | ||||||
Semiconductors & Semiconductor Equipment – 4.6% | ||||||||
Analog Devices, Inc. | 7,450 | 567,675 | ||||||
KLA-Tencor Corp. | 10,488 | 1,030,131 | ||||||
Maxim Integrated Products, Inc. | 36,024 | 1,590,460 | ||||||
Microchip Technology, Inc.(a) | 22,496 | 1,700,248 |
See Accompanying Notes to the Financial Statements.
214 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
QUALCOMM, Inc. | 40,280 | $ | 2,164,647 | |||||
Skyworks Solutions, Inc. | 18,392 | 1,834,418 | ||||||
Texas Instruments, Inc. | 64,144 | 5,078,922 | ||||||
13,966,501 | ||||||||
Software – 1.4% | ||||||||
Activision Blizzard, Inc. | 14,288 | 746,548 | ||||||
CA, Inc.(a) | 51,680 | 1,696,654 | ||||||
CDK Global, Inc. | 2,432 | 158,104 | ||||||
Symantec Corp. | 54,112 | 1,711,563 | ||||||
4,312,869 | ||||||||
Specialty Retail – 2.9% | ||||||||
American Eagle Outfitters, Inc. | 110,200 | 1,552,718 | ||||||
GameStop Corp., Class A | 33,288 | 755,305 | ||||||
Gap, Inc. (The)(a) | 59,584 | 1,561,101 | ||||||
Home Depot, Inc. (The) | 9,424 | 1,471,086 | ||||||
L Brands, Inc. | 304 | 16,054 | ||||||
Staples, Inc. | 165,984 | 1,621,664 | ||||||
Williams-Sonoma, Inc.(a) | 36,936 | 1,996,391 | ||||||
8,974,319 | ||||||||
Technology Hardware, Storage & Peripherals – 4.5% | ||||||||
Apple, Inc. | 58,976 | 8,471,902 | ||||||
HP, Inc. | 123,424 | 2,322,840 | ||||||
Seagate Technology plc | 48,032 | 2,023,588 | ||||||
Xerox Corp. | 130,416 | 937,691 | ||||||
13,756,021 | ||||||||
Textiles, Apparel & Luxury Goods – 0.9% | ||||||||
Coach, Inc. | 17,176 | 676,563 | ||||||
VF Corp. | 39,216 | 2,142,370 | ||||||
2,818,933 | ||||||||
Tobacco – 4.5% | ||||||||
Altria Group, Inc. | 129,808 | 9,317,618 | ||||||
Philip Morris International, Inc. | 13,072 | 1,448,901 | ||||||
Reynolds American, Inc. | 47,880 | 3,088,260 | ||||||
Vector Group Ltd. | 608 | 13,206 | ||||||
13,867,985 |
Shares | Value | |||||||
Trading Companies & Distributors – 0.3% | ||||||||
Watsco, Inc. | 5,928 | $ | 822,806 | |||||
Total Common Stocks (Cost $262,832,717) | 301,210,025 | |||||||
No. of Rights | ||||||||
RIGHTS – 0.0%(b) | ||||||||
Food & Staples Retailing – 0.0%(b) | ||||||||
Safeway, Inc. (Casa Ley subsidiary), CVR* (c) | 8,450 | 8,576 | ||||||
Safeway, Inc. (PDC subsidiary), CVR* (c) | 8,450 | 412 | ||||||
Total Rights (Cost $–) | 8,988 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(d) – 8.6% |
| |||||||
CERTIFICATES OF DEPOSIT – 2.4% | ||||||||
Credit Suisse, New York | ||||||||
1.11%, 8/16/2017 | $ | 1,000,000 | 1,000,920 | |||||
HSBC, New York | ||||||||
1.34%, 8/1/2017 | 1,000,000 | 1,000,590 | ||||||
Landesbank Baden-Wurttemberg, London | ||||||||
1.08%, 5/18/2017 | 1,000,000 | 999,490 | ||||||
Mizuho Bank Ltd., New York | ||||||||
1.34%, 9/8/2017 | 500,000 | 500,146 | ||||||
Standard Chartered London | ||||||||
1.16%, 6/8/2017 | 500,000 | 499,389 | ||||||
Sumitomo Mitsui Trust Bank Ltd., New York | ||||||||
1.32%, 9/5/2017 | 500,000 | 499,963 | ||||||
Swedbank, New York | ||||||||
0.89%, 5/2/2017 | 1,000,000 | 1,000,000 | ||||||
Toronto Dominion, New York | ||||||||
1.20%, 6/1/2017 | 1,000,000 | 1,000,049 | ||||||
Wells Fargo Bank (San Francisco) NA | ||||||||
1.41%, 7/27/2017 | 1,000,000 | 1,000,967 | ||||||
Total Certificates of Deposit (Cost $7,499,487) | 7,501,514 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 215 |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(d) – (continued) | ||||||||
COMMERCIAL PAPER – 0.7% | ||||||||
ING (US) Funding LLC | ||||||||
1.11%, 6/9/2017 | $ | 1,200,000 | $ | 1,198,557 | ||||
Macquarie Bank Ltd. | ||||||||
1.15%, 6/13/2017 | 1,000,000 | 998,626 | ||||||
Total Commercial Paper (Cost $2,197,183) | 2,197,183 | |||||||
MASTER DEMAND NOTE – 0.2% |
| |||||||
Natixis Financial Products LLC 1.16%, 5/1/2017 | 500,000 | 500,000 | ||||||
REPURCHASE AGREEMENTS – 5.3% |
| |||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $2,000,182, collateralized by various Common Stocks; total market value $2,200,000 | 2,000,000 | 2,000,000 | ||||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $8,998,192, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $9,177,522 | 8,997,570 | 8,997,570 | ||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $2,200,238, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $2,308,140 | 2,200,000 | 2,200,000 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Mizuho Securities USA, Inc., 0.85%, dated 4/28/2017, due 5/1/2017, repurchase price $2,000,142, collateralized by various U.S. Government Agency Mortgage Securities, ranging from 3.00% —3.50%, maturing 1/20/2047 —3/20/2047; total market value $2,040,000 | $ | 2,000,000 | $ | 2,000,000 | ||||
Ml Pierce Fenner & Smith, Inc., 1.46%, dated 4/28/2017, due 7/31/2017, repurchase price $1,003,812, collateralized by various Common Stocks; total market value $1,100,000 | 1,000,000 | 1,000,000 | ||||||
Total Repurchase Agreements (Cost $16,197,570) | 16,197,570 | |||||||
Total Securities Lending Reinvestments (Cost $26,394,240) | 26,396,267 | |||||||
Total Investments – 107.2% (Cost $289,226,957) | 327,615,280 | |||||||
Liabilities Less Other Assets – (7.2%) |
| (22,016,829 | ) | |||||
NET ASSETS – 100.0% | $ | 305,598,451 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $25,896,606, collateralized in the form of cash with a value of $26,396,870 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $14,011 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.63% – 6.00%, and maturity dates ranging from 9/30/2017 – 11/15/2046 and $357,023 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $26,767,904. |
(b) | Represents less than 0.05% of net assets. |
(c) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $8,988, which represents approximately 0.00% of net assets of the Fund. |
(d) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $26,396,267. |
See Accompanying Notes to the Financial Statements.
216 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Percentages shown are based on Net Assets.
Abbreviations:
CVR – Contingent Value Rights
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 40,810,440 | ||
Aggregate gross unrealized depreciation | (2,380,196 | ) | ||
Net unrealized appreciation | $ | 38,430,244 | ||
Federal income tax cost of investments | $ | 289,185,036 |
Futures Contracts
FlexShares® Quality Dividend Defensive Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation | |||||||||||||
E-mini S&P 500® Index Futures Contracts | 36 | 06/16/2017 | $ | 4,284,900 | $ | 33,967 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 217 |
Table of Contents
Schedule of Investments
FlexShares® Quality Dividend Dynamic Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 98.3% | ||||||||
Aerospace & Defense – 2.2% | ||||||||
Boeing Co. (The) | 8,228 | $ | 1,520,781 | |||||
Air Freight & Logistics – 1.5% | ||||||||
United Parcel Service, Inc., Class B | 9,248 | 993,790 | ||||||
Banks – 7.8% | ||||||||
Bank of America Corp. | 15,912 | 371,386 | ||||||
Citigroup, Inc. | 2,482 | 146,736 | ||||||
JPMorgan Chase & Co. | 29,716 | 2,585,292 | ||||||
Wells Fargo & Co. | 40,936 | 2,203,994 | ||||||
5,307,408 | ||||||||
Beverages – 0.4% | ||||||||
Coca-Cola Co. (The) | 3,638 | 156,980 | ||||||
PepsiCo, Inc. | 1,190 | 134,803 | ||||||
291,783 | ||||||||
Biotechnology – 1.8% | ||||||||
AbbVie, Inc. | 9,622 | 634,475 | ||||||
Amgen, Inc. | 3,604 | 588,605 | ||||||
1,223,080 | ||||||||
Capital Markets – 4.9% | ||||||||
Ameriprise Financial, Inc. | 3,196 | 408,609 | ||||||
BGC Partners, Inc., Class A | 6,664 | 75,836 | ||||||
BlackRock, Inc. | 544 | 209,206 | ||||||
Eaton Vance Corp. | 7,956 | 341,551 | ||||||
Federated Investors, Inc., Class B | 10,268 | 275,388 | ||||||
Franklin Resources, Inc. | 9,860 | 425,065 | ||||||
Invesco Ltd. | 4,692 | 154,554 | ||||||
LPL Financial Holdings, Inc. | 8,568 | 360,199 | ||||||
Morgan Stanley | 14,552 | 631,120 | ||||||
T Rowe Price Group, Inc. | 6,290 | 445,898 | ||||||
3,327,426 | ||||||||
Chemicals – 2.5% | ||||||||
EI du Pont de Nemours & Co. | 12,478 | 995,121 | ||||||
Huntsman Corp. | 4,488 | 111,168 | ||||||
LyondellBasell Industries NV, Class A | 2,720 | 230,547 | ||||||
Trinseo SA | 5,576 | 370,246 | ||||||
1,707,082 |
Shares | Value | |||||||
Commercial Services & Supplies – 0.7% | ||||||||
Pitney Bowes, Inc. | 20,876 | $ | 277,442 | |||||
RR Donnelley & Sons Co. | 15,674 | 197,022 | ||||||
474,464 | ||||||||
Communications Equipment – 1.2% | ||||||||
Cisco Systems, Inc. | 23,732 | 808,549 | ||||||
Consumer Finance – 0.5% | ||||||||
Navient Corp. | 23,732 | 360,726 | ||||||
Containers & Packaging – 1.8% | ||||||||
Greif, Inc., Class A | 7,038 | 412,568 | ||||||
Greif, Inc., Class B | 3,706 | 249,599 | ||||||
International Paper Co. | 2,550 | 137,623 | ||||||
Packaging Corp. of America | 4,250 | 419,815 | ||||||
1,219,605 | ||||||||
Diversified Consumer Services – 0.7% | ||||||||
H&R Block, Inc. | 19,754 | 489,702 | ||||||
Diversified Telecommunication Services – 3.3% | ||||||||
AT&T, Inc. | 25,296 | 1,002,481 | ||||||
CenturyLink, Inc. | 12,648 | 324,674 | ||||||
Frontier Communications Corp.(a) | 32,572 | 61,235 | ||||||
Verizon Communications, Inc. | 19,040 | 874,126 | ||||||
2,262,516 | ||||||||
Electric Utilities – 1.7% | ||||||||
Entergy Corp. | 5,134 | 391,519 | ||||||
Great Plains Energy, Inc. | 11,662 | 345,078 | ||||||
PPL Corp. | 10,608 | 404,271 | ||||||
1,140,868 | ||||||||
Electrical Equipment – 1.6% | ||||||||
Eaton Corp. plc | 6,936 | 524,639 | ||||||
Emerson Electric Co. | 9,792 | 590,262 | ||||||
1,114,901 | ||||||||
Electronic Equipment, Instruments & Components – 1.1% | ||||||||
Corning, Inc. | 15,946 | 460,042 | ||||||
TE Connectivity Ltd. | 3,604 | 278,842 | ||||||
738,884 |
See Accompanying Notes to the Financial Statements.
218 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Energy Equipment & Services – 0.6% | ||||||||
Helmerich & Payne, Inc.(a) | 4,216 | $ | 255,658 | |||||
Oceaneering International, Inc. | 6,120 | 161,507 | ||||||
417,165 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 6.6% | ||||||||
Apple Hospitality REIT, Inc. | 2,278 | 42,667 | �� | |||||
CoreCivic, Inc. | 12,580 | 433,381 | ||||||
EPR Properties | 1,020 | 74,164 | ||||||
GEO Group, Inc. (The) | 4,641 | 154,638 | ||||||
Hospitality Properties Trust | 9,214 | 293,282 | ||||||
Host Hotels & Resorts, Inc. | 16,422 | 294,775 | ||||||
Iron Mountain, Inc. | 2,720 | 94,547 | ||||||
Lamar Advertising Co., Class A | 5,270 | 379,809 | ||||||
LaSalle Hotel Properties | 10,676 | 304,907 | ||||||
Lexington Realty Trust | 6,766 | 68,810 | ||||||
Liberty Property Trust | 2,448 | 99,315 | ||||||
Medical Properties Trust, Inc. | 1,326 | 17,331 | ||||||
Omega Healthcare Investors, Inc.(a) | 1,768 | 58,344 | ||||||
Outfront Media, Inc. | 12,682 | 331,761 | ||||||
RLJ Lodging Trust | 11,594 | 249,155 | ||||||
Ryman Hospitality Properties, Inc.(a) | 5,746 | 366,480 | ||||||
Select Income REIT | 1,870 | 46,862 | ||||||
Senior Housing Properties Trust | 3,706 | 79,753 | ||||||
Sunstone Hotel Investors, Inc. | 23,222 | 345,776 | ||||||
Uniti Group, Inc.* | 12,818 | 351,982 | ||||||
WP Carey, Inc. | 6,052 | 378,855 | ||||||
4,466,594 | ||||||||
Health Care Equipment & Supplies – 0.3% | ||||||||
Abbott Laboratories | 4,284 | 186,954 | ||||||
Health Care Providers & Services – 0.8% | ||||||||
Owens & Minor, Inc.(a) | 11,458 | 397,020 | ||||||
UnitedHealth Group, Inc. | 816 | 142,702 | ||||||
539,722 | ||||||||
Hotels, Restaurants & Leisure – 1.0% | ||||||||
McDonald’s Corp. | 4,998 | 699,370 |
Shares | Value | |||||||
Household Durables – 0.8% | ||||||||
Garmin Ltd. | 1,870 | $ | 95,071 | |||||
Tupperware Brands Corp. | 4,692 | 336,932 | ||||||
Whirlpool Corp. | 510 | 94,697 | ||||||
526,700 | ||||||||
Household Products – 1.3% | ||||||||
Procter & Gamble Co. (The) | 10,370 | 905,612 | ||||||
Independent Power and Renewable Electricity Producers – 0.4% | ||||||||
AES Corp. | 25,228 | 285,329 | ||||||
Industrial Conglomerates – 5.2% | ||||||||
3M Co. | 5,746 | 1,125,239 | ||||||
General Electric Co. | 82,178 | 2,382,340 | ||||||
3,507,579 | ||||||||
Insurance – 3.7% | ||||||||
Aflac, Inc. | 5,712 | 427,715 | ||||||
Assured Guaranty Ltd. | 10,030 | 382,444 | ||||||
Lincoln National Corp. | 5,270 | 347,451 | ||||||
MetLife, Inc. | 2,856 | 147,969 | ||||||
Old Republic International Corp. | 3,400 | 70,312 | ||||||
Principal Financial Group, Inc. | 6,800 | 442,884 | ||||||
Prudential Financial, Inc. | 6,120 | 655,024 | ||||||
2,473,799 | ||||||||
Internet & Direct Marketing Retail – 0.5% | ||||||||
HSN, Inc. | 9,588 | 353,797 | ||||||
Internet Software & Services – 0.6% | ||||||||
j2 Global, Inc.(a) | 4,590 | 414,202 | ||||||
IT Services – 4.3% | ||||||||
Accenture plc, Class A | 8,840 | 1,072,292 | ||||||
International Business Machines Corp. | 4,590 | 735,731 | ||||||
Paychex, Inc. | 6,358 | 376,902 | ||||||
Science Applications International Corp. | 3,978 | 290,354 | ||||||
Visa, Inc., Class A | 1,258 | 114,755 | ||||||
Western Union Co. (The) | 15,164 | 301,157 | ||||||
2,891,191 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 219 |
Table of Contents
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Leisure Products – 0.0%(b) | ||||||||
Mattel, Inc. | 952 | $ | 21,344 | |||||
Machinery – 0.6% | ||||||||
Cummins, Inc. | 2,856 | 431,085 | ||||||
Media – 0.8% | ||||||||
Sinclair Broadcast Group, Inc., Class A | 2,278 | 89,867 | ||||||
TEGNA, Inc. | 11,424 | 291,084 | ||||||
Walt Disney Co. (The) | 1,292 | 149,355 | ||||||
530,306 | ||||||||
Metals & Mining – 0.6% | ||||||||
Nucor Corp. | 6,290 | 385,766 | ||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.9% | ||||||||
Chimera Investment Corp. | 19,312 | 393,192 | ||||||
MFA Financial, Inc. | 12,716 | 105,670 | ||||||
Two Harbors Investment Corp. | 9,384 | 93,746 | ||||||
592,608 | ||||||||
Multiline Retail – 1.8% | ||||||||
Kohl’s Corp. | 9,146 | 356,968 | ||||||
Macy’s, Inc. | 12,070 | 352,686 | ||||||
Target Corp. | 8,602 | 480,422 | ||||||
1,190,076 | ||||||||
Multi-Utilities – 0.2% | ||||||||
CenterPoint Energy, Inc. | 4,352 | 124,163 | ||||||
Oil, Gas & Consumable Fuels – 5.1% | ||||||||
Chevron Corp. | 7,820 | 834,394 | ||||||
Exxon Mobil Corp. | 9,078 | 741,219 | ||||||
HollyFrontier Corp.(a) | 3,298 | 92,806 | ||||||
Murphy Oil Corp. | 952 | 24,923 | ||||||
Occidental Petroleum Corp. | 9,894 | 608,877 | ||||||
ONEOK, Inc. | 6,664 | 350,593 | ||||||
Overseas Shipholding Group, Inc., Class A* (a) | 65,892 | 239,847 | ||||||
PBF Energy, Inc., Class A(a) | 2,414 | 53,880 | ||||||
Tesoro Corp. | 1,088 | 86,724 | ||||||
Valero Energy Corp. | 6,052 | 391,020 | ||||||
3,424,283 |
Shares | Value | |||||||
Paper & Forest Products – 0.1% | ||||||||
Domtar Corp. | 850 | $ | 33,703 | |||||
Personal Products – 0.4% | ||||||||
Nu Skin Enterprises, Inc., Class A(a) | 4,522 | 249,750 | ||||||
Pharmaceuticals – 7.4% | ||||||||
Johnson & Johnson | 5,610 | 692,667 | ||||||
Merck & Co., Inc. | 32,776 | 2,042,928 | ||||||
Pfizer, Inc. | 66,912 | 2,269,655 | ||||||
5,005,250 | ||||||||
Professional Services – 0.6% | ||||||||
ManpowerGroup, Inc. | 4,182 | 422,298 | ||||||
Semiconductors & Semiconductor Equipment – 4.3% | ||||||||
Applied Materials, Inc. | 14,688 | 596,480 | ||||||
KLA-Tencor Corp. | 4,658 | 457,509 | ||||||
Maxim Integrated Products, Inc. | 7,854 | 346,754 | ||||||
QUALCOMM, Inc. | 7,684 | 412,938 | ||||||
Texas Instruments, Inc. | 14,314 | 1,133,382 | ||||||
2,947,063 | ||||||||
Software – 1.6% | ||||||||
CA, Inc. | 10,268 | 337,098 | ||||||
Fair Isaac Corp. | 2,516 | 340,868 | ||||||
Symantec Corp. | 12,852 | 406,509 | ||||||
1,084,475 | ||||||||
Specialty Retail – 4.2% | ||||||||
American Eagle Outfitters, Inc. | 25,398 | 357,858 | ||||||
Best Buy Co., Inc. | 7,854 | 406,916 | ||||||
GameStop Corp., Class A | 12,376 | 280,811 | ||||||
Gap, Inc. (The)(a) | 11,798 | 309,108 | ||||||
Home Depot, Inc. (The) | 7,582 | 1,183,550 | ||||||
Staples, Inc. | 30,566 | 298,630 | ||||||
2,836,873 | ||||||||
Technology Hardware, Storage & Peripherals – 5.2% | ||||||||
Apple, Inc. | 13,464 | 1,934,104 | ||||||
HP, Inc. | 26,656 | 501,666 | ||||||
NetApp, Inc. | 9,112 | 363,113 | ||||||
Seagate Technology plc | 8,942 | 376,726 | ||||||
Xerox Corp. | 50,932 | 366,201 | ||||||
3,541,810 |
See Accompanying Notes to the Financial Statements.
220 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Tobacco – 4.7% | ||||||||
Altria Group, Inc. | 10,438 | $ | 749,239 | |||||
Philip Morris International, Inc. | 21,352 | 2,366,656 | ||||||
Vector Group Ltd.(a) | 3,332 | 72,371 | ||||||
3,188,266 | ||||||||
Total Common Stocks (Cost $58,443,155) | 66,658,698 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(c) – 3.2% | ||||||||
COMMERCIAL PAPER – 0.3% | ||||||||
ING (US) Funding LLC 1.11%, 6/9/2017 (Cost $199,759) | $ | 200,000 | 199,759 | |||||
MASTER DEMAND NOTE – 0.2% | ||||||||
Natixis Financial Products LLC 1.16%, 5/1/2017 | 100,000 | 100,000 | ||||||
REPURCHASE AGREEMENTS – 2.7% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $250,023, collateralized by various Common Stocks; total market value $275,000 | 250,000 | 250,000 | ||||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $1,339,772, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $1,366,474 | 1,339,680 | 1,339,680 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $300,033, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $314,746 | $ | 300,000 | $ | 300,000 | ||||
Total Repurchase Agreements (Cost $1,889,680) | 1,889,680 | |||||||
Total Securities Lending Reinvestments (Cost $2,189,439) | 2,189,439 | |||||||
Total Investments – 101.5% (Cost $60,632,594) | 68,848,137 | |||||||
Liabilities Less Other Assets – (1.5%) |
| (999,606 | ) | |||||
NET ASSETS – 100.0% | $ | 67,848,531 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $2,125,150, collateralized in the form of cash with a value of $2,189,156. |
(b) | Represents less than 0.05% of net assets. |
(c) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $2,189,439. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 9,188,820 | ||
Aggregate gross unrealized depreciation | (956,895 | ) | ||
Net unrealized appreciation | $ | 8,231,925 | ||
Federal income tax cost of investments | $ | 60,616,212 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 221 |
Table of Contents
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Futures Contracts
FlexShares® Quality Dividend Dynamic Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation | |||||||||||||
E-mini S&P 500® Index Futures Contracts | 10 | 06/16/2017 | $ | 1,190,250 | $ | 8,317 |
See Accompanying Notes to the Financial Statements.
222 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® International Quality Dividend Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 98.5% | ||||||||
Air Freight & Logistics – 0.7% | ||||||||
bpost SA | 210,210 | $ | 5,035,980 | |||||
Airlines – 0.2% | ||||||||
easyJet plc(a) | 118,690 | 1,793,525 | ||||||
Auto Components – 0.8% | ||||||||
Bridgestone Corp. | 143,000 | 5,962,716 | ||||||
Automobiles – 1.7% | ||||||||
Subaru Corp. | 153,000 | 5,781,250 | ||||||
Toyota Motor Corp. | 114,400 | 6,193,631 | ||||||
11,974,881 | ||||||||
Banks – 13.5% | ||||||||
Agricultural Bank of China Ltd., Class H | 1,430,000 | 660,067 | ||||||
Aozora Bank Ltd. | 1,430,000 | 5,208,397 | ||||||
Australia & New Zealand Banking Group Ltd. | 268,840 | 6,586,463 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 624,532 | 4,997,938 | ||||||
Bank of China Ltd., Class H | 7,436,000 | 3,604,441 | ||||||
BOC Hong Kong Holdings Ltd. | 1,144,000 | 4,706,881 | ||||||
Canadian Imperial Bank of Commerce | 72,644 | 5,857,530 | ||||||
Commonwealth Bank of Australia | 157,872 | 10,318,844 | ||||||
Credit Agricole SA | 145,288 | 2,159,585 | ||||||
Grupo Financiero Santander Mexico SAB de CV, Class B | 3,546,400 | 6,391,004 | ||||||
Intesa Sanpaolo SpA | 2,657,226 | 7,737,450 | ||||||
Intesa Sanpaolo SpA (Retirement Savings Plan) | 2,287,714 | 6,252,927 | ||||||
Natixis SA | 877,734 | 6,104,748 | ||||||
Nordea Bank AB | 449,592 | 5,534,346 | ||||||
Royal Bank of Canada(a) | 24,596 | 1,681,407 | ||||||
Societe Generale SA | 70,070 | 3,831,160 | ||||||
Swedbank AB, Class A | 226,226 | 5,362,610 | ||||||
Toronto-Dominion Bank (The) | 4,576 | 214,961 | ||||||
Westpac Banking Corp.(a) | 307,164 | 8,053,723 | ||||||
95,264,482 |
Shares | Value | |||||||
Beverages – 0.1% | ||||||||
Anheuser-Busch InBev SA/NV(a) | 5,434 | $ | 611,854 | |||||
Capital Markets – 4.4% | ||||||||
Banca Generali SpA | 18,304 | 526,009 | ||||||
Central China Securities Co. Ltd., Class H(a) | 2,574,000 | 1,366,834 | ||||||
CI Financial Corp.(a) | 208,208 | 4,065,790 | ||||||
Coronation Fund Managers Ltd.(a) | 984,126 | 4,661,156 | ||||||
IG Group Holdings plc | 798,512 | 5,614,762 | ||||||
IGM Financial, Inc. | 161,018 | 4,829,480 | ||||||
Macquarie Group Ltd. | 85,800 | 5,967,394 | ||||||
UBS Group AG (Registered) | 228,228 | 3,897,610 | ||||||
30,929,035 | ||||||||
Chemicals – 2.3% | ||||||||
BASF SE | 84,942 | 8,274,834 | ||||||
Kuraray Co. Ltd. | 85,800 | 1,383,946 | ||||||
Mitsui Chemicals, Inc. | 1,053,000 | 5,384,498 | ||||||
Synthos SA | 935,506 | 1,299,180 | ||||||
16,342,458 | ||||||||
Commercial Services & Supplies – 0.8% | ||||||||
Edenred | 234,806 | 6,010,040 | ||||||
Construction & Engineering – 0.2% | ||||||||
BOSKALIS WESTMINSTER | 46,904 | 1,724,585 | ||||||
Diversified Financial Services – 2.2% | ||||||||
AMP Ltd. | 59,488 | 238,456 | ||||||
Banca Mediolanum SpA | 347,204 | 2,656,067 | ||||||
BTG Pactual Group* | 858,000 | 4,972,902 | ||||||
Rural Electrification Corp. Ltd. | 2,381,522 | 7,498,481 | ||||||
15,365,906 | ||||||||
Diversified Telecommunication Services – 3.5% | ||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 2,909,764 | 4,899,513 | ||||||
O2 Czech Republic A/S* | 354,926 | 4,190,798 | ||||||
Spark New Zealand Ltd. | 2,027,454 | 5,143,249 | ||||||
Telenor ASA | 100,386 | 1,626,519 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 223 |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
Telia Co. AB(a) | 419,276 | $ | 1,709,340 | |||||
Telstra Corp. Ltd. | 332,618 | 1,049,718 | ||||||
Vivendi SA* (a) | 315,744 | 6,262,853 | ||||||
24,881,990 | ||||||||
Electric Utilities – 2.5% | ||||||||
CEZ A/S(a) | 83,798 | 1,462,750 | ||||||
EDP – Energias de Portugal SA | 541,398 | 1,786,353 | ||||||
Endesa SA | 248,248 | 5,848,582 | ||||||
Fortum OYJ(a) | 346,346 | 5,038,770 | ||||||
Korea Electric Power Corp. | 48,906 | 1,949,105 | ||||||
SSE plc | 107,250 | 1,930,078 | ||||||
18,015,638 | ||||||||
Electrical Equipment – 0.4% | ||||||||
Mitsubishi Electric Corp. | 200,200 | 2,790,982 | ||||||
Electronic Equipment, Instruments & Components – 1.1% | ||||||||
Omron Corp. | 122,800 | 5,139,159 | ||||||
WPG Holdings Ltd. | 1,144,000 | 1,450,333 | ||||||
Zhen Ding Technology Holding Ltd. | 486,936 | 1,139,428 | ||||||
7,728,920 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.7% | ||||||||
Fonciere Des Regions | 61,490 | 5,486,664 | ||||||
H&R REIT | 81,224 | 1,375,812 | ||||||
Hui Xian REIT | 3,146,000 | 1,409,392 | ||||||
ICADE(a) | 19,734 | 1,464,928 | ||||||
Japan Retail Fund Investment Corp. | 286 | 558,812 | ||||||
Link REIT | 286,000 | 2,057,422 | ||||||
RioCan REIT | 28,028 | 531,534 | ||||||
Smart REIT | 47,762 | 1,130,387 | ||||||
Unibail-Rodamco SE | 20,878 | 5,125,628 | ||||||
19,140,579 | ||||||||
Food & Staples Retailing – 0.7% | ||||||||
Casino Guichard Perrachon SA | 26,312 | 1,584,481 | ||||||
J Sainsbury plc | 144,716 | 515,621 | ||||||
Kesko OYJ, Class A | 28,028 | 1,310,271 | ||||||
Kesko OYJ, Class B(a) | 28,028 | 1,313,017 | ||||||
4,723,390 |
Shares | Value | |||||||
Food Products – 1.6% | ||||||||
Marine Harvest ASA* | 91,520 | $ | 1,525,600 | |||||
Nestle SA (Registered) | 67,496 | 5,197,216 | ||||||
Orkla ASA | 535,106 | 4,856,650 | ||||||
11,579,466 | ||||||||
Gas Utilities – 0.9% | ||||||||
Cia de Gas de Sao Paulo – COMGAS (Preference), Class A | 308,849 | 4,615,163 | ||||||
Gas Natural SDG SA | 82,654 | 1,868,526 | ||||||
6,483,689 | ||||||||
Health Care Equipment & Supplies – 0.9% | ||||||||
Hoya Corp. | 126,400 | 6,037,083 | ||||||
Hotels, Restaurants & Leisure – 1.6% | ||||||||
Crown Resorts Ltd.(a) | 577,148 | 5,395,251 | ||||||
Sands China Ltd. | 1,258,400 | 5,711,506 | ||||||
11,106,757 | ||||||||
Household Durables – 1.1% | ||||||||
Berkeley Group Holdings plc | 41,470 | 1,747,976 | ||||||
Casio Computer Co. Ltd. | 228,800 | 3,224,588 | ||||||
Panasonic Corp. | 171,600 | 2,048,208 | ||||||
Sekisui House Ltd. | 28,600 | 474,529 | ||||||
7,495,301 | ||||||||
Independent Power and Renewable Electricity Producers –1.1% | ||||||||
China Power International Development Ltd. | 3,432,000 | 1,279,683 | ||||||
Huadian Power International Corp. Ltd., Class H | 2,860,000 | 1,206,138 | ||||||
NHPC Ltd. | 2,961,244 | 1,461,519 | ||||||
Unipro PJSC | 90,871,638 | 4,017,966 | ||||||
7,965,306 | ||||||||
Insurance – 6.0% | ||||||||
Aegon NV | 308,880 | 1,573,804 | ||||||
Allianz SE (Registered) | 41,756 | 7,948,190 | ||||||
BB Seguridade Participacoes SA | 543,400 | 5,062,311 | ||||||
Direct Line Insurance Group plc | 615,472 | 2,780,564 | ||||||
Euler Hermes Group | 55,198 | 5,389,872 |
See Accompanying Notes to the Financial Statements.
224 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Gjensidige Forsikring ASA | 227,370 | $ | 3,500,858 | |||||
Legal & General Group plc | 655,226 | 2,086,186 | ||||||
MMI Holdings Ltd. | 705,562 | 1,228,852 | ||||||
Power Corp. of Canada | 57,486 | 1,329,834 | ||||||
Power Financial Corp. | 58,344 | 1,480,256 | ||||||
Powszechny Zaklad Ubezpieczen SA | 166,452 | 1,835,552 | ||||||
Sompo Holdings, Inc. | 57,200 | 2,158,278 | ||||||
Standard Life plc | 1,168,882 | 5,503,045 | ||||||
Tokio Marine Holdings, Inc. | 15,500 | 652,427 | ||||||
42,530,029 | ||||||||
Internet Software & Services – 0.4% | ||||||||
Tencent Holdings Ltd. | 85,800 | 2,685,128 | ||||||
Leisure Products – 0.2% | ||||||||
Sankyo Co. Ltd. | 39,300 | 1,369,700 | ||||||
Machinery – 3.1% | ||||||||
FANUC Corp. | 31,700 | 6,442,662 | ||||||
Hino Motors Ltd. | 429,000 | 5,376,451 | ||||||
IMI plc | 41,184 | 681,474 | ||||||
Kawasaki Heavy Industries Ltd. | 416,000 | 1,257,666 | ||||||
Komatsu Ltd. | 85,800 | 2,287,589 | ||||||
Metso OYJ(a) | 161,304 | 5,784,220 | ||||||
21,830,062 | ||||||||
Media – 2.3% | ||||||||
Eutelsat Communications SA | 282,568 | 6,686,374 | ||||||
Multiplus SA | 400,400 | 4,887,964 | ||||||
Pearson plc | 193,050 | 1,595,956 | ||||||
ProSiebenSat.1 Media SE | 32,890 | 1,396,449 | ||||||
RTL Group SA | 18,590 | 1,441,343 | ||||||
16,008,086 | ||||||||
Metals & Mining – 3.9% | ||||||||
Eregli Demir ve Celik Fabrikalari TAS | 3,178,318 | 5,822,258 | ||||||
Fortescue Metals Group Ltd. | 620,906 | 2,465,669 | ||||||
MMC Norilsk Nickel PJSC | 31,174 | 4,784,417 | ||||||
NMDC Ltd. | 2,483,052 | 4,921,330 | ||||||
Novolipetsk Steel PJSC | 652,366 | 1,233,349 | ||||||
Rio Tinto plc | 90,090 | 3,568,881 |
Shares | Value | |||||||
Metals & Mining – (continued) | ||||||||
Severstal PJSC | 330,616 | $ | 4,501,559 | |||||
27,297,463 | ||||||||
Multiline Retail – 0.3% | ||||||||
Marks & Spencer Group plc | 385,242 | 1,827,159 | ||||||
Multi-Utilities – 0.3% | ||||||||
Engie SA(a) | 170,456 | 2,403,754 | ||||||
Oil, Gas & Consumable Fuels – 8.4% | ||||||||
AltaGas Ltd. | 57,200 | 1,279,710 | ||||||
BP plc | 1,802,995 | 10,321,865 | ||||||
Coal India Ltd. | 1,059,058 | 4,554,460 | ||||||
Enagas SA | 161,590 | 4,249,517 | ||||||
Husky Energy, Inc.* | 416,988 | 4,806,356 | ||||||
Inter Pipeline Ltd. | 109,252 | 2,222,115 | ||||||
Royal Dutch Shell plc, Class A | 376,080 | 9,743,234 | ||||||
Royal Dutch Shell plc, Class B | 337,766 | 8,969,112 | ||||||
Snam SpA | 1,333,904 | 5,894,467 | ||||||
Surgutneftegas OJSC (Preference) | 8,525,374 | 4,563,119 | ||||||
TOTAL SA(a) | 17,376 | 892,532 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 64,064 | 1,613,430 | ||||||
59,109,917 | ||||||||
Paper & Forest Products – 0.3% | ||||||||
UPM-Kymmene OYJ | 73,788 | 1,946,915 | ||||||
Personal Products – 1.6% | ||||||||
Unilever NV, CVA | 220,792 | 11,575,572 | ||||||
Pharmaceuticals – 5.4% | ||||||||
AstraZeneca plc | 115,544 | 6,932,369 | ||||||
Bayer AG (Registered) | 1,144 | 141,518 | ||||||
GlaxoSmithKline plc | 454,168 | 9,107,488 | ||||||
Novartis AG (Registered) | 56,342 | 4,332,694 | ||||||
Orion OYJ, Class B | 82,368 | 4,722,422 | ||||||
Roche Holding AG | 29,744 | 7,777,752 | ||||||
Sanofi(a) | 27,742 | 2,616,458 | ||||||
Takeda Pharmaceutical Co. Ltd. | 47,100 | 2,257,183 | ||||||
37,887,884 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 225 |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Professional Services – 0.5% | ||||||||
Adecco Group AG (Registered)* | 26,026 | $ | 1,932,113 | |||||
Capita plc | 232,804 | 1,674,617 | ||||||
3,606,730 | ||||||||
Real Estate Management & Development – 2.7% | ||||||||
China Evergrande Group(a) | 2,002,000 | 2,139,057 | ||||||
Daito Trust Construction Co. Ltd. | 32,700 | 4,810,981 | ||||||
KWG Property Holding Ltd. | 2,002,000 | 1,513,556 | ||||||
Land & Houses PCL, NVDR | 17,960,800 | 5,348,258 | ||||||
SP Setia Bhd. Group | 6,034,600 | 5,087,914 | ||||||
18,899,766 | ||||||||
Road & Rail – 0.4% | ||||||||
Aurizon Holdings Ltd. | 414,700 | 1,597,187 | ||||||
BTS Group Holdings PCL, NVDR | 5,376,800 | 1,321,272 | ||||||
2,918,459 | ||||||||
Semiconductors & Semiconductor Equipment – 1.9% | ||||||||
Novatek Microelectronics Corp. | 1,336,099 | 5,136,969 | ||||||
Siliconware Precision Industries Co. Ltd. | 3,146,000 | 5,098,916 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 314,222 | 2,025,660 | ||||||
Tokyo Electron Ltd. | 10,200 | 1,186,355 | ||||||
13,447,900 | ||||||||
Software – 0.0%(b) | ||||||||
Oracle Corp. Japan | 6,500 | 374,361 | ||||||
Specialty Retail – 0.2% | ||||||||
USS Co. Ltd. | 85,800 | 1,516,336 | ||||||
Technology Hardware, Storage & Peripherals – 2.9% | ||||||||
Canon, Inc. | 95,400 | 3,163,169 | ||||||
Compal Electronics, Inc. | 8,294,000 | 5,552,975 | ||||||
Inventec Corp. | 6,578,000 | 4,894,637 | ||||||
Pegatron Corp. | 498,064 | 1,467,564 | ||||||
Quanta Computer, Inc. | 858,000 | 1,777,369 | ||||||
Samsung Electronics Co. Ltd. | 1,716 | 3,364,440 | ||||||
20,220,154 |
Shares | Value | |||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||
HUGO BOSS AG(a) | 76,076 | $ | 5,784,924 | |||||
Li & Fung Ltd.(a) | 11,440,000 | 4,795,135 | ||||||
10,580,059 | ||||||||
Tobacco – 4.1% | ||||||||
British American Tobacco plc | 343,200 | 23,155,382 | ||||||
Japan Tobacco, Inc. | 171,600 | 5,705,119 | ||||||
28,860,501 | ||||||||
Trading Companies & Distributors – 1.1% | ||||||||
ITOCHU Corp. | 143,000 | 2,021,782 | ||||||
Sumitomo Corp. | 429,000 | 5,728,595 | ||||||
7,750,377 | ||||||||
Transportation Infrastructure – 2.4% | ||||||||
Abertis Infraestructuras SA | 372,112 | 6,544,163 | ||||||
Hopewell Highway Infrastructure Ltd.(a) | 1,001,000 | 579,167 | ||||||
Hutchison Port Holdings Trust(a) | 3,632,200 | 1,471,041 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 572,000 | 844,297 | ||||||
Shenzhen Expressway Co. Ltd., Class H | 1,144,000 | 1,042,868 | ||||||
Sydney Airport | 285,142 | 1,469,247 | ||||||
TAV Havalimanlari Holding A/S | 1,188,330 | 4,948,937 | ||||||
16,899,720 | ||||||||
Wireless Telecommunication Services – 3.6% | ||||||||
Freenet AG | 175,890 | 5,518,135 | ||||||
Intouch Holdings PCL, NVDR | 3,231,800 | 4,998,592 | ||||||
MegaFon PJSC | 102,388 | 1,075,742 | ||||||
Mobile TeleSystems PJSC | 1,083,082 | 5,204,169 | ||||||
MTN Group Ltd.(a) | 207,636 | 1,962,526 | ||||||
StarHub Ltd.(a) | 2,602,600 | 5,195,145 | ||||||
Tele2 AB, Class B(a) | 164,164 | 1,653,728 | ||||||
25,608,037 | ||||||||
Total Common Stocks (Cost $647,778,981) | 696,118,632 |
See Accompanying Notes to the Financial Statements.
226 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
No. of Rights | Value | |||||||
RIGHT – 0.0%(b) | ||||||||
Gas Utilities – 0.0%(b) | ||||||||
Cia de Gas de Sao Paulo – COMGAS, expiring 5/26/2017, price 46.41 BRL | 6,610 | $ | 2,748 | |||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(d) – 1.0% | ||||||||
COMMERCIAL PAPER – 0.0%(b) | ||||||||
ING (US) Funding LLC 1.11%, 6/9/2017 | $ | 100,000 | 99,880 | |||||
REPURCHASE AGREEMENTS – 1.0% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $700,063, collateralized by various Common Stocks; total market value $770,000 | 700,000 | 700,000 | ||||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $5,364,722, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $5,471,638 | 5,364,351 | 5,364,351 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $700,076, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $734,408 | $ | 700,000 | $ | 700,000 | ||||
Total Repurchase Agreements (Cost $6,764,351) | 6,764,351 | |||||||
Total Securities Lending Reinvestments (Cost $6,864,231) | 6,864,231 | |||||||
Total Investments – 99.5% (Cost $654,643,212) | 702,985,611 | |||||||
Other Assets Less Liabilities – 0.5% |
| 3,565,218 | ||||||
NET ASSETS – 100.0% | $ | 706,550,829 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $36,953,268, collateralized in the form of cash with a value of $6,864,089 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $8,645,097 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.13%, and maturity dates ranging from 5/18/2017 – 2/15/2047 and $25,239,368 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $40,748,554. |
(b) | Represents less than 0.05% of net assets. |
(c) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $2,748, which represents approximately 0.00% of net assets of the Fund. |
(d) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $6,864,231. |
Percentages shown are based on Net Assets.
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 227 |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Abbreviations:
BRL – Brazilian Real
CVA – Dutch Certification
NVDR – Non-Voting Depositary Receipt
OJSC – Open Joint Stock Company
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 62,821,398 | ||
Aggregate gross unrealized depreciation | (16,182,102 | ) | ||
Net unrealized appreciation | $ | 46,639,296 | ||
Federal income tax cost of investments | $ | 656,346,315 |
Futures Contracts
FlexShares® International Quality Dividend Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation (Depreciation) | |||||||||||||
EURO STOXX 50® Index Futures Contracts | 77 | 06/16/2017 | $ | 2,941,428 | $ | 122,332 | ||||||||||
FTSE 100® Index Futures Contracts | 24 | 06/16/2017 | 2,224,733 | (29,861 | ) | |||||||||||
Hang Seng Index Futures Contract | 1 | 05/29/2017 | 157,897 | 3,177 | ||||||||||||
Mini MSCI Emerging Markets Index Futures Contracts | 42 | 06/16/2017 | 2,055,900 | 65,947 | ||||||||||||
S&P Toronto Stock Exchange 60® Index Futures Contracts | 4 | 06/15/2017 | 536,415 | 1,920 | ||||||||||||
SPI 200® Index Futures Contracts | 9 | 06/15/2017 | 994,958 | 20,817 | ||||||||||||
Tokyo Price Index Futures Contracts | 11 | 06/08/2017 | 1,509,823 | (867 | ) | |||||||||||
$ | 183,465 |
Forward Foreign Currency Contracts
FlexShares® International Quality Dividend Index Fund had the following outstanding contracts as of April 30, 2017:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
AUD | 253,578 | JPMorgan Chase Bank | USD | 192,156 | 06/21/2017 | $ | (2,689 | ) | ||||||||||||||
AUD | 168,931 | Bank of New York | USD | 130,000 | 06/21/2017 | (3,779 | ) | |||||||||||||||
AUD | 65,273 | Citibank NA | USD | 50,000 | 06/21/2017 | (1,230 | ) | |||||||||||||||
CAD | 173,127 | Morgan Stanley | USD | 130,000 | 06/21/2017 | (3,282 | ) | |||||||||||||||
CAD | 66,632 | Bank of Montreal | USD | 50,000 | 06/21/2017 | (1,230 | ) | |||||||||||||||
CHF | 24,787 | Goldman Sachs & Co. | USD | 25,000 | 06/21/2017 | (20 | ) | |||||||||||||||
EUR | 442,765 | Citibank NA | USD | 480,000 | 06/21/2017 | 3,404 | ||||||||||||||||
EUR | 919,866 | Societe Generale | USD | 985,287 | 06/21/2017 | 19,008 | ||||||||||||||||
EUR | 185,119 | Bank of New York | USD | 200,000 | 06/21/2017 | 2,110 | ||||||||||||||||
GBP | 472,052 | Goldman Sachs & Co. | USD | 590,000 | 06/21/2017 | 21,620 | ||||||||||||||||
GBP | 312,930 | Citibank NA | USD | 383,348 | 06/21/2017 | 22,104 | ||||||||||||||||
HKD | 387,758 | Toronto-Dominion Bank (The) | USD | 50,000 | 06/21/2017 | (90 | ) | |||||||||||||||
HKD | 418,604 | Citibank NA | USD | 53,977 | 06/21/2017 | (97 | ) | |||||||||||||||
JPY | 55,428,700 | Citibank NA | USD | 500,000 | 06/21/2017 | (1,730 | ) | |||||||||||||||
JPY | 54,542,540 | Morgan Stanley | USD | 477,517 | 06/21/2017 | 12,787 | ||||||||||||||||
RUB | 17,519,523 | JPMorgan Chase Bank | USD | 300,000 | 06/21/2017 | 3,828 | ||||||||||||||||
SEK | 337,877 | Bank of New York | USD | 37,870 | 06/21/2017 | 391 | ||||||||||||||||
TWD | 2,266,680 | Goldman Sachs & Co. | USD | 73,193 | 06/21/2017 | 2,088 |
See Accompanying Notes to the Financial Statements.
228 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Forward Foreign Currency Contracts (cont.)
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
USD | 366,716 | Citibank NA | AUD | 487,782 | 06/21/2017 | $ | 2,258 | |||||||||||||||
USD | 10,692 | Goldman Sachs & Co. | CAD | 14,375 | 06/21/2017 | 171 | ||||||||||||||||
USD | 17,156 | Morgan Stanley | CHF | 17,194 | 06/21/2017 | (173 | ) | |||||||||||||||
USD | 590,000 | Bank of New York | EUR | 551,459 | 06/21/2017 | (12,073 | ) | |||||||||||||||
USD | 290,000 | JPMorgan Chase Bank | EUR | 268,608 | 06/21/2017 | (3,262 | ) | |||||||||||||||
USD | 790,000 | Goldman Sachs & Co. | GBP | 635,886 | 06/21/2017 | (33,895 | ) | |||||||||||||||
USD | 217,770 | Morgan Stanley | INR | 14,707,751 | 06/21/2017 | (9,204 | ) | |||||||||||||||
USD | 200,000 | JPMorgan Chase Bank | JPY | 22,441,212 | 06/21/2017 | (1,733 | ) | |||||||||||||||
USD | 650,000 | Bank of Montreal | JPY | 71,929,780 | 06/21/2017 | 3,396 | ||||||||||||||||
USD | 202,986 | Goldman Sachs & Co. | RUB | 12,332,772 | 06/21/2017 | (10,891 | ) | |||||||||||||||
$ | 7,787 |
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
INR – Indian Rupee
JPY – Japanese Yen
RUB – Russian Ruble
SEK – Swedish Krona
TWD – Taiwan Dollar
USD – US Dollar
FlexShares® International Quality Dividend Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 6.1 | % | ||
Belgium | 1.0 | |||
Brazil | 2.8 | |||
Canada | 4.4 | |||
China | 2.6 | |||
Czech Republic | 0.8 | |||
Finland | 2.8 | |||
France | 7.9 | |||
Germany | 4.1 | |||
Hong Kong | 2.4 | |||
India | 2.6 | |||
Israel | 0.7 | |||
Italy | 3.3 | |||
Japan | 13.7 | |||
Malaysia | 0.7 | |||
Mexico | 0.9 | |||
Netherlands | 2.1 | |||
New Zealand | 0.7 | |||
Norway | 1.6 | |||
Poland | 0.4 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 229 |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Portugal | 0.3 | % | ||
Russia | 3.6 | |||
Singapore | 0.9 | |||
South Africa | 1.1 | |||
South Korea | 0.8 | |||
Spain | 3.3 | |||
Sweden | 2.0 | |||
Switzerland | 3.3 | |||
Taiwan | 4.0 | |||
Thailand | 1.7 | |||
Turkey | 1.8 | |||
United Kingdom | 14.1 | |||
Other1 | 1.5 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
230 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® International Quality Dividend Defensive Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 97.9% | ||||||||
Air Freight & Logistics – 1.0% | ||||||||
bpost SA | 24,920 | $ | 597,006 | |||||
Deutsche Post AG (Registered) | 6,020 | 216,331 | ||||||
813,337 | ||||||||
Airlines – 1.0% | ||||||||
easyJet plc | 14,770 | 223,190 | ||||||
Japan Airlines Co. Ltd. | 18,800 | 593,666 | ||||||
816,856 | ||||||||
Auto Components – 0.3% | ||||||||
Bridgestone Corp. | 3,500 | 145,940 | ||||||
Nokian Renkaat OYJ(a) | 2,940 | 126,460 | ||||||
272,400 | ||||||||
Automobiles – 2.1% | ||||||||
Subaru Corp. | 17,500 | 661,254 | ||||||
Toyota Motor Corp. | 19,500 | 1,055,733 | ||||||
1,716,987 | ||||||||
Banks – 14.7% | ||||||||
Agricultural Bank of China Ltd., Class H | 490,000 | 226,177 | ||||||
Aozora Bank Ltd. | 175,000 | 637,391 | ||||||
Australia & New Zealand Banking Group Ltd. | 31,736 | 777,518 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 35,112 | 280,990 | ||||||
Bank Pekao SA | 5,355 | 193,921 | ||||||
Banque Cantonale Vaudoise (Registered)* (a) | 245 | 177,452 | ||||||
Canadian Imperial Bank of Commerce | 8,715 | 702,720 | ||||||
China Everbright Bank Co. Ltd., Class H(a) | 140,000 | 65,702 | ||||||
Commonwealth Bank of Australia | 19,040 | 1,244,494 | ||||||
Grupo Financiero Santander Mexico SAB de CV, Class B | 420,000 | 756,886 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 175,000 | 114,303 | ||||||
Intesa Sanpaolo SpA | 328,055 | 955,248 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Intesa Sanpaolo SpA (Retirement Savings Plan) | 253,120 | $ | 691,844 | |||||
Mizuho Financial Group, Inc. | 259,000 | 473,064 | ||||||
National Bank of Canada | 5,215 | 202,337 | ||||||
Natixis SA | 104,055 | 723,715 | ||||||
Nordea Bank AB | 65,730 | 809,117 | ||||||
Royal Bank of Canada(a) | 16,240 | 1,110,183 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 14,000 | 517,951 | ||||||
Swedbank AB, Class A | 26,775 | 634,692 | ||||||
Toronto-Dominion Bank (The) | 385 | 18,086 | ||||||
Westpac Banking Corp.(a) | 36,575 | 958,983 | ||||||
12,272,774 | ||||||||
Beverages – 0.1% | ||||||||
Anheuser-Busch InBev SA/NV | 665 | 74,877 | ||||||
Capital Markets – 2.7% | ||||||||
Banca Generali SpA | 6,685 | 192,110 | ||||||
Central China Securities Co. Ltd., Class H(a) | 280,000 | 148,684 | ||||||
CI Financial Corp.(a) | 10,325 | 201,622 | ||||||
Coronation Fund Managers Ltd.(a) | 111,545 | 528,315 | ||||||
Deutsche Boerse AG | 2,205 | 215,742 | ||||||
IG Group Holdings plc | 94,850 | 666,941 | ||||||
IGM Financial, Inc. | 4,970 | 149,067 | ||||||
Orient Securities Co. Ltd., Class H* (b) | 182,000 | 177,377 | ||||||
2,279,858 | ||||||||
Chemicals – 0.8% | ||||||||
BASF SE | 420 | 40,915 | ||||||
Covestro AG(b) | 2,660 | 207,281 | ||||||
Evonik Industries AG | 5,215 | 174,086 | ||||||
Synthos SA | 108,220 | 150,290 | ||||||
Yara International ASA | 1,995 | 74,337 | ||||||
646,909 | ||||||||
Commercial Services & Supplies – 0.5% | ||||||||
Edenred | 17,745 | 454,197 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 231 |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – 0.2% | ||||||||
Vinci SA(a) | 1,785 | $ | 151,809 | |||||
Construction Materials – 0.2% | ||||||||
Fletcher Building Ltd. | 22,435 | 131,693 | ||||||
Diversified Financial Services – 1.8% | ||||||||
BTG Pactual Group* | 101,500 | 588,286 | ||||||
Rural Electrification Corp. Ltd. | 286,440 | 901,888 | ||||||
1,490,174 | ||||||||
Diversified Telecommunication Services – 4.6% | ||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 344,435 | 579,966 | ||||||
BT Group plc | 19,845 | 78,243 | ||||||
HKT Trust & HKT Ltd. | 70,000 | 89,553 | ||||||
Inmarsat plc | 21,595 | 228,397 | ||||||
Maroc Telecom | 12,005 | 167,659 | ||||||
O2 Czech Republic A/S* | 56,455 | 666,594 | ||||||
Proximus SADP(a) | 5,215 | 159,491 | ||||||
Spark New Zealand Ltd. | 241,185 | 611,839 | ||||||
Telenor ASA | 12,390 | 200,751 | ||||||
Telia Co. AB | 50,680 | 206,616 | ||||||
Telstra Corp. Ltd. | 42,630 | 134,537 | ||||||
Vivendi SA* (a) | 37,485 | 743,523 | ||||||
3,867,169 | ||||||||
Electric Utilities – 3.5% | ||||||||
CEZ A/S(a) | 9,555 | 166,789 | ||||||
EDP – Energias de Portugal SA | 61,390 | 202,558 | ||||||
Endesa SA | 29,330 | 690,998 | ||||||
Federal Grid Co. Unified Energy System PJSC | 137,631,270 | 474,281 | ||||||
Fortum OYJ(a) | 41,055 | 597,283 | ||||||
HK Electric Investments & HK Electric Investments Ltd.(a) (b) | 175,000 | 154,805 | ||||||
Korea Electric Power Corp. | 16,065 | 640,256 | ||||||
2,926,970 | ||||||||
Electronic Equipment, Instruments & Components – 0.1% | ||||||||
Murata Manufacturing Co. Ltd. | 900 | 120,665 | ||||||
Equity Real Estate Investment Trusts (REITs) – 1.6% | ||||||||
Gecina SA | 1,015 | 144,350 |
Shares | Value | |||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
GPT Group (The) | 47,215 | $ | 185,376 | |||||
H&R REIT | 9,555 | 161,848 | ||||||
Hui Xian REIT | 350,000 | 156,798 | ||||||
Japan Retail Fund Investment Corp. | 35 | 68,386 | ||||||
Link REIT | 17,500 | 125,891 | ||||||
RioCan REIT | 8,085 | 153,327 | ||||||
Smart REIT | 5,950 | 140,819 | ||||||
Stockland | 46,375 | 168,206 | ||||||
1,305,001 | ||||||||
Food & Staples Retailing – 0.7% | ||||||||
Casino Guichard Perrachon SA | 1,540 | 92,737 | ||||||
Kesko OYJ, Class A | 3,220 | 150,531 | ||||||
Lawson, Inc. | 2,500 | 165,964 | ||||||
METRO AG (Preference) | 5,670 | 167,633 | ||||||
576,865 | ||||||||
Food Products – 3.0% | ||||||||
Marine Harvest ASA* | 10,815 | 180,281 | ||||||
Nestle SA (Registered) | 19,810 | 1,525,377 | ||||||
Orkla ASA | 66,465 | 603,240 | ||||||
Tate & Lyle plc | 19,495 | 190,802 | ||||||
2,499,700 | ||||||||
Gas Utilities – 0.6% | ||||||||
Cia de Gas de Sao Paulo – COMGAS (Preference), Class A | 35,000 | 523,009 | ||||||
Hotels, Restaurants & Leisure – 1.6% | ||||||||
Crown Resorts Ltd.(a) | 69,510 | 649,788 | ||||||
Sands China Ltd. | 154,000 | 698,961 | ||||||
1,348,749 | ||||||||
Household Durables – 0.3% | ||||||||
Berkeley Group Holdings plc | 4,935 | 208,012 | ||||||
Independent Power and Renewable Electricity Producers – 0.6% | ||||||||
China Power International Development Ltd. | 420,000 | 156,605 | ||||||
Huadian Power International Corp. Ltd., Class H | 350,000 | 147,604 |
See Accompanying Notes to the Financial Statements.
232 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
NHPC Ltd. | 343,910 | $ | 169,736 | |||||
473,945 | ||||||||
Industrial Conglomerates – 0.7% | ||||||||
Bidvest Group Ltd. (The)(a) | 38,360 | 457,182 | ||||||
HAP Seng Consolidated Bhd. | 80,500 | 164,486 | ||||||
621,668 | ||||||||
Insurance – 5.9% | ||||||||
Admiral Group plc | 22,295 | 580,056 | ||||||
Allianz SE (Registered) | 105 | 19,987 | ||||||
Assicurazioni Generali SpA | 15,715 | 248,650 | ||||||
Direct Line Insurance Group plc | 89,810 | 405,741 | ||||||
Euler Hermes Group | 6,545 | 639,094 | ||||||
Gjensidige Forsikring ASA | 34,615 | 532,974 | ||||||
Jardine Lloyd Thompson Group plc | 11,130 | 157,962 | ||||||
Legal & General Group plc | 78,085 | 248,616 | ||||||
Medibank Pvt Ltd. | 65,100 | 141,673 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) | 1,785 | 342,007 | ||||||
NN Group NV | 2,240 | 74,251 | ||||||
Powszechny Zaklad Ubezpieczen SA | 20,650 | 227,718 | ||||||
Sampo OYJ, Class A(a) | 13,930 | 667,288 | ||||||
SCOR SE* | 4,375 | 173,034 | ||||||
Sompo Holdings, Inc. | 1,100 | 41,505 | ||||||
Tryg A/S | 23,240 | 445,758 | ||||||
4,946,314 | ||||||||
Internet Software & Services – 0.9% | ||||||||
Kakaku.com, Inc.(a) | 31,500 | 454,118 | ||||||
Tencent Holdings Ltd. | 10,500 | 328,599 | ||||||
782,717 | ||||||||
IT Services – 0.7% | ||||||||
Otsuka Corp. | 11,500 | 615,906 | ||||||
Leisure Products – 0.2% | ||||||||
Sankyo Co. Ltd. | 5,000 | 174,262 |
Shares | Value | |||||||
Machinery – 1.7% | ||||||||
FANUC Corp. | 3,500 | $ | 711,335 | |||||
Kone OYJ, Class B(a) | 8,470 | 387,936 | ||||||
MAN SE (Preference) | 1,540 | 159,649 | ||||||
Metso OYJ | 630 | 22,591 | ||||||
SKF AB, Class A | 4,235 | 93,120 | ||||||
1,374,631 | ||||||||
Media – 2.6% | ||||||||
Eutelsat Communications SA | 33,530 | 793,416 | ||||||
Multiplus SA | 49,000 | 598,177 | ||||||
Pearson plc | 23,940 | 197,914 | ||||||
ProSiebenSat.1 Media SE | 4,830 | 205,073 | ||||||
RTL Group SA | 2,205 | 170,961 | ||||||
Shaw Communications, Inc., Class B | 9,762 | 206,621 | ||||||
2,172,162 | ||||||||
Metals & Mining – 6.0% | ||||||||
Agnico Eagle Mines Ltd. | 4,384 | 209,212 | ||||||
Barrick Gold Corp. | 12,710 | 212,128 | ||||||
Eregli Demir ve Celik Fabrikalari TAS | 281,015 | 514,782 | ||||||
Fortescue Metals Group Ltd. | 36,610 | 145,381 | ||||||
Franco-Nevada Corp. | 2,820 | 191,479 | ||||||
MMC Norilsk Nickel PJSC | 2,660 | 408,242 | ||||||
NMDC Ltd. | 292,915 | 580,548 | ||||||
Novolipetsk Steel PJSC | 290,010 | 548,287 | ||||||
Polymetal International plc | 39,935 | 524,409 | ||||||
Rio Tinto plc | 13,545 | 536,580 | ||||||
Severstal PJSC | 7,337 | 99,898 | ||||||
Severstal PJSC, GDR | 32,108 | 439,238 | ||||||
Sibanye Gold Ltd.(a) | 267,680 | 541,010 | ||||||
4,951,194 | ||||||||
Multiline Retail – 0.3% | ||||||||
Marks & Spencer Group plc | 45,920 | 217,793 | ||||||
Next plc | 175 | 9,747 | ||||||
227,540 | ||||||||
Multi-Utilities – 0.3% | ||||||||
Engie SA | 20,125 | 283,801 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 233 |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – 8.1% | ||||||||
BP plc | 236,541 | $ | 1,354,160 | |||||
Coal India Ltd. | 127,680 | 549,085 | ||||||
Enagas SA | 5,005 | 131,622 | ||||||
Husky Energy, Inc.* | 50,155 | 578,105 | ||||||
Royal Dutch Shell plc, Class A | 51,730 | 1,340,187 | ||||||
Royal Dutch Shell plc, Class B | 33,495 | 889,434 | ||||||
Showa Shell Sekiyu KK | 10,500 | 101,449 | ||||||
Snam SpA | 157,185 | 694,594 | ||||||
Statoil ASA | 7,420 | 122,736 | ||||||
Surgutneftegas OJSC (Preference) | 394,447 | 211,124 | ||||||
Surgutneftegas OJSC (Preference), ADR | 64,016 | 344,406 | ||||||
TOTAL SA(a) | 3,343 | 171,716 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 7,735 | 194,803 | ||||||
Vermilion Energy, Inc.(a) | 1,855 | 65,202 | ||||||
6,748,623 | ||||||||
Personal Products – 0.1% | ||||||||
Unilever NV, CVA | 1,085 | 56,884 | ||||||
Pharmaceuticals – 6.6% | ||||||||
Astellas Pharma, Inc. | 45,500 | 599,211 | ||||||
Bayer AG (Registered) | 490 | 60,615 | ||||||
Eisai Co. Ltd. | 1,700 | 89,247 | ||||||
GlaxoSmithKline plc | 53,270 | 1,068,230 | ||||||
Mitsubishi Tanabe Pharma Corp. | 3,500 | 71,024 | ||||||
Novartis AG (Registered) | 6,860 | 527,533 | ||||||
Orion OYJ, Class A | 5,565 | 317,241 | ||||||
Orion OYJ, Class B | 15,470 | 886,945 | ||||||
Roche Holding AG | 3,360 | 878,606 | ||||||
Sanofi(a) | 1,470 | 138,641 | ||||||
Shionogi & Co. Ltd. | 11,300 | 581,169 | ||||||
Teva Pharmaceutical Industries Ltd. | 9,520 | 301,137 | ||||||
5,519,599 | ||||||||
Professional Services – 0.2% | ||||||||
Capita plc | 27,650 | 198,893 | ||||||
Real Estate Management & Development – 2.8% | ||||||||
Azrieli Group Ltd. | 3,675 | 195,844 | ||||||
China Evergrande Group(a) | 245,000 | 261,773 | ||||||
Daito Trust Construction Co. Ltd. | 3,900 | 573,787 |
Shares | Value | |||||||
Real Estate Management & Development – (continued) | ||||||||
Land & Houses PCL, NVDR | 2,163,000 | $ | 644,085 | |||||
SP Setia Bhd. Group | 784,000 | 661,009 | ||||||
2,336,498 | ||||||||
Road & Rail – 0.4% | ||||||||
Aurizon Holdings Ltd. | 50,120 | 193,034 | ||||||
BTS Group Holdings PCL, NVDR | 626,500 | 153,953 | ||||||
346,987 | ||||||||
Semiconductors & Semiconductor Equipment – 2.3% | ||||||||
Nanya Technology Corp. | 105,000 | 167,570 | ||||||
Novatek Microelectronics Corp. | 162,000 | 622,850 | ||||||
Siliconware Precision Industries Co. Ltd. | 385,000 | 623,993 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 43,000 | 277,203 | ||||||
Tokyo Electron Ltd. | 1,600 | 186,095 | ||||||
1,877,711 | ||||||||
Specialty Retail – 0.9% | ||||||||
Fast Retailing Co. Ltd. | 600 | 195,712 | ||||||
Hennes & Mauritz AB, Class B | 21,875 | 542,008 | ||||||
737,720 | ||||||||
Technology Hardware, Storage & Peripherals – 2.5% | ||||||||
Asustek Computer, Inc. | 20,000 | 196,546 | ||||||
Canon, Inc. | 11,700 | 387,936 | ||||||
Compal Electronics, Inc. | 280,000 | 187,465 | ||||||
Inventec Corp. | 630,000 | 468,778 | ||||||
Pegatron Corp. | 70,000 | 206,257 | ||||||
Quanta Computer, Inc. | 91,000 | 188,509 | ||||||
Samsung Electronics Co. Ltd. | 210 | 411,732 | ||||||
2,047,223 | ||||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||
HUGO BOSS AG(a) | 8,925 | 678,669 | ||||||
Li & Fung Ltd.(a) | 1,330,000 | 557,477 | ||||||
1,236,146 | ||||||||
Thrifts & Mortgage Finance – 0.3% | ||||||||
Indiabulls Housing Finance Ltd. | 14,770 | 233,489 | ||||||
Tobacco – 4.1% | ||||||||
British American Tobacco plc | 32,830 | 2,215,009 |
See Accompanying Notes to the Financial Statements.
234 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Tobacco – (continued) | ||||||||
Imperial Brands plc | 7,315 | $ | 357,920 | |||||
Japan Tobacco, Inc. | 24,500 | 814,542 | ||||||
3,387,471 | ||||||||
Trading Companies & Distributors – 1.1% | ||||||||
ITOCHU Corp. | 17,500 | 247,421 | ||||||
Sumitomo Corp. | 49,000 | 654,315 | ||||||
901,736 | ||||||||
Transportation Infrastructure – 3.1% | ||||||||
Abertis Infraestructuras SA | 36,693 | 645,303 | ||||||
Atlantia SpA | 8,505 | 215,608 | ||||||
Auckland International Airport Ltd. | 38,465 | 182,216 | ||||||
Hutchison Port Holdings Trust(a) | 451,500 | 182,858 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 35,000 | 51,662 | ||||||
Sydney Airport | 132,545 | 682,963 | ||||||
TAV Havalimanlari Holding A/S | 141,855 | 590,771 | ||||||
2,551,381 | ||||||||
Wireless Telecommunication Services – 2.6% | ||||||||
Freenet AG | 20,685 | 648,943 | ||||||
Mobile TeleSystems PJSC | 101,220 | 486,359 | ||||||
MTN Group Ltd.(a) | 25,550 | 241,493 | ||||||
StarHub Ltd.(a) | 308,000 | 614,810 | ||||||
Tele2 AB, Class B | 20,580 | 207,315 | ||||||
2,198,920 | ||||||||
Total Common Stocks (Cost $77,370,105) | 81,501,432 | |||||||
No. of Rights | ||||||||
RIGHT – 0.0%(c) | ||||||||
Gas Utilities – 0.0%(c) | ||||||||
Cia de Gas de Sao Paulo – COMGAS, expiring 5/26/2017, price 46.41 BRL (Cost $–)* (d) | 706 | 294 |
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(e) – 3.0% | ||||||||
REPURCHASE AGREEMENTS – 3.0% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $200,018, collateralized by various Common Stocks; total market value $220,000 | $ | 200,000 | $ | 200,000 | ||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $2,105,000, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $2,146,951 | 2,104,854 | 2,104,854 | ||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $200,021, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $209,831 | 200,000 | 200,000 | ||||||
2,504,854 | ||||||||
Total Securities Lending Reinvestments (Cost $2,504,854) | 2,504,854 | |||||||
Total Investments – 100.9% (Cost $79,874,959) | 84,006,580 | |||||||
Liabilities Less Other Assets – (0.9%) |
| (752,885 | ) | |||||
NET ASSETS – 100.0% | $ | 83,253,695 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 235 |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $8,031,700, collateralized in the form of cash with a value of $2,504,854 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $1,616,620 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from 5/18/2017 – 2/15/2047 and $4,461,002 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $8,582,476. |
(b) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(c) | Represents less than 0.05% of net assets. |
(d) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $294, which represents approximately 0.00% of net assets of the Fund. |
(e) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $2,504,854. |
Percentages shown are based on Net Assets.
Abbreviations:
ADR – American Depositary Receipt
BRL – Brazilian Real
CVA – Dutch Certification
GDR – Global Depositary Receipt
NVDR – Non-Voting Depositary Receipt
OJSC – Open Joint Stock Company
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 6,885,476 | ||
Aggregate gross unrealized depreciation | (2,903,132 | ) | ||
Net unrealized appreciation | $ | 3,982,344 | ||
Federal income tax cost of investments | $ | 80,024,236 |
Futures Contracts
FlexShares® International Quality Dividend Defensive Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation | |||||||||||||
Mini MSCI EAFE Index Futures Contracts | 15 | 06/16/2017 | $ | 1,367,850 | $ | 41,445 | ||||||||||
Mini MSCI Emerging Markets Index Futures Contracts | 7 | 06/16/2017 | 342,650 | 6,898 | ||||||||||||
$ | 48,343 |
Forward Foreign Currency Contracts
FlexShares® International Quality Dividend Defensive Index Fund had the following outstanding contracts as of April 30, 2017:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
NOK | 59,477 | Bank of New York | USD | 6,948 | 06/21/2017 | $ | (1 | ) | ||||||||||||||
USD | 79,213 | Citibank NA | AUD | 105,364 | 06/21/2017 | 488 | ||||||||||||||||
USD | 30,804 | Morgan Stanley | BRL | 100,000 | 06/21/2017 | (82 | ) | |||||||||||||||
$ | 405 |
Abbreviations:
AUD – Australian Dollar
BRL – Brazilian Real
NOK – Norwegian Krone
USD – US Dollar
See Accompanying Notes to the Financial Statements.
236 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
FlexShares® International Quality Dividend Defensive Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 6.3 | % | ||
Belgium | 1.2 | |||
Brazil | 2.0 | |||
Canada | 5.2 | |||
China | 2.2 | |||
Czech Republic | 1.0 | |||
Denmark | 0.5 | |||
Finland | 3.8 | |||
France | 5.4 | |||
Germany | 3.8 | |||
Hong Kong | 2.0 | |||
India | 2.9 | |||
Israel | 1.3 | |||
Italy | 3.6 | |||
Japan | 13.1 | |||
Malaysia | 1.0 | |||
Mexico | 0.9 | |||
Morocco | 0.2 | |||
Netherlands | 0.2 | |||
New Zealand | 1.1 | |||
Norway | 2.1 | |||
Poland | 0.7 | |||
Portugal | 0.2 | |||
Russia | 3.6 | |||
Singapore | 1.0 | |||
South Africa | 2.1 | |||
South Korea | 1.3 | |||
Spain | 2.1 | |||
Sweden | 3.0 | |||
Switzerland | 3.7 | |||
Taiwan | 3.5 | |||
Thailand | 1.0 | |||
Turkey | 1.6 | |||
United Kingdom | 14.3 | |||
Other1 | 2.1 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 237 |
Table of Contents
Schedule of Investments
FlexShares® International Quality Dividend Dynamic Index Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 98.7% | ||||||||
Air Freight & Logistics – 1.0% | ||||||||
bpost SA | 22,814 | $ | 546,553 | |||||
Auto Components – 2.4% | ||||||||
Cie Generale des Etablissements Michelin | 1,342 | 175,291 | ||||||
Continental AG | 770 | 172,310 | ||||||
Faurecia | 1,562 | 76,236 | ||||||
Nokian Renkaat OYJ(a) | 12,386 | 532,766 | ||||||
Sumitomo Rubber Industries Ltd. | 8,800 | 158,206 | ||||||
Valeo SA | 3,872 | 278,283 | ||||||
1,393,092 | ||||||||
Automobiles – 1.6% | ||||||||
Renault SA | 1,672 | 155,872 | ||||||
Subaru Corp. | 11,000 | 415,645 | ||||||
Toyota Motor Corp. | 4,400 | 238,217 | ||||||
Yamaha Motor Co. Ltd. | 4,400 | 104,247 | ||||||
913,981 | ||||||||
Banks – 13.0% | ||||||||
Agricultural Bank of China Ltd., Class H | 176,000 | 81,239 | ||||||
Aozora Bank Ltd. | 22,000 | 80,129 | ||||||
Australia & New Zealand Banking Group Ltd. | 22,044 | 540,068 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 50,489 | 404,048 | ||||||
Bank of China Ltd., Class H | 572,000 | 277,265 | ||||||
Canadian Imperial Bank of Commerce | 462 | 37,253 | ||||||
Commonwealth Bank of Australia | 18,502 | 1,209,329 | ||||||
Credit Agricole SA | 11,242 | 167,103 | ||||||
Grupo Financiero Santander Mexico SAB de CV, Class B | 57,200 | 103,081 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 132,000 | 86,217 | ||||||
ING Groep NV | 18,062 | 293,947 | ||||||
Intesa Sanpaolo SpA | 263,648 | 767,704 | ||||||
Intesa Sanpaolo SpA (Retirement Savings Plan) | 258,236 | 705,827 | ||||||
National Bank of Canada | 1,430 | 55,483 |
Shares | Value | |||||||
Banks – (continued) | ||||||||
Natixis SA | 93,522 | $ | 650,457 | |||||
Nordea Bank AB | 22,902 | 281,917 | ||||||
Royal Bank of Canada(a) | 572 | 39,103 | ||||||
Societe Generale SA | 5,808 | 317,559 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 11,000 | 406,962 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 4,400 | 150,667 | ||||||
Swedbank AB, Class A | 6,622 | 156,972 | ||||||
Toronto-Dominion Bank (The) | 396 | 18,602 | ||||||
Westpac Banking Corp.(a) | 25,212 | 661,049 | ||||||
7,491,981 | ||||||||
Beverages – 0.3% | ||||||||
Anheuser-Busch InBev SA/NV | 352 | 39,634 | ||||||
Coca-Cola Amatil Ltd. | 15,840 | 110,997 | ||||||
150,631 | ||||||||
Building Products – 0.4% | ||||||||
Cie de Saint-Gobain | 3,542 | 191,118 | ||||||
TOTO Ltd. | 700 | 26,720 | ||||||
217,838 | ||||||||
Capital Markets – 4.7% | ||||||||
Central China Securities Co. Ltd., Class H(a) | 198,000 | 105,141 | ||||||
China Galaxy Securities Co. Ltd., Class H | 99,000 | 90,376 | ||||||
CI Financial Corp. | 4,180 | 81,625 | ||||||
Coronation Fund Managers Ltd. | 81,202 | 384,600 | ||||||
GF Securities Co. Ltd., Class H | 220,000 | 455,413 | ||||||
Henderson Group plc | 31,174 | 93,085 | ||||||
IGM Financial, Inc. | 17,248 | 517,327 | ||||||
Macquarie Group Ltd. | 8,734 | 607,450 | ||||||
Schroders plc (Non-Voting) | 1,496 | 44,902 | ||||||
UBS Group AG (Registered) | 18,458 | 315,220 | ||||||
2,695,139 | ||||||||
Chemicals – 1.7% | ||||||||
BASF SE | 6,710 | 653,671 | ||||||
Kuraray Co. Ltd. | 4,400 | 70,971 | ||||||
Sumitomo Chemical Co. Ltd. | 24,000 | 135,427 |
See Accompanying Notes to the Financial Statements.
238 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Synthos SA | 75,856 | $ | 105,345 | |||||
965,414 | ||||||||
Commercial Services & Supplies – 1.1% | ||||||||
Edenred | 25,476 | 652,078 | ||||||
Communications Equipment – 0.2% | ||||||||
Telefonaktiebolaget LM Ericsson, Class B | 20,240 | 130,517 | ||||||
Construction & Engineering – 1.7% | ||||||||
ACS Actividades de Construccion y Servicios SA | 17,600 | 652,203 | ||||||
Vinci SA | 3,476 | 295,623 | ||||||
947,826 | ||||||||
Distributors – 0.2% | ||||||||
Imperial Holdings Ltd. | 7,700 | 97,224 | ||||||
Diversified Financial Services – 1.7% | ||||||||
BTG Pactual Group* | 24,200 | 140,261 | ||||||
Rural Electrification Corp. Ltd. | 263,318 | 829,086 | ||||||
969,347 | ||||||||
Diversified Telecommunication Services – 2.8% | ||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 317,108 | 533,952 | ||||||
Elisa OYJ | 4,818 | 164,060 | ||||||
Proximus SADP(a) | 3,432 | 104,961 | ||||||
Telia Co. AB(a) | 34,386 | 140,188 | ||||||
Vivendi SA* (a) | 33,616 | 666,781 | ||||||
1,609,942 | ||||||||
Electric Utilities – 2.2% | ||||||||
CEZ A/S | 6,710 | 117,128 | ||||||
EDP – Energias de Portugal SA | 43,846 | 144,671 | ||||||
Endesa SA | 12,716 | 299,582 | ||||||
Fortum OYJ(a) | 37,422 | 544,429 | ||||||
Korea Electric Power Corp. | 4,158 | 165,713 | ||||||
1,271,523 | ||||||||
Electrical Equipment – 1.0% | ||||||||
Mitsubishi Electric Corp. | 39,600 | 552,062 |
Shares | Value | |||||||
Electronic Equipment, Instruments & Components – 0.9% | ||||||||
Omron Corp. | 9,100 | $ | 380,833 | |||||
WPG Holdings Ltd. | 44,000 | 55,782 | ||||||
Zhen Ding Technology Holding Ltd. | 44,000 | 102,960 | ||||||
539,575 | ||||||||
Energy Equipment & Services – 0.2% | ||||||||
Petrofac Ltd. | 10,780 | 113,595 | ||||||
Equity Real Estate Investment Trusts (REITs) – 0.7% | ||||||||
H&R REIT | 6,314 | 106,949 | ||||||
Hui Xian REIT | 242,000 | 108,415 | ||||||
Unibail-Rodamco SE | 814 | 199,840 | ||||||
415,204 | ||||||||
Food & Staples Retailing – 1.5% | ||||||||
Casino Guichard Perrachon SA | 2,002 | 120,558 | ||||||
J Sainsbury plc | 35,398 | 126,123 | ||||||
Kesko OYJ, Class B | 1,628 | 76,266 | ||||||
METRO AG(a) | 3,718 | 122,312 | ||||||
Seven & i Holdings Co. Ltd. | 5,200 | 219,718 | ||||||
Wesfarmers Ltd. | 5,720 | 183,941 | ||||||
848,918 | ||||||||
Food Products – 1.1% | ||||||||
Marine Harvest ASA* | 7,524 | 125,422 | ||||||
Nestle SA (Registered) | 6,314 | 486,180 | ||||||
611,602 | ||||||||
Gas Utilities – 1.1% | ||||||||
Cia de Gas de Sao Paulo – COMGAS (Preference), Class A | 33,000 | 493,122 | ||||||
Gas Natural SDG SA | 7,194 | 162,632 | ||||||
655,754 | ||||||||
Health Care Equipment & Supplies – 1.2% | ||||||||
Hoya Corp. | 13,200 | 630,455 | ||||||
Sysmex Corp. | 800 | 48,659 | ||||||
679,114 | ||||||||
Hotels, Restaurants & Leisure – 2.3% | ||||||||
Crown Resorts Ltd. | 61,798 | 577,695 | ||||||
Sands China Ltd. | 140,800 | 639,050 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 239 |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
SJM Holdings Ltd. | 132,000 | $ | 128,138 | |||||
1,344,883 | ||||||||
Household Durables – 1.2% | ||||||||
Berkeley Group Holdings plc | 3,168 | 133,532 | ||||||
Sekisui Chemical Co. Ltd. | 33,000 | 553,602 | ||||||
687,134 | ||||||||
Independent Power and Renewable Electricity Producers – 1.2% | ||||||||
China Power International Development Ltd. | 286,000 | 106,640 | ||||||
Huadian Power International Corp. Ltd., Class H | 264,000 | 111,336 | ||||||
Unipro PJSC | 10,708,192 | 473,472 | ||||||
691,448 | ||||||||
Insurance – 6.6% | ||||||||
Aegon NV | 23,364 | 119,044 | ||||||
Ageas | 3,366 | 137,819 | ||||||
Allianz SE (Registered) | 3,366 | 640,713 | ||||||
Assicurazioni Generali SpA | 10,626 | 168,129 | ||||||
AXA SA(a) | 14,344 | 382,844 | ||||||
BB Seguridade Participacoes SA | 55,000 | 512,380 | ||||||
CNP Assurances(a) | 3,762 | 78,532 | ||||||
Legal & General Group plc | 56,430 | 179,669 | ||||||
Manulife Financial Corp. | 14,806 | 259,238 | ||||||
Mapfre SA | 25,762 | 89,884 | ||||||
MMI Holdings Ltd. | 53,570 | 93,301 | ||||||
Old Mutual plc | 52,250 | 131,141 | ||||||
Power Corp. of Canada | 5,258 | 121,634 | ||||||
Power Financial Corp. | 4,708 | 119,447 | ||||||
St James’s Place plc | 4,444 | 66,003 | ||||||
Standard Life plc | 127,006 | 597,939 | ||||||
T&D Holdings, Inc. | 6,600 | 97,902 | ||||||
3,795,619 | ||||||||
Internet Software & Services – 0.1% | ||||||||
Tencent Holdings Ltd. | 2,200 | 68,849 | ||||||
Machinery – 3.1% | ||||||||
Hino Motors Ltd. | 33,000 | 413,573 | ||||||
JTEKT Corp. | 8,800 | 138,470 | ||||||
Komatsu Ltd. | 22,000 | 586,561 |
Shares | Value | |||||||
Machinery – (continued) | ||||||||
Metso OYJ | 12,210 | $ | 437,840 | |||||
NGK Insulators Ltd. | 6,600 | 140,976 | ||||||
NSK Ltd. | 6,600 | 89,997 | ||||||
1,807,417 | ||||||||
Media – 1.8% | ||||||||
Eutelsat Communications SA | 15,070 | 356,600 | ||||||
Multiplus SA | 44,000 | 537,139 | ||||||
Pearson plc | 14,784 | 122,220 | ||||||
1,015,959 | ||||||||
Metals & Mining – 5.5% | ||||||||
Boliden AB | 4,532 | 129,591 | ||||||
Cia Siderurgica Nacional SA* | 138,600 | 333,631 | ||||||
Eregli Demir ve Celik Fabrikalari TAS | 350,680 | 642,400 | ||||||
First Quantum Minerals Ltd. | 4,950 | 47,100 | ||||||
Glencore plc* | 91,256 | 358,497 | ||||||
MMC Norilsk Nickel PJSC | 468 | 71,826 | ||||||
MMC Norilsk Nickel PJSC, ADR | 29,354 | 451,611 | ||||||
NMDC Ltd. | 269,060 | 533,268 | ||||||
Rio Tinto Ltd. | 3,498 | 158,110 | ||||||
Rio Tinto plc | 9,152 | 362,553 | ||||||
Severstal PJSC | 3,080 | 41,936 | ||||||
3,130,523 | ||||||||
Multi-Utilities – 0.3% | ||||||||
Engie SA(a) | 14,146 | 199,486 | ||||||
Oil, Gas & Consumable Fuels – 8.9% | ||||||||
BP plc | 147,789 | 846,069 | ||||||
Canadian Natural Resources Ltd. | 638 | 20,288 | ||||||
Coal India Ltd. | 104,654 | 450,063 | ||||||
Crescent Point Energy Corp. | 5,192 | 51,301 | ||||||
Husky Energy, Inc.* | 45,848 | 528,461 | ||||||
Inter Pipeline Ltd. | 25,674 | 522,193 | ||||||
Royal Dutch Shell plc, Class A | 33,682 | 872,611 | ||||||
Royal Dutch Shell plc, Class B | 26,884 | 713,883 | ||||||
Surgutneftegas OJSC (Preference) | 231,736 | 124,034 | ||||||
Surgutneftegas OJSC (Preference), ADR | 68,743 | 369,837 | ||||||
TOTAL SA(a) | 9,787 | 502,717 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 4,884 | 123,002 | ||||||
5,124,459 |
See Accompanying Notes to the Financial Statements.
240 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Shares | Value | |||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – 0.4% | ||||||||
Mondi plc | 3,652 | $ | 94,543 | |||||
UPM-Kymmene OYJ | 5,698 | 150,343 | ||||||
244,886 | ||||||||
Personal Products – 0.8% | ||||||||
Kose Corp. | 4,600 | 436,189 | ||||||
Pharmaceuticals – 5.0% | ||||||||
AstraZeneca plc | 9,526 | 571,538 | ||||||
Bayer AG (Registered) | 616 | 76,202 | ||||||
GlaxoSmithKline plc | 37,180 | 745,575 | ||||||
Novartis AG (Registered) | 5,698 | 438,176 | ||||||
Novo Nordisk A/S, Class B | 550 | 21,397 | ||||||
Roche Holding AG | 1,188 | 310,650 | ||||||
Roche Holding AG – BR | 682 | 178,473 | ||||||
Sanofi(a) | 3,256 | 307,086 | ||||||
Takeda Pharmaceutical Co. Ltd. | 4,400 | 210,862 | ||||||
2,859,959 | ||||||||
Professional Services – 0.5% | ||||||||
Adecco Group AG (Registered)* | 2,134 | 158,423 | ||||||
Capita plc | 19,228 | 138,312 | ||||||
296,735 | ||||||||
Real Estate Management & Development – 1.3% | ||||||||
China Evergrande Group(a) | 176,000 | 188,049 | ||||||
KWG Property Holding Ltd. | 187,000 | 141,376 | ||||||
Land & Houses PCL, NVDR | 831,600 | 247,629 | ||||||
Shimao Property Holdings Ltd. | 88,000 | 141,433 | ||||||
718,487 | ||||||||
Semiconductors & Semiconductor Equipment – 2.4% | ||||||||
Novatek Microelectronics Corp. | 154,000 | 592,092 | ||||||
Siliconware Precision Industries Co. Ltd. | 352,000 | 570,508 | ||||||
STMicroelectronics NV | 10,208 | 165,073 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 6,000 | 38,679 | ||||||
Tokyo Electron Ltd. | 200 | 23,262 | ||||||
1,389,614 | ||||||||
Technology Hardware, Storage & Peripherals – 2.9% | ||||||||
Canon, Inc. | 8,800 | 291,781 |
Shares | Value | |||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Catcher Technology Co. Ltd. | 66,000 | $ | 678,135 | |||||
Compal Electronics, Inc. | 484,000 | 324,046 | ||||||
Inventec Corp. | 88,000 | 65,480 | ||||||
Pegatron Corp. | 48,000 | 141,434 | ||||||
Samsung Electronics Co. Ltd. | 44 | 86,268 | ||||||
Seiko Epson Corp. | 4,400 | 89,997 | ||||||
1,677,141 | ||||||||
Textiles, Apparel & Luxury Goods – 1.8% | ||||||||
Belle International Holdings Ltd.(b) | 132,000 | 89,442 | ||||||
HUGO BOSS AG | 5,368 | 408,190 | ||||||
Li & Fung Ltd.(a) | 1,232,000 | 516,399 | ||||||
1,014,031 | ||||||||
Tobacco – 4.3% | ||||||||
British American Tobacco plc | 27,258 | 1,839,072 | ||||||
Japan Tobacco, Inc. | 19,800 | 658,283 | ||||||
2,497,355 | ||||||||
Trading Companies & Distributors – 0.6% | ||||||||
ITOCHU Corp. | 11,000 | 155,522 | ||||||
Sumitomo Corp. | 13,200 | 176,264 | ||||||
331,786 | ||||||||
Transportation Infrastructure – 0.9% | ||||||||
Abertis Infraestructuras SA(a) | 21,437 | 377,003 | ||||||
Hutchison Port Holdings Trust(a) | 277,200 | 112,266 | ||||||
489,269 | ||||||||
Wireless Telecommunication Services – 4.1% | ||||||||
Freenet AG | 4,444 | 139,420 | ||||||
Intouch Holdings PCL, NVDR | 347,600 | 537,629 | ||||||
Mobile TeleSystems PJSC | 35,401 | 170,101 | ||||||
Mobile TeleSystems PJSC, ADR | 40,644 | 419,446 | ||||||
MTN Group Ltd.(a) | 16,126 | 152,419 | ||||||
SoftBank Group Corp. | 2,500 | 189,333 | ||||||
StarHub Ltd.(a) | 283,800 | 566,504 | ||||||
Tele2 AB, Class B | 14,322 | 144,275 | ||||||
Turkcell Iletisim Hizmetleri A/S | 12,078 | 42,177 | ||||||
2,361,304 | ||||||||
Total Common Stocks (Cost $52,919,927) | 56,651,443 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 241 |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
No. of Rights | Value | |||||||
RIGHT – 0.0%(c) | ||||||||
Gas Utilities – 0.0%(c) | ||||||||
Cia de Gas de Sao Paulo – COMGAS, expiring 5/26/2017, price 46.41 BRL (Cost $–)* (b) | 706 | $ | 294 | |||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(d) – 1.9% | ||||||||
REPURCHASE AGREEMENTS – 1.9% | ||||||||
Citigroup Global Markets, Inc., 1.09%, dated 4/28/2017, due 5/1/2017, repurchase price $50,005, collateralized by various Common Stocks; total market value $55,000 | $ | 50,000 | 50,000 | |||||
Citigroup Global Markets, Inc., 0.83%, dated 4/28/2017, due 5/1/2017, repurchase price $1,016,858, collateralized by various U.S. Government Agency Mortgage Securities, 3.50%, maturing 4/1/2042 – 11/20/2042; U.S. Treasury Securities, ranging from 0.00% – 0.88%, maturing 1/15/2018 – 11/15/2046; total market value $1,037,124 | 1,016,788 | 1,016,788 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Deutsche Bank AG, London Branch, 1.30%, dated 4/28/2017, due 5/1/2017, repurchase price $50,005, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 7.13%, maturing 7/31/2017 – 2/15/2046; Common Stocks; total market value $52,458 | $ | 50,000 | $ | 50,000 | ||||
1,116,788 | ||||||||
Total Securities Lending Reinvestments (Cost $1,116,788) | 1,116,788 | |||||||
Total Investments – 100.6% (Cost $54,036,715) | 57,768,525 | |||||||
Liabilities Less Other Assets – (0.6%) |
| (321,179 | ) | |||||
NET ASSETS – 100.0% | $ | 57,447,346 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at 4/30/2017. The total value of securities on loan at 4/30/2017 was $3,180,971, collateralized in the form of cash with a value of $1,116,788 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $527,436 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.13%, and maturity dates ranging from 5/18/2017 – 2/15/2047 and $1,712,844 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from 5/15/2017 – 11/2/2086; a total value of $3,357,068. |
(b) | Security fair valued as of 4/30/2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at 4/30/2017 amounted to $89,736, which represents approximately 0.16% of net assets of the Fund. |
(c) | Represents less than 0.05% of net assets. |
(d) | The security was purchased with cash collateral held from securities on loan at 4/30/2017. The total value of securities purchased was $1,116,788. |
Percentages shown are based on Net Assets.
Abbreviations:
ADR – American Depositary Receipt
BRL – Brazilian Real
NVDR – Non-Voting Depositary Receipt
OJSC – Open Joint Stock Company
See Accompanying Notes to the Financial Statements.
242 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 4,658,139 | ||
Aggregate gross unrealized depreciation | (1,033,419 | ) | ||
Net unrealized appreciation | $ | 3,624,720 | ||
Federal income tax cost of investments | $ | 54,143,805 |
Futures Contracts
FlexShares® International Quality Dividend Dynamic Index Fund had the following open long futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Appreciation | |||||||||||||
Mini MSCI EAFE Index Futures Contracts | 7 | 06/16/2017 | $ | 638,330 | $ | 22,912 | ||||||||||
Mini MSCI Emerging Markets Index Futures Contracts | 3 | 06/16/2017 | 146,850 | 6,249 | ||||||||||||
$ | 29,161 |
FlexShares® International Quality Dividend Dynamic Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 7.0 | % | ||
Belgium | 1.4 | |||
Brazil | 3.5 | |||
Canada | 4.4 | |||
China | 3.6 | |||
Czech Republic | 0.2 | |||
Denmark | 0.0 | † | ||
Finland | 3.3 | |||
France | 10.3 | |||
Germany | 3.9 | |||
Hong Kong | 2.2 | |||
India | 3.2 | |||
Israel | 0.9 | |||
Italy | 2.9 | |||
Japan | 13.7 | |||
Mexico | 0.2 | |||
Netherlands | 0.7 | |||
Norway | 0.2 | |||
Poland | 0.2 | |||
Portugal | 0.3 | |||
Russia | 3.7 | |||
Singapore | 1.2 | |||
South Africa | 1.3 | |||
South Korea | 0.4 | |||
Spain | 3.5 | |||
Sweden | 1.7 | |||
Switzerland | 3.3 | |||
Taiwan | 4.5 | |||
Thailand | 1.4 | |||
Turkey | 1.4 | |||
United Kingdom | 14.2 | |||
Other1 | 1.3 | |||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 243 |
Table of Contents
Schedule of Investments
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund
April 30, 2017 (Unaudited)
Principal Amount | Value | |||||||
U.S. TREASURY OBLIGATIONS – 99.7% | ||||||||
U.S. Treasury Inflation Linked Notes | ||||||||
1.38%, 7/15/2018 | $ | 36,005,972 | $ | 36,966,395 | ||||
2.13%, 1/15/2019 | 35,633,876 | 37,245,703 | ||||||
0.13%, 4/15/2019 | 199,207,826 | 201,106,874 | ||||||
1.88%, 7/15/2019 | 150,096,804 | 158,565,116 | ||||||
1.38%, 1/15/2020 | 253,219,171 | 265,611,464 | ||||||
0.13%, 4/15/2020 | 485,019,182 | 490,867,543 | ||||||
1.25%, 7/15/2020 | 336,815,376 | 355,215,263 | ||||||
1.13%, 1/15/2021 | 64,385,011 | 67,679,721 | ||||||
0.13%, 4/15/2021 | 169,668,009 | 171,346,535 | ||||||
0.63%, 7/15/2021 | 82,754,515 | 85,822,224 | ||||||
0.13%, 1/15/2022 | 94,951,186 | 95,811,634 | ||||||
0.13%, 4/15/2022 | 45,741,717 | 46,061,772 | ||||||
Total U.S. Treasury Obligations (Cost $2,007,703,843) | 2,012,300,244 | |||||||
Total Investments – 99.7% (Cost $2,007,703,843) | 2,012,300,244 | |||||||
Other Assets Less Liabilities – 0.3% |
| 5,452,650 | ||||||
NET ASSETS – 100.0% | $ | 2,017,752,894 |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 6,796,033 | ||
Aggregate gross unrealized depreciation | (3,197,812 | ) | ||
Net unrealized appreciation | $ | 3,598,221 | ||
Federal income tax cost of investments | $ | 2,008,702,023 |
See Accompanying Notes to the Financial Statements.
244 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund
April 30, 2017 (Unaudited)
Principal Amount | Value | |||||||
U.S. TREASURY OBLIGATIONS – 99.9% | ||||||||
U.S. Treasury Inflation Linked Bonds | ||||||||
2.38%, 1/15/2025 | $ | 30,945,321 | $ | 35,860,180 | ||||
2.00%, 1/15/2026 | 20,937,534 | 23,898,165 | ||||||
U.S. Treasury Inflation Linked Notes | ||||||||
1.25%, 7/15/2020 | 30,938,943 | 32,629,107 | ||||||
1.13%, 1/15/2021 | 34,931,405 | 36,718,915 | ||||||
0.13%, 4/15/2021 | 39,561,177 | 39,952,555 | ||||||
0.63%, 7/15/2021 | 34,557,697 | 35,838,751 | ||||||
0.13%, 1/15/2022 | 95,571,135 | 96,437,200 | ||||||
0.13%, 4/15/2022 | 34,858,464 | 35,102,369 | ||||||
0.13%, 7/15/2022 | 93,900,416 | 94,824,772 | ||||||
0.13%, 1/15/2023 | 93,287,320 | 93,533,319 | ||||||
0.38%, 7/15/2023 | 92,572,152 | 94,335,003 | ||||||
0.63%, 1/15/2024 | 36,625,616 | 37,663,586 | ||||||
0.13%, 7/15/2024 | 35,994,754 | 35,847,104 | ||||||
0.25%, 1/15/2025 | 36,081,486 | 35,989,334 | ||||||
0.38%, 7/15/2025 | 36,039,688 | 36,366,748 | ||||||
0.63%, 1/15/2026 | 20,504 | 21,020 | ||||||
Total U.S. Treasury Obligations (Cost $760,199,875) | 765,018,128 | |||||||
Total Investments – 99.9% (Cost $760,199,875) | 765,018,128 | |||||||
Other Assets Less Liabilities – 0.1% |
| 899,126 | ||||||
NET ASSETS – 100.0% | $ | 765,917,254 |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 6,110,186 | ||
Aggregate gross unrealized depreciation | (1,526,280 | ) | ||
Net unrealized appreciation | $ | 4,583,906 | ||
Federal income tax cost of investments | $ | 760,434,222 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 245 |
Table of Contents
Schedule of Investments
FlexShares® Disciplined Duration MBS Index Fund
April 30, 2017 (Unaudited)
Principal Amount | Value | |||||||
MORTGAGE-BACKED SECURITIES – 99.3% | ||||||||
FHLMC | ||||||||
4.50%, 1/1/2018 | $ | 44,083 | $ | 45,276 | ||||
4.50%, 8/1/2018 | 54,599 | 56,075 | ||||||
4.50%, 7/1/2019 | 30,841 | 31,868 | ||||||
4.50%, 2/1/2020 | 188,649 | 195,252 | ||||||
4.50%, 9/1/2020 | 46,937 | 48,324 | ||||||
4.50%, 6/1/2024 | 302,395 | 319,404 | ||||||
4.00%, 9/1/2024 | 249,210 | 261,445 | ||||||
4.50%, 3/1/2025 | 225,390 | 240,583 | ||||||
4.00%, 4/1/2025 | 379,303 | 393,702 | ||||||
4.50%, 6/1/2025 | 272,839 | 291,595 | ||||||
4.00%, 10/1/2025 | 234,116 | 246,305 | ||||||
4.50%, 5/1/2026 | 107,925 | 115,002 | ||||||
3.50%, 8/1/2027 | 297,558 | 311,697 | ||||||
2.50%, 10/1/2027 | 153,744 | 156,399 | ||||||
2.50%, 2/1/2028 | 74,924 | 76,217 | ||||||
2.50%, 4/1/2028 | 38,456 | 39,109 | ||||||
2.50%, 11/1/2028 | 29,868 | 30,356 | ||||||
3.00%, 6/1/2029 | 115,799 | 119,423 | ||||||
2.00%, 11/1/2031 | 323,881 | 317,553 | ||||||
3.00%, 4/1/2033 | 79,599 | 81,977 | ||||||
6.00%, 4/1/2034 | 97,526 | 111,541 | ||||||
6.50%, 7/1/2034 | 131,133 | 147,414 | ||||||
3.00%, 5/1/2035 | 383,034 | 391,649 | ||||||
6.00%, 5/1/2035 | 352,696 | 409,736 | ||||||
6.00%, 12/1/2035 | 173,091 | 197,966 | ||||||
5.50%, 12/1/2036 | 225,788 | 250,353 | ||||||
5.50%, 2/1/2037 | 79,269 | 87,997 | ||||||
5.50%, 9/1/2037 | 79,987 | 88,775 | ||||||
6.50%, 12/1/2037 | 82,134 | 91,279 | ||||||
5.50%, 1/1/2038 | 41,455 | 46,016 | ||||||
5.00%, 7/1/2038 | 107,146 | 117,127 | ||||||
5.50%, 7/1/2038 | 8,830 | 9,794 | ||||||
5.00%, 10/1/2038 | 78,262 | 85,541 | ||||||
6.50%, 12/1/2038 | 162,486 | 181,787 | ||||||
5.50%, 12/1/2038 | 27,624 | 30,675 | ||||||
5.00%, 2/1/2039 | 28,344 | 30,964 | ||||||
5.50%, 3/1/2039 | 229,807 | 255,019 | ||||||
6.50%, 4/1/2039 | 67,813 | 79,417 | ||||||
5.00%, 5/1/2039 | 170,230 | 188,709 | ||||||
5.00%, 8/1/2039 | 14,016 | 15,466 | ||||||
5.00%, 9/1/2039 | 17,396 | 19,012 | ||||||
4.50%, 10/1/2039 | 32,679 | 35,259 | ||||||
5.50%, 1/1/2040 | 214,880 | 238,665 |
Principal Amount | Value | |||||||
4.00%, 2/1/2040 | $ | 19,095 | $ | 20,186 | ||||
6.00%, 5/1/2040 | 329,346 | 373,138 | ||||||
5.50%, 6/1/2040 | 88,307 | 98,045 | ||||||
3.50%, 12/1/2040 | 195,397 | 201,889 | ||||||
4.00%, 1/1/2041 | 134,247 | 142,240 | ||||||
4.50%, 3/1/2041 | 221,714 | 239,414 | ||||||
5.50%, 4/1/2041 | 40,296 | 44,878 | ||||||
5.50%, 6/1/2041 | 270,991 | 300,946 | ||||||
4.50%, 8/1/2041 | 190,181 | 206,372 | ||||||
3.50%, 11/1/2041 | 282,609 | 291,971 | ||||||
5.00%, 2/1/2042 | 205,065 | 224,230 | ||||||
4.00%, 4/1/2042 | 153,437 | 162,776 | ||||||
3.00%, 3/1/2043 | 44,026 | 44,252 | ||||||
3.00%, 4/1/2043 | 150,318 | 151,082 | ||||||
3.00%, 6/1/2043 | 229,019 | 230,018 | ||||||
4.50%, 3/1/2044 | 137,383 | 147,995 | ||||||
4.00%, 6/1/2044 | 23,185 | 24,437 | ||||||
4.50%, 7/1/2044 | 229,405 | 247,870 | ||||||
4.00%, 8/1/2044 | 67,998 | 71,670 | ||||||
4.50%, 9/1/2044 | 108,766 | 117,150 | ||||||
4.50%, 12/1/2044 | 58,768 | 63,285 | ||||||
3.00%, 7/1/2045 | 128,249 | 128,199 | ||||||
4.50%, 9/1/2045 | 169,926 | 182,869 | ||||||
4.00%, 10/1/2045 | 255,396 | 269,191 | ||||||
3.00%, 4/1/2046 | 314,959 | 314,836 | ||||||
4.00%, 4/1/2046 | 127,251 | 134,124 | ||||||
4.00%, 5/1/2046 | 139,902 | 147,458 | ||||||
3.50%, 5/1/2046 | 254,197 | 261,688 | ||||||
4.50%, 5/1/2046 | 265,629 | 285,948 | ||||||
FNMA | ||||||||
4.50%, 10/1/2018 | 82,376 | 84,585 | ||||||
4.50%, 11/1/2018 | 26,981 | 27,705 | ||||||
4.00%, 12/1/2018 | 57,532 | 59,708 | ||||||
4.00%, 7/1/2019 | 11,919 | 12,369 | ||||||
4.50%, 10/1/2019 | 74,457 | 76,454 | ||||||
4.50%, 1/1/2020 | 224,186 | 230,199 | ||||||
4.50%, 4/1/2020 | 26,609 | 27,323 | ||||||
4.50%, 11/1/2020 | 173,785 | 178,981 | ||||||
4.50%, 4/1/2023 | 117,949 | 124,730 | ||||||
4.00%, 5/1/2024 | 188,951 | 198,591 | ||||||
4.50%, 8/1/2024 | 142,764 | 150,780 | ||||||
4.50%, 9/1/2024 | 270,717 | 286,621 | ||||||
4.00%, 9/1/2025 | 222,261 | 234,879 | ||||||
4.50%, 12/1/2025 | 141,609 | 149,328 | ||||||
4.50%, 12/1/2026 | 236,583 | 250,388 |
See Accompanying Notes to the Financial Statements.
246 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Disciplined Duration MBS Index Fund (cont.)
Principal Amount | Value | |||||||
MORTGAGE-BACKED SECURITIES – (continued) | ||||||||
4.50%, 1/1/2027 | $ | 108,012 | $ | 113,579 | ||||
2.50%, 6/1/2027 | 32,373 | 32,878 | ||||||
2.50%, 8/1/2027 | 57,148 | 58,045 | ||||||
2.50%, 12/1/2027 | 192,406 | 195,455 | ||||||
3.00%, 3/1/2028 | 62,252 | 64,282 | ||||||
3.00%, 6/1/2028 | 73,225 | 75,580 | ||||||
3.00%, 7/1/2028 | 54,453 | 56,157 | ||||||
2.50%, 8/1/2028 | 102,348 | 103,915 | ||||||
2.50%, 9/1/2028 | 84,672 | 85,968 | ||||||
3.00%, 11/1/2028 | 54,443 | 56,149 | ||||||
4.00%, 7/1/2029 | 93,058 | 97,835 | ||||||
4.00%, 11/1/2029 | 231,762 | 244,916 | ||||||
3.00%, 9/1/2030 | 125,862 | 129,623 | ||||||
3.50%, 10/1/2030 | 189,200 | 196,210 | ||||||
2.00%, 9/1/2031 | 376,051 | 368,703 | ||||||
6.00%, 12/1/2032 | 35,470 | 40,668 | ||||||
3.00%, 3/1/2033 | 261,495 | 269,457 | ||||||
6.00%, 8/1/2034 | 270,083 | 307,922 | ||||||
6.50%, 9/1/2034 | 303,290 | 346,935 | ||||||
6.00%, 10/1/2034 | 228,163 | 259,829 | ||||||
6.00%, 11/1/2035 | 63,141 | 72,375 | ||||||
5.50%, 12/1/2036 | 175,569 | 195,316 | ||||||
5.50%, 1/1/2037 | 50,192 | 55,995 | ||||||
5.50%, 2/1/2037 | 23,657 | 26,656 | ||||||
6.00%, 8/1/2037 | 114,883 | 131,741 | ||||||
5.50%, 6/1/2038 | 225,952 | 252,209 | ||||||
5.50%, 9/1/2038 | 52,597 | 58,789 | ||||||
5.00%, 1/1/2039 | 17,927 | 19,631 | ||||||
5.50%, 3/1/2039 | 296,568 | 332,762 | ||||||
4.50%, 4/1/2039 | 182,648 | 196,897 | ||||||
5.50%, 1/1/2040 | 54,351 | 60,598 | ||||||
5.50%, 4/1/2040 | 64,271 | 71,563 | ||||||
4.50%, 4/1/2040 | 30,408 | 32,827 | ||||||
4.00%, 9/1/2040 | 126,665 | 133,890 | ||||||
3.50%, 1/1/2041 | 50,137 | 51,876 | ||||||
3.50%, 2/1/2041 | 96,507 | 99,852 | ||||||
4.50%, 2/1/2041 | 53,168 | 57,451 | ||||||
4.00%, 2/1/2041 | 210,161 | 222,164 | ||||||
5.50%, 4/1/2041 | 13,921 | 15,512 | ||||||
4.50%, 4/1/2041 | 140,857 | 152,242 | ||||||
4.50%, 6/1/2041 | 50,194 | 54,474 | ||||||
5.50%, 8/1/2041 | 247,900 | 278,204 | ||||||
4.50%, 8/1/2041 | 66,771 | 72,273 | ||||||
5.50%, 9/1/2041 | 124,150 | 138,486 | ||||||
4.50%, 1/1/2042 | 67,359 | 72,787 |
Principal Amount | Value | |||||||
3.50%, 1/1/2042 | $ | 173,081 | $ | 178,992 | ||||
4.00%, 1/1/2042 | 106,388 | 112,527 | ||||||
3.50%, 4/1/2042 | 121,596 | 125,678 | ||||||
3.50%, 8/1/2042 | 187,151 | 193,415 | ||||||
3.50%, 1/1/2043 | 132,336 | 136,765 | ||||||
3.00%, 2/1/2043 | 295,155 | 296,570 | ||||||
3.00%, 5/1/2043 | 17,149 | 17,231 | ||||||
3.00%, 6/1/2043 | 137,331 | 137,968 | ||||||
3.50%, 7/1/2043 | 72,000 | 74,349 | ||||||
3.50%, 8/1/2043 | 128,182 | 132,254 | ||||||
4.00%, 8/1/2043 | 42,933 | 45,268 | ||||||
5.00%, 8/1/2043 | 289,579 | 317,111 | ||||||
4.00%, 9/1/2043 | 44,578 | 47,364 | ||||||
3.00%, 9/1/2043 | 178,279 | 179,133 | ||||||
4.50%, 9/1/2043 | 109,388 | 117,809 | ||||||
5.00%, 3/1/2044 | 129,751 | 145,303 | ||||||
5.00%, 5/1/2044 | 170,672 | 187,774 | ||||||
5.00%, 6/1/2044 | 66,632 | 73,115 | ||||||
4.50%, 10/1/2044 | 254,386 | 274,251 | ||||||
3.00%, 2/1/2045 | 145,247 | 145,392 | ||||||
4.00%, 2/1/2045 | 207,415 | 218,696 | ||||||
4.00%, 4/1/2045 | 79,874 | 84,885 | ||||||
3.00%, 4/1/2045 | 152,484 | 152,636 | ||||||
3.00%, 5/1/2045 | 224,042 | 224,179 | ||||||
4.00%, 11/1/2045 | 162,429 | 172,620 | ||||||
4.50%, 3/1/2046 | 260,217 | 280,188 | ||||||
4.00%, 5/1/2046 | 299,018 | 315,282 | ||||||
3.50%, 5/1/2046 | 164,964 | 169,831 | ||||||
4.50%, 7/1/2046 | 263,909 | 284,163 | ||||||
GNMA | ||||||||
2.50%, 4/20/2027 | 197,091 | 201,185 | ||||||
2.50%, 1/20/2028 | 104,509 | 106,681 | ||||||
2.50%, 12/20/2028 | 44,865 | 45,797 | ||||||
2.50%, 3/20/2031 | 293,158 | 299,274 | ||||||
6.00%, 3/15/2033 | 336,244 | 389,776 | ||||||
5.50%, 6/15/2033 | 504,002 | 569,007 | ||||||
6.00%, 12/15/2033 | 236,534 | 278,663 | ||||||
5.50%, 3/20/2036 | 444,525 | 494,173 | ||||||
5.50%, 3/15/2038 | 198,798 | 223,503 | ||||||
5.50%, 2/20/2039 | 184,287 | 203,786 | ||||||
5.00%, 4/15/2039 | 183,734 | 202,319 | ||||||
5.00%, 5/15/2039 | 136,449 | 150,609 | ||||||
5.50%, 5/15/2039 | 94,214 | 105,254 | ||||||
5.00%, 6/15/2039 | 245,736 | 273,700 | ||||||
5.50%, 9/15/2039 | 37,426 | 41,798 | ||||||
5.00%, 9/15/2039 | 284,977 | 318,119 | ||||||
4.00%, 9/20/2039 | 54,646 | 58,368 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 247 |
Table of Contents
FlexShares® Disciplined Duration MBS Index Fund (cont.)
Principal Amount | Value | |||||||
MORTGAGE-BACKED SECURITIES – (continued) | ||||||||
5.00%, 11/15/2039 | $ | 3,463 | $ | 3,831 | ||||
5.50%, 12/15/2039 | 106,380 | 118,819 | ||||||
4.00%, 8/15/2040 | 33,004 | 35,128 | ||||||
4.00%, 10/15/2040 | 27,302 | 28,894 | ||||||
5.50%, 1/20/2041 | 57,720 | 64,181 | ||||||
4.00%, 3/15/2041 | 7,720 | 8,196 | ||||||
4.00%, 6/15/2041 | 252,603 | 268,122 | ||||||
3.50%, 9/15/2041 | 163,261 | 169,730 | ||||||
5.50%, 9/20/2041 | 206,249 | 227,532 | ||||||
3.50%, 11/20/2041 | 133,818 | 139,598 | ||||||
3.50%, 1/15/2042 | 40,118 | 41,799 | ||||||
5.50%, 2/20/2042 | 54,886 | 61,113 | ||||||
3.50%, 8/20/2042 | 70,961 | 74,092 | ||||||
3.00%, 10/15/2042 | 362,897 | 369,078 | ||||||
3.00%, 12/20/2042 | 164,756 | 167,568 | ||||||
3.50%, 12/20/2042 | 27,618 | 28,838 | ||||||
5.50%, 2/20/2043 | 30,515 | 33,774 | ||||||
3.00%, 2/20/2043 | 109,899 | 111,658 | ||||||
3.50%, 3/15/2043 | 65,389 | 68,270 | ||||||
3.00%, 3/20/2043 | 48,585 | 49,373 | ||||||
3.00%, 5/15/2043 | 313,498 | 318,831 | ||||||
2.50%, 5/20/2043 | 180,613 | 177,576 | ||||||
3.50%, 6/15/2043 | 339,723 | 355,292 | ||||||
3.00%, 9/20/2043 | 182,238 | 185,477 | ||||||
5.00%, 1/20/2044 | 11,220 | 12,098 | ||||||
3.50%, 8/20/2044 | 158,354 | 164,952 | ||||||
4.00%, 9/15/2044 | 72,696 | 76,926 | ||||||
3.50%, 10/15/2044 | 118,799 | 124,219 | ||||||
3.50%, 10/20/2044 | 26,734 | 27,835 | ||||||
2.50%, 11/20/2044 | 168,358 | 165,530 | ||||||
4.00%, 12/15/2044 | 108,254 | 114,554 | ||||||
3.00%, 12/20/2044 | 80,896 | 82,109 | ||||||
3.50%, 12/20/2044 | 83,069 | 86,489 | ||||||
3.50%, 1/15/2045 | 346,091 | 361,866 | ||||||
3.00%, 1/20/2045 | 102,609 | 104,142 | ||||||
3.50%, 2/20/2045 | 110,825 | 115,373 | ||||||
3.00%, 3/15/2045 | 229,957 | 233,572 | ||||||
3.00%, 3/20/2045 | 126,354 | 128,239 | ||||||
5.50%, 4/20/2045 | 201,363 | 224,337 | ||||||
3.50%, 5/15/2045 | 130,099 | 135,254 | ||||||
3.00%, 7/15/2045 | 126,170 | 127,951 | ||||||
3.50%, 12/20/2045 | 363,595 | 378,516 | ||||||
3.00%, 12/20/2045 | 185,314 | 188,080 | ||||||
4.00%, 3/15/2046 | 272,223 | 288,099 | ||||||
4.00%, 3/20/2046 | 350,566 | 371,346 |
Principal Amount | Value | |||||||
3.50%, 4/20/2046 | $ | 251,324 | $ | 261,638 | ||||
4.00%, 5/20/2046 | 328,510 | 347,983 | ||||||
3.00%, 9/20/2046 | 193,746 | 196,637 | ||||||
Total Mortgage-Backed Securities (Cost $36,230,781) | 35,896,473 | |||||||
Total Investments – 99.3% (Cost $36,230,781) | 35,896,473 | |||||||
Other Assets Less Liabilities – 0.7% |
| 266,770 | ||||||
NET ASSETS – 100.0% | $ | 36,163,243 |
Percentages shown are based on Net Assets.
Abbreviations:
FHLMC – Federal Home Loan Mortgage Corp.
FNMA – Federal National Mortgage Association
GNMA – Government National Mortgage Association
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 34,651 | ||
Aggregate gross unrealized depreciation | (368,959 | ) | ||
Net unrealized depreciation | $ | (334,308 | ) | |
Federal income tax cost of investments | $ | 36,230,781 |
See Accompanying Notes to the Financial Statements.
248 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Credit-Scored US Corporate Bond Index Fund
April 30, 2017 (Unaudited)
Principal Amount | Value | |||||||
CORPORATE BONDS – 98.3% | ||||||||
Aerospace & Defense – 1.4% | ||||||||
Boeing Co. (The) | ||||||||
4.88%, 2/15/2020 | $ | 10,000 | $ | 10,843 | ||||
L3 Technologies, Inc. | ||||||||
5.20%, 10/15/2019 | 55,000 | 58,842 | ||||||
3.85%, 12/15/2026 | 100,000 | 102,870 | ||||||
Lockheed Martin Corp. | ||||||||
3.35%, 9/15/2021 | 75,000 | 78,150 | ||||||
3.55%, 1/15/2026 | 70,000 | 72,340 | ||||||
Northrop Grumman Corp. | ||||||||
3.20%, 2/1/2027 | 50,000 | 50,160 | ||||||
Rockwell Collins, Inc. | ||||||||
3.50%, 3/15/2027 | 100,000 | 101,679 | ||||||
United Technologies Corp. | ||||||||
4.50%, 4/15/2020 | 80,000 | 86,224 | ||||||
561,108 | ||||||||
Air Freight & Logistics – 0.3% | ||||||||
FedEx Corp. | ||||||||
3.20%, 2/1/2025 | 70,000 | 70,758 | ||||||
United Parcel Service, Inc. | ||||||||
2.45%, 10/1/2022 | 30,000 | 30,299 | ||||||
101,057 | ||||||||
Banks – 27.6% | ||||||||
Australia & New Zealand Banking Group Ltd. | ||||||||
2.30%, 6/1/2021 | 250,000 | 248,701 | ||||||
Bank of America Corp. | ||||||||
3.30%, 1/11/2023 | 400,000 | 407,148 | ||||||
3.12%, 1/20/2023(a) | 250,000 | 252,886 | ||||||
4.20%, 8/26/2024 | 320,000 | 329,983 | ||||||
4.00%, 1/22/2025 | 255,000 | 257,719 | ||||||
Bank of Montreal | ||||||||
1.50%, 7/18/2019 | 120,000 | 118,966 | ||||||
Bank of Nova Scotia (The) | ||||||||
2.05%, 6/5/2019 | 180,000 | 180,669 | ||||||
Barclays Bank plc | ||||||||
5.14%, 10/14/2020 | 350,000 | 375,990 | ||||||
BB&T Corp. | ||||||||
2.45%, 1/15/2020 | 80,000 | 81,022 |
Principal Amount | Value | |||||||
Banks – (continued) | ||||||||
BNP Paribas SA | ||||||||
5.00%, 1/15/2021 | $ | 90,000 | $ | 97,841 | ||||
Citigroup, Inc. | ||||||||
2.65%, 10/26/2020 | 600,000 | 605,569 | ||||||
3.50%, 5/15/2023 | 250,000 | 254,005 | ||||||
3.30%, 4/27/2025 | 200,000 | 199,080 | ||||||
4.40%, 6/10/2025 | 120,000 | 123,672 | ||||||
3.20%, 10/21/2026 | 200,000 | 193,673 | ||||||
Citizens Financial Group, Inc. | ||||||||
4.30%, 12/3/2025 | 60,000 | 62,578 | ||||||
Credit Suisse Group Funding Guernsey Ltd. | ||||||||
3.80%, 9/15/2022 | 250,000 | 257,609 | ||||||
Discover Bank | ||||||||
3.10%, 6/4/2020 | 250,000 | 255,594 | ||||||
Fifth Third Bancorp | ||||||||
2.88%, 7/27/2020 | 120,000 | 122,428 | ||||||
3.50%, 3/15/2022 | 95,000 | 98,553 | ||||||
HSBC Holdings plc | ||||||||
4.00%, 3/30/2022 | 210,000 | 221,521 | ||||||
3.90%, 5/25/2026 | 200,000 | 205,578 | ||||||
ING Groep NV | ||||||||
3.15%, 3/29/2022 | 200,000 | 203,260 | ||||||
JPMorgan Chase & Co. | ||||||||
2.55%, 3/1/2021 | 300,000 | 301,582 | ||||||
3.38%, 5/1/2023 | 520,000 | 524,151 | ||||||
3.13%, 1/23/2025 | 230,000 | 227,817 | ||||||
3.90%, 7/15/2025 | 250,000 | 260,263 | ||||||
3.30%, 4/1/2026 | 220,000 | 217,644 | ||||||
2.95%, 10/1/2026 | 250,000 | 240,466 | ||||||
3.78%, 2/1/2028(a) | 75,000 | 76,371 | ||||||
KeyCorp | ||||||||
5.10%, 3/24/2021 | 100,000 | 109,599 | ||||||
Lloyds Bank plc | ||||||||
2.40%, 3/17/2020 | 200,000 | 201,259 | ||||||
6.38%, 1/21/2021 | 15,000 | 17,024 | ||||||
Mitsubishi UFJ Financial Group, Inc. | ||||||||
2.95%, 3/1/2021 | 400,000 | 406,031 | ||||||
Mizuho Financial Group, Inc. | ||||||||
2.95%, 2/28/2022 | 200,000 | 201,348 | ||||||
MUFG Americas Holdings Corp. | ||||||||
2.25%, 2/10/2020 | 100,000 | 100,149 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 249 |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Banks – (continued) | ||||||||
National Australia Bank Ltd. | ||||||||
2.63%, 7/23/2020 | $ | 250,000 | $ | 253,062 | ||||
PNC Financial Services Group, Inc. (The) | ||||||||
3.30%, 3/8/2022 | 380,000 | 395,132 | ||||||
3.90%, 4/29/2024 | 50,000 | 52,271 | ||||||
Royal Bank of Canada | ||||||||
2.35%, 10/30/2020 | 150,000 | 151,213 | ||||||
Skandinaviska Enskilda Banken AB | ||||||||
2.30%, 3/11/2020 | 250,000 | 251,136 | ||||||
Sumitomo Mitsui Financial Group, Inc. | ||||||||
2.06%, 7/14/2021 | 250,000 | 245,753 | ||||||
3.78%, 3/9/2026 | 250,000 | 259,088 | ||||||
Svenska Handelsbanken AB | ||||||||
2.45%, 3/30/2021 | 250,000 | 250,339 | ||||||
US Bancorp | ||||||||
2.95%, 7/15/2022 | 200,000 | 203,072 | ||||||
Wells Fargo & Co. | ||||||||
3.50%, 3/8/2022 | 200,000 | 208,778 | ||||||
4.48%, 1/16/2024 | 225,000 | 240,442 | ||||||
3.55%, 9/29/2025 | 200,000 | 203,295 | ||||||
Westpac Banking Corp. | ||||||||
2.60%, 11/23/2020 | 300,000 | 302,890 | ||||||
2.85%, 5/13/2026 | 150,000 | 146,173 | ||||||
11,200,393 | ||||||||
Beverages – 1.0% | ||||||||
Coca-Cola Co. (The) | ||||||||
1.88%, 10/27/2020 | 150,000 | 150,363 | ||||||
2.88%, 10/27/2025 | 50,000 | 50,142 | ||||||
Diageo Capital plc | ||||||||
2.63%, 4/29/2023 | 100,000 | 99,848 | ||||||
PepsiCo, Inc. | ||||||||
3.60%, 3/1/2024 | 100,000 | 105,469 | ||||||
405,822 | ||||||||
Biotechnology – 4.2% | ||||||||
AbbVie, Inc. | ||||||||
3.20%, 11/6/2022 | 240,000 | 244,891 | ||||||
2.90%, 11/6/2022 | 250,000 | 251,376 |
Principal Amount | Value | |||||||
Biotechnology – (continued) | ||||||||
Amgen, Inc. | ||||||||
2.20%, 5/22/2019 | $ | 100,000 | $ | 100,684 | ||||
2.70%, 5/1/2022 | 170,000 | 171,550 | ||||||
3.63%, 5/22/2024 | 100,000 | 103,637 | ||||||
Biogen, Inc. | ||||||||
3.63%, 9/15/2022 | 100,000 | 104,295 | ||||||
Celgene Corp. | ||||||||
2.25%, 5/15/2019 | 400,000 | 402,383 | ||||||
3.88%, 8/15/2025 | 75,000 | 77,827 | ||||||
Gilead Sciences, Inc. | ||||||||
3.50%, 2/1/2025 | 225,000 | 228,894 | ||||||
1,685,537 | ||||||||
Capital Markets – 11.7% | ||||||||
Bank of New York Mellon Corp. (The) | ||||||||
2.30%, 9/11/2019 | 160,000 | 161,575 | ||||||
Series 0012, 3.65%, 2/4/2024 | 300,000 | 314,751 | ||||||
BlackRock, Inc. | ||||||||
Series 2, 5.00%, 12/10/2019 | 90,000 | 97,336 | ||||||
Credit Suisse AG | ||||||||
5.30%, 8/13/2019 | 150,000 | 160,626 | ||||||
Deutsche Bank AG | ||||||||
3.70%, 5/30/2024 | 145,000 | 142,975 | ||||||
Goldman Sachs Group, Inc. (The) | ||||||||
5.38%, 3/15/2020 | 110,000 | 119,173 | ||||||
5.75%, 1/24/2022 | 150,000 | 169,410 | ||||||
3.00%, 4/26/2022 | 400,000 | 403,557 | ||||||
3.63%, 1/22/2023 | 500,000 | 517,196 | ||||||
4.00%, 3/3/2024 | 210,000 | 219,364 | ||||||
3.50%, 1/23/2025 | 255,000 | 256,547 | ||||||
Intercontinental Exchange, Inc. | ||||||||
2.75%, 12/1/2020 | 150,000 | 152,663 | ||||||
Jefferies Group LLC | ||||||||
6.88%, 4/15/2021 | 100,000 | 114,791 | ||||||
Morgan Stanley | ||||||||
5.75%, 1/25/2021 | 400,000 | 445,360 | ||||||
2.63%, 11/17/2021 | 400,000 | 399,387 | ||||||
3.75%, 2/25/2023 | 200,000 | 207,688 | ||||||
4.00%, 7/23/2025 | 100,000 | 103,816 | ||||||
3.88%, 1/27/2026 | 200,000 | 204,852 | ||||||
3.13%, 7/27/2026 | 145,000 | 140,187 |
See Accompanying Notes to the Financial Statements.
250 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
State Street Corp. | ||||||||
2.55%, 8/18/2020 | $ | 150,000 | $ | 152,303 | ||||
UBS AG | ||||||||
2.38%, 8/14/2019 | 250,000 | 251,949 | ||||||
4,735,506 | ||||||||
Chemicals – 1.4% | ||||||||
Dow Chemical Co. (The) | ||||||||
4.25%, 11/15/2020 | 265,000 | 281,337 | ||||||
EI du Pont de Nemours & Co. | ||||||||
4.25%, 4/1/2021 | 100,000 | 106,651 | ||||||
LYB International Finance BV | ||||||||
4.00%, 7/15/2023 | 130,000 | 136,954 | ||||||
Praxair, Inc. | ||||||||
4.50%, 8/15/2019 | 50,000 | 52,963 | ||||||
577,905 | ||||||||
Commercial Services & Supplies – 0.4% | ||||||||
Republic Services, Inc. | ||||||||
3.55%, 6/1/2022 | 100,000 | 104,444 | ||||||
Waste Management, Inc. | ||||||||
2.40%, 5/15/2023 | 25,000 | 24,665 | ||||||
3.13%, 3/1/2025 | 50,000 | 50,657 | ||||||
179,766 | ||||||||
Communications Equipment – 0.5% | ||||||||
Cisco Systems, Inc. | ||||||||
3.00%, 6/15/2022 | 30,000 | 30,969 | ||||||
3.50%, 6/15/2025 | 20,000 | 20,983 | ||||||
2.95%, 2/28/2026 | 100,000 | 100,344 | ||||||
2.50%, 9/20/2026 | 50,000 | 48,203 | ||||||
200,499 | ||||||||
Consumer Finance – 4.9% | ||||||||
AerCap Ireland Capital DAC | ||||||||
3.95%, 2/1/2022 | 200,000 | 207,309 | ||||||
American Express Co. | ||||||||
3.63%, 12/5/2024 | 140,000 | 143,224 | ||||||
American Express Credit Corp. | ||||||||
Series F, 2.60%, 9/14/2020 | 195,000 | 197,666 | ||||||
Capital One Financial Corp. | ||||||||
3.50%, 6/15/2023 | 200,000 | 203,203 | ||||||
3.75%, 7/28/2026 | 150,000 | 145,029 |
Principal Amount | Value | |||||||
Consumer Finance – (continued) | ||||||||
Discover Financial Services | ||||||||
3.75%, 3/4/2025 | $ | 40,000 | $ | 39,708 | ||||
General Motors Financial Co., Inc. | ||||||||
4.38%, 9/25/2021 | 400,000 | 421,707 | ||||||
HSBC Finance Corp. | ||||||||
6.68%, 1/15/2021 | 50,000 | 56,852 | ||||||
HSBC USA, Inc. | ||||||||
2.75%, 8/7/2020 | 300,000 | 304,360 | ||||||
Synchrony Financial | ||||||||
3.00%, 8/15/2019 | 100,000 | 101,547 | ||||||
Toyota Motor Credit Corp. | ||||||||
4.50%, 6/17/2020 | 170,000 | 182,770 | ||||||
2,003,375 | ||||||||
Diversified Financial Services – 0.8% | ||||||||
Berkshire Hathaway, Inc. | ||||||||
2.20%, 3/15/2021 | 65,000 | 65,497 | ||||||
3.13%, 3/15/2026 | 75,000 | 75,727 | ||||||
GE Capital International Funding Co. Unlimited Co. | ||||||||
2.34%, 11/15/2020 | 200,000 | 201,412 | ||||||
342,636 | ||||||||
Diversified Telecommunication Services – 2.5% | ||||||||
AT&T, Inc. | ||||||||
2.45%, 6/30/2020 | 250,000 | 250,554 | ||||||
2.80%, 2/17/2021 | 250,000 | 252,186 | ||||||
Orange SA | ||||||||
4.13%, 9/14/2021 | 100,000 | 106,270 | ||||||
Verizon Communications, Inc. | ||||||||
3.00%, 11/1/2021 | 250,000 | 253,241 | ||||||
2.95%, 3/15/2022(b) | 158,000 | 159,010 | ||||||
1,021,261 | ||||||||
Electric Utilities – 2.2% | ||||||||
Duke Energy Carolinas LLC | ||||||||
3.90%, 6/15/2021 | 60,000 | 63,698 | ||||||
2.50%, 3/15/2023 | 50,000 | 49,847 | ||||||
2.95%, 12/1/2026 | 100,000 | 99,520 | ||||||
Exelon Corp. | ||||||||
2.85%, 6/15/2020 | 180,000 | 183,287 | ||||||
MidAmerican Energy Co. | ||||||||
3.50%, 10/15/2024 | 50,000 | 52,432 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 251 |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
Pacific Gas & Electric Co. | ||||||||
2.95%, 3/1/2026 | $ | 100,000 | $ | 99,035 | ||||
Public Service Electric & Gas Co. | ||||||||
2.38%, 5/15/2023 | 30,000 | 29,749 | ||||||
Southern Co. (The) | ||||||||
3.25%, 7/1/2026 | 150,000 | 146,286 | ||||||
Virginia Electric & Power Co. | ||||||||
Series A, 3.15%, 1/15/2026 | 50,000 | 50,317 | ||||||
Xcel Energy, Inc. | ||||||||
3.35%, 12/1/2026 | 100,000 | 101,090 | ||||||
875,261 | ||||||||
Energy Equipment & Services – 0.1% | ||||||||
Halliburton Co. | ||||||||
3.25%, 11/15/2021 | 40,000 | 41,222 | ||||||
Equity Real Estate Investment Trusts (REITs) – 2.9% | ||||||||
American Tower Corp. | ||||||||
3.50%, 1/31/2023 | 200,000 | 203,709 | ||||||
Boston Properties LP | ||||||||
5.63%, 11/15/2020 | 120,000 | 132,253 | ||||||
3.65%, 2/1/2026 | 50,000 | 50,307 | ||||||
ERP Operating LP | ||||||||
3.00%, 4/15/2023 | 100,000 | 99,773 | ||||||
HCP, Inc. | ||||||||
2.63%, 2/1/2020 | 145,000 | 146,041 | ||||||
Realty Income Corp. | ||||||||
4.65%, 8/1/2023 | 100,000 | 108,469 | ||||||
Simon Property Group LP | ||||||||
4.38%, 3/1/2021 | 100,000 | 106,898 | ||||||
3.75%, 2/1/2024 | 120,000 | 125,411 | ||||||
Ventas Realty LP | ||||||||
3.50%, 2/1/2025 | 50,000 | 49,555 | ||||||
Welltower, Inc. | ||||||||
3.75%, 3/15/2023 | 30,000 | 30,943 | ||||||
4.25%, 4/1/2026 | 100,000 | 104,327 | ||||||
1,157,686 | ||||||||
Food & Staples Retailing – 2.8% | ||||||||
CVS Health Corp. | ||||||||
2.80%, 7/20/2020 | 200,000 | 203,923 | ||||||
2.13%, 6/1/2021 | 150,000 | 148,158 | ||||||
4.00%, 12/5/2023 | 175,000 | 185,237 | ||||||
3.88%, 7/20/2025 | 100,000 | 104,203 |
Principal Amount | Value | |||||||
Food & Staples Retailing – (continued) | ||||||||
Sysco Corp. | ||||||||
2.60%, 10/1/2020 | $ | 150,000 | $ | 151,574 | ||||
Walgreens Boots Alliance, Inc. | ||||||||
3.30%, 11/18/2021 | 50,000 | 51,533 | ||||||
3.80%, 11/18/2024 | 70,000 | 72,036 | ||||||
3.45%, 6/1/2026 | 100,000 | 98,552 | ||||||
Wal-Mart Stores, Inc. | ||||||||
4.25%, 4/15/2021 | 90,000 | 97,848 | ||||||
1,113,064 | ||||||||
Food Products – 0.7% | ||||||||
Kraft Heinz Foods Co. | ||||||||
3.50%, 7/15/2022 | 200,000 | 206,565 | ||||||
Tyson Foods, Inc. | ||||||||
4.50%, 6/15/2022 | 74,000 | 79,226 | ||||||
285,791 | ||||||||
Health Care Equipment & Supplies – 1.9% | ||||||||
Abbott Laboratories | ||||||||
2.35%, 11/22/2019 | 60,000 | 60,362 | ||||||
2.55%, 3/15/2022 | 390,000 | 386,289 | ||||||
Becton Dickinson and Co. | ||||||||
3.13%, 11/8/2021 | 50,000 | 50,335 | ||||||
Medtronic Global Holdings SCA | ||||||||
3.35%, 4/1/2027 | 100,000 | 101,953 | ||||||
Medtronic, Inc. | ||||||||
2.75%, 4/1/2023 | 50,000 | 50,173 | ||||||
Stryker Corp. | ||||||||
3.50%, 3/15/2026 | 115,000 | 117,343 | ||||||
766,455 | ||||||||
Health Care Providers & Services – 2.2% | ||||||||
Aetna, Inc. | ||||||||
2.75%, 11/15/2022 | 50,000 | 50,306 | ||||||
Anthem, Inc. | ||||||||
2.25%, 8/15/2019 | 100,000 | 100,454 | ||||||
Express Scripts Holding Co. | ||||||||
2.25%, 6/15/2019 | 30,000 | 30,107 | ||||||
3.90%, 2/15/2022 | 150,000 | 156,360 | ||||||
3.50%, 6/15/2024 | 100,000 | 99,273 | ||||||
McKesson Corp. | ||||||||
3.80%, 3/15/2024 | 50,000 | 52,059 |
See Accompanying Notes to the Financial Statements.
252 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
UnitedHealth Group, Inc. | ||||||||
2.70%, 7/15/2020 | $ | 300,000 | $ | 306,901 | ||||
3.10%, 3/15/2026 | 100,000 | 100,071 | ||||||
895,531 | ||||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||
Marriott International, Inc. | ||||||||
2.30%, 1/15/2022 | 80,000 | 79,011 | ||||||
McDonald’s Corp. | ||||||||
2.75%, 12/9/2020 | 30,000 | 30,566 | ||||||
2.63%, 1/15/2022 | 15,000 | 15,093 | ||||||
3.38%, 5/26/2025 | 125,000 | 127,475 | ||||||
252,145 | ||||||||
Household Products – 0.1% | ||||||||
Procter & Gamble Co. (The) | ||||||||
3.10%, 8/15/2023 | 50,000 | 51,910 | ||||||
Independent Power and Renewable Electricity Producers – 0.2% | ||||||||
Southern Power Co. | ||||||||
Series D, 1.95%, 12/15/2019 | 100,000 | 99,545 | ||||||
Industrial Conglomerates – 0.7% | ||||||||
General Electric Co. | ||||||||
2.20%, 1/9/2020 | 120,000 | 121,553 | ||||||
Honeywell International, Inc. | ||||||||
1.85%, 11/1/2021 | 80,000 | 78,793 | ||||||
Roper Technologies, Inc. | ||||||||
3.80%, 12/15/2026 | 100,000 | 102,071 | ||||||
302,417 | ||||||||
Insurance – 2.3% | ||||||||
Aflac, Inc. | ||||||||
3.63%, 6/15/2023 | 100,000 | 104,994 | ||||||
American International Group, Inc. | ||||||||
3.38%, 8/15/2020 | 190,000 | 195,787 | ||||||
Aon plc | ||||||||
3.50%, 6/14/2024 | 100,000 | 101,128 | ||||||
Berkshire Hathaway Finance Corp. | ||||||||
2.90%, 10/15/2020 | 50,000 | 51,728 | ||||||
Chubb INA Holdings, Inc. | ||||||||
3.15%, 3/15/2025 | 170,000 | 172,177 |
Principal Amount | Value | |||||||
Insurance – (continued) | ||||||||
Marsh & McLennan Cos., Inc. | ||||||||
3.50%, 3/10/2025 | $ | 30,000 | $ | 30,758 | ||||
3.75%, 3/14/2026 | 20,000 | 20,760 | ||||||
MetLife, Inc. | ||||||||
3.60%, 4/10/2024 | 80,000 | 83,457 | ||||||
Prudential Financial, Inc. | ||||||||
4.50%, 11/15/2020 | 60,000 | 64,715 | ||||||
3.50%, 5/15/2024 | 100,000 | 103,933 | ||||||
5.20%, 3/15/2044(a) | 10,000 | 10,412 | ||||||
939,849 | ||||||||
Internet Software & Services – 1.4% | ||||||||
Alibaba Group Holding Ltd. | ||||||||
2.50%, 11/28/2019 | 200,000 | 201,161 | ||||||
Baidu, Inc. | ||||||||
3.00%, 6/30/2020 | 200,000 | 202,854 | ||||||
eBay, Inc. | ||||||||
2.20%, 8/1/2019 | 40,000 | 40,180 | ||||||
3.45%, 8/1/2024 | 120,000 | 121,122 | ||||||
565,317 | ||||||||
IT Services – 2.2% | ||||||||
Fidelity National Information Services, Inc. | ||||||||
3.63%, 10/15/2020 | 95,000 | 99,095 | ||||||
3.00%, 8/15/2026 | 100,000 | 96,007 | ||||||
Fiserv, Inc. | ||||||||
3.50%, 10/1/2022 | 80,000 | 82,666 | ||||||
International Business Machines Corp. | ||||||||
8.38%, 11/1/2019 | 10,000 | 11,603 | ||||||
1.63%, 5/15/2020 | 100,000 | 99,398 | ||||||
3.63%, 2/12/2024 | 100,000 | 105,303 | ||||||
3.45%, 2/19/2026 | 100,000 | 102,688 | ||||||
Visa, Inc. | ||||||||
2.80%, 12/14/2022 | 300,000 | 305,707 | ||||||
902,467 | ||||||||
Machinery – 0.1% | ||||||||
Illinois Tool Works, Inc. | ||||||||
2.65%, 11/15/2026 | 50,000 | 48,875 | ||||||
Media – 3.1% | ||||||||
21st Century Fox America, Inc. | ||||||||
4.50%, 2/15/2021 | 100,000 | 107,488 | ||||||
3.70%, 10/15/2025 | 50,000 | 51,334 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 253 |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Media – (continued) | ||||||||
CBS Corp. | ||||||||
3.70%, 8/15/2024 | $ | 80,000 | $ | 82,015 | ||||
Comcast Corp. | ||||||||
3.60%, 3/1/2024 | 100,000 | 104,448 | ||||||
3.15%, 3/1/2026 | 200,000 | 198,991 | ||||||
Discovery Communications LLC | ||||||||
3.30%, 5/15/2022 | 40,000 | 40,338 | ||||||
4.90%, 3/11/2026 | 100,000 | 105,159 | ||||||
Omnicom Group, Inc. | ||||||||
4.45%, 8/15/2020 | 170,000 | 181,589 | ||||||
Time Warner, Inc. | ||||||||
4.70%, 1/15/2021 | 80,000 | 86,100 | ||||||
3.55%, 6/1/2024 | 80,000 | 80,666 | ||||||
3.88%, 1/15/2026 | 150,000 | 151,664 | ||||||
Walt Disney Co. (The) | ||||||||
3.00%, 2/13/2026 | 60,000 | 60,310 | ||||||
1,250,102 | ||||||||
Metals & Mining – 0.4% | ||||||||
Rio Tinto Finance USA Ltd. | ||||||||
9.00%, 5/1/2019 | 52,000 | 59,135 | ||||||
3.75%, 6/15/2025 | 75,000 | 78,198 | ||||||
Rio Tinto Finance USA plc | ||||||||
3.50%, 3/22/2022 | 20,000 | 20,868 | ||||||
158,201 | ||||||||
Multiline Retail – 0.1% | ||||||||
Target Corp. | ||||||||
2.50%, 4/15/2026 | 40,000 | 38,176 | ||||||
Multi-Utilities – 0.8% | ||||||||
CMS Energy Corp. | ||||||||
3.00%, 5/15/2026 | 15,000 | 14,643 | ||||||
Dominion Resources, Inc. | ||||||||
2.50%, 12/1/2019 | 150,000 | 151,598 | ||||||
4.45%, 3/15/2021 | 60,000 | 64,597 | ||||||
Sempra Energy | ||||||||
3.55%, 6/15/2024 | 80,000 | 81,989 | ||||||
312,827 | ||||||||
Oil, Gas & Consumable Fuels – 4.2% | ||||||||
BP Capital Markets plc | ||||||||
4.50%, 10/1/2020 | 200,000 | 215,230 |
Principal Amount | Value | |||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Energy Transfer Partners LP | ||||||||
4.65%, 6/1/2021 | $ | 250,000 | $ | 264,971 | ||||
Enterprise Products Operating LLC | ||||||||
3.35%, 3/15/2023 | 180,000 | 184,554 | ||||||
3.75%, 2/15/2025 | 100,000 | 102,568 | ||||||
EOG Resources, Inc. | ||||||||
2.45%, 4/1/2020 | 75,000 | 75,619 | ||||||
Exxon Mobil Corp. | ||||||||
2.73%, 3/1/2023 | 160,000 | 161,737 | ||||||
Kinder Morgan Energy Partners LP | ||||||||
3.95%, 9/1/2022 | 150,000 | 154,909 | ||||||
Occidental Petroleum Corp. | ||||||||
2.70%, 2/15/2023 | 80,000 | 79,816 | ||||||
ONEOK Partners LP | ||||||||
3.38%, 10/1/2022 | 40,000 | 40,387 | ||||||
Total Capital Canada Ltd. | ||||||||
2.75%, 7/15/2023 | 130,000 | 130,602 | ||||||
Total Capital International SA | ||||||||
3.75%, 4/10/2024 | 80,000 | 84,090 | ||||||
TransCanada PipeLines Ltd. | ||||||||
3.80%, 10/1/2020 | 50,000 | 52,593 | ||||||
3.75%, 10/16/2023 | 40,000 | 41,905 | ||||||
Williams Partners LP | ||||||||
4.13%, 11/15/2020 | 100,000 | 104,811 | ||||||
1,693,792 | ||||||||
Pharmaceuticals – 2.7% | ||||||||
Actavis Funding SCS | ||||||||
3.80%, 3/15/2025 | 250,000 | 254,860 | ||||||
GlaxoSmithKline Capital, Inc. | ||||||||
2.80%, 3/18/2023 | 150,000 | 151,086 | ||||||
Johnson & Johnson | ||||||||
2.05%, 3/1/2023 | 50,000 | 49,352 | ||||||
Merck & Co., Inc. | ||||||||
1.85%, 2/10/2020 | 60,000 | 60,345 | ||||||
2.75%, 2/10/2025 | 65,000 | 64,932 | ||||||
Novartis Capital Corp. | ||||||||
3.40%, 5/6/2024 | 100,000 | 104,273 | ||||||
Pfizer, Inc. | ||||||||
1.95%, 6/3/2021 | 150,000 | 149,967 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | ||||||||
2.80%, 7/21/2023 | 200,000 | 192,853 |
See Accompanying Notes to the Financial Statements.
254 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Wyeth LLC | ||||||||
6.45%, 2/1/2024 | $ | 40,000 | $ | 48,954 | ||||
1,076,622 | ||||||||
Road & Rail – 0.9% | ||||||||
Burlington Northern Santa Fe LLC | ||||||||
3.05%, 3/15/2022 | 100,000 | 103,247 | ||||||
CSX Corp. | ||||||||
3.70%, 10/30/2020 | 70,000 | 73,341 | ||||||
Norfolk Southern Corp. | ||||||||
3.00%, 4/1/2022 | 80,000 | 81,850 | ||||||
Union Pacific Corp. | ||||||||
3.25%, 8/15/2025 | 100,000 | 102,681 | ||||||
361,119 | ||||||||
Semiconductors & Semiconductor Equipment – 1.2% | ||||||||
Analog Devices, Inc. | ||||||||
3.50%, 12/5/2026 | 100,000 | 100,437 | ||||||
Intel Corp. | ||||||||
3.70%, 7/29/2025 | 100,000 | 105,336 | ||||||
QUALCOMM, Inc. | ||||||||
2.25%, 5/20/2020 | 270,000 | 271,826 | ||||||
477,599 | ||||||||
Software – 2.5% | ||||||||
Microsoft Corp. | ||||||||
2.70%, 2/12/2025 | 140,000 | 139,393 | ||||||
2.40%, 8/8/2026 | 200,000 | 191,847 | ||||||
3.30%, 2/6/2027 | 150,000 | 154,307 | ||||||
Oracle Corp. | ||||||||
1.90%, 9/15/2021 | 100,000 | 99,044 | ||||||
2.50%, 5/15/2022 | 250,000 | 251,526 | ||||||
2.65%, 7/15/2026 | 200,000 | 193,291 | ||||||
1,029,408 | ||||||||
Specialty Retail – 0.5% | ||||||||
Home Depot, Inc. (The) | ||||||||
2.63%, 6/1/2022 | 100,000 | 101,751 | ||||||
Lowe’s Cos., Inc. | ||||||||
3.38%, 9/15/2025 | 100,000 | 102,719 | ||||||
204,470 |
Principal Amount | Value | |||||||
Technology Hardware, Storage & Peripherals – 2.5% | ||||||||
Apple, Inc. | ||||||||
2.25%, 2/23/2021 | $ | 125,000 | $ | 126,307 | ||||
2.40%, 5/3/2023 | 230,000 | 228,803 | ||||||
3.25%, 2/23/2026 | 150,000 | 153,353 | ||||||
2.45%, 8/4/2026 | 100,000 | 95,858 | ||||||
3.35%, 2/9/2027 | 150,000 | 153,606 | ||||||
Hewlett Packard Enterprise Co. | ||||||||
4.90%, 10/15/2025 | 95,000 | 99,990 | ||||||
HP, Inc. | ||||||||
4.38%, 9/15/2021 | 25,000 | 26,631 | ||||||
4.05%, 9/15/2022 | 125,000 | 131,641 | ||||||
1,016,189 | ||||||||
Tobacco – 1.6% | ||||||||
Altria Group, Inc. | ||||||||
2.85%, 8/9/2022 | 160,000 | 161,779 | ||||||
4.00%, 1/31/2024 | 55,000 | 58,396 | ||||||
Philip Morris International, Inc. | ||||||||
3.60%, 11/15/2023 | 95,000 | 99,310 | ||||||
2.75%, 2/25/2026 | 100,000 | 97,426 | ||||||
Reynolds American, Inc. | ||||||||
3.25%, 6/12/2020 | 54,000 | 55,688 | ||||||
4.00%, 6/12/2022 | 150,000 | 158,932 | ||||||
631,531 | ||||||||
Trading Companies & Distributors – 0.3% | ||||||||
Air Lease Corp. | ||||||||
2.13%, 1/15/2020 | 120,000 | 119,318 | ||||||
Wireless Telecommunication Services – 0.4% | ||||||||
America Movil SAB de CV | ||||||||
5.00%, 10/16/2019 | 100,000 | 106,866 | ||||||
Vodafone Group plc | ||||||||
5.45%, 6/10/2019 | 40,000 | 42,783 | ||||||
149,649 | ||||||||
Total Corporate Bonds (Cost $39,769,253) | 39,831,403 | |||||||
Total Investments – 98.3% (Cost $39,769,253) | 39,831,403 | |||||||
Other Assets Less Liabilities – 1.7% |
| 682,228 | ||||||
NET ASSETS – 100.0% | $ | 40,513,631 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 255 |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
(a) | Variable or floating rate security. The interest rate shown was the current rate as of 4/30/2017 and changes periodically. |
(b) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
Percentages shown are based on Net Assets
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 235,256 | ||
Aggregate gross unrealized depreciation | (173,203 | ) | ||
Net unrealized appreciation | $ | 62,053 | ||
Federal income tax cost of investments | $ | 39,769,350 |
See Accompanying Notes to the Financial Statements.
256 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Credit-Scored US Long Corporate Bond Index Fund
April 30, 2017 (Unaudited)
Principal Amount | Value | |||||||
CORPORATE BONDS – 96.9% | ||||||||
Aerospace & Defense – 2.2% | ||||||||
Lockheed Martin Corp. | ||||||||
3.60%, 3/1/2035 | $ | 75,000 | $ | 72,845 | ||||
4.70%, 5/15/2046 | 50,000 | 55,165 | ||||||
Raytheon Co. | ||||||||
4.88%, 10/15/2040 | 15,000 | 17,186 | ||||||
United Technologies Corp. | ||||||||
5.70%, 4/15/2040 | 65,000 | 80,125 | ||||||
225,321 | ||||||||
Air Freight & Logistics – 1.2% | ||||||||
FedEx Corp. | ||||||||
3.90%, 2/1/2035 | 75,000 | 73,108 | ||||||
4.75%, 11/15/2045 | 50,000 | 52,230 | ||||||
125,338 | ||||||||
Automobiles – 0.5% | ||||||||
General Motors Co. | ||||||||
5.00%, 4/1/2035 | 50,000 | 49,617 | ||||||
Banks – 9.1% | ||||||||
Bank of America Corp. | ||||||||
5.00%, 1/21/2044 | 70,000 | 77,092 | ||||||
Series L, 4.75%, 4/21/2045 | 30,000 | 30,722 | ||||||
4.44%, 1/20/2048(a) | 75,000 | 76,693 | ||||||
Citigroup, Inc. | ||||||||
8.13%, 7/15/2039 | 17,000 | 25,092 | ||||||
5.88%, 1/30/2042 | 30,000 | 36,798 | ||||||
5.30%, 5/6/2044 | 105,000 | 113,986 | ||||||
4.65%, 7/30/2045 | 75,000 | 78,507 | ||||||
Fifth Third Bancorp | ||||||||
8.25%, 3/1/2038 | 20,000 | 28,735 | ||||||
HSBC Holdings plc | ||||||||
6.10%, 1/14/2042 | 70,000 | 89,148 | ||||||
JPMorgan Chase & Co. | ||||||||
5.40%, 1/6/2042 | 60,000 | 70,507 | ||||||
4.95%, 6/1/2045 | 160,000 | 170,698 | ||||||
Wells Fargo & Co. | ||||||||
5.38%, 11/2/2043 | 130,000 | 144,400 | ||||||
942,378 |
Principal Amount | Value | |||||||
Beverages – 0.4% | ||||||||
PepsiCo, Inc. | ||||||||
4.45%, 4/14/2046 | $ | 35,000 | $ | 37,643 | ||||
Biotechnology – 5.3% | ||||||||
AbbVie, Inc. | ||||||||
4.50%, 5/14/2035 | 185,000 | 186,490 | ||||||
Amgen, Inc. | ||||||||
5.15%, 11/15/2041 | 50,000 | 54,936 | ||||||
Biogen, Inc. | ||||||||
5.20%, 9/15/2045 | 30,000 | 32,671 | ||||||
Celgene Corp. | ||||||||
5.00%, 8/15/2045 | 50,000 | 53,571 | ||||||
Gilead Sciences, Inc. | ||||||||
4.60%, 9/1/2035 | 80,000 | 83,196 | ||||||
4.75%, 3/1/2046 | 60,000 | 62,022 | ||||||
4.15%, 3/1/2047 | 80,000 | 75,749 | ||||||
548,635 | ||||||||
Capital Markets – 6.6% | ||||||||
CME Group, Inc. | ||||||||
5.30%, 9/15/2043 | 20,000 | 24,387 | ||||||
Credit Suisse USA, Inc. | ||||||||
7.13%, 7/15/2032 | 20,000 | 27,427 | ||||||
Goldman Sachs Group, Inc. (The) | ||||||||
6.13%, 2/15/2033 | 190,000 | 232,844 | ||||||
6.75%, 10/1/2037 | 90,000 | 112,563 | ||||||
6.25%, 2/1/2041 | 70,000 | 88,624 | ||||||
5.15%, 5/22/2045 | 50,000 | 53,022 | ||||||
Morgan Stanley | ||||||||
4.35%, 9/8/2026 | 30,000 | 31,086 | ||||||
6.38%, 7/24/2042 | 30,000 | 38,993 | ||||||
4.30%, 1/27/2045 | 75,000 | 75,270 | ||||||
684,216 | ||||||||
Chemicals – 2.3% | ||||||||
Dow Chemical Co. (The) | ||||||||
7.38%, 11/1/2029 | 20,000 | 27,239 | ||||||
4.38%, 11/15/2042 | 25,000 | 25,207 | ||||||
Ecolab, Inc. | ||||||||
5.50%, 12/8/2041 | 15,000 | 18,008 | ||||||
EI du Pont de Nemours & Co. | ||||||||
4.90%, 1/15/2041 | 30,000 | 32,908 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 257 |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
LYB International Finance BV | ||||||||
4.88%, 3/15/2044 | $ | 60,000 | $ | 62,353 | ||||
Monsanto Co. | ||||||||
4.20%, 7/15/2034 | 20,000 | 19,908 | ||||||
4.40%, 7/15/2044 | 40,000 | 39,262 | ||||||
Praxair, Inc. | ||||||||
3.55%, 11/7/2042 | 10,000 | 9,616 | ||||||
234,501 | ||||||||
Communications Equipment – 0.6% | ||||||||
Cisco Systems, Inc. | ||||||||
5.90%, 2/15/2039 | 45,000 | 58,155 | ||||||
Diversified Telecommunication Services – 7.2% | ||||||||
AT&T, Inc. | ||||||||
5.25%, 3/1/2037 | 125,000 | 128,591 | ||||||
British Telecommunications plc | ||||||||
9.12%, 12/15/2030 | 50,000 | 75,686 | ||||||
Deutsche Telekom International Finance BV | ||||||||
8.75%, 6/15/2030 | 30,000 | 44,423 | ||||||
Orange SA | ||||||||
9.00%, 3/1/2031(b) | 85,000 | 127,256 | ||||||
Verizon Communications, Inc. | ||||||||
4.52%, 9/15/2048 | 175,000 | 161,626 | ||||||
5.01%, 4/15/2049(c) | 85,000 | 83,745 | ||||||
4.67%, 3/15/2055 | 135,000 | 123,766 | ||||||
745,093 | ||||||||
Electric Utilities – 3.2% | ||||||||
Duke Energy Corp. | ||||||||
4.80%, 12/15/2045 | 50,000 | 53,388 | ||||||
3.75%, 9/1/2046 | 60,000 | 55,195 | ||||||
Pacific Gas & Electric Co. | ||||||||
6.05%, 3/1/2034 | 50,000 | 63,003 | ||||||
Progress Energy, Inc. | ||||||||
7.75%, 3/1/2031 | 20,000 | 28,144 | ||||||
South Carolina Electric & Gas Co. | ||||||||
4.35%, 2/1/2042 | 20,000 | 19,547 | ||||||
Southern California Edison Co. | ||||||||
4.65%, 10/1/2043 | 30,000 | 33,474 | ||||||
Southern Co. (The) | ||||||||
4.40%, 7/1/2046 | 80,000 | 79,913 | ||||||
332,664 |
Principal Amount | Value | |||||||
Energy Equipment & Services – 0.4% | ||||||||
Baker Hughes, Inc. | ||||||||
5.13%, 9/15/2040 | $ | 35,000 | $ | 39,393 | ||||
Equity Real Estate Investment Trusts (REITs) – 0.5% | ||||||||
ERP Operating LP | ||||||||
4.50%, 7/1/2044 | 25,000 | 25,853 | ||||||
Simon Property Group LP | ||||||||
4.75%, 3/15/2042 | 25,000 | 26,102 | ||||||
51,955 | ||||||||
Food & Staples Retailing – 3.7% | ||||||||
CVS Health Corp. | ||||||||
5.13%, 7/20/2045 | 120,000 | 134,627 | ||||||
Sysco Corp. | ||||||||
4.85%, 10/1/2045 | 20,000 | 21,450 | ||||||
Walgreen Co. | ||||||||
4.40%, 9/15/2042 | 50,000 | 48,838 | ||||||
Wal-Mart Stores, Inc. | ||||||||
5.25%, 9/1/2035 | 85,000 | 102,190 | ||||||
6.50%, 8/15/2037 | 30,000 | 40,552 | ||||||
6.20%, 4/15/2038 | 25,000 | 32,810 | ||||||
380,467 | ||||||||
Food Products – 0.8% | ||||||||
General Mills, Inc. | ||||||||
5.40%, 6/15/2040 | 10,000 | 11,545 | ||||||
Mead Johnson Nutrition Co. | ||||||||
4.60%, 6/1/2044 | 25,000 | 26,462 | ||||||
Tyson Foods, Inc. | ||||||||
5.15%, 8/15/2044 | 20,000 | 21,445 | ||||||
Unilever Capital Corp. | ||||||||
5.90%, 11/15/2032 | 15,000 | 19,660 | ||||||
79,112 | ||||||||
Health Care Equipment & Supplies – 2.2% | ||||||||
Abbott Laboratories | ||||||||
4.75%, 11/30/2036 | 120,000 | 124,670 | ||||||
Medtronic, Inc. | ||||||||
4.38%, 3/15/2035 | 70,000 | 74,217 | ||||||
Stryker Corp. | ||||||||
4.63%, 3/15/2046 | 30,000 | 31,503 | ||||||
230,390 |
See Accompanying Notes to the Financial Statements.
258 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Health Care Providers & Services – 2.2% | ||||||||
Aetna, Inc. | ||||||||
6.75%, 12/15/2037 | $ | 30,000 | $ | 40,654 | ||||
Anthem, Inc. | ||||||||
4.65%, 1/15/2043 | 80,000 | 82,927 | ||||||
Express Scripts Holding Co. | ||||||||
4.80%, 7/15/2046 | 30,000 | 29,275 | ||||||
McKesson Corp. | ||||||||
4.88%, 3/15/2044 | 20,000 | 20,935 | ||||||
UnitedHealth Group, Inc. | ||||||||
4.63%, 7/15/2035 | 50,000 | 54,994 | ||||||
228,785 | ||||||||
Hotels, Restaurants & Leisure – 1.2% | ||||||||
McDonald’s Corp. | ||||||||
6.30%, 3/1/2038 | 40,000 | 51,205 | ||||||
3.70%, 2/15/2042 | 50,000 | 45,449 | ||||||
4.88%, 12/9/2045 | 25,000 | 27,033 | ||||||
123,687 | ||||||||
Household Products – 0.2% | ||||||||
Kimberly-Clark Corp. | ||||||||
3.20%, 7/30/2046 | 25,000 | 22,299 | ||||||
Industrial Conglomerates – 1.6% | ||||||||
3M Co. | ||||||||
5.70%, 3/15/2037 | 10,000 | 12,612 | ||||||
General Electric Co. | ||||||||
6.75%, 3/15/2032 | 15,000 | 20,567 | ||||||
4.50%, 3/11/2044 | 50,000 | 54,718 | ||||||
Honeywell International, Inc. | ||||||||
5.70%, 3/15/2037 | 20,000 | 25,339 | ||||||
Ingersoll-Rand Global Holding Co. Ltd. | ||||||||
5.75%, 6/15/2043 | 15,000 | 18,133 | ||||||
Koninklijke Philips NV | ||||||||
5.00%, 3/15/2042 | 30,000 | 32,109 | ||||||
163,478 | ||||||||
Insurance – 3.2% | ||||||||
Allstate Corp. (The) | ||||||||
5.55%, 5/9/2035 | 20,000 | 24,229 | ||||||
American International Group, Inc. | ||||||||
3.88%, 1/15/2035 | 60,000 | 56,115 | ||||||
4.50%, 7/16/2044 | 30,000 | 29,466 |
Principal Amount | Value | |||||||
Insurance – (continued) | ||||||||
Aon plc | ||||||||
4.75%, 5/15/2045 | $ | 50,000 | $ | 50,906 | ||||
Chubb Corp. (The) | ||||||||
6.00%, 5/11/2037 | 20,000 | 25,581 | ||||||
Chubb INA Holdings, Inc. | ||||||||
3.35%, 5/3/2026 | 20,000 | 20,477 | ||||||
MetLife, Inc. | ||||||||
6.40%, 12/15/2036 | 50,000 | 56,375 | ||||||
Prudential Financial, Inc. | ||||||||
5.70%, 12/14/2036 | 40,000 | 48,038 | ||||||
Travelers Cos., Inc. (The) | ||||||||
4.60%, 8/1/2043 | 15,000 | 16,538 | ||||||
327,725 | ||||||||
Internet Software & Services – 0.3% | ||||||||
eBay, Inc. | ||||||||
4.00%, 7/15/2042 | 30,000 | 25,865 | ||||||
IT Services – 0.3% | ||||||||
Visa, Inc. | ||||||||
4.30%, 12/14/2045 | 30,000 | 32,189 | ||||||
Machinery – 0.2% | ||||||||
Illinois Tool Works, Inc. | ||||||||
3.90%, 9/1/2042 | 20,000 | 20,429 | ||||||
Media – 7.2% | ||||||||
21st Century Fox America, Inc. | ||||||||
6.20%, 12/15/2034 | 55,000 | 66,677 | ||||||
4.75%, 9/15/2044 | 90,000 | 91,955 | ||||||
CBS Corp. | ||||||||
4.60%, 1/15/2045 | 50,000 | 50,088 | ||||||
Comcast Corp. | ||||||||
6.45%, 3/15/2037 | 60,000 | 77,400 | ||||||
4.60%, 8/15/2045 | 125,000 | 130,717 | ||||||
3.40%, 7/15/2046 | 120,000 | 104,315 | ||||||
Discovery Communications LLC | ||||||||
4.88%, 4/1/2043 | 35,000 | 32,063 | ||||||
Time Warner, Inc. | ||||||||
6.10%, 7/15/2040 | 75,000 | 85,210 | ||||||
4.85%, 7/15/2045 | 60,000 | 58,296 | ||||||
Walt Disney Co. (The) | ||||||||
4.13%, 6/1/2044 | 40,000 | 41,122 | ||||||
737,843 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 259 |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Metals & Mining – 0.6% | ||||||||
BHP Billiton Finance USA Ltd. | ||||||||
4.13%, 2/24/2042 | $ | 60,000 | $ | 60,678 | ||||
Multiline Retail – 0.5% | ||||||||
Target Corp. | ||||||||
4.00%, 7/1/2042 | 50,000 | 49,037 | ||||||
Multi-Utilities – 3.1% | ||||||||
Berkshire Hathaway Energy Co. | ||||||||
6.13%, 4/1/2036 | 25,000 | 31,397 | ||||||
4.50%, 2/1/2045 | 80,000 | 84,711 | ||||||
Consolidated Edison Co. of New York, Inc. | ||||||||
4.63%, 12/1/2054 | 26,000 | 27,954 | ||||||
Series C, 4.30%, 12/1/2056 | 30,000 | 30,603 | ||||||
Dominion Resources, Inc. | ||||||||
Series B, 5.95%, 6/15/2035 | 95,000 | 113,418 | ||||||
Southern Co. Gas Capital Corp. | ||||||||
5.88%, 3/15/2041 | 30,000 | 35,589 | ||||||
323,672 | ||||||||
Oil, Gas & Consumable Fuels – 7.6% | ||||||||
ConocoPhillips | ||||||||
5.90%, 10/15/2032 | 60,000 | 73,226 | ||||||
Enterprise Products Operating LLC | ||||||||
Series D, 6.88%, 3/1/2033 | 90,000 | 112,802 | ||||||
6.45%, 9/1/2040 | 75,000 | 91,200 | ||||||
4.85%, 3/15/2044 | 40,000 | 41,100 | ||||||
4.90%, 5/15/2046 | 30,000 | 31,499 | ||||||
Exxon Mobil Corp. | ||||||||
4.11%, 3/1/2046 | 35,000 | 36,670 | ||||||
Kinder Morgan, Inc. | ||||||||
5.30%, 12/1/2034 | 75,000 | 77,062 | ||||||
Magellan Midstream Partners LP | ||||||||
5.15%, 10/15/2043 | 15,000 | 16,178 | ||||||
Marathon Petroleum Corp. | ||||||||
4.75%, 9/15/2044 | 20,000 | 18,574 | ||||||
Occidental Petroleum Corp. | ||||||||
4.63%, 6/15/2045 | 40,000 | 42,184 | ||||||
ONEOK Partners LP | ||||||||
6.13%, 2/1/2041 | 35,000 | 39,545 | ||||||
Phillips 66 | ||||||||
5.88%, 5/1/2042 | 60,000 | 70,453 |
Principal Amount | Value | |||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Phillips 66 Partners LP | ||||||||
4.90%, 10/1/2046 | $ | 20,000 | $ | 19,641 | ||||
TransCanada PipeLines Ltd. | ||||||||
4.63%, 3/1/2034 | 40,000 | 42,769 | ||||||
Valero Energy Corp. | ||||||||
6.63%, 6/15/2037 | 60,000 | 71,530 | ||||||
784,433 | ||||||||
Pharmaceuticals – 4.2% | ||||||||
Actavis Funding SCS | ||||||||
4.55%, 3/15/2035 | 100,000 | 101,003 | ||||||
AstraZeneca plc | ||||||||
4.38%, 11/16/2045 | 50,000 | 52,016 | ||||||
Eli Lilly & Co. | ||||||||
3.70%, 3/1/2045 | 20,000 | 19,454 | ||||||
GlaxoSmithKline Capital, Inc. | ||||||||
5.38%, 4/15/2034 | 30,000 | 35,302 | ||||||
Johnson & Johnson | ||||||||
4.38%, 12/5/2033 | 30,000 | 33,355 | ||||||
3.70%, 3/1/2046 | 30,000 | 29,758 | ||||||
Merck & Co., Inc. | ||||||||
3.70%, 2/10/2045 | 40,000 | 38,752 | ||||||
Novartis Capital Corp. | ||||||||
3.70%, 9/21/2042 | 30,000 | 29,201 | ||||||
Pfizer, Inc. | ||||||||
4.40%, 5/15/2044 | 60,000 | 63,141 | ||||||
Zoetis, Inc. | ||||||||
4.70%, 2/1/2043 | 30,000 | 31,189 | ||||||
433,171 | ||||||||
Road & Rail – 3.3% | ||||||||
Burlington Northern Santa Fe LLC | ||||||||
6.15%, 5/1/2037 | 40,000 | 51,649 | ||||||
5.75%, 5/1/2040 | 30,000 | 36,844 | ||||||
4.55%, 9/1/2044 | 25,000 | 26,862 | ||||||
4.13%, 6/15/2047 | 20,000 | 20,334 | ||||||
Canadian Pacific Railway Co. | ||||||||
4.80%, 8/1/2045 | 30,000 | 33,251 | ||||||
CSX Corp. | ||||||||
6.15%, 5/1/2037 | 60,000 | 75,294 | ||||||
Norfolk Southern Corp. | ||||||||
4.84%, 10/1/2041 | 40,000 | 43,953 |
See Accompanying Notes to the Financial Statements.
260 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Road & Rail – (continued) | ||||||||
Union Pacific Corp. | ||||||||
4.75%, 9/15/2041 | $ | 20,000 | $ | 21,975 | ||||
4.05%, 3/1/2046 | 25,000 | 25,277 | ||||||
335,439 | ||||||||
Semiconductors & Semiconductor Equipment – 1.3% | ||||||||
Applied Materials, Inc. | ||||||||
5.85%, 6/15/2041 | 15,000 | 18,485 | ||||||
Intel Corp. | ||||||||
4.90%, 7/29/2045 | 45,000 | 51,080 | ||||||
QUALCOMM, Inc. | ||||||||
4.65%, 5/20/2035 | 30,000 | 31,813 | ||||||
4.80%, 5/20/2045 | 35,000 | 36,772 | ||||||
138,150 | ||||||||
Software – 5.9% | ||||||||
Microsoft Corp. | ||||||||
3.50%, 2/12/2035 | 130,000 | 127,568 | ||||||
3.95%, 8/8/2056 | 150,000 | 142,358 | ||||||
4.50%, 2/6/2057 | 75,000 | 78,269 | ||||||
Oracle Corp. | ||||||||
5.38%, 7/15/2040 | 50,000 | 59,175 | ||||||
4.13%, 5/15/2045 | 150,000 | 149,711 | ||||||
4.00%, 7/15/2046 | 55,000 | 53,887 | ||||||
610,968 | ||||||||
Specialty Retail – 0.9% | ||||||||
Home Depot, Inc. (The) | ||||||||
5.88%, 12/16/2036 | 40,000 | 51,166 | ||||||
4.40%, 3/15/2045 | 40,000 | 43,243 | ||||||
94,409 | ||||||||
Technology Hardware, Storage & Peripherals – 2.5% | ||||||||
Apple, Inc. | ||||||||
4.38%, 5/13/2045 | 90,000 | 94,144 | ||||||
4.65%, 2/23/2046 | 120,000 | 131,072 | ||||||
HP, Inc. | ||||||||
6.00%, 9/15/2041 | 30,000 | 31,440 | ||||||
256,656 | ||||||||
Tobacco – 2.9% | ||||||||
Altria Group, Inc. | ||||||||
4.25%, 8/9/2042 | 50,000 | 50,235 | ||||||
5.38%, 1/31/2044 | 50,000 | 58,327 |
Principal Amount | Value | |||||||
Tobacco – (continued) | ||||||||
Philip Morris International, Inc. | ||||||||
4.13%, 3/4/2043 | $ | 120,000 | $ | 117,380 | ||||
Reynolds American, Inc. | ||||||||
5.85%, 8/15/2045 | 65,000 | 77,089 | ||||||
303,031 | ||||||||
Wireless Telecommunication Services – 1.5% | ||||||||
America Movil SAB de CV | ||||||||
6.38%, 3/1/2035 | 75,000 | 89,821 | ||||||
New Cingular Wireless Services, Inc. |
| |||||||
8.75%, 3/1/2031 | 20,000 | 28,527 | ||||||
Rogers Communications, Inc. | ||||||||
5.00%, 3/15/2044 | 30,000 | 32,778 | ||||||
151,126 | ||||||||
Total Corporate Bonds (Cost $9,973,730) | 9,987,948 | |||||||
Total Investments – 96.9% (Cost $9,973,730) | 9,987,948 | |||||||
Other Assets Less Liabilities – 3.1% |
| 319,652 | ||||||
NET ASSETS – 100.0% | $ | 10,307,600 |
(a) | Variable or floating rate security. The interest rate shown was the current rate as of 4/30/2017 and changes periodically. |
(b) | Step bond. Coupon rate is a fixed rate for an initial period that either resets at a specific date or may reset in the future at a contingent upon predetermined trigger. The interest rate shown was the current rate as of 4/30/2017. |
(c) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 188,084 | ||
Aggregate gross unrealized depreciation | (180,302 | ) | ||
Net unrealized appreciation | $ | 7,782 | ||
Federal income tax cost of investments | $ | 9,980,166 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 261 |
Table of Contents
Schedule of Investments
FlexShares® Ready Access Variable Income Fund
April 30, 2017 (Unaudited)
Principal Amount | Value | |||||||
CORPORATE BONDS – 74.6% | ||||||||
Aerospace & Defense – 0.6% | ||||||||
United Technologies Corp. | ||||||||
1.80%, 6/1/2017 | $ | 50,000 | $ | 50,026 | ||||
1.38%, 11/1/2019(a) | 1,000,000 | 1,007,108 | ||||||
1,057,134 | ||||||||
Air Freight & Logistics – 0.7% | ||||||||
United Parcel Service, Inc. | ||||||||
1.13%, 10/1/2017 | 1,160,000 | 1,158,819 | ||||||
Automobiles – 0.4% | ||||||||
Daimler Finance North America LLC | ||||||||
1.38%, 8/1/2017(b) | 750,000 | 749,919 | ||||||
Banks – 15.3% | ||||||||
American Express Bank FSB | ||||||||
1.29%, 6/12/2017(a) | 480,000 | 480,112 | ||||||
Bank of America Corp. | ||||||||
1.66%, 8/25/2017(a) | 818,000 | 819,225 | ||||||
Capital One Bank USA NA | ||||||||
1.30%, 6/5/2017 | 366,000 | 366,028 | ||||||
Citibank NA | ||||||||
1.49%, 3/20/2019(a) | 1,500,000 | 1,503,130 | ||||||
Citigroup, Inc. | ||||||||
2.12%, 4/25/2022(a) | 1,500,000 | 1,503,295 | ||||||
Commonwealth Bank of Australia | ||||||||
1.52%, 3/12/2018(a) (b) | 818,000 | 819,106 | ||||||
1.63%, 3/12/2018 | 1,000,000 | 1,001,669 | ||||||
1.82%, 11/2/2018(a) (b) | 902,000 | 909,376 | ||||||
JPMorgan Chase & Co. | ||||||||
2.06%, 1/25/2018(a) | 1,012,000 | 1,017,763 | ||||||
Lloyds Bank plc | ||||||||
1.66%, 3/16/2018(a) | 1,000,000 | 1,002,296 | ||||||
National Australia Bank Ltd. | ||||||||
1.94%, 1/14/2019(a) | 1,000,000 | 1,007,641 | ||||||
1.75%, 1/10/2020(a) (b) | 2,000,000 | 2,010,626 | ||||||
National Bank of Canada | ||||||||
2.10%, 12/14/2018 | 1,000,000 | 1,004,786 | ||||||
1.96%, 12/14/2018(a) | 1,000,000 | 1,006,264 |
Principal Amount | Value | |||||||
Banks – (continued) | ||||||||
Nederlandse Waterschapsbank NV | ||||||||
1.27%, 2/14/2018(a) (b) | $ | 1,000,000 | $ | 1,002,007 | ||||
Royal Bank of Canada | ||||||||
1.66%, 3/15/2019(a) | 200,000 | 200,849 | ||||||
1.48%, 3/2/2020(a) | 2,400,000 | 2,403,230 | ||||||
1.62%, 3/6/2020(a) | 818,000 | 821,969 | ||||||
Sumitomo Mitsui Trust Bank Ltd. | ||||||||
1.61%, 3/6/2019(a) (b) | 1,000,000 | 1,000,683 | ||||||
US Bancorp | ||||||||
1.56%, 4/25/2019(a) | 690,000 | 692,927 | ||||||
US Bank NA | ||||||||
1.38%, 9/11/2017 | 1,000,000 | 1,000,207 | ||||||
Wells Fargo & Co. | ||||||||
2.10%, 5/8/2017 | 155,000 | 155,019 | ||||||
Series N, 2.15%, 1/30/2020 | 156,000 | 156,557 | ||||||
Wells Fargo Bank NA | ||||||||
1.65%, 9/7/2017(a) | 1,000,000 | 1,001,897 | ||||||
1.65%, 1/22/2018 | 500,000 | 500,851 | ||||||
Westpac Banking Corp. | ||||||||
1.20%, 5/19/2017 | 300,000 | 300,004 | ||||||
1.50%, 12/1/2017 | 75,000 | 75,013 | ||||||
1.79%, 11/23/2018(a) | 902,000 | 909,150 | ||||||
1.53%, 3/6/2020(a) | 2,000,000 | 2,001,216 | ||||||
26,672,896 | ||||||||
Beverages – 1.9% | ||||||||
Coca-Cola Co. (The) | ||||||||
1.09%, 11/16/2017(a) | 1,300,000 | 1,300,542 | ||||||
1.55%, 9/1/2021 | 170,000 | 166,906 | ||||||
PepsiCo, Inc. | ||||||||
Series 1, 1.00%, 10/13/2017 | 902,000 | 901,661 | ||||||
1.64%, 2/22/2019(a) | 902,000 | 910,794 | ||||||
3,279,903 | ||||||||
Capital Markets – 1.8% | ||||||||
Credit Suisse AG | ||||||||
1.75%, 1/29/2018 | 1,225,000 | 1,225,765 | ||||||
Goldman Sachs Group, Inc. (The) | ||||||||
Series 1, 2.37%, 4/30/2018(a) | 1,659,000 | 1,673,518 |
See Accompanying Notes to the Financial Statements.
262 | FLEXSHARES SEMIANNUAL REPORT |
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FlexShares® Ready Access Variable Income Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Morgan Stanley | ||||||||
2.50%, 1/24/2019 | $ | 308,000 | $ | 311,405 | ||||
3,210,688 | ||||||||
Chemicals – 1.0% | ||||||||
EI du Pont de Nemours & Co. | ||||||||
1.70%, 5/1/2020(a) | 1,000,000 | 1,003,090 | ||||||
Monsanto Co. | ||||||||
1.15%, 6/30/2017 | 676,000 | 675,749 | ||||||
1,678,839 | ||||||||
Communications Equipment – 0.9% | ||||||||
Cisco Systems, Inc. | ||||||||
1.40%, 2/28/2018 | 902,000 | 903,009 | ||||||
1.55%, 3/1/2019(a) | 652,000 | 657,959 | ||||||
1,560,968 | ||||||||
Consumer Finance – 11.5% | ||||||||
American Express Credit Corp. | ||||||||
1.53%, 8/15/2019(a) | 893,000 | 895,368 | ||||||
1.52%, 3/3/2020(a) | 2,000,000 | 2,005,400 | ||||||
American Honda Finance Corp. | ||||||||
1.33%, 7/14/2017(a) | 818,000 | 818,372 | ||||||
1.20%, 7/14/2017 | 958,000 | 958,004 | ||||||
1.55%, 12/11/2017 | 200,000 | 200,446 | ||||||
1.21%, 3/8/2018(a) | 500,000 | 499,945 | ||||||
1.38%, 2/14/2020(a) | 680,000 | 682,003 | ||||||
Capital One Financial Corp. | ||||||||
2.06%, 3/9/2022(a) | 1,200,000 | 1,201,078 | ||||||
Caterpillar Financial Services Corp. | ||||||||
1.25%, 8/18/2017 | 125,000 | 124,965 | ||||||
1.44%, 3/22/2019(a) | 2,400,000 | 2,400,751 | ||||||
Ford Motor Credit Co. LLC | ||||||||
Series 1, 1.95%, 3/12/2019(a) | 1,000,000 | 1,002,989 | ||||||
Harley-Davidson Financial Services, Inc. | ||||||||
1.46%, 3/8/2019(a) (b) | 1,500,000 | 1,502,801 | ||||||
John Deere Capital Corp. | ||||||||
1.43%, 10/15/2018(a) | 1,000,000 | 1,002,084 | ||||||
1.95%, 12/13/2018 | 13,000 | 13,067 | ||||||
1.43%, 3/13/2020(a) | 2,149,000 | 2,153,573 |
Principal Amount | Value | |||||||
Consumer Finance – (continued) | ||||||||
Synchrony Financial | ||||||||
1.88%, 8/15/2017 | $ | 1,243,000 | $ | 1,243,431 | ||||
Toyota Motor Credit Corp. | ||||||||
1.24%, 5/16/2017(a) | 760,000 | 760,095 | ||||||
1.45%, 1/12/2018 | 818,000 | 819,294 | ||||||
1.42%, 4/17/2020(a) | 1,700,000 | 1,702,402 | ||||||
19,986,068 | ||||||||
Diversified Financial Services – 4.6% | ||||||||
JPMorgan Chase Bank NA | ||||||||
1.45%, 9/21/2018 | 1,000,000 | 998,510 | ||||||
1.60%, 9/21/2018(a) | 1,000,000 | 1,003,222 | ||||||
Shell International Finance BV | ||||||||
1.35%, 5/10/2017(a) | 1,300,000 | 1,300,148 | ||||||
1.61%, 11/10/2018(a) | 993,000 | 999,920 | ||||||
2.13%, 5/11/2020 | 818,000 | 822,319 | ||||||
Siemens Financieringsmaatschappij NV | ||||||||
1.45%, 5/25/2018(b) | 818,000 | 816,800 | ||||||
1.33%, 5/25/2018(a) | 1,000,000 | 1,002,146 | ||||||
1.48%, 3/16/2020(a) (b) | 1,045,000 | 1,047,092 | ||||||
7,990,157 | ||||||||
Diversified Telecommunication Services – 0.4% | ||||||||
Verizon Communications, Inc. | ||||||||
1.10%, 11/1/2017 | 750,000 | 749,845 | ||||||
Electric Utilities – 0.5% | ||||||||
Southern Co. (The) | ||||||||
1.30%, 8/15/2017 | 873,000 | 872,378 | ||||||
Electrical Equipment – 0.2% | ||||||||
Eaton Corp. | ||||||||
1.50%, 11/2/2017 | 320,000 | 319,980 | ||||||
Food & Staples Retailing – 2.0% | ||||||||
Costco Wholesale Corp. | ||||||||
1.13%, 12/15/2017 | 2,429,000 | 2,426,892 | ||||||
Walgreens Boots Alliance, Inc. | ||||||||
1.75%, 11/17/2017 | 65,000 | 65,113 | ||||||
1.75%, 5/30/2018 | 951,000 | 954,835 | ||||||
3,446,840 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 263 |
Table of Contents
FlexShares® Ready Access Variable Income Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Food Products – 2.8% | ||||||||
Campbell Soup Co. | ||||||||
3.05%, 7/15/2017 | $ | 1,000,000 | $ | 1,003,412 | ||||
Kellogg Co. | ||||||||
1.75%, 5/17/2017 | 1,131,000 | 1,131,177 | ||||||
Kraft Heinz Foods Co. | ||||||||
2.25%, 6/5/2017 | 760,000 | 760,716 | ||||||
Unilever Capital Corp. | ||||||||
0.85%, 8/2/2017 | 2,000,000 | 1,998,096 | ||||||
4,893,401 | ||||||||
Health Care Providers & Services – 1.1% | ||||||||
McKesson Corp. | ||||||||
1.40%, 3/15/2018 | 1,000,000 | 998,041 | ||||||
UnitedHealth Group, Inc. | ||||||||
1.45%, 7/17/2017 | 950,000 | 950,464 | ||||||
1,948,505 | ||||||||
Household Durables – 0.6% | ||||||||
Whirlpool Corp. | ||||||||
1.65%, 11/1/2017 | 978,000 | 978,285 | ||||||
Household Products – 1.1% | ||||||||
Colgate-Palmolive Co. | ||||||||
2.63%, 5/1/2017 | 50,000 | 50,000 | ||||||
Kimberly-Clark Corp. | ||||||||
1.40%, 2/15/2019 | 732,000 | 730,467 | ||||||
1.90%, 5/22/2019 | 273,000 | 274,584 | ||||||
Procter & Gamble Co. (The) | ||||||||
1.30%, 11/1/2019(a) | 805,000 | 807,202 | ||||||
1,862,253 | ||||||||
Industrial Conglomerates – 2.3% | ||||||||
3M Co. | ||||||||
1.00%, 6/26/2017 | 1,000,000 | 999,961 | ||||||
General Electric Co. | ||||||||
5.63%, 9/15/2017 | 55,000 | 55,892 | ||||||
1.60%, 11/20/2017 | 1,000,000 | 1,001,948 | ||||||
5.25%, 12/6/2017 | 100,000 | 102,332 | ||||||
1.67%, 1/14/2019(a) | 760,000 | 765,148 | ||||||
Honeywell International, Inc. | ||||||||
1.40%, 10/30/2019 | 1,000,000 | 993,120 | ||||||
3,918,401 |
Principal Amount | Value | |||||||
Insurance – 1.9% | ||||||||
Berkshire Hathaway Finance Corp. | ||||||||
1.60%, 5/15/2017 | $ | 950,000 | $ | 950,223 | ||||
1.46%, 1/12/2018(a) | 818,000 | 820,098 | ||||||
1.82%, 3/15/2019(a) | 902,000 | 912,195 | ||||||
1.48%, 1/10/2020(a) | 600,000 | 602,722 | ||||||
3,285,238 | ||||||||
Internet & Direct Marketing Retail – 0.3% | ||||||||
Amazon.com, Inc. | ||||||||
1.20%, 11/29/2017 | 545,000 | 544,703 | ||||||
IT Services – 2.7% | ||||||||
International Business Machines Corp. | ||||||||
1.50%, 8/18/2017(a) | 2,602,000 | 2,605,424 | ||||||
1.25%, 2/8/2018 | 400,000 | 399,888 | ||||||
Mastercard, Inc. | ||||||||
2.00%, 4/1/2019 | 156,000 | 157,211 | ||||||
Visa, Inc. | ||||||||
1.20%, 12/14/2017 | 1,536,000 | 1,536,154 | ||||||
4,698,677 | ||||||||
Machinery – 0.6% | ||||||||
Stanley Black & Decker, Inc. | ||||||||
1.62%, 11/17/2018 | 1,000,000 | 997,190 | ||||||
Media – 1.2% | ||||||||
Walt Disney Co. (The) | ||||||||
1.36%, 5/30/2019(a) | 1,060,000 | 1,065,608 | ||||||
1.49%, 3/4/2022(a) | 1,000,000 | 1,005,051 | ||||||
2,070,659 | ||||||||
Oil, Gas & Consumable Fuels – 3.3% | ||||||||
BP Capital Markets plc | ||||||||
1.85%, 5/5/2017 | 60,000 | 60,002 | ||||||
1.78%, 9/26/2018(a) | 855,000 | 859,496 | ||||||
Canadian Natural Resources Ltd. | ||||||||
1.75%, 1/15/2018 | 168,000 | 167,996 | ||||||
Chevron Corp. | ||||||||
1.54%, 5/16/2018(a) | 1,115,000 | 1,120,829 | ||||||
1.18%, 2/28/2019(a) | 1,000,000 | 1,001,089 | ||||||
1.96%, 3/3/2020 | 61,000 | 61,163 | ||||||
1.99%, 5/16/2021(a) | 500,000 | 512,580 |
See Accompanying Notes to the Financial Statements.
264 | FLEXSHARES SEMIANNUAL REPORT |
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FlexShares® Ready Access Variable Income Fund (cont.)
Principal Amount | Value | |||||||
CORPORATE BONDS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Exxon Mobil Corp. | ||||||||
1.65%, 2/28/2018(a) | $ | 902,000 | $ | 907,097 | ||||
Total Capital Canada Ltd. | ||||||||
1.45%, 1/15/2018 | 1,000,000 | 999,667 | ||||||
5,689,919 | ||||||||
Pharmaceuticals – 7.6% | ||||||||
AstraZeneca plc | ||||||||
1.75%, 11/16/2018 | 902,000 | 903,297 | ||||||
1.57%, 11/16/2018(a) | 902,000 | 907,530 | ||||||
Eli Lilly & Co. | ||||||||
1.25%, 3/1/2018 | 2,248,000 | 2,245,601 | ||||||
GlaxoSmithKline Capital plc | ||||||||
1.50%, 5/8/2017 | 2,762,000 | 2,762,116 | ||||||
Johnson & Johnson | ||||||||
5.55%, 8/15/2017 | 1,204,000 | 1,219,241 | ||||||
1.13%, 11/21/2017 | 942,000 | 941,400 | ||||||
1.32%, 3/1/2019(a) | 952,000 | 957,370 | ||||||
Merck & Co., Inc. | ||||||||
1.41%, 5/18/2018(a) | 3,200,000 | 3,211,696 | ||||||
13,148,251 | ||||||||
Road & Rail – 0.5% | ||||||||
Canadian National Railway Co. | ||||||||
1.21%, 11/14/2017(a) | 818,000 | 818,441 | ||||||
Semiconductors & Semiconductor Equipment – 1.4% | ||||||||
Intel Corp. | ||||||||
1.35%, 12/15/2017 | 2,480,000 | 2,481,681 | ||||||
Software – 1.2% | ||||||||
Oracle Corp. | ||||||||
1.35%, 7/7/2017(a) | 370,000 | 370,236 | ||||||
1.20%, 10/15/2017 | 1,802,000 | 1,801,940 | ||||||
2,172,176 | ||||||||
Specialty Retail – 0.8% | ||||||||
Home Depot, Inc. (The) | ||||||||
2.00%, 6/15/2019 | 3,000 | 3,025 | ||||||
Lowe’s Cos., Inc. | ||||||||
1.53%, 9/10/2019(a) | 1,300,000 | 1,309,049 | ||||||
1,312,074 |
Principal Amount | Value | |||||||
Technology Hardware, Storage & Peripherals – 1.6% | ||||||||
Apple, Inc. | ||||||||
1.12%, 2/8/2019(a) | $ | 1,500,000 | $ | 1,500,658 | ||||
1.87%, 2/22/2019(a) | 902,000 | 915,659 | ||||||
1.33%, 5/6/2019(a) | 454,000 | 456,145 | ||||||
2,872,462 | ||||||||
Tobacco – 1.6% | ||||||||
Philip Morris International, Inc. | ||||||||
1.13%, 8/21/2017 | 2,800,000 | 2,798,894 | ||||||
Wireless Telecommunication Services – 0.2% | ||||||||
Vodafone Group plc | ||||||||
1.25%, 9/26/2017 | 405,000 | 404,824 | ||||||
Total Corporate Bonds (Cost $129,424,913) | 129,630,468 | |||||||
ASSET-BACKED SECURITIES – 6.2% | ||||||||
American Express Credit Account Master Trust Series 2017-2, Class A, | 2,000,000 | 2,018,067 | ||||||
AmeriCredit Automobile Receivables Trust Series 2015-3, Class A2A, | 43,779 | 43,781 | ||||||
BMW Vehicle Lease Trust Series 2015-2, Class A2A, | 116,592 | 116,581 | ||||||
CARDS II Trust Series 2015-2A, Class A, 1.51%, 7/15/2020(a) | 1,000,000 | 1,001,186 | ||||||
CarMax Auto Owner Trust Series 2017-1, Class A2, | 1,400,000 | 1,400,516 | ||||||
Citibank Credit Card Issuance Trust | 900,000 | 900,616 | ||||||
CNH Equipment Trust Series 2015-C, Class A2A, | 182,396 | 182,372 | ||||||
Ford Credit Auto Lease Trust Series 2015-B, Class A2A, | 103,239 | 103,230 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 265 |
Table of Contents
FlexShares® Ready Access Variable Income Fund (cont.)
Principal Amount | Value | |||||||
ASSET-BACKED SECURITIES – (continued) | ||||||||
GM Financial Automobile Leasing Trust | $ | 318,883 | $ | 318,813 | ||||
Hyundai Auto Lease Securitization Trust | 500,000 | 500,604 | ||||||
John Deere Owner Trust | 1,000,000 | 1,000,158 | ||||||
Mercedes-Benz Auto Lease Trust | 2,000,000 | 2,000,000 | ||||||
MMAF Equipment Finance LLC Series 2017-AA, Class A1, | 1,000,000 | 1,000,442 | ||||||
World Omni Auto Receivables Trust | 265,087 | 265,256 | ||||||
Total Asset-Backed Securities (Cost $10,829,955) | 10,851,622 | |||||||
U.S. TREASURY OBLIGATIONS – 2.8% | ||||||||
U.S. Treasury Floating Rate Note | ||||||||
0.99%, 10/31/2018(a) | 3,000,000 | 3,006,786 | ||||||
U.S. Treasury Note | ||||||||
0.75%, 2/28/2018 | 1,800,000 | 1,794,902 | ||||||
Total U.S. Treasury Obligations (Cost $4,797,063) | 4,801,688 | |||||||
FOREIGN GOVERNMENT SECURITY – 1.2% | ||||||||
Japan Bank for International Cooperation | ||||||||
1.62%, 2/24/2020 (Cost $2,000,000)(a) | 2,000,000 | 1,999,586 | ||||||
Principal Amount | Value | |||||||
U.S. GOVERNMENT AGENCY SECURITY – 0.6% | ||||||||
FHLMC | ||||||||
1.50%, 9/9/2019 (Cost $999,508) | $ | 1,000,000 | $ | 999,906 | ||||
SHORT-TERM INVESTMENTS – 13.5% | ||||||||
CERTIFICATES OF DEPOSIT – 4.6% | ||||||||
Chase Bank USA NA | ||||||||
1.50%, 1/9/2018(a) | 2,000,000 | 2,003,916 | ||||||
Skandinaviska Enskilda Banken AB | ||||||||
1.20%, 4/26/2018(a) | 3,000,000 | 3,000,000 | ||||||
Toronto-Dominion Bank | ||||||||
1.23%, 7/7/2017 | 1,000,000 | 1,000,416 | ||||||
1.66%, 10/16/2017(a) | 2,000,000 | 2,004,954 | ||||||
Total Certificates of Deposit (Cost $8,000,000) | 8,009,286 | |||||||
COMMERCIAL PAPER – 3.1% | ||||||||
Bennington Stark Capital Co. LLC | ||||||||
1.07%, 5/10/2017(c) | 2,000,000 | 1,999,395 | ||||||
DBS Bank Ltd. | ||||||||
1.01%, 5/16/2017(c) (d) | 3,000,000 | 2,998,727 | ||||||
Whirlpool Corp. | ||||||||
1.22%, 6/5/2017(c) | 500,000 | 499,349 | ||||||
Total Commercial Paper (Cost $5,497,609) | 5,497,471 | |||||||
See Accompanying Notes to the Financial Statements.
266 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Ready Access Variable Income Fund (cont.)
Principal Amount | Value | |||||||
SHORT-TERM INVESTMENTS – (continued) | ||||||||
REPURCHASE AGREEMENT – 5.8% | ||||||||
SG America Securities LLC, 1.26%, dated 4/28/2017, due 5/1/2017, repurchase price $10,001,050, collateralized by various Corporate Bonds, ranging from 1.44% – 11.00%, maturing 5/17/2017 – 6/5/2115; Medium Term Notes, ranging from 5.00% – 8.00%, maturing 1/15/2019 – 6/10/2045; total market value $10,911,416 (Cost $10,000,000) | $ | 10,000,000 | $ | 10,000,000 | ||||
Total Short-Term Investments (Cost $23,497,609) | 23,506,757 | |||||||
Total Investments – 98.9% (Cost $171,549,048) | 171,790,027 | |||||||
Other Assets Less Liabilities – 1.1% |
| 1,943,100 | ||||||
NET ASSETS – 100.0% | $ | 173,733,127 |
(a) | Variable or floating rate security. The interest rate shown was the current rate as of 4/30/2017 and changes periodically. |
(b) | Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(c) | The rate shown was the current yield as of 4/30/2017. |
(d) | Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration normally to qualified institutional buyers. At April 30, 2017, the aggregate value of these securities was $2,998,727, representing 1.7% of net assets. |
Percentages shown are based on Net Assets.
Abbreviations:
FHLMC – Federal Home Loan Mortgage Corp.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 278,596 | ||
Aggregate gross unrealized depreciation | (37,617 | ) | ||
Net unrealized appreciation | $ | 240,979 | ||
Federal income tax cost of investments | $ | 171,549,048 |
FlexShares® Ready Access Variable Income Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2017:
Australia | 5.2 | % | ||
Canada | 6.0 | |||
France | 0.6 | |||
Germany | 2.1 | |||
Japan | 1.7 | |||
Netherlands | 2.4 | |||
Singapore | 1.7 | |||
Sweden | 1.7 | |||
Switzerland | 0.7 | |||
United Kingdom | 5.1 | |||
United States | 71.7 | |||
Other1 | 1.1 | |||
100.0 | % |
1 | Includes any non-fixed-income securities and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 267 |
Table of Contents
Schedule of Investments
FlexShares® Core Select Bond Fund
April 30, 2017 (Unaudited)
Shares | Value | |||||||
EXCHANGE TRADED FUNDS – 96.7% | ||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund(a) | 23,135 | $ | 1,169,243 | |||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund(a) | 8,620 | 444,102 | ||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund(a) | 4,365 | 108,209 | ||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund(a) | 6,797 | 171,692 | ||||||
FlexShares Ready Access Variable Income Fund(a) | 2,655 | 200,479 | ||||||
FlexShares Disciplined Duration MBS Index Fund(a) | 25,698 | 619,579 | ||||||
iShares 20+ Year Treasury Bond Fund | 335 | 40,987 | ||||||
iShares 3-7 Year Treasury Bond Fund | 1,005 | 124,339 | ||||||
iShares 7-10 Year Treasury Bond Fund | 1,230 | 131,118 | ||||||
Total Exchange Traded Funds (Cost $3,009,390) | 3,009,748 | |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENT – 0.7% | ||||||||
U.S. TREASURY OBLIGATION – 0.7% | ||||||||
U.S. Treasury Bill | ||||||||
0.58%, 5/18/2017 (Cost $19,994)(b) (c) | $ | 20,000 | 19,993 | |||||
19,993 | ||||||||
Total Investments – 97.4% (Cost $3,029,384) | 3,029,741 | |||||||
Other Assets Less Liabilities – 2.6% | 81,733 | |||||||
NET ASSETS – 100.0% | $ | 3,111,474 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Funds. |
(b) | All or a portion of the security pledged as collateral for Futures Contracts. |
(c) | The rate shown was the current yield as of 4/30/2017. |
Percentages shown are based on Net Assets.
As of April 30, 2017, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 9,995 | ||
Aggregate gross unrealized depreciation | (9,638 | ) | ||
Net unrealized appreciation | $ | 357 | ||
Federal income tax cost of investments | $ | 3,029,384 |
See Accompanying Notes to the Financial Statements.
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FlexShares® Core Select Bond Fund (cont.)
As of April 30, 2017, the FlexShares Core Select Bond Fund was invested in securities of affiliated FlexShares Funds. The Schedules of Investments of the affiliated FlexShares Funds are located elsewhere in this Report.
Investment in a company which was affiliated for the period ending April 30, 2017, was as follows:
Security | Value November 18, 2016* | Purchases at Cost | Sales at Cost | Value April 30, 2017 | Dividend Income | Realized Loss | ||||||||||||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund | $ | — | $ | 1,164,088 | $ | — | $ | 1,169,243 | $ | 9,275 | $ | — | ||||||||||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | — | 459,319 | 12,031 | 444,102 | 7,158 | (456 | ) | |||||||||||||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | — | 107,940 | — | 108,209 | 503 | — | ||||||||||||||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | — | 170,385 | — | 171,692 | 898 | — | ||||||||||||||||||
FlexShares Ready Access Variable Income Fund | — | 200,425 | — | 200,479 | 284 | — | ||||||||||||||||||
FlexShares Disciplined Duration MBS Index Fund | — | 1,026,566 | 400,537 | 619,579 | 10,656 | (6,197 | ) | |||||||||||||||||
$ | — | $ | 3,128,723 | $ | 412,568 | $ | 2,713,304 | $ | 28,774 | $ | (6,653 | ) |
* | Commencement of investment operations. |
Futures Contracts
FlexShares® Core Select Bond Fund had the following open short futures contracts as of April 30, 2017:
Number of Contracts | Expiration Date | Notional Amount at Value | Unrealized Depreciation | |||||||||||||
U.S. Treasury 10 Year Note Futures Contract | 1 | 06/21/2017 | $ | 125,719 | $ | (1,144 | ) | |||||||||
U.S. Treasury 5 Year Note Futures Contracts | 2 | 06/30/2017 | 236,812 | (2,031 | ) | |||||||||||
$ | (3,175 | ) |
See Accompanying Notes to the Financial Statements.
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Notes to the Financial Statements April 30, 2017 (Unaudited)
1. Organization
FlexShares® Trust (the “Trust”), a Maryland statutory trust, was formed on May 13, 2010, originally named NT ETF Trust and renamed FlexShares® Trust as of April 12, 2011. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940 (the “1940 Act”), as amended. The Trust consists of twenty-five operational exchange-traded funds as of April 30, 2017 (each a “Fund” and collectively, the “Funds”). The FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares® Morningstar Global Upstream Natural Resources Index Fund, FlexShares® STOXX® Global Broad Infrastructure Index Fund, FlexShares® Global Quality Real Estate Index Fund, FlexShares® Real Assets Allocation Index Fund, FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares® Credit-Scored US Corporate Bond Index Fund, FlexShares® Credit-Scored US Long Corporate Bond Index Fund and the FlexShares® Ready Access Variable Income Fund are non-diversified series of the Trust, pursuant to the 1940 Act. The FlexShares® Morningstar US Market Factor Tilt Index Fund, FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares® US Quality Large Cap Index Fund, FlexShares® STOXX® US ESG Impact Index Fund, FlexShares® STOXX® Global ESG Impact Index Fund, FlexShares® Disciplined Duration MBS Index Fund, FlexShares® Quality Dividend Index Fund, FlexShares® Quality Dividend Defensive Index Fund, FlexShares® Quality Dividend Dynamic Index Fund, FlexShares® International Quality Dividend Index Fund, FlexShares® International Quality Dividend Defensive Index Fund, FlexShares® International Quality Dividend Dynamic Index Fund and the FlexShares® Core Select Bond Fund are diversified series of the Trust, pursuant to the 1940 Act.
The FlexShares Core Select Bond Fund commenced operations on November 18, 2016.
Each Fund, except the FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund, seeks to provide investment results that correspond
generally to the price and yield performance, before fees and expenses, of a specified benchmark index (each an “Underlying Index”). The FlexShares US Quality Large Cap Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund and the FlexShares Credit-Scored US Long Corporate Bond Index Fund seek to track Underlying Indices developed by Northern Trust Investments, Inc. (“NTI” or “Investment Adviser”), a subsidiary of Northern Trust Corporation. The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund and FlexShares Morningstar Global Upstream Natural Resources Index Fund seek to track Underlying Indices sponsored by Morningstar, Inc. The FlexShares STOXX® US ESG Impact Index Fund, FlexShares STOXX® Global ESG Impact Index Fund, and FlexShares STOXX® Global Broad Infrastructure Index Fund seek to track an Underlying Index sponsored by STOXX. The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund seek to track Underlying Indices sponsored by Markit Indices Limited. The FlexShares Disciplined Duration MBS Index Fund seeks to track an Underlying Index sponsored by Merrill Lynch, Pierce, Fenner & Smith Inc.
The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund and the FlexShares Core Select Bond Fund are each fund of funds that seeks its investment objective by investing primarily in the shares of other FlexShares ETFs and, in the case of the FlexShares Core Select Bond Fund, unaffiliated ETFs and other registered investment companies (each an “Underlying Fund”), so the
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Notes to the Financial Statements (cont.)
Fund’s investment performance is directly related to the performance of its Underlying Fund(s).
The FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund are actively managed and do not seek to replicate the performance of a specified index. The FlexShares Ready Access Variable Income Fund seeks maximum current income consistent with the preservation of capital and liquidity. The FlexShares Core Select Bond Fund seeks total return and preservation of capital. Each Fund, except the FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund, is referred to herein as an “Index Fund.” Each Fund is managed by the Investment Adviser.
2. Significant Accounting Policies
The Trust, which is an investment company, follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”) or (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Investment Valuation
Each Fund’s Net Asset Value (“NAV”) is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading, based on prices at the time of closing provided that any U.S. fixed-income assets may be valued as of the announced closing time for trading in fixed-income instruments on any day that the Securities Industry and Financial Markets Association announces an early closing time. The NAV of a fund is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
The investments of the Funds are valued at fair value pursuant to the pricing policy and procedures approved by the Board of Trustees. The Funds’ investments are valued using market quotations when available. When market quotations are not readily available, are deemed unreliable, or do not reflect material events occurring between the close of local markets and the time of valuation, the Funds value securities at fair value as determined in good faith in accordance with the Funds’ fair value pricing procedures as approved by the Board of Trustees. Such circumstances includes periods when trading in a security is suspended, the exchange or market on which a security trades closes early, the trading volume in a security is limited, corporate actions and announcements take place, or regulatory news affecting an issuer is released, such as government approvals. Additionally, the Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of market values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and the Trust’s fair value procedures. Other events that can trigger fair valuing of foreign securities include, for example, significant fluctuations in general market indicators, government actions, or natural disasters.
The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other investment companies and investors to price the same investments. Fair value pricing involves subjective judgments and it is possible that a fair value determination for a portfolio security may be materially different than the value that could be realized upon the sale of such security. In addition, fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by an Index Fund’s Underlying Index. This difference may adversely affect an Index Fund’s ability to track its Underlying Index. Portfolio securities of the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares STOXX® Global ESG Impact
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Notes to the Financial Statements (cont.)
Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund and FlexShares International Quality Dividend Dynamic Index Fund are listed on foreign exchanges and their value may change on days when shareholders will not be able to purchase or sell Fund shares.
Security prices are generally provided by independent pricing services. Portfolio securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-denominated foreign securities or American Depositary Receipts (“ADRs”), are valued at the closing price, or last sale price, reported on the exchange or system where the security is principally traded. The closing price for securities traded on the NASDAQ/NMS is the Nasdaq Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value is determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales of the security for that day on any exchange or system, the security is valued at fair value pursuant to the Trust’s fair value procedures.
Securities that are traded regularly in the over-the-counter market (other than the NASDAQ/NMS), including securities listed on exchanges but primarily traded over-the-counter, are valued on the basis of bid quotes or the mean between the bid and asked quotes based upon quotes furnished by one or more broker-dealers or market makers for those securities. Securities that may be traded over-the-counter include equity securities, fixed-income securities, non-exchange-listed foreign securities, and certain derivative instruments. Fixed income securities may be valued using prices provided directly from one or more broker-dealers, market makers, or independent third-party pricing services which may use matrix pricing and valuation models, as well as recent market transactions for the same or similar assets, to derive values when such prices are believed to reflect fair market values of such securities. Such prices
may be determined by taking into account securities prices, yields, maturities, call features, ratings, prepayment speeds, credit risks, cash flows, institutional size trading in similar groups of securities and developments related to specific securities. Fixed-income securities maturing within a relatively short period, less than 60 days, are valued at amortized cost when it approximates fair value.
Foreign equity securities are generally priced at the closing price or last sales price reported on the foreign exchange on which they are principally traded. If there have been no sales for that day on the primary exchange, then the value is determined with reference to the last sale price on any other exchange. If there have been no sales of the security for that day on any exchange, the security will be valued at fair value pursuant to the Trust’s fair value procedures. Spot and forward foreign currency exchange contracts generally are valued using an independent pricing service. The value of assets denominated in foreign currencies is converted into U.S. dollars using exchange rates deemed appropriate by NTI as Investment Adviser. Any use of a different rate from the rates used by the Index Provider may adversely affect the Fund’s ability to track its Underlying Index. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index.
Exchange-traded financial futures and options thereon are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided bid prices, as are swaps. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. If there was no sale on that day, and for other non-exchange traded derivatives, the contract is valued at fair value pursuant to the Trust’s fair value procedures.
Each Fund relies on various sources to calculate its NAV. The ability of the Funds’ administrator to calculate the NAV per share of the Funds is subject to operational risks associated with processing or human errors, systems or technology failures, and errors caused by third party service providers, data sources, or trading counterparties. Such
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Notes to the Financial Statements (cont.)
failures may result in delays in the calculation of the Funds’ NAVs and/or the inability to calculate NAV over extended time periods. The Funds may be unable to recover any losses associated with such failures, and it may be necessary for alternative procedures to be followed to price portfolio securities when determining the Funds’ NAVs.
NTI has established a pricing and valuation committee (the “Northern Trust Asset Management PVC”) whose membership includes representatives of NTI. The Northern Trust Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board of Trustees’ oversight.
The Northern Trust Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Northern Trust Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI monitors markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Northern Trust Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
Various inputs are used in determining the value of each Fund’s investments. These inputs are summarized in three levels listed below:
• | Level 1—Quoted prices in active markets for identical assets on the measurement date. |
• | Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
• | Level 3—Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term debt securities may be valued at amortized cost. Generally, amortized cost approximates the current fair value of a security, but since the valuation is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valued securities are reported quarterly to the Board of Trustees.
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Notes to the Financial Statements (cont.)
The following is a summary of the valuations as of April 30, 2017 for each Fund based upon the three levels defined above. During the period ended April 30, 2017, there were three Level 3 securities. All the transfers in and out of the levels during the period are assumed to be transferred on the last day of the period at their current value. Please refer to the Schedules of Investments to view equity and debt securities segregated by industry type where applicable.
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar US Market Factor Tilt Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 1,026,298,454 | $ | — | $ | — | $ | 1,026,298,454 | ||||||||
Rights | — | — | 51,404 | 51,404 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 48,498,832 | — | 48,498,832 | ||||||||||||
Commercial Paper | — | 10,189,911 | — | 10,189,911 | ||||||||||||
Funding Agreement | — | 3,000,000 | — | 3,000,000 | ||||||||||||
Master Demand Note | — | 4,000,000 | — | 4,000,000 | ||||||||||||
Repurchase Agreements | — | 49,514,530 | — | 49,514,530 | ||||||||||||
Total Investments | $ | 1,026,298,454 | $ | 115,203,273 | $ | 51,404 | $ | 1,141,553,131 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 145,132 | $ | — | $ | — | $ | 145,132 | ||||||||
Total Other Financial Instruments | $ | 145,132 | $ | — | $ | — | $ | 145,132 |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Balance as of 10/31/2016 | $ | 36,207 | ||
Total gain or loss (realized/unrealized included in earnings) | 18,369 | |||
Purchases† | 37,843 | |||
Sales†† | (41,015 | ) | ||
Transfers into Level 3 | — | |||
Transfers out of Level 3 | — | |||
Balance as of 04/30/2017 | $ | 51,404 | ||
The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at 04/30/2017. | $ | (22,646 | ) |
Contingent Value Rights | Fair Value at 4/30/2017 | Valuation Techniques | Unobservable Inputs | Sensitivity1,2 | |||||||||||||
Media General, Inc. | $ | 37,843 | Income Approach | Estimated Recovery Value | 1 | ||||||||||||
Dyax Corp. | $ | 13,561 | Discounted Cash Flow Analysis | Discount Rate and Projected Cash Flows | 2 |
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices*a | Level 2 — Other Significant Observable Inputs*b | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index | ||||||||||||||||
Investments | ||||||||||||||||
Closed End Funds | $ | 1,789,417 | $ | — | $ | — | $ | 1,789,417 | ||||||||
Common Stocks | ||||||||||||||||
Aerospace & Defense | 6,548,540 | 4,420 | — | 6,552,960 | ||||||||||||
Auto Components | 21,401,423 | 22,164 | — | 21,423,587 | ||||||||||||
Banks | 108,032,949 | 306,882 | 530 | 108,340,361 | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 20,943,714 | 57,660 | — | 21,001,374 | ||||||||||||
Food Products | 19,424,441 | 11,204 | — | 19,435,645 | ||||||||||||
Media | 13,494,316 | 28,833 | — | 13,523,149 | ||||||||||||
Metals & Mining | 27,628,726 | 8,401 | — | 27,637,127 | ||||||||||||
Pharmaceuticals | 31,029,778 | 104,077 | — | 31,133,855 | ||||||||||||
Other* | 547,733,188 | — | — | 547,733,188 | ||||||||||||
Investment Company | 3,255 | — | — | 3,255 | ||||||||||||
Rights | 26,133 | 763 | — | 26,896 | ||||||||||||
Securities Lending Reinvestments | �� | |||||||||||||||
Certificates of Deposit | — | 2,050,430 | — | 2,050,430 | ||||||||||||
Commercial Paper | — | 399,519 | — | 399,519 | ||||||||||||
Master Demand Note | — | 500,000 | — | 500,000 | ||||||||||||
Repurchase Agreements | — | 11,295,509 | — | 11,295,509 | ||||||||||||
Total Investments | $ | 798,055,880 | $ | 14,789,862 | $ | 530 | $ | 812,846,272 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 155,506 | $ | — | $ | — | $ | 155,506 | ||||||||
Forward Foreign Currency Contracts | — | 101,882 | — | 101,882 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (23,579 | ) | — | — | (23,579 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (21,797 | ) | — | (21,797 | ) | ||||||||||
Total Other Financial Instruments | $ | 131,927 | $ | 80,085 | $ | — | $ | 212,012 |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Balance as of 10/31/2016 | $ | 533 | ||
Total gain or loss (realized/unrealized included in earnings) | (3 | ) | ||
Purchases† | — | |||
Sales†† | — | |||
Transfers into Level 3 | — | |||
Transfers out of Level 3 | — | |||
Balance as of 04/30/2017 | $ | 530 | ||
The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at 04/30/2017. | $ | (3 | ) |
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Notes to the Financial Statements (cont.)
Common Stock | Fair Value at 4/30/2017 | Valuation Techniques | Unobservable Inputs | Sensitivity3 | |||||||||||||
Banco Espirito Santo SA | $ | 530 | | Discounted Cash Flow Analysis | Distressed/Defaulted Market Discount, Estimated Recovery Value | 3 |
Level 1 — Quoted Prices*c | Level 2 — Other Significant Observable Inputs*d | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Chemicals | $ | 16,800,245 | $ | 166,284 | $ | — | $ | 16,966,529 | ||||||||
Construction Materials | 6,806,009 | 34,780 | — | 6,840,789 | ||||||||||||
Food Products | 6,407,269 | 34,443 | — | 6,441,712 | ||||||||||||
Internet & Direct Marketing Retail | 134,902 | 10,308 | — | 145,210 | ||||||||||||
Machinery | 4,611,135 | 305,132 | — | 4,916,267 | ||||||||||||
Marine | 4,295,528 | 6,858 | — | 4,302,386 | ||||||||||||
Metals & Mining | 15,233,760 | 107,415 | — | 15,341,175 | ||||||||||||
Oil, Gas & Consumable Fuels | 24,209,309 | 86,092 | — | 24,295,401 | ||||||||||||
Pharmaceuticals | 4,669,588 | 257,587 | — | 4,927,175 | ||||||||||||
Real Estate Management & Development | 26,719,822 | 157,365 | — | 26,877,187 | ||||||||||||
Semiconductors & Semiconductor Equipment | 17,329,457 | 242,563 | — | 17,572,020 | ||||||||||||
Software | 1,521,926 | 34,165 | — | 1,556,091 | ||||||||||||
Technology Hardware, Storage & Peripherals | 28,778,228 | 30,179 | — | 28,808,407 | ||||||||||||
Textiles, Apparel & Luxury Goods | 7,445,988 | 532,244 | — | 7,978,232 | ||||||||||||
Other* | 264,815,406 | — | — | 264,815,406 | ||||||||||||
Convertible Preferred Stock | — | 777 | — | 777 | ||||||||||||
Corporate Bond* | — | 10,654 | — | 10,654 | ||||||||||||
Rights | — | 5,865 | — | 5,865 | ||||||||||||
Warrant | 267 | — | — | 267 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 1,502,212 | — | 1,502,212 | ||||||||||||
Total Investments | $ | 429,778,839 | $ | 3,524,923 | $ | — | $ | 433,303,762 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 166,894 | $ | — | $ | — | $ | 166,894 | ||||||||
Forward Foreign Currency Contracts | — | 6,167 | — | 6,167 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (5,874 | ) | — | (5,874 | ) | ||||||||||
Total Other Financial Instruments | $ | 166,894 | $ | 293 | $ | — | $ | 167,187 | ||||||||
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index | ||||||||||||||||
Investments |
| |||||||||||||||
Exchange Traded Fund | $ | 20,201,209 | $ | — | $ | — | $ | 20,201,209 | ||||||||
Total Investments | $ | 20,201,209 | $ | — | $ | — | $ | 20,201,209 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 147,768 | $ | — | $ | 147,768 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (152,377 | ) | — | (152,377 | ) | ||||||||||
Total Other Financial Instruments | $ | — | $ | (4,609 | ) | $ | — | $ | (4,609 | ) | ||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index | ||||||||||||||||
Investments |
| |||||||||||||||
Exchange Traded Fund | $ | 42,205,777 | $ | — | $ | — | $ | 42,205,777 | ||||||||
Total Investments | $ | 42,205,777 | $ | — | $ | — | $ | 42,205,777 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 132,990 | $ | — | $ | 132,990 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (92,994 | ) | — | (92,994 | ) | ||||||||||
Total Other Financial Instruments | $ | — | $ | 39,996 | $ | — | $ | 39,996 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares US Quality Large Cap Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 23,471,290 | $ | — | $ | — | $ | 23,471,290 | ||||||||
Total Investments | $ | 23,471,290 | $ | — | $ | — | $ | 23,471,290 | ||||||||
FLEXSHARES SEMIANNUAL REPORT | 277 |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares STOXX® US ESG Impact Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 8,379,485 | $ | — | $ | — | $ | 8,379,485 | ||||||||
Total Investments | $ | 8,379,485 | $ | — | $ | — | $ | 8,379,485 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares STOXX® Global ESG Impact Index | ||||||||||||||||
Investments | ||||||||||||||||
Closed End Fund | $ | 1,133 | $ | — | $ | — | $ | 1,133 | ||||||||
Common Stocks* | 8,353,378 | — | — | 8,353,378 | ||||||||||||
Total Investments | $ | 8,354,511 | $ | — | $ | — | $ | 8,354,511 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 1,913 | $ | — | $ | — | $ | 1,913 | ||||||||
Total Other Financial Instruments | $ | 1,913 | $ | — | $ | — | $ | 1,913 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 4,373,418,912 | $ | — | $ | — | $ | 4,373,418,912 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 59,055,901 | — | 59,055,901 | ||||||||||||
Commercial Paper | — | 6,491,500 | — | 6,491,500 | ||||||||||||
Funding Agreement | — | 3,000,000 | — | 3,000,000 | ||||||||||||
Master Demand Note | — | 5,000,000 | — | 5,000,000 | ||||||||||||
Repurchase Agreements | — | 80,678,956 | — | 80,678,956 | ||||||||||||
Total Investments | $ | 4,373,418,912 | $ | 154,226,357 | $ | — | $ | 4,527,645,269 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 156,041 | $ | — | $ | — | $ | 156,041 | ||||||||
Forward Foreign Currency Contracts | — | 295,195 | — | 295,195 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (27,405 | ) | — | — | (27,405 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (210,398 | ) | — | (210,398 | ) | ||||||||||
Total Other Financial Instruments | $ | 128,636 | $ | 84,797 | $ | — | $ | 213,433 |
278 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs*e | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares STOXX® Global Broad Infrastructure Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Commercial Services & Supplies | $ | 26,761,779 | $ | 168,892 | $ | — | $ | 26,930,671 | ||||||||
Other* | 838,919,999 | — | — | 838,919,999 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 11,001,228 | — | 11,001,228 | ||||||||||||
Commercial Paper | — | 2,996,136 | — | 2,996,136 | ||||||||||||
Repurchase Agreements | — | 33,401,557 | — | 33,401,557 | ||||||||||||
Total Investments | $ | 865,681,778 | $ | 47,567,813 | $ | — | $ | 913,249,591 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 90,087 | $ | — | $ | — | $ | 90,087 | ||||||||
Forward Foreign Currency Contracts | — | 47,328 | — | 47,328 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (6,289 | ) | — | — | (6,289 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (34,627 | ) | — | (34,627 | ) | ||||||||||
Total Other Financial Instruments | $ | 83,798 | $ | 12,701 | $ | — | $ | 96,499 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Global Quality Real Estate Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 202,893,590 | $ | — | $ | — | $ | 202,893,590 | ||||||||
Right | — | 2,541 | — | 2,541 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 1,500,803 | — | 1,500,803 | ||||||||||||
Commercial Paper | — | 399,519 | — | 399,519 | ||||||||||||
Master Demand Note | — | 100,000 | — | 100,000 | ||||||||||||
Repurchase Agreements | — | 2,036,752 | — | 2,036,752 | ||||||||||||
Total Investments | $ | 202,893,590 | $ | 4,039,615 | $ | — | $ | 206,933,205 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 37,607 | $ | — | $ | — | $ | 37,607 | ||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (1,382 | ) | — | — | (1,382 | ) | ||||||||||
Total Other Financial Instruments | $ | 36,225 | $ | — | $ | — | $ | 36,225 | ||||||||
FLEXSHARES SEMIANNUAL REPORT | 279 |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Real Assets Allocation Index | ||||||||||||||||
Investments | ||||||||||||||||
Exchange Traded Funds | $ | 2,673,702 | $ | — | $ | — | $ | 2,673,702 | ||||||||
Total Investments | $ | 2,673,702 | $ | — | $ | — | $ | 2,673,702 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Quality Dividend Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 1,683,662,428 | $ | — | $ | — | $ | 1,683,662,428 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 68,392,815 | — | 68,392,815 | ||||||||||||
Commercial Paper | — | 16,983,581 | — | 16,983,581 | ||||||||||||
Funding Agreement | — | 4,000,000 | — | 4,000,000 | ||||||||||||
Repurchase Agreements | — | 47,908,255 | — | 47,908,255 | ||||||||||||
Total Investments | $ | 1,683,662,428 | $ | 137,284,651 | $ | — | $ | 1,820,947,079 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 105,695 | $ | — | $ | — | $ | 105,695 | ||||||||
Total Other Financial Instruments | $ | 105,695 | $ | — | $ | — | $ | 105,695 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Quality Dividend Defensive Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 301,210,025 | $ | — | $ | — | $ | 301,210,025 | ||||||||
Rights | — | 8,988 | — | 8,988 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 7,501,514 | — | 7,501,514 | ||||||||||||
Commercial Paper | — | 2,197,183 | — | 2,197,183 | ||||||||||||
Master Demand Note | — | 500,000 | — | 500,000 | ||||||||||||
Repurchase Agreements | — | 16,197,570 | — | 16,197,570 | ||||||||||||
Total Investments | $ | 301,210,025 | $ | 26,405,255 | $ | — | $ | 327,615,280 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 33,967 | $ | — | $ | — | $ | 33,967 | ||||||||
Total Other Financial Instruments | $ | 33,967 | $ | — | $ | — | $ | 33,967 |
280 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Quality Dividend Dynamic Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 66,658,698 | $ | — | $ | — | $ | 66,658,698 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Commercial Paper | — | 199,759 | — | 199,759 | ||||||||||||
Master Demand Note | — | 100,000 | — | 100,000 | ||||||||||||
Repurchase Agreements | — | 1,889,680 | — | 1,889,680 | ||||||||||||
Total Investments | $ | 66,658,698 | $ | 2,189,439 | $ | — | $ | 68,848,137 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 8,317 | $ | — | $ | — | $ | 8,317 | ||||||||
Total Other Financial Instruments | $ | 8,317 | $ | — | $ | — | $ | 8,317 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares International Quality Dividend Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 696,118,632 | $ | — | $ | — | $ | 696,118,632 | ||||||||
Right | — | 2,748 | — | 2,748 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Commercial Paper | — | 99,880 | — | 99,880 | ||||||||||||
Repurchase Agreements | — | 6,764,351 | — | 6,764,351 | ||||||||||||
Total Investments | $ | 696,118,632 | $ | 6,866,979 | $ | — | $ | 702,985,611 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 214,193 | $ | — | $ | — | $ | 214,193 | ||||||||
Forward Foreign Currency Contracts | — | 93,165 | — | 93,165 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (30,728 | ) | — | — | (30,728 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (85,378 | ) | — | (85,378 | ) | ||||||||||
Total Other Financial Instruments | $ | 183,465 | $ | 7,787 | $ | — | $ | 191,252 |
FLEXSHARES SEMIANNUAL REPORT | 281 |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares International Quality Dividend Defensive Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 81,501,432 | $ | — | $ | — | $ | 81,501,432 | ||||||||
Right | — | 294 | — | 294 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 2,504,854 | — | 2,504,854 | ||||||||||||
Total Investments | $ | 81,501,432 | $ | 2,505,148 | $ | — | $ | 84,006,580 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 48,343 | $ | — | $ | — | $ | 48,343 | ||||||||
Forward Currency Contracts | — | 488 | — | 488 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (83 | ) | — | (83 | ) | ||||||||||
Total Other Financial Instruments | $ | 48,343 | $ | 405 | $ | — | $ | 48,748 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs*f | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares International Quality Dividend Dynamic Index | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Textiles, Apparel & Luxury Goods | $ | 924,589 | $ | 89,442 | $ | — | $ | 1,014,031 | ||||||||
Other* | 55,637,412 | — | — | 55,637,412 | ||||||||||||
Right | — | 294 | — | 294 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 1,116,788 | — | 1,116,788 | ||||||||||||
Total Investments | $ | 56,562,001 | $ | 1,206,524 | $ | — | $ | 57,768,525 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 29,161 | $ | — | $ | — | $ | 29,161 | ||||||||
Total Other Financial Instruments | $ | 29,161 | $ | — | $ | — | $ | 29,161 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index | ||||||||||||||||
Investments | ||||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 2,012,300,244 | $ | — | $ | 2,012,300,244 | ||||||||
Total Investments | $ | — | $ | 2,012,300,244 | $ | — | $ | 2,012,300,244 |
282 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index | ||||||||||||||||
Investments | ||||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 765,018,128 | $ | — | $ | 765,018,128 | ||||||||
Total Investments | $ | — | $ | 765,018,128 | $ | — | $ | 765,018,128 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Disciplined Duration MBS Index | ||||||||||||||||
Investments |
| |||||||||||||||
Mortgage-Backed Securities | $ | — | $ | 35,896,473 | $ | — | $ | 35,896,473 | ||||||||
Total Investments | $ | — | $ | 35,896,473 | $ | — | $ | 35,896,473 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Credit-Scored US Corporate Bond Index | ||||||||||||||||
Investments |
| |||||||||||||||
Corporate Bonds* | $ | — | $ | 39,831,403 | $ | — | $ | 39,831,403 | ||||||||
Total Investments | $ | — | $ | 39,831,403 | $ | — | $ | 39,831,403 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Credit-Scored US Long Corporate Bond Index | ||||||||||||||||
Investments |
| |||||||||||||||
Corporate Bonds* | $ | — | $ | 9,987,948 | $ | — | $ | 9,987,948 | ||||||||
Total Investments | $ | — | $ | 9,987,948 | $ | — | $ | 9,987,948 | ||||||||
FLEXSHARES SEMIANNUAL REPORT | 283 |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Ready Access Variable Income | ||||||||||||||||
Investments |
| |||||||||||||||
Asset-Backed Securities | $ | — | $ | 10,851,622 | $ | — | $ | 10,851,622 | ||||||||
Corporate Bonds* | — | 129,630,468 | — | 129,630,468 | ||||||||||||
Foreign Government Security | — | 1,999,586 | — | 1,999,586 | ||||||||||||
U.S. Government Agency Security | — | 999,906 | — | 999,906 | ||||||||||||
Short-Term Investments | — | 23,506,757 | — | 23,506,757 | ||||||||||||
U.S. Treasury Obligations | — | 4,801,688 | — | 4,801,688 | ||||||||||||
Total Investments | $ | �� | $ | 171,790,027 | $ | — | $ | 171,790,027 | ||||||||
Level 1 — Quoted Prices* | Level 2 — Other Significant Observable Inputs* | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Core Select Bond | ||||||||||||||||
Investments |
| |||||||||||||||
Exchange Traded Funds | $ | 3,009,748 | $ | — | $ | — | $ | 3,009,748 | ||||||||
Short-Term Investment | — | 19,993 | — | 19,993 | ||||||||||||
Total Investments | $ | 3,009,748 | $ | 19,993 | $ | — | $ | 3,029,741 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (3,175 | ) | $ | — | $ | — | $ | (3,175 | ) | ||||||
Total Other Financial Instruments | $ | (3,175 | ) | $ | — | $ | — | $ | (3,175 | ) |
* | See Schedules of Investments for segregation by industry type. |
† | Purchases include all purchases of securities and securities received in corporate actions. |
†† | Sales include all sales of securities, maturities, paydowns and securities tendered in corporate action. |
a | During the period ended April 30, 2017, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund changed classification of security with a market value of $512 or 0.00% of the Fund’s net assets from Level 2 to Level 1 due to security being valued at unadjusted quoted market prices. |
b | During the period ended April 30, 2017, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund changed classification of securities with an aggregated market value of $212,733 or 0.03% of the Fund’s net assets from Level 1 to Level 2 due to securities being valued with other observable inputs. |
c | During the period ended April 30, 2017, the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund changed classification of securities with an aggregated market value of $65,835 or 0.02% of the Fund’s net assets from Level 2 to Level 1 due to securities being valued at unadjusted quoted market prices. |
d | During the period ended April 30, 2017, the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund changed classification of securities with an aggregated market value of $1,067,471 or 0.24% of the Fund’s net assets from Level 1 to Level 2 due to securities being valued with other observable inputs. |
e | During the period ended April 30, 2017, the FlexShares STOXX® Global Broad Infrastructure Index Fund changed classification of security with a market value of $168,892 or 0.02% of the Fund’s net assets from Level 1 to Level 2 due to security being valued with other observable inputs. |
f | During the period ended April 30, 2017, the FlexShares International Quality Dividend Dynamic Index Fund changed classification of security with a market value of $89,442 or 0.16% of the Fund’s net assets from Level 1 to Level 2 due to security being valued with other observable inputs. |
284 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Notes to the Financial Statements (cont.)
1 | The significant unobservable input that can be used in the fair value measurement is Estimated Recovery Value. Significant increases (decreases) in estimated recovery value would result in a significantly higher (lower) fair value measurement. |
2 | The significant unobservable inputs that can be used in the fair value measurement are Discount Rate and Projected Cash Flows. Significant increases (decreases) in Discount Rates in isolation would result in a significantly lower (higher) fair value measurement while an increase (decrease) in Projected Cash Flow in isolation would result in a significantly higher (lower) fair value measurement. |
3 | The significant unobservable inputs that can be used in the fair value measurement are Distressed/Defaulted Market Discount and Estimated Recovery Value. Significant increases (decreases) in the market discount in isolation would result in a significantly lower (higher) fair value measurement while an increase (decrease) in estimated recovery value in isolation would result in a significantly higher (lower) fair value measurement. |
Foreign Securities
The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund (through its investment in its Underlying Fund), FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund (through its investment in its Underlying Fund), FlexShares STOXX® Global ESG Impact Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund (through its investment in its Underlying Funds), FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund invest in publicly-traded equity securities of issuers in countries other than the United States of America (“U.S.”). Such investments include direct investments in non-U.S. dollar denominated securities traded outside the U.S. The Funds’ investments also may be in the form of ADRs and Global Depositary Receipts (“GDRs”) (collectively, “Depositary Receipts”) based on securities in their Underlying Indexes. ADRs are receipts that are traded in the United States evidencing ownership of the underlying foreign securities and are denominated in U.S. dollars. GDRs are receipts issued by a non-U.S. financial institution evidencing ownership of underlying foreign or U.S. securities and usually are denominated in foreign currencies. GDRs may not be denominated in the same currency as the securities they represent. Generally, GDRs are designed for use in foreign securities markets.
To the extent a Fund invests in ADRs, such ADRs will be listed on a national securities exchange. To the extent a Fund
invests in GDRs, such GDRs will be listed on a foreign exchange. A Fund will not invest in any unlisted Depositary Receipt, any Depositary Receipt that NTI deems to be illiquid or any Depositary Receipt for which market quotations are not readily available. Generally, all Depositary Receipts must be sponsored.
The FlexShares Credit-Scored US Corporate Bond Index Fund and FlexShares Credit-Scored US Long Corporate Bond Index Fund may invest in U.S. dollar denominated bonds of non-U.S. corporations to the extent such bonds are included in each Fund’s underlying index.
The FlexShares Ready Access Variable Income 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.
Investing in foreign securities, including Depositary Receipts, may result in a Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in U.S. securities, due to less liquid markets, and adverse economic, political, diplomatic, financial, and regulatory factors. Foreign governments also may impose taxes and limits on investment and repatriation. Any of these events could cause the value of a Fund’s foreign investment to decline.
The FlexShares Morningstar Emerging Markets Factor Tilt Index Fund and the FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund (through its investment in its Underlying Fund) will invest primarily in emerging market countries. In addition, the FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund
FLEXSHARES SEMIANNUAL REPORT | 285 |
Table of Contents
Notes to the Financial Statements (cont.)
(through its investment in its Underlying Funds), FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund may invest its assets in emerging market countries. The FlexShares Ready Access Variable Income Fund may invest up to 20% of its total assets in fixed-income securities and instruments of issuers in emerging markets. The markets of emerging market countries are less developed and less liquid, subject to greater price volatility and generally subject to increased economic, political, regulatory and other uncertainties than more developed foreign markets. The risks of foreign investment are increased when the issuer is located in a country with an emerging economy or securities market.
Inflation-Indexed Securities
The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund invest primarily in U.S. Treasury Inflation-Protected Securities (“TIPS”). The FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund may invest in inflation-indexed securities.
TIPS issued by the U.S. Treasury have varying maturities and pay interest on a semiannual basis equal to a fixed percentage of the inflation-adjusted principal amount. If the periodic adjustment rate measuring inflation falls, the principal value of TIPS will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original principal upon maturity (as adjusted for inflation) is guaranteed in the case of TIPS, even during a period of deflation.
The value of TIPS is expected to change in response to changes in real interest rates. Real interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of TIPS. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of TIPS. Any increase in the principal
amount of TIPS will be considered taxable ordinary income, even though investors do not receive their principal until maturity.
While these securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation, investors in these securities may not be protected to the extent that the increase is not reflected in the TIPS’ inflation measure.
The periodic adjustment of TIPS is tied to the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. There can be no assurance that the CPI-U will accurately measure the real rate of inflation in the prices of goods and services.
Mortgage-Backed Pass-Through Securities
The FlexShares Disciplined Duration MBS Index Fund invests primarily in U.S. agency mortgage-backed pass-through securities (“MBS”), a category of pass-through securities backed by pools of mortgages and issued by one of the following U.S. government agencies: the Federal National Mortgage Association (FNMA or Fannie Mae), the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) or the Government National Mortgage Association (GNMA or Ginnie Mae) (each a “US Agency”). Under normal circumstances, the Fund will invest at least 80% of its total assets in the securities of its Underlying Index and in “to-be announced transactions” (“TBA transactions”) that represent securities in its Underlying Index. In a TBA transaction, the buyer and seller agree upon general trade parameters such as agency, coupon rate, settlement date, par amount and price. The actual pools delivered generally are determined two days prior to settlement.
Pending settlement of such TBA contracts, the FlexShares Disciplined Duration MBS Index Fund will invest in liquid, short-term instruments. The FlexShares Core Select Bond Fund may also invest either directly or through its Underlying Funds in MBS, including TBA transactions.
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Notes to the Financial Statements (cont.)
Mortgage Dollar Rolls
The FlexShares Disciplined Duration MBS Index Fund and the FlexShares Core Select Bond Fund (directly or through its Underlying Funds) may enter into mortgage dollar roll transactions. A mortgage dollar roll involves the sale by the Fund of securities for delivery in the future (generally within 30 days). The Fund simultaneously contracts with the same counterparty to repurchase substantially similar (same type, coupon and maturity) but not identical securities on a specified future date. During the roll period, the Fund will not be entitled to accrue interest and receive principal payments on the securities sold. However, the Fund benefits to the extent of any difference between (a) the price received for the securities sold and (b) the lower forward price for the future purchase and/or fee income plus the interest earned on the cash proceeds of the securities sold. Successful use of mortgage dollar rolls depends upon the Investment Adviser’s ability to predict correctly interest rates and mortgage prepayments.
For financial reporting and tax purposes, a Fund treats mortgage dollar rolls as two separate transactions: one involving the purchase of a security and a separate transaction involving a sale. The Fund currently does not intend to enter into mortgage dollar rolls that are accounted for as financing and does not treat them as borrowings.
Repurchase Agreements
To the extent consistent with its investment policies, each Fund may enter into repurchase agreements under which it purchases securities (collateral) for cash from a seller and agrees to resell those securities to the same seller within a specified time at a specified price. During the term of a repurchase agreement, the market value of the underlying collateral, including accrued interest, is required to equal or exceed the market value of the repurchase agreement. The underlying collateral for tri-party repurchase agreements is held in accounts for JP Morgan Chase, the Fund’s custodian, and is not reflected in the assets of the Portfolios, at the Bank of New York or JPMorgan Chase which, in turn, holds securities through the book-entry system at the Federal Reserve Bank of New York. The Fund is subject to credit risk
on repurchase agreements to the extent that the counterparty fails to perform under the agreement and the value of the collateral received falls below the agreed repurchase price.
The Northern Trust Company, the parent of NTI, currently is a party to various Master Repurchase Agreements with a number of different counterparties, and acts as agent on behalf of various disclosed principals, including the Funds and various other accounts managed by NTI, in entering into repurchase agreements under the Master Repurchase Agreements. NTI administers and manages these repurchase agreements in accordance with and as part of its duties under its investment advisory agreement with the Funds and does not collect any additional fees from the Funds for such services. As of April 30, 2017, the FlexShares Ready Access Variable Income Fund had entered into repurchase agreements, as reflected in its Schedule of Investments under the caption “Repurchase Agreements.”
As of the period ended April 30, 2017 the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund invested cash collateral for loans of portfolio securities in repurchase agreements, as reflected in the respective Schedule of Investments under the caption “Securities Lending Reinvestments.”
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Notes to the Financial Statements (cont.)
Securities Lending
Each Fund may lend securities to banks, brokers and dealers or other qualified institutions. In exchange, the Fund is required to receive minimum initial collateral value as follows:
Type of Loan | Minimum Initial Collateral Requirement | |||
U.S. dollar denominated securities secured by U.S. dollar denominated government securities or cash collateral | 102 | % | ||
U.S. dollar denominated securities secured by non-U.S. dollar denominated government securities or cash collateral | 105 | % | ||
Non-U.S. dollar denominated securities secured by government securities or cash collateral in the same denomination as the lent securities | 102 | % | ||
Non-U.S. dollar denominated securities secured by government securities or cash collateral in the different denomination from the lent securities | 105 | % | ||
U.S. dollar and Non-U.S. dollar denominated securities secured by equity securities collateral | 105 | % |
The collateral is maintained thereafter, at a value equal to at least 100% of the value of the securities loaned. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is sent to the borrower.
Securities lending may represent no more than one-third of the value of a Fund’s total assets (including the loan collateral). JPMorgan Chase Bank, N.A. (the “Securities Lending Agent”) serves as the securities lending agent for the securities lending program of a Fund.
Collateral for loans of portfolio securities made by a Fund may consist of cash, cash equivalents, securities issued or guaranteed by the U.S. government or foreign governments or its agencies (or any combination thereof). Any cash collateral received by the Fund in connection with these loans may be invested in a variety of short-term investments,
either directly or indirectly through money market portfolios. The market value of securities on loan, and the value of investments made with cash collateral received are disclosed in the Schedule of Investments. Securities lending income includes income from the securities lending program recorded when earned from the Securities Lending Agent and any fees charged to borrowers less expenses associated with the loan. The net amount is reflected in the Statement of Operations under “Securities lending income (net of fees).”
When a Fund lends its securities, it will continue to receive payments equal to the dividends and interest paid on the securities loaned and simultaneously may earn interest on the investment of the cash collateral.
A Fund will have the right to terminate a loan at any time and recall the loaned securities within the normal and customary settlement time for securities transactions. A Fund does not have the right to vote securities on loan, but can terminate the loan and regain the right to vote if a material event affecting the securities occurred. A borrower might become insolvent or refuse to honor its obligation to return the securities. In this event, a Fund could experience delays in recovering its securities and possibly may incur a capital loss. Each Fund will be responsible for any loss that might result from its investment of the cash collateral it receives from a borrower.
In accordance with guidance presented in FASB ASU 2014-11, Balance Sheet (Topic) 860: Repurchase to-Maturity Transactions, Repurchase Financings, and Disclosures, liabilities under the outstanding securities lending transactions as of April 30, 2017, which were comprised of cash, were as follow:
Fund | ||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 115,207,632 | ||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 14,247,723 | |||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 1,502,212 | |||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 154,224,604 |
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Notes to the Financial Statements (cont.)
Fund | ||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | $ | 47,397,378 | ||
FlexShares Global Quality Real Estate Index Fund | 4,039,473 | |||
FlexShares Quality Dividend Index Fund | 137,357,805 | |||
FlexShares Quality Dividend Defensive Index Fund | 26,396,870 | |||
FlexShares Quality Dividend Dynamic Index Fund | 2,189,156 | |||
FlexShares International Quality Dividend Index Fund | 6,864,089 | |||
FlexShares International Quality Dividend Defensive Index Fund | 2,504,854 | |||
FlexShares International Quality Dividend Dynamic Index Fund | 1,116,788 |
At April 30, 2017, the Securities Lending Agency Agreement does not permit the Fund to enforce a netting arrangement.
Derivative Contracts
Futures Contracts
All of the Index Funds may invest in futures contracts to help track the price and yield performance of their underlying indexes. The FlexShares Core Select Bond Fund may take long or short positions in futures to manage the Fund’s exposure to interest rate risk. The Fund seeks to mitigate the potential impact of interest rates on the performance of bonds by entering into short positions in U.S. Treasury futures or transact in interest rate swaps. The Fund’s short positions in U.S. Treasury futures and interest rate swaps are not intended to mitigate credit spread risk or other factors influencing the price of bonds, which may have a greater impact than interest rates. In addition, when interest rates fall, long-only bond investments will perform better than the Fund’s investments. At the time a Fund enters into a futures contract, it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Subsequent payments to be made or received by the Funds equal to the change in contract value are recorded as variation margin payable or receivable and offset in unrealized gains or losses. Futures are marked to market each day with
the change in value reflected in the unrealized gains or losses. A Fund recognizes a realized gain or loss when a contract is closed or expires. The Statements of Operations reflect unrealized gains or losses on open futures contracts, as “Net change in unrealized appreciation (depreciation) on futures contracts”, and any realized gains (losses) on closed futures contracts as “Net realized gain (loss) on futures contracts”. As of April 30, 2017, the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX® Global ESG Impact Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, and the FlexShares Core Select Bond Fund had open futures contracts.
The use of futures contracts involves, to varying degrees, elements of market and counterparty risk, which may exceed the amounts recognized in the Statements of Assets and Liabilities. Futures contracts present the following risks: imperfect correlation between the change in market value of a Fund’s securities and the price of futures contracts; the possible inability to close a futures contract when desired; losses due to unanticipated market movements, which potentially are unlimited; and the possible inability of NTI to correctly predict the direction of securities prices, interest rates, currency exchange rates and other economic factors. Futures markets are highly volatile and the use of futures may increase the volatility of a Fund’s NAV. As a result of the low margin deposits normally required in futures trading, a relatively small price movement in a futures contract may result in substantial losses to a Fund. Futures contracts may be illiquid, and exchanges may limit fluctuations in futures contract prices during a single day. Foreign exchanges or boards of trade generally do not offer the same protection as U.S. exchanges.
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Notes to the Financial Statements (cont.)
Foreign Currency Translations
Values of investments denominated in foreign currencies are converted into U.S. dollars using the prevailing market rates on the date of valuation as quoted by one or more banks or dealers that make a two-way market in such currencies (or a data service provider based on quotations received from such banks or dealers). Any use of a rate different from the rates used by an Index Fund’s index provider may affect a Fund’s ability to track its Underlying Index. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received, and the portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in “Net realized gain (loss) on investment in securities” on the Statements of Operations. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currencies” on the Statements of Operations.
Forward Foreign Currency Exchange Contracts
The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund and FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund expect to use forward foreign currency contracts to hedge the currency exposure resulting from investments in foreign securities, to facilitate local settlements or to protect against currency exposure in connection with their distributions to shareholders. The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX® Global ESG Impact Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index
Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, and the FlexShares Ready Access Variable Income Fund may enter into forward foreign currency exchange contracts to facilitate local settlements or to protect against currency exposure in connection with its distributions to shareholders. The Index Funds, however, do not expect to engage in currency transactions for speculative purposes (e.g., for potential income or capital gain). The FlexShares Ready Access Variable Income Fund also may engage in forward foreign currency transactions for hedging purposes in order to protect against uncertainty in the level of future foreign currency exchange rates. The Fund, however, does not expect to engage in currency transactions for speculative purposes. All forward foreign currency exchange contracts held are “marked-to-market” daily at the applicable exchange rates and any resulting unrealized gains or losses are recorded. The Funds record realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction or extinguished by delivery of the currency. The difference between the future foreign currency exchange rates at the date of entry into the contract and the rates at the reporting date are included in “Net change in unrealized appreciation (depreciation) on forward foreign currency contracts” in the Statement of Operations. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in U.S. dollars without the delivery of foreign currency.
There are several risks associated with these contracts. One risk is the potential inability of counterparties to meet the terms of their contracts, and unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The Statements of Operations reflect (i) realized gains or losses, if any, in “Net realized gain (loss) on foreign currency transactions” and (ii) unrealized gains or losses in “Net change in
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Notes to the Financial Statements (cont.)
unrealized appreciation (depreciation) on forward foreign currency contracts”. Forward foreign currency exchange contracts are privately negotiated transactions and can have substantial price volatility. As a result, they offer less protection against default by the other party than is available for instruments traded on an exchange. The institutions that deal in forward foreign currency exchange contracts are not required to continue to make markets in the currencies they trade, and these markets can experience periods of illiquidity.
As of April 30, 2017, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares International Quality Dividend Index Fund, and the FlexShares International Quality Dividend Defensive Index Fund had open forward foreign currency contracts.
Offsetting of Financial Assets and Derivative Assets
The Funds’ accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agree-
ment or similar agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statements of Assets and Liabilities across transactions between the Fund and the applicable counterparty. In the event of a default, the agreement provides the right for the non-defaulting party to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral. The Funds’ right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject.
For financial reporting purposes, the Trust can offset financial assets and financial liabilities of the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, and the FlexShares Ready Access Variable Income Fund that are subject to master netting arrangements or similar agreements in the Statements of Assets and Liabilities. The following table presents the gross and net amounts of these assets and liabilities:
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Assets presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | Foreign Currency Contracts — Bank of New York | $ | 11,141 | $ | — | $ | — | $ | 11,141 | |||||||||
Foreign Currency Contracts — Citibank NA | 30,636 | — | — | 30,636 | ||||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 1,415 | (1,415 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 26,666 | (181 | ) | — | 26,485 | |||||||||||||
Foreign Currency Contracts — Societe Generale | 2,269 | — | — | 2,269 | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 29,755 | (16,662 | ) | — | 13,093 | |||||||||||||
Total | $ | 101,882 | $ | (18,258 | ) | $ | — | $ | 83,624 |
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Notes to the Financial Statements (cont.)
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Assets presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | Foreign Currency Contracts — BNP Paribas SA | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Citibank NA | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 2,172 | — | — | 2,172 | ||||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | 3,995 | (217 | ) | — | 3,778 | |||||||||||||
Total | $ | 6,167 | $ | (217 | ) | $ | — | $ | 5,950 | |||||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | Foreign Currency Contracts — Toronto-Dominion Bank (The) | $ | 147,768 | $ | (147,768 | ) | $ | — | $ | — | ||||||||
Total | $ | 147,768 | $ | (147,768 | ) | $ | — | $ | — | |||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | Foreign Currency Contracts — Citibank NA | $ | 18,952 | $ | (18,952 | ) | $ | — | $ | — | ||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 45,361 | (6,651 | ) | — | 38,710 | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | 12,971 | (12,971 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 580 | — | — | 580 | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 55,126 | (29,223 | ) | — | 25,903 | |||||||||||||
Total | $ | 132,990 | $ | (67,797 | ) | $ | — | $ | 65,193 | |||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | Foreign Currency Contracts — Bank of New York | $ | 1,590 | $ | (1,590 | ) | $ | — | $ | — | ||||||||
Foreign Currency Contracts — Citibank NA | 834 | (834 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 42,785 | (42,785 | ) | — | — | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | 42,322 | (2,376 | ) | — | 39,946 | |||||||||||||
Foreign Currency Contracts — Societe Generale | 24,815 | (24,815 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 182,849 | (28,388 | ) | — | 154,461 | |||||||||||||
Total | $ | 295,195 | $ | (100,788 | ) | $ | — | $ | 194,407 | |||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | Foreign Currency Contracts — Citibank NA | $ | 1,318 | $ | (1,318 | ) | $ | — | $ | — | ||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 6,556 | (4,432 | ) | — | 2,124 | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 6,179 | — | — | 6,179 | ||||||||||||||
Foreign Currency Contracts — Societe Generale | 4,600 | — | — | 4,600 | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 28,675 | (13,546 | ) | — | 15,129 | |||||||||||||
Total | $ | 47,328 | $ | (19,296 | ) | $ | — | $ | 28,032 |
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Notes to the Financial Statements (cont.)
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Assets presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
FlexShares International Quality Dividend Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | 3,396 | $ | (1,230 | ) | $ | — | $ | 2,166 | ||||||||
Foreign Currency Contracts — Bank of New York | 2,501 | (2,501 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Citibank NA | 27,766 | (3,057 | ) | — | 24,709 | |||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 23,879 | (23,879 | ) | — | — | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | 3,828 | (3,828 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 12,787 | (12,659 | ) | — | 128 | |||||||||||||
Foreign Currency Contracts — Societe Generale | 19,008 | — | — | 19,008 | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | — | — | — | — | ||||||||||||||
Total | $ | 93,165 | $ | (47,154 | ) | $ | — | $ | 46,011 | |||||||||
FlexShares International Quality Dividend Defensive Index Fund | Foreign Currency Contracts — Bank of New York | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Citibank NA | 488 | — | — | 488 | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | — | — | — | — | ||||||||||||||
Total | $ | 488 | $ | — | $ | — | $ | 488 | ||||||||||
FlexShares Ready Access Variable Income Fund | Repurchase Agreements — SG Americas Securities LLC | $ | 10,000,000 | $ | (10,000,000 | ) | $ | — | $ | — | ||||||||
$ | 10,000,000 | $ | (10,000,000 | ) | $ | — | $ | — | ||||||||||
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Liabilities presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | Foreign Currency Contracts — Bank of New York | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Citibank NA | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (4,954 | ) | 1,415 | (3,539 | ) | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | (181 | ) | 181 | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (16,662 | ) | 16,662 | — | — | |||||||||||||
Total | $ | (21,797 | ) | $ | 18,258 | $ | — | $ | (3,539 | ) | ||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | Foreign Currency Contracts — BNP Paribas SA | $ | (769 | ) | $ | — | $ | — | $ | (769 | ) | |||||||
Foreign Currency Contracts — Citibank NA | (4,872 | ) | — | — | (4,872 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (16 | ) | — | — | (16 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (217 | ) | 217 | — | — | |||||||||||||
Total | $ | (5,874 | ) | $ | 217 | $ | — | $ | (5,657 | ) | ||||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | Foreign Currency Contracts — Toronto-Dominion Bank (The) | $ | (152,377 | ) | $ | 147,768 | $ | — | $ | (4,609 | ) | |||||||
Total | $ | (152,377 | ) | $ | 147,768 | $ | — | $ | (4,609 | ) |
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Notes to the Financial Statements (cont.)
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Liabilities presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | Foreign Currency Contracts — Citibank NA | $ | (36,871 | ) | $ | 18,952 | $ | — | $ | (17,919 | ) | |||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (6,651 | ) | 6,651 | — | — | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (20,249 | ) | 12,971 | — | (7,278 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (29,223 | ) | 29,223 | — | — | |||||||||||||
Total | $ | (92,994 | ) | $ | 67,797 | $ | — | $ | (25,197 | ) | ||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | Foreign Currency Contracts — Bank of New York | $ | (24,556 | ) | $ | 1,590 | $ | — | $ | (22,966 | ) | |||||||
Foreign Currency Contracts — Citibank NA | (58,693 | ) | 834 | — | (57,859 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (44,253 | ) | 42,785 | — | (1,468 | ) | ||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (2,265 | ) | — | — | (2,265 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (2,376 | ) | 2,376 | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | (49,867 | ) | 24,815 | — | (25,052 | ) | ||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (28,388 | ) | 28,388 | — | — | |||||||||||||
Total | $ | (210,398 | ) | $ | 100,788 | $ | — | $ | (109,610 | ) | ||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | Foreign Currency Contracts — Citibank NA | $ | (16,649 | ) | $ | 1,318 | $ | — | $ | (15,331 | ) | |||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (4,432 | ) | 4,432 | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (13,546 | ) | 13,546 | — | — | |||||||||||||
Total | $ | (34,627 | ) | $ | 19,296 | $ | — | $ | (15,331 | ) | ||||||||
FlexShares International Quality Dividend Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | (1,230 | ) | $ | 1,230 | $ | — | $ | — | ||||||||
Foreign Currency Contracts — Bank of New York | (15,852 | ) | 2,501 | — | (13,351 | ) | ||||||||||||
Foreign Currency Contracts — Citibank NA | (3,057 | ) | 3,057 | — | — | |||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (44,806 | ) | 23,879 | — | (20,927 | ) | ||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (7,684 | ) | 3,828 | — | (3,856 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (12,659 | ) | 12,659 | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (90 | ) | — | — | (90 | ) | ||||||||||||
Total | $ | (85,378 | ) | $ | 47,154 | $ | — | $ | (38,224 | ) | ||||||||
FlexShares International Quality Dividend Defensive Index Fund | Foreign Currency Contracts — Bank of New York | $ | (1 | ) | $ | — | $ | — | $ | (1 | ) | |||||||
Foreign Currency Contracts — Citibank NA | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | (82 | ) | — | — | (82 | ) | ||||||||||||
Total | $ | (83 | ) | $ | — | $ | — | $ | (83 | ) |
294 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
The following tables indicate the location of derivative-related items on the Statements of Assets and Liabilities as well as the effect of derivative instruments on the Statements of Operations during the reporting period.
Fair Value of Derivative Instruments as of April 30, 2017
Derivatives by risk type | Counterparty | Statements of Assets and Liabilities Location | Fund | Value | ||||||||
Equity Index Futures Contracts | | Citibank NA, Merrill Lynch UBS AG |
| Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 145,132 | |||||
Equity Index Futures Contracts | | Citibank NA and UBS AG | | Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 155,506 | ||||||
Equity Index Futures Contracts | | Citibank NA and UBS AG | | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | (23,579 | ) | |||||
Foreign Currency Contracts | | Bank of New York, Citibank Goldman Morgan Stanley, and Toronto- Dominion Bank (The |
) | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 101,882 | ||||||
Foreign Currency Contracts | | Goldman Sachs & Co., Morgan Stanley and Toronto- Dominion Bank (The |
| Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | (21,797 | ) |
FLEXSHARES SEMIANNUAL REPORT | 295 |
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Notes to the Financial Statements (cont.)
Derivatives by risk type | Counterparty | Statements of Assets and Liabilities Location | Fund | Value | ||||||||
Equity Index Futures Contracts | | Citibank NA, Goldman Merrill and UBS AG |
| Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | $ | 166,894 | |||||
Foreign Currency Contracts | | Goldman Sachs & Co., | | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 6,167 | ||||||
Foreign Currency Contracts | | BNP Paribas SA, Citibank JPMorgan Morgan | | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | (5,874 | ) | |||||
Foreign Currency Contracts | | Toronto- Dominion Bank (The) | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 147,768 | |||||||
Foreign Currency Contracts | | Toronto- Dominion Bank (The) | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | (152,377 | ) | ||||||
Foreign Currency Contracts | | Citibank NA, Goldman JPMorgan Toronto- Dominion Bank (The |
) | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 132,990 |
296 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
Derivatives by risk type | Counterparty | Statements of Assets and Liabilities Location | Fund | Value | ||||||||
Foreign Currency Contracts | | Citibank NA, Goldman JPMorgan and Toronto- Dominion Bank (The |
) | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | $ | (92,994 | ) | ||||
Equity Index Futures Contracts | | Citibank NA and UBS AG | | Assets — Unrealized appreciation on futures contracts* | FlexShares® STOXX® Global ESG Impact Index Fund | 1,913 | ||||||
Equity Index Futures Contracts | | Citibank NA and UBS AG | | Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar Global Upstream Natural Resources Index Fund | 156,041 | ||||||
Equity Index Futures Contracts | | Citibank NA and UBS AG | | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Morningstar Global Upstream Natural Resources Index Fund | (27,405 | ) | |||||
Foreign Currency Contracts | | Bank of New York, Citibank Goldman Morgan Stanley, and Toronto- Dominion Bank (The |
) | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | 295,195 |
FLEXSHARES SEMIANNUAL REPORT | 297 |
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Notes to the Financial Statements (cont.)
Derivatives by risk type | Counterparty | Statements of Assets and Liabilities Location | Fund | Value | ||||||||
Foreign Currency Contracts | | Bank of New York, Citibank Goldman Morgan Stanley, and Toronto- Dominion Bank (The |
) | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | $ | (210,398 | ) | ||||
Equity Index Futures Contracts | | Citibank NA and Merrill Lynch | | Assets — Unrealized appreciation on futures contracts* | FlexShares STOXX® Global Broad Infrastructure Index Fund | 90,087 | ||||||
Equity Index Futures Contracts | | Citibank NA | | Liabilities — Unrealized depreciation on futures contracts* | FlexShares STOXX® Global Broad Infrastructure Index Fund | (6,289 | ) | |||||
Foreign Currency Contracts | | Citibank NA, Goldman Morgan Stanley, and Toronto- Dominion Bank (The |
) | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | 47,328 |
298 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
Derivatives by risk type | Counterparty | Statements of Assets and Liabilities Location | Fund | Value | ||||||||
Foreign Currency Contracts | | Citibank NA, Goldman and Toronto- Dominion Bank (The |
) | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | $ | (34,627 | ) | ||||
Equity Index Futures Contracts | | Citibank NA | | Assets — Unrealized appreciation on futures contracts* | FlexShares Global Quality Real Estate Index Fund | 37,607 | ||||||
Equity Index Futures Contracts | | Citibank NA | | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Global Quality Real Estate Index Fund | (1,382 | ) | |||||
Equity Index Futures Contracts | | Citibank NA | | Assets — Unrealized appreciation on futures contracts* | FlexShares Quality Dividend Index Fund | 105,695 | ||||||
Equity Index Futures Contracts | | Citibank NA and Merrill Lynch | | Assets — Unrealized appreciation on futures contracts* | FlexShares Quality Dividend Defensive Index Fund | 33,967 | ||||||
Equity Index Futures Contracts | | Citibank NA | | Assets — Unrealized appreciation on futures contracts* | FlexShares Quality Dividend Dynamic Index Fund | 8,317 | ||||||
Equity Index Futures Contracts | | Citibank NA and Merrill Lynch | | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Index Fund | 214,193 | ||||||
Equity Index Futures Contracts | | Citibank NA | | Liabilities — Unrealized depreciation on futures contracts* | FlexShares International Quality Dividend Index Fund | (30,728 | ) | |||||
Foreign Currency Contracts | | Bank of Montreal, New York, Citibank Goldman JPMorgan Stanley and Societe |
| Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares International Quality Dividend Index Fund | 93,165 |
FLEXSHARES SEMIANNUAL REPORT | 299 |
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Notes to the Financial Statements (cont.)
Derivatives by risk type | Counterparty | Statements of Assets and Liabilities Location | Fund | Value | ||||||||
Foreign Currency Contracts | | Bank of Montreal, New York, Citibank Goldman JPMorgan Stanley and Toronto- Dominion Bank (The |
) | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares International Quality Dividend Index Fund | $ | (85,378 | ) | ||||
Equity Index Futures Contracts | | Citibank NA | | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Defensive Index Fund | 48,343 | ||||||
Foreign Currency Contracts | | Citibank NA | | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares International Quality Dividend Defensive Index Fund | 488 | ||||||
Foreign Currency Contracts | | Bank of New York, and Stanley |
| Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares International Quality Dividend Defensive Index Fund | (83 | ) | |||||
Equity Index Futures Contracts | | Citibank NA | | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Dynamic Index Fund | 29,161 | ||||||
Interest Rate Futures Contracts | UBS AG | Assets — Unrealized depreciation on futures contracts* | FlexShares Core Select Bond Fund | (3,175 | ) |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
300 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
The Effect of Derivative Instruments on the Statements of Operations for the Period Ended April 30, 2017
Derivatives by risk type | Location of Gain or (Loss) on Derivatives on the Statements of Operations | Fund | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) on Derivatives | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 1,732,013 | $ | 384,849 | ||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 670,984 | (23,330 | ) | |||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 87,979 | 32,394 | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | (10,942 | ) | 177,863 | |||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | (3,821 | ) | 4,538 | |||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | (1,099,541 | ) | (10,917 | ) | ||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | (308 | ) | — |
FLEXSHARES SEMIANNUAL REPORT | 301 |
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Notes to the Financial Statements (cont.)
Derivatives by risk type | Location of Gain or (Loss) on Derivatives on the Statements of Operations | Fund | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) on Derivatives | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | $ | (1,562,990 | ) | $ | 129,439 | |||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares STOXX® US ESG Impact Index Fund | (17 | ) | — | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares STOXX® Global ESG Impact Index Fund | 6,818 | 1,882 | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | 1,480,278 | (18,033 | ) | |||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | (24,392 | ) | 157,739 | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | 625,933 | 55,129 | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | 1,477 | 16,499 | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Global Quality Real Estate Index Fund | 187,214 | 39,332 |
302 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Notes to the Financial Statements (cont.)
Derivatives by risk type | Location of Gain or (Loss) on Derivatives on the Statements of Operations | Fund | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) on Derivatives | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Global Quality Real Estate Index Fund | $ | 36,692 | $ | (10,935 | ) | |||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Quality Dividend Index Fund | 1,507,726 | 133,081 | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Quality Dividend Defensive Index Fund | 283,180 | 52,290 | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Quality Dividend Dynamic Index Fund | 94,401 | 9,552 | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares International Quality Dividend Index Fund | 466,498 | 96,560 | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares International Quality Dividend Index Fund | (67,007 | ) | 20,901 | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares International Quality Dividend Defensive Index Fund | 38,265 | 77,001 | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares International Quality Dividend Defensive Index Fund | 645 | (15,171 | ) |
FLEXSHARES SEMIANNUAL REPORT | 303 |
Table of Contents
Notes to the Financial Statements (cont.)
Derivatives by risk type | Location of Gain or (Loss) on Derivatives on the Statements of Operations | Fund | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) on Derivatives | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares International Quality Dividend Dynamic Index Fund | $ | 22,415 | $ | 33,919 | ||||||
Interest Rate Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Core Select Bond Fund | (1,273 | ) | (3,175 | ) |
At April 30, 2017, the volume of derivative activities, which represents activities throughout the period, was as follows:
Foreign Exchange Contracts | Equity Contracts | |||||||||||||||
Fund | Number of Trades | Average Notional Amount | Number of Trades | Average Notional Amount | ||||||||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | — | $ | — | 146 | $ | 416,275 | ||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 120 | 634,633 | 106 | 231,315 | ||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 100 | 121,563 | 46 | 214,547 | ||||||||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 305 | 630,052 | — | — | ||||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 343 | 1,279,004 | 1 | 211,380 | ||||||||||||
FlexShares STOXX® US ESG Impact Index Fund | — | — | 1 | 118,627 | ||||||||||||
FlexShares STOXX® Global ESG Impact Index Fund | — | — | 4 | 43,613 | ||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 269 | 1,198,444 | 319 | 368,685 | ||||||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 101 | 276,374 | 139 | 189,820 | ||||||||||||
FlexShares Global Quality Real Estate Index Fund | 30 | 170,077 | 57 | 138,257 | ||||||||||||
FlexShares Quality Dividend Index Fund | — | — | 71 | 1,081,825 | ||||||||||||
FlexShares Quality Dividend Defensive Index Fund | — | — | 50 | 321,730 | ||||||||||||
FlexShares Quality Dividend Dynamic Index Fund | — | — | 26 | 171,547 | ||||||||||||
FlexShares International Quality Dividend Index Fund | 171 | 314,667 | 156 | 157,186 | ||||||||||||
FlexShares International Quality Dividend Defensive Index Fund | 62 | 161,180 | 45 | 105,637 | ||||||||||||
FlexShares International Quality Dividend Dynamic Index Fund | — | — | 30 | 76,885 | ||||||||||||
FlexShares Core Select Bond Fund | — | — | 5 | 120,278 |
304 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Notes to the Financial Statements (cont.)
Taxes and Distributions
Each Fund has qualified and intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net capital gains to shareholders. Accordingly, no provision for federal and state income taxes is required in the financial statements.
As of October 31, 2016, management of the Funds has reviewed all open tax years and major jurisdictions and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. On an ongoing basis management will monitor the tax positions taken to determine if adjustment to conclusions are necessary based on factors including but not limited to further implementation on guidance expected from FASB and on-going analysis of tax law, regulation, and interpretations thereof.
3. Investment Transactions and Related Income and Expense
Throughout the reporting period, investment transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, investment transactions are accounted for on the trade date on the last business day of the reporting period.
Interest income is recognized on an accrual basis. Bond discount is accreted and premium is amortized over the expected life of each applicable security using the yield to maturity method. Dividend income is recorded on the ex-dividend date, or as soon as information is available. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds.
Each Index Fund except the FlexShares iBoxx 3-Year Target Duration TIPs Index Fund and the FlexShares iBoxx 5-Year
Target Duration TIPs Index Fund, may hold the securities of real estate investment trusts (“REITs”). Distributions from such investments may be comprised of return of capital, capital gains and income. The actual character of amounts received during the year is not known until after the REIT’s fiscal year end. The Fund records the character of distributions received from REITs during the year based on estimates available. The characterization of distributions received by the Fund may be subsequently revised based on information received from the REITs after their tax reporting periods concluded.
All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which a Fund invests. These foreign taxes, if any, are paid by the Funds and disclosed in the Statements of Operations. Foreign taxes payable, if any, are reflected in the Funds’ Statements of Assets and Liabilities.
Expenses directly attributable to a Fund are charged to that Fund, while expenses which are attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or another reasonable basis.
4. Investment Advisory Fees
NTI serves as the Investment Adviser of the Funds pursuant to the Investment Advisory Agreement. The Investment Adviser is responsible for making investment decisions for the Funds and for placing purchase and sale orders for portfolio securities, subject to the general supervision of the Trust’s Board.
As compensation for its advisory services and assumption of Fund expenses, NTI is entitled to a unitary management fee, computed daily and payable monthly, at the annual rates set forth in the table below (expressed as a percentage of each Fund’s respective average daily net assets).
From the unitary management fee, NTI pays most of the expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services (“Covered Expenses”). Covered Expenses do not include the following fees under the Investment Advisory Agreement: interest expenses, brokerage commissions and other trading expenses, fees and expenses of the independent trustees and
FLEXSHARES SEMIANNUAL REPORT | 305 |
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Notes to the Financial Statements (cont.)
their independent legal counsel, taxes and other extraordinary costs such as litigation and other expenses not incurred in the ordinary course of business.
The unitary management fee rate payable by each Fund is set forth in the following table:
Fund | Unitary Management Fee | |||
FlexShares Morningstar US Market Factor Tilt Index Fund | 0.25 | % | ||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 0.39 | % | ||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 0.59 | % | ||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 0.44 | % | ||
FlexShares Currency Hedged EM Morningstar Factor Tilt Index Fund | 0.64 | % | ||
FlexShares US Quality Large Cap Index Fund | 0.32 | % | ||
FlexShares STOXX® US ESG Impact Index Fund | 0.32 | % | ||
FlexShares STOXX® Global ESG Impact Index Fund | 0.42 | % | ||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 0.46 | % | ||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 0.47 | % | ||
FlexShares Global Quality Real Estate Index Fund | 0.45 | % | ||
FlexShares Real Assets Allocation Index Fund | 0.57 | % | ||
FlexShares Quality Dividend Index Fund | 0.37 | % | ||
FlexShares Quality Dividend Defensive Index Fund | 0.37 | % | ||
FlexShares Quality Dividend Dynamic Index Fund | 0.37 | % | ||
FlexShares International Quality Dividend Index Fund | 0.47 | % | ||
FlexShares International Quality Dividend Defensive Index Fund | 0.47 | % | ||
FlexShares International Quality Dividend Dynamic Index Fund | 0.47 | % |
Fund | Unitary Management Fee | |||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 0.20 | % | ||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 0.20 | % | ||
FlexShares Disciplined Duration MBS Index Fund | 0.20 | % | ||
FlexShares Credit-Scored US Corporate Bond Index Fund | 0.22 | % | ||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 0.22 | % | ||
FlexShares Ready Access Variable Income Fund | 0.25 | % | ||
FlexShares Core Select Bond Fund | 0.35 | % |
The Investment Adviser has contractually agreed until March 1, 2020 in the case of the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund and FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund and March 1, 2018 in the case of the FlexShares Real Assets Allocation Index Fund to waive Management Fees or reimburse certain expenses in an amount equal to the acquired fund fees and expenses (“AFFE”) attributable to each Fund’s investments in their respective Underlying Fund(s). In the case of the FlexShares Core Select Bond Fund, the Investment Adviser has contractually agreed to waive Management Fees or reimburse certain expenses in an amount equal to the sum of (a) any AFFE, if any, incurred by the Fund that are attributable to the Fund’s investment in Acquired Funds managed by NTI or an investment adviser controlling, controlled by, or under common control with NTI (“Affiliated Funds”); and (b) 0.05% or such lesser amount in AFFE incurred by the Fund that are attributable to the Fund’s investment in Acquired Funds that are not Affiliated Funds, until March 1, 2018. After these dates, the Investment Adviser and a Fund may mutually agree to extend the contractual arrangements. The Fund’s Board of Trustees may terminate the contractual arrangements at any time if it determines that it is in the best interest of a Fund and its shareholders. AFFE are expenses incurred indirectly by the Fund through its ownership of shares in other investment companies. Because AFFE are not direct expenses of the Fund, they are not reflected on the Fund’s financial statements.
306 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
The Investment Adviser may voluntarily waive additional management fees. Amounts waived by the Investment Adviser may not be recouped by the Investment Adviser. As of the period ended April 30, 2017, no management fees had been voluntarily waived.
5. Administration Fees
JPMorgan Chase Bank, N.A. (“the Administrator”) serves as administrator of the Funds. The Administrator provides certain administrative services to the Funds. For these services, the Administrator is entitled to certain fees and reasonable out-of-pocket expenses. These fees and expenses are Covered Expenses as defined above.
6. Custodian Fees
JPMorgan Chase Bank, N.A. (the “Custodian”) acts as custodian for the Funds in accordance with a Global Custody Agreement. The Custodian holds cash, securities and other assets of the Funds as required by the 1940 Act. As compensation for the services rendered under the agreement, the Custodian is entitled to fees and reasonable out-of-pocket expenses. These fees and expenses are Covered Expenses as defined above.
7. Trustees Fees
The Trust compensates each Trustee who is not an officer, director or employee of Northern Trust Corporation, or its subsidiaries, for his or her services as a Trustee of the Trust and as a member of Board committees.
NTI has contractually agreed with each Fund to reimburse the fees and expenses of the Trust’s independent trustees and their independent legal counsel paid by each Fund until at least March 1, 2018. After this date, NTI and each Fund may mutually agree to extend the contractual arrangement. The Board of Trustees may terminate the contractual arrangement at any time if it determines that it is in the best interest of the Fund and its shareholders.
The Trust has adopted a deferred compensation plan (“DC Plan”) for its Trustees who are not officers of Northern Trust or NTI. Under the DC Plan, an Independent Trustee may elect to defer all or a portion of their compensation. The amount deferred is adjusted periodically based upon the
performance of the investment options selected by the Trustees. The investment options currently under the DC Plan are the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, and the FlexShares Ready Access Variable Income Fund. Expenses related to the DC Plan are stated on the Statements of Operations.
8. Distribution and Service Plan
Foreside Fund Services, LLC (the “Distributor”) serves as the Funds’ distributor and distributes Creation Units (as defined in Note 9) for each Fund on an agency basis. The Distributor does not receive a fee from the Funds for its distribution services. However, it receives compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
The Trust has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. Payments to financial intermediaries under the Plan are tied directly to their own out-of-pocket expenses. As of this date, the Plan has not been implemented with respect to the Funds. The Plan may not be implemented without further Board of Trustees approval. The maximum distribution fee is 0.25% of each Fund’s respective average daily net assets under the Plan. The Funds did not pay any 12b-1 fees during the fiscal year.
9. Issuance and Redemption of Fund Shares
Each Fund issues and redeems shares only to Authorized Participants (typically market makers, large investors and institutions) in exchange for the deposit or delivery of a basket of assets (securities and/or cash), in large blocks known as Creation Units, each of which is comprised of a specified number of shares.
Retail investors may only purchase and sell fund shares on a national securities exchange through a broker-dealer and such transactions may be subject to customary commission rates imposed by the broker-dealer.
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Notes to the Financial Statements (cont.)
Authorized Participants may pay transaction fees to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Transaction fees remaining in the Funds were as follows:
Fund | As of April 30, 2017 | As of October 31, 2016 | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 9,000 | $ | 10,500 | ||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 120,000 | 20,000 | ||||||
FlexShares Morningstar Emerging Market Factor Tilt Index Fund | 150,000 | 25,000 | ||||||
FlexShares US Quality Large Cap Index Fund | 2,500 | 500 | ||||||
FlexShares STOXX® US ESG Impact Index Fund | 750 | 0 | ||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 57,000 | 39,000 | ||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 18,000 | 10,000 | ||||||
FlexShares Global Quality Real Estate Index Fund | 4,000 | 6,000 | ||||||
FlexShares Quality Dividend Index Fund | 16,750 | 16,000 | ||||||
FlexShares Quality Dividend Defensive Index Fund | 4,500 | 7,500 | ||||||
FlexShares Quality Dividend Dynamic Index Fund | 750 | 750 | ||||||
FlexShares International Quality Dividend Index Fund | 45,000 | 35,000 | ||||||
FlexShares International Quality Dividend Defensive Index Fund | 0 | 10,000 | ||||||
FlexShares International Quality Dividend Dynamic Index Fund | 10,000 | 0 | ||||||
FlexShares Disciplined Duration MBS Index Fund | 1,200 | 800 | ||||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 500 | 0 | ||||||
FlexShares Ready Access Variable Income Fund | 1,400 | 700 |
The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund and the FlexShares Core Select Bond Fund do not charge creation unit transaction fees.
10. Investment Transactions
For the six months ended April 30, 2017, the FlexShares iBoxx 3-Year Target Duration TIPS Index, FlexShares iBoxx 5-Year Target Duration TIPS Index and FlexShares Disciplined Duration MBS Index Funds invested solely in U.S. Government securities. The cost of securities purchased by each Fund and proceeds from sales of securities, excluding short-term securities, derivatives and in-kind transactions for the period ended April 30, 2017, were as follows:
Fund | Purchases | Sales | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 90,790,363 | $ | 84,431,242 | ||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 76,725,169 | 54,115,527 | ||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 132,810,114 | 47,663,787 | ||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 431,234 | 973,973 | ||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 724,363 | 1,658,408 | ||||||
FlexShares US Quality Large Cap Index Fund | 3,111,078 | 3,041,808 | ||||||
FlexShares STOXX® US ESG Impact Index Fund | 1,519,071 | 1,535,652 | ||||||
FlexShares STOXX® Global ESG Impact Index Fund | 1,871,048 | 1,874,485 | ||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 600,921,944 | 495,995,562 |
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Notes to the Financial Statements (cont.)
Fund | Purchases | Sales | ||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | $ | 59,555,102 | $ | 51,984,058 | ||||
FlexShares Global Quality Real Estate Index Fund | 57,550,786 | 59,310,875 | ||||||
FlexShares Real Assets Allocation Index Fund | 272,855 | 272,349 | ||||||
FlexShares Quality Dividend Index Fund | 599,962,948 | 596,516,964 | ||||||
FlexShares Quality Dividend Defensive Index Fund | 113,717,945 | 114,291,171 | ||||||
FlexShares Quality Dividend Dynamic Index Fund | 18,372,545 | 18,700,135 | ||||||
FlexShares International Quality Dividend Index Fund | 208,496,275 | 175,603,377 | ||||||
FlexShares International Quality Dividend Defensive Index Fund | 24,640,196 | 24,357,233 | ||||||
FlexShares International Quality Dividend Dynamic Index Fund | 18,109,177 | 11,325,717 | ||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 1,266,680,058 | 1,273,755,630 | ||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 325,161,511 | 329,339,059 | ||||||
FlexShares Disciplined Duration MBS Index Fund | 12,074,630 | 16,741,689 | ||||||
FlexShares Credit-Scored US Corporate Bond Index Fund | 19,710,969 | 14,964,475 | ||||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 4,102,926 | 6,830,569 |
Fund | Purchases | Sales | ||||||
FlexShares Ready Access Variable Income Fund* | $ | 76,288,049 | $ | 39,464,067 | ||||
FlexShares Core Select Bond Fund** | 1,137,124 | 1,108,715 |
* | Include $15,994,942 in purchases and $12,104,609 in sales in U.S. Government Securities. |
** | Include $371,080 in purchases and $371,920 in sales in U.S. Government Securities. |
11. In-Kind Transactions
During the period ended April 30, 2017, the Funds received securities in exchange for subscriptions of shares (subscriptions-in-kind). For the period ended April 30, 2017, the fair value of the securities received for subscriptions for each Fund was as follows:
Fund | Fair Value | |||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 95,832,003 | ||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 91,324,877 | |||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 15,471,439 | |||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 25,855,908 | |||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 7,391,540 | |||
FlexShares US Quality Large Cap Index Fund | 20,338,468 | |||
FlexShares STOXX® US ESG Impact Index Fund | 2,782,815 | |||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 1,270,006,141 | |||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 148,462,452 | |||
FlexShares Global Quality Real Estate Index Fund | 2,544,175 | |||
FlexShares Real Assets Allocation Index Fund | 1,307,322 | |||
FlexShares Quality Dividend Index Fund | 266,036,911 | |||
FlexShares Quality Dividend Defensive Index Fund | 30,760,931 |
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Notes to the Financial Statements (cont.)
Fund | Fair Value | |||
FlexShares Quality Dividend Dynamic Index Fund | $ | 9,199,812 | ||
FlexShares International Quality Dividend Index Fund | 119,044,072 | |||
FlexShares International Quality Dividend Defensive Index Fund | 5,529,509 | |||
FlexShares International Quality Dividend Dynamic Index Fund | 27,276,479 | |||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 187,823,770 | |||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 121,487,859 | |||
FlexShares Core Select Bond Fund* | 2,987,399 |
* | For the period November 18, 2016 (commencement of investment operations) through April 30, 2017. |
During the six-month period ended April 30, 2017, the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index and FlexShares iBoxx 5-Year Target Duration TIPS Index delivered securities in exchange for redemption of shares (redemptions-in-kind). For financial reporting purposes, the Funds recorded net realized gains and losses in connection with each transaction. For the six month period ended April 30, 2017, the fair value and realized gain (losses) of the securities transferred for redemptions for each Fund was as follows:
Fund | Fair Value | Net Realized Gains (Losses) | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 9,622,143 | $ | 4,653,966 | ||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 10,677,673 | 815,491 |
Fund | Fair Value | Net Realized Gains (Losses) | ||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | $ | 1,326,146 | $ | 348,676 | ||||
FlexShares US Quality Large Cap Index Fund | 4,198,671 | 511,317 | ||||||
FlexShares Quality Dividend Index Fund | 161,949,631 | 36,976,052 | ||||||
FlexShares Quality Dividend Defensive Index Fund | 1,982,980 | 480,325 | ||||||
FlexShares Quality Dividend Dynamic Index Fund | 1,950,820 | 396,083 | ||||||
FlexShares International Quality Dividend Defensive Index Fund | 5,287,582 | 304,893 | ||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 11,141,790 | 193,678 | ||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 3,755,999 | 60,855 |
12. Guarantees and Indemnifications
In the normal course of business each Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that provide general indemnifications. Additionally, under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. The Funds’ maximum exposure under these arrangements is unknown, as it involves possible future claims that may or may not be made against the Funds.
13. Subsequent Events
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
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As a shareholder, you incur two types of costs: (1) transaction costs for purchasing and selling shares and (2) ongoing costs, including advisory and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses
The actual expense examples are based on an investment of $1,000 invested at the beginning of a six month period and held through the period ended April 30, 2017.
The first line under each Fund in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The hypothetical expense examples are based on an investment of $1,000 invested at the beginning of a six month period and held through the period ended April 30, 2017.
The second line under each Fund in the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as brokerage commissions on purchases or sales of Fund shares. Therefore, the second line for each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning Account Value | Ending Account Value 04/30/17 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Morningstar US Market Factor Tilt Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,149.80 | $ | 1.33 | 0.25 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.55 | $ | 1.25 | 0.25 | % | ||||||||
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,114.00 | $ | 2.04 | 0.39 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.86 | $ | 1.96 | 0.39 | % | ||||||||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,099.30 | $ | 3.07 | 0.59 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.87 | $ | 2.96 | 0.59 | % |
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Fund Expenses (cont.)
Beginning Account Value | Ending Account Value 04/30/17 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund(a) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,134.70 | $ | 0.32 | 0.06 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.50 | $ | 0.30 | 0.06 | % | ||||||||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund(a) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,080.30 | $ | 0.31 | 0.06 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.50 | $ | 0.30 | 0.06 | % | ||||||||
FlexShares® US Quality Large Cap Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,131.70 | $ | 1.69 | 0.32 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.21 | $ | 1.61 | 0.32 | % | ||||||||
FlexShares® STOXX® US ESG Impact Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,133.40 | $ | 1.69 | 0.32 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.21 | $ | 1.61 | 0.32 | % | ||||||||
FlexShares® STOXX® Global ESG Impact Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,127.40 | $ | 2.22 | 0.42 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.71 | $ | 2.11 | 0.42 | % | ||||||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,074.40 | $ | 2.37 | 0.46 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.51 | $ | 2.31 | 0.46 | % | ||||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,071.00 | $ | 2.41 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® Global Quality Real Estate Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,050.90 | $ | 2.29 | 0.45 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.56 | $ | 2.26 | 0.45 | % | ||||||||
FlexShares® Real Assets Allocation Index Fund(a) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,060.40 | $ | 0.61 | 0.12 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.20 | $ | 0.60 | 0.12 | % | ||||||||
FlexShares® Quality Dividend Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,120.80 | $ | 1.95 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % | ||||||||
FlexShares® Quality Dividend Defensive Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,107.60 | $ | 1.93 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % |
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Fund Expenses (cont.)
Beginning Account Value | Ending Account Value 04/30/17 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Quality Dividend Dynamic Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,145.70 | $ | 1.97 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % | ||||||||
FlexShares® International Quality Dividend Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,113.50 | $ | 2.46 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® International Quality Dividend Defensive Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,086.30 | $ | 2.43 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® International Quality Dividend Dynamic Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,121.80 | $ | 2.47 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,005.40 | $ | 0.99 | 0.20 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.80 | $ | 1.00 | 0.20 | % | ||||||||
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.10 | $ | 0.99 | 0.20 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.80 | $ | 1.00 | 0.20 | % | ||||||||
FlexShares® Disciplined Duration MBS Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 989.80 | $ | 0.99 | 0.20 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.80 | $ | 1.00 | 0.20 | % | ||||||||
FlexShares® Credit-Scored US Corporate Bond Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 999.30 | $ | 1.09 | 0.22 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.70 | $ | 1.10 | 0.22 | % | ||||||||
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 991.00 | $ | 1.09 | 0.22 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.70 | $ | 1.10 | 0.22 | % | ||||||||
FlexShares® Ready Access Variable Income Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,004.40 | $ | 1.24 | 0.25 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.55 | $ | 1.25 | 0.25 | % | ||||||||
FlexShares® Core Select Bond Fund(a) (b) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,007.80 | $ | 0.75 | 0.17 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.95 | $ | 0.85 | 0.17 | % |
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Fund Expenses (cont.)
* | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the Underlying Fund(s) in which the Fund invests. |
(b) | The Fund commenced operations on November 18, 2016. Actual Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 161 divided by 365 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half year period). |
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Supplemental Information (Unaudited)
Principal Risks
As with any investment, you could lose all or part of your investment in a Fund, and the Fund’s performance could trail that of other investments. In addition to the discussion of the risks of certain of the Funds’ investments included in Note 2, some of the principal risks of investment in the Funds are summarized below. A more complete description of principal risks is included in each Fund’s Prospectus.
The following risks apply to all of the Funds:
Derivatives Risk
Changes in the value of a derivative instrument may not correlate perfectly with the underlying asset, rate or index, and the Funds could lose more than the principal amount invested.
Market Trading Risk
Each Fund’s shares are listed on a securities exchange, which presents risks including the potential lack of an active market for Fund shares, losses from trading in secondary markets, and disruption in the creation/redemption process of the Funds. Any of these factors may lead to the Funds’ shares trading at a premium or discount to NAV.
Valuation Risk
The sale price the Funds could receive for a security may differ from the Funds’ valuation of the security, particularly for securities that trade in low volume or volatile markets, or that are valued using a fair value methodology.
The following risk applies only to the Index Funds:
Tracking Error Risk
Tracking error risk is the risk that an Index Fund’s performance may vary substantially from the performance of the Underlying Index it tracks as a result of imperfect correlation between a Fund’s securities and those of the Underlying Index. Imperfect correlation may result from share purchases and redemptions, expenses, changes in the Underlying Indexes, asset valuations, foreign currency valuations, market impact, corporate actions (such as mergers and spinoffs), legal restrictions (such as tax-related diversification requirements that apply to the Funds but not to the Underlying Index) and timing variances, among other factors.
Calculation Methodology Risk
Each of the Index Funds is subject to Calculation Methodology Risk. The Fund’s Underlying Index relies on various sources of information to assess the criteria of issuers included in the Index, including information that may be based on assumptions and estimates. Neither the Fund, the Index Provider nor the Investment Adviser can offer assurances that the Index’s calculation methodology or sources of information will provide an accurate assessment of included issuers or correct valuation of securities, nor can they guarantee the availability or timeliness of the production of the Index.
The following risks apply to each Fund as disclosed:
Concentration Risk
Each of the Funds, except the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Disciplined Duration MBS Index Fund and the FlexShares Ready Access Variable Income
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Supplemental Information (cont.)
Fund is subject to Concentration Risk. To the extent that the investments of these Funds are concentrated in the securities of issuers in a particular region, country, market, industry, sector or asset class, the Funds may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that region, country, market, industry, sector or asset class. The Credit-Scored US Corporate Bond Index Fund and Credit-Scored US Long Corporate Bond Index Fund may be adversely impacted by events affecting the U.S. financials sector. The U.S. financials sector can be significantly affected by changes in interest rates, government regulation, the rate of corporate and consumer debt defaults, price competition, the availability and cost of capital funds and fallout from the housing and sub-prime mortgage crisis. This sector has experienced significant losses in the recent past, and the impact of more stringent capital requirements and of recent or future regulation on any individual financial company, or on the sector as a whole cannot be predicted.
Interest Rate/Maturity Risk
The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares Ready Access Variable Income Fund, and the FlexShares Core Select Bond Fund are subject to the risk that the value of the Funds’ fixed-income assets will decline because of rising interest rates. The magnitude of this decline will often be greater for longer-term fixed income securities than shorter-term fixed-income securities. Duration is a measure used to determine the sensitivity of security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates.
MLP Risk
The FlexShares STOXX® Global Broad Infrastructure Index Fund and the FlexShares Real Assets Allocation Index Fund (including through its investment in its Underlying Fund(s)) may invest in Master Limited Partnerships (MLPs). The Fund may not invest more than 25% of its net assets in MLPs. MLP Risk is the risk that accompanies an investment in MLP units. Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. MLPs that concentrate in a particular industry or a particular geographic region are subject to risks associated with such industry or region. The benefit derived from the Fund’s investment in MLPs is largely dependent on the MLPs being treated as partnerships for federal income tax purposes. If any of the MLPs owned by the Fund were treated as corporations for U.S. federal income tax purposes, the after-tax return to the Fund with respect to its investment in such MLPs would be materially reduced, which could cause a decline in the value of the Fund’s shares. The Fund must include its allocable share of the MLP’s taxable income in its taxable income, whether or not it receives a distribution of cash from the MLP. In such case, the Fund may have to liquidate securities to make required distributions to the Fund’s shareholders.
Non-diversification Risk
The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, and the FlexShares Ready Access Variable Income Fund (each a “Fund” and collectively the “Funds”) are non-diversified series of the Trust, pursuant to the 1940 Act. Fund performance may depend on the performance of a small number of issuers because the Funds may invest a large percentage of its assets in securities issued by or representing a small number of issuers.
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Supplemental Information (cont.)
Large Cap Risk
The FlexShares US Quality Large Cap Index Fund, FlexShares STOXX® US ESG Impact Index Fund, FlexShares STOXX® Global ESG Impact Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund are subject to the risk that returns on investments in stocks of large U.S. companies could trail the returns on investments in stocks of smaller and mid-sized companies.
Mid Cap Stock Risk
The FlexShares STOXX® US ESG Impact Index Fund and the FlexShares STOXX® Global ESG Impact Index Fund may invest in stocks of mid-sized companies which may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. Mid-sized companies may have limited product lines or financial resources, and may be dependent upon a particular niche of the market.
Mid and Small Cap Stock Risk
The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund (including through its investment in its Underlying Fund), FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund (including through its investment in its Underlying Fund), FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, and the FlexShares Real Assets Allocation Index Fund (including through its investment in its Underlying Fund(s)) may invest in stocks of smaller companies which may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. Small companies may have limited product lines or financial resources, or may be dependent upon a small or inexperienced management group, and their securities may trade less frequently and in lower volume than the securities of larger companies, which could lead to higher transaction costs. Generally the smaller the company size, the greater the risk.
Value Investing Risk
The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares Global Quality Real Estate Index Fund, and the FlexShares Real Assets Allocation Index Fund’s (including through its investment in its Underlying Fund(s)) investment in companies whose securities are believed to be undervalued, relative to their underlying profitability, may not appreciate in value as anticipated.
ESG Investment Risk
The FlexShares STOXX® US ESG Impact Index Fund and the FlexShares STOXX® Global ESG Impact Index Fund are subject to the risk that because the methodology of the Underlying Index selects and assigns weights to securities of issuers for nonfinancial reasons, the Fund may underperform the broader equity market or other funds that do not utilize ESG criteria when selecting investments.
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Global Natural Resource Industry Risk
The FlexShares Morningstar Global Upstream Natural Resources Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund) is subject to the risks associated with investment in the global natural resources sector in addition to the general risk of the stock market. The natural resources sector can significantly be affected by events relating to U.S. and foreign political and economic developments and environmental and other government regulations, as well as other factors including, but not limited to: commodity price volatility, technological developments and natural or man-made disasters. Declines in the demand for, or prices of, natural resources generally would be expected to contribute to declines in the value of the Fund’s equity securities. Such declines may occur quickly and without warning and may negatively impact the value of the Fund and your investment.
The following risks apply only to the FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund:
Dividend Risk
The Fund is subject to the risk that an issuer of stock held by the Fund may choose not to declare a dividend or the dividend rate might not remain at current levels. Dividend paying stocks might not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. The Fund’s performance during a broad market advance could suffer because dividend paying stocks may not experience the same capital appreciation as non-dividend paying stocks.
Volatility Risk
The Fund is subject to the risk that the actual level of volatility experienced by the Fund may be greater or lower than the targeted overall volatility of the Underlying Index. Although the Underlying Index is designed to have a targeted overall volatility, there is no guarantee that it will have the targeted overall volatility. The Fund will continue to seek to track the Underlying Index even if the Underlying Index does not have the targeted overall volatility. There is also the risk that the Fund may experience volatility greater or lower than that of the Underlying Index as a result of tracking error. A portfolio of securities with greater volatility is generally considered to have a higher risk profile than a portfolio with lower volatility.
The following risks apply to the FlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund):
Interest Rate Risk
The Fund is subject to the risk that rising interest rates may adversely affect the Fund. Increases in interest rates typically lower the present value of a REIT’s future earnings stream, and may make financing property purchases and improvements more costly. Because the market price of REIT stocks may change based upon investors’ collective perceptions of future earnings, the value of the Fund may decline when investors anticipate or experience rising interest rates.
Real Estate Securities Risk
The Fund is subject to the risks associated with investment in the real estate sector in addition to the general risk of the stock market. Investing in securities of real estate companies will make the Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general, as well as risks that relate specifically to the way in which real estate companies are organized and operated. Real estate companies may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities markets. The value of real estate securities may
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underperform other sectors of the economy or broader equity markets. To the extent that the Fund concentrates its investments in the real estate sector, it may be subject to greater risk of loss than if it were diversified across different industry sectors.
Real Estate Investment Trust (REIT) Risk
The Fund is subject to the risk that the Fund’s investments will be affected by factors affecting REITs and the real estate sector generally. Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs whose underlying properties are concentrated in a particular industry or geographic region are also subject to risks affecting such industries and regions. By investing in REITs through the Fund, a shareholder will bear expenses of the REITs in addition to expenses of the Fund.
The following risk applies only to the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund, and the FlexShares Core Select Bond Fund:
Fund of Funds Risk
The Fund is subject to the risk that the Fund’s investment performance largely depends on the investment performance of the Underlying Fund(s) in which it primarily invests. The Fund’s NAV will change with changes in the value of the Underlying Fund(s) and other securities in which the Fund invests based on their market valuations.
An investment in the Fund will entail more costs and expenses than direct investments in the Underlying Fund(s). The Fund will indirectly pay a proportional share of the expenses of the Underlying Fund(s) in which it invests (including operating expenses and management fees), in addition to the fees and expenses it pays directly. As the Fund’s allocation to an Underlying Fund changes from time to time, or to the extent that the expense ratio of an Underlying Fund changes, the weighted average operating expenses borne by the Fund may increase or decrease.
The following risk applies only to the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund and the FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund:
Currency Hedging Risk
The Fund is subject to the risk that the Fund’s hedging transactions will not be effective. The Fund enters into foreign currency forward contracts designed to offset the Fund’s currency exposure of non-U.S. dollar denominated securities included in the Underlying Index against the U.S. dollar. These contracts may not be successful. To the extent the Fund’s foreign currency contracts are not successful, the U.S. dollar value of your investment in the Fund may go down. Because the Fund’s currency hedge is reset on a monthly basis, currency risk can develop or increase intra-month. Furthermore, while the Fund is designed to hedge against currency fluctuations, it is possible that a degree of currency exposure may remain even at the time a hedging transaction is implemented. Currency exchange rates can be very volatile and can change quickly and unpredictably. Therefore, the value of a investment in the Fund may also go up or down quickly and unpredictably and investors may lose money. In addition, a Fund’s currency hedging activities may involve frequent trading of currency instruments, which may increase transaction costs and cause the Fund’s return to deviate from the Underlying Index.
In seeking to track the performance of the Underlying Index, the Fund will attempt to hedge the currency exposure of non-U.S. dollar denominated securities held in its portfolio by investing in foreign currency forward contracts, which may include non-deliverable foreign currency forward contracts (“NDFs”). NDFs on currencies are often less liquid than deliverable forward currency contracts. A lack of liquidity in NDFs of the hedged currency could result in the Fund being unable to
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structure its hedging transactions as intended. In addition, NTI may seek to limit the size of the Fund in order to attempt to reduce a situation where the Fund is unable to obtain sufficient liquidity in an underlying currency to implement its investment objective.
Hedging Risk
The FlexShares Core Select Bond Fund is subject to the risk that the Fund’s short positions in U.S. Treasury futures and transactions in interest rate swaps will not completely eliminate interest rate risk of long positions in bonds. In certain falling interest rate environments, the Fund’s hedging strategy could result in disproportionately larger losses in the short U.S. Treasury futures and interest rate swaps positions as compared to gains in the long bond positions attributable to interest rate changes.
Corporate Bond Risk
The FlexShares Credit-Scored US Corporate Bond Index Fund and the FlexShares Credit-Scored US Long Corporate Bond Index Fund invest primarily in bonds issued by corporations. Corporate debt securities are subject to the risk of the issuer’s inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. When interest rates rise, the value of corporate debt can be expected to decline. Debt securities with longer maturities tend to be more sensitive to interest rate movements than those with shorter maturities.
The following risks apply to the FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares Ready Access Variable Income Fund, and the FlexShares Core Select Bond Fund:
Credit (or Default) Risk
The Fund is subject to the risk that the inability or unwillingness of an issuer or guarantor of a fixed-income security, or a counterparty to a TBA, repurchase or other transaction, to meet its payment or other financial obligations will adversely affect the value of the Fund’s investments and its returns. Changes in the credit rating of a debt security held by the Fund could have a similar effect.
Debt Extension Risk
The Fund is subject to the risk that an issuer will exercise its right to pay principal on an obligation held by the Fund (such as a mortgage-backed security) later than expected. This may happen during a period of rising interest rates. Under these circumstances, the value of the obligation will decrease and the Fund will suffer from the inability to invest in higher yielding securities.
Liquidity Risk
The Fund is subject to the risk that certain portfolio securities may be less liquid than others, which may make them difficult or impossible to sell at the time and the price that the Fund would like, adversely affecting the value of the Fund’s investments and its returns.
Prepayment (or Call) Risk
The Fund is subject to the risk that prepayment of the underlying mortgages or other collateral of some fixed-income securities may result in a decreased rate of return and a decline in value of those securities.
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Supplemental Information (cont.)
The following risks apply to the FlexShares Disciplined Duration MBS Index Fund, FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund:
U.S. Government Securities Risk
The Fund is subject to the risk that the U.S. government will not provide financial support to its agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law. Many U.S. government securities that may be purchased by the Fund are not backed by the full faith and credit of the United States. It is possible that the issuers of such securities will not have the funds to meet their payment obligations in the future.
Mortgage Related and Other Asset-Backed Risks
The FlexShares Disciplined Duration MBS Index Fund is subject to the risks of investing in mortgage-related and other asset-backed securities, including Interest Rate/Maturity Risk, Debt Extension Risk and Prepayment (or Call) Risk.
The following risk applies to the FlexShares Disciplined Duration MBS Index Fund and the FlexShares Core Select Bond Fund:
Mortgage Backed Pass-Through Securities Risk
The Fund is subject to the risk of investing in mortgage-backed securities issued by a U.S. Agency. These securities may not be backed by the full faith and credit of the U.S. government. Mortgage-backed securities are subject to Credit (or Default) Risk, Interest Rate/ Maturity Risk, Debt Extension Risk and Prepayment (or Call) Risk. Because of these risks, mortgage-backed securities react differently to changes in interest rates than other bonds. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities.
The following risk applies to the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, Fund FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund FlexShares Ready Access Variable Income Fund, and the FlexShares Core Select Bond Fund:
Financial Sector Risk
The Fund is subject to the risk that the Fund will be impacted by events affecting the U.S. and/or non-U.S. financial sectors if it invests a relatively large percentage of its assets in those sectors, adversely affecting the Fund’s performance. The U.S. and non-U.S. financial sectors can be significantly affected by changes in interest rates, government regulation, the rate of corporate and consumer debt defaulted, price competition, the availability and cost of capital funds and fallout from the housing and sub-prime mortgage crisis. In 2008 and 2009, the U.S. financial sector was significantly impacted by bankruptcies and consolidations of major financial firms. Events affecting the U.S. and non-U.S. financial sectors have had, and may continue to have, a significant negative impact on the valuations and stock prices of companies in this sector and have increased the volatility of investments in those sectors.
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The following risk applies to the FlexShares STOXX US ESG Impact Index Fund and the FlexShares US Quality Large Cap Index Fund:
Information Technology Sector Risk
The Fund is subject to the risk that the Fund will be impacted by events affecting the U.S. information technology sector if it invests a relatively large percentage of its assets in that sector, adversely affecting the Fund’s price.
Premium/Discount Information
Information about the differences between the daily market prices on secondary markets for shares of the Funds and the Funds’ net asset values for various time periods, as applicable, is available by visiting the Funds’ website at www.flexshares.com.
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For More Information (Unaudited)
Portfolio Holdings
FlexShares® Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
Proxy Voting
FlexShares® Trust Proxy Voting Policies and Procedures are available upon request and without charge by calling 1-855-FLEXETF (1-855-353-9383) or by visiting the Funds’ Web site www.flexshares.com or the SEC’s Web site at sec.gov. Each Fund’s portfolio securities voting record for the 12-month period ended June 30 is available upon request and without charge by calling 1-855-FLEXETF (1-855-353-9383) or by visiting the SEC’s Web site at sec.gov.
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FlexShares® Trust
50 S. LaSalle Street
Chicago, IL 60603
800.595.9111
www.flexshares.com
FlexShares® is a registered trademark of NTI. Morningstar® is a registered trademark of Morningstar, Inc. (“Morningstar”). Morningstar® US Market Factor Tilt IndexSM, Morningstar® Developed Markets ex-US Factor Tilt IndexSM, Morningstar® Emerging Markets Factor Tilt IndexSM, Morningstar® Developed Markets ex-US Factor Tilt Hedged IndexSM, Morningstar® Emerging Markets Factor Tilt Hedged IndexSM and Morningstar® Global Upstream Natural Resources IndexSM are service marks of Morningstar, Inc. STOXX and its licensors (the “Licensors”) have no relationship to FlexShares® Trust other than the licensing of the STOXX® USA ESG Impact Index, STOXX® Global ESG Impact Index and STOXX® Global Broad Infrastructure Index and the related trademarks for use in connection with the FlexShares® STOXX® US ESG Impact Index Fund, FlexShares® STOXX® Global ESG Impact Index Fund and FlexShares® STOXX® Global Broad Infrastructure Index Fund, respectively. The iBoxx 3-Year Target Duration TIPS Index and iBoxx 5-Year Target Duration TIPS Index are each the property of Markit North America, Inc. (“Markit”) and have been licensed for use in connection the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, respectively. Northern Trust Quality Large Cap IndexSM, Northern Trust Quality Dividend IndexSM, Northern Trust Quality Dividend Dynamic IndexSM, Northern Trust Quality Dividend Defensive IndexSM, Northern Trust International Quality Dividend IndexSM, Northern Trust Quality Dividend Dynamic IndexSM, Northern Trust International Quality Dividend Defensive IndexSM, Northern Trust Global Quality Real Estate IndexSM, and Northern Trust Credit-Scored US Corporate Bond IndexSM , Northern Trust Credit-Scored US Long Corporate Bond IndexSM, Northern Trust Real Assets Allocation IndexSM are service marks of NTI and have been licensed for use by FlexShares Trust. “BofA Merrill Lynch” and “The BofA Merrill Lynch Constrained Duration US Mortgage Backed Securities IndexSM” are trademarks of Merrill Lynch, Pierce, Fenner & Smith Incorporated or its affiliates and have been licensed for use by NTI.
FS00118-0617
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Item 2. Code Of Ethics.
Not applicable for this reporting period.
Item 3. Audit Committee Financial Expert.
Not applicable for this reporting period.
Item 4. Principal Accountant Fees and Services.
Not applicable for this reporting period.
Item 5. Audit Committee of Listed Registrants.
Not applicable for this reporting period.
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Item 6. Investments
(a) | Schedule I – Investments in Securities of Unaffiliated Issuers |
The complete schedule of investments is included in the report to shareholders in Item 1 of this Form N-CSR.
(b) | Securities Divested of in accordance with Section 13(c) of the Investment Company Act of 1940. |
Not applicable.
Item 7. Disclosure Of Proxy Voting Policies And Procedures For Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchase Of Equity Securities By Closed-End Management Investment Company And Affiliated Purchasers.
Not applicable.
Item 10. Submission Of Matters To A Vote Of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls And Procedures.
(a) | The Registrant’s principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | Not applicable for this reporting period. | |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. | |
(b) | Certifications required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FlexShares Trust
By: | /s/ Peter K. Ewing | |
Peter K. Ewing | ||
President | ||
July 6, 2017 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Peter K. Ewing | |
Peter K. Ewing | ||
President | ||
July 6, 2017 |
By: | /s/ Randal Rein | |
Randal Rein | ||
Treasurer and Principal Financial Officer | ||
July 6, 2017 |