UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-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:
Jeff Beeson
Jose Del Real, 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:855-353-9383
Date of fiscal year end: October 31
Date of reporting period: April 30, 2019
Item 1. Reports To Stockholders.
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1).
FlexShares® Trust
Semiannual Report
April 30, 2019
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of FlexShares® Trust’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from FlexShares® Trust or your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on FlexShares® Trust’s website (www.flexshares.com) and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive your shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from FlexShares® Trust electronically at any time by contacting your financial intermediary.
You may elect to receive all future reports in paper free of charge. Please contact your financial intermediary to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds in FlexShares® Trust that you hold in your account at the financial intermediary. You must provide separate instructions to each of your financial intermediaries.
Table of Contents
2 | ||||
9 | ||||
16 | ||||
30 | ||||
56 | ||||
56 | ||||
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund | 91 | |||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | 136 | |||
FlexShares® Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | 177 | |||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | 179 | |||
181 | ||||
185 | ||||
193 | ||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | 207 | |||
215 | ||||
221 | ||||
225 | ||||
226 | ||||
232 | ||||
237 | ||||
242 | ||||
FlexShares® International Quality Dividend Defensive Index Fund | 249 | |||
FlexShares® International Quality Dividend Dynamic Index Fund | 256 | |||
262 | ||||
263 | ||||
264 | ||||
268 | ||||
277 | ||||
284 | ||||
293 | ||||
303 | ||||
305 | ||||
344 | ||||
348 | ||||
357 |
FlexShares® Trust
Statements of Assets and LiabilitiesApril 30, 2019 (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 | $ | 983,596,928 | $ | 916,760,077 | $ | 510,572,404 | $ | — | ||||||||
Affiliate securities, at cost | 380,880 | — | — | 8,738,297 | ||||||||||||
Securities Lending Reinvestments, at cost | 103,201,582 | 14,484,118 | 3,577,822 | — | ||||||||||||
|
| |||||||||||||||
Securities, at value† | 1,478,882,201 | 1,013,811,165 | 577,172,319 | — | ||||||||||||
Affiliate securities, at value | 625,792 | — | — | 8,399,144 | ||||||||||||
Securities Lending Reinvestments, at value | 103,209,542 | 14,484,118 | 3,577,822 | — | ||||||||||||
Cash | 22,183,488 | 3,542,734 | 3,597,851 | 965 | ||||||||||||
Cash segregated at broker* | 41,548 | 1,226,568 | 180,750 | 3 | ||||||||||||
Foreign cash†† | — | 8,989,753 | 2,385,467 | — | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | 14,878 | 42,394 | 30,338 | ||||||||||||
Receivables: | — | — | — | — | ||||||||||||
Dividends and interest | 1,050,442 | 6,849,196 | 1,014,826 | — | ||||||||||||
Securities lending income | 25,946 | 102,330 | 25,152 | — | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 81,597 | 59,150 | 30,781 | 957 | ||||||||||||
Securities sold | — | 54,899 | 39,845 | — | ||||||||||||
Variation margin on futures contracts | 1,148,100 | 773,845 | 203,613 | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 1,607,248,656 | 1,049,908,636 | 588,270,820 | 8,431,407 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | 46,323 | 11,551 | 11,373 | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 103,184,691 | 14,484,118 | 3,577,822 | — | ||||||||||||
Deferred compensation (Note 7) | 78,965 | 57,529 | 29,715 | 564 | ||||||||||||
Investment advisory fees (Note 4) | 304,948 | 330,635 | 286,919 | 186 | ||||||||||||
Trustee fees (Note 7) | 8,679 | 5,792 | 3,486 | 428 | ||||||||||||
Securities purchased | — | 2 | 1 | — | ||||||||||||
Deferrednon-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | 15,000 | 100,000 | 100,000 | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 103,592,283 | 15,024,399 | 4,009,494 | 12,551 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,503,656,373 | $ | 1,034,884,237 | $ | 584,261,326 | $ | 8,418,856 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 1,039,296,668 | $ | 1,018,101,478 | $ | 570,984,957 | $ | 9,658,033 | ||||||||
Distributable earnings (loss) | 464,359,705 | 16,782,759 | 13,276,369 | (1,239,177 | ) | |||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,503,656,373 | $ | 1,034,884,237 | $ | 584,261,326 | $ | 8,418,856 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) | 12,700,001 | 16,600,001 | 10,900,001 | 300,001 | ||||||||||||
Net Asset Value | $ | 118.40 | $ | 62.34 | $ | 53.60 | $ | 28.06 | ||||||||
† Securities on loan, at value | $ | 141,912,223 | $ | 97,728,258 | $ | 23,130,022 | $ | — | ||||||||
†† Cost of foreign cash | $ | — | $ | 9,025,765 | $ | 2,407,208 | $ | — |
* | 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 |
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 | $ | — | $ | 75,110,140 | $ | 38,152,052 | $ | 65,504,070 | ||||||||
Affiliate securities, at cost | 5,851,436 | — | 32,116 | 31,320 | ||||||||||||
Securities Lending Reinvestments, at cost | — | 653,504 | 111,491 | 879,269 | ||||||||||||
|
| |||||||||||||||
Securities, at value† | — | 81,260,702 | 45,144,270 | 73,125,506 | ||||||||||||
Affiliate securities, at value | 5,789,714 | — | 33,310 | 32,521 | ||||||||||||
Securities Lending Reinvestments, at value | — | 653,504 | 111,491 | 879,269 | ||||||||||||
Cash | 37,020 | 1,173,208 | 272,036 | 252,942 | ||||||||||||
Cash segregated at broker* | 14,847 | 73,312 | 37,461 | 42,132 | ||||||||||||
Foreign cash†† | — | — | — | 362,658 | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 42,495 | — | — | — | ||||||||||||
Receivables: | — | — | — | — | ||||||||||||
Dividends and interest | — | 49,062 | 51,748 | 218,299 | ||||||||||||
Securities lending income | — | 535 | 313 | 979 | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 1,722 | 1,910 | 1,079 | 2,008 | ||||||||||||
Securities sold | — | — | — | — | ||||||||||||
Variation margin on futures contracts | 2,132 | 64,178 | 13,684 | 31,924 | ||||||||||||
|
| |||||||||||||||
Total Assets | 5,887,930 | 83,276,411 | 45,665,392 | 74,948,238 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 921 | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | — | 653,504 | 111,491 | 879,269 | ||||||||||||
Deferred compensation (Note 7) | 1,404 | 1,518 | 726 | 1,529 | ||||||||||||
Investment advisory fees (Note 4) | 88 | 21,599 | 11,417 | 25,212 | ||||||||||||
Trustee fees (Note 7) | 345 | 734 | 530 | 768 | ||||||||||||
Securities purchased | — | — | 3,146 | — | ||||||||||||
Deferrednon-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | — | 3,500 | 1,400 | 7,500 | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 2,758 | 680,855 | 128,710 | 914,278 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 5,885,172 | $ | 82,595,556 | $ | 45,536,682 | $ | 74,033,960 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 7,720,944 | $ | 77,734,603 | $ | 39,569,940 | $ | 68,228,604 | ||||||||
Distributable earnings (loss) | (1,835,772 | ) | 4,860,953 | 5,966,742 | 5,805,356 | |||||||||||
|
| |||||||||||||||
Net Assets | $ | 5,885,172 | $ | 82,595,556 | $ | 45,536,682 | $ | 74,033,960 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) | 200,001 | 2,400,001 | 650,001 | 750,001 | ||||||||||||
Net Asset Value | $ | 29.43 | $ | 34.41 | $ | 70.06 | $ | 98.71 | ||||||||
† Securities on loan, at value | $ | — | $ | 1,627,638 | $ | 1,235,716 | $ | 1,374,431 | ||||||||
†† Cost of foreign cash | $ | — | $ | — | $ | — | $ | 365,314 |
* | 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 |
Statements of Assets and Liabilities (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 | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | 4,953,560,407 | $ | 803,276,316 | $ | 293,744,634 | $ | — | ||||||||
Affiliate securities, at cost | — | — | — | 9,845,644 | ||||||||||||
Securities Lending Reinvestments, at cost | 231,495,754 | 23,065,024 | 7,855,000 | — | ||||||||||||
|
| |||||||||||||||
Securities, at value† | 5,608,852,141 | 928,430,030 | 331,752,981 | — | ||||||||||||
Affiliate securities, at value | — | — | — | 10,196,434 | ||||||||||||
Securities Lending Reinvestments, at value | 231,513,516 | 23,065,024 | 7,855,000 | — | ||||||||||||
Cash | 18,685,436 | 4,354,408 | 938,874 | 705 | ||||||||||||
Cash segregated at broker* | 1,252,342 | 495,774 | 379,434 | — | ||||||||||||
Foreign cash†† | 7,083,309 | 3,421,621 | 607,360 | — | ||||||||||||
Restricted cash** | 3,445,022 | — | — | — | ||||||||||||
Due from Authorized Participant | 311,717 | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 558,130 | 9,613 | 8,578 | — | ||||||||||||
Receivables: | — | — | — | — | ||||||||||||
Dividends and interest | 14,761,083 | 2,483,700 | 944,321 | — | ||||||||||||
Securities lending income | 79,316 | 11,364 | 2,980 | — | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 318,056 | 46,018 | 14,173 | 661 | ||||||||||||
Securities sold | — | 9,045 | — | 117,465 | ||||||||||||
Variation margin on futures contracts | 1,259,572 | 375,008 | 108,185 | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 5,888,119,640 | 962,701,605 | 342,611,886 | 10,315,265 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 367,051 | 16,990 | 11,034 | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 231,439,250 | 23,065,024 | 7,855,000 | — | ||||||||||||
Deferred compensation (Note 7) | 312,038 | 45,080 | 13,463 | 287 | ||||||||||||
Investment advisory fees (Note 4) | 2,163,712 | 359,181 | 124,134 | 655 | ||||||||||||
Trustee fees (Note 7) | 29,430 | 4,722 | 2,088 | 413 | ||||||||||||
Securities purchased | 311,718 | — | — | 116,306 | ||||||||||||
Deferrednon-US capital gains taxes | 282,281 | 33,186 | — | — | ||||||||||||
Due to Authorized Participant | 3,445,022 | — | — | — | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | 28,500 | 16,000 | 10,000 | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 238,379,002 | 23,540,183 | 8,015,719 | 117,661 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 5,649,740,638 | $ | 939,161,422 | $ | 334,596,167 | $ | 10,197,604 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 5,675,584,910 | $ | 857,859,292 | $ | 302,267,856 | $ | 9,598,406 | ||||||||
Distributable earnings (loss) | (25,844,272 | ) | 81,302,130 | 32,328,311 | 599,198 | |||||||||||
|
| |||||||||||||||
Net Assets | $ | 5,649,740,638 | $ | 939,161,422 | $ | 334,596,167 | $ | 10,197,604 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) | 172,400,001 | 18,750,001 | 5,300,001 | 350,001 | ||||||||||||
Net Asset Value | $ | 32.77 | $ | 50.09 | $ | 63.13 | $ | 29.14 | ||||||||
† Securities on loan, at value | $ | 517,096,799 | $ | 54,397,862 | $ | 13,138,627 | $ | — | ||||||||
†† Cost of foreign cash | $ | 7,082,337 | $ | 3,425,226 | $ | 610,460 | $ | — |
* | 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 |
Statements of Assets and Liabilities (cont.)
FlexShares® Quality Dividend Index Fund | FlexShares® Quality Dividend Defensive Index Fund | FlexShares® Quality Dividend Dynamic Index Fund | FlexShares® International Quality Dividend Index Fund | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | 1,465,328,259 | $ | 315,514,859 | $ | 43,634,164 | $ | 833,217,656 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | 149,754,855 | 19,950,016 | 89,590 | 35,071,552 | ||||||||||||
|
| |||||||||||||||
Securities, at value† | 1,763,188,384 | 374,965,261 | 50,713,551 | 834,402,472 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | 149,771,054 | 19,950,016 | 89,590 | 35,071,552 | ||||||||||||
Cash | 25,888,916 | 5,646,423 | 795,075 | 6,028,497 | ||||||||||||
Cash segregated at broker* | 59,883 | 93,563 | 82,038 | 1,038,632 | ||||||||||||
Foreign cash†† | — | — | — | 6,101,925 | ||||||||||||
Restricted cash** | — | — | — | 629,638 | ||||||||||||
Due from Authorized Participant | — | — | — | 1,925,522 | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | 69,834 | ||||||||||||
Receivables: | — | — | — | — | ||||||||||||
Dividends and interest | 2,096,688 | 349,844 | 59,607 | 4,564,113 | ||||||||||||
Securities lending income | — | 3,299 | 310 | 42,634 | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 98,950 | 18,674 | 5,503 | 42,962 | ||||||||||||
Securities sold | 51,171 | 30,902 | 5,839 | 774 | ||||||||||||
Variation margin on futures contracts | 1,458,730 | 335,790 | 43,613 | 452,923 | ||||||||||||
|
| |||||||||||||||
Total Assets | 1,942,613,776 | 401,393,772 | 51,795,126 | 890,371,478 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | 30,883 | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 149,698,267 | 19,950,016 | 89,590 | 35,071,552 | ||||||||||||
Deferred compensation (Note 7) | 95,613 | 17,836 | 4,947 | 41,789 | ||||||||||||
Investment advisory fees (Note 4) | 542,433 | 114,721 | 16,475 | 315,583 | ||||||||||||
Trustee fees (Note 7) | 10,575 | 2,403 | 782 | 4,528 | ||||||||||||
Securities purchased | — | — | — | 1,961,442 | ||||||||||||
Deferrednon-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | 629,638 | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | 31,049 | 7,500 | 4,500 | 65,000 | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 150,377,937 | 20,092,476 | 116,294 | 38,120,415 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,792,235,839 | $ | 381,301,296 | $ | 51,678,832 | $ | 852,251,063 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 1,433,132,941 | $ | 308,481,987 | $ | 42,293,318 | $ | 946,659,909 | ||||||||
Distributable earnings (loss) | 359,102,898 | 72,819,309 | 9,385,514 | (94,408,846 | ) | |||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,792,235,839 | $ | 381,301,296 | $ | 51,678,832 | $ | 852,251,063 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) | 39,050,001 | 8,350,001 | 1,150,001 | 36,300,001 | ||||||||||||
Net Asset Value | $ | 45.90 | $ | 45.66 | $ | 44.94 | $ | 23.48 | ||||||||
† Securities on loan, at value | $ | 178,660,300 | $ | 31,231,725 | $ | 3,287,363 | $ | 69,344,177 | ||||||||
†† Cost of foreign cash | $ | — | $ | — | $ | — | $ | 6,142,215 |
* | 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 |
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 | $ | 93,337,637 | $ | 43,072,235 | $ | 1,252,946,409 | $ | 556,015,940 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | 1,301,131 | 532,077 | — | — | ||||||||||||
|
| |||||||||||||||
Securities, at value† | 93,738,045 | 44,489,724 | 1,258,535,893 | 558,972,060 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | 1,301,131 | 532,077 | — | — | ||||||||||||
Cash | 823,857 | 459,090 | 671,143 | 1,547,188 | ||||||||||||
Cash segregated at broker* | 42,124 | 66,341 | — | — | ||||||||||||
Foreign cash†† | 797,890 | 81,064 | — | — | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 1,146 | — | — | — | ||||||||||||
Receivables: | — | — | — | — | ||||||||||||
Dividends and interest | 522,404 | 243,298 | 1,625,747 | 1,135,786 | ||||||||||||
Securities lending income | 5,971 | 2,827 | 391 | 2,014 | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 6,488 | 3,968 | 183,099 | 62,811 | ||||||||||||
Securities sold | — | — | — | — | ||||||||||||
Variation margin on futures contracts | 73,584 | 25,698 | — | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 97,312,640 | 45,904,087 | 1,261,016,273 | 561,719,859 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 53 | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 1,301,131 | 532,077 | — | — | ||||||||||||
Deferred compensation (Note 7) | 6,000 | 3,511 | 180,493 | 60,606 | ||||||||||||
Investment advisory fees (Note 4) | 37,390 | 17,613 | 187,034 | 81,215 | ||||||||||||
Trustee fees (Note 7) | 890 | 650 | 7,570 | 4,440 | ||||||||||||
Securities purchased | — | — | — | — | ||||||||||||
Deferrednon-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | 20,000 | 5,000 | — | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 1,365,464 | 558,851 | 375,097 | 146,261 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 95,947,176 | $ | 45,345,236 | $ | 1,260,641,176 | $ | 561,573,598 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 112,319,423 | $ | 57,950,586 | $ | 1,325,616,199 | $ | 582,786,619 | ||||||||
Distributable earnings (loss) | (16,372,247 | ) | (12,605,350 | ) | (64,975,023 | ) | (21,213,021 | ) | ||||||||
|
| |||||||||||||||
Net Assets | $ | 95,947,176 | $ | 45,345,236 | $ | 1,260,641,176 | $ | 561,573,598 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) | 4,300,001 | 1,800,001 | 51,604,000 | 22,500,001 | ||||||||||||
Net Asset Value | $ | 22.31 | $ | 25.19 | $ | 24.43 | $ | 24.96 | ||||||||
† Securities on loan, at value | $ | 5,363,100 | $ | 3,664,010 | $ | 9,466,221 | $ | 54,417,027 | ||||||||
†† Cost of foreign cash | $ | 807,711 | $ | 81,557 | $ | — | $ | — |
* | 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 |
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® High Yield Value-Scored Bond Index Fund | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | 50,877,318 | $ | 100,609,797 | $ | 27,637,372 | $ | 40,722,408 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Securities, at value† | 50,685,543 | 102,638,177 | 28,230,351 | 40,293,639 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | — | — | — | — | ||||||||||||
Cash | 2,569,808 | 264,637 | 79,742 | 551,204 | ||||||||||||
Cash segregated at broker* | — | — | — | — | ||||||||||||
Foreign cash†† | — | — | — | — | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | — | ||||||||||||
Receivables: | — | — | — | — | ||||||||||||
Dividends and interest | 167,786 | 920,373 | 352,650 | 769,105 | ||||||||||||
Securities lending income | — | — | — | — | ||||||||||||
Capital shares issued | 928 | — | — | — | ||||||||||||
Investment adviser | 2,871 | 3,025 | 1,258 | 525 | ||||||||||||
Securities sold | — | 2,760,647 | 388 | 2,734,994 | ||||||||||||
Variation margin on futures contracts | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 53,426,936 | 106,586,859 | 28,664,389 | 44,349,467 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | — | — | — | — | ||||||||||||
Deferred compensation (Note 7) | 2,422 | 2,681 | 887 | 410 | ||||||||||||
Investment advisory fees (Note 4) | 9,233 | 18,702 | 5,152 | 12,365 | ||||||||||||
Trustee fees (Note 7) | 684 | 764 | 487 | 275 | ||||||||||||
Securities purchased | — | 2,703,006 | — | 2,708,593 | ||||||||||||
Deferrednon-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Capital shares redeemed | 2,320,657 | — | — | — | ||||||||||||
Other | 5,200 | 1,000 | — | 500 | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 2,338,196 | 2,726,153 | 6,526 | 2,722,143 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 51,088,740 | $ | 103,860,706 | $ | 28,657,863 | $ | 41,627,324 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 53,673,369 | $ | 102,124,858 | $ | 28,788,651 | $ | 42,889,353 | ||||||||
Distributable earnings (loss) | (2,584,629 | ) | 1,735,848 | (130,788 | ) | (1,262,029 | ) | |||||||||
|
| |||||||||||||||
Net Assets | $ | 51,088,740 | $ | 103,860,706 | $ | 28,657,863 | $ | 41,627,324 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) | 2,200,001 | 2,050,001 | 550,001 | 850,001 | ||||||||||||
Net Asset Value | $ | 23.22 | $ | 50.66 | $ | 52.11 | $ | 48.97 | ||||||||
† Securities on loan, at value | $ | — | $ | — | $ | — | $ | — | ||||||||
†† 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 |
Statements of Assets and Liabilities (cont.)
FlexShares® Ready Access Variable Income Fund | FlexShares® Core Select Bond Fund | |||||||
ASSETS |
| |||||||
Securities, at cost | $ | 251,020,797 | $ | 29,802,208 | ||||
Affiliate securities, at cost | — | 12,758,385 | ||||||
Securities Lending Reinvestments, at cost | — | — | ||||||
|
| |||||||
Securities, at value† | 251,550,229 | 30,434,879 | ||||||
Affiliate securities, at value | — | 13,116,574 | ||||||
Securities Lending Reinvestments, at value | — | — | ||||||
Cash | 935,286 | 148,769 | ||||||
Cash segregated at broker* | — | — | ||||||
Foreign cash†† | — | — | ||||||
Restricted cash** | — | — | ||||||
Due from Authorized Participant | — | — | ||||||
Unrealized appreciation on forward foreign currency contracts | — | — | ||||||
Receivables: | — | — | ||||||
Dividends and interest | 1,568,695 | — | ||||||
Securities lending income | — | — | ||||||
Capital shares issued | — | — | ||||||
Investment adviser | 10,753 | 7,108 | ||||||
Securities sold | 369,719 | — | ||||||
Variation margin on futures contracts | — | — | ||||||
|
| |||||||
Total Assets | 254,434,682 | 43,707,330 | ||||||
|
| |||||||
LIABILITIES |
| |||||||
Unrealized depreciation on forward foreign currency contracts | — | — | ||||||
Payables: | ||||||||
Cash collateral received from securities loaned | — | — | ||||||
Deferred compensation (Note 7) | 10,212 | 636 | ||||||
Investment advisory fees (Note 4) | 52,363 | 8,860 | ||||||
Trustee fees (Note 7) | 1,559 | 546 | ||||||
Securities purchased | 881,686 | — | ||||||
Deferrednon-US capital gains taxes | — | — | ||||||
Due to Authorized Participant | — | — | ||||||
Capital shares redeemed | — | — | ||||||
Other | 700 | — | ||||||
|
| |||||||
Total Liabilities | 946,520 | 10,042 | ||||||
|
| |||||||
Net Assets | $ | 253,488,162 | $ | 43,697,288 | ||||
|
| |||||||
NET ASSETS CONSIST OF: |
| |||||||
Paid-in capital | $ | 252,572,278 | $ | 43,250,714 | ||||
Distributable earnings (loss) | 915,884 | 446,574 | ||||||
|
| |||||||
Net Assets | $ | 253,488,162 | $ | 43,697,288 | ||||
|
| |||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) | 3,350,001 | 1,775,001 | ||||||
Net Asset Value | $ | 75.67 | $ | 24.62 | ||||
† Securities on loan, at value | $ | — | $ | — | ||||
†† 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 |
FlexShares® Trust
For the six months ended April 30, 2019 (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 | $ | 14,524,660 | $ | 16,772,466 | $ | 5,170,487 | $ | — | ||||||||
Dividend income received from affiliate | 8,485 | — | — | 76,672 | ||||||||||||
Interest income | — | — | 816 | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 280,027 | 496,429 | 136,397 | — | ||||||||||||
Foreign withholding tax on dividends | (2,813 | ) | (1,571,888 | ) | (542,195 | ) | — | |||||||||
Foreign withholding tax on interest | — | — | (5 | ) | — | |||||||||||
|
| |||||||||||||||
Total Investment Income | 14,810,359 | 15,697,007 | 4,765,500 | 76,672 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 3,701 | 2,413 | 1,402 | 18 | ||||||||||||
Investment advisory fees | 1,727,733 | 1,867,848 | 1,524,853 | 17,767 | ||||||||||||
Trustee fees (Note 7) | 31,549 | 21,858 | 11,790 | 181 | ||||||||||||
Other expenses (Note 4) | 33,680 | 24,568 | 13,030 | 257 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 1,796,663 | 1,916,687 | 1,551,075 | 18,223 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (1,094 | ) | (643 | ) | (422 | ) | (4 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | (15,720 | ) | |||||||||||
Trustee fees reimbursed (Note 7) | (20,878 | ) | (14,546 | ) | (7,641 | ) | (120 | ) | ||||||||
Other expenses reimbursed (Note 4) | (33,680 | ) | (24,568 | ) | (13,030 | ) | (257 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 1,741,011 | 1,876,930 | 1,529,982 | 2,122 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 13,069,348 | 13,820,077 | 3,235,518 | 74,550 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | (29,917 | ) | — | — | (25,178 | ) | ||||||||||
Transactions in investment securities | (39,845,996 | ) | (30,626,356 | ) | (18,497,572 | )(1) | — | |||||||||
In-kind redemptions on investments in affiliated securities | 10,530 | — | — | (3,143 | ) | |||||||||||
In-kind redemptions on investments in securities | 21,810,830 | 11,736,420 | 181,958 | — | ||||||||||||
Expiration or closing of futures contracts | (2,865,010 | ) | (756,112 | ) | 191,540 | — | ||||||||||
Settlement of forward foreign currency contracts | — | (82,014 | ) | (23,368 | ) | 128,968 | ||||||||||
Foreign currency transactions | — | (40,100 | ) | (147,755 | ) | 26,732 | ||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (20,919,563 | ) | (19,768,162 | ) | (18,295,197 | ) | 127,379 | |||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 123,456,083 | (2) | 54,968,448 | 73,318,881 | 404,538 | (3) | ||||||||||
Securities lending | 6,655 | — | — | — | ||||||||||||
Futures contracts | 2,317,901 | 1,356,636 | 331,579 | — | ||||||||||||
Forward foreign currency contracts | — | 116,519 | 64,225 | (66,579 | ) | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | 12,261 | (25,628 | ) | — | |||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 125,780,639 | 56,453,864 | 73,689,057 | 337,959 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 104,861,076 | 36,685,702 | 55,393,860 | 465,338 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 117,930,424 | $ | 50,505,779 | $ | 58,629,378 | $ | 539,888 | ||||||||
|
|
(1) | Net ofnon-US capital gains tax of $(40,989). |
(2) | Includes $15,073 change in unrealized appreciation on investments in affiliates. |
(3) | Includes $404,538 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 9 |
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 | $ | — | $ | 829,711 | $ | 410,627 | $ | 1,061,776 | ||||||||
Dividend income received from affiliate | 24,041 | — | — | — | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | — | 1,652 | 2,146 | 3,347 | ||||||||||||
Foreign withholding tax on dividends | — | (96 | ) | — | (47,866 | ) | ||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 24,041 | 831,267 | 412,773 | 1,017,257 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 18 | 238 | 119 | 187 | ||||||||||||
Investment advisory fees | 16,924 | 110,892 | 58,061 | 155,145 | ||||||||||||
Trustee fees (Note 7) | 118 | 1,580 | 826 | 1,683 | ||||||||||||
Other expenses (Note 4) | 153 | 1,577 | 762 | 1,914 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 17,213 | 114,287 | 59,768 | 158,929 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (8 | ) | (96 | ) | (46 | ) | (59 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | (15,436 | ) | — | — | — | |||||||||||
Trustee fees reimbursed (Note 7) | (72 | ) | (985 | ) | (516 | ) | (1,166 | ) | ||||||||
Other expenses reimbursed (Note 4) | (153 | ) | (1,577 | ) | (762 | ) | (1,914 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 1,544 | 111,629 | 58,444 | 155,790 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 22,497 | 719,638 | 354,329 | 861,467 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | (11,099 | ) | — | — | — | |||||||||||
Transactions in investment securities | — | (875,284 | ) | (1,011,676 | ) | (2,976,953 | ) | |||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | 68,404 | — | 1,787,706 | ||||||||||||
Expiration or closing of futures contracts | 1,071 | 27,572 | (21,950 | ) | (59,966 | ) | ||||||||||
Settlement of forward foreign currency contracts | (5,129 | ) | — | — | — | |||||||||||
Foreign currency transactions | (8,047 | ) | — | — | (7,441 | ) | ||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (23,204 | ) | (779,308 | ) | (1,033,626 | ) | (1,256,654 | ) | ||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 700,680 | (1) | 3,393,764 | 4,721,221 | (2) | 6,473,100 | (3) | |||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | 4,911 | 75,331 | 40,578 | 98,308 | ||||||||||||
Forward foreign currency contracts | 4,370 | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | — | 5,323 | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 709,961 | 3,469,095 | 4,761,799 | 6,576,731 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 686,757 | 2,689,787 | 3,728,173 | 5,320,077 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 709,254 | $ | 3,409,425 | $ | 4,082,502 | $ | 6,181,544 | ||||||||
|
|
(1) | Includes $700,680 change in unrealized appreciation on investments in affiliates. |
(2) | Includes $1,194 change in unrealized appreciation on investments in affiliates. |
(3) | Includes $1,201 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
10 | FLEXSHARES SEMIANNUAL REPORT |
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 | $ | 110,776,964 | $ | 13,374,520 | $ | 5,883,552 | $ | — | ||||||||
Dividend income received from affiliate | — | — | — | 165,763 | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 1,264,173 | 112,088 | 26,651 | — | ||||||||||||
Foreign withholding tax on dividends | (4,466,929 | ) | (763,105 | ) | (200,262 | ) | — | |||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 107,574,208 | 12,723,503 | 5,709,941 | 165,763 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 13,446 | 2,233 | 932 | 22 | ||||||||||||
Investment advisory fees | 12,382,247 | 1,942,527 | 674,471 | 34,616 | ||||||||||||
Trustee fees (Note 7) | 122,956 | 18,866 | 6,842 | 275 | ||||||||||||
Other expenses (Note 4) | 137,300 | 19,787 | 7,108 | 356 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 12,655,949 | 1,983,413 | 689,353 | 35,269 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (3,331 | ) | (642 | ) | (345 | ) | (3 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | (28,046 | ) | |||||||||||
Trustee fees reimbursed (Note 7) | (81,529 | ) | (12,238 | ) | (4,412 | ) | (201 | ) | ||||||||
Other expenses reimbursed (Note 4) | (137,300 | ) | (19,787 | ) | (7,108 | ) | (356 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 12,433,789 | 1,950,746 | 677,488 | 6,663 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 95,140,419 | 10,772,757 | 5,032,453 | 159,100 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | (18,183 | ) | |||||||||||
Transactions in investment securities | (97,851,967 | ) | (11,306,939 | )(1) | (3,459,659 | ) | — | |||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | 290,406 | ||||||||||||
In-kind redemptions on investments in securities | 31,211,188 | — | — | — | ||||||||||||
Expiration or closing of futures contracts | 188,345 | (379,762 | ) | (341,522 | ) | — | ||||||||||
Settlement of forward foreign currency contracts | (430,507 | ) | (50,734 | ) | 11,119 | — | ||||||||||
Foreign currency transactions | (1,054,259 | ) | (38,518 | ) | (19,137 | ) | — | |||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (67,937,200 | ) | (11,775,953 | ) | (3,809,199 | ) | 272,223 | |||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 261,688,400 | (2) | 97,951,815 | (3) | 28,339,809 | 898,164 | (4) | |||||||||
Securities lending | 16,259 | (692 | ) | — | — | |||||||||||
Futures contracts | 3,286,358 | 649,920 | 538,582 | — | ||||||||||||
Forward foreign currency contracts | 422,597 | 6,942 | (14,417 | ) | — | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies | (18,784 | ) | 6,926 | 38,887 | — | |||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 265,394,830 | 98,614,911 | 28,902,861 | 898,164 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 197,457,630 | 86,838,958 | 25,093,662 | 1,170,387 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 292,598,049 | $ | 97,611,715 | $ | 30,126,115 | $ | 1,329,487 | ||||||||
|
|
(1) | Net ofnon-US capital gains tax of $(29,616). |
(2) | Net of deferrednon-US capital gains tax of $282,281. |
(3) | Net of deferrednon-US capital gains tax of $33,186. |
(4) | Includes $898,164 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 11 |
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 | $ | 29,413,479 | $ | 5,850,047 | $ | 860,752 | $ | 19,220,507 | ||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 401,304 | 24,870 | 6,382 | 225,175 | ||||||||||||
Foreign withholding tax on dividends | — | (1,267 | ) | (397 | ) | (1,720,807 | ) | |||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 29,814,783 | 5,873,650 | 866,737 | 17,724,875 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 4,158 | 942 | 152 | 1,720 | ||||||||||||
Investment advisory fees | 3,160,578 | 626,100 | 93,981 | 1,726,435 | ||||||||||||
Trustee fees (Note 7) | 39,004 | 7,723 | 1,158 | 16,756 | ||||||||||||
Other expenses (Note 4) | 44,211 | 8,192 | 1,159 | 19,447 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 3,247,951 | 642,957 | 96,450 | 1,764,358 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (980 | ) | (292 | ) | (50 | ) | (357 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (26,094 | ) | (5,018 | ) | (751 | ) | (10,971 | ) | ||||||||
Other expenses reimbursed (Note 4) | (44,211 | ) | (8,192 | ) | (1,159 | ) | (19,447 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 3,176,666 | 629,455 | 94,490 | 1,733,583 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 26,638,117 | 5,244,195 | 772,247 | 15,991,292 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | — | ||||||||||||
Transactions in investment securities | 32,727,607 | 11,716,492 | 330,625 | (28,656,689 | )(1) | |||||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | 19,117,176 | — | 1,961,785 | (1,502,462 | ) | |||||||||||
Expiration or closing of futures contracts | (893,085 | ) | (309,388 | ) | (31,822 | ) | 28,351 | |||||||||
Settlement of forward foreign currency contracts | — | — | — | 13,164 | ||||||||||||
Foreign currency transactions | — | — | — | (429,876 | ) | |||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | 50,951,698 | 11,407,104 | 2,260,588 | (30,547,512 | ) | |||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 19,497,407 | 11,830,518 | 2,413,685 | 55,180,398 | ||||||||||||
Securities lending | 14,574 | 2 | — | — | ||||||||||||
Futures contracts | 2,378,740 | 483,218 | 79,080 | 783,223 | ||||||||||||
Forward foreign currency contracts | — | — | — | 55,806 | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | — | (63,655 | ) | |||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 21,890,721 | 12,313,738 | 2,492,765 | 55,955,772 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 72,842,419 | 23,720,842 | 4,753,353 | 25,408,260 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 99,480,536 | $ | 28,965,037 | $ | 5,525,600 | $ | 41,399,552 | ||||||||
|
|
(1) | Net ofnon-US capital gains tax of $(75). |
See Accompanying Notes to the Financial Statements.
12 | FLEXSHARES SEMIANNUAL REPORT |
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 | $ | 2,374,497 | $ | 967,612 | $ | — | $ | — | ||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | — | — | 6,227,820 | 3,051,696 | ||||||||||||
Securities lending income (net of fees) (Note 2) | 26,198 | 15,164 | 7,513 | 4,615 | ||||||||||||
Foreign withholding tax on dividends | (219,331 | ) | (82,901 | ) | — | — | ||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 2,181,364 | 899,875 | 6,235,333 | 3,056,311 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 260 | 85 | 2,036 | (1) | 824 | (1) | ||||||||||
Investment advisory fees | 209,082 | 106,123 | 1,253,699 | 621,794 | ||||||||||||
Trustee fees (Note 7) | 2,030 | 1,028 | 31,811 | 15,758 | ||||||||||||
Other expenses (Note 4) | 2,168 | 1,515 | 40,787 | 21,577 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 213,540 | 108,751 | 1,328,333 | 659,953 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (84 | ) | (6 | ) | 252 | (1) | 310 | (1) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (1,313 | ) | (692 | ) | (22,705 | ) | (11,772 | ) | ||||||||
Other expenses reimbursed (Note 4) | (2,168 | ) | (1,515 | ) | (40,787 | ) | (21,577 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 209,975 | 106,538 | 1,265,093 | 626,914 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 1,971,389 | 793,337 | 4,970,240 | 2,429,397 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | — | ||||||||||||
Transactions in investment securities | (2,631,504 | ) | (2,947,385 | ) | (4,363,820 | ) | (2,029,012 | ) | ||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | 320,505 | (1,693,816 | ) | (4,136,079 | ) | (4,909,444 | ) | |||||||||
Expiration or closing of futures contracts | (20,853 | ) | (20,698 | ) | — | — | ||||||||||
Settlement of forward foreign currency contracts | (495 | ) | — | — | — | |||||||||||
Foreign currency transactions | (47,414 | ) | (10,839 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (2,379,761 | ) | (4,672,738 | ) | (8,499,899 | ) | (6,938,456 | ) | ||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 6,250,077 | 6,091,173 | 43,833,974 | 34,993,190 | ||||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | 151,400 | 55,190 | — | — | ||||||||||||
Forward foreign currency contracts | 2,576 | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | (5,241 | ) | (3,502 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 6,398,812 | 6,142,861 | 43,833,974 | 34,993,190 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 4,019,051 | 1,470,123 | 35,334,075 | 28,054,734 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 5,990,440 | $ | 2,263,460 | $ | 40,304,315 | $ | 30,484,131 | ||||||||
|
|
(1) | The deferred compensation expense reflects the periodic adjustment of the performance of the investment options selected by the Trustees. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 13 |
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® High Yield Value-Scored Bond Index Fund | |||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income | $ | — | $ | — | $ | — | $ | — | ||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | 1,042,681 | 1,577,696 | 610,548 | 1,867,615 | ||||||||||||
Securities lending income (net of fees) (Note 2) | — | — | — | — | ||||||||||||
Foreign withholding tax on dividends | — | — | — | — | ||||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 1,042,681 | 1,577,696 | 610,548 | 1,867,615 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 170 | 323 | 66 | 57 | (1) | |||||||||||
Investment advisory fees | 69,733 | 98,207 | 29,788 | 72,700 | ||||||||||||
Trustee fees (Note 7) | 1,593 | 2,035 | 615 | 896 | ||||||||||||
Other expenses (Note 4) | 1,820 | 1,772 | 678 | 1,128 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 73,316 | 102,337 | 31,147 | 74,781 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (38 | ) | (143 | ) | (16 | ) | 13 | (1) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (1,133 | ) | (1,301 | ) | (410 | ) | (611 | ) | ||||||||
Other expenses reimbursed (Note 4) | (1,820 | ) | (1,772 | ) | (678 | ) | (1,128 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 70,325 | 99,121 | 30,043 | 73,055 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 972,356 | 1,478,575 | 580,505 | 1,794,560 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | — | ||||||||||||
Transactions in investment securities | (80,516 | ) | 163,850 | (149,727 | ) | (536,745 | ) | |||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | — | — | (504,890 | ) | |||||||||||
Expiration or closing of futures contracts | — | — | — | — | ||||||||||||
Settlement of forward foreign currency contracts | — | — | — | — | ||||||||||||
Foreign currency transactions | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (80,516 | ) | 163,850 | (149,727 | ) | (1,041,635 | ) | |||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | 1,879,502 | 3,752,787 | 2,386,415 | 1,136,471 | ||||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | — | — | — | — | ||||||||||||
Forward foreign currency contracts | — | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 1,879,502 | 3,752,787 | 2,386,415 | 1,136,471 | ||||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 1,798,986 | 3,916,637 | 2,236,688 | 94,836 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 2,771,342 | $ | 5,395,212 | $ | 2,817,193 | $ | 1,889,396 | ||||||||
|
|
(1) | The deferred compensation expense reflects the periodic adjustment of the performance of the investment options selected by the Trustees. |
See Accompanying Notes to the Financial Statements.
14 | FLEXSHARES SEMIANNUAL REPORT |
Statements of Operations (cont.)
FlexShares® Ready Access Variable Income Fund | FlexShares® Core Select Bond Fund | |||||||
INVESTMENT INCOME |
| |||||||
Dividend income | $ | — | $ | 178,720 | ||||
Dividend income received from affiliate | — | 495,477 | ||||||
Interest income | 3,802,926 | 1,864 | ||||||
Securities lending income (net of fees) (Note 2) | — | — | ||||||
Foreign withholding tax on dividends | — | — | ||||||
Foreign withholding tax on interest | — | — | ||||||
|
| |||||||
Total Investment Income | 3,802,926 | 676,061 | ||||||
|
| |||||||
EXPENSES |
| |||||||
Deferred compensation (Note 7) | 756 | 104 | ||||||
Investment advisory fees | 320,321 | 74,566 | ||||||
Trustee fees (Note 7) | 5,851 | 970 | ||||||
Other expenses (Note 4) | 5,818 | 984 | ||||||
|
| |||||||
Total Gross Expenses Before Fees Reimbursed | 332,746 | 76,624 | ||||||
|
| |||||||
Less: |
| |||||||
Deferred compensation reimbursed (Note 7) | (297 | ) | (26 | ) | ||||
Investment advisory fees reimbursed (Note 4) | — | (39,485 | ) | |||||
Trustee fees reimbursed (Note 7) | (4,003 | ) | (657 | ) | ||||
Other expenses reimbursed (Note 4) | (5,818 | ) | (984 | ) | ||||
|
| |||||||
Total Net Expenses | 322,628 | 35,472 | ||||||
|
| |||||||
Net Investment Income (Loss) | 3,480,298 | 640,589 | ||||||
|
| |||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||
Transactions in investment securities of affiliated issuers | — | (445,934 | ) | |||||
Transactions in investment securities | (41,563 | ) | 24,777 | |||||
In-kind redemptions on investments in affiliated securities | — | 36,001 | ||||||
In-kind redemptions on investments in securities | (142,215 | ) | 24,128 | |||||
Expiration or closing of futures contracts | — | 14,881 | ||||||
Settlement of forward foreign currency contracts | — | — | ||||||
Foreign currency transactions | — | — | ||||||
|
| |||||||
Net Realized Gain (Loss) | (183,778 | ) | (346,147 | ) | ||||
|
| |||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||
Investments in securities | 657,865 | 1,904,239 | (1) | |||||
Securities lending | — | — | ||||||
Futures contracts | — | — | ||||||
Forward foreign currency contracts | — | — | ||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | ||||||
|
| |||||||
Net Change in Unrealized Appreciation (Depreciation) | 657,865 | 1,904,239 | ||||||
|
| |||||||
Net Realized and Unrealized Gain (Loss) | 474,087 | 1,558,092 | ||||||
|
| |||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 3,954,385 | $ | 2,198,681 | ||||
|
|
(1) | Includes $1,225,404 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 15 |
FlexShares® Trust
Statements of Changes in Net Assets
FlexShares® Morningstar US Market Factor Tilt Index Fund | FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund | |||||||||||||||
Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 13,069,348 | $ | 22,290,316 | $ | 13,820,077 | $ | 28,117,912 | ||||||||
Net realized gain (loss) | (20,919,563 | ) | 17,176,243 | (19,768,162 | ) | (11,314,930 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 125,780,639 | 4,166,755 | 56,453,864 | (110,045,785 | ) | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 117,930,424 | 43,633,314 | 50,505,779 | (93,242,803 | ) | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (11,444,908 | ) | (21,895,299 | ) | (8,694,857 | ) | (33,761,589 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (11,444,908 | ) | (21,895,299 | ) | (8,694,857 | ) | (33,761,589 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 52,913,203 | 244,086,962 | 96,868,248 | 122,745,608 | ||||||||||||
Cost of shares redeemed | (43,407,028 | ) | (28,359,353 | ) | (71,890,651 | ) | (13,253,045 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 9,506,175 | 215,727,609 | 24,977,597 | 109,492,563 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 115,991,691 | 237,465,624 | 66,788,519 | (17,511,829 | ) | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 1,387,664,682 | $ | 1,150,199,058 | $ | 968,095,718 | $ | 985,607,547 | ||||||||
|
| |||||||||||||||
End of Period | $ | 1,503,656,373 | $ | 1,387,664,682 | $ | 1,034,884,237 | $ | 968,095,718 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 12,600,001 | 10,700,001 | 16,200,001 | 14,600,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 500,000 | 2,150,000 | 1,600,000 | 1,800,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | (400,000 | ) | (250,000 | ) | (1,200,000 | ) | (200,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 12,700,001 | 12,600,001 | 16,600,001 | 16,200,001 | ||||||||||||
|
|
(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 |
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, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 3,235,518 | $ | 16,442,905 | $ | 74,550 | $ | 441,038 | ||||||||
Net realized gain (loss) | (18,295,197 | ) | (4,649,466 | ) | 127,379 | 2,153,874 | ||||||||||
Net change in unrealized appreciation (depreciation) | 73,689,057 | (106,291,005 | ) | 337,959 | (3,308,915 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 58,629,378 | (94,497,566 | ) | 539,888 | (714,003 | ) | ||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (2,482,295 | ) | (17,566,133 | ) | (75,176 | ) | (413,050 | ) | ||||||||
Tax return of capital | — | — | — | (152,741 | ) | |||||||||||
|
| |||||||||||||||
Total distributions | (2,482,295 | ) | (17,566,133 | ) | (75,176 | ) | (565,791 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 63,783,144 | 143,643,883 | 663,704 | 8,486,631 | ||||||||||||
Cost of shares redeemed | (24,404,946 | ) | (110,914,729 | ) | (642,632 | ) | (18,214,928 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 39,378,198 | 32,729,154 | 21,072 | (9,728,297 | ) | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 95,525,281 | (79,334,545 | ) | 485,784 | (11,008,091 | ) | ||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 488,736,045 | $ | 568,070,590 | $ | 7,933,072 | $ | 18,941,163 | ||||||||
|
| |||||||||||||||
End of Period | $ | 584,261,326 | $ | 488,736,045 | $ | 8,418,856 | $ | 7,933,072 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 10,200,001 | 9,900,001 | 300,001 | 650,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 1,200,000 | 2,400,000 | 25,000 | 300,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | (500,000 | ) | (2,100,000 | ) | (25,000 | ) | (650,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 10,900,001 | 10,200,001 | 300,001 | 300,001 | ||||||||||||
|
|
(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 | 17 |
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, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 22,497 | $ | 641,605 | $ | 719,638 | $ | 719,965 | ||||||||
Net realized gain (loss) | (23,204 | ) | 7,159,919 | (779,308 | ) | 101,624 | ||||||||||
Net change in unrealized appreciation (depreciation) | 709,961 | (10,069,410 | ) | 3,469,095 | 280,817 | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 709,254 | (2,267,886 | ) | 3,409,425 | 1,102,406 | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (22,952 | ) | (616,733 | ) | (593,543 | ) | (695,332 | ) | ||||||||
Tax return of capital | — | (32,884 | ) | — | — | |||||||||||
|
| |||||||||||||||
Total distributions | (22,952 | ) | (649,617 | ) | (593,543 | ) | (695,332 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 641,441 | — | 19,411,459 | 37,735,567 | ||||||||||||
Cost of shares redeemed | — | (33,809,843 | ) | (1,490,522 | ) | (3,339,109 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 641,441 | (33,809,843 | ) | 17,920,937 | 34,396,458 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 1,327,743 | (36,727,346 | ) | 20,736,819 | 34,803,532 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 4,557,429 | $ | 41,284,775 | $ | 61,858,737 | $ | 27,055,205 | ||||||||
|
| |||||||||||||||
End of Period | $ | 5,885,172 | $ | 4,557,429 | $ | 82,595,556 | $ | 61,858,737 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 175,001 | 1,350,001 | 1,850,001 | 850,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 25,000 | — | 600,000 | 1,100,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | — | (1,175,000 | ) | (50,000 | ) | (100,000 | ) | |||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 200,001 | 175,001 | 2,400,001 | 1,850,001 | ||||||||||||
|
|
(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.
18 | FLEXSHARES SEMIANNUAL REPORT |
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, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 354,329 | $ | 369,768 | $ | 861,467 | $ | 1,333,987 | ||||||||
Net realized gain (loss) | (1,033,626 | ) | 325,506 | (1,256,654 | ) | (836,669 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 4,761,799 | 723,737 | 6,576,731 | (1,135,942 | ) | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 4,082,502 | 1,419,011 | 6,181,544 | (638,624 | ) | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (291,779 | ) | (364,337 | ) | (682,259 | ) | (1,253,536 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (291,779 | ) | (364,337 | ) | (682,259 | ) | (1,253,536 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 12,799,578 | 15,899,635 | 4,612,428 | 42,987,562 | ||||||||||||
Cost of shares redeemed | — | (1,617,494 | ) | (9,361,860 | ) | — | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 12,799,578 | 14,282,141 | (4,749,432 | ) | 42,987,562 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 16,590,301 | 15,336,815 | 749,853 | 41,095,402 | ||||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 28,946,381 | $ | 13,609,566 | $ | 73,284,107 | $ | 32,188,705 | ||||||||
|
| |||||||||||||||
End of Period | $ | 45,536,682 | $ | 28,946,381 | $ | 74,033,960 | $ | 73,284,107 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 450,001 | 225,001 | 800,001 | 350,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 200,000 | 250,000 | 50,000 | 450,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | — | (25,000 | ) | (100,000 | ) | — | ||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 650,001 | 450,001 | 750,001 | 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.
FLEXSHARES SEMIANNUAL REPORT | 19 |
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, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 95,140,419 | $ | 148,910,559 | $ | 10,772,757 | $ | 24,176,292 | ||||||||
Net realized gain (loss) | (67,937,200 | ) | (100,926,806 | ) | (11,775,953 | ) | 13,872,043 | |||||||||
Net change in unrealized appreciation (depreciation) | 265,394,830 | 40,251,675 | 98,614,911 | (59,962,710 | ) | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 292,598,049 | 88,235,428 | 97,611,715 | (21,914,375 | ) | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (87,574,043 | ) | (142,689,396 | ) | (9,001,278 | ) | (25,040,675 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (87,574,043 | ) | (142,689,396 | ) | (9,001,278 | ) | (25,040,675 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 168,653,544 | 729,840,347 | 77,188,230 | 44,339,305 | ||||||||||||
Cost of shares redeemed | (159,719,972 | ) | — | — | (99,649,945 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 8,933,572 | 729,840,347 | 77,188,230 | (55,310,640 | ) | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 213,957,578 | 675,386,379 | 165,798,667 | (102,265,690 | ) | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 5,435,783,060 | $ | 4,760,396,681 | $ | 773,362,755 | $ | 875,628,445 | ||||||||
|
| |||||||||||||||
End of Period | $ | 5,649,740,638 | $ | 5,435,783,060 | $ | 939,161,422 | $ | 773,362,755 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 172,500,001 | 150,700,001 | 17,150,001 | 18,300,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 5,300,000 | 21,800,000 | 1,600,000 | 950,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | (5,400,000 | ) | — | — | (2,100,000 | ) | ||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 172,400,001 | 172,500,001 | 18,750,001 | 17,150,001 | ||||||||||||
|
|
(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 |
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, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 5,032,453 | $ | 7,920,873 | $ | 159,100 | $ | 329,020 | ||||||||
Net realized gain (loss) | (3,809,199 | ) | (737,193 | ) | 272,223 | (21,526 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 28,902,861 | (18,406,740 | ) | 898,164 | (839,345 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 30,126,115 | (11,223,060 | ) | 1,329,487 | (531,851 | ) | ||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (4,021,113 | ) | (8,103,123 | ) | (160,594 | ) | (331,490 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (4,021,113 | ) | (8,103,123 | ) | (160,594 | ) | (331,490 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 33,159,433 | 49,688,173 | — | 8,432,070 | ||||||||||||
Cost of shares redeemed | — | — | (4,858,302 | ) | — | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 33,159,433 | 49,688,173 | (4,858,302 | ) | 8,432,070 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 59,264,435 | 30,361,990 | (3,689,409 | ) | 7,568,729 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 275,331,732 | $ | 244,969,742 | $ | 13,887,013 | $ | 6,318,284 | ||||||||
|
| |||||||||||||||
End of Period | $ | 334,596,167 | $ | 275,331,732 | $ | 10,197,604 | $ | 13,887,013 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 4,750,001 | 3,950,001 | 525,001 | 225,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 550,000 | 800,000 | — | 300,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | — | — | (175,000 | ) | — | |||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 5,300,001 | 4,750,001 | 350,001 | 525,001 | ||||||||||||
|
|
(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 | 21 |
Statements of Changes in Net Assets (cont.)
FlexShares® Quality Dividend Index Fund | FlexShares® Quality Dividend Defensive Index Fund | |||||||||||||||
Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 26,638,117 | $ | 49,327,187 | $ | 5,244,195 | $ | 8,636,341 | ||||||||
Net realized gain (loss) | 50,951,698 | 111,017,426 | 11,407,104 | 20,094,542 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 21,890,721 | (23,808,241 | ) | 12,313,738 | (2,502,203 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 99,480,536 | 136,536,372 | 28,965,037 | 26,228,680 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (43,005,918 | ) | (50,127,940 | ) | (16,936,562 | ) | (8,856,044 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (43,005,918 | ) | (50,127,940 | ) | (16,936,562 | ) | (8,856,044 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 65,623,959 | 139,288,073 | 49,181,846 | 11,354,790 | ||||||||||||
Cost of shares redeemed | (88,970,462 | ) | (282,253,367 | ) | — | (21,803,484 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | (23,346,503 | ) | (142,965,294 | ) | 49,181,846 | (10,448,694 | ) | |||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 33,128,115 | (56,556,862 | ) | 61,210,321 | 6,923,942 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 1,759,107,724 | $ | 1,815,664,586 | $ | 320,090,975 | $ | 313,167,033 | ||||||||
|
| |||||||||||||||
End of Period | $ | 1,792,235,839 | $ | 1,759,107,724 | $ | 381,301,296 | $ | 320,090,975 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 39,500,001 | 42,650,001 | 7,200,001 | 7,450,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 1,600,000 | 3,100,000 | 1,150,000 | 250,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | (2,050,000 | ) | (6,250,000 | ) | — | (500,000 | ) | |||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 39,050,001 | 39,500,001 | 8,350,001 | 7,200,001 | ||||||||||||
|
|
(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.
22 | FLEXSHARES SEMIANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® Quality Dividend Dynamic Index Fund | FlexShares® International Quality Dividend Index Fund | |||||||||||||||
Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 772,247 | $ | 1,372,096 | $ | 15,991,292 | $ | 47,688,403 | ||||||||
Net realized gain (loss) | 2,260,588 | 4,811,218 | (30,547,512 | ) | (13,541,341 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 2,492,765 | (3,581,227 | ) | 55,955,772 | (135,941,569 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 5,525,600 | 2,602,087 | 41,399,552 | (101,794,507 | ) | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (637,892 | ) | (1,451,340 | ) | (12,180,189 | ) | (48,549,571 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (637,892 | ) | (1,451,340 | ) | (12,180,189 | ) | (48,549,571 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 11,255,097 | 2,093,800 | 158,272,168 | 127,597,477 | ||||||||||||
Cost of shares redeemed | (8,769,392 | ) | (17,509,790 | ) | (100,407,207 | ) | (191,787,732 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 2,485,705 | (15,415,990 | ) | 57,864,961 | (64,190,255 | ) | ||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 7,373,413 | (14,265,243 | ) | 87,084,324 | (214,534,333 | ) | ||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 44,305,419 | $ | 58,570,662 | $ | 765,166,739 | $ | 979,701,072 | ||||||||
|
| |||||||||||||||
End of Period | $ | 51,678,832 | $ | 44,305,419 | $ | 852,251,063 | $ | 765,166,739 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 1,050,001 | 1,400,001 | 34,200,001 | 37,300,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 300,000 | 50,000 | 6,800,000 | 4,800,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | (200,000 | ) | (400,000 | ) | (4,700,000 | ) | (7,900,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 1,150,001 | 1,050,001 | 36,300,001 | 34,200,001 | ||||||||||||
|
|
(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.
FLEXSHARES SEMIANNUAL REPORT | 23 |
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, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 1,971,389 | $ | 4,563,748 | $ | 793,337 | $ | 4,005,554 | ||||||||
Net realized gain (loss) | (2,379,761 | ) | (1,641,123 | ) | (4,672,738 | ) | (1,562,754 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 6,398,812 | (12,944,730 | ) | 6,142,861 | (11,833,097 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 5,990,440 | (10,022,105 | ) | 2,263,460 | (9,390,297 | ) | ||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (1,360,141 | ) | (5,084,444 | ) | (746,942 | ) | (3,934,883 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (1,360,141 | ) | (5,084,444 | ) | (746,942 | ) | (3,934,883 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 20,883,895 | 7,592,082 | 9,403,018 | 5,669,259 | ||||||||||||
Cost of shares redeemed | (17,269,699 | ) | — | (29,055,029 | ) | (20,658,934 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 3,614,196 | 7,592,082 | (19,652,011 | ) | (14,989,675 | ) | ||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 8,244,495 | (7,514,467 | ) | (18,135,493 | ) | (28,314,855 | ) | |||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 87,702,681 | $ | 95,217,148 | $ | 63,480,729 | $ | 91,795,584 | ||||||||
|
| |||||||||||||||
End of Period | $ | 95,947,176 | $ | 87,702,681 | $ | 45,345,236 | $ | 63,480,729 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 4,100,001 | 3,800,001 | 2,700,001 | 3,300,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 1,000,000 | 300,000 | 400,000 | 200,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | (800,000 | ) | — | (1,300,000 | ) | (800,000 | ) | |||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 4,300,001 | 4,100,001 | 1,800,001 | 2,700,001 | ||||||||||||
|
|
(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.
24 | FLEXSHARES SEMIANNUAL REPORT |
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, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 4,970,240 | $ | 56,165,230 | $ | 2,429,397 | $ | 26,492,467 | ||||||||
Net realized gain (loss) | (8,499,899 | ) | (25,507,752 | ) | (6,938,456 | ) | (8,785,489 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 43,833,974 | (35,763,699 | ) | 34,993,190 | (31,104,417 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 40,304,315 | (5,106,221 | ) | 30,484,131 | (13,397,439 | ) | ||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (6,634,487 | ) | (58,646,589 | ) | (3,900,546 | ) | (27,570,542 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (6,634,487 | ) | (58,646,589 | ) | (3,900,546 | ) | (27,570,542 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 46,826,166 | 204,979,683 | 48,556,430 | 218,359,896 | ||||||||||||
Cost of shares redeemed | (461,464,856 | ) | (612,747,018 | ) | (417,593,640 | ) | (92,736,712 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | (414,638,690 | ) | (407,767,335 | ) | (369,037,210 | ) | 125,623,184 | |||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | (380,968,862 | ) | (471,520,145 | ) | (342,453,625 | ) | 84,655,203 | |||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 1,641,610,038 | $ | 2,113,130,183 | $ | 904,027,223 | $ | 819,372,020 | ||||||||
|
| |||||||||||||||
End of Period | $ | 1,260,641,176 | $ | 1,641,610,038 | $ | 561,573,598 | $ | 904,027,223 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 68,954,000 | 85,904,000 | 37,750,001 | 32,700,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issuedin-kind | 1,950,000 | 8,450,000 | 2,000,000 | 8,850,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | (19,300,000 | ) | (25,400,000 | ) | (17,250,000 | ) | (3,800,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 51,604,000 | 68,954,000 | 22,500,001 | 37,750,001 | ||||||||||||
|
|
(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 |
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, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 972,356 | $ | 1,043,740 | $ | 1,478,575 | $ | 1,598,796 | ||||||||
Net realized gain (loss) | (80,516 | ) | (186,319 | ) | 163,850 | (709,479 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 1,879,502 | (1,657,657 | ) | 3,752,787 | (1,967,302 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 2,771,342 | (800,236 | ) | 5,395,212 | (1,077,985 | ) | ||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (1,305,563 | ) | (1,511,413 | ) | (1,362,447 | ) | (1,546,217 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (1,305,563 | ) | (1,511,413 | ) | (1,362,447 | ) | (1,546,217 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 6,897,150 | 39,295,437 | 39,092,171 | 12,378,133 | ||||||||||||
Cost of shares redeemed | (28,901,773 | ) | (3,539,176 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | (22,004,623 | ) | 35,756,261 | 39,092,171 | 12,378,133 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | (20,538,844 | ) | 33,444,612 | 43,124,936 | 9,753,931 | |||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 71,627,584 | $ | 38,182,972 | $ | 60,735,770 | $ | 50,981,839 | ||||||||
|
| |||||||||||||||
End of Period | $ | 51,088,740 | $ | 71,627,584 | $ | 103,860,706 | $ | 60,735,770 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 3,150,001 | 1,600,001 | 1,250,001 | 1,000,001 | ||||||||||||
Shares issued | 300,000 | 1,700,000 | 800,000 | 250,000 | ||||||||||||
Shares issuedin-kind | — | — | — | — | ||||||||||||
Shares redeemed | (1,250,000 | ) | (150,000 | ) | — | — | ||||||||||
Shares redeemedin-kind | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 2,200,001 | 3,150,001 | 2,050,001 | 1,250,001 | ||||||||||||
|
|
(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 |
Statements of Changes in Net Assets (cont.)
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | FlexShares® High YieldValue- Scored Bond Index Fund | |||||||||||||||
Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | July 17, 2018* through October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 580,505 | $ | 977,431 | $ | 1,794,560 | $ | 1,676,609 | ||||||||
Net realized gain (loss) | (149,727 | ) | (624,604 | ) | (1,041,635 | ) | (22,286 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 2,386,415 | (2,315,008 | ) | 1,136,471 | (1,565,240 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 2,817,193 | (1,962,181 | ) | 1,889,396 | 89,083 | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (583,302 | ) | (940,216 | ) | (1,996,361 | ) | (1,244,147 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (583,302 | ) | (940,216 | ) | (1,996,361 | ) | (1,244,147 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | — | 10,468,015 | 2,427,008 | — | ||||||||||||
Cost of shares redeemed | — | — | (9,537,705 | ) | — | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | — | 10,468,015 | (7,110,697 | ) | — | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 2,233,891 | 7,565,618 | (7,217,662 | ) | (1,155,064 | ) | ||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 26,423,972 | $ | 18,858,354 | $ | 48,844,986 | $ | 50,000,050 | (2) | |||||||
|
| |||||||||||||||
End of Period | $ | 28,657,863 | $ | 26,423,972 | $ | 41,627,324 | $ | 48,844,986 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 550,001 | 350,001 | 1,000,001 | 1,000,001 | (2) | |||||||||||
Shares issued | — | 150,000 | 50,000 | — | ||||||||||||
Shares issuedin-kind | — | 50,000 | — | — | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemedin-kind | — | — | (200,000 | ) | — | |||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 550,001 | 550,001 | 850,001 | 1,000,001 | ||||||||||||
|
|
* | 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 | 27 |
Statements of Changes in Net Assets (cont.)
FlexShares® Ready Access Variable Income Fund | FlexShares® Core Select Bond Fund | |||||||||||||||
Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | Six Months Ended April 30, 2019 (Unaudited) | Year Ended October 31, 2018 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | 3,480,298 | $ | 3,366,031 | $ | 640,589 | $ | 582,951 | ||||||||
Net realized gain (loss) | (183,778 | ) | 10,046 | (346,147 | ) | (179,538 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 657,865 | (425,090 | ) | 1,904,239 | (933,867 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 3,954,385 | 2,950,987 | 2,198,681 | (530,454 | ) | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributable earnings | (3,328,746 | ) | (3,138,154 | ) | (643,159 | ) | (583,175 | ) | ||||||||
Tax return of capital | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (3,328,746 | ) | (3,138,154 | ) | (643,159 | ) | (583,175 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) | ||||||||||||||||
Proceeds from shares issued | 97,946,794 | 94,240,235 | 7,170,205 | 36,542,513 | ||||||||||||
Cost of shares redeemed | (56,433,952 | ) | (45,260,520 | ) | (3,611,338 | ) | (608,373 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 41,512,842 | 48,979,715 | 3,558,867 | 35,934,140 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 42,138,481 | 48,792,548 | 5,114,389 | 34,820,511 | ||||||||||||
|
| |||||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of Period | $ | 211,349,681 | $ | 162,557,133 | $ | 38,582,899 | $ | 3,762,388 | ||||||||
|
| |||||||||||||||
End of Period | $ | 253,488,162 | $ | 211,349,681 | $ | 43,697,288 | $ | 38,582,899 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS | ||||||||||||||||
Beginning of period | 2,800,001 | 2,150,001 | 1,625,001 | 150,001 | ||||||||||||
Shares issued | 1,300,000 | 1,250,000 | — | — | ||||||||||||
Shares issuedin-kind | — | — | 300,000 | 1,500,000 | ||||||||||||
Shares redeemed | (50,000 | ) | — | — | — | |||||||||||
Shares redeemedin-kind | (700,000 | ) | (600,000 | ) | (150,000 | ) | (25,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 3,350,001 | 2,800,001 | 1,775,001 | 1,625,001 | ||||||||||||
|
|
(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.
28 | FLEXSHARES SEMIANNUAL REPORT |
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FLEXSHARES SEMIANNUAL REPORT | 29 |
FlexShares® Trust
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | 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, 2019 (Unaudited) | $ | 110.13 | $ | 1.03 | (a) | $ | 8.15 | $ | 9.18 | $ | (0.91 | ) | $ | — | $ | — | $ | (0.91 | ) | |||||||||||||
Year ended October 31, 2018 | 107.50 | 2.02 | (a) | 2.59 | 4.61 | (1.98 | ) | — | — | (1.98 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 88.32 | 1.74 | (a) | 19.13 | 20.87 | (1.69 | ) | — | — | (1.69 | ) | |||||||||||||||||||||
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 | ) | |||||||||||||||||||||
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 59.76 | 0.85 | (a) | 2.28 | 3.13 | (0.55 | ) | — | — | (0.55 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 67.51 | 1.78 | (a) | (7.39 | ) | (5.61 | ) | (2.14 | ) | — | — | (2.14 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 55.62 | 1.58 | (a) | 11.91 | (k) | 13.49 | (1.60 | ) | — | — | (1.60 | ) | ||||||||||||||||||||
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 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
30 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 118.40 |
| 8.47 | % | 8.41 | % | 0.26 | % | 0.25 | % | 1.88 | % | 1.89 | % | 13 | % | $ | 1,503,656 | ||||||||||||||||
110.13 | 4.22 | 4.19 | 0.25 | 0.25 | 1.77 | 1.77 | 15 | 1,387,665 | ||||||||||||||||||||||||||
107.50 | 23.77 | 23.72 | 0.26 | 0.25 | 1.73 | 1.74 | 22 | 1,150,199 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
| 62.34 |
| 5.32 | 5.80 | 0.40 | 0.39 | 2.88 | 2.89 | 15 | 1,034,884 | ||||||||||||||||||||||||
59.76 | (8.61 | ) | (9.48 | ) | 0.39 | 0.39 | 2.65 | 2.65 | 34 | 968,096 | ||||||||||||||||||||||||
67.51 | 24.58 | (k) | 25.38 | 0.40 | 0.39 | 2.57 | 2.57 | 22 | 985,608 | |||||||||||||||||||||||||
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 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 31 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 47.92 | $ | 0.32 | (a) | $ | 5.62 | $ | 5.94 | $ | (0.26 | ) | $ | — | $ | — | $ | (0.26 | ) | |||||||||||||
Year ended October 31, 2018 | 57.38 | 1.46 | (a) | (9.34 | ) | (7.88 | ) | (1.58 | ) | — | — | (1.58 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 47.52 | 1.28 | (a) | 9.80 | 11.08 | (1.22 | ) | — | — | (1.22 | ) | |||||||||||||||||||||
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 | ) | ||||||||||||||||||||
FlexShares® Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 26.44 | 0.24 | (a) | 1.62 | 1.86 | (0.24 | ) | — | — | (0.24 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 29.14 | 0.93 | (a) | (2.53 | ) | (1.60 | ) | (0.78 | ) | — | (0.32 | ) | (1.10 | ) | ||||||||||||||||||
Year ended October 31, 2017 | 23.97 | 0.59 | (a) | 5.27 | 5.86 | (0.69 | ) | — | — | (0.69 | ) | |||||||||||||||||||||
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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
32 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 53.60 |
| 12.47 | % | 14.01 | % | 0.60 | % | 0.59 | % | 1.24 | % | 1.25 | % | 23 | % | $ | 584,261 | ||||||||||||||||
47.92 | (14.05 | ) | (15.22 | ) | 0.59 | 0.59 | 2.56 | 2.56 | 49 | 488,736 | ||||||||||||||||||||||||
57.38 | 23.56 | 23.47 | 0.60 | 0.59 | 2.44 | 2.44 | 34 | 568,071 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
| 28.06 |
| 7.12 | 7.12 | 0.45 | (i) | 0.05 | (i) | 1.45 | 1.85 | 2 | 8,419 | ||||||||||||||||||||||
26.44 | (5.73 | ) | (6.19 | ) | 0.46 | (i) | 0.05 | (i) | 2.84 | 3.25 | 9 | 7,933 | ||||||||||||||||||||||
29.14 | 24.75 | 24.84 | 0.46 | (i) | 0.05 | (i) | 1.78 | 2.18 | 6 | 18,941 | ||||||||||||||||||||||||
| 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 | 33 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | 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, 2019 (Unaudited) | $ | 26.04 | $ | 0.12 | (a) | $ | 3.40 | $ | 3.52 | $ | (0.13 | ) | $ | — | $ | — | $ | (0.13 | ) | |||||||||||||
Year ended October 31, 2018 | 30.58 | 0.63 | (a) | (4.35 | ) | (3.72 | ) | (0.79 | ) | — | (0.03 | ) | (0.82 | ) | ||||||||||||||||||
Year ended October 31, 2017 | 25.82 | 0.63 | (a) | 4.77 | 5.40 | (0.64 | ) | — | — | (0.64 | ) | |||||||||||||||||||||
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, 2019 (Unaudited) | 33.44 | 0.34 | (a) | 0.92 | 1.26 | (0.29 | ) | — | — | (0.29 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 31.83 | 0.54 | (a) | 1.58 | 2.12 | (0.51 | ) | — | — | (0.51 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 26.15 | 0.49 | (a) | 5.65 | 6.14 | (0.46 | ) | — | — | (0.46 | ) | |||||||||||||||||||||
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 | — | — | — | — |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
34 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 29.43 |
| 13.58 | % | 13.70 | % | 0.65 | %(i) | 0.06 | %(i) | 0.26 | % | 0.85 | % | 1 | % | $ | 5,885 | ||||||||||||||||
26.04 | (12.40 | ) | (12.44 | ) | 0.65 | (i) | 0.05 | (i) | 1.45 | 2.05 | 6 | 4,557 | ||||||||||||||||||||||
30.58 | 21.16 | 20.75 | 0.65 | (i) | 0.05 | (i) | 1.67 | 2.27 | 4 | 41,285 | ||||||||||||||||||||||||
| 25.82 |
| 7.04 | 7.12 | 0.72 | (i) | 0.05 | (i) | 1.81 | 2.47 | 4 | 33,567 | ||||||||||||||||||||||
| 34.41 |
| 3.86 | 3.83 | 0.33 | 0.32 | 2.07 | 2.08 | 35 | 82,596 | ||||||||||||||||||||||||
33.44 | 6.63 | 6.30 | 0.33 | 0.32 | 1.56 | 1.57 | 94 | 61,859 | ||||||||||||||||||||||||||
31.83 | 23.65 | 24.08 | 0.34 | 0.32 | 1.65 | 1.67 | 64 | 27,055 | ||||||||||||||||||||||||||
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 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 35 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® STOXX® US ESG Impact Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 64.33 | $ | 0.63 | (a) | $ | 5.61 | $ | 6.24 | $ | (0.51 | ) | $ | — | $ | — | $ | (0.51 | ) | |||||||||||||
Year ended October 31, 2018 | 60.49 | 1.09 | (a) | 3.84 | 4.93 | (1.09 | ) | — | — | (1.09 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 49.96 | 1.05 | (a) | 10.45 | 11.50 | (0.97 | ) | — | — | (0.97 | ) | |||||||||||||||||||||
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, 2019 (Unaudited) | 91.61 | 1.06 | (a) | 6.90 | 7.96 | (0.86 | ) | — | — | (0.86 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 91.97 | 1.95 | (a) | (0.61 | ) | 1.34 | (1.70 | ) | — | — | (1.70 | ) | ||||||||||||||||||||
Year ended October 31, 2017 | 75.52 | 1.56 | (a) | 16.67 | (k) | 18.23 | (1.78 | ) | — | — | (1.78 | ) | ||||||||||||||||||||
For the period 07/13/16* through 10/31/16 | 75.00 | 0.41 | (a) | 0.34 | 0.75 | (0.23 | ) | — | — | (0.23 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
36 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 70.06 |
| 9.81 | % | 9.81 | % | 0.33 | % | 0.32 | % | 1.94 | % | 1.95 | % | 42 | % | $ | 45,537 | ||||||||||||||||
64.33 | 8.13 | 7.97 | 0.33 | 0.32 | 1.66 | 1.67 | 110 | 28,946 | ||||||||||||||||||||||||||
60.49 | 23.19 | 23.30 | 0.35 | 0.32 | 1.82 | 1.85 | 67 | 13,610 | ||||||||||||||||||||||||||
| 49.96 |
| 0.24 | 0.28 | 0.37 | 0.32 | 1.75 | 1.80 | 20 | 4,996 | ||||||||||||||||||||||||
| 98.71 |
| 8.80 | 8.63 | 0.43 | 0.42 | 2.32 | 2.33 | 36 | 74,034 | ||||||||||||||||||||||||
91.61 | 1.38 | 1.71 | 0.43 | 0.42 | 2.03 | 2.04 | 78 | 73,284 | ||||||||||||||||||||||||||
91.97 | 24.37 | (k) | 24.55 | 0.45 | 0.42 | 1.81 | 1.83 | 64 | 32,189 | |||||||||||||||||||||||||
| 75.52 |
| 1.00 | 1.03 | 0.45 | 0.42 | 1.74 | 1.77 | 22 | 7,552 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 37 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 31.51 | $ | 0.56 | (a) | $ | 1.21 | $ | 1.77 | $ | (0.51 | ) | $ | — | $ | — | $ | (0.51 | ) | |||||||||||||
Year ended October 31, 2018 | 31.59 | 0.91 | (a) | (0.13 | ) | 0.78 | (0.86 | ) | — | — | (0.86 | ) | ||||||||||||||||||||
Year ended October 31, 2017 | 27.40 | 0.70 | (a) | 4.13 | (k) | 4.83 | (0.64 | ) | — | — | (0.64 | ) | ||||||||||||||||||||
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 | ) | |||||||||||||||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 45.09 | 0.61 | (a) | 4.90 | 5.51 | (0.51 | ) | — | — | (0.51 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 47.85 | 1.36 | (a) | (2.71 | ) | (1.35 | ) | (1.41 | ) | — | — | (1.41 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 43.49 | 1.37 | (a) | 4.40 | 5.77 | (1.41 | ) | — | — | (1.41 | ) | |||||||||||||||||||||
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 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
38 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 32.77 |
| 5.73 | % | 6.09 | % | 0.47 | % | 0.46 | % | 3.53 | % | 3.53 | % | 12 | % | $ | 5,649,741 | ||||||||||||||||
31.51 | 2.33 | 2.01 | 0.46 | 0.46 | 2.72 | 2.72 | 30 | 5,435,783 | ||||||||||||||||||||||||||
31.59 | 17.81 | (k) | 17.97 | 0.47 | 0.46 | 2.36 | 2.36 | 18 | 4,760,397 | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 50.09 |
| 12.35 | 13.06 | 0.48 | 0.47 | 2.60 | 2.61 | 9 | 939,161 | ||||||||||||||||||||||||
45.09 | (2.90 | ) | (3.25 | ) | 0.47 | 0.47 | 2.88 | 2.89 | 13 | 773,363 | ||||||||||||||||||||||||
47.85 | 13.44 | 13.23 | 0.48 | 0.47 | 2.97 | 2.98 | 12 | 875,628 | ||||||||||||||||||||||||||
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 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 39 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Global Quality Real Estate Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 57.96 | $ | 1.01 | (a) | $ | 4.99 | $ | 6.00 | $ | (0.83 | ) | $ | — | $ | — | $ | (0.83 | ) | |||||||||||||
Year ended October 31, 2018 | 62.02 | 1.80 | (a) | (3.99 | ) | (2.19 | ) | (1.87 | ) | — | — | (1.87 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 57.12 | 0.99 | (a) | 5.54 | 6.53 | (1.63 | ) | — | — | (1.63 | ) | |||||||||||||||||||||
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, 2019 (Unaudited) | 26.45 | 0.36 | (a) | 2.67 | 3.03 | (0.34 | ) | — | — | (0.34 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 28.08 | 0.80 | (a) | (1.64 | ) | (0.84 | ) | (0.79 | ) | 0.00 | (h) | — | (0.79 | ) | ||||||||||||||||||
Year ended October 31, 2017 | 25.63 | 0.66 | (a) | 2.54 | 3.20 | (0.75 | ) | — | — | (0.75 | ) | |||||||||||||||||||||
For the period 11/23/15* through 10/31/16 | 25.00 | 0.86 | (a) | 0.51 | (g) | 1.37 | (0.74 | ) | — | — | (0.74 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
40 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 63.13 |
| 10.53 | % | 10.95 | % | 0.46 | % | 0.45 | % | 3.35 | % | 3.36 | % | 28 | % | $ | 334,596 | ||||||||||||||||
57.96 | (3.69 | ) | (3.95 | ) | 0.46 | 0.45 | 2.92 | 2.92 | 61 | 275,332 | ||||||||||||||||||||||||
62.02 | 11.71 | 11.71 | 0.46 | 0.45 | 1.67 | 1.67 | 64 | 244,970 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 29.14 |
| 11.60 | 11.47 | 0.58 | (i) | 0.11 | (i) | 2.15 | 2.62 | 2 | 10,198 | ||||||||||||||||||||||
26.45 | (3.09 | ) | (3.32 | ) | 0.59 | (i) | 0.11 | (i) | 2.39 | 2.87 | 5 | 13,887 | ||||||||||||||||||||||
28.08 | 12.73 | 13.05 | 0.65 | (i) | 0.11 | (i) | 1.88 | 2.42 | 11 | 6,318 | ||||||||||||||||||||||||
| 25.63 |
| 5.56 | 5.60 | 0.72 | (i) | 0.11 | (i) | 3.03 | 3.64 | 11 | 1,282 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 41 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Quality Dividend Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 44.53 | $ | 0.67 | (a) | $ | 1.79 | $ | 2.46 | $ | (0.55 | ) | $ | (0.54 | ) | $ | — | $ | (1.09 | ) | ||||||||||||
Year ended October 31, 2018 | 42.57 | 1.20 | (a) | 1.98 | 3.18 | (1.22 | ) | — | — | (1.22 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 37.11 | 1.23 | (a) | 5.43 | 6.66 | (1.20 | ) | — | — | (1.20 | ) | |||||||||||||||||||||
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 | ) | |||||||||||||||||||||
FlexShares® Quality Dividend Defensive Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 44.46 | 0.67 | (a) | 2.72 | 3.39 | (0.55 | ) | (1.64 | ) | — | (2.19 | ) | ||||||||||||||||||||
Year ended October 31, 2018 | 42.04 | 1.21 | (a) | 2.45 | 3.66 | (1.24 | ) | — | — | (1.24 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 36.82 | 1.18 | (a) | 5.18 | 6.36 | (1.14 | ) | — | — | (1.14 | ) | |||||||||||||||||||||
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 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
42 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 45.90 |
| 5.93 | % | 5.89 | % | 0.38 | % | 0.37 | % | 3.11 | % | 3.12 | % | 47 | % | $ | 1,792,236 | ||||||||||||||||
44.53 | 7.42 | 7.40 | 0.37 | 0.37 | 2.64 | 2.64 | 76 | 1,759,108 | ||||||||||||||||||||||||||
42.57 | 18.10 | 18.03 | 0.38 | 0.37 | 3.00 | 3.00 | 89 | 1,815,665 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
| 45.66 |
| 8.54 | 8.52 | 0.38 | 0.37 | 3.09 | 3.10 | 34 | 381,301 | ||||||||||||||||||||||||
44.46 | 8.69 | 8.74 | 0.38 | 0.37 | 2.70 | 2.71 | 94 | 320,091 | ||||||||||||||||||||||||||
42.04 | 17.44 | 17.41 | 0.38 | 0.37 | 2.94 | 2.95 | 74 | 313,167 | ||||||||||||||||||||||||||
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 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 43 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Quality Dividend Dynamic Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 42.20 | $ | 0.64 | (a) | $ | 2.65 | $ | 3.29 | $ | (0.55 | ) | $ | — | $ | — | $ | (0.55 | ) | |||||||||||||
Year ended October 31, 2018 | 41.84 | 1.15 | (a) | 0.40 | 1.55 | (1.19 | ) | — | — | (1.19 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 35.32 | 1.19 | (a) | 6.45 | 7.64 | (1.12 | ) | — | — | (1.12 | ) | |||||||||||||||||||||
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 | ) | |||||||||||||||||||||
FlexShares® International Quality Dividend Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 22.37 | 0.49 | (a) | 1.00 | 1.49 | (0.38 | ) | — | — | (0.38 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 26.27 | 1.22 | (a) | (3.86 | ) | (2.64 | ) | (1.26 | ) | — | — | (1.26 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 22.45 | 1.06 | (a) | 3.69 | 4.75 | (0.93 | ) | — | — | (0.93 | ) | |||||||||||||||||||||
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 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
44 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 44.94 |
| 7.98 | % | 7.91 | % | 0.38 | % | 0.37 | % | 3.03 | % | 3.04 | % | 40 | % | $ | 51,679 | ||||||||||||||||
42.20 | 3.59 | 3.67 | 0.38 | 0.37 | 2.61 | 2.62 | 77 | 44,305 | ||||||||||||||||||||||||||
41.84 | 21.81 | 21.59 | 0.38 | 0.37 | 2.99 | 3.00 | 63 | 58,571 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
| 23.48 |
| 6.78 | 7.77 | 0.48 | 0.47 | 4.34 | 4.35 | 36 | 852,251 | ||||||||||||||||||||||||
22.37 | (10.48 | ) | (11.30 | ) | 0.47 | 0.47 | 4.77 | 4.78 | 71 | 765,167 | ||||||||||||||||||||||||
26.27 | 21.50 | 21.80 | 0.48 | 0.47 | 4.27 | 4.28 | 69 | 979,701 | ||||||||||||||||||||||||||
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 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 45 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | 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 Defensive Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 21.39 | $ | 0.48 | (a) | $ | 0.78 | $ | 1.26 | $ | (0.34 | ) | $ | — | $ | — | $ | (0.34 | ) | |||||||||||||
Year ended October 31, 2018 | 25.06 | 1.14 | (a) | (3.54 | ) | (2.40 | ) | (1.27 | ) | — | — | (1.27 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 22.16 | 0.99 | (a) | 2.81 | 3.80 | (0.90 | ) | — | — | (0.90 | ) | |||||||||||||||||||||
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 | ) | |||||||||||||||||||
FlexShares® International Quality Dividend Dynamic Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 23.51 | 0.42 | (a) | 1.64 | 2.06 | (0.38 | ) | — | — | (0.38 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 27.82 | 1.32 | (a) | (4.34 | ) | (3.02 | ) | (1.29 | ) | — | — | (1.29 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 23.47 | 1.11 | (a) | 4.08 | 5.19 | (0.84 | ) | — | — | (0.84 | ) | |||||||||||||||||||||
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 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
46 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 22.31 |
| 6.00 | % | 6.49 | % | 0.48 | % | 0.47 | % | 4.42 | % | 4.43 | % | 32 | % | $ | 95,947 | ||||||||||||||||
21.39 | (10.03 | ) | (10.91 | ) | 0.48 | 0.47 | 4.68 | 4.68 | 69 | 87,703 | ||||||||||||||||||||||||
25.06 | 17.45 | 17.69 | 0.48 | 0.47 | 4.18 | 4.19 | 72 | 95,217 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 25.19 |
| 8.99 | 9.68 | 0.48 | 0.47 | 3.50 | 3.51 | 49 | 45,345 | ||||||||||||||||||||||||
23.51 | (11.34 | ) | (12.11 | ) | 0.48 | 0.47 | 4.83 | 4.83 | 75 | 63,481 | ||||||||||||||||||||||||
27.82 | 22.37 | 22.91 | 0.48 | 0.47 | 4.19 | 4.20 | 76 | 91,796 | ||||||||||||||||||||||||||
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 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 47 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® iBoxx3-Year Target Duration TIPS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 23.81 | $ | 0.08 | (a) | $ | 0.64 | $ | 0.72 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | |||||||||||||
Year ended October 31, 2018 | 24.60 | 0.68 | (a) | (0.78 | ) | (0.10 | ) | (0.69 | ) | — | — | (0.69 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 24.82 | 0.37 | (a) | (0.27 | ) | 0.10 | (0.32 | ) | — | — | (0.32 | ) | ||||||||||||||||||||
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 | ) | ||||||||||||||||||
FlexShares® iBoxx5-Year Target Duration TIPS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 23.95 | 0.08 | (a) | 1.05 | 1.13 | (0.12 | ) | — | — | (0.12 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 25.06 | 0.71 | (a) | (1.08 | ) | (0.37 | ) | (0.74 | ) | — | — | (0.74 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 25.45 | 0.47 | (a) | (0.45 | ) | 0.02 | (0.41 | ) | — | — | (0.41 | ) | ||||||||||||||||||||
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 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
48 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 24.43 |
| 3.04 | % | 3.13 | % | 0.19 | % | 0.18 | % | 0.70 | % | 0.71 | % | 22 | % | $ | 1,260,641 | ||||||||||||||||
23.81 | (0.41 | ) | (0.49 | ) | 0.18 | 0.18 | 2.79 | 2.80 | 85 | 1,641,610 | ||||||||||||||||||||||||
24.60 | 0.42 | 0.46 | 0.21 | 0.20 | 1.49 | 1.50 | 134 | 2,113,130 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 24.96 |
| 4.72 | 4.72 | 0.19 | 0.18 | 0.69 | 0.70 | 15 | 561,574 | ||||||||||||||||||||||||
23.95 | (1.51 | ) | (1.51 | ) | 0.18 | 0.18 | 2.88 | 2.88 | 65 | 904,027 | ||||||||||||||||||||||||
25.06 | 0.08 | 0.08 | 0.21 | 0.20 | 1.86 | 1.87 | 87 | 819,372 | ||||||||||||||||||||||||||
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 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 49 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Disciplined Duration MBS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 22.74 | $ | 0.32 | (a) | $ | 0.57 | $ | 0.89 | $ | (0.41 | ) | $ | — | $ | — | $ | (0.41 | ) | |||||||||||||
Year ended October 31, 2018 | 23.86 | 0.49 | (a) | (0.88 | ) | (0.39 | ) | (0.73 | ) | — | — | (0.73 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 24.74 | 0.39 | (a) | (0.50 | ) | (0.11 | ) | (0.77 | ) | — | — | (0.77 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||||
FlexShares® Credit-Scored US Corporate Bond Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 48.59 | 0.81 | (a) | 2.03 | 2.84 | (0.77 | ) | — | — | (0.77 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 50.98 | 1.40 | (a) | (2.43 | ) | (1.03 | ) | (1.36 | ) | — | — | (1.36 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 51.49 | 1.26 | (a) | (0.34 | ) | 0.92 | (1.23 | ) | (0.20 | ) | — | (1.43 | ) | |||||||||||||||||||
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 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
50 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 23.22 |
| 3.96 | % | 3.68 | % | 0.21 | % | 0.20 | % | 2.78 | % | 2.79 | % | 27 | % | $ | 51,089 | ||||||||||||||||
22.74 | (1.65 | ) | (1.31 | ) | 0.21 | 0.20 | 2.09 | 2.10 | 160 | 71,628 | ||||||||||||||||||||||||
23.86 | (0.44 | ) | (0.53 | ) | 0.21 | 0.20 | 1.61 | 1.62 | 61 | 38,183 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 50.66 |
| 5.90 | 5.79 | 0.23 | 0.22 | 3.30 | 3.31 | 22 | 103,861 | ||||||||||||||||||||||||
48.59 | (2.05 | ) | (2.23 | ) | 0.23 | 0.22 | 2.83 | 2.84 | 76 | 60,736 | ||||||||||||||||||||||||
50.98 | 1.85 | 1.99 | 0.23 | 0.22 | 2.48 | 2.49 | 65 | 50,982 | ||||||||||||||||||||||||||
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 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 51 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | 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 Long Corporate Bond Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 48.04 | $ | 1.06 | (a) | $ | 4.07 | $ | 5.13 | $ | (1.06 | ) | $ | — | $ | — | $ | (1.06 | ) | |||||||||||||
Year ended October 31, 2018 | 53.88 | 2.07 | (a) | (5.87 | ) | (3.80 | ) | (2.04 | ) | — | — | (2.04 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 53.83 | 2.06 | (a) | 0.74 | 2.80 | (2.07 | ) | (0.68 | ) | — | (2.75 | ) | ||||||||||||||||||||
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® High Yield Value-Scored Bond Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 48.84 | 2.16 | (a) | 0.36 | 2.52 | (2.39 | ) | — | — | (2.39 | ) | |||||||||||||||||||||
For the period 07/17/18* through 10/31/18 | 50.00 | 1.68 | (a) | (1.60 | ) | 0.08 | (1.24 | ) | — | — | (1.24 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
52 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 52.11 |
| 10.79 | % | 11.05 | % | 0.23 | % | 0.22 | % | 4.28 | % | 4.29 | % | 22 | % | $ | 28,658 | ||||||||||||||||
48.04 | (7.24 | ) | (7.86 | ) | 0.23 | 0.22 | 4.05 | 4.06 | 93 | 26,424 | ||||||||||||||||||||||||
53.88 | 5.58 | 4.25 | 0.24 | 0.22 | 3.92 | 3.94 | 91 | 18,858 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 48.97 |
| 5.42 | 5.61 | 0.38 | 0.37 | 9.13 | 9.13 | 30 | 41,627 | ||||||||||||||||||||||||
| 48.84 |
| 0.13 | 0.13 | 0.38 | 0.37 | 11.56 | 11.57 | 18 | 48,845 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 53 |
Financial Highlights (cont.)
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income | Net Realized and Unrealized Gain (Loss) | Total from Operations | Net Investment Income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Ready Access Variable Income Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | $ | 75.48 | $ | 1.02 | (a) | $ | 0.17 | $ | 1.19 | $ | (1.00 | ) | $ | — | $ | — | $ | (1.00 | ) | |||||||||||||
Year ended October 31, 2018 | 75.61 | 1.58 | (a) | (0.24 | ) | 1.34 | (1.47 | ) | — | — | (1.47 | ) | ||||||||||||||||||||
Year ended October 31, 2017 | 75.56 | 0.89 | (a) | 0.00 | (h) | 0.89 | (0.84 | ) | — | — | (0.84 | ) | ||||||||||||||||||||
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 | ) | |||||||||||||||||||||
FlexShares® Core Select Bond Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2019 (Unaudited) | 23.74 | 0.36 | (a) | 0.89 | 1.25 | (0.37 | ) | — | — | (0.37 | ) | |||||||||||||||||||||
Year ended October 31, 2018 | 25.08 | 0.63 | (a) | (1.31 | ) | (0.68 | ) | (0.66 | ) | — | — | (0.66 | ) | |||||||||||||||||||
For the period 11/18/16* through 10/31/17 | 25.00 | 0.55 | (a) | 0.15 | 0.70 | (0.62 | ) | — | — | (0.62 | ) |
* | 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 gain (loss) 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%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
54 | FLEXSHARES SEMIANNUAL REPORT |
| 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 before reimbursements | Net investment Income net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 75.67 |
| 1.59 | % | 1.56 | % | 0.26 | % | 0.25 | % | 2.71 | % | 2.72 | % | 47 | % | $ | 253,488 | ||||||||||||||||
75.48 | 1.80 | 1.91 | 0.26 | 0.25 | 2.09 | 2.10 | 131 | 211,350 | ||||||||||||||||||||||||||
75.61 | 1.18 | 1.06 | 0.26 | 0.25 | 1.17 | 1.18 | 71 | 162,557 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
| 24.62 |
| 5.30 | 5.21 | 0.36 | (i) | 0.17 | (i) | 2.81 | 3.01 | 74 | 43,697 | ||||||||||||||||||||||
23.74 | (2.73 | ) | (2.92 | ) | 0.36 | (i) | 0.16 | (i) | 2.41 | 2.61 | 53 | 38,583 | ||||||||||||||||||||||
| 25.08 |
| 2.86 | 3.19 | 0.43 | (i) | 0.16 | (i) | 2.08 | 2.35 | 99 | 3,762 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 55 |
FlexShares® Morningstar US Market Factor Tilt Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.4% | ||||||||
Aerospace & Defense – 1.8% | ||||||||
AAR Corp. | 8,128 | $ | 274,483 | |||||
Aerojet Rocketdyne Holdings, Inc.* (a) | 12,954 | 438,623 | ||||||
Aerovironment, Inc.* | 1,778 | 121,900 | ||||||
Arconic, Inc. | 12,700 | 272,796 | ||||||
Astronics Corp.* | 1,152 | 38,408 | ||||||
Axon Enterprise, Inc.* (a) | 5,334 | 338,709 | ||||||
Boeing Co. (The) | 19,050 | 7,194,995 | ||||||
BWX Technologies, Inc.(a) | 2,032 | 103,835 | ||||||
Curtiss-Wright Corp. | 3,302 | 376,230 | ||||||
General Dynamics Corp. | 8,636 | 1,543,426 | ||||||
Harris Corp. | 3,556 | 599,186 | ||||||
HEICO Corp.(a) | 8,305 | 876,427 | ||||||
Hexcel Corp. | 7,112 | 502,890 | ||||||
Huntington Ingalls Industries, Inc. | 2,540 | 565,353 | ||||||
Kratos Defense & Security Solutions, Inc.* (a) | 12,954 | 205,710 | ||||||
L3 Technologies, Inc. | 2,540 | 555,193 | ||||||
Lockheed Martin Corp. | 8,128 | 2,709,306 | ||||||
Mercury Systems, Inc.* | 3,810 | 278,206 | ||||||
Moog, Inc., Class A | 6,096 | 570,829 | ||||||
National Presto Industries, Inc. | 508 | 54,102 | ||||||
Northrop Grumman Corp. | 6,096 | 1,767,291 | ||||||
Raytheon Co. | 8,636 | 1,533,667 | ||||||
Spirit AeroSystems Holdings, Inc., Class A | 9,398 | 816,686 | ||||||
Teledyne Technologies, Inc.* | 2,794 | 694,337 | ||||||
Textron, Inc. | 9,652 | 511,556 | ||||||
TransDigm Group, Inc.* | 762 | 367,680 | ||||||
Triumph Group, Inc. | 17,780 | 421,919 | ||||||
United Technologies Corp. | 27,335 | 3,898,244 | ||||||
Wesco Aircraft Holdings, Inc.* | 11,684 | 98,613 | ||||||
27,730,600 | ||||||||
Air Freight & Logistics – 0.6% | ||||||||
Air Transport Services Group, Inc.* (a) | 18,288 | 430,317 |
Investments | Shares | Value | ||||||
Air Freight & Logistics – (continued) | ||||||||
Atlas Air Worldwide Holdings, Inc.* | 4,318 | $ | 208,516 | |||||
CH Robinson Worldwide, Inc. | 3,556 | 288,036 | ||||||
Echo Global Logistics, Inc.* (a) | 1,270 | 29,134 | ||||||
Expeditors International of Washington, Inc. | 4,826 | 383,281 | ||||||
FedEx Corp. | 12,192 | 2,309,896 | ||||||
Forward Air Corp. | 3,302 | 209,083 | ||||||
Hub Group, Inc., Class A* | 10,414 | 432,910 | ||||||
United Parcel Service, Inc., Class B | 32,766 | 3,480,404 | ||||||
XPO Logistics, Inc.* (a) | 8,890 | 605,231 | ||||||
8,376,808 | ||||||||
Airlines – 0.6% | ||||||||
Alaska Air Group, Inc.(a) | 5,588 | 345,897 | ||||||
Allegiant Travel Co. | 3,556 | 522,305 | ||||||
American Airlines Group, Inc.(a) | 30,480 | 1,041,806 | ||||||
Delta Air Lines, Inc. | 35,052 | 2,043,181 | ||||||
Hawaiian Holdings, Inc.(a) | 10,922 | 308,110 | ||||||
JetBlue Airways Corp.* | 18,796 | 348,666 | ||||||
SkyWest, Inc. | 19,558 | 1,204,577 | ||||||
Southwest Airlines Co. | 21,590 | 1,170,826 | ||||||
Spirit Airlines, Inc.* (a) | 19,812 | 1,077,377 | ||||||
United Continental Holdings, Inc.* | 16,256 | 1,444,508 | ||||||
9,507,253 | ||||||||
Auto Components – 0.5% | ||||||||
Adient plc | 37,084 | 856,640 | ||||||
American Axle & Manufacturing Holdings, Inc.* (a) | 48,768 | 719,328 | ||||||
Aptiv plc | 10,668 | 914,248 | ||||||
Autoliv, Inc. | 1,016 | 79,746 | ||||||
BorgWarner, Inc. | 254 | 10,610 | ||||||
Cooper Tire & Rubber Co.(a) | 16,002 | 477,820 | ||||||
Cooper-Standard Holdings, Inc.* | 7,620 | 386,105 |
See Accompanying Notes to the Financial Statements.
56 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Dana, Inc. | 22,606 | $ | 440,817 | |||||
Dorman Products, Inc.* (a) | 2,032 | 178,145 | ||||||
Fox Factory Holding Corp.* | 2,540 | 197,104 | ||||||
Garrett Motion, Inc.* | 26,775 | 503,370 | ||||||
Gentex Corp. | 10,160 | 233,985 | ||||||
Gentherm, Inc.* | 3,810 | 161,392 | ||||||
Goodyear Tire & Rubber Co. (The) | 23,368 | 448,899 | ||||||
LCI Industries(a) | 1,270 | 111,570 | ||||||
Lear Corp. | 5,334 | 762,762 | ||||||
Modine Manufacturing Co.* | 29,718 | 439,529 | ||||||
Motorcar Parts of America, Inc.* (a) | 9,144 | 188,915 | ||||||
Standard Motor Products, Inc.(a) | 3,810 | 190,386 | ||||||
Stoneridge, Inc.* | 8,382 | 263,446 | ||||||
Superior Industries International, Inc.(a) | 25,654 | 126,987 | ||||||
Tenneco, Inc., Class A | 1,016 | 22,271 | ||||||
Tower International, Inc.(a) | 9,398 | 219,349 | ||||||
Veoneer, Inc.* (a) | 9,435 | 208,230 | ||||||
Visteon Corp.* | 2,032 | 134,153 | ||||||
8,275,807 | ||||||||
Automobiles – 0.5% | ||||||||
Ford Motor Co.(a) | 236,982 | 2,476,462 | ||||||
General Motors Co. | 62,738 | 2,443,645 | ||||||
Tesla, Inc.* | 5,334 | 1,273,172 | ||||||
Thor Industries, Inc.(a) | 19,304 | 1,271,555 | ||||||
Winnebago Industries, Inc.(a) | 1,270 | 44,920 | ||||||
7,509,754 | ||||||||
Banks – 7.6% | ||||||||
1st Source Corp. | 3,048 | 142,738 | ||||||
Ameris Bancorp(a) | 3,302 | 120,391 | ||||||
Associated Banc-Corp. | 60,452 | 1,371,656 | ||||||
Banc of California, Inc. | 10,414 | 151,107 | ||||||
BancFirst Corp. | 3,556 | 200,558 | ||||||
Bancorp, Inc. (The)* | 18,288 | 186,720 | ||||||
BancorpSouth Bank | 6,604 | 201,290 | ||||||
Bank of America Corp. | 440,436 | 13,468,533 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Bank of Hawaii Corp.(a) | 2,794 | $ | 230,170 | |||||
Bank OZK | 45,974 | 1,501,051 | ||||||
BankUnited, Inc. | 43,180 | 1,579,524 | ||||||
Banner Corp. | 2,794 | 148,138 | ||||||
BB&T Corp. | 35,306 | 1,807,667 | ||||||
Berkshire Hills Bancorp, Inc.(a) | 16,002 | 479,900 | ||||||
BOK Financial Corp. | 4,572 | 398,404 | ||||||
Boston Private Financial Holdings, Inc. | 7,112 | 81,432 | ||||||
Bridge Bancorp, Inc. | 5,334 | 165,301 | ||||||
Brookline Bancorp, Inc. | 11,430 | 172,021 | ||||||
Bryn Mawr Bank Corp. | 2,540 | 96,749 | ||||||
Cadence Bancorp | 49,132 | 1,117,753 | ||||||
Camden National Corp. | 2,286 | 100,538 | ||||||
Cathay General Bancorp | 6,350 | 233,616 | ||||||
CenterState Bank Corp. | 3,810 | 94,031 | ||||||
Central Pacific Financial Corp. | 4,064 | 121,961 | ||||||
Chemical Financial Corp. | 6,858 | 301,272 | ||||||
CIT Group, Inc. | 13,970 | 744,182 | ||||||
Citigroup, Inc. | 102,362 | 7,236,993 | ||||||
Citizens Financial Group, Inc. | 23,876 | 864,311 | ||||||
City Holding Co.(a) | 2,540 | 201,625 | ||||||
Columbia Banking System, Inc. | 6,350 | 238,379 | ||||||
Comerica, Inc. | 10,414 | 818,436 | ||||||
Commerce Bancshares, Inc. | 1,943 | 117,415 | ||||||
Community Bank System, Inc.(a) | 5,588 | 371,378 | ||||||
Community Trust Bancorp, Inc. | 3,302 | 139,509 | ||||||
ConnectOne Bancorp, Inc. | 4,318 | 94,262 | ||||||
Cullen/Frost Bankers, Inc.(a) | 1,778 | 180,805 | ||||||
CVB Financial Corp.(a) | 12,192 | 264,566 | ||||||
Eagle Bancorp, Inc.* | 1,778 | 98,252 | ||||||
East West Bancorp, Inc. | 11,938 | 614,568 | ||||||
FB Financial Corp. | 1,270 | 46,660 | ||||||
Fifth Third Bancorp | 42,138 | 1,214,417 | ||||||
First Bancorp | 33,528 | 378,866 | ||||||
First Busey Corp. | 11,176 | 288,788 | ||||||
First Citizens BancShares, Inc., Class A | 762 | 341,566 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 57 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
First Commonwealth Financial Corp. | 10,160 | $ | 138,278 | |||||
First Financial Bancorp | 11,430 | 286,893 | ||||||
First Financial Bankshares, Inc. | 4,318 | 265,643 | ||||||
First Foundation, Inc. | 4,572 | 64,968 | ||||||
First Hawaiian, Inc. | 32,766 | 905,980 | ||||||
First Horizon National Corp. | 13,970 | 210,807 | ||||||
First Internet Bancorp | 8,890 | 194,602 | ||||||
First Interstate BancSystem, Inc., Class A | 6,858 | 289,819 | ||||||
First Merchants Corp. | 6,604 | 242,169 | ||||||
First Midwest Bancorp, Inc. | 6,350 | 136,334 | ||||||
First of Long Island Corp. (The) | 7,112 | 165,496 | ||||||
First Republic Bank | 6,350 | 670,687 | ||||||
Flushing Financial Corp. | 10,668 | 241,097 | ||||||
FNB Corp.(a) | 125,222 | 1,518,943 | ||||||
Franklin Financial Network, Inc. | 3,810 | 105,347 | ||||||
Fulton Financial Corp.(a) | 60,198 | 1,038,416 | ||||||
Glacier Bancorp, Inc.(a) | 5,588 | 237,993 | ||||||
Great Southern Bancorp, Inc. | 1,016 | 58,877 | ||||||
Great Western Bancorp, Inc. | 21,082 | 741,454 | ||||||
Hancock Whitney Corp. | 34,290 | 1,499,845 | ||||||
Hanmi Financial Corp. | 2,286 | 54,224 | ||||||
Heartland Financial USA, Inc.(a) | 1,270 | 57,023 | ||||||
Hilltop Holdings, Inc. | 3,810 | 80,124 | ||||||
Home BancShares, Inc.(a) | 61,214 | 1,174,697 | ||||||
Hope Bancorp, Inc.(a) | 57,912 | 814,243 | ||||||
Huntington Bancshares, Inc.(a) | 64,516 | 898,063 | ||||||
IBERIABANK Corp. | 8,636 | 686,562 | ||||||
Independent Bank Corp. | 4,572 | 366,812 | ||||||
Independent Bank Group, Inc. | 4,572 | 260,604 | ||||||
International Bancshares Corp. | 19,050 | 790,003 | ||||||
Investors Bancorp, Inc. | 9,906 | 116,396 | ||||||
JPMorgan Chase & Co. | 156,210 | 18,128,171 | ||||||
KeyCorp | 60,452 | 1,060,933 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Lakeland Bancorp, Inc. | 12,446 | $ | 206,106 | |||||
Lakeland Financial Corp.(a) | 4,318 | 206,185 | ||||||
LegacyTexas Financial Group, Inc. | 10,668 | 427,573 | ||||||
Live Oak Bancshares, Inc.(a) | 7,112 | 124,247 | ||||||
M&T Bank Corp. | 5,842 | 993,549 | ||||||
Metropolitan Bank Holding Corp.* | 2,540 | 101,371 | ||||||
Midland States Bancorp, Inc.(a) | 3,556 | 95,372 | ||||||
NBT Bancorp, Inc.(a) | 6,096 | 231,770 | ||||||
OFG Bancorp | 30,988 | 625,338 | ||||||
Old National Bancorp | 51,054 | 872,002 | ||||||
Opus Bank | 3,810 | 83,325 | ||||||
Pacific Premier Bancorp, Inc.(a) | 18,796 | 546,400 | ||||||
PacWest Bancorp(a) | 14,478 | 572,605 | ||||||
Park National Corp.(a) | 1,778 | 173,675 | ||||||
Peoples Bancorp, Inc. | 1,270 | 41,504 | ||||||
People’s United Financial, Inc.(a) | 28,702 | 496,258 | ||||||
Pinnacle Financial Partners, Inc. | 9,906 | 575,241 | ||||||
PNC Financial Services Group, Inc. (The) | 19,812 | 2,712,857 | ||||||
Popular, Inc. | 18,288 | 1,055,400 | ||||||
Preferred Bank | 1,524 | 74,966 | ||||||
Prosperity Bancshares, Inc.(a) | 9,398 | 692,069 | ||||||
Regions Financial Corp. | 38,354 | 595,638 | ||||||
Renasant Corp. | 3,556 | 128,941 | ||||||
S&T Bancorp, Inc.(a) | 6,350 | 254,508 | ||||||
Sandy Spring Bancorp, Inc. | 4,572 | 159,517 | ||||||
ServisFirst Bancshares, Inc. | 2,794 | 94,828 | ||||||
Signature Bank | 3,556 | 469,641 | ||||||
Simmons First National Corp., Class A | 32,512 | 825,480 | ||||||
South State Corp.(a) | 4,064 | 307,482 | ||||||
Southside Bancshares, Inc.(a) | 3,048 | 107,076 | ||||||
Sterling Bancorp | 84,074 | 1,800,865 | ||||||
Stock Yards Bancorp, Inc. | 4,572 | 157,048 | ||||||
SunTrust Banks, Inc. | 26,162 | 1,713,088 | ||||||
SVB Financial Group* | 1,778 | 447,558 |
See Accompanying Notes to the Financial Statements.
58 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Synovus Financial Corp. | 26,927 | $ | 992,529 | |||||
TCF Financial Corp. | 53,848 | 1,191,656 | ||||||
Texas Capital Bancshares, Inc.* | 19,812 | 1,282,431 | ||||||
Tompkins Financial Corp. | 2,286 | 184,412 | ||||||
Towne Bank | 5,334 | 139,111 | ||||||
TriCo Bancshares | 1,778 | 70,960 | ||||||
Trustmark Corp.(a) | 19,050 | 685,038 | ||||||
UMB Financial Corp.(a) | 2,286 | 159,700 | ||||||
Umpqua Holdings Corp. | 81,026 | 1,406,611 | ||||||
Union Bankshares Corp.(a) | 7,620 | 278,130 | ||||||
United Bankshares, Inc.(a) | 35,052 | 1,375,440 | ||||||
United Community Banks, Inc. | 5,334 | 149,779 | ||||||
Univest Financial Corp. | 8,890 | 224,206 | ||||||
US Bancorp | 62,992 | 3,358,733 | ||||||
Valley National Bancorp(a) | 113,792 | 1,192,540 | ||||||
Veritex Holdings, Inc. | 7,423 | 196,784 | ||||||
Washington Trust Bancorp, Inc.(a) | 2,794 | 144,757 | ||||||
Webster Financial Corp. | 5,842 | 310,385 | ||||||
Wells Fargo & Co. | 184,404 | 8,926,998 | ||||||
WesBanco, Inc. | 14,478 | 583,753 | ||||||
Westamerica Bancorp(a) | 254 | 16,312 | ||||||
Western Alliance Bancorp* | 5,842 | 279,131 | ||||||
Wintrust Financial Corp. | 3,810 | 290,322 | ||||||
Zions Bancorp NA | 13,208 | 651,551 | ||||||
114,289,754 | ||||||||
Beverages – 1.2% | ||||||||
Boston Beer Co., Inc. (The), Class A* (a) | 508 | 157,485 | ||||||
Brown-Forman Corp., Class B(a) | 10,160 | 541,426 | ||||||
Coca-Cola Co. (The) | 141,224 | 6,928,450 | ||||||
Coca-Cola Consolidated, Inc. | 762 | 247,673 | ||||||
Constellation Brands, Inc., Class A | 6,858 | 1,451,633 | ||||||
Keurig Dr Pepper, Inc.(a) | 7,874 | 228,897 | ||||||
Molson Coors Brewing Co., Class B | 2,032 | 130,434 |
Investments | Shares | Value | ||||||
Beverages – (continued) | ||||||||
Monster Beverage Corp.* | 16,002 | $ | 953,719 | |||||
National Beverage Corp.(a) | 762 | 42,672 | ||||||
PepsiCo, Inc. | 54,102 | 6,927,761 | ||||||
17,610,150 | ||||||||
Biotechnology – 2.6% | ||||||||
AbbVie, Inc. | 71,628 | 5,686,547 | ||||||
Abeona Therapeutics, Inc.* | 6,858 | 52,807 | ||||||
ACADIA Pharmaceuticals, Inc.* (a) | 9,144 | 219,913 | ||||||
Acceleron Pharma, Inc.* | 2,794 | 113,800 | ||||||
Adamas Pharmaceuticals, Inc.* (a) | 6,858 | 43,343 | ||||||
Agios Pharmaceuticals, Inc.* (a) | 4,064 | 227,259 | ||||||
Aimmune Therapeutics, Inc.* (a) | 4,064 | 81,849 | ||||||
Akebia Therapeutics, Inc.* (a) | 32,004 | 193,304 | ||||||
Albireo Pharma, Inc.* | 2,032 | 69,942 | ||||||
Alexion Pharmaceuticals, Inc.* | 9,144 | 1,244,773 | ||||||
Alkermes plc* | 7,874 | 238,740 | ||||||
Alnylam Pharmaceuticals, Inc.* (a) | 4,064 | 363,078 | ||||||
AMAG Pharmaceuticals, Inc.* | 9,144 | 102,047 | ||||||
Amgen, Inc. | 33,274 | 5,966,694 | ||||||
Amicus Therapeutics, Inc.* (a) | 14,224 | 189,748 | ||||||
AnaptysBio, Inc.* (a) | 2,032 | 147,767 | ||||||
Anika Therapeutics, Inc.* (a) | 1,270 | 40,450 | ||||||
Arena Pharmaceuticals, Inc.* (a) | 2,540 | 116,205 | ||||||
Array BioPharma, Inc.* | 14,224 | 321,605 | ||||||
Assembly Biosciences, Inc.* | 3,048 | 48,098 | ||||||
Atara Biotherapeutics, Inc.* | 8,382 | 281,635 | ||||||
Audentes Therapeutics, Inc.* | 3,048 | 115,184 | ||||||
Biogen, Inc.* | 7,366 | 1,688,582 | ||||||
BioMarin Pharmaceutical, Inc.* | 6,604 | 564,840 | ||||||
Bluebird Bio, Inc.* (a) | 2,794 | 396,273 | ||||||
Blueprint Medicines Corp.* | 3,556 | 268,869 | ||||||
Celgene Corp.* | 36,576 | 3,462,284 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 59 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
Clovis Oncology, Inc.* (a) | 18,796 | $ | 343,403 | |||||
Coherus Biosciences, Inc.* (a) | 10,414 | 165,791 | ||||||
CRISPR Therapeutics AG* (a) | 1,524 | 61,250 | ||||||
Curis, Inc.* | 1 | 2 | ||||||
CytomX Therapeutics, Inc.* | 3,048 | 28,987 | ||||||
Dynavax Technologies Corp.* (a) | 7,366 | 48,984 | ||||||
Editas Medicine, Inc.* (a) | 3,810 | 94,298 | ||||||
Emergent BioSolutions, Inc.* | 2,540 | 131,267 | ||||||
Epizyme, Inc.* | 11,176 | 138,694 | ||||||
Esperion Therapeutics, Inc.* | 5,842 | 251,790 | ||||||
Exact Sciences Corp.* | 4,318 | 426,143 | ||||||
Exelixis, Inc.* (a) | 21,590 | 424,459 | ||||||
FibroGen, Inc.* | 5,588 | 261,127 | ||||||
Five Prime Therapeutics, Inc.* | 7,620 | 84,430 | ||||||
Flexion Therapeutics, Inc.* | 13,970 | 148,082 | ||||||
Geron Corp.* (a) | 254 | 462 | ||||||
Gilead Sciences, Inc. | 62,230 | 4,047,439 | ||||||
Global Blood Therapeutics, Inc.* (a) | 4,318 | 239,217 | ||||||
Halozyme Therapeutics, Inc.* (a) | 10,922 | 176,172 | ||||||
Heron Therapeutics, Inc.* | 3,302 | 71,587 | ||||||
ImmunoGen, Inc.* | 17,780 | 42,494 | ||||||
Immunomedics, Inc.* (a) | 11,430 | 183,109 | ||||||
Incyte Corp.* | 7,366 | 565,709 | ||||||
Insmed, Inc.* (a) | 9,144 | 278,343 | ||||||
Insys Therapeutics, Inc.* (a) | 8,890 | 38,227 | ||||||
Intellia Therapeutics, Inc.* (a) | 4,064 | 62,504 | ||||||
Intercept Pharmaceuticals, Inc.* (a) | 762 | 65,669 | ||||||
Intrexon Corp.* (a) | 11,176 | 48,392 | ||||||
Ionis Pharmaceuticals, Inc.* | 5,334 | 396,476 | ||||||
Iovance Biotherapeutics, Inc.* (a) | 18,542 | 211,379 | ||||||
Ironwood Pharmaceuticals, Inc.* (a) | 12,192 | 144,963 | ||||||
La Jolla Pharmaceutical Co.* | 2,286 | 18,402 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
Lexicon Pharmaceuticals, Inc.* (a) | 6,858 | $ | 39,776 | |||||
Ligand Pharmaceuticals, Inc.* (a) | 2,032 | 255,727 | ||||||
MacroGenics, Inc.* | 1,778 | 29,817 | ||||||
Madrigal Pharmaceuticals, Inc.* (a) | 1,016 | 107,777 | ||||||
Minerva Neurosciences, Inc.* | 17,018 | 125,423 | ||||||
Momenta Pharmaceuticals, Inc.* | 8,128 | 113,711 | ||||||
Myriad Genetics, Inc.* (a) | 5,080 | 159,918 | ||||||
Neurocrine Biosciences, Inc.* | 4,826 | 348,630 | ||||||
Novavax, Inc.* (a) | 44,958 | 23,886 | ||||||
PDL BioPharma, Inc.* (a) | 74,168 | 242,529 | ||||||
Portola Pharmaceuticals, Inc.* (a) | 7,366 | 260,020 | ||||||
Progenics Pharmaceuticals, Inc.* | 2,794 | 14,361 | ||||||
Puma Biotechnology, Inc.* (a) | 3,302 | 106,060 | ||||||
Radius Health, Inc.* | 6,096 | 134,234 | ||||||
Regeneron Pharmaceuticals, Inc.* | 1,524 | 522,945 | ||||||
REGENXBIO, Inc.* | 1,270 | 64,008 | ||||||
Repligen Corp.* (a) | 2,286 | 154,031 | ||||||
Retrophin, Inc.* | 3,302 | 63,002 | ||||||
Rigel Pharmaceuticals, Inc.* (a) | 254 | 566 | ||||||
Sage Therapeutics, Inc.* | 2,286 | 384,574 | ||||||
Sangamo Therapeutics, Inc.* (a) | 17,272 | 201,910 | ||||||
Sarepta Therapeutics, Inc.* (a) | 4,826 | 564,352 | ||||||
Savara, Inc.* (a) | 17,018 | 181,752 | ||||||
Seattle Genetics, Inc.* (a) | 3,048 | 206,593 | ||||||
Sorrento Therapeutics, Inc.* (a) | 41,402 | 151,117 | ||||||
Spark Therapeutics, Inc.* | 1,778 | 189,695 | ||||||
Spectrum Pharmaceuticals, Inc.* | 10,922 | 102,339 | ||||||
TG Therapeutics, Inc.* (a) | 2,794 | 22,212 |
See Accompanying Notes to the Financial Statements.
60 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
Ultragenyx Pharmaceutical, Inc.* (a) | 3,302 | $ | 217,932 | |||||
United Therapeutics Corp.* | 1,778 | 182,370 | ||||||
Vertex Pharmaceuticals, Inc.* | 9,144 | 1,545,153 | ||||||
Viking Therapeutics, Inc.* (a) | 6,096 | 47,732 | ||||||
Voyager Therapeutics, Inc.* | 4,318 | 91,110 | ||||||
ZIOPHARM Oncology, Inc.* (a) | 16,764 | 74,097 | ||||||
38,374,246 | ||||||||
Building Products – 0.6% | ||||||||
AAON, Inc.(a) | 5,080 | 255,067 | ||||||
American Woodmark Corp.* (a) | 7,620 | 685,267 | ||||||
AO Smith Corp.(a) | 6,604 | 347,172 | ||||||
Apogee Enterprises, Inc.(a) | 8,382 | 337,795 | ||||||
Armstrong World Industries, Inc. | 254 | 22,014 | ||||||
Builders FirstSource, Inc.* | 41,402 | 570,520 | ||||||
Fortune Brands Home & Security, Inc. | 9,652 | 509,433 | ||||||
Gibraltar Industries, Inc.* | 2,540 | 100,762 | ||||||
Griffon Corp.(a) | 14,986 | 294,025 | ||||||
Insteel Industries, Inc. | 762 | 15,956 | ||||||
Johnson Controls International plc | 43,688 | 1,638,300 | ||||||
Lennox International, Inc.(a) | 2,794 | 758,431 | ||||||
Masco Corp. | 15,240 | 595,274 | ||||||
Masonite International Corp.* | 8,636 | 444,668 | ||||||
NCI Building Systems, Inc.* | 20,066 | 114,777 | ||||||
Owens Corning | 3,556 | 182,316 | ||||||
Patrick Industries, Inc.* | 11,430 | 570,014 | ||||||
Quanex Building Products Corp.(a) | 12,446 | 208,097 | ||||||
Simpson Manufacturing Co., Inc. | 2,032 | 129,398 | ||||||
Trex Co., Inc.* | 6,096 | 422,270 | ||||||
Universal Forest Products, Inc. | 18,542 | 685,127 | ||||||
8,886,683 |
Investments | Shares | Value | ||||||
Capital Markets – 2.6% | ||||||||
Affiliated Managers Group, Inc. | 7,112 | $ | 788,863 | |||||
Ameriprise Financial, Inc. | 9,906 | 1,453,904 | ||||||
Artisan Partners Asset Management, Inc., Class A | 19,558 | 554,274 | ||||||
Bank of New York Mellon Corp. (The) | 47,244 | 2,346,137 | ||||||
BGC Partners, Inc., Class A | 108,712 | 587,045 | ||||||
BlackRock, Inc. | 5,334 | 2,588,270 | ||||||
Blucora, Inc.* | 17,018 | 595,630 | ||||||
BrightSphere Investment Group plc | 30,988 | 454,284 | ||||||
Charles Schwab Corp. (The) | 50,546 | 2,313,996 | ||||||
CME Group, Inc. | 12,446 | 2,226,589 | ||||||
Cohen & Steers, Inc. | 1,016 | 50,952 | ||||||
Cowen, Inc.* (a) | 14,478 | 242,507 | ||||||
E*TRADE Financial Corp. | 16,764 | 849,264 | ||||||
Eaton Vance Corp.(a) | 13,462 | 559,615 | ||||||
Evercore, Inc., Class A | 1,778 | 173,231 | ||||||
FactSet Research Systems, Inc. | 762 | 210,213 | ||||||
Federated Investors, Inc., Class B | 8,128 | 249,774 | ||||||
Franklin Resources, Inc.(a) | 19,050 | 658,940 | ||||||
Goldman Sachs Group, Inc. (The) | 12,446 | 2,562,880 | ||||||
Greenhill & Co., Inc.(a) | 4,572 | 94,686 | ||||||
Houlihan Lokey, Inc. | 2,540 | 125,273 | ||||||
Intercontinental Exchange, Inc. | 19,558 | 1,591,082 | ||||||
INTL. FCStone, Inc.* | 7,874 | 319,369 | ||||||
Invesco Ltd. | 36,576 | 803,575 | ||||||
Janus Henderson Group plc(a) | 6,350 | 159,195 | ||||||
Legg Mason, Inc. | 2,794 | 93,459 | ||||||
LPL Financial Holdings, Inc. | 11,176 | 828,030 | ||||||
MarketAxess Holdings, Inc.(a) | 2,286 | 636,262 | ||||||
Moelis & Co., Class A | 3,302 | 135,217 | ||||||
Moody’s Corp. | 6,858 | 1,348,420 | ||||||
Morgan Stanley | 62,484 | 3,014,853 | ||||||
Morningstar, Inc. | 254 | 36,436 | ||||||
MSCI, Inc. | 2,540 | 572,465 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 61 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Nasdaq, Inc. | 2,286 | $ | 210,769 | |||||
Northern Trust Corp.(b) | 6,350 | 625,792 | ||||||
Piper Jaffray Cos. | 6,096 | 491,338 | ||||||
Raymond James Financial, Inc. | 7,874 | 721,022 | ||||||
S&P Global, Inc. | 9,652 | 2,129,810 | ||||||
SEI Investments Co. | 8,890 | 484,061 | ||||||
State Street Corp. | 21,082 | 1,426,408 | ||||||
Stifel Financial Corp.(a) | 14,986 | 894,216 | ||||||
T. Rowe Price Group, Inc. | 8,382 | 901,065 | ||||||
TD Ameritrade Holding Corp. | 10,668 | 560,923 | ||||||
Virtu Financial, Inc., Class A(a) | 23,114 | 568,142 | ||||||
Virtus Investment Partners, Inc. | 3,556 | 436,001 | ||||||
Waddell & Reed Financial, Inc., Class A(a) | 15,494 | 290,203 | ||||||
WisdomTree Investments, Inc. | 15,494 | 111,557 | ||||||
39,075,997 | ||||||||
Chemicals – 1.9% | ||||||||
AdvanSix, Inc.* | 12,446 | 376,243 | ||||||
Air Products & Chemicals, Inc. | 6,604 | 1,359,037 | ||||||
Albemarle Corp.(a) | 4,064 | 305,044 | ||||||
American Vanguard Corp. | 254 | 3,998 | ||||||
Ashland Global Holdings, Inc. | 2,540 | 204,546 | ||||||
Axalta Coating Systems Ltd.* | 6,604 | 178,176 | ||||||
Balchem Corp. | 2,032 | 206,268 | ||||||
Cabot Corp. | 21,082 | 956,701 | ||||||
Celanese Corp. | 4,572 | 493,273 | ||||||
CF Industries Holdings, Inc. | 8,128 | 363,972 | ||||||
Chemours Co. (The) | 14,478 | 521,353 | ||||||
DowDuPont, Inc. | 91,440 | 3,515,868 | ||||||
Eastman Chemical Co. | 6,350 | 500,888 | ||||||
Ecolab, Inc. | 7,620 | 1,402,690 | ||||||
Element Solutions, Inc.* | 23,876 | 259,293 | ||||||
Ferro Corp.* (a) | 11,430 | 204,254 | ||||||
FMC Corp. | 9,144 | 722,925 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
FutureFuel Corp. | 254 | $ | 3,731 | |||||
Hawkins, Inc. | 254 | 9,375 | ||||||
HB Fuller Co. | 1,778 | 87,069 | ||||||
Huntsman Corp. | 23,876 | 531,002 | ||||||
Ingevity Corp.* | 2,032 | 233,700 | ||||||
Innophos Holdings, Inc. | 7,620 | 245,288 | ||||||
Innospec, Inc. | 3,556 | 301,620 | ||||||
International Flavors & Fragrances, Inc.(a) | 2,540 | 349,987 | ||||||
Intrepid Potash, Inc.* | 19,304 | 71,811 | ||||||
Kraton Corp.* | 14,732 | 483,504 | ||||||
Kronos Worldwide, Inc. | 10,668 | 145,085 | ||||||
Linde plc | 20,574 | 3,708,669 | ||||||
Livent Corp.* | 8,552 | 92,191 | ||||||
LyondellBasell Industries NV, Class A | 17,780 | 1,568,729 | ||||||
Minerals Technologies, Inc. | 12,954 | 813,123 | ||||||
Mosaic Co. (The) | 11,938 | 311,701 | ||||||
NewMarket Corp. | 254 | 106,573 | ||||||
Olin Corp. | 63,500 | 1,377,315 | ||||||
OMNOVA Solutions, Inc.* | 14,224 | 105,258 | ||||||
PolyOne Corp. | 6,096 | 168,493 | ||||||
PPG Industries, Inc. | 8,890 | 1,044,575 | ||||||
PQ Group Holdings, Inc.* | 9,906 | 156,614 | ||||||
Quaker Chemical Corp. | 2,286 | 511,653 | ||||||
Rayonier Advanced Materials, Inc.(a) | 26,670 | 395,783 | ||||||
RPM International, Inc. | 3,048 | 184,861 | ||||||
ScottsMiracle-Gro Co. (The)(a) | 2,540 | 215,951 | ||||||
Sensient Technologies Corp.(a) | 2,794 | 195,915 | ||||||
Sherwin-Williams Co. (The) | 3,048 | 1,386,322 | ||||||
Stepan Co. | 5,588 | 517,114 | ||||||
Tredegar Corp. | 6,858 | 123,581 | ||||||
Trinseo SA | 2,540 | 114,173 | ||||||
Tronox Holdings plc, Class A | 19,558 | 276,550 | ||||||
Valvoline, Inc. | 16,510 | 305,435 | ||||||
Westlake Chemical Corp. | 4,826 | 336,613 | ||||||
WR Grace & Co. | 1,016 | 76,789 | ||||||
28,130,682 |
See Accompanying Notes to the Financial Statements.
62 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Commercial Services & Supplies – 1.0% | ||||||||
ABM Industries, Inc.(a) | 21,336 | $ | 810,128 | |||||
ACCO Brands Corp. | 43,434 | 396,987 | ||||||
ADT, Inc. | 18,288 | 120,518 | ||||||
Brady Corp., Class A | 6,604 | 322,209 | ||||||
BrightView Holdings, Inc.* | 14,224 | 228,153 | ||||||
Brink’s Co. (The)(a) | 6,858 | 548,160 | ||||||
Cimpress NV* | 2,540 | 229,616 | ||||||
Cintas Corp. | 2,794 | 606,689 | ||||||
Clean Harbors, Inc.* | 1,524 | 115,824 | ||||||
Copart, Inc.* | 6,604 | 444,581 | ||||||
Covanta Holding Corp.(a) | 31,496 | 569,133 | ||||||
Deluxe Corp. | 17,526 | 783,763 | ||||||
Ennis, Inc. | 8,636 | 174,275 | ||||||
Healthcare Services Group, Inc.(a) | 6,096 | 206,350 | ||||||
Herman Miller, Inc. | 17,272 | 670,499 | ||||||
HNI Corp.(a) | 11,176 | 410,271 | ||||||
Interface, Inc. | 8,382 | 134,447 | ||||||
KAR Auction Services, Inc. | 7,874 | 444,724 | ||||||
Kimball International, Inc., Class B | 6,604 | 103,419 | ||||||
Knoll, Inc. | 10,160 | 221,894 | ||||||
Matthews International Corp., Class A | 12,446 | 498,587 | ||||||
McGrath RentCorp | 762 | 47,244 | ||||||
Mobile Mini, Inc. | 2,794 | 100,640 | ||||||
MSA Safety, Inc. | 1,778 | 195,420 | ||||||
Multi-Color Corp. | 6,604 | 329,540 | ||||||
Pitney Bowes, Inc.(a) | 71,374 | 507,469 | ||||||
Quad/Graphics, Inc. | 15,748 | 192,283 | ||||||
Republic Services, Inc. | 9,398 | 778,342 | ||||||
Rollins, Inc. | 5,334 | 206,266 | ||||||
RR Donnelley & Sons Co. | 25,908 | 119,695 | ||||||
SP Plus Corp.* | 2,540 | 87,681 | ||||||
Steelcase, Inc., Class A | 23,876 | 412,816 | ||||||
Stericycle, Inc.* (a) | 28,956 | 1,690,741 | ||||||
Team, Inc.* (a) | 9,906 | 167,411 | ||||||
Tetra Tech, Inc. | 8,128 | 526,044 | ||||||
UniFirst Corp. | 1,524 | 240,990 | ||||||
US Ecology, Inc. | 2,540 | 154,965 | ||||||
Viad Corp. | 1,524 | 93,436 | ||||||
VSE Corp. | 3,302 | 100,942 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – (continued) | ||||||||
Waste Management, Inc. | 12,192 | $ | 1,308,689 | |||||
15,300,841 | ||||||||
Communications Equipment – 1.2% | ||||||||
ADTRAN, Inc. | 16,002 | 274,274 | ||||||
Arista Networks, Inc.* | 1,524 | 475,930 | ||||||
CalAmp Corp.* | 1,270 | 18,555 | ||||||
Calix, Inc.* | 508 | 3,480 | ||||||
Ciena Corp.* | 29,210 | 1,120,496 | ||||||
Cisco Systems, Inc. | 165,862 | 9,279,979 | ||||||
CommScope Holding Co., Inc.* | 9,906 | 245,471 | ||||||
EchoStar Corp., Class A* | 5,080 | 202,438 | ||||||
Extreme Networks, Inc.* | 8,128 | 65,024 | ||||||
F5 Networks, Inc.* | 1,524 | 239,115 | ||||||
Finisar Corp.* | 37,846 | 912,467 | ||||||
Harmonic, Inc.* | 35,052 | 198,394 | ||||||
Infinera Corp.* (a) | 48,768 | 211,653 | ||||||
InterDigital, Inc. | 3,048 | 199,309 | ||||||
Juniper Networks, Inc. | 10,668 | 296,250 | ||||||
Lumentum Holdings, Inc.* (a) | 21,033 | 1,303,415 | ||||||
Motorola Solutions, Inc. | 3,556 | 515,300 | ||||||
NETGEAR, Inc.* (a) | 5,080 | 157,632 | ||||||
NetScout Systems, Inc.* (a) | 26,416 | 776,630 | ||||||
Plantronics, Inc. | 762 | 39,228 | ||||||
Ribbon Communications, Inc.* | 14,478 | 77,602 | ||||||
Ubiquiti Networks, Inc.(a) | 1,016 | 173,177 | ||||||
ViaSat, Inc.* (a) | 3,302 | 299,888 | ||||||
Viavi Solutions, Inc.* | 47,752 | 635,102 | ||||||
17,720,809 | ||||||||
Construction & Engineering – 0.3% | ||||||||
AECOM* (a) | 6,858 | 232,486 | ||||||
Argan, Inc. | 1,778 | 85,024 | ||||||
Comfort Systems USA, Inc. | 4,826 | 261,087 | ||||||
Dycom Industries, Inc.* | 2,286 | 113,363 | ||||||
EMCOR Group, Inc. | 3,810 | 320,573 | ||||||
Granite Construction, Inc.(a) | 3,810 | 171,031 | ||||||
HC2 Holdings, Inc.* (a) | 20,828 | 44,572 | ||||||
Jacobs Engineering Group, Inc. | 4,826 | 376,138 | ||||||
KBR, Inc. | 48,768 | 1,083,625 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 63 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
MasTec, Inc.* (a) | 21,336 | $ | 1,080,668 | |||||
MYR Group, Inc.* | 2,032 | 73,457 | ||||||
Primoris Services Corp. | 3,556 | 77,947 | ||||||
Quanta Services, Inc. | 6,858 | 278,435 | ||||||
Sterling Construction Co., Inc.* | 7,620 | 103,327 | ||||||
Tutor Perini Corp.* (a) | 19,050 | 380,428 | ||||||
Valmont Industries, Inc. | 1,778 | 239,746 | ||||||
WillScot Corp.* (a) | 13,716 | 184,755 | ||||||
5,106,662 | ||||||||
Construction Materials – 0.2% | ||||||||
Eagle Materials, Inc. | 5,080 | 461,823 | ||||||
Forterra, Inc.* (a) | 14,478 | 67,178 | ||||||
Martin Marietta Materials, Inc.(a) | 2,032 | 450,901 | ||||||
Summit Materials, Inc., Class A* (a) | 44,196 | 774,314 | ||||||
US Concrete, Inc.* (a) | 1,524 | 71,826 | ||||||
Vulcan Materials Co. | 5,334 | 672,670 | ||||||
2,498,712 | ||||||||
Consumer Finance – 0.8% | ||||||||
Ally Financial, Inc. | 21,844 | 648,985 | ||||||
American Express Co. | 25,146 | 2,947,866 | ||||||
Capital One Financial Corp. | 20,320 | 1,886,306 | ||||||
Credit Acceptance Corp.* | 1,778 | 882,279 | ||||||
Curo Group Holdings Corp.* | 4,826 | 64,282 | ||||||
Discover Financial Services | 17,018 | 1,386,797 | ||||||
Encore Capital Group, Inc.* (a) | 254 | 7,178 | ||||||
Enova International, Inc.* | 10,668 | 292,623 | ||||||
EZCORP, Inc., Class A* (a) | 11,430 | 124,244 | ||||||
FirstCash, Inc. | 6,096 | 595,457 | ||||||
Green Dot Corp., Class A* | 3,556 | 226,766 | ||||||
Navient Corp. | 3,810 | 51,473 | ||||||
Nelnet, Inc., Class A(a) | 8,128 | 471,830 | ||||||
OneMain Holdings, Inc. | 35,306 | 1,199,345 | ||||||
PRA Group, Inc.* (a) | 254 | 7,143 | ||||||
Regional Management Corp.* | 3,810 | 94,374 |
Investments | Shares | Value | ||||||
Consumer Finance – (continued) | ||||||||
Santander Consumer USA Holdings, Inc. | 12,192 | $ | 260,299 | |||||
SLM Corp. | 54,356 | 552,257 | ||||||
Synchrony Financial | 3,810 | 132,093 | ||||||
World Acceptance Corp.* | 1,270 | 165,087 | ||||||
11,996,684 | ||||||||
Containers & Packaging – 0.4% | ||||||||
AptarGroup, Inc. | 1,270 | 141,275 | ||||||
Avery Dennison Corp. | 2,286 | 252,946 | ||||||
Ball Corp. | 11,684 | 700,339 | ||||||
Bemis Co., Inc. | 4,318 | 247,940 | ||||||
Berry Global Group, Inc.* | 11,938 | 701,954 | ||||||
Crown Holdings, Inc.* | 1,778 | 103,355 | ||||||
Graphic Packaging Holding Co.(a) | 17,780 | 246,786 | ||||||
Greif, Inc., Class A | 11,684 | 461,752 | ||||||
International Paper Co. | 17,018 | 796,613 | ||||||
Myers Industries, Inc. | 508 | 9,088 | ||||||
Owens-Illinois, Inc. | 14,478 | 286,085 | ||||||
Packaging Corp. of America | 6,604 | 654,853 | ||||||
Sealed Air Corp. | 8,636 | 402,610 | ||||||
Silgan Holdings, Inc.(a) | 30,226 | 904,966 | ||||||
Sonoco Products Co.(a) | 2,286 | 144,155 | ||||||
Westrock Co. | 1,016 | 38,994 | ||||||
6,093,711 | ||||||||
Distributors – 0.1% | ||||||||
Core-Mark Holding Co., Inc. | 4,572 | 166,192 | ||||||
Genuine Parts Co. | 3,556 | 364,632 | ||||||
LKQ Corp.* | 28,448 | 856,285 | ||||||
Pool Corp.(a) | 3,302 | 606,710 | ||||||
1,993,819 | ||||||||
Diversified Consumer Services – 0.3% | ||||||||
Adtalem Global Education, Inc.* | 17,272 | 851,855 | ||||||
Bright Horizons Family Solutions, Inc.* | 3,810 | 488,251 | ||||||
Career Education Corp.* (a) | 19,050 | 345,757 | ||||||
Chegg, Inc.* (a) | 1,778 | 63,386 | ||||||
frontdoor, Inc.* | 2,794 | 98,461 | ||||||
Graham Holdings Co., Class B | 1,016 | 755,325 |
See Accompanying Notes to the Financial Statements.
64 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Consumer Services – (continued) | ||||||||
Grand Canyon Education, Inc.* | 5,080 | $ | 588,721 | |||||
H&R Block, Inc.(a) | 6,858 | 186,606 | ||||||
Houghton Mifflin Harcourt Co.* (a) | 33,274 | 237,244 | ||||||
Laureate Education, Inc., Class A* | 17,526 | 275,859 | ||||||
Service Corp. International | 12,192 | 507,309 | ||||||
Strategic Education, Inc.(a) | 3,810 | 546,164 | ||||||
Weight Watchers International, Inc.* | 10,160 | 207,467 | ||||||
5,152,405 | ||||||||
Diversified Financial Services – 1.4% | ||||||||
AXA Equitable Holdings, Inc. | 14,478 | 328,506 | ||||||
Berkshire Hathaway, Inc., Class B* | 87,884 | 19,045,342 | ||||||
Cannae Holdings, Inc.* | 17,526 | 449,892 | ||||||
Jefferies Financial Group, Inc. | 17,272 | 355,285 | ||||||
Voya Financial, Inc.(a) | 13,462 | 738,929 | ||||||
20,917,954 | ||||||||
Diversified Telecommunication Services – 1.6% | ||||||||
AT&T, Inc. | 319,278 | 9,884,847 | ||||||
ATN International, Inc. | 2,032 | 124,054 | ||||||
CenturyLink, Inc. | 5,334 | 60,914 | ||||||
Cogent Communications Holdings, Inc.(a) | 3,810 | 210,426 | ||||||
Frontier Communications Corp.* (a) | 72,136 | 205,588 | ||||||
Iridium Communications, Inc.* | 31,496 | 864,880 | ||||||
ORBCOMM, Inc.* | 3,048 | 22,067 | ||||||
Verizon Communications, Inc. | 204,724 | 11,708,166 | ||||||
Vonage Holdings Corp.* | 34,036 | 330,830 | ||||||
Zayo Group Holdings, Inc.* | 9,906 | 309,959 | ||||||
23,721,731 | ||||||||
Electric Utilities – 1.6% | ||||||||
ALLETE, Inc. | 7,112 | 579,273 | ||||||
Alliant Energy Corp. | 5,080 | 239,928 |
Investments | Shares | Value | ||||||
Electric Utilities – (continued) | ||||||||
American Electric Power Co., Inc. | 19,304 | $ | 1,651,457 | |||||
Duke Energy Corp. | 34,544 | 3,147,649 | ||||||
Edison International | 15,240 | 971,855 | ||||||
El Paso Electric Co. | 5,080 | 310,439 | ||||||
Entergy Corp. | 10,414 | 1,009,117 | ||||||
Evergy, Inc. | 15,036 | 869,382 | ||||||
Eversource Energy | 12,954 | 928,284 | ||||||
Exelon Corp. | 47,752 | 2,432,965 | ||||||
FirstEnergy Corp. | 23,876 | 1,003,508 | ||||||
Hawaiian Electric Industries, Inc. | 15,748 | 653,227 | ||||||
IDACORP, Inc. | 4,064 | 402,417 | ||||||
MGE Energy, Inc. | 2,794 | 189,405 | ||||||
NextEra Energy, Inc. | 16,002 | 3,111,429 | ||||||
OGE Energy Corp. | 3,048 | 129,052 | ||||||
Otter Tail Corp. | 1,778 | 91,211 | ||||||
Pinnacle West Capital Corp.(a) | 2,286 | 217,787 | ||||||
PNM Resources, Inc. | 10,160 | 471,830 | ||||||
Portland General Electric Co. | 11,938 | 624,477 | ||||||
PPL Corp. | 33,020 | 1,030,554 | ||||||
Southern Co. (The) | 42,672 | 2,271,004 | ||||||
Xcel Energy, Inc. | 26,416 | 1,492,504 | ||||||
23,828,754 | ||||||||
Electrical Equipment – 0.6% | ||||||||
Acuity Brands, Inc. | 1,524 | 223,007 | ||||||
AMETEK, Inc. | 4,318 | 380,718 | ||||||
Atkore International Group, Inc.* | 15,240 | 377,342 | ||||||
AZZ, Inc.(a) | 1,524 | 72,375 | ||||||
Eaton Corp. plc | 21,082 | 1,746,011 | ||||||
Emerson Electric Co. | 18,796 | 1,334,328 | ||||||
Encore Wire Corp.(a) | 1,524 | 90,358 | ||||||
EnerSys | 11,430 | 790,842 | ||||||
Generac Holdings, Inc.* | 11,176 | 614,568 | ||||||
Hubbell, Inc. | 2,286 | 291,694 | ||||||
nVent Electric plc | 12,750 | 356,362 | ||||||
Regal Beloit Corp. | 13,970 | 1,188,568 | ||||||
Rockwell Automation, Inc. | 4,064 | 734,405 | ||||||
Sensata Technologies Holding plc* (a) | 7,112 | 355,173 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 65 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – (continued) | ||||||||
Sunrun, Inc.* (a) | 22,098 | $ | 336,111 | |||||
Vivint Solar, Inc.* (a) | 1,016 | 5,497 | ||||||
8,897,359 | ||||||||
Electronic Equipment, Instruments & Components – 1.5% | ||||||||
Amphenol Corp., Class A | 9,398 | 935,665 | ||||||
Anixter International, Inc.* | 8,636 | 542,945 | ||||||
Arlo Technologies, Inc.* | 10,055 | 39,918 | ||||||
Arrow Electronics, Inc.* | 2,540 | 214,655 | ||||||
Avnet, Inc. | 2,540 | 123,469 | ||||||
AVX Corp.(a) | 8,890 | 144,996 | ||||||
Badger Meter, Inc. | 3,048 | 169,103 | ||||||
Belden, Inc. | 1,016 | 56,439 | ||||||
Benchmark Electronics, Inc. | 13,716 | 370,744 | ||||||
CDW Corp. | 3,556 | 375,514 | ||||||
Cognex Corp.(a) | 11,684 | 589,224 | ||||||
Coherent, Inc.* (a) | 2,286 | 338,351 | ||||||
Corning, Inc. | 50,038 | 1,593,710 | ||||||
CTS Corp. | 7,874 | 235,826 | ||||||
Dolby Laboratories, Inc., Class A | 1,016 | 65,725 | ||||||
ePlus, Inc.* | 4,064 | 383,195 | ||||||
Fabrinet* | 12,700 | 768,604 | ||||||
Fitbit, Inc., Class A* (a) | 14,732 | 77,785 | ||||||
Flex Ltd.* | 183,134 | 2,021,799 | ||||||
FLIR Systems, Inc. | 4,064 | 215,148 | ||||||
II-VI, Inc.* (a) | 4,572 | 182,148 | ||||||
Insight Enterprises, Inc.* | 13,462 | 761,680 | ||||||
IPG Photonics Corp.* | 3,302 | 576,958 | ||||||
Itron, Inc.* | 2,286 | 122,667 | ||||||
Jabil, Inc. | 43,688 | 1,319,815 | ||||||
KEMET Corp. | 19,050 | 340,424 | ||||||
Keysight Technologies, Inc.* | 1,778 | 154,739 | ||||||
Knowles Corp.* | 1,524 | 28,773 | ||||||
Littelfuse, Inc. | 1,778 | 357,467 | ||||||
Mesa Laboratories, Inc. | 254 | 60,119 | ||||||
Methode Electronics, Inc. | 12,446 | 367,281 | ||||||
National Instruments Corp. | 254 | 11,963 | ||||||
Novanta, Inc.* | 3,810 | 331,546 | ||||||
PC Connection, Inc. | 4,572 | 169,896 | ||||||
Plexus Corp.* | 6,350 | 382,143 | ||||||
Rogers Corp.* (a) | 1,524 | 255,301 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Sanmina Corp.* | 20,066 | $ | 680,639 | |||||
ScanSource, Inc.* | 4,064 | 153,010 | ||||||
SYNNEX Corp. | 13,158 | 1,419,485 | ||||||
TE Connectivity Ltd. | 17,272 | 1,652,067 | ||||||
Tech Data Corp.* | 12,192 | 1,299,789 | ||||||
Trimble, Inc.* | 8,128 | 331,785 | ||||||
TTM Technologies, Inc.* | 36,830 | 487,629 | ||||||
Vishay Intertechnology, Inc.(a) | 54,102 | 1,071,761 | ||||||
Zebra Technologies Corp., Class A* | 5,842 | 1,233,480 | ||||||
23,015,380 | ||||||||
Energy Equipment & Services – 0.8% | ||||||||
Apergy Corp.* | 3,825 | 151,814 | ||||||
Archrock, Inc.(a) | 32,258 | 326,128 | ||||||
Baker Hughes a GE Co. | 20,574 | 494,187 | ||||||
Bristow Group, Inc.* | 36,322 | 18,343 | ||||||
C&J Energy Services, Inc.* | 24,892 | 349,733 | ||||||
Core Laboratories NV(a) | 4,318 | 273,718 | ||||||
Covia Holdings Corp.* (a) | 22,098 | 106,291 | ||||||
Ensco Rowan plc, Class A | 54,973 | 767,975 | ||||||
Exterran Corp.* | 14,986 | 213,101 | ||||||
Forum Energy Technologies, Inc.* | 64,516 | 385,806 | ||||||
Halliburton Co. | 40,132 | 1,136,939 | ||||||
Helix Energy Solutions Group, Inc.* | 28,702 | 224,450 | ||||||
Helmerich & Payne, Inc. | 6,096 | 356,738 | ||||||
Keane Group, Inc.* | 18,796 | 197,170 | ||||||
KLX Energy Services Holdings, Inc.* | 5,865 | 164,513 | ||||||
Liberty Oilfield Services, Inc., Class A(a) | 13,716 | 204,505 | ||||||
Matrix Service Co.* | 10,668 | 209,199 | ||||||
Newpark Resources, Inc.* | 5,842 | 42,647 | ||||||
Oil States International, Inc.* (a) | 27,432 | 529,986 | ||||||
Patterson-UTI Energy, Inc. | 82,296 | 1,118,403 | ||||||
Pioneer Energy Services Corp.* (a) | 46,736 | 81,321 | ||||||
ProPetro Holding Corp.* (a) | 23,876 | 528,376 | ||||||
RPC, Inc.(a) | 2,540 | 26,137 |
See Accompanying Notes to the Financial Statements.
66 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Energy Equipment & Services – (continued) | ||||||||
Schlumberger Ltd. | 68,326 | $ | 2,916,154 | |||||
SEACOR Holdings, Inc.* | 2,794 | 124,445 | ||||||
SEACOR Marine Holdings, Inc.* | 3,556 | 48,290 | ||||||
Select Energy Services, Inc., Class A* (a) | 27,432 | 316,017 | ||||||
Solaris Oilfield Infrastructure, Inc., Class A(a) | 6,604 | 112,202 | ||||||
Tidewater, Inc.* (a) | 3,048 | 68,580 | ||||||
Unit Corp.* | 22,860 | 309,982 | ||||||
US Silica Holdings, Inc.(a) | 32,258 | 510,321 | ||||||
12,313,471 | ||||||||
Entertainment – 1.7% | ||||||||
Activision Blizzard, Inc. | 30,226 | 1,457,195 | ||||||
Cinemark Holdings, Inc.(a) | 24,384 | 1,025,347 | ||||||
Electronic Arts, Inc.* | 12,446 | 1,178,014 | ||||||
Glu Mobile, Inc.* | 41,148 | 450,159 | ||||||
IMAX Corp.* | 254 | 6,193 | ||||||
Liberty Media Corp-Liberty Braves, Class C* | 6,350 | 178,752 | ||||||
Lions Gate Entertainment Corp., Class A | 2,540 | 37,059 | ||||||
Lions Gate Entertainment Corp., Class B | 18,796 | 255,626 | ||||||
Live Nation Entertainment, Inc.* (a) | 11,684 | 763,433 | ||||||
Madison Square Garden Co. (The), Class A* | 254 | 79,360 | ||||||
Marcus Corp. (The) | 4,826 | 181,554 | ||||||
Netflix, Inc.* (a) | 16,510 | 6,117,615 | ||||||
Take-Two Interactive Software, Inc.* | 6,858 | 664,060 | ||||||
Viacom, Inc., Class A(a) | 8,382 | 290,436 | ||||||
Viacom, Inc., Class B | 12,192 | 352,471 | ||||||
Walt Disney Co. (The) | 87,128 | 11,933,922 | ||||||
World Wrestling Entertainment, Inc., Class A(a) | 4,064 | 340,766 | ||||||
Zynga, Inc., Class A* | 42,418 | 240,086 | ||||||
25,552,048 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – 4.1% | ||||||||
Acadia Realty Trust | 1,270 | $ | 35,865 | |||||
Agree Realty Corp. | 1,270 | 83,147 | ||||||
Alexander & Baldwin, Inc. | 15,748 | 371,968 | ||||||
Alexander’s, Inc. | 254 | 96,426 | ||||||
Alexandria Real Estate Equities, Inc. | 4,318 | 614,840 | ||||||
American Assets Trust, Inc. | 3,302 | 152,519 | ||||||
American Campus Communities, Inc. | 6,858 | 323,698 | ||||||
American Homes 4 Rent, Class A | 8,890 | 213,182 | ||||||
American Tower Corp. | 16,510 | 3,224,403 | ||||||
Apartment Investment & Management Co., Class A | 5,082 | 250,848 | ||||||
Apple Hospitality REIT, Inc. | 76,962 | 1,266,025 | ||||||
Ashford Hospitality Trust, Inc. | 60,960 | 335,890 | ||||||
AvalonBay Communities, Inc. | 5,588 | 1,122,797 | ||||||
Boston Properties, Inc. | 6,858 | 943,798 | ||||||
Braemar Hotels & Resorts, Inc. | 10,160 | 141,224 | ||||||
Brandywine Realty Trust | 10,922 | 168,090 | ||||||
Camden Property Trust | 2,286 | 230,086 | ||||||
CatchMark Timber Trust, Inc., Class A | 22,606 | 226,060 | ||||||
CBL & Associates Properties, Inc.(a) | 113,030 | 114,160 | ||||||
Cedar Realty Trust, Inc. | 72,644 | 223,017 | ||||||
Chatham Lodging Trust | 1,270 | 25,006 | ||||||
Chesapeake Lodging Trust | 6,858 | 195,453 | ||||||
Colony Capital, Inc. | 32,766 | 168,417 | ||||||
Columbia Property Trust, Inc. | 14,224 | 323,027 | ||||||
CoreCivic, Inc. | 5,842 | 121,572 | ||||||
CorEnergy Infrastructure Trust, Inc.(a) | 1,270 | 47,993 | ||||||
CoreSite Realty Corp. | 2,540 | 277,901 | ||||||
Cousins Properties, Inc. | 23,368 | 223,632 | ||||||
Crown Castle International Corp. | 16,002 | 2,012,732 | ||||||
CubeSmart | 14,732 | 470,098 | ||||||
CyrusOne, Inc. | 3,302 | 183,888 | ||||||
DiamondRock Hospitality Co. | 6,604 | 71,719 | ||||||
Digital Realty Trust, Inc. | 7,874 | 926,849 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 67 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Douglas Emmett, Inc. | 7,366 | $ | 303,406 | |||||
Duke Realty Corp. | 10,414 | 324,084 | ||||||
EastGroup Properties, Inc.(a) | 1,270 | 145,199 | ||||||
Empire State Realty Trust, Inc., Class A | 16,764 | 259,171 | ||||||
EPR Properties | 4,064 | 320,487 | ||||||
Equinix, Inc. | 3,302 | 1,501,419 | ||||||
Equity Commonwealth | 19,050 | 605,790 | ||||||
Equity LifeStyle Properties, Inc. | 1,778 | 207,493 | ||||||
Equity Residential | 11,938 | 912,302 | ||||||
Essex Property Trust, Inc. | 2,286 | 645,795 | ||||||
Extra Space Storage, Inc. | 5,842 | 605,757 | ||||||
Federal Realty Investment Trust | 2,794 | 373,977 | ||||||
First Industrial Realty Trust, Inc. | 8,890 | 313,550 | ||||||
Franklin Street Properties Corp. | 33,274 | 261,534 | ||||||
Gaming and Leisure Properties, Inc. | 4,572 | 184,617 | ||||||
GEO Group, Inc. (The) | 10,160 | 203,403 | ||||||
Getty Realty Corp. | 1,016 | 32,949 | ||||||
Global Net Lease, Inc. | 6,858 | 130,782 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 1,778 | 47,277 | ||||||
HCP, Inc. | 26,416 | 786,668 | ||||||
Healthcare Realty Trust, Inc. | 6,604 | 203,932 | ||||||
Healthcare Trust of America, Inc., Class A | 5,842 | 161,122 | ||||||
Hersha Hospitality Trust | 13,208 | 245,273 | ||||||
Highwoods Properties, Inc. | 10,160 | 452,933 | ||||||
Hospitality Properties Trust | 17,526 | 455,676 | ||||||
Host Hotels & Resorts, Inc. | 36,830 | 708,609 | ||||||
Hudson Pacific Properties, Inc. | 4,318 | 150,525 | ||||||
Industrial Logistics Properties Trust | 17,542 | 348,209 | ||||||
InfraREIT, Inc. | 6,858 | 144,361 | ||||||
Investors Real Estate Trust(a) | 1,524 | 91,867 | ||||||
Invitation Homes, Inc. | 20,828 | 517,784 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Iron Mountain, Inc. | 8,890 | $ | 288,747 | |||||
iStar, Inc.(a) | 2,286 | 19,820 | ||||||
JBG SMITH Properties | 6,350 | 270,193 | ||||||
Kilroy Realty Corp. | 4,572 | 351,633 | ||||||
Kimco Realty Corp. | 26,924 | 468,208 | ||||||
Kite Realty Group Trust(a) | 33,274 | 525,396 | ||||||
Lamar Advertising Co., Class A | 4,826 | 398,965 | ||||||
Lexington Realty Trust | 16,256 | 147,442 | ||||||
Liberty Property Trust | 1,778 | 88,260 | ||||||
Life Storage, Inc. | 5,334 | 508,277 | ||||||
LTC Properties, Inc.(a) | 3,556 | 160,233 | ||||||
Macerich Co. (The)(a) | 9,906 | 397,627 | ||||||
Mack-Cali Realty Corp. | 10,922 | 254,264 | ||||||
MedEquities Realty Trust, Inc. | 19,050 | 204,026 | ||||||
Medical Properties Trust, Inc. | 49,530 | 864,794 | ||||||
Mid-America Apartment Communities, Inc. | 4,064 | 444,642 | ||||||
Monmouth Real Estate Investment Corp. | 8,128 | 111,679 | ||||||
National Health Investors, Inc. | 3,048 | 229,911 | ||||||
National Retail Properties, Inc. | 3,556 | 187,117 | ||||||
NorthStar Realty Europe Corp. | 1,778 | 31,702 | ||||||
Office Properties Income Trust | 9,108 | 247,191 | ||||||
Omega Healthcare Investors, Inc. | 11,684 | 413,497 | ||||||
Outfront Media, Inc. | 13,970 | 332,905 | ||||||
Paramount Group, Inc. | 24,892 | 360,685 | ||||||
Park Hotels & Resorts, Inc. | 25,908 | 831,129 | ||||||
Pebblebrook Hotel Trust(a) | 24,290 | 790,882 | ||||||
Pennsylvania REIT(a) | 41,148 | 247,711 | ||||||
Physicians Realty Trust | 11,430 | 206,426 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 4,826 | 100,477 | ||||||
PotlatchDeltic Corp. | 8,890 | 343,687 | ||||||
Preferred Apartment Communities, Inc., Class A | 19,558 | 305,887 | ||||||
Prologis, Inc. | 26,416 | 2,025,315 | ||||||
PS Business Parks, Inc. | 1,016 | 156,078 | ||||||
Public Storage | 5,334 | 1,179,774 |
See Accompanying Notes to the Financial Statements.
68 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
QTS Realty Trust, Inc., Class A(a) | 4,064 | $ | 184,302 | |||||
Rayonier, Inc. | 5,080 | 161,493 | ||||||
Realty Income Corp. | 13,462 | 942,484 | ||||||
Regency Centers Corp. | 8,382 | 563,019 | ||||||
Retail Opportunity Investments Corp. | 6,096 | 106,985 | ||||||
Retail Properties of America, Inc., Class A | 21,336 | 262,219 | ||||||
Retail Value, Inc. | 8,415 | 281,903 | ||||||
RLJ Lodging Trust | 20,320 | 374,091 | ||||||
RPT Realty(a) | 5,080 | 61,620 | ||||||
Ryman Hospitality Properties, Inc. | 5,334 | 424,586 | ||||||
Sabra Health Care REIT, Inc. | 23,622 | 462,046 | ||||||
Saul Centers, Inc. | 1,778 | 94,856 | ||||||
SBA Communications Corp.* | 5,080 | 1,034,948 | ||||||
Senior Housing Properties Trust | 93,980 | 754,659 | ||||||
Seritage Growth Properties, Class A(a) | 2,540 | 113,259 | ||||||
Simon Property Group, Inc. | 13,208 | 2,294,230 | ||||||
SITE Centers Corp.(a) | 56,896 | 753,303 | ||||||
SL Green Realty Corp. | 5,080 | 448,767 | ||||||
Spirit Realty Capital, Inc. | 27,686 | 1,120,176 | ||||||
STAG Industrial, Inc. | 4,064 | 116,962 | ||||||
STORE Capital Corp. | 13,208 | 440,091 | ||||||
Summit Hotel Properties, Inc.(a) | 21,590 | 250,660 | ||||||
Sun Communities, Inc. | 4,572 | 562,722 | ||||||
Sunstone Hotel Investors, Inc. | 20,574 | 296,266 | ||||||
Tanger Factory Outlet Centers, Inc.(a) | 9,906 | 178,902 | ||||||
Taubman Centers, Inc. | 7,874 | 388,188 | ||||||
Terreno Realty Corp. | 254 | 11,341 | ||||||
Tier REIT, Inc. | 4,572 | 129,570 | ||||||
UDR, Inc. | 8,636 | 388,188 | ||||||
Universal Health Realty Income Trust | 2,286 | 185,212 | ||||||
Urban Edge Properties | 21,082 | 391,493 | ||||||
Urstadt Biddle Properties, Inc., Class A | 254 | 5,570 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Ventas, Inc. | 17,780 | $ | 1,086,536 | |||||
VEREIT, Inc. | 37,084 | 306,314 | ||||||
VICI Properties, Inc. | 18,288 | 416,966 | ||||||
Vornado Realty Trust | 10,414 | 720,024 | ||||||
Washington REIT | 6,350 | 179,324 | ||||||
Weingarten Realty Investors | 46,482 | 1,345,189 | ||||||
Welltower, Inc. | 19,050 | 1,419,797 | ||||||
Weyerhaeuser Co. | 37,084 | 993,851 | ||||||
WP Carey, Inc. | 2,540 | 201,473 | ||||||
Xenia Hotels & Resorts, Inc. | 23,622 | 511,416 | ||||||
61,291,862 | ||||||||
Food & Staples Retailing – 1.2% | ||||||||
Andersons, Inc. (The) | 1,778 | 58,141 | ||||||
BJ’s Wholesale Club Holdings, Inc.* | 21,082 | 597,675 | ||||||
Casey’s General Stores, Inc. | 7,620 | 1,008,507 | ||||||
Costco Wholesale Corp. | 14,986 | 3,679,512 | ||||||
Ingles Markets, Inc., Class A(a) | 1,778 | 48,806 | ||||||
Kroger Co. (The) | 53,086 | 1,368,557 | ||||||
Performance Food Group Co.* | 28,956 | 1,185,748 | ||||||
Rite Aid Corp.* (a) | 23,405 | 214,391 | ||||||
Smart & Final Stores, Inc.* | 1,270 | 8,293 | ||||||
SpartanNash Co. | 2,794 | 45,179 | ||||||
Sysco Corp. | 13,462 | 947,321 | ||||||
United Natural Foods, Inc.* (a) | 24,384 | 315,041 | ||||||
US Foods Holding Corp.* | 8,382 | 306,362 | ||||||
Walgreens Boots Alliance, Inc. | 39,624 | 2,122,658 | ||||||
Walmart, Inc. | 60,452 | 6,216,884 | ||||||
Weis Markets, Inc.(a) | 4,826 | 202,933 | ||||||
18,326,008 | ||||||||
Food Products – 1.0% | ||||||||
Archer-Daniels-Midland Co. | 12,954 | 577,748 | ||||||
B&G Foods, Inc.(a) | 8,128 | 211,328 | ||||||
Bunge Ltd. | 6,858 | 359,428 | ||||||
Calavo Growers, Inc.(a) | 1,524 | 146,014 | ||||||
Cal-Maine Foods, Inc. | 9,652 | 396,794 | ||||||
Campbell Soup Co. | 2,286 | 88,445 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 69 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Conagra Brands, Inc. | 10,160 | $ | 312,725 | |||||
Darling Ingredients, Inc.* | 37,338 | 814,342 | ||||||
Flowers Foods, Inc.(a) | 9,398 | 204,313 | ||||||
Fresh Del Monte Produce, Inc. | 8,128 | 239,857 | ||||||
Freshpet, Inc.* | 1,016 | 45,375 | ||||||
General Mills, Inc. | 11,430 | 588,302 | ||||||
Hain Celestial Group, Inc. (The)* (a) | 12,954 | 282,656 | ||||||
Hershey Co. (The) | 4,572 | 570,814 | ||||||
Hormel Foods Corp.(a) | 7,366 | 294,198 | ||||||
Hostess Brands, Inc.* | 36,830 | 493,522 | ||||||
Ingredion, Inc. | 1,270 | 120,332 | ||||||
J&J Snack Foods Corp. | 1,778 | 279,466 | ||||||
JM Smucker Co. (The) | 6,350 | 778,701 | ||||||
Kellogg Co. | 12,446 | 750,494 | ||||||
Kraft Heinz Co. (The) | 14,986 | 498,135 | ||||||
Lamb Weston Holdings, Inc. | 3,810 | 266,890 | ||||||
Lancaster Colony Corp. | 1,524 | 226,634 | ||||||
McCormick & Co., Inc.(Non-Voting) | 3,302 | 508,409 | ||||||
Mondelez International, Inc., Class A | 55,118 | 2,802,750 | ||||||
Pilgrim’s Pride Corp.* | 4,064 | 109,362 | ||||||
Post Holdings, Inc.* | 5,334 | 601,569 | ||||||
Sanderson Farms, Inc.(a) | 5,080 | 770,280 | ||||||
Seaboard Corp. | 24 | 107,894 | ||||||
Tootsie Roll Industries, Inc.(a) | 2,415 | 93,787 | ||||||
TreeHouse Foods, Inc.* (a) | 19,050 | 1,275,969 | ||||||
Tyson Foods, Inc., Class A | 8,382 | 628,734 | ||||||
15,445,267 | ||||||||
Gas Utilities – 0.2% | ||||||||
Atmos Energy Corp. | 1,778 | 181,960 | ||||||
Chesapeake Utilities Corp. | 3,556 | 329,428 | ||||||
National Fuel Gas Co. | 1,270 | 75,197 | ||||||
New Jersey Resources Corp.(a) | 9,652 | 483,372 | ||||||
Northwest Natural Holding Co.(a) | 254 | 16,990 | ||||||
ONE Gas, Inc.(a) | 4,826 | 427,198 | ||||||
South Jersey Industries, Inc. | 7,112 | 228,437 |
Investments | Shares | Value | ||||||
Gas Utilities – (continued) | ||||||||
Southwest Gas Holdings, Inc. | 3,810 | $ | 316,954 | |||||
Spire, Inc. | 11,938 | 1,005,060 | ||||||
UGI Corp. | 4,572 | 249,220 | ||||||
3,313,816 | ||||||||
Health Care Equipment & Supplies – 2.5% | ||||||||
Abbott Laboratories | 68,072 | 5,415,808 | ||||||
ABIOMED, Inc.* | 3,302 | 916,008 | ||||||
Align Technology, Inc.* | 4,318 | 1,401,968 | ||||||
AngioDynamics, Inc.* | 1,778 | 36,520 | ||||||
AtriCure, Inc.* (a) | 1,270 | 38,125 | ||||||
Avanos Medical, Inc.* | 10,160 | 426,212 | ||||||
Axogen, Inc.* (a) | 2,794 | 65,603 | ||||||
Baxter International, Inc. | 19,812 | 1,511,656 | ||||||
Becton Dickinson and Co. | 9,906 | 2,384,771 | ||||||
Boston Scientific Corp.* | 42,926 | 1,593,413 | ||||||
Cantel Medical Corp.(a) | 2,540 | 175,108 | ||||||
Cardiovascular Systems, Inc.* | 1,016 | 36,109 | ||||||
Cerus Corp.* | 3,302 | 20,241 | ||||||
CONMED Corp. | 6,096 | 487,863 | ||||||
Cooper Cos., Inc. (The) | 1,270 | 368,198 | ||||||
Danaher Corp. | 21,844 | 2,893,019 | ||||||
DENTSPLY SIRONA, Inc. | 11,430 | 584,417 | ||||||
DexCom, Inc.* | 4,572 | 553,532 | ||||||
Edwards Lifesciences Corp.* | 6,604 | 1,162,766 | ||||||
Glaukos Corp.* | 762 | 54,963 | ||||||
Globus Medical, Inc., Class A* | 6,604 | 297,774 | ||||||
Hill-Rom Holdings, Inc. | 5,080 | 515,214 | ||||||
Hologic, Inc.* | 7,366 | 341,635 | ||||||
ICU Medical, Inc.* | 1,270 | 288,925 | ||||||
IDEXX Laboratories, Inc.* | 2,540 | 589,280 | ||||||
Inogen, Inc.* (a) | 1,016 | 88,697 | ||||||
Insulet Corp.* (a) | 2,540 | 219,075 | ||||||
Integer Holdings Corp.* | 10,160 | 701,954 | ||||||
Integra LifeSciences Holdings Corp.* | 5,334 | 278,382 | ||||||
Intuitive Surgical, Inc.* | 3,810 | 1,945,500 | ||||||
Invacare Corp.(a) | 8,128 | 60,147 | ||||||
iRhythm Technologies, Inc.* (a) | 762 | 58,148 | ||||||
Lantheus Holdings, Inc.* | 6,350 | 153,416 |
See Accompanying Notes to the Financial Statements.
70 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
LivaNova plc* | 1,524 | $ | 104,988 | |||||
Masimo Corp.* | 5,588 | 727,278 | ||||||
Medtronic plc | 49,276 | 4,376,202 | ||||||
Merit Medical Systems, Inc.* | 5,334 | 299,664 | ||||||
Natus Medical, Inc.* | 3,302 | 88,362 | ||||||
Neogen Corp.* (a) | 4,390 | 266,297 | ||||||
Nevro Corp.* (a) | 2,540 | 156,743 | ||||||
Novocure Ltd.* | 3,302 | 145,519 | ||||||
NuVasive, Inc.* (a) | 3,302 | 200,101 | ||||||
OraSure Technologies, Inc.* | 1,016 | 9,611 | ||||||
Orthofix Medical, Inc.* | 5,588 | 306,167 | ||||||
Penumbra, Inc.* (a) | 1,270 | 170,815 | ||||||
Quidel Corp.* (a) | 1,270 | 81,204 | ||||||
ResMed, Inc. | 3,302 | 345,092 | ||||||
Stryker Corp. | 11,684 | 2,207,225 | ||||||
Surmodics, Inc.* | 508 | 22,068 | ||||||
Tandem Diabetes Care, Inc.* | 2,540 | 155,981 | ||||||
Teleflex, Inc. | 2,794 | 799,587 | ||||||
Varex Imaging Corp.* | 3,048 | 100,096 | ||||||
Varian Medical Systems, Inc.* | 1,778 | 242,110 | ||||||
ViewRay, Inc.* (a) | 6,604 | 45,964 | ||||||
West Pharmaceutical Services, Inc. | 5,588 | 691,739 | ||||||
Wright Medical Group NV* | 2,794 | 82,619 | ||||||
Zimmer Biomet Holdings, Inc. | 3,302 | 406,674 | ||||||
37,696,553 | ||||||||
Health Care Providers & Services – 2.3% | ||||||||
Acadia Healthcare Co., Inc.* | 6,096 | 195,194 | ||||||
Amedisys, Inc.* | 5,588 | 714,258 | ||||||
AmerisourceBergen Corp. | 3,302 | 246,858 | ||||||
AMN Healthcare Services, Inc.* | 15,240 | 793,394 | ||||||
Anthem, Inc. | 12,192 | 3,206,862 | ||||||
Apollo Medical Holdings, Inc.* | 2,794 | 54,064 | ||||||
BioScrip, Inc.* | 28,194 | 54,132 | ||||||
BioTelemetry, Inc.* | 254 | 13,818 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Brookdale Senior Living, Inc.* | 73,152 | $ | 452,079 | |||||
Capital Senior Living Corp.* (a) | 254 | 1,067 | ||||||
Cardinal Health, Inc. | 16,256 | 791,830 | ||||||
Centene Corp.* | 18,796 | 969,122 | ||||||
Chemed Corp. | 2,032 | 664,017 | ||||||
Cigna Corp. | 15,118 | 2,401,343 | ||||||
Community Health Systems, Inc.* (a) | 41,656 | 143,297 | ||||||
CorVel Corp.* | 762 | 54,712 | ||||||
Cross Country Healthcare, Inc.* | 4,826 | 34,023 | ||||||
CVS Health Corp. | 39,370 | 2,140,941 | ||||||
DaVita, Inc.* | 9,144 | 505,115 | ||||||
Encompass Health Corp. | 11,684 | 753,034 | ||||||
Ensign Group, Inc. (The) | 15,240 | 785,165 | ||||||
HCA Healthcare, Inc. | 13,462 | 1,712,770 | ||||||
HealthEquity, Inc.* (a) | 1,016 | 68,834 | ||||||
Henry Schein, Inc.* (a) | 3,302 | 211,526 | ||||||
Humana, Inc. | 4,064 | 1,037,986 | ||||||
Laboratory Corp. of America Holdings* | 2,286 | 365,577 | ||||||
LHC Group, Inc.* | 4,877 | 541,883 | ||||||
Magellan Health, Inc.* | 2,794 | 195,580 | ||||||
McKesson Corp. | 10,414 | 1,241,869 | ||||||
MEDNAX, Inc.* | 34,290 | 959,091 | ||||||
Molina Healthcare, Inc.* | 7,620 | 987,781 | ||||||
Owens & Minor, Inc.(a) | 31,242 | 106,535 | ||||||
Premier, Inc., Class A* | 508 | 16,881 | ||||||
Providence Service Corp. (The)* | 2,794 | 185,326 | ||||||
Quest Diagnostics, Inc. | 3,556 | 342,727 | ||||||
R1 RCM, Inc.* (a) | 12,192 | 127,650 | ||||||
Select Medical Holdings Corp.* | 37,338 | 536,547 | ||||||
Surgery Partners, Inc.* (a) | 10,160 | 110,033 | ||||||
Tenet Healthcare Corp.* | 30,988 | 678,637 | ||||||
Tivity Health, Inc.* | 4,026 | 87,042 | ||||||
UnitedHealth Group, Inc. | 33,782 | 7,873,571 | ||||||
Universal Health Services, Inc., Class B(a) | 6,604 | 837,849 | ||||||
US Physical Therapy, Inc.(a) | 1,524 | 177,531 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 71 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
WellCare Health Plans, Inc.* | 3,556 | $ | 918,693 | |||||
34,296,244 | ||||||||
Health Care Technology – 0.2% | ||||||||
Cerner Corp.* | 14,224 | 945,185 | ||||||
Computer Programs & Systems, Inc. | 254 | 7,719 | ||||||
HealthStream, Inc.* | 508 | 13,299 | ||||||
HMS Holdings Corp.* | 1,524 | 46,375 | ||||||
Inovalon Holdings, Inc., Class A* (a) | 3,556 | 48,113 | ||||||
Medidata Solutions, Inc.* (a) | 3,302 | 298,303 | ||||||
Omnicell, Inc.* | 4,064 | 326,583 | ||||||
Teladoc Health, Inc.* (a) | 4,318 | 245,608 | ||||||
Veeva Systems, Inc., Class A* | 2,540 | 355,270 | ||||||
Vocera Communications, Inc.* (a) | 4,826 | 153,708 | ||||||
2,440,163 | ||||||||
Hotels, Restaurants & Leisure – 2.1% | ||||||||
Aramark | 13,462 | 418,399 | ||||||
Biglari Holdings, Inc., Class B* | 508 | 70,780 | ||||||
BJ’s Restaurants, Inc.(a) | 2,286 | 114,094 | ||||||
Bloomin’ Brands, Inc. | 33,274 | 665,147 | ||||||
Boyd Gaming Corp. | 16,510 | 475,158 | ||||||
Brinker International, Inc. | 12,954 | 554,043 | ||||||
Caesars Entertainment Corp.* (a) | 38,608 | 361,371 | ||||||
Carnival Corp. | 21,082 | 1,156,559 | ||||||
Cheesecake Factory, Inc. (The)(a) | 2,540 | 126,035 | ||||||
Chipotle Mexican Grill, Inc.* | 762 | 524,287 | ||||||
Choice Hotels International, Inc.(a) | 2,286 | 189,829 | ||||||
Churchill Downs, Inc.(a) | 3,810 | 384,239 | ||||||
Cracker Barrel Old Country Store, Inc.(a) | 2,032 | 342,880 | ||||||
Darden Restaurants, Inc. | 4,572 | 537,667 | ||||||
Dave & Buster’s Entertainment, Inc.(a) | 1,270 | 72,187 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Del Taco Restaurants, Inc.* | 6,350 | $ | 63,818 | |||||
Denny’s Corp.* | 14,478 | 269,580 | ||||||
Dine Brands Global, Inc. | 5,334 | 472,912 | ||||||
Domino’s Pizza, Inc.(a) | 3,302 | 893,455 | ||||||
Drive Shack, Inc.* | 14,986 | 77,028 | ||||||
Dunkin’ Brands Group, Inc. | 2,286 | 170,604 | ||||||
Eldorado Resorts, Inc.* (a) | 3,302 | 163,020 | ||||||
Extended Stay America, Inc. | 10,160 | 181,966 | ||||||
Hilton Grand Vacations, Inc.* | 33,782 | 1,082,375 | ||||||
Hilton Worldwide Holdings, Inc. | 10,414 | 905,914 | ||||||
Hyatt Hotels Corp., Class A | 3,048 | 233,873 | ||||||
International Speedway Corp., Class A | 2,032 | 89,652 | ||||||
Jack in the Box, Inc. | 2,540 | 195,834 | ||||||
Las Vegas Sands Corp. | 18,796 | 1,260,272 | ||||||
Marriott International, Inc., Class A | 8,636 | 1,178,123 | ||||||
Marriott Vacations Worldwide Corp. | 3,302 | 348,790 | ||||||
McDonald’s Corp. | 28,448 | 5,620,471 | ||||||
MGM Resorts International | 24,384 | 649,346 | ||||||
Norwegian Cruise Line Holdings Ltd.* | 10,414 | 587,245 | ||||||
Papa John’s International, Inc.(a) | 2,540 | 129,946 | ||||||
Penn National Gaming, Inc.* (a) | 39,116 | 847,644 | ||||||
Planet Fitness, Inc., Class A* | 4,064 | 307,645 | ||||||
Red Robin Gourmet Burgers, Inc.* | 762 | 24,407 | ||||||
Royal Caribbean Cruises Ltd. | 6,858 | 829,407 | ||||||
Ruth’s Hospitality Group, Inc. | 3,556 | 92,385 | ||||||
Scientific Games Corp.* | 9,906 | 229,126 | ||||||
SeaWorld Entertainment, Inc.* | 21,844 | 581,487 | ||||||
Six Flags Entertainment Corp. | 2,794 | 148,333 | ||||||
Starbucks Corp. | 44,704 | 3,472,607 | ||||||
Texas Roadhouse, Inc. | 4,826 | 260,652 | ||||||
Vail Resorts, Inc. | 2,794 | 639,407 | ||||||
Wendy’s Co. (The) | 23,368 | 434,878 | ||||||
Wyndham Destinations, Inc. | 34,290 | 1,493,672 |
See Accompanying Notes to the Financial Statements.
72 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Wyndham Hotels & Resorts, Inc. | 1,020 | $ | 56,834 | |||||
Wynn Resorts Ltd. | 5,334 | 770,496 | ||||||
Yum! Brands, Inc. | 11,430 | 1,193,178 | ||||||
31,949,057 | ||||||||
Household Durables – 0.9% | ||||||||
Beazer Homes USA, Inc.* | 10,668 | 141,778 | ||||||
Cavco Industries, Inc.* | 762 | 95,075 | ||||||
Century Communities, Inc.* (a) | 17,526 | 445,686 | ||||||
DR Horton, Inc.(a) | 18,288 | 810,341 | ||||||
Ethan Allen Interiors, Inc.(a) | 9,144 | 202,082 | ||||||
Garmin Ltd. | 1,016 | 87,112 | ||||||
GoPro, Inc., Class A* | 14,224 | 84,064 | ||||||
Green Brick Partners, Inc.* | 10,668 | 95,372 | ||||||
Helen of Troy Ltd.* (a) | 6,604 | 950,976 | ||||||
Installed Building Products, Inc.* | 3,048 | 146,395 | ||||||
iRobot Corp.* (a) | 1,778 | 184,094 | ||||||
KB Home(a) | 45,212 | 1,171,443 | ||||||
La-Z-Boy, Inc.(a) | 3,556 | 116,637 | ||||||
Leggett & Platt, Inc.(a) | 8,382 | 329,916 | ||||||
Lennar Corp., Class A | 10,414 | 541,840 | ||||||
Lennar Corp., Class B | 435 | 18,148 | ||||||
LGI Homes, Inc.* (a) | 7,112 | 492,933 | ||||||
M/I Homes, Inc.* | 14,224 | 400,690 | ||||||
MDC Holdings, Inc.(a) | 10,921 | 333,746 | ||||||
Meritage Homes Corp.* (a) | 14,986 | 766,534 | ||||||
Mohawk Industries, Inc.* | 4,064 | 553,720 | ||||||
Newell Brands, Inc.(a) | 24,384 | 350,642 | ||||||
NVR, Inc.* | 201 | 633,648 | ||||||
PulteGroup, Inc. | 19,304 | 607,304 | ||||||
Roku, Inc.* (a) | 4,826 | 306,885 | ||||||
Skyline Champion Corp. | 2,540 | 53,619 | ||||||
Taylor Morrison Home Corp., Class A* (a) | 44,958 | 870,387 | ||||||
Tempur Sealy International, Inc.* | 3,048 | 187,147 | ||||||
Toll Brothers, Inc. | 5,842 | 222,580 | ||||||
TopBuild Corp.* | 12,700 | 904,621 | ||||||
TRI Pointe Group, Inc.* (a) | 6,350 | 82,868 |
Investments | Shares | Value | ||||||
Household Durables – (continued) | ||||||||
Tupperware Brands Corp. | 2,032 | $ | 48,362 | |||||
Universal Electronics, Inc.* | 6,604 | 251,282 | ||||||
Whirlpool Corp. | 3,810 | 528,904 | ||||||
ZAGG, Inc.* | 13,716 | 113,020 | ||||||
13,129,851 | ||||||||
Household Products – 1.1% | ||||||||
Central Garden & Pet Co., Class A* | 17,018 | 416,601 | ||||||
Church & Dwight Co., Inc. | 7,620 | 571,119 | ||||||
Clorox Co. (The) | 3,810 | 608,571 | ||||||
Colgate-Palmolive Co. | 36,068 | 2,625,390 | ||||||
Kimberly-Clark Corp. | 13,208 | 1,695,643 | ||||||
Procter & Gamble Co. (The) | 94,996 | 10,115,174 | ||||||
Spectrum Brands Holdings, Inc.(a) | 1,270 | 78,194 | ||||||
WD-40 Co.(a) | 1,778 | 299,148 | ||||||
16,409,840 | ||||||||
Independent Power and Renewable Electricity Producers – 0.3% | ||||||||
AES Corp. | 22,860 | 391,363 | ||||||
Clearway Energy, Inc., Class A | 4,064 | 62,464 | ||||||
Clearway Energy, Inc., Class C | 30,988 | 491,779 | ||||||
NRG Energy, Inc. | 25,146 | 1,035,261 | ||||||
Ormat Technologies, Inc.(a) | 2,794 | 163,058 | ||||||
Pattern Energy Group, Inc., Class A | 29,718 | 687,080 | ||||||
Vistra Energy Corp. | 45,720 | 1,245,870 | ||||||
4,076,875 | ||||||||
Industrial Conglomerates – 0.9% | ||||||||
3M Co. | 22,860 | 4,332,199 | ||||||
Carlisle Cos., Inc. | 1,778 | 251,445 | ||||||
General Electric Co. | 324,612 | 3,301,304 | ||||||
Honeywell International, Inc. | 27,178 | 4,718,916 | ||||||
Roper Technologies, Inc. | 3,302 | 1,187,729 | ||||||
13,791,593 | ||||||||
Insurance – 2.7% | ||||||||
Aflac, Inc. | 28,702 | 1,446,007 | ||||||
Alleghany Corp.* | 508 | 333,695 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 73 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Allstate Corp. (The) | 15,240 | $ | 1,509,674 | |||||
Ambac Financial Group, Inc.* | 21,590 | 403,733 | ||||||
American Equity Investment Life Holding Co. | 32,258 | 948,708 | ||||||
American Financial Group, Inc. | 1,270 | 131,483 | ||||||
American International Group, Inc. | 25,400 | 1,208,278 | ||||||
American National Insurance Co. | 2,794 | 316,532 | ||||||
AMERISAFE, Inc. | 1,778 | 105,293 | ||||||
Aon plc | 7,874 | 1,418,422 | ||||||
Arch Capital Group Ltd.* | 18,796 | 634,929 | ||||||
Argo Group International Holdings Ltd. | 9,319 | 727,534 | ||||||
Arthur J Gallagher & Co. | 9,144 | 764,621 | ||||||
Assurant, Inc. | 2,286 | 217,170 | ||||||
Assured Guaranty Ltd. | 18,034 | 860,222 | ||||||
Axis Capital Holdings Ltd. | 3,302 | 187,719 | ||||||
Brown & Brown, Inc. | 8,128 | 258,064 | ||||||
Chubb Ltd. | 18,034 | 2,618,537 | ||||||
Cincinnati Financial Corp.(a) | 5,588 | 537,454 | ||||||
CNO Financial Group, Inc. | 13,462 | 222,796 | ||||||
Employers Holdings, Inc. | 9,398 | 403,362 | ||||||
Enstar Group Ltd.* | 2,286 | 405,216 | ||||||
Erie Indemnity Co., Class A | 254 | 48,087 | ||||||
Everest Re Group Ltd. | 1,524 | 358,902 | ||||||
FBL Financial Group, Inc., Class A(a) | 2,540 | 158,674 | ||||||
Fidelity National Financial, Inc. | 15,240 | 608,838 | ||||||
First American Financial Corp. | 8,128 | 463,784 | ||||||
Genworth Financial, Inc., Class A* | 36,576 | 138,623 | ||||||
Hanover Insurance Group, Inc. (The) | 4,826 | 582,064 | ||||||
Hartford Financial Services Group, Inc. (The) | 21,336 | 1,116,086 | ||||||
HCI Group, Inc.(a) | 1,270 | 54,127 | ||||||
Heritage Insurance Holdings, Inc. | 7,366 | 100,472 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Horace Mann Educators Corp. | 11,176 | $ | 431,170 | |||||
James River Group Holdings Ltd. | 5,842 | 246,649 | ||||||
Kemper Corp. | 6,604 | 593,568 | ||||||
Lincoln National Corp. | 12,700 | 847,344 | ||||||
Loews Corp. | 14,478 | 742,577 | ||||||
Markel Corp.* | 508 | 544,327 | ||||||
Marsh & McLennan Cos., Inc. | 18,542 | 1,748,325 | ||||||
MBIA, Inc.* | 26,924 | 260,355 | ||||||
Mercury General Corp. | 7,874 | 423,464 | ||||||
MetLife, Inc. | 29,972 | 1,382,608 | ||||||
National General Holdings Corp. | 15,748 | 388,188 | ||||||
National Western Life Group, Inc., Class A | 762 | 203,241 | ||||||
Navigators Group, Inc. (The) | 7,112 | 497,413 | ||||||
Old Republic International Corp. | 19,050 | 425,958 | ||||||
Primerica, Inc. | 5,842 | 761,154 | ||||||
Principal Financial Group, Inc. | 19,050 | 1,088,898 | ||||||
Progressive Corp. (The) | 21,590 | 1,687,259 | ||||||
Prudential Financial, Inc. | 14,224 | 1,503,619 | ||||||
Reinsurance Group of America, Inc. | 5,842 | 885,121 | ||||||
RenaissanceRe Holdings Ltd. | 2,286 | 355,153 | ||||||
RLI Corp.(a) | 3,302 | 268,552 | ||||||
Safety Insurance Group, Inc. | 2,540 | 236,017 | ||||||
Selective Insurance Group, Inc.(a) | 9,398 | 670,171 | ||||||
Stewart Information Services Corp. | 3,556 | 151,166 | ||||||
Torchmark Corp. | 4,318 | 378,516 | ||||||
Travelers Cos., Inc. (The) | 12,700 | 1,825,625 | ||||||
Trupanion, Inc.* (a) | 2,032 | 66,650 | ||||||
United Fire Group, Inc. | 6,096 | 265,847 | ||||||
Universal Insurance Holdings, Inc. | 8,128 | 242,133 | ||||||
Unum Group | 21,590 | 797,103 | ||||||
White Mountains Insurance Group Ltd. | 254 | 238,516 | ||||||
Willis Towers Watson plc | 4,318 | 795,980 |
See Accompanying Notes to the Financial Statements.
74 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
WR Berkley Corp. | 4,572 | $ | 280,264 | |||||
40,522,037 | ||||||||
Interactive Media & Services – 3.3% | ||||||||
Alphabet, Inc., Class A* | 11,176 | 13,399,577 | ||||||
Alphabet, Inc., Class C* | 11,938 | 14,188,074 | ||||||
Care.com, Inc.* | 2,286 | 38,291 | ||||||
Cargurus, Inc.* | 1,270 | 51,740 | ||||||
Cars.com, Inc.* | 22,860 | 475,717 | ||||||
Facebook, Inc., Class A* | 91,186 | 17,635,372 | ||||||
IAC/InterActiveCorp* | 2,286 | 513,984 | ||||||
Liberty TripAdvisor Holdings, Inc., Class A* | 24,892 | 366,908 | ||||||
Match Group, Inc. | 2,794 | 168,758 | ||||||
Snap, Inc., Class A* (a) | 50,546 | 563,082 | ||||||
TripAdvisor, Inc.* | 8,636 | 459,694 | ||||||
Twitter, Inc.* | 25,654 | 1,023,851 | ||||||
Yelp, Inc.* (a) | 4,572 | 183,154 | ||||||
Zillow Group, Inc., Class A* | 5,080 | 168,707 | ||||||
Zillow Group, Inc., Class C* (a) | 3,302 | 110,287 | ||||||
49,347,196 | ||||||||
Internet & Direct Marketing Retail – 2.5% | ||||||||
Amazon.com, Inc.* | 15,494 | 29,849,501 | ||||||
Booking Holdings, Inc.* | 1,778 | 3,298,172 | ||||||
eBay, Inc. | 44,958 | 1,742,122 | ||||||
Etsy, Inc.* (a) | 3,556 | 240,172 | ||||||
Expedia Group, Inc. | 3,048 | 395,752 | ||||||
GrubHub, Inc.* (a) | 3,556 | 237,505 | ||||||
Lands’ End, Inc.* | 2,794 | 48,923 | ||||||
Liberty Expedia Holdings, Inc., Class A* | 17,272 | 801,766 | ||||||
MercadoLibre, Inc.* | 1,778 | 860,801 | ||||||
Overstock.com, Inc.* (a) | 4,064 | 53,564 | ||||||
PetMed Express, Inc.(a) | 1,016 | 22,200 | ||||||
Quotient Technology, Inc.* | 2,794 | 25,956 | ||||||
Qurate Retail, Inc.* | 7,264 | 123,851 | ||||||
Shutterfly, Inc.* | 2,032 | 89,063 | ||||||
Stamps.com, Inc.* (a) | 1,270 | 108,966 | ||||||
Wayfair, Inc., Class A* (a) | 2,032 | 329,489 | ||||||
38,227,803 |
Investments | Shares | Value | ||||||
IT Services – 4.1% | ||||||||
Accenture plc, Class A | 23,876 | $ | 4,361,429 | |||||
Akamai Technologies, Inc.* | 5,080 | 406,705 | ||||||
Alliance Data Systems Corp. | 254 | 40,665 | ||||||
Automatic Data Processing, Inc. | 13,208 | 2,171,263 | ||||||
Black Knight, Inc.* | 2,630 | 148,385 | ||||||
Booz Allen Hamilton Holding Corp. | 10,922 | 647,565 | ||||||
Broadridge Financial Solutions, Inc. | 2,794 | 330,055 | ||||||
CACI International, Inc., Class A* | 5,842 | 1,138,839 | ||||||
Cardtronics plc, Class A* (a) | 16,510 | 590,398 | ||||||
Cass Information Systems, Inc. | 658 | 32,459 | ||||||
Cognizant Technology Solutions Corp., Class A | 22,352 | 1,630,802 | ||||||
Conduent, Inc.* | 3,302 | 42,365 | ||||||
CoreLogic, Inc.* | 5,334 | 216,614 | ||||||
CSG Systems International, Inc. | 4,826 | 215,481 | ||||||
DXC Technology Co. | 14,732 | 968,482 | ||||||
EPAM Systems, Inc.* | 2,032 | 364,459 | ||||||
Euronet Worldwide, Inc.* | 4,318 | 647,225 | ||||||
EVERTEC, Inc. | 16,002 | 501,023 | ||||||
Exela Technologies, Inc.* | 11,938 | 39,276 | ||||||
ExlService Holdings, Inc.* | 1,524 | 90,526 | ||||||
Fidelity National Information Services, Inc.(a) | 7,874 | 912,833 | ||||||
First Data Corp., Class A* | 31,496 | 814,487 | ||||||
Fiserv, Inc.* | 14,732 | 1,285,220 | ||||||
FleetCor Technologies, Inc.* | 2,540 | 662,813 | ||||||
Gartner, Inc.* | 2,794 | 444,162 | ||||||
Genpact Ltd. | 6,604 | 239,725 | ||||||
Global Payments, Inc. | 4,318 | 630,730 | ||||||
GoDaddy, Inc., Class A* | 4,826 | 393,319 | ||||||
GreenSky, Inc., Class A* | 5,842 | 93,355 | ||||||
GTT Communications, Inc.* (a) | 4,064 | 170,485 | ||||||
International Business Machines Corp. | 43,942 | 6,163,744 | ||||||
Jack Henry & Associates, Inc. | 2,032 | 302,890 | ||||||
Leidos Holdings, Inc. | 5,080 | 373,278 | ||||||
Limelight Networks, Inc.* | 19,558 | 58,087 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 75 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
LiveRamp Holdings, Inc.* | 3,048 | $ | 177,790 | |||||
ManTech International Corp., Class A | 5,588 | 346,400 | ||||||
Mastercard, Inc., Class A | 34,036 | 8,653,313 | ||||||
MAXIMUS, Inc. | 4,572 | 336,728 | ||||||
MoneyGram International, Inc.* | 16,510 | 54,648 | ||||||
NIC, Inc. | 2,794 | 48,224 | ||||||
Okta, Inc.* | 1,270 | 132,118 | ||||||
Paychex, Inc. | 8,382 | 706,686 | ||||||
PayPal Holdings, Inc.* | 44,196 | 4,983,983 | ||||||
Perficient, Inc.* (a) | 15,240 | 448,666 | ||||||
Perspecta, Inc. | 44,625 | 1,029,945 | ||||||
Presidio, Inc. | 12,954 | 194,569 | ||||||
Sabre Corp. | 6,096 | 126,553 | ||||||
Science Applications International Corp. | 3,048 | 228,448 | ||||||
Square, Inc., Class A* | 10,414 | 758,347 | ||||||
Switch, Inc., Class A (a) | 10,414 | 113,200 | ||||||
Sykes Enterprises, Inc.* | 8,382 | 232,600 | ||||||
Total System Services, Inc. | 5,080 | 519,379 | ||||||
Travelport Worldwide Ltd. | 46,228 | 724,855 | ||||||
TTEC Holdings, Inc. | 5,334 | 194,478 | ||||||
Twilio, Inc., Class A* (a) | 3,157 | 432,951 | ||||||
Unisys Corp.* (a) | 9,144 | 102,504 | ||||||
VeriSign, Inc.* | 3,556 | 702,132 | ||||||
Virtusa Corp.* | 9,144 | 507,949 | ||||||
Visa, Inc., Class A(a) | 66,548 | 10,942,488 | ||||||
Western Union Co. (The)(a) | 13,970 | 271,577 | ||||||
WEX, Inc.* | 2,032 | 427,330 | ||||||
Worldpay, Inc., Class A* | 9,652 | 1,131,311 | ||||||
61,658,316 | ||||||||
Leisure Products – 0.1% | ||||||||
Acushnet Holdings Corp. | 6,858 | 172,890 | ||||||
American Outdoor Brands Corp.* | 17,018 | 167,627 | ||||||
Brunswick Corp. | 4,318 | 221,125 | ||||||
Callaway Golf Co.(a) | 6,858 | 120,427 | ||||||
Hasbro, Inc. | 2,540 | 258,724 | ||||||
Polaris Industries, Inc. | 254 | 24,486 | ||||||
Sturm Ruger & Co., Inc. | 5,588 | 312,872 |
Investments | Shares | Value | ||||||
Leisure Products – (continued) | ||||||||
Vista Outdoor, Inc.* (a) | 28,956 | $ | 249,890 | |||||
1,528,041 | ||||||||
Life Sciences Tools & Services – 0.8% | ||||||||
Accelerate Diagnostics, Inc.* (a) | 7,620 | 148,590 | ||||||
Agilent Technologies, Inc. | 11,684 | 917,194 | ||||||
Bio-Rad Laboratories, Inc., Class A* | 254 | 76,436 | ||||||
Bio-Techne Corp. | 2,794 | 571,624 | ||||||
Bruker Corp. | 6,096 | 235,306 | ||||||
Cambrex Corp.* (a) | 3,302 | 142,052 | ||||||
Charles River Laboratories International, Inc.* | 3,810 | 535,191 | ||||||
Illumina, Inc.* | 5,334 | 1,664,208 | ||||||
IQVIA Holdings, Inc.* | 5,334 | 740,893 | ||||||
Medpace Holdings, Inc.* (a) | 762 | 42,802 | ||||||
Mettler-Toledo International, Inc.* | 1,016 | 757,184 | ||||||
NeoGenomics, Inc.* | 5,334 | 111,107 | ||||||
PerkinElmer, Inc. | 3,556 | 340,807 | ||||||
PRA Health Sciences, Inc.* | 1,778 | 172,146 | ||||||
Syneos Health, Inc.* | 6,096 | 286,085 | ||||||
Thermo Fisher Scientific, Inc. | 14,478 | 4,016,921 | ||||||
Waters Corp.* | 2,794 | 596,631 | ||||||
11,355,177 | ||||||||
Machinery – 2.5% | ||||||||
Actuant Corp., Class A(a) | 1,270 | 32,487 | ||||||
AGCO Corp. | 3,048 | 215,737 | ||||||
Alamo Group, Inc. | 1,016 | 105,298 | ||||||
Albany International Corp., Class A | 4,572 | 338,191 | ||||||
Allison Transmission Holdings, Inc. | 5,080 | 238,049 | ||||||
Altra Industrial Motion Corp. | 5,842 | 219,017 | ||||||
Barnes Group, Inc. | 8,128 | 452,079 | ||||||
Blue Bird Corp.* (a) | 3,302 | 57,158 | ||||||
Briggs & Stratton Corp. | 15,748 | 192,126 | ||||||
Caterpillar, Inc. | 28,194 | 3,930,807 | ||||||
Chart Industries, Inc.* | 8,890 | 784,720 | ||||||
CIRCOR International, Inc.* (a) | 9,144 | 308,336 | ||||||
Colfax Corp.* (a) | 35,560 | 1,072,845 |
See Accompanying Notes to the Financial Statements.
76 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Columbus McKinnon Corp.(a) | 1,016 | $ | 39,990 | |||||
Crane Co. | 6,350 | 540,067 | ||||||
Cummins, Inc. | 7,112 | 1,182,654 | ||||||
Deere & Co. | 11,684 | 1,935,221 | ||||||
Douglas Dynamics, Inc. | 2,540 | 95,910 | ||||||
Dover Corp. | 5,334 | 522,945 | ||||||
EnPro Industries, Inc. | 3,556 | 264,282 | ||||||
ESCO Technologies, Inc.(a) | 762 | 57,150 | ||||||
Federal Signal Corp. | 5,842 | 168,074 | ||||||
Flowserve Corp. | 2,032 | 99,629 | ||||||
Fortive Corp.(a) | 10,414 | 899,145 | ||||||
Franklin Electric Co., Inc. | 1,778 | 86,873 | ||||||
Gardner Denver Holdings, Inc.* | 9,906 | 334,327 | ||||||
Gates Industrial Corp. plc* | 3,810 | 61,265 | ||||||
Global Brass & Copper Holdings, Inc. | 4,826 | 209,400 | ||||||
Gorman-Rupp Co. (The) | 1,270 | 42,291 | ||||||
Graco, Inc. | 3,048 | 156,210 | ||||||
Greenbrier Cos., Inc. (The) | 10,668 | 379,034 | ||||||
Hillenbrand, Inc. | 12,192 | 524,500 | ||||||
IDEX Corp. | 1,524 | 238,750 | ||||||
Illinois Tool Works, Inc. | 11,684 | 1,818,381 | ||||||
Ingersoll-Rand plc | 6,350 | 778,573 | ||||||
ITT, Inc. | 5,842 | 353,733 | ||||||
John Bean Technologies Corp.(a) | 3,048 | 334,640 | ||||||
Kadant, Inc. | 3,048 | 298,978 | ||||||
Kennametal, Inc. | 28,194 | 1,147,496 | ||||||
Lincoln Electric Holdings, Inc. | 1,778 | 155,166 | ||||||
Lindsay Corp. | 254 | 21,590 | ||||||
Lydall, Inc.* | 10,160 | 250,038 | ||||||
Manitowoc Co., Inc. (The)* (a) | 8,382 | 149,702 | ||||||
Meritor, Inc.* | 29,210 | 708,635 | ||||||
Middleby Corp. (The)* (a) | 2,540 | 335,610 | ||||||
Milacron Holdings Corp.* | 4,318 | 63,086 | ||||||
Mueller Industries, Inc. | 1,016 | 29,637 | ||||||
Mueller Water Products, Inc., Class A | 10,160 | 109,017 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Navistar International Corp.* | 21,590 | $ | 737,083 | |||||
NN, Inc.(a) | 20,574 | 185,989 | ||||||
Nordson Corp.(a) | 1,270 | 185,356 | ||||||
Oshkosh Corp. | 24,384 | 2,013,874 | ||||||
PACCAR, Inc. | 12,954 | 928,413 | ||||||
Parker-Hannifin Corp. | 4,572 | 827,898 | ||||||
Park-Ohio Holdings Corp. | 2,540 | 93,040 | ||||||
Proto Labs, Inc.* | 508 | 55,773 | ||||||
RBC Bearings, Inc.* | 2,032 | 279,502 | ||||||
REV Group, Inc.(a) | 19,558 | 248,191 | ||||||
Rexnord Corp.* | 33,782 | 966,165 | ||||||
Snap-on, Inc. | 1,778 | 299,202 | ||||||
SPX Corp.* | 20,066 | 732,409 | ||||||
SPX FLOW, Inc.* | 10,922 | 392,537 | ||||||
Standex International Corp. | 1,524 | 100,691 | ||||||
Stanley Black & Decker, Inc. | 7,366 | 1,079,856 | ||||||
Sun Hydraulics Corp. | 1,016 | 53,177 | ||||||
Tennant Co.(a) | 1,270 | 84,303 | ||||||
Terex Corp. | 23,622 | 787,321 | ||||||
Timken Co. (The) | 21,336 | 1,023,061 | ||||||
Toro Co. (The) | 6,858 | 501,663 | ||||||
TriMas Corp.* | 11,430 | 353,530 | ||||||
Trinity Industries, Inc.(a) | 48,006 | 1,035,009 | ||||||
Wabash National Corp. | 13,208 | 199,177 | ||||||
WABCO Holdings, Inc.* | 1,270 | 168,199 | ||||||
Wabtec Corp.(a) | 4,537 | 336,056 | ||||||
Watts Water Technologies, Inc., Class A | 2,540 | 217,399 | ||||||
Welbilt, Inc.* | 10,160 | 170,993 | ||||||
Woodward, Inc.(a) | 4,318 | 470,230 | ||||||
Xylem, Inc. | 3,810 | 317,754 | ||||||
37,182,700 | ||||||||
Marine – 0.1% | ||||||||
Eagle Bulk Shipping, Inc.* | 23,876 | 130,124 | ||||||
Genco Shipping & Trading Ltd.* (a) | 16,256 | 164,186 | ||||||
Kirby Corp.* | 3,810 | 311,353 | ||||||
Matson, Inc. | 11,430 | 452,742 | ||||||
1,058,405 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 77 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – 1.9% | ||||||||
Altice USA, Inc., Class A | 10,414 | $ | 245,354 | |||||
AMC Networks, Inc., Class A* (a) | 23,622 | 1,379,761 | ||||||
CBS Corp.(Non-Voting), Class B | 8,636 | 442,768 | ||||||
Charter Communications, Inc., Class A* | 6,858 | 2,545,621 | ||||||
Comcast Corp., Class A | 194,564 | 8,469,371 | ||||||
comScore, Inc.* | 3,810 | 47,815 | ||||||
Discovery, Inc., Class A* | 254 | 7,849 | ||||||
Discovery, Inc., Class C* | 21,334 | 613,566 | ||||||
DISH Network Corp., Class A* | 15,748 | 553,070 | ||||||
Emerald Expositions Events, Inc. | 8,128 | 114,198 | ||||||
EW Scripps Co. (The), Class A | 4,572 | 104,196 | ||||||
Fox Corp., Class A* | 18,525 | 722,290 | ||||||
Fox Corp., Class B* | 4,631 | 178,293 | ||||||
Gannett Co., Inc. | 30,734 | 286,748 | ||||||
GCI Liberty, Inc., Class A* (a) | 9,906 | 590,596 | ||||||
Gray Television, Inc.* | 22,098 | 517,756 | ||||||
Interpublic Group of Cos., Inc. (The) | 14,478 | 332,994 | ||||||
John Wiley & Sons, Inc., Class A | 4,064 | 187,676 | ||||||
Liberty Broadband Corp., Class A* | 5,842 | 574,794 | ||||||
Liberty Broadband Corp., Class C* | 2,794 | 275,796 | ||||||
Liberty Latin America Ltd., Class A* | 69,596 | 1,456,644 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class A* | 6,350 | 253,619 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class C* | 6,096 | 244,815 | ||||||
Meredith Corp.(a) | 5,334 | 314,706 | ||||||
MSG Networks, Inc., Class A* (a) | 21,082 | 485,518 | ||||||
National CineMedia, Inc.(a) | 10,922 | 76,236 | ||||||
New York Times Co. (The), Class A(a) | 14,986 | 496,786 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
News Corp., Class A | 28,956 | $ | 359,633 | |||||
News Corp., Class B | 1,524 | 19,035 | ||||||
Nexstar Media Group, Inc., Class A(a) | 16,002 | 1,873,034 | ||||||
Omnicom Group, Inc.(a) | 9,398 | 752,122 | ||||||
Scholastic Corp. | 3,810 | 151,943 | ||||||
Sinclair Broadcast Group, Inc., Class A | 5,080 | 232,613 | ||||||
Sirius XM Holdings, Inc.(a) | 91,055 | 529,030 | ||||||
TEGNA, Inc. | 80,010 | 1,273,759 | ||||||
Tribune Media Co., Class A | 24,384 | 1,126,541 | ||||||
WideOpenWest, Inc.* (a) | 9,144 | 73,061 | ||||||
27,909,607 | ||||||||
Metals & Mining – 0.6% | ||||||||
AK Steel Holding Corp.* (a) | 119,888 | 290,129 | ||||||
Allegheny Technologies, Inc.* (a) | 21,844 | 544,352 | ||||||
Carpenter Technology Corp.(a) | 16,002 | 794,819 | ||||||
Century Aluminum Co.* (a) | 16,002 | 134,577 | ||||||
Cleveland-Cliffs, Inc.(a) | 96,012 | 959,160 | ||||||
Coeur Mining, Inc.* (a) | 23,114 | 83,441 | ||||||
Commercial Metals Co.(a) | 18,288 | 316,199 | ||||||
Compass Minerals International, Inc.(a) | 2,540 | 145,771 | ||||||
Freeport-McMoRan, Inc. | 80,518 | 991,177 | ||||||
Haynes International, Inc. | 1,270 | 41,034 | ||||||
Hecla Mining Co.(a) | 51,308 | 107,747 | ||||||
Kaiser Aluminum Corp. | 3,048 | 299,923 | ||||||
Materion Corp. | 1,524 | 88,438 | ||||||
McEwen Mining, Inc.(a) | 18,288 | 25,237 | ||||||
Newmont Goldcorp Corp. | 17,526 | 544,357 | ||||||
Nucor Corp. | 13,208 | 753,781 | ||||||
Reliance Steel & Aluminum Co. | 508 | 46,716 | ||||||
Royal Gold, Inc.(a) | 2,286 | 199,019 | ||||||
Schnitzer Steel Industries, Inc., Class A | 8,890 | 210,871 | ||||||
Southern Copper Corp. | 5,588 | 214,691 | ||||||
Steel Dynamics, Inc. | 11,684 | 370,149 | ||||||
SunCoke Energy, Inc.* | 29,718 | 255,872 | ||||||
TimkenSteel Corp.* (a) | 22,098 | 224,074 |
See Accompanying Notes to the Financial Statements.
78 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
United States Steel Corp. | 40,640 | $ | 633,984 | |||||
Worthington Industries, Inc. | 12,446 | 499,458 | ||||||
8,774,976 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.5% | ||||||||
AG Mortgage Investment Trust, Inc. | 12,954 | 221,643 | ||||||
Annaly Capital Management, Inc. | 24,384 | 246,035 | ||||||
Anworth Mortgage Asset Corp. | 5,334 | 22,349 | ||||||
Apollo Commercial Real Estate Finance, Inc.(a) | 20,320 | 380,797 | ||||||
Arlington Asset Investment Corp., Class A | 18,288 | 143,561 | ||||||
ARMOUR Residential REIT, Inc. | 12,700 | 242,316 | ||||||
Blackstone Mortgage Trust, Inc., Class A(a) | 39,116 | 1,392,138 | ||||||
Chimera Investment Corp. | 77,978 | 1,494,838 | ||||||
Colony Credit Real Estate, Inc. | 3,810 | 59,207 | ||||||
Exantas Capital Corp. | 7,366 | 80,658 | ||||||
Invesco Mortgage Capital, Inc. | 26,162 | 426,964 | ||||||
KKR Real Estate Finance Trust, Inc. | 3,302 | 66,601 | ||||||
Ladder Capital Corp. | 21,805 | 379,407 | ||||||
MFA Financial, Inc. | 57,150 | 429,196 | ||||||
New Residential Investment Corp. | 37,084 | 623,382 | ||||||
New York Mortgage Trust, Inc.(a) | 41,910 | 264,033 | ||||||
PennyMac Mortgage Investment Trust | 24,638 | 517,398 | ||||||
Redwood Trust, Inc. | 15,494 | 253,482 | ||||||
Starwood Property Trust, Inc. | 1,016 | 23,419 | ||||||
Two Harbors Investment Corp. | 36,830 | 510,464 | ||||||
Western Asset Mortgage Capital Corp. | 20,828 | 219,111 | ||||||
7,996,999 |
Investments | Shares | Value | ||||||
Multiline Retail – 0.5% | ||||||||
Big Lots, Inc. | 14,732 | $ | 547,441 | |||||
Dillard’s, Inc., Class A(a) | 4,572 | 312,953 | ||||||
Dollar General Corp. | 10,668 | 1,345,128 | ||||||
Dollar Tree, Inc.* | 16,510 | 1,837,233 | ||||||
Kohl’s Corp. | 6,350 | 451,485 | ||||||
Macy’s, Inc. | 8,890 | 209,271 | ||||||
Nordstrom, Inc.(a) | 5,588 | 229,220 | ||||||
Target Corp. | 27,940 | 2,163,115 | ||||||
7,095,846 | ||||||||
Multi-Utilities – 0.9% | ||||||||
Ameren Corp. | 9,906 | 720,860 | ||||||
Avista Corp. | 5,588 | 241,066 | ||||||
Black Hills Corp. | 20,066 | 1,460,002 | ||||||
CenterPoint Energy, Inc. | 20,066 | 622,046 | ||||||
CMS Energy Corp. | 7,366 | 409,181 | ||||||
Consolidated Edison, Inc. | 12,954 | 1,116,117 | ||||||
Dominion Energy, Inc. | 37,959 | 2,955,867 | ||||||
DTE Energy Co. | 8,128 | 1,021,771 | ||||||
MDU Resources Group, Inc. | 254 | 6,642 | ||||||
NiSource, Inc. | 6,604 | 183,459 | ||||||
NorthWestern Corp. | 12,446 | 869,353 | ||||||
Public Service Enterprise Group, Inc. | 22,606 | 1,348,448 | ||||||
Sempra Energy | 5,588 | 714,984 | ||||||
Unitil Corp. | 3,048 | 173,462 | ||||||
WEC Energy Group, Inc. | 13,462 | 1,055,825 | ||||||
12,899,083 | ||||||||
Oil, Gas & Consumable Fuels – 4.5% | ||||||||
Abraxas Petroleum Corp.* | 94,488 | 130,393 | ||||||
Anadarko Petroleum Corp. | 21,082 | 1,535,824 | ||||||
Antero Resources Corp.* | 28,702 | 208,089 | ||||||
Apache Corp.(a) | 24,892 | 819,196 | ||||||
Arch Coal, Inc., Class A(a) | 9,652 | 936,051 | ||||||
Cabot Oil & Gas Corp. | 16,764 | 434,020 | ||||||
California Resources Corp.* (a) | 13,462 | 283,779 | ||||||
Callon Petroleum Co.* (a) | 12,446 | 93,469 | ||||||
Carrizo Oil & Gas, Inc.* (a) | 36,068 | 462,392 | ||||||
Centennial Resource Development, Inc., Class A* (a) | 16,510 | 173,850 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 79 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Cheniere Energy, Inc.* | 7,112 | $ | 457,657 | |||||
Chesapeake Energy Corp.* (a) | 55,356 | 161,086 | ||||||
Chevron Corp. | 83,566 | 10,032,934 | ||||||
Cimarex Energy Co. | 8,655 | 594,252 | ||||||
Clean Energy Fuels Corp.* | 91,186 | 286,324 | ||||||
CNX Resources Corp.* | 74,422 | 666,821 | ||||||
Comstock Resources, Inc.* (a) | 9,906 | 60,427 | ||||||
Concho Resources, Inc.(a) | 8,636 | 996,422 | ||||||
ConocoPhillips | 54,102 | 3,414,918 | ||||||
CONSOL Energy, Inc.* | 7,514 | 254,725 | ||||||
Continental Resources, Inc.* | 4,826 | 221,948 | ||||||
CVR Energy, Inc. | 9,398 | 428,643 | ||||||
Delek US Holdings, Inc. | 24,130 | 894,258 | ||||||
Denbury Resources, Inc.* (a) | 173,482 | 386,865 | ||||||
Devon Energy Corp. | 29,210 | 938,809 | ||||||
Diamondback Energy, Inc. | 6,604 | 702,600 | ||||||
Dorian LPG Ltd.* | 15,318 | 122,850 | ||||||
EOG Resources, Inc. | 14,986 | 1,439,405 | ||||||
EP Energy Corp., Class A* (a) | 112,522 | 32,001 | ||||||
EQT Corp. | 15,494 | 316,852 | ||||||
Extraction Oil & Gas, Inc.* (a) | 33,528 | 157,582 | ||||||
Exxon Mobil Corp. | 189,230 | 15,191,384 | ||||||
Gran Tierra Energy, Inc.* | 1,270 | 3,035 | ||||||
Green Plains, Inc.(a) | 13,970 | 242,659 | ||||||
Halcon Resources Corp.* (a) | 96,266 | 125,146 | ||||||
Hess Corp. | 3,556 | 228,011 | ||||||
HollyFrontier Corp. | 18,034 | 860,763 | ||||||
Jagged Peak Energy, Inc.* (a) | 14,478 | 153,032 | ||||||
Kinder Morgan, Inc. | 99,314 | 1,973,369 | ||||||
Kosmos Energy Ltd.(a) | 40,889 | 273,547 | ||||||
Marathon Oil Corp. | 62,992 | 1,073,384 | ||||||
Marathon Petroleum Corp. | 39,878 | 2,427,374 | ||||||
Matador Resources Co.* (a) | 14,478 | 285,072 | ||||||
Montage Resources Corp.* | 6,772 | 75,305 | ||||||
Murphy Oil Corp.(a) | 8,382 | 228,326 | ||||||
Noble Energy, Inc.(a) | 32,004 | 866,028 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Northern Oil and Gas, Inc.* (a) | 71,628 | $ | 189,814 | |||||
Occidental Petroleum Corp. | 37,084 | 2,183,506 | ||||||
ONEOK, Inc. | 13,208 | 897,219 | ||||||
Overseas Shipholding Group, Inc., Class A* | 42,164 | 76,738 | ||||||
Parsley Energy, Inc., Class A* | 23,622 | 471,495 | ||||||
PBF Energy, Inc., Class A | 25,146 | 844,403 | ||||||
PDC Energy, Inc.* (a) | 9,144 | 397,673 | ||||||
Peabody Energy Corp. | 31,242 | 898,832 | ||||||
Penn Virginia Corp.* | 3,556 | 159,664 | ||||||
Phillips 66 | 21,844 | 2,059,234 | ||||||
Pioneer Natural Resources Co. | 7,366 | 1,226,144 | ||||||
Range Resources Corp. | 10,414 | 94,143 | ||||||
Renewable Energy Group, Inc.* (a) | 8,382 | 202,174 | ||||||
REX American Resources Corp.* | 1,524 | 128,793 | ||||||
Ring Energy, Inc.* (a) | 15,494 | 80,259 | ||||||
SemGroup Corp., Class A(a) | 29,972 | 391,434 | ||||||
SM Energy Co. | 44,450 | 708,089 | ||||||
Southwestern Energy Co.* (a) | 17,526 | 69,228 | ||||||
Talos Energy, Inc.* (a) | 15,240 | 452,628 | ||||||
Targa Resources Corp.(a) | 4,064 | 163,170 | ||||||
Tellurian, Inc.* (a) | 9,906 | 94,107 | ||||||
Valero Energy Corp. | 19,050 | 1,727,073 | ||||||
W&T Offshore, Inc.* (a) | 28,448 | 181,498 | ||||||
Whiting Petroleum Corp.* (a) | 33,782 | 925,289 | ||||||
Williams Cos., Inc. (The) | 53,594 | 1,518,318 | ||||||
WPX Energy, Inc.* | 40,894 | 568,018 | ||||||
68,359,820 | ||||||||
Paper & Forest Products – 0.2% | ||||||||
Boise Cascade Co. | 12,700 | 351,663 | ||||||
Clearwater Paper Corp.* | 4,826 | 97,340 | ||||||
Domtar Corp. | 18,796 | 919,124 | ||||||
Louisiana-Pacific Corp. | 43,942 | 1,100,747 | ||||||
Mercer International, Inc. | 15,748 | 222,992 | ||||||
Neenah, Inc. | 2,540 | 172,339 |
See Accompanying Notes to the Financial Statements.
80 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – (continued) | ||||||||
Resolute Forest Products, Inc. | 29,972 | $ | 237,079 | |||||
Schweitzer-Mauduit International, Inc. | 8,382 | 298,148 | ||||||
Verso Corp., Class A* (a) | 5,334 | 119,055 | ||||||
3,518,487 | ||||||||
Personal Products – 0.2% | ||||||||
Avon Products, Inc.* | 24,384 | 77,541 | ||||||
Coty, Inc., Class A(a) | 39,370 | 425,983 | ||||||
Edgewell Personal Care Co.* (a) | 1,524 | 62,835 | ||||||
elf Beauty, Inc.* (a) | 3,810 | 48,730 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 7,874 | 1,352,832 | ||||||
Herbalife Nutrition Ltd.* | 13,208 | �� | 698,043 | |||||
Inter Parfums, Inc. | 2,794 | 202,537 | ||||||
Medifast, Inc. | 1,524 | 223,556 | ||||||
Nu Skin Enterprises, Inc., Class A | 7,620 | 387,629 | ||||||
Revlon, Inc., Class A* (a) | 2,794 | 59,652 | ||||||
USANA Health Sciences, Inc.* | 1,778 | 148,392 | ||||||
3,687,730 | ||||||||
Pharmaceuticals – 3.1% | ||||||||
Aclaris Therapeutics, Inc.* | 10,668 | 67,208 | ||||||
Aerie Pharmaceuticals, Inc.* (a) | 4,318 | 164,732 | ||||||
Akorn, Inc.* | 13,970 | 37,719 | ||||||
Allergan plc | 10,160 | 1,493,520 | ||||||
ANI Pharmaceuticals, Inc.* (a) | 1,016 | 72,116 | ||||||
Assertio Therapeutics, Inc.* | 33,528 | 139,812 | ||||||
Bristol-Myers Squibb Co.(a) | 63,246 | 2,936,512 | ||||||
Catalent, Inc.* | 6,350 | 284,607 | ||||||
Collegium Pharmaceutical, Inc.* | 7,620 | 106,146 | ||||||
Corcept Therapeutics, Inc.* | 8,382 | 103,769 | ||||||
Elanco Animal Health, Inc.* | 6,312 | 198,828 | ||||||
Eli Lilly & Co. | 32,891 | 3,849,563 | ||||||
Horizon Pharma plc* | 41,910 | 1,069,962 | ||||||
Innoviva, Inc.* | 25,654 | 359,926 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Intersect ENT, Inc.* | 1,524 | $ | 49,515 | |||||
Intra-Cellular Therapies, Inc.* | 5,334 | 70,249 | ||||||
Jazz Pharmaceuticals plc* | 2,286 | 296,654 | ||||||
Johnson & Johnson | 101,600 | 14,345,920 | ||||||
Medicines Co. (The)* (a) | 508 | 16,230 | ||||||
Merck & Co., Inc. | 106,426 | 8,376,790 | ||||||
Mylan NV* | 29,210 | 788,378 | ||||||
MyoKardia, Inc.* (a) | 1,524 | 73,121 | ||||||
Nektar Therapeutics* (a) | 5,588 | 178,928 | ||||||
Odonate Therapeutics, Inc.* (a) | 6,604 | 129,835 | ||||||
Omeros Corp.* (a) | 1,270 | 23,927 | ||||||
Optinose, Inc.* (a) | 6,858 | 68,306 | ||||||
Pacira BioSciences, Inc.* | 1,270 | 50,571 | ||||||
Paratek Pharmaceuticals, Inc.* (a) | 9,652 | 53,182 | ||||||
Pfizer, Inc. | 232,664 | 9,448,485 | ||||||
Prestige Consumer Healthcare, Inc.* (a) | 3,048 | 89,672 | ||||||
Revance Therapeutics, Inc.* | 3,810 | 50,444 | ||||||
SIGA Technologies, Inc.* (a) | 6,604 | 34,605 | ||||||
Supernus Pharmaceuticals, Inc.* | 3,556 | 130,612 | ||||||
TherapeuticsMD, Inc.* (a) | 19,812 | 85,192 | ||||||
Theravance Biopharma, Inc.* (a) | 2,794 | 66,637 | ||||||
Zoetis, Inc. | 16,002 | 1,629,644 | ||||||
Zogenix, Inc.* (a) | 2,540 | 99,035 | ||||||
47,040,352 | ||||||||
Professional Services – 0.5% | ||||||||
ASGN, Inc.* | 8,636 | 544,413 | ||||||
CBIZ, Inc.* | 11,938 | 230,523 | ||||||
CoStar Group, Inc.* | 1,778 | 882,332 | ||||||
Equifax, Inc. | 4,064 | 511,861 | ||||||
Exponent, Inc. | 6,096 | 345,156 | ||||||
Forrester Research, Inc. | 508 | 25,837 | ||||||
FTI Consulting, Inc.* (a) | 8,636 | 733,887 | ||||||
GP Strategies Corp.* | 6,096 | 77,602 | ||||||
Heidrick & Struggles International, Inc. | 1,778 | 63,617 | ||||||
Huron Consulting Group, Inc.* | 4,826 | 233,241 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 81 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Professional Services – (continued) | ||||||||
ICF International, Inc. | 4,318 | $ | 336,243 | |||||
IHS Markit Ltd.* | 4,826 | 276,337 | ||||||
Insperity, Inc. | 5,080 | 607,365 | ||||||
Kelly Services, Inc., Class A | 3,302 | 73,503 | ||||||
Kforce, Inc. | 3,810 | 137,236 | ||||||
Korn Ferry | 13,208 | 621,040 | ||||||
ManpowerGroup, Inc. | 4,064 | 390,307 | ||||||
Mistras Group, Inc.* | 254 | 3,482 | ||||||
Navigant Consulting, Inc.(a) | 18,796 | 429,113 | ||||||
Resources Connection, Inc. | 3,556 | 57,109 | ||||||
Robert Half International, Inc. | 2,794 | 173,479 | ||||||
TransUnion | 2,794 | 194,602 | ||||||
TriNet Group, Inc.* | 2,540 | 158,344 | ||||||
TrueBlue, Inc.* | 13,970 | 337,515 | ||||||
Upwork, Inc.* | 2,794 | 55,852 | ||||||
Verisk Analytics, Inc.(a) | 3,810 | 537,743 | ||||||
WageWorks, Inc.* | 2,032 | 99,141 | ||||||
8,136,880 | ||||||||
Real Estate Management & Development – 0.3% | ||||||||
Altisource Portfolio Solutions SA* (a) | 2,794 | 66,134 | ||||||
CBRE Group, Inc., Class A* | 16,510 | 859,676 | ||||||
Cushman & Wakefield plc* | 54,102 | 1,062,563 | ||||||
eXp World Holdings, Inc.* (a) | 6,096 | 66,446 | ||||||
HFF, Inc., Class A | 3,556 | 169,230 | ||||||
Howard Hughes Corp. (The)* (a) | 3,048 | 338,328 | ||||||
Jones Lang LaSalle, Inc. | 2,032 | 314,086 | ||||||
Kennedy-Wilson Holdings, Inc. | 42,926 | 924,626 | ||||||
Newmark Group, Inc., Class A | 59,690 | 508,559 | ||||||
RE/MAX Holdings, Inc., Class A | 3,556 | 154,082 | ||||||
Realogy Holdings Corp. | 254 | 3,307 | ||||||
Redfin Corp.* (a) | 7,366 | 152,329 | ||||||
4,619,366 | ||||||||
Road & Rail – 1.0% | ||||||||
AMERCO | 508 | 189,570 |
Investments | Shares | Value | ||||||
Road & Rail – (continued) | ||||||||
ArcBest Corp. | 7,366 | $ | 225,105 | |||||
Avis Budget Group, Inc.* | 23,876 | 848,792 | ||||||
Covenant Transportation Group, Inc., Class A* | 3,556 | 69,449 | ||||||
CSX Corp. | 33,020 | 2,629,383 | ||||||
Daseke, Inc.* | 18,288 | 94,366 | ||||||
Genesee & Wyoming, Inc., Class A* | 1,778 | 157,620 | ||||||
Heartland Express, Inc.(a) | 3,556 | 69,982 | ||||||
JB Hunt Transport Services, Inc. | 1,270 | 119,989 | ||||||
Kansas City Southern | 1,524 | 187,665 | ||||||
Knight-Swift Transportation Holdings, Inc.(a) | 13,716 | 457,428 | ||||||
Landstar System, Inc. | 3,302 | 359,786 | ||||||
Marten Transport Ltd. | 8,636 | 170,820 | ||||||
Norfolk Southern Corp. | 10,922 | 2,228,306 | ||||||
Old Dominion Freight Line, Inc. | 4,064 | 606,674 | ||||||
Ryder System, Inc. | 21,082 | 1,328,166 | ||||||
Saia, Inc.* (a) | 7,112 | 457,942 | ||||||
Schneider National, Inc., Class B | 11,938 | 249,504 | ||||||
Union Pacific Corp. | 26,416 | 4,676,689 | ||||||
US Xpress Enterprises, Inc., Class A* | 8,636 | 58,207 | ||||||
Werner Enterprises, Inc.(a) | 1,270 | 42,545 | ||||||
15,227,988 | ||||||||
Semiconductors & Semiconductor Equipment – 3.6% | ||||||||
Advanced Energy Industries, Inc.* | 4,572 | 264,079 | ||||||
Advanced Micro Devices, Inc.* (a) | 60,706 | 1,677,307 | ||||||
Ambarella, Inc.* (a) | 508 | 25,461 | ||||||
Amkor Technology, Inc.* | 48,514 | 439,537 | ||||||
Analog Devices, Inc. | 11,684 | 1,358,148 | ||||||
Applied Materials, Inc. | 50,038 | 2,205,175 | ||||||
Axcelis Technologies, Inc.* | 11,684 | 248,752 | ||||||
Broadcom, Inc. | 16,764 | 5,337,658 | ||||||
Brooks Automation, Inc.(a) | 5,334 | 200,078 | ||||||
Cabot Microelectronics Corp. | 2,286 | 288,607 | ||||||
CEVA, Inc.* | 254 | 6,398 |
See Accompanying Notes to the Financial Statements.
82 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Cirrus Logic, Inc.* | 19,558 | $ | 930,570 | |||||
Cohu, Inc. | 266 | 3,945 | ||||||
Cree, Inc.* (a) | 4,826 | 318,950 | ||||||
Cypress Semiconductor Corp. | 41,910 | 720,014 | ||||||
Diodes, Inc.* | 9,144 | 333,024 | ||||||
Entegris, Inc. | 18,034 | 736,869 | ||||||
First Solar, Inc.* (a) | 3,810 | 234,429 | ||||||
FormFactor, Inc.* | 18,288 | 346,558 | ||||||
Inphi Corp.* | 2,540 | 115,976 | ||||||
Intel Corp. | 227,584 | 11,615,887 | ||||||
KLA-Tencor Corp. | 6,350 | 809,498 | ||||||
Kulicke & Soffa Industries, Inc. | 13,970 | 325,082 | ||||||
Lam Research Corp. | 5,842 | 1,211,806 | ||||||
Lattice Semiconductor Corp.* | 8,128 | 105,258 | ||||||
MACOM Technology Solutions Holdings, Inc.* | 5,080 | 70,561 | ||||||
MagnaChip Semiconductor Corp.* (a) | 13,462 | 119,139 | ||||||
Marvell Technology Group Ltd.(a) | 13,462 | 336,819 | ||||||
Maxim Integrated Products, Inc. | 7,112 | 426,720 | ||||||
MaxLinear, Inc.* (a) | 2,032 | 54,681 | ||||||
Mellanox Technologies Ltd.* | 1,778 | 213,893 | ||||||
Microchip Technology, Inc.(a) | 8,636 | 862,650 | ||||||
Micron Technology, Inc.* | 35,814 | 1,506,337 | ||||||
MKS Instruments, Inc. | 17,780 | 1,618,158 | ||||||
Monolithic Power Systems, Inc.(a) | 3,810 | 593,255 | ||||||
Nanometrics, Inc.* | 254 | 7,567 | ||||||
NVIDIA Corp. | 23,114 | 4,183,634 | ||||||
ON Semiconductor Corp.* | 21,590 | 497,865 | ||||||
PDF Solutions, Inc.* (a) | 1,016 | 13,188 | ||||||
Photronics, Inc.* (a) | 10,414 | 97,267 | ||||||
Power Integrations, Inc. | 1,778 | 140,498 | ||||||
Qorvo, Inc.* | 7,874 | 595,353 | ||||||
QUALCOMM, Inc. | 56,642 | 4,878,575 | ||||||
Rambus, Inc.* | 5,080 | 58,217 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Rudolph Technologies, Inc.* | 1,778 | $ | 43,010 | |||||
Semtech Corp.* | 1,778 | 95,781 | ||||||
Silicon Laboratories, Inc.* | 2,286 | 246,111 | ||||||
Skyworks Solutions, Inc. | 5,842 | 515,148 | ||||||
SMART Global Holdings, Inc.* (a) | 3,810 | 82,829 | ||||||
SolarEdge Technologies, Inc.* (a) | 7,620 | 337,566 | ||||||
SunPower Corp.* (a) | 5,080 | 36,678 | ||||||
Synaptics, Inc.* (a) | 1,270 | 47,841 | ||||||
Teradyne, Inc. | 6,350 | 311,150 | ||||||
Texas Instruments, Inc. | 35,560 | 4,190,035 | ||||||
Ultra Clean Holdings, Inc.* (a) | 20,828 | 249,311 | ||||||
Universal Display Corp.(a) | 1,524 | 243,230 | ||||||
Veeco Instruments, Inc.* (a) | 24,638 | 300,091 | ||||||
Versum Materials, Inc. | 6,350 | 331,343 | ||||||
Xilinx, Inc. | 6,350 | 762,889 | ||||||
Xperi Corp. | 15,748 | 391,338 | ||||||
54,317,794 | ||||||||
Software – 5.3% | ||||||||
2U, Inc.* (a) | 3,810 | 230,505 | ||||||
8x8, Inc.* (a) | 7,874 | 188,346 | ||||||
ACI Worldwide, Inc.* (a) | 11,938 | 424,038 | ||||||
Adobe, Inc.* | 18,288 | 5,289,804 | ||||||
ANSYS, Inc.* | 2,540 | 497,332 | ||||||
Appian Corp.* (a) | 1,524 | 55,001 | ||||||
Aspen Technology, Inc.* | 6,604 | 805,094 | ||||||
Autodesk, Inc.* | 8,382 | 1,493,756 | ||||||
Avaya Holdings Corp.* | 37,592 | 717,255 | ||||||
Blackbaud, Inc.(a) | 3,048 | 241,676 | ||||||
Blackline, Inc.* (a) | 1,016 | 51,897 | ||||||
Bottomline Technologies DE, Inc.* | 508 | 25,690 | ||||||
Box, Inc., Class A* | 7,366 | 151,887 | ||||||
Cadence Design Systems, Inc.* | 10,414 | 722,523 | ||||||
CDK Global, Inc. | 6,858 | 413,675 | ||||||
Cision Ltd.* | 4,318 | 52,075 | ||||||
Citrix Systems, Inc. | 5,080 | 512,877 | ||||||
Cloudera, Inc.* (a) | 18,189 | 202,444 | ||||||
Cornerstone OnDemand, Inc.* | 2,032 | 111,049 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 83 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Coupa Software, Inc.* | 1,524 | $ | 157,475 | |||||
Digimarc Corp.* (a) | 762 | 22,700 | ||||||
Dropbox, Inc., Class A* | 7,620 | 185,776 | ||||||
Ebix, Inc.(a) | 3,556 | 179,507 | ||||||
Envestnet, Inc.* (a) | 2,032 | 144,252 | ||||||
Fair Isaac Corp.* | 2,286 | 639,508 | ||||||
FireEye, Inc.* (a) | 10,668 | 170,901 | ||||||
Five9, Inc.* | 2,032 | 107,838 | ||||||
Fortinet, Inc.* | 10,160 | 949,147 | ||||||
Guidewire Software, Inc.* | 2,540 | 270,510 | ||||||
HubSpot, Inc.* (a) | 508 | 93,721 | ||||||
Intuit, Inc. | 7,620 | 1,913,077 | ||||||
j2 Global, Inc.(a) | 3,048 | 267,066 | ||||||
LogMeIn, Inc. | 1,778 | 146,507 | ||||||
Manhattan Associates, Inc.* (a) | 4,064 | 274,117 | ||||||
Microsoft Corp. | 293,116 | 38,280,950 | ||||||
MicroStrategy, Inc., Class A* | 1,016 | 152,095 | ||||||
Mimecast Ltd.* | 2,540 | 130,835 | ||||||
Monotype Imaging Holdings, Inc. | 2,032 | 35,032 | ||||||
Nuance Communications, Inc.* | 8,890 | 149,619 | ||||||
Nutanix, Inc., Class A* (a) | 3,302 | 142,613 | ||||||
OneSpan, Inc.* | 3,302 | 61,219 | ||||||
Oracle Corp. | 88,392 | 4,890,729 | ||||||
Palo Alto Networks, Inc.* | 2,540 | 632,028 | ||||||
Paycom Software, Inc.* | 1,016 | 205,770 | ||||||
Pegasystems, Inc.(a) | 3,302 | 247,683 | ||||||
Progress Software Corp. | 3,810 | 173,774 | ||||||
Proofpoint, Inc.* | 2,540 | 318,567 | ||||||
PTC, Inc.* | 9,144 | 827,258 | ||||||
Qualys, Inc.* (a) | 1,524 | 137,556 | ||||||
RealPage, Inc.* | 1,270 | 82,817 | ||||||
Red Hat, Inc.* | 6,350 | 1,159,065 | ||||||
RingCentral, Inc., Class A* | 762 | 88,674 | ||||||
salesforce.com, Inc.* | 28,448 | 4,703,877 | ||||||
ServiceNow, Inc.* | 6,350 | 1,724,089 | ||||||
Splunk, Inc.* (a) | 5,334 | 736,305 | ||||||
SPS Commerce, Inc.* | 762 | 79,050 | ||||||
SS&C Technologies Holdings, Inc. | 7,366 | 498,384 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
Symantec Corp. | 32,512 | $ | 787,116 | |||||
Synchronoss Technologies, Inc.* | 15,748 | 84,724 | ||||||
Synopsys, Inc.* | 3,810 | 461,315 | ||||||
Tableau Software, Inc., Class A* | 3,048 | 371,277 | ||||||
Teradata Corp.* | 16,002 | 727,611 | ||||||
Trade Desk, Inc. (The), Class A* (a) | 2,032 | 450,047 | ||||||
Tyler Technologies, Inc.* | 1,778 | 412,336 | ||||||
Ultimate Software Group, Inc. (The)* | 1,778 | 587,896 | ||||||
Verint Systems, Inc.* | 18,034 | 1,089,073 | ||||||
VMware, Inc., Class A | 1,524 | 311,094 | ||||||
Workday, Inc., Class A* | 5,080 | 1,044,600 | ||||||
Zendesk, Inc.* | 3,048 | 267,553 | ||||||
79,761,657 | ||||||||
Specialty Retail – 2.5% | ||||||||
Aaron’s, Inc. | 19,812 | 1,103,330 | ||||||
Abercrombie & Fitch Co., Class A(a) | 25,654 | 766,798 | ||||||
Advance Auto Parts, Inc. | 3,048 | 506,943 | ||||||
American Eagle Outfitters, Inc. | 46,990 | 1,117,422 | ||||||
Asbury Automotive Group, Inc.* (a) | 9,652 | 773,897 | ||||||
Ascena Retail Group, Inc.* (a) | 85,852 | 102,164 | ||||||
AutoNation, Inc.* (a) | 508 | 21,300 | ||||||
AutoZone, Inc.* | 1,016 | 1,044,763 | ||||||
Barnes & Noble Education, Inc.* | 7,112 | 30,582 | ||||||
Barnes & Noble, Inc.(a) | 254 | 1,278 | ||||||
Bed Bath & Beyond, Inc.(a) | 57,404 | 959,221 | ||||||
Best Buy Co., Inc. | 10,414 | 774,906 | ||||||
Boot Barn Holdings, Inc.* (a) | 2,794 | 80,439 | ||||||
Buckle, Inc. (The)(a) | 9,906 | 183,063 | ||||||
Burlington Stores, Inc.* (a) | 5,334 | 900,966 | ||||||
Caleres, Inc. | 12,192 | 319,796 | ||||||
Camping World Holdings, Inc., Class A(a) | 17,018 | 253,909 | ||||||
CarMax, Inc.* | 10,160 | 791,058 | ||||||
Chico’s FAS, Inc. | 43,688 | 152,908 |
See Accompanying Notes to the Financial Statements.
84 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Children’s Place, Inc. (The)(a) | 2,032 | $ | 229,250 | |||||
Citi Trends, Inc. | 2,540 | 47,015 | ||||||
Conn’s, Inc.* | 8,382 | 216,842 | ||||||
Designer Brands, Inc. | 254 | 5,652 | ||||||
Dick’s Sporting Goods, Inc.(a) | 20,320 | 751,840 | ||||||
Five Below, Inc.* | 1,778 | 260,281 | ||||||
Floor & Decor Holdings, Inc., Class A* (a) | 6,604 | 317,124 | ||||||
Foot Locker, Inc. | 18,796 | 1,075,319 | ||||||
Gap, Inc. (The) | 12,954 | 337,840 | ||||||
Genesco, Inc.* | 7,112 | 318,689 | ||||||
Guess?, Inc. | 1,778 | 36,218 | ||||||
Haverty Furniture Cos., Inc.(a) | 1,016 | 24,201 | ||||||
Hibbett Sports, Inc.* | 6,604 | 136,703 | ||||||
Home Depot, Inc. (The) | 45,466 | 9,261,424 | ||||||
L Brands, Inc. | 14,224 | 364,703 | ||||||
Lithia Motors, Inc., Class A(a) | 1,524 | 173,005 | ||||||
Lowe’s Cos., Inc. | 26,416 | 2,988,706 | ||||||
MarineMax, Inc.* | 3,048 | 52,700 | ||||||
Monro, Inc.(a) | 2,286 | 191,635 | ||||||
Murphy USA, Inc.* (a) | 5,080 | 434,188 | ||||||
National Vision Holdings, Inc.* (a) | 6,858 | 185,166 | ||||||
Office Depot, Inc. | 128,016 | 307,238 | ||||||
O’Reilly Automotive, Inc.* | 2,794 | 1,057,725 | ||||||
Penske Automotive Group, Inc.(a) | 3,810 | 174,955 | ||||||
RH* (a) | 5,080 | 542,087 | ||||||
Ross Stores, Inc. | 10,414 | 1,017,031 | ||||||
Sally Beauty Holdings, Inc.* (a) | 42,926 | 759,790 | ||||||
Shoe Carnival, Inc. | 508 | 18,115 | ||||||
Sleep Number Corp.* | 4,572 | 159,106 | ||||||
Tiffany & Co.(a) | 5,334 | 575,112 | ||||||
TJX Cos., Inc. (The) | 44,450 | 2,439,416 | ||||||
Tractor Supply Co. | 7,874 | 814,959 | ||||||
Ulta Beauty, Inc.* | 1,270 | 443,205 | ||||||
Urban Outfitters, Inc.* (a) | 24,384 | 724,936 | ||||||
Williams-Sonoma, Inc.(a) | 13,970 | 798,665 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
Zumiez, Inc.* | 6,350 | $ | 169,101 | |||||
37,294,685 | ||||||||
Technology Hardware, Storage & Peripherals – 2.7% | ||||||||
3D Systems Corp.* (a) | 13,462 | 143,236 | ||||||
Apple, Inc. | 170,688 | 34,251,961 | ||||||
Cray, Inc.* | 2,540 | 66,700 | ||||||
Dell Technologies, Inc., Class C* | 6,083 | 410,055 | ||||||
Diebold Nixdorf, Inc.* | 40,894 | 412,620 | ||||||
Electronics For Imaging, Inc.* (a) | 2,032 | 75,570 | ||||||
Hewlett Packard Enterprise Co. | 75,184 | 1,188,659 | ||||||
HP, Inc. | 66,040 | 1,317,498 | ||||||
NetApp, Inc. | 14,732 | 1,073,226 | ||||||
Pure Storage, Inc., Class A* (a) | 20,574 | 470,322 | ||||||
Seagate Technology plc(a) | 8,128 | 392,745 | ||||||
Western Digital Corp. | 15,748 | 805,038 | ||||||
Xerox Corp. | 10,160 | 338,938 | ||||||
40,946,568 | ||||||||
Textiles, Apparel & Luxury Goods – 0.7% | ||||||||
Capri Holdings Ltd.* | 10,668 | 470,245 | ||||||
Carter’s, Inc.(a) | 1,270 | 134,506 | ||||||
Columbia Sportswear Co. | 3,048 | 304,708 | ||||||
Crocs, Inc.* (a) | 10,414 | 290,030 | ||||||
Deckers Outdoor Corp.* | 7,112 | 1,125,189 | ||||||
Fossil Group, Inc.* (a) | 15,240 | 199,187 | ||||||
G-III Apparel Group Ltd.* (a) | 4,318 | 186,322 | ||||||
Hanesbrands, Inc. | 21,590 | 390,131 | ||||||
Lululemon Athletica, Inc.* | 2,540 | 447,929 | ||||||
Movado Group, Inc.(a) | 4,064 | 144,882 | ||||||
NIKE, Inc., Class B | 41,402 | 3,636,338 | ||||||
Oxford Industries, Inc.(a) | 4,572 | 379,750 | ||||||
Skechers U.S.A., Inc., Class A* (a) | 16,256 | 514,665 | ||||||
Steven Madden Ltd.(a) | 6,464 | 234,966 | ||||||
Under Armour, Inc., Class A* (a) | 11,430 | 263,919 | ||||||
Under Armour, Inc., Class C* | 2,032 | 42,103 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 85 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Unifi, Inc.* | 2,540 | $ | 51,308 | |||||
Vera Bradley, Inc.* (a) | 14,224 | 174,671 | ||||||
VF Corp. | 13,970 | 1,318,908 | ||||||
Wolverine World Wide, Inc. | 26,670 | 981,723 | ||||||
11,291,480 | ||||||||
Thrifts & Mortgage Finance – 0.7% | ||||||||
Axos Financial, Inc.* (a) | 16,764 | 548,518 | ||||||
Capitol Federal Financial, Inc. | 1,270 | 17,526 | ||||||
Dime Community Bancshares, Inc.(a) | 11,430 | 230,314 | ||||||
Essent Group Ltd.* | 36,576 | 1,735,531 | ||||||
Federal Agricultural Mortgage Corp., Class C | 3,810 | 291,389 | ||||||
Flagstar Bancorp, Inc. | 13,970 | 499,427 | ||||||
HomeStreet, Inc.* | 4,318 | 121,509 | ||||||
LendingTree, Inc.* | 762 | 293,233 | ||||||
Luther Burbank Corp. | 12,446 | 131,056 | ||||||
Merchants Bancorp | 3,048 | 73,701 | ||||||
Meridian Bancorp, Inc. | 4,826 | 83,104 | ||||||
Meta Financial Group, Inc. | 7,620 | 196,291 | ||||||
MGIC Investment Corp.* | 57,404 | 840,395 | ||||||
Mr Cooper Group, Inc.* (a) | 7,366 | 63,348 | ||||||
Northfield Bancorp, Inc. | 5,080 | 76,200 | ||||||
Northwest Bancshares, Inc. | 16,002 | 278,915 | ||||||
Ocwen Financial Corp.* | 102,870 | 173,850 | ||||||
Oritani Financial Corp. | 1,016 | 17,628 | ||||||
PennyMac Financial Services, Inc. | 22,098 | 492,785 | ||||||
Provident Financial Services, Inc. | 18,288 | 484,998 | ||||||
Radian Group, Inc. | 67,564 | 1,582,349 | ||||||
TFS Financial Corp.(a) | 2,794 | 46,492 | ||||||
TrustCo Bank Corp.(a) | 29,972 | 239,776 | ||||||
United Financial Bancorp, Inc. | 2,794 | 36,853 | ||||||
Walker & Dunlop, Inc. | 8,890 | 488,505 | ||||||
Washington Federal, Inc. | 32,766 | 1,085,865 | ||||||
WSFS Financial Corp. | 5,493 | 237,188 | ||||||
10,366,746 |
Investments | Shares | Value | ||||||
Tobacco – 0.7% | ||||||||
Altria Group, Inc. | 76,454 | $ | 4,153,746 | |||||
Philip Morris International, Inc. | 62,992 | 5,452,587 | ||||||
Pyxus International, Inc.* | 4,572 | 104,379 | ||||||
Universal Corp. | 6,858 | 369,372 | ||||||
10,080,084 | ||||||||
Trading Companies & Distributors – 0.7% | ||||||||
Air Lease Corp. | 26,416 | 1,018,601 | ||||||
Aircastle Ltd. | 18,542 | 369,357 | ||||||
Applied Industrial Technologies, Inc. | 4,318 | 258,821 | ||||||
Beacon Roofing Supply, Inc.* (a) | 22,860 | 860,908 | ||||||
BMC Stock Holdings, Inc.* | 21,082 | 433,867 | ||||||
CAI International, Inc.* | 6,604 | 163,977 | ||||||
DXP Enterprises, Inc.* | 4,064 | 174,305 | ||||||
Fastenal Co.(a) | 7,112 | 501,752 | ||||||
Foundation Building Materials, Inc.* | 9,652 | 131,171 | ||||||
GATX Corp.(a) | 16,764 | 1,293,007 | ||||||
GMS, Inc.* (a) | 13,208 | 232,725 | ||||||
H&E Equipment Services, Inc. | 12,700 | 386,207 | ||||||
HD Supply Holdings, Inc.* | 2,032 | 92,842 | ||||||
Herc Holdings, Inc.* | 5,334 | 256,885 | ||||||
Kaman Corp. | 6,350 | 393,128 | ||||||
MSC Industrial Direct Co., Inc., Class A | 2,794 | 233,718 | ||||||
NOW, Inc.* (a) | 39,116 | 571,876 | ||||||
Rush Enterprises, Inc., Class A | 9,906 | 420,113 | ||||||
SiteOne Landscape Supply, Inc.* (a) | 2,540 | 170,942 | ||||||
Systemax, Inc. | 4,318 | 98,062 | ||||||
Triton International Ltd. | 17,780 | 585,851 | ||||||
United Rentals, Inc.* | 3,556 | 501,111 | ||||||
Univar, Inc.* | 7,627 | 170,311 | ||||||
Watsco, Inc.(a) | 1,778 | 281,760 | ||||||
WESCO International, Inc.* | 15,494 | 886,877 | ||||||
WW Grainger, Inc. | 508 | 143,256 | ||||||
10,631,430 |
See Accompanying Notes to the Financial Statements.
86 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – 0.1% | ||||||||
Macquarie Infrastructure Corp. | 25,146 | $ | 1,018,664 | |||||
Water Utilities – 0.1% | ||||||||
American States Water Co. | 4,826 | 343,466 | ||||||
American Water Works Co., Inc. | 4,064 | 439,684 | ||||||
Aqua America, Inc.(a) | 5,080 | 198,425 | ||||||
California Water Service Group | 4,826 | 243,182 | ||||||
Connecticut Water Service, Inc.(a) | 508 | 34,834 | ||||||
SJW Group | 762 | 47,290 | ||||||
1,306,881 | ||||||||
Wireless Telecommunication Services – 0.2% | ||||||||
Boingo Wireless, Inc.* | 4,826 | 109,743 | ||||||
Gogo, Inc.* (a) | 22,860 | 120,244 | ||||||
NII Holdings, Inc.* (a) | 21,590 | 42,316 | ||||||
Shenandoah Telecommunications Co. | 8,382 | 346,428 | ||||||
Spok Holdings, Inc. | 2,794 | 38,697 | ||||||
Sprint Corp.* | 35,560 | 198,425 | ||||||
Telephone & Data Systems, Inc. | 10,414 | 331,998 | ||||||
T-Mobile US, Inc.* | 14,478 | 1,056,749 | ||||||
United States Cellular Corp.* | 1,016 | 48,870 | ||||||
2,293,470 | ||||||||
Total Common Stocks (Cost $983,977,808) |
| 1,479,501,471 | ||||||
Number of Rights | ||||||||
RIGHTS – 0.0%(c) | ||||||||
Chemicals – 0.0%(c) | ||||||||
A Schulman, Inc., CVR* ‡ (d) | 8,214 | 4,296 | ||||||
Media – 0.0%(c) | ||||||||
Media General, Inc., CVR* ‡ (d) | 22,261 | 2,226 | ||||||
Total Rights (Cost $–) | 6,522 |
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – 6.9% | ||||||||
CERTIFICATES OF DEPOSIT – 3.0% | ||||||||
ABN AMRO Bank NV | ||||||||
2.62%, 7/5/2019 | $ | 2,000,000 | $ | 1,990,700 | ||||
Bank of Montreal, Chicago | ||||||||
(ICE LIBOR USD 1 Month + 0.33%), 2.80%, 8/6/2019(f) | 5,000,000 | 5,003,380 | ||||||
Bank of Nova Scotia, Houston | ||||||||
(SOFR + 0.43%), 2.91%, 5/16/2019(f) | 2,000,000 | 2,000,000 | ||||||
(ICE LIBOR USD 3 Month + 0.22%), 2.67%, 12/30/2019(f) | 1,000,000 | 1,000,972 | ||||||
Barclays Bank plc, New York | ||||||||
2.95%, 8/2/2019 | 1,000,000 | 1,000,428 | ||||||
Cooperatieve Rabobank UA, London | ||||||||
(ICE LIBOR USD 1 Month + 0.19%), 2.67%, 4/24/2020(f) | 4,000,000 | 4,000,000 | ||||||
Credit Agricole CIB, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.70%, 12/20/2019(f) | 2,000,000 | 2,000,492 | ||||||
KBC Bank NV, Brussels | ||||||||
2.61%, 7/2/2019 | 3,000,000 | 3,000,000 | ||||||
Nationwide Building Society | ||||||||
2.73%, 6/24/2019 | 1,000,000 | 995,943 | ||||||
Royal Bank of Canada, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.68%, 9/17/2019(f) | 3,000,000 | 3,001,263 | ||||||
Shizuoka Bank Ltd., New York | ||||||||
2.59%, 6/11/2019 | 2,000,000 | 2,000,000 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 87 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Societe Generale, New York | ||||||||
(ICE LIBOR USD 3 Month + 0.20%), 2.71%, 8/5/2019(f) | $ | 1,000,000 | $ | 1,000,586 | ||||
(ICE LIBOR USD 3 Month + 0.20%), 2.72%, 8/21/2019(f) | 1,000,000 | 1,000,703 | ||||||
Standard Chartered, New York | ||||||||
2.69%, 8/14/2019 | 2,000,000 | 2,000,644 | ||||||
Sumitomo Mitsui Trust Bank Ltd., New York | ||||||||
2.59%, 7/3/2019 | 2,000,000 | 2,000,166 | ||||||
The Chiba Bank Ltd., New York Branch | ||||||||
2.62%, 6/6/2019 | 2,000,000 | 2,000,000 | ||||||
The Sumitomo Bank Ltd., New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.68%, 5/17/2019(f) | 3,000,000 | 3,000,000 | ||||||
Toronto-Dominion Bank, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.68%, 9/17/2019(f) | 2,000,000 | 2,000,920 | ||||||
Wells Fargo Bank (San Francisco) NA | 3,500,000 | |||||||
Westpac Banking Corp., New York | ||||||||
(US Federal Funds Effective Rate (continuous series) + 0.30%), 2.75%, 2/14/2020(f) | 2,000,000 | 1,999,993 | ||||||
Total Certificates of Deposit (Cost $44,488,602) |
| 44,496,190 | ||||||
Investments | Principal Amount | Value | ||||||
COMMERCIAL PAPER – 0.4% | ||||||||
National Bank of Canada |
| |||||||
(ICE LIBOR USD 1 Month + 0.27%), 2.74%, 5/7/2019(f) (g) | $ | 5,000,000 | $ | 5,000,000 | ||||
Toyota Motor Credit Corp. | ||||||||
2.65%, 8/29/2019 | 1,500,000 | 1,487,272 | ||||||
Total Commercial Paper (Cost $6,486,900) |
| 6,487,272 | ||||||
REPURCHASE AGREEMENTS – 3.5% | ||||||||
Citadel Clearing LLC, 3.03%, dated 4/30/2019, due 7/31/2019, repurchase price $5,038,716, collateralized by various Common Stocks; total market value $5,515,709 | 5,000,000 | 5,000,000 | ||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $14,477,186, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $14,766,772 | 14,476,080 | 14,476,080 | ||||||
ML Pierce Fenner & Smith, Inc., 2.97%, dated 4/30/2019, due 7/31/2019, repurchase price $6,045,540, collateralized by various Common Stocks; total market value $6,634,594 | 6,000,000 | 6,000,000 |
See Accompanying Notes to the Financial Statements.
88 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Societe Generale, 2.53%, dated 4/30/2019, due 5/1/2019, repurchase price $26,751,880, collateralized by various U.S. Treasury Securities, ranging from 0.38% – 2.88%, maturing 2/15/2020 – 8/15/2026; Common Stocks; total market value $29,827,815 | $ | 26,750,000 | $ | 26,750,000 | ||||
Total Repurchase Agreements (Cost $52,226,080) |
| 52,226,080 | ||||||
Total Securities Lending Reinvestments (Cost $103,201,582) |
| 103,209,542 | ||||||
Total Investments – 105.3% (Cost $1,087,179,390) |
| 1,582,717,535 | ||||||
Liabilities in excess of other assets – (5.3%) |
| (79,061,162 | ) | |||||
NET ASSETS – 100.0% |
| $ | 1,503,656,373 |
* | Non-income producing security. |
‡ | Value determined using significant unobservable inputs. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $141,912,223, collateralized in the form of cash with a value of $103,184,691 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $40,601,715 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 9, 2019 – November 15, |
2048 and $3,281,548 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from July 15, 2019 – July 22, 2068; a total value of $147,067,954. |
(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 April 30, 2019 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2019 amounted to $6,522, 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 April 30, 2019. The total value of securities purchased was $103,209,542. |
(f) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2019. |
(g) | 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. |
Percentages shown are based on Net Assets.
Abbreviations
CVR – Contingent Value Rights
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
SOFR – Secured Overnight Financing Rate
USD – US Dollar
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 508,472,124 | ||
Aggregate gross unrealized depreciation | (12,674,705 | ) | ||
Net unrealized appreciation | $ | 495,797,419 | ||
Federal income tax cost | $ | 1,088,074,410 |
Investment in a company which was affiliated for the period ended April 30, 2019, was as follows:
Security | Value October 31, 2018 | Purchases at Cost | Sales Proceeds | Shares April 30, 2019 | Value April 30, 2019 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Loss | ||||||||||||||||||||||||
Northern Trust Corp. | $ | 809,190 | $ | 22,035 | $ | 201,119 | 6,350 | $ | 625,792 | $ | 15,073 | $ | 8,485 | $ | (19,387 | ) |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 89 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Futures Contracts
FlexShares® Morningstar US Market Factor Tilt Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
Russell 2000E-Mini Index | 48 | 06/21/2019 | USD | $ | 3,826,080 | $ | 124,170 | |||||||||||||
S&P 500E-Mini Index | 103 | 06/21/2019 | USD | 15,184,775 | 810,632 | |||||||||||||||
S&P Midcap 400E-Mini Index | 26 | 06/21/2019 | USD | 5,130,840 | 219,492 | |||||||||||||||
$ | 1,154,294 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
90 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 97.9% | ||||||||
Aerospace & Defense – 0.8% | ||||||||
Airbus SE | 18,177 | $ | 2,482,813 | |||||
BAE Systems plc(a) | 82,834 | 533,453 | ||||||
Bombardier, Inc., Class A* | 35,360 | 62,561 | ||||||
Bombardier, Inc., Class B* | 48,735 | 82,964 | ||||||
CAE, Inc. | 7,384 | 171,042 | ||||||
Cobham plc* | 7,653 | 11,503 | ||||||
Dassault Aviation SA | 55 | 83,150 | ||||||
Elbit Systems Ltd. | 412 | 57,298 | ||||||
FACC AG | 4,480 | 73,403 | ||||||
Leonardo SpA | 33,772 | 389,648 | ||||||
LISI | 3,196 | 106,915 | ||||||
Maxar Technologies, Inc.(a) | 52,603 | 257,697 | ||||||
Meggitt plc | 38,595 | 273,911 | ||||||
MTU Aero Engines AG | 1,494 | 351,106 | ||||||
QinetiQ Group plc | 30,657 | 120,458 | ||||||
Rolls-Royce Holdings plc* | 49,219 | 586,847 | ||||||
Saab AB, Class B | 2,493 | 81,948 | ||||||
Safran SA | 10,624 | 1,546,631 | ||||||
Senior plc | 47,440 | 143,357 | ||||||
Singapore Technologies Engineering Ltd. | 17,900 | 52,075 | ||||||
Thales SA | 3,818 | 455,482 | ||||||
Ultra Electronics Holdings plc | 1,661 | 34,473 | ||||||
7,958,735 | ||||||||
Air Freight & Logistics – 0.4% | ||||||||
Bollore SA | 12,720 | 60,385 | ||||||
bpost SA(a) | 15,440 | 185,322 | ||||||
Cia de Distribucion Integral Logista Holdings SA | 2,159 | 51,150 | ||||||
Deutsche Post AG (Registered)* | 33,532 | 1,161,201 | ||||||
Freightways Ltd. | 12,987 | 73,619 | ||||||
ID Logistics Group* | 81 | 14,470 | ||||||
Kerry Logistics Network Ltd. | 40,500 | 72,168 | ||||||
Kintetsu World Express, Inc. | 14,000 | 210,927 | ||||||
Konoike Transport Co. Ltd. | 31,000 | 500,175 | ||||||
Mainfreight Ltd. | 3,192 | 74,506 | ||||||
Panalpina Welttransport Holding AG (Registered) | 680 | 146,010 |
Investments | Shares | Value | ||||||
Air Freight & Logistics – (continued) | ||||||||
PostNL NV(a) | 340,738 | $ | 881,726 | |||||
Royal Mail plc | 20,480 | 67,494 | ||||||
SBS Holdings, Inc.(a) | 16,800 | 282,979 | ||||||
SG Holdings Co. Ltd. | 2,400 | 64,108 | ||||||
Yamato Holdings Co. Ltd. | 12,800 | 277,262 | ||||||
4,123,502 | ||||||||
Airlines – 0.7% | ||||||||
Air Canada* | 21,829 | 521,871 | ||||||
AirFrance-KLM* | 20,252 | 233,773 | ||||||
Air New Zealand Ltd. | 30,617 | 54,824 | ||||||
ANA Holdings, Inc. | 4,500 | 157,091 | ||||||
Chorus Aviation, Inc.(a) | 152,637 | 849,874 | ||||||
Dart Group plc(a) | 79,680 | 967,075 | ||||||
Deutsche Lufthansa AG (Registered) | 17,015 | 410,359 | ||||||
easyJet plc | 6,640 | 100,715 | ||||||
Exchange Income Corp.(a) | 30,378 | 801,679 | ||||||
Finnair OYJ | 61,586 | 514,195 | ||||||
International Consolidated Airlines Group SA, DI | 43,658 | 307,567 | ||||||
Japan Airlines Co. Ltd. | 8,800 | 294,637 | ||||||
Norwegian Air Shuttle ASA* (a) | 21,600 | 90,122 | ||||||
Qantas Airways Ltd. | 41,760 | 164,893 | ||||||
SAS AB* | 178,649 | 325,472 | ||||||
Singapore Airlines Ltd. | 12,000 | 85,336 | ||||||
WestJet Airlines Ltd.(a) | 110,048 | 1,546,988 | ||||||
Wizz Air Holdings plc* (b) | 2,172 | 96,272 | ||||||
7,522,743 | ||||||||
Auto Components – 2.3% | ||||||||
Aisan Industry Co. Ltd. | 12,808 | 86,364 | ||||||
Aisin Seiki Co. Ltd. | 9,600 | 371,071 | ||||||
ARB Corp. Ltd.(a) | 997 | 12,722 | ||||||
Autoneum Holding AG(a) | 1,898 | 251,266 | ||||||
Brembo SpA | 3,647 | 47,820 | ||||||
Bridgestone Corp. | 35,700 | 1,412,294 | ||||||
CIE Automotive SA | 3,217 | 89,628 | ||||||
Cie Generale des Etablissements Michelin SCA | 8,632 | 1,113,948 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 91 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Cie Plastic Omnium SA | 720 | $ | 21,778 | |||||
CIR-Compagnie Industriali Riunite SpA | 205,010 | 251,811 | ||||||
Continental AG | 6,391 | 1,055,450 | ||||||
Daikyonishikawa Corp. | 51,604 | 517,546 | ||||||
Denso Corp. | 21,000 | 915,044 | ||||||
Dometic Group AB(c) | 950 | 8,678 | ||||||
Eagle Industry Co. Ltd. | 12,600 | 143,790 | ||||||
Exedy Corp. | 2,800 | 63,806 | ||||||
Faurecia SA | 6,640 | 336,949 | ||||||
FCC Co. Ltd. | 5,300 | 109,022 | ||||||
Futaba Industrial Co. Ltd. | 35,200 | 220,602 | ||||||
Gestamp Automocion SA(b) | 24,236 | 154,412 | ||||||
G-Tekt Corp. | 26,800 | 379,952 | ||||||
GUD Holdings Ltd. | 4,852 | 40,366 | ||||||
Hella GmbH & Co. KGaA | 4,777 | 259,435 | ||||||
HI-LEX Corp. | 23,964 | 444,316 | ||||||
Ichikoh Industries Ltd. | 17,400 | 107,954 | ||||||
Keihin Corp. | 12,300 | 201,880 | ||||||
Koito Manufacturing Co. Ltd. | 3,200 | 190,204 | ||||||
KYB Corp. | 19,900 | 537,814 | ||||||
Leoni AG | 24,798 | 570,830 | ||||||
Linamar Corp. | 880 | 33,245 | ||||||
Magna International, Inc. | 14,276 | 791,378 | ||||||
Martinrea International, Inc. | 96,778 | 980,586 | ||||||
Musashi Seimitsu Industry Co. Ltd.(a) | 38,200 | 594,394 | ||||||
NGK Spark Plug Co. Ltd. | 7,400 | 143,316 | ||||||
NHK Spring Co. Ltd.(a) | 17,000 | 152,637 | ||||||
Nifco, Inc. | 2,400 | 67,448 | ||||||
Nihon Tokushu Toryo Co. Ltd. | 25,200 | 271,289 | ||||||
Nippon Seiki Co. Ltd. | 49,300 | 816,244 | ||||||
Nissin Kogyo Co. Ltd. | 21,600 | 286,836 | ||||||
NOK Corp. | 16,800 | 268,649 | ||||||
Nokian Renkaat OYJ | 6,911 | 230,961 | ||||||
Pacific Industrial Co. Ltd. | 52,100 | 849,505 | ||||||
Piolax, Inc.(a) | 24,900 | 466,141 | ||||||
Press Kogyo Co. Ltd. | 99,600 | 535,671 | ||||||
Riken Corp. | 8,400 | 401,239 | ||||||
SAF-Holland SA(a) | 47,808 | 594,721 | ||||||
Schaeffler AG (Preference) | 158,115 | 1,348,488 |
Investments | Shares | Value | ||||||
Auto Components – (continued) | ||||||||
Showa Corp. | 50,800 | $ | 742,558 | |||||
Stanley Electric Co. Ltd. | 3,800 | 102,698 | ||||||
Sumitomo Electric Industries Ltd. | 32,600 | 431,593 | ||||||
Sumitomo Riko Co. Ltd. | 29,300 | 256,498 | ||||||
Sumitomo Rubber Industries Ltd. | 9,300 | 114,147 | ||||||
Tachi-S Co. Ltd. | 20,300 | 311,859 | ||||||
TI Fluid Systems plc(b) | 133,962 | 370,236 | ||||||
Tokai Rika Co. Ltd. | 10,700 | 185,323 | ||||||
Topre Corp. | 6,000 | 111,838 | ||||||
Toyo Tire Corp. | 4,600 | 53,651 | ||||||
Toyoda Gosei Co. Ltd. | 7,800 | 161,778 | ||||||
Toyota Boshoku Corp. | 2,700 | 39,855 | ||||||
Toyota Industries Corp. | 9,700 | 548,687 | ||||||
TPR Co. Ltd. | 34,300 | 671,063 | ||||||
TS Tech Co. Ltd. | 9,400 | 280,628 | ||||||
Unipres Corp. | 26,300 | 404,979 | ||||||
Valeo SA | 9,831 | 356,640 | ||||||
Yokohama Rubber Co. Ltd. (The) | 8,000 | 150,339 | ||||||
24,043,870 | ||||||||
Automobiles – 2.6% | ||||||||
Aston Martin Lagonda Global Holdings plc* (a) (b) | 8,000 | 103,604 | ||||||
Bayerische Motoren Werke AG | 15,546 | 1,322,360 | ||||||
Bayerische Motoren Werke AG (Preference) | 5,324 | 392,603 | ||||||
Daimler AG (Registered)* | 55,361 | 3,619,593 | ||||||
Ferrari NV | 3,486 | 471,741 | ||||||
Fiat Chrysler Automobiles NV(a) | 53,120 | 817,607 | ||||||
Honda Motor Co. Ltd. | 102,000 | 2,839,973 | ||||||
Isuzu Motors Ltd. | 36,600 | 524,312 | ||||||
Mazda Motor Corp. | 19,700 | 232,686 | ||||||
Mitsubishi Motors Corp. | 17,300 | 96,771 | ||||||
Nissan Motor Co. Ltd. | 141,500 | 1,134,922 | ||||||
Peugeot SA | 24,595 | 643,886 | ||||||
Porsche Automobil Holding SE (Preference) | 9,711 | 673,012 | ||||||
Renault SA | 9,545 | 650,596 | ||||||
Subaru Corp. | 31,000 | 757,221 | ||||||
Suzuki Motor Corp. | 17,300 | 786,752 | ||||||
Toyota Motor Corp. | 142,400 | 8,828,480 | ||||||
Trigano SA | 1,214 | 116,189 | ||||||
Volkswagen AG | 2,914 | 520,556 |
See Accompanying Notes to the Financial Statements.
92 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Automobiles – (continued) | ||||||||
Volkswagen AG (Preference) | 9,054 | $ | 1,573,163 | |||||
Yamaha Motor Co. Ltd. | 18,900 | 388,267 | ||||||
26,494,294 | ||||||||
Banks – 10.6% | ||||||||
77 Bank Ltd. (The) | 2,300 | 32,773 | ||||||
ABN AMRO Group NV, CVA(a) (b) | 26,145 | 614,436 | ||||||
AIB Group plc | 49,551 | 229,791 | ||||||
Aichi Bank Ltd. (The) | 8,700 | 283,165 | ||||||
Akita Bank Ltd. (The) | 7,900 | 155,553 | ||||||
Aozora Bank Ltd. | 12,700 | 308,905 | ||||||
Australia & New Zealand Banking Group Ltd. | 149,697 | 2,865,907 | ||||||
Banca Monte dei Paschi di Siena SpA* (a) | 257,049 | 389,477 | ||||||
Banca Popolare di Sondrio SCPA | 13,387 | 36,397 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 381,302 | 2,315,248 | ||||||
Banco BPM SpA* (a) | 146,764 | 348,694 | ||||||
Banco Comercial Portugues SA, Class R* (a) | 842,699 | 236,198 | ||||||
Banco de Sabadell SA | 380,140 | 441,360 | ||||||
Banco Espirito Santo SA (Registered)* ‡ (d) | 48,647 | — | ||||||
Banco Santander SA | 896,732 | 4,533,911 | ||||||
Bank Hapoalim BM | 77,522 | 569,413 | ||||||
Bank LeumiLe-Israel BM | 58,183 | 397,635 | ||||||
Bank of Cyprus Holdings plc* | 154,206 | 241,946 | ||||||
Bank of East Asia Ltd. (The) | 21,145 | 66,706 | ||||||
Bank of Georgia Group plc | 2,000 | 44,820 | ||||||
Bank of Ireland Group plc* | 33,283 | 212,238 | ||||||
Bank of Kyoto Ltd. (The) | 2,600 | 112,054 | ||||||
Bank of Montreal | 21,082 | 1,658,413 | ||||||
Bank of Nova Scotia (The) | 64,076 | 3,514,368 | ||||||
Bank of Okinawa Ltd. (The) | 4,240 | 131,530 | ||||||
Bank of Queensland Ltd.(a) | 41,910 | 273,450 | ||||||
Bank of the Ryukyus Ltd. | 23,861 | 257,302 | ||||||
Bankia SA | 33,120 | 91,495 | ||||||
Bankinter SA | 21,280 | 169,754 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Banque Cantonale de Geneve | 480 | $ | 94,681 | |||||
Banque Cantonale Vaudoise (Registered)* | 186 | 146,756 | ||||||
Barclays plc | 807,555 | 1,729,489 | ||||||
BAWAG Group AG(a) (b) | 4,980 | 241,549 | ||||||
Bendigo & Adelaide Bank Ltd. | 3,078 | 22,314 | ||||||
Berner Kantonalbank AG (Registered)(a) | 640 | 149,480 | ||||||
BNP Paribas SA | 63,661 | 3,385,315 | ||||||
BPER Banca(a) | 436,746 | 2,096,852 | ||||||
Caisse Regionale de Credit Agricole Mutuel de Paris etd’Ile-de-France* | 7,885 | 910,359 | ||||||
CaixaBank SA | 219,452 | 698,223 | ||||||
Canadian Imperial Bank of Commerce(a) | 23,157 | 1,941,972 | ||||||
Canadian Western Bank | 9,211 | 205,693 | ||||||
Chiba Bank Ltd. (The) | 17,400 | 90,769 | ||||||
comdirect bank AG | 7,483 | 87,049 | ||||||
Commerzbank AG* | 19,040 | 170,961 | ||||||
Commonwealth Bank of Australia | 52,260 | 2,741,084 | ||||||
Concordia Financial Group Ltd. | 43,121 | 167,257 | ||||||
Credit Agricole SA | 74,202 | 1,017,025 | ||||||
Credito Emiliano SpA(a) | 103,393 | 589,791 | ||||||
Credito Valtellinese SpA* (a) | 4,382,151 | 352,615 | ||||||
CYBG plc | 24,880 | 65,908 | ||||||
Dah Sing Banking Group Ltd. | 24,640 | 47,110 | ||||||
Dah Sing Financial Holdings Ltd. | 5,340 | 28,009 | ||||||
Danske Bank A/S | 32,951 | 583,919 | ||||||
DBS Group Holdings Ltd. | 63,629 | 1,320,540 | ||||||
DNB ASA* (a) | 44,571 | 853,794 | ||||||
Ehime Bank Ltd. (The) | 42,000 | 398,976 | ||||||
Erste Group Bank AG* | 11,786 | 471,546 | ||||||
FIBI Holdings Ltd. | 9,347 | 273,324 | ||||||
FinecoBank Banca Fineco SpA | 6,110 | 80,355 | ||||||
Fukuoka Financial Group, Inc. | 18,816 | 435,197 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 93 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Graubuendner Kantonalbank | 81 | $ | 116,055 | |||||
Gunma Bank Ltd. (The)(a) | 38,900 | 153,330 | ||||||
Hachijuni Bank Ltd. (The) | 58,100 | 232,661 | ||||||
Hang Seng Bank Ltd. | 24,900 | 653,810 | ||||||
Heartland Group Holdings Ltd.(a) | 213,735 | 220,937 | ||||||
Hiroshima Bank Ltd. (The) | 32,000 | 171,816 | ||||||
Hokkoku Bank Ltd. (The) | 20,100 | 617,212 | ||||||
Hokuhoku Financial Group, Inc.(a) | 16,600 | 181,985 | ||||||
HSBC Holdings plc | 654,538 | 5,692,287 | ||||||
Hyakugo Bank Ltd. (The) | 287,200 | 925,745 | ||||||
Hyakujushi Bank Ltd. (The) | 24,900 | 517,339 | ||||||
ING Groep NV(a) | 217,543 | 2,768,598 | ||||||
Intesa Sanpaolo SpA | 803,606 | 2,104,705 | ||||||
Israel Discount Bank Ltd., Class A | 74,801 | 291,227 | ||||||
Juroku Bank Ltd. (The) | 26,700 | 543,230 | ||||||
Jyske Bank A/S (Registered) | 800 | 32,196 | ||||||
KBC Group NV | 12,035 | 890,453 | ||||||
Keiyo Bank Ltd. (The) | 118,500 | 730,950 | ||||||
Kiyo Bank Ltd. (The)(a) | 52,000 | 705,939 | ||||||
Laurentian Bank of Canada(a) | 40,504 | 1,277,869 | ||||||
Liberbank SA* | 1,487,609 | 657,529 | ||||||
Liechtensteinische Landesbank AG | 1,920 | 130,952 | ||||||
Lloyds Banking Group plc | 4,019,275 | 3,278,498 | ||||||
Luzerner Kantonalbank AG (Registered) | 259 | 120,604 | ||||||
Mebuki Financial Group, Inc. | 91,910 | 233,540 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 27,888 | 295,351 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 683,500 | 3,374,695 | ||||||
Miyazaki Bank Ltd. (The)(a) | 9,900 | 237,600 | ||||||
Mizrahi Tefahot Bank Ltd. | 12,483 | 269,662 | ||||||
Mizuho Financial Group, Inc. | 1,292,300 | 2,013,145 | ||||||
Musashino Bank Ltd. (The) | 28,000 | 541,271 | ||||||
Nanto Bank Ltd. (The) | 21,946 | 409,856 | ||||||
National Australia Bank Ltd. | 77,128 | 1,376,164 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
National Bank of Canada | 21,414 | $ | 1,015,939 | |||||
Nordea Bank Abp | 156,531 | 1,230,771 | ||||||
North Pacific Bank Ltd. | 22,600 | 55,194 | ||||||
Ogaki Kyoritsu Bank Ltd. (The) | 44,500 | 1,002,074 | ||||||
Oita Bank Ltd. (The) | 9,900 | 297,333 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 132,800 | 1,180,488 | ||||||
Permanent TSB Group Holdings plc* | 56,800 | 87,208 | ||||||
Raiffeisen Bank International AG | 12,017 | 320,121 | ||||||
Resona Holdings, Inc. | 115,600 | 487,518 | ||||||
Ringkjoebing Landbobank A/S | 1,100 | 71,003 | ||||||
Royal Bank of Canada | 43,245 | 3,432,403 | ||||||
Royal Bank of Scotland Group plc | 207,666 | 648,654 | ||||||
San-In Godo Bank Ltd. (The) | 24,800 | 163,663 | ||||||
Sbanken ASA(b) | 12,000 | 117,814 | ||||||
Seven Bank Ltd. | 48,600 | 131,782 | ||||||
Shiga Bank Ltd. (The) | 1,000 | 23,811 | ||||||
Shikoku Bank Ltd. (The) | 42,900 | 390,963 | ||||||
Shinsei Bank Ltd. | 24,900 | 344,743 | ||||||
Shizuoka Bank Ltd. (The) | 3,100 | 23,659 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 52,290 | 498,435 | ||||||
Skandinaviska Enskilda Banken AB, Class C | 7,040 | 68,128 | ||||||
Societe Generale SA | 36,520 | 1,154,987 | ||||||
Spar Nord Bank A/S | 64,823 | 556,600 | ||||||
SpareBank 1 Nord Norge | 93,292 | 708,793 | ||||||
Sparebank 1 Oestlandet | 16,416 | 163,258 | ||||||
SpareBank 1 SMN | 107,983 | 1,167,553 | ||||||
SpareBank 1SR-Bank ASA | 8,041 | 92,661 | ||||||
St Galler Kantonalbank AG (Registered) | 110 | 49,818 | ||||||
Standard Chartered plc | 151,143 | 1,379,263 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 71,700 | 2,588,603 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 23,000 | 797,953 | ||||||
Suruga Bank Ltd.(a) | 226,700 | 997,378 |
See Accompanying Notes to the Financial Statements.
94 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Svenska Handelsbanken AB, Class A | 33,884 | $ | 369,428 | |||||
Svenska Handelsbanken AB, Class B | 16,864 | 183,065 | ||||||
Swedbank AB, Class A | 32,785 | 531,254 | ||||||
Sydbank A/S | 64,383 | 1,388,821 | ||||||
TBC Bank Group plc | 31,553 | 669,663 | ||||||
Toho Bank Ltd. (The) | 22,732 | 58,782 | ||||||
TOMONY Holdings, Inc. | 177,200 | 642,773 | ||||||
Toronto-Dominion Bank (The) | 55,444 | 3,149,740 | ||||||
Unicaja Banco SA(b) | 786,093 | 902,118 | ||||||
UniCredit SpA | 124,334 | 1,718,076 | ||||||
Unione di Banche Italiane SpA(a) | 87,473 | 272,526 | ||||||
United Overseas Bank Ltd. | 52,026 | 1,063,682 | ||||||
Valiant Holding AG (Registered) | 1,743 | 195,339 | ||||||
Van Lanschot Kempen NV, CVA | 37,267 | 966,863 | ||||||
Walliser Kantonalbank (Registered) | 960 | 111,168 | ||||||
Westpac Banking Corp. | 99,757 | 1,931,586 | ||||||
Yamagata Bank Ltd. (The) | 2,200 | 35,338 | ||||||
Yamaguchi Financial Group, Inc. | 19,000 | 139,888 | ||||||
Yamanashi Chuo Bank Ltd. (The) | 16,600 | 194,058 | ||||||
109,470,801 | ||||||||
Beverages – 1.2% | ||||||||
AG Barr plc | 4,785 | 53,147 | ||||||
Anheuser-Busch InBev SA/NV | 29,750 | 2,642,594 | ||||||
Asahi Group Holdings Ltd. | 17,400 | 754,430 | ||||||
Britvic plc | 16,720 | 199,116 | ||||||
C&C Group plc | 20,320 | 77,085 | ||||||
Carlsberg A/S, Class B | 3,237 | 417,790 | ||||||
Coca-Cola Amatil Ltd. | 37,516 | 232,370 | ||||||
Coca-Cola Bottlers Japan Holdings, Inc. | 3,354 | 82,423 | ||||||
Coca-Cola European Partners plc | 8,300 | 444,797 |
Investments | Shares | Value | ||||||
Beverages – (continued) | ||||||||
Coca-Cola HBC AG, DI* | 4,000 | $ | 142,932 | |||||
Cott Corp. | 2,631 | 40,603 | ||||||
Davide Campari-Milano SpA | 13,794 | 138,899 | ||||||
Diageo plc | 77,688 | 3,274,823 | ||||||
Fevertree Drinks plc | 3,795 | 155,545 | ||||||
Goldin Financial Holdings Ltd.* | 60,000 | 19,196 | ||||||
Heineken Holding NV | 2,822 | 286,375 | ||||||
Heineken NV(a) | 6,059 | 653,500 | ||||||
Ito En Ltd. | 800 | 39,722 | ||||||
Kirin Holdings Co. Ltd. | 29,638 | 670,464 | ||||||
Molson Coors Canada, Inc., Class B | 8,834 | 566,343 | ||||||
Pernod Ricard SA | 6,889 | 1,199,380 | ||||||
Remy Cointreau SA | 580 | 77,221 | ||||||
Royal Unibrew A/S | 1,210 | 86,641 | ||||||
Sapporo Holdings Ltd.(a) | 1,800 | 36,719 | ||||||
Suntory Beverage & Food Ltd. | 3,000 | 131,986 | ||||||
Takara Holdings, Inc. | 8,600 | 99,918 | ||||||
Treasury Wine Estates Ltd.(a) | 22,908 | 277,329 | ||||||
12,801,348 | ||||||||
Biotechnology – 0.4% | ||||||||
Abcam plc | 10,049 | 170,698 | ||||||
Argenx SE* | 394 | 50,426 | ||||||
BioGaia AB, Class B* | 1,134 | 54,930 | ||||||
Biotest AG (Preference) | 972 | 24,455 | ||||||
Cellectis SA* | 178 | 3,551 | ||||||
CSL Ltd. | 14,276 | 1,995,264 | ||||||
DBV Technologies SA* (a) | 3,440 | 67,119 | ||||||
Galapagos NV* (a) | 1,680 | 192,137 | ||||||
Genmab A/S* | 1,412 | 234,215 | ||||||
Genus plc | 6,007 | 188,884 | ||||||
Grifols SA | 10,458 | 289,960 | ||||||
Grifols SA (Preference), Class B | 5,680 | 109,361 | ||||||
HEALIOS KK* (a) | 1,100 | 18,390 | ||||||
MorphoSys AG* | 1,667 | 165,149 | ||||||
PeptiDream, Inc.* (a) | 2,500 | 134,456 | ||||||
SanBio Co. Ltd.* (a) | 2,200 | 88,691 | ||||||
Swedish Orphan Biovitrum AB* | 6,345 | 115,463 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 95 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
Vitrolife AB* | 4,445 | $ | 93,512 | |||||
3,996,661 | ||||||||
Building Products – 1.1% | ||||||||
AGC, Inc. | 8,000 | 271,874 | ||||||
Aica Kogyo Co. Ltd. | 1,500 | 51,717 | ||||||
Assa Abloy AB, Class B | 30,046 | 640,312 | ||||||
Belimo Holding AG (Registered) | 21 | 110,049 | ||||||
Bunka Shutter Co. Ltd. | 51,500 | 378,245 | ||||||
Central Glass Co. Ltd. | 33,400 | 775,810 | ||||||
Cie de Saint-Gobain | 26,394 | 1,077,886 | ||||||
Daikin Industries Ltd. | 8,900 | 1,126,734 | ||||||
dormakaba Holding AG* | 212 | 159,988 | ||||||
Geberit AG (Registered) | 830 | 348,046 | ||||||
GWA Group Ltd.(a) | 101,841 | 241,564 | ||||||
Inwido AB | 27,931 | 184,066 | ||||||
James Halstead plc | 4,686 | 31,156 | ||||||
Kingspan Group plc | 4,953 | 260,223 | ||||||
Lindab International AB | 63,827 | 718,379 | ||||||
LIXIL Group Corp. | 4,400 | 57,166 | ||||||
Munters Group AB(a) (b) | 28,640 | 148,219 | ||||||
Nibe Industrier AB, Class B | 9,994 | 134,139 | ||||||
Nichias Corp. | 6,500 | 125,010 | ||||||
Nichiha Corp. | 28,600 | 784,494 | ||||||
Nippon Sheet Glass Co. Ltd.(a) | 85,700 | 704,067 | ||||||
Nitto Boseki Co. Ltd.(a) | 26,600 | 552,181 | ||||||
Okabe Co. Ltd. | 38,100 | 347,561 | ||||||
Reliance Worldwide Corp. Ltd.(a) | 52,795 | 181,340 | ||||||
Rockwool International A/S, Class A | 220 | 52,179 | ||||||
Rockwool International A/S, Class B | 402 | 107,294 | ||||||
Sanwa Holdings Corp. | 9,800 | 117,380 | ||||||
Schweiter Technologies AG | 56 | 54,351 | ||||||
Sekisui Jushi Corp. | 11,200 | 216,006 | ||||||
Takara Standard Co. Ltd.(a) | 8,976 | 136,443 | ||||||
Takasago Thermal Engineering Co. Ltd. | 9,100 | 143,639 | ||||||
Tarkett SA | 698 | 16,897 |
Investments | Shares | Value | ||||||
Building Products – (continued) | ||||||||
TOTO Ltd. | 3,900 | $ | 164,229 | |||||
Tyman plc | 207,251 | 688,966 | ||||||
Uponor OYJ | 50,137 | 598,408 | ||||||
11,706,018 | ||||||||
Capital Markets – 2.6% | ||||||||
3i Group plc | 61,835 | 862,943 | ||||||
Amundi SA(b) | 1,440 | 103,364 | ||||||
Anima Holding SpA* (b) | 299,744 | 1,191,183 | ||||||
Ashmore Group plc | 23,895 | 142,982 | ||||||
ASX Ltd. | 2,924 | 153,325 | ||||||
Avanza Bank Holding AB | 6,835 | 54,641 | ||||||
Azimut Holding SpA(a) | 114,693 | 2,313,656 | ||||||
Banca Generali SpA | 1,397 | 39,391 | ||||||
Bolsas y Mercados Espanoles SHMSF SA | 965 | 27,340 | ||||||
Brederode SA* | 9,872 | 685,940 | ||||||
Brewin Dolphin Holdings plc | 40,522 | 172,848 | ||||||
Brookfield Asset Management, Inc., Class A | 29,382 | 1,410,782 | ||||||
Bure Equity AB | 10,080 | 187,036 | ||||||
Burford Capital Ltd. | 10,031 | 213,807 | ||||||
CI Financial Corp. | 21,121 | 302,558 | ||||||
Close Brothers Group plc | 16,594 | 335,741 | ||||||
Credit Suisse Group AG (Registered)* (a) | 132,053 | 1,762,435 | ||||||
Daiwa Securities Group, Inc. | 95,700 | 442,604 | ||||||
Deutsche Bank AG (Registered) | 85,324 | 704,643 | ||||||
Deutsche Boerse AG | 6,227 | 829,755 | ||||||
EFG International AG* | 59,179 | 444,278 | ||||||
Euronext NV(b) | 1,650 | 114,555 | ||||||
Fairfax India Holdings Corp.* (b) | 95,327 | 1,277,382 | ||||||
Fiera Capital Corp. | 35,358 | 327,506 | ||||||
Flow Traders(a) (b) | 3,572 | 102,320 | ||||||
Gimv NV | 14,608 | 877,496 | ||||||
Haitong International Securities Group Ltd.(a) | 93,301 | 33,775 | ||||||
Hargreaves Lansdown plc | 5,061 | 148,912 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 37,858 | 1,312,537 | ||||||
IG Group Holdings plc | 673 | 4,473 |
See Accompanying Notes to the Financial Statements.
96 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
IGM Financial, Inc. | 8,876 | $ | 244,136 | |||||
Intermediate Capital Group plc | 18,758 | 289,045 | ||||||
Investec plc | 18,480 | 116,844 | ||||||
IOOF Holdings Ltd.(a) | 37,120 | 169,564 | ||||||
Jafco Co. Ltd. | 300 | 11,273 | ||||||
Japan Exchange Group, Inc. | 19,600 | 318,176 | ||||||
Julius Baer Group Ltd.* | 4,160 | 200,529 | ||||||
Jupiter Fund Management plc | 4,560 | 22,310 | ||||||
London Stock Exchange Group plc | 9,545 | 623,909 | ||||||
Macquarie Group Ltd. | 10,873 | 1,030,854 | ||||||
Magellan Financial Group Ltd.(a) | 15,106 | 474,309 | ||||||
Man Group plc | 79,920 | 163,158 | ||||||
Marusan Securities Co. Ltd. | 3,500 | 19,798 | ||||||
Mason Group Holdings Ltd.* | 2,078,905 | 33,918 | ||||||
Monex Group, Inc.(a) | 15,400 | 46,736 | ||||||
Natixis SA | 19,440 | 114,335 | ||||||
Nomura Holdings, Inc. | 144,900 | 543,562 | ||||||
Okasan Securities Group, Inc. | 29,600 | 107,902 | ||||||
Partners Group Holding AG | 581 | 437,660 | ||||||
Pendal Group Ltd.(a) | 6,964 | 44,752 | ||||||
Perpetual Ltd.(a) | 6,880 | 198,155 | ||||||
Platinum Asset Management Ltd. | 31,440 | 110,203 | ||||||
Quilter plc(b) | 168,573 | 324,322 | ||||||
Rathbone Brothers plc | 1,140 | 37,451 | ||||||
Ratos AB, Class B(a) | 207,417 | 470,391 | ||||||
Rothschild & Co. | 6,972 | 239,484 | ||||||
Sanne Group plc | 13,604 | 111,020 | ||||||
SBI Holdings, Inc. | 11,200 | 238,632 | ||||||
Schroders plc | 960 | 39,635 | ||||||
Schroders plc(Non-Voting) | 4,377 | 137,802 | ||||||
Sparx Group Co. Ltd.(a) | 56,700 | 121,673 | ||||||
St James’s Place plc | 12,720 | 185,972 | ||||||
TMX Group Ltd. | 1,545 | 98,153 | ||||||
Tokai Tokyo Financial Holdings, Inc. | 37,200 | 122,914 | ||||||
TP ICAP plc | 5,817 | 21,324 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
UBS Group AG (Registered)* | 215,468 | $ | 2,889,470 | |||||
Value Partners Group Ltd.(a) | 8,000 | 6,016 | ||||||
Vontobel Holding AG (Registered) | 339 | 19,977 | ||||||
Vostok New Ventures Ltd., SDR* (a) | 6,661 | 38,886 | ||||||
VZ Holding AG | 57 | 13,928 | ||||||
Yunfeng Financial Group Ltd.* | 136,000 | 85,635 | ||||||
27,104,021 | ||||||||
Chemicals – 3.0% | ||||||||
ADEKA Corp. | 4,200 | 62,788 | ||||||
Air Liquide SA(a) | 12,502 | 1,661,003 | ||||||
Air Water, Inc. | 6,000 | 91,152 | ||||||
Akzo Nobel NV(a) | 6,270 | 531,928 | ||||||
Arkema SA | 4,980 | 510,446 | ||||||
Asahi Kasei Corp. | 53,300 | 546,998 | ||||||
BASF SE | 50,962 | 4,140,130 | ||||||
Borregaard ASA | 6,375 | 64,542 | ||||||
Chemtrade Logistics Income Fund | 14,560 | 94,707 | ||||||
Chr Hansen Holding A/S | 2,988 | 304,557 | ||||||
Chugoku Marine Paints Ltd. | 26,700 | 251,717 | ||||||
CI Takiron Corp. | 65,200 | 392,810 | ||||||
Clariant AG (Registered)* | 12,893 | 264,945 | ||||||
Corbion NV | 3,198 | 102,144 | ||||||
Covestro AG(b) | 7,304 | 399,048 | ||||||
Croda International plc | 4,780 | 322,879 | ||||||
Daicel Corp. | 15,700 | 175,079 | ||||||
Dainichiseika Color & Chemicals Manufacturing Co. Ltd. | 16,600 | 481,419 | ||||||
Denka Co. Ltd. | 11,000 | 329,877 | ||||||
DIC Corp. | 2,899 | 84,725 | ||||||
DuluxGroup Ltd. | 12,466 | 85,548 | ||||||
Elementis plc | 9,933 | 21,042 | ||||||
Elkem ASA* (b) | 28,160 | 115,929 | ||||||
EMS-Chemie Holding AG (Registered)(a) | 449 | 271,868 | ||||||
Evonik Industries AG | 4,000 | 119,063 | ||||||
FUCHS PETROLUB SE | 3,256 | 129,539 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 97 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
FUCHS PETROLUB SE (Preference) | 2,151 | $ | 93,484 | |||||
Fujimori Kogyo Co. Ltd. | 12,000 | 351,246 | ||||||
Fuso Chemical Co. Ltd.(a) | 1,100 | 19,556 | ||||||
Givaudan SA (Registered) | 249 | 644,859 | ||||||
Hexpol AB | 5,784 | 45,022 | ||||||
Incitec Pivot Ltd. | 54,091 | 128,302 | ||||||
Ishihara Sangyo Kaisha Ltd. | 40,100 | 445,736 | ||||||
Israel Chemicals Ltd. | 29,862 | 157,976 | ||||||
Israel Corp. Ltd. (The)* | 243 | 58,459 | ||||||
JCU Corp. | 8,100 | 137,018 | ||||||
Johnson Matthey plc | 3,360 | 146,169 | ||||||
JSP Corp. | 18,900 | 394,715 | ||||||
JSR Corp. | 8,300 | 125,795 | ||||||
K+S AG (Registered) | 714 | 14,467 | ||||||
Kaneka Corp. | 4,400 | 169,086 | ||||||
Kansai Paint Co. Ltd. | 6,100 | 115,838 | ||||||
Kanto Denka Kogyo Co. Ltd. | 35,600 | 264,663 | ||||||
KH Neochem Co. Ltd. | 9,800 | 283,771 | ||||||
Koninklijke DSM NV | 5,229 | 596,855 | ||||||
Konishi Co. Ltd.(a) | 20,300 | 311,494 | ||||||
Kumiai Chemical Industry Co. Ltd.(a) | 29,948 | 218,879 | ||||||
Kuraray Co. Ltd. | 26,400 | 352,474 | ||||||
Kureha Corp. | 3,800 | 226,550 | ||||||
LANXESS AG | 4,857 | 280,327 | ||||||
Lenzing AG(a) | 485 | 54,408 | ||||||
Lintec Corp. | 1,800 | 38,772 | ||||||
Methanex Corp. | 4,897 | 267,347 | ||||||
Mitsubishi Chemical Holdings Corp. | 92,000 | 651,827 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 17,600 | 262,321 | ||||||
Mitsui Chemicals, Inc. | 17,000 | 414,869 | ||||||
Moriroku Holdings Co. Ltd. | 8,400 | 196,622 | ||||||
Nihon Parkerizing Co. Ltd. | 7,600 | 98,740 | ||||||
Nippon Kayaku Co. Ltd. | 15,100 | 176,794 | ||||||
Nippon Paint Holdings Co. Ltd. | 5,200 | 196,795 | ||||||
Nippon Shokubai Co. Ltd. | 400 | 27,654 | ||||||
Nippon Soda Co. Ltd. | 28,139 | 774,375 | ||||||
Nissan Chemical Corp. | 3,800 | 168,207 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Nitto Denko Corp. | 3,300 | $ | 177,481 | |||||
NOF Corp. | 2,000 | 71,021 | ||||||
Novozymes A/S, Class B | 7,221 | 336,246 | ||||||
Nufarm Ltd.(a) | 9,690 | 34,511 | ||||||
Nutrien Ltd. | 19,339 | 1,044,582 | ||||||
OCI NV* | 1,318 | 38,183 | ||||||
Okamoto Industries, Inc. | 600 | 30,976 | ||||||
Orica Ltd. | 4,722 | 61,819 | ||||||
Osaka Soda Co. Ltd. | 17,400 | 419,162 | ||||||
Sakata INX Corp. | 33,600 | 304,399 | ||||||
Sanyo Chemical Industries Ltd. | 11,700 | 589,333 | ||||||
Scapa Group plc | 24,480 | 126,058 | ||||||
Shikoku Chemicals Corp. | 10,000 | 107,744 | ||||||
Shin-Etsu Chemical Co. Ltd. | 13,100 | 1,226,783 | ||||||
Shin-Etsu Polymer Co. Ltd. | 23,200 | 176,018 | ||||||
Showa Denko KK | 10,000 | 338,047 | ||||||
Sika AG (Registered)(a) | 4,980 | 762,395 | ||||||
Sirius Minerals plc* (a) | 234,473 | 53,248 | ||||||
SOL SpA | 3,009 | 40,466 | ||||||
Solvay SA | 2,822 | 338,874 | ||||||
Sumitomo Bakelite Co. Ltd. | 3,000 | 116,633 | ||||||
Sumitomo Chemical Co. Ltd. | 69,400 | 343,962 | ||||||
Sumitomo Seika Chemicals Co. Ltd. | 8,300 | 320,822 | ||||||
Symrise AG | 3,735 | 358,724 | ||||||
Synthomer plc | 37,452 | 204,574 | ||||||
T Hasegawa Co. Ltd. | 900 | 14,481 | ||||||
Taiyo Holdings Co. Ltd. | 900 | 31,556 | ||||||
Taiyo Nippon Sanso Corp.(a) | 7,200 | 119,531 | ||||||
Tayca Corp.(a) | 8,100 | 182,255 | ||||||
Teijin Ltd. | 8,200 | 140,403 | ||||||
Tenma Corp. | 8,100 | 149,964 | ||||||
Tessenderlo Group SA* | 779 | 28,111 | ||||||
Toagosei Co. Ltd. | 6,900 | 75,025 | ||||||
Tokai Carbon Co. Ltd.(a) | 11,000 | 126,321 | ||||||
Tokuyama Corp. | 10,900 | 269,136 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 700 | 22,249 | ||||||
Toray Industries, Inc. | 61,400 | 417,878 | ||||||
Tosoh Corp. | 13,800 | 221,172 | ||||||
Toyo Ink SC Holdings Co. Ltd. | 1,600 | 38,199 |
See Accompanying Notes to the Financial Statements.
98 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Ube Industries Ltd. | 9,400 | $ | 200,027 | |||||
Umicore SA(a) | 5,810 | 224,639 | ||||||
Victrex plc | 3,740 | 118,576 | ||||||
Wacker Chemie AG | 1,924 | 168,272 | ||||||
Yara International ASA | 6,474 | 291,302 | ||||||
Zeon Corp.(a) | 8,000 | 77,791 | ||||||
31,006,304 | ||||||||
Commercial Services & Supplies – 0.8% | ||||||||
Babcock International Group plc | 12,240 | 83,773 | ||||||
Bell System24 Holdings, Inc. | 5,600 | 81,605 | ||||||
Biffa plc(b) | 52,800 | 163,478 | ||||||
Bilfinger SE | 4,914 | 181,184 | ||||||
Boyd Group Income Fund | 300 | 32,826 | ||||||
Brambles Ltd. | 66,624 | 565,064 | ||||||
Bravida Holding AB(b) | 12,702 | 111,096 | ||||||
CITIC Envirotech Ltd. | 406,500 | 119,453 | ||||||
Cleanaway Waste Management Ltd. | 120,181 | 190,326 | ||||||
Coor Service Management Holding AB* (b) | 16,960 | 146,465 | ||||||
Dai Nippon Printing Co. Ltd. | 3,900 | 92,199 | ||||||
Daiseki Co. Ltd. | 2,500 | 68,350 | ||||||
Derichebourg SA | 40,931 | 177,981 | ||||||
Downer EDI Ltd. | 46,978 | 255,927 | ||||||
Duskin Co. Ltd. | 5,700 | 140,127 | ||||||
Edenred | 5,894 | 277,493 | ||||||
Elis SA(a) | 8,013 | 142,785 | ||||||
Elis SA – XLON | 4,520 | 80,264 | ||||||
G4S plc | 130,642 | 368,213 | ||||||
HomeServe plc | 11,489 | 162,507 | ||||||
Intrum AB(a) | 8,300 | 210,931 | ||||||
ISS A/S | 1,600 | 49,717 | ||||||
IWG plc | 39,525 | 175,140 | ||||||
Kokuyo Co. Ltd. | 5,600 | 70,996 | ||||||
Lassila & Tikanoja OYJ | 960 | 15,557 | ||||||
Loomis AB, Class B | 2,271 | 83,847 | ||||||
Mitie Group plc(a) | 391,843 | 669,693 | ||||||
Mitsubishi Pencil Co. Ltd. | 1,800 | 36,897 | ||||||
Nippon Kanzai Co. Ltd. | 1,300 | 23,531 | ||||||
Okamura Corp. | 17,600 | 176,988 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – (continued) | ||||||||
Park24 Co. Ltd. | 2,200 | $ | 46,084 | |||||
PayPoint plc | 3,648 | 47,843 | ||||||
Pilot Corp. | 500 | 20,651 | ||||||
Prestige International, Inc. | 2,000 | 28,534 | ||||||
Realord Group Holdings Ltd.* | 32,000 | 19,497 | ||||||
Relia, Inc. | 2,100 | 22,117 | ||||||
Rentokil Initial plc | 60,756 | 308,898 | ||||||
Ritchie Bros Auctioneers, Inc. | 4,230 | 146,597 | ||||||
Sato Holdings Corp. | 1,100 | 26,637 | ||||||
Secom Co. Ltd. | 5,400 | 452,752 | ||||||
Securitas AB, Class B | 7,047 | 123,049 | ||||||
Serco Group plc* | 57,046 | 92,663 | ||||||
SmartGroup Corp. Ltd. | 918 | 5,479 | ||||||
Societe BIC SA | 2,016 | 173,630 | ||||||
Sohgo Security Services Co. Ltd. | 2,900 | 129,019 | ||||||
Tomra Systems ASA* | 2,590 | 77,812 | ||||||
Toppan Printing Co. Ltd. | 15,000 | 242,559 | ||||||
Transcontinental, Inc., Class A | 58,183 | 696,362 | ||||||
Waste Connections, Inc. | 9,545 | 882,267 | ||||||
8,496,863 | ||||||||
Communications Equipment – 0.2% | ||||||||
Nokia OYJ | 190,402 | 998,421 | ||||||
Telefonaktiebolaget LM Ericsson, Class A | 15,545 | 154,358 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 75,707 | 748,565 | ||||||
1,901,344 | ||||||||
Construction & Engineering – 2.3% | ||||||||
ACS Actividades de Construccion y Servicios SA | 17,999 | 825,619 | ||||||
Aecon Group, Inc. | 294 | 4,185 | ||||||
AF Gruppen ASA | 2,860 | 50,767 | ||||||
Arcadis NV(a) | 60,233 | 1,136,078 | ||||||
Badger Daylighting Ltd. | 2,812 | 94,465 | ||||||
Balfour Beatty plc | 31,842 | 104,275 | ||||||
Boskalis Westminster(a) | 218 | 5,959 | ||||||
Bouygues SA(a) | 7,968 | 299,503 | ||||||
Chiyoda Corp.(a) | 4,000 | 12,642 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 99 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Cie d’Entreprises CFE | 282 | $ | 28,033 | |||||
CIMIC Group Ltd. | 5,661 | 201,576 | ||||||
COMSYS Holdings Corp.(a) | 4,300 | 112,620 | ||||||
Dai-Dan Co. Ltd. | 25,000 | 553,760 | ||||||
Eiffage SA | 2,739 | 285,780 | ||||||
Elecnor SA | 39,425 | 530,203 | ||||||
Electra Ltd. | 996 | 272,469 | ||||||
Ferrovial SA | 19,090 | 469,816 | ||||||
FLSmidth & Co. A/S(a) | 2,798 | 140,285 | ||||||
Fomento de Construcciones y Contratas SA* | 3,420 | 41,854 | ||||||
Galliford Try plc(a) | 84,290 | 595,575 | ||||||
Gold-Finance Holdings Ltd.* (b) | 89,827 | 1,798 | ||||||
Hazama Ando Corp. | 33,200 | 222,675 | ||||||
Hibiya Engineering Ltd.(a) | 18,200 | 303,456 | ||||||
HOCHTIEF AG | 442 | 65,881 | ||||||
Hong Kong International Construction Investment Management Group Co. Ltd. | 162,000 | 61,328 | ||||||
Implenia AG (Registered)(a) | 9,877 | 310,365 | ||||||
JGC Corp. | 5,400 | 76,994 | ||||||
John Laing Group plc(b) | 418,735 | 2,098,378 | ||||||
Kajima Corp. | 20,100 | 296,875 | ||||||
Kandenko Co. Ltd. | 3,000 | 25,185 | ||||||
Kier Group plc(a) | 136,487 | 667,954 | ||||||
Kinden Corp. | 7,500 | 120,067 | ||||||
Koninklijke BAM Groep NV | 240,119 | 1,167,900 | ||||||
Koninklijke Volkerwessels NV | 18,680 | 399,015 | ||||||
Kumagai Gumi Co. Ltd. | 6,500 | 189,966 | ||||||
Kyowa Exeo Corp. | 3,900 | 106,101 | ||||||
Kyudenko Corp. | 2,100 | 59,582 | ||||||
Maeda Corp. | 8,100 | 80,145 | ||||||
Maeda Road Construction Co. Ltd. | 3,000 | 59,259 | ||||||
Maire Tecnimont SpA* (a) | 79,016 | 281,776 | ||||||
Meisei Industrial Co. Ltd. | 42,000 | 280,943 | ||||||
Mirait Holdings Corp.(a) | 13,700 | 200,626 | ||||||
Monadelphous Group Ltd.(a) | 9,080 | 121,109 | ||||||
NCC AB, Class B | 246 | 4,063 | ||||||
Nippo Corp. | 2,000 | 40,512 |
Investments | Shares | Value | ||||||
Construction & Engineering – (continued) | ||||||||
Nippon Densetsu Kogyo Co. Ltd. | 1,700 | $ | 36,541 | |||||
Nishimatsu Construction Co. Ltd. | 2,600 | 56,144 | ||||||
Obayashi Corp. | 33,300 | 325,600 | ||||||
Okumura Corp. | 3,000 | 96,700 | ||||||
Peab AB | 3,999 | 36,512 | ||||||
Penta-Ocean Construction Co. Ltd.(a) | 17,100 | 78,149 | ||||||
Porr Ag(a) | 6,880 | 182,737 | ||||||
Raito Kogyo Co. Ltd.(a) | 41,600 | 534,497 | ||||||
RCR Tomlinson Ltd.* (d) | 28,512 | 17,459 | ||||||
Sacyr SA(a) | 270,581 | 661,670 | ||||||
Salini Impregilo SpA(a) | 225,926 | 470,943 | ||||||
Sanki Engineering Co. Ltd. | 34,800 | 379,324 | ||||||
Shapir Engineering and Industry Ltd. | 18,954 | 68,215 | ||||||
Shikun & Binui Ltd.* | 133,049 | 343,614 | ||||||
Shimizu Corp. | 31,500 | 268,404 | ||||||
Shinnihon Corp. | 16,200 | 138,618 | ||||||
SHO-BOND Holdings Co. Ltd. | 600 | 41,158 | ||||||
Skanska AB, Class B | 19,951 | 346,899 | ||||||
SNC-Lavalin Group, Inc. | 6,723 | 166,926 | ||||||
Sumitomo Densetsu Co. Ltd. | 16,600 | 283,635 | ||||||
Sumitomo Mitsui Construction Co. Ltd. | 142,740 | 927,890 | ||||||
Sweco AB, Class B | 3,381 | 86,207 | ||||||
Taihei Dengyo Kaisha Ltd.(a) | 16,800 | 369,713 | ||||||
Taikisha Ltd.(a) | 4,500 | 135,556 | ||||||
Taisei Corp. | 11,800 | 516,498 | ||||||
Takamatsu Construction Group Co. Ltd. | 13,700 | 294,235 | ||||||
Toda Corp.(a) | 25,000 | 153,760 | ||||||
Toenec Corp. | 8,300 | 229,531 | ||||||
Tokyu Construction Co. Ltd. | 67,200 | 482,090 | ||||||
Toshiba Plant Systems & Services Corp. | 3,800 | 67,965 | ||||||
Totetsu Kogyo Co. Ltd. | 1,800 | 52,606 | ||||||
Veidekke ASA(a) | 14,056 | 156,774 | ||||||
Vinci SA | 14,691 | 1,482,108 | ||||||
WSP Global, Inc. | 1,210 | 65,069 | ||||||
YIT OYJ | 154,380 | 945,520 |
See Accompanying Notes to the Financial Statements.
100 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Yokogawa Bridge Holdings Corp. | 33,600 | $ | 543,332 | |||||
Yurtec Corp. | 33,400 | 234,812 | ||||||
24,284,828 | ||||||||
Construction Materials – 0.6% | ||||||||
Adelaide Brighton Ltd. | 8,796 | 26,807 | ||||||
Boral Ltd. | 6,400 | 21,848 | ||||||
Brickworks Ltd. | 9,360 | 107,846 | ||||||
Buzzi Unicem SpA(a) | 5,653 | 125,629 | ||||||
Buzzi Unicem SpA (Retirement Savings Plan) | 1,925 | 29,297 | ||||||
Cementir Holding SpA | 59,211 | 429,335 | ||||||
CRH plc | 30,959 | 1,033,208 | ||||||
CSR Ltd.(a) | 544,307 | 1,363,873 | ||||||
Fletcher Building Ltd. | 17,649 | 60,734 | ||||||
HeidelbergCement AG | 9,379 | 756,795 | ||||||
Ibstock plc(b) | 9,600 | 32,689 | ||||||
Imerys SA | 33 | 1,756 | ||||||
James Hardie Industries plc, CHDI(a) | 7,840 | 106,391 | ||||||
Krosaki Harima Corp. | 2,700 | 141,818 | ||||||
LafargeHolcim Ltd. (Registered)* | 17,098 | 878,894 | ||||||
Mitani Sekisan Co. Ltd. | 8,400 | 228,903 | ||||||
Rhi Magnesita NV | 2,800 | 181,124 | ||||||
Sumitomo Osaka Cement Co. Ltd.(a) | 1,700 | 68,992 | ||||||
Taiheiyo Cement Corp. | 8,400 | 269,253 | ||||||
Wienerberger AG | 3,846 | 88,187 | ||||||
5,953,379 | ||||||||
Consumer Finance – 0.5% | ||||||||
Acom Co. Ltd. | 58,100 | 203,448 | ||||||
AEON Financial Service Co. Ltd. | 4,800 | 99,081 | ||||||
Aiful Corp.* | 2,100 | 4,902 | ||||||
Allied Properties HK Ltd. | 1,738,000 | 398,756 | ||||||
Amigo Holdings plc(a) (b) | 24,080 | 78,166 | ||||||
B2Holding ASA(a) | 339,858 | 523,493 | ||||||
Cembra Money Bank AG | 3,237 | 300,352 | ||||||
Credit Corp. Group Ltd.(a) | 6,029 | 101,208 |
Investments | Shares | Value | ||||||
Consumer Finance – (continued) | ||||||||
Credit Saison Co. Ltd. | 16,800 | $ | 213,592 | |||||
Eclipx Group Ltd.(a) | 222,131 | 158,692 | ||||||
Hitachi Capital Corp. | 9,700 | 224,265 | ||||||
Hoist Finance AB(a) (b) | 52,456 | 237,704 | ||||||
Hong Leong Finance Ltd. | 207,500 | 423,780 | ||||||
J Trust Co. Ltd.(a) | 36,100 | 118,632 | ||||||
Jaccs Co. Ltd.(a) | 23,000 | 397,944 | ||||||
Provident Financial plc* (a) | 235,554 | 1,630,595 | ||||||
Resurs Holding AB(b) | 77,868 | 481,617 | ||||||
Sun Hung Kai & Co. Ltd. | 105,996 | 52,826 | ||||||
5,649,053 | ||||||||
Containers & Packaging – 0.4% | ||||||||
Amcor Ltd. | 25,647 | 289,368 | ||||||
BillerudKorsnas AB | 12,245 | 166,284 | ||||||
Cascades, Inc. | 67,313 | 401,816 | ||||||
CCL Industries, Inc., Class B | 2,960 | 125,754 | ||||||
DS Smith plc | 49,385 | 229,839 | ||||||
FP Corp.(a) | 600 | 36,364 | ||||||
Fuji Seal International, Inc. | 2,000 | 69,675 | ||||||
Huhtamaki OYJ | 2,051 | 78,174 | ||||||
Intertape Polymer Group, Inc. | 57,934 | 801,911 | ||||||
Mayr Melnhof Karton AG | 275 | 35,565 | ||||||
Orora Ltd. | 44,370 | 94,626 | ||||||
Pack Corp. (The) | 1,200 | 38,572 | ||||||
Pact Group Holdings Ltd.(a) | 166,952 | 309,049 | ||||||
Rengo Co. Ltd. | 16,800 | 147,372 | ||||||
RPC Group plc | 34,970 | 359,694 | ||||||
Smurfit Kappa Group plc | 8,964 | 262,501 | ||||||
Toyo Seikan Group Holdings Ltd. | 5,600 | 111,573 | ||||||
Vidrala SA | 1,239 | 116,222 | ||||||
Winpak Ltd. | 4,494 | 147,462 | ||||||
3,821,821 | ||||||||
Distributors – 0.1% | ||||||||
Arata Corp.(a) | 11,800 | 421,145 | ||||||
Bapcor Ltd.(a) | 25,156 | 100,747 | ||||||
Canon Marketing Japan, Inc. | 3,700 | 79,797 | ||||||
Doshisha Co. Ltd. | 1,800 | 28,703 | ||||||
Inchcape plc | 4,530 | 36,290 | ||||||
Jardine Cycle & Carriage Ltd. | 10,622 | 277,177 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 101 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Distributors – (continued) | ||||||||
PALTAC Corp. | 800 | $ | 43,888 | |||||
Uni-Select, Inc. | 43,990 | 467,631 | ||||||
1,455,378 | ||||||||
Diversified Consumer Services – 0.2% | ||||||||
AA plc(a) | 496,723 | 480,160 | ||||||
AcadeMedia AB* (a) (b) | 51,709 | 293,715 | ||||||
Benesse Holdings, Inc. | 2,000 | 55,039 | ||||||
G8 Education Ltd.(a) | 414,917 | 890,720 | ||||||
IDP Education Ltd.(a) | 6,853 | 75,246 | ||||||
InvoCare Ltd.(a) | 4,344 | 46,811 | ||||||
1,841,691 | ||||||||
Diversified Financial Services – 1.0% | ||||||||
Ackermans & van Haaren NV | 784 | 125,995 | ||||||
Aker ASA, Class A | 760 | 51,853 | ||||||
AMP Ltd.(a) | 117,623 | 187,931 | ||||||
Banca Farmafactoring SpA(b) | 58,764 | 346,407 | ||||||
Banca IFIS SpA(a) | 15,521 | 267,352 | ||||||
Banca Mediolanum SpA(a) | 28,463 | 208,776 | ||||||
Banque Nationale de Belgique | 123 | 350,129 | ||||||
Cerved Group SpA | 10,505 | 102,425 | ||||||
Challenger Ltd. | 11,680 | 67,576 | ||||||
doBank SpA(b) | 26,394 | 371,522 | ||||||
ECN Capital Corp. | 210,189 | 670,317 | ||||||
Element Fleet Management Corp. | 37,931 | 234,320 | ||||||
Eurazeo SE* | 4,233 | 331,837 | ||||||
EXOR NV | 5,312 | 353,379 | ||||||
FFP | 1,130 | 130,185 | ||||||
First Pacific Co. Ltd. | 320,000 | 132,562 | ||||||
Fuyo General Lease Co. Ltd. | 700 | 34,756 | ||||||
GRENKE AG | 495 | 52,507 | ||||||
Groupe Bruxelles Lambert SA | 1,760 | 168,091 | ||||||
HAL Trust | 1,802 | 277,076 | ||||||
IBJ Leasing Co. Ltd. | 30,538 | 714,815 | ||||||
Industrivarden AB, Class A | 8,378 | 193,702 | ||||||
Industrivarden AB, Class C | 250 | 5,617 |
Investments | Shares | Value | ||||||
Diversified Financial Services – (continued) | ||||||||
Investor AB, Class A | 2,092 | $ | 99,244 | |||||
Investor AB, Class B(a) | 18,260 | 869,515 | ||||||
Japan Securities Finance Co. Ltd. | 41,500 | 214,626 | ||||||
KBC Ancora | 1,377 | 70,061 | ||||||
Kinnevik AB, Class A(a) | 7,802 | 229,379 | ||||||
Kinnevik AB, Class B | 3,760 | 109,358 | ||||||
L E Lundbergforetagen AB, Class B | 1,348 | 46,026 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 21,500 | 108,875 | ||||||
Onex Corp.(a) | 1,520 | 87,808 | ||||||
ORIX Corp. | 67,900 | 958,068 | ||||||
Pargesa Holding SA | 1,265 | 99,561 | ||||||
Plus500 Ltd. | 83,996 | 578,167 | ||||||
Ricoh Leasing Co. Ltd. | 19,600 | 570,182 | ||||||
Sofina SA | 330 | 67,827 | ||||||
SRH NV* ‡ (d) | 2,857 | — | ||||||
Standard Life Aberdeen plc | 96,549 | 351,041 | ||||||
Tokyo Century Corp. | 600 | 27,583 | ||||||
Wendel SA | 1,377 | 190,431 | ||||||
Zenkoku Hosho Co. Ltd. | 1,600 | 55,883 | ||||||
10,112,765 | ||||||||
Diversified Telecommunication Services – 1.4% | ||||||||
BCE, Inc. | 5,850 | 260,667 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 3,283 | 2,243 | ||||||
BT Group plc | 440,564 | 1,315,529 | ||||||
Cellnex Telecom SA(b) | 11,134 | 342,143 | ||||||
Chorus Ltd.(a) | 38,130 | 152,319 | ||||||
Deutsche Telekom AG (Registered) | 97,940 | 1,636,981 | ||||||
Elisa OYJ | 5,434 | 230,380 | ||||||
Euskaltel SA(b) | 24,537 | 230,438 | ||||||
Gamma Communications plc | 1,701 | 24,393 | ||||||
HKBN Ltd. | 51,500 | 92,164 | ||||||
HKT Trust & HKT Ltd. | 174,400 | 270,312 | ||||||
Iliad SA(a) | 1,200 | 121,977 | ||||||
Infrastrutture Wireless Italiane | 5,179 | 42,834 | ||||||
Inmarsat plc | 3,680 | 26,156 |
See Accompanying Notes to the Financial Statements.
102 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
Internet Initiative Japan, Inc. | 2,300 | $ | 46,320 | |||||
Koninklijke KPN NV | 165,860 | 508,566 | ||||||
Nippon Telegraph & Telephone Corp. | 33,700 | 1,396,716 | ||||||
Orange SA | 114,457 | 1,791,318 | ||||||
PCCW Ltd. | 206,035 | 124,219 | ||||||
Proximus SADP | 11,330 | 316,803 | ||||||
Singapore Telecommunications Ltd. | 199,200 | 463,902 | ||||||
Spark New Zealand Ltd. | 76,951 | 188,339 | ||||||
SpeedCast International Ltd. | 65,120 | 177,839 | ||||||
Sunrise Communications Group AG* (a) (b) | 2,897 | 192,328 | ||||||
Swisscom AG (Registered)(a) | 485 | 225,937 | ||||||
TalkTalk Telecom Group plc(a) | 126,474 | 204,778 | ||||||
Telecom Italia SpA* (a) | 381,195 | 213,004 | ||||||
Telecom Italia SpA (Retirement Savings Plan) | 372,018 | 193,826 | ||||||
Telefonica Deutschland Holding AG | 14,053 | 45,610 | ||||||
Telefonica SA | 230,846 | 1,922,726 | ||||||
Telekom Austria AG* | 1,426 | 10,675 | ||||||
Telenor ASA | 23,655 | 473,784 | ||||||
Telia Co. AB | 93,873 | 399,317 | ||||||
Telstra Corp. Ltd. | 81,520 | 193,937 | ||||||
TELUS Corp. | 8,715 | 319,589 | ||||||
United Internet AG (Registered) | 6,061 | 242,698 | ||||||
Vocus Group Ltd.* | 70,640 | 194,405 | ||||||
14,595,172 | ||||||||
Electric Utilities – 1.3% | ||||||||
Acciona SA(a) | 1,497 | 173,305 | ||||||
Alpiq Holding AG (Registered)* | 1,915 | 132,678 | ||||||
AusNet Services | 147,818 | 184,674 | ||||||
BKW AG | 1,400 | 89,166 | ||||||
Chubu Electric Power Co., Inc. | 32,300 | 468,658 | ||||||
Chugoku Electric Power Co., Inc. (The)(a) | 4,206 | 50,113 |
Investments | Shares | Value | ||||||
Electric Utilities – (continued) | ||||||||
CK Infrastructure Holdings Ltd. | 24,000 | $ | 194,866 | |||||
CLP Holdings Ltd. | 64,000 | 725,623 | ||||||
Contact Energy Ltd. | 20,140 | 90,124 | ||||||
EDP – Energias de Portugal SA* | 141,017 | 534,010 | ||||||
Electricite de France SA(a) | 14,872 | 214,005 | ||||||
Elia System Operator SA/NV | 1,089 | 73,349 | ||||||
Emera, Inc.(a) | 5,346 | 199,938 | ||||||
Endesa SA | 14,774 | 367,736 | ||||||
Enel SpA | 394,614 | 2,493,813 | ||||||
EVN AG | 2,240 | 33,388 | ||||||
Fortis, Inc. | 10,644 | 391,831 | ||||||
Fortum OYJ | 11,537 | 243,592 | ||||||
Genesis Energy Ltd. | 13,435 | 27,372 | ||||||
HK Electric Investments & HK Electric Investments Ltd.(b) | 174,000 | 170,332 | ||||||
Hokkaido Electric Power Co., Inc. | 10,100 | 56,496 | ||||||
Hokuriku Electric Power Co. | 15,000 | 111,246 | ||||||
Hydro One Ltd.(b) | 15,272 | 246,132 | ||||||
Iberdrola SA | 179,388 | 1,628,023 | ||||||
Infratil Ltd. | 37,798 | 109,400 | ||||||
Kansai Electric Power Co., Inc. (The) | 45,600 | 550,885 | ||||||
Kyushu Electric Power Co., Inc.(a) | 33,200 | 321,045 | ||||||
Mercury NZ Ltd. | 17,270 | 42,614 | ||||||
Okinawa Electric Power Co., Inc. (The) | 11,215 | 185,180 | ||||||
Orsted A/S(b) | 5,810 | 444,451 | ||||||
Power Assets Holdings Ltd. | 57,500 | 400,904 | ||||||
Red Electrica Corp. SA | 10,503 | 217,582 | ||||||
Romande Energie Holding SA (Registered) | 76 | 89,499 | ||||||
Shikoku Electric Power Co., Inc.(a) | 8,600 | 86,637 | ||||||
Spark Infrastructure Group(a) | 1,230 | 1,957 | ||||||
SSE plc | 64,334 | 959,881 | ||||||
Terna Rete Elettrica Nazionale SpA | 59,096 | 353,530 | ||||||
Tohoku Electric Power Co., Inc. | 22,500 | 256,970 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 103 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
Tokyo Electric Power Co. Holdings, Inc.* | 60,515 | $ | 341,220 | |||||
Trustpower Ltd. | 25,928 | 120,002 | ||||||
Verbund AG* | 3,625 | 179,645 | ||||||
13,561,872 | ||||||||
Electrical Equipment – 1.2% | ||||||||
ABB Ltd. (Registered)* (a) | 53,327 | 1,097,416 | ||||||
Daihen Corp.(a) | 16,800 | 469,118 | ||||||
Fagerhult AB* (a) | 3,005 | 25,603 | ||||||
Fuji Electric Co. Ltd. | 4,800 | 169,158 | ||||||
Fujikura Ltd.(a) | 4,700 | 19,328 | ||||||
Furukawa Electric Co. Ltd. | 11,300 | 297,072 | ||||||
Futaba Corp. | 3,400 | 55,072 | ||||||
Huber + Suhner AG (Registered) | 867 | 69,258 | ||||||
Johnson Electric Holdings Ltd. | 40,500 | 95,192 | ||||||
Legrand SA | 9,877 | 725,251 | ||||||
Mabuchi Motor Co. Ltd. | 2,000 | 73,805 | ||||||
Melrose Industries plc | 162,846 | 429,259 | ||||||
Mersen SA | 4,800 | 170,526 | ||||||
Mitsubishi Electric Corp. | 76,600 | 1,088,047 | ||||||
Nexans SA | 30,876 | 1,080,643 | ||||||
Nidec Corp. | 7,755 | 1,099,104 | ||||||
Nippon Carbon Co. Ltd.(a) | 8,400 | 368,054 | ||||||
Nissin Electric Co. Ltd.(a) | 32,000 | 302,545 | ||||||
Nitto Kogyo Corp. | 8,200 | 159,914 | ||||||
Nordex SE* | 21,746 | 351,914 | ||||||
OSRAM Licht AG | 4,338 | 148,230 | ||||||
Prysmian SpA | 9,779 | 188,391 | ||||||
Sanyo Denki Co. Ltd. | 11,500 | 535,892 | ||||||
Schneider Electric SE | 18,426 | 1,558,250 | ||||||
Siemens Gamesa Renewable Energy SA | 8,096 | 145,080 | ||||||
Signify NV(b) | 10,292 | 308,310 | ||||||
Sinfonia Technology Co. Ltd.(a) | 15,800 | 223,576 | ||||||
Somfy SA | 275 | 24,902 | ||||||
TKH Group NV, CVA | 2,194 | 117,826 | ||||||
Ushio, Inc. | 5,900 | 71,409 | ||||||
Vestas Wind Systems A/S | 7,719 | 697,551 | ||||||
12,165,696 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – 1.9% | ||||||||
accesso Technology Group plc* | 3,760 | $ | 41,665 | |||||
Alps Alpine Co. Ltd. | 11,748 | 247,565 | ||||||
ALSO Holding AG (Registered)* | 1,120 | 140,687 | ||||||
Amano Corp. | 2,600 | 67,466 | ||||||
Anritsu Corp.(a) | 6,200 | 107,216 | ||||||
AT&S Austria Technologie & Systemtechnik AG(a) | 26,975 | 535,691 | ||||||
Azbil Corp. | 3,000 | 71,838 | ||||||
Barco NV(a) | 440 | 78,108 | ||||||
Canon Electronics, Inc. | 13,200 | 217,244 | ||||||
Carel Industries SpA* (b) | 12,720 | 151,962 | ||||||
Celestica, Inc.* | 94,205 | 668,791 | ||||||
Citizen Watch Co. Ltd. | 32,000 | 179,286 | ||||||
CMK Corp.* (a) | 58,100 | 400,636 | ||||||
Comet Holding AG (Registered)(a) | 1,120 | 111,011 | ||||||
CONEXIO Corp. | 18,800 | 232,436 | ||||||
Daiwabo Holdings Co. Ltd. | 16,600 | 845,091 | ||||||
Datalogic SpA | 535 | 12,651 | ||||||
Dexerials Corp. | 38,600 | 243,297 | ||||||
Electrocomponents plc | 24,158 | 203,322 | ||||||
Elematec Corp. | 2,500 | 45,859 | ||||||
Evertz Technologies Ltd. | 1,712 | 21,585 | ||||||
FIH Mobile Ltd.* (a) | 2,361,000 | 352,101 | ||||||
Halma plc | 17,679 | 414,735 | ||||||
Hamamatsu Photonics KK | 3,400 | 137,526 | ||||||
Hexagon AB, Class B | 7,221 | 393,453 | ||||||
Hirose Electric Co. Ltd. | 782 | 90,294 | ||||||
Hitachi High-Technologies Corp. | 1,700 | 75,556 | ||||||
Hitachi Ltd. | 48,200 | 1,596,496 | ||||||
Horiba Ltd. | 800 | 48,126 | ||||||
Hosiden Corp. | 35,600 | 336,901 | ||||||
Inficon Holding AG (Registered) | 110 | 61,801 | ||||||
Ingenico Group SA | 440 | 37,062 | ||||||
Iriso Electronics Co. Ltd.(a) | 1,200 | 62,061 | ||||||
Japan Aviation Electronics Industry Ltd. | 2,044 | 32,924 | ||||||
Japan Display, Inc.* (a) | 454,500 | 318,303 | ||||||
Jenoptik AG | 2,585 | 101,975 |
See Accompanying Notes to the Financial Statements.
104 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Kaga Electronics Co. Ltd.(a) | 10,300 | $ | 189,400 | |||||
Keyence Corp. | 2,700 | 1,675,636 | ||||||
Koa Corp. | 8,100 | 111,127 | ||||||
Kyocera Corp. | 11,900 | 768,224 | ||||||
Lagercrantz Group AB, Class B | 1,944 | 23,638 | ||||||
Landis+Gyr Group AG* | 2,640 | 184,204 | ||||||
LEM Holding SA (Registered) | 27 | 36,936 | ||||||
Macnica Fuji Electronics Holdings, Inc.(a) | 32,700 | 470,645 | ||||||
Meiko Electronics Co. Ltd. | 16,800 | 326,120 | ||||||
Murata Manufacturing Co. Ltd. | 19,200 | 1,027,448 | ||||||
Mycronic AB | 3,001 | 41,984 | ||||||
Nichicon Corp. | 72,300 | 701,740 | ||||||
Nippon Ceramic Co. Ltd. | 900 | 25,495 | ||||||
Nippon Signal Co. Ltd.(a) | 43,000 | 398,052 | ||||||
Nissha Co. Ltd. | 34,900 | 403,916 | ||||||
Nohmi Bosai Ltd. | 10,100 | 181,369 | ||||||
Ohara, Inc.(a) | 8,100 | 101,091 | ||||||
Oki Electric Industry Co. Ltd. | 1,200 | 14,017 | ||||||
Omron Corp. | 8,600 | 459,439 | ||||||
Optex Group Co. Ltd. | 1,000 | 16,682 | ||||||
Renishaw plc | 1,617 | 95,113 | ||||||
Ryosan Co. Ltd.(a) | 18,200 | 489,419 | ||||||
Sanshin Electronics Co. Ltd.(a) | 8,100 | 136,073 | ||||||
Shimadzu Corp. | 7,000 | 186,918 | ||||||
Siix Corp.(a) | 2,028 | 32,339 | ||||||
Smart Metering Systems plc | 19,920 | 128,026 | ||||||
Spectris plc | 3,026 | 108,404 | ||||||
Taiyo Yuden Co. Ltd.(a) | 2,500 | 60,314 | ||||||
Tamura Corp.(a) | 92,400 | 569,126 | ||||||
TDK Corp. | 4,300 | 374,114 | ||||||
Topcon Corp.(a) | 2,200 | 26,568 | ||||||
V Technology Co. Ltd. | 3,200 | 427,816 | ||||||
Venture Corp. Ltd. | 18,100 | 225,652 | ||||||
VSTECS Holdings Ltd. | 668,000 | 366,125 | ||||||
Yaskawa Electric Corp. | 14,800 | 544,162 | ||||||
Yokogawa Electric Corp. | 8,000 | 166,501 | ||||||
19,776,554 |
Investments | Shares | Value | ||||||
Energy Equipment & Services – 0.6% | ||||||||
Aker Solutions ASA* (a) (b) | 7,535 | $ | 38,575 | |||||
Borr Drilling Ltd.* | 46,640 | 132,679 | ||||||
BW Offshore Ltd.* (a) | 85,075 | 472,229 | ||||||
CES Energy Solutions Corp. | 31,144 | 60,427 | ||||||
CGG SA* | 552,697 | 999,724 | ||||||
Enerflex Ltd. | 78,251 | 1,077,900 | ||||||
Ensign Energy Services, Inc. | 156,704 | 655,846 | ||||||
Hunting plc | 21,556 | 165,518 | ||||||
John Wood Group plc | 6,800 | 41,709 | ||||||
Modec, Inc. | 8,100 | 247,636 | ||||||
Northern Drilling Ltd.* | 16,960 | 104,143 | ||||||
Ocean Yield ASA(a) | 35,382 | 267,999 | ||||||
Odfjell Drilling Ltd.* (a) | 40,528 | 139,944 | ||||||
Pason Systems, Inc. | 2,356 | 34,941 | ||||||
Petrofac Ltd. | 42,828 | 247,506 | ||||||
PetroleumGeo-Services ASA* | 62,000 | 136,834 | ||||||
Saipem SpA* | 41,391 | 209,530 | ||||||
SBM Offshore NV | 9,020 | 166,996 | ||||||
Secure Energy Services, Inc. | 18,144 | 108,173 | ||||||
Subsea 7 SA(a) | 17,002 | 215,486 | ||||||
TechnipFMC plc | 17,264 | 424,522 | ||||||
Tecnicas Reunidas SA(a) | 8,964 | 267,222 | ||||||
Tenaris SA | 6,336 | 87,907 | ||||||
TGS NOPEC Geophysical Co. ASA | 1,140 | 29,714 | ||||||
WorleyParsons Ltd.(a) | 15,811 | 159,361 | ||||||
6,492,521 | ||||||||
Entertainment – 0.6% | ||||||||
Avex, Inc. | 33,200 | 420,012 | ||||||
Capcom Co. Ltd. | 2,600 | 58,478 | ||||||
Cineplex, Inc. | 6,480 | 123,415 | ||||||
Cineworld Group plc(a) | 77,666 | 321,973 | ||||||
CTS Eventim AG & Co. KGaA | 1,375 | 70,329 | ||||||
Daiichikosho Co. Ltd. | 1,100 | 53,728 | ||||||
DeNA Co. Ltd. | 4,000 | 62,312 | ||||||
Entertainment One Ltd. | 66,815 | 415,135 | ||||||
EVENT Hospitality and Entertainment Ltd.(a) | 2,282 | 21,041 | ||||||
IGG, Inc. | 822,000 | 1,043,557 | ||||||
Kinepolis Group NV | 1,030 | 61,179 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 105 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Entertainment – (continued) | ||||||||
Koei Tecmo Holdings Co. Ltd. | 1,728 | $ | 31,372 | |||||
Konami Holdings Corp. | 2,200 | 99,951 | ||||||
Nexon Co. Ltd.* | 9,800 | 140,434 | ||||||
Nintendo Co. Ltd. | 3,500 | 1,194,164 | ||||||
Paradox Interactive AB(a) | 952 | 14,570 | ||||||
Shochiku Co. Ltd.(a) | 300 | 35,959 | ||||||
Square Enix Holdings Co. Ltd. | 1,800 | 61,899 | ||||||
Toei Animation Co. Ltd. | 900 | 44,606 | ||||||
Toei Co. Ltd. | 2,000 | 258,765 | ||||||
Toho Co. Ltd. | 4,100 | 171,362 | ||||||
Ubisoft Entertainment SA* | 2,066 | 196,899 | ||||||
Vivendi SA(a) | 29,133 | 844,639 | ||||||
5,745,779 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.5% | ||||||||
Abacus Property Group(a) | 55,680 | 147,748 | ||||||
Activia Properties, Inc. | 15 | 62,626 | ||||||
Advance Residence Investment Corp. | 41 | 114,303 | ||||||
Aedifica SA | 1,145 | 102,656 | ||||||
AEON REIT Investment Corp. | 29 | 35,047 | ||||||
ALE Property Group(a) | 9,405 | 31,841 | ||||||
Allied Properties REIT | 6,442 | 227,137 | ||||||
alstria officeREIT-AG* | 6,756 | 105,849 | ||||||
Altarea SCA | 120 | 25,337 | ||||||
Argosy Property Ltd. | 64,665 | 56,709 | ||||||
Artis REIT | 79,431 | 615,868 | ||||||
Ascendas REIT | 124,500 | 274,390 | ||||||
Ascott Residence Trust | 55,364 | 48,808 | ||||||
Assura plc | 23,120 | 17,964 | ||||||
Aventus Group | 305,715 | 490,605 | ||||||
Befimmo SA | 657 | 37,625 | ||||||
Big Yellow Group plc | 18,489 | 250,914 | ||||||
British Land Co. plc (The) | 16,528 | 127,988 | ||||||
BWP Trust | 52,734 | 137,332 | ||||||
Canadian Apartment Properties REIT | 5,101 | 181,751 | ||||||
CapitaLand Mall Trust | 10,900 | 19,379 | ||||||
CapitaLand Retail China Trust | 95,662 | 106,119 | ||||||
CDL Hospitality Trusts | 36,800 | 43,256 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Champion REIT | 132,000 | $ | 111,719 | |||||
Charter Hall Education Trust(a) | 52,383 | 137,524 | ||||||
Charter Hall Group | 16,271 | 112,347 | ||||||
Charter Hall Long Wale REIT(a) | 87,371 | 282,882 | ||||||
Charter Hall Retail REIT | 45,600 | 149,244 | ||||||
Choice Properties REIT | 15,440 | 156,558 | ||||||
Cofinimmo SA | 491 | 62,730 | ||||||
Comforia Residential REIT, Inc. | 34 | 89,842 | ||||||
Covivio | 1,956 | 211,537 | ||||||
Cromwell Property Group | 213,520 | 169,072 | ||||||
Daiwa House REIT Investment Corp. | 42 | 96,350 | ||||||
Derwent London plc | 7,721 | 319,076 | ||||||
Dexus | 42,496 | 373,885 | ||||||
Dream Global REIT | 25,896 | 265,467 | ||||||
Dream Office REIT(a) | 7,025 | 121,679 | ||||||
ESR-REIT | 1,460,800 | 568,781 | ||||||
Far East Hospitality Trust | 53,300 | 25,843 | ||||||
First REIT | 26,713 | 19,036 | ||||||
Fortune REIT | 48,000 | 62,161 | ||||||
Frasers Centrepoint Trust | 25,000 | 43,895 | ||||||
Frasers Commercial Trust | 23,748 | 25,821 | ||||||
Frasers Hospitality Trust | 39,200 | 22,031 | ||||||
Frasers Logistics & Industrial | 125,180 | 108,516 | ||||||
Frontier Real Estate Investment Corp. | 12 | 49,886 | ||||||
Fukuoka REIT Corp. | 26 | 40,433 | ||||||
GDI Property Group(a) | 309,737 | 303,032 | ||||||
Gecina SA | 1,909 | 284,756 | ||||||
Global One Real Estate Investment Corp. | 48 | 55,380 | ||||||
GLPJ-Reit | 74 | 79,598 | ||||||
Goodman Group | 56,689 | 525,091 | ||||||
Goodman Property Trust | 19,085 | 22,019 | ||||||
GPT Group (The) | 78,103 | 314,994 | ||||||
Granite REIT | 2,800 | 126,949 | ||||||
Great Portland Estates plc | 1 | 8 | ||||||
Growthpoint Properties Australia Ltd. | 19,121 | 56,660 |
See Accompanying Notes to the Financial Statements.
106 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Hamborner REIT AG* | 6,058 | $ | 63,520 | |||||
Hammerson plc | 2,839 | 11,914 | ||||||
Hankyu Hanshin REIT, Inc. | 26 | 34,620 | ||||||
Heiwa Real Estate REIT, Inc.(a) | 73 | 82,455 | ||||||
Hibernia REIT plc | 143,009 | 229,186 | ||||||
Hoshino Resorts REIT, Inc. | 24 | 116,364 | ||||||
Hulic Reit, Inc. | 23 | 37,688 | ||||||
ICADE | 2,497 | 213,237 | ||||||
Ichigo Office REIT Investment(a) | 184 | 169,503 | ||||||
Immobiliare Grande Distribuzione SIIQ SpA | 23,342 | 176,576 | ||||||
Industrial & Infrastructure Fund Investment Corp. | 94 | 106,850 | ||||||
Inmobiliaria Colonial Socimi SA | 12,081 | 129,908 | ||||||
InterRent REIT | 1,944 | 19,639 | ||||||
Intu Properties plc(a) | 103,200 | 126,841 | ||||||
Invesco OfficeJ-Reit, Inc.(a) | 6,986 | 1,063,816 | ||||||
Invincible Investment Corp. | 121 | 61,165 | ||||||
Japan Hotel REIT Investment Corp. | 77 | 62,706 | ||||||
Japan Logistics Fund, Inc. | 19 | 40,619 | ||||||
Japan Prime Realty Investment Corp. | 25 | 99,888 | ||||||
Japan Real Estate Investment Corp. | 18 | 99,717 | ||||||
Japan Rental Housing Investments, Inc. | 26 | 20,053 | ||||||
Japan Retail Fund Investment Corp. | 52 | 99,448 | ||||||
Kenedix Office Investment Corp. | 9 | 60,202 | ||||||
Kenedix Residential Next Investment Corp. | 34 | 54,919 | ||||||
Kenedix Retail REIT Corp. | 31 | 75,040 | ||||||
Keppel DC REIT | 139,440 | 154,683 | ||||||
Keppel REIT | 80,733 | 72,358 | ||||||
Killam Apartment REIT | 9,680 | 136,219 | ||||||
Kiwi Property Group Ltd. | 3,973 | 4,080 | ||||||
Klepierre SA | 3,280 | 116,416 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Land Securities Group plc | 11,280 | $ | 135,729 | |||||
LaSalle Logiport REIT | 129 | 138,179 | ||||||
Link REIT | 61,301 | 714,947 | ||||||
LondonMetric Property plc | 99,589 | 262,515 | ||||||
Mapletree Commercial Trust | 32,090 | 45,499 | ||||||
Mapletree Industrial Trust | 33,211 | 50,261 | ||||||
Mapletree Logistics Trust | 73,207 | 79,596 | ||||||
Mapletree North Asia Commercial Trust(b) | 49,500 | 49,456 | ||||||
MCUBS MidCity Investment Corp. | 100 | 91,583 | ||||||
Merlin Properties Socimi SA | 24,402 | 332,270 | ||||||
Mirai Corp.(a) | 1,344 | 590,696 | ||||||
Mirvac Group | 149,151 | 297,093 | ||||||
Mitsui Fudosan Logistics Park, Inc. | 332 | 1,053,755 | ||||||
Mori Hills REIT Investment Corp. | 58 | 77,229 | ||||||
National Storage REIT(a) | 70,798 | 89,198 | ||||||
Nippon Accommodations Fund, Inc. | 8 | 40,871 | ||||||
Nippon Building Fund, Inc. | 40 | 257,508 | ||||||
Nippon Prologis REIT, Inc. | 41 | 87,982 | ||||||
NIPPON REIT Investment Corp. | 33 | 123,111 | ||||||
Nomura Real Estate Master Fund, Inc. | 159 | 232,843 | ||||||
Northview Apartment REIT | 22,908 | 479,890 | ||||||
NorthWest Healthcare Properties REIT | 39,923 | 340,111 | ||||||
One REIT, Inc. | 14 | 34,681 | ||||||
Orix JREIT, Inc. | 134 | 235,214 | ||||||
OUE Hospitality Trust | 60,500 | 31,779 | ||||||
Parkway Life REIT | 12,500 | 26,539 | ||||||
Precinct Properties New Zealand | 22,735 | 24,259 | ||||||
Premier Investment Corp. | 90 | 111,434 | ||||||
Primary Health Properties plc | 109,786 | 188,063 | ||||||
Property for Industry Ltd. | 51,499 | 68,174 | ||||||
RDI REIT plc | 284,539 | 468,125 | ||||||
Regal REIT | 705,000 | 221,958 | ||||||
Reit 1 Ltd. | 137,863 | 625,954 | ||||||
Retail Estates NV | 666 | 62,099 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 107 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Safestore Holdings plc | 12,195 | $ | 102,383 | |||||
Scentre Group | 133,796 | 359,738 | ||||||
Secure Income REIT plc | 14,030 | 75,539 | ||||||
Segro plc | 48,026 | 424,740 | ||||||
Sekisui House Reit, Inc. | 55 | 39,654 | ||||||
Shaftesbury plc | 4,480 | 50,198 | ||||||
Shopping Centres Australasia Property Group | 104,511 | 188,314 | ||||||
Societe Fonciere Lyonnaise SA | 972 | 71,024 | ||||||
SPH REIT | 44,800 | 33,900 | ||||||
Star Asia Investment Corp. | 78 | 75,987 | ||||||
Starhill Global REIT | 72,900 | 40,702 | ||||||
Stockland | 76,425 | 202,795 | ||||||
Sunlight REIT | 55,000 | 40,450 | ||||||
Suntec REIT | 154,200 | 209,572 | ||||||
Terreis(a) | 968 | 61,619 | ||||||
Tokyu REIT, Inc. | 40 | 62,851 | ||||||
Tritax Big Box REIT plc | 124,560 | 241,301 | ||||||
Unibail-Rodamco-Westfield(a) | 4,814 | 826,791 | ||||||
Unibail-Rodamco-Westfield, CHDI | 5 | 43 | ||||||
UNITE Group plc (The) | 9,133 | 112,157 | ||||||
United Urban Investment Corp. | 84 | 134,098 | ||||||
Vicinity Centres | 23,616 | 42,220 | ||||||
Vital Healthcare Property Trust | 43,976 | 62,468 | ||||||
Viva Energy REIT | 403,629 | 698,872 | ||||||
Warehouses De Pauw CVA, CVA | 851 | 127,607 | ||||||
Wereldhave NV | 38,429 | 982,798 | ||||||
Workspace Group plc | 8,954 | 115,153 | ||||||
25,447,259 | ||||||||
Food & Staples Retailing – 1.1% | ||||||||
Aeon Co. Ltd. | 34,613 | 638,495 | ||||||
Ain Holdings, Inc. | 800 | 63,497 | ||||||
Alimentation Couche-Tard, Inc., Class B | 11,703 | 687,199 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
Arcs Co. Ltd. | 2,818 | $ | 56,929 | |||||
Axfood AB | 3,184 | 58,360 | ||||||
Axial Retailing, Inc. | 1,100 | 32,691 | ||||||
Belc Co. Ltd. | 800 | 35,735 | ||||||
Carrefour SA | 9,745 | 189,702 | ||||||
Casino Guichard Perrachon SA(a) | 3,920 | 160,350 | ||||||
Cawachi Ltd. | 3,600 | 63,483 | ||||||
cocokara fine, Inc. | 3,500 | 138,900 | ||||||
Colruyt SA | 1,990 | 143,312 | ||||||
Cosmos Pharmaceutical Corp.(a) | 100 | 15,928 | ||||||
Create SD Holdings Co. Ltd. | 2,000 | 46,043 | ||||||
Daikokutenbussan Co. Ltd. | 400 | 13,701 | ||||||
Dairy Farm International Holdings Ltd. | 7,600 | 59,508 | ||||||
Empire Co. Ltd., Class A | 1,666 | 36,907 | ||||||
FamilyMart UNY Holdings Co. Ltd. | 10,948 | 291,750 | ||||||
George Weston Ltd. | 1,920 | 142,773 | ||||||
Heiwado Co. Ltd. | 1,200 | 22,088 | ||||||
ICA Gruppen AB(a) | 4,604 | 166,352 | ||||||
Inageya Co. Ltd. | 2,398 | 28,615 | ||||||
Itochu-Shokuhin Co. Ltd. | 400 | 16,826 | ||||||
J Sainsbury plc | 109,809 | 318,514 | ||||||
Kato Sangyo Co. Ltd. | 1,400 | 45,504 | ||||||
Kesko OYJ, Class A | 562 | 26,957 | ||||||
Kesko OYJ, Class B | 2,318 | 120,277 | ||||||
Kobe Bussan Co. Ltd. | 800 | 31,713 | ||||||
Koninklijke Ahold Delhaize NV | 67,147 | 1,614,900 | ||||||
Kusuri no Aoki Holdings Co. Ltd. | 600 | 42,128 | ||||||
Loblaw Cos. Ltd. | 4,980 | 242,966 | ||||||
MARR SpA(a) | 1,155 | 28,024 | ||||||
Matsumotokiyoshi Holdings Co. Ltd. | 3,600 | 118,141 | ||||||
Maxvalu Nishinihon Co. Ltd. | 4,400 | 68,741 | ||||||
Metcash Ltd.(a) | 125,413 | 253,340 | ||||||
METRO AG | 13,612 | 230,350 | ||||||
Metro, Inc.(a) | 11,102 | 400,273 | ||||||
Ministop Co. Ltd. | 1,000 | 15,731 | ||||||
Nihon Chouzai Co. Ltd. | 3,400 | 123,331 |
See Accompanying Notes to the Financial Statements.
108 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
North West Co., Inc. (The) | 95 | $ | 1,999 | |||||
Olam International Ltd. | 35,100 | 51,056 | ||||||
Qol Holdings Co. Ltd. | 1,500 | 22,680 | ||||||
Rallye SA(a) | 31,170 | 362,596 | ||||||
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | 243 | 12,680 | ||||||
Retail Partners Co. Ltd. | 23,400 | 244,137 | ||||||
Seven & i Holdings Co. Ltd. | 25,200 | 873,148 | ||||||
Sheng Siong Group Ltd. | 51,500 | 38,969 | ||||||
Shufersal Ltd. | 3,578 | 23,747 | ||||||
Sligro Food Group NV(a) | 1,155 | 42,133 | ||||||
Sogo Medical Holdings Co. Ltd. | 2,000 | 37,082 | ||||||
Sonae SGPS SA | 76,391 | 85,098 | ||||||
Sugi Holdings Co. Ltd. | 800 | 40,296 | ||||||
Sundrug Co. Ltd. | 1,600 | 42,753 | ||||||
Tesco plc | 262,861 | 856,012 | ||||||
Tsuruha Holdings, Inc. | 900 | 76,525 | ||||||
United Super Markets Holdings, Inc. | 2,000 | 18,029 | ||||||
Valor Holdings Co. Ltd. | 10,700 | 259,970 | ||||||
Welcia Holdings Co. Ltd. | 1,800 | 70,707 | ||||||
Wm Morrison Supermarkets plc | 105,493 | 296,919 | ||||||
Woolworths Group Ltd. | 36,354 | 814,970 | ||||||
Yaoko Co. Ltd. | 1,800 | 85,333 | ||||||
Yokohama Reito Co. Ltd.(a) | 41,300 | 325,950 | ||||||
11,472,823 | ||||||||
Food Products – 2.6% | ||||||||
a2 Milk Co. Ltd.* (a) | 46,940 | 524,973 | ||||||
AAK AB | 5,004 | 81,191 | ||||||
Agrana Beteiligungs AG | 3,909 | 87,616 | ||||||
Ajinomoto Co., Inc. | 22,700 | 365,340 | ||||||
Ariake Japan Co. Ltd. | 800 | 46,402 | ||||||
Aryzta AG* (a) | 861,570 | 1,288,127 | ||||||
Associated British Foods plc | 6,314 | 210,638 | ||||||
Austevoll Seafood ASA | 8,913 | 103,379 | ||||||
Bakkafrost P/F | 2,188 | 112,088 | ||||||
Bakkavor Group plc(b) | 72,800 | 122,808 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Barry Callebaut AG (Registered) | 38 | $ | 69,586 | |||||
Bega Cheese Ltd.(a) | 7,095 | 25,269 | ||||||
Bell Food Group AG | 320 | 92,012 | ||||||
Bellamy’s Australia Ltd.* (a) | 1,296 | 9,833 | ||||||
Bonduelle SCA | 3,725 | 119,185 | ||||||
Bourbon Corp. | 14,500 | 244,368 | ||||||
Calbee, Inc. | 3,200 | 87,919 | ||||||
Chocoladefabriken Lindt & Spruengli AG | 43 | 285,893 | ||||||
Chocoladefabriken Lindt & Spruengli AG (Registered) | 6 | 455,152 | ||||||
Costa Group Holdings Ltd. | 13,860 | 55,313 | ||||||
Cranswick plc | 2,274 | 85,911 | ||||||
Danone SA(a) | 18,274 | 1,476,175 | ||||||
DyDo Group Holdings, Inc.(a) | 500 | 22,267 | ||||||
Ebro Foods SA | 4,297 | 90,534 | ||||||
Elders Ltd. | 75,281 | 320,039 | ||||||
Emmi AG (Registered) | 41 | 36,111 | ||||||
First Resources Ltd. | 24,300 | 32,669 | ||||||
ForFarmers NV | 16,757 | 143,100 | ||||||
Freedom Foods Group Ltd. | 4,139 | 15,091 | ||||||
Fuji Oil Holdings, Inc. | 3,400 | 108,831 | ||||||
Fujicco Co. Ltd. | 2,000 | 39,398 | ||||||
Fujiya Co. Ltd. | 400 | 7,424 | ||||||
Glanbia plc | 5,838 | 107,234 | ||||||
GrainCorp Ltd., Class A | 10,837 | 68,649 | ||||||
Greencore Group plc | 27,840 | 83,475 | ||||||
Grieg Seafood ASA | 8,400 | 96,701 | ||||||
House Foods Group, Inc.(a) | 2,400 | 96,323 | ||||||
Inghams Group Ltd.(a) | 43,760 | 137,062 | ||||||
Itoham Yonekyu Holdings, Inc.(a) | 6,500 | 40,444 | ||||||
Japfa Ltd. | 182,200 | 85,666 | ||||||
Kagome Co. Ltd. | 900 | 24,444 | ||||||
Kameda Seika Co. Ltd. | 900 | 42,182 | ||||||
Kerry Group plc, Class A | 5,146 | 575,559 | ||||||
Kikkoman Corp. | 4,000 | 185,320 | ||||||
Kotobuki Spirits Co. Ltd. | 1,000 | 44,759 | ||||||
LDC SA | 1,458 | 171,568 | ||||||
Leroy Seafood Group ASA | 18,318 | 132,055 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 109 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Lotus Bakeries NV | 13 | $ | 34,092 | |||||
Maple Leaf Foods, Inc. | 1,946 | 45,221 | ||||||
Maruha Nichiro Corp. | 4,400 | 139,062 | ||||||
MEIJI Holdings Co. Ltd. | 3,800 | 298,541 | ||||||
Mitsui Sugar Co. Ltd. | 14,600 | 351,580 | ||||||
Morinaga & Co. Ltd. | 1,100 | 45,679 | ||||||
Morinaga Milk Industry Co. Ltd. | 1,200 | 39,488 | ||||||
Mowi ASA | 19,819 | 428,352 | ||||||
Nestle SA (Registered) | 95,616 | 9,200,342 | ||||||
NH Foods Ltd. | 8,400 | 337,131 | ||||||
Nichirei Corp. | 3,500 | 80,512 | ||||||
Nippon Flour Mills Co. Ltd. | 7,000 | 117,845 | ||||||
Nippon Suisan Kaisha Ltd. | 45,500 | 317,428 | ||||||
Nisshin Oillio Group Ltd. (The) | 1,100 | 31,358 | ||||||
Nisshin Seifun Group, Inc. | 7,090 | 164,494 | ||||||
Nissin Foods Holdings Co. Ltd. | 1,500 | 98,721 | ||||||
Norway Royal Salmon ASA | 5,200 | 112,148 | ||||||
Origin Enterprises plc | 110,556 | 682,690 | ||||||
Orkla ASA | 26,005 | 203,409 | ||||||
Premium Brands Holdings Corp. | 1,100 | 65,851 | ||||||
Prima Meat Packers Ltd. | 30,800 | 562,489 | ||||||
Riken Vitamin Co. Ltd. | 17,500 | 573,513 | ||||||
S Foods, Inc. | 4,500 | 154,747 | ||||||
Sakata Seed Corp. | 2,800 | 88,871 | ||||||
Salmar ASA | 3,870 | 175,431 | ||||||
Saputo, Inc. | 4,455 | 151,712 | ||||||
Savencia SA | 3,237 | 246,684 | ||||||
Schouw & Co. A/S | 1,160 | 82,399 | ||||||
Showa Sangyo Co. Ltd. | 6,800 | 183,776 | ||||||
Starzen Co. Ltd. | 9,500 | 342,469 | ||||||
Strauss Group Ltd. | 952 | 24,251 | ||||||
Suedzucker AG | 8,802 | 135,142 | ||||||
Synlait Milk Ltd.* (a) | 26,640 | 187,789 | ||||||
Tassal Group Ltd. | 37,680 | 135,788 | ||||||
Tate & Lyle plc | 1,134 | 11,348 | ||||||
Toyo Suisan Kaisha Ltd. | 2,800 | 106,469 | ||||||
United International Enterprises | 1,079 | 224,331 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Vilmorin & Cie SA(a) | 6,937 | $ | 385,605 | |||||
Viscofan SA | 825 | 49,511 | ||||||
Vitasoy International Holdings Ltd. | 16,000 | 80,557 | ||||||
Wessanen | 9,410 | 121,909 | ||||||
WH Group Ltd.(b) | 551,500 | 653,752 | ||||||
Wilmar International Ltd. | 141,100 | 377,317 | ||||||
Yakult Honsha Co. Ltd. | 4,300 | 291,493 | ||||||
Yamazaki Baking Co. Ltd. | 2,900 | 43,015 | ||||||
26,840,395 | ||||||||
Gas Utilities – 0.3% | ||||||||
AltaGas Ltd.(a) | 11,723 | 155,209 | ||||||
APA Group | 30,793 | 208,500 | ||||||
Hong Kong & China Gas Co. Ltd. | 288,317 | 687,957 | ||||||
Italgas SpA | 28,609 | 178,265 | ||||||
Naturgy Energy Group SA | 14,608 | 414,518 | ||||||
Nippon Gas Co. Ltd.(a) | 2,000 | 52,471 | ||||||
Osaka Gas Co. Ltd. | 11,700 | 215,879 | ||||||
Rubis SCA | 4,187 | 228,988 | ||||||
Saibu Gas Co. Ltd. | 28,500 | 598,788 | ||||||
Shizuoka Gas Co. Ltd. | 17,600 | 142,380 | ||||||
Superior Plus Corp. | 18,859 | 163,747 | ||||||
Toho Gas Co. Ltd. | 2,000 | 82,245 | ||||||
Tokyo Gas Co. Ltd. | 7,700 | 195,447 | ||||||
3,324,394 | ||||||||
Health Care Equipment & Supplies – 0.8% | ||||||||
Ambu A/S, Class B(a) | 9,093 | 260,642 | ||||||
Ansell Ltd. | 6,098 | 115,886 | ||||||
Arjo AB, Class B | 4,131 | 15,295 | ||||||
Asahi Intecc Co. Ltd. | 5,600 | 282,074 | ||||||
BioMerieux | 825 | 65,414 | ||||||
Carl Zeiss Meditec AG | 715 | 70,154 | ||||||
Cochlear Ltd. | 1,232 | 162,442 | ||||||
Coloplast A/S, Class B | 4,067 | 438,468 | ||||||
CYBERDYNE, Inc.* (a) | 24,300 | 152,291 | ||||||
Demant A/S* | 2,796 | 88,140 | ||||||
DiaSorin SpA | 869 | 84,826 | ||||||
Draegerwerk AG & Co. KGaA | 5,893 | 275,068 | ||||||
Draegerwerk AG & Co. KGaA (Preference) | 5,010 | 300,387 |
See Accompanying Notes to the Financial Statements.
110 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Eiken Chemical Co. Ltd.(a) | 1,600 | $ | 28,732 | |||||
Elekta AB, Class B | 6,069 | 71,818 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 12,815 | 135,117 | ||||||
Fukuda Denshi Co. Ltd. | 3,563 | 248,250 | ||||||
GN Store Nord A/S | 3,824 | 195,573 | ||||||
Hogy Medical Co. Ltd. | 1,200 | 39,219 | ||||||
Hoya Corp. | 11,100 | 778,869 | ||||||
Koninklijke Philips NV | 29,880 | 1,271,316 | ||||||
Mani, Inc. | 1,300 | 74,819 | ||||||
Menicon Co. Ltd. | 1,600 | 45,971 | ||||||
Nagaileben Co. Ltd. | 1,500 | 33,657 | ||||||
Nakanishi, Inc. | 5,100 | 97,673 | ||||||
Nanosonics Ltd.* (a) | 26,752 | 93,017 | ||||||
Nihon Kohden Corp. | 2,300 | 66,806 | ||||||
Nikkiso Co. Ltd. | 26,000 | 320,521 | ||||||
Nipro Corp.(a) | 5,200 | 64,291 | ||||||
Olympus Corp. | 37,600 | 419,972 | ||||||
Paramount Bed Holdings Co. Ltd. | 800 | 37,495 | ||||||
Sartorius AG (Preference) | 1,451 | 265,385 | ||||||
Sectra AB, Class B* | 1,654 | 56,022 | ||||||
Siemens Healthineers AG(b) | 3,645 | 155,310 | ||||||
Smith & Nephew plc | 29,133 | 562,282 | ||||||
Sonova Holding AG (Registered) | 1,577 | 318,031 | ||||||
Straumann Holding AG (Registered) | 219 | 176,790 | ||||||
Sysmex Corp. | 4,200 | 239,537 | ||||||
Terumo Corp. | 19,600 | 589,012 | ||||||
Ypsomed Holding AG (Registered)* | 81 | 10,620 | ||||||
8,707,192 | ||||||||
Health Care Providers & Services – 0.5% | ||||||||
Alfresa Holdings Corp. | 12,600 | 350,141 | ||||||
Ambea AB(b) | 10,800 | 87,588 | ||||||
Amplifon SpA | 3,837 | 73,661 | ||||||
As One Corp. | 700 | 55,874 | ||||||
Australian Pharmaceutical Industries Ltd.(a) | 260,786 | 264,318 | ||||||
BML, Inc. | 3,300 | 92,889 | ||||||
Chartwell Retirement Residences | 14,947 | 163,226 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
CVS Group plc | 14,160 | $ | 116,019 | |||||
EBOS Group Ltd.(a) (d) | 1,980 | 28,284 | ||||||
Evergrande Health Industry Group Ltd.* | 125,000 | 173,987 | ||||||
Fagron | 8,568 | 169,670 | ||||||
Fresenius Medical Care AG & Co. KGaA | 5,146 | 432,303 | ||||||
Fresenius SE & Co. KGaA | 10,707 | 606,926 | ||||||
Galenica AG* (b) | 3,128 | 159,470 | ||||||
Healius Ltd. | 52,880 | 116,125 | ||||||
Healthscope Ltd. | 71,257 | 122,878 | ||||||
Japan Lifeline Co. Ltd. | 3,000 | 47,192 | ||||||
Korian SA(a) | 4,471 | 179,682 | ||||||
Mediclinic International plc | 34,000 | 152,076 | ||||||
Medipal Holdings Corp. | 7,100 | 159,053 | ||||||
Metlifecare Ltd.(a) | 62,748 | 207,141 | ||||||
NichiiGakkan Co. Ltd. | 9,200 | 112,589 | ||||||
NMC Health plc(a) | 1,466 | 53,933 | ||||||
Orpea(a) | 1,118 | 136,195 | ||||||
Raffles Medical Group Ltd. | 4,037 | 3,203 | ||||||
Ramsay Health Care Ltd.(a) | 2,640 | 121,375 | ||||||
RHOEN-KLINIKUM AG | 579 | 17,066 | ||||||
Ryman Healthcare Ltd.(a) | 13,156 | 106,601 | ||||||
Ship Healthcare Holdings, Inc. | 3,300 | 135,259 | ||||||
Sienna Senior Living, Inc. | 2,835 | 38,946 | ||||||
Sonic Healthcare Ltd. | 17,852 | 322,296 | ||||||
Summerset Group Holdings Ltd. | 11,425 | 42,744 | ||||||
Suzuken Co. Ltd. | 3,380 | 194,227 | ||||||
Toho Holdings Co. Ltd.(a) | 4,200 | 98,047 | ||||||
Town Health International Medical Group Ltd.* (d) | 398,000 | 35,004 | ||||||
UDG Healthcare plc | 11,405 | 97,684 | ||||||
Vital KSK Holdings, Inc.(a) | 33,600 | 319,785 | ||||||
5,593,457 | ||||||||
Health Care Technology – 0.0%(e) | ||||||||
CompuGroup Medical SE | 624 | 41,260 | ||||||
M3, Inc.(a) | 10,000 | 176,790 | ||||||
218,050 | ||||||||
Hotels, Restaurants & Leisure – 1.9% | ||||||||
Accor SA | 7,885 | 331,907 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 111 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Aeon Fantasy Co. Ltd. | 500 | $ | 11,906 | |||||
Arcland Service Holdings Co. Ltd. | 1,400 | 24,876 | ||||||
Ardent Leisure Group Ltd.(a) | 43,861 | 39,516 | ||||||
Aristocrat Leisure Ltd. | 16,849 | 309,287 | ||||||
Atom Corp.(a) | 5,800 | 50,097 | ||||||
Autogrill SpA | 6,257 | 60,761 | ||||||
Basic-Fit NV* (b) | 3,008 | 106,526 | ||||||
Carnival plc | 8,051 | 423,501 | ||||||
Cie des Alpes | 7,470 | 225,197 | ||||||
Codere SA* | 13,520 | 55,304 | ||||||
Colowide Co. Ltd.(a) | 3,500 | 70,141 | ||||||
Compass Group plc | 46,065 | 1,046,717 | ||||||
Corporate Travel Management Ltd.(a) | 3,366 | 63,138 | ||||||
Create Restaurants Holdings, Inc. | 2,200 | 26,311 | ||||||
Crown Resorts Ltd. | 11,014 | 103,027 | ||||||
Dalata Hotel Group plc | 16,255 | 107,298 | ||||||
Domino’s Pizza Enterprises | 1,460 | 44,188 | ||||||
Domino’s Pizza Group plc | 15,345 | 53,512 | ||||||
Doutor Nichires Holdings Co. Ltd. | 2,700 | 51,418 | ||||||
EI Group plc* | 437,908 | 1,217,113 | ||||||
Evolution Gaming Group AB(b) | 1,265 | 129,603 | ||||||
Flight Centre Travel Group Ltd.(a) | 3,119 | 84,300 | ||||||
Fuji Kyuko Co. Ltd. | 1,000 | 37,755 | ||||||
Galaxy Entertainment Group Ltd. | 67,000 | 500,873 | ||||||
Genting Hong Kong Ltd. | 2,016,000 | 269,814 | ||||||
Genting Singapore Ltd. | 144,000 | 104,202 | ||||||
GL Ltd. | 310,200 | 181,170 | ||||||
Great Canadian Gaming Corp.* | 2,860 | 109,472 | ||||||
Greene King plc | 260,454 | 2,176,457 | ||||||
Greggs plc | 8,343 | 195,448 | ||||||
GVC Holdings plc | 19,520 | 166,120 | ||||||
Hiday Hidaka Corp. | 2,191 | 39,758 | ||||||
HIS Co. Ltd. | 800 | 25,428 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Hongkong & Shanghai Hotels Ltd. (The) | 24,000 | $ | 35,119 | |||||
Ichibanya Co. Ltd. | 1,000 | 40,898 | ||||||
InterContinental Hotels Group plc | 6,308 | 408,540 | ||||||
J D Wetherspoon plc | 3,795 | 67,680 | ||||||
Kindred Group plc, SDR | 4,675 | 40,717 | ||||||
Kisoji Co. Ltd.(a) | 1,700 | 39,609 | ||||||
KOMEDA Holdings Co. Ltd. | 1,200 | 21,980 | ||||||
Kyoritsu Maintenance Co. Ltd. | 1,600 | 81,886 | ||||||
LeoVegas AB(a) (b) | 23,920 | 65,117 | ||||||
Macau Legend Development Ltd. | 456,000 | 73,816 | ||||||
Mandarin Oriental International Ltd. | 8,000 | 15,440 | ||||||
Marston’s plc(a) | 664,083 | 878,718 | ||||||
McDonald’s Holdings Co. Japan Ltd. | 1,100 | 50,864 | ||||||
Melco International Development Ltd. | 21,000 | 51,500 | ||||||
Merlin Entertainments plc(b) | 6,309 | 30,119 | ||||||
MGM China Holdings Ltd. | 32,400 | 66,738 | ||||||
Millennium & Copthorne Hotels plc | 22,400 | 130,240 | ||||||
Miramar Hotel & Investment | 249,000 | 523,048 | ||||||
Mitchells & Butlers plc* | 219,203 | 730,127 | ||||||
MOS Food Services, Inc. | 2,100 | 49,156 | ||||||
NagaCorp Ltd.(a) | 244,000 | 312,876 | ||||||
NetEnt AB* | 4,549 | 14,441 | ||||||
Ohsho Food Service Corp. | 1,504 | 97,633 | ||||||
Oriental Land Co. Ltd. | 8,300 | 914,397 | ||||||
Paddy Power Betfair plc – SGMX | 2,766 | 233,951 | ||||||
Paddy Power Betfair plc – XDUB | 405 | 33,896 | ||||||
Pandox AB | 5,720 | 97,953 | ||||||
Parques Reunidos Servicios Centrales SAU(b) | 600 | 9,347 | ||||||
Playtech plc | 292,824 | 1,668,967 | ||||||
Plenus Co. Ltd. | 1,000 | 16,485 | ||||||
Rank Group plc | 106,502 | 222,146 | ||||||
Restaurant Brands International, Inc. | 4,178 | 271,576 |
See Accompanying Notes to the Financial Statements.
112 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Restaurant Brands International, Inc.* | 3,458 | $ | 224,775 | |||||
Restaurant Brands New Zealand Ltd. | 1,154 | 6,542 | ||||||
Ringer Hut Co. Ltd.(a) | 1,700 | 35,916 | ||||||
Round One Corp. | 10,800 | 144,873 | ||||||
Royal Holdings Co. Ltd.(a) | 1,600 | 39,061 | ||||||
Saizeriya Co. Ltd. | 9,400 | 210,914 | ||||||
Sands China Ltd. | 71,600 | 393,346 | ||||||
Scandic Hotels Group AB(b) | 65,902 | 612,797 | ||||||
Shangri-La Asia Ltd. | 32,000 | 45,356 | ||||||
SJM Holdings Ltd. | 76,000 | 91,738 | ||||||
SkiStar AB | 2,828 | 34,150 | ||||||
Skylark Holdings Co. Ltd. | 3,700 | 60,894 | ||||||
Sodexo SA | 3,410 | 390,757 | ||||||
SSP Group plc | 25,786 | 233,967 | ||||||
St Marc Holdings Co. Ltd. | 1,400 | 31,362 | ||||||
Star Entertainment Grp Ltd. (The) | 38,963 | 124,505 | ||||||
Stars Group, Inc. (The)* | 6,337 | 119,090 | ||||||
Tabcorp Holdings Ltd. | 39,123 | 131,901 | ||||||
Thomas Cook Group plc* (a) | 562,789 | 195,746 | ||||||
Tokyo Dome Corp. | 7,000 | 69,324 | ||||||
Toridoll Holdings Corp.(a) | 1,600 | 35,714 | ||||||
Tosho Co. Ltd. | 800 | 20,507 | ||||||
TUI AG, DI | 30,461 | 339,048 | ||||||
Whitbread plc | 5,146 | 299,203 | ||||||
William Hill plc | 1,450 | 3,038 | ||||||
Wynn Macau Ltd. | 50,400 | 144,543 | ||||||
Yoshinoya Holdings Co. Ltd.(a) | 4,900 | 74,176 | ||||||
Zensho Holdings Co. Ltd.(a) | 3,600 | 80,937 | ||||||
19,931,301 | ||||||||
Household Durables – 1.8% | ||||||||
Bang & Olufsen A/S* (a) | 1,701 | 14,810 | ||||||
Barratt Developments plc | 72,542 | 569,118 | ||||||
Bellway plc | 5,360 | 217,453 | ||||||
Berkeley Group Holdings plc | 5,229 | 256,038 | ||||||
Bonava AB, Class B(a) | 85,158 | 1,084,764 | ||||||
Bovis Homes Group plc | 109,228 | 1,580,585 |
Investments | Shares | Value | ||||||
Household Durables – (continued) | ||||||||
Breville Group Ltd. | 4,514 | $ | 61,129 | |||||
Cairn Homes plc* | 123,064 | 176,811 | ||||||
Casio Computer Co. Ltd. | 10,000 | 125,791 | ||||||
Countryside Properties plc(b) | 424,877 | 1,877,690 | ||||||
Crest Nicholson Holdings plc(a) | 249,000 | 1,249,744 | ||||||
De’ Longhi SpA* | 4,522 | 115,749 | ||||||
Electrolux AB, Series B | 23,941 | 587,520 | ||||||
ES-Con Japan Ltd.(a) | 33,600 | 238,028 | ||||||
Fiskars OYJ Abp | 574 | 13,026 | ||||||
Forbo Holding AG (Registered) | 81 | 130,125 | ||||||
Foster Electric Co. Ltd. | 3,437 | 53,418 | ||||||
Fujitsu General Ltd. | 2,100 | 30,564 | ||||||
Haseko Corp. | 18,700 | 225,156 | ||||||
Husqvarna AB, Class B(a) | 10,433 | 95,103 | ||||||
Iida Group Holdings Co. Ltd. | 15,400 | 259,812 | ||||||
JM AB(a) | 1,842 | 35,031 | ||||||
Kaufman & Broad SA | 13,612 | 542,467 | ||||||
Man Wah Holdings Ltd.(a) | 30,400 | 15,655 | ||||||
McCarthy & Stone plc(b) | 530,785 | 887,090 | ||||||
Nagawa Co. Ltd. | 500 | 27,565 | ||||||
Neinor Homes SA* (a) (b) | 10,080 | 114,661 | ||||||
Nikon Corp. | 17,000 | 236,588 | ||||||
Nobia AB* | 100,679 | 632,765 | ||||||
Panasonic Corp. | 66,500 | 609,621 | ||||||
Persimmon plc | 12,782 | 372,590 | ||||||
Pressance Corp. | 21,600 | 263,758 | ||||||
Redrow plc | 23,420 | 188,074 | ||||||
Rinnai Corp. | 100 | 6,716 | ||||||
Sangetsu Corp. | 2,256 | 42,213 | ||||||
SEB SA | 560 | 102,423 | ||||||
Sekisui Chemical Co. Ltd. | 20,700 | 331,014 | ||||||
Sekisui House Ltd. | 28,300 | 455,341 | ||||||
Sharp Corp.* (a) | 16,200 | 179,782 | ||||||
Sony Corp. | 41,500 | 1,942,070 | ||||||
Starts Corp., Inc. | 5,200 | 115,369 | ||||||
Sumitomo Forestry Co. Ltd.(a) | 7,800 | 106,941 | ||||||
Tamron Co. Ltd. | 6,800 | 132,367 | ||||||
Taylor Wimpey plc | 115,622 | 273,425 | ||||||
Techtronic Industries Co. Ltd. | 94,000 | 679,354 | ||||||
Token Corp.(a) | 8,510 | 518,050 | ||||||
TomTom NV* | 19,325 | 166,503 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 113 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Household Durables – (continued) | ||||||||
Zojirushi Corp.(a) | 14,600 | $ | 149,965 | |||||
18,089,832 | ||||||||
Household Products – 0.4% | ||||||||
Earth Corp.(a) | 600 | 27,475 | ||||||
Essity AB, Class A | 7,815 | 230,583 | ||||||
Essity AB, Class B | 13,793 | 408,851 | ||||||
Henkel AG & Co. KGaA | 3,176 | 302,366 | ||||||
Henkel AG & Co. KGaA (Preference) | 4,150 | 419,698 | ||||||
Lion Corp. | 7,900 | 162,291 | ||||||
Pigeon Corp.(a) | 2,400 | 101,603 | ||||||
PZ Cussons plc | 54,000 | 144,314 | ||||||
Reckitt Benckiser Group plc | 21,663 | 1,750,093 | ||||||
Unicharm Corp. | 17,400 | 570,079 | ||||||
4,117,353 | ||||||||
Independent Power and Renewable Electricity Producers – 0.3% | ||||||||
Boralex, Inc., Class A | 2,081 | 28,294 | ||||||
China Smarter Energy Group Holdings Ltd.* | 162,000 | 10,738 | ||||||
ContourGlobal plc(b) | 192,108 | 545,963 | ||||||
Drax Group plc | 45,660 | 202,979 | ||||||
EDP Renovaveis SA* | 6,490 | 64,369 | ||||||
Electric Power Development Co. Ltd. | 8,600 | 199,219 | ||||||
Encavis AG | 3,696 | 26,882 | ||||||
ERG SpA | 2,090 | 38,530 | ||||||
Innergex Renewable Energy, Inc. | 559 | 5,884 | ||||||
Meridian Energy Ltd. | 28,875 | 78,182 | ||||||
Northland Power, Inc.(a) | 2,116 | 37,469 | ||||||
Renewables Infrastructure Group Ltd. (The)(a) | 988,708 | 1,603,428 | ||||||
Scatec Solar ASA* (b) | 988 | 9,346 | ||||||
Uniper SE | 11,039 | 334,152 | ||||||
3,185,435 | ||||||||
Industrial Conglomerates – 0.9% | ||||||||
CK Hutchison Holdings Ltd. | 144,856 | 1,521,418 | ||||||
DCC plc | 2,080 | 185,690 | ||||||
Guoco Group Ltd. | 4,000 | 59,500 |
Investments | Shares | Value | ||||||
Industrial Conglomerates – (continued) | ||||||||
Hopewell Holdings Ltd.(d) | 8,000 | $ | 39,361 | |||||
Indus Holding AG | 1,013 | 53,869 | ||||||
Investment AB Latour, Class B(a) | 15,896 | 224,893 | ||||||
Italmobiliare SpA | 245 | 5,447 | ||||||
Jardine Matheson Holdings Ltd. | 8,300 | 546,140 | ||||||
Jardine Strategic Holdings Ltd. | 9,200 | 347,944 | ||||||
Keppel Corp. Ltd. | 30,500 | 151,693 | ||||||
Lifco AB, Class B | 2,000 | 95,174 | ||||||
Mie Kotsu Group Holdings, Inc. | 58,800 | 311,488 | ||||||
Nisshinbo Holdings, Inc. | 19,200 | 169,805 | ||||||
Nolato AB, Class B* | 710 | 32,905 | ||||||
NWS Holdings Ltd. | 53,401 | 110,949 | ||||||
Rheinmetall AG | 2,435 | 279,167 | ||||||
Sembcorp Industries Ltd. | 17,200 | 33,612 | ||||||
Shun Tak Holdings Ltd. | 1,270,000 | 564,955 | ||||||
Siemens AG (Registered) | 25,315 | 3,028,269 | ||||||
Smiths Group plc | 14,359 | 284,998 | ||||||
TOKAI Holdings Corp. | 21,395 | 177,883 | ||||||
Toshiba Corp. | 33,300 | 1,106,263 | ||||||
9,331,423 | ||||||||
Insurance – 5.1% | ||||||||
Admiral Group plc | 14,366 | 412,770 | ||||||
Aegon NV | 55,776 | 291,038 | ||||||
Ageas | 10,458 | 550,853 | ||||||
AIA Group Ltd. | 384,200 | 3,915,261 | ||||||
Allianz SE (Registered) | 22,410 | 5,394,678 | ||||||
Alm Brand A/S | 16,240 | 154,681 | ||||||
ASR Nederland NV | 8,971 | 398,130 | ||||||
Assicurazioni Generali SpA | 60,258 | 1,168,289 | ||||||
AUB Group Ltd. | 2,255 | 20,062 | ||||||
Aviva plc | 233,728 | 1,308,684 | ||||||
AXA SA(a) | 113,378 | 3,017,104 | ||||||
Baloise Holding AG (Registered) | 3,237 | 554,642 | ||||||
Beazley plc | 40,089 | 301,029 | ||||||
CBL Corp. Ltd.* (d) | 102,937 | 217,616 | ||||||
Clal Insurance Enterprises Holdings Ltd.* | 4,320 | 59,923 | ||||||
CNP Assurances(a) | 12,616 | 297,479 |
See Accompanying Notes to the Financial Statements.
114 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Coface SA(a) | 89,889 | $ | 906,647 | |||||
Dai-ichi Life Holdings, Inc. | 60,500 | 866,420 | ||||||
Direct Insurance Financial Investments Ltd. | 3,564 | 40,034 | ||||||
Direct Line Insurance Group plc | 112,332 | 482,379 | ||||||
Fairfax Financial Holdings Ltd. | 581 | 275,936 | ||||||
Gjensidige Forsikring ASA | 945 | 18,310 | ||||||
Great Eastern Holdings Ltd. | 6,800 | 129,636 | ||||||
Great-West Lifeco, Inc. | 8,799 | 220,237 | ||||||
Grupo Catalana Occidente SA | 2,102 | 79,388 | ||||||
Hannover Rueck SE | 3,071 | 462,560 | ||||||
Harel Insurance Investments & Financial Services Ltd. | 19,063 | 142,668 | ||||||
Hastings Group Holdings plc(b) | 315,940 | 783,798 | ||||||
Helvetia Holding AG (Registered)* | 253 | 160,763 | ||||||
Hiscox Ltd. | 15,272 | 333,282 | ||||||
iA Financial Corp., Inc. | 9,326 | 369,795 | ||||||
IDI Insurance Co. Ltd. | 1,760 | 82,111 | ||||||
Insurance Australia Group Ltd. | 59,926 | 332,370 | ||||||
Intact Financial Corp. | 5,478 | 446,360 | ||||||
Japan Post Holdings Co. Ltd. | 69,300 | 773,422 | ||||||
Japan Post Insurance Co. Ltd.(a) | 7,600 | 153,194 | ||||||
Just Group plc | 786,348 | 699,134 | ||||||
Lancashire Holdings Ltd. | 25,424 | 227,865 | ||||||
Legal & General Group plc | 280,357 | 1,016,786 | ||||||
Manulife Financial Corp. | 97,193 | 1,782,450 | ||||||
Mapfre SA | 86,403 | 259,025 | ||||||
Medibank Pvt Ltd.(a) | 62,011 | 124,829 | ||||||
Menora Mivtachim Holdings Ltd. | 24,805 | 318,862 | ||||||
Migdal Insurance & Financial Holding Ltd. | 90,400 | 93,538 | ||||||
MS&AD Insurance Group Holdings, Inc. | 23,000 | 709,980 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)* | 8,217 | $ | 2,053,561 | |||||
nib holdings Ltd.(a) | 19,924 | 80,635 | ||||||
NN Group NV(a) | 18,675 | 812,467 | ||||||
Phoenix Group Holdings plc | 16,000 | 150,702 | ||||||
Phoenix Holdings Ltd. (The) | 21,712 | 123,603 | ||||||
Poste Italiane SpA(b) | 18,839 | 200,783 | ||||||
Power Corp. of Canada | 13,224 | 302,190 | ||||||
Power Financial Corp. | 6,237 | 148,043 | ||||||
Prudential plc | 133,547 | 3,020,610 | ||||||
QBE Insurance Group Ltd. | 82,004 | 746,300 | ||||||
RSA Insurance Group plc | 38,512 | 272,117 | ||||||
Sabre Insurance Group plc(b) | 170,150 | 590,031 | ||||||
Saga plc | 898,558 | 689,958 | ||||||
Sampo OYJ, Class A | 11,872 | 542,310 | ||||||
SCOR SE(a) | 10,707 | 436,296 | ||||||
Societa Cattolica di Assicurazioni SC | 161,186 | 1,501,128 | ||||||
Sompo Holdings, Inc. | 20,400 | 762,150 | ||||||
Sony Financial Holdings, Inc. | 8,500 | 173,015 | ||||||
Steadfast Group Ltd. | 52,828 | 126,794 | ||||||
Storebrand ASA | 17,930 | 150,946 | ||||||
Sun Life Financial, Inc. | 29,465 | 1,219,166 | ||||||
Suncorp Group Ltd. | 25,079 | 234,240 | ||||||
Swiss Life Holding AG (Registered)* | 1,992 | 936,572 | ||||||
Swiss Re AG | 15,189 | 1,461,662 | ||||||
T&D Holdings, Inc. | 24,900 | 267,500 | ||||||
Talanx AG | 3,690 | 147,302 | ||||||
Tokio Marine Holdings, Inc. | 43,200 | 2,172,897 | ||||||
Topdanmark A/S | 1,650 | 88,820 | ||||||
Tryg A/S | 2,365 | 72,211 | ||||||
Unipol Gruppo SpA | 69,056 | 351,046 | ||||||
UnipolSai Assicurazioni SpA(a) | 27,841 | 76,194 | ||||||
UNIQA Insurance Group AG | 4,884 | 51,998 | ||||||
Wuestenrot & Wuerttembergische AG | 14,608 | 299,593 | ||||||
Zurich Insurance Group AG | 7,720 | 2,461,460 | ||||||
53,078,318 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 115 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Interactive Media & Services – 0.1% | ||||||||
Auto Trader Group plc(b) | 28,947 | $ | 213,364 | |||||
carsales.com Ltd. | 634 | 6,006 | ||||||
Dip Corp.(a) | 1,400 | 21,244 | ||||||
Funding Circle Holdings plc* (b) | 10,653 | 35,136 | ||||||
Kakaku.com, Inc.(a) | 1,600 | 32,754 | ||||||
LINE Corp.* (a) | 900 | 30,182 | ||||||
REA Group Ltd.(a) | 2,748 | 154,541 | ||||||
Rightmove plc | 32,130 | 226,437 | ||||||
Scout24 AG(b) | 2,584 | 132,921 | ||||||
XING SE | 165 | 61,299 | ||||||
Yahoo Japan Corp. | 40,000 | 106,308 | ||||||
1,020,192 | ||||||||
Internet & Direct Marketing Retail – 0.3% | ||||||||
ASKUL Corp.(a) | 500 | 13,423 | ||||||
ASOS plc* | 3,749 | 191,634 | ||||||
Belluna Co. Ltd. | 16,300 | 122,351 | ||||||
boohoo Group plc* | 21,836 | 69,942 | ||||||
Delivery Hero SE* (b) | 4,128 | 190,093 | ||||||
Dustin Group AB(a) (b) | 3,680 | 32,941 | ||||||
Just Eat plc* | 13,319 | 121,369 | ||||||
Moneysupermarket.com Group plc | 22,168 | 105,107 | ||||||
Ocado Group plc* | 33,307 | 591,607 | ||||||
Rakuten, Inc. | 24,300 | 269,454 | ||||||
Rocket Internet SE* (b) | 1,646 | 43,350 | ||||||
Takeaway.com NV* (a) (b) | 1,022 | 87,849 | ||||||
Takkt AG | 31,955 | 502,084 | ||||||
Trade Me Group Ltd. | 9,564 | 41,012 | ||||||
Webjet Ltd.(a) | 2,707 | 32,124 | ||||||
Zalando SE* (b) | 1,921 | 90,291 | ||||||
zooplus AG* | 207 | 22,433 | ||||||
ZOZO, Inc. | 4,000 | 70,572 | ||||||
2,597,636 | ||||||||
IT Services – 1.0% | ||||||||
Adyen NV* (a) (b) | 581 | 472,457 | ||||||
Afterpay Touch Group Ltd.* | 2,660 | 47,911 | ||||||
Alten SA | 1,130 | 123,220 | ||||||
Altran Technologies SA(a) | 16,181 | 210,446 | ||||||
Amadeus IT Group SA | 14,027 | 1,114,867 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
Atea ASA* | 10,346 | $ | 147,398 | |||||
Atos SE | 5,727 | 589,067 | ||||||
Bechtle AG | 1,192 | 122,099 | ||||||
Cancom SE | 2,336 | 117,703 | ||||||
Capgemini SE | 4,814 | 583,205 | ||||||
CGI, Inc.* | 8,964 | 642,580 | ||||||
Computacenter plc | 9,339 | 146,950 | ||||||
Computershare Ltd. | 18,304 | 229,709 | ||||||
Digital Garage, Inc. | 1,300 | 37,701 | ||||||
DTS Corp. | 2,000 | 70,483 | ||||||
Econocom Group SA/NV(a) | 134,958 | 560,220 | ||||||
Evry A/S(b) | 119,105 | 441,436 | ||||||
FDM Group Holdings plc | 3,850 | 49,187 | ||||||
Formula Systems 1985 Ltd. | 4,749 | 226,174 | ||||||
Fujitsu Ltd. | 10,600 | 774,240 | ||||||
Global Dominion Access SA* (b) | 2,113 | 11,272 | ||||||
GMO internet, Inc. | 1,200 | 18,521 | ||||||
Indra Sistemas SA* | 5,627 | 66,215 | ||||||
Infocom Corp. | 1,600 | 30,599 | ||||||
Itochu Techno-Solutions Corp. | 2,400 | 58,634 | ||||||
Link Administration Holdings Ltd. | 6,763 | 36,177 | ||||||
Matrix IT Ltd. | 2,464 | 32,803 | ||||||
NEC Networks & System Integration Corp. | 4,300 | 103,354 | ||||||
NET One Systems Co. Ltd. | 8,100 | 208,582 | ||||||
NEXTDC Ltd.* (a) | 16,647 | 74,872 | ||||||
Nihon Unisys Ltd. | 2,600 | 66,368 | ||||||
Nomura Research Institute Ltd. | 4,215 | 205,499 | ||||||
NS Solutions Corp. | 800 | 21,448 | ||||||
NSD Co. Ltd. | 2,580 | 63,866 | ||||||
NTT Data Corp. | 34,500 | 400,835 | ||||||
Obic Co. Ltd. | 1,500 | 173,199 | ||||||
Otsuka Corp. | 3,400 | 133,405 | ||||||
Reply SpA | 880 | 57,200 | ||||||
SCSK Corp. | 900 | 42,586 | ||||||
Shopify, Inc., Class A* | 2,558 | 619,438 | ||||||
Softcat plc | 12,119 | 143,296 | ||||||
Sopra Steria Group | 1,463 | 186,585 | ||||||
SUNeVision Holdings Ltd. | 134,000 | 114,266 |
See Accompanying Notes to the Financial Statements.
116 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
Tieto OYJ | 1,598 | $ | 45,345 | |||||
TIS, Inc. | 2,300 | 104,494 | ||||||
Transcosmos, Inc. | 2,100 | 45,743 | ||||||
Wirecard AG | 2,822 | 422,842 | ||||||
Worldline SA* (a) (b) | 1,045 | 65,759 | ||||||
10,260,256 | ||||||||
Leisure Products – 0.2% | ||||||||
Bandai Namco Holdings, Inc. | 9,500 | 452,076 | ||||||
Beneteau SA | 8,838 | 112,023 | ||||||
BRP, Inc. | 3,584 | 110,941 | ||||||
Heiwa Corp. | 8,850 | 175,768 | ||||||
Mizuno Corp. | 16,600 | 381,260 | ||||||
Sega Sammy Holdings, Inc. | 5,300 | 66,812 | ||||||
Shimano, Inc. | 2,800 | 409,535 | ||||||
Spin Master Corp.* (b) | 2,048 | 67,795 | ||||||
Technogym SpA(b) | 4,905 | 60,082 | ||||||
Thule Group AB(b) | 2,805 | 65,147 | ||||||
Tomy Co. Ltd. | 10,900 | 116,267 | ||||||
Universal Entertainment Corp. | 300 | 9,401 | ||||||
Yamaha Corp. | 4,600 | 237,486 | ||||||
Yonex Co. Ltd. | 10,000 | 61,594 | ||||||
2,326,187 | ||||||||
Life Sciences Tools & Services – 0.2% | ||||||||
Clinigen Group plc | 5,270 | 68,393 | ||||||
EPS Holdings, Inc. | 1,900 | 33,863 | ||||||
Eurofins Scientific SE(a) | 622 | 284,407 | ||||||
Evotec SE* | 9,067 | 224,363 | ||||||
Gerresheimer AG* | 755 | 56,691 | ||||||
Lonza Group AG (Registered)* | 2,241 | 692,093 | ||||||
QIAGEN NV* | 7,147 | 278,447 | ||||||
Sartorius Stedim Biotech | 770 | 104,416 | ||||||
Siegfried Holding AG (Registered)* | 165 | 62,583 | ||||||
Tecan Group AG (Registered) | 779 | 175,524 | ||||||
1,980,780 |
Investments | Shares | Value | ||||||
Machinery – 3.5% | ||||||||
Aalberts NV | 5,787 | $ | 226,992 | |||||
Ag Growth International, Inc. | 912 | 39,668 | ||||||
Aichi Corp. | 32,000 | 217,787 | ||||||
Aida Engineering Ltd. | 32,400 | 253,673 | ||||||
Alfa Laval AB | 6,238 | 144,618 | ||||||
Alstom SA | 3,962 | 174,056 | ||||||
Amada Holdings Co. Ltd. | 18,600 | 206,416 | ||||||
ANDRITZ AG(a) | 3,620 | 172,420 | ||||||
Atlas Copco AB, Class A(a) | 15,604 | 484,527 | ||||||
Atlas Copco AB, Class B | 21,248 | 604,129 | ||||||
ATS Automation Tooling Systems, Inc.* | 1,400 | 22,324 | ||||||
Bando Chemical Industries Ltd. | 42,000 | 408,404 | ||||||
Beijer Alma AB | 2,304 | 32,378 | ||||||
Biesse SpA | 14,691 | 326,650 | ||||||
Bodycote plc | 16,467 | 183,974 | ||||||
Bucher Industries AG (Registered) | 275 | 93,430 | ||||||
Cargotec OYJ, Class B | 684 | 27,995 | ||||||
CKD Corp. | 41,300 | 475,020 | ||||||
CNH Industrial NV | 20,335 | 220,328 | ||||||
Concentric AB | 914 | 14,652 | ||||||
Construcciones y Auxiliar de Ferrocarriles SA | 5,727 | 269,566 | ||||||
Conzzeta AG (Registered) | 55 | 47,444 | ||||||
Daetwyler Holding AG(a) | 1,134 | 175,831 | ||||||
Daifuku Co. Ltd. | 4,800 | 292,202 | ||||||
Daiwa Industries Ltd. | 1,600 | 18,633 | ||||||
Danieli & C Officine Meccaniche SpA | 3,209 | 65,309 | ||||||
Danieli & C Officine Meccaniche SpA (Retirement Savings Plan) | 3,477 | 50,345 | ||||||
Deutz AG* | 134,134 | 1,319,844 | ||||||
DMG Mori AG | 1,007 | 51,857 | ||||||
DMG Mori Co. Ltd.(a) | 2,100 | 29,980 | ||||||
Duerr AG | 1,232 | 55,408 | ||||||
Epiroc AB, Class A* | 40,753 | 420,956 | ||||||
FANUC Corp.(a) | 5,300 | 988,620 | ||||||
Fincantieri SpA | 79,280 | 96,846 | ||||||
Fluidra SA* | 912 | 9,965 | ||||||
Fuji Corp. | 13,000 | 194,810 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 117 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Fujitec Co. Ltd. | 61,100 | $ | 744,446 | |||||
Furukawa Co. Ltd. | 44,800 | 555,098 | ||||||
GEA Group AG | 10,292 | 287,433 | ||||||
Georg Fischer AG (Registered) | 290 | 281,747 | ||||||
Gima TT SpA(b) | 12,720 | 100,785 | ||||||
Glory Ltd. | 8,400 | 211,178 | ||||||
Harmonic Drive Systems, Inc.(a) | 1,500 | 58,990 | ||||||
Hino Motors Ltd. | 16,000 | 150,554 | ||||||
Hitachi Construction Machinery Co. Ltd.(a) | 13,500 | 357,576 | ||||||
Hitachi Zosen Corp.(a) | 104,600 | 323,074 | ||||||
Hoshizaki Corp. | 1,200 | 77,576 | ||||||
Hosokawa Micron Corp. | 8,400 | 393,697 | ||||||
IHI Corp. | 2,500 | 59,192 | ||||||
IMA Industria Macchine Automatiche SpA | 495 | 38,832 | ||||||
Interpump Group SpA | 3,884 | 145,732 | ||||||
Interroll Holding AG (Registered) | 34 | 74,239 | ||||||
Japan Steel Works Ltd. (The) | 8,600 | 164,935 | ||||||
JTEKT Corp. | 2,300 | 29,510 | ||||||
Jungheinrich AG (Preference)* | 2,364 | 82,182 | ||||||
Kawasaki Heavy Industries Ltd. | 2,800 | 65,013 | ||||||
KION Group AG | 3,984 | 272,536 | ||||||
Kitz Corp. | 87,300 | 664,695 | ||||||
Koenig & Bauer AG | 12,436 | 602,358 | ||||||
Komatsu Ltd. | 28,600 | 732,365 | ||||||
Komax Holding AG (Registered)(a) | 645 | 147,863 | ||||||
Komori Corp. | 4,400 | 50,726 | ||||||
Kone OYJ, Class B | 11,952 | 654,460 | ||||||
Konecranes OYJ | 2,273 | 94,558 | ||||||
Krones AG | 1,610 | 149,669 | ||||||
Kubota Corp. | 45,387 | 685,848 | ||||||
Kurita Water Industries Ltd. | 3,400 | 88,102 | ||||||
Kyokuto Kaihatsu Kogyo Co. Ltd. | 33,300 | 467,022 | ||||||
Makino Milling Machine Co. Ltd. | 25,000 | 1,052,750 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Makita Corp. | 6,600 | $ | 240,000 | |||||
Manitou BF SA(a) | 4,640 | 152,361 | ||||||
Max Co. Ltd.(a) | 9,800 | 149,497 | ||||||
Meidensha Corp. | 28,400 | 403,401 | ||||||
Metso OYJ | 507 | 18,870 | ||||||
MINEBEA MITSUMI, Inc. | 16,611 | 293,815 | ||||||
MISUMI Group, Inc. | 8,500 | 219,645 | ||||||
Mitsubishi Heavy Industries Ltd. | 7,011 | 290,890 | ||||||
Mitsui E&S Holdings Co. Ltd.(a) | 8,100 | 79,491 | ||||||
Miura Co. Ltd. | 3,300 | 83,644 | ||||||
Morgan Advanced Materials plc | 39,032 | 142,170 | ||||||
Morita Holdings Corp. | 9,000 | 151,838 | ||||||
Nabtesco Corp. | 10,700 | 325,684 | ||||||
Nachi-Fujikoshi Corp.(a) | 20,900 | 1,028,346 | ||||||
NFI Group, Inc.(a) | 1,903 | 47,929 | ||||||
NGK Insulators Ltd. | 8,700 | 128,420 | ||||||
Nippon Thompson Co. Ltd. | 75,600 | 388,945 | ||||||
Nitta Corp. | 3,400 | 111,731 | ||||||
Nittoku Engineering Co. Ltd.(a) | 8,100 | 202,182 | ||||||
Noritake Co. Ltd. | 16,700 | 808,198 | ||||||
Norma Group SE | 234 | 11,051 | ||||||
NSK Ltd. | 42,600 | 439,865 | ||||||
OC Oerlikon Corp. AG (Registered) | 13,878 | 181,136 | ||||||
Oiles Corp.(a) | 8,620 | 143,570 | ||||||
OKUMA Corp. | 1,000 | 58,451 | ||||||
OSG Corp. | 1,500 | 30,020 | ||||||
Outotec OYJ* | 35,725 | 188,014 | ||||||
Palfinger AG | 2,657 | 86,651 | ||||||
Pfeiffer Vacuum Technology AG | 1,102 | 184,881 | ||||||
Rational AG | 55 | 37,106 | ||||||
Rieter Holding AG (Registered) | 960 | 139,054 | ||||||
Rotork plc | 23,256 | 94,561 | ||||||
Ryobi Ltd. | 26,600 | 604,008 | ||||||
Sandvik AB(a) | 30,710 | 567,406 | ||||||
Schindler Holding AG | 1,579 | 340,593 | ||||||
Schindler Holding AG (Registered) | 602 | 127,844 |
See Accompanying Notes to the Financial Statements.
118 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
SFS Group AG* (a) | 1,600 | $ | 147,753 | |||||
Shima Seiki Manufacturing Ltd. | 1,300 | 43,479 | ||||||
Shinmaywa Industries Ltd. | 11,400 | 140,331 | ||||||
Shinwa Co. Ltd. | 8,100 | 164,145 | ||||||
Sintokogio Ltd. | 69,400 | 649,914 | ||||||
SKF AB, Class A | 2,427 | 44,829 | ||||||
SKF AB, Class B | 3,120 | 57,679 | ||||||
SMC Corp. | 1,800 | 744,404 | ||||||
Sodick Co. Ltd.(a) | 22,800 | 204,304 | ||||||
Spirax-Sarco Engineering plc | 2,851 | 306,628 | ||||||
Stabilus SA | 3,183 | 177,147 | ||||||
Star Micronics Co. Ltd.(a) | 31,100 | 504,860 | ||||||
Sumitomo Heavy Industries Ltd. | 5,200 | 183,255 | ||||||
Tadano Ltd.(a) | 14,600 | 153,112 | ||||||
Takeuchi Manufacturing Co. Ltd. | 3,800 | 71,445 | ||||||
Takuma Co. Ltd. | 16,800 | 201,977 | ||||||
THK Co. Ltd. | 10,600 | 276,576 | ||||||
Tocalo Co. Ltd. | 58,800 | 480,959 | ||||||
Toshiba Machine Co. Ltd. | 14,049 | 318,633 | ||||||
Trelleborg AB, Class B | 2,480 | 40,956 | ||||||
Tsubaki Nakashima Co. Ltd.(a) | 5,600 | 103,578 | ||||||
Tsubakimoto Chain Co. | 2,200 | 81,481 | ||||||
Tsugami Corp.(a) | 16,200 | 145,018 | ||||||
Union Tool Co. | 500 | 13,737 | ||||||
Valmet OYJ | 5,005 | 137,423 | ||||||
Vesuvius plc | 179,197 | 1,442,543 | ||||||
Volvo AB, Class A | 23,489 | 375,308 | ||||||
Volvo AB, Class B | 85,319 | 1,364,128 | ||||||
Vossloh AG | 1,458 | 66,993 | ||||||
Wacker Neuson SE | 5,236 | 144,939 | ||||||
Wartsila OYJ Abp | 11,288 | 179,890 | ||||||
Washtec AG | 2,080 | 163,407 | ||||||
Weir Group plc (The) | 2,400 | 51,922 | ||||||
YAMABIKO Corp. | 50,000 | 492,031 | ||||||
Yangzijiang Shipbuilding Holdings Ltd. | 174,600 | 201,383 | ||||||
36,659,233 |
Investments | Shares | Value | ||||||
Marine – 0.3% | ||||||||
AP Moller – Maersk A/S, Class A | 249 | $ | 303,137 | |||||
AP Moller – Maersk A/S, Class B(a) | 166 | 216,095 | ||||||
Dfds A/S(a) | 1,509 | 71,535 | ||||||
Golden Ocean Group Ltd.(a) | 8,000 | 47,680 | ||||||
Iino Kaiun Kaisha Ltd.(a) | 120,600 | 419,054 | ||||||
Irish Continental Group plc(a) | 11,810 | 66,574 | ||||||
Kawasaki Kisen Kaisha Ltd.* (a) | 8,100 | 117,091 | ||||||
Kuehne + Nagel International AG (Registered) | 1,360 | 197,594 | ||||||
NS United Kaiun Kaisha Ltd. | 8,400 | 183,423 | ||||||
Orient Overseas International Ltd.* | 7,000 | 47,289 | ||||||
Pacific Basin Shipping Ltd.(a) | 3,701,000 | 759,504 | ||||||
SITC International Holdings Co. Ltd. | 182,000 | 193,242 | ||||||
Stolt-Nielsen Ltd. | 9,680 | 120,895 | ||||||
Wallenius Wilhelmsen ASA | 19,252 | 68,125 | ||||||
Wilh Wilhelmsen Holding ASA, Class A | 4,368 | 78,546 | ||||||
Wilh Wilhelmsen Holding ASA, Class B | 2,216 | 40,233 | ||||||
2,930,017 | ||||||||
Media – 1.3% | ||||||||
Altice Europe NV* (a) | 11,083 | 35,026 | ||||||
Ascential plc | 19,337 | 89,894 | ||||||
Atresmedia Corp. de Medios de Comunicacion SA(a) | 53,535 | 287,984 | ||||||
Axel Springer SE | 2,916 | 165,032 | ||||||
Cogeco Communications, Inc. | 22,825 | 1,509,620 | ||||||
Cogeco, Inc. | 5,035 | 308,044 | ||||||
Corus Entertainment, Inc., Class B | 133,962 | 758,839 | ||||||
CyberAgent, Inc. | 2,200 | 87,506 | ||||||
Daily Mail & General Trust plc, Class A | 6,037 | 51,707 | ||||||
Dentsu, Inc. | 10,400 | 423,470 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 119 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Euromoney Institutional Investor plc | 4,083 | $ | 65,364 | |||||
Eutelsat Communications SA | 9,628 | 173,613 | ||||||
Hakuhodo DY Holdings, Inc. | 7,400 | 124,446 | ||||||
Informa plc | 52,788 | 536,085 | ||||||
IPSOS | 30,959 | 896,885 | ||||||
ITV plc | 138,195 | 246,186 | ||||||
JCDecaux SA(a) | 6,806 | 222,723 | ||||||
Lagardere SCA(a) | 10,031 | 272,725 | ||||||
Mediaset SpA* (a) | 7,888 | 26,202 | ||||||
Metropole Television SA | 1,295 | 25,674 | ||||||
Modern Times Group MTG AB, Class B | 1,546 | 19,970 | ||||||
Nine Entertainment Co. Holdings Ltd.(a) | 1,336,495 | 1,646,211 | ||||||
Nippon Television Holdings, Inc. | 8,100 | 118,109 | ||||||
NOS SGPS SA | 1,360 | 9,122 | ||||||
NRJ Group(a) | 13,770 | 108,024 | ||||||
oOh!media Ltd.(a) | 6,533 | 17,335 | ||||||
Pearson plc | 31,872 | 344,948 | ||||||
Promotora de Informaciones SA, Class A* | 205,940 | 375,276 | ||||||
ProSiebenSat.1 Media SE | 4,941 | 77,717 | ||||||
Publicis Groupe SA | 4,370 | 258,978 | ||||||
Quebecor, Inc., Class B | 8,092 | 200,977 | ||||||
RAI Way SpA(b) | 8,120 | 42,770 | ||||||
Sanoma OYJ | 10,880 | 110,836 | ||||||
Schibsted ASA, Class A | 2,349 | 61,499 | ||||||
Schibsted ASA, Class B | 3,483 | 83,133 | ||||||
SES SA, FDR(a) | 15,853 | 269,517 | ||||||
Seven West Media Ltd.* (a) | 569,712 | 226,560 | ||||||
Shaw Communications, Inc., Class B | 5,981 | 120,625 | ||||||
Singapore Press Holdings Ltd. | 119,500 | 220,353 | ||||||
SKY Network Television Ltd. | 369,931 | 300,983 | ||||||
SKY Perfect JSAT Holdings, Inc. | 15,200 | 60,595 | ||||||
Southern Cross Media Group Ltd. | 568,550 | 504,219 | ||||||
Stroeer SE & Co. KGaA | 620 | 41,864 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
Tamedia AG (Registered)(a) | 1,826 | $ | 193,173 | |||||
Telenet Group Holding NV | 4,897 | 259,695 | ||||||
Television Francaise 1(a) | 16,320 | 178,143 | ||||||
Vector, Inc. | 1,500 | 17,737 | ||||||
Wowow, Inc. | 3,630 | 93,736 | ||||||
WPP plc | 59,428 | 740,955 | ||||||
Zenrin Co. Ltd. | 2,400 | 52,148 | ||||||
13,062,233 | ||||||||
Metals & Mining – 4.1% | ||||||||
Acacia Mining plc* | 143,039 | 272,810 | ||||||
Acerinox SA | 231 | 2,401 | ||||||
Agnico Eagle Mines Ltd. | 4,296 | 177,180 | ||||||
Aichi Steel Corp. | 10,000 | 305,724 | ||||||
Alamos Gold, Inc., Class A | 48,720 | 225,274 | ||||||
Alumina Ltd. | 94,737 | 149,365 | ||||||
Anglo American plc(a) | 77,107 | 1,991,714 | ||||||
Antofagasta plc | 20,046 | 237,287 | ||||||
APERAM SA(a) | 1,904 | 58,466 | ||||||
ArcelorMittal | 27,971 | 605,877 | ||||||
Asahi Holdings, Inc. | 34,000 | 659,394 | ||||||
Aurelia Metals Ltd.* (a) | 598,181 | 313,667 | ||||||
Aurubis AG | 1,572 | 76,495 | ||||||
Ausdrill Ltd. | 547,903 | 632,452 | ||||||
B2Gold Corp.* | 52,817 | 142,918 | ||||||
Barrick Gold Corp. | 57,166 | 723,712 | ||||||
Bekaert SA(a) | 39,238 | 1,070,328 | ||||||
BHP Group Ltd. | 93,624 | 2,464,557 | ||||||
BHP Group plc | 117,777 | 2,778,152 | ||||||
BlueScope Steel Ltd. | 27,805 | 263,224 | ||||||
Boliden AB* | 10,458 | 310,215 | ||||||
Centamin plc | 48,989 | 56,520 | ||||||
Centerra Gold, Inc.* | 194,220 | 984,672 | ||||||
Daido Steel Co. Ltd.(a) | 2,000 | 80,988 | ||||||
Detour Gold Corp.* | 21,360 | 188,956 | ||||||
Dowa Holdings Co. Ltd.(a) | 2,200 | 71,407 | ||||||
Endeavour Mining Corp.* | 2,501 | 35,362 | ||||||
Eramet | 818 | 57,131 | ||||||
Evolution Mining Ltd. | 42,290 | 94,953 | ||||||
Evraz plc | 12,821 | 104,898 | ||||||
Ferrexpo plc | 307,930 | 832,170 | ||||||
First Quantum Minerals Ltd. | 13,080 | 137,587 | ||||||
Fortescue Metals Group Ltd. | 22,032 | 110,877 |
See Accompanying Notes to the Financial Statements.
120 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Franco-Nevada Corp. | 4,760 | $ | 339,661 | |||||
Fresnillo plc | 13,040 | 127,293 | ||||||
Galaxy Resources Ltd.* (a) | 97,360 | 100,049 | ||||||
Glencore plc* | 694,378 | 2,755,055 | ||||||
Granges AB | 66,068 | 715,804 | ||||||
Hill & Smith Holdings plc | 4,063 | 67,586 | ||||||
Hitachi Metals Ltd.(a) | 4,740 | 54,518 | ||||||
Hochschild Mining plc | 14,099 | 34,206 | ||||||
Hudbay Minerals, Inc. | 245,016 | 1,624,697 | ||||||
IAMGOLD Corp.* | 47,672 | 142,818 | ||||||
Independence Group NL(a) | 36,717 | 115,261 | ||||||
Ivanhoe Mines Ltd., Class A* | 21,170 | 51,304 | ||||||
JFE Holdings, Inc. | 38,700 | 661,939 | ||||||
KAZ Minerals plc | 17,892 | 150,819 | ||||||
Kinross Gold Corp.* | 27,217 | 86,191 | ||||||
Kirkland Lake Gold Ltd. | 9,462 | 304,638 | ||||||
Kobe Steel Ltd. | 8,200 | 62,508 | ||||||
Kyoei Steel Ltd.(a) | 14,300 | 236,632 | ||||||
Labrador Iron Ore Royalty Corp. | 59,013 | 1,359,949 | ||||||
Lundin Gold, Inc.* (a) | 17,172 | 67,018 | ||||||
Lundin Mining Corp. | 48,956 | 261,666 | ||||||
Lynas Corp. Ltd.* (a) | 50,800 | 70,796 | ||||||
MAG Silver Corp.* | 11,120 | 108,786 | ||||||
Mineral Resources Ltd.(a) | 23,157 | 254,102 | ||||||
Mitsubishi Materials Corp. | 8,400 | 217,514 | ||||||
Mitsui Mining & Smelting Co. Ltd. | 11,100 | 286,632 | ||||||
Newcrest Mining Ltd. | 28,386 | 499,687 | ||||||
Nippon Light Metal Holdings Co. Ltd. | 66,500 | 146,285 | ||||||
Nippon Steel Corp. | 43,615 | 775,574 | ||||||
Norsk Hydro ASA | 53,120 | 227,038 | ||||||
Northern Star Resources Ltd. | 34,658 | 199,787 | ||||||
Novagold Resources, Inc.* (a) | 5,530 | 21,952 | ||||||
OceanaGold Corp. | 66,819 | 186,767 | ||||||
OM Holdings Ltd.(a) | 255,051 | 183,108 | ||||||
Osaka Steel Co. Ltd. | 1,000 | 17,104 | ||||||
Outokumpu OYJ | 38,697 | 147,407 | ||||||
OZ Minerals Ltd. | 13,621 | 95,488 | ||||||
Pacific Metals Co. Ltd.(a) | 16,800 | 366,696 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Pan American Silver Corp. | 11,396 | $ | 144,526 | |||||
Pilbara Minerals Ltd.* (a) | 182,560 | 78,382 | ||||||
Polymetal International plc | 20,874 | 219,495 | ||||||
Pretium Resources, Inc.* (a) | 163,510 | 1,236,171 | ||||||
Regis Resources Ltd. | 75,945 | 256,044 | ||||||
Resolute Mining Ltd.(a) | 528,793 | 420,576 | ||||||
Rio Tinto Ltd. | 13,114 | 880,293 | ||||||
Rio Tinto plc | 59,677 | 3,473,677 | ||||||
Salzgitter AG | 6,334 | 208,483 | ||||||
Sandfire Resources NL(a) | 145,416 | 720,551 | ||||||
Sandstorm Gold Ltd.* | 16,268 | 87,193 | ||||||
Sanyo Special Steel Co. Ltd. | 22,900 | 457,280 | ||||||
Saracen Mineral Holdings Ltd.* (a) | 93,458 | 183,527 | ||||||
SEMAFO, Inc.* (a) | 22,315 | 59,055 | ||||||
Sims Metal Management Ltd.(a) | 5,940 | 43,147 | ||||||
South32 Ltd. | 285,188 | 670,437 | ||||||
SSAB AB, Class A(a) | 13,394 | 50,480 | ||||||
SSR Mining, Inc.* | 9,309 | 106,709 | ||||||
St Barbara Ltd. | 43,360 | 97,661 | ||||||
Stelco Holdings, Inc. | 6,320 | 70,473 | ||||||
Sumitomo Metal Mining Co. Ltd. | 9,000 | 281,131 | ||||||
Teck Resources Ltd., Class B | 25,979 | 611,816 | ||||||
thyssenkrupp AG | 6,960 | 97,774 | ||||||
Toho Titanium Co. Ltd. | 200 | 1,670 | ||||||
Toho Zinc Co. Ltd.(a) | 11,500 | 299,542 | ||||||
Tokyo Steel Manufacturing Co. Ltd. | 79,200 | 675,556 | ||||||
Topy Industries Ltd.(a) | 9,700 | 223,133 | ||||||
Torex Gold Resources, Inc.* | 9,122 | 86,867 | ||||||
Turquoise Hill Resources Ltd.* | 84,560 | 125,721 | ||||||
UACJ Corp. | 26,100 | 525,632 | ||||||
voestalpine AG | 2,640 | 84,706 | ||||||
Western Areas Ltd.(a) | 54,000 | 85,898 | ||||||
Wheaton Precious Metals Corp. | 11,744 | 253,004 | ||||||
Yamana Gold, Inc. | 43,348 | 94,739 | ||||||
Yodogawa Steel Works Ltd. | 27,800 | 528,169 | ||||||
42,780,586 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 121 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Multiline Retail – 0.4% | ||||||||
B&M European Value Retail SA | 52,349 | $ | 269,226 | |||||
Canadian Tire Corp. Ltd., Class A(a) | 1,992 | 218,362 | ||||||
Dollarama, Inc. | 8,383 | 250,767 | ||||||
Fuji Co. Ltd. | 33,300 | 553,430 | ||||||
H2O Retailing Corp.(a) | 11,315 | 143,552 | ||||||
Harvey Norman Holdings Ltd. | 5,610 | 16,466 | ||||||
Hudson’s Bay Co.(a) | 117,196 | 649,056 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 14,400 | 136,921 | ||||||
Izumi Co. Ltd.(a) | 1,300 | 56,610 | ||||||
J Front Retailing Co. Ltd. | 10,700 | 130,177 | ||||||
Marks & Spencer Group plc | 46,851 | 174,620 | ||||||
Marui Group Co. Ltd. | 5,500 | 111,457 | ||||||
Next plc | 4,565 | 343,144 | ||||||
Pan Pacific International Holdings Corp. | 3,400 | 218,882 | ||||||
Parco Co. Ltd.(a) | 17,600 | 168,296 | ||||||
Ryohin Keikaku Co. Ltd. | 600 | 113,885 | ||||||
Seria Co. Ltd. | 1,000 | 29,630 | ||||||
Takashimaya Co. Ltd. | 9,100 | 102,051 | ||||||
Wesfarmers Ltd. | 29,631 | 751,017 | ||||||
4,437,549 | ||||||||
Multi-Utilities – 0.8% | ||||||||
A2A SpA | 180,138 | 300,802 | ||||||
ACEA SpA | 1,552 | 28,142 | ||||||
AGL Energy Ltd. | 28,801 | 450,637 | ||||||
Algonquin Power & Utilities Corp. | 27,211 | 309,290 | ||||||
Centrica plc | 313,242 | 433,880 | ||||||
E.ON SE | 54,883 | 588,503 | ||||||
Engie SA | 91,798 | 1,358,504 | ||||||
Hera SpA | 71,330 | 253,728 | ||||||
Innogy SE* | 6,400 | 277,575 | ||||||
Iren SpA | 50,950 | 118,996 | ||||||
Keppel Infrastructure Trust | 170,047 | 59,339 | ||||||
National Grid plc | 117,694 | 1,282,843 | ||||||
REN – Redes Energeticas Nacionais SGPS SA | 338,474 | 967,286 |
Investments | Shares | Value | ||||||
Multi-Utilities – (continued) | ||||||||
RWE AG* | 25,674 | $ | 655,158 | |||||
RWE AG (Preference)(Non-Voting)* | 6,955 | 177,324 | ||||||
Suez | 11,724 | 164,567 | ||||||
Telecom Plus plc | 7,522 | 138,462 | ||||||
Veolia Environnement SA | 28,220 | 666,047 | ||||||
8,231,083 | ||||||||
Oil, Gas & Consumable Fuels – 5.9% | ||||||||
Aker BP ASA | 4,404 | 144,890 | ||||||
ARC Resources Ltd.(a) | 24,960 | 157,902 | ||||||
Baytex Energy Corp.* (a) | 545,310 | 1,102,619 | ||||||
Beach Energy Ltd.(a) | 208,579 | 312,702 | ||||||
Birchcliff Energy Ltd. | 183,670 | 477,881 | ||||||
BP plc | 1,092,397 | 7,960,737 | ||||||
Brightoil Petroleum Holdings Ltd.* (d) | 50,147 | 9,588 | ||||||
BW LPG Ltd.* (b) | 39,840 | 181,981 | ||||||
Cairn Energy plc* | 616,072 | 1,374,979 | ||||||
Caltex Australia Ltd. | 8,880 | 170,068 | ||||||
Cameco Corp. | 13,932 | 153,074 | ||||||
Canadian Natural Resources Ltd. | 68,724 | 2,054,772 | ||||||
Cenovus Energy, Inc. | 41,998 | 414,610 | ||||||
China Aviation Oil Singapore Corp. Ltd. | 96,000 | 96,621 | ||||||
Cosmo Energy Holdings Co. Ltd.(a) | 7,000 | 144,368 | ||||||
Delek Group Ltd. | 543 | 103,187 | ||||||
Diversified Gas & Oil plc(b) | 465,547 | 752,569 | ||||||
DNO ASA | 153,633 | 347,684 | ||||||
Enagas SA | 7,259 | 206,633 | ||||||
Enbridge, Inc. | 64,906 | 2,387,896 | ||||||
Encana Corp. | 26,400 | 182,123 | ||||||
Enerplus Corp. | 16,456 | 149,978 | ||||||
Eni SpA | 139,357 | 2,376,707 | ||||||
Equinor ASA | 59,345 | 1,320,722 | ||||||
Equital Ltd.* | 14,504 | 431,777 | ||||||
Etablissements Maurel et Prom* | 71,463 | 269,898 | ||||||
Euronav NV(a) | 19,296 | 182,083 | ||||||
Galp Energia SGPS SA | 7,324 | 122,874 | ||||||
Gaztransport Et Technigaz SA | 1,680 | 151,846 |
See Accompanying Notes to the Financial Statements.
122 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Genel Energy plc* (a) | 191,315 | $ | 576,132 | |||||
Gibson Energy, Inc. | 7,625 | 125,213 | ||||||
Husky Energy, Inc. | 11,656 | 125,987 | ||||||
Idemitsu Kosan Co. Ltd. | 18,382 | 594,991 | ||||||
Imperial Oil Ltd. | 5,120 | 148,134 | ||||||
Inpex Corp. | 43,500 | 422,209 | ||||||
Inter Pipeline Ltd.(a) | 23,264 | 377,357 | ||||||
Itochu Enex Co. Ltd. | 49,900 | 406,817 | ||||||
Iwatani Corp. | 2,197 | 68,647 | ||||||
Japan Petroleum Exploration Co. Ltd. | 8,000 | 173,612 | ||||||
JXTG Holdings, Inc. | 204,450 | 992,558 | ||||||
Keyera Corp. | 1,840 | 42,348 | ||||||
Koninklijke Vopak NV | 2,356 | 104,955 | ||||||
Lundin Petroleum AB | 4,170 | 136,327 | ||||||
MEG Energy Corp.* (a) | 20,320 | 90,029 | ||||||
Mitsuuroko Group Holdings Co. Ltd. | 41,500 | 333,863 | ||||||
Naphtha Israel Petroleum Corp. Ltd. | 28,780 | 174,950 | ||||||
Neste OYJ | 16,434 | 542,214 | ||||||
New Hope Corp. Ltd. | 48,560 | 91,941 | ||||||
New Zealand Refining Co. Ltd. (The) | 67,959 | 94,269 | ||||||
NexGen Energy Ltd.* (a) | 22,998 | 36,244 | ||||||
Oil Refineries Ltd.* | 182,503 | 89,503 | ||||||
OMV AG | 9,711 | 519,669 | ||||||
Origin Energy Ltd. | 70,799 | 367,261 | ||||||
Parex Resources, Inc.* | 6,710 | 113,828 | ||||||
Parkland Fuel Corp. | 2,333 | 71,610 | ||||||
Pembina Pipeline Corp. | 13,861 | 493,564 | ||||||
PrairieSky Royalty Ltd. | 486 | 6,976 | ||||||
Premier Oil plc* (a) | 607,477 | 790,195 | ||||||
Repsol SA | 68,932 | 1,168,824 | ||||||
Royal Dutch Shell plc, Class A | 244,435 | 7,807,113 | ||||||
Royal Dutch Shell plc, Class B | 198,545 | 6,378,944 | ||||||
San-Ai Oil Co. Ltd. | 62,200 | 523,848 | ||||||
Santos Ltd. | 86,154 | 435,998 | ||||||
Saras SpA(a) | 428,363 | 764,266 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Seven Generations Energy Ltd., Class A* | 29,548 | $ | 230,638 | |||||
Snam SpA | 40,631 | 206,593 | ||||||
Suncor Energy, Inc. | 47,061 | 1,545,610 | ||||||
Tamarack Valley Energy Ltd.* | 75,040 | 152,847 | ||||||
TORC Oil & Gas Ltd. | 28,276 | 100,896 | ||||||
TOTAL SA(a) | 138,808 | 7,707,325 | ||||||
Tourmaline Oil Corp. | 80 | 1,191 | ||||||
TransCanada Corp. | 30,677 | 1,458,138 | ||||||
Tullow Oil plc | 31,712 | 93,142 | ||||||
United Energy Group Ltd.* | 560,000 | 104,928 | ||||||
Vermilion Energy, Inc.(a) | 347 | 8,825 | ||||||
Washington H Soul Pattinson & Co. Ltd. | 8,285 | 134,064 | ||||||
Whitehaven Coal Ltd.(a) | 24,365 | 72,027 | ||||||
Woodside Petroleum Ltd. | 26,614 | 662,935 | ||||||
61,412,324 | ||||||||
Paper & Forest Products – 0.6% | ||||||||
Ahlstrom-Munksjo OYJ | 72,192 | 1,084,135 | ||||||
Altri SGPS SA | 89,972 | 704,309 | ||||||
Canfor Corp.* | 7,392 | 76,986 | ||||||
Canfor Pulp Products, Inc. | 28,718 | 313,183 | ||||||
Daiken Corp.(a) | 12,500 | 235,466 | ||||||
Daio Paper Corp.(a) | 3,745 | 43,175 | ||||||
Ence Energia y Celulosa SA | 22,640 | 121,586 | ||||||
Hokuetsu Corp. | 121,300 | 660,003 | ||||||
Holmen AB, Class B(a) | 4,070 | 85,495 | ||||||
Interfor Corp.* | 48,389 | 600,726 | ||||||
Metsa Board OYJ | 6,595 | 36,778 | ||||||
Mondi plc | 15,023 | 329,121 | ||||||
Navigator Co. SA (The) | 6,520 | 28,789 | ||||||
Nippon Paper Industries Co. Ltd.(a) | 8,100 | 160,291 | ||||||
Norbord, Inc. | 3,136 | 79,542 | ||||||
Oji Holdings Corp. | 45,500 | 272,081 | ||||||
Semapa-Sociedade de Investimento e Gestao | 20,584 | 337,261 | ||||||
Stella-Jones, Inc. | 1,045 | 35,540 | ||||||
Stora Enso OYJ, Class R | 25,813 | 320,095 | ||||||
Svenska Cellulosa AB SCA, Class A | 3,160 | 30,813 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 123 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – (continued) | ||||||||
Svenska Cellulosa AB SCA, Class B | 14,939 | $ | 130,143 | |||||
UPM-Kymmene OYJ | 18,592 | 523,193 | ||||||
West Fraser Timber Co. Ltd. | 2,213 | 113,463 | ||||||
6,322,174 | ||||||||
Personal Products – 1.2% | ||||||||
Beiersdorf AG | 2,822 | 308,165 | ||||||
Blackmores Ltd.(a) | 798 | 51,977 | ||||||
Fancl Corp. | 5,000 | 148,148 | ||||||
Interparfums SA | 541 | 27,071 | ||||||
Kao Corp. | 14,800 | 1,137,092 | ||||||
Kobayashi Pharmaceutical Co. Ltd. | 1,400 | 111,371 | ||||||
Kose Corp. | 700 | 131,044 | ||||||
L’Oreal SA(a) | 7,977 | 2,191,151 | ||||||
Mandom Corp. | 2,600 | 66,976 | ||||||
Milbon Co. Ltd. | 1,000 | 50,999 | ||||||
Noevir Holdings Co. Ltd. | 1,900 | 99,798 | ||||||
Ontex Group NV(a) | 58,471 | 1,467,837 | ||||||
Oriflame Holding AG | 2,061 | 42,600 | ||||||
Pola Orbis Holdings, Inc. | 2,000 | 62,851 | ||||||
Shiseido Co. Ltd. | 13,800 | 1,080,210 | ||||||
Unilever NV, CVA(a) | 51,188 | 3,095,490 | ||||||
Unilever plc | 37,516 | 2,277,878 | ||||||
YA-MAN Ltd.(a) | 800 | 7,650 | ||||||
12,358,308 | ||||||||
Pharmaceuticals – 4.0% | ||||||||
ALK-Abello A/S* | 532 | 90,322 | ||||||
Almirall SA | 4,648 | 74,801 | ||||||
Aphria, Inc.* (a) | 4,500 | 34,188 | ||||||
Astellas Pharma, Inc. | 64,100 | 868,479 | ||||||
AstraZeneca plc | 40,421 | 3,017,306 | ||||||
Aurora Cannabis, Inc.* (a) | 36,271 | 328,143 | ||||||
Bausch Health Cos., Inc.* | 11,620 | 267,263 | ||||||
Bayer AG (Registered) | 50,630 | 3,367,013 | ||||||
BTG plc* | 28,367 | 308,973 | ||||||
CannTrust Holdings, Inc.* (a) | 10,800 | 73,702 | ||||||
Canopy Growth Corp.* (a) | 10,126 | 509,386 | ||||||
Chugai Pharmaceutical Co. Ltd. | 8,800 | 556,247 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
COSMO Pharmaceuticals NV* (a) | 1,040 | $ | 98,183 | |||||
Cronos Group, Inc.* (a) | 10,880 | 185,620 | ||||||
Daiichi Sankyo Co. Ltd. | 19,300 | 949,794 | ||||||
Dechra Pharmaceuticals plc | 5,318 | 184,413 | ||||||
Eisai Co. Ltd. | 9,400 | 544,715 | ||||||
Faes Farma SA | 27,831 | 127,568 | ||||||
Financiere de Tubize SA(a) | 1,549 | 108,324 | ||||||
GlaxoSmithKline plc | 147,440 | 3,024,234 | ||||||
GW Pharmaceuticals plc* (d) | 1 | 10 | ||||||
H Lundbeck A/S | 1,852 | 77,843 | ||||||
Haw Par Corp. Ltd. | 3,200 | 34,088 | ||||||
HEXO Corp.* (a) | 15,680 | 121,691 | ||||||
Hikma Pharmaceuticals plc | 7,104 | 163,505 | ||||||
Hisamitsu Pharmaceutical Co., Inc. | 1,900 | 80,350 | ||||||
Hutchison China MediTech Ltd.* | 715 | 42,784 | ||||||
Indivior plc* | 28,963 | 14,435 | ||||||
Ipsen SA | 770 | 89,832 | ||||||
JCR Pharmaceuticals Co. Ltd.(a) | 600 | 33,670 | ||||||
Kaken Pharmaceutical Co. Ltd. | 1,500 | 63,906 | ||||||
Kissei Pharmaceutical Co. Ltd. | 1,400 | 34,568 | ||||||
Knight Therapeutics, Inc.* | 11,684 | 63,406 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 5,000 | 96,790 | ||||||
Mayne Pharma Group Ltd.* | 148,797 | 73,312 | ||||||
Merck KGaA | 2,905 | 308,894 | ||||||
Mitsubishi Tanabe Pharma Corp. | 4,700 | 58,995 | ||||||
Mochida Pharmaceutical Co. Ltd.(a) | 3,200 | 148,256 | ||||||
Nippon Shinyaku Co. Ltd. | 2,000 | 137,553 | ||||||
Novartis AG (Registered) | 78,456 | 6,406,598 | ||||||
Novo Nordisk A/S, Class B | 52,350 | 2,557,914 | ||||||
Ono Pharmaceutical Co. Ltd. | 17,200 | 321,144 | ||||||
Orion OYJ, Class A | 1,474 | 49,227 | ||||||
Orion OYJ, Class B | 6,896 | 228,991 | ||||||
Otsuka Holdings Co. Ltd. | 17,900 | 637,891 | ||||||
Recipharm AB, Class B* (a) | 3,741 | 53,478 | ||||||
Recordati SpA | 2,359 | 95,148 |
See Accompanying Notes to the Financial Statements.
124 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Roche Holding AG – BR | 925 | $ | 242,007 | |||||
Roche Holding AG – Genusschein | 21,497 | 5,666,432 | ||||||
Rohto Pharmaceutical Co. Ltd. | 2,000 | 55,937 | ||||||
Sanofi(a) | 34,315 | 2,980,019 | ||||||
Santen Pharmaceutical Co. Ltd. | 16,700 | 254,005 | ||||||
Seikagaku Corp. | 1,800 | 19,749 | ||||||
Shionogi & Co. Ltd. | 9,600 | 558,201 | ||||||
Sosei Group Corp.* (a) | 67,200 | 879,709 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 10,700 | 235,376 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 2,500 | 230,752 | ||||||
Takeda Pharmaceutical Co. Ltd. | 47,217 | 1,743,266 | ||||||
Teva Pharmaceutical Industries Ltd.* | 46,057 | 708,058 | ||||||
Torii Pharmaceutical Co. Ltd. | 700 | 13,871 | ||||||
Towa Pharmaceutical Co. Ltd. | 1,200 | 29,425 | ||||||
Tsumura & Co. | 900 | 27,596 | ||||||
UCB SA | 4,150 | 328,912 | ||||||
Vifor Pharma AG | 1,511 | 197,512 | ||||||
Virbac SA* | 532 | 94,679 | ||||||
ZERIA Pharmaceutical Co. Ltd. | 1,800 | 31,758 | ||||||
41,010,217 | ||||||||
Professional Services – 1.0% | ||||||||
Adecco Group AG (Registered) | 10,956 | 629,191 | ||||||
AF POYRY AB, Class B* | 4,429 | 82,460 | ||||||
ALS Ltd.(a) | 13,503 | 75,462 | ||||||
Applus Services SA | 17,548 | 219,866 | ||||||
Benefit One, Inc. | 2,000 | 41,499 | ||||||
Bureau Veritas SA | 3,536 | 89,480 | ||||||
Capita plc* | 4,240 | 7,045 | ||||||
DKSH Holding AG | 660 | 40,513 | ||||||
en-japan, Inc. | 1,700 | 54,950 | ||||||
Experian plc | 30,544 | 885,966 |
Investments | Shares | Value | ||||||
Professional Services – (continued) | ||||||||
Funai Soken Holdings, Inc. | 2,700 | $ | 69,648 | |||||
Groupe Crit | 720 | 55,031 | ||||||
Hays plc | 34,264 | 67,717 | ||||||
Intertek Group plc | 4,482 | 312,598 | ||||||
Intertrust NV(b) | 9,280 | 175,866 | ||||||
IPH Ltd.(a) | 31,760 | 159,386 | ||||||
JAC Recruitment Co. Ltd. | 1,300 | 31,725 | ||||||
McMillan Shakespeare Ltd. | 18,234 | 170,307 | ||||||
Meitec Corp. | 2,400 | 111,192 | ||||||
Morneau Shepell, Inc. | 2,428 | 50,195 | ||||||
Nihon M&A Center, Inc. | 2,400 | 67,879 | ||||||
Nomura Co. Ltd. | 3,000 | 83,502 | ||||||
Outsourcing, Inc. | 11,100 | 144,811 | ||||||
Pagegroup plc | 20,728 | 145,379 | ||||||
Persol Holdings Co. Ltd. | 5,700 | 106,656 | ||||||
Randstad NV | 4,482 | 255,770 | ||||||
Recruit Holdings Co. Ltd. | 56,400 | 1,685,797 | ||||||
RELX plc | 63,080 | 1,446,500 | ||||||
RWS Holdings plc | 3,113 | 24,512 | ||||||
SEEK Ltd.(a) | 5,653 | 72,455 | ||||||
SGS SA (Registered) | 210 | 554,161 | ||||||
SMS Co. Ltd. | 3,200 | 61,256 | ||||||
Stantec, Inc. | 1,027 | 25,614 | ||||||
Synergie SA | 2,720 | 108,824 | ||||||
TechnoPro Holdings, Inc. | 1,900 | 113,446 | ||||||
Teleperformance* | 1,743 | 334,614 | ||||||
Thomson Reuters Corp.(a) | 7,387 | 454,631 | ||||||
Wolters Kluwer NV(a) | 9,794 | 682,496 | ||||||
World Holdings Co. Ltd. | 8,100 | 137,164 | ||||||
9,835,564 | ||||||||
Real Estate Management & Development – 3.0% | ||||||||
ADLER Real Estate AG | 7,360 | 105,579 | ||||||
ADO Group Ltd.* | 8,847 | 185,490 | ||||||
ADO Properties SA(b) | 2,400 | 125,877 | ||||||
Aedas Homes SAU* (b) | 486 | 12,091 | ||||||
Aeon Mall Co. Ltd. | 7,690 | 117,654 | ||||||
Africa Israel Properties Ltd.* | 4,400 | 119,292 | ||||||
Airport City Ltd.* | 18,019 | 298,732 | ||||||
Allreal Holding AG (Registered)* | 1,510 | 240,948 | ||||||
Alrov Properties and Lodgings Ltd. | 3,440 | 122,659 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 125 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Altus Group Ltd. | 1,792 | $ | 36,048 | |||||
Amot Investments Ltd. | 14,530 | 85,542 | ||||||
Aroundtown SA | 13,148 | 106,475 | ||||||
Ashtrom Properties Ltd. | 7,227 | 36,105 | ||||||
Atrium Ljungberg AB, Class B | 7,605 | 123,993 | ||||||
Aveo Group(a) | 304,241 | 456,118 | ||||||
Azrieli Group Ltd. | 2,518 | 143,206 | ||||||
Bayside Land Corp. | 144 | 70,500 | ||||||
Big Shopping Centers Ltd.* | 3,360 | 234,575 | ||||||
Blue Square Real Estate Ltd. | 1,280 | 50,937 | ||||||
Bukit Sembawang Estates Ltd. | 132,800 | 555,122 | ||||||
CA Immobilien Anlagen AG | 1,760 | 61,639 | ||||||
CapitaLand Ltd. | 136,400 | 353,726 | ||||||
Castellum AB | 18,177 | 326,474 | ||||||
Catena AB | 4,800 | 123,196 | ||||||
City Developments Ltd. | 21,400 | 140,550 | ||||||
Citycon OYJ | 66,514 | 679,080 | ||||||
CK Asset Holdings Ltd. | 166,000 | 1,333,010 | ||||||
CLS Holdings plc | 14,403 | 45,251 | ||||||
Colliers International Group, Inc. | 1,940 | 124,142 | ||||||
Corem Property Group AB, Class B* | 89,200 | 129,013 | ||||||
Corestate Capital Holding SA(a) | 9,213 | 369,119 | ||||||
Daejan Holdings plc | 8,881 | 671,507 | ||||||
Daibiru Corp. | 3,300 | 29,126 | ||||||
Daito Trust Construction Co. Ltd. | 1,900 | 253,589 | ||||||
Daiwa House Industry Co. Ltd. | 36,200 | 1,011,162 | ||||||
Deutsche Wohnen SE | 10,790 | 484,541 | ||||||
Dios Fastigheter AB | 76,858 | 546,514 | ||||||
DREAM Unlimited Corp., Class A | 73,372 | 407,986 | ||||||
Emperor International Holdings Ltd. | 574,000 | 170,472 | ||||||
Fabege AB | 12,308 | 170,700 | ||||||
Far East Consortium International Ltd.(a) | 925,969 | 439,060 | ||||||
Fastighets AB Balder, Class B* | 8,858 | 279,713 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
FastPartner AB(a) | 6,642 | $ | 48,068 | |||||
First Capital Realty, Inc. | 17,100 | 271,398 | ||||||
FirstService Corp. | 1,780 | 154,261 | ||||||
Gazit-Globe Ltd. | 3,498 | 28,239 | ||||||
Goldcrest Co. Ltd. | 9,100 | 119,372 | ||||||
Grainger plc | 33,054 | 108,589 | ||||||
Grand City Properties SA | 2,508 | 58,913 | ||||||
Great Eagle Holdings Ltd. | 8,646 | 40,721 | ||||||
GuocoLand Ltd. | 257,300 | 368,598 | ||||||
Heiwa Real Estate Co. Ltd. | 11,700 | 224,598 | ||||||
Hembla AB* | 6,592 | 124,396 | ||||||
Hemfosa Fastigheter AB | 10,627 | 87,750 | ||||||
Henderson Land Development Co. Ltd. | 54,763 | 337,147 | ||||||
Hiag Immobilien Holding AG | 355 | 45,464 | ||||||
HKR International Ltd. | 682,560 | 376,716 | ||||||
Ho Bee Land Ltd. | 56,000 | 104,907 | ||||||
Hufvudstaden AB, Class A | 2,610 | 43,432 | ||||||
Hulic Co. Ltd. | 4,900 | 42,148 | ||||||
Hysan Development Co. Ltd. | 19,000 | 106,317 | ||||||
Ichigo, Inc. | 14,300 | 45,965 | ||||||
IMMOFINANZ AG* (a) | 4,089 | 104,711 | ||||||
Industrial Buildings Corp. Ltd.* | 28,014 | 48,466 | ||||||
Intershop Holding AG | 131 | 64,150 | ||||||
Isras Investment Co. Ltd. | 312 | 44,968 | ||||||
Jerusalem Economy Ltd.* | 1,782 | 5,919 | ||||||
Jeudan A/S | 112 | 16,897 | ||||||
K Wah International Holdings Ltd. | 1,120,089 | 702,429 | ||||||
Kabuki-Za Co. Ltd. | 2,300 | 118,536 | ||||||
Kenedix, Inc. | 13,500 | 64,000 | ||||||
Kerry Properties Ltd. | 39,000 | 166,531 | ||||||
Klovern AB, Class B(a) | 383,792 | 518,758 | ||||||
Kowloon Development Co. Ltd. | 324,000 | 440,238 | ||||||
Kungsleden AB | 18,080 | 137,120 | ||||||
Lai Sun Development Co. Ltd.(a) | 159,009 | 248,078 | ||||||
Langham Hospitality Investments and Langham Hospitality Investments Ltd. | 143,500 | 58,714 | ||||||
LEG Immobilien AG | 2,739 | 318,471 |
See Accompanying Notes to the Financial Statements.
126 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Lendlease Group | 6,640 | $ | 62,158 | |||||
Leopalace21 Corp.(a) | 237,900 | 401,573 | ||||||
Melisron Ltd. | 3,992 | 201,318 | ||||||
Mitsubishi Estate Co. Ltd. | 36,000 | 606,222 | ||||||
Mitsui Fudosan Co. Ltd. | 29,200 | 673,009 | ||||||
Mobimo Holding AG (Registered) | 232 | 53,503 | ||||||
Morguard Corp. | 3,237 | 466,251 | ||||||
New World Development Co. Ltd. | 196,362 | 324,876 | ||||||
Nexity SA | 1,546 | 72,215 | ||||||
Nomura Real Estate Holdings, Inc. | 5,800 | 122,640 | ||||||
Norwegian Property ASA | 16,948 | 20,775 | ||||||
Open House Co. Ltd.(a) | 2,000 | 72,997 | ||||||
Oxley Holdings Ltd. | 449,988 | 107,439 | ||||||
PATRIZIA Immobilien AG | 3,248 | 67,595 | ||||||
Platzer Fastigheter Holding AB, Class B | 33,895 | 275,958 | ||||||
Property & Building Corp. Ltd. | 3,302 | 291,229 | ||||||
PSP Swiss Property AG (Registered) | 1,501 | 153,193 | ||||||
Purplebricks Group plc* (a) | 64,960 | 113,478 | ||||||
Relo Group, Inc. | 2,270 | 61,756 | ||||||
S IMMO AG | 8,160 | 178,326 | ||||||
Sagax AB, Class B | 5,743 | 101,125 | ||||||
SAMTY Co. Ltd.(a) | 25,200 | 325,818 | ||||||
Savills plc | 114,457 | 1,345,891 | ||||||
SEA Holdings Ltd. | 33,170 | 42,364 | ||||||
Sino Land Co. Ltd. | 195,823 | 344,451 | ||||||
Sirius Real Estate Ltd. | 90,571 | 74,976 | ||||||
St Modwen Properties plc | 2,689 | 14,408 | ||||||
Sumitomo Realty & Development Co. Ltd. | 11,300 | 416,286 | ||||||
Summit Real Estate Holdings Ltd. | 42,994 | 390,779 | ||||||
Sun Frontier Fudousan Co. Ltd. | 16,200 | 164,945 | ||||||
Sun Hung Kai Properties Ltd. | 86,435 | 1,491,740 | ||||||
Swire Pacific Ltd., Class A | 3,500 | 44,300 | ||||||
Swire Properties Ltd. | 47,600 | 193,242 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Swiss Prime Site AG (Registered)* | 2,656 | $ | 213,210 | |||||
TAG Immobilien AG | 7,739 | 173,809 | ||||||
TLG Immobilien AG | 2,046 | 60,190 | ||||||
Tokyo Tatemono Co. Ltd. | 16,000 | 179,717 | ||||||
Tokyu Fudosan Holdings Corp. | 20,000 | 112,413 | ||||||
Tosei Corp. | 8,200 | 67,882 | ||||||
Tricon Capital Group, Inc. | 124,168 | 983,043 | ||||||
United Engineers Ltd. | 77,800 | 144,603 | ||||||
United Industrial Corp. Ltd. | 5,656 | 13,172 | ||||||
Unizo Holdings Co. Ltd. | 22,800 | 402,467 | ||||||
UOL Group Ltd. | 26,999 | 150,347 | ||||||
Vonovia SE | 16,645 | 829,546 | ||||||
Wallenstam AB, Class B | 21,531 | 206,889 | ||||||
Wharf Holdings Ltd. (The) | 57,000 | 163,835 | ||||||
Wharf Real Estate Investment Co. Ltd. | 21,000 | 160,871 | ||||||
Wheelock & Co. Ltd. | 24,000 | 170,852 | ||||||
Wihlborgs Fastigheter AB | 8,338 | 110,772 | ||||||
Wing Tai Holdings Ltd. | 59,200 | 89,157 | ||||||
Wing Tai Properties Ltd. | 332,000 | 251,791 | ||||||
30,932,900 | ||||||||
Road & Rail – 1.7% | ||||||||
Aurizon Holdings Ltd. | 31,840 | 106,674 | ||||||
Canadian National Railway Co. | 23,738 | 2,195,924 | ||||||
Canadian Pacific Railway Ltd. | 4,814 | 1,074,203 | ||||||
Central Japan Railway Co. | 6,600 | 1,416,000 | ||||||
ComfortDelGro Corp. Ltd. | 139,500 | 275,680 | ||||||
DSV A/S | 6,059 | 559,364 | ||||||
East Japan Railway Co. | 10,900 | 1,024,184 | ||||||
Europcar Mobility Group(a) (b) | 81,864 | 682,124 | ||||||
Firstgroup plc* | 1,158,763 | 1,667,726 | ||||||
Fukuyama Transporting Co. Ltd. | 1,000 | 38,339 | ||||||
Go-Ahead Group plc (The) | 38,180 | 964,110 | ||||||
Hamakyorex Co. Ltd. | 10,700 | 394,375 | ||||||
Hankyu Hanshin Holdings, Inc. | 5,400 | 201,212 | ||||||
Hitachi Transport System Ltd. | 2,700 | 74,667 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 127 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Road & Rail – (continued) | ||||||||
Keikyu Corp.(a) | 6,000 | $ | 102,141 | |||||
Keio Corp. | 2,800 | 168,440 | ||||||
Keisei Electric Railway Co. Ltd. | 5,100 | 178,128 | ||||||
Kintetsu Group Holdings Co. Ltd. | 8,900 | 394,357 | ||||||
Kyushu Railway Co. | 2,100 | 68,256 | ||||||
Maruzen Showa Unyu Co. Ltd. | 11,800 | 311,382 | ||||||
MTR Corp. Ltd. | 44,381 | 264,179 | ||||||
Nankai Electric Railway Co. Ltd. | 3,000 | 81,616 | ||||||
National Express Group plc | 37,840 | 202,747 | ||||||
Nikkon Holdings Co. Ltd. | 2,600 | 61,093 | ||||||
Nippon Express Co. Ltd. | 3,700 | 202,649 | ||||||
Nishi-Nippon Railroad Co. Ltd. | 1,000 | 23,461 | ||||||
Odakyu Electric Railway Co. Ltd. | 16,800 | 394,300 | ||||||
Sankyu, Inc. | 2,333 | 111,439 | ||||||
Seibu Holdings, Inc. | 8,100 | 131,418 | ||||||
Seino Holdings Co. Ltd. | 7,500 | 101,616 | ||||||
Senko Group Holdings Co. Ltd. | 136,400 | 1,092,425 | ||||||
Sixt SE | 550 | 61,176 | ||||||
Sixt SE (Preference) | 1,518 | 116,194 | ||||||
Stagecoach Group plc | 410,933 | 705,534 | ||||||
Stef SA | 2,490 | 235,522 | ||||||
TFI International, Inc. | 6,708 | 219,411 | ||||||
Tobu Railway Co. Ltd. | 4,000 | 112,772 | ||||||
Tokyu Corp. | 22,400 | 364,434 | ||||||
Tonami Holdings Co. Ltd. | 5,000 | 273,401 | ||||||
Trancom Co. Ltd. | 600 | 34,747 | ||||||
Transport International Holdings Ltd. | 223,231 | 681,467 | ||||||
West Japan Railway Co. | 7,000 | 519,273 | ||||||
17,888,160 | ||||||||
Semiconductors & Semiconductor Equipment – 1.2% | ||||||||
Advantest Corp.(a) | 3,100 | 87,398 | ||||||
ams AG* (a) | 5,280 | 222,755 | ||||||
ASM International NV | 3,477 | 235,983 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
ASM Pacific Technology Ltd. | 5,000 | $ | 57,900 | |||||
ASML Holding NV(a) | 13,197 | 2,744,114 | ||||||
BE Semiconductor Industries NV(a) | 70,637 | 2,028,153 | ||||||
Dialog Semiconductor plc* | 7,304 | 282,403 | ||||||
Disco Corp.(a) | 1,700 | 291,232 | ||||||
Infineon Technologies AG | 31,208 | 735,345 | ||||||
IQE plc* (a) | 80,000 | 83,069 | ||||||
Japan Material Co. Ltd. | 3,900 | 57,743 | ||||||
Lasertec Corp. | 500 | 22,581 | ||||||
Melexis NV(a) | 495 | 39,664 | ||||||
Mimasu Semiconductor Industry Co. Ltd.(a) | 16,800 | 249,643 | ||||||
Nordic Semiconductor ASA* (a) | 153,633 | 728,413 | ||||||
NuFlare Technology, Inc.(a) | 3,300 | 204,148 | ||||||
Rohm Co. Ltd. | 3,800 | 278,070 | ||||||
Sanken Electric Co. Ltd. | 17,800 | 381,172 | ||||||
SCREEN Holdings Co. Ltd.(a) | 1,800 | 86,303 | ||||||
Shindengen Electric Manufacturing Co. Ltd.(a) | 8,300 | 340,198 | ||||||
Shinko Electric Industries Co. Ltd. | 5,800 | 50,983 | ||||||
Siltronic AG* | 2,114 | 206,970 | ||||||
SOITEC* (a) | 816 | 82,441 | ||||||
STMicroelectronics NV | 22,327 | 409,733 | ||||||
SUMCO Corp. | 20,900 | 273,975 | ||||||
Tokyo Electron Ltd. | 4,300 | 681,244 | ||||||
Tokyo Seimitsu Co. Ltd. | 35,000 | 1,011,897 | ||||||
Tower Semiconductor Ltd.* | 3,423 | 62,272 | ||||||
u-blox Holding AG* | 81 | 6,788 | ||||||
Ulvac, Inc. | 1,700 | 56,781 | ||||||
X-Fab Silicon Foundries SE* (b) | 11,600 | 69,291 | ||||||
12,068,662 | ||||||||
Software – 0.9% | ||||||||
Altium Ltd. | 5,461 | 129,918 | ||||||
AVEVA Group plc | 2,580 | 112,473 | ||||||
BlackBerry Ltd.* | 5,490 | 50,158 | ||||||
Blue Prism Group plc* | 4,832 | 116,536 | ||||||
Constellation Software, Inc. | 668 | 586,993 | ||||||
Dassault Systemes SE | 4,253 | 672,292 |
See Accompanying Notes to the Financial Statements.
128 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Descartes Systems Group, Inc. (The)* | 4,000 | $ | 159,084 | |||||
Enghouse Systems Ltd. | 3,344 | 81,412 | ||||||
Fuji Soft, Inc. | 1,600 | 63,066 | ||||||
Hilan Ltd. | 1,569 | 43,218 | ||||||
Infomart Corp.(a) | 5,500 | 79,852 | ||||||
IRESS Ltd. | 8,665 | 87,397 | ||||||
Justsystems Corp. | 5,600 | 160,395 | ||||||
Kinaxis, Inc.* | 1,436 | 78,152 | ||||||
Micro Focus International plc | 15,541 | 392,596 | ||||||
Miroku Jyoho Service Co. Ltd. | 1,000 | 26,828 | ||||||
Nemetschek SE | 770 | 141,953 | ||||||
Nice Ltd.* | 2,214 | 305,201 | ||||||
Open Text Corp. | 11,703 | 448,041 | ||||||
Oracle Corp. Japan | 800 | 54,662 | ||||||
RIB Software SE | 8,720 | 171,019 | ||||||
Sage Group plc (The) | 31,125 | 294,339 | ||||||
SAP SE | 32,536 | 4,177,941 | ||||||
SimCorp A/S | 2,552 | 249,965 | ||||||
Software AG | 1,320 | 50,238 | ||||||
Sophos Group plc(b) | 11,880 | 55,336 | ||||||
Systena Corp. | 5,200 | 62,097 | ||||||
Technology One Ltd. | 33,615 | 207,971 | ||||||
Temenos AG (Registered)* | 1,377 | 228,914 | ||||||
Trend Micro, Inc. | 2,500 | 124,804 | ||||||
WiseTech Global Ltd.(a) | 4,953 | 78,020 | ||||||
9,490,871 | ||||||||
Specialty Retail – 2.3% | ||||||||
ABC-Mart, Inc. | 700 | 43,493 | ||||||
Accent Group Ltd.(a) | 301,362 | 342,564 | ||||||
Alpen Co. Ltd.(a) | 10,600 | 164,270 | ||||||
AOKI Holdings, Inc. | 12,000 | 125,091 | ||||||
Arcland Sakamoto Co. Ltd. | 28,400 | 367,957 | ||||||
AT-Group Co. Ltd. | 16,600 | 301,371 | ||||||
Autobacs Seven Co. Ltd. | 2,100 | 36,579 | ||||||
Automotive Holdings Group Ltd.(a) | 305,108 | 515,401 | ||||||
BCA Marketplace plc | 702,512 | 1,888,441 | ||||||
Bic Camera, Inc. | 4,100 | 43,881 | ||||||
Bilia AB, Class A | 68,973 | 591,293 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
Carasso Motors Ltd. | 31,120 | $ | 147,952 | |||||
Card Factory plc | 330,755 | 882,212 | ||||||
CECONOMY AG* | 188,978 | 1,266,490 | ||||||
Chiyoda Co. Ltd. | 2,800 | 44,247 | ||||||
Chow Sang Sang Holdings International Ltd. | 319,000 | 529,403 | ||||||
Clas Ohlson AB, Class B(a) | 11,920 | 98,803 | ||||||
DCM Holdings Co. Ltd.(a) | 26,900 | 265,921 | ||||||
Delek Automotive Systems Ltd. | 38,245 | 171,736 | ||||||
Dixons Carphone plc | 877 | 1,659 | ||||||
Dunelm Group plc | 324 | 3,611 | ||||||
EDION Corp. | 11,500 | 97,266 | ||||||
Fast Retailing Co. Ltd. | 1,900 | 1,096,242 | ||||||
Fenix Outdoor International AG* | 369 | 37,262 | ||||||
Fielmann AG | 607 | 43,061 | ||||||
Fnac Darty SA* | 14,433 | 1,267,316 | ||||||
Geo Holdings Corp. | 29,300 | 398,033 | ||||||
Giordano International Ltd. | 1,106,000 | 525,834 | ||||||
GrandVision NV(b) | 11,205 | 251,902 | ||||||
Halfords Group plc | 205,176 | 624,828 | ||||||
Hennes & Mauritz AB, Class B | 29,714 | 517,529 | ||||||
Hikari Tsushin, Inc. | 600 | 110,653 | ||||||
Hornbach Baumarkt AG | 1,840 | 35,468 | ||||||
Hornbach Holding AG & Co. KGaA | 6,723 | 364,291 | ||||||
Industria de Diseno Textil SA | 36,686 | 1,108,845 | ||||||
JBHi-Fi Ltd.(a) | 9,194 | 166,763 | ||||||
JD Sports Fashion plc | 8,827 | 72,427 | ||||||
JINS, Inc. | 900 | 48,081 | ||||||
Joshin Denki Co. Ltd. | 31,000 | 663,560 | ||||||
Joyful Honda Co. Ltd.(a) | 8,400 | 97,293 | ||||||
Kathmandu Holdings Ltd. | 107,190 | 167,990 | ||||||
Kingfisher plc | 68,983 | 237,504 | ||||||
Kohnan Shoji Co. Ltd. | 24,900 | 549,756 | ||||||
Komeri Co. Ltd. | 1,000 | 21,037 | ||||||
K’s Holdings Corp. | 6,100 | 54,387 | ||||||
Leon’s Furniture Ltd. | 16,766 | 180,971 | ||||||
LIXIL VIVA Corp. | 16,600 | 195,101 | ||||||
L’Occitane International SA | 81,000 | 145,576 | ||||||
Luk Fook Holdings International Ltd.(a) | 16,672 | 59,714 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 129 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Maisons du Monde SA(b) | 40,247 | $ | 865,110 | |||||
Mekonomen AB(a) | 20,335 | 148,446 | ||||||
Nishimatsuya Chain Co. Ltd. | 1,300 | 10,342 | ||||||
Nitori Holdings Co. Ltd. | 2,300 | 273,625 | ||||||
Nojima Corp. | 33,200 | 569,058 | ||||||
PAL GROUP Holdings Co. Ltd. | 1,800 | 55,030 | ||||||
Pets at Home Group plc(a) | 407,696 | 804,680 | ||||||
Premier Investments Ltd. | 6,508 | 78,238 | ||||||
Sa Sa International Holdings Ltd.(a) | 204,700 | 69,404 | ||||||
Shimachu Co. Ltd. | 1,300 | 31,293 | ||||||
Shimamura Co. Ltd. | 1,700 | 126,536 | ||||||
Super Retail Group Ltd.(a) | 103,833 | 632,898 | ||||||
Superdry plc(a) | 68,045 | 457,727 | ||||||
T-Gaia Corp. | 7,600 | 123,238 | ||||||
United Arrows Ltd. | 4,400 | 138,864 | ||||||
USS Co. Ltd. | 6,200 | 118,350 | ||||||
Vivo Energy plc(b) | 330,008 | 559,279 | ||||||
VT Holdings Co. Ltd.(a) | 61,800 | 248,587 | ||||||
WH Smith plc | 3,339 | 89,147 | ||||||
World Co. Ltd. | 16,800 | 324,159 | ||||||
Xebio Holdings Co. Ltd. | 38,600 | 405,148 | ||||||
XXL ASA(a) (b) | 63,181 | 192,155 | ||||||
Yamada Denki Co. Ltd.(a) | 27,000 | 127,758 | ||||||
Yellow Hat Ltd. | 33,400 | 421,042 | ||||||
23,841,179 | ||||||||
Technology Hardware, Storage & Peripherals – 0.5% | ||||||||
Brother Industries Ltd. | 8,200 | 160,724 | ||||||
Canon, Inc. | 53,400 | 1,481,056 | ||||||
Eizo Corp. | 1,400 | 53,549 | ||||||
Elecom Co. Ltd. | 5,700 | 190,384 | ||||||
FUJIFILM Holdings Corp. | 16,600 | 772,655 | ||||||
Konica Minolta, Inc. | 18,900 | 189,042 | ||||||
Logitech International SA (Registered) | 3,669 | 143,447 | ||||||
MCJ Co. Ltd. | 15,400 | 110,064 | ||||||
NEC Corp. | 12,000 | 403,502 | ||||||
Neopost SA | 29,548 | 723,882 | ||||||
Ricoh Co. Ltd. | 28,300 | 285,350 | ||||||
Riso Kagaku Corp. | 1,700 | 28,131 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
S&T AG* | 228 | $ | 6,143 | |||||
Seiko Epson Corp. | 8,300 | 132,576 | ||||||
Toshiba TEC Corp. | 3,800 | 104,745 | ||||||
4,785,250 | ||||||||
Textiles, Apparel & Luxury Goods – 1.4% | ||||||||
adidas AG | 5,727 | 1,470,421 | ||||||
Asics Corp. | 12,200 | 149,522 | ||||||
Brunello Cucinelli SpA | 1,556 | 56,430 | ||||||
Burberry Group plc | 14,525 | 381,929 | ||||||
Cie Financiere Richemont SA (Registered) | 14,193 | 1,037,663 | ||||||
Coats Group plc | 98,856 | 111,347 | ||||||
Crystal International Group Ltd.(b) | 630,000 | 305,147 | ||||||
Delta-Galil Industries Ltd. | 7,636 | 229,864 | ||||||
Descente Ltd.(a) | 2,400 | 50,834 | ||||||
EssilorLuxottica SA – IM* | 2,578 | 313,619 | ||||||
EssilorLuxottica SA – MO* | 5,888 | 715,957 | ||||||
Gildan Activewear, Inc. | 9,296 | 341,378 | ||||||
Goldwin, Inc. | 1,200 | 190,922 | ||||||
Gunze Ltd. | 700 | 29,728 | ||||||
Hermes International | 978 | 687,439 | ||||||
HUGO BOSS AG | 511 | 35,598 | ||||||
Japan Wool Textile Co. Ltd. (The) | 53,500 | 430,882 | ||||||
Kering SA | 2,407 | 1,421,596 | ||||||
Kurabo Industries Ltd. | 19,000 | 356,714 | ||||||
Li & Fung Ltd. | 800,000 | 132,562 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 8,383 | 3,279,265 | ||||||
Moncler SpA | 3,061 | 125,452 | ||||||
Pandora A/S | 8,248 | 345,686 | ||||||
Puma SE | 208 | 128,558 | ||||||
Regina Miracle International Holdings Ltd.(b) | 20,000 | 16,111 | ||||||
Samsonite International SA* (b) | 36,600 | 104,966 | ||||||
Seiko Holdings Corp.(a) | 25,200 | 569,503 | ||||||
Seiren Co. Ltd. | 11,200 | 167,133 | ||||||
Stella International Holdings Ltd. | 488,000 | 867,097 | ||||||
Swatch Group AG (The) | 1,411 | 430,916 |
See Accompanying Notes to the Financial Statements.
130 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Swatch Group AG (The) (Registered) | 1,997 | $ | 117,194 | |||||
Tod’s SpA(a) | 245 | 12,032 | ||||||
TSI Holdings Co. Ltd. | 4,800 | 29,823 | ||||||
Wacoal Holdings Corp. | 1,500 | 36,983 | ||||||
Yondoshi Holdings, Inc. | 1,400 | 30,759 | ||||||
Yue Yuen Industrial Holdings Ltd. | 22,000 | 71,086 | ||||||
14,782,116 | ||||||||
Thrifts & Mortgage Finance – 0.6% | ||||||||
Aareal Bank AG | 3,120 | 108,779 | ||||||
Charter Court Financial Services Group plc(b) | 104,791 | 484,968 | ||||||
Deutsche Pfandbriefbank AG(b) | 107,817 | 1,499,507 | ||||||
Equitable Group, Inc. | 7,885 | 428,071 | ||||||
First National Financial Corp. | 12,782 | 305,582 | ||||||
Genworth Mortgage Insurance Australia Ltd.(a) | 47,182 | 79,370 | ||||||
Home Capital Group, Inc.* | 57,602 | 811,018 | ||||||
OneSavings Bank plc | 144,918 | 821,812 | ||||||
Paragon Banking Group plc | 250,826 | 1,499,573 | ||||||
6,038,680 | ||||||||
Tobacco – 0.6% | ||||||||
British American Tobacco plc | 74,285 | 2,895,565 | ||||||
Imperial Brands plc | 47,959 | 1,523,030 | ||||||
Japan Tobacco, Inc. | 39,900 | 922,850 | ||||||
Scandinavian Tobacco Group A/S(b) | 49,214 | 585,472 | ||||||
Swedish Match AB | 6,474 | 315,024 | ||||||
6,241,941 | ||||||||
Trading Companies & Distributors – 2.2% | ||||||||
AddTech AB, Class B | 4,329 | 105,415 | ||||||
Advan Co. Ltd. | 6,400 | 59,475 | ||||||
Ashtead Group plc | 20,086 | 555,648 | ||||||
BayWa AG | 6,830 | 200,927 | ||||||
Beijer Ref AB | 3,795 | 80,157 | ||||||
Brenntag AG | 2,605 | 140,307 | ||||||
Bunzl plc | 13,446 | 404,742 | ||||||
Cramo OYJ | 42,081 | 884,253 | ||||||
Diploma plc | 6,602 | 137,707 |
Investments | Shares | Value | ||||||
Trading Companies & Distributors – (continued) | ||||||||
Emeco Holdings Ltd.* | 34,080 | $ | 49,893 | |||||
Ferguson plc | 6,723 | 476,785 | ||||||
Finning International, Inc.(a) | 387 | 6,919 | ||||||
Grafton Group plc | 178,533 | 2,052,807 | ||||||
Hanwa Co. Ltd. | 4,200 | 120,485 | ||||||
Howden Joinery Group plc | 35,048 | 232,107 | ||||||
IMCD NV | 2,440 | 196,885 | ||||||
Inaba Denki Sangyo Co. Ltd. | 800 | 32,503 | ||||||
Inabata & Co. Ltd. | 37,400 | 511,763 | ||||||
Indutrade AB* | 2,198 | 67,003 | ||||||
ITOCHU Corp. | 84,100 | 1,510,213 | ||||||
Japan Pulp & Paper Co. Ltd. | 9,800 | 374,402 | ||||||
Kamei Corp. | 16,000 | 159,461 | ||||||
Kanamoto Co. Ltd. | 34,323 | 811,117 | ||||||
Kanematsu Corp. | 81,500 | 900,799 | ||||||
Kloeckner & Co. SE | 52,705 | 369,461 | ||||||
Marubeni Corp. | 102,600 | 732,456 | ||||||
Mitsubishi Corp. | 91,900 | 2,521,629 | ||||||
Mitsui & Co. Ltd. | 100,400 | 1,617,218 | ||||||
MonotaRO Co. Ltd.(a) | 2,800 | 64,409 | ||||||
Nagase & Co. Ltd.(a) | 4,900 | 74,396 | ||||||
Nippon Steel Trading Corp. | 600 | 25,024 | ||||||
Nishio Rent All Co. Ltd. | 17,700 | 489,481 | ||||||
Okaya & Co. Ltd. | 2,000 | 165,208 | ||||||
Ramirent OYJ | 51,294 | 359,282 | ||||||
Reece Ltd.(a) | 5,999 | 43,575 | ||||||
Rexel SA | 4,641 | 62,310 | ||||||
Richelieu Hardware Ltd. | 1,340 | 20,730 | ||||||
Russel Metals, Inc. | 61,088 | 1,071,719 | ||||||
Seven Group Holdings Ltd.(a) | 10,640 | 146,709 | ||||||
SIG plc | 590,047 | 1,164,591 | ||||||
Sojitz Corp.(a) | 68,100 | 234,185 | ||||||
Sumitomo Corp. | 60,300 | 860,578 | ||||||
Toromont Industries Ltd. | 3,554 | 184,067 | ||||||
Toyota Tsusho Corp. | 17,500 | 578,227 | ||||||
Travis Perkins plc | 22,710 | 413,742 | ||||||
Yamazen Corp. | 76,900 | 804,386 | ||||||
Yuasa Trading Co. Ltd. | 16,600 | 471,731 | ||||||
22,546,887 | ||||||||
Transportation Infrastructure – 0.6% | ||||||||
Aena SME SA(b) | 2,075 | 384,514 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 131 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Aeroports de Paris | 1,529 | $ | 311,181 | |||||
ASTM SpA | 36,703 | 933,720 | ||||||
Atlantia SpA | 19,090 | 520,306 | ||||||
Atlas Arteria Ltd.(a) | 40,499 | 199,537 | ||||||
Auckland International Airport Ltd. | 22,540 | 119,804 | ||||||
BBA Aviation plc | 31,120 | 110,349 | ||||||
Enav SpA(b) | 12,657 | 68,994 | ||||||
Flughafen Zurich AG (Registered) | 320 | 52,695 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 890 | 73,650 | ||||||
Getlink SE | 16,715 | 268,811 | ||||||
Hamburger Hafen und Logistik AG | 1,220 | 30,626 | ||||||
Hutchison Port Holdings Trust | 461,700 | 108,500 | ||||||
James Fisher & Sons plc | 1,322 | 33,951 | ||||||
Kamigumi Co. Ltd. | 6,500 | 154,774 | ||||||
Nissin Corp. | 14,500 | 248,274 | ||||||
Port of Tauranga Ltd. | 5,225 | 20,559 | ||||||
Qube Holdings Ltd. | 113,817 | 226,712 | ||||||
SATS Ltd. | 19,000 | 73,002 | ||||||
Societa Iniziative Autostradali e Servizi SpA | 4,167 | 68,462 | ||||||
Sumitomo Warehouse Co. Ltd. (The) | 63,100 | 804,507 | ||||||
Sydney Airport | 52,290 | 280,449 | ||||||
Transurban Group | 69,423 | 656,724 | ||||||
Westshore Terminals Investment Corp.(a) | 5,020 | 78,442 | ||||||
5,828,543 | ||||||||
Water Utilities – 0.1% | ||||||||
Pennon Group plc | 2,760 | 26,935 | ||||||
Severn Trent plc | 11,371 | 301,813 | ||||||
United Utilities Group plc | 40,684 | 439,576 | ||||||
768,324 | ||||||||
Wireless Telecommunication Services – 0.9% | ||||||||
1&1 Drillisch AG | 2,659 | 99,053 | ||||||
Cellcom Israel Ltd.* | 21,851 | 91,324 | ||||||
Freenet AG | 2,198 | 51,483 |
Investments | Shares | Value | ||||||
Wireless Telecommunication Services – (continued) | ||||||||
Hutchison Telecommunications Hong Kong Holdings Ltd. | 566,000 | $ | 239,519 | |||||
KDDI Corp. | 93,100 | 2,123,641 | ||||||
Millicom International Cellular SA, SDR | 415 | 24,249 | ||||||
NTT DOCOMO, Inc. | 43,800 | 947,968 | ||||||
Okinawa Cellular Telephone Co. | 2,800 | 87,614 | ||||||
Rogers Communications, Inc., Class B | 12,865 | 645,067 | ||||||
SmarTone Telecommunications Holdings Ltd. | 4,740 | 4,936 | ||||||
SoftBank Group Corp. | 26,541 | 2,753,592 | ||||||
StarHub Ltd. | 137,700 | 156,799 | ||||||
Tele2 AB, Class B | 13,980 | 186,316 | ||||||
VEON Ltd. | 48,560 | 115,917 | ||||||
Vodafone Group plc | 770,107 | 1,425,609 | ||||||
8,953,087 | ||||||||
Total Common Stocks (Cost $915,873,158) |
| 1,012,811,184 | ||||||
CLOSED END FUNDS – 0.1% | ||||||||
Capital Markets – 0.0%(e) | ||||||||
HBM Healthcare Investments AG Class A* | 1,660 | 271,725 | ||||||
Equity Real Estate Investment Trusts (REITs) – 0.1% | ||||||||
UK Commercial Property REIT Ltd.(a) | 604,074 | 696,939 | ||||||
Total Closed End Funds (Cost $882,409) |
| 968,664 | ||||||
Number of Rights | ||||||||
RIGHTS – 0.0%(e) | ||||||||
Equity Real Estate Investment Trusts (REITs) – 0.0%(e) | ||||||||
Aedifica SA, expiring 5/6/2019, price 68.00 EUR* | 1,145 | 5,004 |
See Accompanying Notes to the Financial Statements.
132 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Investments | Number of Rights | Value | ||||||
RIGHTS – (continued) | ||||||||
Metals & Mining – 0.0%(e) | ||||||||
Pan American Silver Corp., CVR*‡ (a) (d) | 41,840 | $ | 21,757 | |||||
Total Rights (Cost $–) |
| 26,761 | ||||||
Shares | ||||||||
PREFERRED STOCKS – 0.0%(e) | ||||||||
Aerospace & Defense – 0.0%(e) | ||||||||
Rolls-Royce Holdings plc* (d) | 3,494,549 | 4,556 | ||||||
Number of Warrants | ||||||||
WARRANTS – 0.0% | ||||||||
Pharmaceuticals – 0.0% | ||||||||
Australis Capital, Inc., expiring 8/23/2019, price 0.25 CAD* ‡ (d) | 597 | — | ||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(f) – 1.4% | ||||||||
REPURCHASE AGREEMENTS – 1.4% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $13,485,148, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $13,754,890 | $ | 13,484,118 | 13,484,118 |
Investments | Principal Amount | Value | ||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Societe Generale, 2.53%, dated 4/30/2019, due 5/1/2019, repurchase price $1,000,070, collateralized by various U.S. Treasury Securities, ranging from 0.38% – 2.88%, maturing 2/15/2020 – 8/15/2026; Common Stocks; total market value $1,115,059 | $ | 1,000,000 | $ | 1,000,000 | ||||
14,484,118 | ||||||||
Total Securities Lending Reinvestments (Cost $14,484,118) |
| 14,484,118 | ||||||
Total Investments – 99.4% (Cost $931,244,195) |
| 1,028,295,283 | ||||||
Other Assets Less Liabilities – 0.6% |
| 6,588,954 | ||||||
NET ASSETS – 100.0% |
| $ | 1,034,884,237 |
* | Non-income producing security. |
‡ | Value determined using significant unobservable inputs. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $97,728,258, collateralized in the form of cash with a value of $14,484,118 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $29,043,944 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 9, 2019 – November 15, 2048 and $61,204,563 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from July 15, 2019 – September 20, 2117; a total value of $104,732,625. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Securities exempt from registration under Rule 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. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 133 |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
(d) | Security fair valued as of April 30, 2019 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2019 amounted to $373,635, which represents approximately 0.04% of net assets of the Fund. |
(e) | Represents less than 0.05% of net assets. |
(f) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $14,484,118. |
Percentages shown are based on Net Assets.
Abbreviations
CAD – Canadian Dollar
CHDI – Clearing House Electronic Subregister System (CHESS) Depository Interest
CVA – Dutch Certification
CVR – Contingent Value Rights
DI – Depositary Interest
EUR – Euro
FDR – Fiduciary Depositary Receipt
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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 149,692,462 | ||
Aggregate gross unrealized depreciation | (59,131,105 | ) | ||
Net unrealized appreciation | $ | 90,561,357 | ||
Federal income tax cost | $ | 938,478,629 |
Futures Contracts
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index | 171 | 06/21/2019 | EUR | $ | 6,615,402 | $ | 372,995 | |||||||||||||
FTSE 100 Index | 46 | 06/21/2019 | GBP | 4,420,534 | 126,560 | |||||||||||||||
Hang Seng Index | 2 | 05/30/2019 | HKD | 375,608 | (5,527 | ) | ||||||||||||||
S&P/TSX 60 Index | 15 | 06/20/2019 | CAD | 2,215,433 | 67,342 | |||||||||||||||
SGX Nikkei 225 Index | 55 | 06/13/2019 | JPY | 5,512,346 | 179,155 | |||||||||||||||
SPI 200 Index | 16 | 06/20/2019 | AUD | 1,774,828 | 35,623 | |||||||||||||||
$ | 776,148 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Forward Foreign Currency Contracts
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2019:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||
USD | 330,000 | Morgan Stanley | AUD | 464,974 | 06/19/2019 | $ | 2,336 | |||||||||||||||||
USD | 112,369 | Morgan Stanley | CHF | 112,030 | 06/19/2019 | 1,902 | ||||||||||||||||||
USD | 116,782 | Citibank NA | DKK | 763,595 | 06/19/2019 | 1,633 | ||||||||||||||||||
USD | 800,000 | Citibank NA | JPY | 87,743,272 | 06/19/2019 | 8,994 | ||||||||||||||||||
USD | 2,828 | Societe Generale | SGD | 3,828 | 06/19/2019 | 13 | ||||||||||||||||||
Total unrealized appreciation |
| $ | 14,878 |
See Accompanying Notes to the Financial Statements.
134 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund (cont.)
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||
AUD | 277,587 | JPMorgan Chase Bank | USD | 196,599 | 06/19/2019 | $ | (985 | ) | ||||||||||||||||
CAD | 141,233 | Citibank NA | USD | 106,207 | 06/19/2019 | (1,083 | ) | |||||||||||||||||
EUR | 799,132 | JPMorgan Chase Bank | USD | 910,734 | 06/19/2019 | (11,338 | ) | |||||||||||||||||
EUR | 623,971 | Toronto-Dominion Bank (The) | USD | 707,000 | 06/19/2019 | (4,742 | ) | |||||||||||||||||
GBP | 664,454 | Morgan Stanley | USD | 881,850 | 06/19/2019 | (13,359 | ) | |||||||||||||||||
GBP | 261,983 | Toronto-Dominion Bank (The) | USD | 347,000 | 06/19/2019 | (4,568 | ) | |||||||||||||||||
JPY | 143,493,057 | JPMorgan Chase Bank | USD | 1,297,932 | 06/19/2019 | (4,341 | ) | |||||||||||||||||
SEK | 2,390,159 | Citibank NA | USD | 258,321 | 06/19/2019 | (5,907 | ) | |||||||||||||||||
Total unrealized depreciation |
| $ | (46,323 | ) | ||||||||||||||||||||
Net unrealized depreciation |
| $ | (31,445 | ) |
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
DKK – Danish Krone
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
JPY – Japanese Yen
SEK – Swedish Krona
SGD – Singapore Dollar
USD – US Dollar
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2019:
Australia | 5.1 | % | ||
Austria | 0.3 | |||
Belgium | 1.2 | |||
Canada | 8.8 | |||
Denmark | 1.2 | |||
Finland | 1.0 | |||
France | 7.4 | |||
Germany | 6.5 | |||
Hong Kong | 3.1 | |||
Ireland | 0.4 | |||
Israel | 0.9 | |||
Italy | 3.1 | |||
Japan | 26.3 | |||
Netherlands | 2.9 | |||
New Zealand | 0.4 | |||
Norway | 1.2 | |||
Portugal | 0.3 | |||
Singapore | 1.2 | |||
Spain | 2.5 | |||
Sweden | 2.7 | |||
Switzerland | 5.0 | |||
United Kingdom | 16.5 | |||
Other1 | 2.0 | |||
100.0 | % |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 135 |
Schedule of Investments
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.8% | ||||||||
Aerospace & Defense – 0.1% | ||||||||
Aselsan Elektronik Sanayi ve Ticaret A/S | 18,009 | $ | 61,664 | |||||
AviChina Industry & Technology Co. Ltd., Class H(a) | 114,000 | 66,987 | ||||||
Bharat Electronics Ltd. | 17,280 | 21,652 | ||||||
Embraer SA | 32,700 | 162,577 | ||||||
Hanwha Aerospace Co. Ltd.* | 1,767 | 46,741 | ||||||
Korea Aerospace Industries Ltd. | 3,318 | 99,413 | ||||||
LIG Nex1 Co. Ltd. | 430 | 13,785 | ||||||
United Aircraft Corp. PJSC* ^ | 25,155,036 | 272,673 | ||||||
745,492 | ||||||||
Air Freight & Logistics – 0.4% | ||||||||
Aramex PJSC | 24,595 | 31,806 | ||||||
BEST, Inc., ADR* (a) | 4,700 | 27,871 | ||||||
GD Express Carrier Bhd. | 51,838 | 4,012 | ||||||
Gulf Warehousing Co. | 39,894 | 498,613 | ||||||
Hyundai Glovis Co. Ltd. | 2,180 | 297,659 | ||||||
Imperial Logistics Ltd. | 17,331 | 75,435 | ||||||
Kerry TJ Logistics Co. Ltd. | 14,000 | 16,650 | ||||||
Pos Malaysia Bhd. | 20,800 | 9,206 | ||||||
Sinotrans Ltd., Class H | 3,052,000 | 1,252,637 | ||||||
ZTO Express Cayman, Inc., ADR | 17,331 | 345,407 | ||||||
2,559,296 | ||||||||
Airlines – 0.9% | ||||||||
Aegean Airlines SA | 37,169 | 351,154 | ||||||
Aeroflot PJSC | 19,139 | 28,547 | ||||||
Air Arabia PJSC* | 3,221,931 | 894,701 | ||||||
Air China Ltd., Class H | 212,000 | 252,658 | ||||||
AirAsia Group Bhd. | 183,000 | 120,834 | ||||||
Asiana Airlines, Inc.* | 143,880 | 814,148 | ||||||
Azul SA (Preference)* | 10,900 | 93,816 | ||||||
Bangkok Airways PCL, NVDR | 52,000 | 19,220 | ||||||
Cebu Air, Inc. | 284,490 | 447,650 | ||||||
China Airlines Ltd. | 87,000 | 27,591 | ||||||
China Eastern Airlines Corp. Ltd., Class H | 132,000 | 93,716 |
Investments | Shares | Value | ||||||
Airlines – (continued) | ||||||||
China Southern Airlines Co. Ltd., Class H(a) | 218,000 | $ | 190,063 | |||||
Eva Airways Corp. | 138,661 | 67,982 | ||||||
Gol Linhas Aereas Inteligentes SA (Preference)* | 3,500 | 20,183 | ||||||
Grupo Aeromexico SAB de CV* | 10,400 | 10,623 | ||||||
Hanjin Kal Corp. | 5,014 | 158,814 | ||||||
InterGlobe Aviation Ltd.(b) | 5,142 | 112,149 | ||||||
Jeju Air Co. Ltd. | 755 | 26,402 | ||||||
Jin Air Co. Ltd. | 16,786 | 354,932 | ||||||
Korean Air Lines Co. Ltd. | 4,578 | 129,915 | ||||||
Latam Airlines Group SA | 12,862 | 127,110 | ||||||
SpiceJet Ltd.* | 7,072 | 13,254 | ||||||
Thai Airways International PCL, NVDR* | 915,600 | 364,232 | ||||||
Turk Hava Yollari AO* | 69,542 | 166,705 | ||||||
Tway Air Co. Ltd.* | 27,250 | 186,387 | ||||||
5,072,786 | ||||||||
Auto Components – 1.3% | ||||||||
Apollo Tyres Ltd. | 14,352 | 42,517 | ||||||
Balkrishna Industries Ltd. | 4,462 | 58,657 | ||||||
Bharat Forge Ltd. | 10,573 | 71,788 | ||||||
Bosch Ltd. | 327 | 84,714 | ||||||
Cayman Engley Industrial Co. Ltd. | 58,796 | 233,083 | ||||||
Ceat Ltd. | 936 | 14,184 | ||||||
Cheng Shin Rubber Industry Co. Ltd. | 109,000 | 145,505 | ||||||
China First Capital Group Ltd.* | 158,000 | 66,459 | ||||||
Cub Elecparts, Inc. | 2,811 | 24,971 | ||||||
Endurance Technologies Ltd.(b) | 1,456 | 24,636 | ||||||
Exide Industries Ltd. | 5,676 | 17,476 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class H(b) | 14,400 | 50,567 | ||||||
Halla Holdings Corp. | 11,772 | 446,432 | ||||||
Hankook Tire Co. Ltd. | 8,451 | 287,572 | ||||||
Hanon Systems | 8,720 | 93,683 | ||||||
Hota Industrial Manufacturing Co. Ltd. | 9,826 | 35,773 | ||||||
Hyundai Mobis Co. Ltd. | 6,867 | 1,366,757 |
See Accompanying Notes to the Financial Statements.
136 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Hyundai Wia Corp. | 1,853 | $ | 79,155 | |||||
Kenda Rubber Industrial Co. Ltd. | 29,307 | 28,595 | ||||||
Kumho Tire Co., Inc.* | 3,552 | 13,744 | ||||||
Mahindra CIE Automotive Ltd.* | 6,379 | 20,878 | ||||||
Mando Corp. | 3,161 | 90,380 | ||||||
Minda Industries Ltd. | 5,154 | 26,954 | ||||||
Minth Group Ltd. | 28,000 | 88,332 | ||||||
Motherson Sumi Systems Ltd. | 41,856 | 88,161 | ||||||
MRF Ltd. | 36 | 27,383 | ||||||
Nan Kang Rubber Tire Co. Ltd. | 20,000 | 22,912 | ||||||
Nemak SAB de CV(b) | 62,400 | 33,951 | ||||||
Nexen Tire Corp. | 50,249 | 432,310 | ||||||
Nexteer Automotive Group Ltd. | 44,000 | 68,871 | ||||||
S&T Motiv Co. Ltd. | 13,516 | 440,833 | ||||||
Sebang Global Battery Co. Ltd. | 8,938 | 365,355 | ||||||
SL Corp. | 32,591 | 677,962 | ||||||
Sri Trang Agro-Industry PCL, NVDR | 20,800 | 8,535 | ||||||
Sundaram Finance Holdings Ltd. | 1,310 | 1,505 | ||||||
Sundram Fasteners Ltd. | 3,224 | 25,584 | ||||||
Tianneng Power International Ltd.(a) | 1,002,000 | 940,006 | ||||||
Tong Yang Industry Co. Ltd. | 42,400 | 60,511 | ||||||
Tupy SA | 98,100 | 434,587 | ||||||
WABCO India Ltd. | 172 | 15,474 | ||||||
Xinyi Glass Holdings Ltd. | 244,000 | 278,665 | ||||||
7,335,417 | ||||||||
Automobiles – 1.8% | ||||||||
Astra International Tbk. PT | 948,300 | 507,424 | ||||||
BAIC Motor Corp. Ltd., Class H(b) | 2,234,500 | 1,566,491 | ||||||
Bajaj Auto Ltd. | 3,379 | 144,971 | ||||||
Brilliance China Automotive Holdings Ltd. | 280,000 | 308,002 | ||||||
BYD Co. Ltd., Class H(a) | 31,000 | 211,003 | ||||||
China Motor Corp. | 61,000 | 54,780 | ||||||
Chongqing Changan Automobile Co. Ltd., Class B | 991,900 | 519,630 |
Investments | Shares | Value | ||||||
Automobiles – (continued) | ||||||||
Dongfeng Motor Group Co. Ltd., Class H | 256,000 | $ | 248,319 | |||||
DRB-Hicom Bhd. | 7,300 | 3,849 | ||||||
Eicher Motors Ltd. | 654 | 191,519 | ||||||
Ford Otomotiv Sanayi A/S | 6,454 | 56,977 | ||||||
Geely Automobile Holdings Ltd. | 545,000 | 1,093,418 | ||||||
Great Wall Motor Co. Ltd., Class H(a) | 327,000 | 265,505 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H | 268,400 | 288,400 | ||||||
Hero MotoCorp Ltd. | 4,469 | 161,393 | ||||||
Hyundai Motor Co. | 14,388 | 1,705,892 | ||||||
Hyundai Motor Co. (2nd Preference) | 3,597 | 269,432 | ||||||
Hyundai Motor Co. (3rd Preference) | 312 | 20,512 | ||||||
Hyundai Motor Co. (Preference) | 2,071 | 143,604 | ||||||
Kia Motors Corp. | 26,487 | 1,026,013 | ||||||
Mahindra & Mahindra Ltd. | 27,795 | 257,874 | ||||||
Maruti Suzuki India Ltd. | 5,559 | 532,804 | ||||||
Oriental Holdings Bhd. | 359,700 | 590,728 | ||||||
Sanyang Motor Co. Ltd. | 51,000 | 33,256 | ||||||
Ssangyong Motor Co.* | 771 | 3,485 | ||||||
Tata Motors Ltd.* | 45,126 | 139,036 | ||||||
Tata Motors Ltd., Class A* | 25,527 | 37,545 | ||||||
Tofas Turk Otomobil Fabrikasi A/S | 6,639 | 19,941 | ||||||
TVS Motor Co. Ltd. | 3,564 | 25,223 | ||||||
UMW Holdings Bhd. | 20,800 | 27,418 | ||||||
Yadea Group Holdings Ltd.(b) | 40,000 | 13,715 | ||||||
Yulon Motor Co. Ltd. | 97,000 | 61,212 | ||||||
10,529,371 | ||||||||
Banks – 14.5% | ||||||||
Absa Group Ltd. | 70,850 | 811,776 | ||||||
Abu Dhabi Commercial Bank PJSC | 191,513 | 515,130 | ||||||
AFFIN Bank Bhd. | 38,816 | 21,030 | ||||||
Agricultural Bank of China Ltd., Class H | 2,834,000 | 1,307,655 | ||||||
Akbank T.A.S.* | 257,048 | 263,529 | ||||||
Akbank T.A.S., ADR* | 20,016 | 40,132 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 137 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Al Khalij Commercial Bank PQSC | 231,189 | $ | 749,202 | |||||
Alior Bank SA* | 2,987 | 45,764 | ||||||
Alliance Bank Malaysia Bhd. | 28,200 | 27,692 | ||||||
Alpha Bank AE* | 74,447 | 115,304 | ||||||
AMMB Holdings Bhd. | 163,500 | 176,767 | ||||||
AU Small Finance Bank Ltd.(b) | 2,288 | 21,206 | ||||||
Axis Bank Ltd.* | 82,077 | 904,922 | ||||||
Banco Bradesco SA* | 46,992 | 368,770 | ||||||
Banco Bradesco SA (Preference)* | 187,320 | 1,687,175 | ||||||
Banco Davivienda SA (Preference) | 3,395 | 41,971 | ||||||
Banco de Bogota SA | 4,469 | 95,137 | ||||||
Banco de Chile | 1,477,836 | 216,061 | ||||||
Banco de Credito e Inversiones SA | 2,180 | 144,641 | ||||||
Banco del Bajio SA* (a) (b) | 25,800 | 55,281 | ||||||
Banco do Brasil SA* | 119,900 | 1,507,894 | ||||||
Banco do Estado do Rio Grande do Sul SA (Preference), Class B | 21,800 | 134,763 | ||||||
Banco Santander Chile | 2,761,842 | 193,420 | ||||||
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand(a) | 87,200 | 145,953 | ||||||
Bancolombia SA | 27,359 | 333,151 | ||||||
Bancolombia SA (Preference) | 44,908 | 567,665 | ||||||
Bank Al Habib Ltd. | 1,253,500 | 720,962 | ||||||
Bank Alfalah Ltd. | 2,500 | 782 | ||||||
Bank BTPN Tbk. PT* | 97,000 | 25,254 | ||||||
Bank Central Asia Tbk. PT | 512,300 | 1,033,588 | ||||||
Bank Danamon Indonesia Tbk. PT | 150,800 | 93,655 | ||||||
Bank Handlowy w Warszawie SA | 2,012 | 32,692 | ||||||
Bank Mandiri Persero Tbk. PT* | 861,100 | 466,807 | ||||||
Bank Millennium SA* | 25,240 | 63,593 | ||||||
Bank Negara Indonesia Persero Tbk. PT* | 730,300 | 491,992 | ||||||
Bank of Baroda* | 50,031 | 83,908 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Bank of China Ltd., Class H | 7,521,000 | $ | 3,585,355 | |||||
Bank of Chongqing Co. Ltd., Class H | 654,000 | 424,307 | ||||||
Bank of Communications Co. Ltd., Class H | 2,113,000 | 1,780,270 | ||||||
Bank of Gansu Co. Ltd., Class H* (b) | 1,962,000 | 547,681 | ||||||
Bank of India* | 15,737 | 19,967 | ||||||
Bank of Jinzhou Co. Ltd., Class H(b) (c) | 258,000 | 230,199 | ||||||
Bank of Sharjah* (c) | 889,767 | 224,310 | ||||||
Bank of the Philippine Islands | 79,570 | 129,557 | ||||||
Bank of Tianjin Co. Ltd., Class H(b) | 898,000 | 515,079 | ||||||
Bank of Zhengzhou Co. Ltd., Class H(b) | 1,417,000 | 577,969 | ||||||
Bank Pan Indonesia Tbk. PT* | 325,900 | 29,617 | ||||||
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk. PT* | 249,600 | 35,557 | ||||||
Bank Pembangunan Daerah Jawa Timur Tbk. PT* | 10,289,600 | 491,013 | ||||||
Bank Polska Kasa Opieki SA | 7,303 | 216,909 | ||||||
Bank Rakyat Indonesia Persero Tbk. PT* | 2,463,400 | 755,443 | ||||||
Bank Tabungan Negara Persero Tbk. PT* | 501,400 | 89,021 | ||||||
BDO Unibank, Inc. | 78,480 | 201,800 | ||||||
BIMB Holdings Bhd. | 14,780 | 16,587 | ||||||
BNK Financial Group, Inc. | 26,814 | 160,909 | ||||||
BOC Hong Kong Holdings Ltd. | 163,500 | 731,492 | ||||||
Canara Bank* | 11,983 | 44,871 | ||||||
Capitec Bank Holdings Ltd. | 3,379 | 315,053 | ||||||
Chang Hwa Commercial Bank Ltd. | 302,534 | 181,123 | ||||||
China Banking Corp. | 51,084 | 26,026 | ||||||
China CITIC Bank Corp. Ltd., Class H | 1,141,000 | 731,541 | ||||||
China Construction Bank Corp., Class H | 10,682,000 | 9,435,626 | ||||||
China Development Financial Holding Corp. | 1,308,000 | 421,171 | ||||||
China Everbright Bank Co. Ltd., Class H | 327,000 | 161,303 |
See Accompanying Notes to the Financial Statements.
138 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
China Merchants Bank Co. Ltd., Class H | 368,000 | $ | 1,822,316 | |||||
China Minsheng Banking Corp. Ltd., Class H | 654,000 | 490,996 | ||||||
China Zheshang Bank Co. Ltd., Class H | 136,000 | 75,061 | ||||||
Chong Hing Bank Ltd. | 243,000 | 457,789 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H | 3,540,000 | 2,066,587 | ||||||
CIMB Group Holdings Bhd. | 234,449 | 298,838 | ||||||
City Union Bank Ltd. | 9,675 | 28,210 | ||||||
Commercial Bank PQSC (The) | 9,374 | 131,037 | ||||||
Commercial International Bank Egypt SAE | 73,431 | 326,042 | ||||||
Credicorp Ltd. | 3,052 | 723,019 | ||||||
Credit Agricole Egypt SAE | 11,960 | 29,212 | ||||||
Credit Bank of Moscow PJSC* | 948,708 | 87,118 | ||||||
CTBC Financial Holding Co. Ltd. | 1,962,000 | 1,342,879 | ||||||
DCB Bank Ltd. | 1,720 | 5,251 | ||||||
DGB Financial Group, Inc. | 18,094 | 130,421 | ||||||
Doha Bank QPSC | 17,573 | 104,726 | ||||||
Dubai Islamic Bank PJSC | 163,500 | 230,128 | ||||||
E.Sun Financial Holding Co. Ltd. | 496,151 | 407,023 | ||||||
Eurobank Ergasias SA* | 157,723 | 131,686 | ||||||
Far Eastern International Bank | 119,838 | 44,598 | ||||||
Federal Bank Ltd. | 65,664 | 87,563 | ||||||
First Abu Dhabi Bank PJSC | 129,274 | 563,109 | ||||||
First Financial Holding Co. Ltd. | 436,000 | 311,116 | ||||||
Grupo Aval Acciones y Valores SA (Preference) | 449,843 | 173,091 | ||||||
Grupo Elektra SAB de CV(a) | 2,725 | 144,455 | ||||||
Grupo Financiero Banorte SAB de CV, Class O(a) | 133,400 | 840,320 | ||||||
Grupo Financiero Inbursa SAB de CV, Class O | 98,100 | 149,655 | ||||||
Grupo Security SA | 33,325 | 13,463 | ||||||
Habib Bank Ltd. | 67,900 | 61,182 | ||||||
Habib Metropolitan Bank Ltd. | 708,500 | 203,023 | ||||||
Hana Financial Group, Inc. | 29,648 | 933,995 | ||||||
Harbin Bank Co. Ltd., Class H(b) | 4,251,000 | 969,905 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Hong Leong Bank Bhd. | 21,800 | $ | 105,349 | |||||
Hong Leong Financial Group Bhd. | 12,600 | 58,573 | ||||||
Housing & Development Bank | 72,267 | 202,222 | ||||||
Hua Nan Financial Holdings Co. Ltd. | 436,000 | 285,013 | ||||||
Huishang Bank Corp. Ltd., Class H | 1,199,000 | 513,503 | ||||||
ICICI Bank Ltd. | 146,060 | 855,733 | ||||||
IDBI Bank Ltd.* | 20,447 | 11,568 | ||||||
IDFC First Bank Ltd. | 76,061 | 54,623 | ||||||
Indian Bank* | 9,984 | 36,216 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 7,739,000 | 5,810,119 | ||||||
Industrial Bank of Korea | 26,487 | 320,842 | ||||||
ING Bank Slaski SA | 1,853 | 93,422 | ||||||
Intercorp Financial Services, Inc.(b) | 1,040 | 45,864 | ||||||
Itau CorpBanca | 7,481,695 | 66,596 | ||||||
Itau Unibanco Holding SA (Preference) | 228,900 | 1,960,278 | ||||||
Itausa – Investimentos Itau SA | 44,709 | 156,187 | ||||||
Itausa – Investimentos Itau SA (Preference) | 218,000 | 657,261 | ||||||
JB Financial Group Co. Ltd. | 14,892 | 72,538 | ||||||
Jiangxi Bank Co. Ltd., Class H* (b) | 28,500 | 22,886 | ||||||
Karur Vysya Bank Ltd. (The) | 13,613 | 15,149 | ||||||
KB Financial Group, Inc. | 39,348 | 1,556,207 | ||||||
Kiatnakin Bank PCL, NVDR | 43,600 | 90,136 | ||||||
King’s Town Bank Co. Ltd. | 109,000 | 116,580 | ||||||
Komercni banka A/S | 4,033 | 152,616 | ||||||
Kotak Mahindra Bank Ltd. | 38,041 | 758,345 | ||||||
Krung Thai Bank PCL, NVDR | 316,100 | 187,135 | ||||||
LH Financial Group PCL, NVDR | 5,133,900 | 239,609 | ||||||
Malayan Banking Bhd. | 256,200 | 573,189 | ||||||
Masraf Al Rayan QSC | 16,568 | 165,168 | ||||||
mBank SA | 763 | 88,297 | ||||||
MCB Bank Ltd. | 54,500 | 73,272 | ||||||
Mega Financial Holding Co. Ltd. | 493,000 | 473,041 | ||||||
Metropolitan Bank & Trust Co. | 86,114 | 122,695 | ||||||
Moneta Money Bank A/S(b) | 17,472 | 55,886 | ||||||
National Bank of Greece SA* | 58,078 | 127,182 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 139 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
National Bank of Pakistan* | 52,000 | $ | 14,551 | |||||
Nedbank Group Ltd. | 37,932 | 703,963 | ||||||
Oriental Bank of Commerce* | 208,408 | 289,748 | ||||||
OTP Bank Nyrt | 10,137 | 449,019 | ||||||
Philippine National Bank* | 718,590 | 723,933 | ||||||
Piraeus Bank SA* | 453,985 | 918,350 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(a) (b) | 828,000 | 503,424 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA | 39,785 | 407,817 | ||||||
Public Bank Bhd. | 119,900 | 652,497 | ||||||
Punjab National Bank* | 25,105 | 30,644 | ||||||
Qatar International Islamic Bank QSC | 2,042 | 38,751 | ||||||
Qatar Islamic Bank SAQ | 5,450 | 249,506 | ||||||
Qatar National Bank QPSC | 20,710 | 1,114,714 | ||||||
RBL Bank Ltd.(b) | 3,686 | 35,976 | ||||||
Regional SAB de CV | 9,900 | 53,765 | ||||||
RHB Bank Bhd. | 109,000 | 157,127 | ||||||
Rizal Commercial Banking Corp.* | 43,139 | 21,523 | ||||||
Santander Bank Polska SA | 1,417 | 146,879 | ||||||
Sberbank of Russia PJSC | 1,069,181 | 3,728,040 | ||||||
Sberbank of Russia PJSC (Preference) | 96,901 | 297,692 | ||||||
Security Bank Corp. | 13,750 | 47,493 | ||||||
Shengjing Bank Co. Ltd., Class H(b) | 708,500 | 411,803 | ||||||
Shinhan Financial Group Co. Ltd. | 46,979 | 1,773,551 | ||||||
Siam Commercial Bank PCL (The), NVDR | 152,600 | 626,174 | ||||||
SinoPac Financial Holdings Co. Ltd. | 436,000 | 167,904 | ||||||
Sociedad Matriz del Banco de Chile SA, Class B | 182,030 | 88,918 | ||||||
Standard Bank Group Ltd.(a) | 127,857 | 1,774,770 | ||||||
State Bank of India* | 81,641 | 363,814 | ||||||
Syndicate Bank* | 573,776 | 310,177 | ||||||
Taichung Commercial Bank Co. Ltd. | 229,977 | 89,309 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Taishin Financial Holding Co. Ltd. | 981,000 | $ | 444,452 | |||||
Taiwan Business Bank | 180,440 | 74,451 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 436,000 | 289,246 | ||||||
Thanachart Capital PCL, NVDR | 65,400 | 108,573 | ||||||
Tisco Financial Group PCL, NVDR | 20,800 | 54,565 | ||||||
TMB Bank PCL, NVDR | 1,199,000 | 75,865 | ||||||
Turkiye Garanti Bankasi A/S* | 207,100 | 283,442 | ||||||
Turkiye Halk Bankasi A/S | 62,292 | 61,045 | ||||||
Turkiye Is Bankasi A/S, Class C* | 139,847 | 125,568 | ||||||
Turkiye Vakiflar Bankasi TAO, Class D | 106,464 | 72,052 | ||||||
Union Bank of India* | 325,474 | 390,735 | ||||||
Union Bank of Taiwan | 214,296 | 75,937 | ||||||
Union Bank of the Philippines | 16,100 | 18,830 | ||||||
Union National Bank PJSC | 109,872 | 174,986 | ||||||
United Bank Ltd. | 54,500 | 57,053 | ||||||
VTB Bank PJSC | 478,658,251 | 263,131 | ||||||
Woori Financial Group, Inc. | 49,869 | 591,265 | ||||||
Yapi ve Kredi Bankasi A/S* | 194,562 | 67,467 | ||||||
Yes Bank Ltd. | 169,059 | 408,345 | ||||||
84,920,934 | ||||||||
Beverages – 0.6% | ||||||||
Ambev SA | 207,100 | 968,316 | ||||||
Anadolu Efes Biracilik ve Malt Sanayii A/S | 10,922 | 36,263 | ||||||
Arca Continental SAB de CV | 13,700 | 77,499 | ||||||
Becle SAB de CV | 34,400 | 53,871 | ||||||
Carabao Group PCL, NVDR | 13,100 | 23,902 | ||||||
Carlsberg Brewery Malaysia Bhd. | 5,100 | 31,159 | ||||||
China Resources Beer Holdings Co. Ltd. | 69,107 | 315,788 | ||||||
Cia Cervecerias Unidas SA | 8,175 | 112,580 | ||||||
Coca-Cola Embonor SA (Preference), Class B | 4,368 | 10,238 | ||||||
Coca-Cola Femsa SAB de CV | 27,000 | 171,641 | ||||||
Coca-Cola Icecek A/S | 360 | 1,909 |
See Accompanying Notes to the Financial Statements.
140 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Beverages – (continued) | ||||||||
Embotelladora Andina SA (Preference), Class B | 9,513 | $ | 33,843 | |||||
Emperador, Inc.* | 145,600 | 20,759 | ||||||
Fomento Economico Mexicano SAB de CV(a) | 87,200 | 847,710 | ||||||
Fraser & Neave Holdings Bhd. | 3,700 | 31,232 | ||||||
Heineken Malaysia Bhd. | 7,700 | 45,628 | ||||||
Hey Song Corp. | 2,000 | 2,055 | ||||||
Hite Jinro Co. Ltd. | 1,790 | 31,106 | ||||||
Lotte Chilsung Beverage Co. Ltd.(c) | 15 | 22,228 | ||||||
Muhak Co. Ltd. | 761 | 8,860 | ||||||
Osotspa PCL, NVDR | 22,400 | 21,576 | ||||||
Tibet Water Resources Ltd.* | 52,000 | 15,178 | ||||||
Tsingtao Brewery Co. Ltd., Class H | 18,000 | 114,717 | ||||||
United Breweries Ltd. | 4,200 | 85,683 | ||||||
United Spirits Ltd.* | 15,260 | 123,105 | ||||||
Varun Beverages Ltd. | 774 | 9,745 | ||||||
Vina Concha y Toro SA | 19,880 | 41,709 | ||||||
3,258,300 | ||||||||
Biotechnology – 0.4% | ||||||||
3SBio, Inc.(b) | 33,480 | 61,878 | ||||||
Alteogen, Inc.* | 574 | 21,670 | ||||||
Amicogen, Inc.* | 514 | 14,036 | ||||||
Anterogen Co. Ltd.* | 328 | 18,841 | ||||||
BeiGene Ltd.* | 24,000 | 231,269 | ||||||
Biocon Ltd. | 4,765 | 40,660 | ||||||
Celltrion, Inc.* | 4,770 | 865,753 | ||||||
China Biologic Products Holdings, Inc.* (a) | 1,456 | 145,979 | ||||||
CrystalGenomics, Inc.* | 2,433 | 35,407 | ||||||
Genexine Co. Ltd.* | 650 | 41,621 | ||||||
Green Cross Cell Corp. | 258 | 10,370 | ||||||
Green Cross Corp. | 300 | 36,982 | ||||||
Green Cross Holdings Corp. | 1,787 | 37,250 | ||||||
Helixmith Co. Ltd.* | 709 | 157,987 | ||||||
Hugel, Inc.* | 104 | 36,894 | ||||||
iNtRON Biotechnology, Inc.* | 920 | 15,200 | ||||||
Medy-Tox, Inc. | 223 | 106,732 | ||||||
OBI Pharma, Inc.* | 9,000 | 45,290 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
PharmaEngine, Inc. | 4,172 | $ | 14,379 | |||||
PharmaEssentia Corp.* | 9,000 | 41,649 | ||||||
Pharmicell Co. Ltd.* | 3,360 | 32,503 | ||||||
Seegene, Inc.* | 999 | 20,097 | ||||||
SillaJen, Inc.* | 2,834 | 158,664 | ||||||
STCUBE* | 750 | 13,932 | ||||||
TaiMed Biologics, Inc.* | 8,000 | 40,646 | ||||||
Tanvex BioPharma, Inc.* | 9,000 | 20,562 | ||||||
2,266,251 | ||||||||
Building Products – 0.2% | ||||||||
Astral Poly Technik Ltd. | 1,823 | 32,305 | ||||||
China Lesso Group Holdings Ltd. | 97,000 | 68,620 | ||||||
Elementia SAB de CV* (b) | 10,400 | 5,680 | ||||||
IS Dongseo Co. Ltd. | 1,106 | 34,416 | ||||||
Kajaria Ceramics Ltd. | 2,608 | 22,312 | ||||||
KCC Corp. | 327 | 99,375 | ||||||
Kyung Dong Navien Co. Ltd. | 208 | 9,224 | ||||||
LG Hausys Ltd. | 8,175 | 425,493 | ||||||
National Central Cooling Co. PJSC | 13,871 | 6,042 | ||||||
Taiwan Glass Industry Corp. | 56,000 | 22,381 | ||||||
Trakya Cam Sanayii A/S | 542,275 | 287,966 | ||||||
1,013,814 | ||||||||
Capital Markets – 2.1% | ||||||||
B3 SA – Brasil Bolsa Balcao* | 98,100 | 855,516 | ||||||
Banco BTG Pactual SA* | 5,200 | 54,471 | ||||||
Bolsa Mexicana de Valores SAB de CV(a) | 24,100 | 49,523 | ||||||
Brait SE* | 9,064 | 14,542 | ||||||
Bursa Malaysia Bhd. | 17,700 | 28,897 | ||||||
Capital Securities Corp. | 209,680 | 63,106 | ||||||
China Bills Finance Corp. | 71,000 | 33,890 | ||||||
China Cinda Asset Management Co. Ltd., Class H | 872,000 | 232,299 | ||||||
China Ding Yi Feng Holdings Ltd.* (a) (c) | 40,000 | 117,776 | ||||||
China Everbright Ltd. | 72,000 | 131,053 | ||||||
China Galaxy Securities Co. Ltd., Class H | 381,500 | 249,458 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 141 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
China Huarong Asset Management Co. Ltd., Class H* (b) | 872,000 | $ | 186,729 | |||||
China International Capital Corp. Ltd., Class H(a) (b) | 43,600 | 93,587 | ||||||
China Merchants Securities Co. Ltd., Class H(b) | 1,177,200 | 1,608,533 | ||||||
CITIC Securities Co. Ltd., Class H(a) | 218,000 | 471,267 | ||||||
Coronation Fund Managers Ltd.(a) | 7,009 | 24,997 | ||||||
CSC Financial Co. Ltd., Class H(b) | 1,144,500 | 975,948 | ||||||
Daishin Securities Co. Ltd. | 4,440 | 48,461 | ||||||
Daishin Securities Co. Ltd. (Preference) | 1,603 | 12,625 | ||||||
Daou Technology, Inc. | 2,355 | 44,655 | ||||||
Dubai Financial Market PJSC* | 67,052 | 14,074 | ||||||
Edelweiss Financial Services Ltd. | 22,568 | 48,265 | ||||||
Egypt Kuwait Holding Co. SAE | 36,677 | 53,438 | ||||||
Egyptian Financial Group-Hermes Holding Co.* | 741,636 | 685,582 | ||||||
Everbright Securities Co. Ltd., Class H(b) | 392,400 | 376,125 | ||||||
GF Securities Co. Ltd., Class H | 130,800 | 176,725 | ||||||
Guotai Junan International Holdings Ltd.(a) | 4,469,000 | 900,020 | ||||||
Guotai Junan Securities Co. Ltd., Class H(b) | 19,600 | 41,871 | ||||||
Haitong Securities Co. Ltd., Class H | 305,200 | 392,908 | ||||||
Hanwha Investment & Securities Co. Ltd.* | 177,670 | 358,945 | ||||||
HDFC Asset Management Co. Ltd.(b) | 862 | 21,007 | ||||||
Huatai Securities Co. Ltd., Class H(b) | 65,400 | 123,041 | ||||||
IIFL Holdings Ltd. | 3,988 | 24,761 | ||||||
Indiabulls Ventures Ltd. | 9,273 | 39,570 | ||||||
Investec Ltd. | 13,843 | 88,207 | ||||||
Jih Sun Financial Holdings Co. Ltd. | 96,907 | 30,796 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
JM Financial Ltd. | 11,544 | $ | 14,689 | |||||
JSE Ltd. | 4,205 | 40,679 | ||||||
KIWOOM Securities Co. Ltd. | 448 | 31,525 | ||||||
Korea Investment Holdings Co. Ltd. | 4,033 | 236,149 | ||||||
Kresna Graha Investama Tbk. PT* | 187,300 | 7,623 | ||||||
Macquarie Korea Infrastructure Fund | 16,350 | 157,461 | ||||||
Meritz Securities Co. Ltd. | 32,046 | 138,812 | ||||||
Mirae Asset Daewoo Co. Ltd. | 36,842 | 246,002 | ||||||
Moscow ExchangeMICEX-RTS PJSC | 79,243 | 111,727 | ||||||
NH Investment & Securities Co. Ltd. | 7,957 | 93,660 | ||||||
NH Investment & Securities Co. Ltd. (Preference) | 1,352 | 10,416 | ||||||
Norte Grande SA | 1,317 | 7 | ||||||
Orient Securities Co. Ltd., Class H(b) | 19,600 | 14,165 | ||||||
Pioneers Holding for Financial Investments SAE* | 613,125 | 263,430 | ||||||
Pool Advista Indonesia Tbk. PT* | 39,300 | 5,957 | ||||||
President Securities Corp. | 1,308,000 | 569,321 | ||||||
PSG Konsult Ltd. | 3,256 | 2,407 | ||||||
Reinet Investments SCA | 11,554 | 194,205 | ||||||
Samsung Securities Co. Ltd. | 6,104 | 186,284 | ||||||
Shinyoung Securities Co. Ltd.* | 6,104 | 307,251 | ||||||
Sociedad de Inversiones Oro Blanco SA | 43,485,877 | 236,726 | ||||||
Warsaw Stock Exchange | 1,040 | 11,302 | ||||||
Waterland Financial Holdings Co. Ltd. | 150,929 | 50,796 | ||||||
Yuanta Financial Holding Co. Ltd. | 1,199,000 | 694,544 | ||||||
Yuanta Securities Korea Co. Ltd.* | 7,207 | 20,483 | ||||||
Zeder Investments Ltd. | 19,109 | 5,745 | ||||||
12,324,034 | ||||||||
Chemicals – 3.4% | ||||||||
Acron PJSC | 605 | 42,159 | ||||||
AECI Ltd. | 154,998 | 1,036,077 |
See Accompanying Notes to the Financial Statements.
142 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
AK Holdings, Inc. | 7,412 | $ | 327,406 | |||||
Akzo Nobel India Ltd. | 832 | 20,558 | ||||||
Alpek SAB de CV(a) | 14,100 | 17,285 | ||||||
Asian Paints Ltd. | 13,080 | 275,154 | ||||||
Barito Pacific Tbk. PT | 719,400 | 203,451 | ||||||
BASF India Ltd. | 836 | 16,389 | ||||||
Batu Kawan Bhd. | 24,200 | 98,334 | ||||||
Berger Paints India Ltd. | 10,816 | 49,599 | ||||||
Braskem SA (Preference), Class A | 10,900 | 131,839 | ||||||
Castrol India Ltd. | 9,090 | 19,943 | ||||||
Chambal Fertilizers and Chemicals Ltd. | 5,408 | 12,067 | ||||||
China General Plastics Corp. | 470,550 | 345,668 | ||||||
China Lumena New Materials Corp.* ‡ (c) | 888,000 | — | ||||||
ChinaMan-Made Fiber Corp. | 68,000 | 21,390 | ||||||
China Petrochemical Development Corp.* | 222,700 | 83,960 | ||||||
China Steel Chemical Corp. | 8,000 | 34,821 | ||||||
Ciech SA | 36,188 | 452,338 | ||||||
Coremax Corp. | 4,228 | 11,794 | ||||||
Coromandel International Ltd. | 1,898 | 11,853 | ||||||
D&L Industries, Inc. | 110,800 | 23,218 | ||||||
DCM Shriram Ltd. | 868 | 5,428 | ||||||
Dongjin Semichem Co. Ltd. | 48,832 | 470,282 | ||||||
Dongyue Group Ltd. | 1,635,000 | 1,189,978 | ||||||
Eastern Polymer Group PCL, NVDR | 52,200 | 10,628 | ||||||
Ecopro Co. Ltd.* | 624 | 14,503 | ||||||
Engro Corp. Ltd. | 32,700 | 73,500 | ||||||
Engro Fertilizers Ltd. | 69,500 | 34,150 | ||||||
Eternal Materials Co. Ltd. | 46,010 | 38,043 | ||||||
Everlight Chemical Industrial Corp. | 54,000 | 29,184 | ||||||
Fauji Fertilizer Co. Ltd. | 61,000 | 44,859 | ||||||
Finolex Industries Ltd. | 145 | 967 | ||||||
Foosung Co. Ltd.* | 1,768 | 12,138 | ||||||
Formosa Chemicals & Fibre Corp. | 190,000 | 682,502 | ||||||
Formosa Plastics Corp. | 207,000 | 750,267 | ||||||
Fufeng Group Ltd.* (a) | 1,688,000 | 892,905 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Grand Pacific Petrochemical | 1,130,000 | $ | 777,078 | |||||
Grupa Azoty SA | 66,926 | 723,789 | ||||||
Gujarat Fluorochemicals Ltd. | 1,704 | 25,502 | ||||||
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. | 51,775 | 233,329 | ||||||
Hansol Chemical Co. Ltd. | 528 | 38,646 | ||||||
Hanwha Chemical Corp. | 10,573 | 186,452 | ||||||
Himadri Speciality Chemical Ltd. | 7,638 | 12,140 | ||||||
Huabao International Holdings Ltd. | 1,150,000 | 539,424 | ||||||
Huchems Fine Chemical Corp. | 2,040 | 38,245 | ||||||
Indorama Ventures PCL, NVDR | 104,000 | 149,037 | ||||||
International CSRC Investment Holdings Co. | 83,031 | 112,854 | ||||||
Kansai Nerolac Paints Ltd. | 7,592 | 48,142 | ||||||
Kolon Industries, Inc. | 1,962 | 77,597 | ||||||
Korea Petrochemical Ind Co. Ltd. | 420 | 53,931 | ||||||
Kumho Petrochemical Co. Ltd. | 1,744 | 137,054 | ||||||
LG Chem Ltd. | 2,180 | 673,698 | ||||||
LG Chem Ltd. (Preference) | 436 | 74,835 | ||||||
Lotte Chemical Corp. | 1,635 | 375,806 | ||||||
Lotte Chemical Titan Holding Bhd.(b) | 17,500 | 14,941 | ||||||
LOTTE Fine Chemical Co. Ltd. | 1,649 | 67,900 | ||||||
Mexichem SAB de CV(a) | 54,500 | 126,087 | ||||||
Misr Fertilizers Production Co. SAE* | 1,204 | 5,087 | ||||||
Namhae Chemical Corp. | 1,040 | 9,571 | ||||||
Nan Ya Plastics Corp. | 256,000 | 647,021 | ||||||
OCI Co. Ltd. | 1,962 | 156,369 | ||||||
Omnia Holdings Ltd. | 2,184 | 8,866 | ||||||
Oriental Union Chemical Corp. | 34,000 | 28,607 | ||||||
Petkim Petrokimya Holding A/S | 70,602 | 52,867 | ||||||
Petronas Chemicals Group Bhd. | 109,000 | 237,272 | ||||||
PhosAgro PJSC | 1,080 | 39,519 | ||||||
PI Industries Ltd. | 1,268 | 19,035 | ||||||
Pidilite Industries Ltd. | 5,450 | 96,735 | ||||||
PTT Global Chemical PCL, NVDR | 163,500 | 352,095 | ||||||
Rain Industries Ltd. | 112,270 | 185,466 | ||||||
Sasol Ltd. | 26,487 | 876,646 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 143 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Scientex Bhd. | 8,700 | $ | 17,991 | |||||
Shinkong Synthetic Fibers Corp. | 2,017,000 | 887,712 | ||||||
Sidi Kerir Petrochemicals Co. | 3,797 | 3,859 | ||||||
Sinofert Holdings Ltd.* (a) | 172,000 | 21,266 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H | 286,000 | 129,413 | ||||||
SK Chemicals Co. Ltd. | 213 | 12,344 | ||||||
SK Discovery Co. Ltd. | 15,914 | 414,147 | ||||||
SK Materials Co. Ltd. | 312 | 45,966 | ||||||
SKC Co. Ltd. | 1,946 | 59,555 | ||||||
SKCKOLONPI, Inc. | 520 | 13,488 | ||||||
Sociedad Quimica y Minera de Chile SA (Preference), Class B | 9,047 | 321,439 | ||||||
Soda Sanayii A/S | 30,857 | 40,112 | ||||||
Solar Industries India Ltd. | 1,040 | 16,078 | ||||||
Songwon Industrial Co. Ltd. | 22,563 | 386,303 | ||||||
Soulbrain Co. Ltd. | 416 | 17,913 | ||||||
SRF Ltd. | 774 | 28,573 | ||||||
Supreme Industries Ltd. | 1,204 | 19,785 | ||||||
Taekwang Industrial Co. Ltd. | 52 | 66,728 | ||||||
Taiwan Fertilizer Co. Ltd. | 37,000 | 53,822 | ||||||
Taiwan Styrene Monomer | 654,000 | 529,109 | ||||||
Tata Chemicals Ltd. | 1,541 | 12,787 | ||||||
TOA Paint Thailand PCL, NVDR | 12,000 | 11,840 | ||||||
TSRC Corp. | 34,000 | 31,303 | ||||||
Unid Co. Ltd. | 8,284 | 355,996 | ||||||
Unipar Carbocloro SA (Preference) | 60,100 | 590,152 | ||||||
UPC Technology Corp. | 1,147,000 | 467,694 | ||||||
UPL Ltd. | 16,677 | 232,374 | ||||||
USI Corp. | 1,090,000 | 417,996 | ||||||
19,892,025 | ||||||||
Commercial Services & Supplies – 0.2% | ||||||||
China Everbright International Ltd. | 351,444 | 344,035 | ||||||
Cleanaway Co. Ltd. | 3,000 | 16,553 | ||||||
Country Garden Services Holdings Co. Ltd.* | 45,887 | 84,809 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – (continued) | ||||||||
Eastern Media International Corp. | 436,000 | $ | 175,664 | |||||
ECOVE Environment Corp. | 1,000 | 6,052 | ||||||
Greentown Service Group Co. Ltd.(b) | 68,000 | 58,679 | ||||||
KEPCO Plant Service & Engineering Co. Ltd. | 1,144 | 35,892 | ||||||
S-1 Corp. | 981 | 82,299 | ||||||
Sunny Friend Environmental Technology Co. Ltd. | 3,000 | 25,533 | ||||||
Taiwan Secom Co. Ltd. | 11,165 | 31,218 | ||||||
Taiwan Shin Kong Security Co. Ltd. | 8,240 | 10,200 | ||||||
870,934 | ||||||||
Communications Equipment – 0.3% | ||||||||
Accton Technology Corp. | 21,000 | 89,026 | ||||||
Advanced Ceramic X Corp. | 1,000 | 10,032 | ||||||
Arcadyan Technology Corp. | 218,000 | 603,890 | ||||||
BYD Electronic International Co. Ltd.(a) | 70,500 | 125,986 | ||||||
Sercomm Corp. | 302,000 | 664,574 | ||||||
Sterlite Technologies Ltd. | 5,616 | 15,414 | ||||||
Wistron NeWeb Corp. | 10,093 | 26,130 | ||||||
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., Class H(a) (b) | 6,000 | 14,775 | ||||||
ZTE Corp., Class H | 23,400 | 74,268 | ||||||
1,624,095 | ||||||||
Construction & Engineering – 1.8% | ||||||||
Acter Co. Ltd. | 72,000 | 420,569 | ||||||
Arabtec Holding PJSC* | 57,790 | 32,567 | ||||||
BES Engineering Corp. | 55,000 | 13,883 | ||||||
Budimex SA | 460 | 17,712 | ||||||
CH Karnchang PCL, NVDR | 737 | 618 | ||||||
China Communications Construction Co. Ltd., Class H | 436,000 | 419,583 | ||||||
China Energy Engineering Corp. Ltd., Class H | 8,720,000 | 1,044,791 | ||||||
China Railway Construction Corp. Ltd., Class H | 184,500 | 217,767 |
See Accompanying Notes to the Financial Statements.
144 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares�� Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
China Railway Group Ltd., Class H | 376,000 | $ | 296,184 | |||||
China State Construction International Holdings Ltd.(a) | 185,750 | 192,488 | ||||||
Continental Holdings Corp. | 616,000 | 306,993 | ||||||
CTCI Corp. | 23,000 | 35,653 | ||||||
Daelim Industrial Co. Ltd. | 2,725 | 225,810 | ||||||
Daewoo Engineering & Construction Co. Ltd.* | 23,326 | 100,640 | ||||||
Dilip Buildcon Ltd.(b) | 1,768 | 13,697 | ||||||
Engineers India Ltd. | 7,880 | 12,638 | ||||||
Gamuda Bhd. | 83,200 | 70,432 | ||||||
GEK Terna Holding Real Estate Construction SA* | 2,367 | 13,635 | ||||||
GMR Infrastructure Ltd.* | 102,144 | 24,452 | ||||||
GS Engineering & Construction Corp. | 6,867 | 238,668 | ||||||
HDC Holdings Co. Ltd. | 5,090 | 74,946 | ||||||
Hyundai Engineering & Construction Co. Ltd. | 7,194 | 323,319 | ||||||
IJM Corp. Bhd. | 147,900 | 83,707 | ||||||
IRB Infrastructure Developers Ltd. | 211,133 | 370,336 | ||||||
Kalpataru Power Transmission Ltd. | 542 | 3,631 | ||||||
KEC International Ltd. | 516 | 2,121 | ||||||
KEPCO Engineering & Construction Co., Inc. | 602 | 11,750 | ||||||
Kumho Industrial Co. Ltd. | 27,468 | 337,427 | ||||||
Larsen & Toubro Ltd. | 15,073 | 292,235 | ||||||
Larsen & Toubro Ltd., GDR(b) | 296 | 5,695 | ||||||
Malaysian Resources Corp. Bhd. | 83,200 | 20,727 | ||||||
Metallurgical Corp. of China Ltd., Class H | 4,033,000 | 1,115,508 | ||||||
NCC Ltd. | 15,600 | 22,249 | ||||||
PP Persero Tbk. PT | 3,749,600 | 631,512 | ||||||
Salfacorp SA* | 10,456 | 13,604 | ||||||
Samsung Engineering Co. Ltd.* | 7,893 | 115,204 | ||||||
Sinopec Engineering Group Co. Ltd., Class H | 38,000 | 36,714 | ||||||
Sino-Thai Engineering & Construction PCL, NVDR | 41,571 | 32,879 |
Investments | Shares | Value | ||||||
Construction & Engineering – (continued) | ||||||||
Taeyoung Engineering & Construction Co. Ltd. | 59,296 | $ | 649,736 | |||||
Tekfen Holding A/S | 18,899 | 84,277 | ||||||
Totalindo Eka Persada Tbk. PT* | 262,900 | 12,730 | ||||||
United Integrated Services Co. Ltd. | 218,000 | 970,033 | ||||||
Voltas Ltd. | 5,928 | 51,368 | ||||||
Waskita Karya Persero Tbk. PT* | 385,600 | 57,366 | ||||||
Wijaya Karya Persero Tbk. PT | 4,414,500 | 749,690 | ||||||
Wilson Bayly Holmes-Ovcon Ltd. | 74,338 | 585,889 | ||||||
10,353,433 | ||||||||
Construction Materials – 1.7% | ||||||||
ACC Ltd. | 1,926 | 45,193 | ||||||
Ambuja Cements Ltd. | 28,776 | 91,226 | ||||||
Anhui Conch Cement Co. Ltd., Class H | 54,500 | 332,402 | ||||||
Asia Cement China Holdings Corp.(a) | 599,500 | 710,652 | ||||||
Asia Cement Co. Ltd. | 2,507 | 217,832 | ||||||
Asia Cement Corp. | 114,020 | 154,051 | ||||||
BBMG Corp., Class H(a) | 3,270,000 | 1,150,381 | ||||||
Cahya Mata Sarawak Bhd. | 32,900 | 26,578 | ||||||
Cementos Argos SA | 26,160 | 65,246 | ||||||
Cementos Argos SA (Preference) | 10,296 | 21,002 | ||||||
Cementos Pacasmayo SAA | 4,992 | 9,651 | ||||||
CEMEX Latam Holdings SA* | 7,998 | 12,038 | ||||||
Cemex SAB de CV* (a) | 730,300 | 336,685 | ||||||
Century Textiles & Industries Ltd. | 1,872 | 24,686 | ||||||
Chia Hsin Cement Corp. | 763,000 | 370,376 | ||||||
China National Building Material Co. Ltd., Class H | 362,050 | 336,419 | ||||||
China Resources Cement Holdings Ltd. | 218,000 | 218,128 | ||||||
Corp. Moctezuma SAB de CV | 6,900 | 21,890 | ||||||
DG Khan Cement Co. Ltd. | 327,000 | 169,563 | ||||||
Eagle Cement Corp. | 62,400 | 18,991 | ||||||
Eugene Corp. | 82,513 | 435,822 | ||||||
Goldsun Building Materials Co. Ltd. | 1,729,000 | 464,969 | ||||||
Grasim Industries Ltd. | 16,535 | 214,242 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 145 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction Materials – (continued) | ||||||||
Grupo Argos SA | 31,610 | $ | 179,758 | |||||
Grupo Argos SA (Preference) | 18,327 | 87,228 | ||||||
Grupo Cementos de Chihuahua SAB de CV(a) | 20,900 | 119,349 | ||||||
Huaxin Cement Co. Ltd., Class B | 316,100 | 929,650 | ||||||
Indocement Tunggal Prakarsa Tbk. PT | 76,300 | 117,797 | ||||||
Lucky Cement Ltd. | 10,400 | 28,587 | ||||||
POSCO Chemical Co. Ltd. | 1,144 | 56,115 | ||||||
PPC Ltd.* | 54,720 | 19,046 | ||||||
Prism Johnson Ltd. | 10,157 | 13,742 | ||||||
Qatar National Cement Co. QSC | 360 | 6,702 | ||||||
Qatari Investors Group QSC | 1,720 | 11,195 | ||||||
Ramco Cements Ltd. (The) | 3,536 | 39,369 | ||||||
Semen Baturaja Persero Tbk. PT* | 86,000 | 5,914 | ||||||
Semen Indonesia Persero Tbk. PT | 130,800 | 123,916 | ||||||
Shree Cement Ltd. | 436 | 124,051 | ||||||
Siam Cement PCL (The), NVDR | 31,500 | 455,850 | ||||||
Siam City Cement PCL, NVDR | 4,700 | 31,947 | ||||||
Ssangyong Cement Industrial Co. Ltd. | 6,660 | 32,897 | ||||||
Taiwan Cement Corp. | 436,000 | 592,602 | ||||||
Titan Cement Co. SA | 1,371 | 29,746 | ||||||
TPI Polene PCL, NVDR | 377,200 | 23,394 | ||||||
UltraTech Cement Ltd. | 5,123 | 340,052 | ||||||
Union Andina de Cementos SAA | 32,705 | 24,698 | ||||||
Waskita Beton Precast Tbk. PT* | 11,979,100 | 369,881 | ||||||
West China Cement Ltd. | 3,270,000 | 458,485 | ||||||
9,669,994 | ||||||||
Consumer Finance – 0.9% | ||||||||
51 Credit Card, Inc.* | 926,500 | 635,349 | ||||||
AEON Credit Service M Bhd. | 4,400 | 17,347 | ||||||
AEON Thana Sinsap Thailand PCL, NVDR | 3,500 | 20,227 | ||||||
Bajaj Finance Ltd. | 7,957 | 354,179 | ||||||
Bharat Financial Inclusion Ltd.* | 3,621 | 52,469 |
Investments | Shares | Value | ||||||
Consumer Finance – (continued) | ||||||||
Cholamandalam Investment and Finance Co. Ltd. | 1,997 | $ | 39,875 | |||||
Chong Sing Holdings FinTech Gr* (a) | 19,620,000 | 142,547 | ||||||
Gentera SAB de CV(a) | 1,406,100 | 1,278,750 | ||||||
KRUK SA* | 858 | 38,887 | ||||||
Krungthai Card PCL, NVDR | 36,800 | 46,685 | ||||||
LexinFintech Holdings Ltd., ADR* | 68,424 | 882,670 | ||||||
Mahindra & Mahindra Financial Services Ltd. | 14,104 | 81,243 | ||||||
Manappuram Finance Ltd. | 18,492 | 31,359 | ||||||
Muangthai Capital PCL, NVDR | 39,400 | 63,558 | ||||||
Muthoot Finance Ltd. | 3,784 | 32,479 | ||||||
PPDAI Group, Inc., ADR | 87,200 | 455,184 | ||||||
Safmar Financial Investment | 73,902 | 549,537 | ||||||
Samsung Card Co. Ltd. | 3,052 | 96,930 | ||||||
Shriram City Union Finance Ltd. | 1,537 | 36,509 | ||||||
Shriram Transport Finance Co. Ltd. | 6,540 | 104,460 | ||||||
Srisawad Corp. PCL, NVDR | 24,821 | 42,567 | ||||||
Sundaram Finance Ltd. | 1,310 | 27,197 | ||||||
Transaction Capital Ltd. | 17,028 | 22,698 | ||||||
Unifin Financiera SAB de CV SOFOM ENR(a) | 141,700 | 316,803 | ||||||
Yixin Group Ltd.* (b) | 122,000 | 29,857 | ||||||
Yulon Finance Corp. | 11,000 | 41,115 | ||||||
5,440,481 | ||||||||
Containers & Packaging – 0.4% | ||||||||
Cheng Loong Corp. | 42,000 | 26,844 | ||||||
Dongwon Systems Corp. | 7,085 | 215,919 | ||||||
Greatview Aseptic Packaging Co. Ltd. | 12,000 | 7,296 | ||||||
Klabin SA | 32,700 | 137,412 | ||||||
Lock&Lock Co. Ltd. | 728 | 10,657 | ||||||
Nampak Ltd.* | 902,193 | 660,774 | ||||||
Taiwan Hon Chuan Enterprise Co. Ltd. | 392,000 | 629,210 | ||||||
Ton Yi Industrial Corp. | 38,000 | 15,433 | ||||||
Vitro SAB de CV, Series A | 163,500 | 459,913 | ||||||
2,163,458 |
See Accompanying Notes to the Financial Statements.
146 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Distributors – 0.1% | ||||||||
Dah Chong Hong Holdings Ltd. | 1,199,000 | $ | 438,617 | |||||
Inter Cars SA | 402 | 22,893 | ||||||
461,510 | ||||||||
Diversified Consumer Services – 0.4% | ||||||||
China Education Group Holdings Ltd.(b) | 31,000 | 47,969 | ||||||
China Maple Leaf Educational Systems Ltd. | 56,000 | 26,125 | ||||||
China Yuhua Education Corp. Ltd.(b) | 66,000 | 29,444 | ||||||
Curro Holdings Ltd. | 7,904 | 14,743 | ||||||
Daekyo Co. Ltd. | 1,248 | 6,592 | ||||||
Estacio Participacoes SA | 13,500 | 92,887 | ||||||
Fu Shou Yuan International Group Ltd. | 42,000 | 35,975 | ||||||
Kroton Educacional SA | 76,300 | 188,321 | ||||||
Lung Yen Life Service Corp. | 14,000 | 27,773 | ||||||
New Oriental Education & Technology Group, Inc., ADR* | 5,341 | 509,852 | ||||||
Ser Educacional SA(b) | 87,200 | 509,253 | ||||||
TAL Education Group, ADR* | 16,677 | 641,564 | ||||||
Virscend Education Co. Ltd.(b) | 67,000 | 29,719 | ||||||
Wisdom Education International Holdings Co. Ltd.(b) | 40,000 | 23,453 | ||||||
2,183,670 | ||||||||
Diversified Financial Services – 0.9% | ||||||||
Aditya Birla Capital Ltd.* | 14,160 | 19,900 | ||||||
Al Waha Capital PJSC | 1,345,387 | 399,241 | ||||||
Amanat Holdings PJSC | 49,192 | 13,928 | ||||||
Ayala Corp. | 10,900 | 189,083 | ||||||
Bajaj Holdings & Investment Ltd. | 1,005 | 44,590 | ||||||
Chailease Holding Co. Ltd. | 62,260 | 264,949 | ||||||
China ShandongHi-Speed Financial Group Ltd.* | 12,426,000 | 570,189 | ||||||
Corp. Financiera Colombiana SA* | 4,814 | 37,434 | ||||||
Far East Horizon Ltd. | 109,000 | 121,012 | ||||||
FirstRand Ltd. | 160,230 | 759,000 |
Investments | Shares | Value | ||||||
Diversified Financial Services – (continued) | ||||||||
Grupo de Inversiones Suramericana SA | 27,488 | $ | 305,838 | |||||
Grupo de Inversiones Suramericana SA (Preference) | 10,464 | 112,738 | ||||||
GT Capital Holdings, Inc. | 7,630 | 126,648 | ||||||
Haci Omer Sabanci Holding A/S | 135,596 | 174,904 | ||||||
Hankook Tire Worldwide Co. Ltd. | 2,460 | 35,905 | ||||||
IDFC Ltd. | 1,064,058 | 614,229 | ||||||
Inversiones La Construccion SA | 3,744 | 65,215 | ||||||
L&T Finance Holdings Ltd. | 25,376 | 47,831 | ||||||
Meritz Financial Group, Inc. | 4,139 | 46,770 | ||||||
Metro Pacific Investments Corp. | 804,000 | 70,507 | ||||||
NICE Holdings Co. Ltd. | 728 | 13,929 | ||||||
Power Finance Corp. Ltd.* | 58,248 | 96,810 | ||||||
PSG Group Ltd. | 7,630 | 141,080 | ||||||
REC Ltd. | 60,604 | 128,564 | ||||||
Reliance Capital Ltd. | 166,116 | 317,526 | ||||||
Remgro Ltd. | 24,089 | 326,227 | ||||||
RMB Holdings Ltd. | 34,335 | 199,933 | ||||||
5,243,980 | ||||||||
Diversified Telecommunication Services – 1.2% | ||||||||
Asia Pacific Telecom Co. Ltd.* | 104,000 | 27,194 | ||||||
Bharti Infratel Ltd. | 37,496 | 141,539 | ||||||
China Communications Services Corp. Ltd., Class H | 234,000 | 188,503 | ||||||
China Telecom Corp. Ltd., Class H | 1,368,000 | 707,941 | ||||||
China Tower Corp. Ltd., Class H(b) | 2,056,000 | 555,577 | ||||||
China Unicom Hong Kong Ltd. | 262,000 | 310,911 | ||||||
Chunghwa Telecom Co. Ltd. | 181,000 | 650,173 | ||||||
CITIC Telecom International Holdings Ltd. | 2,071,000 | 857,923 | ||||||
Emirates Telecommunications Group Co. PJSC | 80,333 | 365,234 | ||||||
Hellenic Telecommunications Organization SA | 11,227 | 155,766 | ||||||
Inscobee, Inc.* | 5,160 | 18,663 | ||||||
Jasmine International PCL, NVDR | 76,400 | 13,401 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 147 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
LG Uplus Corp. | 21,146 | $ | 258,860 | |||||
Link Net Tbk. PT* | 31,200 | 9,524 | ||||||
Magyar Telekom Telecommunications plc | 599,936 | 944,630 | ||||||
O2 Czech Republic A/S | 3,092 | 33,575 | ||||||
Oi SA* | 541,700 | 231,748 | ||||||
Oi SA (Preference)* | 10,800 | 4,593 | ||||||
Ooredoo QPSC | 10,355 | 184,847 | ||||||
Orange Polska SA* | 33,592 | 43,314 | ||||||
Rostelecom PJSC | 105,839 | 121,282 | ||||||
Rostelecom PJSC (Preference) | 15,392 | 14,444 | ||||||
Tata Communications Ltd. | 5,003 | 40,364 | ||||||
Telecom Egypt Co. | 37,657 | 30,914 | ||||||
Telefonica Brasil SA (Preference) | 18,000 | 212,202 | ||||||
Telekom Malaysia Bhd. | 60,000 | 42,230 | ||||||
Telekomunikasi Indonesia Persero Tbk. PT | 2,256,300 | 600,097 | ||||||
Telesites SAB de CV* (a) | 60,200 | 40,760 | ||||||
Telkom SA SOC Ltd. | 29,975 | 177,283 | ||||||
TIME dotCom Bhd. | 18,200 | 39,398 | ||||||
Tower Bersama Infrastructure Tbk. PT | 81,300 | 22,536 | ||||||
True Corp. PCL, NVDR | 577,700 | 93,192 | ||||||
Turk Telekomunikasyon A/S* | 55,009 | 39,256 | ||||||
7,177,874 | ||||||||
Electric Utilities – 1.4% | ||||||||
Adani Transmission Ltd.* | 14,456 | 45,527 | ||||||
Alupar Investimento SA | 3,500 | 20,697 | ||||||
Celsia SA ESP | 11,648 | 16,128 | ||||||
Centrais Eletricas Brasileiras SA | 32,700 | 270,686 | ||||||
Centrais Eletricas Brasileiras SA (Preference), Class B | 21,800 | 191,218 | ||||||
CESC Ltd. | 1,337 | 13,480 | ||||||
CEZ A/S | 7,412 | 172,144 | ||||||
Cia de Transmissao de Energia Eletrica Paulista (Preference) | 7,600 | 40,402 | ||||||
Cia Energetica de Minas Gerais | 6,200 | 27,733 | ||||||
Cia Energetica de Minas Gerais (Preference) | 43,600 | 162,687 |
Investments | Shares | Value | ||||||
Electric Utilities – (continued) | ||||||||
Cia Energetica do Ceara (Preference) | 14,700 | $ | 193,467 | |||||
Cia Paranaense de Energia | 4,400 | 42,426 | ||||||
Cia Paranaense de Energia (Preference) | 8,600 | 89,695 | ||||||
EDP – Energias do Brasil SA | 32,700 | 144,945 | ||||||
Enea SA* | 17,968 | 35,907 | ||||||
Enel Americas SA | 2,671,154 | 467,083 | ||||||
Enel Chile SA | 2,624,938 | 263,583 | ||||||
Energa SA* | 15,903 | 31,157 | ||||||
Energisa SA | 13,000 | 137,559 | ||||||
Enerjisa Enerji A/S(b) | 328,526 | 296,083 | ||||||
Engie Energia Chile SA | 15,830 | 30,254 | ||||||
Equatorial Energia SA* | 6,800 | 141,326 | ||||||
Federal Grid Co. Unified Energy System PJSC | 27,804,080 | 71,472 | ||||||
First Philippine Holdings Corp. | 299,750 | 453,256 | ||||||
Inter RAO UES PJSC | 3,150,754 | 191,258 | ||||||
Interconexion Electrica SA ESP | 40,875 | 199,852 | ||||||
Korea District Heating Corp.* | 4,033 | 198,517 | ||||||
Korea Electric Power Corp. | 25,397 | 615,276 | ||||||
Light SA | 107,500 | 576,646 | ||||||
Manila Electric Co. | 14,170 | 104,686 | ||||||
Mosenergo PJSC | 11,012,924 | 381,409 | ||||||
PGE Polska Grupa Energetyczna SA* | 80,878 | 201,133 | ||||||
Power Grid Corp. of India Ltd. | 79,570 | 213,243 | ||||||
Public Power Corp. SA* | 156,742 | 221,333 | ||||||
Reliance Infrastructure Ltd. | 181,267 | 281,203 | ||||||
ROSSETI PJSC | 2,682,436 | 44,404 | ||||||
RusHydro PJSC | 16,025,507 | 134,006 | ||||||
Tata Power Co. Ltd. (The) | 50,856 | 49,574 | ||||||
Tauron Polska Energia SA* | 1,479,457 | 669,371 | ||||||
Tenaga Nasional Bhd. | 119,900 | 356,119 | ||||||
Torrent Power Ltd. | 5,978 | 21,762 | ||||||
Transmissora Alianca de Energia Eletrica SA | 15,200 | 101,005 | ||||||
7,919,712 | ||||||||
Electrical Equipment – 0.4% | ||||||||
ABB India Ltd. | 2,058 | 43,770 | ||||||
AcBel Polytech, Inc. | 545,000 | 396,832 | ||||||
Amara Raja Batteries Ltd. | 2,733 | 26,026 |
See Accompanying Notes to the Financial Statements.
148 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – (continued) | ||||||||
Bharat Heavy Electricals Ltd. | 37,473 | $ | 38,144 | |||||
Bizlink Holding, Inc. | 5,103 | 32,863 | ||||||
China High Speed Transmission Equipment Group Co. Ltd. | 20,000 | 15,092 | ||||||
Doosan Heavy Industries & Construction Co. Ltd.* | 6,499 | 38,889 | ||||||
ElSewedy Electric Co. | 88,192 | 80,091 | ||||||
Feelux Co. Ltd.* | 1,427 | 10,701 | ||||||
Finolex Cables Ltd. | 2,600 | 16,457 | ||||||
Fullshare Holdings Ltd.* (a) | 305,000 | 34,211 | ||||||
GE T&D India Ltd. | 3,640 | 13,348 | ||||||
Graphite India Ltd. | 2,600 | 14,308 | ||||||
Gunkul Engineering PCL, NVDR | 144,480 | 12,491 | ||||||
Havells India Ltd. | 13,734 | 152,961 | ||||||
HEG Ltd. | 645 | 15,140 | ||||||
Honbridge Holdings Ltd.* | 208,000 | 23,331 | ||||||
Korea Electric Terminal Co. Ltd. | 9,156 | 456,174 | ||||||
Kung Long Batteries Industrial Co. Ltd. | 5,000 | 26,536 | ||||||
LS Corp. | 2,616 | 110,964 | ||||||
LS Industrial Systems Co. Ltd. | 608 | 25,035 | ||||||
Shanghai Electric Group Co. Ltd., Class H(a) | 54,000 | 21,062 | ||||||
Shihlin Electric & Engineering Corp. | 16,000 | 21,617 | ||||||
Taihan Electric Wire Co. Ltd.* | 7,800 | 6,604 | ||||||
Teco Electric and Machinery Co. Ltd. | 199,000 | 148,762 | ||||||
V-Guard Industries Ltd. | 1,032 | 3,233 | ||||||
Voltronic Power Technology Corp. | 3,323 | 65,598 | ||||||
Walsin Lihwa Corp. | 218,000 | 122,048 | ||||||
Yuyang DNU Co. Ltd.* | 2,979 | 20,605 | ||||||
Zhuzhou CRRC Times Electric Co. Ltd., Class H | 26,800 | 135,957 | ||||||
2,128,850 | ||||||||
Electronic Equipment, Instruments & Components – 3.6% | ||||||||
AAC Technologies Holdings, Inc.(a) | 35,000 | 226,183 | ||||||
Asia Optical Co., Inc. | 13,000 | 37,148 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
AU Optronics Corp. | 436,000 | $ | 155,911 | |||||
Aurora Corp. | 4,900 | 15,619 | ||||||
BH Co. Ltd.* | 33,899 | 570,231 | ||||||
Camsing International Holding Ltd. | 22,000 | 23,415 | ||||||
Career Technology MFG. Co. Ltd. | 11,000 | 12,032 | ||||||
Chang Wah Electromaterials, Inc. | 41,000 | 237,500 | ||||||
Cheng Uei Precision Industry Co. Ltd. | 488,000 | 592,214 | ||||||
Chilisin Electronics Corp. | 286,490 | 910,434 | ||||||
China Railway Signal & Communication Corp. Ltd., Class H(b) | 43,008 | 31,576 | ||||||
China Youzan Ltd.* | 232,000 | 18,334 | ||||||
Chin-Poon Industrial Co. Ltd. | 459,000 | 570,389 | ||||||
Chroma ATE, Inc. | 19,000 | 90,693 | ||||||
Chunghwa Precision Test Tech Co. Ltd. | 1,000 | 15,582 | ||||||
Compeq Manufacturing Co. Ltd. | 126,000 | 104,181 | ||||||
Concraft Holding Co. Ltd. | 3,355 | 14,277 | ||||||
Coretronic Corp. | 573,000 | 888,214 | ||||||
Daea TI Co. Ltd. | 1,964 | 10,222 | ||||||
Daeduck Electronics Co. | 81,968 | 743,792 | ||||||
Delta Electronics, Inc. | 93,000 | 489,062 | ||||||
E Ink Holdings, Inc. | 73,000 | 87,290 | ||||||
Elite Material Co. Ltd. | 407,000 | 1,306,573 | ||||||
FLEXium Interconnect, Inc. | 27,138 | 85,100 | ||||||
Flytech Technology Co. Ltd. | 235 | 595 | ||||||
Foxconn Technology Co. Ltd. | 109,000 | 244,096 | ||||||
General Interface Solution Holding Ltd. | 24,000 | 92,813 | ||||||
Genius Electronic Optical Co. Ltd. | 3,000 | 38,397 | ||||||
G-treeBNT Co. Ltd.* | 525 | 11,640 | ||||||
Hana Microelectronics PCL, NVDR | 22,400 | 22,803 | ||||||
Hannstar Board Corp. | 386,000 | 408,472 | ||||||
HannStar Display Corp. | 327,000 | 84,552 | ||||||
Hollysys Automation Technologies Ltd. | 1,700 | 35,581 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 149 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Holy Stone Enterprise Co. Ltd. | 4,000 | $ | 13,268 | |||||
Hon Hai Precision Industry Co. Ltd. | 1,229,920 | 3,458,789 | ||||||
Iljin Materials Co. Ltd.* | 936 | 29,887 | ||||||
Inari Amertron Bhd. | 78,000 | 32,638 | ||||||
Innolux Corp. | 436,000 | 139,685 | ||||||
ITEQ Corp. | 327,000 | 1,074,091 | ||||||
KCE Electronics PCL, NVDR | 27,600 | 21,440 | ||||||
Kingboard Holdings Ltd. | 71,500 | 232,853 | ||||||
Kingboard Laminates Holdings Ltd. | 64,000 | 67,137 | ||||||
L&F Co. Ltd. | 574 | 14,717 | ||||||
Largan Precision Co. Ltd. | 4,300 | 647,066 | ||||||
LG Display Co. Ltd. | 21,691 | 370,445 | ||||||
LG Innotek Co. Ltd. | 746 | 78,231 | ||||||
Lotes Co. Ltd. | 3,256 | 23,076 | ||||||
Merry Electronics Co. Ltd. | 10,161 | 58,531 | ||||||
Pan-International Industrial Corp. | 587,000 | 500,549 | ||||||
Partron Co. Ltd. | 1,768 | 20,962 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 2,616 | 242,979 | ||||||
Samsung SDI Co. Ltd. | 2,616 | 529,627 | ||||||
SFA Engineering Corp. | 2,398 | 86,116 | ||||||
Simplo Technology Co. Ltd. | 6,200 | 52,568 | ||||||
Sinbon Electronics Co. Ltd. | 3,253 | 11,475 | ||||||
Sunny Optical Technology Group Co. Ltd. | 32,700 | 398,674 | ||||||
Supreme Electronics Co. Ltd. | 556,000 | 554,183 | ||||||
Synnex Technology International Corp. | 127,000 | 158,231 | ||||||
Taiwan Union Technology Corp. | 7,000 | 25,485 | ||||||
Telcon RF Pharmaceutical, Inc.* | 2,328 | 14,727 | ||||||
Thinking Electronic Industrial Co. Ltd. | 109,000 | 293,479 | ||||||
Tong Hsing Electronic Industries Ltd. | 6,000 | 22,329 | ||||||
Tongda Group Holdings Ltd.(a) | 6,080,000 | 658,730 | ||||||
TPK Holding Co. Ltd. | 456,000 | 841,138 | ||||||
Tripod Technology Corp. | 39,000 | 124,821 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Unimicron Technology Corp. | 75,000 | $ | 83,614 | |||||
Unitech Printed Circuit Board Corp. | 814,000 | 497,867 | ||||||
VS Industry Bhd. | 30,000 | 8,272 | ||||||
Wah Lee Industrial Corp. | 239,000 | 418,430 | ||||||
Walsin Technology Corp. | 10,378 | 63,475 | ||||||
Wintek Corp.* ‡ (c) | 64,000 | — | ||||||
WiSoL Co. Ltd. | 26,269 | 401,405 | ||||||
WPG Holdings Ltd. | 135,440 | 178,608 | ||||||
WT Microelectronics Co. Ltd. | 56,182 | 74,180 | ||||||
Yageo Corp. | 13,575 | 133,769 | ||||||
Zhen Ding Technology Holding Ltd. | 43,150 | 154,302 | ||||||
20,986,770 | ||||||||
Energy Equipment & Services – 0.4% | ||||||||
Bumi Armada Bhd.* | 4,022,100 | 228,611 | ||||||
China Oilfield Services Ltd., Class H | 76,000 | 81,373 | ||||||
Dialog Group Bhd. | 185,300 | 144,314 | ||||||
Gulf International Services QSC* | 4,696 | 20,403 | ||||||
Sapura Energy Bhd.* | 13,276,200 | 1,043,600 | ||||||
Serba Dinamik Holdings Bhd. | 25,800 | 26,084 | ||||||
TMK PJSC | 512,845 | 469,345 | ||||||
Wison Engineering Services Co. Ltd. | 1,308,000 | 193,397 | ||||||
Yinson Holdings Bhd. | 34,400 | 40,270 | ||||||
2,247,397 | ||||||||
Entertainment – 0.5% | ||||||||
Alibaba Pictures Group Ltd.* (a) | 520,000 | 116,654 | ||||||
Bilibili, Inc., ADR* (a) | 1,800 | 32,040 | ||||||
CD Projekt SA* | 3,161 | 177,451 | ||||||
CJ CGV Co. Ltd. | 670 | 24,634 | ||||||
Com2uSCorp | 520 | 44,426 | ||||||
FingerTango, Inc.* (b) | 1,090,000 | 213,960 | ||||||
Gamania Digital Entertainment Co. Ltd. | 6,000 | 14,660 | ||||||
HUYA, Inc., ADR* | 700 | 16,723 | ||||||
IMAX China Holding, Inc.(b) | 1,900 | 5,231 |
See Accompanying Notes to the Financial Statements.
150 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Entertainment – (continued) | ||||||||
International Games System Co. Ltd. | 3,000 | $ | 24,853 | |||||
iQIYI, Inc., ADR* (a) | 5,836 | 129,034 | ||||||
Jcontentree Corp.* | 2,396 | 11,568 | ||||||
JYP Entertainment Corp. | 1,093 | 27,883 | ||||||
Major Cineplex Group PCL, NVDR | 25,300 | 22,586 | ||||||
Nan Hai Corp. Ltd. | 2,300,000 | 45,441 | ||||||
NCSoft Corp. | 763 | 343,567 | ||||||
NetDragon Websoft Holdings Ltd. | 12,000 | 35,027 | ||||||
NetEase, Inc., ADR | 3,488 | 992,441 | ||||||
Netmarble Corp.* (b) | 1,853 | 202,249 | ||||||
NHN Corp.* | 624 | 44,871 | ||||||
Pearl Abyss Corp.* | 312 | 46,554 | ||||||
PVR Ltd. | 1,040 | 26,458 | ||||||
SM Entertainment Co. Ltd.* | 831 | 29,416 | ||||||
SMI Holdings Group Ltd.* (c) | 72,000 | 21,475 | ||||||
Soft-World International Corp. | 5,000 | 11,860 | ||||||
Studio Dragon Corp.* | 480 | 37,721 | ||||||
Webzen, Inc.* | 474 | 7,547 | ||||||
Wemade Co. Ltd. | 723 | 29,708 | ||||||
XPEC Entertainment, Inc.* ‡ (c) | 14,800 | — | ||||||
2,736,038 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 0.8% | ||||||||
Attacq Ltd. | 22,672 | 22,140 | ||||||
Concentradora Fibra Danhos SA de CV | 41,600 | 60,641 | ||||||
CPN Retail Growth Leasehold REIT | 76,300 | 69,907 | ||||||
Emira Property Fund Ltd. | 614,324 | 609,771 | ||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S | 2,724,782 | 689,241 | ||||||
Equites Property Fund Ltd. | 11,527 | 16,403 | ||||||
Fibra Uno Administracion SA de CV | 152,600 | 226,699 | ||||||
Fortress REIT Ltd., Class A | 47,763 | 64,200 | ||||||
Fortress REIT Ltd., Class B | 37,279 | 28,240 | ||||||
Grivalia Properties REIC AE* | 2,704 | 34,364 | ||||||
Growthpoint Properties Ltd. | 150,134 | 260,552 | ||||||
Hyprop Investments Ltd. | 13,080 | 63,866 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
IGB REIT | 68,800 | $ | 30,951 | |||||
Investec Property Fund Ltd. | 709,590 | 786,990 | ||||||
KLCCP Stapled Group | 18,100 | 33,665 | ||||||
Korea Asset In Trust Co. Ltd. | 77,210 | 280,247 | ||||||
Macquarie Mexico Real Estate Management SA de CV* (b) | 19,100 | 22,631 | ||||||
Pavilion REIT | 46,200 | 20,337 | ||||||
PLA Administradora Industrial S de RL de CV | 25,800 | 42,763 | ||||||
Prologis Property Mexico SA de CV | 10,400 | 22,164 | ||||||
Redefine Properties Ltd. | 242,634 | 166,706 | ||||||
Resilient REIT Ltd.(a) | 32,155 | 127,353 | ||||||
SA Corporate Real Estate Ltd.(a) | 3,560,376 | 881,635 | ||||||
Spring REIT | 43,000 | 19,074 | ||||||
Sunway REIT | 39,400 | 17,820 | ||||||
Vukile Property Fund Ltd. | 32,833 | 47,064 | ||||||
YTL Hospitality REIT | 43,000 | 13,624 | ||||||
Yuexiu REIT | 56,000 | 37,831 | ||||||
4,696,879 | ||||||||
Food & Staples Retailing – 0.9% | ||||||||
Al Meera Consumer Goods Co. QSC | 199 | 7,815 | ||||||
Almacenes Exito SA | 22,563 | 101,114 | ||||||
Atacadao SA* | 15,300 | 82,110 | ||||||
Avenue Supermarts Ltd.* (b) | 4,687 | 87,300 | ||||||
Berli Jucker PCL | 500 | 807 | ||||||
Berli Jucker PCL, NVDR | 64,900 | 104,694 | ||||||
BGF retail Co. Ltd. | 436 | 81,553 | ||||||
Bid Corp. Ltd. | 15,260 | 321,534 | ||||||
BIM Birlesik Magazalar A/S | 10,028 | 139,513 | ||||||
Cencosud SA | 71,177 | 134,567 | ||||||
Cia Brasileira de Distribuicao (Preference)* | 6,300 | 153,900 | ||||||
Clicks Group Ltd. | 12,208 | 166,614 | ||||||
Cosco Capital, Inc. | 4,033,000 | 578,105 | ||||||
CP ALL PCL, NVDR* | 196,200 | 476,288 | ||||||
Dino Polska SA* (b) | 1,806 | 59,915 | ||||||
Dis-Chem Pharmacies Ltd.(b) | 17,784 | 33,468 | ||||||
Dongsuh Cos., Inc. | 2,427 | 40,618 | ||||||
E-MART, Inc. | 872 | 128,395 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 151 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
Eurocash SA | 4,433 | $ | 25,129 | |||||
Grupo Comercial Chedraui SA de CV | 10,400 | 20,480 | ||||||
GS Retail Co. Ltd. | 1,264 | 42,362 | ||||||
Hyundai Greenfood Co. Ltd. | 2,808 | 33,533 | ||||||
InRetail Peru Corp.* (b) | 1,980 | 77,220 | ||||||
Magnit PJSC | 3,052 | 175,811 | ||||||
Massmart Holdings Ltd. | 5,387 | 35,404 | ||||||
Migros Ticaret A/S* | 126,113 | 291,119 | ||||||
Philippine Seven Corp. | 12,771 | 28,183 | ||||||
Pick n Pay Stores Ltd. | 19,293 | 93,355 | ||||||
President Chain Store Corp. | 28,000 | 260,962 | ||||||
Puregold Price Club, Inc. | 26,060 | 20,953 | ||||||
Raia Drogasil SA* | 13,100 | 229,282 | ||||||
Robinsons Retail Holdings, Inc. | 25,190 | 37,703 | ||||||
Shoprite Holdings Ltd. | 19,838 | 238,478 | ||||||
SMU SA* | 125,632 | 33,031 | ||||||
Sok Marketler Ticaret A/S* | 7,298 | 11,296 | ||||||
SPAR Group Ltd. (The) | 10,246 | 138,650 | ||||||
Sumber Alfaria Trijaya Tbk. PT | 774,400 | 55,702 | ||||||
Sun Art Retail Group Ltd.(a) | 119,000 | 103,902 | ||||||
Taiwan FamilyMart Co. Ltd. | 3,000 | 21,456 | ||||||
Taiwan TEA Corp. | 8,000 | 4,039 | ||||||
Wal-Mart de Mexico SAB de CV(a) | 228,900 | 670,351 | ||||||
5,346,711 | ||||||||
Food Products – 1.8% | ||||||||
Alicorp SAA | 24,418 | 78,922 | ||||||
Astra Agro Lestari Tbk. PT | 20,800 | 15,874 | ||||||
Astral Foods Ltd. | 53,519 | 679,429 | ||||||
Avanti Feeds Ltd. | 2,250 | 11,727 | ||||||
AVI Ltd. | 16,023 | 102,757 | ||||||
Binggrae Co. Ltd. | 321 | 20,280 | ||||||
Boustead Plantations Bhd. | 60,200 | 11,648 | ||||||
BRF SA* | 33,300 | 261,743 | ||||||
Britannia Industries Ltd. | 2,507 | 104,385 | ||||||
Camil Alimentos SA* | 174,400 | 304,625 | ||||||
Century Pacific Food, Inc. | 17,700 | 5,210 | ||||||
Charoen Pokphand Enterprise | 254,000 | 482,502 | ||||||
Charoen Pokphand Foods PCL, NVDR | 141,700 | 120,950 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Charoen Pokphand Indonesia Tbk. PT | 335,400 | $ | 124,157 | |||||
China Agri-Industries Holdings Ltd. | 218,000 | 70,301 | ||||||
China Foods Ltd. | 46,789 | 18,369 | ||||||
China Huishan Dairy Holdings Co. Ltd.* ‡ (c) | 158,000 | — | ||||||
China Huiyuan Juice Group Ltd.* (c) | 24,000 | 6,179 | ||||||
China Mengniu Dairy Co. Ltd.* | 125,000 | 462,054 | ||||||
China Modern Dairy Holdings Ltd.* | 185,000 | 27,825 | ||||||
CJ CheilJedang Corp. | 872 | 235,141 | ||||||
CJ CheilJedang Corp. (Preference) | 104 | 12,331 | ||||||
CP Pokphand Co. Ltd. | 720,000 | 61,488 | ||||||
Daesang Corp. | 29,648 | 673,847 | ||||||
Dali Foods Group Co. Ltd.(b) | 109,000 | 77,526 | ||||||
Dongwon F&B Co. Ltd. | 79 | 16,704 | ||||||
Dongwon Industries Co. Ltd. | 94 | 21,485 | ||||||
Dutch Lady Milk Industries Bhd. | 700 | 10,846 | ||||||
Easy Bio, Inc. | 58,206 | 403,105 | ||||||
Farmsco | 688 | 5,124 | ||||||
FGV Holdings Bhd.* | 106,100 | 32,078 | ||||||
Genting Plantations Bhd. | 10,400 | 26,462 | ||||||
GlaxoSmithKline Consumer Healthcare Ltd. | 442 | 46,251 | ||||||
Great Wall Enterprise Co. Ltd. | 77,896 | 88,481 | ||||||
Gruma SAB de CV, Class B | 10,355 | 103,148 | ||||||
Grupo Bimbo SAB de CV, Series A | 98,100 | 217,726 | ||||||
Grupo Lala SAB de CV | 16,800 | 22,344 | ||||||
Grupo Nutresa SA | 14,295 | 118,403 | ||||||
Harim Holdings Co. Ltd. | 4,823 | 55,325 | ||||||
Health & Happiness H&H International Holdings Ltd.* | 10,000 | 61,310 | ||||||
Hortifrut SA | 5,552 | 15,367 | ||||||
Indofood CBP Sukses Makmur Tbk. PT | 124,800 | 85,171 | ||||||
Indofood Sukses Makmur Tbk. PT | 228,900 | 111,639 | ||||||
Industrias Bachoco SAB de CV, Series B | 7,300 | 29,810 | ||||||
IOI Corp. Bhd. | 150,600 | 164,278 |
See Accompanying Notes to the Financial Statements.
152 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Japfa Comfeed Indonesia Tbk. PT | 178,000 | $ | 19,486 | |||||
JBS SA | 98,100 | 490,959 | ||||||
Juhayna Food Industries | 35,793 | 26,886 | ||||||
Kernel Holding SA | 5,952 | 82,405 | ||||||
KRBL Ltd. | 2,726 | 13,024 | ||||||
Kuala Lumpur Kepong Bhd. | 16,500 | 98,733 | ||||||
Lien Hwa Industrial Corp. | 22,826 | 25,041 | ||||||
Lotte Food Co. Ltd. | 16 | 8,629 | ||||||
M Dias Branco SA* | 6,500 | 68,434 | ||||||
Marfrig Global Foods SA* | 272,500 | 504,949 | ||||||
Mayora Indah Tbk. PT | 83,900 | 15,308 | ||||||
Multiexport Foods SA* | 695,638 | 399,146 | ||||||
Namchow Holdings Co. Ltd. | 6,000 | 10,349 | ||||||
Namyang Dairy Products Co. Ltd. | 35 | 18,397 | ||||||
Naturecell Co. Ltd.* | 679 | 7,411 | ||||||
Nestle India Ltd. | 1,199 | 187,991 | ||||||
Nestle Malaysia Bhd. | 2,300 | 81,275 | ||||||
NongShim Co. Ltd. | 208 | 49,946 | ||||||
Oceana Group Ltd. | 2,143 | 10,464 | ||||||
Orion Corp. | 1,090 | 90,417 | ||||||
Orion Holdings Corp. | 1,890 | 30,903 | ||||||
Ottogi Corp. | 94 | 58,421 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk. PT | 122,600 | 9,378 | ||||||
Pioneer Foods Group Ltd.(a) | 6,240 | 37,511 | ||||||
PPB Group Bhd. | 26,480 | 120,151 | ||||||
Pulmuone Co. Ltd.(c) | 2,071 | 228,703 | ||||||
QL Resources Bhd. | 28,330 | 46,731 | ||||||
RCL Foods Ltd. | 6,412 | 6,150 | ||||||
Samyang Corp. | 139 | 7,318 | ||||||
Samyang Foods Co. Ltd. | 86 | 5,816 | ||||||
Samyang Holdings Corp. | 479 | 32,968 | ||||||
Sao Martinho SA | 7,300 | 35,278 | ||||||
Sawit Sumbermas Sarana Tbk. PT | 135,700 | 10,332 | ||||||
Sime Darby Plantation Bhd. | 115,300 | 143,898 | ||||||
SLC Agricola SA | 2,400 | 24,970 | ||||||
SPC Samlip Co. Ltd. | 191 | 21,992 | ||||||
Standard Foods Corp. | 17,652 | 31,247 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Taokaenoi Food & Marketing PCL, Class R, NVDR | 48,800 | $ | 16,509 | |||||
Tata Global Beverages Ltd. | 12,584 | 37,849 | ||||||
Thai Union Group PCL, NVDR | 114,400 | 67,726 | ||||||
Thai Vegetable Oil PCL, NVDR | 15,570 | 13,168 | ||||||
Tiger Brands Ltd. | 8,284 | 143,563 | ||||||
Tingyi Cayman Islands Holding Corp. | 76,000 | 124,965 | ||||||
Tongaat Hulett Ltd.(a) | 153,690 | 229,738 | ||||||
Ulker Biskuvi Sanayi A/S | 9,138 | 29,115 | ||||||
Uni-President China Holdings Ltd. | 69,000 | 63,148 | ||||||
Uni-President Enterprises Corp. | 228,000 | 541,575 | ||||||
United Plantations Bhd. | 3,700 | 23,894 | ||||||
Universal Robina Corp. | 47,960 | 140,164 | ||||||
Want Want China Holdings Ltd. | 327,000 | 259,253 | ||||||
Yashili International Holdings Ltd.* | 34,000 | 4,637 | ||||||
Yihai International Holding Ltd. | 18,000 | 88,791 | ||||||
Zhou Hei Ya International Holdings Co. Ltd.* (b) | 43,000 | 22,691 | ||||||
10,472,130 | ||||||||
Gas Utilities – 0.5% | ||||||||
Aygaz A/S | 121,862 | 188,422 | ||||||
Beijing Enterprises Holdings Ltd. | 49,000 | 260,758 | ||||||
China Gas Holdings Ltd.(a) | 109,000 | 350,811 | ||||||
China Resources Gas Group Ltd. | 40,000 | 185,076 | ||||||
China Tian Lun Gas Holdings Ltd. | 490,500 | 510,169 | ||||||
ENN Energy Holdings Ltd. | 36,500 | 344,743 | ||||||
GAIL India Ltd. | 23,980 | 122,721 | ||||||
Great Taipei Gas Co. Ltd. | 21,000 | 19,844 | ||||||
Grupo Energia Bogota SA ESP | 98,072 | 67,592 | ||||||
Gujarat State Petronet Ltd. | 8,528 | 24,510 | ||||||
Indraprastha Gas Ltd. | 7,224 | 32,488 | ||||||
Infraestructura Energetica Nova SAB de CV(a) | 27,000 | 117,621 | ||||||
Korea Gas Corp. | 2,725 | 107,656 | ||||||
Mahanagar Gas Ltd.(b) | 1,456 | 20,220 | ||||||
Perusahaan Gas Negara Persero Tbk. | 472,100 | 76,861 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 153 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Gas Utilities – (continued) | ||||||||
Petronas Gas Bhd. | 24,500 | $ | 104,767 | |||||
Samchully Co. Ltd. | 2,834 | 225,866 | ||||||
SUI Northern Gas Pipeline* | 568,900 | 304,541 | ||||||
Towngas China Co. Ltd.* | 58,339 | 46,401 | ||||||
Zhongyu Gas Holdings Ltd. | 52,000 | 48,783 | ||||||
3,159,850 | ||||||||
Health Care Equipment & Supplies – 0.1% | ||||||||
Dentium Co. Ltd. | 344 | 20,997 | ||||||
DIO Corp.* | 520 | 17,539 | ||||||
Ginko International Co. Ltd. | 3,000 | 20,533 | ||||||
Hartalega Holdings Bhd. | 65,400 | 79,565 | ||||||
Kossan Rubber Industries | 34,400 | 30,286 | ||||||
Lifetech Scientific Corp.* | 82,000 | 17,246 | ||||||
Microport Scientific Corp. | 11,035 | 10,380 | ||||||
Osstem Implant Co. Ltd.* | 612 | 30,282 | ||||||
Pihsiang Machinery Manufacturing Co. Ltd.* (c) | 5,000 | 2,799 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H | 100,000 | 98,147 | ||||||
St Shine Optical Co. Ltd. | 2,000 | 37,280 | ||||||
Top Glove Corp. Bhd. | 77,900 | 91,758 | ||||||
Value Added Technology Co. Ltd. | 510 | 11,635 | ||||||
468,447 | ||||||||
Health Care Providers & Services – 0.5% | ||||||||
Apollo Hospitals Enterprise Ltd. | 3,911 | 68,404 | ||||||
Bangkok Chain Hospital PCL, NVDR | 72,800 | 41,502 | ||||||
Bangkok Dusit Medical Services PCL, NVDR | 174,400 | 139,301 | ||||||
Bumrungrad Hospital PCL, NVDR | 20,000 | 110,885 | ||||||
Celltrion Healthcare Co. Ltd.* | 2,487 | 160,926 | ||||||
Chabiotech Co. Ltd.* | 1,560 | 25,574 | ||||||
China Resources Medical Holdings Co. Ltd. | 30,000 | 21,796 | ||||||
Chularat Hospital PCL, NVDR | 183,100 | 11,241 | ||||||
Dr Lal PathLabs Ltd.(b) | 430 | 6,456 | ||||||
Fleury SA | 7,200 | 37,820 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Fortis Healthcare Ltd.* | 9,651 | $ | 19,225 | |||||
Genertec Universal Medical Group Co. Ltd.(b) | 1,253,500 | 998,595 | ||||||
Global Cord Blood Corp. | 2,900 | 19,546 | ||||||
Hapvida Participacoes e Investimentos SA(b) | 5,300 | 40,599 | ||||||
HLB Life Science CO Ltd.* | 1,132 | 16,135 | ||||||
IHH Healthcare Bhd. | 130,800 | 175,897 | ||||||
Instituto Hermes Pardini SA | 1,800 | 9,295 | ||||||
KPJ Healthcare Bhd. | 145,424 | 34,470 | ||||||
Life Healthcare Group Holdings Ltd. | 71,111 | 129,214 | ||||||
Medipost Co. Ltd.* | 446 | 13,897 | ||||||
Mitra Keluarga Karyasehat Tbk. PT* (b) | 312,000 | 47,293 | ||||||
Narayana Hrudayalaya Ltd.* (b) | 946 | 2,753 | ||||||
Netcare Ltd. | 72,001 | 120,435 | ||||||
Notre Dame Intermedica Participacoes SA | 12,700 | 112,909 | ||||||
Odontoprev SA | 12,000 | 50,730 | ||||||
Qualicorp Consultoria e Corretora de Seguros SA | 12,000 | 52,249 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | 87,200 | 182,505 | ||||||
Sinopharm Group Co. Ltd., Class H | 54,400 | 213,567 | ||||||
Vibhavadi Medical Center PCL, NVDR | 382,700 | 23,136 | ||||||
2,886,355 | ||||||||
Health Care Technology – 0.1% | ||||||||
Alibaba Health Information Technology Ltd.* | 160,000 | 191,297 | ||||||
Ping An Healthcare and Technology Co. Ltd.* (a) (b) | 21,800 | 106,702 | ||||||
297,999 | ||||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||
Alsea SAB de CV* (a) | 21,900 | 48,790 | ||||||
AmRest Holdings SE* | 4,110 | 44,288 | ||||||
Ananti, Inc.* | 1,058 | 13,133 | ||||||
Berjaya Sports Toto Bhd. | 11,300 | 7,188 |
See Accompanying Notes to the Financial Statements.
154 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
BK Brasil Operacao e Assessoria a Restaurantes SA* | 2,800 | $ | 16,083 | |||||
Bloomberry Resorts Corp. | 239,200 | 58,478 | ||||||
Central Plaza Hotel PCL | 32,800 | 43,922 | ||||||
China Travel International Investment Hong Kong Ltd.(a) | 120,200 | 27,731 | ||||||
Coffee Day Enterprises Ltd.* (b) | 1,720 | 6,420 | ||||||
CVC Brasil Operadora e Agencia de Viagens SA* | 5,900 | 84,819 | ||||||
DoubleUGames Co. Ltd. | 312 | 20,165 | ||||||
Famous Brands Ltd.* | 4,669 | 27,416 | ||||||
Formosa International Hotels Corp. | 2,311 | 11,742 | ||||||
Genting Bhd. | 228,900 | 389,758 | ||||||
Genting Malaysia Bhd. | 141,700 | 108,987 | ||||||
Gourmet Master Co. Ltd. | 4,868 | 31,035 | ||||||
Grand Korea Leisure Co. Ltd. | 1,040 | 20,699 | ||||||
Haichang Ocean Park Holdings Ltd.* (b) | 49,000 | 10,368 | ||||||
Haidilao International Holding Ltd.* (b) | 33,164 | 127,661 | ||||||
Hana Tour Service, Inc. | 403 | 22,183 | ||||||
Huazhu Group Ltd., ADR(a) | 4,796 | 203,350 | ||||||
Imperial Pacific International Holdings Ltd.* | 2,660,000 | 61,029 | ||||||
Indian Hotels Co. Ltd. (The) | 22,940 | 50,907 | ||||||
Jollibee Foods Corp. | 23,980 | 140,164 | ||||||
Jubilant Foodworks Ltd. | 2,807 | 53,615 | ||||||
Kangwon Land, Inc. | 5,232 | 152,282 | ||||||
Magnum Bhd. | 19,400 | 11,402 | ||||||
Minor International PCL, NVDR | 133,100 | 156,343 | ||||||
MK Restaurants Group PCL, NVDR | 10,400 | 23,699 | ||||||
Modetour Network, Inc. | 520 | 9,971 | ||||||
OPAP SA | 11,990 | 128,997 | ||||||
Paradise Co. Ltd. | 2,112 | 33,538 | ||||||
Sun International Ltd.* | 183,338 | 701,956 | ||||||
Thomas Cook India Ltd. | 2,244 | 7,933 | ||||||
Travellers International Hotel Group, Inc.* | 209,900 | 22,677 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Tsogo Sun Holdings Ltd. | 18,411 | $ | 27,637 | |||||
Tuniu Corp., ADR* | 4,100 | 18,860 | ||||||
Xiabuxiabu Catering Management China Holdings Co. Ltd.(b) | 11,500 | 20,228 | ||||||
Yum China Holdings, Inc. | 17,767 | 844,643 | ||||||
3,790,097 | ||||||||
Household Durables – 0.8% | ||||||||
AmTRAN Technology Co. Ltd.* | 1,090,000 | 421,524 | ||||||
Arcelik A/S* | 6,720 | 20,646 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 23,762 | 81,189 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 11,400 | 51,310 | ||||||
Dom Development SA | 11,009 | 232,943 | ||||||
Ez Tec Empreendimentos e Participacoes SA | 3,515 | 19,229 | ||||||
Haier Electronics Group Co. Ltd. | 120,000 | 343,386 | ||||||
Hanssem Co. Ltd. | 650 | 57,313 | ||||||
Hyundai Livart Furniture Co. Ltd. | 17,222 | 308,128 | ||||||
Kasen International Holdings Ltd. | 32,000 | 25,982 | ||||||
Kinpo Electronics | 1,744,000 | 620,821 | ||||||
LG Electronics, Inc. | 10,682 | 693,143 | ||||||
LG Electronics, Inc. (Preference) | 1,345 | 34,887 | ||||||
MRV Engenharia e Participacoes SA | 26,400 | 96,971 | ||||||
Nien Made Enterprise Co. Ltd. | 8,000 | 62,652 | ||||||
PIK Group PJSC | 3,702 | 20,953 | ||||||
Skyworth Digital Holdings Ltd.(a) | 2,616,000 | 773,590 | ||||||
Socovesa SA | 23,620 | 13,840 | ||||||
Symphony Ltd. | 1,272 | 25,016 | ||||||
Tatung Co. Ltd.* | 110,000 | 84,722 | ||||||
TCL Electronics Holdings Ltd. | 872,000 | 466,821 | ||||||
TTK Prestige Ltd. | 202 | 23,809 | ||||||
Whirlpool of India Ltd. | 1,664 | 33,319 | ||||||
Woongjin Coway Co. Ltd. | 2,507 | 188,430 | ||||||
Wuxi Little Swan Co. Ltd., Class B | 5,200 | 34,996 | ||||||
4,735,620 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 155 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Household Products – 0.2% | ||||||||
Hindustan Unilever Ltd. | 33,136 | $ | 837,383 | |||||
Jyothy Laboratories Ltd. | 3,300 | 8,521 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A* (a) | 58,000 | 99,914 | ||||||
Unilever Indonesia Tbk. PT | 54,500 | 174,018 | ||||||
Vinda International Holdings Ltd. | 20,000 | 38,341 | ||||||
1,158,177 | ||||||||
Independent Power and Renewable Electricity Producers – 1.9% | ||||||||
Aboitiz Power Corp. | 93,600 | 67,714 | ||||||
Adani Power Ltd.* | 43,621 | 28,159 | ||||||
AES Gener SA | 216,720 | 58,666 | ||||||
AES Tiete Energia SA | 2 | 1 | ||||||
AES Tiete Energia SA – UNIT* | 5,573 | 15,236 | ||||||
AES Tiete Energia SA (Preference) | 30 | 16 | ||||||
B Grimm Power PCL, NVDR | 41,600 | 43,978 | ||||||
Banpu Power PCL, NVDR | 41,600 | 29,710 | ||||||
BCPG PCL, NVDR | 41,600 | 23,585 | ||||||
Beijing Enterprises Clean Energy Group Ltd.* | 45,780,000 | 735,244 | ||||||
CGN Power Co. Ltd., Class H(b) | 981,000 | 258,836 | ||||||
China Everbright Greentech Ltd.(b) | 34,000 | 24,962 | ||||||
China Longyuan Power Group Corp. Ltd., Class H | 327,000 | 225,075 | ||||||
China Power International Development Ltd. | 500,332 | 133,288 | ||||||
China Resources Power Holdings Co. Ltd. | 184,000 | 257,517 | ||||||
Cia Energetica de Sao Paulo (Preference), Class B | 9,700 | 63,401 | ||||||
Colbun SA | 397,523 | 88,549 | ||||||
Datang International Power Generation Co. Ltd., Class H | 3,924,000 | 1,015,336 | ||||||
Electricity Generating PCL, NVDR | 12,600 | 116,824 | ||||||
Energy Absolute PCL, NVDR | 76,300 | 133,241 | ||||||
Eneva SA* | 316,100 | 1,589,982 | ||||||
Engie Brasil Energia SA | 13,450 | 151,480 |
Investments | Shares | Value | ||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
First Gen Corp. | 1,678,600 | $ | 711,865 | |||||
GCL New Energy Holdings Ltd.* (a) | 10,028,000 | 377,069 | ||||||
Global Power Synergy PCL, NVDR | 17,200 | 33,538 | ||||||
Glow Energy PCL, NVDR | 24,800 | 71,079 | ||||||
Gulf Energy Development PCL, NVDR | 36,000 | 117,839 | ||||||
Huadian Power International Corp. Ltd., Class H | 2,290,000 | 977,834 | ||||||
Huaneng Power International, Inc., Class H | 436,000 | 278,981 | ||||||
Huaneng Renewables Corp. Ltd., Class H | 6,758,000 | 1,946,756 | ||||||
Hub Power Co. Ltd. (The) | 31,200 | 16,322 | ||||||
JSW Energy Ltd.* | 22,880 | 22,978 | ||||||
Kot Addu Power Co. Ltd. | 381,500 | 110,994 | ||||||
Malakoff Corp. Bhd. | 188,100 | 40,036 | ||||||
NHPC Ltd. | 265,633 | 89,176 | ||||||
NTPC Ltd. | 103,071 | 198,647 | ||||||
OGK-2 PJSC | 42,401,545 | 268,352 | ||||||
Ratch Group PCL, NVDR | 9,300 | 18,134 | ||||||
Reliance Power Ltd.* | 932,822 | 81,140 | ||||||
SPCG PCL, NVDR | 664,900 | 374,885 | ||||||
Super Energy Corp. PCL, NVDR* | 638,800 | 12,606 | ||||||
Taiwan Cogeneration Corp. | 18,000 | 15,669 | ||||||
Terna Energy SA* | 3,821 | 29,719 | ||||||
TPI Polene Power PCL, NVDR | 156,000 | 30,296 | ||||||
Unipro PJSC | 1,105,000 | 44,643 | ||||||
10,929,358 | ||||||||
Industrial Conglomerates – 1.7% | ||||||||
3M India Ltd.* | 131 | 43,181 | ||||||
Aamal Co. | 9,622 | 23,783 | ||||||
Aboitiz Equity Ventures, Inc. | 100,280 | 106,991 | ||||||
AG Anadolu Grubu Holding A/S | 174,073 | 370,046 | ||||||
Alfa SAB de CV, Class A(a) | 305,200 | 307,400 | ||||||
Alliance Global Group, Inc. | 348,800 | 100,130 | ||||||
AntarChile SA | 12,787 | 177,127 | ||||||
BGF Co. Ltd. | 48,941 | 345,224 | ||||||
Bidvest Group Ltd. (The) | 15,478 | 234,390 |
See Accompanying Notes to the Financial Statements.
156 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Industrial Conglomerates – (continued) | ||||||||
Boustead Holdings Bhd. | 31,200 | $ | 9,659 | |||||
CITIC Ltd. | 625,000 | 909,769 | ||||||
CJ Corp. | 1,308 | 133,806 | ||||||
CJ Corp. (Preference)* (c) | 174 | 4,022 | ||||||
DMCI Holdings, Inc. | 149,300 | 31,973 | ||||||
Dogan Sirketler Grubu Holding A/S | 35,602 | 6,322 | ||||||
Doosan Corp. | 1,444 | 126,705 | ||||||
Doosan Corp. (Preference) | 416 | 27,314 | ||||||
Dubai Investments PJSC | 214,077 | 79,263 | ||||||
Enka Insaat ve Sanayi A/S | 147,259 | 132,470 | ||||||
Far Eastern New Century Corp. | 378,000 | 412,239 | ||||||
Fosun International Ltd. | 230,500 | 357,264 | ||||||
Godrej Industries Ltd. | 3,377 | 24,973 | ||||||
Grupo Carso SAB de CV, Series A1 | 18,700 | 72,262 | ||||||
Hanwha Corp. | 5,014 | 127,051 | ||||||
Hanwha Corp. (Preference) | 1,425 | 17,993 | ||||||
HAP Seng Consolidated Bhd. | 33,600 | 80,292 | ||||||
Hong Leong Industries Bhd. | 8,600 | 21,965 | ||||||
Hosken Consolidated Investments Ltd. | 75,973 | 588,229 | ||||||
Hyosung Corp. | 13,952 | 896,970 | ||||||
Industries Qatar QSC | 9,374 | 311,501 | ||||||
JG Summit Holdings, Inc. | 151,120 | 191,392 | ||||||
KAP Industrial Holdings Ltd. | 63,408 | 32,508 | ||||||
KOC Holding A/S | 114,777 | 311,481 | ||||||
Kolon Corp. | 9,265 | 216,526 | ||||||
LG Corp. | 12,753 | 796,960 | ||||||
Lotte Corp. | 4,687 | 196,805 | ||||||
LT Group, Inc. | 131,600 | 40,506 | ||||||
MMC Corp. Bhd. | 708,500 | 179,931 | ||||||
Mytilineos Holdings SA | 11,990 | 129,871 | ||||||
Quinenco SA | 12,939 | 34,742 | ||||||
Reunert Ltd. | 4,870 | 26,330 | ||||||
Samsung C&T Corp. | 4,251 | 373,006 | ||||||
San Miguel Corp. | 17,400 | 60,268 | ||||||
Shanghai Industrial Holdings Ltd. | 37,000 | 86,966 | ||||||
Siemens Ltd. | 5,868 | 98,941 | ||||||
Sigdo Koppers SA | 16,555 | 31,179 | ||||||
Sime Darby Bhd. | 150,000 | 84,170 |
Investments | Shares | Value | ||||||
Industrial Conglomerates – (continued) | ||||||||
SK Holdings Co. Ltd. | 3,379 | $ | 741,954 | |||||
SM Investments Corp. | 21,800 | 397,409 | ||||||
Turkiye Sise ve Cam Fabrikalari A/S | 78,480 | 80,196 | ||||||
10,191,455 | ||||||||
Insurance – 3.4% | ||||||||
Anadolu Anonim Turk Sigorta Sirketi | 279,476 | 193,824 | ||||||
Bajaj Finserv Ltd. | 1,853 | 200,354 | ||||||
BB Seguridade Participacoes SA | 32,700 | 233,932 | ||||||
Cathay Financial Holding Co. Ltd. | 823,000 | 1,190,515 | ||||||
China Life Insurance Co. Ltd. | 282,000 | 234,536 | ||||||
China Life Insurance Co. Ltd., Class H | 341,000 | 964,922 | ||||||
China Pacific Insurance Group Co. Ltd., Class H(a) | 261,600 | 1,072,022 | ||||||
China Reinsurance Group Corp., Class H | 8,611,000 | 1,756,137 | ||||||
China Taiping Insurance Holdings Co. Ltd. | 140,800 | 427,134 | ||||||
Cholamandalam Financial Holdings Ltd. | 3,206 | 23,791 | ||||||
DB Insurance Co. Ltd. | 4,796 | 280,826 | ||||||
Discovery Ltd. | 20,165 | 202,631 | ||||||
Fanhua, Inc., ADR | 1,700 | 44,166 | ||||||
Fubon Financial Holding Co. Ltd. | 710,000 | 1,047,733 | ||||||
General Insurance Corp. of India(b) | 8,949 | 30,905 | ||||||
Hanwha General Insurance Co. Ltd. | 80,224 | 345,441 | ||||||
Hanwha Life Insurance Co. Ltd. | 23,544 | 80,418 | ||||||
HDFC Life Insurance Co. Ltd.(b) | 17,222 | 100,169 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 5,886 | 192,732 | ||||||
ICICI Lombard General Insurance Co. Ltd.(b) | 3,640 | 57,219 | ||||||
ICICI Prudential Life Insurance Co. Ltd.(b) | 19,875 | 105,528 | ||||||
IRB Brasil Resseguros S/A | 4,100 | 97,458 | ||||||
Korean Reinsurance Co. | 12,862 | 100,416 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 157 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Liberty Holdings Ltd. | 14,170 | $ | 102,300 | |||||
LotteNon-Life Insurance Co. Ltd.* | 93,631 | 220,822 | ||||||
LPI Capital Bhd. | 9,127 | 34,173 | ||||||
Max Financial Services Ltd.* | 5,068 | 30,432 | ||||||
Mercuries & Associates Holding Ltd. | 654,000 | 370,376 | ||||||
Mercuries Life Insurance Co. Ltd.* | 123,268 | 44,279 | ||||||
Meritz Fire & Marine Insurance Co. Ltd. | 5,668 | 115,480 | ||||||
Mirae Asset Life Insurance Co. Ltd. | 110,090 | 499,488 | ||||||
MMI Holdings Ltd. | 75,864 | 94,458 | ||||||
New China Life Insurance Co. Ltd., Class H | 39,100 | 216,547 | ||||||
Old Mutual Ltd.(a) | 489,737 | 785,356 | ||||||
Orange Life Insurance Ltd.(b) | 3,161 | 96,333 | ||||||
Panin Financial Tbk. PT* | 20,731,800 | 587,765 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H* | 704,000 | 288,047 | ||||||
PICC Property & Casualty Co. Ltd., Class H | 680,000 | 763,607 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 234,500 | 2,823,123 | ||||||
Porto Seguro SA | 4,000 | 54,801 | ||||||
Powszechny Zaklad Ubezpieczen SA | 26,269 | 288,210 | ||||||
Qatar Insurance Co. SAQ | 5,917 | 62,286 | ||||||
Qualitas Controladora SAB de CV, Class I* (a) | 261,600 | 691,580 | ||||||
Rand Merchant Investment Holdings Ltd. | 45,671 | 110,321 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 3,270 | 850,987 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. (Preference) | 194 | 32,800 | ||||||
Samsung Life Insurance Co. Ltd. | 8,720 | 633,761 | ||||||
Sanlam Ltd. | 82,295 | 439,136 | ||||||
Santam Ltd. | 2,471 | 57,858 | ||||||
Shin Kong Financial Holding Co. Ltd. | 1,078,291 | 304,983 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Shinkong Insurance Co. Ltd. | 291,000 | $ | 365,386 | |||||
Sul America SA | 13,200 | 104,255 | ||||||
Tongyang Life Insurance Co. Ltd. | 9,125 | 35,425 | ||||||
ZhongAn Online P&C Insurance Co. Ltd., Class H* (a) (b) | 8,100 | 29,218 | ||||||
20,116,402 | ||||||||
Interactive Media & Services – 3.0% | ||||||||
58.com, Inc., ADR* | 4,142 | 297,354 | ||||||
AfreecaTV Co. Ltd. | 468 | 25,601 | ||||||
Autohome, Inc., ADR* (a) | 2,616 | 302,122 | ||||||
Baidu, Inc., ADR* | 13,080 | 2,174,288 | ||||||
Bitauto Holdings Ltd., ADR* (a) | 1,200 | 15,408 | ||||||
Info Edge India Ltd. | 2,280 | 63,373 | ||||||
Kakao Corp. | 2,944 | 302,427 | ||||||
Momo, Inc., ADR(a) | 6,540 | 229,358 | ||||||
NAVER Corp. | 6,867 | 702,484 | ||||||
SINA Corp.* | 2,943 | 185,232 | ||||||
Tencent Holdings Ltd. | 257,500 | 12,734,851 | ||||||
Tian Ge Interactive Holdings Ltd.(b) | 25,000 | 7,743 | ||||||
Weibo Corp., ADR* | 2,943 | 201,596 | ||||||
YY, Inc., ADR* | 2,289 | 193,672 | ||||||
17,435,509 | ||||||||
Internet & Direct Marketing Retail – 3.6% | ||||||||
Alibaba Group Holding Ltd., ADR* | 60,495 | 11,226,057 | ||||||
B2W Cia Digital* | 6,247 | 60,489 | ||||||
Baozun, Inc., ADR* (a) | 1,300 | 63,050 | ||||||
CJ ENM Co. Ltd. | 1,090 | 204,255 | ||||||
Ctrip.com International Ltd., ADR* | 17,876 | 787,438 | ||||||
GS Home Shopping, Inc. | 133 | 19,492 | ||||||
Hyundai Home Shopping Network Corp. | 293 | 25,082 | ||||||
JD.com, Inc., ADR* | 38,259 | 1,158,100 | ||||||
Meituan Dianping, Class B* (a) (b) | 177,700 | 1,291,062 | ||||||
momo.com, Inc. | 1,000 | 8,916 | ||||||
Naspers Ltd., Class N | 20,383 | 5,196,750 | ||||||
NS Shopping Co. Ltd. | 23,108 | 282,878 |
See Accompanying Notes to the Financial Statements.
158 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Internet & Direct Marketing Retail – (continued) | ||||||||
PChome Online, Inc.* | 2,763 | $ | 11,758 | |||||
Pinduoduo, Inc., ADR* (a) | 4,156 | 92,388 | ||||||
Vipshop Holdings Ltd., ADR* | 43,600 | 375,396 | ||||||
20,803,111 | ||||||||
IT Services – 1.0% | ||||||||
21Vianet Group, Inc., ADR* | 2,400 | 18,864 | ||||||
AGTech Holdings Ltd.* (a) | 84,000 | 5,032 | ||||||
Cafe24 Corp.* | 360 | 29,585 | ||||||
Chinasoft International Ltd.* | 102,000 | 58,116 | ||||||
Cielo SA | 54,500 | 105,956 | ||||||
Digital China Holdings Ltd. | 58,000 | 27,649 | ||||||
GDS Holdings Ltd., ADR* (a) | 2,400 | 93,912 | ||||||
HCL Technologies Ltd. | 25,724 | 437,654 | ||||||
Hexaware Technologies Ltd. | 3,640 | 18,236 | ||||||
Infosys Ltd. | 177,452 | 1,916,914 | ||||||
Kginicis Co. Ltd. | 23,544 | 288,216 | ||||||
Larsen & Toubro Infotech Ltd.(b) | 2,651 | 65,437 | ||||||
Mindtree Ltd. | 4,608 | 65,009 | ||||||
Mphasis Ltd. | 3,418 | 47,638 | ||||||
My EG Services Bhd.* | 130,600 | 47,382 | ||||||
NIIT Technologies Ltd. | 928 | 17,258 | ||||||
Persistent Systems Ltd. | 900 | 8,233 | ||||||
Posco ICT Co. Ltd. | 2,080 | 10,203 | ||||||
Samsung SDS Co. Ltd. | 1,853 | 344,220 | ||||||
SONDA SA | 24,083 | 37,438 | ||||||
Systex Corp. | 9,000 | 19,776 | ||||||
Tata Consultancy Services Ltd. | 42,074 | 1,367,316 | ||||||
Tech Mahindra Ltd. | 21,800 | 262,056 | ||||||
TravelSky Technology Ltd., Class H | 38,000 | 97,599 | ||||||
Wipro Ltd. | 65,684 | 281,940 | ||||||
5,671,639 | ||||||||
Leisure Products – 0.0%(d) | ||||||||
Giant Manufacturing Co. Ltd. | 13,000 | 99,075 | ||||||
HLB, Inc.* | 1,635 | 117,431 | ||||||
KMC Kuei Meng International, Inc. | 3,315 | 12,122 | ||||||
Merida Industry Co. Ltd. | 9,350 | 54,464 | ||||||
283,092 |
Investments | Shares | Value | ||||||
Life Sciences Tools & Services – 0.1% | ||||||||
Divi’s Laboratories Ltd. | 4,147 | $ | 104,152 | |||||
Genscript Biotech Corp.* | 46,000 | 117,266 | ||||||
LegoChem Biosciences, Inc.* | 478 | 24,224 | ||||||
Samsung Biologics Co. Ltd.* (b) | 763 | 222,078 | ||||||
ST Pharm Co. Ltd. | 344 | 6,729 | ||||||
Syngene International Ltd.(b) | 860 | 7,588 | ||||||
Wuxi Biologics Cayman, Inc.* (b) | 19,500 | 196,109 | ||||||
678,146 | ||||||||
Machinery – 0.6% | ||||||||
AIA Engineering Ltd.* | 1,599 | 41,719 | ||||||
Airtac International Group | 6,784 | 90,450 | ||||||
Ashok Leyland Ltd. | 66,163 | 82,711 | ||||||
China Conch Venture Holdings Ltd. | 82,000 | 276,978 | ||||||
China International Marine Containers Group Co. Ltd., Class H(a) | 37,400 | 47,147 | ||||||
CIMC Enric Holdings Ltd. | 36,000 | 34,966 | ||||||
CRRC Corp. Ltd., Class H | 180,000 | 157,162 | ||||||
Cummins India Ltd. | 2,280 | 23,820 | ||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd.* | 1,692 | 42,077 | ||||||
Doosan Bobcat, Inc. | 1,462 | 39,987 | ||||||
Doosan Infracore Co. Ltd.* | 15,587 | 97,006 | ||||||
Escorts Ltd. | 1,997 | 21,215 | ||||||
Famur SA | 1,118 | 1,414 | ||||||
Haitian International Holdings Ltd. | 30,000 | 75,101 | ||||||
Hiwin Technologies Corp. | 9,629 | 91,457 | ||||||
Hyundai Construction Equipment Co. Ltd. | 624 | 26,175 | ||||||
Hyundai Elevator Co. Ltd. | 633 | 46,602 | ||||||
Hyundai Heavy Industries Co. Ltd.* | 2,071 | 220,725 | ||||||
Hyundai Heavy Industries Holdings Co. Ltd. | 436 | 127,648 | ||||||
Hyundai Mipo Dockyard Co. Ltd. | 1,392 | 66,969 | ||||||
Hyundai Rotem Co. Ltd.* | 1,951 | 36,243 | ||||||
Iochpe Maxion SA* | 7,700 | 38,750 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 159 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
King Slide Works Co. Ltd. | 3,000 | $ | 31,504 | |||||
Lakshmi Machine Works Ltd. | 148 | 12,284 | ||||||
Lonking Holdings Ltd. | 2,289,000 | 776,090 | ||||||
Marcopolo SA (Preference)* | 32,659 | 29,102 | ||||||
QST International Corp. | 80,000 | 209,443 | ||||||
Randon SA Implementos e Participacoes (Preference) | 11,300 | 24,315 | ||||||
Rechi Precision Co. Ltd. | 21,969 | 18,378 | ||||||
Samsung Heavy Industries Co. Ltd.* | 24,376 | 171,528 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd.* | 46,000 | 21,987 | ||||||
Shanghai Zhenhua Heavy Industries Co. Ltd., Class B | 37,440 | 14,414 | ||||||
Shin Zu Shing Co. Ltd. | 4,000 | 15,210 | ||||||
Sinotruk Hong Kong Ltd.(a) | 69,000 | 149,338 | ||||||
SKF India Ltd. | 624 | 17,718 | ||||||
Sunonwealth Electric Machine Industry Co. Ltd. | 8,000 | 9,372 | ||||||
Thermax Ltd. | 2,214 | 31,025 | ||||||
WEG SA | 32,700 | 153,803 | ||||||
Weichai Power Co. Ltd., Class H(a) | 181,000 | 295,768 | ||||||
3,667,601 | ||||||||
Marine – 0.5% | ||||||||
Cia Sud Americana de Vapores SA* | 797,784 | 25,377 | ||||||
COSCO SHIPPING Energy Transportation Co. Ltd., Class H | 34,000 | 21,972 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class H* | 3,651,500 | 1,698,827 | ||||||
Evergreen Marine Corp. Taiwan Ltd. | 115,420 | 50,611 | ||||||
Hyundai Merchant Marine Co. Ltd.* | 10,455 | 35,979 | ||||||
Korea Line Corp.* | 19,184 | 393,320 | ||||||
MISC Bhd. | 65,400 | 109,145 | ||||||
Pan Ocean Co. Ltd.* | 13,007 | 53,057 | ||||||
Qatar Navigation QSC | 2,231 | 41,418 |
Investments | Shares | Value | ||||||
Marine – (continued) | ||||||||
U-Ming Marine Transport Corp. | 25,000 | $ | 26,132 | |||||
Wan Hai Lines Ltd. | 61,000 | 32,177 | ||||||
Wisdom Marine Lines Co. Ltd.* | 460,000 | 437,656 | ||||||
Yang Ming Marine Transport Corp.* | 53,000 | 15,042 | ||||||
2,940,713 | ||||||||
Media – 0.5% | ||||||||
Astro Malaysia Holdings Bhd. | 133,000 | 46,644 | ||||||
Cheil Worldwide, Inc. | 3,633 | 79,151 | ||||||
China Literature Ltd.* (a) (b) | 16,800 | 76,233 | ||||||
CJ Hello Co. Ltd. | 625 | 4,633 | ||||||
Cyfrowy Polsat SA | 13,080 | 90,546 | ||||||
Dish TV India Ltd. | 17,517 | 9,067 | ||||||
Grupo Televisa SAB, Series CPO(a) | 109,000 | 220,946 | ||||||
Innocean Worldwide, Inc. | 520 | 31,739 | ||||||
KT Skylife Co. Ltd. | 28,558 | 288,477 | ||||||
Media Nusantara Citra Tbk. PT | 8,720,000 | 575,214 | ||||||
Megacable Holdings SAB de CV(a) | 9,700 | 42,583 | ||||||
Plan B Media PCL, NVDR* | 72,800 | 15,506 | ||||||
Smiles Fidelidade SA | 81,300 | 1,008,455 | ||||||
Sun TV Network Ltd. | 4,576 | 37,781 | ||||||
Surya Citra Media Tbk. PT | 342,700 | 44,731 | ||||||
TV18 Broadcast Ltd.* | 16,016 | 7,208 | ||||||
VGI Global Media PCL, NVDR | 114,400 | 34,580 | ||||||
Zee Entertainment Enterprises Ltd. | 23,980 | 149,147 | ||||||
2,762,641 | ||||||||
Metals & Mining – 4.7% | ||||||||
African Rainbow Minerals Ltd. | 8,502 | 100,853 | ||||||
Alrosa PJSC | 250,918 | 366,134 | ||||||
Aluminum Corp. of China Ltd., Class H* (a) | 114,000 | 44,610 | ||||||
Aneka Tambang Tbk.* | 1,158,010 | 70,293 | ||||||
Angang Steel Co. Ltd., Class H(a) | 1,526,000 | 1,025,062 | ||||||
Anglo American Platinum Ltd.(a) | 2,682 | 135,065 | ||||||
AngloGold Ashanti Ltd. | 40,875 | 491,284 | ||||||
Assore Ltd. | 4,687 | 121,423 |
See Accompanying Notes to the Financial Statements.
160 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Bradespar SA* | 3,600 | $ | 25,626 | |||||
Bradespar SA (Preference)* | 10,900 | 88,021 | ||||||
CAP SA | 103,114 | 1,173,929 | ||||||
Century Iron & Steel Industrial Co. Ltd. | 8,000 | 15,766 | ||||||
China Hongqiao Group Ltd. | 218,000 | 179,504 | ||||||
China Metal Recycling Holdings Ltd.* ‡ (c) | 51,000 | — | ||||||
China Metal Resources Utilization Ltd.* (b) | 56,000 | 27,410 | ||||||
China Molybdenum Co. Ltd., Class H(a) | 5,086,200 | 1,912,495 | ||||||
China Nonferrous Mining Corp. Ltd. | 1,199,000 | 310,242 | ||||||
China Oriental Group Co. Ltd. | 110,000 | 67,441 | ||||||
China Steel Corp. | 585,000 | 472,339 | ||||||
China Zhongwang Holdings Ltd. | 174,400 | 95,143 | ||||||
Chung Hung Steel Corp.* | 1,199,000 | 477,256 | ||||||
Cia Siderurgica Nacional SA* | 32,700 | 120,360 | ||||||
Dongkuk Steel Mill Co. Ltd.* | 1,767 | 11,420 | ||||||
Eregli Demir ve Celik Fabrikalari TAS | 159,685 | 245,031 | ||||||
Feng Hsin Steel Co. Ltd. | 26,000 | 51,157 | ||||||
Gerdau SA (Preference) | 47,982 | 171,872 | ||||||
Gloria Material Technology Corp. | 18,000 | 11,504 | ||||||
Gold Fields Ltd. | 81,096 | 305,179 | ||||||
Grupa Kety SA | 331 | 29,917 | ||||||
Grupo Mexico SAB de CV, Series B | 348,800 | 1,019,287 | ||||||
Harmony Gold Mining Co. Ltd.* | 654,109 | 1,119,668 | ||||||
Hindalco Industries Ltd. | 40,657 | 120,445 | ||||||
Hyundai Steel Co. | 8,393 | 332,659 | ||||||
Impala Platinum Holdings Ltd.* | 23,398 | 93,453 | ||||||
Industrias CH SAB de CV, Series B* | 6,600 | 30,681 | ||||||
Industrias Penoles SAB de CV | 6,540 | 74,800 | ||||||
Jastrzebska Spolka Weglowa SA* | 5,123 | 77,686 | ||||||
Jenax, Inc.* | 705 | 8,811 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Jiangxi Copper Co. Ltd., Class H | 109,000 | $ | 144,492 | |||||
Jinchuan Group International Resources Co. Ltd.* (a) | 5,559,000 | 517,255 | ||||||
Jindal Steel & Power Ltd.* | 20,072 | 51,397 | ||||||
JSW Steel Ltd. | 47,197 | 209,237 | ||||||
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class D* | 17,887 | 6,772 | ||||||
KGHM Polska Miedz SA* | 13,407 | 360,207 | ||||||
KISWIRE Ltd. | 720 | 15,810 | ||||||
Korea Zinc Co. Ltd. | 545 | 211,114 | ||||||
Koza Altin Isletmeleri A/S* | 2,182 | 15,564 | ||||||
Kumba Iron Ore Ltd. | 2,246 | 67,155 | ||||||
Maanshan Iron & Steel Co. Ltd., Class H(a) | 2,502,000 | 1,151,276 | ||||||
Magnitogorsk Iron & Steel Works PJSC | 183,338 | 125,485 | ||||||
Mechel PJSC* | 291,793 | 308,026 | ||||||
Mechel PJSC (Preference) | 115,649 | 190,099 | ||||||
Metalurgica Gerdau SA (Preference) | 54,500 | 93,816 | ||||||
MMC Norilsk Nickel PJSC | 2,903 | 644,727 | ||||||
MMG Ltd.* | 192,000 | 82,963 | ||||||
MOIL Ltd. | 2,808 | 6,211 | ||||||
National Aluminium Co. Ltd. | 27,956 | 20,820 | ||||||
Nickel Asia Corp. | 6,816,800 | 313,942 | ||||||
NMDC Ltd. | 72,049 | 104,054 | ||||||
Northam Platinum Ltd.* | 10,806 | 44,924 | ||||||
Novolipetsk Steel PJSC | 95,375 | 252,699 | ||||||
Polyus PJSC | 2,465 | 192,287 | ||||||
Poongsan Corp. | 24,852 | 591,436 | ||||||
POSCO | 7,957 | 1,736,964 | ||||||
Press Metal Aluminium Holdings Bhd. | 119,900 | 137,749 | ||||||
Raspadskaya OJSC* | 179,741 | 380,427 | ||||||
Seah Besteel Corp. | 17,113 | 287,866 | ||||||
Severstal PJSC | 20,274 | 328,139 | ||||||
Shandong Gold Mining Co. Ltd., Class H* (b) | 15,000 | 32,388 | ||||||
Shougang Fushan Resources Group Ltd. | 4,796,000 | 1,161,496 | ||||||
Sibanye Gold Ltd.* (a) | 161,974 | 151,961 | ||||||
Stalprodukt SA | 2,398 | 216,115 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 161 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Steel Authority of India Ltd.* | 79,638 | $ | 63,890 | |||||
TA Chen Stainless Pipe | 80,962 | 114,889 | ||||||
Tata Steel Ltd. | 25,942 | 207,823 | ||||||
Tung Ho Steel Enterprise Corp. | 64,000 | 45,772 | ||||||
Usinas Siderurgicas de Minas Gerais SA Usiminas (Preference), Class A | 23,300 | 50,902 | ||||||
Vale Indonesia Tbk. PT* | 134,900 | 28,873 | ||||||
Vale SA | 309,000 | 3,918,918 | ||||||
Vedanta Ltd. | 163,936 | 393,260 | ||||||
Volcan Cia Minera SAA, Class B | 3,435,571 | 570,779 | ||||||
YC INOX Co. Ltd. | 436,000 | 368,965 | ||||||
Yieh Phui Enterprise Co. Ltd. | 1,962,000 | 598,105 | ||||||
Young Poong Corp. | 65 | 43,124 | ||||||
Zhaojin Mining Industry Co. Ltd., Class H(a) | 36,000 | 30,974 | ||||||
Zijin Mining Group Co. Ltd., Class H | 336,000 | 131,053 | ||||||
27,746,026 | ||||||||
Multiline Retail – 0.3% | ||||||||
Aeon Co. M Bhd. | 28,000 | 9,752 | ||||||
El Puerto de Liverpool SAB de CV, Class C1 | 10,900 | 70,318 | ||||||
Far Eastern Department Stores Ltd. | 83,012 | 44,057 | ||||||
Future Retail Ltd.* | 7,735 | 46,730 | ||||||
Golden Eagle Retail Group Ltd. | 27,000 | 32,006 | ||||||
Hyundai Department Store Co. Ltd. | 1,853 | 161,006 | ||||||
Lojas Americanas SA* | 5,250 | 17,011 | ||||||
Lojas Americanas SA (Preference) | 32,700 | 130,128 | ||||||
Lojas Renner SA | 32,700 | 388,066 | ||||||
Lotte Shopping Co. Ltd. | 545 | 83,046 | ||||||
Magazine Luiza SA | 3,100 | 150,091 | ||||||
Matahari Department Store Tbk. PT | 228,900 | 65,377 | ||||||
Mitra Adiperkasa Tbk. PT | 258,000 | 18,015 | ||||||
Poya International Co. Ltd. | 3,000 | 36,358 | ||||||
Ripley Corp. SA | 50,856 | 43,646 |
Investments | Shares | Value | ||||||
Multiline Retail – (continued) | ||||||||
Robinson PCL, NVDR | 24,900 | $ | 45,432 | |||||
SACI Falabella | 28,014 | 206,078 | ||||||
Shinsegae, Inc. | 327 | 95,176 | ||||||
Woolworths Holdings Ltd. | 44,908 | 149,451 | ||||||
1,791,744 | ||||||||
Multi-Utilities – 0.0%(d) | ||||||||
Qatar Electricity & Water Co. QSC | 2,289 | 104,975 | ||||||
YTL Corp. Bhd. | 186,726 | 51,034 | ||||||
YTL Power International Bhd. | 250,900 | 54,009 | ||||||
210,018 | ||||||||
Oil, Gas & Consumable Fuels – 5.7% | ||||||||
Adaro Energy Tbk. PT | 1,547,800 | 141,746 | ||||||
Bangchak Corp. PCL, NVDR | 41,600 | 42,349 | ||||||
Banpu PCL, NVDR | 185,300 | 95,189 | ||||||
Bashneft PJSC | 720 | 23,637 | ||||||
Bashneft PJSC (Preference) | 1,163 | 34,119 | ||||||
Bharat Petroleum Corp. Ltd. | 76,845 | 419,669 | ||||||
Bukit Asam Tbk. PT* | 130,900 | 36,376 | ||||||
Bumi Resources Tbk. PT* | 1,552,600 | 13,401 | ||||||
China Coal Energy Co. Ltd., Class H | 218,000 | 96,143 | ||||||
China Petroleum & Chemical Corp., Class H | 2,518,000 | 1,935,343 | ||||||
China Shenhua Energy Co. Ltd., Class H | 338,000 | 747,052 | ||||||
CNOOC Ltd. | 1,588,000 | 2,870,197 | ||||||
Coal India Ltd. | 62,457 | 226,423 | ||||||
Cosan SA | 6,700 | 79,495 | ||||||
Dana Gas PJSC | 350,544 | 91,044 | ||||||
E1 Corp. | 5,886 | 323,991 | ||||||
Ecopetrol SA | 233,151 | 215,093 | ||||||
Empresas COPEC SA | 16,350 | 204,471 | ||||||
Empresas Lipigas SA | 4,766 | 37,816 | ||||||
Enauta Participacoes SA | 4,600 | 15,604 | ||||||
Esso Thailand PCL, NVDR | 135,200 | 47,008 | ||||||
Exxaro Resources Ltd. | 24,852 | 283,134 | ||||||
Formosa Petrochemical Corp. | 81,000 | 300,136 | ||||||
Gazprom PJSC | 541,754 | 1,375,410 | ||||||
Gazprom PJSC, ADR | 10,779 | 53,830 | ||||||
Great Eastern Shipping Co. Ltd. (The) | 878 | 3,646 |
See Accompanying Notes to the Financial Statements.
162 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Grupa Lotos SA | 8,611 | $ | 187,062 | |||||
GS Holdings Corp. | 4,796 | 213,493 | ||||||
Hellenic Petroleum SA | 6,163 | 56,982 | ||||||
Hindustan Petroleum Corp. Ltd. | 62,784 | 262,902 | ||||||
IDG Energy Investment Ltd.* | 162,000 | 22,920 | ||||||
Indian Oil Corp. Ltd. | 205,792 | 467,630 | ||||||
Indika Energy Tbk. PT | 2,343,500 | 280,398 | ||||||
Indo Tambangraya Megah Tbk. PT | 41,600 | 56,124 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B | 98,100 | 117,426 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class H | 20,800 | 18,400 | ||||||
IRPC PCL, NVDR | 991,900 | 175,544 | ||||||
Kunlun Energy Co. Ltd. | 324,000 | 341,948 | ||||||
Lubelski Wegiel Bogdanka SA* | 16,132 | 170,671 | ||||||
LUKOIL PJSC | 17,549 | 1,497,620 | ||||||
Mangalore Refinery & Petrochemicals Ltd. | 15,060 | 15,557 | ||||||
Mari Petroleum Co. Ltd. | 1,804 | 14,912 | ||||||
Medco Energi Internasional Tbk. PT* | 405,400 | 25,035 | ||||||
MOL Hungarian Oil & Gas plc | 46,979 | 539,093 | ||||||
Motor Oil Hellas Corinth Refineries SA | 6,540 | 166,670 | ||||||
Novatek PJSC | 39,785 | 742,501 | ||||||
Oil & Gas Development Co. Ltd. | 76,300 | 76,019 | ||||||
Oil & Natural Gas Corp. Ltd. | 277,405 | 674,830 | ||||||
Oil India Ltd. | 32,214 | 83,761 | ||||||
Pakistan Oilfields Ltd. | 6,240 | 18,746 | ||||||
Pakistan Petroleum Ltd. | 56,525 | 67,798 | ||||||
Pakistan State Oil Co. Ltd. | 15,854 | 21,793 | ||||||
PetroChina Co. Ltd., Class H | 974,000 | 618,263 | ||||||
Petroleo Brasileiro SA* | 294,300 | 2,232,040 | ||||||
Petroleo Brasileiro SA (Preference) | 436,000 | 2,992,168 | ||||||
Petron Corp. | 3,128,300 | 372,184 | ||||||
Petronas Dagangan Bhd. | 15,200 | 88,895 | ||||||
Petronet LNG Ltd. | 33,681 | 116,776 | ||||||
Pilipinas Shell Petroleum Corp. | 24,960 | 21,649 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Polski Koncern Naftowy ORLEN SA | 28,776 | $ | 736,069 | |||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 158,813 | 240,619 | ||||||
PTT Exploration & Production PCL | 469 | 1,961 | ||||||
PTT Exploration & Production PCL, NVDR | 64,931 | 271,520 | ||||||
PTT PCL, NVDR | 850,200 | 1,298,269 | ||||||
Qatar Fuel QSC | 2,071 | 114,321 | ||||||
Qatar Gas Transport Co. Ltd. | 11,058 | 65,050 | ||||||
Reliance Industries Ltd. | 145,079 | 2,905,178 | ||||||
Rosneft Oil Co. PJSC | 48,460 | 321,778 | ||||||
Rosneft Oil Co. PJSC, GDR(b) | 6,040 | 40,178 | ||||||
RussNeft PJSC* | 2,048 | 17,937 | ||||||
Semirara Mining & Power Corp. | 102,400 | 46,865 | ||||||
Siamgas & Petrochemicals PCL, NVDR | 1,013,700 | 330,226 | ||||||
Sinopec Kantons Holdings Ltd. | 1,390,000 | 620,109 | ||||||
SK Gas Ltd. | 5,608 | 412,419 | ||||||
SK Innovation Co. Ltd. | 6,104 | 953,628 | ||||||
S-Oil Corp. | 1,853 | 146,254 | ||||||
S-Oil Corp. (Preference) | 208 | 11,520 | ||||||
Star Petroleum Refining PCL, NVDR | 51,900 | 17,232 | ||||||
Surgutneftegas PJSC | 353,977 | 134,651 | ||||||
Surgutneftegas PJSC, ADR | 3,506 | 13,119 | ||||||
Surgutneftegas PJSC, ADR, OTC | 12,422 | 74,843 | ||||||
Surgutneftegas PJSC (Preference) | 252,553 | 153,169 | ||||||
Tatneft PJSC | 41,249 | 483,855 | ||||||
Tatneft PJSC, ADR | 5,424 | 381,090 | ||||||
Tatneft PJSC (Preference) | 7,007 | 68,857 | ||||||
Thai Oil PCL, NVDR | 76,300 | 165,506 | ||||||
Transneft PJSC (Preference) | 79 | 205,521 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 12,208 | 252,156 | ||||||
Ultrapar Participacoes SA | 43,600 | 231,780 | ||||||
United Tractors Tbk. PT | 76,300 | 145,505 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H | 184,000 | 196,069 | ||||||
33,527,386 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 163 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – 0.7% | ||||||||
Duratex SA | 16,474 | $ | 41,453 | |||||
Empresas CMPC SA | 53,301 | 178,784 | ||||||
Hansol Paper Co. Ltd. | 23,762 | 304,106 | ||||||
Indah Kiat Pulp & Paper Corp. Tbk. PT | 261,600 | 135,848 | ||||||
Lee & Man Paper Manufacturing Ltd. | 139,000 | 112,683 | ||||||
Long Chen Paper Co. Ltd. | 849,350 | 497,500 | ||||||
Mondi Ltd. | 5,668 | 124,654 | ||||||
Moorim P&P Co., Ltd. | 29,757 | 155,389 | ||||||
Nine Dragons Paper Holdings Ltd. | 159,000 | 146,933 | ||||||
Pabrik Kertas Tjiwi Kimia Tbk. PT | 119,900 | 84,771 | ||||||
Pfleiderer Group SA | 38,913 | 253,111 | ||||||
Sappi Ltd. | 55,372 | 263,337 | ||||||
Shandong Chenming Paper Holdings Ltd., Class B | 697,600 | 354,784 | ||||||
Shandong Chenming Paper Holdings Ltd., Class H(a) | 436,000 | 226,186 | ||||||
Suzano SA | 28,474 | 293,584 | ||||||
YFY, Inc. | 1,853,000 | 713,592 | ||||||
3,886,715 | ||||||||
Personal Products – 0.4% | ||||||||
Amorepacific Corp. | 1,417 | 252,310 | ||||||
Amorepacific Corp. (Preference) | 545 | 54,586 | ||||||
AMOREPACIFIC Group | 1,417 | 91,220 | ||||||
AMOREPACIFIC Group (Preference) | 312 | 9,014 | ||||||
Chlitina Holding Ltd. | 2,000 | 16,375 | ||||||
Colgate-Palmolive India Ltd. | 2,518 | 43,738 | ||||||
Cosmax, Inc. | 322 | 38,178 | ||||||
Dabur India Ltd. | 24,089 | 137,877 | ||||||
Emami Ltd. | 4,766 | 26,529 | ||||||
Gillette India Ltd. | 615 | 66,664 | ||||||
Godrej Consumer Products Ltd. | 17,222 | 161,390 | ||||||
Grape King Bio Ltd. | 5,000 | 34,708 | ||||||
Hengan International Group Co. Ltd. | 35,000 | 308,493 | ||||||
It’s Hanbul Co. Ltd. | 501 | 12,974 |
Investments | Shares | Value | ||||||
Personal Products – (continued) | ||||||||
Kolmar BNH Co. Ltd. | 688 | $ | 17,021 | |||||
Kolmar Korea Co. Ltd. | 643 | 40,733 | ||||||
Kolmar Korea Holdings Co. Ltd. | 10,028 | 311,618 | ||||||
LG Household & Health Care Ltd. | 436 | 530,747 | ||||||
LG Household & Health Care Ltd. (Preference) | 97 | 67,177 | ||||||
Marico Ltd. | 19,620 | 101,381 | ||||||
Natura Cosmeticos SA | 6,800 | 89,925 | ||||||
Procter & Gamble Hygiene & Health Care Ltd. | 344 | 50,465 | ||||||
TCI Co. Ltd. | 3,644 | 54,363 | ||||||
2,517,486 | ||||||||
Pharmaceuticals – 0.8% | ||||||||
Adcock Ingram Holdings Ltd. | 5,074 | 23,303 | ||||||
Ajanta Pharma Ltd. | 1,415 | 20,149 | ||||||
Alembic Pharmaceuticals Ltd. | 2,150 | 17,225 | ||||||
Alkem Laboratories Ltd. | 1,560 | 38,540 | ||||||
Aspen Pharmacare Holdings Ltd. | 17,767 | 127,525 | ||||||
Aurobindo Pharma Ltd. | 15,042 | 177,131 | ||||||
Beijing Tong Ren Tang Chinese Medicine Co. Ltd. | 10,000 | 18,941 | ||||||
Bukwang Pharmaceutical Co. Ltd. | 1,970 | 30,946 | ||||||
Cadila Healthcare Ltd. | 14,770 | 69,110 | ||||||
Caregen Co. Ltd.(c) | 258 | 16,896 | ||||||
Celltrion Pharm, Inc.* | 697 | 35,442 | ||||||
Center Laboratories, Inc. | 3,541 | 8,995 | ||||||
China Grand Pharmaceutical and Healthcare Holdings Ltd.* | 32,000 | 18,844 | ||||||
China Medical System Holdings Ltd. | 72,000 | 63,783 | ||||||
China Resources Pharmaceutical Group Ltd.(b) | 85,500 | 121,623 | ||||||
China Traditional Chinese Medicine Holdings Co. Ltd. | 114,000 | 64,662 | ||||||
Chong Kun Dang Pharmaceutical Corp. | 269 | 23,488 | ||||||
Cipla Ltd. | 17,113 | 139,013 |
See Accompanying Notes to the Financial Statements.
164 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Consun Pharmaceutical Group Ltd. | 16,000 | $ | 11,217 | |||||
CSPC Pharmaceutical Group Ltd. | 218,000 | 420,139 | ||||||
Daewoong Co. Ltd. | 1,791 | 33,194 | ||||||
Daewoong Pharmaceutical Co. Ltd. | 266 | 46,225 | ||||||
Dong-A Socio Holdings Co. Ltd. | 104 | 9,615 | ||||||
Dong-A ST Co. Ltd. | 299 | 26,108 | ||||||
DongKook Pharmaceutical Co. Ltd. | 450 | 22,189 | ||||||
Dr Reddy’s Laboratories Ltd. | 3,597 | 151,720 | ||||||
Genomma Lab Internacional SAB de CV, Class B* | 12,000 | 9,614 | ||||||
Glenmark Pharmaceuticals Ltd. | 8,180 | 75,080 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H | 6,000 | 31,088 | ||||||
Hanall Biopharma Co. Ltd.* | 1,501 | 41,953 | ||||||
Hanmi Pharm Co. Ltd. | 342 | 127,209 | ||||||
Hanmi Science Co. Ltd. | 1,343 | 86,456 | ||||||
Hua Han Health Industry Holdings Ltd.* (c) | 3,780,000 | 255,360 | ||||||
Hypera SA* | 18,500 | 131,504 | ||||||
Il Dong Pharmaceutical Co. Ltd. | 479 | 9,144 | ||||||
Ilyang Pharmaceutical Co. Ltd.* | 756 | 18,153 | ||||||
Ipca Laboratories Ltd. | 1,664 | 22,788 | ||||||
Jubilant Life Sciences Ltd. | 1,723 | 16,371 | ||||||
JW Holdings Corp. | 59,805 | 340,456 | ||||||
JW Pharmaceutical Corp. | 224 | 7,037 | ||||||
Kalbe Farma Tbk. PT | 1,122,700 | 121,724 | ||||||
Kolon Life Science, Inc.* | 291 | 10,438 | ||||||
Komipharm International Co. Ltd.* | 1,432 | 25,866 | ||||||
Livzon Pharmaceutical Group, Inc., Class H | 5,408 | 19,646 | ||||||
Lotus Pharmaceutical Co. Ltd.* | 5,000 | 15,210 | ||||||
Lupin Ltd. | 9,156 | 114,796 | ||||||
Luye Pharma Group Ltd.(a) (b) | 75,000 | 67,874 | ||||||
Mega Lifesciences PCL, NVDR | 23,000 | 25,936 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Mezzion Pharma Co. Ltd.* | 198 | $ | 20,340 | |||||
Natco Pharma Ltd. | 2,480 | 19,443 | ||||||
Oscotec, Inc.* | 808 | 18,641 | ||||||
Pfizer Ltd. | 341 | 15,409 | ||||||
Pharmally International Holding Co. Ltd. | 2,000 | 13,915 | ||||||
Piramal Enterprises Ltd. | 4,251 | 144,361 | ||||||
Richter Gedeon Nyrt | 5,341 | 105,629 | ||||||
Sam Chun Dang Pharm Co. Ltd. | 823 | 32,232 | ||||||
Samjin Pharmaceutical Co. Ltd. | 344 | 11,499 | ||||||
Sanofi India Ltd. | 163 | 13,149 | ||||||
ScinoPharm Taiwan Ltd. | 22,000 | 18,048 | ||||||
Searle Co. Ltd. (The) | 5,980 | 7,847 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H | 20,000 | 68,703 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 436,000 | 117,261 | ||||||
Sino Biopharmaceutical Ltd. | 327,000 | 314,271 | ||||||
SSY Group Ltd. | 80,165 | 75,716 | ||||||
Sun Pharma Advanced Research Co. Ltd.* | 4,836 | 11,695 | ||||||
Sun Pharmaceutical Industries Ltd. | 48,069 | 316,285 | ||||||
Tong Ren Tang Technologies Co. Ltd., Class H(a) | 17,000 | 23,576 | ||||||
Torrent Pharmaceuticals Ltd. | 2,009 | 51,757 | ||||||
TTY Biopharm Co. Ltd. | 12,686 | 33,664 | ||||||
Wockhardt Ltd.* | 175 | 1,039 | ||||||
YiChang HEC ChangJiang Pharmaceutical Co. Ltd., Class H(b) | 800 | 3,962 | ||||||
Yuhan Corp. | 476 | 100,037 | ||||||
Yungjin Pharmaceutical Co. Ltd.* | 5,316 | 29,853 | ||||||
YungShin Global Holding Corp. | 11,000 | 14,987 | ||||||
4,893,045 | ||||||||
Professional Services – 0.0%(d) | ||||||||
51job, Inc., ADR* | 1,000 | 92,340 | ||||||
Benefit Systems SA* | 98 | 17,715 | ||||||
L&T Technology Services Ltd.(b) | 1,966 | 49,106 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 165 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Professional Services – (continued) | ||||||||
Quess Corp. Ltd.* (b) | 1,560 | $ | 15,676 | |||||
Sporton International, Inc. | 2,386 | 14,130 | ||||||
188,967 | ||||||||
Real Estate Management & Development – 6.2% | ||||||||
8990 Holdings, Inc. | 126,000 | 34,817 | ||||||
Agile Group Holdings Ltd.(a) | 148,000 | 223,734 | ||||||
Aldar Properties PJSC | 356,539 | 172,778 | ||||||
Aliansce Shopping Centers SA | 3,500 | 16,834 | ||||||
Amata Corp. PCL | 44,900 | 31,504 | ||||||
AP Thailand PCL, NVDR | 1,297,100 | 320,974 | ||||||
Ayala Land, Inc. | 261,600 | 245,725 | ||||||
Bangkok Land PCL, NVDR | 100 | 5 | ||||||
Barwa Real Estate Co. | 8,938 | 85,201 | ||||||
BR Malls Participacoes SA* | 43,600 | 135,757 | ||||||
BR Properties SA | 4,577 | 10,138 | ||||||
Bumi Serpong Damai Tbk. PT* | 499,200 | 50,270 | ||||||
C C Land Holdings Ltd. | 56,000 | 12,920 | ||||||
C&D International Investment Group Ltd. | 327,000 | 432,643 | ||||||
Cathay Real Estate Development Co. Ltd. | 33,100 | 26,940 | ||||||
Central China Real Estate Ltd. | 981,000 | 487,662 | ||||||
China Aoyuan Group Ltd. | 133,000 | 161,219 | ||||||
China Evergrande Group(a) | 301,000 | 964,916 | ||||||
China Jinmao Holdings Group Ltd. | 436,000 | 282,316 | ||||||
China Logistics Property Holdings Co. Ltd.* (b) | 59,000 | 22,335 | ||||||
China Merchants Land Ltd. | 1,744,000 | 304,545 | ||||||
China Oceanwide Holdings Ltd.* | 202,000 | 13,904 | ||||||
China Overseas Grand Oceans Group Ltd. | 1,962,000 | 1,045,346 | ||||||
China Overseas Land & Investment Ltd. | 372,000 | 1,391,669 | ||||||
China Overseas Property Holdings Ltd. | 70,000 | 33,102 | ||||||
China Resources Land Ltd. | 263,777 | 1,148,187 | ||||||
China SCE Group Holdings Ltd. | 2,817,000 | 1,328,536 | ||||||
China South City Holdings Ltd. | 6,104,000 | 925,862 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
China Vanke Co. Ltd., Class H | 130,800 | $ | 506,001 | |||||
China Vast Industrial Urban Development Co. Ltd.(b) | 545,000 | 234,800 | ||||||
Chong Hong Construction Co. Ltd. | 24,000 | 67,571 | ||||||
CIFI Holdings Group Co. Ltd. | 343,149 | 227,880 | ||||||
Ciputra Development Tbk. PT | 597,049 | 47,345 | ||||||
Corp. Inmobiliaria Vesta SAB de CV(a) | 773,900 | 1,216,001 | ||||||
Country Garden Holdings Co. Ltd. | 700,000 | 1,127,795 | ||||||
DAMAC Properties Dubai Co. PJSC | 104,520 | 35,284 | ||||||
DLF Ltd. | 19,408 | 48,203 | ||||||
Dongwon Development Co. Ltd. | 54,282 | 220,957 | ||||||
DoubleDragon Properties Corp.* | 42,720 | 20,658 | ||||||
Echo Investment SA | 249,065 | 251,466 | ||||||
Eco World International Bhd.* | 68,800 | 11,815 | ||||||
E-House China Enterprise Holdings Ltd.* (b) | 29,100 | 37,834 | ||||||
Emaar Development PJSC | 81,859 | 87,360 | ||||||
Emaar Malls PJSC | 96,296 | 45,616 | ||||||
Emaar Properties PJSC | 343,568 | 448,968 | ||||||
Fantasia Holdings Group Co. Ltd. | 1,962,000 | 372,623 | ||||||
Farglory Land Development Co. Ltd. | 21,000 | 25,926 | ||||||
Filinvest Land, Inc. | 14,388,000 | 425,186 | ||||||
Future Land Development Holdings Ltd. | 172,000 | 204,986 | ||||||
Gemdale Properties & Investment Corp. Ltd.(a) | 6,540,000 | 875,290 | ||||||
Globe Trade Centre SA | 30,503 | 70,200 | ||||||
Godrej Properties Ltd.* | 3,326 | 39,685 | ||||||
Greenland Hong Kong Holdings Ltd. | 1,090,000 | 447,370 | ||||||
Greentown China Holdings Ltd. | 49,000 | 44,344 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H | 106,400 | 211,297 | ||||||
Guorui Properties Ltd.(b) | 981,000 | 206,318 | ||||||
Hanson International Tbk. PT* | 2,409,275 | 16,738 | ||||||
Highwealth Construction Corp. | 81,000 | 129,622 |
See Accompanying Notes to the Financial Statements.
166 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Hongkong Land Holdings Ltd. | 54,500 | $ | 379,865 | |||||
Hopson Development Holdings Ltd. | 56,000 | 61,458 | ||||||
Huaku Development Co. Ltd. | 327,000 | 827,527 | ||||||
Hung Sheng Construction Ltd. | 763,000 | 556,799 | ||||||
Iguatemi Empresa de Shopping Centers SA | 4,800 | 46,392 | ||||||
IOI Properties Group Bhd. | 145,600 | 48,246 | ||||||
Jaya Real Property Tbk. PT | 5,123,000 | 213,908 | ||||||
Jiayuan International Group Ltd.(a) | 40,430 | 18,088 | ||||||
Joy City Property Ltd. | 480,000 | 68,524 | ||||||
Kaisa Group Holdings Ltd.* (a) | 3,052,000 | 1,295,429 | ||||||
Kindom Construction Corp. | 480,000 | 326,980 | ||||||
Korea Real Estate Investment & Trust Co. Ltd. | 234,023 | 521,876 | ||||||
KWG Group Holdings Ltd. | 109,000 | 127,542 | ||||||
LAMDA Development SA* | 50,467 | 385,163 | ||||||
Land & Houses PCL, NVDR | 155,700 | 54,623 | ||||||
LOG Commercial Properties e Participacoes SA* | 1,731 | 7,686 | ||||||
Logan Property Holdings Co. Ltd.(a) | 130,000 | 207,128 | ||||||
Longfor Group Holdings Ltd. | 143,000 | 526,767 | ||||||
LSR Group PJSC | 57,879 | 596,917 | ||||||
LVGEM China Real Estate Investment Co. Ltd. | 84,000 | 26,339 | ||||||
Mah Sing Group Bhd. | 1,700,400 | 394,820 | ||||||
MAS Real Estate, Inc. | 13,905 | 21,435 | ||||||
MBK PCL, NVDR | 29,800 | 19,602 | ||||||
Medinet Nasr Housing* | 20,044 | 7,388 | ||||||
Megaworld Corp. | 585,000 | 62,864 | ||||||
Midea Real Estate Holding Ltd.* (b) | 23,000 | 60,832 | ||||||
Mingfa Group International Co. Ltd.* (c) | 36,000 | 8,673 | ||||||
Multiplan Empreendimentos Imobiliarios SA* | 11,400 | 69,145 | ||||||
NEPI Rockcastle plc | 22,790 | 189,537 | ||||||
Oberoi Realty Ltd. | 4,021 | 29,328 | ||||||
Origin Property PCL | 78,900 | 19,524 | ||||||
Pakuwon Jati Tbk. PT | 534,400 | 26,814 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Palm Hills Developments SAE* | 1,797,083 | $ | 253,890 | |||||
Parque Arauco SA* | 36,297 | 99,864 | ||||||
Phoenix Mills Ltd. (The) | 1,462 | 12,616 | ||||||
Poly Property Group Co. Ltd. | 2,725,000 | 1,142,740 | ||||||
Powerlong Real Estate Holdings Ltd. | 2,180,000 | 1,058,684 | ||||||
Prestige Estates Projects Ltd. | 6,656 | 25,001 | ||||||
Prince Housing & Development Corp. | 93,000 | 33,557 | ||||||
Pruksa Holding PCL, NVDR | 62,400 | 36,746 | ||||||
Quality Houses PCL, NVDR | 5,984,100 | 554,830 | ||||||
Red Star Macalline Group Corp. Ltd., Class H(b) | 959,200 | 907,189 | ||||||
Redco Group(b) | 52,000 | 20,746 | ||||||
Redsun Properties Group Ltd.* | 1,308,000 | 453,484 | ||||||
Renhe Commercial Holdings Co. Ltd.* | 1,126,000 | 37,316 | ||||||
Road King Infrastructure Ltd. | 344,000 | 781,360 | ||||||
Robinsons Land Corp.* | 103,906 | 48,850 | ||||||
Ronshine China Holdings Ltd.* (b) | 54,500 | 75,025 | ||||||
Ruentex Development Co. Ltd. | 65,400 | 89,737 | ||||||
Sansiri PCL, NVDR | 8,000,600 | 358,367 | ||||||
Shanghai Industrial Urban Development Group Ltd. | 1,962,000 | 392,630 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B | 31,200 | 47,237 | ||||||
Shenzhen Investment Ltd. | 306,793 | 122,007 | ||||||
Shimao Property Holdings Ltd. | 109,000 | 332,054 | ||||||
Shining Building Business Co. Ltd.* | 13,650 | 4,484 | ||||||
Shui On Land Ltd. | 339,000 | 82,531 | ||||||
Sime Darby Property Bhd. | 73,800 | 19,813 | ||||||
Singha Estate PCL, NVDR | 77,400 | 7,710 | ||||||
Sino-Ocean Group Holding Ltd. | 330,267 | 148,181 | ||||||
Sinyi Realty, Inc. | 22,738 | 23,142 | ||||||
SK D&D Co. Ltd. | 258 | 6,515 | ||||||
Skyfame Realty Holdings Ltd. | 96,000 | 15,785 | ||||||
SM Prime Holdings, Inc. | 523,200 | 416,150 | ||||||
SOHO China Ltd.* | 104,000 | 37,648 | ||||||
SP Setia Bhd. Group | 52,000 | 28,550 | ||||||
Summarecon Agung Tbk. PT | 433,400 | 34,064 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 167 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Sunac China Holdings Ltd. | 226,000 | $ | 1,165,231 | |||||
Sunway Bhd. | 101,237 | 40,891 | ||||||
Supalai PCL, NVDR | 48,600 | 33,643 | ||||||
Talaat Moustafa Group* | 51,370 | 33,898 | ||||||
Tian An China Investment Co. Ltd. | 654,000 | 357,619 | ||||||
Times China Holdings Ltd. | 66,000 | 119,963 | ||||||
Tomson Group Ltd. | 1,420,000 | 544,803 | ||||||
UEM Sunrise Bhd. | 71,900 | 16,173 | ||||||
United Development Co. QSC | 4,850 | 17,981 | ||||||
UOA Development Bhd. | 17,600 | 9,621 | ||||||
Vista Land & Lifescapes, Inc. | 5,896,900 | 827,179 | ||||||
WHA Corp. PCL, NVDR | 394,090 | 54,068 | ||||||
Yuexiu Property Co. Ltd. | 654,000 | 151,717 | ||||||
Yuzhou Properties Co. Ltd. | 188,395 | 99,416 | ||||||
Zall Smart Commerce Group Ltd. | 211,000 | 82,298 | ||||||
Zhenro Properties Group Ltd.(b) | 132,000 | 91,024 | ||||||
Zhuguang Holdings Group Co. Ltd.* | 150,000 | 23,517 | ||||||
36,199,742 | ||||||||
Road & Rail – 0.2% | ||||||||
BTS Group Holdings PCL, NVDR | 220,640 | 81,552 | ||||||
CAR, Inc.* (a) | 25,000 | 20,235 | ||||||
Cia de Locacao das Americas* | 1,500 | 15,568 | ||||||
CJ Logistics Corp.* | 416 | 56,089 | ||||||
Container Corp. of India Ltd. | 11,990 | 85,020 | ||||||
Cosan Logistica SA* | 4,018 | 14,810 | ||||||
GMexico Transportes SAB de CV(b) | 21,300 | 25,977 | ||||||
Localiza Rent a Car SA* | 28,100 | 257,505 | ||||||
PKP Cargo SA* | 41,965 | 488,921 | ||||||
Rumo SA* | 54,500 | 249,715 | ||||||
1,295,392 | ||||||||
Semiconductors & Semiconductor Equipment – 4.0% | ||||||||
A-DATA Technology Co. Ltd. | 285,000 | 461,150 | ||||||
Ardentec Corp. | 582,720 | 596,844 | ||||||
ASE Technology Holding Co. Ltd. | 303,420 | 704,029 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
ASMedia Technology, Inc. | 1,104 | $ | 19,078 | |||||
ASPEED Technology, Inc. | 1,000 | 20,776 | ||||||
Chang Wah Technology Co. Ltd. | 21,000 | 188,926 | ||||||
Chipbond Technology Corp. | 26,000 | 58,898 | ||||||
ChipMOS Techinologies, Inc. | 677,000 | 589,343 | ||||||
Darwin Precisions Corp. | 11,000 | 6,870 | ||||||
DB HiTek Co. Ltd. | 55,263 | 756,930 | ||||||
Elan Microelectronics Corp. | 8,400 | 22,726 | ||||||
Elite Advanced Laser Corp. | 3,960 | 8,381 | ||||||
Elite Semiconductor Memory Technology, Inc. | 12,000 | 12,679 | ||||||
eMemory Technology, Inc. | 3,000 | 37,426 | ||||||
Eo Technics Co. Ltd. | 390 | 23,704 | ||||||
Epistar Corp. | 58,000 | 50,678 | ||||||
Everlight Electronics Co. Ltd. | 22,000 | 21,999 | ||||||
Faraday Technology Corp. | 6,000 | 9,883 | ||||||
Formosa Advanced Technologies Co. Ltd. | 218,000 | 248,681 | ||||||
Foxsemicon Integrated Technology, Inc. | 109,000 | 504,417 | ||||||
GCL-Poly Energy Holdings Ltd.* (a) | 17,113,000 | 1,221,516 | ||||||
GemVax & Kael Co. Ltd.* | 2,692 | 42,633 | ||||||
Global Unichip Corp. | 5,000 | 36,730 | ||||||
Globalwafers Co. Ltd. | 9,000 | 98,152 | ||||||
Greatek Electronics, Inc. | 26,000 | 35,970 | ||||||
Hanmi Semiconductor Co. Ltd. | 1,248 | 9,893 | ||||||
Holtek Semiconductor, Inc. | 1,000 | 2,395 | ||||||
Hua Hong Semiconductor Ltd.(b) | 20,000 | 47,263 | ||||||
Innox Advanced Materials Co. Ltd.* | 535 | 24,136 | ||||||
Jusung Engineering Co. Ltd. | 774 | 5,427 | ||||||
King Yuan Electronics Co. Ltd. | 109,000 | 100,883 | ||||||
Kinsus Interconnect Technology Corp. | 347,000 | 523,291 | ||||||
Koh Young Technology, Inc. | 416 | 34,401 | ||||||
LandMark Optoelectronics Corp. | 2,000 | 17,864 | ||||||
LEENO Industrial, Inc. | 416 | 20,370 | ||||||
Lextar Electronics Corp.* | 12,000 | 6,796 | ||||||
Machvision, Inc. | 1,000 | 13,640 |
See Accompanying Notes to the Financial Statements.
168 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Macronix International | 218,000 | $ | 168,962 | |||||
MediaTek, Inc. | 76,000 | 726,773 | ||||||
Nanya Technology Corp. | 109,000 | 230,692 | ||||||
Novatek Microelectronics Corp. | 24,000 | 156,500 | ||||||
On-Bright Electronics, Inc. | 2,000 | 11,585 | ||||||
Pan Jit International, Inc.* | 436,000 | 383,780 | ||||||
Parade Technologies Ltd. | 3,400 | 57,545 | ||||||
Phison Electronics Corp. | 6,000 | 56,406 | ||||||
Pixart Imaging, Inc. | 5,000 | 15,970 | ||||||
Powertech Technology, Inc. | 81,000 | 201,838 | ||||||
Radiant Opto-Electronics Corp. | 19,330 | 65,057 | ||||||
Realtek Semiconductor Corp. | 19,070 | 128,981 | ||||||
SDI Corp. | 7,000 | 15,834 | ||||||
Semiconductor Manufacturing International Corp.* (a) | 163,500 | 174,850 | ||||||
Seoul Semiconductor Co. Ltd. | 1,370 | 22,459 | ||||||
Sigurd Microelectronics Corp. | 478,000 | 476,438 | ||||||
Silergy Corp. | 3,000 | 49,125 | ||||||
Silicon Works Co. Ltd. | 416 | 17,379 | ||||||
Sino-American Silicon Products, Inc.* | 46,000 | 99,440 | ||||||
Sitronix Technology Corp. | 5,000 | 20,550 | ||||||
SK Hynix, Inc. | 57,770 | 3,906,887 | ||||||
Taiwan Semiconductor Co. Ltd. | 9,000 | 16,252 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 872,000 | 7,308,760 | ||||||
Tokai Carbon Korea Co. Ltd. | 86 | 4,565 | ||||||
Topco Scientific Co. Ltd. | 195,000 | 559,108 | ||||||
Toptec Co. Ltd. | 29,784 | 257,517 | ||||||
United Microelectronics Corp. | 545,000 | 237,217 | ||||||
United Renewable Energy Co. Ltd.* | 42,000 | 14,271 | ||||||
Vanguard International Semiconductor Corp. | 35,000 | 77,587 | ||||||
Visual Photonics Epitaxy Co. Ltd. | 6,000 | 16,388 | ||||||
Wafer Works Corp. | 16,798 | 21,228 | ||||||
Win Semiconductors Corp. | 17,961 | 120,317 | ||||||
Winbond Electronics Corp. | 271,000 | 140,758 | ||||||
WONIK IPS Co. Ltd. | 44,798 | 1,071,869 | ||||||
XinTec, Inc.* | 6,000 | 7,689 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Xinyi Solar Holdings Ltd. | 276,000 | $ | 157,254 | |||||
23,582,609 | ||||||||
Software – 0.1% | ||||||||
Ahnlab, Inc. | 190 | 10,052 | ||||||
Asseco Poland SA | 7,412 | 102,619 | ||||||
Douzone Bizon Co. Ltd. | 669 | 32,758 | ||||||
Kingdee International Software Group Co. Ltd.(a) | 76,000 | 92,997 | ||||||
Kingsoft Corp. Ltd. | 40,000 | 102,226 | ||||||
Linx SA | 3,300 | 26,874 | ||||||
Oracle Financial Services Software Ltd. | 883 | 44,685 | ||||||
Tata Elxsi Ltd. | 516 | 6,902 | ||||||
TOTVS SA | 3,500 | 39,472 | ||||||
458,585 | ||||||||
Specialty Retail – 0.9% | ||||||||
Ace Hardware Indonesia Tbk. PT | 517,600 | 59,933 | ||||||
Beauty Community PCL, NVDR | 114,400 | 24,905 | ||||||
Bermaz Auto Bhd. | 20,800 | 12,074 | ||||||
China Harmony New Energy Auto Holding Ltd. | 981,000 | 347,615 | ||||||
China Yongda Automobiles Services Holdings Ltd. | 1,717,500 | 1,663,778 | ||||||
China ZhengTong Auto Services Holdings Ltd.(a) | 1,526,000 | 844,169 | ||||||
Detsky Mir PJSC(b) | 382,045 | 523,217 | ||||||
Foschini Group Ltd. (The) | 11,990 | 154,522 | ||||||
GOME Retail Holdings Ltd.* (a) | 623,447 | 71,520 | ||||||
Grand Baoxin Auto Group Ltd. | 926,500 | 323,579 | ||||||
Home Product Center PCL, NVDR | 228,900 | 112,568 | ||||||
Hotai Motor Co. Ltd. | 17,000 | 256,917 | ||||||
Hotel Shilla Co. Ltd. | 1,558 | 153,379 | ||||||
Italtile Ltd. | 10,931 | 11,056 | ||||||
JUMBO SA | 5,559 | 100,926 | ||||||
LOTTE Himart Co. Ltd. | 936 | 38,100 | ||||||
M.Video PJSC* | 2,600 | 16,990 | ||||||
Mr Price Group Ltd. | 11,554 | 174,588 | ||||||
Padini Holdings Bhd. | 17,200 | 15,975 | ||||||
Petrobras Distribuidora SA | 15,000 | 89,993 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 169 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Pou Sheng International Holdings Ltd.(a) | 97,000 | $ | 22,750 | |||||
PTG Energy PCL, NVDR | 26,300 | 9,062 | ||||||
Seobu T&D* | 508 | 4,547 | ||||||
Shinsegae International, Inc. | 81 | 21,738 | ||||||
Siam Global House PCL, NVDR | 61,282 | 33,208 | ||||||
Super Group Ltd.* | 9,092 | 23,275 | ||||||
Truworths International Ltd. | 23,762 | 125,289 | ||||||
Via Varejo SA* | 17,100 | 17,748 | ||||||
Zhongsheng Group Holdings Ltd.(a) | 54,500 | 143,103 | ||||||
5,396,524 | ||||||||
Technology Hardware, Storage & Peripherals – 5.6% | ||||||||
Acer, Inc. | 154,858 | 104,989 | ||||||
Advantech Co. Ltd. | 16,220 | 131,226 | ||||||
Asustek Computer, Inc. | 70,000 | 534,611 | ||||||
Casetek Holdings Ltd. | 238,875 | 398,885 | ||||||
Catcher Technology Co. Ltd. | 77,000 | 609,252 | ||||||
Chicony Electronics Co. Ltd. | 23,992 | 59,085 | ||||||
China Goldjoy Group Ltd.(a) | 15,260,000 | 602,978 | ||||||
Clevo Co.* | 25,000 | 23,786 | ||||||
CMC Magnetics Corp.* | 44,000 | 10,024 | ||||||
Compal Electronics, Inc. | 436,000 | 281,486 | ||||||
Coolpad Group Ltd.* (c) | 326,000 | 29,918 | ||||||
Darfon Electronics Corp. | 264,000 | 406,666 | ||||||
Ennoconn Corp. | 74,868 | 659,011 | ||||||
Getac Technology Corp. | 16,000 | 24,051 | ||||||
Gigabyte Technology Co. Ltd. | 44,000 | 70,697 | ||||||
HTC Corp.* | 29,000 | 39,228 | ||||||
Inventec Corp. | 143,000 | 114,766 | ||||||
Legend Holdings Corp., Class H(a) (b) | 54,500 | 148,313 | ||||||
Lenovo Group Ltd. | 654,000 | 606,034 | ||||||
Lite-On Technology Corp. | 218,000 | 307,236 | ||||||
Meitu, Inc.* (b) | 82,500 | 30,285 | ||||||
Micro-Star International Co. Ltd. | 28,000 | 77,564 | ||||||
Mitac Holdings Corp. | 82,409 | 85,340 | ||||||
Pegatron Corp. | 218,000 | 411,294 | ||||||
Primax Electronics Ltd. | 593,000 | 1,212,828 | ||||||
Qisda Corp. | 136,000 | 86,483 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Quanta Computer, Inc. | 266,000 | $ | 509,602 | |||||
Ritek Corp.* | 32,590 | 10,863 | ||||||
Samsung Electronics Co. Ltd. | 537,379 | 21,092,177 | ||||||
Samsung Electronics Co. Ltd. (Preference) | 81,641 | 2,599,876 | ||||||
Sindoh Co. Ltd. | 16 | 688 | ||||||
Transcend Information, Inc. | 7,000 | 15,857 | ||||||
Wistron Corp. | 269,573 | 223,328 | ||||||
Xiaomi Corp., Class B* (a) (b) | 610,400 | 935,199 | ||||||
32,453,626 | ||||||||
Textiles, Apparel & Luxury Goods – 1.6% | ||||||||
Aditya Birla Fashion and Retail Ltd.* | 6,536 | 20,274 | ||||||
Alpargatas SA (Preference)* | 7,375 | 29,218 | ||||||
ANTA Sports Products Ltd. | 42,000 | 296,046 | ||||||
Arezzo Industria e Comercio SA | 1,600 | 20,657 | ||||||
Arvind Ltd. | 7,361 | 8,821 | ||||||
Bata India Ltd. | 2,024 | 42,311 | ||||||
Bosideng International Holdings Ltd. | 126,000 | 34,690 | ||||||
CCC SA | 1,067 | 57,808 | ||||||
China Dongxiang Group Co. Ltd. | 5,123,000 | 757,473 | ||||||
China Lilang Ltd. | 22,000 | 22,938 | ||||||
Cia Hering | 4,800 | 38,798 | ||||||
Citychamp Watch & Jewellery Group Ltd. | 1,962,000 | 435,144 | ||||||
Eclat Textile Co. Ltd. | 9,698 | 138,090 | ||||||
F&F Co. Ltd. | 11,990 | 834,471 | ||||||
Feng TAY Enterprise Co. Ltd. | 17,122 | 138,800 | ||||||
FF Group* (c) | 3,536 | 19,021 | ||||||
Fila Korea Ltd. | 2,527 | 178,252 | ||||||
Formosa Taffeta Co. Ltd. | 33,000 | 39,780 | ||||||
Fuguiniao Co. Ltd., Class H* (c) | 334,800 | 165,578 | ||||||
Grendene SA | 18,822 | 34,973 | ||||||
Guararapes Confeccoes SA* | 300 | 10,943 | ||||||
Handsome Co. Ltd. | 1,177 | 43,124 | ||||||
Hansae Co. Ltd. | 1,034 | 25,625 | ||||||
HengTen Networks Group Ltd.* (a) | 1,032,000 | 29,597 | ||||||
HS Industries Co. Ltd. | 51,775 | 472,032 |
See Accompanying Notes to the Financial Statements.
170 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Hwaseung Enterprise Co. Ltd. | 331 | $ | 3,840 | |||||
JNBY Design Ltd.(b) | 10,000 | 19,757 | ||||||
Lao Feng Xiang Co. Ltd., Class B | 294,300 | 1,016,512 | ||||||
LF Corp. | 27,141 | 578,531 | ||||||
Li Ning Co. Ltd.* | 77,000 | 139,957 | ||||||
LPP SA | 83 | 185,704 | ||||||
Makalot Industrial Co. Ltd. | 7,650 | 52,731 | ||||||
Nan Liu Enterprise Co. Ltd. | 2,000 | 10,679 | ||||||
Nishat Mills Ltd. | 258,800 | 221,986 | ||||||
Page Industries Ltd. | 218 | 72,376 | ||||||
Pou Chen Corp. | 239,000 | 290,426 | ||||||
Quang Viet Enterprise Co. Ltd. | 4,000 | 20,323 | ||||||
Rajesh Exports Ltd. | 6,498 | 63,024 | ||||||
Raymond Ltd. | 60 | 666 | ||||||
Roo Hsing Co. Ltd.* | 654,000 | 292,068 | ||||||
Ruentex Industries Ltd. | 37,800 | 90,277 | ||||||
Shenzhou International Group Holdings Ltd. | 33,600 | 450,975 | ||||||
Shinkong Textile Co. Ltd. | 327,000 | 447,626 | ||||||
Tainan Spinning Co. Ltd. | 48,555 | 18,934 | ||||||
Taiwan Paiho Ltd. | 11,000 | 26,912 | ||||||
Texhong Textile Group Ltd. | 346,500 | 469,043 | ||||||
Titan Co. Ltd. | 13,952 | 232,397 | ||||||
Welspun India Ltd. | 11,024 | 8,440 | ||||||
Xtep International Holdings Ltd. | 39,000 | 22,221 | ||||||
Youngone Corp. | 890 | 28,152 | ||||||
Youngone Holdings Co. Ltd. | 7,521 | 418,495 | ||||||
9,076,516 | ||||||||
Thrifts & Mortgage Finance – 0.5% | ||||||||
Dewan Housing Finance Corp. Ltd. | 265,306 | 515,517 | ||||||
GRUH Finance Ltd.* | 6,573 | 30,033 | ||||||
Housing Development Finance Corp. Ltd. | 80,115 | 2,297,984 | ||||||
Indiabulls Housing Finance Ltd. | 15,260 | 152,581 | ||||||
LIC Housing Finance Ltd. | 13,843 | 98,866 | ||||||
Malaysia Building Society Bhd. | 94,322 | 22,699 | ||||||
PNB Housing Finance Ltd.(b) | 860 | 8,756 | ||||||
Sangsangin Co. Ltd.* | 753 | 12,409 | ||||||
3,138,845 |
Investments | Shares | Value | ||||||
Tobacco – 0.2% | ||||||||
British American Tobacco Malaysia Bhd. | 5,900 | $ | 49,746 | |||||
Eastern Co. SAE | 83,603 | 88,318 | ||||||
Gudang Garam Tbk. PT | 23,000 | 136,345 | ||||||
ITC Ltd. | 134,615 | 583,236 | ||||||
KT&G Corp. | 5,886 | 513,951 | ||||||
1,371,596 | ||||||||
Trading Companies & Distributors – 0.5% | ||||||||
Adani Enterprises Ltd. | 15,288 | 27,926 | ||||||
AKR Corporindo Tbk. PT | 71,700 | 22,391 | ||||||
Barloworld Ltd. | 9,025 | 80,107 | ||||||
BOC Aviation Ltd.(a) (b) | 21,800 | 187,562 | ||||||
Brighton-Best International Taiwan, Inc. | 16,000 | 17,993 | ||||||
China Aircraft Leasing Group Holdings Ltd.(b) | 410,500 | 470,913 | ||||||
CITIC Resources Holdings Ltd. | 3,270,000 | 308,435 | ||||||
Ferreycorp SAA | 1,367,950 | 1,012,378 | ||||||
HC Group, Inc.* | 50,000 | 25,493 | ||||||
LG International Corp. | 40,548 | 661,250 | ||||||
Posco International Corp. | 3,955 | 61,958 | ||||||
SK Networks Co. Ltd. | 12,371 | 62,059 | ||||||
2,938,465 | ||||||||
Transportation Infrastructure – 1.5% | ||||||||
Adani Ports & Special Economic Zone Ltd. | 34,880 | 196,982 | ||||||
Airports of Thailand PCL | 54,000 | 115,443 | ||||||
Airports of Thailand PCL, NVDR | 142,200 | 305,112 | ||||||
ALEATICA SAB de CV(a) | 26,500 | 28,767 | ||||||
Bangkok Aviation Fuel Services PCL, NVDR | 18,800 | 21,494 | ||||||
Bangkok Expressway & Metro PCL, NVDR | 414,200 | 141,418 | ||||||
Beijing Capital International Airport Co. Ltd., Class H | 74,000 | 65,837 | ||||||
CCR SA | 54,500 | 161,280 | ||||||
China Merchants Port Holdings Co. Ltd. | 140,123 | 282,911 | ||||||
COSCO SHIPPING Ports Ltd. | 69,384 | 69,159 | ||||||
DP World plc | 7,412 | 148,240 | ||||||
Grupo Aeroportuario del Centro Norte SAB de CV | 16,000 | 98,240 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 171 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B | 15,200 | $ | 154,022 | |||||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 8,720 | 143,134 | ||||||
International Container Terminal Services, Inc. | 42,650 | 103,530 | ||||||
Jasa Marga Persero Tbk. PT* | 88,423 | 37,851 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 62,000 | 88,194 | ||||||
Lingkaran Trans Kota Holdings Bhd. | 17,200 | 17,889 | ||||||
Malaysia Airports Holdings Bhd. | 57,900 | 106,851 | ||||||
Novorossiysk Commercial Sea Port PJSC | 289,596 | 32,221 | ||||||
Promotora y Operadora de Infraestructura SAB de CV | 10,900 | 110,496 | ||||||
Promotora y Operadora de Infraestructura SAB de CV, Class L | 2,300 | 15,052 | ||||||
Qingdao Port International Co. Ltd., Class H* (b) | 1,526,000 | 1,060,074 | ||||||
Shenzhen Expressway Co. Ltd., Class H | 976,000 | 1,188,059 | ||||||
Shenzhen International Holdings Ltd. | 54,500 | 117,539 | ||||||
Sociedad Matriz SAAM SA | 6,523,432 | 623,281 | ||||||
Taiwan High Speed Rail Corp. | 109,000 | 132,630 | ||||||
TAV Havalimanlari Holding A/S | 19,402 | 82,230 | ||||||
Tianjin Port Development Holdings Ltd.* | 2,180,000 | 252,862 | ||||||
Westports Holdings Bhd. | 61,600 | 56,616 | ||||||
Yuexiu Transport Infrastructure Ltd.(a) | 938,000 | 763,992 | ||||||
Zhejiang Expressway Co. Ltd., Class H | 2,014,000 | 2,158,939 | ||||||
8,880,345 | ||||||||
Water Utilities – 0.5% | ||||||||
Aguas Andinas SA, Class A | 150,093 | 86,121 | ||||||
Beijing Enterprises Water Group Ltd.* | 534,000 | 331,478 |
Investments | Shares | Value | ||||||
Water Utilities – (continued) | ||||||||
China Everbright Water Ltd. | 42,900 | $ | 13,867 | |||||
China Water Affairs Group Ltd. | 28,000 | 28,802 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 32,700 | 389,059 | ||||||
Cia de Saneamento de Minas Gerais-COPASA | 5,400 | 94,322 | ||||||
Cia de Saneamento do Parana (Preference) | 479,600 | 1,728,857 | ||||||
Guangdong Investment Ltd. | 142,000 | 266,067 | ||||||
Inversiones Aguas Metropolitanas SA | 11,208 | 17,231 | ||||||
Manila Water Co., Inc. | 33,800 | 14,658 | ||||||
TTW PCL, NVDR | 68,000 | 26,412 | ||||||
2,996,874 | ||||||||
Wireless Telecommunication Services – 1.9% | ||||||||
Advanced Info Service PCL, NVDR | 47,500 | 282,694 | ||||||
America Movil SAB de CV, Series L(a) | 1,079,100 | 800,976 | ||||||
Axiata Group Bhd. | 141,700 | 136,062 | ||||||
Bharti Airtel Ltd. | 129,383 | 595,818 | ||||||
China Mobile Ltd. | 548,117 | 5,222,391 | ||||||
DiGi.Com Bhd. | 87,200 | 97,018 | ||||||
Empresa Nacional de Telecomunicaciones SA | 5,699 | 59,472 | ||||||
Far EasTone Telecommunications Co. Ltd. | 81,000 | 198,693 | ||||||
Global Telecom Holding SAE* | 170,720 | 44,467 | ||||||
Globe Telecom, Inc. | 1,560 | 53,285 | ||||||
Indosat Tbk. PT | 1,580,500 | 289,481 | ||||||
Maxis Bhd. | 76,300 | 98,916 | ||||||
Mobile TeleSystems PJSC | 93,849 | 370,440 | ||||||
MTN Group Ltd. | 79,243 | 571,373 | ||||||
PLAY Communications SA(b) | 10,800 | 66,468 | ||||||
PLDT, Inc. | 3,600 | 84,970 | ||||||
Sarana Menara Nusantara Tbk. PT | 963,500 | 52,401 | ||||||
Sistema PJSFC | 274,100 | 37,441 | ||||||
SK Telecom Co. Ltd. | 3,924 | 831,392 | ||||||
Taiwan Mobile Co. Ltd. | 79,000 | 288,890 | ||||||
TIM Participacoes SA* | 32,700 | 96,768 | ||||||
Turkcell Iletisim Hizmetleri A/S | 106,275 | 222,537 | ||||||
Vodacom Group Ltd. | 30,193 | 242,871 |
See Accompanying Notes to the Financial Statements.
172 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Wireless Telecommunication Services – (continued) | ||||||||
Vodafone Idea Ltd.* | 526,713 | $ | 116,999 | |||||
Vodafone Qatar QSC | 20,384 | 43,217 | ||||||
XL Axiata Tbk. PT* | 149,675 | 30,670 | ||||||
10,935,710 | ||||||||
Total Common Stocks (Cost $510,572,404) | 577,104,064 | |||||||
Number of Rights | ||||||||
RIGHTS – 0.0%(d) | ||||||||
Biotechnology – 0.0%(d) | ||||||||
OBI Pharma, Inc., expiring 6/10/2019, price 135.00 TWD* (c) | 584 | 387 | ||||||
Capital Markets – 0.0% | ||||||||
Haitong Securities Co. Ltd., expiring 12/31/2019* ‡ (c) | 10,900 | — | ||||||
Diversified Telecommunication Services – 0.0%(d) | ||||||||
Bharti Airtel Services Ltd., expiring 5/17/2019, price 220.00 INR* (c) | 36,690 | 52,909 | ||||||
Electric Utilities – 0.0% | ||||||||
RusHydro PJSC, expiring 6/28/2019, price 1.00 RUB* ‡ (c) | 565,935 | — | ||||||
Electrical Equipment – 0.0%(d) | ||||||||
Doosan Heavy Industries & Construction Co. Ltd., expiring 5/9/2019, price 5,550.00 KRW* (c) | 3,772 | 5,150 | ||||||
Independent Power and Renewable Electricity Producers – 0.0%(d) | ||||||||
Hub Power Co. Ltd. (The), expiring 6/4/2019, price 50.00 PKR* (c) | 3,775 | 639 |
Investments | Number of Rights | Value | ||||||
Machinery – 0.0% | ||||||||
China International Marine Containers Group Co. Ltd., expiring 12/31/2019* ‡ (c) | 363 | $ | — | |||||
Total Rights (Cost $—) |
| 59,085 | ||||||
Principal Amount | ||||||||
CORPORATE BONDS – 0.0%(d) | ||||||||
Independent Power and Renewable Electricity Producers – 0.0%(d) | ||||||||
NTPC Ltd. | INR49,126 | 9,170 | ||||||
Number of Warrants | ||||||||
WARRANTS – 0.0% | ||||||||
Hotels, Restaurants & Leisure – 0.0% | ||||||||
Minor International PCL, | 6,655 | — | ||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(e) – 0.6% | ||||||||
REPURCHASE AGREEMENTS – 0.6% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $3,328,076, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $3,394,647 | $ | 3,327,822 | 3,327,822 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 173 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Societe Generale, 2.53%, dated 4/30/2019, due 5/1/2019, repurchase price $250,018, collateralized by various U.S. Treasury Securities, ranging from 0.38% – 2.88%, maturing 2/15/2020 – 8/15/2026; Common Stocks; total market value $278,765 | $ | 250,000 | $ | 250,000 | ||||
3,577,822 | ||||||||
Total Securities Lending Reinvestments (Cost $3,577,822) |
| 3,577,822 | ||||||
Total Investments – 99.4% (Cost $514,150,226) |
| 580,750,141 | ||||||
Other Assets Less Liabilities – 0.6% |
| 3,511,185 | ||||||
NET ASSETS – 100.0% |
| $ | 584,261,326 |
* | Non-income producing security. |
^ | Security subject to restrictions on resale. |
‡ | Value determined using significant unobservable inputs. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $23,130,022, collateralized in the form of cash with a value of $3,577,822 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $5,553,536 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 9, 2019 – November 15, 2048 and $15,653,001 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from July 15, 2019 – September 20, 2117; a total value of $24,784,359. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities |
offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Security fair valued as of April 30, 2019 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2019 amounted to $1,412,222, which represents approximately 0.24% 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 April 30, 2019. The total value of securities purchased was $3,577,822. |
Percentages shown are based on Net Assets.
Abbreviations
ADR – American Depositary Receipt
GDR – Global Depositary Receipt
INR – Indian Rupee
KRW – Korean Won
NVDR –Non-Voting Depositary Receipt
OJSC – Open Joint Stock Company
PJSC – Public Joint Stock Company
PKR – Pakistani Rupee
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.
RUB – Russian Ruble
SCA – Limited partnership with share capital
THB – Thai Baht
TWD – Taiwan Dollar
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 98,150,347 | ||
Aggregate gross unrealized depreciation | (37,845,669 | ) | ||
Net unrealized appreciation | $ | 60,304,678 | ||
Federal income tax cost | $ | 520,681,609 |
Futures Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI Emerging MarketsE-Mini Index | 130 | 06/21/2019 | USD | $ | 7,021,300 | $ | 205,303 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
See Accompanying Notes to the Financial Statements.
174 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Forward Foreign Currency Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2019:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 385,152 | BNP Paribas SA | BRL* | 1,481,938 | 06/19/2019 | $ | 11,440 | |||||||||||||||
USD | 173,325 | Goldman Sachs & Co. | HKD | 1,357,384 | 06/19/2019 | 183 | ||||||||||||||||
USD | 907,815 | Morgan Stanley | KRW* | 1,022,697,890 | 06/19/2019 | 30,760 | ||||||||||||||||
USD | 108,539 | Goldman Sachs & Co. | TWD* | 3,342,878 | 06/19/2019 | 11 | ||||||||||||||||
Total unrealized appreciation |
| $ | 42,394 | |||||||||||||||||||
BRL* | 815,839 | Citibank NA | USD | 215,000 | 06/19/2019 | $ | (9,264 | ) | ||||||||||||||
HKD | 782,962 | Credit Suisse International | USD | 100,000 | 06/19/2019 | (129 | ) | |||||||||||||||
USD | 196,204 | Goldman Sachs & Co. | INR* | 13,841,415 | 06/19/2019 | (1,571 | ) | |||||||||||||||
USD | 24,457 | Goldman Sachs & Co. | RUB* | 1,628,891 | 06/19/2019 | (587 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (11,551 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 30,843 |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
BRL – Brazilian Real
HKD – Hong Kong Dollar
INR – Indian Rupee
KRW – Korean Won
RUB – Russian Ruble
TWD – Taiwan Dollar
USD – US Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 175 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
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, 2019:
Brazil | 5.9 | % | ||
Chile | 1.1 | |||
China | 33.6 | |||
Colombia | 0.5 | |||
Czech Republic | 0.1 | |||
Egypt | 0.4 | |||
Greece | 0.5 | |||
Hungary | 0.4 | |||
India | 6.1 | |||
Indonesia | 1.9 | |||
Malaysia | 1.6 | |||
Mexico | 2.1 | |||
Pakistan | 0.4 | |||
Peru | 0.4 | |||
Philippines | 1.5 | |||
Poland | 1.3 | |||
Qatar | 0.7 | |||
Russia | 3.0 | |||
South Africa | 4.8 | |||
South Korea | 16.0 | |||
Taiwan | 12.9 | |||
Thailand | 1.9 | |||
Turkey | 0.9 | |||
United Arab Emirates | 0.8 | |||
Other1 | 1.2 | |||
100.0 | % |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
176 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Currency Hedged Morningstar DMex-US Factor Tilt Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS – 99.8% | ||||||||
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund(a) | 134,688 | $ | 8,399,144 | |||||
Total Investments – 99.8% (Cost $8,738,297) |
| 8,399,144 | ||||||
Other Assets Less Liabilities – 0.2% |
| 19,712 | ||||||
NET ASSETS – 100.0% |
| $ | 8,418,856 |
(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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 28,383 | ||
Aggregate gross unrealized depreciation | (373,108 | ) | ||
Net unrealized depreciation | $ | (344,725 | ) | |
Federal income tax cost | $ | 8,762,834 |
The FlexShares® Currency Hedged Morningstar DMex-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 ended April 30, 2019, was as follows:
Security | Value October 31, 2018 | Purchases at Cost | Sales Proceeds | Shares April 30, 2019 | Value April 30, 2019 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Loss | ||||||||||||||||||||||||
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund | $ | 7,846,364 | $ | 958,605 | $ | 782,042 | 134,688 | $ | 8,399,144 | $ | 404,538 | $ | 76,672 | $ | (28,321 | ) |
Forward Foreign Currency Contracts
FlexShares® Currency Hedged Morningstar DMex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2019:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 435,046 | Morgan Stanley | AUD | 608,000 | 05/21/2019 | $ | 6,896 | |||||||||||||||
USD | 744,646 | Morgan Stanley | CAD | 995,000 | 05/21/2019 | 4,600 | ||||||||||||||||
USD | 420,401 | Morgan Stanley | CHF | 425,000 | 05/21/2019 | 2,530 | ||||||||||||||||
USD | 102,497 | Morgan Stanley | DKK | 679,000 | 05/21/2019 | 382 | ||||||||||||||||
USD | 2,211,051 | Morgan Stanley | EUR | 1,962,000 | 05/21/2019 | 8,519 | ||||||||||||||||
USD | 269,706 | Morgan Stanley | HKD | 2,115,000 | 05/21/2019 | 38 | ||||||||||||||||
USD | 74,980 | Morgan Stanley | ILS | 269,000 | 05/21/2019 | 179 | ||||||||||||||||
USD | 100,750 | Morgan Stanley | NOK | 857,000 | 05/21/2019 | 1,566 | ||||||||||||||||
USD | 26,721 | Morgan Stanley | NZD | 40,000 | 05/21/2019 | 35 | ||||||||||||||||
USD | 235,815 | Morgan Stanley | SEK | 2,189,000 | 05/21/2019 | 5,190 | ||||||||||||||||
USD | 100,346 | Morgan Stanley | SGD | 136,000 | 05/21/2019 | 403 | ||||||||||||||||
Total unrealized appreciation |
| $ | 30,338 | |||||||||||||||||||
USD | 1,412,180 | Morgan Stanley | GBP | 1,084,000 | 05/21/2019 | $ | (2,481 | ) | ||||||||||||||
USD | 2,273,002 | Morgan Stanley | JPY | 253,729,000 | 05/21/2019 | (8,892 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (11,373 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 18,965 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 177 |
FlexShares® Currency Hedged Morningstar DMex-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.
178 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS – 98.4% | ||||||||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund(a) | 107,376 | $ | 5,789,714 | |||||
Total Investments – 98.4% (Cost $5,851,436) |
| 5,789,714 | ||||||
Other Assets Less Liabilities – 1.6% |
| 95,458 | ||||||
NET ASSETS – 100.0% | $ | 5,885,172 |
(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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 18,771 | ||
Aggregate gross unrealized depreciation | (98,937 | ) | ||
Net unrealized depreciation | $ | (80,166 | ) | |
Federal income tax cost | $ | 5,913,584 |
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 ended April 30, 2019, was as follows:
Security | Value October 31, 2018 | Purchases at Cost | Sales Proceeds | Shares April 30, 2019 | Value April 30, 2019 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Loss | ||||||||||||||||||||||||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | $ | 4,467,575 | $ | 689,882 | $ | 57,324 | 107,376 | $ | 5,789,714 | $ | 700,680 | $ | 24,041 | $ | (11,099 | ) |
Futures Contracts
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund had the following open futures contract as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI Emerging MarketsE-Mini Index | 1 | 06/21/2019 | USD | $ | 54,010 | $ | 2,130 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Forward Foreign Currency Contracts
FlexShares® | Currency Hedged Morningstar EM Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2019: |
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 342,049 | Morgan Stanley | BRL* | 1,350,000 | 05/22/2019 | $ | 860 | |||||||||||||||
USD | 66,175 | Morgan Stanley | CLP* | 43,820,000 | 05/22/2019 | 1,710 | ||||||||||||||||
USD | 33,811 | Morgan Stanley | EUR | 30,000 | 05/22/2019 | 130 | ||||||||||||||||
USD | 1,786,602 | Morgan Stanley | HKD | 14,010,000 | 05/22/2019 | 258 | ||||||||||||||||
USD | 112,275 | Morgan Stanley | IDR* | 1,585,310,000 | 05/22/2019 | 1,294 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 179 |
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund (cont.)
Forward Foreign Currency Contracts (cont.)
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 984,394 | Morgan Stanley | KRW* | 1,118,610,000 | 05/22/2019 | $ | 26,105 | |||||||||||||||
USD | 124,909 | Morgan Stanley | MXN | 2,360,000 | 05/22/2019 | 1,260 | ||||||||||||||||
USD | 86,210 | Morgan Stanley | PHP* | 4,470,000 | 05/22/2019 | 577 | ||||||||||||||||
USD | 81,500 | Morgan Stanley | PLN | 310,000 | 05/22/2019 | 471 | ||||||||||||||||
USD | 173,944 | Morgan Stanley | RUB* | 11,180,000 | 05/22/2019 | 1,335 | ||||||||||||||||
USD | 110,640 | Morgan Stanley | THB | 3,520,000 | 05/22/2019 | 331 | ||||||||||||||||
USD | 57,321 | Morgan Stanley | TRY | 340,000 | 05/22/2019 | 1,094 | ||||||||||||||||
USD | 772,628 | Morgan Stanley | TWD* | 23,790,000 | 05/22/2019 | 1,721 | ||||||||||||||||
USD | 290,642 | Morgan Stanley | ZAR | 4,100,000 | 05/22/2019 | 5,349 | ||||||||||||||||
Total unrealized appreciation |
| $ | 42,495 | |||||||||||||||||||
USD | 371,316 | Morgan Stanley | INR* | 25,900,000 | 05/22/2019 | $ | (71 | ) | ||||||||||||||
USD | 93,436 | Morgan Stanley | MYR* | 390,000 | 05/24/2019 | (850 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (921 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 41,574 |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
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.
180 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® US Quality Large Cap Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.4% | ||||||||
Aerospace & Defense – 2.4% | ||||||||
Boeing Co. (The) | 4,128 | $ | 1,559,104 | |||||
Textron, Inc. | 7,968 | 422,304 | ||||||
1,981,408 | ||||||||
Air Freight & Logistics – 1.1% | ||||||||
CH Robinson Worldwide, Inc. | 4,800 | 388,800 | ||||||
Expeditors International of Washington, Inc. | 6,144 | 487,956 | ||||||
876,756 | ||||||||
Airlines – 1.0% | ||||||||
Southwest Airlines Co. | 7,296 | 395,662 | ||||||
United Continental Holdings, Inc.* | 4,800 | 426,528 | ||||||
822,190 | ||||||||
Banks – 3.9% | ||||||||
Bank of America Corp. | 16,608 | 507,873 | ||||||
Citigroup, Inc. | 23,904 | 1,690,013 | ||||||
Citizens Financial Group, Inc. | 11,520 | 417,024 | ||||||
Fifth Third Bancorp | 16,992 | 489,709 | ||||||
JPMorgan Chase & Co. | 1,344 | 155,971 | ||||||
3,260,590 | ||||||||
Beverages – 0.5% | ||||||||
Molson Coors Brewing Co., Class B | 6,240 | 400,546 | ||||||
Biotechnology – 2.7% | ||||||||
AbbVie, Inc. | 1,728 | 137,186 | ||||||
Amgen, Inc. | 7,488 | 1,342,748 | ||||||
Biogen, Inc.* | 3,264 | 748,239 | ||||||
2,228,173 | ||||||||
Capital Markets – 2.7% | ||||||||
Goldman Sachs Group, Inc. (The) | 5,952 | 1,225,636 | ||||||
Morgan Stanley | 21,216 | 1,023,672 | ||||||
2,249,308 | ||||||||
Chemicals – 1.8% | ||||||||
Celanese Corp.(a) | 1,920 | 207,149 | ||||||
CF Industries Holdings, Inc. | 8,928 | 399,796 | ||||||
LyondellBasell Industries NV, Class A | 5,664 | 499,735 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Mosaic Co. (The) | 13,632 | $ | 355,931 | |||||
1,462,611 | ||||||||
Communications Equipment – 2.4% | ||||||||
Cisco Systems, Inc. | 35,904 | 2,008,829 | ||||||
Construction & Engineering – 0.6% | ||||||||
Jacobs Engineering Group, Inc.(a) | 6,240 | 486,346 | ||||||
Consumer Finance – 2.7% | ||||||||
Ally Financial, Inc. | 16,512 | 490,571 | ||||||
Capital One Financial Corp. | 7,488 | 695,111 | ||||||
Discover Financial Services | 6,336 | 516,321 | ||||||
Synchrony Financial | 15,072 | 522,546 | ||||||
2,224,549 | ||||||||
Diversified Financial Services – 0.4% | ||||||||
Berkshire Hathaway, Inc., Class B* | 1,440 | 312,062 | ||||||
Diversified Telecommunication Services – 2.5% | ||||||||
CenturyLink, Inc. | 32,832 | 374,942 | ||||||
Verizon Communications, Inc. | 29,664 | 1,696,484 | ||||||
2,071,426 | ||||||||
Electric Utilities – 1.5% | ||||||||
Exelon Corp. | 15,072 | 767,918 | ||||||
Pinnacle West Capital Corp. | 4,800 | 457,296 | ||||||
1,225,214 | ||||||||
Electrical Equipment – 0.7% | ||||||||
Eaton Corp. plc | 7,008 | 580,403 | ||||||
Electronic Equipment, Instruments & Components – 0.6% | ||||||||
CDW Corp. | 4,800 | 506,880 | ||||||
Entertainment – 0.5% | ||||||||
Viacom, Inc., Class B | 15,072 | 435,732 | ||||||
Equity Real Estate Investment Trusts (REITs) – 3.0% | ||||||||
Duke Realty Corp. | 15,072 | 469,041 | ||||||
Equity Residential | 2,208 | 168,735 | ||||||
HCP, Inc. | 14,208 | 423,114 | ||||||
Host Hotels & Resorts, Inc. | 23,808 | 458,066 | ||||||
Public Storage | 2,592 | 573,298 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 181 |
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
SL Green Realty Corp. | 4,608 | $ | 407,071 | |||||
2,499,325 | ||||||||
Food & Staples Retailing – 2.9% | ||||||||
Kroger Co. (The) | 16,320 | 420,730 | ||||||
Walgreens Boots Alliance, Inc. | 13,536 | 725,123 | ||||||
Walmart, Inc. | 12,288 | 1,263,698 | ||||||
2,409,551 | ||||||||
Food Products – 0.6% | ||||||||
Archer-Daniels-Midland Co. | 11,424 | 509,510 | ||||||
Gas Utilities – 0.0%(b) | ||||||||
UGI Corp. | 576 | 31,398 | ||||||
Health Care Equipment & Supplies – 1.5% | ||||||||
Danaher Corp. | 5,184 | 686,569 | ||||||
Medtronic plc | 5,952 | 528,597 | ||||||
1,215,166 | ||||||||
Health Care Providers & Services – 3.6% | ||||||||
Anthem, Inc. | 4,032 | 1,060,537 | ||||||
Cardinal Health, Inc. | 8,256 | 402,150 | ||||||
Humana, Inc. | 2,208 | 563,945 | ||||||
McKesson Corp. | 3,648 | 435,024 | ||||||
UnitedHealth Group, Inc. | 2,016 | 469,869 | ||||||
2,931,525 | ||||||||
Hotels, Restaurants & Leisure – 1.3% | ||||||||
Hilton Worldwide Holdings, Inc. | 5,856 | 509,413 | ||||||
Yum! Brands, Inc. | 5,472 | 571,222 | ||||||
1,080,635 | ||||||||
Independent Power and Renewable Electricity Producers – 1.1% | ||||||||
AES Corp. | 26,688 | 456,899 | ||||||
NRG Energy, Inc. | 9,984 | 411,041 | ||||||
867,940 | ||||||||
Insurance – 3.2% | ||||||||
Aflac, Inc. | 12,672 | 638,415 | ||||||
Allstate Corp. (The) | 5,664 | 561,076 | ||||||
Athene Holding Ltd., Class A* | 576 | 26,012 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Loews Corp. | 960 | $ | 49,239 | |||||
MetLife, Inc. | 13,632 | 628,844 | ||||||
Progressive Corp. (The) | 9,504 | 742,738 | ||||||
Torchmark Corp. | 96 | 8,415 | ||||||
2,654,739 | ||||||||
Interactive Media & Services – 2.7% | ||||||||
Alphabet, Inc., Class A* | 192 | 230,200 | ||||||
Alphabet, Inc., Class C* | 384 | 456,377 | ||||||
Facebook, Inc., Class A* | 3,360 | 649,824 | ||||||
IAC/InterActiveCorp* | 2,112 | 474,862 | ||||||
Match Group, Inc.(a) | 7,488 | 452,275 | ||||||
2,263,538 | ||||||||
Internet & Direct Marketing Retail – 2.2% | ||||||||
Amazon.com, Inc.* | 731 | 1,408,286 | ||||||
eBay, Inc. | 10,560 | 409,200 | ||||||
1,817,486 | ||||||||
IT Services – 5.8% | ||||||||
Cognizant Technology Solutions Corp., Class A | 9,408 | 686,408 | ||||||
DXC Technology Co. | 7,296 | 479,639 | ||||||
Fidelity National Information Services, Inc.(a) | 5,280 | 612,110 | ||||||
International Business Machines Corp. | 10,176 | 1,427,387 | ||||||
Mastercard, Inc., Class A | 4,032 | 1,025,096 | ||||||
VeriSign, Inc.* | 2,784 | 549,701 | ||||||
4,780,341 | ||||||||
Life Sciences Tools & Services – 0.5% | ||||||||
Waters Corp.* | 1,920 | 409,997 | ||||||
Machinery – 1.8% | ||||||||
Cummins, Inc. | 3,072 | 510,843 | ||||||
Dover Corp. | 4,992 | 489,416 | ||||||
PACCAR, Inc. | 7,296 | 522,904 | ||||||
1,523,163 | ||||||||
Media – 1.8% | ||||||||
CBS Corp.(Non-Voting), Class B | 7,968 | 408,519 | ||||||
Discovery, Inc., Class C* | 192 | 5,522 | ||||||
Fox Corp., Class A* | 4,286 | 167,111 |
See Accompanying Notes to the Financial Statements.
182 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Interpublic Group of Cos., Inc. (The) | 18,336 | $ | 421,728 | |||||
Omnicom Group, Inc.(a) | 5,664 | 453,290 | ||||||
1,456,170 | ||||||||
Metals & Mining – 1.0% | ||||||||
Nucor Corp. | 7,776 | 443,776 | ||||||
Steel Dynamics, Inc. | 11,520 | 364,954 | ||||||
808,730 | ||||||||
Multiline Retail – 1.5% | ||||||||
Kohl’s Corp. | 6,624 | 470,967 | ||||||
Macy’s, Inc. | 17,184 | 404,511 | ||||||
Nordstrom, Inc. | 8,160 | 334,723 | ||||||
1,210,201 | ||||||||
Multi-Utilities – 1.1% | ||||||||
CenterPoint Energy, Inc. | 14,208 | 440,448 | ||||||
DTE Energy Co. | 4,032 | 506,863 | ||||||
947,311 | ||||||||
Oil, Gas & Consumable Fuels – 6.4% | ||||||||
Chevron Corp. | 14,784 | 1,774,967 | ||||||
ConocoPhillips | 17,760 | 1,121,011 | ||||||
Exxon Mobil Corp. | 4,320 | 346,810 | ||||||
HollyFrontier Corp. | 7,488 | 357,402 | ||||||
Marathon Petroleum Corp. | 6,912 | 420,733 | ||||||
Phillips 66 | 7,296 | 687,794 | ||||||
Valero Energy Corp. | 6,624 | 600,532 | ||||||
5,309,249 | ||||||||
Personal Products – 0.5% | ||||||||
Herbalife Nutrition Ltd.* | 7,104 | 375,446 | ||||||
Pharmaceuticals – 3.7% | ||||||||
Allergan plc | 5,376 | 790,272 | ||||||
Johnson & Johnson | 13,536 | 1,911,283 | ||||||
Mylan NV* | 14,400 | 388,656 | ||||||
3,090,211 | ||||||||
Professional Services – 0.5% | ||||||||
Robert Half International, Inc. | 6,144 | 381,481 |
Investments | Shares | Value | ||||||
Road & Rail – 0.6% | ||||||||
Norfolk Southern Corp. | 2,592 | $ | 528,820 | |||||
Semiconductors & Semiconductor Equipment – 5.8% | ||||||||
Broadcom, Inc. | 4,896 | 1,558,887 | ||||||
Intel Corp. | 34,656 | 1,768,842 | ||||||
Lam Research Corp. | 2,784 | 577,485 | ||||||
Micron Technology, Inc.* | 18,336 | 771,212 | ||||||
NXP Semiconductors NV | 1,440 | 152,093 | ||||||
4,828,519 | ||||||||
Software – 5.9% | ||||||||
Citrix Systems, Inc.(a) | 4,032 | 407,071 | ||||||
Intuit, Inc. | 3,936 | 988,172 | ||||||
Microsoft Corp. | 14,400 | 1,880,640 | ||||||
Oracle Corp. | 28,992 | 1,604,127 | ||||||
4,880,010 | ||||||||
Specialty Retail – 4.2% | ||||||||
Advance Auto Parts, Inc. | 288 | 47,900 | ||||||
AutoZone, Inc.* | 480 | 493,589 | ||||||
Best Buy Co., Inc. | 7,488 | 557,182 | ||||||
Gap, Inc. (The) | 13,824 | 360,530 | ||||||
Home Depot, Inc. (The) | 9,024 | 1,838,189 | ||||||
O’Reilly Automotive, Inc.* | 384 | 145,371 | ||||||
3,442,761 | ||||||||
Technology Hardware, Storage & Peripherals – 3.7% | ||||||||
Apple, Inc. | 9,792 | 1,964,962 | ||||||
Hewlett Packard Enterprise Co. | 30,720 | 485,683 | ||||||
HP, Inc. | 26,688 | 532,426 | ||||||
NetApp, Inc. | 1,152 | 83,923 | ||||||
3,066,994 | ||||||||
Textiles, Apparel & Luxury Goods – 1.2% | ||||||||
Ralph Lauren Corp. | 3,264 | 429,477 | ||||||
VF Corp. | 5,760 | 543,802 | ||||||
973,279 | ||||||||
Tobacco – 1.8% | ||||||||
Altria Group, Inc. | 26,784 | 1,455,175 | ||||||
Trading Companies & Distributors – 0.5% | ||||||||
WW Grainger, Inc. | 1,344 | 379,008 | ||||||
Total Common Stocks (Cost $75,110,140) |
| 81,260,702 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 183 |
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(c) – 0.8% | ||||||||
REPURCHASE AGREEMENTS – 0.8% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $653,554, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $666,626 (Cost $653,504) | $ | 653,504 | $ | 653,504 | ||||
Total Investments – 99.2% (Cost $75,763,644) |
| 81,914,206 | ||||||
Other Assets Less Liabilities – 0.8% |
| 681,350 | ||||||
NET ASSETS – 100.0% |
| $ | 82,595,556 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $1,627,638, collateralized in the form of cash with a value of |
$653,504 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $590,129 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.13%, and maturity dates ranging from May 9, 2019 – May 15, 2048 and $468,663 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.50%, and maturity dates ranging from October 7, 2019 – March 22, 2068; a total value of $1,712,296. |
(b) | Represents less than 0.05% of net assets. |
(c) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $653,504. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 8,468,999 | ||
Aggregate gross unrealized depreciation | (2,254,278 | ) | ||
Net unrealized appreciation | $ | 6,214,721 | ||
Federal income tax cost | $ | 75,763,644 |
Futures Contracts
FlexShares® US Quality Large Cap Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500E-Mini Index | 9 | 06/21/2019 | USD | $ | 1,326,825 | $ | 64,159 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
184 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® STOXX® US ESG Impact Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.3% | ||||||||
Aerospace & Defense – 0.1% | ||||||||
Arconic, Inc. | 1,404 | $ | 30,158 | |||||
Spirit AeroSystems Holdings, Inc., Class A | 78 | 6,778 | ||||||
36,936 | ||||||||
Air Freight & Logistics – 0.8% | ||||||||
Expeditors International of Washington, Inc. | 598 | 47,493 | ||||||
FedEx Corp.(a) | 728 | 137,927 | ||||||
United Parcel Service, Inc., Class B | 1,612 | 171,227 | ||||||
356,647 | ||||||||
Airlines – 0.4% | ||||||||
Delta Air Lines, Inc. | 1,274 | 74,261 | ||||||
Southwest Airlines Co. | 1,066 | 57,809 | ||||||
United Continental Holdings, Inc.* | 338 | 30,035 | ||||||
162,105 | ||||||||
Auto Components – 0.1% | ||||||||
Aptiv plc | 312 | 26,738 | ||||||
Autoliv, Inc. | 52 | 4,082 | ||||||
BorgWarner, Inc. | 182 | 7,602 | ||||||
Lear Corp.(a) | 130 | 18,590 | ||||||
57,012 | ||||||||
Automobiles – 0.5% | ||||||||
Ford Motor Co. | 5,330 | 55,698 | ||||||
General Motors Co. | 3,900 | 151,905 | ||||||
Tesla, Inc.* (a) | 156 | 37,236 | ||||||
244,839 | ||||||||
Banks – 6.8% | ||||||||
Bank of America Corp. | 27,066 | 827,678 | ||||||
BB&T Corp. | 676 | 34,611 | ||||||
Citigroup, Inc. | 7,150 | 505,505 | ||||||
Citizens Financial Group, Inc. | 364 | 13,177 | ||||||
Comerica, Inc. | 286 | 22,477 | ||||||
Fifth Third Bancorp | 2,106 | 60,695 | ||||||
JPMorgan Chase & Co. | 10,114 | 1,173,730 | ||||||
KeyCorp | 2,964 | 52,018 | ||||||
M&T Bank Corp. | 104 | 17,687 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
PNC Financial Services Group, Inc. (The) | 1,118 | $ | 153,088 | |||||
Regions Financial Corp. | 754 | 11,710 | ||||||
SunTrust Banks, Inc. | 416 | 27,240 | ||||||
US Bancorp | 3,458 | 184,380 | ||||||
3,083,996 | ||||||||
Beverages – 2.4% | ||||||||
Brown-Forman Corp., Class B(a) | 728 | 38,795 | ||||||
Coca-Cola Co. (The) | 9,776 | 479,611 | ||||||
Coca-Cola European Partners plc | 572 | 30,653 | ||||||
Constellation Brands, Inc., Class A | 234 | 49,531 | ||||||
Molson Coors Brewing Co., Class B | 260 | 16,689 | ||||||
PepsiCo, Inc. | 3,796 | 486,078 | ||||||
1,101,357 | ||||||||
Biotechnology – 2.7% | ||||||||
AbbVie, Inc. | 4,368 | 346,776 | ||||||
Alexion Pharmaceuticals, Inc.* | 208 | 28,315 | ||||||
Alnylam Pharmaceuticals, Inc.* | 104 | 9,291 | ||||||
Amgen, Inc. | 1,872 | 335,687 | ||||||
Biogen, Inc.* | 442 | 101,324 | ||||||
Celgene Corp.* (a) | 1,690 | 159,975 | ||||||
Gilead Sciences, Inc. | 1,378 | 89,625 | ||||||
Incyte Corp.* | 208 | 15,974 | ||||||
Regeneron Pharmaceuticals, Inc.* | 156 | 53,530 | ||||||
Vertex Pharmaceuticals, Inc.* | 624 | 105,444 | ||||||
1,245,941 | ||||||||
Building Products – 0.2% | ||||||||
Allegion plc | 182 | 18,060 | ||||||
Johnson Controls International plc | 2,106 | 78,975 | ||||||
Lennox International, Inc.(a) | 52 | 14,115 | ||||||
111,150 | ||||||||
Capital Markets – 2.7% | ||||||||
Bank of New York Mellon Corp. (The) | 2,262 | 112,331 | ||||||
BlackRock, Inc. | 338 | 164,011 | ||||||
Charles Schwab Corp. (The) | 2,340 | 107,125 | ||||||
CME Group, Inc. | 702 | 125,588 | ||||||
E*TRADE Financial Corp. | 104 | 5,269 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 185 |
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Goldman Sachs Group, Inc. (The) | 884 | $ | 182,033 | |||||
Intercontinental Exchange, Inc. | 416 | 33,842 | ||||||
Invesco Ltd. | 572 | 12,567 | ||||||
MarketAxess Holdings, Inc. | 26 | 7,236 | ||||||
Morgan Stanley | 3,224 | 155,558 | ||||||
MSCI, Inc. | 208 | 46,879 | ||||||
Nasdaq, Inc. | 390 | 35,958 | ||||||
Northern Trust Corp.(b) | 338 | 33,310 | ||||||
S&P Global, Inc. | 624 | 137,692 | ||||||
SEI Investments Co. | 78 | 4,247 | ||||||
State Street Corp. | 1,092 | 73,885 | ||||||
1,237,531 | ||||||||
Chemicals – 2.0% | ||||||||
Air Products & Chemicals, Inc. | 598 | 123,062 | ||||||
Celanese Corp.(a) | 442 | 47,687 | ||||||
CF Industries Holdings, Inc. | 182 | 8,150 | ||||||
DowDuPont, Inc. | 5,824 | 223,933 | ||||||
Eastman Chemical Co. | 468 | 36,916 | ||||||
Ecolab, Inc. | 1,014 | 186,657 | ||||||
FMC Corp. | 286 | 22,611 | ||||||
International Flavors & Fragrances, Inc.(a) | 208 | 28,660 | ||||||
LyondellBasell Industries NV, Class A | 728 | 64,231 | ||||||
Mosaic Co. (The) | 650 | 16,972 | ||||||
PPG Industries, Inc. | 546 | 64,155 | ||||||
Sherwin-Williams Co. (The) | 156 | 70,954 | ||||||
893,988 | ||||||||
Commercial Services & Supplies – 0.5% | ||||||||
Cintas Corp.(a) | 208 | 45,165 | ||||||
Republic Services, Inc. | 702 | 58,140 | ||||||
Waste Management, Inc. | 1,066 | 114,424 | ||||||
217,729 | ||||||||
Communications Equipment – 1.8% | ||||||||
Arista Networks, Inc.* | 52 | 16,239 | ||||||
Cisco Systems, Inc. | 13,650 | 763,717 | ||||||
Juniper Networks, Inc. | 702 | 19,495 | ||||||
799,451 |
Investments | Shares | Value | ||||||
Construction Materials – 0.1% | ||||||||
Martin Marietta Materials, Inc. | 52 | $ | 11,539 | |||||
Vulcan Materials Co. | 104 | 13,115 | ||||||
24,654 | ||||||||
Consumer Finance – 0.7% | ||||||||
Ally Financial, Inc. | 1,222 | 36,306 | ||||||
American Express Co. | 1,274 | 149,351 | ||||||
Capital One Financial Corp. | 1,222 | 113,438 | ||||||
Discover Financial Services | 208 | 16,950 | ||||||
Synchrony Financial | 624 | 21,634 | ||||||
337,679 | ||||||||
Containers & Packaging – 0.3% | ||||||||
Avery Dennison Corp. | 104 | 11,508 | ||||||
Ball Corp. | 780 | 46,753 | ||||||
International Paper Co. | 962 | 45,031 | ||||||
Westrock Co. | 572 | 21,953 | ||||||
125,245 | ||||||||
Distributors – 0.0%(c) | ||||||||
Genuine Parts Co. | 182 | 18,662 | ||||||
Diversified Financial Services – 0.7% | ||||||||
Berkshire Hathaway, Inc., Class B* | 1,482 | 321,164 | ||||||
Voya Financial, Inc.(a) | 260 | 14,272 | ||||||
335,436 | ||||||||
Diversified Telecommunication Services – 3.1% | ||||||||
AT&T, Inc. | 21,840 | 676,166 | ||||||
CenturyLink, Inc. | 3,016 | 34,443 | ||||||
Verizon Communications, Inc. | 12,636 | 722,653 | ||||||
1,433,262 | ||||||||
Electric Utilities – 1.8% | ||||||||
Alliant Energy Corp. | 156 | 7,368 | ||||||
American Electric Power Co., Inc. | 1,196 | 102,318 | ||||||
Duke Energy Corp. | 1,794 | 163,469 | ||||||
Entergy Corp. | 130 | 12,597 | ||||||
Evergy, Inc. | 260 | 15,033 | ||||||
Eversource Energy | 1,118 | 80,116 | ||||||
Exelon Corp. | 2,340 | 119,223 | ||||||
FirstEnergy Corp. | 1,196 | 50,268 | ||||||
NextEra Energy, Inc. | 598 | 116,275 | ||||||
Pinnacle West Capital Corp. | 234 | 22,293 |
See Accompanying Notes to the Financial Statements.
186 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
PPL Corp. | 676 | $ | 21,098 | |||||
Southern Co. (The) | 936 | 49,814 | ||||||
Xcel Energy, Inc. | 1,222 | 69,043 | ||||||
828,915 | ||||||||
Electrical Equipment – 0.5% | ||||||||
AMETEK, Inc. | 312 | 27,509 | ||||||
Eaton Corp. plc | 1,378 | 114,126 | ||||||
Emerson Electric Co. | 780 | 55,372 | ||||||
Rockwell Automation, Inc. | 260 | 46,985 | ||||||
243,992 | ||||||||
Electronic Equipment, Instruments & Components – 0.3% | ||||||||
CDW Corp. | 390 | 41,184 | ||||||
Cognex Corp. | 78 | 3,933 | ||||||
TE Connectivity Ltd. | 754 | 72,120 | ||||||
Zebra Technologies Corp., Class A* | 26 | 5,490 | ||||||
122,727 | ||||||||
Energy Equipment & Services – 0.4% | ||||||||
Baker Hughes a GE Co. | 1,196 | 28,728 | ||||||
Halliburton Co. | 2,730 | 77,341 | ||||||
National Oilwell Varco, Inc. | 546 | 14,272 | ||||||
Schlumberger Ltd. | 910 | 38,839 | ||||||
159,180 | ||||||||
Entertainment – 2.2% | ||||||||
Netflix, Inc.* | 442 | 163,779 | ||||||
Spotify Technology SA* | 260 | 35,300 | ||||||
Viacom, Inc., Class B | 1,066 | 30,818 | ||||||
Walt Disney Co. (The) | 5,590 | 765,662 | ||||||
995,559 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.8% | ||||||||
Alexandria Real Estate Equities, Inc. | 26 | 3,702 | ||||||
AvalonBay Communities, Inc. | 390 | 78,363 | ||||||
Camden Property Trust | 52 | 5,234 | ||||||
Digital Realty Trust, Inc.(a) | 182 | 21,423 | ||||||
Duke Realty Corp. | 182 | 5,664 | ||||||
Equinix, Inc. | 156 | 70,933 | ||||||
Equity LifeStyle Properties, Inc. | 156 | 18,205 | ||||||
Equity Residential | 260 | 19,869 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Extra Space Storage, Inc. | 104 | $ | 10,784 | |||||
Federal Realty Investment Trust | 26 | 3,480 | ||||||
HCP, Inc.(a) | 858 | 25,551 | ||||||
Host Hotels & Resorts, Inc. | 2,600 | 50,024 | ||||||
Iron Mountain, Inc. | 650 | 21,112 | ||||||
Mid-America Apartment Communities, Inc. | 52 | 5,689 | ||||||
Prologis, Inc. | 1,196 | 91,697 | ||||||
Public Storage | 260 | 57,507 | ||||||
Realty Income Corp. | 182 | 12,742 | ||||||
Regency Centers Corp. | 104 | 6,986 | ||||||
SBA Communications Corp.* | 78 | 15,891 | ||||||
Simon Property Group, Inc. | 598 | 103,873 | ||||||
SL Green Realty Corp. | 52 | 4,594 | ||||||
Sun Communities, Inc. | 26 | 3,200 | ||||||
UDR, Inc. | 130 | 5,843 | ||||||
Ventas, Inc. | 676 | 41,310 | ||||||
VEREIT, Inc. | 260 | 2,148 | ||||||
Vornado Realty Trust | 494 | 34,155 | ||||||
Weyerhaeuser Co. | 2,392 | 64,106 | ||||||
WP Carey, Inc. | 182 | 14,436 | ||||||
798,521 | ||||||||
Food & Staples Retailing – 1.1% | ||||||||
Kroger Co. (The) | 1,664 | 42,898 | ||||||
Sysco Corp. | 1,898 | 133,562 | ||||||
Walgreens Boots Alliance, Inc. | 1,690 | 90,533 | ||||||
Walmart, Inc. | 2,210 | 227,277 | ||||||
494,270 | ||||||||
Food Products – 1.0% | ||||||||
Archer-Daniels-Midland Co. | 390 | 17,394 | ||||||
Conagra Brands, Inc. | 962 | 29,610 | ||||||
General Mills, Inc. | 2,054 | 105,719 | ||||||
Hershey Co. (The) | 416 | 51,938 | ||||||
Hormel Foods Corp.(a) | 468 | 18,692 | ||||||
JM Smucker Co. (The)(a) | 286 | 35,072 | ||||||
Kellogg Co.(a) | 26 | 1,568 | ||||||
Kraft Heinz Co. (The) | 1,274 | 42,348 | ||||||
McCormick & Co., Inc.(Non-Voting) | 234 | 36,029 | ||||||
Mondelez International, Inc., Class A | 2,366 | 120,311 | ||||||
458,681 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 187 |
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – 2.9% | ||||||||
Abbott Laboratories | 5,642 | $ | 448,878 | |||||
Baxter International, Inc. | 1,144 | 87,287 | ||||||
Becton Dickinson and Co. | 780 | 187,777 | ||||||
Danaher Corp. | 572 | 75,756 | ||||||
DexCom, Inc.* | 78 | 9,443 | ||||||
Edwards Lifesciences Corp.* | 546 | 96,134 | ||||||
Hologic, Inc.* | 884 | 41,000 | ||||||
IDEXX Laboratories, Inc.* | 52 | 12,064 | ||||||
Intuitive Surgical, Inc.* | 104 | 53,106 | ||||||
Medtronic plc | 2,288 | 203,197 | ||||||
Teleflex, Inc. | 26 | 7,441 | ||||||
Varian Medical Systems, Inc.* | 260 | 35,404 | ||||||
Zimmer Biomet Holdings, Inc. | 364 | 44,830 | ||||||
1,302,317 | ||||||||
Health Care Providers & Services – 2.9% | ||||||||
Anthem, Inc. | 598 | 157,292 | ||||||
Centene Corp.* | 416 | 21,449 | ||||||
Cigna Corp. | 832 | 132,155 | ||||||
CVS Health Corp. | 3,978 | 216,324 | ||||||
DaVita, Inc.* | 260 | 14,362 | ||||||
HCA Healthcare, Inc. | 260 | 33,080 | ||||||
Humana, Inc. | 286 | 73,047 | ||||||
Laboratory Corp. of America Holdings* | 156 | 24,948 | ||||||
McKesson Corp. | 416 | 49,608 | ||||||
UnitedHealth Group, Inc. | 2,444 | 569,623 | ||||||
WellCare Health Plans, Inc.* | 52 | 13,434 | ||||||
1,305,322 | ||||||||
Health Care Technology – 0.1% | ||||||||
Veeva Systems, Inc., Class A* | 338 | 47,276 | ||||||
Hotels, Restaurants & Leisure – 2.8% | ||||||||
Carnival Corp. | 1,326 | 72,744 | ||||||
Chipotle Mexican Grill, Inc.* (a) | 26 | 17,889 | ||||||
Darden Restaurants, Inc. | 286 | 33,634 | ||||||
Hilton Worldwide Holdings, Inc. | 806 | 70,114 | ||||||
Las Vegas Sands Corp. | 754 | 50,556 | ||||||
Marriott International, Inc., Class A(a) | 858 | 117,048 | ||||||
McDonald’s Corp. | 2,366 | 467,451 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
MGM Resorts International | 962 | $ | 25,618 | |||||
Royal Caribbean Cruises Ltd. | 312 | 37,733 | ||||||
Starbucks Corp. | 4,004 | 311,031 | ||||||
Vail Resorts, Inc.(a) | 78 | 17,850 | ||||||
Yum! Brands, Inc. | 676 | 70,568 | ||||||
1,292,236 | ||||||||
Household Durables – 0.1% | ||||||||
Garmin Ltd. | 104 | 8,917 | ||||||
Lennar Corp., Class A | 832 | 43,289 | ||||||
PulteGroup, Inc. | 208 | 6,544 | ||||||
58,750 | ||||||||
Household Products – 2.4% | ||||||||
Church & Dwight Co., Inc. | 676 | 50,666 | ||||||
Clorox Co. (The) | 442 | 70,600 | ||||||
Colgate-Palmolive Co. | 1,638 | 119,230 | ||||||
Kimberly-Clark Corp. | 468 | 60,082 | ||||||
Procter & Gamble Co. (The) | 7,566 | 805,628 | ||||||
1,106,206 | ||||||||
Independent Power and Renewable Electricity Producers – 0.1% | ||||||||
AES Corp. | 2,860 | 48,963 | ||||||
Vistra Energy Corp. | 338 | 9,211 | ||||||
58,174 | ||||||||
Industrial Conglomerates – 1.0% | ||||||||
3M Co. | 1,222 | 231,581 | ||||||
General Electric Co. | 15,600 | 158,652 | ||||||
Roper Technologies, Inc. | 130 | 46,761 | ||||||
436,994 | ||||||||
Insurance – 2.2% | ||||||||
Aflac, Inc. | 1,976 | 99,551 | ||||||
Alleghany Corp.* | 26 | 17,079 | ||||||
Allstate Corp. (The) | 936 | 92,720 | ||||||
American International Group, Inc. | 1,742 | 82,867 | ||||||
Aon plc | 624 | 112,407 | ||||||
Arthur J Gallagher & Co. | 130 | 10,871 | ||||||
Hartford Financial Services Group, Inc. (The) | 546 | 28,561 | ||||||
Lincoln National Corp. | 312 | 20,817 | ||||||
Loews Corp. | 182 | 9,335 |
See Accompanying Notes to the Financial Statements.
188 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Marsh & McLennan Cos., Inc. | 936 | $ | 88,255 | |||||
MetLife, Inc. | 1,560 | 71,963 | ||||||
Principal Financial Group, Inc. | 468 | 26,751 | ||||||
Progressive Corp. (The) | 1,690 | 132,074 | ||||||
Prudential Financial, Inc. | 728 | 76,957 | ||||||
Reinsurance Group of America, Inc. | 338 | 51,210 | ||||||
Travelers Cos., Inc. (The) | 442 | 63,537 | ||||||
Unum Group | 312 | 11,519 | ||||||
996,474 | ||||||||
Interactive Media & Services – 3.7% | ||||||||
Alphabet, Inc., Class C* | 962 | 1,143,318 | ||||||
Facebook, Inc., Class A* | 2,548 | 492,783 | ||||||
Twitter, Inc.* | 702 | 28,017 | ||||||
1,664,118 | ||||||||
Internet & Direct Marketing Retail – 5.6% | ||||||||
Amazon.com, Inc.* | 1,256 | 2,419,709 | ||||||
eBay, Inc. | 2,548 | 98,735 | ||||||
Expedia Group, Inc. | 78 | 10,127 | ||||||
Wayfair, Inc., Class A* (a) | 52 | 8,432 | ||||||
2,537,003 | ||||||||
IT Services – 4.9% | ||||||||
Accenture plc, Class A | 1,924 | 351,457 | ||||||
Akamai Technologies, Inc.* | 494 | 39,550 | ||||||
Alliance Data Systems Corp. | 130 | 20,813 | ||||||
Amdocs Ltd. | 52 | 2,864 | ||||||
Cognizant Technology Solutions Corp., Class A | 1,170 | 85,363 | ||||||
DXC Technology Co. | 702 | 46,150 | ||||||
Fidelity National Information Services, Inc. | 312 | 36,170 | ||||||
Fiserv, Inc.* | 650 | 56,706 | ||||||
Gartner, Inc.* | 78 | 12,400 | ||||||
Global Payments, Inc. | 104 | 15,191 | ||||||
GoDaddy, Inc., Class A* | 156 | 12,714 | ||||||
International Business Machines Corp. | 2,652 | 371,996 | ||||||
Leidos Holdings, Inc. | 286 | 21,015 | ||||||
Mastercard, Inc., Class A | 2,756 | 700,685 | ||||||
PayPal Holdings, Inc.* | 3,588 | 404,619 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
Total System Services, Inc. | 130 | $ | 13,291 | |||||
VeriSign, Inc.* | 104 | 20,535 | ||||||
Western Union Co. (The) | 286 | 5,560 | ||||||
2,217,079 | ||||||||
Leisure Products – 0.0%(c) | ||||||||
Hasbro, Inc. | 182 | 18,539 | ||||||
Life Sciences Tools & Services – 1.1% | ||||||||
Agilent Technologies, Inc. | 910 | 71,435 | ||||||
Mettler-Toledo International, Inc.* (a) | 78 | 58,130 | ||||||
Thermo Fisher Scientific, Inc. | 1,170 | 324,617 | ||||||
Waters Corp.* | 130 | 27,760 | ||||||
481,942 | ||||||||
Machinery – 1.6% | ||||||||
Caterpillar, Inc. | 754 | 105,123 | ||||||
Cummins, Inc. | 468 | 77,824 | ||||||
Deere & Co. | 936 | 155,030 | ||||||
Dover Corp. | 286 | 28,039 | ||||||
Fortive Corp. | 104 | 8,979 | ||||||
IDEX Corp. | 130 | 20,366 | ||||||
Illinois Tool Works, Inc. | 494 | 76,881 | ||||||
Ingersoll-Rand plc | 598 | 73,321 | ||||||
PACCAR, Inc. | 676 | 48,449 | ||||||
Parker-Hannifin Corp. | 234 | 42,373 | ||||||
Pentair plc | 260 | 10,137 | ||||||
Snap-on, Inc. | 26 | 4,375 | ||||||
Stanley Black & Decker, Inc. | 364 | 53,362 | ||||||
Xylem, Inc. | 442 | 36,863 | ||||||
741,122 | ||||||||
Media – 1.6% | ||||||||
CBS Corp.(Non-Voting), Class B | 286 | 14,663 | ||||||
Charter Communications, Inc., Class A* | 156 | 57,906 | ||||||
Comcast Corp., Class A | 13,832 | 602,107 | ||||||
Interpublic Group of Cos., Inc. (The) | 572 | 13,156 | ||||||
Liberty Broadband Corp., Class C* | 156 | 15,399 | ||||||
Sirius XM Holdings, Inc.(a) | 962 | 5,589 | ||||||
708,820 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 189 |
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – 0.2% | ||||||||
Newmont Goldcorp Corp.(a) | 2,080 | $ | 64,605 | |||||
Nucor Corp. | 416 | 23,741 | ||||||
88,346 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.0%(c) | ||||||||
AGNC Investment Corp. | 312 | 5,551 | ||||||
Annaly Capital Management, Inc. | 1,378 | 13,904 | ||||||
19,455 | ||||||||
Multiline Retail – 0.6% | ||||||||
Dollar General Corp. | 806 | 101,628 | ||||||
Kohl’s Corp. | 416 | 29,578 | ||||||
Target Corp. | 1,586 | 122,788 | ||||||
253,994 | ||||||||
Multi-Utilities – 1.3% | ||||||||
Ameren Corp. | 754 | 54,869 | ||||||
CenterPoint Energy, Inc. | 364 | 11,284 | ||||||
CMS Energy Corp. | 546 | 30,330 | ||||||
Consolidated Edison, Inc. | 234 | 20,161 | ||||||
Dominion Energy, Inc. | 2,288 | 178,167 | ||||||
DTE Energy Co. | 494 | 62,101 | ||||||
NiSource, Inc. | 1,690 | 46,948 | ||||||
Public Service Enterprise Group, Inc. | 650 | 38,772 | ||||||
Sempra Energy | 858 | 109,781 | ||||||
WEC Energy Group, Inc. | 676 | 53,019 | ||||||
605,432 | ||||||||
Oil, Gas & Consumable Fuels – 1.8% | ||||||||
Cabot Oil & Gas Corp. | 338 | 8,751 | ||||||
Cimarex Energy Co. | 52 | 3,570 | ||||||
Concho Resources, Inc. | 182 | 20,999 | ||||||
ConocoPhillips | 2,990 | 188,729 | ||||||
Devon Energy Corp. | 1,898 | 61,002 | ||||||
Diamondback Energy, Inc. | 130 | 13,831 | ||||||
EOG Resources, Inc. | 1,456 | 139,849 | ||||||
Hess Corp. | 1,014 | 65,018 | ||||||
HollyFrontier Corp. | 130 | 6,205 | ||||||
Kinder Morgan, Inc. | 1,482 | 29,447 | ||||||
Marathon Oil Corp. | 598 | 10,190 | ||||||
ONEOK, Inc.(a) | 936 | 63,582 | ||||||
Phillips 66 | 390 | 36,765 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Pioneer Natural Resources Co. | 156 | $ | 25,968 | |||||
Valero Energy Corp. | 1,066 | 96,643 | ||||||
Williams Cos., Inc. (The) | 988 | 27,990 | ||||||
798,539 | ||||||||
Personal Products – 0.2% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 650 | 111,677 | ||||||
Pharmaceuticals – 3.6% | ||||||||
Allergan plc | 806 | 118,482 | ||||||
Bristol-Myers Squibb Co.(a) | 3,302 | 153,312 | ||||||
Eli Lilly & Co. | 1,976 | 231,271 | ||||||
Merck & Co., Inc. | 7,852 | 618,031 | ||||||
Mylan NV* | 26 | 702 | ||||||
Pfizer, Inc. | 11,466 | 465,634 | ||||||
Zoetis, Inc. | 728 | 74,139 | ||||||
1,661,571 | ||||||||
Professional Services – 0.1% | ||||||||
Robert Half International, Inc. | 26 | 1,615 | ||||||
TransUnion | 52 | 3,622 | ||||||
Verisk Analytics, Inc. | 338 | 47,705 | ||||||
52,942 | ||||||||
Real Estate Management & Development – 0.2% | ||||||||
CBRE Group, Inc., Class A* | 1,456 | 75,814 | ||||||
Road & Rail – 1.1% | ||||||||
CSX Corp. | 1,638 | 130,434 | ||||||
JB Hunt Transport Services, Inc. | 104 | 9,826 | ||||||
Kansas City Southern | 78 | 9,605 | ||||||
Norfolk Southern Corp. | 520 | 106,091 | ||||||
Union Pacific Corp. | 1,482 | 262,373 | ||||||
518,329 | ||||||||
Semiconductors & Semiconductor Equipment – 4.1% | ||||||||
Advanced Micro Devices, Inc.* (a) | 1,976 | 54,597 | ||||||
Intel Corp. | 14,404 | 735,180 | ||||||
Lam Research Corp. | 286 | 59,325 | ||||||
Maxim Integrated Products, Inc. | 494 | 29,640 | ||||||
Microchip Technology, Inc.(a) | 546 | 54,540 | ||||||
NVIDIA Corp. | 1,222 | 221,182 | ||||||
ON Semiconductor Corp.* | 1,794 | 41,369 | ||||||
QUALCOMM, Inc. | 2,990 | 257,529 |
See Accompanying Notes to the Financial Statements.
190 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Teradyne, Inc. | 364 | $ | 17,836 | |||||
Texas Instruments, Inc. | 2,782 | 327,803 | ||||||
Xilinx, Inc. | 572 | 68,720 | ||||||
1,867,721 | ||||||||
Software – 9.1% | ||||||||
Adobe, Inc.* | 1,222 | 353,463 | ||||||
Autodesk, Inc.* | 650 | 115,836 | ||||||
Citrix Systems, Inc.(a) | 104 | 10,500 | ||||||
Fortinet, Inc.* | 104 | 9,716 | ||||||
Intuit, Inc. | 754 | 189,299 | ||||||
Microsoft Corp. | 18,850 | 2,461,810 | ||||||
Oracle Corp. | 7,878 | 435,890 | ||||||
Paycom Software, Inc.* | 26 | 5,266 | ||||||
salesforce.com, Inc.* | 2,314 | 382,620 | ||||||
ServiceNow, Inc.* | 182 | 49,415 | ||||||
Splunk, Inc.* | 520 | 71,781 | ||||||
Symantec Corp. | 1,924 | 46,580 | ||||||
Tableau Software, Inc., Class A* | 52 | 6,334 | ||||||
Tyler Technologies, Inc.* | 26 | 6,030 | ||||||
4,144,540 | ||||||||
Specialty Retail – 1.3% | ||||||||
Advance Auto Parts, Inc. | 78 | 12,973 | ||||||
AutoZone, Inc.* | 52 | 53,472 | ||||||
Best Buy Co., Inc. | 702 | 52,236 | ||||||
Burlington Stores, Inc.* (a) | 156 | 26,350 | ||||||
Gap, Inc. (The) | 1,118 | 29,157 | ||||||
Lowe’s Cos., Inc. | 1,924 | 217,681 | ||||||
TJX Cos., Inc. (The) | 3,744 | 205,471 | ||||||
Tractor Supply Co. | 104 | 10,764 | ||||||
608,104 | ||||||||
Technology Hardware, Storage & Peripherals – 5.8% | ||||||||
Apple, Inc. | 12,090 | 2,426,100 | ||||||
Dell Technologies, Inc., Class C* | 390 | 26,290 | ||||||
Hewlett Packard Enterprise Co. | 4,056 | 64,125 | ||||||
HP, Inc. | 3,640 | 72,618 | ||||||
NetApp, Inc. | 468 | 34,094 | ||||||
2,623,227 |
Investments | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods – 0.3% | ||||||||
PVH Corp. | 286 | $ | 36,891 | |||||
Tapestry, Inc.(a) | 702 | 22,654 | ||||||
VF Corp. | 988 | 93,277 | ||||||
152,822 | ||||||||
Tobacco – 1.1% | ||||||||
Altria Group, Inc. | 2,522 | 137,020 | ||||||
Philip Morris International, Inc. | 3,978 | 344,336 | ||||||
481,356 | ||||||||
Trading Companies & Distributors – 0.4% | ||||||||
Fastenal Co.(a) | 1,040 | 73,372 | ||||||
HD Supply Holdings, Inc.* | 468 | 21,383 | ||||||
United Rentals, Inc.* | 260 | 36,639 | ||||||
WW Grainger, Inc. | 130 | 36,660 | ||||||
168,054 | ||||||||
Water Utilities – 0.1% | ||||||||
American Water Works Co., Inc.(a) | 442 | 47,820 | ||||||
Total Common Stocks (Cost $38,184,168) |
| 45,177,580 | ||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(d) – 0.2% | ||||||||
REPURCHASE AGREEMENTS – 0.2% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $111,500, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $113,729 (Cost $111,491) | $ | 111,491 | 111,491 | |||||
Total Investments – 99.5% (Cost $38,295,659) |
| 45,289,071 | ||||||
Other Assets Less Liabilities – 0.5% |
| 247,611 | ||||||
NET ASSETS – 100.0% |
| $ | 45,536,682 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $1,235,716, collateralized in the form of cash with a value of |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 191 |
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
$111,491 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $931,872 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 9, 2019 – November 15, 2048 and $264,536 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.50%, and maturity dates ranging from October 7, 2019 – March 22, 2068; a total value of $1,307,899. |
(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) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $111,491. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 7,235,347 | ||
Aggregate gross unrealized depreciation | (288,386 | ) | ||
Net unrealized appreciation | $ | 6,946,961 | ||
Federal income tax cost | $ | 38,355,790 |
Investment in a company which was affiliated for the period ended April 30, 2019, was as follows:
Security | Value October 31, 2018 | Purchases at Cost | Sales Proceeds | Shares April 30, 2019 | Value April 30, 2019 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain/(Loss) | ||||||||||||||||||||||||
Northern Trust Corp. | $ | — | $ | 32,116 | $ | — | 338 | $ | 33,310 | $ | 1,194 | $ | — | $ | — |
Futures Contracts
FlexShares® STOXX® US ESG Impact Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500E-Mini Index | 2 | 06/21/2019 | USD | $ | 294,850 | $ | 13,680 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
192 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® STOXX® Global ESG Impact Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.8% | ||||||||
Aerospace & Defense – 0.0%(a) | ||||||||
Arconic, Inc. | 900 | $ | 19,332 | |||||
Cobham plc* | 2,325 | 3,495 | ||||||
Saab AB, Class B | 285 | 9,368 | ||||||
32,195 | ||||||||
Air Freight & Logistics – 0.3% | ||||||||
Bollore SA | 3,825 | 18,158 | ||||||
Deutsche Post AG (Registered)* | 1,125 | 38,958 | ||||||
Expeditors International of Washington, Inc. | 420 | 33,357 | ||||||
United Parcel Service, Inc., Class B | 990 | 105,158 | ||||||
195,631 | ||||||||
Airlines – 0.4% | ||||||||
AirFrance-KLM* | 750 | 8,657 | ||||||
Delta Air Lines, Inc. | 1,320 | 76,943 | ||||||
Deutsche Lufthansa AG (Registered) | 735 | 17,726 | ||||||
easyJet plc | 1,005 | 15,244 | ||||||
International Consolidated Airlines Group SA, DI | 4,830 | 34,027 | ||||||
Qantas Airways Ltd. | 1,890 | 7,463 | ||||||
Singapore Airlines Ltd. | 1,500 | 10,667 | ||||||
Southwest Airlines Co. | 1,185 | 64,262 | ||||||
United Continental Holdings, Inc.* | 510 | 45,319 | ||||||
280,308 | ||||||||
Auto Components – 0.5% | ||||||||
Aptiv plc | 285 | 24,425 | ||||||
BorgWarner, Inc. | 210 | 8,772 | ||||||
Bridgestone Corp. | 4,500 | 178,020 | ||||||
Cie Generale des Etablissements Michelin SCA | 540 | 69,686 | ||||||
Continental AG | 330 | 54,498 | ||||||
Hella GmbH & Co. KGaA | 210 | 11,405 | ||||||
Nokian Renkaat OYJ | 420 | 14,036 | ||||||
Pirelli & C SpA* (b) | 1,800 | 13,128 | ||||||
373,970 | ||||||||
Automobiles – 2.1% | ||||||||
Bayerische Motoren Werke AG | 1,050 | 89,314 | ||||||
Daimler AG (Registered)* | 1,665 | 108,860 |
Investments | Shares | Value | ||||||
Automobiles – (continued) | ||||||||
Ferrari NV | 300 | $ | 40,597 | |||||
Fiat Chrysler Automobiles NV(c) | 1,905 | 29,321 | ||||||
Ford Motor Co. | 6,870 | 71,792 | ||||||
General Motors Co. | 4,740 | 184,623 | ||||||
Honda Motor Co. Ltd. | 9,000 | 250,586 | ||||||
Nissan Motor Co. Ltd.(c) | 6,000 | 48,124 | ||||||
Peugeot SA | 1,680 | 43,982 | ||||||
Renault SA | 645 | 43,964 | ||||||
Toyota Motor Corp. | 10,500 | 650,976 | ||||||
1,562,139 | ||||||||
Banks – 10.5% | ||||||||
ABN AMRO Group NV, CVA(b) | 1,800 | 42,302 | ||||||
Australia & New Zealand Banking Group Ltd. | 6,435 | 123,196 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 17,865 | 108,475 | ||||||
Banco Santander SA | 51,300 | 259,375 | ||||||
Bank of America Corp. | 35,100 | 1,073,358 | ||||||
Bank of Ireland Group plc* | 2,490 | 15,878 | ||||||
Bank of Montreal | 1,140 | 89,678 | ||||||
Bank of Nova Scotia (The) | 2,640 | 144,796 | ||||||
Bank Polska Kasa Opieki SA | 315 | 9,356 | ||||||
Bankia SA | 4,575 | 12,639 | ||||||
Bankinter SA | 1,005 | 8,017 | ||||||
Barclays plc | 38,280 | 81,982 | ||||||
BNP Paribas SA | 2,715 | 144,376 | ||||||
Citigroup, Inc. | 9,810 | 693,567 | ||||||
Commerzbank AG* | 3,570 | 32,055 | ||||||
Commonwealth Bank of Australia | 6,585 | 345,389 | ||||||
DBS Group Holdings Ltd. | 4,500 | 93,392 | ||||||
DNB ASA* (c) | 2,055 | 39,365 | ||||||
Erste Group Bank AG* | 915 | 36,608 | ||||||
Fifth Third Bancorp | 1,185 | 34,152 | ||||||
Hang Seng Bank Ltd. | 1,800 | 47,263 | ||||||
HSBC Holdings plc | 51,300 | 446,138 | ||||||
ING Groep NV(c) | 12,180 | 155,011 | ||||||
Intesa Sanpaolo SpA | 38,430 | 100,651 | ||||||
JPMorgan Chase & Co. | 13,155 | 1,526,638 | ||||||
KBC Group NV | 870 | 64,370 | ||||||
KeyCorp | 3,780 | 66,339 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 193 |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Lloyds Banking Group plc | 184,470 | $ | 150,471 | |||||
Mediobanca Banca di Credito Finanziario SpA | 1,650 | 17,475 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 30,000 | 148,121 | ||||||
Mizuho Financial Group, Inc. | 118,500 | 184,599 | ||||||
National Australia Bank Ltd. | 6,420 | 114,550 | ||||||
Nordea Bank Abp | 3,375 | 26,537 | ||||||
Royal Bank of Canada | 3,015 | 239,304 | ||||||
Royal Bank of Scotland Group plc | 7,800 | 24,364 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 3,810 | 36,317 | ||||||
Societe Generale SA | 2,160 | 68,313 | ||||||
Standard Chartered plc | 9,075 | 82,814 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 1,500 | 52,040 | ||||||
Svenska Handelsbanken AB, Class A | 4,245 | 46,282 | ||||||
Swedbank AB, Class A | 1,365 | 22,119 | ||||||
Toronto-Dominion Bank (The) | 3,645 | 207,070 | ||||||
UniCredit SpA | 6,915 | 95,553 | ||||||
Unione di Banche Italiane SpA | 4,680 | 14,581 | ||||||
United Overseas Bank Ltd. | 3,000 | 61,336 | ||||||
US Bancorp | 3,720 | 198,350 | ||||||
Westpac Banking Corp. | 9,735 | 188,498 | ||||||
7,773,060 | ||||||||
Beverages – 2.5% | ||||||||
Anheuser-Busch InBev SA/NV | 810 | 71,950 | ||||||
Brown-Forman Corp., Class B | 870 | 46,362 | ||||||
Carlsberg A/S, Class B | 180 | 23,232 | ||||||
Coca-Cola Amatil Ltd. | 1,785 | 11,056 | ||||||
Coca-Cola Co. (The) | 11,610 | 569,587 | ||||||
Coca-Cola European Partners plc | 570 | 30,546 | ||||||
Coca-Cola HBC AG, DI* | 570 | 20,368 | ||||||
Diageo plc | 4,965 | 209,292 | ||||||
Heineken Holding NV | 210 | 21,311 | ||||||
Heineken NV(c) | 675 | 72,803 | ||||||
Kirin Holdings Co. Ltd. | 3,000 | 67,865 | ||||||
Molson Coors Brewing Co., Class B | 255 | 16,368 | ||||||
PepsiCo, Inc. | 4,575 | 585,829 | ||||||
Pernod Ricard SA | 495 | 86,180 | ||||||
Remy Cointreau SA | 30 | 3,994 | ||||||
Royal Unibrew A/S | 60 | 4,296 |
Investments | Shares | Value | ||||||
Beverages – (continued) | ||||||||
Suntory Beverage & Food Ltd. | 400 | $ | 17,598 | |||||
Thai Beverage PCL | 27,000 | 16,662 | ||||||
Treasury Wine Estates Ltd. | 150 | 1,816 | ||||||
1,877,115 | ||||||||
Biotechnology – 1.6% | ||||||||
AbbVie, Inc. | 4,515 | 358,446 | ||||||
Amgen, Inc. | 1,845 | 330,846 | ||||||
Biogen, Inc.* | 405 | 92,842 | ||||||
Celgene Corp.* | 1,185 | 112,172 | ||||||
CSL Ltd. | 1,155 | 161,427 | ||||||
Regeneron Pharmaceuticals, Inc.* | 60 | 20,588 | ||||||
Vertex Pharmaceuticals, Inc.* | 735 | 124,200 | ||||||
1,200,521 | ||||||||
Building Products – 0.4% | ||||||||
Assa Abloy AB, Class B | 3,000 | 63,933 | ||||||
Cie de Saint-Gobain | 255 | 10,414 | ||||||
Daikin Industries Ltd. | 1,500 | 189,899 | ||||||
Geberit AG (Registered) | 120 | 50,320 | ||||||
Kingspan Group plc | 210 | 11,033 | ||||||
Rockwool International A/S, Class B | 30 | 8,007 | ||||||
333,606 | ||||||||
Capital Markets – 2.3% | ||||||||
3i Group plc | 2,145 | 29,935 | ||||||
Bank of New York Mellon Corp. (The) | 2,325 | 115,460 | ||||||
BlackRock, Inc. | 525 | 254,751 | ||||||
Charles Schwab Corp. (The) | 2,580 | 118,112 | ||||||
Credit Suisse Group AG (Registered)* | 3,870 | 51,651 | ||||||
Deutsche Bank AG (Registered) | 1,815 | 14,989 | ||||||
Deutsche Boerse AG | 435 | 57,964 | ||||||
Goldman Sachs Group, Inc. (The) | 915 | 188,417 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 2,327 | 80,677 | ||||||
Invesco Ltd. | 720 | 15,818 | ||||||
Investec plc | 3,600 | 22,762 | ||||||
Julius Baer Group Ltd.* | 810 | 39,045 | ||||||
Jupiter Fund Management plc | 1,710 | 8,366 | ||||||
Macquarie Group Ltd. | 1,245 | 118,037 | ||||||
Morgan Stanley | 3,735 | 180,214 |
See Accompanying Notes to the Financial Statements.
194 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Natixis SA | 3,030 | $ | 17,821 | |||||
Northern Trust Corp.(d) | 330 | 32,521 | ||||||
S&P Global, Inc. | 705 | 155,565 | ||||||
Schroders plc | 75 | 3,096 | ||||||
St James’s Place plc | 1,110 | 16,229 | ||||||
State Street Corp. | 1,110 | 75,103 | ||||||
UBS Group AG (Registered)* | 9,525 | 127,732 | ||||||
1,724,265 | ||||||||
Chemicals – 1.7% | ||||||||
Air Liquide SA | 810 | 107,616 | ||||||
Akzo Nobel NV | 861 | 73,045 | ||||||
Arkema SA | 150 | 15,375 | ||||||
BASF SE | 570 | 46,307 | ||||||
Celanese Corp. | 300 | 32,367 | ||||||
Chr Hansen Holding A/S | 210 | 21,405 | ||||||
Clariant AG (Registered)* | 645 | 13,254 | ||||||
Croda International plc | 322 | 21,758 | ||||||
DowDuPont, Inc. | 5,160 | 198,402 | ||||||
Ecolab, Inc. | 720 | 132,538 | ||||||
FUCHS PETROLUB SE (Preference) | 255 | 11,082 | ||||||
Givaudan SA (Registered) | 15 | 38,847 | ||||||
Hexpol AB | 1,050 | 8,173 | ||||||
International Flavors & Fragrances, Inc. | 285 | 39,270 | ||||||
Johnson Matthey plc | 675 | 29,364 | ||||||
Koninklijke DSM NV | 796 | 90,858 | ||||||
LyondellBasell Industries NV, Class A | 405 | 35,733 | ||||||
Mitsubishi Chemical Holdings Corp. | 6,000 | 42,510 | ||||||
Novozymes A/S, Class B | 555 | 25,844 | ||||||
Orica Ltd. | 840 | 10,997 | ||||||
PPG Industries, Inc. | 600 | 70,500 | ||||||
Sherwin-Williams Co. (The) | 195 | 88,692 | ||||||
Sika AG (Registered) | 225 | 34,445 | ||||||
Sumitomo Chemical Co. Ltd. | 7,500 | 37,172 | ||||||
Symrise AG | 165 | 15,847 | ||||||
Umicore SA(c) | 330 | 12,759 | ||||||
Victrex plc | 240 | 7,609 | ||||||
Yara International ASA | 540 | 24,298 | ||||||
1,286,067 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – 0.4% | ||||||||
Brambles Ltd. | 6,690 | $ | 56,741 | |||||
Cintas Corp. | 180 | 39,085 | ||||||
Downer EDI Ltd. | 750 | 4,086 | ||||||
Edenred | 810 | 38,135 | ||||||
Elis SA(c) | 840 | 14,968 | ||||||
ISS A/S | 45 | 1,398 | ||||||
Rentokil Initial plc | 6,960 | 35,386 | ||||||
Republic Services, Inc. | 420 | 34,784 | ||||||
Securitas AB, Class B | 1,485 | 25,930 | ||||||
Societe BIC SA | 105 | 9,043 | ||||||
SPIE SA | 495 | 9,542 | ||||||
Tomra Systems ASA* | 270 | 8,112 | ||||||
Waste Management, Inc. | 390 | 41,863 | ||||||
319,073 | ||||||||
Communications Equipment – 1.3% | ||||||||
Cisco Systems, Inc. | 14,295 | 799,805 | ||||||
Nokia OYJ | 10,380 | 54,430 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 7,875 | 77,866 | ||||||
932,101 | ||||||||
Construction & Engineering – 0.3% | ||||||||
Balfour Beatty plc | 2,610 | 8,547 | ||||||
Bouygues SA(c) | 930 | 34,957 | ||||||
Eiffage SA | 195 | 20,346 | ||||||
Ferrovial SA | 810 | 19,935 | ||||||
HOCHTIEF AG | 60 | 8,943 | ||||||
Kajima Corp. | 3,000 | 44,310 | ||||||
Skanska AB, Class B | 1,650 | 28,689 | ||||||
Vinci SA | 900 | 90,797 | ||||||
256,524 | ||||||||
Construction Materials – 0.2% | ||||||||
Boral Ltd. | 1,215 | 4,148 | ||||||
CRH plc | 1,005 | 33,710 | ||||||
HeidelbergCement AG | 285 | 22,997 | ||||||
LafargeHolcim Ltd. (Registered)* | 1,230 | 63,226 | ||||||
Wienerberger AG | 285 | 6,535 | ||||||
130,616 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 195 |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Consumer Finance – 0.4% | ||||||||
American Express Co. | 1,350 | $ | 158,260 | |||||
Capital One Financial Corp. | 1,200 | 111,396 | ||||||
269,656 | ||||||||
Containers & Packaging – 0.2% | ||||||||
Amcor Ltd. | 2,385 | 26,909 | ||||||
Ball Corp. | 990 | 59,341 | ||||||
DS Smith plc | 4,305 | 20,036 | ||||||
Huhtamaki OYJ | 255 | 9,719 | ||||||
International Paper Co. | 135 | 6,319 | ||||||
Orora Ltd. | 3,810 | 8,125 | ||||||
RPC Group plc | 1,440 | 14,812 | ||||||
Smurfit Kappa Group plc | 690 | 20,206 | ||||||
165,467 | ||||||||
Diversified Financial Services – 0.2% | ||||||||
Eurazeo SE* | 78 | 6,115 | ||||||
EXOR NV | 375 | 24,947 | ||||||
Kinnevik AB, Class B | 690 | 20,068 | ||||||
L E Lundbergforetagen AB, Class B | 495 | 16,901 | ||||||
Voya Financial, Inc. | 840 | 46,107 | ||||||
Wendel SA | 30 | 4,149 | ||||||
118,287 | ||||||||
Diversified Telecommunication Services – 3.5% | ||||||||
AT&T, Inc. | 27,600 | 854,496 | ||||||
BCE, Inc. | 1,245 | 55,475 | ||||||
BT Group plc | 23,520 | 70,231 | ||||||
Deutsche Telekom AG (Registered) | 8,265 | 138,142 | ||||||
Elisa OYJ | 405 | 17,170 | ||||||
Inmarsat plc | 1,020 | 7,250 | ||||||
Koninklijke KPN NV | 13,815 | 42,360 | ||||||
Orange SA | 5,865 | 91,791 | ||||||
PCCW Ltd. | 15,000 | 9,044 | ||||||
Proximus SADP | 585 | 16,357 | ||||||
Singapore Telecommunications Ltd. | 24,000 | 55,892 | ||||||
Spark New Zealand Ltd. | 7,080 | 17,328 | ||||||
Sunrise Communications Group AG* (b) (c) | 120 | 7,967 | ||||||
Swisscom AG (Registered)(c) | 90 | 41,926 | ||||||
Telecom Italia SpA* (c) | 30,675 | 17,141 | ||||||
Telenor ASA | 1,920 | 38,456 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
Telia Co. AB | 8,055 | $ | 34,264 | |||||
Telstra Corp. Ltd. | 46,635 | 110,945 | ||||||
TELUS Corp. | 900 | 33,004 | ||||||
United Internet AG (Registered) | 345 | 13,815 | ||||||
Verizon Communications, Inc. | 15,585 | 891,306 | ||||||
2,564,360 | ||||||||
Electric Utilities – 1.1% | ||||||||
American Electric Power Co., Inc. | 510 | 43,631 | ||||||
CK Infrastructure Holdings Ltd. | 1,500 | 12,179 | ||||||
CLP Holdings Ltd. | 5,000 | 56,689 | ||||||
Contact Energy Ltd. | 2,310 | 10,337 | ||||||
Duke Energy Corp. | 915 | 83,375 | ||||||
EDP – Energias de Portugal SA* | 4,635 | 17,552 | ||||||
Electricite de France SA | 1,830 | 26,333 | ||||||
Endesa SA | 390 | 9,707 | ||||||
Enel SpA | 24,150 | 152,619 | ||||||
Eversource Energy | 885 | 63,419 | ||||||
Exelon Corp. | 915 | 46,619 | ||||||
FirstEnergy Corp. | 375 | 15,761 | ||||||
Fortis, Inc. | 975 | 35,892 | ||||||
Fortum OYJ | 1,350 | 28,504 | ||||||
Iberdrola SA | 15,364 | 139,435 | ||||||
Orsted A/S(b) | 435 | 33,277 | ||||||
Red Electrica Corp. SA | 585 | 12,119 | ||||||
Spark Infrastructure Group | 4,830 | 7,683 | ||||||
Terna Rete Elettrica Nazionale SpA | 5,145 | 30,779 | ||||||
Xcel Energy, Inc. | 450 | 25,425 | ||||||
851,335 | ||||||||
Electrical Equipment – 0.6% | ||||||||
ABB Ltd. (Registered)* (c) | 2,250 | 46,303 | ||||||
Eaton Corp. plc | 1,005 | 83,234 | ||||||
Legrand SA | 570 | 41,854 | ||||||
Mitsubishi Electric Corp. | 7,500 | 106,532 | ||||||
Prysmian SpA | 945 | 18,205 | ||||||
Schneider Electric SE | 945 | 79,917 | ||||||
Siemens Gamesa Renewable Energy SA | 465 | 8,333 | ||||||
Signify NV(b) | 165 | 4,943 | ||||||
Vestas Wind Systems A/S | 495 | 44,732 | ||||||
434,053 |
See Accompanying Notes to the Financial Statements.
196 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components – 0.8% | ||||||||
AAC Technologies Holdings, Inc.(c) | 2,000 | $ | 12,925 | |||||
Electrocomponents plc | 3,165 | 26,638 | ||||||
Halma plc | 960 | 22,521 | ||||||
Hexagon AB, Class B | 795 | 43,317 | ||||||
Hitachi Ltd. | 6,100 | 202,046 | ||||||
Ingenico Group SA | 90 | 7,581 | ||||||
Murata Manufacturing Co. Ltd. | 2,400 | 128,431 | ||||||
Omron Corp. | 1,500 | 80,135 | ||||||
Shimadzu Corp. | 1,500 | 40,054 | ||||||
Spectris plc | 750 | 26,868 | ||||||
590,516 | ||||||||
Energy Equipment & Services – 0.1% | ||||||||
Halliburton Co. | 1,920 | 54,394 | ||||||
John Wood Group plc | 990 | 6,072 | ||||||
Saipem SpA* | 2,835 | 14,351 | ||||||
Tenaris SA | 630 | 8,741 | ||||||
TGS NOPEC Geophysical Co. ASA | 330 | 8,601 | ||||||
WorleyParsons Ltd. | 1,387 | 13,980 | ||||||
106,139 | ||||||||
Entertainment – 1.5% | ||||||||
CD Projekt SA* | 60 | 3,368 | ||||||
Spotify Technology SA* | 225 | 30,548 | ||||||
Ubisoft Entertainment SA* | 330 | 31,450 | ||||||
Viacom, Inc., Class B | 1,500 | 43,365 | ||||||
Vivendi SA | 2,340 | 67,843 | ||||||
Walt Disney Co. (The) | 6,975 | 955,366 | ||||||
1,131,940 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.2% | ||||||||
AvalonBay Communities, Inc. | 360 | 72,335 | ||||||
British Land Co. plc (The)(c) | 3,150 | 24,393 | ||||||
Cofinimmo SA | 60 | 7,666 | ||||||
Covivio | 105 | 11,355 | ||||||
Derwent London plc | 420 | 17,357 | ||||||
Dexus | 1,710 | 15,045 | ||||||
Equinix, Inc. | 165 | 75,025 | ||||||
Gecina SA | 15 | 2,237 | ||||||
GPT Group (The) | 3,150 | 12,704 | ||||||
Great Portland Estates plc | — | (e) | 4 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Hammerson plc | 3,135 | $ | 13,156 | |||||
HCP, Inc. | 390 | 11,614 | ||||||
Host Hotels & Resorts, Inc. | 2,685 | 51,659 | ||||||
ICADE | 135 | 11,529 | ||||||
Iron Mountain, Inc. | 1,155 | 37,514 | ||||||
Klepierre SA | 720 | 25,555 | ||||||
Land Securities Group plc | 3,210 | 38,625 | ||||||
Link REIT | 4,500 | 52,483 | ||||||
Mapletree Commercial Trust | 3,000 | 4,254 | ||||||
Merlin Properties Socimi SA | 2,175 | 29,616 | ||||||
Mirvac Group | 8,775 | 17,479 | ||||||
Prologis, Inc. | 1,110 | 85,104 | ||||||
Simon Property Group, Inc. | 615 | 106,825 | ||||||
Stockland | 765 | 2,030 | ||||||
Suntec REIT | 6,000 | 8,155 | ||||||
Ventas, Inc. | 540 | 32,999 | ||||||
Vicinity Centres | 12,345 | 22,070 | ||||||
Weyerhaeuser Co. | 2,640 | 70,752 | ||||||
859,540 | ||||||||
Food & Staples Retailing – 1.7% | ||||||||
Aeon Co. Ltd. | 3,000 | 55,340 | ||||||
Carrefour SA | 1,755 | 34,164 | ||||||
Casino Guichard Perrachon SA(c) | 150 | 6,136 | ||||||
Colruyt SA | 75 | 5,401 | ||||||
ICA Gruppen AB(c) | 135 | 4,878 | ||||||
J Sainsbury plc | 5,355 | 15,533 | ||||||
Jeronimo Martins SGPS SA | 645 | 10,496 | ||||||
Kesko OYJ, Class B | 165 | 8,561 | ||||||
Koninklijke Ahold Delhaize NV | 4,125 | 99,207 | ||||||
Kroger Co. (The) | 2,715 | 69,993 | ||||||
Lawson, Inc. | 700 | 32,619 | ||||||
Loblaw Cos. Ltd. | 705 | 34,396 | ||||||
Metro, Inc. | 255 | 9,194 | ||||||
Seven & i Holdings Co. Ltd. | 1,500 | 51,973 | ||||||
Sysco Corp. | 2,205 | 155,166 | ||||||
Tesco plc | 26,685 | 86,900 | ||||||
Walgreens Boots Alliance, Inc. | 2,415 | 129,371 | ||||||
Walmart, Inc. | 3,615 | 371,767 | ||||||
Woolworths Group Ltd. | 3,780 | 84,739 | ||||||
1,265,834 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 197 |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – 1.4% | ||||||||
AAK AB | 360 | $ | 5,841 | |||||
Archer-Daniels-Midland Co. | �� | 1,500 | 66,900 | |||||
Danone SA | 1,845 | 149,039 | ||||||
General Mills, Inc. | 2,040 | 104,999 | ||||||
Hershey Co. (The) | 480 | 59,928 | ||||||
Kellogg Co. | 720 | 43,416 | ||||||
Kerry Group plc, Class A | 285 | 31,876 | ||||||
Mondelez International, Inc., Class A | 2,445 | 124,328 | ||||||
Mowi ASA | 1,335 | 28,854 | ||||||
Nestle SA (Registered) | 3,420 | 329,078 | ||||||
Nichirei Corp. | 1,500 | 34,505 | ||||||
Salmar ASA | 105 | 4,760 | ||||||
Tate & Lyle plc | 1,110 | 11,107 | ||||||
Vitasoy International Holdings Ltd. | 2,000 | 10,070 | ||||||
1,004,701 | ||||||||
Gas Utilities – 0.1% | ||||||||
APA Group | 585 | 3,961 | ||||||
Italgas SpA | 315 | 1,963 | ||||||
Rubis SCA | 270 | 14,766 | ||||||
Tokyo Gas Co. Ltd. | 1,500 | 38,074 | ||||||
58,764 | ||||||||
Health Care Equipment & Supplies – 1.7% | ||||||||
Abbott Laboratories | 5,565 | 442,751 | ||||||
Ansell Ltd. | 1,005 | 19,099 | ||||||
Baxter International, Inc. | 1,185 | 90,415 | ||||||
Becton Dickinson and Co. | 720 | 173,333 | ||||||
Coloplast A/S, Class B | 255 | 27,492 | ||||||
Edwards Lifesciences Corp.* | 480 | 84,514 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 1,020 | 10,755 | ||||||
Getinge AB, Class B | 465 | 6,537 | ||||||
Hologic, Inc.* | 525 | 24,349 | ||||||
Koninklijke Philips NV | 2,115 | 89,988 | ||||||
Sartorius AG (Preference) | 165 | 30,178 | ||||||
Sonova Holding AG (Registered) | 225 | 45,375 | ||||||
Straumann Holding AG (Registered) | 45 | 36,327 | ||||||
Sysmex Corp. | 1,400 | 79,846 | ||||||
Varian Medical Systems, Inc.* | 195 | 26,553 |
Investments | Shares | Value | ||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Zimmer Biomet Holdings, Inc. | 510 | $ | 62,812 | |||||
1,250,324 | ||||||||
Health Care Providers & Services – 1.7% | ||||||||
Anthem, Inc. | 495 | 130,200 | ||||||
Cigna Corp. | 885 | 140,573 | ||||||
CVS Health Corp. | 3,450 | 187,611 | ||||||
DaVita, Inc.* | 150 | 8,286 | ||||||
Fresenius Medical Care AG & Co. KGaA | 285 | 23,942 | ||||||
Fresenius SE & Co. KGaA | 1,260 | 71,423 | ||||||
Healthscope Ltd. | 3,465 | 5,975 | ||||||
Humana, Inc. | 285 | 72,792 | ||||||
Laboratory Corp. of America Holdings* | 105 | 16,792 | ||||||
McKesson Corp. | 360 | 42,930 | ||||||
NMC Health plc | 210 | 7,726 | ||||||
Orpea | 105 | 12,791 | ||||||
Ramsay Health Care Ltd. | 225 | 10,344 | ||||||
Ryman Healthcare Ltd. | 300 | 2,431 | ||||||
Sonic Healthcare Ltd. | 1,965 | 35,476 | ||||||
UnitedHealth Group, Inc. | 2,145 | 499,935 | ||||||
1,269,227 | ||||||||
Health Care Technology – 0.0%(a) | ||||||||
Veeva Systems, Inc., Class A* | 135 | 18,882 | ||||||
Hotels, Restaurants & Leisure – 2.7% | ||||||||
Accor SA | 900 | 37,884 | ||||||
Aristocrat Leisure Ltd. | 720 | 13,217 | ||||||
Carnival Corp. | 1,485 | 81,467 | ||||||
Carnival plc | 120 | 6,312 | ||||||
Compass Group plc | 4,200 | 95,435 | ||||||
Darden Restaurants, Inc. | 165 | 19,404 | ||||||
Domino’s Pizza Enterprises Ltd.(c) | 225 | 6,810 | ||||||
Flight Centre Travel Group Ltd.(c) | 180 | 4,865 | ||||||
Genting Singapore Ltd. | 10,500 | 7,598 | ||||||
GVC Holdings plc | 1,065 | 9,063 | ||||||
Hilton Worldwide Holdings, Inc. | 780 | 67,852 | ||||||
InterContinental Hotels Group plc | 456 | 29,533 | ||||||
Kindred Group plc, SDR | 1,005 | 8,753 | ||||||
Las Vegas Sands Corp. | 795 | 53,305 | ||||||
Marriott International, Inc., Class A | 1,080 | 147,333 | ||||||
McDonald’s Corp. | 2,910 | 574,929 |
See Accompanying Notes to the Financial Statements.
198 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Merlin Entertainments plc(b) | 4,005 | $ | 19,120 | |||||
MGM Resorts International | 1,140 | 30,358 | ||||||
Oriental Land Co. Ltd. | 900 | 99,151 | ||||||
Royal Caribbean Cruises Ltd. | 450 | 54,423 | ||||||
Sands China Ltd. | 6,000 | 32,962 | ||||||
Shangri-La Asia Ltd. | 2,000 | 2,835 | ||||||
Sodexo SA | 285 | 32,659 | ||||||
SSP Group plc | 1,085 | 9,845 | ||||||
Starbucks Corp. | 5,610 | 435,785 | ||||||
Tabcorp Holdings Ltd. | 4,230 | 14,261 | ||||||
Whitbread plc(c) | 735 | 42,735 | ||||||
Yum! Brands, Inc. | 810 | 84,556 | ||||||
2,022,450 | ||||||||
Household Durables – 0.7% | ||||||||
Barratt Developments plc | 2,910 | 22,830 | ||||||
Berkeley Group Holdings plc | 435 | 21,300 | ||||||
Husqvarna AB, Class B(c) | 1,695 | 15,451 | ||||||
Lennar Corp., Class A | 375 | 19,511 | ||||||
Panasonic Corp. | 3,000 | 27,502 | ||||||
Persimmon plc | 855 | 24,923 | ||||||
SEB SA | 90 | 16,461 | ||||||
Sekisui House Ltd. | 3,000 | 48,269 | ||||||
Sony Corp. | 6,000 | 280,781 | ||||||
Taylor Wimpey plc | 7,845 | 18,552 | ||||||
Techtronic Industries Co. Ltd. | 2,000 | 14,454 | ||||||
510,034 | ||||||||
Household Products – 1.6% | ||||||||
Church & Dwight Co., Inc. | 480 | 35,976 | ||||||
Clorox Co. (The) | 240 | 38,335 | ||||||
Colgate-Palmolive Co. | 1,755 | 127,747 | ||||||
Essity AB, Class B | 1,815 | 53,800 | ||||||
Henkel AG & Co. KGaA (Preference) | 405 | 40,958 | ||||||
Kimberly-Clark Corp. | 600 | 77,028 | ||||||
Procter & Gamble Co. (The) | 5,910 | 629,297 | ||||||
Reckitt Benckiser Group plc | 1,890 | 152,688 | ||||||
1,155,829 | ||||||||
Independent Power and Renewable Electricity Producers – 0.0%(a) | ||||||||
AES Corp. | 225 | 3,852 |
Investments | Shares | Value | ||||||
Industrial Conglomerates – 0.8% | ||||||||
3M Co. | 1,035 | $ | 196,143 | |||||
CK Hutchison Holdings Ltd. | 7,500 | 78,772 | ||||||
General Electric Co. | 10,560 | 107,395 | ||||||
Hopewell Holdings Ltd.(f) | 1,000 | 4,920 | ||||||
Keppel Corp. Ltd. | 1,500 | 7,461 | ||||||
Rheinmetall AG | 120 | 13,758 | ||||||
Siemens AG (Registered) | 1,665 | 199,173 | ||||||
Smiths Group plc | 210 | 4,168 | ||||||
611,790 | ||||||||
Insurance – 3.4% | ||||||||
Admiral Group plc | 435 | 12,499 | ||||||
Aegon NV | 2,760 | 14,402 | ||||||
Aflac, Inc. | 2,310 | 116,378 | ||||||
AIA Group Ltd. | 24,000 | 244,576 | ||||||
Allstate Corp. (The) | 1,080 | 106,985 | ||||||
American International Group, Inc. | 1,950 | 92,761 | ||||||
Aon plc | 720 | 129,701 | ||||||
ASR Nederland NV | 105 | 4,660 | ||||||
Assicurazioni Generali SpA | 3,975 | 77,068 | ||||||
Aviva plc | 14,610 | 81,804 | ||||||
AXA SA | 5,790 | 154,078 | ||||||
CNP Assurances(c) | 690 | 16,270 | ||||||
Direct Line Insurance Group plc | 4,305 | 18,487 | ||||||
Hartford Financial Services Group, Inc. (The) | 1,275 | 66,695 | ||||||
Hiscox Ltd. | 315 | 6,874 | ||||||
Insurance Australia Group Ltd. | 7,290 | 40,433 | ||||||
Legal & General Group plc | 20,055 | 72,735 | ||||||
Lincoln National Corp. | 285 | 19,015 | ||||||
Manulife Financial Corp. | 2,895 | 53,092 | ||||||
Mapfre SA | 1,950 | 5,846 | ||||||
Marsh & McLennan Cos., Inc. | 930 | 87,690 | ||||||
Medibank Pvt Ltd. | 6,615 | 13,316 | ||||||
MetLife, Inc. | 1,650 | 76,114 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)* | 330 | 82,472 | ||||||
Phoenix Group Holdings plc | 1,755 | 16,530 | ||||||
Poste Italiane SpA(b) | 1,890 | 20,143 | ||||||
Power Corp. of Canada | 330 | 7,541 | ||||||
Powszechny Zaklad Ubezpieczen SA | 1,425 | 15,634 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 199 |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Principal Financial Group, Inc. | 585 | $ | 33,439 | |||||
Progressive Corp. (The) | 1,545 | 120,742 | ||||||
Prudential Financial, Inc. | 720 | 76,111 | ||||||
Prudential plc | 7,275 | 164,548 | ||||||
RSA Insurance Group plc | 1,950 | 13,778 | ||||||
Sampo OYJ, Class A | 750 | 34,260 | ||||||
Storebrand ASA | 3,465 | 29,171 | ||||||
Suncorp Group Ltd. | 570 | 5,324 | ||||||
Swiss Life Holding AG (Registered)* | 120 | 56,420 | ||||||
Swiss Re AG | 930 | 89,495 | ||||||
Travelers Cos., Inc. (The) | 405 | 58,219 | ||||||
Tryg A/S | 255 | 7,786 | ||||||
Unum Group | 285 | 10,522 | ||||||
Zurich Insurance Group AG | 480 | 153,044 | ||||||
2,506,658 | ||||||||
Interactive Media & Services – 1.6% | ||||||||
Alphabet, Inc., Class C* | 975 | 1,158,768 | ||||||
carsales.com Ltd. | 660 | 6,253 | ||||||
Scout24 AG(b) | 75 | 3,858 | ||||||
Yahoo Japan Corp. | 19,500 | 51,825 | ||||||
1,220,704 | ||||||||
Internet & Direct Marketing Retail – 4.3% | ||||||||
Amazon.com, Inc.* | 1,590 | 3,063,167 | ||||||
eBay, Inc. | 2,985 | 115,669 | ||||||
Zalando SE* (b) | 30 | 1,410 | ||||||
3,180,246 | ||||||||
IT Services – 3.3% | ||||||||
Accenture plc, Class A | 2,280 | 416,488 | ||||||
Akamai Technologies, Inc.* | 360 | 28,822 | ||||||
Alliance Data Systems Corp. | 60 | 9,606 | ||||||
Alten SA | 45 | 4,907 | ||||||
Altran Technologies SA | 420 | 5,462 | ||||||
Amadeus IT Group SA | 1,005 | 79,877 | ||||||
Amdocs Ltd. | 285 | 15,698 | ||||||
Atos SE(c) | 270 | 27,772 | ||||||
Capgemini SE | 390 | 47,247 | ||||||
CGI, Inc.* | 315 | 22,581 | ||||||
Cognizant Technology Solutions Corp., Class A | 645 | 47,059 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
Computershare Ltd. | 540 | $ | 6,777 | |||||
DXC Technology Co. | 405 | 26,625 | ||||||
Fujitsu Ltd. | 1,500 | 109,562 | ||||||
International Business Machines Corp. | 3,000 | 420,810 | ||||||
Link Administration Holdings Ltd. | 390 | 2,086 | ||||||
Mastercard, Inc., Class A | 3,360 | 854,246 | ||||||
PayPal Holdings, Inc.* | 2,580 | 290,947 | ||||||
Sopra Steria Group | 30 | 3,826 | ||||||
Wirecard AG | 225 | 33,713 | ||||||
2,454,111 | ||||||||
Leisure Products – 0.1% | ||||||||
Hasbro, Inc. | 465 | 47,365 | ||||||
Yamaha Corp. | 900 | 46,465 | ||||||
93,830 | ||||||||
Life Sciences Tools & Services – 0.6% | ||||||||
Eurofins Scientific SE | 30 | 13,717 | ||||||
Evotec SE* | 270 | 6,681 | ||||||
Lonza Group AG (Registered)* | 105 | 32,427 | ||||||
Mettler-Toledo International, Inc.* | 45 | 33,537 | ||||||
Thermo Fisher Scientific, Inc. | 1,125 | 312,131 | ||||||
Waters Corp.* | 60 | 12,813 | ||||||
Wuxi Biologics Cayman, Inc.* (b) | 500 | 5,029 | ||||||
416,335 | ||||||||
Machinery – 1.2% | ||||||||
Alfa Laval AB | 1,035 | 23,995 | ||||||
Alstom SA | 450 | 19,769 | ||||||
Atlas Copco AB, Class A(c) | 1,770 | 54,961 | ||||||
CNH Industrial NV | 2,820 | 30,555 | ||||||
Cummins, Inc. | 405 | 67,347 | ||||||
Deere & Co. | 600 | 99,378 | ||||||
Dover Corp. | 315 | 30,883 | ||||||
GEA Group AG | 390 | 10,892 | ||||||
IMI plc | 810 | 11,093 | ||||||
Ingersoll-Rand plc | 135 | 16,552 | ||||||
KION Group AG | 195 | 13,339 | ||||||
Komatsu Ltd. | 3,000 | 76,822 | ||||||
Kone OYJ, Class B | 1,125 | 61,602 | ||||||
Konecranes OYJ | 225 | 9,360 | ||||||
Metso OYJ | 240 | 8,932 |
See Accompanying Notes to the Financial Statements.
200 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
PACCAR, Inc. | 660 | $ | 47,302 | |||||
Rotork plc | 3,180 | 12,930 | ||||||
Sandvik AB(c) | 3,495 | 64,574 | ||||||
Schindler Holding AG | 150 | 32,355 | ||||||
SKF AB, Class B(c) | 1,140 | 21,075 | ||||||
Spirax-Sarco Engineering plc | 90 | 9,680 | ||||||
Stanley Black & Decker, Inc. | 330 | 48,378 | ||||||
Trelleborg AB, Class B | 1,230 | 20,313 | ||||||
Valmet OYJ | 240 | 6,590 | ||||||
Volvo AB, Class B | 2,295 | 36,694 | ||||||
Wartsila OYJ Abp | 1,065 | 16,972 | ||||||
Xylem, Inc. | 525 | 43,785 | ||||||
896,128 | ||||||||
Marine – 0.1% | ||||||||
AP Moller – Maersk A/S, Class B | 15 | 19,527 | ||||||
Kuehne + Nagel International AG (Registered) | 135 | 19,614 | ||||||
�� | 39,141 | |||||||
Media – 1.3% | ||||||||
Comcast Corp., Class A | 17,010 | 740,445 | ||||||
Eutelsat Communications SA(c) | 510 | 9,197 | ||||||
Informa plc | 3,255 | 33,056 | ||||||
ITV plc | 6,675 | 11,891 | ||||||
JCDecaux SA | 75 | 2,454 | ||||||
Lagardere SCA | 585 | 15,905 | ||||||
Pearson plc | 3,465 | 37,502 | ||||||
Publicis Groupe SA | 450 | 26,668 | ||||||
Schibsted ASA, Class A | 90 | 2,356 | ||||||
SES SA, FDR(c) | 1,200 | 20,401 | ||||||
Shaw Communications, Inc., Class B | 195 | 3,933 | ||||||
Singapore Press Holdings Ltd. | 13,500 | 24,894 | ||||||
Telenet Group Holding NV | 195 | 10,341 | ||||||
WPP plc | 240 | 2,992 | ||||||
942,035 | ||||||||
Metals & Mining – 1.5% | ||||||||
Agnico Eagle Mines Ltd. | 360 | 14,848 | ||||||
Alumina Ltd. | 7,170 | 11,304 | ||||||
ArcelorMittal(c) | 660 | 14,296 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Aurubis AG | 180 | $ | 8,759 | |||||
BHP Group Ltd. | 10,230 | 269,294 | ||||||
BHP Group plc | 6,825 | 160,990 | ||||||
BlueScope Steel Ltd. | 2,490 | 23,572 | ||||||
Boliden AB* | 720 | 21,357 | ||||||
Evraz plc | 750 | 6,136 | ||||||
Glencore plc* | 27,375 | 108,615 | ||||||
Iluka Resources Ltd. | 1,215 | 7,389 | ||||||
Newmont Goldcorp Corp. | 1,650 | 51,249 | ||||||
Newmont Goldcorp Corp.* | 364 | 11,205 | ||||||
Norsk Hydro ASA | 210 | 898 | ||||||
Northern Star Resources Ltd. | 1,350 | 7,782 | ||||||
OZ Minerals Ltd. | 2,175 | 15,248 | ||||||
Rio Tinto Ltd. | 1,230 | 82,565 | ||||||
Rio Tinto plc | 3,540 | 206,056 | ||||||
South32 Ltd. | 20,145 | 47,358 | ||||||
Sumitomo Metal Mining Co. Ltd. | 1,500 | 46,855 | ||||||
Teck Resources Ltd., Class B | 405 | 9,538 | ||||||
1,125,314 | ||||||||
Multiline Retail – 0.7% | ||||||||
Dollar General Corp. | 885 | 111,590 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 1,500 | 14,262 | ||||||
Kohl’s Corp. | 450 | 31,995 | ||||||
Marui Group Co. Ltd.(c) | 1,500 | 30,397 | ||||||
Next plc | 390 | 29,316 | ||||||
Target Corp. | 1,890 | 146,324 | ||||||
Wesfarmers Ltd. | 4,770 | 120,899 | ||||||
484,783 | ||||||||
Multi-Utilities – 0.5% | ||||||||
A2A SpA | 8,250 | 13,776 | ||||||
AGL Energy Ltd. | 2,040 | 31,919 | ||||||
DTE Energy Co. | 60 | 7,543 | ||||||
Engie SA | 3,615 | 53,498 | ||||||
Hera SpA | 3,465 | 12,325 | ||||||
National Grid plc | 7,905 | 86,163 | ||||||
NiSource, Inc. | 285 | 7,917 | ||||||
Sempra Energy | 645 | 82,528 | ||||||
Suez | 1,005 | 14,107 | ||||||
Veolia Environnement SA | 1,800 | 42,484 | ||||||
WEC Energy Group, Inc. | 135 | 10,588 | ||||||
362,848 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 201 |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – 2.7% | ||||||||
Aker BP ASA | 240 | $ | 7,896 | |||||
Caltex Australia Ltd. | 585 | 11,204 | ||||||
Canadian Natural Resources Ltd. | 3,105 | 92,836 | ||||||
Cenovus Energy, Inc. | 960 | 9,477 | ||||||
ConocoPhillips | 2,460 | 155,275 | ||||||
Devon Energy Corp. | 1,350 | 43,389 | ||||||
Enagas SA | 510 | 14,518 | ||||||
Eni SpA | 7,590 | 129,446 | ||||||
EOG Resources, Inc. | 1,305 | 125,345 | ||||||
Equinor ASA | 3,600 | 80,118 | ||||||
Galp Energia SGPS SA | 705 | 11,828 | ||||||
Hess Corp. | 585 | 37,510 | ||||||
JXTG Holdings, Inc. | 13,500 | 65,539 | ||||||
Koninklijke Vopak NV | 285 | 12,696 | ||||||
Lundin Petroleum AB | 285 | 9,317 | ||||||
Neste OYJ | 1,170 | 38,602 | ||||||
Oil Search Ltd. | 6,075 | 33,266 | ||||||
OMV AG | 420 | 22,476 | ||||||
ONEOK, Inc. | 705 | 47,891 | ||||||
Pembina Pipeline Corp. | 255 | 9,080 | ||||||
Polski Koncern Naftowy ORLEN SA | 645 | 16,499 | ||||||
Royal Dutch Shell plc, Class A | 13,770 | 439,505 | ||||||
Santos Ltd. | 1,545 | 7,819 | ||||||
Snam SpA | 6,825 | 34,703 | ||||||
TOTAL SA | 6,837 | 379,625 | ||||||
TransCanada Corp. | 1,170 | 55,612 | ||||||
Woodside Petroleum Ltd. | 3,240 | 80,706 | ||||||
1,972,178 | ||||||||
Paper & Forest Products – 0.1% | ||||||||
Stora Enso OYJ, Class R | 1,410 | 17,484 | ||||||
Svenska Cellulosa AB SCA, Class B(c) | 2,265 | 19,732 | ||||||
UPM-Kymmene OYJ | 915 | 25,749 | ||||||
62,965 | ||||||||
Personal Products – 1.5% | ||||||||
Beiersdorf AG | 255 | 27,846 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 690 | 118,549 | ||||||
L’Oreal SA(c) | 675 | 185,412 | ||||||
Shiseido Co. Ltd. | 3,000 | 234,828 |
Investments | Shares | Value | ||||||
Personal Products – (continued) | ||||||||
Unilever NV, CVA(c) | 4,965 | $ | 300,248 | |||||
Unilever plc | 3,615 | 219,494 | ||||||
1,086,377 | ||||||||
Pharmaceuticals – 5.2% | ||||||||
Allergan plc | 540 | 79,380 | ||||||
Astellas Pharma, Inc. | 12,000 | 162,586 | ||||||
AstraZeneca plc | 3,960 | 295,602 | ||||||
Bayer AG (Registered) | 1,545 | 102,746 | ||||||
Bristol-Myers Squibb Co. | 2,355 | 109,343 | ||||||
Eisai Co. Ltd. | 1,500 | 86,923 | ||||||
Eli Lilly & Co. | 1,571 | 183,870 | ||||||
GlaxoSmithKline plc | 10,080 | 206,757 | ||||||
Hikma Pharmaceuticals plc | 195 | 4,488 | ||||||
Ipsen SA | 75 | 8,750 | ||||||
Merck & Co., Inc. | 7,635 | 600,951 | ||||||
Merck KGaA | 375 | 39,874 | ||||||
Novo Nordisk A/S, Class B | 5,025 | 245,530 | ||||||
Orion OYJ, Class B | 405 | 13,449 | ||||||
Otsuka Holdings Co. Ltd. | 3,000 | 106,909 | ||||||
Pfizer, Inc. | 9,660 | 392,293 | ||||||
Recordati SpA | 105 | 4,235 | ||||||
Roche Holding AG | 1,890 | 498,188 | ||||||
Sanofi | 3,060 | 265,740 | ||||||
Shionogi & Co. Ltd. | 2,000 | 116,292 | ||||||
Takeda Pharmaceutical Co. Ltd. | 7,567 | 279,376 | ||||||
Vifor Pharma AG | 165 | 21,568 | ||||||
3,824,850 | ||||||||
Professional Services – 0.4% | ||||||||
Adecco Group AG (Registered) | 30 | 1,723 | ||||||
Bureau Veritas SA | 1,065 | 26,950 | ||||||
Capita plc* | 4,395 | 7,302 | ||||||
DKSH Holding AG | 90 | 5,525 | ||||||
RELX plc | 5,400 | 123,829 | ||||||
SEEK Ltd. | 555 | 7,113 | ||||||
Teleperformance* | 195 | 37,435 | ||||||
Thomson Reuters Corp.(c) | 135 | 8,309 | ||||||
Wolters Kluwer NV | 990 | 68,988 | ||||||
287,174 | ||||||||
Real Estate Management & Development – 0.6% | ||||||||
Aroundtown SA | 1,305 | 10,568 | ||||||
CapitaLand Ltd. | 7,500 | 19,450 |
See Accompanying Notes to the Financial Statements.
202 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Castellum AB | 840 | $ | 15,087 | |||||
CBRE Group, Inc., Class A* | 960 | 49,987 | ||||||
CK Asset Holdings Ltd. | 7,500 | 60,227 | ||||||
Fabege AB | 930 | 12,898 | ||||||
Hulic Co. Ltd. | 3,000 | 25,805 | ||||||
Hysan Development Co. Ltd. | 1,000 | 5,596 | ||||||
LEG Immobilien AG | 60 | 6,976 | ||||||
Mitsubishi Estate Co. Ltd. | 6,000 | 101,037 | ||||||
Mitsui Fudosan Co. Ltd. | 4,500 | 103,717 | ||||||
New World Development Co. Ltd. | 15,000 | 24,817 | ||||||
Swire Pacific Ltd., Class A | 1,000 | 12,657 | ||||||
Swire Properties Ltd. | 3,000 | 12,179 | ||||||
461,001 | ||||||||
Road & Rail – 0.9% | ||||||||
Aurizon Holdings Ltd. | 5,730 | 19,198 | ||||||
Canadian National Railway Co. | 1,815 | 167,900 | ||||||
Canadian Pacific Railway Ltd. | 270 | 60,248 | ||||||
ComfortDelGro Corp. Ltd. | 4,500 | 8,893 | ||||||
CSX Corp. | 1,035 | 82,417 | ||||||
DSV A/S | 495 | 45,698 | ||||||
MTR Corp. Ltd. | 2,500 | 14,881 | ||||||
Norfolk Southern Corp. | 345 | 70,387 | ||||||
Union Pacific Corp. | 1,080 | 191,203 | ||||||
660,825 | ||||||||
Semiconductors & Semiconductor Equipment – 2.7% | ||||||||
Advanced Micro Devices, Inc.* | 345 | 9,532 | ||||||
ams AG* | 195 | 8,227 | ||||||
ASML Holding NV | 1,020 | 212,093 | ||||||
Infineon Technologies AG | 1,380 | 32,517 | ||||||
Intel Corp. | 14,520 | 741,101 | ||||||
Lam Research Corp. | 285 | 59,118 | ||||||
Microchip Technology, Inc. | 645 | 64,429 | ||||||
NVIDIA Corp. | 915 | 165,615 | ||||||
ON Semiconductor Corp.* | 1,275 | 29,401 | ||||||
QUALCOMM, Inc. | 3,300 | 284,229 | ||||||
STMicroelectronics NV | 975 | 17,898 | ||||||
Texas Instruments, Inc. | 2,895 | 341,118 | ||||||
1,965,278 |
Investments | Shares | Value | ||||||
Software – 8.0% | ||||||||
Adobe, Inc.* | 1,185 | $ | 342,761 | |||||
Altium Ltd. | 225 | 5,353 | ||||||
Autodesk, Inc.* | 645 | 114,946 | ||||||
Dassault Systemes SE | 392 | 61,965 | ||||||
Intuit, Inc. | 780 | 195,827 | ||||||
Micro Focus International plc | 622 | 15,718 | ||||||
Microsoft Corp. | 29,700 | 3,878,820 | ||||||
Oracle Corp. | 9,945 | 550,257 | ||||||
salesforce.com, Inc.* | 2,175 | 359,636 | ||||||
SAP SE | 1,980 | 254,251 | ||||||
SimCorp A/S | 315 | 30,854 | ||||||
Splunk, Inc.* | 375 | 51,765 | ||||||
Symantec Corp. | 1,800 | 43,578 | ||||||
Temenos AG (Registered)* | 90 | 14,962 | ||||||
Xero Ltd.* | 120 | 4,599 | ||||||
5,925,292 | ||||||||
Specialty Retail – 1.4% | ||||||||
AutoZone, Inc.* | 45 | 46,274 | ||||||
Best Buy Co., Inc. | 810 | 60,272 | ||||||
Burlington Stores, Inc.* | 255 | 43,072 | ||||||
Fast Retailing Co. Ltd. | 300 | 173,091 | ||||||
Gap, Inc. (The) | 1,500 | 39,120 | ||||||
Hennes & Mauritz AB, Class B | 1,980 | 34,486 | ||||||
Industria de Diseno Textil SA | 1,590 | 48,058 | ||||||
JBHi-Fi Ltd. | 690 | 12,515 | ||||||
Kingfisher plc | 8,070 | 27,785 | ||||||
Lowe’s Cos., Inc. | 2,610 | 295,295 | ||||||
TJX Cos., Inc. (The) | 4,305 | 236,258 | ||||||
WH Smith plc | 150 | 4,005 | ||||||
1,020,231 | ||||||||
Technology Hardware, Storage & Peripherals – 5.8% | ||||||||
Apple, Inc. | 19,755 | 3,964,236 | ||||||
Hewlett Packard Enterprise Co. | 5,310 | 83,951 | ||||||
HP, Inc. | 4,620 | 92,169 | ||||||
Logitech International SA (Registered) | 150 | 5,864 | ||||||
NEC Corp. | 1,500 | 50,438 | ||||||
NetApp, Inc. | 360 | 26,226 | ||||||
Ricoh Co. Ltd. | 4,500 | 45,374 | ||||||
4,268,258 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 203 |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – 1.2% | ||||||||
adidas AG | 465 | $ | 119,390 | |||||
Burberry Group plc | 1,425 | 37,470 | ||||||
Cie Financiere Richemont SA (Registered) | 945 | 69,090 | ||||||
EssilorLuxottica SA – IM* | 282 | 34,306 | ||||||
EssilorLuxottica SA – MO* (c) | 468 | 56,907 | ||||||
Hermes International | 45 | 31,630 | ||||||
HUGO BOSS AG | 210 | 14,629 | ||||||
Kering SA | 225 | 132,887 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 705 | 275,782 | ||||||
Moncler SpA | 450 | 18,443 | ||||||
Pandora A/S | 315 | 13,202 | ||||||
Shenzhou International Group Holdings Ltd. | 1,000 | 13,422 | ||||||
Tapestry, Inc. | 270 | 8,713 | ||||||
VF Corp. | 855 | 80,720 | ||||||
906,591 | ||||||||
Thrifts & Mortgage Finance – 0.0%(a) | ||||||||
Aareal Bank AG | 405 | 14,120 | ||||||
Tobacco – 1.2% | ||||||||
Altria Group, Inc. | 3,390 | 184,179 | ||||||
British American Tobacco plc | 3,015 | 117,522 | ||||||
Imperial Brands plc | 2,370 | 75,264 | ||||||
Japan Tobacco, Inc. | 6,000 | 138,774 | ||||||
Philip Morris International, Inc. | 4,575 | 396,012 | ||||||
911,751 | ||||||||
Trading Companies & Distributors – 0.7% | ||||||||
Brenntag AG | 330 | 17,774 | ||||||
Bunzl plc | 1,380 | 41,540 | ||||||
Fastenal Co. | 450 | 31,748 | ||||||
Ferguson plc | 615 | 43,615 | ||||||
ITOCHU Corp. | 6,000 | 107,744 | ||||||
Marubeni Corp. | 7,500 | 53,542 | ||||||
Mitsui & Co. Ltd. | 7,500 | 120,808 | ||||||
Rexel SA | 135 | 1,813 | ||||||
Sojitz Corp.(c) | 7,500 | 25,791 | ||||||
Sumitomo Corp. | 1,500 | 21,407 | ||||||
Toyota Tsusho Corp. | 1,500 | 49,562 |
Investments | Shares | Value | ||||||
Trading Companies & Distributors – (continued) | ||||||||
Travis Perkins plc | 570 | $ | 10,385 | |||||
WW Grainger, Inc. | 60 | 16,920 | ||||||
542,649 | ||||||||
Transportation Infrastructure – 0.2% | ||||||||
Aeroports de Paris | 165 | 33,581 | ||||||
Atlas Arteria Ltd. | 810 | 3,991 | ||||||
Auckland International Airport Ltd. | 3,930 | 20,889 | ||||||
Flughafen Zurich AG (Registered) | 75 | 12,350 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 135 | 11,172 | ||||||
Getlink SE | 1,515 | 24,364 | ||||||
Transurban Group | 7,875 | 74,495 | ||||||
180,842 | ||||||||
Water Utilities – 0.1% | ||||||||
American Water Works Co., Inc. | 405 | 43,817 | ||||||
Severn Trent plc | 1,020 | 27,073 | ||||||
United Utilities Group plc | 1,230 | 13,290 | ||||||
84,180 | ||||||||
Wireless Telecommunication Services – 1.0% | ||||||||
KDDI Corp. | 6,000 | 136,862 | ||||||
NTT DOCOMO, Inc. | 4,500 | 97,394 | ||||||
Rogers Communications, Inc., Class B | 570 | 28,580 | ||||||
SoftBank Group Corp. | 3,000 | 311,246 | ||||||
Tele2 AB, Class B | 1,185 | 15,793 | ||||||
Vodafone Group plc | 70,920 | 131,286 | ||||||
721,161 | ||||||||
Total Common Stocks (Cost $65,535,390) |
| 73,158,027 |
See Accompanying Notes to the Financial Statements.
204 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(g) – 1.2% | ||||||||
REPURCHASE AGREEMENTS – 1.2% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $879,336, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $896,925 (Cost $879,269) | $ | 879,269 | $ | 879,269 | ||||
Total Investments – 100.0% (Cost $66,414,659) |
| 74,037,296 | ||||||
Liabilities in excess of other assets – 0.0%(a) |
| (3,336 | ) | |||||
NET ASSETS – 100.0% |
| $ | 74,033,960 |
* | Non-income producing security. |
(a) | Represents less than 0.05% of net assets. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $1,374,431, collateralized in the form of cash with a value of $879,269 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $121,463 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 5.38%, and maturity dates ranging from May 15, 2019 – May 15, 2048 and $459,430 of collateral in the form of Foreign Government Fixed |
Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from October 7, 2019 – November 2, 2086; a total value of $1,460,162. |
(d) | Investment in affiliated company. Northern Trust Investments, Inc., the Investment Adviser of the Fund, is a subsidiary of Northern Trust Corporation. |
(e) | Amount represents less than one share. |
(f) | Security fair valued as of April 30, 2019 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2019 amounted to $4,920, which represents approximately 0.01% of net assets of the Fund. |
(g) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $879,269. |
Percentages shown are based on Net Assets.
Abbreviations
CVA – Dutch Certification
DI – Depositary Interest
FDR – Fiduciary Depositary Receipt
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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 8,950,102 | ||
Aggregate gross unrealized depreciation | (1,302,240 | ) | ||
Net unrealized appreciation | $ | 7,647,862 | ||
Federal income tax cost | $ | 66,421,568 |
Investment in a company which was affiliated for the period ended April 30, 2019, was as follows:
Security | Value October 31, 2018 | Purchases at Cost | Sales Proceeds | Shares April 30, 2019 | Value April 30, 2019 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain/(Loss) | ||||||||||||||||||||||||
Northern Trust Corp. | $ | — | $ | 31,320 | $ | — | 330 | $ | 32,521 | $ | 1,201 | $ | — | $ | — |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 205 |
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Futures Contracts
FlexShares® STOXX® Global ESG Impact Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI EAFEE-Mini Index | 3 | 06/21/2019 | USD | $ | 287,550 | $ | 7,927 | |||||||||||||
S&P 500E-Mini Index | 4 | 06/21/2019 | USD | 589,700 | 24,207 | |||||||||||||||
$ | 32,134 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
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, 2019:
Australia | 3.4 | % | ||
Austria | 0.1 | |||
Belgium | 0.3 | |||
Canada | 1.9 | |||
Denmark | 0.7 | |||
Finland | 0.5 | |||
France | 4.8 | |||
Germany | 2.5 | |||
Hong Kong | 1.1 | |||
Ireland | 0.2 | |||
Italy | 1.3 | |||
Japan | 8.4 | |||
Luxembourg | 0.0 | † | ||
Netherlands | 1.8 | |||
New Zealand | 0.1 | |||
Norway | 0.4 | |||
Poland | 0.1 | |||
Portugal | 0.1 | |||
Singapore | 0.4 | |||
Spain | 1.0 | |||
Sweden | 1.2 | |||
Switzerland | 2.6 | |||
United Kingdom | 6.8 | |||
United States | 59.1 | |||
Other1 | 1.2 | |||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
206 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Morningstar Global Upstream Natural Resources Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.3% | ||||||||
Building Products – 0.1% | ||||||||
Universal Forest Products, Inc. | 213,776 | $ | 7,899,023 | |||||
Chemicals – 13.7% | ||||||||
CF Industries Holdings, Inc. | 1,875,712 | 83,994,383 | ||||||
FMC Corp. | 1,220,592 | 96,500,004 | ||||||
Incitec Pivot Ltd. | 13,119,640 | 31,119,450 | ||||||
Israel Chemicals Ltd. | 5,571,968 | 29,476,809 | ||||||
K+S AG (Registered) | 1,558,496 | 31,578,645 | ||||||
Mosaic Co. (The) | 3,013,552 | 78,683,843 | ||||||
Nutrien Ltd. | 4,882,368 | 263,717,558 | ||||||
Sasol Ltd. | 575,816 | 19,057,908 | ||||||
Scotts Miracle-Gro Co. (The)(a) | 310,320 | 26,383,407 | ||||||
Sirius Minerals plc* (a) | 38,972,744 | 8,850,547 | ||||||
UPL Ltd. | 2,875,632 | 40,068,562 | ||||||
Yara International ASA(a) | 1,437,816 | 64,695,485 | ||||||
774,126,601 | ||||||||
Diversified Financial Services – 0.1% | ||||||||
Metro Pacific Investments Corp. | 44,824,000 | 3,930,836 | ||||||
Equity Real Estate Investment Trusts (REITs) – 1.5% | ||||||||
Rayonier, Inc. | 441,344 | 14,030,326 | ||||||
Weyerhaeuser Co.(a) | 2,561,864 | 68,657,955 | ||||||
82,688,281 | ||||||||
Food Products – 15.2% | ||||||||
a2 Milk Co. Ltd.* (a) | 5,696,096 | 63,704,637 | ||||||
Archer-Daniels-Midland Co. | 4,492,744 | 200,376,382 | ||||||
Austevoll Seafood ASA | 679,256 | 7,878,505 | ||||||
Bunge Ltd.(a) | 1,165,424 | 61,079,872 | ||||||
Charoen Pokphand Foods PCL, NVDR | 32,411,200 | 27,665,002 | ||||||
Charoen Pokphand Indonesia Tbk. PT | 58,271,200 | 21,570,567 | ||||||
CJ CheilJedang Corp. | 68,960 | 18,595,557 | ||||||
Costa Group Holdings Ltd.(a) | 2,658,408 | 10,609,253 | ||||||
GrainCorp Ltd., Class A | 1,882,608 | 11,925,662 | ||||||
IOI Corp. Bhd. | 19,308,800 | 21,062,447 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Kuala Lumpur Kepong Bhd. | 3,448,000 | $ | 20,632,125 | |||||
Maruha Nichiro Corp. | 344,800 | 10,897,383 | ||||||
Mowi ASA | 3,354,904 | 72,510,154 | ||||||
PPB Group Bhd. | 4,137,600 | 18,774,066 | ||||||
Salmar ASA | 410,312 | 18,599,862 | ||||||
Sime Darby Plantation Bhd. | 21,722,400 | 27,110,312 | ||||||
Tyson Foods, Inc., Class A | 2,275,680 | 170,698,757 | ||||||
Wilmar International Ltd. | 28,618,400 | 76,528,780 | ||||||
860,219,323 | ||||||||
Metals & Mining – 28.7% | ||||||||
Agnico Eagle Mines Ltd. | 796,488 | 32,849,516 | ||||||
Alcoa Corp.* (a) | 648,224 | 17,294,616 | ||||||
Alumina Ltd. | 7,789,032 | 12,280,374 | ||||||
Anglo American plc(a) | 4,651,352 | 120,146,842 | ||||||
AngloGold Ashanti Ltd. | 1,468,848 | 17,654,352 | ||||||
Barrick Gold Corp.(a) | 5,896,080 | 74,643,356 | ||||||
BHP Group Ltd. | 9,819,904 | 258,499,044 | ||||||
Boliden AB* | 913,720 | 27,103,656 | ||||||
First Quantum Minerals Ltd. | 2,361,880 | 24,844,337 | ||||||
Fortescue Metals Group Ltd.(a) | 5,289,232 | 26,618,204 | ||||||
Franco-Nevada Corp. | 620,640 | 44,287,269 | ||||||
Freeport-McMoRan, Inc.(a) | 4,965,120 | 61,120,627 | ||||||
Glencore plc* | 40,051,968 | 158,912,537 | ||||||
Grupo Mexico SAB de CV, Series B(a) | 12,068,000 | 35,265,923 | ||||||
Korea Zinc Co. Ltd. | 41,376 | 16,027,599 | ||||||
MMC Norilsk Nickel PJSC | 58,433 | 12,977,370 | ||||||
MMC Norilsk Nickel PJSC, ADR | 1,373,692 | 30,495,962 | ||||||
Newcrest Mining Ltd. | 2,579,104 | 45,400,710 | ||||||
Newmont Goldcorp Corp.(a) | 1,806,752 | 56,117,717 | ||||||
Norsk Hydro ASA(a) | 4,685,832 | 20,027,563 | ||||||
Rio Tinto plc | 3,823,832 | 222,577,500 | ||||||
Royal Gold, Inc.(a) | 220,672 | 19,211,704 | ||||||
South32 Ltd. | 17,515,840 | 41,177,269 | ||||||
Sumitomo Metal Mining Co. Ltd. | 903,500 | 28,222,460 | ||||||
Teck Resources Ltd., Class B | 1,682,624 | 39,626,471 | ||||||
Vale SA | 10,344,000 | 131,188,619 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 207 |
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Vedanta Ltd. | 5,809,880 | $ | 13,937,113 | |||||
Wheaton Precious Metals Corp. | 1,502,433 | 32,367,312 | ||||||
1,620,876,022 | ||||||||
Multi-Utilities – 1.2% | ||||||||
Suez(a) | 1,472,296 | 20,666,277 | ||||||
Veolia Environnement SA(a) | 1,955,016 | 46,142,174 | ||||||
66,808,451 | ||||||||
Oil, Gas & Consumable Fuels – 29.4% | ||||||||
Anadarko Petroleum Corp. | 510,304 | 37,175,646 | ||||||
Apache Corp.(a) | 386,176 | 12,709,052 | ||||||
BP plc | 20,212,170 | 147,294,233 | ||||||
Cameco Corp. | 1,303,344 | 14,320,119 | ||||||
Canadian Natural Resources Ltd. | 1,293,000 | 38,659,277 | ||||||
Chevron Corp. | 1,865,368 | 223,956,082 | ||||||
China Petroleum & Chemical Corp., Class H | 27,584,000 | 21,201,152 | ||||||
CNOOC Ltd. | 16,329,000 | 29,513,501 | ||||||
Concho Resources, Inc.(a) | 210,328 | 24,267,645 | ||||||
ConocoPhillips | 1,151,632 | 72,691,012 | ||||||
Devon Energy Corp. | 486,168 | 15,625,440 | ||||||
Eni SpA | 2,561,864 | 43,692,110 | ||||||
EOG Resources, Inc. | 596,504 | 57,294,209 | ||||||
Equinor ASA | 1,103,360 | 24,555,263 | ||||||
Exxon Mobil Corp. | 3,520,408 | 282,618,354 | ||||||
Gazprom PJSC | 4,154,842 | 10,548,354 | ||||||
Gazprom PJSC, ADR | 4,038,301 | 20,167,275 | ||||||
Gazprom PJSC, ADR, OTC | 155,011 | 778,155 | ||||||
Hess Corp.(a) | 258,600 | 16,581,432 | ||||||
LUKOIL PJSC | 38,086 | 3,250,233 | ||||||
LUKOIL PJSC, ADR | 327,402 | 27,757,142 | ||||||
Marathon Oil Corp. | 830,968 | 14,159,695 | ||||||
Occidental Petroleum Corp. | 762,008 | 44,867,031 | ||||||
PetroChina Co. Ltd., Class H | 20,688,000 | 13,132,057 | ||||||
Petroleo Brasileiro SA (Preference) | 4,482,400 | 30,761,680 | ||||||
Pioneer Natural Resources Co. | 175,848 | 29,271,658 | ||||||
Repsol SA | 1,330,928 | 22,567,469 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Royal Dutch Shell plc, Class A | 4,544,464 | $ | 145,147,562 | |||||
Suncor Energy, Inc. | 1,668,832 | 54,808,949 | ||||||
Tatneft PJSC | 1,603,320 | 18,807,091 | ||||||
TOTAL SA(a) | 2,510,144 | 139,375,950 | ||||||
Woodside Petroleum Ltd. | 972,336 | 24,220,161 | ||||||
1,661,774,989 | ||||||||
Paper & Forest Products – 3.2% | ||||||||
Canfor Corp.* | 224,120 | 2,334,167 | ||||||
Duratex SA | 1,034,400 | 2,602,824 | ||||||
Interfor Corp.* (a) | 224,120 | 2,782,340 | ||||||
Mondi plc(a) | 1,193,008 | 26,136,225 | ||||||
Oji Holdings Corp. | 3,448,000 | 20,618,343 | ||||||
Stella-Jones, Inc. | 193,088 | 6,566,887 | ||||||
Stora Enso OYJ, Class R | 1,903,296 | 23,601,909 | ||||||
Suzano SA | 2,068,800 | 21,330,589 | ||||||
Svenska Cellulosa AB SCA, Class B(a) | 2,058,456 | 17,932,567 | ||||||
UPM-Kymmene OYJ | 1,786,064 | 50,261,228 | ||||||
West Fraser Timber Co. Ltd. | 186,192 | 9,546,285 | ||||||
183,713,364 | ||||||||
Trading Companies & Distributors – 2.3% | ||||||||
Marubeni Corp. | 13,968,700 | 99,721,781 | ||||||
Mitsui & Co. Ltd. | 1,724,000 | 27,769,751 | ||||||
127,491,532 | ||||||||
Water Utilities – 3.9% | ||||||||
Aguas Andinas SA, Class A | 9,523,376 | 5,464,368 | ||||||
American States Water Co.(a) | 131,024 | 9,324,978 | ||||||
American Water Works Co., Inc.(a) | 634,432 | 68,639,198 | ||||||
Aqua America, Inc.(a) | 634,432 | 24,780,914 | ||||||
California Water Service Group(a) | 168,952 | 8,513,491 | ||||||
China Water Affairs Group Ltd. | 2,942,000 | 3,026,224 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 1,210,100 | 14,397,565 | ||||||
Cia de Saneamento de Minas Gerais-COPASA | 218,200 | 3,811,305 | ||||||
Guangdong Investment Ltd. | 10,123,576 | 18,968,640 |
See Accompanying Notes to the Financial Statements.
208 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Water Utilities – (continued) | ||||||||
Pennon Group plc | 1,479,192 | $ | 14,435,618 | |||||
Severn Trent plc | 841,312 | 22,330,366 | ||||||
United Utilities Group plc | 2,372,224 | 25,631,052 | ||||||
219,323,719 | ||||||||
Total Common Stocks (Cost $4,953,560,407) |
| 5,608,852,141 | ||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(b) – 4.1% | ||||||||
CERTIFICATES OF DEPOSIT – 1.8% | ||||||||
ABN AMRO Bank NV | $ | 5,000,000 | 4,976,750 | |||||
Bank of Montreal, Chicago |
| |||||||
(SOFR + 0.44%), 2.78%, 5/9/2019(c) | 3,000,000 | 3,000,094 | ||||||
(ICE LIBOR USD 1 Month + 0.33%), 2.80%, 8/6/2019(c) | 5,000,000 | 5,003,380 | ||||||
Bank of Nova Scotia, Houston |
| |||||||
(SOFR + 0.43%), 2.91%, 5/16/2019(c) | 2,000,000 | 2,000,000 | ||||||
(ICE LIBOR USD 3 Month + 0.22%), 2.67%, 12/30/2019(c) | 3,000,000 | 3,002,916 | ||||||
Barclays Bank plc, New York | 4,000,000 | 4,001,712 | ||||||
Canadian Imperial Bank of Commerce, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.25%), 2.72%, 10/15/2019(c) | 5,000,000 | 5,003,225 | ||||||
Cooperatieve Rabobank UA, London | ||||||||
(ICE LIBOR USD 1 Month + 0.19%), 2.67%, 4/24/2020(c) | 5,000,000 | 5,000,000 | ||||||
Credit Agricole CIB, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.70%, 12/20/2019(c) | 5,000,000 | 5,001,230 |
Principal Amount | Value | |||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
KBC Bank NV, Brussels 2.61%, 7/2/2019 | $ | 5,000,000 | $ | 5,000,000 | ||||
Mitsubishi UFJ Trust & Banking Corp., New York 2.62%, 6/13/2019 | 2,000,000 | 1,999,880 | ||||||
MUFG Bank Ltd., New York Branch | ||||||||
(ICE LIBOR USD 3 Month + 0.10%), 2.68%, 10/24/2019(c) | 2,500,000 | 2,499,540 | ||||||
Nationwide Building Society | 5,000,000 | 4,979,714 | ||||||
Royal Bank of Canada, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.68%, 9/17/2019(c) | 4,000,000 | 4,001,684 | ||||||
Shizuoka Bank Ltd., New York 2.59%, 6/11/2019 | 2,000,000 | 2,000,000 | ||||||
Societe Generale, New York |
| |||||||
(ICE LIBOR USD 3 Month + 0.20%), 2.71%, 8/5/2019(c) | 4,000,000 | 4,002,344 | ||||||
(ICE LIBOR USD 3 Month + 0.20%), 2.72%, 8/21/2019(c) | 3,000,000 | 3,002,109 | ||||||
Standard Chartered, New York 2.69%, 8/14/2019 | 6,000,000 | 6,001,932 | ||||||
Sumitomo Mitsui Trust Bank Ltd., New York | 5,000,000 | 5,000,415 | ||||||
Svenska Handelsbanken, New York | ||||||||
(ICE LIBOR USD 3 Month + 0.02%), 2.61%, 7/19/2019(c) | 5,000,000 | 5,000,715 | ||||||
The Chiba Bank Ltd., New York Branch | 5,000,000 | 5,000,000 | ||||||
2.62%, 7/29/2019 | 2,000,000 | 1,999,972 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 209 |
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
The Sumitomo Bank Ltd., New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.68%, 5/17/2019(c) | $ | 3,000,000 | $ | 3,000,000 | ||||
Toronto-Dominion Bank, New York 2.75%, 6/17/2019 | 2,000,000 | 2,000,000 | ||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.68%, 9/17/2019(c) | 4,000,000 | 4,001,840 | ||||||
Wells Fargo Bank (San Francisco) NA | ||||||||
(ICE LIBOR USD 3 Month + 0.21%), 2.80%, 10/25/2019(c) | 3,500,000 | 3,500,000 | ||||||
Westpac Banking Corp., New York | ||||||||
(US Federal Funds Effective Rate (continuous series) + 0.30%), 2.75%, 2/14/2020(c) | 4,000,000 | 3,999,985 | ||||||
Total Certificates of Deposit (Cost $103,962,917) |
| 103,979,437 | ||||||
COMMERCIAL PAPER – 0.2% | ||||||||
National Bank of Canada |
| |||||||
(ICE LIBOR USD 1 Month + 0.27%), 2.74%, 5/7/2019(c) (d) | 5,000,000 | 5,000,000 | ||||||
Toyota Motor Credit Corp. | 5,000,000 | 4,957,575 | ||||||
Total Commercial Paper (Cost $9,956,333) |
| 9,957,575 | ||||||
Principal Amount | Value | |||||||
FUNDING AGREEMENTS – 0.1% | ||||||||
United of Omaha Life Insurance |
| |||||||
(ICE LIBOR USD 3 Month + 0.12%), 2.75%, 5/30/2019(c) (Cost $3,000,000) | $ | 3,000,000 | $ | 3,000,000 | ||||
REPURCHASE AGREEMENTS – 2.0% | ||||||||
Citadel Clearing LLC, 3.03%, dated 4/30/2019, due 7/31/2019, repurchase price $5,038,716, collateralized by various Common Stocks; total market value $5,515,709 | 5,000,000 | 5,000,000 | ||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $51,580,444, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $52,612,202 | 51,576,504 | 51,576,504 | ||||||
ML Pierce Fenner & Smith, Inc., 2.97%, dated 4/30/2019, due 7/31/2019, repurchase price $8,060,720, collateralized by various Common Stocks; total market value $8,846,125 | 8,000,000 | 8,000,000 |
See Accompanying Notes to the Financial Statements.
210 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Societe Generale, 2.53%, dated 4/30/2019, due 5/1/2019, repurchase price $50,003,514, collateralized by various U.S. Treasury Securities, ranging from 0.38% – 2.88%, maturing 2/15/2020 – 8/15/2026; Common Stocks; total market value $55,752,926 | $ | 50,000,000 | $ | 50,000,000 | ||||
Total Repurchase Agreements (Cost $114,576,504) |
| 114,576,504 | ||||||
Total Securities Lending Reinvestments (Cost $231,495,754) |
| 231,513,516 | ||||||
Total Investments – 103.4% (Cost $5,185,056,161) |
| 5,840,365,657 | ||||||
Liabilities in excess of other assets – (3.4%) |
| (190,625,019 | ) | |||||
NET ASSETS – 100.0% |
| $ | 5,649,740,638 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $517,096,799, collateralized in the form of cash with a value of $231,439,250 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $53,821,472 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 15, 2019 – November 15, 2047 and $257,792,624 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from July 15, 2019 – September 20, 2117; a total value of $543,053,346. |
(b) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $231,513,516. |
(c) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2019. |
(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. |
Percentages shown are based on Net Assets.
Abbreviations
ADR – American Depositary Receipt
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
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.
SCA – Limited partnership with share capital
SOFR – Secured Overnight Financing Rate
USD – US Dollar
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 776,912,651 | ||
Aggregate gross unrealized depreciation | (146,187,677 | ) | ||
Net unrealized appreciation | $ | 630,724,974 | ||
Federal income tax cost | $ | 5,211,297,499 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 211 |
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Futures Contracts
FlexShares® Morningstar Global Upstream Natural Resources Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index | 17 | 06/21/2019 | EUR | $ | 657,672 | $ | 34,794 | |||||||||||||
FTSE 100 Index | 116 | 06/21/2019 | GBP | 11,147,432 | 477,083 | |||||||||||||||
FTSE/JSE Top 40 Index | 30 | 06/20/2019 | ZAR | 1,101,460 | 55,826 | |||||||||||||||
Hang Seng Index | 3 | 05/30/2019 | HKD | 563,413 | (8,291 | ) | ||||||||||||||
MSCI Emerging MarketsE-Mini Index | 16 | 06/21/2019 | USD | 864,160 | 36,082 | |||||||||||||||
S&P Midcap 400E-Mini Index | 24 | 06/21/2019 | USD | 4,736,160 | 263,504 | |||||||||||||||
S&P/TSX 60 Index | 82 | 06/20/2019 | CAD | 12,111,032 | 487,032 | |||||||||||||||
SPI 200 Index | 50 | 06/20/2019 | AUD | 5,546,338 | 113,861 | |||||||||||||||
TOPIX Index | 2 | 06/13/2019 | JPY | 290,011 | 5,846 | |||||||||||||||
$ | 1,465,737 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Forward Foreign Currency Contracts
FlexShares® Morningstar Global Upstream Natural Resources Index Fund had the following outstanding contracts as of April 30, 2019:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
EUR | 277,011 | JPMorgan Chase Bank | USD | 310,000 | 06/19/2019 | $ | 1,766 | |||||||||||||||
GBP | 268,051 | Bank of New York | USD | 348,000 | 06/19/2019 | 2,363 | ||||||||||||||||
INR* | 11,240,485 | Goldman Sachs & Co. | USD | 159,336 | 06/19/2019 | 1,276 | ||||||||||||||||
MXN | 15,588,275 | Morgan Stanley | USD | 800,000 | 06/19/2019 | 12,986 | ||||||||||||||||
RUB* | 102,583,422 | Goldman Sachs & Co. | USD | 1,540,243 | 06/19/2019 | 36,991 | ||||||||||||||||
USD | 543,000 | Goldman Sachs & Co. | AUD | 758,098 | 06/19/2019 | 8,774 | ||||||||||||||||
USD | 2,200,000 | Morgan Stanley | AUD | 3,099,828 | 06/19/2019 | 15,576 | ||||||||||||||||
USD | 1,351,000 | Goldman Sachs & Co. | BRL* | 5,222,573 | 06/19/2019 | 33,986 | ||||||||||||||||
USD | 800,000 | Morgan Stanley | BRL* | 3,156,160 | 06/19/2019 | 4,088 | ||||||||||||||||
USD | 1,775,000 | Citibank NA | CAD | 2,362,237 | 06/19/2019 | 16,719 | ||||||||||||||||
USD | 4,400,000 | Morgan Stanley | CAD | 5,855,869 | 06/19/2019 | 41,310 | ||||||||||||||||
USD | 964,443 | Morgan Stanley | CHF | 961,534 | 06/19/2019 | 16,326 | ||||||||||||||||
USD | 3,470,000 | Citibank NA | EUR | 3,033,456 | 06/19/2019 | 55,949 | ||||||||||||||||
USD | 2,080,000 | Toronto-Dominion Bank (The) | EUR | 1,822,499 | 06/19/2019 | 28,839 | ||||||||||||||||
USD | 10,067,377 | Morgan Stanley | GBP | 7,559,966 | 06/19/2019 | 185,936 | ||||||||||||||||
USD | 176,000 | Citibank NA | HKD | 1,378,604 | 06/19/2019 | 151 | ||||||||||||||||
USD | 2,510,000 | Citibank NA | JPY | 275,294,516 | 06/19/2019 | 28,218 | ||||||||||||||||
USD | 1,450,000 | Morgan Stanley | JPY | 160,612,144 | 06/19/2019 | 2,080 | ||||||||||||||||
USD | 417,510 | Morgan Stanley | KRW* | 470,345,728 | 06/19/2019 | 14,147 | ||||||||||||||||
USD | 910,000 | Citibank NA | NOK | 7,703,452 | 06/19/2019 | 17,424 | ||||||||||||||||
USD | 420,000 | Toronto-Dominion Bank (The) | NOK | 3,575,013 | 06/19/2019 | 5,774 | ||||||||||||||||
USD | 280,000 | Goldman Sachs & Co. | NZD | 407,941 | 06/19/2019 | 7,696 | ||||||||||||||||
USD | 340,000 | Morgan Stanley | RUB* | 21,932,210 | 06/19/2019 | 2,789 | ||||||||||||||||
USD | 465,000 | Toronto-Dominion Bank (The) | SEK | 4,281,483 | 06/19/2019 | 12,851 |
See Accompanying Notes to the Financial Statements.
212 | FLEXSHARES SEMIANNUAL REPORT |
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 | 191,000 | JPMorgan Chase Bank | SGD | 258,701 | 06/19/2019 | $ | 787 | |||||||||||||||
USD | 480,000 | Morgan Stanley | SGD | 648,302 | 06/19/2019 | 3,328 | ||||||||||||||||
Total unrealized appreciation |
| $ | 558,130 | |||||||||||||||||||
AUD | 5,635,712 | Citibank NA | USD | 3,990,997 | 06/19/2019 | $ | (19,556 | ) | ||||||||||||||
AUD | 1,067,930 | Morgan Stanley | USD | 760,000 | 06/19/2019 | (7,438 | ) | |||||||||||||||
AUD | 353,053 | Toronto-Dominion Bank (The) | USD | 250,000 | 06/19/2019 | (1,206 | ) | |||||||||||||||
BRL* | 6,578,755 | BNP Paribas SA | USD | 1,709,800 | 06/19/2019 | (50,788 | ) | |||||||||||||||
BRL* | 2,093,245 | Citibank NA | USD | 550,000 | 06/19/2019 | (22,131 | ) | |||||||||||||||
CAD | 11,506,917 | Citibank NA | USD | 8,653,203 | 06/19/2019 | (88,277 | ) | |||||||||||||||
CAD | 574,572 | Societe Generale | USD | 430,000 | 06/19/2019 | (2,330 | ) | |||||||||||||||
EUR | 882,154 | JPMorgan Chase Bank | USD | 1,000,000 | 06/19/2019 | (7,165 | ) | |||||||||||||||
EUR | 3,911,918 | Morgan Stanley | USD | 4,460,059 | 06/19/2019 | (57,328 | ) | |||||||||||||||
GBP | 9,168,498 | Citibank NA | USD | 12,000,000 | 06/19/2019 | (16,087 | ) | |||||||||||||||
GBP | 257,043 | Goldman Sachs & Co. | USD | 337,000 | 06/19/2019 | (1,025 | ) | |||||||||||||||
GBP | 366,124 | Morgan Stanley | USD | 480,000 | 06/19/2019 | (1,448 | ) | |||||||||||||||
GBP | 301,998 | Toronto-Dominion Bank (The) | USD | 400,000 | 06/19/2019 | (5,266 | ) | |||||||||||||||
HKD | 2,410,919 | Goldman Sachs & Co. | USD | 307,852 | 06/19/2019 | (324 | ) | |||||||||||||||
JPY | 225,628,220 | JPMorgan Chase Bank | USD | 2,040,865 | 06/19/2019 | (6,825 | ) | |||||||||||||||
MXN | 534,260 | JPMorgan Chase Bank | USD | 27,969 | 06/19/2019 | (105 | ) | |||||||||||||||
NOK | 20,904,320 | Citibank NA | USD | 2,440,872 | 06/19/2019 | (18,751 | ) | |||||||||||||||
NOK | 2,059,549 | Morgan Stanley | USD | 240,000 | 06/19/2019 | (1,366 | ) | |||||||||||||||
NZD | 895,559 | Citibank NA | USD | 613,078 | 06/19/2019 | (15,285 | ) | |||||||||||||||
SEK | 4,945,891 | Citibank NA | USD | 534,537 | 06/19/2019 | (12,222 | ) | |||||||||||||||
SGD | 1,471,336 | Societe Generale | USD | 1,086,934 | 06/19/2019 | (5,115 | ) | |||||||||||||||
USD | 170,000 | JPMorgan Chase Bank | CAD | 228,828 | 06/19/2019 | (323 | ) | |||||||||||||||
USD | 150,000 | Goldman Sachs & Co. | GBP | 115,920 | 06/19/2019 | (1,516 | ) | |||||||||||||||
USD | 192,000 | JPMorgan Chase Bank | JPY | 21,401,662 | 06/19/2019 | (936 | ) | |||||||||||||||
USD | 823,080 | Societe Generale | MXN | 16,122,535 | 06/19/2019 | (17,770 | ) | |||||||||||||||
USD | 410,000 | Goldman Sachs & Co. | RUB* | 27,087,114 | 06/19/2019 | (6,468 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (367,051 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 191,079 |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
AUD – Australian Dollar
BRL – Brazilian Real
CAD – Canadian Dollar
CHF – Swiss Franc
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
INR – Indian Rupee
JPY – Japanese Yen
KRW – Korean Won
MXN – Mexican Peso
NOK – Norwegian Krone
NZD – New Zealand Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 213 |
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
RUB – Russian Ruble
SEK – Swedish Krona
SGD – Singapore Dollar
USD – US Dollar
ZAR – South African Rand
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, 2019:
Australia | 8.2 | % | ||
Brazil | 3.6 | |||
Canada | 11.4 | |||
Chile | 0.1 | |||
China | 1.5 | |||
Finland | 1.3 | |||
France | 3.6 | |||
Germany | 0.6 | |||
India | 1.0 | |||
Indonesia | 0.4 | |||
Israel | 0.5 | |||
Italy | 0.8 | |||
Japan | 3.3 | |||
Malaysia | 1.5 | |||
Mexico | 0.6 | |||
New Zealand | 1.1 | |||
Norway | 3.7 | |||
Philippines | 0.1 | |||
Russia | 2.2 | |||
Singapore | 1.4 | |||
South Africa | 0.6 | |||
South Korea | 0.6 | |||
Spain | 0.4 | |||
Sweden | 0.8 | |||
Thailand | 0.5 | |||
United Kingdom | 15.8 | |||
United States | 33.7 | |||
Other1 | 0.7 | |||
100.0 | % |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
214 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® STOXX® Global Broad Infrastructure Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.8% | ||||||||
Air Freight & Logistics – 2.4% | ||||||||
bpost SA(a) | 44,625 | $ | 535,620 | |||||
CTT-Correios de Portugal SA | 44,625 | 126,328 | ||||||
Deutsche Post AG (Registered)* | 546,750 | 18,933,750 | ||||||
Oesterreichische Post AG | 15,375 | 597,908 | ||||||
PostNL NV(a) | 214,125 | 554,091 | ||||||
Royal Mail plc | 532,500 | 1,754,921 | ||||||
Singapore Post Ltd. | 675,000 | 515,722 | ||||||
23,018,340 | ||||||||
Commercial Services & Supplies – 3.6% | ||||||||
Advanced Disposal Services, Inc.* (a) | 18,000 | 582,120 | ||||||
Bingo Industries Ltd.(a) (b) | 191,250 | 226,820 | ||||||
China Everbright International Ltd.(a) | 1,875,000 | 1,835,470 | ||||||
Clean Harbors, Inc.* | 10,125 | 769,500 | ||||||
Cleanaway Waste Management Ltd. | 1,200,000 | 1,900,395 | ||||||
Covanta Holding Corp.(a) | 24,750 | 447,233 | ||||||
Daiseki Co. Ltd.(a) | 37,500 | 1,025,253 | ||||||
Insun ENT Co. Ltd.* | 20,250 | 169,364 | ||||||
Koentec Co. Ltd. | 22,875 | 222,258 | ||||||
Republic Services, Inc.(a) | 39,000 | 3,229,980 | ||||||
Shanghai Youngsun Investment Co. Ltd., Class B* ^ (c) | 57,800 | 168,892 | ||||||
Stericycle, Inc.* (a) | 16,875 | 985,331 | ||||||
Waste Connections, Inc.(a) | 148,500 | 13,726,204 | ||||||
Waste Management, Inc. | 76,125 | 8,171,257 | ||||||
33,460,077 | ||||||||
Diversified Financial Services – 0.1% | ||||||||
Metro Pacific Investments Corp. | 6,375,000 | 559,055 | ||||||
Diversified Telecommunication Services – 14.6% | ||||||||
AT&T, Inc. | 1,279,125 | 39,601,710 | ||||||
BCE, Inc. | 163,875 | 7,302,013 | ||||||
BT Group plc | 1,587,375 | 4,739,918 | ||||||
Cellnex Telecom SA(b) | 40,875 | 1,256,072 | ||||||
CenturyLink, Inc.(a) | 163,875 | 1,871,453 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
China Telecom Corp. Ltd., Class H | 3,000,000 | $ | 1,552,502 | |||||
China Tower Corp. Ltd., Class H(b) | 8,250,000 | 2,229,332 | ||||||
Chunghwa Telecom Co. Ltd. | 942,000 | 3,383,774 | ||||||
Deutsche Telekom AG (Registered) | 593,625 | 9,921,919 | ||||||
Infrastrutture Wireless Italiane SpA(b) | 54,375 | 449,723 | ||||||
Nippon Telegraph & Telephone Corp. | 206,500 | 8,558,510 | ||||||
Swisscom AG (Registered)(a) | 4,875 | 2,271,013 | ||||||
Telefonica SA | 850,875 | 7,086,974 | ||||||
Telstra Corp. Ltd. | 2,157,750 | 5,133,315 | ||||||
Verizon Communications, Inc. | 726,375 | 41,541,387 | ||||||
136,899,615 | ||||||||
Electric Utilities – 12.2% | ||||||||
American Electric Power Co., Inc. | 87,750 | 7,507,012 | ||||||
CLP Holdings Ltd. | 694,000 | 7,868,471 | ||||||
Duke Energy Corp. | 126,000 | 11,481,120 | ||||||
Enel SpA | 3,021,000 | 19,091,594 | ||||||
Eversource Energy | 54,375 | 3,896,512 | ||||||
Exelon Corp. | 172,125 | 8,769,769 | ||||||
Iberdrola SA | 2,317,875 | 21,035,709 | ||||||
NextEra Energy, Inc. | 84,375 | 16,405,875 | ||||||
PPL Corp. | 126,375 | 3,944,164 | ||||||
Southern Co. (The)(a) | 177,000 | 9,419,940 | ||||||
Xcel Energy, Inc. | 92,250 | 5,212,125 | ||||||
114,632,291 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 4.4% | ||||||||
American Tower Corp. | 78,000 | 15,233,400 | ||||||
CoreCivic, Inc.(a) | 16,125 | 335,561 | ||||||
Crown Castle International Corp. | 73,875 | 9,291,998 | ||||||
CyrusOne, Inc.(a) | 16,875 | 939,769 | ||||||
Digital Realty Trust, Inc.(a) | 35,625 | 4,193,419 | ||||||
Equinix, Inc. | 14,250 | 6,479,475 | ||||||
GEO Group, Inc. (The) | 16,875 | 337,838 | ||||||
Keppel DC REIT | 262,500 | 291,195 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 215 |
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
QTS Realty Trust, Inc., Class A(a) | 11,250 | $ | 510,187 | |||||
SBA Communications Corp.* | 20,625 | 4,201,931 | ||||||
41,814,773 | ||||||||
Gas Utilities – 0.5% | ||||||||
APA Group | 396,000 | 2,681,330 | ||||||
Beijing Enterprises Holdings Ltd. | 187,500 | 997,798 | ||||||
Petronas Gas Bhd. | 150,000 | 641,432 | ||||||
4,320,560 | ||||||||
Health Care Providers & Services – 2.9% | ||||||||
Acadia Healthcare Co., Inc.* (a) | 12,375 | 396,247 | ||||||
Bangkok Chain Hospital PCL, NVDR | 937,500 | 534,456 | ||||||
Bangkok Dusit Medical Services PCL, NVDR | 5,962,500 | 4,762,529 | ||||||
Bumrungrad Hospital PCL, NVDR | 262,500 | 1,455,364 | ||||||
Encompass Health Corp. | 18,000 | 1,160,100 | ||||||
Hapvida Participacoes e Investimentos SA(b) | 75,000 | 574,513 | ||||||
HCA Healthcare, Inc.(a) | 49,125 | 6,250,174 | ||||||
Healthscope Ltd. | 864,000 | 1,489,910 | ||||||
IHH Healthcare Bhd. | 1,912,500 | 2,571,895 | ||||||
Life Healthcare Group Holdings Ltd. | 651,000 | 1,182,914 | ||||||
Netcare Ltd. | 632,625 | 1,058,181 | ||||||
Ramsay Health Care Ltd.(a) | 74,625 | 3,430,920 | ||||||
Tenet Healthcare Corp.* | 19,875 | 435,263 | ||||||
Universal Health Services, Inc., Class B(a) | 15,000 | 1,903,050 | ||||||
27,205,516 | ||||||||
IT Services – 0.0%(d) | ||||||||
NEXTDC Ltd.* (a) | 43,125 | 193,959 | ||||||
Media – 5.9% | ||||||||
Charter Communications, Inc., Class A* | 27,750 | 10,300,522 | ||||||
Comcast Corp., Class A | 797,625 | 34,720,616 | ||||||
DISH Network Corp., Class A* | 37,500 | 1,317,000 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
Liberty Broadband Corp., Class C* (a) | 27,750 | $ | 2,739,203 | |||||
Liberty Global plc, Class C* | 91,125 | 2,382,919 | ||||||
SES SA, FDR(a) | 76,125 | 1,294,203 | ||||||
Shaw Communications, Inc., Class B | 94,500 | 1,905,876 | ||||||
Sirius XM Holdings, Inc.(a) | 223,500 | 1,298,535 | ||||||
55,958,874 | ||||||||
Multi-Utilities – 8.5% | ||||||||
Consolidated Edison, Inc. | 55,875 | 4,814,190 | ||||||
Dominion Energy, Inc. | 136,125 | 10,600,054 | ||||||
DTE Energy Co.(a) | 31,125 | 3,912,724 | ||||||
E.ON SE | 859,875 | 9,220,317 | ||||||
Engie SA | 713,625 | 10,560,824 | ||||||
National Grid plc | 1,311,750 | 14,297,835 | ||||||
Public Service Enterprise Group, Inc. | 90,375 | 5,390,869 | ||||||
Sempra Energy | 48,000 | 6,141,600 | ||||||
Suez(a) | 208,875 | 2,931,930 | ||||||
Veolia Environnement SA(a) | 312,375 | 7,372,656 | ||||||
WEC Energy Group, Inc.(a) | 56,625 | 4,441,099 | ||||||
79,684,098 | ||||||||
Oil, Gas & Consumable Fuels – 9.5% | ||||||||
Enagas SA | 90,750 | 2,583,270 | ||||||
Enbridge, Inc.(a) | 780,000 | 28,696,253 | ||||||
Equitrans Midstream Corp.(a) | 40,125 | 835,804 | ||||||
Inter Pipeline Ltd.(a) | 149,250 | 2,420,930 | ||||||
Keyera Corp. | 76,500 | 1,760,660 | ||||||
Kinder Morgan, Inc.(a) | 340,500 | 6,765,735 | ||||||
Koninklijke Vopak NV(a) | 23,625 | 1,052,442 | ||||||
ONEOK, Inc.(a) | 73,500 | 4,992,855 | ||||||
Pembina Pipeline Corp. | 197,625 | 7,037,048 | ||||||
Plains GP Holdings LP, Class A* (a) | 25,125 | 592,950 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 661,875 | 1,002,815 | ||||||
Snam SpA | 873,375 | 4,440,776 | ||||||
Tallgrass Energy LP(a) | 28,875 | 697,043 | ||||||
Targa Resources Corp.(a) | 42,750 | 1,716,413 | ||||||
TransCanada Corp. | 351,375 | 16,701,544 | ||||||
Transneft PJSC (Preference) | 624 | 1,623,352 |
See Accompanying Notes to the Financial Statements.
216 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Williams Cos., Inc. (The) | 210,000 | $ | 5,949,300 | |||||
88,869,190 | ||||||||
Road & Rail – 19.1% | ||||||||
Aurizon Holdings Ltd. | 1,086,000 | 3,638,454 | ||||||
Canadian National Railway Co. | 406,125 | 37,569,280 | ||||||
Canadian Pacific Railway Ltd. | 79,125 | 17,656,074 | ||||||
Central Japan Railway Co. | 115,500 | 24,780,000 | ||||||
CSX Corp.(a) | 150,000 | 11,944,500 | ||||||
East Japan Railway Co. | 211,300 | 19,854,137 | ||||||
Hankyu Hanshin Holdings, Inc. | 150,000 | 5,589,226 | ||||||
Kansas City Southern | 18,750 | 2,308,875 | ||||||
Keisei Electric Railway Co. Ltd. | 97,800 | 3,415,865 | ||||||
Kyushu Railway Co. | 75,000 | 2,437,710 | ||||||
MTR Corp. Ltd. | 937,500 | 5,580,499 | ||||||
Norfolk Southern Corp.(a) | 48,375 | 9,869,468 | ||||||
Tobu Railway Co. Ltd. | 112,500 | 3,171,717 | ||||||
Union Pacific Corp. | 130,500 | 23,103,720 | ||||||
West Japan Railway Co. | 112,500 | 8,345,455 | ||||||
179,264,980 | ||||||||
Transportation Infrastructure – 8.0% | ||||||||
Adani Ports & Special Economic Zone Ltd. | 532,875 | 3,009,375 | ||||||
Aena SME SA(b) | 40,500 | 7,504,964 | ||||||
Aeroports de Paris | 15,750 | 3,205,426 | ||||||
Airports of Thailand PCL, NVDR | 2,437,500 | 5,230,031 | ||||||
Atlantia SpA | 257,625 | 7,021,679 | ||||||
Atlas Arteria Ltd.(a) | 382,875 | 1,886,406 | ||||||
Auckland International Airport Ltd. | 542,250 | 2,882,163 | ||||||
Bangkok Expressway & Metro PCL, NVDR | 4,912,500 | 1,677,252 | ||||||
CCR SA | 675,000 | 1,997,507 | ||||||
China Merchants Port Holdings Co. Ltd. | 750,000 | 1,514,263 | ||||||
COSCO SHIPPING Ports Ltd. | 751,677 | 749,244 | ||||||
Flughafen Zurich AG (Registered) | 10,125 | 1,667,296 | ||||||
Getlink SE | 250,500 | 4,028,552 |
Investments | Shares | Value | ||||||
Transportation Infrastructure – (continued) | ||||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B(a) | 225,000 | $ | 2,279,936 | |||||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 118,125 | 1,938,954 | ||||||
International Container Terminal Services, Inc. | 948,750 | 2,303,034 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 750,000 | 1,066,867 | ||||||
Promotora y Operadora de Infraestructura SAB de CV(a) | 112,500 | 1,140,441 | ||||||
Qube Holdings Ltd.(a) | 856,875 | 1,706,806 | ||||||
Shenzhen International Holdings Ltd. | 562,500 | 1,213,131 | ||||||
Sydney Airport | 1,278,750 | 6,858,367 | ||||||
Transurban Group | 1,504,500 | 14,232,184 | ||||||
Westshore Terminals Investment Corp.(a) | 21,375 | 334,004 | ||||||
75,447,882 | ||||||||
Water Utilities – 2.6% | ||||||||
Aguas Andinas SA, Class A | 1,381,875 | 792,899 | ||||||
American States Water Co. | 6,000 | 427,020 | ||||||
American Water Works Co., Inc. | 32,625 | 3,529,699 | ||||||
Aqua America, Inc.(a) | 31,125 | 1,215,742 | ||||||
Beijing Enterprises Water Group Ltd.* | 3,000,000 | 1,862,238 | ||||||
California Water Service Group(a) | 8,250 | 415,717 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 187,500 | 2,230,843 | ||||||
Cia de Saneamento de Minas Gerais-COPASA | 37,500 | 655,014 | ||||||
Cia de Saneamento do Parana (Preference) | 225,000 | 811,078 | ||||||
Guangdong Investment Ltd. | 1,500,000 | 2,810,564 | ||||||
Pennon Group plc | 226,500 | 2,210,441 | ||||||
Severn Trent plc | 131,250 | 3,483,679 | ||||||
United Utilities Group plc | 373,500 | 4,035,537 | ||||||
24,480,471 | ||||||||
Wireless Telecommunication Services – 4.5% | ||||||||
China Mobile Ltd. | 1,018,500 | 9,704,142 | ||||||
KDDI Corp. | 314,700 | 7,178,410 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 217 |
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Wireless Telecommunication Services – (continued) | ||||||||
SoftBank Group Corp. | 160,900 | $ | 16,693,149 | |||||
Vodafone Group plc | 4,885,875 | 9,044,648 | ||||||
42,620,349 | ||||||||
Total Common Stocks (Cost $803,276,316) |
| 928,430,030 | ||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(e) – 2.5% | ||||||||
REPURCHASE AGREEMENTS – 2.5% | ||||||||
Citigroup Global Markets Ltd., 2.43%, dated 4/30/2019, due 5/1/2019, repurchase price $17,001,147, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 2.13%, maturing 9/5/2019 – 3/31/2024; total market value $17,338,387 | $ | 17,000,000 | 17,000,000 | |||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $4,065,335, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $4,146,653 | 4,065,024 | 4,065,024 |
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
ML Pierce Fenner & Smith, Inc., 2.97%, dated 4/30/2019, due 7/31/2019, repurchase price $2,015,180, collateralized by various Common Stocks; total market value $2,211,531 | $ | 2,000,000 | $ | 2,000,000 | ||||
23,065,024 | ||||||||
Total Securities Lending Reinvestments (Cost $23,065,024) |
| 23,065,024 | ||||||
Total Investments – 101.3% (Cost $826,341,340) |
| 951,495,054 | ||||||
Liabilities in excess of other assets – (1.3%) |
| (12,333,632 | ) | |||||
NET ASSETS – 100.0% |
| $ | 939,161,422 |
* | Non-income producing security. |
^ | Security subject to restrictions on resale. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $54,397,862, collateralized in the form of cash with a value of $23,065,024 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $3,472,953 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 15, 2019 – November 15, 2048 and $30,815,191 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from July 15, 2019 – September 20, 2117; a total value of $57,353,168. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Security fair valued as of April 30, 2019 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2019 amounted to $168,892, which represents approximately 0.02% 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 April 30, 2019. The total value of securities purchased was $23,065,024. |
See Accompanying Notes to the Financial Statements.
218 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Percentages shown are based on Net Assets.
Abbreviations
FDR – Fiduciary Depositary Receipt
NVDR –Non-Voting Depositary Receipt
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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 162,845,112 | ||
Aggregate gross unrealized depreciation | (39,408,337 | ) | ||
Net unrealized appreciation | $ | 123,436,775 | ||
Federal income tax cost | $ | 828,430,729 |
Futures Contracts
FlexShares® STOXX® Global Broad Infrastructure Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index | 27 | 06/21/2019 | EUR | $ | 1,044,537 | $ | 61,146 | |||||||||||||
FTSE 100 Index | 5 | 06/21/2019 | GBP | 480,493 | 9,962 | |||||||||||||||
S&P 500E-Mini Index | 27 | 06/21/2019 | USD | 3,980,475 | 195,306 | |||||||||||||||
S&P/TSX 60 Index | 17 | 06/20/2019 | CAD | 2,510,824 | 83,762 | |||||||||||||||
SPI 200 Index | 10 | 06/20/2019 | AUD | 1,109,267 | 21,286 | |||||||||||||||
TOPIX Index | 11 | 06/13/2019 | JPY | 1,595,062 | 8,365 | |||||||||||||||
$ | 379,827 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Forward Foreign Currency Contracts
FlexShares® STOXX® Global Broad Infrastructure Index Fund had the following outstanding contracts as of April 30, 2019:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 373,976 | Citibank NA | AUD | 528,093 | 06/19/2019 | $ | 1,833 | |||||||||||||||
USD | 220,000 | Citibank NA | EUR | 193,708 | 06/19/2019 | 1,988 | ||||||||||||||||
USD | 19,130 | Morgan Stanley | GBP | 14,414 | 06/19/2019 | 290 | ||||||||||||||||
USD | 460,000 | Citibank NA | JPY | 50,452,381 | 06/19/2019 | 5,171 | ||||||||||||||||
USD | 190,000 | JPMorgan Chase Bank | JPY | 21,039,238 | 06/19/2019 | 331 | ||||||||||||||||
Total unrealized appreciation |
| $ | 9,613 | |||||||||||||||||||
AUD | 139,927 | Citibank NA | USD | 100,000 | 06/19/2019 | $ | (1,394 | ) | ||||||||||||||
CAD | 740,643 | Citibank NA | USD | 556,976 | 06/19/2019 | (5,694 | ) | |||||||||||||||
CAD | 187,682 | Toronto-Dominion Bank (The) | USD | 140,000 | 06/19/2019 | (303 | ) | |||||||||||||||
EUR | 185,183 | Citibank NA | USD | 210,000 | 06/19/2019 | (1,582 | ) | |||||||||||||||
EUR | 306,603 | Morgan Stanley | USD | 349,565 | 06/19/2019 | (4,493 | ) | |||||||||||||||
EUR | 97,082 | Toronto-Dominion Bank (The) | USD | 110,000 | 06/19/2019 | (738 | ) | |||||||||||||||
GBP | 99,286 | Citibank NA | USD | 130,000 | 06/19/2019 | (225 | ) | |||||||||||||||
JPY | 14,367,847 | Citibank NA | USD | 130,000 | 06/19/2019 | (474 | ) | |||||||||||||||
JPY | 69,000,212 | JPMorgan Chase Bank | USD | 624,125 | 06/19/2019 | (2,087 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (16,990 | ) | ||||||||||||||||||
Net unrealized depreciation |
| $ | (7,377 | ) |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 219 |
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
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, 2019:
Australia | 4.6 | % | ||
Austria | 0.1 | |||
Belgium | 0.1 | |||
Brazil | 0.7 | |||
Canada | 14.4 | |||
Chile | 0.1 | |||
China | 2.7 | |||
France | 3.0 | |||
Germany | 4.0 | |||
Hong Kong | 1.4 | |||
India | 0.3 | |||
Italy | 3.3 | |||
Japan | 10.8 | |||
Luxembourg | 0.1 | |||
Malaysia | 0.3 | |||
Mexico | 0.6 | |||
Netherlands | 0.2 | |||
New Zealand | 0.3 | |||
Philippines | 0.3 | |||
Poland | 0.1 | |||
Portugal | 0.0 | † | ||
Russia | 0.2 | |||
Singapore | 0.1 | |||
South Africa | 0.2 | |||
South Korea | 0.0 | † | ||
Spain | 4.2 | |||
Switzerland | 0.4 | |||
Taiwan | 0.4 | |||
Thailand | 1.5 | |||
United Kingdom | 4.2 | |||
United States | 40.2 | |||
Other1 | 1.2 | |||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
220 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Global Quality Real Estate Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.2% | ||||||||
Equity Real Estate Investment Trusts (REITs) – 77.7% | ||||||||
AEON REIT Investment Corp. | 848 | $ | 1,024,833 | |||||
Agree Realty Corp. | 18,974 | 1,242,228 | ||||||
alstria officeREIT-AG* | 86,920 | 1,361,809 | ||||||
American Homes 4 Rent, Class A | 139,708 | 3,350,198 | ||||||
Apartment Investment & Management Co., Class A | 92,008 | 4,541,515 | ||||||
Argosy Property Ltd. | 153,594 | 134,698 | ||||||
AvalonBay Communities, Inc. | 74,094 | 14,887,707 | ||||||
Big Yellow Group plc | 91,160 | 1,237,132 | ||||||
British Land Co. plc (The)(a) | 334,218 | 2,588,077 | ||||||
Brixmor Property Group, Inc.(a) | 173,522 | 3,102,573 | ||||||
BWP Trust | 337,292 | 878,391 | ||||||
Camden Property Trust | 56,074 | 5,643,848 | ||||||
Canadian Apartment Properties REIT | 43,030 | 1,533,176 | ||||||
Champion REIT | 1,272,000 | 1,076,565 | ||||||
Charter Hall Group | 173,098 | 1,195,202 | ||||||
Chesapeake Lodging Trust(a) | 34,768 | 990,888 | ||||||
Derwent London plc | 61,268 | 2,531,943 | ||||||
Dexus | 587,134 | 5,165,678 | ||||||
DiamondRock Hospitality Co. | 120,204 | 1,305,415 | ||||||
Dream Global REIT | 110,558 | 1,133,359 | ||||||
Dream Office REIT(a) | 41,340 | 716,044 | ||||||
Duke Realty Corp. | 206,806 | 6,435,803 | ||||||
EastGroup Properties, Inc. | 20,988 | 2,399,558 | ||||||
EPR Properties | 43,036 | 3,393,819 | ||||||
Equity Commonwealth | 69,748 | 2,217,986 | ||||||
Equity LifeStyle Properties, Inc. | 49,290 | 5,752,143 | ||||||
Equity Residential | 205,004 | 15,666,406 | ||||||
Four Corners Property Trust, Inc. | 37,736 | 1,073,212 | ||||||
Frasers Centrepoint Trust | 487,600 | 856,130 | ||||||
Frontier Real Estate Investment Corp. | 248 | 1,030,967 | ||||||
Fukuoka REIT Corp. | 530 | 824,207 | ||||||
Gecina SA | 26,500 | 3,952,877 | ||||||
Getty Realty Corp. | 26,818 | 869,708 | ||||||
Goodman Group | 104,092 | 964,169 | ||||||
Goodman Property Trust | 612,574 | 706,749 | ||||||
Granite REIT | 19,080 | 865,068 | ||||||
Green REIT plc | 527,244 | 1,000,955 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Growthpoint Properties Australia Ltd. | 282,808 | $ | 838,019 | |||||
H&R REIT(a) | 80,242 | 1,365,402 | ||||||
Hansteen Holdings plc | 437,886 | 536,599 | ||||||
HCP, Inc. | 277,084 | 8,251,562 | ||||||
Healthcare Trust of America, Inc., Class A | 119,250 | 3,288,915 | ||||||
Host Hotels & Resorts, Inc. | 428,876 | 8,251,574 | ||||||
Ichigo Office REIT Investment(a) | 954 | 878,836 | ||||||
Inmobiliaria Colonial Socimi SA | 164,406 | 1,767,877 | ||||||
Investors Real Estate Trust(a) | 13,356 | 805,100 | ||||||
Japan Excellent, Inc. | 636 | 910,244 | ||||||
Japan Rental Housing Investments, Inc. | 1,060 | 817,544 | ||||||
Kenedix Office Investment Corp. | 212 | 1,418,092 | ||||||
Kenedix Residential Next Investment Corp. | 530 | 856,090 | ||||||
Killam Apartment REIT | 66,886 | 941,237 | ||||||
Kimco Realty Corp. | 243,270 | 4,230,465 | ||||||
Lexington Realty Trust | 122,112 | 1,107,556 | ||||||
Liberty Property Trust | 85,224 | 4,230,519 | ||||||
Life Storage, Inc. | 26,818 | 2,555,487 | ||||||
Link REIT | 1,219,000 | 14,217,057 | ||||||
LondonMetric Property plc | 409,266 | 1,078,817 | ||||||
LTC Properties, Inc.(a) | 22,790 | 1,026,917 | ||||||
Mapletree North Asia Commercial Trust(b) | 1,293,200 | 1,292,060 | ||||||
Medical Properties Trust, Inc.(a) | 213,908 | 3,734,834 | ||||||
Merlin Properties Socimi SA | 203,308 | 2,768,344 | ||||||
MGM Growth Properties LLC, Class A | 37,206 | 1,200,266 | ||||||
Mirvac Group | 440,430 | 877,291 | ||||||
Mori Trust Sogo Reit, Inc. | 636 | 958,782 | ||||||
National Health Investors, Inc. | 24,274 | 1,830,988 | ||||||
Nippon Accommodations Fund, Inc. | 246 | 1,256,781 | ||||||
Nippon Building Fund, Inc. | 567 | 3,650,182 | ||||||
NIPPON REIT Investment Corp. | 212 | 790,896 | ||||||
Park Hotels & Resorts, Inc. | 62,116 | 1,992,681 | ||||||
Parkway Life REIT | 381,600 | 810,185 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 74,306 | 1,547,051 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 221 |
FlexShares® Global Quality Real Estate Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Precinct Properties New Zealand Ltd.(a) | 819,274 | $ | 874,198 | |||||
Premier Investment Corp. | 848 | 1,049,959 | ||||||
Prologis, Inc. | 258,958 | 19,854,310 | ||||||
PS Business Parks, Inc. | 11,872 | 1,823,777 | ||||||
Public Storage | 1,908 | 422,011 | ||||||
Rayonier, Inc. | 74,730 | 2,375,667 | ||||||
Retail Properties of America, Inc., Class A | 124,126 | 1,525,509 | ||||||
RioCan REIT | 85,330 | 1,634,033 | ||||||
RPT Realty | 63,070 | 765,039 | ||||||
Sabra Health Care REIT, Inc.(a) | 102,926 | 2,013,233 | ||||||
Safestore Holdings plc(a) | 125,822 | 1,056,339 | ||||||
Scentre Group | 3,072,092 | 8,259,955 | ||||||
Segro plc | 585,326 | 5,176,600 | ||||||
Simon Property Group, Inc. | 48,124 | 8,359,139 | ||||||
SL Green Realty Corp. | 48,336 | 4,270,002 | ||||||
SmartCentres REIT(a) | 41,234 | 1,038,513 | ||||||
Societe Fonciere Lyonnaise SA | 1,802 | 131,671 | ||||||
Spirit Realty Capital, Inc. | 49,502 | 2,002,851 | ||||||
Sunlight REIT | 212,000 | 155,918 | ||||||
Sunstone Hotel Investors, Inc. | 131,758 | 1,897,315 | ||||||
Tritax Big Box REIT plc | 848,848 | 1,644,409 | ||||||
UNITE Group plc (The) | 151,898 | 1,865,366 | ||||||
VICI Properties, Inc. | 167,586 | 3,820,961 | ||||||
Weingarten Realty Investors | 70,066 | 2,027,710 | ||||||
259,779,771 | ||||||||
Household Durables – 0.4% | ||||||||
Iida Group Holdings Co. Ltd.(a) | 84,800 | 1,430,655 | ||||||
Industrial Conglomerates – 0.2% | ||||||||
Hopewell Holdings Ltd.(c) | 159,000 | 782,293 | ||||||
Real Estate Management & Development – 20.9% | ||||||||
ADO Properties SA(b) | 16,960 | 889,531 | ||||||
Aeon Mall Co. Ltd. | 63,600 | 973,059 | ||||||
Aroundtown SA | 449,758 | 3,642,220 | ||||||
Castellum AB | 157,516 | 2,829,118 | ||||||
City Developments Ltd. | 233,200 | 1,531,596 | ||||||
CK Asset Holdings Ltd. | 811,500 | 6,516,494 | ||||||
CLS Holdings plc | 243,800 | 765,970 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Daejan Holdings plc | 1,590 | $ | 120,223 | |||||
Daibiru Corp. | 63,600 | 561,336 | ||||||
Entra ASA(b) | 68,370 | 988,291 | ||||||
Fabege AB | 152,640 | 2,116,967 | ||||||
First Capital Realty, Inc. | 102,290 | 1,623,470 | ||||||
Heiwa Real Estate Co. Ltd. | 42,400 | 813,928 | ||||||
Helical plc | 21,624 | 96,974 | ||||||
Henderson Land Development Co. Ltd. | 760,530 | 4,682,183 | ||||||
HKR International Ltd.(a) | 169,600 | 93,605 | ||||||
Hongkong Land Holdings Ltd. | 678,400 | 4,728,448 | ||||||
Hufvudstaden AB, Class A | 64,342 | 1,070,697 | ||||||
Kenedix, Inc.(a) | 148,400 | 703,526 | ||||||
Kennedy-Wilson Holdings, Inc.(a) | 75,260 | 1,621,100 | ||||||
Kungsleden AB | 121,900 | 924,495 | ||||||
Leopalace21 Corp.(a) | 159,000 | 268,390 | ||||||
Nomura Real Estate Holdings, Inc. | 74,200 | 1,568,943 | ||||||
Olav Thon Eiendomsselskap ASA | 5,724 | 105,246 | ||||||
PSP Swiss Property AG (Registered) | 23,744 | 2,423,333 | ||||||
Realogy Holdings Corp.(a) | 68,370 | 890,177 | ||||||
St Joe Co. (The)* (a) | 44,732 | 762,233 | ||||||
St Modwen Properties plc | 163,240 | 874,640 | ||||||
Sumitomo Realty & Development Co. Ltd. | 205,100 | 7,555,783 | ||||||
Swire Pacific Ltd., Class A | 289,000 | 3,657,901 | ||||||
Swire Pacific Ltd., Class B | 530,000 | 1,049,813 | ||||||
Swire Properties Ltd. | 678,400 | 2,754,103 | ||||||
TAG Immobilien AG | 71,550 | 1,606,929 | ||||||
TOC Co. Ltd.(a) | 95,400 | 594,457 | ||||||
Tricon Capital Group, Inc. | 23,850 | 188,821 | ||||||
Vonovia SE | 70,384 | 3,507,765 | ||||||
Wharf Real Estate Investment Co. Ltd. | 366,000 | 2,803,758 | ||||||
Wihlborgs Fastigheter AB | 81,726 | 1,085,748 | ||||||
Wing Tai Holdings Ltd. | 95,400 | 143,675 | ||||||
Yanlord Land Group Ltd. | 583,000 | 625,316 | ||||||
69,760,262 | ||||||||
Total Common Stocks (Cost $293,744,634) | 331,752,981 |
See Accompanying Notes to the Financial Statements.
222 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Global Quality Real Estate Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(d) – 2.3% | ||||||||
REPURCHASE AGREEMENTS – 2.3% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $7,855,600, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $8,012,735 (Cost $7,855,000) | $ | 7,855,000 | $ | 7,855,000 | ||||
Total Investments – 101.5% (Cost $301,599,634) |
| 339,607,981 | ||||||
Liabilities in excess of other assets – (1.5%) |
| (5,011,814 | ) | |||||
NET ASSETS – 100.0% |
| $ | 334,596,167 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $13,138,627, collateralized in the form of cash with a value of $7,855,000 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $2,763,973 of collateral in the form of U.S. Government |
Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 15, 2019 – November 15, 2048 and $3,155,626 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from October 7, 2019 – July 22, 2068; a total value of $13,774,599. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Security fair valued as of April 30, 2019 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2019 amounted to $782,293, which represents approximately 0.23% of net assets of the Fund. |
(d) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $7,855,000. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 41,258,040 | ||
Aggregate gross unrealized depreciation | (4,197,228 | ) | ||
Net unrealized appreciation | $ | 37,060,812 | ||
Federal income tax cost | $ | 302,662,906 |
Futures Contracts
FlexShares® Global Quality Real Estate Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index | 8 | 06/21/2019 | EUR | $ | 309,492 | $ | 19,963 | |||||||||||||
Hang Seng Index | 3 | 05/30/2019 | HKD | 563,413 | (8,291 | ) | ||||||||||||||
S&P 500E-Mini Index | 3 | 06/21/2019 | USD | 442,275 | 19,804 | |||||||||||||||
S&P Midcap 400E-Mini Index | 7 | 06/21/2019 | USD | 1,381,380 | 65,812 | |||||||||||||||
SGX Nikkei 225 Index | 2 | 06/13/2019 | JPY | 200,449 | 9,615 | |||||||||||||||
SPI 200 Index | 5 | 06/20/2019 | AUD | 554,634 | 11,290 | |||||||||||||||
$ | 118,193 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 223 |
FlexShares® Global Quality Real Estate Index Fund (cont.)
Forward Foreign Currency Contracts | ||||||||||||||||||||||
FlexShares® Global Quality Real Estate Index Fund had the following outstanding contracts as of April 30, 2019: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 687,039 | Citibank NA | AUD | 970,173 | 06/19/2019 | $ | 3,367 | |||||||||||||||
USD | 60,209 | Morgan Stanley | CHF | 60,028 | 06/19/2019 | 1,019 | ||||||||||||||||
USD | 69,000 | Morgan Stanley | GBP | 51,742 | 06/19/2019 | 1,369 | ||||||||||||||||
USD | 1,000,000 | Toronto-Dominion Bank (The) | HKD | 7,827,450 | 06/19/2019 | 1,563 | ||||||||||||||||
USD | 148,910 | JPMorgan Chase Bank | JPY | 16,462,741 | 06/19/2019 | 498 | ||||||||||||||||
USD | 162,008 | Societe Generale | SGD | 219,304 | 06/19/2019 | 762 | ||||||||||||||||
Total unrealized appreciation |
| $ | 8,578 | |||||||||||||||||||
AUD | 983,543 | JPMorgan Chase Bank | USD | 700,000 | 06/19/2019 | $ | (6,905 | ) | ||||||||||||||
CAD | 72,402 | Citibank NA | USD | 54,446 | 06/19/2019 | (555 | ) | |||||||||||||||
EUR | 18,716 | Morgan Stanley | USD | 21,339 | 06/19/2019 | (274 | ) | |||||||||||||||
GBP | 97,024 | Morgan Stanley | USD | 128,768 | 06/19/2019 | (1,951 | ) | |||||||||||||||
HKD | 2,342,842 | Goldman Sachs & Co. | USD | 299,159 | 06/19/2019 | (316 | ) | |||||||||||||||
SGD | 216,205 | Toronto-Dominion Bank (The) | USD | 160,000 | 06/19/2019 | (1,033 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (11,034 | ) | ||||||||||||||||||
Net unrealized depreciation |
| $ | (2,456 | ) |
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
JPY – Japanese Yen
SGD – Singapore Dollar
USD – US Dollar
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, 2019:
Australia | 5.4 | % | ||
Canada | 3.3 | |||
France | 1.2 | |||
Germany | 3.3 | |||
Hong Kong | 11.3 | |||
Ireland | 0.3 | |||
Japan | 9.0 | |||
New Zealand | 0.5 | |||
Norway | 0.3 | |||
Singapore | 3.0 | |||
Spain | 1.4 | |||
Sweden | 2.4 | |||
Switzerland | 0.7 | |||
United Kingdom | 5.9 | |||
United States | 51.2 | |||
Other1 | 0.8 | |||
100.0 | % |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
224 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Real Assets Allocation Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS – 100.0% | ||||||||
FlexShares® Global Quality Real Estate Index Fund(a) | 64,540 | $ | 4,086,673 | |||||
FlexShares® Global Upstream Natural Resources Index Fund(a) | 30,366 | 998,130 | ||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund(a) | 101,724 | 5,111,631 | ||||||
Total Exchange Traded Funds (Cost $9,845,644) | 10,196,434 | |||||||
Total Investments – 100.0% (Cost $9,845,644) |
| 10,196,434 | ||||||
Other Assets Less Liabilities – 0.0%(b) |
| 1,170 | ||||||
NET ASSETS – 100.0% |
| $ | 10,197,604 |
(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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 335,243 | ||
Aggregate gross unrealized depreciation | — | |||
Net unrealized appreciation | $ | 335,243 | ||
Federal income tax cost | $ | 9,861,191 |
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 ended April 30, 2019, was as follows:
Security | Value October 31, 2018 | Purchases at Cost | Sales Proceeds | Shares April 30, 2019 | Value April 30, 2019 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain | ||||||||||||||||||||||||
FlexShares® Global Quality Real Estate Index Fund | $ | 5,511,512 | $ | 130,526 | $ | 2,004,212 | 64,540 | $ | 4,086,673 | $ | 346,580 | $ | 75,777 | $ | 102,267 | |||||||||||||||||
FlexShares® Global Upstream Natural Resources Index Fund | 1,361,164 | 65,510 | 473,627 | 30,366 | 998,130 | (10,237 | ) | 18,525 | 55,320 | |||||||||||||||||||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund | 7,009,193 | 83,488 | 2,657,507 | 101,724 | 5,111,631 | 561,821 | 71,461 | 114,636 | ||||||||||||||||||||||||
$ | 13,881,869 | $ | 279,524 | $ | 5,135,346 | 196,630 | $ | 10,196,434 | $ | 898,164 | $ | 165,763 | $ | 272,223 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 225 |
Schedule of Investments
FlexShares® Quality Dividend Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.4% | ||||||||
Aerospace & Defense – 2.2% | ||||||||
Boeing Co. (The) | 38,269 | $ | 14,453,819 | |||||
Lockheed Martin Corp. | 74,976 | 24,991,750 | ||||||
39,445,569 | ||||||||
Airlines – 0.3% | ||||||||
Copa Holdings SA, Class A | 70,290 | 5,852,345 | ||||||
Banks – 3.1% | ||||||||
Bank of America Corp. | 343,640 | 10,508,511 | ||||||
Bank of NT Butterfield & Son Ltd. (The)(a) | 171,820 | 6,876,236 | ||||||
Citigroup, Inc. | 60,918 | 4,306,903 | ||||||
JPMorgan Chase & Co. | 179,630 | 20,846,062 | ||||||
Wells Fargo & Co. | 269,445 | 13,043,832 | ||||||
55,581,544 | ||||||||
Beverages – 0.7% | ||||||||
Coca-Cola Co. (The) | 148,390 | 7,280,013 | ||||||
PepsiCo, Inc. | 43,736 | 5,600,395 | ||||||
12,880,408 | ||||||||
Biotechnology – 1.6% | ||||||||
AbbVie, Inc. | 371,756 | 29,513,709 | ||||||
Capital Markets – 4.3% | ||||||||
Ameriprise Financial, Inc. | 71,071 | 10,431,091 | ||||||
BGC Partners, Inc., Class A(a) | 388,157 | 2,096,048 | ||||||
Eaton Vance Corp.(a) | 224,147 | 9,317,791 | ||||||
Evercore, Inc., Class A | 144,485 | 14,077,173 | ||||||
Franklin Resources, Inc.(a) | 7,029 | 243,133 | ||||||
Invesco Ltd. | 205,403 | 4,512,704 | ||||||
Janus Henderson Group plc(a) | 392,843 | 9,848,574 | ||||||
LPL Financial Holdings, Inc. | 45,087 | 3,340,496 | ||||||
T. Rowe Price Group, Inc. | 148,390 | 15,951,925 | ||||||
TD Ameritrade Holding Corp. | 146,047 | 7,679,151 | ||||||
77,498,086 |
Investments | Shares | Value | ||||||
Chemicals – 2.0% | ||||||||
Chemours Co. (The) | 277,255 | $ | 9,983,953 | |||||
Huntsman Corp. | 483,439 | 10,751,683 | ||||||
LyondellBasell Industries NV, Class A | 108,559 | 9,578,161 | ||||||
Trinseo SA | 106,997 | 4,809,515 | ||||||
35,123,312 | ||||||||
Communications Equipment – 3.7% | ||||||||
Cisco Systems, Inc. | 1,185,558 | 66,331,970 | ||||||
Consumer Finance – 1.8% | ||||||||
Navient Corp.(a) | 678,689 | 9,169,088 | ||||||
Santander Consumer USA Holdings, Inc. | 325,677 | 6,953,204 | ||||||
Synchrony Financial | 485,782 | 16,842,062 | ||||||
32,964,354 | ||||||||
Diversified Consumer Services – 0.2% | ||||||||
H&R Block, Inc.(a) | 106,216 | 2,890,137 | ||||||
Diversified Telecommunication Services – 3.0% | ||||||||
AT&T, Inc. | 636,515 | 19,706,504 | ||||||
Verizon Communications, Inc. | 584,188 | 33,409,712 | ||||||
53,116,216 | ||||||||
Electric Utilities – 3.2% | ||||||||
Edison International | 180,411 | 11,504,810 | ||||||
Exelon Corp. | 260,854 | 13,290,511 | ||||||
NextEra Energy, Inc. | 94,501 | 18,374,774 | ||||||
Portland General Electric Co. | 160,886 | 8,415,947 | ||||||
PPL Corp. | 165,572 | 5,167,502 | ||||||
56,753,544 | ||||||||
Electrical Equipment – 0.2% | ||||||||
Rockwell Automation, Inc. | 21,868 | 3,951,766 | ||||||
Electronic Equipment, Instruments & Components – 0.7% | ||||||||
CDW Corp. | 118,712 | 12,535,987 | ||||||
Energy Equipment & Services – 0.5% | ||||||||
RPC, Inc.(a) | 857,538 | 8,824,066 |
See Accompanying Notes to the Financial Statements.
226 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Entertainment – 0.6% | ||||||||
Activision Blizzard, Inc. | 58,575 | $ | 2,823,901 | |||||
Viacom, Inc., Class B | 1,562 | 45,157 | ||||||
Walt Disney Co. (The) | 62,496 | 8,560,077 | ||||||
11,429,135 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 6.6% | ||||||||
Apple Hospitality REIT, Inc. | 147,609 | 2,428,168 | ||||||
Brixmor Property Group, Inc.(a) | 460,009 | 8,224,961 | ||||||
Host Hotels & Resorts, Inc.(a) | 709,148 | 13,644,007 | ||||||
Iron Mountain, Inc.(a) | 240,548 | 7,812,999 | ||||||
Kimco Realty Corp.(a) | 640,420 | 11,136,904 | ||||||
Lamar Advertising Co., Class A(a) | 129,646 | 10,717,835 | ||||||
Medical Properties Trust, Inc.(a) | 448,294 | 7,827,213 | ||||||
Park Hotels & Resorts, Inc. | 397,529 | 12,752,730 | ||||||
Public Storage | 42,955 | 9,500,787 | ||||||
Retail Properties of America, Inc., Class A | 304,590 | 3,743,411 | ||||||
Senior Housing Properties Trust | 639,639 | 5,136,301 | ||||||
Simon Property Group, Inc. | 53,108 | 9,224,860 | ||||||
Spirit Realty Capital, Inc. | 231,957 | 9,384,980 | ||||||
Weingarten Realty Investors(a) | 243,672 | 7,051,868 | ||||||
118,587,024 | ||||||||
Food & Staples Retailing – 0.1% | ||||||||
Walmart, Inc. | 17,182 | 1,766,997 | ||||||
Gas Utilities – 0.5% | ||||||||
National Fuel Gas Co.(a) | 150,733 | 8,924,901 | ||||||
Health Care Equipment & Supplies – 0.1% | ||||||||
ResMed, Inc. | 14,839 | 1,550,824 | ||||||
Health Care Providers & Services – 2.0% | ||||||||
AmerisourceBergen Corp. | 115,588 | 8,641,359 | ||||||
Cardinal Health, Inc. | 189,002 | 9,206,287 | ||||||
McKesson Corp. | 70,290 | 8,382,083 | ||||||
UnitedHealth Group, Inc. | 39,831 | 9,283,411 | ||||||
35,513,140 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – 0.9% | ||||||||
Las Vegas Sands Corp. | 64,823 | $ | 4,346,382 | |||||
Wyndham Destinations, Inc. | 280,379 | 12,213,309 | ||||||
16,559,691 | ||||||||
Household Products – 1.4% | ||||||||
Clorox Co. (The)(a) | 35,145 | 5,613,711 | ||||||
Kimberly-Clark Corp. | 114,026 | 14,638,658 | ||||||
Procter & Gamble Co. (The) | 52,327 | 5,571,779 | ||||||
25,824,148 | ||||||||
Industrial Conglomerates – 1.9% | ||||||||
3M Co. | 178,068 | 33,745,667 | ||||||
Insurance – 2.9% | ||||||||
Aflac, Inc. | 295,218 | 14,873,083 | ||||||
Allstate Corp. (The) | 103,873 | 10,289,659 | ||||||
Principal Financial Group, Inc.(a) | 184,316 | 10,535,503 | ||||||
Prudential Financial, Inc. | 49,203 | 5,201,249 | ||||||
Travelers Cos., Inc. (The)(a) | 79,662 | 11,451,412 | ||||||
52,350,906 | ||||||||
IT Services – 5.5% | ||||||||
Accenture plc, Class A | 203,841 | 37,235,635 | ||||||
Broadridge Financial Solutions, Inc. | 90,596 | 10,702,106 | ||||||
International Business Machines Corp. | 282,722 | 39,657,415 | ||||||
Mastercard, Inc., Class A | 14,058 | 3,574,106 | ||||||
Visa, Inc., Class A(a) | 49,203 | 8,090,449 | ||||||
99,259,711 | ||||||||
Machinery – 2.7% | ||||||||
Caterpillar, Inc. | 156,200 | 21,777,404 | ||||||
Cummins, Inc. | 73,414 | 12,208,014 | ||||||
Illinois Tool Works, Inc.(a) | 87,472 | 13,613,268 | ||||||
47,598,686 | ||||||||
Media – 1.9% | ||||||||
CBS Corp.(Non-Voting), Class B | 206,965 | 10,611,095 | ||||||
Comcast Corp., Class A | 160,886 | 7,003,368 | ||||||
Fox Corp., Class B* | 61,961 | 2,385,498 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 227 |
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Interpublic Group of Cos., Inc. (The)(a) | 440,484 | $ | 10,131,132 | |||||
Omnicom Group, Inc.(a) | 42,955 | 3,437,689 | ||||||
33,568,782 | ||||||||
Metals & Mining – 0.8% | ||||||||
Nucor Corp. | 142,142 | 8,112,044 | ||||||
Steel Dynamics, Inc. | 196,812 | 6,235,004 | ||||||
14,347,048 | ||||||||
Multiline Retail – 1.5% | ||||||||
Kohl’s Corp.(a) | 200,717 | 14,270,979 | ||||||
Macy’s, Inc. | 324,896 | 7,648,052 | ||||||
Nordstrom, Inc.(a) | 133,551 | 5,478,262 | ||||||
27,397,293 | ||||||||
Multi-Utilities – 2.4% | ||||||||
Black Hills Corp. | 135,113 | 9,830,822 | ||||||
CenterPoint Energy, Inc.(a) | 322,553 | 9,999,143 | ||||||
MDU Resources Group, Inc. | 196,031 | 5,126,210 | ||||||
NorthWestern Corp. | 246,015 | 17,184,148 | ||||||
42,140,323 | ||||||||
Oil, Gas & Consumable Fuels – 7.3% | ||||||||
Chevron Corp. | 206,965 | 24,848,218 | ||||||
CVR Energy, Inc. | 206,184 | 9,404,052 | ||||||
Equitrans Midstream Corp.(a) | 54,670 | 1,138,776 | ||||||
Exxon Mobil Corp. | 521,708 | 41,882,718 | ||||||
HollyFrontier Corp. | 209,308 | 9,990,271 | ||||||
Occidental Petroleum Corp. | 39,050 | 2,299,264 | ||||||
PBF Energy, Inc., Class A | 331,925 | 11,146,042 | ||||||
Phillips 66(a) | 136,675 | 12,884,352 | ||||||
Plains GP Holdings LP, Class A* (a) | 142,142 | 3,354,551 | ||||||
Valero Energy Corp. | 148,390 | 13,453,038 | ||||||
130,401,282 | ||||||||
Pharmaceuticals – 6.9% | ||||||||
Johnson & Johnson | 454,542 | 64,181,330 | ||||||
Merck & Co., Inc. | 378,004 | 29,752,695 | ||||||
Pfizer, Inc. | 731,016 | 29,686,560 | ||||||
123,620,585 |
Investments | Shares | Value | ||||||
Professional Services – 0.6% | ||||||||
ManpowerGroup, Inc. | 110,902 | $ | 10,651,028 | |||||
Semiconductors & Semiconductor Equipment – 6.1% | ||||||||
Broadcom, Inc. | 121,055 | 38,543,912 | ||||||
Intel Corp. | 217,118 | 11,081,703 | ||||||
KLA-Tencor Corp.(a) | 108,559 | 13,839,101 | ||||||
Lam Research Corp.(a) | 35,926 | 7,452,130 | ||||||
Texas Instruments, Inc. | 325,677 | 38,374,521 | ||||||
109,291,367 | ||||||||
Software – 4.4% | ||||||||
Intuit, Inc. | 68,728 | 17,254,852 | ||||||
Microsoft Corp. | 452,980 | 59,159,188 | ||||||
Oracle Corp.(a) | 47,641 | 2,635,976 | ||||||
79,050,016 | ||||||||
Specialty Retail – 4.7% | ||||||||
Best Buy Co., Inc. | 203,060 | 15,109,695 | ||||||
Foot Locker, Inc. | 172,601 | 9,874,503 | ||||||
Gap, Inc. (The)(a) | 303,809 | 7,923,339 | ||||||
Home Depot, Inc. (The) | 214,775 | 43,749,667 | ||||||
Signet Jewelers Ltd.(a) | 2,343 | 54,311 | ||||||
Williams-Sonoma, Inc.(a) | 126,522 | 7,233,263 | ||||||
83,944,778 | ||||||||
Technology Hardware, Storage & Peripherals – 3.8% | ||||||||
Apple, Inc. | 206,184 | 41,374,943 | ||||||
HP, Inc. | 693,528 | 13,835,884 | ||||||
Seagate Technology plc(a) | 248,358 | 12,000,659 | ||||||
67,211,486 | ||||||||
Textiles, Apparel & Luxury Goods – 0.6% | ||||||||
VF Corp. | 113,245 | 10,691,461 | ||||||
Tobacco – 3.5% | ||||||||
Altria Group, Inc. | 395,967 | 21,512,887 | ||||||
Philip Morris International, Inc. | 472,505 | 40,900,033 | ||||||
62,412,920 | ||||||||
Trading Companies & Distributors – 1.2% | ||||||||
Fastenal Co. | 138,237 | 9,752,620 | ||||||
WW Grainger, Inc. | 43,736 | 12,333,552 | ||||||
22,086,172 | ||||||||
Total Common Stocks (Cost $1,465,328,259) |
| 1,763,188,384 |
See Accompanying Notes to the Financial Statements.
228 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(b) – 8.3% | ||||||||
CERTIFICATES OF DEPOSIT – 5.6% | ||||||||
ABN AMRO Bank NV | $ | 5,000,000 | $ | 4,976,750 | ||||
Bank of Montreal, Chicago | ||||||||
(SOFR + 0.44%), 2.78%, 5/9/2019(c) | 3,000,000 | 3,000,095 | ||||||
(ICE LIBOR USD 1 Month + 0.33%), 2.80%, 8/6/2019(c) | 5,000,000 | 5,003,380 | ||||||
Bank of Nova Scotia, Houston | ||||||||
(SOFR + 0.43%), 2.91%, 5/16/2019(c) | 2,000,000 | 2,000,000 | ||||||
(ICE LIBOR USD 3 Month + 0.22%), 2.67%, 12/30/2019(c) | 3,000,000 | 3,002,916 | ||||||
Barclays Bank plc, New York | 4,000,000 | 4,001,712 | ||||||
Canadian Imperial Bank of Commerce, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.25%), | 5,000,000 | 5,003,225 | ||||||
Cooperatieve Rabobank UA, London | ||||||||
(ICE LIBOR USD 1 Month + 0.19%), 2.67%, 4/24/2020(c) | 5,000,000 | 5,000,000 | ||||||
Credit Agricole CIB, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), 2.70%, 12/20/2019(c) | 5,000,000 | 5,001,230 | ||||||
KBC Bank NV, Brussels | 5,000,000 | 5,000,000 | ||||||
Mitsubishi UFJ Trust & Banking Corp., New York | 2,000,000 | 1,999,880 | ||||||
MUFG Bank Ltd., New York Branch | ||||||||
(ICE LIBOR USD 3 Month + 0.10%), 2.68%, 10/24/2019(c) | 2,500,000 | 2,499,540 |
Investments | Principal Amount | Value | ||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Nationwide Building Society | $ | 5,000,000 | $ | 4,979,714 | ||||
Royal Bank of Canada, New York | ||||||||
(ICE LIBOR USD 1 Month + 0.21%), | 3,000,000 | 3,001,263 | ||||||
Shizuoka Bank Ltd., New York | 5,000,000 | 5,000,000 | ||||||
Societe Generale, New York | ||||||||
(ICE LIBOR USD | 4,000,000 | 4,002,344 | ||||||
(ICE LIBOR USD 3 Month + 0.20%), 2.72%, 8/21/2019(c) | 3,000,000 | 3,002,109 | ||||||
Standard Chartered, New York | 4,000,000 | 4,001,288 | ||||||
Sumitomo Mitsui Trust Bank Ltd., New York | 4,000,000 | 4,000,332 | ||||||
Svenska Handelsbanken, New York | ||||||||
(ICE LIBOR USD | 5,000,000 | 5,000,715 | ||||||
The Chiba Bank Ltd., | 5,000,000 | 5,000,000 | ||||||
The Sumitomo Bank Ltd., | ||||||||
(ICE LIBOR USD | 4,000,000 | 4,000,000 | ||||||
Toronto-Dominion Bank, New York | 2,000,000 | 2,000,000 | ||||||
(ICE LIBOR USD 1 Month + 0.21%), | 3,000,000 | 3,001,380 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 229 |
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Wells Fargo Bank (San Francisco) NA | ||||||||
(ICE LIBOR USD | $ | 3,000,000 | $ | 3,000,000 | ||||
Westpac Banking Corp., New York | ||||||||
(US Federal Funds Effective Rate (continuous series) + 0.30%), 2.75%, 2/14/2020(c) | 4,000,000 | 3,999,985 | ||||||
Total Certificates of Deposit (Cost $100,462,901) |
| 100,477,858 | ||||||
COMMERCIAL PAPER – 0.5% | ||||||||
National Bank of Canada | ||||||||
(ICE LIBOR USD | 5,000,000 | 5,000,000 | ||||||
Toyota Motor Credit Corp. | 5,000,000 | 4,957,575 | ||||||
Total Commercial Paper (Cost $9,956,333) |
| 9,957,575 | ||||||
REPURCHASE AGREEMENTS – 2.2% | ||||||||
Citadel Clearing LLC, 3.03%, dated 4/30/2019, due 7/31/2019, repurchase price $5,038,716, collateralized by various Common Stocks; total market value $5,515,709 | 5,000,000 | 5,000,000 |
Investments | Principal Amount | Value | ||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Citigroup Global Markets Ltd., 2.43%, dated 4/30/2019, due 5/1/2019, repurchase price $18,001,215, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 2.13%, maturing 9/5/2019 – 3/31/2024; total market value $18,358,292 | $ | 18,000,000 | $ | 18,000,000 | ||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $8,336,258, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $8,503,007 | 8,335,621 | 8,335,621 | ||||||
ML Pierce Fenner & Smith, Inc., 2.97%, dated 4/30/2019, due 7/31/2019, repurchase price $8,060,720, collateralized by various Common Stocks; total market value $8,846,125 | 8,000,000 | 8,000,000 | ||||||
Total Repurchase Agreements (Cost $39,335,621) |
| 39,335,621 | ||||||
Total Securities Lending Reinvestments (Cost $149,754,855) |
| 149,771,054 | ||||||
Total Investments – 106.7% (Cost $1,615,083,114) |
| 1,912,959,438 | ||||||
Liabilities in excess of other assets – (6.7%) |
| (120,723,599 | ) | |||||
NET ASSETS – 100.0% |
| $ | 1,792,235,839 |
See Accompanying Notes to the Financial Statements.
230 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Quality Dividend Index Fund (cont.)
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $178,660,300, collateralized in the form of cash with a value of $149,698,267 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $29,319,559 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 9, 2019 – November 15, 2048 and $3,505,430 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from July 15, 2019 – July 22, 2068; a total value of $182,523,256. |
(b) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $149,771,054. |
(c) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2019. |
(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. |
Percentages shown are based on Net Assets.
Abbreviations
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
SOFR – Secured Overnight Financing Rate
USD – US Dollar
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 311,768,208 | ||
Aggregate gross unrealized depreciation | (12,080,198 | ) | ||
Net unrealized appreciation | $ | 299,688,010 | ||
Federal income tax cost | $ | 1,614,768,239 |
Futures Contracts
FlexShares® Quality Dividend Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500E-Mini Index | 196 | 06/21/2019 | USD | $ | 28,895,300 | $ | 1,496,811 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 231 |
Schedule of Investments
FlexShares® Quality Dividend Defensive Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.4% | ||||||||
Aerospace & Defense – 2.2% | ||||||||
Boeing Co. (The) | 6,346 | $ | 2,396,821 | |||||
Lockheed Martin Corp. | 17,535 | 5,844,941 | ||||||
8,241,762 | ||||||||
Air Freight & Logistics – 0.8% | ||||||||
CH Robinson Worldwide, Inc. | 16,032 | 1,298,592 | ||||||
Expeditors International of Washington, Inc.(a) | 20,541 | 1,631,366 | ||||||
2,929,958 | ||||||||
Auto Components – 0.2% | ||||||||
Delphi Technologies plc | 31,428 | 695,502 | ||||||
Banks – 2.9% | ||||||||
Bank of America Corp. | 68,303 | 2,088,706 | ||||||
Bank of Hawaii Corp.(a) | 16,366 | 1,348,231 | ||||||
Citigroup, Inc. | 6,179 | 436,855 | ||||||
Fifth Third Bancorp | 35,070 | 1,010,717 | ||||||
Investors Bancorp, Inc.(a) | 13,694 | 160,905 | ||||||
JPMorgan Chase & Co. | 31,062 | 3,604,745 | ||||||
Wells Fargo & Co. | 50,935 | 2,465,763 | ||||||
11,115,922 | ||||||||
Beverages – 0.9% | ||||||||
Coca-Cola Co. (The) | 11,189 | 548,932 | ||||||
PepsiCo, Inc. | 21,877 | 2,801,350 | ||||||
3,350,282 | ||||||||
Biotechnology – 1.8% | ||||||||
AbbVie, Inc. | 87,675 | 6,960,518 | ||||||
Capital Markets – 2.6% | ||||||||
BGC Partners, Inc., Class A(a) | 47,595 | 257,013 | ||||||
Intercontinental Exchange, Inc. | 7,348 | 597,760 | ||||||
Janus Henderson Group plc(a) | 74,983 | 1,879,824 | ||||||
MarketAxess Holdings, Inc.(a) | 8,350 | 2,324,055 | ||||||
MSCI, Inc. | 11,523 | 2,597,054 | ||||||
T. Rowe Price Group, Inc. | 18,537 | 1,992,727 | ||||||
Virtu Financial, Inc., Class A | 18,203 | 447,430 | ||||||
10,095,863 |
Investments | Shares | Value | ||||||
Chemicals – 0.6% | ||||||||
LyondellBasell Industries NV, Class A | 24,883 | $ | 2,195,427 | |||||
Commercial Services & Supplies – 0.4% | ||||||||
Rollins, Inc.(a) | 38,577 | 1,491,773 | ||||||
Communications Equipment – 4.1% | ||||||||
Cisco Systems, Inc. | 240,814 | 13,473,544 | ||||||
Motorola Solutions, Inc. | 15,197 | 2,202,197 | ||||||
15,675,741 | ||||||||
Consumer Finance – 1.2% | ||||||||
Santander Consumer USA Holdings, Inc. | 74,148 | 1,583,060 | ||||||
Synchrony Financial | 83,834 | 2,906,525 | ||||||
4,489,585 | ||||||||
Diversified Consumer Services – 0.5% | ||||||||
H&R Block, Inc.(a) | 71,142 | 1,935,774 | ||||||
Diversified Telecommunication Services – 2.4% | ||||||||
AT&T, Inc. | 160,988 | 4,984,188 | ||||||
Verizon Communications, Inc. | 74,315 | 4,250,075 | ||||||
9,234,263 | ||||||||
Electric Utilities – 4.1% | ||||||||
Edison International | 33,400 | 2,129,918 | ||||||
Exelon Corp. | 67,969 | 3,463,020 | ||||||
NextEra Energy, Inc. | 20,875 | 4,058,935 | ||||||
Portland General Electric Co. | 40,080 | 2,096,585 | ||||||
PPL Corp. | 72,144 | 2,251,614 | ||||||
Southern Co. (The) | 30,394 | 1,617,569 | ||||||
15,617,641 | ||||||||
Electronic Equipment, Instruments & Components – 0.7% | ||||||||
CDW Corp. | 23,881 | 2,521,834 | ||||||
Jabil, Inc. | 8,262 | 249,595 | ||||||
2,771,429 | ||||||||
Energy Equipment & Services – 0.5% | ||||||||
RPC, Inc.(a) | 167,668 | 1,725,304 |
See Accompanying Notes to the Financial Statements.
232 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Entertainment – 1.4% | ||||||||
Activision Blizzard, Inc. | 50,267 | $ | 2,423,372 | |||||
Cinemark Holdings, Inc. | 17,368 | 730,325 | ||||||
Walt Disney Co. (The) | 15,364 | 2,104,407 | ||||||
5,258,104 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 5.4% | ||||||||
Apple Hospitality REIT, Inc. | 18,036 | 296,692 | ||||||
Brixmor Property Group, Inc.(a) | 121,075 | 2,164,821 | ||||||
CubeSmart | 501 | 15,987 | ||||||
EPR Properties | 17,535 | 1,382,810 | ||||||
HCP, Inc. | 51,102 | 1,521,818 | ||||||
Healthcare Trust of America, Inc., Class A | 63,794 | 1,759,438 | ||||||
Iron Mountain, Inc.(a) | 56,112 | 1,822,518 | ||||||
Kimco Realty Corp.(a) | 173,012 | 3,008,679 | ||||||
Medical Properties Trust, Inc.(a) | 138,610 | 2,420,131 | ||||||
Omega Healthcare Investors, Inc.(a) | 4,050 | 143,329 | ||||||
Public Storage | 5,177 | 1,145,049 | ||||||
Retail Properties of America, Inc., Class A | 28,724 | 353,018 | ||||||
Senior Housing Properties Trust | 47,094 | 378,165 | ||||||
Simon Property Group, Inc. | 3,173 | 551,150 | ||||||
Spirit Realty Capital, Inc. | 47,595 | 1,925,694 | ||||||
Uniti Group, Inc.(a) | 167 | 1,835 | ||||||
Weingarten Realty Investors | 63,126 | 1,826,866 | ||||||
20,718,000 | ||||||||
Food & Staples Retailing – 1.9% | ||||||||
Sysco Corp. | 28,557 | 2,009,556 | ||||||
Walmart, Inc. | 50,434 | 5,186,633 | ||||||
7,196,189 | ||||||||
Food Products – 0.6% | ||||||||
Flowers Foods, Inc.(a) | 18,203 | 395,733 | ||||||
Kellogg Co. | 32,398 | 1,953,600 | ||||||
2,349,333 | ||||||||
Health Care Equipment & Supplies – 0.3% | ||||||||
ResMed, Inc. | 10,020 | 1,047,190 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – 1.8% | ||||||||
AmerisourceBergen Corp. | 14,696 | $ | 1,098,673 | |||||
Anthem, Inc. | 2,222 | 584,453 | ||||||
Cardinal Health, Inc. | 9,519 | 463,670 | ||||||
UnitedHealth Group, Inc. | 19,539 | 4,553,955 | ||||||
6,700,751 | ||||||||
Hotels, Restaurants & Leisure – 3.1% | ||||||||
Darden Restaurants, Inc. | 3,381 | 397,606 | ||||||
McDonald’s Corp. | 8,350 | 1,649,709 | ||||||
Starbucks Corp. | 85,170 | 6,616,006 | ||||||
Wyndham Destinations, Inc. | 41,583 | 1,811,355 | ||||||
Yum! Brands, Inc. | 11,857 | 1,237,752 | ||||||
11,712,428 | ||||||||
Household Products – 2.7% | ||||||||
Clorox Co. (The) | 11,690 | 1,867,244 | ||||||
Colgate-Palmolive Co. | 52,772 | 3,841,274 | ||||||
Kimberly-Clark Corp. | 23,881 | 3,065,843 | ||||||
Procter & Gamble Co. (The) | 14,195 | 1,511,483 | ||||||
10,285,844 | ||||||||
Industrial Conglomerates – 0.9% | ||||||||
3M Co. | 17,869 | 3,386,354 | ||||||
Insurance – 5.1% | ||||||||
Aflac, Inc. | 50,434 | 2,540,865 | ||||||
Allstate Corp. (The) | 16,700 | 1,654,302 | ||||||
Everest Re Group Ltd. | 7,849 | 1,848,440 | ||||||
Fidelity National Financial, Inc. | 54,609 | 2,181,630 | ||||||
First American Financial Corp. | 37,241 | 2,124,971 | ||||||
Marsh & McLennan Cos., Inc. | 29,058 | 2,739,879 | ||||||
Principal Financial Group, Inc. | 20,040 | 1,145,486 | ||||||
Progressive Corp. (The) | 37,742 | 2,949,537 | ||||||
Reinsurance Group of America, Inc. | 14,529 | 2,201,289 | ||||||
19,386,399 | ||||||||
IT Services – 3.7% | ||||||||
Broadridge Financial Solutions, Inc. | 16,199 | 1,913,588 | ||||||
International Business Machines Corp. | 50,434 | 7,074,377 | ||||||
Mastercard, Inc., Class A | 2,839 | 721,787 | ||||||
Paychex, Inc. | 16,700 | 1,407,977 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 233 |
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
Visa, Inc., Class A(a) | 7,014 | $ | 1,153,312 | |||||
Western Union Co. (The)(a) | 95,190 | 1,850,494 | ||||||
14,121,535 | ||||||||
Machinery – 0.9% | ||||||||
Cummins, Inc. | 10,187 | 1,693,996 | ||||||
Toro Co. (The)(a) | 22,378 | 1,636,951 | ||||||
3,330,947 | ||||||||
Media – 1.4% | ||||||||
CBS Corp.(Non-Voting), Class B | 7,849 | 402,418 | ||||||
Comcast Corp., Class A | 1,002 | 43,617 | ||||||
Fox Corp., Class B* | 15,306 | 589,281 | ||||||
Interpublic Group of Cos., Inc. (The) | 74,315 | 1,709,245 | ||||||
Omnicom Group, Inc.(a) | 7,849 | 628,156 | ||||||
Tribune Media Co., Class A | 40,247 | 1,859,411 | ||||||
5,232,128 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.6% | ||||||||
Chimera Investment Corp.(a) | 98,530 | 1,888,820 | ||||||
New Residential Investment Corp. | 23,046 | 387,403 | ||||||
2,276,223 | ||||||||
Multiline Retail – 1.6% | ||||||||
Kohl’s Corp.(a) | 40,247 | 2,861,562 | ||||||
Macy’s, Inc. | 74,649 | 1,757,237 | ||||||
Nordstrom, Inc.(a) | 39,078 | 1,602,980 | ||||||
6,221,779 | ||||||||
Multi-Utilities – 2.2% | ||||||||
Black Hills Corp. | 19,372 | 1,409,507 | ||||||
CenterPoint Energy, Inc. | 54,943 | 1,703,233 | ||||||
Consolidated Edison, Inc. | 5,678 | 489,216 | ||||||
DTE Energy Co. | 11,690 | 1,469,550 | ||||||
NorthWestern Corp. | 48,096 | 3,359,506 | ||||||
8,431,012 | ||||||||
Oil, Gas & Consumable Fuels – 7.3% | ||||||||
Chevron Corp. | 38,076 | 4,571,405 | ||||||
CVR Energy, Inc. | 38,410 | 1,751,880 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Equitrans Midstream Corp.(a) | 16,032 | $ | 333,946 | |||||
Exxon Mobil Corp. | 147,127 | 11,811,356 | ||||||
HollyFrontier Corp.(a) | 38,410 | 1,833,309 | ||||||
Occidental Petroleum Corp. | 20,374 | 1,199,621 | ||||||
Phillips 66 | 13,861 | 1,306,676 | ||||||
Plains GP Holdings LP, Class A* | 85,838 | 2,025,777 | ||||||
Valero Energy Corp. | 34,903 | 3,164,306 | ||||||
27,998,276 | ||||||||
Pharmaceuticals – 6.7% | ||||||||
Johnson & Johnson | 99,198 | 14,006,758 | ||||||
Merck & Co., Inc. | 68,804 | 5,415,563 | ||||||
Pfizer, Inc. | 149,465 | 6,069,774 | ||||||
25,492,095 | ||||||||
Professional Services – 0.1% | ||||||||
Nielsen Holdings plc | 2,004 | 51,162 | ||||||
Thomson Reuters Corp. | 7,082 | 437,951 | ||||||
489,113 | ||||||||
Semiconductors & Semiconductor Equipment – 6.4% | ||||||||
Broadcom, Inc. | 27,388 | 8,720,339 | ||||||
Intel Corp. | 33,400 | 1,704,736 | ||||||
KLA-Tencor Corp. | 14,863 | 1,894,735 | ||||||
Lam Research Corp. | 11,022 | 2,286,294 | ||||||
Skyworks Solutions, Inc. | 24,048 | 2,120,553 | ||||||
Texas Instruments, Inc. | 64,629 | 7,615,235 | ||||||
24,341,892 | ||||||||
Software – 4.1% | ||||||||
CDK Global, Inc.(a) | 25,551 | 1,541,236 | ||||||
j2 Global, Inc.(a) | 19,539 | 1,712,007 | ||||||
Microsoft Corp. | 93,186 | 12,170,092 | ||||||
Oracle Corp. | 501 | 27,720 | ||||||
15,451,055 | ||||||||
Specialty Retail – 5.0% | ||||||||
Aaron’s, Inc.(a) | 31,396 | 1,748,443 | ||||||
Dick’s Sporting Goods, Inc.(a) | 47,595 | 1,761,015 | ||||||
Foot Locker, Inc. | 50,267 | 2,875,775 | ||||||
Gap, Inc. (The)(a) | 69,806 | 1,820,540 | ||||||
Home Depot, Inc. (The) | 36,740 | 7,483,938 |
See Accompanying Notes to the Financial Statements.
234 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
L Brands, Inc. | 67,301 | $ | 1,725,598 | |||||
Signet Jewelers Ltd.(a) | 68,971 | 1,598,748 | ||||||
19,014,057 | ||||||||
Technology Hardware, Storage & Peripherals – 3.6% | ||||||||
Apple, Inc. | 53,273 | 10,690,293 | ||||||
HP, Inc. | 29,432 | 587,168 | ||||||
Seagate Technology plc(a) | 50,267 | 2,428,901 | ||||||
Western Digital Corp. | 2,754 | 140,785 | ||||||
13,847,147 | ||||||||
Textiles, Apparel & Luxury Goods – 0.1% | ||||||||
Hanesbrands, Inc.(a) | 25,718 | 464,724 | ||||||
NIKE, Inc., Class B | 324 | 28,457 | ||||||
Tapestry, Inc. | 2,338 | 75,447 | ||||||
568,628 | ||||||||
Thrifts & Mortgage Finance – 0.1% | ||||||||
New York Community Bancorp, Inc.(a) | 39,746 | 462,246 | ||||||
Tobacco – 3.9% | ||||||||
Altria Group, Inc. | 125,417 | 6,813,906 | ||||||
Philip Morris International, Inc. | 91,683 | 7,936,080 | ||||||
14,749,986 | ||||||||
Trading Companies & Distributors – 1.1% | ||||||||
Fastenal Co.(a) | 648 | 45,716 | ||||||
MSC Industrial Direct Co., Inc., Class A | 20,207 | 1,690,316 | ||||||
WW Grainger, Inc. | 9,185 | 2,590,170 | ||||||
4,326,202 | ||||||||
Transportation Infrastructure – 0.0%(b) | ||||||||
Macquarie Infrastructure Corp. | 4,843 | 196,190 | ||||||
Wireless Telecommunication Services – 0.5% | ||||||||
Telephone & Data Systems, Inc. | 57,949 | 1,847,414 | ||||||
Total Common Stocks (Cost $315,514,859) |
| 374,965,261 |
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(c) – 5.2% | ||||||||
REPURCHASE AGREEMENTS – 5.2% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $13,951,082, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $14,230,143 | $ | 13,950,016 | $ | 13,950,016 | ||||
ML Pierce Fenner & Smith, Inc., 2.97%, dated 4/30/2019, due 7/31/2019, repurchase price $1,007,590, collateralized by various Common Stocks; total market value $1,105,766 | 1,000,000 | 1,000,000 | ||||||
Societe Generale, 2.53%, dated 4/30/2019, due 5/1/2019, repurchase price $5,000,351, collateralized by various U.S. Treasury Securities, ranging from 0.38% – 2.88%, maturing 2/15/2020 – 8/15/2026; Common Stocks; total market value $5,575,293 | 5,000,000 | 5,000,000 | ||||||
19,950,016 | ||||||||
Total Securities Lending Reinvestments (Cost $19,950,016) |
| 19,950,016 | ||||||
Total Investments – 103.6% (Cost $335,464,875) |
| 394,915,277 | ||||||
Liabilities in excess of other assets – (3.6%) |
| (13,613,981 | ) | |||||
NET ASSETS – 100.0% | $ | 381,301,296 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 235 |
FlexShares® Quality Dividend Defensive Index Fund (cont.)
$31,231,725, collateralized in the form of cash with a value of $19,950,016 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $9,555,919 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 9, 2019 – November 15, 2048 and $2,838,790 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from July 15, 2019 – July 22, 2068; a total value of $32,344,725. |
(b) | Represents less than 0.05% of net assets. |
(c) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $19,950,016. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 64,103,005 | ||
Aggregate gross unrealized depreciation | (4,223,687 | ) | ||
Net unrealized appreciation | $ | 59,879,318 | ||
Federal income tax cost | $ | 335,372,632 |
Futures Contracts
FlexShares® Quality Dividend Defensive Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500E-Mini Index | 42 | 06/21/2019 | USD | $ | 6,191,850 | $ | 336,673 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
236 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Quality Dividend Dynamic Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.1% | ||||||||
Aerospace & Defense – 1.6% | ||||||||
Boeing Co. (The) | 2,001 | $ | 755,758 | |||||
Harris Corp. | 391 | 65,883 | ||||||
821,641 | ||||||||
Airlines – 0.5% | ||||||||
Copa Holdings SA, Class A | 3,266 | 271,927 | ||||||
Banks – 8.5% | ||||||||
Bank of America Corp. | 15,272 | 467,018 | ||||||
Bank of NT Butterfield & Son Ltd. (The)(a) | 7,061 | 282,581 | ||||||
Citigroup, Inc. | 3,404 | 240,663 | ||||||
JPMorgan Chase & Co. | 18,630 | 2,162,011 | ||||||
PacWest Bancorp | 3,473 | 137,357 | ||||||
Popular, Inc. | 5,175 | 298,649 | ||||||
Regions Financial Corp. | 6,072 | 94,298 | ||||||
SunTrust Banks, Inc. | 5,290 | 346,389 | ||||||
Wells Fargo & Co. | 5,336 | 258,316 | ||||||
Zions Bancorp NA | 2,047 | 100,979 | ||||||
4,388,261 | ||||||||
Beverages – 0.4% | ||||||||
Coca-Cola Co. (The) | 2,346 | 115,095 | ||||||
PepsiCo, Inc. | 667 | 85,409 | ||||||
200,504 | ||||||||
Biotechnology – 3.9% | ||||||||
AbbVie, Inc. | 12,098 | 960,460 | ||||||
Amgen, Inc. | 5,819 | 1,043,463 | ||||||
2,003,923 | ||||||||
Capital Markets – 4.9% | ||||||||
Ameriprise Financial, Inc. | 2,093 | 307,190 | ||||||
Ares Management Corp.(a) | 2,277 | 55,673 | ||||||
BGC Partners, Inc., Class A(a) | 15,663 | 84,580 | ||||||
BlackRock, Inc. | 667 | 323,655 | ||||||
Eaton Vance Corp. | 8,487 | 352,805 | ||||||
Evercore, Inc., Class A | 3,151 | 307,002 | ||||||
Invesco Ltd. | 7,935 | 174,332 | ||||||
LPL Financial Holdings, Inc.(a) | 3,404 | 252,202 | ||||||
Moelis & Co., Class A | 2,691 | 110,196 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
T. Rowe Price Group, Inc. | 3,128 | $ | 336,260 | |||||
TD Ameritrade Holding Corp. | 4,301 | 226,146 | ||||||
2,530,041 | ||||||||
Chemicals – 1.8% | ||||||||
Chemours Co. (The) | 7,452 | 268,346 | ||||||
Huntsman Corp. | 16,928 | 376,479 | ||||||
LyondellBasell Industries NV, Class A | 2,783 | 245,544 | ||||||
Trinseo SA | 1,265 | 56,862 | ||||||
947,231 | ||||||||
Communications Equipment – 3.8% | ||||||||
Cisco Systems, Inc. | 34,776 | 1,945,717 | ||||||
Consumer Finance – 0.8% | ||||||||
Navient Corp. | 6,877 | 92,908 | ||||||
OneMain Holdings, Inc. | 8,280 | 281,272 | ||||||
Santander Consumer USA Holdings, Inc. | 3,105 | 66,292 | ||||||
440,472 | ||||||||
Containers & Packaging – 0.4% | ||||||||
International Paper Co. | 2,806 | 131,349 | ||||||
Packaging Corp. of America | 1,012 | 100,350 | ||||||
231,699 | ||||||||
Diversified Telecommunication Services – 2.3% | ||||||||
AT&T, Inc. | 15,341 | 474,957 | ||||||
Verizon Communications, Inc. | 12,742 | 728,715 | ||||||
1,203,672 | ||||||||
Electrical Equipment – 1.1% | ||||||||
Eaton Corp. plc | 3,910 | 323,826 | ||||||
Emerson Electric Co. | 3,220 | 228,588 | ||||||
552,414 | ||||||||
Electronic Equipment, Instruments & Components – 0.7% | ||||||||
CDW Corp. | 3,680 | 388,608 | ||||||
Energy Equipment & Services – 0.2% | ||||||||
Helmerich & Payne, Inc. | 1,863 | 109,023 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 237 |
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Entertainment – 1.3% | ||||||||
Cinemark Holdings, Inc. | 2,898 | $ | 121,861 | |||||
Viacom, Inc., Class B | 1,978 | 57,184 | ||||||
Walt Disney Co. (The) | 2,070 | 283,528 | ||||||
World Wrestling Entertainment, Inc., Class A | 2,668 | 223,712 | ||||||
686,285 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 6.4% | ||||||||
Apple Hospitality REIT, Inc. | 1,541 | 25,349 | ||||||
Brixmor Property Group, Inc.(a) | 19,044 | 340,507 | ||||||
EPR Properties | 3,082 | 243,047 | ||||||
Gaming and Leisure Properties, Inc. | 2,438 | 98,446 | ||||||
Host Hotels & Resorts, Inc. | 14,651 | 281,885 | ||||||
Iron Mountain, Inc.(a) | 6,923 | 224,859 | ||||||
Kimco Realty Corp. | 10,028 | 174,387 | ||||||
Lamar Advertising Co., Class A(a) | 3,703 | 306,127 | ||||||
Medical Properties Trust, Inc. | 15,571 | 271,870 | ||||||
Omega Healthcare Investors, Inc.(a) | 2,507 | 88,723 | ||||||
Outfront Media, Inc. | 12,075 | 287,747 | ||||||
Park Hotels & Resorts, Inc. | 7,797 | 250,128 | ||||||
RLJ Lodging Trust(a) | 15,295 | 281,581 | ||||||
Ryman Hospitality Properties, Inc. | 3,910 | 311,236 | ||||||
Senior Housing Properties Trust | 4,048 | 32,505 | ||||||
Spirit Realty Capital, Inc. | 1,472 | 59,557 | ||||||
Weyerhaeuser Co. | 1,104 | 29,587 | ||||||
3,307,541 | ||||||||
Food & Staples Retailing – 0.8% | ||||||||
Walgreens Boots Alliance, Inc. | 5,750 | 308,027 | ||||||
Walmart, Inc. | 828 | 85,152 | ||||||
393,179 | ||||||||
Health Care Equipment & Supplies – 1.0% | ||||||||
Abbott Laboratories | 6,440 | 512,366 | ||||||
Health Care Providers & Services – 0.9% | ||||||||
AmerisourceBergen Corp. | 92 | 6,878 | ||||||
Cardinal Health, Inc. | 5,336 | 259,917 | ||||||
Humana, Inc. | 92 | 23,498 | ||||||
UnitedHealth Group, Inc. | 805 | 187,621 | ||||||
477,914 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – 1.2% | ||||||||
Las Vegas Sands Corp. | 2,461 | $ | 165,010 | |||||
McDonald’s Corp. | 69 | 13,632 | ||||||
Restaurant Brands International, Inc. | 1,564 | 102,036 | ||||||
Six Flags Entertainment Corp. | 1,357 | 72,043 | ||||||
Wyndham Destinations, Inc. | 5,934 | 258,485 | ||||||
611,206 | ||||||||
Household Durables – 0.1% | ||||||||
Whirlpool Corp. | 207 | 28,736 | ||||||
Household Products – 0.6% | ||||||||
Procter & Gamble Co. (The) | 3,036 | 323,273 | ||||||
Independent Power and Renewable Electricity Producers – 0.8% | ||||||||
AES Corp. | 23,092 | 395,335 | ||||||
Industrial Conglomerates – 1.6% | ||||||||
3M Co. | 4,393 | 832,517 | ||||||
Insurance – 1.8% | ||||||||
Lincoln National Corp. | 2,898 | 193,355 | ||||||
MetLife, Inc. | 5,612 | 258,882 | ||||||
Primerica, Inc. | 2,070 | 269,700 | ||||||
Principal Financial Group, Inc. | 2,990 | 170,908 | ||||||
Prudential Financial, Inc. | 414 | 43,764 | ||||||
936,609 | ||||||||
IT Services – 3.5% | ||||||||
Broadridge Financial Solutions, Inc. | 2,093 | 247,246 | ||||||
International Business Machines Corp. | 7,314 | 1,025,935 | ||||||
Mastercard, Inc., Class A | 437 | 111,103 | ||||||
Paychex, Inc. | 2,346 | 197,791 | ||||||
Visa, Inc., Class A(a) | 1,518 | 249,605 | ||||||
1,831,680 | ||||||||
Machinery – 3.8% | ||||||||
Caterpillar, Inc. | 4,094 | 570,785 | ||||||
Cummins, Inc. | 2,737 | 455,136 | ||||||
Dover Corp. | 2,944 | 288,630 | ||||||
Illinois Tool Works, Inc. | 1,472 | 229,087 | ||||||
Kennametal, Inc.(a) | 2,829 | 115,140 | ||||||
Oshkosh Corp. | 3,496 | 288,735 | ||||||
1,947,513 |
See Accompanying Notes to the Financial Statements.
238 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – 1.7% | ||||||||
Comcast Corp., Class A | 414 | $ | 18,021 | |||||
Fox Corp., Class A* | 2,064 | 80,475 | ||||||
Interpublic Group of Cos., Inc. (The) | 12,213 | 280,899 | ||||||
Nexstar Media Group, Inc., Class A | 2,553 | 298,829 | ||||||
Omnicom Group, Inc.(a) | 1,518 | 121,486 | ||||||
Tribune Media Co., Class A | 1,472 | 68,006 | ||||||
867,716 | ||||||||
Metals & Mining – 0.9% | ||||||||
Freeport-McMoRan, Inc. | 8,602 | 105,891 | ||||||
Nucor Corp. | 1,978 | 112,884 | ||||||
United States Steel Corp.(a) | 14,996 | 233,938 | ||||||
452,713 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.2% | ||||||||
Chimera Investment Corp. | 3,703 | 70,987 | ||||||
New Residential Investment Corp. | 1,173 | 19,718 | ||||||
90,705 | ||||||||
Multiline Retail – 0.7% | ||||||||
Kohl’s Corp. | 4,370 | 310,707 | ||||||
Macy’s, Inc. | 1,541 | 36,275 | ||||||
346,982 | ||||||||
Multi-Utilities – 0.5% | ||||||||
CenterPoint Energy, Inc. | 7,682 | 238,142 | ||||||
Oil, Gas & Consumable Fuels – 7.6% | ||||||||
Chevron Corp. | 12,558 | 1,507,714 | ||||||
CVR Energy, Inc. | 6,946 | 316,807 | ||||||
EnLink Midstream LLC | 6,417 | 75,015 | ||||||
Equitrans Midstream Corp.(a) | 3,818 | 79,529 | ||||||
Exxon Mobil Corp. | 6,394 | 513,310 | ||||||
Hess Corp. | 782 | 50,142 | ||||||
Murphy Oil Corp.(a) | 4,025 | 109,641 | ||||||
ONEOK, Inc. | 2,185 | 148,427 | ||||||
PBF Energy, Inc., Class A | 6,831 | 229,385 | ||||||
Plains GP Holdings LP, Class A* | 11,247 | 265,429 | ||||||
SM Energy Co.(a) | 14,996 | 238,886 | ||||||
Valero Energy Corp. | 4,370 | 396,184 | ||||||
3,930,469 |
Investments | Shares | Value | ||||||
Paper & Forest Products – 0.3% | ||||||||
Domtar Corp. | 3,404 | $ | 166,456 | |||||
Pharmaceuticals – 4.3% | ||||||||
Allergan plc | 1,748 | 256,956 | ||||||
Johnson & Johnson | 3,680 | 519,616 | ||||||
Merck & Co., Inc. | 9,223 | 725,942 | ||||||
Pfizer, Inc. | 17,733 | 720,137 | ||||||
2,222,651 | ||||||||
Professional Services – 0.4% | ||||||||
Insperity, Inc. | 1,725 | 206,241 | ||||||
Road & Rail – 0.4% | ||||||||
Norfolk Southern Corp. | 1,081 | 220,546 | ||||||
Semiconductors & Semiconductor Equipment – 6.6% | ||||||||
Applied Materials, Inc. | 5,244 | 231,103 | ||||||
Broadcom, Inc. | 1,794 | 571,210 | ||||||
Cypress Semiconductor Corp.(a) | 9,660 | 165,959 | ||||||
Intel Corp. | 3,381 | 172,566 | ||||||
KLA-Tencor Corp. | 3,703 | 472,058 | ||||||
Lam Research Corp. | 1,702 | 353,046 | ||||||
Maxim Integrated Products, Inc. | 1,610 | 96,600 | ||||||
Texas Instruments, Inc. | 10,074 | 1,187,019 | ||||||
Versum Materials, Inc. | 1,403 | 73,209 | ||||||
Xilinx, Inc. | 828 | 99,476 | ||||||
3,422,246 | ||||||||
Software – 4.6% | ||||||||
Intuit, Inc. | 2,116 | 531,243 | ||||||
Microsoft Corp. | 14,007 | 1,829,314 | ||||||
Oracle Corp. | 759 | 41,996 | ||||||
2,402,553 | ||||||||
Specialty Retail – 5.7% | ||||||||
Best Buy Co., Inc. | 4,669 | 347,420 | ||||||
Home Depot, Inc. (The) | 8,786 | 1,789,708 | ||||||
Lowe’s Cos., Inc. | 7,038 | 796,280 | ||||||
2,933,408 | ||||||||
Technology Hardware, Storage & Peripherals – 5.8% | ||||||||
Apple, Inc. | 11,132 | 2,233,858 | ||||||
Hewlett Packard Enterprise Co. | 8,234 | 130,180 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 239 |
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
HP, Inc. | 17,388 | $ | 346,891 | |||||
Seagate Technology plc | 6,279 | 303,401 | ||||||
3,014,330 | ||||||||
Tobacco – 2.4% | ||||||||
Altria Group, Inc. | 13,570 | 737,258 | ||||||
Philip Morris International, Inc. | 5,612 | 485,775 | ||||||
1,223,033 | ||||||||
Trading Companies & Distributors – 0.8% | ||||||||
Fastenal Co.(a) | 5,612 | 395,927 | ||||||
Transportation Infrastructure – 0.0%(b) | ||||||||
Macquarie Infrastructure Corp. | 322 | 13,044 | ||||||
Wireless Telecommunication Services – 0.5% | ||||||||
Telephone & Data Systems, Inc. | 7,751 | 247,102 | ||||||
Total Common Stocks (Cost $43,634,164) |
| 50,713,551 | ||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(c) – 0.2% | ||||||||
REPURCHASE AGREEMENTS – 0.2% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $89,597, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $91,389 (Cost $89,590) | $ | 89,590 | 89,590 | |||||
Total Investments – 98.3% (Cost $43,723,754) |
| 50,803,141 | ||||||
Other Assets Less Liabilities – 1.7% |
| 875,691 | ||||||
NET ASSETS – 100.0% | $ | 51,678,832 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $3,287,363, collateralized in the form of cash with a value of $89,590 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $2,092,303 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.75%, and maturity dates ranging from May 9, 2019 – November 15, 2048 and $1,367,627 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.50%, and maturity dates ranging from October 7, 2019 – March 22, 2068; a total value of $3,549,520. |
(b) | Represents less than 0.05% of net assets. |
(c) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $89,590. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 7,659,216 | ||
Aggregate gross unrealized depreciation | (521,066 | ) | ||
Net unrealized appreciation | $ | 7,138,150 | ||
Federal income tax cost | $ | 43,713,724 |
See Accompanying Notes to the Financial Statements.
240 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Futures Contracts
FlexShares® Quality Dividend Dynamic Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500E-Mini Index | 6 | 06/21/2019 | USD | $ | 884,550 | $ | 48,733 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 241 |
Schedule of Investments
FlexShares® International Quality Dividend Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 97.9% | ||||||||
Air Freight & Logistics – 0.7% | ||||||||
Royal Mail plc(a) | 1,767,084 | $ | 5,823,650 | |||||
Airlines – 0.7% | ||||||||
Aeroflot PJSC | 4,101,900 | 6,118,153 | ||||||
Auto Components – 1.5% | ||||||||
Bridgestone Corp. | 181,500 | 7,180,148 | ||||||
Xinyi Glass Holdings Ltd.(a) | 5,082,000 | 5,804,003 | ||||||
12,984,151 | ||||||||
Automobiles – 2.1% | ||||||||
Ford Otomotiv Sanayi A/S | 606,936 | 5,358,159 | ||||||
Subaru Corp. | 254,100 | 6,206,770 | ||||||
Tofas Turk Otomobil Fabrikasi A/S | 1,679,238 | 5,043,762 | ||||||
Toyota Motor Corp. | 23,400 | 1,450,747 | ||||||
18,059,438 | ||||||||
Banks – 9.7% | ||||||||
ABN AMRO Group NV, CVA(a) (b) | 256,278 | 6,022,810 | ||||||
Agricultural Bank of China Ltd., Class H | 4,719,000 | 2,177,426 | ||||||
Australia & New Zealand Banking Group Ltd. | 585,882 | 11,216,547 | ||||||
Bank of China Ltd., Class H | 7,623,000 | 3,633,979 | ||||||
Bank Polska Kasa Opieki SA | 222,156 | 6,598,348 | ||||||
Commonwealth Bank of Australia | 29,040 | 1,523,174 | ||||||
Danske Bank A/S | 110,715 | 1,961,962 | ||||||
HSBC Holdings plc | 326,700 | 2,841,195 | ||||||
Intesa Sanpaolo SpA | 1,536,579 | 4,024,417 | ||||||
National Australia Bank Ltd. | 284,955 | 5,084,337 | ||||||
National Bank of Canada | 78,771 | 3,737,114 | ||||||
Nordea Bank Abp | 312,543 | 2,457,461 | ||||||
Royal Bank of Canada(a) | 225,060 | 17,863,259 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 654,852 | 6,242,131 | ||||||
Swedbank AB, Class A | 311,817 | 5,052,742 | ||||||
Toronto-Dominion Bank (The) | 5,445 | 309,327 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
VTB Bank PJSC | 3,934,736,322 | $ | 2,163,031 | |||||
82,909,260 | ||||||||
Capital Markets – 3.4% | ||||||||
China Huarong Asset Management Co. Ltd., Class H* (b) | 29,766,000 | 6,374,038 | ||||||
CI Financial Corp. | 374,979 | 5,371,577 | ||||||
IG Group Holdings plc | 307,098 | 2,040,976 | ||||||
Macquarie Group Ltd. | 83,490 | 7,915,569 | ||||||
Natixis SA | 251,559 | 1,479,527 | ||||||
SBI Holdings, Inc. | 254,100 | 5,413,956 | ||||||
28,595,643 | ||||||||
Chemicals – 1.2% | ||||||||
BASF SE | 2,541 | 206,430 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 72,600 | 1,082,074 | ||||||
Showa Denko KK | 181,500 | 6,135,555 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H | 6,534,000 | 2,956,599 | ||||||
10,380,658 | ||||||||
Commercial Services & Supplies – 0.6% | ||||||||
Edenred | 113,256 | 5,332,161 | ||||||
Diversified Financial Services – 0.8% | ||||||||
AMP Ltd.(a) | 3,384,612 | 5,407,728 | �� | |||||
Banca Mediolanum SpA(a) | 169,158 | 1,240,771 | ||||||
6,648,499 | ||||||||
Diversified Telecommunication Services – 3.0% | ||||||||
O2 Czech Republic A/S | 566,643 | 6,153,027 | ||||||
Proximus SADP | 160,446 | 4,486,305 | ||||||
Spark New Zealand Ltd. | 2,308,680 | 5,650,547 | ||||||
Telenor ASA(a) | 359,733 | 7,205,060 | ||||||
Telia Co. AB | 496,584 | 2,112,368 | ||||||
25,607,307 | ||||||||
Electric Utilities – 1.7% | ||||||||
Endesa SA | 262,086 | 6,523,517 |
See Accompanying Notes to the Financial Statements.
242 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® International Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
Federal Grid Co. Unified Energy System PJSC | 2,456,251,116 | $ | 6,313,928 | |||||
Red Electrica Corp. SA | 76,956 | 1,594,231 | ||||||
14,431,676 | ||||||||
Electrical Equipment – 0.7% | ||||||||
Mitsubishi Electric Corp. | 145,200 | 2,062,459 | ||||||
Signify NV(b) | 136,851 | 4,099,551 | ||||||
6,162,010 | ||||||||
Electronic Equipment, Instruments & Components – 0.4% | ||||||||
AU Optronics Corp. | 5,082,000 | 1,817,291 | ||||||
Innolux Corp. | 4,719,000 | 1,511,863 | ||||||
3,329,154 | ||||||||
Entertainment – 0.8% | ||||||||
Nintendo Co. Ltd. | 20,300 | 6,926,150 | ||||||
Equity Real Estate Investment Trusts (REITs) – 0.9% | ||||||||
Covivio | 15,609 | 1,688,075 | ||||||
Hui Xian REIT | 12,705,000 | 6,298,940 | ||||||
7,987,015 | ||||||||
Food & Staples Retailing – 0.9% | ||||||||
InRetail Peru Corp.* (b) | 50,043 | 1,951,677 | ||||||
President Chain Store Corp. | 604,000 | 5,629,332 | ||||||
7,581,009 | ||||||||
Food Products – 2.3% | ||||||||
Mowi ASA | 280,962 | 6,072,483 | ||||||
Nestle SA (Registered) | 80,586 | 7,754,129 | ||||||
Salmar ASA | 4,719 | 213,917 | ||||||
Uni-President Enterprises Corp. | 2,370,000 | 5,629,527 | ||||||
19,670,056 | ||||||||
Gas Utilities – 0.2% | ||||||||
Naturgy Energy Group SA | 63,888 | 1,812,894 | ||||||
Health Care Equipment & Supplies – 0.1% | ||||||||
Alcon, Inc.* | 8,846 | 509,405 | ||||||
Hotels, Restaurants & Leisure – 0.9% | ||||||||
Sands China Ltd. | 1,452,000 | 7,976,802 |
Investments | Shares | Value | ||||||
Household Durables – 1.6% | ||||||||
Persimmon plc | 208,362 | $ | 6,073,671 | |||||
Taylor Wimpey plc | 3,052,104 | 7,217,680 | ||||||
13,291,351 | ||||||||
Insurance – 8.6% | ||||||||
Admiral Group plc | 82,401 | 2,367,582 | ||||||
Aegon NV | 1,089,363 | 5,684,273 | ||||||
AIA Group Ltd. | 72,600 | 739,844 | ||||||
Allianz SE (Registered) | 52,998 | 12,758,016 | ||||||
BB Seguridade Participacoes SA | 726,000 | 5,193,722 | ||||||
Legal & General Group plc | 2,037,519 | 7,389,580 | ||||||
MS&AD Insurance Group Holdings, Inc. | 181,500 | 5,602,667 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)* | 33,396 | 8,346,198 | ||||||
Poste Italiane SpA(b) | 735,075 | 7,834,324 | ||||||
Powszechny Zaklad Ubezpieczen SA | 373,890 | 4,102,134 | ||||||
Sampo OYJ, Class A | 45,012 | 2,056,136 | ||||||
Tokio Marine Holdings, Inc. | 122,900 | 6,181,691 | ||||||
Zurich Insurance Group AG | 15,609 | 4,976,805 | ||||||
73,232,972 | ||||||||
Interactive Media & Services – 0.8% | ||||||||
Tencent Holdings Ltd. | 134,700 | 6,661,687 | ||||||
IT Services – 0.2% | ||||||||
Nomura Research Institute Ltd. | 36,300 | 1,769,778 | ||||||
Machinery – 2.2% | ||||||||
Atlas Copco AB, Class A(a) | 19,965 | 619,942 | ||||||
Atlas Copco AB, Class B | 22,506 | 639,897 | ||||||
FANUC Corp.(a) | 42,700 | 7,964,916 | ||||||
Kone OYJ, Class B | 50,457 | 2,762,894 | ||||||
Sinotruk Hong Kong Ltd.(a) | 3,267,000 | 7,070,852 | ||||||
19,058,501 | ||||||||
Marine – 0.7% | ||||||||
Kuehne + Nagel International AG (Registered) | 39,567 | 5,748,670 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 243 |
FlexShares® International Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – 2.3% | ||||||||
Eutelsat Communications SA(a) | 310,002 | $ | 5,589,975 | |||||
ITV plc | 1,218,591 | 2,170,844 | ||||||
ProSiebenSat.1 Media SE | 355,014 | 5,584,024 | ||||||
Smiles Fidelidade SA | 471,900 | 5,853,505 | ||||||
19,198,348 | ||||||||
Metals & Mining – 6.6% | ||||||||
BHP Group Ltd. | 48,642 | 1,280,451 | ||||||
BHP Group plc | 151,371 | 3,570,576 | ||||||
Eregli Demir ve Celik Fabrikalari TAS | 3,726,558 | 5,718,280 | ||||||
Evraz plc | 909,678 | 7,442,719 | ||||||
Kumba Iron Ore Ltd.(a) | 86,757 | 2,594,011 | ||||||
Magnitogorsk Iron & Steel Works PJSC | 9,661,608 | 6,612,877 | ||||||
Novolipetsk Steel PJSC | 2,528,295 | 6,698,793 | ||||||
Rio Tinto plc | 135,762 | 7,902,430 | ||||||
Severstal PJSC | 413,457 | 6,691,886 | ||||||
Vedanta Ltd. | 3,043,392 | 7,300,684 | ||||||
55,812,707 | ||||||||
Multiline Retail – 0.9% | ||||||||
Wesfarmers Ltd. | 294,393 | 7,461,578 | ||||||
Multi-Utilities – 1.8% | ||||||||
AGL Energy Ltd. | 425,799 | 6,662,300 | ||||||
Centrica plc | 3,727,647 | 5,163,269 | ||||||
Engie SA | 211,992 | 3,137,236 | ||||||
14,962,805 | ||||||||
Oil, Gas & Consumable Fuels – 9.0% | ||||||||
BP plc | 2,243,889 | 16,352,124 | ||||||
Bukit Asam Tbk. PT* | 12,922,800 | 3,591,178 | ||||||
China Petroleum & Chemical Corp., Class H | 2,904,000 | 2,232,024 | ||||||
Eni SpA | 520,905 | 8,883,937 | ||||||
Equinor ASA | 233,409 | 5,194,514 | ||||||
Formosa Petrochemical Corp. | 945,000 | 3,501,586 | ||||||
Inter Pipeline Ltd.(a) | 359,733 | 5,835,098 | ||||||
Pilipinas Shell Petroleum Corp. | 6,933,300 | 6,013,627 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Royal Dutch Shell plc, Class A | 67,155 | $ | 2,144,892 | |||||
Royal Dutch Shell plc, Class B | 37,752 | 1,212,913 | ||||||
TOTAL SA(a) | 134,553 | 7,471,066 | ||||||
TransCanada Corp. | 178,597 | 8,489,067 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 236,676 | 4,888,542 | ||||||
Woodside Petroleum Ltd. | 22,869 | 569,650 | ||||||
76,380,218 | ||||||||
Paper & Forest Products – 0.3% | ||||||||
UPM-Kymmene OYJ | 99,825 | 2,809,153 | ||||||
Personal Products – 2.9% | ||||||||
L’Oreal SA(a) | 2,178 | 598,261 | ||||||
Pola Orbis Holdings, Inc. | 202,000 | 6,347,923 | ||||||
Unilever NV, CVA(a) | 299,838 | 18,132,095 | ||||||
25,078,279 | ||||||||
Pharmaceuticals – 6.3% | ||||||||
AstraZeneca plc | 3,267 | 243,872 | ||||||
GlaxoSmithKline plc | 1,013,496 | 20,788,454 | ||||||
Livzon Pharmaceutical Group, Inc., Class H | 1,778,700 | 6,461,487 | ||||||
Novartis AG (Registered) | 44,286 | 3,616,328 | ||||||
Orion OYJ, Class B | 190,212 | 6,316,245 | ||||||
Roche Holding AG | 40,656 | 10,716,586 | ||||||
Sanofi(a) | 61,710 | 5,359,084 | ||||||
53,502,056 | ||||||||
Professional Services – 0.8% | ||||||||
Adecco Group AG (Registered)(a) | 116,160 | 6,670,936 | ||||||
Real Estate Management & Development – 3.8% | ||||||||
Agile Group Holdings Ltd. | 4,698,000 | 7,102,032 | ||||||
China Evergrande Group(a) | 1,629,000 | 5,222,085 | ||||||
Daito Trust Construction Co. Ltd. | 5,500 | 734,074 | ||||||
Land & Houses PCL, NVDR | 18,767,100 | 6,583,916 | ||||||
SOHO China Ltd.* | 14,701,500 | 5,321,878 | ||||||
Wharf Holdings Ltd. (The) | 1,966,000 | 5,650,865 | ||||||
Yuzhou Properties Co. Ltd. | 3,267,000 | 1,723,989 | ||||||
32,338,839 |
See Accompanying Notes to the Financial Statements.
244 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® International Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Road & Rail – 0.8% | ||||||||
Aurizon Holdings Ltd. | 1,980,528 | $ | 6,635,414 | |||||
Semiconductors & Semiconductor Equipment – 2.7% | ||||||||
Disco Corp.(a) | 36,300 | 6,218,667 | ||||||
Novatek Microelectronics Corp. | 1,089,000 | 7,101,178 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 500,222 | 4,192,663 | ||||||
Tokyo Electron Ltd. | 16,600 | 2,629,917 | ||||||
Vanguard International Semiconductor Corp. | 1,452,000 | 3,218,731 | ||||||
23,361,156 | ||||||||
Software – 0.7% | ||||||||
Oracle Corp. Japan | 9,400 | 642,281 | ||||||
SAP SE | 1,089 | 139,838 | ||||||
Trend Micro, Inc. | 108,900 | 5,436,444 | ||||||
6,218,563 | ||||||||
Specialty Retail – 0.9% | ||||||||
Hennes & Mauritz AB, Class B | 454,476 | 7,915,612 | ||||||
Technology Hardware, Storage & Peripherals – 2.6% | ||||||||
Brother Industries Ltd. | 145,200 | 2,845,985 | ||||||
Canon, Inc. | 254,100 | 7,047,497 | ||||||
Chicony Electronics Co. Ltd. | 726,000 | 1,787,923 | ||||||
Compal Electronics, Inc. | 2,904,000 | 1,874,852 | ||||||
Inventec Corp. | 2,178,000 | 1,747,982 | ||||||
Lite-On Technology Corp. | 1,452,000 | 2,046,361 | ||||||
Pegatron Corp. | 891,000 | 1,681,023 | ||||||
Samsung Electronics Co. Ltd. | 84,216 | 3,305,486 | ||||||
22,337,109 | ||||||||
Textiles, Apparel & Luxury Goods – 1.9% | ||||||||
HUGO BOSS AG | 81,312 | 5,664,414 | ||||||
Kering SA | 9,438 | 5,574,167 | ||||||
Ruentex Industries Ltd. | 2,178,000 | 5,201,657 | ||||||
16,440,238 | ||||||||
Tobacco – 1.6% | ||||||||
Imperial Brands plc | 218,163 | 6,928,183 |
Investments | Shares | Value | ||||||
Tobacco – (continued) | ||||||||
Japan Tobacco, Inc. | 290,400 | $ | 6,716,682 | |||||
KT&G Corp. | 1,089 | 95,089 | ||||||
13,739,954 | ||||||||
Trading Companies & Distributors – 1.3% | ||||||||
ITOCHU Corp. | 145,200 | 2,607,407 | ||||||
Marubeni Corp. | 871,200 | 6,219,449 | ||||||
Sumitomo Corp. | 145,200 | 2,072,237 | ||||||
10,899,093 | ||||||||
Transportation Infrastructure – 1.7% | ||||||||
Aena SME SA(b) | 37,752 | 6,995,738 | ||||||
Atlantia SpA | 78,771 | 2,146,937 | ||||||
Sydney Airport | 754,677 | 4,047,587 | ||||||
TAV Havalimanlari Holding A/S | 238,491 | 1,010,775 | ||||||
14,201,037 | ||||||||
Wireless Telecommunication Services – 2.3% | ||||||||
Intouch Holdings PCL, NVDR | 1,415,700 | 2,638,501 | ||||||
NTT DOCOMO, Inc. | 326,700 | 7,070,800 | ||||||
Vodafone Group plc | 5,467,869 | 10,122,026 | ||||||
19,831,327 | ||||||||
Total Common Stocks (Cost $833,217,656) |
| 834,402,472 | ||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(c) – 4.1% | ||||||||
REPURCHASE AGREEMENTS – 4.1% | ||||||||
Citigroup Global Markets Ltd., 2.43%, dated 4/30/2019, due 5/1/2019, repurchase price $25,001,688, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 2.13%, maturing 9/5/2019 – 3/31/2024; total market value $25,497,628 | $ | 25,000,000 | 25,000,000 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 245 |
FlexShares® International Quality Dividend Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(c) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $10,072,321, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $10,273,797 | $ | 10,071,552 | $ | 10,071,552 | ||||
35,071,552 | ||||||||
Total Securities Lending Reinvestments (Cost $35,071,552) |
| 35,071,552 | ||||||
Total Investments – 102.0% (Cost $868,289,208) |
| 869,474,024 | ||||||
Liabilities in excess of other assets – (2.0%) |
| (17,222,961 | ) | |||||
NET ASSETS – 100.0% |
| $ | 852,251,063 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $69,344,177, collateralized in the form of cash with a value of $35,071,552 that was reinvested in the securities shown in the |
Securities Lending Reinvestment section of the Schedule of Investments; $6,252,452 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.00%, and maturity dates ranging from May 15, 2019 – August 15, 2047 and $32,193,826 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from July 15, 2019 – September 20, 2117; a total value of $73,517,830. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $35,071,552. |
Percentages shown are based on Net Assets.
Abbreviations
CVA – Dutch Certification
NVDR –Non-Voting Depositary Receipt
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 50,218,416 | ||
Aggregate gross unrealized depreciation | (53,271,527 | ) | ||
Net unrealized depreciation | $ | (3,053,111 | ) | |
Federal income tax cost | $ | 873,023,564 |
Futures Contracts
FlexShares® International Quality Dividend Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index | 120 | 06/21/2019 | EUR | $ | 4,642,388 | $ | 230,145 | |||||||||||||
FTSE 100 Index | 36 | 06/21/2019 | GBP | 3,459,548 | 85,352 | |||||||||||||||
Hang Seng Index | 2 | 05/30/2019 | HKD | 375,609 | (3,296 | ) | ||||||||||||||
MSCI Emerging MarketsE-Mini Index | 71 | 06/21/2019 | USD | 3,834,710 | 81,227 | |||||||||||||||
S&P/TSX 60 Index | 7 | 06/20/2019 | CAD | 1,033,868 | 32,265 | |||||||||||||||
SPI 200 Index | 13 | 06/20/2019 | AUD | 1,442,048 | 23,725 | |||||||||||||||
TOPIX Index | 19 | 06/13/2019 | JPY | 2,755,106 | 8,060 | |||||||||||||||
$ | 457,478 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
See Accompanying Notes to the Financial Statements.
246 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® International Quality Dividend Index Fund (cont.)
Forward Foreign Currency Contracts | ||||||||||||||||||||||
FlexShares® International Quality Dividend Index Fund had the following outstanding contracts as of April 30, 2019: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
TWD* | 17,722,250 | Goldman Sachs & Co. | USD | 574,000 | 06/19/2019 | $ | 1,359 | |||||||||||||||
USD | 329,091 | JPMorgan Chase Bank | AUD | 464,658 | 06/19/2019 | 1,650 | ||||||||||||||||
USD | 723,384 | BNP Paribas SA | BRL* | 2,783,346 | 06/19/2019 | 21,487 | ||||||||||||||||
USD | 102,227 | Morgan Stanley | CHF | 101,919 | 06/19/2019 | 1,731 | ||||||||||||||||
USD | 500,000 | Toronto-Dominion Bank (The) | EUR | 438,101 | 06/19/2019 | 6,932 | ||||||||||||||||
USD | 956,000 | Morgan Stanley | GBP | 716,890 | 06/19/2019 | 18,970 | ||||||||||||||||
USD | 330,000 | JPMorgan Chase Bank | JPY | 36,348,074 | 06/19/2019 | 2,322 | ||||||||||||||||
USD | 437,000 | Morgan Stanley | JPY | 48,405,177 | 06/19/2019 | 627 | ||||||||||||||||
USD | 264,595 | Morgan Stanley | KRW* | 298,079,395 | 06/19/2019 | 8,965 | ||||||||||||||||
USD | 221,000 | Toronto-Dominion Bank (The) | SEK | 2,037,857 | 06/19/2019 | 5,791 | ||||||||||||||||
Total unrealized appreciation | $ | 69,834 | ||||||||||||||||||||
CAD | 274,850 | Citibank NA | USD | 206,687 | 06/19/2019 | $ | (2,109 | ) | ||||||||||||||
CZK | 1,820,806 | Goldman Sachs & Co. | USD | 80,218 | 06/19/2019 | (543 | ) | |||||||||||||||
EUR | 846,544 | JPMorgan Chase Bank | USD | 964,767 | 06/19/2019 | (12,010 | ) | |||||||||||||||
EUR | 234,761 | Toronto-Dominion Bank (The) | USD | 266,000 | 06/19/2019 | (1,784 | ) | |||||||||||||||
GBP | 18,882 | Morgan Stanley | USD | 25,060 | 06/19/2019 | (380 | ) | |||||||||||||||
GBP | 176,669 | Toronto-Dominion Bank (The) | USD | 234,000 | 06/19/2019 | (3,080 | ) | |||||||||||||||
HKD | 3,616,494 | Citibank NA | USD | 462,000 | 06/19/2019 | (695 | ) | |||||||||||||||
HKD | 2,263,627 | Goldman Sachs & Co. | USD | 289,044 | 06/19/2019 | (305 | ) | |||||||||||||||
JPY | 54,169,328 | JPMorgan Chase Bank | USD | 489,975 | 06/19/2019 | (1,639 | ) | |||||||||||||||
NOK | 902,040 | Citibank NA | USD | 105,326 | 06/19/2019 | (809 | ) | |||||||||||||||
RUB* | 31,056,204 | BNP Paribas SA | USD | 479,000 | 06/19/2019 | (1,507 | ) | |||||||||||||||
SEK | 2,070,607 | Citibank NA | USD | 223,785 | 06/19/2019 | (5,117 | ) | |||||||||||||||
SGD | 17,194 | Societe Generale | USD | 12,702 | 06/19/2019 | (60 | ) | |||||||||||||||
TWD* | 3,873,072 | Goldman Sachs & Co. | USD | 125,753 | 06/19/2019 | (12 | ) | |||||||||||||||
USD | 104,055 | Goldman Sachs & Co. | INR* | 7,340,681 | 06/19/2019 | (833 | ) | |||||||||||||||
Total unrealized depreciation | $ | (30,883 | ) | |||||||||||||||||||
Net unrealized appreciation | $ | 38,951 |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
AUD – Australian Dollar
BRL – Brazilian Real
CAD – Canadian Dollar
CHF – Swiss Franc
CZK – Czech Koruna
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
INR – Indian Rupee
JPY – Japanese Yen
KRW – Korean Won
NOK – Norwegian Krone
RUB – Russian Ruble
SEK – Swedish Krona
SGD – Singapore Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 247 |
FlexShares® International Quality Dividend Index Fund (cont.)
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, 2019:
Australia | 6.8 | % | ||
Belgium | 0.5 | |||
Brazil | 1.3 | |||
Canada | 4.9 | |||
China | 7.4 | |||
Czech Republic | 0.7 | |||
Denmark | 0.2 | |||
Finland | 1.6 | |||
France | 4.3 | |||
Germany | 3.8 | |||
Hong Kong | 2.4 | |||
India | 0.9 | |||
Indonesia | 0.4 | |||
Italy | 2.8 | |||
Japan | 13.4 | |||
Netherlands | 4.0 | |||
New Zealand | 0.7 | |||
Norway | 2.2 | |||
Peru | 0.2 | |||
Philippines | 0.7 | |||
Poland | 1.3 | |||
Russia | 4.1 | |||
South Africa | 0.3 | |||
South Korea | 0.4 | |||
Spain | 2.0 | |||
Sweden | 2.9 | |||
Switzerland | 4.7 | |||
Taiwan | 5.5 | |||
Thailand | 1.1 | |||
Turkey | 2.6 | |||
United Kingdom | 13.8 | |||
Other1 | 2.1 | |||
100.0 | % |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
248 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® International Quality Dividend Defensive Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 97.7% | ||||||||
Air Freight & Logistics – 0.7% | ||||||||
Royal Mail plc | 198,832 | $ | 655,276 | |||||
Airlines – 1.4% | ||||||||
Aeroflot PJSC | 457,778 | 682,795 | ||||||
Japan Airlines Co. Ltd. | 18,700 | 626,103 | ||||||
1,308,898 | ||||||||
Auto Components – 0.9% | ||||||||
Bridgestone Corp. | 19,700 | 779,333 | ||||||
Nokian Renkaat OYJ | 3,612 | 120,710 | ||||||
900,043 | ||||||||
Automobiles – 1.7% | ||||||||
Ford Otomotiv Sanayi A/S | 15,523 | 137,040 | ||||||
Subaru Corp. | 30,600 | 747,450 | ||||||
Tofas Turk Otomobil Fabrikasi A/S | 191,737 | 575,902 | ||||||
Toyota Motor Corp. | 3,200 | 198,393 | ||||||
1,658,785 | ||||||||
Banks – 10.4% | ||||||||
ABN AMRO Group NV, CVA(a) (b) | 28,552 | 671,003 | ||||||
Aozora Bank Ltd. | 5,600 | 136,210 | ||||||
Australia & New Zealand Banking Group Ltd. | 66,693 | 1,276,819 | ||||||
Bank Polska Kasa Opieki SA | 6,536 | 194,128 | ||||||
Commonwealth Bank of Australia | 20,081 | 1,053,266 | ||||||
Danske Bank A/S | 14,018 | 248,411 | ||||||
DNB ASA* (a) | 14,405 | 275,940 | ||||||
Grupo Financiero Banorte SAB de CV, Class O(a) | 141,900 | 893,864 | ||||||
HSBC Holdings plc | 40,248 | 350,023 | ||||||
Intesa Sanpaolo SpA | 164,518 | 430,885 | ||||||
National Australia Bank Ltd. | 31,003 | 553,174 | ||||||
National Bank of Canada | 10,836 | 514,090 | ||||||
Royal Bank of Canada | 22,317 | 1,771,325 | ||||||
Sberbank of Russia PJSC | 45,279 | 157,880 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 74,003 | 705,406 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Societe Generale SA | 3,784 | $ | 119,673 | |||||
Swedbank AB, Class A | 34,357 | 556,727 | ||||||
Toronto-Dominion Bank (The) | 774 | 43,970 | ||||||
9,952,794 | ||||||||
Beverages – 0.6% | ||||||||
Coca-Cola Amatil Ltd. | 95,116 | 589,137 | ||||||
Capital Markets – 2.0% | ||||||||
China Huarong Asset Management Co. Ltd., Class H* (b) | 3,311,000 | 709,012 | ||||||
CI Financial Corp. | 13,287 | 190,336 | ||||||
IG Group Holdings plc | 86,430 | 574,414 | ||||||
Natixis SA | 30,315 | 178,296 | ||||||
Singapore Exchange Ltd. | 43,000 | 233,133 | ||||||
1,885,191 | ||||||||
Chemicals – 0.1% | ||||||||
BASF SE | 473 | 38,426 | ||||||
Formosa Chemicals & Fibre Corp. | 15,000 | 53,882 | ||||||
Israel Chemicals Ltd. | 5,203 | 27,525 | ||||||
119,833 | ||||||||
Commercial Services & Supplies – 0.1% | ||||||||
Edenred | 817 | 38,465 | ||||||
Societe BIC SA | 731 | 62,958 | ||||||
101,423 | ||||||||
Construction & Engineering – 0.0%(c) | ||||||||
Kajima Corp. | 1,500 | 22,155 | ||||||
Diversified Financial Services – 0.8% | ||||||||
AMP Ltd.(a) | 369,155 | 589,813 | ||||||
Banca Mediolanum SpA | 22,188 | 162,749 | ||||||
752,562 | ||||||||
Diversified Telecommunication Services – 3.7% | ||||||||
BCE, Inc. | 5,246 | 233,753 | ||||||
Nippon Telegraph & Telephone Corp. | 19,700 | 816,478 | ||||||
O2 Czech Republic A/S | 67,768 | 735,875 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 249 |
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
Proximus SADP | 6,708 | $ | 187,565 | |||||
Spark New Zealand Ltd. | 253,270 | 619,884 | ||||||
Telenor ASA | 38,012 | 761,339 | ||||||
Telia Co. AB | 54,137 | 230,288 | ||||||
3,585,182 | ||||||||
Electric Utilities – 3.9% | ||||||||
EDP – Energias de Portugal SA* | 62,909 | 238,227 | ||||||
Emera, Inc.(a) | 5,762 | 215,497 | ||||||
Endesa SA | 30,659 | 763,125 | ||||||
Enel SpA | 187,523 | 1,185,075 | ||||||
Federal Grid Co. Unified Energy System PJSC | 275,942,309 | 709,325 | ||||||
Fortis, Inc. | 5,948 | 218,960 | ||||||
Fortum OYJ | 7,396 | 156,159 | ||||||
SSE plc | 16,471 | 245,752 | ||||||
3,732,120 | ||||||||
Electrical Equipment – 1.0% | ||||||||
Signify NV(b) | 2,193 | 65,694 | ||||||
Vestas Wind Systems A/S | 9,460 | 854,882 | ||||||
920,576 | ||||||||
Electronic Equipment, Instruments & Components – 0.9% | ||||||||
AU Optronics Corp. | 516,000 | 184,518 | ||||||
Innolux Corp. | 2,193,000 | 702,589 | ||||||
887,107 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.0% | ||||||||
Growthpoint Properties Ltd. | 126,248 | 219,098 | ||||||
H&R REIT(a) | 12,771 | 217,312 | ||||||
Hui Xian REIT | 1,462,000 | 724,837 | ||||||
Link REIT | 43,000 | 501,504 | ||||||
RioCan REIT | 11,481 | 219,856 | ||||||
Scentre Group | 6,493 | 17,458 | ||||||
1,900,065 | ||||||||
Food & Staples Retailing – 1.1% | ||||||||
InRetail Peru Corp.* (b) | 5,203 | 202,917 | ||||||
METRO AG | 13,072 | 221,212 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
President Chain Store Corp. | 70,000 | $ | 652,406 | |||||
1,076,535 | ||||||||
Food Products – 4.5% | ||||||||
Mowi ASA | 31,562 | 682,155 | ||||||
Nestle SA (Registered) | 20,253 | 1,948,780 | ||||||
Orkla ASA | 35,819 | 280,173 | ||||||
Salmar ASA | 13,803 | 625,704 | ||||||
Uni-President Enterprises Corp. | 311,000 | 738,727 | ||||||
4,275,539 | ||||||||
Health Care Equipment & Supplies – 0.1% | ||||||||
Alcon, Inc.* | 1,797 | 103,482 | ||||||
Hotels, Restaurants & Leisure – 1.2% | ||||||||
Crown Resorts Ltd. | 24,080 | 225,249 | ||||||
Sands China Ltd. | 165,600 | 909,751 | ||||||
Tsogo Sun Holdings Ltd. | 11,653 | 17,492 | ||||||
1,152,492 | ||||||||
Household Durables – 1.9% | ||||||||
Persimmon plc | 24,338 | 709,443 | ||||||
Taylor Wimpey plc | 338,797 | 801,194 | ||||||
Woongjin Coway Co. Ltd. | 4,257 | 319,963 | ||||||
1,830,600 | ||||||||
Insurance – 8.5% | ||||||||
Admiral Group plc | 9,288 | 266,867 | ||||||
Aegon NV | 58,050 | 302,904 | ||||||
Ageas | 9,116 | 480,166 | ||||||
AIA Group Ltd. | 5,000 | 50,953 | ||||||
Allianz SE (Registered) | 516 | 124,215 | ||||||
Assicurazioni Generali SpA | 16,469 | 319,303 | ||||||
AXA SA(a) | 23,220 | 617,908 | ||||||
BB Seguridade Participacoes SA | 17,200 | 123,047 | ||||||
Direct Line Insurance Group plc | 48,719 | 209,210 | ||||||
Legal & General Group plc | 234,780 | 851,489 | ||||||
MS&AD Insurance Group Holdings, Inc. | 25,800 | 796,412 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)* | 3,612 | 902,697 |
See Accompanying Notes to the Financial Statements.
250 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
NN Group NV | 2,881 | $ | 125,340 | |||||
Orange Life Insurance Ltd.(b) | 1,978 | 60,281 | ||||||
Poste Italiane SpA(b) | 83,893 | 894,120 | ||||||
Powszechny Zaklad Ubezpieczen SA | 66,994 | 735,025 | ||||||
Sampo OYJ, Class A | 6,235 | 284,813 | ||||||
Tokio Marine Holdings, Inc. | 8,600 | 432,567 | ||||||
Zurich Insurance Group AG | 1,763 | 562,118 | ||||||
8,139,435 | ||||||||
Interactive Media & Services – 0.8% | ||||||||
Tencent Holdings Ltd. | 15,200 | 751,727 | ||||||
IT Services – 0.9% | ||||||||
Larsen & Toubro Infotech Ltd.(b) | 4,730 | 116,754 | ||||||
Otsuka Corp. | 19,600 | 769,042 | ||||||
885,796 | ||||||||
Machinery – 2.2% | ||||||||
FANUC Corp. | 4,500 | 839,394 | ||||||
Kone OYJ, Class B | 14,878 | 814,681 | ||||||
Sinotruk Hong Kong Ltd.(a) | 193,500 | 418,797 | ||||||
2,072,872 | ||||||||
Media – 2.1% | ||||||||
Eutelsat Communications SA | 34,572 | 623,405 | ||||||
Lagardere SCA(a) | 3,182 | 86,513 | ||||||
ProSiebenSat.1 Media SE | 39,689 | 624,269 | ||||||
Smiles Fidelidade SA | 53,700 | 666,101 | ||||||
2,000,288 | ||||||||
Metals & Mining – 6.2% | ||||||||
Alrosa PJSC | 109,908 | 160,375 | ||||||
Alumina Ltd. | 98,900 | 155,928 | ||||||
Eregli Demir ve Celik Fabrikalari TAS | 413,101 | 633,890 | ||||||
Evraz plc | 99,846 | 816,911 | ||||||
Kumba Iron Ore Ltd.(a) | 26,531 | 793,270 | ||||||
Magnitogorsk Iron & Steel Works PJSC | 1,058,359 | 724,393 | ||||||
Novolipetsk Steel PJSC | 283,972 | 752,392 | ||||||
Rio Tinto plc | 11,352 | 660,777 | ||||||
Severstal PJSC | 15,422 | 249,608 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Severstal PJSC, GDR(b) | 30,760 | $ | 498,004 | |||||
Vedanta Ltd. | 227,556 | 545,876 | ||||||
5,991,424 | ||||||||
Multiline Retail – 0.9% | ||||||||
Wesfarmers Ltd. | 34,142 | 865,351 | ||||||
Multi-Utilities – 1.4% | ||||||||
AGL Energy Ltd. | 24,467 | 382,825 | ||||||
Centrica plc | 413,015 | 572,079 | ||||||
Engie SA | 23,306 | 344,902 | ||||||
1,299,806 | ||||||||
Oil, Gas & Consumable Fuels – 9.0% | ||||||||
BP plc | 247,766 | 1,805,571 | ||||||
Bukit Asam Tbk. PT* | 559,000 | 155,343 | ||||||
China Petroleum & Chemical Corp., Class H | 344,000 | 264,399 | ||||||
China Shenhua Energy Co. Ltd., Class H | 200,500 | 443,148 | ||||||
Coal India Ltd. | 184,857 | 670,154 | ||||||
Eni SpA | 29,584 | 504,550 | ||||||
Equinor ASA | 15,781 | 351,206 | ||||||
Hindustan Petroleum Corp. Ltd. | 38,958 | 163,133 | ||||||
Inter Pipeline Ltd.(a) | 39,474 | 640,293 | ||||||
Neste OYJ | 21,156 | 698,009 | ||||||
Pilipinas Shell Petroleum Corp. | 774,090 | 671,410 | ||||||
Royal Dutch Shell plc, Class A | 8,299 | 265,065 | ||||||
Royal Dutch Shell plc, Class B | 2,881 | 92,562 | ||||||
TOTAL SA | 23,826 | 1,322,941 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 27,004 | 557,767 | ||||||
Vermilion Energy, Inc.(a) | 1,849 | 47,022 | ||||||
8,652,573 | ||||||||
Personal Products – 0.6% | ||||||||
L’Oreal SA(a) | 1,806 | 496,079 | ||||||
Unilever NV, CVA(a) | 1,032 | 62,408 | ||||||
558,487 | ||||||||
Pharmaceuticals – 6.0% | ||||||||
Astellas Pharma, Inc. | 54,300 | 735,701 | ||||||
GlaxoSmithKline plc | 113,434 | 2,326,716 | ||||||
H Lundbeck A/S | 5,633 | 236,764 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 251 |
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Novartis AG (Registered) | 8,987 | $ | 733,865 | |||||
Orion OYJ, Class B | 13,287 | 441,213 | ||||||
Roche Holding AG | 4,300 | 1,133,444 | ||||||
Sanofi(a) | 1,892 | 164,307 | ||||||
5,772,010 | ||||||||
Professional Services – 0.9% | ||||||||
Recruit Holdings Co. Ltd. | 30,100 | 899,689 | ||||||
Real Estate Management & Development – 3.2% | ||||||||
Agile Group Holdings Ltd. | 536,000 | 810,279 | ||||||
Daito Trust Construction Co. Ltd. | 5,300 | 707,381 | ||||||
Land & Houses PCL, NVDR | 2,064,000 | 724,097 | ||||||
SOHO China Ltd.* | 1,763,000 | 638,198 | ||||||
Wharf Holdings Ltd. (The) | 62,000 | 178,206 | ||||||
3,058,161 | ||||||||
Road & Rail – 0.8% | ||||||||
Aurizon Holdings Ltd. | 225,922 | 756,912 | ||||||
Semiconductors & Semiconductor Equipment – 1.3% | ||||||||
Novatek Microelectronics Corp. | 129,000 | 841,186 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 51,000 | 427,462 | ||||||
1,268,648 | ||||||||
Software – 0.5% | ||||||||
SAP SE | 258 | 33,130 | ||||||
Trend Micro, Inc. | 8,600 | 429,324 | ||||||
462,454 | ||||||||
Specialty Retail – 0.9% | ||||||||
Hennes & Mauritz AB, Class B | 50,869 | 885,986 | ||||||
Technology Hardware, Storage & Peripherals – 2.5% | ||||||||
Asustek Computer, Inc. | 26,000 | 198,570 | ||||||
Canon, Inc. | 28,600 | 793,225 | ||||||
Catcher Technology Co. Ltd. | 23,000 | 181,984 | ||||||
Compal Electronics, Inc. | 301,000 | 194,329 | ||||||
Inventec Corp. | 258,000 | 207,061 | ||||||
Lite-On Technology Corp. | 175,000 | 246,634 | ||||||
Pegatron Corp. | 98,000 | 184,894 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Samsung Electronics Co. Ltd. | 9,718 | $ | 381,432 | |||||
2,388,129 | ||||||||
Textiles, Apparel & Luxury Goods – 2.0% | ||||||||
HUGO BOSS AG | 9,847 | 685,969 | ||||||
Pandora A/S | 14,448 | 605,538 | ||||||
Ruentex Industries Ltd. | 258,000 | 616,174 | ||||||
1,907,681 | ||||||||
Thrifts & Mortgage Finance – 0.8% | ||||||||
Indiabulls Housing Finance Ltd. | 80,969 | 809,588 | ||||||
Tobacco – 2.0% | ||||||||
British American Tobacco Malaysia Bhd. | 43,000 | 362,554 | ||||||
British American Tobacco plc | 1,247 | 48,607 | ||||||
Imperial Brands plc | 24,811 | 787,921 | ||||||
Japan Tobacco, Inc. | 32,700 | 756,320 | ||||||
1,955,402 | ||||||||
Trading Companies & Distributors – 1.1% | ||||||||
ITOCHU Corp. | 43,700 | 784,736 | ||||||
Marubeni Corp. | 4,300 | 30,697 | ||||||
Sumitomo Corp. | 17,200 | 245,472 | ||||||
1,060,905 | ||||||||
Transportation Infrastructure – 1.7% | ||||||||
Atlantia SpA | 10,449 | 284,792 | ||||||
Sydney Airport | 140,352 | 752,755 | ||||||
TAV Havalimanlari Holding A/S | 133,945 | 567,687 | ||||||
1,605,234 | ||||||||
Wireless Telecommunication Services – 2.4% | ||||||||
China Mobile Ltd. | 11,500 | 109,570 | ||||||
KDDI Corp. | 12,200 | 278,286 | ||||||
NTT DOCOMO, Inc. | 35,100 | 759,673 | ||||||
Vodafone Group plc | 611,589 | 1,132,163 | ||||||
2,279,692 | ||||||||
Total Common Stocks (Cost $93,337,637) |
| 93,738,045 |
See Accompanying Notes to the Financial Statements.
252 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(d) – 1.4% | ||||||||
REPURCHASE AGREEMENTS – 1.4% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $1,301,230, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $1,327,259 | $ | 1,301,131 | $ | 1,301,131 | ||||
Total Investments – 99.1% (Cost $94,638,768) |
| 95,039,176 | ||||||
Other Assets Less Liabilities – 0.9% |
| 908,000 | ||||||
NET ASSETS – 100.0% |
| $ | 95,947,176 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $5,363,100, collateralized in the form of cash with a value of $1,301,131 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $852,493 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.63%, and maturity dates ranging from May 15, 2019 – November 15, |
2048 and $3,544,929 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from July 15, 2019 – November 2, 2086; a total value of $5,698,553. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Represents less than 0.05% of net assets. |
(d) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $1,301,131. |
Percentages shown are based on Net Assets.
Abbreviations
CVA – Dutch Certification
GDR – Global Depositary Receipt
NVDR –Non-Voting Depositary Receipt
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
SCA – Limited partnership with share capital
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 6,451,816 | ||
Aggregate gross unrealized depreciation | (6,475,824 | ) | ||
Net unrealized depreciation | $ | (24,008 | ) | |
Federal income tax cost | $ | 95,139,667 |
Futures Contracts
FlexShares® International Quality Dividend Defensive Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI EAFEE-Mini Index | 18 | 06/21/2019 | USD | $ | 1,725,300 | $ | 62,651 | |||||||||||||
MSCI Emerging MarketsE-Mini Index | 9 | 06/21/2019 | USD | 486,090 | 12,739 | |||||||||||||||
$ | 75,390 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 253 |
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Forward Foreign Currency Contracts | ||||||||||||||||||||||
FlexShares® International Quality Dividend Defensive Index Fund had the following outstanding contracts as of April 30, 2019: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 74,623 | JPMorgan Chase Bank | AUD | 105,364 | 06/19/2019 | $ | 374 | |||||||||||||||
USD | 25,990 | BNP Paribas SA | BRL* | 100,000 | 06/19/2019 | 772 | ||||||||||||||||
Total unrealized appreciation |
| $ | 1,146 | |||||||||||||||||||
NOK | 59,477 | Citibank NA | USD | 6,945 | 06/19/2019 | $ | (53 | ) | ||||||||||||||
Total unrealized depreciation |
| $ | (53 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 1,093 |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
AUD – Australian Dollar
BRL – Brazilian Real
NOK – Norwegian Krone
USD – US Dollar
See Accompanying Notes to the Financial Statements.
254 | FLEXSHARES SEMIANNUAL REPORT |
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, 2019:
Australia | 7.5 | % | ||
Belgium | 0.7 | |||
Brazil | 0.8 | |||
Canada | 4.5 | |||
China | 5.1 | |||
Czech Republic | 0.8 | |||
Denmark | 2.0 | |||
Finland | 2.6 | |||
France | 4.2 | |||
Germany | 2.7 | |||
Hong Kong | 1.7 | |||
India | 2.4 | |||
Indonesia | 0.2 | |||
Israel | 0.0 | † | ||
Italy | 3.9 | |||
Japan | 13.1 | |||
Malaysia | 0.4 | |||
Mexico | 0.9 | |||
Netherlands | 1.3 | |||
New Zealand | 0.6 | |||
Norway | 3.1 | |||
Peru | 0.2 | |||
Philippines | 0.7 | |||
Poland | 1.0 | |||
Portugal | 0.3 | |||
Russia | 4.1 | |||
Singapore | 0.2 | |||
South Africa | 1.1 | |||
South Korea | 0.8 | |||
Spain | 0.8 | |||
Sweden | 2.5 | |||
Switzerland | 4.7 | |||
Taiwan | 5.7 | |||
Thailand | 0.8 | |||
Turkey | 2.6 | |||
United Kingdom | 13.7 | |||
Other1 | 2.3 | |||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 255 |
Schedule of Investments
FlexShares® International Quality Dividend Dynamic Index Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.1% | ||||||||
Auto Components – 2.0% | ||||||||
Faurecia SA | 7,524 | $ | 381,808 | |||||
Magna International, Inc. | 2,448 | 135,703 | ||||||
Xinyi Glass Holdings Ltd. | 360,000 | 411,145 | ||||||
928,656 | ||||||||
Automobiles – 2.0% | ||||||||
Honda Motor Co. Ltd. | 3,600 | 100,234 | ||||||
Subaru Corp. | 16,200 | 395,709 | ||||||
Tofas Turk Otomobil Fabrikasi A/S | 115,272 | 346,231 | ||||||
Yamaha Motor Co. Ltd. | 3,600 | 73,956 | ||||||
916,130 | ||||||||
Banks – 9.6% | ||||||||
Agricultural Bank of China Ltd., Class H | 252,000 | 116,277 | ||||||
Australia & New Zealand Banking Group Ltd. | 15,660 | 299,806 | ||||||
Bank of China Ltd., Class H | 432,000 | 205,940 | ||||||
Bank Polska Kasa Opieki SA | 3,150 | 93,559 | ||||||
China Construction Bank Corp., Class H | 234,000 | 206,697 | ||||||
China Merchants Bank Co. Ltd., Class H(a) | 108,000 | 534,810 | ||||||
HSBC Holdings plc | 5,022 | 43,675 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 54,000 | 40,541 | ||||||
ING Groep NV(a) | 15,750 | 200,445 | ||||||
National Australia Bank Ltd. | 13,932 | 248,583 | ||||||
Royal Bank of Canada | 12,456 | 988,646 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 44,226 | 421,568 | ||||||
Standard Bank Group Ltd. | 34,560 | 479,724 | ||||||
Swedbank AB, Class A | 21,042 | 340,969 | ||||||
Toronto-Dominion Bank (The) | 270 | 15,338 | ||||||
VTB Bank PJSC | 232,411,428 | 127,763 | ||||||
4,364,341 | ||||||||
Beverages – 0.1% | ||||||||
Ambev SA | 9,000 | 42,080 |
Investments | Shares | Value | ||||||
Building Products – 0.3% | ||||||||
Cie de Saint-Gobain | 2,970 | $ | 121,290 | |||||
Capital Markets – 3.7% | ||||||||
China Huarong Asset Management Co. Ltd., Class H* (b) | 2,034,000 | 435,557 | ||||||
CI Financial Corp. | 3,636 | 52,086 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 10,926 | 378,804 | ||||||
Macquarie Group Ltd. | 5,544 | 525,619 | ||||||
Natixis SA | 14,094 | 82,893 | ||||||
SBI Holdings, Inc. | 9,000 | 191,758 | ||||||
1,666,717 | ||||||||
Chemicals – 2.7% | ||||||||
Covestro AG(b) | 7,866 | 429,752 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 3,600 | 53,657 | ||||||
Nutrien Ltd. | 2,718 | 146,811 | ||||||
Showa Denko KK | 12,600 | 425,939 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H | 360,000 | 162,898 | ||||||
1,219,057 | ||||||||
Construction & Engineering – 1.1% | ||||||||
ACS Actividades de Construccion y Servicios SA | 10,692 | 490,445 | ||||||
Diversified Financial Services – 1.4% | ||||||||
EXOR NV | 6,984 | 464,609 | ||||||
Wendel SA | 1,134 | 156,826 | ||||||
621,435 | ||||||||
Diversified Telecommunication Services – 2.3% | ||||||||
O2 Czech Republic A/S | 13,392 | 145,420 | ||||||
Telefonica SA | 28,080 | 233,880 | ||||||
Telenor ASA | 23,760 | 475,887 | ||||||
Telia Co. AB | 24,786 | 105,435 | ||||||
Telstra Corp. Ltd. | 32,760 | 77,936 | ||||||
1,038,558 |
See Accompanying Notes to the Financial Statements.
256 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – 2.5% | ||||||||
Endesa SA | 18,252 | $ | 454,306 | |||||
Enel SpA | 37,692 | 238,199 | ||||||
Federal Grid Co. Unified Energy System PJSC | 173,163,096 | 445,125 | ||||||
1,137,630 | ||||||||
Electrical Equipment – 1.3% | ||||||||
ABB Ltd. (Registered)* (a) | 20,898 | 430,060 | ||||||
Mitsubishi Electric Corp. | 10,800 | 153,406 | ||||||
583,466 | ||||||||
Electronic Equipment, Instruments & Components – 1.1% | ||||||||
AU Optronics Corp. | 234,000 | 83,677 | ||||||
Hitachi Ltd. | 4,300 | 142,426 | ||||||
Omron Corp. | 2,400 | 128,215 | ||||||
Yaskawa Electric Corp. | 3,600 | 132,364 | ||||||
486,682 | ||||||||
Food & Staples Retailing – 1.1% | ||||||||
InRetail Peru Corp.* (b) | 2,610 | 101,790 | ||||||
President Chain Store Corp. | 43,000 | 400,764 | ||||||
502,554 | ||||||||
Food Products – 1.8% | ||||||||
China Agri-Industries Holdings Ltd. | 252,000 | 81,265 | ||||||
Mowi ASA | 19,278 | 416,659 | ||||||
Nestle SA (Registered) | 3,114 | 299,635 | ||||||
797,559 | ||||||||
Health Care Equipment & Supplies – 0.7% | ||||||||
Alcon, Inc.* | 745 | 42,901 | ||||||
Hoya Corp. | 4,200 | 294,707 | ||||||
337,608 | ||||||||
Hotels, Restaurants & Leisure – 1.2% | ||||||||
Sands China Ltd. | 93,600 | 514,207 | ||||||
Wynn Macau Ltd. | 7,200 | 20,649 | ||||||
534,856 | ||||||||
Household Durables – 0.9% | ||||||||
Persimmon plc | 14,418 | 420,279 |
Investments | Shares | Value | ||||||
Insurance – 8.3% | ||||||||
Aegon NV | 74,232 | $ | 387,341 | |||||
Allianz SE (Registered) | 3,672 | 883,947 | ||||||
AXA SA(a) | 11,664 | 310,391 | ||||||
BB Seguridade Participacoes SA | 16,200 | 115,893 | ||||||
Dai-ichi Life Holdings, Inc. | 30,600 | 438,222 | ||||||
Legal & General Group plc | 137,322 | 498,033 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 18,000 | 216,700 | ||||||
Poste Italiane SpA(b) | 13,050 | 139,085 | ||||||
Powszechny Zaklad Ubezpieczen SA | 13,932 | 152,855 | ||||||
Tokio Marine Holdings, Inc. | 7,200 | 362,150 | ||||||
Zurich Insurance Group AG | 828 | 264,001 | ||||||
3,768,618 | ||||||||
Interactive Media & Services – 0.5% | ||||||||
Tencent Holdings Ltd. | 4,700 | 232,442 | ||||||
Internet & Direct Marketing Retail – 0.7% | ||||||||
Naspers Ltd., Class N | 1,242 | 316,654 | ||||||
IT Services – 1.2% | ||||||||
Nomura Research Institute Ltd. | 10,800 | 526,545 | ||||||
Machinery – 5.2% | ||||||||
Atlas Copco AB, Class A(a) | 17,748 | 551,101 | ||||||
Atlas Copco AB, Class B | 522 | 14,842 | ||||||
FANUC Corp. | 2,400 | 447,677 | ||||||
NSK Ltd. | 41,400 | 427,475 | ||||||
Sinotruk Hong Kong Ltd.(a) | 171,000 | 370,100 | ||||||
SMC Corp. | 1,300 | 537,625 | ||||||
Weichai Power Co. Ltd., Class H(a) | 18,000 | 29,413 | ||||||
2,378,233 | ||||||||
Media – 2.3% | ||||||||
Eutelsat Communications SA | 13,374 | 241,161 | ||||||
ITV plc | 223,272 | 397,745 | ||||||
ProSiebenSat.1 Media SE | 24,534 | 385,896 | ||||||
1,024,802 | ||||||||
Metals & Mining – 6.7% | ||||||||
BHP Group plc | 6,300 | 148,606 | ||||||
Cia Siderurgica Nacional SA* | 151,200 | 556,527 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 257 |
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Eregli Demir ve Celik Fabrikalari TAS | 147,384 | $ | 226,156 | |||||
Evraz plc | 63,036 | 515,742 | ||||||
Kumba Iron Ore Ltd. | 14,094 | 421,407 | ||||||
Novolipetsk Steel PJSC | 109,044 | 288,915 | ||||||
Rio Tinto plc | 7,236 | 421,193 | ||||||
Severstal PJSC | 28,332 | 458,559 | ||||||
3,037,105 | ||||||||
Multiline Retail – 0.4% | ||||||||
Wesfarmers Ltd. | 6,822 | 172,908 | ||||||
Multi-Utilities – 0.3% | ||||||||
Engie SA | 10,368 | 153,434 | ||||||
Oil, Gas & Consumable Fuels – 5.9% | ||||||||
BP plc | 119,568 | 871,340 | ||||||
China Petroleum & Chemical Corp., Class H | 144,000 | 110,679 | ||||||
China Shenhua Energy Co. Ltd., Class H | 72,000 | 159,135 | ||||||
Eni SpA | 13,806 | 235,459 | ||||||
Equinor ASA | 7,614 | 169,450 | ||||||
Inter Pipeline Ltd.(a) | 24,714 | 400,877 | ||||||
OMV AG | 8,586 | 459,466 | ||||||
TransCanada Corp. | 5,922 | 281,484 | ||||||
2,687,890 | ||||||||
Paper & Forest Products – 0.3% | ||||||||
UPM-Kymmene OYJ | 5,400 | 151,960 | ||||||
Personal Products – 2.3% | ||||||||
Kose Corp. | 2,600 | 486,734 | ||||||
L’Oreal SA(a) | 1,800 | 494,430 | ||||||
Pola Orbis Holdings, Inc. | 1,800 | 56,566 | ||||||
1,037,730 | ||||||||
Pharmaceuticals – 7.8% | ||||||||
AstraZeneca plc | 7,380 | 550,895 | ||||||
Bayer AG (Registered) | 522 | 34,714 | ||||||
GlaxoSmithKline plc | 52,902 | 1,085,106 | ||||||
Livzon Pharmaceutical Group, Inc., Class H | 122,400 | 444,643 | ||||||
Novartis AG (Registered) | 3,726 | 304,260 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Orion OYJ, Class B | 12,816 | $ | 425,573 | |||||
Roche Holding AG | 1,062 | 279,934 | ||||||
Roche Holding AG – BR | 504 | 131,861 | ||||||
Sanofi(a) | 3,420 | 297,003 | ||||||
3,553,989 | ||||||||
Professional Services – 1.2% | ||||||||
Recruit Holdings Co. Ltd. | 18,000 | 538,020 | ||||||
Real Estate Management & Development – 4.8% | ||||||||
Agile Group Holdings Ltd. | 324,000 | 489,795 | ||||||
China Evergrande Group(a) | 54,000 | 173,108 | ||||||
Daiwa House Industry Co. Ltd. | 1,800 | 50,279 | ||||||
Future Land Development Holdings Ltd. | 108,000 | 128,712 | ||||||
Ruentex Development Co. Ltd. | 144,000 | 197,586 | ||||||
Shimao Property Holdings Ltd. | 171,000 | 520,930 | ||||||
SOHO China Ltd.* | 1,035,000 | 374,665 | ||||||
Wharf Holdings Ltd. (The) | 54,000 | 155,212 | ||||||
Yuzhou Properties Co. Ltd. | 126,549 | 66,780 | ||||||
2,157,067 | ||||||||
Semiconductors & Semiconductor Equipment – 4.6% | ||||||||
Disco Corp.(a) | 2,900 | 496,808 | ||||||
Globalwafers Co. Ltd. | 38,000 | 414,420 | ||||||
Novatek Microelectronics Corp. | 78,000 | 508,625 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 13,000 | 108,961 | ||||||
Tokyo Electron Ltd. | 900 | 142,586 | ||||||
Vanguard International Semiconductor Corp. | 180,000 | 399,016 | ||||||
2,070,416 | ||||||||
Software – 1.0% | ||||||||
Trend Micro, Inc. | 9,000 | 449,293 | ||||||
Specialty Retail – 1.0% | ||||||||
Hennes & Mauritz AB, Class B | 25,956 | 452,076 | ||||||
Technology Hardware, Storage & Peripherals – 1.1% | ||||||||
Catcher Technology Co. Ltd. | 11,000 | 87,036 | ||||||
Lite-On Technology Corp. | 90,000 | 126,841 | ||||||
Logitech International SA (Registered) | 270 | 10,556 |
See Accompanying Notes to the Financial Statements.
258 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Samsung Electronics Co. Ltd. | 3,852 | $ | 151,191 | |||||
Samsung Electronics Co. Ltd. (Preference) | 3,942 | 125,534 | ||||||
501,158 | ||||||||
Textiles, Apparel & Luxury Goods – 1.0% | ||||||||
HUGO BOSS AG | 4,788 | 333,545 | ||||||
Ruentex Industries Ltd. | 54,000 | 128,967 | ||||||
462,512 | ||||||||
Tobacco – 2.0% | ||||||||
Imperial Brands plc | 14,202 | 451,012 | ||||||
Japan Tobacco, Inc. | 19,800 | 457,955 | ||||||
908,967 | ||||||||
Trading Companies & Distributors – 2.0% | ||||||||
Ashtead Group plc | 13,374 | 369,971 | ||||||
ITOCHU Corp. | 9,000 | 161,616 | ||||||
Toyota Tsusho Corp. | 11,600 | 383,282 | ||||||
914,869 | ||||||||
Transportation Infrastructure – 0.7% | ||||||||
Atlantia SpA | 12,078 | 329,191 | ||||||
Wireless Telecommunication Services – 1.0% | ||||||||
Vodafone Group plc | 245,520 | 454,502 | ||||||
Total Common Stocks (Cost $43,072,235) |
| 44,489,724 |
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(c) – 1.2% | ||||||||
REPURCHASE AGREEMENTS – 1.2% | ||||||||
Citigroup Global Markets, Inc., 2.75%, dated 4/30/2019, due 5/1/2019, repurchase price $532,118, collateralized by various U.S. Treasury Securities, 0.00%, maturing 5/2/2019 – 11/7/2019; total market value $542,761 (Cost $532,077) | $ | 532,077 | $ | 532,077 | ||||
Total Investments – 99.3% (Cost $43,604,312) |
| 45,021,801 | ||||||
Other Assets Less Liabilities – 0.7% |
| 323,435 | ||||||
NET ASSETS – 100.0% |
| $ | 45,345,236 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $3,664,010, collateralized in the form of cash with a value of $532,077 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $1,384,456 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 4.50%, and maturity dates ranging from May 15, 2019 – August 15, 2047 and $1,992,363 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.50%, and maturity dates ranging from October 7, 2019 – March 22, 2068; a total value of $3,908,896. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | The security was purchased with cash collateral held from securities on loan at April 30, 2019. The total value of securities purchased was $532,077. |
Percentages shown are based on Net Assets.
Abbreviations
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.
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 259 |
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 3,709,152 | ||
Aggregate gross unrealized depreciation | (2,421,122 | ) | ||
Net unrealized appreciation | $ | 1,288,030 | ||
Federal income tax cost | $ | 43,759,447 |
Futures Contracts
FlexShares® International Quality Dividend Dynamic Index Fund had the following open futures contracts as of April 30, 2019:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI EAFEE-Mini Index | 7 | 06/21/2019 | USD | $ | 670,950 | $ | 20,154 | |||||||||||||
MSCI Emerging MarketsE-Mini Index | 4 | 06/21/2019 | USD | 216,040 | 5,522 | |||||||||||||||
$ | 25,676 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
260 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
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, 2019:
Australia | 2.9 | % | ||
Austria | 1.0 | |||
Brazil | 1.6 | |||
Canada | 4.5 | |||
China | 11.2 | |||
Czech Republic | 0.3 | |||
Finland | 1.3 | |||
France | 4.9 | |||
Germany | 4.6 | |||
Hong Kong | 3.3 | |||
Italy | 3.1 | |||
Japan | 17.8 | |||
Netherlands | 1.3 | |||
Norway | 2.3 | |||
Peru | 0.2 | |||
Poland | 0.5 | |||
Russia | 2.9 | |||
South Africa | 2.7 | |||
South Korea | 0.6 | |||
Spain | 2.6 | |||
Sweden | 4.2 | |||
Switzerland | 3.9 | |||
Taiwan | 5.4 | |||
Turkey | 1.3 | |||
United Kingdom | 13.7 | |||
Other1 | 1.9 | |||
100.0 | % |
1 | Includes anynon-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 261 |
Schedule of Investments
FlexShares® iBoxx3-Year Target Duration TIPS Index Fund
April 30, 2019 (Unaudited)
Investments | Principal Amount | Value | ||||||
U.S. TREASURY OBLIGATIONS – 99.8% | ||||||||
U.S. Treasury Inflation Linked Bonds | ||||||||
2.38%, 1/15/2025 | $ | 42,838,564 | $ | 47,515,043 | ||||
2.00%, 1/15/2026 | 29,050,360 | 31,966,075 | ||||||
2.38%, 1/15/2027 | 23,589,929 | 26,892,786 | ||||||
U.S. Treasury Inflation Linked Notes | ||||||||
1.25%, 7/15/2020 | 42,576,118 | 43,129,908 | ||||||
1.13%, 1/15/2021 | 48,309,243 | 48,888,769 | ||||||
0.13%, 4/15/2021(a) | 54,589,272 | 54,164,510 | ||||||
0.63%, 7/15/2021 | 45,758,832 | 46,147,906 | ||||||
0.13%, 1/15/2022 | 52,429,115 | 52,014,970 | ||||||
0.13%, 4/15/2022 | 128,733,648 | 127,501,528 | ||||||
0.13%, 7/15/2022 | 126,160,680 | 125,587,640 | ||||||
0.13%, 1/15/2023 | 125,565,313 | 124,319,194 | ||||||
0.63%, 4/15/2023 | 133,851,505 | 134,930,062 | ||||||
0.38%, 7/15/2023 | 124,124,362 | 124,569,742 | ||||||
0.63%, 1/15/2024(a) | 50,591,978 | 51,148,948 | ||||||
0.50%, 4/15/2024 | 19,042,750 | 19,116,752 | ||||||
0.13%, 7/15/2024 | 49,832,054 | 49,324,922 | ||||||
0.25%, 1/15/2025 | 49,908,543 | 49,394,022 | ||||||
0.38%, 7/15/2025 | 49,922,363 | 49,873,558 | ||||||
0.63%, 1/15/2026 | 51,563,355 | 52,049,558 | ||||||
Total U.S. Treasury Obligations (Cost $1,252,946,409) |
| 1,258,535,893 | ||||||
Total Investments – 99.8% (Cost $1,252,946,409) |
| 1,258,535,893 | ||||||
Other Assets Less Liabilities – 0.2% |
| 2,105,283 | ||||||
NET ASSETS – 100.0% |
| $ | 1,260,641,176 |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $9,466,221, collateralized in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 4.63%, and maturity dates ranging from May 28, 2019 – May 15, 2046; a total value of $10,459,935. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 6,294,014 | ||
Aggregate gross unrealized depreciation | (1,305,950 | ) | ||
Net unrealized appreciation | $ | 4,988,064 | ||
Federal income tax cost | $ | 1,253,547,829 |
See Accompanying Notes to the Financial Statements.
262 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® iBoxx5-Year Target Duration TIPS Index Fund
April 30, 2019 (Unaudited)
Investments | Principal Amount | Value | ||||||
U.S. TREASURY OBLIGATIONS – 99.5% | ||||||||
U.S. Treasury Inflation Linked Bonds | ||||||||
2.38%, 1/15/2025 | $ | 23,823,043 | $ | 26,423,689 | ||||
2.00%, 1/15/2026 | 26,839,425 | 29,533,234 | ||||||
2.38%, 1/15/2027(a) | 21,797,496 | 24,849,391 | ||||||
1.75%, 1/15/2028 | 11,957,307 | 13,183,818 | ||||||
3.63%, 4/15/2028(a) | 16,667,795 | 21,110,705 | ||||||
2.50%, 1/15/2029 | 10,572,603 | 12,504,151 | ||||||
3.88%, 4/15/2029 | 19,251,128 | 25,377,246 | ||||||
3.38%, 4/15/2032 | 4,521,486 | 6,074,732 | ||||||
U.S. Treasury Inflation Linked Notes | ||||||||
0.63%, 4/15/2023 | 30,336,147 | 30,580,591 | ||||||
0.38%, 7/15/2023 | 28,263,750 | 28,365,165 | ||||||
0.63%, 1/15/2024(a) | 28,205,840 | 28,516,360 | ||||||
0.50%, 4/15/2024 | 11,024,750 | 11,067,594 | ||||||
0.13%, 7/15/2024 | 27,667,914 | 27,386,343 | ||||||
0.25%, 1/15/2025 | 27,755,191 | 27,469,054 | ||||||
0.38%, 7/15/2025 | 27,707,524 | 27,680,437 | ||||||
0.63%, 1/15/2026 | 47,600,626 | 48,049,463 | ||||||
0.13%, 7/15/2026(a) | 40,948,177 | 40,009,768 | ||||||
0.38%, 1/15/2027 | 42,511,625 | 42,070,293 | ||||||
0.38%, 7/15/2027 | 24,159,723 | 23,937,338 | ||||||
0.50%, 1/15/2028 | 25,224,714 | 25,144,093 | ||||||
0.75%, 7/15/2028 | 23,443,193 | 23,941,891 | ||||||
0.88%, 1/15/2029 | 15,231,432 | 15,696,704 | ||||||
Total U.S. Treasury Obligations (Cost $556,015,940) |
| 558,972,060 | ||||||
Total Investments – 99.5% (Cost $556,015,940) |
| 558,972,060 | ||||||
Other Assets Less Liabilities – 0.5% |
| 2,601,538 | ||||||
NET ASSETS – 100.0% |
| $ | 561,573,598 |
(a) | The security or a portion of this security is on loan at April 30, 2019. The total value of securities on loan at April 30, 2019 was $54,417,027, collateralized by $53,137,345 in U.S. Government Treasury Securities, interest rates ranging from 0.00% – 4.63%, and maturity dates ranging from May 9, 2019 – February 15, 2048 and $10,809,903 in Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 5.75%, and maturity dates ranging from July��17, 2019 – June 22, 2066; a total value of $63,947,248. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 3,219,595 | ||
Aggregate gross unrealized depreciation | (725,913 | ) | ||
Net unrealized appreciation | $ | 2,493,682 | ||
Federal income tax cost | $ | 556,478,378 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 263 |
Schedule of Investments
FlexShares® Disciplined Duration MBS Index Fund
April 30, 2019 (Unaudited)
Investments | Principal Amount | Value | ||||||
MORTGAGE-BACKED SECURITIES – 99.2% | ||||||||
FHLMC |
| |||||||
4.00%, 7/1/2024 | $ | 205,992 | $ | 212,671 | ||||
4.00%, 9/1/2024 | 140,736 | 145,300 | ||||||
4.00%, 4/1/2025 | 54,326 | 56,088 | ||||||
4.00%, 6/1/2025 | 181,374 | 187,255 | ||||||
3.50%, 10/1/2025 | 259,408 | 265,272 | ||||||
4.00%, 10/1/2025 | 127,046 | 131,166 | ||||||
3.50%, 11/1/2025 | 232,619 | 237,878 | ||||||
3.50%, 2/1/2026 | 81,799 | 83,867 | ||||||
4.00%, 3/1/2026 | 148,583 | 154,171 | ||||||
4.00%, 4/1/2026 | 458,519 | 473,468 | ||||||
3.50%, 6/1/2026 | 400,006 | 409,651 | ||||||
3.00%, 9/1/2026 | 447,770 | 451,470 | ||||||
3.50%, 10/1/2026 | 106,188 | 108,862 | ||||||
3.00%, 12/1/2026 | 141,489 | 142,660 | ||||||
3.00%, 1/1/2027 | 170,938 | 172,350 | ||||||
2.50%, 4/1/2027 | 206,431 | 205,487 | ||||||
4.00%, 5/1/2027 | 155,145 | 160,175 | ||||||
3.50%, 8/1/2027 | 184,517 | 188,688 | ||||||
2.50%, 11/1/2027 | 332,126 | 330,344 | ||||||
2.50%, 2/1/2028 | 48,658 | 48,435 | ||||||
2.50%, 4/1/2028 | 188,626 | 187,762 | ||||||
2.50%, 11/1/2028 | 19,154 | 19,066 | ||||||
3.00%, 11/1/2028 | 245,079 | 247,109 | ||||||
3.00%, 1/1/2029 | 186,843 | 188,391 | ||||||
2.00%, 10/1/2031 | 149,567 | 145,093 | ||||||
2.00%, 11/1/2031 | 254,313 | 246,706 | ||||||
5.50%, 10/1/2032 | 106,729 | 116,711 | ||||||
3.00%, 4/1/2033 | 261,005 | 262,293 | ||||||
6.00%, 4/1/2034 | 63,378 | 70,458 | ||||||
5.00%, 5/1/2034 | 449,234 | 482,507 | ||||||
3.00%, 5/1/2035 | 173,963 | 174,359 | ||||||
5.50%, 5/1/2035 | 279,455 | 306,921 | ||||||
6.00%, 5/1/2035 | 125,724 | 139,882 | ||||||
5.50%, 6/1/2035 | 55,884 | 60,821 | ||||||
5.00%, 7/1/2035 | 65,133 | 70,034 | ||||||
5.50%, 10/1/2035 | 34,116 | 37,436 | ||||||
3.00%, 11/1/2035 | 176,651 | 177,524 | ||||||
6.00%, 12/1/2035 | 122,112 | 135,808 | ||||||
5.50%, 1/1/2036 | 156,399 | 171,643 | ||||||
6.00%, 5/1/2036 | 261,691 | 290,705 | ||||||
5.50%, 12/1/2036 | 161,296 | 176,822 | ||||||
5.50%, 2/1/2037 | 45,472 | 49,876 | ||||||
6.00%, 4/1/2037 | 61,464 | 68,379 |
Investments | Principal Amount | Value | ||||||
5.50%, 7/1/2037 | $ | 109,967 | $ | 120,762 | ||||
5.50%, 9/1/2037 | 51,563 | 56,596 | ||||||
6.00%, 9/1/2037 | 205,072 | 228,092 | ||||||
5.50%, 12/1/2037 | 97,531 | 106,486 | ||||||
5.50%, 1/1/2038 | 25,785 | 28,304 | ||||||
5.00%, 7/1/2038 | 71,247 | 76,583 | ||||||
5.50%, 7/1/2038 | 5,652 | 6,187 | ||||||
5.50%, 8/1/2038 | 244,301 | 266,522 | ||||||
5.00%, 10/1/2038 | 51,825 | 55,704 | ||||||
5.50%, 12/1/2038 | 18,488 | 20,186 | ||||||
5.00%, 2/1/2039 | 506,491 | 542,887 | ||||||
5.00%, 5/1/2039 | 116,759 | 126,663 | ||||||
5.00%, 8/1/2039 | 9,258 | 9,951 | ||||||
5.00%, 9/1/2039 | 11,561 | 12,427 | ||||||
4.50%, 10/1/2039 | 23,035 | 24,509 | ||||||
5.50%, 1/1/2040 | 89,418 | 97,645 | ||||||
4.00%, 2/1/2040 | 14,155 | 14,668 | ||||||
4.50%, 4/1/2040 | 217,800 | 231,725 | ||||||
6.00%, 4/1/2040 | 92,804 | 103,122 | ||||||
6.00%, 5/1/2040 | 204,312 | 227,037 | ||||||
5.50%, 6/1/2040 | 63,708 | 69,174 | ||||||
6.00%, 7/1/2040 | 783,582 | 871,371 | ||||||
3.50%, 12/1/2040 | 156,380 | 159,209 | ||||||
4.00%, 1/1/2041 | 107,285 | 111,296 | ||||||
4.50%, 3/1/2041 | 155,357 | 165,300 | ||||||
4.00%, 4/1/2041 | 111,261 | 116,224 | ||||||
5.50%, 4/1/2041 | 24,583 | 26,409 | ||||||
5.50%, 6/1/2041 | 426,114 | 466,959 | ||||||
4.50%, 8/1/2041 | 146,886 | 156,280 | ||||||
3.50%, 11/1/2041 | 219,239 | 223,206 | ||||||
4.00%, 1/1/2042 | 123,973 | 129,650 | ||||||
3.50%, 2/1/2042 | 224,946 | 229,016 | ||||||
5.00%, 2/1/2042 | 134,700 | 145,095 | ||||||
4.00%, 4/1/2042 | 105,112 | 108,916 | ||||||
3.00%, 3/1/2043 | 35,609 | 35,389 | ||||||
3.00%, 4/1/2043 | 121,009 | 120,260 | ||||||
3.00%, 6/1/2043 | 181,535 | 180,412 | ||||||
4.50%, 3/1/2044 | 100,806 | 106,814 | ||||||
4.00%, 6/1/2044 | 16,496 | 17,046 | ||||||
4.50%, 7/1/2044 | 168,884 | 178,441 | ||||||
4.00%, 8/1/2044 | 48,193 | 49,760 | ||||||
5.00%, 8/1/2044 | 84,214 | 90,462 | ||||||
4.50%, 9/1/2044 | 73,736 | 78,017 | ||||||
4.50%, 12/1/2044 | 39,185 | 41,242 | ||||||
3.00%, 7/1/2045 | 34,838 | 34,537 |
See Accompanying Notes to the Financial Statements.
264 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Disciplined Duration MBS Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
MORTGAGE-BACKED SECURITIES – (continued) | ||||||||
4.00%, 7/1/2045 | $ | 120,195 | $ | 123,953 | ||||
4.50%, 9/1/2045 | 59,376 | 62,102 | ||||||
4.00%, 10/1/2045 | 176,913 | 182,444 | ||||||
4.50%, 12/1/2045 | 64,130 | 67,492 | ||||||
4.00%, 4/1/2046 | 88,354 | 91,098 | ||||||
3.50%, 5/1/2046 | 55,608 | 56,362 | ||||||
4.00%, 5/1/2046 | 37,608 | 38,774 | ||||||
4.50%, 5/1/2046 | 93,127 | 97,863 | ||||||
2.50%, 12/1/2046 | 305,032 | 293,559 | ||||||
4.50%, 3/1/2047 | 119,259 | 125,498 | ||||||
3.00%, 9/1/2047 | 88,971 | 88,131 | ||||||
FNMA |
| |||||||
4.50%, 1/1/2020 | 2,958 | 3,012 | ||||||
4.50%, 4/1/2020 | 5,330 | 5,426 | ||||||
4.50%, 11/1/2020 | 18,219 | 18,550 | ||||||
4.00%, 5/1/2024 | 106,107 | 109,342 | ||||||
4.00%, 1/1/2025 | 182,996 | 188,505 | ||||||
3.50%, 9/1/2025 | 107,027 | 109,341 | ||||||
4.00%, 9/1/2025 | 266,003 | 273,998 | ||||||
3.00%, 11/1/2025 | 180,098 | 181,775 | ||||||
3.50%, 11/1/2025 | 194,330 | 198,530 | ||||||
3.00%, 12/1/2025 | 144,040 | 145,384 | ||||||
3.50%, 12/1/2025 | 137,006 | 139,967 | ||||||
3.00%, 1/1/2026 | 120,319 | 121,436 | ||||||
3.50%, 2/1/2026 | 240,175 | 245,366 | ||||||
4.00%, 4/1/2026 | 83,879 | 86,896 | ||||||
4.00%, 5/1/2026 | 267,997 | 276,129 | ||||||
3.00%, 8/1/2026 | 260,942 | 263,374 | ||||||
2.50%, 11/1/2026 | 56,253 | 55,807 | ||||||
3.00%, 12/1/2026 | 322,588 | 325,600 | ||||||
4.00%, 5/1/2027 | 188,731 | 194,436 | ||||||
2.50%, 6/1/2027 | 20,930 | 20,834 | ||||||
3.50%, 6/1/2027 | 261,959 | 267,622 | ||||||
2.50%, 10/1/2027 | 218,569 | 217,566 | ||||||
2.50%, 12/1/2027 | 115,241 | 114,712 | ||||||
3.50%, 1/1/2028 | 531,455 | 543,929 | ||||||
3.00%, 3/1/2028 | 41,873 | 42,265 | ||||||
3.00%, 6/1/2028 | 610,665 | 616,291 | ||||||
3.00%, 7/1/2028 | 39,576 | 39,870 | ||||||
2.50%, 8/1/2028 | 67,990 | 67,678 | ||||||
2.50%, 9/1/2028 | 268,944 | 267,710 | ||||||
3.00%, 11/1/2028 | 36,286 | 36,569 | ||||||
4.00%, 7/1/2029 | 300,142 | 309,212 | ||||||
4.00%, 11/1/2029 | 131,282 | 135,247 | ||||||
3.50%, 10/1/2030 | 127,606 | 129,604 |
Investments | Principal Amount | Value | ||||||
3.50%, 11/1/2030 | $ | 29,544 | $ | 30,007 | ||||
2.00%, 9/1/2031 | 163,541 | 158,538 | ||||||
2.00%, 11/1/2031 | 230,552 | 223,498 | ||||||
6.00%, 12/1/2032 | 24,768 | 27,725 | ||||||
3.00%, 3/1/2033 | 115,175 | 115,305 | ||||||
3.00%, 7/1/2033 | 32,878 | 32,915 | ||||||
3.00%, 10/1/2033 | 184,701 | 184,909 | ||||||
6.00%, 8/1/2034 | 92,323 | 103,251 | ||||||
6.50%, 9/1/2034 | 110,804 | 127,054 | ||||||
5.00%, 12/1/2034 | 43,084 | 46,247 | ||||||
5.00%, 1/1/2035 | 54,979 | 59,014 | ||||||
5.00%, 6/1/2035 | 287,083 | 308,139 | ||||||
5.00%, 7/1/2035 | 113,826 | 122,109 | ||||||
5.00%, 11/1/2035 | 107,272 | 115,184 | ||||||
6.00%, 11/1/2035 | 40,586 | 45,432 | ||||||
5.00%, 2/1/2036 | 113,749 | 122,699 | ||||||
5.50%, 12/1/2036 | 121,981 | 134,082 | ||||||
6.50%, 12/1/2036 | 188,814 | 211,156 | ||||||
5.50%, 1/1/2037 | 35,743 | 39,379 | ||||||
5.50%, 2/1/2037 | 10,855 | 11,936 | ||||||
6.00%, 8/1/2037 | 76,717 | 85,870 | ||||||
6.00%, 9/1/2037 | 160,340 | 179,806 | ||||||
6.00%, 12/1/2037 | 172,705 | 192,990 | ||||||
5.00%, 3/1/2038 | 232,692 | 249,382 | ||||||
5.00%, 5/1/2038 | 97,447 | 104,630 | ||||||
5.50%, 6/1/2038 | 148,676 | 163,708 | ||||||
5.50%, 9/1/2038 | 36,352 | 40,000 | ||||||
6.00%, 9/1/2038 | 62,595 | 70,070 | ||||||
5.50%, 11/1/2038 | 186,666 | 203,779 | ||||||
5.00%, 1/1/2039 | 12,191 | 13,068 | ||||||
5.50%, 3/1/2039 | 192,646 | 210,706 | ||||||
4.50%, 4/1/2039 | 117,093 | 124,193 | ||||||
5.50%, 4/1/2039 | 192,338 | 211,753 | ||||||
5.50%, 8/1/2039 | 98,893 | 107,618 | ||||||
5.50%, 1/1/2040 | 34,702 | 37,363 | ||||||
4.50%, 4/1/2040 | 21,342 | 22,626 | ||||||
5.50%, 4/1/2040 | 41,289 | 45,193 | ||||||
6.00%, 6/1/2040 | 460,758 | 515,713 | ||||||
4.50%, 7/1/2040 | 214,715 | 227,625 | ||||||
4.00%, 9/1/2040 | 90,411 | 93,619 | ||||||
4.00%, 11/1/2040 | 115,356 | 119,449 | ||||||
3.50%, 1/1/2041 | 40,335 | 41,032 | ||||||
3.50%, 2/1/2041 | 74,083 | 75,362 | ||||||
4.00%, 2/1/2041 | 157,489 | 163,076 | ||||||
4.50%, 4/1/2041 | 103,883 | 110,111 | ||||||
5.50%, 4/1/2041 | 13,124 | 14,101 | ||||||
4.50%, 6/1/2041 | 34,476 | 36,540 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 265 |
FlexShares® Disciplined Duration MBS Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
MORTGAGE-BACKED SECURITIES – (continued) | ||||||||
5.50%, 7/1/2041 | $ | 84,558 | $ | 92,132 | ||||
6.00%, 7/1/2041 | 260,203 | 291,235 | ||||||
4.50%, 8/1/2041 | 45,365 | 48,134 | ||||||
5.00%, 8/1/2041 | 225,301 | 241,815 | ||||||
5.50%, 8/1/2041 | 270,492 | 291,669 | ||||||
5.50%, 9/1/2041 | 167,343 | 183,509 | ||||||
4.00%, 12/1/2041 | 164,373 | 170,816 | ||||||
3.50%, 1/1/2042 | 138,848 | 141,246 | ||||||
4.00%, 1/1/2042 | 84,715 | 87,721 | ||||||
4.50%, 1/1/2042 | 48,056 | 50,922 | ||||||
6.00%, 1/1/2042 | 248,782 | 282,634 | ||||||
3.00%, 4/1/2042 | 148,300 | 147,367 | ||||||
3.50%, 5/1/2042 | 198,932 | 202,368 | ||||||
3.50%, 8/1/2042 | 146,872 | 149,405 | ||||||
3.50%, 1/1/2043 | 100,409 | 102,143 | ||||||
3.00%, 2/1/2043 | 196,602 | 195,364 | ||||||
3.50%, 3/1/2043 | 185,157 | 188,787 | ||||||
3.00%, 5/1/2043 | 13,137 | 13,066 | ||||||
3.50%, 5/1/2043 | 239,572 | 243,666 | ||||||
3.00%, 6/1/2043 | 110,470 | 109,446 | ||||||
3.50%, 7/1/2043 | 49,265 | 50,115 | ||||||
3.50%, 8/1/2043 | 95,385 | 96,947 | ||||||
4.00%, 8/1/2043 | 29,204 | 30,195 | ||||||
3.00%, 9/1/2043 | 152,474 | 151,514 | ||||||
4.00%, 9/1/2043 | 166,736 | 173,663 | ||||||
4.50%, 9/1/2043 | 55,721 | 58,652 | ||||||
4.00%, 11/1/2043 | 137,057 | 141,692 | ||||||
5.00%, 1/1/2044 | 254,254 | 272,435 | ||||||
5.00%, 3/1/2044 | 101,350 | 109,944 | ||||||
5.00%, 5/1/2044 | 119,860 | 128,757 | ||||||
5.50%, 5/1/2044 | 579,084 | 637,082 | ||||||
5.00%, 6/1/2044 | 33,011 | 35,433 | ||||||
4.50%, 10/1/2044 | 168,118 | 176,988 | ||||||
3.00%, 12/1/2044 | 409,244 | 406,415 | ||||||
3.00%, 2/1/2045 | 56,753 | 56,299 | ||||||
4.00%, 2/1/2045 | 89,425 | 92,320 | ||||||
3.00%, 4/1/2045 | 53,305 | 52,879 | ||||||
4.00%, 4/1/2045 | 54,581 | 56,854 | ||||||
4.00%, 11/1/2045 | 129,291 | 134,674 | ||||||
4.00%, 3/1/2046 | 61,636 | 63,841 | ||||||
4.50%, 3/1/2046 | 157,643 | 165,315 | ||||||
3.50%, 5/1/2046 | 56,569 | 57,243 | ||||||
4.00%, 5/1/2046 | 62,084 | 64,074 | ||||||
4.50%, 7/1/2046 | 78,238 | 81,887 | ||||||
2.50%, 9/1/2046 | 596,011 | 573,459 |
Investments | Principal Amount | Value | ||||||
4.50%, 2/1/2047 | $ | 264,542 | $ | 278,507 | ||||
5.50%, 1/1/2049 | 216,608 | 232,215 | ||||||
GNMA |
| |||||||
3.00%, 2/20/2027 | 761,977 | 770,225 | ||||||
2.50%, 4/20/2027 | 122,401 | 122,311 | ||||||
2.50%, 11/20/2027 | 134,259 | 134,160 | ||||||
2.50%, 1/20/2028 | 67,595 | 67,546 | ||||||
3.00%, 3/20/2028 | 134,450 | 135,913 | ||||||
3.00%, 7/20/2028 | 216,344 | 218,699 | ||||||
2.50%, 8/20/2028 | 287,959 | 287,748 | ||||||
2.50%, 11/20/2028 | 139,966 | 139,863 | ||||||
2.50%, 12/20/2028 | 28,003 | 27,983 | ||||||
2.50%, 3/20/2031 | 203,961 | 202,807 | ||||||
2.50%, 9/20/2031 | 299,086 | 297,394 | ||||||
2.50%, 10/20/2031 | 102,968 | 102,386 | ||||||
6.00%, 3/15/2033 | 227,224 | 256,195 | ||||||
5.50%, 6/15/2033 | 195,131 | 215,793 | ||||||
5.50%, 8/20/2033 | 44,824 | 49,126 | ||||||
6.00%, 10/20/2033 | 117,867 | 133,577 | ||||||
5.50%, 11/20/2033 | 62,835 | 68,845 | ||||||
6.00%, 12/15/2033 | 186,947 | 210,770 | ||||||
5.50%, 2/15/2034 | 100,766 | 109,820 | ||||||
5.50%, 3/20/2034 | 73,462 | 80,515 | ||||||
5.50%, 7/20/2034 | 48,365 | 53,002 | ||||||
6.00%, 8/15/2034 | 124,984 | 140,933 | ||||||
6.00%, 2/15/2035 | 108,791 | 120,708 | ||||||
5.50%, 3/15/2035 | 258,068 | 284,990 | ||||||
5.50%, 3/20/2036 | 152,095 | 166,620 | ||||||
5.50%, 9/20/2038 | 98,121 | 107,526 | ||||||
5.50%, 11/20/2038 | 218,474 | 239,442 | ||||||
6.00%, 12/20/2038 | 281,675 | 316,196 | ||||||
5.50%, 2/15/2039 | 87,685 | 96,877 | ||||||
5.50%, 2/20/2039 | 119,123 | 130,549 | ||||||
4.50%, 5/15/2039 | 124,734 | 131,663 | ||||||
5.00%, 5/15/2039 | 91,712 | 98,375 | ||||||
5.50%, 5/15/2039 | 54,574 | 60,302 | ||||||
5.00%, 9/15/2039 | 188,655 | 202,219 | ||||||
5.50%, 9/15/2039 | 24,923 | 27,565 | ||||||
4.00%, 9/20/2039 | 39,052 | 40,704 | ||||||
4.50%, 10/15/2039 | 224,127 | 236,944 | ||||||
4.50%, 12/15/2039 | 204,642 | 215,638 | ||||||
5.50%, 12/15/2039 | 69,635 | 77,003 | ||||||
5.00%, 1/20/2040 | 318,347 | 340,420 | ||||||
5.50%, 3/15/2040 | 147,119 | 162,579 | ||||||
4.50%, 4/15/2040 | 340,445 | 358,727 | ||||||
5.00%, 4/15/2040 | 210,802 | 225,980 | ||||||
4.50%, 6/15/2040 | 339,871 | 357,820 |
See Accompanying Notes to the Financial Statements.
266 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Disciplined Duration MBS Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
MORTGAGE-BACKED SECURITIES – (continued) | ||||||||
4.00%, 8/15/2040 | $ | 21,501 | $ | 22,404 | ||||
4.00%, 10/15/2040 | 13,873 | 14,392 | ||||||
3.50%, 11/15/2040 | 169,925 | 173,657 | ||||||
5.50%, 1/20/2041 | 39,741 | 43,567 | ||||||
4.00%, 3/15/2041 | 5,689 | 5,903 | ||||||
4.50%, 6/15/2041 | 187,087 | 197,004 | ||||||
4.00%, 8/15/2041 | 106,332 | 110,315 | ||||||
3.50%, 9/15/2041 | 115,449 | 117,994 | ||||||
5.50%, 9/20/2041 | 148,380 | 162,522 | ||||||
3.50%, 11/20/2041 | 94,296 | 96,328 | ||||||
3.50%, 1/15/2042 | 28,095 | 28,714 | ||||||
5.50%, 2/20/2042 | 34,417 | 37,567 | ||||||
4.50%, 3/15/2042 | 144,976 | 152,661 | ||||||
3.50%, 4/20/2042 | 149,701 | 152,795 | ||||||
3.00%, 5/15/2042 | 86,615 | 86,506 | ||||||
3.50%, 6/15/2042 | 189,594 | 193,761 | ||||||
3.50%, 8/20/2042 | 49,629 | 50,645 | ||||||
3.00%, 9/15/2042 | 211,412 | 211,636 | ||||||
3.00%, 12/20/2042 | 119,173 | 119,162 | ||||||
3.50%, 12/20/2042 | 18,655 | 19,002 | ||||||
3.00%, 2/20/2043 | 82,858 | 82,879 | ||||||
5.50%, 2/20/2043 | 21,749 | 23,834 | ||||||
2.50%, 3/20/2043 | 98,324 | 96,783 | ||||||
3.00%, 3/20/2043 | 104,714 | 104,741 | ||||||
3.00%, 4/15/2043 | 85,894 | 85,985 | ||||||
3.00%, 5/15/2043 | 233,575 | 233,966 | ||||||
2.50%, 5/20/2043 | 140,322 | 138,125 | ||||||
3.50%, 6/15/2043 | 271,119 | 277,071 | ||||||
3.00%, 9/20/2043 | 133,883 | 133,877 | ||||||
3.50%, 10/20/2043 | 265,772 | 271,216 | ||||||
5.00%, 12/20/2043 | 102,588 | 109,700 | ||||||
5.00%, 1/20/2044 | 7,305 | 7,810 | ||||||
5.50%, 4/20/2044 | 96,911 | 106,207 | ||||||
4.00%, 7/15/2044 | 94,319 | 97,906 | ||||||
3.50%, 8/20/2044 | 108,459 | 110,582 | ||||||
4.00%, 9/15/2044 | 45,726 | 47,167 | ||||||
3.50%, 10/15/2044 | 78,936 | 80,293 | ||||||
3.50%, 10/20/2044 | 18,179 | 18,529 | ||||||
2.50%, 11/20/2044 | 110,397 | 108,675 | ||||||
4.00%, 12/15/2044 | 70,911 | 73,146 | ||||||
3.00%, 12/20/2044 | 57,279 | 57,372 | ||||||
3.50%, 12/20/2044 | 55,956 | 57,021 | ||||||
3.50%, 1/15/2045 | 242,087 | 246,421 |
Investments | Principal Amount | Value | ||||||
3.00%, 1/20/2045 | $ | 112,809 | $ | 112,803 | ||||
3.50%, 2/20/2045 | 74,749 | 76,161 | ||||||
3.00%, 3/20/2045 | 88,265 | 88,261 | ||||||
3.50%, 5/15/2045 | 88,078 | 89,593 | ||||||
3.00%, 7/15/2045 | 344,766 | 344,334 | ||||||
3.00%, 12/20/2045 | 136,890 | 136,883 | ||||||
3.50%, 12/20/2045 | 149,726 | 152,559 | ||||||
3.00%, 1/20/2046 | 189,173 | 189,398 | ||||||
4.00%, 3/15/2046 | 173,997 | 179,527 | ||||||
4.00%, 3/20/2046 | 220,349 | 228,163 | ||||||
3.50%, 4/20/2046 | 133,710 | 136,237 | ||||||
4.00%, 5/20/2046 | 99,313 | 102,714 | ||||||
4.00%, 7/15/2046 | 115,856 | 120,178 | ||||||
3.00%, 9/20/2046 | 150,993 | 151,078 | ||||||
3.00%, 12/20/2046 | 156,447 | 156,439 | ||||||
4.50%, 11/15/2047 | 351,106 | 370,827 | ||||||
5.00%, 2/20/2048 | 360,284 | 377,604 | ||||||
5.00%, 4/20/2048 | 170,734 | 178,762 | ||||||
5.50%, 11/20/2048 | 544,671 | 575,553 | ||||||
Total Mortgage-Backed Securities (Cost $50,877,318) |
| 50,685,543 | ||||||
Total Investments – 99.2% (Cost $50,877,318) |
| 50,685,543 | ||||||
Other Assets Less Liabilities – 0.8% |
| 403,197 | ||||||
NET ASSETS – 100.0% |
| $ | 51,088,740 |
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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 287,786 | ||
Aggregate gross unrealized depreciation | (481,577 | ) | ||
Net unrealized depreciation | $ | (193,791 | ) | |
Federal income tax cost | $ | 50,879,334 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 267 |
Schedule of Investments
FlexShares® Credit-Scored US Corporate Bond Index Fund
April 30, 2019 (Unaudited)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – 98.8% | ||||||||
Aerospace & Defense – 1.6% | ||||||||
General Dynamics Corp. | ||||||||
3.75%, 5/15/2028 | $ | 100,000 | $ | 105,141 | ||||
Lockheed Martin Corp. | ||||||||
3.35%, 9/15/2021 | 155,000 | 157,520 | ||||||
3.55%, 1/15/2026 | 70,000 | 71,942 | ||||||
Northrop Grumman Corp. | ||||||||
2.93%, 1/15/2025 | 400,000 | 396,032 | ||||||
Rockwell Collins, Inc. | ||||||||
3.50%, 3/15/2027 | 200,000 | 198,367 | ||||||
United Technologies Corp. | ||||||||
3.10%, 6/1/2022 | 500,000 | 503,681 | ||||||
3.13%, 5/4/2027 | 200,000 | 196,960 | ||||||
1,629,643 | ||||||||
Air Freight & Logistics – 0.4% | ||||||||
FedEx Corp. | ||||||||
3.40%, 1/14/2022 | 200,000 | 202,830 | ||||||
3.20%, 2/1/2025 | 130,000 | 131,235 | ||||||
United Parcel Service, Inc. | ||||||||
2.45%, 10/1/2022 | 80,000 | 79,602 | ||||||
413,667 | ||||||||
Automobiles – 0.3% | ||||||||
General Motors Co. | ||||||||
4.88%, 10/2/2023 | 300,000 | 316,230 | ||||||
Banks – 29.5% | ||||||||
Australia & New Zealand Banking Group Ltd. | ||||||||
2.30%, 6/1/2021 | 250,000 | 247,906 | ||||||
Banco Santander SA | ||||||||
3.13%, 2/23/2023 | 400,000 | 399,304 | ||||||
Bank of America Corp. | ||||||||
2.50%, 10/21/2022 | 700,000 | 690,886 | ||||||
3.30%, 1/11/2023 | 400,000 | 405,311 | ||||||
3.12%, 1/20/2023(a) | 250,000 | 250,852 | ||||||
3.00%, 12/20/2023(a) | 500,000 | 498,206 | ||||||
4.20%, 8/26/2024 | 320,000 | 332,228 | ||||||
4.00%, 1/22/2025 | 255,000 | 261,441 | ||||||
3.88%, 8/1/2025 | 600,000 | 621,574 | ||||||
3.50%, 4/19/2026 | 200,000 | 201,986 |
Investments | Principal Amount | Value | ||||||
Banks – (continued) | ||||||||
3.82%, 1/20/2028(a) | $ | 500,000 | $ | 509,043 | ||||
3.71%, 4/24/2028(a) | 175,000 | 176,283 | ||||||
3.42%, 12/20/2028(a) | 200,000 | 196,563 | ||||||
3.97%, 3/5/2029(a) | 250,000 | 255,808 | ||||||
4.27%, 7/23/2029(a) | 600,000 | 627,585 | ||||||
Bank of Montreal | ||||||||
4.34%, 10/5/2028(a) | 300,000 | 307,957 | ||||||
Bank of Nova Scotia (The) | ||||||||
4.50%, 12/16/2025 | 100,000 | 104,969 | ||||||
Barclays plc | ||||||||
3.20%, 8/10/2021 | 200,000 | 199,946 | ||||||
3.65%, 3/16/2025 | 200,000 | 197,017 | ||||||
4.38%, 1/12/2026 | 200,000 | 203,706 | ||||||
4.84%, 5/9/2028 | 200,000 | 200,713 | ||||||
BB&T Corp. | ||||||||
2.85%, 10/26/2024 | 150,000 | 149,887 | ||||||
Citibank NA | ||||||||
3.40%, 7/23/2021 | 250,000 | 253,732 | ||||||
Citigroup, Inc. | ||||||||
2.70%, 3/30/2021 | 425,000 | 424,562 | ||||||
2.90%, 12/8/2021 | 500,000 | 500,524 | ||||||
4.50%, 1/14/2022 | 150,000 | 156,211 | ||||||
4.05%, 7/30/2022 | 100,000 | 103,286 | ||||||
3.50%, 5/15/2023 | 250,000 | 252,995 | ||||||
3.30%, 4/27/2025 | 200,000 | 201,044 | ||||||
4.40%, 6/10/2025 | 325,000 | 339,237 | ||||||
3.40%, 5/1/2026 | 200,000 | 200,075 | ||||||
3.20%, 10/21/2026 | 250,000 | 245,035 | ||||||
4.45%, 9/29/2027 | 200,000 | 207,738 | ||||||
3.89%, 1/10/2028(a) | 200,000 | 204,010 | ||||||
3.67%, 7/24/2028(a) | 155,000 | 155,551 | ||||||
4.13%, 7/25/2028 | 200,000 | 203,295 | ||||||
3.52%, 10/27/2028(a) | 250,000 | 246,963 | ||||||
4.07%, 4/23/2029(a) | 150,000 | 154,081 | ||||||
Citizens Bank NA | ||||||||
2.55%, 5/13/2021 | 250,000 | 248,922 | ||||||
Citizens Financial Group, Inc. | ||||||||
4.30%, 12/3/2025 | 60,000 | 61,913 | ||||||
Credit Suisse Group Funding Guernsey Ltd. | ||||||||
3.45%, 4/16/2021 | 250,000 | 252,713 | ||||||
3.80%, 9/15/2022 | 250,000 | 255,339 | ||||||
3.75%, 3/26/2025 | 250,000 | 253,171 |
See Accompanying Notes to the Financial Statements.
268 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Banks – (continued) | ||||||||
Discover Bank | ||||||||
3.20%, 8/9/2021 | $ | 250,000 | $ | 251,462 | ||||
Fifth Third Bancorp | ||||||||
3.50%, 3/15/2022 | 295,000 | 300,779 | ||||||
Fifth Third Bank | ||||||||
3.85%, 3/15/2026 | 200,000 | 205,092 | ||||||
HSBC Holdings plc | ||||||||
2.95%, 5/25/2021 | 350,000 | 350,833 | ||||||
4.00%, 3/30/2022 | 510,000 | 525,916 | ||||||
4.25%, 8/18/2025 | 300,000 | 308,346 | ||||||
3.90%, 5/25/2026 | 200,000 | 204,098 | ||||||
4.29%, 9/12/2026(a) | 250,000 | 260,613 | ||||||
4.04%, 3/13/2028(a) | 200,000 | 203,868 | ||||||
Huntington Bancshares, Inc. | ||||||||
4.00%, 5/15/2025 | 200,000 | 207,967 | ||||||
ING Groep NV | ||||||||
4.55%, 10/2/2028 | 200,000 | 210,562 | ||||||
JPMorgan Chase & Co. | ||||||||
3.38%, 5/1/2023 | 520,000 | 527,408 | ||||||
3.56%, 4/23/2024(a) | 100,000 | 101,688 | ||||||
3.13%, 1/23/2025 | 230,000 | 230,316 | ||||||
3.90%, 7/15/2025 | 250,000 | 259,441 | ||||||
3.30%, 4/1/2026 | 470,000 | 470,315 | ||||||
3.20%, 6/15/2026 | 700,000 | 696,139 | ||||||
2.95%, 10/1/2026 | 450,000 | 440,790 | ||||||
4.13%, 12/15/2026 | 125,000 | 129,527 | ||||||
4.25%, 10/1/2027 | 125,000 | 130,408 | ||||||
3.78%, 2/1/2028(a) | 875,000 | 890,429 | ||||||
4.20%, 7/23/2029(a) | 350,000 | 365,393 | ||||||
4.45%, 12/5/2029(a) | 350,000 | 372,667 | ||||||
Lloyds Banking Group plc |
| |||||||
3.10%, 7/6/2021 | 200,000 | 200,586 | ||||||
4.38%, 3/22/2028 | 200,000 | 207,144 | ||||||
3.57%, 11/7/2028(a) | 200,000 | 195,312 | ||||||
Mitsubishi UFJ Financial Group, Inc. |
| |||||||
2.19%, 9/13/2021 | 500,000 | 492,385 | ||||||
2.67%, 7/25/2022 | 450,000 | 446,691 | ||||||
3.85%, 3/1/2026 | 200,000 | 207,369 | ||||||
3.68%, 2/22/2027 | 350,000 | 359,240 | ||||||
3.29%, 7/25/2027 | 150,000 | 149,909 | ||||||
3.74%, 3/7/2029 | 200,000 | 205,247 | ||||||
Mizuho Financial Group, Inc. |
| |||||||
2.95%, 2/28/2022 | 400,000 | 400,468 | ||||||
4.02%, 3/5/2028 | 400,000 | 421,021 |
Investments | Principal Amount | Value | ||||||
Banks – (continued) | ||||||||
National Australia Bank Ltd. |
| |||||||
1.88%, 7/12/2021 | $ | 250,000 | $ | 245,525 | ||||
2.80%, 1/10/2022 | 250,000 | 250,151 | ||||||
PNC Bank NA |
| |||||||
3.50%, 6/8/2023 | 250,000 | 256,663 | ||||||
PNC Financial Services Group, Inc. (The) |
| |||||||
3.30%, 3/8/2022 | 380,000 | 386,552 | ||||||
3.90%, 4/29/2024 | 50,000 | 51,994 | ||||||
3.15%, 5/19/2027 | 250,000 | 250,022 | ||||||
Royal Bank of Canada |
| |||||||
2.75%, 2/1/2022 | 100,000 | 100,281 | ||||||
4.65%, 1/27/2026 | 200,000 | 213,193 | ||||||
Santander Holdings USA, Inc. |
| |||||||
4.50%, 7/17/2025 | 200,000 | 208,672 | ||||||
Santander UK Group Holdings plc |
| |||||||
3.82%, 11/3/2028(a) | 200,000 | 196,556 | ||||||
Sumitomo Mitsui Financial Group, Inc. |
| |||||||
2.06%, 7/14/2021 | 482,000 | 474,357 | ||||||
2.78%, 7/12/2022 | 400,000 | 399,258 | ||||||
3.78%, 3/9/2026 | 250,000 | 257,817 | ||||||
2.63%, 7/14/2026 | 600,000 | 575,150 | ||||||
3.36%, 7/12/2027 | 350,000 | 351,655 | ||||||
SunTrust Bank |
| |||||||
3.53%, 10/26/2021(a) | 100,000 | 101,056 | ||||||
3.30%, 5/15/2026 | 200,000 | 198,092 | ||||||
US Bancorp |
| |||||||
Series X, 3.15%, 4/27/2027 | 150,000 | 150,634 | ||||||
Wells Fargo & Co. |
| |||||||
4.60%, 4/1/2021 | 100,000 | 103,357 | ||||||
3.50%, 3/8/2022 | 400,000 | 406,796 | ||||||
2.63%, 7/22/2022 | 300,000 | 297,561 | ||||||
3.07%, 1/24/2023 | 250,000 | 250,595 | ||||||
4.48%, 1/16/2024 | 225,000 | 236,914 | ||||||
3.55%, 9/29/2025 | 200,000 | 203,955 | ||||||
4.10%, 6/3/2026 | 500,000 | 512,327 | ||||||
3.58%, 5/22/2028(a) | 250,000 | 251,196 | ||||||
Westpac Banking Corp. |
| |||||||
2.75%, 1/11/2023 | 200,000 | 198,949 | ||||||
2.85%, 5/13/2026 | 150,000 | 146,044 | ||||||
3.40%, 1/25/2028 | 400,000 | 405,655 | ||||||
4.32%, 11/23/2031(a) | 100,000 | 100,434 | ||||||
30,670,408 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 269 |
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Beverages – 1.2% | ||||||||
Anheuser-Busch InBev Finance, Inc. |
| |||||||
3.30%, 2/1/2023 | $ | 180,000 | $ | 182,534 | ||||
Constellation Brands, Inc. |
| |||||||
4.25%, 5/1/2023 | 150,000 | 156,889 | ||||||
4.40%, 11/15/2025 | 300,000 | 317,281 | ||||||
Diageo Capital plc |
| |||||||
2.63%, 4/29/2023 | 100,000 | 99,853 | ||||||
PepsiCo, Inc. |
| |||||||
3.10%, 7/17/2022 | 200,000 | 203,404 | ||||||
2.38%, 10/6/2026 | 300,000 | 288,186 | ||||||
1,248,147 | ||||||||
Biotechnology – 3.3% | ||||||||
AbbVie, Inc. |
| |||||||
2.90%, 11/6/2022 | 250,000 | 249,435 | ||||||
3.20%, 11/6/2022 | 240,000 | 242,257 | ||||||
3.60%, 5/14/2025 | 150,000 | 151,009 | ||||||
3.20%, 5/14/2026 | 100,000 | 97,109 | ||||||
4.25%, 11/14/2028 | 400,000 | 409,863 | ||||||
Amgen, Inc. |
| |||||||
3.88%, 11/15/2021 | 250,000 | 256,076 | ||||||
2.70%, 5/1/2022 | 370,000 | 368,374 | ||||||
3.63%, 5/22/2024 | 100,000 | 102,784 | ||||||
Celgene Corp. |
| |||||||
2.25%, 8/15/2021 | 150,000 | 147,862 | ||||||
3.25%, 2/20/2023 | 200,000 | 201,366 | ||||||
3.63%, 5/15/2024 | 300,000 | 305,096 | ||||||
3.90%, 2/20/2028 | 200,000 | 204,599 | ||||||
Gilead Sciences, Inc. |
| |||||||
3.70%, 4/1/2024 | 350,000 | 361,460 | ||||||
3.50%, 2/1/2025 | 225,000 | 229,428 | ||||||
2.95%, 3/1/2027 | 100,000 | 97,237 | ||||||
3,423,955 | ||||||||
Capital Markets – 11.3% | ||||||||
Bank of New York Mellon Corp. (The) |
| |||||||
2.50%, 4/15/2021 | 300,000 | 299,304 | ||||||
2.05%, 5/3/2021 | 300,000 | 296,596 | ||||||
Series 0012, 3.65%, 2/4/2024 | 300,000 | 310,097 | ||||||
3.40%, 1/29/2028 | 150,000 | 152,756 | ||||||
BlackRock, Inc. |
| |||||||
3.20%, 3/15/2027 | 100,000 | 100,884 |
Investments | Principal Amount | Value | ||||||
Capital Markets – (continued) | ||||||||
Charles Schwab Corp. (The) |
| |||||||
3.20%, 1/25/2028 | $ | 100,000 | $ | 99,656 | ||||
Deutsche Bank AG |
| |||||||
3.70%, 5/30/2024 | 295,000 | 285,627 | ||||||
Goldman Sachs Group, Inc. (The) |
| |||||||
5.25%, 7/27/2021 | 200,000 | 210,353 | ||||||
5.75%, 1/24/2022 | 1,135,000 | 1,217,838 | ||||||
3.00%, 4/26/2022 | 400,000 | 400,394 | ||||||
3.63%, 1/22/2023 | 300,000 | 306,176 | ||||||
4.00%, 3/3/2024 | 210,000 | 217,234 | ||||||
3.85%, 7/8/2024 | 700,000 | 717,819 | ||||||
3.50%, 1/23/2025 | 255,000 | 256,487 | ||||||
3.27%, 9/29/2025(a) | 500,000 | 494,451 | ||||||
3.85%, 1/26/2027 | 150,000 | 151,234 | ||||||
3.69%, 6/5/2028(a) | 250,000 | 247,849 | ||||||
3.81%, 4/23/2029(a) | 500,000 | 496,947 | ||||||
4.22%, 5/1/2029(a) | 400,000 | 408,956 | ||||||
Morgan Stanley |
| |||||||
2.63%, 11/17/2021 | 400,000 | 398,553 | ||||||
2.75%, 5/19/2022 | 1,600,000 | 1,592,556 | ||||||
3.75%, 2/25/2023 | 200,000 | 205,505 | ||||||
4.00%, 7/23/2025 | 200,000 | 208,103 | ||||||
5.00%, 11/24/2025 | 700,000 | 757,226 | ||||||
3.88%, 1/27/2026 | 200,000 | 205,138 | ||||||
4.35%, 9/8/2026 | 400,000 | 415,477 | ||||||
3.77%, 1/24/2029(a) | 1,000,000 | 1,009,901 | ||||||
State Street Corp. |
| |||||||
3.10%, 5/15/2023 | 200,000 | 201,970 | ||||||
3.55%, 8/18/2025 | 100,000 | 103,615 | ||||||
11,768,702 | ||||||||
Chemicals – 0.8% | ||||||||
Dow Chemical Co. (The) |
| |||||||
4.13%, 11/15/2021 | 100,000 | 102,830 | ||||||
Ecolab, Inc. |
| |||||||
2.70%, 11/1/2026 | 200,000 | 194,774 | ||||||
LYB International Finance BV |
| |||||||
4.00%, 7/15/2023 | 243,000 | 250,927 | ||||||
LYB International Finance II BV |
| |||||||
3.50%, 3/2/2027 | 187,000 | 182,177 | ||||||
Sherwin-Williams Co. (The) |
| |||||||
2.75%, 6/1/2022 | 150,000 | 149,234 | ||||||
879,942 |
See Accompanying Notes to the Financial Statements.
270 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Commercial Services & Supplies – 0.4% | ||||||||
Republic Services, Inc. |
| |||||||
3.55%, 6/1/2022 | $ | 200,000 | $ | 204,174 | ||||
3.95%, 5/15/2028 | 100,000 | 104,492 | ||||||
Waste Management, Inc. |
| |||||||
3.13%, 3/1/2025 | 105,000 | 106,069 | ||||||
414,735 | ||||||||
Communications Equipment – 0.4% | ||||||||
Cisco Systems, Inc. |
| |||||||
1.85%, 9/20/2021 | 200,000 | 196,907 | ||||||
2.95%, 2/28/2026 | 100,000 | 99,784 | ||||||
Motorola Solutions, Inc. |
| |||||||
3.75%, 5/15/2022 | 100,000 | 102,470 | ||||||
399,161 | ||||||||
Consumer Finance – 4.9% | ||||||||
AerCap Ireland Capital DAC |
| |||||||
5.00%, 10/1/2021 | 150,000 | 156,044 | ||||||
3.95%, 2/1/2022 | 200,000 | 202,961 | ||||||
3.88%, 1/23/2028 | 200,000 | 192,151 | ||||||
American Express Co. |
| |||||||
2.50%, 8/1/2022 | 200,000 | 197,838 | ||||||
3.00%, 10/30/2024 | 450,000 | 450,058 | ||||||
3.63%, 12/5/2024 | 390,000 | 402,348 | ||||||
American Honda Finance Corp. |
| |||||||
1.70%, 9/9/2021 | 155,000 | 152,045 | ||||||
Capital One Financial Corp. |
| |||||||
3.50%, 6/15/2023 | 200,000 | 203,944 | ||||||
3.20%, 2/5/2025 | 750,000 | 742,357 | ||||||
4.20%, 10/29/2025 | 300,000 | 309,099 | ||||||
3.75%, 7/28/2026 | 150,000 | 147,784 | ||||||
3.75%, 3/9/2027 | 100,000 | 99,243 | ||||||
Caterpillar Financial Services Corp. |
| |||||||
3.45%, 5/15/2023 | 200,000 | 205,601 | ||||||
Discover Financial Services |
| |||||||
4.10%, 2/9/2027 | 150,000 | 150,584 | ||||||
General Motors Financial Co., Inc. |
| |||||||
3.20%, 7/6/2021 | 350,000 | 349,904 | ||||||
4.38%, 9/25/2021 | 300,000 | 307,496 | ||||||
4.35%, 1/17/2027 | 450,000 | 450,202 | ||||||
Synchrony Financial |
| |||||||
4.25%, 8/15/2024 | 150,000 | 152,019 |
Investments | Principal Amount | Value | ||||||
Consumer Finance – (continued) | ||||||||
Toyota Motor Credit Corp. |
| |||||||
1.90%, 4/8/2021 | $ | 200,000 | $ | 197,498 | ||||
5,069,176 | ||||||||
Containers & Packaging – 0.2% | ||||||||
International Paper Co. |
| |||||||
3.65%, 6/15/2024 | 200,000 | 204,547 | ||||||
Diversified Financial Services – 1.4% | ||||||||
Berkshire Hathaway, Inc. |
| |||||||
3.13%, 3/15/2026 | 130,000 | 130,822 | ||||||
Jefferies Financial Group, Inc. |
| |||||||
5.50%, 10/18/2023 | 200,000 | 210,514 | ||||||
Shell International Finance BV |
| |||||||
3.25%, 5/11/2025 | 200,000 | 203,947 | ||||||
2.88%, 5/10/2026 | 175,000 | 173,706 | ||||||
3.88%, 11/13/2028 | 200,000 | 211,445 | ||||||
Synchrony Bank |
| |||||||
3.65%, 5/24/2021 | 250,000 | 253,168 | ||||||
3.00%, 6/15/2022 | 250,000 | 248,323 | ||||||
1,431,925 | ||||||||
Diversified Telecommunication Services – 1.7% | ||||||||
AT&T, Inc. |
| |||||||
3.00%, 2/15/2022 | 200,000 | 201,322 | ||||||
3.20%, 3/1/2022 | 100,000 | 101,044 | ||||||
3.40%, 5/15/2025 | 150,000 | 150,803 | ||||||
Verizon Communications, Inc. |
| |||||||
5.15%, 9/15/2023 | 550,000 | 602,229 | ||||||
3.50%, 11/1/2024 | 200,000 | 204,958 | ||||||
2.63%, 8/15/2026 | 100,000 | 96,059 | ||||||
4.13%, 3/16/2027 | 400,000 | 422,211 | ||||||
1,778,626 | ||||||||
Electric Utilities – 2.0% | ||||||||
Duke Energy Corp. |
| |||||||
1.80%, 9/1/2021 | 300,000 | 293,454 | ||||||
3.15%, 8/15/2027 | 200,000 | 196,633 | ||||||
Eversource Energy |
| |||||||
Series K, 2.75%, 3/15/2022 | 150,000 | 150,152 | ||||||
Exelon Corp. |
| |||||||
3.50%, 6/1/2022(b) | 400,000 | 405,789 | ||||||
Southern Co. (The) |
| |||||||
2.95%, 7/1/2023 | 300,000 | 299,807 | ||||||
3.25%, 7/1/2026 | 100,000 | 98,727 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 271 |
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
Southwestern Electric Power Co. |
| |||||||
Series M, 4.10%, 9/15/2028 | $ | 200,000 | $ | 209,781 | ||||
Virginia Electric & Power Co. |
| |||||||
Series A, 3.15%, 1/15/2026 | 50,000 | 49,961 | ||||||
Series A, 3.50%, 3/15/2027 | 100,000 | 102,280 | ||||||
Series A, 3.80%, 4/1/2028 | 200,000 | 207,863 | ||||||
Xcel Energy, Inc. |
| |||||||
4.00%, 6/15/2028 | 100,000 | 104,373 | ||||||
2,118,820 | ||||||||
Energy Equipment & Services – 0.3% | ||||||||
Halliburton Co. |
| |||||||
3.50%, 8/1/2023 | 200,000 | 203,682 | ||||||
3.80%, 11/15/2025 | 75,000 | 76,785 | ||||||
280,467 | ||||||||
Entertainment – 0.4% | ||||||||
TWDC Enterprises 18 Corp. |
| |||||||
3.00%, 2/13/2026 | 160,000 | 160,391 | ||||||
1.85%, 7/30/2026 | 100,000 | 92,678 | ||||||
Walt Disney Co. (The) |
| |||||||
3.70%, 10/15/2025(c) | 100,000 | 104,382 | ||||||
Warner Media LLC |
| |||||||
3.40%, 6/15/2022 | 100,000 | 101,617 | ||||||
459,068 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.9% | ||||||||
American Tower Corp. |
| |||||||
3.45%, 9/15/2021 | 145,000 | 147,156 | ||||||
3.50%, 1/31/2023 | 250,000 | 254,000 | ||||||
3.38%, 10/15/2026 | 300,000 | 296,179 | ||||||
3.60%, 1/15/2028 | 50,000 | 49,349 | ||||||
Boston Properties LP |
| |||||||
3.85%, 2/1/2023 | 250,000 | 258,013 | ||||||
3.65%, 2/1/2026 | 255,000 | 257,652 | ||||||
Brixmor Operating Partnership LP |
| |||||||
3.88%, 8/15/2022 | 200,000 | 202,727 | ||||||
Crown Castle International Corp. |
| |||||||
4.88%, 4/15/2022 | 250,000 | 263,655 | ||||||
5.25%, 1/15/2023 | 200,000 | 214,849 | ||||||
Digital Realty Trust LP |
| |||||||
3.95%, 7/1/2022 | 74,000 | 76,108 |
Investments | Principal Amount | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
ERP Operating LP |
| |||||||
4.63%, 12/15/2021 | $ | 200,000 | $ | 208,571 | ||||
GLP Capital LP |
| |||||||
5.38%, 4/15/2026 | 200,000 | 211,712 | ||||||
HCP, Inc. |
| |||||||
4.25%, 11/15/2023 | 350,000 | 365,409 | ||||||
Omega Healthcare Investors, Inc. |
| |||||||
4.38%, 8/1/2023 | 250,000 | 254,911 | ||||||
Realty Income Corp. |
| |||||||
3.65%, 1/15/2028 | 250,000 | 255,620 | ||||||
Simon Property Group LP |
| |||||||
3.75%, 2/1/2024 | 120,000 | 124,429 | ||||||
3.38%, 10/1/2024 | 200,000 | 204,187 | ||||||
Ventas Realty LP |
| |||||||
3.50%, 2/1/2025 | 50,000 | 50,328 | ||||||
4.00%, 3/1/2028 | 150,000 | 152,102 | ||||||
Welltower, Inc. |
| |||||||
3.75%, 3/15/2023 | 30,000 | 30,804 | ||||||
4.25%, 4/1/2026 | 150,000 | 155,313 | ||||||
4,033,074 | ||||||||
Food & Staples Retailing – 1.2% | ||||||||
Costco Wholesale Corp. |
| |||||||
3.00%, 5/18/2027 | 75,000 | 75,384 | ||||||
Kroger Co. (The) |
| |||||||
3.85%, 8/1/2023 | 100,000 | 102,922 | ||||||
Sysco Corp. |
| |||||||
3.75%, 10/1/2025 | 200,000 | 206,573 | ||||||
Walgreens Boots Alliance, Inc. |
| |||||||
3.30%, 11/18/2021 | 305,000 | 307,691 | ||||||
Walmart, Inc. |
| |||||||
3.70%, 6/26/2028 | 550,000 | 576,599 | ||||||
1,269,169 | ||||||||
Food Products – 0.8% | ||||||||
General Mills, Inc. |
| |||||||
4.00%, 4/17/2025 | 250,000 | 260,329 | ||||||
Tyson Foods, Inc. |
| |||||||
4.50%, 6/15/2022 | 124,000 | 129,580 | ||||||
3.55%, 6/2/2027 | 100,000 | 99,277 | ||||||
Unilever Capital Corp. |
| |||||||
2.90%, 5/5/2027 | 200,000 | 196,869 | ||||||
3.50%, 3/22/2028 | 100,000 | 102,442 | ||||||
788,497 |
See Accompanying Notes to the Financial Statements.
272 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Health Care Equipment & Supplies – 0.8% | ||||||||
Abbott Laboratories |
| |||||||
2.90%, 11/30/2021 | $ | 200,000 | $ | 201,025 | ||||
Becton Dickinson and Co. |
| |||||||
3.73%, 12/15/2024 | 100,000 | 101,678 | ||||||
Medtronic, Inc. |
| |||||||
3.50%, 3/15/2025 | 350,000 | 360,953 | ||||||
Stryker Corp. |
| |||||||
3.65%, 3/7/2028 | 150,000 | 153,053 | ||||||
816,709 | ||||||||
Health Care Providers & Services – 1.7% | ||||||||
Anthem, Inc. |
| |||||||
3.30%, 1/15/2023 | 100,000 | 100,931 | ||||||
3.50%, 8/15/2024 | 100,000 | 101,288 | ||||||
CVS Health Corp. |
| |||||||
3.50%, 7/20/2022 | 200,000 | 202,539 | ||||||
Express Scripts Holding Co. |
| |||||||
3.90%, 2/15/2022 | 350,000 | 358,717 | ||||||
Laboratory Corp. of America Holdings |
| |||||||
3.20%, 2/1/2022 | 100,000 | 100,566 | ||||||
3.25%, 9/1/2024 | 200,000 | 199,321 | ||||||
UnitedHealth Group, Inc. |
| |||||||
2.38%, 10/15/2022 | 250,000 | 246,855 | ||||||
3.75%, 7/15/2025 | 75,000 | 78,131 | ||||||
3.10%, 3/15/2026 | 350,000 | 350,879 | ||||||
3.88%, 12/15/2028 | 55,000 | 57,498 | ||||||
1,796,725 | ||||||||
Hotels, Restaurants & Leisure – 1.3% | ||||||||
Marriott International, Inc. |
| |||||||
2.30%, 1/15/2022 | 80,000 | 78,734 | ||||||
McDonald’s Corp. |
| |||||||
2.63%, 1/15/2022 | 150,000 | 149,872 | ||||||
3.38%, 5/26/2025 | 125,000 | 127,339 | ||||||
3.80%, 4/1/2028 | 150,000 | 154,849 | ||||||
Sands China Ltd. |
| |||||||
5.13%, 8/8/2025 | 400,000 | 422,547 | ||||||
Starbucks Corp. |
| |||||||
3.10%, 3/1/2023 | 200,000 | 202,142 | ||||||
3.50%, 3/1/2028 | 200,000 | 202,251 | ||||||
1,337,734 |
Investments | Principal Amount | Value | ||||||
Household Products – 0.2% | ||||||||
Procter & Gamble Co. (The) |
| |||||||
3.10%, 8/15/2023 | $ | 150,000 | $ | 153,084 | ||||
Industrial Conglomerates – 0.4% | ||||||||
3M Co. |
| |||||||
2.25%, 9/19/2026 | 100,000 | 95,847 | ||||||
Honeywell International, Inc. |
| |||||||
1.85%, 11/1/2021 | 80,000 | 78,840 | ||||||
Roper Technologies, Inc. |
| |||||||
3.80%, 12/15/2026 | 200,000 | 202,125 | ||||||
376,812 | ||||||||
Insurance – 1.3% | ||||||||
American International Group, Inc. |
| |||||||
3.90%, 4/1/2026 | 100,000 | 101,251 | ||||||
4.25%, 3/15/2029 | 250,000 | 255,027 | ||||||
Chubb INA Holdings, Inc. |
| |||||||
3.15%, 3/15/2025 | 270,000 | 273,474 | ||||||
Marsh & McLennan Cos., Inc. |
| |||||||
2.75%, 1/30/2022 | 200,000 | 199,985 | ||||||
3.50%, 3/10/2025 | 75,000 | 76,804 | ||||||
4.38%, 3/15/2029 | 200,000 | 213,754 | ||||||
MetLife, Inc. |
| |||||||
3.00%, 3/1/2025 | 100,000 | 101,103 | ||||||
Prudential Financial, Inc. |
| |||||||
5.20%, 3/15/2044(a) | 10,000 | 10,189 | ||||||
5.70%, 9/15/2048(a) | 150,000 | 155,638 | ||||||
1,387,225 | ||||||||
Interactive Media & Services – 0.1% | ||||||||
Alphabet, Inc. |
| |||||||
3.38%, 2/25/2024 | 100,000 | 103,486 | ||||||
Internet & Direct Marketing Retail – 0.9% | ||||||||
Alibaba Group Holding Ltd. |
| |||||||
3.13%, 11/28/2021 | 200,000 | 201,329 | ||||||
3.60%, 11/28/2024 | 300,000 | 307,188 | ||||||
Amazon.com, Inc. |
| |||||||
3.15%, 8/22/2027 | 300,000 | 302,282 | ||||||
eBay, Inc. |
| |||||||
3.45%, 8/1/2024 | 120,000 | 121,346 | ||||||
932,145 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 273 |
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
IT Services – 1.9% | ||||||||
Fidelity National Information Services, Inc. |
| |||||||
3.50%, 4/15/2023 | $ | 100,000 | $ | 101,708 | ||||
3.00%, 8/15/2026 | 100,000 | 96,967 | ||||||
Fiserv, Inc. |
| |||||||
3.80%, 10/1/2023 | 250,000 | 258,294 | ||||||
International Business Machines Corp. |
| |||||||
3.45%, 2/19/2026 | 450,000 | 458,345 | ||||||
3.30%, 1/27/2027 | 150,000 | 151,740 | ||||||
Total System Services, Inc. |
| |||||||
4.00%, 6/1/2023 | 250,000 | 257,295 | ||||||
Visa, Inc. |
| |||||||
2.80%, 12/14/2022 | 350,000 | 352,621 | ||||||
3.15%, 12/14/2025 | 200,000 | 203,109 | ||||||
2.75%, 9/15/2027 | 100,000 | 98,741 | ||||||
1,978,820 | ||||||||
Life Sciences Tools & Services – 0.3% | ||||||||
Thermo Fisher Scientific, Inc. |
| |||||||
3.00%, 4/15/2023 | 300,000 | 300,691 | ||||||
Media – 2.0% | ||||||||
CBS Corp. |
| |||||||
3.70%, 8/15/2024 | 300,000 | 306,605 | ||||||
2.90%, 1/15/2027 | 100,000 | 93,762 | ||||||
Charter Communications Operating LLC |
| |||||||
4.46%, 7/23/2022 | 250,000 | 259,461 | ||||||
Comcast Corp. |
| |||||||
3.13%, 7/15/2022 | 400,000 | 405,749 | ||||||
3.60%, 3/1/2024 | 300,000 | 309,195 | ||||||
3.95%, 10/15/2025 | 600,000 | 629,060 | ||||||
Omnicom Group, Inc. |
| |||||||
3.60%, 4/15/2026 | 100,000 | 99,880 | ||||||
2,103,712 | ||||||||
Multiline Retail – 0.3% | ||||||||
Dollar Tree, Inc. |
| |||||||
3.70%, 5/15/2023 | 300,000 | 305,143 | ||||||
Multi-Utilities – 0.9% | ||||||||
Berkshire Hathaway Energy Co. |
| |||||||
3.25%, 4/15/2028 | 100,000 | 99,565 | ||||||
CenterPoint Energy, Inc. |
| |||||||
3.85%, 2/1/2024 | 250,000 | 256,458 |
Investments | Principal Amount | Value | ||||||
Multi-Utilities – (continued) | ||||||||
DTE Energy Co. |
| |||||||
3.80%, 3/15/2027 | $ | 100,000 | $ | 101,231 | ||||
Public Service Enterprise Group, Inc. |
| |||||||
2.65%, 11/15/2022 | 200,000 | 198,281 | ||||||
Sempra Energy |
| |||||||
3.40%, 2/1/2028 | 300,000 | 291,508 | ||||||
947,043 | ||||||||
Oil, Gas & Consumable Fuels – 8.3% | ||||||||
BP Capital Markets America, Inc. |
| |||||||
3.25%, 5/6/2022 | 339,000 | 344,418 | ||||||
3.22%, 4/14/2024 | 300,000 | 302,935 | ||||||
3.12%, 5/4/2026 | 300,000 | 298,869 | ||||||
3.02%, 1/16/2027 | 150,000 | 147,112 | ||||||
BP Capital Markets plc |
| |||||||
3.28%, 9/19/2027 | 350,000 | 349,559 | ||||||
Canadian Natural Resources Ltd. |
| |||||||
3.80%, 4/15/2024 | 250,000 | 254,707 | ||||||
Chevron Corp. |
| |||||||
2.95%, 5/16/2026 | 300,000 | 299,842 | ||||||
ConocoPhillips Co. |
| |||||||
4.95%, 3/15/2026 | 300,000 | 333,188 | ||||||
Continental Resources, Inc. |
| |||||||
4.50%, 4/15/2023 | 400,000 | 413,726 | ||||||
Energy Transfer Operating LP |
| |||||||
4.65%, 6/1/2021 | 200,000 | 206,932 | ||||||
4.50%, 4/15/2024 | 300,000 | 313,478 | ||||||
Enterprise Products Operating LLC |
| |||||||
2.85%, 4/15/2021 | 100,000 | 100,048 | ||||||
3.35%, 3/15/2023 | 430,000 | 435,768 | ||||||
3.75%, 2/15/2025 | 200,000 | 206,688 | ||||||
4.15%, 10/16/2028 | 100,000 | 105,369 | ||||||
EOG Resources, Inc. |
| |||||||
4.15%, 1/15/2026 | 150,000 | 158,782 | ||||||
Exxon Mobil Corp. |
| |||||||
2.73%, 3/1/2023 | 160,000 | 160,558 | ||||||
Kinder Morgan Energy Partners LP |
| |||||||
4.25%, 9/1/2024 | 500,000 | 521,696 | ||||||
Kinder Morgan, Inc. |
| |||||||
4.30%, 6/1/2025 | 100,000 | 104,921 | ||||||
MPLX LP |
| |||||||
3.38%, 3/15/2023 | 200,000 | 201,340 | ||||||
4.13%, 3/1/2027 | 350,000 | 354,104 |
See Accompanying Notes to the Financial Statements.
274 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Occidental Petroleum Corp. |
| |||||||
2.70%, 2/15/2023 | $ | 80,000 | $ | 78,901 | ||||
3.40%, 4/15/2026 | 200,000 | 200,068 | ||||||
ONEOK Partners LP |
| |||||||
4.90%, 3/15/2025 | 150,000 | 159,948 | ||||||
Plains All American Pipeline LP |
| |||||||
3.65%, 6/1/2022 | 250,000 | 252,489 | ||||||
4.65%, 10/15/2025 | 50,000 | 52,281 | ||||||
Spectra Energy Partners LP |
| |||||||
4.75%, 3/15/2024 | 600,000 | 641,960 | ||||||
Total Capital International SA |
| |||||||
3.75%, 4/10/2024 | 180,000 | 187,502 | ||||||
3.46%, 2/19/2029 | 200,000 | 204,508 | ||||||
TransCanada PipeLines Ltd. |
| |||||||
2.50%, 8/1/2022 | 600,000 | 592,245 | ||||||
Transcontinental Gas Pipe Line Co. LLC |
| |||||||
7.85%, 2/1/2026 | 150,000 | 187,749 | ||||||
Valero Energy Corp. |
| |||||||
3.65%, 3/15/2025 | 200,000 | 203,309 | ||||||
Williams Cos., Inc. (The) |
| |||||||
3.75%, 6/15/2027 | 250,000 | 250,935 | ||||||
8,625,935 | ||||||||
Pharmaceuticals – 3.2% | ||||||||
AstraZeneca plc |
| |||||||
2.38%, 6/12/2022 | 400,000 | 394,638 | ||||||
3.38%, 11/16/2025 | 50,000 | 50,610 | ||||||
GlaxoSmithKline Capital, Inc. |
| |||||||
3.38%, 5/15/2023 | 300,000 | 306,844 | ||||||
3.88%, 5/15/2028 | 200,000 | 209,581 | ||||||
Johnson & Johnson |
| |||||||
2.63%, 1/15/2025 | 400,000 | 399,702 | ||||||
Merck & Co., Inc. |
| |||||||
2.75%, 2/10/2025 | 365,000 | 364,220 | ||||||
Novartis Capital Corp. |
| |||||||
3.40%, 5/6/2024 | 200,000 | 205,969 | ||||||
3.10%, 5/17/2027 | 100,000 | 100,360 | ||||||
Pfizer, Inc. |
| |||||||
1.95%, 6/3/2021 | 150,000 | 148,573 | ||||||
3.00%, 12/15/2026 | 250,000 | 250,334 | ||||||
Shire Acquisitions Investments Ireland DAC |
| |||||||
2.88%, 9/23/2023 | 350,000 | 345,552 | ||||||
3.20%, 9/23/2026 | 300,000 | 292,235 |
Investments | Principal Amount | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Zoetis, Inc. |
| |||||||
3.25%, 2/1/2023 | $ | 150,000 | $ | 151,311 | ||||
3.00%, 9/12/2027 | 100,000 | 96,019 | ||||||
3,315,948 | ||||||||
Road & Rail – 1.0% | ||||||||
CSX Corp. |
| |||||||
2.60%, 11/1/2026 | 150,000 | 143,620 | ||||||
3.25%, 6/1/2027 | 100,000 | 99,602 | ||||||
4.25%, 3/15/2029 | 200,000 | 213,594 | ||||||
Norfolk Southern Corp. |
| |||||||
2.90%, 2/15/2023 | 250,000 | 250,729 | ||||||
Union Pacific Corp. |
| |||||||
4.16%, 7/15/2022 | 100,000 | 103,961 | ||||||
3.95%, 9/10/2028 | 250,000 | 262,993 | ||||||
1,074,499 | ||||||||
Semiconductors & Semiconductor Equipment – 1.0% | ||||||||
Analog Devices, Inc. |
| |||||||
3.50%, 12/5/2026 | 250,000 | 251,204 | ||||||
Intel Corp. |
| |||||||
2.70%, 12/15/2022 | 200,000 | 200,722 | ||||||
2.60%, 5/19/2026 | 150,000 | 146,181 | ||||||
QUALCOMM, Inc. |
| |||||||
3.00%, 5/20/2022 | 200,000 | 201,456 | ||||||
3.25%, 5/20/2027 | 250,000 | 248,813 | ||||||
1,048,376 | ||||||||
Software – 2.2% | ||||||||
Microsoft Corp. |
| |||||||
2.38%, 2/12/2022 | 400,000 | 399,030 | ||||||
2.88%, 2/6/2024 | 200,000 | 202,068 | ||||||
2.70%, 2/12/2025 | 140,000 | 139,757 | ||||||
3.13%, 11/3/2025 | 150,000 | 153,381 | ||||||
2.40%, 8/8/2026 | 100,000 | 96,905 | ||||||
Oracle Corp. |
| |||||||
2.63%, 2/15/2023 | 660,000 | 658,133 | ||||||
2.95%, 5/15/2025 | 200,000 | 199,231 | ||||||
2.65%, 7/15/2026 | 200,000 | 194,156 | ||||||
3.25%, 11/15/2027 | 200,000 | 201,309 | ||||||
2,243,970 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 275 |
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Specialty Retail – 0.7% | ||||||||
Home Depot, Inc. (The) |
| |||||||
2.63%, 6/1/2022 | $ | 200,000 | $ | 200,533 | ||||
3.00%, 4/1/2026 | 130,000 | 130,702 | ||||||
Lowe’s Cos., Inc. |
| |||||||
3.38%, 9/15/2025 | 100,000 | 101,139 | ||||||
3.10%, 5/3/2027 | 300,000 | 292,937 | ||||||
725,311 | ||||||||
Technology Hardware, Storage & Peripherals – 1.9% | ||||||||
Apple, Inc. |
| |||||||
2.50%, 2/9/2022 | 350,000 | 349,522 | ||||||
3.00%, 2/9/2024 | 225,000 | 227,294 | ||||||
3.45%, 5/6/2024 | 450,000 | 464,326 | ||||||
3.20%, 5/13/2025 | 250,000 | 254,974 | ||||||
2.90%, 9/12/2027 | 500,000 | 492,197 | ||||||
Hewlett Packard Enterprise Co. |
| |||||||
4.40%, 10/15/2022(b) | 200,000 | 209,291 | ||||||
1,997,604 | ||||||||
Tobacco – 1.9% | ||||||||
Altria Group, Inc. |
| |||||||
3.49%, 2/14/2022 | 200,000 | 202,702 | ||||||
2.85%, 8/9/2022 | 160,000 | 159,188 | ||||||
4.00%, 1/31/2024 | 100,000 | 102,832 | ||||||
2.63%, 9/16/2026 | 160,000 | 148,606 | ||||||
Philip Morris International, Inc. |
| |||||||
2.50%, 11/2/2022 | 300,000 | 297,035 | ||||||
2.75%, 2/25/2026 | 400,000 | 389,735 | ||||||
Reynolds American, Inc. |
| |||||||
4.00%, 6/12/2022 | 650,000 | 665,295 | ||||||
1,965,393 | ||||||||
Trading Companies & Distributors – 0.5% | ||||||||
Air Lease Corp. |
| |||||||
3.38%, 6/1/2021 | 105,000 | 105,720 | ||||||
3.00%, 9/15/2023 | 405,000 | 398,133 | ||||||
503,853 | ||||||||
Total Corporate Bonds (Cost $100,609,797) |
| 102,638,177 | ||||||
Total Investments – 98.8% (Cost $100,609,797) |
| 102,638,177 | ||||||
Other Assets Less Liabilities – 1.2% |
| 1,222,529 | ||||||
NET ASSETS – 100.0% |
| $ | 103,860,706 |
(a) | Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the rate in effect as of period end. |
(b) | Step bond. Interest 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 April 30, 2019. |
(c) | Securities exempt from registration under Rule 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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 2,125,375 | ||
Aggregate gross unrealized depreciation | (106,387 | ) | ||
Net unrealized appreciation | $ | 2,018,988 | ||
Federal income tax cost | $ | 100,619,189 |
See Accompanying Notes to the Financial Statements.
276 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Credit-Scored US Long Corporate Bond Index Fund
April 30, 2019 (Unaudited)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – 98.4% | ||||||||
Aerospace & Defense – 2.9% | ||||||||
Harris Corp. |
| |||||||
5.05%, 4/27/2045 | $ | 25,000 | $ | 27,730 | ||||
Lockheed Martin Corp. |
| |||||||
4.70%, 5/15/2046 | 150,000 | 167,822 | ||||||
Northrop Grumman Corp. |
| |||||||
4.75%, 6/1/2043 | 125,000 | 135,776 | ||||||
Raytheon Co. |
| |||||||
4.88%, 10/15/2040 | 20,000 | 23,152 | ||||||
United Technologies Corp. |
| |||||||
5.70%, 4/15/2040 | 140,000 | 164,140 | ||||||
4.50%, 6/1/2042 | 205,000 | 213,108 | ||||||
4.05%, 5/4/2047 | 115,000 | 111,421 | ||||||
843,149 | ||||||||
Air Freight & Logistics – 1.5% | ||||||||
FedEx Corp. |
| |||||||
3.90%, 2/1/2035 | 100,000 | 94,942 | ||||||
5.10%, 1/15/2044 | 65,000 | 68,424 | ||||||
4.75%, 11/15/2045 | 120,000 | 118,683 | ||||||
United Parcel Service, Inc. |
| |||||||
3.75%, 11/15/2047 | 50,000 | 47,686 | ||||||
4.25%, 3/15/2049 | 100,000 | 102,979 | ||||||
432,714 | ||||||||
Automobiles – 0.9% | ||||||||
Daimler Finance North America LLC |
| |||||||
8.50%, 1/18/2031 | 75,000 | 108,223 | ||||||
General Motors Co. |
| |||||||
6.25%, 10/2/2043 | 150,000 | 158,363 | ||||||
266,586 | ||||||||
Banks – 9.9% | ||||||||
Bank of America Corp. |
| |||||||
4.24%, 4/24/2038(a) | 300,000 | 310,104 | ||||||
5.00%, 1/21/2044 | 95,000 | 107,945 | ||||||
Citigroup, Inc. |
| |||||||
6.63%, 6/15/2032 | 250,000 | 310,218 | ||||||
8.13%, 7/15/2039 | 27,000 | 40,938 | ||||||
5.88%, 1/30/2042 | 40,000 | 49,769 | ||||||
5.30%, 5/6/2044 | 145,000 | 162,720 | ||||||
4.65%, 7/30/2045 | 105,000 | 112,664 |
Investments | Principal Amount | Value | ||||||
Banks – (continued) | ||||||||
4.75%, 5/18/2046 | $ | 40,000 | $ | 42,118 | ||||
4.28%, 4/24/2048(a) | 70,000 | 72,572 | ||||||
4.65%, 7/23/2048 | 50,000 | 54,031 | ||||||
Fifth Third Bancorp |
| |||||||
8.25%, 3/1/2038 | 30,000 | 42,339 | ||||||
HSBC Holdings plc |
| |||||||
6.10%, 1/14/2042 | 175,000 | 229,137 | ||||||
JPMorgan Chase & Co. |
| |||||||
6.40%, 5/15/2038 | 205,000 | 269,008 | ||||||
4.95%, 6/1/2045 | 265,000 | 295,203 | ||||||
4.26%, 2/22/2048(a) | 250,000 | 256,861 | ||||||
3.90%, 1/23/2049(a) | 120,000 | 116,611 | ||||||
Wells Fargo & Co. |
| |||||||
5.38%, 11/2/2043 | 175,000 | 198,113 | ||||||
5.61%, 1/15/2044 | 135,000 | 158,166 | ||||||
2,828,517 | ||||||||
Beverages – 0.7% | ||||||||
Diageo Capital plc |
| |||||||
5.88%, 9/30/2036 | 50,000 | 62,391 | ||||||
PepsiCo, Inc. |
| |||||||
3.45%, 10/6/2046 | 135,000 | 129,635 | ||||||
192,026 | ||||||||
Biotechnology – 4.8% | ||||||||
AbbVie, Inc. |
| |||||||
4.50%, 5/14/2035 | 80,000 | 78,387 | ||||||
4.40%, 11/6/2042 | 170,000 | 157,842 | ||||||
4.70%, 5/14/2045 | 200,000 | 191,911 | ||||||
Amgen, Inc. |
| |||||||
6.38%, 6/1/2037 | 20,000 | 24,695 | ||||||
5.15%, 11/15/2041 | 65,000 | 69,937 | ||||||
4.40%, 5/1/2045 | 150,000 | 147,557 | ||||||
4.66%, 6/15/2051 | 80,000 | 80,946 | ||||||
Biogen, Inc. |
| |||||||
5.20%, 9/15/2045 | 95,000 | 101,340 | ||||||
Celgene Corp. |
| |||||||
5.00%, 8/15/2045 | 200,000 | 215,445 | ||||||
Gilead Sciences, Inc. |
| |||||||
4.75%, 3/1/2046 | 150,000 | 157,014 | ||||||
4.15%, 3/1/2047 | 160,000 | 153,338 | ||||||
1,378,412 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 277 |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Building Products – 0.4% | ||||||||
Johnson Controls International plc |
| |||||||
5.13%, 9/14/2045 | $ | 100,000 | $ | 104,009 | ||||
Capital Markets – 5.9% | ||||||||
CME Group, Inc. |
| |||||||
5.30%, 9/15/2043 | 30,000 | 36,366 | ||||||
Credit Suisse USA, Inc. |
| |||||||
7.13%, 7/15/2032 | 75,000 | 101,537 | ||||||
Goldman Sachs Group, Inc. (The) |
| |||||||
6.75%, 10/1/2037 | 195,000 | 240,983 | ||||||
4.02%, 10/31/2038(a) | 150,000 | 145,850 | ||||||
6.25%, 2/1/2041 | 220,000 | 276,407 | ||||||
5.15%, 5/22/2045 | 200,000 | 214,287 | ||||||
4.75%, 10/21/2045 | 115,000 | 122,833 | ||||||
Morgan Stanley |
| |||||||
6.38%, 7/24/2042 | 90,000 | 117,949 | ||||||
4.30%, 1/27/2045 | 170,000 | 174,696 | ||||||
4.38%, 1/22/2047 | 200,000 | 208,073 | ||||||
Raymond James Financial, Inc. |
| |||||||
4.95%, 7/15/2046 | 50,000 | 52,610 | ||||||
1,691,591 | ||||||||
Chemicals – 1.1% | ||||||||
Eastman Chemical Co. |
| |||||||
4.80%, 9/1/2042 | 50,000 | 50,559 | ||||||
International Flavors & Fragrances, Inc. |
| |||||||
4.38%, 6/1/2047 | 50,000 | 48,079 | ||||||
LYB International Finance BV |
| |||||||
4.88%, 3/15/2044 | 150,000 | 149,541 | ||||||
Praxair, Inc. |
| |||||||
3.55%, 11/7/2042 | 10,000 | 9,585 | ||||||
Sherwin-Williams Co. (The) |
| |||||||
4.50%, 6/1/2047 | 50,000 | 49,682 | ||||||
307,446 | ||||||||
Communications Equipment – 0.4% | ||||||||
Cisco Systems, Inc. |
| |||||||
5.90%, 2/15/2039 | 100,000 | 130,226 | ||||||
Containers & Packaging – 0.1% | ||||||||
Sonoco Products Co. |
| |||||||
5.75%, 11/1/2040 | 25,000 | 27,390 |
Investments | Principal Amount | Value | ||||||
Diversified Financial Services – 0.9% | ||||||||
Shell International Finance BV |
| |||||||
6.38%, 12/15/2038 | $ | 100,000 | $ | 133,545 | ||||
4.38%, 5/11/2045 | 125,000 | 135,233 | ||||||
268,778 | ||||||||
Diversified Telecommunication Services – 9.3% | ||||||||
AT&T, Inc. |
| |||||||
4.50%, 5/15/2035 | 50,000 | 50,286 | ||||||
5.35%, 9/1/2040 | 100,000 | 107,050 | ||||||
4.30%, 12/15/2042 | 400,000 | 378,327 | ||||||
Bell Canada, Inc. |
| |||||||
4.46%, 4/1/2048 | 50,000 | 51,358 | ||||||
British Telecommunications plc |
| |||||||
9.63%, 12/15/2030(b) | 95,000 | 137,361 | ||||||
Deutsche Telekom International Finance BV |
| |||||||
8.75%, 6/15/2030(b) | 180,000 | 251,826 | ||||||
Orange SA |
| |||||||
9.00%, 3/1/2031(b) | 90,000 | 131,958 | ||||||
Verizon Communications, Inc. |
| |||||||
4.27%, 1/15/2036 | 175,000 | 179,346 | ||||||
5.25%, 3/16/2037 | 230,000 | 262,156 | ||||||
4.75%, 11/1/2041 | 230,000 | 247,726 | ||||||
4.86%, 8/21/2046 | 135,000 | 147,080 | ||||||
5.50%, 3/16/2047 | 270,000 | 321,856 | ||||||
5.01%, 8/21/2054 | 350,000 | 391,745 | ||||||
2,658,075 | ||||||||
Electric Utilities – 3.8% | ||||||||
Alabama Power Co. |
| |||||||
Series A, 4.30%, 7/15/2048 | 150,000 | 158,903 | ||||||
Appalachian Power Co. |
| |||||||
7.00%, 4/1/2038 | 35,000 | 47,031 | ||||||
Commonwealth Edison Co. |
| |||||||
5.90%, 3/15/2036 | 125,000 | 154,980 | ||||||
Duke Energy Carolinas LLC |
| |||||||
3.95%, 3/15/2048 | 150,000 | 151,539 | ||||||
Duke Energy Corp. |
| |||||||
3.95%, 8/15/2047 | 150,000 | 143,716 | ||||||
FirstEnergy Corp. |
| |||||||
Series C, 7.38%, 11/15/2031 | 60,000 | 79,382 | ||||||
Florida Power & Light Co. |
| |||||||
4.13%, 2/1/2042 | 85,000 | 88,876 | ||||||
Public Service Electric & Gas Co. |
| |||||||
3.80%, 3/1/2046 | 50,000 | 49,815 |
See Accompanying Notes to the Financial Statements.
278 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
South Carolina Electric & Gas Co. |
| |||||||
6.05%, 1/15/2038 | $ | 75,000 | $ | 92,953 | ||||
Virginia Electric & Power Co. |
| |||||||
Series D, 4.65%, 8/15/2043 | 100,000 | 108,972 | ||||||
1,076,167 | ||||||||
Electrical Equipment – 0.1% | ||||||||
Eaton Corp. |
| |||||||
4.15%, 11/2/2042 | 35,000 | 35,025 | ||||||
Electronic Equipment, Instruments & Components – 0.2% | ||||||||
Corning, Inc. |
| |||||||
4.75%, 3/15/2042 | 50,000 | 51,421 | ||||||
Energy Equipment & Services – 0.9% | ||||||||
Halliburton Co. |
| |||||||
4.85%, 11/15/2035 | 260,000 | 272,897 | ||||||
Entertainment – 1.4% | ||||||||
NBCUniversal Media LLC |
| |||||||
5.95%, 4/1/2041 | 115,000 | 142,151 | ||||||
4.45%, 1/15/2043 | 165,000 | 171,672 | ||||||
Walt Disney Co. (The) |
| |||||||
6.20%, 12/15/2034(c) | 75,000 | 97,460 | ||||||
411,283 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 0.8% | ||||||||
ERP Operating LP |
| |||||||
4.50%, 7/1/2044 | 25,000 | 27,171 | ||||||
Federal Realty Investment Trust |
| |||||||
4.50%, 12/1/2044 | 30,000 | 31,380 | ||||||
Simon Property Group LP |
| |||||||
4.75%, 3/15/2042 | 85,000 | 94,506 | ||||||
Welltower, Inc. |
| |||||||
4.95%, 9/1/2048 | 15,000 | 15,932 | ||||||
Weyerhaeuser Co. |
| |||||||
7.38%, 3/15/2032 | 40,000 | 53,678 | ||||||
222,667 | ||||||||
Food & Staples Retailing – 1.4% | ||||||||
Sysco Corp. |
| |||||||
4.85%, 10/1/2045 | 40,000 | 42,874 | ||||||
Walgreen Co. |
| |||||||
4.40%, 9/15/2042 | 105,000 | 93,233 |
Investments | Principal Amount | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
Walmart, Inc. |
| |||||||
6.50%, 8/15/2037 | $ | 100,000 | $ | 136,799 | ||||
4.05%, 6/29/2048 | 125,000 | 131,697 | ||||||
404,603 | ||||||||
Food Products – 1.0% | ||||||||
Archer-Daniels-Midland Co. |
| |||||||
4.50%, 3/15/2049 | 50,000 | 54,544 | ||||||
Kellogg Co. |
| |||||||
Series B, 7.45%, 4/1/2031 | 50,000 | 64,480 | ||||||
Mead Johnson Nutrition Co. |
| |||||||
4.60%, 6/1/2044 | 35,000 | 38,185 | ||||||
Tyson Foods, Inc. |
| |||||||
4.88%, 8/15/2034 | 100,000 | 106,247 | ||||||
Unilever Capital Corp. |
| |||||||
5.90%, 11/15/2032 | 25,000 | 31,241 | ||||||
294,697 | ||||||||
Gas Utilities – 0.7% | ||||||||
Atmos Energy Corp. |
| |||||||
4.13%, 10/15/2044 | 50,000 | 51,583 | ||||||
Dominion Energy Gas Holdings LLC |
| |||||||
4.60%, 12/15/2044 | 50,000 | 51,615 | ||||||
Southern California Gas Co. |
| |||||||
Series VV, 4.30%, 1/15/2049 | 100,000 | 106,030 | ||||||
209,228 | ||||||||
Health Care Equipment & Supplies – 1.2% | ||||||||
Abbott Laboratories |
| |||||||
4.90%, 11/30/2046 | 100,000 | 114,166 | ||||||
Koninklijke Philips NV |
| |||||||
5.00%, 3/15/2042 | 40,000 | 44,578 | ||||||
Medtronic, Inc. |
| |||||||
4.38%, 3/15/2035 | 145,000 | 156,365 | ||||||
Stryker Corp. |
| |||||||
4.63%, 3/15/2046 | 40,000 | 42,948 | ||||||
358,057 | ||||||||
Health Care Providers & Services – 0.7% | ||||||||
AmerisourceBergen Corp. |
| |||||||
4.25%, 3/1/2045 | 50,000 | 44,164 | ||||||
Humana, Inc. |
| |||||||
4.95%, 10/1/2044 | 15,000 | 15,612 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 279 |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
Laboratory Corp. of America Holdings |
| |||||||
4.70%, 2/1/2045 | $ | 50,000 | $ | 48,762 | ||||
UnitedHealth Group, Inc. |
| |||||||
4.45%, 12/15/2048 | 100,000 | 106,261 | ||||||
214,799 | ||||||||
Hotels, Restaurants & Leisure – 1.6% | ||||||||
McDonald’s Corp. |
| |||||||
6.30%, 3/1/2038 | 185,000 | 230,456 | ||||||
4.88%, 12/9/2045 | 150,000 | 162,117 | ||||||
Starbucks Corp. |
| |||||||
3.75%, 12/1/2047 | 75,000 | 67,685 | ||||||
460,258 | ||||||||
Household Products – 0.2% | ||||||||
Kimberly-Clark Corp. |
| |||||||
6.63%, 8/1/2037 | 50,000 | 66,791 | ||||||
Industrial Conglomerates – 0.3% | ||||||||
3M Co. |
| |||||||
3.63%, 10/15/2047 | 50,000 | 48,560 | ||||||
Ingersoll-Rand Global Holding Co. Ltd. |
| |||||||
5.75%, 6/15/2043 | 25,000 | 29,397 | ||||||
77,957 | ||||||||
Insurance – 3.6% | ||||||||
Allstate Corp. (The) |
| |||||||
6.50%, 5/15/2057(a) | 15,000 | 16,526 | ||||||
American International Group, Inc. |
| |||||||
3.88%, 1/15/2035 | 130,000 | 120,656 | ||||||
4.50%, 7/16/2044 | 40,000 | 39,130 | ||||||
Aon plc |
| |||||||
4.60%, 6/14/2044 | 65,000 | 66,591 | ||||||
Berkshire Hathaway Finance Corp. |
| |||||||
5.75%, 1/15/2040 | 75,000 | 93,107 | ||||||
Chubb Corp. (The) |
| |||||||
6.00%, 5/11/2037 | 65,000 | 82,837 | ||||||
Manulife Financial Corp. |
| |||||||
5.38%, 3/4/2046 | 35,000 | 41,383 | ||||||
Marsh & McLennan Cos., Inc. |
| |||||||
4.35%, 1/30/2047 | 75,000 | 76,304 | ||||||
4.90%, 3/15/2049 | 75,000 | 82,896 |
Investments | Principal Amount | Value | ||||||
Insurance – (continued) | ||||||||
MetLife, Inc. |
| |||||||
6.40%, 12/15/2036 | $ | 70,000 | $ | 77,582 | ||||
4.13%, 8/13/2042 | 80,000 | 81,405 | ||||||
4.60%, 5/13/2046 | 55,000 | 59,983 | ||||||
Principal Financial Group, Inc. |
| |||||||
6.05%, 10/15/2036 | 30,000 | 36,111 | ||||||
Prudential Financial, Inc. |
| |||||||
3.94%, 12/7/2049 | 50,000 | 48,986 | ||||||
Travelers Cos., Inc. (The) |
| |||||||
4.05%, 3/7/2048 | 100,000 | 102,958 | ||||||
1,026,455 | ||||||||
Internet & Direct Marketing Retail – 1.7% | ||||||||
Alibaba Group Holding Ltd. |
| |||||||
4.00%, 12/6/2037 | 300,000 | 292,529 | ||||||
Amazon.com, Inc. |
| |||||||
4.25%, 8/22/2057 | 150,000 | 158,961 | ||||||
eBay, Inc. |
| |||||||
4.00%, 7/15/2042 | 40,000 | 35,287 | ||||||
486,777 | ||||||||
IT Services – 1.0% | ||||||||
Fidelity National Information Services, Inc. |
| |||||||
4.75%, 5/15/2048 | 50,000 | 51,418 | ||||||
International Business Machines Corp. |
| |||||||
5.88%, 11/29/2032 | 125,000 | 154,077 | ||||||
Visa, Inc. |
| |||||||
4.30%, 12/14/2045 | 80,000 | 87,403 | ||||||
292,898 | ||||||||
Life Sciences Tools & Services – 0.2% | ||||||||
Thermo Fisher Scientific, Inc. |
| |||||||
4.10%, 8/15/2047 | 50,000 | 49,421 | ||||||
Machinery – 0.2% | ||||||||
Fortive Corp. |
| |||||||
4.30%, 6/15/2046 | 30,000 | 29,291 | ||||||
Illinois Tool Works, Inc. |
| |||||||
3.90%, 9/1/2042 | 30,000 | 31,040 | ||||||
60,331 | ||||||||
Media – 3.4% | ||||||||
CBS Corp. |
| |||||||
4.60%, 1/15/2045 | 100,000 | 96,699 |
See Accompanying Notes to the Financial Statements.
280 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Media – (continued) | ||||||||
Comcast Corp. |
| |||||||
4.60%, 10/15/2038 | $ | 500,000 | $ | 539,073 | ||||
3.40%, 7/15/2046 | 165,000 | 146,745 | ||||||
4.00%, 11/1/2049 | 200,000 | 194,975 | ||||||
977,492 | ||||||||
Metals & Mining – 1.4% | ||||||||
BHP Billiton Finance USA Ltd. |
| |||||||
5.00%, 9/30/2043 | 50,000 | 58,105 | ||||||
Newmont Goldcorp Corp. |
| |||||||
5.88%, 4/1/2035 | 150,000 | 171,610 | ||||||
Nucor Corp. |
| |||||||
4.40%, 5/1/2048 | 75,000 | 77,474 | ||||||
Rio Tinto Finance USA Ltd. |
| |||||||
5.20%, 11/2/2040 | 75,000 | 88,839 | ||||||
396,028 | ||||||||
Multi-Utilities – 2.8% | ||||||||
Berkshire Hathaway Energy Co. |
| |||||||
5.15%, 11/15/2043 | 130,000 | 149,823 | ||||||
4.50%, 2/1/2045 | 110,000 | 116,519 | ||||||
Consolidated Edison Co. of New York, Inc. | ||||||||
4.63%, 12/1/2054 | 131,000 | 139,416 | ||||||
4.50%, 5/15/2058 | 150,000 | 156,695 | ||||||
Dominion Energy, Inc. |
| |||||||
Series B, 5.95%, 6/15/2035 | 155,000 | 180,270 | ||||||
Southern Co. Gas Capital Corp. |
| |||||||
3.95%, 10/1/2046 | 50,000 | 46,708 | ||||||
789,431 | ||||||||
Oil, Gas & Consumable Fuels – 9.1% | ||||||||
Apache Corp. |
| |||||||
6.00%, 1/15/2037 | 70,000 | 77,280 | ||||||
4.75%, 4/15/2043 | 100,000 | 96,023 | ||||||
Canadian Natural Resources Ltd. |
| |||||||
6.25%, 3/15/2038 | 100,000 | 120,270 | ||||||
Concho Resources, Inc. |
| |||||||
4.88%, 10/1/2047 | 50,000 | 53,032 | ||||||
ConocoPhillips |
| |||||||
5.90%, 10/15/2032 | 140,000 | 173,426 | ||||||
Devon Energy Corp. |
| |||||||
5.60%, 7/15/2041 | 100,000 | 110,879 |
Investments | Principal Amount | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Enterprise Products Operating LLC |
| |||||||
5.95%, 2/1/2041 | $ | 125,000 | $ | 148,628 | ||||
4.85%, 3/15/2044 | 150,000 | 158,961 | ||||||
4.25%, 2/15/2048 | 100,000 | 98,208 | ||||||
Exxon Mobil Corp. |
| |||||||
4.11%, 3/1/2046 | 75,000 | 79,961 | ||||||
Kinder Morgan, Inc. |
| |||||||
5.55%, 6/1/2045 | 225,000 | 245,448 | ||||||
Magellan Midstream Partners LP |
| |||||||
5.15%, 10/15/2043 | 20,000 | 21,749 | ||||||
4.20%, 10/3/2047 | 80,000 | 77,262 | ||||||
Marathon Petroleum Corp. |
| |||||||
6.50%, 3/1/2041 | 80,000 | 97,416 | ||||||
MPLX LP |
| |||||||
5.50%, 2/15/2049 | 50,000 | 54,059 | ||||||
Occidental Petroleum Corp. |
| |||||||
4.63%, 6/15/2045 | 100,000 | 102,470 | ||||||
ONEOK Partners LP |
| |||||||
6.13%, 2/1/2041 | 60,000 | 67,352 | ||||||
Petro-Canada |
| |||||||
5.95%, 5/15/2035 | 120,000 | 143,450 | ||||||
Phillips 66 |
| |||||||
5.88%, 5/1/2042 | 155,000 | 186,061 | ||||||
4.88%, 11/15/2044 | 50,000 | 53,784 | ||||||
Phillips 66 Partners LP |
| |||||||
4.90%, 10/1/2046 | 30,000 | 30,393 | ||||||
Plains All American Pipeline LP |
| |||||||
5.15%, 6/1/2042 | 100,000 | 96,771 | ||||||
Suncor Energy, Inc. |
| |||||||
4.00%, 11/15/2047 | 135,000 | 132,063 | ||||||
TransCanada PipeLines Ltd. |
| |||||||
4.63%, 3/1/2034 | 50,000 | 52,024 | ||||||
Valero Energy Corp. |
| |||||||
6.63%, 6/15/2037 | 105,000 | 128,882 | ||||||
2,605,852 | ||||||||
Pharmaceuticals – 4.4% | ||||||||
AstraZeneca plc |
| |||||||
6.45%, 9/15/2037 | 50,000 | 63,572 | ||||||
4.38%, 11/16/2045 | 135,000 | 139,383 | ||||||
Eli Lilly & Co. |
| |||||||
3.70%, 3/1/2045 | 30,000 | 29,164 | ||||||
4.15%, 3/15/2059 | 100,000 | 102,762 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 281 |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
GlaxoSmithKline Capital, Inc. |
| |||||||
5.38%, 4/15/2034 | $ | 35,000 | $ | 41,916 | ||||
6.38%, 5/15/2038 | 50,000 | 65,946 | ||||||
Johnson & Johnson |
| |||||||
3.63%, 3/3/2037 | 100,000 | 100,881 | ||||||
3.70%, 3/1/2046 | 120,000 | 120,159 | ||||||
Merck & Co., Inc. |
| |||||||
3.70%, 2/10/2045 | 55,000 | 53,997 | ||||||
4.00%, 3/7/2049 | 50,000 | 51,244 | ||||||
Novartis Capital Corp. |
| |||||||
4.40%, 5/6/2044 | 75,000 | 82,472 | ||||||
Wyeth LLC |
| |||||||
6.50%, 2/1/2034 | 240,000 | 316,005 | ||||||
Zoetis, Inc. |
| |||||||
4.70%, 2/1/2043 | 90,000 | 95,816 | ||||||
1,263,317 | ||||||||
Road & Rail – 4.2% | ||||||||
Burlington Northern Santa Fe LLC |
| |||||||
5.15%, 9/1/2043 | 175,000 | 205,956 | ||||||
Canadian National Railway Co. |
| |||||||
3.20%, 8/2/2046 | 50,000 | 46,416 | ||||||
CSX Corp. |
| |||||||
6.15%, 5/1/2037 | 160,000 | 195,313 | ||||||
4.10%, 3/15/2044 | 115,000 | 113,980 | ||||||
Norfolk Southern Corp. |
| |||||||
4.84%, 10/1/2041 | 165,000 | 180,915 | ||||||
3.94%, 11/1/2047 | 100,000 | 97,334 | ||||||
Union Pacific Corp. |
| |||||||
4.05%, 3/1/2046 | 160,000 | 157,214 | ||||||
4.50%, 9/10/2048 | 50,000 | 53,079 | ||||||
4.30%, 3/1/2049 | 150,000 | 154,711 | ||||||
1,204,918 | ||||||||
Semiconductors & Semiconductor Equipment – 1.3% | ||||||||
Applied Materials, Inc. |
| |||||||
5.85%, 6/15/2041 | 25,000 | 30,821 | ||||||
4.35%, 4/1/2047 | 80,000 | 83,675 | ||||||
Intel Corp. |
| |||||||
3.73%, 12/8/2047 | 100,000 | 97,812 | ||||||
QUALCOMM, Inc. |
| |||||||
4.80%, 5/20/2045 | 45,000 | 48,290 | ||||||
4.30%, 5/20/2047 | 115,000 | 116,496 | ||||||
377,094 |
Investments | Principal Amount | Value | ||||||
Software – 4.1% | ||||||||
Microsoft Corp. |
| |||||||
3.50%, 2/12/2035 | $ | 235,000 | $ | 236,774 | ||||
3.95%, 8/8/2056 | 205,000 | 209,659 | ||||||
4.50%, 2/6/2057 | 130,000 | 146,346 | ||||||
Oracle Corp. |
| |||||||
6.13%, 7/8/2039 | 125,000 | 160,764 | ||||||
4.38%, 5/15/2055 | 395,000 | 412,138 | ||||||
1,165,681 | ||||||||
Specialty Retail – 1.5% | ||||||||
Home Depot, Inc. (The) |
| |||||||
5.88%, 12/16/2036 | 195,000 | 246,639 | ||||||
3.50%, 9/15/2056 | 55,000 | 50,250 | ||||||
Lowe’s Cos., Inc. |
| |||||||
4.05%, 5/3/2047 | 145,000 | 135,647 | ||||||
432,536 | ||||||||
Technology Hardware, Storage & Peripherals – 1.9% | ||||||||
Apple, Inc. |
| |||||||
4.65%, 2/23/2046 | 345,000 | 383,804 | ||||||
Hewlett Packard Enterprise Co. |
| |||||||
6.35%, 10/15/2045(b) | 100,000 | 106,523 | ||||||
HP, Inc. |
| |||||||
6.00%, 9/15/2041 | 40,000 | 42,523 | ||||||
�� | 532,850 | |||||||
Textiles, Apparel & Luxury Goods – 0.2% | ||||||||
NIKE, Inc. |
| |||||||
3.63%, 5/1/2043 | 50,000 | 48,922 | ||||||
Tobacco – 2.4% | ||||||||
Altria Group, Inc. |
| |||||||
4.25%, 8/9/2042 | 105,000 | 93,149 | ||||||
5.38%, 1/31/2044 | 145,000 | 147,827 | ||||||
5.95%, 2/14/2049 | 100,000 | 108,271 | ||||||
Philip Morris International, Inc. |
| |||||||
6.38%, 5/16/2038 | 130,000 | 163,434 | ||||||
4.13%, 3/4/2043 | 95,000 | 90,284 | ||||||
Reynolds American, Inc. |
| |||||||
5.70%, 8/15/2035 | 90,000 | 95,238 | ||||||
698,203 |
See Accompanying Notes to the Financial Statements.
282 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Trading Companies & Distributors – 0.1% | ||||||||
GATX Corp. |
| |||||||
4.70%, 4/1/2029 | $ | 15,000 | $ | 15,736 | ||||
Water Utilities – 0.3% | ||||||||
American Water Capital Corp. |
| |||||||
4.20%, 9/1/2048 | 80,000 | 81,331 | ||||||
Wireless Telecommunication Services – 1.5% | ||||||||
America Movil SAB de CV |
| |||||||
6.13%, 3/30/2040 | 150,000 | 187,399 | ||||||
Rogers Communications, Inc. |
| |||||||
5.00%, 3/15/2044 | 115,000 | 126,639 | ||||||
Telefonica Europe BV |
| |||||||
8.25%, 9/15/2030 | 50,000 | 67,451 | ||||||
Vodafone Group plc |
| |||||||
7.88%, 2/15/2030 | 30,000 | 38,611 | ||||||
420,100 | ||||||||
Total Corporate Bonds (Cost $27,617,673) |
| 28,210,142 | ||||||
ASSET-BACKED SECURITIES – 0.1% | ||||||||
Latam Airlines Pass-Through Trust A |
| |||||||
Series2015-1, Class A, | 20,293 | 20,209 | ||||||
Total Investments – 98.5% (Cost $27,637,372) |
| 28,230,351 | ||||||
Other Assets Less Liabilities – 1.5% |
| 427,512 | ||||||
NET ASSETS – 100.0% |
| $ | 28,657,863 |
(a) | Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the rate in effect as of period end. |
(b) | Step bond. Interest 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 April 30, 2019. |
(c) | Securities exempt from registration under Rule 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, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 783,222 | ||
Aggregate gross unrealized depreciation | (208,402 | ) | ||
Net unrealized appreciation | $ | 574,820 | ||
Federal income tax cost | $ | 27,655,531 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 283 |
Schedule of Investments
FlexShares® High Yield Value-Scored Bond Index Fund
April 30, 2019 (Unaudited)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – 96.8% | ||||||||
Aerospace & Defense – 2.3% | ||||||||
Arconic, Inc. |
| |||||||
6.75%, 1/15/2028 | $ | 100,000 | $ | 106,839 | ||||
Bombardier, Inc. |
| |||||||
7.88%, 4/15/2027(a) | 100,000 | 100,750 | ||||||
TransDigm UK Holdings plc |
| |||||||
6.88%, 5/15/2026(a) | 205,000 | 206,538 | ||||||
TransDigm, Inc. |
| |||||||
6.00%, 7/15/2022 | 200,000 | 203,250 | ||||||
6.38%, 6/15/2026 | 240,000 | 241,500 | ||||||
Triumph Group, Inc. |
| |||||||
4.88%, 4/1/2021 | 100,000 | 99,000 | ||||||
957,877 | ||||||||
Air Freight & Logistics – 0.2% | ||||||||
XPO Logistics, Inc. |
| |||||||
6.13%, 9/1/2023(a) | 100,000 | 102,500 | ||||||
Auto Components – 2.0% | ||||||||
Allison Transmission, Inc. |
| |||||||
5.00%, 10/1/2024(a) | 100,000 | 101,517 | ||||||
Dana Financing Luxembourg Sarl |
| |||||||
6.50%, 6/1/2026(a) | 130,000 | 136,662 | ||||||
Icahn Enterprises LP |
| |||||||
6.38%, 12/15/2025 | 210,000 | 219,450 | ||||||
JB Poindexter & Co., Inc. |
| |||||||
7.13%, 4/15/2026(a) | 80,000 | 82,000 | ||||||
Panther BF Aggregator 2 LP |
| |||||||
8.50%, 5/15/2027(a) | 300,000 | 310,950 | ||||||
850,579 | ||||||||
Banks – 0.9% | ||||||||
Societe Generale SA |
| |||||||
7.38%, 9/13/2021(a) (b) (c) | 160,000 | 166,800 | ||||||
8.00%, 9/29/2025(a) (b) (c) | 195,000 | 211,502 | ||||||
378,302 | ||||||||
Building Products – 1.4% | ||||||||
Griffon Corp. |
| |||||||
5.25%, 3/1/2022 | 160,000 | 160,600 | ||||||
NCI Building Systems, Inc. |
| |||||||
8.00%, 4/15/2026(a) | 160,000 | 149,800 |
Investments | Principal Amount | Value | ||||||
Building Products – (continued) | ||||||||
PGT Escrow Issuer, Inc. |
| |||||||
6.75%, 8/1/2026(a) | $ | 80,000 | $ | 83,576 | ||||
Standard Industries, Inc. |
| |||||||
5.38%, 11/15/2024(a) | 100,000 | 102,250 | ||||||
4.75%, 1/15/2028(a) | 80,000 | 76,900 | ||||||
573,126 | ||||||||
Capital Markets – 1.4% | ||||||||
Credit Suisse Group AG |
| |||||||
7.50%, 7/17/2023(a) (b) (c) | 270,000 | 284,677 | ||||||
Deutsche Bank AG |
| |||||||
4.30%, 5/24/2028(c) | 200,000 | 181,888 | ||||||
Donnelley Financial Solutions, Inc. |
| |||||||
8.25%, 10/15/2024 | 80,000 | 81,600 | ||||||
LPL Holdings, Inc. |
| |||||||
5.75%, 9/15/2025(a) | 30,000 | 30,600 | ||||||
578,765 | ||||||||
Chemicals – 2.3% | ||||||||
CF Industries, Inc. |
| |||||||
5.15%, 3/15/2034 | 80,000 | 77,800 | ||||||
Cornerstone Chemical Co. |
| |||||||
6.75%, 8/15/2024(a) | 100,000 | 97,750 | ||||||
FXI Holdings, Inc. |
| |||||||
7.88%, 11/1/2024(a) | 160,000 | 151,200 | ||||||
NOVA Chemicals Corp. |
| |||||||
5.25%, 6/1/2027(a) | 50,000 | 49,313 | ||||||
Rain CII Carbon LLC |
| |||||||
7.25%, 4/1/2025(a) | 100,000 | 95,000 | ||||||
SPCM SA |
| |||||||
4.88%, 9/15/2025(a) | 160,000 | 156,800 | ||||||
Starfruit Finco BV |
| |||||||
8.00%, 10/1/2026(a) | 150,000 | 154,320 | ||||||
TPC Group, Inc. |
| |||||||
8.75%, 12/15/2020(a) | 160,000 | 159,000 | ||||||
941,183 | ||||||||
Commercial Services & Supplies – 4.9% | ||||||||
ADT Security Corp. (The) |
| |||||||
3.50%, 7/15/2022 | 200,000 | 194,750 | ||||||
Algeco Global Finance plc |
| |||||||
8.00%, 2/15/2023(a) | 160,000 | 164,400 |
See Accompanying Notes to the Financial Statements.
284 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® High Yield Value-Scored Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Commercial Services & Supplies – (continued) | ||||||||
APX Group, Inc. |
| |||||||
7.88%, 12/1/2022 | $ | 240,000 | $ | 240,600 | ||||
Covanta Holding Corp. |
| |||||||
5.88%, 7/1/2025 | 160,000 | 164,600 | ||||||
Garda World Security Corp. |
| |||||||
8.75%, 5/15/2025(a) | 160,000 | 151,632 | ||||||
GFL Environmental, Inc. |
| |||||||
5.38%, 3/1/2023(a) | 160,000 | 156,400 | ||||||
Harland Clarke Holdings Corp. |
| |||||||
9.25%, 3/1/2021(a) | 180,000 | 184,950 | ||||||
KAR Auction Services, Inc. |
| |||||||
5.13%, 6/1/2025(a) | 130,000 | 130,650 | ||||||
Nielsen Finance LLC |
| |||||||
5.00%, 4/15/2022(a) | 190,000 | 189,692 | ||||||
Pitney Bowes, Inc. |
| |||||||
3.88%, 10/1/2021(d) | 190,000 | 189,050 | ||||||
Star Merger Sub, Inc. |
| |||||||
10.25%, 2/15/2027(a) | 125,000 | 130,938 | ||||||
West Corp. |
| |||||||
8.50%, 10/15/2025(a) | 160,000 | 141,800 | ||||||
2,039,462 | ||||||||
Communications Equipment – 0.9% | ||||||||
CommScope Technologies LLC |
| |||||||
6.00%, 6/15/2025(a) | 100,000 | 101,940 | ||||||
CommScope, Inc. |
| |||||||
5.50%, 6/15/2024(a) | 160,000 | 161,600 | ||||||
Riverbed Technology, Inc. |
| |||||||
8.88%, 3/1/2023(a) | 130,000 | 91,000 | ||||||
354,540 | ||||||||
Construction & Engineering – 0.5% | ||||||||
Brand Industrial Services, Inc. |
| |||||||
8.50%, 7/15/2025(a) | 240,000 | 226,200 | ||||||
Consumer Finance – 1.9% | ||||||||
Ally Financial, Inc. |
| |||||||
8.00%, 11/1/2031 | 65,000 | 83,525 | ||||||
Navient Corp. |
| |||||||
5.50%, 1/25/2023 | 265,000 | 270,631 | ||||||
6.75%, 6/15/2026 | 150,000 | 151,514 | ||||||
TMX Finance LLC |
| |||||||
11.13%, 4/1/2023(a) | 180,000 | 171,675 |
Investments | Principal Amount | Value | ||||||
Consumer Finance – (continued) | ||||||||
Voyager Aviation Holdings LLC |
| |||||||
8.50%, 8/15/2021(a) | $ | 130,000 | $ | 134,309 | ||||
811,654 | ||||||||
Containers & Packaging – 2.4% | ||||||||
Berry Global, Inc. |
| |||||||
5.13%, 7/15/2023 | 30,000 | 30,562 | ||||||
BWAY Holding Co. |
| |||||||
7.25%, 4/15/2025(a) | 300,000 | 293,250 | ||||||
Crown Cork & Seal Co., Inc. |
| |||||||
7.38%, 12/15/2026 | 70,000 | 78,750 | ||||||
Flex Acquisition Co., Inc. |
| |||||||
6.88%, 1/15/2025(a) | 130,000 | 121,875 | ||||||
7.88%, 7/15/2026(a) | 50,000 | 46,985 | ||||||
Intertape Polymer Group, Inc. |
| |||||||
7.00%, 10/15/2026(a) | 50,000 | 51,250 | ||||||
Pactiv LLC |
| |||||||
8.38%, 4/15/2027 | 95,000 | 98,087 | ||||||
Plastipak Holdings, Inc. |
| |||||||
6.25%, 10/15/2025(a) | 85,000 | 79,900 | ||||||
Reynolds Group Issuer, Inc. |
| |||||||
7.00%, 7/15/2024(a) | 100,000 | 103,563 | ||||||
Sealed Air Corp. |
| |||||||
5.25%, 4/1/2023(a) | 100,000 | 104,500 | ||||||
1,008,722 | ||||||||
Distributors – 0.3% | ||||||||
Core & Main LP |
| |||||||
6.13%, 8/15/2025(a) | 130,000 | 129,675 | ||||||
Diversified Consumer Services – 0.6% | ||||||||
Laureate Education, Inc. |
| |||||||
8.25%, 5/1/2025(a) | 160,000 | 174,000 | ||||||
Midas Intermediate Holdco II LLC |
| |||||||
7.88%, 10/1/2022(a) | 80,000 | 74,000 | ||||||
248,000 | ||||||||
Diversified Financial Services – 2.2% | ||||||||
ACE Cash Express, Inc. |
| |||||||
12.00%, 12/15/2022(a) | 70,000 | 65,800 | ||||||
Jefferies Finance LLC |
| |||||||
7.25%, 8/15/2024(a) | 160,000 | 158,800 | ||||||
Refinitiv US Holdings, Inc. |
| |||||||
8.25%, 11/15/2026(a) | 250,000 | 253,982 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 285 |
FlexShares® High Yield Value-Scored Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Diversified Financial Services – (continued) | ||||||||
Tempo Acquisition LLC |
| |||||||
6.75%, 6/1/2025(a) | $ | 190,000 | $ | 194,988 | ||||
Verscend Escrow Corp. |
| |||||||
9.75%, 8/15/2026(a) | 130,000 | 137,963 | ||||||
Voya Financial, Inc. |
| |||||||
5.65%, 5/15/2053(c) | 100,000 | 100,421 | ||||||
911,954 | ||||||||
Diversified Telecommunication Services – 3.1% | ||||||||
CCO Holdings LLC |
| |||||||
5.75%, 2/15/2026(a) | 105,000 | 109,935 | ||||||
5.13%, 5/1/2027(a) | 110,000 | 111,925 | ||||||
5.00%, 2/1/2028(a) | 160,000 | 160,200 | ||||||
CenturyLink, Inc. |
| |||||||
Series T, 5.80%, 3/15/2022 | 265,000 | 273,636 | ||||||
Series Y, 7.50%, 4/1/2024 | 200,000 | 215,250 | ||||||
Level 3 Financing, Inc. |
| |||||||
5.38%, 1/15/2024 | 50,000 | 50,750 | ||||||
Sprint Capital Corp. |
| |||||||
6.88%, 11/15/2028 | 220,000 | 211,200 | ||||||
Telecom Italia Capital SA |
| |||||||
6.38%, 11/15/2033 | 155,000 | 151,464 | ||||||
1,284,360 | ||||||||
Electrical Equipment – 0.5% | ||||||||
Vertiv Group Corp. |
| |||||||
9.25%, 10/15/2024(a) | 200,000 | 196,500 | ||||||
Electronic Equipment, Instruments & Components – 0.2% | ||||||||
CDW LLC |
| |||||||
5.00%, 9/1/2025 | 100,000 | 103,000 | ||||||
Energy Equipment & Services – 3.1% | ||||||||
Diamond Offshore Drilling, Inc. |
| |||||||
7.88%, 8/15/2025 | 160,000 | 157,200 | ||||||
KCA Deutag UK Finance plc |
| |||||||
9.63%, 4/1/2023(a) | 160,000 | 137,200 | ||||||
KLX Energy Services Holdings, Inc. |
| |||||||
11.50%, 11/1/2025(a) | 100,000 | 105,500 | ||||||
Nabors Industries, Inc. |
| |||||||
5.75%, 2/1/2025 | 100,000 | 91,500 | ||||||
Nine Energy Service, Inc. |
| |||||||
8.75%, 11/1/2023(a) | 100,000 | 103,750 |
Investments | Principal Amount | Value | ||||||
Energy Equipment & Services – (continued) | ||||||||
Noble Holding International Ltd. |
| |||||||
7.88%, 2/1/2026(a) | $ | 160,000 | $ | 155,400 | ||||
SESI LLC |
| |||||||
7.75%, 9/15/2024 | 180,000 | 133,650 | ||||||
Transocean, Inc. |
| |||||||
9.00%, 7/15/2023(a) | 190,000 | 204,013 | ||||||
7.50%, 1/15/2026(a) | 100,000 | 99,000 | ||||||
USA Compression Partners LP |
| �� | ||||||
6.88%, 4/1/2026 | 80,000 | 84,550 | ||||||
1,271,763 | ||||||||
Entertainment – 0.9% | ||||||||
Lions Gate Capital Holdings LLC |
| |||||||
6.38%, 2/1/2024(a) | 100,000 | 104,875 | ||||||
Netflix, Inc. |
| |||||||
5.88%, 11/15/2028 | 240,000 | 253,800 | ||||||
358,675 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.3% | ||||||||
Equinix, Inc. |
| |||||||
5.38%, 1/1/2022 | 200,000 | 205,500 | ||||||
5.75%, 1/1/2025 | 80,000 | 83,300 | ||||||
ESH Hospitality, Inc. |
| |||||||
5.25%, 5/1/2025(a) | 160,000 | 161,000 | ||||||
GEO Group, Inc. (The) |
| |||||||
5.88%, 10/15/2024 | 130,000 | 119,600 | ||||||
Iron Mountain, Inc. |
| |||||||
5.75%, 8/15/2024 | 160,000 | 161,600 | ||||||
iStar, Inc. |
| |||||||
6.00%, 4/1/2022 | 155,000 | 159,068 | ||||||
SBA Communications Corp. |
| |||||||
4.00%, 10/1/2022 | 110,000 | 111,100 | ||||||
Uniti Group LP |
| |||||||
6.00%, 4/15/2023(a) | 100,000 | 96,250 | ||||||
8.25%, 10/15/2023 | 295,000 | 276,194 | ||||||
1,373,612 | ||||||||
Food & Staples Retailing – 0.6% | ||||||||
Beverages & More, Inc. |
| |||||||
11.50%, 6/15/2022(a) | 80,000 | 58,800 | ||||||
Fresh Market, Inc. (The) |
| |||||||
9.75%, 5/1/2023(a) | 130,000 | 100,321 | ||||||
Rite Aid Corp. |
| |||||||
7.70%, 2/15/2027 | 160,000 | 98,400 | ||||||
257,521 |
See Accompanying Notes to the Financial Statements.
286 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® High Yield Value-Scored Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Food Products – 1.5% | ||||||||
Chobani LLC |
| |||||||
7.50%, 4/15/2025(a) | $ | 80,000 | $ | 73,200 | ||||
Dole Food Co., Inc. |
| |||||||
7.25%, 6/15/2025(a) | 80,000 | 74,400 | ||||||
Pilgrim’s Pride Corp. |
| |||||||
5.88%, 9/30/2027(a) | 80,000 | 82,800 | ||||||
Post Holdings, Inc. |
| |||||||
5.50%, 3/1/2025(a) | 80,000 | 82,200 | ||||||
Sigma Holdco BV |
| |||||||
7.88%, 5/15/2026(a) | 160,000 | 152,400 | ||||||
Simmons Foods, Inc. |
| |||||||
5.75%, 11/1/2024(a) | 160,000 | 148,000 | ||||||
613,000 | ||||||||
Gas Utilities – 1.0% | ||||||||
AmeriGas Partners LP |
| |||||||
5.50%, 5/20/2025 | 210,000 | 216,038 | ||||||
Suburban Propane Partners LP |
| |||||||
5.50%, 6/1/2024 | 160,000 | 160,003 | ||||||
Superior Plus LP |
| |||||||
7.00%, 7/15/2026(a) | 30,000 | 30,900 | ||||||
406,941 | ||||||||
Health Care Equipment & Supplies – 1.4% | ||||||||
Avantor, Inc. |
| |||||||
9.00%, 10/1/2025(a) | 210,000 | 228,900 | ||||||
Immucor, Inc. |
| |||||||
11.13%, 2/15/2022(a) | 80,000 | 81,600 | ||||||
Mallinckrodt International Finance SA | ||||||||
5.63%, 10/15/2023(a) | 200,000 | 157,000 | ||||||
Ortho-Clinical Diagnostics, Inc. |
| |||||||
6.63%, 5/15/2022(a) | 125,000 | 122,734 | ||||||
590,234 | ||||||||
Health Care Providers & Services – 6.0% | ||||||||
AHP Health Partners, Inc. |
| |||||||
9.75%, 7/15/2026(a) | 80,000 | 87,100 | ||||||
Centene Corp. |
| |||||||
4.75%, 1/15/2025 | 100,000 | 101,700 | ||||||
Encompass Health Corp. |
| |||||||
5.13%, 3/15/2023 | 150,000 | 152,437 | ||||||
Envision Healthcare Corp. |
| |||||||
8.75%, 10/15/2026(a) | 200,000 | 189,000 |
Investments | Principal Amount | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
HCA, Inc. |
| |||||||
5.88%, 5/1/2023 | $ | 200,000 | $ | 215,020 | ||||
7.69%, 6/15/2025 | 250,000 | 286,250 | ||||||
MPH Acquisition Holdings LLC |
| |||||||
7.13%, 6/1/2024(a) | 240,000 | 241,848 | ||||||
One Call Corp. |
| |||||||
10.00%, 10/1/2024(a) | 160,000 | 143,600 | ||||||
RegionalCare Hospital Partners Holdings, Inc. | ||||||||
9.75%, 12/1/2026(a) | 125,000 | 130,781 | ||||||
Team Health Holdings, Inc. |
| |||||||
6.38%, 2/1/2025(a) | 240,000 | 205,200 | ||||||
Tenet Healthcare Corp. |
| |||||||
8.13%, 4/1/2022 | 400,000 | 428,284 | ||||||
WellCare Health Plans, Inc. |
| |||||||
5.25%, 4/1/2025 | 150,000 | 155,438 | ||||||
West Street Merger Sub, Inc. |
| |||||||
6.38%, 9/1/2025(a) | 160,000 | 155,600 | ||||||
2,492,258 | ||||||||
Hotels, Restaurants & Leisure – 4.4% | ||||||||
1011778 BC ULC |
| |||||||
5.00%, 10/15/2025(a) | 160,000 | 159,200 | ||||||
24 Hour Fitness Worldwide, Inc. |
| |||||||
8.00%, 6/1/2022(a) | 80,000 | 81,000 | ||||||
Carlson Travel, Inc. |
| |||||||
6.75%, 12/15/2023(a) | 200,000 | 203,000 | ||||||
Cirsa Finance International Sarl |
| |||||||
7.88%, 12/20/2023(a) | 160,000 | 166,411 | ||||||
Downstream Development Authority of the Quapaw Tribe of Oklahoma | ||||||||
10.50%, 2/15/2023(a) | 80,000 | 84,000 | ||||||
Enterprise Development Authority (The) |
| |||||||
12.00%, 7/15/2024(a) | 80,000 | 82,400 | ||||||
Golden Nugget, Inc. |
| |||||||
6.75%, 10/15/2024(a) | 240,000 | 246,000 | ||||||
Hilton Domestic Operating Co., Inc. |
| |||||||
4.25%, 9/1/2024 | 100,000 | 100,385 | ||||||
IRB Holding Corp. |
| |||||||
6.75%, 2/15/2026(a) | 80,000 | 79,600 | ||||||
MGM Resorts International |
| |||||||
6.00%, 3/15/2023 | 150,000 | 160,500 | ||||||
Mohegan Gaming & Entertainment |
| |||||||
7.88%, 10/15/2024(a) | 85,000 | 82,663 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 287 |
FlexShares® High Yield Value-Scored Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Six Flags Entertainment Corp. |
| |||||||
4.88%, 7/31/2024(a) | $ | 100,000 | $ | 100,250 | ||||
Viking Cruises Ltd. |
| |||||||
6.25%, 5/15/2025(a) | 160,000 | 166,400 | ||||||
Wynn Las Vegas LLC |
| |||||||
5.50%, 3/1/2025(a) | 130,000 | 131,950 | ||||||
1,843,759 | ||||||||
Household Durables – 1.8% | ||||||||
American Greetings Corp. |
| |||||||
8.75%, 4/15/2025(a) | 160,000 | 149,200 | ||||||
Brookfield Residential Properties, Inc. |
| |||||||
6.38%, 5/15/2025(a) | 160,000 | 157,600 | ||||||
Mattamy Group Corp. |
| |||||||
6.50%, 10/1/2025(a) | 160,000 | 163,600 | ||||||
Shea Homes LP |
| |||||||
5.88%, 4/1/2023(a) | 100,000 | 100,500 | ||||||
TRI Pointe Group, Inc. |
| |||||||
5.88%, 6/15/2024 | 160,000 | 162,533 | ||||||
733,433 | ||||||||
Household Products – 0.3% | ||||||||
Kronos Acquisition Holdings, Inc. |
| |||||||
9.00%, 8/15/2023(a) | 160,000 | 143,200 | ||||||
Independent Power and Renewable Electricity Producers – 1.5% | ||||||||
Calpine Corp. |
| |||||||
5.75%, 1/15/2025 | 200,000 | 198,500 | ||||||
NRG Energy, Inc. |
| |||||||
7.25%, 5/15/2026 | 160,000 | 174,800 | ||||||
Talen Energy Supply LLC |
| |||||||
10.50%, 1/15/2026(a) | 240,000 | 250,800 | ||||||
624,100 | ||||||||
Insurance – 2.3% | ||||||||
Acrisure LLC |
| |||||||
7.00%, 11/15/2025(a) | 250,000 | 227,500 | ||||||
AmWINS Group, Inc. |
| |||||||
7.75%, 7/1/2026(a) | 125,000 | 126,562 | ||||||
Ardonagh Midco 3 plc |
| |||||||
8.63%, 7/15/2023(a) | 160,000 | 135,600 | ||||||
AssuredPartners, Inc. |
| |||||||
7.00%, 8/15/2025(a) | 100,000 | 95,000 |
Investments | Principal Amount | Value | ||||||
Insurance – (continued) | ||||||||
Fidelity & Guaranty Life Holdings, Inc. |
| |||||||
5.50%, 5/1/2025(a) | $ | 30,000 | $ | 30,450 | ||||
HUB International Ltd. |
| |||||||
7.00%, 5/1/2026(a) | 130,000 | 131,463 | ||||||
NFP Corp. |
| |||||||
6.88%, 7/15/2025(a) | 130,000 | 128,375 | ||||||
USI, Inc. |
| |||||||
6.88%, 5/1/2025(a) | 80,000 | 79,900 | ||||||
954,850 | ||||||||
Interactive Media & Services – 0.9% | ||||||||
Rackspace Hosting, Inc. |
| |||||||
8.63%, 11/15/2024(a) | 400,000 | 374,000 | ||||||
IT Services – 1.6% | ||||||||
Banff Merger Sub, Inc. |
| |||||||
9.75%, 9/1/2026(a) | 240,000 | 241,200 | ||||||
VeriSign, Inc. |
| |||||||
4.63%, 5/1/2023 | 200,000 | 203,500 | ||||||
Zayo Group LLC |
| |||||||
6.00%, 4/1/2023 | 100,000 | 102,125 | ||||||
6.38%, 5/15/2025 | 100,000 | 102,125 | ||||||
648,950 | ||||||||
Machinery – 1.5% | ||||||||
Apex Tool Group LLC |
| |||||||
9.00%, 2/15/2023(a) | 80,000 | 78,900 | ||||||
Cloud Crane LLC |
| |||||||
10.13%, 8/1/2024(a) | 160,000 | 172,400 | ||||||
Grinding Media, Inc. |
| |||||||
7.38%, 12/15/2023(a) | 100,000 | 98,250 | ||||||
Novelis Corp. |
| |||||||
6.25%, 8/15/2024(a) | 160,000 | 167,000 | ||||||
Titan Acquisition Ltd. |
| |||||||
7.75%, 4/15/2026(a) | 130,000 | 119,925 | ||||||
636,475 | ||||||||
Marine – 0.4% | ||||||||
Stena AB |
| |||||||
7.00%, 2/1/2024(a) | 160,000 | 154,000 | ||||||
Media – 8.2% | ||||||||
AMC Networks, Inc. |
| |||||||
5.00%, 4/1/2024 | 100,000 | 101,500 |
See Accompanying Notes to the Financial Statements.
288 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® High Yield Value-Scored Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Media – (continued) | ||||||||
Clear Channel Worldwide Holdings, Inc. | ||||||||
9.25%, 2/15/2024(a) | $ | 150,000 | $ | 161,813 | ||||
CSC Holdings LLC |
| |||||||
6.75%, 11/15/2021 | 200,000 | 214,500 | ||||||
DISH DBS Corp. |
| |||||||
6.75%, 6/1/2021 | 210,000 | 217,074 | ||||||
5.88%, 7/15/2022 | 200,000 | 195,890 | ||||||
5.00%, 3/15/2023 | 225,000 | 207,000 | ||||||
7.75%, 7/1/2026 | 200,000 | 179,500 | ||||||
Entercom Media Corp. |
| |||||||
7.25%, 11/1/2024(a) | 85,000 | 88,400 | ||||||
Lamar Media Corp. |
| |||||||
5.38%, 1/15/2024 | 200,000 | 205,750 | ||||||
McGraw-Hill Global Education Holdings LLC | ||||||||
7.88%, 5/15/2024(a) | 35,000 | 30,056 | ||||||
MDC Partners, Inc. |
| |||||||
6.50%, 5/1/2024(a) | 160,000 | 136,000 | ||||||
Meredith Corp. |
| |||||||
6.88%, 2/1/2026 | 210,000 | 219,450 | ||||||
Nexstar Broadcasting, Inc. |
| |||||||
5.63%, 8/1/2024(a) | 105,000 | 106,859 | ||||||
Outfront Media Capital LLC |
| |||||||
5.25%, 2/15/2022 | 100,000 | 101,625 | ||||||
Radiate Holdco LLC |
| |||||||
6.63%, 2/15/2025(a) | 160,000 | 158,000 | ||||||
Sinclair Television Group, Inc. |
| |||||||
5.38%, 4/1/2021 | 100,000 | 100,250 | ||||||
Sirius XM Radio, Inc. |
| |||||||
5.38%, 4/15/2025(a) | 275,000 | 282,906 | ||||||
Univision Communications, Inc. |
| |||||||
5.13%, 5/15/2023(a) | 85,000 | 82,450 | ||||||
5.13%, 2/15/2025(a) | 140,000 | 132,125 | ||||||
UPC Holding BV |
| |||||||
5.50%, 1/15/2028(a) | 160,000 | 162,000 | ||||||
Videotron Ltd. |
| |||||||
5.00%, 7/15/2022 | 200,000 | 208,906 | ||||||
Ziggo BV |
| |||||||
5.50%, 1/15/2027(a) | 130,000 | 130,325 | ||||||
3,422,379 | ||||||||
Metals & Mining – 2.0% | ||||||||
Baffinland Iron Mines Corp. |
| |||||||
8.75%, 7/15/2026(a) | 100,000 | 101,375 |
Investments | Principal Amount | Value | ||||||
Metals & Mining – (continued) | ||||||||
Commercial Metals Co. |
| |||||||
5.75%, 4/15/2026 | $ | 30,000 | $ | 30,375 | ||||
FMG Resources August 2006 Pty. Ltd. | ||||||||
4.75%, 5/15/2022(a) | 80,000 | 81,000 | ||||||
Freeport-McMoRan, Inc. |
| |||||||
5.45%, 3/15/2043 | 65,000 | 58,987 | ||||||
Northwest Acquisitions ULC |
| |||||||
7.13%, 11/1/2022(a) | 55,000 | 46,338 | ||||||
SunCoke Energy Partners LP |
| |||||||
7.50%, 6/15/2025(a) | 160,000 | 162,000 | ||||||
United States Steel Corp. |
| |||||||
6.88%, 8/15/2025 | 175,000 | 165,095 | ||||||
Warrior Met Coal, Inc. |
| |||||||
8.00%, 11/1/2024(a) | 160,000 | 167,700 | ||||||
812,870 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.2% | ||||||||
Starwood Property Trust, Inc. |
| |||||||
5.00%, 12/15/2021 | 78,000 | 79,853 | ||||||
Multiline Retail – 0.2% | ||||||||
Neiman Marcus Group Ltd. LLC |
| |||||||
8.00%, 10/15/2021(a) | 160,000 | 89,600 | ||||||
Oil, Gas & Consumable Fuels – 9.9% | ||||||||
Alliance Resource Operating Partners LP | ||||||||
7.50%, 5/1/2025(a) | 50,000 | 52,625 | ||||||
Berry Petroleum Co. LLC |
| |||||||
7.00%, 2/15/2026(a) | 80,000 | 78,900 | ||||||
Calumet Specialty Products Partners LP |
| |||||||
7.63%, 1/15/2022 | 80,000 | 74,600 | ||||||
Cheniere Energy Partners LP |
| |||||||
5.25%, 10/1/2025 | 100,000 | 102,375 | ||||||
Chesapeake Energy Corp. |
| |||||||
8.00%, 1/15/2025 | 240,000 | 244,200 | ||||||
CNX Resources Corp. |
| |||||||
5.88%, 4/15/2022 | 100,000 | 100,000 | ||||||
Comstock Resources, Inc. |
| |||||||
9.75%, 8/15/2026(a) | 100,000 | 91,500 | ||||||
Covey Park Energy LLC |
| |||||||
7.50%, 5/15/2025(a) | 130,000 | 121,550 | ||||||
DCP Midstream LP |
| |||||||
Series A, 7.38%, 12/15/2022(b) (c) | 100,000 | 98,671 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 289 |
FlexShares® High Yield Value-Scored Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Denbury Resources, Inc. |
| |||||||
9.00%, 5/15/2021(a) | $ | 150,000 | $ | 153,000 | ||||
Energy Transfer Operating LP |
| |||||||
Series A, 6.25%, 2/15/2023(b) (c) | 160,000 | 152,526 | ||||||
EnLink Midstream Partners LP |
| |||||||
5.05%, 4/1/2045 | 100,000 | 86,500 | ||||||
Extraction Oil & Gas, Inc. |
| |||||||
7.38%, 5/15/2024(a) | 150,000 | 135,750 | ||||||
Foresight Energy LLC |
| |||||||
11.50%, 4/1/2023(a) | 80,000 | 62,400 | ||||||
Genesis Energy LP |
| |||||||
6.75%, 8/1/2022 | 270,000 | 274,849 | ||||||
6.25%, 5/15/2026 | 150,000 | 149,250 | ||||||
Gulfport Energy Corp. |
| |||||||
6.38%, 1/15/2026 | 160,000 | 138,800 | ||||||
Indigo Natural Resources LLC |
| |||||||
6.88%, 2/15/2026(a) | 210,000 | 195,825 | ||||||
Jonah Energy LLC |
| |||||||
7.25%, 10/15/2025(a) | 160,000 | 96,400 | ||||||
MEG Energy Corp. |
| |||||||
7.00%, 3/31/2024(a) | 320,000 | 304,701 | ||||||
Montage Resources Corp. |
| |||||||
8.88%, 7/15/2023 | 160,000 | 154,000 | ||||||
NGL Energy Partners LP |
| |||||||
7.50%, 11/1/2023 | 80,000 | 83,584 | ||||||
Oasis Petroleum, Inc. |
| |||||||
6.88%, 3/15/2022 | 100,000 | 100,625 | ||||||
PBF Holding Co. LLC |
| |||||||
7.25%, 6/15/2025 | 100,000 | 103,375 | ||||||
Peabody Energy Corp. |
| |||||||
6.38%, 3/31/2025(a) | 75,000 | 74,625 | ||||||
Range Resources Corp. |
| |||||||
5.00%, 3/15/2023 | 100,000 | 97,663 | ||||||
Sable Permian Resources Land LLC |
| |||||||
7.38%, 11/1/2021(a) | 160,000 | 40,000 | ||||||
SemGroup Corp. |
| |||||||
5.63%, 11/15/2023 | 160,000 | 152,800 | ||||||
Southwestern Energy Co. |
| |||||||
6.20%, 1/23/2025(d) | 160,000 | 158,101 | ||||||
Sunoco LP |
| |||||||
4.88%, 1/15/2023 | 100,000 | 101,875 |
Investments | Principal Amount | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Vine Oil & Gas LP |
| |||||||
9.75%, 4/15/2023(a) | $ | 150,000 | $ | 118,500 | ||||
W&T Offshore, Inc. |
| |||||||
9.75%, 11/1/2023(a) | 100,000 | 102,250 | ||||||
Whiting Petroleum Corp. |
| |||||||
6.63%, 1/15/2026 | 100,000 | 100,095 | ||||||
4,101,915 | ||||||||
Paper & Forest Products – 0.3% | ||||||||
Clearwater Paper Corp. |
| |||||||
5.38%, 2/1/2025(a) | 130,000 | 119,600 | ||||||
Personal Products – 0.7% | ||||||||
Avon Products, Inc. |
| |||||||
7.00%, 3/15/2023(d) | 160,000 | 160,400 | ||||||
Revlon Consumer Products Corp. |
| |||||||
5.75%, 2/15/2021(d) | 160,000 | 144,800 | ||||||
305,200 | ||||||||
Pharmaceuticals – 1.3% | ||||||||
Bausch Health Cos., Inc. |
| |||||||
6.13%, 4/15/2025(a) | 450,000 | 456,187 | ||||||
Par Pharmaceutical, Inc. |
| |||||||
7.50%, 4/1/2027(a) | 100,000 | 103,980 | ||||||
560,167 | ||||||||
Real Estate Management & Development – 2.0% | ||||||||
Five Point Operating Co. LP |
| |||||||
7.88%, 11/15/2025(a) | 160,000 | 160,000 | ||||||
Forestar Group, Inc. |
| |||||||
8.00%, 4/15/2024(a) | 100,000 | 103,000 | ||||||
Howard Hughes Corp. (The) |
| |||||||
5.38%, 3/15/2025(a) | 160,000 | 162,153 | ||||||
Hunt Cos., Inc. |
| |||||||
6.25%, 2/15/2026(a) | 80,000 | 75,400 | ||||||
Kennedy-Wilson, Inc. |
| |||||||
5.88%, 4/1/2024 | 190,000 | 192,850 | ||||||
Realogy Group LLC |
| |||||||
4.88%, 6/1/2023(a) | 160,000 | 153,354 | ||||||
846,757 | ||||||||
Road & Rail – 0.2% | ||||||||
Neovia Logistics Services LLC |
| |||||||
8.88%, 8/1/2020(a) | 80,000 | 80,648 |
See Accompanying Notes to the Financial Statements.
290 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® High Yield Value-Scored Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – 0.4% | ||||||||
Sensata Technologies UK Financing Co. plc | ||||||||
6.25%, 2/15/2026(a) | $ | 160,000 | $ | 169,800 | ||||
Software – 1.6% | ||||||||
Change Healthcare Holdings LLC |
| |||||||
5.75%, 3/1/2025(a) | 80,000 | 79,600 | ||||||
j2 Cloud Services LLC |
| |||||||
6.00%, 7/15/2025(a) | 130,000 | 136,012 | ||||||
Open Text Corp. |
| |||||||
5.88%, 6/1/2026(a) | 100,000 | 105,000 | ||||||
SS&C Technologies, Inc. |
| |||||||
5.50%, 9/30/2027(a) | 50,000 | 51,375 | ||||||
Symantec Corp. |
| |||||||
5.00%, 4/15/2025(a) | 100,000 | 102,049 | ||||||
Veritas US, Inc. |
| |||||||
10.50%, 2/1/2024(a) | 190,000 | 174,325 | ||||||
648,361 | ||||||||
Specialty Retail – 2.9% | ||||||||
Guitar Center Escrow Issuer, Inc. |
| |||||||
9.50%, 10/15/2021(a) | 160,000 | 156,200 | ||||||
J. Crew Brand LLC |
| |||||||
13.00%, 9/15/2021(a) | 80,000 | 85,200 | ||||||
KGA Escrow LLC |
| |||||||
7.50%, 8/15/2023(a) | 55,000 | 56,994 | ||||||
L Brands, Inc. |
| |||||||
5.63%, 2/15/2022 | 90,000 | 93,712 | ||||||
Penske Automotive Group, Inc. |
| |||||||
5.50%, 5/15/2026 | 160,000 | 160,200 | ||||||
PetSmart, Inc. |
| |||||||
5.88%, 6/1/2025(a) | 100,000 | 91,125 | ||||||
8.88%, 6/1/2025(a) | 400,000 | 357,500 | ||||||
Staples, Inc. |
| |||||||
10.75%, 4/15/2027(a) | 200,000 | 203,750 | ||||||
1,204,681 | ||||||||
Technology Hardware, Storage & Peripherals – 0.8% | ||||||||
NCR Corp. |
| |||||||
5.00%, 7/15/2022 | 160,000 | 161,000 | ||||||
Western Digital Corp. |
| |||||||
4.75%, 2/15/2026 | 80,000 | 77,400 |
Investments | Principal Amount | Value | ||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Xerox Corp. |
| |||||||
3.80%, 5/15/2024 | $ | 100,000 | $ | 96,400 | ||||
334,800 | ||||||||
Thrifts & Mortgage Finance – 0.5% | ||||||||
Provident Funding Associates LP |
| |||||||
6.38%, 6/15/2025(a) | 30,000 | 28,200 | ||||||
Quicken Loans, Inc. |
| |||||||
5.75%, 5/1/2025(a) | 160,000 | 163,200 | ||||||
191,400 | ||||||||
Tobacco – 0.3% | ||||||||
Vector Group Ltd. |
| |||||||
6.13%, 2/1/2025(a) | 160,000 | 144,400 | ||||||
Trading Companies & Distributors – 0.3% | ||||||||
Ahern Rentals, Inc. |
| |||||||
7.38%, 5/15/2023(a) | 130,000 | 116,350 | ||||||
Wireless Telecommunication Services – 4.5% | ||||||||
C&W Senior Financing DAC |
| |||||||
7.50%, 10/15/2026(a) | 200,000 | 208,000 | ||||||
Hughes Satellite Systems Corp. |
| |||||||
6.63%, 8/1/2026 | 200,000 | 202,750 | ||||||
Intelsat Connect Finance SA |
| |||||||
9.50%, 2/15/2023(a) | 220,000 | 205,150 | ||||||
Sprint Communications, Inc. |
| |||||||
11.50%, 11/15/2021 | 400,000 | 462,000 | ||||||
Sprint Corp. |
| |||||||
7.88%, 9/15/2023 | 200,000 | 208,840 | ||||||
T-Mobile USA, Inc. |
| |||||||
6.50%, 1/15/2026 | 320,000 | 343,104 | ||||||
Wind Tre SpA |
| |||||||
5.00%, 1/20/2026(a) | 285,000 | 261,844 | ||||||
1,891,688 | ||||||||
Total Corporate Bonds (Cost $40,722,408) |
| 40,293,639 | ||||||
Total Investments – 96.8% (Cost $40,722,408) |
| 40,293,639 | ||||||
Other Assets Less Liabilities – 3.2% |
| 1,333,685 | ||||||
NET ASSETS – 100.0% |
| $ | 41,627,324 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 291 |
FlexShares® High Yield Value-Scored Bond Index Fund (cont.)
(a) | Securities exempt from registration under Rule 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) | Perpetual security. The rate reflected was the rate in effect on April 30, 2019. The maturity date reflects the next call date. |
(c) | Security issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the rate in effect as of period end. |
(d) | Step bond. Interest 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 April 30, 2019. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 627,145 | ||
Aggregate gross unrealized depreciation | (1,055,914 | ) | ||
Net unrealized depreciation | $ | (428,769 | ) | |
Federal income tax cost | $ | 40,722,408 |
See Accompanying Notes to the Financial Statements.
292 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Ready Access Variable Income Fund
April 30, 2019 (Unaudited)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – 87.4% | ||||||||
Aerospace & Defense – 2.2% | ||||||||
Boeing Co. (The) | $ | 827,000 | $ | 935,136 | ||||
Lockheed Martin Corp. | 534,000 | 538,292 | ||||||
Northrop Grumman Corp. | 1,000,000 | 991,763 | ||||||
3.50%, 3/15/2021 | 204,000 | 206,809 | ||||||
Rockwell Collins, Inc. | 1,726,000 | 1,723,188 | ||||||
Spirit AeroSystems, Inc. | 711,000 | 710,266 | ||||||
United Technologies Corp. | 466,000 | 466,549 | ||||||
5,572,003 | ||||||||
Air Freight & Logistics – 0.5% | ||||||||
FedEx Corp. |
| |||||||
2.30%, 2/1/2020 | 1,393,000 | 1,387,999 | ||||||
Airlines – 0.5% | ||||||||
Southwest Airlines Co. |
| |||||||
2.75%, 11/6/2019 | 225,000 | 224,987 | ||||||
2.65%, 11/5/2020 | 1,060,000 | 1,058,588 | ||||||
1,283,575 | ||||||||
Asset Management & Custody Banks – 0.4% | ||||||||
Ameriprise Financial, Inc. |
| |||||||
3.00%, 3/22/2022 | 900,000 | 903,774 | ||||||
Automobile Manufacturers – 3.4% | ||||||||
Daimler Finance North America LLC | ||||||||
(ICE LIBOR USD | 1,500,000 | 1,499,350 | ||||||
(ICE LIBOR USD | 92,000 | 92,090 |
Investments | Principal Amount | Value | ||||||
Automobile Manufacturers – (continued) | ||||||||
(ICE LIBOR USD | $ | 1,650,000 | $ | 1,647,560 | ||||
Nissan Motor Acceptance Corp. | ||||||||
(ICE LIBOR USD | 762,000 | 757,524 | ||||||
Volkswagen Group of America Finance LLC | ||||||||
2.13%, 5/23/2019(b) | 500,000 | 499,816 | ||||||
2.45%, 11/20/2019(b) | 640,000 | 638,732 | ||||||
(ICE LIBOR USD | 3,500,000 | 3,513,503 | ||||||
8,648,575 | ||||||||
Automotive Retail – 1.1% | ||||||||
AutoZone, Inc. |
| |||||||
4.00%, 11/15/2020 | 850,000 | 864,670 | ||||||
3.70%, 4/15/2022 | 2,000,000 | 2,041,888 | ||||||
2,906,558 | ||||||||
Biotechnology – 2.8% | ||||||||
AbbVie, Inc. |
| |||||||
2.50%, 5/14/2020 | 770,000 | 767,660 | ||||||
Amgen, Inc. |
| |||||||
(ICE LIBOR USD | 792,000 | 792,083 | ||||||
2.20%, 5/22/2019 | 1,346,000 | 1,345,742 | ||||||
Gilead Sciences, Inc. |
| |||||||
1.85%, 9/20/2019 | 342,000 | 340,902 | ||||||
(ICE LIBOR USD | 82,000 | 82,064 | ||||||
2.35%, 2/1/2020 | 3,730,000 | 3,719,779 | ||||||
7,048,230 | ||||||||
Broadcasting – 0.1% | ||||||||
Fox Corp. |
| |||||||
3.67%, 1/25/2022(b) | 300,000 | 306,403 | ||||||
Cable & Satellite – 0.6% | ||||||||
Comcast Corp. |
| |||||||
5.15%, 3/1/2020 | 1,550,000 | 1,581,546 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 293 |
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Consumer Finance – 7.8% | ||||||||
American Express Co. |
| |||||||
(ICE LIBOR USD | $ | 62,000 | $ | 62,287 | ||||
American Express Credit Corp. |
| |||||||
(ICE LIBOR USD | 414,000 | 414,515 | ||||||
(ICE LIBOR USD | 913,000 | 914,829 | ||||||
2.38%, 5/26/2020 | 10,000 | 9,967 | ||||||
(ICE LIBOR USD | 975,000 | 980,124 | ||||||
Series F, (ICE LIBOR USD | 750,000 | 758,430 | ||||||
American Honda Finance Corp. | ||||||||
2.00%, 11/13/2019 | 1,150,000 | 1,146,591 | ||||||
(ICE LIBOR USD 3 Month + 0.26%), 2.87%, 6/16/2020(a) | 302,000 | 302,608 | ||||||
(ICE LIBOR USD 3 Month + 0.27%), 2.86%, 7/20/2020(a) | 209,000 | 209,304 | ||||||
Capital One Financial Corp. |
| |||||||
(ICE LIBOR USD 3 Month + 0.95%), 3.55%, 3/9/2022(a) | 235,000 | 237,021 | ||||||
Caterpillar Financial Services Corp. | ||||||||
(ICE LIBOR USD 3 Month + 0.28%), 2.89%, 9/7/2021(a) | 2,091,000 | 2,091,869 | ||||||
Ford Motor Credit Co. LLC |
| |||||||
1.90%, 8/12/2019 | 250,000 | 249,213 | ||||||
General Motors Financial Co., Inc. | ||||||||
2.40%, 5/9/2019 | 585,000 | 584,972 | ||||||
3.15%, 1/15/2020 | 1,417,000 | 1,419,747 | ||||||
2.45%, 11/6/2020 | 751,000 | 744,338 | ||||||
John Deere Capital Corp. |
| |||||||
(ICE LIBOR USD 3 Month + 0.18%), 2.77%, 1/7/2020(a) | 532,000 | 532,573 |
Investments | Principal Amount | Value | ||||||
Consumer Finance – (continued) | ||||||||
(ICE LIBOR USD 3 Month + 0.30%), 2.91%, 3/13/2020(a) | $ | 228,000 | $ | 228,516 | ||||
(ICE LIBOR USD 3 Month + 0.29%), 2.90%, 6/22/2020(a) | 596,000 | 598,129 | ||||||
(ICE LIBOR USD 3 Month + 0.17%), 2.76%, 10/9/2020(a) | 690,000 | 690,395 | ||||||
(ICE LIBOR USD 3 Month + 0.26%), 2.86%, 9/10/2021(a) | 1,554,000 | 1,554,434 | ||||||
PACCAR Financial Corp. |
| |||||||
(ICE LIBOR USD 3 Month + 0.26%), 2.96%, 5/10/2021(a) | 1,664,000 | 1,666,286 | ||||||
Toyota Motor Credit Corp. |
| |||||||
(ICE LIBOR USD 3 Month + 0.26%), 2.85%, 4/17/2020(a) | 776,000 | 777,521 | ||||||
(ICE LIBOR USD 3 Month + 0.17%), 2.78%, 9/18/2020(a) | 500,000 | 500,423 | ||||||
(ICE LIBOR USD 3 Month + 0.15%), 2.75%, 10/9/2020(a) | 3,000,000 | 3,002,595 | ||||||
19,676,687 | ||||||||
Distillers & Vintners – 0.1% | ||||||||
Diageo Capital plc |
| |||||||
(ICE LIBOR USD 3 Month + 0.24%), 2.92%, 5/18/2020(a) | 300,000 | 300,345 | ||||||
Diversified Banks – 24.2% | ||||||||
Bank of America Corp. |
| |||||||
(ICE LIBOR USD 3 Month + 0.38%), 2.97%, 1/23/2022(a) | 1,742,000 | 1,740,336 | ||||||
Bank of Montreal |
| |||||||
1.75%, 9/11/2019 | 1,785,000 | 1,779,524 | ||||||
2.90%, 3/26/2022 | 1,500,000 | 1,503,318 | ||||||
Bank of Nova Scotia (The) |
| |||||||
1.65%, 6/14/2019 | 2,581,000 | 2,578,090 |
See Accompanying Notes to the Financial Statements.
294 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Diversified Banks – (continued) | ||||||||
(ICE LIBOR USD 3 Month + 0.29%), 2.88%, 1/8/2021(a) | $ | 670,000 | $ | 671,045 | ||||
(ICE LIBOR USD 3 Month + 0.42%), 3.00%, 1/25/2021(a) | 1,000,000 | 1,002,949 | ||||||
Barclays Bank plc |
| |||||||
(ICE LIBOR USD 3 Month + 0.65%), 3.39%, 8/7/2020(a) | 144,000 | 144,216 | ||||||
BNP Paribas SA |
| |||||||
5.00%, 1/15/2021 | 1,000,000 | 1,037,296 | ||||||
Citibank NA |
| |||||||
(SOFR + 0.60%), 3.08%, 3/13/2021(a) | 1,000,000 | 1,002,788 | ||||||
(ICE LIBOR USD 3 Month + 0.57%), 3.16%, 7/23/2021(a) | 900,000 | 904,318 | ||||||
3.16%, 2/19/2022(c) | 2,000,000 | 2,009,851 | ||||||
Citigroup, Inc. |
| |||||||
2.50%, 7/29/2019 | 766,000 | 765,752 | ||||||
2.65%, 10/26/2020 | 560,000 | 559,373 | ||||||
Commonwealth Bank of Australia | ||||||||
2.30%, 9/6/2019 | 300,000 | 299,676 | ||||||
Cooperatieve Rabobank UA |
| |||||||
(ICE LIBOR USD 3 Month + 0.43%), 3.02%, 4/26/2021(a) | 520,000 | 521,777 | ||||||
Credit Agricole SA |
| |||||||
(ICE LIBOR USD 3 Month + 1.02%), 3.60%, 4/24/2023(a) (b) | 100,000 | 99,767 | ||||||
DBS Group Holdings Ltd. |
| |||||||
(ICE LIBOR USD 3 Month + 0.49%), 3.08%, 6/8/2020(a) (b) | 100,000 | 100,174 | ||||||
2.85%, 4/16/2022(b) | 1,200,000 | 1,204,159 | ||||||
HSBC Holdings plc |
| |||||||
(ICE LIBOR USD 3 Month + 0.60%), 3.28%, 5/18/2021(a) | 1,605,000 | 1,607,762 |
Investments | Principal Amount | Value | ||||||
Diversified Banks – (continued) | ||||||||
(ICE LIBOR USD 3 Month + 0.65%), 3.25%, 9/11/2021(a) | $ | 2,000,000 | $ | 2,003,923 | ||||
HSBC USA, Inc. |
| |||||||
2.38%, 11/13/2019 | 897,000 | 895,421 | ||||||
JPMorgan Chase & Co. |
| |||||||
(ICE LIBOR USD 3 Month + 0.68%), 3.31%, 6/1/2021(a) | 504,000 | 506,325 | ||||||
JPMorgan Chase Bank NA |
| |||||||
(SOFR + 0.55%), 3.03%, 10/19/2020(a) | 3,000,000 | 3,001,893 | ||||||
(ICE LIBOR USD 3 Month + 0.29%), 3.03%, 2/1/2021(a) | 1,105,000 | 1,105,601 | ||||||
(ICE LIBOR USD 3 Month + 0.37%), 3.05%, 2/19/2021(a) | 500,000 | 500,716 | ||||||
Lloyds Bank plc |
| |||||||
(ICE LIBOR USD 3 Month + 0.49%), 3.23%, 5/7/2021(a) | 1,038,000 | 1,038,993 | ||||||
Mitsubishi UFJ Financial Group, Inc. | ||||||||
(ICE LIBOR USD 3 Month + 0.65%), 3.24%, 7/26/2021(a) | 695,000 | 698,715 | ||||||
3.22%, 3/7/2022 | 1,200,000 | 1,211,740 | ||||||
National Australia Bank Ltd. |
| |||||||
1.38%, 7/12/2019 | 250,000 | 249,425 | ||||||
2.25%, 1/10/2020 | 1,000,000 | 997,247 | ||||||
1.88%, 7/12/2021 | 1,000,000 | 982,100 | ||||||
(ICE LIBOR USD 3 Month + 0.71%), 3.45%, 11/4/2021(a) (b) | 2,000,000 | 2,013,865 | ||||||
Nordea Bank AB |
| |||||||
(ICE LIBOR USD 3 Month + 0.94%), 3.57%, 8/30/2023(a) (b) | 600,000 | 592,721 | ||||||
Nordea Bank Abp |
| |||||||
2.13%, 5/29/2020(b) | 1,000,000 | 993,624 | ||||||
Royal Bank of Canada |
| |||||||
(ICE LIBOR USD 3 Month + 0.38%), 3.00%, 3/2/2020(a) | 2,854,000 | 2,862,708 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 295 |
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Diversified Banks – (continued) | ||||||||
(ICE LIBOR USD 3 Month + 0.47%), 3.05%, 4/29/2022(a) | $ | 2,600,000 | $ | 2,602,899 | ||||
Santander UK plc |
| |||||||
2.35%, 9/10/2019 | 596,000 | 595,337 | ||||||
(ICE LIBOR USD 3 Month + 0.62%), 3.25%, 6/1/2021(a) | 1,900,000 | 1,903,311 | ||||||
Skandinaviska Enskilda Banken AB | ||||||||
(ICE LIBOR USD 3 Month + 0.43%), 3.11%, 5/17/2021(a) (b) | 1,110,000 | 1,112,601 | ||||||
Sumitomo Mitsui Banking Corp. |
| |||||||
2.45%, 1/16/2020 | 1,300,000 | 1,297,828 | ||||||
Svenska Handelsbanken AB |
| |||||||
(ICE LIBOR USD 3 Month + 0.47%), 3.12%, 5/24/2021(a) | 2,250,000 | 2,260,037 | ||||||
3.35%, 5/24/2021 | 1,705,000 | 1,725,000 | ||||||
Toronto-Dominion Bank (The) |
| |||||||
(ICE LIBOR USD 3 Month + 0.26%), 2.87%, 9/17/2020(a) | 251,000 | 251,618 | ||||||
US Bank NA |
| |||||||
(ICE LIBOR USD 3 Month + 0.13%), 2.71%, 1/17/2020(a) | 750,000 | 750,400 | ||||||
2.35%, 1/23/2020 | 1,375,000 | 1,372,839 | ||||||
2.00%, 1/24/2020 | 740,000 | 736,895 | ||||||
(ICE LIBOR USD 3 Month + 0.31%), 3.05%, 2/4/2021(a) | 1,500,000 | 1,505,105 | ||||||
Wells Fargo & Co. |
| |||||||
Series N, 2.15%, 1/30/2020 | 12,000 | 11,953 | ||||||
Wells Fargo Bank NA |
| |||||||
1.75%, 5/24/2019 | 1,800,000 | 1,799,081 | ||||||
2.40%, 1/15/2020 | 650,000 | 648,817 | ||||||
(SOFR + 0.48%), 2.96%, 3/25/2020(a) | 500,000 | 501,078 | ||||||
(ICE LIBOR USD 3 Month + 0.50%), 3.09%, 7/23/2021(a) | 2,400,000 | 2,405,688 |
Investments | Principal Amount | Value | ||||||
Diversified Banks – (continued) | ||||||||
Westpac Banking Corp. |
| |||||||
1.65%, 5/13/2019 | $ | 229,000 | $ | 228,937 | ||||
(ICE LIBOR USD 3 Month + 0.43%), 3.04%, 3/6/2020(a) | 273,000 | 273,856 | ||||||
(ICE LIBOR USD 3 Month + 0.28%), 2.96%, 5/15/2020(a) | 194,000 | 194,439 | ||||||
61,364,907 | ||||||||
Diversified Capital Markets – 1.7% | ||||||||
Credit Suisse AG |
| |||||||
2.30%, 5/28/2019 | 3,000,000 | 2,999,403 | ||||||
Macquarie Bank Ltd. |
| |||||||
2.40%, 1/21/2020(b) | 500,000 | 498,795 | ||||||
Macquarie Group Ltd. |
| |||||||
6.00%, 1/14/2020(b) | 800,000 | 817,651 | ||||||
4,315,849 | ||||||||
Diversified Chemicals – 0.1% | ||||||||
Eastman Chemical Co. |
| |||||||
2.70%, 1/15/2020 | 107,000 | 106,938 | ||||||
EI du Pont de Nemours & Co. |
| |||||||
(ICE LIBOR USD 3 Month + 0.53%), 3.27%, 5/1/2020(a) | 88,000 | 88,307 | ||||||
195,245 | ||||||||
Drug Retail – 0.6% | ||||||||
Walgreens Boots Alliance, Inc. |
| |||||||
2.70%, 11/18/2019 | 1,541,000 | 1,540,468 | ||||||
Electric Utilities – 0.9% | ||||||||
Duke Energy Corp. |
| |||||||
5.05%, 9/15/2019 | 1,232,000 | 1,241,373 | ||||||
NextEra Energy Capital Holdings, Inc. | ||||||||
2.90%, 4/1/2022 | 1,000,000 | 1,005,021 | ||||||
2,246,394 | ||||||||
Environmental & Facilities Services – 2.0% | ||||||||
Republic Services, Inc. |
| |||||||
5.50%, 9/15/2019 | 2,874,000 | 2,902,040 | ||||||
Waste Management, Inc. |
| |||||||
4.75%, 6/30/2020 | 2,000,000 | 2,047,631 | ||||||
4,949,671 |
See Accompanying Notes to the Financial Statements.
296 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Fertilizers & Agricultural Chemicals – 0.6% | ||||||||
Nutrien Ltd. |
| |||||||
6.50%, 5/15/2019 | $ | 1,539,000 | $ | 1,540,974 | ||||
Financial Exchanges & Data – 0.4% | ||||||||
Nasdaq, Inc. |
| |||||||
5.55%, 1/15/2020 | 1,066,000 | 1,086,849 | ||||||
General Merchandise Stores – 0.0%(d) | ||||||||
Dollar Tree, Inc. |
| |||||||
(ICE LIBOR USD 3 Month + 0.70%), 3.29%, 4/17/2020(a) | 120,000 | 120,010 | ||||||
Health Care Distributors – 0.8% | ||||||||
Cardinal Health, Inc. |
| |||||||
1.95%, 6/14/2019 | 1,272,000 | 1,270,752 | ||||||
McKesson Corp. |
| |||||||
3.65%, 11/30/2020 | 762,000 | 772,334 | ||||||
2,043,086 | ||||||||
Health Care REITs – 1.7% | ||||||||
HCP, Inc., REIT |
| |||||||
2.63%, 2/1/2020 | 2,250,000 | 2,245,402 | ||||||
Ventas Realty LP, REIT |
| |||||||
2.70%, 4/1/2020 | 1,993,000 | 1,991,837 | ||||||
4,237,239 | ||||||||
Health Care Services – 1.1% | ||||||||
CVS Health Corp. |
| |||||||
3.13%, 3/9/2020 | 500,000 | 501,267 | ||||||
(ICE LIBOR USD 3 Month + 0.63%), 3.23%, 3/9/2020(a) | 971,000 | 974,366 | ||||||
3.35%, 3/9/2021 | 1,245,000 | 1,254,274 | ||||||
2,729,907 | ||||||||
Home Improvement Retail – 0.7% | ||||||||
Home Depot, Inc. (The) |
| |||||||
2.00%, 6/15/2019 | 388,000 | 387,490 | ||||||
(ICE LIBOR USD 3 Month + 0.15%), 2.75%, 6/5/2020(a) | 762,000 | 763,335 |
Investments | Principal Amount | Value | ||||||
Home Improvement Retail – (continued) | ||||||||
Lowe’s Cos., Inc. |
| |||||||
(ICE LIBOR USD 3 Month + 0.42%), 3.02%, 9/10/2019(a) | $ | 593,000 | $ | 593,848 | ||||
1,744,673 | ||||||||
Homebuilding – 0.2% | ||||||||
DR Horton, Inc. |
| |||||||
2.55%, 12/1/2020 | 428,000 | 426,363 | ||||||
Hotels, Resorts & Cruise Lines – 1.1% | ||||||||
Marriott International, Inc. |
| |||||||
Series Y, (ICE LIBOR USD 3 Month + 0.60%), 3.23%, 12/1/2020(a) | 816,000 | 818,927 | ||||||
Series N, 3.13%, 10/15/2021 | 2,000,000 | 2,008,159 | ||||||
2,827,086 | ||||||||
Household Products – 1.0% | ||||||||
Church & Dwight Co., Inc. |
| |||||||
2.45%, 12/15/2019 | 410,000 | 408,916 | ||||||
Kimberly-Clark Corp. |
| |||||||
1.90%, 5/22/2019 | 465,000 | 464,836 | ||||||
Procter & Gamble Co. (The) |
| |||||||
1.90%, 11/1/2019 | 1,718,000 | 1,712,167 | ||||||
2,585,919 | ||||||||
Industrial Conglomerates – 1.5% | ||||||||
General Electric Co. |
| |||||||
5.50%, 1/8/2020 | 1,000,000 | 1,017,494 | ||||||
2.20%, 1/9/2020 | 500,000 | 497,095 | ||||||
5.55%, 5/4/2020 | 1,000,000 | 1,025,281 | ||||||
Honeywell International, Inc. |
| |||||||
1.40%, 10/30/2019 | 789,000 | 784,546 | ||||||
(ICE LIBOR USD 3 Month + 0.28%), 2.86%, 10/30/2019(a) | 388,000 | 388,543 | ||||||
3,712,959 | ||||||||
Integrated Oil & Gas – 0.1% | ||||||||
BP Capital Markets plc |
| |||||||
1.68%, 5/3/2019 | 327,000 | 326,991 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 297 |
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Integrated Telecommunication Services – 2.5% | ||||||||
AT&T, Inc. |
| |||||||
(ICE LIBOR USD 3 Month + 0.65%), 3.25%, 1/15/2020(a) | $ | 1,078,000 | $ | 1,081,827 | ||||
(ICE LIBOR USD 3 Month + 0.95%), 3.55%, 7/15/2021(a) | 2,286,000 | 2,312,199 | ||||||
Orange SA |
| |||||||
1.63%, 11/3/2019 | 1,271,000 | 1,263,863 | ||||||
Verizon Communications, Inc. |
| |||||||
(ICE LIBOR USD 3 Month + 0.55%), 3.21%, 5/22/2020(a) | 1,414,000 | 1,419,766 | ||||||
(ICE LIBOR USD 3 Month + 1.00%), 3.61%, 3/16/2022(a) | 320,000 | 326,215 | ||||||
6,403,870 | ||||||||
Internet & Direct Marketing Retail – 0.5% | ||||||||
eBay, Inc. |
| |||||||
2.20%, 8/1/2019 | 1,244,000 | 1,241,426 | ||||||
Investment Banking & Brokerage – 2.4% | ||||||||
Charles Schwab Corp. (The) |
| |||||||
(ICE LIBOR USD 3 Month + 0.32%), 2.96%, 5/21/2021(a) | 515,000 | 515,542 | ||||||
Goldman Sachs Bank USA |
| |||||||
3.20%, 6/5/2020 | 108,000 | 108,681 | ||||||
Goldman Sachs Group, Inc. (The) |
| |||||||
1.95%, 7/23/2019 | 292,000 | 291,535 | ||||||
2.55%, 10/23/2019 | 690,000 | 689,731 | ||||||
(ICE LIBOR USD 3 Month + 1.16%), 3.75%, 4/23/2020(a) | 1,000,000 | 1,008,262 | ||||||
Morgan Stanley |
| |||||||
7.30%, 5/13/2019 | 1,250,000 | 1,251,753 | ||||||
2.38%, 7/23/2019 | 358,000 | 357,763 | ||||||
5.63%, 9/23/2019 | 1,280,000 | 1,294,007 | ||||||
5.50%, 1/26/2020 | 430,000 | 438,594 | ||||||
(ICE LIBOR USD 3 Month + 0.55%), 3.25%, 2/10/2021(a) | 104,000 | 104,153 | ||||||
6,060,021 |
Investments | Principal Amount | Value | ||||||
Life & Health Insurance – 2.0% | ||||||||
Jackson National Life Global Funding |
| |||||||
(ICE LIBOR USD 3 Month + 0.30%), 2.90%, 10/15/2020(a) (b) | $ | 1,145,000 | $ | 1,144,597 | ||||
(ICE LIBOR USD 3 Month + 0.48%), 3.08%, 6/11/2021(a) (b) | 500,000 | 501,991 | ||||||
Prudential Financial, Inc. |
| |||||||
7.38%, 6/15/2019 | 255,000 | 256,343 | ||||||
4.50%, 11/15/2020 | 3,000,000 | 3,085,030 | ||||||
4,987,961 | ||||||||
Managed Health Care – 0.5% | ||||||||
Cigna Corp. |
| |||||||
3.20%, 9/17/2020(b) | 1,380,000 | 1,384,856 | ||||||
Multi-line Insurance – 1.0% | ||||||||
American International Group, Inc. |
| |||||||
2.30%, 7/16/2019 | 475,000 | 474,663 | ||||||
New York Life Global Funding |
| |||||||
(ICE LIBOR USD 3 Month + 0.28%), 2.86%, 1/28/2021(a) (b) | 2,000,000 | 2,005,781 | ||||||
2,480,444 | ||||||||
Multi-Sector Holdings – 0.1% | ||||||||
Berkshire Hathaway, Inc. |
| |||||||
2.10%, 8/14/2019 | 174,000 | 173,705 | ||||||
Oil & Gas Equipment & Services – 0.0%(d) | ||||||||
Schlumberger Finance Canada Ltd. |
| |||||||
2.20%, 11/20/2020(b) | 25,000 | 24,792 | ||||||
Oil & Gas Storage & Transportation – 0.1% | ||||||||
Enterprise Products Operating LLC |
| |||||||
5.25%, 1/31/2020 | 341,000 | 346,668 | ||||||
Other Diversified Financial Services – 1.0% | ||||||||
Kreditanstalt fuer Wiederaufbau |
| |||||||
2.38%, 3/24/2021 | 2,535,211 | 2,537,433 | ||||||
Siemens Financieringsmaatschappij NV |
| |||||||
(ICE LIBOR USD 3 Month + 0.34%), 2.95%, 3/16/2020(a) (b) | 45,000 | 45,127 | ||||||
2,582,560 |
See Accompanying Notes to the Financial Statements.
298 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Packaged Foods & Meats – 3.8% | ||||||||
Danone SA |
| |||||||
1.69%, 10/30/2019(b) | $ | 1,985,000 | $ | 1,973,018 | ||||
JM Smucker Co. (The) |
| |||||||
2.20%, 12/6/2019 | 2,337,000 | 2,329,779 | ||||||
Mondelez International Holdings Netherlands BV | ||||||||
1.63%, 10/28/2019(b) | 1,724,000 | 1,714,404 | ||||||
Tyson Foods, Inc. |
| |||||||
2.65%, 8/15/2019 | 716,000 | 716,331 | ||||||
(ICE LIBOR USD 3 Month + 0.55%), 3.17%, 6/2/2020(a) | 1,717,000 | 1,718,387 | ||||||
2.25%, 8/23/2021 | 1,210,000 | 1,197,192 | ||||||
9,649,111 | ||||||||
Pharmaceuticals – 1.3% | ||||||||
GlaxoSmithKline Capital plc |
| |||||||
(ICE LIBOR USD 3 Month + 0.35%), 3.04%, 5/14/2021(a) | 1,120,000 | 1,122,747 | ||||||
Roche Holdings, Inc. |
| |||||||
(ICE LIBOR USD 3 Month + 0.34%), | 250,000 | 250,310 | ||||||
Shire Acquisitions Investments Ireland DAC | ||||||||
1.90%, 9/23/2019 | 1,862,000 | 1,855,019 | ||||||
3,228,076 | ||||||||
Property & Casualty Insurance – 0.5% | ||||||||
Allstate Corp. (The) |
| |||||||
7.45%, 5/16/2019 | 209,000 | 209,386 | ||||||
(ICE LIBOR USD 3 Month + 0.43%), 3.03%, 3/29/2021(a) | 990,000 | 991,635 | ||||||
1,201,021 | ||||||||
Railroads – 1.9% | ||||||||
Burlington Northern Santa Fe LLC |
| |||||||
4.70%, 10/1/2019 | 194,000 | 195,599 | ||||||
Canadian National Railway Co. |
| |||||||
2.40%, 2/3/2020 | 1,000,000 | 997,580 |
Investments | Principal Amount | Value | ||||||
Railroads – (continued) | ||||||||
Canadian Pacific Railway Co. |
| |||||||
7.25%, 5/15/2019 | $ | 3,692,000 | $ | 3,697,843 | ||||
4,891,022 | ||||||||
Regional Banks – 9.1% | ||||||||
ABN AMRO Bank NV |
| |||||||
(ICE LIBOR USD 3 Month + 0.57%), 3.21%, 8/27/2021(a) (b) | 1,100,000 | 1,104,511 | ||||||
Branch Banking & Trust Co. |
| |||||||
1.45%, 5/10/2019 | 365,000 | 364,892 | ||||||
2.10%, 1/15/2020 | 1,000,000 | 996,005 | ||||||
Capital One NA |
| |||||||
1.85%, 9/13/2019 | 250,000 | 249,214 | ||||||
2.35%, 1/31/2020 | 600,000 | 598,089 | ||||||
Citizens Bank NA |
| |||||||
2.45%, 12/4/2019 | 2,921,000 | 2,916,521 | ||||||
(ICE LIBOR USD 3 Month + 0.72%), 3.41%, 2/14/2022(a) | 2,000,000 | 2,006,231 | ||||||
Discover Bank |
| |||||||
3.10%, 6/4/2020 | 2,250,000 | 2,256,632 | ||||||
Fifth Third Bank |
| |||||||
(ICE LIBOR USD 3 Month + 0.59%), 3.20%, 9/27/2019(a) | 200,000 | 200,345 | ||||||
(ICE LIBOR USD 3 Month + 0.25%), 2.83%, 10/30/2020(a) | 1,500,000 | 1,500,316 | ||||||
2.25%, 6/14/2021 | 460,000 | 455,877 | ||||||
KeyBank NA |
| |||||||
1.60%, 8/22/2019 | 1,825,000 | 1,819,430 | ||||||
Manufacturers & Traders Trust Co. |
| |||||||
2.25%, 7/25/2019 | 130,000 | 129,907 | ||||||
PNC Bank NA |
| |||||||
2.25%, 7/2/2019 | 2,500,000 | 2,498,363 | ||||||
1.45%, 7/29/2019 | 267,000 | 266,342 | ||||||
2.40%, 10/18/2019 | 850,000 | 849,372 | ||||||
(ICE LIBOR USD 3 Month + 0.36%), 3.04%, 5/19/2020(a) | 900,000 | 902,228 | ||||||
(ICE LIBOR USD 3 Month + 0.35%), 2.95%, 3/12/2021(a) | 3,000,000 | 3,005,262 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 299 |
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Regional Banks – (continued) | ||||||||
SunTrust Banks, Inc. |
| |||||||
2.50%, 5/1/2019 | $ | 1,000,000 | $ | 1,000,000 | ||||
23,119,537 | ||||||||
Specialty Chemicals – 0.5% | ||||||||
DowDuPont, Inc. |
| |||||||
(ICE LIBOR USD 3 Month + 0.71%), 3.39%, 11/15/2020(a) | 1,222,000 | 1,231,954 | ||||||
Systems Software – 0.0%(d) | ||||||||
Oracle Corp. |
| |||||||
2.25%, 10/8/2019 | 100,000 | 99,817 | ||||||
Technology Hardware, Storage & Peripherals – 0.6% | ||||||||
Dell International LLC |
| |||||||
4.42%, 6/15/2021(b) | 500,000 | 512,228 | ||||||
Hewlett Packard Enterprise Co. |
| |||||||
3.60%, 10/15/2020(e) | 1,000,000 | 1,009,646 | ||||||
1,521,874 | ||||||||
Trading Companies & Distributors – 0.7% | ||||||||
Aviation Capital Group LLC |
| |||||||
(ICE LIBOR USD 3 Month + 0.67%), 3.25%, 7/30/2021(a) (b) | 1,150,000 | 1,145,146 | ||||||
GATX Corp. |
| |||||||
2.50%, 7/30/2019 | 500,000 | 499,412 | ||||||
1,644,558 | ||||||||
Trucking – 0.7% | ||||||||
Penske Truck Leasing Co. LP |
| |||||||
3.05%, 1/9/2020(b) | 445,000 | 444,849 | ||||||
3.65%, 7/29/2021(b) | 600,000 | 608,046 | ||||||
Ryder System, Inc. |
| |||||||
2.55%, 6/1/2019 | 531,000 | 530,729 | ||||||
2.45%, 9/3/2019 | 92,000 | 91,885 | ||||||
1,675,509 | ||||||||
Total Corporate Bonds (Cost $221,085,004) |
| 221,559,067 | ||||||
Investments | Principal Amount | Value | ||||||
ASSET-BACKED SECURITIES – 8.1% | ||||||||
Americredit Automobile Receivables Trust | ||||||||
Series2018-1, Class A2A, 2.71%, 7/19/2021 | $ | 344,126 | $ | 344,142 | ||||
Carmax Auto Owner Trust |
| |||||||
Series2019-1, Class A2A, 3.02%, 7/15/2022 | 500,000 | 501,769 | ||||||
CarMax Auto Owner Trust |
| |||||||
Series2018-3, Class A2A, 2.88%, 10/15/2021 | 1,781,467 | 1,783,656 | ||||||
CNH Equipment Trust |
| |||||||
Series2018-A, Class A2, 2.78%, 8/16/2021 | 534,865 | 535,779 | ||||||
Dell Equipment Finance Trust |
| |||||||
Series2019-1, Class A2, 2.78%, 8/23/2021(b) | 920,000 | 922,611 | ||||||
Drive Auto Receivables Trust |
| |||||||
Series2019-1, Class A2A, 3.08%, 9/15/2021 | 750,000 | 751,244 | ||||||
Series2019-2, Class A2A, 2.93%, 3/15/2022 | 1,200,000 | 1,201,018 | ||||||
Ford Credit Floorplan Master Owner Trust A | ||||||||
Series2019-1, Class A, 2.84%, 3/15/2024 | 500,000 | 502,147 | ||||||
GM Financial Automobile Leasing Trust | ||||||||
Series2018-3, Class A2A, 2.89%, 9/21/2020 | 445,402 | 445,780 | ||||||
GM Financial Consumer Automobile Receivables Trust | ||||||||
Series2018-3, Class A2A, 2.74%, 7/16/2021 | 1,390,031 | 1,390,586 | ||||||
Series2019-1, Class A2, 2.99%, 3/16/2022 | 2,247,687 | 2,252,924 | ||||||
Honda Auto Receivables Owner Trust | ||||||||
Series2018-2, Class A2, 2.66%, 12/18/2020 | 2,088,842 | 2,089,337 | ||||||
Hyundai Auto Receivables Trust |
| |||||||
Series2017-A, Class A3, 1.76%, 8/16/2021 | 1,024,691 | 1,020,828 |
See Accompanying Notes to the Financial Statements.
300 | FLEXSHARES SEMIANNUAL REPORT |
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
ASSET-BACKED SECURITIES – (continued) | ||||||||
Nissan Auto Receivables Owner Trust | ||||||||
Series2019-A, Class A2A, 2.82%, 1/18/2022 | $ | 2,500,000 | $ | 2,504,778 | ||||
Santander Drive Auto Receivables Trust | ||||||||
Series2018-4, Class A2, 2.73%, 3/15/2021 | 461,699 | 461,539 | ||||||
Series2019-1, Class A2A, 2.91%, 1/18/2022 | 1,000,000 | 1,001,171 | ||||||
Synchrony Card Funding LLC |
| |||||||
Series2019-A1, Class A, 2.95%, 3/17/2025 | 2,000,000 | 2,019,023 | ||||||
Volkswagen Auto Loan Enhanced Trust | ||||||||
Series2018-1, Class A2A, 2.81%, 7/20/2021 | 840,118 | 840,997 | ||||||
Total Asset-Backed Securities (Cost $20,518,527) |
| 20,569,329 | ||||||
U.S. TREASURY OBLIGATIONS – 1.1% | ||||||||
U.S. Treasury Notes |
| |||||||
1.50%, 11/30/2019 | 1,800,000 | 1,790,121 | ||||||
2.50%, 1/31/2021 | 1,000,000 | 1,003,008 | ||||||
Total U.S. Treasury Obligations (Cost $2,790,216) |
| 2,793,129 | ||||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.1% | ||||||||
Holmes Master Issuer plc |
| |||||||
Series2018-1A, Class A2, 2.96%, 10/15/2054(b) (f) | 354,286 | 354,039 | ||||||
SHORT-TERM INVESTMENTS – 2.5% | ||||||||
COMMERCIAL PAPER – 1.7% | ||||||||
AstraZeneca plc |
| |||||||
3.10%, 7/24/2019(g) (h) | 1,000,000 | 993,511 | ||||||
Nissan Motor Acceptance Corp. |
| |||||||
2.93%, 7/8/2019(g) (h) | 1,000,000 | 995,015 | ||||||
Walgreens Boots Alliance, Inc. |
| |||||||
3.16%, 6/10/2019(g) (h) | 800,000 | 797,531 |
Investments | Principal Amount | Value | ||||||
COMMERCIAL PAPER – (continued) | ||||||||
White Plains Capital Co. LLC |
| |||||||
3.09%, 5/17/2019(g) (h) | $ | 1,500,000 | $ | 1,498,126 | ||||
Total Commercial Paper (Cost $4,282,599) |
| 4,284,183 | ||||||
U.S. TREASURY OBLIGATIONS – 0.8% | ||||||||
U.S. Treasury Bills |
| |||||||
2.42%, 6/6/2019(h) | 1,200,000 | 1,197,150 | ||||||
2.49%, 9/5/2019(h) | 800,000 | 793,332 | ||||||
Total U.S. Treasury Obligations (Cost $1,990,165) |
| 1,990,482 | ||||||
Total Short-Term Investments (Cost $6,272,764) |
| 6,274,665 | ||||||
Total Investments – 99.2% (Cost $251,020,797) |
| 251,550,229 | ||||||
Other Assets Less Liabilities – 0.8% |
| 1,937,933 | ||||||
NET ASSETS – 100.0% |
| $ | 253,488,162 |
(a) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2019. |
(b) | Securities exempt from registration under Rule 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 issued at a fixed coupon rate, which converts to a variable rate at a future date. Rate shown is the rate in effect as of period end. |
(d) | Represents less than 0.05% of net assets. |
(e) | Step bond. Interest 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 April 30, 2019. |
(f) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. The interest rate shown was the current rate as of April 30, 2019. |
(g) | 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. |
(h) | The rate shown was the current yield as of April 30, 2019. |
Percentages shown are based on Net Assets.
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 301 |
FlexShares® Ready Access Variable Income Fund (cont.)
Abbreviations
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
REIT – Real Estate Investment Trust
SOFR – Secured Overnight Financing Rate
USD – US Dollar
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 571,409 | ||
Aggregate gross unrealized depreciation | (42,837 | ) | ||
Net unrealized appreciation | $ | 528,572 | ||
Federal income tax cost | $ | 251,021,657 |
FlexShares® Ready Access Variable Income Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2019:
Australia | 2.6 | % | ||
Canada | 7.7 | |||
Finland | 0.6 | |||
France | 1.7 | |||
Germany | 4.1 | |||
Japan | 1.3 | |||
Netherlands | 0.6 | |||
Singapore | 0.5 | |||
Sweden | 2.0 | |||
Switzerland | 1.3 | |||
United Kingdom | 4.1 | |||
United States | 72.7 | |||
Other1 | 0.8 | |||
100.0 | % |
1 | Includes anynon-fixed-income securities and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
302 | FLEXSHARES SEMIANNUAL REPORT |
Schedule of Investments
FlexShares® Core Select Bond Fund
April 30, 2019 (Unaudited)
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS – 99.3% | ||||||||
FlexShares® Credit-Scored US Corporate Bond Index Fund(a) | 172,631 | $ | 8,748,938 | |||||
FlexShares® Disciplined Duration MBS Index Fund(a) | 188,098 | 4,367,636 | ||||||
iShares 20+ Year Treasury Bond ETF | 17,771 | 2,197,384 | ||||||
iShares3-7 Year Treasury Bond ETF | 41,776 | 5,134,688 | ||||||
iShares7-10 Year Treasury Bond ETF | 10,317 | 1,092,570 | ||||||
iShares Long-Term Corporate Bond ETF | 105,655 | 6,364,658 | ||||||
iShares MBS ETF | 135,784 | 14,391,746 | ||||||
iShares Short-Term Corporate Bond ETF | 20,650 | 1,090,733 | ||||||
Total Exchange Traded Funds (Cost $42,397,509) |
| 43,388,353 | ||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS – 0.4% | ||||||||
U.S. TREASURY OBLIGATIONS – 0.4% | ||||||||
U.S. Treasury Bills | $ | 165,000 | 163,100 | |||||
Total Investments – 99.7% (Cost $42,560,593) |
| 43,551,453 | ||||||
Other Assets Less Liabilities – 0.3% |
| 145,835 | ||||||
NET ASSETS – 100.0% |
| $ | 43,697,288 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Funds. |
(b) | The rate shown was the current yield as of April 30, 2019. |
Percentages shown are based on Net Assets.
As of April 30, 2019, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 946,087 | ||
Aggregate gross unrealized depreciation | — | |||
Net unrealized appreciation | $ | 946,087 | ||
Federal income tax cost | $ | 42,605,366 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 303 |
FlexShares® Core Select Bond Fund (cont.)
As of April 30, 2019, 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 ended April 30, 2019, was as follows:
Security | Value October 31, 2018 | Purchases at Cost | Sales Proceeds | Shares April 30, 2019 | Value April 30, 2019 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain/(Loss) | ||||||||||||||||||||||||
FlexShares® Credit-Scored US Corporate Bond Index Fund | $ | 10,633,465 | $ | 3,206,376 | $ | 5,509,542 | 172,631 | $ | 8,748,938 | $ | 465,921 | $ | 165,708 | $ | (47,282 | ) | ||||||||||||||||
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | 5,822,971 | 916,435 | 6,927,638 | — | — | 381,384 | 86,653 | (193,152 | ) | |||||||||||||||||||||||
FlexShares® Disciplined Duration MBS Index Fund | 13,730,880 | 2,564,291 | 12,135,620 | 188,098 | 4,367,636 | 379,513 | 225,193 | (171,428 | ) | |||||||||||||||||||||||
FlexShares® Ready Access Variable Income Fund | 1,012,975 | 953,305 | 1,966,795 | — | — | (1,414 | ) | 17,923 | 1,929 | |||||||||||||||||||||||
$ | 31,200,291 | $ | 7,640,407 | $ | 26,539,595 | 360,729 | $ | 13,116,574 | $ | 1,225,404 | $ | 495,477 | $ | (409,933 | ) |
See Accompanying Notes to the Financial Statements.
304 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial StatementsApril 30, 2019 (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 anopen-end management investment company under the Investment Company Act of 1940 (the “1940 Act”), as amended. The Trust consists oftwenty-six operational exchange-traded funds as of April 30, 2019 (each a “Fund” and collectively, the “Funds”). The Flex-Shares® Currency Hedged Morningstar DMex-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® iBoxx3-Year Target Duration TIPS Index Fund, FlexShares® iBoxx5-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 arenon-diversified series of the Trust, pursuant to the 1940 Act. The FlexShares® Morningstar US Market Factor Tilt Index Fund, FlexShares® Morningstar Developed Marketsex-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, FlexShares® High Yield Value-Scored Bond Index Fund and the FlexShares® Core Select Bond Fund are diversified series of the Trust, pursuant to the 1940 Act.
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, FlexShares Credit-Scored US Long Corporate Bond Index Fund and the FlexShares High Yield Value-Scored Bond Index Fund seek to track Underlying Indexes 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 Marketsex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DMex-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 Indexes 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 Underlying Indexes sponsored by STOXX. The FlexShares iBoxx3-Year Target Duration TIPS Index Fund and FlexShares iBoxx5-Year Target Duration TIPS Index Fund seek to track Underlying Indexes sponsored by Markit Indexes Limited. The FlexShares Disciplined Duration MBS Index Fund seeks to track an Underlying Index sponsored by ICE Data Indexes, LLC.
Each of the FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund and FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund currently seeks its investment objective by investing a substantial amount of its assets in the shares of another FlexShares ETF. Each of these Funds may also invest directly in the securities included in its Underlying Index. The FlexShares Real Assets Allocation Index Fund is a fund of funds that seeks its investment objective by investing primarily in the shares of
FLEXSHARES SEMIANNUAL REPORT | 305 |
Notes to the Financial Statements (cont.)
other FlexShares ETFs that are eligible for inclusion in its Underlying Index, rather than in securities of individual companies. The FlexShares Core Select Bond Fund seeks to achieve its investment objective by investing, under normal circumstances in U.S. dollar-denominated investment-grade fixed-income securities either directly or indirectly through FlexShares ETFs, unaffiliated ETFs and other registered investment companies. The investment performance of each of the FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund and FlexShares Core Select Bond Fund is directly related to the performance of the underlying fund(s) in which it invests (“Underlying Fund”).
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. 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 Trust’s Board of Trustees (“Board”). 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. Such circumstances include 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
306 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
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 certain Funds 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 theover-the-counter market (other than the NASDAQ/NMS), including securities listed on exchanges but primarily tradedover-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 tradedover-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 othernon-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
FLEXSHARES SEMIANNUAL REPORT | 307 |
Notes to the Financial Statements (cont.)
associated with processing or human errors, systems or technology failures, and errors caused by third party service providers, data sources, or trading counterparties. Such 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.
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, as long as 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.
The following is a summary of the valuations as of April 30, 2019 for each Fund based upon the three levels defined above. 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 | Total | |||||||||||||
FlexShares Morningstar US Market Factor Tilt Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 1,479,501,471 | $ | — | $ | — | $ | 1,479,501,471 | ||||||||
Rights | — | — | 6,522 | 6,522 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 44,496,190 | — | 44,496,190 | ||||||||||||
Commercial Paper | — | 6,487,272 | — | 6,487,272 | ||||||||||||
Repurchase Agreements | — | 52,226,080 | — | 52,226,080 | ||||||||||||
Total Investments | $ | 1,479,501,471 | $ | 103,209,542 | $ | 6,522 | $ | 1,582,717,535 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 1,154,294 | $ | — | $ | — | $ | 1,154,294 | ||||||||
Total Other Financial Instruments | $ | 1,154,294 | $ | — | $ | — | $ | 1,154,294 | ||||||||
308 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Closed End Funds | $ | 968,664 | $ | — | $ | — | $ | 968,664 | ||||||||
Common Stocks | ||||||||||||||||
Construction & Engineering | 24,267,369 | 17,459 | — | 24,284,828 | ||||||||||||
Health Care Providers & Services | 5,530,169 | 63,288 | — | 5,593,457 | ||||||||||||
Industrial Conglomerates | 9,292,062 | 39,361 | — | 9,331,423 | ||||||||||||
Insurance | 52,860,702 | 217,616 | — | 53,078,318 | ||||||||||||
Oil, Gas & Consumable Fuels | 61,402,736 | 9,588 | — | 61,412,324 | ||||||||||||
Pharmaceuticals | 41,010,207 | 10 | — | 41,010,217 | ||||||||||||
Other* | 818,100,617 | — | — | 818,100,617 | ||||||||||||
Preferred Stocks | — | 4,556 | — | 4,556 | ||||||||||||
Rights | 5,004 | — | 21,757 | 26,761 | ||||||||||||
Warrants | — | — | — | — | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 14,484,118 | — | 14,484,118 | ||||||||||||
Total Investments | $ | 1,013,437,530 | $ | 14,835,996 | $ | 21,757 | $ | 1,028,295,283 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 781,675 | $ | — | $ | — | $ | 781,675 | ||||||||
Forward Foreign Currency Contracts | — | 14,878 | — | 14,878 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (5,527 | ) | — | — | (5,527 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (46,323 | ) | — | (46,323 | ) | ||||||||||
Total Other Financial Instruments | $ | 776,148 | $ | (31,445 | ) | $ | — | $ | 744,703 |
FLEXSHARES SEMIANNUAL REPORT | 309 |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Banks | $ | 84,466,425 | $ | 454,509 | $ | — | $ | 84,920,934 | ||||||||
Beverages | 3,236,072 | 22,228 | — | 3,258,300 | ||||||||||||
Capital Markets | 12,206,258 | 117,776 | — | 12,324,034 | ||||||||||||
Entertainment | 2,714,563 | 21,475 | — | 2,736,038 | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 4,626,972 | 69,907 | — | 4,696,879 | ||||||||||||
Food & Staples Retailing | 5,345,904 | 807 | — | 5,346,711 | ||||||||||||
Food Products | 10,237,248 | 234,882 | — | 10,472,130 | ||||||||||||
Health Care Equipment & Supplies | 465,648 | 2,799 | — | 468,447 | ||||||||||||
Hotels, Restaurants & Leisure | 3,787,954 | 2,143 | — | 3,790,097 | ||||||||||||
Industrial Conglomerates | 10,187,433 | 4,022 | — | 10,191,455 | ||||||||||||
Oil, Gas & Consumable Fuels | 33,525,425 | 1,961 | — | 33,527,386 | ||||||||||||
Pharmaceuticals | 4,620,789 | 272,256 | — | 4,893,045 | ||||||||||||
Real Estate Management & Development | 36,140,041 | 59,701 | — | 36,199,742 | ||||||||||||
Technology Hardware, Storage & Peripherals | 32,423,708 | 29,918 | — | 32,453,626 | ||||||||||||
Textiles, Apparel & Luxury Goods | 8,891,917 | 184,599 | — | 9,076,516 | ||||||||||||
Other* | 322,748,724 | — | — | 322,748,724 | ||||||||||||
Corporate Bonds* | — | 9,170 | — | 9,170 | ||||||||||||
Rights | — | 59,085 | — | 59,085 | ||||||||||||
Warrants | — | — | — | — | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 3,577,822 | — | 3,577,822 | ||||||||||||
Total Investments | $ | 575,625,081 | $ | 5,125,060 | $ | — | $ | 580,750,141 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 205,303 | $ | — | $ | — | $ | 205,303 | ||||||||
Forward Foreign Currency Contracts | — | 42,394 | — | 42,394 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (11,551 | ) | — | (11,551 | ) | ||||||||||
Total Other Financial Instruments | $ | 205,303 | $ | 30,843 | $ | — | $ | 236,146 | ||||||||
310 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Exchange Traded Funds | $ | 8,399,144 | $ | — | $ | — | $ | 8,399,144 | ||||||||
Total Investments | $ | 8,399,144 | $ | — | $ | — | $ | 8,399,144 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 30,338 | $ | — | $ | 30,338 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (11,373 | ) | — | (11,373 | ) | ||||||||||
Total Other Financial Instruments | $ | — | $ | 18,965 | $ | — | $ | 18,965 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Exchange Traded Funds | $ | 5,789,714 | $ | — | $ | — | $ | 5,789,714 | ||||||||
Total Investments | $ | 5,789,714 | $ | — | $ | — | $ | 5,789,714 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 2,130 | $ | — | $ | — | $ | 2,130 | ||||||||
Forward Foreign Currency Contracts | — | 42,495 | — | 42,495 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (921 | ) | — | (921 | ) | ||||||||||
Total Other Financial Instruments | $ | 2,130 | $ | 41,574 | $ | — | $ | 43,704 | ||||||||
FLEXSHARES SEMIANNUAL REPORT | 311 |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares US Quality Large Cap Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 81,260,702 | $ | — | $ | — | $ | 81,260,702 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 653,504 | — | 653,504 | ||||||||||||
Total Investments | $ | 81,260,702 | $ | 653,504 | $ | — | $ | 81,914,206 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 64,159 | $ | — | $ | — | $ | 64,159 | ||||||||
Total Other Financial Instruments | $ | 64,159 | $ | — | $ | — | $ | 64,159 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares STOXX® US ESG Impact Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 45,177,580 | $ | — | $ | — | $ | 45,177,580 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 111,491 | — | 111,491 | ||||||||||||
Total Investments | $ | 45,177,580 | $ | 111,491 | $ | — | $ | 45,289,071 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 13,680 | $ | — | $ | — | $ | 13,680 | ||||||||
Total Other Financial Instruments | $ | 13,680 | $ | — | $ | — | $ | 13,680 | ||||||||
312 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares STOXX® Global ESG Impact Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Industrial Conglomerates | $ | 606,870 | $ | 4,920 | $ | — | $ | 611,790 | ||||||||
Other* | 72,546,237 | — | — | 72,546,237 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | $ | — | $ | 879,269 | $ | — | $ | 879,269 | ||||||||
Total Investments | $ | 73,153,107 | $ | 884,189 | $ | — | $ | 74,037,296 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 32,134 | $ | — | $ | — | $ | 32,134 | ||||||||
Total Other Financial Instruments | $ | 32,134 | $ | — | $ | — | $ | 32,134 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 5,608,852,141 | $ | — | $ | — | $ | 5,608,852,141 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 103,979,437 | — | 103,979,437 | ||||||||||||
Commercial Paper | — | 9,957,575 | — | 9,957,575 | ||||||||||||
Funding Agreements | — | 3,000,000 | — | 3,000,000 | ||||||||||||
Repurchase Agreements | — | 114,576,504 | — | 114,576,504 | ||||||||||||
Total Investments | $ | 5,608,852,141 | $ | 231,513,516 | $ | — | $ | 5,840,365,657 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 1,474,028 | $ | — | $ | — | $ | 1,474,028 | ||||||||
Forward Foreign Currency Contracts | — | 558,130 | — | 558,130 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (8,291 | ) | — | — | (8,291 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (367,051 | ) | — | (367,051 | ) | ||||||||||
Total Other Financial Instruments | $ | 1,465,737 | $ | 191,079 | $ | — | $ | 1,656,816 | ||||||||
FLEXSHARES SEMIANNUAL REPORT | 313 |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Commercial Services & Supplies | $ | 33,291,185 | $ | 168,892 | $ | — | $ | 33,460,077 | ||||||||
Other* | 894,969,953 | — | — | 894,969,953 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 23,065,024 | — | 23,065,024 | ||||||||||||
Total Investments | $ | 928,261,138 | $ | 23,233,916 | $ | — | $ | 951,495,054 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 379,827 | $ | — | $ | — | $ | 379,827 | ||||||||
Forward Foreign Currency Contracts | — | 9,613 | — | 9,613 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (16,990 | ) | — | (16,990 | ) | ||||||||||
Total Other Financial Instruments | $ | 379,827 | $ | (7,377 | ) | $ | — | $ | 372,450 | |||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Global Quality Real Estate Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Industrial Conglomerates | $ | — | $ | 782,293 | $ | — | $ | 782,293 | ||||||||
Other* | 330,970,688 | — | — | 330,970,688 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 7,855,000 | — | 7,855,000 | ||||||||||||
Total Investments | $ | 330,970,688 | $ | 8,637,293 | $ | — | $ | 339,607,981 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 126,484 | $ | — | $ | — | $ | 126,484 | ||||||||
Forward Foreign Currency Contracts | — | 8,578 | — | 8,578 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (8,291 | ) | — | — | (8,291 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (11,034 | ) | — | (11,034 | ) | ||||||||||
Total Other Financial Instruments | $ | 118,193 | $ | (2,456 | ) | $ | — | $ | 115,737 | |||||||
314 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Real Assets Allocation Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Exchange Traded Funds | $ | 10,196,434 | $ | — | $ | — | $ | 10,196,434 | ||||||||
Total Investments | $ | 10,196,434 | $ | — | $ | — | $ | 10,196,434 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Quality Dividend Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 1,763,188,384 | $ | — | $ | — | $ | 1,763,188,384 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 100,477,858 | — | 100,477,858 | ||||||||||||
Commercial Paper | — | 9,957,575 | — | 9,957,575 | ||||||||||||
Repurchase Agreements | — | 39,335,621 | — | 39,335,621 | ||||||||||||
Total Investments | $ | 1,763,188,384 | $ | 149,771,054 | $ | — | $ | 1,912,959,438 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 1,496,811 | $ | — | $ | — | $ | 1,496,811 | ||||||||
Total Other Financial Instruments | $ | 1,496,811 | $ | — | $ | — | $ | 1,496,811 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Quality Dividend Defensive Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 374,965,261 | $ | — | $ | — | $ | 374,965,261 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 19,950,016 | — | 19,950,016 | ||||||||||||
Total Investments | $ | 374,965,261 | $ | 19,950,016 | $ | — | $ | 394,915,277 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 336,673 | $ | — | $ | — | $ | 336,673 | ||||||||
Total Other Financial Instruments | $ | 336,673 | $ | — | $ | — | $ | 336,673 | ||||||||
FLEXSHARES SEMIANNUAL REPORT | 315 |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Quality Dividend Dynamic Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 50,713,551 | $ | — | $ | — | $ | 50,713,551 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 89,590 | — | 89,590 | ||||||||||||
Total Investments | $ | 50,713,551 | $ | 89,590 | $ | — | $ | 50,803,141 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 48,733 | $ | — | $ | — | $ | 48,733 | ||||||||
Total Other Financial Instruments | $ | 48,733 | $ | — | $ | — | $ | 48,733 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares International Quality Dividend Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 834,402,472 | $ | — | $ | — | $ | 834,402,472 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 35,071,552 | — | 35,071,552 | ||||||||||||
Total Investments | $ | 834,402,472 | $ | 35,071,552 | $ | — | $ | 869,474,024 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 460,774 | $ | — | $ | — | $ | 460,774 | ||||||||
Forward Foreign Currency Contracts | — | 69,834 | — | 69,834 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (3,296 | ) | — | — | (3,296 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (30,883 | ) | — | (30,883 | ) | ||||||||||
Total Other Financial Instruments | $ | 457,478 | $ | 38,951 | $ | — | $ | 496,429 |
316 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares International Quality Dividend Defensive Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 93,738,045 | $ | — | $ | — | $ | 93,738,045 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 1,301,131 | — | 1,301,131 | ||||||||||||
Total Investments | $ | 93,738,045 | $ | 1,301,131 | $ | — | $ | 95,039,176 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 75,390 | $ | — | $ | — | $ | 75,390 | ||||||||
Forward Foreign Currency Contracts | — | 1,146 | — | 1,146 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (53 | ) | — | (53 | ) | ||||||||||
Total Other Financial Instruments | $ | 75,390 | $ | 1,093 | $ | — | $ | 76,483 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares International Quality Dividend Dynamic Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Common Stocks* | $ | 44,489,724 | $ | — | $ | — | $ | 44,489,724 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 532,077 | — | 532,077 | ||||||||||||
Total Investments | $ | 44,489,724 | $ | 532,077 | $ | — | $ | 45,021,801 | ||||||||
Other Financial Instruments |
| |||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 25,676 | $ | — | $ | — | $ | 25,676 | ||||||||
Total Other Financial Instruments | $ | 25,676 | $ | — | $ | — | $ | 25,676 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares iBoxx3-Year Target Duration TIPS Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 1,258,535,893 | $ | — | $ | 1,258,535,893 | ||||||||
Total Investments | $ | — | $ | 1,258,535,893 | $ | — | $ | 1,258,535,893 | ||||||||
FLEXSHARES SEMIANNUAL REPORT | 317 |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares iBoxx5-Year Target Duration TIPS Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 558,972,060 | $ | — | $ | 558,972,060 | ||||||||
Total Investments | $ | — | $ | 558,972,060 | $ | — | $ | 558,972,060 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Disciplined Duration MBS Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Mortgage-Backed Securities | $ | — | $ | 50,685,543 | $ | — | $ | 50,685,543 | ||||||||
Total Investments | $ | — | $ | 50,685,543 | $ | — | $ | 50,685,543 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Corporate Bonds* | $ | — | $ | 102,638,177 | $ | — | $ | 102,638,177 | ||||||||
Total Investments | $ | — | $ | 102,638,177 | $ | — | $ | 102,638,177 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Asset-Backed Securities | $ | — | $ | 20,209 | $ | — | $ | 20,209 | ||||||||
Corporate Bonds* | — | 28,210,142 | — | 28,210,142 | ||||||||||||
Total Investments | $ | — | $ | 28,230,351 | $ | — | $ | 28,230,351 | ||||||||
318 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares High Yield Value-Scored Bond Index Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Corporate Bonds* | $ | — | $ | 40,293,639 | $ | — | $ | 40,293,639 | ||||||||
Total Investments | $ | — | $ | 40,293,639 | $ | — | $ | 40,293,639 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Ready Access Variable Income Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Asset-Backed Securities | $ | — | $ | 20,569,329 | $ | — | $ | 20,569,329 | ||||||||
Collateralized Mortgage Obligations | — | 354,039 | — | 354,039 | ||||||||||||
Corporate Bonds* | — | 221,559,067 | — | 221,559,067 | ||||||||||||
U.S. Treasury Obligations | — | 2,793,129 | — | 2,793,129 | ||||||||||||
Short-Term Investments | — | 6,274,665 | — | 6,274,665 | ||||||||||||
Total Investments | $ | — | $ | 251,550,229 | $ | — | $ | 251,550,229 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant | Total | |||||||||||||
FlexShares Core Select Bond Fund |
| |||||||||||||||
Investments |
| |||||||||||||||
Exchange Traded Funds | $ | 43,388,353 | $ | — | $ | — | $ | 43,388,353 | ||||||||
Short-Term Investments | — | 163,100 | — | 163,100 | ||||||||||||
Total Investments | $ | 43,388,353 | $ | 163,100 | $ | — | $ | 43,551,453 |
* | See Schedules of Investments for segregation by industry type. |
Foreign Securities
The FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DMex-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 innon-U.S.
FLEXSHARES SEMIANNUAL REPORT | 319 |
Notes to the Financial Statements (cont.)
dollar denominated securities traded outside the U.S. The Funds’ investments in foreign securities 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 anon-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.
In addition to investment risks associated with the underlying issuer, ADRs and GDRs expose a Fund to risk associated withnon-uniform terms that apply to ADR and GDR programs, credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank establishes the programs, currency and liquidity risk. ADRs and GDRs are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted.
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, FlexShares Credit-Scored US Long Corporate Bond Index Fund and the FlexShares High Yield Value-Scored Bond Index Fund may invest in U.S. dollar denominated bonds ofnon-U.S. corporations to the extent such bonds are included in each Fund’s Underlying Index. The FlexShares Core Select Bond Fund may invest in U.S. dollar denominated bonds ofnon-U.S. corporations, either directly or indirectly through Underlying Funds, to achieve its investment objective.
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. To the extent that a Fund’s assets are significantly invested in a single country or geographic region, a Fund will be subject to the risks associated with that particular country or region.
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 (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.
320 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Inflation-Indexed Securities
The FlexShares iBoxx3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx5-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 bond 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. TheCPI-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.
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
FLEXSHARES SEMIANNUAL REPORT | 321 |
Notes to the Financial Statements (cont.)
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. The use of this technique may diminish the investment performance of the Fund compared with what such performance would have been without the use of mortgage dollar rolls.
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 fortri-party repurchase agreements is held in accounts at JP Morgan Chase, the Fund’s custodian, and is not reflected in the assets of the Funds, 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, 2019, none of the Funds presented in these financial statements had repurchase agreements outstanding.
As of the period ended April 30, 2019, the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Marketsex-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 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 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.”
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 bynon-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 | % |
322 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Type of Loan | Minimum Initial Collateral Requirement | |||
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 andNon-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 thanone-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).” The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day.
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 the event of a default by a borrower with respect to any loan, the Securities Lending Agent will exercise any and all remedies provided under the applicable borrower agreement. These remedies include purchasing replacement securities for the Fund by applying the collateral held from the defaulting borrower against the purchase cost of the replacement securities. If the proceeds from the collateral are less than the purchase cost of the replacement securities, the Securities Lending Agent is responsible for such shortfall, subject to certain limitations that are set forth in detail in the Securities Lending Agency Agreement. 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 Accounting Standard Update (“ASU”)2014-11, Transfers and Servicing (Topic 860): Repurchaseto-Maturity Transactions, Repurchase Financings, and Disclosures, liabilities under the outstanding securities lending transactions as of April 30, 2019, which were comprised of cash, were as follows:
Fund | ||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 103,184,691 | ||
FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | 14,484,118 | |||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 3,577,822 | |||
FlexShares US Quality Large Cap Index Fund | 653,504 |
FLEXSHARES SEMIANNUAL REPORT | 323 |
Notes to the Financial Statements (cont.)
Fund | ||||
FlexShares STOXX® US ESG Impact Index Fund | $ | 111,491 | ||
FlexShares STOXX® Global ESG Impact Index Fund | 879,269 | |||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 231,439,250 | |||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 23,065,024 | |||
FlexShares Global Quality Real Estate Index Fund | 7,855,000 | |||
FlexShares Quality Dividend Index Fund | 149,698,267 | |||
FlexShares Quality Dividend Defensive Index Fund | 19,950,016 | |||
FlexShares Quality Dividend Dynamic Index Fund | 89,590 | |||
FlexShares International Quality Dividend Index Fund | 35,071,552 | |||
FlexShares International Quality Dividend Defensive Index Fund | 1,301,131 | |||
FlexShares International Quality Dividend Dynamic Index Fund | 532,077 |
At April 30, 2019, the Securities Lending Agency Agreement does not permit the Funds to enforce a netting arrangement.
Regulations that will begin to take effect in 2019 will require certain bank-regulated counterparties and certain of their affiliates to include in certain financial contracts, including many securities lending agreements, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these new requirements, as well as potential additional government regulation and other developments in the market, could adversely affect a Fund’s ability to terminate existing securities lending agreements or to realize amounts to be received under such agreements.
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. 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”.
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 transactions 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.
As of April 30, 2019, the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets 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,
324 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
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 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.
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 atwo-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 DMex-US Factor Tilt Index Fund and FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund intend 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 Marketsex-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
FLEXSHARES SEMIANNUAL REPORT | 325 |
Notes to the Financial Statements (cont.)
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) from settlement of forward foreign currency contracts” and (ii) unrealized gains or losses in “Net change in 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, 2019, the FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund, FlexShares
Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DMex-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 Agreement 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 thenon-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 Marketsex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DMex-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
326 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Index 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 Marketsex-US Factor Tilt Index Fund | Foreign Currency Contracts — Citibank NA | $ | 10,627 | $ | (6,990 | ) | $ | — | $ | 3,637 | ||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | 4,238 | (4,238 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | 13 | — | — | 13 | ||||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | — | — | — | — | ||||||||||||||
Total | $ | 14,878 | $ | (11,228 | ) | $ | — | $ | 3,650 | |||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | Foreign Currency Contracts — BNP Paribas SA | $ | 11,440 | $ | — | $ | — | $ | 11,440 | |||||||||
Foreign Currency Contracts — Citibank NA | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 194 | (194 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 30,760 | — | — | 30,760 | ||||||||||||||
Foreign Currency Contracts — Credit Suisse International | — | — | — | — | ||||||||||||||
Total | $ | 42,394 | $ | (194 | ) | $ | — | $ | 42,200 | |||||||||
FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index | Foreign Currency Contracts — Morgan Stanley | $ | 30,338 | $ | (11,373 | ) | $ | — | $ | 18,965 | ||||||||
Total | $ | 30,338 | $ | (11,373 | ) | $ | — | $ | 18,965 | |||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | Foreign Currency Contracts — Morgan Stanley | $ | 42,495 | $ | (921 | ) | $ | — | $ | 41,574 | ||||||||
Total | $ | 42,495 | $ | (921 | ) | $ | — | $ | 41,574 | |||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | Foreign Currency Contracts — Bank of New York | $ | 2,363 | $ | — | $ | — | $ | 2,363 | |||||||||
Foreign Currency Contracts — BNP Paribas SA | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Citibank NA | 118,461 | (118,461 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 88,723 | (9,334 | ) | (60,000 | ) | 19,389 | ||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | 2,553 | (2,553 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 298,566 | (67,580 | ) | — | 230,986 | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 47,464 | (6,472 | ) | — | 40,992 | |||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Total | $ | 558,130 | $ | (204,400 | ) | $ | (60,000 | ) | $ | 293,730 | ||||||||
FlexShares STOXX® Global Infrastructure Index Fund | Foreign Currency Contracts — Citibank NA | $ | 8,992 | $ | (8,992 | ) | $ | — | $ | — | ||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | 290 | (290 | ) | — | — | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | 331 | (331 | ) | — | — | |||||||||||||
Total | $ | 9,613 | $ | (9,613 | ) | $ | — | $ | — |
FLEXSHARES SEMIANNUAL REPORT | 327 |
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 Global Quality Real Estate Index Fund | Foreign Currency Contracts — Citibank NA | $ | 3,367 | $ | (555 | ) | $ | — | $ | 2,812 | ||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | 2,388 | (2,225 | ) | — | 163 | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 1,563 | (1,033 | ) | — | 530 | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | 498 | (498 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | 762 | — | — | 762 | ||||||||||||||
Total | $ | 8,578 | $ | (4,311 | ) | $ | — | $ | 4,267 | |||||||||
FlexShares International Quality Dividend Index Fund | Foreign Currency Contracts — BNP Paribas SA | $ | 21,487 | $ | (1,507 | ) | $ | — | $ | 19,980 | ||||||||
Foreign Currency Contracts — Citibank NA | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 1,359 | (1,359 | ) | — | — | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | 3,972 | (3,972 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 30,293 | (380 | ) | — | 29,913 | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 12,723 | (4,864 | ) | — | 7,859 | |||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Total | $ | 69,834 | $ | (12,082 | ) | $ | — | $ | 57,752 | |||||||||
FlexShares International Quality Dividend Defensive Index Fund | Foreign Currency Contracts — BNP Paribas SA | $ | 772 | $ | — | $ | — | $ | 772 | |||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | 374 | — | — | 374 | ||||||||||||||
Foreign Currency Contracts — Citibank NA | — | — | — | — | ||||||||||||||
Total | $ | 1,146 | $ | — | $ | — | $ | 1,146 |
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 Marketsex-US Factor Tilt Index Fund | Foreign Currency Contracts — Citibank NA | $ | (6,990 | ) | $ | 6,990 | $ | — | $ | — | ||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (9,310 | ) | — | — | (9,310 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (13,359 | ) | 4,238 | — | (9,121 | ) | ||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (16,664 | ) | — | — | (16,664 | ) | ||||||||||||
Total | $ | (46,323 | ) | $ | 11,228 | $ | — | $ | (35,095 | ) |
328 | FLEXSHARES SEMIANNUAL REPORT |
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 Morningstar Emerging Markets Factor Tilt Index Fund | Foreign Currency Contracts — BNP Paribas SA | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Citibank NA | (9,264 | ) | — | — | (9,264 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (2,158 | ) | 194 | — | (1,964 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Credit Suisse International | (129 | ) | — | — | (129 | ) | ||||||||||||
Total | $ | (11,551 | ) | $ | 194 | $ | — | $ | (11,357 | ) | ||||||||
FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index | Foreign Currency Contracts — Morgan Stanley | $ | (11,373 | ) | $ | 11,373 | $ | — | $ | — | ||||||||
Total | $ | (11,373 | ) | $ | 11,373 | $ | — | $ | — | |||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | Foreign Currency Contracts — Morgan Stanley | $ | (921 | ) | $ | 921 | $ | — | $ | — | ||||||||
Total | $ | (921 | ) | $ | 921 | $ | — | $ | — | |||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | Foreign Currency Contracts — Bank of New York | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — BNP Paribas SA | (50,787 | ) | — | — | (50,787 | ) | ||||||||||||
Foreign Currency Contracts — Citibank NA | (192,309 | ) | 118,461 | — | (73,848 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (9,334 | ) | 9,334 | — | — | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (15,354 | ) | 2,553 | — | (12,801 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (67,580 | ) | 67,580 | — | — | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (6,472 | ) | 6,472 | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | (25,215 | ) | — | — | (25,215 | ) | ||||||||||||
Total | $ | (367,051 | ) | $ | 204,400 | $ | — | $ | (162,651 | ) | ||||||||
FlexShares STOXX® Global Infrastructure Index Fund | Foreign Currency Contracts — Citibank NA | $ | (9,369 | ) | $ | 8,992 | $ | — | $ | (377 | ) | |||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (1,041 | ) | — | — | (1,041 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (4,493 | ) | 290 | — | (4,203 | ) | ||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (2,087 | ) | 331 | — | (1,756 | ) | ||||||||||||
Total | $ | (16,990 | ) | $ | 9,613 | $ | — | $ | (7,377 | ) | ||||||||
FlexShares Global Quality Real Estate Index Fund | Foreign Currency Contracts — Citibank NA | $ | (555 | ) | $ | 555 | $ | — | $ | — | ||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (316 | ) | — | — | (316 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (2,225 | ) | 2,225 | — | — | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (1,033 | ) | 1,033 | — | — | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (6,905 | ) | 498 | — | (6,407 | ) | ||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Total | $ | (11,034 | ) | $ | 4,311 | $ | — | $ | (6,723 | ) |
FLEXSHARES SEMIANNUAL REPORT | 329 |
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 International Quality Dividend Index Fund | Foreign Currency Contracts — BNP Paribas SA | $ | (1,507 | ) | $ | 1,507 | $ | — | $ | — | ||||||||
Foreign Currency Contracts — Citibank NA | (8,730 | ) | — | — | (8,730 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (1,693 | ) | 1,359 | — | (334 | ) | ||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (13,649 | ) | 3,972 | — | (9,677 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (380 | ) | 380 | — | — | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (4,864 | ) | 4,864 | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | (60 | ) | — | — | (60 | ) | ||||||||||||
Total | $ | (30,883 | ) | $ | 12,082 | $ | — | $ | (18,801 | ) | ||||||||
FlexShares International Quality Dividend Defensive Index Fund | Foreign Currency Contracts — BNP Paribas SA | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Citibank NA | (53 | ) | — | — | (53 | ) | ||||||||||||
Total | $ | (53 | ) | $ | — | $ | — | $ | (53 | ) |
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, 2019
Derivatives by risk type | Statements of Assets and Liabilities Location | Fund | Value | |||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 1,154,294 | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | 781,675 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | (5,527 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | 14,878 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | (46,323 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 205,303 | |||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 42,394 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | (11,551 | ) |
330 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Derivatives by risk type | Statements of Assets and Liabilities Location | Fund | Value | |||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | $ | 30,338 | ||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | (11,373 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 2,130 | |||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 42,495 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | (921 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares US Quality Large Cap Index Fund | 64,159 | |||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares STOXX® US ESG Impact Index Fund | 13,680 | |||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares STOXX® Global ESG Impact Index Fund | 32,134 | |||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar Global Upstream Natural Resources Index Fund | 1,474,028 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Morningstar Global Upstream Natural Resources Index Fund | (8,291 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | 558,130 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | (367,051 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares STOXX® Global Broad Infrastructure Index Fund | 379,827 | |||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | 9,613 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | (16,990 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Global Quality Real Estate Index Fund | 126,484 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Global Quality Real Estate Index Fund | (8,291 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Global Quality Real Estate Index Fund | 8,578 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Global Quality Real Estate Index Fund | (11,034 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Quality Dividend Index Fund | 1,496,811 |
FLEXSHARES SEMIANNUAL REPORT | 331 |
Notes to the Financial Statements (cont.)
Derivatives by risk type | Statements of Assets and Liabilities Location | Fund | Value | |||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Quality Dividend Defensive Index Fund | $ | 336,673 | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Quality Dividend Dynamic Index Fund | 48,733 | |||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Index Fund | 460,774 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares International Quality Dividend Index Fund | (3,296 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares International Quality Dividend Index Fund | 69,834 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares International Quality Dividend Index Fund | (30,883 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Defensive Index Fund | 75,390 | |||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares International Quality Dividend Defensive Index Fund | 1,146 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares International Quality Dividend Defensive Index Fund | (53 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Dynamic Index Fund | 25,676 |
* | 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. |
The Effect of Derivative Instruments on the Statements of Operations for the Period Ended April 30, 2019
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 | $ | (2,865,010 | ) | $ | 2,317,901 | |||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | (756,112 | ) | 1,356,636 |
332 | FLEXSHARES SEMIANNUAL REPORT |
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 Morningstar Developed Marketsex-US Factor Tilt Index Fund | $ | (82,014 | ) | $ | 116,519 | |||||
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 | 191,540 | 331,579 | ||||||||
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 | (23,368 | ) | 64,225 | |||||||
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 DMex-US Factor Tilt Index Fund | 128,968 | (66,579 | ) | |||||||
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 | 1,071 | 4,911 | ||||||||
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 | (5,129 | ) | 4,370 | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares US Quality Large Cap Index Fund | 27,572 | 75,331 | ||||||||
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 | (21,950 | ) | 40,578 |
FLEXSHARES SEMIANNUAL REPORT | 333 |
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 STOXX® Global ESG Impact Index Fund | $ | (59,966 | ) | $ | 98,308 | |||||
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 | 188,345 | 3,286,358 | ||||||||
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 | (430,507 | ) | 422,597 | |||||||
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 | (379,762 | ) | 649,920 | |||||||
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 | (50,734 | ) | 6,942 | |||||||
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 | (341,522 | ) | 538,582 | |||||||
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 | 11,119 | (14,417 | ) | |||||||
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 | (893,085 | ) | 2,378,740 |
334 | FLEXSHARES SEMIANNUAL REPORT |
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 Quality Dividend Defensive Index Fund | $ | (309,388 | ) | $ | 483,218 | |||||
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 | (31,822 | ) | 79,080 | |||||||
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 | 28,351 | 783,223 | ||||||||
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 | 13,164 | 55,806 | ||||||||
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 | (20,853 | ) | 151,400 | |||||||
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 | (495 | ) | 2,576 | |||||||
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 | (20,698 | ) | 55,190 | |||||||
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 | 14,881 | — |
FLEXSHARES SEMIANNUAL REPORT | 335 |
Notes to the Financial Statements (cont.)
At April 30, 2019, the volume of derivative activities, which represents activities throughout the period, was as follows:
Foreign Exchange Contracts | Equity Contracts | Interest Rate Contracts | ||||||||||||||||||||||||||||||||||||||
Fund | Number of Trades | Average Notional Amount | Number of Trades Long | Average Notional Balance Long | Number of Trades Short | Average Notional Balance Short | Number of Trades Long | Average Notional Balance Long | Number of Trades Short | Average Notional Balance Short | ||||||||||||||||||||||||||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | — | $ | — | 158 | $ | 476,526 | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||||||||||||
FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | 48 | 671,468 | 151 | 366,896 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 64 | 296,732 | 54 | 370,676 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | 182 | 541,273 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 330 | 286,597 | 2 | 50,716 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares US Quality Large Cap Index Fund | — | — | 22 | 183,956 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares STOXX® US ESG Impact Index Fund | — | — | 16 | 148,336 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares STOXX® Global ESG Impact Index Fund | — | — | 42 | 87,208 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 246 | 1,134,319 | 289 | 809,310 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 49 | 245,052 | 129 | 263,600 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Global Quality Real Estate Index Fund | 53 | 328,410 | 84 | 321,446 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Quality Dividend Index Fund | — | — | 66 | 1,088,774 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Quality Dividend Defensive Index Fund | — | — | 53 | 403,827 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Quality Dividend Dynamic Index Fund | — | — | 15 | 163,470 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares International Quality Dividend Index Fund | 128 | 292,040 | 190 | 255,324 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares International Quality Dividend Defensive Index Fund | 16 | 33,548 | 55 | 125,891 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares International Quality Dividend Dynamic Index Fund | — | — | 31 | 79,789 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
FlexShares Core Select Bond Fund | — | — | — | — | — | — | 4 | 1,695,792 | — | — |
336 | FLEXSHARES SEMIANNUAL REPORT |
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 April 30, 2019, 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 andon-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 theex-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 Fund except the FlexShares iBoxx3-Year Target Duration TIPs Index Fund, FlexShares iBoxx5-Year Target Duration TIPs Index Fund and the FlexShares High Yield Value-Scored Bond 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 Board.
As compensation for its advisory services and assumption of certain Fund expenses, NTI is entitled to a unitary management fee (“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 Management Fee, NTI pays most of the expenses of the Fund, including the cost of transfer agency, custody,
FLEXSHARES SEMIANNUAL REPORT | 337 |
Notes to the Financial Statements (cont.)
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 their independent legal counsel, taxes and other extraordinary costs such as litigation and other expenses not incurred in the ordinary course of business.
The 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 Marketsex-US Factor Tilt Index Fund | 0.39 | % | ||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 0.59 | % | ||
FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | 0.44 | % | ||
FlexShares Currency Hedged Morningstar EM 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 | % |
Fund | Unitary Management Fee | |||
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 | % | ||
FlexShares iBoxx3-Year Target Duration TIPS Index Fund | 0.18 | % | ||
FlexShares iBoxx5-Year Target Duration TIPS Index Fund | 0.18 | % | ||
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 High Yield Value-Scored Bond Index Fund | 0.37 | % | ||
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 DMex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund and 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 incurred by the Fund that are attributable to the Fund’s investment in Underlying 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 Underlying Funds that are not Affiliated Funds, until
338 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
March 1, 2020. After these dates, the Investment Adviser and a Fund may mutually agree to extend the contractual arrangements. The Board 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.
In addition, effective October 29, 2018, NTI contractually agreed to reimburse the Funds for certain other fees and expenses that are not Covered Expenses. These fees and expenses and the reimbursements are shown as Other expenses and Other expenses reimbursed, respectively, in the Statements of Operations.
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, 2019, 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 reasonableout-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 reasonableout-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.
From November 1, 2018 until March 1, 2019, NTI contractually agreed with each Fund, except the FlexShares High Yield Value-Scored Bond Index Fund, to reimburse the fees and expenses of the Trust’s independent trustees and their independent legal counsel paid by each Fund. As of March 1, 2019, NTI has contractually agreed to reimburse each Fund its proportionate share of the expenses relating to the administration of the deferred compensation plan (“DC Plan”) for the Trust’s independent trustees allocated to such Fund until at least March 1, 2020. After this date, NTI and each Fund may mutually agree to extend the contractual arrangement. The Board 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 DC Plan for its Trustees who are not officers of Northern Trust or NTI. Under the DC Plan, Independent Trustees 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 Morningstar Global Upstream Natural Resources Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares iBoxx5-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 (“the Plan”) pursuant to Rule12b-1 under the 1940 Act. Payments
FLEXSHARES SEMIANNUAL REPORT | 339 |
Notes to the Financial Statements (cont.)
to financial intermediaries under the Plan are tied directly to their ownout-of-pocket expenses. The Plan has not been implemented with respect to the Funds. The Plan may not be implemented without further Board 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 any12b-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.
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, 2019 | As of October 31, 2018 | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 15,000 | $ | 12,000 | ||||
FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | 100,000 | 20,000 | ||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 100,000 | 150,000 | ||||||
FlexShares US Quality Large Cap Index Fund | 3,500 | 2,500 | ||||||
FlexShares STOXX® US ESG Impact Index Fund | 1,400 | 700 | ||||||
FlexShares STOXX® Global ESG Impact Index Fund | 7,500 | — | ||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 28,500 | 9,000 |
Fund | As of April 30, 2019 | As of October 31, 2018 | ||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | $ | 16,000 | $ | 14,000 | ||||
FlexShares Global Quality Real Estate Index Fund | 10,000 | 2,000 | ||||||
FlexShares Quality Dividend Index Fund | 11,250 | 9,750 | ||||||
FlexShares Quality Dividend Defensive Index Fund | 7,500 | 3,000 | ||||||
FlexShares Quality Dividend Dynamic Index Fund | 4,500 | 750 | ||||||
FlexShares International Quality Dividend Index Fund | 65,000 | 60,000 | ||||||
FlexShares International Quality Dividend Defensive Index Fund | 20,000 | — | ||||||
FlexShares International Quality Dividend Dynamic Index Fund | 5,000 | 5,000 | ||||||
FlexShares Disciplined Duration MBS Index Fund | 5,200 | 1,200 | ||||||
FlexShares Credit-Scored US Corporate Bond Index Fund | 1,000 | 500 | ||||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | — | — | ||||||
FlexShares High Yield Value-Scored Bond Index Fund | 500 | — | ||||||
FlexShares Ready Access Variable Income Fund | 700 | 2,100 |
The FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares iBoxx3-Year Target Duration TIPS Index Fund, FlexShares iBoxx5-Year Target Duration TIPS Index Fund and the FlexShares Core Select Bond Fund do not charge creation unit transaction fees.
340 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
10. Investment Transactions
For the period ended April 30, 2019, the FlexShares iBoxx3-Year Target Duration TIPS Index, FlexShares iBoxx5-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 andin-kind transactions for the period ended April 30, 2019, were as follows:
Fund | Purchases | Sales | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 186,968,231 | $ | 193,462,665 | ||||
FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | 151,999,088 | 142,657,740 | ||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 146,528,589 | 117,913,273 | ||||||
FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | 302,357 | 130,450 | ||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 54,086 | 57,324 | ||||||
FlexShares US Quality Large Cap Index Fund | 24,420,689 | 25,048,637 | ||||||
FlexShares STOXX® US ESG Impact Index Fund | 16,142,833 | 15,445,526 | ||||||
FlexShares STOXX® Global ESG Impact Index Fund | 26,414,815 | 26,017,533 | ||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 633,190,780 | 636,852,307 | ||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 79,028,367 | 77,091,932 | ||||||
FlexShares Global Quality Real Estate Index Fund | 94,831,729 | 84,247,470 | ||||||
FlexShares Real Assets Allocation Index Fund | 279,523 | 278,237 |
Fund | Purchases | Sales | ||||||
FlexShares Quality Dividend Index Fund | $ | 809,545,511 | $ | 839,785,165 | ||||
FlexShares Quality Dividend Defensive Index Fund | 115,864,451 | 130,033,548 | ||||||
FlexShares Quality Dividend Dynamic Index Fund | 20,141,361 | 20,382,427 | ||||||
FlexShares International Quality Dividend Index Fund | 280,513,501 | 271,362,071 | ||||||
FlexShares International Quality Dividend Defensive Index Fund | 28,718,464 | 28,525,515 | ||||||
FlexShares International Quality Dividend Dynamic Index Fund | 22,594,070 | 28,171,856 | ||||||
FlexShares iBoxx3-Year Target Duration TIPS Index Fund | 302,147,654 | 307,728,317 | ||||||
FlexShares iBoxx5-Year Target Duration TIPS Index Fund | 105,083,786 | 108,322,646 | ||||||
FlexShares Disciplined Duration MBS Index Fund | 18,820,729 | 40,777,116 | ||||||
FlexShares Credit-Scored US Corporate Bond Index Fund | 58,196,403 | 19,589,528 | ||||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 5,933,984 | 5,867,642 | ||||||
FlexShares High Yield Value-Scored Bond Index Fund | 13,129,119 | 11,817,542 | ||||||
FlexShares Ready Access Variable Income Fund† | 130,487,637 | 79,869,983 | ||||||
FlexShares Core Select Bond Fund | 31,043,620 | 31,072,110 |
† | Include $2,861,192 in purchases and $3,540,956 in sales in U.S. Government Securities. |
FLEXSHARES SEMIANNUAL REPORT | 341 |
Notes to the Financial Statements (cont.)
11.In-Kind Transactions
During the period ended April 30, 2019, certain Funds received securities in exchange for subscriptions of shares(subscriptions-in-kind). For the period ended April 30, 2019, the fair value of the securities received for subscriptions for each Fund were as follows:
Fund | Fair Value | |||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 52,257,994 | ||
FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | 74,452,404 | |||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 11,036,909 | |||
FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | 656,248 | |||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 635,796 | |||
FlexShares US Quality Large Cap Index Fund | 19,080,686 | |||
FlexShares STOXX® US ESG Impact Index Fund | 12,432,896 | |||
FlexShares STOXX® Global ESG Impact Index Fund | 4,328,081 | |||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 151,565,928 | |||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 71,605,112 | |||
FlexShares Global Quality Real Estate Index Fund | 28,545,657 | |||
FlexShares Quality Dividend Index Fund | 64,711,386 | |||
FlexShares Quality Dividend Defensive Index Fund | 47,938,778 | |||
FlexShares Quality Dividend Dynamic Index Fund | 11,151,139 | |||
FlexShares International Quality Dividend Index Fund | 119,848,335 | |||
FlexShares International Quality Dividend Defensive Index Fund | 16,316,795 | |||
FlexShares International Quality Dividend Dynamic Index Fund | 6,754,960 | |||
FlexShares iBoxx3-Year Target Duration TIPS Index Fund | 46,580,381 |
Fund | Fair Value | |||
FlexShares iBoxx5-Year Target Duration TIPS Index Fund | $ | 48,132,058 | ||
FlexShares Core Select Bond Fund | 7,109,482 |
During the period ended April 30, 2019, certain Funds 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 period ended April 30, 2019, the fair value and realized gain (losses) of the securities transferred for redemptions for each Fund were as follows:
Fund | Fair Value | Net Realized Gains (Losses) | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 42,760,731 | $ | 21,821,360 | ||||
FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund | 54,930,126 | 11,736,420 | ||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 3,867,396 | 181,958 | ||||||
FlexShares Currency Hedged Morningstar DMex-US Factor Tilt Index Fund | 651,591 | (3,143 | ) | |||||
FlexShares US Quality Large Cap Index Fund | 1,466,405 | 68,405 | ||||||
FlexShares STOXX® Global ESG Impact Index Fund | 9,077,508 | 1,787,706 | ||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 142,894,714 | 31,211,188 | ||||||
FlexShares Real Assets Allocation Index Fund | 4,857,109 | 290,406 | ||||||
FlexShares Quality Dividend Index Fund | 87,606,445 | 19,117,176 | ||||||
FlexShares Quality Dividend Dynamic Index Fund | 8,618,107 | 1,961,785 | ||||||
FlexShares International Quality Dividend Index Fund | 78,103,110 | (1,502,462 | ) |
342 | FLEXSHARES SEMIANNUAL REPORT |
Notes to the Financial Statements (cont.)
Fund | Fair Value | Net Realized Gains (Losses) | ||||||
FlexShares International Quality Dividend Defensive Index Fund | $ | 13,172,543 | $ | 320,505 | ||||
FlexShares International Quality Dividend Dynamic Index Fund | 21,087,508 | (1,693,816 | ) | |||||
FlexShares iBoxx3-Year Target Duration TIPS Index Fund | 459,996,323 | (4,136,079 | ) | |||||
FlexShares iBoxx5-Year Target Duration TIPS Index Fund | 415,815,948 | (4,909,444 | ) | |||||
FlexShares High Yield Value-Scored Bond Index Fund | 9,329,200 | (504,890 | ) | |||||
FlexShares Ready Access Variable Income Fund | 46,207,836 | (142,215 | ) | |||||
FlexShares Core Select Bond Fund | 3,580,742 | 60,129 |
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. New Accounting Pronouncements
On March 30, 2017, the FASB issued Accounting Standards Update (ASU)2017-08 “Premium Amortization on Purchased Callable Debt Securities”, which amends the amortization period for certain purchased callable debt securities held at premium shortening such period to the earliest call date. The new guidance requires an entity to amortize the premium on a callable debt security within its scope to the earliest call date, unless the guidance for considering estimated prepayments as described above is applied. If the call
option is not exercised at the earliest call date, the yield is reset to the effective yield using the payment terms of the security. If the security has more than one call date and the premium was amortized to a call price greater than the next call price, any excess of the amortized cost basis over the amount repayable at the next call date will be amortized to that date. If there are no other call dates, any excess of the amortized cost basis over the par amount will be amortized to maturity. Discounts on purchased callable debt securities will continue to be amortized to the security’s maturity date. The ASU2017-08 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Earlier application is permitted for all entities, including adoption in an interim period. If an entity early adopts the ASU in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. Management is still assessing the impact of the adoption of ASU2017-08 on the financial statements but does not expect it to have a material impact. The Funds have not early adopted ASU2017-08.
14. 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 ornon-recognized subsequent events relevant for financial statement disclosure.
FLEXSHARES SEMIANNUAL REPORT | 343 |
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, 2019.
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, 2019.
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 11/1/18 | Ending Account Value 04/30/19 | Expenses Paid During the Period* 11/1/18 - 04/30/19 | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Morningstar US Market Factor Tilt Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,084.70 | $ | 1.29 | 0.25 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.55 | $ | 1.25 | 0.25 | % | ||||||||
FlexShares® Morningstar Developed Marketsex-US Factor Tilt Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,053.20 | $ | 1.99 | 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 | $ | 1,124.70 | $ | 3.11 | 0.59 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.87 | $ | 2.96 | 0.59 | % |
344 | FLEXSHARES SEMIANNUAL REPORT |
Fund Expenses (cont.)
Beginning Account Value 11/1/18 | Ending Account Value 04/30/19 | Expenses Paid During the Period* 11/1/18 - 04/30/19 | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Currency Hedged Morningstar DMex-US Factor Tilt Index Fund(a) |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,071.20 | $ | 0.26 | 0.05 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.55 | $ | 0.25 | 0.05 | % | ||||||||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund(a) |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,135.80 | $ | 0.32 | 0.06 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.50 | $ | 0.30 | 0.06 | % | ||||||||
FlexShares® US Quality Large Cap Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,038.60 | $ | 1.62 | 0.32 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.21 | $ | 1.61 | 0.32 | % | ||||||||
FlexShares® STOXX® US ESG Impact Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,098.10 | $ | 1.66 | 0.32 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.21 | $ | 1.61 | 0.32 | % | ||||||||
FlexShares® STOXX® Global ESG Impact Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,088.00 | $ | 2.17 | 0.42 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.71 | $ | 2.11 | 0.42 | % | ||||||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund |
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Actual | $ | 1,000.00 | $ | 1,057.30 | $ | 2.35 | 0.46 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.51 | $ | 2.31 | 0.46 | % | ||||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,123.50 | $ | 2.47 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® Global Quality Real Estate Index Fund |
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Actual | $ | 1,000.00 | $ | 1,105.30 | $ | 2.35 | 0.45 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.56 | $ | 2.26 | 0.45 | % | ||||||||
FlexShares® Real Assets Allocation Index Fund(a) |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,116.00 | $ | 0.58 | 0.11 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.25 | $ | 0.55 | 0.11 | % | ||||||||
FlexShares® Quality Dividend Index Fund |
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Actual | $ | 1,000.00 | $ | 1,059.30 | $ | 1.89 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % | ||||||||
FlexShares® Quality Dividend Defensive Index Fund |
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Actual | $ | 1,000.00 | $ | 1,085.40 | $ | 1.91 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % |
FLEXSHARES SEMIANNUAL REPORT | 345 |
Fund Expenses (cont.)
Beginning Account Value 11/1/18 | Ending Account Value 04/30/19 | Expenses Paid During the Period* 11/1/18 - 04/30/19 | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Quality Dividend Dynamic Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,079.80 | $ | 1.91 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % | ||||||||
FlexShares® International Quality Dividend Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,067.80 | $ | 2.41 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® International Quality Dividend Defensive Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,060.00 | $ | 2.40 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® International Quality Dividend Dynamic Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,089.90 | $ | 2.44 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® iBoxx3-Year Target Duration TIPS Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,030.40 | $ | 0.91 | 0.18 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.90 | $ | 0.90 | 0.18 | % | ||||||||
FlexShares® iBoxx5-Year Target Duration TIPS Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,047.20 | $ | 0.91 | 0.18 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.90 | $ | 0.90 | 0.18 | % | ||||||||
FlexShares® Disciplined Duration MBS Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,039.60 | $ | 1.01 | 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 | $ | 1,059.00 | $ | 1.12 | 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 | $ | 1,107.90 | $ | 1.15 | 0.22 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.70 | $ | 1.10 | 0.22 | % | ||||||||
FlexShares® High Yield Value-Scored Bond Index Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.20 | $ | 1.88 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % | ||||||||
FlexShares® Ready Access Variable Income Fund |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,015.90 | $ | 1.25 | 0.25 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.55 | $ | 1.25 | 0.25 | % |
346 | FLEXSHARES SEMIANNUAL REPORT |
Fund Expenses (cont.)
Beginning Account Value 11/1/18 | Ending Account Value 04/30/19 | Expenses Paid During the Period* 11/1/18 - 04/30/19 | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Core Select Bond Fund(a) |
| |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,053.00 | $ | 0.87 | 0.17 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.95 | $ | 0.85 | 0.17 | % |
* | 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. |
FLEXSHARES SEMIANNUAL REPORT | 347 |
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:
Cyber Security and Operational Risk
Cyber security and operational risk is the risk that the Fund and its service providers may experience disruptions that arise from breaches in cyber security, human error, processing and communications errors, counterparty or third-party errors, technology or systems failures, any of which may have an adverse impact on the Fund. Failures or breaches of the electronic systems of the Fund, the Investment’ Adviser, distributor, and other service providers, market makers, Authorized Participants or the issuers of securities in which the Fund invests have the ability to cause disruptions and negatively impact the Fund’s business operations, potentially resulting in financial losses to the Fund and its shareholders.
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 astax-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. This is the risk that the Underlying Index’s calculation methodology or sources of information may not provide an accurate assessment of included issuers or correct valuation of securities, nor is the availability or timeliness of the production of the Index guaranteed.
348 | FLEXSHARES SEMIANNUAL REPORT |
Supplemental Information (cont.)
The following risks apply to each Fund, as disclosed:
Concentration Risk
Each of the Funds, except theFlexShares iBoxx3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx5-Year Target Duration TIPS Index 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.
Interest Rate/Maturity Risk
The FlexShares iBoxx3-Year Target Duration TIPS Index Fund, FlexShares iBoxx5-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 High Yield Value-Scored Bond Index Fund, FlexShares Ready Access Variable Income Fund, and the FlexShares Core Select Bond Fundare 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 a 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 theFlexShares 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. MLPs may also be sensitive to changes in interest rates and, during periods of interest rate volatility, may not provide attractive returns. 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, theafter-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 DMex-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 iBoxx3-Year Target Duration TIPS Index Fund, FlexShares iBoxx5-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 arenon-diversified series of the Trust, pursuant to the 1940 Act. The performance of these Funds 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.
FLEXSHARES SEMIANNUAL REPORT | 349 |
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 Fundare 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 andmid-sized companies.
Mid Cap Stock Risk
The FlexShares STOXX® US ESG Impact Index Fund and the FlexShares STOXX® Global ESG Impact Index Fundmay invest in stocks ofmid-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 Marketsex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DMex-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 more volatile 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 FlexSharesMorningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DMex-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
TheFlexShares STOXX® US ESG Impact Index Fund and the FlexShares STOXX® Global ESG Impact Index Fundare 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.
High Portfolio Turnover Risk
TheFlexShares STOXX® US ESG Impact Index Fund, FlexShares Ready Access Variable Income Fund, the FlexShares Core Select Bond Fund, the FlexShares iBoxx3-Year Target Duration TIPS Index Fund, the FlexShares Disciplined Duration MBS Index
350 | FLEXSHARES SEMIANNUAL REPORT |
Supplemental Information (cont.)
Fund, the FlexShares Credit-Scored US Long Corporate Bond Index Fund, and the FlexShares High Yield Value-Scored Bond Index Fundare subject to the risk that active and frequent trading of the Fund’s portfolio securities may result in increased transaction costs to the Fund, including brokerage commissions, dealermark-ups and other transaction costs, which could reduce the Fund’s return.
Global Natural Resources Industry Risk
TheFlexShares 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 orman-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.
Hedging Risk
The FlexShares Core Select Bond Fundis 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 Fundinvest 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.
Interest Rate Risk
The FlexShares STOXX® Global Broad Infrastructure Index Fund and the FlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund) are 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.
FLEXSHARES SEMIANNUAL REPORT | 351 |
Supplemental Information (cont.)
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 a 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 asnon-dividend paying stocks. A Fund’s performance during a broad market advance could suffer because dividend paying stocks may not experience the same capital appreciation asnon-dividend paying stocks.
Volatility Risk
The Fund is subject to the risk that the actual level of volatility experienced by a Fund may be greater or lower than the targeted overall volatility of the Fund’s Underlying Index. Although a Fund’s Underlying Index is designed to have a targeted overall volatility, there is no guarantee that it will have the targeted overall volatility. A 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 a 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 risk applies to theFlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund):
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 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.
The following risk applies to theFlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund)and the FlexShares STOXX® Global Broad Infrastructure Index Fund:
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.
352 | FLEXSHARES SEMIANNUAL REPORT |
Supplemental Information (cont.)
The following risk applies only to the FlexShares Currency Hedged Morningstar DMex-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 (or Underlying 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 DMex-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 ofnon-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 an 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 ofnon-U.S. dollar denominated securities held in its portfolio by investing in foreign currency forward contracts, which may includenon-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 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.
The following risks apply to theFlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares High Yield Value-Scored 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
FLEXSHARES SEMIANNUAL REPORT | 353 |
Supplemental Information (cont.)
the value of the Fund’s investments and its returns. Changes in an issuer’s credit rating or the market’ perception of an issuer’ creditworthiness may also adversely affect the value of the Fund’ investment in that issuer. The degree of credit risk depends on the issuer’s or counterparty’s financial condition and on the terms of the securities.
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.
The following risks apply to theFlexShares 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 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 theFlexShares Disciplined Duration MBS Index Fundand 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.
354 | FLEXSHARES SEMIANNUAL REPORT |
Supplemental Information (cont.)
The following risks apply tothe FlexShares High Yield Value-Scored Bond Index Fund:
Distressed Securities Risk
Distressed securities risk is the substantial risk of investing in distressed securities that is in addition to the risks of investing innon-investment grade securities generally. NTI defines securities issued by companies whose financial condition is troubled or uncertain and that may be involved in bankruptcy proceedings, reorganizations or financial restructurings as “distressed securities.” Distressed securities are speculative and involve a substantial risk that principal will not be paid. In addition, the Fund will generally not receive interest payments on the distressed securities and may incur costs to protect its investment. These securities may present a substantial risk of default. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal of or interest on its portfolio holdings. In any reorganization or liquidation proceeding relating to a portfolio company, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Distressed securities and any securities received in an exchange for such securities may be subject to restrictions on resale.
High Yield Securities Risk
High yield securities risk is the risk that the Fund will be subject to greater credit risk, price volatility and risk of loss than if it invested primarily in investment grade securities, which can adversely impact the Fund’s return and net asset value. High yield securities are considered highly speculative and are subject to increased risk of an issuer’s inability to make principal and interest payments. The Fund’s Underlying Index is designed to be comprised of securities with the potential for higher yields as compared to the overall high yield corporate bond market. As such, the Fund is expected to exhibit greater sensitivity to market fluctuations.
New Fund Risk
New Fund Risk is the risk that the Fund will not grow to or maintain an economically viable size, in which case it may experience greater tracking error to its Underlying Index than it otherwise would at higher asset levels, or it could ultimately liquidate without shareholder approval. The timing of such liquidation may not be favorable and could have negative tax consequences for shareholders. From time to time, an Authorized Participant, a third-party investor, the Investment Adviser or an affiliate of the Investment Adviser, may invest in the Fund and hold its investment for a specific period of time in order to facilitate commencement of the Fund’s operations or for the Fund to achieve size or scale. There can be no assurance that any such entity would not redeem its investment or that the size of the Fund would be maintained at such levels, which could negatively impact the Fund. The Fund’s distributor does not maintain a secondary market in the shares.
Substantial Volatility Risk
Substantial volatility riskis the risk that the value of the securities in the Fund’s portfolio may fluctuate, sometimes rapidly and unpredictably at a greater level than the overall market. There is a risk that the Fund could have substantial volatility.
Value Score Risk
Value score risk is the risk that the Fund’s investment in companies whose securities are believed to be undervalued will not appreciate in value as anticipated. Although the Underlying Index is designed to measure a portfolio of bonds of companies with the potential for higher yields and less risk of insolvency relative to the Parent Index, there is no assurance that the Underlying Index or Fund will be comprised of such securities. Accordingly, the Fund may be subject to greater credit risk, price volatility and risk of loss relative to the Parent Index.
FLEXSHARES SEMIANNUAL REPORT | 355 |
Supplemental Information (cont.)
The following risk applies to theFlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Marketsex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DMex-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, 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/ornon-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. andnon-U.S. financial sectors can be significantly affected by changes in interest rates, government regulation, the rate of corporate and consumer debt defaulted, price competitions and the availability and cost of capital funds. 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. andnon-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.
The following risk applies to theFlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, the FlexShares Quality Dividend Dynamic Index Fund, FlexShares STOXX US ESG Impact Index Fund and 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.
356 | FLEXSHARES SEMIANNUAL REPORT |
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 FormN-Q (or as an exhibit to its reports on FormN-Q’s successor, FormN-PORT). The Funds’ FormsN-Q and FormsN-PORT are available on the SEC’s Web site at www.sec.gov.
Proxy Voting
FlexShares® Trust Proxy Voting Policies and Procedures are available upon request and without charge by calling1-855-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 the12-month period ended June 30 is available upon request and without charge by calling1-855-FLEXETF(1-855-353-9383) or by visiting the SEC’s website at www.sec.gov.
FLEXSHARES SEMIANNUAL REPORT | 357 |
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 Marketsex-US Factor Tilt IndexSM, Morningstar® Emerging Markets Factor Tilt IndexSM, Morningstar® Developed Marketsex-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 iBoxx3-Year Target Duration TIPS Index and iBoxx5-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 iBoxx3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx5-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, Northern Trust Credit-Scored US Corporate Bond IndexSM, Northern Trust Credit-Scored US Long Corporate Bond IndexSM, Northern Trust Real Assets Allocation IndexSM, Northern Trust High Yield US Corporate Bond IndexSM, and Northern Trust High Yield Value-Scored US Corporate Bond IndexSM are service marks of NTI and have been licensed for use by FlexShares Trust. The ICE® BofAML® Constrained Duration US Mortgage Backed Securities IndexSM are trademarks of ICE Data Indices, LLC or its affiliates (“ICE”) and have been licensed for use by NTI.
FS00139-0619
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.
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 FormN-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 forClosed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities byClosed-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 Rule30a-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 Rule30a-3(b) under the 1940 Act and Rules13a-15(b) or15d-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 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. Disclosure of Securities Lending Activities forClosed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Not applicable for this reporting period. |
(a)(2) | Certifications pursuant to Rule30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications required by Rule30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto. |
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 8, 2019 |
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 8, 2019 | ||||
By: | /s/ Randal Rein | |||
Randal Rein | ||||
Treasurer and Principal Financial Officer | ||||
July 8, 2019 |