Table of Contents

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FlexShares® Trust

 

Semiannual Report

April 30, 2022

 

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Table of Contents

 

 

 
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Table of Contents

 

Statements of Assets and Liabilities

     2  

Statements of Operations

     10  

Statements of Changes in Net Assets

     18  

Financial Highlights

     34  

Schedules of Investments

     67  

FlexShares® US Quality Low Volatility Index Fund

     67  

FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund

     71  

FlexShares® Emerging Markets Quality Low Volatility Index Fund

     78  

FlexShares® Morningstar US Market Factor Tilt Index Fund

     83  

FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund

     125  

FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund

     172  

FlexShares® US Quality Large Cap Index Fund

     221  

FlexShares® STOXX® US ESG Select Index Fund

     226  

FlexShares® STOXX® Global ESG Select Index Fund

     233  

FlexShares® ESG  & Climate US Large Cap Core Index Fund

     248  

FlexShares® ESG  & Climate Developed Markets ex-US Core Index Fund

     253  

FlexShares® ESG  & Climate Emerging Markets Core Index Fund

     262  

FlexShares® Morningstar Global Upstream Natural Resources Index Fund

     268  

FlexShares® STOXX® Global Broad Infrastructure Index Fund

     275  

FlexShares® Global Quality Real Estate Index Fund

     282  

FlexShares® Real Assets Allocation Index Fund

     287  

FlexShares® Quality Dividend Index Fund

     288  

FlexShares® Quality Dividend Defensive Index Fund

     293  

FlexShares® Quality Dividend Dynamic Index Fund

     298  

FlexShares® International Quality Dividend Index Fund

     305  

FlexShares® International Quality Dividend Defensive Index Fund

     310  

FlexShares® International Quality Dividend Dynamic Index Fund

     317  

FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund

     324  

FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund

     325  

FlexShares® Disciplined Duration MBS Index Fund

     326  

FlexShares® Credit-Scored US Corporate Bond Index Fund

     331  

FlexShares® Credit-Scored US Long Corporate Bond Index Fund

     347  

FlexShares® High Yield Value-Scored Bond Index Fund

     356  

FlexShares® ESG  & Climate High Yield Corporate Core Index Fund

     375  

FlexShares® ESG  & Climate Investment Grade Corporate Core Index Fund

     390  

FlexShares® Ready Access Variable Income Fund

     399  

FlexShares® Core Select Bond Fund

     412  

Notes to the Financial Statements

     415  

Fund Expenses

     463  

Liquidity Risk Management Program

     467  

Approval of Advisory Agreement

     468  

Supplemental Information

     471  

For More Information

     484  

 

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Table of Contents

 

FlexShares® Trust

Statements of Assets and Liabilities April 30, 2022 (Unaudited)

 

 

     FlexShares®
US Quality
Low Volatility
Index Fund
     FlexShares®
Developed Markets ex-US
Quality Low Volatility
Index Fund
     FlexShares®
Emerging Markets
Quality Low Volatility
Index Fund
    FlexShares®
Morningstar US
Market Factor Tilt
Index Fund
 

ASSETS

 

Securities, at cost

   $ 140,491,034      $ 66,363,409      $ 14,445,142     $ 942,368,425  

Affiliate securities, at cost

                         457,315  

Securities Lending Reinvestments, at cost

            968,888              224,504,072  
  

 

 

 

Securities, at value†

     159,611,468        67,897,986        14,728,604       1,487,531,138  

Affiliate securities, at value

                         639,322  

Securities Lending Reinvestments, at value

            968,888              224,509,853  

Cash

     1,915,287        296,153        140,681       8,181,959  

Cash segregated at broker*

     5,266        121,465        25,220       889,559  

Foreign cash††

            494,578        75,429        

Restricted cash**

                          

Due from Authorized Participant

                          

Unrealized appreciation on forward foreign currency contracts

            46,852               

Receivables:

          

Dividends and interest

     109,539        497,488        25,636       951,748  

Securities lending income

     755        663              38,534  

Capital shares issued

                          

Investment adviser

     601        298        56       6,657  

Securities sold

                          

Variation margin on futures contracts

                   1,456        
  

 

 

 

Total Assets

     161,642,916        70,324,371        14,997,082       1,722,748,770  
  

 

 

 

LIABILITIES

          

Cash overdraft

                          

Unrealized depreciation on forward foreign currency contracts

            19,702        7        

Due to brokers

     36,890                      

Payables:

          

Cash collateral received from securities loaned

            968,888              224,498,570  

Deferred compensation (Note 7)

     6,668        3,769        670       160,443  

Investment advisory fees (Note 4)

     30,557        19,272        4,981       326,831  

Trustee fees (Note 7)

     1,318        649        139       15,215  

Securities purchased

                         302,616  

Deferred non-US capital gains taxes

                   26,014        

Due to Authorized Participant

                          

Variation margin on futures contracts

     44,808        44,736              452,746  

Capital shares redeemed

                         1,708  

Other

     700        2,250              1,500  
  

 

 

 

Total Liabilities

     120,941        1,059,266        31,811       225,759,629  
  

 

 

 

Net Assets

   $ 161,521,975      $ 69,265,105      $ 14,965,271     $ 1,496,989,141  
  

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

   $ 138,978,179      $ 68,069,095      $ 15,170,847     $ 912,802,399  

Distributable earnings (loss)

     22,543,796        1,196,010        (205,576     584,186,742  
  

 

 

 

Net Assets

   $ 161,521,975      $ 69,265,105      $ 14,965,271     $ 1,496,989,141  
  

 

 

 

Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)

     3,100,001        2,700,001        600,001       9,400,001  

Net Asset Value

   $ 52.10      $ 25.65      $ 24.94     $ 159.25  

† Securities on loan, at value

   $ 8,082,484      $ 1,820,532      $     $ 273,615,671  

†† Cost of foreign cash

   $      $ 509,148      $ 75,724     $  

 

*

Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

 

**

Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

 

See Accompanying Notes to the Financial Statements.

 

2    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Assets and Liabilities (cont.)

 

 

     FlexShares®
Morningstar Developed
Markets ex-US Factor
Tilt Index Fund
    FlexShares®
Morningstar Emerging
Markets Factor Tilt
Index Fund
    FlexShares®
US Quality
Large Cap
Index Fund
     FlexShares®
STOXX® US
ESG Select
Index Fund
 

ASSETS

 

Securities, at cost

   $ 497,335,966     $ 240,653,989     $ 121,600,985      $ 171,124,663  

Affiliate securities, at cost

                        126,155  

Securities Lending Reinvestments, at cost

     20,154,710       1,939,381              248,877  
  

 

 

 

Securities, at value†

     541,709,255       268,198,880       138,992,889        180,067,420  

Affiliate securities, at value

                        112,840  

Securities Lending Reinvestments, at value

     20,154,710       1,939,381              248,877  

Cash

     2,907,819       152,492       1,706,009        667,652  

Cash segregated at broker*

     1,303,381       155,851       295,182        95,953  

Foreign cash††

     4,620,790       348,121               

Restricted cash**

                         

Due from Authorized Participant

                         

Unrealized appreciation on forward foreign currency contracts

     145,305       34,473               

Receivables:

         

Dividends and interest

     5,222,318       737,952       106,364        156,018  

Securities lending income

     38,309       12,346       1,101        762  

Capital shares issued

                 1,186,821         

Investment adviser

     2,613       1,414       598        846  

Securities sold

     10,873,352       66,126               

Variation margin on futures contracts

     130,532                     
  

 

 

 

Total Assets

     587,108,384       271,647,036       142,288,964        181,350,368  
  

 

 

 

LIABILITIES

 

Cash overdraft

                         

Unrealized depreciation on forward foreign currency contracts

     264,535       8,641               

Due to brokers

                         

Payables:

         

Cash collateral received from securities loaned

     20,154,710       1,939,381              248,877  

Deferred compensation (Note 7)

     91,412       45,819       6,663        8,145  

Investment advisory fees (Note 4)

     187,985       138,090       38,806        50,862  

Trustee fees (Note 7)

     5,706       2,992       1,164        1,587  

Securities purchased

     3,877       69       1,162,180         

Deferred non-US capital gains taxes

           824,320               

Due to Authorized Participant

           3,469               

Variation margin on futures contracts

           29,584       56,016        49,363  

Capital shares redeemed

     12,872,599                     

Other

     13,500       50,000       2,500         
  

 

 

 

Total Liabilities

     33,594,324       3,042,365       1,267,329        358,834  
  

 

 

 

Net Assets

   $ 553,514,060     $ 268,604,671     $ 141,021,635      $ 180,991,534  
  

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

   $ 611,403,371     $ 302,405,456     $ 125,063,483      $ 167,061,361  

Distributable earnings (loss)

     (57,889,311     (33,800,785     15,958,152        13,930,173  
  

 

 

 

Net Assets

   $ 553,514,060     $ 268,604,671     $ 141,021,635      $ 180,991,534  
  

 

 

 

Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)

     8,600,001       5,000,001       3,075,001        1,825,001  

Net Asset Value

   $ 64.36     $ 53.72     $ 45.86      $ 99.17  

† Securities on loan, at value

   $ 79,077,868     $ 9,267,693     $ 10,583,830      $ 3,994,982  

†† Cost of foreign cash

   $ 4,790,050     $ 335,967     $      $  

 

*

Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

 

**

Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

 

See Accompanying Notes to the Financial Statements.

 

   FLEXSHARES SEMIANNUAL REPORT     3  


Table of Contents

 

 

Statements of Assets and Liabilities (cont.)

 

 

     FlexShares®
STOXX®
Global ESG
Select Index
Fund
    FlexShares®
ESG & Climate US
Large Cap Core
Index Fund
    FlexShares®
ESG & Climate
Developed
Markets ex-US Core
Index Fund
    FlexShares®
ESG & Climate
Emerging
Markets Core
Index Fund
 

ASSETS

 

Securities, at cost

   $ 141,113,185     $ 13,715,807     $ 19,041,956     $ 4,943,860  

Affiliate securities, at cost

                        

Securities Lending Reinvestments, at cost

     2,134,066                    
  

 

 

 

Securities, at value†

     162,192,893       12,976,705       17,759,098       4,831,794  

Affiliate securities, at value

                        

Securities Lending Reinvestments, at value

     2,134,066                    

Cash

     765,397       86,523       119,601       62,950  

Cash segregated at broker*

     175,072       200       41,040       6,998  

Foreign cash††

     626,875       1,022       67,947       1,363  

Restricted cash**

     429 (1)            11,524       441,975  

Due from Authorized Participant

                        

Unrealized appreciation on forward foreign currency contracts

     48,271             11,248        

Receivables:

        

Dividends and interest

     482,476       7,047       57,615       1,394  

Securities lending income

     2,330                    

Capital shares issued

                        

Investment adviser

     815             44       2  

Securities sold

     4,490,739             271        

Variation margin on futures contracts

                        
  

 

 

 

Total Assets

     170,919,363       13,071,497       18,068,388       5,346,476  
  

 

 

 

LIABILITIES

 

Cash overdraft

                        

Unrealized depreciation on forward foreign currency contracts

     12,365             12,994        

Due to brokers

                        

Payables:

        

Cash collateral received from securities loaned

     2,134,495                    

Deferred compensation (Note 7)

     9,483       30       60        

Investment advisory fees (Note 4)

     59,538       722       1,661       240  

Trustee fees (Note 7)

     1,615       10       46       8  

Securities purchased

     4,876,451       27,193       79        

Deferred non-US capital gains taxes

                       34  

Due to Authorized Participant

                 11,524       441,975  

Variation margin on futures contracts

     72,291       2,548       7,383       1,545  

Capital shares redeemed

                        

Other

     13,000       2,500       13,500        
  

 

 

 

Total Liabilities

     7,179,238       33,003       47,247       443,802  
  

 

 

 

Net Assets

   $ 163,740,125     $ 13,038,494     $ 18,021,141     $ 4,902,674  
  

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

   $ 135,703,467     $ 13,788,265     $ 19,322,886     $ 5,000,000  

Distributable earnings (loss)

     28,036,658       (749,771     (1,301,745     (97,326
  

 

 

 

Net Assets

   $ 163,740,125     $ 13,038,494     $ 18,021,141     $ 4,902,674  
  

 

 

 

Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)

     1,250,001       275,000       400,000       100,000  

Net Asset Value

   $ 130.99     $ 47.41     $ 45.05     $ 49.03  

† Securities on loan, at value

   $ 9,543,032     $     $     $  

†† Cost of foreign cash

   $ 644,419     $ 1,051     $ 69,511     $ 1,376  

 

*

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.

 

(1) 

Uninvested cash collateral received for securities on loan in the amount of $429.

 

See Accompanying Notes to the Financial Statements.

 

4    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

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

   $ 6,127,170,314      $ 2,321,364,371     $ 369,596,680      $  

Affiliate securities, at cost

                         51,938,053  

Securities Lending Reinvestments, at cost

     202,359,834        38,469,275       6,052,675         
  

 

 

 

Securities, at value†

     8,090,675,445        2,520,492,194       405,054,763         

Affiliate securities, at value

                         52,218,833  

Securities Lending Reinvestments, at value

     202,364,005        38,469,275       6,052,675         

Cash

     21,917,643        5,818,003       11,047,912        2,130  

Cash segregated at broker*

     4,831,220        3,299,588       1,401,965         

Foreign cash††

     7,844,669        5,340,092       2,056,825         

Restricted cash**

     80,357        472,628 (1)              

Due from Authorized Participant

     117,365                      

Unrealized appreciation on forward foreign currency contracts

     2,243,935        1,093,330       13,046         

Receivables:

          

Dividends and interest

     21,566,199        6,316,072       698,897         

Securities lending income

     48,761        34,334       5,302         

Capital shares issued

     13,500,535                      

Investment adviser

     24,031        10,359       1,795        138  

Securities sold

     4,433,543        3,710,928       13,394        1,348,611  

Variation margin on futures contracts

                          
  

 

 

 

Total Assets

     8,369,647,708        2,585,056,803       426,346,574        53,569,712  
  

 

 

 

LIABILITIES

 

Cash overdraft

                          

Unrealized depreciation on forward foreign currency contracts

     2,246,482        1,154,235       84,549         

Due to brokers

                          

Payables:

          

Cash collateral received from securities loaned

     202,348,694        38,480,637       6,052,675         

Deferred compensation (Note 7)

     568,944        168,757       31,415        1,008  

Investment advisory fees (Note 4)

     3,115,096        1,022,232       163,452        5,503  

Trustee fees (Note 7)

     40,060        22,364       3,515        116  

Securities purchased

     13,176,214        7,688              1,357,358  

Deferred non-US capital gains taxes

     1,204,319        1,413,613               

Due to Authorized Participant

     80,357        1,465,300               

Variation margin on futures contracts

     1,580,640        641,389       314,712         

Capital shares redeemed

     4,514,160        2,729,005               

Other

     49,500        10,000       2,000         
  

 

 

 

Total Liabilities

     228,924,466        47,115,220       6,652,318        1,363,985  
  

 

 

 

Net Assets

   $ 8,140,723,242      $ 2,537,941,583     $ 419,694,256      $ 52,205,727  
  

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

   $ 7,051,246,245      $ 2,458,245,199     $ 394,147,294      $ 52,232,038  

Distributable earnings (loss)

     1,089,476,997        79,696,384       25,546,962        (26,311
  

 

 

 

Net Assets

   $ 8,140,723,242      $ 2,537,941,583     $ 419,694,256      $ 52,205,727  
  

 

 

 

Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)

     180,900,001        46,500,001       6,300,001        1,575,001  

Net Asset Value

   $ 45.00      $ 54.58     $ 66.62      $ 33.15  

† Securities on loan, at value

   $ 543,174,950      $ 130,306,071     $ 42,566,894      $  

†† Cost of foreign cash

   $ 8,179,562      $ 5,419,233     $ 2,116,480      $  

 

*

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.

 

(1) 

Uninvested cash collateral received for securities on loan in the amount of $11,362.

 

See Accompanying Notes to the Financial Statements.

 

   FLEXSHARES SEMIANNUAL REPORT     5  


Table of Contents

 

 

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

   $ 1,327,698,109      $ 337,126,729      $ 17,097,999      $ 563,553,925  

Affiliate securities, at cost

                           

Securities Lending Reinvestments, at cost

     147,554,010        26,521,823        228,520        15,101,779  
  

 

 

 

Securities, at value†

     1,617,736,640        389,915,667        20,410,215        553,427,055  

Affiliate securities, at value

                           

Securities Lending Reinvestments, at value

     147,555,458        26,521,823        228,520        15,101,779  

Cash

     7,960,699        4,608,540        211,300        6,088,953  

Cash segregated at broker*

     776,002        532,538        44,538        1,512,064  

Foreign cash††

                          4,777,993  

Restricted cash**

                           

Due from Authorized Participant

                           

Unrealized appreciation on forward foreign currency contracts

                          324,486  

Receivables:

           

Dividends and interest

     2,054,001        492,518        27,479        4,520,829  

Securities lending income

     39,908        9,476        487        28,562  

Capital shares issued

                           

Investment adviser

     6,685        1,787        93        2,508  

Securities sold

                   2,217         

Variation margin on futures contracts

                          168,649  
  

 

 

 

Total Assets

     1,776,129,393        422,082,349        20,924,849        585,952,878  
  

 

 

 

LIABILITIES

 

Cash overdraft

                           

Unrealized depreciation on forward foreign currency contracts

                          471,165  

Due to brokers

                           

Payables:

           

Cash collateral received from securities loaned

     147,549,869        26,521,823        228,520        15,101,779  

Deferred compensation (Note 7)

     178,024        43,153        6,093        73,676  

Investment advisory fees (Note 4)

     517,623        129,025        6,588        227,880  

Trustee fees (Note 7)

     13,813        3,886        189        5,339  

Securities purchased

                          10,583  

Deferred non-US capital gains taxes

                           

Due to Authorized Participant

                           

Variation margin on futures contracts

     340,842        164,200        8,960         

Capital shares redeemed

                           

Other

     6,000        4,250        750        8,500  
  

 

 

 

Total Liabilities

     148,606,171        26,866,337        251,100        15,898,922  
  

 

 

 

Net Assets

   $ 1,627,523,222      $ 395,216,012      $ 20,673,749      $ 570,053,956  
  

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

   $ 1,313,665,811      $ 335,213,884      $ 16,700,838      $ 724,658,056  

Distributable earnings (loss)

     313,857,411        60,002,128        3,972,911        (154,604,100
  

 

 

 

Net Assets

   $ 1,627,523,222      $ 395,216,012      $ 20,673,749      $ 570,053,956  
  

 

 

 

Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)

     29,150,001        7,400,001        350,001        25,000,001  

Net Asset Value

   $ 55.83      $ 53.41      $ 59.07      $ 22.80  

† Securities on loan, at value

   $ 195,375,435      $ 37,545,141      $ 1,202,024      $ 52,163,598  

†† Cost of foreign cash

   $      $      $      $ 4,859,556  

 

*

Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

 

**

Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

 

See Accompanying Notes to the Financial Statements.

 

6    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Assets and Liabilities (cont.)

 

 

     FlexShares®
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

   $ 60,098,632     $ 79,879,120     $ 2,166,008,617     $ 823,613,215  

Affiliate securities, at cost

                        

Securities Lending Reinvestments, at cost

     1,465,336       1,766,975              
  

 

 

 

Securities, at value†

     61,300,121       75,802,678       2,151,600,078       811,141,771  

Affiliate securities, at value

                        

Securities Lending Reinvestments, at value

     1,465,336       1,766,975              

Cash

     195,829       966,768       491,403       158,433  

Cash segregated at broker*

     134,083       188,634              

Foreign cash††

     523,209       232,341              

Restricted cash**

                        

Due from Authorized Participant

                        

Unrealized appreciation on forward foreign currency contracts

     50,107       36,125              

Receivables:

        

Dividends and interest

     583,722       528,137       2,427,238       1,127,970  

Securities lending income

     3,763       6,056       3,434       3,703  

Capital shares issued

                       5,306,928  

Investment adviser

     283       360       3,914       2,516  

Securities sold

     342,374             1,754,393        

Variation margin on futures contracts

                        
  

 

 

 

Total Assets

     64,598,827       79,528,074       2,156,280,460       817,741,321  
  

 

 

 

LIABILITIES

 

Cash overdraft

                        

Unrealized depreciation on forward foreign currency contracts

     3,639       4,996              

Due to brokers

                        

Payables:

        

Cash collateral received from securities loaned

     1,465,336       1,766,975              

Deferred compensation (Note 7)

     9,781       5,951       259,068       94,231  

Investment advisory fees (Note 4)

     25,907       31,245       306,582       120,362  

Trustee fees (Note 7)

     632       632       9,102       5,541  

Securities purchased

                 1,753,133       5,308,233  

Deferred non-US capital gains taxes

           28,216              

Due to Authorized Participant

     330,089                    

Variation margin on futures contracts

     42,159       48,868              

Capital shares redeemed

                        

Other

     3,500       3,500              
  

 

 

 

Total Liabilities

     1,881,043       1,890,383       2,327,885       5,528,367  
  

 

 

 

Net Assets

   $ 62,717,784     $ 77,637,691     $ 2,153,952,575     $ 812,212,954  
  

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

   $ 84,671,666     $ 95,694,025     $ 2,190,678,485     $ 818,744,665  

Distributable earnings (loss)

     (21,953,882     (18,056,334     (36,725,910     (6,531,711
  

 

 

 

Net Assets

   $ 62,717,784     $ 77,637,691     $ 2,153,952,575     $ 812,212,954  
  

 

 

 

Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)

     2,900,001       2,900,001       83,804,000       30,600,001  

Net Asset Value

   $ 21.63     $ 26.77     $ 25.70     $ 26.54  

† Securities on loan, at value

   $ 5,080,629     $ 5,315,295     $ 196,220,377     $ 97,755,280  

†† Cost of foreign cash

   $ 530,158     $ 237,430     $     $  

 

*

Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30.

 

**

Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units.

 

See Accompanying Notes to the Financial Statements.

 

   FLEXSHARES SEMIANNUAL REPORT     7  


Table of Contents

 

 

Statements of Assets and Liabilities (cont.)

 

 

     FlexShares®
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

   $ 109,644,947     $ 264,573,693     $ 56,021,111     $ 920,190,750  

Affiliate securities, at cost

                        

Securities Lending Reinvestments, at cost

                        
  

 

 

 

Securities, at value†

     102,737,009       242,634,200       46,122,793       852,591,488  

Affiliate securities, at value

                        

Securities Lending Reinvestments, at value

                        

Cash

     4,516,197       3,046,551       604,761       14,769,186  

Cash segregated at broker*

                        

Foreign cash††

                        

Restricted cash**

                        

Due from Authorized Participant

                        

Unrealized appreciation on forward foreign currency contracts

                        

Receivables:

        

Dividends and interest

     299,285       2,176,164       577,397       15,988,229  

Securities lending income

                        

Capital shares issued

                        

Investment adviser

     419       1,219       238       2,284  

Securities sold

     7,422,473       10,293,639       2,940,480       72,884,924  

Variation margin on futures contracts

                        
  

 

 

 

Total Assets

     114,975,383       258,151,773       50,245,669       956,236,111  
  

 

 

 

LIABILITIES

 

Cash overdraft

                        

Unrealized depreciation on forward foreign currency contracts

                        

Due to brokers

                        

Payables:

        

Cash collateral received from securities loaned

                        

Deferred compensation (Note 7)

     7,517       16,117       3,628       14,990  

Investment advisory fees (Note 4)

     18,182       45,715       8,885       262,802  

Trustee fees (Note 7)

     981       2,927       545       3,272  

Securities purchased

     6,905,561       11,942,357       3,256,159       79,449,553  

Deferred non-US capital gains taxes

                        

Due to Authorized Participant

                        

Variation margin on futures contracts

                        

Capital shares redeemed

                        

Other

     1,600       1,500             6,500  
  

 

 

 

Total Liabilities

     6,933,841       12,008,616       3,269,217       79,737,117  
  

 

 

 

Net Assets

   $ 108,041,542     $ 246,143,157     $ 46,976,452     $ 876,498,994  
  

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

   $ 122,095,074     $ 272,242,675     $ 57,927,253     $ 953,344,046  

Distributable earnings (loss)

     (14,053,532     (26,099,518     (10,950,801     (76,845,052
  

 

 

 

Net Assets

   $ 108,041,542     $ 246,143,157     $ 46,976,452     $ 876,498,994  
  

 

 

 

Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)

     5,050,001       5,100,001       1,000,001       19,750,001  

Net Asset Value

   $ 21.39     $ 48.26     $ 46.98     $ 44.38  

† 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  


Table of Contents

 

 

Statements of Assets and Liabilities (cont.)

 

 

     FlexShares®
ESG & Climate
High Yield
Corporate Core
Index Fund
    FlexShares®
ESG & Climate
Investment Grade
Corporate Core
Index Fund
    FlexShares®
Ready
Access
Variable
Income Fund
    FlexShares®
Core Select
Bond Fund
 

ASSETS

 

Securities, at cost

   $ 28,972,681     $ 50,547,346     $ 649,815,804     $ 99,696,307  

Affiliate securities, at cost

                       55,521,156  

Securities Lending Reinvestments, at cost

                       33,593,976  
  

 

 

 

Securities, at value†

     26,237,737       43,698,860       644,113,868       91,442,997  

Affiliate securities, at value

                       51,571,715  

Securities Lending Reinvestments, at value

                       33,593,976  

Cash

     645,872       579,968       91,226,039       1,010,570  

Cash segregated at broker*

                        

Foreign cash††

                        

Restricted cash**

                        

Due from Authorized Participant

                        

Unrealized appreciation on forward foreign currency contracts

                        

Receivables:

        

Dividends and interest

     406,664       391,929       2,686,327        

Securities lending income

                       7,137  

Capital shares issued

                        

Investment adviser

     143       181       1,017       463  

Securities sold

     887,087       1,104,000              

Variation margin on futures contracts

                       28,144  
  

 

 

 

Total Assets

     28,177,503       45,774,938       738,027,251       177,655,002  
  

 

 

 

LIABILITIES

 

Cash overdraft

                        

Unrealized depreciation on forward foreign currency contracts

                        

Due to brokers

                       18,191  

Payables:

        

Cash collateral received from securities loaned

                       33,593,976  

Deferred compensation (Note 7)

     225       341       33,164       6,534  

Investment advisory fees (Note 4)

     4,695       4,526       122,953       25,672  

Trustee fees (Note 7)

     449       359       2,118       1,038  

Securities purchased

     1,216,663       964,505       89,645,769        

Deferred non-US capital gains taxes

                        

Due to Authorized Participant

                        

Variation margin on futures contracts

                        

Capital shares redeemed

                        

Other

           500       4,725        
  

 

 

 

Total Liabilities

     1,222,032       970,231       89,808,729       33,645,411  
  

 

 

 

Net Assets

   $ 26,955,471     $ 44,804,707     $ 648,218,522     $ 144,009,591  
  

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

   $ 30,234,795     $ 52,238,513     $ 654,233,797     $ 160,387,482  

Distributable earnings (loss)

     (3,279,324     (7,433,806     (6,015,275     (16,377,891
  

 

 

 

Net Assets

   $ 26,955,471     $ 44,804,707     $ 648,218,522     $ 144,009,591  
  

 

 

 

Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value)

     600,000       1,050,000       8,675,001       6,175,001  

Net Asset Value

   $ 44.93     $ 42.67     $ 74.72     $ 23.32  

† Securities on loan, at value

   $     $     $     $ 32,557,764  

†† 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     9  


Table of Contents

 

FlexShares® Trust

Statements of Operations

For the six months ended April 30, 2022 (Unaudited)

 

 

     FlexShares®
US Quality
Low Volatility
Index Fund
    FlexShares®
Developed
Markets ex-US
Quality Low Volatility
Index Fund
    FlexShares®
Emerging
Markets Quality
Low Volatility
Index Fund
    FlexShares®
Morningstar
US Market
Factor Tilt
Index Fund
 

INVESTMENT INCOME

 

Dividend income

   $ 1,193,609     $ 1,145,160     $ 166,485     $ 13,272,117  

Income from non-cash dividends

                 13,562        

Dividend income received from affiliate

                       9,423  

Interest income

     130                    

Securities lending income (net of fees) (Note 2)

     6,064       3,009             212,126  

Foreign withholding tax on dividends

     (4,353     (109,880     (13,852     (4,008

Foreign withholding tax on interest

                        
  

 

 

 

Total Investment Income

     1,195,450       1,038,289       166,195       13,489,658  
  

 

 

 

EXPENSES

 

Deferred compensation (Note 7)

     1,361       614       123       13,598  

Investment advisory fees

     180,812       121,016       30,864       2,043,187  

Trustee fees (Note 7)

     4,653       2,188       451       48,803  

Other expenses (Note 4)

                       157  
  

 

 

 

Total Gross Expenses Before Fees Reimbursed

     186,826       123,818       31,438       2,105,745  
  

 

 

 

Less:

 

Investment advisory fees reimbursed (Note 4)

     (2,033     (1,004     (206     (23,798
  

 

 

 

Total Net Expenses

     184,793       122,814       31,232       2,081,947  
  

 

 

 

Net Investment Income (Loss)

     1,010,657       915,475       134,963       11,407,711  
  

 

 

 

NET REALIZED GAIN (LOSS) FROM:

 

Transactions in investment securities of affiliated issuers

                       20,169  

Transactions in investment securities

     (1,551,542     (1,323,627     (83,332 )(1)      (1,069,726

In-kind redemptions on investments in affiliated securities

                       13,626  

In-kind redemptions on investments in securities

     5,744,045       1,241,765             54,260,141  

Expiration or closing of futures contracts

     (69,400     (119,449     (31,753     (314,133

Settlement of forward foreign currency contracts

           25,132       72        

Foreign currency transactions

           (3,822     (20,474      
  

 

 

 

Net Realized Gain (Loss)

     4,123,103       (180,001     (135,487     52,910,077  
  

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:

 

Investments in securities

     (11,715,147     (6,053,559     (733,385 )(2)      (237,064,958 )(3) 

Securities lending

                       5,737  

Futures contracts

     (48,083     (21,986     3,067       (789,471

Forward foreign currency contracts

           21,933       (9      

Translation of other assets and liabilities denominated in foreign currencies

           (40,781     898        
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation)

     (11,763,230     (6,094,393     (729,429     (237,848,692
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     (7,640,127     (6,274,394     (864,916     (184,938,615
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (6,629,470   $ (5,358,919   $ (729,953   $ (173,530,904
  

 

 

 

 

(1) 

Net of non-US capital gains tax of $(19,367).

 

(2) 

Net of deferred non-US capital gains tax of $26,014.

 

(3) 

Includes $(163,655) change in unrealized depreciation on investments in affiliates.

 

See Accompanying Notes to the Financial Statements.

 

10    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Operations (cont.)

 

 

     FlexShares®
Morningstar
Developed
Markets ex-US
Factor Tilt
Index Fund
    FlexShares®
Morningstar Emerging
Markets Factor Tilt
Index Fund
    FlexShares®
US Quality
Large Cap
Index Fund
    FlexShares®
STOXX® US
ESG Select
Index Fund
 

INVESTMENT INCOME

 

Dividend income

   $ 10,405,483     $ 4,418,994     $ 1,071,545     $ 1,433,150  

Income from non-cash dividends

           253,587              

Dividend income received from affiliate

                        

Interest income

     22                    

Securities lending income (net of fees) (Note 2)

     243,739       89,117       5,511       2,600  

Foreign withholding tax on dividends

     (1,042,971     (537,647     (166      

Foreign withholding tax on interest

           (4            
  

 

 

 

Total Investment Income

     9,606,273       4,224,047       1,076,890       1,435,750  
  

 

 

 

EXPENSES

 

Deferred compensation (Note 7)

     4,991       2,567       1,197       1,572  

Investment advisory fees

     1,196,702       925,867       229,134       308,509  

Trustee fees (Note 7)

     18,279       9,449       4,143       5,535  

Other expenses (Note 4)

                        
  

 

 

 

Total Gross Expenses Before Fees Reimbursed

     1,219,972       937,883       234,474       315,616  
  

 

 

 

Less:

 

Investment advisory fees reimbursed (Note 4)

     (9,134     (4,940     (1,948     (2,600
  

 

 

 

Total Net Expenses

     1,210,838       932,943       232,526       313,016  
  

 

 

 

Net Investment Income (Loss)

     8,395,435       3,291,104       844,364       1,122,734  
  

 

 

 

NET REALIZED GAIN (LOSS) FROM:

 

Transactions in investment securities of affiliated issuers

                        

Transactions in investment securities

     7,317,415       (4,821,059     (653,740     312,817  

In-kind redemptions on investments in affiliated securities

                        

In-kind redemptions on investments in securities

     4,531,591       1,021,235       1,459,816       6,876,076  

Expiration or closing of futures contracts

     (690,178     (557,490     (96,634     (10,571

Settlement of forward foreign currency contracts

     (282,644     43,407              

Foreign currency transactions

     (247,224     (29,927            
  

 

 

 

Net Realized Gain (Loss)

     10,628,960       (4,343,834     709,442       7,178,322  
  

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:

 

Investments in securities

     (90,152,176     (31,205,508 )(1)      (13,886,299     (31,469,908 )(2) 

Securities lending

                        

Futures contracts

     193,236       72,241       (97,564     (88,860

Forward foreign currency contracts

     3,515       16,596              

Translation of other assets and liabilities denominated in foreign currencies

     (544,866     7,149              
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation)

     (90,500,291     (31,109,522     (13,983,863     (31,558,768
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     (79,871,331     (35,453,356     (13,274,421     (24,380,446
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (71,475,896   $ (32,162,252   $ (12,430,057   $ (23,257,712
  

 

 

 

 

(1) 

Net of deferred non-US capital gains tax of $824,320.

 

(2) 

Includes $(13,315) change in unrealized depreciation on investments in affiliates.

 

See Accompanying Notes to the Financial Statements.

 

   FLEXSHARES SEMIANNUAL REPORT     11  


Table of Contents

 

 

Statements of Operations (cont.)

 

 

     FlexShares®
STOXX®
Global ESG
Select
Index Fund
    FlexShares®
ESG & Climate US
Large Cap Core
Index Fund
    FlexShares®
ESG &  Climate
Developed
Markets ex-US Core
Index Fund
    FlexShares®
ESG & Climate
Emerging
Markets Core
Index Fund
 
                       April 20,
2022* through
April 30, 2022
 

INVESTMENT INCOME

 

Dividend income

   $ 1,792,696     $ 25,453     $ 171,481     $ 1,585  

Income from non-cash dividends

                        

Dividend income received from affiliate

                        

Interest income

     4       4              

Securities lending income (net of fees) (Note 2)

     10,757                    

Foreign withholding tax on dividends

     (103,274           (17,295     (12

Foreign withholding tax on interest

                        
  

 

 

 

Total Investment Income

     1,700,183       25,457       154,186       1,573  
  

 

 

 

EXPENSES

 

Deferred compensation (Note 7)

     1,485       32       65        

Investment advisory fees

     375,518       1,742       4,952       240  

Trustee fees (Note 7)

     5,303       73       192       8  

Other expenses (Note 4)

                        
  

 

 

 

Total Gross Expenses Before Fees Reimbursed

     382,306       1,847       5,209       248  
  

 

 

 

Less:

 

Investment advisory fees reimbursed (Note 4)

     (2,660     (12     (59     (2
  

 

 

 

Total Net Expenses

     379,646       1,835       5,150       246  
  

 

 

 

Net Investment Income (Loss)

     1,320,537       23,622       149,036       1,327  
  

 

 

 

NET REALIZED GAIN (LOSS) FROM:

 

Transactions in investment securities of affiliated issuers

                        

Transactions in investment securities

     127,710       (16,243     (106,156      

In-kind redemptions on investments in affiliated securities

                        

In-kind redemptions on investments in securities

     8,341,868                    

Expiration or closing of futures contracts

     (166,170     (424     (4,908      

Settlement of forward foreign currency contracts

     60,192             (1,058      

Foreign currency transactions

     (68,327     (10     (1,311     15,018  
  

 

 

 

Net Realized Gain (Loss)

     8,295,273       (16,677     (113,433     15,018  
  

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:

 

Investments in securities

     (30,189,604     (905,044     (1,388,179     (112,100 )(1) 

Securities lending

                        

Futures contracts

     (96,809     (3,792     (7,397     (1,547

Forward foreign currency contracts

     25,067             (399      

Translation of other assets and liabilities denominated in foreign currencies

     (25,960     (29     (3,169     (24
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation)

     (30,287,306     (908,865     (1,399,144     (113,671
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     (21,992,033     (925,542     (1,512,577     (98,653
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (20,671,496   $ (901,920   $ (1,363,541   $ (97,326
  

 

 

 

 

*

Commencement of investment operations.

 

(1) 

Net of deferred non-US capital gains tax of $34.

 

See Accompanying Notes to the Financial Statements.

 

12    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Operations (cont.)

 

 

     FlexShares®
Morningstar Global
Upstream Natural
Resources Index
Fund
    FlexShares®
STOXX®
Global Broad
Infrastructure
Index Fund
    FlexShares®
Global
Quality
Real Estate
Index Fund
    FlexShares®
Real Assets
Allocation
Index Fund
 

INVESTMENT INCOME

 

Dividend income

   $ 149,621,192     $ 40,005,252     $ 7,319,886     $  

Income from non-cash dividends

                        

Dividend income received from affiliate

                       519,421  

Interest income

                        

Securities lending income (net of fees) (Note 2)

     525,747       261,538       30,343        

Foreign withholding tax on dividends

     (4,988,679     (2,373,783     (259,507      

Foreign withholding tax on interest

                        
  

 

 

 

Total Investment Income

     145,158,260       37,893,007       7,090,722       519,421  
  

 

 

 

EXPENSES

 

Deferred compensation (Note 7)

     56,271       21,229       3,567       293  

Investment advisory fees

     16,267,150       6,073,103       975,594       114,110  

Trustee fees (Note 7)

     178,430       74,732       12,364       899  

Other expenses (Note 4)

                        
  

 

 

 

Total Gross Expenses Before Fees Reimbursed

     16,501,851       6,169,064       991,525       115,302  
  

 

 

 

Less:

 

Investment advisory fees reimbursed (Note 4)

     (48,017     (34,536     (5,607     (92,527
  

 

 

 

Total Net Expenses

     16,453,834       6,134,528       985,918       22,775  
  

 

 

 

Net Investment Income (Loss)

     128,704,426       31,758,479       6,104,804       496,646  
  

 

 

 

NET REALIZED GAIN (LOSS) FROM:

 

Transactions in investment securities of affiliated issuers

                       (118,244

Transactions in investment securities

     20,174,687 (1)      (10,433,847 )(2)      5,358,727        

In-kind redemptions on investments in affiliated securities

                        

In-kind redemptions on investments in securities

     185,481,517       17,923,478       9,813,262        

Expiration or closing of futures contracts

     1,287,196       280,685       (563,298      

Settlement of forward foreign currency contracts

     (371,371     (814,306     129,114        

Foreign currency transactions

     (288,006     (1,076,972     (335,595      
  

 

 

 

Net Realized Gain (Loss)

     206,284,023       5,879,038       14,402,210       (118,244
  

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:

 

Investments in securities

     845,093,338 (3)      (148,485,385 )(4)      (37,255,755     (880,549 )(5) 

Securities lending

     4,122                    

Futures contracts

     (1,750,302     (394,717     (430,722      

Forward foreign currency contracts

     (396,904     189,928       (65,575      

Translation of other assets and liabilities denominated in foreign currencies

     (975,849     (381,474     (120,149      
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation)

     841,974,405       (149,071,648     (37,872,201     (880,549
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     1,048,258,428       (143,192,610     (23,469,991     (998,793
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ 1,176,962,854     $ (111,434,131   $ (17,365,187   $ (502,147
  

 

 

 

 

(1) 

Net of non-US capital gains tax of $(106,667).

 

(2) 

Net of non-US capital gains tax of $(270,661).

 

(3) 

Net of deferred non-US capital gains tax of $1,204,319.

 

(4) 

Net of deferred non-US capital gains tax of $1,413,613.

 

(5) 

Includes $(880,549) change in unrealized depreciation on investments in affiliates.

 

See Accompanying Notes to the Financial Statements.

 

   FLEXSHARES SEMIANNUAL REPORT     13  


Table of Contents

 

 

Statements of Operations (cont.)

 

 

     FlexShares®
Quality
Dividend
Index Fund
    FlexShares®
Quality
Dividend
Defensive
Index Fund
    FlexShares®
Quality
Dividend
Dynamic
Index Fund
    FlexShares®
International
Quality
Dividend
Index Fund
 

INVESTMENT INCOME

 

Dividend income

   $ 20,390,013     $ 5,065,894     $ 257,130     $ 15,934,672  

Income from non-cash dividends

                       811,787  

Dividend income received from affiliate

                        

Interest income

                        

Securities lending income (net of fees) (Note 2)

     170,127       33,364       1,912       89,113  

Foreign withholding tax on dividends

                       (1,734,429

Foreign withholding tax on interest

                        
  

 

 

 

Total Investment Income

     20,560,140       5,099,258       259,042       15,101,143  
  

 

 

 

EXPENSES

 

Deferred compensation (Note 7)

     13,603       3,665       178       4,883  

Investment advisory fees

     3,078,009       804,707       40,588       1,415,866  

Trustee fees (Note 7)

     47,405       12,640       638       17,544  

Other expenses (Note 4)

                        
  

 

 

 

Total Gross Expenses Before Fees Reimbursed

     3,139,017       821,012       41,404       1,438,293  
  

 

 

 

Less:

 

Investment advisory fees reimbursed (Note 4)

     (20,992     (5,844     (292     (8,624
  

 

 

 

Total Net Expenses

     3,118,025       815,168       41,112       1,429,669  
  

 

 

 

Net Investment Income (Loss)

     17,442,115       4,284,090       217,930       13,671,474  
  

 

 

 

NET REALIZED GAIN (LOSS) FROM:

 

Transactions in investment securities of affiliated issuers

                        

Transactions in investment securities

     (18,520,962     (2,204,777     (49,825     (3,065,921

In-kind redemptions on investments in affiliated securities

                        

In-kind redemptions on investments in securities

     45,753,634       27,975,823       778,103       218,774  

Expiration or closing of futures contracts

     (131,838     (401,500     (8,836     (1,313,325

Settlement of forward foreign currency contracts

                       (292,926

Foreign currency transactions

                       (425,365
  

 

 

 

Net Realized Gain (Loss)

     27,100,834       25,369,546       719,442       (4,878,763
  

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:

 

Investments in securities

     (98,362,111     (44,031,131     (1,966,035     (72,065,005

Securities lending

     1,412                    

Futures contracts

     (638,373     (202,718     (18,436     193,749  

Forward foreign currency contracts

                       (49,356

Translation of other assets and liabilities denominated in foreign currencies

                       (352,947
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation)

     (98,999,072     (44,233,849     (1,984,471     (72,273,559
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     (71,898,238     (18,864,303     (1,265,029     (77,152,322
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (54,456,123   $ (14,580,213   $ (1,047,099   $ (63,480,848
  

 

 

 

 

See Accompanying Notes to the Financial Statements.

 

14    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Operations (cont.)

 

 

     FlexShares®
International
Quality Dividend
Defensive Index
Fund
    FlexShares®
International
Quality Dividend
Dynamic Index
Fund
    FlexShares®
iBoxx 3-Year
Target
Duration TIPS
Index Fund
    FlexShares®
iBoxx 5-Year
Target
Duration TIPS
Index Fund
 

INVESTMENT INCOME

 

Dividend income

   $ 1,729,649     $ 1,965,934     $     $  

Income from non-cash dividends

           238,616              

Dividend income received from affiliate

                        

Interest income

                 50,037,599       23,268,093  

Securities lending income (net of fees) (Note 2)

     12,359       18,223       15,005       25,313  

Foreign withholding tax on dividends

     (166,188     (237,448            

Foreign withholding tax on interest

                        
  

 

 

 

Total Investment Income

     1,575,820       1,985,325       50,052,604       23,293,406  
  

 

 

 

EXPENSES

 

Deferred compensation (Note 7)

     559       629       13,618       6,156  

Investment advisory fees

     161,740       189,344       1,473,464       689,050  

Administration fees (Note 5)

                       30,372  

Trustee fees (Note 7)

     2,022       2,295       40,686       20,970  

Other expenses (Note 4)

                        
  

 

 

 

Total Gross Expenses Before Fees Reimbursed

     164,321       192,268       1,527,768       746,548  
  

 

 

 

Less:

 

Investment advisory fees reimbursed (Note 4)

     (980     (1,081     (14,446     (38,965
  

 

 

 

Total Net Expenses

     163,341       191,187       1,513,322       707,583  
  

 

 

 

Net Investment Income (Loss)

     1,412,479       1,794,138       48,539,282       22,585,823  
  

 

 

 

NET REALIZED GAIN (LOSS) FROM:

 

Transactions in investment securities of affiliated issuers

                        

Transactions in investment securities

     (574,608     (1,168,302 )(1)      2,845,499       (1,012,790

In-kind redemptions on investments in affiliated securities

                        

In-kind redemptions on investments in securities

     170,629             716,750       3,494,379  

Expiration or closing of futures contracts

     (188,337     (189,274            

Settlement of forward foreign currency contracts

     54,271       26,991              

Foreign currency transactions

     (115,711     (56,934            
  

 

 

 

Net Realized Gain (Loss)

     (653,756     (1,387,519     3,562,249       2,481,589  
  

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:

 

Investments in securities

     (6,389,061     (9,033,158 )(2)      (67,325,074     (52,098,191

Securities lending

                        

Futures contracts

     (11,945     (36,517            

Forward foreign currency contracts

     32,947       27,067              

Translation of other assets and liabilities denominated in foreign currencies

     (36,844     (36,142            
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation)

     (6,404,903     (9,078,750     (67,325,074     (52,098,191
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     (7,058,659     (10,466,269     (63,762,825     (49,616,602
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (5,646,180   $ (8,672,131   $ (15,223,543   $ (27,030,779
  

 

 

 

 

(1) 

Net of non-US capital gains tax of $(12,828).

 

(2) 

Net of deferred non-US capital gains tax of $28,216.

 

See Accompanying Notes to the Financial Statements.

 

   FLEXSHARES SEMIANNUAL REPORT     15  


Table of Contents

 

 

Statements of Operations (cont.)

 

 

     FlexShares®
Disciplined
Duration MBS
Index Fund
    FlexShares®
Credit-
Scored US
Corporate Bond
Index Fund
    FlexShares®
Credit-Scored
US Long
Corporate Bond
Index Fund
    FlexShares®
High Yield
Value-
Scored Bond
Index Fund
 

INVESTMENT INCOME

 

Dividend income

   $     $     $     $  

Income from non-cash dividends

                        

Dividend income received from affiliate

                        

Interest income

     472,547       3,041,687       990,633       21,535,086  

Securities lending income (net of fees) (Note 2)

                        

Foreign withholding tax on dividends

                        

Foreign withholding tax on interest

                        
  

 

 

 

Total Investment Income

     472,547       3,041,687       990,633       21,535,086  
  

 

 

 

EXPENSES

 

Deferred compensation (Note 7)

     861       2,335       456       5,574  

Investment advisory fees

     114,676       326,620       60,537       1,308,214  

Trustee fees (Note 7)

     3,311       9,166       1,696       17,406  

Other expenses (Note 4)

                        
  

 

 

 

Total Gross Expenses Before Fees Reimbursed

     118,848       338,121       62,689       1,331,194  
  

 

 

 

Less:

 

Investment advisory fees reimbursed (Note 4)

     (1,421     (4,412     (890     (6,488
  

 

 

 

Total Net Expenses

     117,427       333,709       61,799       1,324,706  
  

 

 

 

Net Investment Income (Loss)

     355,120       2,707,978       928,834       20,210,380  
  

 

 

 

NET REALIZED GAIN (LOSS) FROM:

 

Transactions in investment securities of affiliated issuers

                        

Transactions in investment securities

     (2,107,164     (4,201,144     (1,187,296     (12,607,175

In-kind redemptions on investments in affiliated securities

                        

In-kind redemptions on investments in securities

                       416,638  

Expiration or closing of futures contracts

                        

Settlement of forward foreign currency contracts

                        

Foreign currency transactions

                        
  

 

 

 

Net Realized Gain (Loss)

     (2,107,164     (4,201,144     (1,187,296     (12,190,537
  

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:

 

Investments in securities

     (7,132,054     (23,096,542     (11,754,532     (67,666,055

Securities lending

                        

Futures contracts

                        

Forward foreign currency contracts

                        

Translation of other assets and liabilities denominated in foreign currencies

                        
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation)

     (7,132,054     (23,096,542     (11,754,532     (67,666,055
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     (9,239,218     (27,297,686     (12,941,828     (79,856,592
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (8,884,098   $ (24,589,708   $ (12,012,994   $ (59,646,212
  

 

 

 

 

See Accompanying Notes to the Financial Statements.

 

16    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Operations (cont.)

 

 

     FlexShares®
ESG & Climate
High Yield
Corporate Core
Index Fund
    FlexShares®
ESG & Climate
Investment Grade
Corporate Core
Index Fund
    FlexShares®
Ready Access
Variable
Income Fund
    FlexShares®
Core Select
Bond Fund
 

INVESTMENT INCOME

 

Dividend income

   $     $     $     $ 560,150  

Income from non-cash dividends

                        

Dividend income received from affiliate

                       693,931  

Interest income

     737,431       519,508       1,831,683       612  

Securities lending income (net of fees) (Note 2)

                       24,279  

Foreign withholding tax on dividends

                        

Foreign withholding tax on interest

                        
  

 

 

 

Total Investment Income

     737,431       519,508       1,831,683       1,278,972  
  

 

 

 

EXPENSES

 

Deferred compensation (Note 7)

     273       388       3,657       1,000  

Investment advisory fees

     39,628       28,207       572,073       230,238  

Trustee fees (Note 7)

     1,339       1,442       10,558       3,658  

Other expenses (Note 4)

                        
  

 

 

 

Total Gross Expenses Before Fees Reimbursed

     41,240       30,037       586,288       234,896  
  

 

 

 

Less:

 

Investment advisory fees reimbursed (Note 4)

     (788     (701     (3,055     (96,965
  

 

 

 

Total Net Expenses

     40,452       29,336       583,233       137,931  
  

 

 

 

Net Investment Income (Loss)

     696,979       490,172       1,248,450       1,141,041  
  

 

 

 

NET REALIZED GAIN (LOSS) FROM:

 

Transactions in investment securities of affiliated issuers

                       (2,540,954

Transactions in investment securities

     (446,707     (590,220     (464,835     (353,649

In-kind redemptions on investments in affiliated securities

                       (8,868

In-kind redemptions on investments in securities

     (72,176                 58,605  

Expiration or closing of futures contracts

                       (5,785

Settlement of forward foreign currency contracts

                        

Foreign currency transactions

                        
  

 

 

 

Net Realized Gain (Loss)

     (518,883     (590,220     (464,835     (2,850,651
  

 

 

 

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:

 

Investments in securities

     (2,325,179     (6,165,917     (6,347,887     (12,608,855 )(1) 

Securities lending

                        

Futures contracts

                       28,144  

Forward foreign currency contracts

                        

Translation of other assets and liabilities denominated in foreign currencies

                        
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation)

     (2,325,179     (6,165,917     (6,347,887     (12,580,711
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     (2,844,062     (6,756,137     (6,812,722     (15,431,362
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (2,147,083   $ (6,265,965   $ (5,564,272   $ (14,290,321
  

 

 

 

 

(1) 

Includes $(4,010,788) change in unrealized depreciation on investments in affiliates.

 

See Accompanying Notes to the Financial Statements.

 

   FLEXSHARES SEMIANNUAL REPORT     17  


Table of Contents

 

FlexShares® Trust

Statements of Changes in Net Assets

 

 

     FlexShares® US Quality Low
Volatility Index Fund
    FlexShares® Developed Markets
ex-US Quality  Low Volatility Index Fund
 
     Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
   

Six Months

Ended
April 30, 2022
(Unaudited)

    Year Ended
October 31,
2021
 

OPERATIONS

 

Net investment income (loss)

   $ 1,010,657     $ 1,643,691     $ 915,475     $ 2,226,694  

Net realized gain (loss)

     4,123,103       9,877,154       (180,001     4,060,236  

Net change in unrealized appreciation (depreciation)

     (11,763,230     29,486,420       (6,094,393     8,924,507  
  

 

 

 

Net Increase (Decrease) in Net Assets

        

Resulting from Operations

     (6,629,470     41,007,265       (5,358,919     15,211,437  
  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

        

Distributable earnings

     (931,512     (1,694,565     (880,977     (2,249,889
  

 

 

 

Total distributions

     (931,512     (1,694,565     (880,977     (2,249,889
  

 

 

 

CAPITAL TRANSACTIONS(1)

        

Proceeds from shares issued

     29,086,514       56,108,720       8,149,550       13,390,874  

Cost of shares redeemed

     (21,078,049     (44,870,466     (8,015,506     (16,728,469
  

 

 

 

Net Increase (Decrease) from Capital Transactions

     8,008,465       11,238,254       134,044       (3,337,595
  

 

 

 

Total Increase (Decrease) in Net Assets

     447,483       50,550,954       (6,105,852     9,623,953  
  

 

 

 

NET ASSETS

        

Beginning of Period

   $ 161,074,492     $ 110,523,538     $ 75,370,957     $ 65,747,004  
  

 

 

 

End of Period

   $ 161,521,975     $ 161,074,492     $ 69,265,105     $ 75,370,957  
  

 

 

 

SHARE TRANSACTIONS

        

Beginning of period

     2,950,001       2,700,001       2,700,001       2,800,001  

Shares issued

                 100,000        

Shares issued in-kind

     550,000       1,150,000       200,000       500,000  

Shares redeemed

                        

Shares redeemed in-kind

     (400,000     (900,000     (300,000     (600,000
  

 

 

 

Shares Outstanding, End of Period

     3,100,001       2,950,001       2,700,001       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.

 

18    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Changes in Net Assets (cont.)

 

 

     FlexShares® Emerging Markets
Quality Low Volatility Index Fund
    FlexShares® Morningstar US
Market Factor Tilt Index Fund
 
     Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
    Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
 

OPERATIONS

 

Net investment income (loss)

   $ 134,963     $ 384,138     $ 11,407,711     $ 20,467,734  

Net realized gain (loss)

     (135,487     204,217       52,910,077       125,723,634  

Net change in unrealized appreciation (depreciation)

     (729,429     669,161       (237,848,692     436,303,767  
  

 

 

 

Net Increase (Decrease) in Net Assets

        

Resulting from Operations

     (729,953     1,257,516       (173,530,904     582,495,135  
  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

        

Distributable earnings

     (148,467     (269,007     (11,284,311     (19,993,786
  

 

 

 

Total distributions

     (148,467     (269,007     (11,284,311     (19,993,786
  

 

 

 

CAPITAL TRANSACTIONS(1)

        

Proceeds from shares issued

           5,276,872       44,415,344       95,734,574  

Cost of shares redeemed

                 (89,630,006     (106,003,334
  

 

 

 

Net Increase (Decrease) from Capital Transactions

           5,276,872       (45,214,662     (10,268,760
  

 

 

 

Total Increase (Decrease) in Net Assets

     (878,420     6,265,381       (230,029,877     552,232,589  
  

 

 

 

NET ASSETS

        

Beginning of Period

   $ 15,843,691     $ 9,578,310     $ 1,727,019,018     $ 1,174,786,429  
  

 

 

 

End of Period

   $ 14,965,271     $ 15,843,691     $ 1,496,989,141     $ 1,727,019,018  
  

 

 

 

SHARE TRANSACTIONS

        

Beginning of period

     600,001       400,001       9,650,001       9,700,001  

Shares issued

                        

Shares issued in-kind

           200,000       250,000       600,000  

Shares redeemed

                        

Shares redeemed in-kind

                 (500,000     (650,000
  

 

 

 

Shares Outstanding, End of Period

     600,001       600,001       9,400,001       9,650,001  
  

 

 

 

 

(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  


Table of Contents

 

 

Statements of Changes in Net Assets (cont.)

 

 

     FlexShares® Morningstar
Developed Markets ex-US
Factor Tilt Index Fund
    FlexShares® Morningstar
Emerging Markets Factor Tilt
Index Fund
 
     Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
    Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
 

OPERATIONS

 

Net investment income (loss)

   $ 8,395,435     $ 15,324,867     $ 3,291,104     $ 7,624,187  

Net realized gain (loss)

     10,628,960       21,856,890       (4,343,834     25,611,349  

Net change in unrealized appreciation (depreciation)

     (90,500,291     152,302,928       (31,109,522     31,176,773  
  

 

 

 

Net Increase (Decrease) in Net Assets

        

Resulting from Operations

     (71,475,896     189,484,685       (32,162,252     64,412,309  
  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

        

Distributable earnings

     (12,030,789     (13,410,048     (5,433,825     (6,011,707
  

 

 

 

Total distributions

     (12,030,789     (13,410,048     (5,433,825     (6,011,707
  

 

 

 

CAPITAL TRANSACTIONS(1)

        

Proceeds from shares issued

     14,615,863       44,016,396             50,124,591  

Cost of shares redeemed

     (26,233,611     (70,468,136     (28,171,247      
  

 

 

 

Net Increase (Decrease) from Capital Transactions

     (11,617,748     (26,451,740     (28,171,247     50,124,591  
  

 

 

 

Total Increase (Decrease) in Net Assets

     (95,124,433     149,622,897       (65,767,324     108,525,193  
  

 

 

 

NET ASSETS

        

Beginning of Period

   $ 648,638,493     $ 499,015,596     $ 334,371,995     $ 225,846,802  
  

 

 

 

End of Period

   $ 553,514,060     $ 648,638,493     $ 268,604,671     $ 334,371,995  
  

 

 

 

SHARE TRANSACTIONS

        

Beginning of period

     8,800,001       9,200,001       5,500,001       4,700,001  

Shares issued

                        

Shares issued in-kind

     200,000       600,000             800,000  

Shares redeemed

                        

Shares redeemed in-kind

     (400,000     (1,000,000     (500,000      
  

 

 

 

Shares Outstanding, End of Period

     8,600,001       8,800,001       5,000,001       5,500,001  
  

 

 

 

 

(1) 

Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements.

 

See Accompanying Notes to the Financial Statements.

 

20    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Changes in Net Assets (cont.)

 

 

     FlexShares® US Quality
Large Cap Index Fund
    FlexShares® STOXX® US
ESG Select Index Fund
 
     Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
    Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
 

OPERATIONS

 

Net investment income (loss)

   $ 844,364     $ 1,172,409     $ 1,122,734     $ 2,051,388  

Net realized gain (loss)

     709,442       5,820,892       7,178,322       25,495,358  

Net change in unrealized appreciation (depreciation)

     (13,983,863     26,126,364       (31,558,768     24,935,787  
  

 

 

 

Net Increase (Decrease) in Net Assets

        

Resulting from Operations

     (12,430,057     33,119,665       (23,257,712     52,482,533  
  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

        

Distributable earnings

     (800,199     (1,136,947     (1,155,791     (1,955,493
  

 

 

 

Total distributions

     (800,199     (1,136,947     (1,155,791     (1,955,493
  

 

 

 

CAPITAL TRANSACTIONS(1)

        

Proceeds from shares issued

     13,543,283       54,387,819       30,792,000       115,766,022  

Cost of shares redeemed

     (3,766,641     (13,737,728     (17,029,708     (63,701,888
  

 

 

 

Net Increase (Decrease) from Capital Transactions

     9,776,642       40,650,091       13,762,292       52,064,134  
  

 

 

 

Total Increase (Decrease) in Net Assets

     (3,453,614     72,632,809       (10,651,211     102,591,174  
  

 

 

 

NET ASSETS

        

Beginning of Period

   $ 144,475,249     $ 71,842,440     $ 191,642,745     $ 89,051,571  
  

 

 

 

End of Period

   $ 141,021,635     $ 144,475,249     $ 180,991,534     $ 191,642,745  
  

 

 

 

SHARE TRANSACTIONS

        

Beginning of period

     2,875,001       2,025,001       1,700,001       1,125,001  

Shares issued

                        

Shares issued in-kind

     275,000       1,150,000       275,000       1,200,000  

Shares redeemed

                        

Shares redeemed in-kind

     (75,000     (300,000     (150,000     (625,000
  

 

 

 

Shares Outstanding, End of Period

     3,075,001       2,875,001       1,825,001       1,700,001  
  

 

 

 

 

(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.

 

   FLEXSHARES SEMIANNUAL REPORT     21  


Table of Contents

 

 

Statements of Changes in Net Assets (cont.)

 

 

     FlexShares® STOXX®
Global ESG Select Index
Fund
    FlexShares®
ESG & Climate US
Large Cap Core
Index Fund
 
     Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
    Six Months
Ended
April 30, 2022
(Unaudited)
    September 20,
2021*
through
October 31,
2021
 

OPERATIONS

 

Net investment income (loss)

   $ 1,320,537     $ 2,456,041     $ 23,622     $ 2,838  

Net realized gain (loss)

     8,295,273       13,795,248       (16,677     (534

Net change in unrealized appreciation (depreciation)

     (30,287,306     34,498,730       (908,865     167,182  
  

 

 

 

Net Increase (Decrease) in Net Assets

        

Resulting from Operations

     (20,671,496     50,750,019       (901,920     169,486  
  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

        

Distributable earnings

     (1,268,473     (2,324,712     (17,337      
  

 

 

 

Total distributions

     (1,268,473     (2,324,712     (17,337      
  

 

 

 

CAPITAL TRANSACTIONS(1)

        

Proceeds from shares issued

     14,352,430       53,795,593       11,288,265        

Cost of shares redeemed

     (14,389,810     (27,826,718            
  

 

 

 

Net Increase (Decrease) from Capital Transactions

     (37,380     25,968,875       11,288,265        
  

 

 

 

Total Increase (Decrease) in Net Assets

     (21,977,349     74,394,182       10,369,008       169,486  
  

 

 

 

NET ASSETS

        

Beginning of Period

   $ 185,717,474     $ 111,323,292     $ 2,669,486     $ 2,500,000 (2),(3) 
  

 

 

 

End of Period

   $ 163,740,125     $ 185,717,474     $ 13,038,494     $ 2,669,486  
  

 

 

 

SHARE TRANSACTIONS

        

Beginning of period

     1,250,001       1,050,001       50,000       50,000 (2) 

Shares issued

     50,000                    

Shares issued in-kind

     50,000       400,000       225,000        

Shares redeemed

                        

Shares redeemed in-kind

     (100,000     (200,000            
  

 

 

 

Shares Outstanding, End of Period

     1,250,001       1,250,001       275,000       50,000  
  

 

 

 

 

*

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.

 

(3) 

Includes amounts paid in capital from the Authorized Participant in addition to the order’s original cash component. This amount is made to offset taxes, commissions, and price differences from the NAV that would otherwise impact the fund on these order trades.

 

See Accompanying Notes to the Financial Statements.

 

22    FLEXSHARES SEMIANNUAL REPORT  


Table of Contents

 

 

Statements of Changes in Net Assets (cont.)

 

 

     FlexShares®
ESG & Climate
Developed Markets
ex-US Core
Index Fund
    FlexShares®
ESG & Climate
Emerging
Markets Core
Index Fund
 
     Six Months
Ended
April 30, 2022
(Unaudited)
    September 20,
2021*
through
October 31,
2021
    April 20,
2022*
through
April 30,
2022
 

OPERATIONS

 

 

Net investment income (loss)

   $ 149,036     $ 15,775     $ 1,327  

Net realized gain (loss)

     (113,433     (777     15,018  

Net change in unrealized appreciation (depreciation)

     (1,399,144     103,891       (113,671
  

 

 

 

Net Increase (Decrease) in Net Assets

      

Resulting from Operations

     (1,363,541     118,889       (97,326
  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

      

Distributable earnings

     (57,093            
  

 

 

 

Total distributions

     (57,093            
  

 

 

 

CAPITAL TRANSACTIONS(1)

      

Proceeds from shares issued

     14,322,715              

Cost of shares redeemed

                  
  

 

 

 

Net Increase (Decrease) from Capital Transactions

     14,322,715              
  

 

 

 

Total Increase (Decrease) in Net Assets

     12,902,081       118,889       (97,326
  

 

 

 

NET ASSETS

      

Beginning of Period

   $ 5,119,060     $ 5,000,171 (2),(3)    $ 5,000,000 (2),(3) 
  

 

 

 

End of Period

   $ 18,021,141     $ 5,119,060     $ 4,902,674  
  

 

 

 

SHARE TRANSACTIONS

      

Beginning of period

     100,000       100,000 (2)      100,000 (2) 

Shares issued

                  

Shares issued in-kind

     300,000              

Shares redeemed

                  

Shares redeemed in-kind

                  
  

 

 

 

Shares Outstanding, End of Period

     400,000       100,000       100,000  
  

 

 

 

 

*

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.

 

(3) 

Includes amounts paid in capital from the Authorized Participant in addition to the order’s original cash component. This amount is made to offset taxes, commissions, and price differences from the NAV that would otherwise impact the fund on these order trades.

 

See Accompanying Notes to the Financial Statements.

 

   FLEXSHARES SEMIANNUAL REPORT     23  


Table of Contents

 

 

Statements of Changes in Net Assets (cont.)

 

 

     FlexShares® Morningstar
Global Upstream Natural
Resources Index Fund
    FlexShares® STOXX® Global
Broad Infrastructure Index Fund
 
     Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
    Six Months
Ended
April 30, 2022
(Unaudited)
    Year Ended
October 31,
2021
 

OPERATIONS

 

Net investment income (loss)

   $ 128,704,426     $ 188,997,153     $ 31,758,479     $ 61,807,665  

Net realized gain (loss)

     206,284,023       (71,904,345     5,879,038       117,716,133  

Net change in unrealized appreciation (depreciation)

     841,974,405       1,409,046,021       (149,071,648     271,965,150  
  

 

 

 

Net Increase (Decrease) in Net Assets

        

Resulting from Operations

     1,176,962,854       1,526,138,829       (111,434,131     451,488,948  
  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

        

Distributable earnings

     (128,767,470     (167,354,837     (34,319,736     (58,905,802
  

 

 

 

Total distributions

     (128,767,470     (167,354,837     (34,319,736     (58,905,802
  

 

 

 

CAPITAL TRANSACTIONS(1)

        

Proceeds from shares issued

     1,436,199,035       1,894,646,901       93,605,875       754,964,371  

Cost of shares redeemed

     (396,381,443     (125,446,435     (53,816,491     (360,237,628
  

 

 

 

Net Increase (Decrease) from Capital Transactions

     1,039,817,592       1,769,200,466       39,789,384       394,726,743  
  

&nb