FlexShares® Trust
Annual Report
October 31, 2022
Dear Shareholder,
In retrospect, there was no contest. The optimism with which many investors approached 2022, though by no means unfounded, could not prevail against the markets’ most formidable adversary: Uncertainty.
A startling spike in inflation, an aggressive response by the Federal Reserve (“the Fed”), Russia’s invasion of Ukraine, and the relative de-globalization of relations with China easily overshadowed the positive effects of recovering supply chains, solid employment numbers, rising wages and an active consumer.
While macroeconomic and geopolitical challenges are hardly unprecedented, encountering them simultaneously and at this magnitude is a distant memory for many investors and, for some, an entirely new phenomenon. It’s no wonder, then, that we saw such a flight to perceived “safety” or to the sidelines, even though we believe that past experience argues for staying the course and maintaining a long-term perspective.
We enter 2023 with optimism, tempered with a healthy degree of caution. We believe stock valuations reflect potential risks, with many asset classes presenting compelling opportunities for investors. The slowing global economy has aided recent inflation trends, and we believe that if inflationary pressures continue to subside, it could allow the Fed to pause its rate hikes. Nevertheless, our opinion is that the possibility of a global recession is at its highest levels since the reopening of the global economy and even if we manage to avoid it, we believe below-trend growth appears likely.
Against this backdrop, we bring you our update for the FlexShares exchange-traded funds, sponsored and managed by Northern Trust Asset Management, for the year ended October 31, 2022. In addition to financial results for each fund, our portfolio managers explain the specific factors that influenced fund performance. As always, we encourage you to make the Insights Section on our website a destination for up to date analysis and perspective.
On behalf of all of us at Northern Trust and FlexShares, I want to thank you for your ongoing confidence and support.
We are proud to share our insights and acumen to help you navigate potential risks and identify opportunities within the marketplace.
Best wishes to you and yours for a joyous, productive, and rewarding new year.
Sincerely,
Darek Wojnar, CFA
Head, Funds & Managed Account Solutions, Northern Trust Asset Management
The views in this letter were as of October 31, 2022 and may not necessarily reflect the same views on the date this letter is first published or any time thereafter. These views are intended to help shareholders in understanding the Funds’ investment methodology and do not constitute investment advice.
This report is submitted for the general information of the shareholders of the Funds. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Funds’ risks, objectives, fees and expenses, experience of its management, and other information.
An investment in the Funds’ is subject to numerous risks, including possible loss of principal. Fund returns may not match the return of the respective indexes.
Some of the risks include, but are not limited to, the following: asset class; commodity; concentration; counterparty; currency; derivatives; dividend; emerging markets; equity securities; fluctuation of yield; foreign securities; geographic; income; industry concentration; inflation protected securities; infrastructure-related companies; interest rate/ maturity risk; issuer; large cap; management; market; market trading; mid cap stock; MLP; momentum; natural resources; new funds; non-diversification; passive investment; privatization; small cap stock; tracking error; value investing; and volatility risk. A full description of risks is in each Fund’s prospectus.
Foreside Fund Services, LLC, distributor.
2 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Quality Low Volatility Index Fund Ticker: QLV
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | Fund Inception 7/15/2019 |
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FlexShares US Quality Low Volatility Index Fund (Based on Net Asset Value) |
-7.12 | % | 8.78 | % | 8.39 | % | ||||||
FlexShares US Quality Low Volatility Index Fund (Based on Market Price) |
-7.15 | % | 8.74 | % | 8.39 | % | ||||||
Russell 1000® Index |
-16.38 | % | 9.98 | % | 9.38 | % | ||||||
Northern Trust Quality Low Volatility Index |
-6.86 | % | 9.02 | % | 8.69 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.23% and the net expense ratio is 0.22%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Low Volatility IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in the aggregate, possess lower absolute volatility characteristics relative to the Northern Trust 1250 Index (the “Parent Index”), a float-adjusted market capitalization weighted index of U.S. domiciled large- and mid-capitalization companies. In addition, the Underlying Index is designed to select companies from the Parent Index that exhibit financial strength, stability and enhanced risk-return characteristics, which Northern Trust Investments, Inc. (“NTI”) believes can provide equity-market participation while seeking to protect against downside risks during certain market environments. As of October 31, 2022, there were 121 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021, U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concern over rising inflation was intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to
FLEXSHARES ANNUAL REPORT | 3 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Quality Low Volatility Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate1 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. Q1 of 2022 also saw a wide variance in sector performance as energy companies had outsized positive performance while the technology and communication services sectors were the worst performers. The selloff of U.S. equities accelerated in Q2 of 2022 as the Fed moved forward with aggressive key interest rate hikes to seek to combat rising inflation. The Fed increased the key interest rate by 0.50% in May and by 0.75% in June, while signaling additional aggressive key interest rate hikes at future meetings were likely. Economic data was better than expected, but there were some signals that a slowdown may be coming. U.S. equity markets continued lower in Q3 of 2022 as the Fed continued raising the key interest rate with two 0.75% increases in July and September. Gross Domestic Product data showed year-over-year growth to be negative for Q2 of 2022, marking the second consecutive quarter of negative growth. Domestic equities rebounded in October of 2022 as corporate earnings reported over the month were generally better than expected. Sector performance dispersion was again large as the energy sector continued to outpace the rest of the U.S. equity market.
Because U.S. domestic investments trended down and were highly volatile during the 12 months ended October 31, 2022, we believe the low volatility2 approach of the Underlying Index was a positive driver of Fund performance for the twelve-month period. In addition, we believe that the changes experienced in the macroeconomic environment as well as the increase in key interest rates were conducive to high quality factor3 companies, resulting in the high-quality factor exposure augmenting Fund performance over the 12 months. Overall, the positive performance derived from the low volatility and quality factor exposures of the Underlying Index were the primary sources of the Underlying
Index’s outperformance against the Russell 1000® Index4 by 9.52%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -26 basis points (“bps”)5, which is reflective of the management fee (-22 bps), stock selection/futures (-6 bps), and the compounding effect of tracking error over time (+2 bps).
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
2 |
Volatility is the measurement of the price movements of a group of stocks over a defined time frame. |
3 |
The quality factor is a factor that seeks to identify companies that exhibit financial strength and stability relative to the Parent Index. |
4 |
The Russell 1000® Index refers to a stock market index that represents the 1000 top companies in the United States. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
4 | FLEXSHARES ANNUAL REPORT |
FlexShares® Developed | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Markets Ex-US Quality Low Volatility Index Fund Ticker: QLVD
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | Fund Inception 7/15/2019 |
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FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (Based on Net Asset Value) |
-18.36 | % | -2.24 | % | -1.23 | % | ||||||
FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (Based on Market Price) |
-18.33 | % | -2.21 | % | -1.12 | % | ||||||
MSCI World ex-US Index |
-22.04 | % | -0.49 | % | 0.17 | % | ||||||
Northern Trust Developed Markets ex-US Quality Low Volatility Index |
-18.14 | % | -2.04 | % | -1.00 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.33% and the net expense ratio is 0.32%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Developed Markets ex-US Quality Low Volatility IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in the aggregate, possess lower overall absolute volatility characteristics relative to a broad universe of securities domiciled in developed market countries, excluding the U.S. (the “Parent Index”). The Parent Index is a subset of the Northern Trust Global Index, where eligible securities are limited to those securities domiciled in non-U.S. developed market countries and designated as large- and mid-capitalization companies by Northern Trust Investments, Inc. (“NTI”), acting in its capacity as the index provider. In addition, the Underlying Index is designed to select companies from the Parent Index that exhibit financial strength, stability and enhanced risk-return characteristics, which NTI believes can provide equity-market participation while seeking to protect against downside risks during certain market environments. As of October 31, 2022, there were 172 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on Developed international equities generally traded lower. Over the course of the 12-month period the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising dollar. Through Q4 of 2021 Developed international equities were relatively flat as strength in European and U.K. investments due to resilient economic data from that region was offset by weakness in Asia Pacific equities. The emergence of the Omicron variant of Covid-19 weighed on investments in Hong Kong and Singapore as investors feared
FLEXSHARES ANNUAL REPORT | 5 |
FlexShares® Developed | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Markets Ex-US Quality Low Volatility Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
additional lockdowns in China would impact their overall markets. Developed international investments declined in Q1 of 2022 as we believe Russia’s invasion of Ukraine contributed to rising inflation and fears that energy supply shortages could impact economic growth. Investments in Hong Kong and Taiwan were also negatively impacted by a sharp rise in the number of Covid cases reported in China, leading to an increased number of cities being placed under lockdown. The selloff in developed international investments accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. As global central banks struggled to keep pace with the aggressive key interest rate1 hikes by the U.S. Federal Reserve, the increasing interest rate differential caused the U.S. dollar to strengthen in comparison to other developed market currencies. Developed international investments were generally higher in October of 2022 as corporate earnings showed resilience and investors interpreted statements by the European Central Bank regarding the likelihood of a recession as a potential reprieve to further key interest rate hikes.
Because Developed international investments trended down and were highly volatile during the 12 months ended October 31, 2022, we believe the low volatility2 approach of the Underlying Index was a positive driver of Fund performance for the twelve-month period. Additionally, we believe that the changes experienced in the macroeconomic environment and the higher overall interest rate environment were conducive to high quality companies within the Developed international universe. Consequently, the quality factor3 focus of the Fund’s Underlying Index was a positive driver of Fund performance for the 12-month period. Overall, the positive performance derived from both the low volatility and quality factor exposures were the primary sources of the Underlying Index’s outperformance against the MSCI World ex-US Index4 by 3.90%. The
tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -22 basis points (“bps”)5, which is reflective of the Fund’s management fee (-32 bps), stock selection/futures (+2 bps), securities lending (+1 bps), dividend tax differential (+2 bps), and the compounding effect of tracking error over time (+5 bps).
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
2 |
Volatility is the measurement of the price movements of a group of stocks over a defined time frame. |
3 |
The quality factor is a factor that seeks to identify companies that exhibit financial strength and stability relative to the Parent Index. |
4 |
The Morgan Stanley Capital International All Country World Index Ex-U.S. is a market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI) and is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
6 | FLEXSHARES ANNUAL REPORT |
FlexShares® Emerging | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Markets Quality Low Volatility Index Fund Ticker: QLVE
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | Fund Inception 7/15/2019 |
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FlexShares Emerging Markets Quality Low Volatility Index Fund (Based on Net Asset Value) |
-19.77 | % | -3.93 | % | -3.53 | % | ||||||
FlexShares Emerging Markets Quality Low Volatility Index Fund (Based on Market Price) |
-20.74 | % | -4.19 | % | -3.73 | % | ||||||
MSCI Emerging Markets Index |
-31.03 | % | -4.42 | % | -4.25 | % | ||||||
Northern Trust Emerging Markets Quality Low Volatility Index |
-19.14 | % | -3.16 | % | -2.76 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.41% and the net expense ratio is 0.40%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Emerging Markets Quality Low Volatility IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in the aggregate, possess lower overall absolute volatility characteristics relative to a broad universe of securities domiciled in emerging market countries (the “Parent Index”). The Parent Index is a subset of the Northern Trust Global Index, limited to those securities domiciled in emerging markets and designated as large- and mid- capitalization companies by Northern Trust Investments, Inc. (“NTI”), acting in its capacity as the index provider. In addition, the Underlying Index is designed to select companies from the Parent Index that exhibit financial strength, stability and enhanced risk-return characteristics, which NTI believes can provide equity-market participation while seeking to protect against downside risks during certain market environments. As of October 31, 2022, there were 148 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on emerging market equities generally traded lower. Over the course of the 12-month period, the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising USD. Through Q4 of 2021, emerging equities traded lower as the rapid spread of the Omicron variant of Covid-19 stoked fears that a new round of lockdowns in China would hinder growth in the region. Russian equities were the worst performing market as geopolitical tensions with the West worsened due to the buildup of Russian troops on its
FLEXSHARES ANNUAL REPORT | 7 |
FlexShares® Emerging | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Markets Quality Low Volatility Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
border with Ukraine. Emerging markets continued to decline in Q1 of 2022 as Russia launched a full scale invasion into Ukraine and the U.S. and its European allies responded with sanctions. As part of these sanctions, Russian equity securities were removed from major emerging market indices in March. Increased Covid cases in China and the lockdown of several cities also weighed on markets. Due to rising commodity prices, equity markets in countries that export natural resources in Latin America and the Middle East were up for Q1 of 2022, but not enough to overcome the weakness in emerging markets in Europe and Asia Pacific. The selloff in emerging equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and USD strength increased the risk of a global recession. Emerging markets continued lower in October of 2022, driven primarily by declining China equity markets as Premier Xi was elected to a third five-year term, leading to speculation that nationalistic policies would be put in place that would limit China’s growth.
Because emerging investments trended down and were highly volatile during the 12 months ended October 31, 2022, we believe the low volatility1 approach of the Underlying Index was a positive driver of Fund performance for the twelve-month period. In addition, we believe that the changes experienced in the macroeconomic environment as well as the increase in key interest rates were conducive to high quality factor2 companies, resulting in the high-quality factor exposure augmenting Fund performance over the 12 months. Overall, the positive performance derived from both the low volatility and quality factor exposures of the Underlying Index were the primary sources of the Underlying Index’s outperformance against the MSCI Emerging Markets Index3 by 11.89%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -63 basis points (“bps”)4, which
is reflective of the Fund’s management fee (-40 bps), stock selection/futures (-21 bps), and the compounding effect of tracking error over time (-2 bps).
1 |
Volatility is the measurement of the price movements of a group of stocks over a defined time frame. |
2 |
The quality factor is a factor that seeks to identify companies that exhibit financial strength and stability relative to the Parent Index. |
3 |
The Morgan Stanley Capital International Emerging Markets Index is a selection of stocks that are designed to track the financial performance of key companies in fast-growing nations. |
4 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
8 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Market Factor Tilt Index Fund Ticker: TILT
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 5 Year | 10 Year | Fund Inception 9/16/2011 |
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FlexShares Morningstar US Market Factor Tilt Index Fund (Based on Net Asset Value) |
-14.33 | % | 8.79 | % | 11.72 | % | 12.10 | % | ||||||||
FlexShares Morningstar US Market Factor Tilt Index Fund (Based on Market Price) |
-14.29 | % | 8.79 | % | 11.41 | % | 12.11 | % | ||||||||
Morningstar® U.S. Market Factor Tilt IndexSM |
-14.26 | % | 8.91 | % | 11.88 | % | 12.27 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.26% and the net expense ratio is 0.25%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar® US Market Factor Tilt Index (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in the aggregate, possess greater exposure to size and value factors relative to the Morningstar US Market Index (the “Parent Index”), a float-adjusted market-capitalization weighted index of U.S.-incorporated large-, mid-, small- and micro- capitalization companies. The Underlying Index seeks to achieve increased exposures to size and value factors, or a “factor tilt,” by adjusting the Parent Index’s constituent weights to achieve a slightly greater weight on companies with smaller market capitalizations or lower valuations, as determined by Morningstar, Inc. pursuant to its index methodology. The Underlying Index is designed to include companies with enhanced risk-return characteristics relative to the broader U.S. equity market by featuring size and value risk premiums, which Northern Trust Investments, Inc. (“NTI”) believes have been historically demonstrated over a full market cycle. As of October 31, 2022, there were 2,558 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on U.S. domestic investments generally traded lower. During Q4 of 2021, U.S. domestic investments rose as economic data and strong corporate earnings suggested continued growth which allayed concerns over a potential spike in Covid cases. U.S. domestic investments declined in Q1 of 2022, however, as we believe investor concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the potential impact of sanctions from the U.S. and European countries on overall global commodity prices. To combat inflation, the Federal Reserve (Fed) raised the
FLEXSHARES ANNUAL REPORT | 9 |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Market Factor Tilt Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
benchmark key interest rate1 0.25% in March 2022 and signaled more aggressive key interest hikes may be necessary. Q1 of 2022 also saw a wide variance in sector performance as energy companies had positive performance in comparison to the technology and communication services sectors which were the worst performers. The downturn of U.S. domestic investments accelerated in Q2 of 2022 as the Fed moved forward with two more rounds of hikes of the key interest rate—0.50% in May and 0.75% in June—in an effort to combat rising inflation as seen in the Consumer Price Index.2 Overall U.S. domestic investment fell as the Fed continued raising the key interest rate again with two 0.75% increases in July and September, respectively. In Q2 of 2022, Gross Domestic Product (GDP)3 showed negative data year-over-year, marking the second consecutive quarter of negative growth. U.S. domestic investments overall rebounded in October of 2022, however, as corporate earnings reported over the month were generally better than expected. Sector performance dispersion was again large as the energy sector continued to outpace the rest of U.S. domestic investments.
Because of the changes in growth expectations and the rising rate environment, U.S. domestic investments trended downward during the 12 months ended October 31, 2022. We believe the Morningstar value factor4 was a positive driver of Fund performance during the fiscal year ended October 31, 2022, as value stocks outperformed growth stocks5. The Morningstar size factor6 was also impacted by the changes in growth and interest rates and was a negative driver of Fund performance over the twelve months as small cap stocks underperformed large cap stocks. Overall, the positive performance derived from the Morningstar value factor was enough to offset the negative performance of the Morningstar size factor leading to the Underlying Index’s outperformance against the Russell 3000 Index®7 by 2.26%. Tracking difference
between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -7 basis points (“bps”)8, which is reflective of the management fee (-25 bps), stock selection/futures (+14 bps) and securities lending (+4 bps).
The Morningstar U.S. Market Factor Tilt Index is the intellectual property (including registered trademarks) of Morningstar and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by Morningstar and its Licensors and neither of the Licensors shall have any liability with respect thereto.
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
2 |
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. |
3 |
Gross Domestic Product (GDP) is seen as a comprehensive measure of U.S. economic activity which measures the value of the final goods and services produced in the United States. |
4 |
The Morningstar value factor seeks to identify stocks that are inexpensive relative to some measure of fundamental value (e.g., low price/book, low price/earnings, high dividend yields, etc.), which could result in outperformance relative to those that are pricier. |
5 |
Growth stocks are defined as those issued by companies that are anticipated to grow at a rate significantly above the average for the market. |
6 |
The Morningstar size factor measures a stock’s total capitalization which can be found by multiplying the current share price by all the outstanding shares of the stock, and seeks to overweight smaller capitalization stocks. |
7 |
The Russell 3000 Index is a market-capitalization-weighted equity index that seeks to track 3000 of the largest U.S.-traded stocks. |
8 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
10 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Developed Markets ex-US Factor Tilt Index Fund Ticker: TLTD
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 5 Year | 10 Year | Fund Inception 9/25/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (Based on Net Asset Value) |
-22.83 | % | -1.09 | % | 3.84 | % | 3.65 | % | ||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (Based on Market Price) |
-23.18 | % | -1.27 | % | 1.46 | % | 3.63 | % | ||||||||
Morningstar® Developed Markets ex-US Factor Tilt IndexSM |
-22.89 | % | -1.10 | % | 3.92 | % | 3.73 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.40% and the net expense ratio is 0.39%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar® Developed Markets ex-US Factor Tilt IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in the aggregate, possess greater exposure to size and value factors relative to the Morningstar Developed Markets ex-US Index (the “Parent Index”), a float adjusted market-capitalization weighted index of companies incorporated in developed-market countries, excluding the U.S. The Underlying Index seeks to achieve increased exposures to size and value factors, or a “factor tilt”, by adjusting the Parent Index’s constituent weights to achieve a slightly greater weight on companies with smaller market capitalizations or lower valuations, as determined by Morningstar, Inc. pursuant to its index methodology. The Underlying Index is designed to include companies with enhanced risk-return characteristics relative to the broader developed international equity market by featuring size and value risk premiums, which Northern Trust Investments, Inc. (“NTI”) believes have been historically demonstrated over a full market cycle. As of October 31, 2022, there were 3,187 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on developed international equities generally traded lower. Over the course of the 12-month period, the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising dollar. Through Q4 of 2021, developed international markets were relatively flat as strength in the European and U.K. equity markets was offset by weakness is the Asia Pacific equity markets. The emergence of the Omicron variant of Covid-19 weighed on equities in Hong Kong and Singapore as investors feared additional lockdowns in China would impact these equity markets. Developed international equities declined in Q1 of 2022 as Russia’s invasion of Ukraine contributed to rising inflation and
FLEXSHARES ANNUAL REPORT | 11 |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Developed Markets ex-US Factor Tilt Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
fears that energy supply shortages would impact economic growth. Equity markets in Hong Kong and Taiwan were also negatively impacted by a sharp rise in the number of Covid cases in China, leading to an increased number of cities being placed under lockdown. The selloff in developed international equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. As global central banks struggled to keep pace with the aggressive key interest rate1 hikes by the U.S. Federal Reserve, the increasing interest rate differential caused the USD to strengthen versus many developed market currencies. Developed international equities generally traded higher in October of 2022 as corporate earnings showed resilience and investors interpreted statements by the European Central Bank regarding the likelihood of a recession as a potential reprieve to further key interest rate hikes in the near future.
Because of the changes in growth expectations and the rising rate environment, developed international investments trended downward during the 12 months ended October 31, 2022 and we believe the Morningstar value factor2 was a positive driver of Fund performance during the fiscal year ended October 31, 2022 as value stocks outperformed growth stocks3. The Morningstar size factor4, however, was a negative driver of Fund performance over the twelve months as small cap stocks underperformed large cap stocks. Overall, the positive performance derived from the Morningstar value factor exposures of the Underlying Index offset the negative performance of the Morningstar size factor, leading to the Underlying Index’s outperformance against the MSCI World ex-USA IMI Index5 by 0.25%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was +6 basis points (“bps”)6, which is reflective of the Fund’s management fee (-39 bps), stock selection/futures (+17 bps), securities lending (+8 bps) and dividend tax differential (+20 bps).
The Morningstar Developed Markets ex-US Factor Tilt Index is the intellectual property (including registered trademarks) of Morningstar and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by Morningstar and its Licensors and neither of the Licensors shall have any liability with respect thereto.
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
2 |
The Morningstar value factor seeks to identify stocks that are inexpensive relative to some measure of fundamental value (e.g., low price/book, low price/earnings, high dividend yields, etc.), which could result in outperformance relative to those that are pricier. |
3 |
Growth stocks are defined as those issued by companies that are anticipated to grow at a rate significantly above the average for the market. |
4 |
The Morningstar size factor measures a stock’s total capitalization, which can be found by multiplying the current share price by all the outstanding shares of the stock, and seeks to overweight smaller capitalization stocks. |
5 |
The Morgan Stanley Capital International World ex USA Investable Market Index captures large, mid and small cap representation across 22 of 23 Developed Markets (DM) countries – excluding the U.S. |
6 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
12 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Emerging Markets Factor Tilt Index Fund Ticker: TLTE
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 5 Year | 10 Year | Fund Inception 9/25/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (Based on Net Asset Value) |
-27.32 | % | -3.05 | % | 0.79 | % | 0.70 | % | ||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (Based on Market Price) |
-27.75 | % | -3.22 | % | -1.43 | % | 0.67 | % | ||||||||
Morningstar® Emerging Markets Factor Tilt IndexSM |
-26.66 | % | -2.32 | % | 1.50 | % | 1.45 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.60% and the net expense ratio is 0.59%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar® Emerging Markets Factor Tilt Index SM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to size and value factors relative to the Morningstar Emerging Markets Index (the “Parent Index”), a float-adjusted market-capitalization weighted index of companies incorporated in emerging-market countries. The Underlying Index seeks to achieve increased exposures to size and value factors, or a “factor tilt,” by adjusting the Parent Index’s constituent weights to achieve a slightly greater weight on companies with smaller market capitalizations or lower valuations, as determined by Morningstar, Inc., pursuant to its index methodology. The Underlying Index is designed to include companies with enhanced risk-return characteristics relative to the broader emerging equity market by featuring size and value risk premiums, which Northern Trust Investments, Inc. believes have been historically demonstrated over a full market cycle. As of October 31, 2022, there were 3,293 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on emerging market equities generally traded lower. Over the course of the 12-month period, the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising USD. Through Q4 of 2021, emerging equities traded lower as the rapid spread of the Omicron variant of Covid-19 stoked fears that a new round of lockdowns in China would hinder growth in the region. Russian equities were the worst performing market as geopolitical tensions with the West worsened due to the buildup of Russian troops on its border with Ukraine. Emerging markets continued to decline in Q1 of 2022 as Russia launched a full scale invasion into Ukraine and the U.S. and its European allies responded with sanctions. As part of
FLEXSHARES ANNUAL REPORT | 13 |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Emerging Markets Factor Tilt Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
these sanctions, Russian equity securities were removed from major emerging market indices in March. Increased Covid cases in China and the lockdown of several cities also weighed on markets. Due to rising commodity prices, equity markets in countries that export natural resources in Latin America and the Middle East were up for Q1 of 2022, but not enough to overcome the weakness in emerging markets in Europe and Asia Pacific. The selloff in emerging equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and USD strength increased the risk of a global recession. Emerging markets continued lower in October of 2022 driven primarily by declining China equity markets as Premier Xi was elected to a third five-year term, leading to speculation that nationalistic policies would be put in place that would limit China’s growth.
Investors showed a preference for value companies in emerging markets for the twelve months ending October 31, 2022, resulting in the high Morningstar value factor1 exposure being a positive driver of Fund performance as value stocks outperformed growth stocks.2 In addition, the Morningstar size factor3 was a positive driver of Fund performance over the twelve months as small cap stocks outperformed large cap stocks. Overall, the positive performance derived from the Morningstar value and size factor exposures of the Underlying Index was the primary source of the Underlying Index’s outperformance against the MSCI EM IMI Net Index4 by 3.43%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -66 basis points (“bps”)5, which is reflective of the Fund’s management fee (-59 bps), stock selection/futures (-12 bps), securities lending (+5 bps) and dividend tax differential (+1 bps), performance calculation differences between the Underlying Index and the Fund (-1 bp), India Capital Gains Taxes (-1 bps) and compounding of tracking error over time (+1 bps).
The Morningstar Emerging Markets Factor Tilt Index is the intellectual property (including registered trademarks) of Morningstar and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by Morningstar and its Licensors and neither of the Licensors shall have any liability with respect thereto.
1 |
The Morningstar value factor seeks to identify stocks that are inexpensive relative to some measure of fundamental value (e.g., low price/book, low price/earnings, high dividend yields, etc.), which could result in outperformance relative to those that are pricier. |
2 |
Growth stocks are defined as those issued by companies that are anticipated to grow at a rate significantly above the average for the market. |
3 |
The Morningstar size factor measures a stock’s total capitalization, which can be found by multiplying the current share price by all the outstanding shares of the stock, and seeks to overweight smaller capitalization stocks. |
4 |
The Morgan Stanley Capital International Emerging Markets Investable Market Index (IMI) captures large, mid and small cap representation across 27 Emerging Markets (EM) countries. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
14 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Quality Large Cap Index Fund Ticker: QLC
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 9/23/2015 |
|||||||||||||
|
|
|||||||||||||||
FlexShares US Quality Large Cap Index Fund Index Fund (Based on Net Asset Value) |
-12.98 | % | 9.08 | % | 7.97 | % | 9.73 | % | ||||||||
FlexShares US Quality Large Cap Index Fund Index Fund (Based on Market Price) |
-12.88 | % | 9.09 | % | 7.91 | % | 9.74 | % | ||||||||
S&P 500 Index |
-14.61 | % | 10.21 | % | 10.44 | % | 12.31 | % | ||||||||
Northern Trust Quality Large Cap IndexSM |
-12.71 | % | 9.40 | % | 8.25 | % | 10.06 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. Prior to July 11, 2022, the gross expense ratio of the Fund was 0.33% and the net expense ratio was 0.32%. Effective July 11, 2022, the gross expense ratio of the Fund is 0.26% and the net expense ratio is 0.26%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Large Cap IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to quality, value and momentum factors relative to a universe of publicly traded U.S. large-capitalization equity securities. The universe is comprised of the 600 largest companies in the Northern Trust 1250 Index, a float- adjusted market-capitalization weighted index of U.S. domiciled companies. The Underlying Index is designed to include companies with enhanced risk-return characteristics relative to the broader U.S. large-cap equity market by featuring quality, value and momentum risk premiums, which Northern Trust Investments, Inc. (“NTI”) believes have been historically demonstrated over a full market cycle. As of October 31, 2022, there were 173 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate1 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. Q1 of 2022 also saw a wide variance in sector performance as
FLEXSHARES ANNUAL REPORT | 15 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Quality Large Cap Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
energy companies had outsized positive performance while the technology and communication services sectors were the worst performers. The selloff of U.S. equities accelerated in Q2 of 2022 as the Fed moved forward with aggressive key interest rate hikes to seek to combat rising inflation. The Fed increased the key interest rate by 0.50% in May and by 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. Economic data was better than expected, but there were some signals that a slowdown may be coming. U.S. equity markets continued lower in Q3 of 2022 as the Fed continued raising the key interest rate with two 0.75% increases in July and September. Gross Domestic Product data showed year-over-year growth to be negative for Q2 of 2022, marking the second consecutive quarter of negative growth. Domestic equities rebounded in October of 2022 as corporate earnings reported over the month were generally better than expected. Sector performance dispersion was again large as the energy sector continued to outpace the rest of the U.S. equity market.
Because of the changes in growth expectations and the rising rate environment, U.S. domestic investments trended downward during the 12 months ended October 31, 2022 and we believe the value factor2 was a positive driver of Fund performance during the fiscal year ended October 31, 2022 as value stocks outperformed growth stocks3. In addition, we believe that investors showed a preference for high quality factor4 companies within the large cap universe utilized by the Underlying Index, resulting in the high-quality factor exposure enhancing Fund performance over the 12 months. The momentum factor exposure5 of the Underlying Index was also a positive driver of Fund performance as positive momentum companies outperformed negative momentum companies over the twelve months. Overall, the positive performance from the value, quality and momentum exposures of the Underlying Index were the primary sources of the Underlying Index’s outperformance relative to the
S&P 500 Index6 by 1.90%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -27 basis points (“bps”)7, which is reflective of the management fee (-25 bps), stock selection/futures (-5 bps), securities lending (+1 bps), performance calculation differences between the Underlying Index and the Fund (+1 bps) and compounding of tracking error over time (+1 bps).
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
2 |
The value factor is a factor reflecting the current worth of a company relative to its own historical value, book value, or valuation versus peers. |
3 |
Growth stocks are defined as those issued by companies that are anticipated to grow at a rate significantly above the average for the market. |
4 |
The quality factor is a factor that seeks to identify companies that exhibit financial strength and stability relative to the market. |
5 |
The momentum factor is a factor that reflects market sentiment and changes in security price over a given time period. |
6 |
The Standard & Poor’s 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
16 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
STOXX® US ESG Select Index Fund Ticker: ESG
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 7/13/2016 |
|||||||||||||
|
|
|||||||||||||||
FlexShares STOXX® US ESG Select Index Fund (Based on Net Asset Value) |
-16.51 | % | 10.27 | % | 10.61 | % | 12.02 | % | ||||||||
FlexShares STOXX® US ESG Select Index Fund (Based on Market Price) |
-16.52 | % | 10.27 | % | 10.59 | % | 12.03 | % | ||||||||
Russell 1000® Index |
-16.38 | % | 9.98 | % | 10.20 | % | 11.60 | % | ||||||||
STOXX® USA ESG Select KPIs Index |
-16.61 | % | 10.07 | % | 10.13 | % | 11.53 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.33% and the net expense ratio is 0.32%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX USA ESG Select KPIs Index (“Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, score better with respect to a set of environmental, social and governance (“ESG”) key performance indicators relative to the U.S. companies in the STOXX Global 1800 Index, a float adjusted market-capitalization weighted index of companies incorporated in the U.S. and in developed international markets. As of October 31, 2022, there were 271 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate1 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. Q1 of 2022 also saw a wide variance in sector performance as energy companies had outsized positive performance while the technology and communication services sectors were the
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
FLEXSHARES ANNUAL REPORT | 17 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
STOXX® US ESG Select Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
worst performers. The selloff of U.S. equities accelerated in Q2 of 2022 as the Fed moved forward with aggressive key interest rate hikes to seek to combat rising inflation. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. Economic data was better than expected, but there were some signals that a slowdown may be coming. U.S. equity markets continued lower in Q3 of 2022 as the Fed continued raising the key interest rate with two 0.75% increases in July and September. Gross Domestic Product data showed year-over-year growth to be negative for Q2 of 2022, marking the second consecutive quarter of negative growth. Domestic equities rebounded in October of 2022 as corporate earnings reported over the month were generally better than expected. Sector performance dispersion was again large as the energy sector continued to outpace the rest of the U.S. equity market.
The Underlying Index had a negative total return during the 12 months ended October 31, 2022, and underperformed domestic equity markets, as defined by the Russell 1000® Index2 by -0.23%. The Underlying Index’s ESG-tilted approach led to overweight Fund exposure to the communication services and consumer discretionary sectors that detracted from Fund performance. Likewise, the ESG tilt led to underweights to the industrials, consumer staples, materials and utilities sectors that were negative drivers of Fund performance. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was +10 basis points (“bps”)3, which is reflective of the management fee (-32 bps), stock selection/futures (-4 bps) and dividend tax differential (+46 bps).
The STOXX USA ESG Select KPIs Index is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by STOXX and its Licensors and neither of the Licensors shall have any liability with respect thereto.
2 |
The Russell 1000® Index refers to a stock market index that represents the 1000 top companies in the United States. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
18 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
STOXX® Global ESG Select Index Fund Ticker: ESGG
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 7/13/2016 |
|||||||||||||
|
|
|||||||||||||||
FlexShares STOXX® Global ESG Select Index Fund (Based on Net Asset Value) |
-19.35 | % | 6.71 | % | 6.93 | % | 9.35 | % | ||||||||
FlexShares STOXX® Global ESG Select Index Fund (Based on Market Price) |
-19.55 | % | 6.70 | % | 6.89 | % | 9.35 | % | ||||||||
MSCI World Index |
-18.48 | % | 6.11 | % | 6.37 | % | 8.55 | % | ||||||||
STOXX® Global ESG Select KPIs Index |
-19.30 | % | 6.79 | % | 6.99 | % | 9.37 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.43% and the net expense ratio is 0.42%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX Global ESG Select KPIs Index (the “Underlying Index”) The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, score better with respect to a set of environmental, social and governance (“ESG”) key performance indicators relative to the STOXX Global 1800 Index, the parent index, a float-adjusted market-capitalization weighted index of companies incorporated in the U.S. and in developed international markets. As of October 31, 2022, there were 887 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on global equities generally traded lower. Through Q4 of 2021 global equity markets rose as economic data suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. Global equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. The selloff in global equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. Global equities traded higher in October of 2022 as corporate earnings reported over the month were generally better than expected.
The Underlying Index had a negative total return during the 12 months ended October 31, 2022 and underperformed global equity markets, as defined by the MSCI World Index1, by -0.82%. The Underlying
1 |
The Morgan Stanley Capital International World Index captures large and mid-cap representation across 23 Developed Markets countries. |
FLEXSHARES ANNUAL REPORT | 19 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
STOXX® Global ESG Select Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Index’s ESG-tilted approach led to underweight Fund exposure to the industrials, utilities and financials sectors as well as an overweight to the consumer discretionary sector that detracted from Fund performance. The ESG tilt also led to overweights to the healthcare and technology sectors that were beneficial to Fund performance. Overall the overweights to healthcare and technology were not enough to overcome the negative performance in other sector overweights and underweights and the Underlying Index underperformed the MSCI World Index. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -5 basis points (“bps”)2, which is reflective of the management fee (-42 bps), stock selection/futures (-2 bps), securities lending (+1 bps), dividend tax differential (+39 bps), and compounding of tracking error over time (-1 bps).
The STOXX Global ESG Select KPIs Index is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by STOXX and its Licensors and neither of the Licensors shall have any liability with respect thereto.
2 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
20 | FLEXSHARES ANNUAL REPORT |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Large Cap Core Index Fund Ticker: FEUS
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | Fund Inception 9/20/2021 |
|||||||
|
|
|||||||
FlexShares ESG & Climate US Large Cap Core Index Fund (Based on Net Asset Value) |
-16.09 | % | -9.40 | % | ||||
FlexShares ESG & Climate US Large Cap Core Index Fund (Based on Market Price) |
-16.07 | % | -9.40 | % | ||||
S&P 500 Index |
-14.61 | % | -8.73 | % | ||||
Northern Trust ESG & Climate US Large Cap Core Index |
-16.08 | % | -9.35 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.10% and the net expense ratio is 0.09%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust ESG & Climate US Large Cap Core IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that exhibit certain environmental, social and governance (“ESG”) characteristics, while also seeking to provide broad-market, core exposure to publicly-traded U.S. large capitalization equity securities, i.e., the 600 largest companies in the Northern Trust 1250 IndexSM (the “Starting Universe”), as measured by largest float adjusted market capitalization. The Underlying Index is designed to minimize tracking differences relative to the Starting Universe, while also seeking (a) an aggregate higher scoring of certain ESG characteristics, as measured by the Northern Trust ESG Vector Score, and (b) reduction of aggregate climate-related risk, as measured by certain carbon-related risk metrics, each relative to the Starting Universe. As of October 31, 2022, there were 185 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate1 by 0.25% in March
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
FLEXSHARES ANNUAL REPORT | 21 |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Large Cap Core Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
2022 and signaled more aggressive key interest rate hikes may be necessary. Q1 of 2022 also saw a wide variance in sector performance as energy companies had outsized positive performance while the technology and communication services sectors were the worst performers. The selloff of U.S. equities accelerated in Q2 of 2022 as the Fed moved forward with aggressive key interest rate hikes to seek to combat rising inflation. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. Economic data was better than expected, but there were some signals that a slowdown may be coming. U.S. equity markets continued lower in Q3 of 2022 as the Fed continued raising the key interest rate with two 0.75% increases in July and September. Gross Domestic Product data showed year-over-year growth to be negative for Q2 of 2022, marking the second consecutive quarter of negative growth. Domestic equities rebounded in October of 2022 as corporate earnings reported over the month were generally better than expected. Sector performance dispersion was again large as the energy sector continued to outpace the rest of the U.S. equity market.
Surging commodity prices and concerns over natural resource shortages had a negative impact on the climate-related tilt of the Fund as companies that scored poorer on carbon-related measures outperformed during the 12 months ended October 31, 2022. In addition, companies with higher ESG characteristics also were a negative driver of Fund performance over the 12 months. Overall, the negative performance from the climate-related risk reduction and the aggregate higher ESG characteristics of the Underlying Index were the primary sources of the Underlying Index’s underperformance relative to the S&P 500 Index2 by -1.47%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -1 basis point (“bps”)3, which is reflective of the management fee
(-9 bps), stock selection/futures (+6 bps), performance calculation differences between the Underlying Index and the Fund (+1 bps) and compounding of tracking error over time (+1 bps).
2 |
The Standard & Poor’s 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
22 | FLEXSHARES ANNUAL REPORT |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Developed Markets ex-US Core Index Fund Ticker: FEDM
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year |
Fund Inception 9/20/2021 |
|||||||
|
|
|||||||
FlexShares ESG & Climate Developed Markets Ex-US Core Index Fund (Based on Net Asset Value) |
-23.36 | % | -19.59 | % | ||||
FlexShares ESG & Climate Developed Markets Ex-US Core Index Fund (Based on Market Price) |
-23.47 | % | -19.39 | % | ||||
MSCI World ex-US Index |
-22.04 | % | -18.81 | % | ||||
Northern Trust ESG & Climate Developed Markets ex-US Core Index |
-23.43 | % | -19.73 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.13% and the net expense ratio is 0.12%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust ESG & Climate Developed Markets ex-US Core IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that exhibit certain environmental, social and governance (“ESG”) characteristics, while also seeking to provide broad-market, core exposure to publicly traded equity securities issued by companies domiciled in developed market countries, excluding the U.S. The Underlying Index is designed to minimize tracking differences relative to the Northern Trust Developed Markets ex-US Large Cap IndexSM (the “Parent Index”), while also seeking (a) an aggregate higher scoring of certain ESG characteristics, as measured by the Northern Trust ESG Vector Score, and (b) reduction of aggregate climate-related risk, as measured by certain carbon-related risk metrics, each relative to the Parent Index. As of October 31, 2022, there were 309 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on developed international equities generally traded lower. Over the course of the 12-month period the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising USD. Through Q4 of 2021, developed international markets were relatively flat as strength in the European and U.K. equity markets was offset by weakness is the Asia Pacific equity markets. The emergence of the Omicron variant of Covid-19 weighed on equities in Hong Kong and Singapore as investors feared additional lockdowns in China would impact these equity markets.
FLEXSHARES ANNUAL REPORT | 23 |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Developed Markets ex-US Core Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Developed international equities declined in Q1 of 2022 as Russia’s invasion of Ukraine contributed to rising inflation and fears that energy supply shortages would impact economic growth. Equity markets in Hong Kong and Taiwan were also negatively impacted by a sharp rise in the number of Covid cases in China, leading to an increased number of cities being placed under lockdown. The selloff in developed international equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. As global central banks struggled to keep pace with the aggressive key interest rate1 hikes by the U.S. Federal Reserve, the increasing interest rate differential caused the USD to strengthen versus many developed international market currencies. Developed international equities generally traded higher in October of 2022 as corporate earnings showed resilience and investors interpreted statements by the European Central Bank regarding the likelihood of a recession as a potential reprieve to further key interest rate hikes in the near future.
Surging commodity prices and concerns over natural resource shortages had a negative impact on the climate-related tilt of the Fund as companies that scored poorer on carbon-related measures outperformed during the 12 months ended October 31, 2022. In addition, companies with higher ESG characteristics also were a negative driver of Fund performance over the 12 months. Overall, the negative performance from the climate-related risk reduction and the aggregate higher ESG characteristics of the Underlying Index were the primary sources of the Underlying Index’s underperformance relative to the MSCI World ex-US Index2 by -1.39%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was +7 basis points (“bps”)3, which is reflective of
the management fee (-12 bps), stock selection/futures (+19 bps), dividend tax differential (+2 bps), and compounding of tracking error over time (-2 bps).
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
2 |
The MSCI World ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries*— excluding the United States. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
24 | FLEXSHARES ANNUAL REPORT |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Emerging Markets Core Index Fund Ticker: FEEM
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
Fund Inception |
||||
|
|
|||
FlexShares ESG & Climate Emerging Markets Core Index Fund (Based on Net Asset Value) |
-21.47 | % | ||
FlexShares ESG & Climate Emerging Markets Core Index Fund (Based on Market Price) |
-21.00 | % | ||
MSCI Emerging Markets Index |
-21.06 | % | ||
Northern Trust ESG & Climate Emerging Markets Core Index |
-21.66 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.19% and the net expense ratio is 0.18%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust ESG & Climate Emerging Markets Core IndexSM (the “Underlying Index”) The Underlying Index is designed to reflect the performance of a selection of companies that exhibit certain environmental, social and governance (“ESG”) characteristics, while also seeking to provide broad-market, core exposure to publicly traded equity securities issued by companies domiciled in emerging market countries. The Underlying Index is designed to minimize tracking differences relative to the Northern Trust Emerging Markets Large Cap IndexSM (the “Parent Index”), while also seeking (a) an aggregate higher scoring of certain ESG characteristics, as measured by the Northern Trust ESG Vector Score, and (b) reduction of aggregate climate-related risk, as measured by certain carbon-related risk metrics, each relative to the Parent Index. As of October 31, 2022, there were 251 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the period ending October 31, 20221, prices on emerging market equities generally traded lower. Over the course of the period ending October 31, 2022, the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising of the dollar. Through Q2 and Q3 of 2022 emerging equities traded lower as Russia’s invasion of Ukraine continued and the U.S. and its European allies responded with sanctions. The selloff was also impacted by rising inflation, energy shortages and USD strength that increased the risk of a global
1 |
The Fund commenced investment operations on April 20, 2022. |
FLEXSHARES ANNUAL REPORT | 25 |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Emerging Markets Core Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
recession. Emerging markets continued lower in October of 2022 driven primarily by declining China equity markets as Premier Xi was elected to a third five-year term, leading to speculation that nationalistic policies would be put in place that would limit China’s growth.
From inception through October 31, 2022 the total return for the Fund was -21.47% compared to the MSCI Emerging Markets Index2 that returned -21.06%. Surging commodity prices and concerns over natural resource shortages had a negative impact on the climate-related tilt of the Fund as companies that scored poorer on carbon-related measures outperformed during the period from inception through October 31, 2022. In addition, companies with higher ESG characteristics also were a negative driver of Fund performance over the period ending October 31, 2022. Overall, the negative performance from the climate-related risk reduction and the aggregate higher ESG characteristics of the Underlying Index were the primary sources of the Underlying Index’s underperformance relative to the MSCI World ex-US Index by -36 basis points (“bps”)3. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the period from inception through October 31, 2022 was +19 bps, which is reflective of the management fee (-9 bps), stock selection/futures (+18 bps), performance calculation differences between the Underlying Index and the Fund (+1 bps) and compounding of tracking error over time (+9 bps).
26 | FLEXSHARES ANNUAL REPORT |
2 |
The MSCI Emerging Markets Index captures large and mid cap representation across 24 Emerging Markets (EM) countries. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Upstream Natural Resources Index Fund Ticker: GUNR
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 5 Year | 10 Year | Fund Inception 9/16/2011 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund (Based on Net Asset Value) |
12.20 | % | 9.34 | % | 4.88 | % | 4.45 | % | ||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund (Based on Market Price) |
12.01 | % | 9.30 | % | 4.85 | % | 4.46 | % | ||||||||
Morningstar® Global Upstream Natural Resources IndexSM |
12.96 | % | 9.93 | % | 5.36 | % | 4.88 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.47% and the net expense ratio is 0.46%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Global Upstream Natural Resources IndexSM (the “Underlying Index”). The Underlying Index reflects the performance of a selection of equity securities that are traded in or are issued by companies classified as developed or emerging markets (including the U.S.), as determined by Morningstar, Inc., the index provider, pursuant to its index methodology. The companies included in the Underlying Index have significant business operations in the ownership, management and/or production of natural resources in energy, agriculture, precious or industrial metals, timber and water resources sectors, as determined by the index provider, pursuant to its index methodology. As of October 31, 2022, there were 120 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective and a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on global equities generally traded lower. Through Q4 of 2021, U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. Commodity and natural resources prices surged in Q1 of 2022 as we believe investor concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the potential impact of sanctions from the U.S. and European countries on overall global commodity prices. As part of these sanctions, Russian equity securities were removed from market indices in early March. Many commodity and natural resources prices moved higher during the fiscal year, especially crude oil, refined oil products and grains. Supplies of these raw materials from Russia and Ukraine were disrupted leading to concerns over shortages in 2022 and beyond. The sudden removal of energy supplies in Q1 of 2022 due to sanctions against Russian energy exports, combined by production discipline by the Organization of Petroleum Exporting
FLEXSHARES ANNUAL REPORT | 27 |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Upstream Natural Resources Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Countries (OPEC) and limitations on oilfield equipment and labor all combined to lower global supplies while energy demand remained fairly steady. European natural gas price increases reached record highs as Russia severally restricted supplies. West Texas Intermediate (“WTI”) crude oil prices began the fiscal year near $84 per barrel, spiked to over $120 per barrel in March and again in Q3 of 2022 eventually ending the fiscal year over $85 per barrel1. U.S. natural gas futures were up nearly 53%2 during the same time span, while Euro natural gas futures were 30% higher after raising as much as 380%3 by August.
In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate4 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q2 of 2022, the Fed moved forward with two more rounds of key interest rate rate hikes in an effort to combat rising inflation as seen in the Consumer Price Index.5 The Fed continued raising the key interest rate again with two 0.75% increases in July and September. Due to these continuing key interest rate hikes, the U.S. dollar (USD) rose significantly in comparison to other global currencies. A stronger USD is typically a negative for global commodity prices and negatively impacts U.S. investors’ returns on foreign equity holdings.
Overall Industrial metals prices, such as copper, aluminum, zinc and tin were lower for the fiscal year. Prices fell during the period as China, the top marginal consumer of many of these metals, shutdown major areas of the country due to the country’s zero-COVID virus policy. Additionally, China’s real estate sector saw a slowdown due to the COVID shutdowns and leverage concerns among many property developers, thereby slowing construction. Prices were volatile during the period as concerns over supplies normally derived from Russia plus the uncertainty over future global growth with tightening Central Bank monetary policies and the European energy crisis. Precious metals prices were lower as higher interest rates and the strong USD lessened demand. Lithium saw strong price performance due to increasing environmental battery demand and continued challenges in supplies.
Grains posted strong price performance for a third straight year as the Ukraine conflict, droughts in Europe and other grain growing regions limited global supplies. Protein prices (cattle, hogs, poultry, and fish) also posted strong price performance. U.S. fertilizer chemicals (potash, nitrogen, phosphate) were all materially higher on increased input costs, supply constraints and global demand. U.S. lumber prices were especially volatile during the fiscal year. Continued housing demand combined with lumber mill capacity issues drove lumber futures prices6 up significantly by end of Q1 of 2022. We believe once U.S. mortgage rates moved higher in response to the change in the Fed’s monetary policy and housing demand fell, lumber futures subsequently declined by the end of the fiscal year.
For the 12-month period ended October 31, 2022, the Underlying Index outperformed the global natural resource equity markets, as defined by the S&P Global Natural Resources Index7, by +681 basis points (bps)8. Due to the Underlying Index’s focus on the upstream section of the natural resource supply chain, security selection in Energy aided returns. Sector allocation and security selection in Agriculture, Metals and Timber also benefitted performance versus the benchmark. The Water Resources sector was a drag on performance as higher interest rates negatively impacted returns due to the capital intensive nature of the sector. Tracking difference for the period between the Fund’s NAV and the Underlying Index was -76 bps, which is reflective of the Fund’s management fee (-46 bps), futures (-19 bps), foreign dividend tax differential treatment (+4 bps), securities lending (+3 bps), security selection (-1 bps), transaction costs (-3 bps), and other expenses including compounding of expenses during rising markets (-14 bps).
The Morningstar Global Upstream Natural Resources Index is the intellectual property (including registered trademarks) of Morningstar and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by Morningstar and its Licensors and neither of the Licensors shall have any liability with respect thereto.
1 |
Source: Bloomberg, USCRWTIC Index (October 31, 2021 – October 31, 2022). |
2 |
Source: Bloomberg, NGUSHHUB Commodity (October 31, 2021 – October 31, 2022). |
3 |
Source: Bloomberg, TTFG1MON Commodity (October 31, 2021 – October 31, 2022). |
4 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
5 |
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. |
6 |
Source: Bloomberg, LB1 Lumber Generic Near Term Commodity Contract (October 31, 2021 – October 31, 2022). |
7 |
The Standard & Poor’s Global Natural Resources Index includes 90 of the largest publicly-traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified and investable equity exposure across 3 primary commodity-related sectors: agribusiness, energy, and metals & mining. |
8 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
28 | FLEXSHARES ANNUAL REPORT |
FlexShares® STOXX® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Broad Infrastructure Index Fund Ticker: NFRA
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 10/8/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund (Based on Net Asset Value) |
-13.92 | % | -0.28 | % | 2.85 | % | 4.80 | % | ||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund (Based on Market Price) |
-13.90 | % | -0.26 | % | 2.87 | % | 4.81 | % | ||||||||
STOXX® Global Broad Infrastructure Index |
-13.99 | % | -0.39 | % | 2.73 | % | 4.70 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.48% and the net expense ratio is 0.47%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX Global Broad Infrastructure Index (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, offer broad exposure to publicly traded developed- and emerging-market infrastructure companies, including U.S. companies, as defined by STOXX Ltd. (“STOXX”) pursuant to its index methodology. As of October 31, 2022, there were 176 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on global equities generally traded lower. Through Q4 of 2021 global equity markets rose as economic data suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. Global equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. As part of these sanctions, Russian equity securities were removed from major global indices in March of 2022. The selloff in global equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. Global equities traded higher in October of 2022 as corporate earnings reported over the month were generally better than expected.
The Underlying Index had a negative total return during the 12 months ended October 31, 2022, and underperformed the global infrastructure market, as defined by
FLEXSHARES ANNUAL REPORT | 29 |
FlexShares® STOXX® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Broad Infrastructure Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
the S&P Global Infrastructure Index,1 by -8.56%. The Underlying Index’s exposures to the communication, energy, utilities and social infrastructure sectors negatively contributed to Fund performance, while exposure to transportation infrastructure positively benefited Fund performance. The tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was +7 basis points (“bps”)2, which is reflective of the Fund’s management fee (-47 bps), stock selection/futures (+5 bps), securities lending (+3 bps), dividend tax differential (+49 bps), India Cap Gain Taxes (-1 bps) and compounding of tracking error over time (-2 bps).
The STOXX Global Infrastructure Index is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by STOXX and its Licensors and neither of the Licensors shall have any liability with respect thereto.
1 |
The S&P Global Infrastructure Index is designed to track 75 companies from around the world chosen to represent the listed infrastructure industry while maintaining liquidity and tradability. |
2 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
30 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Quality Real Estate Index Fund Ticker: GQRE
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 11/5/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Global Quality Real Estate Index Fund (Based on Net Asset Value) |
-23.51 | % | -5.01 | % | -0.46 | % | 3.33 | % | ||||||||
FlexShares Global Quality Real Estate Index Fund (Based on Market Price) |
-23.82 | % | -5.09 | % | -0.52 | % | 3.32 | % | ||||||||
FTSE EPRA/NAREIT Developed IndexSM |
-24.95 | % | -6.32 | % | -0.17 | % | 2.20 | % | ||||||||
Northern Trust Global Quality Real Estate IndexSM |
-23.75 | % | -5.26 | % | -0.60 | % | 3.22 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.46% and the net expense ratio is 0.45%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Global Quality Real Estate IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to quality, value and momentum factors relative to the Northern Trust Global Real Estate Index (the “Parent Index”), a float-adjusted market-capitalization weighted index of publicly traded equity securities of U.S. and non-U.S. real estate investment trusts and real estate operating companies. In addition, the Underlying Index is designed to include companies with enhanced risk-return characteristics relative to the global publicly traded real-estate market by featuring quality, value and momentum risk premiums, which Northern Trust Investments, Inc. (“NTI”) believes have been historically demonstrated over a full market cycle. As of October 31, 2022, there were 145 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on global equities generally traded lower. Through Q4 of 2021 global equity markets rose as economic data suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. Global equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. As part of these sanctions, Russian equity securities were removed from major global indices in March of 2022. The selloff in global equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a
FLEXSHARES ANNUAL REPORT | 31 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Quality Real Estate Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
global recession. Global equities traded higher in October of 2022 as corporate earnings reported over the month were generally better than expected.
The Underlying Index had a negative total return during the 12 months ended October 31, 2022, but outperformed the global equity real estate markets, as defined by the FTSE EPRA/NAREIT Developed Net Index1, by 1.20%. The quality2 and momentum3 factor exposures of the Underlying Index were positive drivers of Fund performance while the value4 factor exposure was a negative driver of Fund performance. Overall, the positive exposure to quality and momentum was enough to offset the headwinds from the negative performance derived from the value exposure. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the period was +24 basis points (“bps”)5, which is reflective of the Fund’s management fee (-45 bps), stock selection/futures (+34 bps), securities lending (+2 bps), dividend tax differential (+37 bps), performance calculation differences between the Underlying Index and the Fund (-1 bp) and compounding of tracking error over time (-3 bps).
1 |
The FTSE EPRA/NAREIT Developed Net Index is an index designed to track the performance of listed real estate companies in both developed and emerging countries worldwide. |
2 |
The quality factor is a factor that seeks to identify companies that exhibit financial strength and stability relative to the Parent Index. |
3 |
The momentum factor is a factor that reflects market sentiment and changes in a security price over a given time period. |
4 |
The value factor is a factor reflecting the current worth of a company relative to its own historical value, book value or valuation versus peers. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
32 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Real Assets Allocation Index Fund Ticker: ASET
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 11/23/2015 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Real Assets Allocation Index Fund (Based on Net Asset Value) |
-11.49 | % | 1.19 | % | 3.40 | % | 5.03 | % | ||||||||
FlexShares Real Assets Allocation Index Fund (Based on Market Price) |
-11.46 | % | 1.18 | % | 3.34 | % | 5.05 | % | ||||||||
MSCI ACWI Index |
-19.96 | % | 4.84 | % | 5.24 | % | 7.29 | % | ||||||||
Northern Trust Real Assets Allocation IndexSM |
-11.34 | % | 1.32 | % | 3.52 | % | 5.16 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 1.05% and the net expense ratio is 0.57%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Real Assets Allocation IndexSM (the “Underlying Index”). The Fund is a fund of funds and seeks to achieve its investment objective by investing primarily in the shares of other FlexShares ETFs (each an “Underlying Fund,” and together, the “Underlying Funds”) that are eligible for inclusion in the Underlying Index, rather than in securities of individual companies. The Underlying Funds themselves seek investment results corresponding to their own respective underlying indexes. The Underlying Funds invest primarily in separate sets of securities representing or providing exposures to global “real assets.” Real assets are defined by the index provider as physical or tangible assets. Examples of real assets include but are not limited to commodities, precious metals, oil, and real estate. Each Underlying Fund has its own risk profile and will contribute differently to the overall risk profile of the Fund. Each of the Underlying Funds invests in equity securities that are traded in or are issued by companies domiciled in global developed or emerging markets (including the U.S.). Certain of the Underlying Funds may invest in publicly traded units of master limited partnerships and real estate investment trusts. As of October 31, 2022, there were three Underlying Funds in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI generally intends to replicate the constituent securities of the Underlying Index to manage the Fund but may use representative sampling in certain circumstances. “Representative sampling” means investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. When the Fund uses representative sampling, it may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on global equities generally traded lower. Through Q4 of 2021 global equity markets rose as economic data suggested continued growth, allaying concerns
FLEXSHARES ANNUAL REPORT | 33 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Real Assets Allocation Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
over a spike in Covid cases due to the Omicron variant. Global equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. As part of these sanctions, Russian equity securities were removed from major global indices in March of 2022. The selloff in global equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. Global equities traded higher in October of 2022 as corporate earnings reported over the month were generally better than expected.
The Underlying Index had a negative total return during the 12 months ended October 31, 2022, but outperformed the global equity markets, as defined by the MSCI All Country World Index (ACWI)1 by 8.62%. The Underlying Index outperformed the MSCI All Country World Index due to the Underlying Index’s greater allocation to infrastructure relative to its real estate allocation, as well as its inclusion of natural resources, which had a positive total return for the 12 months. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the period was -15 basis points (“bps”)2, which is largely reflective of the Fund’s management fee (-57 bps), a reimbursement amount equal to the Acquired Fund Fees and Expenses attributable to the Fund’s investments in the Underlying Funds (+46 bps), stock selection/futures (-3 bps) and performance calculation differences between the Underlying Index and the Fund (-1 bp).
1 |
The Morgan Stanley Capital International All Country World Index is a market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI) and is designed to provide a broad measure of stock performance throughout the world. |
2 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
34 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Index Fund Ticker: QDF
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 12/14/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Quality Dividend Index Fund (Based on Net Asset Value) |
-8.29 | % | 6.90 | % | 7.31 | % | 10.86 | % | ||||||||
FlexShares Quality Dividend Index Fund (Based on Market Price) |
-8.27 | % | 6.89 | % | 7.31 | % | 10.87 | % | ||||||||
Russell 1000® Index |
-16.38 | % | 9.98 | % | 10.20 | % | 12.74 | % | ||||||||
Northern Trust Quality Dividend IndexSM |
-7.95 | % | 7.45 | % | 7.84 | % | 11.39 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.38% and the net expense ratio is 0.37%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally, before fees and expenses, to the price and yield performance of the Northern Trust Quality Dividend IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust 1250 Index (the “Parent Index”)1. In addition, the Underlying Index is designed to select companies from the Parent Index that have enhanced risk-return characteristics and that in the aggregate have the potential to generate income in excess of the income generated by securities in the Parent Index with a beta2 that is similar to that of the Parent Index. As of October 31, 2022, there were 127 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by
1 |
Northern Trust 1250 Index is a float-adjusted market-capitalization weighted index comprised of U.S. domiciled large- and mid-capitalization companies. |
2 |
A statistical measure of the volatility, or sensitivity, of rates of return on a portfolio or security compared to a market index and time period. The beta for an ETF measures the expected change in return of the ETF relative to the return of a designated index. By definition, the beta of the Standard & Poor’s (“S&P”) 500 Index is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the S&P 500 Index in rising markets and 10% worse in falling markets. |
FLEXSHARES ANNUAL REPORT | 35 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate3 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. Q1 of 2022 also saw a wide variance in sector performance as energy companies had outsized positive performance while the technology and communication services sectors were the worst performers. The selloff of U.S. equities accelerated in Q2 of 2022 as the Fed moved forward with aggressive key interest rate hikes to seek to combat rising inflation. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. Economic data was better than expected, but there were some signals that a slowdown may be coming. U.S. equity markets continued lower in Q3 of 2022 as the Fed continued raising the key interest rate with two 0.75% increases in July and September. Gross Domestic Product data showed year-over-year growth to be negative for Q2 of 2022, marking the second consecutive quarter of negative growth. Domestic equities rebounded in October of 2022 as corporate earnings reported over the month were generally better than expected. Sector performance dispersion was again large as the energy sector continued to outpace the rest of the U.S. equity market.
Because of the changes in growth expectations and the rising rate environment, U.S. domestic investments trended downward during the 12 months ended October 31, 2022 and we believe the dividend yield factor4 was a positive driver of Fund performance as higher yielding investments outperformed lower yielding and non-dividend paying investments. In addition, we believe that the changes experienced in the macroeconomic environment as well as the increase in interest rates were conducive to high quality factor5 companies, resulting in the high-quality factor exposure augmenting Fund performance over the
12 months. Overall, the positive performance derived from the dividend and quality factor exposures of the Underlying Index were the primary sources of the Underlying Index’s outperformance against the Russell 1000® Index6 by 8.43%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -34 basis points (“bps”)7, which is reflective of the management fee (-37 bps), stock selection/futures (-1 bps), securities lending (+3 bps), and compounding of tracking error over time (+1 bps).
3 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
4 |
Dividend yield factor is a factor that seeks to identify companies that realize a dividend yield above the Parent Index. |
5 |
The quality factor is a factor that seeks to identify companies that exhibit stable returns relative to the market. |
6 |
The Russell 1000® Index refers to a stock market index that represents the 1000 top companies in the United States. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
36 | FLEXSHARES ANNUAL REPORT |
FlexShares® Quality | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Dividend Defensive Index Fund Ticker: QDEF
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 12/14/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Quality Dividend Defensive Index Fund (Based on Net Asset Value) |
-7.53 | % | 5.86 | % | 7.51 | % | 10.78 | % | ||||||||
FlexShares Quality Dividend Defensive Index Fund (Based on Market Price) |
-7.48 | % | 5.87 | % | 7.53 | % | 10.78 | % | ||||||||
Russell 1000® Index |
-16.38 | % | 9.98 | % | 10.20 | % | 12.74 | % | ||||||||
Northern Trust Quality Dividend Defensive IndexSM |
-7.09 | % | 6.23 | % | 8.10 | % | 11.33 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.38% and the net expense ratio is 0.37%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally, before fees and expenses, to the price and yield performance of the Northern Trust Quality Dividend Defensive IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust 1250 Index (the “Parent Index”)1. In addition, the Underlying Index is designed to select companies from the Parent Index that have enhanced risk-return characteristics and that in the aggregate have the potential to generate income in excess of the income generated by securities in the Parent Index with a beta2 that is lower in relation to that of the Parent Index. As of October 31, 2022, there were 109 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by
1 |
Northern Trust 1250 Index is a float-adjusted market-capitalization weighted index comprised of U.S. domiciled large- and mid-capitalization companies. |
2 |
A statistical measure of the volatility, or sensitivity, of rates of return on a portfolio or security compared to a market index and time period. The beta for an ETF measures the expected change in return of the ETF relative to the return of a designated index. By definition, the beta of the Standard & Poor’s (“S&P”) 500 Index is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the S&P 500 Index in rising markets and 10% worse in falling markets. |
FLEXSHARES ANNUAL REPORT | 37 |
FlexShares® Quality | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Dividend Defensive Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate3 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. Q1 of 2022 also saw a wide variance in sector performance as energy companies had outsized positive performance while the technology and communication services sectors were the worst performers. The selloff of U.S. equities accelerated in Q2 of 2022 as the Fed moved forward with aggressive key interest rate hikes to seek to combat rising inflation. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. Economic data was better than expected, but there were some signals that a slowdown may be coming. U.S. equity markets continued lower in Q3 of 2022 as the Fed continued raising the key interest rate with two 0.75% increases in July and September. Gross Domestic Product data showed year-over-year growth to be negative for Q2 of 2022, marking the second consecutive quarter of negative growth. Domestic equities rebounded in October of 2022 as corporate earnings reported over the month were generally better than expected. Sector performance dispersion was again large as the energy sector continued to outpace the rest of the U.S. equity market.
Because of the changes in growth expectations and the rising rate environment, U.S. domestic investments trended downward during the 12 months ended October 31, 2022 and we believe the dividend yield factor4 was a positive driver of Fund performance as higher yielding investments outperformed lower yielding and non-dividend paying investments. In addition, we believe that the changes experienced in the macroeconomic environment as well as the increase in interest rates were conducive to high quality factor5 companies, resulting in the high-quality factor exposure augmenting Fund performance over the 12 months. Overall, the positive performance derived
from the dividend and quality factor exposures along with the low beta factor exposures of the Underlying Index were the primary sources of the Underlying Index’s outperformance against the Russell 1000® Index6 by 9.29%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -44 basis points (“bps”)7, which is reflective of the management fee (-37 bps), stock selection/futures (-10 bps), securities lending (+3 bps), performance calculation differences between the Underlying Index and the Fund (-1 bp), and compounding of tracking error over time (+1 bps).
3 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
4 |
Dividend yield factor is a factor that seeks to identify companies that realize a dividend yield above the Parent Index. |
5 |
The quality factor is a factor that seeks to identify companies that exhibit stable returns relative to the market. |
6 |
The Russell 1000® Index refers to a stock market index that represents the 1000 top companies in the United States. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
38 | FLEXSHARES ANNUAL REPORT |
FlexShares® Quality | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Dividend Dynamic Index Fund Ticker: QDYN
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 12/14/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Quality Dividend Dynamic Index Fund (Based on Net Asset Value) |
-9.23 | % | 10.00 | % | 8.86 | % | 11.52 | % | ||||||||
FlexShares Quality Dividend Dynamic Index Fund (Based on Market Price) |
-9.20 | % | 10.02 | % | 8.89 | % | 11.52 | % | ||||||||
Russell 1000® Index |
-16.38 | % | 9.98 | % | 10.20 | % | 12.74 | % | ||||||||
Northern Trust Quality Dividend Dynamic IndexSM |
-8.87 | % | 10.39 | % | 9.20 | % | 11.90 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.38% and the net expense ratio is 0.37%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally, before fees and expenses, to the price and yield performance of the Northern Trust Quality Dividend Dynamic IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust 1250 Index (the “Parent Index”)1. In addition, the Underlying Index is designed to select companies from the Parent Index that have enhanced risk return characteristics and that in the aggregate have the potential to generate income in excess of the income generated by securities in the Parent Index with a beta2 that is higher in relation to that of the Parent Index. As of October 31, 2022, there were 124 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by
1 |
Northern Trust 1250 Index is a float-adjusted market-capitalization weighted index comprised of U.S. domiciled large- and mid-capitalization companies. |
2 |
A statistical measure of the volatility, or sensitivity, of rates of return on a portfolio or security compared to a market index and time period. The beta for an ETF measures the expected change in return of the ETF relative to the return of a designated index. By definition, the beta of the Standard & Poor’s (“S&P”) 500 Index is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the S&P 500 Index in rising markets and 10% worse in falling markets. |
FLEXSHARES ANNUAL REPORT | 39 |
FlexShares® Quality | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Dividend Dynamic Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate3 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. Q1 of 2022 also saw a wide variance in sector performance as energy companies had outsized positive performance while the technology and communication services sectors were the worst performers. The selloff of U.S. equities accelerated in Q2 of 2022 as the Fed moved forward with aggressive key interest rate hikes to seek to combat rising inflation. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. Economic data was better than expected, but there were some signals that a slowdown may be coming. U.S. equity markets continued lower in Q3 of 2022 as the Fed continued raising the key interest rate with two 0.75% increases in July and September. Gross Domestic Product data showed year-over-year growth to be negative for Q2 of 2022, marking the second consecutive quarter of negative growth. Domestic equities rebounded in October of 2022 as corporate earnings reported over the month were generally better than expected. Sector performance dispersion was again large as the energy sector continued to outpace the rest of the U.S. equity market.
Because of the changes in growth expectations and the rising rate environment, U.S. domestic investments trended downward during the 12 months ended October 31, 2022 and we believe the dividend yield factor4 was a positive driver of Fund performance as higher yielding investments outperformed lower yielding and non-dividend paying investments. In addition, we believe that the changes experienced in the macroeconomic environment as well as the increase in interest rates were conducive to high quality factor5 companies, resulting in the high-quality factor exposure augmenting Fund performance over the 12 months. Because U.S. equities moved lower over the
12 months, we believe that the high beta exposure detracted from Fund performance. Overall, the positive performance derived from the yield and quality factor exposures of the Underlying Index were enough to offset the negative performance of its high beta exposure leading to the Underlying Index’s outperformance against the Russell 1000® Index6 by 7.51%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -36 basis points (“bps”)7, which is reflective of the management fee (-37 bps), stock selection/futures (-3 bps), securities lending (+3 bps) and compounding of tracking error over time (+1 bp).
3 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
4 |
Dividend yield factor is a factor that seeks to identify companies that realize a dividend yield above the Parent Index. |
5 |
The quality factor is a factor that seeks to identify companies that exhibit stable returns relative to the market. |
6 |
The Russell 1000 Index refers to a stock market index that represents the 1000 top companies in the United States. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
40 | FLEXSHARES ANNUAL REPORT |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Index Fund Ticker: IQDF
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 4/12/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares International Quality Dividend Index Fund (Based on Net Asset Value) |
-24.11 | % | -2.92 | % | -2.35 | % | 0.98 | % | ||||||||
FlexShares International Quality Dividend Index Fund (Based on Market Price) |
-24.52 | % | -2.98 | % | -2.44 | % | 0.96 | % | ||||||||
MSCI AC World ex USA Index |
-24.73 | % | -1.68 | % | -0.60 | % | 2.39 | % | ||||||||
Northern Trust International Quality Dividend IndexSM |
-24.06 | % | -2.66 | % | -2.20 | % | 1.30 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.48% and the net expense ratio is 0.47%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally, before fees and expenses, to the price and yield performance of the Northern Trust International Quality Dividend IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust International Large Cap Index (the “Parent Index”)1. In addition, the Underlying Index is designed to select companies from the Parent Index that have enhanced risk return characteristics and that in the aggregate have the potential to generate income in excess of the income generated by securities in the Parent Index with a beta2 that is similar to that of the Parent Index. As of October 31, 2022, there were 202 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on international equities generally traded lower. Over the course of the 12-month period the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising USD. Through Q4 of 2021, international equities
1 |
Northern Trust International Large Cap Index is a float-adjusted market-capitalization weighted index comprised of non-U.S. domiciled large- and mid-capitalization companies. |
2 |
A statistical measure of the volatility, or sensitivity, of rates of return on a portfolio or security compared to a market index and time period. The beta for an ETF measures the expected change in return of the ETF relative to the return of a designated index. By definition, the beta of the Standard & Poor’s (“S&P”) 500 Index is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the S&P 500 Index in rising markets and 10% worse in falling markets. |
FLEXSHARES ANNUAL REPORT | 41 |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
traded lower as the rapid spread of the Omicron variant of Covid-19 stoked fears that a new round of lockdowns in China would hinder growth in the region. International equity markets continued to decline in Q1 of 2022 as Russia launched a full scale invasion into Ukraine and the U.S. and its European allies responded with sanctions. As part of these sanctions, Russian equity securities were removed from major international market indices in March. The selloff in international equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. As global central banks struggled to keep pace with the aggressive key interest rate3 hikes by the U.S. Federal Reserve, the increasing interest rate differential caused the USD to strengthen versus many global currencies. International equities generally traded higher in October of 2022 as corporate earnings showed resilience and investors interpreted statements by the European Central Bank regarding the likelihood of a recession as a potential reprieve to further key interest rate hikes in the near future.
Because of the changes in growth expectations and the rising rate environment, international investments trended downward during the 12 months ended October 31, 2022 and we believe the dividend yield factor4 was a positive driver of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments. In addition, we believe that the changes experienced in the macroeconomic environment as well as the increase in interest rates were conducive to high quality factor5 companies, resulting in the high-quality factor exposure augmenting Fund performance over the 12 months. Overall, the positive performance derived from the dividend and quality factor exposures of the Underlying Index were the primary sources of the Underlying Index’s outperformance against the MSCI ACWI ex USA Index6 by 0.67%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -5 basis points (“bps”)7, which is reflective of the Fund’s management fee (-47 bps), stock selection/futures
(+32 bps), securities lending (+5 bps), performance calculation differences between the Underlying Index and the Fund (+3 bps), and compounding of tracking error over time (+2 bps).
3 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
4 |
Dividend yield factor is a factor that seeks to identify companies that realize a dividend yield above the Parent Index. |
5 |
The quality factor is a factor that seeks to identify companies that exhibit stable returns relative to the market. |
6 |
The Morgan Stanley Capital International All Country World Index Ex-U.S. is a market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI) and is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
42 | FLEXSHARES ANNUAL REPORT |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Defensive Index Fund Ticker: IQDE
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 4/12/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares International Quality Dividend Defensive Index Fund (Based on Net Asset Value) |
-22.06 | % | -2.89 | % | -2.37 | % | 0.52 | % | ||||||||
FlexShares International Quality Dividend Defensive Index Fund (Based on Market Price) |
-22.29 | % | -2.98 | % | -2.53 | % | 0.48 | % | ||||||||
MSCI AC World ex USA Index |
-24.73 | % | -1.68 | % | -0.60 | % | 2.39 | % | ||||||||
Northern Trust International Quality Dividend Defensive IndexSM |
-21.86 | % | -2.57 | % | -2.13 | % | 0.98 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.48% and the net expense ratio is 0.47%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally, before fees and expenses, to the price and yield performance of the Northern Trust International Quality Dividend Defensive IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust International Large Cap Index (the “Parent Index”)1. In addition, the Underlying Index is designed to select companies from the Parent Index that have enhanced risk return characteristics and that in the aggregate have the potential to generate income in excess of the income generated by securities in the Parent Index with a beta2 that is less than that of the Parent Index. As of October 31, 2022, there were 210 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on international equities generally traded lower. Over the course of the 12-month period the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising dollar. Through Q4 of 2021, international equities
1 |
Northern Trust International Large Cap Index is a float-adjusted market-capitalization weighted index comprised of non-U.S. domiciled large- and mid-capitalization companies. |
2 |
A statistical measure of the volatility, or sensitivity, of rates of return on a portfolio or security compared to a market index and time period. The beta for an ETF measures the expected change in return of the ETF relative to the return of a designated index. By definition, the beta of the Standard & Poor’s (“S&P”) 500 Index is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the S&P 500 Index in rising markets and 10% worse in falling markets. |
FLEXSHARES ANNUAL REPORT | 43 |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Defensive Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
traded lower as the rapid spread of the Omicron variant of Covid-19 stoked fears that a new round of lockdowns in China would hinder growth in the region. International equity markets continued to decline in Q1 of 2022 as Russia launched a full scale invasion into Ukraine and the U.S. and its European allies responded with sanctions. As part of these sanctions, Russian equity securities were removed from major international market indices in March. The selloff in international equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. As global central banks struggled to keep pace with the aggressive key interest rate3 hikes by the U.S. Federal Reserve, the increasing interest rate differential caused the USD to strengthen versus many global currencies. International equities generally traded higher in October of 2022 as corporate earnings showed resilience and investors interpreted statements by the European Central Bank regarding the likelihood of a recession as a potential reprieve to further key interest rate hikes in the near future.
Because of the changes in growth expectations and the rising rate environment, international investments trended downward during the 12 months ended October 31, 2022 and we believe the dividend yield factor4 was a positive driver of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments, as was the low beta exposure. In addition, we believe that the changes experienced in the macroeconomic environment as well as the increase in interest rates were conducive to high quality factor5 companies, resulting in the high-quality factor exposure augmenting Fund performance over the 12 months. Overall, the positive performance derived from the dividend, quality and low beta factor exposures of the Underlying Index were the primary sources of the Underlying Index’s outperformance against the MSCI ACWI ex USA Index6 by 2.87%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -20 basis points (“bps”)7, which is reflective of the Fund’s management fee (-47 bps), stock selection/futures (+8 bps), securities lending (+6 bps),
performance calculation differences between the Underlying Index and the Fund (+1 bps), India Cap Gain Tax (+7 bps) and compounding of tracking error over time (+5 bps).
3 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
4 |
Dividend yield factor is a factor that seeks to identify companies that realize a dividend yield above the Parent Index. |
5 |
The quality factor is a factor that seeks to identify companies that exhibit stable returns relative to the market. |
6 |
The Morgan Stanley Capital International All Country World Index Ex-U.S. is a market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI) and is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
44 | FLEXSHARES ANNUAL REPORT |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Dynamic Index Fund Ticker: IQDY
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 4/12/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares International Quality Dividend Dynamic Index Fund (Based on Net Asset Value) |
-25.48 | % | -1.03 | % | -0.88 | % | 2.46 | % | ||||||||
FlexShares International Quality Dividend Dynamic Index Fund (Based on Market Price) |
-26.15 | % | -1.23 | % | -1.01 | % | 2.43 | % | ||||||||
MSCI AC World ex USA Index |
-24.73 | % | -1.68 | % | -0.60 | % | 2.39 | % | ||||||||
Northern Trust International Quality Dividend Dynamic IndexSM |
-25.46 | % | -0.73 | % | -0.65 | % | 2.85 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.48% and the net expense ratio is 0.47%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally, before fees and expenses, to the price and yield performance of the Northern Trust International Quality Dividend Dynamic IndexSM (the “Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust International Large Cap Index (the “Parent Index”)1. In addition, the Underlying Index is designed to select companies from the Parent Index that have enhanced risk return characteristics and that in the aggregate have the potential to generate income in excess of the income generated by securities in the Parent Index with a beta2 that is higher than that of the Parent Index. As of October 31, 2022, there were 204 issues in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on international equities generally traded lower. Over the course of the 12-month period the U.S. dollar (USD) rose significantly and negatively impacted U.S. investors as returns in international currencies generally were hurt by the rising dollar. Through Q4 of 2021, international equities traded lower as the rapid spread of the Omicron variant of Covid-19 stoked fears that a new round of
1 |
Northern Trust International Large Cap Index is a float-adjusted market-capitalization weighted index comprised of non-U.S. domiciled large- and mid-capitalization companies. |
2 |
A statistical measure of the volatility, or sensitivity, of rates of return on a portfolio or security compared to a market index and time period. The beta for an ETF measures the expected change in return of the ETF relative to the return of a designated index. By definition, the beta of the Standard & Poor’s (“S&P”) 500 Index is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the S&P 500 Index in rising markets and 10% worse in falling markets. |
FLEXSHARES ANNUAL REPORT | 45 |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Dynamic Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
lockdowns in China would hinder growth in the region. International equity markets continued to decline in Q1 of 2022 as Russia launched a full scale invasion into Ukraine and the U.S. and its European allies responded with sanctions. As part of these sanctions, Russian equity securities were removed from major international market indices in March. The selloff in international equities accelerated in Q2 and Q3 of 2022 as the continued war in Ukraine, rising inflation, energy shortages and tightening monetary policy increased the risk of a global recession. As global central banks struggled to keep pace with the aggressive key interest rate3 hikes by the U.S. Federal Reserve, the increasing interest rate differential caused the USD to strengthen versus many global currencies. International equities generally traded higher in October of 2022 as corporate earnings showed resilience and investors interpreted statements by the European Central Bank regarding the likelihood of a recession as a potential reprieve to further key interest rate hikes in the near future.
Because of the changes in growth expectations and the rising rate environment, international investments trended downward during the 12 months ended October 31, 2022 and we believe the dividend yield factor4 was a positive driver of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments. In addition, we believe that the changes experienced in the macroeconomic environment as well as the increase in interest rates were conducive to high quality factor5 companies, resulting in the high-quality factor exposure augmenting Fund performance over the 12 months. Because international equities moved lower over the 12 months we believe that the high beta exposure detracted from Fund performance. Overall, the positive performance derived from the yield and quality factor exposures of the Underlying Index were not enough to offset the negative performance of its high beta exposure leading to the Underlying Index’s underperformance against the MSCI ACWI ex USA Index6 by 0.73%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return
for the 12-month period was -2 basis points (“bps”)7, which is reflective of the Fund’s management fee (-47 bps), stock selection/futures (+2 bps), securities lending (+8 bps), dividend tax differential (-1 bps), performance calculation differences between the Underlying Index and the Fund (+27 bps), India Cap Gain Tax (+7 bps) and compounding of tracking error over time (+2 bps).
3 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
4 |
Dividend yield factor is a factor that seeks to identify companies that realize a dividend yield above the Parent Index. |
5 |
The quality factor is a factor that seeks to identify companies that exhibit stable returns relative to the market. |
6 |
The Morgan Stanley Capital International All Country World Index Ex-U.S. is a market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI) and is designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
46 | FLEXSHARES ANNUAL REPORT |
FlexShares® iBoxx® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
3-Year Target Duration TIPS Index Fund Ticker: TDTT
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 5 Year | 10 Year | Fund Inception 9/19/2011 |
|||||||||||||
|
|
|||||||||||||||
FlexShares iBoxx 3-Year Target Duration TIPS |
||||||||||||||||
Index Fund (Based on Net Asset Value) |
-4.41 | %* | 2.55 | % | 1.26 | % | 1.38 | % | ||||||||
FlexShares iBoxx 3-Year Target Duration TIPS |
||||||||||||||||
Index Fund (Based on Market Price) |
-4.36 | % | 2.57 | % | 1.27 | % | 1.39 | % | ||||||||
iBoxx 3-Year Target Duration TIPS Index |
-4.19 | % | 2.73 | % | 1.44 | % | 1.55 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.19% and the net expense ratio is 0.18%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the iBoxx 3-Year Target Duration TIPS Index (the “Underlying Index”). The Underlying Index reflects the performance of a selection of inflation protected public obligations of the U.S. Treasury (“TIPS”), with a targeted average modified adjusted duration,1 as defined by IHS Markit as the index provider, of approximately three years. The Underlying Index includes publicly issued TIPS that have maturity dates of at least one year but not more than ten years from an index rebalancing date. As of October 31, 2022, there were 18 TIPS in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to achieve the Fund’s investment objective. NTI generally intends to replicate the constituent securities of the Underlying Index to manage the Fund but may use representative sampling in certain circumstances. “Representative sampling” means investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. When the Fund uses representative sampling, it may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate2 by 0.25% in March 2022
1 |
The duration calculated from the real modified duration of a TIPS security, adjusted for the market’s estimated beta for a TIPS security versus a nominal Treasury security due to the actual and expected changes in inflation. |
2 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
FLEXSHARES ANNUAL REPORT | 47 |
FlexShares® iBoxx® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
3-Year Target Duration TIPS Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields3 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities.
Intermediate-term4 credit spreads5 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS)6 to 63 basis points (“bps”)7 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year8.
TIPS inflation breakeven9 spreads in the 10-year maturity and shorter moved lower during the fiscal
year as investors weighed the impact of Fed actions and geopolitical events on future inflation potential. We believe that inflationary pressures from supply constraints and wage pressures were being offset by demand destruction, often from the impact of higher energy costs. Inflation expectations remain elevated versus recent history and against Fed policy levels. By the end of the fiscal year, TIPS breakeven spreads were: 1-year -50 bps, 5-year -27 bps, 10-year -8 bps and 30-year +23 bps.
The highest U.S. inflation rate in 30 years along with rising real interest rates during the fiscal year led to a negative total return performance for both the Fund and the Underlying Index. For the 12-month period, the NAV performance of the Fund outperformed the Bloomberg U.S. TIPS 1-10 Year Index10 by +278 bps due in part to lower overall duration in the 1–3-year section of the TIPS yield curve with rising real interest rates. Tracking difference between the Fund’s NAV and the Underlying Index for the 12-month period was -22 bps, reflective of the Fund’s management fee (-18 bps), duration and curve positioning (+4 bps), security selection (-2 bps) and other factors (-6 bps).
The iBoxx 3-Year Target Duration TIPS Index is the intellectual property (including registered trademarks) of Markit iBoxx and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by Markit iBoxx and its Licensors and neither of the Licensors shall have any liability with respect thereto.
3 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
4 |
Intermediate-term bonds typically mature between 3–10 years. |
5 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
6 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
8 |
Source: Bloomberg, in this analysis we are making a comparison between the difference of the Option Adjusted Spread of intermediate-term investment grade corporate bonds using data available on the Bloomberg US Intermediate Corporate Bond Index as of October 31, 2021 – October 31, 2022. |
9 |
Bloomberg. In this analysis we are making a comparison between the difference in the nominal yield and real yield rates of the 1-year, 5-year, 10-year and 30-year maturities using data available as of October 31, 2021 and October 31, 2022. |
10 |
The Bloomberg US Treasury Inflation Notes: 1-10 Year \Index (Series-L) measures the performance of the US Treasury Inflation Protected Securities (TIPS) market with less than 10 years to maturity. |
48 | FLEXSHARES ANNUAL REPORT |
FlexShares® iBoxx® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
5-Year Target Duration TIPS Index Fund Ticker: TDTF
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 5 Year | 10 Year | Fund Inception 9/19/2011 |
|||||||||||||
|
|
|||||||||||||||
FlexShares iBoxx 5-Year Target Duration TIPS |
||||||||||||||||
Index Fund (Based on Net Asset Value) |
-9.42 | %* | 2.32 | % | 1.16 | % | 1.60 | % | ||||||||
FlexShares iBoxx 5-Year Target Duration TIPS |
||||||||||||||||
Index Fund (Based on Market Price) |
-9.44 | % | 2.33 | % | 1.15 | % | 1.61 | % | ||||||||
iBoxx 5-Year Target Duration TIPS Index |
-9.25 | % | 2.52 | % | 1.33 | % | 1.76 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.19% and the net expense ratio is 0.18%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the iBoxx 5-Year Target Duration TIPS Index (the “Underlying Index”). The Underlying Index reflects the performance of a selection of inflation protected public obligations of the U.S. Treasury (“TIPS”), with a targeted average modified adjusted duration,1 as defined by IHS Markit as the index provider, of approximately five years. The Underlying Index includes publicly issued TIPS that have maturity dates of at least three years but not more than twenty years from an index rebalancing date. As of October 31, 2022, there were 26 TIPS in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to achieve the Fund’s investment objective. NTI generally intends to replicate the constituent securities of the Underlying Index to manage the Fund but may use representative sampling in certain circumstances. “Representative sampling” means investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. When the Fund uses representative sampling, it may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the
1 |
The duration calculated from the real modified duration of a TIPS security, adjusted for the market’s estimated beta for a TIPS security versus a nominal Treasury security due to the actual and expected changes in inflation. |
FLEXSHARES ANNUAL REPORT | 49 |
FlexShares® iBoxx® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
5-Year Target Duration TIPS Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
key interest rate2 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened— which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields3 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities. Intermediate-term4 credit spreads5 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS)6 to 63 basis points (“bps”)7 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year8.
TIPS inflation breakeven9 spreads in the 10-year maturity and shorter moved lower during the fiscal year as investors weighed the impact of Fed actions and geopolitical events on future inflation potential. We believe that inflationary pressures from supply constraints and wage pressures were being offset by demand destruction, often from the impact of higher energy costs. Inflation expectations remain elevated versus recent history and against Fed policy levels. By the end of the fiscal year, TIPS breakeven spreads were: 1-year -50 bps, 5-year -27 bps, 10-year -8 bps and 30-year +23 bps.
The highest U.S. inflation rate in 30 years along with rising real interest rates during the fiscal year led to positive total return performance for both the Fund and the Underlying Index. For the 12-month period, the NAV performance of the Fund underperformed the Bloomberg U.S. TIPS 1-10 Year Index10 by -30 bps due to higher duration positioning of the Underlying Index against the backdrop of falling real interest rates. Tracking difference between the Fund’s NAV and the Underlying Index for the 12-month period was -17 bps, reflective of the Fund’s management fee (-18 bps), duration and curve positioning (-4 bps), security selection (+3 bps), trading and pricing differences (+8 bps), and other factors (-6 bps).
The iBoxx 5-Year Target Duration TIPS Index is the intellectual property (including registered trademarks) of Markit iBoxx and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by Markit iBoxx and its Licensors and neither of the Licensors shall have any liability with respect thereto.
2 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
3 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
4 |
Intermediate-term bonds typically mature between 3–10 years. |
5 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
6 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
8 |
Source: Bloomberg, in this analysis we are making a comparison between the difference of the Option Adjusted Spread of intermediate-term investment grade corporate bonds using data available on the Bloomberg US Intermediate Corporate Bond Index as of October 31, 2021 – October 31, 2022. |
9 |
Bloomberg. In this analysis we are making a comparison between the difference in the nominal yield and real yield rates of the 1-year, 5-year, 10-year and 30-year maturities using data available as of October 31, 2021 and October 31, 2022. |
10 |
The Bloomberg US Treasury Inflation Notes: 1-10 Year \Index (Series-L) measures the performance of the US Treasury Inflation Protected Securities (TIPS) market with less than 10 years to maturity. |
50 | FLEXSHARES ANNUAL REPORT |
FlexShares® Disciplined | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Duration MBS Index Fund Ticker: MBSD
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 9/3/2014 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Disciplined Duration MBS Index Fund (Based on Net Asset Value) |
-12.16 | % | -2.69 | % | -0.55 | % | 0.27 | % | ||||||||
FlexShares Disciplined Duration MBS Index Fund (Based on Market Price) |
-12.40 | % | -2.72 | % | -0.55 | % | 0.26 | % | ||||||||
ICE BofA Merrill Lynch® Constrained Duration US Mortgage Backed Securities IndexSM |
-11.57 | % | -2.23 | % | -0.01 | % | 0.75 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.21% and the net expense ratio is 0.20%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE BofA® Constrained Duration US Mortgage Backed Securities Index (the “Underlying Index”). The Underlying Index reflects the performance of a selection of investment-grade US agency residential mortgage-backed pass-through securities (“MBS”). Pursuant to the Underlying Index’s methodology, index constituents are adjusted to achieve an effective duration1 that is generally between 3.25 and 4.25 years. As of October 31, 2022, there were 129 securities in the Underlying Index. Northern Trust Investments, Inc. (“NTI”) uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate2 by 0.25% in March 2022
FLEXSHARES ANNUAL REPORT | 51 |
1 |
Effective duration provides a measure of a fund’s interest-rate sensitivity and the longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. Duration also gives an indication of how a fund’s NAV will change as interest rates change. A fund with a five-year duration would be expected to lose 5% of its NAV if interest rates rose by 1 percentage point or gain 5%, if interest rates fell by 1 percentage point. Morningstar surveys fund companies for this information. |
2 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
FlexShares® Disciplined | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Duration MBS Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields3 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities.
Intermediate-term4 credit spreads5 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS)6 to 63 basis points (“bps”)7 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year8.
Rising interest rates eventually drove down housing sales and mortgage applications as average 30-year mortgage rates (Freddie Mac Index) rose dramatically from 3.22% to 7.08% during the fiscal year9. Existing home sales saw a 32% decrease10 while new housing starts saw an decrease of over 9% for the fiscal year.11
Highest inflation in 30 years along with falling real interest rates during the fiscal year led to positive total return performance for both the Fund and the Underlying Index. For the 12-month period, the NAV performance of the Fund outperformed the Bloomberg U.S. Mortgage Backed Securities Index12 by +30 bps due to the Underlying Index’s exposure to a selection of higher coupon13, more seasoned MBS securities which outperformed newer MBS due in part to less principal prepayment risk. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -101 bps, reflective of the Fund’s management fee (-20 bps), trading costs and fees (-8 bps), pricing differences (-83 bps), yield curve positioning (-21 bps), sector allocation (-5 bps), security selection (+37 bps), and other factors (-1 bps).
The ICE BofAML Constrained Duration US Mortgage Backed Securities Index is the intellectual property (including registered trademarks) of ICE BofAML and/or its licensors (“Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by ICE BofAML and its Licensors and neither of the Licensors shall have any liability with respect thereto.
3 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
4 |
Intermediate-term bonds typically mature between 3–10 years. |
5 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
6 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
8 |
Source: Bloomberg, in this analysis we are making a comparison between the difference of the Option Adjusted Spread of intermediate-term investment grade corporate bonds using data available on the Bloomberg US Intermediate Corporate Bond Index as of October 31, 2021 – October 31, 2022. |
9 |
Source: Bloomberg. Federal Home Loan Mortgage Corp. Primary Mortgage Market Survey. October 31, 2021 through November 1, 2022. |
10 |
Source: Bloomberg. National Association of Realtors, US Existing Homes Sales, September 30, 2021 through September 30, 2022. |
11 |
Source: Bloomberg. U.S. Census Bureau, Us New Privately Owned Housing Unites Starts, October 31, 2021 through October 31, 2022. |
12 |
The Bloomberg US Mortgage Backed Securities Index tracks fixed-rate agency mortgage backed passthrough securities guaranteed by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). |
13 |
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. |
52 | FLEXSHARES ANNUAL REPORT |
FlexShares® Credit-Scored | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Corporate Bond Index Fund Ticker: SKOR
CUMULATIVE PERFORMANCE
Through October 31, 2022
* |
The hybrid index performance information reflects the performance of the Northern Trust Credit-Scored US Corporate Bond IndexSM (Previous Index) through April 30, 2020 and the Northern Trust US Corporate Bond Quality Value IndexSM thereafter. The Previous Index terminated as of May 1, 2020. |
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 11/12/2014 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund (Based on Net Asset Value) |
-12.91 | % | -2.03 | % | 0.56 | % | 1.50 | % | ||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund (Based on Market Price) |
-12.79 | % | -1.99 | % | 0.53 | % | 1.51 | % | ||||||||
Bloomberg Intermediate U.S. Corporate Index |
-12.18 | % | -2.08 | % | 0.52 | % | 1.49 | % | ||||||||
Northern Trust US Corporate Bond Quality Value IndexSM |
-12.37 | % | -1.43 | %* | 1.09 | %* | 1.95 | %* |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.23% and the net expense ratio is 0.22%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust US Corporate Bond Quality Value IndexSM (the “Underlying Index”). The Underlying Index reflects the performance of a broad universe of intermediate maturity, US-dollar denominated investment grade corporate bonds that can potentially deliver a higher total return than the overall investment grade corporate bond market, as represented by the Northern Trust US Investment-Grade Corporate Bond IndexSM (the “Parent Index”).1 The Underlying Index begins with the Parent Index and then follows a rules-based methodology to select and weight securities, subject to certain constraints, to optimize the Underlying Index’s exposure to a combined proprietary, value score2 and a proprietary quality score3, as determined by Northern Trust Investments, Inc. (“NTI”), in its capacity as index provider. Utilizing the value and quality scores, the Underlying Index methodology seeks to identify bonds that are trading at market prices that are lower relative to levels implied by their fundamentals, thus creating a potential opportunity for capital appreciation and higher income compared to the broader investment grade corporate bond market. As of October 31, 2022, there were 2,357 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment
1 |
The Northern Trust US Investment Grade Corporate Bond IndexSM is a market-capitalization weighted index comprised of U.S. dollar-denominated investment grade corporate bonds. |
2 |
The value score is a quantitative measure of the relative attractiveness of each security’s valuation compared to market price or relative valuation versus other similar securities, and is computed based on market and fundamental measures, including issuer default risk. |
3 |
The quality score is a quantitative ranking based on: (a) an assessment of management efficiency (e.g., corporate finance activities); (b) profitability (reliability and sustainability of financial performance); and (c) financial solvency (e.g., debt servicing capacity). |
FLEXSHARES ANNUAL REPORT | 53 |
FlexShares® Credit-Scored | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Corporate Bond Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate4 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields5 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities. Intermediate-term6 credit spreads7 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS)8 to 63 basis points (“bps”)9 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year.10
During the fiscal year, the Fund’s NAV underperformed the Bloomberg U.S. Intermediate Corporate Bond Index11 by -5 bps due in part to the Fund’s management fee. During the fiscal year, relative overweight allocations to fixed income securities in financials, real estate investment trusts (“REIT”) and utilities sectors along with security selection in the banking and utility sectors added to Fund performance while a relative underweighting to the communications sector and security selection in the industrials sector detracted from performance. The tracking difference between the Fund’s NAV and the Underlying Index’s return for the fiscal year was -64 bps, which is reflective of the Fund’s management fee (-22 bps), trading costs and fees (-14 bps), pricing differences (+1 bps), sector and security selection (-31 bps), yield curve positioning (+1 bps), and other factors (+1 bp).
4 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
5 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
6 |
Intermediate-term bonds typically mature between 3–10 years. |
7 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
8 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
9 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
10 |
Source: Bloomberg, in this analysis we are making a comparison between the difference of the Option Adjusted Spread of intermediate-term investment grade corporate bonds using data available on the Bloomberg US Intermediate Corporate Bond Index as of October 31, 2021 – October 31, 2022. |
11 |
Bloomberg US Intermediate Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market that have between 1 and up to, but not including, 10 years to maturity. |
54 | FLEXSHARES ANNUAL REPORT |
FlexShares® Credit-Scored | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Long Corporate Bond Index Fund Ticker: LKOR
CUMULATIVE PERFORMANCE
Through October 31, 2022
* |
The hybrid index performance information reflects the performance of the Northern Trust Credit-Scored US Long Corporate Bond IndexSM (Previous Index) through April 30, 2020 and the Northern Trust US Long Corporate Bond Quality Value IndexSM thereafter. The Previous Index terminated as of May 1, 2020. |
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 9/23/2015 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Credit-Scored US Long Corp Bond Index Fund (Based on Net Asset Value) |
-31.58 | % | -7.41 | % | -1.56 | % | 1.29 | % | ||||||||
FlexShares Credit-Scored US Long Corp Bond Index Fund (Based on Market Price) |
-31.22 | % | -7.16 | % | -1.54 | % | 1.36 | % | ||||||||
Bloomberg Long U.S. Corporate Index |
-31.04 | % | -7.83 | % | -1.75 | % | 1.30 | % | ||||||||
Northern Trust US Long Corporate Bond Quality Value IndexSM |
-31.16 | % | -6.59 | %* | --0.84 | %* | 1.95 | %* |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.23% and the net expense ratio is 0.22%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust US Long Corporate Bond Quality Value IndexSM (the “Underlying Index”). The Underlying Index reflects the performance of a broad universe of longer term maturity, US-dollar denominated investment grade corporate bonds that can potentially deliver a higher total return than the overall investment grade corporate bond market, as represented by the Northern Trust US Long Corporate Bond IndexSM (the “Parent Index”).1 The Underlying Index begins with the Parent Index and then follows a rules-based methodology to select and weight securities, subject to certain constraints, to optimize the Underlying Index’s exposure to a combined proprietary, value score2 and a proprietary quality score3, as determined by Northern Trust Investments, Inc. (“NTI”), in its capacity as index provider. Utilizing the value and quality scores, the Underlying Index methodology seeks to identify bonds that are trading at market prices that are lower relative to levels implied by their fundamentals, thus creating a potential opportunity for capital appreciation and higher income compared to the broader investment grade corporate bond market. As of October 31, 2022, there were 1,273 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that
1 |
The Northern Trust US Long Corporate Bond IndexSM is a market capitalization weighted index comprised of long-term, U.S. dollar- denominated investment grade corporate bonds. |
2 |
The value score is a quantitative measure of the relative attractiveness of each security’s valuation compared to market price or relative valuation versus other similar securities, and is computed based on market and fundamental measures, including issuer default risk. |
3 |
The quality score is a quantitative ranking based on: (a) an assessment of management efficiency (e.g., corporate finance activities); (b) profitability (reliability and sustainability of financial performance); and (c) financial solvency (e.g., debt servicing capacity). |
FLEXSHARES ANNUAL REPORT | 55 |
FlexShares® Credit-Scored | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Long Corporate Bond Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate4 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields5 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities. Intermediate-term6 credit spreads7 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS)8 to 63 basis points (“bps”)9 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year.10
During the fiscal year, the Fund’s NAV underperformed the Bloomberg U.S. Long Corporate Bond Index11 by +59 bps. During the fiscal year, positive performance from relative sector overweight allocations to fixed income securities in energy, financials and materials sectors added to Fund performance while a relative underweighting to the communications, consumer staples and industrial sectors detracted from performance. The tracking difference between the Fund’s NAV and the combined Underlying Indexes return for the period was -72 bps, which is reflective of the Fund’s management fee (-22 bps), trading costs and fees (-36 bps), pricing differences (-5 bps), sector and security selection (-17 bps), yield curve positioning (+9 bps), and other factors (-1 bp).
4 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
5 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
6 |
Intermediate-term bonds typically mature between 3–10 years. |
7 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
8 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
9 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
10 |
Source: Bloomberg, in this analysis we are making a comparison between the difference of the Option Adjusted Spread of intermediate-term investment grade corporate bonds using data available on the Bloomberg US Intermediate Corporate Bond Index as of October 31, 2021 – October 31, 2022. |
11 |
Bloomberg US Long Corporate Bond Index measures the performance of investment grade U.S. corporate bond market with bonds that have a maturity of more than ten years. |
56 | FLEXSHARES ANNUAL REPORT |
FlexShares® High Yield | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Value-Scored Bond Index Fund Ticker: HYGV
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | Fund Inception 7/17/2018 |
||||||||||
|
|
|||||||||||
FlexShares High Yield Value-Scored US Bond Index Fund (Based on Net Asset Value) |
-13.06 | % | 0.53 | % | 2.10 | % | ||||||
FlexShares High Yield Value-Scored US Bond Index Fund (Based on Market Price) |
-12.98 | % | 0.52 | % | 2.13 | % | ||||||
ICE BofA® US High Yield Index |
-11.45 | % | 0.18 | % | 2.06 | % | ||||||
Northern Trust High Yield Value-Scored US Corporate Bond IndexSM |
-11.93 | % | 2.10 | % | 3.42 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.38% and the net expense ratio is 0.37%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust High Yield Value-Scored US Corporate Bond IndexSM (the “Underlying Index”). The Underlying Index reflects the performance of a broad universe of US-dollar denominated high yield corporate bonds that seeks a higher total return than the overall high yield corporate bond market, as represented by the Northern Trust High Yield US Corporate Bond IndexSM (the “Parent Index”).1 The securities included in the Underlying Index are a subset of the securities included in the Parent Index. The Underlying Index begins with the Parent Index and then follows a rules-based methodology to select and weight securities, subject to certain constraints, to optimize exposure to a proprietary value score2, as determined by Northern Trust Investments, Inc. (“NTI”), acting in its capacity as index provider. Utilizing the value score, the Underlying Index seeks to select bonds that are trading at market prices which are lower relative to levels implied by their fundamentals, thus creating an opportunity for potential capital appreciation and higher income to the broader market reflected by the Parent Index. As of October 31, 2022, there were 989 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
1 |
The Northern Trust High Yield US Corporate Bond IndexSM is a market capitalization weighted index comprised of U.S. dollar- denominated high yield corporate bonds. |
2 |
The value score is a quantitative measure of the relative attractiveness of each security’s valuation compared to market price or relative valuation versus other similar securities, and is computed based on market and fundamental measures, including issuer default risk. |
FLEXSHARES ANNUAL REPORT | 57 |
FlexShares® High Yield | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Value-Scored Bond Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate3 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields4 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term,
those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities.
Intermediate-term5 credit spreads6 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS) to 63 basis points (“bps”)7 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year.
High Yield credit spreads from the beginning of the fiscal year raised investors’ uncertainty for corporate revenues and earnings. High Yield8 option adjusted spreads (“OAS”)9 of the ICE BofA US High Yield Index10 declined from 532 bps to 302 bps in early July 2022, then widened to 321 bps at the end of August 2022 and ended the fiscal year at 315 bps.11 We believe the decline in credit spreads was linked to investors continuing search for income, robust economic growth supported by fiscal and monetary policy and lower credit defaults. The Moody’s Investor Services’ annual high yield default rate measure fell from 8.3% in October 2021 to 2.6% as of October 2022.12 Our analysis, based on increasing issuance of new supply, suggests that High Yield investments have benefitted from the post-COVID recovery and access to capital markets as the year-to-date through October 2022 total gross new issuance of U.S. high yield bonds totaled $462 billion, versus the then record of $450 billion issued in 2020 and the $399 billion issued in 2013.13
3 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
4 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
5 |
Intermediate-term bonds typically mature between 3–10 years. |
6 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
8 |
High yield are fixed income securities that are rated in the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. |
9 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
10 |
The ICE BofA US High Yield Index is market capitalization weighted and is designed to measure the performance of U.S. dollar denominated below investment grade (commonly referred to as “junk”) corporate debt publicly issued in the U.S. domestic market. |
11 |
Source: Bloomberg. In this analysis we are making a comparison between the difference of the Option Adjusted Spread of long-term High Yield corporate bonds using data available on the ICE BofA US High Yield Index as of October 31, 2021 – October 31, 2022. |
12 |
Source: Moodys Investor Services, High Yield Default Recovery Analytics, October 31, 2022. |
13 |
Source: JP Morgan, 2022 High Yield Bond and Leverage Loan Supply Outlook, October 31, 2022. |
58 | FLEXSHARES ANNUAL REPORT |
FlexShares® High Yield | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Value-Scored Bond Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
During the fiscal year, the Fund’s NAV underperformed the ICE BofA US High Yield Index by -161 bps. During the fiscal year, positive performance from relative sector overweight allocations to fixed income securities in energy, financials and materials sectors added to Fund performance while a relative underweighting to the communications, consumer staples and industrial sectors detracted from performance. The tracking difference between the Fund’s NAV and the combined Underlying Indexes return for the period was -72 bps, which is reflective of the Fund’s management fee (-22 bps), trading costs and fees (-36 bps), pricing differences (-5 bps), sector and security selection (-17 bps), yield curve positioning (+9 bps), and other factors (-1 bp).
FLEXSHARES ANNUAL REPORT | 59 |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
High Yield Corporate Core Index Fund Ticker: FEHY
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | Fund Inception 9/20/2021 |
|||||||
|
|
|||||||
FlexShares ESG & Climate High Yield Corporate Core Index Fund (Based on Net Asset Value) |
-12.47 | % | -11.69 | % | ||||
FlexShares ESG & Climate High Yield Corporate Core Index Fund (Based on Market Price) |
-12.52 | % | -11.72 | % | ||||
ICE BofA® US High Yield Index |
-11.45 | % | -10.59 | % | ||||
Northern Trust ESG & Climate High Yield U.S. Corporate Core Index |
-11.65 | % | -10.85 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2022. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.24% and the net expense ratio is 0.23%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust ESG & Climate High Yield U.S. Corporate Core IndexSM (the “Underlying Index”). The Underlying Index seeks to reflect the performance of a selection of U.S.-dollar-denominated high-yield corporate bonds issued by companies that exhibit certain environmental, social and governance (“ESG”) characteristics, while also seeking to provide broad-market, core exposure to U.S.-dollar-denominated high-yield corporate bonds (sometimes referred to as “junk bonds”) of U.S. and non-U.S. issuers. The Underlying Index is designed to minimize tracking differences relative to the performance of the Northern Trust High Yield US Corporate Bond IndexSM (the “Parent Index”) while also seeking (a) an aggregate higher scoring of certain ESG characteristics, as measured by the Northern Trust ESG Vector Score (“ESG Vector Score”), and (b) reduction of aggregate climate-related risk, as measured by certain carbon-related risk metrics, each relative to the Parent Index. As of October 31, 2022, there were 1,119 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the
60 | FLEXSHARES ANNUAL REPORT |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
High Yield Corporate Core Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
key interest rate1 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields2 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities.
Intermediate-term3 credit spreads4 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS) to
63 basis points (“bps”)5 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year.
High Yield credit spreads from the beginning of the fiscal year raised investors’ uncertainty for corporate revenues and earnings. High Yield6 option adjusted spreads (“OAS”)7 of the ICE BofA US High Yield Index8 declined from 532 bps to 302 bps in early July 2022, then widened to 321 bps at the end of August 2022 and ended the fiscal year at 315 bps.9 We believe the decline in credit spreads was linked to investors continuing search for income, robust economic growth supported by fiscal and monetary policy and lower credit defaults. The Moody’s Investor Services’ annual high yield default rate measure fell from 8.3% in October 2021 to 2.6% as of October 2022.10 Our analysis, based on increasing issuance of new supply, suggests that High Yield investments have benefitted from the post-COVID recovery and access to capital markets as the year-to-date through October 2022 total gross new issuance of U.S. high yield bonds totaled $462 billion, versus the then record of $450 billion issued in 2020 and the $399 billion issued in 2013.11
During the fiscal year, the Fund’s NAV underperformed the ICE BofA US High Yield Index by -102 bps. During the fiscal year, negative relative performance from allocation and security selection in health care along with security selection in real estate and sector allocations in industrial and energy offset positive contributions from security selection in energy and communications sectors. The tracking difference between the Fund’s NAV and the Underlying Index’s return for the period was -82 bps, which is reflective of
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
2 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
3 |
Intermediate-term bonds typically mature between 3–10 years. |
4 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
6 |
High yield are fixed income securities that are rated in the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. |
7 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
8 |
The ICE BofA US High Yield Index is market capitalization weighted and is designed to measure the performance of U.S. dollar denominated below investment grade (commonly referred to as “junk”) corporate debt publicly issued in the U.S. domestic market. |
9 |
Source: Bloomberg. In this analysis we are making a comparison between the difference of the Option Adjusted Spread of long-term High Yield corporate bonds using data available on the ICE BofA US High Yield Index as of October 31, 2021 – October 31, 2022. |
10 |
Source: Moodys Investor Services, High Yield Default Recovery Analytics, October 31, 2022. |
11 |
Source: JP Morgan, 2022 High Yield Bond and Leverage Loan Supply Outlook, October 31, 2022. |
FLEXSHARES ANNUAL REPORT | 61 |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
High Yield Corporate Core Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
the Fund’s management fee (-23 bps), trading costs and fees (-3 bps), pricing differences (-30 bps), sector and security selection (-36 bps), yield curve positioning (+4 bps) and other factors (+6 bp).
62 | FLEXSHARES ANNUAL REPORT |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Investment Grade Corporate Core Index Fund Ticker: FEIG
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | Fund Inception 9/20/2021 |
|||||||
|
|
|||||||
FlexShares ESG & Climate Investment Grade Corporate Core Index Fund (Based on Net Asset Value) |
-19.73 | % | -18.90 | % | ||||
FlexShares ESG & Climate Investment Grade Corporate Core Index Fund (Based on Market Price) |
-19.60 | % | -18.77 | % | ||||
Bloomberg US Corporate Total Return Value Unhedged Index |
-19.57 | % | -18.70 | % | ||||
Northern Trust ESG & Climate Investment Grade U.S. Corporate Core Index |
-19.54 | % | -18.70 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2022. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.13% and the net expense ratio is 0.12%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust ESG & Climate Investment Grade U.S. Corporate Core IndexSM (the “Underlying Index”). The Underlying Index seeks to reflect the performance of a selection of U.S.-dollar-denominated corporate bonds issued by companies that exhibit certain environmental, social and governance (“ESG”) characteristics, while also seeking to provide broad-market, core exposure to U.S.-dollar-denominated investment grade corporate bonds of U.S. and non-U.S. issuers. The Underlying Index is designed to minimize tracking differences relative to the performance of the Northern Trust US Corporate Bond IndexSM (the “Parent Index”) while also seeking (a) an aggregate higher scoring of certain ESG characteristics, as measured by the Northern Trust ESG Vector Score (“ESG Vector Score”), and (b) reduction of aggregate climate-related risk, as measured by certain carbon-related risk metrics, each relative to the Parent Index. As of October 31, 2022, there were 3,474 issues in the Underlying Index. NTI uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. NTI uses a representative sampling strategy to manage the Fund. This means that the Fund invests in a representative sample of securities that collectively has an investment profile similar to the Underlying Index. The Fund may or may not hold all of the securities that are included in the Underlying Index.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the
FLEXSHARES ANNUAL REPORT | 63 |
FlexShares® ESG & Climate | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Investment Grade Corporate Core Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
key interest rate1 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields2 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities. Intermediate-term3 credit spreads4 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS)5 to 63 basis points (“bps”)6 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year.7
During the fiscal year, the Fund’s NAV underperformed the Bloomberg U.S. Corporate Bond Index8 by -16 bps. During the fiscal year, security selection in the technology sector detracted slightly from performance while security selection in consumers staples aided performance. The tracking difference between the Fund’s NAV and the Underlying Index’s return for the fiscal year was -19 bps, which is reflective of the Fund’s management fee (-12 bps), trading costs and fees (+4 bps), pricing differences (-10 bps), sector and security selection (+18 bps), yield curve positioning (-14 bps) and other factors (-5 bps).
1 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
2 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
3 |
Intermediate-term bonds typically mature between 3–10 years. |
4 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
5 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
6 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
7 |
Source: Bloomberg, in this analysis we are making a comparison between the difference of the Option Adjusted Spread of intermediate-term investment grade corporate bonds using data available on the Bloomberg US Intermediate Corporate Bond Index as of October 31, 2021 – October 31, 2022. |
8 |
Bloomberg US Long Corporate Bond Index measures the performance of investment grade U.S. corporate bond market with bonds that have a maturity of more than ten years. |
64 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Ready Access Variable Income Fund Ticker: RAVI
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 5 Year | 10 Year | Fund Inception 10/9/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Ready Access Variable Income Fund (Based on Net Asset Value) |
-0.94 | % | 1.31 | % | 1.10 | % | 1.09 | % | ||||||||
FlexShares Ready Access Variable Income Fund (Based on Market Price) |
-1.00 | % | 1.31 | % | 1.50 | % | 1.09 | % | ||||||||
Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index |
0.86 | % | 1.13 | % | 0.66 | % | 0.66 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.26% and the net expense ratio is 0.25%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks maximum current income consistent with the preservation of capital and liquidity. The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its total assets in a non-diversified portfolio of fixed-income instruments, including bonds, debt securities and other similar instruments issued by U.S. and non-U.S. public and private sector entities. Such issuers include, without limitation, U.S. and non-U.S. governments and their agencies, instrumentalities or sponsored enterprises, U.S. state and local governments and municipalities, and U.S. and non-U.S. private-sector entities, such as corporations and banks. The average effective duration1, of the Fund will vary based on The Northern Trust Company Investment Policy Committee’s forecast for interest rates and will normally not exceed one year. The dollar-weighted average portfolio maturity of the Fund is normally not expected to exceed two years.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the
1 |
Average effective duration provides a measure of a fund’s interest-rate sensitivity and the longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. Duration also gives an indication of how a fund’s NAV will change as interest rates change. A fund with a five- year duration would be expected to lose 5% of its NAV if interest rates rose by 1 percentage point, or gain 5%, if interest rates fell by 1 percentage point. Morningstar surveys fund companies for this information. |
FLEXSHARES ANNUAL REPORT | 65 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Ready Access Variable Income Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
key interest rate2 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields3 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities. Intermediate-term4 credit spreads5 trended lower into the fiscal year.
Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (OAS)6 to 63 basis points (“bps”)7 in comparison to comparable maturing
Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year.8
For the 12 months ended October 31, 2022, the fund underperformed the generic Treasury Bill index, as defined by the Bloomberg 1-3 Month U.S. Treasury Bill Index9, by -180 bps. The Fund’s exposure to corporate credit, asset-backed securities and longer duration all negatively impacted performance versus the benchmark index.
2 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
3 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
4 |
Intermediate-term bonds typically mature between 3–10 years. |
5 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
6 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
8 |
Source: Bloomberg, in this analysis we are making a comparison between the difference of the Option Adjusted Spread of intermediate-term investment grade corporate bonds using data available on the Bloomberg US Intermediate Corporate Bond Index as of October 31, 2021 – October 31, 2022. |
9 |
The Bloomberg 1-3 Month U.S. Treasury Bill Index is designed to measure the performance of public obligations of the U.S. Treasury that have a remaining maturity of greater than or equal to 1 month and less than 3 months. |
66 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Core Select Bond Fund Ticker: BNDC
CUMULATIVE PERFORMANCE
Through October 31, 2022
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2022
1 Year | 3 Year | 5 Year | Fund Inception 11/18/2016 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Core Select Bond Fund (Based on Net Asset Value) |
-16.27 | % | -3.61 | % | -0.60 | % | -0.03 | % | ||||||||
FlexShares Core Select Bond Fund (Based on Market Price) |
-16.33 | % | -3.66 | % | -0.66 | % | -0.03 | % | ||||||||
Bloomberg U.S. Aggregate Bond Index |
-15.68 | % | -3.77 | % | -0.54 | % | 0.09 | % |
All data as of 10/31/22. Total returns based on market price do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, these returns would be lower. Total returns based on market price and net asset value (“NAV”) assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively. NAV is calculated by dividing the total value of all the securities in the Fund’s portfolio plus cash, interest and receivables less any liabilities by the number of Fund shares outstanding. Market price is determined by the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market price returns may vary from NAV returns.
Performance quoted represents past performance and does not guarantee future results. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Unlike the index that the Fund seeks to track, the Fund’s total returns are reduced by operating expenses, such as transaction costs and management fees. An investor cannot invest directly in an index.
Performance reflects contractual reimbursements in effect until March 1, 2023. In the absence of such reimbursements, performance would be reduced. The gross expense ratio of the Fund is 0.56% and the net expense ratio is 0.35%. The gross and net expense ratios disclosed are as reported in the Fund’s prospectus, which may differ from the gross and net expense ratios presented in the Fund’s financial reports. Current performance may be higher or lower than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed or sold in the market.
FlexShares ETFs’ performance data current to the most recent month-end is available at www.flexshares.com.
PORTFOLIO ANALYSIS
The Fund seeks total return and preservation of capital. The Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in U.S. dollar-denominated investment-grade fixed-income securities either directly or indirectly through exchange-traded funds (“ETFs”) and other registered investment companies (together with ETFs, “Underlying Funds”). The Fund primarily invests in fixed-rate securities of varying maturities, including bonds, debt securities and other similar instruments issued by U.S. public and U.S and non-U.S. private sector entities. Such issuers include, without limitation, U.S. governments and their agencies, instrumentalities or sponsored enterprises, and U.S. and non-U.S. private-sector entities, such as corporations and banks. The Fund may invest in fixed income securities of any maturity.
The Fund seeks to provide attractive risk-adjusted performance by investing in a portfolio of fixed-income securities and Underlying Funds. The Fund generally adjusts its allocations to securities based on Northern Trust Investment Inc.’s (“NTI”) assessment of potential changes in interest rate levels, the shape of the yield curve1 and credit spread relationships, which is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. The Fund also seeks to balance the potential for return and risk while emphasizing liquidity and diversification across a spectrum of U.S. dollar-denominated investment-grade fixed income securities.
During the 12 months ending October 31, 2022, prices on domestic equities generally traded lower. Through Q4 of 2021 U.S. equity markets rose as economic data and strong corporate earnings suggested continued growth, allaying concerns over a spike in Covid cases due to the Omicron variant. U.S. equities declined in Q1 of 2022 as concerns over rising inflation were intensified by
1 |
A yield curve is constructed by plotting a session’s final yields for various maturities including 1-month, 3-month, 6-month, 1-year, 2-year, 3-year, 5-year, 7-year, 10-year, 20-year and 30-year maturities. |
FLEXSHARES ANNUAL REPORT | 67 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Core Select Bond Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Russia’s invasion of Ukraine and the impact subsequent sanctions from the U.S. and European countries had on commodity prices. In an attempt to combat inflation, the U.S. Federal Reserve (the “Fed”) raised the key interest rate2 by 0.25% in March 2022 and signaled more aggressive key interest rate hikes may be necessary. In Q1 of 2022 the Fed indeed moved to tighten monetary conditions. Our analysis suggests that by early in Q1 of 2022 investors anticipated the need for the Fed to address higher inflation and the U.S. yield curve steepened—which meant that short term interest rates fell faster than long term interest rates. Intermediate Treasury yields, defined as Treasury bonds equal to or less than 10 years to maturity, moved higher. This movement of yields eventually led to an inverting of the yield curve which happens when the 2-year maturing note yields more than the corresponding yield on a 10-year bond. The Fed increased the key interest rate 0.50% in May and 0.75% in June while signaling additional aggressive key interest rate hikes at future meetings were likely. as the Fed continued raising the key interest rate with two 0.75% increases in July and September.
Fed rate actions and U.S. inflation results had a major impact on real yields3 during the period which steadily increased with Fed key interest rate hikes. Short-term real yields increased the most as the key interest rate moved above 3.00% while intermediate and long-term, those bonds with greater than 15+ years to maturity, real yields also increased. We believe that investor expectations for rebounding corporate revenues and earnings along with investor pursuit of higher yields led to increased demand for U.S. corporate credit securities. Intermediate-term4 credit spreads5 trended lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average
Intermediate-term option adjusted spreads (OAS)6 to 63 basis points (“bps”)7 in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year.8
At the beginning of the fiscal year, the Fund, in comparison to the Bloomberg U.S. Aggregate Bond Index, was generally positioned with an underweight to U.S. Treasuries and mortgage backed securities and an overweight to corporate fixed income on our expectations for lower, but still positive, economic growth and corporate earnings. By the time the Fed commenced raising interest rates in Q1 of 2022, the corporate credit overweight had been reduced, inflation protected public obligations of the U.S. Treasury (“TIPS”) exposure was added for Treasuries and cash balances were maintained. When Fed Chair Powell indicated continued tightening of monetary policy, the corporate overweight had been again reduced and cash balances further increased. By fiscal year end, corporate credit positioning was neutral, Treasuries were still underweight and cash balances were near all-time highs since inception of the Fund. The overall increase in interest rates along with the widening of credit spreads lead to negative total returns for the fiscal year. The Underlying Index had a negative total return during the 12 months ended October 31, 2022, and underperformed the broader bond index, as defined by the Bloomberg U.S. Aggregate Bond Index9, by -59 bps.
2 |
The key interest rate is the interest rate charged to banks when they borrow funds from other banks or from the Federal Reserve, which is the central bank of the U.S. When banks lend money to each other, the key rate is known as the federal funds rate. |
3 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
4 |
Intermediate-term bonds typically mature between 3–10 years. |
5 |
Credit spread is the difference in yield between one debt security and another debt security with the same maturity but of lesser quality. |
6 |
The option-adjusted spread (OAS) is the measurement of the spread of a fixed-income security rate or portfolio and typically the Treasury securities yield (often referred to as the risk-free rate) and that spread is added to the fixed-income security for comparison purposes. |
7 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
8 |
Source: Bloomberg, in this analysis we are making a comparison between the difference of the Option Adjusted Spread of intermediate-term investment grade corporate bonds using data available on the Bloomberg US Intermediate Corporate Bond Index as of October 31, 2021 – October 31, 2022. |
9 |
The Bloomberg US Aggregate Bond Index, or the Agg, is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States. |
68 | FLEXSHARES ANNUAL REPORT |
FlexShares® Trust
Statements of Assets and Liabilities October 31, 2022
FlexShares® US Quality Low Volatility Index Fund |
FlexShares® Quality Low Volatility |
FlexShares® Quality Low Volatility |
FlexShares® Market Factor Tilt |
|||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost |
$ | 150,849,786 | $ | 66,583,161 | $ | 9,468,208 | $ | 931,864,979 | ||||||||
Affiliate securities, at cost |
— | — | — | 507,052 | ||||||||||||
Securities Lending Reinvestments, at cost |
1,156,911 | 481,336 | — | 203,821,768 | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
161,976,002 | 60,676,378 | 8,151,646 | 1,384,772,126 | ||||||||||||
Affiliate securities, at value |
— | — | — | 564,807 | ||||||||||||
Securities Lending Reinvestments, at value |
1,156,911 | 481,336 | — | 203,816,815 | ||||||||||||
Cash |
284,048 | 320,646 | 51,956 | 10,513,546 | ||||||||||||
Cash segregated at broker* |
5,315 | 128,915 | 13,409 | 908,884 | ||||||||||||
Foreign cash†† |
— | 355,064 | 18,459 | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
— | 16,928 | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
347,030 | 423,339 | 3,699 | 940,543 | ||||||||||||
Securities lending income |
1,588 | 313 | — | 55,141 | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
— | — | — | — | ||||||||||||
Securities sold |
— | 43 | — | 7,508,057 | ||||||||||||
Variation margin on futures contracts |
1,483 | — | — | 211,227 | ||||||||||||
|
|
|||||||||||||||
Total Assets |
163,772,377 | 62,402,962 | 8,239,169 | 1,609,291,146 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
— | 1,982 | — | — | ||||||||||||
Due to brokers |
11,030 | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
1,156,911 | 481,336 | — | 203,821,768 | ||||||||||||
Deferred compensation (Note 7) |
4,531 | 2,820 | 479 | 139,501 | ||||||||||||
Investment advisory fees (Note 4) |
28,724 | 16,314 | 2,797 | 282,841 | ||||||||||||
Trustee fees (Note 7) |
2,658 | 1,446 | 341 | 29,304 | ||||||||||||
Securities purchased |
— | — | — | — | ||||||||||||
Deferred non-US capital gains taxes |
— | — | 9,995 | — | ||||||||||||
Due to Authorized Participant |
— | — | — | 6,617 | ||||||||||||
Variation margin on futures contracts |
— | 47,316 | 7,665 | — | ||||||||||||
Capital shares redeemed |
— | — | — | 7,597,613 | ||||||||||||
Other |
— | — | 4,000 | 6,000 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
1,203,854 | 551,214 | 25,277 | 211,883,644 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 162,568,523 | $ | 61,851,748 | $ | 8,213,892 | $ | 1,397,407,502 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 155,113,380 | $ | 71,751,996 | $ | 10,629,918 | $ | 964,450,457 | ||||||||
Distributable earnings (loss) |
7,455,143 | (9,900,248 | ) | (2,416,026 | ) | 432,957,045 | ||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 162,568,523 | $ | 61,851,748 | $ | 8,213,892 | $ | 1,397,407,502 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
3,250,001 | 2,800,001 | 400,001 | 9,250,001 | ||||||||||||
Net Asset Value |
$ | 50.02 | $ | 22.09 | $ | 20.53 | $ | 151.07 | ||||||||
† Securities on loan, at value |
$ | 14,183,739 | $ | 2,551,916 | $ | — | $ | 275,892,234 | ||||||||
†† Cost of foreign cash |
$ | — | $ | 356,137 | $ | 18,711 | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31/22. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 69 |
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 |
$ | 462,257,177 | $ | 227,162,575 | $ | 126,865,011 | $ | 169,811,069 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
7,591,069 | 3,027,697 | 264,465 | 225,693 | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
435,473,234 | 206,025,113 | 125,453,875 | 170,751,844 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
7,591,069 | 3,027,697 | 264,465 | 225,693 | ||||||||||||
Cash |
2,167,619 | 562,244 | 1,574,827 | 1,085,736 | ||||||||||||
Cash segregated at broker* |
1,801,241 | 293,055 | 325,154 | 135,778 | ||||||||||||
Foreign cash†† |
3,688,221 | 836,493 | — | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
53,896 | 37,421 | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
3,851,822 | 262,703 | 122,541 | 110,490 | ||||||||||||
Securities lending income |
29,235 | 9,896 | 790 | 562 | ||||||||||||
Capital shares issued |
— | — | 2,175,103 | — | ||||||||||||
Investment adviser |
— | — | — | — | ||||||||||||
Securities sold |
172,399 | — | 3,195,205 | — | ||||||||||||
Variation margin on futures contracts |
47,214 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
454,875,950 | 211,054,622 | 133,111,960 | 172,310,103 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
105,386 | 32,909 | — | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
7,591,069 | 3,027,697 | 264,465 | 225,693 | ||||||||||||
Deferred compensation (Note 7) |
83,761 | 41,902 | 4,785 | 5,691 | ||||||||||||
Investment advisory fees (Note 4) |
143,260 | 104,097 | 28,954 | 44,385 | ||||||||||||
Trustee fees (Note 7) |
12,396 | 6,743 | 1,402 | 3,487 | ||||||||||||
Securities purchased |
— | 5,188 | 2,135,643 | — | ||||||||||||
Deferred non-US capital gains taxes |
— | 720,142 | — | — | ||||||||||||
Due to Authorized Participant |
172,398 | — | — | — | ||||||||||||
Variation margin on futures contracts |
— | 177,031 | 69,533 | 49,871 | ||||||||||||
Capital shares redeemed |
— | — | 3,254,338 | — | ||||||||||||
Other |
13,500 | 50,000 | 3,000 | 1,050 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
8,121,770 | 4,165,709 | 5,762,120 | 330,177 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 446,754,180 | $ | 206,888,913 | $ | 127,349,840 | $ | 171,979,926 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 593,533,354 | $ | 300,134,185 | $ | 133,331,926 | $ | 177,469,288 | ||||||||
Distributable earnings (loss) |
(146,779,174 | ) | (93,245,272 | ) | (5,982,086 | ) | (5,489,362 | ) | ||||||||
|
|
|||||||||||||||
Net Assets |
$ | 446,754,180 | $ | 206,888,913 | $ | 127,349,840 | $ | 171,979,926 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
8,200,001 | 4,900,001 | 2,950,001 | 1,850,001 | ||||||||||||
Net Asset Value |
$ | 54.48 | $ | 42.22 | $ | 43.17 | $ | 92.96 | ||||||||
† Securities on loan, at value |
$ | 52,637,337 | $ | 8,215,520 | $ | 7,725,995 | $ | 9,174,813 | ||||||||
†† Cost of foreign cash |
$ | 3,668,199 | $ | 845,705 | $ | — | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31/22. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
70 | FLEXSHARES ANNUAL REPORT |
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 |
$ | 136,248,995 | $ | 23,943,923 | $ | 20,549,885 | $ | 4,923,430 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
442,946 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
145,829,313 | 21,936,504 | 17,060,066 | 3,824,002 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
442,946 | — | — | — | ||||||||||||
Cash |
630,009 | 151,787 | 11,858 | 19,663 | ||||||||||||
Cash segregated at broker* |
126,290 | 4,474 | 20,924 | 9,835 | ||||||||||||
Foreign cash†† |
95,996 | — | 26,497 | 17,586 | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
4,596 | — | 3,717 | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
347,364 | 18,395 | 54,875 | 4,639 | ||||||||||||
Securities lending income |
889 | — | — | — | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
— | 19 | 38 | — | ||||||||||||
Securities sold |
— | — | — | 8,982 | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
147,477,403 | 22,111,179 | 17,177,975 | 3,884,707 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
— | — | 927 | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
442,946 | — | — | — | ||||||||||||
Deferred compensation (Note 7) |
7,203 | — | — | — | ||||||||||||
Investment advisory fees (Note 4) |
50,063 | 1,618 | 1,681 | 610 | ||||||||||||
Trustee fees (Note 7) |
3,575 | 68 | 67 | 19 | ||||||||||||
Securities purchased |
— | — | — | 9,533 | ||||||||||||
Deferred non-US capital gains taxes |
— | — | — | — | ||||||||||||
Due to Authorized Participant |
— | — | — | — | ||||||||||||
Variation margin on futures contracts |
48,139 | 5,608 | 6,380 | 6,810 | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
— | 500 | — | — | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
551,926 | 7,794 | 9,055 | 16,972 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 146,925,477 | $ | 22,103,385 | $ | 17,168,920 | $ | 3,867,735 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 144,004,252 | $ | 24,293,000 | $ | 21,578,641 | $ | 5,009,376 | ||||||||
Distributable earnings (loss) |
2,921,225 | (2,189,615 | ) | (4,409,721 | ) | (1,141,641 | ) | |||||||||
|
|
|||||||||||||||
Net Assets |
$ | 146,925,477 | $ | 22,103,385 | $ | 17,168,920 | $ | 3,867,735 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
1,250,001 | 500,000 | 450,000 | 100,000 | ||||||||||||
Net Asset Value |
$ | 117.54 | $ | 44.21 | $ | 38.15 | $ | 38.68 | ||||||||
† Securities on loan, at value |
$ | 3,600,349 | $ | — | $ | — | $ | — | ||||||||
†† Cost of foreign cash |
$ | 96,981 | $ | — | $ | 26,388 | $ | 17,868 |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31/22. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 71 |
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 |
$ | 5,959,339,348 | $ | 2,547,512,547 | $ | 359,689,932 | $ | — | ||||||||
Affiliate securities, at cost |
— | — | — | 34,201,324 | ||||||||||||
Securities Lending Reinvestments, at cost |
200,125,034 | 27,954,570 | 2,527,416 | — | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
6,820,447,853 | 2,481,997,953 | 320,007,900 | — | ||||||||||||
Affiliate securities, at value |
— | — | — | 28,858,364 | ||||||||||||
Securities Lending Reinvestments, at value |
200,121,818 | 27,954,570 | 2,527,416 | — | ||||||||||||
Cash |
4,814,695 | 7,771,116 | 5,463,557 | 9,903 | ||||||||||||
Cash segregated at broker* |
3,384,673 | 2,567,896 | 1,135,692 | — | ||||||||||||
Foreign cash†† |
6,014,133 | 4,017,253 | 663,461 | — | ||||||||||||
Restricted cash** |
— | 203,240 | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
699,659 | — | 42,549 | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
3,760,445 | 6,674,598 | 1,333,352 | — | ||||||||||||
Securities lending income |
49,883 | 37,964 | 4,154 | — | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
— | — | — | — | ||||||||||||
Securities sold |
166,946 | 22,061 | 6,817 | — | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
7,039,460,105 | 2,531,246,651 | 331,184,898 | 28,868,267 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
988,169 | 48,973 | 28,860 | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
200,125,034 | 27,954,570 | 2,527,416 | — | ||||||||||||
Deferred compensation (Note 7) |
477,815 | 135,252 | 25,924 | 539 | ||||||||||||
Investment advisory fees (Note 4) |
2,601,155 | 946,185 | 119,883 | 2,399 | ||||||||||||
Trustee fees (Note 7) |
92,639 | 45,453 | 8,654 | 713 | ||||||||||||
Securities purchased |
— | — | — | — | ||||||||||||
Deferred non-US capital gains taxes |
— | 1,288,011 | — | — | ||||||||||||
Due to Authorized Participant |
166,946 | 203,240 | 6,817 | — | ||||||||||||
Variation margin on futures contracts |
127,853 | 80,554 | 84,663 | — | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
28,500 | 26,000 | 2,000 | — | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
204,608,111 | 30,728,238 | 2,804,217 | 3,651 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 6,834,851,994 | $ | 2,500,518,413 | $ | 328,380,681 | $ | 28,864,616 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 7,129,777,702 | $ | 2,750,801,700 | $ | 404,471,048 | $ | 34,563,743 | ||||||||
Distributable earnings (loss) |
(294,925,708 | ) | (250,283,287 | ) | (76,090,367 | ) | (5,699,127 | ) | ||||||||
|
|
|||||||||||||||
Net Assets |
$ | 6,834,851,994 | $ | 2,500,518,413 | $ | 328,380,681 | $ | 28,864,616 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
165,300,001 | 51,750,001 | 6,300,001 | 1,000,001 | ||||||||||||
Net Asset Value |
$ | 41.35 | $ | 48.32 | $ | 52.12 | $ | 28.86 | ||||||||
† Securities on loan, at value |
$ | 464,678,070 | $ | 156,517,412 | $ | 39,476,466 | $ | — | ||||||||
†† Cost of foreign cash |
$ | 5,450,282 | $ | 4,029,437 | $ | 662,616 | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31/22. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
72 | FLEXSHARES ANNUAL 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 |
$ | 1,375,589,496 | $ | 318,037,114 | $ | 16,262,177 | $ | 501,071,246 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
243,436,675 | 16,949,737 | 247,981 | 7,868,448 | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
1,515,318,768 | 340,028,276 | 17,688,939 | 422,801,748 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
243,434,668 | 16,949,737 | 247,981 | 7,868,448 | ||||||||||||
Cash |
6,031,784 | 4,808,744 | 254,569 | 1,092,531 | ||||||||||||
Cash segregated at broker* |
501,579 | 522,499 | 122,803 | 1,518,313 | ||||||||||||
Foreign cash†† |
— | — | — | 4,075,413 | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
— | — | — | 26,739 | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
1,502,690 | 310,084 | 17,632 | 3,181,180 | ||||||||||||
Securities lending income |
66,405 | 14,440 | 708 | 23,395 | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
— | — | — | — | ||||||||||||
Securities sold |
354,875 | — | — | 169,849 | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
1,767,210,769 | 362,633,780 | 18,332,632 | 440,757,616 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
— | — | — | 42,855 | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
243,436,675 | 16,949,737 | 247,981 | 7,868,448 | ||||||||||||
Deferred compensation (Note 7) |
156,707 | 37,565 | 5,817 | 66,156 | ||||||||||||
Investment advisory fees (Note 4) |
453,927 | 102,836 | 5,324 | 169,301 | ||||||||||||
Trustee fees (Note 7) |
28,994 | 8,086 | 521 | 12,289 | ||||||||||||
Securities purchased |
— | — | — | — | ||||||||||||
Deferred non-US capital gains taxes |
— | — | — | — | ||||||||||||
Due to Authorized Participant |
354,875 | — | — | 146,837 | ||||||||||||
Variation margin on futures contracts |
44,122 | 89,828 | 10,126 | 342,638 | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
5,650 | 2,150 | 400 | 12,000 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
244,480,950 | 17,190,202 | 270,169 | 8,660,524 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 1,522,729,819 | $ | 345,443,578 | $ | 18,062,463 | $ | 432,097,092 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 1,437,380,841 | $ | 350,673,014 | $ | 16,906,787 | $ | 692,660,025 | ||||||||
Distributable earnings (loss) |
85,348,978 | (5,229,436 | ) | 1,155,676 | (260,562,933 | ) | ||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 1,522,729,819 | $ | 345,443,578 | $ | 18,062,463 | $ | 432,097,092 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
29,125,001 | 6,825,001 | 325,001 | 23,400,001 | ||||||||||||
Net Asset Value |
$ | 52.28 | $ | 50.61 | $ | 55.58 | $ | 18.47 | ||||||||
† Securities on loan, at value |
$ | 288,651,348 | $ | 35,270,721 | $ | 1,462,542 | $ | 30,462,551 | ||||||||
†† Cost of foreign cash |
$ | — | $ | — | $ | — | $ | 4,069,870 |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31/22. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 73 |
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 |
$ | 44,872,925 | $ | 75,550,979 | $ | 2,273,651,424 | $ | 705,602,536 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
349,142 | 1,013,466 | — | — | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
39,803,427 | 60,865,236 | 2,154,633,577 | 642,970,545 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
349,142 | 1,013,466 | — | — | ||||||||||||
Cash |
163,293 | 282,821 | 2,818,291 | 1,329,344 | ||||||||||||
Cash segregated at broker* |
112,225 | 124,396 | — | — | ||||||||||||
Foreign cash†† |
173,448 | 208,436 | — | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | 10,609,362 | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
20,867 | 12,522 | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
341,325 | 369,291 | 3,615,545 | 1,011,100 | ||||||||||||
Securities lending income |
2,578 | 3,400 | 13,960 | 6,881 | ||||||||||||
Capital shares issued |
— | — | 1,179,224 | — | ||||||||||||
Investment adviser |
— | — | 4,699 | — | ||||||||||||
Securities sold |
— | 40,468 | 98,616,564 | 55,627,008 | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
40,966,305 | 62,920,036 | 2,271,491,222 | 700,944,878 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
2,597 | 2,501 | — | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
349,142 | 1,013,466 | — | — | ||||||||||||
Deferred compensation (Note 7) |
8,927 | 4,960 | 236,413 | 84,481 | ||||||||||||
Investment advisory fees (Note 4) |
16,807 | 24,243 | 330,329 | 97,000 | ||||||||||||
Trustee fees (Note 7) |
1,465 | 1,679 | 21,640 | 11,391 | ||||||||||||
Securities purchased |
— | — | 102,351,207 | 56,865,508 | ||||||||||||
Deferred non-US capital gains taxes |
— | — | — | — | ||||||||||||
Due to Authorized Participant |
— | 40,468 | — | — | ||||||||||||
Variation margin on futures contracts |
35,026 | 40,862 | — | — | ||||||||||||
Capital shares redeemed |
— | — | 10,613,018 | — | ||||||||||||
Other |
7,000 | 3,500 | — | — | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
420,964 | 1,131,679 | 113,552,607 | 57,058,380 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 40,545,341 | $ | 61,788,357 | $ | 2,157,938,615 | $ | 643,886,498 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 73,846,030 | $ | 96,011,229 | $ | 2,380,587,672 | $ | 731,665,217 | ||||||||
Distributable earnings (loss) |
(33,300,689 | ) | (34,222,872 | ) | (222,649,057 | ) | (87,778,719 | ) | ||||||||
|
|
|||||||||||||||
Net Assets |
$ | 40,545,341 | $ | 61,788,357 | $ | 2,157,938,615 | $ | 643,886,498 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
2,300,001 | 2,900,001 | 91,504,000 | 27,250,001 | ||||||||||||
Net Asset Value |
$ | 17.63 | $ | 21.31 | $ | 23.58 | $ | 23.63 | ||||||||
† Securities on loan, at value |
$ | 4,025,435 | $ | 6,321,311 | $ | 62,732,699 | $ | 59,169,651 | ||||||||
†† Cost of foreign cash |
$ | 173,795 | $ | 206,985 | $ | — | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31/22. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
74 | FLEXSHARES ANNUAL REPORT |
Statements of Assets and Liabilities (cont.)
FlexShares® Disciplined Duration MBS Index Fund |
FlexShares® US Corporate Bond Index Fund |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund |
FlexShares® Value-Scored Bond Index |
|||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost |
$ | 107,353,373 | $ | 265,179,777 | $ | 47,766,420 | $ | 950,787,508 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
96,171,521 | 234,820,853 | 34,694,439 | 861,008,645 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
— | — | — | — | ||||||||||||
Cash |
2,016,091 | 5,422,700 | 243,115 | 6,439,383 | ||||||||||||
Cash segregated at broker* |
— | — | — | — | ||||||||||||
Foreign cash†† |
— | — | — | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
— | — | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
291,023 | 2,279,582 | 533,685 | 16,758,714 | ||||||||||||
Securities lending income |
— | — | — | — | ||||||||||||
Capital shares issued |
— | — | — | 10,059,379 | ||||||||||||
Investment adviser |
— | — | — | — | ||||||||||||
Securities sold |
— | 10,568,298 | 1,211,484 | 72,003,214 | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
98,478,635 | 253,091,433 | 36,682,723 | 966,269,335 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
— | — | — | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
— | — | — | — | ||||||||||||
Deferred compensation (Note 7) |
6,126 | 12,501 | 2,935 | 5,625 | ||||||||||||
Investment advisory fees (Note 4) |
16,549 | 44,502 | 6,540 | 271,206 | ||||||||||||
Trustee fees (Note 7) |
1,798 | 5,364 | 1,133 | 9,038 | ||||||||||||
Securities purchased |
1,263,609 | 10,887,609 | 1,173,381 | 78,034,098 | ||||||||||||
Deferred non-US capital gains taxes |
— | — | — | — | ||||||||||||
Due to Authorized Participant |
— | — | — | — | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
1,600 | 2,500 | 1,000 | 4,000 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
1,289,682 | 10,952,476 | 1,184,989 | 78,323,967 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 97,188,953 | $ | 242,138,957 | $ | 35,497,734 | $ | 887,945,368 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 118,177,292 | $ | 283,117,668 | $ | 53,543,188 | $ | 1,057,237,406 | ||||||||
Distributable earnings (loss) |
(20,988,339 | ) | (40,978,711 | ) | (18,045,454 | ) | (169,292,038 | ) | ||||||||
|
|
|||||||||||||||
Net Assets |
$ | 97,188,953 | $ | 242,138,957 | $ | 35,497,734 | $ | 887,945,368 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
4,850,001 | 5,350,001 | 900,001 | 22,150,001 | ||||||||||||
Net Asset Value |
$ | 20.04 | $ | 45.26 | $ | 39.44 | $ | 40.09 | ||||||||
† 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 10/31/22. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 75 |
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 |
$ | 20,125,816 | $ | 27,069,070 | $ | 869,528,367 | $ | 112,314,776 | ||||||||
Affiliate securities, at cost |
— | — | — | 58,798,892 | ||||||||||||
Securities Lending Reinvestments, at cost |
— | — | — | 55,525,084 | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
19,887,403 | 21,969,323 | 858,655,437 | 101,694,979 | ||||||||||||
Affiliate securities, at value |
— | — | — | 55,861,232 | ||||||||||||
Securities Lending Reinvestments, at value |
— | — | — | 55,525,084 | ||||||||||||
Cash |
192,014 | 900,596 | 9,428,427 | 2,421,028 | ||||||||||||
Cash segregated at broker* |
— | — | — | — | ||||||||||||
Foreign cash†† |
— | — | — | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Due from Custodian |
— | 42,369 | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
— | — | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
344,089 | 221,923 | 3,914,134 | — | ||||||||||||
Securities lending income |
— | — | — | 20,059 | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
— | — | 2,525 | — | ||||||||||||
Securities sold |
937,986 | 621,574 | — | 551,493 | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
21,361,492 | 23,755,785 | 872,000,523 | 216,073,875 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Unrealized depreciation on forward foreign currency contracts |
— | — | — | — | ||||||||||||
Due to brokers |
— | — | — | 4,755 | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
— | — | — | 55,525,084 | ||||||||||||
Deferred compensation (Note 7) |
— | — | 26,677 | 4,838 | ||||||||||||
Investment advisory fees (Note 4) |
79 | 2,331 | 177,073 | 29,205 | ||||||||||||
Trustee fees (Note 7) |
737 | 577 | 7,638 | 1,771 | ||||||||||||
Securities purchased |
928,335 | 595,852 | 15,428,180 | 1,142,291 | ||||||||||||
Deferred non-US capital gains taxes |
— | — | — | — | ||||||||||||
Due to Authorized Participant |
— | — | — | — | ||||||||||||
Variation margin on futures contracts |
— | — | — | 3,852 | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
500 | 1,500 | 4,025 | — | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
929,651 | 600,260 | 15,643,593 | 56,711,796 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 20,431,841 | $ | 23,155,525 | $ | 856,356,930 | $ | 159,362,079 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 24,326,768 | $ | 33,560,550 | $ | 866,349,914 | $ | 189,199,913 | ||||||||
Distributable earnings (loss) |
(3,894,927 | ) | (10,405,025 | ) | (9,992,984 | ) | (29,837,834 | ) | ||||||||
|
|
|||||||||||||||
Net Assets |
$ | 20,431,841 | $ | 23,155,525 | $ | 856,356,930 | $ | 159,362,079 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
500,000 | 600,000 | 11,525,001 | 7,425,001 | ||||||||||||
Net Asset Value |
$ | 40.86 | $ | 38.59 | $ | 74.30 | $ | 21.46 | ||||||||
† Securities on loan, at value |
$ | — | $ | — | $ | — | $ | 53,981,888 | ||||||||
†† Cost of foreign cash |
$ | — | $ | — | $ | — | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31/22. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
76 | FLEXSHARES ANNUAL REPORT |
FlexShares® Trust
For the year ended October 31, 2022
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 |
$ | 2,925,652 | $ | 2,253,066 | $ | 494,699 | $ | 25,820,662 | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | 18,788 | ||||||||||||
Interest income |
1,260 | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
12,331 | 6,911 | — | 588,375 | ||||||||||||
Foreign withholding tax on dividends |
(7,796 | ) | (203,717 | ) | (49,127 | ) | (11,116 | ) | ||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
2,931,447 | 2,056,260 | 445,572 | 26,416,709 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
1,394 | 611 | 125 | 13,125 | ||||||||||||
Investment advisory fees |
357,704 | 225,185 | 56,549 | 3,837,927 | ||||||||||||
Trustee fees (Note 7) |
7,159 | 3,063 | 597 | 67,536 | ||||||||||||
Other expenses (Note 4) |
— | — | — | 499 | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
366,257 | 228,859 | 57,271 | 3,919,087 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Fees reimbursed by investment advisor (Note 4) |
(522 | ) | (211 | ) | (31 | ) | (5,294 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
365,735 | 228,648 | 57,240 | 3,913,793 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
2,565,712 | 1,827,612 | 388,332 | 22,502,916 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | 20,168 | ||||||||||||
Transactions in investment securities |
(2,979,504 | ) | (3,215,500 | ) | (644,694 | )(1) | (4,684,416 | ) | ||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | 18,076 | ||||||||||||
In-kind redemptions on investments in securities |
8,249,158 | 1,241,765 | (127,745 | ) | 75,176,145 | |||||||||||
Expiration or closing of futures contracts |
(283,104 | ) | (294,793 | ) | (48,717 | ) | (2,142,809 | ) | ||||||||
Settlement of forward foreign currency contracts |
— | 114,349 | 1,424 | — | ||||||||||||
Foreign currency transactions |
— | (78,991 | ) | (46,555 | ) | — | ||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
4,986,550 | (2,233,170 | ) | (866,287 | ) | 68,387,164 | ||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities |
(19,709,365 | ) | (13,494,919 | ) | (2,317,390 | )(2) | (329,444,776 | )(3) | ||||||||
Securities lending |
— | — | — | (4,997 | ) | |||||||||||
Futures contracts |
(1,744 | ) | (47,271 | ) | (6,048 | ) | (170,946 | ) | ||||||||
Forward foreign currency contracts |
— | 9,729 | (2 | ) | — | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
— | (25,210 | ) | 1,064 | — | |||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(19,711,109 | ) | (13,557,671 | ) | (2,322,376 | ) | (329,620,719 | ) | ||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
(14,724,559 | ) | (15,790,841 | ) | (3,188,663 | ) | (261,233,555 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | (12,158,847 | ) | $ | (13,963,229 | ) | $ | (2,800,331 | ) | $ | (238,730,639 | ) | ||||
|
|
(1) |
Net of non-US capital gains tax of $(30,907). |
(2) |
Net of deferred non-US capital gains tax of $9,995. |
(3) |
Includes $(287,907) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 77 |
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 |
$ | 19,415,738 | $ | 12,732,437 | $ | 2,284,909 | $ | 2,807,589 | ||||||||
Income from non-cash dividends |
1,066,208 | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | 1,575 | ||||||||||||
Interest income |
22 | 7 | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
437,114 | 160,511 | 11,911 | 8,610 | ||||||||||||
Foreign withholding tax on dividends |
(1,988,683 | ) | (1,413,236 | ) | — | — | ||||||||||
Foreign withholding tax on interest |
— | (7 | ) | — | — | |||||||||||
|
|
|||||||||||||||
Total Investment Income |
18,930,399 | 11,479,712 | 2,296,820 | 2,817,774 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
4,791 | 2,468 | 1,222 | 1,585 | ||||||||||||
Investment advisory fees |
2,161,436 | 1,656,739 | 424,992 | 590,773 | ||||||||||||
Trustee fees (Note 7) |
24,307 | 12,278 | 6,277 | 8,117 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
2,190,534 | 1,671,485 | 432,491 | 600,475 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Fees reimbursed by investment advisor (Note 4) |
(1,805 | ) | (1,044 | ) | (1,790 | ) | (569 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
2,188,729 | 1,670,441 | 430,701 | 599,906 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
16,741,670 | 9,809,271 | 1,866,119 | 2,217,868 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | (24,306 | ) | |||||||||||
Transactions in investment securities |
(2,663,097 | ) | (13,461,292 | )(1) | (2,172,619 | ) | (4,127,036 | ) | ||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | (93 | ) | |||||||||||
In-kind redemptions on investments in securities |
6,893,368 | 1,253,873 | 14,142,209 | 8,342,410 | ||||||||||||
Expiration or closing of futures contracts |
(755,268 | ) | (904,011 | ) | (273,891 | ) | (95,274 | ) | ||||||||
Settlement of forward foreign currency contracts |
(745,024 | ) | 160,911 | — | — | |||||||||||
Foreign currency transactions |
(1,217,558 | ) | (307,615 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
1,512,421 | (13,258,134 | ) | 11,695,699 | 4,095,701 | |||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
(161,309,408 | ) | (79,782,880 | )(2) | (32,689,339 | ) | (39,458,575 | ) | ||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
(55,871 | ) | (127,750 | ) | (95,079 | ) | (75,559 | ) | ||||||||
Forward foreign currency contracts |
71,255 | (4,724 | ) | — | — | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
(379,882 | ) | (5,274 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(161,673,906 | ) | (79,920,628 | ) | (32,784,418 | ) | (39,534,134 | ) | ||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
(160,161,485 | ) | (93,178,762 | ) | (21,088,719 | ) | (35,438,433 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | (143,419,815 | ) | $ | (83,369,491 | ) | $ | (19,222,600 | ) | $ | (33,220,565 | ) | ||||
|
|
(1) |
Net of non-US capital gains tax of $(11,144). |
(2) |
Net of deferred non-US capital gains tax of $719,339. |
See Accompanying Notes to the Financial Statements.
78 | FLEXSHARES ANNUAL REPORT |
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 October 31, 2022 |
||||||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income |
$ | 3,701,745 | $ | 172,902 | $ | 517,138 | $ | 91,679 | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | — | ||||||||||||
Interest income |
4 | 107 | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
20,284 | — | — | — | ||||||||||||
Foreign withholding tax on dividends |
(210,629 | ) | — | (59,034 | ) | (11,413 | ) | |||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
3,511,404 | 173,009 | 458,104 | 80,266 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
1,432 | 73 | 104 | 21 | ||||||||||||
Investment advisory fees |
698,019 | 9,585 | 15,800 | 4,309 | ||||||||||||
Trustee fees (Note 7) |
7,277 | 471 | 581 | 108 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
706,728 | 10,129 | 16,485 | 4,438 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Fees reimbursed by investment advisor (Note 4) |
(494 | ) | (19 | ) | (38 | ) | (12 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
706,234 | 10,110 | 16,447 | 4,426 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
2,805,170 | 162,899 | 441,657 | 75,840 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
(4,600,693 | ) | (195,104 | ) | (913,975 | ) | (49,403 | ) | ||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
8,341,868 | 80,873 | — | — | ||||||||||||
Expiration or closing of futures contracts |
(387,711 | ) | (19,215 | ) | (43,003 | ) | (4,688 | ) | ||||||||
Settlement of forward foreign currency contracts |
156,936 | — | 2,773 | — | ||||||||||||
Foreign currency transactions |
(157,081 | ) | — | (11,912 | ) | 8,806 | ||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
3,353,319 | (133,446 | ) | (966,117 | ) | (45,285 | ) | |||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
(41,688,994 | ) | (2,173,361 | ) | (3,595,140 | ) | (1,099,428 | ) | ||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
(91,583 | ) | (6,858 | ) | (4,776 | ) | (6,812 | ) | ||||||||
Forward foreign currency contracts |
(6,243 | ) | — | 4,137 | — | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
(11,824 | ) | — | (1,384 | ) | (292 | ) | |||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(41,798,644 | ) | (2,180,219 | ) | (3,597,163 | ) | (1,106,532 | ) | ||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
(38,445,325 | ) | (2,313,665 | ) | (4,563,280 | ) | (1,151,817 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | (35,640,155 | ) | $ | (2,150,766 | ) | $ | (4,121,623 | ) | $ | (1,075,977 | ) | ||||
|
|
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 79 |
Statements of Operations (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund |
FlexShares® STOXX® Global Broad Infrastructure Index Fund |
FlexShares® Real Estate Index Fund |
FlexShares® Real Assets Allocation Index Fund |
|||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income |
$ | 328,254,806 | $ | 81,355,064 | $ | 12,762,427 | $ | — | ||||||||
Income from non-cash dividends |
45,208,148 | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | 1,093,149 | ||||||||||||
Interest income |
— | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
1,614,496 | 567,457 | 63,128 | — | ||||||||||||
Foreign withholding tax on dividends |
(14,614,391 | ) | (5,194,825 | ) | (474,318 | ) | — | |||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
360,463,059 | 76,727,696 | 12,351,237 | 1,093,149 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
63,094 | 21,813 | 3,510 | 325 | ||||||||||||
Investment advisory fees |
33,544,536 | 12,080,810 | 1,804,239 | 209,506 | ||||||||||||
Trustee fees (Note 7) |
326,096 | 113,957 | 17,625 | 1,600 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
33,933,726 | 12,216,580 | 1,825,374 | 211,431 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Fees reimbursed by investment advisor (Note 4) |
(29,020 | ) | (8,180 | ) | (1,286 | ) | (170,806 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
33,904,706 | 12,208,400 | 1,824,088 | 40,625 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
326,558,353 | 64,519,296 | 10,527,149 | 1,052,524 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | (231,991 | ) | |||||||||||
Transactions in investment securities |
(57,440,335 | )(1) | (51,294,880 | )(2) | (9,429,173 | ) | — | |||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | (115,194 | ) | |||||||||||
In-kind redemptions on investments in securities |
615,401,700 | 21,478,609 | 9,996,330 | — | ||||||||||||
Expiration or closing of futures contracts |
(8,445,121 | ) | (1,241,022 | ) | (1,219,139 | ) | — | |||||||||
Settlement of forward foreign currency contracts |
(1,217,160 | ) | (793,098 | ) | 34,177 | — | ||||||||||
Foreign currency transactions |
(4,378,904 | ) | (2,434,316 | ) | (587,972 | ) | — | |||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
543,920,180 | (34,284,707 | ) | (1,205,777 | ) | (347,185 | ) | |||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
(256,098,969 | )(3) | (413,002,200 | )(4) | (112,395,870 | ) | (6,504,289 | )(5) | ||||||||
Securities lending |
(3,265 | ) | — | — | — | |||||||||||
Futures contracts |
(875,882 | ) | (434,981 | ) | (174,520 | ) | — | |||||||||
Forward foreign currency contracts |
(682,867 | ) | 201,860 | 19,617 | — | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
144,454 | (337,764 | ) | (54,585 | ) | — | ||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(257,516,529 | ) | (413,573,085 | ) | (112,605,358 | ) | (6,504,289 | ) | ||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
286,403,651 | (447,857,792 | ) | (113,811,135 | ) | (6,851,474 | ) | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 612,962,004 | $ | (383,338,496 | ) | $ | (103,283,986 | ) | $ | (5,798,950 | ) | |||||
|
|
(1) |
Net of non-US capital gains tax of $(106,852). |
(2) |
Net of non-US capital gains tax of $(346,303). |
(3) |
Net of deferred non-US capital gains tax of $537,973. |
(4) |
Net of deferred non-US capital gains tax of $1,288,011. |
(5) |
Includes $(6,504,289) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
80 | FLEXSHARES ANNUAL REPORT |
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 |
$ | 41,609,388 | $ | 10,073,709 | $ | 493,796 | $ | 33,788,774 | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | — | ||||||||||||
Interest income |
— | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
573,559 | 118,070 | 6,113 | 209,170 | ||||||||||||
Foreign withholding tax on dividends |
— | — | — | (3,306,424 | ) | |||||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
42,182,947 | 10,191,779 | 499,909 | 30,691,520 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
||||||||||||||||
Deferred compensation (Note 7) |
13,793 | 3,515 | 177 | 4,776 | ||||||||||||
Investment advisory fees |
5,972,446 | 1,484,915 | 75,485 | 2,582,906 | ||||||||||||
Trustee fees (Note 7) |
71,345 | 17,566 | 854 | 24,161 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
6,057,584 | 1,505,996 | 76,516 | 2,611,843 | ||||||||||||
|
|
|||||||||||||||
Less: |
||||||||||||||||
Fees reimbursed by investment advisor (Note 4) |
(4,869 | ) | (1,162 | ) | (18 | ) | (1,944 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
6,052,715 | 1,504,834 | 76,498 | 2,609,899 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
36,130,232 | 8,686,945 | 423,411 | 28,081,621 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
||||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
(47,778,501 | ) | (8,258,739 | ) | (151,822 | ) | (33,464,887 | ) | ||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
124,766,672 | 44,746,230 | 1,581,915 | 2,302,932 | ||||||||||||
Expiration or closing of futures contracts |
(2,464,197 | ) | (874,263 | ) | (41,226 | ) | (2,280,920 | ) | ||||||||
Settlement of forward foreign currency contracts |
— | — | — | (813,046 | ) | |||||||||||
Foreign currency transactions |
— | — | — | (1,133,722 | ) | |||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
74,523,974 | 35,613,228 | 1,388,867 | (35,389,643 | ) | |||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
(248,671,370 | ) | (74,828,907 | ) | (3,851,489 | ) | (140,207,633 | ) | ||||||||
Securities lending |
(2,043 | ) | — | — | — | |||||||||||
Futures contracts |
(284,371 | ) | (138,287 | ) | (19,610 | ) | (335,187 | ) | ||||||||
Forward foreign currency contracts |
— | — | — | 81,207 | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
— | — | — | (270,285 | ) | |||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(248,957,784 | ) | (74,967,194 | ) | (3,871,099 | ) | (140,731,898 | ) | ||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
(174,433,810 | ) | (39,353,966 | ) | (2,482,232 | ) | (176,121,541 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | (138,303,578 | ) | $ | (30,667,021 | ) | $ | (2,058,821 | ) | $ | (148,039,920 | ) | ||||
|
|
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 81 |
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 |
$ | 3,417,924 | $ | 4,476,464 | $ | — | $ | — | ||||||||
Income from non-cash dividends |
— | 461,798 | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | — | ||||||||||||
Interest income |
— | — | 133,398,438 | 53,746,461 | ||||||||||||
Securities lending income (net of fees) (Note 2) |
29,890 | 41,027 | 68,825 | 53,720 | ||||||||||||
Foreign withholding tax on dividends |
(326,249 | ) | (477,781 | ) | — | — | ||||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
3,121,565 | 4,501,508 | 133,467,263 | 53,800,181 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
||||||||||||||||
Deferred compensation (Note 7) |
541 | 651 | 15,978 | 6,580 | ||||||||||||
Investment advisory fees |
287,883 | 354,718 | 3,426,960 | 1,350,627 | ||||||||||||
Administration fees (Note 5) |
— | — | — | 30,372 | ||||||||||||
Trustee fees (Note 7) |
2,664 | 3,307 | 85,572 | 33,236 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
291,088 | 358,676 | 3,528,510 | 1,420,815 | ||||||||||||
|
|
|||||||||||||||
Less: |
||||||||||||||||
Fees reimbursed by investment advisor (Note 4) |
(198 | ) | (248 | ) | (8,159 | ) | (33,375 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
290,890 | 358,428 | 3,520,351 | 1,387,440 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
2,830,675 | 4,143,080 | 129,946,912 | 52,412,741 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
||||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
(4,697,687 | )(1) | (5,809,981 | )(2) | (62,652,067 | ) | (25,865,562 | ) | ||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
238,765 | 14,821 | 1,449,246 | 2,289,950 | ||||||||||||
Expiration or closing of futures contracts |
(422,328 | ) | (481,777 | ) | — | — | ||||||||||
Settlement of forward foreign currency contracts |
174,674 | 96,732 | — | — | ||||||||||||
Foreign currency transactions |
(184,098 | ) | (155,944 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
(4,890,674 | ) | (6,336,149 | ) | (61,202,821 | ) | (23,575,612 | ) | ||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
(12,660,048 | ) | (19,614,243 | ) | (171,934,382 | ) | (102,258,738 | ) | ||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
(18,210 | ) | (30,953 | ) | — | — | ||||||||||
Forward foreign currency contracts |
4,749 | 5,959 | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
(34,097 | ) | (28,660 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(12,707,606 | ) | (19,667,897 | ) | (171,934,382 | ) | (102,258,738 | ) | ||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
(17,598,280 | ) | (26,004,046 | ) | (233,137,203 | ) | (125,834,350 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | (14,767,605 | ) | $ | (21,860,966 | ) | $ | (103,190,291 | ) | $ | (73,421,609 | ) | ||||
|
|
(1) |
Net of non-US capital gains tax of $696. |
(2) |
Net of non-US capital gains tax of $(12,389). |
See Accompanying Notes to the Financial Statements.
82 | FLEXSHARES ANNUAL REPORT |
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 |
1,542,337 | 6,248,942 | 2,008,279 | 57,253,411 | ||||||||||||
Securities lending income (net of fees) (Note 2) |
— | — | — | — | ||||||||||||
Foreign withholding tax on dividends |
— | — | — | — | ||||||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
1,542,337 | 6,248,942 | 2,008,279 | 57,253,411 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
||||||||||||||||
Deferred compensation (Note 7) |
939 | 2,288 | 433 | 6,668 | ||||||||||||
Investment advisory fees |
221,444 | 588,642 | 108,214 | 2,949,144 | ||||||||||||
Trustee fees (Note 7) |
4,878 | 11,670 | 2,128 | 35,858 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
227,261 | 602,600 | 110,775 | 2,991,670 | ||||||||||||
|
|
|||||||||||||||
Less: |
||||||||||||||||
Fees reimbursed by investment advisor (Note 4) |
(382 | ) | (828 | ) | (144 | ) | (3,238 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
226,879 | 601,772 | 110,631 | 2,988,432 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
1,315,458 | 5,647,170 | 1,897,648 | 54,264,979 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
||||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
(4,182,658 | ) | (10,722,054 | ) | (5,104,776 | ) | (84,076,492 | ) | ||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
— | (802,474 | ) | — | (747,168 | ) | ||||||||||
Expiration or closing of futures contracts |
— | — | — | — | ||||||||||||
Settlement of forward foreign currency contracts |
— | — | — | — | ||||||||||||
Foreign currency transactions |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
(4,182,658 | ) | (11,524,528 | ) | (5,104,776 | ) | (84,823,660 | ) | ||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
(11,405,968 | ) | (31,515,973 | ) | (14,928,195 | ) | (89,845,656 | ) | ||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
— | — | — | — | ||||||||||||
Forward foreign currency contracts |
— | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(11,405,968 | ) | (31,515,973 | ) | (14,928,195 | ) | (89,845,656 | ) | ||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
(15,588,626 | ) | (43,040,501 | ) | (20,032,971 | ) | (174,669,316 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | (14,273,168 | ) | $ | (37,393,331 | ) | $ | (18,135,323 | ) | $ | (120,404,337 | ) | ||||
|
|
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 83 |
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 |
$ | — | $ | — | $ | — | $ | 1,695,332 | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | 1,787,315 | ||||||||||||
Interest income |
1,060,998 | 1,076,341 | 10,127,650 | 8,998 | ||||||||||||
Securities lending income (net of fees) (Note 2) |
— | — | — | 104,648 | ||||||||||||
Foreign withholding tax on dividends |
— | — | — | — | ||||||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
1,060,998 | 1,076,341 | 10,127,650 | 3,596,293 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
||||||||||||||||
Deferred compensation (Note 7) |
207 | 387 | 4,860 | 1,200 | ||||||||||||
Investment advisory fees |
52,998 | 50,966 | 1,503,233 | 512,397 | ||||||||||||
Trustee fees (Note 7) |
1,132 | 1,849 | 27,136 | 6,547 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
54,337 | 53,202 | 1,535,229 | 520,144 | ||||||||||||
|
|
|||||||||||||||
Less: |
||||||||||||||||
Fees reimbursed by investment advisor (Note 4) |
(206 | ) | (154 | ) | (2,525 | ) | (202,703 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
54,131 | 53,048 | 1,532,704 | 317,441 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
1,006,867 | 1,023,293 | 8,594,946 | 3,278,852 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
||||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | (7,627,842 | ) | |||||||||||
Transactions in investment securities |
(3,550,393 | ) | (5,269,138 | ) | (815,721 | ) | (7,382,999 | ) | ||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | 3,719 | ||||||||||||
In-kind redemptions on investments in securities |
(72,176 | ) | — | — | 102,560 | |||||||||||
Expiration or closing of futures contracts |
— | — | — | 1,174 | ||||||||||||
Settlement of forward foreign currency contracts |
— | — | — | — | ||||||||||||
Foreign currency transactions |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
(3,622,569 | ) | (5,269,138 | ) | (815,721 | ) | (14,903,388 | ) | ||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
171,352 | (4,417,178 | ) | (11,518,881 | ) | (13,963,561 | )(1) | |||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
— | — | — | (3,960 | ) | |||||||||||
Forward foreign currency contracts |
— | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
171,352 | (4,417,178 | ) | (11,518,881 | ) | (13,967,521 | ) | |||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
(3,451,217 | ) | (9,686,316 | ) | (12,334,602 | ) | (28,870,909 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | (2,444,350 | ) | $ | (8,663,023 | ) | $ | (3,739,656 | ) | $ | (25,592,057 | ) | ||||
|
|
(1) |
Includes $(2,999,007) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
84 | FLEXSHARES ANNUAL REPORT |
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 |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 2,565,712 | $ | 1,643,691 | $ | 1,827,612 | $ | 2,226,694 | ||||||||
Net realized gain (loss) |
4,986,550 | 9,877,154 | (2,233,170 | ) | 4,060,236 | |||||||||||
Net change in unrealized appreciation (depreciation) |
(19,711,109 | ) | 29,486,420 | (13,557,671 | ) | 8,924,507 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(12,158,847 | ) | 41,007,265 | (13,963,229 | ) | 15,211,437 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(2,196,287 | ) | (1,694,565 | ) | (2,140,729 | ) | (2,249,889 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(2,196,287 | ) | (1,694,565 | ) | (2,140,729 | ) | (2,249,889 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
51,896,738 | 56,108,720 | 10,600,255 | 13,390,874 | ||||||||||||
Cost of shares redeemed |
(36,047,573 | ) | (44,870,466 | ) | (8,015,506 | ) | (16,728,469 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
15,849,165 | 11,238,254 | 2,584,749 | (3,337,595 | ) | |||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
1,494,031 | 50,550,954 | (13,519,209 | ) | 9,623,953 | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 161,074,492 | $ | 110,523,538 | $ | 75,370,957 | $ | 65,747,004 | (3) | |||||||
|
|
|||||||||||||||
End of Period |
$ | 162,568,523 | $ | 161,074,492 | $ | 61,851,748 | $ | 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 |
1,000,000 | 1,150,000 | 300,000 | 500,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(700,000 | ) | (900,000 | ) | (300,000 | ) | (600,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
3,250,001 | 2,950,001 | 2,800,001 | 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. |
(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 ANNUAL REPORT | 85 |
Statements of Changes in Net Assets (cont.)
FlexShares® Emerging Markets Quality Low Volatility Index Fund |
FlexShares® Morningstar
US Market Factor Tilt Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 388,332 | $ | 384,138 | $ | 22,502,916 | $ | 20,467,734 | ||||||||
Net realized gain (loss) |
(866,287 | ) | 204,217 | 68,387,164 | 125,723,634 | |||||||||||
Net change in unrealized appreciation (depreciation) |
(2,322,376 | ) | 669,161 | (329,620,719 | ) | 436,303,767 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(2,800,331 | ) | 1,257,516 | (238,730,639 | ) | 582,495,135 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(416,284 | ) | (269,007 | ) | (22,299,297 | ) | (19,993,786 | ) | ||||||||
Tax return of capital |
(24,777 | ) | — | — | — | |||||||||||
|
|
|||||||||||||||
Total distributions |
(441,061 | ) | (269,007 | ) | (22,299,297 | ) | (19,993,786 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
— | 5,276,872 | 59,308,274 | 95,734,574 | ||||||||||||
Cost of shares redeemed |
(4,388,407 | ) | — | (127,889,854 | ) | (106,003,334 | ) | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(4,388,407 | ) | 5,276,872 | (68,581,580 | ) | (10,268,760 | ) | |||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(7,629,799 | ) | 6,265,381 | (329,611,516 | ) | 552,232,589 | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 15,843,691 | $ | 9,578,310 | (3) | $ | 1,727,019,018 | $ | 1,174,786,429 | |||||||
|
|
|||||||||||||||
End of Period |
$ | 8,213,892 | $ | 15,843,691 | $ | 1,397,407,502 | $ | 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 | 350,000 | 600,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(200,000 | ) | — | (750,000 | ) | (650,000 | ) | |||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
400,001 | 600,001 | 9,250,001 | 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. |
(3) |
Includes amounts paid in capital from the Authorized Participant in addition to the order’s original cash component. This amount is made 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.
86 | FLEXSHARES ANNUAL REPORT |
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 |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 16,741,670 | $ | 15,324,867 | $ | 9,809,271 | $ | 7,624,187 | ||||||||
Net realized gain (loss) |
1,512,421 | 21,856,890 | (13,258,134 | ) | 25,611,349 | |||||||||||
Net change in unrealized appreciation (depreciation) |
(161,673,906 | ) | 152,302,928 | (79,920,628 | ) | 31,176,773 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(143,419,815 | ) | 189,484,685 | (83,369,491 | ) | 64,412,309 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(22,504,833 | ) | (13,410,048 | ) | (12,431,512 | ) | (6,011,707 | ) | ||||||||
Tax return of capital |
(992,999 | ) | — | — | — | |||||||||||
|
|
|||||||||||||||
Total distributions |
(23,497,832 | ) | (13,410,048 | ) | (12,431,512 | ) | (6,011,707 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
14,617,000 | 44,016,396 | 10,793,304 | 50,124,591 | ||||||||||||
Cost of shares redeemed |
(49,583,666 | ) | (70,468,136 | ) | (42,475,383 | ) | — | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(34,966,666 | ) | (26,451,740 | ) | (31,682,079 | ) | 50,124,591 | |||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(201,884,313 | ) | 149,622,897 | (127,483,082 | ) | 108,525,193 | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 648,638,493 | $ | 499,015,596 | $ | 334,371,995 | $ | 225,846,802 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 446,754,180 | $ | 648,638,493 | $ | 206,888,913 | $ | 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 | 200,000 | 800,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(800,000 | ) | (1,000,000 | ) | (800,000 | ) | — | |||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
8,200,001 | 8,800,001 | 4,900,001 | 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.
FLEXSHARES ANNUAL REPORT | 87 |
Statements of Changes in Net Assets (cont.)
FlexShares® US Quality Large Cap Index Fund |
FlexShares® STOXX® US ESG Select Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 1,866,119 | $ | 1,172,409 | $ | 2,217,868 | $ | 2,051,388 | ||||||||
Net realized gain (loss) |
11,695,699 | 5,820,892 | 4,095,701 | 25,495,358 | ||||||||||||
Net change in unrealized appreciation (depreciation) |
(32,784,418 | ) | 26,126,364 | (39,534,134 | ) | 24,935,787 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(19,222,600 | ) | 33,119,665 | (33,220,565 | ) | 52,482,533 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
||||||||||||||||
Distributable earnings |
(1,808,374 | ) | (1,136,947 | ) | (2,266,829 | ) | (1,955,493 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(1,808,374 | ) | (1,136,947 | ) | (2,266,829 | ) | (1,955,493 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
||||||||||||||||
Proceeds from shares issued |
57,305,777 | 54,387,819 | 37,713,363 | 115,766,022 | ||||||||||||
Cost of shares redeemed |
(53,400,212 | ) | (13,737,728 | ) | (21,888,788 | ) | (63,701,888 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
3,905,565 | 40,650,091 | 15,824,575 | 52,064,134 | ||||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(17,125,409 | ) | 72,632,809 | (19,662,819 | ) | 102,591,174 | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
||||||||||||||||
Beginning of Period |
$ | 144,475,249 | $ | 71,842,440 | $ | 191,642,745 | $ | 89,051,571 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 127,349,840 | $ | 144,475,249 | $ | 171,979,926 | $ | 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 |
1,300,000 | 1,150,000 | 350,000 | 1,200,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(1,225,000 | ) | (300,000 | ) | (200,000 | ) | (625,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
2,950,001 | 2,875,001 | 1,850,001 | 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.
88 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® STOXX® Global ESG Select Index Fund |
FlexShares® ESG & Climate US Large Cap Core Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
September 20, 2021* through October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 2,805,170 | $ | 2,456,041 | $ | 162,899 | $ | 2,838 | ||||||||
Net realized gain (loss) |
3,353,319 | 13,795,248 | (133,446 | ) | (534 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
(41,798,644 | ) | 34,498,730 | (2,180,219 | ) | 167,182 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(35,640,155 | ) | 50,750,019 | (2,150,766 | ) | 169,486 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
||||||||||||||||
Distributable earnings |
(3,114,461 | ) | (2,324,712 | ) | (129,697 | ) | ||||||||||
|
|
|||||||||||||||
Total distributions |
(3,114,461 | ) | (2,324,712 | ) | (129,697 | ) | — | |||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
||||||||||||||||
Proceeds from shares issued |
14,352,429 | 53,795,593 | 24,984,332 | — | ||||||||||||
Cost of shares redeemed |
(14,389,810 | ) | (27,826,718 | ) | (3,269,970 | ) | — | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(37,381 | ) | 25,968,875 | 21,714,362 | — | |||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(38,791,997 | ) | 74,394,182 | 19,433,899 | 169,486 | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
||||||||||||||||
Beginning of Period |
$ | 185,717,474 | $ | 111,323,292 | $ | 2,669,486 | $ | 2,500,000 | (2) | |||||||
|
|
|||||||||||||||
End of Period |
$ | 146,925,477 | $ | 185,717,474 | $ | 22,103,385 | $ | 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 | 525,000 | — | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(100,000 | ) | (200,000 | ) | (75,000 | ) | — | |||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
1,250,001 | 1,250,001 | 500,000 | 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. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 89 |
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 |
|||||||||||
Year
Ended October 31, 2022 |
September 20, through |
April 20, 2022* through October 31, 2022 |
||||||||||
OPERATIONS |
| |||||||||||
Net investment income (loss) |
$ | 441,657 | $ | 15,775 | $ | 75,840 | ||||||
Net realized gain (loss) |
(966,117 | ) | (777 | ) | (45,285 | ) | ||||||
Net change in unrealized appreciation (depreciation) |
(3,597,163 | ) | 103,891 | (1,106,532 | ) | |||||||
|
|
|||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||
Resulting from Operations |
(4,121,623 | ) | 118,889 | (1,075,977 | ) | |||||||
|
|
|||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||
Distributable earnings |
(406,987 | ) | (65,664 | ) | ||||||||
|
|
|||||||||||
Total distributions |
(406,987 | ) | — | (65,664 | ) | |||||||
|
|
|||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||
Proceeds from shares issued |
16,578,470 | — | — | |||||||||
Cost of shares redeemed |
— | — | — | |||||||||
|
|
|||||||||||
Net Increase (Decrease) from Capital Transactions |
16,578,470 | — | — | |||||||||
|
|
|||||||||||
Total Increase (Decrease) in Net Assets |
12,049,860 | 118,889 | (1,141,641 | ) | ||||||||
|
|
|||||||||||
NET ASSETS |
| |||||||||||
Beginning of Period |
$ | 5,119,060 | $ | 5,000,171 | (2) | $ | 5,009,376 | (2),(3) | ||||
|
|
|||||||||||
End of Period |
$ | 17,168,920 | $ | 5,119,060 | $ | 3,867,735 | ||||||
|
|
|||||||||||
SHARE TRANSACTIONS |
| |||||||||||
Beginning of period |
100,000 | 100,000 | (2) | 100,000 | (2) | |||||||
Shares issued |
— | — | — | |||||||||
Shares issued in-kind |
350,000 | — | — | |||||||||
Shares redeemed |
— | — | — | |||||||||
Shares redeemed in-kind |
— | — | — | |||||||||
|
|
|||||||||||
Shares Outstanding, End of Period |
450,000 | 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.
90 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares®
Morningstar Global Upstream Natural Resources Index Fund |
FlexShares® STOXX®
Global Broad Infrastructure Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 326,558,353 | $ | 188,997,153 | $ | 64,519,296 | $ | 61,807,665 | ||||||||
Net realized gain (loss) |
543,920,180 | (71,904,345 | ) | (34,284,707 | ) | 117,716,133 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(257,516,529 | ) | 1,409,046,021 | (413,573,085 | ) | 271,965,150 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
612,962,004 | 1,526,138,829 | (383,338,496 | ) | 451,488,948 | |||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(349,767,759 | ) | (167,354,837 | ) | (71,164,043 | ) | (58,905,802 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(349,767,759 | ) | (167,354,837 | ) | (71,164,043 | ) | (58,905,802 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
2,228,186,786 | 1,894,646,901 | 376,096,311 | 754,964,371 | ||||||||||||
Cost of shares redeemed |
(1,709,239,303 | ) | (125,446,435 | ) | (64,981,425 | ) | (360,237,628 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
518,947,483 | 1,769,200,466 | 311,114,886 | 394,726,743 | ||||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
782,141,728 | 3,127,984,458 | (143,387,653 | ) | 787,309,889 | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 6,052,710,266 | $ | 2,924,725,808 | $ | 2,643,906,066 | $ | 1,856,596,177 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 6,834,851,994 | $ | 6,052,710,266 | $ | 2,500,518,413 | $ | 2,643,906,066 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
156,550,001 | 109,500,001 | 45,800,001 | 38,600,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
51,400,000 | 50,850,000 | 7,100,000 | 13,350,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(42,650,000 | ) | (3,800,000 | ) | (1,150,000 | ) | (6,150,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
165,300,001 | 156,550,001 | 51,750,001 | 45,800,001 | ||||||||||||
|
|
(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 ANNUAL REPORT | 91 |
Statements of Changes in Net Assets (cont.)
FlexShares® Global
Quality Real Estate Index Fund |
FlexShares® Real
Assets Allocation Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 10,527,149 | $ | 7,422,552 | $ | 1,052,524 | $ | 379,252 | ||||||||
Net realized gain (loss) |
(1,205,777 | ) | 10,254,699 | (347,185 | ) | 233,987 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(112,605,358 | ) | 91,009,496 | (6,504,289 | ) | 1,551,258 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(103,283,986 | ) | 108,686,747 | (5,798,950 | ) | 2,164,497 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(12,433,295 | ) | (5,654,125 | ) | (1,056,448 | ) | (383,940 | ) | ||||||||
Tax return of capital |
(212,283 | ) | — | — | — | |||||||||||
|
|
|||||||||||||||
Total distributions |
(12,645,578 | ) | (5,654,125 | ) | (1,056,448 | ) | (383,940 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
61,391,019 | 74,006,928 | 31,091,126 | 24,868,156 | ||||||||||||
Cost of shares redeemed |
(35,678,157 | ) | (23,016,532 | ) | (25,670,798 | ) | (850,756 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
25,712,862 | 50,990,396 | 5,420,328 | 24,017,400 | ||||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(90,216,702 | ) | 154,023,018 | (1,435,070 | ) | 25,797,957 | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 418,597,383 | $ | 264,574,365 | $ | 30,299,686 | $ | 4,501,729 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 328,380,681 | $ | 418,597,383 | $ | 28,864,616 | $ | 30,299,686 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
5,950,001 | 5,200,001 | 900,001 | 175,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
900,000 | 1,150,000 | 925,000 | 750,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(550,000 | ) | (400,000 | ) | (825,000 | ) | (25,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
6,300,001 | 5,950,001 | 1,000,001 | 900,001 | ||||||||||||
|
|
(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.
92 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® Quality
Dividend Index Fund |
FlexShares®
Quality Dividend Defensive Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 36,130,232 | $ | 32,968,130 | $ | 8,686,945 | $ | 9,828,754 | ||||||||
Net realized gain (loss) |
74,523,974 | 155,267,183 | 35,613,228 | 61,643,521 | ||||||||||||
Net change in unrealized appreciation (depreciation) |
(248,957,784 | ) | 267,516,624 | (74,967,194 | ) | 63,438,797 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(138,303,578 | ) | 455,751,937 | (30,667,021 | ) | 134,911,072 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(36,901,147 | ) | (31,171,462 | ) | (9,019,363 | ) | (9,806,498 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(36,901,147 | ) | (31,171,462 | ) | (9,019,363 | ) | (9,806,498 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
512,092,494 | 441,818,714 | 100,491,773 | 116,279,178 | ||||||||||||
Cost of shares redeemed |
(456,702,830 | ) | (489,030,914 | ) | (163,419,797 | ) | (204,498,560 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
55,389,664 | (47,212,200 | ) | (62,928,024 | ) | (88,219,382 | ) | |||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(119,815,061 | ) | 377,368,275 | (102,614,408 | ) | 36,885,192 | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 1,642,544,880 | $ | 1,265,176,605 | $ | 448,057,986 | $ | 411,172,794 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 1,522,729,819 | $ | 1,642,544,880 | $ | 345,443,578 | $ | 448,057,986 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
28,150,001 | 29,150,001 | 8,000,001 | 9,650,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
9,150,000 | 8,100,000 | 1,850,000 | 2,250,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(8,175,000 | ) | (9,100,000 | ) | (3,025,000 | ) | (3,900,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
29,125,001 | 28,150,001 | 6,825,001 | 8,000,001 | ||||||||||||
|
|
(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 ANNUAL REPORT | 93 |
Statements of Changes in Net Assets (cont.)
FlexShares® Quality Dividend Dynamic Index Fund |
FlexShares®
International Quality Dividend Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 423,411 | $ | 404,524 | $ | 28,081,621 | $ | 22,006,728 | ||||||||
Net realized gain (loss) |
1,388,867 | 1,782,150 | (35,389,643 | ) | 48,065,144 | |||||||||||
Net change in unrealized appreciation (depreciation) |
(3,871,099 | ) | 4,139,378 | (140,731,898 | ) | 73,816,552 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(2,058,821 | ) | 6,326,052 | (148,039,920 | ) | 143,888,424 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(436,719 | ) | (369,573 | ) | (29,536,094 | ) | (20,693,535 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(436,719 | ) | (369,573 | ) | (29,536,094 | ) | (20,693,535 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
5,957,686 | 5,862,851 | 30,204,474 | 60,426,090 | ||||||||||||
Cost of shares redeemed |
(7,304,687 | ) | (3,095,145 | ) | (36,538,271 | ) | (21,090,657 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(1,347,001 | ) | 2,767,706 | (6,333,797 | ) | 39,335,433 | ||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(3,842,541 | ) | 8,724,185 | (183,909,811 | ) | 162,530,322 | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 21,905,004 | $ | 13,180,819 | $ | 616,006,903 | $ | 453,476,581 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 18,062,463 | $ | 21,905,004 | $ | 432,097,092 | $ | 616,006,903 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
350,001 | 300,001 | 23,900,001 | 22,500,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
100,000 | 100,000 | 1,200,000 | 2,300,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(125,000 | ) | (50,000 | ) | (1,700,000 | ) | (900,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
325,001 | 350,001 | 23,400,001 | 23,900,001 | ||||||||||||
|
|
(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.
94 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares®
International Quality Dividend Defensive Index Fund |
FlexShares®
International Quality Dividend Dynamic Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 2,830,675 | $ | 2,799,484 | $ | 4,143,080 | $ | 2,288,529 | ||||||||
Net realized gain (loss) |
(4,890,674 | ) | 5,928,070 | (6,336,149 | ) | 1,919,295 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(12,707,606 | ) | 8,195,139 | (19,667,897 | ) | 5,806,232 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(14,767,605 | ) | 16,922,693 | (21,860,966 | ) | 10,014,056 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(2,940,092 | ) | (2,683,528 | ) | (4,368,329 | ) | (1,876,931 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(2,940,092 | ) | (2,683,528 | ) | (4,368,329 | ) | (1,876,931 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
— | — | 14,075,676 | 45,461,250 | ||||||||||||
Cost of shares redeemed |
(13,205,553 | ) | (2,184,308 | ) | (2,032,721 | ) | — | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(13,205,553 | ) | (2,184,308 | ) | 12,042,955 | 45,461,250 | ||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(30,913,250 | ) | 12,054,857 | (14,186,340 | ) | 53,598,375 | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 71,458,591 | $ | 59,403,734 | $ | 75,974,697 | $ | 22,376,322 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 40,545,341 | $ | 71,458,591 | $ | 61,788,357 | $ | 75,974,697 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
3,000,001 | 3,100,001 | 2,500,001 | 1,000,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
— | — | 500,000 | 1,500,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(700,000 | ) | (100,000 | ) | (100,000 | ) | — | |||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
2,300,001 | 3,000,001 | 2,900,001 | 2,500,001 | ||||||||||||
|
|
(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.
FLEXSHARES ANNUAL REPORT | 95 |
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 |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 129,946,912 | $ | 58,365,045 | $ | 52,412,741 | $ | 26,012,110 | ||||||||
Net realized gain (loss) |
(61,202,821 | ) | 36,821,507 | (23,575,612 | ) | 12,575,174 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(171,934,382 | ) | (1,328,792 | ) | (102,258,738 | ) | 2,282,079 | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(103,190,291 | ) | 93,857,760 | (73,421,609 | ) | 40,869,363 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(131,367,411 | ) | (61,292,947 | ) | (53,319,431 | ) | (26,674,665 | ) | ||||||||
Tax return of capital |
(2,470,987 | ) | — | (769,089 | ) | — | ||||||||||
|
|
|||||||||||||||
Total distributions |
(133,838,398 | ) | (61,292,947 | ) | (54,088,520 | ) | (26,674,665 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
1,154,710,930 | 302,448,698 | 259,127,932 | 155,885,058 | ||||||||||||
Cost of shares redeemed |
(197,328,045 | ) | (326,919,699 | ) | (202,210,614 | ) | (51,695,657 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
957,382,885 | (24,471,001 | ) | 56,917,318 | 104,189,401 | |||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
720,354,196 | 8,093,812 | (70,592,811 | ) | 118,384,099 | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 1,437,584,419 | $ | 1,429,490,607 | $ | 714,479,309 | $ | 596,095,210 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 2,157,938,615 | $ | 1,437,584,419 | $ | 643,886,498 | $ | 714,479,309 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
54,504,000 | 55,554,000 | 25,500,001 | 21,800,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
45,050,000 | 11,450,000 | 9,600,000 | 5,550,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(8,050,000 | ) | (12,500,000 | ) | (7,850,000 | ) | (1,850,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
91,504,000 | 54,504,000 | 27,250,001 | 25,500,001 | ||||||||||||
|
|
(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.
96 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares®
Disciplined Duration MBS Index Fund |
FlexShares®
Credit-Scored US Corporate Bond Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 1,315,458 | $ | 381,266 | $ | 5,647,170 | $ | 4,833,547 | ||||||||
Net realized gain (loss) |
(4,182,658 | ) | 1,283,596 | (11,524,528 | ) | 3,014,355 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(11,405,968 | ) | (2,030,761 | ) | (31,515,973 | ) | (6,321,483 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(14,273,168 | ) | (365,899 | ) | (37,393,331 | ) | 1,526,419 | |||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(2,906,209 | ) | (2,676,548 | ) | (8,289,209 | ) | (7,983,218 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(2,906,209 | ) | (2,676,548 | ) | (8,289,209 | ) | (7,983,218 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
24,467,825 | 19,053,611 | 54,188,645 | 133,299,728 | ||||||||||||
Cost of shares redeemed |
(21,342,283 | ) | (4,788,861 | ) | (82,107,127 | ) | (13,500,359 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
3,125,542 | 14,264,750 | (27,918,482 | ) | 119,799,369 | |||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(14,053,835 | ) | 11,222,303 | (73,601,022 | ) | 113,342,570 | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 111,242,788 | $ | 100,020,485 | $ | 315,739,979 | $ | 202,397,409 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 97,188,953 | $ | 111,242,788 | $ | 242,138,957 | $ | 315,739,979 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
4,750,001 | 4,150,001 | 5,900,001 | 3,700,001 | ||||||||||||
Shares issued |
1,100,000 | 800,000 | 950,000 | 2,250,000 | ||||||||||||
Shares issued in-kind |
— | — | 150,000 | 200,000 | ||||||||||||
Shares redeemed |
(1,000,000 | ) | (200,000 | ) | (1,500,000 | ) | — | |||||||||
Shares redeemed in-kind |
— | — | (150,000 | ) | (250,000 | ) | ||||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
4,850,001 | 4,750,001 | 5,350,001 | 5,900,001 | ||||||||||||
|
|
(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 ANNUAL REPORT | 97 |
Statements of Changes in Net Assets (cont.)
FlexShares®
Credit-Scored US Long Corporate Bond Index Fund |
FlexShares® High
Yield Value-Scored Bond Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 1,897,648 | $ | 1,701,113 | $ | 54,264,979 | $ | 15,485,875 | ||||||||
Net realized gain (loss) |
(5,104,776 | ) | 1,029,123 | (84,823,660 | ) | 9,388,965 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(14,928,195 | ) | (16,024 | ) | (89,845,656 | ) | 1,852,410 | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(18,135,323 | ) | 2,714,212 | (120,404,337 | ) | 26,727,250 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(2,837,455 | ) | (3,440,094 | ) | (56,016,563 | ) | (14,752,663 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(2,837,455 | ) | (3,440,094 | ) | (56,016,563 | ) | (14,752,663 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
— | 27,084,379 | 746,832,545 | 415,533,944 | ||||||||||||
Cost of shares redeemed |
(4,384,065 | ) | (11,864,331 | ) | (257,649,977 | ) | (41,947,766 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(4,384,065 | ) | 15,220,048 | 489,182,568 | 373,586,178 | |||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(25,356,843 | ) | 14,494,166 | 312,761,668 | 385,560,765 | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 60,854,577 | $ | 46,360,411 | $ | 575,183,700 | $ | 189,622,935 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 35,497,734 | $ | 60,854,577 | $ | 887,945,368 | $ | 575,183,700 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
1,000,001 | 750,001 | 11,600,001 | 4,100,001 | ||||||||||||
Shares issued |
— | 450,000 | 14,850,000 | 7,200,000 | ||||||||||||
Shares issued in-kind |
— | — | 1,700,000 | 1,150,000 | ||||||||||||
Shares redeemed |
(100,000 | ) | (200,000 | ) | (5,500,000 | ) | (850,000 | ) | ||||||||
Shares redeemed in-kind |
— | — | (500,000 | ) | — | |||||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
900,001 | 1,000,001 | 22,150,001 | 11,600,001 | ||||||||||||
|
|
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
98 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® ESG & Climate High Yield Corporate Core Index Fund |
FlexShares® ESG & Climate Investment Grade Corporate Core Index Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
September 20, 2021* through October 31, 2021 |
Year
Ended October 31, 2022 |
September 20, 2021* through October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 1,006,867 | $ | 208,614 | $ | 1,023,293 | $ | 102,578 | ||||||||
Net realized gain (loss) |
(3,622,569 | ) | (16,194 | ) | (5,269,138 | ) | (68,270 | ) | ||||||||
Net change in unrealized appreciation (depreciation) |
171,352 | (409,765 | ) | (4,417,178 | ) | (682,569 | ) | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(2,444,350 | ) | (217,345 | ) | (8,663,023 | ) | (648,261 | ) | ||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(1,310,115 | ) | (1,093,741 | ) | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(1,310,115 | ) | — | (1,093,741 | ) | — | ||||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
20,983,032 | — | 6,485,716 | — | ||||||||||||
Cost of shares redeemed |
(46,563,361 | ) | — | (22,920,483 | ) | — | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(25,580,329 | ) | — | (16,434,767 | ) | — | ||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
(29,334,794 | ) | (217,345 | ) | (26,191,531 | ) | (648,261 | ) | ||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 49,766,635 | $ | 49,983,980 | (2),(3) | $ | 49,347,056 | $ | 49,995,317 | (2),(3) | ||||||
|
|
|||||||||||||||
End of Period |
$ | 20,431,841 | $ | 49,766,635 | $ | 23,155,525 | $ | 49,347,056 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
1,000,000 | 1,000,000 | (2) | 1,000,000 | 1,000,000 | (2) | ||||||||||
Shares issued |
500,000 | — | 150,000 | — | ||||||||||||
Shares issued in-kind |
— | — | — | — | ||||||||||||
Shares redeemed |
(800,000 | ) | — | (550,000 | ) | — | ||||||||||
Shares redeemed in-kind |
(200,000 | ) | — | — | — | |||||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
500,000 | 1,000,000 | 600,000 | 1,000,000 | ||||||||||||
|
|
* |
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 ANNUAL REPORT | 99 |
Statements of Changes in Net Assets (cont.)
FlexShares® Ready Access Variable Income Fund |
FlexShares® Core Select Bond Fund |
|||||||||||||||
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2022 |
Year
Ended October 31, 2021 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 8,594,946 | $ | 2,617,948 | $ | 3,278,852 | $ | 1,991,134 | ||||||||
Net realized gain (loss) |
(815,721 | ) | 1,261,361 | (14,903,388 | ) | 252,759 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(11,518,881 | ) | (2,362,864 | ) | (13,967,521 | ) | (1,848,559 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
(3,739,656 | ) | 1,516,445 | (25,592,057 | ) | 395,334 | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(7,907,561 | ) | (3,046,370 | ) | (3,352,156 | ) | (2,693,092 | ) | ||||||||
|
|
|||||||||||||||
Total distributions |
(7,907,561 | ) | (3,046,370 | ) | (3,352,156 | ) | (2,693,092 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
583,737,232 | 55,265,356 | 73,291,854 | 36,362,834 | ||||||||||||
Cost of shares redeemed |
(90,072,224 | ) | (148,597,576 | ) | (11,502,530 | ) | (16,671,414 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
493,665,008 | (93,332,220 | ) | 61,789,324 | 19,691,420 | |||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
482,017,791 | (94,862,145 | ) | 32,845,111 | 17,393,662 | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 374,339,139 | $ | 469,201,284 | $ | 126,516,968 | $ | 109,123,306 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 856,356,930 | $ | 374,339,139 | $ | 159,362,079 | $ | 126,516,968 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
4,925,001 | 6,150,001 | 4,825,001 | 4,075,001 | ||||||||||||
Shares issued |
7,800,000 | 725,000 | — | — | ||||||||||||
Shares issued in-kind |
— | — | 3,075,000 | 1,375,000 | ||||||||||||
Shares redeemed |
(1,200,000 | ) | (1,950,000 | ) | — | — | ||||||||||
Shares redeemed in-kind |
— | — | (475,000 | ) | (625,000 | ) | ||||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
11,525,001 | 4,925,001 | 7,425,001 | 4,825,001 | ||||||||||||
|
|
(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.
100 | FLEXSHARES ANNUAL REPORT |
Financial Highlights
FlexShares® US Quality Low Volatility Index Fund | ||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
For
the period 07/15/19* through 10/31/19 |
|||||||||||||
Net asset value, beginning of period |
$ | 54.60 | $ | 40.93 | $ | 40.44 | $ | 40.00 | ||||||||
|
|
|||||||||||||||
PER SHARE |
||||||||||||||||
Investment Operations |
||||||||||||||||
Net Investment Income |
0.82 | (a) | 0.57 | (a) | 0.64 | (a) | 0.17 | (a) | ||||||||
Net Realized and Unrealized Gain (Loss) |
(4.70 | ) | 13.69 | 0.38 | 0.35 | |||||||||||
|
|
|||||||||||||||
Total from Operations |
(3.88 | ) | 14.26 | 1.02 | 0.52 | |||||||||||
|
|
|||||||||||||||
Distributions |
||||||||||||||||
Net Investment Income |
(0.70 | ) | (0.59 | ) | (0.53 | ) | (0.08 | ) | ||||||||
|
|
|||||||||||||||
Total from Distributions |
(0.70 | ) | (0.59 | ) | (0.53 | ) | (0.08 | ) | ||||||||
|
|
|||||||||||||||
Net Asset Value, end of period |
$ | 50.02 | $ | 54.60 | $ | 40.93 | $ | 40.44 | ||||||||
|
|
|||||||||||||||
Total Return(b) |
||||||||||||||||
Net Asset Value(d) |
(7.12 | )% | 35.05 | % | 2.63 | % | 1.30 | % | ||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||
Ratios to Average Net Assets(c) |
| |||||||||||||||
Expenses |
0.23 | % | 0.23 | % | 0.23 | % | 0.23 | % | ||||||||
Expenses net of reimbursements |
0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | ||||||||
Net Investment Income Before Reimbursements |
1.58 | % | 1.17 | % | 1.55 | % | 1.45 | % | ||||||||
Net Investment Income Net of Reimbursements |
1.58 | % | 1.17 | % | 1.56 | % | 1.45 | % | ||||||||
Supplemental Data |
||||||||||||||||
Portfolio Turnover Rate(b)(e) |
48 | % | 43 | % | 47 | % | 9 | % | ||||||||
Net assets, end of period (thousands) |
$ | 162,569 | $ | 161,074 | $ | 110,524 | $ | 6,067 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 101 |
Financial Highlights (cont.)
FlexShares® Developed Markets
ex-US Quality Low Volatility Index Fund |
||||||||||||||||
Year ended 2022 |
Year ended 2021 |
Year ended 2020 |
For
the period 07/15/19* through 10/31/19 |
|||||||||||||
Net asset value, beginning of period |
$ | 27.92 | $ | 23.48 | $ | 25.60 | $ | 25.00 | ||||||||
|
|
|||||||||||||||
PER SHARE |
||||||||||||||||
Investment Operations |
||||||||||||||||
Net Investment Income |
0.66 | (a) | 0.73 | (a) | 0.64 | (a) | 0.16 | (a) | ||||||||
Net Realized and Unrealized Gain (Loss) |
(5.71 | ) | 4.43 | (2.22 | ) | 0.53 | ||||||||||
|
|
|||||||||||||||
Total from Operations |
(5.05 | ) | 5.16 | (1.58 | ) | 0.69 | ||||||||||
|
|
|||||||||||||||
Distributions |
||||||||||||||||
Net Investment Income |
(0.78 | ) | (0.72 | ) | (0.54 | ) | (0.09 | ) | ||||||||
|
|
|||||||||||||||
Total from Distributions |
(0.78 | ) | (0.72 | ) | (0.54 | ) | (0.09 | ) | ||||||||
|
|
|||||||||||||||
Net Asset Value, end of period |
$ | 22.09 | $ | 27.92 | $ | 23.48 | $ | 25.60 | ||||||||
|
|
|||||||||||||||
Total Return(b) |
||||||||||||||||
Net Asset Value(d) |
(18.36 | )% | 22.05 | % | (6.24 | )% | 2.76 | % | ||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||
Ratios to Average Net Assets(c) |
| |||||||||||||||
Expenses |
0.33 | % | 0.33 | % | 0.33 | % | 0.32 | % | ||||||||
Expenses net of reimbursements |
0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | ||||||||
Net Investment Income Before Reimbursements |
2.60 | % | 2.68 | % | 2.63 | % | 2.21 | % | ||||||||
Net Investment Income Net of Reimbursements |
2.60 | % | 2.68 | % | 2.64 | % | 2.21 | % | ||||||||
Supplemental Data |
||||||||||||||||
Portfolio Turnover Rate(b)(e) |
56 | % | 56 | % | 62 | % | 14 | % | ||||||||
Net assets, end of period (thousands) |
$ | 61,852 | $ | 75,371 | $ | 65,747 | $ | 5,120 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
102 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Emerging Markets
Quality Low Volatility Index Fund |
||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
For
the period 07/15/19* through 10/31/19 |
|||||||||||||
Net asset value, beginning of period |
$ | 26.41 | $ | 23.95 | $ | 24.94 | $ | 25.00 | ||||||||
|
|
|||||||||||||||
PER SHARE |
||||||||||||||||
Investment Operations |
||||||||||||||||
Net Investment Income |
0.67 | (a) | 0.69 | (a) | 0.56 | (a) | 0.23 | (a) | ||||||||
Net Realized and Unrealized Gain (Loss) |
(5.82 | ) | 2.22 | (0.91 | ) | (0.18 | ) | |||||||||
|
|
|||||||||||||||
Total from Operations |
(5.15 | ) | 2.91 | (0.35 | ) | 0.05 | ||||||||||
|
|
|||||||||||||||
Distributions |
||||||||||||||||
Net Investment Income |
(0.69 | ) | (0.45 | ) | (0.64 | ) | (0.11 | ) | ||||||||
Tax Return of Capital |
(0.04 | ) | — | — | — | |||||||||||
|
|
|||||||||||||||
Total from Distributions |
(0.73 | ) | (0.45 | ) | (0.64 | ) | (0.11 | ) | ||||||||
|
|
|||||||||||||||
Net Asset Value, end of period |
$ | 20.53 | $ | 26.41 | $ | 23.95 | $ | 24.94 | ||||||||
|
|
|||||||||||||||
Total Return(b) |
||||||||||||||||
Net Asset Value(d) |
(19.77 | )% | 12.09 | % | (1.41 | )% | 0.19 | % | ||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||
Ratios to Average Net Assets(c) |
| |||||||||||||||
Expenses |
0.41 | % | 0.41 | % | 0.41 | % | 0.40 | % | ||||||||
Expenses net of reimbursements |
0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | ||||||||
Net Investment Income Before Reimbursements |
2.75 | % | 2.57 | % | 2.38 | % | 3.18 | % | ||||||||
Net Investment Income Net of Reimbursements |
2.75 | % | 2.58 | % | 2.39 | % | 3.18 | % | ||||||||
Supplemental Data |
||||||||||||||||
Portfolio Turnover Rate(b)(e) |
53 | % | 54 | % | 81 | % | 12 | % | ||||||||
Net assets, end of period (thousands) |
$ | 8,214 | $ | 15,844 | $ | 9,578 | $ | 4,989 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 103 |
Financial Highlights (cont.)
FlexShares® Morningstar US Market Factor Tilt Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 178.97 | $ | 121.11 | $ | 119.52 | $ | 110.13 | $ | 107.50 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
2.39 | (a) | 2.08 | (a) | 2.10 | (a) | 1.95 | (a) | 2.02 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(27.93 | ) | 57.80 | 1.60 | 9.33 | 2.59 | ||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(25.54 | ) | 59.88 | 3.70 | 11.28 | 4.61 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(2.36 | ) | (2.02 | ) | (2.11 | ) | (1.89 | ) | (1.98 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(2.36 | ) | (2.02 | ) | (2.11 | ) | (1.89 | ) | (1.98 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 151.07 | $ | 178.97 | $ | 121.11 | $ | 119.52 | $ | 110.13 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(14.33 | )% | 49.68 | % | 3.28 | % | 10.41 | % | 4.22 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.26 | % | 0.26 | % | 0.26 | % | 0.26 | % | 0.25 | % | ||||||||||
Expenses net of reimbursements |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.47 | % | 1.28 | % | 1.78 | % | 1.72 | % | 1.77 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.47 | % | 1.29 | % | 1.79 | % | 1.72 | % | 1.77 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
14 | % | 24 | % | 26 | % | 28 | % | 15 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 1,397,408 | $ | 1,727,019 | $ | 1,174,786 | $ | 1,446,137 | $ | 1,387,665 |
See Accompanying Notes to the Financial Statements.
104 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 73.71 | $ | 54.24 | $ | 62.67 | $ | 59.76 | $ | 67.51 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.94 | (a) | 1.71 | (a) | 1.31 | (a) | 1.85 | (a) | 1.78 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(18.44 | ) | 19.27 | (7.88 | ) | 2.89 | (7.39 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(16.50 | ) | 20.98 | (6.57 | ) | 4.74 | (5.61 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(2.61 | ) | (1.51 | ) | (1.86 | ) | (1.83 | ) | (2.14 | ) | ||||||||||
Tax Return of Capital |
(0.12 | ) | — | — | — | — | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(2.73 | ) | (1.51 | ) | (1.86 | ) | (1.83 | ) | (2.14 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 54.48 | $ | 73.71 | $ | 54.24 | $ | 62.67 | $ | 59.76 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(22.83 | )% | 38.79 | % | (10.57 | )% | 8.13 | % | (8.61 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.39 | % | ||||||||||
Expenses net of reimbursements |
0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Net Investment Income Before Reimbursements |
3.02 | % | 2.42 | % | 2.28 | % | 3.09 | % | 2.65 | % | ||||||||||
Net Investment Income Net of Reimbursements |
3.02 | % | 2.42 | % | 2.28 | % | 3.09 | % | 2.65 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
27 | % | 29 | % | 21 | % | 25 | % | 34 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 446,754 | $ | 648,638 | $ | 499,016 | $ | 965,142 | $ | 968,096 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 105 |
Financial Highlights (cont.)
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 60.79 | $ | 48.05 | $ | 50.42 | $ | 47.92 | $ | 57.38 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.86 | (a) | 1.51 | (a) | 1.02 | (a) | 1.49 | (a) | 1.46 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(18.06 | ) | 12.40 | (1.97 | ) | 2.46 | (9.34 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(16.20 | ) | 13.91 | (0.95 | ) | 3.95 | (7.88 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(2.37 | ) | (1.17 | ) | (1.42 | ) | (1.45 | ) | (1.58 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(2.37 | ) | (1.17 | ) | (1.42 | ) | (1.45 | ) | (1.58 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 42.22 | $ | 60.79 | $ | 48.05 | $ | 50.42 | $ | 47.92 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(27.32 | )% | 28.95 | % | (1.86 | )% | 8.29 | % | (14.05 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.59 | % | ||||||||||
Expenses net of reimbursements |
0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||
Net Investment Income Before Reimbursements |
3.49 | % | 2.46 | % | 2.13 | % | 2.92 | % | 2.56 | % | ||||||||||
Net Investment Income Net of Reimbursements |
3.49 | % | 2.47 | % | 2.14 | % | 2.93 | % | 2.56 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
34 | % | 40 | % | 41 | % | 45 | % | 49 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 206,889 | $ | 334,372 | $ | 225,847 | $ | 413,414 | $ | 488,736 |
See Accompanying Notes to the Financial Statements.
106 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® US Quality Large Cap Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 50.25 | $ | 35.48 | $ | 34.69 | $ | 33.44 | $ | 31.83 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.61 | (a) | 0.50 | (a) | 0.62 | (a) | 0.68 | (a) | 0.54 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(7.11 | ) | 14.76 | 0.76 | 1.29 | 1.58 | ||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(6.50 | ) | 15.26 | 1.38 | 1.97 | 2.12 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.58 | ) | (0.49 | ) | (0.59 | ) | (0.72 | ) | (0.51 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.58 | ) | (0.49 | ) | (0.59 | ) | (0.72 | ) | (0.51 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 43.17 | $ | 50.25 | $ | 35.48 | $ | 34.69 | $ | 33.44 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(12.98 | )% | 43.21 | % | 4.13 | % | 6.04 | % | 6.63 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.30 | % | 0.33 | % | 0.33 | % | 0.33 | % | 0.33 | % | ||||||||||
Expenses net of reimbursements |
0.30 | % | 0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.31 | % | 1.11 | % | 1.77 | % | 2.04 | % | 1.56 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.31 | % | 1.11 | % | 1.77 | % | 2.05 | % | 1.57 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
22 | % | 30 | % | 48 | % | 69 | % | 94 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 127,350 | $ | 144,475 | $ | 71,842 | $ | 51,171 | $ | 61,859 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 107 |
Financial Highlights (cont.)
FlexShares® STOXX® US ESG Select Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 112.73 | $ | 79.16 | $ | 72.29 | $ | 64.33 | $ | 60.49 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.22 | (a) | 1.26 | (a) | 1.27 | (a) | 1.21 | (a) | 1.09 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(19.75 | ) | 33.50 | 6.81 | 7.83 | 3.84 | ||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(18.53 | ) | 34.76 | 8.08 | 9.04 | 4.93 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.24 | ) | (1.19 | ) | (1.21 | ) | (1.08 | ) | (1.09 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.24 | ) | (1.19 | ) | (1.21 | ) | (1.08 | ) | (1.09 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 92.96 | $ | 112.73 | $ | 79.16 | $ | 72.29 | $ | 64.33 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(16.51 | )% | 44.15 | % | 11.40 | % | 14.21 | % | 8.13 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.33 | % | 0.33 | % | 0.33 | % | 0.33 | % | 0.33 | % | ||||||||||
Expenses net of reimbursements |
0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.20 | % | 1.25 | % | 1.67 | % | 1.78 | % | 1.66 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.20 | % | 1.26 | % | 1.68 | % | 1.79 | % | 1.67 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
46 | % | 40 | % | 66 | % | 75 | % | 110 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 171,980 | $ | 191,643 | $ | 89,052 | $ | 56,024 | $ | 28,946 |
See Accompanying Notes to the Financial Statements.
108 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® STOXX® Global ESG Select Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 148.57 | $ | 106.02 | $ | 101.77 | $ | 91.61 | $ | 91.97 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
2.24 | (a) | 2.03 | (a) | 1.72 | (a) | 2.05 | (a) | 1.95 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(30.82 | ) | 42.38 | 4.26 | 10.12 | (0.61 | ) | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(28.58 | ) | 44.41 | 5.98 | 12.17 | 1.34 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(2.45 | ) | (1.86 | ) | (1.73 | ) | (2.01 | ) | (1.70 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(2.45 | ) | (1.86 | ) | (1.73 | ) | (2.01 | ) | (1.70 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 117.54 | $ | 148.57 | $ | 106.02 | $ | 101.77 | $ | 91.61 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(19.35 | )% | 42.10 | % | 6.03 | % | 13.49 | % | 1.38 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | ||||||||||
Expenses net of reimbursements |
0.42 | % | 0.42 | % | 0.42 | % | 0.42 | % | 0.42 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.69 | % | 1.50 | % | 1.66 | % | 2.15 | % | 2.03 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.69 | % | 1.51 | % | 1.66 | % | 2.16 | % | 2.04 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
54 | % | 48 | % | 58 | % | 66 | % | 78 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 146,925 | $ | 185,717 | $ | 111,323 | $ | 91,590 | $ | 73,284 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 109 |
Financial Highlights (cont.)
FlexShares® ESG &
Climate US Large Cap Core Index Fund |
||||||||
Year ended October 31, 2022 |
For
the period 09/20/21* through 10/31/21 |
|||||||
Net asset value, beginning of period |
$ | 53.39 | $ | 50.00 | ||||
|
|
|||||||
PER SHARE |
||||||||
Investment Operations |
||||||||
Net Investment Income |
0.70 | (a) | 0.06 | (a) | ||||
Net Realized and Unrealized Gain (Loss) |
(9.25 | ) | 3.33 | |||||
|
|
|||||||
Total from Operations |
(8.55 | ) | 3.39 | |||||
|
|
|||||||
Distributions |
||||||||
Net Investment Income |
(0.62 | ) | — | |||||
From Net Realized Gains |
(0.01 | ) | — | |||||
|
|
|||||||
Total from Distributions |
(0.63 | ) | — | |||||
|
|
|||||||
Net Asset Value, end of period |
$ | 44.21 | $ | 53.39 | ||||
|
|
|||||||
Total Return(b) |
||||||||
Net Asset Value(d) |
(16.09 | )% | 6.78 | % | ||||
RATIOS/SUPPLEMENT DATA |
||||||||
Ratios to Average Net Assets(c) |
| |||||||
Expenses |
0.10 | % | 0.09 | % | ||||
Expenses net of reimbursements |
0.09 | % | 0.09 | % | ||||
Net Investment Income Before Reimbursements |
1.53 | % | 0.96 | % | ||||
Net Investment Income Net of Reimbursements |
1.53 | % | 0.96 | % | ||||
Supplemental Data |
||||||||
Portfolio Turnover Rate(b)(e) |
18 | % | — | %(f) | ||||
Net assets, end of period (thousands) |
$ | 22,103 | $ | 2,669 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
110 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® ESG & Climate Developed Markets ex-US Core Index Fund |
||||||||
Year ended October 31, 2022 |
For
the period 09/20/21* through 10/31/21 |
|||||||
Net asset value, beginning of period |
$ | 51.19 | $ | 50.00 | ||||
|
|
|||||||
PER SHARE |
||||||||
Investment Operations |
||||||||
Net Investment Income |
1.44 | (a) | 0.16 | (a) | ||||
Net Realized and Unrealized Gain (Loss) |
(13.28 | ) | 1.03 | |||||
|
|
|||||||
Total from Operations |
(11.84 | ) | 1.19 | |||||
|
|
|||||||
Distributions |
||||||||
Net Investment Income |
(1.20 | ) | — | |||||
|
|
|||||||
Total from Distributions |
(1.20 | ) | — | |||||
|
|
|||||||
Net Asset Value, end of period |
$ | 38.15 | $ | 51.19 | ||||
|
|
|||||||
Total Return(b) |
||||||||
Net Asset Value(d) |
(23.36 | )% | 2.38 | % | ||||
RATIOS/SUPPLEMENT DATA |
||||||||
Ratios to Average Net Assets(c) |
| |||||||
Expenses |
0.13 | % | 0.12 | % | ||||
Expenses net of reimbursements |
0.12 | % | 0.12 | % | ||||
Net Investment Income Before Reimbursements |
3.35 | % | 2.72 | % | ||||
Net Investment Income Net of Reimbursements |
3.35 | % | 2.72 | % | ||||
Supplemental Data |
||||||||
Portfolio Turnover Rate(b)(e) |
33 | % | — | %(f) | ||||
Net assets, end of period (thousands) |
$ | 17,169 | $ | 5,119 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 111 |
Financial Highlights (cont.)
FlexShares® ESG & Climate Emerging Markets Core Index Fund |
||||
For the period 04/20/22* through 10/31/22 |
||||
Net asset value, beginning of period |
$ | 50.00 | ||
|
|
|||
PER SHARE |
||||
Investment Operations |
||||
Net Investment Income |
0.76 | (a) | ||
Net Realized and Unrealized Gain (Loss) |
(11.42 | ) | ||
|
|
|||
Total from Operations |
(10.66 | ) | ||
|
|
|||
Distributions |
||||
Net Investment Income |
(0.66 | ) | ||
|
|
|||
Total from Distributions |
(0.66 | ) | ||
|
|
|||
Net Asset Value, end of period |
$ | 38.68 | ||
|
|
|||
Total Return(b) |
||||
Net Asset Value(d) |
(21.47 | )% | ||
RATIOS/SUPPLEMENT DATA |
||||
Ratios to Average Net Assets(c) |
| |||
Expenses |
0.19 | % | ||
Expenses net of reimbursements |
0.18 | % | ||
Net Investment Income Before Reimbursements |
3.15 | % | ||
Net Investment Income Net of Reimbursements |
3.15 | % | ||
Supplemental Data |
||||
Portfolio Turnover Rate(b)(e) |
18 | % | ||
Net assets, end of period (thousands) |
$ | 3,868 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
112 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 38.66 | $ | 26.71 | $ | 31.40 | $ | 31.51 | $ | 31.59 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.88 | (a) | 1.44 | (a) | 0.89 | (a) | 1.08 | (a) | 0.91 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
2.76 | 11.72 | (4.65 | ) | (0.09 | ) | (0.13 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
4.64 | 13.16 | (3.76 | ) | 0.99 | 0.78 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.95 | ) | (1.21 | ) | (0.93 | ) | (1.10 | ) | (0.86 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.95 | ) | (1.21 | ) | (0.93 | ) | (1.10 | ) | (0.86 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 41.35 | $ | 38.66 | $ | 26.71 | $ | 31.40 | $ | 31.51 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
12.20 | % | 49.70 | % | (11.87 | )% | 3.16 | % | 2.33 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.46 | % | ||||||||||
Expenses net of reimbursements |
0.46 | % | 0.46 | % | 0.46 | % | 0.46 | % | 0.46 | % | ||||||||||
Net Investment Income Before Reimbursements |
4.48 | % | 3.95 | % | 3.03 | % | 3.40 | % | 2.72 | % | ||||||||||
Net Investment Income Net of Reimbursements |
4.48 | % | 3.95 | % | 3.04 | % | 3.41 | % | 2.72 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
32 | % | 28 | % | 29 | % | 24 | % | 30 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 6,834,852 | $ | 6,052,710 | $ | 2,924,726 | $ | 5,510,201 | $ | 5,435,783 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 113 |
Financial Highlights (cont.)
FlexShares® STOXX® Global Broad Infrastructure Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 57.73 | $ | 48.10 | $ | 52.56 | $ | 45.09 | $ | 47.85 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.35 | (a) | 1.38 | (a) | 1.25 | (a) | 1.35 | (a) | 1.36 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(9.27 | ) | 9.57 | (4.53 | ) | 7.34 | (2.71 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(7.92 | ) | 10.95 | (3.28 | ) | 8.69 | (1.35 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.49 | ) | (1.32 | ) | (1.18 | ) | (1.22 | ) | (1.41 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.49 | ) | (1.32 | ) | (1.18 | ) | (1.22 | ) | (1.41 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 48.32 | $ | 57.73 | $ | 48.10 | $ | 52.56 | $ | 45.09 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(13.92 | )% | 22.85 | % | (6.23 | )% | 19.52 | % | (2.90 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.47 | % | ||||||||||
Expenses net of reimbursements |
0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.51 | % | 2.45 | % | 2.51 | % | 2.73 | % | 2.88 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.51 | % | 2.45 | % | 2.52 | % | 2.74 | % | 2.89 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
16 | % | 13 | % | 13 | % | 12 | % | 13 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 2,500,518 | $ | 2,643,906 | $ | 1,856,596 | $ | 1,477,030 | $ | 773,363 |
See Accompanying Notes to the Financial Statements.
114 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Global Quality Real Estate Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 70.35 | $ | 50.88 | $ | 66.60 | $ | 57.96 | $ | 62.02 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.67 | (a) | 1.38 | (a) | 1.43 | (a) | 1.76 | (a) | 1.80 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(17.88 | ) | 19.13 | (14.62 | ) | 8.68 | (3.99 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(16.21 | ) | 20.51 | (13.19 | ) | 10.44 | (2.19 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.99 | ) | (1.04 | ) | (2.50 | ) | (1.80 | ) | (1.87 | ) | ||||||||||
Tax Return of Capital |
(0.03 | ) | — | (0.03 | ) | — | — | |||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(2.02 | ) | (1.04 | ) | (2.53 | ) | (1.80 | ) | (1.87 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 52.12 | $ | 70.35 | $ | 50.88 | $ | 66.60 | $ | 57.96 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(23.51 | )% | 40.58 | % | (20.29 | )% | 18.37 | % | (3.69 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.46 | % | 0.46 | % | 0.46 | % | 0.46 | % | 0.46 | % | ||||||||||
Expenses net of reimbursements |
0.45 | % | 0.45 | % | 0.45 | % | 0.45 | % | 0.45 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.63 | % | 2.16 | % | 2.53 | % | 2.80 | % | 2.92 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.63 | % | 2.17 | % | 2.54 | % | 2.81 | % | 2.92 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
54 | % | 52 | % | 56 | % | 53 | % | 61 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 328,381 | $ | 418,597 | $ | 264,574 | $ | 376,264 | $ | 275,332 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 115 |
Financial Highlights (cont.)
FlexShares® Real Assets Allocation Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 33.67 | $ | 25.72 | $ | 30.30 | $ | 26.45 | $ | 28.08 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.93 | (a) | 0.83 | (a) | 0.86 | (a) | 0.76 | (a) | 0.80 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(4.72 | ) | 7.78 | (4.58 | ) | 3.85 | (1.64 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(3.79 | ) | 8.61 | (3.72 | ) | 4.61 | (0.84 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.02 | ) | (0.66 | ) | (0.86 | ) | (0.76 | ) | (0.79 | ) | ||||||||||
From Net Realized Gains |
— | — | — | — | 0.00 | (g) | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.02 | ) | (0.66 | ) | (0.86 | ) | (0.76 | ) | (0.79 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 28.86 | $ | 33.67 | $ | 25.72 | $ | 30.30 | $ | 26.45 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(11.49 | )% | 33.66 | % | (12.45 | )% | 17.69 | % | (3.09 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.58 | %(h) | 0.58 | %(h) | 0.58 | %(h) | 0.58 | %(h) | 0.59 | %(h) | ||||||||||
Expenses net of reimbursements |
0.11 | %(h) | 0.12 | %(h) | 0.11 | %(h) | 0.11 | %(h) | 0.11 | %(h) | ||||||||||
Net Investment Income Before Reimbursements |
2.40 | % | 2.07 | % | 2.65 | % | 2.22 | % | 2.39 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.86 | % | 2.53 | % | 3.11 | % | 2.69 | % | 2.87 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
7 | % | 40 | % | 14 | % | 4 | % | 5 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 28,865 | $ | 30,300 | $ | 4,502 | $ | 11,361 | $ | 13,887 |
See Accompanying Notes to the Financial Statements.
116 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Quality Dividend Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 58.35 | $ | 43.40 | $ | 46.33 | $ | 44.53 | $ | 42.57 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.25 | (a) | 1.16 | (a) | 1.24 | (a) | 1.24 | (a) | 1.20 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(6.05 | ) | 14.89 | (2.67 | ) | 2.29 | 1.98 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(4.80 | ) | 16.05 | (1.43 | ) | 3.53 | 3.18 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.27 | ) | (1.10 | ) | (1.25 | ) | (1.19 | ) | (1.22 | ) | ||||||||||
From Net Realized Gains |
— | — | (0.25 | ) | (0.54 | ) | — | |||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.27 | ) | (1.10 | ) | (1.50 | ) | (1.73 | ) | (1.22 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 52.28 | $ | 58.35 | $ | 43.40 | $ | 46.33 | $ | 44.53 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(8.29 | )% | 37.27 | % | (2.98 | )% | 8.45 | % | 7.42 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % | 0.37 | % | ||||||||||
Expenses net of reimbursements |
0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.24 | % | 2.16 | % | 2.79 | % | 2.80 | % | 2.64 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.24 | % | 2.16 | % | 2.79 | % | 2.81 | % | 2.64 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
40 | % | 51 | % | 75 | % | 95 | % | 76 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 1,522,730 | $ | 1,642,545 | $ | 1,265,177 | $ | 1,707,344 | $ | 1,759,108 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 117 |
Financial Highlights (cont.)
FlexShares® Quality Dividend Defensive Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 56.01 | $ | 42.61 | $ | 46.25 | $ | 44.46 | $ | 42.04 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.16 | (a) | 1.09 | (a) | 1.21 | (a) | 1.22 | (a) | 1.21 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(5.35 | ) | 13.39 | (3.28 | ) | 3.35 | 2.45 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(4.19 | ) | 14.48 | (2.07 | ) | 4.57 | 3.66 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.21 | ) | (1.08 | ) | (1.21 | ) | (1.14 | ) | (1.24 | ) | ||||||||||
From Net Realized Gains |
— | — | (0.36 | ) | (1.64 | ) | — | |||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.21 | ) | (1.08 | ) | (1.57 | ) | (2.78 | ) | (1.24 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 50.61 | $ | 56.01 | $ | 42.61 | $ | 46.25 | $ | 44.46 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(7.53 | )% | 34.28 | % | (4.45 | )% | 11.40 | % | 8.69 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % | ||||||||||
Expenses net of reimbursements |
0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.16 | % | 2.10 | % | 2.77 | % | 2.76 | % | 2.70 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.16 | % | 2.11 | % | 2.77 | % | 2.76 | % | 2.71 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
47 | % | 57 | % | 76 | % | 91 | % | 94 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 345,444 | $ | 448,058 | $ | 411,173 | $ | 450,963 | $ | 320,091 |
See Accompanying Notes to the Financial Statements.
118 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Quality Dividend Dynamic Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 62.59 | $ | 43.94 | $ | 45.49 | $ | 42.20 | $ | 41.84 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.23 | (a) | 1.22 | (a) | 1.33 | (a) | 1.21 | (a) | 1.15 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(6.97 | ) | 18.57 | (1.21 | ) | 3.26 | 0.40 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(5.74 | ) | 19.79 | 0.12 | 4.47 | 1.55 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.27 | ) | (1.14 | ) | (1.67 | ) | (1.18 | ) | (1.19 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.27 | ) | (1.14 | ) | (1.67 | ) | (1.18 | ) | (1.19 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 55.58 | $ | 62.59 | $ | 43.94 | $ | 45.49 | $ | 42.20 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(9.23 | )% | 45.38 | % | 0.86 | % | 10.86 | % | 3.59 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % | ||||||||||
Expenses net of reimbursements |
0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.07 | % | 2.14 | % | 2.93 | % | 2.81 | % | 2.61 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.08 | % | 2.15 | % | 2.94 | % | 2.82 | % | 2.62 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
48 | % | 53 | % | 77 | % | 77 | % | 77 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 18,062 | $ | 21,905 | $ | 13,181 | $ | 52,308 | $ | 44,305 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 119 |
Financial Highlights (cont.)
FlexShares® International Quality Dividend Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 25.77 | $ | 20.15 | $ | 23.06 | $ | 22.37 | $ | 26.27 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.15 | (a) | 0.97 | (a) | 0.79 | (a) | 1.13 | (a) | 1.22 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(7.23 | ) | 5.55 | (2.86 | ) | 0.70 | (3.86 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(6.08 | ) | 6.52 | (2.07 | ) | 1.83 | (2.64 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.22 | ) | (0.90 | ) | (0.84 | ) | (1.14 | ) | (1.26 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.22 | ) | (0.90 | ) | (0.84 | ) | (1.14 | ) | (1.26 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 18.47 | $ | 25.77 | $ | 20.15 | $ | 23.06 | $ | 22.37 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(24.11 | )% | 32.42 | % | (8.94 | )% | 8.41 | % | (10.48 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.47 | % | ||||||||||
Expenses net of reimbursements |
0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | ||||||||||
Net Investment Income Before Reimbursements |
5.11 | % | 3.80 | % | 3.68 | % | 4.98 | % | 4.77 | % | ||||||||||
Net Investment Income Net of Reimbursements |
5.11 | % | 3.81 | % | 3.68 | % | 4.98 | % | 4.78 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
69 | % | 68 | % | 74 | % | 71 | % | 71 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 432,097 | $ | 616,007 | $ | 453,477 | $ | 774,685 | $ | 765,167 |
See Accompanying Notes to the Financial Statements.
120 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® International Quality Dividend Defensive Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 23.82 | $ | 19.16 | $ | 21.87 | $ | 21.39 | $ | 25.06 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.99 | (a) | 0.93 | (a) | 0.74 | (a) | 1.09 | (a) | 1.14 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(6.14 | ) | 4.62 | (2.70 | ) | 0.51 | (3.54 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(5.15 | ) | 5.55 | (1.96 | ) | 1.60 | (2.40 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.04 | ) | (0.89 | ) | (0.75 | ) | (1.12 | ) | (1.27 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.04 | ) | (0.89 | ) | (0.75 | ) | (1.12 | ) | (1.27 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 17.63 | $ | 23.82 | $ | 19.16 | $ | 21.87 | $ | 21.39 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(22.06 | )% | 29.03 | % | (8.92 | )% | 7.66 | % | (10.03 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||
Expenses net of reimbursements |
0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | ||||||||||
Net Investment Income Before Reimbursements |
4.62 | % | 3.91 | % | 3.65 | % | 5.02 | % | 4.68 | % | ||||||||||
Net Investment Income Net of Reimbursements |
4.62 | % | 3.92 | % | 3.66 | % | 5.03 | % | 4.68 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
65 | % | 65 | % | 75 | % | 63 | % | 69 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 40,545 | $ | 71,459 | $ | 59,404 | $ | 78,719 | $ | 87,703 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 121 |
Financial Highlights (cont.)
FlexShares® International Quality Dividend Dynamic Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 30.39 | $ | 22.38 | $ | 24.94 | $ | 23.51 | $ | 27.82 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.45 | (a) | 1.28 | (a) | 0.70 | (a) | 1.05 | (a) | 1.32 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(9.01 | ) | 7.63 | (2.45 | ) | 1.52 | (4.34 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(7.56 | ) | 8.91 | (1.75 | ) | 2.57 | (3.02 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.52 | ) | (0.90 | ) | (0.81 | ) | (1.14 | ) | (1.29 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.52 | ) | (0.90 | ) | (0.81 | ) | (1.14 | ) | (1.29 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 21.31 | $ | 30.39 | $ | 22.38 | $ | 24.94 | $ | 23.51 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(25.48 | )% | 39.87 | % | (6.99 | )% | 11.30 | % | (11.34 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||
Expenses net of reimbursements |
0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | ||||||||||
Net Investment Income Before Reimbursements |
5.49 | % | 4.24 | % | 2.90 | % | 4.36 | % | 4.83 | % | ||||||||||
Net Investment Income Net of Reimbursements |
5.49 | % | 4.25 | % | 2.91 | % | 4.37 | % | 4.83 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
74 | % | 72 | % | 85 | % | 88 | % | 75 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 61,788 | $ | 75,975 | $ | 22,376 | $ | 47,391 | $ | 63,481 |
See Accompanying Notes to the Financial Statements.
122 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 26.38 | $ | 25.73 | $ | 24.58 | $ | 23.81 | $ | 24.60 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.72 | (a) | 1.09 | (a) | 0.33 | (a) | 0.46 | (a) | 0.68 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(2.83 | ) | 0.68 | 1.09 | 0.79 | (0.78 | ) | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(1.11 | ) | 1.77 | 1.42 | 1.25 | (0.10 | ) | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.66 | ) | (1.12 | ) | (0.27 | ) | (0.48 | ) | (0.69 | ) | ||||||||||
Tax Return of Capital |
(0.03 | ) | — | — | — | — | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.69 | ) | (1.12 | ) | (0.27 | ) | (0.48 | ) | (0.69 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 23.58 | $ | 26.38 | $ | 25.73 | $ | 24.58 | $ | 23.81 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(4.44 | )% | 6.95 | % | 5.81 | % | 5.30 | % | (0.41 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.19 | % | 0.19 | % | 0.19 | % | 0.19 | % | 0.18 | % | ||||||||||
Expenses net of reimbursements |
0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | ||||||||||
Net Investment Income Before Reimbursements |
6.82 | % | 4.14 | % | 1.33 | % | 1.89 | % | 2.79 | % | ||||||||||
Net Investment Income Net of Reimbursements |
6.83 | % | 4.15 | % | 1.33 | % | 1.89 | % | 2.80 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
116 | % | 53 | % | 71 | % | 52 | % | 85 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 2,157,939 | $ | 1,437,584 | $ | 1,429,491 | $ | 1,178,722 | $ | 1,641,610 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 123 |
Financial Highlights (cont.)
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 28.02 | $ | 27.34 | $ | 25.50 | $ | 23.95 | $ | 25.06 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.83 | (a) | 1.16 | (a) | 0.36 | (a) | 0.44 | (a) | 0.71 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(4.35 | ) | 0.70 | 1.76 | 1.59 | (1.08 | ) | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(2.52 | ) | 1.86 | 2.12 | 2.03 | (0.37 | ) | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.84 | ) | (1.18 | ) | (0.28 | ) | (0.48 | ) | (0.74 | ) | ||||||||||
Tax Return of Capital |
(0.03 | ) | — | — | — | — | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.87 | ) | (1.18 | ) | (0.28 | ) | (0.48 | ) | (0.74 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 23.63 | $ | 28.02 | $ | 27.34 | $ | 25.50 | $ | 23.95 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(9.46 | )% | 6.88 | % | 8.39 | % | 8.53 | % | (1.51 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.19 | % | 0.19 | % | 0.19 | % | 0.19 | % | 0.18 | % | ||||||||||
Expenses net of reimbursements |
0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | ||||||||||
Net Investment Income Before Reimbursements |
6.98 | % | 4.17 | % | 1.35 | % | 1.77 | % | 2.88 | % | ||||||||||
Net Investment Income Net of Reimbursements |
6.98 | % | 4.17 | % | 1.35 | % | 1.78 | % | 2.88 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
80 | % | 46 | % | 66 | % | 41 | % | 65 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 643,886 | $ | 714,479 | $ | 596,095 | $ | 557,185 | $ | 904,027 |
See Accompanying Notes to the Financial Statements.
124 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Disciplined Duration MBS Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 23.42 | $ | 24.10 | $ | 23.55 | $ | 22.74 | $ | 23.86 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.26 | (a) | 0.09 | (a) | 0.37 | (a) | 0.61 | (a) | 0.49 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(3.07 | ) | (0.16 | ) | 0.85 | 1.03 | (0.88 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(2.81 | ) | (0.07 | ) | 1.22 | 1.64 | (0.39 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.57 | ) | (0.61 | ) | (0.67 | ) | (0.83 | ) | (0.73 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.57 | ) | (0.61 | ) | (0.67 | ) | (0.83 | ) | (0.73 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 20.04 | $ | 23.42 | $ | 24.10 | $ | 23.55 | $ | 22.74 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(12.16 | )% | (0.28 | )% | 5.19 | % | 7.36 | % | (1.65 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.21 | % | 0.21 | % | 0.21 | % | 0.21 | % | 0.21 | % | ||||||||||
Expenses net of reimbursements |
0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.19 | % | 0.35 | % | 1.54 | % | 2.64 | % | 2.09 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.19 | % | 0.36 | % | 1.54 | % | 2.65 | % | 2.10 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
222 | % | 476 | % | 175 | % | 61 | % | 160 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 97,189 | $ | 111,243 | $ | 100,020 | $ | 35,330 | $ | 71,628 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 125 |
Financial Highlights (cont.)
FlexShares® Credit-Scored US Corporate Bond Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 53.52 | $ | 54.70 | $ | 52.58 | $ | 48.59 | $ | 50.98 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.04 | (a) | 0.91 | (a) | 1.32 | (a) | 1.63 | (a) | 1.40 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(7.83 | ) | (0.51 | ) | 2.39 | 3.94 | (2.43 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(6.79 | ) | 0.40 | 3.71 | 5.57 | (1.03 | ) | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.06 | ) | (0.96 | ) | (1.37 | ) | (1.58 | ) | (1.36 | ) | ||||||||||
From Net Realized Gains |
(0.41 | ) | (0.62 | ) | (0.22 | ) | — | — | ||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.47 | ) | (1.58 | ) | (1.59 | ) | (1.58 | ) | (1.36 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 45.26 | $ | 53.52 | $ | 54.70 | $ | 52.58 | $ | 48.59 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(12.91 | )% | 0.70 | % | 7.20 | % | 11.66 | % | (2.05 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.23 | % | 0.23 | % | 0.23 | % | 0.23 | % | 0.23 | % | ||||||||||
Expenses net of reimbursements |
0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.11 | % | 1.68 | % | 2.46 | % | 3.20 | % | 2.83 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.11 | % | 1.69 | % | 2.46 | % | 3.21 | % | 2.84 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
66 | % | 53 | % | 62 | % | 65 | % | 76 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 242,139 | $ | 315,740 | $ | 202,397 | $ | 97,275 | $ | 60,736 |
See Accompanying Notes to the Financial Statements.
126 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 60.85 | $ | 61.81 | $ | 57.84 | $ | 48.04 | $ | 53.88 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.93 | (a) | 1.90 | (a) | 1.99 | (a) | 2.11 | (a) | 2.07 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(20.48 | ) | 1.22 | 3.90 | 9.89 | (5.87 | ) | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(18.55 | ) | 3.12 | 5.89 | 12.00 | (3.80 | ) | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.92 | ) | (1.88 | ) | (1.92 | ) | (2.20 | ) | (2.04 | ) | ||||||||||
From Net Realized Gains |
(0.94 | ) | (2.20 | ) | — | — | — | |||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(2.86 | ) | (4.08 | ) | (1.92 | ) | (2.20 | ) | (2.04 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 39.44 | $ | 60.85 | $ | 61.81 | $ | 57.84 | $ | 48.04 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(31.58 | )% | 5.14 | % | 10.34 | % | 25.57 | % | (7.24 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.23 | % | 0.23 | % | 0.23 | % | 0.23 | % | 0.23 | % | ||||||||||
Expenses net of reimbursements |
0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | ||||||||||
Net Investment Income Before Reimbursements |
3.86 | % | 3.13 | % | 3.27 | % | 4.06 | % | 4.05 | % | ||||||||||
Net Investment Income Net of Reimbursements |
3.86 | % | 3.14 | % | 3.28 | % | 4.07 | % | 4.06 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
58 | % | 88 | % | 74 | % | 44 | % | 93 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 35,498 | $ | 60,855 | $ | 46,360 | $ | 17,352 | $ | 26,424 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 127 |
Financial Highlights (cont.)
FlexShares® High Yield Value-Scored Bond Index Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
For the period |
||||||||||||||||
Net asset value, beginning of period |
$ | 49.58 | $ | 46.25 | $ | 47.85 | $ | 48.84 | $ | 50.00 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
2.98 | (a) | 2.67 | (a) | 3.12 | (a) | 2.67 | (a) | 1.68 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(9.24 | ) | 3.42 | (1.77 | ) | 0.78 | (1.60 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(6.26 | ) | 6.09 | 1.35 | 3.45 | 0.08 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(2.86 | ) | (2.76 | ) | (2.95 | ) | (3.57 | ) | (1.24 | ) | ||||||||||
From Net Realized Gains |
(0.37 | ) | — | — | — | — | ||||||||||||||
Tax Return of Capital |
— | — | — | (0.87 | ) | — | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(3.23 | ) | (2.76 | ) | (2.95 | ) | (4.44 | ) | (1.24 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 40.09 | $ | 49.58 | $ | 46.25 | $ | 47.85 | $ | 48.84 | ||||||||||
|
|
|||||||||||||||||||
Total Return(b) |
||||||||||||||||||||
Net Asset Value(d) |
(13.06 | )% | 13.38 | % | 3.07 | % | 7.48 | % | 0.13 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets(c) |
| |||||||||||||||||||
Expenses |
0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % | ||||||||||
Expenses net of reimbursements |
0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | ||||||||||
Net Investment Income Before Reimbursements |
6.81 | % | 5.40 | % | 6.78 | % | 5.56 | % | 11.56 | % | ||||||||||
Net Investment Income Net of Reimbursements |
6.81 | % | 5.40 | % | 6.78 | % | 5.57 | % | 11.57 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(b)(e) |
146 | % | 128 | % | 95 | % | 44 | % | 18 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 887,945 | $ | 575,184 | $ | 189,623 | $ | 100,480 | $ | 48,845 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
128 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® ESG & Climate High Yield Corporate Core Index Fund |
||||||||
Year ended October 31, 2022 |
For
the period 09/20/21* through 10/31/21 |
|||||||
Net asset value, beginning of period |
$ | 49.77 | $ | 50.00 | ||||
|
|
|||||||
PER SHARE |
||||||||
Investment Operations |
||||||||
Net Investment Income |
2.04 | (a) | 0.21 | (a) | ||||
Net Realized and Unrealized Gain (Loss) |
(8.09 | ) | (0.44 | ) | ||||
|
|
|||||||
Total from Operations |
(6.05 | ) | (0.23 | ) | ||||
|
|
|||||||
Distributions |
||||||||
Net Investment Income |
(2.86 | ) | — | |||||
|
|
|||||||
Total from Distributions |
(2.86 | ) | — | |||||
|
|
|||||||
Net Asset Value, end of period |
$ | 40.86 | $ | 49.77 | ||||
|
|
|||||||
Total Return(b) |
||||||||
Net Asset Value(d) |
(12.47 | )% | (0.50 | )% | ||||
RATIOS/SUPPLEMENT DATA |
||||||||
Ratios to Average Net Assets(c) |
| |||||||
Expenses |
0.24 | % | 0.23 | % | ||||
Expenses net of reimbursements |
0.23 | % | 0.23 | % | ||||
Net Investment Income Before Reimbursements |
4.37 | % | 3.64 | % | ||||
Net Investment Income Net of Reimbursements |
4.37 | % | 3.64 | % | ||||
Supplemental Data |
||||||||
Portfolio Turnover Rate(b)(e) |
119 | % | 8 | % | ||||
Net assets, end of period (thousands) |
$ | 20,432 | $ | 49,767 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 129 |
Financial Highlights (cont.)
FlexShares® ESG & Climate Investment Grade Corporate Core Index Fund |
||||||||
Year ended October 31, 2022 |
For
the period 09/20/21* through 10/31/21 |
|||||||
Net asset value, beginning of period |
$ | 49.35 | $ | 50.00 | ||||
|
|
|||||||
PER SHARE |
||||||||
Investment Operations |
||||||||
Net Investment Income |
1.07 | (a) | 0.10 | (a) | ||||
Net Realized and Unrealized Gain (Loss) |
(10.68 | ) | (0.75 | ) | ||||
|
|
|||||||
Total from Operations |
(9.61 | ) | (0.65 | ) | ||||
|
|
|||||||
Distributions |
||||||||
Net Investment Income |
(1.15 | ) | — | |||||
|
|
|||||||
Total from Distributions |
(1.15 | ) | — | |||||
|
|
|||||||
Net Asset Value, end of period |
$ | 38.59 | $ | 49.35 | ||||
|
|
|||||||
Total Return(b) |
||||||||
Net Asset Value(d) |
(19.73 | )% | (1.32 | )% | ||||
RATIOS/SUPPLEMENT DATA |
||||||||
Ratios to Average Net Assets(c) |
| |||||||
Expenses |
0.13 | % | 0.12 | % | ||||
Expenses net of reimbursements |
0.12 | % | 0.12 | % | ||||
Net Investment Income Before Reimbursements |
2.41 | % | 1.81 | % | ||||
Net Investment Income Net of Reimbursements |
2.41 | % | 1.81 | % | ||||
Supplemental Data |
||||||||
Portfolio Turnover Rate(b)(e) |
66 | % | 8 | % | ||||
Net assets, end of period (thousands) |
$ | 23,156 | $ | 49,347 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
130 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Ready Access Variable Income Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 76.01 | $ | 76.29 | $ | 75.89 | $ | 75.48 | $ | 75.61 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.07 | (a) | 0.48 | (a) | 1.07 | (a) | 1.98 | (a) | 1.58 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(1.80 | ) | (0.22 | ) | 0.57 | 0.41 | (0.24 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(0.73 | ) | 0.26 | 1.64 | 2.39 | 1.34 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.78 | ) | (0.52 | ) | (1.23 | ) | (1.98 | ) | (1.47 | ) | ||||||||||
From Net Realized Gains |
(0.20 | ) | (0.02 | ) | (0.01 | ) | — | — | ||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.98 | ) | (0.54 | ) | (1.24 | ) | (1.98 | ) | (1.47 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 74.30 | $ | 76.01 | $ | 76.29 | $ | 75.89 | $ | 75.48 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(0.94 | )% | 0.34 | % | 2.18 | % | 3.21 | % | 1.80 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.26 | % | 0.26 | % | 0.26 | % | 0.26 | % | 0.26 | % | ||||||||||
Expenses net of reimbursements |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.43 | % | 0.62 | % | 1.41 | % | 2.61 | % | 2.09 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.43 | % | 0.63 | % | 1.41 | % | 2.62 | % | 2.10 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
50 | % | 84 | % | 79 | % | 73 | % | 131 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 856,357 | $ | 374,339 | $ | 469,201 | $ | 275,097 | $ | 211,350 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 131 |
Financial Highlights (cont.)
FlexShares® Core Select Bond Fund | ||||||||||||||||||||
Year ended October 31, 2022 |
Year ended October 31, 2021 |
Year ended October 31, 2020 |
Year ended October 31, 2019 |
Year ended October 31, 2018 |
||||||||||||||||
Net asset value, beginning of period |
$ | 26.22 | $ | 26.78 | $ | 25.66 | $ | 23.74 | $ | 25.08 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.53 | (a) | 0.46 | (a) | 0.51 | (a) | 0.73 | (a) | 0.63 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(4.75 | ) | (0.39 | ) | 1.19 | 1.93 | (1.31 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(4.22 | ) | 0.07 | 1.70 | 2.66 | (0.68 | ) | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.54 | ) | (0.52 | ) | (0.58 | ) | (0.74 | ) | (0.66 | ) | ||||||||||
From Net Realized Gains |
— | (0.11 | ) | — | — | — | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.54 | ) | (0.63 | ) | (0.58 | ) | (0.74 | ) | (0.66 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 21.46 | $ | 26.22 | $ | 26.78 | $ | 25.66 | $ | 23.74 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(16.27 | )% | 0.26 | % | 6.69 | % | 11.38 | % | (2.73 | )% | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.36 | %(h) | 0.36 | %(h) | 0.36 | %(h) | 0.36 | %(h) | 0.36 | %(h) | ||||||||||
Expenses net of reimbursements |
0.22 | %(h) | 0.20 | %(h) | 0.20 | %(h) | 0.19 | %(h) | 0.16 | %(h) | ||||||||||
Net Investment Income Before Reimbursements |
2.10 | % | 1.56 | % | 1.76 | % | 2.80 | % | 2.41 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.24 | % | 1.72 | % | 1.93 | % | 2.97 | % | 2.61 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(e) |
121 | % | 50 | % | 91 | % | 135 | % | 53 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 159,362 | $ | 126,517 | $ | 109,123 | $ | 26,299 | $ | 38,583 |
See Accompanying Notes to the Financial Statements.
132 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
(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) |
In-kind transactions are not included in portfolio turnover calculations. |
(f) |
Less than 0.5%. |
(g) |
Per share amount is less than $0.005. |
(h) |
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. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 133 |
FlexShares® US Quality Low Volatility Index Fund
October 31, 2022
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.6% | ||||||||
Air Freight & Logistics – 1.7% | ||||||||
CH Robinson Worldwide, Inc.(a) |
7,930 | $ | 774,920 | |||||
Expeditors International of Washington, Inc. |
13,000 | 1,272,050 | ||||||
United Parcel Service, Inc., Class B |
3,770 | 632,493 | ||||||
2,679,463 | ||||||||
Auto Components – 0.0%(b) | ||||||||
Gentex Corp. |
1,560 | 41,324 | ||||||
Automobiles – 0.8% | ||||||||
Tesla, Inc.* |
5,460 | 1,242,368 | ||||||
Banks – 3.3% | ||||||||
CVB Financial Corp.(a) |
32,370 | 929,666 | ||||||
First Republic Bank |
650 | 78,065 | ||||||
PNC Financial Services Group, Inc. (The) |
6,760 | 1,093,971 | ||||||
Popular, Inc.(a) |
15,990 | 1,130,813 | ||||||
Prosperity Bancshares, Inc.(a) |
17,550 | 1,256,053 | ||||||
Umpqua Holdings Corp. |
46,150 | 917,462 | ||||||
5,406,030 | ||||||||
Beverages – 2.2% | ||||||||
PepsiCo, Inc. |
19,630 | 3,564,415 | ||||||
Biotechnology – 6.3% | ||||||||
AbbVie, Inc. |
8,190 | 1,199,016 | ||||||
Amgen, Inc. |
11,440 | 3,092,804 | ||||||
Biogen, Inc.* |
6,760 | 1,916,054 | ||||||
Gilead Sciences, Inc. |
26,780 | 2,101,159 | ||||||
Regeneron Pharmaceuticals, Inc.* |
2,340 | 1,752,075 | ||||||
United Therapeutics Corp.* |
910 | 209,782 | ||||||
10,270,890 | ||||||||
Capital Markets – 1.2% | ||||||||
CME Group, Inc. |
5,850 | 1,013,805 | ||||||
Nasdaq, Inc. |
14,690 | 914,306 | ||||||
1,928,111 |
Investments | Shares | Value | ||||||
Chemicals – 1.9% | ||||||||
Ashland, Inc. |
8,320 | $ | 872,935 | |||||
Corteva, Inc. |
17,160 | 1,121,234 | ||||||
Ecolab, Inc. |
6,110 | 959,698 | ||||||
Linde plc(a) |
520 | 154,622 | ||||||
3,108,489 | ||||||||
Commercial Services & Supplies – 2.9% | ||||||||
Republic Services, Inc. |
7,020 | 930,992 | ||||||
Tetra Tech, Inc. |
9,360 | 1,322,381 | ||||||
Waste Connections, Inc. |
7,280 | 960,305 | ||||||
Waste Management, Inc. |
9,360 | 1,482,343 | ||||||
4,696,021 | ||||||||
Containers & Packaging – 0.8% | ||||||||
International Paper Co. |
16,770 | 563,640 | ||||||
Packaging Corp. of America |
6,500 | 781,365 | ||||||
1,345,005 | ||||||||
Distributors – 0.2% | ||||||||
Genuine Parts Co. |
2,080 | 369,949 | ||||||
Diversified Consumer Services – 0.7% | ||||||||
Service Corp. International(a) |
20,020 | 1,213,412 | ||||||
Diversified Financial Services – 0.5% | ||||||||
Berkshire Hathaway, Inc., Class B* |
2,730 | 805,596 | ||||||
Diversified Telecommunication Services – 1.4% | ||||||||
AT&T, Inc. |
33,020 | 601,954 | ||||||
Verizon Communications, Inc. |
45,110 | 1,685,761 | ||||||
2,287,715 | ||||||||
Electric Utilities – 3.2% | ||||||||
American Electric Power Co., Inc. |
10,400 | 914,368 | ||||||
Duke Energy Corp. |
10,920 | 1,017,526 | ||||||
NextEra Energy, Inc. |
19,890 | 1,541,475 | ||||||
PNM Resources, Inc. |
18,590 | 863,877 | ||||||
Xcel Energy, Inc. |
13,520 | 880,287 | ||||||
5,217,533 |
See Accompanying Notes to the Financial Statements.
134 | FLEXSHARES ANNUAL REPORT |
FlexShares® US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.3% | ||||||||
American Tower Corp. |
1,430 | $ | 296,282 | |||||
Crown Castle, Inc. |
9,360 | 1,247,313 | ||||||
Digital Realty Trust, Inc.(a) |
7,800 | 781,950 | ||||||
Equinix, Inc. |
1,620 | 917,633 | ||||||
Essex Property Trust, Inc. |
3,120 | 693,389 | ||||||
Public Storage |
4,420 | 1,369,095 | ||||||
5,305,662 | ||||||||
Food & Staples Retailing – 2.7% | ||||||||
Albertsons Cos., Inc., Class A |
31,460 | 645,245 | ||||||
Costco Wholesale Corp. |
4,550 | 2,281,825 | ||||||
Kroger Co. (The) |
29,250 | 1,383,232 | ||||||
Walmart, Inc. |
520 | 74,012 | ||||||
4,384,314 | ||||||||
Food Products – 1.7% | ||||||||
Flowers Foods, Inc. |
32,240 | 925,610 | ||||||
Hershey Co. (The) |
4,420 | 1,055,363 | ||||||
Hormel Foods Corp.(a) |
18,330 | 851,429 | ||||||
2,832,402 | ||||||||
Gas Utilities – 0.1% | ||||||||
Spire, Inc.(a) |
3,380 | 235,958 | ||||||
Health Care Equipment & Supplies – 0.6% | ||||||||
Abbott Laboratories |
9,100 | 900,354 | ||||||
Health Care Providers & Services – 1.0% | ||||||||
Chemed Corp. |
2,600 | 1,213,862 | ||||||
UnitedHealth Group, Inc. |
780 | 433,017 | ||||||
1,646,879 | ||||||||
Hotels, Restaurants & Leisure – 0.2% | ||||||||
Booking Holdings, Inc.* |
198 | 370,157 | ||||||
Household Durables – 0.4% | ||||||||
Newell Brands, Inc.(a) |
43,160 | 596,040 | ||||||
Household Products – 2.9% | ||||||||
Clorox Co. (The)(a) |
9,100 | 1,328,964 | ||||||
Procter & Gamble Co. (The) |
25,090 | 3,378,870 | ||||||
4,707,834 |
Investments | Shares | Value | ||||||
Insurance – 8.7% | ||||||||
Allstate Corp. (The) |
4,680 | $ | 590,850 | |||||
American Financial Group, Inc. |
5,850 | 848,894 | ||||||
Aon plc, Class A |
3,770 | 1,061,217 | ||||||
Assurant, Inc. |
7,930 | 1,077,370 | ||||||
Chubb Ltd. |
9,100 | 1,955,499 | ||||||
Everest Re Group Ltd. |
3,250 | 1,048,645 | ||||||
Hanover Insurance Group, Inc. (The) |
9,880 | 1,447,321 | ||||||
Markel Corp.* |
743 | 896,132 | ||||||
Progressive Corp. (The) |
9,360 | 1,201,824 | ||||||
RenaissanceRe Holdings Ltd. |
6,370 | 985,312 | ||||||
Selective Insurance Group, Inc.(a) |
390 | 38,251 | ||||||
Travelers Cos., Inc. (The) |
8,580 | 1,582,667 | ||||||
W R Berkley Corp. |
13,130 | 976,609 | ||||||
Willis Towers Watson plc |
2,340 | 510,612 | ||||||
14,221,203 | ||||||||
Interactive Media & Services – 1.1% | ||||||||
Alphabet, Inc., Class A* |
10,530 | 995,190 | ||||||
Alphabet, Inc., Class C* |
8,840 | 836,795 | ||||||
1,831,985 | ||||||||
IT Services – 7.3% | ||||||||
Akamai Technologies, Inc.* |
4,420 | 390,418 | ||||||
Amdocs Ltd. |
15,080 | 1,301,555 | ||||||
Automatic Data Processing, Inc. |
6,240 | 1,508,208 | ||||||
International Business Machines Corp. |
19,240 | 2,660,699 | ||||||
Jack Henry & Associates, Inc. |
6,760 | 1,345,646 | ||||||
Mastercard, Inc., Class A |
2,470 | 810,605 | ||||||
Visa, Inc., Class A(a) |
18,330 | 3,797,243 | ||||||
11,814,374 | ||||||||
Life Sciences Tools & Services – 0.8% | ||||||||
QIAGEN NV* |
28,990 | 1,262,804 | ||||||
Media – 0.9% | ||||||||
Cable One, Inc. |
600 | 515,658 | ||||||
Charter Communications, Inc., Class A* |
2,600 | 955,812 | ||||||
1,471,470 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 135 |
FlexShares® US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – 1.1% | ||||||||
Newmont Corp. |
23,270 | $ | 984,786 | |||||
Royal Gold, Inc.(a) |
9,230 | 876,481 | ||||||
1,861,267 | ||||||||
Multiline Retail – 1.4% | ||||||||
Dollar General Corp. |
4,420 | 1,127,321 | ||||||
Target Corp. |
7,150 | 1,174,388 | ||||||
2,301,709 | ||||||||
Multi-Utilities – 2.4% | ||||||||
Ameren Corp. |
5,720 | 466,294 | ||||||
CMS Energy Corp. |
19,500 | 1,112,475 | ||||||
Consolidated Edison, Inc. |
10,140 | 891,914 | ||||||
Dominion Energy, Inc. |
1,560 | 109,153 | ||||||
WEC Energy Group, Inc. |
13,650 | 1,246,655 | ||||||
3,826,491 | ||||||||
Oil, Gas & Consumable Fuels – 0.3% | ||||||||
Coterra Energy, Inc.(a) |
4,810 | 149,735 | ||||||
Exxon Mobil Corp. |
390 | 43,216 | ||||||
Kinder Morgan, Inc. |
19,110 | 346,273 | ||||||
539,224 | ||||||||
Pharmaceuticals – 11.8% | ||||||||
Bristol-Myers Squibb Co. |
11,310 | 876,186 | ||||||
Eli Lilly & Co. |
16,640 | 6,025,178 | ||||||
Johnson & Johnson |
46,150 | 8,028,715 | ||||||
Merck & Co., Inc. |
41,990 | 4,249,388 | ||||||
Zoetis, Inc. |
260 | 39,203 | ||||||
19,218,670 | ||||||||
Professional Services – 1.7% | ||||||||
CACI International, Inc., Class A* |
3,120 | 948,573 | ||||||
FTI Consulting, Inc.* (a) |
5,200 | 809,276 | ||||||
Verisk Analytics, Inc. |
5,590 | 1,022,020 | ||||||
2,779,869 | ||||||||
Road & Rail – 2.2% | ||||||||
JB Hunt Transport Services, Inc. |
4,940 | 845,086 | ||||||
Landstar System, Inc.(a) |
8,580 | 1,340,367 |
Investments | Shares | Value | ||||||
Road & Rail – (continued) | ||||||||
Old Dominion Freight Line, Inc.(a) |
4,810 | $ | 1,320,826 | |||||
3,506,279 | ||||||||
Semiconductors & Semiconductor Equipment – 0.1% | ||||||||
NVIDIA Corp. |
910 | 122,823 | ||||||
Software – 8.7% | ||||||||
Check Point Software Technologies Ltd.* |
11,050 | 1,427,991 | ||||||
Microsoft Corp. |
48,490 | 11,255,984 | ||||||
Roper Technologies, Inc. |
3,250 | 1,347,255 | ||||||
VMware, Inc., Class A |
260 | 29,258 | ||||||
14,060,488 | ||||||||
Specialty Retail – 3.9% | ||||||||
AutoZone, Inc.* |
130 | 329,274 | ||||||
Home Depot, Inc. (The) |
14,300 | 4,234,659 | ||||||
O’Reilly Automotive, Inc.* |
2,022 | 1,692,758 | ||||||
6,256,691 | ||||||||
Technology Hardware, Storage & Peripherals – 5.5% | ||||||||
Apple, Inc. |
58,370 | 8,950,456 | ||||||
Tobacco – 0.9% | ||||||||
Altria Group, Inc. |
31,460 | 1,455,654 | ||||||
Water Utilities – 0.8% | ||||||||
American Water Works Co., Inc. |
8,970 | 1,303,700 | ||||||
Total
Common Stocks (Cost $150,814,845) |
|
161,941,078 | ||||||
Principal Amount |
||||||||
SECURITIES LENDING REINVESTMENTS(c) – 0.7% | ||||||||
REPURCHASE AGREEMENTS – 0.7% | ||||||||
CF
Secured LLC, 3.00%, dated 10/31/2022, due 11/1/2022, repurchase price
$1,157,007, collateralized by various U.S. Treasury Securities, ranging
from 0.00% – 7.63%, maturing 11/15/2022 – 8/15/2052; total market
value $1,173,764 |
$ | 1,156,911 | 1,156,911 |
See Accompanying Notes to the Financial Statements.
136 | FLEXSHARES ANNUAL REPORT |
FlexShares® US Quality Low Volatility Index Fund (cont.)
Investments | Principal Amount |
Value | ||||||
SHORT-TERM INVESTMENTS – 0.0%(b) | ||||||||
U.S. TREASURY OBLIGATIONS – 0.0%(b) | ||||||||
U.S. Treasury Bills 2.54%, 11/25/2022(d) (Cost $34,941) |
$ | 35,000 | $ | 34,924 | ||||
Total Investments – 100.3% (Cost $152,006,697) |
|
163,132,913 | ||||||
Liabilities in excess of other assets – (0.3%) |
|
(564,390 | ) | |||||
NET ASSETS – 100.0% |
|
$ | 162,568,523 |
* |
Non-income producing security. |
(a) |
The security or a portion of this security is on loan at October 31, 2022. The total value of securities on loan at October 31, 2022 was $14,183,739, collateralized in the form of cash with a value of $1,156,911 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments and $13,361,701 of collateral in the form of U.S. Government |
Treasury Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from November 15, 2022 – May 15, 2052; a total value of $14,518,612. |
(b) |
Represents less than 0.05% of net assets. |
(c) |
The security was purchased with cash collateral held from securities on loan at October 31, 2022. The total value of securities purchased was $1,156,911. |
(d) |
The rate shown was the current yield as of October 31, 2022. |
Percentages shown are based on Net Assets.
As of October 31, 2022, 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 |
$ | 19,192,205 | ||
Aggregate gross unrealized depreciation |
(8,215,781 | ) | ||
Net unrealized appreciation |
$ | 10,976,424 | ||
Federal income tax cost |
$ | 152,163,286 |
Futures Contracts
FlexShares® US Quality Low Volatility Index Fund had the following open futures contracts as of October 31, 2022:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Appreciation/ (Depreciation)* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500 E-Mini Index |
2 | 12/16/2022 | USD | $ | 388,300 | $ | (1,033 | ) | ||||||||||||
S&P 500 Micro E-Mini Index |
10 | 12/16/2022 | USD | 194,150 | 7,830 | |||||||||||||||
$ | 6,797 |
* |
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
Security Type | % of Net Assets | |||
Common Stocks |
99.6 | % | ||
Securities Lending Reinvestments |
0.7 | |||
Short-Term Investments |
0.0 | † | ||
Others(1) |
(0.3 | ) | ||
100.0 | % |
† |
Amount represents less than 0.05%. |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 137 |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund
October 31, 2022
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.1% | ||||||||
Aerospace & Defense – 1.1% | ||||||||
BAE Systems plc |
31,416 | $ | 294,575 | |||||
Singapore Technologies Engineering Ltd. |
176,400 | 411,363 | ||||||
705,938 | ||||||||
Air Freight & Logistics – 0.9% | ||||||||
SG Holdings Co. Ltd. |
22,400 | 297,190 | ||||||
Yamato Holdings Co. Ltd. |
16,800 | 249,115 | ||||||
546,305 | ||||||||
Auto Components – 0.2% | ||||||||
Bridgestone Corp. |
2,800 | 101,010 | ||||||
Automobiles – 0.7% | ||||||||
Ferrari NV |
1,316 | 259,484 | ||||||
Toyota Motor Corp. |
14,000 | 193,985 | ||||||
453,469 | ||||||||
Banks – 11.5% | ||||||||
Bank Hapoalim BM |
54,488 | 527,928 | ||||||
Bank Leumi Le-Israel BM |
54,068 | 518,481 | ||||||
Bankinter SA(a) |
52,556 | 317,688 | ||||||
BOC Hong Kong Holdings Ltd. |
154,000 | 478,684 | ||||||
Chiba Bank Ltd. (The)(a) |
47,600 | 260,361 | ||||||
DBS Group Holdings Ltd. |
30,800 | 744,371 | ||||||
Hang Seng Bank Ltd. |
16,800 | 236,489 | ||||||
HSBC Holdings plc |
21,364 | 110,024 | ||||||
Mitsubishi UFJ Financial Group, Inc. |
58,800 | 276,722 | ||||||
Mizrahi Tefahot Bank Ltd. |
6,748 | 256,345 | ||||||
Mizuho Financial Group, Inc. |
39,200 | 423,556 | ||||||
Oversea-Chinese Banking Corp. Ltd. |
58,800 | 504,024 | ||||||
Royal Bank of Canada |
15,652 | 1,446,381 | ||||||
Sumitomo Mitsui Financial Group, Inc. |
20,900 | 586,778 | ||||||
Toronto-Dominion Bank (The) |
6,692 | 427,752 | ||||||
7,115,584 | ||||||||
Beverages – 0.4% | ||||||||
Budweiser Brewing Co. APAC Ltd.(b) |
22,400 | 47,141 |
Investments | Shares | Value | ||||||
Beverages – (continued) | ||||||||
Suntory Beverage & Food Ltd. |
5,600 | $ | 187,627 | |||||
234,768 | ||||||||
Capital Markets – 2.2% | ||||||||
Deutsche Boerse AG |
3,612 | 587,788 | ||||||
Euronext NV(b) |
2,324 | 147,692 | ||||||
Japan Exchange Group, Inc. |
16,800 | 220,801 | ||||||
Singapore Exchange Ltd. |
70,000 | 416,508 | ||||||
1,372,789 | ||||||||
Chemicals – 3.3% | ||||||||
Air Liquide SA |
7,924 | 1,036,132 | ||||||
Akzo Nobel NV |
280 | 17,280 | ||||||
Givaudan SA (Registered) |
28 | 83,657 | ||||||
ICL Group Ltd. |
14,140 | 128,242 | ||||||
Novozymes A/S, Class B |
8,568 | 450,094 | ||||||
Symrise AG |
2,856 | 291,729 | ||||||
2,007,134 | ||||||||
Commercial Services & Supplies – 1.4% | ||||||||
Brambles Ltd. |
19,964 | 149,107 | ||||||
Dai Nippon Printing Co. Ltd. |
11,200 | 224,776 | ||||||
Secom Co. Ltd. |
8,400 | 479,863 | ||||||
853,746 | ||||||||
Construction & Engineering – 0.3% | ||||||||
Ackermans & van Haaren NV |
252 | 35,143 | ||||||
Bouygues SA |
4,704 | 134,269 | ||||||
169,412 | ||||||||
Diversified Financial Services – 0.5% | ||||||||
Groupe Bruxelles Lambert NV |
3,668 | 270,445 | ||||||
HAL Trust |
196 | 22,587 | ||||||
293,032 | ||||||||
Diversified Telecommunication Services – 5.8% | ||||||||
BCE, Inc. |
7,980 | 359,898 | ||||||
Elisa OYJ |
9,156 | 442,603 | ||||||
HKT Trust & HKT Ltd. |
196,000 | 221,472 | ||||||
Koninklijke KPN NV |
152,264 | 426,038 | ||||||
Nippon Telegraph & Telephone Corp. |
19,600 | 539,862 |
See Accompanying Notes to the Financial Statements.
138 | FLEXSHARES ANNUAL REPORT |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
Orange SA |
36,344 | $ | 345,951 | |||||
Proximus SADP |
12,684 | 133,009 | ||||||
Singapore Telecommunications Ltd. |
165,200 | 291,852 | ||||||
Spark New Zealand Ltd. |
15,176 | 45,141 | ||||||
Swisscom AG (Registered) |
980 | 484,051 | ||||||
Telefonica Deutschland Holding AG |
73,696 | 160,679 | ||||||
TELUS Corp. |
7,728 | 161,183 | ||||||
3,611,739 | ||||||||
Electric Utilities – 4.5% | ||||||||
Chubu Electric Power Co., Inc.(a) |
25,200 | 205,316 | ||||||
CK Infrastructure Holdings Ltd. |
23,500 | 111,665 | ||||||
CLP Holdings Ltd. |
31,500 | 211,475 | ||||||
Emera, Inc.(a) |
5,460 | 202,101 | ||||||
Fortis, Inc.(a) |
8,512 | 331,669 | ||||||
Hydro One Ltd.(a) (b) |
11,032 | 276,275 | ||||||
Iberdrola SA |
59,668 | 605,946 | ||||||
Kansai Electric Power Co., Inc. (The)(a) |
25,200 | 191,075 | ||||||
Power Assets Holdings Ltd. |
42,000 | 200,908 | ||||||
Red Electrica Corp. SA(a) |
28,448 | 459,706 | ||||||
2,796,136 | ||||||||
Electronic Equipment, Instruments & Components – 0.4% | ||||||||
Hirose Electric Co. Ltd. |
1,900 | 246,840 | ||||||
Equity Real Estate Investment Trusts (REITs) – 0.3% | ||||||||
Link REIT |
35,262 | 208,432 | ||||||
Food & Staples Retailing – 3.4% | ||||||||
Carrefour SA |
14,644 | 235,699 | ||||||
Coles Group Ltd. |
7,532 | 78,651 | ||||||
Jeronimo Martins SGPS SA |
13,188 | 273,461 | ||||||
Koninklijke Ahold Delhaize NV |
16,912 | 472,198 | ||||||
Loblaw Cos. Ltd. |
5,376 | 439,917 | ||||||
Metro, Inc. |
5,236 | 273,959 | ||||||
Tesco plc |
132,832 | 328,965 | ||||||
2,102,850 | ||||||||
Food Products – 5.8% | ||||||||
JDE Peet’s NV |
6,972 | 199,695 | ||||||
MEIJI Holdings Co. Ltd. |
5,100 | 209,991 | ||||||
Nestle SA (Registered) |
26,796 | 2,919,646 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Yakult Honsha Co. Ltd.(a) |
4,900 | $ | 271,645 | |||||
3,600,977 | ||||||||
Gas Utilities – 1.1% | ||||||||
Osaka Gas Co. Ltd. |
14,000 | 207,408 | ||||||
Snam SpA |
51,632 | 229,739 | ||||||
Tokyo Gas Co. Ltd. |
14,000 | 250,264 | ||||||
687,411 | ||||||||
Health Care Equipment & Supplies – 0.3% | ||||||||
ConvaTec Group plc(b) |
39,340 | 98,741 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. |
4,620 | 52,553 | ||||||
151,294 | ||||||||
Hotels, Restaurants & Leisure – 0.9% | ||||||||
La Francaise des Jeux SAEM(b) |
1,204 | 39,269 | ||||||
McDonald’s Holdings Co. Japan Ltd. |
14,000 | 486,023 | ||||||
525,292 | ||||||||
Household Durables – 0.5% | ||||||||
Sekisui Chemical Co. Ltd. |
2,800 | 35,039 | ||||||
Sekisui House Ltd.(a) |
16,800 | 279,746 | ||||||
314,785 | ||||||||
Household Products – 0.8% | ||||||||
Reckitt Benckiser Group plc |
7,672 | 510,556 | ||||||
Industrial Conglomerates – 1.4% | ||||||||
CK Hutchison Holdings Ltd. |
42,000 | 208,666 | ||||||
Jardine Matheson Holdings Ltd. |
8,400 | 386,568 | ||||||
Keppel Corp. Ltd. |
50,400 | 248,243 | ||||||
843,477 | ||||||||
Insurance – 2.1% | ||||||||
Admiral Group plc |
11,144 | 258,794 | ||||||
Baloise Holding AG (Registered) |
560 | 76,551 | ||||||
Gjensidige Forsikring ASA |
616 | 11,251 | ||||||
Intact Financial Corp. |
2,940 | 446,178 | ||||||
Japan Post Holdings Co. Ltd. |
39,200 | 263,628 | ||||||
Medibank Pvt Ltd.(a) |
111,104 | 199,638 | ||||||
Sampo OYJ, Class A |
1,372 | 62,756 | ||||||
1,318,796 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 139 |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – 1.8% | ||||||||
CGI, Inc.* |
3,416 | $ | 274,823 | |||||
Itochu Techno-Solutions Corp. |
5,600 | 129,983 | ||||||
Nomura Research Institute Ltd. |
8,400 | 186,780 | ||||||
Obic Co. Ltd. |
3,300 | 496,659 | ||||||
1,088,245 | ||||||||
Machinery – 1.5% | ||||||||
GEA Group AG |
6,524 | 228,259 | ||||||
Kone OYJ, Class B |
11,116 | 455,390 | ||||||
Schindler Holding AG |
1,372 | 223,811 | ||||||
Schindler Holding AG (Registered) |
224 | 35,276 | ||||||
942,736 | ||||||||
Marine – 0.7% | ||||||||
Kuehne + Nagel International AG (Registered) |
1,876 | 400,038 | ||||||
Metals & Mining – 1.9% | ||||||||
Barrick Gold Corp. |
28,448 | 427,330 | ||||||
BHP Group Ltd. |
3,136 | 74,919 | ||||||
Franco-Nevada Corp. |
3,444 | 425,005 | ||||||
Hitachi Metals Ltd.* |
16,800 | 245,498 | ||||||
1,172,752 | ||||||||
Multiline Retail – 1.4% | ||||||||
B&M European Value Retail SA(a) |
14,588 | 54,184 | ||||||
Dollarama, Inc. |
3,948 | 234,295 | ||||||
Pan Pacific International Holdings Corp. |
2,800 | 45,984 | ||||||
Wesfarmers Ltd.(a) |
18,312 | 532,319 | ||||||
866,782 | ||||||||
Multi-Utilities – 0.8% | ||||||||
Canadian Utilities Ltd., Class A(a) |
2,352 | 62,505 | ||||||
National Grid plc |
39,732 | 433,850 | ||||||
496,355 | ||||||||
Oil, Gas & Consumable Fuels – 2.5% | ||||||||
ENEOS Holdings, Inc. |
70,000 | 230,673 | ||||||
Idemitsu Kosan Co. Ltd. |
9,900 | 216,470 | ||||||
Pembina Pipeline Corp. |
8,008 | 264,066 | ||||||
Shell plc |
13,804 | 382,073 | ||||||
TotalEnergies SE |
700 | 38,121 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Woodside Energy Group Ltd. |
17,024 | $ | 391,678 | |||||
1,523,081 | ||||||||
Personal Products – 2.9% | ||||||||
Beiersdorf AG |
1,736 | 166,739 | ||||||
Kobayashi Pharmaceutical Co. Ltd. |
6,700 | 356,107 | ||||||
Unilever plc |
27,832 | 1,273,604 | ||||||
1,796,450 | ||||||||
Pharmaceuticals – 15.3% | ||||||||
Astellas Pharma, Inc. |
28,000 | 385,522 | ||||||
GSK plc |
70,112 | 1,153,377 | ||||||
Hikma Pharmaceuticals plc |
12,124 | 174,347 | ||||||
Kyowa Kirin Co. Ltd. |
11,200 | 264,110 | ||||||
Novartis AG (Registered) |
5,264 | 425,538 | ||||||
Novo Nordisk A/S, Class B |
12,544 | 1,364,052 | ||||||
Ono Pharmaceutical Co. Ltd. |
22,400 | 526,864 | ||||||
Roche Holding AG |
8,820 | 2,930,893 | ||||||
Roche Holding AG |
112 | 45,460 | ||||||
Sanofi |
16,016 | 1,382,383 | ||||||
Takeda Pharmaceutical Co. Ltd. |
20,600 | 543,013 | ||||||
UCB SA |
3,808 | 287,241 | ||||||
9,482,800 | ||||||||
Professional Services – 1.7% | ||||||||
RELX plc |
6,720 | 181,125 | ||||||
SGS SA (Registered) |
112 | 247,223 | ||||||
Wolters Kluwer NV |
5,913 | 628,534 | ||||||
1,056,882 | ||||||||
Real Estate Management & Development – 3.6% | ||||||||
Capitaland Investment Ltd. |
86,800 | 184,629 | ||||||
CK Asset Holdings Ltd. |
84,000 | 464,417 | ||||||
Daito Trust Construction Co. Ltd. |
2,800 | 277,108 | ||||||
Henderson Land Development Co. Ltd. |
64,000 | 156,701 | ||||||
PSP Swiss Property AG (Registered) |
3,724 | 398,169 | ||||||
Sino Land Co. Ltd. |
224,000 | 239,413 | ||||||
Sun Hung Kai Properties Ltd. |
48,000 | 516,392 | ||||||
2,236,829 | ||||||||
Road & Rail – 2.1% | ||||||||
Aurizon Holdings Ltd. |
117,908 | 272,935 | ||||||
Canadian National Railway Co. |
4,564 | 540,031 |
See Accompanying Notes to the Financial Statements.
140 | FLEXSHARES ANNUAL REPORT |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Road & Rail – (continued) | ||||||||
MTR Corp. Ltd. |
51,000 | $ | 224,469 | |||||
Tobu Railway Co. Ltd. |
11,200 | 259,212 | ||||||
1,296,647 | ||||||||
Semiconductors & Semiconductor Equipment – 0.6% | ||||||||
ASML Holding NV |
840 | 396,842 | ||||||
Software – 2.5% | ||||||||
Constellation Software, Inc. |
336 | 485,234 | ||||||
Nice Ltd.* |
1,176 | 223,806 | ||||||
Oracle Corp. Japan |
8,400 | 448,723 | ||||||
Sage Group plc (The) |
1,260 | 10,544 | ||||||
SAP SE |
4,200 | 405,435 | ||||||
1,573,742 | ||||||||
Specialty Retail – 1.6% | ||||||||
Industria de Diseno Textil SA(a) |
25,900 | 587,224 | ||||||
USS Co. Ltd. |
28,000 | 423,292 | ||||||
1,010,516 | ||||||||
Technology Hardware, Storage & Peripherals – 1.0% | ||||||||
Canon, Inc. |
16,800 | 356,492 | ||||||
FUJIFILM Holdings Corp. |
6,200 | 284,440 | ||||||
640,932 | ||||||||
Textiles, Apparel & Luxury Goods – 0.9% | ||||||||
Hermes International |
140 | 181,333 | ||||||
LVMH Moet Hennessy Louis Vuitton SE |
616 | 389,038 | ||||||
570,371 | ||||||||
Tobacco – 0.5% | ||||||||
Japan Tobacco, Inc. |
19,600 | 324,919 | ||||||
Trading Companies & Distributors – 1.4% | ||||||||
Bunzl plc |
8,148 | 266,520 | ||||||
ITOCHU Corp. |
22,400 | 580,062 | ||||||
846,582 | ||||||||
Transportation Infrastructure – 0.7% | ||||||||
Atlantia SpA |
18,368 | 409,918 |
Investments | Shares | Value | ||||||
Water Utilities – 0.4% | ||||||||
United Utilities Group plc |
20,160 | $ | 218,046 | |||||
Wireless Telecommunication Services – 2.5% | ||||||||
KDDI Corp. |
26,700 | 789,494 | ||||||
SoftBank Corp. |
44,800 | 441,716 | ||||||
Vodafone Group plc |
275,100 | 321,931 | ||||||
1,553,141 | ||||||||
Total
Common Stocks (Cost $66,583,161) |
|
60,676,378 | ||||||
Principal Amount |
||||||||
SECURITIES LENDING REINVESTMENTS(c) – 0.8% | ||||||||
REPURCHASE AGREEMENTS – 0.8% | ||||||||
CF
Secured LLC, 3.00%, dated 10/31/2022, due 11/1/2022, repurchase price
$481,376, collateralized by various U.S. Treasury Securities, ranging from
0.00% – 7.63%, maturing 11/15/2022 –8/15/2052; total market
value $488,348 |
$ | 481,336 | 481,336 | |||||
Total
Investments – 98.9% (Cost $67,064,497) |
|
61,157,714 | ||||||
Other assets less liabilities – 1.1% |
|
694,034 | ||||||
NET ASSETS – 100.0% |
|
$ | 61,851,748 |
* |
Non-income producing security. |
(a) |
The security or a portion of this security is on loan at October 31, 2022. The total value of securities on loan at October 31, 2022 was $2,551,916, collateralized in the form of cash with a value of $481,336 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $1,785,618 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 4.75%, and maturity dates ranging from December 1, 2022 – May 15, 2050 and $467,049 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from April 19, 2023 – June 30, 2120; a total value of $2,734,003. |
(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. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 141 |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
(c) |
The security was purchased with cash collateral held from securities on loan at October 31, 2022. The total value of securities purchased was $481,336. |
Percentages shown are based on Net Assets.
Abbreviations
OYJ – Public Limited Company
As of October 31, 2022, 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 |
$ | 2,118,871 | ||
Aggregate gross unrealized depreciation |
(8,131,697 | ) | ||
Net unrealized depreciation |
$ | (6,012,826 | ) | |
Federal income tax cost |
$ | 67,142,963 |
Futures Contracts
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund had the following open futures contracts as of October 31, 2022:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Depreciation* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI EAFE E-Mini Index |
13 | 12/16/2022 | USD | $ | 1,141,335 | $ | (42,523 | ) |
* |
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® Developed Markets ex-US Quality Low Volatility Index Fund had the following outstanding contracts as of October 31, 2022:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date |
Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||
CAD |
41,862 | Citibank NA | USD | 30,528 | 12/21/2022 | $ | 179 | |||||||||||||||
USD |
46,892 | Toronto-Dominion Bank (The) | AUD | 70,050 | 12/21/2022 | 2,025 | ||||||||||||||||
USD |
3,334 | Toronto-Dominion Bank (The) | CAD | 4,439 | 12/21/2022 | 77 | ||||||||||||||||
USD |
58,725 | Citibank NA | CHF | 56,297 | 12/21/2022 | 2,122 | ||||||||||||||||
USD |
6,507 | Morgan Stanley | DKK | 48,141 | 12/21/2022 | 88 | ||||||||||||||||
USD |
52,646 | Citibank NA | EUR | 52,141 | 12/21/2022 | 895 | ||||||||||||||||
USD |
149,287 | JPMorgan Chase Bank | EUR | 148,464 | 12/21/2022 | 1,933 | ||||||||||||||||
USD |
55,585 | BNP Paribas SA | ILS | 190,343 | 12/21/2022 | 1,274 | ||||||||||||||||
USD |
176,912 | Citibank NA | JPY | 25,370,958 | 12/21/2022 | 5,103 | ||||||||||||||||
USD |
27,626 | Morgan Stanley | JPY | 3,919,144 | 12/21/2022 | 1,087 | ||||||||||||||||
USD |
12,791 | Bank of New York | NOK | 131,563 | 12/21/2022 | 114 | ||||||||||||||||
USD |
37,733 | Citibank NA | NZD | 63,082 | 12/21/2022 | 1,056 | ||||||||||||||||
USD |
40,310 | JPMorgan Chase Bank | SEK | 433,881 | 12/21/2022 | 877 | ||||||||||||||||
USD |
20,030 | JPMorgan Chase Bank | SGD | 28,197 | 12/21/2022 | 98 | ||||||||||||||||
Total unrealized appreciation |
|
$ | 16,928 | |||||||||||||||||||
HKD |
438,274 | Citibank NA | USD | 55,922 | 12/21/2022 | $ | (54 | ) | ||||||||||||||
NZD |
21,853 | Morgan Stanley | USD | 12,988 | 12/21/2022 | (283 | ) | |||||||||||||||
SGD |
44,554 | JPMorgan Chase Bank | USD | 31,711 | 12/21/2022 | (217 | ) | |||||||||||||||
USD |
131,719 | Toronto-Dominion Bank (The) | GBP | 115,442 | 12/21/2022 | (1,428 | ) | |||||||||||||||
Total unrealized depreciation |
|
$ | (1,982 | ) | ||||||||||||||||||
Net unrealized appreciation |
|
$ | 14,946 |
See Accompanying Notes to the Financial Statements.
142 | FLEXSHARES ANNUAL REPORT |
FlexShares® Developed Markets ex-US Quality Low Volatility 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
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of October 31, 2022:
Australia |
2.7 | % | ||
Belgium |
1.2 | |||
Canada |
11.4 | |||
Denmark |
2.9 | |||
Finland |
1.6 | |||
France |
6.4 | |||
Germany |
3.0 | |||
Hong Kong |
5.7 | |||
Israel |
2.7 | |||
Italy |
1.0 | |||
Japan |
23.4 | |||
Netherlands |
3.9 | |||
New Zealand |
0.2 | |||
Norway |
0.0 | † | ||
Portugal |
0.4 | |||
Singapore |
5.2 | |||
Spain |
3.2 | |||
Switzerland |
13.4 | |||
United Kingdom |
9.8 | |||
Other1 |
1.9 | |||
100.0 | % |
† |
Amount represents less than 0.05%. |
1 |
Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
Security Type | % of Net Assets | |||
Common Stocks |
98.1 | % | ||
Securities Lending Reinvestments |
0.8 | |||
Others(1) |
1.1 | |||
100.0 | % |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 143 |
FlexShares® Emerging Markets Quality Low Volatility Index Fund
October 31, 2022
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.2% | ||||||||
Air Freight & Logistics – 0.6% | ||||||||
Agility Public Warehousing Co. KSC |
18,712 | $ | 47,361 | |||||
Auto Components – 0.7% | ||||||||
Cheng Shin Rubber Industry Co. Ltd. |
60,000 | 60,144 | ||||||
Automobiles – 1.4% | ||||||||
Bajaj Auto Ltd. |
1,472 | 65,295 | ||||||
Hero MotoCorp Ltd. |
1,436 | 46,437 | ||||||
111,732 | ||||||||
Banks – 21.9% | ||||||||
Abu Dhabi Islamic Bank PJSC |
23,024 | 59,549 | ||||||
Agricultural Bank of China Ltd., Class H |
252,000 | 71,910 | ||||||
Al Rajhi Bank* |
1,712 | 38,818 | ||||||
Axis Bank Ltd. |
320 | 3,502 | ||||||
Banco BBVA Peru SA |
4,104 | 1,627 | ||||||
Bank Central Asia Tbk. PT |
25,200 | 14,218 | ||||||
Bank of China Ltd., Class H |
284,000 | 91,533 | ||||||
Bank of Communications Co. Ltd., Class H |
132,000 | 64,404 | ||||||
Boubyan Bank KSCP |
19,108 | 50,831 | ||||||
Chang Hwa Commercial Bank Ltd. |
82,472 | 42,487 | ||||||
China CITIC Bank Corp. Ltd., Class H |
120,000 | 45,249 | ||||||
China Construction Bank Corp., Class H |
280,000 | 148,742 | ||||||
China Merchants Bank Co. Ltd., Class H |
500 | 1,643 | ||||||
Commercial International Bank Egypt SAE |
34,968 | 46,914 | ||||||
Dubai Islamic Bank PJSC |
33,040 | 52,352 | ||||||
E.Sun Financial Holding Co. Ltd. |
60,000 | 43,200 | ||||||
First Abu Dhabi Bank PJSC |
1,240 | 6,043 | ||||||
First Financial Holding Co. Ltd. |
79,565 | 61,114 | ||||||
Hong Leong Bank Bhd. |
800 | 3,580 | ||||||
Hua Nan Financial Holdings Co. Ltd. |
92,000 | 60,101 | ||||||
ICICI Bank Ltd. |
984 | 10,802 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
404,000 | 175,499 | ||||||
Itau Unibanco Holding SA (Preference)* |
1,600 | 9,270 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Kuwait Finance House KSCP |
36,616 | $ | 95,751 | |||||
Malayan Banking Bhd. |
18,185 | 33,039 | ||||||
Mega Financial Holding Co. Ltd. |
18,700 | 17,352 | ||||||
National Bank of Kuwait SAKP |
51,436 | 179,009 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(a) |
84,000 | 38,951 | ||||||
Qatar Islamic Bank SAQ |
10,872 | 72,813 | ||||||
Qatar National Bank QPSC |
31,904 | 174,687 | ||||||
Saudi National Bank (The) |
1,312 | 20,740 | ||||||
Sberbank of Russia PJSC* ‡ |
12,360 | — | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. |
85,933 | 66,672 | ||||||
1,802,402 | ||||||||
Capital Markets – 0.7% | ||||||||
Macquarie Korea Infrastructure Fund |
7,000 | 54,302 | ||||||
Chemicals – 2.6% | ||||||||
Asian Paints Ltd. |
536 | 20,123 | ||||||
PhosAgro PJSC‡ |
1,158 | — | ||||||
Pidilite Industries Ltd. |
1,832 | 57,197 | ||||||
SABIC Agri-Nutrients Co. |
1,916 | 81,075 | ||||||
Saudi Basic Industries Corp. |
748 | 17,598 | ||||||
Yanbu National Petrochemical Co. |
3,280 | 39,019 | ||||||
215,012 | ||||||||
Construction Materials – 1.0% | ||||||||
ACC Ltd. |
676 | 19,520 | ||||||
Asia Cement Corp. |
20,000 | 23,152 | ||||||
LafargeHolcim Maroc SA |
292 | 39,444 | ||||||
82,116 | ||||||||
Consumer Finance – 0.6% | ||||||||
Bajaj Finance Ltd. |
84 | 7,250 | ||||||
Samsung Card Co. Ltd. |
1,856 | 40,261 | ||||||
47,511 | ||||||||
Diversified Financial Services – 0.6% | ||||||||
Far East Horizon Ltd. |
60,000 | 46,319 | ||||||
Housing Development Finance Corp. Ltd. |
232 | 6,922 | ||||||
53,241 |
See Accompanying Notes to the Financial Statements.
144 | FLEXSHARES ANNUAL REPORT |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – 5.8% | ||||||||
China Tower Corp. Ltd., Class H(a) |
600,000 | $ | 54,268 | |||||
Chunghwa Telecom Co. Ltd. |
28,000 | 96,454 | ||||||
Emirates Integrated Telecommunications Co. PJSC |
28,288 | 44,130 | ||||||
Emirates Telecommunications Group Co. PJSC |
11,508 | 80,834 | ||||||
Hellenic Telecommunications Organization SA |
4,180 | 65,688 | ||||||
Itissalat Al-Maghrib |
6,108 | 56,947 | ||||||
Ooredoo QPSC |
19,424 | 52,110 | ||||||
Telefonica Brasil SA |
3,200 | 25,193 | ||||||
475,624 | ||||||||
Electric Utilities – 3.4% | ||||||||
Manila Electric Co. |
8,200 | 42,648 | ||||||
Power Grid Corp. of India Ltd. |
28,304 | 78,011 | ||||||
Saudi Electricity Co. |
9,888 | 71,051 | ||||||
Tenaga Nasional Bhd. |
26,000 | 46,303 | ||||||
Transmissora Alianca de Energia Eletrica SA |
5,600 | 42,892 | ||||||
280,905 | ||||||||
Electronic Equipment, Instruments & Components – 0.5% | ||||||||
Hon Hai Precision Industry Co. Ltd. |
2,000 | 6,362 | ||||||
WPG Holdings Ltd. |
28,000 | 38,191 | ||||||
44,553 | ||||||||
Entertainment – 0.4% | ||||||||
NetEase, Inc., ADR |
664 | 36,932 | ||||||
Food & Staples Retailing – 2.2% | ||||||||
InRetail Peru Corp.(a) |
1,412 | 48,714 | ||||||
Nahdi Medical Co. |
1,256 | 66,184 | ||||||
President Chain Store Corp. |
8,000 | 66,537 | ||||||
181,435 | ||||||||
Food Products – 5.1% | ||||||||
Almarai Co. JSC |
3,440 | 51,542 | ||||||
Dali Foods Group Co. Ltd.(a) |
104,000 | 42,793 | ||||||
Nestle India Ltd. |
116 | 28,536 | ||||||
Nestle Malaysia Bhd. |
2,400 | 67,513 | ||||||
Tingyi Cayman Islands Holding Corp. |
48,000 | 75,089 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Uni-President China Holdings Ltd. |
52,000 | $ | 38,421 | |||||
Uni-President Enterprises Corp. |
28,000 | 56,917 | ||||||
Want Want China Holdings Ltd. |
92,000 | 60,475 | ||||||
421,286 | ||||||||
Gas Utilities – 1.4% | ||||||||
China Resources Gas Group Ltd. |
11,600 | 29,702 | ||||||
ENN Energy Holdings Ltd. |
2,000 | 19,886 | ||||||
Petronas Gas Bhd. |
18,800 | 67,995 | ||||||
117,583 | ||||||||
Health Care Providers & Services – 4.4% | ||||||||
Bangkok Dusit Medical Services PCL, NVDR |
105,600 | 81,850 | ||||||
Bumrungrad Hospital PCL, NVDR |
13,600 | 81,114 | ||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
940 | 56,687 | ||||||
IHH Healthcare Bhd. |
42,000 | 52,855 | ||||||
Mouwasat Medical Services Co. |
812 | 47,326 | ||||||
Sinopharm Group Co. Ltd., Class H |
22,400 | 42,689 | ||||||
362,521 | ||||||||
Hotels, Restaurants & Leisure – 0.3% | ||||||||
Kangwon Land, Inc.* |
728 | 11,755 | ||||||
Yum China Holdings, Inc. |
308 | 12,736 | ||||||
24,491 | ||||||||
Household Durables – 0.7% | ||||||||
Coway Co. Ltd. |
1,504 | 58,388 | ||||||
Independent Power and Renewable
Electricity Producers – 0.1% |
||||||||
Engie Brasil Energia SA |
1,200 | 9,198 | ||||||
Unipro PJSC‡ |
726,000 | — | ||||||
9,198 | ||||||||
Industrial Conglomerates – 2.3% | ||||||||
Alpha Dhabi Holding PJSC* |
7,676 | 51,200 | ||||||
International Holding Co. PJSC* |
1,268 | 139,123 | ||||||
190,323 | ||||||||
Interactive Media & Services – 2.7% | ||||||||
Tencent Holdings Ltd. |
8,400 | 220,009 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 145 |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Internet & Direct Marketing Retail – 2.7% | ||||||||
Alibaba Group Holding Ltd., ADR* |
3,040 | $ | 193,283 | |||||
JD.com, Inc., ADR |
676 | 25,208 | ||||||
Pinduoduo, Inc., ADR* |
48 | 2,632 | ||||||
221,123 | ||||||||
IT Services – 4.4% | ||||||||
Infosys Ltd. |
3,448 | 64,049 | ||||||
Samsung SDS Co. Ltd. |
668 | 58,619 | ||||||
Tata Consultancy Services Ltd. |
6,188 | 238,703 | ||||||
361,371 | ||||||||
Life Sciences Tools & Services – 0.1% | ||||||||
Samsung Biologics Co. Ltd.* (a) |
12 | 7,388 | ||||||
Marine – 0.5% | ||||||||
MISC Bhd. |
28,800 | 44,041 | ||||||
Metals & Mining – 0.5% | ||||||||
Polyus PJSC* ‡ |
546 | — | ||||||
Vale SA |
3,200 | 40,939 | ||||||
40,939 | ||||||||
Multiline Retail – 0.0% | ||||||||
Robinson PCL* ‡ |
600 | — | ||||||
Multi-Utilities – 1.2% | ||||||||
Dubai Electricity & Water Authority PJSC |
77,832 | 51,704 | ||||||
Qatar Electricity & Water Co. QSC |
9,080 | 46,126 | ||||||
97,830 | ||||||||
Oil, Gas & Consumable Fuels – 2.9% | ||||||||
Petroleo Brasileiro SA |
1,200 | 7,606 | ||||||
Petroleo Brasileiro SA (Preference) |
2,000 | 11,362 | ||||||
Petronas Dagangan Bhd. |
9,600 | 44,020 | ||||||
Petronet LNG Ltd. |
1,036 | 2,573 | ||||||
Qatar Fuel QSC |
9,760 | 51,135 | ||||||
Qatar Gas Transport Co. Ltd. |
45,468 | 51,189 | ||||||
Reliance Industries Ltd. |
2,268 | 69,856 | ||||||
Surgutneftegas PJSC (Preference)‡ |
156,600 | — | ||||||
237,741 |
Investments | Shares | Value | ||||||
Personal Products – 1.7% | ||||||||
Colgate-Palmolive India Ltd. |
3,648 | $ | 71,911 | |||||
Hengan International Group Co. Ltd. |
14,000 | 54,307 | ||||||
Hindustan Unilever Ltd. |
328 | 10,107 | ||||||
136,325 | ||||||||
Pharmaceuticals – 4.1% | ||||||||
Cipla Ltd. |
6,008 | 84,730 | ||||||
Dr Reddy’s Laboratories Ltd. |
556 | 29,780 | ||||||
Lupin Ltd. |
1,360 | 11,484 | ||||||
Richter Gedeon Nyrt. |
2,216 | 43,689 | ||||||
Sun Pharmaceutical Industries Ltd. |
3,940 | 48,402 | ||||||
Torrent Pharmaceuticals Ltd. |
3,700 | 73,752 | ||||||
Yuhan Corp. |
1,088 | 45,676 | ||||||
337,513 | ||||||||
Real Estate Management & Development – 1.0% | ||||||||
Aldar Properties PJSC |
38,300 | 45,046 | ||||||
Wharf Holdings Ltd. (The) |
12,000 | 34,319 | ||||||
79,365 | ||||||||
Semiconductors & Semiconductor Equipment – 5.0% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
34,000 | 411,514 | ||||||
Specialty Retail – 4.4% | ||||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
60,380 | 74,138 | ||||||
Home Product Center PCL, NVDR |
188,400 | 72,271 | ||||||
Hotel Shilla Co. Ltd. |
1,276 | 58,226 | ||||||
Jarir Marketing Co. |
1,536 | 67,040 | ||||||
MR DIY Group M Bhd.(a) |
105,200 | 44,946 | ||||||
PTT Oil & Retail Business PCL, NVDR |
17,200 | 10,891 | ||||||
Zhongsheng Group Holdings Ltd. |
8,000 | 30,370 | ||||||
357,882 | ||||||||
Technology Hardware, Storage & Peripherals – 4.3% | ||||||||
Compal Electronics, Inc. |
64,000 | 41,909 | ||||||
Inventec Corp. |
60,000 | 45,434 | ||||||
Lite-On Technology Corp. |
6,000 | 11,917 | ||||||
Pegatron Corp. |
16,000 | 29,296 | ||||||
Samsung Electronics Co. Ltd. |
5,300 | 221,012 | ||||||
349,568 |
See Accompanying Notes to the Financial Statements.
146 | FLEXSHARES ANNUAL REPORT |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – 0.3% | ||||||||
Page Industries Ltd. |
40 | $ | 24,049 | |||||
Tobacco – 1.0% | ||||||||
KT&G Corp. |
1,244 | 83,577 | ||||||
Transportation Infrastructure – 1.3% | ||||||||
Taiwan High Speed Rail Corp. |
52,000 | 45,347 | ||||||
Westports Holdings Bhd. |
82,000 | 58,274 | ||||||
103,621 | ||||||||
Wireless Telecommunication Services – 4.4% | ||||||||
Advanced Info Service PCL, NVDR |
14,400 | 72,265 | ||||||
Bharti Airtel Ltd. |
164 | 1,648 | ||||||
Etihad Etisalat Co. |
4,708 | 45,858 | ||||||
Far EasTone Telecommunications Co. Ltd. |
30,000 | 65,824 | ||||||
Intouch Holdings PCL, NVDR |
34,400 | 65,076 | ||||||
PLDT, Inc. |
480 | 13,534 | ||||||
Taiwan Mobile Co. Ltd. |
24,000 | 70,832 | ||||||
Vodacom Group Ltd. |
3,768 | 25,693 | ||||||
360,730 | ||||||||
Total
Common Stocks (Cost $9,468,208) |
|
8,151,646 | ||||||
Total
Investments – 99.2% (Cost $9,468,208) |
|
8,151,646 | ||||||
Other assets less liabilities – 0.8% |
|
62,246 | ||||||
NET ASSETS – 100.0% |
|
$ | 8,213,892 |
* |
Non-income producing security. |
(a) |
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. |
‡ |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
Percentages shown are based on Net Assets.
Abbreviations
ADR – American 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 October 31, 2022, 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 |
$ | 524,791 | ||
Aggregate gross unrealized depreciation |
(1,944,828 | ) | ||
Net unrealized depreciation |
$ | (1,420,037 | ) | |
Federal income tax cost |
$ | 9,564,014 |
Futures Contracts
FlexShares® Emerging Markets Quality Low Volatility Index Fund had the following open futures contracts as of October 31, 2022:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value and Unrealized Depreciation* |
||||||||||||||||
Long Contracts |
|
|||||||||||||||||||
MSCI Emerging Markets E-Mini Index |
2 | 12/16/2022 | USD | $ | 85,360 | $ | (7,669 | ) |
* |
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 ANNUAL REPORT | 147 |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
FlexShares® Emerging Markets Quality Low Volatility Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of October 31, 2022:
Brazil |
1.8 | % | ||
China |
20.2 | |||
Egypt |
0.6 | |||
Greece |
0.8 | |||
Hungary |
0.5 | |||
India |
13.1 | |||
Indonesia |
0.2 | |||
Kuwait |
4.5 | |||
Malaysia |
5.6 | |||
Morocco |
1.2 | |||
Peru |
0.6 | |||
Philippines |
0.7 | |||
Qatar |
5.4 | |||
Saudi Arabia |
7.3 | |||
South Africa |
0.3 | |||
South Korea |
7.8 | |||
Taiwan |
16.6 | |||
Thailand |
4.7 | |||
United Arab Emirates |
7.3 | |||
Other1 |
0.8 | |||
100.0 | % |
1 |
Includes any non-equity securities and net other assets (liabilities). |
Security Type | % of Net Assets | |||
Common Stocks |
99.2 | % | ||
Others(1) |
0.8 | |||
100.0 | % |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
148 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund
October 31, 2022
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.1% | ||||||||
Aerospace & Defense – 1.6% | ||||||||
AAR Corp.* |
2,790 | $ | 123,653 | |||||
Aerojet Rocketdyne Holdings, Inc.* |
3,906 | 189,246 | ||||||
AeroVironment, Inc.* |
1,302 | 119,133 | ||||||
Axon Enterprise, Inc.* (a) |
1,674 | 243,467 | ||||||
Boeing Co. (The)* |
14,245 | 2,030,055 | ||||||
BWX Technologies, Inc. |
4,278 | 243,760 | ||||||
Curtiss-Wright Corp.(a) |
2,590 | 434,680 | ||||||
Ducommun, Inc.* |
558 | 26,343 | ||||||
General Dynamics Corp. |
7,254 | 1,812,049 | ||||||
HEICO Corp.(a) |
1,480 | 240,707 | ||||||
HEICO Corp., Class A |
1,860 | 236,778 | ||||||
Hexcel Corp. |
3,330 | 185,481 | ||||||
Howmet Aerospace, Inc. |
11,840 | 420,912 | ||||||
Huntington Ingalls Industries, Inc. |
1,302 | 334,705 | ||||||
Kaman Corp. |
2,046 | 65,677 | ||||||
Kratos Defense & Security Solutions, Inc.* |
4,278 | 47,400 | ||||||
L3Harris Technologies, Inc.(a) |
6,324 | 1,558,676 | ||||||
Lockheed Martin Corp.(a) |
7,626 | 3,711,422 | ||||||
Maxar Technologies, Inc. |
4,836 | 108,036 | ||||||
Mercury Systems, Inc.* (a) |
4,278 | 207,055 | ||||||
Moog, Inc., Class A |
7,068 | 599,013 | ||||||
Northrop Grumman Corp. |
4,836 | 2,655,012 | ||||||
Parsons Corp.* (a) |
3,523 | 165,158 | ||||||
Raytheon Technologies Corp. |
47,987 | 4,550,127 | ||||||
Spirit AeroSystems Holdings, Inc., Class A |
4,464 | 103,386 | ||||||
Textron, Inc. |
6,660 | 455,810 | ||||||
TransDigm Group, Inc. |
1,302 | 749,640 | ||||||
Triumph Group, Inc.* |
7,068 | 63,965 | ||||||
V2X, Inc.* |
3,348 | 137,235 | ||||||
Virgin Galactic Holdings, Inc.* (a) |
10,230 | 47,263 | ||||||
Woodward, Inc.(a) |
3,348 | 307,012 | ||||||
22,172,856 |
Investments | Shares | Value | ||||||
Air Freight & Logistics – 0.6% | ||||||||
Air Transport Services Group, Inc.* (a) |
15,725 | $ | 459,170 | |||||
Atlas Air Worldwide Holdings, Inc.* (a) |
6,595 | 667,018 | ||||||
CH Robinson Worldwide, Inc. |
3,906 | 381,695 | ||||||
Expeditors International of Washington, Inc.(a) |
4,278 | 418,602 | ||||||
FedEx Corp. |
7,626 | 1,222,295 | ||||||
Forward Air Corp. |
930 | 98,459 | ||||||
GXO Logistics, Inc.* (a) |
1,674 | 61,168 | ||||||
Hub Group, Inc., Class A* (a) |
8,510 | 660,376 | ||||||
United Parcel Service, Inc., Class B |
23,994 | 4,025,474 | ||||||
7,994,257 | ||||||||
Airlines – 0.3% | ||||||||
Alaska Air Group, Inc.* (a) |
28,272 | 1,256,973 | ||||||
Allegiant Travel Co.* |
930 | 69,796 | ||||||
American Airlines Group, Inc.* (a) |
16,465 | 233,474 | ||||||
Delta Air Lines, Inc.* |
20,274 | 687,897 | ||||||
Frontier Group Holdings, Inc.* |
7,668 | 100,527 | ||||||
Hawaiian Holdings, Inc.* (a) |
16,368 | 236,190 | ||||||
JetBlue Airways Corp.* |
69,748 | 560,774 | ||||||
SkyWest, Inc.* |
5,208 | 92,077 | ||||||
Southwest Airlines Co.* |
16,368 | 594,977 | ||||||
Spirit Airlines, Inc. |
4,092 | 90,024 | ||||||
Sun Country Airlines Holdings, Inc.* |
2,232 | 36,337 | ||||||
United Airlines Holdings, Inc.* (a) |
6,845 | 294,883 | ||||||
Wheels Up Experience, Inc.* (a) |
62,309 | 110,287 | ||||||
4,364,216 | ||||||||
Auto Components – 0.5% | ||||||||
Adient plc* (a) |
21,018 | 735,210 | ||||||
American Axle & Manufacturing Holdings, Inc.* (a) |
19,902 | 192,850 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 149 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Aptiv plc* (a) |
7,626 | $ | 694,500 | |||||
Autoliv, Inc. |
4,278 | 343,737 | ||||||
BorgWarner, Inc.(a) |
5,920 | 222,178 | ||||||
Dana, Inc. |
30,504 | 486,844 | ||||||
Dorman Products, Inc.* |
1,860 | 151,813 | ||||||
Fox Factory Holding Corp.* |
2,976 | 261,442 | ||||||
Garrett Motion, Inc.* (a) |
9,858 | 65,457 | ||||||
Gentex Corp. |
8,556 | 226,648 | ||||||
Gentherm, Inc.* (a) |
1,116 | 65,197 | ||||||
Goodyear Tire & Rubber Co. (The)* |
62,867 | 798,411 | ||||||
LCI Industries(a) |
5,580 | 592,094 | ||||||
Lear Corp. |
1,488 | 206,401 | ||||||
Luminar Technologies, Inc.* (a) |
11,718 | 94,799 | ||||||
Modine Manufacturing Co.* |
9,300 | 166,656 | ||||||
Patrick Industries, Inc. |
4,836 | 221,054 | ||||||
QuantumScape Corp.* (a) |
61,007 | 508,188 | ||||||
Standard Motor Products, Inc. |
5,766 | 218,704 | ||||||
Stoneridge, Inc.* (a) |
7,254 | 151,391 | ||||||
Tenneco, Inc., Class A* (a) |
16,926 | 333,442 | ||||||
Visteon Corp.* |
2,035 | 265,506 | ||||||
XPEL, Inc.* (a) (b) |
1,302 | 90,085 | ||||||
7,092,607 | ||||||||
Automobiles – 1.7% | ||||||||
Ford Motor Co. |
130,941 | 1,750,681 | ||||||
General Motors Co. |
48,359 | 1,898,091 | ||||||
Harley-Davidson, Inc. |
29,946 | 1,287,678 | ||||||
Lordstown Motors Corp.* (a) |
48,917 | 88,540 | ||||||
Lucid Group, Inc.* (a) |
15,810 | 225,925 | ||||||
Mullen Automotive, Inc.* (a) |
81,652 | 38,899 | ||||||
Rivian Automotive, Inc., Class A* (a) |
16,280 | 569,311 | ||||||
Tesla, Inc.* |
70,300 | 15,996,062 | ||||||
Thor Industries, Inc.(a) |
11,470 | 934,461 | ||||||
Winnebago Industries, Inc.(a) |
7,440 | 444,093 | ||||||
Workhorse Group, Inc.* (a) |
10,044 | 27,119 | ||||||
23,260,860 |
Investments | Shares | Value | ||||||
Banks – 6.5% | ||||||||
1st Source Corp. |
5,180 | $ | 301,269 | |||||
Ameris Bancorp(a) |
13,950 | 718,565 | ||||||
Associated Banc-Corp. |
30,525 | 743,284 | ||||||
Atlantic Union Bankshares Corp.(a) |
14,800 | 511,192 | ||||||
Banc of California, Inc. |
3,720 | 62,050 | ||||||
BancFirst Corp.(a) |
1,670 | 160,019 | ||||||
Bancorp, Inc. (The)* |
6,138 | 169,286 | ||||||
Bank of America Corp. |
228,660 | 8,240,906 | ||||||
Bank of Hawaii Corp.(a) |
2,418 | 183,647 | ||||||
Bank OZK(a) |
26,825 | 1,152,939 | ||||||
BankUnited, Inc.(a) |
19,630 | 705,699 | ||||||
Banner Corp.(a) |
6,475 | 484,006 | ||||||
Berkshire Hills Bancorp, Inc.(a) |
3,906 | 114,251 | ||||||
BOK Financial Corp.(a) |
7,068 | 778,823 | ||||||
Brookline Bancorp, Inc. |
13,020 | 179,025 | ||||||
Cadence Bank(a) |
38,480 | 1,063,972 | ||||||
Cathay General Bancorp |
15,170 | 691,752 | ||||||
Central Pacific Financial Corp. |
3,906 | 80,151 | ||||||
Citigroup, Inc. |
64,169 | 2,942,790 | ||||||
Citizens Financial Group, Inc.(a) |
15,252 | 623,807 | ||||||
City Holding Co.(a) |
372 | 37,516 | ||||||
Columbia Banking System, Inc.(a) |
18,042 | 603,866 | ||||||
Comerica, Inc. |
5,208 | 367,164 | ||||||
Commerce Bancshares, Inc.(a) |
3,162 | 223,996 | ||||||
Community Bank System, Inc.(a) |
1,665 | 103,946 | ||||||
Community Trust Bancorp, Inc. |
2,046 | 96,755 | ||||||
ConnectOne Bancorp, Inc. |
4,278 | 107,164 | ||||||
Cullen/Frost Bankers, Inc.(a) |
2,046 | 317,232 | ||||||
Customers Bancorp, Inc.* |
5,766 | 194,257 | ||||||
CVB Financial Corp.(a) |
9,864 | 283,294 | ||||||
Dime Community Bancshares, Inc.(a) |
9,620 | 332,179 | ||||||
Eagle Bancorp, Inc.(a) |
6,138 | 277,929 | ||||||
East West Bancorp, Inc.(a) |
5,580 | 399,361 | ||||||
Eastern Bankshares, Inc. |
6,138 | 117,665 |
See Accompanying Notes to the Financial Statements.
150 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Enterprise Financial Services Corp.(a) |
3,515 | $ | 187,947 | |||||
Farmers National Banc Corp. |
11,904 | 163,561 | ||||||
FB Financial Corp. |
1,302 | 54,632 | ||||||
Fifth Third Bancorp |
23,994 | 856,346 | ||||||
Financial Institutions, Inc. |
4,278 | 101,945 | ||||||
First Bancorp/NC(a) |
3,534 | 157,510 | ||||||
First Bancorp/PR(a) |
47,753 | 754,020 | ||||||
First Bancshares, Inc. (The)(a) |
3,162 | 103,524 | ||||||
First Busey Corp. |
14,322 | 378,244 | ||||||
First Citizens BancShares, Inc., Class A(a) |
372 | 305,829 | ||||||
First Commonwealth Financial Corp.(a) |
25,296 | 362,745 | ||||||
First Financial Bancorp(a) |
18,786 | 489,751 | ||||||
First Financial Bankshares, Inc.(a) |
6,696 | 257,729 | ||||||
First Financial Corp. |
3,720 | 180,383 | ||||||
First Foundation, Inc.(a) |
5,208 | 83,120 | ||||||
First Hawaiian, Inc.(a) |
27,528 | 704,166 | ||||||
First Horizon Corp. |
20,720 | 507,847 | ||||||
First Interstate BancSystem, Inc., Class A(a) |
18,786 | 856,829 | ||||||
First Merchants Corp. |
13,206 | 592,949 | ||||||
First of Long Island Corp. (The) |
8,370 | 147,145 | ||||||
First Republic Bank |
4,836 | 580,804 | ||||||
Flushing Financial Corp.(a) |
5,394 | 106,262 | ||||||
FNB Corp.(a) |
73,260 | 1,058,607 | ||||||
Fulton Financial Corp.(a) |
33,480 | 610,340 | ||||||
German American Bancorp, Inc.(a) |
3,433 | 134,883 | ||||||
Glacier Bancorp, Inc.(a) |
5,952 | 340,931 | ||||||
Hancock Whitney Corp.(a) |
19,158 | 1,070,357 | ||||||
Hanmi Financial Corp.(a) |
7,812 | 209,205 | ||||||
HarborOne Bancorp, Inc. |
2,046 | 31,161 | ||||||
Heartland Financial USA, Inc. |
9,114 | 449,502 | ||||||
Heritage Commerce Corp.(a) |
9,250 | 132,275 | ||||||
Heritage Financial Corp.(a) |
5,952 | 200,523 | ||||||
Hilltop Holdings, Inc.(a) |
13,133 | 380,200 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Home BancShares, Inc.(a) |
40,547 | $ | 1,033,543 | |||||
HomeStreet, Inc. |
3,162 | 82,086 | ||||||
Hope Bancorp, Inc.(a) |
27,528 | 373,555 | ||||||
Horizon Bancorp, Inc. |
6,696 | 99,837 | ||||||
Huntington Bancshares, Inc. |
46,685 | 708,678 | ||||||
Independent Bank Corp. – MA |
2,418 | 210,390 | ||||||
Independent Bank Corp. – MI |
7,030 | 162,604 | ||||||
Independent Bank Group, Inc. |
8,695 | 548,568 | ||||||
International Bancshares Corp. |
13,392 | 664,243 | ||||||
JPMorgan Chase & Co. |
96,346 | 12,128,034 | ||||||
KeyCorp(a) |
33,666 | 601,611 | ||||||
Lakeland Bancorp, Inc.(a) |
12,090 | 225,479 | ||||||
Lakeland Financial Corp. |
744 | 61,492 | ||||||
Live Oak Bancshares, Inc.(a) |
930 | 30,197 | ||||||
M&T Bank Corp.(a) |
6,218 | 1,046,925 | ||||||
Mercantile Bank Corp. |
4,464 | 156,017 | ||||||
Midland States Bancorp, Inc. |
4,836 | 135,601 | ||||||
National Bank Holdings Corp., Class A |
1,116 | 48,903 | ||||||
NBT Bancorp, Inc.(a) |
7,998 | 379,025 | ||||||
Nicolet Bankshares, Inc.* (a) |
1,619 | 123,514 | ||||||
Northwest Bancshares, Inc.(a) |
4,650 | 70,029 | ||||||
OceanFirst Financial Corp. |
15,810 | 356,990 | ||||||
OFG Bancorp |
13,505 | 376,519 | ||||||
Old National Bancorp(a) |
61,975 | 1,212,231 | ||||||
Pacific Premier Bancorp, Inc.(a) |
20,274 | 738,176 | ||||||
PacWest Bancorp(a) |
26,970 | 670,474 | ||||||
Park National Corp.(a) |
372 | 54,870 | ||||||
Pathward Financial, Inc.(a) |
2,976 | 125,081 | ||||||
Peoples Bancorp, Inc. |
5,952 | 180,167 | ||||||
Pinnacle Financial Partners, Inc.(a) |
4,650 | 385,904 | ||||||
PNC Financial Services Group, Inc. (The) |
13,135 | 2,125,637 | ||||||
Popular, Inc.(a) |
17,760 | 1,255,987 | ||||||
Preferred Bank |
1,790 | 137,597 | ||||||
Premier Financial Corp. |
10,974 | 316,600 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 151 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Prosperity Bancshares, Inc.(a) |
20,832 | $ | 1,490,946 | |||||
QCR Holdings, Inc.(a) |
2,046 | 103,753 | ||||||
Regions Financial Corp.(a) |
33,300 | 730,935 | ||||||
Renasant Corp. |
10,545 | 425,702 | ||||||
S&T Bancorp, Inc. |
7,955 | 300,779 | ||||||
Sandy Spring Bancorp, Inc.(a) |
9,114 | 323,000 | ||||||
Seacoast Banking Corp. of Florida(a) |
5,022 | 155,180 | ||||||
ServisFirst Bancshares, Inc.(a) |
1,665 | 125,424 | ||||||
Signature Bank |
1,860 | 294,866 | ||||||
Silvergate Capital Corp., Class A* (a) |
1,116 | 63,344 | ||||||
Simmons First National Corp., Class A |
26,970 | 643,774 | ||||||
Southside Bancshares, Inc.(a) |
744 | 25,475 | ||||||
SouthState Corp. |
16,280 | 1,472,200 | ||||||
Stellar Bancorp, Inc. |
3,675 | 120,687 | ||||||
Stock Yards Bancorp, Inc.(a) |
558 | 43,630 | ||||||
SVB Financial Group* |
1,488 | 343,668 | ||||||
Synovus Financial Corp. |
32,178 | 1,282,293 | ||||||
Texas Capital Bancshares, Inc.* (a) |
10,175 | 610,500 | ||||||
Tompkins Financial Corp.(a) |
186 | 15,408 | ||||||
Towne Bank |
14,136 | 465,640 | ||||||
TriCo Bancshares(a) |
558 | 32,314 | ||||||
Triumph Bancorp, Inc.* (a) |
558 | 28,737 | ||||||
Truist Financial Corp. |
43,709 | 1,957,726 | ||||||
Trustmark Corp. |
5,576 | 203,914 | ||||||
UMB Financial Corp. |
9,065 | 754,389 | ||||||
Umpqua Holdings Corp. |
44,955 | 893,705 | ||||||
United Bankshares, Inc.(a) |
30,132 | 1,276,090 | ||||||
United Community Banks, Inc.(a) |
21,830 | 840,455 | ||||||
Univest Financial Corp. |
5,952 | 167,489 | ||||||
US Bancorp |
44,639 | 1,894,926 | ||||||
Valley National Bancorp(a) |
94,300 | 1,119,341 | ||||||
Veritex Holdings, Inc.(a) |
4,650 | 146,847 | ||||||
Washington Federal, Inc. |
17,020 | 658,674 | ||||||
Washington Trust Bancorp, Inc.(a) |
2,389 | 115,866 | ||||||
Webster Financial Corp. |
7,343 | 398,431 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Wells Fargo & Co. |
123,580 | $ | 5,683,444 | |||||
WesBanco, Inc. |
12,834 | 519,007 | ||||||
Westamerica Bancorp(a) |
2,604 | 163,349 | ||||||
Western Alliance Bancorp |
4,092 | 274,860 | ||||||
Wintrust Financial Corp. |
13,578 | 1,271,172 | ||||||
Zions Bancorp NA |
6,105 | 317,094 | ||||||
90,502,627 | ||||||||
Beverages – 1.3% | ||||||||
Boston Beer Co., Inc. (The), Class A* (a) |
558 | 208,296 | ||||||
Brown-Forman Corp., Class A(a) |
1,488 | 102,330 | ||||||
Brown-Forman Corp., Class B |
5,580 | 379,440 | ||||||
Celsius Holdings, Inc.* (a) |
2,046 | 186,350 | ||||||
Coca-Cola Co. (The) |
103,228 | 6,178,196 | ||||||
Coca-Cola Consolidated, Inc. |
930 | 452,919 | ||||||
Constellation Brands, Inc., Class A |
4,440 | 1,097,035 | ||||||
Keurig Dr Pepper, Inc.(a) |
26,270 | 1,020,327 | ||||||
MGP Ingredients, Inc. |
185 | 20,729 | ||||||
Molson Coors Beverage Co., Class B(a) |
6,882 | 347,059 | ||||||
Monster Beverage Corp.* |
10,230 | 958,755 | ||||||
National Beverage Corp.(a) |
1,116 | 52,921 | ||||||
PepsiCo, Inc. |
36,641 | 6,653,273 | ||||||
Vintage Wine Estates, Inc.* |
1,302 | 3,606 | ||||||
Vita Coco Co., Inc. (The)* |
5,580 | 57,251 | ||||||
17,718,487 | ||||||||
Biotechnology – 2.9% | ||||||||
4D Molecular Therapeutics, Inc.* (a) |
2,232 | 19,329 | ||||||
AbbVie, Inc. |
57,845 | 8,468,508 | ||||||
ACADIA Pharmaceuticals, Inc.* (a) |
9,300 | 149,079 | ||||||
Agios Pharmaceuticals, Inc.* (a) |
5,100 | 140,454 | ||||||
Alector, Inc.* (a) |
5,208 | 47,914 | ||||||
Alkermes plc* |
9,486 | 215,332 | ||||||
Allogene Therapeutics, Inc.* (a) |
186 | 1,916 |
See Accompanying Notes to the Financial Statements.
152 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
Alnylam Pharmaceuticals, Inc.* (a) |
3,330 | $ | 690,176 | |||||
Amgen, Inc. |
17,856 | 4,827,370 | ||||||
Amicus Therapeutics, Inc.* (a) |
7,254 | 72,540 | ||||||
Anavex Life Sciences Corp.* (a) |
21,018 | 255,789 | ||||||
Apellis Pharmaceuticals, Inc.* (a) |
5,735 | 346,910 | ||||||
Arcturus Therapeutics Holdings, Inc.* (a) |
930 | 16,461 | ||||||
Arcus Biosciences, Inc.* (a) |
11,532 | 293,835 | ||||||
Arrowhead Pharmaceuticals, Inc.* (a) |
4,836 | 168,341 | ||||||
Atara Biotherapeutics, Inc.* (a) |
186 | 867 | ||||||
Avid Bioservices, Inc.* (a) |
1,488 | 25,207 | ||||||
Avidity Biosciences, Inc.* |
2,232 | 31,873 | ||||||
Beam Therapeutics, Inc.* (a) |
12,090 | 532,685 | ||||||
BioCryst Pharmaceuticals, Inc.* (a) |
14,694 | 196,165 | ||||||
Biogen, Inc.* |
5,022 | 1,423,436 | ||||||
BioMarin Pharmaceutical, Inc.* |
5,180 | 448,743 | ||||||
Bioxcel Therapeutics, Inc.* (a) |
5,766 | 72,594 | ||||||
Blueprint Medicines Corp.* |
4,092 | 212,129 | ||||||
Bridgebio Pharma, Inc.* (a) |
4,092 | 42,680 | ||||||
CareDx, Inc.* (a) |
2,604 | 51,846 | ||||||
Caribou Biosciences, Inc.* (a) |
1,302 | 12,681 | ||||||
Catalyst Pharmaceuticals, Inc.* |
9,948 | 137,979 | ||||||
Celldex Therapeutics, Inc.* (a) |
1,488 | 52,273 | ||||||
Cerevel Therapeutics Holdings, Inc.* (a) |
3,162 | 88,410 | ||||||
Coherus Biosciences, Inc.* (a) |
7,998 | 69,583 | ||||||
Crinetics Pharmaceuticals, Inc.* (a) |
5,208 | 96,140 | ||||||
CRISPR Therapeutics AG* (a) |
18,685 | 977,973 | ||||||
Cytokinetics, Inc.* (a) |
5,180 | 226,159 | ||||||
Deciphera Pharmaceuticals, Inc.* |
3,162 | 51,288 | ||||||
Denali Therapeutics, Inc.* (a) |
7,400 | 212,232 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
Dynavax Technologies Corp.* (a) |
27,714 | $ | 317,325 | |||||
Editas Medicine, Inc.* (a) |
1,488 | 18,674 | ||||||
Emergent BioSolutions, Inc.* |
11,285 | 235,405 | ||||||
Enanta Pharmaceuticals, Inc.* (a) |
1,860 | 83,905 | ||||||
Exact Sciences Corp.* (a) |
4,650 | 161,727 | ||||||
Exelixis, Inc.* |
18,972 | 314,556 | ||||||
Fate Therapeutics, Inc.* (a) |
4,092 | 85,605 | ||||||
FibroGen, Inc.* |
3,348 | 54,505 | ||||||
Geron Corp.* |
16,182 | 35,924 | ||||||
Gilead Sciences, Inc. |
40,330 | 3,164,292 | ||||||
Gossamer Bio, Inc.* (a) |
1,302 | 14,452 | ||||||
Halozyme Therapeutics, Inc.* (a) |
6,510 | 311,243 | ||||||
Heron Therapeutics, Inc.* (a) |
372 | 1,432 | ||||||
Horizon Therapeutics plc* |
5,180 | 322,818 | ||||||
ImmunoGen, Inc.* (a) |
21,762 | 129,266 | ||||||
Incyte Corp.* |
4,255 | 316,317 | ||||||
Inhibrx, Inc.* (a) |
558 | 17,956 | ||||||
Insmed, Inc.* (a) |
6,324 | 109,532 | ||||||
Intellia Therapeutics, Inc.* (a) |
4,278 | 225,793 | ||||||
Intercept Pharmaceuticals, Inc.* |
6,882 | 95,453 | ||||||
Ionis Pharmaceuticals, Inc.* (a) |
7,440 | 328,848 | ||||||
Iovance Biotherapeutics, Inc.* |
2,976 | 27,796 | ||||||
Ironwood Pharmaceuticals, Inc.* (a) |
23,680 | 259,059 | ||||||
IVERIC bio, Inc.* |
8,695 | 207,984 | ||||||
Karuna Therapeutics, Inc.* (a) |
1,674 | 367,175 | ||||||
Karyopharm Therapeutics, Inc.* |
7,254 | 34,529 | ||||||
Keros Therapeutics, Inc.* (a) |
744 | 37,453 | ||||||
Krystal Biotech, Inc.* (a) |
5,208 | 398,412 | ||||||
Kura Oncology, Inc.* (a) |
18,685 | 289,991 | ||||||
Kymera Therapeutics, Inc.* |
186 | 5,643 | ||||||
Ligand Pharmaceuticals, Inc.* (a) |
744 | 65,212 | ||||||
MacroGenics, Inc.* (a) |
186 | 952 | ||||||
Madrigal Pharmaceuticals, Inc.* (a) |
930 | 65,863 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 153 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
MannKind Corp.* (a) |
7,812 | $ | 26,405 | |||||
MeiraGTx Holdings plc* (a) |
5,208 | 37,862 | ||||||
Mirati Therapeutics, Inc.* (a) |
3,162 | 212,866 | ||||||
Moderna, Inc.* (a) |
11,160 | 1,677,683 | ||||||
Myriad Genetics, Inc.* |
3,162 | 65,580 | ||||||
Natera, Inc.* |
5,394 | 253,302 | ||||||
Neurocrine Biosciences, Inc.* |
2,232 | 256,948 | ||||||
Novavax, Inc.* (a) |
18,600 | 414,222 | ||||||
Ocugen, Inc.* (a) |
67,703 | 116,449 | ||||||
Organogenesis Holdings, Inc.* |
1,674 | 5,491 | ||||||
Prometheus Biosciences, Inc.* (a) |
1,850 | 97,162 | ||||||
Protagonist Therapeutics, Inc.* |
1,674 | 13,559 | ||||||
Prothena Corp. plc* |
1,488 | 91,423 | ||||||
PTC Therapeutics, Inc.* (a) |
3,534 | 133,656 | ||||||
Recursion Pharmaceuticals, Inc., Class A* (a) |
1,302 | 13,736 | ||||||
Regeneron Pharmaceuticals, Inc.* |
3,534 | 2,646,082 | ||||||
REGENXBIO, Inc.* (a) |
9,858 | 233,339 | ||||||
Relay Therapeutics, Inc.* |
4,650 | 103,323 | ||||||
Replimune Group, Inc.* |
10,788 | 198,068 | ||||||
REVOLUTION Medicines, Inc.* (a) |
4,278 | 86,672 | ||||||
Rigel Pharmaceuticals, Inc.* |
20,088 | 14,636 | ||||||
Rocket Pharmaceuticals, Inc.* (a) |
14,136 | 263,778 | ||||||
Sage Therapeutics, Inc.* (a) |
4,440 | 167,210 | ||||||
Sangamo Therapeutics, Inc.* (a) |
3,162 | 13,881 | ||||||
Sarepta Therapeutics, Inc.* (a) |
4,625 | 527,342 | ||||||
Seagen, Inc.* |
3,885 | 494,017 | ||||||
Seres Therapeutics, Inc.* (a) |
2,232 | 19,775 | ||||||
Sorrento Therapeutics, Inc.* (a) |
1,860 | 2,920 | ||||||
Stoke Therapeutics, Inc.* |
2,790 | 41,431 | ||||||
TG Therapeutics, Inc.* |
7,998 | 46,548 | ||||||
Travere Therapeutics, Inc.* |
1,860 | 40,325 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
Twist Bioscience Corp.* (a) |
4,836 | $ | 158,766 | |||||
Ultragenyx Pharmaceutical, Inc.* (a) |
3,348 | 135,460 | ||||||
uniQure NV* |
10,602 | 197,409 | ||||||
United Therapeutics Corp.* |
1,850 | 426,480 | ||||||
Vanda Pharmaceuticals, Inc.* |
1,302 | 13,632 | ||||||
Vaxart, Inc.* (a) |
186 | 311 | ||||||
Veracyte, Inc.* (a) |
3,534 | 71,069 | ||||||
Vericel Corp.* (a) |
1,674 | 44,997 | ||||||
Vertex Pharmaceuticals, Inc.* |
7,030 | 2,193,360 | ||||||
Vir Biotechnology, Inc.* (a) |
17,484 | 384,298 | ||||||
Xencor, Inc.* (a) |
2,046 | 57,288 | ||||||
Y-mAbs Therapeutics, Inc.* (a) |
4,278 | 15,444 | ||||||
40,796,199 | ||||||||
Building Products – 0.7% | ||||||||
A O Smith Corp.(a) |
3,534 | 193,593 | ||||||
AAON, Inc.(a) |
2,604 | 167,932 | ||||||
Advanced Drainage Systems, Inc. |
1,674 | 193,983 | ||||||
Allegion plc(a) |
1,665 | 174,442 | ||||||
American Woodmark Corp.* |
1,674 | 75,916 | ||||||
Apogee Enterprises, Inc.(a) |
2,960 | 135,805 | ||||||
Armstrong World Industries, Inc. |
2,046 | 154,616 | ||||||
AZEK Co., Inc. (The)* (a) |
4,650 | 81,421 | ||||||
Builders FirstSource, Inc.* (a) |
6,386 | 393,761 | ||||||
Carlisle Cos., Inc. |
1,488 | 355,334 | ||||||
Carrier Global Corp. |
24,180 | 961,397 | ||||||
Fortune Brands Home & Security, Inc. |
4,278 | 258,049 | ||||||
Gibraltar Industries, Inc.* |
930 | 47,504 | ||||||
Griffon Corp. |
10,602 | 340,748 | ||||||
Hayward Holdings, Inc.* (a) |
18,685 | 172,836 | ||||||
Insteel Industries, Inc. |
186 | 4,901 | ||||||
JELD-WEN Holding, Inc.* |
18,786 | 199,319 | ||||||
Johnson Controls International plc |
22,692 | 1,312,505 | ||||||
Lennox International, Inc. |
1,140 | 266,270 | ||||||
Masco Corp.(a) |
7,440 | 344,249 |
See Accompanying Notes to the Financial Statements.
154 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Building Products – (continued) | ||||||||
Masonite International Corp.* |
4,070 | $ | 291,127 | |||||
Owens Corning(a) |
4,092 | 350,316 | ||||||
PGT Innovations, Inc.* (a) |
14,880 | 317,093 | ||||||
Quanex Building Products Corp.(a) |
4,650 | 103,044 | ||||||
Resideo Technologies, Inc.* |
31,062 | 733,684 | ||||||
Simpson Manufacturing Co., Inc. |
1,674 | 143,094 | ||||||
Trane Technologies plc |
5,952 | 950,118 | ||||||
Trex Co., Inc.* |
3,534 | 169,950 | ||||||
UFP Industries, Inc. |
13,764 | 980,410 | ||||||
Zurn Elkay Water Solutions Corp.(a) |
4,836 | 113,598 | ||||||
9,987,015 | ||||||||
Capital Markets – 3.1% | ||||||||
Affiliated Managers Group, Inc. |
9,237 | 1,146,866 | ||||||
Ameriprise Financial, Inc.(a) |
3,885 | 1,200,931 | ||||||
Ares Management Corp. |
3,720 | 282,088 | ||||||
Artisan Partners Asset Management, Inc., Class A(a) |
14,880 | 424,229 | ||||||
B. Riley Financial, Inc.(a) |
3,906 | 158,896 | ||||||
Bank of New York Mellon Corp. (The) |
24,738 | 1,041,717 | ||||||
BGC Partners, Inc., Class A |
68,261 | 270,314 | ||||||
BlackRock, Inc. |
4,978 | 3,215,340 | ||||||
Blackstone, Inc., Class A(a) |
18,228 | 1,661,300 | ||||||
Blucora, Inc.* |
14,245 | 313,817 | ||||||
Blue Owl Capital, Inc.(a) |
20,088 | 201,282 | ||||||
Brightsphere Investment Group, Inc.(a) |
5,580 | 105,016 | ||||||
Carlyle Group, Inc. (The) |
4,995 | 141,259 | ||||||
Charles Schwab Corp. (The) |
40,361 | 3,215,561 | ||||||
CME Group, Inc. |
9,672 | 1,676,158 | ||||||
Cohen & Steers, Inc.(a) |
744 | 44,759 | ||||||
Coinbase Global, Inc., Class A* (a) |
5,735 | 379,944 | ||||||
Cowen, Inc., Class A(a) |
7,770 | 300,077 | ||||||
Donnelley Financial Solutions, Inc.* (a) |
6,324 | 255,679 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Evercore, Inc., Class A |
8,742 | $ | 918,784 | |||||
FactSet Research Systems, Inc. |
930 | 395,706 | ||||||
Federated Hermes, Inc., Class B(a) |
20,832 | 723,912 | ||||||
Focus Financial Partners, Inc., Class A* (a) |
13,950 | 485,320 | ||||||
Franklin Resources, Inc.(a) |
10,974 | 257,340 | ||||||
GCM Grosvenor, Inc., Class A(a) |
16,368 | 135,363 | ||||||
Goldman Sachs Group, Inc. (The) |
11,100 | 3,824,061 | ||||||
Hamilton Lane, Inc., Class A |
925 | 55,333 | ||||||
Houlihan Lokey, Inc. |
1,860 | 166,135 | ||||||
Interactive Brokers Group, Inc., Class A |
4,440 | 355,866 | ||||||
Intercontinental Exchange, Inc. |
14,060 | 1,343,714 | ||||||
Invesco Ltd.(a) |
14,694 | 225,112 | ||||||
Janus Henderson Group plc(a) |
32,005 | 728,754 | ||||||
Jefferies Financial Group, Inc. |
8,325 | 286,463 | ||||||
KKR & Co., Inc. |
19,344 | 940,699 | ||||||
LPL Financial Holdings, Inc. |
2,405 | 614,838 | ||||||
MarketAxess Holdings, Inc. |
930 | 226,957 | ||||||
Moelis & Co., Class A(a) |
3,534 | 150,054 | ||||||
Moody’s Corp. |
3,885 | 1,029,020 | ||||||
Morgan Stanley |
44,955 | 3,693,952 | ||||||
Morningstar, Inc. |
558 | 129,556 | ||||||
MSCI, Inc. |
2,046 | 959,288 | ||||||
Nasdaq, Inc. |
8,928 | 555,679 | ||||||
Northern Trust Corp.(c) |
6,696 | 564,807 | ||||||
Open Lending Corp., Class A* |
12,462 | 89,353 | ||||||
Oppenheimer Holdings, Inc., Class A |
372 | 12,804 | ||||||
Piper Sandler Cos.(a) |
3,348 | 428,444 | ||||||
PJT Partners, Inc., Class A(a) |
372 | 27,677 | ||||||
Raymond James Financial, Inc.(a) |
7,068 | 835,013 | ||||||
S&P Global, Inc. |
8,928 | 2,868,120 | ||||||
SEI Investments Co. |
3,162 | 171,697 | ||||||
State Street Corp. |
11,346 | 839,604 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 155 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
StepStone Group, Inc., Class A(a) |
3,534 | $ | 104,324 | |||||
Stifel Financial Corp.(a) |
22,755 | 1,407,852 | ||||||
StoneX Group, Inc.* |
4,625 | 431,605 | ||||||
T. Rowe Price Group, Inc.(a) |
7,998 | 849,068 | ||||||
TPG, Inc.(a) |
2,418 | 74,353 | ||||||
Tradeweb Markets, Inc., Class A |
1,850 | 101,898 | ||||||
Victory Capital Holdings, Inc., Class A |
5,952 | 172,132 | ||||||
Virtu Financial, Inc., Class A |
20,460 | 457,895 | ||||||
Virtus Investment Partners, Inc.(a) |
1,488 | 255,177 | ||||||
WisdomTree Investments, Inc.(a) |
186 | 1,010 | ||||||
43,929,972 | ||||||||
Chemicals – 1.8% | ||||||||
AdvanSix, Inc. |
8,325 | 302,863 | ||||||
Air Products and Chemicals, Inc. |
5,952 | 1,490,381 | ||||||
Albemarle Corp.(a) |
3,162 | 884,949 | ||||||
Amyris, Inc.* (a) |
7,998 | 22,474 | ||||||
Ashland, Inc. |
2,046 | 214,666 | ||||||
Avient Corp. |
2,976 | 102,642 | ||||||
Axalta Coating Systems Ltd.* |
9,486 | 221,214 | ||||||
Balchem Corp.(a) |
2,046 | 286,031 | ||||||
Cabot Corp.(a) |
13,020 | 956,710 | ||||||
Celanese Corp. |
3,720 | 357,566 | ||||||
CF Industries Holdings, Inc. |
7,215 | 766,666 | ||||||
Chase Corp.(a) |
186 | 17,523 | ||||||
Chemours Co. (The)(a) |
37,185 | 1,064,607 | ||||||
Corteva, Inc. |
17,856 | 1,166,711 | ||||||
Danimer Scientific, Inc.* (a) |
5,766 | 15,107 | ||||||
Diversey Holdings Ltd.* (a) |
12,090 | 65,286 | ||||||
Dow, Inc.(a) |
22,506 | 1,051,930 | ||||||
DuPont de Nemours, Inc. |
12,025 | 687,830 | ||||||
Eastman Chemical Co.(a) |
4,278 | 328,593 | ||||||
Ecolab, Inc. |
6,510 | 1,022,526 | ||||||
Ecovyst, Inc.* |
1,302 | 12,955 | ||||||
Element Solutions, Inc.(a) |
14,322 | 246,338 | ||||||
FMC Corp. |
3,885 | 461,926 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Ginkgo Bioworks Holdings, Inc.* (a) |
59,705 | $ | 162,995 | |||||
Hawkins, Inc. |
558 | 25,127 | ||||||
HB Fuller Co.(a) |
1,674 | 116,695 | ||||||
Huntsman Corp.(a) |
40,145 | 1,074,280 | ||||||
Ingevity Corp.* |
8,928 | 600,587 | ||||||
Innospec, Inc. |
744 | 74,393 | ||||||
International Flavors & Fragrances, Inc. |
6,882 | 671,752 | ||||||
Intrepid Potash, Inc.* (a) |
2,046 | 92,582 | ||||||
Koppers Holdings, Inc.(a) |
1,480 | 36,941 | ||||||
Kronos Worldwide, Inc.(a) |
4,650 | 44,175 | ||||||
Linde plc(a) |
12,950 | 3,850,682 | ||||||
Livent Corp.* (a) |
7,812 | 246,625 | ||||||
LyondellBasell Industries NV, Class A |
8,370 | 639,886 | ||||||
Mativ Holdings, Inc.(a) |
9,341 | 221,755 | ||||||
Minerals Technologies, Inc.(a) |
8,184 | 450,202 | ||||||
Mosaic Co. (The) |
11,532 | 619,845 | ||||||
NewMarket Corp. |
1,295 | 394,120 | ||||||
Olin Corp. |
5,920 | 313,464 | ||||||
Perimeter Solutions SA* (a) |
10,230 | 81,738 | ||||||
PPG Industries, Inc. |
6,510 | 743,312 | ||||||
Quaker Chemical Corp.(a) |
930 | 151,255 | ||||||
RPM International, Inc. |
2,976 | 281,440 | ||||||
Scotts Miracle-Gro Co. (The)(a) |
2,604 | 119,550 | ||||||
Sensient Technologies Corp.(a) |
1,302 | 93,041 | ||||||
Sherwin-Williams Co. (The) |
6,324 | 1,423,090 | ||||||
Stepan Co.(a) |
1,860 | 194,258 | ||||||
Tredegar Corp.(a) |
10,044 | 109,379 | ||||||
Trinseo plc(a) |
7,998 | 150,522 | ||||||
Tronox Holdings plc |
23,436 | 281,232 | ||||||
Valvoline, Inc. |
8,742 | 256,665 | ||||||
Westlake Corp.(a) |
372 | 35,954 | ||||||
25,305,036 | ||||||||
Commercial Services & Supplies – 0.6% | ||||||||
ABM Industries, Inc. |
2,046 | 91,067 | ||||||
ACCO Brands Corp. |
27,528 | 126,629 | ||||||
ACV Auctions, Inc., Class A* (a) |
5,022 | 45,801 |
See Accompanying Notes to the Financial Statements.
156 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Commercial Services & Supplies – (continued) | ||||||||
Brady Corp., Class A(a) |
1,116 | $ | 51,057 | |||||
BrightView Holdings, Inc.* |
7,626 | 68,024 | ||||||
Brink’s Co. (The)(a) |
10,788 | 643,288 | ||||||
Casella Waste Systems, Inc., Class A* (a) |
2,232 | 182,600 | ||||||
Cimpress plc* |
6,324 | 147,223 | ||||||
Cintas Corp. |
2,232 | 954,292 | ||||||
Clean Harbors, Inc.* |
2,035 | 249,206 | ||||||
Copart, Inc.* |
5,920 | 680,918 | ||||||
CoreCivic, Inc., REIT* (a) |
29,016 | 303,798 | ||||||
Deluxe Corp.(a) |
10,416 | 191,446 | ||||||
Driven Brands Holdings, Inc.* (a) |
3,534 | 113,017 | ||||||
Ennis, Inc. |
9,381 | 211,635 | ||||||
GEO Group, Inc. (The)* (a) |
19,425 | 164,335 | ||||||
Harsco Corp.* (a) |
2,976 | 15,743 | ||||||
Healthcare Services Group, Inc.(a) |
5,394 | 75,300 | ||||||
HNI Corp. |
3,720 | 107,843 | ||||||
IAA, Inc.* (a) |
7,812 | 296,309 | ||||||
Interface, Inc.(a) |
8,370 | 94,665 | ||||||
KAR Auction Services, Inc.* (a) |
3,330 | 48,385 | ||||||
Matthews International Corp., Class A(a) |
5,580 | 149,990 | ||||||
MillerKnoll, Inc. |
2,232 | 47,274 | ||||||
Montrose Environmental Group, Inc.* (a) |
186 | 8,143 | ||||||
MSA Safety, Inc. |
2,405 | 322,847 | ||||||
Pitney Bowes, Inc. |
18,786 | 58,424 | ||||||
Republic Services, Inc. |
5,580 | 740,020 | ||||||
Rollins, Inc.(a) |
6,882 | 289,595 | ||||||
SP Plus Corp.* |
4,092 | 151,527 | ||||||
Steelcase, Inc., Class A |
8,184 | 63,590 | ||||||
Stericycle, Inc.* (a) |
5,920 | 263,914 | ||||||
Tetra Tech, Inc. |
1,860 | 262,781 | ||||||
UniFirst Corp.(a) |
1,116 | 205,355 | ||||||
Viad Corp.* (a) |
2,418 | 90,143 | ||||||
Waste Management, Inc.(a) |
10,044 | 1,590,668 | ||||||
9,106,852 |
Investments | Shares | Value | ||||||
Communications Equipment – 0.8% | ||||||||
ADTRAN Holdings, Inc.(a) |
4,092 | $ | 91,906 | |||||
Arista Networks, Inc.* (a) |
5,920 | 715,491 | ||||||
Calix, Inc.* (a) |
3,906 | 287,638 | ||||||
Cambium Networks Corp.* (a) |
558 | 10,797 | ||||||
Casa Systems, Inc.* (a) |
4,836 | 15,233 | ||||||
Ciena Corp.* (a) |
3,906 | 187,097 | ||||||
Cisco Systems, Inc. |
137,637 | 6,252,849 | ||||||
CommScope Holding Co., Inc.* (a) |
46,313 | 613,184 | ||||||
Comtech Telecommunications Corp.(a) |
4,836 | 53,438 | ||||||
Digi International, Inc.* (a) |
3,720 | 150,028 | ||||||
Extreme Networks, Inc.* |
12,462 | 223,568 | ||||||
F5, Inc.* (a) |
1,488 | 212,650 | ||||||
Harmonic, Inc.* (a) |
2,790 | 43,106 | ||||||
Infinera Corp.* (a) |
7,254 | 40,695 | ||||||
Juniper Networks, Inc. |
12,834 | 392,720 | ||||||
Lumentum Holdings, Inc.* (a) |
2,775 | 206,599 | ||||||
Motorola Solutions, Inc. |
4,650 | 1,161,152 | ||||||
NETGEAR, Inc.* |
7,626 | 149,851 | ||||||
NetScout Systems, Inc.* |
5,824 | 209,198 | ||||||
Ribbon Communications, Inc.* (a) |
28,458 | 75,414 | ||||||
Viasat, Inc.* (a) |
3,348 | 137,134 | ||||||
Viavi Solutions, Inc.* (a) |
7,215 | 108,947 | ||||||
11,338,695 | ||||||||
Construction & Engineering – 0.4% | ||||||||
AECOM(a) |
4,705 | 354,192 | ||||||
Ameresco, Inc., Class A* |
1,302 | 78,745 | ||||||
API Group Corp.* (a) |
6,105 | 100,671 | ||||||
Arcosa, Inc.(a) |
1,488 | 95,530 | ||||||
Argan, Inc.(a) |
1,860 | 64,486 | ||||||
Comfort Systems USA, Inc.(a) |
2,604 | 321,021 | ||||||
Construction Partners, Inc., Class A* (a) |
930 | 28,960 | ||||||
Dycom Industries, Inc.* |
1,488 | 175,852 | ||||||
EMCOR Group, Inc. |
3,145 | 443,760 | ||||||
Fluor Corp.* (a) |
6,324 | 191,364 | ||||||
Granite Construction, Inc.(a) |
3,720 | 125,476 | ||||||
Great Lakes Dredge & Dock Corp.* |
8,556 | 64,683 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 157 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
IES Holdings, Inc.* (a) |
2,604 | $ | 86,036 | |||||
MasTec, Inc.* (a) |
12,143 | 935,982 | ||||||
MDU Resources Group, Inc. |
45,941 | 1,308,400 | ||||||
MYR Group, Inc.* |
1,674 | 146,492 | ||||||
NV5 Global, Inc.* (a) |
185 | 26,816 | ||||||
Primoris Services Corp. |
11,346 | 229,076 | ||||||
Quanta Services, Inc.(a) |
4,255 | 604,380 | ||||||
Sterling Infrastructure, Inc.* (a) |
6,510 | 175,705 | ||||||
Tutor Perini Corp.* |
3,534 | 26,222 | ||||||
Valmont Industries, Inc. |
925 | 295,279 | ||||||
WillScot Mobile Mini Holdings Corp.* (a) |
7,415 | 315,360 | ||||||
6,194,488 | ||||||||
Construction Materials – 0.1% | ||||||||
Eagle Materials, Inc.(a) |
1,860 | 227,497 | ||||||
Martin Marietta Materials, Inc. |
1,674 | 562,430 | ||||||
Summit Materials, Inc., Class A* (a) |
5,394 | 142,132 | ||||||
Vulcan Materials Co. |
3,348 | 548,068 | ||||||
1,480,127 | ||||||||
Consumer Finance – 0.8% | ||||||||
Ally Financial, Inc. |
12,395 | 341,606 | ||||||
American Express Co. |
16,280 | 2,416,766 | ||||||
Atlanticus Holdings Corp.* (a) |
558 | 15,936 | ||||||
Bread Financial Holdings, Inc. |
9,250 | 334,017 | ||||||
Capital One Financial Corp. |
13,415 | 1,422,258 | ||||||
Credit Acceptance Corp.* (a) |
301 | 140,152 | ||||||
Curo Group Holdings Corp.(a) |
3,906 | 20,194 | ||||||
Discover Financial Services |
8,325 | 869,630 | ||||||
Encore Capital Group, Inc.* (a) |
6,845 | 348,547 | ||||||
Enova International, Inc.* |
7,998 | 299,845 | ||||||
EZCORP, Inc., Class A* (a) |
3,700 | 35,742 | ||||||
FirstCash Holdings, Inc. |
1,488 | 146,494 | ||||||
Green Dot Corp., Class A* |
13,020 | 247,771 |
Investments | Shares | Value | ||||||
Consumer Finance – (continued) | ||||||||
LendingClub Corp.* (a) |
23,436 | $ | 249,359 | |||||
LendingTree, Inc.* (a) |
558 | 14,078 | ||||||
Moneylion, Inc.* (a) |
18,600 | 20,832 | ||||||
Navient Corp.(a) |
25,296 | 382,981 | ||||||
Nelnet, Inc., Class A(a) |
4,650 | 414,269 | ||||||
OneMain Holdings, Inc.(a) |
25,900 | 998,704 | ||||||
PROG Holdings, Inc.* |
7,812 | 129,054 | ||||||
Regional Management Corp. |
744 | 25,266 | ||||||
SLM Corp.(a) |
61,786 | 1,025,030 | ||||||
SoFi Technologies, Inc.* (a) |
41,663 | 226,647 | ||||||
Synchrony Financial |
15,996 | 568,818 | ||||||
Upstart Holdings, Inc.* (a) |
3,348 | 77,607 | ||||||
World Acceptance Corp.* |
372 | 30,214 | ||||||
10,801,817 | ||||||||
Containers & Packaging – 0.6% | ||||||||
Amcor plc(a) |
52,079 | 603,075 | ||||||
AptarGroup, Inc.(a) |
2,232 | 221,303 | ||||||
Avery Dennison Corp. |
1,860 | 315,363 | ||||||
Ball Corp.(a) |
8,370 | 413,394 | ||||||
Berry Global Group, Inc.* |
5,365 | 253,872 | ||||||
Crown Holdings, Inc.(a) |
4,625 | 317,229 | ||||||
Graphic Packaging Holding Co. |
66,415 | 1,524,888 | ||||||
Greif, Inc., Class A(a) |
6,138 | 406,397 | ||||||
International Paper Co. |
12,276 | 412,596 | ||||||
Myers Industries, Inc. |
186 | 3,774 | ||||||
O-I Glass, Inc.* |
31,434 | 512,689 | ||||||
Packaging Corp. of America |
3,162 | 380,104 | ||||||
Pactiv Evergreen, Inc. |
9,114 | 99,434 | ||||||
Ranpak Holdings Corp.* |
4,278 | 16,256 | ||||||
Sealed Air Corp. |
5,200 | 247,624 | ||||||
Silgan Holdings, Inc.(a) |
18,042 | 854,469 | ||||||
Sonoco Products Co.(a) |
20,905 | 1,297,782 | ||||||
TriMas Corp.(a) |
1,488 | 34,001 | ||||||
Westrock Co. |
9,114 | 310,423 | ||||||
8,224,673 | ||||||||
Distributors – 0.1% | ||||||||
Funko, Inc., Class A* (a) |
4,625 | 95,506 | ||||||
Genuine Parts Co. |
4,650 | 827,049 | ||||||
LKQ Corp. |
10,044 | 558,848 | ||||||
Pool Corp. |
930 | 282,934 | ||||||
1,764,337 |
See Accompanying Notes to the Financial Statements.
158 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Consumer Services – 0.3% | ||||||||
2U, Inc.* (a) |
21,762 | $ | 134,707 | |||||
ADT, Inc.(a) |
52,823 | 446,882 | ||||||
Adtalem Global Education, Inc.* (a) |
8,325 | 347,152 | ||||||
American Public Education, Inc.* (a) |
2,232 | 28,592 | ||||||
Bright Horizons Family Solutions, Inc.* |
1,302 | 85,047 | ||||||
Chegg, Inc.* (a) |
7,812 | 168,505 | ||||||
Coursera, Inc.* (a) |
9,858 | 127,070 | ||||||
Duolingo, Inc.* |
1,302 | 106,556 | ||||||
Frontdoor, Inc.* |
4,650 | 102,579 | ||||||
Graham Holdings Co., Class B(a) |
930 | 580,199 | ||||||
Grand Canyon Education, Inc.* |
1,295 | 130,316 | ||||||
H&R Block, Inc.(a) |
37,555 | 1,545,388 | ||||||
Laureate Education, Inc., Class A |
9,990 | 126,274 | ||||||
OneSpaWorld Holdings Ltd.* (a) |
9,486 | 86,038 | ||||||
Perdoceo Education Corp.* (a) |
13,020 | 148,819 | ||||||
PowerSchool Holdings, Inc., Class A* (a) |
2,232 | 44,640 | ||||||
Service Corp. International(a) |
4,836 | 293,110 | ||||||
Strategic Education, Inc.(a) |
1,860 | 128,340 | ||||||
Stride, Inc.* (a) |
4,034 | 135,179 | ||||||
Udemy, Inc.* (a) |
1,488 | 21,650 | ||||||
Vivint Smart Home, Inc.* |
3,906 | 29,881 | ||||||
WW International, Inc.* (a) |
13,950 | 63,054 | ||||||
4,879,978 | ||||||||
Diversified Financial Services – 1.4% | ||||||||
A-Mark Precious Metals, Inc.(a) |
2,976 | 90,500 | ||||||
Apollo Global Management, Inc. |
13,020 | 720,787 | ||||||
Berkshire Hathaway, Inc., Class B* |
59,705 | 17,618,348 | ||||||
Cannae Holdings, Inc.* |
930 | 21,539 | ||||||
Compass Diversified Holdings |
3,534 | 75,204 |
Investments | Shares | Value | ||||||
Diversified Financial Services – (continued) | ||||||||
Equitable Holdings, Inc. |
13,875 | $ | 424,853 | |||||
Jackson Financial, Inc., Class A(a) |
11,470 | 439,989 | ||||||
Voya Financial, Inc.(a) |
4,440 | 303,518 | ||||||
19,694,738 | ||||||||
Diversified Telecommunication Services – 0.8% | ||||||||
Anterix, Inc.* |
186 | 7,133 | ||||||
AT&T, Inc. |
239,190 | 4,360,434 | ||||||
ATN International, Inc.(a) |
740 | 31,909 | ||||||
Bandwidth, Inc., Class A* (a) |
186 | 2,208 | ||||||
Cogent Communications Holdings, Inc. |
930 | 48,834 | ||||||
Consolidated Communications Holdings, Inc.* (a) |
14,136 | 73,083 | ||||||
Globalstar, Inc.* (a) |
22,134 | 48,031 | ||||||
IDT Corp., Class B* |
3,348 | 87,249 | ||||||
Iridium Communications, Inc.* (a) |
7,440 | 383,383 | ||||||
Liberty Latin America Ltd., Class A* |
8,928 | 69,460 | ||||||
Liberty Latin America Ltd., Class C* |
44,030 | 342,993 | ||||||
Lumen Technologies, Inc.(a) |
27,528 | 202,606 | ||||||
Radius Global Infrastructure, Inc.* (a) |
5,580 | 52,173 | ||||||
Verizon Communications, Inc. |
136,900 | 5,115,953 | ||||||
10,825,449 | ||||||||
Electric Utilities – 1.5% | ||||||||
ALLETE, Inc.(a) |
1,850 | 104,099 | ||||||
Alliant Energy Corp.(a) |
7,812 | 407,552 | ||||||
American Electric Power Co., Inc. |
16,368 | 1,439,075 | ||||||
Avangrid, Inc. |
1,674 | 68,098 | ||||||
Constellation Energy Corp.(a) |
7,770 | 734,576 | ||||||
Duke Energy Corp. |
24,738 | 2,305,087 | ||||||
Edison International |
11,655 | 699,766 | ||||||
Entergy Corp. |
6,105 | 654,090 | ||||||
Evergy, Inc. |
6,475 | 395,817 | ||||||
Eversource Energy |
9,486 | 723,592 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 159 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
Exelon Corp. |
31,806 | $ | 1,227,394 | |||||
FirstEnergy Corp. |
18,228 | 687,378 | ||||||
Hawaiian Electric Industries, Inc. |
6,696 | 254,716 | ||||||
IDACORP, Inc. |
2,976 | 311,587 | ||||||
MGE Energy, Inc. |
1,116 | 75,988 | ||||||
NextEra Energy, Inc. |
51,521 | 3,992,878 | ||||||
NRG Energy, Inc.(a) |
9,486 | 421,178 | ||||||
OGE Energy Corp. |
8,403 | 307,802 | ||||||
Otter Tail Corp. |
1,295 | 87,309 | ||||||
PG&E Corp.* (a) |
47,730 | 712,609 | ||||||
Pinnacle West Capital Corp. |
3,906 | 262,522 | ||||||
PNM Resources, Inc. |
5,208 | 242,016 | ||||||
Portland General Electric Co.(a) |
21,663 | 973,535 | ||||||
PPL Corp. |
17,205 | 455,760 | ||||||
Southern Co. (The) |
34,967 | 2,289,639 | ||||||
Xcel Energy, Inc. |
15,252 | 993,058 | ||||||
20,827,121 | ||||||||
Electrical Equipment – 0.8% | ||||||||
Acuity Brands, Inc.(a) |
2,220 | 407,525 | ||||||
AMETEK, Inc. |
5,550 | 719,613 | ||||||
Array Technologies, Inc.* (a) |
31,434 | 568,955 | ||||||
Atkore, Inc.* (a) |
10,224 | 974,347 | ||||||
Blink Charging Co.* (a) |
2,046 | 30,281 | ||||||
Bloom Energy Corp., Class A* (a) |
7,440 | 139,202 | ||||||
ChargePoint Holdings, Inc.* (a) |
10,602 | 148,216 | ||||||
Eaton Corp. plc |
10,602 | 1,591,042 | ||||||
Emerson Electric Co. |
18,600 | 1,610,760 | ||||||
Encore Wire Corp.(a) |
4,278 | 588,610 | ||||||
EnerSys(a) |
1,116 | 73,980 | ||||||
Enovix Corp.* (a) |
24,180 | 456,277 | ||||||
Fluence Energy, Inc.* (a) |
7,254 | 108,302 | ||||||
FuelCell Energy, Inc.* (a) |
19,716 | 61,514 | ||||||
Generac Holdings, Inc.* |
1,674 | 194,033 | ||||||
GrafTech International Ltd. |
40,547 | 206,384 | ||||||
Hubbell, Inc.(a) |
1,302 | 309,199 | ||||||
nVent Electric plc(a) |
10,602 | 386,973 | ||||||
Plug Power, Inc.* (a) |
16,368 | 261,561 |
Investments | Shares | Value | ||||||
Electrical Equipment – (continued) | ||||||||
Regal Rexnord Corp.(a) |
2,232 | $ | 282,437 | |||||
Rockwell Automation, Inc.(a) |
2,976 | 759,773 | ||||||
Sensata Technologies Holding plc |
6,138 | 246,809 | ||||||
Shoals Technologies Group, Inc., Class A* (a) |
6,324 | 146,148 | ||||||
Stem, Inc.* (a) |
10,788 | 146,717 | ||||||
SunPower Corp.* (a) |
6,510 | 120,370 | ||||||
Sunrun, Inc.* (a) |
47,801 | 1,076,001 | ||||||
TPI Composites, Inc.* (a) |
2,976 | 29,641 | ||||||
Vertiv Holdings Co.(a) |
17,298 | 247,534 | ||||||
Vicor Corp.* |
744 | 35,541 | ||||||
11,927,745 | ||||||||
Electronic Equipment, Instruments & Components – 1.1% | ||||||||
Advanced Energy Industries, Inc. |
1,116 | 87,773 | ||||||
Aeva Technologies, Inc.* (a) |
22,134 | 44,268 | ||||||
Amphenol Corp., Class A |
14,800 | 1,122,284 | ||||||
Arrow Electronics, Inc.* |
2,775 | 280,997 | ||||||
Avnet, Inc. |
21,576 | 867,139 | ||||||
Badger Meter, Inc.(a) |
2,232 | 251,055 | ||||||
Belden, Inc. |
9,858 | 686,413 | ||||||
Benchmark Electronics, Inc. |
8,928 | 253,466 | ||||||
CDW Corp. |
3,348 | 578,568 | ||||||
Cognex Corp. |
4,092 | 189,173 | ||||||
Coherent Corp.* (a) |
5,181 | 174,119 | ||||||
Corning, Inc. |
25,668 | 825,740 | ||||||
CTS Corp.(a) |
930 | 36,754 | ||||||
ePlus, Inc.* (a) |
2,790 | 135,929 | ||||||
Fabrinet* (a) |
2,232 | 255,341 | ||||||
FARO Technologies, Inc.* (a) |
372 | 10,866 | ||||||
Flex Ltd.* |
18,786 | 367,830 | ||||||
Insight Enterprises, Inc.* (a) |
7,786 | 735,855 | ||||||
IPG Photonics Corp.* (a) |
2,604 | 223,059 | ||||||
Itron, Inc.* |
2,046 | 100,029 | ||||||
Jabil, Inc. |
5,735 | 368,474 | ||||||
Keysight Technologies, Inc.* |
4,836 | 842,189 | ||||||
Kimball Electronics, Inc.* (a) |
2,035 | 42,063 | ||||||
Knowles Corp.* (a) |
2,790 | 38,363 | ||||||
Lightwave Logic, Inc.* (a) |
930 | 7,877 | ||||||
Littelfuse, Inc.(a) |
1,302 | 286,766 | ||||||
Methode Electronics, Inc. |
3,700 | 152,551 |
See Accompanying Notes to the Financial Statements.
160 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components
– (continued) |
||||||||
MicroVision, Inc.* (a) |
8,370 | $ | 30,634 | |||||
Mirion Technologies, Inc.* (a) |
29,388 | 237,455 | ||||||
National Instruments Corp.(a) |
8,742 | 333,770 | ||||||
nLight, Inc.* |
1,116 | 12,019 | ||||||
Novanta, Inc.* |
2,046 | 289,304 | ||||||
OSI Systems, Inc.* |
555 | 45,610 | ||||||
PAR Technology Corp.* (a) |
2,976 | 85,649 | ||||||
PC Connection, Inc.(a) |
186 | 9,884 | ||||||
Plexus Corp.* |
740 | 72,816 | ||||||
Sanmina Corp.* |
14,644 | 820,796 | ||||||
ScanSource, Inc.* |
4,278 | 132,532 | ||||||
TD SYNNEX Corp.(a) |
744 | 68,083 | ||||||
TE Connectivity Ltd. |
10,788 | 1,318,617 | ||||||
Teledyne Technologies, Inc.* |
1,302 | 518,170 | ||||||
Trimble, Inc.* |
6,696 | 402,831 | ||||||
TTM Technologies, Inc.* |
22,506 | 344,567 | ||||||
Velodyne Lidar, Inc.* (a) |
372 | 367 | ||||||
Vishay Intertechnology, Inc.(a) |
27,528 | 575,611 | ||||||
Vontier Corp. |
4,995 | 95,405 | ||||||
Zebra Technologies Corp., Class A* |
1,665 | 471,561 | ||||||
14,830,622 | ||||||||
Energy Equipment & Services – 0.5% | ||||||||
Archrock, Inc.(a) |
13,950 | 104,765 | ||||||
Baker Hughes Co. |
24,552 | 679,108 | ||||||
Cactus, Inc., Class A(a) |
4,650 | 240,498 | ||||||
ChampionX Corp. |
13,764 | 393,926 | ||||||
Core Laboratories NV(a) |
2,418 | 47,054 | ||||||
Dril-Quip, Inc.* (a) |
186 | 4,628 | ||||||
Halliburton Co. |
21,645 | 788,311 | ||||||
Helix Energy Solutions Group, Inc.* (a) |
41,291 | 289,037 | ||||||
Helmerich & Payne, Inc.(a) |
7,030 | 348,055 | ||||||
Liberty Energy, Inc., Class A* |
8,184 | 138,391 | ||||||
Nabors Industries Ltd.* (a) |
925 | 161,023 | ||||||
NexTier Oilfield Solutions, Inc.* |
15,910 | 160,373 | ||||||
Noble Corp. plc* (a) |
5,732 | 206,581 |
Investments | Shares | Value | ||||||
Energy Equipment & Services – (continued) | ||||||||
NOV, Inc.(a) |
24,790 | $ | 555,296 | |||||
Oceaneering International, Inc.* |
10,974 | 153,526 | ||||||
Oil States International, Inc.* (a) |
558 | 3,610 | ||||||
Patterson-UTI Energy, Inc.(a) |
7,030 | 124,080 | ||||||
ProPetro Holding Corp.* |
12,210 | 144,566 | ||||||
RPC, Inc.(a) |
13,320 | 148,252 | ||||||
Schlumberger NV(a) |
35,705 | 1,857,731 | ||||||
Select Energy Services, Inc., Class A* |
13,505 | 130,323 | ||||||
Transocean Ltd.* (a) |
125,985 | 463,625 | ||||||
US Silica Holdings, Inc.* |
5,766 | 82,973 | ||||||
Weatherford International plc* |
14,322 | 596,941 | ||||||
7,822,673 | ||||||||
Entertainment – 1.1% | ||||||||
Activision Blizzard, Inc. |
18,315 | 1,333,332 | ||||||
AMC Entertainment Holdings, Inc., Class A* (a) |
10,044 | 66,893 | ||||||
Cinemark Holdings, Inc.* (a) |
3,720 | 39,469 | ||||||
Electronic Arts, Inc. |
6,660 | 838,894 | ||||||
IMAX Corp.* |
2,046 | 26,046 | ||||||
Liberty Media Corp-Liberty Formula One, Class A* |
1,860 | 96,757 | ||||||
Liberty Media Corp-Liberty Formula One, Class C* |
5,766 | 332,871 | ||||||
Lions Gate Entertainment Corp., Class A* (a) |
10,070 | 81,164 | ||||||
Lions Gate Entertainment Corp., Class B* |
13,964 | 105,987 | ||||||
Live Nation Entertainment, Inc.* (a) |
3,534 | 281,342 | ||||||
Madison Square Garden Entertainment Corp.* (a) |
1,860 | 91,196 | ||||||
Madison Square Garden Sports Corp., Class A |
555 | 86,919 | ||||||
Marcus Corp. (The)(a) |
1,110 | 16,694 | ||||||
Netflix, Inc.* |
14,880 | 4,343,174 | ||||||
Playtika Holding Corp.* |
3,720 | 35,154 | ||||||
Roku, Inc.* (a) |
3,162 | 175,618 | ||||||
Skillz, Inc.* (a) |
83,512 | 86,017 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 161 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Entertainment – (continued) | ||||||||
Take-Two Interactive Software, Inc.* |
3,906 | $ | 462,783 | |||||
Walt Disney Co. (The)* |
48,545 | 5,171,984 | ||||||
Warner Bros Discovery, Inc.* (a) |
72,724 | 945,412 | ||||||
Warner Music Group Corp., Class A(a) |
6,510 | 169,390 | ||||||
World Wrestling Entertainment, Inc., Class A(a) |
1,302 | 102,715 | ||||||
14,889,811 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.8% | ||||||||
Acadia Realty Trust |
4,092 | 57,165 | ||||||
Agree Realty Corp.(a) |
5,208 | 357,790 | ||||||
Alexander & Baldwin, Inc. |
3,162 | 61,596 | ||||||
Alexander’s, Inc.(a) |
186 | 43,690 | ||||||
Alexandria Real Estate Equities, Inc.(a) |
3,515 | 510,730 | ||||||
American Assets Trust, Inc. |
185 | 5,084 | ||||||
American Homes 4 Rent, Class A(a) |
6,696 | 213,870 | ||||||
American Tower Corp. |
12,276 | 2,543,464 | ||||||
Americold Realty Trust, Inc.(a) |
9,858 | 239,056 | ||||||
Apartment Income REIT Corp. |
2,405 | 92,424 | ||||||
Apple Hospitality REIT, Inc. |
6,845 | 117,186 | ||||||
Armada Hoffler Properties, Inc. |
1,674 | 19,569 | ||||||
AvalonBay Communities, Inc. |
4,070 | 712,738 | ||||||
Boston Properties, Inc. |
3,534 | 256,922 | ||||||
Braemar Hotels & Resorts, Inc.(a) |
372 | 1,834 | ||||||
Brixmor Property Group, Inc.(a) |
11,346 | 241,783 | ||||||
Broadstone Net Lease, Inc.(a) |
10,044 | 172,154 | ||||||
Camden Property Trust |
2,418 | 279,400 | ||||||
CareTrust REIT, Inc. |
7,812 | 145,928 | ||||||
Centerspace |
1,488 | 103,118 | ||||||
Chatham Lodging Trust* (a) |
7,626 | 98,909 | ||||||
City Office REIT, Inc. |
6,510 | 69,136 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Community Healthcare Trust, Inc.(a) |
1,302 | $ | 45,049 | |||||
Corporate Office Properties Trust(a) |
3,145 | 83,814 | ||||||
Cousins Properties, Inc.(a) |
10,788 | 256,323 | ||||||
Crown Castle, Inc. |
11,718 | 1,561,541 | ||||||
CubeSmart |
7,254 | 303,725 | ||||||
DiamondRock Hospitality Co. |
19,151 | 178,870 | ||||||
Digital Realty Trust, Inc. |
7,030 | 704,757 | ||||||
Douglas Emmett, Inc.(a) |
12,648 | 222,478 | ||||||
Easterly Government Properties, Inc.(a) |
925 | 16,086 | ||||||
EastGroup Properties, Inc. |
1,589 | 248,980 | ||||||
Elme Communities(a) |
6,882 | 131,377 | ||||||
Empire State Realty Trust, Inc., Class A(a) |
10,044 | 74,024 | ||||||
EPR Properties |
5,580 | 215,388 | ||||||
Equinix, Inc. |
2,418 | 1,369,652 | ||||||
Equity Commonwealth(a) |
6,324 | 165,436 | ||||||
Equity LifeStyle Properties, Inc. |
4,836 | 309,311 | ||||||
Equity Residential |
9,858 | 621,251 | ||||||
Essential Properties Realty Trust, Inc. |
8,742 | 188,128 | ||||||
Essex Property Trust, Inc. |
2,035 | 452,258 | ||||||
Extra Space Storage, Inc. |
3,348 | 594,069 | ||||||
Federal Realty Investment Trust |
1,860 | 184,103 | ||||||
First Industrial Realty Trust, Inc. |
7,812 | 372,086 | ||||||
Four Corners Property Trust, Inc.(a) |
1,674 | 42,888 | ||||||
Gaming and Leisure Properties, Inc. |
7,254 | 363,570 | ||||||
Getty Realty Corp.(a) |
186 | 5,857 | ||||||
Healthcare Realty Trust, Inc.(a) |
20,274 | 412,170 | ||||||
Healthpeak Properties, Inc. |
17,020 | 403,885 | ||||||
Hersha Hospitality Trust, Class A(a) |
186 | 1,702 | ||||||
Highwoods Properties, Inc. |
3,330 | 94,006 | ||||||
Host Hotels & Resorts, Inc. |
17,670 | 333,610 | ||||||
Hudson Pacific Properties, Inc.(a) |
4,440 | 49,018 |
See Accompanying Notes to the Financial Statements.
162 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Independence Realty Trust, Inc. |
9,300 | $ | 155,868 | |||||
Industrial Logistics Properties Trust |
4,464 | 20,892 | ||||||
Innovative Industrial Properties, Inc. |
1,860 | 201,066 | ||||||
InvenTrust Properties Corp.(a) |
2,976 | 74,995 | ||||||
Invitation Homes, Inc. |
14,136 | 447,970 | ||||||
Iron Mountain, Inc.(a) |
7,440 | 372,521 | ||||||
iStar, Inc. |
19,716 | 206,624 | ||||||
JBG SMITH Properties |
6,510 | 128,117 | ||||||
Kilroy Realty Corp.(a) |
1,295 | 55,348 | ||||||
Kimco Realty Corp. |
19,716 | 421,528 | ||||||
Kite Realty Group Trust(a) |
7,955 | 156,236 | ||||||
Lamar Advertising Co., Class A(a) |
2,976 | 274,476 | ||||||
Life Storage, Inc. |
2,790 | 308,602 | ||||||
LTC Properties, Inc.(a) |
3,700 | 143,079 | ||||||
LXP Industrial Trust(a) |
17,298 | 167,445 | ||||||
Macerich Co. (The) |
7,440 | 82,807 | ||||||
Medical Properties Trust, Inc.(a) |
24,366 | 278,991 | ||||||
Mid-America Apartment Communities, Inc.(a) |
2,976 | 468,571 | ||||||
National Health Investors, Inc.(a) |
2,604 | 147,647 | ||||||
National Retail Properties, Inc. |
3,162 | 132,899 | ||||||
National Storage Affiliates Trust(a) |
5,580 | 238,043 | ||||||
Necessity Retail REIT, Inc. (The)(a) |
26,226 | 179,386 | ||||||
NETSTREIT Corp.(a) |
6,308 | 118,717 | ||||||
NexPoint Residential Trust, Inc. |
186 | 8,482 | ||||||
Office Properties Income Trust(a) |
6,845 | 104,728 | ||||||
Omega Healthcare Investors, Inc.(a) |
14,743 | 468,533 | ||||||
Outfront Media, Inc.(a) |
4,070 | 73,464 | ||||||
Park Hotels & Resorts, Inc. |
16,962 | 221,863 | ||||||
Pebblebrook Hotel Trust(a) |
9,486 | 152,155 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Phillips Edison & Co., Inc.(a) |
6,324 | $ | 190,605 | |||||
Physicians Realty Trust(a) |
7,585 | 114,230 | ||||||
Piedmont Office Realty Trust, Inc., Class A |
740 | 7,733 | ||||||
Plymouth Industrial REIT, Inc. |
4,464 | 82,316 | ||||||
PotlatchDeltic Corp. |
16,650 | 740,758 | ||||||
Prologis, Inc. |
24,938 | 2,761,884 | ||||||
Public Storage |
4,092 | 1,267,497 | ||||||
Rayonier, Inc.(a) |
8,928 | 300,874 | ||||||
Realty Income Corp.(a) |
17,298 | 1,077,146 | ||||||
Regency Centers Corp.(a) |
2,976 | 180,078 | ||||||
Retail Opportunity Investments Corp. |
4,092 | 59,252 | ||||||
Rexford Industrial Realty, Inc.(a) |
5,022 | 277,616 | ||||||
RLJ Lodging Trust |
2,790 | 33,954 | ||||||
RPT Realty |
9,300 | 86,490 | ||||||
Ryman Hospitality Properties, Inc. |
3,534 | 314,243 | ||||||
Sabra Health Care REIT, Inc.(a) |
46,990 | 641,883 | ||||||
Safehold, Inc.(a) |
2,775 | 81,169 | ||||||
SBA Communications Corp. |
2,790 | 753,021 | ||||||
Service Properties Trust |
6,324 | 51,288 | ||||||
Simon Property Group, Inc. |
9,114 | 993,244 | ||||||
SITE Centers Corp.(a) |
5,394 | 66,778 | ||||||
SL Green Realty Corp.(a) |
2,790 | 110,707 | ||||||
Spirit Realty Capital, Inc.(a) |
8,556 | 332,229 | ||||||
STAG Industrial, Inc. |
11,840 | 374,026 | ||||||
STORE Capital Corp. |
4,650 | 147,870 | ||||||
Summit Hotel Properties, Inc.(a) |
29,946 | 258,733 | ||||||
Sun Communities, Inc. |
3,534 | 476,560 | ||||||
Sunstone Hotel Investors, Inc.(a) |
9,300 | 103,695 | ||||||
Tanger Factory Outlet Centers, Inc.(a) |
9,486 | 170,843 | ||||||
Terreno Realty Corp.(a) |
4,278 | 244,445 | ||||||
UDR, Inc. |
6,475 | 257,446 | ||||||
UMH Properties, Inc.(a) |
6,640 | 116,466 | ||||||
Uniti Group, Inc.(a) |
14,880 | 115,469 | ||||||
Universal Health Realty Income Trust(a) |
1,480 | 72,032 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 163 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Urban Edge Properties |
5,022 | $ | 70,911 | |||||
Urstadt Biddle Properties, Inc., Class A(a) |
5,394 | 101,084 | ||||||
Ventas, Inc. |
9,672 | 378,465 | ||||||
VICI Properties, Inc. |
31,248 | 1,000,561 | ||||||
Vornado Realty Trust(a) |
3,906 | 92,143 | ||||||
Welltower, Inc.(a) |
11,904 | 726,620 | ||||||
Weyerhaeuser Co. |
17,390 | 537,873 | ||||||
Whitestone REIT |
12,276 | 115,517 | ||||||
WP Carey, Inc. |
5,208 | 397,370 | ||||||
Xenia Hotels & Resorts, Inc. |
10,441 | 178,332 | ||||||
38,621,467 | ||||||||
Food & Staples Retailing – 1.3% | ||||||||
Albertsons Cos., Inc., Class A |
2,775 | 56,915 | ||||||
Andersons, Inc. (The)(a) |
2,790 | 98,403 | ||||||
BJ’s Wholesale Club Holdings, Inc.* |
4,545 | 351,783 | ||||||
Casey’s General Stores, Inc.(a) |
1,665 | 387,462 | ||||||
Chefs’ Warehouse, Inc. (The)* (a) |
3,885 | 142,308 | ||||||
Costco Wholesale Corp. |
11,718 | 5,876,577 | ||||||
Fresh Market, Inc. (The)* (d) |
319 | 177 | ||||||
Grocery Outlet Holding Corp.* (a) |
3,162 | 109,310 | ||||||
Ingles Markets, Inc., Class A(a) |
1,586 | 149,671 | ||||||
Kroger Co. (The) |
22,940 | 1,084,833 | ||||||
Performance Food Group Co.* |
3,534 | 183,909 | ||||||
PriceSmart, Inc. |
372 | 23,797 | ||||||
SpartanNash Co.(a) |
4,285 | 153,017 | ||||||
Sprouts Farmers Market, Inc.* (a) |
26,825 | 791,338 | ||||||
Sysco Corp.(a) |
13,392 | 1,159,212 | ||||||
United Natural Foods, Inc.* |
14,800 | 627,668 | ||||||
US Foods Holding Corp.* (a) |
7,770 | 231,235 | ||||||
Walgreens Boots Alliance, Inc.(a) |
21,576 | 787,524 | ||||||
Walmart, Inc. |
37,185 | 5,292,541 | ||||||
Weis Markets, Inc.(a) |
1,811 | 169,636 | ||||||
17,677,316 |
Investments | Shares | Value | ||||||
Food Products – 1.2% | ||||||||
Archer-Daniels-Midland Co.(a) |
18,972 | $ | 1,839,905 | |||||
B&G Foods, Inc.(a) |
5,952 | 97,494 | ||||||
Beyond Meat, Inc.* (a) |
3,534 | 55,484 | ||||||
Bunge Ltd. |
4,255 | 419,969 | ||||||
Calavo Growers, Inc.(a) |
186 | 6,434 | ||||||
Cal-Maine Foods, Inc.(a) |
740 | 41,817 | ||||||
Campbell Soup Co.(a) |
6,510 | 344,444 | ||||||
Conagra Brands, Inc.(a) |
16,368 | 600,706 | ||||||
Darling Ingredients, Inc.* |
4,836 | 379,529 | ||||||
Flowers Foods, Inc. |
12,276 | 352,444 | ||||||
Freshpet, Inc.* (a) |
2,418 | 142,541 | ||||||
General Mills, Inc.(a) |
20,535 | 1,675,245 | ||||||
Hain Celestial Group, Inc. (The)* |
2,790 | 52,201 | ||||||
Hershey Co. (The) |
3,720 | 888,224 | ||||||
Hormel Foods Corp.(a) |
8,370 | 388,787 | ||||||
Hostess Brands, Inc.* (a) |
4,255 | 112,672 | ||||||
Ingredion, Inc. |
15,066 | 1,342,682 | ||||||
J & J Snack Foods Corp.(a) |
1,302 | 192,188 | ||||||
J M Smucker Co. (The) |
3,906 | 588,478 | ||||||
John B Sanfilippo & Son, Inc.(a) |
1,480 | 123,447 | ||||||
Kellogg Co. |
8,184 | 628,695 | ||||||
Kraft Heinz Co. (The) |
24,235 | 932,320 | ||||||
Lamb Weston Holdings, Inc. |
3,906 | 336,775 | ||||||
Lancaster Colony Corp.(a) |
1,480 | 266,814 | ||||||
McCormick & Co., Inc. (Non-Voting)(a) |
7,440 | 585,082 | ||||||
Mondelez International, Inc., Class A |
37,555 | 2,308,881 | ||||||
Pilgrim’s Pride Corp.* |
9,300 | 214,365 | ||||||
Post Holdings, Inc.* (a) |
3,348 | 302,726 | ||||||
Seaboard Corp. |
62 | 232,276 | ||||||
Simply Good Foods Co. (The)* |
2,604 | 99,733 | ||||||
Tattooed Chef, Inc.* (a) |
10,230 | 48,593 | ||||||
Tootsie Roll Industries, Inc.(a) |
3,162 | 127,713 | ||||||
TreeHouse Foods, Inc.* (a) |
1,110 | 55,766 | ||||||
Tyson Foods, Inc., Class A |
8,556 | 584,803 | ||||||
Utz Brands, Inc.(a) |
7,998 | 129,648 | ||||||
Vital Farms, Inc.* (a) |
1,860 | 24,626 | ||||||
16,523,507 |
See Accompanying Notes to the Financial Statements.
164 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Gas Utilities – 0.3% | ||||||||
Atmos Energy Corp.(a) |
3,348 | $ | 356,729 | |||||
Chesapeake Utilities Corp.(a) |
558 | 69,404 | ||||||
National Fuel Gas Co. |
21,645 | 1,460,821 | ||||||
New Jersey Resources Corp.(a) |
6,762 | 301,856 | ||||||
Northwest Natural Holding Co.(a) |
2,790 | 134,171 | ||||||
ONE Gas, Inc. |
3,720 | 288,226 | ||||||
South Jersey Industries, Inc.(a) |
8,673 | 300,693 | ||||||
Southwest Gas Holdings, Inc.(a) |
2,418 | 176,683 | ||||||
Spire, Inc.(a) |
12,950 | 904,039 | ||||||
UGI Corp. |
7,812 | 275,998 | ||||||
4,268,620 | ||||||||
Health Care Equipment & Supplies – 2.3% | ||||||||
Abbott Laboratories |
45,695 | 4,521,063 | ||||||
ABIOMED, Inc.* |
1,116 | 281,321 | ||||||
Align Technology, Inc.* |
2,232 | 433,678 | ||||||
Alphatec Holdings, Inc.* (a) |
186 | 1,905 | ||||||
AngioDynamics, Inc.* |
558 | 7,862 | ||||||
Artivion, Inc.* (a) |
2,976 | 33,212 | ||||||
AtriCure, Inc.* (a) |
4,070 | 171,428 | ||||||
Atrion Corp. |
186 | 111,658 | ||||||
Avanos Medical, Inc.* |
1,116 | 24,719 | ||||||
Axonics, Inc.* |
2,976 | 217,665 | ||||||
Baxter International, Inc. |
12,210 | 663,614 | ||||||
Becton Dickinson and Co. |
7,770 | 1,833,487 | ||||||
BioLife Solutions, Inc.* (a) |
1,860 | 43,747 | ||||||
Bioventus, Inc., Class A* (a) |
2,790 | 22,711 | ||||||
Boston Scientific Corp.* |
39,590 | 1,706,725 | ||||||
Cardiovascular Systems, Inc.* |
186 | 2,686 | ||||||
CONMED Corp.(a) |
930 | 74,149 | ||||||
Cooper Cos., Inc. (The)(a) |
1,302 | 355,954 | ||||||
Dentsply Sirona, Inc. |
5,580 | 171,976 | ||||||
Dexcom, Inc.* |
10,416 | 1,258,044 | ||||||
Edwards Lifesciences Corp.* |
15,996 | 1,158,590 | ||||||
Embecta Corp.(a) |
14,322 | 442,836 | ||||||
Enovis Corp.* (a) |
2,604 | 128,784 | ||||||
Envista Holdings Corp.* (a) |
6,696 | 221,035 |
Investments | Shares | Value | ||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Establishment Labs Holdings, Inc.* (a) |
1,488 | $ | 83,908 | |||||
Figs, Inc., Class A* (a) |
1,674 | 12,354 | ||||||
Glaukos Corp.* (a) |
2,604 | 146,006 | ||||||
Globus Medical, Inc., Class A* (a) |
4,464 | 299,088 | ||||||
Haemonetics Corp.* (a) |
2,976 | 252,811 | ||||||
Heska Corp.* (a) |
372 | 26,695 | ||||||
Hologic, Inc.* (a) |
8,370 | 567,486 | ||||||
ICU Medical, Inc.* (a) |
1,302 | 193,230 | ||||||
IDEXX Laboratories, Inc.* |
2,418 | 869,706 | ||||||
Inari Medical, Inc.* (a) |
2,046 | 157,399 | ||||||
Inogen, Inc.* |
1,302 | 29,503 | ||||||
Inspire Medical Systems, Inc.* (a) |
1,488 | 290,086 | ||||||
Insulet Corp.* (a) |
1,674 | 433,248 | ||||||
Integer Holdings Corp.* (a) |
930 | 57,967 | ||||||
Integra LifeSciences Holdings Corp.* |
4,092 | 205,623 | ||||||
Intuitive Surgical, Inc.* |
9,065 | 2,234,251 | ||||||
iRhythm Technologies, Inc.* |
1,488 | 189,705 | ||||||
Lantheus Holdings, Inc.* |
4,527 | 334,953 | ||||||
LeMaitre Vascular, Inc.(a) |
186 | 8,072 | ||||||
LivaNova plc* |
3,162 | 148,930 | ||||||
Masimo Corp.* |
2,976 | 391,642 | ||||||
Medtronic plc |
34,410 | 3,005,369 | ||||||
Merit Medical Systems, Inc.* |
1,850 | 127,225 | ||||||
Mesa Laboratories, Inc.(a) |
744 | 98,364 | ||||||
Neogen Corp.* (a) |
15,910 | 210,012 | ||||||
Nevro Corp.* |
2,046 | 78,444 | ||||||
Novocure Ltd.* (a) |
2,604 | 183,999 | ||||||
NuVasive, Inc.* |
2,976 | 131,331 | ||||||
Omnicell, Inc.* (a) |
2,418 | 186,960 | ||||||
OraSure Technologies, Inc.* |
186 | 811 | ||||||
Orthofix Medical, Inc.* |
740 | 11,884 | ||||||
Outset Medical, Inc.* (a) |
2,604 | 40,466 | ||||||
Penumbra, Inc.* (a) |
2,405 | 412,385 | ||||||
PROCEPT BioRobotics Corp.* (a) |
1,860 | 84,500 | ||||||
QuidelOrtho Corp.* |
11,346 | 1,019,098 | ||||||
ResMed, Inc. |
3,720 | 832,127 | ||||||
Senseonics Holdings, Inc.* (a) |
558 | 658 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 165 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Shockwave Medical, Inc.* |
2,046 | $ | 599,785 | |||||
SI-BONE, Inc.* (a) |
2,976 | 57,853 | ||||||
Silk Road Medical, Inc.* |
2,790 | 122,983 | ||||||
STAAR Surgical Co.* (a) |
2,232 | 158,182 | ||||||
STERIS plc(a) |
2,976 | 513,598 | ||||||
Stryker Corp. |
8,695 | 1,993,242 | ||||||
Surmodics, Inc.* |
186 | 6,350 | ||||||
Tandem Diabetes Care, Inc.* (a) |
4,092 | 229,766 | ||||||
Teleflex, Inc. |
1,488 | 319,265 | ||||||
TransMedics Group, Inc.* (a) |
1,488 | 71,751 | ||||||
Treace Medical Concepts, Inc.* (a) |
2,604 | 63,746 | ||||||
ViewRay, Inc.* (a) |
7,068 | 30,322 | ||||||
Zimmer Biomet Holdings, Inc. |
6,138 | 695,742 | ||||||
Zimvie, Inc.* |
5,952 | 52,199 | ||||||
32,159,929 | ||||||||
Health Care Providers & Services – 3.4% | ||||||||
1Life Healthcare, Inc.* |
39,035 | 667,498 | ||||||
Acadia Healthcare Co., Inc.* (a) |
5,735 | 466,256 | ||||||
Accolade, Inc.* (a) |
19,425 | 209,402 | ||||||
AdaptHealth Corp.* (a) |
16,465 | 375,402 | ||||||
Addus HomeCare Corp.* (a) |
1,110 | 113,686 | ||||||
Agiliti, Inc.* (a) |
372 | 6,499 | ||||||
agilon health, Inc.* (a) |
5,920 | 117,512 | ||||||
Alignment Healthcare, Inc.* |
21,090 | 279,232 | ||||||
Amedisys, Inc.* |
1,674 | 163,366 | ||||||
AmerisourceBergen Corp.(a) |
5,394 | 848,045 | ||||||
AMN Healthcare Services, Inc.* (a) |
10,044 | 1,260,522 | ||||||
Apollo Medical Holdings, Inc.* (a) |
744 | 26,382 | ||||||
Aveanna Healthcare Holdings, Inc.* (a) |
5,952 | 8,273 | ||||||
Brookdale Senior Living, Inc.* |
54,125 | 241,939 | ||||||
Cano Health, Inc.* (a) |
15,624 | 55,934 | ||||||
Cardinal Health, Inc.(a) |
9,858 | 748,222 | ||||||
Castle Biosciences, Inc.* (a) |
2,232 | 56,961 | ||||||
Centene Corp.* |
19,610 | 1,669,399 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Chemed Corp. |
372 | $ | 173,676 | |||||
Cigna Corp. |
10,360 | 3,346,902 | ||||||
Clover Health Investments Corp.* (a) |
84,256 | 133,124 | ||||||
Community Health Systems, Inc.* (a) |
26,970 | 77,404 | ||||||
Cross Country Healthcare, Inc.* (a) |
7,998 | 296,646 | ||||||
CVS Health Corp. |
42,593 | 4,033,557 | ||||||
DaVita, Inc.* (a) |
2,590 | 189,096 | ||||||
Elevance Health, Inc. |
7,998 | 4,373,066 | ||||||
Encompass Health Corp.(a) |
3,885 | 211,499 | ||||||
Ensign Group, Inc. (The)(a) |
2,035 | 182,702 | ||||||
Fulgent Genetics, Inc.* (a) |
4,278 | 169,537 | ||||||
Guardant Health, Inc.* (a) |
6,138 | 303,831 | ||||||
HCA Healthcare, Inc. |
7,400 | 1,609,278 | ||||||
HealthEquity, Inc.* |
4,092 | 318,808 | ||||||
Henry Schein, Inc.* |
4,650 | 318,339 | ||||||
Humana, Inc. |
4,092 | 2,283,663 | ||||||
Innovage Holding Corp.* (a) |
186 | 1,151 | ||||||
Invitae Corp.* (a) |
70,115 | 180,897 | ||||||
Joint Corp. (The)* |
186 | 3,073 | ||||||
Laboratory Corp. of America Holdings(a) |
3,162 | 701,521 | ||||||
McKesson Corp. |
4,995 | 1,944,903 | ||||||
ModivCare, Inc.* |
372 | 36,173 | ||||||
Molina Healthcare, Inc.* |
2,046 | 734,228 | ||||||
National HealthCare Corp.(a) |
2,046 | 124,642 | ||||||
National Research Corp.(a) |
2,418 | 98,485 | ||||||
Oak Street Health, Inc.* (a) |
4,625 | 93,564 | ||||||
OPKO Health, Inc.* |
90,208 | 171,395 | ||||||
Option Care Health, Inc.* |
10,044 | 303,931 | ||||||
Owens & Minor, Inc.(a) |
17,298 | 294,066 | ||||||
Patterson Cos., Inc.(a) |
20,274 | 526,516 | ||||||
Pediatrix Medical Group, Inc.* (a) |
4,464 | 86,602 | ||||||
PetIQ, Inc.* |
2,418 | 19,876 | ||||||
Premier, Inc., Class A |
24,605 | 858,222 | ||||||
Privia Health Group, Inc.* (a) |
2,590 | 86,713 | ||||||
Progyny, Inc.* |
3,348 | 148,886 | ||||||
Quest Diagnostics, Inc. |
4,278 | 614,535 | ||||||
R1 RCM, Inc.* (a) |
4,278 | 75,549 |
See Accompanying Notes to the Financial Statements.
166 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
RadNet, Inc.* |
1,116 | $ | 21,338 | |||||
Select Medical Holdings Corp.(a) |
20,535 | 527,339 | ||||||
Signify Health, Inc., Class A* (a) |
3,700 | 108,151 | ||||||
Surgery Partners, Inc.* (a) |
3,534 | 96,089 | ||||||
Tenet Healthcare Corp.* |
4,740 | 210,266 | ||||||
UnitedHealth Group, Inc. |
24,975 | 13,864,871 | ||||||
Universal Health Services, Inc., Class B |
1,480 | 171,488 | ||||||
US Physical Therapy, Inc.(a) |
186 | 16,517 | ||||||
47,456,645 | ||||||||
Health Care Technology – 0.1% | ||||||||
Allscripts Healthcare Solutions, Inc.* (a) |
10,267 | 150,925 | ||||||
American Well Corp., Class A* (a) |
17,484 | 71,510 | ||||||
Certara, Inc.* |
6,324 | 77,342 | ||||||
Computer Programs & Systems, Inc.* (a) |
3,348 | 108,140 | ||||||
Doximity, Inc., Class A* (a) |
7,955 | 210,569 | ||||||
Evolent Health, Inc., Class A* (a) |
6,290 | 200,085 | ||||||
HealthStream, Inc.* |
186 | 4,594 | ||||||
Multiplan Corp.* (a) |
13,392 | 38,435 | ||||||
NextGen Healthcare, Inc.* |
558 | 11,182 | ||||||
OptimizeRx Corp.* |
558 | 8,602 | ||||||
Phreesia, Inc.* (a) |
4,995 | 136,463 | ||||||
Schrodinger, Inc.* (a) |
3,348 | 80,252 | ||||||
Simulations Plus, Inc.(a) |
930 | 38,595 | ||||||
Teladoc Health, Inc.* (a) |
9,858 | 292,191 | ||||||
Veeva Systems, Inc., Class A* |
3,906 | 655,974 | ||||||
2,084,859 | ||||||||
Hotels, Restaurants & Leisure – 2.1% | ||||||||
Airbnb, Inc., Class A* (a) |
10,416 | 1,113,575 | ||||||
Aramark |
6,324 | 230,826 | ||||||
BJ’s Restaurants, Inc.* (a) |
2,232 | 73,321 | ||||||
Bloomin’ Brands, Inc.(a) |
18,786 | 451,052 | ||||||
Booking Holdings, Inc.* |
1,053 | 1,968,562 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Boyd Gaming Corp. |
4,278 | $ | 247,097 | |||||
Brinker International, Inc.* (a) |
8,325 | 277,972 | ||||||
Caesars Entertainment, Inc.* (a) |
6,510 | 284,682 | ||||||
Carnival Corp.* (a) |
35,897 | 325,227 | ||||||
Cheesecake Factory, Inc. (The)(a) |
11,160 | 399,640 | ||||||
Chipotle Mexican Grill, Inc.* (a) |
744 | 1,114,758 | ||||||
Choice Hotels International, Inc.(a) |
1,116 | 144,901 | ||||||
Churchill Downs, Inc. |
930 | 193,356 | ||||||
Cracker Barrel Old Country Store, Inc.(a) |
4,440 | 507,137 | ||||||
Darden Restaurants, Inc. |
2,976 | 425,985 | ||||||
Dave & Buster’s Entertainment, Inc.* (a) |
4,070 | 162,189 | ||||||
Denny’s Corp.* |
1,674 | 18,966 | ||||||
Dine Brands Global, Inc.(a) |
2,590 | 186,713 | ||||||
Domino’s Pizza, Inc. |
1,116 | 370,780 | ||||||
DraftKings, Inc., Class A* (a) |
23,064 | 364,411 | ||||||
El Pollo Loco Holdings, Inc.(a) |
3,720 | 37,349 | ||||||
Everi Holdings, Inc.* |
8,370 | 158,863 | ||||||
Expedia Group, Inc.* |
3,906 | 365,094 | ||||||
F45 Training Holdings, Inc.* (a) |
1,302 | 4,349 | ||||||
First Watch Restaurant Group, Inc.* (a) |
1,302 | 22,199 | ||||||
Hilton Grand Vacations, Inc.* |
19,530 | 766,357 | ||||||
Hilton Worldwide Holdings, Inc. |
6,882 | 930,859 | ||||||
Hyatt Hotels Corp., Class A* (a) |
10,974 | 1,033,861 | ||||||
Jack in the Box, Inc.(a) |
372 | 32,822 | ||||||
Las Vegas Sands Corp.* (a) |
9,300 | 353,493 | ||||||
Life Time Group Holdings, Inc.* (a) |
9,114 | 95,606 | ||||||
Light & Wonder, Inc.* |
3,515 | 197,332 | ||||||
Marriott International, Inc., Class A |
7,254 | 1,161,438 | ||||||
Marriott Vacations Worldwide Corp. |
2,604 | 384,767 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 167 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
McDonald’s Corp. |
19,716 | $ | 5,375,765 | |||||
Membership Collective Group, Inc., Class A* (a) |
6,324 | 28,964 | ||||||
MGM Resorts International |
10,742 | 382,093 | ||||||
Norwegian Cruise Line Holdings Ltd.* (a) |
11,100 | 187,479 | ||||||
Papa John’s International, Inc.(a) |
2,232 | 162,110 | ||||||
Penn Entertainment, Inc.* (a) |
37,943 | 1,255,913 | ||||||
Planet Fitness, Inc., Class A* |
5,208 | 341,020 | ||||||
Portillo’s, Inc., Class A* |
1,674 | 35,891 | ||||||
Red Rock Resorts, Inc., Class A(a) |
2,232 | 92,963 | ||||||
Royal Caribbean Cruises Ltd.* (a) |
4,650 | 248,217 | ||||||
Rush Street Interactive, Inc.* (a) |
12,648 | 52,489 | ||||||
Ruth’s Hospitality Group, Inc.(a) |
5,580 | 115,952 | ||||||
SeaWorld Entertainment, Inc.* (a) |
3,515 | 204,432 | ||||||
Shake Shack, Inc., Class A* (a) |
2,232 | 124,032 | ||||||
Six Flags Entertainment Corp.* (a) |
5,580 | 124,434 | ||||||
Starbucks Corp.(a) |
29,600 | 2,563,064 | ||||||
Texas Roadhouse, Inc. |
4,255 | 421,032 | ||||||
Travel + Leisure Co. |
17,205 | 653,446 | ||||||
Vail Resorts, Inc.(a) |
1,116 | 244,549 | ||||||
Wendy’s Co. (The) |
12,210 | 253,724 | ||||||
Wingstop, Inc.(a) |
2,046 | 324,066 | ||||||
Wyndham Hotels & Resorts, Inc. |
3,534 | 268,337 | ||||||
Wynn Resorts Ltd.* (a) |
2,405 | 153,679 | ||||||
Yum! Brands, Inc. |
8,140 | 962,555 | ||||||
28,981,745 | ||||||||
Household Durables – 0.9% | ||||||||
Beazer Homes USA, Inc.* |
3,348 | 37,866 | ||||||
Cavco Industries, Inc.* (a) |
186 | 42,161 | ||||||
Century Communities, Inc.(a) |
7,812 | 347,712 | ||||||
Cricut, Inc., Class A* (a) |
744 | 6,614 |
Investments | Shares | Value | ||||||
Household Durables – (continued) | ||||||||
DR Horton, Inc.(a) |
10,602 | $ | 815,082 | |||||
Dream Finders Homes, Inc., Class A* (a) |
5,580 | 61,938 | ||||||
Ethan Allen Interiors, Inc.(a) |
4,650 | 118,993 | ||||||
Garmin Ltd. |
4,464 | 393,011 | ||||||
GoPro, Inc., Class A* (a) |
28,458 | 155,096 | ||||||
Green Brick Partners, Inc.* (a) |
8,742 | 202,202 | ||||||
Helen of Troy Ltd.* |
1,488 | 140,795 | ||||||
Installed Building Products, Inc. |
744 | 63,984 | ||||||
iRobot Corp.* (a) |
1,488 | 84,072 | ||||||
KB Home |
20,832 | 600,378 | ||||||
La-Z-Boy, Inc.(a) |
8,556 | 211,932 | ||||||
Leggett & Platt, Inc.(a) |
30,690 | 1,035,788 | ||||||
Lennar Corp., Class A(a) |
8,880 | 716,616 | ||||||
Lennar Corp., Class B |
558 | 36,393 | ||||||
LGI Homes, Inc.* (a) |
5,394 | 496,518 | ||||||
Lovesac Co. (The)* (a) |
1,302 | 31,691 | ||||||
M/I Homes, Inc.* |
7,812 | 324,120 | ||||||
MDC Holdings, Inc.(a) |
13,392 | 407,920 | ||||||
Meritage Homes Corp.* |
8,928 | 679,956 | ||||||
Mohawk Industries, Inc.* |
1,674 | 158,611 | ||||||
Newell Brands, Inc.(a) |
12,090 | 166,963 | ||||||
NVR, Inc.* |
104 | 440,726 | ||||||
PulteGroup, Inc. |
9,065 | 362,509 | ||||||
Skyline Champion Corp.* |
1,860 | 108,271 | ||||||
Sonos, Inc.* (a) |
7,812 | 125,929 | ||||||
Taylor Morrison Home Corp., Class A* (a) |
28,305 | 745,554 | ||||||
Tempur Sealy International, Inc. |
40,361 | 1,085,307 | ||||||
Toll Brothers, Inc. |
22,506 | 969,558 | ||||||
TopBuild Corp.* |
1,674 | 284,814 | ||||||
Traeger, Inc.* |
3,348 | 13,894 | ||||||
Tri Pointe Homes, Inc.* (a) |
27,380 | 458,615 | ||||||
Tupperware Brands Corp.* |
12,834 | 99,207 | ||||||
Universal Electronics, Inc.* |
2,790 | 56,944 | ||||||
Weber, Inc., Class A(a) |
2,418 | 16,104 | ||||||
Whirlpool Corp.(a) |
2,232 | 308,552 | ||||||
12,412,396 |
See Accompanying Notes to the Financial Statements.
168 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Household Products – 1.0% | ||||||||
Central Garden & Pet Co.* (a) |
1,674 | $ | 69,086 | |||||
Central Garden & Pet Co., Class A* |
10,230 | 400,402 | ||||||
Church & Dwight Co., Inc. |
7,254 | 537,739 | ||||||
Clorox Co. (The)(a) |
3,720 | 543,269 | ||||||
Colgate-Palmolive Co. |
21,830 | 1,611,927 | ||||||
Energizer Holdings, Inc.(a) |
15,252 | 440,630 | ||||||
Kimberly-Clark Corp. |
8,325 | 1,036,129 | ||||||
Procter & Gamble Co. (The) |
63,425 | 8,541,445 | ||||||
Reynolds Consumer Products, Inc.(a) |
370 | 11,300 | ||||||
Spectrum Brands Holdings, Inc. |
3,330 | 153,646 | ||||||
WD-40 Co.(a) |
930 | 148,949 | ||||||
13,494,522 | ||||||||
Independent Power and Renewable
Electricity Producers – 0.1% |
||||||||
AES Corp. (The)(a) |
19,344 | 506,039 | ||||||
Clearway Energy, Inc., Class A |
3,534 | 114,254 | ||||||
Clearway Energy, Inc., Class C |
2,418 | 84,002 | ||||||
Ormat Technologies, Inc.(a) |
1,665 | 150,599 | ||||||
Sunnova Energy International, Inc.* (a) |
5,394 | 100,005 | ||||||
Vistra Corp. |
15,857 | 364,235 | ||||||
1,319,134 | ||||||||
Industrial Conglomerates – 0.6% | ||||||||
3M Co. |
17,760 | 2,234,030 | ||||||
General Electric Co. |
28,644 | 2,228,790 | ||||||
Honeywell International, Inc. |
18,228 | 3,718,877 | ||||||
8,181,697 | ||||||||
Insurance – 3.0% | ||||||||
Aflac, Inc.(a) |
20,165 | 1,312,943 | ||||||
Allstate Corp. (The) |
9,435 | 1,191,169 | ||||||
American Equity Investment Life Holding Co. |
18,026 | 776,560 | ||||||
American Financial Group, Inc. |
2,790 | 404,857 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
American International Group, Inc.(a) |
25,296 | $ | 1,441,872 | |||||
AMERISAFE, Inc. |
372 | 21,729 | ||||||
Aon plc, Class A |
5,580 | 1,570,714 | ||||||
Arch Capital Group Ltd.* |
13,690 | 787,175 | ||||||
Argo Group International Holdings Ltd.(a) |
6,882 | 171,155 | ||||||
Arthur J Gallagher & Co. |
5,180 | 969,074 | ||||||
Assurant, Inc.(a) |
2,232 | 303,240 | ||||||
Assured Guaranty Ltd. |
4,642 | 274,760 | ||||||
Axis Capital Holdings Ltd. |
16,740 | 915,176 | ||||||
Brighthouse Financial, Inc.* (a) |
17,390 | 992,447 | ||||||
Brown & Brown, Inc. |
6,138 | 360,853 | ||||||
BRP Group, Inc., Class A* (a) |
1,674 | 47,458 | ||||||
Chubb Ltd. |
14,060 | 3,021,353 | ||||||
Cincinnati Financial Corp.(a) |
4,092 | 422,785 | ||||||
CNO Financial Group, Inc. |
29,789 | 657,145 | ||||||
Employers Holdings, Inc.(a) |
744 | 32,446 | ||||||
Enstar Group Ltd.* |
2,775 | 556,443 | ||||||
Erie Indemnity Co., Class A |
370 | 95,094 | ||||||
Everest Re Group Ltd. |
1,116 | 360,089 | ||||||
Fidelity National Financial, Inc. |
10,788 | 424,831 | ||||||
First American Financial Corp.(a) |
23,622 | 1,190,549 | ||||||
Genworth Financial, Inc., Class A* |
110,667 | 516,815 | ||||||
Globe Life, Inc. |
2,604 | 300,814 | ||||||
Goosehead Insurance, Inc., Class A* (a) |
372 | 15,442 | ||||||
Hagerty, Inc., Class A* (a) |
6,324 | 57,485 | ||||||
Hanover Insurance Group, Inc. (The) |
7,812 | 1,144,380 | ||||||
Hartford Financial Services Group, Inc. (The) |
11,655 | 843,939 | ||||||
HCI Group, Inc.(a) |
1,302 | 47,705 | ||||||
Horace Mann Educators Corp. |
7,812 | 308,262 | ||||||
Kemper Corp.(a) |
13,206 | 629,530 | ||||||
Kinsale Capital Group, Inc.(a) |
1,302 | 410,351 | ||||||
Lemonade, Inc.* (a) |
2,232 | 54,014 | ||||||
Lincoln National Corp. |
6,475 | 348,808 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 169 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Loews Corp. |
7,812 | $ | 445,440 | |||||
Markel Corp.* |
370 | 446,257 | ||||||
Marsh & McLennan Cos., Inc. |
13,690 | 2,210,798 | ||||||
MBIA, Inc.* |
6,510 | 70,048 | ||||||
Mercury General Corp. |
6,696 | 194,184 | ||||||
MetLife, Inc. |
23,125 | 1,692,981 | ||||||
National Western Life Group, Inc., Class A(a) |
372 | 73,663 | ||||||
Old Republic International Corp.(a) |
12,462 | 289,243 | ||||||
Oscar Health, Inc., Class A* (a) |
10,416 | 38,852 | ||||||
Palomar Holdings, Inc.* |
1,674 | 148,919 | ||||||
Primerica, Inc.(a) |
1,480 | 214,156 | ||||||
Principal Financial Group, Inc.(a) |
8,621 | 759,769 | ||||||
ProAssurance Corp. |
1,674 | 37,180 | ||||||
Progressive Corp. (The) |
16,095 | 2,066,598 | ||||||
Prudential Financial, Inc. |
12,276 | 1,291,312 | ||||||
Reinsurance Group of America, Inc. |
1,665 | 245,038 | ||||||
RenaissanceRe Holdings Ltd.(a) |
9,435 | 1,459,406 | ||||||
RLI Corp. |
1,480 | 192,504 | ||||||
Ryan Specialty Holdings, Inc., Class A* (a) |
2,775 | 124,459 | ||||||
Safety Insurance Group, Inc.(a) |
1,665 | 144,772 | ||||||
Selective Insurance Group, Inc. |
13,206 | 1,295,244 | ||||||
SiriusPoint Ltd.* |
15,066 | 96,724 | ||||||
Stewart Information Services Corp. |
6,882 | 268,123 | ||||||
Travelers Cos., Inc. (The) |
8,325 | 1,535,630 | ||||||
Trupanion, Inc.* (a) |
2,418 | 122,036 | ||||||
Universal Insurance Holdings, Inc.(a) |
930 | 9,337 | ||||||
Unum Group(a) |
44,215 | 2,015,762 | ||||||
W R Berkley Corp. |
5,022 | 373,536 | ||||||
White Mountains Insurance Group Ltd.(a) |
186 | 263,404 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Willis Towers Watson plc |
2,976 | $ | 649,393 | |||||
41,754,230 | ||||||||
Interactive Media & Services – 2.7% | ||||||||
Alphabet, Inc., Class A* |
158,175 | 14,949,119 | ||||||
Alphabet, Inc., Class C* |
141,340 | 13,379,244 | ||||||
Bumble, Inc., Class A* (a) |
3,720 | 94,488 | ||||||
Cargurus, Inc.* (a) |
9,065 | 131,987 | ||||||
Cars.com, Inc.* (a) |
8,556 | 118,757 | ||||||
Eventbrite, Inc., Class A* (a) |
5,208 | 34,217 | ||||||
fuboTV, Inc.* (a) |
54,311 | 198,778 | ||||||
IAC, Inc.* |
2,976 | 144,872 | ||||||
Match Group, Inc.* |
8,370 | 361,584 | ||||||
MediaAlpha, Inc., Class A* (a) |
2,604 | 28,592 | ||||||
Meta Platforms, Inc., Class A* |
74,740 | 6,962,778 | ||||||
Pinterest, Inc., Class A* |
15,252 | 375,199 | ||||||
QuinStreet, Inc.* (a) |
1,674 | 19,100 | ||||||
Shutterstock, Inc. |
1,860 | 93,056 | ||||||
Snap, Inc., Class A* |
26,226 | 259,900 | ||||||
TripAdvisor, Inc.* (a) |
6,138 | 144,980 | ||||||
Vimeo, Inc.* |
8,928 | 33,926 | ||||||
Yelp, Inc.* |
1,665 | 63,953 | ||||||
Ziff Davis, Inc.* |
1,480 | 114,537 | ||||||
ZoomInfo Technologies, Inc., Class A* (a) |
6,696 | 298,173 | ||||||
37,807,240 | ||||||||
Internet & Direct Marketing Retail – 2.0% | ||||||||
Amazon.com, Inc.* |
234,210 | 23,992,472 | ||||||
Chewy, Inc., Class A* (a) |
5,580 | 216,113 | ||||||
ContextLogic, Inc., Class A* (a) |
91,882 | 71,944 | ||||||
DoorDash, Inc., Class A* |
7,955 | 346,281 | ||||||
eBay, Inc. |
16,465 | 655,966 | ||||||
Etsy, Inc.* (a) |
2,976 | 279,476 | ||||||
Groupon, Inc.* (a) |
2,790 | 20,562 | ||||||
Lands’ End, Inc.* |
558 | 5,848 | ||||||
Liquidity Services, Inc.* (a) |
558 | 9,587 | ||||||
MercadoLibre, Inc.* |
1,295 | 1,167,598 | ||||||
Overstock.com, Inc.* (a) |
2,046 | 47,570 | ||||||
PetMed Express, Inc.(a) |
1,488 | 31,724 |
See Accompanying Notes to the Financial Statements.
170 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Internet & Direct Marketing Retail – (continued) | ||||||||
Porch Group, Inc.* (a) |
27,714 | $ | 37,691 | |||||
Poshmark, Inc., Class A* (a) |
2,976 | 53,151 | ||||||
Quotient Technology, Inc.* (a) |
5,394 | 13,269 | ||||||
Qurate Retail, Inc., Series A |
91,760 | 214,718 | ||||||
RealReal, Inc. (The)* (a) |
6,138 | 10,373 | ||||||
Revolve Group, Inc.* (a) |
558 | 13,392 | ||||||
Stitch Fix, Inc., Class A* (a) |
23,436 | 93,744 | ||||||
Wayfair, Inc., Class A* (a) |
4,836 | 183,381 | ||||||
Xometry, Inc., Class A* (a) |
744 | 44,685 | ||||||
27,509,545 | ||||||||
IT Services – 3.7% | ||||||||
Accenture plc, Class A |
16,740 | 4,752,486 | ||||||
Affirm Holdings, Inc.* (a) |
9,672 | 194,117 | ||||||
Akamai Technologies, Inc.* |
3,720 | 328,588 | ||||||
Automatic Data Processing, Inc. |
11,285 | 2,727,584 | ||||||
AvidXchange Holdings, Inc.* |
3,348 | 30,467 | ||||||
BigCommerce Holdings, Inc., Series 1* |
6,324 | 93,975 | ||||||
Block, Inc., Class A* (a) |
14,985 | 900,149 | ||||||
Broadridge Financial Solutions, Inc. |
3,348 | 502,401 | ||||||
Cantaloupe, Inc.* |
2,976 | 9,970 | ||||||
Cloudflare, Inc., Class A* |
6,696 | 377,119 | ||||||
Cognizant Technology Solutions Corp., Class A |
16,368 | 1,018,908 | ||||||
Concentrix Corp. |
555 | 67,838 | ||||||
Conduent, Inc.* |
48,173 | 198,473 | ||||||
CSG Systems International, Inc.(a) |
2,976 | 192,458 | ||||||
DigitalOcean Holdings, Inc.* (a) |
4,810 | 172,775 | ||||||
DXC Technology Co.* |
10,175 | 292,531 | ||||||
Edgio, Inc.* (a) |
3,720 | 10,007 | ||||||
EPAM Systems, Inc.* |
1,480 | 518,000 | ||||||
Euronet Worldwide, Inc.* |
2,418 | 203,136 | ||||||
EVERTEC, Inc.(a) |
1,860 | 66,607 | ||||||
Evo Payments, Inc., Class A* |
1,302 | 43,864 | ||||||
ExlService Holdings, Inc.* |
1,295 | 235,496 | ||||||
Fastly, Inc., Class A* (a) |
5,952 | 50,532 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
Fidelity National Information Services, Inc. |
20,460 | $ | 1,697,975 | |||||
Fiserv, Inc.* |
20,535 | 2,109,766 | ||||||
FleetCor Technologies, Inc.* |
2,046 | 380,801 | ||||||
Flywire Corp.* |
744 | 16,331 | ||||||
Gartner, Inc.* |
2,405 | 726,118 | ||||||
Genpact Ltd. |
3,906 | 189,441 | ||||||
Global Payments, Inc. |
9,114 | 1,041,366 | ||||||
GoDaddy, Inc., Class A* |
4,278 | 343,951 | ||||||
Grid Dynamics Holdings, Inc.* |
372 | 5,063 | ||||||
International Business Machines Corp.(a) |
29,574 | 4,089,788 | ||||||
International Money Express, Inc.* |
2,604 | 70,386 | ||||||
Jack Henry & Associates, Inc. |
2,046 | 407,277 | ||||||
Kyndryl Holdings, Inc.* (a) |
41,849 | 404,680 | ||||||
Marqeta, Inc., Class A* (a) |
20,832 | 164,156 | ||||||
Mastercard, Inc., Class A |
22,385 | 7,346,309 | ||||||
Maximus, Inc. |
3,885 | 239,588 | ||||||
MongoDB, Inc.* (a) |
1,674 | 306,392 | ||||||
Okta, Inc.* |
3,534 | 198,328 | ||||||
Paya Holdings, Inc.* |
186 | 1,495 | ||||||
Paychex, Inc. |
8,370 | 990,255 | ||||||
Payoneer Global, Inc.* (a) |
18,972 | 147,033 | ||||||
PayPal Holdings, Inc.* |
31,248 | 2,611,708 | ||||||
Perficient, Inc.* |
1,116 | 74,738 | ||||||
Rackspace Technology, Inc.* (a) |
15,624 | 80,464 | ||||||
Repay Holdings Corp.* (a) |
6,138 | 37,380 | ||||||
Sabre Corp.* (a) |
78,118 | 453,865 | ||||||
Shift4 Payments, Inc., Class A* (a) |
3,162 | 145,357 | ||||||
Snowflake, Inc., Class A* (a) |
7,770 | 1,245,531 | ||||||
SolarWinds Corp.* |
18,685 | 174,331 | ||||||
Squarespace, Inc., Class A* |
1,860 | 41,311 | ||||||
SS&C Technologies Holdings, Inc. |
5,766 | 296,488 | ||||||
Switch, Inc., Class A(a) |
6,138 | 208,999 | ||||||
TaskUS, Inc., Class A* (a) |
1,116 | 22,532 | ||||||
Toast, Inc., Class A* (a) |
15,624 | 345,134 | ||||||
TTEC Holdings, Inc. |
558 | 24,814 | ||||||
Tucows, Inc., Class A* (a) |
186 | 8,361 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 171 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
Twilio, Inc., Class A* |
3,700 | $ | 275,169 | |||||
Unisys Corp.* (a) |
13,764 | 116,994 | ||||||
VeriSign, Inc.* |
2,604 | 521,998 | ||||||
Verra Mobility Corp.* (a) |
11,160 | 190,501 | ||||||
Visa, Inc., Class A(a) |
43,523 | 9,016,225 | ||||||
Western Union Co. (The)(a) |
88,906 | 1,201,120 | ||||||
WEX, Inc.* |
1,850 | 303,659 | ||||||
51,260,659 | ||||||||
Leisure Products – 0.3% | ||||||||
Acushnet Holdings Corp.(a) |
1,116 | 51,972 | ||||||
AMMO, Inc.* (a) |
18,786 | 61,055 | ||||||
Brunswick Corp. |
17,298 | 1,222,450 | ||||||
Hasbro, Inc. |
3,162 | 206,320 | ||||||
Johnson Outdoors, Inc., Class A(a) |
186 | 9,787 | ||||||
Malibu Boats, Inc., Class A* |
4,092 | 216,467 | ||||||
MasterCraft Boat Holdings, Inc.* (a) |
740 | 16,102 | ||||||
Mattel, Inc.* (a) |
12,648 | 239,806 | ||||||
Peloton Interactive, Inc., Class A* (a) |
18,972 | 159,365 | ||||||
Polaris, Inc.(a) |
12,025 | 1,221,740 | ||||||
Smith & Wesson Brands, Inc. |
8,370 | 94,497 | ||||||
Solo Brands, Inc., Class A* (a) |
1,674 | 6,914 | ||||||
Sturm Ruger & Co., Inc.(a) |
4,092 | 229,684 | ||||||
Topgolf Callaway Brands Corp.* (a) |
5,208 | 97,494 | ||||||
Vista Outdoor, Inc.* (a) |
11,904 | 345,692 | ||||||
YETI Holdings, Inc.* (a) |
6,324 | 202,874 | ||||||
4,382,219 | ||||||||
Life Sciences Tools & Services – 1.3% | ||||||||
10X Genomics, Inc., Class A* (a) |
6,324 | 171,886 | ||||||
AbCellera Biologics, Inc.* (a) |
14,694 | 173,830 | ||||||
Absci Corp.* (a) |
2,046 | 6,465 | ||||||
Adaptive Biotechnologies Corp.* |
2,418 | 18,812 | ||||||
Agilent Technologies, Inc. |
7,998 | 1,106,523 | ||||||
Avantor, Inc.* |
14,800 | 298,516 |
Investments | Shares | Value | ||||||
Life Sciences Tools & Services – (continued) | ||||||||
Azenta, Inc.(a) |
4,650 | $ | 206,460 | |||||
Bionano Genomics, Inc.* (a) |
16,182 | 37,866 | ||||||
Bio-Rad Laboratories, Inc., Class A* |
558 | 196,254 | ||||||
Bio-Techne Corp. |
930 | 275,522 | ||||||
Bruker Corp.(a) |
2,604 | 161,031 | ||||||
Charles River Laboratories International, Inc.* |
1,302 | 276,350 | ||||||
Codexis, Inc.* |
5,580 | 31,360 | ||||||
CryoPort, Inc.* (a) |
1,674 | 46,470 | ||||||
Cytek Biosciences, Inc.* (a) |
1,302 | 20,207 | ||||||
Danaher Corp. |
17,020 | 4,283,423 | ||||||
Illumina, Inc.* |
4,464 | 1,021,453 | ||||||
IQVIA Holdings, Inc.* |
4,625 | 969,724 | ||||||
Maravai LifeSciences Holdings, Inc., Class A* (a) |
6,510 | 108,066 | ||||||
Medpace Holdings, Inc.* (a) |
1,116 | 247,730 | ||||||
Mettler-Toledo International, Inc.* |
558 | 705,831 | ||||||
NanoString Technologies, Inc.* |
3,348 | 35,020 | ||||||
NeoGenomics, Inc.* |
3,534 | 26,876 | ||||||
Pacific Biosciences of California, Inc.* (a) |
10,602 | 89,481 | ||||||
PerkinElmer, Inc.(a) |
2,775 | 370,685 | ||||||
Quanterix Corp.* |
2,418 | 26,767 | ||||||
Repligen Corp.* (a) |
1,488 | 271,545 | ||||||
SomaLogic, Inc.* |
22,692 | 78,741 | ||||||
Sotera Health Co.* |
5,208 | 35,831 | ||||||
Syneos Health, Inc.* |
2,046 | 103,077 | ||||||
Thermo Fisher Scientific, Inc. |
10,379 | 5,334,495 | ||||||
Waters Corp.* |
1,674 | 500,811 | ||||||
West Pharmaceutical Services, Inc. |
1,860 | 427,986 | ||||||
17,665,094 | ||||||||
Machinery – 2.2% | ||||||||
3D Systems Corp.* (a) |
5,580 | 49,271 | ||||||
AGCO Corp. |
2,604 | 323,339 | ||||||
Alamo Group, Inc. |
372 | 56,574 | ||||||
Albany International Corp., Class A(a) |
2,232 | 204,496 | ||||||
Allison Transmission Holdings, Inc. |
19,795 | 836,339 |
See Accompanying Notes to the Financial Statements.
172 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Altra Industrial Motion Corp. |
14,880 | $ | 894,883 | |||||
Astec Industries, Inc. |
1,674 | 73,070 | ||||||
Barnes Group, Inc. |
1,488 | 52,631 | ||||||
Blue Bird Corp.* (a) |
3,720 | 34,112 | ||||||
Caterpillar, Inc.(a) |
17,484 | 3,784,587 | ||||||
Chart Industries, Inc.* (a) |
2,232 | 497,468 | ||||||
CIRCOR International, Inc.* |
2,604 | 53,825 | ||||||
Columbus McKinnon Corp. |
558 | 15,914 | ||||||
Crane Holdings Co.(a) |
3,348 | 335,938 | ||||||
Cummins, Inc.(a) |
4,650 | 1,136,972 | ||||||
Deere & Co. |
9,114 | 3,607,504 | ||||||
Desktop Metal, Inc., Class A* (a) |
372 | 941 | ||||||
Donaldson Co., Inc. |
7,626 | 438,114 | ||||||
Douglas Dynamics, Inc. |
372 | 12,629 | ||||||
Dover Corp.(a) |
3,720 | 486,167 | ||||||
Energy Recovery, Inc.* (a) |
185 | 4,760 | ||||||
Enerpac Tool Group Corp. |
5,208 | 132,335 | ||||||
EnPro Industries, Inc.(a) |
1,302 | 138,663 | ||||||
ESCO Technologies, Inc. |
555 | 47,824 | ||||||
Evoqua Water Technologies Corp.* (a) |
5,580 | 218,624 | ||||||
Federal Signal Corp. |
1,860 | 86,769 | ||||||
Flowserve Corp.(a) |
7,440 | 213,379 | ||||||
Fortive Corp. |
8,928 | 570,499 | ||||||
Franklin Electric Co., Inc. |
1,295 | 106,112 | ||||||
Gates Industrial Corp. plc* |
17,670 | 197,021 | ||||||
Gorman-Rupp Co. (The) |
1,674 | 45,432 | ||||||
Graco, Inc. |
5,606 | 390,066 | ||||||
Greenbrier Cos., Inc. (The)(a) |
4,278 | 151,056 | ||||||
Helios Technologies, Inc.(a) |
744 | 42,177 | ||||||
Hillenbrand, Inc.(a) |
17,112 | 756,008 | ||||||
Hyliion Holdings Corp.* (a) |
26,784 | 76,334 | ||||||
Hyster-Yale Materials Handling, Inc.(a) |
2,046 | 59,661 | ||||||
Ideanomics, Inc.* (a) |
930 | 284 | ||||||
IDEX Corp. |
2,405 | 534,656 | ||||||
Illinois Tool Works, Inc. |
7,812 | 1,668,096 | ||||||
Ingersoll Rand, Inc. |
9,300 | 469,650 | ||||||
ITT, Inc. |
4,836 | 369,422 | ||||||
John Bean Technologies Corp.(a) |
1,488 | 135,706 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Kadant, Inc.(a) |
372 | $ | 66,197 | |||||
Kennametal, Inc.(a) |
5,208 | 139,106 | ||||||
Lincoln Electric Holdings, Inc. |
2,035 | 288,970 | ||||||
Lindsay Corp.(a) |
372 | 62,980 | ||||||
Manitowoc Co., Inc. (The)* |
3,348 | 30,534 | ||||||
Middleby Corp. (The)* (a) |
1,860 | 260,140 | ||||||
Mueller Industries, Inc.(a) |
14,043 | 879,654 | ||||||
Mueller Water Products, Inc., Class A(a) |
5,394 | 63,110 | ||||||
Nikola Corp.* (a) |
29,045 | 110,081 | ||||||
Nordson Corp. |
1,302 | 292,950 | ||||||
Oshkosh Corp.(a) |
15,066 | 1,325,808 | ||||||
Otis Worldwide Corp. |
11,346 | 801,481 | ||||||
PACCAR, Inc.(a) |
10,730 | 1,038,986 | ||||||
Parker-Hannifin Corp. |
3,348 | 972,996 | ||||||
Pentair plc |
4,092 | 175,751 | ||||||
Proterra, Inc.* (a) |
17,856 | 111,421 | ||||||
Proto Labs, Inc.* (a) |
1,488 | 56,827 | ||||||
RBC Bearings, Inc.* (a) |
1,674 | 424,409 | ||||||
REV Group, Inc.(a) |
7,068 | 97,114 | ||||||
Snap-on, Inc.(a) |
1,674 | 371,712 | ||||||
SPX Technologies, Inc.* (a) |
1,488 | 97,970 | ||||||
Standex International Corp.(a) |
186 | 18,423 | ||||||
Stanley Black & Decker, Inc. |
5,208 | 408,776 | ||||||
Tennant Co.(a) |
2,220 | 129,315 | ||||||
Terex Corp. |
14,694 | 595,695 | ||||||
Timken Co. (The) |
14,880 | 1,060,795 | ||||||
Toro Co. (The)(a) |
3,348 | 352,980 | ||||||
Trinity Industries, Inc.(a) |
2,976 | 84,905 | ||||||
Wabash National Corp. |
7,068 | 153,022 | ||||||
Watts Water Technologies, Inc., Class A(a) |
930 | 136,115 | ||||||
Westinghouse Air Brake Technologies Corp. |
5,022 | 468,452 | ||||||
Xylem, Inc.(a) |
5,394 | 552,507 | ||||||
30,938,490 | ||||||||
Marine – 0.1% | ||||||||
Eagle Bulk Shipping, Inc.(a) |
2,418 | 116,983 | ||||||
Genco Shipping & Trading Ltd. |
5,766 | 77,264 | ||||||
Kirby Corp.* |
4,255 | 296,786 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 173 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Marine – (continued) | ||||||||
Matson, Inc. |
9,805 | $ | 721,452 | |||||
1,212,485 | ||||||||
Media – 1.1% | ||||||||
Advantage Solutions, Inc.* (a) |
30,132 | 101,846 | ||||||
Altice USA, Inc., Class A* |
51,430 | 339,952 | ||||||
AMC Networks, Inc., Class A* |
3,162 | 71,177 | ||||||
Cable One, Inc.(a) |
132 | 113,445 | ||||||
Cardlytics, Inc.* (a) |
2,232 | 21,048 | ||||||
Charter Communications, Inc., Class A* |
3,515 | 1,292,184 | ||||||
Clear Channel Outdoor Holdings, Inc.* (a) |
101,554 | 145,222 | ||||||
Comcast Corp., Class A |
143,375 | 4,550,723 | ||||||
DISH Network Corp., Class A* (a) |
7,998 | 119,250 | ||||||
EW Scripps Co. (The), Class A* (a) |
14,694 | 208,508 | ||||||
Fox Corp., Class A |
7,998 | 230,902 | ||||||
Fox Corp., Class B |
6,845 | 186,184 | ||||||
Gannett Co., Inc.* (a) |
38,315 | 55,557 | ||||||
Gray Television, Inc. |
22,015 | 311,512 | ||||||
iHeartMedia, Inc., Class A* (a) |
27,528 | 227,932 | ||||||
Interpublic Group of Cos., Inc. (The) |
11,346 | 337,997 | ||||||
John Wiley & Sons, Inc., Class A(a) |
10,788 | 455,146 | ||||||
Liberty Broadband Corp., Class A* |
558 | 47,609 | ||||||
Liberty Broadband Corp., Class C* |
3,906 | 329,784 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class A* (a) |
2,046 | 86,832 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class C* |
4,836 | 204,031 | ||||||
Magnite, Inc.* (a) |
30,132 | 219,662 | ||||||
New York Times Co. (The), Class A(a) |
10,044 | 290,874 | ||||||
News Corp., Class A |
9,672 | 163,167 | ||||||
News Corp., Class B(a) |
3,162 | 54,165 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
Nexstar Media Group, Inc., Class A(a) |
9,065 | $ | 1,552,834 | |||||
Omnicom Group, Inc. |
7,068 | 514,197 | ||||||
Paramount Global, Class A(a) |
1,116 | 23,525 | ||||||
Paramount Global, Class B(a) |
19,716 | 361,197 | ||||||
PubMatic, Inc., Class A* (a) |
930 | 16,182 | ||||||
Scholastic Corp.(a) |
744 | 28,376 | ||||||
Sinclair Broadcast Group, Inc., Class A(a) |
12,090 | 215,323 | ||||||
Sirius XM Holdings, Inc.(a) |
30,470 | 184,039 | ||||||
TechTarget, Inc.* (a) |
1,116 | 72,038 | ||||||
TEGNA, Inc. |
51,893 | 1,083,526 | ||||||
Thryv Holdings, Inc.* (a) |
4,070 | 83,272 | ||||||
Trade Desk, Inc. (The), Class A* |
11,346 | 604,061 | ||||||
WideOpenWest, Inc.* (a) |
6,696 | 91,802 | ||||||
14,995,081 | ||||||||
Metals & Mining – 0.7% | ||||||||
Alcoa Corp. |
7,254 | 283,124 | ||||||
Alpha Metallurgical Resources, Inc. |
3,534 | 596,716 | ||||||
Arconic Corp.* |
22,692 | 471,086 | ||||||
ATI, Inc.* (a) |
9,250 | 275,280 | ||||||
Carpenter Technology Corp.(a) |
4,440 | 166,056 | ||||||
Century Aluminum Co.* (a) |
10,044 | 72,417 | ||||||
Cleveland-Cliffs, Inc.* (a) |
18,972 | 246,446 | ||||||
Coeur Mining, Inc.* (a) |
6,882 | 26,014 | ||||||
Commercial Metals Co.(a) |
29,143 | 1,326,007 | ||||||
Compass Minerals International, Inc. |
930 | 36,772 | ||||||
Freeport-McMoRan, Inc. |
45,755 | 1,449,976 | ||||||
Hecla Mining Co.(a) |
14,880 | 68,002 | ||||||
Kaiser Aluminum Corp.(a) |
1,302 | 105,189 | ||||||
Materion Corp.(a) |
558 | 47,826 | ||||||
MP Materials Corp.* (a) |
4,278 | 128,511 | ||||||
Newmont Corp. |
24,738 | 1,046,912 | ||||||
Nucor Corp.(a) |
9,114 | 1,197,397 | ||||||
Piedmont Lithium, Inc.* (a) |
3,348 | 208,313 | ||||||
Reliance Steel & Aluminum Co. |
2,418 | 487,179 |
See Accompanying Notes to the Financial Statements.
174 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Royal Gold, Inc. |
1,480 | $ | 140,541 | |||||
Ryerson Holding Corp. |
2,035 | 68,274 | ||||||
Schnitzer Steel Industries, Inc., Class A |
3,515 | 94,870 | ||||||
Southern Copper Corp.(a) |
1,860 | 87,364 | ||||||
Steel Dynamics, Inc.(a) |
6,646 | 625,056 | ||||||
SunCoke Energy, Inc.(a) |
8,928 | 64,817 | ||||||
TimkenSteel Corp.* (a) |
9,300 | 162,192 | ||||||
United States Steel Corp.(a) |
9,300 | 189,348 | ||||||
Warrior Met Coal, Inc. |
9,858 | 366,126 | ||||||
Worthington Industries, Inc.(a) |
8,140 | 387,138 | ||||||
10,424,949 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.6% | ||||||||
AGNC Investment Corp.(a) |
121,827 | 1,001,418 | ||||||
Annaly Capital Management, Inc.(a) |
11,470 | 212,769 | ||||||
Apollo Commercial Real Estate Finance, Inc.(a) |
31,620 | 356,041 | ||||||
Arbor Realty Trust, Inc.(a) |
37,943 | 522,475 | ||||||
Ares Commercial Real Estate Corp.(a) |
7,030 | 86,750 | ||||||
ARMOUR Residential REIT, Inc.(a) |
26,085 | 138,772 | ||||||
Blackstone Mortgage Trust, Inc., Class A(a) |
36,075 | 900,432 | ||||||
BrightSpire Capital, Inc.(a) |
17,484 | 134,277 | ||||||
Broadmark Realty Capital, Inc.(a) |
18,870 | 109,823 | ||||||
Chimera Investment Corp.(a) |
50,963 | 344,000 | ||||||
Dynex Capital, Inc.(a) |
5,365 | 64,058 | ||||||
Ellington Financial, Inc.(a) |
15,996 | 214,027 | ||||||
Granite Point Mortgage Trust, Inc.(a) |
20,088 | 157,892 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a) |
4,092 | 111,221 | ||||||
Invesco Mortgage Capital, Inc.(a) |
9,301 | 108,910 | ||||||
KKR Real Estate Finance Trust, Inc.(a) |
16,182 | 281,891 | ||||||
Ladder Capital Corp. |
7,254 | 77,400 |
Investments | Shares | Value | ||||||
Mortgage Real Estate Investment Trusts (REITs) – (continued) | ||||||||
MFA Financial, Inc.(a) |
19,902 | $ | 198,224 | |||||
New York Mortgage Trust, Inc.(a) |
82,768 | 222,646 | ||||||
Orchid Island Capital, Inc.(a) |
13,503 | 135,975 | ||||||
PennyMac Mortgage Investment Trust(a) |
15,725 | 218,106 | ||||||
Ready Capital Corp.(a) |
17,760 | 215,251 | ||||||
Redwood Trust, Inc.(a) |
22,940 | 163,562 | ||||||
Rithm Capital Corp.(a) |
107,505 | 906,267 | ||||||
Starwood Property Trust, Inc.(a) |
69,190 | 1,429,465 | ||||||
TPG RE Finance Trust, Inc.(a) |
11,532 | 97,676 | ||||||
Two Harbors Investment Corp.(a) |
82,024 | 292,006 | ||||||
8,701,334 | ||||||||
Multiline Retail – 0.5% | ||||||||
Big Lots, Inc.(a) |
4,070 | 76,801 | ||||||
Dillard’s, Inc., Class A(a) |
424 | 139,407 | ||||||
Dollar General Corp.(a) |
6,290 | 1,604,265 | ||||||
Dollar Tree, Inc.* (a) |
6,132 | 971,922 | ||||||
Franchise Group, Inc.(a) |
7,812 | 237,094 | ||||||
Kohl’s Corp.(a) |
6,138 | 183,833 | ||||||
Macy’s, Inc. |
10,230 | 213,295 | ||||||
Nordstrom, Inc.(a) |
24,552 | 499,388 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.* (a) |
3,348 | 187,488 | ||||||
Target Corp. |
15,066 | 2,474,590 | ||||||
6,588,083 | ||||||||
Multi-Utilities – 0.7% | ||||||||
Ameren Corp. |
6,510 | 530,695 | ||||||
Avista Corp.(a) |
2,790 | 114,474 | ||||||
Black Hills Corp. |
4,413 | 288,478 | ||||||
CenterPoint Energy, Inc.(a) |
18,870 | 539,871 | ||||||
CMS Energy Corp. |
8,184 | 466,897 | ||||||
Consolidated Edison, Inc. |
10,915 | 960,083 | ||||||
Dominion Energy, Inc. |
26,640 | 1,864,001 | ||||||
DTE Energy Co. |
5,735 | 642,951 | ||||||
NiSource, Inc. |
13,231 | 339,904 | ||||||
NorthWestern Corp.(a) |
12,090 | 638,715 | ||||||
Public Service Enterprise Group, Inc. |
14,245 | 798,717 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 175 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Multi-Utilities – (continued) | ||||||||
Sempra Energy |
9,990 | $ | 1,507,891 | |||||
Unitil Corp. |
2,220 | 117,016 | ||||||
WEC Energy Group, Inc. |
8,556 | 781,419 | ||||||
9,591,112 | ||||||||
Oil, Gas & Consumable Fuels – 5.9% | ||||||||
Antero Midstream Corp.(a) |
78,862 | 839,880 | ||||||
Antero Resources Corp.* (a) |
10,915 | 400,144 | ||||||
APA Corp.(a) |
12,395 | 563,477 | ||||||
Arch Resources, Inc. |
4,278 | 651,497 | ||||||
Archaea Energy, Inc.* |
4,625 | 119,371 | ||||||
Berry Corp. |
12,834 | 113,837 | ||||||
Brigham Minerals, Inc., Class A(a) |
5,365 | 166,315 | ||||||
California Resources Corp.(a) |
15,540 | 701,009 | ||||||
Callon Petroleum Co.* (a) |
10,788 | 474,240 | ||||||
Centrus Energy Corp., Class A* (a) |
2,046 | 96,796 | ||||||
Cheniere Energy, Inc. |
8,370 | 1,476,552 | ||||||
Chesapeake Energy Corp.(a) |
3,924 | 401,307 | ||||||
Chevron Corp. |
59,940 | 10,843,146 | ||||||
Chord Energy Corp.(a) |
8,875 | 1,358,674 | ||||||
Civitas Resources, Inc. |
12,765 | 892,407 | ||||||
Clean Energy Fuels Corp.* (a) |
3,162 | 21,217 | ||||||
CNX Resources Corp.* |
46,620 | 783,682 | ||||||
Comstock Resources, Inc.* (a) |
17,856 | 335,336 | ||||||
ConocoPhillips |
42,593 | 5,370,551 | ||||||
CONSOL Energy, Inc. |
6,290 | 396,396 | ||||||
Continental Resources, Inc.(a) |
2,851 | 210,888 | ||||||
Coterra Energy, Inc.(a) |
26,971 | 839,606 | ||||||
Crescent Energy Co., Class A |
2,790 | 38,446 | ||||||
CVR Energy, Inc.(a) |
8,695 | 339,627 | ||||||
Delek US Holdings, Inc.(a) |
6,290 | 186,561 | ||||||
Denbury, Inc.* |
10,360 | 947,008 | ||||||
Devon Energy Corp. |
20,720 | 1,602,692 | ||||||
Diamondback Energy, Inc.(a) |
6,324 | 993,564 | ||||||
Dorian LPG Ltd. |
8,370 | 151,246 | ||||||
DT Midstream, Inc. |
21,948 | 1,310,296 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Earthstone Energy, Inc., Class A* (a) |
6,324 | $ | 102,196 | |||||
Enviva, Inc.(a) |
555 | 33,211 | ||||||
EOG Resources, Inc. |
18,870 | 2,576,132 | ||||||
EQT Corp. |
12,090 | 505,846 | ||||||
Equitrans Midstream Corp.(a) |
90,465 | 761,715 | ||||||
Excelerate Energy, Inc., Class A(a) |
3,906 | 107,884 | ||||||
Exxon Mobil Corp. |
137,640 | 15,251,888 | ||||||
Gevo, Inc.* (a) |
372 | 837 | ||||||
Gran Tierra Energy, Inc.* (a) |
54,125 | 73,069 | ||||||
Green Plains, Inc.* (a) |
5,022 | 145,085 | ||||||
Gulfport Energy Corp.* (a) |
1,295 | 115,915 | ||||||
Hess Corp. |
7,955 | 1,122,291 | ||||||
HF Sinclair Corp. |
31,992 | 1,956,951 | ||||||
International Seaways, Inc.(a) |
3,720 | 157,765 | ||||||
Kinder Morgan, Inc.(a) |
61,605 | 1,116,283 | ||||||
Kosmos Energy Ltd.* (a) |
97,276 | 631,321 | ||||||
Laredo Petroleum, Inc.* (a) |
2,960 | 191,364 | ||||||
Magnolia Oil & Gas Corp., Class A(a) |
34,965 | 897,901 | ||||||
Marathon Oil Corp. |
24,975 | 760,489 | ||||||
Marathon Petroleum Corp. |
16,926 | 1,923,132 | ||||||
Matador Resources Co.(a) |
24,738 | 1,643,840 | ||||||
Murphy Oil Corp.(a) |
32,364 | 1,569,978 | ||||||
New Fortress Energy, Inc.(a) |
2,604 | 143,402 | ||||||
NextDecade Corp.* (a) |
3,348 | 23,436 | ||||||
Northern Oil and Gas, Inc.(a) |
13,505 | 461,061 | ||||||
Occidental Petroleum Corp.(a) |
25,715 | 1,866,909 | ||||||
ONEOK, Inc.(a) |
13,690 | 812,091 | ||||||
Ovintiv, Inc.(a) |
9,818 | 497,282 | ||||||
Par Pacific Holdings, Inc.* |
6,845 | 156,614 | ||||||
PBF Energy, Inc., Class A* (a) |
21,948 | 971,199 | ||||||
PDC Energy, Inc. |
22,755 | 1,641,546 | ||||||
Peabody Energy Corp.* (a) |
25,854 | 617,911 | ||||||
Permian Resources Corp.* (a) |
38,687 | 377,972 | ||||||
Phillips 66(a) |
14,985 | 1,562,786 | ||||||
Pioneer Natural Resources Co.(a) |
7,585 | 1,944,870 |
See Accompanying Notes to the Financial Statements.
176 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Range Resources Corp. |
15,355 | $ | 437,310 | |||||
Ranger Oil Corp. |
5,394 | 220,615 | ||||||
Ring Energy, Inc.* (a) |
15,252 | 48,654 | ||||||
SilverBow Resources, Inc.* (a) |
1,110 | 39,372 | ||||||
SM Energy Co. |
26,270 | 1,181,625 | ||||||
Southwestern Energy Co.* |
45,510 | 315,384 | ||||||
Talos Energy, Inc.* |
11,655 | 248,018 | ||||||
Targa Resources Corp. |
7,030 | 480,641 | ||||||
Tellurian, Inc.* (a) |
15,810 | 42,687 | ||||||
Texas Pacific Land Corp.(a) |
186 | 428,520 | ||||||
Uranium Energy Corp.* (a) |
3,534 | 14,878 | ||||||
Valero Energy Corp. |
12,648 | 1,587,956 | ||||||
W&T Offshore, Inc.* (a) |
30,895 | 234,493 | ||||||
Williams Cos., Inc. (The) |
34,410 | 1,126,239 | ||||||
World Fuel Services Corp.(a) |
13,206 | 336,621 | ||||||
82,090,953 | ||||||||
Paper & Forest Products – 0.1% | ||||||||
Clearwater Paper Corp.* |
2,418 | 107,553 | ||||||
Glatfelter Corp.(a) |
7,068 | 20,002 | ||||||
Louisiana-Pacific Corp.(a) |
18,107 | 1,025,762 | ||||||
Mercer International, Inc. |
10,416 | 139,783 | ||||||
Resolute Forest Products, Inc.* (a) |
6,882 | 143,214 | ||||||
Sylvamo Corp. |
6,324 | 304,627 | ||||||
1,740,941 | ||||||||
Personal Products – 0.2% | ||||||||
Beauty Health Co. (The)* (a) |
5,766 | 65,905 | ||||||
BellRing Brands, Inc.* (a) |
5,208 | 126,138 | ||||||
Coty, Inc., Class A* (a) |
21,948 | 147,271 | ||||||
Edgewell Personal Care Co.(a) |
4,637 | 181,724 | ||||||
elf Beauty, Inc.* |
744 | 32,185 | ||||||
Estee Lauder Cos., Inc. (The), Class A |
5,920 | 1,186,901 | ||||||
Herbalife Nutrition Ltd.* (a) |
21,275 | 452,307 | ||||||
Honest Co., Inc. (The)* |
2,976 | 9,851 | ||||||
Inter Parfums, Inc.(a) |
558 | 45,131 | ||||||
Medifast, Inc. |
558 | 65,280 |
Investments | Shares | Value | ||||||
Personal Products – (continued) | ||||||||
Nu Skin Enterprises, Inc., Class A(a) |
12,090 | $ | 461,717 | |||||
USANA Health Sciences, Inc.* |
186 | 9,767 | ||||||
Veru, Inc.* (a) |
186 | 2,277 | ||||||
2,786,454 | ||||||||
Pharmaceuticals – 3.6% | ||||||||
Aclaris Therapeutics, Inc.* |
744 | 11,614 | ||||||
Amneal Pharmaceuticals, Inc.* (a) |
35,339 | 77,746 | ||||||
Amphastar Pharmaceuticals, Inc.* (a) |
1,116 | 34,484 | ||||||
ANI Pharmaceuticals, Inc.* (a) |
186 | 7,178 | ||||||
Arvinas, Inc.* (a) |
3,348 | 166,429 | ||||||
Atea Pharmaceuticals, Inc.* (a) |
14,880 | 89,280 | ||||||
Axsome Therapeutics, Inc.* (a) |
1,860 | 83,979 | ||||||
Bristol-Myers Squibb Co. |
70,306 | 5,446,606 | ||||||
Cara Therapeutics, Inc.* (a) |
1,116 | 10,490 | ||||||
Cassava Sciences, Inc.* (a) |
9,300 | 338,892 | ||||||
Catalent, Inc.* |
5,022 | 330,096 | ||||||
Collegium Pharmaceutical, Inc.* |
10,230 | 183,526 | ||||||
Corcept Therapeutics, Inc.* (a) |
5,022 | 143,629 | ||||||
DICE Therapeutics, Inc.* (a) |
1,302 | 46,234 | ||||||
Elanco Animal Health, Inc.* |
15,066 | 198,721 | ||||||
Eli Lilly & Co. |
21,018 | 7,610,408 | ||||||
Evolus, Inc.* (a) |
2,046 | 17,514 | ||||||
Harmony Biosciences Holdings, Inc.* (a) |
744 | 38,688 | ||||||
Innoviva, Inc.* (a) |
10,416 | 141,241 | ||||||
Intra-Cellular Therapies, Inc.* |
4,836 | 220,860 | ||||||
Jazz Pharmaceuticals plc* |
1,860 | 267,449 | ||||||
Johnson & Johnson |
69,190 | 12,036,984 | ||||||
Merck & Co., Inc. |
84,070 | 8,507,884 | ||||||
Nektar Therapeutics* |
7,812 | 29,373 | ||||||
NGM Biopharmaceuticals, Inc.* (a) |
1,488 | 7,946 | ||||||
Organon & Co.(a) |
6,882 | 180,171 | ||||||
Pacira BioSciences, Inc.* (a) |
1,295 | 67,029 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 177 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Perrigo Co. plc |
28,675 | $ | 1,155,029 | |||||
Pfizer, Inc. |
185,623 | 8,640,751 | ||||||
Phibro Animal Health Corp., Class A |
2,046 | 30,056 | ||||||
Prestige Consumer Healthcare, Inc.* |
12,580 | 685,358 | ||||||
Reata Pharmaceuticals, Inc., Class A* (a) |
2,232 | 71,870 | ||||||
Relmada Therapeutics, Inc.* (a) |
7,955 | 50,833 | ||||||
Revance Therapeutics, Inc.* |
3,162 | 70,544 | ||||||
Royalty Pharma plc, Class A |
13,392 | 566,749 | ||||||
SIGA Technologies, Inc.(a) |
8,742 | 80,339 | ||||||
Supernus Pharmaceuticals, Inc.* (a) |
4,810 | 164,839 | ||||||
Tilray Brands, Inc.* |
123,687 | 503,406 | ||||||
Viatris, Inc. |
38,129 | 386,247 | ||||||
Zoetis, Inc. |
12,648 | 1,907,066 | ||||||
50,607,538 | ||||||||
Professional Services – 0.8% | ||||||||
Alight, Inc., Class A* (a) |
16,740 | 138,775 | ||||||
ASGN, Inc.* (a) |
3,348 | 283,843 | ||||||
Barrett Business Services, Inc. |
930 | 81,115 | ||||||
Booz Allen Hamilton Holding Corp. |
3,348 | 364,430 | ||||||
CACI International, Inc., Class A* |
5,550 | 1,687,366 | ||||||
CBIZ, Inc.* |
1,860 | 92,330 | ||||||
Clarivate plc* (a) |
8,556 | 88,383 | ||||||
CoStar Group, Inc.* |
10,915 | 902,889 | ||||||
Dun & Bradstreet Holdings, Inc. |
2,405 | 30,904 | ||||||
Equifax, Inc.(a) |
3,162 | 536,085 | ||||||
Exponent, Inc. |
2,035 | 193,854 | ||||||
First Advantage Corp.* (a) |
744 | 10,453 | ||||||
Forrester Research, Inc.* |
186 | 7,872 | ||||||
FTI Consulting, Inc.* (a) |
1,674 | 260,525 | ||||||
Heidrick & Struggles International, Inc. |
5,208 | 146,657 | ||||||
Huron Consulting Group, Inc.* |
558 | 41,086 |
Investments | Shares | Value | ||||||
Professional Services – (continued) | ||||||||
ICF International, Inc.(a) |
558 | $ | 66,754 | |||||
Insperity, Inc. |
1,295 | 152,836 | ||||||
Jacobs Solutions, Inc. |
3,885 | 447,630 | ||||||
KBR, Inc.(a) |
8,742 | 435,089 | ||||||
Kelly Services, Inc., Class A |
8,184 | 133,727 | ||||||
Kforce, Inc. |
372 | 23,536 | ||||||
Korn Ferry(a) |
12,276 | 682,423 | ||||||
Leidos Holdings, Inc. |
3,906 | 396,811 | ||||||
ManpowerGroup, Inc. |
12,090 | 947,131 | ||||||
Planet Labs PBC* |
11,718 | 61,519 | ||||||
Resources Connection, Inc.(a) |
5,952 | 108,743 | ||||||
Robert Half International, Inc. |
3,720 | 284,431 | ||||||
Science Applications International Corp.(a) |
11,840 | 1,282,746 | ||||||
Sterling Check Corp.* (a) |
744 | 14,530 | ||||||
TransUnion |
5,022 | 297,654 | ||||||
TriNet Group, Inc.* |
1,302 | 84,604 | ||||||
TrueBlue, Inc.* |
2,604 | 51,195 | ||||||
Upwork, Inc.* |
8,370 | 112,576 | ||||||
Verisk Analytics, Inc. |
4,092 | 748,140 | ||||||
11,198,642 | ||||||||
Real Estate Management & Development – 0.2% | ||||||||
Anywhere Real Estate, Inc.* (a) |
30,504 | 226,645 | ||||||
CBRE Group, Inc., Class A* |
10,788 | 765,301 | ||||||
Cushman & Wakefield plc* (a) |
34,038 | 393,139 | ||||||
DigitalBridge Group, Inc. |
6,464 | 82,739 | ||||||
Doma Holdings, Inc.* (a) |
63,983 | 34,717 | ||||||
Douglas Elliman, Inc.(a) |
22,320 | 103,118 | ||||||
eXp World Holdings, Inc.(a) |
2,790 | 36,856 | ||||||
Forestar Group, Inc.* (a) |
9,114 | 105,540 | ||||||
Howard Hughes Corp. (The)* |
2,220 | 136,197 | ||||||
Jones Lang LaSalle, Inc.* |
2,035 | 323,748 | ||||||
Kennedy-Wilson Holdings, Inc. |
7,998 | 132,847 | ||||||
Newmark Group, Inc., Class A |
35,711 | 292,473 | ||||||
Offerpad Solutions, Inc.* (a) |
22,878 | 22,294 | ||||||
Opendoor Technologies, Inc.* (a) |
130,055 | 336,842 |
See Accompanying Notes to the Financial Statements.
178 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
RE/MAX Holdings, Inc., Class A |
7,585 | $ | 147,604 | |||||
Redfin Corp.* (a) |
5,580 | 26,840 | ||||||
RMR Group, Inc. (The), Class A(a) |
372 | 10,182 | ||||||
Seritage Growth Properties, Class A, REIT* (a) |
14,508 | 155,671 | ||||||
St Joe Co. (The)(a) |
558 | 19,826 | ||||||
WeWork, Inc.* (a) |
12,090 | 31,071 | ||||||
Zillow Group, Inc., Class A* |
558 | 17,259 | ||||||
Zillow Group, Inc., Class C* (a) |
5,208 | 160,719 | ||||||
3,561,628 | ||||||||
Road & Rail – 1.0% | ||||||||
AMERCO |
186 | 106,985 | ||||||
ArcBest Corp.(a) |
5,208 | 413,672 | ||||||
Avis Budget Group, Inc.* (a) |
1,379 | 326,078 | ||||||
CSX Corp. |
56,729 | 1,648,545 | ||||||
Daseke, Inc.* (a) |
10,416 | 62,079 | ||||||
Heartland Express, Inc.(a) |
5,766 | 85,798 | ||||||
Hertz Global Holdings, Inc.* (a) |
2,220 | 40,848 | ||||||
JB Hunt Transport Services, Inc. |
2,232 | 381,828 | ||||||
Knight-Swift Transportation Holdings, Inc.(a) |
4,836 | 232,273 | ||||||
Landstar System, Inc.(a) |
1,860 | 290,569 | ||||||
Lyft, Inc., Class A* (a) |
8,184 | 119,814 | ||||||
Marten Transport Ltd. |
2,790 | 52,368 | ||||||
Norfolk Southern Corp. |
6,475 | 1,476,753 | ||||||
Old Dominion Freight Line, Inc. |
2,604 | 715,059 | ||||||
Ryder System, Inc.(a) |
10,788 | 868,542 | ||||||
Saia, Inc.* (a) |
1,302 | 258,916 | ||||||
Schneider National, Inc., Class B |
5,208 | 115,826 | ||||||
Uber Technologies, Inc.* |
66,970 | 1,779,393 | ||||||
Union Pacific Corp. |
16,280 | 3,209,439 | ||||||
Werner Enterprises, Inc. |
11,470 | 449,624 | ||||||
XPO Logistics, Inc.* (a) |
24,605 | 1,273,063 | ||||||
13,907,472 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – 3.7% | ||||||||
ACM Research, Inc., Class A* |
1,116 | $ | 7,142 | |||||
Advanced Micro Devices, Inc.* |
43,337 | 2,602,820 | ||||||
Allegro MicroSystems, Inc.* |
372 | 9,453 | ||||||
Alpha & Omega Semiconductor Ltd.* (a) |
5,766 | 188,837 | ||||||
Ambarella, Inc.* (a) |
1,674 | 91,618 | ||||||
Amkor Technology, Inc.(a) |
20,460 | 425,363 | ||||||
Analog Devices, Inc. |
14,136 | 2,016,076 | ||||||
Applied Materials, Inc. |
23,865 | 2,107,041 | ||||||
Axcelis Technologies, Inc.* |
1,116 | 64,728 | ||||||
Broadcom, Inc. |
13,392 | 6,295,847 | ||||||
CEVA, Inc.* |
3,348 | 92,606 | ||||||
Cirrus Logic, Inc.* (a) |
2,976 | 199,749 | ||||||
Cohu, Inc.* (a) |
1,302 | 42,862 | ||||||
Diodes, Inc.* (a) |
10,044 | 719,854 | ||||||
Enphase Energy, Inc.* |
3,534 | 1,084,938 | ||||||
Entegris, Inc. |
4,205 | 333,625 | ||||||
First Solar, Inc.* |
2,035 | 296,235 | ||||||
FormFactor, Inc.* |
2,418 | 48,868 | ||||||
Ichor Holdings Ltd.* (a) |
8,184 | 208,201 | ||||||
Impinj, Inc.* (a) |
1,488 | 170,569 | ||||||
Intel Corp. |
135,777 | 3,860,140 | ||||||
KLA Corp. |
3,906 | 1,236,054 | ||||||
Kulicke & Soffa Industries, Inc.(a) |
13,392 | 561,660 | ||||||
Lam Research Corp. |
3,720 | 1,505,782 | ||||||
Lattice Semiconductor Corp.* |
4,650 | 225,572 | ||||||
MACOM Technology Solutions Holdings, Inc.* |
1,488 | 86,111 | ||||||
Magnachip Semiconductor Corp.* |
5,394 | 53,670 | ||||||
Marvell Technology, Inc. |
22,506 | 893,038 | ||||||
MaxLinear, Inc.* |
3,534 | 109,130 | ||||||
Microchip Technology, Inc.(a) |
13,505 | 833,799 | ||||||
Micron Technology, Inc. |
36,827 | 1,992,341 | ||||||
MKS Instruments, Inc. |
3,348 | 275,038 | ||||||
Monolithic Power Systems, Inc.(a) |
1,116 | 378,826 | ||||||
NVIDIA Corp. |
66,587 | 8,987,247 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 179 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors a& Semiconductor Equipment – (continued) | ||||||||
NXP Semiconductors NV |
8,742 | $ | 1,277,031 | |||||
ON Semiconductor Corp.* (a) |
12,462 | 765,541 | ||||||
Onto Innovation, Inc.* (a) |
3,348 | 223,780 | ||||||
PDF Solutions, Inc.* (a) |
372 | 8,772 | ||||||
Photronics, Inc.* (a) |
16,182 | 262,472 | ||||||
Power Integrations, Inc. |
3,162 | 210,937 | ||||||
Qorvo, Inc.* |
4,092 | 352,239 | ||||||
QUALCOMM, Inc. |
37,199 | 4,376,834 | ||||||
Rambus, Inc.* (a) |
3,720 | 112,195 | ||||||
Semtech Corp.* |
3,534 | 97,856 | ||||||
Silicon Laboratories, Inc.* (a) |
2,035 | 233,862 | ||||||
SiTime Corp.* (a) |
558 | 50,114 | ||||||
Skyworks Solutions, Inc. |
4,836 | 415,944 | ||||||
SMART Global Holdings, Inc.* (a) |
9,300 | 125,829 | ||||||
SolarEdge Technologies, Inc.* (a) |
1,488 | 342,285 | ||||||
Synaptics, Inc.* |
1,674 | 148,316 | ||||||
Teradyne, Inc.(a) |
4,650 | 378,278 | ||||||
Texas Instruments, Inc. |
24,552 | 3,943,788 | ||||||
Ultra Clean Holdings, Inc.* |
11,160 | 347,188 | ||||||
Universal Display Corp.(a) |
2,790 | 265,664 | ||||||
Veeco Instruments, Inc.* (a) |
1,488 | 27,126 | ||||||
Wolfspeed, Inc.* (a) |
3,720 | 292,950 | ||||||
52,263,841 | ||||||||
Software – 6.5% | ||||||||
8x8, Inc.* (a) |
2,790 | 11,802 | ||||||
ACI Worldwide, Inc.* (a) |
5,394 | 131,236 | ||||||
Adeia, Inc.(a) |
22,570 | 252,333 | ||||||
Adobe, Inc.* |
12,210 | 3,888,885 | ||||||
Agilysys, Inc.* |
372 | 23,871 | ||||||
Alarm.com Holdings, Inc.* (a) |
3,534 | 207,941 | ||||||
Altair Engineering, Inc., Class A* (a) |
1,302 | 63,863 | ||||||
Alteryx, Inc., Class A* (a) |
4,255 | 207,346 | ||||||
American Software, Inc., Class A(a) |
1,302 | 22,303 | ||||||
Amplitude, Inc., Class A* (a) |
1,674 | 28,123 | ||||||
ANSYS, Inc.* |
2,590 | 572,804 | ||||||
Appfolio, Inc., Class A* (a) |
1,665 | 208,741 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
Appian Corp., Class A* (a) |
2,232 | $ | 108,966 | |||||
AppLovin Corp., Class A* (a) |
372 | 6,309 | ||||||
Asana, Inc., Class A* (a) |
5,394 | 111,116 | ||||||
Aspen Technology, Inc.* (a) |
930 | 224,549 | ||||||
Autodesk, Inc.* |
5,952 | 1,275,514 | ||||||
Avaya Holdings Corp.* (a) |
19,158 | 30,270 | ||||||
Bentley Systems, Inc., Class B(a) |
4,278 | 150,928 | ||||||
Bill.com Holdings, Inc.* (a) |
2,232 | 297,660 | ||||||
Black Knight, Inc.* |
3,348 | 202,454 | ||||||
Blackbaud, Inc.* (a) |
2,976 | 162,787 | ||||||
Blackline, Inc.* (a) |
3,348 | 187,488 | ||||||
Box, Inc., Class A* (a) |
5,394 | 156,696 | ||||||
BTRS Holdings, Inc., Class 1* (a) |
10,044 | 94,815 | ||||||
C3.ai, Inc., Class A* (a) |
6,510 | 85,346 | ||||||
Cadence Design Systems, Inc.* |
7,254 | 1,098,183 | ||||||
Cerence, Inc.* (a) |
1,116 | 19,195 | ||||||
Ceridian HCM Holding, Inc.* (a) |
5,180 | 342,864 | ||||||
ChannelAdvisor Corp.* |
3,720 | 85,709 | ||||||
Clear Secure, Inc., Class A* (a) |
1,488 | 40,206 | ||||||
Clearwater Analytics Holdings, Inc., Class A* (a) |
1,674 | 27,269 | ||||||
CommVault Systems, Inc.* (a) |
2,976 | 181,209 | ||||||
Confluent, Inc., Class A* (a) |
7,254 | 194,988 | ||||||
Consensus Cloud Solutions, Inc.* (a) |
3,720 | 208,841 | ||||||
Coupa Software, Inc.* |
5,022 | 267,321 | ||||||
Crowdstrike Holdings, Inc., Class A* |
5,766 | 929,479 | ||||||
CS Disco, Inc.* (a) |
930 | 9,970 | ||||||
Datadog, Inc., Class A* |
7,215 | 580,880 | ||||||
Digimarc Corp.* (a) |
744 | 12,157 | ||||||
Digital Turbine, Inc.* |
6,510 | 95,046 | ||||||
DocuSign, Inc.* (a) |
5,208 | 251,546 | ||||||
Dolby Laboratories, Inc., Class A |
4,278 | 285,942 | ||||||
DoubleVerify Holdings, Inc.* (a) |
744 | 21,747 | ||||||
Dropbox, Inc., Class A* (a) |
15,996 | 347,913 |
See Accompanying Notes to the Financial Statements.
180 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Duck Creek Technologies, Inc.* |
5,952 | $ | 71,067 | |||||
Dynatrace, Inc.* (a) |
7,030 | 247,737 | ||||||
E2open Parent Holdings, Inc.* (a) |
13,950 | 81,329 | ||||||
Ebix, Inc.(a) |
1,860 | 36,809 | ||||||
Elastic NV* |
2,604 | 166,526 | ||||||
Enfusion, Inc., Class A* |
744 | 10,542 | ||||||
Envestnet, Inc.* |
1,850 | 91,224 | ||||||
Everbridge, Inc.* |
2,418 | 75,756 | ||||||
Fair Isaac Corp.* (a) |
744 | 356,257 | ||||||
Five9, Inc.* |
1,860 | 112,084 | ||||||
Fortinet, Inc.* |
17,670 | 1,010,017 | ||||||
Freshworks, Inc., Class A* (a) |
2,790 | 37,916 | ||||||
Gitlab, Inc., Class A* (a) |
2,418 | 117,176 | ||||||
Guidewire Software, Inc.* |
3,330 | 197,835 | ||||||
HashiCorp, Inc., Class A* (a) |
2,976 | 91,452 | ||||||
HubSpot, Inc.* |
1,116 | 330,961 | ||||||
Intapp, Inc.* |
744 | 16,710 | ||||||
InterDigital, Inc. |
2,604 | 129,862 | ||||||
Intuit, Inc. |
7,626 | 3,260,115 | ||||||
Jamf Holding Corp.* (a) |
3,906 | 92,455 | ||||||
JFrog Ltd.* (a) |
4,092 | 103,937 | ||||||
KnowBe4, Inc., Class A* |
4,650 | 114,297 | ||||||
LivePerson, Inc.* (a) |
4,650 | 49,151 | ||||||
LiveRamp Holdings, Inc.* |
3,534 | 64,884 | ||||||
Manhattan Associates, Inc.* |
2,220 | 270,107 | ||||||
Marathon Digital Holdings, Inc.* (a) |
28,086 | 368,207 | ||||||
Matterport, Inc.* (a) |
18,972 | 66,212 | ||||||
Microsoft Corp. |
197,210 | 45,778,357 | ||||||
MicroStrategy, Inc., Class A* (a) |
372 | 99,514 | ||||||
Mitek Systems, Inc.* (a) |
930 | 10,518 | ||||||
Model N, Inc.* (a) |
744 | 28,272 | ||||||
Momentive Global, Inc.* |
10,602 | 82,272 | ||||||
N-able, Inc.* (a) |
2,976 | 32,230 | ||||||
nCino, Inc.* (a) |
3,906 | 122,961 | ||||||
NCR Corp.* (a) |
29,760 | 632,698 | ||||||
New Relic, Inc.* |
3,534 | 209,354 | ||||||
NortonLifeLock, Inc.(a) |
13,578 | 305,912 | ||||||
Nutanix, Inc., Class A* |
14,136 | 387,326 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
Olo, Inc., Class A* (a) |
3,720 | $ | 32,773 | |||||
OneSpan, Inc.* |
1,488 | 16,353 | ||||||
Oracle Corp. |
41,255 | 3,220,778 | ||||||
PagerDuty, Inc.* (a) |
4,464 | 111,332 | ||||||
Palantir Technologies, Inc., Class A* (a) |
49,475 | 434,885 | ||||||
Palo Alto Networks, Inc.* (a) |
8,325 | 1,428,487 | ||||||
Paycom Software, Inc.* |
1,302 | 450,492 | ||||||
Paycor HCM, Inc.* |
1,116 | 34,005 | ||||||
Paylocity Holding Corp.* |
1,116 | 258,678 | ||||||
Pegasystems, Inc.(a) |
3,348 | 124,579 | ||||||
Progress Software Corp.(a) |
740 | 37,762 | ||||||
PROS Holdings, Inc.* |
2,232 | 55,688 | ||||||
PTC, Inc.* |
2,418 | 284,913 | ||||||
Q2 Holdings, Inc.* (a) |
3,162 | 98,148 | ||||||
Qualtrics International, Inc., Class A* (a) |
9,114 | 109,095 | ||||||
Qualys, Inc.* (a) |
1,488 | 212,129 | ||||||
Rapid7, Inc.* (a) |
4,440 | 200,999 | ||||||
RingCentral, Inc., Class A* |
2,418 | 85,887 | ||||||
Riot Blockchain, Inc.* (a) |
30,132 | 207,610 | ||||||
Roper Technologies, Inc. |
2,590 | 1,073,659 | ||||||
Salesforce, Inc.* |
26,598 | 4,324,569 | ||||||
SentinelOne, Inc., Class A* (a) |
10,974 | 250,646 | ||||||
ServiceNow, Inc.* |
5,330 | 2,242,544 | ||||||
Smartsheet, Inc., Class A* (a) |
8,742 | 305,271 | ||||||
Splunk, Inc.* |
3,720 | 309,169 | ||||||
Sprinklr, Inc., Class A* |
1,674 | 15,485 | ||||||
Sprout Social, Inc., Class A* (a) |
2,418 | 145,878 | ||||||
SPS Commerce, Inc.* |
1,295 | 163,843 | ||||||
Sumo Logic, Inc.* |
5,394 | 41,588 | ||||||
Synopsys, Inc.* |
3,906 | 1,142,700 | ||||||
Tenable Holdings, Inc.* (a) |
5,394 | 219,212 | ||||||
Teradata Corp.* (a) |
5,580 | 176,272 | ||||||
Tyler Technologies, Inc.* |
925 | 299,080 | ||||||
UiPath, Inc., Class A* |
7,254 | 91,763 | ||||||
Unity Software, Inc.* (a) |
4,092 | 120,714 | ||||||
Upland Software, Inc.* |
5,208 | 41,872 | ||||||
Varonis Systems, Inc.* (a) |
6,882 | 184,231 | ||||||
Verint Systems, Inc.* |
2,046 | 72,490 | ||||||
Veritone, Inc.* (a) |
2,046 | 15,161 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 181 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Vertex, Inc., Class A* (a) |
2,976 | $ | 53,628 | |||||
VMware, Inc., Class A |
6,696 | 753,501 | ||||||
Workday, Inc., Class A* |
4,810 | 749,494 | ||||||
Workiva, Inc.* (a) |
1,674 | 130,254 | ||||||
Yext, Inc.* |
185 | 984 | ||||||
Zendesk, Inc.* |
2,790 | 213,965 | ||||||
Zoom Video Communications, Inc., Class A* (a) |
6,510 | 543,194 | ||||||
Zscaler, Inc.* (a) |
1,860 | 286,626 | ||||||
Zuora, Inc., Class A* |
9,858 | 75,808 | ||||||
90,422,844 | ||||||||
Specialty Retail – 2.5% | ||||||||
Aaron’s Co., Inc. (The) |
4,278 | 44,577 | ||||||
Abercrombie & Fitch Co., Class A* |
7,955 | 139,849 | ||||||
Academy Sports & Outdoors, Inc.(a) |
18,972 | 835,337 | ||||||
Advance Auto Parts, Inc.(a) |
1,860 | 353,251 | ||||||
American Eagle Outfitters, Inc.(a) |
34,224 | 388,785 | ||||||
America’s Car-Mart, Inc.* (a) |
1,488 | 101,720 | ||||||
Arko Corp.(a) |
2,790 | 28,598 | ||||||
Asbury Automotive Group, Inc.* (a) |
4,836 | 762,879 | ||||||
AutoNation, Inc.* |
1,850 | 196,673 | ||||||
AutoZone, Inc.* |
555 | 1,405,748 | ||||||
Bath & Body Works, Inc.(a) |
7,998 | 266,973 | ||||||
Best Buy Co., Inc.(a) |
7,440 | 508,970 | ||||||
Boot Barn Holdings, Inc.* (a) |
1,488 | 84,518 | ||||||
Buckle, Inc. (The)(a) |
7,068 | 277,984 | ||||||
Burlington Stores, Inc.* (a) |
1,674 | 239,315 | ||||||
Caleres, Inc.(a) |
7,812 | 213,502 | ||||||
Camping World Holdings, Inc., Class A(a) |
6,660 | 185,348 | ||||||
CarMax, Inc.* (a) |
4,836 | 304,716 | ||||||
Carvana Co.* (a) |
6,510 | 88,080 | ||||||
Chico’s FAS, Inc.* (a) |
25,296 | 148,740 | ||||||
Children’s Place, Inc. (The)* (a) |
3,348 | 135,527 | ||||||
Conn’s, Inc.* (a) |
3,534 | 29,014 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
Container Store Group, Inc. (The)* (a) |
7,998 | $ | 43,429 | |||||
Designer Brands, Inc., Class A |
12,276 | 186,963 | ||||||
Dick’s Sporting Goods, Inc.(a) |
13,505 | 1,536,329 | ||||||
EVgo, Inc.* (a) |
3,906 | 28,943 | ||||||
Five Below, Inc.* (a) |
1,116 | 163,327 | ||||||
Floor & Decor Holdings, Inc., Class A* (a) |
2,232 | 163,762 | ||||||
Foot Locker, Inc. |
16,280 | 516,076 | ||||||
GameStop Corp., Class A* (a) |
8,184 | 231,689 | ||||||
Gap, Inc. (The)(a) |
48,917 | 551,295 | ||||||
Genesco, Inc.* (a) |
2,232 | 104,993 | ||||||
Group 1 Automotive, Inc.(a) |
4,015 | 694,595 | ||||||
Guess?, Inc.(a) |
7,254 | 123,173 | ||||||
Haverty Furniture Cos., Inc. |
2,046 | 54,383 | ||||||
Hibbett, Inc. |
2,418 | 150,932 | ||||||
Home Depot, Inc. (The) |
27,010 | 7,998,471 | ||||||
JOANN, Inc.(a) |
1,488 | 7,872 | ||||||
Leslie’s, Inc.* (a) |
8,928 | 125,349 | ||||||
Lithia Motors, Inc., Class A(a) |
1,110 | 219,946 | ||||||
LL Flooring Holdings, Inc.* (a) |
6,510 | 54,163 | ||||||
Lowe’s Cos., Inc. |
21,460 | 4,183,627 | ||||||
MarineMax, Inc.* (a) |
6,138 | 198,319 | ||||||
Monro, Inc.(a) |
558 | 26,645 | ||||||
Murphy USA, Inc.(a) |
1,404 | 441,572 | ||||||
National Vision Holdings, Inc.* (a) |
3,348 | 124,010 | ||||||
ODP Corp. (The)* |
11,670 | 461,782 | ||||||
OneWater Marine, Inc., Class A* (a) |
744 | 24,552 | ||||||
O’Reilly Automotive, Inc.* |
1,801 | 1,507,743 | ||||||
Penske Automotive Group, Inc.(a) |
1,521 | 169,774 | ||||||
Petco Health & Wellness Co., Inc.* (a) |
3,534 | 37,213 | ||||||
Rent-A-Center, Inc.(a) |
13,392 | 279,223 | ||||||
RH* (a) |
558 | 141,693 | ||||||
Ross Stores, Inc. |
8,742 | 836,522 | ||||||
Sally Beauty Holdings, Inc.* (a) |
23,436 | 297,872 | ||||||
Shoe Carnival, Inc.(a) |
2,976 | 71,364 |
See Accompanying Notes to the Financial Statements.
182 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Signet Jewelers Ltd.(a) |
9,486 | $ | 618,867 | |||||
Sleep Number Corp.* (a) |
5,022 | 139,310 | ||||||
Sonic Automotive, Inc., Class A(a) |
5,705 | 266,709 | ||||||
Sportsman’s Warehouse Holdings, Inc.* (a) |
11,346 | 101,887 | ||||||
TJX Cos., Inc. (The) |
29,970 | 2,160,837 | ||||||
Tractor Supply Co. |
2,976 | 654,036 | ||||||
TravelCenters of America, Inc.* |
2,232 | 141,911 | ||||||
Ulta Beauty, Inc.* |
1,302 | 546,020 | ||||||
Urban Outfitters, Inc.* (a) |
10,360 | 247,190 | ||||||
Victoria’s Secret & Co.* (a) |
16,650 | 626,040 | ||||||
Warby Parker, Inc., Class A* (a) |
1,674 | 26,868 | ||||||
Williams-Sonoma, Inc.(a) |
2,418 | 299,421 | ||||||
Zumiez, Inc.* (a) |
5,952 | 133,503 | ||||||
34,460,304 | ||||||||
Technology Hardware, Storage & Peripherals – 4.7% | ||||||||
Apple, Inc. |
400,525 | 61,416,504 | ||||||
Corsair Gaming, Inc.* (a) |
8,184 | 112,939 | ||||||
Dell Technologies, Inc., Class C |
8,928 | 342,835 | ||||||
Hewlett Packard Enterprise Co.(a) |
44,453 | 634,344 | ||||||
HP, Inc. |
32,843 | 907,124 | ||||||
NetApp, Inc. |
6,696 | 463,832 | ||||||
Pure Storage, Inc., Class A* |
9,814 | 302,860 | ||||||
Seagate Technology Holdings plc |
7,440 | 369,470 | ||||||
Super Micro Computer, Inc.* |
11,160 | 776,625 | ||||||
Western Digital Corp.* |
10,416 | 357,998 | ||||||
Xerox Holdings Corp.(a) |
20,905 | 305,840 | ||||||
65,990,371 | ||||||||
Textiles, Apparel & Luxury Goods – 0.8% | ||||||||
Capri Holdings Ltd.* |
4,650 | 212,412 | ||||||
Carter’s, Inc.(a) |
9,486 | 643,815 | ||||||
Columbia Sportswear Co.(a) |
2,046 | 152,427 | ||||||
Crocs, Inc.* (a) |
14,136 | 1,000,122 | ||||||
Deckers Outdoor Corp.* (a) |
930 | 325,435 |
Investments | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Fossil Group, Inc.* |
12,648 | $ | 53,754 | |||||
G-III Apparel Group Ltd.* (a) |
5,022 | 97,929 | ||||||
Hanesbrands, Inc.(a) |
79,792 | 544,181 | ||||||
Kontoor Brands, Inc.(a) |
10,230 | 365,211 | ||||||
Levi Strauss & Co., Class A(a) |
5,208 | 77,912 | ||||||
Lululemon Athletica, Inc.* |
2,976 | 979,223 | ||||||
Movado Group, Inc.(a) |
1,860 | 61,510 | ||||||
NIKE, Inc., Class B |
33,852 | 3,137,403 | ||||||
Oxford Industries, Inc.(a) |
1,116 | 113,531 | ||||||
PVH Corp. |
14,880 | 763,642 | ||||||
Ralph Lauren Corp.(a) |
10,230 | 948,219 | ||||||
Skechers USA, Inc., Class A* |
6,510 | 224,139 | ||||||
Steven Madden Ltd. |
2,046 | 61,114 | ||||||
Tapestry, Inc.(a) |
10,360 | 328,205 | ||||||
Under Armour, Inc., Class A* (a) |
11,904 | 88,685 | ||||||
Under Armour, Inc., Class C* |
10,044 | 65,889 | ||||||
VF Corp. |
9,858 | 278,488 | ||||||
Wolverine World Wide, Inc.(a) |
19,716 | 337,735 | ||||||
10,860,981 | ||||||||
Thrifts & Mortgage Finance – 0.5% | ||||||||
Axos Financial, Inc.* |
12,276 | 478,273 | ||||||
Essent Group Ltd.(a) |
24,366 | 964,406 | ||||||
Federal Agricultural Mortgage Corp., Class C |
2,418 | 278,554 | ||||||
Merchants Bancorp |
3,348 | 80,185 | ||||||
MGIC Investment Corp. |
63,640 | 868,686 | ||||||
Mr Cooper Group, Inc.* |
17,760 | 701,342 | ||||||
New York Community Bancorp, Inc.(a) |
103,785 | 966,238 | ||||||
NMI Holdings, Inc., Class A* |
20,460 | 448,688 | ||||||
Northfield Bancorp, Inc.(a) |
4,810 | 77,152 | ||||||
PennyMac Financial Services, Inc.(a) |
8,325 | 443,889 | ||||||
Provident Financial Services, Inc.(a) |
14,880 | 333,610 | ||||||
Radian Group, Inc. |
40,163 | 838,202 | ||||||
Rocket Cos., Inc., Class A(a) |
29,946 | 206,627 | ||||||
TFS Financial Corp.(a) |
7,440 | 104,532 | ||||||
TrustCo Bank Corp. NY |
3,534 | 131,889 | ||||||
UWM Holdings Corp.(a) |
27,156 | 89,072 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 183 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Thrifts & Mortgage Finance – (continued) | ||||||||
Walker & Dunlop, Inc.(a) |
2,046 | $ | 184,058 | |||||
WSFS Financial Corp. |
12,950 | 602,952 | ||||||
7,798,355 | ||||||||
Tobacco – 0.6% | ||||||||
Altria Group, Inc. |
60,077 | 2,779,763 | ||||||
Philip Morris International, Inc. |
51,149 | 4,698,036 | ||||||
Turning Point Brands, Inc. |
1,488 | 35,057 | ||||||
Universal Corp.(a) |
7,030 | 355,788 | ||||||
Vector Group Ltd.(a) |
29,202 | 310,125 | ||||||
8,178,769 | ||||||||
Trading Companies & Distributors – 0.8% | ||||||||
Air Lease Corp. |
21,275 | 750,795 | ||||||
Applied Industrial Technologies, Inc. |
2,604 | 323,885 | ||||||
Beacon Roofing Supply, Inc.* (a) |
12,807 | 721,674 | ||||||
BlueLinx Holdings, Inc.* (a) |
2,046 | 144,161 | ||||||
Boise Cascade Co.(a) |
8,928 | 596,122 | ||||||
Core & Main, Inc., Class A* (a) |
370 | 8,725 | ||||||
Fastenal Co.(a) |
14,136 | 683,193 | ||||||
GATX Corp.(a) |
2,604 | 272,665 | ||||||
GMS, Inc.* (a) |
11,346 | 535,531 | ||||||
H&E Equipment Services, Inc.(a) |
3,534 | 133,444 | ||||||
Herc Holdings, Inc.(a) |
5,394 | 634,388 | ||||||
McGrath RentCorp |
2,035 | 191,392 | ||||||
MRC Global, Inc.* |
6,696 | 67,161 | ||||||
MSC Industrial Direct Co., Inc., Class A |
3,348 | 277,817 | ||||||
NOW, Inc.* |
12,213 | 155,471 | ||||||
Rush Enterprises, Inc., Class A |
8,140 | 406,105 | ||||||
SiteOne Landscape Supply, Inc.* (a) |
2,418 | 280,174 | ||||||
Titan Machinery, Inc.* |
2,232 | 76,736 | ||||||
Triton International Ltd.(a) |
15,269 | 926,676 | ||||||
United Rentals, Inc.* |
2,418 | 763,387 | ||||||
Univar Solutions, Inc.* |
38,129 | 971,527 | ||||||
Veritiv Corp.* (a) |
1,295 | 150,557 |
Investments | Shares | Value | ||||||
Trading Companies & Distributors – (continued) | ||||||||
Watsco, Inc.(a) |
744 | $ | 201,594 | |||||
WESCO International, Inc.* |
10,602 | 1,460,637 | ||||||
WW Grainger, Inc.(a) |
1,116 | 652,135 | ||||||
11,385,952 | ||||||||
Water Utilities – 0.1% | ||||||||
American States Water Co.(a) |
2,604 | 235,558 | ||||||
American Water Works Co., Inc.(a) |
4,650 | 675,831 | ||||||
California Water Service Group |
3,720 | 230,863 | ||||||
Essential Utilities, Inc.(a) |
4,810 | 212,698 | ||||||
Middlesex Water Co.(a) |
558 | 49,924 | ||||||
SJW Group(a) |
558 | 39,440 | ||||||
York Water Co. (The) |
2,220 | 96,703 | ||||||
1,541,017 | ||||||||
Wireless Telecommunication Services – 0.2% | ||||||||
Gogo, Inc.* (a) |
8,742 | 124,311 | ||||||
Shenandoah Telecommunications Co.(a) |
2,232 | 50,577 | ||||||
Telephone and Data Systems, Inc.(a) |
1,110 | 18,870 | ||||||
T-Mobile US, Inc.* |
15,540 | 2,355,243 | ||||||
2,549,001 | ||||||||
Total
Common Stocks (Cost $932,350,914) |
|
1,385,090,679 | ||||||
Number of Warrants |
||||||||
WARRANTS – 0.0%(d) | ||||||||
Oil, Gas & Consumable Fuels – 0.0%(d) | ||||||||
Occidental
Petroleum Corp., expiring 8/3/2027, price 22.00 USD* |
4,266 | 215,860 |
See Accompanying Notes to the Financial Statements.
184 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Number of Rights |
Value | ||||||
RIGHTS – 0.0%(d) | ||||||||
Biotechnology – 0.0%(d) | ||||||||
Achillion Pharmaceuticals, Inc., CVR* ‡ (d) |
44,344 | $ | 25,719 | |||||
Pharmaceuticals – 0.0%(d) | ||||||||
Zogenix, Inc., CVR* ‡ |
4,675 | 4,675 | ||||||
Total
Rights (Cost $0) |
|
30,394 | ||||||
Principal Amount |
||||||||
SECURITIES LENDING REINVESTMENTS(e) – 14.6% | ||||||||
CERTIFICATES OF DEPOSIT – 2.1% | ||||||||
Barclays Bank plc, New York |
|
|||||||
(SOFR + 0.52%), 3.56%, 4/5/2023(f) |
$ | 5,000,000 | 4,995,490 | |||||
Credit Agricole CIB, New York |
|
|||||||
(SOFR + 0.68%), 3.73%, 4/25/2023(f) |
6,000,000 | 5,999,400 | ||||||
MUFG Bank Ltd., New York Branch |
|
|||||||
(SOFR + 0.59%), 3.63%, 2/10/2023(f) |
5,000,000 | 5,000,115 | ||||||
Royal Bank of Canada |
|
|||||||
(US Federal Funds Effective Rate (continuous series) + 0.37%), 3.45%, 12/2/2022(f) |
7,000,000 | 7,000,000 | ||||||
The Sumitomo Bank Ltd., New York |
|
|||||||
(SOFR + 0.75%), 3.80%, 4/21/2023(f) |
6,000,000 | 6,000,042 | ||||||
Total
Certificates of Deposit (Cost $29,000,000) |
|
28,995,047 | ||||||
COMMERCIAL PAPER – 0.4% | ||||||||
Macquarie Bank Ltd. |
|
|||||||
(SOFR + 0.31%), 3.35%, 11/3/2022(f) (Cost $6,000,000) |
6,000,000 | 6,000,000 |
Investments | Principal Amount |
Value | ||||||
REPURCHASE AGREEMENTS – 12.1% | ||||||||
BofA Securities, Inc., 3.52%, dated 10/31/2022, due 1/31/2023, repurchase price $6,053,973, collateralized by various U.S. Treasury Securities, ranging from 0.13% – 4.13%, maturing 11/15/2023 – 2/15/2051; total market value $6,084,291 |
$ | 6,000,000 | $ | 6,000,000 | ||||
Citigroup Global Markets, Inc., 3.00%, dated 10/31/2022, due 11/1/2022, repurchase price $71,827,753, collateralized by various U.S. Treasury Securities, ranging from 0.75% – 5.50%, maturing 7/15/2028 – 1/15/2029; total market value $72,331,897 |
71,821,768 | 71,821,768 | ||||||
National Bank of Canada, 3.07%, dated 10/31/2022, due 11/7/2022, repurchase price $71,042,383, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.13%, maturing 12/1/2022 – 8/15/2052; total market value $71,972,852 |
71,000,000 | 71,000,000 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 185 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Principal Amount |
Value | ||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Societe Generale, New York Branch, 3.05%, dated 10/31/2022, due 11/7/2022, repurchase price $20,011,861, collateralized by various U.S. Treasury Securities, ranging from 0.63% – 2.88%, maturing 7/31/2026 – 7/31/2028; total market value $20,231,920 |
$ | 20,000,000 | $ | 20,000,000 | ||||
Total
Repurchase Agreements (Cost $168,821,768) |
|
168,821,768 | ||||||
Total
Securities Lending Reinvestments (Cost $203,821,768) |
|
203,816,815 | ||||||
Total
Investments – 113.7% (Cost $1,136,193,799) |
|
1,589,153,748 | ||||||
Liabilities in excess of other assets – (13.7%) |
|
(191,746,246 | ) | |||||
Net Assets – 100.0% |
|
$ | 1,397,407,502 |
* |
Non-income producing security. |
‡ |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(a) |
The security or a portion of this security is on loan at October 31, 2022. The total value of securities on loan at October 31, 2022 was $275,892,234, collateralized in the form of cash with a value of $203,821,768 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $78,031,431 of collateral in the form of U.S. Government |
Treasury Securities, interest rates ranging from 0.00% – 6.63%, and maturity dates ranging from November 15, 2022 – May 15, 2052 and $1,954,021 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from March 22, 2023 – June 30, 2120; a total value of $283,807,220. |
(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) |
Investment in affiliated company. Northern Trust Investments, Inc., the Investment Adviser of the Fund, is a subsidiary of Northern Trust Corporation. |
(d) |
Represents less than 0.05% of net assets. |
(e) |
The security was purchased with cash collateral held from securities on loan at October 31, 2022. The total value of securities purchased was $203,816,815. |
(f) |
Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of October 31, 2022. |
Percentages shown are based on Net Assets.
Abbreviations
CVR – Contingent Value Rights
SOFR – Secured Overnight Financing Rate
As of October 31, 2022, 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 |
$ | 511,863,428 | ||
Aggregate gross unrealized depreciation |
(59,056,132 | ) | ||
Net unrealized appreciation |
$ | 452,807,296 | ||
Federal income tax cost |
$ | 1,136,631,882 |
Investment in a company which was affiliated for the period ended October 31, 2022, was as follows:
Security |
Value October 31, 2021 |
Purchases at Cost |
Sales Proceeds |
Shares October 31, 2022 |
Value October 31, 2022 |
Change
in Unrealized Appreciation (Depreciation) |
Dividend Income |
Realized Gain |
||||||||||||||||||||||||
Northern Trust Corp. |
$ | 902,375 | $ | 79,744 | $ | 167,649 | 6,696 | $ | 564,807 | $ | (287,907 | ) | $ | 18,788 | $ | 38,244 |
See Accompanying Notes to the Financial Statements.
186 | FLEXSHARES ANNUAL REPORT |
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 October 31, 2022:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Appreciation* |
||||||||||||||||
Long Contracts |
|
|||||||||||||||||||
Russell 2000 E-Mini Index |
28 | 12/16/2022 | USD | $ | 2,594,200 | $ | 90,049 | |||||||||||||
S&P 500 E-Mini Index |
37 | 12/16/2022 | USD | 7,183,550 | 111,409 | |||||||||||||||
S&P Midcap 400 E-Mini Index |
8 | 12/16/2022 | USD | 1,951,680 | 83,972 | |||||||||||||||
$ | 285,430 |
* |
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
Security Type | % of Net Assets | |||
Common Stocks |
99.1 | % | ||
Warrants |
0.0 | † | ||
Rights |
0.0 | † | ||
Securities Lending Reinvestments |
14.6 | |||
Others(1) |
(13.7 | ) | ||
100.0 | % |
† |
Amount represents less than 0.05%. |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 187 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund
October 31, 2022
Investments | Shares | Value | ||||||
COMMON STOCKS – 97.5% | ||||||||
Aerospace & Defense – 1.1% | ||||||||
Airbus SE |
8,733 | $ | 945,814 | |||||
Austal Ltd.(a) |
66,789 | 106,343 | ||||||
Babcock International Group plc* |
168,633 | 535,093 | ||||||
BAE Systems plc |
51,168 | 479,782 | ||||||
Bombardier, Inc., Class B* (a) |
26,445 | 775,679 | ||||||
CAE, Inc.* (a) |
4,836 | 92,178 | ||||||
Chemring Group plc |
8,536 | 29,680 | ||||||
Dassault Aviation SA |
550 | 81,756 | ||||||
Elbit Systems Ltd. |
412 | 83,723 | ||||||
Hensoldt AG |
3,276 | 77,060 | ||||||
INVISIO AB(a) |
2,552 | 37,874 | ||||||
Kongsberg Gruppen ASA |
1,540 | 55,190 | ||||||
Leonardo SpA |
12,056 | 96,897 | ||||||
LISI |
880 | 17,378 | ||||||
Montana Aerospace AG* (b) |
1,496 | 17,161 | ||||||
MTU Aero Engines AG |
738 | 132,204 | ||||||
QinetiQ Group plc |
39,688 | 164,227 | ||||||
Rheinmetall AG |
779 | 126,653 | ||||||
Rolls-Royce Holdings plc* |
137,309 | 123,548 | ||||||
Saab AB, Class B |
1,596 | 56,356 | ||||||
Safran SA |
5,412 | 602,934 | ||||||
Singapore Technologies Engineering Ltd. |
17,900 | 41,743 | ||||||
Thales SA |
1,599 | 203,315 | ||||||
4,882,588 | ||||||||
Air Freight & Logistics – 0.6% | ||||||||
bpost SA(a) |
31,119 | 153,782 | ||||||
Cargojet, Inc. |
672 | 65,424 | ||||||
Cia de Distribucion Integral Logista Holdings SA |
21,976 | 454,817 | ||||||
Deutsche Post AG (Registered) |
19,926 | 707,207 | ||||||
DSV A/S |
2,665 | 360,874 | ||||||
Freightways Ltd.(a) |
6,248 | 37,568 | ||||||
Hitachi Transport System Ltd.(a) |
1,300 | 77,754 | ||||||
ID Logistics Group* |
81 | 21,775 | ||||||
International Distributions Services plc |
14,455 | 33,668 | ||||||
Kerry Logistics Network Ltd. |
18,500 | 29,365 | ||||||
Mainfreight Ltd.(a) |
1,892 | 83,580 |
Investments | Shares | Value | ||||||
Air Freight & Logistics – (continued) | ||||||||
Nippon Express Holdings, Inc. |
1,600 | $ | 80,412 | |||||
Oesterreichische Post AG(a) |
588 | 16,766 | ||||||
PostNL NV(a) |
158,515 | 248,633 | ||||||
SBS Holdings, Inc.(a) |
8,200 | 159,989 | ||||||
SG Holdings Co. Ltd. |
8,400 | 111,446 | ||||||
Singapore Post Ltd. |
101,200 | 38,618 | ||||||
Yamato Holdings Co. Ltd. |
6,200 | 91,935 | ||||||
2,773,613 | ||||||||
Airlines – 0.3% | ||||||||
Air Canada* |
5,192 | 74,642 | ||||||
Air France-KLM* |
375,437 | 494,071 | ||||||
Air New Zealand Ltd.* (a) |
11,968 | 5,423 | ||||||
ANA Holdings, Inc.* |
2,400 | 46,681 | ||||||
Deutsche Lufthansa AG (Registered)* |
11,748 | 80,616 | ||||||
easyJet plc* |
14,080 | 56,479 | ||||||
Exchange Income Corp.(a) |
2,952 | 98,468 | ||||||
Finnair OYJ* (a) |
82,324 | 34,905 | ||||||
Japan Airlines Co. Ltd.* |
2,800 | 52,276 | ||||||
JET2 plc* |
2,813 | 27,523 | ||||||
Qantas Airways Ltd.* |
22,968 | 85,771 | ||||||
Singapore Airlines Ltd.* |
16,799 | 62,443 | ||||||
Wizz Air Holdings plc* (a) (b) |
728 | 14,375 | ||||||
1,133,673 | ||||||||
Auto Components – 1.6% | ||||||||
Aisin Corp. |
4,300 | 110,368 | ||||||
ARB Corp. Ltd.(a) |
1,007 | 18,680 | ||||||
Brembo SpA |
3,647 | 38,136 | ||||||
Bridgestone Corp. |
12,000 | 432,899 | ||||||
Burelle SA |
132 | 55,577 | ||||||
CIE Automotive SA(a) |
15,539 | 395,314 | ||||||
Cie Generale des Etablissements Michelin SCA |
16,072 | 409,986 | ||||||
Cie Plastic Omnium SA |
17,835 | 250,130 | ||||||
Continental AG |
1,845 | 95,698 | ||||||
Denso Corp. |
8,200 | 407,697 | ||||||
Dometic Group AB(a) (c) |
5,962 | 34,130 | ||||||
Exedy Corp. |
12,300 | 144,239 | ||||||
Faurecia SE* |
5,146 | 76,883 | ||||||
Gestamp Automocion SA(b) |
46,043 | 161,822 |
See Accompanying Notes to the Financial Statements.
188 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
GUD Holdings Ltd.(a) |
6,543 | $ | 33,639 | |||||
Hella GmbH & Co. KGaA |
660 | 51,565 | ||||||
Johnson Electric Holdings Ltd.(a) |
144,778 | 149,207 | ||||||
JTEKT Corp. |
6,700 | 47,331 | ||||||
Koito Manufacturing Co. Ltd. |
5,000 | 71,114 | ||||||
KYB Corp. |
8,200 | 179,574 | ||||||
Linamar Corp. |
1,584 | 67,712 | ||||||
Magna International, Inc. |
5,781 | 321,758 | ||||||
Musashi Seimitsu Industry Co. Ltd.(a) |
16,400 | 189,449 | ||||||
NGK Spark Plug Co. Ltd. |
2,700 | 49,228 | ||||||
NHK Spring Co. Ltd. |
68,500 | 379,749 | ||||||
Nifco, Inc. |
2,400 | 55,788 | ||||||
NOK Corp. |
37,100 | 303,519 | ||||||
Nokian Renkaat OYJ |
2,552 | 28,779 | ||||||
Pirelli & C SpA(b) |
9,548 | 36,030 | ||||||
Schaeffler AG (Preference) |
55,350 | 284,740 | ||||||
Shoei Co. Ltd. |
2,200 | 81,259 | ||||||
Stanley Electric Co. Ltd.(a) |
3,800 | 64,631 | ||||||
Sumitomo Electric Industries Ltd.(a) |
16,400 | 171,464 | ||||||
Sumitomo Rubber Industries Ltd. |
4,900 | 42,066 | ||||||
TI Fluid Systems plc(b) |
132,389 | 211,567 | ||||||
Tokai Rika Co. Ltd. |
18,800 | 196,304 | ||||||
Toyo Tire Corp.(a) |
41,400 | 485,486 | ||||||
Toyoda Gosei Co. Ltd. |
2,000 | 31,971 | ||||||
Toyota Boshoku Corp.(a) |
2,700 | 34,405 | ||||||
TS Tech Co. Ltd.(a) |
33,400 | 349,426 | ||||||
Valeo |
4,746 | 78,288 | ||||||
Vitesco Technologies Group AG* |
6,355 | 340,428 | ||||||
Yokohama Rubber Co. Ltd. (The) |
3,600 | 56,385 | ||||||
7,024,421 | ||||||||
Automobiles – 2.1% | ||||||||
Aston Martin Lagonda Global Holdings plc* (a) (b) |
578 | 703 | ||||||
Bayerische Motoren Werke AG |
6,847 | 538,130 | ||||||
Bayerische Motoren Werke AG (Preference) |
1,012 | 74,716 |
Investments | Shares | Value | ||||||
Automobiles – (continued) | ||||||||
Ferrari NV |
1,886 | $ | 371,874 | |||||
Honda Motor Co. Ltd. |
36,900 | 837,378 | ||||||
Isuzu Motors Ltd. |
12,300 | 144,321 | ||||||
Mazda Motor Corp. |
8,900 | 60,058 | ||||||
Mercedes-Benz Group AG |
15,744 | 911,850 | ||||||
Mitsubishi Motors Corp.* |
13,500 | 45,413 | ||||||
Nissan Motor Co. Ltd.(a) |
53,700 | 171,395 | ||||||
Piaggio & C SpA |
35,322 | 90,767 | ||||||
PIERER Mobility AG(a) |
440 | 25,501 | ||||||
Porsche Automobil Holding SE (Preference) |
3,034 | 169,724 | ||||||
Renault SA* |
3,265 | 100,584 | ||||||
Stellantis NV |
48,568 | 655,331 | ||||||
Subaru Corp. |
12,700 | 197,846 | ||||||
Suzuki Motor Corp. |
11,500 | 388,401 | ||||||
Toyota Motor Corp. |
262,400 | 3,635,838 | ||||||
Trigano SA |
2,378 | 243,491 | ||||||
Volkswagen AG (Preference) |
4,018 | 513,634 | ||||||
Volvo Car AB, Class B* |
10,332 | 43,841 | ||||||
Yamaha Motor Co. Ltd.(a) |
8,200 | 169,368 | ||||||
9,390,164 | ||||||||
Banks – 10.4% | ||||||||
77 Bank Ltd. (The) |
24,600 | 298,077 | ||||||
ABN AMRO Bank NV, CVA(b) |
9,052 | 89,072 | ||||||
AIB Group plc |
18,788 | 54,408 | ||||||
Aktia Bank OYJ(a) |
13,612 | 135,341 | ||||||
Alandsbanken Abp, Class B(a) |
1,512 | 47,820 | ||||||
Alior Bank SA* |
29,643 | 182,654 | ||||||
AMCO - Asset Management Co. SpA* (a) |
239 | 925 | ||||||
Aozora Bank Ltd. |
2,900 | 49,889 | ||||||
Australia & New Zealand Banking Group Ltd.(a) |
60,395 | 987,117 | ||||||
Awa Bank Ltd. (The)(a) |
16,400 | 206,221 | ||||||
Banca Popolare di Sondrio SpA |
139,031 | 498,803 | ||||||
Banco Bilbao Vizcaya Argentaria SA(a) |
144,115 | 741,949 | ||||||
Banco BPM SpA |
32,208 | 97,440 | ||||||
Banco Comercial Portugues SA, Class R |
189,546 | 27,052 | ||||||
Banco de Sabadell SA |
125,993 | 99,072 | ||||||
Banco Santander SA(a) |
365,802 | 947,959 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 189 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Bank Hapoalim BM |
23,493 | $ | 227,621 | |||||
Bank Leumi Le-Israel BM |
31,037 | 297,627 | ||||||
Bank Millennium SA* |
25,740 | 23,521 | ||||||
Bank of Ireland Group plc |
17,794 | 128,313 | ||||||
Bank of Kyoto Ltd. (The) |
1,600 | 57,698 | ||||||
Bank of Montreal(a) |
13,858 | 1,274,910 | ||||||
Bank of Nova Scotia (The) |
24,805 | 1,197,470 | ||||||
Bank of Queensland Ltd.(a) |
13,492 | 63,498 | ||||||
Bank Polska Kasa Opieki SA |
4,004 | 65,825 | ||||||
Bankinter SA(a) |
9,240 | 55,853 | ||||||
Banque Cantonale de Geneve |
697 | 125,366 | ||||||
Banque Cantonale Vaudoise (Registered) |
701 | 62,412 | ||||||
Barclays plc |
335,913 | 571,467 | ||||||
BAWAG Group AG* (b) |
2,105 | 101,777 | ||||||
Bendigo & Adelaide Bank Ltd.(a) |
9,421 | 54,279 | ||||||
Berner Kantonalbank AG (Registered) |
126 | 27,762 | ||||||
BNP Paribas SA |
24,559 | 1,152,841 | ||||||
BPER Banca |
40,348 | 74,671 | ||||||
CaixaBank SA |
96,227 | 318,890 | ||||||
Canadian Imperial Bank of Commerce |
18,327 | 831,268 | ||||||
Canadian Western Bank(a) |
28,249 | 490,819 | ||||||
Chiba Bank Ltd. (The) |
17,400 | 95,174 | ||||||
Chugin Financial Group, Inc. |
61,500 | 370,734 | ||||||
Close Brothers Group plc |
47,232 | 534,017 | ||||||
Commerzbank AG* |
20,787 | 166,331 | ||||||
Commonwealth Bank of Australia |
24,641 | 1,649,410 | ||||||
Concordia Financial Group Ltd. |
32,321 | 98,506 | ||||||
Credit Agricole SA |
28,126 | 255,355 | ||||||
Credito Emiliano SpA |
28,085 | 166,547 | ||||||
Dah Sing Banking Group Ltd.(a) |
149,440 | 89,095 | ||||||
Dah Sing Financial Holdings Ltd. |
65,600 | 129,865 | ||||||
Daishi Hokuetsu Financial Group, Inc. |
16,400 | 289,636 | ||||||
Danske Bank A/S |
13,079 | 211,138 | ||||||
DBS Group Holdings Ltd. |
37,856 | 914,900 | ||||||
DNB Bank ASA |
17,056 | 301,851 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Erste Group Bank AG |
7,380 | $ | 182,059 | |||||
FIBI Holdings Ltd. |
1,100 | 52,101 | ||||||
FinecoBank Banca Fineco SpA |
11,029 | 148,683 | ||||||
First International Bank of Israel Ltd. (The) |
1,144 | 49,635 | ||||||
Fukuoka Financial Group, Inc. |
2,800 | 47,547 | ||||||
Graubuendner Kantonalbank |
7 | 11,786 | ||||||
Gunma Bank Ltd. (The) |
139,400 | 379,837 | ||||||
Hachijuni Bank Ltd. (The) |
159,000 | 507,054 | ||||||
Hang Seng Bank Ltd. |
12,300 | 173,143 | ||||||
Heartland Group Holdings Ltd. |
50,556 | 50,224 | ||||||
Hirogin Holdings, Inc. |
95,300 | 393,036 | ||||||
Hokuhoku Financial Group, Inc. |
40,900 | 245,727 | ||||||
HSBC Holdings plc |
424,145 | 2,184,342 | ||||||
Hyakugo Bank Ltd. (The) |
90,200 | 199,656 | ||||||
ING Bank Slaski SA |
748 | 26,086 | ||||||
ING Groep NV |
82,738 | 813,979 | ||||||
Intesa Sanpaolo SpA |
361,702 | 689,595 | ||||||
Israel Discount Bank Ltd., Class A |
29,866 | 170,736 | ||||||
Iyogin Holdings, Inc. |
102,500 | 480,657 | ||||||
Jyske Bank A/S (Registered)* |
1,292 | 69,775 | ||||||
KBC Ancora |
352 | 12,517 | ||||||
KBC Group NV |
6,519 | 326,663 | ||||||
Kiyo Bank Ltd. (The) |
22,700 | 218,852 | ||||||
Kyushu Financial Group, Inc.(a) |
134,400 | 339,990 | ||||||
Laurentian Bank of Canada(a) |
14,801 | 329,864 | ||||||
Liechtensteinische Landesbank AG |
3,526 | 192,728 | ||||||
Lloyds Banking Group plc |
1,509,538 | 730,310 | ||||||
Luzerner Kantonalbank AG (Registered) |
16 | 6,603 | ||||||
Mebuki Financial Group, Inc. |
28,010 | 54,462 | ||||||
Mediobanca Banca di Credito Finanziario SpA |
13,776 | 124,881 | ||||||
Mitsubishi UFJ Financial Group, Inc. |
262,400 | 1,234,896 | ||||||
Mizrahi Tefahot Bank Ltd. |
3,047 | 115,750 | ||||||
Mizuho Financial Group, Inc. |
53,329 | 576,219 | ||||||
National Australia Bank Ltd. |
45,674 | 946,866 | ||||||
National Bank of Canada |
6,970 | 473,984 | ||||||
NatWest Group plc |
96,664 | 261,319 |
See Accompanying Notes to the Financial Statements.
190 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Nishi-Nippon Financial Holdings, Inc. |
53,300 | $ | 271,816 | |||||
Nordea Bank Abp |
66,502 | 635,023 | ||||||
North Pacific Bank Ltd.(a) |
94,300 | 149,728 | ||||||
Ogaki Kyoritsu Bank Ltd. (The) |
13,500 | 159,401 | ||||||
Oversea-Chinese Banking Corp. Ltd. |
86,170 | 738,635 | ||||||
Pareto Bank ASA |
16,280 | 73,674 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA |
16,716 | 91,334 | ||||||
Raiffeisen Bank International AG |
4,224 | 58,739 | ||||||
Resona Holdings, Inc. |
56,300 | 212,003 | ||||||
Ringkjoebing Landbobank A/S |
704 | 76,638 | ||||||
Royal Bank of Canada(a) |
29,438 | 2,720,325 | ||||||
San-In Godo Bank Ltd. (The)(a) |
53,300 | 253,886 | ||||||
Santander Bank Polska SA |
836 | 44,539 | ||||||
Shiga Bank Ltd. (The) |
17,400 | 294,653 | ||||||
Shinsei Bank Ltd. |
2,600 | 38,658 | ||||||
Shizuoka Financial Group, Inc. |
17,200 | 108,545 | ||||||
Skandinaviska Enskilda Banken AB, Class A |
39,811 | 419,710 | ||||||
Skandinaviska Enskilda Banken AB, Class C |
684 | 7,799 | ||||||
Societe Generale SA |
16,359 | 375,512 | ||||||
Spar Nord Bank A/S |
28,823 | 348,973 | ||||||
SpareBank 1 Nord Norge |
33,907 | 281,448 | ||||||
Sparebank 1 Oestlandet |
1,329 | 14,368 | ||||||
SpareBank 1 SMN |
3,103 | 33,487 | ||||||
SpareBank 1 SR-Bank ASA |
4,796 | 48,805 | ||||||
Sparebanken Vest |
31,529 | 279,905 | ||||||
St Galler Kantonalbank AG (Registered) |
110 | 51,826 | ||||||
Standard Chartered plc |
54,694 | 327,580 | ||||||
Sumitomo Mitsui Financial Group, Inc. |
27,900 | 783,306 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. |
8,200 | 235,957 | ||||||
Suruga Bank Ltd. |
70,500 | 186,881 | ||||||
Svenska Handelsbanken AB, Class A |
28,700 | 266,600 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Svenska Handelsbanken AB, Class B |
908 | $ | 9,926 | |||||
Swedbank AB, Class A |
17,220 | 256,575 | ||||||
Sydbank A/S |
20,213 | 616,113 | ||||||
TBC Bank Group plc |
14,596 | 316,608 | ||||||
Toronto-Dominion Bank (The) |
38,177 | 2,440,272 | ||||||
Unicaja Banco SA |
549,933 | 487,000 | ||||||
UniCredit SpA |
46,371 | 575,085 | ||||||
United Overseas Bank Ltd. |
30,926 | 606,675 | ||||||
Valiant Holding AG (Registered) |
5,289 | 518,462 | ||||||
Virgin Money UK plc |
41,844 | 65,569 | ||||||
Walliser Kantonalbank (Registered) |
485 | 52,098 | ||||||
Westpac Banking Corp. |
51,783 | 798,346 | ||||||
Yamaguchi Financial Group, Inc. |
77,900 | 409,848 | ||||||
Zuger Kantonalbank AG |
10 | 73,745 | ||||||
46,577,884 | ||||||||
Beverages – 1.1% | ||||||||
Anheuser-Busch InBev SA/NV |
13,817 | 690,995 | ||||||
Asahi Group Holdings Ltd.(a) |
6,900 | 193,303 | ||||||
Britvic plc |
3,520 | 29,484 | ||||||
Budweiser Brewing Co. APAC Ltd.(b) |
14,400 | 30,305 | ||||||
C&C Group plc* (a) |
23,522 | 44,279 | ||||||
Carlsberg A/S, Class B |
1,599 | 188,503 | ||||||
Coca-Cola Bottlers Japan Holdings, Inc. |
3,354 | 30,328 | ||||||
Coca-Cola Europacific Partners plc(a) |
3,250 | 152,912 | ||||||
Coca-Cola HBC AG |
4,000 | 87,618 | ||||||
Davide Campari-Milano NV |
10,094 | 90,725 | ||||||
Diageo plc |
33,620 | 1,392,728 | ||||||
Fevertree Drinks plc |
2,199 | 24,192 | ||||||
Heineken Holding NV |
1,461 | 99,779 | ||||||
Heineken NV |
3,403 | 284,540 | ||||||
Ito En Ltd. |
800 | 28,257 | ||||||
Kirin Holdings Co. Ltd. |
16,438 | 242,143 | ||||||
Olvi OYJ, Class A |
1,452 | 44,846 | ||||||
Pernod Ricard SA |
2,829 | 496,857 | ||||||
Primo Water Corp. |
8,815 | 128,343 | ||||||
Remy Cointreau SA |
398 | 61,011 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 191 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Beverages – (continued) | ||||||||
Royal Unibrew A/S |
836 | $ | 47,757 | |||||
Sapporo Holdings Ltd.(a) |
6,000 | 132,405 | ||||||
Suntory Beverage & Food Ltd. |
1,800 | 60,309 | ||||||
Takara Holdings, Inc. |
12,300 | 85,732 | ||||||
Treasury Wine Estates Ltd. |
8,668 | 71,779 | ||||||
4,739,130 | ||||||||
Biotechnology – 0.6% | ||||||||
Abcam plc* |
4,545 | 70,330 | ||||||
Argenx SE* |
861 | 335,963 | ||||||
Bavarian Nordic A/S* (a) |
3,823 | 121,807 | ||||||
BioGaia AB, Class B |
5,670 | 44,896 | ||||||
Biotest AG (Preference) |
924 | 31,963 | ||||||
Clinuvel Pharmaceuticals Ltd.(a) |
1,368 | 17,110 | ||||||
CSL Ltd. |
6,929 | 1,242,737 | ||||||
Galapagos NV* |
924 | 42,182 | ||||||
Genmab A/S* |
943 | 363,552 | ||||||
Genus plc |
2,520 | 74,102 | ||||||
Grifols SA* (a) |
3,564 | 30,314 | ||||||
Grifols SA (Preference), Class B* |
5,680 | 35,423 | ||||||
Idorsia Ltd.* (a) |
3,564 | 55,201 | ||||||
Imugene Ltd.* (a) |
171,556 | 19,198 | ||||||
Mesoblast Ltd.* |
44,748 | 26,468 | ||||||
Pacific Edge Ltd.* (a) |
60,412 | 15,091 | ||||||
PeptiDream, Inc.* (a) |
2,500 | 27,467 | ||||||
Pharma Mar SA |
414 | 24,804 | ||||||
Takara Bio, Inc. |
400 | 4,691 | ||||||
Telix Pharmaceuticals Ltd.* (a) |
14,168 | 62,784 | ||||||
Valneva SE* |
4,620 | 31,260 | ||||||
Vitrolife AB(a) |
880 | 14,223 | ||||||
2,691,566 | ||||||||
Building Products – 1.0% | ||||||||
AGC, Inc.(a) |
5,000 | 156,928 | ||||||
Arbonia AG(a) |
2,156 | 26,283 | ||||||
Assa Abloy AB, Class B |
14,842 | 299,514 | ||||||
Belimo Holding AG (Registered) |
132 | 53,816 | ||||||
Bunka Shutter Co. Ltd.(a) |
22,200 | 159,665 | ||||||
Carel Industries SpA(b) |
840 | 18,306 | ||||||
Central Glass Co. Ltd.(a) |
12,500 | 295,186 |
Investments | Shares | Value | ||||||
Building Products – (continued) | ||||||||
Cie de Saint-Gobain |
11,152 | $ | 456,314 | |||||
Daikin Industries Ltd. |
4,200 | 632,536 | ||||||
dormakaba Holding AG |
126 | 40,038 | ||||||
Fletcher Building Ltd. |
17,649 | 52,701 | ||||||
Geberit AG (Registered) |
533 | 237,167 | ||||||
Genuit Group plc |
15,664 | 46,079 | ||||||
Inrom Construction Industries Ltd.(a) |
8,932 | 36,621 | ||||||
Inwido AB |
4,884 | 43,844 | ||||||
James Halstead plc |
9,372 | 20,502 | ||||||
Kingspan Group plc |
2,461 | 124,292 | ||||||
Lindab International AB |
2,244 | 23,861 | ||||||
Lixil Corp. |
6,000 | 90,867 | ||||||
Munters Group AB(b) |
10,384 | 80,954 | ||||||
Nibe Industrier AB, Class B(a) |
23,739 | 189,260 | ||||||
Nichias Corp. |
21,300 | 329,026 | ||||||
Nichiha Corp.(a) |
12,300 | 233,198 | ||||||
Nitto Boseki Co. Ltd. |
1,900 | 28,238 | ||||||
Noritz Corp.(a) |
16,400 | 168,596 | ||||||
Reliance Worldwide Corp. Ltd.(a) |
13,860 | 28,449 | ||||||
ROCKWOOL A/S, Class A |
88 | 17,360 | ||||||
ROCKWOOL A/S, Class B |
174 | 34,650 | ||||||
Sanwa Holdings Corp. |
5,400 | 46,576 | ||||||
Schweiter Technologies AG |
56 | 37,548 | ||||||
Sekisui Jushi Corp. |
13,500 | 154,768 | ||||||
Steico SE |
396 | 17,417 | ||||||
Takara Standard Co. Ltd. |
2,176 | 18,695 | ||||||
Takasago Thermal Engineering Co. Ltd.(a) |
20,500 | 249,638 | ||||||
TOTO Ltd. |
3,000 | 85,781 | ||||||
Uponor OYJ |
2,112 | 28,055 | ||||||
Volution Group plc |
7,524 | 26,768 | ||||||
4,589,497 | ||||||||
Capital Markets – 2.9% | ||||||||
3i Group plc |
20,992 | 280,483 | ||||||
abrdn plc |
43,554 | 79,732 | ||||||
AJ Bell plc |
11,352 | 42,452 | ||||||
Allfunds Group plc |
4,048 | 25,545 | ||||||
Alpha FX Group plc |
1,804 | 39,464 | ||||||
Amundi SA(b) |
880 | 41,557 | ||||||
Anima Holding SpA(b) |
68,429 | 212,093 |
See Accompanying Notes to the Financial Statements.
192 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Ashmore Group plc |
22,554 | $ | 53,597 | |||||
ASX Ltd. |
2,624 | 113,595 | ||||||
Avanza Bank Holding AB(a) |
2,704 | 53,955 | ||||||
Azimut Holding SpA |
3,740 | 60,252 | ||||||
Banca Generali SpA |
1,397 | 41,781 | ||||||
Brederode SA* |
80 | 7,630 | ||||||
Brookfield Asset Management, Inc., Class A |
20,828 | 823,755 | ||||||
Bure Equity AB |
968 | 18,693 | ||||||
Canaccord Genuity Group, Inc.(a) |
33,087 | 169,310 | ||||||
CI Financial Corp. |
5,304 | 53,038 | ||||||
CMC Markets plc(a) (b) |
45,059 | 127,362 | ||||||
Credit Suisse Group AG (Registered)(a) |
51,619 | 213,027 | ||||||
Daiwa Securities Group, Inc. |
36,900 | 143,990 | ||||||
Deutsche Bank AG (Registered) |
42,558 | 406,321 | ||||||
Deutsche Boerse AG |
2,788 | 453,696 | ||||||
EFG International AG* |
28,864 | 236,507 | ||||||
EQT AB(a) |
4,756 | 93,653 | ||||||
Euronext NV(b) |
1,394 | 88,590 | ||||||
Fairfax India Holdings Corp.* (a) (b) |
6,468 | 60,541 | ||||||
flatexDEGIRO AG* |
4,400 | 38,521 | ||||||
Flow Traders(b) |
798 | 19,213 | ||||||
Generation Capital Ltd.* (a) |
314,839 | 104,216 | ||||||
Gimv NV |
6,055 | 258,828 | ||||||
GMO Financial Holdings, Inc.(a) |
8,400 | 32,270 | ||||||
Haitong International Securities Group Ltd.* (a) |
923,999 | 67,094 | ||||||
Hargreaves Lansdown plc |
5,061 | 44,472 | ||||||
Hong Kong Exchanges & Clearing Ltd. |
17,258 | 459,489 | ||||||
HUB24 Ltd.(a) |
4,532 | 73,435 | ||||||
IG Group Holdings plc |
8,448 | 77,375 | ||||||
IGM Financial, Inc. |
2,200 | 58,820 | ||||||
Impax Asset Management Group plc |
4,224 | 32,584 | ||||||
Insignia Financial Ltd.(a) |
198,809 | 400,455 | ||||||
IntegraFin Holdings plc(b) |
5,764 | 16,724 | ||||||
Intermediate Capital Group plc |
5,280 | 64,560 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Investec plc |
16,636 | $ | 83,990 | |||||
IP Group plc |
310,370 | 210,833 | ||||||
JAFCO Group Co. Ltd. |
21,400 | 328,699 | ||||||
Japan Exchange Group, Inc. |
8,200 | 107,772 | ||||||
JTC plc(b) |
5,016 | 40,368 | ||||||
Julius Baer Group Ltd. |
4,674 | 224,044 | ||||||
Jupiter Fund Management plc |
190,527 | 227,699 | ||||||
Leonteq AG(a) |
616 | 24,868 | ||||||
Liontrust Asset Management plc |
2,508 | 24,660 | ||||||
London Stock Exchange Group plc |
4,715 | 410,729 | ||||||
Macquarie Group Ltd. |
5,576 | 604,365 | ||||||
Magellan Financial Group Ltd.(a) |
2,640 | 16,763 | ||||||
Man Group plc |
32,340 | 80,688 | ||||||
Matsui Securities Co. Ltd. |
8,400 | 44,759 | ||||||
Molten Ventures plc* |
50,676 | 186,707 | ||||||
Ninety One plc |
28,555 | 66,937 | ||||||
Nomura Holdings, Inc. |
53,000 | 171,799 | ||||||
Nordnet AB publ |
2,420 | 30,002 | ||||||
Okasan Securities Group, Inc.(a) |
52,900 | 125,991 | ||||||
Onex Corp. |
880 | 44,237 | ||||||
Partners Group Holding AG |
369 | 331,630 | ||||||
Pendal Group Ltd.(a) |
106,313 | 333,791 | ||||||
Perpetual Ltd.(a) |
3,971 | 63,228 | ||||||
Pinnacle Investment Management Group Ltd.(a) |
6,468 | 33,667 | ||||||
Platinum Asset Management Ltd.(a) |
37,488 | 42,909 | ||||||
Quilter plc(b) |
22,680 | 25,240 | ||||||
Rathbones Group plc |
2,142 | 46,216 | ||||||
Ratos AB, Class B(a) |
8,448 | 31,627 | ||||||
Rothschild & Co. |
1,452 | 51,520 | ||||||
SBI Holdings, Inc. |
4,800 | 86,806 | ||||||
Schroders plc |
12,127 | 54,691 | ||||||
Singapore Exchange Ltd. |
16,400 | 97,582 | ||||||
Sprott, Inc. |
1,056 | 37,803 | ||||||
St James’s Place plc |
8,118 | 99,542 | ||||||
Swissquote Group Holding SA (Registered)(a) |
660 | 78,217 | ||||||
Tamburi Investment Partners SpA |
10,560 | 74,311 | ||||||
Tikehau Capital SCA(a) |
1,672 | 40,652 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 193 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
TMX Group Ltd. |
836 | $ | 80,275 | |||||
Tokai Tokyo Financial Holdings, Inc.(a) |
65,600 | 150,500 | ||||||
TP ICAP Group plc |
255,061 | 540,343 | ||||||
UBS Group AG (Registered) |
76,588 | 1,216,071 | ||||||
UOB-Kay Hian Holdings Ltd. |
118,900 | 111,750 | ||||||
Van Lanschot Kempen NV, CVA |
10,824 | 233,749 | ||||||
Vontobel Holding AG (Registered) |
339 | 19,105 | ||||||
VZ Holding AG |
285 | 19,650 | ||||||
WealthNavi, Inc.* (a) |
2,400 | 22,460 | ||||||
XTB SA(b) |
17,952 | 102,640 | ||||||
12,770,560 | ||||||||
Chemicals – 3.4% | ||||||||
ADEKA Corp.(a) |
2,300 | 34,445 | ||||||
Aica Kogyo Co. Ltd.(a) |
1,500 | 32,294 | ||||||
Air Liquide SA |
7,503 | 981,083 | ||||||
Air Water, Inc. |
6,000 | 67,131 | ||||||
Akzo Nobel NV |
2,255 | 139,162 | ||||||
Arkema SA |
1,599 | 126,619 | ||||||
Asahi Kasei Corp. |
32,800 | 210,634 | ||||||
BASF SE |
19,926 | 894,791 | ||||||
Borregaard ASA |
1,692 | 22,751 | ||||||
Calix Ltd.* (a) |
9,988 | 25,994 | ||||||
Chr Hansen Holding A/S |
1,584 | 87,984 | ||||||
Ciech SA* |
9,548 | 67,117 | ||||||
Clariant AG (Registered)* |
2,836 | 45,654 | ||||||
Corbion NV |
2,352 | 62,671 | ||||||
Covestro AG(b) |
3,731 | 126,999 | ||||||
Croda International plc |
2,378 | 185,083 | ||||||
Daicel Corp. |
8,900 | 50,777 | ||||||
Denka Co. Ltd. |
1,400 | 32,449 | ||||||
DIC Corp.(a) |
27,499 | 462,156 | ||||||
Elementis plc* |
41,976 | 44,704 | ||||||
Elkem ASA(b) |
7 | 23 | ||||||
EMS-Chemie Holding AG (Registered) |
126 | 79,258 | ||||||
Essentra plc |
16,940 | 43,884 | ||||||
Evonik Industries AG |
4,160 | 76,701 | ||||||
FUCHS PETROLUB SE |
55 | 1,326 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
FUCHS PETROLUB SE (Preference) |
1,182 | $ | 33,879 | |||||
Fuso Chemical Co. Ltd. |
1,100 | 24,903 | ||||||
Givaudan SA (Registered) |
123 | 367,494 | ||||||
Grupa Azoty SA* |
12,177 | 83,709 | ||||||
Hexpol AB |
5,784 | 57,053 | ||||||
ICL Group Ltd. |
9,848 | 89,316 | ||||||
Incitec Pivot Ltd. |
36,784 | 88,206 | ||||||
Israel Corp. Ltd. |
104 | 45,241 | ||||||
JCU Corp. |
1,400 | 26,590 | ||||||
Johnson Matthey plc |
4,920 | 109,582 | ||||||
JSR Corp. |
3,100 | 59,107 | ||||||
K+S AG (Registered) |
4,961 | 109,636 | ||||||
Kaneka Corp. |
21,800 | 541,205 | ||||||
Kansai Paint Co. Ltd. |
5,300 | 69,176 | ||||||
Kemira OYJ |
2,992 | 39,507 | ||||||
KH Neochem Co. Ltd.(a) |
10,500 | 179,362 | ||||||
Koninklijke DSM NV |
2,756 | 324,960 | ||||||
Kumiai Chemical Industry Co. Ltd.(a) |
8,000 | 52,639 | ||||||
Kuraray Co. Ltd. |
6,700 | 46,114 | ||||||
Kureha Corp.(a) |
6,200 | 398,775 | ||||||
LANXESS AG |
2,156 | 72,983 | ||||||
Lenzing AG(a) |
132 | 6,314 | ||||||
Lintec Corp. |
14,100 | 211,735 | ||||||
Methanex Corp.(a) |
1,290 | 44,969 | ||||||
Mitsubishi Chemical Group Corp. |
33,500 | 151,481 | ||||||
Mitsubishi Gas Chemical Co., Inc. |
6,200 | 78,921 | ||||||
Mitsui Chemicals, Inc. |
5,500 | 101,944 | ||||||
Nihon Parkerizing Co. Ltd. |
38,800 | 252,689 | ||||||
Nippon Kayaku Co. Ltd. |
7,900 | 62,824 | ||||||
Nippon Paint Holdings Co. Ltd. |
12,300 | 78,615 | ||||||
Nippon Sanso Holdings Corp. |
2,800 | 44,684 | ||||||
Nippon Shokubai Co. Ltd. |
10,700 | 384,418 | ||||||
Nippon Soda Co. Ltd. |
9,939 | 296,562 | ||||||
Nissan Chemical Corp. |
2,900 | 130,723 | ||||||
Nitto Denko Corp. |
1,800 | 94,823 | ||||||
NOF Corp. |
1,200 | 41,336 | ||||||
Novozymes A/S, Class B |
3,567 | 187,382 | ||||||
Nufarm Ltd.(a) |
14,448 | 51,460 | ||||||
Nutrien Ltd. |
11,603 | 979,159 |
See Accompanying Notes to the Financial Statements.
194 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
OCI NV |
1,318 | $ | 50,438 | |||||
Okamoto Industries, Inc.(a) |
5,900 | 147,267 | ||||||
Orica Ltd. |
4,722 | 41,910 | ||||||
Osaka Soda Co. Ltd.(a) |
8,800 | 214,028 | ||||||
Recticel SA |
2,200 | 30,398 | ||||||
Robertet SA |
44 | 36,660 | ||||||
Sanyo Chemical Industries Ltd. |
3,800 | 107,761 | ||||||
Shikoku Chemicals Corp.(a) |
15,500 | 135,150 | ||||||
Shin-Etsu Chemical Co. Ltd. |
5,700 | 595,943 | ||||||
Shin-Etsu Polymer Co. Ltd.(a) |
13,100 | 109,288 | ||||||
Showa Denko KK |
4,200 | 61,374 | ||||||
Sika AG (Registered) |
2,255 | 508,797 | ||||||
SOL SpA |
3,009 | 54,126 | ||||||
Solvay SA |
1,476 | 133,101 | ||||||
Sumitomo Bakelite Co. Ltd. |
12,300 | 333,495 | ||||||
Sumitomo Chemical Co. Ltd. |
35,800 | 120,670 | ||||||
Symrise AG |
2,132 | 217,775 | ||||||
Synthomer plc(a) |
110,864 | 143,599 | ||||||
T Hasegawa Co. Ltd. |
900 | 19,195 | ||||||
Taiyo Holdings Co. Ltd. |
1,800 | 31,777 | ||||||
Teijin Ltd. |
3,000 | 27,248 | ||||||
Tessenderlo Group SA* |
4,141 | 125,443 | ||||||
Toagosei Co. Ltd.(a) |
38,000 | 292,219 | ||||||
Tokai Carbon Co. Ltd. |
6,600 | 43,116 | ||||||
Tokuyama Corp. |
24,600 | 287,153 | ||||||
Tokyo Ohka Kogyo Co. Ltd. |
700 | 30,235 | ||||||
Toray Industries, Inc. |
36,900 | 179,864 | ||||||
Tosoh Corp.(a) |
7,800 | 84,961 | ||||||
Toyo Gosei Co. Ltd. |
300 | 15,461 | ||||||
Toyo Ink SC Holdings Co. Ltd.(a) |
13,900 | 179,086 | ||||||
Toyobo Co. Ltd.(a) |
32,800 | 229,502 | ||||||
Treatt plc |
3,432 | 25,605 | ||||||
UBE Corp. |
32,600 | 420,454 | ||||||
Umicore SA |
3,034 | 100,005 | ||||||
Victrex plc |
3,192 | 60,750 | ||||||
Wacker Chemie AG |
256 | 29,831 | ||||||
Yara International ASA |
3,198 | 142,723 | ||||||
Zeon Corp. |
3,600 | 30,372 | ||||||
15,317,946 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – 1.2% | ||||||||
Befesa SA(b) |
2,184 | $ | 75,852 | |||||
Biffa plc(b) |
15,576 | 73,778 | ||||||
Big Technologies plc* |
11,924 | 37,548 | ||||||
Boyd Group Services, Inc. |
208 | 29,561 | ||||||
Brambles Ltd. |
23,903 | 178,526 | ||||||
Bravida Holding AB(b) |
4,312 | 40,387 | ||||||
Caverion OYJ |
8,888 | 39,486 | ||||||
Cleanaway Waste Management Ltd. |
35,024 | 60,469 | ||||||
Coor Service Management Holding AB(b) |
6,692 | 35,518 | ||||||
Dai Nippon Printing Co. Ltd. |
5,700 | 114,395 | ||||||
Daiseki Co. Ltd. |
1,499 | 46,391 | ||||||
Derichebourg SA |
31,816 | 139,051 | ||||||
Downer EDI Ltd.(a) |
9,548 | 27,414 | ||||||
Duskin Co. Ltd. |
3,700 | 70,995 | ||||||
Elis SA |
4,661 | 53,851 | ||||||
GFL Environmental, Inc. |
1,760 | 47,443 | ||||||
HomeServe plc |
3,784 | 51,671 | ||||||
Intrum AB(a) |
2,464 | 31,016 | ||||||
ISS A/S* |
2,508 | 46,048 | ||||||
Japan Elevator Service Holdings Co. Ltd. |
4,200 | 49,676 | ||||||
Kokuyo Co. Ltd.(a) |
32,800 | 407,366 | ||||||
Loomis AB |
2,271 | 63,421 | ||||||
Marlowe plc* |
4,092 | 37,691 | ||||||
Mitie Group plc |
469,983 | 386,356 | ||||||
Mitsubishi Pencil Co. Ltd.(a) |
18,200 | 177,427 | ||||||
Nippon Kanzai Co. Ltd. |
1,300 | 22,128 | ||||||
Okamura Corp. |
30,500 | 280,920 | ||||||
Park24 Co. Ltd.* |
2,200 | 29,381 | ||||||
Pilot Corp. |
1,700 | 66,223 | ||||||
Prestige International, Inc. |
4,000 | 19,376 | ||||||
Prosegur Cash SA(a) (b) |
159,861 | 96,063 | ||||||
Prosegur Cia de Seguridad SA |
77,203 | 143,985 | ||||||
Raksul, Inc.* (a) |
1,600 | 31,626 | ||||||
Rentokil Initial plc |
30,012 | 188,114 | ||||||
Restore plc |
7,172 | 29,727 | ||||||
Ritchie Bros Auctioneers, Inc. |
2,091 | 136,431 | ||||||
Sdiptech AB, Class B* |
1,056 | 20,355 | ||||||
Secom Co. Ltd. |
2,700 | 154,242 | ||||||
Securitas AB, Class B |
7,047 | 57,611 | ||||||
Serco Group plc |
405,736 | 763,313 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 195 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Commercial Services & Supplies – (continued) | ||||||||
SG Fleet Group Ltd.(a) |
59,146 | $ | 76,020 | |||||
Smart Metering Systems plc |
5,165 | 43,530 | ||||||
Societe BIC SA |
756 | 43,412 | ||||||
Sohgo Security Services Co. Ltd. |
1,900 | 47,425 | ||||||
SPIE SA |
2,992 | 70,025 | ||||||
TOMRA Systems ASA(a) |
3,872 | 62,574 | ||||||
TOPPAN, Inc. |
8,200 | 122,419 | ||||||
TRE Holdings Corp. |
4,200 | 45,381 | ||||||
Waste Connections, Inc. |
3,936 | 518,846 | ||||||
5,390,464 | ||||||||
Communications Equipment – 0.3% | ||||||||
AudioCodes Ltd.(a) |
1,936 | 39,650 | ||||||
Gilat Satellite Networks Ltd.* (a) |
7,568 | 45,522 | ||||||
Nokia OYJ |
84,009 | 374,217 | ||||||
Spirent Communications plc |
40,672 | 121,752 | ||||||
Telefonaktiebolaget LM Ericsson, Class A(a) |
3,789 | 22,493 | ||||||
Telefonaktiebolaget LM Ericsson, Class B |
70,233 | 390,238 | ||||||
VTech Holdings Ltd. |
49,200 | 261,674 | ||||||
1,255,546 | ||||||||
Construction & Engineering – 2.1% | ||||||||
Ackermans & van Haaren NV |
454 | 63,313 | ||||||
ACS Actividades de Construccion y Servicios SA(a) |
3,133 | 80,354 | ||||||
AF Gruppen ASA |
704 | 10,198 | ||||||
Arcadis NV |
1,848 | 62,794 | ||||||
Ashtrom Group Ltd. |
1,861 | 40,697 | ||||||
Badger Infrastructure Solutions Ltd.(a) |
2,812 | 59,330 | ||||||
Balfour Beatty plc |
212,339 | 730,007 | ||||||
Bouygues SA |
3,895 | 111,177 | ||||||
Chudenko Corp. |
12,300 | 169,809 | ||||||
Cie d’Entreprises CFE* |
352 | 3,736 | ||||||
COMSYS Holdings Corp. |
4,200 | 68,947 | ||||||
Daiho Corp.(a) |
4,100 | 116,406 | ||||||
Eiffage SA |
1,640 | 148,377 |
Investments | Shares | Value | ||||||
Construction & Engineering – (continued) | ||||||||
Elco Ltd. |
231 | $ | 13,389 | |||||
Elecnor SA |
11,972 | 119,509 | ||||||
Electra Ltd. |
15 | 8,769 | ||||||
EXEO Group, Inc. |
3,900 | 57,174 | ||||||
Fasadgruppen Group AB |
2,508 | 19,972 | ||||||
Ferrovial SA |
6,928 | 169,197 | ||||||
Fomento de Construcciones y Contratas SA |
3,980 | 33,121 | ||||||
Fugro NV* |
7,040 | 91,497 | ||||||
Gold Finance Holdings Ltd.* ‡ |
89,827 | — | ||||||
Hazama Ando Corp.(a) |
55,700 | 323,404 | ||||||
HOCHTIEF AG |
442 | 23,503 | ||||||
Instalco AB(b) |
7,260 | 29,049 | ||||||
JGC Holdings Corp. |
5,400 | 65,104 | ||||||
Johns Lyng Group Ltd.(a) |
7,568 | 31,456 | ||||||
Kajima Corp. |
12,400 | 116,880 | ||||||
Kandenko Co. Ltd. |
35,800 | 201,358 | ||||||
Keller Group plc |
23,903 | 172,830 | ||||||
Kinden Corp. |
2,300 | 23,428 | ||||||
Kumagai Gumi Co. Ltd. |
13,100 | 221,572 | ||||||
Kyudenko Corp. |
18,500 | 393,312 | ||||||
Maire Tecnimont SpA(a) |
69,044 | 214,409 | ||||||
MIRAIT ONE Corp.(a) |
31,000 | 298,039 | ||||||
Monadelphous Group Ltd.(a) |
7,216 | 63,123 | ||||||
Morgan Sindall Group plc |
13,694 | 242,805 | ||||||
NCC AB, Class B |
25,502 | 212,431 | ||||||
Nippon Densetsu Kogyo Co. Ltd. |
18,100 | 202,755 | ||||||
Nippon Road Co. Ltd. (The) |
700 | 28,869 | ||||||
Nishimatsu Construction Co. Ltd.(a) |
10,200 | 248,421 | ||||||
NRW Holdings Ltd.(a) |
169,986 | 277,179 | ||||||
Obayashi Corp. |
16,500 | 106,015 | ||||||
Okumura Corp.(a) |
10,600 | 200,540 | ||||||
Peab AB, Class B |
3,999 | 20,736 | ||||||
Penta-Ocean Construction Co. Ltd. |
87,600 | 436,129 | ||||||
Raito Kogyo Co. Ltd. |
15,500 | 211,589 | ||||||
Sacyr SA(a) |
36,710 | 90,053 | ||||||
Sanki Engineering Co. Ltd.(a) |
18,000 | 194,974 | ||||||
Shapir Engineering and Industry Ltd. |
2,525 | 20,892 | ||||||
Shikun & Binui Ltd.* (a) |
3,556 | 14,175 |
See Accompanying Notes to the Financial Statements.
196 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Shimizu Corp. |
17,800 | $ | 88,979 | |||||
SHO-BOND Holdings Co. Ltd. |
1,200 | 51,993 | ||||||
Skanska AB, Class B |
6,478 | 100,713 | ||||||
SNC-Lavalin Group, Inc.(a) |
2,068 | 35,764 | ||||||
Stantec, Inc. |
1,848 | 90,310 | ||||||
Sumitomo Densetsu Co. Ltd. |
6,400 | 112,641 | ||||||
Sweco AB, Class B |
4,708 | 35,362 | ||||||
Taikisha Ltd. |
12,700 | 299,909 | ||||||
Taisei Corp. |
4,600 | 125,495 | ||||||
Takamatsu Construction Group Co. Ltd. |
4,300 | 56,124 | ||||||
Toda Corp. |
5,200 | 25,994 | ||||||
Totetsu Kogyo Co. Ltd.(a) |
10,000 | 166,112 | ||||||
Veidekke ASA |
3,088 | 25,692 | ||||||
Vestum AB* (a) |
21,560 | 30,116 | ||||||
Vinci SA |
7,831 | 721,192 | ||||||
Webuild SpA(a) |
139,810 | 190,276 | ||||||
WSP Global, Inc. |
1,435 | 176,149 | ||||||
Yokogawa Bridge Holdings Corp. |
14,800 | 196,756 | ||||||
9,392,380 | ||||||||
Construction Materials – 0.6% | ||||||||
Adbri Ltd.(a) |
22,176 | 22,334 | ||||||
Boral Ltd.(a) |
3,476 | 6,401 | ||||||
Breedon Group plc |
81,796 | 49,254 | ||||||
Brickworks Ltd.(a) |
3,147 | 44,533 | ||||||
Buzzi Unicem SpA |
3,148 | 52,255 | ||||||
Cementir Holding NV |
18,081 | 105,256 | ||||||
CRH plc |
15,211 | 548,070 | ||||||
CSR Ltd.(a) |
15,532 | 45,985 | ||||||
HeidelbergCement AG |
3,075 | 141,778 | ||||||
Holcim AG* |
11,070 | 503,086 | ||||||
Ibstock plc(b) |
27,720 | 49,629 | ||||||
Imerys SA |
1,103 | 45,198 | ||||||
James Hardie Industries plc, CHDI(a) |
6,190 | 134,579 | ||||||
Maeda Kosen Co. Ltd. |
1,200 | 24,422 | ||||||
Marshalls plc |
13,860 | 40,277 | ||||||
Mitani Sekisan Co. Ltd.(a) |
1,200 | 30,921 | ||||||
RHI Magnesita NV(a) |
10,537 | 224,680 |
Investments | Shares | Value | ||||||
Construction Materials – (continued) | ||||||||
Sumitomo Osaka Cement Co. Ltd.(a) |
1,700 | $ | 36,199 | |||||
Taiheiyo Cement Corp. |
2,200 | 29,914 | ||||||
Titan Cement International SA* |
12,505 | 139,166 | ||||||
Vicat SA(a) |
6,109 | 140,078 | ||||||
Wienerberger AG |
2,596 | 59,372 | ||||||
2,473,387 | ||||||||
Consumer Finance – 0.4% | ||||||||
AEON Financial Service Co. Ltd. |
400 | 3,918 | ||||||
Aiful Corp.(a) |
102,500 | 279,292 | ||||||
Cembra Money Bank AG |
1,176 | 85,314 | ||||||
Credit Corp. Group Ltd.(a) |
3,350 | 39,801 | ||||||
Credit Saison Co. Ltd. |
6,200 | 66,324 | ||||||
Direct Finance of Direct Group 2006 Ltd.(a) |
369 | 85,448 | ||||||
goeasy Ltd. |
528 | 42,784 | ||||||
Gruppo MutuiOnline SpA |
1,056 | 23,379 | ||||||
Isracard Ltd. |
56,580 | 168,156 | ||||||
Jaccs Co. Ltd. |
8,000 | 194,301 | ||||||
KRUK SA |
5,043 | 294,250 | ||||||
Latitude Group Holdings Ltd.(a) |
88,452 | 71,832 | ||||||
Marui Group Co. Ltd. |
3,200 | 52,833 | ||||||
Orient Corp.(a) |
16,400 | 132,957 | ||||||
Provident Financial plc |
70,643 | 132,820 | ||||||
Resurs Holding AB(b) |
37,356 | 81,132 | ||||||
1,754,541 | ||||||||
Containers & Packaging – 0.5% | ||||||||
Billerud AB |
3,558 | 45,914 | ||||||
Cascades, Inc.(a) |
25,871 | 167,662 | ||||||
CCL Industries, Inc., Class B |
2,759 | 129,450 | ||||||
DS Smith plc |
26,376 | 88,128 | ||||||
FP Corp. |
1,200 | 28,621 | ||||||
Fuji Seal International, Inc.(a) |
14,300 | 167,692 | ||||||
Huhtamaki OYJ |
2,051 | 73,685 | ||||||
Infinya Ltd.(a) |
798 | 77,340 | ||||||
Mayr Melnhof Karton AG(a) |
275 | 39,139 | ||||||
Orora Ltd. |
19,096 | 36,999 | ||||||
Pact Group Holdings Ltd.(a) |
74,172 | 68,061 | ||||||
Rengo Co. Ltd.(a) |
79,000 | 438,490 | ||||||
SIG Group AG* |
6,150 | 118,237 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 197 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Containers & Packaging – (continued) | ||||||||
Smurfit Kappa Group plc |
4,018 | $ | 133,154 | |||||
Toyo Seikan Group Holdings Ltd. |
5,600 | 64,087 | ||||||
Transcontinental, Inc., Class A(a) |
21,197 | 241,643 | ||||||
Verallia SA(b) |
1,364 | 38,664 | ||||||
Vidrala SA(a) |
924 | 70,593 | ||||||
Winpak Ltd. |
1,716 | 52,233 | ||||||
2,079,792 | ||||||||
Distributors – 0.1% | ||||||||
Bapcor Ltd.(a) |
6,776 | 28,684 | ||||||
D’ieteren Group |
220 | 36,595 | ||||||
Inchcape plc |
8,938 | 76,563 | ||||||
Inter Cars SA |
484 | 36,518 | ||||||
PALTAC Corp. |
800 | 22,767 | ||||||
Uni-Select, Inc.* |
1,554 | 42,095 | ||||||
243,222 | ||||||||
Diversified Consumer Services – 0.1% | ||||||||
AcadeMedia AB(b) |
26,691 | 114,151 | ||||||
Benesse Holdings, Inc.(a) |
6,200 | 91,518 | ||||||
G8 Education Ltd.(a) |
51,492 | 31,774 | ||||||
IDP Education Ltd.(a) |
2,501 | 47,322 | ||||||
InvoCare Ltd.(a) |
4,432 | 28,964 | ||||||
LITALICO, Inc. |
1,200 | 25,431 | ||||||
Park Lawn Corp. |
1,496 | 23,196 | ||||||
Perfect Medical Health Management Ltd.(a) |
88,000 | 31,165 | ||||||
393,521 | ||||||||
Diversified Financial Services – 1.0% | ||||||||
AMP Ltd.* |
65,142 | 52,485 | ||||||
Banca IFIS SpA |
8,487 | 100,238 | ||||||
Banca Mediolanum SpA |
4,444 | 33,293 | ||||||
BFF Bank SpA(b) |
10,956 | 77,315 | ||||||
Burford Capital Ltd. |
12,915 | 104,831 | ||||||
Challenger Ltd.(a) |
9,812 | 44,045 | ||||||
Creades AB, Class A(a) |
20,582 | 138,108 | ||||||
ECN Capital Corp. |
16,720 | 50,379 | ||||||
eGuarantee, Inc.(a) |
2,800 | 45,324 | ||||||
Element Fleet Management Corp.(a) |
9,751 | 129,746 |
Investments | Shares | Value | ||||||
Diversified Financial Services – (continued) | ||||||||
Eurazeo SE |
1,144 | $ | 65,353 | |||||
Fuyo General Lease Co. Ltd. |
7,100 | 394,564 | ||||||
GRENKE AG |
1,804 | 36,801 | ||||||
Groupe Bruxelles Lambert NV |
1,312 | 96,735 | ||||||
HAL Trust |
1,215 | 140,019 | ||||||
Hypoport SE* |
88 | 8,611 | ||||||
Illimity Bank SpA* (a) |
3,080 | 20,944 | ||||||
Industrivarden AB, Class A |
3,388 | 76,710 | ||||||
Industrivarden AB, Class C |
3,828 | 85,945 | ||||||
Investment AB Oresund |
9,198 | 95,389 | ||||||
Investor AB, Class A(a) |
7,798 | 132,596 | ||||||
Investor AB, Class B |
27,506 | 448,939 | ||||||
Japan Securities Finance Co. Ltd. |
8,800 | 52,752 | ||||||
Kinnevik AB, Class B* |
4,578 | 56,549 | ||||||
L E Lundbergforetagen AB, Class B |
1,348 | 53,210 | ||||||
M&G plc |
67,732 | 136,627 | ||||||
Mitsubishi HC Capital, Inc. |
23,929 | 102,713 | ||||||
Mizuho Leasing Co. Ltd. |
12,438 | 271,128 | ||||||
ORIX Corp. |
26,100 | 383,681 | ||||||
PEUGEOT INVEST |
308 | 25,388 | ||||||
Plus500 Ltd. |
36,162 | 751,514 | ||||||
Ricoh Leasing Co. Ltd. |
5,400 | 131,880 | ||||||
Sofina SA |
316 | 61,683 | ||||||
SRH NV* ‡ |
2,857 | — | ||||||
Svolder AB, Class B(a) |
31,980 | 165,855 | ||||||
Tokyo Century Corp. |
600 | 20,466 | ||||||
Wendel SE |
497 | 38,953 | ||||||
Zenkoku Hosho Co. Ltd.(a) |
600 | 19,820 | ||||||
4,650,589 | ||||||||
Diversified Telecommunication Services – 1.2% | ||||||||
Aussie Broadband Ltd.* (a) |
13,244 | 19,817 | ||||||
BCE, Inc.(a) |
4,223 | 190,245 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd. |
52,780 | 93,848 | ||||||
BT Group plc |
121,483 | 181,550 | ||||||
Cellnex Telecom SA(b) |
8,323 | 272,282 | ||||||
Chorus Ltd. |
13,585 | 65,584 | ||||||
Deutsche Telekom AG (Registered) |
72,119 | 1,365,987 | ||||||
Elisa OYJ |
2,378 | 114,953 |
See Accompanying Notes to the Financial Statements.
198 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
Gamma Communications plc |
3,432 | $ | 42,043 | |||||
Helios Towers plc* |
10,824 | 15,640 | ||||||
HKBN Ltd. |
51,500 | 34,771 | ||||||
HKT Trust & HKT Ltd. |
53,400 | 60,340 | ||||||
Infrastrutture Wireless Italiane SpA(b) |
5,179 | 45,720 | ||||||
Internet Initiative Japan, Inc. |
2,000 | 31,460 | ||||||
Koninklijke KPN NV |
53,546 | 149,823 | ||||||
NetLink NBN Trust(b) |
61,600 | 37,219 | ||||||
Nippon Telegraph & Telephone Corp. |
25,600 | 705,126 | ||||||
NOS SGPS SA |
20,496 | 80,300 | ||||||
Orange SA |
41,984 | 399,637 | ||||||
PCCW Ltd. |
36,035 | 13,772 | ||||||
Proximus SADP |
2,464 | 25,838 | ||||||
RAI Way SpA(b) |
8,120 | 38,907 | ||||||
Singapore Telecommunications Ltd. |
123,000 | 217,299 | ||||||
Spark New Zealand Ltd. |
20,724 | 61,643 | ||||||
Swisscom AG (Registered) |
369 | 182,260 | ||||||
Telecom Italia SpA* (a) |
112,508 | 22,028 | ||||||
Telecom Italia SpA* |
96,272 | 18,412 | ||||||
Telefonica Deutschland Holding AG |
24,508 | 53,435 | ||||||
Telefonica SA |
114,440 | 394,177 | ||||||
Telekom Austria AG* |
1,426 | 8,287 | ||||||
Telenor ASA |
12,054 | 109,562 | ||||||
Telia Co. AB(a) |
30,873 | 81,719 | ||||||
Telstra Group Ltd. |
63,919 | 160,222 | ||||||
TELUS Corp. |
6,318 | 131,775 | ||||||
TELUS Corp.* |
2,497 | 52,080 | ||||||
United Internet AG (Registered) |
1,848 | 34,566 | ||||||
5,512,327 | ||||||||
Electric Utilities – 1.3% | ||||||||
Acciona SA(a) |
516 | 92,869 | ||||||
BKW AG |
440 | 51,353 | ||||||
Chubu Electric Power Co., Inc.(a) |
16,400 | 133,619 | ||||||
Chugoku Electric Power Co., Inc. (The) |
4,206 | 19,752 | ||||||
CK Infrastructure Holdings Ltd. |
11,000 | 52,268 |
Investments | Shares | Value | ||||||
Electric Utilities – (continued) | ||||||||
CLP Holdings Ltd. |
25,500 | $ | 171,194 | |||||
Contact Energy Ltd. |
11,528 | 50,564 | ||||||
EDP – Energias de Portugal SA |
39,811 | 174,111 | ||||||
Electricite de France SA |
12,294 | 145,202 | ||||||
Elia Group SA/NV(a) |
476 | 60,171 | ||||||
Emera, Inc.(a) |
3,649 | 135,067 | ||||||
Endesa SA(a) |
5,986 | 99,896 | ||||||
Enea SA* |
60,803 | 66,457 | ||||||
Enel SpA |
156,415 | 698,605 | ||||||
EVN AG |
748 | 12,450 | ||||||
Fortis, Inc. |
6,642 | 258,804 | ||||||
Fortum OYJ |
9,225 | 129,879 | ||||||
Genesis Energy Ltd.(a) |
15,388 | 25,299 | ||||||
HK Electric Investments & HK Electric Investments Ltd.(b) |
44,500 | 28,288 | ||||||
Hokkaido Electric Power Co., Inc.(a) |
72,200 | 220,046 | ||||||
Hokuriku Electric Power Co.(a) |
66,100 | 221,467 | ||||||
Hydro One Ltd.(b) |
4,633 | 116,025 | ||||||
Iberdrola SA |
82,620 | 839,031 | ||||||
Infratil Ltd. |
8,272 | 42,001 | ||||||
Kansai Electric Power Co., Inc. (The) |
20,500 | 155,438 | ||||||
Kyushu Electric Power Co., Inc. |
13,200 | 65,452 | ||||||
Manawa Energy Ltd.(a) |
5,123 | 15,685 | ||||||
Mercury NZ Ltd. |
17,980 | 60,793 | ||||||
Okinawa Electric Power Co., Inc. (The)(a) |
17,170 | 119,330 | ||||||
Origin Energy Ltd. |
26,363 | 93,898 | ||||||
Orsted A/S(b) |
2,870 | 236,762 | ||||||
PGE Polska Grupa Energetyczna SA* |
10,843 | 12,385 | ||||||
Power Assets Holdings Ltd. |
22,500 | 107,629 | ||||||
Red Electrica Corp. SA |
4,830 | 78,050 | ||||||
Romande Energie Holding SA (Registered) |
21 | 23,502 | ||||||
Shikoku Electric Power Co., Inc. |
61,500 | 296,256 | ||||||
SSE plc |
14,329 | 256,704 | ||||||
Terna – Rete Elettrica Nazionale |
21,416 | 141,985 | ||||||
Tohoku Electric Power Co., Inc. |
10,900 | 45,834 | ||||||
Tokyo Electric Power Co. Holdings, Inc.* |
22,400 | 73,092 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 199 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
Verbund AG |
924 | $ | 72,374 | |||||
5,699,587 | ||||||||
Electrical Equipment – 1.5% | ||||||||
ABB Ltd. (Registered) |
25,133 | 699,178 | ||||||
Alfen Beheer BV* (b) |
945 | 100,451 | ||||||
Ballard Power Systems, Inc.* (a) |
18,450 | 104,420 | ||||||
Ceres Power Holdings plc* (a) |
12,012 | 45,335 | ||||||
Daihen Corp.(a) |
8,200 | 212,124 | ||||||
DiscoverIE Group plc |
4,796 | 41,138 | ||||||
Fagerhult AB |
6,336 | 25,228 | ||||||
Fuji Electric Co. Ltd. |
1,500 | 58,129 | ||||||
Fujikura Ltd. |
86,100 | 509,759 | ||||||
Furukawa Electric Co. Ltd.(a) |
24,600 | 380,002 | ||||||
GARO AB(a) (b) |
1,980 | 19,961 | ||||||
GS Yuasa Corp. |
27,300 | 416,383 | ||||||
Huber + Suhner AG (Registered) |
867 | 77,278 | ||||||
Idec Corp. |
2,200 | 47,216 | ||||||
ITM Power plc* (a) |
10,192 | 9,700 | ||||||
Legrand SA |
4,264 | 325,093 | ||||||
Mabuchi Motor Co. Ltd. |
1,600 | 43,489 | ||||||
Mitsubishi Electric Corp. |
47,000 | 414,236 | ||||||
NEL ASA* (a) |
12,688 | 15,505 | ||||||
Nexans SA |
748 | 69,936 | ||||||
Nidec Corp. |
8,310 | 460,577 | ||||||
Nissin Electric Co. Ltd.(a) |
17,600 | 163,644 | ||||||
NKT A/S* |
2,706 | 135,218 | ||||||
Nordex SE* |
7,130 | 66,650 | ||||||
PowerCell Sweden AB* (a) |
2,948 | 32,413 | ||||||
Prysmian SpA |
3,936 | 128,336 | ||||||
Sanyo Denki Co. Ltd.(a) |
4,100 | 150,335 | ||||||
Schneider Electric SE |
8,159 | 1,034,282 | ||||||
Siemens Energy AG |
6,384 | 74,548 | ||||||
Siemens Gamesa Renewable Energy SA* |
4,136 | 73,417 | ||||||
Signify NV(b) |
2,730 | 75,711 | ||||||
Somfy SA |
275 | 29,300 | ||||||
TKH Group NV, CVA |
2,194 | 77,760 | ||||||
Ushio, Inc. |
4,200 | 43,686 | ||||||
Varta AG |
352 | 9,452 |
Investments | Shares | Value | ||||||
Electrical Equipment – (continued) | ||||||||
Vestas Wind Systems A/S |
15,621 | $ | 307,752 | |||||
6,477,642 | ||||||||
Electronic Equipment, Instruments & Components – 1.7% | ||||||||
Ai Holdings Corp.(a) |
3,800 | 56,347 | ||||||
Alps Alpine Co. Ltd. |
5,348 | 46,055 | ||||||
ALSO Holding AG (Registered)* |
52 | 8,179 | ||||||
Amano Corp. |
4,900 | 83,966 | ||||||
Anritsu Corp. |
4,700 | 47,400 | ||||||
AT&S Austria Technologie & Systemtechnik AG(a) |
880 | 27,180 | ||||||
Azbil Corp.(a) |
2,100 | 57,150 | ||||||
Barco NV |
3,034 | 65,551 | ||||||
Basler AG |
792 | 21,526 | ||||||
Canon Marketing Japan, Inc. |
1,500 | 31,688 | ||||||
Celestica, Inc.* |
36,695 | 402,178 | ||||||
Citizen Watch Co. Ltd.(a) |
22,400 | 94,190 | ||||||
Codan Ltd.(a) |
7,304 | 18,075 | ||||||
Comet Holding AG (Registered) |
462 | 73,772 | ||||||
Daiwabo Holdings Co. Ltd. |
32,800 | 424,358 | ||||||
Dexerials Corp. |
3,500 | 81,828 | ||||||
FIH Mobile Ltd.* (a) |
328,000 | 26,742 | ||||||
FIT Hon Teng Ltd.* (a) (b) |
474,000 | 55,553 | ||||||
Halma plc |
6,519 | 158,745 | ||||||
Hamamatsu Photonics KK |
2,700 | 122,434 | ||||||
Hexagon AB, Class B |
27,593 | 272,673 | ||||||
Hioki EE Corp. |
700 | 33,438 | ||||||
Hirose Electric Co. Ltd. |
582 | 75,611 | ||||||
Horiba Ltd. |
800 | 32,940 | ||||||
Hosiden Corp. |
20,500 | 216,537 | ||||||
Ibiden Co. Ltd.(a) |
2,800 | 94,756 | ||||||
Inficon Holding AG (Registered)(a) |
126 | 100,221 | ||||||
Iriso Electronics Co. Ltd. |
1,200 | 34,877 | ||||||
Japan Aviation Electronics Industry Ltd.(a) |
20,544 | 320,527 | ||||||
Jenoptik AG |
2,585 | 56,770 | ||||||
Kaga Electronics Co. Ltd. |
8,300 | 246,540 | ||||||
Keyence Corp. |
3,000 | 1,136,744 | ||||||
Kyocera Corp. |
5,700 | 285,355 | ||||||
Lagercrantz Group AB, Class B |
2,640 | 22,636 |
See Accompanying Notes to the Financial Statements.
200 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components
– (continued) |
||||||||
Landis+Gyr Group AG* (a) |
1,102 | $ | 63,538 | |||||
LEM Holding SA (Registered) |
27 | 45,002 | ||||||
Macnica Holdings, Inc. |
16,500 | 330,588 | ||||||
Maruwa Co. Ltd. |
600 | 70,683 | ||||||
Meiko Electronics Co. Ltd.(a) |
8,200 | 145,811 | ||||||
Murata Manufacturing Co. Ltd. |
9,000 | 442,022 | ||||||
Mycronic AB |
924 | 14,516 | ||||||
NCAB Group AB |
5,280 | 23,023 | ||||||
Nichicon Corp. |
3,200 | 30,163 | ||||||
Nippon Electric Glass Co. Ltd. |
2,200 | 38,158 | ||||||
Nissha Co. Ltd.(a) |
16,400 | 193,421 | ||||||
Nohmi Bosai Ltd. |
10,700 | 115,613 | ||||||
Novonix Ltd.* (a) |
6,864 | 11,763 | ||||||
Oki Electric Industry Co. Ltd. |
32,800 | 162,637 | ||||||
Omron Corp. |
2,500 | 116,998 | ||||||
Oxford Instruments plc |
3,036 | 66,904 | ||||||
Renishaw plc |
880 | 35,482 | ||||||
Riken Keiki Co. Ltd. |
1,200 | 33,101 | ||||||
Sensirion Holding AG* (b) |
528 | 48,118 | ||||||
Sesa SpA |
294 | 31,876 | ||||||
Shimadzu Corp. |
4,900 | 129,394 | ||||||
Softwareone Holding AG* |
3,256 | 36,668 | ||||||
Spectris plc |
2,112 | 73,436 | ||||||
Taiyo Yuden Co. Ltd. |
2,500 | 68,204 | ||||||
TDK Corp. |
8,200 | 256,810 | ||||||
Topcon Corp. |
6,400 | 70,228 | ||||||
Vaisala OYJ, Class A |
836 | 32,513 | ||||||
Venture Corp. Ltd. |
4,500 | 50,657 | ||||||
VSTECS Holdings Ltd. |
250,000 | 120,066 | ||||||
Yokogawa Electric Corp. |
4,900 | 82,120 | ||||||
7,772,055 | ||||||||
Energy Equipment & Services – 0.4% | ||||||||
Aker Solutions ASA(a) (b) |
7,560 | 28,940 | ||||||
Borr Drilling Ltd.* (a) |
8,106 | 39,529 | ||||||
BW Offshore Ltd.(a) |
41,194 | 104,918 | ||||||
Drilling Co. of 1972 A/S (The)* |
843 | 41,632 | ||||||
John Wood Group plc* |
234,356 | 377,486 | ||||||
Lapidoth Capital Ltd.(a) |
2,352 | 44,708 | ||||||
Pason Systems, Inc. |
2,898 | 30,742 |
Investments | Shares | Value | ||||||
Energy Equipment & Services – (continued) | ||||||||
Petrofac Ltd.* (a) |
20,076 | $ | 24,894 | |||||
Precision Drilling Corp.* |
462 | 34,039 | ||||||
Saipem SpA* (a) |
65,310 | 63,516 | ||||||
SBM Offshore NV |
7,626 | 103,259 | ||||||
Secure Energy Services, Inc. |
16,104 | 84,413 | ||||||
Subsea 7 SA |
26 | 260 | ||||||
Technip Energies NV |
41,492 | 535,778 | ||||||
Tenaris SA |
7,474 | 116,012 | ||||||
TGS ASA |
3,948 | 53,922 | ||||||
Vallourec SA* |
8,806 | 93,781 | ||||||
Worley Ltd.(a) |
7,728 | 70,518 | ||||||
1,848,347 | ||||||||
Entertainment – 0.5% | ||||||||
Bollore SE |
12,858 | 64,367 | ||||||
Capcom Co. Ltd.(a) |
3,400 | 94,816 | ||||||
CD Projekt SA |
1,193 | 31,779 | ||||||
CTS Eventim AG & Co. KGaA* |
704 | 33,635 | ||||||
Daiichikosho Co. Ltd. |
1,100 | 31,601 | ||||||
DeNA Co. Ltd. |
1,100 | 14,365 | ||||||
Embracer Group AB* (a) |
6,644 | 31,968 | ||||||
EVT Ltd.* (a) |
2,282 | 21,801 | ||||||
Kahoot! ASA* |
34,776 | 74,155 | ||||||
Kinepolis Group NV* |
1,030 | 38,847 | ||||||
Koei Tecmo Holdings Co. Ltd. |
2,492 | 37,690 | ||||||
Konami Group Corp. |
1,000 | 43,933 | ||||||
MIXI, Inc.(a) |
4,200 | 65,896 | ||||||
Modern Times Group MTG AB, Class B* |
7,040 | 52,693 | ||||||
Nexon Co. Ltd. |
8,200 | 137,756 | ||||||
Nintendo Co. Ltd. |
16,600 | 677,916 | ||||||
Paradox Interactive AB |
952 | 16,420 | ||||||
Shochiku Co. Ltd.* (a) |
800 | 63,565 | ||||||
Square Enix Holdings Co. Ltd. |
1,800 | 80,412 | ||||||
Stillfront Group AB* |
132,225 | 257,380 | ||||||
Team17 Group plc* |
5,676 | 26,957 | ||||||
Toei Animation Co. Ltd. |
200 | 20,601 | ||||||
Toho Co. Ltd. |
1,200 | 42,789 | ||||||
Ubisoft Entertainment SA* |
1,425 | 39,111 | ||||||
Universal Music Group NV |
9,143 | 179,392 | ||||||
2,179,845 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 201 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.4% | ||||||||
Activia Properties, Inc.(a) |
15 | $ | 44,455 | |||||
Advance Logistics Investment Corp. |
44 | 43,042 | ||||||
Advance Residence Investment Corp. |
18 | 41,901 | ||||||
Aedifica SA |
704 | 53,716 | ||||||
AEON REIT Investment Corp. |
29 | 31,217 | ||||||
Allied Properties REIT |
1,540 | 29,794 | ||||||
Altarea SCA |
88 | 11,724 | ||||||
Arena REIT(a) |
14,580 | 36,640 | ||||||
ARGAN SA |
991 | 74,341 | ||||||
Argosy Property Ltd. |
68,432 | 47,110 | ||||||
Artis REIT(a) |
21,279 | 148,979 | ||||||
Assura plc |
57,957 | 37,335 | ||||||
Big Yellow Group plc |
4,224 | 54,761 | ||||||
Boardwalk REIT(a) |
7,421 | 263,751 | ||||||
British Land Co. plc (The) |
10,868 | 45,785 | ||||||
BWP Trust(a) |
12,444 | 32,466 | ||||||
Canadian Apartment Properties REIT(a) |
1,012 | 31,301 | ||||||
Capital & Counties Properties plc |
43,340 | 53,442 | ||||||
CapitaLand Ascendas REIT |
64,135 | 118,743 | ||||||
CapitaLand Ascott Trust |
30,164 | 20,357 | ||||||
CapitaLand China Trust |
73,814 | 50,597 | ||||||
CapitaLand Integrated Commercial Trust |
75,746 | 100,631 | ||||||
Carmila SA(a) |
21,812 | 305,260 | ||||||
CDL Hospitality Trusts |
38,294 | 31,391 | ||||||
Centuria Capital Group(a) |
23,730 | 25,568 | ||||||
Centuria Industrial REIT(a) |
20,824 | 40,347 | ||||||
Champion REIT |
108,000 | 32,332 | ||||||
Charter Hall Group(a) |
8,140 | 67,354 | ||||||
Charter Hall Long Wale REIT(a) |
7,926 | 22,047 | ||||||
Charter Hall Retail REIT(a) |
6,292 | 16,134 | ||||||
Charter Hall Social Infrastructure REIT(a) |
16,370 | 36,323 | ||||||
Choice Properties REIT |
3,957 | 37,973 | ||||||
Cofinimmo SA |
526 | 43,643 | ||||||
Comforia Residential REIT, Inc. |
19 | 40,330 | ||||||
Covivio |
660 | 35,355 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
CRE Logistics REIT, Inc.(a) |
44 | $ | 60,567 | |||||
Crombie REIT |
3,256 | 35,590 | ||||||
Cromwell European REIT(b) |
23,174 | 35,959 | ||||||
Cromwell Property Group(a) |
398,438 | 178,347 | ||||||
CT REIT(a) |
3,432 | 38,999 | ||||||
Daiwa House REIT Investment Corp. |
42 | 84,771 | ||||||
Daiwa Securities Living Investments Corp. |
26 | 20,186 | ||||||
Derwent London plc |
1,508 | 37,572 | ||||||
Dexus |
14,476 | 71,832 | ||||||
Dexus Industria REIT(a) |
18,568 | 31,464 | ||||||
Dream Office REIT(a) |
1,452 | 16,404 | ||||||
Eurocommercial Properties NV |
16,031 | 352,693 | ||||||
Far East Hospitality Trust |
53,976 | 21,932 | ||||||
First Capital REIT(a) |
1,819 | 21,136 | ||||||
Fortune REIT |
92,000 | 58,717 | ||||||
Frasers Centrepoint Trust |
33,249 | 48,871 | ||||||
Frasers Hospitality Trust |
39,200 | 12,327 | ||||||
Frasers Logistics & Commercial Trust(b) |
43,839 | 34,077 | ||||||
Frontier Real Estate Investment Corp.(a) |
12 | 42,386 | ||||||
Fukuoka REIT Corp. |
26 | 30,367 | ||||||
Gecina SA |
704 | 62,796 | ||||||
Global One Real Estate Investment Corp. |
48 | 37,073 | ||||||
GLP J-REIT |
74 | 76,721 | ||||||
Goodman Group |
25,707 | 279,452 | ||||||
Goodman Property Trust |
19,085 | 22,951 | ||||||
GPT Group (The) |
29,568 | 81,490 | ||||||
Granite REIT(a) |
484 | 24,703 | ||||||
Great Portland Estates plc |
14,238 | 84,260 | ||||||
Growthpoint Properties Australia Ltd. |
4,004 | 8,500 | ||||||
H&R REIT(a) |
5,632 | 46,285 | ||||||
Hamborner REIT AG |
6,058 | 43,229 | ||||||
Hammerson plc(a) |
171,380 | 37,737 | ||||||
Hankyu Hanshin REIT, Inc. |
26 | 26,991 | ||||||
Heiwa Real Estate REIT, Inc. |
43 | 44,581 | ||||||
Home Consortium Ltd.(a) |
9,954 | 30,552 | ||||||
Hoshino Resorts REIT, Inc.(a) |
16 | 75,998 | ||||||
Hulic Reit, Inc. |
65 | 76,136 |
See Accompanying Notes to the Financial Statements.
202 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
ICADE |
836 | $ | 31,117 | |||||
Ichigo Office REIT Investment Corp.(a) |
128 | 72,252 | ||||||
Industrial & Infrastructure Fund Investment Corp. |
44 | 46,476 | ||||||
Ingenia Communities Group(a) |
28,760 | 72,091 | ||||||
Inmobiliaria Colonial Socimi SA |
7,185 | 37,885 | ||||||
InterRent REIT(a) |
6,380 | 53,648 | ||||||
Invincible Investment Corp. |
121 | 38,017 | ||||||
Japan Excellent, Inc. |
42 | 38,854 | ||||||
Japan Hotel REIT Investment Corp. |
77 | 40,563 | ||||||
Japan Logistics Fund, Inc. |
19 | 40,714 | ||||||
Japan Metropolitan Fund Invest |
144 | 106,085 | ||||||
Japan Prime Realty Investment Corp. |
13 | 35,291 | ||||||
Japan Real Estate Investment Corp. |
24 | 100,595 | ||||||
Kenedix Office Investment Corp.(a) |
18 | 40,993 | ||||||
Kenedix Residential Next Investment Corp. |
42 | 61,544 | ||||||
Kenedix Retail REIT Corp. |
31 | 55,749 | ||||||
Keppel DC REIT |
21,100 | 26,243 | ||||||
Keppel Pacific Oak US REIT(b) |
241,900 | 130,626 | ||||||
Keppel REIT |
27,933 | 17,667 | ||||||
Killam Apartment REIT(a) |
16,072 | 186,047 | ||||||
Kiwi Property Group Ltd. |
57,540 | 30,252 | ||||||
Klepierre SA* |
3,960 | 79,647 | ||||||
Land Securities Group plc |
12,222 | 80,266 | ||||||
LaSalle Logiport REIT |
44 | 46,980 | ||||||
Lendlease Global Commercial REIT |
606,800 | 300,163 | ||||||
Link REIT |
31,923 | 188,695 | ||||||
LondonMetric Property plc |
19,734 | 42,465 | ||||||
LXI REIT plc(b) |
118,203 | 165,761 | ||||||
Manulife US REIT(b) |
114,400 | 41,756 | ||||||
Mapletree Industrial Trust |
35,086 | 54,547 | ||||||
Mapletree Logistics Trust |
45,115 | 48,459 | ||||||
Mapletree Pan Asia Commercial Trust |
59,162 | 66,474 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Menivim- The New REIT Ltd. |
159,941 | $ | 81,436 | |||||
Mercialys SA(a) |
30,586 | 264,963 | ||||||
Merlin Properties Socimi SA(a) |
2,992 | 25,343 | ||||||
Mirai Corp. |
88 | 28,359 | ||||||
Mirvac Group(a) |
63,924 | 84,614 | ||||||
Mitsubishi Estate Logistics REIT Investment Corp.(a) |
15 | 44,404 | ||||||
Mitsui Fudosan Logistics Park, Inc. |
9 | 29,852 | ||||||
Montea NV |
405 | 27,659 | ||||||
Mori Hills REIT Investment Corp. |
16 | 17,514 | ||||||
Mori Trust Sogo Reit, Inc. |
42 | 41,905 | ||||||
National Storage REIT(a) |
8,949 | 14,936 | ||||||
Nextensa SA |
1,012 | 50,211 | ||||||
Nippon Accommodations Fund, Inc. |
8 | 34,070 | ||||||
Nippon Building Fund, Inc. |
24 | 106,731 | ||||||
Nippon Prologis REIT, Inc. |
41 | 85,925 | ||||||
NIPPON REIT Investment Corp. |
11 | 27,160 | ||||||
Nomura Real Estate Master Fund, Inc. |
93 | 106,055 | ||||||
NorthWest Healthcare Properties REIT(a) |
4,268 | 33,605 | ||||||
NTT UD REIT Investment Corp.(a) |
65 | 63,673 | ||||||
One REIT, Inc. |
14 | 23,350 | ||||||
Orix JREIT, Inc. |
49 | 65,769 | ||||||
OUE Commercial REIT |
2,977 | 684 | ||||||
Parkway Life REIT |
12,500 | 35,333 | ||||||
Precinct Properties New Zealand Ltd.(a) |
22,735 | 16,312 | ||||||
Primary Health Properties plc |
29,080 | 37,198 | ||||||
Prime US REIT(b) |
172,200 | 80,934 | ||||||
Property for Industry Ltd. |
26,697 | 38,774 | ||||||
Reit 1 Ltd. |
54,038 | 284,815 | ||||||
RioCan REIT(a) |
2,596 | 36,940 | ||||||
Rural Funds Group |
20,724 | 33,793 | ||||||
Safestore Holdings plc |
4,488 | 46,686 | ||||||
Samty Residential Investment Corp. |
44 | 35,553 | ||||||
Sasseur REIT(b) |
149,600 | 75,059 | ||||||
Scentre Group(a) |
67,117 | 124,462 | ||||||
Segro plc |
17,794 | 160,824 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 203 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Sekisui House Reit, Inc.(a) |
55 | $ | 29,640 | |||||
Sella Capital Real Estate Ltd. |
73,127 | 188,911 | ||||||
Shaftesbury plc |
8,712 | 36,872 | ||||||
Shopping Centres Australasia Property Group(a) |
32,912 | 57,244 | ||||||
SOSiLA Logistics REIT, Inc.(a) |
207 | 198,456 | ||||||
Star Asia Investment Corp. |
66 | 25,177 | ||||||
Starhill Global REIT |
146,296 | 53,242 | ||||||
Stockland |
53,956 | 124,208 | ||||||
Stride Property Group |
32,208 | 29,938 | ||||||
Summit Industrial Income REIT(a) |
3,212 | 40,996 | ||||||
Sunlight REIT |
55,000 | 17,516 | ||||||
Suntec REIT |
43,500 | 39,654 | ||||||
Target Healthcare REIT plc |
40,084 | 40,013 | ||||||
Tokyu REIT, Inc. |
63 | 89,731 | ||||||
Tritax Big Box REIT plc |
33,836 | 54,657 | ||||||
UK Commercial Property REIT Ltd. |
63,932 | 44,901 | ||||||
Unibail-Rodamco-Westfield* (a) |
2,952 | 139,695 | ||||||
Unibail-Rodamco-Westfield, CHDI* |
5 | 12 | ||||||
UNITE Group plc (The) |
6,093 | 62,505 | ||||||
United Urban Investment Corp. |
40 | 42,305 | ||||||
Urban Logistics REIT plc |
16,506 | 24,991 | ||||||
Vicinity Ltd.(a) |
65,692 | 81,703 | ||||||
Vital Healthcare Property Trust |
28,750 | 39,083 | ||||||
Warehouse Reit plc(a) (b) |
20,284 | 28,025 | ||||||
Warehouses De Pauw CVA |
2,992 | 76,827 | ||||||
Waypoint REIT Ltd. |
43,262 | 75,522 | ||||||
Workspace Group plc |
8,954 | 42,206 | ||||||
Xior Student Housing NV(b) |
925 | 26,010 | ||||||
10,752,660 | ||||||||
Food & Staples Retailing – 1.7% | ||||||||
Aeon Co. Ltd. |
13,813 | 258,027 | ||||||
Ain Holdings, Inc. |
800 | 33,639 | ||||||
Alimentation Couche-Tard, Inc. |
12,423 | 555,554 | ||||||
Arcs Co. Ltd. |
19,218 | 256,524 | ||||||
Axfood AB |
1,496 | 37,013 | ||||||
Axial Retailing, Inc.(a) |
8,200 | 187,022 | ||||||
Belc Co. Ltd.(a) |
4,900 | 187,580 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
Carrefour SA |
12,546 | $ | 201,931 | |||||
Casino Guichard Perrachon SA* (a) |
20,500 | 197,344 | ||||||
Coles Group Ltd.(a) |
18,450 | 192,659 | ||||||
Cosmos Pharmaceutical Corp. |
200 | 19,376 | ||||||
Create SD Holdings Co. Ltd. |
500 | 10,664 | ||||||
DFI Retail Group Holdings Ltd. |
7,600 | 17,024 | ||||||
Dino Polska SA* (b) |
1,012 | 66,217 | ||||||
Empire Co. Ltd., Class A |
3,212 | 82,416 | ||||||
Endeavour Group Ltd.(a) |
23,616 | 107,974 | ||||||
Etablissements Franz Colruyt NV |
1,044 | 25,167 | ||||||
Fuji Co. Ltd.(a) |
4,200 | 52,050 | ||||||
George Weston Ltd. |
1,148 | 126,200 | ||||||
GrainCorp Ltd., Class A |
70,479 | 377,217 | ||||||
Heiwado Co. Ltd.(a) |
13,500 | 171,026 | ||||||
HelloFresh SE* |
1,980 | 39,647 | ||||||
Inageya Co. Ltd.(a) |
11,198 | 84,907 | ||||||
J Sainsbury plc |
32,120 | 71,892 | ||||||
Jeronimo Martins SGPS SA |
5,155 | 106,892 | ||||||
Kato Sangyo Co. Ltd. |
11,300 | 264,568 | ||||||
Kesko OYJ, Class A |
2,248 | 43,236 | ||||||
Kesko OYJ, Class B |
4,715 | 91,803 | ||||||
Kobe Bussan Co. Ltd.(a) |
1,900 | 41,353 | ||||||
Koninklijke Ahold Delhaize NV |
22,960 | 641,064 | ||||||
Kusuri no Aoki Holdings Co. Ltd.(a) |
600 | 28,984 | ||||||
Lawson, Inc. |
800 | 25,566 | ||||||
Life Corp. |
8,200 | 122,364 | ||||||
Loblaw Cos. Ltd. |
2,460 | 201,301 | ||||||
Marks & Spencer Group plc* |
48,796 | 59,271 | ||||||
MARR SpA |
1,155 | 12,169 | ||||||
MatsukiyoCocokara & Co. |
2,400 | 87,516 | ||||||
Maxvalu Tokai Co. Ltd. |
500 | 9,433 | ||||||
Metcash Ltd.(a) |
17,514 | 45,917 | ||||||
Metro, Inc. |
3,608 | 188,778 | ||||||
Mitsubishi Shokuhin Co. Ltd. |
5,500 | 111,380 | ||||||
North West Co., Inc. (The)(a) |
1,428 | 37,112 | ||||||
Ocado Group plc* (a) |
9,870 | 53,683 | ||||||
Oisix ra daichi, Inc.* (a) |
2,000 | 22,646 | ||||||
Seven & i Holdings Co. Ltd. |
12,600 | 470,821 | ||||||
Sheng Siong Group Ltd. |
17,900 | 19,733 | ||||||
Shop Apotheke Europe NV* (a) (b) |
748 | 31,013 |
See Accompanying Notes to the Financial Statements.
204 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
Shufersal Ltd. |
3,578 | $ | 24,531 | |||||
Sligro Food Group NV(a) |
2,552 | 37,027 | ||||||
Sonae SGPS SA |
333,658 | 321,032 | ||||||
Sugi Holdings Co. Ltd. |
800 | 32,132 | ||||||
Sundrug Co. Ltd. |
1,600 | 37,246 | ||||||
Tesco plc |
166,418 | 412,143 | ||||||
Tsuruha Holdings, Inc. |
900 | 52,377 | ||||||
United Super Markets Holdings, Inc. |
2,000 | 14,102 | ||||||
Valor Holdings Co. Ltd. |
14,200 | 164,322 | ||||||
Welcia Holdings Co. Ltd. |
2,300 | 48,125 | ||||||
Woolworths Group Ltd. |
17,958 | 379,177 | ||||||
Zur Rose Group AG* (a) |
260 | 7,030 | ||||||
7,604,917 | ||||||||
Food Products – 2.9% | ||||||||
a2 Milk Co. Ltd. (The)* (a) |
12,579 | 42,385 | ||||||
AAK AB |
2,860 | 41,669 | ||||||
Agrana Beteiligungs AG(a) |
5,885 | 79,685 | ||||||
Ajinomoto Co., Inc. |
8,200 | 225,971 | ||||||
Ariake Japan Co. Ltd. |
800 | 27,719 | ||||||
Aryzta AG* |
62,524 | 64,102 | ||||||
Associated British Foods plc |
7,339 | 114,030 | ||||||
Ausnutria Dairy Corp. Ltd.* |
98,000 | 46,192 | ||||||
Austevoll Seafood ASA |
3,432 | 25,385 | ||||||
Bakkafrost P/F |
1,281 | 64,008 | ||||||
Bakkavor Group plc(b) |
38,192 | 40,015 | ||||||
Barry Callebaut AG (Registered) |
38 | 71,918 | ||||||
Bega Cheese Ltd.(a) |
22,616 | 46,422 | ||||||
Bell Food Group AG (Registered) |
820 | 199,930 | ||||||
Bumitama Agri Ltd. |
213,200 | 89,643 | ||||||
Calbee, Inc. |
3,200 | 64,265 | ||||||
Chocoladefabriken Lindt & Spruengli AG |
24 | 230,227 | ||||||
Chocoladefabriken Lindt & Spruengli AG (Registered) |
3 | 291,681 | ||||||
Cloetta AB, Class B |
16,456 | 30,051 | ||||||
Costa Group Holdings Ltd.(a) |
16,050 | 26,068 | ||||||
Cranswick plc |
2,058 | 70,468 | ||||||
Danone SA |
8,569 | 426,338 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
DyDo Group Holdings, Inc. |
500 | $ | 15,272 | |||||
Ebro Foods SA |
1,618 | 25,235 | ||||||
Elders Ltd.(a) |
12,136 | 100,885 | ||||||
Emmi AG (Registered) |
41 | 32,734 | ||||||
First Pacific Co. Ltd. |
820,000 | 217,278 | ||||||
First Resources Ltd. |
5,100 | 5,370 | ||||||
Fuji Oil Holdings, Inc.(a) |
17,600 | 277,200 | ||||||
Glanbia plc(a) |
2,024 | 23,385 | ||||||
Golden Agri-Resources Ltd. |
213,400 | 43,733 | ||||||
Greencore Group plc* |
148,092 | 114,239 | ||||||
Grieg Seafood ASA |
3,299 | 22,846 | ||||||
Hilton Food Group plc |
3,916 | 27,503 | ||||||
House Foods Group, Inc. |
2,400 | 44,937 | ||||||
Inghams Group Ltd.(a) |
105,247 | 170,270 | ||||||
Itoham Yonekyu Holdings, Inc. |
55,400 | 247,862 | ||||||
Japfa Ltd. |
201,820 | 72,736 | ||||||
JDE Peet’s NV |
1,804 | 51,671 | ||||||
Kagome Co. Ltd. |
900 | 18,008 | ||||||
Kameda Seika Co. Ltd. |
900 | 27,823 | ||||||
Kernel Holding SA |
13,728 | 47,617 | ||||||
Kerry Group plc, Class A(a) |
2,419 | 210,392 | ||||||
Kewpie Corp. |
2,100 | 33,188 | ||||||
Kikkoman Corp. |
3,500 | 190,265 | ||||||
Kotobuki Spirits Co. Ltd. |
500 | 25,667 | ||||||
KWS Saat SE & Co. KGaA |
704 | 40,913 | ||||||
Leroy Seafood Group ASA |
5,456 | 25,084 | ||||||
Maple Leaf Foods, Inc. |
301 | 4,455 | ||||||
Maruha Nichiro Corp.(a) |
16,400 | 253,004 | ||||||
Megmilk Snow Brand Co. Ltd. |
18,400 | 200,545 | ||||||
Mehadrin Ltd.* |
— | (d) | 14 | |||||
MEIJI Holdings Co. Ltd. |
2,800 | 115,289 | ||||||
Morinaga & Co. Ltd. |
1,100 | 27,531 | ||||||
Morinaga Milk Industry Co. Ltd. |
1,200 | 34,070 | ||||||
Mowi ASA |
5,699 | 84,990 | ||||||
Nestle SA (Registered) |
40,262 | 4,386,878 | ||||||
Neto Malinda Trading Ltd.* |
1,596 | 53,918 | ||||||
NH Foods Ltd. |
3,200 | 76,321 | ||||||
Nichirei Corp. |
1,600 | 24,909 | ||||||
Nippn Corp. |
26,100 | 274,811 | ||||||
Nippon Suisan Kaisha Ltd. |
94,900 | 338,393 | ||||||
Nisshin Oillio Group Ltd. (The) |
9,300 | 199,596 | ||||||
Nisshin Seifun Group, Inc. |
2,690 | 29,102 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 205 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Nissin Foods Holdings Co. Ltd. |
1,500 | $ | 97,184 | |||||
Norway Royal Salmon ASA* |
132 | 1,676 | ||||||
Orkla ASA |
12,859 | 86,775 | ||||||
Premier Foods plc |
206,353 | 246,138 | ||||||
Premium Brands Holdings Corp.(a) |
660 | 38,887 | ||||||
Prima Meat Packers Ltd. |
8,200 | 108,517 | ||||||
Riken Vitamin Co. Ltd. |
10,000 | 126,821 | ||||||
S Foods, Inc. |
7,200 | 132,001 | ||||||
Sakata Seed Corp.(a) |
2,800 | 92,307 | ||||||
Salmar ASA |
748 | 25,339 | ||||||
Saputo, Inc. |
4,349 | 105,724 | ||||||
Savencia SA |
1,676 | 92,928 | ||||||
Schouw & Co. A/S(a) |
420 | 26,652 | ||||||
Societe LDC SA |
1,617 | 149,268 | ||||||
Strauss Group Ltd. |
952 | 23,933 | ||||||
Suedzucker AG |
1,979 | 25,232 | ||||||
Synlait Milk Ltd.* (a) |
1,760 | 3,190 | ||||||
Tate & Lyle plc |
9,428 | 76,093 | ||||||
Toyo Suisan Kaisha Ltd. |
1,800 | 67,575 | ||||||
UIE plc(a) |
4,510 | 110,766 | ||||||
United Malt Grp Ltd.(a) |
25,168 | 50,051 | ||||||
Vilmorin & Cie SA |
1,612 | 71,456 | ||||||
Viscofan SA |
1,554 | 92,538 | ||||||
Vitasoy International Holdings Ltd.* (a) |
72,000 | 122,907 | ||||||
WH Group Ltd.(b) |
150,500 | 76,114 | ||||||
Wilmar International Ltd. |
69,700 | 191,107 | ||||||
Yakult Honsha Co. Ltd. |
2,500 | 138,595 | ||||||
Yamazaki Baking Co. Ltd.(a) |
2,900 | 29,559 | ||||||
12,943,444 | ||||||||
Gas Utilities – 0.5% | ||||||||
AltaGas Ltd.(a) |
6,337 | 114,145 | ||||||
APA Group(a) |
15,936 | 107,100 | ||||||
Brookfield Infrastructure Corp., Class A(a) |
1,055 | 45,462 | ||||||
Enagas SA(a) |
2,268 | 36,818 | ||||||
Hong Kong & China Gas Co. Ltd. |
149,907 | 115,727 | ||||||
Italgas SpA |
6,908 | 35,605 | ||||||
Keppel Infrastructure Trust |
55,647 | 20,842 |
Investments | Shares | Value | ||||||
Gas Utilities – (continued) | ||||||||
Naturgy Energy Group SA(a) |
3,936 | $ | 100,988 | |||||
Nippon Gas Co. Ltd. |
6,000 | 87,234 | ||||||
Osaka Gas Co. Ltd. |
9,500 | 140,741 | ||||||
Rubis SCA |
30,422 | 691,554 | ||||||
Saibu Gas Holdings Co. Ltd. |
1,400 | 16,248 | ||||||
Shizuoka Gas Co. Ltd.(a) |
20,500 | 150,335 | ||||||
Snam SpA |
29,438 | 130,986 | ||||||
Superior Plus Corp.(a) |
10,208 | 77,530 | ||||||
Toho Gas Co. Ltd. |
2,000 | 37,340 | ||||||
Tokyo Gas Co. Ltd. |
8,200 | 146,583 | ||||||
2,055,238 | ||||||||
Health Care Equipment & Supplies – 1.4% | ||||||||
Advanced Medical Solutions Group plc |
10,648 | 33,469 | ||||||
Alcon, Inc. |
7,790 | 474,367 | ||||||
Ambu A/S, Class B(a) |
3,172 | 35,524 | ||||||
Ansell Ltd.(a) |
2,200 | 39,714 | ||||||
Arjo AB, Class B |
4,131 | 16,471 | ||||||
Asahi Intecc Co. Ltd. |
3,200 | 54,555 | ||||||
BioMerieux |
825 | 73,010 | ||||||
Carl Zeiss Meditec AG |
715 | 86,602 | ||||||
Cellavision AB |
1,320 | 24,727 | ||||||
Cochlear Ltd. |
826 | 105,484 | ||||||
Coloplast A/S, Class B |
1,640 | 182,886 | ||||||
ConvaTec Group plc(b) |
26,224 | 65,821 | ||||||
Demant A/S* |
1,980 | 54,123 | ||||||
DiaSorin SpA |
293 | 38,312 | ||||||
Eckert & Ziegler Strahlen- und Medizintechnik AG |
264 | 10,447 | ||||||
Eiken Chemical Co. Ltd. |
1,600 | 19,785 | ||||||
El.En. SpA |
2,684 | 32,841 | ||||||
Elekta AB, Class B |
6,069 | 30,811 | ||||||
EssilorLuxottica SA |
1,645 | 260,703 | ||||||
EssilorLuxottica SA |
2,578 | 408,949 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. |
10,109 | 114,990 | ||||||
Fukuda Denshi Co. Ltd. |
4,100 | 214,055 | ||||||
Getinge AB, Class B |
2,980 | 60,488 | ||||||
GN Store Nord A/S(a) |
2,064 | 43,897 | ||||||
Hogy Medical Co. Ltd. |
1,200 | 26,642 | ||||||
Hoya Corp. |
5,100 | 476,082 | ||||||
Japan Lifeline Co. Ltd. |
23,500 | 158,738 |
See Accompanying Notes to the Financial Statements.
206 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Jeol Ltd. |
1,100 | $ | 40,408 | |||||
Koninklijke Philips NV |
14,293 | 181,073 | ||||||
Mani, Inc. |
4,200 | 61,318 | ||||||
Medacta Group SA(b) |
336 | 30,251 | ||||||
Medistim ASA |
1,188 | 27,538 | ||||||
Menicon Co. Ltd. |
1,900 | 32,558 | ||||||
Nagaileben Co. Ltd. |
1,500 | 20,608 | ||||||
Nakanishi, Inc. |
4,200 | 76,746 | ||||||
Nanosonics Ltd.* (a) |
16,777 | 44,092 | ||||||
Nihon Kohden Corp. |
2,300 | 51,606 | ||||||
Nipro Corp. |
46,100 | 347,995 | ||||||
Olympus Corp. |
20,500 | 433,074 | ||||||
Paramount Bed Holdings Co. Ltd. |
1,600 | 28,505 | ||||||
PHC Holdings Corp.(a) |
8,400 | 87,258 | ||||||
PolyNovo Ltd.* (a) |
32,604 | 41,697 | ||||||
Revenio Group OYJ |
924 | 34,392 | ||||||
Siemens Healthineers AG(b) |
4,715 | 217,066 | ||||||
Smith & Nephew plc |
14,391 | 170,662 | ||||||
Sonova Holding AG (Registered) |
785 | 185,670 | ||||||
STRATEC SE |
308 | 25,845 | ||||||
Straumann Holding AG (Registered) |
1,826 | 174,033 | ||||||
Surgical Science Sweden AB* (a) |
1,584 | 22,834 | ||||||
Sysmex Corp. |
2,700 | 145,831 | ||||||
Terumo Corp. |
12,200 | 371,331 | ||||||
Xvivo Perfusion AB* |
1,892 | 27,189 | ||||||
Ypsomed Holding AG (Registered) |
81 | 13,047 | ||||||
6,036,120 | ||||||||
Health Care Providers & Services – 0.5% | ||||||||
Alfresa Holdings Corp. |
5,500 | 63,313 | ||||||
Amplifon SpA(a) |
2,112 | 52,477 | ||||||
Arvida Group Ltd.(a) |
34,325 | 25,126 | ||||||
As One Corp. |
800 | 34,231 | ||||||
BML, Inc.(a) |
1,900 | 43,015 | ||||||
Chartwell Retirement Residences(a) |
5,472 | 31,692 | ||||||
China Evergrande New Energy Vehicle Group Ltd.* ‡ |
40,000 | — |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
CVS Group plc |
4,356 | $ | 94,839 | |||||
dentalcorp Holdings Ltd.* |
3,652 | 20,321 | ||||||
EBOS Group Ltd.(a) |
2,041 | 44,464 | ||||||
Fagron |
2,504 | 31,183 | ||||||
Fresenius Medical Care AG & Co. KGaA |
2,394 | 66,204 | ||||||
Fresenius SE & Co. KGaA |
9,061 | 208,662 | ||||||
Galenica AG(b) |
792 | 56,902 | ||||||
H.U. Group Holdings, Inc. |
20,500 | 382,043 | ||||||
Healius Ltd. |
14,608 | 32,040 | ||||||
Ilex Medical Ltd.(a) |
1,008 | 25,576 | ||||||
Integral Diagnostics Ltd.(a) |
13,068 | 21,977 | ||||||
Korian SA |
2,730 | 25,795 | ||||||
Mediclinic International plc |
11,132 | 63,571 | ||||||
Medicover AB, Class B |
1,320 | 16,341 | ||||||
Medipal Holdings Corp. |
5,100 | 63,306 | ||||||
Mediterranean Towers Ltd.(a) |
15,498 | 45,047 | ||||||
NMC Health plc* |
2,074 | 62 | ||||||
Oceania Healthcare Ltd. |
49,437 | 24,700 | ||||||
Orpea SA* (a) |
16,605 | 134,772 | ||||||
Raffles Medical Group Ltd. |
4,124 | 3,876 | ||||||
Ramsay Health Care Ltd. |
2,952 | 110,560 | ||||||
Ryman Healthcare Ltd. |
8,272 | 40,271 | ||||||
Ship Healthcare Holdings, Inc. |
6,000 | 115,087 | ||||||
Solasto Corp. |
4,400 | 26,554 | ||||||
Sonic Healthcare Ltd. |
7,462 | 156,365 | ||||||
Spire Healthcare Group plc* (b) |
14,036 | 35,068 | ||||||
Summerset Group Holdings Ltd. |
6,710 | 37,734 | ||||||
Suzuken Co. Ltd. |
1,880 | 41,866 | ||||||
Toho Holdings Co. Ltd. |
4,200 | 57,136 | ||||||
Uniphar plc |
9,064 | 31,354 | ||||||
2,263,530 | ||||||||
Health Care Technology – 0.1% | ||||||||
CompuGroup Medical SE & Co. KGaA |
624 | 19,735 | ||||||
Craneware plc |
1,936 | 41,237 | ||||||
EMIS Group plc |
2,728 | 58,358 | ||||||
M3, Inc. |
6,500 | 194,429 | ||||||
Pro Medicus Ltd.(a) |
1,100 | 39,264 | ||||||
Sectra AB, Class B* |
2,948 | 39,056 | ||||||
392,079 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 207 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – 1.3% | ||||||||
888 Holdings plc* |
100,163 | $ | 107,019 | |||||
Accor SA* |
2,133 | 51,102 | ||||||
AmRest Holdings SE* |
11,802 | 45,513 | ||||||
Arcland Service Holdings Co. Ltd. |
1,400 | 20,543 | ||||||
Aristocrat Leisure Ltd. |
10,373 | 245,886 | ||||||
Atom Corp.(a) |
5,800 | 30,827 | ||||||
Autogrill SpA* |
902 | 5,643 | ||||||
Basic-Fit NV* (a) (b) |
2,058 | 51,868 | ||||||
Betsson AB, Class B* |
42,886 | 312,027 | ||||||
Cafe de Coral Holdings Ltd. |
38,000 | 44,342 | ||||||
Carnival plc* |
4,488 | 35,974 | ||||||
Collins Foods Ltd.(a) |
6,204 | 37,291 | ||||||
Colowide Co. Ltd.(a) |
3,500 | 42,974 | ||||||
Compass Group plc |
24,682 | 521,890 | ||||||
Corporate Travel Management Ltd.(a) |
3,366 | 37,602 | ||||||
Create Restaurants Holdings, Inc. |
4,400 | 27,797 | ||||||
Dalata Hotel Group plc* (a) |
18,392 | 58,987 | ||||||
Domino’s Pizza Enterprises Ltd.(a) |
1,398 | 56,989 | ||||||
Domino’s Pizza Group plc |
24,948 | 64,973 | ||||||
Entain plc |
9,553 | 138,915 | ||||||
Evolution AB(a) (b) |
2,829 | 264,456 | ||||||
Flight Centre Travel Group Ltd.* (a) |
4,576 | 48,720 | ||||||
Flutter Entertainment plc* |
2,333 | 310,222 | ||||||
Food & Life Cos. Ltd. |
2,000 | 33,761 | ||||||
Fuji Kyuko Co. Ltd.(a) |
1,000 | 30,948 | ||||||
Galaxy Entertainment Group Ltd. |
36,000 | 164,411 | ||||||
Genting Singapore Ltd. |
104,400 | 59,389 | ||||||
Greggs plc |
2,464 | 57,249 | ||||||
Heiwa Corp. |
2,450 | 39,560 | ||||||
HIS Co. Ltd.* (a) |
4,400 | 60,952 | ||||||
Hongkong & Shanghai Hotels Ltd. (The)* (a) |
66,000 | 51,624 | ||||||
Ichibanya Co. Ltd.(a) |
1,000 | 30,881 | ||||||
Imperial Hotel Ltd. |
2,700 | 35,077 | ||||||
InterContinental Hotels Group plc |
2,419 | 130,789 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
J D Wetherspoon plc* |
3,795 | $ | 19,706 | |||||
Jumbo Interactive Ltd.(a) |
3,476 | 30,318 | ||||||
Kindred Group plc, SDR |
7,392 | 64,218 | ||||||
KOMEDA Holdings Co. Ltd. |
1,200 | 20,046 | ||||||
Kura Sushi, Inc. |
1,400 | 32,778 | ||||||
Kyoritsu Maintenance Co. Ltd.(a) |
1,600 | 65,987 | ||||||
La Francaise des Jeux SAEM(b) |
1,364 | 44,488 | ||||||
Mandarin Oriental International Ltd.* |
8,000 | 13,200 | ||||||
McDonald’s Holdings Co. Japan Ltd. |
1,100 | 38,188 | ||||||
Melco International Development Ltd.* (a) |
21,000 | 10,968 | ||||||
Melia Hotels International SA* |
9,988 | 46,397 | ||||||
MGM China Holdings Ltd.* (a) |
32,400 | 13,043 | ||||||
Mitchells & Butlers plc* |
22,924 | 30,669 | ||||||
MOS Food Services, Inc.(a) |
2,100 | 44,576 | ||||||
MTY Food Group, Inc. |
1,452 | 58,780 | ||||||
Ohsho Food Service Corp. |
704 | 30,029 | ||||||
Oriental Land Co. Ltd. |
3,300 | 442,931 | ||||||
Playtech plc* |
13,608 | 81,315 | ||||||
Plenus Co. Ltd. |
1,000 | 17,728 | ||||||
Resorttrust, Inc. |
4,200 | 64,709 | ||||||
Restaurant Brands International, Inc. |
4,469 | 265,214 | ||||||
Restaurant Brands New Zealand Ltd.(a) |
1,154 | 4,794 | ||||||
Round One Corp. |
15,300 | 65,159 | ||||||
Royal Holdings Co. Ltd.* |
1,600 | 25,598 | ||||||
Saizeriya Co. Ltd. |
1,800 | 33,618 | ||||||
Sands China Ltd.* |
40,400 | 70,508 | ||||||
Scandic Hotels Group AB* (a) (b) |
9,870 | 31,288 | ||||||
Shangri-La Asia Ltd.* |
32,000 | 17,692 | ||||||
SJM Holdings Ltd.* (a) |
76,000 | 23,720 | ||||||
SkiStar AB |
2,828 | 27,050 | ||||||
Skylark Holdings Co. Ltd. |
3,700 | 39,506 | ||||||
Sodexo SA |
1,394 | 123,640 | ||||||
SSP Group plc* |
20,152 | 46,938 | ||||||
Star Entertainment Grp Ltd. (The)* (a) |
11,421 | 21,471 | ||||||
Tabcorp Holdings Ltd.(a) |
42,592 | 26,282 | ||||||
Tokyotokeiba Co. Ltd. |
1,200 | 33,465 |
See Accompanying Notes to the Financial Statements.
208 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Toridoll Holdings Corp. |
1,100 | $ | 21,388 | |||||
Trainline plc* (b) |
33,203 | 127,186 | ||||||
TUI AG* |
28,116 | 42,665 | ||||||
Webjet Ltd.* (a) |
12,894 | 43,534 | ||||||
Whitbread plc |
2,508 | 74,269 | ||||||
Wynn Macau Ltd.* |
12,800 | 5,104 | ||||||
Yoshinoya Holdings Co. Ltd.(a) |
4,900 | 77,076 | ||||||
Zensho Holdings Co. Ltd.(a) |
1,800 | 44,929 | ||||||
5,718,369 | ||||||||
Household Durables – 1.1% | ||||||||
Ariston Holding NV |
3,402 | 29,017 | ||||||
Azorim-Investment Development & Construction Co. Ltd.(a) |
4,285 | 14,988 | ||||||
Barratt Developments plc |
22,673 | 98,205 | ||||||
Bellway plc |
2,640 | 56,384 | ||||||
Berkeley Group Holdings plc |
2,068 | 82,644 | ||||||
Bonava AB, Class B |
30,184 | 88,281 | ||||||
Breville Group Ltd.(a) |
2,420 | 30,717 | ||||||
Cairn Homes plc |
38,456 | 37,236 | ||||||
Casio Computer Co. Ltd. |
3,600 | 31,341 | ||||||
Countryside Partnerships plc* (a) (b) |
23,352 | 57,160 | ||||||
Crest Nicholson Holdings plc |
88,642 | 206,157 | ||||||
Danya Cebus Ltd.(a) |
1,638 | 39,234 | ||||||
De’ Longhi SpA(a) |
1,012 | 17,474 | ||||||
Dom Development SA |
2,244 | 39,694 | ||||||
Electra Consumer Products 1970 Ltd.(a) |
1,386 | 48,241 | ||||||
Electrolux AB, Class B(a) |
6,909 | 85,193 | ||||||
Fiskars OYJ Abp |
574 | 8,271 | ||||||
Focusrite plc(a) |
2,156 | 16,632 | ||||||
Forbo Holding AG (Registered) |
82 | 99,310 | ||||||
Fujitsu General Ltd. |
2,100 | 48,037 | ||||||
Glenveagh Properties plc* (b) |
34,100 | 33,366 | ||||||
Haseko Corp. |
3,500 | 36,075 | ||||||
Iida Group Holdings Co. Ltd. |
5,400 | 75,059 | ||||||
JM AB |
1,842 | 27,737 | ||||||
JS Global Lifestyle Co. Ltd.(b) |
22,000 | 17,712 | ||||||
Ki-Star Real Estate Co. Ltd.(a) |
3,300 | 102,795 | ||||||
Man Wah Holdings Ltd. |
19,200 | 10,713 |
Investments | Shares | Value | ||||||
Household Durables – (continued) | ||||||||
Nagawa Co. Ltd. |
500 | $ | 24,994 | |||||
Neinor Homes SA(b) |
5,964 | 47,569 | ||||||
Nikon Corp. |
5,800 | 56,152 | ||||||
Nobia AB(a) |
49,733 | 82,855 | ||||||
Open House Group Co. Ltd. |
1,800 | 64,184 | ||||||
Panasonic Holdings Corp. |
49,200 | 352,363 | ||||||
Persimmon plc |
6,929 | 104,109 | ||||||
Pressance Corp.(a) |
8,400 | 86,354 | ||||||
Redrow plc |
10,340 | 49,834 | ||||||
Rinnai Corp. |
600 | 40,933 | ||||||
Sangetsu Corp. |
2,256 | 23,921 | ||||||
SEB SA |
616 | 40,122 | ||||||
Sekisui Chemical Co. Ltd. |
10,500 | 131,396 | ||||||
Sekisui House Ltd. |
16,000 | 266,425 | ||||||
Sharp Corp.(a) |
6,200 | 37,166 | ||||||
Sony Group Corp. |
18,300 | 1,229,727 | ||||||
Sumitomo Forestry Co. Ltd. |
3,300 | 51,731 | ||||||
Tama Home Co. Ltd.(a) |
4,400 | 69,122 | ||||||
Taylor Wimpey plc |
81,549 | 88,051 | ||||||
Token Corp. |
2,600 | 137,316 | ||||||
Victoria plc* (a) |
5,192 | 30,128 | ||||||
Videndum plc |
2,376 | 35,180 | ||||||
Vistry Group plc |
7,172 | 49,793 | ||||||
YIT OYJ(a) |
63,747 | 159,905 | ||||||
Zojirushi Corp. |
1,300 | 13,128 | ||||||
4,710,131 | ||||||||
Household Products – 0.3% | ||||||||
Earth Corp. |
600 | 20,789 | ||||||
Essity AB, Class A |
616 | 12,933 | ||||||
Essity AB, Class B |
8,938 | 188,782 | ||||||
Henkel AG & Co. KGaA |
1,650 | 96,950 | ||||||
Henkel AG & Co. KGaA (Preference) |
2,870 | 180,916 | ||||||
Lion Corp. |
6,800 | 68,807 | ||||||
Pigeon Corp. |
2,400 | 31,454 | ||||||
Reckitt Benckiser Group plc |
11,234 | 747,601 | ||||||
Sano-Brunos Enterprises Ltd.(a) |
308 | 21,309 | ||||||
Unicharm Corp. |
5,600 | 170,749 | ||||||
1,540,290 | ||||||||
Independent Power and Renewable
Electricity Producers – 0.3% |
||||||||
Boralex, Inc., Class A |
2,081 | 58,934 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 209 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Independent Power and Renewable
Electricity Producers – (continued) |
||||||||
Brookfield Renewable Corp. |
2,068 | $ | 64,176 | |||||
Capital Power Corp. |
2,535 | 84,745 | ||||||
ContourGlobal plc(b) |
17,776 | 51,780 | ||||||
Corp. ACCIONA Energias Renovables SA |
1,276 | 50,143 | ||||||
Doral Group Renewable Energy Resources Ltd.* (a) |
2,244 | 6,905 | ||||||
Drax Group plc |
12,710 | 76,241 | ||||||
EDP Renovaveis SA |
3,895 | 82,036 | ||||||
Electric Power Development Co. Ltd. |
3,100 | 43,131 | ||||||
Encavis AG |
3,528 | 65,728 | ||||||
Enlight Renewable Energy Ltd.* |
14,280 | 29,071 | ||||||
eRex Co. Ltd. |
2,700 | 45,831 | ||||||
ERG SpA |
704 | 22,085 | ||||||
Greenvolt-Energias Renovaveis SA* |
4,875 | 37,486 | ||||||
Innergex Renewable Energy, Inc. |
559 | 6,147 | ||||||
Meridian Energy Ltd. |
28,875 | 81,862 | ||||||
Neoen SA(a) (b) |
1,147 | 40,040 | ||||||
Northland Power, Inc. |
3,566 | 103,630 | ||||||
Orron Energy ab |
3,982 | 8,266 | ||||||
RENOVA, Inc.* |
1,000 | 22,000 | ||||||
RWE AG |
10,086 | 388,672 | ||||||
Scatec ASA(a) (b) |
988 | 6,994 | ||||||
Solaria Energia y Medio Ambiente SA* |
4,811 | 76,079 | ||||||
TransAlta Corp.(a) |
3,906 | 34,362 | ||||||
Uniper SE |
2,028 | 6,077 | ||||||
Voltalia SA (Registered)* |
2,112 | 40,245 | ||||||
1,532,666 | ||||||||
Industrial Conglomerates – 1.0% | ||||||||
Aker ASA, Class A(a) |
264 | 18,600 | ||||||
Bonheur ASA |
336 | 9,550 | ||||||
Brookfield Business Corp., Class A(a) |
7,790 | 199,997 | ||||||
CK Hutchison Holdings Ltd. |
61,356 | 304,832 | ||||||
DCC plc |
2,132 | 118,806 | ||||||
Hitachi Ltd. |
19,800 | 900,515 |
Investments | Shares | Value | ||||||
Industrial Conglomerates – (continued) | ||||||||
Investment AB Latour, Class B |
2,024 | $ | 34,205 | |||||
Italmobiliare SpA |
245 | 6,260 | ||||||
Jardine Cycle & Carriage Ltd. |
3,600 | 75,658 | ||||||
Jardine Matheson Holdings Ltd. |
5,800 | 266,916 | ||||||
Keihan Holdings Co. Ltd. |
2,500 | 64,335 | ||||||
Keppel Corp. Ltd. |
28,700 | 141,360 | ||||||
Lifco AB, Class B |
4,576 | 66,070 | ||||||
Melrose Industries plc |
69,892 | 94,070 | ||||||
Nisshinbo Holdings, Inc. |
52,600 | 365,211 | ||||||
Nolato AB, Class B |
3,080 | 12,988 | ||||||
Noritsu Koki Co. Ltd.(a) |
5,000 | 90,154 | ||||||
NWS Holdings Ltd. |
44,000 | 31,221 | ||||||
Siemens AG (Registered) |
10,660 | 1,165,682 | ||||||
Smiths Group plc |
5,370 | 96,482 | ||||||
Storskogen Group AB, Class B |
7,392 | 5,409 | ||||||
TOKAI Holdings Corp.(a) |
43,795 | 261,647 | ||||||
Toshiba Corp. |
5,700 | 198,686 | ||||||
4,528,654 | ||||||||
Insurance – 4.0% | ||||||||
Admiral Group plc |
4,387 | 101,878 | ||||||
Aegon NV(a) |
25,335 | 117,312 | ||||||
Ageas SA/NV |
4,346 | 150,467 | ||||||
AIA Group Ltd. |
179,200 | 1,357,152 | ||||||
Allianz SE (Registered) |
8,446 | 1,520,933 | ||||||
Alm Brand A/S |
57,708 | 78,910 | ||||||
ASR Nederland NV |
3,374 | 148,694 | ||||||
Assicurazioni Generali SpA |
25,092 | 376,707 | ||||||
AUB Group Ltd.(a) |
5,876 | 77,703 | ||||||
Aviva plc |
60,639 | 291,904 | ||||||
AXA SA |
40,303 | 995,837 | ||||||
Baloise Holding AG (Registered) |
984 | 134,510 | ||||||
Beazley plc |
13,573 | 97,592 | ||||||
Clal Insurance Enterprises Holdings Ltd.* (a) |
2,684 | 46,527 | ||||||
Coface SA |
36,818 | 410,105 | ||||||
Conduit Holdings Ltd. |
47,888 | 184,981 | ||||||
Dai-ichi Life Holdings, Inc. |
20,600 | 326,737 | ||||||
Direct Line Insurance Group plc |
22,704 | 52,751 | ||||||
Fairfax Financial Holdings Ltd. |
533 | 261,446 | ||||||
Gjensidige Forsikring ASA |
2,860 | 52,238 | ||||||
Great Eastern Holdings Ltd. |
2,400 | 30,358 |
See Accompanying Notes to the Financial Statements.
210 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Great-West Lifeco, Inc. |
5,912 | $ | 136,699 | |||||
Grupo Catalana Occidente SA |
704 | 19,134 | ||||||
Hannover Rueck SE |
1,148 | 186,986 | ||||||
Harel Insurance Investments & Financial Services Ltd. |
3,957 | 38,271 | ||||||
Helvetia Holding AG (Registered) |
880 | 87,406 | ||||||
Hiscox Ltd. |
5,060 | 52,386 | ||||||
iA Financial Corp., Inc. |
2,829 | 157,248 | ||||||
IDI Insurance Co. Ltd.(a) |
3,036 | 81,164 | ||||||
Insurance Australia Group Ltd.(a) |
40,754 | 127,695 | ||||||
Intact Financial Corp. |
2,624 | 398,222 | ||||||
Japan Post Holdings Co. Ltd. |
48,000 | 322,810 | ||||||
Japan Post Insurance Co. Ltd. |
4,400 | 65,037 | ||||||
Just Group plc |
304,425 | 203,290 | ||||||
Lancashire Holdings Ltd. |
78,966 | 450,223 | ||||||
Legal & General Group plc |
128,002 | 343,237 | ||||||
Linea Directa Aseguradora SA Cia de Seguros y Reaseguros |
40,084 | 37,577 | ||||||
Manulife Financial Corp. |
40,836 | 675,985 | ||||||
Mapfre SA |
22,440 | 38,480 | ||||||
Medibank Pvt Ltd. |
48,899 | 87,864 | ||||||
Menora Mivtachim Holdings Ltd.* |
1,761 | 36,026 | ||||||
Migdal Insurance & Financial Holdings Ltd.* |
26,952 | 32,462 | ||||||
MS&AD Insurance Group Holdings, Inc. |
9,600 | 254,540 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) |
2,952 | 780,169 | ||||||
nib holdings Ltd. |
11,260 | 48,025 | ||||||
NN Group NV |
7,184 | 304,248 | ||||||
Phoenix Group Holdings plc |
15,047 | 93,967 | ||||||
Phoenix Holdings Ltd. (The) |
5,085 | 55,351 | ||||||
Poste Italiane SpA(b) |
11,425 | 99,595 | ||||||
Power Corp. of Canada |
12,063 | 299,176 | ||||||
Powszechny Zaklad Ubezpieczen SA |
9,856 | 55,360 | ||||||
Protector Forsikring ASA |
4,092 | 48,725 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Prudential plc |
40,631 | $ | 379,296 | |||||
PSC Insurance Group Ltd. |
14,212 | 43,622 | ||||||
QBE Insurance Group Ltd.(a) |
30,996 | 242,602 | ||||||
Sampo OYJ, Class A |
6,437 | 294,434 | ||||||
SCOR SE |
3,124 | 47,009 | ||||||
Sompo Holdings, Inc. |
6,700 | 279,161 | ||||||
Steadfast Group Ltd. |
17,908 | 57,943 | ||||||
Storebrand ASA |
12,259 | 95,272 | ||||||
Sun Life Financial, Inc. |
12,546 | 532,174 | ||||||
Suncorp Group Ltd. |
24,108 | 175,895 | ||||||
Swiss Life Holding AG (Registered) |
656 | 317,856 | ||||||
Swiss Re AG |
6,273 | 466,361 | ||||||
T&D Holdings, Inc. |
12,300 | 121,399 | ||||||
Talanx AG |
968 | 36,375 | ||||||
Tokio Marine Holdings, Inc. |
41,300 | 747,726 | ||||||
Topdanmark A/S |
880 | 40,655 | ||||||
Trisura Group Ltd.* |
2,200 | 63,917 | ||||||
Tryg A/S |
5,002 | 108,274 | ||||||
Unipol Gruppo SpA |
6,080 | 26,176 | ||||||
UnipolSai Assicurazioni SpA(a) |
11,528 | 26,000 | ||||||
Wuestenrot & Wuerttembergische AG |
7,216 | 101,844 | ||||||
Zurich Insurance Group AG |
3,116 | 1,330,469 | ||||||
17,966,560 | ||||||||
Interactive Media & Services – 0.2% | ||||||||
Adevinta ASA* |
6,732 | 46,102 | ||||||
Auto Trader Group plc(b) |
14,842 | 89,133 | ||||||
Baltic Classifieds Group plc |
16,280 | 26,092 | ||||||
Better Collective A/S* (a) |
2,464 | 31,997 | ||||||
carsales.com Ltd.(a) |
6,387 | 82,990 | ||||||
Hemnet Group AB |
6,720 | 83,434 | ||||||
Infocom Corp. |
1,600 | 23,004 | ||||||
Kakaku.com, Inc. |
1,600 | 27,138 | ||||||
Karnov Group AB* |
5,418 | 28,878 | ||||||
Moneysupermarket.com Group plc |
22,168 | 46,809 | ||||||
New Work SE |
159 | 19,926 | ||||||
REA Group Ltd.(a) |
1,056 | 82,105 | ||||||
Rightmove plc |
13,244 | 74,992 | ||||||
Scout24 SE(b) |
1,232 | 63,172 | ||||||
SEEK Ltd.(a) |
5,397 | 74,510 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 211 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Interactive Media & Services – (continued) | ||||||||
Wirtualna Polska Holding SA(b) |
1,936 | $ | 37,654 | |||||
Z Holdings Corp. |
27,200 | 70,381 | ||||||
908,317 | ||||||||
Internet & Direct Marketing Retail – 0.3% | ||||||||
Allegro.eu SA* (b) |
3,080 | 14,976 | ||||||
ASKUL Corp. |
1,000 | 10,462 | ||||||
ASOS plc* (a) |
6,300 | 40,873 | ||||||
Auction Technology Group plc* |
4,356 | 37,464 | ||||||
Belluna Co. Ltd. |
15,600 | 75,253 | ||||||
BHG Group AB* |
7,216 | 12,094 | ||||||
boohoo Group plc* |
15,511 | 7,249 | ||||||
Boozt AB* (a) (b) |
2,508 | 18,293 | ||||||
Delivery Hero SE* (b) |
4,264 | 140,548 | ||||||
Demae-Can Co. Ltd.* (a) |
8,800 | 28,774 | ||||||
Dustin Group AB(a) (b) |
3,680 | 15,319 | ||||||
Just Eat Takeaway.com NV* (b) |
1,936 | 33,265 | ||||||
Mercari, Inc.* |
1,900 | 31,638 | ||||||
Prosus NV* |
18,450 | 803,072 | ||||||
Rakuten Group, Inc.(a) |
15,800 | 70,796 | ||||||
Takkt AG |
2,728 | 35,320 | ||||||
Temple & Webster Group Ltd.* (a) |
7,304 | 26,155 | ||||||
THG plc* (a) |
50,904 | 31,180 | ||||||
Zalando SE* (b) |
938 | 21,629 | ||||||
Zalando SE* (b) |
1,750 | 40,352 | ||||||
ZOZO, Inc. |
2,800 | 59,622 | ||||||
1,554,334 | ||||||||
IT Services – 1.5% | ||||||||
Addnode Group AB |
38,991 | 339,437 | ||||||
Adesso SE |
220 | 21,787 | ||||||
Adyen NV* (b) |
451 | 647,490 | ||||||
Alten SA |
616 | 72,024 | ||||||
Amadeus IT Group SA* |
6,027 | 314,161 | ||||||
Appen Ltd.(a) |
2,420 | 3,931 | ||||||
Atea ASA* |
2,420 | 26,907 | ||||||
Atos SE* (a) |
968 | 9,452 | ||||||
Bechtle AG |
1,364 | 47,184 | ||||||
Bell System24 Holdings, Inc. |
13,500 | 125,613 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
BIPROGY, Inc. |
1,100 | $ | 23,793 | |||||
Bouvet ASA |
5,764 | 30,492 | ||||||
CANCOM SE |
1,981 | 49,026 | ||||||
Capgemini SE |
2,378 | 390,737 | ||||||
CGI, Inc.* |
3,239 | 260,583 | ||||||
Change, Inc.(a) |
3,500 | 46,907 | ||||||
Computacenter plc |
1,092 | 22,757 | ||||||
Computershare Ltd. |
8,897 | 143,766 | ||||||
Comture Corp.(a) |
2,300 | 37,509 | ||||||
Converge Technology Solutions Corp.* (a) |
11,792 | 48,238 | ||||||
Data#3 Ltd.(a) |
12,760 | 56,300 | ||||||
Digital Garage, Inc. |
1,300 | 31,224 | ||||||
DTS Corp. |
2,100 | 50,015 | ||||||
Econocom Group SA/NV |
29,084 | 79,193 | ||||||
Edenred |
4,059 | 208,449 | ||||||
FDM Group Holdings plc |
3,850 | 27,970 | ||||||
Formula Systems 1985 Ltd. |
389 | 31,721 | ||||||
Fujitsu Ltd. |
2,600 | 299,559 | ||||||
Future Corp. |
3,400 | 38,270 | ||||||
GFT Technologies SE |
924 | 30,183 | ||||||
GMO internet group, Inc. |
1,200 | 20,757 | ||||||
GMO Payment Gateway, Inc. |
1,000 | 72,190 | ||||||
Indra Sistemas SA(a) |
9,988 | 89,338 | ||||||
Infomart Corp. |
5,300 | 17,223 | ||||||
Itochu Techno-Solutions Corp. |
2,400 | 55,707 | ||||||
Kainos Group plc |
2,604 | 37,087 | ||||||
Keywords Studios plc |
3,066 | 85,074 | ||||||
KNOW IT AB |
1,144 | 22,755 | ||||||
Kontron AG |
3,168 | 45,871 | ||||||
Matrix IT Ltd. |
924 | 20,024 | ||||||
Megaport Ltd.* (a) |
3,960 | 15,421 | ||||||
NCC Group plc |
23,672 | 54,237 | ||||||
NEC Corp. |
3,300 | 109,345 | ||||||
NEC Networks & System Integration Corp. |
2,400 | 25,738 | ||||||
NET One Systems Co. Ltd. |
2,300 | 47,351 | ||||||
Network International Holdings plc* (b) |
14,574 | 54,534 | ||||||
Nexi SpA* (b) |
15,170 | 131,491 | ||||||
NEXTDC Ltd.* (a) |
10,736 | 57,118 | ||||||
Nomura Research Institute Ltd. |
6,445 | 143,309 | ||||||
NS Solutions Corp. |
800 | 18,434 |
See Accompanying Notes to the Financial Statements.
212 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
NSD Co. Ltd. |
4,200 | $ | 71,886 | |||||
NTT Data Corp. |
9,800 | 142,218 | ||||||
Nuvei Corp.* (b) |
836 | 25,128 | ||||||
Obic Co. Ltd. |
700 | 105,352 | ||||||
One Software Technologies Ltd. |
3,388 | 47,121 | ||||||
Otsuka Corp. |
2,500 | 78,969 | ||||||
Pushpay Holdings Ltd.* (a) |
37,926 | 27,541 | ||||||
Reply SpA |
484 | 52,668 | ||||||
SCSK Corp. |
2,700 | 39,909 | ||||||
SHIFT, Inc.* |
300 | 47,048 | ||||||
Shopify, Inc., Class A* |
17,220 | 589,675 | ||||||
Softcat plc |
2,288 | 29,504 | ||||||
Sopra Steria Group SACA |
396 | 52,446 | ||||||
SUNeVision Holdings Ltd. |
90,000 | 47,695 | ||||||
TechMatrix Corp. |
3,300 | 37,610 | ||||||
TELUS International CDA, Inc.* |
4,639 | 115,121 | ||||||
TietoEVRY OYJ |
1,598 | 38,126 | ||||||
TIS, Inc. |
4,600 | 124,257 | ||||||
Transcosmos, Inc. |
8,200 | 188,953 | ||||||
Tyro Payments Ltd.* (a) |
8,888 | 8,696 | ||||||
Wise plc, Class A* |
9,328 | 71,420 | ||||||
Worldline SA* (b) |
4,346 | 190,371 | ||||||
6,769,396 | ||||||||
Leisure Products – 0.3% | ||||||||
Bandai Namco Holdings, Inc. |
2,900 | 192,026 | ||||||
Beneteau SA |
9,512 | 105,481 | ||||||
BRP, Inc.(a) |
639 | 42,672 | ||||||
Games Workshop Group plc |
684 | 50,402 | ||||||
Harvia OYJ(b) |
748 | 10,616 | ||||||
MIPS AB(b) |
440 | 14,231 | ||||||
Sega Sammy Holdings, Inc. |
2,600 | 33,323 | ||||||
Shimano, Inc. |
1,100 | 170,771 | ||||||
Snow Peak, Inc.(a) |
1,600 | 21,120 | ||||||
Spin Master Corp.(b) |
1,936 | 59,753 | ||||||
Technogym SpA(b) |
4,905 | 33,741 | ||||||
Thule Group AB(b) |
2,024 | 39,856 | ||||||
Tomy Co. Ltd.(a) |
25,100 | 220,544 | ||||||
Universal Entertainment Corp.* |
300 | 4,057 | ||||||
Yamaha Corp. |
1,700 | 64,278 |
Investments | Shares | Value | ||||||
Leisure Products – (continued) | ||||||||
Yonex Co. Ltd. |
5,600 | $ | 52,106 | |||||
1,114,977 | ||||||||
Life Sciences Tools & Services – 0.4% | ||||||||
AddLife AB, Class B |
1,496 | 13,971 | ||||||
Bachem Holding AG, Class B(a) |
440 | 31,590 | ||||||
Biotage AB |
1,890 | 30,991 | ||||||
Chemometec A/S* |
572 | 53,953 | ||||||
Ergomed plc* |
2,420 | 34,160 | ||||||
Eurofins Scientific SE(a) |
2,050 | 131,252 | ||||||
Evotec SE* |
3,042 | 58,072 | ||||||
Gerresheimer AG |
1,260 | 72,229 | ||||||
Lonza Group AG (Registered) |
1,148 | 591,236 | ||||||
Oxford Nanopore Technologies plc* |
5,808 | 17,553 | ||||||
QIAGEN NV* |
4,369 | 190,314 | ||||||
Sartorius AG (Preference) |
410 | 144,705 | ||||||
Sartorius Stedim Biotech |
328 | 104,126 | ||||||
Siegfried Holding AG (Registered)* |
88 | 52,409 | ||||||
Tecan Group AG (Registered) |
220 | 80,767 | ||||||
Wuxi Biologics Cayman, Inc.* (b) |
57,500 | 260,037 | ||||||
1,867,365 | ||||||||
Machinery – 3.3% | ||||||||
Aalberts NV |
1,454 | 50,556 | ||||||
Alfa Laval AB |
4,920 | 121,147 | ||||||
Alstom SA |
4,577 | 94,364 | ||||||
Amada Co. Ltd. |
7,200 | 50,718 | ||||||
ANDRITZ AG |
2,081 | 96,791 | ||||||
Atlas Copco AB, Class A(a) |
51,004 | 544,821 | ||||||
Atlas Copco AB, Class B |
29,561 | 286,075 | ||||||
ATS Automation Tooling Systems, Inc.* |
1,980 | 62,562 | ||||||
Beijer Alma AB |
2,304 | 32,192 | ||||||
Bobst Group SA (Registered) |
528 | 32,448 | ||||||
Bodycote plc |
11,283 | 64,382 | ||||||
Bucher Industries AG (Registered) |
176 | 59,338 | ||||||
Burckhardt Compression Holding AG |
132 | 57,113 | ||||||
Bystronic AG |
55 | 31,601 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 213 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Cargotec OYJ, Class B(a) |
684 | $ | 25,743 | |||||
CKD Corp. |
23,000 | 282,713 | ||||||
CNH Industrial NV |
16,974 | 219,853 | ||||||
Concentric AB |
2,420 | 40,032 | ||||||
Construcciones y Auxiliar de Ferrocarriles SA |
5,166 | 134,794 | ||||||
Daetwyler Holding AG |
176 | 31,269 | ||||||
Daifuku Co. Ltd. |
2,300 | 105,534 | ||||||
Daimler Truck Holding AG* |
12,505 | 333,702 | ||||||
Danieli & C Officine Meccaniche SpA(a) |
2,310 | 47,146 | ||||||
Danieli & C Officine Meccaniche SpA (Retirement Savings Plan) |
11,193 | 153,770 | ||||||
DMG Mori Co. Ltd.(a) |
43,100 | 500,202 | ||||||
Duerr AG |
14,842 | 392,838 | ||||||
Ebara Corp. |
2,600 | 84,751 | ||||||
Electrolux Professional AB, Class B |
4,532 | 17,102 | ||||||
Epiroc AB, Class A |
9,440 | 144,413 | ||||||
Epiroc AB, Class B |
7,339 | 98,525 | ||||||
FANUC Corp. |
3,100 | 409,412 | ||||||
Fincantieri SpA* (a) |
198,567 | 100,973 | ||||||
FLSmidth & Co. A/S |
3,696 | 85,499 | ||||||
Fluidra SA |
912 | 12,376 | ||||||
Fuji Corp. |
33,800 | 447,528 | ||||||
Fujitec Co. Ltd. |
2,400 | 47,763 | ||||||
Fukushima Galilei Co. Ltd. |
4,100 | 112,958 | ||||||
GEA Group AG |
3,034 | 106,152 | ||||||
Georg Fischer AG (Registered) |
1,554 | 86,105 | ||||||
Giken Ltd. |
1,200 | 25,916 | ||||||
Glory Ltd.(a) |
20,600 | 318,074 | ||||||
Harmonic Drive Systems, Inc.(a) |
1,500 | 50,156 | ||||||
Hino Motors Ltd. |
10,300 | 42,826 | ||||||
Hitachi Construction Machinery Co. Ltd. |
2,800 | 54,894 | ||||||
Hitachi Zosen Corp. |
12,400 | 71,663 | ||||||
Hoshizaki Corp. |
2,400 | 68,867 | ||||||
Husqvarna AB, Class B |
7,480 | 44,404 | ||||||
IHI Corp. |
2,500 | 55,841 | ||||||
IMI plc |
3,784 | 53,500 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Indutrade AB |
5,016 | $ | 87,765 | |||||
Interpump Group SpA |
1,584 | 61,338 | ||||||
Interroll Holding AG (Registered) |
19 | 40,060 | ||||||
Iveco Group NV* (a) |
58,712 | 317,413 | ||||||
Japan Steel Works Ltd. (The) |
900 | 18,619 | ||||||
Jungheinrich AG (Preference) |
3,036 | 75,556 | ||||||
Kardex Holding AG (Registered) |
264 | 40,362 | ||||||
Kawasaki Heavy Industries Ltd. |
2,800 | 47,585 | ||||||
KION Group AG |
1,419 | 31,513 | ||||||
Komatsu Ltd. |
20,100 | 385,137 | ||||||
Komax Holding AG (Registered)(a) |
176 | 41,329 | ||||||
Kone OYJ, Class B |
5,904 | 241,870 | ||||||
Konecranes OYJ(a) |
2,273 | 57,196 | ||||||
Krones AG |
484 | 44,846 | ||||||
Kubota Corp.(a) |
14,300 | 199,778 | ||||||
Kurita Water Industries Ltd.(a) |
2,500 | 91,836 | ||||||
Makino Milling Machine Co. Ltd. |
8,200 | 253,500 | ||||||
Makita Corp. |
4,600 | 84,179 | ||||||
Manitou BF SA |
5,124 | 104,578 | ||||||
Max Co. Ltd. |
2,800 | 39,993 | ||||||
Meidensha Corp. |
15,800 | 210,582 | ||||||
Metso Outotec OYJ |
12,669 | 96,189 | ||||||
MINEBEA MITSUMI, Inc. |
7,311 | 108,409 | ||||||
MISUMI Group, Inc. |
3,900 | 83,439 | ||||||
Mitsubishi Heavy Industries Ltd. |
6,400 | 220,459 | ||||||
Mitsubishi Logisnext Co. Ltd. |
8,400 | 43,346 | ||||||
Miura Co. Ltd. |
2,100 | 42,880 | ||||||
Morgan Advanced Materials plc |
20,416 | 57,825 | ||||||
Nabtesco Corp. |
2,900 | 61,752 | ||||||
Nachi-Fujikoshi Corp. |
5,800 | 152,185 | ||||||
NGK Insulators Ltd. |
7,900 | 92,322 | ||||||
Nitta Corp. |
8,200 | 159,382 | ||||||
NSK Ltd. |
9,600 | 50,766 | ||||||
NTN Corp. |
168,100 | 299,704 | ||||||
OC Oerlikon Corp. AG (Registered) |
6,510 | 42,056 | ||||||
OKUMA Corp. |
9,200 | 308,864 | ||||||
OSG Corp. |
5,700 | 72,595 |
See Accompanying Notes to the Financial Statements.
214 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Palfinger AG |
787 | $ | 18,201 | |||||
Pfeiffer Vacuum Technology AG |
220 | 31,093 | ||||||
Rational AG |
55 | 31,039 | ||||||
Rotork plc |
13,640 | 40,235 | ||||||
Sandvik AB |
16,810 | 262,560 | ||||||
Schindler Holding AG |
658 | 107,338 | ||||||
Schindler Holding AG (Registered) |
220 | 34,646 | ||||||
SFS Group AG |
220 | 19,895 | ||||||
Shibaura Machine Co. Ltd. |
2,349 | 45,705 | ||||||
Skellerup Holdings Ltd. |
10,736 | 33,057 | ||||||
SKF AB, Class A |
1,408 | 21,508 | ||||||
SKF AB, Class B(a) |
7,626 | 110,279 | ||||||
SMC Corp. |
900 | 364,033 | ||||||
Spirax-Sarco Engineering plc |
1,148 | 142,088 | ||||||
Stabilus SE |
1,188 | 65,225 | ||||||
Stadler Rail AG |
1,056 | 31,129 | ||||||
Sulzer AG (Registered) |
546 | 36,418 | ||||||
Sumitomo Heavy Industries Ltd. |
3,300 | 62,676 | ||||||
Tadano Ltd. |
8,900 | 54,489 | ||||||
Takeuchi Manufacturing Co. Ltd. |
10,800 | 217,984 | ||||||
Takuma Co. Ltd. |
28,900 | 240,323 | ||||||
Techtronic Industries Co. Ltd. |
23,000 | 217,845 | ||||||
THK Co. Ltd.(a) |
1,700 | 29,714 | ||||||
Tocalo Co. Ltd. |
3,800 | 30,424 | ||||||
Toyota Industries Corp. |
3,800 | 195,835 | ||||||
Trelleborg AB, Class B |
4,682 | 103,085 | ||||||
Troax Group AB |
1,806 | 26,803 | ||||||
Tsubakimoto Chain Co. |
10,400 | 222,855 | ||||||
Union Tool Co. |
500 | 12,060 | ||||||
Valmet OYJ(a) |
3,228 | 73,475 | ||||||
VAT Group AG(a) (b) |
451 | 103,111 | ||||||
Vesuvius plc |
64,165 | 250,589 | ||||||
Volvo AB, Class A |
3,212 | 54,820 | ||||||
Volvo AB, Class B |
31,324 | 512,502 | ||||||
Wacker Neuson SE |
7,954 | 125,546 | ||||||
Wartsila OYJ Abp |
5,720 | 39,008 | ||||||
Weir Group plc (The) |
3,920 | 68,715 | ||||||
Yaskawa Electric Corp. |
4,100 | 113,923 | ||||||
14,908,841 |
Investments | Shares | Value | ||||||
Marine – 0.6% | ||||||||
AP Moller – Maersk A/S, Class A |
65 | $ | 130,129 | |||||
AP Moller – Maersk A/S, Class B |
123 | 257,347 | ||||||
Belships ASA(a) |
19,194 | 26,843 | ||||||
Clarkson plc |
1,408 | 44,823 | ||||||
D/S Norden A/S |
8,241 | 427,555 | ||||||
Dfds A/S |
10,127 | 307,606 | ||||||
Golden Ocean Group Ltd. |
4,796 | 39,394 | ||||||
Kawasaki Kisen Kaisha Ltd.(a) |
6,000 | 91,271 | ||||||
Kuehne + Nagel International AG (Registered)(a) |
697 | 148,628 | ||||||
Mitsui OSK Lines Ltd.(a) |
9,300 | 184,642 | ||||||
MPC Container Ships ASA(a) |
18,920 | 29,844 | ||||||
Nippon Yusen KK(a) |
12,300 | 223,351 | ||||||
NS United Kaiun Kaisha Ltd. |
4,100 | 102,062 | ||||||
Pacific Basin Shipping Ltd.(a) |
1,722,000 | 416,798 | ||||||
SITC International Holdings Co. Ltd. |
24,000 | 39,318 | ||||||
Stolt-Nielsen Ltd. |
6,560 | 157,425 | ||||||
Wallenius Wilhelmsen ASA |
5,632 | 40,059 | ||||||
Wilh Wilhelmsen Holding ASA, Class A(a) |
4,368 | 101,671 | ||||||
Wilh Wilhelmsen Holding ASA, Class B |
1,344 | 30,378 | ||||||
2,799,144 | ||||||||
Media – 1.0% | ||||||||
4imprint Group plc |
836 | 33,400 | ||||||
Ascential plc* (b) |
26,292 | 58,121 | ||||||
Cogeco Communications, Inc.(a) |
6,232 | 317,437 | ||||||
Cogeco, Inc. |
2,870 | 122,076 | ||||||
CyberAgent, Inc. |
6,300 | 51,880 | ||||||
Cyfrowy Polsat SA |
8,140 | 30,538 | ||||||
Dentsu Group, Inc.(a) |
3,800 | 118,498 | ||||||
Euromoney Institutional Investor plc |
4,083 | 68,070 | ||||||
Eutelsat Communications SA(a) |
51,537 | 517,516 | ||||||
Future plc |
2,332 | 32,703 | ||||||
Hakuhodo DY Holdings, Inc. |
4,700 | 39,716 | ||||||
Informa plc |
27,019 | 172,838 | ||||||
IPSOS |
13,407 | 649,290 | ||||||
ITV plc |
82,500 | 63,641 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 215 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
JCDecaux SE* |
968 | $ | 12,217 | |||||
Kadokawa Corp. |
2,200 | 39,549 | ||||||
Lagardere SA(a) |
2,552 | 44,619 | ||||||
Mediaset Espana Comunicacion SA* |
2,856 | 8,875 | ||||||
Metropole Television SA |
19,065 | 197,285 | ||||||
MFE-MediaForEurope NV, Class B |
79,422 | 39,641 | ||||||
Next Fifteen Communications Group plc |
5,104 | 51,596 | ||||||
Nine Entertainment Co. Holdings Ltd.(a) |
10,556 | 13,905 | ||||||
Nippon Television Holdings, Inc. |
2,400 | 17,923 | ||||||
oOh!media Ltd.(a) |
47,520 | 38,439 | ||||||
Pearson plc |
13,448 | 148,702 | ||||||
ProSiebenSat.1 Media SE |
2,772 | 18,849 | ||||||
Publicis Groupe SA |
4,879 | 273,609 | ||||||
Quebecor, Inc., Class B |
2,728 | 51,358 | ||||||
RTL Group SA(a) |
1,056 | 35,841 | ||||||
S4 Capital plc* |
10,516 | 21,273 | ||||||
Schibsted ASA, Class A |
1,144 | 17,616 | ||||||
Schibsted ASA, Class B |
2,493 | 36,999 | ||||||
SES SA, ADR |
5,964 | 42,311 | ||||||
Seven West Media Ltd.* (a) |
391,386 | 117,628 | ||||||
Shaw Communications, Inc., Class B |
6,424 | 164,785 | ||||||
SKY Perfect JSAT Holdings, Inc.(a) |
48,100 | 168,602 | ||||||
Stroeer SE & Co. KGaA |
620 | 25,283 | ||||||
Telenet Group Holding NV |
1,320 | 20,130 | ||||||
Television Francaise 1(a) |
35,383 | 224,512 | ||||||
TV Asahi Holdings Corp. |
8,400 | 78,781 | ||||||
TX Group AG |
352 | 48,891 | ||||||
ValueCommerce Co. Ltd. |
1,400 | 20,468 | ||||||
Viaplay Group AB, Class B* |
1,188 | 21,673 | ||||||
Vivendi SE |
9,786 | 80,123 | ||||||
WPP plc |
19,393 | 171,033 | ||||||
YouGov plc |
7,040 | 72,463 | ||||||
4,600,703 | ||||||||
Metals & Mining – 4.8% | ||||||||
Acerinox SA |
7,260 | 63,589 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Agnico Eagle Mines Ltd. |
6,970 | $ | 306,229 | |||||
Alamos Gold, Inc., Class A |
3,983 | 31,390 | ||||||
Algoma Steel Group, Inc. |
33,768 | 228,495 | ||||||
Allkem Ltd.* |
8,316 | 76,787 | ||||||
Alumina Ltd.(a) |
42,504 | 36,692 | ||||||
AMG Advanced Metallurgical Group NV |
1,540 | 48,188 | ||||||
Anglo American plc |
28,864 | 866,871 | ||||||
Antofagasta plc |
6,802 | 92,059 | ||||||
Aperam SA |
1,594 | 41,670 | ||||||
ArcelorMittal SA |
13,046 | 292,114 | ||||||
Asahi Holdings, Inc.(a) |
28,100 | 359,013 | ||||||
Aurubis AG |
1,050 | 66,334 | ||||||
AVZ Minerals Ltd.* ‡ (a) |
111,012 | 39,717 | ||||||
B2Gold Corp. |
27,675 | 84,402 | ||||||
Barrick Gold Corp. |
26,978 | 396,518 | ||||||
Bekaert SA |
1,540 | 42,922 | ||||||
Bellevue Gold Ltd.* (a) |
49,941 | 23,632 | ||||||
BHP Group Ltd. |
105,370 | 2,517,274 | ||||||
BlueScope Steel Ltd. |
10,209 | 102,688 | ||||||
Boliden AB |
5,166 | 150,346 | ||||||
Capricorn Metals Ltd.* |
19,272 | 41,777 | ||||||
Capstone Copper Corp.* |
10,472 | 24,260 | ||||||
Centamin plc |
383,678 | 391,919 | ||||||
Centerra Gold, Inc. |
17,010 | 78,936 | ||||||
Chalice Mining Ltd.* (a) |
10,120 | 27,632 | ||||||
Champion Iron Ltd.(a) |
6,468 | 19,356 | ||||||
Daido Steel Co. Ltd.(a) |
13,100 | 340,203 | ||||||
De Grey Mining Ltd.* (a) |
86,240 | 58,455 | ||||||
Deterra Royalties Ltd. |
15,180 | 39,701 | ||||||
Dowa Holdings Co. Ltd. |
1,100 | 35,042 | ||||||
Dundee Precious Metals, Inc. |
56,826 | 257,457 | ||||||
Eldorado Gold Corp.* (a) |
61,500 | 343,107 | ||||||
Endeavour Mining plc |
3,438 | 60,037 | ||||||
Equinox Gold Corp.* (a) |
9,450 | 31,106 | ||||||
Eramet SA |
504 | 33,051 | ||||||
ERO Copper Corp.* (a) |
4,268 | 48,530 | ||||||
Evolution Mining Ltd.(a) |
35,786 | 47,597 | ||||||
Falcon Metals Ltd.* |
1 | — | (e) | |||||
Ferrexpo plc |
80,770 | 94,947 | ||||||
Filo Mining Corp.* |
2,772 | 33,165 | ||||||
First Majestic Silver Corp. |
3,432 | 28,834 | ||||||
First Quantum Minerals Ltd.(a) |
9,143 | 161,069 |
See Accompanying Notes to the Financial Statements.
216 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Fortescue Metals Group Ltd.(a) |
37,802 | $ | 355,336 | |||||
Fortuna Silver Mines, Inc.* (a) |
98,523 | 273,745 | ||||||
Franco-Nevada Corp. |
2,747 | 338,992 | ||||||
Fresnillo plc |
3,872 | 32,499 | ||||||
Glencore plc |
247,435 | 1,422,997 | ||||||
Gold Road Resources Ltd.(a) |
80,872 | 70,072 | ||||||
Grange Resources Ltd.(a) |
140,658 | 55,765 | ||||||
Granges AB |
36,654 | 247,612 | ||||||
Grupa Kety SA |
308 | 31,824 | ||||||
Hill & Smith Holdings plc |
5,236 | 59,561 | ||||||
Hitachi Metals Ltd.* |
4,740 | 69,266 | ||||||
Hochschild Mining plc |
97,398 | 59,826 | ||||||
Hudbay Minerals, Inc. |
63,878 | 242,109 | ||||||
IAMGOLD Corp.* |
17,424 | 25,547 | ||||||
IGO Ltd. |
12,886 | 125,989 | ||||||
Iluka Resources Ltd. |
6,916 | 38,254 | ||||||
Imdex Ltd. |
22,176 | 28,928 | ||||||
ioneer Ltd.* (a) |
110,528 | 39,226 | ||||||
Ivanhoe Mines Ltd., Class A* (a) |
13,068 | 90,534 | ||||||
Jastrzebska Spolka Weglowa SA* |
3,124 | 27,198 | ||||||
Jervois Global Ltd.* (a) |
49,165 | 15,405 | ||||||
JFE Holdings, Inc.(a) |
12,300 | 112,792 | ||||||
K92 Mining, Inc.* |
16,544 | 75,076 | ||||||
KGHM Polska Miedz SA |
2,288 | 45,872 | ||||||
Kinross Gold Corp. |
22,985 | 83,242 | ||||||
Kobe Steel Ltd. |
125,800 | 516,285 | ||||||
Labrador Iron Ore Royalty Corp.(a) |
22,345 | 462,610 | ||||||
Lake Resources NL* (a) |
76,296 | 51,715 | ||||||
Lithium Americas Corp.* |
2,508 | 62,330 | ||||||
Lundin Gold, Inc. |
6,342 | 45,750 | ||||||
Lundin Mining Corp. |
12,726 | 66,613 | ||||||
Lynas Rare Earths Ltd.* |
18,409 | 98,058 | ||||||
MAG Silver Corp.* |
4,656 | 61,782 | ||||||
Maruichi Steel Tube Ltd. |
6,100 | 115,364 | ||||||
Mineral Resources Ltd. |
3,526 | 164,886 | ||||||
Mitsubishi Materials Corp. |
3,800 | 49,751 | ||||||
Mitsui Mining & Smelting Co. Ltd. |
18,000 | 364,517 | ||||||
New Gold, Inc.* (a) |
221,072 | 199,346 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Newcrest Mining Ltd.(a) |
14,350 | $ | 159,205 | |||||
Nickel Industries Ltd.(a) |
46,684 | 21,792 | ||||||
Nippon Light Metal Holdings Co. Ltd. |
20,500 | 200,124 | ||||||
Nippon Steel Corp. |
20,215 | 277,789 | ||||||
Norsk Hydro ASA |
33,333 | 211,536 | ||||||
Northern Star Resources Ltd.(a) |
17,556 | 98,117 | ||||||
Novagold Resources, Inc.* |
16,044 | 73,983 | ||||||
OceanaGold Corp.* |
1,000 | 1,452 | ||||||
OceanaGold Corp.* |
54,818 | 79,572 | ||||||
Orla Mining Ltd.* (a) |
10,780 | 33,983 | ||||||
Osisko Gold Royalties Ltd.(a) |
9,030 | 96,718 | ||||||
Osisko Mining, Inc.* |
27,456 | 57,164 | ||||||
Outokumpu OYJ |
7,392 | 29,684 | ||||||
OZ Minerals Ltd.(a) |
6,649 | 102,764 | ||||||
Pan American Silver Corp. |
4,082 | 65,088 | ||||||
Perseus Mining Ltd.(a) |
97,826 | 114,163 | ||||||
Pilbara Minerals Ltd.* |
35,307 | 114,917 | ||||||
Regis Resources Ltd.(a) |
245,262 | 239,170 | ||||||
Rio Tinto Ltd. |
7,872 | 443,977 | ||||||
Rio Tinto plc |
21,812 | 1,139,388 | ||||||
Salzgitter AG |
13,366 | 299,081 | ||||||
Sandfire Resources Ltd.(a) |
125,911 | 280,188 | ||||||
Sandstorm Gold Ltd.(a) |
13,772 | 67,747 | ||||||
Sanyo Special Steel Co. Ltd. |
8,600 | 110,686 | ||||||
Sayona Mining Ltd.* (a) |
267,529 | 40,202 | ||||||
Seabridge Gold, Inc.* |
5,588 | 59,606 | ||||||
Silver Lake Resources Ltd.* |
70,620 | 50,125 | ||||||
SilverCrest Metals, Inc.* (a) |
9,416 | 47,147 | ||||||
Sims Ltd. |
3,192 | 24,943 | ||||||
Solaris Resources, Inc.* (a) |
3,872 | 13,767 | ||||||
SolGold plc* (a) |
78,960 | 14,546 | ||||||
South32 Ltd.(a) |
102,254 | 235,391 | ||||||
SSAB AB, Class A |
10,296 | 49,512 | ||||||
SSAB AB, Class B |
9,504 | 44,155 | ||||||
SSR Mining, Inc.(a) |
3,864 | 53,142 | ||||||
St Barbara Ltd.* (a) |
278,964 | 90,976 | ||||||
Stalprodukt SA |
546 | 25,347 | ||||||
Stelco Holdings, Inc. |
596 | 14,991 | ||||||
Sumitomo Metal Mining Co. Ltd. |
5,900 | 166,003 | ||||||
Syrah Resources Ltd.* |
68,502 | 104,691 | ||||||
Teck Resources Ltd., Class B(a) |
9,922 | 301,650 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 217 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
thyssenkrupp AG* |
8,316 | $ | 43,824 | |||||
Toho Titanium Co. Ltd. |
200 | 3,024 | ||||||
Tokyo Steel Manufacturing Co. Ltd.(a) |
28,700 | 246,383 | ||||||
Torex Gold Resources, Inc.* |
24,641 | 167,639 | ||||||
Turquoise Hill Resources Ltd.* (a) |
2,730 | 76,773 | ||||||
UACJ Corp. |
11,100 | 158,395 | ||||||
voestalpine AG |
1,880 | 40,841 | ||||||
Vulcan Energy Resources Ltd.* (a) |
6,732 | 32,802 | ||||||
Wesdome Gold Mines Ltd.* |
8,888 | 53,235 | ||||||
West African Resources Ltd.* (a) |
298,070 | 198,225 | ||||||
Westgold Resources Ltd.* (a) |
153,415 | 71,614 | ||||||
Wheaton Precious Metals Corp. |
6,929 | 226,403 | ||||||
Yamana Gold, Inc. |
17,010 | 74,572 | ||||||
Yamato Kogyo Co. Ltd. |
1,300 | 37,784 | ||||||
Yodogawa Steel Works Ltd.(a) |
11,100 | 180,799 | ||||||
21,556,580 | ||||||||
Multiline Retail – 0.7% | ||||||||
B&M European Value Retail SA(a) |
16,926 | 62,868 | ||||||
Canadian Tire Corp. Ltd., Class A(a) |
1,164 | 130,297 | ||||||
Dollarama, Inc.(a) |
4,141 | 245,749 | ||||||
Europris ASA(b) |
61,828 | 368,107 | ||||||
H2O Retailing Corp. |
5,615 | 47,221 | ||||||
Harvey Norman Holdings Ltd.(a) |
17,952 | 47,754 | ||||||
Isetan Mitsukoshi Holdings Ltd. |
9,100 | 80,815 | ||||||
Izumi Co. Ltd. |
13,600 | 274,406 | ||||||
Next plc |
2,255 | 127,971 | ||||||
Pan Pacific International Holdings Corp. |
8,200 | 134,667 | ||||||
Ryohin Keikaku Co. Ltd. |
6,000 | 56,555 | ||||||
Seria Co. Ltd. |
1,000 | 16,362 | ||||||
Takashimaya Co. Ltd.(a) |
53,500 | 661,574 | ||||||
Tokmanni Group Corp. |
13,120 | 158,718 | ||||||
Warehouse Group Ltd. (The)(a) |
30,712 | 55,311 |
Investments | Shares | Value | ||||||
Multiline Retail – (continued) | ||||||||
Wesfarmers Ltd. |
15,621 | $ | 454,093 | |||||
2,922,468 | ||||||||
Multi-Utilities – 0.5% | ||||||||
A2A SpA |
51,964 | 57,624 | ||||||
ACEA SpA |
1,552 | 19,557 | ||||||
AGL Energy Ltd.(a) |
12,344 | 53,754 | ||||||
Algonquin Power & Utilities Corp.(a) |
11,661 | 128,916 | ||||||
Atco Ltd., Class I |
1,064 | 32,995 | ||||||
Canadian Utilities Ltd., Class A(a) |
1,628 | 43,265 | ||||||
Centrica plc |
117,711 | 103,840 | ||||||
E.ON SE |
43,747 | 366,480 | ||||||
Engie SA |
36,654 | 476,530 | ||||||
Hera SpA |
19,272 | 45,942 | ||||||
Iren SpA |
19,624 | 29,171 | ||||||
National Grid plc |
54,612 | 596,330 | ||||||
REN – Redes Energeticas Nacionais SGPS SA |
31,584 | 81,786 | ||||||
Sembcorp Industries Ltd. |
4,000 | 8,226 | ||||||
Telecom Plus plc |
4,728 | 115,676 | ||||||
Veolia Environnement SA |
10,824 | 241,666 | ||||||
2,401,758 | ||||||||
Oil, Gas & Consumable Fuels – 6.7% | ||||||||
Advantage Energy Ltd.* |
10,340 | 78,078 | ||||||
Africa Oil Corp.(a) |
135,900 | 332,763 | ||||||
Aker BP ASA(a) |
6,319 | 201,418 | ||||||
Ampol Ltd.(a) |
2,420 | 42,138 | ||||||
ARC Resources Ltd.(a) |
15,047 | 211,577 | ||||||
Athabasca Oil Corp.* |
174,619 | 352,041 | ||||||
Baytex Energy Corp.* |
17,514 | 95,014 | ||||||
Beach Energy Ltd. |
39,336 | 39,994 | ||||||
Birchcliff Energy Ltd.(a) |
89,421 | 694,233 | ||||||
BP plc |
431,033 | 2,381,103 | ||||||
BRIGHTOIL* ‡ |
50,147 | — | ||||||
BW Energy Ltd.* |
14,036 | 35,506 | ||||||
BW LPG Ltd.(b) |
29,766 | 240,777 | ||||||
Cameco Corp. |
6,765 | 160,241 | ||||||
Canadian Natural Resources Ltd. |
24,354 | 1,458,865 | ||||||
Capricorn Energy plc* |
23,656 | 67,437 | ||||||
Cenovus Energy, Inc.(a) |
31,488 | 635,739 |
See Accompanying Notes to the Financial Statements.
218 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Crescent Point Energy Corp. |
12,474 | $ | 97,392 | |||||
Denison Mines Corp.* |
53,196 | 67,078 | ||||||
Diversified Energy Co. plc(b) |
301,022 | 436,000 | ||||||
DNO ASA |
22,968 | 29,956 | ||||||
Enbridge, Inc. |
29,151 | 1,134,368 | ||||||
ENEOS Holdings, Inc. |
73,850 | 243,359 | ||||||
Energean plc |
38,212 | 629,574 | ||||||
Energy Fuels, Inc.* |
10,296 | 74,349 | ||||||
Enerplus Corp. |
7,052 | 122,113 | ||||||
Eni SpA |
52,726 | 690,689 | ||||||
Equinor ASA |
23,001 | 841,450 | ||||||
Euronav NV |
4,116 | 71,720 | ||||||
FLEX LNG Ltd. |
1,176 | 36,535 | ||||||
Freehold Royalties Ltd. |
5,060 | 62,877 | ||||||
Frontera Energy Corp.* |
16,318 | 136,377 | ||||||
Galp Energia SGPS SA, Class B |
11,726 | 119,081 | ||||||
Gaztransport Et Technigaz SA |
660 | 76,777 | ||||||
Gibson Energy, Inc. |
1,537 | 26,198 | ||||||
Hafnia Ltd. |
45,745 | 235,834 | ||||||
Harbour Energy plc |
13,992 | 60,878 | ||||||
Headwater Exploration, Inc.* (a) |
54,407 | 287,980 | ||||||
Idemitsu Kosan Co. Ltd. |
5,882 | 128,614 | ||||||
Imperial Oil Ltd. |
4,879 | 265,080 | ||||||
Inpex Corp. |
22,500 | 229,791 | ||||||
International Petroleum Corp.* (a) |
32,923 | 328,011 | ||||||
Itochu Enex Co. Ltd.(a) |
16,500 | 113,563 | ||||||
Iwatani Corp. |
1,397 | 51,506 | ||||||
Japan Petroleum Exploration Co. Ltd.(a) |
11,300 | 293,457 | ||||||
Karoon Energy Ltd.* |
45,716 | 61,974 | ||||||
Keyera Corp.(a) |
3,108 | 66,532 | ||||||
Koninklijke Vopak NV |
1,558 | 31,875 | ||||||
MEG Energy Corp.* |
4,928 | 73,592 | ||||||
Neste OYJ |
6,355 | 278,498 | ||||||
New Hope Corp. Ltd. |
17,010 | 61,455 | ||||||
NexGen Energy Ltd.* (a) |
16,236 | 68,084 | ||||||
Norwegian Energy Co. ASA* (a) |
882 | 32,661 | ||||||
NuVista Energy Ltd.* (a) |
57,974 | 574,194 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Oil Refineries Ltd. |
123,564 | $ | 46,273 | |||||
OMV AG |
3,649 | 168,207 | ||||||
Pantheon Resources plc* (a) |
52,080 | 60,022 | ||||||
Paramount Resources Ltd., Class A(a) |
2,772 | 58,649 | ||||||
Parex Resources, Inc.(a) |
39,811 | 606,483 | ||||||
Parkland Corp. |
2,231 | 45,044 | ||||||
Paz Oil Co. Ltd.* |
421 | 50,483 | ||||||
Pembina Pipeline Corp.(a) |
7,503 | 247,414 | ||||||
Peyto Exploration & Development Corp.(a) |
58,138 | 542,147 | ||||||
Polski Koncern Naftowy ORLEN SA |
5,060 | 58,242 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA* |
60,060 | 64,801 | ||||||
PrairieSky Royalty Ltd.(a) |
5,586 | 86,654 | ||||||
Repsol SA |
29,356 | 398,797 | ||||||
Santos Ltd. |
69,495 | 342,177 | ||||||
Serica Energy plc |
77,449 | 267,513 | ||||||
Shell plc |
159,572 | 4,416,706 | ||||||
Spartan Delta Corp.* |
44,362 | 407,829 | ||||||
Suncor Energy, Inc. |
27,757 | 953,552 | ||||||
Tamarack Valley Energy Ltd.(a) |
118,203 | 454,944 | ||||||
TC Energy Corp. |
14,965 | 656,505 | ||||||
Topaz Energy Corp. |
3,344 | 56,483 | ||||||
TotalEnergies SE |
50,963 | 2,775,347 | ||||||
Tourmaline Oil Corp.(a) |
6,658 | 374,670 | ||||||
Tullow Oil plc* (a) |
513,894 | 239,627 | ||||||
United Energy Group Ltd. |
358,000 | 34,660 | ||||||
Vermilion Energy, Inc. |
5,002 | 116,575 | ||||||
Washington H Soul Pattinson & Co. Ltd.(a) |
2,856 | 51,026 | ||||||
Whitecap Resources, Inc. |
12,558 | 97,220 | ||||||
Whitehaven Coal Ltd.(a) |
16,702 | 96,441 | ||||||
Woodside Energy Group Ltd.(a) |
38,213 | 879,180 | ||||||
29,820,067 | ||||||||
Paper & Forest Products – 0.6% | ||||||||
Altri SGPS SA(a) |
21,115 | 117,597 | ||||||
Canfor Corp.* |
18,163 | 272,568 | ||||||
Daio Paper Corp. |
3,745 | 27,665 | ||||||
Hokuetsu Corp.(a) |
61,600 | 319,946 | ||||||
Holmen AB, Class B |
1,540 | 55,828 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 219 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – (continued) | ||||||||
Interfor Corp.* (a) |
16,482 | $ | 292,412 | |||||
Metsa Board OYJ, Class B |
6,595 | 49,603 | ||||||
Mondi plc |
10,004 | 168,452 | ||||||
Navigator Co. SA (The) |
5,269 | 20,091 | ||||||
Nippon Paper Industries Co. Ltd.(a) |
36,500 | 212,662 | ||||||
Norske Skog ASA* (c) |
28,495 | 175,407 | ||||||
Oji Holdings Corp. |
25,400 | 88,178 | ||||||
Semapa-Sociedade de Investimento e Gestao |
3,520 | 44,810 | ||||||
Stella-Jones, Inc.(a) |
3,566 | 107,264 | ||||||
Stora Enso OYJ, Class R |
11,644 | 151,795 | ||||||
Svenska Cellulosa AB SCA, Class A(a) |
2,068 | 24,927 | ||||||
Svenska Cellulosa AB SCA, Class B |
8,692 | 102,491 | ||||||
UPM-Kymmene OYJ |
8,364 | 280,319 | ||||||
West Fraser Timber Co. Ltd.(a) |
1,640 | 122,984 | ||||||
2,634,999 | ||||||||
Personal Products – 0.9% | ||||||||
Beiersdorf AG |
1,640 | 157,518 | ||||||
Blackmores Ltd.(a) |
1,320 | 57,397 | ||||||
euglena Co. Ltd.* (a) |
4,400 | 26,376 | ||||||
Fancl Corp. |
400 | 7,592 | ||||||
Interparfums SA |
145 | 6,993 | ||||||
Jamieson Wellness, Inc.(b) |
2,330 | 56,933 | ||||||
Kao Corp. |
7,500 | 282,067 | ||||||
Kobayashi Pharmaceutical Co. Ltd. |
900 | 47,835 | ||||||
Kose Corp. |
700 | 70,031 | ||||||
L’Occitane International SA(a) |
4,500 | 11,064 | ||||||
L’Oreal SA |
3,649 | 1,147,224 | ||||||
Milbon Co. Ltd. |
1,000 | 41,309 | ||||||
Noevir Holdings Co. Ltd. |
1,000 | 37,003 | ||||||
Pola Orbis Holdings, Inc. |
2,000 | 22,135 | ||||||
PZ Cussons plc |
28,228 | 65,001 | ||||||
Rohto Pharmaceutical Co. Ltd.(a) |
2,000 | 62,233 | ||||||
Shiseido Co. Ltd. |
6,400 | 221,967 | ||||||
Unilever plc |
14,567 | 666,592 | ||||||
Unilever plc |
23,440 | 1,070,659 | ||||||
4,057,929 |
Investments | Shares | Value | ||||||
Pharmaceuticals – 4.7% | ||||||||
ALK-Abello A/S* |
2,640 | $ | 43,740 | |||||
Almirall SA |
4,471 | 41,692 | ||||||
Astellas Pharma, Inc. |
28,700 | 395,160 | ||||||
AstraZeneca plc |
22,591 | 2,667,081 | ||||||
Bausch Health Cos., Inc.* |
7,014 | 45,558 | ||||||
Bayer AG (Registered) |
20,746 | 1,091,239 | ||||||
Camurus AB* |
2,860 | 66,308 | ||||||
Canopy Growth Corp.* |
6,156 | 22,971 | ||||||
Chugai Pharmaceutical Co. Ltd. |
8,200 | 190,332 | ||||||
COSMO Pharmaceuticals NV(a) |
413 | 24,142 | ||||||
Daiichi Sankyo Co. Ltd. |
29,800 | 955,741 | ||||||
Dechra Pharmaceuticals plc |
2,142 | 64,614 | ||||||
Eisai Co. Ltd. |
4,500 | 271,692 | ||||||
Faes Farma SA |
17,235 | 64,986 | ||||||
Financiere de Tubize SA(a) |
264 | 17,508 | ||||||
GSK plc |
57,826 | 951,266 | ||||||
H Lundbeck A/S, Class A* |
484 | 1,645 | ||||||
Haw Par Corp. Ltd. |
3,200 | 21,369 | ||||||
Hikma Pharmaceuticals plc |
2,900 | 41,703 | ||||||
Hisamitsu Pharmaceutical Co., Inc. |
1,900 | 46,914 | ||||||
Hutchmed China Ltd.* (a) |
7,150 | 12,480 | ||||||
Indivior plc* |
4,124 | 78,772 | ||||||
Ipsen SA |
770 | 79,147 | ||||||
JCR Pharmaceuticals Co. Ltd. |
2,400 | 35,765 | ||||||
Kaken Pharmaceutical Co. Ltd. |
1,500 | 38,399 | ||||||
Kissei Pharmaceutical Co. Ltd. |
1,400 | 24,763 | ||||||
KYORIN Holdings, Inc. |
4,400 | 54,439 | ||||||
Kyowa Kirin Co. Ltd. |
4,300 | 101,399 | ||||||
Merck KGaA |
2,091 | 340,996 | ||||||
Mochida Pharmaceutical Co. Ltd. |
900 | 20,739 | ||||||
Nippon Shinyaku Co. Ltd.(a) |
1,400 | 77,613 | ||||||
Novartis AG (Registered) |
35,055 | 2,833,824 | ||||||
Novo Nordisk A/S, Class B |
24,190 | 2,630,454 | ||||||
Ono Pharmaceutical Co. Ltd. |
5,900 | 138,772 | ||||||
Orion OYJ, Class A |
352 | 16,143 | ||||||
Orion OYJ, Class B |
1,404 | 64,595 | ||||||
Otsuka Holdings Co. Ltd. |
8,300 | 266,141 | ||||||
Recordati Industria Chimica e Farmaceutica SpA |
1,628 | 61,192 | ||||||
Roche Holding AG |
10,291 | 3,419,707 |
See Accompanying Notes to the Financial Statements.
220 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Roche Holding AG – BR |
463 | $ | 187,930 | |||||
Sanofi |
16,646 | 1,436,760 | ||||||
Santen Pharmaceutical Co. Ltd. |
4,500 | 30,820 | ||||||
Sawai Group Holdings Co. Ltd. |
14,100 | 406,489 | ||||||
Shionogi & Co. Ltd. |
4,400 | 203,963 | ||||||
Sosei Group Corp.* |
5,200 | 71,125 | ||||||
Sumitomo Pharma Co. Ltd. |
3,600 | 25,117 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. |
600 | 21,637 | ||||||
Takeda Pharmaceutical Co. Ltd. |
32,117 | 846,600 | ||||||
Teva Pharmaceutical Industries Ltd.* (a) |
26,117 | 234,641 | ||||||
Torii Pharmaceutical Co. Ltd. |
800 | 16,255 | ||||||
Towa Pharmaceutical Co. Ltd. |
9,400 | 141,346 | ||||||
Tsumura & Co. |
900 | 18,801 | ||||||
UCB SA |
2,173 | 163,911 | ||||||
Vetoquinol SA |
308 | 25,601 | ||||||
Virbac SA |
132 | 32,355 | ||||||
ZERIA Pharmaceutical Co. Ltd.(a) |
1,800 | 26,848 | ||||||
21,211,200 | ||||||||
Professional Services – 1.3% | ||||||||
Adecco Group AG (Registered) |
3,690 | 115,558 | ||||||
AFRY AB, Class B |
2,640 | 35,429 | ||||||
ALS Ltd.(a) |
8,712 | 63,731 | ||||||
Amadeus Fire AG |
352 | 35,555 | ||||||
Applus Services SA |
47,396 | 280,595 | ||||||
BayCurrent Consulting, Inc. |
3,000 | 84,570 | ||||||
Benefit One, Inc. |
1,000 | 13,886 | ||||||
BeNext-Yumeshin Group Co.(a) |
4,400 | 53,226 | ||||||
BTS Group AB, Class B |
1,100 | 28,868 | ||||||
Bureau Veritas SA |
4,005 | 99,236 | ||||||
Danel Adir Yeoshua Ltd.(a) |
220 | 25,629 | ||||||
dip Corp. |
1,400 | 39,277 | ||||||
DKSH Holding AG |
660 | 47,583 | ||||||
Experian plc |
14,883 | 475,340 | ||||||
Funai Soken Holdings, Inc.(a) |
2,700 | 48,193 | ||||||
GlobalData plc |
2,508 | 32,702 | ||||||
Hays plc |
34,264 | 43,355 |
Investments | Shares | Value | ||||||
Professional Services – (continued) | ||||||||
Insource Co. Ltd. |
1,900 | $ | 38,541 | |||||
Intertek Group plc |
2,214 | 93,144 | ||||||
Intertrust NV* (b) |
6,642 | 131,030 | ||||||
IPH Ltd.(a) |
13,904 | 88,376 | ||||||
JAC Recruitment Co. Ltd. |
1,300 | 22,128 | ||||||
Meitec Corp. |
2,400 | 40,513 | ||||||
Nihon M&A Center Holdings, Inc. |
4,800 | 54,351 | ||||||
Nomura Co. Ltd. |
6,000 | 43,960 | ||||||
Outsourcing, Inc.(a) |
32,800 | 257,086 | ||||||
Pagegroup plc |
101,311 | 492,473 | ||||||
Pasona Group, Inc. |
6,000 | 82,834 | ||||||
Persol Holdings Co. Ltd. |
4,200 | 84,376 | ||||||
Randstad NV(a) |
2,419 | 120,593 | ||||||
Recruit Holdings Co. Ltd. |
24,100 | 744,232 | ||||||
RELX plc |
30,340 | 817,757 | ||||||
RWS Holdings plc |
15,666 | 55,229 | ||||||
SGS SA (Registered) |
82 | 181,002 | ||||||
SmartGroup Corp. Ltd. |
7,766 | 24,433 | ||||||
SMS Co. Ltd. |
2,000 | 46,019 | ||||||
S-Pool, Inc. |
4,400 | 28,211 | ||||||
Synergie SE |
1,512 | 40,871 | ||||||
TechnoPro Holdings, Inc.(a) |
1,100 | 26,235 | ||||||
Teleperformance |
861 | 230,868 | ||||||
Thomson Reuters Corp.(a) |
2,337 | 248,237 | ||||||
Tinexta Spa |
1,056 | 21,291 | ||||||
UT Group Co. Ltd. |
2,000 | 32,738 | ||||||
Weathernews, Inc. |
500 | 26,104 | ||||||
Wolters Kluwer NV |
3,545 | 376,823 | ||||||
5,972,188 | ||||||||
Real Estate Management & Development – 2.0% | ||||||||
ADLER Group SA* (a) (b) |
27,258 | 40,465 | ||||||
Aedas Homes SA(b) |
6,437 | 83,597 | ||||||
Aeon Mall Co. Ltd. |
1,990 | 21,649 | ||||||
AFI Properties Ltd. |
165 | 4,969 | ||||||
Africa Israel Residences Ltd.(a) |
1,386 | 55,920 | ||||||
Airport City Ltd.* |
1,928 | 32,074 | ||||||
Allreal Holding AG (Registered) |
366 | 52,445 | ||||||
Alony Hetz Properties & Investments Ltd. |
2,596 | 30,611 | ||||||
Altus Group Ltd. |
2,578 | 91,493 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 221 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Amot Investments Ltd. |
5,448 | $ | 33,126 | |||||
Aroundtown SA(a) |
20,160 | 40,010 | ||||||
Atrium Ljungberg AB, Class B |
792 | 10,586 | ||||||
Aura Investments Ltd. |
20,958 | 37,218 | ||||||
Azrieli Group Ltd. |
532 | 39,619 | ||||||
Big Shopping Centers Ltd. |
16 | 1,803 | ||||||
Blue Square Real Estate Ltd.(a) |
2,296 | 153,241 | ||||||
Bukit Sembawang Estates Ltd. |
57,400 | 164,684 | ||||||
CA Immobilien Anlagen AG(a) |
572 | 18,063 | ||||||
Capitaland Investment Ltd. |
42,131 | 89,615 | ||||||
Castellum AB(a) |
4,830 | 55,204 | ||||||
Catena AB |
924 | 31,390 | ||||||
Cibus Nordic Real Estate AB |
3,432 | 46,850 | ||||||
City Developments Ltd. |
9,400 | 50,683 | ||||||
Citycon OYJ* (a) |
21,894 | 136,434 | ||||||
CK Asset Holdings Ltd. |
41,000 | 226,680 | ||||||
CLS Holdings plc, REIT |
14,403 | 23,780 | ||||||
Colliers International Group, Inc.(a) |
748 | 70,114 | ||||||
Corem Property Group AB, Class B |
19,888 | 12,382 | ||||||
Daito Trust Construction Co. Ltd. |
1,600 | 158,348 | ||||||
Daiwa House Industry Co. Ltd. |
15,300 | 310,045 | ||||||
Deutsche EuroShop AG |
4,410 | 94,582 | ||||||
Deutsche Wohnen SE |
1,012 | 20,424 | ||||||
DIC Asset AG |
3,740 | 25,801 | ||||||
Dios Fastigheter AB |
7,480 | 49,109 | ||||||
DREAM Unlimited Corp., Class A(a) |
1,584 | 28,857 | ||||||
Entra ASA(b) |
2,068 | 18,807 | ||||||
ESR Group Ltd.(a) (b) |
49,200 | 83,986 | ||||||
Fabege AB |
5,412 | 39,268 | ||||||
Fastighets AB Balder, Class B* |
12,348 | 46,367 | ||||||
FastPartner AB, Class A |
3,124 | 19,083 | ||||||
FirstService Corp. |
676 | 84,403 | ||||||
Gav-Yam Lands Corp. Ltd. |
593 | 5,055 | ||||||
Grainger plc |
11,088 | 28,979 | ||||||
Grand City Properties SA |
2,508 | 24,416 | ||||||
Great Eagle Holdings Ltd.(a) |
83,451 | 153,085 | ||||||
GuocoLand Ltd. |
100,000 | 109,533 | ||||||
Hang Lung Group Ltd. |
238,000 | 308,648 | ||||||
Hang Lung Properties Ltd. |
44,000 | 55,323 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Heba Fastighets AB, Class B |
5,280 | $ | 15,075 | |||||
Heiwa Real Estate Co. Ltd. |
1,300 | 36,122 | ||||||
Henderson Land Development Co. Ltd. |
33,239 | 81,384 | ||||||
Hiag Immobilien Holding AG |
355 | 28,592 | ||||||
Ho Bee Land Ltd. |
76,800 | 125,368 | ||||||
Hufvudstaden AB, Class A |
2,610 | 31,083 | ||||||
Hulic Co. Ltd. |
13,400 | 97,366 | ||||||
Hysan Development Co. Ltd. |
19,000 | 41,438 | ||||||
Ichigo, Inc. |
5,500 | 12,396 | ||||||
Immobel SA(a) |
1,554 | 63,586 | ||||||
Intershop Holding AG |
76 | 46,249 | ||||||
Israel Canada T.R Ltd.(a) |
7,168 | 20,774 | ||||||
Isras Investment Co. Ltd. |
136 | 25,716 | ||||||
IWG plc* |
18,668 | 28,371 | ||||||
Jeudan A/S |
560 | 19,850 | ||||||
K Wah International Holdings Ltd. |
546,089 | 153,047 | ||||||
Katitas Co. Ltd.(a) |
1,100 | 24,681 | ||||||
Kerry Properties Ltd. |
16,500 | 26,106 | ||||||
K-fast Holding AB* (b) |
5,148 | 10,575 | ||||||
Kojamo OYJ(a) |
1,980 | 25,773 | ||||||
Kowloon Development Co. Ltd. |
123,000 | 109,370 | ||||||
LEG Immobilien SE |
1,353 | 88,418 | ||||||
Lendlease Corp. Ltd.(a) |
14,582 | 81,030 | ||||||
Levinstein Properties Ltd.(a) |
2,814 | 73,374 | ||||||
Lifestyle Communities Ltd.(a) |
5,148 | 57,773 | ||||||
Mega Or Holdings Ltd., REIT |
1,085 | 31,691 | ||||||
Melisron Ltd. |
460 | 34,296 | ||||||
Mitsubishi Estate Co. Ltd. |
20,500 | 258,327 | ||||||
Mitsui Fudosan Co. Ltd. |
20,500 | 393,008 | ||||||
Mivne Real Estate KD Ltd.(a) |
14,248 | 44,531 | ||||||
Mobimo Holding AG (Registered) |
352 | 82,130 | ||||||
Morguard Corp. |
1,353 | 111,083 | ||||||
New World Development Co. Ltd. |
33,590 | 68,722 | ||||||
Nexity SA(a) |
17,179 | 344,331 | ||||||
Nomura Real Estate Holdings, Inc. |
1,400 | 31,695 | ||||||
Norstar Holdings, Inc.(a) |
8,106 | 42,286 | ||||||
NP3 Fastigheter AB |
396 | 6,293 | ||||||
Nyfosa AB |
2,684 | 16,018 |
See Accompanying Notes to the Financial Statements.
222 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
OUE Ltd. |
90,000 | $ | 80,136 | |||||
PATRIZIA SE |
3,248 | 23,852 | ||||||
Platzer Fastigheter Holding AB, Class B |
3,080 | 19,092 | ||||||
Prashkovsky Investments and Construction Ltd.(a) |
1,672 | 40,352 | ||||||
Property & Building Corp. Ltd.* (a) |
128 | 9,532 | ||||||
PSP Swiss Property AG (Registered) |
531 | 56,774 | ||||||
Relo Group, Inc. |
2,270 | 32,102 | ||||||
Sagax AB, Class B |
2,420 | 44,588 | ||||||
Samhallsbyggnadsbolaget i Norden AB(a) |
22,748 | 31,249 | ||||||
SAMTY Co. Ltd.(a) |
12,600 | 199,298 | ||||||
Savills plc |
7,602 | 72,252 | ||||||
Singapore Land Group Ltd. |
5,656 | 8,673 | ||||||
Sino Land Co. Ltd. |
69,289 | 74,057 | ||||||
Sirius Real Estate Ltd. |
65,648 | 53,287 | ||||||
Starts Corp., Inc. |
12,300 | 217,641 | ||||||
StorageVault Canada, Inc. |
7,644 | 35,024 | ||||||
Sumitomo Realty & Development Co. Ltd. |
11,200 | 257,328 | ||||||
Summit Real Estate Holdings Ltd. |
2,418 | 33,884 | ||||||
Sun Hung Kai Properties Ltd. |
34,500 | 371,157 | ||||||
Swire Pacific Ltd., Class A |
3,500 | 23,163 | ||||||
Swire Properties Ltd. |
24,800 | 47,642 | ||||||
Swiss Prime Site AG (Registered) |
1,227 | 99,067 | ||||||
TAG Immobilien AG |
5,115 | 32,077 | ||||||
Tokyo Tatemono Co. Ltd. |
5,200 | 71,684 | ||||||
Tokyu Fudosan Holdings Corp. |
11,200 | 56,891 | ||||||
Tricon Residential, Inc. |
4,830 | 40,650 | ||||||
UOL Group Ltd. |
6,799 | 29,741 | ||||||
VGP NV(a) |
176 | 13,359 | ||||||
VIB Vermoegen AG |
271 | 5,196 | ||||||
Vonovia SE |
11,477 | 254,090 | ||||||
Wallenstam AB, Class B |
8,888 | 31,352 | ||||||
Watkin Jones plc |
13,596 | 14,652 | ||||||
Wharf Real Estate Investment Co. Ltd. |
25,000 | 98,569 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Wihlborgs Fastigheter AB |
7,304 | $ | 47,854 | |||||
Wing Tai Holdings Ltd. |
24,000 | 25,779 | ||||||
YH Dimri Construction & Development Ltd.(a) |
452 | 27,612 | ||||||
Zensun Enterprises Ltd.* (a) |
144,000 | 21,279 | ||||||
8,707,687 | ||||||||
Road & Rail – 1.5% | ||||||||
Aurizon Holdings Ltd. |
31,840 | 73,704 | ||||||
Canadian National Railway Co. |
9,061 | 1,072,135 | ||||||
Canadian Pacific Railway Ltd. |
13,940 | 1,037,899 | ||||||
Central Japan Railway Co. |
2,900 | 336,856 | ||||||
ComfortDelGro Corp. Ltd. |
18,400 | 16,513 | ||||||
East Japan Railway Co. |
5,500 | 297,507 | ||||||
Firstgroup plc |
31,646 | 38,330 | ||||||
Fukuyama Transporting Co. Ltd. |
13,300 | 290,366 | ||||||
Hankyu Hanshin Holdings, Inc. |
4,300 | 127,726 | ||||||
Keikyu Corp. |
5,700 | 58,559 | ||||||
Keio Corp. |
1,800 | 63,215 | ||||||
Keisei Electric Railway Co. Ltd. |
2,900 | 77,068 | ||||||
Kelsian Group Ltd.(a) |
13,288 | 39,681 | ||||||
Kintetsu Group Holdings Co. Ltd. |
3,900 | 131,981 | ||||||
Kyushu Railway Co. |
2,100 | 43,940 | ||||||
MTR Corp. Ltd. |
25,264 | 111,196 | ||||||
Mullen Group Ltd.(a) |
30,709 | 308,205 | ||||||
Nagoya Railroad Co. Ltd. |
4,400 | 67,435 | ||||||
Nankai Electric Railway Co. Ltd. |
3,000 | 60,753 | ||||||
National Express Group plc* |
17,136 | 33,382 | ||||||
Nikkon Holdings Co. Ltd. |
23,100 | 361,338 | ||||||
Nishi-Nippon Railroad Co. Ltd. |
5,200 | 102,121 | ||||||
NTG Nordic Transport Group A/S* |
792 | 25,760 | ||||||
Odakyu Electric Railway Co. Ltd. |
4,600 | 54,748 | ||||||
Redde Northgate plc |
73,144 | 280,434 | ||||||
Sakai Moving Service Co. Ltd. |
2,900 | 91,896 | ||||||
Sankyu, Inc. |
1,333 | 39,864 | ||||||
Seibu Holdings, Inc. |
2,600 | 23,300 | ||||||
Seino Holdings Co. Ltd. |
52,300 | 402,538 | ||||||
Senko Group Holdings Co. Ltd.(a) |
48,700 | 325,682 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 223 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Road & Rail – (continued) | ||||||||
Sixt SE |
308 | $ | 28,919 | |||||
Sixt SE (Preference) |
298 | 17,377 | ||||||
Sotetsu Holdings, Inc.(a) |
4,200 | 63,663 | ||||||
Stef SA |
1,230 | 97,983 | ||||||
TFI International, Inc.(a) |
1,517 | 137,915 | ||||||
Tobu Railway Co. Ltd. |
4,000 | 92,576 | ||||||
Tokyu Corp. |
8,300 | 95,824 | ||||||
Trancom Co. Ltd.(a) |
1,600 | 82,134 | ||||||
West Japan Railway Co. |
4,100 | 162,775 | ||||||
6,773,298 | ||||||||
Semiconductors & Semiconductor Equipment – 1.6% | ||||||||
Advantest Corp.(a) |
3,100 | 163,932 | ||||||
AEM Holdings Ltd. |
13,200 | 29,943 | ||||||
AIXTRON SE |
3,108 | 76,457 | ||||||
Alphawave IP Group plc* (a) |
19,492 | 25,315 | ||||||
ams-OSRAM AG* |
5,984 | 33,940 | ||||||
ASM International NV |
656 | 145,751 | ||||||
ASML Holding NV |
5,945 | 2,808,604 | ||||||
ASMPT Ltd. |
5,000 | 27,516 | ||||||
BE Semiconductor Industries NV |
1,470 | 75,143 | ||||||
Disco Corp.(a) |
400 | 96,074 | ||||||
Ferrotec Holdings Corp.(a) |
14,300 | 242,639 | ||||||
Infineon Technologies AG |
20,131 | 490,249 | ||||||
Japan Material Co. Ltd. |
3,900 | 51,480 | ||||||
Lasertec Corp.(a) |
1,300 | 186,208 | ||||||
Megachips Corp. |
1,000 | 17,169 | ||||||
Melexis NV |
495 | 34,148 | ||||||
Meyer Burger Technology AG* (a) |
160,380 | 76,925 | ||||||
Mimasu Semiconductor Industry Co. Ltd. |
4,600 | 71,305 | ||||||
Nordic Semiconductor ASA* |
3,828 | 54,087 | ||||||
Nova Ltd.* |
352 | 25,954 | ||||||
Optorun Co. Ltd. |
2,900 | 41,285 | ||||||
REC Silicon ASA* |
22,352 | 42,955 | ||||||
Renesas Electronics Corp.* |
22,900 | 192,047 | ||||||
Rohm Co. Ltd. |
1,600 | 112,706 | ||||||
Sanken Electric Co. Ltd. |
1,600 | 55,007 | ||||||
SCREEN Holdings Co. Ltd.(a) |
1,100 | 60,611 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Shinko Electric Industries Co. Ltd.(a) |
1,400 | $ | 33,767 | |||||
Siltronic AG |
405 | 25,238 | ||||||
SMA Solar Technology AG* |
1,100 | 53,315 | ||||||
SOITEC* |
528 | 67,814 | ||||||
STMicroelectronics NV |
10,168 | 317,565 | ||||||
SUMCO Corp. |
5,700 | 72,441 | ||||||
Tokyo Electron Ltd. |
2,500 | 664,211 | ||||||
Tokyo Seimitsu Co. Ltd. |
13,900 | 419,427 | ||||||
Tower Semiconductor Ltd.* |
2,139 | 91,893 | ||||||
Tri Chemical Laboratories, Inc. |
1,800 | 26,994 | ||||||
Ulvac, Inc. |
1,000 | 39,560 | ||||||
X-Fab Silicon Foundries SE* (b) |
4,400 | 22,809 | ||||||
7,072,484 | ||||||||
Software – 1.2% | ||||||||
Altium Ltd.(a) |
1,716 | 38,855 | ||||||
Asseco Poland SA |
3,212 | 46,281 | ||||||
Atoss Software AG |
176 | 21,465 | ||||||
AVEVA Group plc |
2,332 | 83,770 | ||||||
BlackBerry Ltd.* |
8,682 | 40,290 | ||||||
BrainChip Holdings Ltd.* (a) |
89,100 | 36,749 | ||||||
Bytes Technology Group plc |
10,736 | 44,400 | ||||||
Constellation Software, Inc. |
287 | 414,470 | ||||||
Dassault Systemes SE |
10,549 | 353,966 | ||||||
Descartes Systems Group, Inc. (The)* |
1,375 | 94,755 | ||||||
Digital Arts, Inc. |
1,000 | 42,184 | ||||||
Docebo, Inc.* (a) |
1,100 | 31,942 | ||||||
Dye & Durham Ltd. |
3,388 | 37,431 | ||||||
Enghouse Systems Ltd. |
2,552 | 56,670 | ||||||
FD Technologies plc* |
132 | 2,043 | ||||||
Freee KK* (a) |
1,200 | 23,494 | ||||||
Fuji Soft, Inc. |
700 | 38,147 | ||||||
GB Group plc |
17,999 | 78,789 | ||||||
Hansen Technologies Ltd. |
15,092 | 47,577 | ||||||
Hilan Ltd. |
865 | 45,517 | ||||||
IRESS Ltd.(a) |
6,556 | 42,551 | ||||||
Kape Technologies plc* |
8,536 | 21,621 | ||||||
Kinaxis, Inc.* (a) |
520 | 55,433 | ||||||
Learning Technologies Group plc |
20,240 | 25,074 | ||||||
Lectra |
1,188 | 38,043 |
See Accompanying Notes to the Financial Statements.
224 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Lightspeed Commerce, Inc.* (a) |
2,184 | $ | 41,805 | |||||
LINK Mobility Group Holding ASA* |
24,552 | 19,104 | ||||||
Magic Software Enterprises Ltd. |
2,288 | 35,742 | ||||||
Micro Focus International plc |
126,854 | 759,185 | ||||||
Money Forward, Inc.* (a) |
1,100 | 31,379 | ||||||
Nemetschek SE |
884 | 42,252 | ||||||
Netcompany Group A/S* (a) (b) |
440 | 15,106 | ||||||
Nice Ltd.* |
985 | 187,456 | ||||||
Open Text Corp. |
4,346 | 125,724 | ||||||
Oracle Corp. Japan |
800 | 42,736 | ||||||
QT Group OYJ* (a) |
308 | 13,169 | ||||||
Rakus Co. Ltd. |
1,600 | 17,902 | ||||||
Sage Group plc (The) |
15,375 | 128,658 | ||||||
SAP SE |
15,785 | 1,523,760 | ||||||
SimCorp A/S |
660 | 39,429 | ||||||
Sinch AB* (a) (b) |
7,462 | 17,554 | ||||||
Software AG |
2,352 | 51,560 | ||||||
Systena Corp. |
7,600 | 21,322 | ||||||
TeamViewer AG* (c) |
8,274 | 79,601 | ||||||
Technology One Ltd. |
7,884 | 60,749 | ||||||
Temenos AG (Registered) |
1,160 | 69,200 | ||||||
TomTom NV* (a) |
6,776 | 53,074 | ||||||
Trend Micro, Inc.(a) |
2,500 | 126,316 | ||||||
Truecaller AB, Class B* (a) |
3,168 | 11,591 | ||||||
Vitec Software Group AB, Class B |
2,332 | 85,595 | ||||||
Vobile Group Ltd.* (a) (b) |
46,000 | 10,958 | ||||||
WiseTech Global Ltd. |
3,239 | 120,460 | ||||||
WithSecure OYJ* |
8,140 | 13,162 | ||||||
5,506,066 | ||||||||
Specialty Retail – 1.5% | ||||||||
ABC-Mart, Inc. |
700 | 31,224 | ||||||
Accent Group Ltd.(a) |
96,883 | 91,689 | ||||||
Alpen Co. Ltd. |
4,600 | 62,670 | ||||||
Aritzia, Inc.* (a) |
1,716 | 66,474 | ||||||
Auto Partner SA(b) |
11,382 | 27,672 | ||||||
Autobacs Seven Co. Ltd.(a) |
26,700 | 254,183 | ||||||
Bic Camera, Inc.(a) |
8,300 | 64,609 | ||||||
Bilia AB, Class A |
22,427 | 237,453 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
CECONOMY AG |
60,147 | $ | 98,027 | |||||
City Chic Collective Ltd.* (a) |
15,004 | 12,521 | ||||||
Clas Ohlson AB, Class B |
5,460 | 36,440 | ||||||
Currys plc(a) |
335,380 | 251,763 | ||||||
DCM Holdings Co. Ltd. |
39,300 | 306,447 | ||||||
Delek Automotive Systems Ltd. |
2,436 | 31,513 | ||||||
Dufry AG (Registered)* |
1,188 | 39,186 | ||||||
Dunelm Group plc |
2,604 | 25,994 | ||||||
Eagers Automotive Ltd.(a) |
4,180 | 33,117 | ||||||
EDION Corp.(a) |
28,700 | 228,040 | ||||||
Fast Retailing Co. Ltd. |
1,000 | 558,348 | ||||||
Fenix Outdoor International AG(a) |
369 | 29,986 | ||||||
Fielmann AG |
607 | 19,354 | ||||||
Fnac Darty SA |
7,093 | 219,284 | ||||||
Fox Wizel Ltd. |
123 | 15,063 | ||||||
Frasers Group plc* |
4,620 | 34,442 | ||||||
H & M Hennes & Mauritz AB, Class B(a) |
10,660 | 107,271 | ||||||
Hikari Tsushin, Inc.(a) |
400 | 48,360 | ||||||
Hornbach Holding AG & Co. KGaA |
3,239 | 220,887 | ||||||
IDOM, Inc. |
19,600 | 98,241 | ||||||
Industria de Diseno Textil SA(a) |
17,220 | 390,425 | ||||||
JB Hi-Fi Ltd.(a) |
1,722 | 47,250 | ||||||
JD Sports Fashion plc |
44,135 | 49,514 | ||||||
JINS Holdings, Inc. |
900 | 27,127 | ||||||
Joyful Honda Co. Ltd.(a) |
18,400 | 224,561 | ||||||
Kid ASA(a) (b) |
11,439 | 85,708 | ||||||
Kingfisher plc |
41,944 | 105,712 | ||||||
Kohnan Shoji Co. Ltd.(a) |
9,700 | 203,286 | ||||||
Komeri Co. Ltd. |
12,300 | 214,744 | ||||||
K’s Holdings Corp.(a) |
6,100 | 47,853 | ||||||
Leon’s Furniture Ltd. |
9,471 | 118,383 | ||||||
Lovisa Holdings Ltd. |
6,068 | 94,676 | ||||||
Luk Fook Holdings International Ltd. |
97,672 | 212,270 | ||||||
Maisons du Monde SA(b) |
11,521 | 112,957 | ||||||
MEKO AB |
14,965 | 141,248 | ||||||
Musti Group OYJ* |
2,068 | 38,875 | ||||||
Nextage Co. Ltd.(a) |
3,200 | 61,789 | ||||||
Nick Scali Ltd.(a) |
6,996 | 45,049 | ||||||
Nishimatsuya Chain Co. Ltd.(a) |
13,600 | 124,896 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 225 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Nitori Holdings Co. Ltd. |
1,600 | $ | 145,699 | |||||
Nojima Corp. |
24,600 | 205,228 | ||||||
Pet Valu Holdings Ltd. |
1,716 | 46,157 | ||||||
Pets at Home Group plc |
19,950 | 66,106 | ||||||
Premier Investments Ltd.(a) |
3,036 | 48,592 | ||||||
Sanrio Co. Ltd. |
2,200 | 58,687 | ||||||
Shimamura Co. Ltd. |
500 | 40,468 | ||||||
Super Retail Group Ltd.(a) |
5,324 | 34,997 | ||||||
T-Gaia Corp.(a) |
9,200 | 102,439 | ||||||
USS Co. Ltd. |
1,500 | 22,676 | ||||||
Watches of Switzerland Group plc* (c) |
3,344 | 29,819 | ||||||
WH Smith plc* |
1,408 | 19,080 | ||||||
Yamada Holdings Co. Ltd. |
17,300 | 55,752 | ||||||
Yellow Hat Ltd. |
12,500 | 150,032 | ||||||
6,622,313 | ||||||||
Technology Hardware, Storage & Peripherals – 0.5% | ||||||||
Brother Industries Ltd. |
3,800 | 64,707 | ||||||
Canon, Inc.(a) |
20,500 | 435,005 | ||||||
Eizo Corp. |
5,600 | 136,388 | ||||||
Elecom Co. Ltd. |
1,600 | 14,855 | ||||||
FUJIFILM Holdings Corp. |
6,400 | 293,616 | ||||||
Konica Minolta, Inc.(a) |
157,700 | 480,628 | ||||||
Logitech International SA (Registered) |
2,899 | 144,407 | ||||||
MCJ Co. Ltd.(a) |
24,600 | 155,576 | ||||||
Melco Holdings, Inc. |
2,900 | 60,971 | ||||||
Ricoh Co. Ltd. |
16,800 | 123,201 | ||||||
Riso Kagaku Corp.(a) |
1,700 | 27,072 | ||||||
Seiko Epson Corp. |
8,200 | 111,772 | ||||||
Toshiba TEC Corp. |
1,100 | 28,530 | ||||||
Wacom Co. Ltd. |
8,800 | 38,306 | ||||||
2,115,034 | ||||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||
adidas AG |
2,460 | 240,654 | ||||||
Asics Corp. |
3,400 | 52,246 | ||||||
Brunello Cucinelli SpA |
660 | 38,258 | ||||||
Burberry Group plc |
7,175 | 149,936 | ||||||
Canada Goose Holdings, Inc.* |
2,464 | 40,264 | ||||||
Chow Sang Sang Holdings International Ltd. |
143,000 | 131,891 |
Investments | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Cie Financiere Richemont SA (Registered) |
7,995 | $ | 782,444 | |||||
Coats Group plc |
98,856 | 68,860 | ||||||
Crystal International Group Ltd.(b) |
127,500 | 32,485 | ||||||
Delta Galil Industries Ltd. |
378 | 17,184 | ||||||
Descente Ltd. |
1,200 | 28,903 | ||||||
Dr. Martens plc |
8,536 | 24,452 | ||||||
Gildan Activewear, Inc. |
2,703 | 85,189 | ||||||
Goldwin, Inc. |
1,200 | 62,812 | ||||||
Hermes International |
533 | 690,359 | ||||||
HUGO BOSS AG |
1,232 | 56,791 | ||||||
Japan Wool Textile Co. Ltd. (The)(a) |
22,900 | 153,607 | ||||||
Kering SA |
1,025 | 469,755 | ||||||
LPP SA |
24 | 41,699 | ||||||
LVMH Moet Hennessy Louis Vuitton SE |
3,895 | 2,459,909 | ||||||
Marimekko OYJ |
2,420 | 21,837 | ||||||
Moncler SpA |
3,444 | 148,715 | ||||||
New Wave Group AB, Class B |
2,552 | 35,449 | ||||||
Pandora A/S |
1,722 | 90,780 | ||||||
Puma SE |
1,640 | 72,632 | ||||||
Samsonite International SA* (a) (b) |
36,900 | 79,348 | ||||||
Seiren Co. Ltd.(a) |
3,600 | 56,506 | ||||||
Stella International Holdings Ltd. |
144,000 | 139,417 | ||||||
Swatch Group AG (The) |
451 | 101,579 | ||||||
Swatch Group AG (The) (Registered) |
792 | 33,113 | ||||||
Tod’s SpA* |
245 | 7,642 | ||||||
Wacoal Holdings Corp. |
3,900 | 62,842 | ||||||
Yue Yuen Industrial Holdings Ltd. |
246,000 | 250,079 | ||||||
6,727,637 | ||||||||
Thrifts & Mortgage Finance – 0.4% | ||||||||
Aareal Bank AG |
2,352 | 76,758 | ||||||
Deutsche Pfandbriefbank AG(b) |
46,002 | 343,042 | ||||||
EQB, Inc.(a) |
6,724 | 237,993 | ||||||
First National Financial Corp. |
1,452 | 36,405 |
See Accompanying Notes to the Financial Statements.
226 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Thrifts & Mortgage Finance – (continued) | ||||||||
Genworth Mortgage Insurance Australia Ltd. |
128,822 | $ | 223,237 | |||||
Home Capital Group, Inc.(a) |
14,309 | 276,309 | ||||||
Liberty Financial Group Ltd.(a) (b) |
27,280 | 62,799 | ||||||
Mortgage Advice Bureau Holdings Ltd. |
2,596 | 19,249 | ||||||
OSB Group plc |
13,068 | 62,410 | ||||||
Paragon Banking Group plc |
80,155 | 394,986 | ||||||
Resimac Group Ltd.(a) |
26,481 | 15,155 | ||||||
1,748,343 | ||||||||
Tobacco – 0.7% | ||||||||
British American Tobacco plc |
47,232 | 1,867,157 | ||||||
Imperial Brands plc |
20,459 | 500,318 | ||||||
Japan Tobacco, Inc. |
24,600 | 407,807 | ||||||
Scandinavian Tobacco Group A/S(a) (b) |
17,589 | 294,919 | ||||||
Swedish Match AB |
25,379 | 260,899 | ||||||
3,331,100 | ||||||||
Trading Companies & Distributors – 2.0% | ||||||||
AddTech AB, Class B |
4,180 | 50,536 | ||||||
Alligo AB, Class B |
3,780 | 27,879 | ||||||
Ashtead Group plc |
6,601 | 345,803 | ||||||
BayWa AG |
336 | 15,160 | ||||||
Beijer Ref AB |
4,576 | 70,935 | ||||||
Bossard Holding AG (Registered), Class A |
220 | 43,703 | ||||||
Brenntag SE |
2,055 | 124,788 | ||||||
Bufab AB |
968 | 18,264 | ||||||
Bunzl plc |
5,576 | 182,390 | ||||||
Diploma plc |
1,364 | 39,041 | ||||||
Ferguson plc |
3,567 | 390,563 | ||||||
Finning International, Inc. |
2,562 | 54,412 | ||||||
Grafton Group plc |
5,016 | 39,849 | ||||||
Hanwa Co. Ltd. |
15,100 | 365,728 | ||||||
Howden Joinery Group plc |
11,508 | 68,104 | ||||||
IMCD NV |
984 | 127,694 | ||||||
Inaba Denki Sangyo Co. Ltd. |
19,900 | 371,933 | ||||||
Inabata & Co. Ltd.(a) |
12,500 | 206,630 | ||||||
ITOCHU Corp.(a) |
30,200 | 782,049 | ||||||
Kanamoto Co. Ltd.(a) |
9,323 | 134,731 |
Investments | Shares | Value | ||||||
Trading Companies & Distributors – (continued) | ||||||||
Kanematsu Corp. |
28,700 | $ | 284,036 | |||||
Kloeckner & Co. SE |
28,167 | 220,901 | ||||||
Marubeni Corp. |
35,800 | 313,839 | ||||||
Mitsubishi Corp. |
30,300 | 821,740 | ||||||
Mitsui & Co. Ltd. |
35,500 | 786,500 | ||||||
MonotaRO Co. Ltd. |
5,600 | 85,450 | ||||||
Nagase & Co. Ltd.(a) |
39,100 | 533,487 | ||||||
Nippon Steel Trading Corp. |
4,700 | 161,900 | ||||||
Nishio Rent All Co. Ltd. |
8,500 | 171,104 | ||||||
OEM International AB, Class B |
25,625 | 128,004 | ||||||
Reece Ltd.(a) |
5,999 | 59,574 | ||||||
Rexel SA |
4,641 | 83,046 | ||||||
Richelieu Hardware Ltd. |
2,684 | 71,958 | ||||||
RS GROUP plc |
5,808 | 64,095 | ||||||
Russel Metals, Inc.(a) |
21,812 | 451,255 | ||||||
Scope Metals Group Ltd.(a) |
1,968 | 88,684 | ||||||
Seven Group Holdings Ltd. |
3,036 | 35,605 | ||||||
Sojitz Corp. |
2,699 | 39,840 | ||||||
Sumitomo Corp. |
26,800 | 341,773 | ||||||
Theme International Holdings Ltd.* (a) |
1,640,000 | 156,691 | ||||||
Thermador Groupe(a) |
396 | 32,994 | ||||||
Toromont Industries Ltd. |
1,599 | 122,734 | ||||||
Toyota Tsusho Corp. |
5,000 | 168,197 | ||||||
Travis Perkins plc |
5,412 | 51,270 | ||||||
Trusco Nakayama Corp. |
1,800 | 24,160 | ||||||
Yamazen Corp. |
18,600 | 115,753 | ||||||
Yellow Cake plc* (b) |
7,602 | 37,513 | ||||||
8,912,295 | ||||||||
Transportation Infrastructure – 0.4% | ||||||||
Aena SME SA* (b) |
1,025 | 120,706 | ||||||
Aeroports de Paris* |
555 | 75,177 | ||||||
Atlantia SpA |
6,273 | 139,994 | ||||||
Atlas Arteria Ltd. |
13,979 | 58,907 | ||||||
Auckland International Airport Ltd.* |
22,332 | 99,898 | ||||||
Dalrymple Bay Infrastructure Ltd.(a) |
60,564 | 92,559 | ||||||
Enav SpA(b) |
12,657 | 48,912 | ||||||
Flughafen Zurich AG (Registered)* |
320 | 49,691 | ||||||
Fraport AG Frankfurt Airport Services Worldwide* |
890 | 34,341 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 227 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Getlink SE |
6,888 | $ | 109,128 | |||||
Hamburger Hafen und Logistik AG |
1,220 | 14,301 | ||||||
Japan Airport Terminal Co. Ltd.* |
1,200 | 51,509 | ||||||
Kamigumi Co. Ltd. |
3,100 | 58,982 | ||||||
Mitsubishi Logistics Corp. |
1,700 | 37,343 | ||||||
Port of Tauranga Ltd. |
5,225 | 19,700 | ||||||
Qube Holdings Ltd. |
36,652 | 63,749 | ||||||
SATS Ltd.* |
19,000 | 36,655 | ||||||
Sumitomo Warehouse Co. Ltd. (The)(a) |
24,600 | 334,157 | ||||||
Transurban Group |
46,879 | 397,492 | ||||||
Westshore Terminals Investment Corp. |
1,647 | 29,425 | ||||||
1,872,626 | ||||||||
Water Utilities – 0.1% | ||||||||
Pennon Group plc |
2,970 | 28,638 | ||||||
Severn Trent plc |
3,854 | 111,066 | ||||||
United Utilities Group plc |
10,455 | 113,079 | ||||||
252,783 | ||||||||
Wireless Telecommunication Services – 0.8% | ||||||||
Airtel Africa plc(b) |
34,804 | 45,321 | ||||||
Freenet AG |
2,198 | 43,252 | ||||||
KDDI Corp. |
33,900 | 1,002,392 | ||||||
Millicom International Cellular SA, SDR* |
3,036 | 32,914 | ||||||
Okinawa Cellular Telephone Co. |
8,200 | 155,190 | ||||||
Orange Belgium SA* |
1,188 | 20,125 | ||||||
Partner Communications Co. Ltd.* |
6,160 | 46,644 | ||||||
Rogers Communications, Inc., Class B |
4,797 | 199,434 | ||||||
SoftBank Corp. |
57,500 | 566,934 | ||||||
SoftBank Group Corp.(a) |
17,782 | 765,666 | ||||||
Tele2 AB, Class B |
8,052 | 65,958 | ||||||
Vodafone Group plc |
578,920 | 677,471 | ||||||
3,621,301 | ||||||||
Total
Common Stocks (Cost $462,207,051) |
|
435,422,178 |
Investments | Shares | Value | ||||||
CLOSED END FUNDS – 0.0%(f) | ||||||||
Independent Power and Renewable
Electricity Producers – 0.0%(f) |
||||||||
Renewables Infrastructure Group Ltd. (The) (Cost $50,126) |
34,059 | $ | 51,056 | |||||
Number of Rights |
||||||||
RIGHTS – 0.0% | ||||||||
Real Estate Management & Development – 0.0% | ||||||||
S
IMMO AG, expiring 12/31/2022, price 1.00 EUR* ‡ |
2,564 | — | ||||||
Number of Warrants |
||||||||
WARRANTS – 0.0% | ||||||||
Construction & Engineering – 0.0% | ||||||||
Webuild
SpA, expiring 8/2/2030* ‡ (a) |
10,785 | — | ||||||
Principal Amount |
||||||||
SECURITIES LENDING REINVESTMENTS(g) – 1.7% | ||||||||
REPURCHASE AGREEMENTS – 1.7% | ||||||||
Citigroup Global Markets, Inc., 3.00%, dated 10/31/2022, due 11/1/2022, repurchase price $4,212,026, collateralized by various U.S. Treasury Securities, ranging from 0.75% – 5.50%, maturing 7/15/2028 –1/15/2029; total market value $4,241,589 |
$ | 4,211,675 | 4,211,675 |
See Accompanying Notes to the Financial Statements.
228 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Principal Amount |
Value | ||||||
SECURITIES LENDING REINVESTMENTS – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
National Bank of Canada, 3.07%, dated 10/31/2022, due 11/7/2022, repurchase price $3,001,791, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 3.13%, maturing 12/1/2022 – 8/15/2052; total market value $3,041,106 |
$ | 3,000,000 | $ | 3,000,000 | ||||
TD Prime Services LLC, 3.15%, dated 10/31/2022, due 11/1/2022, repurchase price $379,427, collateralized by various Common Stocks; total market value $414,926 |
379,394 | 379,394 | ||||||
7,591,069 | ||||||||
Total
Securities Lending Reinvestments (Cost $7,591,069) |
|
7,591,069 | ||||||
Total
Investments – 99.2% (Cost $469,848,246) |
|
443,064,303 | ||||||
Other assets less liabilities – 0.8% |
|
3,689,877 | ||||||
Net Assets –100.0% |
|
$ | 446,754,180 |
* |
Non-income producing security. |
‡ |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(a) |
The security or a portion of this security is on loan at October 31, 2022. The total value of securities on loan at October 31, 2022 was $52,637,337 collateralized in the form of cash with a value of $7,591,069 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $36,234,872 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.63%, and maturity dates ranging from November 10, 2022 – May 15, 2052 and $13,323,302 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from November 22, 2022 – June 30, 2120; a total value of $57,149,242. |
(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 exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
Amount represents less than one share. |
(e) |
Amount less than one dollar. |
(f) |
Represents less than 0.05% of net assets. |
(g) |
The security was purchased with cash collateral held from securities on loan at October 31, 2022. The total value of securities purchased was $7,591,069. |
Percentages shown are based on Net Assets.
Abbreviations
ADR – American Depositary Receipt
CHDI – Clearing House Electronic Subregister System (CHESS) Depository Interest
CVA – Dutch Certification
OYJ – Public Limited Company
Preference A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SCA – Limited partnership with share capital
SDR – Swedish Depositary Receipt
As of October 31, 2022, 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 |
$ | 55,570,251 | ||
Aggregate gross unrealized depreciation |
(85,682,456 | ) | ||
Net unrealized depreciation |
$ | (30,112,205 | ) | |
Federal income tax cost |
$ | 473,187,236 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 229 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Futures Contracts
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following open futures contracts as of October 31, 2022:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Appreciation/ (Depreciation)* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index |
86 | 12/16/2022 | EUR | $ | 3,075,231 | $ | 60,380 | |||||||||||||
FTSE 100 Index |
27 | 12/16/2022 | GBP | 2,209,470 | (63,678 | ) | ||||||||||||||
Nikkei 225 Index |
31 | 12/08/2022 | JPY | 2,870,892 | 32,157 | |||||||||||||||
S&P/TSX 60 Index |
10 | 12/15/2022 | CAD | 1,726,623 | 31,256 | |||||||||||||||
SPI 200 Index |
10 | 12/15/2022 | AUD | 1,096,017 | 2,103 | |||||||||||||||
$ | 62,218 |
* |
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 Markets ex-US Factor Tilt Index Fund had the following outstanding contracts as of October 31, 2022:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||
GBP |
823,203 | Bank of New York | USD | 939,015 | 12/21/2022 | $ | 10,447 | |||||||||||||||
USD |
345,031 | Citibank NA | CHF | 330,788 | 12/21/2022 | 12,446 | ||||||||||||||||
USD |
24,111 | Morgan Stanley | DKK | 178,253 | 12/21/2022 | 343 | ||||||||||||||||
USD |
737,252 | Bank of Montreal | JPY | 105,750,000 | 12/21/2022 | 21,128 | ||||||||||||||||
USD |
422,945 | Citibank NA | NZD | 711,055 | 12/21/2022 | 9,532 | ||||||||||||||||
Total unrealized appreciation |
|
$ | 53,896 | |||||||||||||||||||
AUD |
1,388,017 | Morgan Stanley | USD | 929,337 | 12/21/2022 | $ | (40,306 | ) | ||||||||||||||
CAD |
1,004,150 | Toronto-Dominion Bank (The) | USD | 754,364 | 12/21/2022 | (17,775 | ) | |||||||||||||||
EUR |
467,687 | Morgan Stanley | USD | 470,236 | 12/21/2022 | (6,045 | ) | |||||||||||||||
HKD |
362,598 | Goldman Sachs & Co. | USD | 46,267 | 12/21/2022 | (46 | ) | |||||||||||||||
ILS |
366,970 | BNP Paribas SA | USD | 107,172 | 12/21/2022 | (2,464 | ) | |||||||||||||||
JPY |
100,430,889 | Bank of New York | USD | 708,013 | 12/21/2022 | (27,909 | ) | |||||||||||||||
NOK |
1,450,557 | Morgan Stanley | USD | 141,154 | 12/21/2022 | (1,386 | ) | |||||||||||||||
SEK |
4,244,576 | Morgan Stanley | USD | 394,731 | 12/21/2022 | (8,967 | ) | |||||||||||||||
SGD |
143,900 | JPMorgan Chase Bank | USD | 102,208 | 12/21/2022 | (488 | ) | |||||||||||||||
Total unrealized depreciation |
|
$ | (105,386 | ) | ||||||||||||||||||
Net unrealized depreciation |
|
$ | (51,490 | ) |
See Accompanying Notes to the Financial Statements.
230 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
DKK – Danish Krone
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
ILS – Israeli Shekel
JPY – Japanese Yen
NOK – Norwegian Krone
NZD – New Zealand Dollar
SEK – Swedish Krona
SGD – Singapore Dollar
USD – US Dollar
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of October 31, 2022:
Australia |
6.0 | % | ||
Austria |
0.2 | |||
Belgium |
0.9 | |||
Canada |
11.2 | |||
Denmark |
1.9 | |||
Finland |
0.8 | |||
France |
7.4 | |||
Germany |
5.2 | |||
Hong Kong |
2.1 | |||
Ireland |
0.2 | |||
Israel |
1.1 | |||
Italy |
2.2 | |||
Japan |
27.7 | |||
Netherlands |
2.8 | |||
New Zealand |
0.3 | |||
Norway |
1.3 | |||
Poland |
0.4 | |||
Portugal |
0.3 | |||
Singapore |
1.4 | |||
Spain |
2.0 | |||
Sweden |
3.1 | |||
Switzerland |
5.8 | |||
United Kingdom |
13.1 | |||
United States |
0.1 | |||
Other1 |
2.5 | |||
100.0 | % |
1 |
Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 231 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Security Type | % of Net Assets | |||
Common Stocks |
97.5 | % | ||
Closed End Funds |
0.0 | † | ||
Rights |
— | |||
Warrants |
— | |||
Securities Lending Reinvestments |
1.7 | |||
Others(1) |
0.8 | |||
100.0 | % |
† |
Amount represents less than 0.05%. |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
232 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund
October 31, 2022
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.5% | ||||||||
Aerospace & Defense – 0.2% | ||||||||
AECC Aero-Engine Control Co. Ltd., Class A |
5,000 | $ | 20,552 | |||||
AECC Aviation Power Co. Ltd., Class A |
4,700 | 31,322 | ||||||
Aselsan Elektronik Sanayi ve Ticaret A/S |
6,972 | 12,075 | ||||||
AVIC Electromechanical Systems Co. Ltd., Class A |
5,300 | 8,496 | ||||||
AviChina Industry & Technology Co. Ltd., Class H(a) |
81,000 | 35,496 | ||||||
Bharat Dynamics Ltd.(b) |
1,587 | 18,371 | ||||||
Bharat Electronics Ltd. |
72,030 | 92,977 | ||||||
Embraer SA* |
16,500 | 43,237 | ||||||
Hanwha Aerospace Co. Ltd. |
882 | 41,052 | ||||||
Hanwha Systems Co. Ltd. |
689 | 5,393 | ||||||
Hindustan Aeronautics Ltd.(b) |
1,708 | 52,204 | ||||||
Korea Aerospace Industries Ltd. |
1,576 | 52,388 | ||||||
Kuang-Chi Technologies Co. Ltd., Class A* |
5,600 | 13,274 | ||||||
LIG Nex1 Co. Ltd. |
250 | 17,814 | ||||||
United Aircraft Corp. PJSC* ‡ |
25,155,036 | — | ||||||
444,651 | ||||||||
Air Freight & Logistics – 0.4% | ||||||||
Agility Public Warehousing Co. KSC |
27,701 | 70,113 | ||||||
Allcargo Logistics Ltd. |
1,900 | 9,933 | ||||||
Aramex PJSC |
32,940 | 32,554 | ||||||
Blue Dart Express Ltd. |
265 | 24,289 | ||||||
Dimerco Express Corp. |
49,000 | 94,130 | ||||||
Hanjin Transportation Co. Ltd. |
2,940 | 39,834 | ||||||
Hyundai Glovis Co. Ltd. |
686 | 83,797 | ||||||
JD Logistics, Inc.* (b) |
29,400 | 41,048 | ||||||
Kerry Express Thailand PCL, NVDR* |
38,500 | 17,803 | ||||||
Kerry TJ Logistics Co. Ltd. |
8,000 | 8,665 | ||||||
SF Holding Co. Ltd., Class A |
7,100 | 46,947 | ||||||
Sindhu Trade Links Ltd.* |
153,489 | 36,436 | ||||||
Sinotrans Ltd., Class A |
23,500 | 11,430 |
Investments | Shares | Value | ||||||
Air Freight & Logistics – (continued) | ||||||||
Sinotrans Ltd., Class H |
83,000 | $ | 20,195 | |||||
T3EX Global Holdings Corp. |
49,000 | 92,305 | ||||||
YTO Express Group Co. Ltd., Class A |
4,700 | 12,145 | ||||||
Yunda Holding Co. Ltd., Class A |
5,800 | 10,474 | ||||||
ZTO Express Cayman, Inc. |
7,350 | 123,501 | ||||||
775,599 | ||||||||
Airlines – 0.4% | ||||||||
Aeroflot PJSC* ‡ |
74,029 | — | ||||||
Air Arabia PJSC |
100,646 | 55,899 | ||||||
Azul SA (Preference)* |
11,700 | 35,966 | ||||||
China Airlines Ltd. |
61,000 | 32,088 | ||||||
China Eastern Airlines Corp. Ltd., Class A* |
14,300 | 9,405 | ||||||
China Eastern Airlines Corp. Ltd., Class H* (a) |
46,000 | 15,177 | ||||||
China Southern Airlines Co. Ltd., Class A* |
14,100 | 12,480 | ||||||
China Southern Airlines Co. Ltd., Class H* (a) |
24,000 | 12,382 | ||||||
Controladora Vuela Cia de Aviacion SAB de CV, Class A* (a) |
36,400 | 30,882 | ||||||
Eva Airways Corp. |
52,798 | 38,342 | ||||||
Gol Linhas Aereas Inteligentes SA (Preference)* |
10,600 | 19,413 | ||||||
Hanjin Kal Corp.* |
273 | 7,628 | ||||||
InterGlobe Aviation Ltd.* (b) |
1,875 | 40,357 | ||||||
Jazeera Airways Co. KSCP |
2,338 | 12,613 | ||||||
Jeju Air Co. Ltd.* |
1,962 | 13,732 | ||||||
Jin Air Co. Ltd.* |
658 | 6,074 | ||||||
Korean Air Lines Co. Ltd.* |
3,339 | 54,148 | ||||||
Pegasus Hava Tasimaciligi A/S* |
14,431 | 248,392 | ||||||
Turk Hava Yollari AO* |
19,635 | 106,920 | ||||||
751,898 | ||||||||
Auto Components – 1.0% | ||||||||
Apollo Tyres Ltd. |
11,319 | 39,750 | ||||||
Asahi India Glass Ltd. |
4,900 | 36,455 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 233 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Balkrishna Industries Ltd. |
1,715 | $ | 40,665 | |||||
Bharat Forge Ltd. |
5,771 | 58,158 | ||||||
Bosch Ltd. |
204 | 40,635 | ||||||
Cheng Shin Rubber Industry Co. Ltd. |
49,000 | 49,118 | ||||||
DN Automotive Corp. |
1,519 | 61,850 | ||||||
Endurance Technologies Ltd.(b) |
350 | 5,726 | ||||||
Exide Industries Ltd. |
15,150 | 30,336 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class A |
4,800 | 21,986 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class H(b) |
8,400 | 30,123 | ||||||
Hankook & Co. Co Ltd. |
907 | 8,182 | ||||||
Hankook Tire & Technology Co. Ltd. |
2,492 | 63,942 | ||||||
Hanon Systems |
2,756 | 15,091 | ||||||
HL Mando Co. Ltd. |
1,089 | 37,805 | ||||||
Hota Industrial Manufacturing Co. Ltd. |
12,134 | 28,167 | ||||||
Huayu Automotive Systems Co. Ltd., Class A |
9,400 | 21,598 | ||||||
Hyundai Mobis Co. Ltd. |
1,989 | 305,796 | ||||||
Hyundai Wia Corp. |
583 | 25,007 | ||||||
Iljin Hysolus Co. Ltd.* |
383 | 8,201 | ||||||
Kenda Rubber Industrial Co. Ltd. |
37,000 | 35,079 | ||||||
Kordsa Teknik Tekstil A/S |
22,834 | 78,679 | ||||||
Kumho Tire Co., Inc.* |
1 | 2 | ||||||
Minth Group Ltd. |
12,000 | 23,695 | ||||||
Motherson Sumi Wiring India Ltd. |
21,519 | 22,747 | ||||||
MRF Ltd. |
38 | 41,668 | ||||||
Myoung Shin Industrial Co. Ltd.* |
1,250 | 15,137 | ||||||
Nan Kang Rubber Tire Co. Ltd.* |
14,000 | 14,837 | ||||||
Nexen Tire Corp. |
13,049 | 70,721 | ||||||
Nexteer Automotive Group Ltd.(a) |
343,000 | 185,704 | ||||||
Ningbo Tuopu Group Co. Ltd., Class A |
1,200 | 10,654 | ||||||
Samvardhana Motherson International Ltd. |
39,996 | 31,165 |
Investments | Shares | Value | ||||||
Auto Components – (continued) | ||||||||
Sebang Global Battery Co. Ltd. |
81 | $ | 2,215 | |||||
Shandong Linglong Tyre Co. Ltd., Class A |
5,500 | 12,336 | ||||||
SL Corp. |
550 | 11,873 | ||||||
SNT Motiv Co. Ltd. |
3,038 | 94,161 | ||||||
Sona Blw Precision Forgings Ltd.(b) |
2,550 | 14,337 | ||||||
Sundram Fasteners Ltd. |
2,951 | 33,384 | ||||||
Tianneng Power International Ltd.(a) |
262,000 | 251,992 | ||||||
Tong Yang Industry Co. Ltd. |
19,000 | 26,682 | ||||||
Tube Investments of India Ltd. |
1,715 | 56,835 | ||||||
Tung Thih Electronic Co. Ltd. |
1,000 | 4,159 | ||||||
UNO Minda Ltd. |
3,740 | 24,249 | ||||||
Weifu High-Technology Group Co. Ltd., Class A |
4,700 | 11,083 | ||||||
ZF Commercial Vehicle Control Systems India Ltd. |
250 | 30,892 | ||||||
2,032,877 | ||||||||
Automobiles – 2.2% | ||||||||
Astra International Tbk. PT |
627,200 | 267,407 | ||||||
Bajaj Auto Ltd. |
1,151 | 51,056 | ||||||
BYD Co. Ltd., Class A |
2,600 | 87,872 | ||||||
BYD Co. Ltd., Class H |
15,000 | 335,739 | ||||||
China Motor Corp. |
5,400 | 6,997 | ||||||
Chongqing Changan Automobile Co. Ltd., Class A |
17,108 | 26,464 | ||||||
Chongqing Changan Automobile Co. Ltd., Class B |
6,890 | 2,984 | ||||||
Dongfeng Motor Group Co. Ltd., Class H |
976,000 | 441,384 | ||||||
DRB-Hicom Bhd. |
352,800 | 99,990 | ||||||
Eicher Motors Ltd. |
2,470 | 114,894 | ||||||
Ford Otomotiv Sanayi A/S |
1,736 | 33,875 | ||||||
Geely Automobile Holdings Ltd.(a) |
98,000 | 105,368 | ||||||
Great Wall Motor Co. Ltd., Class A |
4,700 | 18,778 | ||||||
Great Wall Motor Co. Ltd., Class H |
49,000 | 53,495 | ||||||
Guangzhou Automobile Group Co. Ltd., Class A |
13,500 | 20,957 |
See Accompanying Notes to the Financial Statements.
234 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Automobiles – (continued) | ||||||||
Guangzhou Automobile Group Co. Ltd., Class H |
64,000 | $ | 38,971 | |||||
Hero MotoCorp Ltd. |
2,107 | 68,136 | ||||||
Hyundai Motor Co. |
4,116 | 475,329 | ||||||
Hyundai Motor Co. (2nd Preference) |
1,127 | 63,136 | ||||||
Hyundai Motor Co. (3rd Preference) |
54 | 2,855 | ||||||
Hyundai Motor Co. (Preference) |
676 | 37,206 | ||||||
Kia Corp. |
7,894 | 367,421 | ||||||
Li Auto, Inc., Class A* (a) |
19,600 | 133,707 | ||||||
Mahindra & Mahindra Ltd. |
15,778 | 257,053 | ||||||
Maruti Suzuki India Ltd. |
2,205 | 253,793 | ||||||
NIO, Inc., Class A* |
24,500 | 233,457 | ||||||
Oriental Holdings Bhd. |
8,500 | 11,973 | ||||||
SAIC Motor Corp. Ltd., Class A |
24,500 | 46,156 | ||||||
Sanyang Motor Co. Ltd. |
236,000 | 265,864 | ||||||
Tata Motors Ltd.* |
31,767 | 158,398 | ||||||
Tata Motors Ltd., Class A* |
8,230 | 23,384 | ||||||
Tofas Turk Otomobil Fabrikasi A/S |
3,233 | 17,101 | ||||||
TVS Motor Co. Ltd. |
3,493 | 48,360 | ||||||
UMW Holdings Bhd. |
216,600 | 153,471 | ||||||
XPeng, Inc., Class A* (a) |
19,600 | 63,420 | ||||||
Yadea Group Holdings Ltd.(b) |
16,000 | 24,418 | ||||||
Yulon Motor Co. Ltd. |
26,986 | 38,190 | ||||||
4,449,059 | ||||||||
Banks – 13.9% | ||||||||
Absa Group Ltd. |
23,863 | 259,360 | ||||||
Abu Dhabi Commercial Bank PJSC |
83,928 | 215,929 | ||||||
Abu Dhabi Islamic Bank PJSC |
23,694 | 61,282 | ||||||
AFFIN Bank Bhd. |
31,038 | 14,705 | ||||||
Agricultural Bank of China Ltd., Class A |
393,100 | 148,653 | ||||||
Agricultural Bank of China Ltd., Class H |
915,000 | 261,101 | ||||||
Ahli United Bank KSCP |
8,800 | 7,585 | ||||||
Akbank TAS, ADR |
46,845 | 71,439 | ||||||
Al Ahli Bank of Kuwait KSCP |
9,527 | 10,181 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Al Rajhi Bank* |
34,104 | $ | 773,286 | |||||
Alinma Bank |
15,813 | 157,812 | ||||||
Alliance Bank Malaysia Bhd. |
27,600 | 21,599 | ||||||
Alpha Services and Holdings SA* |
63,014 | 58,419 | ||||||
AMMB Holdings Bhd. |
73,500 | 63,582 | ||||||
AU Small Finance Bank Ltd.(b) |
4,998 | 35,596 | ||||||
Axis Bank Ltd. |
37,583 | 411,346 | ||||||
Banco Bradesco SA* |
45,600 | 144,606 | ||||||
Banco Bradesco SA (Preference) |
161,942 | 612,925 | ||||||
Banco Davivienda SA (Preference) |
43,022 | 229,065 | ||||||
Banco de Bogota SA |
3,242 | 17,262 | ||||||
Banco de Chile |
1,373,176 | 125,545 | ||||||
Banco de Credito e Inversiones SA |
1,670 | 46,518 | ||||||
Banco del Bajio SA(a) (b) |
28,373 | 79,877 | ||||||
Banco do Brasil SA |
44,100 | 311,131 | ||||||
Banco do Estado do Rio Grande do Sul SA (Preference), Class B |
73,500 | 163,466 | ||||||
Banco Pan SA (Preference) |
10,600 | 15,615 | ||||||
Banco Santander Chile |
1,891,547 | 67,740 | ||||||
Bancolombia SA |
8,820 | 64,120 | ||||||
Bancolombia SA (Preference) |
13,747 | 87,974 | ||||||
Bandhan Bank Ltd.* (b) |
12,381 | 35,680 | ||||||
Bangkok Bank PCL, NVDR |
15,000 | 57,344 | ||||||
Bank Al Habib Ltd. |
403,172 | 97,072 | ||||||
Bank AlBilad* |
8,364 | 112,854 | ||||||
Bank Al-Jazira |
6,066 | 37,743 | ||||||
Bank Central Asia Tbk. PT |
960,400 | 541,851 | ||||||
Bank Ina Perdana PT* |
70,500 | 17,718 | ||||||
Bank Jago Tbk. PT* |
75,000 | 24,523 | ||||||
Bank Mandiri Persero Tbk. PT |
646,800 | 437,489 | ||||||
Bank Negara Indonesia Persero Tbk. PT |
230,300 | 138,793 | ||||||
Bank OCBC Nisp Tbk. PT |
1,269,100 | 61,024 | ||||||
Bank of Ayudhya PCL, NVDR |
70,000 | 58,395 | ||||||
Bank of Baroda |
31,698 | 56,559 | ||||||
Bank of Beijing Co. Ltd., Class A |
70,000 | 38,747 | ||||||
Bank of Changsha Co. Ltd., Class A |
9,400 | 8,294 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 235 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Bank of Chengdu Co. Ltd., Class A |
10,600 | $ | 19,781 | |||||
Bank of China Ltd., Class A |
200,900 | 82,853 | ||||||
Bank of China Ltd., Class H |
2,352,000 | 758,048 | ||||||
Bank of Chongqing Co. Ltd., Class H |
220,500 | 99,999 | ||||||
Bank of Communications Co. Ltd., Class A |
102,100 | 62,251 | ||||||
Bank of Communications Co. Ltd., Class H |
638,000 | 311,285 | ||||||
Bank of Hangzhou Co. Ltd., Class A |
18,800 | 31,193 | ||||||
Bank of India |
5,936 | 4,321 | ||||||
Bank of Jiangsu Co. Ltd., Class A |
42,580 | 40,371 | ||||||
Bank of Nanjing Co. Ltd., Class A |
31,200 | 44,116 | ||||||
Bank of Ningbo Co. Ltd., Class A |
16,350 | 53,226 | ||||||
Bank of Qingdao Co. Ltd., Class H(b) |
220,500 | 68,539 | ||||||
Bank of Shanghai Co. Ltd., Class A |
45,000 | 34,404 | ||||||
Bank of the Philippine Islands |
23,710 | 39,278 | ||||||
Bank of Zhengzhou Co. Ltd., Class A* |
17,490 | 5,464 | ||||||
Bank Pan Indonesia Tbk. PT |
71,500 | 11,002 | ||||||
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk. PT |
2,146,200 | 189,199 | ||||||
Bank Pembangunan Daerah Jawa Timur Tbk. PT |
918,000 | 41,493 | ||||||
Bank Rakyat Indonesia Persero Tbk. PT |
1,185,800 | 353,516 | ||||||
Bank Tabungan Negara Persero Tbk. PT |
1,700,000 | 168,392 | ||||||
Banque Saudi Fransi |
10,613 | 122,016 | ||||||
BDO Unibank, Inc. |
51,940 | 114,098 | ||||||
BNK Financial Group, Inc. |
10,830 | 48,735 | ||||||
BOC Hong Kong Holdings Ltd. |
98,000 | 304,617 | ||||||
Boubyan Bank KSCP |
19,922 | 52,997 | ||||||
Burgan Bank SAK |
30,004 | 21,117 | ||||||
Canara Bank |
14,791 | 51,890 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Capitec Bank Holdings Ltd. |
1,688 | $ | 174,570 | |||||
Chang Hwa Commercial Bank Ltd. |
114,919 | 59,203 | ||||||
China Bohai Bank Co. Ltd., Class H(a) (b) |
1,245,500 | 153,905 | ||||||
China CITIC Bank Corp. Ltd., Class H |
245,000 | 92,384 | ||||||
China Construction Bank Corp., Class A |
28,200 | 20,632 | ||||||
China Construction Bank Corp., Class H |
2,891,000 | 1,535,758 | ||||||
China Everbright Bank Co. Ltd., Class A |
117,600 | 43,826 | ||||||
China Everbright Bank Co. Ltd., Class H |
53,000 | 13,706 | ||||||
China Merchants Bank Co. Ltd., Class A |
49,000 | 180,059 | ||||||
China Merchants Bank Co. Ltd., Class H |
98,000 | 322,095 | ||||||
China Minsheng Banking Corp. Ltd., Class A |
83,300 | 37,663 | ||||||
China Minsheng Banking Corp. Ltd., Class H(a) |
196,000 | 56,928 | ||||||
China Zheshang Bank Co. Ltd., Class A* |
47,000 | 17,773 | ||||||
China Zheshang Bank Co. Ltd., Class H* (a) |
53,000 | 18,297 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class A |
18,800 | 8,990 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H |
94,000 | 28,500 | ||||||
CIMB Group Holdings Bhd. |
208,040 | 242,889 | ||||||
City Union Bank Ltd. |
9,675 | 21,740 | ||||||
Commercial Bank PSQC (The) |
59,417 | 102,690 | ||||||
Commercial International Bank Egypt SAE |
81,677 | 109,579 | ||||||
Credicorp Ltd. |
2,009 | 294,037 | ||||||
Credit Agricole Egypt SAE |
236,999 | 67,910 | ||||||
Credit Bank of Moscow PJSC* ‡ |
229,590 | — | ||||||
CTBC Financial Holding Co. Ltd. |
588,000 | 372,262 | ||||||
DGB Financial Group, Inc. |
7,200 | 34,321 | ||||||
Doha Bank QPSC |
591,986 | 358,597 |
See Accompanying Notes to the Financial Statements.
236 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Dubai Islamic Bank PJSC |
84,425 | $ | 133,773 | |||||
E.Sun Financial Holding Co. Ltd. |
245,179 | 176,527 | ||||||
Emirates NBD Bank PJSC |
72,520 | 261,605 | ||||||
Eurobank Ergasias Services and Holdings SA* |
81,242 | 80,296 | ||||||
Faisal Islamic Bank of Egypt |
46,688 | 44,447 | ||||||
Far Eastern International Bank |
65,617 | 21,586 | ||||||
Federal Bank Ltd. |
30,426 | 48,335 | ||||||
First Abu Dhabi Bank PJSC |
77,031 | 375,398 | ||||||
First Financial Holding Co. Ltd. |
190,172 | 146,071 | ||||||
Grupo Aval Acciones y Valores SA (Preference) |
142,166 | 15,721 | ||||||
Grupo Bolivar SA |
1,518 | 17,377 | ||||||
Grupo Elektra SAB de CV |
980 | 49,083 | ||||||
Grupo Financiero Banorte SAB de CV, Class O |
73,500 | 596,361 | ||||||
Grupo Financiero Inbursa SAB de CV, Class O* (a) |
28,946 | 53,330 | ||||||
Gulf Bank KSCP |
44,835 | 49,648 | ||||||
Habib Bank Ltd. |
304,952 | 96,491 | ||||||
Haci Omer Sabanci Holding A/S |
31,455 | 56,712 | ||||||
Hana Financial Group, Inc. |
8,330 | 241,225 | ||||||
Hong Leong Bank Bhd. |
14,300 | 63,999 | ||||||
Hong Leong Financial Group Bhd. |
9,800 | 39,548 | ||||||
Hua Nan Financial Holdings Co. Ltd. |
161,065 | 105,219 | ||||||
Huaxia Bank Co. Ltd., Class A |
47,000 | 30,846 | ||||||
ICICI Bank Ltd. |
87,563 | 961,233 | ||||||
IDFC First Bank Ltd.* |
61,957 | 41,990 | ||||||
Indian Bank |
7,425 | 22,774 | ||||||
IndusInd Bank Ltd. |
9,523 | 131,454 | ||||||
Industrial & Commercial Bank of China Ltd., Class A |
254,800 | 144,880 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
2,107,000 | 915,288 | ||||||
Industrial Bank Co. Ltd., Class A |
53,900 | 110,996 | ||||||
Industrial Bank of Korea |
9,751 | 71,535 | ||||||
Intercorp Financial Services, Inc. |
1,040 | 25,480 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Itau CorpBanca Chile SA |
10,585,840 | $ | 20,637 | |||||
Itau Unibanco Holding SA (Preference)* |
142,100 | 823,258 | ||||||
Itausa SA |
26,514 | 54,673 | ||||||
Itausa SA (Preference) |
144,300 | 295,351 | ||||||
JB Financial Group Co. Ltd. |
3,370 | 16,987 | ||||||
Jiangsu Changshu Rural Commercial Bank Co. Ltd., Class A |
6,700 | 6,408 | ||||||
KakaoBank Corp.* |
5,243 | 62,940 | ||||||
Kasikornbank PCL, NVDR |
35,800 | 137,331 | ||||||
KB Financial Group, Inc. |
11,662 | 393,386 | ||||||
Kiatnakin Phatra Bank PCL, NVDR |
9,800 | 18,797 | ||||||
King’s Town Bank Co. Ltd. |
24,000 | 22,866 | ||||||
Komercni Banka A/S |
1,272 | 36,485 | ||||||
Kotak Mahindra Bank Ltd. |
18,369 | 422,058 | ||||||
Krung Thai Bank PCL, NVDR |
112,400 | 51,682 | ||||||
Kuwait Finance House KSCP |
133,770 | 349,810 | ||||||
Kuwait International Bank KSCP |
26,655 | 16,264 | ||||||
Kuwait Projects Co. Holding KSCP |
22,000 | 8,381 | ||||||
Malayan Banking Bhd. |
209,700 | 380,990 | ||||||
Malaysia Building Society Bhd. |
119,217 | 14,877 | ||||||
Masraf Al Rayan QSC |
108,432 | 114,245 | ||||||
MCB Bank Ltd. |
151,508 | 83,641 | ||||||
Mega Financial Holding Co. Ltd. |
186,775 | 173,313 | ||||||
Metropolitan Bank & Trust Co. |
48,620 | 43,376 | ||||||
Moneta Money Bank A/S(b) |
17,993 | 52,518 | ||||||
National Bank of Greece SA* |
13,715 | 49,748 | ||||||
National Bank of Kuwait SAKP |
125,370 | 436,316 | ||||||
Nedbank Group Ltd. |
13,981 | 165,513 | ||||||
O-Bank Co. Ltd. |
106,000 | 26,120 | ||||||
OTP Bank Nyrt. |
6,713 | 146,101 | ||||||
Ping An Bank Co. Ltd., Class A |
47,100 | 66,727 | ||||||
Piraeus Financial Holdings SA* |
28,658 | 35,349 | ||||||
Postal Savings Bank of China Co. Ltd., Class A |
97,999 | 52,097 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(a) (b) |
196,000 | 90,886 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 237 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Public Bank Bhd. |
256,600 | $ | 242,598 | |||||
Punjab National Bank |
43,248 | 22,283 | ||||||
Qatar International Islamic Bank QSC |
14,896 | 47,325 | ||||||
Qatar Islamic Bank SAQ |
26,407 | 176,856 | ||||||
Qatar National Bank QPSC |
77,939 | 426,746 | ||||||
Qingdao Rural Commercial Bank Corp., Class A |
18,800 | 7,135 | ||||||
RBL Bank Ltd.* (b) |
168,340 | 274,847 | ||||||
Regional SAB de CV |
5,500 | 38,366 | ||||||
RHB Bank Bhd. |
101,959 | 123,351 | ||||||
Riyad Bank |
24,217 | 231,694 | ||||||
Rizal Commercial Banking Corp. |
275,000 | 107,722 | ||||||
Saudi British Bank (The) |
6,958 | 80,551 | ||||||
Saudi Investment Bank (The) |
8,484 | 40,957 | ||||||
Saudi National Bank (The) |
37,599 | 594,371 | ||||||
Sberbank of Russia PJSC* ‡ |
369,050 | — | ||||||
Sberbank of Russia PJSC (Preference)* ‡ |
39,708 | — | ||||||
SCB X PCL, NVDR |
30,500 | 84,945 | ||||||
Security Bank Corp. |
116,810 | 174,157 | ||||||
Shanghai Commercial & Savings Bank Ltd. (The) |
126,000 | 181,438 | ||||||
Shanghai Pudong Development Bank Co. Ltd., Class A |
73,500 | 66,868 | ||||||
Shinhan Financial Group Co. Ltd. |
15,386 | 392,089 | ||||||
SinoPac Financial Holdings Co. Ltd. |
346,640 | 173,199 | ||||||
Standard Bank Group Ltd. |
40,755 | 380,661 | ||||||
State Bank of India |
51,437 | 356,553 | ||||||
Sunrisemezz plc* |
4,094 | 331 | ||||||
Taichung Commercial Bank Co. Ltd. |
50,000 | 19,474 | ||||||
Taishin Financial Holding Co. Ltd. |
355,315 | 146,107 | ||||||
Taiwan Business Bank |
90,107 | 33,417 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. |
196,000 | 152,068 | ||||||
Thanachart Capital PCL, NVDR |
19,300 | 20,284 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Tisco Financial Group PCL, NVDR |
11,200 | $ | 28,250 | |||||
TMBThanachart Bank PCL, NVDR |
1,288,600 | 46,046 | ||||||
Turkiye Garanti Bankasi A/S |
13,849 | 17,495 | ||||||
Turkiye Halk Bankasi A/S* |
237,748 | 105,308 | ||||||
Turkiye Is Bankasi A/S, Class C |
117,781 | 59,008 | ||||||
Turkiye Vakiflar Bankasi TAO, Class D* |
19,050 | 8,776 | ||||||
Union Bank of India Ltd. |
27,150 | 17,679 | ||||||
Union Bank of Taiwan |
50,000 | 23,508 | ||||||
Union Bank of the Philippines |
7,980 | 10,603 | ||||||
United Bank Ltd. |
193,914 | 94,284 | ||||||
VTB Bank PJSC* ‡ |
136,511,531 | — | ||||||
Warba Bank KSCP* |
13,340 | 10,379 | ||||||
Woori Financial Group, Inc. |
17,885 | 147,530 | ||||||
Yapi ve Kredi Bankasi A/S |
76,200 | 37,725 | ||||||
Yes Bank Ltd.* |
38,361 | 7,206 | ||||||
28,772,869 | ||||||||
Beverages – 1.3% | ||||||||
Ambev SA |
77,700 | 236,924 | ||||||
Anadolu Efes Biracilik ve Malt Sanayii A/S |
5,350 | 13,793 | ||||||
Anhui Gujing Distillery Co. Ltd., Class A |
700 | 18,900 | ||||||
Anhui Gujing Distillery Co. Ltd., Class B |
2,200 | 25,932 | ||||||
Arca Continental SAB de CV |
14,700 | 120,191 | ||||||
Becle SAB de CV(a) |
10,700 | 22,592 | ||||||
Carabao Group PCL, NVDR |
11,600 | 27,507 | ||||||
China Foods Ltd. |
294,000 | 74,906 | ||||||
China Resources Beer Holdings Co. Ltd. |
27,107 | 127,768 | ||||||
Chongqing Brewery Co. Ltd., Class A |
600 | 7,187 | ||||||
Coca-Cola Femsa SAB de CV |
9,800 | 61,622 | ||||||
Coca-Cola Icecek A/S |
2,875 | 26,582 | ||||||
Distell Group Holdings Ltd.* |
2,280 | 21,541 | ||||||
Embotelladora Andina SA (Preference), Class B |
153,688 | 268,681 | ||||||
Emperador, Inc.* |
55,200 | 18,651 |
See Accompanying Notes to the Financial Statements.
238 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Beverages – (continued) | ||||||||
Fomento Economico Mexicano SAB de CV |
29,914 | $ | 214,352 | |||||
Fraser & Neave Holdings Bhd. |
3,700 | 16,074 | ||||||
Hebei Hengshui Laobaigan Liquor Co. Ltd., Class A |
2,300 | 6,690 | ||||||
Heineken Malaysia Bhd. |
3,800 | 18,566 | ||||||
Hite Jinro Co. Ltd. |
348 | 6,266 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A |
2,100 | 37,591 | ||||||
JiuGui Liquor Co. Ltd., Class A |
500 | 6,991 | ||||||
Kweichow Moutai Co. Ltd., Class A |
1,800 | 332,941 | ||||||
Lotte Chilsung Beverage Co. Ltd. |
150 | 14,795 | ||||||
Luzhou Laojiao Co. Ltd., Class A |
2,400 | 51,413 | ||||||
Nongfu Spring Co. Ltd., Class H(b) |
32,600 | 163,834 | ||||||
Osotspa PCL, NVDR |
31,700 | 22,072 | ||||||
Radico Khaitan Ltd. |
3,528 | 44,404 | ||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A |
1,960 | 62,404 | ||||||
Tsingtao Brewery Co. Ltd., Class A |
1,100 | 12,328 | ||||||
Tsingtao Brewery Co. Ltd., Class H |
10,000 | 70,065 | ||||||
United Breweries Ltd. |
1,379 | 27,535 | ||||||
United Spirits Ltd.* |
5,584 | 60,466 | ||||||
Varun Beverages Ltd. |
5,047 | 63,961 | ||||||
Vina Concha y Toro SA |
179,427 | 202,655 | ||||||
Wuliangye Yibin Co. Ltd., Class A |
4,900 | 89,627 | ||||||
2,597,807 | ||||||||
Biotechnology – 0.8% | ||||||||
3SBio, Inc.(b) |
294,000 | 207,489 | ||||||
ABLBio, Inc.* |
1,585 | 22,310 | ||||||
Adimmune Corp.* |
19,000 | 19,370 | ||||||
Akeso, Inc., Class B* (a) (b) |
17,000 | 68,218 | ||||||
Alphamab Oncology* (a) (b) |
24,000 | 16,846 | ||||||
Alteogen, Inc.* |
936 | 24,115 | ||||||
Amicogen, Inc.* |
514 | 6,856 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
BeiGene Ltd.* |
14,700 | $ | 185,392 | |||||
Beijing Tiantan Biological Products Corp. Ltd., Class A |
6,360 | 18,012 | ||||||
Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A |
1,015 | 17,456 | ||||||
Biocon Ltd. |
6,644 | 21,659 | ||||||
Bioneer Corp.* |
1,265 | 23,667 | ||||||
BNC Korea Co. Ltd.* |
2,035 | 7,586 | ||||||
Celltrion, Inc. |
1,703 | 229,545 | ||||||
Daan Gene Co. Ltd., Class A |
8,000 | 19,598 | ||||||
Eubiologics Co. Ltd.* |
935 | 6,827 | ||||||
GC Cell Corp.* |
3,365 | 106,777 | ||||||
GeneOne Life Science, Inc.* |
3,823 | 19,834 | ||||||
Genexine, Inc.* |
1,440 | 22,645 | ||||||
Green Cross Corp. |
163 | 14,590 | ||||||
Green Cross Holdings Corp. |
15,092 | 183,823 | ||||||
Helixmith Co. Ltd.* |
1,890 | 16,585 | ||||||
Hualan Biological Engineering, Inc., Class A |
5,300 | 12,875 | ||||||
Hugel, Inc.* |
126 | 9,889 | ||||||
I-Mab, ADR* |
742 | 2,753 | ||||||
InnoCare Pharma Ltd.* (a) (b) |
31,000 | 36,213 | ||||||
Innovent Biologics, Inc.* (a) (b) |
19,000 | 67,288 | ||||||
iNtRON Biotechnology, Inc.* |
1,643 | 10,208 | ||||||
Kintor Pharmaceutical Ltd.* (b) |
7,000 | 11,093 | ||||||
L&C Bio Co. Ltd. |
899 | 14,169 | ||||||
Medigen Vaccine Biologics Corp.* |
4,564 | 9,122 | ||||||
MedPacto, Inc.* |
235 | 3,811 | ||||||
Medytox, Inc. |
120 | 8,862 | ||||||
Naturecell Co. Ltd.* |
2,743 | 33,314 | ||||||
NKMax Co. Ltd.* |
1,797 | 16,905 | ||||||
OBI Pharma, Inc.* |
10,354 | 20,983 | ||||||
PharmaResearch Co. Ltd. |
349 | 15,068 | ||||||
Pharmicell Co. Ltd.* |
2,919 | 20,902 | ||||||
Prestige Biopharm Ltd., KDR* |
8,772 | 46,740 | ||||||
Seegene, Inc. |
1,378 | 27,764 | ||||||
Shanghai Junshi Biosciences Co. Ltd., Class A* |
1,113 | 10,836 | ||||||
Shanghai Junshi Biosciences Co. Ltd., Class H* (a) (b) |
2,200 | 7,693 | ||||||
Shanghai RAAS Blood Products Co. Ltd., Class A |
9,400 | 7,006 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 239 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
SK Bioscience Co. Ltd.* |
468 | $ | 24,838 | |||||
Tanvex BioPharma, Inc.* |
6,000 | 5,484 | ||||||
Vaxcell-Bio Therapeutics Co. Ltd.* |
371 | 9,441 | ||||||
Zai Lab Ltd.* |
13,300 | 30,633 | ||||||
Zhejiang Orient Gene Biotech Co. Ltd., Class A |
770 | 8,714 | ||||||
1,731,804 | ||||||||
Building Products – 0.3% | ||||||||
Astral Ltd. |
1,731 | 42,474 | ||||||
Beijing New Building Materials plc, Class A |
5,300 | 14,400 | ||||||
Blue Star Ltd. |
2,703 | 40,365 | ||||||
China Lesso Group Holdings Ltd. |
33,000 | 26,779 | ||||||
Kajaria Ceramics Ltd. |
1,150 | 15,021 | ||||||
KCC Glass Corp. |
4,410 | 119,813 | ||||||
Kyung Dong Navien Co. Ltd. |
2,850 | 68,927 | ||||||
Luoyang Glass Co. Ltd., Class H* (a) |
18,000 | 16,258 | ||||||
LX Hausys Ltd. |
88 | 1,989 | ||||||
Saudi Ceramic Co. |
935 | 10,302 | ||||||
Taiwan Glass Industry Corp. |
48,000 | 30,389 | ||||||
Xinyi Glass Holdings Ltd. |
80,000 | 102,932 | ||||||
Zhejiang Weixing New Building Materials Co. Ltd., Class A |
5,300 | 12,635 | ||||||
Zhuzhou Kibing Group Co. Ltd., Class A |
5,300 | 5,700 | ||||||
507,984 | ||||||||
Capital Markets – 1.8% | ||||||||
Aju IB Investment Co. Ltd. |
828 | 1,462 | ||||||
Angel One Ltd. |
1,600 | 30,978 | ||||||
B3 SA – Brasil Bolsa Balcao |
107,800 | 308,983 | ||||||
Banco BTG Pactual SA* |
19,600 | 108,099 | ||||||
Bangkok Commercial Asset Management PCL, NVDR |
26,500 | 10,653 | ||||||
Bolsa Mexicana de Valores SAB de CV |
10,400 | 18,904 | ||||||
Boursa Kuwait Securities Co. KPSC |
2,016 | 14,787 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Bursa Malaysia Bhd. |
8,000 | $ | 10,914 | |||||
Caitong Securities Co. Ltd., Class A |
12,220 | 11,971 | ||||||
Capital Securities Corp. |
79,000 | 24,517 | ||||||
Changjiang Securities Co. Ltd., Class A |
14,100 | 10,065 | ||||||
China Bills Finance Corp. |
53,000 | 23,356 | ||||||
China Cinda Asset Management Co. Ltd., Class H |
3,465,000 | 322,229 | ||||||
China Everbright Ltd.(a) |
350,000 | 184,590 | ||||||
China Galaxy Securities Co. Ltd., Class A |
5,200 | 6,419 | ||||||
China Galaxy Securities Co. Ltd., Class H |
128,500 | 48,127 | ||||||
China International Capital Corp. Ltd., Class A |
1,600 | 7,594 | ||||||
China International Capital Corp. Ltd., Class H(b) |
19,600 | 27,266 | ||||||
China Merchants Securities Co. Ltd., Class A |
21,220 | 36,343 | ||||||
China Merchants Securities Co. Ltd., Class H(a) (b) |
16,600 | 15,395 | ||||||
CITIC Securities Co. Ltd., Class A |
17,175 | 40,498 | ||||||
CITIC Securities Co. Ltd., Class H |
29,073 | 43,481 | ||||||
Coronation Fund Managers Ltd. |
7,009 | 12,517 | ||||||
CRISIL Ltd. |
342 | 12,386 | ||||||
CSC Financial Co. Ltd., Class A |
7,500 | 24,261 | ||||||
CSC Financial Co. Ltd., Class H(a) (b) |
351,000 | 254,424 | ||||||
Daishin Securities Co. Ltd. |
212 | 2,076 | ||||||
Daishin Securities Co. Ltd. (Preference) |
530 | 4,911 | ||||||
Daou Data Corp. |
6,370 | 69,538 | ||||||
Daou Technology, Inc. |
9,485 | 120,523 | ||||||
Dubai Financial Market PJSC |
33,628 | 12,909 | ||||||
Egyptian Financial Group-Hermes Holding Co.* |
359,104 | 199,254 | ||||||
Everbright Securities Co. Ltd., Class A |
9,400 | 18,057 |
See Accompanying Notes to the Financial Statements.
240 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Founder Securities Co. Ltd., Class A |
14,100 | $ | 12,229 | |||||
GF Securities Co. Ltd., Class A |
14,100 | 26,331 | ||||||
GF Securities Co. Ltd., Class H |
29,400 | 29,925 | ||||||
Guangzhou Yuexiu Financial Holdings Group Co. Ltd., Class A |
11,664 | 8,901 | ||||||
Guosen Securities Co. Ltd., Class A |
14,100 | 16,653 | ||||||
Guotai Junan International Holdings Ltd.(a) |
1,108,000 | 79,044 | ||||||
Guotai Junan Securities Co. Ltd., Class A |
19,600 | 35,502 | ||||||
Guotai Junan Securities Co. Ltd., Class H(a) (b) |
21,200 | 21,416 | ||||||
Haitong Securities Co. Ltd., Class A |
18,800 | 21,740 | ||||||
Haitong Securities Co. Ltd., Class H |
98,000 | 47,940 | ||||||
Hanwha Investment & Securities Co. Ltd. |
5,088 | 8,787 | ||||||
HDFC Asset Management Co. Ltd.(b) |
1,150 | 28,822 | ||||||
Huatai Securities Co. Ltd., Class A |
24,100 | 39,525 | ||||||
Huatai Securities Co. Ltd., Class H(b) |
46,200 | 45,259 | ||||||
IBF Financial Holdings Co. Ltd. |
52,387 | 18,046 | ||||||
ICICI Securities Ltd.(b) |
1,880 | 11,727 | ||||||
IDFC Ltd. |
53,949 | 50,477 | ||||||
IIFL Wealth Management Ltd. |
2,010 | 43,013 | ||||||
Indian Energy Exchange Ltd.(b) |
7,100 | 12,000 | ||||||
Industrial Securities Co. Ltd., Class A* |
34,450 | 25,724 | ||||||
Investec Ltd. |
8,207 | 40,348 | ||||||
Is Yatirim Menkul Degerler A/S |
47,824 | 92,805 | ||||||
JM Financial Ltd. |
150,439 | 124,400 | ||||||
JSE Ltd. |
1,224 | 6,770 | ||||||
KIWOOM Securities Co. Ltd. |
640 | 36,303 | ||||||
Korea Investment Holdings Co. Ltd. |
1,225 | 42,612 | ||||||
Meritz Securities Co. Ltd. |
6,708 | 17,424 | ||||||
Mirae Asset Securities Co. Ltd. |
7,325 | 32,654 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Moscow Exchange MICEX-RTS PJSC* ‡ |
29,911 | $ | — | |||||
Multi Commodity Exchange of India Ltd. |
583 | 10,820 | ||||||
Nanjing Securities Co. Ltd., Class A |
9,400 | 10,200 | ||||||
NH Investment & Securities Co. Ltd. |
5,356 | 33,728 | ||||||
Ninety One Ltd. |
6,828 | 16,051 | ||||||
Nippon Life India Asset Management Ltd.(b) |
5,244 | 17,136 | ||||||
Orient Securities Co. Ltd., Class A |
12,032 | 12,793 | ||||||
Orient Securities Co. Ltd., Class H(b) |
20,400 | 7,614 | ||||||
Pacific Strategic Financial Tbk. PT* |
448,500 | 32,924 | ||||||
Pihsiang Machinery Manufacturing Co. Ltd.* ‡ |
5,000 | — | ||||||
President Securities Corp. |
53,000 | 24,097 | ||||||
PSG Konsult Ltd. |
24,750 | 14,774 | ||||||
Reinet Investments SCA |
2,450 | 39,347 | ||||||
Samsung Securities Co. Ltd. |
2,009 | 44,779 | ||||||
Saratoga Investama Sedaya Tbk. PT |
27,500 | 4,337 | ||||||
Saudi Tadawul Group Holding Co. |
811 | 46,879 | ||||||
Shenwan Hongyuan Group Co. Ltd., Class A |
47,900 | 25,530 | ||||||
Shinyoung Securities Co. Ltd. |
1,617 | 62,775 | ||||||
Sinolink Securities Co. Ltd., Class A |
9,400 | 10,162 | ||||||
Sociedad de Inversiones Oro Blanco SA |
19,516,629 | 164,973 | ||||||
SPIC Industry-Finance Holdings Co. Ltd., Class A |
10,000 | 5,631 | ||||||
UTI Asset Management Co. Ltd. |
3,250 | 27,548 | ||||||
Western Securities Co. Ltd., Class A |
10,000 | 8,180 | ||||||
Woori Investment Bank Co. Ltd. |
6,985 | 3,712 | ||||||
Woori Technology Investment Co. Ltd.* |
22,483 | 70,237 | ||||||
Yuanta Securities Korea Co. Ltd. |
39,528 | 66,738 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 241 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Zheshang Securities Co. Ltd., Class A |
4,700 | $ | 6,549 | |||||
Zhongtai Securities Co. Ltd., Class A |
15,900 | 13,855 | ||||||
3,795,233 | ||||||||
Chemicals – 4.6% | ||||||||
Aarti Industries Ltd. |
4,383 | 37,017 | ||||||
Advanced Nano Products Co. Ltd. |
355 | 23,177 | ||||||
Advanced Petrochemical Co. |
2,025 | 23,874 | ||||||
AECI Ltd. |
40,122 | 201,511 | ||||||
Aekyung Chemical Co. Ltd. |
6,076 | 39,627 | ||||||
Alkyl Amines Chemicals |
220 | 7,849 | ||||||
Alpek SAB de CV(a) |
19,636 | 27,472 | ||||||
Alujain Corp. |
13,909 | 174,346 | ||||||
Asia Polymer Corp. |
147,000 | 113,366 | ||||||
Asian Paints Ltd. |
7,423 | 278,680 | ||||||
Atul Ltd. |
259 | 26,199 | ||||||
Avia Avian Tbk. PT |
561,700 | 28,270 | ||||||
Balaji Amines Ltd. |
350 | 12,790 | ||||||
Barito Pacific Tbk. PT |
474,700 | 25,108 | ||||||
BASF India Ltd. |
400 | 13,863 | ||||||
Batu Kawan Bhd. |
6,300 | 28,009 | ||||||
Bayer CropScience Ltd. |
141 | 7,969 | ||||||
Berger Paints India Ltd. |
5,344 | 37,818 | ||||||
Boubyan Petrochemicals Co. KSCP |
7,344 | 18,896 | ||||||
Braskem SA (Preference), Class A |
5,500 | 35,334 | ||||||
Carborundum Universal Ltd. |
5,096 | 52,073 | ||||||
Castrol India Ltd. |
18,650 | 28,005 | ||||||
Chambal Fertilisers and Chemicals Ltd. |
4,398 | 17,342 | ||||||
Chandra Asri Petrochemical Tbk. PT |
392,000 | 61,323 | ||||||
Chemplast Sanmar Ltd.* |
27,538 | 124,820 | ||||||
China General Plastics Corp. |
21,000 | 12,871 | ||||||
China Lumena New Materials Corp.* ‡ |
22,200 | — | ||||||
China Man-Made Fiber Corp.* |
50,000 | 11,995 | ||||||
China Petrochemical Development Corp. |
85,254 | 24,844 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
China Risun Group Ltd.(a) (b) |
490,000 | $ | 172,908 | |||||
China Steel Chemical Corp. |
9,000 | 28,769 | ||||||
China XLX Fertiliser Ltd. |
196,000 | 74,906 | ||||||
Chunbo Co. Ltd. |
141 | 21,638 | ||||||
CNNC Hua Yuan Titanium Dioxide Co. Ltd., Class A |
7,975 | 7,299 | ||||||
Coromandel International Ltd. |
1,898 | 22,066 | ||||||
D&L Industries, Inc. |
110,800 | 15,028 | ||||||
DCM Shriram Ltd. |
1,375 | 17,368 | ||||||
Deepak Fertilisers & Petrochemicals Corp. Ltd. |
2,538 | 29,616 | ||||||
Deepak Nitrite Ltd. |
1,105 | 30,889 | ||||||
Dongjin Semichem Co. Ltd. |
725 | 15,320 | ||||||
Dongyue Group Ltd. |
42,000 | 36,490 | ||||||
Ecopro Co. Ltd. |
619 | 61,707 | ||||||
Egypt Kuwait Holding Co. SAE |
10,969 | 12,680 | ||||||
EID Parry India Ltd. |
40,072 | 299,847 | ||||||
Engro Corp. Ltd. |
132,285 | 141,184 | ||||||
Engro Fertilizers Ltd. |
239,264 | 87,650 | ||||||
Engro Polymer & Chemicals Ltd. |
112,242 | 26,745 | ||||||
Eternal Materials Co. Ltd. |
27,550 | 25,564 | ||||||
Fauji Fertilizer Co. Ltd. |
280,616 | 131,347 | ||||||
Fertiglobe plc |
35,182 | 48,754 | ||||||
Fine Organic Industries Ltd. |
350 | 24,275 | ||||||
Finolex Industries Ltd. |
9,600 | 15,535 | ||||||
Foosung Co. Ltd. |
1,768 | 15,391 | ||||||
Formosa Chemicals & Fibre Corp. |
68,000 | 146,668 | ||||||
Formosa Plastics Corp. |
76,000 | 196,000 | ||||||
Formosan Union Chemical |
143,000 | 90,311 | ||||||
Fufeng Group Ltd. |
453,000 | 234,872 | ||||||
Galaxy Surfactants Ltd.(b) |
250 | 8,785 | ||||||
Grand Pacific Petrochemical |
343,000 | 185,218 | ||||||
Guangzhou Tinci Materials Technology Co. Ltd., Class A |
5,000 | 29,115 | ||||||
Gujarat Fluorochemicals Ltd. |
715 | 32,745 | ||||||
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. |
3,600 | 30,841 | ||||||
Hangzhou Oxygen Plant Group Co. Ltd. |
2,400 | 13,840 | ||||||
Hansol Chemical Co. Ltd. |
232 | 30,212 | ||||||
Hanwha Solutions Corp.* |
3,591 | 118,990 |
See Accompanying Notes to the Financial Statements.
242 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Hektas Ticaret TAS* |
25,017 | $ | 38,515 | |||||
Hengli Petrochemical Co. Ltd., Class A |
14,700 | 30,896 | ||||||
Hengyi Petrochemical Co. Ltd., Class A |
14,100 | 12,944 | ||||||
Hoshine Silicon Industry Co. Ltd., Class A |
1,900 | 24,913 | ||||||
Huabao International Holdings Ltd.(a) |
17,000 | 7,840 | ||||||
Huafon Chemical Co. Ltd., Class A |
5,300 | 4,836 | ||||||
Hubei Xingfa Chemicals Group Co. Ltd., Class A |
5,000 | 19,367 | ||||||
Hyosung Advanced Materials Corp. |
55 | 12,317 | ||||||
Hyosung Chemical Corp.* |
441 | 31,424 | ||||||
Hyosung TNC Corp. |
110 | 20,194 | ||||||
Indorama Ventures PCL, NVDR |
66,700 | 73,605 | ||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A |
23,500 | 12,493 | ||||||
International CSRC Investment Holdings Co. |
50,000 | 29,327 | ||||||
Jiangsu Eastern Shenghong Co. Ltd., Class A |
11,000 | 18,447 | ||||||
Jubilant Ingrevia Ltd. |
2,701 | 16,794 | ||||||
Kansai Nerolac Paints Ltd. |
2,196 | 12,893 | ||||||
KCC Corp. |
106 | 18,157 | ||||||
KG Chemical Corp. |
3,609 | 58,273 | ||||||
Kolon Industries, Inc. |
674 | 20,583 | ||||||
Korea Petrochemical Ind Co. Ltd. |
1,688 | 140,425 | ||||||
KuibyshevAzot PJSC‡ |
9,900 | — | ||||||
Kukdo Chemical Co. Ltd. |
2,061 | 62,650 | ||||||
Kumho Petrochemical Co. Ltd. |
441 | 40,557 | ||||||
LB Group Co. Ltd., Class A |
4,700 | 9,898 | ||||||
LG Chem Ltd. |
833 | 366,077 | ||||||
LG Chem Ltd. (Preference) |
170 | 34,490 | ||||||
Linde India Ltd. |
624 | 23,155 | ||||||
Lotte Chemical Corp. |
490 | 50,911 | ||||||
LOTTE Fine Chemical Co. Ltd. |
397 | 15,635 | ||||||
Luxi Chemical Group Co. Ltd., Class A |
6,500 | 10,117 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Mesaieed Petrochemical Holding Co. |
68,381 | $ | 42,624 | |||||
Miwon Commercial Co. Ltd. |
125 | 14,874 | ||||||
Miwon Specialty Chemical Co. Ltd. |
120 | 14,111 | ||||||
Nan Ya Plastics Corp. |
173,000 | 366,697 | ||||||
Nantex Industry Co. Ltd. |
109,000 | 114,674 | ||||||
National Industrialization Co.* |
5,584 | 19,884 | ||||||
Navin Fluorine International Ltd. |
645 | 35,467 | ||||||
Ningxia Baofeng Energy Group Co. Ltd., Class A |
10,600 | 16,658 | ||||||
Nizhnekamskneftekhim PJSC‡ |
28,600 | — | ||||||
Nizhnekamskneftekhim PJSC (Preference)‡ |
26,400 | — | ||||||
OCI Co. Ltd. |
602 | 43,107 | ||||||
Omnia Holdings Ltd. |
8,788 | 34,435 | ||||||
Orbia Advance Corp. SAB de CV |
29,933 | 50,444 | ||||||
Organichesky Sintez PJSC‡ |
11,550 | — | ||||||
Oriental Union Chemical Corp. |
38,000 | 19,930 | ||||||
Petkim Petrokimya Holding A/S* |
38,400 | 27,743 | ||||||
Petronas Chemicals Group Bhd. |
43,900 | 80,966 | ||||||
PhosAgro PJSC‡ |
1,540 | — | ||||||
PI Advanced Materials Co. Ltd. |
520 | 10,824 | ||||||
PI Industries Ltd. |
1,239 | 48,525 | ||||||
Pidilite Industries Ltd. |
2,401 | 74,962 | ||||||
Polyplex Corp. Ltd. |
740 | 14,999 | ||||||
PTT Global Chemical PCL, NVDR |
63,300 | 72,348 | ||||||
Qinghai Salt Lake Industry Co. Ltd., Class A* |
10,937 | 32,233 | ||||||
Rongsheng Petrochemical Co. Ltd., Class A |
24,500 | 35,918 | ||||||
SABIC Agri-Nutrients Co. |
3,907 | 165,324 | ||||||
Sahara International Petrochemical Co. |
5,287 | 57,055 | ||||||
Sasa Polyester Sanayi A/S* |
8,102 | 52,350 | ||||||
Sasol Ltd. |
17,437 | 293,224 | ||||||
Satellite Chemical Co. Ltd., Class A |
4,662 | 7,921 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 243 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Saudi Basic Industries Corp. |
15,631 | $ | 367,734 | |||||
Saudi Industrial Investment Group |
6,752 | 40,395 | ||||||
Saudi Kayan Petrochemical Co.* |
15,974 | 55,945 | ||||||
Scientex Bhd. |
26,100 | 17,996 | ||||||
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A |
6,110 | 21,916 | ||||||
Shanghai Putailai New Energy Technology Co. Ltd., Class A |
2,800 | 19,147 | ||||||
Shin Foong Specialty & Applied Materials Co. Ltd. |
17,000 | 27,118 | ||||||
Shinkong Synthetic Fibers Corp. |
53,000 | 26,564 | ||||||
Shiny Chemical Industrial Co. Ltd. |
3,750 | 11,696 | ||||||
Sichuan Yahua Industrial Group Co. Ltd., Class A |
3,600 | 13,194 | ||||||
Sinofert Holdings Ltd.* (a) |
700,000 | 69,555 | ||||||
Sinon Corp. |
21,000 | 23,136 | ||||||
SK Chemicals Co. Ltd. |
412 | 25,568 | ||||||
SK IE Technology Co. Ltd.* (b) |
349 | 12,740 | ||||||
SKC Co. Ltd. |
424 | 30,808 | ||||||
Sociedad Quimica y Minera de Chile SA (Preference), Class B |
2,463 | 234,344 | ||||||
Solar Applied Materials Technology Corp. |
26,000 | 22,351 | ||||||
Solar Industries India Ltd. |
699 | 32,948 | ||||||
Soulbrain Co. Ltd. |
141 | 20,262 | ||||||
Soulbrain Holdings Co. Ltd. |
1,782 | 28,961 | ||||||
SRF Ltd. |
2,588 | 79,995 | ||||||
Sumitomo Chemical India Ltd. |
2,585 | 15,383 | ||||||
Supreme Industries Ltd. |
1,204 | 31,567 | ||||||
Supreme Petrochem Ltd. |
1,728 | 15,741 | ||||||
Surya Esa Perkasa Tbk. PT |
280,400 | 19,146 | ||||||
Taekwang Industrial Co. Ltd. |
98 | 48,365 | ||||||
Taiwan Fertilizer Co. Ltd. |
13,000 | 21,100 | ||||||
Tata Chemicals Ltd. |
2,793 | 38,222 | ||||||
TKG Huchems Co. Ltd. |
1,338 | 19,585 | ||||||
Tongkun Group Co. Ltd., Class A |
9,400 | 15,584 | ||||||
TSRC Corp. |
264,000 | 216,706 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Unid Co. Ltd. |
2,475 | $ | 133,788 | |||||
Unipar Carbocloro SA |
3,335 | 58,911 | ||||||
Unipar Carbocloro SA (Preference), Class B |
20,049 | 408,029 | ||||||
UPC Technology Corp. |
349,000 | 132,137 | ||||||
UPL Ltd. |
9,408 | 82,990 | ||||||
USI Corp. |
28,000 | 17,596 | ||||||
Wanhua Chemical Group Co. Ltd., Class A |
4,900 | 53,951 | ||||||
Xinjiang Zhongtai Chemical Co. Ltd., Class A |
10,600 | 8,540 | ||||||
Yanbu National Petrochemical Co. |
5,439 | 64,703 | ||||||
Yunnan Energy New Material Co. Ltd. |
1,200 | 24,340 | ||||||
Zhejiang Yongtai Technology Co. Ltd., Class A |
2,800 | 8,371 | ||||||
9,557,179 | ||||||||
Commercial Services & Supplies – 0.2% | ||||||||
China Conch Environment Protection Holdings Ltd.* |
73,500 | 21,629 | ||||||
China Everbright Environment Group Ltd. |
98,000 | 32,584 | ||||||
Cleanaway Co. Ltd. |
5,000 | 25,914 | ||||||
Dynagreen Environmental Protection Group Co. Ltd., Class H(a) (b) |
165,000 | 45,192 | ||||||
Ecopro HN Co. Ltd. |
687 | 24,934 | ||||||
Frontken Corp. Bhd. |
21,800 | 11,297 | ||||||
GPS Participacoes e Empreendimentos SA(c) |
14,100 | 37,136 | ||||||
Indian Railway Catering & Tourism Corp. Ltd. |
5,390 | 48,263 | ||||||
KEPCO Plant Service & Engineering Co. Ltd. |
100 | 2,239 | ||||||
PNB Holdings Corp.* |
46,815 | 33,725 | ||||||
S-1 Corp. |
347 | 15,201 | ||||||
Saudi Airlines Catering Co.* |
1,848 | 38,115 | ||||||
Sunny Friend Environmental Technology Co. Ltd. |
5,000 | 20,870 | ||||||
Taiwan Secom Co. Ltd. |
3,165 | 9,076 | ||||||
366,175 |
See Accompanying Notes to the Financial Statements.
244 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Communications Equipment – 0.3% | ||||||||
Accton Technology Corp. |
9,000 | $ | 67,872 | |||||
Advanced Ceramic X Corp. |
2,000 | 9,527 | ||||||
Arcadyan Technology Corp. |
69,000 | 193,151 | ||||||
BYD Electronic International Co. Ltd.(a) |
24,500 | 71,161 | ||||||
Hengtong Optic-electric Co. Ltd., Class A |
10,000 | 26,649 | ||||||
Intelbras SA Industria de Telecomunicacao Eletronica Brasileira |
5,713 | 39,762 | ||||||
Intellian Technologies, Inc. |
218 | 9,550 | ||||||
KMW Co. Ltd.* |
563 | 9,347 | ||||||
Seojin System Co. Ltd. |
11,117 | 114,725 | ||||||
Sercomm Corp. |
10,000 | 23,462 | ||||||
Sterlite Technologies Ltd. |
11,660 | 23,185 | ||||||
Tejas Networks Ltd.* (b) |
2,300 | 19,066 | ||||||
Tianjin 712 Communication & Broadcasting Co. Ltd., Class A |
900 | 4,857 | ||||||
Wistron NeWeb Corp. |
13,000 | 33,768 | ||||||
ZTE Corp., Class A |
4,700 | 14,277 | ||||||
ZTE Corp., Class H |
10,600 | 18,905 | ||||||
679,264 | ||||||||
Construction & Engineering – 1.3% | ||||||||
BES Engineering Corp. |
530,000 | 131,421 | ||||||
CH Karnchang PCL, NVDR |
44,000 | 26,821 | ||||||
China Communications Services Corp. Ltd., Class H |
934,000 | 260,573 | ||||||
China Conch Venture Holdings Ltd.(a) |
49,000 | 72,284 | ||||||
China Energy Engineering Corp. Ltd. |
80,000 | 25,101 | ||||||
China Energy Engineering Corp. Ltd., Class H(a) |
100,000 | 10,064 | ||||||
China Railway Group Ltd., Class A |
45,200 | 30,903 | ||||||
China Railway Group Ltd., Class H |
119,000 | 51,694 | ||||||
Continental Holdings Corp. |
196,000 | 169,708 | ||||||
Daewoo Engineering & Construction Co. Ltd.* |
3,901 | 11,516 |
Investments | Shares | Value | ||||||
Construction & Engineering – (continued) | ||||||||
Dayamitra Telekomunikasi Tbk. PT* |
565,500 | $ | 25,923 | |||||
DL Construction Co. Ltd. |
3,822 | 35,283 | ||||||
DL E&C Co. Ltd. |
1,300 | 31,440 | ||||||
DL Holdings Co. Ltd. |
397 | 17,140 | ||||||
Gamuda Bhd. |
49,119 | 39,997 | ||||||
Greentown Management Holdings Co. Ltd.(b) |
35,000 | 20,064 | ||||||
GS Engineering & Construction Corp. |
2,450 | 37,323 | ||||||
HDC Hyundai Development Co-Engineering & Construction, Class E |
16,010 | 112,394 | ||||||
Hyundai Engineering & Construction Co. Ltd. |
2,280 | 55,862 | ||||||
IJM Corp. Bhd. |
78,400 | 27,029 | ||||||
IRB Infrastructure Developers Ltd. |
4,804 | 13,566 | ||||||
IS Dongseo Co. Ltd. |
808 | 17,896 | ||||||
KEC International Ltd. |
6,678 | 35,497 | ||||||
KEPCO Engineering & Construction Co., Inc. |
382 | 13,315 | ||||||
KNR Constructions Ltd. |
6,325 | 17,009 | ||||||
Larsen & Toubro Ltd. |
12,049 | 294,480 | ||||||
Larsen & Toubro Ltd., GDR(b) |
296 | 7,134 | ||||||
Metallurgical Corp. of China Ltd., Class A |
65,800 | 25,964 | ||||||
Metallurgical Corp. of China Ltd., Class H |
106,000 | 16,879 | ||||||
NBCC India Ltd. |
41,870 | 16,414 | ||||||
PNC Infratech Ltd.(b) |
2,700 | 8,415 | ||||||
Power Construction Corp. of China Ltd., Class A |
35,500 | 34,242 | ||||||
Praj Industries Ltd. |
6,061 | 30,255 | ||||||
Rail Vikas Nigam Ltd.(b) |
192,325 | 92,936 | ||||||
Ruentex Engineering & Construction Co. |
26,000 | 72,297 | ||||||
Run Long Construction Co. Ltd. |
87,400 | 171,694 | ||||||
Samsung Engineering Co. Ltd.* |
2,842 | 47,584 | ||||||
Shanghai Construction Group Co. Ltd., Class A |
23,500 | 8,275 | ||||||
Shanghai Tunnel Engineering Co. Ltd., Class A |
14,100 | 10,046 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 245 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Sichuan Road and Bridge Group Co. Ltd., Class A |
14,600 | $ | 22,504 | |||||
Tekfen Holding A/S |
63,210 | 111,993 | ||||||
TY Holdings Co. Ltd.* |
8,750 | 64,806 | ||||||
United Integrated Services Co. Ltd. |
3,000 | 13,500 | ||||||
Voltas Ltd. |
3,969 | 42,012 | ||||||
Waskita Karya Persero Tbk. PT* |
603,196 | 18,563 | ||||||
Xinte Energy Co. Ltd., Class H(a) |
148,000 | 288,841 | ||||||
Yankey Engineering Co. Ltd. |
15,000 | 73,318 | ||||||
2,761,975 | ||||||||
Construction Materials – 1.5% | ||||||||
ACC Ltd. |
1,376 | 39,734 | ||||||
Afrimat Ltd. |
3,450 | 9,011 | ||||||
Ambuja Cements Ltd. |
11,366 | 73,178 | ||||||
Anhui Conch Cement Co. Ltd., Class A |
9,800 | 32,601 | ||||||
Anhui Conch Cement Co. Ltd., Class H |
35,000 | 90,065 | ||||||
Arabian Cement Co. |
2,310 | 23,115 | ||||||
Asia Cement China Holdings Corp.(a) |
179,000 | 62,480 | ||||||
Asia Cement Co. Ltd. |
7,644 | 49,745 | ||||||
Asia Cement Corp. |
79,000 | 91,448 | ||||||
BBMG Corp., Class A |
42,300 | 13,504 | ||||||
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Class A |
6,000 | 20,141 | ||||||
Berkah Beton Sadaya Tbk. PT |
85,000 | 22,071 | ||||||
Birla Corp. Ltd. |
750 | 8,363 | ||||||
Cementos Argos SA |
22,735 | 15,504 | ||||||
Cemex SAB de CV* |
428,000 | 166,034 | ||||||
Chia Hsin Cement Corp. |
50,000 | 24,595 | ||||||
China Jushi Co. Ltd., Class A |
5,143 | 8,244 | ||||||
China National Building Material Co. Ltd., Class H |
134,050 | 77,870 | ||||||
China Resources Cement Holdings Ltd.(a) |
68,000 | 24,602 | ||||||
China Tianrui Group Cement Co. Ltd.* |
36,000 | 27,058 |
Investments | Shares | Value | ||||||
Construction Materials – (continued) | ||||||||
City Cement Co. |
4,208 | $ | 22,778 | |||||
CSG Holding Co. Ltd., Class B |
452,100 | 173,356 | ||||||
Dalmia Bharat Ltd. |
1,710 | 33,072 | ||||||
Eastern Province Cement Co. |
1,199 | 14,136 | ||||||
GCC SAB de CV(a) |
7,800 | 48,343 | ||||||
Goldsun Building Materials Co. Ltd. |
38,000 | 26,711 | ||||||
Grasim Industries Ltd. |
5,978 | 124,337 | ||||||
Grupo Argos SA |
142,475 | 299,060 | ||||||
Hanil Cement Co. Ltd. |
1,031 | 8,179 | ||||||
Huaxin Cement Co. Ltd., Class A |
3,700 | 6,803 | ||||||
Huaxin Cement Co. Ltd., Class H |
10,400 | 8,983 | ||||||
India Cements Ltd. (The) |
5,000 | 14,563 | ||||||
Indocement Tunggal Prakarsa Tbk. PT |
32,900 | 19,564 | ||||||
JK Cement Ltd. |
530 | 17,368 | ||||||
Lucky Cement Ltd.* |
45,227 | 99,593 | ||||||
Nuh Cimento Sanayi A/S |
23,128 | 108,846 | ||||||
Nuvoco Vistas Corp. Ltd.* |
3,650 | 17,483 | ||||||
Oyak Cimento Fabrikalari A/S* |
21,550 | 19,461 | ||||||
POSCO Chemical Co. Ltd. |
499 | 69,887 | ||||||
Qassim Cement Co. (The) |
1,998 | 40,092 | ||||||
Qatar National Cement Co. QSC |
11,041 | 13,810 | ||||||
Ramco Cements Ltd. (The) |
2,289 | 19,960 | ||||||
Rhi Magnesita India Ltd. |
1,850 | 14,481 | ||||||
Riyadh Cement Co. |
1,967 | 16,804 | ||||||
Saudi Cement Co. |
2,022 | 28,682 | ||||||
Semen Indonesia Persero Tbk. PT |
57,600 | 29,359 | ||||||
Shree Cement Ltd. |
196 | 53,845 | ||||||
Siam Cement PCL (The), NVDR |
8,500 | 72,359 | ||||||
Southern Province Cement Co. |
1,634 | 23,830 | ||||||
SSANGYONG C&E Co. Ltd. |
290 | 1,156 | ||||||
Taiwan Cement Corp. |
180,684 | 169,623 | ||||||
Tangshan Jidong Cement Co. Ltd., Class A |
4,700 | 4,888 | ||||||
Tipco Asphalt PCL, NVDR |
59,300 | 26,643 | ||||||
TPI Polene PCL, NVDR |
1,950,300 | 90,700 | ||||||
UltraTech Cement Ltd. |
2,109 | 171,083 |
See Accompanying Notes to the Financial Statements.
246 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction Materials – (continued) | ||||||||
Unacem Corp. SAA |
371,616 | $ | 158,484 | |||||
Universal Cement Corp. |
146,000 | 90,620 | ||||||
Yamama Cement Co.* |
3,763 | 29,443 | ||||||
Yanbu Cement Co. |
2,888 | 32,050 | ||||||
3,099,798 | ||||||||
Consumer Finance – 0.9% | ||||||||
360 DigiTech, Inc., ADR |
48,020 | 487,883 | ||||||
AEON Credit Service M Bhd. |
5,600 | 15,398 | ||||||
Bajaj Finance Ltd. |
4,655 | 401,749 | ||||||
BFI Finance Indonesia Tbk. PT |
150,000 | 10,627 | ||||||
Capri Global Capital Ltd. |
1,948 | 17,641 | ||||||
Cholamandalam Investment and Finance Co. Ltd. |
7,595 | 65,084 | ||||||
CreditAccess Grameen Ltd.* |
1,166 | 13,737 | ||||||
Differ Group Auto Ltd.* (a) |
166,000 | 33,201 | ||||||
Gentera SAB de CV |
26,941 | 27,635 | ||||||
JMT Network Services PCL, NVDR |
16,500 | 28,179 | ||||||
Krungthai Card PCL, NVDR |
21,200 | 31,750 | ||||||
Lufax Holding Ltd., ADR |
16,711 | 26,570 | ||||||
Mahindra & Mahindra Financial Services Ltd. |
14,562 | 35,535 | ||||||
Manappuram Finance Ltd. |
214,365 | 272,690 | ||||||
Muangthai Capital PCL, NVDR |
16,500 | 15,715 | ||||||
Muthoot Finance Ltd. |
2,226 | 28,060 | ||||||
Ngern Tid Lor PCL, NVDR |
23,692 | 16,185 | ||||||
Poonawalla Fincorp Ltd. |
5,720 | 21,725 | ||||||
Ratchthani Leasing PCL, NVDR |
203,500 | 23,954 | ||||||
Samsung Card Co. Ltd. |
1,140 | 24,730 | ||||||
SBI Cards & Payment Services Ltd. |
4,949 | 49,423 | ||||||
Shriram City Union Finance Ltd. |
717 | 15,803 | ||||||
Shriram Transport Finance Co. Ltd. |
2,795 | 41,502 | ||||||
Srisawad Corp. PCL, NVDR |
26,403 | 28,443 | ||||||
Sundaram Finance Ltd. |
1,445 | 41,047 | ||||||
Transaction Capital Ltd. |
16,120 | 36,042 | ||||||
Yulon Finance Corp. |
4,248 | 17,995 | ||||||
1,828,303 |
Investments | Shares | Value | ||||||
Containers & Packaging – 0.3% | ||||||||
Cheng Loong Corp. |
16,000 | $ | 13,010 | |||||
Klabin SA |
24,552 | 101,160 | ||||||
Polyplex Thailand PCL, NVDR |
161,700 | 100,266 | ||||||
SCG Packaging PCL, NVDR |
32,800 | 44,813 | ||||||
Taiwan Hon Chuan Enterprise Co. Ltd. |
107,000 | 276,943 | ||||||
Ton Yi Industrial Corp. |
295,000 | 151,975 | ||||||
688,167 | ||||||||
Distributors – 0.1% | ||||||||
China Tobacco International HK Co. Ltd.(b) |
7,000 | 6,742 | ||||||
Wuchan Zhongda Group Co. Ltd., Class A |
13,800 | 7,885 | ||||||
Xinhua Winshare Publishing and Media Co. Ltd., Class H(a) |
147,000 | 88,763 | ||||||
103,390 | ||||||||
Diversified Consumer Services – 1.3% | ||||||||
Advtech Ltd. |
24,310 | 23,546 | ||||||
China Education Group Holdings Ltd.(b) |
343,000 | 200,560 | ||||||
Cogna Educacao* |
52,400 | 32,855 | ||||||
Fu Shou Yuan International Group Ltd. |
55,000 | 27,465 | ||||||
Humansoft Holding Co. KSC |
1,431 | 15,532 | ||||||
Lung Yen Life Service Corp. |
2,000 | 2,191 | ||||||
MegaStudyEdu Co. Ltd. |
385 | 23,190 | ||||||
New Oriental Education & Technology Group, Inc.* |
597,800 | 1,463,686 | ||||||
Offcn Education Technology Co. Ltd., Class A* |
4,700 | 2,801 | ||||||
TAL Education Group, ADR* (a) |
197,470 | 930,084 | ||||||
YDUQS Participacoes SA |
10,500 | 32,277 | ||||||
2,754,187 | ||||||||
Diversified Financial Services – 1.2% | ||||||||
AVIC Industry-Finance Holdings Co. Ltd., Class A |
23,500 | 9,756 | ||||||
Bajaj Finserv Ltd. |
6,488 | 132,264 | ||||||
Bajaj Holdings & Investment Ltd. |
574 | 46,186 | ||||||
Chailease Holding Co. Ltd. |
27,177 | 125,669 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 247 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Financial Services – (continued) | ||||||||
Corp. Financiera Colombiana SA* |
3,252 | $ | 10,722 | |||||
Far East Horizon Ltd.(a) |
53,000 | 40,915 | ||||||
FirstRand Ltd. |
97,236 | 340,478 | ||||||
Galaxy Cosmos Mezz plc* |
2,333 | 377 | ||||||
Genertec Universal Medical Group Co. Ltd.(a) (b) |
326,000 | 136,217 | ||||||
Grupo de Inversiones Suramericana SA |
4,400 | 35,871 | ||||||
Grupo de Inversiones Suramericana SA (Preference) |
3,587 | 10,034 | ||||||
Housing Development Finance Corp. Ltd. |
31,505 | 940,002 | ||||||
Indian Railway Finance Corp. Ltd.(b) |
34,250 | 9,372 | ||||||
L&T Finance Holdings Ltd. |
26,381 | 25,846 | ||||||
Meritz Financial Group, Inc. |
947 | 14,427 | ||||||
Metro Pacific Investments Corp. |
381,000 | 24,063 | ||||||
National Investments Co. KSCP |
27,240 | 21,018 | ||||||
NICE Holdings Co. Ltd. |
6,432 | 55,765 | ||||||
Piramal Enterprises Ltd. |
2,112 | 21,672 | ||||||
Power Finance Corp. Ltd. |
35,812 | 49,861 | ||||||
REC Ltd. |
29,397 | 36,419 | ||||||
Remgro Ltd. |
7,469 | 55,562 | ||||||
Shandong Hi-Speed Holdings Group Ltd.* (a) |
49,500 | 20,494 | ||||||
Yuanta Financial Holding Co. Ltd. |
376,580 | 230,231 | ||||||
2,393,221 | ||||||||
Diversified Telecommunication Services – 1.1% | ||||||||
AL Yah Satellite Communications Co. PJSC |
43,340 | 32,331 | ||||||
China Tower Corp. Ltd., Class H(b) |
784,000 | 70,911 | ||||||
Chunghwa Telecom Co. Ltd. |
67,000 | 230,801 | ||||||
CITIC Telecom International Holdings Ltd. |
637,000 | 188,264 | ||||||
Converge Information and Communications Technology Solutions, Inc.* |
60,500 | 12,862 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
Emirates Telecommunications Group Co. PJSC |
60,059 | $ | 421,863 | |||||
Hellenic Telecommunications Organization SA |
2,597 | 40,811 | ||||||
HFCL Ltd. |
22,055 | 22,034 | ||||||
Indus Towers Ltd. |
25,442 | 57,014 | ||||||
KT Corp. |
3,590 | 92,242 | ||||||
LG Uplus Corp. |
7,465 | 60,005 | ||||||
Magyar Telekom Telecommunications plc |
176,244 | 126,159 | ||||||
Oi SA* |
268,200 | 12,778 | ||||||
Ooredoo QPSC |
18,114 | 48,596 | ||||||
Operadora De Sites Mexicanos SAB de CV, Series A-1(a) |
22,200 | 24,114 | ||||||
Rostelecom PJSC‡ |
33,770 | — | ||||||
Rostelecom PJSC (Preference)‡ |
15,392 | — | ||||||
Sarana Menara Nusantara Tbk. PT |
315,700 | 23,378 | ||||||
Saudi Telecom Co. |
29,562 | 317,841 | ||||||
Tata Communications Ltd. |
1,646 | 25,034 | ||||||
Tata Teleservices Maharashtra Ltd.* |
6,148 | 7,572 | ||||||
Telefonica Brasil SA |
11,677 | 91,929 | ||||||
Telekom Malaysia Bhd. |
36,100 | 42,453 | ||||||
Telkom Indonesia Persero Tbk. PT |
858,600 | 241,658 | ||||||
Telkom SA SOC Ltd.* |
8,100 | 16,092 | ||||||
TIME dotCom Bhd. |
9,000 | 8,661 | ||||||
Tower Bersama Infrastructure Tbk. PT |
121,300 | 19,131 | ||||||
True Corp. PCL, NVDR |
491,200 | 64,013 | ||||||
Turk Telekomunikasyon A/S |
19,746 | 13,151 | ||||||
2,311,698 | ||||||||
Electric Utilities – 1.4% | ||||||||
Adani Transmission Ltd.* |
5,049 | 204,253 | ||||||
Alupar Investimento SA |
3,500 | 18,857 | ||||||
Celsia SA ESP |
215,551 | 122,492 | ||||||
Centrais Eletricas Brasileiras SA |
34,300 | 325,661 | ||||||
Centrais Eletricas Brasileiras SA (Preference), Class B |
8,481 | 86,180 | ||||||
CESC Ltd. |
251,900 | 233,558 |
See Accompanying Notes to the Financial Statements.
248 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
CEZ A/S |
3,113 | $ | 101,795 | |||||
Cia de Transmissao de Energia Eletrica Paulista (Preference) |
5,200 | 24,279 | ||||||
Cia Energetica de Minas Gerais |
9,356 | 30,829 | ||||||
Cia Energetica de Minas Gerais (Preference) |
46,802 | 101,413 | ||||||
Cia Paranaense de Energia |
5,500 | 38,562 | ||||||
CPFL Energia SA |
4,700 | 31,726 | ||||||
EDP – Energias do Brasil SA |
9,400 | 41,328 | ||||||
Enel Americas SA |
529,169 | 52,412 | ||||||
Enel Chile SA |
829,052 | 29,163 | ||||||
Energisa SA |
4,800 | 44,357 | ||||||
Enerjisa Enerji A/S(b) |
7,676 | 8,459 | ||||||
Equatorial Energia SA |
24,500 | 140,213 | ||||||
Federal Grid Co. Unified Energy System PJSC* ‡ |
12,705,298 | — | ||||||
Holding Co. ADMIE IPTO SA |
39,169 | 64,882 | ||||||
Inter RAO UES PJSC‡ |
1,596,292 | — | ||||||
Interconexion Electrica SA ESP |
12,936 | 51,048 | ||||||
Korea Electric Power Corp.* |
7,595 | 89,309 | ||||||
Manila Electric Co. |
5,840 | 30,374 | ||||||
Mosenergo PJSC‡ |
4,455,000 | — | ||||||
Neoenergia SA |
4,700 | 14,860 | ||||||
Power Grid Corp. of India Ltd. |
106,085 | 292,390 | ||||||
Public Power Corp. SA* |
2,126 | 13,427 | ||||||
ROSSETI PJSC* ‡ |
1,466,436 | — | ||||||
RusHydro PJSC‡ |
2,361,000 | — | ||||||
Saudi Electricity Co. |
23,618 | 169,708 | ||||||
SGC Energy Co. Ltd. |
2,326 | 51,273 | ||||||
SJVN Ltd. |
226,919 | 96,083 | ||||||
Synergy Grid & Development Phils, Inc. |
477,200 | 98,652 | ||||||
Tata Power Co. Ltd. (The) |
32,585 | 88,964 | ||||||
Tenaga Nasional Bhd. |
90,100 | 160,457 | ||||||
Torrent Power Ltd. |
4,645 | 28,301 | ||||||
Transmissora Alianca de Energia Eletrica SA |
5,000 | 38,296 | ||||||
2,923,561 | ||||||||
Electrical Equipment – 1.1% | ||||||||
ABB India Ltd. |
1,088 | 40,085 |
Investments | Shares | Value | ||||||
Electrical Equipment – (continued) | ||||||||
AcBel Polytech, Inc. |
146,000 | $ | 125,055 | |||||
Amara Raja Batteries Ltd. |
2,700 | 16,734 | ||||||
Bharat Heavy Electricals Ltd. |
21,300 | 19,054 | ||||||
Bizlink Holding, Inc. |
2,000 | 15,300 | ||||||
CG Power & Industrial Solutions Ltd.* |
12,320 | 38,696 | ||||||
Chicony Power Technology Co. Ltd. |
65,000 | 141,004 | ||||||
China High Speed Transmission Equipment Group Co. Ltd.* (a) |
147,000 | 59,737 | ||||||
Chung-Hsin Electric & Machinery Manufacturing Corp. |
21,000 | 32,195 | ||||||
CS Wind Corp. |
581 | 23,983 | ||||||
Dongfang Electric Corp. Ltd., Class A |
5,000 | 15,900 | ||||||
Doosan Enerbility Co. Ltd.* |
7,146 | 66,471 | ||||||
Doosan Fuel Cell Co. Ltd.* |
690 | 13,200 | ||||||
Ecopro BM Co. Ltd. |
828 | 66,905 | ||||||
ElSewedy Electric Co.* |
195,813 | 69,082 | ||||||
Fangda Carbon New Material Co. Ltd., Class A* |
5,300 | 4,364 | ||||||
Finolex Cables Ltd. |
3,245 | 20,444 | ||||||
Gotion High-tech Co. Ltd., Class A |
4,600 | 18,939 | ||||||
Graphite India Ltd. |
5 | 21 | ||||||
Gulf Cable & Electrical Industries Co. KSCP |
4,140 | 16,106 | ||||||
Hangzhou Steam Turbine Power Group Co. Ltd., Class B |
12,800 | 17,513 | ||||||
Havells India Ltd. |
4,450 | 65,387 | ||||||
Hitachi Energy India Ltd. |
371 | 14,182 | ||||||
HUA ENG Wire & Cable Co. Ltd. |
147,000 | 58,622 | ||||||
Hyosung Heavy Industries Corp.* |
1,813 | 73,057 | ||||||
Hyundai Electric & Energy System Co. Ltd.* |
1,285 | 30,987 | ||||||
Jiangsu Zhongtian Technology Co. Ltd., Class A |
10,000 | 30,102 | ||||||
KEI Industries Ltd. |
1,595 | 31,123 | ||||||
Korea Electric Terminal Co. Ltd. |
2,989 | 108,695 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 249 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – (continued) | ||||||||
LG Energy Solution Ltd.* |
686 | $ | 254,279 | |||||
LS Corp. |
889 | 41,503 | ||||||
LS Electric Co. Ltd. |
456 | 17,607 | ||||||
Ming Yang Smart Energy Group Ltd., Class A |
4,500 | 15,352 | ||||||
NARI Technology Co. Ltd., Class A |
10,000 | 33,431 | ||||||
Ningbo Ronbay New Energy Technology Co. Ltd., Class A |
1,600 | 17,167 | ||||||
Phihong Technology Co. Ltd.* |
17,000 | 18,861 | ||||||
Polycab India Ltd. |
990 | 33,218 | ||||||
Shanghai Electric Group Co. Ltd., Class A* |
24,000 | 12,759 | ||||||
Shanghai Electric Group Co. Ltd., Class H* |
94,000 | 18,321 | ||||||
Shihlin Electric & Engineering Corp. |
13,000 | 22,068 | ||||||
Suzlon Energy Ltd.* |
329,900 | 31,684 | ||||||
Ta Ya Electric Wire & Cable |
42,018 | 21,581 | ||||||
Taihan Electric Wire Co. Ltd.* |
11,376 | 11,979 | ||||||
Tatung Co. Ltd.* |
42,000 | 40,798 | ||||||
TBEA Co. Ltd., Class A |
8,500 | 23,770 | ||||||
Teco Electric and Machinery Co. Ltd. |
22,000 | 19,458 | ||||||
V-Guard Industries Ltd. |
11,448 | 35,404 | ||||||
Voltronic Power Technology Corp. |
1,458 | 59,275 | ||||||
Walsin Lihwa Corp. |
83,665 | 92,824 | ||||||
WEG SA |
24,500 | 188,072 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class A |
10,600 | 15,177 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H(a) |
15,000 | 13,013 | ||||||
Zhefu Holding Group Co. Ltd., Class A |
21,200 | 11,357 | ||||||
Zhejiang Chint Electrics Co. Ltd., Class A |
4,700 | 16,357 | ||||||
Zhuzhou CRRC Times Electric Co. Ltd., Class H |
11,800 | 51,184 | ||||||
2,349,442 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – 3.8% | ||||||||
AAC Technologies Holdings, Inc.* (a) |
14,000 | $ | 25,646 | |||||
Apex International Co. Ltd. |
62,000 | 95,052 | ||||||
Asia Optical Co., Inc. |
3,000 | 5,335 | ||||||
AUO Corp. |
196,000 | 102,798 | ||||||
Aurora Corp. |
4,900 | 11,846 | ||||||
Avary Holding Shenzhen Co. Ltd., Class A |
4,700 | 19,158 | ||||||
BH Co. Ltd. |
9,332 | 157,886 | ||||||
BOE Technology Group Co. Ltd., Class A |
78,900 | 36,106 | ||||||
Career Technology MFG. Co. Ltd.* |
147,000 | 109,945 | ||||||
Chang Wah Electromaterials, Inc. |
22,000 | 20,858 | ||||||
Cheng Uei Precision Industry Co. Ltd. |
136,000 | 141,814 | ||||||
China Railway Signal & Communication Corp. Ltd., Class A |
31,500 | 19,551 | ||||||
Chroma ATE, Inc. |
8,000 | 43,820 | ||||||
Compeq Manufacturing Co. Ltd. |
41,000 | 55,604 | ||||||
Coretronic Corp. |
113,000 | 175,343 | ||||||
Co-Tech Development Corp. |
77,000 | 104,188 | ||||||
Cowell e Holdings, Inc.* |
12,000 | 14,675 | ||||||
Daejoo Electronic Materials Co. Ltd. |
250 | 15,778 | ||||||
Delta Electronics Thailand PCL, NVDR |
9,800 | 149,343 | ||||||
Delta Electronics, Inc. |
34,000 | 271,705 | ||||||
Dreamtech Co. Ltd. |
11,297 | 76,056 | ||||||
Dynapack International Technology Corp. |
49,000 | 104,014 | ||||||
E Ink Holdings, Inc. |
15,000 | 95,663 | ||||||
Elite Material Co. Ltd. |
5,000 | 22,733 | ||||||
FLEXium Interconnect, Inc.* |
10,000 | 28,427 | ||||||
Foxconn Industrial Internet Co. Ltd., Class A |
34,300 | 38,536 | ||||||
Foxconn Technology Co. Ltd. |
32,000 | 44,888 | ||||||
General Interface Solution Holding Ltd. |
5,000 | 12,072 | ||||||
Genius Electronic Optical Co. Ltd. |
2,237 | 20,862 |
See Accompanying Notes to the Financial Statements.
250 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment,
Instruments & Components – (continued) |
||||||||
Global Brands Manufacture Ltd. |
98,800 | $ | 79,107 | |||||
GoerTek, Inc., Class A |
3,800 | 11,288 | ||||||
Gold Circuit Electronics Ltd. |
9,000 | 23,909 | ||||||
Hana Microelectronics PCL, NVDR |
24,900 | 22,735 | ||||||
Hannstar Board Corp. |
125,000 | 111,529 | ||||||
HannStar Display Corp. |
94,000 | 33,402 | ||||||
Hengdian Group DMEGC Magnetics Co. Ltd., Class A |
5,100 | 12,382 | ||||||
Hollysys Automation Technologies Ltd. |
22,834 | 363,974 | ||||||
Holy Stone Enterprise Co. Ltd. |
56,000 | 151,720 | ||||||
Hon Hai Precision Industry Co. Ltd. |
356,000 | 1,132,439 | ||||||
Honeywell Automation India Ltd. |
32 | 15,205 | ||||||
Huagong Tech Co. Ltd., Class A |
4,700 | 10,799 | ||||||
Iljin Materials Co. Ltd. |
477 | 20,293 | ||||||
Innolux Corp. |
310,415 | 114,157 | ||||||
Jay Mart PCL, NVDR |
16,500 | 19,617 | ||||||
KCE Electronics PCL, NVDR |
19,100 | 21,077 | ||||||
Kingboard Holdings Ltd. |
24,500 | 60,424 | ||||||
Kingboard Laminates Holdings Ltd.(a) |
27,500 | 21,965 | ||||||
Korea Circuit Co. Ltd.* |
5,044 | 50,814 | ||||||
L&F Co. Ltd.* |
428 | 67,605 | ||||||
Largan Precision Co. Ltd. |
2,000 | 114,827 | ||||||
LG Display Co. Ltd. |
6,360 | 56,927 | ||||||
LG Innotek Co. Ltd. |
441 | 91,794 | ||||||
Lingyi iTech Guangdong Co., Class A* |
15,900 | 10,304 | ||||||
Lotes Co. Ltd. |
1,299 | 31,283 | ||||||
Luxshare Precision Industry Co. Ltd., Class A |
9,800 | 38,268 | ||||||
Mcnex Co. Ltd. |
657 | 12,661 | ||||||
MH Development Ltd.* ‡ |
22,000 | — | ||||||
Nan Ya Printed Circuit Board Corp. |
4,000 | 26,255 | ||||||
OFILM Group Co. Ltd., Class A* |
4,700 | 3,014 |
Investments | Shares | Value | ||||||
Electronic Equipment,
Instruments & Components – (continued) |
||||||||
Pan-International Industrial Corp. |
24,000 | $ | 23,723 | |||||
Park Systems Corp. |
200 | 15,402 | ||||||
Partron Co. Ltd. |
19,277 | 110,970 | ||||||
Primax Electronics Ltd. |
160,000 | 268,632 | ||||||
Redington Ltd. |
230,055 | 379,916 | ||||||
Samsung Electro-Mechanics Co. Ltd. |
1,666 | 141,519 | ||||||
Samsung SDI Co. Ltd. |
931 | 481,693 | ||||||
Sang-A Frontec Co. Ltd. |
275 | 4,884 | ||||||
Shanghai Friendess Electronic Technology Corp. Ltd., Class A |
700 | 19,755 | ||||||
Shengyi Technology Co. Ltd., Class A |
4,700 | 8,932 | ||||||
Shenzhen Kaifa Technology Co. Ltd., Class A |
4,700 | 7,367 | ||||||
Shenzhen Kinwong Electronic Co. Ltd., Class A |
5,000 | 13,879 | ||||||
Simplo Technology Co. Ltd. |
5,200 | 41,393 | ||||||
Sinbon Electronics Co. Ltd. |
3,000 | 23,322 | ||||||
SOLUM Co. Ltd.* |
1,802 | 21,822 | ||||||
Solus Advanced Materials Co. Ltd. |
377 | 8,893 | ||||||
Sunny Optical Technology Group Co. Ltd. |
12,200 | 105,761 | ||||||
Supreme Electronics Co. Ltd. |
166,331 | 171,119 | ||||||
Synnex Technology International Corp. |
49,000 | 79,988 | ||||||
Taiwan PCB Techvest Co. Ltd. |
98,000 | 99,148 | ||||||
Taiwan Union Technology Corp. |
99,000 | 134,724 | ||||||
Tianma Microelectronics Co. Ltd., Class A |
9,400 | 11,385 | ||||||
Tong Hsing Electronic Industries Ltd. |
3,022 | 16,225 | ||||||
Tripod Technology Corp. |
14,000 | 38,756 | ||||||
Truly International Holdings Ltd. |
686,000 | 83,895 | ||||||
TXC Corp. |
14,000 | 33,151 | ||||||
Unimicron Technology Corp. |
22,000 | 85,003 | ||||||
Universal Scientific Industrial Shanghai Co. Ltd., Class A |
4,700 | 11,224 | ||||||
VS Industry Bhd. |
137,700 | 24,610 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 251 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment,
Instruments & Components – (continued) |
||||||||
Wah Lee Industrial Corp. |
68,640 | $ | 171,267 | |||||
Walsin Technology Corp. |
9,378 | 22,992 | ||||||
Weikeng Industrial Co. Ltd. |
138,000 | 110,066 | ||||||
Wingtech Technology Co. Ltd., Class A |
3,100 | 20,337 | ||||||
Wintek Corp.* ‡ |
64,000 | — | ||||||
WPG Holdings Ltd. |
49,440 | 67,434 | ||||||
WT Microelectronics Co. Ltd. |
14,000 | 25,330 | ||||||
Wuhan Guide Infrared Co. Ltd., Class A |
9,212 | 14,654 | ||||||
WUS Printed Circuit Kunshan Co. Ltd., Class A |
5,170 | 7,714 | ||||||
Yageo Corp. |
10,347 | 117,848 | ||||||
Zhejiang Dahua Technology Co. Ltd., Class A |
2,900 | 4,601 | ||||||
Zhen Ding Technology Holding Ltd. |
17,150 | 56,417 | ||||||
7,835,227 | ||||||||
Energy Equipment & Services – 0.1% | ||||||||
ADNOC Drilling Co. PJSC |
87,465 | 79,772 | ||||||
Bumi Armada Bhd.* |
1,208,600 | 99,694 | ||||||
China Oilfield Services Ltd., Class A |
5,000 | 11,502 | ||||||
China Oilfield Services Ltd., Class H(a) |
28,000 | 31,532 | ||||||
Dialog Group Bhd. |
51,700 | 22,526 | ||||||
Gulf International Services QSC* |
45,210 | 22,619 | ||||||
Yinson Holdings Bhd. |
35,800 | 16,053 | ||||||
283,698 | ||||||||
Entertainment – 0.7% | ||||||||
37 Interactive Entertainment Network Technology Group Co. Ltd. |
4,700 | 9,331 | ||||||
Alibaba Pictures Group Ltd.* |
540,000 | 19,950 | ||||||
Bilibili, Inc., Class Z* (a) |
3,920 | 33,907 | ||||||
China Ruyi Holdings Ltd.* (a) |
142,799 | 22,375 | ||||||
CJ CGV Co. Ltd.* |
1,732 | 16,415 | ||||||
CJ ENM Co. Ltd. |
140 | 7,214 | ||||||
Com2uSCorp |
133 | 6,639 |
Investments | Shares | Value | ||||||
Entertainment – (continued) | ||||||||
Devsisters Co. Ltd. |
2,254 | $ | 77,219 | |||||
Fire Rock Holdings Ltd.* ‡ (a) |
106,000 | 7,362 | ||||||
Giantstep, Inc.* |
935 | 11,224 | ||||||
HYBE Co. Ltd.* |
364 | 30,920 | ||||||
International Games System Co. Ltd. |
2,000 | 21,817 | ||||||
iQIYI, Inc., ADR* (a) |
13,592 | 27,456 | ||||||
JYP Entertainment Corp. |
489 | 19,053 | ||||||
Kakao Games Corp.* |
956 | 26,544 | ||||||
Kingsoft Corp. Ltd. |
16,000 | 48,409 | ||||||
NCSoft Corp. |
281 | 76,935 | ||||||
Neowiz* |
5,572 | 141,212 | ||||||
NetDragon Websoft Holdings Ltd. |
98,000 | 164,543 | ||||||
NetEase, Inc. |
31,400 | 342,407 | ||||||
Netmarble Corp.(b) |
410 | 12,837 | ||||||
NHN Corp.* |
630 | 10,150 | ||||||
Pearl Abyss Corp.* |
936 | 27,335 | ||||||
Perfect World Co. Ltd., Class A |
4,100 | 6,398 | ||||||
PVR Ltd.* |
1,617 | 34,673 | ||||||
Saregama India Ltd. |
2,498 | 11,329 | ||||||
SM Entertainment Co. Ltd. |
475 | 23,709 | ||||||
SMI Holdings Group Ltd.* ‡ |
72,000 | — | ||||||
Studio Dragon Corp.* |
385 | 18,487 | ||||||
Tencent Music Entertainment Group, ADR* |
7,897 | 28,508 | ||||||
Webzen, Inc.* |
440 | 4,618 | ||||||
Wemade Co. Ltd. |
488 | 15,194 | ||||||
XD, Inc.* (b) |
8,000 | 13,860 | ||||||
XPEC Entertainment, Inc.* ‡ |
14,800 | — | ||||||
YG Entertainment, Inc. |
605 | 18,157 | ||||||
Zhejiang Century Huatong Group Co. Ltd., Class A* |
11,280 | 5,703 | ||||||
1,341,890 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.3% | ||||||||
AREIT, Inc. |
30,000 | 16,048 | ||||||
Axis REIT |
70,600 | 27,924 | ||||||
Concentradora Fibra Danhos SA de CV |
328,309 | 405,238 | ||||||
CPN Retail Growth Leasehold REIT |
44,100 | 21,436 | ||||||
Embassy Office Parks REIT |
9,048 | 37,643 |
See Accompanying Notes to the Financial Statements.
252 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S |
786,989 | $ | 186,564 | |||||
Equites Property Fund Ltd.(a) |
27,560 | 23,545 | ||||||
ESR Kendall Square REIT Co. Ltd. |
3,896 | 9,751 | ||||||
Fibra Uno Administracion SA de CV |
93,100 | 108,442 | ||||||
Fortress REIT Ltd., Class A* |
31,313 | 17,601 | ||||||
Growthpoint Properties Ltd.(a) |
106,428 | 74,996 | ||||||
Hyprop Investments Ltd.* |
138,752 | 279,580 | ||||||
IGB REIT |
6,200 | 2,059 | ||||||
Industrials REIT Ltd. |
16,625 | 24,787 | ||||||
Investec Property Fund Ltd. |
30,397 | 16,871 | ||||||
Is Gayrimenkul Yatirim Ortakligi A/S* |
20,286 | 8,309 | ||||||
JR Global Reit |
7,119 | 21,065 | ||||||
KLCCP Stapled Group |
6,900 | 9,676 | ||||||
Korea Asset In Trust Co. Ltd. |
24,255 | 49,380 | ||||||
LOTTE Reit Co. Ltd. |
1,828 | 4,607 | ||||||
Mindspace Business Parks REIT(b) |
4,100 | 17,597 | ||||||
MREIT, Inc. |
42,200 | 9,146 | ||||||
Pavilion REIT |
15,000 | 3,934 | ||||||
PLA Administradora Industrial S de RL de CV |
303,650 | 424,673 | ||||||
Prologis Property Mexico SA de CV(a) |
27,610 | 70,774 | ||||||
Redefine Properties Ltd. |
244,978 | 54,388 | ||||||
Resilient REIT Ltd.(a) |
129,360 | 360,469 | ||||||
RL Commercial REIT, Inc. |
273,500 | 23,787 | ||||||
Sinpas Gayrimenkul Yatirim Ortakligi A/S* |
212,613 | 61,831 | ||||||
Vukile Property Fund Ltd. |
375,536 | 274,845 | ||||||
Yuexiu REIT |
72,610 | 12,487 | ||||||
2,659,453 | ||||||||
Food & Staples Retailing – 1.1% | ||||||||
Abdullah Al Othaim Markets Co. |
363 | 10,974 | ||||||
Al Meera Consumer Goods Co. QSC |
1,990 | 9,563 | ||||||
Atacadao SA |
13,900 | 51,550 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
Avenue Supermarts Ltd.* (b) |
2,681 | $ | 139,945 | |||||
Berli Jucker PCL |
500 | 450 | ||||||
Berli Jucker PCL, NVDR |
13,800 | 12,419 | ||||||
BGF retail Co. Ltd. |
239 | 31,292 | ||||||
Bid Corp. Ltd. |
5,670 | 91,189 | ||||||
BIM Birlesik Magazalar A/S |
13,261 | 95,521 | ||||||
Cencosud SA |
44,247 | 59,539 | ||||||
Cia Brasileira de Distribuicao* |
66,013 | 277,400 | ||||||
CJ Freshway Corp. |
2,121 | 47,573 | ||||||
Clicks Group Ltd. |
4,165 | 70,540 | ||||||
CP ALL PCL, NVDR |
83,800 | 132,107 | ||||||
DaShenLin Pharmaceutical Group Co. Ltd., Class A |
3,600 | 17,979 | ||||||
Dis-Chem Pharmacies Ltd.(b) |
6,949 | 12,720 | ||||||
Dongsuh Cos., Inc. |
859 | 12,302 | ||||||
E-MART, Inc. |
550 | 32,665 | ||||||
Great Tree Pharmacy Co. Ltd. |
1,257 | 10,552 | ||||||
Grupo Comercial Chedraui SA de CV |
7,056 | 28,389 | ||||||
GS Retail Co. Ltd. |
1,332 | 23,752 | ||||||
Hyundai Greenfood Co. Ltd. |
19,194 | 87,720 | ||||||
InRetail Peru Corp.(b) |
406 | 14,007 | ||||||
Magnit PJSC |
2,296 | — | ||||||
Migros Ticaret A/S* |
6,250 | 40,652 | ||||||
Pick n Pay Stores Ltd. |
6,784 | 21,794 | ||||||
President Chain Store Corp. |
11,000 | 91,489 | ||||||
Puregold Price Club, Inc. |
26,060 | 13,491 | ||||||
Raia Drogasil SA |
19,100 | 95,769 | ||||||
Sendas Distribuidora SA |
14,996 | 56,643 | ||||||
Shoprite Holdings Ltd. |
8,918 | 113,504 | ||||||
Siam Makro PCL, NVDR |
11,400 | 10,783 | ||||||
Sok Marketler Ticaret A/S* |
126,567 | 160,838 | ||||||
SPAR Group Ltd. (The) |
4,873 | 41,299 | ||||||
Sumber Alfaria Trijaya Tbk. PT |
344,600 | 62,303 | ||||||
Sun Art Retail Group Ltd. |
24,000 | 3,822 | ||||||
Wal-Mart de Mexico SAB de CV |
86,100 | 331,968 | ||||||
2,314,503 | ||||||||
Food Products – 2.8% | ||||||||
Agthia Group PJSC |
121,900 | 148,349 | ||||||
Alicorp SAA |
177,240 | 280,119 | ||||||
Almarai Co. JSC |
3,835 | 57,460 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 253 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Anjoy Foods Group Co. Ltd., Class A |
500 | $ | 9,202 | |||||
Astra Agro Lestari Tbk. PT |
20,800 | 11,335 | ||||||
Avanti Feeds Ltd. |
507 | 2,703 | ||||||
AVI Ltd. |
14,737 | 58,916 | ||||||
Balrampur Chini Mills Ltd. |
3,850 | 14,695 | ||||||
Beijing Dabeinong Technology Group Co. Ltd., Class A* |
5,300 | 6,652 | ||||||
Bombay Burmah Trading Co. |
1,061 | 11,193 | ||||||
BRF SA* |
15,300 | 36,623 | ||||||
Britannia Industries Ltd. |
1,949 | 88,684 | ||||||
Century Pacific Food, Inc. |
17,700 | 7,269 | ||||||
Charoen Pokphand Enterprise |
10,300 | 24,198 | ||||||
Charoen Pokphand Foods PCL, NVDR |
108,500 | 71,982 | ||||||
Charoen Pokphand Indonesia Tbk. PT |
119,900 | 42,856 | ||||||
Cherkizovo Group PJSC‡ |
2,594 | — | ||||||
China Feihe Ltd.(a) (b) |
101,000 | 58,157 | ||||||
China Huiyuan Juice Group Ltd.* ‡ |
24,000 | — | ||||||
China Mengniu Dairy Co. Ltd.* |
49,000 | 156,990 | ||||||
China Modern Dairy Holdings Ltd.(a) |
1,043,000 | 106,295 | ||||||
China Youran Dairy Group Ltd.* (a) (b) |
490,000 | 98,626 | ||||||
Chongqing Fuling Zhacai Group Co. Ltd., Class A |
2,400 | 7,402 | ||||||
CJ CheilJedang Corp. |
223 | 64,812 | ||||||
CJ CheilJedang Corp. (Preference) |
104 | 12,083 | ||||||
COFCO Joycome Foods Ltd.* (a) (b) |
1,127,000 | 236,890 | ||||||
Daesang Corp. |
7,869 | 115,733 | ||||||
Dali Foods Group Co. Ltd.(b) |
45,500 | 18,722 | ||||||
Dongwon F&B Co. Ltd. |
522 | 47,273 | ||||||
Dongwon Industries Co. Ltd. |
490 | 79,118 | ||||||
Foshan Haitian Flavouring & Food Co. Ltd., Class A |
4,900 | 40,067 | ||||||
Garudafood Putra Putri Jaya Tbk. PT |
463,100 | 15,439 | ||||||
Genting Plantations Bhd. |
10,400 | 13,462 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Great Wall Enterprise Co. Ltd. |
8,400 | $ | 10,480 | |||||
Gruma SAB de CV, Class B |
3,765 | 43,595 | ||||||
Grupo Bimbo SAB de CV, Series A |
26,400 | 102,028 | ||||||
Grupo Nutresa SA |
2,911 | 31,601 | ||||||
Guangdong Haid Group Co. Ltd., Class A |
3,400 | 26,902 | ||||||
Harim Holdings Co. Ltd. |
3,492 | 17,258 | ||||||
Heilongjiang Agriculture Co. Ltd., Class A |
5,200 | 9,832 | ||||||
Henan Shuanghui Investment & Development Co. Ltd., Class A |
5,000 | 15,606 | ||||||
Huishan Dairy* ‡ |
158,000 | — | ||||||
Indofood CBP Sukses Makmur Tbk. PT |
51,800 | 32,297 | ||||||
Indofood Sukses Makmur Tbk. PT |
127,400 | 52,683 | ||||||
Industrias Bachoco SAB de CV, Series B(a) |
65,444 | 266,768 | ||||||
Inner Mongolia Yili Industrial Group Co. Ltd., Class A |
8,200 | 28,357 | ||||||
IOI Corp. Bhd. |
58,800 | 50,741 | ||||||
Japfa Comfeed Indonesia Tbk. PT |
2,136,400 | 189,704 | ||||||
JBS SA |
19,700 | 93,709 | ||||||
Kuala Lumpur Kepong Bhd. |
10,631 | 48,748 | ||||||
Lien Hwa Industrial Holdings Corp. |
16,170 | 23,360 | ||||||
Lotte Confectionery Co. Ltd. |
1,666 | 152,045 | ||||||
M Dias Branco SA* |
5,200 | 43,108 | ||||||
Maeil Dairies Co. Ltd. |
1,764 | 58,327 | ||||||
Marfrig Global Foods SA |
10,600 | 21,615 | ||||||
Marico Ltd. |
8,820 | 55,891 | ||||||
Mayora Indah Tbk. PT |
83,900 | 12,910 | ||||||
Mezzan Holding Co. KSCC |
47,576 | 55,601 | ||||||
Minerva SA |
102,900 | 268,269 | ||||||
Monde Nissin Corp.(b) |
107,400 | 21,647 | ||||||
Muyuan Foods Co. Ltd., Class A |
7,320 | 46,917 | ||||||
Namchow Holdings Co. Ltd. |
68,000 | 91,377 | ||||||
National Agriculture Development Co. (The)* |
2,623 | 18,219 | ||||||
Nestle India Ltd. |
637 | 156,703 |
See Accompanying Notes to the Financial Statements.
254 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Nestle Malaysia Bhd. |
900 | $ | 25,317 | |||||
New Hope Liuhe Co. Ltd., Class A* |
9,000 | 15,895 | ||||||
NongShim Co. Ltd. |
56 | 11,873 | ||||||
Orion Corp. |
500 | 35,628 | ||||||
Orion Holdings Corp. |
9,136 | 91,716 | ||||||
Ottogi Corp. |
15 | 4,649 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk. PT |
1,195,300 | 86,597 | ||||||
PPB Group Bhd. |
14,080 | 49,733 | ||||||
QL Resources Bhd. |
25,395 | 27,501 | ||||||
Qurain Petrochemical Industries Co. |
15,408 | 12,535 | ||||||
Samyang Corp. |
1,333 | 34,718 | ||||||
Samyang Foods Co. Ltd. |
301 | 23,455 | ||||||
Samyang Holdings Corp. |
2,508 | 108,986 | ||||||
San Miguel Food and Beverage, Inc. |
7,670 | 4,831 | ||||||
Sao Martinho SA |
3,500 | 17,989 | ||||||
Saudia Dairy & Foodstuff Co. |
698 | 43,653 | ||||||
Savola Group (The) |
5,537 | 43,176 | ||||||
Sawit Sumbermas Sarana Tbk. PT |
1,421,000 | 126,635 | ||||||
Shree Renuka Sugars Ltd.* |
30,100 | 19,654 | ||||||
Sime Darby Plantation Bhd. |
54,403 | 50,629 | ||||||
Taiwan TEA Corp.* |
8,000 | 5,102 | ||||||
Tata Consumer Products Ltd. |
10,407 | 96,825 | ||||||
Thai Union Group PCL, NVDR |
82,200 | 38,875 | ||||||
Thaifoods Group PCL, NVDR |
1,119,900 | 164,778 | ||||||
Tiger Brands Ltd. |
3,445 | 34,873 | ||||||
Tingyi Cayman Islands Holding Corp. |
30,000 | 46,931 | ||||||
Toly Bread Co. Ltd., Class A |
7,420 | 11,447 | ||||||
Tongwei Co. Ltd., Class A |
5,500 | 32,780 | ||||||
Tres Tentos Agroindustrial SA |
49,000 | 118,409 | ||||||
Ulker Biskuvi Sanayi A/S* |
57,869 | 81,813 | ||||||
Uni-President China Holdings Ltd. |
49,000 | 36,205 | ||||||
Uni-President Enterprises Corp. |
80,000 | 162,619 | ||||||
Universal Robina Corp. |
13,530 | 28,484 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Want Want China Holdings Ltd. |
98,000 | $ | 64,419 | |||||
Yihai International Holding Ltd.* (a) |
7,000 | 11,521 | ||||||
Yuan Longping High-tech Agriculture Co. Ltd., Class A* |
5,100 | 10,146 | ||||||
Zad Holding Co. |
3,130 | 14,826 | ||||||
Zhou Hei Ya International Holdings Co. Ltd.* (b) |
14,000 | 6,171 | ||||||
5,790,997 | ||||||||
Gas Utilities – 0.6% | ||||||||
Adani Total Gas Ltd. |
4,803 | 209,048 | ||||||
Aygaz A/S |
4,199 | 13,295 | ||||||
Beijing Enterprises Holdings Ltd. |
16,000 | 40,602 | ||||||
China Gas Holdings Ltd. |
88,200 | 78,202 | ||||||
China Resources Gas Group Ltd. |
24,200 | 61,965 | ||||||
Daesung Holdings Co. Ltd. |
300 | 20,787 | ||||||
ENN Energy Holdings Ltd. |
13,300 | 132,240 | ||||||
ENN Natural Gas Co. Ltd., Class A |
10,000 | 21,210 | ||||||
GAIL India Ltd. |
89,964 | 99,226 | ||||||
Grupo Energia Bogota SA ESP |
91,532 | 30,872 | ||||||
Gujarat Gas Ltd. |
2,679 | 16,784 | ||||||
Gujarat State Petronet Ltd. |
13,547 | 37,011 | ||||||
Indraprastha Gas Ltd. |
4,564 | 23,612 | ||||||
Korea Gas Corp. |
999 | 24,406 | ||||||
Kunlun Energy Co. Ltd. |
118,000 | 70,501 | ||||||
Mahanagar Gas Ltd.(b) |
1,456 | 15,156 | ||||||
National Gas & Industrialization Co. |
1,155 | 16,506 | ||||||
Perusahaan Gas Negara Tbk. PT |
311,200 | 39,405 | ||||||
Petronas Gas Bhd. |
14,700 | 53,166 | ||||||
Towngas Smart Energy Co. Ltd.* (a) |
408,000 | 142,933 | ||||||
1,146,927 | ||||||||
Health Care Equipment & Supplies – 0.2% | ||||||||
Dentium Co. Ltd. |
257 | 13,766 | ||||||
DIO Corp.* |
520 | 7,246 | ||||||
Eoflow Co. Ltd.* |
1,734 | 19,599 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 255 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Hartalega Holdings Bhd. |
30,800 | $ | 14,071 | |||||
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A |
5,000 | 22,299 | ||||||
Kangji Medical Holdings Ltd.(a) |
25,000 | 20,223 | ||||||
Kossan Rubber Industries Bhd. |
22,800 | 6,028 | ||||||
Lifetech Scientific Corp.* |
110,000 | 34,472 | ||||||
Microport Cardioflow Medtech Corp.* (a) (b) |
39,000 | 11,824 | ||||||
Microport Scientific Corp.* (a) |
11,498 | 24,285 | ||||||
Poly Medicure Ltd. |
2,864 | 31,878 | ||||||
SD Biosensor, Inc. |
990 | 20,537 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H |
36,000 | 49,621 | ||||||
Sri Trang Gloves Thailand PCL, NVDR |
62,800 | 18,315 | ||||||
St Shine Optical Co. Ltd. |
2,000 | 13,097 | ||||||
Supermax Corp. Bhd. |
681,561 | 139,109 | ||||||
TaiDoc Technology Corp. |
3,000 | 15,828 | ||||||
Top Glove Corp. Bhd. |
120,100 | 20,195 | ||||||
482,393 | ||||||||
Health Care Providers & Services – 0.8% | ||||||||
Al Hammadi Holding |
3,792 | 45,362 | ||||||
Apollo Hospitals Enterprise Ltd. |
1,608 | 87,755 | ||||||
Aster DM Healthcare Ltd.* (b) |
6,324 | 18,893 | ||||||
Bangkok Chain Hospital PCL, NVDR |
20,800 | 10,110 | ||||||
Bangkok Dusit Medical Services PCL, NVDR |
72,000 | 55,807 | ||||||
Bumrungrad Hospital PCL, NVDR |
10,100 | 60,239 | ||||||
Celltrion Healthcare Co. Ltd. |
1,519 | 74,113 | ||||||
Chabiotech Co. Ltd.* |
841 | 7,793 | ||||||
Chularat Hospital PCL, NVDR |
101,400 | 9,431 | ||||||
Cleopatra Hospital* |
57,071 | 9,193 | ||||||
CM Hospitalar SA |
5,000 | 18,191 | ||||||
Dallah Healthcare Co. |
1,193 | 50,926 | ||||||
Diagnosticos da America SA* |
990 | 3,779 | ||||||
Dr Lal PathLabs Ltd.(b) |
430 | 13,314 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
1,411 | $ | 85,091 | |||||
Fleury SA |
3,600 | 12,761 | ||||||
Fortis Healthcare Ltd.* |
11,593 | 38,857 | ||||||
Gushengtang Holdings Ltd.* |
3,200 | 13,575 | ||||||
Hapvida Participacoes e Investimentos SA* (b) |
78,400 | 116,541 | ||||||
HLB Life Science Co. Ltd.* |
3,012 | 25,691 | ||||||
Huadong Medicine Co. Ltd., Class A |
3,300 | 18,506 | ||||||
Hygeia Healthcare Holdings Co. Ltd.* (a) (b) |
6,400 | 27,720 | ||||||
IHH Healthcare Bhd. |
58,800 | 73,997 | ||||||
Jinxin Fertility Group Ltd.(a) (b) |
67,500 | 33,278 | ||||||
KPJ Healthcare Bhd. |
14,124 | 2,450 | ||||||
Krishna Institute of Medical Sciences Ltd.* (b) |
1,650 | 29,607 | ||||||
Life Healthcare Group Holdings Ltd. |
29,257 | 31,442 | ||||||
Max Healthcare Institute Ltd.* |
12,789 | 70,498 | ||||||
Medikaloka Hermina Tbk. PT(b) |
179,700 | 17,166 | ||||||
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A* |
9,400 | 5,499 | ||||||
Metro Healthcare Indonesia Tbk. PT* |
641,300 | 20,969 | ||||||
Metropolis Healthcare Ltd.(b) |
1,540 | 31,474 | ||||||
Mitra Keluarga Karyasehat Tbk. PT(b) |
100,200 | 17,731 | ||||||
Mouwasat Medical Services Co. |
688 | 40,099 | ||||||
Narayana Hrudayalaya Ltd.(b) |
2,750 | 26,293 | ||||||
Netcare Ltd. |
70,667 | 59,910 | ||||||
Odontoprev SA |
5,390 | 8,505 | ||||||
Rede D’Or Sao Luiz SA* (b) |
14,100 | 86,445 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class A |
4,700 | 11,321 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H |
23,500 | 31,853 | ||||||
Siloam International Hospitals Tbk. PT |
165,000 | 11,584 | ||||||
Sinopharm Group Co. Ltd., Class H |
39,200 | 74,706 |
See Accompanying Notes to the Financial Statements.
256 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
Thonburi Healthcare Group PCL, NVDR |
16,500 | $ | 29,263 | |||||
Topchoice Medical Corp., Class A* |
500 | 8,375 | ||||||
Universal Vision Biotechnology Co. Ltd. |
2,100 | 16,097 | ||||||
1,542,210 | ||||||||
Health Care Technology – 0.0%(d) | ||||||||
Yidu Tech, Inc.* (b) |
20,300 | 10,292 | ||||||
Hotels, Restaurants & Leisure – 0.8% | ||||||||
Abu Dhabi National Hotels |
18,200 | 19,498 | ||||||
Alsea SAB de CV* |
24,500 | 46,892 | ||||||
Ananti, Inc.* |
2,798 | 10,391 | ||||||
Asset World Corp. PCL, NVDR |
171,900 | 27,551 | ||||||
Bloomberry Resorts Corp.* |
236,200 | 28,532 | ||||||
Central Plaza Hotel PCL* |
1,600 | 2,134 | ||||||
Central Plaza Hotel PCL, NVDR* |
5,700 | 7,601 | ||||||
China Travel International Investment Hong Kong Ltd.* |
122,000 | 18,961 | ||||||
DoubleUGames Co. Ltd. |
3,673 | 123,641 | ||||||
EIH Ltd.* |
8,250 | 19,320 | ||||||
Genting Bhd. |
68,600 | 64,421 | ||||||
Genting Malaysia Bhd. |
61,100 | 35,409 | ||||||
H World Group Ltd. |
24,500 | 67,103 | ||||||
Haichang Ocean Park Holdings Ltd.* (a) (b) |
27,000 | 23,905 | ||||||
Haidilao International Holding Ltd.* (a) (b) |
21,164 | 31,437 | ||||||
Hana Tour Service, Inc.* |
450 | 15,748 | ||||||
Helens International Holdings Co. Ltd.* (a) |
6,500 | 6,252 | ||||||
Herfy Food Services Co.* |
1,705 | 17,787 | ||||||
Indian Hotels Co. Ltd. |
17,668 | 71,246 | ||||||
Jiumaojiu International Holdings Ltd.(a) (b) |
14,000 | 21,972 | ||||||
Jollibee Foods Corp. |
10,180 | 40,755 | ||||||
Jubilant Foodworks Ltd. |
4,950 | 36,474 | ||||||
Kangwon Land, Inc.* |
2,150 | 34,715 | ||||||
Leejam Sports Co. JSC |
1,155 | 24,314 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Lotte Tour Development Co. Ltd.* |
1,961 | $ | 12,431 | |||||
Magnum Bhd. |
19,594 | 6,506 | ||||||
Minor International PCL, NVDR* |
48,500 | 35,999 | ||||||
MK Restaurants Group PCL, NVDR |
4,800 | 7,346 | ||||||
Nayuki Holdings Ltd.* (a) (b) |
25,000 | 12,835 | ||||||
OPAP SA |
3,937 | 48,250 | ||||||
Paradise Co. Ltd.* |
421 | 4,197 | ||||||
Sapphire Foods India Ltd.* |
800 | 13,986 | ||||||
Seera Group Holding* |
6,600 | 33,513 | ||||||
Shenzhen Overseas Chinese Town Co. Ltd., Class A |
22,200 | 12,775 | ||||||
Sports Toto Bhd. |
367,651 | 140,746 | ||||||
Tongcheng Travel Holdings Ltd.* (b) |
18,800 | 29,314 | ||||||
Travellers International Hotel Group, Inc.* ‡ |
209,900 | — | ||||||
Trip.com Group Ltd.* |
8,650 | 190,855 | ||||||
Tsogo Sun Gaming Ltd. |
39,263 | 24,569 | ||||||
Westlife Development Ltd.* |
3,000 | 27,102 | ||||||
Yum China Holdings, Inc. |
6,993 | 289,161 | ||||||
1,685,644 | ||||||||
Household Durables – 1.2% | ||||||||
Amber Enterprises India Ltd.* |
935 | 23,325 | ||||||
AmTRAN Technology Co. Ltd. |
310,255 | 89,256 | ||||||
Arcelik A/S |
4,982 | 21,063 | ||||||
Bajaj Electricals Ltd. |
2,173 | 30,689 | ||||||
Coway Co. Ltd. |
1,177 | 45,693 | ||||||
Crompton Greaves Consumer Electricals Ltd. |
8,232 | 36,030 | ||||||
Cuckoo Holdings Co. Ltd. |
2,953 | 33,688 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes |
106,731 | 378,331 | ||||||
Dixon Technologies India Ltd.(b) |
691 | 37,703 | ||||||
Ecovacs Robotics Co. Ltd., Class A |
1,500 | 11,982 | ||||||
Gree Electric Appliances, Inc. of Zhuhai, Class A |
14,700 | 57,744 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 257 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Household Durables – (continued) | ||||||||
Haier Smart Home Co. Ltd., Class A |
10,600 | $ | 30,208 | |||||
Haier Smart Home Co. Ltd., Class H |
39,200 | 98,077 | ||||||
Hang Zhou Great Star Industrial Co. Ltd., Class A* |
5,000 | 13,201 | ||||||
Hanssem Co. Ltd. |
303 | 7,966 | ||||||
Kinpo Electronics |
50,000 | 21,957 | ||||||
Konka Group Co. Ltd., Class B |
291,800 | 73,602 | ||||||
LG Electronics, Inc. |
3,383 | 193,796 | ||||||
LG Electronics, Inc. (Preference) |
584 | 16,256 | ||||||
Lock&Lock Co. Ltd. |
728 | 3,118 | ||||||
Merry Electronics Co. Ltd. |
75,235 | 183,753 | ||||||
Midea Group Co. Ltd., Class A |
9,800 | 53,951 | ||||||
MRV Engenharia e Participacoes SA |
117,600 | 228,151 | ||||||
Nien Made Enterprise Co. Ltd. |
2,000 | 15,455 | ||||||
Orient Electric Ltd. |
6,985 | 22,682 | ||||||
PIK Group PJSC* ‡ |
4,646 | — | ||||||
Q Technology Group Co. Ltd.* (a) (b) |
151,000 | 59,632 | ||||||
Sampo Corp. |
98,000 | 71,472 | ||||||
Skyworth Group Ltd. |
490,000 | 179,774 | ||||||
TCL Electronics Holdings Ltd.(a) |
343,000 | 131,085 | ||||||
TCL Technology Group Corp., Class A |
55,700 | 29,840 | ||||||
TTK Prestige Ltd. |
1,825 | 20,532 | ||||||
Vestel Beyaz Esya Sanayi ve Ticaret A/S |
111,934 | 56,440 | ||||||
Vestel Elektronik Sanayi ve Ticaret A/S |
52,381 | 129,806 | ||||||
Whirlpool of India Ltd. |
674 | 12,828 | ||||||
Zinus, Inc. |
3,381 | 74,292 | ||||||
2,493,378 | ||||||||
Household Products – 0.1% | ||||||||
Blue Moon Group Holdings Ltd.(a) (b) |
26,500 | 15,630 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A |
61,100 | 96,226 | ||||||
Unilever Indonesia Tbk. PT |
75,200 | 22,371 |
Investments | Shares | Value | ||||||
Household Products – (continued) | ||||||||
Vinda International Holdings Ltd. |
3,000 | $ | 5,625 | |||||
139,852 | ||||||||
Independent Power and Renewable
Electricity Producers – 1.7% |
||||||||
Aboitiz Power Corp. |
34,200 | 18,679 | ||||||
ACEN Corp. |
208,910 | 22,531 | ||||||
Adani Green Energy Ltd.* |
6,027 | 153,111 | ||||||
Adani Power Ltd.* |
15,897 | 64,316 | ||||||
AES Brasil Energia SA |
93,100 | 175,652 | ||||||
Aksa Enerji Uretim A/S |
8,200 | 18,249 | ||||||
Auren Energia SA |
5,000 | 14,217 | ||||||
Banpu Power PCL, NVDR |
19,300 | 7,556 | ||||||
Canvest Environmental Protection Group Co. Ltd.(a) (b) |
196,000 | 120,598 | ||||||
CGN New Energy Holdings Co. Ltd.(a) |
488,000 | 131,172 | ||||||
CGN Power Co. Ltd., Class A |
44,000 | 15,915 | ||||||
CGN Power Co. Ltd., Class H(b) |
343,000 | 69,475 | ||||||
China Datang Corp. Renewable Power Co. Ltd., Class H(a) |
920,000 | 248,463 | ||||||
China Longyuan Power Group Corp. Ltd., Class H |
58,000 | 66,276 | ||||||
China National Nuclear Power Co. Ltd., Class A |
40,700 | 33,626 | ||||||
China Power International Development Ltd.(a) |
147,000 | 42,509 | ||||||
China Resources Power Holdings Co. Ltd. |
54,000 | 78,559 | ||||||
China Three Gorges Renewables Group Co. Ltd., Class A |
47,000 | 35,869 | ||||||
China Yangtze Power Co. Ltd., Class A |
34,300 | 95,213 | ||||||
Colbun SA |
2,835,278 | 278,507 | ||||||
Datang International Power Generation Co. Ltd., Class H* (a) |
128,000 | 16,306 | ||||||
Electricity Generating PCL, NVDR |
8,900 | 39,870 |
See Accompanying Notes to the Financial Statements.
258 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Independent Power and Renewable
Electricity Producers – (continued) |
||||||||
Energy Absolute PCL, NVDR |
30,900 | $ | 78,346 | |||||
Eneva SA* |
19,600 | 52,966 | ||||||
Engie Brasil Energia SA |
6,350 | 48,673 | ||||||
First Gen Corp. |
29,500 | 7,921 | ||||||
GD Power Development Co. Ltd., Class A* |
42,500 | 25,447 | ||||||
Global Power Synergy PCL, NVDR |
13,700 | 22,317 | ||||||
Guangxi Guiguan Electric Power Co. Ltd., Class A |
15,000 | 12,845 | ||||||
Gulf Energy Development PCL, NVDR |
84,000 | 111,456 | ||||||
Huadian Power International Corp. Ltd., Class A |
26,500 | 19,715 | ||||||
Huadian Power International Corp. Ltd., Class H |
38,000 | 11,424 | ||||||
Huaneng Lancang River Hydropower, Inc., Class A |
15,000 | 13,092 | ||||||
Huaneng Power International, Inc., Class A* |
24,300 | 22,307 | ||||||
Huaneng Power International, Inc., Class H* (a) |
100,000 | 35,797 | ||||||
Hub Power Co. Ltd. (The) |
449,477 | 134,614 | ||||||
Hubei Energy Group Co. Ltd., Class A |
23,500 | 13,459 | ||||||
JSW Energy Ltd. |
8,692 | 35,455 | ||||||
KG Eco Technology Service Co. Ltd. |
6,851 | 45,787 | ||||||
Malakoff Corp. Bhd. |
681,600 | 88,660 | ||||||
Mega First Corp. Bhd. |
259,700 | 180,164 | ||||||
NHPC Ltd. |
79,420 | 40,872 | ||||||
NLC India Ltd. |
95,403 | 88,802 | ||||||
NTPC Ltd. |
143,442 | 299,958 | ||||||
OGK-2 PJSC‡ |
11,431,280 | — | ||||||
Omega Energia SA |
11,994 | 24,572 | ||||||
Ratch Group PCL, NVDR |
8,900 | 9,587 | ||||||
SDIC Power Holdings Co. Ltd., Class A |
23,500 | 32,520 | ||||||
Shamal Az-Zour Al-Oula for the First Phase of Az-Zour Power Plant KSC |
26,687 | 16,628 |
Investments | Shares | Value | ||||||
Independent Power and Renewable
Electricity Producers – (continued) |
||||||||
Shanghai Electric Power Co. Ltd., Class A* |
10,000 | $ | 12,564 | |||||
Shenzhen Energy Group Co. Ltd., Class A |
10,600 | 8,278 | ||||||
Sichuan Chuantou Energy Co. Ltd., Class A |
9,400 | 14,232 | ||||||
Super Energy Corp. PCL, NVDR |
4,764,500 | 87,629 | ||||||
Taiwan Cogeneration Corp. |
23,000 | 20,878 | ||||||
Terna Energy SA |
933 | 17,355 | ||||||
TPI Polene Power PCL, NVDR |
1,062,000 | 93,755 | ||||||
Unipro PJSC‡ |
5,337,000 | — | ||||||
Xinyi Energy Holdings Ltd. |
1,761 | 449 | ||||||
3,475,193 | ||||||||
Industrial Conglomerates – 2.2% | ||||||||
3M India Ltd.* |
69 | 19,412 | ||||||
Aamal Co. |
21,949 | 6,780 | ||||||
Aboitiz Equity Ventures, Inc. |
75,110 | 73,490 | ||||||
AG Anadolu Grubu Holding A/S |
48,734 | 225,425 | ||||||
Alfa SAB de CV, Class A |
78,400 | 51,940 | ||||||
Alliance Global Group, Inc. |
157,700 | 24,437 | ||||||
Alpha Dhabi Holding PJSC* |
41,111 | 274,219 | ||||||
AntarChile SA |
3,206 | 24,291 | ||||||
Astra Industrial Group |
1,827 | 26,742 | ||||||
Ayala Corp. |
4,190 | 48,227 | ||||||
Bidvest Group Ltd. (The) |
5,247 | 60,666 | ||||||
China Baoan Group Co. Ltd., Class A |
5,500 | 8,711 | ||||||
CITIC Ltd. |
196,000 | 175,529 | ||||||
CJ Corp. |
564 | 28,429 | ||||||
DMCI Holdings, Inc. |
121,000 | 19,815 | ||||||
Doosan Co. Ltd. |
574 | 31,189 | ||||||
Dubai Investments PJSC |
16,050 | 9,526 | ||||||
Enka Insaat ve Sanayi A/S |
53,350 | 53,743 | ||||||
Far Eastern New Century Corp. |
121,000 | 120,728 | ||||||
Fosun International Ltd.(a) |
61,500 | 37,606 | ||||||
Godrej Industries Ltd.* |
3,377 | 17,516 | ||||||
Grupo Carso SAB de CV, Series A1(a) |
11,100 | 44,648 | ||||||
GS Holdings Corp. |
2,570 | 82,993 | ||||||
GT Capital Holdings, Inc. |
1,610 | 11,469 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 259 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Industrial Conglomerates – (continued) | ||||||||
Hanwha Corp. |
1,692 | $ | 30,171 | |||||
HAP Seng Consolidated Bhd. |
11,900 | 16,184 | ||||||
Hong Leong Industries Bhd. |
30,600 | 60,190 | ||||||
Hosken Consolidated Investments Ltd.* |
1,886 | 18,473 | ||||||
Hyosung Corp. |
201 | 9,666 | ||||||
Industries Qatar QSC |
31,838 | 137,869 | ||||||
International Holding Co. PJSC* |
8,183 | 897,823 | ||||||
JG Summit Holdings, Inc. |
58,911 | 43,866 | ||||||
KAP Industrial Holdings Ltd. |
952,315 | 239,407 | ||||||
KOC Holding A/S |
28,781 | 86,020 | ||||||
LG Corp. |
3,724 | 207,056 | ||||||
Lotte Corp. |
1,392 | 31,857 | ||||||
LT Group, Inc. |
5,700 | 794 | ||||||
LX Holdings Corp.* |
3,899 | 23,759 | ||||||
Mannai Corp. QSC |
29,204 | 60,946 | ||||||
Multiply Group* |
115,346 | 124,357 | ||||||
Mytilineos SA |
2,685 | 45,060 | ||||||
National Industries Group Holding SAK |
63,551 | 48,009 | ||||||
Quinenco SA |
12,939 | 34,397 | ||||||
Reunert Ltd. |
69,188 | 173,972 | ||||||
Samsung C&T Corp. |
2,554 | 212,467 | ||||||
San Miguel Corp. |
13,510 | 22,427 | ||||||
Shanghai Industrial Holdings Ltd.(a) |
152,000 | 148,324 | ||||||
Siemens Ltd. |
1,335 | 47,183 | ||||||
Sime Darby Bhd. |
76,600 | 36,453 | ||||||
SK, Inc. |
1,162 | 174,571 | ||||||
SM Investments Corp. |
7,590 | 107,400 | ||||||
Sunway Bhd. |
50,749 | 17,174 | ||||||
Turkiye Sise ve Cam Fabrikalari A/S |
48,416 | 86,459 | ||||||
4,619,865 | ||||||||
Insurance – 2.4% | ||||||||
Abu Dhabi National Insurance Co. PSC |
114,074 | 185,721 | ||||||
Allianz Malaysia Bhd. |
24,500 | 69,023 | ||||||
Bangkok Insurance PCL, NVDR |
3,100 | 22,480 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
BB Seguridade Participacoes SA |
19,600 | $ | 110,901 | |||||
Bupa Arabia for Cooperative Insurance Co. |
262 | 13,457 | ||||||
Caixa Seguridade Participacoes S/A |
15,000 | 25,213 | ||||||
Capital Financial Indonesia Tbk. PT* |
325,000 | 15,836 | ||||||
Cathay Financial Holding Co. Ltd. |
261,000 | 306,177 | ||||||
Central Reinsurance Co. Ltd. |
63,000 | 34,802 | ||||||
China Development Financial Holding Corp. |
490,000 | 178,679 | ||||||
China Life Insurance Co. Ltd., Class H |
221,000 | 240,712 | ||||||
China Pacific Insurance Group Co. Ltd., Class A |
19,200 | 50,061 | ||||||
China Pacific Insurance Group Co. Ltd., Class H |
58,800 | 94,831 | ||||||
China Taiping Insurance Holdings Co. Ltd. |
31,800 | 22,038 | ||||||
Co. for Cooperative Insurance (The)* |
974 | 21,955 | ||||||
DB Insurance Co. Ltd. |
1,176 | 46,480 | ||||||
Discovery Ltd.* |
9,230 | 60,380 | ||||||
Fubon Financial Holding Co. Ltd. |
233,575 | 369,690 | ||||||
General Insurance Corp. of India(b) |
39 | 58 | ||||||
Hanwha General Insurance Co. Ltd.* |
26,656 | 68,864 | ||||||
Hanwha Life Insurance Co. Ltd.* |
12,318 | 18,895 | ||||||
HDFC Life Insurance Co. Ltd.(b) |
16,290 | 106,357 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. |
1,262 | 29,502 | ||||||
ICICI Lombard General Insurance Co. Ltd.(b) |
3,611 | 51,037 | ||||||
ICICI Prudential Life Insurance Co. Ltd.(b) |
5,910 | 36,237 | ||||||
Korean Reinsurance Co. |
32,003 | 165,132 | ||||||
Max Financial Services Ltd.* |
2,721 | 23,274 | ||||||
Mercuries & Associates Holding Ltd. |
189,465 | 83,200 |
See Accompanying Notes to the Financial Statements.
260 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Mercuries Life Insurance Co. Ltd.* |
126,094 | $ | 21,444 | |||||
Meritz Fire & Marine Insurance Co. Ltd. |
1,556 | 34,354 | ||||||
Mirae Asset Life Insurance Co. Ltd. |
27,274 | 50,740 | ||||||
Momentum Metropolitan Holdings |
40,751 | 38,096 | ||||||
New China Life Insurance Co. Ltd., Class A |
4,700 | 15,049 | ||||||
New China Life Insurance Co. Ltd., Class H(a) |
28,100 | 44,603 | ||||||
Old Mutual Ltd. |
139,322 | 79,147 | ||||||
PB Fintech Ltd.* |
3,620 | 16,883 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H |
225,000 | 62,199 | ||||||
PICC Property & Casualty Co. Ltd., Class H |
196,000 | 180,773 | ||||||
Ping An Insurance Group Co. of China Ltd., Class A |
24,600 | 121,844 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H(a) |
184,000 | 736,014 | ||||||
Porto Seguro SA |
5,000 | 22,145 | ||||||
Qatar Insurance Co. SAQ |
76,097 | 45,135 | ||||||
Qualitas Controladora SAB de CV(a) |
5,584 | 21,901 | ||||||
Rand Merchant Investment Holdings Ltd.(a) |
21,250 | 32,978 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. |
995 | 139,703 | ||||||
Samsung Life Insurance Co. Ltd. |
2,548 | 120,562 | ||||||
Sanlam Ltd. |
56,265 | 163,613 | ||||||
Santam Ltd. |
723 | 10,006 | ||||||
SBI Life Insurance Co. Ltd.(b) |
7,378 | 112,835 | ||||||
Shin Kong Financial Holding Co. Ltd. |
441,000 | 109,489 | ||||||
Shinkong Insurance Co. Ltd. |
82,000 | 112,099 | ||||||
Sul America SA* |
5,477 | 24,884 | ||||||
Syarikat Takaful Malaysia Keluarga Bhd. |
231,960 | 161,901 | ||||||
Tongyang Life Insurance Co. Ltd. |
13,123 | 47,169 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
ZhongAn Online P&C Insurance Co. Ltd., Class H* (a) (b) |
11,000 | $ | 20,487 | |||||
4,997,045 | ||||||||
Interactive Media & Services – 2.0% | ||||||||
AfreecaTV Co. Ltd. |
275 | 15,367 | ||||||
Autohome, Inc., Class A(a) |
5,200 | 34,645 | ||||||
Baidu, Inc., Class A* |
39,200 | 375,029 | ||||||
Hello Group, Inc., ADR |
52,528 | 246,882 | ||||||
Info Edge India Ltd. |
1,318 | 62,442 | ||||||
JOYY, Inc., ADR |
825 | 20,815 | ||||||
Kakao Corp. |
5,519 | 196,436 | ||||||
Kanzhun Ltd., ADR* |
3,479 | 38,025 | ||||||
Kuaishou Technology* (a) (b) |
34,300 | 141,135 | ||||||
NAVER Corp. |
2,548 | 303,195 | ||||||
Tencent Holdings Ltd. |
103,600 | 2,713,448 | ||||||
Weibo Corp., Class A* |
1,640 | 19,012 | ||||||
4,166,431 | ||||||||
Internet & Direct Marketing Retail – 2.6% | ||||||||
Alibaba Group Holding Ltd.* |
269,500 | 2,109,693 | ||||||
Alibaba Health Information Technology Ltd.* (a) |
84,000 | 35,527 | ||||||
Americanas SA* |
8,118 | 24,042 | ||||||
Bukalapak.com PT Tbk.* |
700,000 | 12,387 | ||||||
Dada Nexus Ltd., ADR* (a) |
2,805 | 8,667 | ||||||
GoTo Gojek Tokopedia Tbk. PT* |
15,596,700 | 185,990 | ||||||
Hyundai Home Shopping Network Corp. |
2,038 | 64,096 | ||||||
JD Health International, Inc.* (a) (b) |
19,600 | 107,490 | ||||||
JD.com, Inc., Class A |
40,451 | 747,714 | ||||||
Maoyan Entertainment* (b) |
22,000 | 12,808 | ||||||
Meituan, Class B* (b) |
68,600 | 1,090,630 | ||||||
momo.com, Inc. |
1,560 | 23,359 | ||||||
Naspers Ltd., Class N |
3,761 | 388,860 | ||||||
Pinduoduo, Inc., ADR* |
9,310 | 510,467 | ||||||
Ping An Healthcare and Technology Co. Ltd.* (a) (b) |
11,000 | 20,291 | ||||||
Vipshop Holdings Ltd., ADR* |
10,878 | 75,820 | ||||||
Zomato Ltd.* |
26,592 | 20,271 | ||||||
5,438,112 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 261 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – 1.8% | ||||||||
Al Moammar Information Systems Co. |
505 | $ | 14,219 | |||||
Arabian Internet & Communications Services Co. |
597 | 39,402 | ||||||
Chinasoft International Ltd.* |
46,000 | 30,472 | ||||||
Chindata Group Holdings Ltd., ADR* (a) |
5,145 | 27,320 | ||||||
Cielo SA* |
426,300 | 483,393 | ||||||
Coforge Ltd. |
858 | 39,487 | ||||||
Computer Age Management Services Ltd. |
1,007 | 31,011 | ||||||
Dagang NeXchange Bhd. |
134,400 | 21,604 | ||||||
Danal Co. Ltd.* |
2,860 | 11,625 | ||||||
DHC Software Co. Ltd., Class A |
9,400 | 7,946 | ||||||
eClerx Services Ltd. |
679 | 10,825 | ||||||
Elm Co. |
546 | 48,097 | ||||||
Fawry for Banking & Payment Technology Services SAE* |
36,652 | 5,964 | ||||||
Firstsource Solutions Ltd. |
6,900 | 8,657 | ||||||
GDS Holdings Ltd., Class A* (a) |
14,700 | 17,790 | ||||||
Happiest Minds Technologies Ltd. |
1,568 | 18,381 | ||||||
HCL Technologies Ltd. |
17,003 | 213,859 | ||||||
Hyundai Autoever Corp. |
212 | 17,636 | ||||||
Infosys Ltd. |
63,406 | 1,177,811 | ||||||
Jasmine Technology Solution PCL, NVDR* |
4,100 | 5,225 | ||||||
Kakaopay Corp.* |
398 | 9,877 | ||||||
Kginicis Co. Ltd. |
7,674 | 69,227 | ||||||
Larsen & Toubro Infotech Ltd.(b) |
682 | 39,051 | ||||||
Locaweb Servicos de Internet SA* (b) |
23,949 | 49,886 | ||||||
Lotte Data Communication Co. |
2,352 | 38,555 | ||||||
Mastek Ltd. |
660 | 13,462 | ||||||
Mindtree Ltd. |
1,083 | 44,532 | ||||||
Mphasis Ltd. |
1,715 | 40,991 | ||||||
My EG Services Bhd. |
87,557 | 16,389 | ||||||
NIIT Ltd. |
4,395 | 14,811 | ||||||
Persistent Systems Ltd. |
884 | 39,439 | ||||||
Posco ICT Co. Ltd. |
2,080 | 8,367 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
Samsung SDS Co. Ltd. |
686 | $ | 60,199 | |||||
Sonata Software Ltd. |
2,854 | 18,047 | ||||||
Systex Corp. |
13,000 | 26,708 | ||||||
Tata Consultancy Services Ltd. |
17,248 | 665,343 | ||||||
Tech Mahindra Ltd. |
10,486 | 134,708 | ||||||
TravelSky Technology Ltd., Class H(a) |
49,000 | 71,161 | ||||||
Wipro Ltd. |
25,521 | 119,177 | ||||||
Yeahka Ltd.* (a) |
13,200 | 30,100 | ||||||
3,740,754 | ||||||||
Leisure Products – 0.2% | ||||||||
Fusheng Precision Co. Ltd. |
41,000 | 230,941 | ||||||
Giant Manufacturing Co. Ltd. |
5,000 | 31,888 | ||||||
GOLFZON Co. Ltd. |
271 | 21,936 | ||||||
HLB, Inc.* |
1,661 | 47,226 | ||||||
Johnson Health Tech Co. Ltd. |
2,000 | 4,487 | ||||||
Merida Industry Co. Ltd. |
5,350 | 29,222 | ||||||
O-TA Precision Industry Co. Ltd. |
26,000 | 73,911 | ||||||
439,611 | ||||||||
Life Sciences Tools & Services – 0.3% | ||||||||
Cellivery Therapeutics, Inc.* |
376 | 3,286 | ||||||
Divi’s Laboratories Ltd. |
2,340 | 102,018 | ||||||
EirGenix, Inc.* |
9,000 | 28,350 | ||||||
Genscript Biotech Corp.* |
20,000 | 50,549 | ||||||
Hangzhou Tigermed Consulting Co. Ltd., Class H(b) |
5,900 | 40,098 | ||||||
LegoChem Biosciences, Inc.* |
1,250 | 29,836 | ||||||
Pharmaron Beijing Co. Ltd., Class H(b) |
7,700 | 25,896 | ||||||
Samsung Biologics Co. Ltd.* (b) |
294 | 181,009 | ||||||
ST Pharm Co. Ltd. |
344 | 20,117 | ||||||
Syngene International Ltd.(b) |
1,400 | 10,677 | ||||||
WuXi AppTec Co. Ltd., Class A |
4,060 | 42,499 | ||||||
WuXi AppTec Co. Ltd., Class H(b) |
6,818 | 54,632 | ||||||
588,967 | ||||||||
Machinery – 1.1% | ||||||||
AIA Engineering Ltd. |
600 | 19,438 | ||||||
Airtac International Group |
2,913 | 66,898 | ||||||
Ashok Leyland Ltd. |
30,502 | 56,488 |
See Accompanying Notes to the Financial Statements.
262 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
BEML Ltd. |
800 | $ | 15,232 | |||||
China CSSC Holdings Ltd., Class A |
10,000 | 36,336 | ||||||
China International Marine Containers Group Co. Ltd., Class H(a) |
23,849 | 15,191 | ||||||
CIMC Enric Holdings Ltd.(a) |
30,000 | 29,236 | ||||||
CNPC Capital Co. Ltd., Class A |
29,200 | 18,003 | ||||||
Creative & Innovative System* |
2,703 | 24,763 | ||||||
Cummins India Ltd. |
2,280 | 37,126 | ||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd.* |
705 | 9,057 | ||||||
Dawonsys Co. Ltd. |
1,869 | 22,437 | ||||||
Doosan Bobcat, Inc. |
1,272 | 29,915 | ||||||
Elgi Equipments Ltd. |
8,864 | 51,897 | ||||||
Escorts Kubota Ltd. |
1,049 | 25,831 | ||||||
GMM Pfaudler Ltd. |
900 | 20,066 | ||||||
Grindwell Norton Ltd. |
1,275 | 32,392 | ||||||
Haitian International Holdings Ltd. |
16,000 | 32,041 | ||||||
Hiwin Technologies Corp. |
5,535 | 28,515 | ||||||
HJ Shipbuilding & Construction Co. Ltd.* |
1,060 | 2,608 | ||||||
Hyundai Construction Equipment Co. Ltd. |
4,263 | 128,688 | ||||||
Hyundai Doosan Infracore Co. Ltd.* |
45,463 | 177,135 | ||||||
Hyundai Elevator Co. Ltd. |
208 | 3,680 | ||||||
Hyundai Heavy Industries Co. Ltd.* |
449 | 34,358 | ||||||
Hyundai Mipo Dockyard Co. Ltd.* |
400 | 25,778 | ||||||
Hyundai Rotem Co. Ltd.* |
1,766 | 30,189 | ||||||
Kinik Co. |
6,000 | 18,993 | ||||||
Korea Shipbuilding & Offshore Engineering Co. Ltd.* |
605 | 30,878 | ||||||
Lakshmi Machine Works Ltd. |
165 | 25,673 | ||||||
LK Technology Holdings Ltd.(a) |
22,000 | 19,927 | ||||||
Lonking Holdings Ltd. |
784,000 | 107,864 | ||||||
Ningbo Deye Technology Co. Ltd., Class A |
500 | 22,413 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Otokar Otomotiv ve Savunma Sanayi A/S |
2,941 | $ | 83,632 | |||||
Pentamaster Corp. Bhd. |
21,200 | 17,398 | ||||||
People & Technology, Inc. |
1,111 | 35,995 | ||||||
Riyue Heavy Industry Co. Ltd., Class A |
5,000 | 15,133 | ||||||
Sam Engineering & Equipment M Bhd. |
64,400 | 72,191 | ||||||
SAM KANG M&T Co. Ltd.* |
1,219 | 17,329 | ||||||
Samsung Heavy Industries Co. Ltd.* |
14,188 | 51,296 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd. |
12,000 | 9,845 | ||||||
Sany Heavy Industry Co. Ltd., Class A |
24,500 | 45,317 | ||||||
Schaeffler India Ltd. |
882 | 29,350 | ||||||
SFA Engineering Corp. |
704 | 18,855 | ||||||
Shin Zu Shing Co. Ltd. |
62,000 | 149,889 | ||||||
Sinotruk Hong Kong Ltd. |
30,500 | 27,198 | ||||||
SKF India Ltd. |
624 | 33,156 | ||||||
Thermax Ltd. |
944 | 24,769 | ||||||
Timken India Ltd. |
605 | 21,930 | ||||||
Turk Traktor ve Ziraat Makineleri A/S |
5,439 | 111,336 | ||||||
UWC Bhd. |
10,600 | 8,295 | ||||||
Weichai Power Co. Ltd., Class A |
17,300 | 21,522 | ||||||
Weichai Power Co. Ltd., Class H |
68,000 | 65,143 | ||||||
XCMG Construction Machinery Co. Ltd., Class A |
18,800 | 11,926 | ||||||
Yangzijiang Shipbuilding Holdings Ltd. |
93,100 | 78,949 | ||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A |
9,400 | 15,957 | ||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class H |
10,000 | 8,573 | ||||||
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A |
17,700 | 12,974 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 263 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H |
29,200 | $ | 9,411 | |||||
2,196,415 | ||||||||
Marine – 0.6% | ||||||||
Cia Sud Americana de Vapores SA |
567,041 | 39,352 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class A |
37,700 | 58,007 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class H |
104,450 | 112,702 | ||||||
Evergreen Marine Corp. Taiwan Ltd. |
33,023 | 140,916 | ||||||
Far-Eastern Shipping Co. plc* ‡ |
302,500 | — | ||||||
HMM Co. Ltd. |
11,025 | 147,831 | ||||||
Korea Line Corp.* |
72,422 | 100,159 | ||||||
MISC Bhd. |
22,400 | 34,254 | ||||||
Orient Overseas International Ltd.(a) |
3,500 | 51,141 | ||||||
Pan Ocean Co. Ltd. |
8,853 | 26,725 | ||||||
Precious Shipping PCL, NVDR |
323,400 | 111,312 | ||||||
Qatar Navigation QSC |
19,070 | 53,622 | ||||||
Regional Container Lines PCL, NVDR |
15,000 | 10,444 | ||||||
Shih Wei Navigation Co. Ltd. |
65,000 | 46,295 | ||||||
Taiwan Navigation Co. Ltd. |
90,000 | 64,939 | ||||||
Temas Tbk. PT |
409,400 | 47,115 | ||||||
Transcoal Pacific Tbk. PT |
32,900 | 21,673 | ||||||
U-Ming Marine Transport Corp. |
14,000 | 15,294 | ||||||
Wan Hai Lines Ltd. |
45,885 | 96,405 | ||||||
Wisdom Marine Lines Co. Ltd. |
11,898 | 19,311 | ||||||
Yang Ming Marine Transport Corp. |
52,000 | 97,149 | ||||||
1,294,646 | ||||||||
Media – 0.3% | ||||||||
Affle India Ltd.* |
1,050 | 14,644 | ||||||
Astro Malaysia Holdings Bhd. |
139,200 | 19,873 | ||||||
Cheil Worldwide, Inc. |
1,074 | 18,435 | ||||||
China Literature Ltd.* (b) |
6,200 | 16,705 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
Echo Marketing, Inc. |
863 | $ | 8,512 | |||||
Elang Mahkota Teknologi Tbk. PT |
686,000 | 67,951 | ||||||
Focus Media Information Technology Co. Ltd., Class A |
23,500 | 14,425 | ||||||
Grupo Televisa SAB, Series CPO(a) |
38,900 | 41,195 | ||||||
Innocean Worldwide, Inc. |
3,399 | 95,805 | ||||||
Media Nusantara Citra Tbk. PT* |
2,781,600 | 146,236 | ||||||
Mobvista, Inc.* (a) (b) |
20,000 | 10,293 | ||||||
MultiChoice Group |
9,555 | 62,407 | ||||||
Plan B Media PCL, NVDR* |
97,500 | 18,060 | ||||||
Saudi Research & Media Group* |
605 | 32,427 | ||||||
Sun TV Network Ltd. |
1,889 | 11,932 | ||||||
Surya Citra Media Tbk. PT |
427,000 | 6,406 | ||||||
Zee Entertainment Enterprises Ltd. |
17,444 | 55,307 | ||||||
640,613 | ||||||||
Metals & Mining – 4.7% | ||||||||
Adaro Minerals Indonesia Tbk. PT* |
120,400 | 13,354 | ||||||
African Rainbow Minerals Ltd. |
3,822 | 53,794 | ||||||
Alrosa PJSC* ‡ |
85,800 | — | ||||||
Aluminum Corp. of China Ltd., Class A |
26,500 | 14,015 | ||||||
Aluminum Corp. of China Ltd., Class H |
124,000 | 35,384 | ||||||
Aneka Tambang Tbk. |
201,400 | 23,823 | ||||||
Angang Steel Co. Ltd., Class H |
38,000 | 7,891 | ||||||
Anglo American Platinum Ltd. |
1,470 | 116,874 | ||||||
AngloGold Ashanti Ltd. |
12,544 | 164,685 | ||||||
APL Apollo Tubes Ltd. |
3,361 | 43,808 | ||||||
ArcelorMittal South Africa Ltd.* |
108,486 | 27,804 | ||||||
Baoshan Iron & Steel Co. Ltd., Class A |
58,800 | 38,751 | ||||||
Beijing Shougang Co. Ltd., Class A |
10,600 | 4,967 | ||||||
Bradespar SA (Preference) |
6,186 | 28,305 | ||||||
Bumi Resources Minerals Tbk. PT* |
1,235,000 | 14,331 | ||||||
CAP SA |
2,756 | 14,743 |
See Accompanying Notes to the Financial Statements.
264 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Century Iron & Steel Industrial Co. Ltd. |
6,000 | $ | 14,338 | |||||
Chifeng Jilong Gold Mining Co. Ltd., Class A* |
5,000 | 12,893 | ||||||
China Gold International Resources Corp. Ltd.(a) |
96,200 | 223,777 | ||||||
China Hongqiao Group Ltd.(a) |
49,000 | 34,769 | ||||||
China Metal Products |
103,000 | 85,667 | ||||||
China Metal Recycling Holdings Ltd.* ‡ |
51,000 | — | ||||||
China Nonferrous Mining Corp. Ltd.(a) |
441,000 | 160,111 | ||||||
China Northern Rare Earth Group High-Tech Co. Ltd., Class A |
5,300 | 17,573 | ||||||
China Oriental Group Co. Ltd. |
490,000 | 68,040 | ||||||
China Steel Corp. |
343,000 | 285,811 | ||||||
China Zhongwang Holdings Ltd.* ‡ |
699,600 | 129,635 | ||||||
Chun Yuan Steel Industry Co. Ltd. |
196,000 | 90,328 | ||||||
Chung Hung Steel Corp. |
23,000 | 14,062 | ||||||
Cia Brasileira de Aluminio |
11,000 | 23,144 | ||||||
Cia Siderurgica Nacional SA |
19,600 | 45,869 | ||||||
Citic Pacific Special Steel Group Co. Ltd., Class A |
10,600 | 23,383 | ||||||
CMOC Group Ltd., Class A |
22,500 | 12,794 | ||||||
CMOC Group Ltd., Class H(a) |
57,000 | 18,371 | ||||||
Dongkuk Steel Mill Co. Ltd. |
2,067 | 16,615 | ||||||
DRDGOLD Ltd.(a) |
186,586 | 96,352 | ||||||
Eregli Demir ve Celik Fabrikalari TAS |
40,376 | 64,461 | ||||||
Ezz Steel Co. SAE |
64,485 | 44,432 | ||||||
Feng Hsin Steel Co. Ltd. |
11,000 | 19,219 | ||||||
Ganfeng Lithium Group Co. Ltd., Class A |
3,080 | 33,346 | ||||||
Ganfeng Lithium Group Co. Ltd., Class H(a) (b) |
7,280 | 49,245 | ||||||
GEM Co. Ltd., Class A |
5,300 | 5,403 | ||||||
Gerdau SA (Preference) |
32,100 | 157,525 | ||||||
Gold Fields Ltd. |
15,014 | 121,313 | ||||||
Grupo Mexico SAB de CV, Series B |
91,113 | 329,722 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Harmony Gold Mining Co. Ltd. |
16,953 | $ | 46,945 | |||||
Henan Shenhuo Coal & Power Co. Ltd., Class A |
5,500 | 10,573 | ||||||
Hesteel Co. Ltd., Class A |
37,600 | 11,179 | ||||||
Hindalco Industries Ltd. |
45,766 | 224,276 | ||||||
Hindustan Copper Ltd. |
16,483 | 20,510 | ||||||
Hsin Kuang Steel Co. Ltd. |
98,000 | 104,014 | ||||||
Hunan Valin Steel Co. Ltd., Class A |
23,500 | 12,879 | ||||||
Hyundai Steel Co. |
2,109 | 41,604 | ||||||
Impala Platinum Holdings Ltd. |
24,775 | 253,581 | ||||||
Industrias CH SAB de CV, Series B* |
1,147 | 12,638 | ||||||
Industrias Penoles SAB de CV(a) |
4,912 | 55,621 | ||||||
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A |
70,500 | 17,001 | ||||||
Inner Mongolia ERDOS Resources Co. Ltd., Class A |
4,480 | 8,544 | ||||||
Inner Mongolia ERDOS Resources Co. Ltd., Class B |
7,420 | 12,940 | ||||||
Jiangxi Copper Co. Ltd., Class A |
9,400 | 19,834 | ||||||
Jiangxi Copper Co. Ltd., Class H |
31,000 | 33,883 | ||||||
Jinchuan Group International Resources Co. Ltd. |
144,000 | 9,539 | ||||||
Jindal Stainless Hisar Ltd.* |
40,929 | 140,917 | ||||||
Jindal Stainless Ltd.* |
66,199 | 113,201 | ||||||
Jindal Steel & Power Ltd. |
12,907 | 71,702 | ||||||
JSW Steel Ltd. |
28,469 | 231,786 | ||||||
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class D |
25,050 | 16,118 | ||||||
KG DONGBUSTEEL |
1,060 | 5,782 | ||||||
KISWIRE Ltd. |
3,524 | 44,407 | ||||||
Korea Zinc Co. Ltd. |
392 | 176,124 | ||||||
Koza Altin Isletmeleri A/S |
2,182 | 22,790 | ||||||
Koza Anadolu Metal Madencilik Isletmeleri A/S* |
74,333 | 127,385 | ||||||
Kumba Iron Ore Ltd. |
1,960 | 36,901 | ||||||
Maanshan Iron & Steel Co. Ltd., Class A |
21,200 | 7,320 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 265 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Maanshan Iron & Steel Co. Ltd., Class H(a) |
22,000 | $ | 3,531 | |||||
Magnitogorsk Iron & Steel Works PJSC‡ |
45,174 | — | ||||||
Merdeka Copper Gold Tbk. PT* |
230,462 | 55,704 | ||||||
Metalurgica Gerdau SA (Preference) |
21,400 | 45,881 | ||||||
Minsur SA |
122,485 | 106,931 | ||||||
MMC Norilsk Nickel PJSC‡ |
2,090 | — | ||||||
MMG Ltd.* (a) |
116,000 | 22,905 | ||||||
National Aluminium Co. Ltd. |
23,045 | 19,543 | ||||||
Nickel Asia Corp. |
269,200 | 22,437 | ||||||
NMDC Ltd. |
32,389 | 39,030 | ||||||
NMDC Ltd.* |
32,389 | 15,064 | ||||||
Northam Platinum Holdings Ltd.* |
7,270 | 68,192 | ||||||
Novolipetsk Steel PJSC‡ |
51,150 | — | ||||||
PMB Technology Bhd. |
20,000 | 17,090 | ||||||
Polyus PJSC* ‡ |
1,155 | — | ||||||
Poongsan Corp. |
7,131 | 130,660 | ||||||
POSCO Holdings, Inc. |
2,303 | 402,574 | ||||||
Press Metal Aluminium Holdings Bhd. |
58,800 | 54,099 | ||||||
Qatar Aluminum Manufacturing Co. |
42,858 | 19,100 | ||||||
Raspadskaya OJSC‡ |
4,240 | — | ||||||
Ratnamani Metals & Tubes Ltd. |
1,291 | 32,150 | ||||||
Royal Bafokeng Platinum Ltd. |
1,450 | 11,651 | ||||||
Sansteel Minguang Co. Ltd. Fujian, Class A |
14,100 | 8,133 | ||||||
Saudi Arabian Mining Co.* |
13,364 | 297,685 | ||||||
Seah Besteel Holdings Corp. |
5,782 | 67,990 | ||||||
SeAH Steel Holdings Corp. |
691 | 65,731 | ||||||
Severstal PAO‡ |
5,995 | — | ||||||
Shandong Gold Mining Co. Ltd., Class A |
5,100 | 12,089 | ||||||
Shandong Gold Mining Co. Ltd., Class H(a) (b) |
13,650 | 21,736 | ||||||
Shandong Nanshan Aluminum Co. Ltd., Class A |
42,400 | 17,893 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Shanxi Taigang Stainless Steel Co. Ltd., Class A |
15,900 | $ | 8,649 | |||||
Shougang Fushan Resources Group Ltd. |
1,372,000 | 372,282 | ||||||
Sibanye Stillwater Ltd. |
79,331 | 186,181 | ||||||
Steel Authority of India Ltd. |
46,172 | 43,898 | ||||||
TA Chen Stainless Pipe |
49,000 | 57,406 | ||||||
Tata Steel Ltd. |
240,100 | 294,551 | ||||||
Tharisa plc(a) |
36,260 | 40,764 | ||||||
Tiangong International Co. Ltd.(a) |
546,000 | 151,631 | ||||||
Tianshan Aluminum Group Co. Ltd., Class A |
10,600 | 9,063 | ||||||
Tung Ho Steel Enterprise Corp. |
17,050 | 26,139 | ||||||
United Co. RUSAL International PJSC‡ |
75,100 | — | ||||||
Usinas Siderurgicas de Minas Gerais SA Usiminas (Preference), Class A |
185,086 | 255,023 | ||||||
Vale Indonesia Tbk. PT* |
58,300 | 24,296 | ||||||
Vale SA |
112,700 | 1,441,813 | ||||||
Vedanta Ltd. |
29,204 | 99,067 | ||||||
Volcan Cia Minera SAA, Class B* |
122,924 | 15,388 | ||||||
VSMPO-AVISMA Corp. PJSC‡ |
53 | — | ||||||
Western Superconducting Technologies Co. Ltd., Class A |
1,500 | 23,976 | ||||||
Xiamen Tungsten Co. Ltd., Class A |
3,900 | 10,730 | ||||||
YC INOX Co. Ltd. |
147,000 | 115,647 | ||||||
Yieh Phui Enterprise Co. Ltd. |
52,500 | 23,299 | ||||||
Young Poong Corp. |
312 | 137,990 | ||||||
Yunnan Aluminium Co. Ltd., Class A |
6,300 | 7,915 | ||||||
Yunnan Copper Co. Ltd., Class A |
9,400 | 14,167 | ||||||
Zhaojin Mining Industry Co. Ltd., Class H* |
31,000 | 25,590 | ||||||
Zhejiang Huayou Cobalt Co. Ltd., Class A |
4,840 | 36,128 | ||||||
Zijin Mining Group Co. Ltd., Class A |
32,900 | 35,701 |
See Accompanying Notes to the Financial Statements.
266 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Zijin Mining Group Co. Ltd., Class H |
98,000 | $ | 93,632 | |||||
9,799,446 | ||||||||
Multiline Retail – 0.2% | ||||||||
Aeon Co. M Bhd. |
57,700 | 16,841 | ||||||
Central Retail Corp. PCL, NVDR |
53,475 | 59,011 | ||||||
El Puerto de Liverpool SAB de CV, Class C1 |
6,185 | 31,646 | ||||||
Falabella SA |
22,688 | 44,347 | ||||||
Golden Eagle Retail Group Ltd.* |
147,000 | 88,951 | ||||||
Hyundai Department Store Co. Ltd. |
224 | 8,507 | ||||||
Lotte Shopping Co. Ltd. |
448 | 27,488 | ||||||
Magazine Luiza SA* |
61,200 | 52,135 | ||||||
MINISO Group Holding Ltd., ADR(a) |
4,450 | 22,695 | ||||||
Mitra Adiperkasa Tbk. PT* |
488,600 | 37,747 | ||||||
Shinsegae, Inc. |
212 | 31,626 | ||||||
V-Mart Retail Ltd. |
484 | 17,601 | ||||||
Woolworths Holdings Ltd. |
17,787 | 61,063 | ||||||
499,658 | ||||||||
Multi-Utilities – 0.0%(d) | ||||||||
Qatar Electricity & Water Co. QSC |
9,126 | 46,360 | ||||||
YTL Power International Bhd. |
1,531 | 228 | ||||||
46,588 | ||||||||
Oil, Gas & Consumable Fuels – 5.3% | ||||||||
3R Petroleum Oleo E Gas SA* |
68,600 | 607,918 | ||||||
Adaro Energy Indonesia Tbk. PT |
382,100 | 97,500 | ||||||
Aegis Logistics Ltd. |
7,388 | 27,748 | ||||||
AKR Corporindo Tbk. PT |
140,000 | 14,002 | ||||||
Aldrees Petroleum and Transport Services Co. |
1,760 | 34,005 | ||||||
Bangchak Corp. PCL, NVDR |
27,400 | 21,958 | ||||||
Banpu PCL, NVDR |
93,200 | 30,610 | ||||||
Bashneft PJSC‡ |
1,305 | — | ||||||
Bashneft PJSC (Preference)‡ |
1,163 | — |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Bayan Resources Tbk. PT |
22,600 | $ | 106,498 | |||||
Bharat Petroleum Corp. Ltd. |
28,410 | 104,216 | ||||||
Bukit Asam Tbk. PT |
106,000 | 26,572 | ||||||
China Coal Energy Co. Ltd., Class A |
16,100 | 19,456 | ||||||
China Coal Energy Co. Ltd., Class H |
49,000 | 36,080 | ||||||
China Petroleum & Chemical Corp., Class A |
104,900 | 58,497 | ||||||
China Petroleum & Chemical Corp., Class H |
752,000 | 296,974 | ||||||
China Shenhua Energy Co. Ltd., Class A |
19,600 | 75,273 | ||||||
China Shenhua Energy Co. Ltd., Class H |
98,000 | 257,801 | ||||||
China Suntien Green Energy Corp. Ltd., Class H(a) |
50,000 | 18,981 | ||||||
Coal India Ltd. |
65,072 | 193,343 | ||||||
Cosan SA |
35,464 | 113,950 | ||||||
COSCO SHIPPING Energy Transportation Co. Ltd., Class A* |
8,600 | 19,925 | ||||||
Dana Gas PJSC |
1,351,824 | 345,956 | ||||||
Ecopetrol SA |
146,461 | 73,483 | ||||||
Empresas Copec SA |
10,437 | 71,901 | ||||||
Enauta Participacoes SA |
30,201 | 87,715 | ||||||
Esso Thailand PCL, NVDR |
431,100 | 164,239 | ||||||
Exxaro Resources Ltd. |
6,125 | 68,164 | ||||||
Formosa Petrochemical Corp. |
29,000 | 74,699 | ||||||
Gazprom PJSC‡ |
412,500 | — | ||||||
Guanghui Energy Co. Ltd., Class A |
15,100 | 21,268 | ||||||
HD Hyundai Co. Ltd. |
1,505 | 64,344 | ||||||
Helleniq Energy Holdings SA |
3,199 | 21,848 | ||||||
Hibiscus Petroleum Bhd. |
685,600 | 140,658 | ||||||
Hindustan Petroleum Corp. Ltd. |
14,504 | 37,470 | ||||||
Indian Oil Corp. Ltd. |
107,751 | 88,841 | ||||||
Indika Energy Tbk. PT |
641,200 | 134,016 | ||||||
Indo Tambangraya Megah Tbk. PT |
16,200 | 46,790 | ||||||
Inner Mongolia Dian Tou Energy Corp. Ltd., Class A |
5,300 | 8,968 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B |
413,600 | 584,830 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 267 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Inner Mongolia Yitai Coal Co. Ltd., Class H |
64,800 | $ | 77,184 | |||||
IRPC PCL, NVDR |
242,000 | 19,965 | ||||||
LUKOIL PJSC‡ |
12,265 | — | ||||||
Mangalore Refinery & Petrochemicals Ltd.* |
75,900 | 49,559 | ||||||
Mari Petroleum Co. Ltd. |
1,984 | 15,150 | ||||||
Medco Energi Internasional Tbk. PT |
2,717,040 | 201,198 | ||||||
MOL Hungarian Oil & Gas plc |
13,034 | 78,033 | ||||||
Motor Oil Hellas Corinth Refineries SA |
2,658 | 45,658 | ||||||
Novatek PJSC‡ |
20,020 | — | ||||||
Oil & Natural Gas Corp. Ltd. |
112,504 | 182,189 | ||||||
Oil India Ltd. |
12,376 | 28,855 | ||||||
Pakistan Oilfields Ltd. |
55,027 | 96,373 | ||||||
Pakistan Petroleum Ltd. |
29,830 | 6,977 | ||||||
Pakistan State Oil Co. Ltd. |
124,664 | 79,344 | ||||||
Petro Rio SA* |
12,693 | 85,608 | ||||||
PetroChina Co. Ltd., Class H |
654,000 | 249,941 | ||||||
Petroleo Brasileiro SA |
112,700 | 714,356 | ||||||
Petroleo Brasileiro SA (Preference) |
137,200 | 779,443 | ||||||
Petronas Dagangan Bhd. |
6,600 | 30,264 | ||||||
Petronet LNG Ltd. |
25,624 | 63,629 | ||||||
Petroreconcavo SA |
44,100 | 263,562 | ||||||
PTT Exploration & Production PCL |
469 | 2,224 | ||||||
PTT Exploration & Production PCL, NVDR |
45,931 | 219,035 | ||||||
PTT PCL, NVDR |
260,900 | 246,779 | ||||||
Qatar Fuel QSC |
8,595 | 45,031 | ||||||
Qatar Gas Transport Co. Ltd. |
54,208 | 61,029 | ||||||
Rabigh Refining & Petrochemical Co.* |
5,254 | 19,072 | ||||||
Reliance Industries Ltd. |
58,751 | 1,809,568 | ||||||
Rosneft Oil Co. PJSC‡ |
74,042 | — | ||||||
Saudi Arabian Oil Co.(b) |
36,317 | 337,311 | ||||||
Semirara Mining & Power Corp. |
42,200 | 25,451 | ||||||
Shaanxi Coal Industry Co. Ltd., Class A |
24,500 | 66,666 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Shan Xi Hua Yang Group New Energy Co. Ltd., Class A |
10,000 | $ | 23,141 | |||||
Shanxi Coking Coal Energy Group Co. Ltd., Class A |
16,900 | 26,374 | ||||||
Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A |
11,100 | 25,535 | ||||||
Siamgas & Petrochemicals PCL, NVDR |
226,500 | 61,892 | ||||||
SK Discovery Co. Ltd. |
261 | 5,442 | ||||||
SK Gas Ltd. |
1,164 | 93,156 | ||||||
SK Innovation Co. Ltd.* |
907 | 110,156 | ||||||
S-Oil Corp. |
1,362 | 82,612 | ||||||
Star Petroleum Refining PCL, NVDR |
33,500 | 10,474 | ||||||
Surgutneftegas PJSC‡ |
319,000 | — | ||||||
Surgutneftegas PJSC (Preference)‡ |
225,500 | — | ||||||
Tatneft PJSC‡ |
26,900 | — | ||||||
Tatneft PJSC (Preference)‡ |
3,870 | — | ||||||
Thai Oil PCL, NVDR |
17,902 | 25,635 | ||||||
Thungela Resources Ltd. |
4,116 | 64,640 | ||||||
Transneft PJSC (Preference)‡ |
55 | — | ||||||
Turkiye Petrol Rafinerileri A/S* |
2,915 | 59,386 | ||||||
Ultrapar Participacoes SA |
21,538 | 55,043 | ||||||
United Tractors Tbk. PT |
39,200 | 81,177 | ||||||
Yankuang Energy Group Co. Ltd., Class A |
5,300 | 29,482 | ||||||
Yankuang Energy Group Co. Ltd., Class H |
46,000 | 129,506 | ||||||
10,979,602 | ||||||||
Paper & Forest Products – 0.5% | ||||||||
Century Plyboards India Ltd. |
3,256 | 23,526 | ||||||
Century Textiles & Industries Ltd. |
2,118 | 21,907 | ||||||
Empresas CMPC SA |
25,344 | 40,199 | ||||||
Indah Kiat Pulp & Paper Tbk. PT |
85,800 | 52,808 | ||||||
Lee & Man Paper Manufacturing Ltd. |
862,000 | 261,350 | ||||||
Longchen Paper & Packaging Co. Ltd. |
298,000 | 137,336 | ||||||
Nine Dragons Paper Holdings Ltd. |
53,000 | 31,396 |
See Accompanying Notes to the Financial Statements.
268 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – (continued) | ||||||||
Pabrik Kertas Tjiwi Kimia Tbk. PT |
53,800 | $ | 26,904 | |||||
Sappi Ltd.* |
15,650 | 48,251 | ||||||
Shandong Chenming Paper Holdings Ltd., Class H* (a) |
154,000 | 43,552 | ||||||
Shandong Sun Paper Industry JSC Ltd., Class A |
9,400 | 13,510 | ||||||
Suzano SA |
24,500 | 248,397 | ||||||
Ta Ann Holdings Bhd. |
93,900 | 78,449 | ||||||
YFY, Inc. |
47,000 | 37,267 | ||||||
1,064,852 | ||||||||
Personal Products – 0.5% | ||||||||
Amorepacific Corp. |
541 | 35,207 | ||||||
AMOREPACIFIC Group |
611 | 10,595 | ||||||
Colgate-Palmolive India Ltd. |
2,295 | 45,240 | ||||||
Cosmax, Inc. |
107 | 3,440 | ||||||
Dabur India Ltd. |
10,829 | 72,566 | ||||||
Emami Ltd. |
4,717 | 27,013 | ||||||
Gillette India Ltd. |
103 | 6,399 | ||||||
Godrej Consumer Products Ltd.* |
7,252 | 72,654 | ||||||
Grape King Bio Ltd. |
7,000 | 26,395 | ||||||
Hengan International Group Co. Ltd. |
18,000 | 69,823 | ||||||
Hindustan Unilever Ltd. |
15,239 | 469,573 | ||||||
Hyundai Bioscience Co. Ltd.* |
1,568 | 23,557 | ||||||
Kolmar Korea Co. Ltd. |
142 | 3,414 | ||||||
LG H&H Co. Ltd. |
147 | 52,631 | ||||||
LG H&H Co. Ltd. (Preference) |
43 | 8,467 | ||||||
Microbio Co. Ltd. |
16,461 | 27,688 | ||||||
Natura & Co. Holding SA |
10,958 | 31,221 | ||||||
Procter & Gamble Hygiene & Health Care Ltd. |
200 | 34,036 | ||||||
TCI Co. Ltd. |
1,000 | 3,336 | ||||||
1,023,255 | ||||||||
Pharmaceuticals – 1.4% | ||||||||
Aarti Pharmalabs Ltd.* |
1,096 | 5,020 | ||||||
Adcock Ingram Holdings Ltd. |
2,912 | 7,557 | ||||||
Ajanta Pharma Ltd. |
576 | 9,011 | ||||||
Alembic Pharmaceuticals Ltd. |
3,400 | 22,595 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Alkem Laboratories Ltd. |
516 | $ | 19,668 | |||||
Apeloa Pharmaceutical Co. Ltd., Class A |
4,700 | 13,407 | ||||||
Aspen Pharmacare Holdings Ltd. |
6,909 | 56,866 | ||||||
AstraZeneca Pharma India Ltd. |
235 | 9,367 | ||||||
Asymchem Laboratories Tianjin Co. Ltd., Class A |
700 | 13,733 | ||||||
Aurobindo Pharma Ltd. |
5,645 | 36,699 | ||||||
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.(a) |
5,000 | 5,586 | ||||||
Binex Co. Ltd.* |
1,942 | 15,201 | ||||||
Bukwang Pharmaceutical Co. Ltd. |
1,431 | 7,585 | ||||||
CanSino Biologics, Inc., Class A |
318 | 8,263 | ||||||
CanSino Biologics, Inc., Class H(a) (b) |
800 | 7,440 | ||||||
Celltrion Pharm, Inc.* |
130 | 6,188 | ||||||
Center Laboratories, Inc. |
10,414 | 14,075 | ||||||
Changchun High & New Technology Industry Group, Inc., Class A |
600 | 13,309 | ||||||
China Medical System Holdings Ltd. |
43,000 | 46,945 | ||||||
China Resources Pharmaceutical Group Ltd.(a) (b) |
50,000 | 33,759 | ||||||
China Traditional Chinese Medicine Holdings Co. Ltd.(a) |
88,000 | 38,003 | ||||||
Chong Kun Dang Pharmaceutical Corp. |
102 | 6,015 | ||||||
Cipla Ltd. |
8,967 | 126,460 | ||||||
CSPC Pharmaceutical Group Ltd. |
146,080 | 150,177 | ||||||
Daewoong Co. Ltd. |
339 | 4,914 | ||||||
Daewoong Pharmaceutical Co. Ltd. |
49 | 5,555 | ||||||
Dong-A Socio Holdings Co. Ltd. |
1,686 | 120,729 | ||||||
Dong-A ST Co. Ltd. |
94 | 3,596 | ||||||
DongKook Pharmaceutical Co. Ltd. |
950 | 10,471 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 269 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Dr Reddy’s Laboratories Ltd. |
2,141 | $ | 114,675 | |||||
Foresee Pharmaceuticals Co. Ltd.* |
5,000 | 11,405 | ||||||
Genomma Lab Internacional SAB de CV, Class B |
31,531 | 24,257 | ||||||
Gland Pharma Ltd.* (b) |
971 | 20,931 | ||||||
GlaxoSmithKline Pharmaceuticals Ltd. |
1,140 | 18,969 | ||||||
Glenmark Pharmaceuticals Ltd. |
8,121 | 39,689 | ||||||
Grand Pharmaceutical Group Ltd.(a) |
465,500 | 199,250 | ||||||
Granules India Ltd. |
5,750 | 25,885 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A |
5,000 | 18,490 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H(a) |
12,000 | 26,752 | ||||||
Hanall Biopharma Co. Ltd.* |
919 | 9,161 | ||||||
Hanmi Pharm Co. Ltd. |
99 | 17,584 | ||||||
Hanmi Science Co. Ltd. |
658 | 14,805 | ||||||
Hansoh Pharmaceutical Group Co. Ltd.(b) |
16,000 | 24,704 | ||||||
HK inno N Corp. |
644 | 16,434 | ||||||
Hua Han Health Industry Holdings Ltd.* ‡ |
3,780,000 | — | ||||||
Hypera SA* |
7,300 | 70,687 | ||||||
Ilyang Pharmaceutical Co. Ltd. |
795 | 9,934 | ||||||
Ipca Laboratories Ltd. |
3,080 | 33,677 | ||||||
JB Chemicals & Pharmaceuticals Ltd. |
1,609 | 38,360 | ||||||
Jiangsu Hengrui Medicine Co. Ltd., Class A |
8,400 | 46,266 | ||||||
Joincare Pharmaceutical Group Industry Co. Ltd., Class A |
4,700 | 7,528 | ||||||
Jubilant Pharmova Ltd. |
4,141 | 18,362 | ||||||
JW Pharmaceutical Corp. |
243 | 3,199 | ||||||
Kalbe Farma Tbk. PT |
365,800 | 48,078 | ||||||
Komipharm International Co. Ltd.* |
1,425 | 7,183 | ||||||
Korea United Pharm, Inc. |
636 | 10,626 | ||||||
Laurus Labs Ltd.(b) |
8,132 | 44,655 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Livzon Pharmaceutical Group, Inc., Class H |
3,930 | $ | 10,288 | |||||
Lotus Pharmaceutical Co. Ltd.* |
2,000 | 9,590 | ||||||
Lupin Ltd. |
4,620 | 39,013 | ||||||
Luye Pharma Group Ltd.* (b) |
29,000 | 7,056 | ||||||
Mega Lifesciences PCL, NVDR |
16,800 | 19,532 | ||||||
Mezzion Pharma Co. Ltd.* |
636 | 5,849 | ||||||
Natco Pharma Ltd. |
4,680 | 33,965 | ||||||
Oneness Biotech Co. Ltd.* |
3,000 | 21,227 | ||||||
Oscotec, Inc.* |
1,510 | 19,293 | ||||||
Pfizer Ltd. |
341 | 18,035 | ||||||
Pharmally International Holding Co. Ltd.* ‡ |
2,564 | 3,378 | ||||||
Procter & Gamble Health Ltd. |
400 | 19,488 | ||||||
Reyon Pharmaceutical Co. Ltd. |
1,045 | 14,085 | ||||||
Richter Gedeon Nyrt. |
2,074 | 40,889 | ||||||
Sam Chun Dang Pharm Co. Ltd.* |
890 | 19,088 | ||||||
Sanofi India Ltd. |
163 | 11,052 | ||||||
Shandong Buchang Pharmaceuticals Co. Ltd., Class A |
4,700 | 12,351 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A |
3,800 | 17,197 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H(a) |
8,000 | 20,199 | ||||||
Shin Poong Pharmaceutical Co. Ltd.* |
432 | 6,566 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. |
125,000 | 10,669 | ||||||
Sino Biopharmaceutical Ltd. |
175,999 | 85,423 | ||||||
SK Biopharmaceuticals Co. Ltd.* |
330 | 13,460 | ||||||
SSY Group Ltd. |
44,000 | 18,217 | ||||||
Sun Pharmaceutical Industries Ltd. |
18,057 | 221,825 | ||||||
Suven Pharmaceuticals Ltd. |
3,735 | 17,974 | ||||||
Torrent Pharmaceuticals Ltd. |
1,434 | 28,584 | ||||||
TTY Biopharm Co. Ltd. |
11,000 | 25,569 | ||||||
United Laboratories International Holdings Ltd. (The)(a) |
392,000 | 164,294 |
See Accompanying Notes to the Financial Statements.
270 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Yuhan Corp. |
1,025 | $ | 43,031 | |||||
Yungjin Pharmaceutical Co. Ltd.* |
1,602 | 3,059 | ||||||
Yunnan Baiyao Group Co. Ltd., Class A |
1,540 | 11,512 | ||||||
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A |
700 | 21,867 | ||||||
Zhejiang Huahai Pharmaceutical Co. Ltd., Class A |
4,700 | 12,918 | ||||||
Zhejiang NHU Co. Ltd., Class A |
6,768 | 16,617 | ||||||
Zydus Lifesciences Ltd. |
4,844 | 25,359 | ||||||
2,808,259 | ||||||||
Professional Services – 0.1% | ||||||||
Boa Vista Servicos SA |
12,500 | 15,008 | ||||||
CTOS Digital Bhd. |
84,900 | 25,319 | ||||||
L&T Technology Services Ltd.(b) |
689 | 29,456 | ||||||
NICE Information Service Co. Ltd. |
2,317 | 21,146 | ||||||
Quess Corp. Ltd.(b) |
3,339 | 22,298 | ||||||
Sporton International, Inc. |
5,000 | 31,345 | ||||||
TeamLease Services Ltd.* |
400 | 14,068 | ||||||
158,640 | ||||||||
Real Estate Management & Development – 3.2% | ||||||||
Agile Group Holdings Ltd.* (a) |
588,000 | 111,610 | ||||||
Aldar Properties PJSC |
67,345 | 79,207 | ||||||
Aliansce Sonae Shopping Centers sa |
5,300 | 21,948 | ||||||
A-Living Smart City Services Co. Ltd.(a) (b) |
13,250 | 7,511 | ||||||
AP Thailand PCL, NVDR |
84,000 | 21,629 | ||||||
Arabian Centres Co. Ltd. |
676 | 3,508 | ||||||
Arriyadh Development Co. |
2,145 | 11,588 | ||||||
Ayala Land, Inc. |
83,300 | 36,655 | ||||||
Barwa Real Estate Co. |
65,237 | 60,906 | ||||||
BR Malls Participacoes SA |
30,900 | 59,771 | ||||||
Brigade Enterprises Ltd. |
4,730 | 28,545 | ||||||
C&D International Investment Group Ltd.(a) |
16,587 | 25,779 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Cencosud Shopping SA |
193,942 | $ | 212,022 | |||||
Central Pattana PCL, NVDR |
26,500 | 47,868 | ||||||
China Aoyuan Group Ltd.* ‡ (a) |
713,000 | 58,949 | ||||||
China Dili Group* (a) |
100,000 | 8,408 | ||||||
China Evergrande Group* (a) |
66,000 | 5,161 | ||||||
China Jinmao Holdings Group Ltd. |
196,000 | 25,967 | ||||||
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A |
18,800 | 33,769 | ||||||
China Overseas Grand Oceans Group Ltd.(a) |
490,000 | 138,576 | ||||||
China Overseas Land & Investment Ltd. |
111,000 | 211,823 | ||||||
China Overseas Property Holdings Ltd. |
30,000 | 18,879 | ||||||
China Resources Land Ltd. |
88,000 | 275,776 | ||||||
China Resources Mixc Lifestyle Services Ltd.(b) |
10,000 | 29,300 | ||||||
China Vanke Co. Ltd., Class A |
19,600 | 36,307 | ||||||
China Vanke Co. Ltd., Class H |
52,100 | 66,902 | ||||||
Chong Hong Construction Co. Ltd. |
85,000 | 187,555 | ||||||
CIFI Ever Sunshine Services Group Ltd.(b) |
10,000 | 2,204 | ||||||
CIFI Holdings Group Co. Ltd.(a) |
145,553 | 9,642 | ||||||
Ciputra Development Tbk. PT |
179,449 | 10,815 | ||||||
Commercial Real Estate Co. KSC |
591,035 | 189,856 | ||||||
Corp. Inmobiliaria Vesta SAB de CV(a) |
23,200 | 50,330 | ||||||
Country Garden Holdings Co. Ltd.(a) |
214,813 | 27,639 | ||||||
Country Garden Services Holdings Co. Ltd. |
30,887 | 26,992 | ||||||
Da-Li Development Co. Ltd. |
113,000 | 92,406 | ||||||
Dar Al Arkan Real Estate Development Co.* |
11,948 | 42,672 | ||||||
DLF Ltd. |
11,270 | 52,485 | ||||||
Dongwon Development Co. Ltd. |
16,415 | 41,025 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 271 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Eco World Development Group Bhd. |
66,000 | $ | 8,445 | |||||
Emaar Development PJSC* |
15,780 | 18,388 | ||||||
Emaar Economic City* |
9,847 | 25,131 | ||||||
Emaar Properties PJSC |
115,724 | 190,928 | ||||||
Evergrande Property Services Group Ltd.* ‡ (b) |
78,500 | — | ||||||
Gemdale Corp., Class A |
14,100 | 15,107 | ||||||
Gemdale Properties & Investment Corp. Ltd.(a) |
2,156,000 | 118,102 | ||||||
Godrej Properties Ltd.* |
2,621 | 39,991 | ||||||
Greentown China Holdings Ltd. |
25,000 | 23,790 | ||||||
Greentown Service Group Co. Ltd.(a) (b) |
30,000 | 12,306 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H* (a) |
609,600 | 83,094 | ||||||
Hanson International Tbk. PT* ‡ |
2,409,275 | — | ||||||
Highwealth Construction Corp. |
35,753 | 45,992 | ||||||
Hopson Development Holdings Ltd.(a) |
28,686 | 23,022 | ||||||
Huaku Development Co. Ltd. |
88,000 | 235,140 | ||||||
Huijing Holdings Co. Ltd. |
102,000 | 585 | ||||||
IOI Properties Group Bhd.* |
52,800 | 11,503 | ||||||
JHSF Participacoes SA |
127,576 | 178,457 | ||||||
Jinke Properties Group Co. Ltd., Class A* |
14,100 | 3,419 | ||||||
Kaisa Group Holdings Ltd.* ‡ |
119,714 | 7,046 | ||||||
KE Holdings, Inc., ADR* |
11,270 | 114,729 | ||||||
Kindom Development Co. Ltd. |
147,400 | 110,244 | ||||||
King’s Town Construction Co. Ltd.* |
2,000 | 2,120 | ||||||
Korea Real Estate Investment & Trust Co. Ltd. |
46,140 | 44,214 | ||||||
KWG Group Holdings Ltd.* (a) |
485,500 | 47,005 | ||||||
LAMDA Development SA* |
1,368 | 8,288 | ||||||
Logan Group Co. Ltd. |
29,000 | 1,182 | ||||||
Longfor Group Holdings Ltd.(c) |
49,000 | 62,422 | ||||||
LSR Group PJSC* ‡ |
21,295 | — | ||||||
Mabanee Co. KPSC |
13,622 | 38,348 | ||||||
Macrotech Developers Ltd.* (b) |
825 | 9,868 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
MAS P.L.C. |
18,975 | $ | 20,774 | |||||
MBK PCL, NVDR |
30,344 | 14,989 | ||||||
Megaworld Corp. |
444,200 | 15,944 | ||||||
Midea Real Estate Holding Ltd.(a) (b) |
107,800 | 75,255 | ||||||
Multiplan Empreendimentos Imobiliarios SA* |
5,000 | 25,118 | ||||||
National Real Estate Co. KPSC* |
11,418 | 5,161 | ||||||
NEPI Rockcastle NV |
10,206 | 51,370 | ||||||
Oberoi Realty Ltd. |
2,915 | 32,561 | ||||||
Origin Property PCL, NVDR |
413,100 | 110,710 | ||||||
OSK Holdings Bhd. |
406,700 | 76,557 | ||||||
Pakuwon Jati Tbk. PT |
534,400 | 15,007 | ||||||
Phoenix Mills Ltd. (The) |
1,600 | 27,599 | ||||||
Poly Developments and Holdings Group Co. Ltd., Class A |
29,400 | 55,589 | ||||||
Poly Property Group Co. Ltd.(a) |
784,000 | 122,846 | ||||||
Powerlong Real Estate Holdings Ltd. |
587,000 | 47,858 | ||||||
Prestige Estates Projects Ltd. |
3,219 | 17,188 | ||||||
Prince Housing & Development Corp. |
50,000 | 15,983 | ||||||
Pruksa Holding PCL, NVDR |
259,500 | 81,818 | ||||||
Quality Houses PCL, NVDR |
1,821,400 | 103,369 | ||||||
Radiance Holdings Group Co. Ltd.(a) (b) |
273,000 | 112,680 | ||||||
Redco Properties Group Ltd.* (a) (b) |
322,000 | 68,503 | ||||||
Redsun Properties Group Ltd.* (a) |
391,000 | 22,414 | ||||||
RiseSun Real Estate Development Co. Ltd., Class A* |
9,400 | 2,576 | ||||||
Robinsons Land Corp. |
23,506 | 6,019 | ||||||
Ruentex Development Co. Ltd. |
32,400 | 39,818 | ||||||
Salhia Real Estate Co. KSCP |
15,502 | 23,322 | ||||||
Saudi Real Estate Co.* |
3,478 | 11,644 | ||||||
Seazen Group Ltd.* (a) |
83,808 | 13,452 | ||||||
Seazen Holdings Co. Ltd., Class A* |
4,700 | 8,494 | ||||||
S-Enjoy Service Group Co. Ltd.* |
109,000 | 49,988 |
See Accompanying Notes to the Financial Statements.
272 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B |
112,400 | $ | 96,889 | |||||
Shanghai Lingang Holdings Corp. Ltd., Class A |
5,640 | 8,871 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A |
8,000 | 9,985 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B |
30,940 | 22,957 | ||||||
Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A |
4,700 | 7,245 | ||||||
Shenzhen Investment Ltd.(a) |
882,000 | 120,224 | ||||||
Shimao Group Holdings Ltd.* ‡ (a) |
32,000 | 9,910 | ||||||
Shimao Services Holdings Ltd.* (a) (b) |
11,000 | 1,766 | ||||||
Shoucheng Holdings Ltd. |
110,000 | 20,039 | ||||||
Shui On Land Ltd.(a) |
1,396,500 | 128,089 | ||||||
Sichuan Languang Justbon Services Group Co. Ltd., Class H* |
26,500 | 182,803 | ||||||
Sime Darby Property Bhd. |
178,200 | 17,149 | ||||||
Sinic Holdings Group Co. Ltd., Class H* ‡ (b) |
318,000 | — | ||||||
Sino-Ocean Group Holding Ltd.(a) |
1,173,500 | 77,737 | ||||||
Sinyi Realty, Inc. |
125,000 | 108,814 | ||||||
SK D&D Co. Ltd. |
3,408 | 49,286 | ||||||
SM Prime Holdings, Inc. |
215,600 | 117,194 | ||||||
SOHO China Ltd.* |
76,000 | 11,134 | ||||||
SP Setia Bhd. Group |
75,694 | 7,685 | ||||||
Summarecon Agung Tbk. PT |
227,900 | 8,621 | ||||||
Sunac China Holdings Ltd.* ‡ (a) |
145,000 | 46,530 | ||||||
Sunac Services Holdings Ltd.(a) (b) |
352,000 | 61,881 | ||||||
Supalai PCL, NVDR |
23,800 | 13,132 | ||||||
Talaat Moustafa Group |
413,771 | 141,350 | ||||||
United Development Co. QSC |
67,999 | 26,757 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
UOA Development Bhd. |
21,800 | $ | 7,193 | |||||
WHA Corp. PCL, NVDR |
117,490 | 12,163 | ||||||
Yuexiu Property Co. Ltd. |
41,600 | 35,506 | ||||||
Yungshin Construction & Development Co. Ltd. |
28,000 | 52,051 | ||||||
Zhejiang China Commodities City Group Co. Ltd., Class A |
5,500 | 3,157 | ||||||
Zhongliang Holdings Group Co. Ltd.(b) |
236,500 | 10,243 | ||||||
Zhuguang Holdings Group Co. Ltd.* (a) |
100,000 | 8,153 | ||||||
6,549,971 | ||||||||
Road & Rail – 0.4% | ||||||||
Beijing-Shanghai High Speed Railway Co. Ltd., Class A |
59,000 | 36,054 | ||||||
BTS Group Holdings PCL, NVDR |
119,640 | 26,091 | ||||||
Container Corp. of India Ltd. |
4,480 | 43,189 | ||||||
Daqin Railway Co. Ltd., Class A |
40,000 | 35,130 | ||||||
Localiza Rent a Car SA |
12,105 | 162,730 | ||||||
Movida Participacoes SA |
55,396 | 143,788 | ||||||
Rumo SA |
19,600 | 82,699 | ||||||
SIMPAR SA |
116,797 | 241,062 | ||||||
United International Transportation Co. |
996 | 12,127 | ||||||
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA |
5,500 | 16,896 | ||||||
799,766 | ||||||||
Semiconductors & Semiconductor Equipment – 5.3% | ||||||||
ADATA Technology Co. Ltd. |
104,000 | 173,965 | ||||||
Advanced Wireless Semiconductor Co. |
10,000 | 19,179 | ||||||
Alchip Technologies Ltd. |
1,000 | 20,141 | ||||||
Amazing Microelectronic Corp. |
30,000 | 76,810 | ||||||
Andes Technology Corp. |
2,379 | 27,539 | ||||||
Anpec Electronics Corp. |
2,000 | 6,548 | ||||||
Ardentec Corp. |
147,000 | 190,921 | ||||||
ASE Technology Holding Co. Ltd. |
105,000 | 261,991 | ||||||
ASMedia Technology, Inc. |
1,000 | 18,062 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 273 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
ASPEED Technology, Inc. |
1,000 | $ | 52,137 | |||||
Borosil Renewables Ltd.* |
20,312 | 138,321 | ||||||
China Resources Microelectronics Ltd., Class A |
1,350 | 9,370 | ||||||
Chipbond Technology Corp. |
21,000 | 35,454 | ||||||
ChipMOS Technologies, Inc. |
24,000 | 23,648 | ||||||
D&O Green Technologies Bhd. |
15,300 | 12,556 | ||||||
Daqo New Energy Corp., ADR* |
1,804 | 79,358 | ||||||
DB HiTek Co. Ltd. |
1,396 | 43,366 | ||||||
Elan Microelectronics Corp. |
4,000 | 10,080 | ||||||
Elite Semiconductor Microelectronics Technology, Inc. |
5,000 | 9,683 | ||||||
eMemory Technology, Inc. |
1,000 | 33,362 | ||||||
ENNOSTAR, Inc. |
7,000 | 8,929 | ||||||
Eo Technics Co. Ltd. |
134 | 6,133 | ||||||
Episil Technologies, Inc. |
6,292 | 16,988 | ||||||
Etron Technology, Inc. |
13,647 | 14,739 | ||||||
Eugene Technology Co. Ltd. |
65 | 983 | ||||||
Everlight Electronics Co. Ltd. |
175,000 | 186,011 | ||||||
Faraday Technology Corp. |
4,000 | 17,627 | ||||||
Fine Technix Co. Ltd. |
5,107 | 8,461 | ||||||
Fitipower Integrated Technology, Inc. |
3,000 | 9,683 | ||||||
Fittech Co. Ltd. |
27,000 | 66,196 | ||||||
Flat Glass Group Co. Ltd., Class A* |
3,600 | 16,918 | ||||||
Flat Glass Group Co. Ltd., Class H(a) |
7,000 | 16,390 | ||||||
FocalTech Systems Co. Ltd. |
90,000 | 191,326 | ||||||
Formosa Advanced Technologies Co. Ltd. |
64,000 | 74,681 | ||||||
Formosa Sumco Technology Corp. |
1,000 | 4,515 | ||||||
GCL System Integration Technology Co. Ltd., Class A* |
25,500 | 11,425 | ||||||
GemVax & Kael Co. Ltd.* |
920 | 8,009 | ||||||
Genesys Logic, Inc. |
3,000 | 7,765 | ||||||
GigaDevice Semiconductor, Inc., Class A |
1,440 | 16,232 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Global Mixed Mode Technology, Inc. |
30,000 | $ | 120,102 | |||||
Global Unichip Corp. |
2,000 | 30,258 | ||||||
Globalwafers Co. Ltd. |
4,000 | 44,503 | ||||||
Greatek Electronics, Inc. |
14,000 | 20,203 | ||||||
HAESUNG DS Co. Ltd. |
379 | 10,111 | ||||||
Hana Materials, Inc. |
318 | 6,842 | ||||||
Hana Micron, Inc.* |
871 | 5,717 | ||||||
Hangzhou First Applied Material Co. Ltd., Class A |
2,660 | 23,347 | ||||||
Hangzhou Silan Microelectronics Co. Ltd., Class A |
2,900 | 12,476 | ||||||
Holtek Semiconductor, Inc. |
6,000 | 12,364 | ||||||
Hua Hong Semiconductor Ltd.* (a) (b) |
11,000 | 25,756 | ||||||
Inari Amertron Bhd. |
37,200 | 19,591 | ||||||
Innox Advanced Materials Co. Ltd. |
843 | 16,186 | ||||||
ITE Technology, Inc. |
59,000 | 108,946 | ||||||
JA Solar Technology Co. Ltd., Class A |
3,780 | 32,369 | ||||||
JCET Group Co. Ltd., Class A |
5,300 | 17,486 | ||||||
Jentech Precision Industrial Co. Ltd. |
2,199 | 23,954 | ||||||
Jusung Engineering Co. Ltd. |
14,612 | 117,454 | ||||||
King Yuan Electronics Co. Ltd. |
35,000 | 35,519 | ||||||
Kinsus Interconnect Technology Corp. |
4,000 | 12,972 | ||||||
LandMark Optoelectronics Corp. |
5,000 | 14,384 | ||||||
LEENO Industrial, Inc. |
180 | 17,287 | ||||||
LONGi Green Energy Technology Co. Ltd., Class A |
10,048 | 66,054 | ||||||
LX Semicon Co. Ltd. |
411 | 23,919 | ||||||
Macronix International Co. Ltd. |
48,000 | 44,391 | ||||||
MediaTek, Inc. |
28,000 | 512,685 | ||||||
Montage Technology Co. Ltd., Class A |
3,246 | 25,235 | ||||||
Nanya Technology Corp. |
30,000 | 50,741 | ||||||
NAURA Technology Group Co. Ltd., Class A |
900 | 32,764 | ||||||
NEPES Corp.* |
1,325 | 16,976 | ||||||
NEXTIN, Inc. |
265 | 9,637 |
See Accompanying Notes to the Financial Statements.
274 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Novatek Microelectronics Corp. |
18,000 | $ | 134,626 | |||||
Nuvoton Technology Corp. |
4,000 | 12,724 | ||||||
Pan Jit International, Inc. |
8,000 | 13,680 | ||||||
Parade Technologies Ltd. |
1,400 | 26,460 | ||||||
Phison Electronics Corp. |
6,000 | 55,024 | ||||||
Pixart Imaging, Inc. |
9,000 | 22,540 | ||||||
Powerchip Semiconductor Manufacturing Corp. |
80,000 | 76,468 | ||||||
Powertech Technology, Inc. |
20,000 | 46,303 | ||||||
Radiant Opto-Electronics Corp. |
14,330 | 43,760 | ||||||
RDC Semiconductor Co. Ltd.* |
3,000 | 12,988 | ||||||
Realtek Semiconductor Corp. |
9,070 | 71,777 | ||||||
RFHIC Corp. |
829 | 12,251 | ||||||
RichWave Technology Corp. |
5,072 | 15,017 | ||||||
S&S Tech Corp. |
423 | 7,379 | ||||||
SDI Corp. |
8,000 | 22,171 | ||||||
Shanghai Fudan Microelectronics Group Co. Ltd., Class A |
1,050 | 13,499 | ||||||
Shanghai Fudan Microelectronics Group Co. Ltd., Class H |
4,000 | 17,325 | ||||||
Sigurd Microelectronics Corp. |
147,000 | 212,134 | ||||||
Silergy Corp. |
5,000 | 58,034 | ||||||
Silicon Integrated Systems Corp. |
18,964 | 8,946 | ||||||
SIMMTECH Co. Ltd. |
1,039 | 25,784 | ||||||
Sino-American Silicon Products, Inc. |
18,000 | 69,268 | ||||||
Sitronix Technology Corp. |
4,000 | 20,545 | ||||||
SK Hynix, Inc. |
15,827 | 918,876 | ||||||
SK Square Co. Ltd.* |
1,604 | 41,608 | ||||||
Sonix Technology Co. Ltd. |
66,000 | 94,117 | ||||||
Sunplus Technology Co. Ltd. |
29,000 | 20,295 | ||||||
Taiwan Mask Corp. |
7,000 | 12,817 | ||||||
Taiwan Semiconductor Co. Ltd. |
9,000 | 20,948 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
325,000 | 3,933,587 | ||||||
Taiwan Surface Mounting Technology Corp. |
5,000 | 12,709 | ||||||
Taiwan-Asia Semiconductor Corp. |
13,000 | 12,769 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A |
4,700 | $ | 25,436 | |||||
TES Co. Ltd. |
6,243 | 69,686 | ||||||
Tianshui Huatian Technology Co. Ltd., Class A |
10,800 | 13,051 | ||||||
Tokai Carbon Korea Co. Ltd. |
86 | 6,128 | ||||||
TongFu Microelectronics Co. Ltd., Class A* |
4,700 | 12,126 | ||||||
Topco Scientific Co. Ltd. |
64,000 | 296,935 | ||||||
Trina Solar Co. Ltd., Class A |
3,871 | 35,233 | ||||||
TSE Co. Ltd. |
165 | 4,454 | ||||||
TSEC Corp.* |
25,241 | 26,242 | ||||||
Unigroup Guoxin Microelectronics Co. Ltd., Class A |
1,679 | 37,753 | ||||||
United Microelectronics Corp.* |
350,000 | 424,703 | ||||||
United Renewable Energy Co. Ltd.* |
40,574 | 26,443 | ||||||
UniTest, Inc.* |
636 | 5,693 | ||||||
Vanguard International Semiconductor Corp. |
18,000 | 37,092 | ||||||
Via Technologies, Inc. |
90,000 | 179,036 | ||||||
Visual Photonics Epitaxy Co. Ltd. |
10,000 | 17,938 | ||||||
ViTrox Corp. Bhd. |
9,600 | 14,376 | ||||||
Wafer Works Corp. |
11,511 | 14,254 | ||||||
Will Semiconductor Co. Ltd. Shanghai, Class A |
2,025 | 20,357 | ||||||
Win Semiconductors Corp. |
6,961 | 26,356 | ||||||
Winbond Electronics Corp. |
89,000 | 53,860 | ||||||
WONIK IPS Co. Ltd. |
824 | 15,908 | ||||||
Wonik QnC Corp. |
818 | 13,983 | ||||||
XinTec, Inc. |
3,000 | 8,910 | ||||||
Xinyi Solar Holdings Ltd. |
81,343 | 80,723 | ||||||
10,968,836 | ||||||||
Software – 0.3% | ||||||||
360 Security Technology, Inc., Class A |
15,500 | 15,036 | ||||||
Ahnlab, Inc. |
190 | 8,310 | ||||||
AsiaInfo Technologies Ltd.(b) |
21,200 | 25,333 | ||||||
Beijing Kingsoft Office Software, Inc., Class A |
872 | 34,736 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 275 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Birlasoft Ltd. |
9,308 | $ | 30,456 | |||||
Cyient Ltd. |
4,410 | 39,919 | ||||||
Douzone Bizon Co. Ltd. |
530 | 11,348 | ||||||
Hancom, Inc.* |
294 | 2,704 | ||||||
Hundsun Technologies, Inc., Class A |
4,550 | 25,984 | ||||||
Iflytek Co. Ltd., Class A |
4,700 | 22,558 | ||||||
Intellect Design Arena Ltd. |
4,762 | 24,829 | ||||||
Kingdee International Software Group Co. Ltd.* |
49,000 | 80,149 | ||||||
KPIT Technologies Ltd. |
6,307 | 54,039 | ||||||
Linklogis, Inc., Class B* (a) (b) |
53,000 | 18,500 | ||||||
Ming Yuan Cloud Group Holdings Ltd.(a) |
11,000 | 5,059 | ||||||
NavInfo Co. Ltd., Class A |
4,700 | 7,637 | ||||||
Oracle Financial Services Software Ltd. |
632 | 22,240 | ||||||
Route Mobile Ltd. |
954 | 15,098 | ||||||
Shanghai Baosight Software Co. Ltd., Class A |
3,510 | 20,352 | ||||||
Shanghai Baosight Software Co. Ltd., Class B |
11,609 | 34,978 | ||||||
Tanla Platforms Ltd. |
1,963 | 17,597 | ||||||
Tata Elxsi Ltd. |
635 | 53,666 | ||||||
TOTVS SA* |
9,900 | 62,563 | ||||||
Weimob, Inc.* (a) (b) |
87,000 | 30,478 | ||||||
Yonyou Network Technology Co. Ltd., Class A |
4,700 | 15,738 | ||||||
679,307 | ||||||||
Specialty Retail – 1.6% | ||||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
48,412 | 59,443 | ||||||
Ace Hardware Indonesia Tbk. PT |
206,000 | 7,462 | ||||||
Bermaz Auto Bhd. |
56,000 | 23,452 | ||||||
China Meidong Auto Holdings Ltd.(a) |
8,000 | 10,517 | ||||||
China Tourism Group Duty Free Corp. Ltd., Class A |
2,500 | 54,928 | ||||||
China Yongda Automobiles Services Holdings Ltd. |
514,500 | 230,710 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
Chow Tai Fook Jewellery Group Ltd. |
42,600 | $ | 72,937 | |||||
Com7 PCL, NVDR |
22,000 | 17,486 | ||||||
Cuckoo Homesys Co. Ltd. |
3,038 | 61,210 | ||||||
Detsky Mir PJSC‡ |
258,500 | — | ||||||
Dogan Sirketler Grubu Holding A/S |
425,271 | 136,248 | ||||||
Dogus Otomotiv Servis ve Ticaret A/S |
12,557 | 82,755 | ||||||
EEKA Fashion Holdings Ltd. |
98,000 | 127,340 | ||||||
Foschini Group Ltd. (The) |
6,321 | 39,524 | ||||||
GOME Retail Holdings Ltd.* (a) |
383,447 | 6,252 | ||||||
Grupo SBF SA |
5,300 | 19,130 | ||||||
Home Product Center PCL, NVDR |
78,600 | 30,151 | ||||||
Hotai Motor Co. Ltd. |
6,000 | 108,744 | ||||||
Hotel Shilla Co. Ltd. |
470 | 21,447 | ||||||
Italtile Ltd. |
10,931 | 8,179 | ||||||
Jarir Marketing Co. |
839 | 36,619 | ||||||
JUMBO SA |
3,506 | 49,864 | ||||||
K Car Co. Ltd. |
176 | 1,390 | ||||||
Lojas Renner SA* |
16,350 | 96,282 | ||||||
LOTTE Himart Co. Ltd. |
4,108 | 38,068 | ||||||
M.Video PJSC‡ |
31,680 | — | ||||||
Motus Holdings Ltd. |
68,796 | 434,619 | ||||||
MR DIY Group M Bhd.(b) |
63,600 | 27,173 | ||||||
Mr Price Group Ltd. |
5,194 | 49,980 | ||||||
Pan German Universal Motors Ltd. |
9,000 | 55,303 | ||||||
Pepkor Holdings Ltd.(b) |
25,185 | 31,068 | ||||||
Pet Center Comercio e Participacoes SA |
11,807 | 19,711 | ||||||
Pop Mart International Group Ltd.(a) (b) |
13,000 | 16,826 | ||||||
PTT Oil & Retail Business PCL, NVDR |
54,200 | 34,320 | ||||||
Shanghai Yuyuan Tourist Mart Group Co. Ltd. |
18,800 | 16,150 | ||||||
Shinsegae International, Inc. |
6,517 | 107,744 | ||||||
Siam Global House PCL, NVDR |
38,944 | 20,567 | ||||||
Super Group Ltd. |
142,806 | 201,883 |
See Accompanying Notes to the Financial Statements.
276 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Topsports International Holdings Ltd.(b) |
52,000 | $ | 26,232 | |||||
Truworths International Ltd. |
162,288 | 461,497 | ||||||
United Electronics Co. |
1,619 | 32,961 | ||||||
Via S/A* |
568,400 | 339,052 | ||||||
Vibra Energia SA |
29,400 | 102,254 | ||||||
Zhongsheng Group Holdings Ltd. |
9,000 | 34,166 | ||||||
3,351,644 | ||||||||
Technology Hardware, Storage & Peripherals – 4.7% | ||||||||
Acer, Inc. |
97,858 | 67,116 | ||||||
Advantech Co. Ltd. |
7,941 | 72,208 | ||||||
Asia Vital Components Co. Ltd. |
8,000 | 25,324 | ||||||
ASROCK, Inc. |
21,000 | 63,868 | ||||||
Asustek Computer, Inc. |
20,000 | 146,481 | ||||||
AURAS Technology Co. Ltd. |
30,000 | 111,723 | ||||||
Catcher Technology Co. Ltd. |
14,000 | 73,644 | ||||||
Chicony Electronics Co. Ltd. |
15,992 | 39,754 | ||||||
China Greatwall Technology Group Co. Ltd., Class A |
5,500 | 8,402 | ||||||
Clevo Co. |
196,000 | 187,043 | ||||||
Compal Electronics, Inc. |
134,000 | 87,746 | ||||||
CosmoAM&T Co. Ltd.* |
450 | 21,198 | ||||||
Darfon Electronics Corp. |
71,000 | 83,400 | ||||||
Ennoconn Corp. |
2,000 | 11,483 | ||||||
Getac Holdings Corp. |
166,000 | 200,658 | ||||||
Gigabyte Technology Co. Ltd. |
18,000 | 51,672 | ||||||
HTC Corp.* |
18,000 | 28,210 | ||||||
Innodisk Corp. |
4,872 | 24,948 | ||||||
Inventec Corp. |
70,000 | 53,006 | ||||||
Legend Holdings Corp., Class H(b) |
234,500 | 196,864 | ||||||
Lenovo Group Ltd. |
196,000 | 156,803 | ||||||
Lite-On Technology Corp. |
72,000 | 143,006 | ||||||
Micro-Star International Co. Ltd. |
21,000 | 71,363 | ||||||
Mitac Holdings Corp. |
33,600 | 28,259 | ||||||
Multilaser Industrial SA |
63,700 | 63,248 | ||||||
Ninestar Corp., Class A |
2,900 | 22,692 | ||||||
Pegatron Corp. |
61,000 | 111,692 | ||||||
Qisda Corp. |
56,000 | 42,666 | ||||||
Quanta Computer, Inc. |
82,000 | 174,065 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Samsung Electronics Co. Ltd. |
152,488 | $ | 6,358,796 | |||||
Samsung Electronics Co. Ltd. (Preference) |
24,696 | 924,074 | ||||||
Shenzhen Transsion Holdings Co. Ltd., Class A |
2,200 | 18,728 | ||||||
Wistron Corp. |
98,000 | 79,227 | ||||||
Wiwynn Corp. |
3,000 | 67,406 | ||||||
9,816,773 | ||||||||
Textiles, Apparel & Luxury Goods – 1.4% | ||||||||
361 Degrees International Ltd.* (a) |
366,000 | 152,464 | ||||||
Aditya Birla Fashion and Retail Ltd.* |
6,536 | 27,943 | ||||||
Aksa Akrilik Kimya Sanayii A/S |
49,588 | 185,659 | ||||||
Alok Industries Ltd.* |
23,980 | 4,490 | ||||||
Alpargatas SA (Preference) |
5,500 | 23,018 | ||||||
ANTA Sports Products Ltd. |
19,600 | 172,284 | ||||||
Arezzo Industria e Comercio SA |
1,748 | 34,812 | ||||||
Bata India Ltd. |
848 | 18,730 | ||||||
Bosideng International Holdings Ltd.(a) |
54,000 | 23,320 | ||||||
COWELL FASHION Co. Ltd. |
9,978 | 35,584 | ||||||
DI Dong Il Corp. |
5,194 | 52,507 | ||||||
Eclat Textile Co. Ltd. |
3,698 | 48,718 | ||||||
F&F Co. Ltd. |
275 | 28,090 | ||||||
Feng TAY Enterprise Co. Ltd. |
10,600 | 52,799 | ||||||
FF Group* ‡ |
3,536 | — | ||||||
Fila Holdings Corp. |
1,167 | 26,790 | ||||||
Formosa Taffeta Co. Ltd. |
49,000 | 39,005 | ||||||
Fuguiniao Group Ltd.* ‡ |
334,800 | — | ||||||
Fulgent Sun International Holding Co. Ltd. |
4,000 | 16,945 | ||||||
Garware Technical Fibres Ltd. |
450 | 19,032 | ||||||
Golden Solar New Energy Technology Holdings Ltd.* (a) |
42,000 | 41,947 | ||||||
Grendene SA |
8,264 | 11,434 | ||||||
Grupo de Moda Soma SA |
15,900 | 44,119 | ||||||
Handsome Co. Ltd. |
4,851 | 85,479 | ||||||
Hansae Co. Ltd. |
1,281 | 13,265 | ||||||
Hwaseung Enterprise Co. Ltd. |
331 | 2,050 | ||||||
KPR Mill Ltd. |
1,754 | 11,694 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 277 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Lao Feng Xiang Co. Ltd., Class B |
2,500 | $ | 7,000 | |||||
LF Corp. |
5,831 | 60,789 | ||||||
Li Ning Co. Ltd. |
39,500 | 204,297 | ||||||
Makalot Industrial Co. Ltd. |
4,334 | 26,900 | ||||||
Nature Holdings Co. Ltd. (The) |
3,211 | 60,525 | ||||||
Page Industries Ltd. |
118 | 70,946 | ||||||
Paiho Shih Holdings Corp. |
49,000 | 38,321 | ||||||
Pou Chen Corp. |
63,000 | 53,278 | ||||||
Rajesh Exports Ltd. |
2,600 | 21,723 | ||||||
Relaxo Footwears Ltd. |
2,248 | 26,270 | ||||||
Ruentex Industries Ltd. |
28,819 | 49,369 | ||||||
Shenzhou International Group Holdings Ltd. |
14,700 | 101,872 | ||||||
Shinsung Tongsang Co. Ltd.* |
15,550 | 25,763 | ||||||
Tainan Spinning Co. Ltd. |
48,555 | 24,411 | ||||||
Taiwan Paiho Ltd. |
100,000 | 151,447 | ||||||
Texhong Textile Group Ltd. |
122,500 | 78,963 | ||||||
Titan Co. Ltd. |
7,301 | 243,565 | ||||||
Trident Ltd. |
22,165 | 9,439 | ||||||
Vaibhav Global Ltd. |
41 | 174 | ||||||
Vardhman Textiles Ltd. |
43,855 | 178,302 | ||||||
VIP Industries Ltd. |
3,025 | 27,302 | ||||||
Viva China Holdings Ltd.* (a) |
1,176,000 | 146,816 | ||||||
Vivara Participacoes SA |
5,300 | 27,080 | ||||||
Welspun India Ltd. |
7,370 | 6,976 | ||||||
Xtep International Holdings Ltd.(a) |
27,500 | 25,223 | ||||||
Youngone Corp. |
890 | 29,553 | ||||||
Youngone Holdings Co. Ltd. |
2,414 | 91,683 | ||||||
2,960,165 | ||||||||
Thrifts & Mortgage Finance – 0.2% | ||||||||
Aavas Financiers Ltd.* |
611 | 14,901 | ||||||
Can Fin Homes Ltd. |
4,876 | 30,887 | ||||||
IIFL Finance Ltd. |
4,595 | 23,309 | ||||||
Indiabulls Housing Finance Ltd.* |
159,152 | 248,694 | ||||||
LIC Housing Finance Ltd. |
10,094 | 49,423 | ||||||
PNB Housing Finance Ltd.* (b) |
10,604 | 56,365 | ||||||
Sangsangin Co. Ltd. |
13,573 | 61,745 | ||||||
485,324 |
Investments | Shares | Value | ||||||
Tobacco – 0.3% | ||||||||
British American Tobacco Malaysia Bhd. |
400 | $ | 890 | |||||
Eastern Co. SAE |
27,721 | 13,648 | ||||||
Gudang Garam Tbk. PT |
14,900 | 23,023 | ||||||
ITC Ltd. |
51,107 | 215,288 | ||||||
KT&G Corp. |
3,254 | 218,616 | ||||||
RLX Technology, Inc., ADR* (a) |
29,825 | 37,281 | ||||||
Smoore International Holdings Ltd.(a) (b) |
33,000 | 35,103 | ||||||
543,849 | ||||||||
Trading Companies & Distributors – 0.4% | ||||||||
Adani Enterprises Ltd. |
4,622 | 186,910 | ||||||
ALAFCO Aviation Lease & Finance Co. KSCP* |
3,260 | 1,768 | ||||||
Armac Locacao Logistica E Servicos SA |
5,000 | 15,361 | ||||||
Barloworld Ltd. |
74,284 | 416,136 | ||||||
BOC Aviation Ltd.(a) (b) |
5,100 | 34,141 | ||||||
Chin Hin Group Bhd. |
29,300 | 17,414 | ||||||
COSCO SHIPPING Development Co. Ltd., Class A |
37,600 | 12,570 | ||||||
COSCO SHIPPING Development Co. Ltd., Class H |
62,000 | 7,187 | ||||||
IndiaMart InterMesh Ltd.(b) |
192 | 10,650 | ||||||
LX International Corp. |
800 | 22,830 | ||||||
Posco International Corp. |
1,484 | 21,513 | ||||||
Realord Group Holdings Ltd.* (a) |
12,000 | 14,079 | ||||||
SK Networks Co. Ltd. |
2,415 | 6,833 | ||||||
Xiamen C & D, Inc., Class A |
9,400 | 15,442 | ||||||
782,834 | ||||||||
Transportation Infrastructure – 1.0% | ||||||||
Adani Ports & Special Economic Zone Ltd. |
11,172 | 111,150 | ||||||
Airports of Thailand PCL* |
54,000 | 104,283 | ||||||
Airports of Thailand PCL, NVDR* |
28,900 | 56,190 | ||||||
Anhui Expressway Co. Ltd., Class H |
136,000 | 86,972 |
See Accompanying Notes to the Financial Statements.
278 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Bangkok Expressway & Metro PCL, NVDR |
142,000 | $ | 35,071 | |||||
Beijing Capital International Airport Co. Ltd., Class H* (a) |
56,000 | 30,319 | ||||||
CCR SA |
19,982 | 49,353 | ||||||
China Merchants Port Holdings Co. Ltd. |
38,410 | 45,016 | ||||||
COSCO SHIPPING Ports Ltd. |
59,348 | 29,259 | ||||||
EcoRodovias Infraestrutura e Logistica SA* |
4,700 | 4,873 | ||||||
Evergreen International Storage & Transport Corp. |
16,000 | 12,910 | ||||||
GMR Airports Infrastructure Ltd.* |
48,418 | 21,905 | ||||||
Grupo Aeroportuario del Centro Norte SAB de CV |
11,981 | 95,273 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B |
5,736 | 88,689 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B |
3,410 | 79,662 | ||||||
Guangdong Provincial Expressway Development Co. Ltd., Class B |
122,500 | 78,963 | ||||||
International Container Terminal Services, Inc. |
16,170 | 48,273 | ||||||
Jasa Marga Persero Tbk. PT* |
39,723 | 8,684 | ||||||
Jiangsu Expressway Co. Ltd., Class H |
32,000 | 22,543 | ||||||
Lingkaran Trans Kota Holdings Bhd. |
107,100 | 113,261 | ||||||
Malaysia Airports Holdings Bhd.* |
27,900 | 35,288 | ||||||
Ningbo Zhoushan Port Co. Ltd., Class A |
23,500 | 11,173 | ||||||
Novorossiysk Commercial Sea Port PJSC‡ |
189,696 | — | ||||||
Promotora y Operadora de Infraestructura SAB de CV |
2,160 | 16,219 | ||||||
Qingdao Port International Co. Ltd., Class H(b) |
47,000 | 19,699 | ||||||
Saudi Ground Services Co.* |
4,431 | 30,660 | ||||||
Shanghai International Airport Co. Ltd., Class A* |
3,600 | 26,329 |
Investments | Shares | Value | ||||||
Transportation Infrastructure – (continued) | ||||||||
Shanghai International Port Group Co. Ltd., Class A |
56,700 | $ | 40,164 | |||||
Shenzhen International Holdings Ltd.(a) |
33,343 | 22,427 | ||||||
Sichuan Expressway Co. Ltd., Class H |
294,000 | 60,674 | ||||||
Taiwan High Speed Rail Corp. |
50,000 | 43,603 | ||||||
TAV Havalimanlari Holding A/S* |
10,176 | 42,886 | ||||||
Westports Holdings Bhd. |
17,500 | 12,437 | ||||||
Wilson Sons Holdings Brasil SA |
79,560 | 172,091 | ||||||
Yuexiu Transport Infrastructure Ltd.(a) |
392,000 | 153,307 | ||||||
Zhejiang Expressway Co. Ltd., Class H |
524,000 | 325,087 | ||||||
2,134,693 | ||||||||
Water Utilities – 0.6% | ||||||||
Aguas Andinas SA, Class A |
1,053,095 | 222,041 | ||||||
Athens Water Supply & Sewage Co. SA |
10,591 | 75,367 | ||||||
Beijing Enterprises Water Group Ltd.(a) |
132,000 | 27,746 | ||||||
China Water Affairs Group Ltd.(a) |
346,000 | 245,070 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* |
4,900 | 56,123 | ||||||
Cia de Saneamento de Minas Gerais-COPASA* |
70,639 | 206,778 | ||||||
Cia de Saneamento do Parana |
93,512 | 341,097 | ||||||
Guangdong Investment Ltd. |
40,000 | 25,223 | ||||||
Luenmei Quantum Co. Ltd., Class A |
9,400 | 8,024 | ||||||
Manila Water Co., Inc. |
37,900 | 10,686 | ||||||
National Central Cooling Co. PJSC |
24,552 | 21,256 | ||||||
1,239,411 | ||||||||
Wireless Telecommunication Services – 1.1% | ||||||||
Advanced Info Service PCL, NVDR |
20,300 | 101,873 | ||||||
America Movil SAB de CV, Series L |
558,700 | 527,766 | ||||||
Axiata Group Bhd. |
77,304 | 46,598 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 279 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Wireless Telecommunication Services – (continued) | ||||||||
Bharti Airtel Ltd. |
43,361 | $ | 435,823 | |||||
DiGi.Com Bhd. |
63,700 | 51,062 | ||||||
Empresa Nacional de Telecomunicaciones SA |
58,053 | 181,168 | ||||||
Etihad Etisalat Co. |
7,632 | 74,339 | ||||||
Far EasTone Telecommunications Co. Ltd. |
30,000 | 65,824 | ||||||
Globe Telecom, Inc. |
887 | 35,541 | ||||||
Indosat Tbk. PT |
31,800 | 13,813 | ||||||
Intouch Holdings PCL, NVDR |
23,300 | 44,078 | ||||||
Kuwait Telecommunications Co. |
10,890 | 20,743 | ||||||
Maxis Bhd. |
32,900 | 26,791 | ||||||
Mobile Telecommunications Co. KSCP |
30,838 | 59,635 | ||||||
Mobile Telecommunications Co. Saudi Arabia* |
8,508 | 29,390 | ||||||
Mobile TeleSystems PJSC‡ |
31,356 | — | ||||||
MTN Group Ltd. |
14,210 | 100,396 | ||||||
PLDT, Inc. |
2,735 | 77,118 | ||||||
Sistema PJSFC* ‡ |
122,643 | — | ||||||
SK Telecom Co. Ltd. |
3,127 | 109,981 | ||||||
Smartfren Telecom Tbk. PT* |
2,936,200 | 14,683 | ||||||
Taiwan Mobile Co. Ltd. |
30,000 | 88,541 | ||||||
TIM SA* |
8,600 | 21,634 | ||||||
Turkcell Iletisim Hizmetleri A/S |
37,864 | 52,187 | ||||||
Vodacom Group Ltd. |
12,005 | 81,858 | ||||||
Vodafone Idea Ltd.* |
97,468 | 10,067 | ||||||
Vodafone Qatar QSC |
105,056 | 48,291 | ||||||
2,319,200 | ||||||||
Total
Common Stocks (Cost $227,162,575) |
|
206,012,330 | ||||||
Principal Amount |
||||||||
CORPORATE BONDS – 0.0%(d) | ||||||||
Independent Power and Renewable
Electricity Producers – 0.0%(d) |
||||||||
NTPC
Ltd. |
INR 49,126 | 7,923 |
Investments | Number of Rights |
Value | ||||||
RIGHTS – 0.0%(d) | ||||||||
Airlines – 0.0%(d) | ||||||||
Jeju Air Co. Ltd., expiring 11/4/2022, price 11,250.00 KRW* |
860 | $ | 59 | |||||
Banks – 0.0%(d) | ||||||||
Shanghai Comm & Savings Bank Trust Department (The), expiring 11/8/2022, price 37.00 TWD* |
9,236 | 2,694 | ||||||
Food Products – 0.0% | ||||||||
Thai Union Group PCL, expiring 1/31/2023, price 0.25 THB* ‡ |
2,330 | — | ||||||
Health Care Providers & Services – 0.0%(d) | ||||||||
Fleury SA, expiring 11/21/2022, price 17.27 BRL* |
800 | 198 | ||||||
Independent Power and Renewable
Electricity Producers – 0.0%(d) |
||||||||
Omega Energia SA, expiring 11/7/2022, price 16.00 BRL* |
1,592 | 6 | ||||||
Insurance – 0.0%(d) | ||||||||
Mercuries
Life Insurance Co. Ltd., |
32,545 | 283 | ||||||
Leisure Products – 0.0%(d) | ||||||||
HLB,
Inc., |
148 | 1,018 | ||||||
Pharmaceuticals – 0.0%(d) | ||||||||
Oscotec,
Inc., |
306 | 602 | ||||||
Total
Rights (Cost $—) |
|
4,860 |
See Accompanying Notes to the Financial Statements.
280 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Principal Amount |
Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – 1.5% | ||||||||
REPURCHASE AGREEMENTS – 1.5% | ||||||||
Citigroup
Global Markets, Inc., 3.00%, dated 10/31/2022, due 11/1/2022, repurchase
price $3,027,949, collateralized by various U.S. Treasury Securities,
ranging from 0.75% – 5.50%, maturing 7/15/2028 – 1/15/2029; total market
value $3,049,202 |
$ | 3,027,697 | $ | 3,027,697 | ||||
Total
Investments – 101.0% (Cost $230,190,272) |
|
209,052,810 | ||||||
Liabilities in excess of other assets – (1.0%) |
|
(2,163,897 | ) | |||||
NET ASSETS – 100.0% |
|
$ | 206,888,913 |
* |
Non-income producing security. |
‡ |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(a) |
The security or a portion of this security is on loan at October 31, 2022. The total value of securities on loan at October 31, 2022 was $8,215,520, collateralized in the form of cash with a value of $3,027,697 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $4,107,745 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.63%, and maturity dates ranging from November 10, 2022 – May 15, 2052 and $1,829,206 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from March 8, 2023 – June 30, 2120; a total value of $8,964,648. |
(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 exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
Represents less than 0.05% of net assets. |
(e) |
The security was purchased with cash collateral held from securities on loan at October 31, 2022. The total value of securities purchased was $3,027,697. |
Percentages shown are based on Net Assets.
Abbreviations
ADR – American Depositary Receipt
GDR – Global Depositary Receipt
NVDR – Non-Voting Depositary Receipt
OJSC – Open Joint Stock Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SCA – Limited partnership with share capital
As of October 31, 2022, 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 |
$ | 34,504,723 | ||
Aggregate gross unrealized depreciation |
(60,205,659 | ) | ||
Net unrealized depreciation |
$ | (25,700,936 | ) | |
Federal income tax cost |
$ | 234,581,137 |
Futures Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following open futures contracts as of October 31, 2022:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value and Unrealized Depreciation* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI Emerging Markets E-Mini Index |
43 | 12/16/2022 | USD | $ | 1,835,240 | $ | (177,121 | ) |
* |
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 ANNUAL REPORT | 281 |
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 October 31, 2022:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||
USD |
957,774 | Goldman Sachs & Co. | HKD | 7,506,137 | 12/21/2022 | $ | 947 | |||||||||||||||
USD |
283,787 | Citibank NA | INR* | 22,818,500 | 12/21/2022 | 9,288 | ||||||||||||||||
USD |
44,610 | Citibank NA | KRW* | 61,816,590 | 12/21/2022 | 1,168 | ||||||||||||||||
USD |
940,495 | Citibank NA | TWD* | 29,366,120 | 12/21/2022 | 25,217 | ||||||||||||||||
USD |
26,276 | JPMorgan Chase Bank | ZAR | 470,000 | 12/21/2022 | 801 | ||||||||||||||||
Total unrealized appreciation |
|
$ | 37,421 | |||||||||||||||||||
BRL* |
2,030,000 | Goldman Sachs & Co. | USD | 387,834 | 12/21/2022 | $ | (5,051 | ) | ||||||||||||||
HKD |
3,500,000 | Bank of Montreal | USD | 446,590 | 12/21/2022 | (435 | ) | |||||||||||||||
INR* |
13,970,000 | Goldman Sachs & Co. | USD | 170,165 | 12/21/2022 | (2,110 | ) | |||||||||||||||
KRW* |
180,000,000 | BNP Paribas SA | USD | 128,459 | 12/21/2022 | (1,964 | ) | |||||||||||||||
TWD* |
26,810,000 | Citibank NA | USD | 851,682 | 12/21/2022 | (16,073 | ) | |||||||||||||||
USD |
405,593 | Citibank NA | BRL* | 2,189,553 | 12/21/2022 | (7,276 | ) | |||||||||||||||
Total unrealized depreciation |
|
$ | (32,909 | ) | ||||||||||||||||||
Net unrealized appreciation |
|
$ | 4,512 |
* |
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
TWD – Taiwan Dollar
USD – US Dollar
ZAR – South African Rand
See Accompanying Notes to the Financial Statements.
282 | FLEXSHARES ANNUAL REPORT |
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 October 31, 2022:
Brazil |
7.7 | % | ||
Chile |
1.2 | |||
China |
24.4 | |||
Colombia |
0.5 | |||
Czech Republic |
0.1 | |||
Egypt |
0.3 | |||
Greece |
0.3 | |||
Hungary |
0.2 | |||
India |
13.1 | |||
Indonesia |
2.5 | |||
Kuwait |
0.8 | |||
Malaysia |
2.3 | |||
Mexico |
2.4 | |||
Pakistan |
0.6 | |||
Peru |
0.4 | |||
Philippines |
0.8 | |||
Qatar |
1.0 | |||
Saudi Arabia |
2.7 | |||
South Africa |
4.2 | |||
South Korea |
13.7 | |||
Taiwan |
14.4 | |||
Thailand |
2.2 | |||
Turkey |
1.7 | |||
United Arab Emirates |
2.0 | |||
United Kingdom |
0.0 | † | ||
United States |
0.0 | † | ||
Other1 |
0.5 | |||
100.0 | % |
† |
Amount represents less than 0.05%. |
1 |
Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
Security Type | % of Net Assets | |||
Common Stocks |
99.6 | % | ||
Corporate Bonds |
0.0 | † | ||
Rights |
0.0 | † | ||
Securities Lending Reinvestments |
1.5 | |||
Others(1) |
(1.1 | ) | ||
100.0 | % |
† |
Amount represents less than 0.05%. |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 283 |
FlexShares® US Quality Large Cap Index Fund
October 31, 2022
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.5% | ||||||||
Aerospace & Defense – 1.0% | ||||||||
General Dynamics Corp. |
1,534 | $ | 383,193 | |||||
Lockheed Martin Corp. |
1,652 | 803,995 | ||||||
Textron, Inc. |
472 | 32,304 | ||||||
1,219,492 | ||||||||
Air Freight & Logistics – 1.5% | ||||||||
Expeditors International of Washington, Inc. |
6,254 | 611,954 | ||||||
United Parcel Service, Inc., Class B |
7,788 | 1,306,593 | ||||||
1,918,547 | ||||||||
Automobiles – 1.7% | ||||||||
Ford Motor Co. |
20,178 | 269,780 | ||||||
Tesla, Inc.* |
8,614 | 1,960,029 | ||||||
2,229,809 | ||||||||
Banks – 4.2% | ||||||||
Bank of America Corp. |
26,078 | 939,851 | ||||||
Citigroup, Inc. |
29,854 | 1,369,104 | ||||||
Citizens Financial Group, Inc. |
8,024 | 328,182 | ||||||
Fifth Third Bancorp |
14,042 | 501,159 | ||||||
JPMorgan Chase & Co. |
708 | 89,123 | ||||||
Wells Fargo & Co. |
46,728 | 2,149,021 | ||||||
5,376,440 | ||||||||
Biotechnology – 2.7% | ||||||||
AbbVie, Inc. |
2,124 | 310,954 | ||||||
Amgen, Inc. |
7,670 | 2,073,584 | ||||||
Gilead Sciences, Inc. |
3,422 | 268,490 | ||||||
Moderna, Inc.* (a) |
2,124 | 319,301 | ||||||
Regeneron Pharmaceuticals, Inc.* |
178 | 133,278 | ||||||
Vertex Pharmaceuticals, Inc.* |
944 | 294,528 | ||||||
3,400,135 | ||||||||
Building Products – 0.4% | ||||||||
Masco Corp. |
10,384 | 480,468 | ||||||
Capital Markets – 1.4% | ||||||||
Ameriprise Financial, Inc. |
354 | 109,429 | ||||||
Bank of New York Mellon Corp. (The) |
15,222 | 640,998 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Goldman Sachs Group, Inc. (The) |
826 | $ | 284,565 | |||||
Morgan Stanley |
9,912 | 814,469 | ||||||
1,849,461 | ||||||||
Chemicals – 1.0% | ||||||||
Celanese Corp. |
236 | 22,684 | ||||||
CF Industries Holdings, Inc. |
3,304 | 351,083 | ||||||
Dow, Inc. |
13,334 | 623,231 | ||||||
LyondellBasell Industries NV, Class A |
2,714 | 207,485 | ||||||
Mosaic Co. (The) |
1,534 | 82,453 | ||||||
1,286,936 | ||||||||
Communications Equipment – 1.5% | ||||||||
Cisco Systems, Inc. |
42,480 | 1,929,866 | ||||||
Consumer Finance – 2.1% | ||||||||
Ally Financial, Inc. |
3,894 | 107,319 | ||||||
American Express Co. |
2,832 | 420,410 | ||||||
Capital One Financial Corp. |
7,434 | 788,153 | ||||||
Discover Financial Services |
6,844 | 714,924 | ||||||
Synchrony Financial |
16,402 | 583,255 | ||||||
2,614,061 | ||||||||
Distributors – 0.1% | ||||||||
Genuine Parts Co. |
472 | 83,950 | ||||||
LKQ Corp. |
1,180 | 65,655 | ||||||
149,605 | ||||||||
Diversified Financial Services – 2.6% | ||||||||
Berkshire Hathaway, Inc., Class B* |
9,676 | 2,855,291 | ||||||
Equitable Holdings, Inc. |
14,160 | 433,579 | ||||||
3,288,870 | ||||||||
Diversified Telecommunication Services – 1.0% | ||||||||
AT&T, Inc. |
54,516 | 993,827 | ||||||
Lumen Technologies, Inc.(a) |
22,774 | 167,616 | ||||||
Verizon Communications, Inc. |
4,248 | 158,748 | ||||||
1,320,191 | ||||||||
Electric Utilities – 1.5% | ||||||||
Evergy, Inc. |
944 | 57,707 | ||||||
Exelon Corp. |
18,172 | 701,257 |
See Accompanying Notes to the Financial Statements.
284 | FLEXSHARES ANNUAL REPORT |