FlexShares® Trust
Annual Report
October 31, 2021
Dear Shareholder,
We are delighted to provide this update for the FlexShares exchange traded funds, sponsored and managed by Northern Trust Asset Management (NTAM)1, for the year ended October 31, 2021.
While COVID-19 continued to influence many aspects of our lives, the focus notably shifted in 2021 to the prospect of moving forward. This was certainly the case for the global economy. We believe that the anticipation of a sustainable turnaround coupled with healthy corporate balance sheets fueled investor confidence, while pent-up demand, the re-opening of businesses and fiscal stimulus boosted consumer spending. Both trends supported positive economic results and prospects across markets, sectors and industries.
Such robust activity, after a virtual shutdown of the global economy, presented unanticipated challenges to business models, manufacturing capacities, logistics and supply chains. That, in turn, has contributed to accelerated price increases for many goods and services. As a result, investors may find themselves grappling with questions about the nature and longevity of these inflationary pressures, how they are being addressed, and how to frame an appropriate response.
This annual report includes financial results for each of the FlexShares ETFs in this environment, and commentary and outlooks from NTAM. We trust this information will provide useful clarity and perspective.
I also want to share three recent FlexShares milestones:
¨ | Efficient access to responsible investing: The FlexShares Core ESG2 and Climate suite introduced a new era for us – strategies that seek to address sustainability and climate issues within a core equity or fixed-income |
portfolio. Please visit www.flexshares.com to explore the features and potential benefits of these new ETFs within the context of your portfolio. |
¨ | Expanded reach: With the launch of our ESG-focused ETFs covering developed markets, FlexShares is giving European investors their first opportunity to experience our investor-first approach. We look forward to expanding our product lineup in the region in the months ahead. |
¨ | 10 years, and we’re just getting started: FlexShares began with a promise to seek to deliver efficient investment vehicles to grow capital, generate income, manage portfolio risks and meet liquidity needs. We look back with pride at what we have accomplished in service to that promise and to our clients. We look forward with a renewed sense of purpose and deep gratitude for your continued confidence. |
On behalf of all our partners and colleagues at NTAM and FlexShares, best wishes for health, well-being and prosperity to you and yours.
Sincerely,
Darek Wojnar, CFA
Head, Funds & Managed Account Solutions, Northern Trust Asset Management
The views in this letter were as of October 31, 2021 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.
1 |
Northern Trust Asset Management is the branding name of the asset management business of Northern Trust Corporation, a financial holding company and publicly traded company. |
2 |
ESG investing commonly means utilizing environmental, social, and governance (ESG) criteria as a set of standards for a company’s operations that socially conscious investors use to screen potential investments. |
2 | FLEXSHARES ANNUAL REPORT |
Letter to Shareholders (cont.)
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.
FLEXSHARES ANNUAL REPORT | 3 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Quality Low Volatility Index Fund Ticker: QLV
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | Fund Inception 7/15/2019 |
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FlexShares US Quality Low Volatility Index Fund (Based on Net Asset Value) |
35.05 | % | 15.93 | % | ||||
FlexShares US Quality Low Volatility Index Fund (Based on Market Price) |
34.99 | % | 15.96 | % | ||||
Northern Trust Quality Low Volatility Index |
35.36 | % | 16.24 | % | ||||
Russell 1000® Index |
43.51 | % | 22.94 | % |
All data as of 10/31/21. 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 0.23% 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 (“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 protecting against downside risks during certain market environments. As of October 31, 2021, there were 109 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 ended October 31, 2021, prices on U.S. investments generally traded higher. Through Q4 of 2020, U.S. investments rose as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. The passage of the federal fiscal stimulus package (Consolidated Appropriations Act, 2021) in December along with the U.S. Federal Reserve Bank’s actions to keep interest rates low while continuing quantitative easing measures also supported U.S. investments. Despite a volatile start in January 2021, U.S. domestic investments rose in Q1 of 2021 as several sectors that had previously struggled during the pandemic including energy, financials and industrials helped to lead investments higher. Domestic U.S. investments continued to advance in Q2 of 2021 as
4 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Quality Low Volatility Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
strong consumption growth and industrial production drove those investments higher. The May 2021 report of inflation, as measured by the Consumer Price Index (CPI)1, recorded the largest increase since June 1992, but at the time many investors viewed this as a transitory spike caused by increasing global economic recovery and supply chain disruptions. In Q3 of 2021, U.S. investments remained relatively flat despite strong corporate earnings as investors may have been concerned that future growth would not materialize, and that inflation may be more persistent than previously expected. Domestic U.S. investments advanced in October 2021 due to strong 3rd quarter earnings and robust consumer confidence.
Because U.S. domestic investments trended upwards during the 12 months ended October 31, 2021, we believe the low volatility factor2 approach was a negative driver of Fund performance for the twelve-month period. In addition, we believe that investors once again showed a preference for low quality factor3 companies, resulting in the high-quality factor exposure detracting from Fund performance over the 12 months. Overall, the negative performance derived from the low volatility and quality factor exposures were the primary sources of the Underlying Index’s underperformance against the Russell 1000®4 Index by -8.15%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -31 basis points (“bps”)5, which is reflective of the management fee (-22 bps), stock selection/futures (+3 bps), and the compounding effect of tracking error over time (-12 bps).
1 |
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. Indexes are available for the U.S. and various geographic areas. |
2 |
The low volatility factor is based on the measurement of a group of stocks that have been less volatile in their asset class over a defined time frame. |
3 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
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. |
FLEXSHARES ANNUAL REPORT | 5 |
FlexShares® Developed | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Markets Ex-US Quality Low Volatility Index Fund Ticker: QLVD
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 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) |
22.05 | % | 7.32 | % | ||||
FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (Based on Market Price) |
21.88 | % | 7.47 | % | ||||
Northern Trust Developed Markets ex-US Quality Low Volatility Index |
22.17 | % | 7.55 | % | ||||
MSCI World ex-US Index |
35.59 | % | 11.72 | % |
All data as of 10/31/21. 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 0.33% 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 Index SM (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 protecting against downside risks during certain market environments. As of October 31, 2021, there were 190 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 ended October 31, 2021, prices on Developed international investments generally traded higher. Over the course of the 12-month period, while the U.S. dollar (USD) started off volatile, it ultimately ended flat against other Developed international currencies and generally for U.S. investors did not impact positively or negatively. Through Q4 of 2020, Developed international investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Developed international investments
6 | FLEXSHARES ANNUAL REPORT |
FlexShares® Developed | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Markets Ex-US Quality Low Volatility Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
may have been helped by a Brexit trade agreement between the United Kingdom and the European Union as investor uncertainty around intraregional commerce was alleviated. Developed international investments continued to rise over the 1st half of 2021 due to strong corporate earnings and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. Developed international investments moved modestly lower in Q3 of 2021 due to inflation concerns stemming from supply chain bottlenecks and rising energy prices. Developed international investments rebounded in October 2021 as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
Because Developed international investments trended upwards during the 12 months ended October 31, 2021, we believe the low volatility factor1 approach was a negative driver of Fund performance for the twelve-month period. Additionally, we believe that investors showed a preference for low quality companies within the Developed international universe. Consequently, the quality factor2 focus of the Fund’s Underlying Index was also a negative driver of Fund performance for the 12-month period. Overall, the negative performance derived from both the low volatility and quality factor exposures were the primary sources of the Underlying Index’s underperformance against the MSCI World ex-US Index3 by -13.42%. The tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -12 basis points (“bps”)4, which is reflective of the
Fund’s management fee (-32 bps), stock selection/futures (+20 bps), securities lending (+1 bps), dividend tax differential (+2 bps), and the compounding effect of tracking error over time (-3 bps).
1 |
The low volatility factor is based on the measurement of a group of stocks that have been less volatile in their asset class over a defined time frame. |
2 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
3 |
The Morgan Stanley Capital International 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. |
4 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 7 |
FlexShares® Emerging | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Markets Quality Low Volatility Index Fund Ticker: QLVE
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | Fund Inception 7/15/2019 |
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FlexShares Emerging Markets Quality Low Volatility Index Fund (Based on Net Asset Value) |
12.09 | % | 4.54 | % | ||||
FlexShares Emerging Markets Quality Low Volatility Index Fund (Based on Market Price) |
11.62 | % | 4.78 | % | ||||
Northern Trust Emerging Markets Quality Low Volatility Index |
13.47 | % | 5.37 | % | ||||
MSCI Emerging Markets Index |
16.96 | % | 10.45 | % |
All data as of 10/31/21. 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 0.41% 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 protecting against downside risks during certain market environments. As of October 31, 2021, there were 151 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 ended October 31, 2021, prices on Emerging market investments generally traded higher. Over the course of the 12-month period, while the U.S. dollar (USD) started off volatile, it ultimately weakened against Emerging market currencies and positively impacted U.S. investors as returns in local currencies generally were enhanced by the falling of the USD. Through Q4 of 2020, Emerging market investments moved higher as overall commodity prices rose, USD weakness and news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Chinese investments,
8 | FLEXSHARES ANNUAL REPORT |
FlexShares® Emerging | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Markets Quality Low Volatility Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
however, fell due to increased trading tensions between the U.S. and China as well as the Chinese government’s continued investigations which were viewed by some investors as anti-business. Emerging market investments moved higher in Q1 of 2021 but trailed Developed market investments as COVID vaccine rollout rates trailed Developed nations and some countries were forced to reestablish restrictions due to COVID outbreaks. Emerging market investments rose in Q2 of 2021 as continued investor optimism overcame an early quarter selloff driven by concerns of rising inflation and U.S. monetary policy tightening. Emerging market investments sold off in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and financial companies. Emerging market investments moved modestly higher in October 2021, however, but trailed Developed market investments as region specific investments, such as in Latin America, struggled.
Investors showed a preference for low quality companies in emerging markets for the twelve months ending October 31, 2021, resulting in the high-quality factor1 exposure being a negative driver of Fund performance. The sharp decline in emerging market equities in Q3 of 2021 resulted in low volatility stocks outperforming high volatility stocks over the twelve-month period. As a result, the low volatility factor2 exposure was a positive driver of Fund performance for the fiscal year. Overall, the positive performance derived from the low volatility factor was not enough to offset the negative performance of the quality factor, leading to the Underlying Index’s underperformance against the MSCI Emerging Markets Index3 by -3.49%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -1.38%, which is reflective of the Fund’s management fee of -40 basis points (“bps”)4, which is reflective of
the Fund’s management fee (-40 bps), stock selection/futures (+9 bps), and dividend tax differential (+10 bps).
1 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
2 |
The low volatility factor is based on the measurement of a group of stocks that have been less volatile in their asset class over a defined time frame. |
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. |
FLEXSHARES ANNUAL REPORT | 9 |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Market Factor Tilt Index Fund Ticker: TILT
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
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) |
49.68 | % | 17.10 | % | 14.93 | % | 15.12 | % | ||||||||
FlexShares Morningstar US Market Factor Tilt Index Fund (Based on Market Price) |
49.57 | % | 17.08 | % | 14.92 | % | 15.12 | % | ||||||||
Morningstar® U.S. Market Factor Tilt IndexSM |
50.18 | % | 17.24 | % | 15.11 | % | 15.30 | % |
All data as of 10/31/21. 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 0.26% 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 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 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. As of October 31, 2021, there were 2,733 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 ended October 31, 2021, prices on U.S. investments generally traded higher. Through Q4 of 2020, U.S. investments rose as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. The passage of the federal fiscal stimulus package (Consolidated Appropriations Act, 2021) in December 2020 along with the U.S. Federal Reserve Bank’s actions to keep interest rates low while continuing quantitative easing measures also supported U.S. investments. Despite a volatile start in January 2021, U.S. domestic investments rose in Q1 of 2021 as several sectors that had previously struggled during the pandemic including energy, financials and industrials helped to lead investments higher. Domestic U.S. investments continued to advance in Q2 of 2021 as strong consumption growth and industrial
10 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Market Factor Tilt Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
production drove those investments higher. The May 2021 report of inflation, as measured by the Consumer Price Index (CPI), recorded the largest increase since June 1992, but at the time many investors viewed this as a transitory spike caused by increasing global economic recovery and supply chain disruptions. In Q3 of 2021, U.S. investments remained relatively flat despite strong corporate earnings as investors may have been concerned that future growth would not materialize, and that inflation may be more persistent than previously expected. Domestic U.S. investments advanced in October 2021 due to strong 3rd quarter earnings and robust consumer confidence, but at the time many investors viewed this as a transitory spike caused by increasing global economic recovery and supply chain disruptions.
Because U.S. domestic investments trended upwards during the 12 months ended October 31, 2021, we believe the value factor1 was a positive driver of Fund performance during the fiscal year ended October 31, 2021 as value stocks outperformed growth stocks2. In addition, the 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 value and size factor exposures was the primary source of the Underlying Index’s outperformance against the Russell 3000®4 Index by 6.28%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -50 basis points (“bps”)5,
which is reflective of the management fee (-25 bps), stock selection/futures (-9 bps), securities lending (+3 bps), and compounding of tracking error over time (-19 bps).
1 |
The value factor is based on a belief that stocks that are inexpensive relative to some measure of fundamental value outperform those that are pricier. |
2 |
Growth stocks are defined as stock in companies that are anticipated to grow at a rate significantly above the average for the market. |
3 |
The size factor is measured by a stock’s total capitalization which can be found by multiplying the current share price by all the outstanding shares of stock. Large cap generally means stocks with a total capitalization of more than $10 billion. Mid cap is between $2 billion and $10 billion. Small cap is less than $2 billion in total capitalization. |
4 |
The Russell 3000 Index is a market-capitalization-weighted equity index that seeks to track 3000 of the largest U.S.-traded stocks. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 11 |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Developed Markets ex-US Factor Tilt Index Fund Ticker: TLTD
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 9/25/2012 |
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FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (Based on Net Asset Value) |
38.79 | % | 10.31 | % | 8.85 | % | 7.07 | % | ||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (Based on Market Price) |
38.95 | % | 10.50 | % | 8.90 | % | 7.09 | % | ||||||||
Morningstar® Developed Markets ex-US Factor Tilt IndexSM |
38.92 | % | 10.33 | % | 8.89 | % | 7.17 | % |
All data as of 10/31/21. 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 0.40% 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. As of October 31, 2021, there were 3,403 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 ended October 31, 2021, prices on Developed international investments generally traded higher. Over the course of the 12-month period, while the U.S. dollar (USD) started off volatile, it ultimately ended flat against other Developed international currencies and generally for U.S. investors did not impact positively or negatively. Through Q4 of 2020, Developed international investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Developed international investments may have been helped by a Brexit trade agreement between the United Kingdom and the European Union as investor uncertainty around intraregional commerce was alleviated. Developed international investments
12 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Developed Markets ex-US Factor Tilt Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
continued to rise over the 1st half of 2021 due to strong corporate earnings and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. Developed international investments moved modestly lower in Q3 of 2021 due to inflation concerns stemming from supply chain bottlenecks and rising energy prices. Developed international investments rebounded in October of 2021 as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
Because Developed international investments trended upwards during the 12 months ended October 31, 2021, we believe the value factor1 was a positive driver of Fund performance during the fiscal year ended October 31, 2021 as value stocks outperformed growth stocks2. The size factor3, 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 value factor exposures offset the negative performance of the size factor, leading to the Underlying Index’s outperformance against the MSCI World ex-USA IMI Index4 by 3.08%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -13 basis points (“bps”)5,
which is reflective of the Fund’s management fee (-39 bps), stock selection/futures (+1 bps), securities lending (+9 bps), dividend tax differential (+21 bps), and compounding of tracking error over time (-5 bps).
1 |
The value factor is based on a belief that stocks that are inexpensive relative to some measure of fundamental value outperform those that are pricier. |
2 |
Growth stocks are defined as stock in companies that are anticipated to grow at a rate significantly above the average for the market. |
3 |
The size factor is measured by a stock’s total capitalization which can be found by multiplying the current share price by all the outstanding shares of stock. Large cap generally means stocks with a total capitalization of more than $10 billion. Mid cap is between $2 billion and $10 billion. Small cap is less than $2 billion in total capitalization. |
4 |
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. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 13 |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Emerging Markets Factor Tilt Index Fund Ticker: TLTE
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 9/25/2012 |
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|
|
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FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (Based on Net Asset Value) |
28.95 | % | 11.08 | % | 7.79 | % | 4.38 | % | ||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (Based on Market Price) |
30.12 | % | 11.50 | % | 7.73 | % | 4.41 | % | ||||||||
Morningstar® Emerging Markets Factor Tilt IndexSM |
30.40 | % | 11.98 | % | 8.58 | % | 5.13 | % |
All data as of 10/31/21. 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 0.60% 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. As of October 31, 2021, there were 3,183 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 ended October 31, 2021, prices on Emerging market investments generally traded higher. Over the course of the 12-month period, while the U.S. dollar (USD) started off volatile, it ultimately weakened against Emerging market currencies and positively impacted U.S. investors as returns in local currencies generally were enhanced by the falling of the USD. Through Q4 of 2020, Emerging market investments moved higher as overall commodity prices rose; USD weakness and news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Chinese investments, however, fell due to increased trading tensions between the U.S. and China as well as the Chinese government’s continued investigations which were viewed by some investors as anti-business. Emerging market
14 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Emerging Markets Factor Tilt Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
investments moved higher in Q1 of 2021 but trailed Developed market investments as COVID vaccine rollout rates trailed Developed nations and some countries were forced to reestablish restrictions due to COVID outbreaks. Emerging market investments rose in Q2 of 2021 as continued investor optimism overcame an early quarter selloff driven by concerns of rising inflation and U.S. monetary policy tightening. Emerging market investments sold off in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and financial companies. Emerging market investments moved modestly higher in October 2021, but trailed Developed market investments as region-specific investments, such as in Latin America, struggled.
Investors showed a preference for value companies in emerging markets for the twelve months ending October 31, 2021, resulting in the high value factor1 exposure being a positive driver of Fund performance as value stocks outperformed growth stocks.2 In addition, the 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 value and size factor exposures was the primary source of the Underlying Index’s outperformance against the MSCI EM IMI Net Index4 by 10.69%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -1.45%, which is reflective of the Fund’s management fee of -59 basis points (“bps”)5, stock selection/futures (-20 bps),
securities lending (+9 bps) and dividend tax differential (+1 bps), performance calculation differences between the Underlying Index and the Fund (+1 bp), India Capital Gains Taxes (-31 bps), and compounding of tracking error over time (-46 bps).
1 |
The value factor is based on a belief that stocks that are inexpensive relative to some measure of fundamental value outperform those that are pricier. |
2 |
Growth stocks are defined as stock in companies that are anticipated to grow at a rate significantly above the average for the market. |
3 |
The size factor is measured by a stock’s total capitalization which can be found by multiplying the current share price by all the outstanding shares of stock. Large cap generally means stocks with a total capitalization of more than $10 billion. Mid cap is between $2 billion and $10 billion. Small cap is less than $2 billion in total capitalization. |
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. |
FLEXSHARES ANNUAL REPORT | 15 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Quality Large Cap Index Fund Ticker: QLC
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 9/23/2015 |
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|
|
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FlexShares US Quality Large Cap Index Fund Index Fund (Based on Net Asset Value) |
43.21 | % | 16.51 | % | 15.83 | % | 13.98 | % | ||||||||
FlexShares US Quality Large Cap Index Fund Index Fund (Based on Market Price) |
43.09 | % | 16.47 | % | 15.82 | % | 13.97 | % | ||||||||
Northern Trust Quality Large Cap IndexSM |
43.77 | % | 16.80 | % | 16.17 | % | 14.31 | % | ||||||||
S&P 500 Index |
42.91 | % | 21.51 | % | 18.95 | % | 17.46 | % |
All data as of 10/31/21. 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 0.33% 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 Quality Large Cap 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 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. As of October 31, 2021, there were 159 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 ended October 31, 2021, prices on U.S. investments generally traded higher. Through Q4 of 2020, U.S. investments rose as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. The passage of the federal fiscal stimulus package (Consolidated Appropriations Act, 2021) in December 2020 along with the U.S. Federal Reserve Bank’s actions to keep interest rates low while continuing quantitative easing measures also supported U.S. investments. Despite a volatile start in January 2021, U.S. domestic investments rose in Q1 of 2021 as several sectors that had previously struggled during the pandemic including energy, financials and industrials helped to lead investments higher. Domestic U.S. investments continued to advance in Q2 of 2021 as strong consumption growth and industrial production drove those investments higher. The May 2021 report of inflation, as measured by the Consumer Price Index (CPI), recorded the largest increase since June 1992, but at the time many investors viewed this as
16 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Quality Large Cap Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
a transitory spike caused by increasing global economic recovery and supply chain disruptions. In Q3 of 2021, U.S. investments remained relatively flat despite strong corporate earnings as investors may have been concerned that future growth would not materialize, and that inflation may be more persistent than previously expected. Domestic U.S. investments advanced in October 2021 due to strong 3rd quarter earnings and robust consumer confidence.
Because U.S. domestic investments trended upwards during the 12 months ended October 31, 2021, we believe the value factor1 was a positive driver of Fund performance during the fiscal year ended October 31, 2021 as value stocks outperformed growth stocks2. In addition, we believe that investors showed a preference for high quality factor3 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 exposure4 of the Underlying Index was a negative driver of Fund performance as positive momentum companies underperformed negative momentum companies over the twelve months. Overall, the positive performance from the value and quality exposures offset the negative performance from the momentum exposure and the Underlying Index outperformed the S&P 500 Index5 by 0.86%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -56 basis points (“bps”)6, which is reflective of the management fee
(-32 bps), stock selection/futures (+1 bps), securities lending (+1 bps), performance calculation differences between the Underlying Index and the Fund (-1 bps) and compounding of tracking error over time (-25 bps).
1 |
The value factor is based on a belief that stocks that are inexpensive relative to some measure of fundamental value outperform those that are pricier. |
2 |
Growth stocks are defined as stock in companies that are anticipated to grow at a rate significantly above the average for the market. |
3 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
4 |
Momentum in a stock is described as the tendency for the stock price to continue rising if it is going up and to continue declining if it is going down. |
5 |
The Standard & Poor’s 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in 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. |
FLEXSHARES ANNUAL REPORT | 17 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
STOXX® US ESG Select Index Fund Ticker: ESG
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 7/13/2016 |
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|
|
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FlexShares STOXX® US ESG Select Index Fund (Based on Net Asset Value) |
44.15 | % | 22.41 | % | 19.56 | % | 18.41 | % | ||||||||
FlexShares STOXX® US ESG Select Index Fund (Based on Market Price) |
44.12 | % | 22.44 | % | 19.56 | % | 18.42 | % | ||||||||
STOXX® USA ESG Select KPIs Index |
44.04 | % | 22.12 | % | 18.97 | % | 17.82 | % | ||||||||
Russell 1000® Index |
43.51 | % | 22.05 | % | 19.19 | % | 17.84 | % |
All data as of 10/31/21. 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 0.33% 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 IndexSM (“Underlying Index”). The Underlying Index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to environmental, social and governance (“ESG”)1 characteristics relative to the STOXX® USA 900 Index, a float adjusted market-capitalization weighted index of U.S.-incorporated companies. As of October 31, 2021, there were 274 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 ended October 31, 2021, prices on U.S. investments generally traded higher. Through Q4 of 2020, U.S. investments rose as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. The passage of the federal fiscal stimulus package (Consolidated Appropriations Act, 2021) in December along with the U.S. Federal Reserve Bank’s actions to keep interest rates low while continuing quantitative easing measures also supported U.S. investments. Despite a volatile start in January, U.S. domestic investments rose in Q1 of 2021 as several sectors that had previously struggled during the pandemic including energy, financials and industrials helped to lead investments higher. Domestic U.S. investments continued to advance in Q2 of 2021 as strong consumption growth and industrial production drove those investments higher. The May 2021 report of inflation, as measured by the Consumer Price
1 |
ESG investing is defined as utilizing environmental, social, and governance (ESG) criteria as a set of standards for a company’s operations that socially conscious investors use to screen potential investments. |
18 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
STOXX® US ESG Select Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Index (CPI), recorded the largest increase since June 1992, but at the time many investors viewed this as a transitory spike caused by increasing global economic recovery and supply chain disruptions. In Q3 of 2021, U.S. investments remained relatively flat despite strong corporate earnings as investors may have been concerned that future growth would not materialize, and that inflation may be more persistent than previously expected. Domestic U.S. investments advanced in October due to strong 3rd quarter earnings and robust consumer confidence.
The Underlying Index had a positive total return during the 12 months ended October 31, 2021, and outperformed domestic equity markets, as defined by the Russell 1000 Index2, by 0.53%. The Underlying Index’s ESG-tilted approach led to beneficial overweight Fund exposure to the consumer discretionary, energy and healthcare sectors. Overweight exposure to the consumer staples and communication sectors detracted from Fund performance. Likewise, the ESG tilt led to underweights to the financials, utilities, technology and real estate sectors that were positive drivers of Fund performance but underweights to industrials and materials that detracted from Fund performance. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was +11 basis points (“bps”)3, which is reflective of the management fee (-32 bps), stock selection/futures (-9 bps), dividend tax differential (+46 bps) and compounding of tracking error over time (+6 bps).
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. |
FLEXSHARES ANNUAL REPORT | 19 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
STOXX® Global ESG Select Index FundTicker: ESGG
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 7/13/2016 |
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|
|
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FlexShares STOXX® Global ESG Select Index Fund (Based on Net Asset Value) |
42.10 | % | 19.58 | % | 16.60 | % | 15.81 | % | ||||||||
FlexShares STOXX® Global ESG Select Index Fund (Based on Market Price) |
41.84 | % | 19.48 | % | 16.66 | % | 15.86 | % | ||||||||
STOXX® Global ESG Select KPIs Index |
42.22 | % | 19.66 | % | 16.64 | % | 15.83 | % | ||||||||
MSCI World Index |
40.42 | % | 18.24 | % | 15.47 | % | 14.58 | % |
All data as of 10/31/21. 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 0.43% 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 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 environmental, social and governance (“ESG”)1 characteristics relative to the STOXX® Global 1800 Index, the parent index, a float-adjusted market-capitalization weighted index of companies incorporated in the U.S. or in developed international markets. As of October 31, 2021, there were 888 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 ended October 31, 2021, prices on Global market investments (including U.S., Developed and Emerging markets) generally traded higher. Through Q4 of 2020, Global market investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Global investments continued to rise over the 1st half of 2021 due to strong corporate earnings and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. Global market investments moved lower in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and
1 |
ESG investing is defined as utilizing environmental, social, and governance (ESG) criteria as a set of standards for a company’s operations that socially conscious investors use to screen potential investments. |
20 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
STOXX® Global ESG Select Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
financial companies. Inflation concerns stemming from supply chain bottlenecks and rising energy prices also drove Global market investments lower. Global market investments rebounded in October 2021 as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
The Underlying Index had a positive total return during the 12 months ended October 31, 2021 and outperformed global equity markets, as defined by the MSCI World Index2, by 1.80%. The Underlying Index’s ESG-tilted approach led to beneficial overweight Fund exposure to the technology, consumer discretionary and energy sectors. The overweight exposure to the consumer staples sector detracted from Fund performance. Likewise, the ESG tilt led to underweights to the financials, utilities, industrials, communications, materials and real estate sectors that were positive drivers of Fund performance. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -12 basis points (“bps”)3, which is reflective of the management fee (-42 bps), stock selection/futures (-5 bps), securities lending (+1 bps), dividend tax differential (+40 bps), and compounding of tracking error over time (-6 bps).
2 |
The Morgan Stanley Capital International World Index captures large and mid-cap representation across 23 Developed Markets countries. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 21 |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Upstream Natural Resources Index Fund Ticker: GUNR
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 5 Year | 10 Year | Fund Inception 9/16/2011 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund (Based on Net Asset Value) |
49.70 | % | 10.41 | % | 3.76 | % | 3.71 | % | ||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund (Based on Market Price) |
49.58 | % | 10.43 | % | 3.85 | % | 3.74 | % | ||||||||
Morningstar® Global Upstream Natural Resources IndexSM |
50.56 | % | 10.94 | % | 4.20 | % | 4.12 | % |
All data as of 10/31/21. 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 0.47% 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 domiciled in global 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, 2021, 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 first half of the fiscal year ended October 31, 2021, commodity and natural resources prices in many sectors moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Over the course of the 12-month period, while the U.S. dollar (USD) started off volatile, it ultimately weakened, and positively impacted U.S. investors as returns in local currencies of natural resources generally were enhanced by the falling of the USD. Emergence of the Delta variant of the COVID virus led to the reimposition of restrictions resulting in a slowdown of economic growth during the calendar third quarter. Global market investments (including U.S., Developed and Emerging markets) rebounded in October.
22 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Upstream Natural Resources Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Production discipline by the Organization of Petroleum Exporting Countries (OPEC) and other oil producers, combined with increased energy demand as economies reopened, led to steadily increasing crude oil and natural gas price increases. West Texas Intermediate (“WTI”) crude oil prices began the fiscal year under $32 per barrel but ended the year over $80 per barrel1. Natural gas was up nearly 80%2 during the same time span, as the sector appeared to have finally worked off excess supplies that had been depressing prices.
Overall Industrial metals prices, such as copper, aluminum, zinc, nickel and tin were higher for the fiscal year. Prices moved higher powered by supply shortages as production was disrupted by COVID induced labor issues. Precious metals price performance was mixed as gold declined while silver posted a small increase. Metals used in electric vehicle and battery product such as cobalt and lithium saw strong price performance due to increasing demand and lack of supply.
Grains posted strong price performance, the highest seen in years in the U.S., as lower global supplies due to weather and COVID labor sourcing issues was met with increased demand for food inputs. Protein prices (cattle, hogs, poultry, and fish) also posted strong price performance. U.S. fertilizer chemical (potash, nitrogen, phosphate) were all materially higher on supply constraints and global demand for agricultural products. U.S. lumber prices were especially volatile during the fiscal year. Robust housing demand combined with lumber mill capacity issues drove lumber futures prices3 up 230% by early May 2021. Once these severe supply issues were overcome, lumber futures had declined by the end of the fiscal year.
For the 12-month period ended October 31, 2021, the Underlying Index underperformed the global natural resource equity markets, as defined by the S&P Global Natural Resources Index4, by -259 basis points (bps)5. Due to the Underlying Index’s focus on the upstream section of the natural resource supply chain, there was no Fund exposure to the steel sector which posted robust returns. Additionally, exposure to underperforming agricultural companies in China and other non-U.S. markets contributed to Fund underperformance. Positive contribution to Fund performance came from the upstream focus in timber and energy sectors. Tracking difference for the period between the Fund’s NAV and the Underlying Index was -86 bps, which is reflective of the Fund’s management fee (-46 bps), futures (-13 bps), foreign dividend tax differential treatment (+5 bps), securities lending (+4 bps), security selection (+3 bps), transaction costs (-3 bps), and other expenses including compounding of expenses during rising markets (-36 bps).
1 |
Source: Bloomberg, USCRWTIC Index (October 31, 2020 – October 31, 2021). |
2 |
Source: Bloomberg, NGUSHHUB Commodity (October 31, 2020 – October 31, 2021). |
3 |
Source: Bloomberg, LB1 Lumber Generic Near Term Commodity Contract (October 31, 2020 – October 31, 2021). |
4 |
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. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 23 |
FlexShares® STOXX® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Broad Infrastructure Index Fund Ticker: NFRA
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 10/8/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund (Based on Net Asset Value) |
22.85 | % | 11.25 | % | 8.69 | % | 7.38 | % | ||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund (Based on Market Price) |
22.51 | % | 11.41 | % | 8.66 | % | 7.39 | % | ||||||||
STOXX® Global Broad Infrastructure Index |
22.72 | % | 11.13 | % | 8.55 | % | 7.29 | % |
All data as of 10/31/21. 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 0.48% 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. Infrastructure companies generally include, without limitation, entities that own or operate location-specific capital-intensive assets characterized by high barriers to entry, essential services with inelastic demand, regulated pricing, and reliable or relatively stable revenue streams. As of October 31, 2021, there were 177 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 ended October 31, 2021, prices on Global market investments (including U.S., Developed and Emerging markets) generally traded higher. Through Q4 of 2020, Global market investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Global investments continued to rise over the 1st half of 2021 due to strong corporate earnings and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. Global market investments moved lower in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and
24 | FLEXSHARES ANNUAL REPORT |
FlexShares® STOXX® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Broad Infrastructure Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
financial companies. Inflation concerns stemming from supply chain bottlenecks and rising energy prices also drove Global market investments lower. Global market investments rebounded in October 2021 as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
The Underlying Index had a positive total return during the 12 months ended October 31, 2021, but underperformed the global equity real estate markets, as defined by the FTSE EPRA/NAREIT Developed Net Index1, by -1.94%. The Underlying Index’s exposures to the communication, transportation and energy sectors negatively contributed to Fund performance, while exposure to utilities and social 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 +13 basis points (“bps”)2, which is reflective of the Fund’s management fee (-47 bps), stock selection/futures (+6 bps), securities lending (+3 bps), dividend tax differential (+49 bps) and compounding of tracking error over time (+2 bps).
1 |
The FTSE EPRA/Nareit Global Real Estate Index is an index designed to track the performance of listed real estate companies in both developed and emerging countries worldwide. |
2 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 25 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Quality Real Estate Index Fund Ticker: GQRE
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 11/5/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Global Quality Real Estate Index Fund (Based on Net Asset Value) |
40.58 | % | 9.87 | % | 7.37 | % | 7.30 | % | ||||||||
FlexShares Global Quality Real Estate Index Fund (Based on Market Price) |
40.98 | % | 10.01 | % | 7.40 | % | 7.33 | % | ||||||||
Northern Trust Global Quality Real Estate IndexSM |
40.18 | % | 9.76 | % | 7.29 | % | 7.21 | % | ||||||||
FTSE EPRA/NAREIT Developed IndexSM |
42.12 | % | 9.64 | % | 7.00 | % | 6.23 | % |
All data as of 10/31/21. 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 0.46% 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, 2021, there were 140 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 ended October 31, 2021, prices on Global market investments (including U.S., Developed and Emerging markets) generally traded higher. Through Q4 of 2020, Global market investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Global investments continued to rise over the 1st half of 2021 due to strong corporate earnings and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. Global market investments moved lower in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real
26 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Global Quality Real Estate Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and financial companies. Inflation concerns stemming from supply chain bottlenecks and rising energy prices also drove Global market investments lower. Global market investments rebounded in October 2021 as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
The Underlying Index had a positive total return during the 12 months ended October 31, 2021, but underperformed the global equity real estate markets, as defined by the FTSE EPRA/NAREIT Developed Net Index1, by -1.94%. The quality2 and momentum3 factor exposures of the Underlying Index were negative drivers of Fund performance while the value4 factor exposure was a positive driver of Fund performance. Overall, the positive exposure to value was not enough to offset the headwinds from the negative performance derived from the quality and momentum exposures. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the period was +40 basis points (“bps”)5, which is reflective of the Fund’s
management fee (-45 bps), stock selection/futures (+30 bps), securities lending (+2 bps), dividend tax differential (+35 bps), and compounding of tracking error over time (+18 bps).
1 |
The FTSE EPRA/Nareit Global Real Estate 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 based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
3 |
Momentum in a stock is described as the tendency for the stock price to continue rising if it is going up and to continue declining if it is going down. |
4 |
The value factor is based on a belief that stocks that are inexpensive relative to some measure of fundamental value outperform those that are pricier. |
5 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 27 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Real Assets Allocation Index Fund Ticker: ASET
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 11/23/2015 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Real Assets Allocation Index Fund (Based on Net Asset Value) |
33.70 | %* | 11.27 | % | 8.52 | % | 8.11 | % | ||||||||
FlexShares Real Assets Allocation Index Fund (Based on Market Price) |
33.74 | % | 11.25 | % | 8.52 | % | 8.11 | % | ||||||||
Northern Trust Real Assets Allocation IndexSM |
33.84 | % | 11.41 | % | 8.66 | % | 8.23 | % | ||||||||
MSCI ACWI Index |
37.28 | % | 17.50 | % | 14.74 | % | 12.72 | % |
All data as of 10/31/21. 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 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 Index (the “Underlying Index”). The Fund is a fund of funds and seeks its investment objective by investing primarily in the shares of other FlexShares ETFs (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, 2021, 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 and to manage the Fund. 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 ended October 31, 2021, prices on Global market investments (including U.S., Developed and Emerging markets) generally traded higher. Through Q4 of 2020, Global market investments
28 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Real Assets Allocation Index Fund (cont.)
* |
The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $33.66 as of October 31, 2021. |
PORTFOLIO ANALYSIS (cont.)
moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Global investments continued to rise over the 1st half of 2021 due to strong corporate earnings and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. Global market investments moved lower in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and financial companies. Inflation concerns stemming from supply chain bottlenecks and rising energy prices also drove Global market investments lower. Global market investments rebounded in October as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
The Underlying Index had a positive total return during the 12 months ended October 31, 2021, but underperformed the global equity markets, as defined by the MSCI All Country World Index (ACWI)1 by -4.04%. The Fund underperformed due to the Underlying Index’s greater allocation to infrastructure relative to its real estate and natural resource allocations. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the period was -14 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), and compounding of tracking error over time (-3 bps).
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. |
FLEXSHARES ANNUAL REPORT | 29 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Index Fund Ticker: QDF
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 12/14/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Quality Dividend Index Fund (Based on Net Asset Value) |
37.27 | % | 13.04 | % | 12.88 | % | 13.26 | % | ||||||||
FlexShares Quality Dividend Index Fund (Based on Market Price) |
37.20 | % | 13.04 | % | 12.86 | % | 13.26 | % | ||||||||
Northern Trust Quality Dividend IndexSM |
37.76 | % | 13.79 | % | 13.52 | % | 13.81 | % | ||||||||
Russell 1000® Index |
43.51 | % | 22.05 | % | 19.19 | % | 16.59 | % |
All data as of 10/31/21. 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 0.38% 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 Index SM (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 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, 2021, there were 126 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 ended October 31, 2021, prices on U.S. investments generally traded higher. Through Q4 of 2020, U.S. investments rose as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. The passage of the federal fiscal stimulus package (Consolidated Appropriations Act, 2021) in December 2020 along with the U.S. Federal Reserve Bank’s actions to keep interest rates
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. 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. |
30 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
low while continuing quantitative easing measures also supported U.S. investments. Despite a volatile start in January 2021, U.S. domestic investments rose in Q1 of 2021 as several sectors that had previously struggled during the pandemic including energy, financials and industrials helped to lead investments higher. Domestic U.S. investments continued to advance in Q2 as strong consumption growth and industrial production drove those investments higher. The May 2021 report of inflation, as measured by the Consumer Price Index (CPI), recorded the largest increase since June 1992, but at the time many investors viewed this as a transitory spike caused by increasing global economic recovery and supply chain disruptions. In Q3, U.S. investments remained relatively flat despite strong corporate earnings as investors may have been concerned that future growth would not materialize, and that inflation may be more persistent than previously expected. Domestic U.S. investments advanced in October 2021 due to strong 3rd quarter earnings and robust consumer confidence.
U.S. domestic investments trended upwards during the 12 months ended October 31, 2021, and we believe the quality factor3 was a negative driver of Fund performance during the fiscal year ended October 31, 2021. As the U.S. economy recovered from the global lockdown, however, U.S. investments expanded in several areas hardest hit during the pandemic. Because of this expansion during the second half of the fiscal year, the dividend yield factor4 became a positive driver of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments. Overall, the positive performance derived from the dividend factor was not enough to offset the negative performance derived from the quality
exposure. Consequently, the Underlying Index underperformed the Russell 1000® Index5 by -5.75%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -49 basis points (“bps”)6, which is reflective of the management fee (-37 bps), securities lending (+1 bps), performance calculation differences between the Underlying Index and the Fund (+1 bps), and compounding of tracking error over time (-14 bps).
3 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
4 |
Dividend yield factor is the percentage of an investments price that a company is projected to pay out as dividends. |
5 |
Russell 1000® Index is a free float-adjusted market capitalization index which measures the performance of the 1,000 largest companies in the Russell 3000 Index, based on market capitalization. |
6 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 31 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Defensive Index Fund Ticker: QDEF
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 12/14/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Quality Dividend Defensive Index Fund (Based on Net Asset Value) |
34.28 | % | 12.64 | % | 12.78 | % | 13.05 | % | ||||||||
FlexShares Quality Dividend Defensive Index Fund (Based on Market Price) |
34.19 | % | 12.63 | % | 12.77 | % | 13.05 | % | ||||||||
Northern Trust Quality Dividend Defensive IndexSM |
34.77 | % | 13.14 | % | 13.44 | % | 13.62 | % | ||||||||
Russell 1000® Index |
43.51 | % | 22.05 | % | 19.19 | % | 16.59 | % |
All data as of 10/31/21. 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 0.38% 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 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, 2021, there were 126 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 ended October 31, 2021, prices on U.S. investments generally traded higher. Through Q4 of 2020, U.S. investments rose as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. The passage of the federal fiscal stimulus package (Consolidated Appropriations Act, 2021) in December 2020 along with the U.S. Federal Reserve Bank’s actions to keep interest rates
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. 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. |
32 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Defensive Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
low while continuing quantitative easing measures also supported U.S. investments. Despite a volatile start in January 2021, U.S. domestic investments rose in Q1 of 2021 as several sectors that had previously struggled during the pandemic including energy, financials and industrials helped to lead investments higher. Domestic U.S. investments continued to advance in Q2 of 2021 as strong consumption growth and industrial production drove those investments higher. The May 2021 report of inflation, as measured by the Consumer Price Index (CPI), recorded the largest increase since June 1992, but at the time many investors viewed this as a transitory spike caused by increasing global economic recovery and supply chain disruptions. In Q3 of 2021, U.S. investments remained relatively flat despite strong corporate earnings as investors may have been concerned that future growth would not materialize, and that inflation may be more persistent than previously expected. Domestic U.S. investments advanced in October 2021 due to strong 3rd quarter earnings and robust consumer confidence.
U.S. domestic investments trended upwards during the 12 months ended October 31, 2021, and we believe both the quality factor3 and the lower beta exposure were negative drivers of Fund performance during the fiscal year ended October 31, 2021. As the U.S. economy recovered from the global lockdown, however, U.S. investments expanded in several areas hardest hit during the pandemic. Because of this expansion during the second half of the fiscal year, the dividend yield factor4 became a positive driver of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments. Overall, the positive performance derived from the dividend factor was not enough to offset the negative performance derived from the quality and lower beta exposure.
Consequently, the Underlying Index underperformed the Russell 1000® Index5 by -8.74%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -49 basis points (“bps”)6, which is reflective of the management fee (-37 bps), stock selection/futures (+4 bps), securities lending (+1 bps), and compounding of tracking error over time (-17 bps).
3 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
4 |
Dividend yield factor is the percentage of an investments price that a company is projected to pay out as dividends. |
5 |
Russell 1000® Index is a free float-adjusted market capitalization index which measures the performance of the 1,000 largest companies in the Russell 3000 Index, based on market capitalization. |
6 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 33 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Dynamic Index Fund Ticker: QDYN
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 12/14/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Quality Dividend Dynamic Index Fund (Based on Net Asset Value) |
45.38 | % | 17.58 | % | 15.46 | % | 14.13 | % | ||||||||
FlexShares Quality Dividend Dynamic Index Fund (Based on Market Price) |
45.32 | % | 17.59 | % | 15.44 | % | 14.13 | % | ||||||||
Northern Trust Quality Dividend Dynamic IndexSM |
46.03 | % | 17.95 | % | 15.83 | % | 14.51 | % | ||||||||
Russell 1000® Index |
43.51 | % | 22.05 | % | 19.19 | % | 16.59 | % |
All data as of 10/31/21. 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 0.38% 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 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, 2021, there were 128 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 ended October 31, 2021, prices on U.S. investments generally traded higher. Through Q4 of 2020, U.S. investments rose as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. The passage of the federal fiscal stimulus package (Consolidated Appropriations Act, 2021) in December 2020 along with the U.S. Federal Reserve Bank’s actions to keep interest rates low while continuing quantitative easing
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. 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. |
34 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Dynamic Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
measures also supported U.S. investments. Despite a volatile start in January 2021, U.S. domestic investments rose in Q1 of 2021 as several sectors that had previously struggled during the pandemic including energy, financials and industrials helped to lead investments higher. Domestic U.S. investments continued to advance in Q2 of 2021 as strong consumption growth and industrial production drove those investments higher. The May 2021 report of inflation, as measured by the Consumer Price Index (CPI), recorded the largest increase since June 1992, but at the time many investors viewed this as a transitory spike caused by increasing global economic recovery and supply chain disruptions. In Q3 of 2021, U.S. investments remained relatively flat despite strong corporate earnings as investors may have been concerned that future growth would not materialize, and that inflation may be more persistent than previously expected. Domestic U.S. investments advanced in October 2021 due to strong 3rd quarter earnings and robust consumer confidence.
U.S. domestic investments trended upwards during the 12 months ended October 31, 2021, and we believe the quality factor3 was a negative driver of Fund performance during the fiscal year ended October 31, 2021. As the U.S. economy recovered from the global lockdown, however, U.S. investments expanded in several areas hardest hit during the pandemic. Because of this expansion during the second half of the fiscal year, the dividend yield factor4 and the higher beta exposure were positive drivers of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments and higher beta investments generally fared better than lower beta investments. Consequently, the Underlying Index outperformed the Russell 1000® Index5 by 2.52%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -65 basis points (“bps”)6, which is reflective
of the management fee (-37 bps), stock selection/futures (-20 bps), securities lending (+1 bps), performance calculation differences between the Underling Index and the Fund (+1 bps), and compounding of tracking error over time (-10 bps).
3 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
4 |
Dividend yield factor is the percentage of an investments price that a company is projected to pay out as dividends. |
5 |
Russell 1000® Index is a free float-adjusted market capitalization index which measures the performance of the 1,000 largest companies in the Russell 3000 Index, based on market capitalization. |
6 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 35 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
International Quality Dividend Index Fund Ticker: IQDF
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 4/12/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares International Quality Dividend Index Fund (Based on Net Asset Value) |
32.42 | % | 9.34 | % | 7.29 | % | 4.40 | % | ||||||||
FlexShares International Quality Dividend Index Fund (Based on Market Price) |
32.85 | % | 9.69 | % | 7.35 | % | 4.46 | % | ||||||||
Northern Trust International Quality Dividend IndexSM |
32.93 | % | 9.62 | % | 7.52 | % | 4.77 | % | ||||||||
MSCI ACWI ex USA Index |
29.66 | % | 12.02 | % | 9.79 | % | 6.14 | % |
All data as of 10/31/21. 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 0.48% 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 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, 2021, there were 226 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 ended October 31, 2021, prices on International market investments (including Developed and Emerging markets) generally traded higher. Through Q4 of 2020, International market investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. International investments continued to rise over the 1st half of 2021 due to strong corporate earnings
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. 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. |
36 | FLEXSHARES ANNUAK REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
International Quality Dividend Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. International market investments moved lower in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and financial companies. Inflation concerns stemming from supply chain bottlenecks and rising energy prices also drove International market investments lower. International market investments rebounded in October 2021 as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
International investments trended upwards during the 12 months ended October 31, 2021, and we believe the quality factor3 was a negative driver of Fund performance during the fiscal year ended October 31, 2021. As international economies recovered from the global lockdown, however, International investments expanded in several areas hardest hit during the pandemic. Because of this expansion during the second half of the fiscal year, the dividend yield factor4 became a positive driver of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments. Overall, the positive performance derived from the dividend factor offset the negative performance derived from the quality exposure. Consequently, the Underlying Index overperformed the MSCI ACWI ex USA Index5 by 3.27%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -51 basis points (“bps”)6, which is reflective
of the Fund’s management fee (-47 bps), stock selection/futures (+2 bps), securities lending (+3 bps), performance calculation differences between the Underlying Index and the Fund (+1 bps), and compounding of tracking error over time (-10 bps).
3 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
4 |
Dividend yield factor is the percentage of an investments price that a company is projected to pay out as dividends. |
5 |
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. |
6 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAK REPORT | 37 |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Defensive Index Fund Ticker: IQDE
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 4/12/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares International Quality Dividend Defensive Index Fund (Based on Net Asset Value) |
29.03 | % | 8.16 | % | 5.98 | % | 3.56 | % | ||||||||
FlexShares International Quality Dividend Defensive Index Fund (Based on Market Price) |
28.97 | % | 8.31 | % | 5.90 | % | 3.55 | % | ||||||||
Northern Trust International Quality Dividend Defensive IndexSM |
29.50 | % | 8.47 | % | 6.23 | % | 4.06 | % | ||||||||
MSCI ACWI ex USA Index |
29.66 | % | 12.02 | % | 9.79 | % | 6.14 | % |
All data as of 10/31/21. 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 0.48% 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 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, 2021, 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 ended October 31, 2021, prices on International market investments (including Developed and Emerging markets) generally traded higher. Through Q4 of 2020, International market investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. International investments continued to rise over the 1st half of 2021 due to strong corporate earnings
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. 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. |
38 | FLEXSHARES ANNUAK REPORT |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Defensive Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. International market investments moved lower in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and financial companies. Inflation concerns stemming from supply chain bottlenecks and rising energy prices also drove International market investments lower. International market investments rebounded in October 2021 as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
International investments trended upwards during the 12 months ended October 31, 2021, and we believe the quality factor4 and the lower beta exposure were negative drivers of Fund performance during the fiscal year ended October 31, 2021. As international economies recovered from the global lockdown, however, International investments expanded in several areas hardest hit during the pandemic. Because of this expansion during the second half of the fiscal year, the dividend yield factor4 became a positive driver of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments. Overall, the positive performance derived from the dividend factor could not offset the negative performance derived from the quality and lower beta exposure. Consequently, the Underlying Index underperformed the MSCI ACWI ex USA Index5 by -16 basis points (“bps”)6. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was
-47 bps, which is reflective of the Fund’s management fee (-47 bps), stock selection/futures (+5 bps), securities lending (+3 bps), dividend tax differential (-1 bps), performance calculation differences between the Underlying Index and the Fund (+1 bps), and compounding of tracking error over time (-8 bps).
3 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
4 |
Dividend yield factor is the percentage of an investments price that a company is projected to pay out as dividends. |
5 |
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. |
6 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAK REPORT | 39 |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Dynamic Index Fund Ticker: IQDY
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 4/12/2013 |
|||||||||||||
|
|
|||||||||||||||
FlexShares International Quality Dividend Dynamic Index Fund (Based on Net Asset Value) |
39.87 | % | 13.13 | % | 9.45 | % | 6.34 | % | ||||||||
FlexShares International Quality Dividend Dynamic Index Fund (Based on Market Price) |
40.37 | % | 13.56 | % | 9.61 | % | 6.42 | % | ||||||||
Northern Trust International Quality Dividend Dynamic IndexSM |
40.44 | % | 13.58 | % | 9.80 | % | 6.80 | % | ||||||||
MSCI ACWI ex USA Index |
29.66 | % | 12.02 | % | 9.79 | % | 6.14 | % |
All data as of 10/31/21. 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 0.48% 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 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, 2021, 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 ended October 31, 2021, prices on International market investments (including Developed and Emerging markets) generally traded higher. Through Q4 of 2020, International market investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. International investments continued to rise over the 1st half of 2021 due to strong corporate earnings
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. 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. |
40 | FLEXSHARES ANNUAL REPORT |
FlexShares® International | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Quality Dividend Dynamic Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
and positive economic data. Sectors that had previously struggled during the pandemic, including energy and financials, helped to lead investments higher. International market investments moved lower in Q3 of 2021 as investor concerns surrounding economic growth in China were driven by the collapse of a large real estate investment company and a subsequent increase in regulatory pressures on some of China’s top performing technology and financial companies. Inflation concerns stemming from supply chain bottlenecks and rising energy prices also drove International market investments lower. International market investments rebounded in October 2021 as lockdown policies enacted at the height of the pandemic were eased in many countries and latent consumer demand led to strong corporate earnings.
International investments trended upwards during the 12 months ended October 31, 2021, and we believe the quality factor3 was a negative driver of Fund performance during the fiscal year ended October 31, 2021. As international economies recovered from the global lockdown, however, International investments expanded in several areas hardest hit during the pandemic. Because of this expansion during the second half of the fiscal year, the dividend yield factor4 and the higher beta exposure were positive drivers of Fund performance as high yielding investments outperformed low yielding and non-dividend paying investments and higher beta investments generally fared better than lower beta investments. Consequently, the Underlying Index outperformed the MSCI ACWI ex USA Index5 by 10.78%. Tracking difference between the Fund’s NAV and the Underlying Index’s total return for the 12-month period was -57 basis points (“bps”)6, which is reflective of the
Fund’s management fee (-47 bps), stock selection/futures (-2 bps), securities lending (+7 bps), dividend tax differential (-1 bps), and compounding of tracking error over time (-14 bps).
3 |
The quality factor is based on a belief that there are a set of clearly defined fundamental criteria that seek to identify companies with outstanding financial characteristics. |
4 |
Dividend yield factor is the percentage of an investments price that a company is projected to pay out as dividends. |
5 |
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. |
6 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
FLEXSHARES ANNUAL REPORT | 41 |
FlexShares® iBoxx® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
3-Year Target Duration TIPS Index Fund Ticker: TDTT
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 9/19/2011 |
|||||||||||||
|
|
|||||||||||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (Based on Net Asset Value) |
6.91 | %* | 6.01 | % | 3.56 | % | 1.97 | % | ||||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (Based on Market Price) |
6.95 | % | 6.05 | % | 3.58 | % | 1.98 | % | ||||||||
iBoxx 3-Year Target Duration TIPS Index |
7.03 | % | 6.21 | % | 3.75 | % | 2.13 | % |
All data as of 10/31/21. 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 0.19% 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, commonly known as “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, 2021, 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 first half of the fiscal year ended October 31, 2021, fixed income investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Quarterly Gross Domestic Product (GDP) as reported by the U.S. Bureau of Economic Analysis rebounded to 4.5% in the fourth quarter of 2020 followed by 6.3% and 6.7% in the first and second quarters of 2021. Emergence of the Delta variant of the COVID virus led to the reimposition of restrictions resulting in a slowdown of GDP to only 2.0% during the calendar third quarter.
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. |
42 | FLEXSHARES ANNUAL REPORT |
FlexShares® iBoxx® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
3-Year Target Duration TIPS Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
The U.S. yield curve2 steepened in early calendar year 2021 as prospects for economic reopening with the pending distribution of COVID vaccines and the runoff elections for two senate seats in Georgia. Investors began to consider the positive impact on markets of the potential for additional fiscal stimulus with one party in control of the House, Senate and Executive Branch.
Short-term Treasury yields remained at low levels despite the Federal Reserve (Fed) statements indicating the possibility of decreasing the purchases of Treasury and Agency Mortgage Backed Securities (MBS) and the highest consumer price inflation in thirteen years. By the summer of 2021, yields were lower as increased infections from the COVID Delta variant weighed on economic growth outlooks.
By fiscal year-end, 1-month and 3-month Treasury yields were down a couple of basis points (bps)3, 1-year Treasury yields were unchanged, while intermediate- and long-term yields were higher with 2-year yields up +34 bps, 5-year yields up +80 bps, 10-year yields up +68 bps, 30-year yields up +27 bps.
For the fiscal year ended October 31, 2021, the Consumer Price Index (CPI) ended the year meaningfully higher at a 6.2% rate which was the highest level since July 30, 2008 and up from 1.2% for the fiscal year ended October 31, 20204. Our opinion is that commodity prices in general moved higher during the summer of 2020 as economies slowly reopened and consumer demand was met by supply shortages as previous COVID shutdowns of production facilities
ultimately led to higher prices for raw materials. We believe that inflation expectations rose further in early 2021 as the Georgia Senate run-off elections drove expectations for even further fiscal stimulus potentially driving consumer demand higher. Rising wages combined with increasing energy and food prices drove annual CPI above 5% in the summer of 2021. Within the CPI measure, core inflation ex-food and energy prices were higher by 4.6%. As measured by the CPI, individual items were up substantially including energy prices 30% higher, food items up 5.3% and shelter prices showed an increase of 3.5%5.
During the fiscal year, real yields fell on lower nominal treasury yields. Short-term real yields6 fell more than long-term yields in conjunction with the Fed decision to cut the Federal funds rate. 1-year real yields fell 132 bps, while the 5-, 10-, and 30-year real yields were lower by 128 bps, 97 bps, and 77 bps, respectively7.
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. TIPS 1-10 Year Index8 by +22 bps due to lower 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 -12 bps, reflective of the Fund’s management fee (-18 bps), duration and curve positioning (+1 bps), security selection (-4 bps), trading and pricing differences (+15 bps), and other factors (-6 bps).
* |
The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $26.38 as of October 31, 2021. |
2 |
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. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
4 |
U.S. Bureau of Labor Statistics, Consumer Price Index, October 31, 2021 and October 31, 2020, respectively. |
5 |
U.S. Bureau of Labor Statistics, Consumer Price Index, June 30, 2021. |
6 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
7 |
Bloomberg, In this analysis we are making a comparison between the difference in the real yield rates of the 1-year, 5-year, 10-year and 30-year maturities using data available as of January 1, 2021 and October 31, 2021. |
8 |
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. |
FLEXSHARES ANNUAL REPORT | 43 |
FlexShares® iBoxx® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
5-Year Target Duration TIPS Index Fund Ticker: TDTF
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 9/19/2011 |
|||||||||||||
|
|
|||||||||||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (Based on Net Asset Value) |
6.85 | %* | 7.92 | % | 4.38 | % | 2.76 | % | ||||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (Based on Market Price) |
6.96 | % | 7.96 | % | 4.40 | % | 2.77 | % | ||||||||
iBoxx 5-Year Target Duration TIPS Index |
7.02 | % | 8.17 | % | 4.58 | % | 2.92 | % |
All data as of 10/31/21. 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 0.19% 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, commonly known as “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, 2021, there were 25 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 first half of the fiscal year ended October 31, 2021, fixed income investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Quarterly Gross Domestic Product (GDP) as reported by the U.S. Bureau of Economic Analysis rebounded to 4.5% in the fourth quarter of 2020 followed by 6.3% and 6.7% in the first and second quarters of 2021. Emergence of the Delta variant of the COVID virus led to the reimposition of restrictions resulting in a slowdown of GDP to only 2.0% during the calendar third quarter.
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. |
44 | FLEXSHARES ANNUAK REPORT |
FlexShares® iBoxx® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
5-Year Target Duration TIPS Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
The U.S. yield curve2 steepened in early calendar year 2021 as prospects for economic reopening with the pending distribution of COVID vaccines and the runoff elections for two senate seats in Georgia. Investors began to consider the positive impact on markets of the potential for additional fiscal stimulus with one party in control of the House, Senate and Executive Branch.
Short-term Treasury yields remained at low levels despite the Federal Reserve (Fed) statements indicating the possibility of decreasing the purchases of Treasury and Agency Mortgage Backed Securities (MBS) and the highest consumer price inflation in thirteen years. By the summer of 2021, yields were lower as increased infections from the COVID Delta variant weighed on economic growth outlooks.
By fiscal year-end, 1-month and 3-month Treasury yields were down a couple of basis points (bps)3, 1-year Treasury yields were unchanged, while intermediate- and long-term yields were higher with 2-year yields up +34 bps, 5-year yields up +80 bps, 10-year yields up +68 bps, and 30-year yields up +27 bps.
For the fiscal year ended October 31, 2021, the Consumer Price Index (CPI) ended the year meaningfully higher at a 6.2% rate which was the highest level since July 30, 2008 and up from 1.2% for the fiscal year ended October 31, 20204. Our opinion is that commodity prices in general moved higher during the summer of 2020 as economies slowly reopened and consumer demand was met by supply shortages as previous COVID shutdowns of production facilities
ultimately led to higher prices for raw materials. We believe that inflation expectations rose further in early 2021 as the Georgia Senate run-off elections drove expectations for even further fiscal stimulus potentially driving consumer demand higher. Rising wages combined with increasing energy and food prices drove annual CPI above 5% in the summer of 2021. Within the CPI measure, core inflation ex-food and energy prices were higher by 4.6%. As measured by the CPI, individual items were up substantially including energy prices 30% higher, food items up 5.3% and shelter prices showed an increase of 3.5%5.
During the fiscal year, real yields fell on lower nominal treasury yields. Short-term real yields6 fell more than long-term yields in conjunction with the Fed decision to cut the Federal funds rate. 1-year real yields fell 132 bps, while the 5-, 10-, and 30-year real yields were lower by 128 bps, 97 bps, and 77 bps, respectively7.
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 underperformed the Bloomberg U.S. TIPS 1-10 Year Index8 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 return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $28.02 as of October 31, 2021. |
2 |
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. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
4 |
U.S. Bureau of Labor Statistics, Consumer Price Index, October 31, 2021 and October 31, 2020, respectively. |
5 |
U.S. Bureau of Labor Statistics, Consumer Price Index, June 30, 2021. |
6 |
A real yield is the yield to the investor that has been adjusted to remove the effects of inflation. |
7 |
Bloomberg, In this analysis we are making a comparison between the difference in the real yield rates of the 1-year, 5-year, 10-year and 30-year maturities using data available as of January 1, 2021 and October 31, 2021. |
8 |
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. |
FLEXSHARES ANNUAL REPORT | 45 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Disciplined Duration MBS Index Fund Ticker: MBSD
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 9/3/2014 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Disciplined Duration MBS Index Fund (Based on Net Asset Value) |
-0.28 | % | 4.04 | % | 1.97 | % | 2.14 | % | ||||||||
FlexShares Disciplined Duration MBS Index Fund (Based on Market Price) |
-0.11 | % | 4.01 | % | 2.01 | % | 2.17 | % | ||||||||
ICE BofA Merrill Lynch® Constrained Duration US Mortgage Backed Securities IndexSM |
0.73 | % | 4.55 | % | 2.52 | % | 2.61 | % |
All data as of 10/31/21. 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 0.19% 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 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, the average effective duration,1 of the portfolio of MBS represented in the Underlying Index was between 3.25 and 4.25 years. As of October 31, 2021, there were 109 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 first half of the fiscal year ended October 31, 2021, fixed income investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Quarterly Gross Domestic Product (GDP) as reported by the U.S. Bureau of Economic Analysis rebounded to 4.5% in the fourth quarter of 2020 followed by 6.3% and 6.7% in the first and second quarters of 2021. Emergence of the Delta variant of the COVID virus led to the reimposition of restrictions resulting in a slowdown of GDP to only 2.0% during the calendar third quarter of 2021.
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. |
46 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Disciplined Duration MBS Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
The U.S. yield curve2 steepened in early calendar year 2021 as prospects for economic reopening with the pending distribution of COVID vaccines and the runoff elections for two senate seats in Georgia. Investors began to consider the positive impact on markets of the potential for additional fiscal stimulus with one party in control of the House, Senate and Executive Branch.
Short-term Treasury yields remained at low levels despite the Federal Reserve (Fed) statements indicating the possibility of decreasing the purchases of Treasury and Agency MBS and the highest consumer price inflation in thirteen years. By the summer of 2021, yields were lower as increased infections from the COVID Delta variant weighed on economic growth outlooks.
By fiscal year-end, 1-month and 3-month Treasury yields were down a couple of basis points (bps)3, 1-year Treasury yields were unchanged, while intermediate- and long-term yields were higher with 2-year yields up +34 bps, 5-year yields up +80 bps, 10-year yields up +68 bps, 30-year yields up +27 bps.
Prompted by lower interest rates, refinancing activity, housing sales and mortgage applications began to surge
April 2020, as average 30-year mortgage rates (Freddie Mac Index) raised slightly from 2.81% to 3.14% during the fiscal year4. Powered by robust demand and low mortgage rates, existing home sales managed a 16.3% increase5 for the twelve months following September 2020, while new housing starts increased 15.3% for the fiscal year.6
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 Index7 by +30 bps due to the Underlying Index’s exposure to a selection of higher coupon8, 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).
2 |
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. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
4 |
Source: Bloomberg. Federal Home Loan Mortgage Corp. Primary Mortgage Market Survey. October 31, 2020 through November 1, 2021. |
5 |
Source: Bloomberg. National Association of Realtors, US Existing Homes Sales, September30, 2020 through September 30, 2021. |
6 |
Source: Bloomberg. U.S. Census Bureau, Us New Privately Owned Housing Unites Starts, October 31, 2020 through October 31, 2021. |
7 |
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). |
8 |
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. |
FLEXSHARES ANNUAL REPORT | 47 |
FlexShares® Credit-Scored | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Corporate Bond Index Fund Ticker: SKOR
CUMULATIVE PERFORMANCE
Through October 31, 2021
* |
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, 2021
1 Year | 3 Year | 5 Year | Fund Inception 11/12/2014 |
|||||||||||||
|
|
|||||||||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund (Based on Net Asset Value) |
0.70 | % | 6.42 | % | 3.76 | % | 3.75 | % | ||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund (Based on Market Price) |
0.68 | % | 6.39 | % | 3.73 | % | 3.75 | % | ||||||||
Hybrid Northern Trust Credit-Scored US Corporate Bond IndexSM/Northern Trust US Corporate Bond Quality Value IndexSM* |
1.34 | % | 6.97 | % | 4.25 | % | 4.19 | % | ||||||||
Bloomberg U.S. Intermediate Corporate Bond Index |
0.71 | % | 5.80 | % | 3.65 | % | 3.62 | % |
All data as of 10/31/21. 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 0.23% 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 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 calculate optimal weights for securities in the Underlying Index based on liquidity and security issuers’ fundamental factors, as determined by Northern Trust Investments, Inc. (“NTI”), in its capacity as index provider (the “Index Provider”). As of October 31, 2021, there were 2,512 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 first half of the fiscal year ended October 31, 2021, fixed income investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Quarterly Gross Domestic Product (GDP) as reported by the U.S. Bureau of Economic Analysis rebounded to 4.5% in the fourth quarter of 2020 followed by 6.3% and 6.7% in the first and second quarters of 2021. Emergence of the Delta variant of the COVID virus led to the reimposition of restrictions resulting in a slowdown of GDP to only 2.0% during the calendar third quarter of 2021.
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. |
48 | FLEXSHARES ANNUAL REPORT |
FlexShares® Credit-Scored | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Corporate Bond Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
The U.S. yield curve2 steepened in early calendar year 2021 as prospects for economic reopening with the pending distribution of COVID vaccines and the runoff elections for two senate seats in Georgia. Investors began to consider the positive impact on markets of the potential for additional fiscal stimulus with one party in control of the House, Senate and Executive Branch.
Short-term Treasury yields remained at low levels despite the Federal Reserve (Fed) statements indicating the possibility of decreasing the purchases of Treasury and Agency Mortgage Backed Securities (MBS) and the highest consumer price inflation in thirteen years. By the summer of 2021, yields were lower as increased infections from the COVID Delta variant weighed on economic growth outlooks.
By fiscal year-end, 1-month and 3-month Treasury yields were down a couple of basis points (bps)3, 1-year Treasury yields were unchanged, while intermediate- and long-term yields were higher with 2-year yields up
+34 bps, 5-year yields up +80 bps, 10-year yields up +68 bps, 30-year yields up +27 bps.
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 through February 2021, then widened briefly in March 2021 before once again trending 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 bps in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year7.
During the fiscal year, the Fund’s NAV underperformed the Bloomberg U.S. Intermediate Corporate Bond Index8 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).
2 |
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. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
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 |
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 U.S. Intermediate Corporate Bond Index of October 31, 2020 – October 31, 2021. |
8 |
Bloomberg U.S. 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. |
FLEXSHARES ANNUAL REPORT | 49 |
FlexShares® Credit-Scored | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Long Corporate Bond Index Fund Ticker: LKOR
CUMULATIVE PERFORMANCE
Through October 31, 2021
* |
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, 2021
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) |
5.14 | % | 13.35 | % | 7.36 | % | 8.02 | % | ||||||||
FlexShares Credit-Scored US Long Corp Bond Index Fund (Based on Market Price) |
5.23 | % | 13.45 | % | 7.00 | % | 8.00 | % | ||||||||
Hybrid Northern Trust Credit-Scored US Long Corporate Bond IndexSM/Northern Trust US Long Corporate Bond Quality Value IndexSM* |
5.86 | % | 14.28 | % | 8.14 | % | 8.73 | % | ||||||||
Bloomberg Long U.S. Corporate Bond Index |
4.55 | % | 12.49 | % | 7.07 | % | 7.89 | % |
All data as of 10/31/21. 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 0.23% 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 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 calculate optimal weights for securities in the Underlying Index based on liquidity and security issuers’ fundamental factors, as determined by Northern Trust Investments, Inc. (“NTI”), in its capacity as index provider (the “Index Provider”). As of October 31, 2021, there were 1,342 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 first half of the fiscal year ended October 31, 2021, fixed income investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Quarterly Gross Domestic Product (GDP) as reported by the U.S. Bureau of Economic Analysis rebounded to 4.5% in the fourth quarter of 2020 followed by 6.3% and 6.7% in the first and second quarters of 2021. Emergence of the Delta variant of the COVID virus led to the reimposition of restrictions resulting in a slowdown of GDP to only 2.0% during the calendar third quarter of 2021.
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. |
50 | FLEXSHARES ANNUAL REPORT |
FlexShares® Credit-Scored | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
US Long Corporate Bond Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
The U.S. yield curve2 steepened in early calendar year 2021 as prospects for economic reopening with the pending distribution of COVID vaccines and the runoff elections for two senate seats in Georgia. Investors began to consider the positive impact on markets of the potential for additional fiscal stimulus with one party in control of the House, Senate and Executive Branch.
Short-term Treasury yields remained at low levels despite the Federal Reserve (Fed) statements indicating the possibility of decreasing the purchases of Treasury and Agency Mortgage Backed Securities (MBS) and the highest consumer price inflation in thirteen years. By the summer of 2021, yields were lower as increased infections from the COVID Delta variant weighed on economic growth outlooks.
By fiscal year-end, 1-month and 3-month Treasury yields were down a couple of basis points (bps)3, 1-year Treasury yields were unchanged, while intermediate- and long-term yields were higher with 2-year yields up +34 bps, 5-year yields up +80 bps, 10-year yields up +68 bps, 30-year yields up +27 bps.
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. Long-term4 credit spreads5 trended lower through February 2021, then widened briefly in March 2021 before once again trending 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 bps in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year7.
During the fiscal year, the Fund’s NAV underperformed the Bloomberg Long U.S. Corporate Bond Index8 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).
2 |
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. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
4 |
Long-term bonds typically mature beyond 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 |
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 U.S. Intermediate Corporate Bond Index as of October 31, 2020 – October 31, 2021. |
8 |
Bloomberg Long U.S. 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. |
FLEXSHARES ANNUAL REPORT | 51 |
FlexShares® High Yield | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Value-Scored Bond Index Fund Ticker: HYGV
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | Fund Inception 7/17/2018 |
||||||||||
|
|
|||||||||||
FlexShares High Yield Value-Scored US Bond Index Fund (Based on Net Asset Value) |
13.38 | % | 7.88 | % | 7.22 | % | ||||||
FlexShares High Yield Value-Scored US Bond Index Fund (Based on Market Price) |
13.20 | % | 7.91 | % | 7.23 | % | ||||||
Northern Trust High Yield Value-Scored US Corporate Bond IndexSM |
14.14 | % | 9.33 | % | 8.59 | % | ||||||
ICE BofA Merrill Lynch® US High Yield Index |
10.74 | % | 7.15 | % | 6.56 | % |
All data as of 10/31/21. 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 0.38% 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 score, as determined by Northern Trust Investments, Inc. (“NTI”), acting in its capacity as index provider (“Index Provider”). As of October 31, 2021, there were 970 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 first half of the fiscal year ended October 31, 2021, fixed income investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Quarterly Gross Domestic Product (GDP) as reported by the U.S. Bureau of Economic Analysis rebounded to 4.5% in the fourth quarter of 2020 followed by 6.3% and 6.7% in the first and second quarters of 2021. Emergence of the Delta variant of the COVID virus led to the
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. |
52 | FLEXSHARES ANNUAK REPORT |
FlexShares® High Yield | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Value-Scored Bond Index Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
reimposition of restrictions resulting in a slowdown of GDP to only 2.0% during the calendar third quarter of 2021.
The U.S. yield curve2 steepened in early calendar year 2021 as prospects for economic reopening with the pending distribution of COVID vaccines and the runoff elections for two senate seats in Georgia. Investors began to consider the positive impact on markets of the potential for additional fiscal stimulus with one party in control of the House, Senate and Executive Branch.
Short-term Treasury yields remained at low levels despite the Federal Reserve (Fed) statements indicating the possibility of decreasing the purchases of Treasury and Agency Mortgage Backed Securities (MBS) and the highest consumer price inflation in thirteen years. By the summer of 2021, yields were lower as increased infections from the COVID Delta variant weighed on economic growth outlooks.
By fiscal year-end, 1-month and 3-month Treasury yields were down a couple of basis points (bps)3, 1-year Treasury yields were unchanged, while intermediate- and long-term yields were higher with 2-year yields up +34 bps, 5-year yields up +80 bps, 10-year yields up +68 bps, 30-year yields up +27 bps.
High Yield4 credit spreads5 from the beginning of the fiscal year with a temporary retreat wider in during July and August when reinstitution of some economic shutdowns due to the COVID Delta variant raised investors’ uncertainty for corporate revenues and earnings. High Yield option adjusted spreads (“OAS”)6 of
the ICE BofA US High Yield Index7 declined from 532 bps to 302 bps in early July 2021, then widened to 321 bps at the end of August 2021 and ended the fiscal year at 315 bps8. 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 2020 to 2.6% as of October 2021. 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 2021 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 20139.
For the 2021 fiscal year, the Fund’s NAV outperformed the ICE BofA Merrill Lynch US High Yield Index by +264 bps. Performance was driven primarily by security selection and sector allocations as the Fund’s quantitative strategy of identifying better value securities resulted in overweights to and better security selection in lower quality credits which, on average, outperformed higher quality credits during the fiscal year. The tracking difference between the Fund’s NAV and the Underlying Index’s total return for the period was -76 bps, which is reflective of the Fund’s management fee (-37 bps), trading costs and fees (-37 bps), pricing differences (-10 bps), yield curve positioning (-1 bps), sector allocation (-7 bps), security selection (+18 bps) and other factors (-2 bp).
2 |
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. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
4 |
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. |
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 |
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. |
8 |
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, 2020 – October 31, 2021. |
9 |
Source: JP Morgan, 2022 High Yield Bond and Leverage Loan Supply Outlook, November 12, 2021. |
FLEXSHARES ANNUAL REPORT | 53 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Ready Access Variable Income Fund Ticker: RAVI
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | 5 Year | Fund Inception 10/9/2012 |
|||||||||||||
|
|
|||||||||||||||
FlexShares
Ready Access Variable Income Fund |
0.34 | % | 1.90 | % | 1.74 | % | 1.32 | % | ||||||||
FlexShares
Ready Access Variable Income Fund |
0.35 | % | 1.89 | % | 1.73 | % | 1.32 | % | ||||||||
Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index |
0.05 | % | 1.05 | % | 1.09 | % | 0.64 | % |
All data as of 10/31/21. 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 0.26% 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 attempts 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 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 first half of the fiscal year ended October 31, 2021, fixed income investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Quarterly Gross Domestic Product (GDP) as reported by the U.S. Bureau of Economic Analysis rebounded to 4.5% in the fourth quarter of 2020 followed by 6.3% and 6.7% in the first and second quarters of 2021. Emergence of the Delta variant of the COVID virus led to the reimposition of restrictions resulting in a slowdown of GDP to only 2.0% during the calendar third quarter of 2021.
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. |
54 | FLEXSHARES ANNUAK REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Ready Access Variable Income Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
The U.S. yield curve2 steepened in early calendar year 2021 as prospects for economic reopening with the pending distribution of COVID vaccines and the runoff elections for two senate seats in Georgia. Investors began to consider the positive impact on markets of the potential for additional fiscal stimulus with one party in control of the House, Senate and Executive Branch.
Short-term Treasury yields remained at low levels despite the Federal Reserve (Fed) statements indicating the possibility of decreasing the purchases of Treasury and Agency Mortgage Backed Securities (MBS) and the highest consumer price inflation in thirteen years. By the summer of 2021, yields were lower as increased infections from the COVID Delta variant weighed on economic growth outlooks.
By fiscal year-end, 1-month and 3-month Treasury yields were down a couple of basis points (bps)3, 1-year Treasury yields were unchanged, while intermediate- and long-term yields were higher with 2-year yields up +34 bps, 5-year yields up +80 bps, 10-year yields up +68 bps, 30-year yields up +27 bps.4
Short-term credit option adjusted spreads (“OAS”)5 were lower for the fiscal year. OAS for the Bloomberg U.S. Treasury Floating Rate Bond Index6 fell -14 bps and the OAS on the Bloomberg 0-3 Year Corporate Index7 was -6 bps lower. Treasury Bill (T-Bill) yields remained near zero for the fiscal year as 1-month and 3-month T-Bills averaged yields of only 0.04%, while 6-month T-Bills averaged yields of 0.05% for the fiscal year8. Our contention is that investor demand for yield likely drove the tightening of corporate credit OAS as investors sought higher yields for current income.
For the 2021 fiscal year, the Fund’s NAV outperformed its market benchmark, the Bloomberg 1-3 Month U.S. Treasury Bill Index, by +29 bps. With short-term Treasury yields remaining historically low, the Fund’s portfolio was weighted towards corporate and asset-backed securities versus Treasuries. Higher average yield from lengthening the fund’s overall duration, the above-mentioned sector allocations and overall security selection drove outperformance. The Fund’s average effective duration, however, detracted from performance due to the increasing of the Treasury yield curve.
2 |
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. |
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
4 |
Bloomberg, In this analysis we are making a comparison between the difference in the yield rates of the 1-month, 3-month, 1-year, 2-year, 5-year, 10-year and 30-year maturities using data available as of October 31, 2020 and October 31, 2021. |
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 |
The Bloomberg U.S. Treasury Floating Rate Bond Index (BUSYFL) is a rules-based, market value-weighted index engineered to measure the performance of floating rate U.S. Treasury bonds. |
7 |
The Bloomberg Barclays U.S. 0-3 Year Corporate Bond Index contains fixed-rate, investment-grade US Dollar-denominated bonds from industrial, utility and financial issuers only that have a maturity of less than three years. |
8 |
Source: Bloomberg, In this analysis we are making a comparison between the difference in the OAS of the Bloomberg U.S. Treasury Floating Rate Bond Index, Bloomberg 0-3 Year Corporate Index, 1-month T-bills, 3-month T-bills maturities using data available as of October 31, 2020 and October 31, 2021. |
FLEXSHARES ANNUAL REPORT | 55 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Core Select Bond Fund Ticker: BNDC
CUMULATIVE PERFORMANCE
Through October 31, 2021
AVERAGE ANNUAL TOTAL RETURN
For the period ended October 31, 2021
1 Year | 3 Year | Fund Inception 11/18/2016 |
||||||||||
|
|
|||||||||||
FlexShares Core Select Bond Fund (Based on Net Asset Value) |
0.26 | % | 6.01 | % | 3.61 | % | ||||||
FlexShares Core Select Bond Fund (Based on Market Price) |
0.30 | % | 5.99 | % | 3.63 | % | ||||||
Bloomberg U.S. Aggregate Bond Index |
-0.48 | % | 5.63 | % | 3.62 | % |
All data as of 10/31/21. 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 0.58% 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 that is designed to achieve optimal potential for total return after considering various sources of investment risk. The Fund 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 curve2 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 first half of the fiscal year ended October 31, 2021, fixed income investments moved higher as news about the COVID-19 (“COVID”) vaccine advancements were viewed by investors as a catalyst for a potential economic recovery. Quarterly Gross Domestic Product (GDP) as reported by the U.S. Bureau of Economic Analysis rebounded
2 |
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. |
56 | FLEXSHARES ANNUAL REPORT |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Core Select Bond Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
to 4.5% in the fourth quarter of 2020 followed by 6.3% and 6.7% in the first and second quarters of 2021. Emergence of the Delta variant of the COVID virus led to the reimposition of restrictions resulting in a slowdown of GDP to only 2.0% during the calendar third quarter of 2021.
The U.S. yield curve steepened in early calendar year 2021 as prospects for economic reopening with the pending distribution of COVID vaccines and the runoff elections for two senate seats in Georgia. Investors began to consider the positive impact on markets of the potential for additional fiscal stimulus with one party in control of the House, Senate and Executive Branch.
Short-term Treasury yields remained at low levels despite the Federal Reserve (Fed) statements indicating the possibility of decreasing the purchases of Treasury and Agency Mortgage Backed Securities (MBS) and the highest consumer price inflation in thirteen years. By the summer of 2021, yields were lower as increased infections from the COVID Delta variant weighed on economic growth outlooks.
By fiscal year-end, 1-month and 3-month Treasury yields were down a couple of basis points (bps)3, 1-year Treasury yields were unchanged, while intermediate- and long-term yields were higher with 2-year yields up +34 bps, 5-year yields up +80 bps, 10-year yields up +68 bps, 30-year yields up +27 bps.4
Prompted by lower interest rates, refinancing activity, housing sales and mortgage applications began to surge April 2020, as average 30-year mortgage rates (Freddie Mac Index) raised slightly from 2.81% to 3.14% during the fiscal year5. Powered by robust demand and low mortgage rates, existing home sales managed a 16.3% increase for the twelve months following September
20206, while new housing starts increased 15.3% for the fiscal year7.
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-term8 credit spreads trended lower through February 2021, then widened briefly in March 2021 before once again trending lower into the fiscal year. Further robust economic recovery and consumer/business spending helped drive average Intermediate-term option adjusted spreads (“OAS”)9 to 63 bps in comparison to comparable maturing Treasury securities by fiscal year from 94 bps at the beginning of the fiscal year.10
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, a slight overweight to mortgage backed securities (MBS) and an overweight to corporate fixed income on our expectations for positive economic growth and corporate earnings during the ongoing COVID reopening which was being fueled by fiscal and monetary support and the potential positive impacts of soon to be available COVID vaccines. During the first quarter of the fiscal year, the slight overweight to MBS was reduced to a slight underweight due to what we believed was the investment risk related to increased prepayments and interest rate volatility and we invested in U.S. Treasuries. Over the balance of the fiscal year, due to interest rate volatility and the on-going economic recovery as COVID vaccines boosted consumer and business spending, the overweight to corporate securities was steadily increased and we decreased exposures to both MBS and Treasuries. Duration11 positioning was generally slightly longer versus the Bloomberg U.S. Aggregate Bond
3 |
A unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. |
4 |
Bloomberg, In this analysis we are making a comparison between the difference in the yield rates of the 1-month, 3-month, 1-year, 2-year, 5-year, 10-year and 30-year maturities using data available as of October 31, 2020 and October 31, 2021. |
5 |
Source: Bloomberg. Federal Home Loan Mortgage Corp. Primary Mortgage Market Survey. October 31, 2020 through November 1, 2021. |
6 |
Source: Bloomberg. National Association of Realtors, US Existing Homes Sales, September 30, 2020 through September 30, 2021. |
7 |
Source: Bloomberg. U.S. Census Bureau, US New Privately Owned Housing Units Started, October 31, 2020 through October 31, 2021. |
8 |
Intermediate-term bonds typically mature between 3 – 10 years. |
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 |
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 U.S. Intermediate Corporate Bond Index as of October 31, 2020 – October 31, 2021. |
11 |
Duration is how sensitive a fixed income investment is to a change in interest rates and is expressed as a number of years – the higher the number the more volatile would be the expected change. |
FLEXSHARES ANNUAL REPORT | 57 |
FlexShares® | MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
Core Select Bond Fund (cont.)
PORTFOLIO ANALYSIS (cont.)
Index12 during the fiscal year, providing a positive contribution to overall Fund performance. The difference in the credit spread between various U.S. investment grade-corporate credit narrowed substantially during the fiscal year which also contributed to the Fund’s positive relative performance. The steepening of the Treasury yield curve had a negative impact on the Fund’s returns.
For the 2021 fiscal year, the Fund’s NAV outperformed its market benchmark, the Bloomberg U.S. Aggregate Bond Index, by +74 bps. While the slightly longer overall duration of the fund detracted from performance due to steepening of the Treasury yield curve, portfolio manager security selection and an overweight to long-term corporate credits along with an underweight to MBS and Treasuries all contributed to excess returns versus the Fund’s market benchmark.
12 |
The Bloomberg Barclays Aggregate Bond Index broadly tracks the U.S. investment-grade bond market. |
58 | FLEXSHARES ANNUAL REPORT |
FlexShares® Trust
Statements of Assets and Liabilities October 31, 2021
FlexShares® US Quality Low Volatility Index Fund |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund |
FlexShares® Emerging Markets Quality Low Volatility Index Fund |
FlexShares® Morningstar US Market Factor Tilt Index Fund |
|||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost |
$ | 129,983,210 | $ | 67,222,791 | $ | 14,649,196 | $ | 931,783,626 | ||||||||
Affiliate securities, at cost |
— | — | — | 556,713 | ||||||||||||
Securities Lending Reinvestments, at cost |
— | — | — | 156,227,116 | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
160,818,791 | 74,810,927 | 15,685,907 | 1,713,847,642 | ||||||||||||
Affiliate securities, at value |
— | — | — | 902,375 | ||||||||||||
Securities Lending Reinvestments, at value |
— | — | — | 156,227,160 | ||||||||||||
Cash |
193,668 | 93,526 | 14,790 | 11,148,150 | ||||||||||||
Cash segregated at broker* |
— | 57,385 | 27,161 | 333,884 | ||||||||||||
Foreign cash†† |
— | 73,520 | 154,891 | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
— | 14,802 | 2 | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
97,556 | 359,374 | 8,994 | 834,924 | ||||||||||||
Securities lending income |
— | 467 | — | 24,254 | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
15 | 19 | 4,008 | 699 | ||||||||||||
Securities sold |
— | 62,698 | 1,609 | — | ||||||||||||
Variation margin on futures contracts |
8,541 | 4,500 | — | 447,358 | ||||||||||||
|
|
|||||||||||||||
Total Assets |
161,118,571 | 75,477,218 | 15,897,362 | 1,883,766,446 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft |
— | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts |
— | 9,585 | — | — | ||||||||||||
Due to brokers |
8,058 | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
— | — | — | 156,227,373 | ||||||||||||
Deferred compensation (Note 7) |
5,307 | 3,155 | 548 | 146,844 | ||||||||||||
Investment advisory fees (Note 4) |
28,469 | 21,359 | 5,377 | 357,576 | ||||||||||||
Trustee fees (Note 7) |
845 | 464 | 88 | 9,427 | ||||||||||||
Securities purchased |
— | — | — | — | ||||||||||||
Deferred non-US capital gains taxes |
— | — | 45,878 | — | ||||||||||||
Due to Authorized Participant |
— | 62,698 | — | — | ||||||||||||
Variation margin on futures contracts |
— | — | 1,780 | — | ||||||||||||
Capital shares redeemed |
— | — | — | 1,708 | ||||||||||||
Other |
1,400 | 9,000 | — | 4,500 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
44,079 | 106,261 | 53,671 | 156,747,428 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 161,074,492 | $ | 75,370,957 | $ | 15,843,691 | $ | 1,727,019,018 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 130,969,714 | $ | 67,935,051 | $ | 15,170,847 | $ | 958,017,061 | ||||||||
Distributable earnings (loss) |
30,104,778 | 7,435,906 | 672,844 | 769,001,957 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 161,074,492 | $ | 75,370,957 | $ | 15,843,691 | $ | 1,727,019,018 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
2,950,001 | 2,700,001 | 600,001 | 9,650,001 | ||||||||||||
Net Asset Value |
$ | 54.60 | $ | 27.92 | $ | 26.41 | $ | 178.97 | ||||||||
† Securities on loan, at value |
$ | — | $ | — | $ | — | $ | 202,123,212 | ||||||||
†† Cost of foreign cash |
$ | — | $ | 73,033 | $ | 156,154 | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31. |
** |
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 | 59 |
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 |
$ | 501,167,692 | $ | 273,639,114 | $ | 111,180,900 | $ | 149,948,638 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
13,300,695 | 2,781,579 | 109,616 | — | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
635,693,157 | 332,495,145 | 142,459,103 | 190,347,988 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
13,300,695 | 2,781,579 | 109,616 | — | ||||||||||||
Cash |
3,780,766 | 855,389 | 1,706,610 | 954,991 | ||||||||||||
Cash segregated at broker* |
1,404,389 | 198,374 | 196,726 | 156,710 | ||||||||||||
Foreign cash†† |
3,447,840 | 1,540,099 | — | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
59,353 | 12,559 | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
4,184,780 | 390,387 | 112,370 | 202,607 | ||||||||||||
Securities lending income |
35,297 | 15,388 | 558 | 98 | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
— | 36 | — | 82 | ||||||||||||
Securities sold |
456,534 | 112,851 | — | — | ||||||||||||
Variation margin on futures contracts |
104,221 | — | 46,837 | 39,500 | ||||||||||||
|
|
|||||||||||||||
Total Assets |
662,467,032 | 338,401,807 | 144,631,820 | 191,701,976 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft |
— | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts |
182,098 | 3,323 | — | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
13,300,695 | 2,781,579 | 109,616 | — | ||||||||||||
Deferred compensation (Note 7) |
86,420 | 43,252 | 5,466 | 6,573 | ||||||||||||
Investment advisory fees (Note 4) |
220,932 | 168,076 | 38,281 | 50,258 | ||||||||||||
Trustee fees (Note 7) |
3,689 | 1,851 | 708 | 1,000 | ||||||||||||
Securities purchased |
— | 192 | — | — | ||||||||||||
Deferred non-US capital gains taxes |
— | 929,952 | — | — | ||||||||||||
Due to Authorized Participant |
7,705 | — | — | — | ||||||||||||
Variation margin on futures contracts |
— | 51,587 | — | — | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
27,000 | 50,000 | 2,500 | 1,400 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
13,828,539 | 4,029,812 | 156,571 | 59,231 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 648,638,493 | $ | 334,371,995 | $ | 144,475,249 | $ | 191,642,745 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 623,021,119 | $ | 330,576,703 | $ | 115,286,841 | $ | 153,299,069 | ||||||||
Distributable earnings (loss) |
25,617,374 | 3,795,292 | 29,188,408 | 38,343,676 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 648,638,493 | $ | 334,371,995 | $ | 144,475,249 | $ | 191,642,745 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
8,800,001 | 5,500,001 | 2,875,001 | 1,700,001 | ||||||||||||
Net Asset Value |
$ | 73.71 | $ | 60.79 | $ | 50.25 | $ | 112.73 | ||||||||
† Securities on loan, at value |
$ | 66,431,697 | $ | 11,156,681 | $ | 3,078,424 | $ | 1,207,643 | ||||||||
†† Cost of foreign cash |
$ | 3,429,679 | $ | 1,547,215 | $ | — | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
60 | 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® Morningstar Global Upstream Natural Resources Index Fund |
|||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost |
$ | 130,424,244 | $ | 2,481,514 | $ | 5,003,305 | $ | 4,901,271,932 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
1,234,053 | — | — | 60,798,497 | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
181,693,556 | 2,647,456 | 5,108,626 | 6,019,017,379 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
1,234,053 | — | — | 60,798,546 | ||||||||||||
Cash |
987,683 | 20,094 | 3,644 | 26,387,049 | ||||||||||||
Cash segregated at broker* |
381,475 | — | — | 3,059,528 | ||||||||||||
Foreign cash†† |
2,309,088 | — | 7,799 | 5,517,883 | ||||||||||||
Restricted cash** |
— | — | — | 474,734 | ||||||||||||
Due from Authorized Participant |
— | — | — | 27,303,600 | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
27,020 | — | 510 | 1,209,027 | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
318,302 | 1,873 | 11,322 | 4,115,273 | ||||||||||||
Securities lending income |
1,127 | — | — | 35,362 | ||||||||||||
Capital shares issued |
— | — | — | 19,332,095 | ||||||||||||
Investment adviser |
— | 2 | 4 | — | ||||||||||||
Securities sold |
46,567 | — | 4,794 | — | ||||||||||||
Variation margin on futures contracts |
55,187 | 1,240 | — | 768,666 | ||||||||||||
|
|
|||||||||||||||
Total Assets |
187,054,058 | 2,670,665 | 5,136,699 | 6,168,019,142 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft |
— | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts |
16,181 | — | 1,857 | 814,670 | ||||||||||||
Due to brokers |
— | 978 | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
1,234,053 | — | — | 60,798,887 | ||||||||||||
Deferred compensation (Note 7) |
7,999 | — | — | 512,673 | ||||||||||||
Investment advisory fees (Note 4) |
64,364 | 196 | 513 | 2,360,112 | ||||||||||||
Trustee fees (Note 7) |
987 | 5 | 10 | 30,794 | ||||||||||||
Securities purchased |
— | — | 15,259 | 49,738,533 | ||||||||||||
Deferred non-US capital gains taxes |
— | — | — | 537,973 | ||||||||||||
Due to Authorized Participant |
— | — | — | 474,734 | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
13,000 | — | — | 40,500 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
1,336,584 | 1,179 | 17,639 | 115,308,876 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 185,717,474 | $ | 2,669,486 | $ | 5,119,060 | $ | 6,052,710,266 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital |
$ | 135,740,847 | $ | 2,500,000 | $ | 5,000,171 | $ | 6,011,428,653 | ||||||||
Distributable earnings (loss) |
49,976,627 | 169,486 | 118,889 | 41,281,613 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 185,717,474 | $ | 2,669,486 | $ | 5,119,060 | $ | 6,052,710,266 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
1,250,001 | 50,000 | 100,000 | 156,550,001 | ||||||||||||
Net Asset Value |
$ | 148.57 | $ | 53.39 | $ | 51.19 | $ | 38.66 | ||||||||
† Securities on loan, at value |
$ | 6,129,923 | $ | — | $ | — | $ | 303,788,929 | ||||||||
†† Cost of foreign cash |
$ | 2,318,405 | $ | — | $ | 7,774 | $ | 5,450,348 |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31. |
** |
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 | 61 |
Statements of Assets and Liabilities (cont.)
FlexShares® STOXX® Global Broad Infrastructure Index Fund |
FlexShares® Global Quality Real Estate Index Fund |
FlexShares® Real Assets Allocation Index Fund |
FlexShares® Quality Dividend Index Fund |
|||||||||||||
ASSETS |
||||||||||||||||
Securities, at cost |
$ | 2,273,516,071 | $ | 341,555,980 | $ | — | $ | 1,244,426,037 | ||||||||
Affiliate securities, at cost |
— | — | 29,129,334 | — | ||||||||||||
Securities Lending Reinvestments, at cost |
32,219,867 | 11,192,491 | — | 93,371,909 | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
2,621,193,595 | 414,269,818 | — | 1,632,826,679 | ||||||||||||
Affiliate securities, at value |
— | — | 30,290,663 | — | ||||||||||||
Securities Lending Reinvestments, at value |
32,219,867 | 11,192,491 | — | 93,371,945 | ||||||||||||
Cash |
10,504,965 | 2,711,966 | 11,264 | 7,342,515 | ||||||||||||
Cash segregated at broker* |
1,784,432 | 522,784 | — | 371,176 | ||||||||||||
Foreign cash†† |
7,322,870 | 1,672,479 | — | — | ||||||||||||
Restricted cash** |
— | 154,896 | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
265,525 | 8,285 | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
5,657,562 | 565,367 | — | 2,348,886 | ||||||||||||
Securities lending income |
19,179 | 6,385 | — | 9,864 | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
— | — | 8 | — | ||||||||||||
Securities sold |
— | 5,411,213 | 5,105,345 | — | ||||||||||||
Variation margin on futures contracts |
429,765 | 122,323 | — | 329,859 | ||||||||||||
|
|
|||||||||||||||
Total Assets |
2,679,397,760 | 436,638,007 | 35,407,280 | 1,736,600,924 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
||||||||||||||||
Cash overdraft |
— | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts |
516,358 | 14,213 | — | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
32,219,867 | 11,192,491 | — | 93,372,067 | ||||||||||||
Deferred compensation (Note 7) |
147,528 | 27,848 | 716 | 164,421 | ||||||||||||
Investment advisory fees (Note 4) |
1,057,867 | 155,405 | 3,532 | 505,944 | ||||||||||||
Trustee fees (Note 7) |
14,936 | 2,156 | 132 | 9,012 | ||||||||||||
Securities purchased |
199 | 6,487,615 | 5,103,214 | — | ||||||||||||
Deferred non-US capital gains taxes |
1,506,939 | — | — | — | ||||||||||||
Due to Authorized Participant |
— | 154,896 | — | — | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
28,000 | 6,000 | — | 4,600 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
35,491,694 | 18,040,624 | 5,107,594 | 94,056,044 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 2,643,906,066 | $ | 418,597,383 | $ | 30,299,686 | $ | 1,642,544,880 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 2,418,455,815 | $ | 369,238,075 | $ | 29,319,351 | $ | 1,256,408,503 | ||||||||
Distributable earnings (loss) |
225,450,251 | 49,359,308 | 980,335 | 386,136,377 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 2,643,906,066 | $ | 418,597,383 | $ | 30,299,686 | $ | 1,642,544,880 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
45,800,001 | 5,950,001 | 900,001 | 28,150,001 | ||||||||||||
Net Asset Value |
$ | 57.73 | $ | 70.35 | $ | 33.67 | $ | 58.35 | ||||||||
† Securities on loan, at value |
$ | 170,013,630 | $ | 35,762,241 | $ | — | $ | 130,499,879 | ||||||||
†† Cost of foreign cash |
$ | 7,278,947 | $ | 1,667,366 | $ | — | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
62 | FLEXSHARES ANNUAL REPORT |
Statements of Assets and Liabilities (cont.)
FlexShares® Quality Dividend Defensive Index Fund |
FlexShares® Quality Dividend Dynamic Index Fund |
FlexShares® International Quality Dividend Index Fund |
FlexShares® International Quality Dividend Defensive Index Fund |
|||||||||||||
ASSETS |
||||||||||||||||
Securities, at cost |
$ | 348,365,863 | $ | 16,426,689 | $ | 536,863,658 | $ | 62,598,237 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
23,597,323 | 275,181 | 17,256,554 | 1,625,153 | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
445,185,932 | 21,704,940 | 598,831,553 | 70,227,191 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
23,597,323 | 275,181 | 17,256,554 | 1,625,153 | ||||||||||||
Cash |
2,093,272 | 139,128 | 7,623,826 | — | ||||||||||||
Cash segregated at broker* |
263,859 | 33,413 | 1,559,620 | 118,993 | ||||||||||||
Foreign cash†† |
— | — | 5,384,173 | 1,165,489 | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
— | — | 161,905 | 18,838 | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
597,527 | 31,686 | 3,035,015 | 363,423 | ||||||||||||
Securities lending income |
1,732 | 114 | 14,143 | 4,583 | ||||||||||||
Capital shares issued |
— | — | — | — | ||||||||||||
Investment adviser |
— | — | — | — | ||||||||||||
Securities sold |
13,619 | 494 | — | 1,739 | ||||||||||||
Variation margin on futures contracts |
99,046 | 9,470 | 10,222 | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
471,852,310 | 22,194,426 | 633,877,011 | 73,525,409 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
||||||||||||||||
Cash overdraft |
— | — | — | 343,136 | ||||||||||||
Unrealized depreciation on forward foreign currency contracts |
— | — | 259,228 | 5,317 | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
23,597,323 | 275,181 | 17,256,554 | 1,625,153 | ||||||||||||
Deferred compensation (Note 7) |
39,488 | 5,915 | 68,793 | 9,222 | ||||||||||||
Investment advisory fees (Note 4) |
138,435 | 6,760 | 243,849 | 28,490 | ||||||||||||
Trustee fees (Note 7) |
2,609 | 116 | 3,424 | 411 | ||||||||||||
Securities purchased |
— | — | — | — | ||||||||||||
Deferred non-US capital gains taxes |
— | — | 29,760 | 38,404 | ||||||||||||
Due to Authorized Participant |
13,619 | — | — | — | ||||||||||||
Variation margin on futures contracts |
— | — | — | 16,685 | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
2,850 | 1,450 | 8,500 | — | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
23,794,324 | 289,422 | 17,870,108 | 2,066,818 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 448,057,986 | $ | 21,905,004 | $ | 616,006,903 | $ | 71,458,591 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 369,065,744 | $ | 16,666,681 | $ | 696,788,350 | $ | 86,812,818 | ||||||||
Distributable earnings (loss) |
78,992,242 | 5,238,323 | (80,781,447 | ) | (15,354,227 | ) | ||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 448,057,986 | $ | 21,905,004 | $ | 616,006,903 | $ | 71,458,591 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
8,000,001 | 350,001 | 23,900,001 | 3,000,001 | ||||||||||||
Net Asset Value |
$ | 56.01 | $ | 62.59 | $ | 25.77 | $ | 23.82 | ||||||||
† Securities on loan, at value |
$ | 26,242,817 | $ | 1,303,514 | $ | 49,192,786 | $ | 4,373,582 | ||||||||
†† Cost of foreign cash |
$ | — | $ | — | $ | 5,436,548 | $ | 1,166,444 |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31. |
** |
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 | 63 |
Statements of Assets and Liabilities (cont.)
FlexShares® International Quality Dividend Dynamic Index Fund |
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund |
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund |
FlexShares® Disciplined Duration MBS Index Fund |
|||||||||||||
ASSETS |
||||||||||||||||
Securities, at cost |
$ | 69,384,303 | $ | 1,382,590,520 | $ | 673,518,839 | $ | 108,150,831 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
1,136,015 | 3,852,300 | 2,318,500 | — | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
74,373,093 | 1,435,507,055 | 713,145,586 | 108,374,947 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
1,136,015 | 3,852,300 | 2,318,500 | — | ||||||||||||
Cash |
768,294 | 614,235 | 210,451 | 23,089,126 | ||||||||||||
Cash segregated at broker* |
139,565 | — | — | — | ||||||||||||
Foreign cash†† |
502,772 | — | — | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
12,173 | — | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
295,667 | 1,941,648 | 1,114,596 | 242,976 | ||||||||||||
Securities lending income |
3,069 | 3,975 | 4,760 | — | ||||||||||||
Capital shares issued |
— | 9,229,507 | 2,801,018 | 1,171,289 | ||||||||||||
Investment adviser |
15 | — | 46,177 | 20 | ||||||||||||
Securities sold |
— | — | 147,776 | 1,308,594 | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
77,230,663 | 1,451,148,720 | 719,788,864 | 134,186,952 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
||||||||||||||||
Cash overdraft |
— | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts |
8,111 | — | — | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
1,136,015 | 3,852,300 | 2,318,500 | — | ||||||||||||
Deferred compensation (Note 7) |
5,322 | 245,449 | 88,075 | 6,656 | ||||||||||||
Investment advisory fees (Note 4) |
29,955 | 224,787 | 107,357 | 18,720 | ||||||||||||
Trustee fees (Note 7) |
369 | 8,075 | 3,773 | 618 | ||||||||||||
Securities purchased |
— | 9,233,690 | 2,791,850 | 22,917,770 | ||||||||||||
Deferred non-US capital gains taxes |
60,290 | — | — | — | ||||||||||||
Due to Authorized Participant |
— | — | — | — | ||||||||||||
Variation margin on futures contracts |
8,904 | — | — | — | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
7,000 | — | — | 400 | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
1,255,966 | 13,564,301 | 5,309,555 | 22,944,164 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 75,974,697 | $ | 1,437,584,419 | $ | 714,479,309 | $ | 111,242,788 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 83,958,798 | $ | 1,424,702,548 | $ | 676,790,422 | $ | 115,051,750 | ||||||||
Distributable earnings (loss) |
(7,984,101 | ) | 12,881,871 | 37,688,887 | (3,808,962 | ) | ||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 75,974,697 | $ | 1,437,584,419 | $ | 714,479,309 | $ | 111,242,788 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
2,500,001 | 54,504,000 | 25,500,001 | 4,750,001 | ||||||||||||
Net Asset Value |
$ | 30.39 | $ | 26.38 | $ | 28.02 | $ | 23.42 | ||||||||
† Securities on loan, at value |
$ | 5,094,637 | $ | 46,120,662 | $ | 117,675,275 | $ | — | ||||||||
†† Cost of foreign cash |
$ | 500,272 | $ | — | $ | — | $ | — |
* |
Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 10/31. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
64 | FLEXSHARES ANNUAL REPORT |
Statements of Assets and Liabilities (cont.)
FlexShares® Credit-Scored US Corporate Bond Index Fund |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund |
FlexShares® High Yield Value- Scored Bond Index Fund |
FlexShares® ESG & Climate High Yield Corporate Core Index Fund |
|||||||||||||
ASSETS |
||||||||||||||||
Securities, at cost |
$ | 307,178,946 | $ | 57,536,998 | $ | 567,263,956 | $ | 49,230,381 | ||||||||
Affiliate securities, at cost |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Securities, at value† |
308,335,995 | 59,393,212 | 567,330,749 | 48,820,616 | ||||||||||||
Affiliate securities, at value |
— | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value |
— | — | — | — | ||||||||||||
Cash |
7,713,570 | 695,512 | 5,781,772 | 813,016 | ||||||||||||
Cash segregated at broker* |
— | — | — | — | ||||||||||||
Foreign cash†† |
— | — | — | — | ||||||||||||
Restricted cash** |
— | — | — | — | ||||||||||||
Due from Authorized Participant |
— | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts |
— | — | — | — | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
2,474,276 | 546,113 | 9,326,970 | 684,320 | ||||||||||||
Securities lending income |
— | — | — | — | ||||||||||||
Capital shares issued |
— | 3,042,319 | — | — | ||||||||||||
Investment adviser |
195 | 9 | 447 | 40 | ||||||||||||
Securities sold |
12,711,009 | 2,009,742 | 46,611,650 | 947,703 | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Assets |
331,235,045 | 65,686,907 | 629,051,588 | 51,265,695 | ||||||||||||
|
|
|||||||||||||||
LIABILITIES |
||||||||||||||||
Cash overdraft |
— | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts |
— | — | — | — | ||||||||||||
Due to brokers |
— | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Cash collateral received from securities loaned |
— | — | — | — | ||||||||||||
Deferred compensation (Note 7) |
13,781 | 3,171 | 9,415 | — | ||||||||||||
Investment advisory fees (Note 4) |
58,694 | 10,713 | 172,578 | 9,725 | ||||||||||||
Trustee fees (Note 7) |
1,711 | 317 | 2,381 | 94 | ||||||||||||
Securities purchased |
15,418,380 | 4,818,129 | 53,673,014 | 1,489,241 | ||||||||||||
Deferred non-US capital gains taxes |
— | — | — | — | ||||||||||||
Due to Authorized Participant |
— | — | — | — | ||||||||||||
Variation margin on futures contracts |
— | — | — | — | ||||||||||||
Capital shares redeemed |
— | — | — | — | ||||||||||||
Other |
2,500 | — | 10,500 | — | ||||||||||||
|
|
|||||||||||||||
Total Liabilities |
15,495,066 | 4,832,330 | 53,867,888 | 1,499,060 | ||||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 315,739,979 | $ | 60,854,577 | $ | 575,183,700 | $ | 49,766,635 | ||||||||
|
|
|||||||||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 311,857,929 | $ | 57,927,253 | $ | 568,874,928 | $ | 49,983,980 | ||||||||
Distributable earnings (loss) |
3,882,050 | 2,927,324 | 6,308,772 | (217,345 | ) | |||||||||||
|
|
|||||||||||||||
Net Assets |
$ | 315,739,979 | $ | 60,854,577 | $ | 575,183,700 | $ | 49,766,635 | ||||||||
|
|
|||||||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
5,900,001 | 1,000,001 | 11,600,001 | 1,000,000 | ||||||||||||
Net Asset Value |
$ | 53.52 | $ | 60.85 | $ | 49.58 | $ | 49.77 | ||||||||
† 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. |
** |
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 | 65 |
Statements of Assets and Liabilities (cont.)
FlexShares® ESG & Climate Investment Grade Corporate Core Index Fund |
FlexShares® Ready Access Variable Income Fund |
FlexShares® Core Select Bond Fund |
||||||||||
ASSETS |
||||||||||||
Securities, at cost |
$ | 48,648,615 | $ | 372,603,823 | $ | 65,497,186 | ||||||
Affiliate securities, at cost |
— | — | 60,517,810 | |||||||||
Securities Lending Reinvestments, at cost |
— | — | — | |||||||||
|
|
|||||||||||
Securities, at value† |
47,966,046 | 373,249,774 | 65,841,943 | |||||||||
Affiliate securities, at value |
— | — | 60,579,157 | |||||||||
Securities Lending Reinvestments, at value |
— | — | — | |||||||||
Cash |
1,086,217 | 1,002,915 | 113,319 | |||||||||
Cash segregated at broker* |
— | — | — | |||||||||
Foreign cash†† |
— | — | — | |||||||||
Restricted cash** |
— | — | — | |||||||||
Due from Authorized Participant |
— | — | — | |||||||||
Unrealized appreciation on forward foreign currency contracts |
— | — | — | |||||||||
Receivables: |
||||||||||||
Dividends and interest |
378,674 | 1,097,470 | — | |||||||||
Securities lending income |
— | — | — | |||||||||
Capital shares issued |
— | — | 3,277,706 | |||||||||
Investment adviser |
38 | — | 40 | |||||||||
Securities sold |
1,275,399 | — | — | |||||||||
Variation margin on futures contracts |
— | — | — | |||||||||
|
|
|||||||||||
Total Assets |
50,706,374 | 375,350,159 | 129,812,165 | |||||||||
|
|
|||||||||||
LIABILITIES |
||||||||||||
Cash overdraft |
— | — | — | |||||||||
Unrealized depreciation on forward foreign currency contracts |
— | — | — | |||||||||
Due to brokers |
— | — | — | |||||||||
Payables: |
||||||||||||
Cash collateral received from securities loaned |
— | — | — | |||||||||
Deferred compensation (Note 7) |
— | 29,507 | 5,535 | |||||||||
Investment advisory fees (Note 4) |
5,005 | 79,820 | 22,490 | |||||||||
Trustee fees (Note 7) |
92 | 2,266 | 676 | |||||||||
Securities purchased |
1,354,221 | 898,902 | 3,266,496 | |||||||||
Deferred non-US capital gains taxes |
— | — | — | |||||||||
Due to Authorized Participant |
— | — | — | |||||||||
Variation margin on futures contracts |
— | — | — | |||||||||
Capital shares redeemed |
— | — | — | |||||||||
Other |
— | 525 | — | |||||||||
|
|
|||||||||||
Total Liabilities |
1,359,318 | 1,011,020 | 3,295,197 | |||||||||
|
|
|||||||||||
Net Assets |
$ | 49,347,056 | $ | 374,339,139 | $ | 126,516,968 | ||||||
|
|
|||||||||||
NET ASSETS CONSIST OF: |
||||||||||||
Paid-in capital |
$ | 49,995,317 | $ | 372,684,906 | $ | 127,353,019 | ||||||
Distributable earnings (loss) |
(648,261 | ) | 1,654,233 | (836,051 | ) | |||||||
|
|
|||||||||||
Net Assets |
$ | 49,347,056 | $ | 374,339,139 | $ | 126,516,968 | ||||||
|
|
|||||||||||
Shares Outstanding (unlimited number of shares authorized $ 0.0001 par value) |
1,000,000 | 4,925,001 | 4,825,001 | |||||||||
Net Asset Value |
$ | 49.35 | $ | 76.01 | $ | 26.22 | ||||||
† 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. |
** |
Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
66 | FLEXSHARES ANNUAL REPORT |
FlexShares® Trust
For the year ended October 31, 2021
FlexShares® US Quality Low Volatility Index Fund |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund |
FlexShares® Emerging Markets Quality Low Volatility Index Fund |
FlexShares® Morningstar US Market Factor Tilt Index Fund |
|||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income |
$ | 1,960,410 | $ | 2,694,925 | $ | 502,286 | $ | 24,175,508 | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | 21,094 | ||||||||||||
Interest income |
27 | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
2,616 | 6,328 | 12 | 339,509 | ||||||||||||
Foreign withholding tax on dividends |
(3,739 | ) | (204,616 | ) | (57,825 | ) | (15,742 | ) | ||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
1,959,314 | 2,496,637 | 444,473 | 24,520,369 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
4,266 | 2,537 | 450 | 47,741 | ||||||||||||
Investment advisory fees |
308,386 | 265,648 | 59,572 | 3,969,352 | ||||||||||||
Trustee fees (Note 7) |
8,674 | 5,186 | 946 | 98,625 | ||||||||||||
Other expenses (Note 4) |
— | — | — | 1,194 | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
321,326 | 273,371 | 60,968 | 4,116,912 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Investment advisory fees reimbursed (Note 4) |
(5,703 | ) | (3,428 | ) | (633 | ) | (64,277 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
315,623 | 269,943 | 60,335 | 4,052,635 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
1,643,691 | 2,226,694 | 384,138 | 20,467,734 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | 22,960 | ||||||||||||
Transactions in investment securities |
(132,822 | ) | 1,234,397 | 175,858 | (1) | 58,792,001 | ||||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
9,882,528 | 2,677,721 | — | 63,250,899 | ||||||||||||
Expiration or closing of futures contracts |
127,448 | 148,680 | 31,848 | 3,657,774 | ||||||||||||
Settlement of forward foreign currency contracts |
— | 4,409 | (141 | ) | — | |||||||||||
Foreign currency transactions |
— | (4,971 | ) | (3,348 | ) | — | ||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
9,877,154 | 4,060,236 | 204,217 | 125,723,634 | ||||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities |
29,471,830 | 8,894,027 | 673,724 | (2) | 435,676,544 | (3) | ||||||||||
Securities lending |
— | — | — | (2,159 | ) | |||||||||||
Futures contracts |
14,590 | 34,155 | (3,337 | ) | 629,382 | |||||||||||
Forward foreign currency contracts |
— | 3,496 | 2 | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
— | (7,171 | ) | (1,228 | ) | — | ||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
29,486,420 | 8,924,507 | 669,161 | 436,303,767 | ||||||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
39,363,574 | 12,984,743 | 873,378 | 562,027,401 | ||||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 41,007,265 | $ | 15,211,437 | $ | 1,257,516 | $ | 582,495,135 | ||||||||
|
|
(1) |
Net of non-US capital gains tax of $(25,485). |
(2) |
Net of deferred non-US capital gains tax of $45,878. |
(3) |
Includes $305,597 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 67 |
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 |
$ | 17,900,240 | $ | 10,486,939 | $ | 1,509,720 | $ | 2,577,452 | ||||||||
Income from non-cash dividends |
1,277,437 | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | — | ||||||||||||
Interest income |
865 | 742 | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
487,288 | 215,163 | 5,694 | 4,318 | ||||||||||||
Foreign withholding tax on dividends |
(1,845,334 | ) | (1,240,737 | ) | — | — | ||||||||||
Foreign withholding tax on interest |
— | (11 | ) | — | — | |||||||||||
|
|
|||||||||||||||
Total Investment Income |
17,820,496 | 9,462,096 | 1,515,414 | 2,581,770 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
19,403 | 9,214 | 2,932 | 4,671 | ||||||||||||
Investment advisory fees |
2,461,755 | 1,821,138 | 337,429 | 521,784 | ||||||||||||
Trustee fees (Note 7) |
38,193 | 19,072 | 6,451 | 10,278 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
2,519,351 | 1,849,424 | 346,812 | 536,733 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Investment advisory fees reimbursed (Note 4) |
(23,722 | ) | (11,515 | ) | (3,807 | ) | (6,351 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
2,495,629 | 1,837,909 | 343,005 | 530,382 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
15,324,867 | 7,624,187 | 1,172,409 | 2,051,388 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
4,224,755 | 25,155,105 | 1,011,876 | 781,888 | ||||||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
14,065,818 | — | 4,606,626 | 24,349,402 | ||||||||||||
Expiration or closing of futures contracts |
3,673,620 | 659,219 | 202,390 | 364,068 | ||||||||||||
Settlement of forward foreign currency contracts |
(76,242 | ) | 41,019 | — | — | |||||||||||
Foreign currency transactions |
(31,061 | ) | (243,994 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
21,856,890 | 25,611,349 | 5,820,892 | 25,495,358 | ||||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
151,750,323 | 31,299,941 | (1) | 26,066,559 | 24,881,088 | |||||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
696,497 | (104,240 | ) | 59,805 | 54,699 | |||||||||||
Forward foreign currency contracts |
(62,544 | ) | (2,980 | ) | — | — | ||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
(81,348 | ) | (15,948 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
152,302,928 | 31,176,773 | 26,126,364 | 24,935,787 | ||||||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
174,159,818 | 56,788,122 | 31,947,256 | 50,431,145 | ||||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 189,484,685 | $ | 64,412,309 | $ | 33,119,665 | $ | 52,482,533 | ||||||||
|
|
(1) |
Net of deferred non-US capital gains tax of $929,952. |
See Accompanying Notes to the Financial Statements.
68 | 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® Morningstar Global Upstream Natural Resources Index Fund |
|||||||||||||
September 20, 2021* through October 31, 2021 |
September 20, 2021* through October 31, 2021 |
|||||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income |
$ | 3,097,926 | $ | 3,110 | $ | 16,628 | $ | 220,259,352 | ||||||||
Income from non-cash dividends |
228,654 | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | — | ||||||||||||
Interest income |
226 | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
12,548 | — | — | 1,266,543 | ||||||||||||
Foreign withholding tax on dividends |
(190,869 | ) | — | (146 | ) | (10,289,688 | ) | |||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
3,148,485 | 3,110 | 16,482 | 211,236,207 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
4,747 | (2 | )(1) | (5 | )(1) | 135,136 | ||||||||||
Investment advisory fees |
683,660 | 257 | 679 | 21,980,412 | ||||||||||||
Trustee fees (Note 7) |
10,055 | 19 | 38 | 296,195 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
698,462 | 274 | 712 | 22,411,743 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Investment advisory fees reimbursed (Note 4) |
(6,018 | ) | (2 | ) | (5 | ) | (172,689 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
692,444 | 272 | 707 | 22,239,054 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
2,456,041 | 2,838 | 15,775 | 188,997,153 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
3,079,204 | (534 | ) | (948 | ) | (113,074,043 | )(2) | |||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
10,142,935 | — | — | 31,786,733 | ||||||||||||
Expiration or closing of futures contracts |
566,309 | — | — | 9,279,717 | ||||||||||||
Settlement of forward foreign currency contracts |
(4,109 | ) | — | — | 72,141 | |||||||||||
Foreign currency transactions |
10,909 | — | 171 | 31,107 | ||||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
13,795,248 | (534 | ) | (777 | ) | (71,904,345 | ) | |||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
34,407,734 | 165,942 | 105,321 | 1,407,033,411 | (3) | |||||||||||
Securities lending |
— | — | — | (991 | ) | |||||||||||
Futures contracts |
96,635 | 1,240 | — | 1,659,537 | ||||||||||||
Forward foreign currency contracts |
7,708 | — | (1,347 | ) | 318,711 | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
(13,347 | ) | — | (83 | ) | 35,353 | ||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
34,498,730 | 167,182 | 103,891 | 1,409,046,021 | ||||||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
48,293,978 | 166,648 | 103,114 | 1,337,141,676 | ||||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 50,750,019 | $ | 169,486 | $ | 118,889 | $ | 1,526,138,829 | ||||||||
|
|
* |
Commencement of investment operations. |
(1) |
The deferred compensation expense reflects the periodic adjustment of the performance of the investment options selected by the Trustees. |
(2) |
Net of non-US capital gains tax of $(26,615). |
(3) |
Net of deferred non-US capital gains tax of $537,973. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 69 |
Statements of Operations (cont.)
FlexShares® STOXX® Global Broad Infrastructure Index Fund |
FlexShares® Global Quality Real Estate Index Fund |
FlexShares® Real Assets Allocation Index Fund |
FlexShares® Quality Dividend Index Fund |
|||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income |
$ | 78,083,218 | $ | 9,362,454 | $ | — | $ | 38,558,474 | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | 397,829 | — | ||||||||||||
Interest income |
— | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
550,601 | 58,200 | — | 119,288 | ||||||||||||
Foreign withholding tax on dividends |
(4,844,176 | ) | (439,205 | ) | — | — | ||||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
73,789,643 | 8,981,449 | 397,829 | 38,677,762 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
75,199 | 9,880 | 281 | 46,625 | ||||||||||||
Investment advisory fees |
11,848,820 | 1,540,255 | 85,509 | 5,628,359 | ||||||||||||
Trustee fees (Note 7) |
155,696 | 20,774 | 888 | 92,889 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
12,079,715 | 1,570,909 | 86,678 | 5,767,873 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Investment advisory fees reimbursed (Note 4) |
(97,737 | ) | (12,012 | ) | (68,101 | ) | (58,241 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
11,981,978 | 1,558,897 | 18,577 | 5,709,632 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
61,807,665 | 7,422,552 | 379,252 | 32,968,130 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | 43,863 | — | ||||||||||||
Transactions in investment securities |
(20,409,066 | )(1) | 6,245,084 | — | (248,572 | ) | ||||||||||
In-kind redemptions on investments in affiliated securities |
— | — | 190,124 | — | ||||||||||||
In-kind redemptions on investments in securities |
131,563,099 | 2,563,099 | — | 153,466,309 | ||||||||||||
Expiration or closing of futures contracts |
6,508,021 | 1,406,874 | — | 2,049,446 | ||||||||||||
Settlement of forward foreign currency contracts |
(91,529 | ) | (17,118 | ) | — | — | ||||||||||
Foreign currency transactions |
145,608 | 56,760 | — | — | ||||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
117,716,133 | 10,254,699 | 233,987 | 155,267,183 | ||||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities |
271,124,341 | (2) | 90,873,707 | 1,551,258 | (3) | 267,065,309 | ||||||||||
Securities lending |
— | — | — | (1,356 | ) | |||||||||||
Futures contracts |
1,176,125 | 144,019 | — | 452,671 | ||||||||||||
Forward foreign currency contracts |
(224,458 | ) | (5,310 | ) | — | — | ||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
(110,858 | ) | (2,920 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
271,965,150 | 91,009,496 | 1,551,258 | 267,516,624 | ||||||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
389,681,283 | 101,264,195 | 1,785,245 | 422,783,807 | ||||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 451,488,948 | $ | 108,686,747 | $ | 2,164,497 | $ | 455,751,937 | ||||||||
|
|
(1) |
Net of non-US capital gains tax of $(329,945). |
(2) |
Net of deferred non-US capital gains tax of $1,477,929. |
(3) |
Includes $1,551,258 change in unrealized appreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
70 | FLEXSHARES ANNUAL REPORT |
Statements of Operations (cont.)
FlexShares® Quality Dividend Defensive Index Fund |
FlexShares® Quality Dividend Dynamic Index Fund |
FlexShares® International Quality Dividend Index Fund |
FlexShares® International Quality Dividend Defensive Index Fund |
|||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income |
$ | 11,547,809 | $ | 474,130 | $ | 27,164,707 | $ | 3,435,307 | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | — | ||||||||||||
Interest income |
— | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) |
33,075 | 1,081 | 155,478 | 29,524 | ||||||||||||
Foreign withholding tax on dividends |
(3,016 | ) | — | (2,568,734 | ) | (325,770 | ) | |||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
11,577,868 | 475,211 | 24,751,451 | 3,139,061 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
14,832 | 555 | 17,531 | 2,208 | ||||||||||||
Investment advisory fees |
1,724,233 | 69,678 | 2,713,722 | 335,748 | ||||||||||||
Trustee fees (Note 7) |
28,506 | 1,155 | 35,464 | 4,384 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
1,767,571 | 71,388 | 2,766,717 | 342,340 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Investment advisory fees reimbursed (Note 4) |
(18,457 | ) | (701 | ) | (21,994 | ) | (2,763 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
1,749,114 | 70,687 | 2,744,723 | 339,577 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
9,828,754 | 404,524 | 22,006,728 | 2,799,484 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
504,855 | 1,197,541 | 42,211,633 | 5,331,173 | ||||||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
60,712,638 | 534,654 | 2,149,355 | 266,094 | ||||||||||||
Expiration or closing of futures contracts |
426,028 | 49,955 | 3,741,941 | 357,127 | ||||||||||||
Settlement of forward foreign currency contracts |
— | — | (16,251 | ) | (20,078 | ) | ||||||||||
Foreign currency transactions |
— | — | (21,534 | ) | (6,246 | ) | ||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
61,643,521 | 1,782,150 | 48,065,144 | 5,928,070 | ||||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities |
63,305,082 | 4,129,917 | 73,402,581 | (1) | 8,152,833 | (2) | ||||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
133,715 | 9,461 | 599,000 | 34,662 | ||||||||||||
Forward foreign currency contracts |
— | — | (132,128 | ) | 12,440 | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
— | — | (52,901 | ) | (4,796 | ) | ||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
63,438,797 | 4,139,378 | 73,816,552 | 8,195,139 | ||||||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
125,082,318 | 5,921,528 | 121,881,696 | 14,123,209 | ||||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 134,911,072 | $ | 6,326,052 | $ | 143,888,424 | $ | 16,922,693 | ||||||||
|
|
(1) |
Net of deferred non-US capital gains tax of $29,760. |
(2) |
Net of deferred non-US capital gains tax of $38,404. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 71 |
Statements of Operations (cont.)
FlexShares® International Quality Dividend Dynamic Index Fund |
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund |
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund |
FlexShares® Disciplined Duration MBS Index Fund |
|||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income |
$ | 2,778,396 | $ | — | $ | — | $ | — | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | — | ||||||||||||
Interest income |
— | 60,924,971 | 27,119,820 | 599,156 | ||||||||||||
Securities lending income (net of fees) (Note 2) |
18,396 | 41,838 | 44,439 | — | ||||||||||||
Foreign withholding tax on dividends |
(252,244 | ) | — | — | — | |||||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
2,544,548 | 60,966,809 | 27,164,259 | 599,156 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
1,336 | 43,686 | 18,991 | 3,354 | ||||||||||||
Investment advisory fees |
253,214 | 2,531,544 | 1,121,056 | 212,604 | ||||||||||||
Trustee fees (Note 7) |
3,394 | 85,201 | 37,701 | 6,578 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
257,944 | 2,660,431 | 1,177,748 | 222,536 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Investment advisory fees reimbursed (Note 4) |
(1,925 | ) | (58,667 | ) | (25,599 | ) | (4,646 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
256,019 | 2,601,764 | 1,152,149 | 217,890 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
2,288,529 | 58,365,045 | 26,012,110 | 381,266 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
1,846,868 | (1) | 14,489,204 | 7,518,316 | 1,283,596 | |||||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
— | 22,332,303 | 5,056,858 | — | ||||||||||||
Expiration or closing of futures contracts |
99,056 | — | — | — | ||||||||||||
Settlement of forward foreign currency contracts |
859 | — | — | — | ||||||||||||
Foreign currency transactions |
(27,488 | ) | — | — | — | |||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
1,919,295 | 36,821,507 | 12,575,174 | 1,283,596 | ||||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities |
5,795,270 | (2) | (1,328,792 | ) | 2,282,079 | (2,030,761 | ) | |||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
5,924 | — | — | — | ||||||||||||
Forward foreign currency contracts |
3,870 | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
1,168 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
5,806,232 | (1,328,792 | ) | 2,282,079 | (2,030,761 | ) | ||||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
7,725,527 | 35,492,715 | 14,857,253 | (747,165 | ) | |||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 10,014,056 | $ | 93,857,760 | $ | 40,869,363 | $ | (365,899 | ) | |||||||
|
|
(1) |
Net of non-US capital gains tax of $(10,955). |
(2) |
Net of deferred non-US capital gains tax of $60,290. |
See Accompanying Notes to the Financial Statements.
72 | FLEXSHARES ANNUAL REPORT |
Statements of Operations (cont.)
FlexShares® Credit- Scored US Corporate Bond Index Fund |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund |
FlexShares® High Yield Value- Scored Bond Index Fund |
FlexShares® ESG & Climate High Yield Corporate Core Index Fund |
|||||||||||||
September 20, 2021* through October 31, 2021 |
||||||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income |
$ | — | $ | — | $ | — | $ | — | ||||||||
Income from non-cash dividends |
— | — | — | — | ||||||||||||
Dividend income received from affiliate |
— | — | — | — | ||||||||||||
Interest income |
5,478,421 | 1,823,042 | 16,561,020 | 221,765 | ||||||||||||
Securities lending income (net of fees) (Note 2) |
— | — | — | — | ||||||||||||
Foreign withholding tax on dividends |
— | — | — | — | ||||||||||||
Foreign withholding tax on interest |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Investment Income |
5,478,421 | 1,823,042 | 16,561,020 | 221,765 | ||||||||||||
|
|
|||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) |
9,008 | 1,697 | 6,879 | — | ||||||||||||
Investment advisory fees |
630,609 | 119,227 | 1,060,642 | 12,878 | ||||||||||||
Trustee fees (Note 7) |
18,085 | 3,331 | 16,866 | 330 | ||||||||||||
Other expenses (Note 4) |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total Gross Expenses Before Fees Reimbursed |
657,702 | 124,255 | 1,084,387 | 13,208 | ||||||||||||
|
|
|||||||||||||||
Less: |
| |||||||||||||||
Investment advisory fees reimbursed (Note 4) |
(12,828 | ) | (2,326 | ) | (9,242 | ) | (57 | ) | ||||||||
|
|
|||||||||||||||
Total Net Expenses |
644,874 | 121,929 | 1,075,145 | 13,151 | ||||||||||||
|
|
|||||||||||||||
Net Investment Income (Loss) |
4,833,547 | 1,701,113 | 15,485,875 | 208,614 | ||||||||||||
|
|
|||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | — | — | ||||||||||||
Transactions in investment securities |
2,698,669 | 1,029,123 | 9,388,965 | (16,194 | ) | |||||||||||
In-kind redemptions on investments in affiliated securities |
— | — | — | — | ||||||||||||
In-kind redemptions on investments in securities |
315,686 | — | — | — | ||||||||||||
Expiration or closing of futures contracts |
— | — | — | — | ||||||||||||
Settlement of forward foreign currency contracts |
— | — | — | — | ||||||||||||
Foreign currency transactions |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Net Realized Gain (Loss) |
3,014,355 | 1,029,123 | 9,388,965 | (16,194 | ) | |||||||||||
|
|
|||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||||||
Investments in securities |
(6,321,483 | ) | (16,024 | ) | 1,852,410 | (409,765 | ) | |||||||||
Securities lending |
— | — | — | — | ||||||||||||
Futures contracts |
— | — | — | — | ||||||||||||
Forward foreign currency contracts |
— | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(6,321,483 | ) | (16,024 | ) | 1,852,410 | (409,765 | ) | |||||||||
|
|
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
(3,307,128 | ) | 1,013,099 | 11,241,375 | (425,959 | ) | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 1,526,419 | $ | 2,714,212 | $ | 26,727,250 | $ | (217,345 | ) | |||||||
|
|
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 73 |
Statements of Operations (cont.)
FlexShares® ESG & Climate Investment Grade Corporate Core Index Fund |
FlexShares® Ready Access Variable Income Fund |
FlexShares® Core Select Bond Fund |
||||||||||
September 20, 2021* through October 31, 2021 |
||||||||||||
INVESTMENT INCOME |
||||||||||||
Dividend income |
$ | — | $ | — | $ | 808,357 | ||||||
Income from non-cash dividends |
— | — | — | |||||||||
Dividend income received from affiliate |
— | — | 1,411,342 | |||||||||
Interest income |
109,485 | 3,680,722 | 37 | |||||||||
Securities lending income (net of fees) (Note 2) |
— | — | — | |||||||||
Foreign withholding tax on dividends |
— | — | — | |||||||||
Foreign withholding tax on interest |
— | — | — | |||||||||
|
|
|||||||||||
Total Investment Income |
109,485 | 3,680,722 | 2,219,736 | |||||||||
|
|
|||||||||||
EXPENSES |
||||||||||||
Deferred compensation (Note 7) |
— | 13,906 | 3,656 | |||||||||
Investment advisory fees |
6,638 | 1,041,826 | 404,146 | |||||||||
Trustee fees (Note 7) |
326 | 25,411 | 7,103 | |||||||||
Other expenses (Note 4) |
— | — | — | |||||||||
|
|
|||||||||||
Total Gross Expenses Before Fees Reimbursed |
6,964 | 1,081,143 | 414,905 | |||||||||
|
|
|||||||||||
Less: |
||||||||||||
Investment advisory fees reimbursed (Note 4) |
(57 | ) | (18,369 | ) | (186,303 | ) | ||||||
|
|
|||||||||||
Total Net Expenses |
6,907 | 1,062,774 | 228,602 | |||||||||
|
|
|||||||||||
Net Investment Income (Loss) |
102,578 | 2,617,948 | 1,991,134 | |||||||||
|
|
|||||||||||
NET REALIZED GAIN (LOSS) FROM: |
||||||||||||
Transactions in investment securities of affiliated issuers |
— | — | (1,286,163 | ) | ||||||||
Transactions in investment securities |
(68,270 | ) | 1,261,361 | 361,724 | ||||||||
In-kind redemptions on investments in affiliated securities |
— | — | 664,938 | |||||||||
In-kind redemptions on investments in securities |
— | — | 525,227 | |||||||||
Expiration or closing of futures contracts |
— | — | (12,967 | ) | ||||||||
Settlement of forward foreign currency contracts |
— | — | — | |||||||||
Foreign currency transactions |
— | — | — | |||||||||
|
|
|||||||||||
Net Realized Gain (Loss) |
(68,270 | ) | 1,261,361 | 252,759 | ||||||||
|
|
|||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
||||||||||||
Investments in securities |
(682,569 | ) | (2,362,864 | ) | (1,848,559 | )(2) | ||||||
Securities lending |
— | — | — | |||||||||
Futures contracts |
— | — | — | |||||||||
Forward foreign currency contracts |
— | — | — | |||||||||
Translation of other assets and liabilities denominated in foreign currencies |
— | — | — | |||||||||
|
|
|||||||||||
Net Change in Unrealized Appreciation (Depreciation) |
(682,569 | ) | (2,362,864 | ) | (1,848,559 | ) | ||||||
|
|
|||||||||||
Net Realized and Unrealized Gain (Loss) |
(750,839 | ) | (1,101,503 | ) | (1,595,800 | ) | ||||||
|
|
|||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | (648,261 | ) | $ | 1,516,445 | $ | 395,334 | |||||
|
|
* |
Commencement of investment operations. |
(2) |
Includes $(1,427,165) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
74 | 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, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 1,643,691 | $ | 820,548 | $ | 2,226,694 | $ | 1,041,274 | ||||||||
Net realized gain (loss) |
9,877,154 | (694,524 | ) | 4,060,236 | (1,704,692 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
29,486,420 | 1,304,851 | 8,924,507 | (1,448,187 | ) | |||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
41,007,265 | 1,430,875 | 15,211,437 | (2,111,605 | ) | |||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(1,694,565 | ) | (643,733 | ) | (2,249,889 | ) | (864,658 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(1,694,565 | ) | (643,733 | ) | (2,249,889 | ) | (864,658 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
56,108,720 | 107,381,424 | 13,390,874 | 63,603,016 | ||||||||||||
Cost of shares redeemed |
(44,870,466 | ) | (3,711,596 | ) | (16,728,469 | ) | — | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
11,238,254 | 103,669,828 | (3,337,595 | ) | 63,603,016 | |||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
50,550,954 | 104,456,970 | 9,623,953 | 60,626,753 | ||||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 110,523,538 | $ | 6,066,568 | $ | 65,747,004 | (3) | $ | 5,120,251 | (3) | ||||||
|
|
|||||||||||||||
End of Period |
$ | 161,074,492 | $ | 110,523,538 | $ | 75,370,957 | $ | 65,747,004 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
2,700,001 | 150,001 | 2,800,001 | 200,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
1,150,000 | 2,650,000 | 500,000 | 2,600,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(900,000 | ) | (100,000 | ) | (600,000 | ) | — | |||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
2,950,001 | 2,700,001 | 2,700,001 | 2,800,001 | ||||||||||||
|
|
(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. |
(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 | 75 |
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, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 384,138 | $ | 150,459 | $ | 20,467,734 | $ | 23,501,673 | ||||||||
Net realized gain (loss) |
204,217 | (556,324 | ) | 125,723,634 | 121,619,088 | |||||||||||
Net change in unrealized appreciation (depreciation) |
669,161 | 322,631 | 436,303,767 | (115,132,476 | ) | |||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
1,257,516 | (83,234 | ) | 582,495,135 | 29,988,285 | |||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(269,007 | ) | (168,979 | ) | (19,993,786 | ) | (23,509,426 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(269,007 | ) | (168,979 | ) | (19,993,786 | ) | (23,509,426 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
5,276,872 | 7,242,230 | 95,734,574 | 28,195,556 | ||||||||||||
Cost of shares redeemed |
— | (2,400,617 | ) | (106,003,334 | ) | (306,024,565 | ) | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
5,276,872 | 4,841,613 | (10,268,760 | ) | (277,829,009 | ) | ||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
6,265,381 | 4,589,400 | 552,232,589 | (271,350,150 | ) | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 9,578,310 | (3) | $ | 4,988,910 | (3) | $ | 1,174,786,429 | $ | 1,446,136,579 | ||||||
|
|
|||||||||||||||
End of Period |
$ | 15,843,691 | $ | 9,578,310 | $ | 1,727,019,018 | $ | 1,174,786,429 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
400,001 | 200,001 | 9,700,001 | 12,100,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
200,000 | 300,000 | 600,000 | 300,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
— | (100,000 | ) | (650,000 | ) | (2,700,000 | ) | |||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
600,001 | 400,001 | 9,650,001 | 9,700,001 | ||||||||||||
|
|
(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.
76 | 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, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 15,324,867 | $ | 16,169,983 | $ | 7,624,187 | $ | 6,156,347 | ||||||||
Net realized gain (loss) |
21,856,890 | (29,509,439 | ) | 25,611,349 | (12,435,161 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
152,302,928 | (111,181,202 | ) | 31,176,773 | (13,844,715 | ) | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
189,484,685 | (124,520,658 | ) | 64,412,309 | (20,123,529 | ) | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(13,410,048 | ) | (23,632,565 | ) | (6,011,707 | ) | (8,202,693 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(13,410,048 | ) | (23,632,565 | ) | (6,011,707 | ) | (8,202,693 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
44,016,396 | — | 50,124,591 | — | ||||||||||||
Cost of shares redeemed |
(70,468,136 | ) | (317,973,662 | ) | — | (159,241,139 | ) | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(26,451,740 | ) | (317,973,662 | ) | 50,124,591 | (159,241,139 | ) | |||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
149,622,897 | (466,126,885 | ) | 108,525,193 | (187,567,361 | ) | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 499,015,596 | $ | 965,142,481 | $ | 225,846,802 | $ | 413,414,163 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 648,638,493 | $ | 499,015,596 | $ | 334,371,995 | $ | 225,846,802 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
9,200,001 | 15,400,001 | 4,700,001 | 8,200,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
600,000 | — | 800,000 | — | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(1,000,000 | ) | (6,200,000 | ) | — | (3,500,000 | ) | |||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
8,800,001 | 9,200,001 | 5,500,001 | 4,700,001 | ||||||||||||
|
|
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 77 |
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, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 1,172,409 | $ | 1,048,649 | $ | 2,051,388 | $ | 1,203,766 | ||||||||
Net realized gain (loss) |
5,820,892 | 1,168,558 | 25,495,358 | (2,609,895 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) |
26,126,364 | 2,315,780 | 24,935,787 | 8,424,199 | ||||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
33,119,665 | 4,532,987 | 52,482,533 | 7,018,070 | ||||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
||||||||||||||||
Distributable earnings |
(1,136,947 | ) | (976,050 | ) | (1,955,493 | ) | (1,145,374 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(1,136,947 | ) | (976,050 | ) | (1,955,493 | ) | (1,145,374 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
||||||||||||||||
Proceeds from shares issued |
54,387,819 | 27,538,152 | 115,766,022 | 28,636,289 | ||||||||||||
Cost of shares redeemed |
(13,737,728 | ) | (10,423,258 | ) | (63,701,888 | ) | (1,481,524 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
40,650,091 | 17,114,894 | 52,064,134 | 27,154,765 | ||||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
72,632,809 | 20,671,831 | 102,591,174 | 33,027,461 | ||||||||||||
|
|
|||||||||||||||
NET ASSETS |
||||||||||||||||
Beginning of Period |
$ | 71,842,440 | $ | 51,170,609 | $ | 89,051,571 | $ | 56,024,110 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 144,475,249 | $ | 71,842,440 | $ | 191,642,745 | $ | 89,051,571 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
||||||||||||||||
Beginning of period |
2,025,001 | 1,475,001 | 1,125,001 | 775,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
1,150,000 | 850,000 | 1,200,000 | 375,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(300,000 | ) | (300,000 | ) | (625,000 | ) | (25,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
2,875,001 | 2,025,001 | 1,700,001 | 1,125,001 | ||||||||||||
|
|
(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.
78 | 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, 2021 |
Year
Ended October 31, 2020 |
September 20, 2021* through October 31, 2021 |
||||||||||
OPERATIONS |
| |||||||||||
Net investment income (loss) |
$ | 2,456,041 | $ | 1,657,054 | $ | 2,838 | ||||||
Net realized gain (loss) |
13,795,248 | (1,568,609 | ) | (534 | ) | |||||||
Net change in unrealized appreciation (depreciation) |
34,498,730 | 6,374,388 | 167,182 | |||||||||
|
|
|||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||
Resulting from Operations |
50,750,019 | 6,462,833 | 169,486 | |||||||||
|
|
|||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||
Distributable earnings |
(2,324,712 | ) | (1,663,474 | ) | ||||||||
Tax return of capital |
— | — | — | |||||||||
|
|
|||||||||||
Total distributions |
(2,324,712 | ) | (1,663,474 | ) | — | |||||||
|
|
|||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||
Proceeds from shares issued |
53,795,593 | 14,933,528 | — | |||||||||
Cost of shares redeemed |
(27,826,718 | ) | — | — | ||||||||
|
|
|||||||||||
Net Increase (Decrease) from Capital Transactions |
25,968,875 | 14,933,528 | — | |||||||||
|
|
|||||||||||
Total Increase (Decrease) in Net Assets |
74,394,182 | 19,732,887 | 169,486 | |||||||||
|
|
|||||||||||
NET ASSETS |
| |||||||||||
Beginning of Period |
$ | 111,323,292 | $ | 91,590,405 | $ | 2,500,000 | (2) | |||||
|
|
|||||||||||
End of Period |
$ | 185,717,474 | $ | 111,323,292 | $ | 2,669,486 | ||||||
|
|
|||||||||||
SHARE TRANSACTIONS |
| |||||||||||
Beginning of period |
1,050,001 | 900,001 | 50,000 | (2) | ||||||||
Shares issued |
— | — | — | |||||||||
Shares issued in-kind |
400,000 | 150,000 | — | |||||||||
Shares redeemed |
— | — | — | |||||||||
Shares redeemed in-kind |
(200,000 | ) | — | — | ||||||||
|
|
|||||||||||
Shares Outstanding, End of Period |
1,250,001 | 1,050,001 | 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 | 79 |
Statements of Changes in Net Assets (cont.)
FlexShares® ESG & Climate Developed Markets ex-US Core Index Fund |
FlexShares® Morningstar Global Upstream Natural Resources Index Fund |
|||||||||||
September 20, October 31, |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
||||||||||
OPERATIONS |
| |||||||||||
Net investment income (loss) |
$ | 15,775 | $ | 188,997,153 | $ | 119,595,799 | ||||||
Net realized gain (loss) |
(777 | ) | (71,904,345 | ) | (39,761,254 | ) | ||||||
Net change in unrealized appreciation (depreciation) |
103,891 | 1,409,046,021 | (779,563,599 | ) | ||||||||
|
|
|||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||
Resulting from Operations |
118,889 | 1,526,138,829 | (699,729,054 | ) | ||||||||
|
|
|||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||
Distributable earnings |
(167,354,837 | ) | (122,625,164 | ) | ||||||||
Tax return of capital |
— | — | — | |||||||||
|
|
|||||||||||
Total distributions |
— | (167,354,837 | ) | (122,625,164 | ) | |||||||
|
|
|||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||
Proceeds from shares issued |
— | 1,894,646,901 | 8,825,295 | |||||||||
Cost of shares redeemed |
— | (125,446,435 | ) | (1,771,946,391 | ) | |||||||
|
|
|||||||||||
Net Increase (Decrease) from Capital Transactions |
— | 1,769,200,466 | (1,763,121,096 | ) | ||||||||
|
|
|||||||||||
Total Increase (Decrease) in Net Assets |
118,889 | 3,127,984,458 | (2,585,475,314 | ) | ||||||||
|
|
|||||||||||
NET ASSETS |
| |||||||||||
Beginning of Period |
$ | 5,000,171 | (2) | $ | 2,924,725,808 | $ | 5,510,201,122 | |||||
|
|
|||||||||||
End of Period |
$ | 5,119,060 | $ | 6,052,710,266 | $ | 2,924,725,808 | ||||||
|
|
|||||||||||
SHARE TRANSACTIONS |
| |||||||||||
Beginning of period |
100,000 | (2) | 109,500,001 | 175,500,001 | ||||||||
Shares issued |
— | — | — | |||||||||
Shares issued in-kind |
— | 50,850,000 | 250,000 | |||||||||
Shares redeemed |
— | — | — | |||||||||
Shares redeemed in-kind |
— | (3,800,000 | ) | (66,250,000 | ) | |||||||
|
|
|||||||||||
Shares Outstanding, End of Period |
100,000 | 156,550,001 | 109,500,001 | |||||||||
|
|
* |
Commencement of investment operations. |
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
(2) |
Amount includes the initial subscription. |
See Accompanying Notes to the Financial Statements.
80 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® STOXX® Global Broad Infrastructure Index Fund |
FlexShares® Global Quality Real Estate Index Fund |
|||||||||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 61,807,665 | $ | 42,348,376 | $ | 7,422,552 | $ | 8,457,554 | ||||||||
Net realized gain (loss) |
117,716,133 | (51,372,425 | ) | 10,254,699 | (20,467,829 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
271,965,150 | (114,928,084 | ) | 91,009,496 | (76,869,427 | ) | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
451,488,948 | (123,952,133 | ) | 108,686,747 | (88,879,702 | ) | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(58,905,802 | ) | (40,390,855 | ) | (5,654,125 | ) | (14,558,175 | ) | ||||||||
Tax return of capital |
— | — | — | (168,159 | ) | |||||||||||
|
|
|||||||||||||||
Total distributions |
(58,905,802 | ) | (40,390,855 | ) | (5,654,125 | ) | (14,726,334 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
754,964,371 | 660,871,183 | 74,006,928 | 85,130,549 | ||||||||||||
Cost of shares redeemed |
(360,237,628 | ) | (116,962,142 | ) | (23,016,532 | ) | (93,214,545 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
394,726,743 | 543,909,041 | 50,990,396 | (8,083,996 | ) | |||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
787,309,889 | 379,566,053 | 154,023,018 | (111,690,032 | ) | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 1,856,596,177 | $ | 1,477,030,124 | $ | 264,574,365 | $ | 376,264,397 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 2,643,906,066 | $ | 1,856,596,177 | $ | 418,597,383 | $ | 264,574,365 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
38,600,001 | 28,100,001 | 5,200,001 | 5,650,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
13,350,000 | 13,400,000 | 1,150,000 | 1,450,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(6,150,000 | ) | (2,900,000 | ) | (400,000 | ) | (1,900,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
45,800,001 | 38,600,001 | 5,950,001 | 5,200,001 | ||||||||||||
|
|
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 81 |
Statements of Changes in Net Assets (cont.)
FlexShares® Real
Assets Allocation Index Fund |
FlexShares® Quality
Dividend Index Fund |
|||||||||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 379,252 | $ | 278,087 | $ | 32,968,130 | $ | 41,042,206 | ||||||||
Net realized gain (loss) |
233,987 | (288,406 | ) | 155,267,183 | 63,818,614 | |||||||||||
Net change in unrealized appreciation (depreciation) |
1,551,258 | (1,066,621 | ) | 267,516,624 | (185,641,841 | ) | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
2,164,497 | (1,076,940 | ) | 455,751,937 | (80,781,021 | ) | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(383,940 | ) | (278,767 | ) | (31,171,462 | ) | (51,028,755 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(383,940 | ) | (278,767 | ) | (31,171,462 | ) | (51,028,755 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
24,868,156 | — | 441,818,714 | 147,107,228 | ||||||||||||
Cost of shares redeemed |
(850,756 | ) | (5,503,899 | ) | (489,030,914 | ) | (457,464,822 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
24,017,400 | (5,503,899 | ) | (47,212,200 | ) | (310,357,594 | ) | |||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
25,797,957 | (6,859,606 | ) | 377,368,275 | (442,167,370 | ) | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 4,501,729 | $ | 11,361,335 | $ | 1,265,176,605 | $ | 1,707,343,975 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 30,299,686 | $ | 4,501,729 | $ | 1,642,544,880 | $ | 1,265,176,605 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
175,001 | 375,001 | 29,150,001 | 36,850,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
750,000 | — | 8,100,000 | 3,250,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(25,000 | ) | (200,000 | ) | (9,100,000 | ) | (10,950,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
900,001 | 175,001 | 28,150,001 | 29,150,001 | ||||||||||||
|
|
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
82 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® Quality Dividend Defensive Index Fund |
FlexShares® Quality Dividend Dynamic Index Fund |
|||||||||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 9,828,754 | $ | 12,604,759 | $ | 404,524 | $ | 844,204 | ||||||||
Net realized gain (loss) |
61,643,521 | 9,870,639 | 1,782,150 | 2,220,861 | ||||||||||||
Net change in unrealized appreciation (depreciation) |
63,438,797 | (42,112,077 | ) | 4,139,378 | (6,207,406 | ) | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
134,911,072 | (19,636,679 | ) | 6,326,052 | (3,142,341 | ) | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(9,806,498 | ) | (16,131,191 | ) | (369,573 | ) | (962,948 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(9,806,498 | ) | (16,131,191 | ) | (369,573 | ) | (962,948 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
116,279,178 | 120,783,417 | 5,862,851 | — | ||||||||||||
Cost of shares redeemed |
(204,498,560 | ) | (124,805,477 | ) | (3,095,145 | ) | (35,021,933 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
(88,219,382 | ) | (4,022,060 | ) | 2,767,706 | (35,021,933 | ) | |||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
36,885,192 | (39,789,930 | ) | 8,724,185 | (39,127,222 | ) | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 411,172,794 | $ | 450,962,724 | $ | 13,180,819 | $ | 52,308,041 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 448,057,986 | $ | 411,172,794 | $ | 21,905,004 | $ | 13,180,819 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
9,650,001 | 9,750,001 | 300,001 | 1,150,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
2,250,000 | 2,800,000 | 100,000 | — | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(3,900,000 | ) | (2,900,000 | ) | (50,000 | ) | (850,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
8,000,001 | 9,650,001 | 350,001 | 300,001 | ||||||||||||
|
|
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 83 |
Statements of Changes in Net Assets (cont.)
FlexShares® International Quality Dividend Index Fund |
FlexShares® International Quality Dividend Defensive Index Fund |
|||||||||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
||||||||||||||||
Net investment income (loss) |
$ | 22,006,728 | $ | 21,426,092 | $ | 2,799,484 | $ | 2,469,326 | ||||||||
Net realized gain (loss) |
48,065,144 | (49,578,473 | ) | 5,928,070 | (6,127,777 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
73,816,552 | (36,850,169 | ) | 8,195,139 | (2,835,580 | ) | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
143,888,424 | (65,002,550 | ) | 16,922,693 | (6,494,031 | ) | ||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
||||||||||||||||
Distributable earnings |
(20,693,535 | ) | (22,159,155 | ) | (2,683,528 | ) | (2,523,077 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(20,693,535 | ) | (22,159,155 | ) | (2,683,528 | ) | (2,523,077 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
||||||||||||||||
Proceeds from shares issued |
60,426,090 | 9,495,567 | — | 3,677,673 | ||||||||||||
Cost of shares redeemed |
(21,090,657 | ) | (243,541,907 | ) | (2,184,308 | ) | (13,975,686 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
39,335,433 | (234,046,340 | ) | (2,184,308 | ) | (10,298,013 | ) | |||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
162,530,322 | (321,208,045 | ) | 12,054,857 | (19,315,121 | ) | ||||||||||
|
|
|||||||||||||||
NET ASSETS |
||||||||||||||||
Beginning of Period |
$ | 453,476,581 | $ | 774,684,626 | $ | 59,403,734 | $ | 78,718,855 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 616,006,903 | $ | 453,476,581 | $ | 71,458,591 | $ | 59,403,734 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
||||||||||||||||
Beginning of period |
22,500,001 | 33,600,001 | 3,100,001 | 3,600,001 | ||||||||||||
Shares issued |
— | — | — | — | ||||||||||||
Shares issued in-kind |
2,300,000 | 400,000 | — | 200,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
(900,000 | ) | (11,500,000 | ) | (100,000 | ) | (700,000 | ) | ||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
23,900,001 | 22,500,001 | 3,000,001 | 3,100,001 | ||||||||||||
|
|
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
84 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® International Quality Dividend Dynamic Index Fund |
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund |
|||||||||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
||||||||||||||||
Net investment income (loss) |
$ | 2,288,529 | $ | 925,989 | $ | 58,365,045 | $ | 16,808,449 | ||||||||
Net realized gain (loss) |
1,919,295 | (878,854 | ) | 36,821,507 | 12,155,953 | |||||||||||
Net change in unrealized appreciation (depreciation) |
5,806,232 | (3,322,029 | ) | (1,328,792 | ) | 42,400,460 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
10,014,056 | (3,274,894 | ) | 93,857,760 | 71,364,862 | |||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
||||||||||||||||
Distributable earnings |
(1,876,931 | ) | (952,482 | ) | (61,292,947 | ) | (12,627,726 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(1,876,931 | ) | (952,482 | ) | (61,292,947 | ) | (12,627,726 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
||||||||||||||||
Proceeds from shares issued |
45,461,250 | 10,025,244 | 302,448,698 | 343,216,451 | ||||||||||||
Cost of shares redeemed |
— | (30,812,569 | ) | (326,919,699 | ) | (151,185,194 | ) | |||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
45,461,250 | (20,787,325 | ) | (24,471,001 | ) | 192,031,257 | ||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
53,598,375 | (25,014,701 | ) | 8,093,812 | 250,768,393 | |||||||||||
|
|
|||||||||||||||
NET ASSETS |
||||||||||||||||
Beginning of Period |
$ | 22,376,322 | $ | 47,391,023 | $ | 1,429,490,607 | $ | 1,178,722,214 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 75,974,697 | $ | 22,376,322 | $ | 1,437,584,419 | $ | 1,429,490,607 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
||||||||||||||||
Beginning of period |
1,000,001 | 1,900,001 | 55,554,000 | 47,954,000 | ||||||||||||
Shares issued |
— | — | — | 350,000 | ||||||||||||
Shares issued in-kind |
1,500,000 | 400,000 | 11,450,000 | 13,350,000 | ||||||||||||
Shares redeemed |
— | — | — | — | ||||||||||||
Shares redeemed in-kind |
— | (1,300,000 | ) | (12,500,000 | ) | (6,100,000 | ) | |||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
2,500,001 | 1,000,001 | 54,504,000 | 55,554,000 | ||||||||||||
|
|
(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 | 85 |
Statements of Changes in Net Assets (cont.)
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund |
FlexShares®
Disciplined Duration MBS Index Fund |
|||||||||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 26,012,110 | $ | 7,386,692 | $ | 381,266 | $ | 1,028,489 | ||||||||
Net realized gain (loss) |
12,575,174 | 9,689,662 | 1,283,596 | 348,869 | ||||||||||||
Net change in unrealized appreciation (depreciation) |
2,282,079 | 25,429,146 | (2,030,761 | ) | 1,683,407 | |||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
40,869,363 | 42,505,500 | (365,899 | ) | 3,060,765 | |||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(26,674,665 | ) | (5,908,902 | ) | (2,676,548 | ) | (1,754,929 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(26,674,665 | ) | (5,908,902 | ) | (2,676,548 | ) | (1,754,929 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
155,885,058 | 119,287,446 | 19,053,611 | 66,955,234 | ||||||||||||
Cost of shares redeemed |
(51,695,657 | ) | (116,973,562 | ) | (4,788,861 | ) | (3,570,206 | ) | ||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
104,189,401 | 2,313,884 | 14,264,750 | 63,385,028 | ||||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
118,384,099 | 38,910,482 | 11,222,303 | 64,690,864 | ||||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 596,095,210 | $ | 557,184,728 | $ | 100,020,485 | $ | 35,329,621 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 714,479,309 | $ | 596,095,210 | $ | 111,242,788 | $ | 100,020,485 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
21,800,001 | 21,850,001 | 4,150,001 | 1,500,001 | ||||||||||||
Shares issued |
— | — | 800,000 | 2,800,000 | ||||||||||||
Shares issued in-kind |
5,550,000 | 4,450,000 | — | — | ||||||||||||
Shares redeemed |
— | — | (200,000 | ) | (150,000 | ) | ||||||||||
Shares redeemed in-kind |
(1,850,000 | ) | (4,500,000 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
25,500,001 | 21,800,001 | 4,750,001 | 4,150,001 | ||||||||||||
|
|
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
86 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® Credit-Scored US Corporate Bond Index Fund |
FlexShares® Credit-Scored US Long Corporate Bond Index Fund |
|||||||||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) |
$ | 4,833,547 | $ | 3,543,318 | $ | 1,701,113 | $ | 1,108,090 | ||||||||
Net realized gain (loss) |
3,014,355 | 2,972,745 | 1,029,123 | 1,951,533 | ||||||||||||
Net change in unrealized appreciation (depreciation) |
(6,321,483 | ) | 3,098,927 | (16,024 | ) | 168,819 | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||||||
Resulting from Operations |
1,526,419 | 9,614,990 | 2,714,212 | 3,228,442 | ||||||||||||
|
|
|||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributable earnings |
(7,983,218 | ) | (3,976,789 | ) | (3,440,094 | ) | (1,038,434 | ) | ||||||||
Tax return of capital |
— | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total distributions |
(7,983,218 | ) | (3,976,789 | ) | (3,440,094 | ) | (1,038,434 | ) | ||||||||
|
|
|||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued |
133,299,728 | 99,484,140 | 27,084,379 | 26,818,282 | ||||||||||||
Cost of shares redeemed |
(13,500,359 | ) | — | (11,864,331 | ) | — | ||||||||||
|
|
|||||||||||||||
Net Increase (Decrease) from Capital Transactions |
119,799,369 | 99,484,140 | 15,220,048 | 26,818,282 | ||||||||||||
|
|
|||||||||||||||
Total Increase (Decrease) in Net Assets |
113,342,570 | 105,122,341 | 14,494,166 | 29,008,290 | ||||||||||||
|
|
|||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period |
$ | 202,397,409 | $ | 97,275,068 | $ | 46,360,411 | $ | 17,352,121 | ||||||||
|
|
|||||||||||||||
End of Period |
$ | 315,739,979 | $ | 202,397,409 | $ | 60,854,577 | $ | 46,360,411 | ||||||||
|
|
|||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period |
3,700,001 | 1,850,001 | 750,001 | 300,001 | ||||||||||||
Shares issued |
2,250,000 | 1,850,000 | 450,000 | 450,000 | ||||||||||||
Shares issued in-kind |
200,000 | — | — | — | ||||||||||||
Shares redeemed |
— | — | (200,000 | ) | — | |||||||||||
Shares redeemed in-kind |
(250,000 | ) | — | — | — | |||||||||||
|
|
|||||||||||||||
Shares Outstanding, End of Period |
5,900,001 | 3,700,001 | 1,000,001 | 750,001 | ||||||||||||
|
|
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 87 |
Statements of Changes in Net Assets (cont.)
FlexShares® High
Yield Value-Scored Bond Index Fund |
FlexShares® ESG & Climate High Yield Corporate Core Index Fund |
|||||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
September 20, 2021* through October 31, 2021 |
||||||||||
OPERATIONS |
| |||||||||||
Net investment income (loss) |
$ | 15,485,875 | $ | 10,800,929 | $ | 208,614 | ||||||
Net realized gain (loss) |
9,388,965 | (4,005,108 | ) | (16,194 | ) | |||||||
Net change in unrealized appreciation (depreciation) |
1,852,410 | (1,237,194 | ) | (409,765 | ) | |||||||
|
|
|||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||
Resulting from Operations |
26,727,250 | 5,558,627 | (217,345 | ) | ||||||||
|
|
|||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||
Distributable earnings |
(14,752,663 | ) | (9,992,636 | ) | ||||||||
Tax return of capital |
— | — | — | |||||||||
|
|
|||||||||||
Total distributions |
(14,752,663 | ) | (9,992,636 | ) | — | |||||||
|
|
|||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||
Proceeds from shares issued |
415,533,944 | 93,576,705 | — | |||||||||
Cost of shares redeemed |
(41,947,766 | ) | — | |
— |
| ||||||
|
|
|||||||||||
Net Increase (Decrease) from Capital Transactions |
373,586,178 | 93,576,705 | |
— |
| |||||||
|
|
|||||||||||
Total Increase (Decrease) in Net Assets |
385,560,765 | 89,142,696 | (217,345 | ) | ||||||||
|
|
|||||||||||
NET ASSETS |
| |||||||||||
Beginning of Period |
$ | 189,622,935 | $ | 100,480,239 | $ | 49,983,980 | (2)(3) | |||||
|
|
|||||||||||
End of Period |
$ | 575,183,700 | $ | 189,622,935 | $ | 49,766,635 | ||||||
|
|
|||||||||||
SHARE TRANSACTIONS |
| |||||||||||
Beginning of period |
4,100,001 | 2,100,001 | 1,000,000 | (2) | ||||||||
Shares issued |
7,200,000 | 2,000,000 | — | |||||||||
Shares issued in-kind |
1,150,000 | — | — | |||||||||
Shares redeemed |
(850,000 | ) | — | — | ||||||||
Shares redeemed in-kind |
— | — | — | |||||||||
|
|
|||||||||||
Shares Outstanding, End of Period |
11,600,001 | 4,100,001 | 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.
88 | FLEXSHARES ANNUAL REPORT |
Statements of Changes in Net Assets (cont.)
FlexShares® ESG & Climate Investment Grade Corporate Core Index Fund |
FlexShares® Ready
Access Variable Income Fund |
|||||||||||
September 20, 2021* through October 31, 2021 |
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
||||||||||
OPERATIONS |
| |||||||||||
Net investment income (loss) |
$ | 102,578 | $ | 2,617,948 | $ | 4,996,263 | ||||||
Net realized gain (loss) |
(68,270 | ) | 1,261,361 | 169,631 | ||||||||
Net change in unrealized appreciation (depreciation) |
(682,569 | ) | (2,362,864 | ) | 1,872,649 | |||||||
|
|
|||||||||||
Net Increase (Decrease) in Net Assets |
||||||||||||
Resulting from Operations |
(648,261 | ) | 1,516,445 | 7,038,543 | ||||||||
|
|
|||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||
Distributable earnings |
(3,046,370 | ) | (5,325,015 | ) | ||||||||
Tax return of capital |
— | — | — | |||||||||
|
|
|||||||||||
Total distributions |
— | (3,046,370 | ) | (5,325,015 | ) | |||||||
|
|
|||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||
Proceeds from shares issued |
— | 55,265,356 | 218,827,724 | |||||||||
Cost of shares redeemed |
|
— |
|
(148,597,576 | ) | (26,436,867 | ) | |||||
|
|
|||||||||||
Net Increase (Decrease) from Capital Transactions |
|
— |
|
(93,332,220 | ) | 192,390,857 | ||||||
|
|
|||||||||||
Total Increase (Decrease) in Net Assets |
(648,261 | ) | (94,862,145 | ) | 194,104,385 | |||||||
|
|
|||||||||||
NET ASSETS |
| |||||||||||
Beginning of Period |
$ | 49,995,317 | (2)(3) | $ | 469,201,284 | $ | 275,096,899 | |||||
|
|
|||||||||||
End of Period |
$ | 49,347,056 | $ | 374,339,139 | $ | 469,201,284 | ||||||
|
|
|||||||||||
SHARE TRANSACTIONS |
| |||||||||||
Beginning of period |
1,000,000 | (2) | 6,150,001 | 3,625,001 | ||||||||
Shares issued |
— | 725,000 | 2,875,000 | |||||||||
Shares issued in-kind |
— | — | — | |||||||||
Shares redeemed |
— | (1,950,000 | ) | (350,000 | ) | |||||||
Shares redeemed in-kind |
— | — | — | |||||||||
|
|
|||||||||||
Shares Outstanding, End of Period |
1,000,000 | 4,925,001 | 6,150,001 | |||||||||
|
|
* |
Commencement of investment operations. |
(1) |
Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
(2) |
Amount includes the initial subscription. |
(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 | 89 |
Statements of Changes in Net Assets (cont.)
FlexShares® Core Select Bond Fund |
||||||||
Year
Ended October 31, 2021 |
Year
Ended October 31, 2020 |
|||||||
OPERATIONS |
| |||||||
Net investment income (loss) |
$ | 1,991,134 | $ | 1,184,248 | ||||
Net realized gain (loss) |
252,759 | 770,397 | ||||||
Net change in unrealized appreciation (depreciation) |
(1,848,559 | ) | 1,203,701 | |||||
|
|
|||||||
Net Increase (Decrease) in Net Assets |
||||||||
Resulting from Operations |
395,334 | 3,158,346 | ||||||
|
|
|||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||
Distributable earnings |
(2,693,092 | ) | (1,218,108 | ) | ||||
Tax return of capital |
— | — | ||||||
|
|
|||||||
Total distributions |
(2,693,092 | ) | (1,218,108 | ) | ||||
|
|
|||||||
CAPITAL TRANSACTIONS(1) |
| |||||||
Proceeds from shares issued |
36,362,834 | 80,884,377 | ||||||
Cost of shares redeemed |
(16,671,414 | ) | — | |||||
|
|
|||||||
Net Increase (Decrease) from Capital Transactions |
19,691,420 | 80,884,377 | ||||||
|
|
|||||||
Total Increase (Decrease) in Net Assets |
17,393,662 | 82,824,615 | ||||||
|
|
|||||||
NET ASSETS |
| |||||||
Beginning of Period |
$ | 109,123,306 | $ | 26,298,691 | ||||
|
|
|||||||
End of Period |
$ | 126,516,968 | $ | 109,123,306 | ||||
|
|
|||||||
SHARE TRANSACTIONS |
| |||||||
Beginning of period |
4,075,001 | 1,025,001 | ||||||
Shares issued |
— | — | ||||||
Shares issued in-kind |
1,375,000 | 3,050,000 | ||||||
Shares redeemed |
— | — | ||||||
Shares redeemed in-kind |
(625,000 | ) | — | |||||
|
|
|||||||
Shares Outstanding, End of Period |
4,825,001 | 4,075,001 | ||||||
|
|
(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.
90 | FLEXSHARES ANNUAL REPORT |
FlexShares® Trust
FlexShares® US Quality Low Volatility Index Fund |
||||||||||||
For
the period 07/15/19* through 10/31/19 |
||||||||||||
Year ended October 31, |
||||||||||||
2021 | 2020 | |||||||||||
Net asset value, beginning of period |
$ | 40.93 | $ | 40.44 | $ | 40.00 | ||||||
|
|
|||||||||||
PER SHARE |
||||||||||||
Investment Operations |
||||||||||||
Net Investment Income |
0.57 | (a) | 0.64 | (a) | 0.17 | (a) | ||||||
Net Realized and Unrealized Gain (Loss) |
13.69 | 0.38 | 0.35 | |||||||||
|
|
|||||||||||
Total from Operations |
14.26 | 1.02 | 0.52 | |||||||||
|
|
|||||||||||
Distributions |
||||||||||||
Net Investment Income |
(0.59 | ) | (0.53 | ) | (0.08 | ) | ||||||
|
|
|||||||||||
Total from Distributions |
(0.59 | ) | (0.53 | ) | (0.08 | ) | ||||||
|
|
|||||||||||
Net Asset Value, end of period |
$ | 54.60 | $ | 40.93 | $ | 40.44 | ||||||
|
|
|||||||||||
Total Return(b) |
||||||||||||
Net Asset Value(d) |
35.05 | % | 2.63 | % | 1.30 | % | ||||||
Market Value (Unaudited)(e) |
34.99 | % | 2.60 | % | 1.43 | % | ||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||
Ratios to Average Net Assets(c) |
||||||||||||
Expenses |
0.23 | % | 0.23 | % | 0.23 | % | ||||||
Expenses net of reimbursements |
0.22 | % | 0.22 | % | 0.22 | % | ||||||
Net Investment Income Before Reimbursements |
1.17 | % | 1.55 | % | 1.45 | % | ||||||
Net Investment Income Net of Reimbursements |
1.17 | % | 1.56 | % | 1.45 | % | ||||||
Supplemental Data |
||||||||||||
Portfolio Turnover Rate(b)(f) |
43 | % | 47 | % | 9 | % | ||||||
Net assets, end of period (thousands) |
$ | 161,074 | $ | 110,524 | $ | 6,067 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 91 |
Financial Highlights (cont.)
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund |
||||||||||||
For
the period 07/15/19* through 10/31/19 |
||||||||||||
Year ended October 31, |
||||||||||||
2021 | 2020 | |||||||||||
Net asset value, beginning of period |
$ | 23.48 | $ | 25.60 | $ | 25.00 | ||||||
|
|
|||||||||||
PER SHARE |
||||||||||||
Investment Operations |
||||||||||||
Net Investment Income |
0.73 | (a) | 0.64 | (a) | 0.16 | (a) | ||||||
Net Realized and Unrealized Gain (Loss) |
4.43 | (2.22 | ) | 0.53 | ||||||||
|
|
|||||||||||
Total from Operations |
5.16 | (1.58 | ) | 0.69 | ||||||||
|
|
|||||||||||
Distributions |
||||||||||||
Net Investment Income |
(0.72 | ) | (0.54 | ) | (0.09 | ) | ||||||
|
|
|||||||||||
Total from Distributions |
(0.72 | ) | (0.54 | ) | (0.09 | ) | ||||||
|
|
|||||||||||
Net Asset Value, end of period |
$ | 27.92 | $ | 23.48 | $ | 25.60 | ||||||
|
|
|||||||||||
Total Return(b) |
||||||||||||
Net Asset Value(d) |
22.05 | % | (6.24 | )% | 2.76 | % | ||||||
Market Value (Unaudited)(e) |
21.88 | % | (6.06 | )% | 3.04 | % | ||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||
Ratios to Average Net Assets(c) |
||||||||||||
Expenses |
0.33 | % | 0.33 | % | 0.32 | % | ||||||
Expenses net of reimbursements |
0.32 | % | 0.32 | % | 0.32 | % | ||||||
Net Investment Income Before Reimbursements |
2.68 | % | 2.63 | % | 2.21 | % | ||||||
Net Investment Income Net of Reimbursements |
2.68 | % | 2.64 | % | 2.21 | % | ||||||
Supplemental Data |
||||||||||||
Portfolio Turnover Rate(b)(f) |
56 | % | 62 | % | 14 | % | ||||||
Net assets, end of period (thousands) |
$ | 75,371 | $ | 65,747 | $ | 5,120 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
92 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Emerging
Markets Quality Low Volatility Index Fund |
||||||||||||
For the period 07/15/19* through 10/31/19 |
||||||||||||
Year ended October 31, |
||||||||||||
2021 | 2020 | |||||||||||
Net asset value, beginning of period |
$ | 23.95 | $ | 24.94 | $ | 25.00 | ||||||
|
|
|||||||||||
PER SHARE |
||||||||||||
Investment Operations |
||||||||||||
Net Investment Income |
0.69 | (a) | 0.56 | (a) | 0.23 | (a) | ||||||
Net Realized and Unrealized Gain (Loss) |
2.22 | (0.91 | ) | (0.18 | ) | |||||||
|
|
|||||||||||
Total from Operations |
2.91 | (0.35 | ) | 0.05 | ||||||||
|
|
|||||||||||
Distributions |
||||||||||||
Net Investment Income |
(0.45 | ) | (0.64 | ) | (0.11 | ) | ||||||
|
|
|||||||||||
Total from Distributions |
(0.45 | ) | (0.64 | ) | (0.11 | ) | ||||||
|
|
|||||||||||
Net Asset Value, end of period |
$ | 26.41 | $ | 23.95 | $ | 24.94 | ||||||
|
|
|||||||||||
Total Return(b) |
||||||||||||
Net Asset Value(d) |
12.09 | % | (1.41 | )% | 0.19 | % | ||||||
Market Value (Unaudited)(e) |
11.62 | % | (0.59 | )% | 0.31 | % | ||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||
Ratios to Average Net Assets(c) |
||||||||||||
Expenses |
0.41 | % | 0.41 | % | 0.40 | % | ||||||
Expenses net of reimbursements |
0.40 | % | 0.40 | % | 0.40 | % | ||||||
Net Investment Income Before Reimbursements |
2.57 | % | 2.38 | % | 3.18 | % | ||||||
Net Investment Income Net of Reimbursements |
2.58 | % | 2.39 | % | 3.18 | % | ||||||
Supplemental Data |
||||||||||||
Portfolio Turnover Rate(b)(f) |
54 | % | 81 | % | 12 | % | ||||||
Net assets, end of period (thousands) |
$ | 15,844 | $ | 9,578 | $ | 4,989 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 93 |
Financial Highlights (cont.)
FlexShares® Morningstar US Market Factor Tilt Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 121.11 | $ | 119.52 | $ | 110.13 | $ | 107.50 | $ | 88.32 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
2.08 | (a) | 2.10 | (a) | 1.95 | (a) | 2.02 | (a) | 1.74 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
57.80 | 1.60 | 9.33 | 2.59 | 19.13 | |||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
59.88 | 3.70 | 11.28 | 4.61 | 20.87 | |||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(2.02 | ) | (2.11 | ) | (1.89 | ) | (1.98 | ) | (1.69 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(2.02 | ) | (2.11 | ) | (1.89 | ) | (1.98 | ) | (1.69 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 178.97 | $ | 121.11 | $ | 119.52 | $ | 110.13 | $ | 107.50 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
49.68 | % | 3.28 | % | 10.41 | % | 4.22 | % | 23.77 | % | ||||||||||
Market Value (Unaudited)(e) |
49.57 | % | 3.33 | % | 10.41 | % | 4.19 | % | 23.72 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses |
0.26 | % | 0.26 | % | 0.26 | % | 0.25 | % | 0.26 | % | ||||||||||
Expenses net of reimbursements |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.28 | % | 1.78 | % | 1.72 | % | 1.77 | % | 1.73 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.29 | % | 1.79 | % | 1.72 | % | 1.77 | % | 1.74 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
24 | % | 26 | % | 28 | % | 15 | % | 22 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 1,727,019 | $ | 11,747,860 | $ | 1,446,137 | $ | 1,387,665 | $ | 1,150,199 |
See Accompanying Notes to the Financial Statements.
94 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Morningstar Developed Markets
ex-US Factor Tilt Index Fund |
||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 54.24 | $ | 62.67 | $ | 59.76 | $ | 67.51 | $ | 55.62 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.71 | (a) | 1.31 | (a) | 1.85 | (a) | 1.78 | (a) | 1.58 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
19.27 | (7.88 | ) | 2.89 | (7.39 | ) | 11.91 | (k) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
20.98 | (6.57 | ) | 4.74 | (5.61 | ) | 13.49 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.51 | ) | (1.86 | ) | (1.83 | ) | (2.14 | ) | (1.60 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.51 | ) | (1.86 | ) | (1.83 | ) | (2.14 | ) | (1.60 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 73.71 | $ | 54.24 | $ | 62.67 | $ | 59.76 | $ | 67.51 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
38.79 | % | (10.57 | )% | 8.13 | % | (8.61 | )% | 24.58 | %(k) | ||||||||||
Market Value (Unaudited)(e) |
38.95 | % | (10.23 | )% | 8.16 | % | (9.48 | )% | 25.38 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses |
0.40 | % | 0.40 | % | 0.40 | % | 0.39 | % | 0.40 | % | ||||||||||
Expenses net of reimbursements |
0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.42 | % | 2.28 | % | 3.09 | % | 2.65 | % | 2.57 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.42 | % | 2.28 | % | 3.09 | % | 2.65 | % | 2.57 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
29 | % | 21 | % | 25 | % | 34 | % | 22 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 648,638 | $ | 499,016 | $ | 965,142 | $ | 968,096 | $ | 985,608 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 95 |
Financial Highlights (cont.)
FlexShares® Morningstar Emerging
Markets Factor Tilt Index Fund |
||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 48.05 | $ | 50.42 | $ | 47.92 | $ | 57.38 | $ | 47.52 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.51 | (a) | 1.02 | (a) | 1.49 | (a) | 1.46 | (a) | 1.28 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
12.40 | (1.97 | ) | 2.46 | (9.34 | ) | 9.80 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
13.91 | (0.95 | ) | 3.95 | (7.88 | ) | 11.08 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.17 | ) | (1.42 | ) | (1.45 | ) | (1.58 | ) | (1.22 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.17 | ) | (1.42 | ) | (1.45 | ) | (1.58 | ) | (1.22 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 60.79 | $ | 48.05 | $ | 50.42 | $ | 47.92 | $ | 57.38 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
28.95 | % | (1.86 | )% | 8.29 | % | (14.05 | )% | 23.56 | % | ||||||||||
Market Value (Unaudited)(e) |
30.12 | % | (1.44 | )% | 8.08 | % | (15.22 | )% | 23.47 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses |
0.60 | % | 0.60 | % | 0.60 | % | 0.59 | % | 0.60 | % | ||||||||||
Expenses net of reimbursements |
0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.46 | % | 2.13 | % | 2.92 | % | 2.56 | % | 2.44 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.47 | % | 2.14 | % | 2.93 | % | 2.56 | % | 2.44 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
40 | % | 41 | % | 45 | % | 49 | % | 34 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 334,372 | $ | 225,847 | $ | 413,414 | $ | 488,736 | $ | 568,071 |
See Accompanying Notes to the Financial Statements.
96 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® US Quality Large Cap Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 35.48 | $ | 34.69 | $ | 33.44 | $ | 31.83 | $ | 26.15 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.50 | (a) | 0.62 | (a) | 0.68 | (a) | 0.54 | (a) | 0.49 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
14.76 | 0.76 | 1.29 | 1.58 | 5.65 | |||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
15.26 | 1.38 | 1.97 | 2.12 | 6.14 | |||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.49 | ) | (0.59 | ) | (0.72 | ) | (0.51 | ) | (0.46 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.49 | ) | (0.59 | ) | (0.72 | ) | (0.51 | ) | (0.46 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 50.25 | $ | 35.48 | $ | 34.69 | $ | 33.44 | $ | 31.83 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
43.21 | % | 4.13 | % | 6.04 | % | 6.63 | % | 23.65 | % | ||||||||||
Market Value (Unaudited)(e) |
43.09 | % | 4.16 | % | 6.01 | % | 6.30 | % | 24.08 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses |
0.33 | % | 0.33 | % | 0.33 | % | 0.33 | % | 0.34 | % | ||||||||||
Expenses net of reimbursements |
0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.11 | % | 1.77 | % | 2.04 | % | 1.56 | % | 1.65 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.11 | % | 1.77 | % | 2.05 | % | 1.57 | % | 1.67 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
30 | % | 48 | % | 69 | % | 94 | % | 64 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 144,475 | $ | 71,842 | $ | 51,171 | $ | 61,859 | $ | 27,055 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 97 |
Financial Highlights (cont.)
FlexShares® STOXX® US ESG Select Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 79.16 | $ | 72.29 | $ | 64.33 | $ | 60.49 | $ | 49.96 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.26 | (a) | 1.27 | (a) | 1.21 | (a) | 1.09 | (a) | 1.05 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
33.50 | 6.81 | 7.83 | 3.84 | 10.45 | |||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
34.76 | 8.08 | 9.04 | 4.93 | 11.50 | |||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.19 | ) | (1.21 | ) | (1.08 | ) | (1.09 | ) | (0.97 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.19 | ) | (1.21 | ) | (1.08 | ) | (1.09 | ) | (0.97 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 112.73 | $ | 79.16 | $ | 72.29 | $ | 64.33 | $ | 60.49 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
44.15 | % | 11.40 | % | 14.21 | % | 8.13 | % | 23.19 | % | ||||||||||
Market Value (Unaudited)(e) |
44.12 | % | 11.45 | % | 14.26 | % | 7.97 | % | 23.30 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses |
0.33 | % | 0.33 | % | 0.33 | % | 0.33 | % | 0.35 | % | ||||||||||
Expenses net of reimbursements |
0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.25 | % | 1.67 | % | 1.78 | % | 1.66 | % | 1.82 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.26 | % | 1.68 | % | 1.79 | % | 1.67 | % | 1.85 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
40 | % | 66 | % | 75 | % | 110 | % | 67 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 191,643 | $ | 89,052 | $ | 56,024 | $ | 28,946 | $ | 13,610 |
See Accompanying Notes to the Financial Statements.
98 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® STOXX® Global ESG Select Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 106.02 | $ | 101.77 | $ | 91.61 | $ | 91.97 | $ | 75.52 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
2.03 | (a) | 1.72 | (a) | 2.05 | (a) | 1.95 | (a) | 1.56 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
42.38 | 4.26 | 10.12 | (0.61 | ) | 16.67 | (m) | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
44.41 | 5.98 | 12.17 | 1.34 | 18.23 | |||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.86 | ) | (1.73 | ) | (2.01 | ) | (1.70 | ) | (1.78 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.86 | ) | (1.73 | ) | (2.01 | ) | (1.70 | ) | (1.78 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 148.57 | $ | 106.02 | $ | 101.77 | $ | 91.61 | $ | 91.97 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
42.10 | % | 6.03 | % | 13.49 | % | 1.38 | % | 24.37 | %(m) | ||||||||||
Market Value (Unaudited)(e) |
41.84 | % | 6.46 | % | 12.96 | % | 1.71 | % | 24.55 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.45 | % | ||||||||||
Expenses net of reimbursements |
0.42 | % | 0.42 | % | 0.42 | % | 0.42 | % | 0.42 | % | ||||||||||
Net Investment Income Before Reimbursements |
1.50 | % | 1.66 | % | 2.15 | % | 2.03 | % | 1.81 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.51 | % | 1.66 | % | 2.16 | % | 2.04 | % | 1.83 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
48 | % | 58 | % | 66 | % | 78 | % | 64 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 185,717 | $ | 111,323 | $ | 91,590 | $ | 73,284 | $ | 32,189 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 99 |
Financial Highlights (cont.)
FlexShares® ESG & Climate US Large Cap Core Index Fund |
||||
For
the period 09/20/21* through 10/31/21 |
||||
Net asset value, beginning of period |
$ | 50.00 | ||
|
|
|||
PER SHARE |
||||
Investment Operations |
||||
Net Investment Income |
0.06 | (a) | ||
Net Realized and Unrealized Gain (Loss) |
3.33 | |||
|
|
|||
Total from Operations |
3.39 | |||
|
|
|||
Distributions |
||||
Net Investment Income |
— | |||
|
|
|||
Total from Distributions |
— | |||
|
|
|||
Net Asset Value, end of period |
$ | 53.39 | ||
|
|
|||
Total Return(b) |
||||
Net Asset Value(d) |
6.78 | % | ||
Market Value (Unaudited)(e) |
6.76 | % | ||
RATIOS/SUPPLEMENT DATA |
||||
Ratios to Average Net Assets(c) |
| |||
Expenses |
0.09 | % | ||
Expenses net of reimbursements |
0.09 | % | ||
Net Investment Income Before Reimbursements |
0.96 | % | ||
Net Investment Income Net of Reimbursements |
0.96 | % | ||
Supplemental Data |
||||
Portfolio Turnover Rate(b)(f) |
— | %(l) | ||
Net assets, end of period (thousands) |
$ | 2,669 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
100 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® ESG & Climate Developed Markets ex-US Core Index Fund |
||||
For
the period 09/20/21* through 10/31/21 |
||||
Net asset value, beginning of period |
$ | 50.00 | ||
|
|
|||
PER SHARE |
||||
Investment Operations |
||||
Net Investment Income |
0.16 | (a) | ||
Net Realized and Unrealized Gain (Loss) |
1.03 | |||
|
|
|||
Total from Operations |
1.19 | |||
|
|
|||
Distributions |
||||
Net Investment Income |
— | |||
|
|
|||
Total from Distributions |
— | |||
|
|
|||
Net Asset Value, end of period |
$ | 51.19 | ||
|
|
|||
Total Return(b) |
||||
Net Asset Value(d) |
2.38 | % | ||
Market Value (Unaudited)(e) |
2.82 | % | ||
RATIOS/SUPPLEMENT DATA |
||||
Ratios to Average Net Assets(c) |
| |||
Expenses |
0.12 | % | ||
Expenses net of reimbursements |
0.12 | % | ||
Net Investment Income Before Reimbursements |
2.72 | % | ||
Net Investment Income Net of Reimbursements |
2.72 | % | ||
Supplemental Data |
||||
Portfolio Turnover Rate(b)(f) |
— | %(l) | ||
Net assets, end of period (thousands) |
$ | 5,119 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 101 |
Financial Highlights (cont.)
FlexShares® Morningstar Global
Upstream Natural Resources Index Fund |
||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 26.71 | $ | 31.40 | $ | 31.51 | $ | 31.59 | $ | 27.40 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.44 | (a) | 0.89 | (a) | 1.08 | (a) | 0.91 | (a) | 0.70 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
11.72 | (4.65 | ) | (0.09 | ) | (0.13 | ) | 4.13 | (n) | |||||||||||
|
|
|||||||||||||||||||
Total from Operations |
13.16 | (3.76 | ) | 0.99 | 0.78 | 4.83 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.21 | ) | (0.93 | ) | (1.10 | ) | (0.86 | ) | (0.64 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.21 | ) | (0.93 | ) | (1.10 | ) | (0.86 | ) | (0.64 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 38.66 | $ | 26.71 | $ | 31.40 | $ | 31.51 | $ | 31.59 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
49.70 | % | (11.87 | )% | 3.16 | % | 2.33 | % | 17.81 | %(n) | ||||||||||
Market Value (Unaudited)(e) |
49.58 | % | (11.46 | )% | 3.06 | % | 2.01 | % | 17.97 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.47 | % | 0.47 | % | 0.47 | % | 0.46 | % | 0.47 | % | ||||||||||
Expenses net of reimbursements |
0.46 | % | 0.46 | % | 0.46 | % | 0.46 | % | 0.46 | % | ||||||||||
Net Investment Income Before Reimbursements |
3.95 | % | 3.03 | % | 3.40 | % | 2.72 | % | 2.36 | % | ||||||||||
Net Investment Income Net of Reimbursements |
3.95 | % | 3.04 | % | 3.41 | % | 2.72 | % | 2.36 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
28 | % | 29 | % | 24 | % | 30 | % | 18 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 6,052,710 | $ | 2,924,726 | $ | 5,510,201 | $ | 5,435,783 | $ | 4,760,397 |
See Accompanying Notes to the Financial Statements.
102 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® STOXX® Global Broad Infrastructure Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 48.10 | $ | 52.56 | $ | 45.09 | $ | 47.85 | $ | 43.49 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.38 | (a) | 1.25 | (a) | 1.35 | (a) | 1.36 | (a) | 1.37 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
9.57 | (4.53 | ) | 7.34 | (2.71 | ) | 4.40 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
10.95 | (3.28 | ) | 8.69 | (1.35 | ) | 5.77 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.32 | ) | (1.18 | ) | (1.22 | ) | (1.41 | ) | (1.41 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.32 | ) | (1.18 | ) | (1.22 | ) | (1.41 | ) | (1.41 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 57.73 | $ | 48.10 | $ | 52.56 | $ | 45.09 | $ | 47.85 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
22.85 | % | (6.23 | )% | 19.52 | % | (2.90 | )% | 13.44 | % | ||||||||||
Market Value (Unaudited)(e) |
22.51 | % | (5.93 | )% | 19.99 | % | (3.25 | )% | 13.23 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.48 | % | 0.48 | % | 0.48 | % | 0.47 | % | 0.48 | % | ||||||||||
Expenses net of reimbursements |
0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.45 | % | 2.51 | % | 2.73 | % | 2.88 | % | 2.97 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.45 | % | 2.52 | % | 2.74 | % | 2.89 | % | 2.98 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
13 | % | 13 | % | 12 | % | 13 | % | 12 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 2,643,906 | $ | 1,856,596 | $ | 1,477,030 | $ | 773,363 | $ | 875,628 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 103 |
Financial Highlights (cont.)
FlexShares® Global Quality Real Estate Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 50.88 | $ | 66.60 | $ | 57.96 | $ | 62.02 | $ | 57.12 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.38 | (a) | 1.43 | (a) | 1.76 | (a) | 1.80 | (a) | 0.99 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
19.13 | (14.62 | ) | 8.68 | (3.99 | ) | 5.54 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
20.51 | (13.19 | ) | 10.44 | (2.19 | ) | 6.53 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.04 | ) | (2.50 | ) | (1.80 | ) | (1.87 | ) | (1.63 | ) | ||||||||||
Tax Return of Capital |
— | (0.03 | ) | — | — | — | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.04 | ) | (2.53 | ) | (1.80 | ) | (1.87 | ) | (1.63 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 70.35 | $ | 50.88 | $ | 66.60 | $ | 57.96 | $ | 62.02 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
40.58 | % | (20.29 | )% | 18.37 | % | (3.69 | )% | 11.71 | % | ||||||||||
Market Value (Unaudited)(e) |
40.98 | % | (20.40 | )% | 18.65 | % | (3.95 | )% | 11.71 | % | ||||||||||
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 |
2.16 | % | 2.53 | % | 2.80 | % | 2.92 | % | 1.67 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.17 | % | 2.54 | % | 2.81 | % | 2.92 | % | 1.67 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
52 | % | 56 | % | 53 | % | 61 | % | 64 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 418,597 | $ | 264,574 | $ | 376,264 | $ | 275,332 | $ | 244,970 |
See Accompanying Notes to the Financial Statements.
104 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Real Assets Allocation Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 25.72 | $ | 30.30 | $ | 26.45 | $ | 28.08 | $ | 25.63 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.83 | (a) | 0.86 | (a) | 0.76 | (a) | 0.80 | (a) | 0.66 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
7.78 | (4.58 | ) | 3.85 | (1.64 | ) | 2.54 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
8.61 | (3.72 | ) | 4.61 | (0.84 | ) | 3.20 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.66 | ) | (0.86 | ) | (0.76 | ) | (0.79 | ) | (0.75 | ) | ||||||||||
From Net Realized Gains |
— | — | — | 0.00 | (h) | — | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.66 | ) | (0.86 | ) | (0.76 | ) | (0.79 | ) | (0.75 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 33.67 | $ | 25.72 | $ | 30.30 | $ | 26.45 | $ | 28.08 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
33.66 | % | (12.45 | )% | 17.69 | % | (3.09 | )% | 12.73 | % | ||||||||||
Market Value (Unaudited)(e) |
33.74 | % | (12.54 | )% | 17.72 | % | (3.32 | )% | 13.05 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.58 | %(i) | 0.58 | %(i) | 0.58 | %(i) | 0.59 | %(i) | 0.65 | %(i) | ||||||||||
Expenses net of reimbursements |
0.12 | %(i) | 0.11 | %(i) | 0.11 | %(i) | 0.11 | %(i) | 0.11 | %(i) | ||||||||||
Net Investment Income Before Reimbursements |
2.07 | % | 2.65 | % | 2.22 | % | 2.39 | % | 1.88 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.53 | % | 3.11 | % | 2.69 | % | 2.87 | % | 2.42 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
40 | % | 14 | % | 4 | % | 5 | % | 11 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 30,300 | $ | 4,502 | $ | 11,361 | $ | 13,887 | $ | 6,318 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 105 |
Financial Highlights (cont.)
FlexShares® Quality Dividend Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 43.40 | $ | 46.33 | $ | 44.53 | $ | 42.57 | $ | 37.11 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.16 | (a) | 1.24 | (a) | 1.24 | (a) | 1.20 | (a) | 1.23 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
14.89 | (2.67 | ) | 2.29 | 1.98 | 5.43 | ||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
16.05 | (1.43 | ) | 3.53 | 3.18 | 6.66 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.10 | ) | (1.25 | ) | (1.19 | ) | (1.22 | ) | (1.20 | ) | ||||||||||
From Net Realized Gains |
— | (0.25 | ) | (0.54 | ) | — | — | |||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.10 | ) | (1.50 | ) | (1.73 | ) | (1.22 | ) | (1.20 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 58.35 | $ | 43.40 | $ | 46.33 | $ | 44.53 | $ | 42.57 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
37.27 | % | (2.98 | )% | 8.45 | % | 7.42 | % | 18.10 | % | ||||||||||
Market Value (Unaudited)(e) |
37.20 | % | (2.98 | )% | 8.52 | % | 7.40 | % | 18.03 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.38 | % | 0.38 | % | 0.38 | % | 0.37 | % | 0.38 | % | ||||||||||
Expenses net of reimbursements |
0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | ||||||||||
Net Investment Income Before Reimbursements |
2.16 | % | 2.79 | % | 2.80 | % | 2.64 | % | 3.00 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.16 | % | 2.79 | % | 2.81 | % | 2.64 | % | 3.00 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
51 | % | 75 | % | 95 | % | 76 | % | 89 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 1,642,545 | $ | 1,265,177 | $ | 1,707,344 | $ | 1,759,108 | $ | 1,815,665 |
See Accompanying Notes to the Financial Statements.
106 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Quality Dividend Defensive Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 42.61 | $ | 46.25 | $ | 44.46 | $ | 42.04 | $ | 36.82 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.09 | (a) | 1.21 | (a) | 1.22 | (a) | 1.21 | (a) | 1.18 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
13.39 | (3.28 | ) | 3.35 | 2.45 | 5.18 | ||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
14.48 | (2.07 | ) | 4.57 | 3.66 | 6.36 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.08 | ) | (1.21 | ) | (1.14 | ) | (1.24 | ) | (1.14 | ) | ||||||||||
From Net Realized Gains |
— | (0.36 | ) | (1.64 | ) | — | — | |||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.08 | ) | (1.57 | ) | (2.78 | ) | (1.24 | ) | (1.14 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 56.01 | $ | 42.61 | $ | 46.25 | $ | 44.46 | $ | 42.04 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
34.28 | % | (4.45 | )% | 11.40 | % | 8.69 | % | 17.44 | % | ||||||||||
Market Value (Unaudited)(e) |
34.19 | % | (4.43 | )% | 11.40 | % | 8.74 | % | 17.41 | % | ||||||||||
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 |
2.10 | % | 2.77 | % | 2.76 | % | 2.70 | % | 2.94 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.11 | % | 2.77 | % | 2.76 | % | 2.71 | % | 2.95 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
57 | % | 76 | % | 91 | % | 94 | % | 74 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 448,058 | $ | 411,173 | $ | 450,963 | $ | 320,091 | $ | 313,167 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 107 |
Financial Highlights (cont.)
FlexShares® Quality Dividend Dynamic Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 43.94 | $ | 45.49 | $ | 42.20 | $ | 41.84 | $ | 35.32 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.22 | (a) | 1.33 | (a) | 1.21 | (a) | 1.15 | (a) | 1.19 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
18.57 | (1.21 | ) | 3.26 | 0.40 | 6.45 | ||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
19.79 | 0.12 | 4.47 | 1.55 | 7.64 | |||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.14 | ) | (1.67 | ) | (1.18 | ) | (1.19 | ) | (1.12 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.14 | ) | (1.67 | ) | (1.18 | ) | (1.19 | ) | (1.12 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 62.59 | $ | 43.94 | $ | 45.49 | $ | 42.20 | $ | 41.84 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
45.38 | % | 0.86 | % | 10.86 | % | 3.59 | % | 21.81 | % | ||||||||||
Market Value (Unaudited)(e) |
45.32 | % | 0.91 | % | 10.89 | % | 3.67 | % | 21.59 | % | ||||||||||
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 |
2.14 | % | 2.93 | % | 2.81 | % | 2.61 | % | 2.99 | % | ||||||||||
Net Investment Income Net of Reimbursements |
2.15 | % | 2.94 | % | 2.82 | % | 2.62 | % | 3.00 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
53 | % | 77 | % | 77 | % | 77 | % | 63 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 21,905 | $ | 13,181 | $ | 52,308 | $ | 44,305 | $ | 58,571 |
See Accompanying Notes to the Financial Statements.
108 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® International Quality Dividend Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 20.15 | $ | 23.06 | $ | 22.37 | $ | 26.27 | $ | 22.45 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.97 | (a) | 0.79 | (a) | 1.13 | (a) | 1.22 | (a) | 1.06 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
5.55 | (2.86 | ) | 0.70 | (3.86 | ) | 3.69 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
6.52 | (2.07 | ) | 1.83 | (2.64 | ) | 4.75 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.90 | ) | (0.84 | ) | (1.14 | ) | (1.26 | ) | (0.93 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.90 | ) | (0.84 | ) | (1.14 | ) | (1.26 | ) | (0.93 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 25.77 | $ | 20.15 | $ | 23.06 | $ | 22.37 | $ | 26.27 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
32.42 | % | (8.94 | )% | 8.41 | % | (10.48 | )% | 21.50 | % | ||||||||||
Market Value (Unaudited)(e) |
32.85 | % | (8.93 | )% | 9.09 | % | (11.30 | )% | 21.80 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
| |||||||||||||||||||
Expenses |
0.48 | % | 0.48 | % | 0.48 | % | 0.47 | % | 0.48 | % | ||||||||||
Expenses net of reimbursements |
0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % | ||||||||||
Net Investment Income Before Reimbursements |
3.80 | % | 3.68 | % | 4.98 | % | 4.77 | % | 4.27 | % | ||||||||||
Net Investment Income Net of Reimbursements |
3.81 | % | 3.68 | % | 4.98 | % | 4.78 | % | 4.28 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
68 | % | 74 | % | 71 | % | 71 | % | 69 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 616,007 | $ | 453,477 | $ | 774,685 | $ | 765,167 | $ | 979,701 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 109 |
Financial Highlights (cont.)
FlexShares® International Quality
Dividend Defensive Index Fund |
||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 19.16 | $ | 21.87 | $ | 21.39 | $ | 25.06 | $ | 22.16 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.93 | (a) | 0.74 | (a) | 1.09 | (a) | 1.14 | (a) | 0.99 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
4.62 | (2.70 | ) | 0.51 | (3.54 | ) | 2.81 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
5.55 | (1.96 | ) | 1.60 | (2.40 | ) | 3.80 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.89 | ) | (0.75 | ) | (1.12 | ) | (1.27 | ) | (0.90 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.89 | ) | (0.75 | ) | (1.12 | ) | (1.27 | ) | (0.90 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 23.82 | $ | 19.16 | $ | 21.87 | $ | 21.39 | $ | 25.06 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
29.03 | % | (8.92 | )% | 7.66 | % | (10.03 | )% | 17.45 | % | ||||||||||
Market Value (Unaudited)(e) |
28.97 | % | (8.88 | )% | 8.12 | % | (10.91 | )% | 17.69 | % | ||||||||||
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 |
3.91 | % | 3.65 | % | 5.02 | % | 4.68 | % | 4.18 | % | ||||||||||
Net Investment Income Net of Reimbursements |
3.92 | % | 3.66 | % | 5.03 | % | 4.68 | % | 4.19 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
65 | % | 75 | % | 63 | % | 69 | % | 72 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 71,459 | $ | 59,404 | $ | 78,719 | $ | 87,703 | $ | 95,217 |
See Accompanying Notes to the Financial Statements.
110 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® International Quality
Dividend Dynamic Index Fund |
||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 22.38 | $ | 24.94 | $ | 23.51 | $ | 27.82 | $ | 23.47 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.28 | (a) | 0.70 | (a) | 1.05 | (a) | 1.32 | (a) | 1.11 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
7.63 | (2.45 | ) | 1.52 | (4.34 | ) | 4.08 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
8.91 | (1.75 | ) | 2.57 | (3.02 | ) | 5.19 | |||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.90 | ) | (0.81 | ) | (1.14 | ) | (1.29 | ) | (0.84 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.90 | ) | (0.81 | ) | (1.14 | ) | (1.29 | ) | (0.84 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 30.39 | $ | 22.38 | $ | 24.94 | $ | 23.51 | $ | 27.82 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
39.87 | % | (6.99 | )% | 11.30 | % | (11.34 | )% | 22.37 | % | ||||||||||
Market Value (Unaudited)(e) |
40.37 | % | (7.03 | )% | 12.23 | % | (12.11 | )% | 22.91 | % | ||||||||||
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 |
4.24 | % | 2.90 | % | 4.36 | % | 4.83 | % | 4.19 | % | ||||||||||
Net Investment Income Net of Reimbursements |
4.25 | % | 2.91 | % | 4.37 | % | 4.83 | % | 4.20 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
72 | % | 85 | % | 88 | % | 75 | % | 76 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 75,975 | $ | 22,376 | $ | 47,391 | $ | 63,481 | $ | 91,796 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 111 |
Financial Highlights (cont.)
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 25.73 | $ | 24.58 | $ | 23.81 | $ | 24.60 | $ | 24.82 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.09 | (a) | 0.33 | (a) | 0.46 | (a) | 0.68 | (a) | 0.37 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
0.68 | 1.09 | 0.79 | (0.78 | ) | (0.27 | ) | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
1.77 | 1.42 | 1.25 | (0.10 | ) | 0.10 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.12 | ) | (0.27 | ) | (0.48 | ) | (0.69 | ) | (0.32 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.12 | ) | (0.27 | ) | (0.48 | ) | (0.69 | ) | (0.32 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 26.38 | $ | 25.73 | $ | 24.58 | $ | 23.81 | $ | 24.60 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
6.95 | % | 5.81 | % | 5.30 | % | (0.41 | )% | 0.42 | % | ||||||||||
Market Value (Unaudited)(e) |
6.95 | % | 5.85 | % | 5.35 | % | (0.49 | )% | 0.46 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses |
0.19 | % | 0.19 | % | 0.19 | % | 0.18 | % | 0.21 | % | ||||||||||
Expenses net of reimbursements |
0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.20 | % | ||||||||||
Net Investment Income Before Reimbursements |
4.14 | % | 1.33 | % | 1.89 | % | 2.79 | % | 1.49 | % | ||||||||||
Net Investment Income Net of Reimbursements |
4.15 | % | 1.33 | % | 1.89 | % | 2.80 | % | 1.50 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
53 | % | 71 | % | 52 | % | 85 | % | 134 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 1,437,584 | $ | 1,429,491 | $ | 1,178,722 | $ | 1,641,610 | $ | 2,113,130 |
See Accompanying Notes to the Financial Statements.
112 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 27.34 | $ | 25.50 | $ | 23.95 | $ | 25.06 | $ | 25.45 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.16 | (a) | 0.36 | (a) | 0.44 | (a) | 0.71 | (a) | 0.47 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
0.70 | 1.76 | 1.59 | (1.08 | ) | (0.45 | ) | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
1.86 | 2.12 | 2.03 | (0.37 | ) | 0.02 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.18 | ) | (0.28 | ) | (0.48 | ) | (0.74 | ) | (0.41 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.18 | ) | (0.28 | ) | (0.48 | ) | (0.74 | ) | (0.41 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 28.02 | $ | 27.34 | $ | 25.50 | $ | 23.95 | $ | 25.06 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
6.88 | % | 8.39 | % | 8.53 | % | (1.51 | )% | 0.08 | % | ||||||||||
Market Value (Unaudited)(e) |
6.96 | % | 8.47 | % | 8.45 | % | (1.51 | )% | 0.08 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses |
0.19 | % | 0.19 | % | 0.19 | % | 0.18 | % | 0.21 | % | ||||||||||
Expenses net of reimbursements |
0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.20 | % | ||||||||||
Net Investment Income Before Reimbursements |
4.17 | % | 1.35 | % | 1.77 | % | 2.88 | % | 1.86 | % | ||||||||||
Net Investment Income Net of Reimbursements |
4.17 | % | 1.35 | % | 1.78 | % | 2.88 | % | 1.87 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
46 | % | 66 | % | 41 | % | 65 | % | 87 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 714,479 | $ | 596,095 | $ | 557,185 | $ | 904,027 | $ | 819,372 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 113 |
Financial Highlights (cont.)
FlexShares® Disciplined Duration MBS Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 24.10 | $ | 23.55 | $ | 22.74 | $ | 23.86 | $ | 24.74 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.09 | (a) | 0.37 | (a) | 0.61 | (a) | 0.49 | (a) | 0.39 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(0.16 | ) | 0.85 | 1.03 | (0.88 | ) | (0.50 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
(0.07 | ) | 1.22 | 1.64 | (0.39 | ) | (0.11 | ) | ||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.61 | ) | (0.67 | ) | (0.83 | ) | (0.73 | ) | (0.77 | ) | ||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.61 | ) | (0.67 | ) | (0.83 | ) | (0.73 | ) | (0.77 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 23.42 | $ | 24.10 | $ | 23.55 | $ | 22.74 | $ | 23.86 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
(0.28 | )% | 5.19 | % | 7.36 | % | (1.65 | )% | (0.44 | )% | ||||||||||
Market Value (Unaudited)(e) |
(0.11 | )% | 5.19 | % | 7.07 | % | (1.31 | )% | (0.53 | )% | ||||||||||
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 |
0.35 | % | 1.54 | % | 2.64 | % | 2.09 | % | 1.61 | % | ||||||||||
Net Investment Income Net of Reimbursements |
0.36 | % | 1.54 | % | 2.65 | % | 2.10 | % | 1.62 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
476 | % | 175 | % | 61 | % | 160 | % | 61 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 111,243 | $ | 100,020 | $ | 35,330 | $ | 71,628 | $ | 38,183 |
See Accompanying Notes to the Financial Statements.
114 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Credit-Scored US Corporate Bond Index Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 54.70 | $ | 52.58 | $ | 48.59 | $ | 50.98 | $ | 51.49 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.91 | (a) | 1.32 | (a) | 1.63 | (a) | 1.40 | (a) | 1.26 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(0.51 | ) | 2.39 | 3.94 | (2.43 | ) | (0.34 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
0.40 | 3.71 | 5.57 | (1.03 | ) | 0.92 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.96 | ) | (1.37 | ) | (1.58 | ) | (1.36 | ) | (1.23 | ) | ||||||||||
From Net Realized Gains |
(0.62 | ) | (0.22 | ) | — | — | (0.20 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(1.58 | ) | (1.59 | ) | (1.58 | ) | (1.36 | ) | (1.43 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 53.52 | $ | 54.70 | $ | 52.58 | $ | 48.59 | $ | 50.98 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
0.70 | % | 7.20 | % | 11.66 | % | (2.05 | )% | 1.85 | % | ||||||||||
Market Value (Unaudited)(e) |
0.68 | % | 7.22 | % | 11.56 | % | (2.23 | )% | 1.99 | % | ||||||||||
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 |
1.68 | % | 2.46 | % | 3.20 | % | 2.83 | % | 2.48 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.69 | % | 2.46 | % | 3.21 | % | 2.84 | % | 2.49 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
53 | % | 62 | % | 65 | % | 76 | % | 65 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 315,740 | $ | 202,397 | $ | 97,275 | $ | 60,736 | $ | 50,982 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 115 |
Financial Highlights (cont.)
FlexShares® Credit-Scored US Long
Corporate Bond Index Fund |
||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 61.81 | $ | 57.84 | $ | 48.04 | $ | 53.88 | $ | 53.83 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
1.90 | (a) | 1.99 | (a) | 2.11 | (a) | 2.07 | (a) | 2.06 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
1.22 | 3.90 | 9.89 | (5.87 | ) | 0.74 | ||||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
3.12 | 5.89 | 12.00 | (3.80 | ) | 2.80 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(1.88 | ) | (1.92 | ) | (2.20 | ) | (2.04 | ) | (2.07 | ) | ||||||||||
From Net Realized Gains |
(2.20 | ) | — | — | — | (0.68 | ) | |||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(4.08 | ) | (1.92 | ) | (2.20 | ) | (2.04 | ) | (2.75 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 60.85 | $ | 61.81 | $ | 57.84 | $ | 48.04 | $ | 53.88 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
5.14 | % | 10.34 | % | 25.57 | % | (7.24 | )% | 5.58 | % | ||||||||||
Market Value (Unaudited)(e) |
5.23 | % | 10.57 | % | 25.51 | % | (7.86 | )% | 4.25 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Expenses |
0.23 | % | 0.23 | % | 0.23 | % | 0.23 | % | 0.24 | % | ||||||||||
Expenses net of reimbursements |
0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | ||||||||||
Net Investment Income Before Reimbursements |
3.13 | % | 3.27 | % | 4.06 | % | 4.05 | % | 3.92 | % | ||||||||||
Net Investment Income Net of Reimbursements |
3.14 | % | 3.28 | % | 4.07 | % | 4.06 | % | 3.94 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
88 | % | 74 | % | 44 | % | 93 | % | 91 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 60,855 | $ | 46,360 | $ | 17,352 | $ | 26,424 | $ | 18,858 |
See Accompanying Notes to the Financial Statements.
116 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® High Yield
Value-Scored Bond Index Fund |
||||||||||||||||
For
the period 07/17/18* through 10/31/18 |
||||||||||||||||
Year ended October 31, | ||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||
Net asset value, beginning of period |
$ | 46.25 | $ | 47.85 | $ | 48.84 | $ | 50.00 | ||||||||
|
|
|||||||||||||||
PER SHARE |
||||||||||||||||
Investment Operations |
||||||||||||||||
Net Investment Income |
2.67 | (a) | 3.12 | (a) | 2.67 | (a) | 1.68 | (a) | ||||||||
Net Realized and Unrealized Gain (Loss) |
3.42 | (1.77 | ) | 0.78 | (1.60 | ) | ||||||||||
|
|
|||||||||||||||
Total from Operations |
6.09 | 1.35 | 3.45 | 0.08 | ||||||||||||
|
|
|||||||||||||||
Distributions |
||||||||||||||||
Net Investment Income |
(2.76 | ) | (2.95 | ) | (3.57 | ) | (1.24 | ) | ||||||||
Tax Return of Capital |
— | — | (0.87 | ) | — | |||||||||||
|
|
|||||||||||||||
Total from Distributions |
(2.76 | ) | (2.95 | ) | (4.44 | ) | (1.24 | ) | ||||||||
|
|
|||||||||||||||
Net Asset Value, end of period |
$ | 49.58 | $ | 46.25 | $ | 47.85 | $ | 48.84 | ||||||||
|
|
|||||||||||||||
Total Return(b) |
||||||||||||||||
Net Asset Value(d) |
13.38 | % | 3.07 | % | 7.48 | % | 0.13 | % | ||||||||
Market Value (Unaudited)(e) |
13.20 | % | 3.12 | % | 7.64 | % | 0.13 | % | ||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||
Ratios to Average Net Assets(c) |
||||||||||||||||
Expenses |
0.38 | % | 0.38 | % | 0.38 | % | 0.38 | % | ||||||||
Expenses net of reimbursements |
0.37 | % | 0.37 | % | 0.37 | % | 0.37 | % | ||||||||
Net Investment Income Before Reimbursements |
5.40 | % | 6.78 | % | 5.56 | % | 11.56 | % | ||||||||
Net Investment Income Net of Reimbursements |
5.40 | % | 6.78 | % | 5.57 | % | 11.57 | % | ||||||||
Supplemental Data |
||||||||||||||||
Portfolio Turnover Rate(b)(f) |
128 | % | 95 | % | 44 | % | 18 | % | ||||||||
Net assets, end of period (thousands) |
$ | 575,184 | $ | 189,623 | $ | 100,480 | $ | 48,845 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 117 |
Financial Highlights (cont.)
FlexShares® ESG & Climate High Yield Corporate Core Index Fund |
||||
For
the period 09/20/21* through 10/31/21 |
||||
Net asset value, beginning of period |
$ | 50.00 | ||
|
|
|||
PER SHARE |
||||
Investment Operations |
||||
Net Investment Income |
0.21 | (a) | ||
Net Realized and Unrealized Gain (Loss) |
(0.44 | ) | ||
|
|
|||
Total from Operations |
(0.23 | ) | ||
|
|
|||
Distributions |
||||
Net Investment Income |
— | |||
|
|
|||
Total from Distributions |
— | |||
|
|
|||
Net Asset Value, end of period |
$ | 49.77 | ||
|
|
|||
Total Return(b) |
||||
Net Asset Value(d) |
(0.50 | )% | ||
Market Value (Unaudited)(e) |
(0.50 | )% | ||
RATIOS/SUPPLEMENT DATA |
||||
Ratios to Average Net Assets(c) |
| |||
Expenses |
0.23 | % | ||
Expenses net of reimbursements |
0.23 | % | ||
Net Investment Income Before Reimbursements |
3.64 | % | ||
Net Investment Income Net of Reimbursements |
3.64 | % | ||
Supplemental Data |
||||
Portfolio Turnover Rate(b)(f) |
8 | % | ||
Net assets, end of period (thousands) |
$ | 49,767 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
118 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® ESG & Climate Investment Grade Corporate Core Index Fund |
||||
For
the period 09/20/21* through 10/31/21 |
||||
Net asset value, beginning of period |
$ | 50.00 | ||
|
|
|||
PER SHARE |
||||
Investment Operations |
||||
Net Investment Income |
0.10 | (a) | ||
Net Realized and Unrealized Gain (Loss) |
(0.75 | ) | ||
|
|
|||
Total from Operations |
(0.65 | ) | ||
|
|
|||
Distributions |
||||
Net Investment Income |
— | |||
|
|
|||
Total from Distributions |
— | |||
|
|
|||
Net Asset Value, end of period |
$ | 49.35 | ||
|
|
|||
Total Return(b) |
||||
Net Asset Value(d) |
(1.32 | )% | ||
Market Value (Unaudited)(e) |
(1.30 | )% | ||
RATIOS/SUPPLEMENT DATA |
||||
Ratios to Average Net Assets(c) |
| |||
Expenses |
0.12 | % | ||
Expenses net of reimbursements |
0.12 | % | ||
Net Investment Income Before Reimbursements |
1.81 | % | ||
Net Investment Income Net of Reimbursements |
1.81 | % | ||
Supplemental Data |
||||
Portfolio Turnover Rate(b)(f) |
8 | % | ||
Net assets, end of period (thousands) |
$ | 49,347 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 119 |
Financial Highlights (cont.)
FlexShares® Ready Access Variable Income Fund | ||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of period |
$ | 76.29 | $ | 75.89 | $ | 75.48 | $ | 75.61 | $ | 75.56 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.48 | (a) | 1.07 | (a) | 1.98 | (a) | 1.58 | (a) | 0.89 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(0.22 | ) | 0.57 | 0.41 | (0.24 | ) | 0.00 | (h) | ||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
0.26 | 1.64 | 2.39 | 1.34 | 0.89 | |||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.52 | ) | (1.23 | ) | (1.98 | ) | (1.47 | ) | (0.84 | ) | ||||||||||
From Net Realized Gains |
(0.02 | ) | (0.01 | ) | — | — | — | |||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.54 | ) | (1.24 | ) | (1.98 | ) | (1.47 | ) | (0.84 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 76.01 | $ | 76.29 | $ | 75.89 | $ | 75.48 | $ | 75.61 | ||||||||||
|
|
|||||||||||||||||||
Total Return |
||||||||||||||||||||
Net Asset Value(d) |
0.34 | % | 2.18 | % | 3.21 | % | 1.80 | % | 1.18 | % | ||||||||||
Market Value (Unaudited)(e) |
0.35 | % | 2.17 | % | 3.18 | % | 1.91 | % | 1.06 | % | ||||||||||
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 |
0.62 | % | 1.41 | % | 2.61 | % | 2.09 | % | 1.17 | % | ||||||||||
Net Investment Income Net of Reimbursements |
0.63 | % | 1.41 | % | 2.62 | % | 2.10 | % | 1.18 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(f) |
84 | % | 79 | % | 73 | % | 131 | % | 71 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 374,339 | $ | 469,201 | $ | 275,097 | $ | 211,350 | $ | 162,557 |
See Accompanying Notes to the Financial Statements.
120 | FLEXSHARES ANNUAL REPORT |
Financial Highlights (cont.)
FlexShares® Core Select Bond Fund | ||||||||||||||||||||
For
the period 11/18/16* through 10/31/17 |
||||||||||||||||||||
Year ended October 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||||||
Net asset value, beginning of period |
$ | 26.78 | $ | 25.66 | $ | 23.74 | $ | 25.08 | $ | 25.00 | ||||||||||
|
|
|||||||||||||||||||
PER SHARE |
||||||||||||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income |
0.46 | (a) | 0.51 | (a) | 0.73 | (a) | 0.63 | (a) | 0.55 | (a) | ||||||||||
Net Realized and Unrealized Gain (Loss) |
(0.39 | ) | 1.19 | 1.93 | (1.31 | ) | 0.15 | |||||||||||||
|
|
|||||||||||||||||||
Total from Operations |
0.07 | 1.70 | 2.66 | (0.68 | ) | 0.70 | ||||||||||||||
|
|
|||||||||||||||||||
Distributions |
||||||||||||||||||||
Net Investment Income |
(0.52 | ) | (0.58 | ) | (0.74 | ) | (0.66 | ) | (0.62 | ) | ||||||||||
From Net Realized Gains |
(0.11 | ) | — | — | — | — | ||||||||||||||
|
|
|||||||||||||||||||
Total from Distributions |
(0.63 | ) | (0.58 | ) | (0.74 | ) | (0.66 | ) | (0.62 | ) | ||||||||||
|
|
|||||||||||||||||||
Net Asset Value, end of period |
$ | 26.22 | $ | 26.78 | $ | 25.66 | $ | 23.74 | $ | 25.08 | ||||||||||
|
|
|||||||||||||||||||
Total Return(b) |
||||||||||||||||||||
Net Asset Value(d) |
0.26 | % | 6.69 | % | 11.38 | % | (2.73 | )% | 2.86 | % | ||||||||||
Market Value (Unaudited)(e) |
0.30 | % | 6.57 | % | 11.41 | % | (2.92 | )% | 3.19 | % | ||||||||||
RATIOS/SUPPLEMENT DATA |
||||||||||||||||||||
Ratios to Average Net Assets(c) |
||||||||||||||||||||
Expenses |
0.36 | %(i) | 0.36 | %(i) | 0.36 | %(i) | 0.36 | %(i) | 0.43 | %(i) | ||||||||||
Expenses net of reimbursements |
0.20 | %(i) | 0.20 | %(i) | 0.19 | %(i) | 0.16 | %(i) | 0.16 | %(i) | ||||||||||
Net Investment Income Before Reimbursements |
1.56 | % | 1.76 | % | 2.80 | % | 2.41 | % | 2.08 | % | ||||||||||
Net Investment Income Net of Reimbursements |
1.72 | % | 1.93 | % | 2.97 | % | 2.61 | % | 2.35 | % | ||||||||||
Supplemental Data |
||||||||||||||||||||
Portfolio Turnover Rate(b)(f) |
50 | % | 91 | % | 135 | % | 53 | % | 99 | % | ||||||||||
Net assets, end of period (thousands) |
$ | 126,517 | $ | 109,123 | $ | 26,299 | $ | 38,583 | $ | 3,762 |
* |
Commencement of investment operations. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 121 |
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) |
Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) |
In-kind transactions are not included in portfolio turnover calculations. |
(h) |
Per share amount is less than $0.005. |
(i) |
The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(k) |
Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
(l) |
Less than 0.5%. |
(m) |
Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. For the FlexShares STOXX Global ESG Select Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
(n) |
Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
122 | FLEXSHARES ANNUAL REPORT |
FlexShares® US Quality Low Volatility Index Fund
October 31, 2021
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.8% | ||||||||
Air Freight & Logistics – 2.0% | ||||||||
CH Robinson Worldwide, Inc. |
9,204 | $ | 892,696 | |||||
Expeditors International of Washington, Inc. |
10,266 | 1,265,387 | ||||||
United Parcel Service, Inc., Class B |
4,661 | 994,984 | ||||||
3,153,067 | ||||||||
Automobiles – 0.4% | ||||||||
Tesla, Inc.* |
531 | 591,534 | ||||||
Banks – 0.1% | ||||||||
JPMorgan Chase & Co. |
767 | 130,306 | ||||||
Beverages – 1.7% | ||||||||
Coca-Cola Co. (The) |
11,918 | 671,817 | ||||||
PepsiCo, Inc. |
12,508 | 2,021,293 | ||||||
2,693,110 | ||||||||
Biotechnology – 3.8% | ||||||||
AbbVie, Inc. |
10,502 | 1,204,264 | ||||||
Amgen, Inc. |
10,266 | 2,124,754 | ||||||
Gilead Sciences, Inc. |
19,411 | 1,259,386 | ||||||
Regeneron Pharmaceuticals, Inc.* |
2,124 | 1,359,233 | ||||||
United Therapeutics Corp.* |
708 | 135,058 | ||||||
6,082,695 | ||||||||
Capital Markets – 2.1% | ||||||||
Intercontinental Exchange, Inc. |
8,142 | 1,127,341 | ||||||
Nasdaq, Inc. |
4,602 | 965,822 | ||||||
S&P Global, Inc. |
2,714 | 1,286,870 | ||||||
3,380,033 | ||||||||
Chemicals – 0.9% | ||||||||
Ecolab, Inc. |
6,254 | 1,389,764 | ||||||
Commercial Services & Supplies – 2.9% | ||||||||
Republic Services, Inc. |
7,316 | 984,734 | ||||||
Tetra Tech, Inc. |
9,027 | 1,585,683 | ||||||
Waste Connections, Inc. |
7,021 | 954,926 | ||||||
Waste Management, Inc. |
6,726 | 1,077,707 | ||||||
4,603,050 | ||||||||
Diversified Financial Services – 0.2% | ||||||||
Berkshire Hathaway, Inc., Class B* |
1,239 | 355,605 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – 2.1% | ||||||||
AT&T, Inc. |
16,225 | $ | 409,843 | |||||
Frontier Communications Parent, Inc.* |
4,307 | 133,345 | ||||||
Iridium Communications, Inc.* |
20,532 | 832,573 | ||||||
Verizon Communications, Inc. |
36,993 | 1,960,259 | ||||||
3,336,020 | ||||||||
Electric Utilities – 3.5% | ||||||||
American Electric Power Co., Inc. |
8,614 | 729,692 | ||||||
Duke Energy Corp. |
1,003 | 102,316 | ||||||
IDACORP, Inc. |
10,974 | 1,144,808 | ||||||
NextEra Energy, Inc. |
17,523 | 1,495,238 | ||||||
Pinnacle West Capital Corp. |
9,617 | 620,200 | ||||||
PNM Resources, Inc. |
16,520 | 821,870 | ||||||
Xcel Energy, Inc. |
11,151 | 720,243 | ||||||
5,634,367 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.7% | ||||||||
American Tower Corp. |
1,180 | 332,724 | ||||||
Crown Castle International Corp. |
3,953 | 712,726 | ||||||
Equinix, Inc. |
354 | 296,323 | ||||||
Extra Space Storage, Inc. |
6,254 | 1,234,352 | ||||||
Public Storage |
4,248 | 1,411,101 | ||||||
SBA Communications Corp. |
1,121 | 387,115 | ||||||
4,374,341 | ||||||||
Food & Staples Retailing – 5.5% | ||||||||
Albertsons Cos., Inc., Class A |
27,199 | 841,809 | ||||||
Costco Wholesale Corp. |
7,965 | 3,915,116 | ||||||
Kroger Co. (The) |
19,883 | 795,718 | ||||||
Walmart, Inc. |
22,656 | 3,385,259 | ||||||
8,937,902 | ||||||||
Food Products – 1.2% | ||||||||
Hershey Co. (The) |
6,962 | 1,220,787 | ||||||
Hormel Foods Corp. |
18,113 | 766,542 | ||||||
1,987,329 | ||||||||
Health Care Equipment & Supplies – 0.8% | ||||||||
Abbott Laboratories |
10,679 | 1,376,416 | ||||||
Health Care Providers & Services – 0.8% | ||||||||
Chemed Corp. |
2,596 | 1,251,921 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 123 |
FlexShares® US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
UnitedHealth Group, Inc. |
236 | $ | 108,671 | |||||
1,360,592 | ||||||||
Hotels, Restaurants & Leisure – 0.0%(a) | ||||||||
Booking Holdings, Inc.* |
24 | 58,099 | ||||||
Household Durables – 0.1% | ||||||||
Newell Brands, Inc. |
10,561 | 241,741 | ||||||
Household Products – 0.9% | ||||||||
Clorox Co. (The) |
4,484 | 730,937 | ||||||
Procter & Gamble Co. (The) |
4,543 | 649,603 | ||||||
1,380,540 | ||||||||
Industrial Conglomerates – 0.2% | ||||||||
Roper Technologies, Inc. |
531 | 259,059 | ||||||
Insurance – 5.0% | ||||||||
Alleghany Corp.* |
1,652 | 1,076,080 | ||||||
Aon plc, Class A |
3,245 | 1,038,141 | ||||||
Assurant, Inc. |
4,956 | 799,452 | ||||||
Chubb Ltd. |
5,723 | 1,118,160 | ||||||
Markel Corp.* |
649 | 852,221 | ||||||
Progressive Corp. (The) |
10,266 | 974,038 | ||||||
Travelers Cos., Inc. (The) |
7,965 | 1,281,409 | ||||||
W R Berkley Corp. |
11,033 | 878,227 | ||||||
8,017,728 | ||||||||
Interactive Media & Services – 5.9% | ||||||||
Alphabet, Inc., Class A* |
1,268 | 3,754,447 | ||||||
Alphabet, Inc., Class C* |
1,496 | 4,436,253 | ||||||
Meta Platforms, Inc., Class A* |
4,189 | 1,355,435 | ||||||
9,546,135 | ||||||||
IT Services – 6.8% | ||||||||
Accenture plc, Class A |
8,850 | 3,175,291 | ||||||
Akamai Technologies, Inc.* |
4,956 | 522,660 | ||||||
Globant SA* |
2,891 | 922,778 | ||||||
Mastercard, Inc., Class A |
6,903 | 2,316,095 | ||||||
Visa, Inc., Class A |
18,644 | 3,948,240 | ||||||
10,885,064 |
Investments | Shares | Value | ||||||
Life Sciences Tools & Services – 2.0% | ||||||||
Charles River Laboratories International, Inc.* |
2,065 | $ | 926,524 | |||||
ICON plc* |
5,015 | 1,438,152 | ||||||
QIAGEN NV* |
15,871 | 884,967 | ||||||
3,249,643 | ||||||||
Media – 1.4% | ||||||||
Cable One, Inc. |
413 | 706,730 | ||||||
Charter Communications, Inc., Class A* |
2,360 | 1,592,740 | ||||||
2,299,470 | ||||||||
Metals & Mining – 2.2% | ||||||||
Agnico Eagle Mines Ltd. |
21,889 | 1,161,212 | ||||||
Newmont Corp. |
23,659 | 1,277,586 | ||||||
Royal Gold, Inc. |
10,915 | 1,080,803 | ||||||
3,519,601 | ||||||||
Multiline Retail – 2.5% | ||||||||
Dollar General Corp. |
4,189 | 927,947 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.* |
11,741 | 794,396 | ||||||
Target Corp. |
8,968 | 2,328,272 | ||||||
4,050,615 | ||||||||
Multi-Utilities – 1.7% | ||||||||
Ameren Corp. |
6,254 | 527,150 | ||||||
CMS Energy Corp. |
7,906 | 477,127 | ||||||
Consolidated Edison, Inc. |
8,083 | 609,458 | ||||||
WEC Energy Group, Inc. |
12,921 | 1,163,665 | ||||||
2,777,400 | ||||||||
Pharmaceuticals – 9.1% | ||||||||
Bristol-Myers Squibb Co. |
9,735 | 568,524 | ||||||
Eli Lilly and Co. |
14,691 | 3,742,679 | ||||||
Johnson & Johnson |
40,179 | 6,544,355 | ||||||
Merck & Co., Inc. |
22,951 | 2,020,836 | ||||||
Zoetis, Inc. |
8,496 | 1,836,835 | ||||||
14,713,229 | ||||||||
Professional Services – 0.6% | ||||||||
Verisk Analytics, Inc. |
4,661 | 980,068 | ||||||
Road & Rail – 2.8% | ||||||||
JB Hunt Transport Services, Inc. |
4,897 | 965,639 |
See Accompanying Notes to the Financial Statements.
124 | FLEXSHARES ANNUAL REPORT |
FlexShares® US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Road & Rail – (continued) | ||||||||
Landstar System, Inc. |
5,133 | $ | 902,433 | |||||
Old Dominion Freight Line, Inc. |
4,543 | 1,550,753 | ||||||
Saia, Inc.* |
3,363 | 1,051,408 | ||||||
4,470,233 | ||||||||
Semiconductors & Semiconductor Equipment – 0.2% | ||||||||
NVIDIA Corp. |
1,062 | 271,522 | ||||||
Software – 16.5% | ||||||||
Adobe, Inc.* |
7,080 | 4,604,549 | ||||||
Atlassian Corp. plc, Class A* |
2,832 | 1,297,424 | ||||||
Check Point Software Technologies Ltd.* |
9,853 | 1,178,419 | ||||||
Intuit, Inc. |
4,779 | 2,991,606 | ||||||
Microsoft Corp. |
44,191 | 14,654,619 | ||||||
Tyler Technologies, Inc.* |
1,770 | 961,499 | ||||||
Zoom Video Communications, Inc., Class A* |
3,245 | 891,239 | ||||||
26,579,355 | ||||||||
Specialty Retail – 5.3% | ||||||||
AutoZone, Inc.* |
118 | 210,611 | ||||||
Home Depot, Inc. (The) |
18,998 | 7,062,316 | ||||||
O’Reilly Automotive, Inc.* |
2,065 | 1,285,091 | ||||||
8,558,018 | ||||||||
Technology Hardware, Storage & Peripherals – 4.5% | ||||||||
Apple, Inc. |
48,852 | 7,318,030 | ||||||
Tobacco – 0.0%(a) | ||||||||
Philip Morris International, Inc. |
767 | 72,512 | ||||||
Water Utilities – 0.8% | ||||||||
American Water Works Co., Inc. |
7,198 | 1,253,748 | ||||||
Wireless Telecommunication Services – 0.6% | ||||||||
T-Mobile US, Inc.* |
7,788 | 895,854 | ||||||
Total
Common Stocks (Cost $129,948,213) |
|
160,783,795 |
Investments | Principal Amount |
Value | ||||||
SHORT-TERM INVESTMENTS – 0.0%(a) | ||||||||
U.S. TREASURY OBLIGATIONS – 0.0%(a) | ||||||||
U.S. Treasury Bills 0.04%, 1/27/2022(b) (c) (Cost $34,997) |
$ | 35,000 | $ | 34,996 | ||||
Total Investments – 99.8% (Cost $129,983,210) |
|
160,818,791 | ||||||
Other assets less liabilities – 0.2% |
|
255,701 | ||||||
NET ASSETS – 100.0% |
|
$ | 161,074,492 |
* |
Non-income producing security. |
(a) |
Represents less than 0.05% of net assets. |
(b) |
All or a portion of the security pledged as collateral for Futures Contracts. |
(c) |
The rate shown was the current yield as of October 31, 2021. |
Percentages |
shown are based on Net Assets. |
As of October 31, 2021, 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 |
$ | 32,885,740 | ||
Aggregate gross unrealized depreciation |
(2,060,546 | ) | ||
Net unrealized appreciation |
$ | 30,825,194 | ||
Federal income tax cost |
$ | 130,002,138 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 125 |
FlexShares® US Quality Low Volatility Index Fund (cont.)
Futures Contracts
FlexShares® US Quality Low Volatility Index Fund had the following open futures contracts as of October 31, 2021:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Appreciation* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
Micro E-mini S&P 500 Index |
10 | 12/17/2021 | USD | $ | 229,850 | $ | 8,541 |
* |
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 |
99.8 | % | ||
Short-Term Investments |
0.0 | † | ||
Others(1) |
0.2 | |||
100.0 | % |
† |
Amount represents less than 0.05%. |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
126 | FLEXSHARES ANNUAL REPORT |
Schedule of Investments
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund
October 31, 2021
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.3% | ||||||||
Aerospace & Defense – 0.1% | ||||||||
Elbit Systems Ltd. |
81 | $ | 12,778 | |||||
Singapore Technologies Engineering Ltd. |
18,900 | 53,680 | ||||||
66,458 | ||||||||
Air Freight & Logistics – 1.2% | ||||||||
Deutsche Post AG (Registered) |
2,781 | 172,244 | ||||||
DSV A/S |
675 | 157,033 | ||||||
SG Holdings Co. Ltd. |
21,600 | 539,882 | ||||||
869,159 | ||||||||
Auto Components – 0.6% | ||||||||
Bridgestone Corp. |
2,700 | 118,845 | ||||||
Pirelli & C SpA(a) |
47,709 | 293,282 | ||||||
412,127 | ||||||||
Banks – 12.7% | ||||||||
Australia & New Zealand Banking Group Ltd. |
43,011 | 909,078 | ||||||
Bank Hapoalim BM |
36,396 | 358,559 | ||||||
Bank Leumi Le-Israel BM |
73,602 | 703,414 | ||||||
Bank of Nova Scotia (The) |
17,469 | 1,143,507 | ||||||
Bankinter SA |
51,759 | 285,235 | ||||||
BOC Hong Kong Holdings Ltd. |
189,000 | 600,112 | ||||||
Chiba Bank Ltd. (The) |
32,400 | 200,609 | ||||||
Commonwealth Bank of Australia |
17,064 | 1,341,659 | ||||||
Danske Bank A/S |
4,101 | 69,473 | ||||||
FinecoBank Banca Fineco SpA* |
17,685 | 337,995 | ||||||
Hang Seng Bank Ltd. |
32,400 | 616,425 | ||||||
Royal Bank of Canada |
14,121 | 1,467,522 | ||||||
Shizuoka Bank Ltd. (The) |
40,500 | 325,705 | ||||||
Skandinaviska Enskilda Banken AB, Class A |
3,915 | 61,197 | ||||||
Sumitomo Mitsui Financial Group, Inc. |
18,200 | 593,924 | ||||||
Swedbank AB, Class A |
2,916 | 63,233 | ||||||
Toronto-Dominion Bank (The) |
6,831 | 495,097 | ||||||
9,572,744 |
Investments | Shares | Value | ||||||
Beverages – 0.6% | ||||||||
Budweiser Brewing Co. APAC Ltd.(a) |
37,800 | $ | 104,230 | |||||
Carlsberg A/S, Class B |
648 | 107,003 | ||||||
Suntory Beverage & Food Ltd. |
5,400 | 209,085 | ||||||
420,318 | ||||||||
Building Products – 0.4% | ||||||||
AGC, Inc. |
6,700 | 333,164 | ||||||
Capital Markets – 2.3% | ||||||||
Deutsche Boerse AG |
3,726 | 619,191 | ||||||
Euronext NV(a) |
1,809 | 203,903 | ||||||
Japan Exchange Group, Inc. |
16,200 | 382,677 | ||||||
Singapore Exchange Ltd. |
72,900 | 523,301 | ||||||
1,729,072 | ||||||||
Chemicals – 5.8% | ||||||||
Air Liquide SA |
6,723 | 1,122,215 | ||||||
Akzo Nobel NV |
3,240 | 372,774 | ||||||
Chr Hansen Holding A/S |
3,105 | 247,305 | ||||||
Covestro AG(a) |
3,699 | 237,149 | ||||||
Givaudan SA (Registered) |
135 | 636,624 | ||||||
Kansai Paint Co. Ltd. |
5,400 | 124,694 | ||||||
Koninklijke DSM NV |
2,835 | 620,236 | ||||||
Novozymes A/S, Class B |
8,667 | 637,990 | ||||||
Symrise AG |
2,916 | 403,426 | ||||||
4,402,413 | ||||||||
Commercial Services & Supplies – 1.4% | ||||||||
Brambles Ltd. |
47,763 | 360,183 | ||||||
Secom Co. Ltd. |
6,500 | 441,162 | ||||||
Securitas AB, Class B |
16,551 | 273,650 | ||||||
1,074,995 | ||||||||
Diversified Financial Services – 0.9% | ||||||||
Groupe Bruxelles Lambert SA |
3,105 | 360,224 | ||||||
Investor AB, Class A |
1,836 | 42,438 | ||||||
Investor AB, Class B |
9,180 | 211,530 | ||||||
L E Lundbergforetagen AB, Class B |
297 | 17,104 | ||||||
Sofina SA |
81 | 35,845 | ||||||
667,141 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 127 |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – 5.1% | ||||||||
BT Group plc* |
122,148 | $ | 232,566 | |||||
Elisa OYJ |
9,126 | 551,076 | ||||||
Koninklijke KPN NV |
79,582 | 238,069 | ||||||
Nippon Telegraph & Telephone Corp. |
21,100 | 589,930 | ||||||
Orange SA |
34,695 | 378,823 | ||||||
Proximus SADP |
15,849 | 298,687 | ||||||
Singapore Telecommunications Ltd. |
164,700 | 305,339 | ||||||
Spark New Zealand Ltd. |
11,880 | 38,811 | ||||||
Swisscom AG (Registered) |
1,107 | 603,807 | ||||||
Telecom Italia SpA |
415,908 | 148,292 | ||||||
Telefonica Deutschland Holding AG |
104,112 | 271,450 | ||||||
Telia Co. AB |
8,613 | 33,892 | ||||||
United Internet AG (Registered) |
3,996 | 147,425 | ||||||
3,838,167 | ||||||||
Electric Utilities – 4.0% | ||||||||
Chubu Electric Power Co., Inc. |
45,900 | 474,599 | ||||||
CLP Holdings Ltd. |
34,000 | 332,830 | ||||||
Emera, Inc. |
4,212 | 195,657 | ||||||
Fortis, Inc. |
6,372 | 283,194 | ||||||
Hydro One Ltd.(a) |
9,801 | 233,807 | ||||||
Iberdrola SA |
76,626 | 905,820 | ||||||
Power Assets Holdings Ltd. |
94,500 | 576,423 | ||||||
3,002,330 | ||||||||
Electrical Equipment – 0.3% | ||||||||
Signify NV(a) |
4,131 | 200,068 | ||||||
Electronic Equipment, Instruments & Components – 1.3% | ||||||||
Halma plc |
8,964 | 363,953 | ||||||
Hirose Electric Co. Ltd. |
2,100 | 349,739 | ||||||
Keyence Corp. |
400 | 240,333 | ||||||
954,025 | ||||||||
Entertainment – 0.0%(b) | ||||||||
Bollore SA |
4,482 | 25,986 | ||||||
Equity Real Estate Investment Trusts (REITs) – 0.8% | ||||||||
Link REIT |
67,500 | 598,723 | ||||||
Food & Staples Retailing – 4.9% | ||||||||
Coles Group Ltd. |
7,101 | 91,417 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
Etablissements Franz Colruyt NV |
4,104 | $ | 201,563 | |||||
ICA Gruppen AB |
5,319 | 274,977 | ||||||
J Sainsbury plc |
83,295 | 341,845 | ||||||
Jeronimo Martins SGPS SA |
11,097 | 251,703 | ||||||
Kesko OYJ, Class B |
4,806 | 156,229 | ||||||
Koninklijke Ahold Delhaize NV |
22,491 | 732,159 | ||||||
Lawson, Inc. |
4,200 | 202,956 | ||||||
Loblaw Cos. Ltd. |
5,076 | 381,166 | ||||||
Tesco plc |
112,860 | 417,543 | ||||||
Tsuruha Holdings, Inc. |
2,500 | 308,046 | ||||||
Welcia Holdings Co. Ltd. |
8,100 | 302,263 | ||||||
3,661,867 | ||||||||
Food Products – 5.5% | ||||||||
MEIJI Holdings Co. Ltd. |
3,700 | 233,309 | ||||||
Nestle SA (Registered) |
27,405 | 3,623,609 | ||||||
Yakult Honsha Co. Ltd. |
5,400 | 271,835 | ||||||
4,128,753 | ||||||||
Gas Utilities – 1.1% | ||||||||
Osaka Gas Co. Ltd. |
13,500 | 217,373 | ||||||
Toho Gas Co. Ltd. |
12,200 | 360,570 | ||||||
Tokyo Gas Co. Ltd. |
16,200 | 281,165 | ||||||
859,108 | ||||||||
Health Care Equipment & Supplies – 2.9% | ||||||||
Coloplast A/S, Class B |
2,673 | 436,189 | ||||||
ConvaTec Group plc(a) |
48,492 | 142,114 | ||||||
Hoya Corp. |
6,000 | 880,070 | ||||||
Sysmex Corp. |
6,000 | 740,364 | ||||||
2,198,737 | ||||||||
Health Care Providers & Services – 0.1% | ||||||||
Sonic Healthcare Ltd. |
1,566 | 47,084 | ||||||
Hotels, Restaurants & Leisure – 0.3% | ||||||||
McDonald’s Holdings Co. Japan Ltd. |
5,400 | 241,052 | ||||||
Household Durables – 0.8% | ||||||||
Rinnai Corp. |
1,100 | 112,484 | ||||||
SEB SA |
1,350 | 211,378 | ||||||
Sekisui House Ltd. |
13,500 | 279,590 | ||||||
603,452 |
See Accompanying Notes to the Financial Statements.
128 | FLEXSHARES ANNUAL REPORT |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Household Products – 1.0% | ||||||||
Lion Corp. |
13,400 | $ | 222,697 | |||||
Reckitt Benckiser Group plc |
6,291 | 510,935 | ||||||
733,632 | ||||||||
Independent Power and Renewable Electricity Producers – 0.4% |
||||||||
Uniper SE |
7,209 | 318,771 | ||||||
Industrial Conglomerates – 0.8% | ||||||||
Jardine Matheson Holdings Ltd. |
10,800 | 625,644 | ||||||
Insurance – 2.4% | ||||||||
Admiral Group plc |
11,826 | 465,241 | ||||||
Ageas SA |
216 | 10,524 | ||||||
AIA Group Ltd. |
10,800 | 121,966 | ||||||
Direct Line Insurance Group plc |
58,698 | 235,266 | ||||||
Fairfax Financial Holdings Ltd. |
1,242 | 502,241 | ||||||
Gjensidige Forsikring ASA |
864 | 21,459 | ||||||
Japan Post Insurance Co. Ltd. |
2,700 | 43,806 | ||||||
NN Group NV |
411 | 22,031 | ||||||
Sampo OYJ, Class A |
2,430 | 129,357 | ||||||
Tryg A/S |
11,720 | 278,125 | ||||||
1,830,016 | ||||||||
IT Services – 2.7% | ||||||||
Adyen NV* (a) |
54 | 163,134 | ||||||
CGI, Inc.* |
3,375 | 301,029 | ||||||
Fujitsu Ltd. |
1,900 | 327,012 | ||||||
Itochu Techno-Solutions Corp. |
5,400 | 170,015 | ||||||
Nomura Research Institute Ltd. |
8,100 | 322,508 | ||||||
NTT Data Corp. |
5,400 | 108,118 | ||||||
Obic Co. Ltd. |
3,100 | 570,656 | ||||||
Shopify, Inc., Class A* |
54 | 79,203 | ||||||
2,041,675 | ||||||||
Leisure Products – 0.4% | ||||||||
Bandai Namco Holdings, Inc. |
4,000 | 304,740 | ||||||
Machinery – 2.0% | ||||||||
GEA Group AG |
6,777 | 334,020 | ||||||
Knorr-Bremse AG |
2,160 | 227,819 | ||||||
Kone OYJ, Class B |
7,722 | 526,883 | ||||||
Schindler Holding AG |
1,539 | 401,193 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Schindler Holding AG (Registered) |
189 | $ | 48,566 | |||||
1,538,481 | ||||||||
Marine – 0.8% | ||||||||
Hapag-Lloyd AG(a) |
108 | 23,234 | ||||||
Kuehne + Nagel International AG (Registered) |
1,917 | 604,839 | ||||||
628,073 | ||||||||
Media – 0.5% | ||||||||
Pearson plc |
42,120 | 347,802 | ||||||
Metals & Mining – 0.4% | ||||||||
Franco-Nevada Corp. |
2,301 | 327,807 | ||||||
Multiline Retail – 0.9% | ||||||||
Wesfarmers Ltd. |
16,254 | 698,930 | ||||||
Oil, Gas & Consumable Fuels – 0.1% | ||||||||
Idemitsu Kosan Co. Ltd. |
2,700 | 73,760 | ||||||
Personal Products – 1.4% | ||||||||
Beiersdorf AG |
2,484 | 264,177 | ||||||
Kobayashi Pharmaceutical Co. Ltd. |
8,100 | 647,147 | ||||||
Unilever plc |
2,430 | 130,306 | ||||||
1,041,630 | ||||||||
Pharmaceuticals – 12.9% | ||||||||
AstraZeneca plc |
5,913 | 737,091 | ||||||
GlaxoSmithKline plc |
71,766 | 1,484,059 | ||||||
Hikma Pharmaceuticals plc |
7,614 | 251,216 | ||||||
Novartis AG (Registered) |
2,376 | 196,685 | ||||||
Novo Nordisk A/S, Class B |
26,028 | 2,851,668 | ||||||
Ono Pharmaceutical Co. Ltd. |
2,700 | 56,486 | ||||||
Roche Holding AG |
9,072 | 3,515,121 | ||||||
Roche Holding AG – BR |
108 | 46,450 | ||||||
Sanofi |
3,105 | 310,566 | ||||||
Santen Pharmaceutical Co. Ltd. |
17,000 | 238,693 | ||||||
9,688,035 | ||||||||
Professional Services – 1.9% | ||||||||
RELX plc |
24,840 | 770,879 | ||||||
Wolters Kluwer NV |
6,102 | 640,058 | ||||||
1,410,937 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 129 |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – 3.1% | ||||||||
CK Asset Holdings Ltd. |
13,500 | $ | 83,387 | |||||
Daito Trust Construction Co. Ltd. |
400 | 49,533 | ||||||
Deutsche Wohnen SE* (c) |
3,528 | 216,387 | ||||||
Hang Lung Properties Ltd. |
108,000 | 250,735 | ||||||
Henderson Land Development Co. Ltd. |
135,000 | 565,750 | ||||||
Hongkong Land Holdings Ltd. |
2,700 | 14,877 | ||||||
New World Development Co. Ltd. |
27,000 | 117,142 | ||||||
PSP Swiss Property AG (Registered) |
2,295 | 287,330 | ||||||
Sun Hung Kai Properties Ltd. |
45,000 | 598,724 | ||||||
Wharf Real Estate Investment Co. Ltd. |
27,000 | 152,371 | ||||||
2,336,236 | ||||||||
Road & Rail – 0.4% | ||||||||
MTR Corp. Ltd. |
54,000 | 294,329 | ||||||
Semiconductors & Semiconductor Equipment – 1.0% | ||||||||
ASML Holding NV |
972 | 787,955 | ||||||
Software – 2.1% | ||||||||
Dassault Systemes SE |
10,800 | 629,664 | ||||||
Nice Ltd.* |
1,134 | 319,777 | ||||||
Open Text Corp. |
5,184 | 260,716 | ||||||
Oracle Corp. Japan |
2,700 | 254,549 | ||||||
SAP SE |
783 | 113,556 | ||||||
1,578,262 | ||||||||
Specialty Retail – 1.8% | ||||||||
ABC-Mart, Inc. |
5,400 | 258,102 | ||||||
Nitori Holdings Co. Ltd. |
3,200 | 585,275 | ||||||
Yamada Holdings Co. Ltd. |
124,200 | 473,817 | ||||||
1,317,194 | ||||||||
Technology Hardware, Storage & Peripherals – 0.8% | ||||||||
FUJIFILM Holdings Corp. |
8,100 | 625,197 | ||||||
Textiles, Apparel & Luxury Goods – 2.7% | ||||||||
Hermes International |
513 | 813,624 | ||||||
LVMH Moet Hennessy Louis Vuitton SE |
1,566 | 1,227,258 | ||||||
2,040,882 |
Investments | Shares | Value | ||||||
Tobacco – 0.9% | ||||||||
Japan Tobacco, Inc. |
35,100 | $ | 688,148 | |||||
Trading Companies & Distributors – 1.6% | ||||||||
ITOCHU Corp. |
21,600 | 614,139 | ||||||
MonotaRO Co. Ltd. |
27,000 | 610,919 | ||||||
1,225,058 | ||||||||
Water Utilities – 0.8% | ||||||||
Pennon Group plc |
15,174 | 242,525 | ||||||
United Utilities Group plc |
23,463 | 334,002 | ||||||
576,527 | ||||||||
Wireless Telecommunication Services – 2.4% | ||||||||
KDDI Corp. |
25,800 | 798,267 | ||||||
Rogers Communications, Inc., Class B |
729 | 33,852 | ||||||
SoftBank Corp. |
45,900 | 625,753 | ||||||
Vodafone Group plc |
247,401 | 366,391 | ||||||
1,824,263 | ||||||||
Total
Common Stocks (Cost $67,222,791) |
|
74,810,927 | ||||||
Total
Investments – 99.3% (Cost $67,222,791) |
|
74,810,927 | ||||||
Other assets less liabilities – 0.7% |
|
560,030 | ||||||
NET ASSETS – 100.0% |
|
$ | 75,370,957 |
* |
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. |
(b) |
Represents less than 0.05% of net assets. |
(c) |
Security fair valued as of October 31, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at October 31, 2021 amounted to $216,387, which represents approximately 0.29% of net assets of the Fund. |
Percentages shown are based on Net Assets.
Abbreviations
OYJ – Public Limited Company
See Accompanying Notes to the Financial Statements.
130 | FLEXSHARES ANNUAL REPORT |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
As of October 31, 2021, 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 |
$ | 9,905,087 | ||
Aggregate gross unrealized depreciation |
(2,564,444 | ) | ||
Net unrealized appreciation |
$ | 7,340,643 | ||
Federal income tax cost |
$ | 67,480,249 |
Futures Contracts
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund had the following open futures contracts as of October 31, 2021:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Appreciation* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI EAFE E-Mini Index |
5 | 12/17/2021 | USD | $ | 584,900 | $ | 4,748 |
* |
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, 2021:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||
AUD |
141,644 | Morgan Stanley | USD | 104,952 | 12/15/2021 | $ | 1,455 | |||||||||||||||
CAD |
6,535 | Citibank NA | USD | 5,246 | 12/15/2021 | 26 | ||||||||||||||||
CAD |
7,999 | Toronto-Dominion Bank (The) | USD | 6,306 | 12/15/2021 | 147 | ||||||||||||||||
CHF |
37,160 | Morgan Stanley | USD | 40,039 | 12/15/2021 | 682 | ||||||||||||||||
DKK |
58,667 | Bank of New York | USD | 9,114 | 12/15/2021 | 22 | ||||||||||||||||
EUR |
79,445 | Morgan Stanley | USD | 91,822 | 12/15/2021 | 213 | ||||||||||||||||
GBP |
45,643 | Citibank NA | USD | 62,023 | 12/15/2021 | 552 | ||||||||||||||||
ILS |
38,719 | Toronto-Dominion Bank (The) | USD | 12,229 | 12/15/2021 | 40 | ||||||||||||||||
JPY |
14,298,839 | Citibank NA | USD | 125,264 | 12/15/2021 | 200 | ||||||||||||||||
NOK |
170,805 | Morgan Stanley | USD | 19,986 | 12/15/2021 | 199 | ||||||||||||||||
NZD |
20,383 | Citibank NA | USD | 14,122 | 12/15/2021 | 454 | ||||||||||||||||
SEK |
92,881 | Morgan Stanley | USD | 10,598 | 12/15/2021 | 224 | ||||||||||||||||
SGD |
38,124 | Toronto-Dominion Bank (The) | USD | 28,104 | 12/15/2021 | 162 | ||||||||||||||||
USD |
60,182 | Bank of New York | DKK | 378,042 | 12/15/2021 | 1,309 | ||||||||||||||||
USD |
145,461 | BNP Paribas SA | EUR | 122,771 | 12/15/2021 | 3,232 | ||||||||||||||||
USD |
61,642 | Morgan Stanley | EUR | 52,991 | 12/15/2021 | 253 | ||||||||||||||||
USD |
48,812 | Morgan Stanley | GBP | 35,259 | 12/15/2021 | 473 | ||||||||||||||||
USD |
160,897 | Toronto-Dominion Bank (The) | GBP | 116,815 | 12/15/2021 | 746 | ||||||||||||||||
USD |
65,510 | BNP Paribas SA | HKD | 509,308 | 12/15/2021 | 31 | ||||||||||||||||
USD |
76,299 | BNP Paribas SA | JPY | 8,587,129 | 12/15/2021 | 952 | ||||||||||||||||
USD |
102,472 | Citibank NA |
JPY |
11,644,786 | 12/15/2021 | 295 | ||||||||||||||||
USD |
169,261 | Morgan Stanley | JPY | 18,933,055 | 12/15/2021 | 3,135 | ||||||||||||||||
Total unrealized appreciation |
|
$ | 14,802 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 131 |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
Forward Foreign Currency Contracts (cont.)
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||
AUD |
15,423 | Bank of New York | USD | 11,630 | 12/15/2021 | $ | (44 | ) | ||||||||||||||
CAD |
10,519 | Morgan Stanley | USD | 8,518 | 12/15/2021 | (31 | ) | |||||||||||||||
CHF |
25,082 | BNP Paribas SA | USD | 27,497 | 12/15/2021 | (11 | ) | |||||||||||||||
DKK |
52,098 | Citibank NA | USD | 8,187 | 12/15/2021 | (73 | ) | |||||||||||||||
EUR |
157,791 | Toronto-Dominion Bank (The) | USD | 184,527 | 12/15/2021 | (1,728 | ) | |||||||||||||||
GBP |
11,553 | BNP Paribas SA | USD | 15,940 | 12/15/2021 | (101 | ) | |||||||||||||||
GBP |
20,075 | Morgan Stanley | USD | 27,817 | 12/15/2021 | (295 | ) | |||||||||||||||
GBP |
16,076 | Toronto-Dominion Bank (The) | USD | 22,103 | 12/15/2021 | (63 | ) | |||||||||||||||
HKD |
355,868 | Citibank NA | USD | 45,769 | 12/15/2021 | (16 | ) | |||||||||||||||
HKD |
243,445 | Toronto-Dominion Bank (The) | USD | 31,301 | 12/15/2021 | (3 | ) | |||||||||||||||
JPY |
2,517,017 | BNP Paribas SA | USD | 22,903 | 12/15/2021 | (818 | ) | |||||||||||||||
JPY |
2,974,091 | Morgan Stanley | USD | 27,024 | 12/15/2021 | (928 | ) | |||||||||||||||
NOK |
69,316 | Citibank NA | USD | 8,317 | 12/15/2021 | (126 | ) | |||||||||||||||
NZD |
12,229 | Morgan Stanley | USD | 8,803 | 12/15/2021 | (57 | ) | |||||||||||||||
SEK |
109,602 | Morgan Stanley | USD | 12,835 | 12/15/2021 | (66 | ) | |||||||||||||||
SGD |
8,365 | Bank of New York | USD | 6,219 | 12/15/2021 | (17 | ) | |||||||||||||||
SGD |
49,238 | BNP Paribas SA | USD | 36,636 | 12/15/2021 | (130 | ) | |||||||||||||||
USD |
32,125 | Morgan Stanley | AUD | 43,473 | 12/15/2021 | (533 | ) | |||||||||||||||
USD |
42,200 | Toronto-Dominion Bank (The) | CAD | 53,830 | 12/15/2021 | (1,231 | ) | |||||||||||||||
USD |
34,997 | Citibank NA | CHF | 32,252 | 12/15/2021 | (346 | ) | |||||||||||||||
USD |
85,645 | Morgan Stanley | CHF | 78,437 | 12/15/2021 | (308 | ) | |||||||||||||||
USD |
21,275 | Toronto-Dominion Bank (The) | CHF | 19,771 | 12/15/2021 | (391 | ) | |||||||||||||||
USD |
247,259 | Bank of New York | EUR | 214,091 | 12/15/2021 | (761 | ) | |||||||||||||||
USD |
36,526 | BNP Paribas SA | HKD | 284,118 | 12/15/2021 | (2 | ) | |||||||||||||||
USD |
784 | BNP Paribas SA | ILS | 2,512 | 12/15/2021 | (12 | ) | |||||||||||||||
USD |
35,545 | Citibank NA | NOK | 309,199 | 12/15/2021 | (995 | ) | |||||||||||||||
USD |
41,546 | Toronto-Dominion Bank (The) | NZD | 58,517 | 12/15/2021 | (304 | ) | |||||||||||||||
USD |
85,422 | Citibank NA | SEK | 734,867 | 12/15/2021 | (195 | ) | |||||||||||||||
Total unrealized depreciation |
|
$ | (9,585 | ) | ||||||||||||||||||
Net unrealized appreciation |
|
$ | 5,217 |
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
DKK – Danish Krone
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
ILS – Israeli Shekel
JPY – Japanese Yen
NOK – Norwegian Krone
NZD – New Zealand Dollar
SEK – Swedish Krona
SGD – Singapore Dollar
USD – US Dollar
See Accompanying Notes to the Financial Statements.
132 | FLEXSHARES ANNUAL REPORT |
FlexShares® Developed Markets ex-US Quality Low Volatility Index Fund (cont.)
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, 2021:
Australia |
4.6 | % | ||
Belgium |
1.2 | |||
Canada |
7.6 | |||
Denmark |
6.4 | |||
Finland |
1.8 | |||
France |
6.5 | |||
Germany |
4.4 | |||
Hong Kong |
6.7 | |||
Israel |
1.9 | |||
Italy |
1.0 | |||
Japan |
23.9 | |||
Netherlands |
5.0 | |||
New Zealand |
0.1 | |||
Norway |
0.0 | † | ||
Portugal |
0.3 | |||
Singapore |
2.0 | |||
Spain |
1.6 | |||
Sweden |
1.3 | |||
Switzerland |
13.2 | |||
United Kingdom |
9.8 | |||
Other1 |
0.7 | |||
100.0 | % |
† |
Amount represents less than 0.05%. |
1 |
Includes any non-equity securities and net other assets (liabilities). |
Security Type | % of Net Assets | |||
Common Stocks |
99.3 | % | ||
Others(1) |
0.7 | |||
100.0 | % |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 133 |
Schedule of Investments
FlexShares® Emerging Markets Quality Low Volatility Index Fund
October 31, 2021
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.0% | ||||||||
Air Freight & Logistics – 0.5% | ||||||||
Agility Public Warehousing Co. KSC |
25,482 | $ | 84,531 | |||||
Auto Components – 0.7% | ||||||||
MRF Ltd. |
108 | 111,500 | ||||||
Automobiles – 1.0% | ||||||||
Bajaj Auto Ltd. |
2,370 | 117,335 | ||||||
Hero MotoCorp Ltd. |
1,014 | 35,981 | ||||||
153,316 | ||||||||
Banks – 19.8% | ||||||||
Agricultural Bank of China Ltd., Class H |
162,000 | 55,187 | ||||||
Al Rajhi Bank |
7,080 | 261,614 | ||||||
Bank Central Asia Tbk. PT |
15,000 | 7,914 | ||||||
Bank of China Ltd., Class H |
804,000 | 284,225 | ||||||
Bank of Communications Co. Ltd., Class H |
162,000 | 96,421 | ||||||
Banque Centrale Populaire |
2,442 | 77,395 | ||||||
Chang Hwa Commercial Bank Ltd. |
121,200 | 71,477 | ||||||
China Construction Bank Corp., Class H |
204,000 | 138,727 | ||||||
China Merchants Bank Co. Ltd., Class H |
2,000 | 16,853 | ||||||
Commercial Bank PSQC (The) |
20,976 | 35,200 | ||||||
Commercial International Bank Egypt SAE* |
43,128 | 140,036 | ||||||
E.Sun Financial Holding Co. Ltd. |
83,519 | 79,739 | ||||||
First Financial Holding Co. Ltd. |
109,260 | 89,974 | ||||||
Grupo Elektra SAB de CV |
330 | 25,396 | ||||||
Hong Leong Bank Bhd. |
18,600 | 84,533 | ||||||
Hua Nan Financial Holdings Co. Ltd. |
135,484 | 99,146 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
258,000 | 141,287 | ||||||
Itau Unibanco Holding SA (Preference) |
1,200 | 4,962 | ||||||
Kuwait Finance House KSCP |
39,624 | 109,362 | ||||||
Malayan Banking Bhd. |
45,785 | 89,005 | ||||||
Masraf Al Rayan QSC |
103,608 | 135,877 | ||||||
Mega Financial Holding Co. Ltd. |
126,000 | 151,335 | ||||||
National Bank of Kuwait SAKP |
67,110 | 220,398 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Postal Savings Bank of China Co. Ltd., Class H(a) |
120,000 | $ | 87,311 | |||||
Qatar Islamic Bank SAQ |
25,794 | 130,493 | ||||||
Qatar National Bank QPSC |
45,576 | 256,608 | ||||||
Saudi National Bank (The) |
1,482 | 26,037 | ||||||
Sberbank of Russia PJSC |
12,360 | 62,027 | ||||||
SinoPac Financial Holdings Co. Ltd. |
114,000 | 58,008 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. |
118,207 | 96,067 | ||||||
3,132,614 | ||||||||
Biotechnology – 0.4% | ||||||||
Celltrion, Inc.* |
67 | 11,496 | ||||||
Green Cross Corp. |
228 | 53,558 | ||||||
Seegene, Inc. |
66 | 3,005 | ||||||
68,059 | ||||||||
Capital Markets – 0.9% | ||||||||
Macquarie Korea Infrastructure Fund |
11,664 | 136,748 | ||||||
Chemicals – 4.0% | ||||||||
Asian Paints Ltd. |
3,906 | 161,709 | ||||||
PhosAgro PJSC |
1,356 | 107,049 | ||||||
Pidilite Industries Ltd. |
3,012 | 93,063 | ||||||
SABIC Agri-Nutrients Co. |
4,038 | 176,553 | ||||||
Yanbu National Petrochemical Co. |
4,458 | 90,446 | ||||||
628,820 | ||||||||
Commercial Services & Supplies – 0.8% | ||||||||
S-1 Corp. |
1,710 | 121,897 | ||||||
Construction Materials – 0.7% | ||||||||
ACC Ltd. |
348 | 10,844 | ||||||
LafargeHolcim Maroc SA |
396 | 100,404 | ||||||
111,248 | ||||||||
Diversified Consumer Services – 0.3% | ||||||||
China East Education Holdings Ltd.* (a) |
51,000 | 48,581 | ||||||
Diversified Telecommunication Services – 5.3% | ||||||||
China Tower Corp. Ltd., Class H(a) |
516,000 | 66,995 | ||||||
Chunghwa Telecom Co. Ltd. |
39,000 | 154,971 |
See Accompanying Notes to the Financial Statements.
134 | FLEXSHARES ANNUAL REPORT |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
Emirates Integrated Telecommunications Co. PJSC |
46,734 | $ | 78,247 | |||||
Emirates Telecommunications Group Co. PJSC |
12,978 | 90,450 | ||||||
Itissalat Al-Maghrib |
7,830 | 123,691 | ||||||
Saudi Telecom Co. |
6,018 | 187,717 | ||||||
Telefonica Brasil SA |
10,800 | 87,212 | ||||||
TIME dotCom Bhd. |
47,400 | 51,738 | ||||||
841,021 | ||||||||
Electric Utilities – 0.6% | ||||||||
Cia de Transmissao de Energia Eletrica Paulista (Preference) |
3,600 | 15,531 | ||||||
Manila Electric Co. |
14,400 | 81,984 | ||||||
97,515 | ||||||||
Electronic Equipment, Instruments & Components – 1.0% | ||||||||
Hon Hai Precision Industry Co. Ltd. |
19,000 | 73,107 | ||||||
WPG Holdings Ltd. |
48,000 | 89,584 | ||||||
162,691 | ||||||||
Entertainment – 0.4% | ||||||||
NetEase, Inc., ADR |
576 | 56,212 | ||||||
Food & Staples Retailing – 2.3% | ||||||||
BIM Birlesik Magazalar A/S |
13,962 | 90,247 | ||||||
President Chain Store Corp. |
9,000 | 90,943 | ||||||
Puregold Price Club, Inc. |
71,640 | 60,044 | ||||||
Raia Drogasil SA* |
2,400 | 9,899 | ||||||
Sun Art Retail Group Ltd. |
93,000 | 54,755 | ||||||
Wal-Mart de Mexico SAB de CV |
16,800 | 58,726 | ||||||
364,614 | ||||||||
Food Products – 6.2% | ||||||||
Almarai Co. JSC |
4,284 | 60,418 | ||||||
Dali Foods Group Co. Ltd.(a) |
231,000 | 128,580 | ||||||
International Holding Co. PJSC* |
2,940 | 117,259 | ||||||
Nestle Malaysia Bhd. |
3,900 | 126,672 | ||||||
Orion Corp. |
816 | 82,400 | ||||||
Tingyi Cayman Islands Holding Corp. |
70,000 | 131,019 | ||||||
Uni-President China Holdings Ltd. |
108,000 | 92,186 | ||||||
Uni-President Enterprises Corp. |
42,000 | 100,588 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Want Want China Holdings Ltd. |
186,000 | $ | 144,180 | |||||
983,302 | ||||||||
Gas Utilities – 1.8% | ||||||||
China Resources Gas Group Ltd. |
14,000 | 75,228 | ||||||
ENN Energy Holdings Ltd. |
5,200 | 90,042 | ||||||
Petronas Gas Bhd. |
31,200 | 126,126 | ||||||
291,396 | ||||||||
Health Care Providers & Services – 5.0% | ||||||||
Apollo Hospitals Enterprise Ltd. |
2,028 | 115,429 | ||||||
Bangkok Dusit Medical Services PCL, NVDR |
163,800 | 116,004 | ||||||
Bangkok Dusit Medical Services PCL, Class F |
17,400 | 12,375 | ||||||
Bumrungrad Hospital PCL, NVDR |
30,600 | 134,176 | ||||||
Celltrion Healthcare Co. Ltd.* |
808 | 55,939 | ||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
1,740 | 76,913 | ||||||
IHH Healthcare Bhd. |
59,400 | 93,812 | ||||||
Mitra Keluarga Karyasehat Tbk. PT(a) |
589,800 | 94,917 | ||||||
Mouwasat Medical Services Co. |
1,542 | 73,916 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H |
8,400 | 15,398 | ||||||
788,879 | ||||||||
Hotels, Restaurants & Leisure – 1.1% | ||||||||
Jubilant Foodworks Ltd. |
1,110 | 54,688 | ||||||
Yum China Holdings, Inc. |
2,214 | 126,375 | ||||||
181,063 | ||||||||
Household Durables – 0.6% | ||||||||
Coway Co. Ltd. |
1,326 | 90,098 | ||||||
Household Products – 0.1% | ||||||||
Hindustan Unilever Ltd. |
528 | 16,875 | ||||||
Independent Power and Renewable Electricity Producers – 0.2% |
||||||||
Unipro PJSC |
846,000 | 32,523 | ||||||
Industrial Conglomerates – 0.4% | ||||||||
Enka Insaat ve Sanayi A/S |
59,766 | 68,374 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 135 |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – 0.5% | ||||||||
Ping An Insurance Group Co. of China Ltd., Class H |
12,000 | $ | 86,232 | |||||
Interactive Media & Services – 3.9% | ||||||||
Baidu, Inc., ADR* |
264 | 42,831 | ||||||
Tencent Holdings Ltd. |
9,400 | 581,228 | ||||||
624,059 | ||||||||
Internet & Direct Marketing Retail – 6.0% | ||||||||
Alibaba Group Holding Ltd., ADR* |
4,872 | 803,588 | ||||||
JD.com, Inc., ADR* |
1,314 | 102,860 | ||||||
Pinduoduo, Inc., ADR* |
480 | 42,681 | ||||||
949,129 | ||||||||
IT Services – 3.6% | ||||||||
Infosys Ltd. |
4,854 | 108,108 | ||||||
Mphasis Ltd. |
210 | 9,074 | ||||||
Samsung SDS Co. Ltd. |
174 | 22,782 | ||||||
Tata Consultancy Services Ltd. |
7,020 | 318,534 | ||||||
Tech Mahindra Ltd. |
5,328 | 105,153 | ||||||
563,651 | ||||||||
Life Sciences Tools & Services – 0.0%(b) | ||||||||
Divi’s Laboratories Ltd. |
84 | 5,777 | ||||||
Marine – 0.7% | ||||||||
MISC Bhd. |
4,200 | 7,171 | ||||||
Orient Overseas International Ltd. |
5,500 | 101,600 | ||||||
108,771 | ||||||||
Metals & Mining – 1.1% | ||||||||
Polyus PJSC |
546 | 108,298 | ||||||
Vale SA |
5,400 | 68,599 | ||||||
176,897 | ||||||||
Multiline Retail – 0.0%(b) | ||||||||
Robinson PCL* (c) |
600 | 353 | ||||||
Multi-Utilities – 0.7% | ||||||||
Qatar Electricity & Water Co. QSC |
24,546 | 113,258 | ||||||
Oil, Gas & Consumable Fuels – 2.5% | ||||||||
China Shenhua Energy Co. Ltd., Class H |
66,000 | 142,197 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Petroleo Brasileiro SA (Preference) |
1,200 | $ | 5,801 | |||||
Petronas Dagangan Bhd. |
16,200 | 79,651 | ||||||
Qatar Fuel QSC |
16,242 | 82,035 | ||||||
Surgutneftegas PJSC (Preference) |
156,600 | 85,239 | ||||||
394,923 | ||||||||
Personal Products – 0.0%(b) | ||||||||
Hengan International Group Co. Ltd. |
500 | 2,613 | ||||||
Pharmaceuticals – 2.8% | ||||||||
Alkem Laboratories Ltd. |
2,328 | 112,252 | ||||||
Cadila Healthcare Ltd. |
5,370 | 36,058 | ||||||
Dr Reddy’s Laboratories Ltd. |
552 | 34,346 | ||||||
Lupin Ltd. |
2,262 | 27,879 | ||||||
Richter Gedeon Nyrt. |
2,760 | 77,391 | ||||||
Sino Biopharmaceutical Ltd. |
90,000 | 66,640 | ||||||
Yuhan Corp. |
1,620 | 83,041 | ||||||
437,607 | ||||||||
Professional Services – 0.4% | ||||||||
51job, Inc., ADR* |
1,134 | 67,541 | ||||||
Road & Rail – 0.4% | ||||||||
CJ Logistics Corp.* |
546 | 66,349 | ||||||
Semiconductors & Semiconductor Equipment – 8.4% | ||||||||
MediaTek, Inc. |
1,600 | 52,531 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
60,000 | 1,272,992 | ||||||
1,325,523 | ||||||||
Specialty Retail – 2.8% | ||||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
98,028 | 114,224 | ||||||
Home Product Center PCL, NVDR |
251,600 | 110,702 | ||||||
Jarir Marketing Co. |
2,154 | 116,460 | ||||||
Zhongsheng Group Holdings Ltd. |
10,500 | 94,957 | ||||||
436,343 | ||||||||
Technology Hardware, Storage & Peripherals – 3.6% | ||||||||
Lite-On Technology Corp. |
7,000 | 15,430 | ||||||
Samsung Electronics Co. Ltd. |
9,312 | 556,226 | ||||||
571,656 |
See Accompanying Notes to the Financial Statements.
136 | FLEXSHARES ANNUAL REPORT |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – 0.3% | ||||||||
Li Ning Co. Ltd. |
500 | $ | 5,560 | |||||
Page Industries Ltd. |
90 | 45,235 | ||||||
50,795 | ||||||||
Thrifts & Mortgage Finance – 0.1% | ||||||||
Housing Development Finance Corp. Ltd. |
318 | 12,081 | ||||||
Tobacco – 0.6% | ||||||||
KT&G Corp. |
1,398 | 97,024 | ||||||
Transportation Infrastructure – 0.8% | ||||||||
Westports Holdings Bhd. |
114,600 | 123,705 | ||||||
Water Utilities – 0.5% | ||||||||
Guangdong Investment Ltd. |
62,000 | 78,107 | ||||||
Wireless Telecommunication Services – 5.2% | ||||||||
Advanced Info Service PCL, NVDR |
16,800 | 95,689 | ||||||
Far EasTone Telecommunications Co. Ltd. |
38,000 | 83,629 | ||||||
Globe Telecom, Inc. |
1,950 | 115,894 | ||||||
Intouch Holdings PCL, NVDR |
54,000 | 122,459 | ||||||
Maxis Bhd. |
71,400 | 80,521 | ||||||
Mobile Telecommunications Co. KSCP |
42,696 | 84,415 | ||||||
PLDT, Inc. |
3,060 | 99,673 | ||||||
Taiwan Mobile Co. Ltd. |
25,000 | 88,192 | ||||||
Vodacom Group Ltd. |
5,736 | 51,164 | ||||||
821,636 | ||||||||
Total
Common Stocks (Cost $14,649,196) |
|
15,685,907 | ||||||
Total
Investments – 99.0% (Cost $14,649,196) |
|
15,685,907 | ||||||
Other assets less liabilities – 1.0% |
|
157,784 | ||||||
NET ASSETS – 100.0% |
|
$ | 15,843,691 |
* |
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. |
(b) |
Represents less than 0.05% of net assets. |
(c) |
Security fair valued as of October 31, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at October 31, 2021 amounted to $353, which represents approximately 0.00% of net assets of the Fund. |
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, 2021, 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 |
$ | 1,953,629 | ||
Aggregate gross unrealized depreciation |
(972,600 | ) | ||
Net unrealized appreciation |
$ | 981,029 | ||
Federal income tax cost |
$ | 14,703,259 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 137 |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
Futures Contracts
FlexShares® Emerging Markets Quality Low Volatility Index Fund had the following open futures contracts as of October 31, 2021:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Depreciation* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI Emerging Markets E-Mini Index |
3 | 12/17/2021 | USD | $ | 189,300 | $ | (1,621 | ) |
* |
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® Emerging Markets Quality Low Volatility Index Fund had the following outstanding contracts as of October 31, 2021:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) |
||||||||||||||||
USD |
5,145 | JPMorgan Chase Bank | HKD | 40,000 | 12/15/2021 | $ | 2 | |||||||||||||
Net unrealized appreciation |
|
$ | 2 |
Abbreviations:
HKD — Hong Kong Dollar
USD — US Dollar
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, 2021:
Brazil |
1.2 | % | ||
China |
25.7 | |||
Egypt |
0.9 | |||
Hungary |
0.5 | |||
India |
9.7 | |||
Indonesia |
0.7 | |||
Kuwait |
3.1 | |||
Malaysia |
5.4 | |||
Mexico |
0.5 | |||
Morocco |
1.9 | |||
Philippines |
2.3 | |||
Qatar |
4.8 | |||
Russia |
2.5 | |||
Saudi Arabia |
6.8 | |||
South Africa |
0.3 | |||
South Korea |
8.7 | |||
Taiwan |
16.8 | |||
Thailand |
3.7 | |||
Turkey |
1.0 | |||
United Arab Emirates |
2.5 | |||
Other1 |
1.0 | |||
100.0 | % |
1 |
Includes any non-equity securities and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
138 | FLEXSHARES ANNUAL REPORT |
FlexShares® Emerging Markets Quality Low Volatility Index Fund (cont.)
Security Type | % of Net Assets | |||
Common Stocks |
99.0 | % | ||
Others(1) |
1.0 | |||
100.0 | % |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 139 |
Schedule of Investments
FlexShares® Morningstar US Market Factor Tilt Index Fund
October 31, 2021
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.3% | ||||||||
Aerospace & Defense – 1.2% | ||||||||
AAR Corp.* |
2,895 | $ | 102,396 | |||||
Aerojet Rocketdyne Holdings, Inc.(a) |
2,123 | 93,433 | ||||||
AeroVironment, Inc.* (a) |
772 | 68,793 | ||||||
Axon Enterprise, Inc.* |
2,509 | 451,520 | ||||||
Boeing Co. (The)* |
14,475 | 2,996,759 | ||||||
BWX Technologies, Inc.(a) |
2,509 | 142,361 | ||||||
Curtiss-Wright Corp. |
2,702 | 344,991 | ||||||
Ducommun, Inc.* |
193 | 9,339 | ||||||
General Dynamics Corp. |
7,334 | 1,486,969 | ||||||
HEICO Corp. |
2,316 | 322,827 | ||||||
HEICO Corp., Class A |
1,930 | 242,562 | ||||||
Hexcel Corp.* (a) |
5,404 | 306,623 | ||||||
Howmet Aerospace, Inc. |
12,738 | 378,191 | ||||||
Huntington Ingalls Industries, Inc. |
1,351 | 273,888 | ||||||
Kaman Corp.(a) |
5,018 | 179,594 | ||||||
Kratos Defense & Security Solutions, Inc.* (a) |
2,702 | 57,796 | ||||||
L3Harris Technologies, Inc.(a) |
6,562 | 1,512,804 | ||||||
Lockheed Martin Corp. |
7,913 | 2,629,648 | ||||||
Maxar Technologies, Inc.(a) |
4,825 | 128,104 | ||||||
Mercury Systems, Inc.* |
5,018 | 258,628 | ||||||
Moog, Inc., Class A |
7,527 | 568,514 | ||||||
National Presto Industries, Inc. |
193 | 16,048 | ||||||
Northrop Grumman Corp. |
5,018 | 1,792,530 | ||||||
Parsons Corp.* |
2,702 | 93,597 | ||||||
Raytheon Technologies Corp. |
49,601 | 4,407,545 | ||||||
Spirit AeroSystems Holdings, Inc., Class A |
7,913 | 326,728 | ||||||
Textron, Inc. |
8,106 | 598,628 | ||||||
TransDigm Group, Inc.* |
1,737 | 1,083,575 | ||||||
Triumph Group, Inc.* |
9,264 | 189,449 | ||||||
Vectrus, Inc.* |
1,158 | 56,082 | ||||||
Virgin Galactic Holdings, Inc.* (a) |
6,948 | 130,275 | ||||||
21,250,197 |
Investments | Shares | Value | ||||||
Air Freight & Logistics – 0.5% | ||||||||
Air Transport Services Group, Inc.* (a) |
17,949 | $ | 446,751 | |||||
Atlas Air Worldwide Holdings, Inc.* |
7,141 | 579,278 | ||||||
CH Robinson Worldwide, Inc. |
4,053 | 393,100 | ||||||
Echo Global Logistics, Inc.* |
3,088 | 148,934 | ||||||
Expeditors International of Washington, Inc. |
4,439 | 547,151 | ||||||
FedEx Corp. |
7,913 | 1,863,749 | ||||||
Forward Air Corp.(a) |
965 | 97,040 | ||||||
Hub Group, Inc., Class A* (a) |
9,457 | 743,037 | ||||||
United Parcel Service, Inc., Class B |
19,493 | 4,161,171 | ||||||
8,980,211 | ||||||||
Airlines – 0.2% | ||||||||
Alaska Air Group, Inc.* |
5,404 | 285,331 | ||||||
Allegiant Travel Co.* (a) |
965 | 169,136 | ||||||
American Airlines Group, Inc.* (a) |
27,599 | 529,901 | ||||||
Delta Air Lines, Inc.* |
14,282 | 558,855 | ||||||
Hawaiian Holdings, Inc.* (a) |
7,334 | 141,913 | ||||||
JetBlue Airways Corp.* (a) |
23,546 | 330,350 | ||||||
Mesa Air Group, Inc.* (a) |
4,439 | 33,470 | ||||||
SkyWest, Inc.* (a) |
5,404 | 232,534 | ||||||
Southwest Airlines Co.* (a) |
16,984 | 803,003 | ||||||
Spirit Airlines, Inc.* |
193 | 4,217 | ||||||
United Airlines Holdings, Inc.* (a) |
5,983 | 276,056 | ||||||
3,364,766 | ||||||||
Auto Components – 0.5% | ||||||||
Adient plc* (a) |
24,318 | 1,012,115 | ||||||
American Axle & Manufacturing Holdings, Inc.* (a) |
11,387 | 103,394 | ||||||
Aptiv plc* (a) |
6,562 | 1,134,504 | ||||||
Autoliv, Inc.(a) |
4,053 | 392,533 | ||||||
BorgWarner, Inc. |
10,808 | 487,117 | ||||||
Dana, Inc.(a) |
28,564 | 633,835 | ||||||
Dorman Products, Inc.* (a) |
965 | 100,727 |
See Accompanying Notes to the Financial Statements.
140 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Fox Factory Holding Corp.* (a) |
1,930 | $ | 310,633 | |||||
Gentex Corp.(a) |
10,615 | 375,665 | ||||||
Gentherm, Inc.* (a) |
1,158 | 85,263 | ||||||
Goodyear Tire & Rubber Co. (The)* |
58,865 | 1,125,499 | ||||||
LCI Industries(a) |
1,930 | 269,505 | ||||||
Lear Corp. |
2,509 | 431,172 | ||||||
Luminar Technologies, Inc.* (a) |
2,895 | 47,449 | ||||||
Modine Manufacturing Co.* |
772 | 8,492 | ||||||
Patrick Industries, Inc. |
1,737 | 135,330 | ||||||
Standard Motor Products, Inc.(a) |
1,351 | 64,713 | ||||||
Tenneco, Inc., Class A* |
21,037 | 279,161 | ||||||
Veoneer, Inc.* (a) |
24,511 | 862,787 | ||||||
Visteon Corp.* |
2,702 | 305,812 | ||||||
8,165,706 | ||||||||
Automobiles – 1.8% | ||||||||
Ford Motor Co.* |
135,100 | 2,307,508 | ||||||
General Motors Co.* |
49,987 | 2,720,792 | ||||||
Harley-Davidson, Inc. |
6,948 | 253,533 | ||||||
Tesla, Inc.* |
22,388 | 24,940,232 | ||||||
Thor Industries, Inc.(a) |
3,088 | 314,852 | ||||||
Winnebago Industries, Inc. |
6,562 | 444,182 | ||||||
30,981,099 | ||||||||
Banks – 6.6% | ||||||||
1st Source Corp. |
5,597 | 270,223 | ||||||
Allegiance Bancshares, Inc. |
4,053 | 158,756 | ||||||
Ameris Bancorp(a) |
14,475 | 758,345 | ||||||
Associated Banc-Corp. |
33,775 | 752,507 | ||||||
Atlantic Union Bankshares Corp. |
19,686 | 706,137 | ||||||
Banc of California, Inc.(a) |
3,860 | 78,474 | ||||||
BancFirst Corp.(a) |
3,474 | 225,845 | ||||||
Bancorp, Inc. (The)* |
13,703 | 418,627 | ||||||
Bank of America Corp. |
251,286 | 12,006,445 | ||||||
Bank of Hawaii Corp.(a) |
2,509 | 212,010 | ||||||
Bank OZK |
29,722 | 1,327,682 | ||||||
BankUnited, Inc.(a) |
22,967 | 931,541 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Banner Corp. |
5,790 | $ | 334,430 | |||||
Berkshire Hills Bancorp, Inc.(a) |
4,053 | 110,039 | ||||||
BOK Financial Corp. |
7,913 | 800,558 | ||||||
Brookline Bancorp, Inc.(a) |
2,895 | 46,465 | ||||||
Bryn Mawr Bank Corp. |
579 | 26,831 | ||||||
Cadence Bank(a) |
47,555 | 1,380,052 | ||||||
Camden National Corp. |
5,211 | 248,044 | ||||||
Cathay General Bancorp(a) |
15,247 | 643,271 | ||||||
Central Pacific Financial Corp. |
4,053 | 111,417 | ||||||
CIT Group, Inc.(a) |
23,353 | 1,156,674 | ||||||
Citigroup, Inc. |
68,129 | 4,711,802 | ||||||
Citizens Financial Group, Inc. |
15,826 | 749,836 | ||||||
City Holding Co.(a) |
579 | 46,077 | ||||||
Columbia Banking System, Inc.(a) |
6,369 | 217,374 | ||||||
Comerica, Inc. |
6,369 | 541,938 | ||||||
Commerce Bancshares, Inc.(a) |
3,088 | 217,735 | ||||||
Community Bank System, Inc.(a) |
3,474 | 248,982 | ||||||
Community Trust Bancorp, Inc.(a) |
2,123 | 92,733 | ||||||
ConnectOne Bancorp, Inc. |
5,211 | 175,767 | ||||||
CrossFirst Bankshares, Inc.* (a) |
2,702 | 38,449 | ||||||
Cullen/Frost Bankers, Inc. |
3,088 | 399,896 | ||||||
Customers Bancorp, Inc.* |
5,018 | 267,409 | ||||||
CVB Financial Corp. |
23,546 | 471,391 | ||||||
Dime Community Bancshares, Inc. |
11,773 | 420,061 | ||||||
Eagle Bancorp, Inc.(a) |
5,790 | 327,656 | ||||||
East West Bancorp, Inc. |
6,562 | 521,548 | ||||||
Eastern Bankshares, Inc. |
6,176 | 128,275 | ||||||
Enterprise Financial Services Corp. |
11,387 | 535,417 | ||||||
FB Financial Corp. |
1,351 | 61,241 | ||||||
Fifth Third Bancorp |
25,669 | 1,117,371 | ||||||
Financial Institutions, Inc. |
4,825 | 154,014 | ||||||
First Bancorp/NC(a) |
5,983 | 289,697 | ||||||
First Bancorp/PR |
57,707 | 787,700 | ||||||
First Bancshares, Inc. (The) |
4,439 | 178,670 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 141 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
First Busey Corp. |
14,475 | $ | 368,968 | |||||
First Citizens BancShares, Inc., Class A(a) |
386 | 314,165 | ||||||
First Commonwealth Financial Corp. |
25,476 | 389,783 | ||||||
First Financial Bancorp(a) |
16,984 | 403,879 | ||||||
First Financial Bankshares, Inc.(a) |
6,755 | 342,614 | ||||||
First Financial Corp. |
3,860 | 165,401 | ||||||
First Foundation, Inc.(a) |
10,229 | 272,194 | ||||||
First Hawaiian, Inc. |
25,862 | 713,533 | ||||||
First Horizon Corp. |
26,055 | 442,153 | ||||||
First Interstate BancSystem, Inc., Class A(a) |
2,509 | 104,299 | ||||||
First Merchants Corp. |
14,089 | 585,821 | ||||||
First Midwest Bancorp, Inc. |
19,879 | 382,671 | ||||||
First Republic Bank |
4,439 | 960,289 | ||||||
Flushing Financial Corp.(a) |
5,404 | 129,804 | ||||||
FNB Corp.(a) |
64,269 | 748,734 | ||||||
Fulton Financial Corp. |
30,687 | 494,061 | ||||||
German American Bancorp, Inc.(a) |
772 | 30,432 | ||||||
Glacier Bancorp, Inc. |
4,825 | 266,774 | ||||||
Great Southern Bancorp, Inc. |
2,509 | 141,583 | ||||||
Great Western Bancorp, Inc.(a) |
6,755 | 230,008 | ||||||
Hancock Whitney Corp. |
19,686 | 974,063 | ||||||
Hanmi Financial Corp. |
7,720 | 171,307 | ||||||
HarborOne Bancorp, Inc. |
2,316 | 33,281 | ||||||
Heartland Financial USA, Inc. |
9,457 | 473,985 | ||||||
Heritage Commerce Corp.(a) |
13,703 | 164,299 | ||||||
Heritage Financial Corp.(a) |
3,474 | 86,294 | ||||||
Hilltop Holdings, Inc.(a) |
17,370 | 615,593 | ||||||
Home BancShares, Inc.(a) |
36,863 | 875,865 | ||||||
Hope Bancorp, Inc.(a) |
28,757 | 419,565 | ||||||
Horizon Bancorp, Inc.(a) |
12,352 | 235,553 | ||||||
Huntington Bancshares, Inc. |
47,671 | 750,341 | ||||||
Independent Bank Corp. — MA |
1,158 | 97,851 | ||||||
Independent Bank Corp. — MI |
11,773 | 265,246 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Independent Bank Group, Inc. |
10,229 | $ | 739,454 | |||||
International Bancshares Corp.(a) |
14,475 | 613,740 | ||||||
Investors Bancorp, Inc. |
58,479 | 894,729 | ||||||
JPMorgan Chase & Co. |
101,132 | 17,181,315 | ||||||
KeyCorp |
36,091 | 839,837 | ||||||
Lakeland Bancorp, Inc.(a) |
12,352 | 222,089 | ||||||
Lakeland Financial Corp.(a) |
772 | 55,484 | ||||||
Live Oak Bancshares, Inc.(a) |
965 | 86,059 | ||||||
M&T Bank Corp.(a) |
4,632 | 681,460 | ||||||
Metropolitan Bank Holding Corp.* |
1,737 | 157,824 | ||||||
Midland States Bancorp, Inc. |
4,825 | 123,809 | ||||||
National Bank Holdings Corp., Class A(a) |
1,158 | 50,222 | ||||||
NBT Bancorp, Inc.(a) |
6,369 | 233,679 | ||||||
Nicolet Bankshares, Inc.* (a) |
3,860 | 277,495 | ||||||
OceanFirst Financial Corp.(a) |
16,791 | 372,256 | ||||||
OFG Bancorp |
15,440 | 399,896 | ||||||
Old National Bancorp(a) |
43,811 | 748,292 | ||||||
Pacific Premier Bancorp, Inc. |
19,107 | 802,303 | ||||||
PacWest Bancorp |
27,792 | 1,319,286 | ||||||
Park National Corp.(a) |
965 | 124,089 | ||||||
Peoples Bancorp, Inc. |
6,369 | 203,553 | ||||||
People’s United Financial, Inc. |
21,809 | 373,806 | ||||||
Pinnacle Financial Partners, Inc. |
18,335 | 1,770,611 | ||||||
PNC Financial Services Group, Inc. (The) |
14,282 | 3,013,930 | ||||||
Popular, Inc. |
20,458 | 1,666,099 | ||||||
Preferred Bank(a) |
2,316 | 158,808 | ||||||
Prosperity Bancshares, Inc. |
20,072 | 1,511,622 | ||||||
QCR Holdings, Inc.(a) |
1,737 | 95,778 | ||||||
Regions Financial Corp. |
35,705 | 845,494 | ||||||
Renasant Corp.(a) |
6,562 | 245,484 | ||||||
S&T Bancorp, Inc. |
4,632 | 141,554 | ||||||
Sandy Spring Bancorp, Inc. |
9,457 | 448,829 | ||||||
Seacoast Banking Corp. of Florida(a) |
5,018 | 182,806 | ||||||
ServisFirst Bancshares, Inc.(a) |
1,544 | 123,999 |
See Accompanying Notes to the Financial Statements.
142 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Signature Bank |
2,123 | $ | 632,272 | |||||
Silvergate Capital Corp., Class A* |
193 | 30,228 | ||||||
Simmons First National Corp., Class A |
21,037 | 628,796 | ||||||
South State Corp.(a) |
1,544 | 120,571 | ||||||
Southside Bancshares, Inc.(a) |
965 | 39,874 | ||||||
Sterling Bancorp(a) |
48,250 | 1,227,962 | ||||||
Stock Yards Bancorp, Inc.(a) |
772 | 47,285 | ||||||
SVB Financial Group* |
1,544 | 1,107,666 | ||||||
Synovus Financial Corp. |
35,705 | 1,663,496 | ||||||
Texas Capital Bancshares, Inc.* |
9,843 | 596,486 | ||||||
Tompkins Financial Corp. |
386 | 31,694 | ||||||
Towne Bank |
14,282 | 450,169 | ||||||
TriCo Bancshares |
772 | 33,837 | ||||||
TriState Capital Holdings, Inc.* |
10,615 | 318,981 | ||||||
Triumph Bancorp, Inc.* (a) |
579 | 67,917 | ||||||
Truist Financial Corp. |
45,355 | 2,878,682 | ||||||
Trustmark Corp.(a) |
16,405 | 521,843 | ||||||
UMB Financial Corp. |
1,351 | 133,506 | ||||||
Umpqua Holdings Corp.(a) |
59,251 | 1,211,683 | ||||||
United Bankshares, Inc.(a) |
26,827 | 992,331 | ||||||
United Community Banks, Inc. |
22,195 | 773,274 | ||||||
Univest Financial Corp. |
5,983 | 171,712 | ||||||
US Bancorp |
46,127 | 2,784,687 | ||||||
Valley National Bancorp(a) |
86,078 | 1,141,394 | ||||||
Veritex Holdings, Inc. |
6,176 | 252,907 | ||||||
Washington Trust Bancorp, Inc.(a) |
5,404 | 295,383 | ||||||
Webster Financial Corp.(a) |
18,914 | 1,058,427 | ||||||
Wells Fargo & Co. |
136,644 | 6,990,707 | ||||||
WesBanco, Inc.(a) |
11,387 | 395,926 | ||||||
Westamerica Bancorp |
2,895 | 161,425 | ||||||
Western Alliance Bancorp(a) |
4,825 | 560,134 | ||||||
Wintrust Financial Corp. |
11,966 | 1,058,991 | ||||||
Zions Bancorp NA |
7,720 | 486,283 | ||||||
113,628,041 |
Investments | Shares | Value | ||||||
Beverages – 1.0% | ||||||||
Boston Beer Co., Inc. (The), Class A* (a) |
193 | $ | 95,049 | |||||
Brown-Forman Corp., Class A(a) |
1,544 | 98,862 | ||||||
Brown-Forman Corp., Class B |
4,825 | 327,569 | ||||||
Celsius Holdings, Inc.* |
1,930 | 186,284 | ||||||
Coca-Cola Co. (The) |
108,273 | 6,103,349 | ||||||
Coca-Cola Consolidated, Inc.(a) |
772 | 309,881 | ||||||
Constellation Brands, Inc., Class A |
5,018 | 1,087,952 | ||||||
Keurig Dr Pepper, Inc. |
28,757 | 1,037,840 | ||||||
Molson Coors Beverage Co., Class B(a) |
7,334 | 323,356 | ||||||
Monster Beverage Corp.* |
11,580 | 984,300 | ||||||
National Beverage Corp.(a) |
772 | 43,541 | ||||||
PepsiCo, Inc. |
38,793 | 6,268,949 | ||||||
16,866,932 | ||||||||
Biotechnology – 2.4% | ||||||||
AbbVie, Inc. |
58,865 | 6,750,050 | ||||||
Abeona Therapeutics, Inc.* (a) |
63,690 | 51,735 | ||||||
ACADIA Pharmaceuticals, Inc.* (a) |
14,282 | 256,362 | ||||||
Acceleron Pharma, Inc.* |
1,351 | 235,317 | ||||||
Adamas Pharmaceuticals, Inc.* |
17,949 | 145,566 | ||||||
Agenus, Inc.* |
2,316 | 8,893 | ||||||
Agios Pharmaceuticals, Inc.* (a) |
4,825 | 226,775 | ||||||
Albireo Pharma, Inc.* |
4,246 | 124,068 | ||||||
Aldeyra Therapeutics, Inc.* |
10,615 | 96,597 | ||||||
Alector, Inc.* (a) |
5,211 | 113,287 | ||||||
Alkermes plc* (a) |
5,211 | 157,841 | ||||||
Allakos, Inc.* (a) |
3,088 | 310,591 | ||||||
Allogene Therapeutics, Inc.* (a) |
6,562 | 113,129 | ||||||
Alnylam Pharmaceuticals, Inc.* |
3,860 | 615,902 | ||||||
Altimmune, Inc.* (a) |
7,034 | 75,967 | ||||||
Amgen, Inc. |
18,721 | 3,874,685 | ||||||
Amicus Therapeutics, Inc.* (a) |
17,756 | 186,438 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 143 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
Anavex Life Sciences Corp.* (a) |
5,597 | $ | 104,888 | |||||
Anika Therapeutics, Inc.* (a) |
3,281 | 136,654 | ||||||
Apellis Pharmaceuticals, Inc.* (a) |
1,158 | 35,597 | ||||||
Arena Pharmaceuticals, Inc.* |
2,123 | 121,839 | ||||||
Arrowhead Pharmaceuticals, Inc.* |
3,474 | 221,711 | ||||||
Atara Biotherapeutics, Inc.* |
8,492 | 131,456 | ||||||
Beam Therapeutics, Inc.* (a) |
3,088 | 274,122 | ||||||
BioAtla, Inc.* (a) |
2,509 | 73,338 | ||||||
BioCryst Pharmaceuticals, Inc.* (a) |
16,791 | 250,690 | ||||||
Biogen, Inc.* |
4,825 | 1,286,731 | ||||||
BioMarin Pharmaceutical, Inc.* |
3,281 | 259,954 | ||||||
Bioxcel Therapeutics, Inc.* (a) |
193 | 5,624 | ||||||
Blueprint Medicines Corp.* (a) |
3,667 | 412,501 | ||||||
Bridgebio Pharma, Inc.* |
386 | 19,061 | ||||||
C4 Therapeutics, Inc.* |
2,895 | 128,596 | ||||||
CareDx, Inc.* (a) |
1,351 | 68,901 | ||||||
Catalyst Pharmaceuticals, Inc.* |
39,951 | 235,711 | ||||||
Coherus Biosciences, Inc.* (a) |
11,580 | 193,733 | ||||||
Crinetics Pharmaceuticals, Inc.* (a) |
7,334 | 182,837 | ||||||
CRISPR Therapeutics AG* (a) |
2,702 | 246,774 | ||||||
Curis, Inc.* (a) |
7,720 | 50,180 | ||||||
Cytokinetics, Inc.* |
2,123 | 74,114 | ||||||
CytomX Therapeutics, Inc.* (a) |
19,493 | 115,593 | ||||||
Denali Therapeutics, Inc.* (a) |
2,123 | 102,647 | ||||||
DermTech, Inc.* (a) |
2,509 | 68,621 | ||||||
Dicerna Pharmaceuticals, Inc.* (a) |
2,316 | 48,196 | ||||||
Dynavax Technologies Corp.* (a) |
6,369 | 127,189 | ||||||
Eagle Pharmaceuticals, Inc.* (a) |
1,737 | 90,967 | ||||||
Editas Medicine, Inc.* (a) |
4,053 | 148,826 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
Emergent BioSolutions, Inc.* (a) |
9,071 | $ | 432,415 | |||||
Enanta Pharmaceuticals, Inc.* |
1,930 | 165,690 | ||||||
Epizyme, Inc.* (a) |
2,509 | 10,538 | ||||||
Exact Sciences Corp.* (a) |
3,474 | 330,794 | ||||||
Exelixis, Inc.* |
9,650 | 207,572 | ||||||
Fate Therapeutics, Inc.* (a) |
1,930 | 103,834 | ||||||
Gilead Sciences, Inc. |
40,723 | 2,642,108 | ||||||
Gritstone bio, Inc.* |
5,018 | 55,148 | ||||||
Halozyme Therapeutics, Inc.* (a) |
4,053 | 154,298 | ||||||
Heron Therapeutics, Inc.* (a) |
16,019 | 176,369 | ||||||
Homology Medicines, Inc.* (a) |
193 | 1,106 | ||||||
Horizon Therapeutics plc* |
7,141 | 856,277 | ||||||
Ideaya Biosciences, Inc.* |
2,509 | 53,793 | ||||||
ImmunoGen, Inc.* (a) |
24,318 | 146,638 | ||||||
Incyte Corp.* |
4,439 | 297,324 | ||||||
Inmune Bio, Inc.* (a) |
2,316 | 42,591 | ||||||
Inovio Pharmaceuticals, Inc.* (a) |
19,300 | 137,802 | ||||||
Insmed, Inc.* |
2,895 | 87,284 | ||||||
Intellia Therapeutics, Inc.* (a) |
4,053 | 538,968 | ||||||
Invitae Corp.* (a) |
13,124 | 347,786 | ||||||
Ionis Pharmaceuticals, Inc.* |
3,667 | 116,867 | ||||||
Iovance Biotherapeutics, Inc.* |
10,808 | 262,742 | ||||||
Ironwood Pharmaceuticals, Inc.* (a) |
15,054 | 192,240 | ||||||
IVERIC bio, Inc.* (a) |
7,720 | 136,644 | ||||||
Kadmon Holdings, Inc.* (a) |
22,967 | 217,038 | ||||||
Kodiak Sciences, Inc.* (a) |
386 | 45,197 | ||||||
Krystal Biotech, Inc.* (a) |
2,702 | 135,343 | ||||||
Kura Oncology, Inc.* |
9,071 | 148,946 | ||||||
Kymera Therapeutics, Inc.* |
2,316 | 136,366 | ||||||
Ligand Pharmaceuticals, Inc.* |
579 | 84,499 | ||||||
MacroGenics, Inc.* |
5,404 | 105,540 | ||||||
Madrigal Pharmaceuticals, Inc.* |
579 | 45,017 | ||||||
MEI Pharma, Inc.* |
39,179 | 110,485 | ||||||
MeiraGTx Holdings plc* (a) |
11,966 | 257,269 | ||||||
Mirati Therapeutics, Inc.* (a) |
965 | 182,404 | ||||||
Moderna, Inc.* |
11,966 | 4,130,783 |
See Accompanying Notes to the Financial Statements.
144 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
Morphic Holding, Inc.* (a) |
1,737 | $ | 99,878 | |||||
Mustang Bio, Inc.* |
52,689 | 118,023 | ||||||
Myriad Genetics, Inc.* |
3,281 | 100,956 | ||||||
Natera, Inc.* |
3,474 | 398,016 | ||||||
Neurocrine Biosciences, Inc.* |
2,509 | 264,474 | ||||||
Novavax, Inc.* (a) |
2,509 | 373,414 | ||||||
Nurix Therapeutics, Inc.* |
3,281 | 109,749 | ||||||
Oncocyte Corp.* (a) |
17,756 | 58,240 | ||||||
OPKO Health, Inc.* (a) |
32,231 | 122,155 | ||||||
Palatin Technologies, Inc.* (a) |
180,262 | 73,547 | ||||||
Precision BioSciences, Inc.* |
965 | 9,158 | ||||||
Prothena Corp. plc* (a) |
1,544 | 85,460 | ||||||
PTC Therapeutics, Inc.* (a) |
386 | 14,641 | ||||||
Regeneron Pharmaceuticals, Inc.* |
3,860 | 2,470,168 | ||||||
REGENXBIO, Inc.* |
5,018 | 177,838 | ||||||
Rigel Pharmaceuticals, Inc.* |
6,948 | 23,345 | ||||||
Sage Therapeutics, Inc.* (a) |
9,457 | 381,685 | ||||||
Sangamo Therapeutics, Inc.* (a) |
13,317 | 108,134 | ||||||
Sarepta Therapeutics, Inc.* |
5,790 | 458,163 | ||||||
Seagen, Inc.* |
4,053 | 714,665 | ||||||
Selecta Biosciences, Inc.* (a) |
15,054 | 54,044 | ||||||
Sorrento Therapeutics, Inc.* (a) |
20,458 | 140,342 | ||||||
Syndax Pharmaceuticals, Inc.* (a) |
3,860 | 75,077 | ||||||
TG Therapeutics, Inc.* (a) |
2,509 | 78,331 | ||||||
Travere Therapeutics, Inc.* (a) |
1,158 | 33,362 | ||||||
Trevena, Inc.* (a) |
69,287 | 69,980 | ||||||
Twist Bioscience Corp.* (a) |
3,088 | 366,854 | ||||||
Ultragenyx Pharmaceutical, Inc.* |
1,930 | 161,966 | ||||||
United Therapeutics Corp.* |
2,123 | 404,983 | ||||||
Vanda Pharmaceuticals, Inc.* |
1,544 | 26,433 | ||||||
Vaxart, Inc.* (a) |
11,387 | 76,407 | ||||||
Veracyte, Inc.* (a) |
1,544 | 73,927 | ||||||
Vertex Pharmaceuticals, Inc.* |
7,720 | 1,427,660 | ||||||
Viking Therapeutics, Inc.* (a) |
579 | 3,370 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
Vir Biotechnology, Inc.* (a) |
5,211 | $ | 196,611 | |||||
XBiotech, Inc.(a) |
579 | 8,488 | ||||||
XOMA Corp.* (a) |
3,281 | 82,025 | ||||||
Y-mAbs Therapeutics, Inc.* |
193 | 4,740 | ||||||
41,102,278 | ||||||||
Building Products – 0.7% | ||||||||
A O Smith Corp. |
3,667 | 267,948 | ||||||
AAON, Inc.(a) |
2,702 | 193,598 | ||||||
Advanced Drainage Systems, Inc. |
1,737 | 195,934 | ||||||
Allegion plc |
2,895 | 371,428 | ||||||
American Woodmark Corp.* |
193 | 13,267 | ||||||
Apogee Enterprises, Inc.(a) |
5,211 | 218,497 | ||||||
Armstrong World Industries, Inc. |
2,123 | 224,295 | ||||||
AZEK Co., Inc. (The)* |
4,632 | 169,948 | ||||||
Builders FirstSource, Inc.* (a) |
9,457 | 551,059 | ||||||
Carlisle Cos., Inc. |
1,544 | 344,188 | ||||||
Carrier Global Corp. |
25,476 | 1,330,611 | ||||||
Cornerstone Building Brands, Inc.* (a) |
12,352 | 176,757 | ||||||
Fortune Brands Home & Security, Inc. |
4,439 | 450,115 | ||||||
Gibraltar Industries, Inc.* |
965 | 62,879 | ||||||
Griffon Corp. |
6,948 | 184,053 | ||||||
Insteel Industries, Inc.(a) |
386 | 15,699 | ||||||
JELD-WEN Holding, Inc.* |
17,370 | 476,112 | ||||||
Johnson Controls International plc |
25,090 | 1,840,853 | ||||||
Lennox International, Inc. |
965 | 288,805 | ||||||
Masco Corp. |
7,527 | 493,395 | ||||||
Masonite International Corp.* |
6,755 | 810,668 | ||||||
Owens Corning |
4,439 | 414,647 | ||||||
PGT Innovations, Inc.* |
6,369 | 135,978 | ||||||
Quanex Building Products Corp.(a) |
4,632 | 95,975 | ||||||
Resideo Technologies, Inc.* |
33,775 | 832,892 | ||||||
Simpson Manufacturing Co., Inc. |
1,544 | 163,803 | ||||||
Trane Technologies plc |
5,983 | 1,082,504 | ||||||
Trex Co., Inc.* |
3,860 | 410,704 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 145 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Building Products – (continued) | ||||||||
UFP Industries, Inc.(a) |
1,930 | $ | 157,932 | |||||
Zurn Water Solutions Corp. |
4,825 | 175,051 | ||||||
12,149,595 | ||||||||
Capital Markets – 3.3% | ||||||||
Affiliated Managers Group, Inc.(a) |
10,422 | 1,749,645 | ||||||
Ameriprise Financial, Inc. |
4,053 | 1,224,533 | ||||||
Apollo Global Management, Inc.(a) |
5,211 | 400,986 | ||||||
Ares Management Corp. |
3,860 | 327,096 | ||||||
Artisan Partners Asset Management, Inc., Class A(a) |
15,440 | 764,898 | ||||||
AssetMark Financial Holdings, Inc.* |
4,825 | 123,713 | ||||||
B. Riley Financial, Inc.(a) |
4,053 | 290,438 | ||||||
Bank of New York Mellon Corp. (The) |
25,090 | 1,485,328 | ||||||
BGC Partners, Inc., Class A(a) |
54,426 | 292,268 | ||||||
BlackRock, Inc. |
4,825 | 4,552,194 | ||||||
Blackstone, Inc., Class A |
18,142 | 2,511,216 | ||||||
Blucora, Inc.* |
16,019 | 264,634 | ||||||
Brightsphere Investment Group, Inc. |
6,562 | 196,729 | ||||||
Carlyle Group, Inc. (The) |
3,088 | 173,391 | ||||||
Charles Schwab Corp. (The) |
40,916 | 3,356,339 | ||||||
CME Group, Inc. |
9,071 | 2,000,609 | ||||||
Cohen & Steers, Inc.(a) |
772 | 73,255 | ||||||
Cowen, Inc., Class A(a) |
8,492 | 320,403 | ||||||
Evercore, Inc., Class A(a) |
2,509 | 380,967 | ||||||
FactSet Research Systems, Inc. |
965 | 428,354 | ||||||
Federated Hermes, Inc., Class B(a) |
19,107 | 636,454 | ||||||
Focus Financial Partners, Inc., Class A* (a) |
11,966 | 752,183 | ||||||
Franklin Resources, Inc. |
11,194 | 352,499 | ||||||
GCM Grosvenor, Inc., Class A(a) |
1,930 | 22,098 | ||||||
Goldman Sachs Group, Inc. (The) |
11,387 | 4,706,816 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Greenhill & Co., Inc.(a) |
5,211 | $ | 81,917 | |||||
Hamilton Lane, Inc., Class A(a) |
3,088 | 322,727 | ||||||
Houlihan Lokey, Inc.(a) |
1,737 | 194,683 | ||||||
Interactive Brokers Group, Inc., Class A |
2,895 | 205,111 | ||||||
Intercontinental Exchange, Inc. |
16,598 | 2,298,159 | ||||||
Invesco Ltd. |
16,984 | 431,563 | ||||||
Janus Henderson Group plc(a) |
39,179 | 1,821,823 | ||||||
Jefferies Financial Group, Inc. |
10,422 | 448,146 | ||||||
KKR & Co., Inc. |
15,826 | 1,260,857 | ||||||
LPL Financial Holdings, Inc. |
3,088 | 506,494 | ||||||
MarketAxess Holdings, Inc. |
1,158 | 473,240 | ||||||
Moelis & Co., Class A(a) |
1,544 | 112,311 | ||||||
Moody’s Corp. |
4,825 | 1,950,024 | ||||||
Morgan Stanley |
49,408 | 5,078,154 | ||||||
Morningstar, Inc. |
579 | 183,398 | ||||||
MSCI, Inc. |
2,123 | 1,411,540 | ||||||
Nasdaq, Inc. |
3,088 | 648,079 | ||||||
Northern Trust Corp.(b) |
7,334 | 902,375 | ||||||
Open Lending Corp., Class A* |
7,334 | 231,168 | ||||||
Piper Sandler Cos.(a) |
3,474 | 572,133 | ||||||
PJT Partners, Inc., Class A(a) |
1,544 | 126,284 | ||||||
Raymond James Financial, Inc. |
5,790 | 570,836 | ||||||
S&P Global, Inc. |
6,562 | 3,111,438 | ||||||
Sculptor Capital Management, Inc. |
3,281 | 86,947 | ||||||
SEI Investments Co.(a) |
3,281 | 206,834 | ||||||
State Street Corp. |
11,580 | 1,141,209 | ||||||
StepStone Group, Inc., Class A |
2,316 | 108,806 | ||||||
Stifel Financial Corp. |
23,160 | 1,687,669 | ||||||
StoneX Group, Inc.* |
4,825 | 333,456 | ||||||
T. Rowe Price Group, Inc. |
7,527 | 1,632,456 | ||||||
Tradeweb Markets, Inc., Class A |
4,439 | 395,515 | ||||||
Victory Capital Holdings, Inc., Class A(a) |
1,158 | 43,888 | ||||||
Virtu Financial, Inc., Class A |
20,844 | 518,599 |
See Accompanying Notes to the Financial Statements.
146 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Virtus Investment Partners, Inc.(a) |
772 | $ | 247,040 | |||||
WisdomTree Investments, Inc.(a) |
20,651 | 131,960 | ||||||
56,863,885 | ||||||||
Chemicals – 1.9% | ||||||||
AdvanSix, Inc.* |
8,878 | 431,471 | ||||||
Air Products and Chemicals, Inc. |
5,597 | 1,678,037 | ||||||
Albemarle Corp. |
3,281 | 821,792 | ||||||
Ashland Global Holdings, Inc. |
2,123 | 203,829 | ||||||
Avient Corp.(a) |
2,895 | 155,983 | ||||||
Axalta Coating Systems Ltd.* |
10,808 | 337,102 | ||||||
Balchem Corp.(a) |
2,123 | 325,010 | ||||||
Cabot Corp. |
13,510 | 720,758 | ||||||
Celanese Corp. |
3,860 | 623,429 | ||||||
CF Industries Holdings, Inc. |
8,685 | 493,308 | ||||||
Chase Corp.(a) |
386 | 37,056 | ||||||
Chemours Co. (The)(a) |
40,144 | 1,124,835 | ||||||
Corteva, Inc. |
18,914 | 816,139 | ||||||
Diversey Holdings Ltd.* |
2,316 | 40,298 | ||||||
Dow, Inc. |
23,160 | 1,296,265 | ||||||
DuPont de Nemours, Inc. |
16,791 | 1,168,654 | ||||||
Eastman Chemical Co.(a) |
4,439 | 461,789 | ||||||
Ecolab, Inc. |
6,562 | 1,458,208 | ||||||
Ecovyst, Inc. |
10,229 | 119,475 | ||||||
Element Solutions, Inc. |
16,598 | 376,941 | ||||||
Ferro Corp.* |
6,562 | 137,933 | ||||||
FMC Corp. |
4,632 | 421,558 | ||||||
GCP Applied Technologies, Inc.* |
3,474 | 78,547 | ||||||
Hawkins, Inc. |
772 | 28,309 | ||||||
HB Fuller Co.(a) |
1,544 | 108,867 | ||||||
Huntsman Corp. |
48,443 | 1,578,273 | ||||||
Ingevity Corp.* |
1,544 | 120,293 | ||||||
Innospec, Inc. |
772 | 69,951 | ||||||
International Flavors & Fragrances, Inc.(a) |
9,457 | 1,394,435 | ||||||
Koppers Holdings, Inc.* (a) |
6,948 | 243,805 | ||||||
Kraton Corp.* |
7,527 | 343,608 | ||||||
Kronos Worldwide, Inc.(a) |
4,632 | 60,355 | ||||||
Linde plc |
14,668 | 4,682,026 | ||||||
Livent Corp.* (a) |
7,720 | 217,858 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Loop Industries, Inc.* (a) |
7,334 | $ | 115,217 | |||||
LyondellBasell Industries NV, Class A(a) |
10,229 | 949,456 | ||||||
Minerals Technologies, Inc. |
8,685 | 616,114 | ||||||
Mosaic Co. (The) |
8,685 | 361,035 | ||||||
NewMarket Corp.(a) |
2,123 | 721,841 | ||||||
Olin Corp. |
35,319 | 2,012,477 | ||||||
PPG Industries, Inc.(a) |
5,597 | 898,710 | ||||||
Quaker Chemical Corp.(a) |
772 | 189,788 | ||||||
RPM International, Inc.(a) |
5,211 | 454,399 | ||||||
Scotts Miracle-Gro Co. (The) |
1,351 | 200,569 | ||||||
Sensient Technologies Corp.(a) |
1,351 | 129,156 | ||||||
Sherwin-Williams Co. (The) |
6,369 | 2,016,489 | ||||||
Stepan Co.(a) |
579 | 69,492 | ||||||
Trinseo plc |
6,562 | 367,866 | ||||||
Tronox Holdings plc, Class A |
25,669 | 598,601 | ||||||
Valvoline, Inc. |
6,755 | 229,400 | ||||||
Westlake Chemical Corp. |
386 | 37,573 | ||||||
32,144,380 | ||||||||
Commercial Services & Supplies – 0.6% | ||||||||
ABM Industries, Inc. |
14,475 | 637,045 | ||||||
ACCO Brands Corp. |
28,178 | 233,032 | ||||||
ADT, Inc.(a) |
22,774 | 190,163 | ||||||
Brady Corp., Class A(a) |
4,632 | 241,281 | ||||||
BrightView Holdings, Inc.* (a) |
8,492 | 134,683 | ||||||
Brink’s Co. (The)(a) |
1,544 | 106,351 | ||||||
Casella Waste Systems, Inc., Class A* (a) |
1,351 | 117,159 | ||||||
Cimpress plc* (a) |
2,316 | 206,865 | ||||||
Cintas Corp. |
2,316 | 1,003,060 | ||||||
Clean Harbors, Inc.* (a) |
2,702 | 304,083 | ||||||
Copart, Inc.* |
5,404 | 839,187 | ||||||
CoreCivic, Inc., REIT* |
13,896 | 119,645 | ||||||
Covanta Holding Corp.(a) |
3,667 | 74,000 | ||||||
Deluxe Corp.(a) |
6,562 | 234,067 | ||||||
Driven Brands Holdings, Inc.* (a) |
3,667 | 119,067 | ||||||
Ennis, Inc. |
6,948 | 131,595 | ||||||
Herman Miller, Inc.(a) |
14,862 | 578,410 | ||||||
HNI Corp.(a) |
3,860 | 144,364 | ||||||
IAA, Inc.* |
5,211 | 310,836 | ||||||
Interface, Inc.(a) |
16,212 | 232,804 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 147 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Commercial Services & Supplies – (continued) | ||||||||
KAR Auction Services, Inc.* (a) |
33,003 | $ | 484,154 | |||||
Kimball International, Inc., Class B |
1,351 | 14,685 | ||||||
Matthews International Corp., Class A(a) |
5,018 | 172,469 | ||||||
MSA Safety, Inc. |
2,123 | 324,883 | ||||||
Pitney Bowes, Inc. |
20,651 | 143,318 | ||||||
Republic Services, Inc. |
5,597 | 753,356 | ||||||
Rollins, Inc. |
5,211 | 183,584 | ||||||
SP Plus Corp.* (a) |
5,018 | 161,830 | ||||||
Steelcase, Inc., Class A |
6,369 | 75,791 | ||||||
Stericycle, Inc.* (a) |
3,088 | 206,649 | ||||||
Tetra Tech, Inc.(a) |
2,123 | 372,926 | ||||||
UniFirst Corp. |
772 | 152,825 | ||||||
US Ecology, Inc.* (a) |
5,404 | 173,955 | ||||||
Viad Corp.* (a) |
2,509 | 111,324 | ||||||
Waste Management, Inc. |
10,229 | 1,638,993 | ||||||
10,928,439 | ||||||||
Communications Equipment – 0.9% | ||||||||
ADTRAN, Inc.(a) |
4,246 | 78,466 | ||||||
Applied Optoelectronics, Inc.* (a) |
10,808 | 82,681 | ||||||
Arista Networks, Inc.* |
1,351 | 553,491 | ||||||
CalAmp Corp.* (a) |
10,229 | 98,403 | ||||||
Calix, Inc.* (a) |
4,246 | 265,757 | ||||||
Casa Systems, Inc.* |
1,351 | 8,552 | ||||||
Ciena Corp.* |
4,053 | 220,037 | ||||||
Cisco Systems, Inc. |
145,522 | 8,144,866 | ||||||
CommScope Holding Co., Inc.* |
39,758 | 425,808 | ||||||
Comtech Telecommunications Corp.(a) |
9,264 | 199,825 | ||||||
Digi International, Inc.* (a) |
3,860 | 83,183 | ||||||
Extreme Networks, Inc.* |
16,212 | 159,364 | ||||||
F5 Networks, Inc.* |
1,544 | 326,016 | ||||||
Harmonic, Inc.* |
3,088 | 28,008 | ||||||
Infinera Corp.* (a) |
7,141 | 54,200 | ||||||
Juniper Networks, Inc. |
13,317 | 393,118 | ||||||
Lumentum Holdings, Inc.* (a) |
19,686 | 1,625,670 |
Investments | Shares | Value | ||||||
Communications Equipment – (continued) | ||||||||
Motorola Solutions, Inc.(a) |
4,825 | $ | 1,199,447 | |||||
NETGEAR, Inc.* (a) |
8,299 | 239,260 | ||||||
NetScout Systems, Inc.* (a) |
12,738 | 344,690 | ||||||
Plantronics, Inc.* (a) |
9,650 | 258,234 | ||||||
Ribbon Communications, Inc.* (a) |
30,687 | 167,858 | ||||||
Ubiquiti, Inc.(a) |
386 | 117,935 | ||||||
Viasat, Inc.* (a) |
1,351 | 80,641 | ||||||
Viavi Solutions, Inc.* |
18,721 | 288,304 | ||||||
15,443,814 | ||||||||
Construction & Engineering – 0.4% | ||||||||
AECOM* |
6,176 | 422,253 | ||||||
Ameresco, Inc., Class A* (a) |
1,351 | 110,958 | ||||||
API Group Corp.* |
39,951 | 870,133 | ||||||
Arcosa, Inc.(a) |
1,544 | 79,871 | ||||||
Argan, Inc. |
386 | 15,926 | ||||||
Comfort Systems USA, Inc. |
3,474 | 317,767 | ||||||
Construction Partners, Inc., Class A* (a) |
1,158 | 41,236 | ||||||
Dycom Industries, Inc.* (a) |
1,544 | 122,625 | ||||||
EMCOR Group, Inc. |
11,773 | 1,430,302 | ||||||
Granite Construction, Inc.(a) |
3,860 | 143,283 | ||||||
Great Lakes Dredge & Dock Corp.* (a) |
11,387 | 173,310 | ||||||
MasTec, Inc.* |
3,088 | 275,233 | ||||||
MYR Group, Inc.* (a) |
2,123 | 216,865 | ||||||
Orbital Energy Group, Inc.* (a) |
13,124 | 35,041 | ||||||
Primoris Services Corp. |
12,159 | 327,685 | ||||||
Quanta Services, Inc. |
5,404 | 655,397 | ||||||
Sterling Construction Co., Inc.* (a) |
6,562 | 157,751 | ||||||
Tutor Perini Corp.* |
11,773 | 160,348 | ||||||
Valmont Industries, Inc. |
772 | 184,477 | ||||||
WillScot Mobile Mini Holdings Corp.* (a) |
13,124 | 456,059 | ||||||
6,196,520 | ||||||||
Construction Materials – 0.1% | ||||||||
Eagle Materials, Inc. |
1,930 | 286,335 | ||||||
Forterra, Inc.* (a) |
4,632 | 110,334 | ||||||
Martin Marietta Materials, Inc. |
1,737 | 682,363 |
See Accompanying Notes to the Financial Statements.
148 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction Materials – (continued) | ||||||||
Summit Materials, Inc., Class A* (a) |
5,404 | $ | 192,653 | |||||
Vulcan Materials Co. |
3,474 | 660,477 | ||||||
1,932,162 | ||||||||
Consumer Finance – 0.8% | ||||||||
Ally Financial, Inc. |
14,089 | 672,609 | ||||||
American Express Co. |
18,528 | 3,219,796 | ||||||
Capital One Financial Corp. |
15,633 | 2,361,052 | ||||||
Credit Acceptance Corp.* (a) |
579 | 346,364 | ||||||
Curo Group Holdings Corp. |
4,053 | 69,631 | ||||||
Discover Financial Services |
9,843 | 1,115,409 | ||||||
Encore Capital Group, Inc.* (a) |
8,106 | 437,886 | ||||||
Enova International, Inc.* (a) |
7,913 | 256,698 | ||||||
FirstCash, Inc. |
1,351 | 119,523 | ||||||
Green Dot Corp., Class A* |
2,702 | 114,457 | ||||||
LendingClub Corp.* |
9,650 | 443,514 | ||||||
LendingTree, Inc.* |
193 | 31,148 | ||||||
Navient Corp.(a) |
36,477 | 718,597 | ||||||
Nelnet, Inc., Class A(a) |
4,632 | 382,742 | ||||||
OneMain Holdings, Inc. |
5,211 | 275,193 | ||||||
PRA Group, Inc.* (a) |
11,773 | 504,826 | ||||||
PROG Holdings, Inc. |
16,598 | 671,389 | ||||||
Santander Consumer USA Holdings, Inc. |
5,211 | 217,299 | ||||||
SLM Corp. |
76,621 | 1,405,995 | ||||||
Synchrony Financial |
18,914 | 878,555 | ||||||
Upstart Holdings, Inc.* |
1,158 | 372,922 | ||||||
World Acceptance Corp.* |
386 | 71,560 | ||||||
14,687,165 | ||||||||
Containers & Packaging – 0.5% | ||||||||
Amcor plc |
53,847 | 649,933 | ||||||
AptarGroup, Inc. |
1,544 | 186,484 | ||||||
Avery Dennison Corp. |
1,930 | 420,200 | ||||||
Ball Corp. |
8,685 | 794,504 | ||||||
Berry Global Group, Inc.* |
6,562 | 430,073 | ||||||
Crown Holdings, Inc. |
5,018 | 521,822 | ||||||
Graphic Packaging Holding Co. |
60,988 | 1,215,491 | ||||||
Greif, Inc., Class A(a) |
6,176 | 399,464 |
Investments | Shares | Value | ||||||
Containers & Packaging – (continued) | ||||||||
International Paper Co. |
13,317 | $ | 661,455 | |||||
Myers Industries, Inc. |
386 | 7,944 | ||||||
O-I Glass, Inc.* |
38,793 | 506,249 | ||||||
Packaging Corp. of America |
3,474 | 477,223 | ||||||
Ranpak Holdings Corp.* (a) |
6,562 | 226,127 | ||||||
Sealed Air Corp. |
7,334 | 435,053 | ||||||
Silgan Holdings, Inc.(a) |
16,791 | 674,998 | ||||||
Sonoco Products Co.(a) |
21,230 | 1,230,279 | ||||||
TriMas Corp.* |
1,544 | 51,492 | ||||||
Westrock Co. |
9,843 | 473,448 | ||||||
9,362,239 | ||||||||
Distributors – 0.1% | ||||||||
Genuine Parts Co. |
4,632 | 607,302 | ||||||
LKQ Corp.* |
10,808 | 595,305 | ||||||
Pool Corp. |
965 | 497,129 | ||||||
1,699,736 | ||||||||
Diversified Consumer Services – 0.3% | ||||||||
2U, Inc.* (a) |
2,895 | 85,518 | ||||||
Adtalem Global Education, Inc.* (a) |
11,580 | 427,650 | ||||||
American Public Education, Inc.* |
386 | 9,646 | ||||||
Bright Horizons Family Solutions, Inc.* |
2,316 | 384,456 | ||||||
Chegg, Inc.* |
3,667 | 217,967 | ||||||
Coursera, Inc.* (a) |
6,176 | 215,604 | ||||||
frontdoor, Inc.* |
1,737 | 64,755 | ||||||
Graham Holdings Co., Class B(a) |
965 | 565,345 | ||||||
Grand Canyon Education, Inc.* (a) |
3,088 | 246,114 | ||||||
H&R Block, Inc.(a) |
44,776 | 1,032,982 | ||||||
Houghton Mifflin Harcourt Co.* (a) |
16,598 | 235,526 | ||||||
Laureate Education, Inc., Class A* |
26,441 | 457,958 | ||||||
OneSpaWorld Holdings Ltd.* (a) |
9,843 | 106,304 | ||||||
Perdoceo Education Corp.* |
4,439 | 47,142 | ||||||
Service Corp. International(a) |
4,825 | 330,464 | ||||||
Strategic Education, Inc.(a) |
3,667 | 250,126 | ||||||
Stride, Inc.* |
12,159 | 431,645 |
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) | ||||||||
Diversified Consumer Services – (continued) | ||||||||
Terminix Global Holdings, Inc.* |
3,474 | $ | 140,628 | |||||
WW International, Inc.* (a) |
6,562 | 113,916 | ||||||
5,363,746 | ||||||||
Diversified Financial Services – 1.1% | ||||||||
A-Mark Precious Metals, Inc.(a) |
1,544 | 115,785 | ||||||
Berkshire Hathaway, Inc., Class B* |
63,497 | 18,224,274 | ||||||
Cannae Holdings, Inc.* |
15,633 | 533,085 | ||||||
Equitable Holdings, Inc. |
15,633 | 523,706 | ||||||
Voya Financial, Inc.(a) |
5,211 | 363,571 | ||||||
19,760,421 | ||||||||
Diversified Telecommunication Services – 0.9% | ||||||||
Anterix, Inc.* (a) |
386 | 24,743 | ||||||
AT&T, Inc. |
237,776 | 6,006,222 | ||||||
ATN International, Inc. |
2,123 | 86,576 | ||||||
Bandwidth, Inc., Class A* (a) |
2,316 | 197,508 | ||||||
Cogent Communications Holdings, Inc.(a) |
3,860 | 295,637 | ||||||
Consolidated Communications Holdings, Inc.* (a) |
17,949 | 132,823 | ||||||
EchoStar Corp., Class A* |
193 | 4,528 | ||||||
Iridium Communications, Inc.* |
7,527 | 305,220 | ||||||
Liberty Latin America Ltd., Class A* |
9,264 | 111,353 | ||||||
Liberty Latin America Ltd., Class C* |
17,177 | 206,639 | ||||||
Lumen Technologies, Inc.(a) |
25,669 | 304,434 | ||||||
Ooma, Inc.* (a) |
1,158 | 26,750 | ||||||
Verizon Communications, Inc. |
138,188 | 7,322,582 | ||||||
15,025,015 | ||||||||
Electric Utilities – 1.3% | ||||||||
ALLETE, Inc.(a) |
4,825 | 296,930 | ||||||
Alliant Energy Corp. |
7,913 | 447,638 | ||||||
American Electric Power Co., Inc. |
16,984 | 1,438,715 |
Investments | Shares | Value | ||||||
Electric Utilities – (continued) | ||||||||
Avangrid, Inc.(a) |
965 | $ | 50,855 | |||||
Duke Energy Corp. |
25,090 | 2,559,431 | ||||||
Edison International |
10,615 | 668,002 | ||||||
Entergy Corp. |
5,983 | 616,369 | ||||||
Evergy, Inc. |
5,983 | 381,416 | ||||||
Eversource Energy |
9,650 | 819,285 | ||||||
Exelon Corp. |
32,231 | 1,714,367 | ||||||
FirstEnergy Corp. |
18,721 | 721,320 | ||||||
Hawaiian Electric Industries, Inc. |
7,141 | 289,639 | ||||||
IDACORP, Inc. |
3,088 | 322,140 | ||||||
MGE Energy, Inc.(a) |
1,158 | 87,881 | ||||||
NextEra Energy, Inc. |
52,303 | 4,463,015 | ||||||
NRG Energy, Inc.(a) |
9,843 | 392,637 | ||||||
OGE Energy Corp. |
9,843 | 335,351 | ||||||
Otter Tail Corp.(a) |
772 | 47,872 | ||||||
PG&E Corp.* (a) |
37,635 | 436,566 | ||||||
Pinnacle West Capital Corp. |
2,316 | 149,359 | ||||||
PNM Resources, Inc. |
5,211 | 259,247 | ||||||
Portland General Electric Co. |
23,932 | 1,180,087 | ||||||
PPL Corp. |
24,897 | 717,034 | ||||||
Southern Co. (The) |
35,512 | 2,213,108 | ||||||
Xcel Energy, Inc. |
20,265 | 1,308,916 | ||||||
21,917,180 | ||||||||
Electrical Equipment – 0.8% | ||||||||
Acuity Brands, Inc.(a) |
2,509 | 515,424 | ||||||
Advent Technologies Holdings, Inc.* (a) |
9,071 | 86,991 | ||||||
American Superconductor Corp.* (a) |
5,211 | 95,778 | ||||||
AMETEK, Inc. |
5,404 | 715,490 | ||||||
Atkore, Inc.* |
11,773 | 1,112,902 | ||||||
AZZ, Inc.(a) |
2,895 | 153,811 | ||||||
Beam Global* (a) |
1,930 | 60,795 | ||||||
Bloom Energy Corp., Class A* (a) |
965 | 30,166 | ||||||
Eaton Corp. plc |
13,510 | 2,225,908 | ||||||
Emerson Electric Co. |
20,265 | 1,965,908 | ||||||
Encore Wire Corp. |
772 | 103,494 | ||||||
Energous Corp.* (a) |
30,108 | 57,807 | ||||||
EnerSys |
3,860 | 308,954 | ||||||
Generac Holdings, Inc.* |
1,737 | 865,999 |
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) | ||||||||
Electrical Equipment – (continued) | ||||||||
GrafTech International Ltd. |
49,987 | $ | 534,861 | |||||
Hubbell, Inc. |
1,351 | 269,349 | ||||||
nVent Electric plc |
41,688 | 1,477,840 | ||||||
Plug Power, Inc.* (a) |
15,633 | 598,275 | ||||||
Polar Power, Inc.* (a) |
7,334 | 37,257 | ||||||
Powell Industries, Inc.(a) |
5,790 | 149,729 | ||||||
Regal Rexnord Corp. |
3,584 | 545,932 | ||||||
Rockwell Automation, Inc.(a) |
3,088 | 986,307 | ||||||
Sensata Technologies Holding plc* |
4,632 | 255,223 | ||||||
Shoals Technologies Group, Inc., Class A* |
6,369 | 197,375 | ||||||
Sunrun, Inc.* (a) |
2,895 | 166,984 | ||||||
Sunworks, Inc.* (a) |
6,948 | 42,174 | ||||||
Thermon Group Holdings, Inc.* |
965 | 16,675 | ||||||
Vertiv Holdings Co.(a) |
4,053 | 104,081 | ||||||
Vicor Corp.* (a) |
772 | 117,027 | ||||||
13,798,516 | ||||||||
Electronic Equipment, Instruments & Components – 1.2% | ||||||||
908 Devices, Inc.* (a) |
2,123 | 69,847 | ||||||
Advanced Energy Industries, Inc.(a) |
3,281 | 301,261 | ||||||
Amphenol Corp., Class A(a) |
16,598 | 1,274,228 | ||||||
Arlo Technologies, Inc.* |
9,457 | 65,253 | ||||||
Arrow Electronics, Inc.* |
3,667 | 424,455 | ||||||
Avnet, Inc. |
20,265 | 772,299 | ||||||
Badger Meter, Inc.(a) |
965 | 98,671 | ||||||
Belden, Inc. |
4,632 | 278,893 | ||||||
Benchmark Electronics, Inc.(a) |
1,158 | 26,993 | ||||||
CDW Corp. |
3,474 | 648,422 | ||||||
Cognex Corp. |
4,439 | 388,812 | ||||||
Coherent, Inc.* |
772 | 196,397 | ||||||
Corning, Inc. |
24,511 | 871,856 | ||||||
CTS Corp.(a) |
1,158 | 41,248 | ||||||
ePlus, Inc.* (a) |
1,930 | 213,400 | ||||||
Fabrinet* |
1,158 | 111,168 | ||||||
FARO Technologies, Inc.* (a) |
579 | 42,597 | ||||||
Flex Ltd.* |
20,265 | 342,479 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components
– (continued) |
||||||||
II-VI, Inc.* (a) |
22,774 | $ | 1,378,055 | |||||
Insight Enterprises, Inc.* (a) |
8,878 | 840,747 | ||||||
Intellicheck, Inc.* |
5,597 | 49,757 | ||||||
IPG Photonics Corp.* |
965 | 153,445 | ||||||
Itron, Inc.* |
1,158 | 90,058 | ||||||
Jabil, Inc.(a) |
6,948 | 416,602 | ||||||
Keysight Technologies, Inc.* |
4,825 | 868,597 | ||||||
Kimball Electronics, Inc.* (a) |
11,194 | 321,828 | ||||||
Knowles Corp.* (a) |
2,895 | 60,332 | ||||||
Littelfuse, Inc. |
965 | 284,241 | ||||||
Luna Innovations, Inc.* (a) |
6,755 | 65,794 | ||||||
Methode Electronics, Inc. |
10,229 | 430,334 | ||||||
National Instruments Corp. |
3,667 | 155,737 | ||||||
nLight, Inc.* (a) |
386 | 10,854 | ||||||
Novanta, Inc.* |
2,123 | 366,345 | ||||||
OSI Systems, Inc.* |
579 | 53,911 | ||||||
PAR Technology Corp.* |
1,737 | 109,118 | ||||||
PC Connection, Inc.(a) |
3,088 | 142,202 | ||||||
Plexus Corp.* (a) |
8,106 | 707,816 | ||||||
Rogers Corp.* (a) |
579 | 116,448 | ||||||
Sanmina Corp.* (a) |
16,984 | 641,146 | ||||||
ScanSource, Inc.* |
3,474 | 124,300 | ||||||
SYNNEX Corp.(a) |
10,229 | 1,074,045 | ||||||
TE Connectivity Ltd. |
8,878 | 1,296,188 | ||||||
Teledyne Technologies, Inc.* |
1,544 | 693,596 | ||||||
Trimble, Inc.* |
6,755 | 590,184 | ||||||
TTM Technologies, Inc.* (a) |
23,932 | 316,860 | ||||||
Velodyne Lidar, Inc.* (a) |
17,756 | 108,312 | ||||||
Vishay Intertechnology, Inc. |
25,283 | 485,939 | ||||||
Vontier Corp. |
44,004 | 1,488,655 | ||||||
Zebra Technologies Corp., Class A* |
1,351 | 721,366 | ||||||
20,331,091 | ||||||||
Energy Equipment & Services – 0.4% | ||||||||
Archrock, Inc.(a) |
13,896 | 113,808 | ||||||
Baker Hughes Co.(a) |
23,160 | 580,853 | ||||||
Cactus, Inc., Class A(a) |
6,755 | 293,842 | ||||||
ChampionX Corp.* |
15,247 | 399,929 | ||||||
Core Laboratories NV |
2,509 | 65,259 | ||||||
Dril-Quip, Inc.* (a) |
7,141 | 168,242 | ||||||
Expro Group Holdings NV* |
8,105 | 139,001 |
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) | ||||||||
Energy Equipment & Services – (continued) | ||||||||
FTS International, Inc., Class A* (a) |
1,737 | $ | 46,030 | |||||
Halliburton Co. |
17,949 | 448,545 | ||||||
Helix Energy Solutions Group, Inc.* |
12,159 | 45,961 | ||||||
Helmerich & Payne, Inc. |
30,494 | 946,534 | ||||||
Liberty Oilfield Services, Inc., Class A* (a) |
13,124 | 169,562 | ||||||
Nabors Industries Ltd.* (a) |
386 | 39,592 | ||||||
NexTier Oilfield Solutions, Inc.* |
11,773 | 52,508 | ||||||
NOV, Inc.* |
83,376 | 1,168,932 | ||||||
Oceaneering International, Inc.* (a) |
18,142 | 246,731 | ||||||
Oil States International, Inc.* (a) |
27,792 | 168,420 | ||||||
Patterson-UTI Energy, Inc. |
29,336 | 251,116 | ||||||
ProPetro Holding Corp.* |
5,018 | 48,123 | ||||||
RPC, Inc.* (a) |
19,300 | 104,027 | ||||||
Schlumberger NV |
42,846 | 1,382,212 | ||||||
Select Energy Services, Inc., Class A* |
33,003 | 198,348 | ||||||
Solaris Oilfield Infrastructure, Inc., Class A |
19,107 | 145,022 | ||||||
Transocean Ltd.* (a) |
106,150 | 374,709 | ||||||
US Silica Holdings, Inc.* (a) |
5,597 | 54,179 | ||||||
7,651,485 | ||||||||
Entertainment – 1.4% | ||||||||
Activision Blizzard, Inc. |
19,686 | 1,539,248 | ||||||
AMC Entertainment Holdings, Inc., Class A* (a) |
23,739 | 839,648 | ||||||
Cinemark Holdings, Inc.* (a) |
11,580 | 217,704 | ||||||
Electronic Arts, Inc. |
7,527 | 1,055,662 | ||||||
IMAX Corp.* |
2,316 | 43,657 | ||||||
Liberty Media Corp-Liberty Formula One, Class A* |
2,123 | 110,714 | ||||||
Liberty Media Corp-Liberty Formula One, Class C* (a) |
5,790 | 323,082 | ||||||
Lions Gate Entertainment Corp., Class A* |
17,756 | 229,940 |
Investments | Shares | Value | ||||||
Entertainment – (continued) | ||||||||
Lions Gate Entertainment Corp., Class B* |
34,547 | $ | 391,072 | |||||
Live Nation Entertainment, Inc.* |
3,667 | 370,917 | ||||||
Madison Square Garden Entertainment Corp.* (a) |
1,930 | 136,007 | ||||||
Madison Square Garden Sports Corp., Class A* (a) |
1,158 | 219,453 | ||||||
Marcus Corp. (The)* (a) |
6,176 | 114,688 | ||||||
Netflix, Inc.* |
12,352 | 8,526,709 | ||||||
Roku, Inc.* |
2,702 | 823,840 | ||||||
Sciplay Corp., Class A* (a) |
7,141 | 144,320 | ||||||
Skillz, Inc.* (a) |
1,351 | 15,104 | ||||||
Take-Two Interactive Software, Inc.* (a) |
2,895 | 523,995 | ||||||
Walt Disney Co. (The)* |
50,180 | 8,483,933 | ||||||
Warner Music Group Corp., Class A |
6,562 | 324,753 | ||||||
World Wrestling Entertainment, Inc., Class A(a) |
3,088 | 188,646 | ||||||
Zynga, Inc., Class A* |
25,283 | 186,589 | ||||||
24,809,681 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.2% | ||||||||
Acadia Realty Trust |
4,246 | 90,779 | ||||||
Agree Realty Corp.(a) |
4,825 | 342,865 | ||||||
Alexander & Baldwin, Inc. |
5,983 | 146,763 | ||||||
Alexander’s, Inc. |
386 | 107,609 | ||||||
Alexandria Real Estate Equities, Inc.(a) |
3,281 | 669,783 | ||||||
American Assets Trust, Inc. |
579 | 21,904 | ||||||
American Campus Communities, Inc. |
5,211 | 279,935 | ||||||
American Finance Trust, Inc. |
39,565 | 327,598 | ||||||
American Homes 4 Rent, Class A |
6,755 | 274,253 | ||||||
American Tower Corp. |
12,738 | 3,591,734 | ||||||
Americold Realty Trust(a) |
6,562 | 193,382 | ||||||
Apartment Income REIT Corp.(a) |
10,615 | 569,070 | ||||||
Apple Hospitality REIT, Inc. |
14,668 | 230,434 | ||||||
Armada Hoffler Properties, Inc. |
1,930 | 26,460 | ||||||
AvalonBay Communities, Inc. |
3,860 | 913,585 |
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) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Bluerock Residential Growth REIT, Inc. |
8,299 | $ | 112,285 | |||||
Boston Properties, Inc. |
2,702 | 307,055 | ||||||
Braemar Hotels & Resorts, Inc.* (a) |
17,756 | 90,200 | ||||||
Brandywine Realty Trust |
17,756 | 235,267 | ||||||
Brixmor Property Group, Inc.(a) |
11,194 | 262,387 | ||||||
Broadstone Net Lease, Inc.(a) |
12,738 | 338,703 | ||||||
Camden Property Trust |
2,509 | 409,218 | ||||||
CareTrust REIT, Inc.(a) |
11,001 | 228,271 | ||||||
CatchMark Timber Trust, Inc., Class A |
2,123 | 18,173 | ||||||
Centerspace |
4,632 | 468,944 | ||||||
Chatham Lodging Trust* |
7,527 | 95,518 | ||||||
City Office REIT, Inc. |
6,369 | 120,820 | ||||||
Columbia Property Trust, Inc. |
5,983 | 114,694 | ||||||
Community Healthcare Trust, Inc.(a) |
772 | 36,932 | ||||||
CoreSite Realty Corp. |
2,509 | 357,432 | ||||||
Corporate Office Properties Trust |
9,843 | 266,942 | ||||||
Cousins Properties, Inc.(a) |
5,983 | 236,987 | ||||||
Crown Castle International Corp. |
11,580 | 2,087,874 | ||||||
CubeSmart |
8,106 | 445,911 | ||||||
CyrusOne, Inc. |
2,895 | 237,448 | ||||||
DiamondRock Hospitality Co.* |
17,949 | 162,259 | ||||||
Digital Realty Trust, Inc.(a) |
8,299 | 1,309,665 | ||||||
DigitalBridge Group, Inc.* (a) |
26,055 | 174,569 | ||||||
Diversified Healthcare Trust(a) |
18,914 | 68,847 | ||||||
Douglas Emmett, Inc.(a) |
7,913 | 258,597 | ||||||
Duke Realty Corp. |
9,650 | 542,716 | ||||||
EastGroup Properties, Inc.(a) |
2,316 | 458,058 | ||||||
Empire State Realty Trust, Inc., Class A(a) |
17,563 | 170,010 | ||||||
EPR Properties |
6,369 | 319,787 | ||||||
Equinix, Inc.(a) |
2,509 | 2,100,209 | ||||||
Equity Commonwealth(a) |
1,158 | 30,027 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Equity LifeStyle Properties, Inc. |
4,825 | $ | 407,761 | |||||
Equity Residential |
7,913 | 683,683 | ||||||
Essential Properties Realty Trust, Inc.(a) |
6,369 | 189,733 | ||||||
Essex Property Trust, Inc. |
1,544 | 524,852 | ||||||
Extra Space Storage, Inc. |
3,474 | 685,663 | ||||||
Federal Realty Investment Trust |
3,088 | 371,641 | ||||||
First Industrial Realty Trust, Inc. |
7,913 | 460,774 | ||||||
Four Corners Property Trust, Inc.(a) |
8,878 | 257,462 | ||||||
Franklin Street Properties Corp.(a) |
28,757 | 129,407 | ||||||
Gaming and Leisure Properties, Inc. |
7,334 | 355,626 | ||||||
GEO Group, Inc. (The)(a) |
11,194 | 91,567 | ||||||
Getty Realty Corp. |
4,632 | 148,780 | ||||||
Healthcare Realty Trust, Inc.(a) |
8,492 | 280,746 | ||||||
Healthcare Trust of America, Inc., Class A |
11,966 | 399,545 | ||||||
Healthpeak Properties, Inc. |
13,124 | 466,033 | ||||||
Hersha Hospitality Trust* |
13,317 | 118,921 | ||||||
Highwoods Properties, Inc.(a) |
8,106 | 363,473 | ||||||
Host Hotels & Resorts, Inc.* (a) |
18,335 | 308,578 | ||||||
Hudson Pacific Properties, Inc. |
6,562 | 168,972 | ||||||
Independence Realty Trust, Inc.(a) |
3,088 | 72,969 | ||||||
Industrial Logistics Properties Trust(a) |
17,756 | 498,766 | ||||||
Innovative Industrial Properties, Inc. |
965 | 253,882 | ||||||
Invitation Homes, Inc. |
14,282 | 589,132 | ||||||
Iron Mountain, Inc.(a) |
7,527 | 343,532 | ||||||
iStar, Inc.(a) |
6,176 | 155,882 | ||||||
JBG SMITH Properties |
1,544 | 44,560 | ||||||
Kilroy Realty Corp.(a) |
4,632 | 312,104 | ||||||
Kimco Realty Corp.(a) |
22,967 | 519,054 | ||||||
Kite Realty Group Trust |
7,201 | 146,180 |
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) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Lamar Advertising Co., Class A |
3,667 | $ | 415,104 | |||||
Lexington Realty Trust(a) |
7,720 | 112,480 | ||||||
Life Storage, Inc. |
4,246 | 568,157 | ||||||
Macerich Co. (The)(a) |
16,212 | 293,275 | ||||||
Medical Properties Trust, Inc.(a) |
13,896 | 296,402 | ||||||
Mid-America Apartment Communities, Inc. |
3,088 | 630,600 | ||||||
Monmouth Real Estate Investment Corp. |
3,474 | 65,485 | ||||||
National Health Investors, Inc. |
4,632 | 249,109 | ||||||
National Retail Properties, Inc. |
6,948 | 315,161 | ||||||
National Storage Affiliates Trust |
1,930 | 120,548 | ||||||
NexPoint Residential Trust, Inc. |
– | (c) | 21 | |||||
Office Properties Income Trust |
6,369 | 163,174 | ||||||
Omega Healthcare Investors, Inc.(a) |
11,194 | 328,656 | ||||||
Outfront Media, Inc. |
12,931 | 321,853 | ||||||
Paramount Group, Inc. |
23,932 | 202,943 | ||||||
Park Hotels & Resorts, Inc.* |
57,707 | 1,069,311 | ||||||
Pebblebrook Hotel Trust(a) |
9,843 | 221,074 | ||||||
Physicians Realty Trust(a) |
13,896 | 264,163 | ||||||
Piedmont Office Realty Trust, Inc., Class A |
12,931 | 229,655 | ||||||
Plymouth Industrial REIT, Inc. |
10,229 | 261,453 | ||||||
PotlatchDeltic Corp. |
13,317 | 696,080 | ||||||
Preferred Apartment Communities, Inc., Class A(a) |
18,528 | 233,638 | ||||||
Prologis, Inc. |
20,651 | 2,993,569 | ||||||
PS Business Parks, Inc. |
579 | 102,888 | ||||||
Public Storage |
4,246 | 1,410,436 | ||||||
Rayonier, Inc.(a) |
8,878 | 331,416 | ||||||
Realty Income Corp.(a) |
10,808 | 772,015 | ||||||
Regency Centers Corp. |
2,895 | 203,837 | ||||||
Retail Opportunity Investments Corp. |
7,334 | 130,325 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Retail Value, Inc. |
2,702 | $ | 16,915 | |||||
Rexford Industrial Realty, Inc.(a) |
7,720 | 518,784 | ||||||
RLJ Lodging Trust |
3,088 | 44,529 | ||||||
RPT Realty |
9,650 | 128,249 | ||||||
Ryman Hospitality Properties, Inc.* (a) |
3,667 | 313,675 | ||||||
Sabra Health Care REIT, Inc. |
19,493 | 275,826 | ||||||
Safehold, Inc. |
386 | 28,834 | ||||||
Saul Centers, Inc. |
772 | 35,821 | ||||||
SBA Communications Corp. |
2,895 | 999,730 | ||||||
Seritage Growth Properties, Class A* (a) |
4,053 | 62,416 | ||||||
Service Properties Trust |
13,124 | 141,345 | ||||||
Simon Property Group, Inc.(a) |
8,106 | 1,188,177 | ||||||
SITE Centers Corp. |
5,404 | 85,870 | ||||||
SL Green Realty Corp. |
14,089 | 987,216 | ||||||
Spirit Realty Capital, Inc. |
5,597 | 273,861 | ||||||
STAG Industrial, Inc. |
9,457 | 411,663 | ||||||
STORE Capital Corp. |
10,036 | 344,536 | ||||||
Summit Hotel Properties, Inc.* |
10,808 | 108,080 | ||||||
Sun Communities, Inc.(a) |
3,667 | 718,659 | ||||||
Sunstone Hotel Investors, Inc.* |
9,650 | 119,081 | ||||||
Tanger Factory Outlet Centers, Inc.(a) |
12,352 | 207,514 | ||||||
Terreno Realty Corp. |
4,439 | 324,624 | ||||||
UDR, Inc.(a) |
10,229 | 568,016 | ||||||
Uniti Group, Inc. |
13,896 | 198,852 | ||||||
Universal Health Realty Income Trust |
386 | 21,990 | ||||||
Urban Edge Properties(a) |
5,018 | 87,966 | ||||||
Urstadt Biddle Properties, Inc., Class A(a) |
5,983 | 117,506 | ||||||
Ventas, Inc. |
12,352 | 659,226 | ||||||
VEREIT, Inc. |
4,632 | 232,990 | ||||||
VICI Properties, Inc.(a) |
16,791 | 492,816 | ||||||
Vornado Realty Trust |
5,790 | 246,828 | ||||||
Washington REIT(a) |
6,948 | 176,132 | ||||||
Welltower, Inc. |
10,422 | 837,929 | ||||||
Weyerhaeuser Co. |
19,107 | 682,502 | ||||||
Whitestone REIT(a) |
8,878 | 81,500 |
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) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
WP Carey, Inc.(a) |
4,825 | $ | 372,056 | |||||
Xenia Hotels & Resorts, Inc.* (a) |
30,494 | 542,793 | ||||||
54,858,572 | ||||||||
Food & Staples Retailing – 1.2% | ||||||||
Andersons, Inc. (The)(a) |
2,895 | 98,604 | ||||||
BJ’s Wholesale Club Holdings, Inc.* (a) |
33,196 | 1,939,974 | ||||||
Casey’s General Stores, Inc. |
965 | 184,836 | ||||||
Chefs’ Warehouse, Inc. (The)* |
5,790 | 201,897 | ||||||
Costco Wholesale Corp. |
12,352 | 6,071,502 | ||||||
Ingles Markets, Inc., Class A(a) |
2,316 | 160,244 | ||||||
Kroger Co. (The) |
26,248 | 1,050,445 | ||||||
Performance Food Group Co.* |
3,667 | 165,859 | ||||||
PriceSmart, Inc. |
579 | 41,659 | ||||||
Rite Aid Corp.* (a) |
5,597 | 76,063 | ||||||
SpartanNash Co. |
10,615 | 245,631 | ||||||
Sprouts Farmers Market, Inc.* (a) |
30,301 | 670,864 | ||||||
Sysco Corp. |
15,054 | 1,157,653 | ||||||
United Natural Foods, Inc.* |
15,633 | 678,316 | ||||||
US Foods Holding Corp.* (a) |
9,457 | 327,874 | ||||||
Walgreens Boots Alliance, Inc. |
21,616 | 1,016,384 | ||||||
Walmart, Inc. |
38,407 | 5,738,774 | ||||||
Weis Markets, Inc.(a) |
5,018 | 282,564 | ||||||
20,109,143 | ||||||||
Food Products – 0.9% | ||||||||
Archer-Daniels-Midland Co. |
19,493 | 1,252,230 | ||||||
B&G Foods, Inc.(a) |
16,984 | 500,009 | ||||||
Beyond Meat, Inc.* (a) |
386 | 38,206 | ||||||
Bunge Ltd. |
4,053 | 375,470 | ||||||
Calavo Growers, Inc. |
4,632 | 186,206 | ||||||
Cal-Maine Foods, Inc.(a) |
965 | 34,798 | ||||||
Campbell Soup Co. |
4,053 | 161,917 | ||||||
Conagra Brands, Inc.(a) |
19,879 | 640,104 | ||||||
Darling Ingredients, Inc.* (a) |
5,211 | 440,434 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Flowers Foods, Inc. |
12,545 | $ | 310,489 | |||||
Fresh Del Monte Produce, Inc.(a) |
3,667 | 122,808 | ||||||
Freshpet, Inc.* (a) |
1,930 | 300,906 | ||||||
General Mills, Inc. |
22,002 | 1,359,724 | ||||||
Hain Celestial Group, Inc. (The)* (a) |
2,509 | 112,579 | ||||||
Hershey Co. (The) |
3,860 | 676,851 | ||||||
Hormel Foods Corp.(a) |
4,825 | 204,194 | ||||||
Hostess Brands, Inc.* (a) |
4,053 | 76,642 | ||||||
Ingredion, Inc. |
14,475 | 1,378,454 | ||||||
J & J Snack Foods Corp. |
386 | 56,954 | ||||||
J M Smucker Co. (The) |
4,053 | 497,952 | ||||||
John B Sanfilippo & Son, Inc. |
386 | 32,617 | ||||||
Kellogg Co. |
6,562 | 402,251 | ||||||
Kraft Heinz Co. (The) |
23,932 | 858,919 | ||||||
Lamb Weston Holdings, Inc. |
1,737 | 98,054 | ||||||
Lancaster Colony Corp. |
579 | 98,430 | ||||||
McCormick & Co., Inc. (Non-Voting)(a) |
8,492 | 681,313 | ||||||
Mission Produce, Inc.* |
4,632 | 87,962 | ||||||
Mondelez International, Inc., Class A |
45,355 | 2,754,863 | ||||||
Pilgrim’s Pride Corp.* |
10,036 | 282,614 | ||||||
Post Holdings, Inc.* |
3,474 | 352,541 | ||||||
Sanderson Farms, Inc. |
579 | 109,692 | ||||||
Seaboard Corp.(a) |
64 | 246,401 | ||||||
Simply Good Foods Co. (The)* |
2,702 | 107,134 | ||||||
Tootsie Roll Industries, Inc.(a) |
3,088 | 97,736 | ||||||
TreeHouse Foods, Inc.* (a) |
9,843 | 355,726 | ||||||
Tyson Foods, Inc., Class A |
8,299 | 663,671 | ||||||
Whole Earth Brands, Inc.* (a) |
11,387 | 138,124 | ||||||
16,094,975 | ||||||||
Gas Utilities – 0.3% | ||||||||
Atmos Energy Corp. |
3,088 | 284,467 | ||||||
Chesapeake Utilities Corp.(a) |
579 | 75,889 | ||||||
National Fuel Gas Co. |
24,318 | 1,396,583 | ||||||
New Jersey Resources Corp.(a) |
8,685 | 328,380 | ||||||
Northwest Natural Holding Co.(a) |
965 | 43,512 |
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) | ||||||||
Gas Utilities – (continued) | ||||||||
ONE Gas, Inc. |
4,632 | $ | 311,734 | |||||
South Jersey Industries, Inc.(a) |
29,915 | 680,865 | ||||||
Southwest Gas Holdings, Inc. |
13,896 | 962,298 | ||||||
Spire, Inc.(a) |
10,229 | 641,972 | ||||||
UGI Corp. |
7,913 | 343,503 | ||||||
5,069,203 | ||||||||
Health Care Equipment & Supplies – 2.9% | ||||||||
Abbott Laboratories |
49,794 | 6,417,949 | ||||||
ABIOMED, Inc.* |
1,158 | 384,502 | ||||||
Acutus Medical, Inc.* |
10,808 | 84,735 | ||||||
Align Technology, Inc.* |
1,930 | 1,205,034 | ||||||
Alphatec Holdings, Inc.* |
7,720 | 90,556 | ||||||
AngioDynamics, Inc.* (a) |
772 | 22,079 | ||||||
Asensus Surgical, Inc.* (a) |
39,179 | 66,213 | ||||||
AtriCure, Inc.* (a) |
2,895 | 217,299 | ||||||
Avanos Medical, Inc.* |
6,755 | 213,053 | ||||||
Axonics, Inc.* (a) |
2,895 | 212,348 | ||||||
Baxter International, Inc. |
13,317 | 1,051,510 | ||||||
Becton Dickinson and Co. |
10,229 | 2,450,766 | ||||||
Boston Scientific Corp.* |
39,758 | 1,714,763 | ||||||
Cardiovascular Systems, Inc.* (a) |
5,404 | 189,572 | ||||||
Cerus Corp.* (a) |
17,949 | 118,463 | ||||||
Co-Diagnostics, Inc.* (a) |
386 | 3,169 | ||||||
CONMED Corp. |
965 | 141,160 | ||||||
Cooper Cos., Inc. (The) |
1,351 | 563,259 | ||||||
CryoLife, Inc.* (a) |
1,351 | 27,885 | ||||||
CryoPort, Inc.* (a) |
1,158 | 94,423 | ||||||
Cutera, Inc.* (a) |
1,351 | 58,093 | ||||||
Danaher Corp. |
17,949 | 5,595,960 | ||||||
Dentsply Sirona, Inc. |
5,983 | 342,287 | ||||||
DexCom, Inc.* (a) |
2,702 | 1,683,913 | ||||||
Edwards Lifesciences Corp.* |
16,212 | 1,942,522 | ||||||
Envista Holdings Corp.* (a) |
7,141 | 279,213 | ||||||
Establishment Labs Holdings, Inc.* (a) |
1,351 | 110,161 | ||||||
Glaukos Corp.* (a) |
579 | 26,466 | ||||||
Globus Medical, Inc., Class A* |
4,632 | 357,452 | ||||||
Haemonetics Corp.* (a) |
579 | 39,783 |
Investments | Shares | Value | ||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Heska Corp.* (a) |
193 | $ | 43,141 | |||||
Hill-Rom Holdings, Inc. |
1,737 | 269,061 | ||||||
Hologic, Inc.* |
8,492 | 622,549 | ||||||
ICU Medical, Inc.* |
579 | 135,561 | ||||||
IDEXX Laboratories, Inc.* |
2,509 | 1,671,345 | ||||||
Inari Medical, Inc.* (a) |
2,895 | 262,055 | ||||||
Insulet Corp.* (a) |
1,737 | 538,505 | ||||||
Integer Holdings Corp.* (a) |
965 | 86,869 | ||||||
Integra LifeSciences Holdings Corp.* |
4,439 | 295,016 | ||||||
Intersect ENT, Inc.* |
1,158 | 31,231 | ||||||
Intuitive Surgical, Inc.* |
9,843 | 3,554,603 | ||||||
iRhythm Technologies, Inc.* |
386 | 27,074 | ||||||
Lantheus Holdings, Inc.* |
8,492 | 198,628 | ||||||
LeMaitre Vascular, Inc.(a) |
386 | 20,076 | ||||||
LivaNova plc* |
3,281 | 251,718 | ||||||
Masimo Corp.* (a) |
1,351 | 383,063 | ||||||
Medtronic plc |
38,021 | 4,557,197 | ||||||
Meridian Bioscience, Inc.* |
3,667 | 68,976 | ||||||
Merit Medical Systems, Inc.* (a) |
1,737 | 116,831 | ||||||
Natus Medical, Inc.* |
1,351 | 33,843 | ||||||
Neogen Corp.* |
6,562 | 277,638 | ||||||
Neuronetics, Inc.* (a) |
10,229 | 53,191 | ||||||
Nevro Corp.* (a) |
965 | 109,759 | ||||||
Novocure Ltd.* (a) |
2,123 | 217,756 | ||||||
NuVasive, Inc.* |
1,737 | 92,686 | ||||||
OraSure Technologies, Inc.* (a) |
5,790 | 61,779 | ||||||
Ortho Clinical Diagnostics Holdings plc* |
7,527 | 148,809 | ||||||
Orthofix Medical, Inc.* |
772 | 27,777 | ||||||
OrthoPediatrics Corp.* (a) |
1,544 | 109,887 | ||||||
Outset Medical, Inc.* (a) |
579 | 30,843 | ||||||
Penumbra, Inc.* (a) |
965 | 266,871 | ||||||
Pulmonx Corp.* |
4,439 | 172,810 | ||||||
Quidel Corp.* (a) |
9,650 | 1,281,231 | ||||||
ResMed, Inc. |
3,860 | 1,014,833 | ||||||
Retractable Technologies, Inc.* (a) |
5,790 | 54,773 | ||||||
Senseonics Holdings, Inc.* (a) |
28,950 | 101,325 | ||||||
Shockwave Medical, Inc.* |
2,123 | 453,685 |
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) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Silk Road Medical, Inc.* (a) |
2,895 | $ | 169,966 | |||||
STAAR Surgical Co.* (a) |
2,316 | 274,353 | ||||||
STERIS plc(a) |
3,088 | 721,789 | ||||||
Stryker Corp. |
9,264 | 2,464,873 | ||||||
Surmodics, Inc.* (a) |
386 | 21,485 | ||||||
Tandem Diabetes Care, Inc.* |
3,474 | 473,610 | ||||||
Teleflex, Inc. |
1,544 | 551,115 | ||||||
Varex Imaging Corp.* (a) |
5,211 | 139,915 | ||||||
West Pharmaceutical Services, Inc. |
1,930 | 829,668 | ||||||
Wright Medical Group NV* ‡ (d) |
4,032 | — | ||||||
Zimmer Biomet Holdings, Inc. |
5,018 | 718,176 | ||||||
49,712,533 | ||||||||
Health Care Providers & Services – 2.7% | ||||||||
1Life Healthcare, Inc.* (a) |
579 | 12,541 | ||||||
Acadia Healthcare Co., Inc.* |
6,562 | 406,844 | ||||||
Accolade, Inc.* |
5,211 | 207,346 | ||||||
Addus HomeCare Corp.* |
1,544 | 144,364 | ||||||
Amedisys, Inc.* (a) |
965 | 163,413 | ||||||
AmerisourceBergen Corp. |
5,404 | 659,396 | ||||||
AMN Healthcare Services, Inc.* |
3,667 | 361,933 | ||||||
Anthem, Inc. |
8,106 | 3,527,164 | ||||||
Apollo Medical Holdings, Inc.* (a) |
1,737 | 119,210 | ||||||
Brookdale Senior Living, Inc.* (a) |
58,093 | 377,605 | ||||||
Cardinal Health, Inc. |
10,615 | 507,503 | ||||||
Castle Biosciences, Inc.* (a) |
965 | 60,168 | ||||||
Centene Corp.* |
22,002 | 1,567,422 | ||||||
Chemed Corp.(a) |
386 | 186,149 | ||||||
Cigna Corp. |
11,387 | 2,432,377 | ||||||
Community Health Systems, Inc.* (a) |
14,861 | 194,679 | ||||||
CorVel Corp.* |
193 | 35,361 | ||||||
Covetrus, Inc.* |
3,088 | 62,347 | ||||||
CVS Health Corp. |
43,232 | 3,859,753 | ||||||
DaVita, Inc.* |
2,895 | 298,880 | ||||||
Encompass Health Corp. |
2,702 | 171,739 | ||||||
Ensign Group, Inc. (The)(a) |
2,509 | 195,727 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Fulgent Genetics, Inc.* (a) |
3,667 | $ | 304,068 | |||||
Guardant Health, Inc.* (a) |
1,737 | 202,864 | ||||||
HCA Healthcare, Inc. |
8,878 | 2,223,584 | ||||||
HealthEquity, Inc.* (a) |
2,123 | 140,500 | ||||||
Henry Schein, Inc.* |
4,632 | 353,653 | ||||||
Humana, Inc. |
4,246 | 1,966,577 | ||||||
InfuSystem Holdings, Inc.* |
4,825 | 80,240 | ||||||
Innovage Holding Corp.* (a) |
7,527 | 49,829 | ||||||
Laboratory Corp. of America Holdings* |
3,474 | 997,108 | ||||||
LHC Group, Inc.* |
965 | 129,879 | ||||||
Magellan Health, Inc.* (a) |
1,351 | 128,115 | ||||||
McKesson Corp. |
5,597 | 1,163,504 | ||||||
MEDNAX, Inc.* (a) |
16,019 | 436,197 | ||||||
ModivCare, Inc.* (a) |
386 | 62,829 | ||||||
Molina Healthcare, Inc.* |
2,123 | 627,814 | ||||||
National HealthCare Corp. |
4,632 | 323,962 | ||||||
National Research Corp.(a) |
386 | 16,714 | ||||||
Option Care Health, Inc.* |
10,808 | 295,383 | ||||||
Owens & Minor, Inc.(a) |
14,282 | 512,438 | ||||||
Patterson Cos., Inc.(a) |
21,809 | 681,749 | ||||||
Pennant Group, Inc. (The)* (a) |
2,895 | 74,025 | ||||||
Premier, Inc., Class A |
26,055 | 1,014,842 | ||||||
Privia Health Group, Inc.* (a) |
3,667 | 94,242 | ||||||
Progyny, Inc.* (a) |
3,474 | 213,408 | ||||||
Quest Diagnostics, Inc. |
4,439 | 651,556 | ||||||
R1 RCM, Inc.* |
3,667 | 79,574 | ||||||
RadNet, Inc.* |
4,246 | 132,008 | ||||||
Select Medical Holdings Corp. |
21,616 | 718,084 | ||||||
Signify Health, Inc., Class A* (a) |
4,439 | 71,335 | ||||||
Surgery Partners, Inc.* |
5,983 | 246,141 | ||||||
Tenet Healthcare Corp.* (a) |
25,669 | 1,839,441 | ||||||
Tivity Health, Inc.* (a) |
6,755 | 169,010 | ||||||
Triple-S Management Corp., Class B* (a) |
5,790 | 204,329 | ||||||
UnitedHealth Group, Inc. |
32,038 | 14,752,538 | ||||||
Universal Health Services, Inc., Class B |
2,509 | 311,367 | ||||||
US Physical Therapy, Inc. |
386 | 41,634 |
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) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
Vivos Therapeutics, Inc.* (a) |
9,264 | $ | 33,628 | |||||
46,896,090 | ||||||||
Health Care Technology – 0.4% | ||||||||
Allscripts Healthcare Solutions, Inc.* (a) |
38,214 | 526,589 | ||||||
Cerner Corp. |
9,843 | 731,237 | ||||||
Certara, Inc.* (a) |
4,246 | 175,402 | ||||||
Change Healthcare, Inc.* |
52,882 | 1,138,549 | ||||||
Computer Programs and Systems, Inc.* (a) |
3,860 | 139,346 | ||||||
Evolent Health, Inc., Class A* (a) |
9,264 | 271,157 | ||||||
GoodRx Holdings, Inc., Class A* (a) |
4,246 | 189,372 | ||||||
Health Catalyst, Inc.* (a) |
4,632 | 243,829 | ||||||
HealthStream, Inc.* (a) |
386 | 10,271 | ||||||
Inovalon Holdings, Inc., Class A* (a) |
6,948 | 283,409 | ||||||
Inspire Medical Systems, Inc.* |
1,544 | 416,232 | ||||||
Multiplan Corp.* (a) |
22,581 | 97,324 | ||||||
Omnicell, Inc.* (a) |
2,509 | 446,978 | ||||||
Phreesia, Inc.* (a) |
2,702 | 190,599 | ||||||
Schrodinger, Inc.* |
193 | 10,534 | ||||||
Teladoc Health, Inc.* (a) |
3,474 | 519,676 | ||||||
Veeva Systems, Inc., Class A* |
3,281 | 1,040,110 | ||||||
Vocera Communications, Inc.* (a) |
2,123 | 120,119 | ||||||
6,550,733 | ||||||||
Hotels, Restaurants & Leisure – 1.9% | ||||||||
Airbnb, Inc., Class A* |
9,650 | 1,646,869 | ||||||
Aramark |
6,755 | 246,422 | ||||||
Bally’s Corp.* |
2,316 | 106,096 | ||||||
BJ’s Restaurants, Inc.* (a) |
2,895 | 96,461 | ||||||
Bloomin’ Brands, Inc.* |
7,527 | 162,734 | ||||||
Booking Holdings, Inc.* |
1,158 | 2,803,263 | ||||||
Boyd Gaming Corp.* |
4,439 | 283,119 | ||||||
Brinker International, Inc.* |
4,632 | 194,359 | ||||||
Caesars Entertainment, Inc.* |
6,948 | 760,528 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Carnival Corp.* (a) |
21,423 | $ | 474,734 | |||||
Carrols Restaurant Group, Inc.(a) |
20,844 | 76,497 | ||||||
Cheesecake Factory, Inc. (The)* (a) |
3,860 | 156,870 | ||||||
Chipotle Mexican Grill, Inc.* |
772 | 1,373,411 | ||||||
Choice Hotels International, Inc. |
965 | 135,698 | ||||||
Churchill Downs, Inc. |
1,544 | 355,120 | ||||||
Chuy’s Holdings, Inc.* (a) |
2,316 | 67,535 | ||||||
Cracker Barrel Old Country Store, Inc. |
1,544 | 205,615 | ||||||
Darden Restaurants, Inc. |
3,088 | 445,104 | ||||||
Dave & Buster’s Entertainment, Inc.* |
4,825 | 179,152 | ||||||
Del Taco Restaurants, Inc.(a) |
6,948 | 57,946 | ||||||
Denny’s Corp.* (a) |
1,930 | 30,687 | ||||||
Dine Brands Global, Inc.* (a) |
1,737 | 146,794 | ||||||
Domino’s Pizza, Inc. |
1,351 | 660,598 | ||||||
DraftKings, Inc., Class A* (a) |
7,141 | 332,699 | ||||||
Everi Holdings, Inc.* (a) |
9,071 | 217,704 | ||||||
Expedia Group, Inc.* |
4,053 | 666,354 | ||||||
Golden Nugget Online Gaming, Inc.* |
3,281 | 55,350 | ||||||
Hilton Grand Vacations, Inc.* (a) |
6,369 | 320,233 | ||||||
Hilton Worldwide Holdings, Inc.* |
7,527 | 1,083,512 | ||||||
Hyatt Hotels Corp., Class A* (a) |
1,158 | 98,662 | ||||||
Jack in the Box, Inc.(a) |
1,737 | 171,876 | ||||||
Las Vegas Sands Corp.* |
6,369 | 247,181 | ||||||
Lindblad Expeditions Holdings, Inc.* (a) |
7,141 | 106,758 | ||||||
Marriott International, Inc., Class A* |
7,334 | 1,173,587 | ||||||
Marriott Vacations Worldwide Corp. |
2,895 | 455,152 | ||||||
McDonald’s Corp. |
20,072 | 4,928,680 | ||||||
MGM Resorts International |
12,931 | 609,826 | ||||||
Norwegian Cruise Line Holdings Ltd.* (a) |
14,475 | 372,297 | ||||||
Papa John’s International, Inc. |
772 | 95,790 |
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) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Penn National Gaming, Inc.* (a) |
5,404 | $ | 386,926 | |||||
Planet Fitness, Inc., Class A* |
2,895 | 230,297 | ||||||
Red Robin Gourmet Burgers, Inc.* (a) |
2,509 | 49,854 | ||||||
Red Rock Resorts, Inc., Class A* (a) |
2,316 | 126,014 | ||||||
Royal Caribbean Cruises Ltd.* (a) |
5,018 | 423,670 | ||||||
Ruth’s Hospitality Group, Inc.* (a) |
5,597 | 108,246 | ||||||
Scientific Games Corp.* (a) |
22,967 | 1,838,508 | ||||||
SeaWorld Entertainment, Inc.* |
3,860 | 245,110 | ||||||
Shake Shack, Inc., Class A* (a) |
965 | 66,749 | ||||||
Six Flags Entertainment Corp.* (a) |
5,597 | 230,205 | ||||||
Starbucks Corp. |
32,231 | 3,418,742 | ||||||
Texas Roadhouse, Inc.(a) |
2,702 | 239,965 | ||||||
Travel + Leisure Co.(a) |
6,562 | 356,579 | ||||||
Vail Resorts, Inc. |
1,158 | 399,174 | ||||||
Wendy’s Co. (The) |
5,790 | 129,117 | ||||||
Wingstop, Inc.(a) |
2,316 | 399,441 | ||||||
Wyndham Hotels & Resorts, Inc. |
3,474 | 293,449 | ||||||
Wynn Resorts Ltd.* (a) |
3,860 | 346,628 | ||||||
Yum! Brands, Inc. |
9,071 | 1,133,331 | ||||||
32,023,278 | ||||||||
Household Durables – 0.8% | ||||||||
Aterian, Inc.* |
3,088 | 19,732 | ||||||
Beazer Homes USA, Inc.* |
2,316 | 41,943 | ||||||
Cavco Industries, Inc.* |
193 | 46,393 | ||||||
Century Communities, Inc.(a) |
7,913 | 530,646 | ||||||
DR Horton, Inc. |
11,773 | 1,050,976 | ||||||
Ethan Allen Interiors, Inc. |
4,632 | 107,509 | ||||||
Garmin Ltd. |
3,860 | 554,296 | ||||||
GoPro, Inc., Class A* (a) |
3,088 | 26,588 | ||||||
Green Brick Partners, Inc.* (a) |
8,106 | 211,161 | ||||||
Helen of Troy Ltd.* (a) |
965 | 217,077 | ||||||
Installed Building Products, Inc.(a) |
772 | 98,083 |
Investments | Shares | Value | ||||||
Household Durables – (continued) | ||||||||
iRobot Corp.* (a) |
772 | $ | 64,400 | |||||
KB Home(a) |
22,002 | 883,380 | ||||||
La-Z-Boy, Inc. |
6,176 | 205,290 | ||||||
Leggett & Platt, Inc.(a) |
9,071 | 424,976 | ||||||
Lennar Corp., Class A |
9,843 | 983,611 | ||||||
Lennar Corp., Class B |
579 | 47,524 | ||||||
LGI Homes, Inc.* (a) |
5,597 | 835,632 | ||||||
Lovesac Co. (The)* (a) |
1,351 | 105,392 | ||||||
M/I Homes, Inc.* (a) |
7,913 | 453,098 | ||||||
MDC Holdings, Inc.(a) |
13,896 | 680,626 | ||||||
Meritage Homes Corp.* |
9,264 | 1,007,089 | ||||||
Mohawk Industries, Inc.* |
1,737 | 307,814 | ||||||
Newell Brands, Inc. |
13,124 | 300,408 | ||||||
NVR, Inc.* |
122 | 597,166 | ||||||
PulteGroup, Inc. |
10,229 | 491,810 | ||||||
Skyline Champion Corp.* |
1,930 | 122,208 | ||||||
Sonos, Inc.* (a) |
5,790 | 188,870 | ||||||
Taylor Morrison Home Corp., Class A* (a) |
32,231 | 984,012 | ||||||
Tempur Sealy International, Inc. |
9,457 | 420,553 | ||||||
Toll Brothers, Inc. |
5,983 | 359,997 | ||||||
TopBuild Corp.* (a) |
1,351 | 347,167 | ||||||
Tri Pointe Homes, Inc.* |
33,003 | 798,343 | ||||||
Tupperware Brands Corp.* (a) |
11,001 | 244,662 | ||||||
Universal Electronics, Inc.* |
2,895 | 119,216 | ||||||
Vizio Holding Corp., Class A* (a) |
3,474 | 71,356 | ||||||
Vuzix Corp.* (a) |
6,562 | 70,148 | ||||||
Whirlpool Corp. |
2,316 | 488,282 | ||||||
14,507,434 | ||||||||
Household Products – 0.9% | ||||||||
Central Garden & Pet Co.* (a) |
1,737 | 89,594 | ||||||
Central Garden & Pet Co., Class A* |
10,808 | 499,330 | ||||||
Church & Dwight Co., Inc.(a) |
8,299 | 725,001 | ||||||
Clorox Co. (The) |
2,509 | 408,992 | ||||||
Colgate-Palmolive Co. |
21,423 | 1,632,218 | ||||||
Energizer Holdings, Inc.(a) |
11,580 | 422,323 | ||||||
Kimberly-Clark Corp. |
11,580 | 1,499,494 |
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) | ||||||||
Household Products – (continued) | ||||||||
Procter & Gamble Co. (The) |
67,550 | $ | 9,658,975 | |||||
Reynolds Consumer Products, Inc.(a) |
8,299 | 223,907 | ||||||
Spectrum Brands Holdings, Inc.(a) |
9,650 | 904,687 | ||||||
WD-40 Co.(a) |
386 | 87,622 | ||||||
16,152,143 | ||||||||
Independent Power and Renewable Electricity Producers – 0.1% |
||||||||
AES Corp. (The) |
23,932 | 601,411 | ||||||
Clearway Energy, Inc., Class A |
3,667 | 120,974 | ||||||
Clearway Energy, Inc., Class C |
2,509 | 89,019 | ||||||
Ormat Technologies, Inc.(a) |
1,544 | 111,678 | ||||||
Sunnova Energy International, Inc.* (a) |
6,562 | 292,403 | ||||||
Vistra Corp. |
17,563 | 344,059 | ||||||
1,559,544 | ||||||||
Industrial Conglomerates – 0.7% | ||||||||
3M Co. |
18,914 | 3,379,554 | ||||||
General Electric Co. |
28,950 | 3,035,986 | ||||||
Honeywell International, Inc. |
19,300 | 4,219,366 | ||||||
Raven Industries, Inc.* |
3,088 | 178,548 | ||||||
Roper Technologies, Inc.(a) |
3,088 | 1,506,543 | ||||||
12,319,997 | ||||||||
Insurance – 2.6% | ||||||||
Aflac, Inc. |
22,774 | 1,222,281 | ||||||
Alleghany Corp.* |
386 | 251,433 | ||||||
Allstate Corp. (The) |
10,422 | 1,288,889 | ||||||
Ambac Financial Group, Inc.* (a) |
1,351 | 22,845 | ||||||
American Equity Investment Life Holding Co.(a) |
23,353 | 744,260 | ||||||
American Financial Group, Inc. |
2,895 | 393,836 | ||||||
American International Group, Inc. |
26,827 | 1,585,207 | ||||||
American National Group, Inc.(a) |
2,509 | 475,982 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
AMERISAFE, Inc.(a) |
579 | $ | 34,329 | |||||
Aon plc, Class A |
5,790 | 1,852,337 | ||||||
Arch Capital Group Ltd.* |
14,861 | 621,487 | ||||||
Argo Group International Holdings Ltd.(a) |
5,790 | 319,029 | ||||||
Arthur J Gallagher & Co. |
5,018 | 841,368 | ||||||
Assurant, Inc. |
2,316 | 373,594 | ||||||
Assured Guaranty Ltd.(a) |
19,879 | 1,104,875 | ||||||
Athene Holding Ltd., Class A* |
6,369 | 554,167 | ||||||
Axis Capital Holdings Ltd. |
15,633 | 814,010 | ||||||
Brighthouse Financial, Inc.* (a) |
18,528 | 930,661 | ||||||
Brown & Brown, Inc. |
6,176 | 389,767 | ||||||
Chubb Ltd. |
15,054 | 2,941,251 | ||||||
Cincinnati Financial Corp.(a) |
4,246 | 515,634 | ||||||
CNO Financial Group, Inc.(a) |
34,740 | 838,624 | ||||||
Employers Holdings, Inc.(a) |
965 | 37,249 | ||||||
Enstar Group Ltd.* |
3,088 | 712,649 | ||||||
Erie Indemnity Co., Class A(a) |
965 | 198,607 | ||||||
Everest Re Group Ltd.(a) |
1,158 | 302,817 | ||||||
Fidelity National Financial, Inc. |
11,001 | 527,058 | ||||||
First American Financial Corp. |
26,827 | 1,962,127 | ||||||
Genworth Financial, Inc., Class A* |
84,727 | 348,228 | ||||||
Globe Life, Inc. |
2,895 | 257,713 | ||||||
Goosehead Insurance, Inc., Class A(a) |
965 | 139,249 | ||||||
Greenlight Capital Re Ltd., Class A* (a) |
19,300 | 143,399 | ||||||
Hanover Insurance Group, Inc. (The) |
8,106 | 1,021,356 | ||||||
Hartford Financial Services Group, Inc. (The) |
13,124 | 957,133 | ||||||
HCI Group, Inc.(a) |
1,351 | 181,047 | ||||||
Horace Mann Educators Corp. |
6,562 | 257,099 | ||||||
Kemper Corp. |
12,352 | 784,105 | ||||||
Kinsale Capital Group, Inc.(a) |
1,351 | 252,840 |
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) | ||||||||
Insurance – (continued) | ||||||||
Lemonade, Inc.* (a) |
193 | $ | 11,997 | |||||
Lincoln National Corp.(a) |
7,141 | 515,223 | ||||||
Loews Corp. |
9,071 | 508,611 | ||||||
Markel Corp.* |
386 | 506,868 | ||||||
Marsh & McLennan Cos., Inc. |
14,668 | 2,446,622 | ||||||
MBIA, Inc.* (a) |
6,369 | 98,974 | ||||||
Mercury General Corp.(a) |
7,141 | 389,113 | ||||||
MetLife, Inc. |
26,441 | 1,660,495 | ||||||
Old Republic International Corp. |
14,668 | 378,874 | ||||||
Oscar Health, Inc., Class A* |
4,825 | 83,376 | ||||||
Palomar Holdings, Inc.* (a) |
1,544 | 141,199 | ||||||
Primerica, Inc. |
2,123 | 357,174 | ||||||
Principal Financial Group, Inc. |
9,650 | 647,418 | ||||||
ProAssurance Corp. |
3,860 | 88,433 | ||||||
Progressive Corp. (The) |
18,914 | 1,794,560 | ||||||
Prudential Financial, Inc. |
13,317 | 1,465,536 | ||||||
Reinsurance Group of America, Inc. |
1,158 | 136,737 | ||||||
RenaissanceRe Holdings Ltd.(a) |
2,123 | 301,041 | ||||||
RLI Corp. |
1,351 | 146,327 | ||||||
Safety Insurance Group, Inc.(a) |
1,737 | 136,198 | ||||||
Selective Insurance Group, Inc.(a) |
13,896 | 1,089,030 | ||||||
Selectquote, Inc.* (a) |
10,422 | 138,508 | ||||||
SiriusPoint Ltd.* (a) |
6,369 | 59,869 | ||||||
Stewart Information Services Corp.(a) |
6,948 | 494,489 | ||||||
Travelers Cos., Inc. (The) |
8,685 | 1,397,243 | ||||||
Trupanion, Inc.* (a) |
2,895 | 296,448 | ||||||
Universal Insurance Holdings, Inc.(a) |
15,440 | 228,049 | ||||||
Unum Group |
49,794 | 1,268,253 | ||||||
W R Berkley Corp. |
3,474 | 276,530 | ||||||
White Mountains Insurance Group Ltd. |
193 | 203,613 | ||||||
Willis Towers Watson plc |
3,474 | 841,681 | ||||||
44,307,031 |
Investments | Shares | Value | ||||||
Interactive Media & Services – 4.5% | ||||||||
Alphabet, Inc., Class A* |
8,299 | $ | 24,572,675 | |||||
Alphabet, Inc., Class C* |
7,720 | 22,892,965 | ||||||
Angi, Inc., Class A* |
1,737 | 21,765 | ||||||
Bumble, Inc., Class A* (a) |
2,316 | 121,636 | ||||||
Cargurus, Inc.* (a) |
5,983 | 200,670 | ||||||
Cars.com, Inc.* |
20,072 | 261,337 | ||||||
fuboTV, Inc.* (a) |
2,509 | 74,793 | ||||||
IAC/InterActiveCorp* (a) |
1,351 | 205,852 | ||||||
Match Group, Inc.* (a) |
7,720 | 1,164,022 | ||||||
Meta Platforms, Inc., Class A* |
65,813 | 21,295,112 | ||||||
Pinterest, Inc., Class A* |
12,931 | 577,240 | ||||||
Snap, Inc., Class A* |
28,757 | 1,512,043 | ||||||
TripAdvisor, Inc.* |
3,474 | 114,538 | ||||||
Twitter, Inc.* |
19,879 | 1,064,322 | ||||||
Yelp, Inc.* |
6,562 | 253,490 | ||||||
Ziff Davis, Inc.* |
11,580 | 1,485,367 | ||||||
Zillow Group, Inc., Class A* (a) |
2,509 | 265,251 | ||||||
Zillow Group, Inc., Class C* (a) |
3,474 | 360,011 | ||||||
ZoomInfo Technologies, Inc., Class A* |
9,457 | 635,699 | ||||||
77,078,788 | ||||||||
Internet & Direct Marketing Retail – 2.8% | ||||||||
1-800-Flowers.com, Inc., Class A* (a) |
1,544 | 49,593 | ||||||
Amazon.com, Inc.* |
11,966 | 40,354,497 | ||||||
Chewy, Inc., Class A* (a) |
2,509 | 190,182 | ||||||
DoorDash, Inc., Class A* |
4,439 | 864,717 | ||||||
eBay, Inc. |
21,037 | 1,613,959 | ||||||
Etsy, Inc.* (a) |
3,088 | 774,131 | ||||||
Groupon, Inc.* (a) |
2,895 | 61,432 | ||||||
MercadoLibre, Inc.* |
1,158 | 1,715,021 | ||||||
Overstock.com, Inc.* (a) |
2,702 | 257,311 | ||||||
PetMed Express, Inc.(a) |
772 | 21,948 | ||||||
Qurate Retail, Inc., Series A |
95,149 | 993,356 | ||||||
Remark Holdings, Inc.* (a) |
37,056 | 78,188 | ||||||
Revolve Group, Inc.* |
1,930 | 144,827 | ||||||
Shutterstock, Inc. |
1,930 | 233,820 | ||||||
Stitch Fix, Inc., Class A* |
1,158 | 40,067 |
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) | ||||||||
Internet & Direct Marketing Retail – (continued) | ||||||||
Wayfair, Inc., Class A* (a) |
2,123 | $ | 528,839 | |||||
47,921,888 | ||||||||
IT Services – 3.8% | ||||||||
Accenture plc, Class A(a) |
17,177 | 6,162,936 | ||||||
Akamai Technologies, Inc.* |
5,404 | 569,906 | ||||||
Alliance Data Systems Corp. |
10,422 | 888,475 | ||||||
Automatic Data Processing, Inc. |
12,159 | 2,729,574 | ||||||
BigCommerce Holdings, Inc., Series 1* |
4,246 | 196,208 | ||||||
BM Technologies, Inc.* |
1,477 | 13,204 | ||||||
Broadridge Financial Solutions, Inc. |
3,474 | 619,796 | ||||||
Cantaloupe, Inc.* (a) |
3,088 | 38,600 | ||||||
Cass Information Systems, Inc.(a) |
3,474 | 142,399 | ||||||
Cloudflare, Inc., Class A* (a) |
6,755 | 1,315,334 | ||||||
Cognizant Technology Solutions Corp., Class A |
18,142 | 1,416,709 | ||||||
Concentrix Corp. |
1,737 | 308,630 | ||||||
Conduent, Inc.* |
51,917 | 350,440 | ||||||
CSG Systems International, Inc.(a) |
10,615 | 531,281 | ||||||
DXC Technology Co.* |
11,966 | 389,733 | ||||||
EPAM Systems, Inc.* |
1,737 | 1,169,418 | ||||||
Euronet Worldwide, Inc.* |
1,351 | 151,569 | ||||||
EVERTEC, Inc. |
1,930 | 87,255 | ||||||
Evo Payments, Inc., Class A* |
1,544 | 33,474 | ||||||
ExlService Holdings, Inc.* |
1,158 | 142,005 | ||||||
Fastly, Inc., Class A* (a) |
2,509 | 126,980 | ||||||
Fidelity National Information Services, Inc. |
15,826 | 1,752,571 | ||||||
Fiserv, Inc.* |
19,107 | 1,881,848 | ||||||
FleetCor Technologies, Inc.* |
1,737 | 429,751 | ||||||
Gartner, Inc.* |
2,702 | 896,821 | ||||||
Genpact Ltd. |
4,053 | 200,016 | ||||||
Global Payments, Inc. |
7,334 | 1,048,689 | ||||||
GoDaddy, Inc., Class A* (a) |
5,983 | 413,844 | ||||||
International Business Machines Corp. |
29,529 | 3,694,078 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
International Money Express, Inc.* |
2,895 | $ | 48,462 | |||||
Jack Henry & Associates, Inc. |
2,123 | 353,437 | ||||||
Limelight Networks, Inc.* (a) |
4,053 | 12,078 | ||||||
LiveRamp Holdings, Inc.* (a) |
2,123 | 113,602 | ||||||
Mastercard, Inc., Class A |
23,546 | 7,900,154 | ||||||
MAXIMUS, Inc.(a) |
3,281 | 277,474 | ||||||
MongoDB, Inc.* (a) |
1,737 | 905,481 | ||||||
Okta, Inc.* |
3,667 | 906,409 | ||||||
Paya Holdings, Inc.* |
9,650 | 87,911 | ||||||
Paychex, Inc. |
8,492 | 1,046,894 | ||||||
PayPal Holdings, Inc.* |
31,845 | 7,406,828 | ||||||
Perficient, Inc.* (a) |
1,158 | 143,129 | ||||||
Sabre Corp.* (a) |
26,055 | 270,451 | ||||||
Shift4 Payments, Inc., Class A* (a) |
1,351 | 85,289 | ||||||
Snowflake, Inc., Class A* |
6,369 | 2,253,607 | ||||||
SolarWinds Corp.(a) |
6,369 | 102,541 | ||||||
Square, Inc., Class A* |
10,615 | 2,701,517 | ||||||
Switch, Inc., Class A |
6,176 | 156,129 | ||||||
TTEC Holdings, Inc. |
579 | 54,652 | ||||||
Tucows, Inc., Class A* (a) |
386 | 31,768 | ||||||
Twilio, Inc., Class A* |
4,246 | 1,237,115 | ||||||
Unisys Corp.* (a) |
16,984 | 434,281 | ||||||
VeriSign, Inc.* |
2,702 | 601,654 | ||||||
Verra Mobility Corp.* (a) |
14,861 | 221,132 | ||||||
Visa, Inc., Class A(a) |
45,741 | 9,686,572 | ||||||
Western Union Co. (The) |
19,879 | 362,195 | ||||||
WEX, Inc.* (a) |
1,930 | 288,921 | ||||||
65,391,227 | ||||||||
Leisure Products – 0.2% | ||||||||
Acushnet Holdings Corp. |
1,158 | 58,989 | ||||||
American Outdoor Brands, Inc.* |
4,053 | 92,327 | ||||||
Brunswick Corp. |
3,088 | 287,462 | ||||||
Callaway Golf Co.* |
4,439 | 120,075 | ||||||
Hasbro, Inc. |
3,281 | 314,189 | ||||||
Johnson Outdoors, Inc., Class A(a) |
386 | 40,985 | ||||||
Malibu Boats, Inc., Class A* |
2,895 | 204,416 | ||||||
MasterCraft Boat Holdings, Inc.* (a) |
5,790 | 155,056 |
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) | ||||||||
Leisure Products – (continued) | ||||||||
Mattel, Inc.* (a) |
13,317 | $ | 290,444 | |||||
Peloton Interactive, Inc., Class A* |
7,141 | 652,973 | ||||||
Polaris, Inc.(a) |
2,895 | 332,780 | ||||||
Smith & Wesson Brands, Inc. |
11,773 | 253,120 | ||||||
Sturm Ruger & Co., Inc. |
2,316 | 182,686 | ||||||
Vista Outdoor, Inc.* |
11,773 | 492,582 | ||||||
YETI Holdings, Inc.* (a) |
2,895 | 284,665 | ||||||
3,762,749 | ||||||||
Life Sciences Tools & Services – 1.1% | ||||||||
10X Genomics, Inc., Class A* (a) |
2,123 | 342,376 | ||||||
Adaptive Biotechnologies Corp.* (a) |
7,913 | 264,373 | ||||||
Agilent Technologies, Inc. |
8,106 | 1,276,614 | ||||||
Avantor, Inc.* |
13,510 | 545,534 | ||||||
Berkeley Lights, Inc.* |
5,983 | 139,105 | ||||||
Bio-Rad Laboratories, Inc., Class A* |
579 | 460,120 | ||||||
Bio-Techne Corp. |
965 | 505,322 | ||||||
Bruker Corp. |
2,702 | 216,971 | ||||||
Charles River Laboratories International, Inc.* |
1,351 | 606,167 | ||||||
Codexis, Inc.* (a) |
8,299 | 288,556 | ||||||
Illumina, Inc.* |
4,246 | 1,762,345 | ||||||
IQVIA Holdings, Inc.* |
5,404 | 1,412,714 | ||||||
Maravai LifeSciences Holdings, Inc., Class A* |
7,527 | 318,317 | ||||||
Medpace Holdings, Inc.* |
965 | 218,621 | ||||||
Mettler-Toledo International, Inc.* |
579 | 857,429 | ||||||
NanoString Technologies, Inc.* |
1,158 | 55,931 | ||||||
NeoGenomics, Inc.* (a) |
7,334 | 337,364 | ||||||
Pacific Biosciences of California, Inc.* (a) |
11,387 | 301,528 | ||||||
PerkinElmer, Inc. |
4,632 | 819,354 | ||||||
PPD, Inc.* |
5,790 | 273,114 | ||||||
Repligen Corp.* |
1,544 | 448,532 | ||||||
Seer, Inc.* (a) |
2,895 | 106,883 | ||||||
Sotera Health Co.* (a) |
3,088 | 76,274 |
Investments | Shares | Value | ||||||
Life Sciences Tools & Services – (continued) | ||||||||
Syneos Health, Inc.* |
4,632 | $ | 432,351 | |||||
Thermo Fisher Scientific, Inc. |
10,615 | 6,720,038 | ||||||
Waters Corp.* |
1,737 | 638,434 | ||||||
19,424,367 | ||||||||
Machinery – 1.8% | ||||||||
AGCO Corp. |
2,702 | 330,211 | ||||||
Alamo Group, Inc.(a) |
386 | 58,363 | ||||||
Albany International Corp., Class A(a) |
2,316 | 186,785 | ||||||
Allison Transmission Holdings, Inc. |
21,616 | 721,110 | ||||||
Altra Industrial Motion Corp.(a) |
4,053 | 211,364 | ||||||
Astec Industries, Inc. |
1,737 | 92,721 | ||||||
Barnes Group, Inc. |
1,544 | 64,755 | ||||||
Blue Bird Corp.* (a) |
3,860 | 75,695 | ||||||
Caterpillar, Inc. |
14,475 | 2,953,045 | ||||||
Chart Industries, Inc.* (a) |
2,316 | 411,136 | ||||||
CIRCOR International, Inc.* (a) |
2,702 | 77,115 | ||||||
Colfax Corp.* |
8,878 | 458,282 | ||||||
Columbus McKinnon Corp. |
772 | 36,492 | ||||||
Crane Co. |
12,159 | 1,255,782 | ||||||
Cummins, Inc. |
5,018 | 1,203,517 | ||||||
Deere & Co. |
8,106 | 2,774,765 | ||||||
Desktop Metal, Inc., Class A* |
15,633 | 109,275 | ||||||
Donaldson Co., Inc. |
5,018 | 301,130 | ||||||
Douglas Dynamics, Inc. |
4,632 | 195,934 | ||||||
Dover Corp. |
3,860 | 652,649 | ||||||
Enerpac Tool Group Corp.(a) |
4,632 | 96,762 | ||||||
EnPro Industries, Inc. |
1,351 | 121,131 | ||||||
ESCO Technologies, Inc. |
2,895 | 244,801 | ||||||
Evoqua Water Technologies Corp.* (a) |
5,597 | 234,122 | ||||||
Federal Signal Corp. |
1,930 | 82,623 | ||||||
Flowserve Corp. |
3,088 | 103,819 | ||||||
Fortive Corp. |
9,071 | 686,765 | ||||||
Franklin Electric Co., Inc.(a) |
1,158 | 100,028 | ||||||
Gates Industrial Corp. plc* |
22,581 | 371,232 | ||||||
Gorman-Rupp Co. (The)(a) |
1,737 | 73,857 |
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) | ||||||||
Machinery – (continued) | ||||||||
Graco, Inc. |
4,439 | $ | 333,724 | |||||
Greenbrier Cos., Inc. (The)(a) |
4,439 | 182,088 | ||||||
Helios Technologies, Inc.(a) |
386 | 35,145 | ||||||
Hillenbrand, Inc. |
18,914 | 859,830 | ||||||
Hydrofarm Holdings Group, Inc.* |
2,316 | 76,359 | ||||||
Hyster-Yale Materials Handling, Inc. |
386 | 18,543 | ||||||
Ideanomics, Inc.* (a) |
43,618 | 86,364 | ||||||
IDEX Corp. |
1,737 | 386,604 | ||||||
Illinois Tool Works, Inc. |
7,334 | 1,671,199 | ||||||
Ingersoll Rand, Inc.* |
8,685 | 466,906 | ||||||
ITT, Inc. |
3,474 | 326,799 | ||||||
John Bean Technologies Corp.(a) |
1,544 | 228,126 | ||||||
Kadant, Inc.(a) |
386 | 85,738 | ||||||
Kennametal, Inc.(a) |
5,211 | 207,137 | ||||||
Lincoln Electric Holdings, Inc. |
2,509 | 357,282 | ||||||
Lindsay Corp. |
386 | 56,229 | ||||||
Luxfer Holdings plc(a) |
7,334 | 147,487 | ||||||
Manitowoc Co., Inc. (The)* |
3,474 | 74,448 | ||||||
Meritor, Inc.* |
22,581 | 549,622 | ||||||
Middleby Corp. (The)* |
2,316 | 422,531 | ||||||
Miller Industries, Inc. |
5,018 | 181,351 | ||||||
Mueller Industries, Inc.(a) |
16,598 | 873,719 | ||||||
Mueller Water Products, Inc., Class A(a) |
5,404 | 88,680 | ||||||
Nikola Corp.* (a) |
17,563 | 207,243 | ||||||
Nordson Corp. |
1,351 | 343,438 | ||||||
Oshkosh Corp. |
3,281 | 351,067 | ||||||
Otis Worldwide Corp. |
10,229 | 821,491 | ||||||
PACCAR, Inc. |
10,229 | 916,723 | ||||||
Parker-Hannifin Corp. |
3,474 | 1,030,354 | ||||||
Pentair plc(a) |
4,246 | 314,077 | ||||||
Proto Labs, Inc.* |
772 | 46,173 | ||||||
RBC Bearings, Inc.* (a) |
965 | 225,742 | ||||||
REV Group, Inc.(a) |
6,948 | 104,984 | ||||||
Snap-on, Inc. |
1,737 | 353,010 | ||||||
SPX Corp.* (a) |
1,544 | 89,691 | ||||||
SPX FLOW, Inc.(a) |
1,544 | 115,352 | ||||||
Standex International Corp. |
386 | 42,950 | ||||||
Stanley Black & Decker, Inc. |
5,211 | 936,573 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Tennant Co. |
386 | $ | 30,672 | |||||
Terex Corp. |
5,211 | 233,453 | ||||||
Timken Co. (The) |
15,440 | 1,095,468 | ||||||
Toro Co. (The) |
2,702 | 257,960 | ||||||
Trinity Industries, Inc.(a) |
3,088 | 86,618 | ||||||
Wabash National Corp. |
10,615 | 164,851 | ||||||
Watts Water Technologies, Inc., Class A |
772 | 146,695 | ||||||
Welbilt, Inc.* |
11,966 | 283,116 | ||||||
Westinghouse Air Brake Technologies Corp.(a) |
5,018 | 455,283 | ||||||
Woodward, Inc. |
2,316 | 261,592 | ||||||
Xylem, Inc.(a) |
4,246 | 554,485 | ||||||
31,470,238 | ||||||||
Marine – 0.1% | ||||||||
Eagle Bulk Shipping, Inc.* |
3,281 | 141,247 | ||||||
Kirby Corp.* |
5,018 | 262,994 | ||||||
Matson, Inc.(a) |
10,229 | 851,871 | ||||||
1,256,112 | ||||||||
Media – 1.3% | ||||||||
Advantage Solutions, Inc.* (a) |
7,913 | 67,577 | ||||||
Altice USA, Inc., Class A* |
7,913 | 128,982 | ||||||
AMC Networks, Inc., Class A* (a) |
4,632 | 184,307 | ||||||
Boston Omaha Corp., Class A* (a) |
1,544 | 54,735 | ||||||
Cable One, Inc.(a) |
193 | 330,264 | ||||||
Cardlytics, Inc.* (a) |
386 | 30,363 | ||||||
Charter Communications, Inc., Class A* (a) |
3,667 | 2,474,822 | ||||||
Clear Channel Outdoor Holdings, Inc.* |
72,761 | 211,007 | ||||||
Comcast Corp., Class A |
154,593 | 7,950,718 | ||||||
comScore, Inc.* (a) |
22,581 | 88,292 | ||||||
Discovery, Inc., Class A* (a) |
5,404 | 126,670 | ||||||
Discovery, Inc., Class C* (a) |
11,387 | 256,891 | ||||||
DISH Network Corp., Class A* |
8,492 | 348,766 | ||||||
Entercom Communications Corp.* (a) |
32,424 | 104,729 |
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) | ||||||||
Media – (continued) | ||||||||
EW Scripps Co. (The), Class A |
15,633 | $ | 290,774 | |||||
Fox Corp., Class A(a) |
8,685 | 345,142 | ||||||
Fox Corp., Class B |
9,071 | 335,264 | ||||||
Gannett Co., Inc.* (a) |
40,530 | 235,074 | ||||||
Gray Television, Inc.(a) |
24,125 | 565,490 | ||||||
iHeartMedia, Inc., Class A* |
11,001 | 213,199 | ||||||
Interpublic Group of Cos., Inc. (The) |
11,580 | 423,481 | ||||||
John Wiley & Sons, Inc., Class A(a) |
11,387 | 616,834 | ||||||
Liberty Broadband Corp., Class A* |
579 | 93,086 | ||||||
Liberty Broadband Corp., Class C* |
4,632 | 752,468 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class A* |
2,123 | 105,683 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class C* |
4,825 | 237,969 | ||||||
Magnite, Inc.* (a) |
8,299 | 224,322 | ||||||
Meredith Corp.* (a) |
9,071 | 528,295 | ||||||
New York Times Co. (The), Class A |
4,439 | 242,325 | ||||||
News Corp., Class A |
10,229 | 234,244 | ||||||
News Corp., Class B |
3,281 | 74,019 | ||||||
Nexstar Media Group, Inc., Class A |
9,071 | 1,360,015 | ||||||
Omnicom Group, Inc. |
5,983 | 407,323 | ||||||
Scholastic Corp.(a) |
965 | 34,923 | ||||||
Sinclair Broadcast Group, Inc., Class A(a) |
13,124 | 342,930 | ||||||
Sirius XM Holdings, Inc.(a) |
36,477 | 222,145 | ||||||
TechTarget, Inc.* |
1,158 | 109,211 | ||||||
TEGNA, Inc. |
55,005 | 1,081,398 | ||||||
ViacomCBS, Inc. |
17,177 | 622,151 | ||||||
ViacomCBS, Inc., Class A(a) |
1,351 | 52,594 | ||||||
WideOpenWest, Inc.* (a) |
12,352 | 235,306 | ||||||
22,343,788 | ||||||||
Metals & Mining – 0.8% | ||||||||
Alcoa Corp. |
45,548 | 2,092,931 | ||||||
Allegheny Technologies, Inc.* (a) |
12,159 | 195,760 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Alpha Metallurgical Resources, Inc.* (a) |
3,860 | $ | 238,509 | |||||
Arconic Corp.* |
25,862 | 760,860 | ||||||
Carpenter Technology Corp.(a) |
7,334 | 226,474 | ||||||
Century Aluminum Co.* (a) |
10,422 | 137,675 | ||||||
Cleveland-Cliffs, Inc.* (a) |
21,423 | 516,509 | ||||||
Coeur Mining, Inc.* (a) |
7,720 | 48,868 | ||||||
Commercial Metals Co.(a) |
30,687 | 987,508 | ||||||
Compass Minerals International, Inc.(a) |
3,474 | 227,894 | ||||||
Freeport-McMoRan, Inc. |
46,127 | 1,739,910 | ||||||
Hecla Mining Co.(a) |
30,687 | 177,371 | ||||||
Kaiser Aluminum Corp.(a) |
1,351 | 131,236 | ||||||
Materion Corp. |
579 | 41,792 | ||||||
McEwen Mining, Inc.* (a) |
93,412 | 102,753 | ||||||
MP Materials Corp.* (a) |
4,439 | 150,260 | ||||||
Newmont Corp. |
24,897 | 1,344,438 | ||||||
Nucor Corp. |
9,457 | 1,055,874 | ||||||
Reliance Steel & Aluminum Co. |
2,509 | 366,715 | ||||||
Royal Gold, Inc. |
1,737 | 171,998 | ||||||
Schnitzer Steel Industries, Inc., Class A |
3,281 | 176,518 | ||||||
Southern Copper Corp. |
1,930 | 115,781 | ||||||
Steel Dynamics, Inc. |
8,685 | 573,905 | ||||||
SunCoke Energy, Inc. |
386 | 2,787 | ||||||
TimkenSteel Corp.* (a) |
9,650 | 134,617 | ||||||
United States Steel Corp.(a) |
63,690 | 1,680,779 | ||||||
Warrior Met Coal, Inc. |
12,738 | 305,330 | ||||||
Worthington Industries, Inc. |
9,457 | 513,704 | ||||||
14,218,756 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.6% | ||||||||
AG Mortgage Investment Trust, Inc.(a) |
6,562 | 75,922 | ||||||
AGNC Investment Corp. |
9,457 | 150,555 | ||||||
Annaly Capital Management, Inc. |
33,582 | 284,104 | ||||||
Apollo Commercial Real Estate Finance, Inc.(a) |
22,581 | 341,876 | ||||||
Arbor Realty Trust, Inc.(a) |
36,284 | 729,671 | ||||||
Ares Commercial Real Estate Corp.(a) |
17,563 | 274,334 |
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) | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – (continued) | ||||||||
ARMOUR Residential REIT, Inc.(a) |
30,494 | $ | 320,797 | |||||
Blackstone Mortgage Trust, Inc., Class A(a) |
37,442 | 1,231,842 | ||||||
BrightSpire Capital, Inc. |
9,071 | 88,986 | ||||||
Broadmark Realty Capital, Inc.(a) |
18,721 | 193,201 | ||||||
Cherry Hill Mortgage Investment Corp.(a) |
14,861 | 135,532 | ||||||
Chimera Investment Corp.(a) |
47,478 | 741,132 | ||||||
Dynex Capital, Inc.(a) |
5,983 | 104,702 | ||||||
Ellington Financial, Inc.(a) |
13,703 | 249,121 | ||||||
Franklin BSP Realty Trust, Inc.* (a) |
10,217 | 167,658 | ||||||
Granite Point Mortgage Trust, Inc.(a) |
16,019 | 214,655 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a) |
2,316 | 139,886 | ||||||
Invesco Mortgage Capital, Inc.(a) |
26,055 | 81,813 | ||||||
KKR Real Estate Finance Trust, Inc.(a) |
11,580 | 251,402 | ||||||
Ladder Capital Corp.(a) |
13,703 | 164,436 | ||||||
MFA Financial, Inc. |
65,813 | 296,817 | ||||||
New Residential Investment Corp. |
115,607 | 1,313,295 | ||||||
New York Mortgage Trust, Inc.(a) |
61,567 | 270,279 | ||||||
Orchid Island Capital, Inc.(a) |
55,777 | 276,654 | ||||||
PennyMac Mortgage Investment Trust(a) |
16,598 | 334,450 | ||||||
Ready Capital Corp.(a) |
14,282 | 220,942 | ||||||
Redwood Trust, Inc. |
33,775 | 457,989 | ||||||
Starwood Property Trust, Inc.(a) |
14,861 | 378,510 | ||||||
TPG RE Finance Trust, Inc. |
19,300 | 252,251 | ||||||
Two Harbors Investment Corp. |
54,426 | 349,415 | ||||||
10,092,227 | ||||||||
Multiline Retail – 0.6% | ||||||||
Big Lots, Inc.(a) |
9,457 | 418,472 |
Investments | Shares | Value | ||||||
Multiline Retail – (continued) | ||||||||
Dillard’s, Inc., Class A(a) |
965 | $ | 223,050 | |||||
Dollar General Corp.(a) |
6,562 | 1,453,614 | ||||||
Dollar Tree, Inc.* (a) |
6,369 | 686,324 | ||||||
Franchise Group, Inc.(a) |
7,913 | 291,198 | ||||||
Kohl’s Corp.(a) |
7,720 | 374,652 | ||||||
Macy’s, Inc.(a) |
73,147 | 1,936,201 | ||||||
Nordstrom, Inc.* |
9,457 | 271,700 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.* (a) |
1,544 | 104,467 | ||||||
Target Corp. |
16,598 | 4,309,173 | ||||||
10,068,851 | ||||||||
Multi-Utilities – 0.8% | ||||||||
Ameren Corp. |
6,562 | 553,111 | ||||||
Avista Corp. |
13,317 | 530,150 | ||||||
Black Hills Corp.(a) |
16,984 | 1,127,398 | ||||||
CenterPoint Energy, Inc. |
19,686 | 512,623 | ||||||
CMS Energy Corp. |
8,299 | 500,845 | ||||||
Consolidated Edison, Inc. |
11,001 | 829,475 | ||||||
Dominion Energy, Inc. |
28,564 | 2,168,865 | ||||||
DTE Energy Co. |
6,755 | 765,679 | ||||||
MDU Resources Group, Inc. |
48,443 | 1,488,653 | ||||||
NiSource, Inc. |
18,721 | 461,847 | ||||||
NorthWestern Corp. |
12,738 | 724,283 | ||||||
Public Service Enterprise Group, Inc.(a) |
18,721 | 1,194,400 | ||||||
Sempra Energy |
9,843 | 1,256,262 | ||||||
Unitil Corp. |
3,088 | 128,924 | ||||||
WEC Energy Group, Inc. |
8,878 | 799,553 | ||||||
13,042,068 | ||||||||
Oil, Gas & Consumable Fuels – 3.4% | ||||||||
Alto Ingredients, Inc.* |
21,230 | 112,944 | ||||||
Altus Midstream Co.(a) |
1,351 | 83,519 | ||||||
Antero Midstream Corp.(a) |
73,919 | 786,498 | ||||||
Antero Resources Corp.* |
70,252 | 1,395,907 | ||||||
APA Corp. |
18,721 | 490,677 | ||||||
Arch Resources, Inc.* (a) |
5,018 | 457,039 | ||||||
Berry Corp.(a) |
27,792 | 267,081 | ||||||
Bonanza Creek Energy, Inc.(a) |
7,913 | 444,236 | ||||||
Brigham Minerals, Inc., Class A |
9,264 | 214,739 |
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) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
California Resources Corp.* |
4,246 | $ | 195,868 | |||||
Callon Petroleum Co.* (a) |
5,597 | 289,533 | ||||||
Centennial Resource Development, Inc., Class A* |
12,931 | 93,103 | ||||||
Centrus Energy Corp., Class A* (a) |
2,316 | 131,248 | ||||||
Cheniere Energy, Inc.* (a) |
8,492 | 878,073 | ||||||
Chesapeake Energy Corp. |
24,511 | 1,562,331 | ||||||
Chevron Corp. |
64,269 | 7,358,158 | ||||||
Clean Energy Fuels Corp.* (a) |
17,756 | 163,710 | ||||||
CNX Resources Corp.* |
54,426 | 795,164 | ||||||
Comstock Resources, Inc.* (a) |
23,739 | 234,304 | ||||||
ConocoPhillips |
43,232 | 3,220,352 | ||||||
Contango Oil & Gas Co.* (a) |
19,686 | 81,303 | ||||||
Continental Resources, Inc.(a) |
5,018 | 244,929 | ||||||
Coterra Energy, Inc. |
27,600 | 588,431 | ||||||
CVR Energy, Inc. |
14,282 | 273,786 | ||||||
Delek US Holdings, Inc.* |
10,037 | 195,213 | ||||||
Denbury, Inc.* (a) |
772 | 65,357 | ||||||
Devon Energy Corp. |
25,862 | 1,036,549 | ||||||
Diamondback Energy, Inc. |
7,527 | 806,819 | ||||||
Dorian LPG Ltd.(a) |
8,299 | 100,584 | ||||||
Earthstone Energy, Inc., Class A* |
6,176 | 62,686 | ||||||
EOG Resources, Inc. |
17,949 | 1,659,565 | ||||||
EQT Corp.* (a) |
20,458 | 407,319 | ||||||
Equitrans Midstream Corp. |
82,797 | 853,637 | ||||||
Extraction Oil & Gas, Inc.* (a) |
1,158 | 77,158 | ||||||
Exxon Mobil Corp. |
141,469 | 9,120,506 | ||||||
Gevo, Inc.* (a) |
14,668 | 106,050 | ||||||
Green Plains, Inc.* (a) |
6,176 | 234,379 | ||||||
Hess Corp. |
9,457 | 780,864 | ||||||
HollyFrontier Corp. |
11,387 | 384,881 | ||||||
International Seaways, Inc.(a) |
3,088 | 54,194 | ||||||
Kinder Morgan, Inc. |
57,900 | 969,825 | ||||||
Kosmos Energy Ltd.* (a) |
67,164 | 241,790 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Laredo Petroleum, Inc.* (a) |
3,667 | $ | 276,492 | |||||
Magnolia Oil & Gas Corp., Class A(a) |
14,861 | 310,298 | ||||||
Marathon Oil Corp. |
31,266 | 510,261 | ||||||
Marathon Petroleum Corp. |
23,932 | 1,577,837 | ||||||
Matador Resources Co. |
21,809 | 912,707 | ||||||
Murphy Oil Corp.(a) |
28,371 | 789,565 | ||||||
Northern Oil and Gas, Inc. |
5,404 | 125,157 | ||||||
Oasis Petroleum, Inc. |
3,088 | 372,413 | ||||||
Occidental Petroleum Corp. |
19,300 | 647,129 | ||||||
ONEOK, Inc. |
12,738 | 810,392 | ||||||
Ovintiv, Inc. |
63,304 | 2,375,166 | ||||||
Par Pacific Holdings, Inc.* (a) |
10,229 | 158,140 | ||||||
PBF Energy, Inc., Class A* |
9,650 | 140,986 | ||||||
PDC Energy, Inc.(a) |
25,669 | 1,342,745 | ||||||
Peabody Energy Corp.* (a) |
26,055 | 309,794 | ||||||
Phillips 66 |
10,036 | 750,492 | ||||||
Pioneer Natural Resources Co. |
7,141 | 1,335,224 | ||||||
Range Resources Corp.* |
63,690 | 1,485,251 | ||||||
Ranger Oil Corp.* |
5,404 | 178,548 | ||||||
Renewable Energy Group, Inc.* (a) |
9,264 | 592,896 | ||||||
REX American Resources Corp.* |
193 | 16,974 | ||||||
SM Energy Co. |
6,755 | 231,832 | ||||||
Southwestern Energy Co.* (a) |
168,296 | 821,284 | ||||||
Targa Resources Corp. |
9,071 | 495,912 | ||||||
Tellurian, Inc.* (a) |
193 | 757 | ||||||
Texas Pacific Land Corp.(a) |
193 | 245,818 | ||||||
Valero Energy Corp. |
13,317 | 1,029,804 | ||||||
Vine Energy, Inc., Class A* |
6,755 | 115,308 | ||||||
W&T Offshore, Inc.* |
48,057 | 197,514 | ||||||
Whiting Petroleum Corp.* |
8,878 | 578,224 | ||||||
Williams Cos., Inc. (The) |
46,706 | 1,311,972 | ||||||
World Fuel Services Corp.(a) |
11,001 | 335,860 | ||||||
57,903,061 | ||||||||
Paper & Forest Products – 0.2% | ||||||||
Clearwater Paper Corp.* (a) |
2,509 | 104,951 | ||||||
Domtar Corp.* |
12,159 | 663,760 | ||||||
Glatfelter Corp.(a) |
17,370 | 285,389 | ||||||
Louisiana-Pacific Corp.(a) |
22,581 | 1,330,698 |
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) | ||||||||
Paper & Forest Products – (continued) | ||||||||
Mercer International, Inc.(a) |
11,966 | $ | 128,874 | |||||
Neenah, Inc. |
579 | 29,263 | ||||||
Schweitzer-Mauduit International, Inc.(a) |
9,457 | 329,482 | ||||||
Verso Corp., Class A |
8,106 | 178,981 | ||||||
3,051,398 | ||||||||
Personal Products – 0.3% | ||||||||
BellRing Brands, Inc., Class A* (a) |
3,667 | 98,349 | ||||||
Coty, Inc., Class A* |
22,581 | 191,487 | ||||||
Edgewell Personal Care Co. |
13,896 | 486,221 | ||||||
elf Beauty, Inc.* (a) |
965 | 31,179 | ||||||
Estee Lauder Cos., Inc. (The), Class A |
6,755 | 2,190,849 | ||||||
Herbalife Nutrition Ltd.* (a) |
23,546 | 1,092,534 | ||||||
Inter Parfums, Inc.(a) |
579 | 53,488 | ||||||
Medifast, Inc. |
386 | 75,760 | ||||||
Nu Skin Enterprises, Inc., Class A(a) |
12,931 | 519,180 | ||||||
Revlon, Inc., Class A* (a) |
5,790 | 59,984 | ||||||
USANA Health Sciences, Inc.* (a) |
386 | 37,465 | ||||||
Veru, Inc.* |
4,632 | 37,844 | ||||||
4,874,340 | ||||||||
Pharmaceuticals – 2.9% | ||||||||
Aerie Pharmaceuticals, Inc.* (a) |
1,351 | 14,361 | ||||||
Agile Therapeutics, Inc.* (a) |
101,904 | 80,851 | ||||||
Amneal Pharmaceuticals, Inc.* (a) |
31,459 | 172,710 | ||||||
Amphastar Pharmaceuticals, Inc.* (a) |
1,351 | 25,237 | ||||||
Antares Pharma, Inc.* (a) |
965 | 3,609 | ||||||
Arvinas, Inc.* (a) |
2,509 | 217,229 | ||||||
BioDelivery Sciences International, Inc.* (a) |
46,320 | 188,986 | ||||||
Bristol-Myers Squibb Co. |
73,340 | 4,283,056 | ||||||
Cara Therapeutics, Inc.* (a) |
12,352 | 207,884 | ||||||
Catalent, Inc.* |
4,053 | 558,746 | ||||||
Collegium Pharmaceutical, Inc.* (a) |
10,422 | 204,584 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Corcept Therapeutics, Inc.* |
3,281 | $ | 59,058 | |||||
Durect Corp.* (a) |
114,256 | 146,248 | ||||||
Elanco Animal Health, Inc.* (a) |
14,668 | 482,284 | ||||||
Eli Lilly and Co. |
22,388 | 5,703,567 | ||||||
Endo International plc* |
7,141 | 30,349 | ||||||
EyePoint Pharmaceuticals, Inc.* (a) |
6,176 | 70,839 | ||||||
Fulcrum Therapeutics, Inc.* (a) |
2,509 | 55,549 | ||||||
Innoviva, Inc.* (a) |
10,036 | 175,128 | ||||||
Intra-Cellular Therapies, Inc.* (a) |
1,737 | 74,812 | ||||||
Jaguar Health, Inc.* (a) |
32,038 | 68,241 | ||||||
Jazz Pharmaceuticals plc* (a) |
3,088 | 410,827 | ||||||
Johnson & Johnson |
89,938 | 14,649,101 | ||||||
Kala Pharmaceuticals, Inc.* (a) |
37,056 | 64,477 | ||||||
Lannett Co., Inc.* (a) |
22,002 | 60,065 | ||||||
Merck & Co., Inc. |
84,148 | 7,409,231 | ||||||
Nektar Therapeutics* (a) |
3,088 | 46,814 | ||||||
Omeros Corp.* (a) |
7,527 | 47,194 | ||||||
Pacira BioSciences, Inc.* |
4,632 | 242,161 | ||||||
Perrigo Co. plc |
28,950 | 1,307,092 | ||||||
Pfizer, Inc. |
193,386 | 8,458,704 | ||||||
Prestige Consumer Healthcare, Inc.* (a) |
13,317 | 798,887 | ||||||
Provention Bio, Inc.* (a) |
15,826 | 99,071 | ||||||
Reata Pharmaceuticals, Inc., Class A* (a) |
772 | 74,120 | ||||||
Relmada Therapeutics, Inc.* |
7,527 | 176,659 | ||||||
Revance Therapeutics, Inc.* |
1,737 | 23,884 | ||||||
Royalty Pharma plc, Class A(a) |
13,124 | 518,792 | ||||||
Supernus Pharmaceuticals, Inc.* (a) |
6,755 | 201,637 | ||||||
TFF Pharmaceuticals, Inc.* (a) |
10,422 | 80,354 | ||||||
Viatris, Inc. |
31,459 | 419,978 | ||||||
VYNE Therapeutics, Inc.* (a) |
64,076 | 85,862 | ||||||
Zoetis, Inc. |
13,317 | 2,879,135 | ||||||
Zynerba Pharmaceuticals, Inc.* (a) |
16,019 | 61,353 | ||||||
50,938,726 |
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) | ||||||||
Professional Services – 0.8% | ||||||||
ASGN, Inc.* |
12,738 | $ | 1,524,229 | |||||
Booz Allen Hamilton Holding Corp. |
3,667 | 318,516 | ||||||
CACI International, Inc., Class A* |
5,597 | 1,609,921 | ||||||
CBIZ, Inc.* |
1,930 | 70,850 | ||||||
Clarivate plc* (a) |
4,632 | 108,620 | ||||||
CoStar Group, Inc.* |
11,580 | 996,459 | ||||||
CRA International, Inc. |
193 | 21,195 | ||||||
Dun & Bradstreet Holdings, Inc.* (a) |
11,580 | 218,167 | ||||||
Equifax, Inc. |
3,281 | 910,248 | ||||||
Exponent, Inc. |
3,281 | 376,659 | ||||||
Forrester Research, Inc.* |
386 | 20,555 | ||||||
FTI Consulting, Inc.* (a) |
1,158 | 166,659 | ||||||
Heidrick & Struggles International, Inc.(a) |
3,088 | 144,765 | ||||||
Huron Consulting Group, Inc.* |
772 | 38,724 | ||||||
ICF International, Inc. |
579 | 58,184 | ||||||
IHS Markit Ltd. |
10,615 | 1,387,593 | ||||||
Insperity, Inc. |
1,158 | 144,750 | ||||||
Jacobs Engineering Group, Inc. |
4,632 | 650,425 | ||||||
KBR, Inc.(a) |
10,615 | 450,501 | ||||||
Kelly Services, Inc., Class A(a) |
8,878 | 160,070 | ||||||
Kforce, Inc.(a) |
579 | 37,496 | ||||||
Korn Ferry |
4,246 | 327,834 | ||||||
Leidos Holdings, Inc. |
3,474 | 347,331 | ||||||
ManpowerGroup, Inc. |
3,860 | 373,069 | ||||||
ManTech International Corp., Class A |
772 | 66,562 | ||||||
Nielsen Holdings plc(a) |
17,370 | 351,742 | ||||||
Resources Connection, Inc. |
6,562 | 114,244 | ||||||
Robert Half International, Inc. |
4,439 | 501,918 | ||||||
Science Applications International Corp.(a) |
12,352 | 1,108,963 | ||||||
TransUnion |
5,018 | 578,525 | ||||||
TriNet Group, Inc.* |
1,351 | 136,789 | ||||||
TrueBlue, Inc.* (a) |
2,702 | 75,251 | ||||||
Upwork, Inc.* |
6,369 | 300,107 |
Investments | Shares | Value | ||||||
Professional Services – (continued) | ||||||||
Verisk Analytics, Inc. |
4,246 | $ | 892,806 | |||||
14,589,727 | ||||||||
Real Estate Management & Development – 0.3% | ||||||||
CBRE Group, Inc., Class A* |
11,966 | 1,245,421 | ||||||
Cushman & Wakefield plc* (a) |
34,354 | 631,770 | ||||||
eXp World Holdings, Inc.(a) |
1,544 | 79,670 | ||||||
Forestar Group, Inc.* |
1,351 | 26,439 | ||||||
Howard Hughes Corp. (The)* |
8,299 | 723,092 | ||||||
Jones Lang LaSalle, Inc.* (a) |
2,316 | 598,061 | ||||||
Kennedy-Wilson Holdings, Inc.(a) |
2,702 | 60,444 | ||||||
Newmark Group, Inc., Class A(a) |
36,477 | 542,778 | ||||||
Opendoor Technologies, Inc.* (a) |
12,159 | 288,290 | ||||||
RE/MAX Holdings, Inc., Class A |
3,474 | 110,508 | ||||||
Realogy Holdings Corp.* |
31,073 | 538,184 | ||||||
Redfin Corp.* (a) |
2,702 | 138,721 | ||||||
St Joe Co. (The) |
772 | 36,299 | ||||||
5,019,677 | ||||||||
Road & Rail – 1.1% | ||||||||
AMERCO |
193 | 142,239 | ||||||
ArcBest Corp.(a) |
3,281 | 294,798 | ||||||
Avis Budget Group, Inc.* (a) |
11,580 | 2,006,930 | ||||||
CSX Corp. |
57,707 | 2,087,262 | ||||||
Heartland Express, Inc.(a) |
5,790 | 94,551 | ||||||
JB Hunt Transport Services, Inc. |
2,316 | 456,692 | ||||||
Kansas City Southern |
2,702 | 838,295 | ||||||
Knight-Swift Transportation Holdings, Inc. |
4,825 | 273,529 | ||||||
Landstar System, Inc. |
1,544 | 271,451 | ||||||
Lyft, Inc., Class A* (a) |
5,404 | 247,881 | ||||||
Marten Transport Ltd.(a) |
2,895 | 48,144 | ||||||
Norfolk Southern Corp. |
7,334 | 2,149,229 | ||||||
Old Dominion Freight Line, Inc. |
2,702 | 922,328 | ||||||
Ryder System, Inc.(a) |
11,194 | 950,930 | ||||||
Saia, Inc.* |
965 | 301,698 |
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) | ||||||||
Road & Rail – (continued) | ||||||||
Schneider National, Inc., Class B(a) |
3,088 | $ | 77,015 | |||||
Uber Technologies, Inc.* |
41,109 | 1,801,396 | ||||||
Union Pacific Corp. |
17,370 | 4,193,118 | ||||||
Werner Enterprises, Inc. |
16,598 | 752,221 | ||||||
XPO Logistics, Inc.* |
2,895 | 248,391 | ||||||
18,158,098 | ||||||||
Semiconductors & Semiconductor Equipment – 4.4% | ||||||||
Advanced Micro Devices, Inc.* (a) |
34,547 | 4,153,586 | ||||||
Alpha & Omega Semiconductor Ltd.* |
5,790 | 200,623 | ||||||
Ambarella, Inc.* (a) |
1,737 | 322,787 | ||||||
Amkor Technology, Inc. |
21,423 | 469,592 | ||||||
Analog Devices, Inc.(a) |
15,054 | 2,611,718 | ||||||
Applied Materials, Inc. |
26,055 | 3,560,416 | ||||||
Atomera, Inc.* (a) |
2,316 | 50,049 | ||||||
Axcelis Technologies, Inc.* (a) |
1,158 | 63,609 | ||||||
AXT, Inc.* |
7,334 | 59,919 | ||||||
Broadcom, Inc. |
14,282 | 7,593,311 | ||||||
Brooks Automation, Inc.(a) |
2,702 | 314,648 | ||||||
CEVA, Inc.* (a) |
193 | 8,803 | ||||||
Cirrus Logic, Inc.* |
3,088 | 249,541 | ||||||
CMC Materials, Inc. |
965 | 123,877 | ||||||
Cohu, Inc.* (a) |
1,351 | 43,286 | ||||||
Diodes, Inc.* |
1,351 | 129,817 | ||||||
Enphase Energy, Inc.* |
2,895 | 670,569 | ||||||
Entegris, Inc. |
3,667 | 516,240 | ||||||
First Solar, Inc.* |
3,281 | 392,375 | ||||||
FormFactor, Inc.* (a) |
2,509 | 99,808 | ||||||
Ichor Holdings Ltd.* |
2,509 | 109,693 | ||||||
Impinj, Inc.* |
1,544 | 107,648 | ||||||
Intel Corp. |
135,486 | 6,638,814 | ||||||
KLA Corp. |
4,053 | 1,510,796 | ||||||
Kopin Corp.* |
6,755 | 35,396 | ||||||
Kulicke & Soffa Industries, Inc.(a) |
2,123 | 121,011 | ||||||
Lam Research Corp. |
3,667 | 2,066,611 | ||||||
Lattice Semiconductor Corp.* |
9,071 | 629,890 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
MACOM Technology Solutions Holdings, Inc.* |
1,544 | $ | 107,802 | |||||
Magnachip Semiconductor Corp.* |
5,404 | 102,460 | ||||||
Marvell Technology, Inc. |
22,774 | 1,560,019 | ||||||
MaxLinear, Inc.* |
3,667 | 231,021 | ||||||
Meta Materials, Inc.* (a) |
18,335 | 86,174 | ||||||
Microchip Technology, Inc. |
15,826 | 1,172,548 | ||||||
Micron Technology, Inc. |
36,477 | 2,520,561 | ||||||
MKS Instruments, Inc. |
2,316 | 347,516 | ||||||
Monolithic Power Systems, Inc. |
1,158 | 608,483 | ||||||
NeoPhotonics Corp.* (a) |
6,948 | 70,314 | ||||||
NVIDIA Corp. |
69,094 | 17,665,263 | ||||||
NXP Semiconductors NV |
7,334 | 1,473,107 | ||||||
ON Semiconductor Corp.* |
12,931 | 621,593 | ||||||
Onto Innovation, Inc.* (a) |
4,246 | 336,326 | ||||||
PDF Solutions, Inc.* |
579 | 13,624 | ||||||
Photronics, Inc.* (a) |
16,212 | 210,594 | ||||||
Power Integrations, Inc.(a) |
3,281 | 338,632 | ||||||
Qorvo, Inc.* |
3,281 | 551,963 | ||||||
QUALCOMM, Inc. |
30,494 | 4,056,922 | ||||||
Rambus, Inc.* (a) |
3,860 | 89,822 | ||||||
Semtech Corp.* (a) |
3,667 | 311,805 | ||||||
Silicon Laboratories, Inc.* |
2,509 | 473,599 | ||||||
SiTime Corp.* (a) |
579 | 153,371 | ||||||
Skyworks Solutions, Inc. |
4,439 | 741,890 | ||||||
SMART Global Holdings, Inc.* (a) |
4,632 | 247,627 | ||||||
SolarEdge Technologies, Inc.* |
1,544 | 547,626 | ||||||
SunPower Corp.* (a) |
6,562 | 220,877 | ||||||
Synaptics, Inc.* |
1,737 | 337,968 | ||||||
Teradyne, Inc.(a) |
4,632 | 640,328 | ||||||
Texas Instruments, Inc. |
24,897 | 4,667,689 | ||||||
Ultra Clean Holdings, Inc.* |
11,387 | 564,453 | ||||||
Universal Display Corp. |
1,158 | 212,146 | ||||||
Veeco Instruments, Inc.* (a) |
1,737 | 42,192 | ||||||
Wolfspeed, Inc.* (a) |
4,053 | 486,806 | ||||||
Xilinx, Inc. |
6,562 | 1,181,160 | ||||||
75,848,714 |
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) | ||||||||
Software – 8.3% | ||||||||
8x8, Inc.* (a) |
7,913 | $ | 179,309 | |||||
ACI Worldwide, Inc.* |
3,474 | 106,582 | ||||||
Adobe, Inc.* |
13,317 | 8,660,844 | ||||||
Alarm.com Holdings, Inc.* (a) |
3,088 | 260,195 | ||||||
Altair Engineering, Inc., Class A* (a) |
1,158 | 90,081 | ||||||
Alteryx, Inc., Class A* |
1,158 | 84,754 | ||||||
Anaplan, Inc.* |
5,790 | 377,566 | ||||||
ANSYS, Inc.* |
2,316 | 879,107 | ||||||
Appfolio, Inc., Class A* (a) |
1,930 | 254,162 | ||||||
Appian Corp.* (a) |
965 | 95,931 | ||||||
Asana, Inc., Class A* |
3,860 | 524,188 | ||||||
Aspen Technology, Inc.* |
1,737 | 272,171 | ||||||
Autodesk, Inc.* |
6,176 | 1,961,559 | ||||||
Avalara, Inc.* |
3,088 | 554,728 | ||||||
Avaya Holdings Corp.* (a) |
20,651 | 384,522 | ||||||
Benefitfocus, Inc.* (a) |
15,440 | 169,222 | ||||||
Bill.com Holdings, Inc.* (a) |
2,123 | 624,820 | ||||||
Black Knight, Inc.* |
5,404 | 378,874 | ||||||
Blackbaud, Inc.* (a) |
1,544 | 109,639 | ||||||
Blackline, Inc.* (a) |
3,088 | 391,775 | ||||||
Bottomline Technologies DE, Inc.* (a) |
1,351 | 62,551 | ||||||
Box, Inc., Class A* |
5,404 | 139,585 | ||||||
C3.ai, Inc., Class A* (a) |
4,632 | 208,996 | ||||||
Cadence Design Systems, Inc.* |
7,334 | 1,269,589 | ||||||
CDK Global, Inc. |
9,071 | 394,770 | ||||||
Cerence, Inc.* (a) |
1,930 | 202,901 | ||||||
Ceridian HCM Holding, Inc.* |
2,702 | 338,425 | ||||||
ChannelAdvisor Corp.* |
3,860 | 98,469 | ||||||
Citrix Systems, Inc. |
3,667 | 347,375 | ||||||
CommVault Systems, Inc.* |
1,351 | 83,086 | ||||||
Coupa Software, Inc.* |
1,737 | 395,515 | ||||||
Crowdstrike Holdings, Inc., Class A* (a) |
5,983 | 1,686,009 | ||||||
Datadog, Inc., Class A* |
7,334 | 1,225,145 | ||||||
Digital Turbine, Inc.* |
3,474 | 298,972 | ||||||
DocuSign, Inc.* |
4,825 | 1,342,749 | ||||||
Dolby Laboratories, Inc., Class A |
3,088 | 272,825 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
Domo, Inc., Class B* |
2,316 | $ | 204,619 | |||||
Dropbox, Inc., Class A* |
12,159 | 370,728 | ||||||
Duck Creek Technologies, Inc.* |
4,246 | 133,749 | ||||||
Dynatrace, Inc.* |
6,369 | 477,675 | ||||||
Ebix, Inc.(a) |
6,369 | 208,967 | ||||||
Elastic NV* |
2,316 | 401,849 | ||||||
Envestnet, Inc.* |
4,246 | 354,541 | ||||||
Everbridge, Inc.* (a) |
1,158 | 184,481 | ||||||
Fair Isaac Corp.* |
772 | 307,410 | ||||||
Five9, Inc.* |
1,930 | 304,959 | ||||||
Fortinet, Inc.* |
3,667 | 1,233,359 | ||||||
Guidewire Software, Inc.* (a) |
3,281 | 412,520 | ||||||
HubSpot, Inc.* |
1,158 | 938,246 | ||||||
InterDigital, Inc.(a) |
965 | 64,607 | ||||||
Intuit, Inc. |
7,334 | 4,591,011 | ||||||
Jamf Holding Corp.* (a) |
4,439 | 211,518 | ||||||
KnowBe4, Inc., Class A* |
2,509 | 58,660 | ||||||
LivePerson, Inc.* (a) |
3,860 | 198,829 | ||||||
Mandiant Corp.* |
5,018 | 87,514 | ||||||
Manhattan Associates, Inc.* |
2,509 | 455,484 | ||||||
Marathon Digital Holdings, Inc.* (a) |
7,141 | 373,046 | ||||||
Microsoft Corp. |
206,896 | 68,610,851 | ||||||
MicroStrategy, Inc., Class A* (a) |
193 | 138,007 | ||||||
Mimecast Ltd.* |
3,088 | 232,959 | ||||||
Model N, Inc.* (a) |
4,632 | 150,123 | ||||||
Momentive Global, Inc.* |
12,545 | 287,531 | ||||||
nCino, Inc.* (a) |
2,123 | 154,257 | ||||||
NCR Corp.* (a) |
31,459 | 1,243,889 | ||||||
New Relic, Inc.* |
3,667 | 297,614 | ||||||
NortonLifeLock, Inc.(a) |
13,703 | 348,741 | ||||||
Nuance Communications, Inc.* (a) |
8,878 | 488,734 | ||||||
Nutanix, Inc., Class A* |
13,703 | 470,150 | ||||||
ON24, Inc.* (a) |
3,088 | 59,073 | ||||||
OneSpan, Inc.* (a) |
4,439 | 90,644 | ||||||
Oracle Corp. |
46,706 | 4,480,974 | ||||||
PagerDuty, Inc.* |
772 | 32,231 | ||||||
Palantir Technologies, Inc., Class A* (a) |
42,846 | 1,108,854 | ||||||
Palo Alto Networks, Inc.* (a) |
2,895 | 1,473,816 |
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) | ||||||||
Software – (continued) | ||||||||
Paycom Software, Inc.* |
1,351 | $ | 740,145 | |||||
Paylocity Holding Corp.* |
1,158 | 353,352 | ||||||
Pegasystems, Inc. |
965 | 114,565 | ||||||
Ping Identity Holding Corp.* (a) |
4,246 | 120,289 | ||||||
Progress Software Corp. |
1,544 | 79,377 | ||||||
PROS Holdings, Inc.* |
1,351 | 40,530 | ||||||
PTC, Inc.* |
3,281 | 417,835 | ||||||
Q2 Holdings, Inc.* |
1,351 | 105,999 | ||||||
QAD, Inc., Class A |
2,123 | 186,060 | ||||||
Qualtrics International, Inc., Class A* |
4,439 | 205,614 | ||||||
Qualys, Inc.* (a) |
1,544 | 192,197 | ||||||
Rapid7, Inc.* (a) |
4,053 | 521,824 | ||||||
RingCentral, Inc., Class A* |
1,737 | 423,446 | ||||||
Sailpoint Technologies Holdings, Inc.* (a) |
2,895 | 138,902 | ||||||
salesforce.com, Inc.* |
27,213 | 8,155,464 | ||||||
ServiceNow, Inc.* |
5,404 | 3,770,695 | ||||||
Smartsheet, Inc., Class A* |
4,825 | 332,973 | ||||||
Smith Micro Software, Inc.* (a) |
16,405 | 93,508 | ||||||
Splunk, Inc.* (a) |
5,018 | 827,067 | ||||||
Sprout Social, Inc., Class A* |
2,509 | 320,349 | ||||||
SPS Commerce, Inc.* (a) |
2,316 | 353,723 | ||||||
SS&C Technologies Holdings, Inc. |
5,790 | 460,131 | ||||||
Synchronoss Technologies, Inc.* (a) |
19,686 | 51,971 | ||||||
Synopsys, Inc.* |
4,053 | 1,350,379 | ||||||
Telos Corp.* (a) |
3,281 | 85,011 | ||||||
Tenable Holdings, Inc.* |
5,404 | 287,763 | ||||||
Teradata Corp.* (a) |
5,211 | 294,734 | ||||||
Trade Desk, Inc. (The), Class A* |
11,580 | 867,458 | ||||||
Tyler Technologies, Inc.* |
1,351 | 733,890 | ||||||
Upland Software, Inc.* (a) |
772 | 25,762 | ||||||
Varonis Systems, Inc.* (a) |
5,790 | 374,845 | ||||||
Verint Systems, Inc.* |
2,123 | 98,932 | ||||||
Viant Technology, Inc., Class A* |
5,404 | 63,497 | ||||||
VirnetX Holding Corp.* (a) |
15,633 | 60,187 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
VMware, Inc., Class A* (a) |
3,088 | $ | 468,450 | |||||
Vonage Holdings Corp.* (a) |
7,527 | 121,335 | ||||||
Workday, Inc., Class A* |
5,018 | 1,455,120 | ||||||
Workiva, Inc.* (a) |
1,351 | 202,042 | ||||||
Xperi Holding Corp.(a) |
27,599 | 494,574 | ||||||
Yext, Inc.* (a) |
16,212 | 204,109 | ||||||
Zendesk, Inc.* |
4,246 | 432,243 | ||||||
Zix Corp.* |
13,896 | 117,699 | ||||||
Zoom Video Communications, Inc., Class A* |
5,404 | 1,484,209 | ||||||
Zscaler, Inc.* |
1,737 | 553,860 | ||||||
Zuora, Inc., Class A* (a) |
13,510 | 295,329 | ||||||
144,046,655 | ||||||||
Specialty Retail – 2.7% | ||||||||
Aaron’s Co., Inc. (The)(a) |
2,702 | 63,200 | ||||||
Abercrombie & Fitch Co., Class A* (a) |
11,001 | 434,980 | ||||||
Academy Sports & Outdoors, Inc.* (a) |
20,651 | 883,450 | ||||||
Advance Auto Parts, Inc. |
1,930 | 435,254 | ||||||
American Eagle Outfitters, Inc.(a) |
11,580 | 274,909 | ||||||
America’s Car-Mart, Inc.* |
1,158 | 138,369 | ||||||
Asbury Automotive Group, Inc.* (a) |
4,825 | 944,301 | ||||||
AutoNation, Inc.* |
2,702 | 327,266 | ||||||
AutoZone, Inc.* |
772 | 1,377,896 | ||||||
Barnes & Noble Education, Inc.* |
5,597 | 58,097 | ||||||
Bath & Body Works, Inc. |
8,492 | 586,712 | ||||||
Bed Bath & Beyond, Inc.* (a) |
30,108 | 422,716 | ||||||
Best Buy Co., Inc. |
8,106 | 990,877 | ||||||
Big 5 Sporting Goods Corp.(a) |
3,474 | 84,001 | ||||||
Boot Barn Holdings, Inc.* |
1,544 | 161,333 | ||||||
Buckle, Inc. (The) |
7,141 | 297,208 | ||||||
Burlington Stores, Inc.* |
1,737 | 479,916 | ||||||
Caleres, Inc.(a) |
3,281 | 75,660 | ||||||
Camping World Holdings, Inc., Class A(a) |
10,229 | 381,030 | ||||||
CarMax, Inc.* |
5,404 | 739,916 | ||||||
Carvana Co.* (a) |
2,509 | 760,679 |
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) | ||||||||
Specialty Retail – (continued) | ||||||||
Chico’s FAS, Inc.* (a) |
579 | $ | 3,161 | |||||
Children’s Place, Inc. (The)* (a) |
2,123 | 175,975 | ||||||
Citi Trends, Inc.* |
965 | 74,652 | ||||||
Container Store Group, Inc. (The)* (a) |
7,913 | 87,518 | ||||||
Designer Brands, Inc., Class A* (a) |
4,825 | 65,282 | ||||||
Dick’s Sporting Goods, Inc.(a) |
16,212 | 2,013,692 | ||||||
Five Below, Inc.* |
1,737 | 342,710 | ||||||
Floor & Decor Holdings, Inc., Class A* |
2,123 | 288,558 | ||||||
Foot Locker, Inc. |
24,125 | 1,150,039 | ||||||
GameStop Corp., Class A* (a) |
2,123 | 389,592 | ||||||
Gap, Inc. (The) |
9,457 | 214,579 | ||||||
Genesco, Inc.* (a) |
1,930 | 116,939 | ||||||
Group 1 Automotive, Inc.(a) |
4,439 | 798,132 | ||||||
Guess?, Inc.(a) |
5,404 | 111,917 | ||||||
Hibbett, Inc.(a) |
3,474 | 269,027 | ||||||
Home Depot, Inc. (The) |
29,529 | 10,977,110 | ||||||
Leslie’s, Inc.* (a) |
7,334 | 151,667 | ||||||
Lithia Motors, Inc., Class A |
1,351 | 431,266 | ||||||
Lowe’s Cos., Inc. |
23,546 | 5,505,526 | ||||||
Lumber Liquidators Holdings, Inc.* (a) |
193 | 3,489 | ||||||
MarineMax, Inc.* (a) |
6,176 | 319,855 | ||||||
Monro, Inc.(a) |
2,895 | 178,795 | ||||||
Murphy USA, Inc. |
5,597 | 912,031 | ||||||
National Vision Holdings, Inc.* |
2,509 | 154,655 | ||||||
ODP Corp. (The)* |
14,282 | 618,411 | ||||||
O’Reilly Automotive, Inc.* |
1,930 | 1,201,078 | ||||||
Party City Holdco, Inc.* |
7,527 | 54,721 | ||||||
Penske Automotive Group, Inc. |
8,299 | 880,109 | ||||||
Rent-A-Center, Inc.(a) |
12,931 | 688,705 | ||||||
RH* (a) |
579 | 381,926 | ||||||
Ross Stores, Inc. |
8,685 | 983,142 | ||||||
Sally Beauty Holdings, Inc.* |
19,493 | 297,463 | ||||||
Shift Technologies, Inc.* (a) |
12,545 | 85,682 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
Shoe Carnival, Inc.(a) |
3,088 | $ | 104,591 | |||||
Signet Jewelers Ltd.(a) |
11,773 | 1,049,916 | ||||||
Sleep Number Corp.* (a) |
4,246 | 375,092 | ||||||
Sonic Automotive, Inc., Class A(a) |
6,755 | 333,900 | ||||||
Sportsman’s Warehouse Holdings, Inc.* |
11,773 | 203,202 | ||||||
TJX Cos., Inc. (The) |
32,810 | 2,148,727 | ||||||
Tractor Supply Co. |
3,088 | 670,621 | ||||||
Ulta Beauty, Inc.* |
1,351 | 496,303 | ||||||
Urban Outfitters, Inc.* |
6,948 | 221,850 | ||||||
Vroom, Inc.* (a) |
1,351 | 25,845 | ||||||
Williams-Sonoma, Inc.(a) |
2,509 | 465,997 | ||||||
Zumiez, Inc.* (a) |
5,983 | 243,508 | ||||||
46,184,726 | ||||||||
Technology Hardware, Storage & Peripherals – 4.1% | ||||||||
3D Systems Corp.* (a) |
2,123 | 59,784 | ||||||
Apple, Inc. |
432,320 | 64,761,536 | ||||||
Dell Technologies, Inc., Class C* |
9,071 | 997,719 | ||||||
Diebold Nixdorf, Inc.* |
22,774 | 204,966 | ||||||
Eastman Kodak Co.* (a) |
9,650 | 65,524 | ||||||
Hewlett Packard Enterprise Co. |
47,092 | 689,898 | ||||||
HP, Inc. |
43,232 | 1,311,227 | ||||||
NetApp, Inc. |
7,141 | 637,691 | ||||||
Pure Storage, Inc., Class A* |
14,861 | 399,166 | ||||||
Quantum Corp.* (a) |
26,248 | 149,876 | ||||||
Seagate Technology Holdings plc |
7,913 | 704,811 | ||||||
Super Micro Computer, Inc.* (a) |
11,387 | 402,986 | ||||||
Western Digital Corp.* |
11,001 | 575,242 | ||||||
Xerox Holdings Corp. |
39,179 | 697,386 | ||||||
71,657,812 | ||||||||
Textiles, Apparel & Luxury Goods – 0.8% | ||||||||
Capri Holdings Ltd.* |
4,632 | 246,608 | ||||||
Carter’s, Inc. |
1,544 | 152,115 | ||||||
Columbia Sportswear Co. |
772 | 80,165 | ||||||
Crocs, Inc.* (a) |
2,509 | 405,078 | ||||||
Deckers Outdoor Corp.* |
965 | 381,474 |
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) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Fossil Group, Inc.* (a) |
4,053 | $ | 47,906 | |||||
G-III Apparel Group Ltd.* (a) |
5,790 | 165,941 | ||||||
Hanesbrands, Inc. |
84,534 | 1,440,459 | ||||||
Kontoor Brands, Inc.(a) |
3,860 | 204,580 | ||||||
Levi Strauss & Co., Class A(a) |
772 | 20,211 | ||||||
Lululemon Athletica, Inc.* |
3,281 | 1,528,979 | ||||||
NIKE, Inc., Class B |
34,740 | 5,811,655 | ||||||
Oxford Industries, Inc. |
1,158 | 107,370 | ||||||
PVH Corp.* |
3,667 | 400,913 | ||||||
Ralph Lauren Corp.(a) |
1,544 | 196,350 | ||||||
Skechers USA, Inc., Class A* |
5,018 | 231,882 | ||||||
Steven Madden Ltd. |
5,211 | 235,016 | ||||||
Tapestry, Inc. |
12,545 | 489,004 | ||||||
Under Armour, Inc., Class A* (a) |
5,404 | 118,672 | ||||||
Under Armour, Inc., Class C* |
10,808 | 204,055 | ||||||
VF Corp. |
8,106 | 590,765 | ||||||
Wolverine World Wide, Inc. |
6,176 | 204,858 | ||||||
13,264,056 | ||||||||
Thrifts & Mortgage Finance – 0.7% | ||||||||
Axos Financial, Inc.* (a) |
12,545 | 664,885 | ||||||
Essent Group Ltd. |
27,406 | 1,315,488 | ||||||
Federal Agricultural Mortgage Corp., Class C |
2,509 | 316,360 | ||||||
Flagstar Bancorp, Inc. |
11,580 | 546,460 | ||||||
HomeStreet, Inc. |
1,351 | 63,713 | ||||||
Merchants Bancorp |
386 | 17,150 | ||||||
Meridian Bancorp, Inc.(a) |
5,018 | 116,418 | ||||||
Meta Financial Group, Inc. |
4,053 | 224,698 | ||||||
MGIC Investment Corp. |
86,271 | 1,394,139 | ||||||
Mr Cooper Group, Inc.* |
18,721 | 820,729 | ||||||
New York Community Bancorp, Inc.(a) |
107,501 | 1,336,237 | ||||||
NMI Holdings, Inc., Class A* (a) |
22,002 | 534,209 | ||||||
Northfield Bancorp, Inc.(a) |
18,721 | 328,553 | ||||||
Northwest Bancshares, Inc.(a) |
19,879 | 274,330 | ||||||
Ocwen Financial Corp.* |
2,316 | 72,746 | ||||||
PennyMac Financial Services, Inc.(a) |
10,036 | 622,834 |
Investments | Shares | Value | ||||||
Thrifts & Mortgage Finance – (continued) | ||||||||
Premier Financial Corp. |
11,387 | $ | 363,018 | |||||
Provident Financial Services, Inc.(a) |
14,475 | 358,401 | ||||||
Radian Group, Inc. |
47,092 | 1,124,086 | ||||||
Rocket Cos., Inc., Class A(a) |
24,704 | 407,122 | ||||||
TFS Financial Corp.(a) |
1,930 | 37,558 | ||||||
TrustCo Bank Corp.(a) |
772 | 25,908 | ||||||
Walker & Dunlop, Inc.(a) |
7,334 | 953,933 | ||||||
Washington Federal, Inc.(a) |
18,721 | 661,975 | ||||||
Waterstone Financial, Inc. |
8,492 | 175,530 | ||||||
WSFS Financial Corp. |
4,053 | 209,986 | ||||||
12,966,466 | ||||||||
Tobacco – 0.5% | ||||||||
Altria Group, Inc. |
60,023 | 2,647,615 | ||||||
Philip Morris International, Inc. |
52,689 | 4,981,218 | ||||||
Turning Point Brands, Inc.(a) |
193 | 7,367 | ||||||
Universal Corp.(a) |
7,720 | 362,840 | ||||||
Vector Group Ltd.(a) |
20,844 | 276,391 | ||||||
8,275,431 | ||||||||
Trading Companies & Distributors – 0.7% | ||||||||
Air Lease Corp.(a) |
22,774 | 912,099 | ||||||
Applied Industrial Technologies, Inc.(a) |
2,702 | 263,391 | ||||||
Beacon Roofing Supply, Inc.* (a) |
14,089 | 744,885 | ||||||
BlueLinx Holdings, Inc.* |
2,123 | 101,119 | ||||||
Boise Cascade Co.(a) |
8,878 | 502,672 | ||||||
CAI International, Inc. |
1,737 | 97,150 | ||||||
DXP Enterprises, Inc.* |
5,597 | 184,477 | ||||||
Fastenal Co.(a) |
15,247 | 870,299 | ||||||
GATX Corp.(a) |
3,281 | 311,203 | ||||||
Global Industrial Co.(a) |
579 | 23,496 | ||||||
GMS, Inc.* |
11,580 | 573,557 | ||||||
H&E Equipment Services, Inc.(a) |
5,404 | 243,612 | ||||||
Herc Holdings, Inc.(a) |
2,316 | 421,605 | ||||||
McGrath RentCorp |
3,088 | 222,768 | ||||||
MRC Global, Inc.* |
6,562 | 54,465 | ||||||
MSC Industrial Direct Co., Inc., Class A(a) |
11,194 | 941,080 | ||||||
NOW, Inc.* |
8,299 | 59,919 |
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) | ||||||||
Trading Companies & Distributors – (continued) | ||||||||
Rush Enterprises, Inc., Class A(a) |
7,720 | $ | 402,058 | |||||
SiteOne Landscape Supply, Inc.* |
1,930 | 453,473 | ||||||
Triton International Ltd. |
16,791 | 1,044,232 | ||||||
United Rentals, Inc.* |
2,509 | 951,187 | ||||||
Univar Solutions, Inc.* (a) |
34,933 | 893,586 | ||||||
Veritiv Corp.* (a) |
3,474 | 372,656 | ||||||
Watsco, Inc. |
772 | 223,556 | ||||||
WESCO International, Inc.* |
10,808 | 1,400,284 | ||||||
WW Grainger, Inc. |
1,158 | 536,281 | ||||||
12,805,110 | ||||||||
Transportation Infrastructure – 0.0%(e) | ||||||||
Macquarie Infrastructure Holdings LLC |
3,667 | 13,531 | ||||||
Water Utilities – 0.1% | ||||||||
American States Water Co.(a) |
3,474 | 315,578 | ||||||
American Water Works Co., Inc. |
4,632 | 806,802 | ||||||
California Water Service Group |
1,544 | 93,999 | ||||||
Essential Utilities, Inc. |
8,106 | 381,549 | ||||||
Middlesex Water Co.(a) |
579 | 63,759 | ||||||
SJW Group(a) |
3,281 | 216,284 | ||||||
1,877,971 | ||||||||
Wireless Telecommunication Services – 0.1% | ||||||||
Gogo, Inc.* (a) |
13,703 | 222,811 | ||||||
Shenandoah Telecommunications Co.(a) |
1,351 | 37,342 | ||||||
Telephone and Data Systems, Inc.(a) |
26,248 | 491,887 | ||||||
T-Mobile US, Inc.* |
15,054 | 1,731,662 | ||||||
United States Cellular Corp.* (a) |
2,123 | 64,900 | ||||||
2,548,602 | ||||||||
Total
Common Stocks (Cost $932,319,222) |
|
1,714,660,136 |
Investments | Number of Warrants |
Value | ||||||
WARRANTS – 0.0%(e) | ||||||||
Oil, Gas & Consumable Fuels – 0.0%(e) | ||||||||
Occidental
Petroleum Corp., expiring 8/3/2027, price 22.00 USD* |
4,266 | $ | 64,161 | |||||
Number of Rights |
||||||||
RIGHTS – 0.0%(e) | ||||||||
Biotechnology – 0.0%(e) | ||||||||
Achillion Pharmaceuticals, Inc., CVR* ‡ (d) |
44,344 | 25,720 | ||||||
Media – 0.0% | ||||||||
Media General, Inc., CVR* ‡ (d) |
22,261 | — | ||||||
Total
Rights (Cost $—) |
|
25,720 | ||||||
Principal Amount |
||||||||
SECURITIES LENDING REINVESTMENTS(f) – 9.0% | ||||||||
CERTIFICATES OF DEPOSIT – 0.4% | ||||||||
Oversea-Chinese
Banking Corp. Ltd., New York |
$ | 4,000,000 | 3,999,988 | |||||
The
Sumitomo Bank Ltd., New York |
4,000,000 | 4,000,056 | ||||||
Total
Certificates of Deposit (Cost $8,000,000) |
|
8,000,044 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 175 |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Principal Amount |
Value | ||||||
SECURITIES LENDING REINVESTMENTS(f) – (continued) | ||||||||
REPURCHASE AGREEMENTS – 8.6% | ||||||||
BofA Securities, Inc., 0.52%, dated 10/31/2021, due 1/31/2022, repurchase price $6,007,973, collateralized by various U.S. Treasury Securities, ranging from 0.63% – 4.50%, maturing 12/31/2027 – 8/15/2039; Common Stocks; total market value $6,284,612 |
$ | 6,000,000 | $ | 6,000,000 | ||||
Cantor Fitzgerald & Co., Inc., 0.05%, dated 10/31/2021, due 11/1/2021, repurchase price $83,000,115, collateralized by various Mortgage-Backed Securities, ranging from 1.50% – 6.00%, maturing 7/1/2036 – 12/15/2062; total market value $113,898,968 |
83,000,000 | 83,000,000 |
Investments | Principal Amount |
Value | ||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Citigroup Global Markets, Inc., 0.05%, dated 10/31/2021, due 11/1/2021, repurchase price $59,227,199, collateralized by various U.S. Treasury Securities, ranging from 0.75% – 4.63%, maturing 2/15/2040 – 2/15/2042; total market value $59,761,487 |
$ | 59,227,116 | $ | 59,227,116 | ||||
Total
Repurchase Agreements (Cost $148,227,116) |
|
148,227,116 | ||||||
Total
Securities Lending Reinvestments (Cost $156,227,116) |
|
156,227,160 | ||||||
Total
Investments – 108.3% (Cost $1,088,567,455) |
|
1,870,977,177 | ||||||
Liabilities in excess of other assets – (8.3%) |
|
(143,958,159 | ) | |||||
NET ASSETS – 100.0% |
|
$ | 1,727,019,018 |
* |
Non-income producing security. |
‡ |
Value determined using significant unobservable inputs. |
(a) |
The security or a portion of this security is on loan at October 31, 2021. The total value of securities on loan at October 31, 2021 was $202,123,212, collateralized in the form of cash with a value of $156,227,373 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $46,298,478 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from November 4, 2021 – February 15, 2051 and $4,766,985 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from November 17, 2021 – September 20, 2117; a total value of $207,292,836. |
(b) |
Investment in affiliated company. Northern Trust Investments, Inc., the Investment Adviser of the Fund, is a subsidiary of Northern Trust Corporation. |
(c) |
Amount represents less than one share. |
(d) |
Security fair valued as of October 31, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at October 31, 2021 amounted to $25,720, which represents approximately 0.00% of net assets of the Fund. |
(e) |
Represents less than 0.05% of net assets. |
See Accompanying Notes to the Financial Statements.
176 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
(f) |
The security was purchased with cash collateral held from securities on loan at October 31, 2021. The total value of securities purchased was $156,227,160. |
Percentages shown are based on Net Assets.
Abbreviations
CVR –Contingent Value Rights
As of October 31, 2021, 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 |
$ | 793,582,567 | ||
Aggregate gross unrealized depreciation |
(11,340,264 | ) | ||
Net unrealized appreciation |
$ | 782,242,303 | ||
Federal income tax cost |
$ | 1,089,191,250 |
Investment in a company which was affiliated for the period ended October 31, 2021, was as follows:
Security | Value October 31, 2020 |
Purchases at Cost |
Sales Proceeds |
Shares October 31, 2021 |
Value October 31, 2021 |
Change
in Unrealized Appreciation (Depreciation) |
Dividend Income |
Realized Gain |
||||||||||||||||||||||||
Northern Trust Corp. |
$ | 577,006 | $ | 48,032 | $ | 51,220 | 7,334 | $ | 902,375 | $ | 305,597 | $ | 21,094 | $ | 22,960 |
Futures Contracts
FlexShares® Morningstar US Market Factor Tilt Index Fund had the following open futures contracts as of October 31, 2021:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Appreciation* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
Russell 2000 Emini Index |
18 | 12/17/2021 | USD | $ | 2,065,770 | $ | 65,461 | |||||||||||||
S&P 500 E-Mini Index |
30 | 12/17/2021 | USD | 6,895,500 | 311,165 | |||||||||||||||
S&P Midcap 400 E-Mini Index |
7 | 12/17/2021 | USD | 1,952,580 | 79,750 | |||||||||||||||
$ | 456,376 |
* |
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 |
99.3 | % | ||
Warrants |
0.0 | † | ||
Rights |
0.0 | † | ||
Securities Lending Reinvestments |
9.0 | |||
Others(1) |
(8.3 | ) | ||
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 | 177 |
Schedule of Investments
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund
October 31, 2021
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.0% | ||||||||
Aerospace & Defense – 0.8% | ||||||||
Airbus SE* |
10,164 | $ | 1,300,909 | |||||
Austal Ltd. |
71,940 | 101,584 | ||||||
Babcock International Group plc* |
179,608 | 786,109 | ||||||
BAE Systems plc |
70,796 | 535,487 | ||||||
CAE, Inc.* (a) |
4,836 | 146,420 | ||||||
Chemring Group plc |
38,412 | 154,011 | ||||||
Dassault Aviation SA |
550 | 57,443 | ||||||
Elbit Systems Ltd. |
412 | 64,994 | ||||||
LISI |
880 | 24,492 | ||||||
Meggitt plc* |
21,438 | 220,396 | ||||||
MTU Aero Engines AG |
792 | 176,297 | ||||||
QinetiQ Group plc |
36,064 | 133,177 | ||||||
Rolls-Royce Holdings plc* |
201,334 | 363,850 | ||||||
Saab AB, Class B |
2,493 | 69,317 | ||||||
Safran SA |
5,808 | 779,941 | ||||||
Singapore Technologies Engineering Ltd. |
17,900 | 50,840 | ||||||
Thales SA |
1,144 | 105,461 | ||||||
Ultra Electronics Holdings plc |
6,341 | 281,792 | ||||||
5,352,520 | ||||||||
Air Freight & Logistics – 0.7% | ||||||||
bpost SA* |
45,452 | 389,235 | ||||||
Cia de Distribucion Integral Logista Holdings SA |
28,116 | 599,987 | ||||||
Deutsche Post AG (Registered) |
17,908 | 1,109,150 | ||||||
DSV A/S |
3,205 | 745,615 | ||||||
Freightways Ltd.(a) |
12,987 | 120,359 | ||||||
ID Logistics Group* |
81 | 29,762 | ||||||
Kerry Logistics Network Ltd.(a) |
40,500 | 98,399 | ||||||
Kintetsu World Express, Inc. |
1,900 | 45,390 | ||||||
Konoike Transport Co. Ltd. |
6,400 | 69,655 | ||||||
Mainfreight Ltd.(a) |
2,708 | 174,224 | ||||||
PostNL NV |
40,622 | 176,428 | ||||||
Royal Mail plc |
14,455 | 83,319 | ||||||
SBS Holdings, Inc. |
8,800 | 311,405 | ||||||
SG Holdings Co. Ltd. |
9,000 | 224,951 | ||||||
Yamato Holdings Co. Ltd. |
6,200 | 152,084 | ||||||
4,329,963 |
Investments | Shares | Value | ||||||
Airlines – 0.2% | ||||||||
Air Canada* (a) |
7,936 | $ | 142,068 | |||||
Air France-KLM* (a) |
9,504 | 44,764 | ||||||
Air New Zealand Ltd.* (a) |
11,968 | 14,303 | ||||||
ANA Holdings, Inc.* (a) |
4,500 | 104,701 | ||||||
easyJet plc* |
2,628 | 22,443 | ||||||
Exchange Income Corp.(a) |
15,141 | 520,355 | ||||||
Finnair OYJ* (a) |
149,292 | 114,234 | ||||||
Japan Airlines Co. Ltd.* (a) |
500 | 10,748 | ||||||
JET2 plc* |
2,813 | 47,023 | ||||||
Qantas Airways Ltd.* |
35,730 | 143,577 | ||||||
Singapore Airlines Ltd.* |
16,799 | 64,779 | ||||||
Wizz Air Holdings plc* (b) |
728 | 46,113 | ||||||
1,275,108 | ||||||||
Auto Components – 1.5% | ||||||||
Aisin Corp. |
5,700 | 208,204 | ||||||
ARB Corp. Ltd. |
997 | 36,386 | ||||||
Brembo SpA |
3,647 | 47,903 | ||||||
Bridgestone Corp. |
15,700 | 691,062 | ||||||
CIE Automotive SA |
3,217 | 87,562 | ||||||
Cie Generale des Etablissements Michelin SCA |
4,576 | 718,610 | ||||||
Cie Plastic Omnium SA |
720 | 19,964 | ||||||
Continental AG* |
1,980 | 232,618 | ||||||
Denso Corp. |
8,100 | 584,138 | ||||||
Dometic Group AB(c) |
5,962 | 86,669 | ||||||
Exedy Corp. |
8,800 | 130,659 | ||||||
Faurecia SE |
3,967 | 206,578 | ||||||
FCC Co. Ltd. |
8,800 | 121,552 | ||||||
Gestamp Automocion SA* (b) |
65,516 | 292,811 | ||||||
G-Tekt Corp. |
15,100 | 187,517 | ||||||
GUD Holdings Ltd. |
4,852 | 44,461 | ||||||
Hella GmbH & Co. KGaA |
1,496 | 103,875 | ||||||
HI-LEX Corp. |
8,800 | 140,152 | ||||||
Ichikoh Industries Ltd. |
4,200 | 20,774 | ||||||
Johnson Electric Holdings Ltd.(a) |
133,278 | 296,057 | ||||||
JTEKT Corp. |
2,300 | 20,232 | ||||||
Koito Manufacturing Co. Ltd. |
3,200 | 180,732 | ||||||
KYB Corp.* |
7,900 | 210,621 | ||||||
Linamar Corp. |
2,622 | 143,987 | ||||||
Magna International, Inc. |
7,392 | 600,341 |
See Accompanying Notes to the Financial Statements.
178 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Martinrea International, Inc. |
39,776 | $ | 368,703 | |||||
Musashi Seimitsu Industry Co. Ltd. |
17,600 | 329,387 | ||||||
NGK Spark Plug Co. Ltd.(a) |
2,700 | 42,906 | ||||||
NHK Spring Co. Ltd.(a) |
2,900 | 21,796 | ||||||
Nifco, Inc. |
2,400 | 76,299 | ||||||
Nippon Seiki Co. Ltd. |
30,500 | 306,271 | ||||||
NOK Corp. |
200 | 2,305 | ||||||
Nokian Renkaat OYJ |
2,552 | 95,687 | ||||||
Pacific Industrial Co. Ltd. |
16,100 | 163,365 | ||||||
Piolax, Inc. |
17,600 | 252,520 | ||||||
Pirelli & C SpA(b) |
2,876 | 17,680 | ||||||
Schaeffler AG (Preference) |
69,652 | 552,949 | ||||||
Stanley Electric Co. Ltd.(a) |
3,800 | 95,512 | ||||||
Sumitomo Electric Industries Ltd. |
17,600 | 232,531 | ||||||
Sumitomo Riko Co. Ltd. |
30,000 | 194,694 | ||||||
Sumitomo Rubber Industries Ltd.(a) |
9,300 | 114,267 | ||||||
TI Fluid Systems plc(b) |
97,988 | 356,612 | ||||||
Tokai Rika Co. Ltd. |
2,400 | 33,466 | ||||||
Topre Corp. |
13,200 | 151,883 | ||||||
Toyo Tire Corp. |
4,600 | 76,166 | ||||||
Toyoda Gosei Co. Ltd. |
2,000 | 40,710 | ||||||
Toyota Boshoku Corp. |
2,700 | 51,668 | ||||||
Toyota Industries Corp. |
4,500 | 381,232 | ||||||
TPR Co. Ltd. |
5,500 | 69,748 | ||||||
TS Tech Co. Ltd. |
4,800 | 64,028 | ||||||
Valeo |
2,904 | 85,125 | ||||||
Yokohama Rubber Co. Ltd. (The)(a) |
3,600 | 60,681 | ||||||
9,651,656 | ||||||||
Automobiles – 2.2% | ||||||||
Aston Martin Lagonda Global Holdings plc* (b) |
578 | 13,532 | ||||||
Bayerische Motoren Werke AG |
7,348 | 741,843 | ||||||
Bayerische Motoren Werke AG (Preference) |
2,092 | 178,183 | ||||||
Daimler AG (Registered) |
19,360 | 1,920,950 | ||||||
Ferrari NV |
1,848 | 438,413 | ||||||
Honda Motor Co. Ltd. |
39,600 | 1,163,082 | ||||||
Isuzu Motors Ltd. |
21,000 | 281,596 | ||||||
Mazda Motor Corp.* |
4,100 | 36,640 |
Investments | Shares | Value | ||||||
Automobiles – (continued) | ||||||||
Mitsubishi Motors Corp.* |
900 | $ | 2,865 | |||||
Nissan Motor Co. Ltd.* |
44,400 | 224,833 | ||||||
Nissan Shatai Co. Ltd. |
35,200 | 249,124 | ||||||
Porsche Automobil Holding SE (Preference) |
4,444 | 461,928 | ||||||
Renault SA* |
2,728 | 98,056 | ||||||
Stellantis NV |
52,120 | 1,040,116 | ||||||
Subaru Corp. |
13,600 | 265,738 | ||||||
Suzuki Motor Corp. |
13,200 | 587,503 | ||||||
Toyota Motor Corp. |
308,000 | 5,419,882 | ||||||
Trigano SA |
352 | 65,950 | ||||||
Volkswagen AG (Preference) |
4,048 | 907,959 | ||||||
Yamaha Motor Co. Ltd.(a) |
6,900 | 191,524 | ||||||
14,289,717 | ||||||||
Banks – 9.7% | ||||||||
77 Bank Ltd. (The) |
22,000 | 224,196 | ||||||
ABN AMRO Bank NV, CVA(b) |
12,232 | 180,143 | ||||||
Aktia Bank OYJ |
19,932 | 285,561 | ||||||
AMCO – Asset Management Co. SpA* (d) |
239 | 1,083 | ||||||
Aozora Bank Ltd. |
900 | 20,569 | ||||||
Australia & New Zealand Banking Group Ltd. |
63,668 | 1,345,684 | ||||||
Awa Bank Ltd. (The)(a) |
13,200 | 245,536 | ||||||
Banca Monte dei Paschi di Siena SpA* (a) |
136,487 | 162,846 | ||||||
Banca Popolare di Sondrio SCPA |
47,344 | 205,787 | ||||||
Banco Bilbao Vizcaya Argentaria SA |
143,572 | 1,007,193 | ||||||
Banco BPM SpA |
32,208 | 100,115 | ||||||
Banco Comercial Portugues SA, Class R* (a) |
3,341,448 | 603,622 | ||||||
Banco de Sabadell SA* |
260,524 | 209,959 | ||||||
Banco Espirito Santo SA (Registered)* ‡ (d) |
48,647 | — | ||||||
Banco Santander SA(a) |
389,180 | 1,475,665 | ||||||
Bank Hapoalim BM |
25,652 | 252,713 | ||||||
Bank Leumi Le-Israel BM |
33,308 | 318,324 | ||||||
Bank Millennium SA* |
289,080 | 663,485 | ||||||
Bank of Ireland Group plc* |
19,096 | 114,074 | ||||||
Bank of Kyoto Ltd. (The)(a) |
2,600 | 116,746 | ||||||
Bank of Montreal(a) |
14,872 | 1,612,158 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 179 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Bank of Nova Scotia (The) |
30,316 | $ | 1,984,462 | |||||
Bank of Queensland Ltd.(a) |
13,492 | 89,178 | ||||||
Bank Polska Kasa Opieki SA |
6,644 | 219,570 | ||||||
Bankinter SA(a) |
21,280 | 117,270 | ||||||
Banque Cantonale de Geneve |
480 | 88,252 | ||||||
Banque Cantonale Vaudoise (Registered) |
701 | 56,540 | ||||||
Barclays plc |
341,396 | 946,466 | ||||||
BAWAG Group AG(b) |
3,120 | 196,598 | ||||||
Bendigo & Adelaide Bank Ltd. |
9,421 | 65,454 | ||||||
Berner Kantonalbank AG (Registered)(a) |
2,112 | 486,540 | ||||||
BNP Paribas SA |
28,776 | 1,928,129 | ||||||
BPER Banca |
364,848 | 799,896 | ||||||
CaixaBank SA |
74,713 | 214,856 | ||||||
Canadian Imperial Bank of Commerce |
10,648 | 1,289,993 | ||||||
Canadian Western Bank(a) |
34,672 | 1,107,389 | ||||||
Chiba Bank Ltd. (The)(a) |
17,400 | 107,734 | ||||||
Close Brothers Group plc |
5,588 | 110,300 | ||||||
Commerzbank AG* |
13,464 | 98,411 | ||||||
Commonwealth Bank of Australia |
28,996 | 2,279,815 | ||||||
Concordia Financial Group Ltd. |
5,921 | 23,523 | ||||||
Credit Agricole SA |
26,010 | 392,505 | ||||||
Credito Emiliano SpA |
23,232 | 176,367 | ||||||
Dah Sing Banking Group Ltd. |
54,640 | 52,399 | ||||||
Dah Sing Financial Holdings Ltd. |
52,800 | 164,596 | ||||||
Danske Bank A/S |
11,000 | 186,346 | ||||||
DBS Group Holdings Ltd. |
44,956 | 1,051,140 | ||||||
DNB Bank ASA(a) |
19,184 | 455,374 | ||||||
Erste Group Bank AG |
6,908 | 296,588 | ||||||
FIBI Holdings Ltd. |
6,028 | 265,420 | ||||||
FinecoBank Banca Fineco SpA* |
14,388 | 274,983 | ||||||
Fukuoka Financial Group, Inc. |
2,800 | 50,266 | ||||||
Graubuendner Kantonalbank |
7 | 11,683 | ||||||
Gunma Bank Ltd. (The)(a) |
175,800 | 542,702 | ||||||
Hachijuni Bank Ltd. (The)(a) |
3,200 | 10,692 | ||||||
Hang Seng Bank Ltd. |
13,200 | 251,136 | ||||||
Heartland Group Holdings Ltd. |
250,052 | 420,532 | ||||||
Hirogin Holdings, Inc. |
14,000 | 76,983 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Hokkoku Financial Holdings, Inc.(a) |
7,900 | $ | 137,527 | |||||
Hokuhoku Financial Group, Inc. |
39,200 | 280,528 | ||||||
HSBC Holdings plc |
509,740 | 3,084,876 | ||||||
Hyakugo Bank Ltd. (The) |
74,800 | 216,479 | ||||||
ING Groep NV |
85,404 | 1,296,699 | ||||||
Intesa Sanpaolo SpA |
370,084 | 1,052,497 | ||||||
Israel Discount Bank Ltd., Class A* |
39,662 | 239,717 | ||||||
Iyo Bank Ltd. (The) |
21,800 | 106,491 | ||||||
Juroku Financial Group, Inc. |
10,600 | 192,339 | ||||||
Jyske Bank A/S (Registered)* |
1,292 | 63,109 | ||||||
KBC Group NV |
6,468 | 602,999 | ||||||
Keiyo Bank Ltd. (The) |
49,700 | 193,090 | ||||||
Kiyo Bank Ltd. (The)(a) |
24,200 | 317,078 | ||||||
Kyushu Financial Group, Inc. |
7,600 | 25,528 | ||||||
Laurentian Bank of Canada(a) |
14,036 | 471,849 | ||||||
Liechtensteinische Landesbank AG |
6,072 | 358,838 | ||||||
Lloyds Banking Group plc |
1,543,300 | 1,062,393 | ||||||
Luzerner Kantonalbank AG (Registered) |
204 | 94,437 | ||||||
Mebuki Financial Group, Inc. |
28,010 | 57,236 | ||||||
Mediobanca Banca di Credito Finanziario SpA* |
14,784 | 176,477 | ||||||
Mitsubishi UFJ Financial Group, Inc.(a) |
290,400 | 1,585,389 | ||||||
Mizrahi Tefahot Bank Ltd. |
1,889 | 68,754 | ||||||
Mizuho Financial Group, Inc. |
57,229 | 755,358 | ||||||
Musashino Bank Ltd. (The)(a) |
12,100 | 189,525 | ||||||
Nanto Bank Ltd. (The) |
46 | 791 | ||||||
National Australia Bank Ltd. |
58,828 | 1,268,572 | ||||||
National Bank of Canada |
8,272 | 683,756 | ||||||
NatWest Group plc |
55,352 | 167,757 | ||||||
Nishi-Nippon Financial Holdings, Inc. |
44,000 | 256,610 | ||||||
Nordea Bank Abp |
58,388 | 714,239 | ||||||
North Pacific Bank Ltd.(a) |
154,000 | 318,737 | ||||||
Ogaki Kyoritsu Bank Ltd. (The)(a) |
18,800 | 311,946 | ||||||
Okinawa Financial Group, Inc.(a) |
11,140 | 244,342 |
See Accompanying Notes to the Financial Statements.
180 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Oversea-Chinese Banking Corp. Ltd. |
105,670 | $ | 924,662 | |||||
Powszechna Kasa Oszczednosci Bank Polski SA* |
20,768 | 254,218 | ||||||
Raiffeisen Bank International AG |
6,028 | 176,490 | ||||||
Resona Holdings, Inc. |
42,600 | 159,902 | ||||||
Ringkjoebing Landbobank A/S |
1,100 | 139,803 | ||||||
Royal Bank of Canada |
33,440 | 3,475,246 | ||||||
San-In Godo Bank Ltd. (The)(a) |
57,200 | 279,416 | ||||||
Sbanken ASA(b) |
31,592 | 369,724 | ||||||
Seven Bank Ltd. |
47,200 | 99,761 | ||||||
Shiga Bank Ltd. (The) |
23,000 | 370,945 | ||||||
Shinsei Bank Ltd.(a) |
5,200 | 85,964 | ||||||
Shizuoka Bank Ltd. (The) |
8,400 | 67,554 | ||||||
Skandinaviska Enskilda Banken AB, Class A |
32,120 | 502,080 | ||||||
Skandinaviska Enskilda Banken AB, Class C |
684 | 10,959 | ||||||
Societe Generale SA |
15,840 | 528,570 | ||||||
Spar Nord Bank A/S |
34,364 | 443,158 | ||||||
SpareBank 1 Nord Norge |
40,216 | 486,816 | ||||||
Sparebank 1 Oestlandet |
1,329 | 21,869 | ||||||
SpareBank 1 SMN |
3,103 | 51,574 | ||||||
SpareBank 1 SR-Bank ASA |
8,041 | 123,001 | ||||||
Sparebanken Vest |
37,576 | 437,979 | ||||||
St Galler Kantonalbank AG (Registered) |
110 | 50,802 | ||||||
Standard Chartered plc |
48,224 | 327,144 | ||||||
Sumitomo Mitsui Financial Group, Inc. |
35,200 | 1,148,689 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. |
8,800 | 289,719 | ||||||
Suruga Bank Ltd.(a) |
97,600 | 357,788 | ||||||
Svenska Handelsbanken AB, Class A |
26,796 | 306,819 | ||||||
Svenska Handelsbanken AB, Class B |
908 | 11,471 | ||||||
Swedbank AB, Class A(a) |
20,504 | 444,625 | ||||||
Sydbank A/S |
25,432 | 874,326 | ||||||
TBC Bank Group plc |
17,874 | 384,662 | ||||||
Toronto-Dominion Bank (The) |
42,372 | 3,071,034 | ||||||
Unicaja Banco SA(b) |
401,221 | 429,490 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
UniCredit SpA |
45,672 | $ | 603,803 | |||||
United Overseas Bank Ltd. |
37,426 | 742,414 | ||||||
Valiant Holding AG (Registered) |
6,468 | 641,314 | ||||||
Virgin Money UK plc* |
63,052 | 175,709 | ||||||
Walliser Kantonalbank (Registered) |
485 | 53,609 | ||||||
Westpac Banking Corp. |
56,980 | 1,098,616 | ||||||
62,653,235 | ||||||||
Beverages – 1.1% | ||||||||
AG Barr plc |
4,785 | 32,566 | ||||||
Anheuser-Busch InBev SA/NV(a) |
13,024 | 795,351 | ||||||
Asahi Group Holdings Ltd. |
12,700 | 574,382 | ||||||
Britvic plc |
7,320 | 89,101 | ||||||
Budweiser
Brewing Co. APAC |
39,600 | 109,193 | ||||||
C&C Group plc* (a) |
23,522 | 83,573 | ||||||
Carlsberg A/S, Class B |
1,716 | 283,360 | ||||||
Coca-Cola Bottlers Japan Holdings, Inc.(a) |
3,354 | 46,004 | ||||||
Coca-Cola Europacific Partners plc |
3,487 | 183,591 | ||||||
Coca-Cola HBC AG, DI* |
4,000 | 138,884 | ||||||
Davide Campari-Milano NV |
13,420 | 190,712 | ||||||
Diageo plc |
40,040 | 1,993,417 | ||||||
Fevertree Drinks plc |
2,199 | 68,394 | ||||||
Heineken Holding NV |
1,496 | 138,846 | ||||||
Heineken NV |
3,212 | 356,171 | ||||||
Ito En Ltd.(a) |
800 | 53,181 | ||||||
Kirin Holdings Co. Ltd. |
13,238 | 229,989 | ||||||
Molson Coors Canada, Inc., Class B |
156 | 6,890 | ||||||
Pernod Ricard SA |
3,608 | 829,644 | ||||||
Primo Water Corp. |
5,512 | 87,601 | ||||||
Remy Cointreau SA |
584 | 118,001 | ||||||
Royal Unibrew A/S |
1,264 | 156,989 | ||||||
Sapporo Holdings Ltd.(a) |
1,800 | 38,991 | ||||||
Suntory Beverage & Food Ltd. |
3,000 | 116,159 | ||||||
Takara Holdings, Inc. |
8,600 | 117,432 | ||||||
Treasury Wine Estates Ltd. |
8,668 | 75,001 | ||||||
6,913,423 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 181 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – 0.6% | ||||||||
Abcam plc* |
4,545 | $ | 103,045 | |||||
AnGes, Inc.* (a) |
17,600 | 83,504 | ||||||
Argenx SE* |
704 | 210,927 | ||||||
Bavarian Nordic A/S* |
2,132 | 102,150 | ||||||
BioGaia AB, Class B |
1,134 | 69,716 | ||||||
Clinuvel Pharmaceuticals Ltd. |
1,368 | 39,672 | ||||||
CSL Ltd. |
7,964 | 1,797,459 | ||||||
Galapagos NV* |
924 | 48,979 | ||||||
Genmab A/S* |
1,320 | 592,202 | ||||||
Genus plc |
520 | 39,417 | ||||||
Grifols SA(a) |
3,564 | 81,643 | ||||||
Grifols SA (Preference), Class B |
5,680 | 74,737 | ||||||
Hansa Biopharma AB* |
2,660 | 30,148 | ||||||
HEALIOS KK* |
1,100 | 16,602 | ||||||
Imugene Ltd.* |
402,116 | 149,505 | ||||||
MorphoSys AG* |
880 | 41,499 | ||||||
Oncopeptides AB* (a) (b) |
12,100 | 5,472 | ||||||
PeptiDream, Inc.* |
2,500 | 60,360 | ||||||
Pharma Mar SA(a) |
414 | 32,167 | ||||||
PureTech Health plc* |
5,168 | 25,077 | ||||||
SanBio Co. Ltd.* (a) |
2,200 | 23,172 | ||||||
Swedish Orphan Biovitrum AB* |
5,369 | 145,657 | ||||||
Takara Bio, Inc. |
400 | 10,391 | ||||||
Trillium Therapeutics, Inc.* (a) |
10,992 | 198,549 | ||||||
Vitrolife AB |
1,652 | 107,524 | ||||||
4,089,574 | ||||||||
Building Products – 1.3% | ||||||||
AGC, Inc.(a) |
4,400 | 218,794 | ||||||
Aica Kogyo Co. Ltd. |
1,500 | 45,845 | ||||||
Assa Abloy AB, Class B |
15,928 | 466,425 | ||||||
Bunka Shutter Co. Ltd.(a) |
28,100 | 273,052 | ||||||
Carel Industries SpA(a) (b) |
4,028 | 116,535 | ||||||
Central Glass Co. Ltd. |
17,800 | 330,008 | ||||||
Cie de Saint-Gobain |
13,640 | 940,148 | ||||||
Daikin Industries Ltd. |
5,300 | 1,156,913 | ||||||
dormakaba Holding AG |
132 | 98,016 | ||||||
Fletcher Building Ltd.(a) |
17,649 | 90,561 | ||||||
Geberit AG (Registered) |
528 | 413,039 | ||||||
Genuit Group plc |
15,664 | 142,570 | ||||||
GWA Group Ltd.(a) |
17,760 | 36,284 | ||||||
Inwido AB |
7,358 | 134,935 |
Investments | Shares | Value | ||||||
Building Products – (continued) | ||||||||
James Halstead plc |
4,686 | $ | 35,714 | |||||
Kingspan Group plc |
2,641 | 304,529 | ||||||
Lindab International AB |
3,680 | 120,574 | ||||||
Lixil Corp. |
4,400 | 112,831 | ||||||
Munters Group AB(b) |
10,384 | 76,654 | ||||||
Nibe Industrier AB, Class B |
30,184 | 449,325 | ||||||
Nichias Corp. |
800 | 19,526 | ||||||
Nichiha Corp.(a) |
13,200 | 378,549 | ||||||
Nippon Sheet Glass Co. Ltd.* |
48,400 | 269,537 | ||||||
Noritz Corp. |
22,000 | 351,923 | ||||||
Reliance Worldwide Corp. Ltd. |
23,739 | 102,881 | ||||||
ROCKWOOL International A/S, Class A |
220 | 88,467 | ||||||
ROCKWOOL International A/S, Class B |
174 | 79,579 | ||||||
Sanwa Holdings Corp. |
9,800 | 113,793 | ||||||
Schweiter Technologies AG |
56 | 80,530 | ||||||
Sekisui Jushi Corp.(a) |
16,800 | 311,911 | ||||||
Takara Standard Co. Ltd. |
15,376 | 203,620 | ||||||
Takasago Thermal Engineering Co. Ltd.(a) |
22,000 | 401,315 | ||||||
TOTO Ltd. |
3,900 | 188,117 | ||||||
Tyman plc |
26,048 | 133,359 | ||||||
Uponor OYJ |
4,092 | 99,634 | ||||||
8,385,493 | ||||||||
Capital Markets – 3.7% | ||||||||
3i Group plc |
22,528 | 421,207 | ||||||
ABG Sundal Collier Holding ASA |
103,928 | 114,379 | ||||||
Abrdn plc |
27,500 | 95,747 | ||||||
AJ Bell plc |
33,088 | 185,957 | ||||||
Amundi SA(b) |
1,440 | 128,399 | ||||||
Anima Holding SpA(b) |
116,996 | 621,457 | ||||||
Ashmore Group plc |
9,588 | 44,344 | ||||||
ASX Ltd. |
2,104 | 131,198 | ||||||
Avanza Bank Holding AB |
2,704 | 107,329 | ||||||
Azimut Holding SpA |
5,680 | 163,606 | ||||||
Banca Generali SpA* |
1,397 | 65,734 | ||||||
Brederode SA* (a) |
80 | 11,295 | ||||||
Brewin Dolphin Holdings plc |
17,746 | 91,585 | ||||||
Brookfield Asset Management, Inc., Class A |
23,584 | 1,421,612 |
See Accompanying Notes to the Financial Statements.
182 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Bure Equity AB |
1,980 | $ | 91,801 | |||||
Canaccord Genuity Group, Inc. |
44,616 | 515,430 | ||||||
CI Financial Corp.(a) |
5,304 | 120,753 | ||||||
Cie Financiere Tradition SA(a) |
1,628 | 198,656 | ||||||
Credit Suisse Group AG (Registered) |
66,880 | 697,675 | ||||||
Daiwa Securities Group, Inc. |
48,400 | 271,108 | ||||||
Deutsche Bank AG (Registered)* |
27,852 | 359,255 | ||||||
Deutsche Boerse AG |
2,684 | 446,030 | ||||||
Draper Esprit plc* |
49,588 | 657,296 | ||||||
EFG International AG* (a) |
34,100 | 239,959 | ||||||
EQT AB |
5,104 | 268,973 | ||||||
Euronext NV(b) |
1,962 | 221,149 | ||||||
Fairfax India Holdings Corp.* (a) (b) |
42,724 | 555,412 | ||||||
flatexDEGIRO AG* |
4,400 | 100,107 | ||||||
Flow Traders(b) |
15,004 | 509,789 | ||||||
Gimv NV |
8,673 | 561,059 | ||||||
GMO Financial Holdings, Inc. |
10,800 | 82,403 | ||||||
Haitong International Securities Group Ltd. |
528,000 | 121,496 | ||||||
Hargreaves Lansdown plc |
5,061 | 106,627 | ||||||
Hong Kong Exchanges & Clearing Ltd. |
21,658 | 1,310,775 | ||||||
IG Group Holdings plc |
673 | 7,320 | ||||||
IGM Financial, Inc.(a) |
2,200 | 87,216 | ||||||
Intermediate Capital Group plc |
6,864 | 206,147 | ||||||
Investec plc |
16,636 | 75,663 | ||||||
IOOF Holdings Ltd.(a) |
43,472 | 133,219 | ||||||
IP Group plc |
452,452 | 747,959 | ||||||
JAFCO Group Co. Ltd. |
300 | 18,917 | ||||||
Japan Exchange Group, Inc. |
7,600 | 179,527 | ||||||
Julius Baer Group Ltd. |
5,720 | 414,281 | ||||||
Jupiter Fund Management plc |
204,468 | 699,005 | ||||||
Liontrust Asset Management plc |
5,896 | 176,186 | ||||||
London Stock Exchange Group plc |
5,060 | 492,456 | ||||||
Macquarie Group Ltd.(d) |
5,984 | 889,163 | ||||||
Magellan Financial Group Ltd. |
2,640 | 68,747 | ||||||
Man Group plc |
61,623 | 196,561 | ||||||
Monex Group, Inc. |
9,200 | 59,545 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Ninety One plc |
39,732 | $ | 142,039 | |||||
Nomura Holdings, Inc. |
61,000 | 294,234 | ||||||
Okasan Securities Group, Inc. |
69,700 | 237,784 | ||||||
Onex Corp. |
157 | 11,682 | ||||||
Partners Group Holding AG |
352 | 615,398 | ||||||
Pendal Group Ltd. |
6,964 | 34,784 | ||||||
Perpetual Ltd. |
3,971 | 112,325 | ||||||
Pinnacle Investment Management Group Ltd. |
16,676 | 214,935 | ||||||
Platinum Asset Management Ltd. |
16 | 37 | ||||||
Quilter plc(a) (b) |
80,080 | 170,802 | ||||||
Rathbone Brothers plc |
26,224 | 708,866 | ||||||
Ratos AB, Class B |
18,348 | 105,493 | ||||||
Rothschild & Co. |
12,584 | 554,116 | ||||||
Sanne Group plc |
9,329 | 115,601 | ||||||
SBI Holdings, Inc. |
4,800 | 123,847 | ||||||
Schroders plc |
960 | 47,636 | ||||||
Schroders plc (Non-Voting) |
96 | 3,250 | ||||||
Singapore Exchange Ltd. |
7,600 | 54,555 | ||||||
St James’s Place plc |
8,712 | 188,623 | ||||||
Swissquote Group Holding SA (Registered) |
880 | 178,552 | ||||||
Tamburi Investment Partners SpA |
16,588 | 187,165 | ||||||
TMX Group Ltd. |
1,313 | 141,930 | ||||||
Tokai Tokyo Financial Holdings, Inc. |
26,400 | 91,222 | ||||||
TP ICAP Group plc |
270,952 | 576,796 | ||||||
UBS Group AG (Registered) |
89,188 | 1,624,661 | ||||||
UOB-Kay Hian Holdings Ltd. |
176,000 | 206,214 | ||||||
Uzabase, Inc.* |
4,400 | 78,565 | ||||||
Value Partners Group Ltd.(a) |
536,000 | 275,612 | ||||||
Van Lanschot Kempen NV, CVA |
14,784 | 410,611 | ||||||
VNV Global AB* (a) |
36,564 | 536,422 | ||||||
Vontobel Holding AG (Registered) |
339 | 31,424 | ||||||
VZ Holding AG |
285 | 29,038 | ||||||
Warsaw Stock Exchange |
18,040 | 199,195 | ||||||
23,794,928 | ||||||||
Chemicals – 3.0% | ||||||||
ADEKA Corp. |
4,200 | 93,190 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 183 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Air Liquide SA |
8,184 | $ | 1,366,088 | |||||
Air Water, Inc. |
6,000 | 91,664 | ||||||
Akzo Nobel NV |
3,344 | 384,740 | ||||||
Arkema SA |
1,716 | 234,726 | ||||||
Asahi Kasei Corp. |
35,200 | 369,365 | ||||||
BASF SE |
21,384 | 1,541,220 | ||||||
Borregaard ASA |
1,692 | 41,003 | ||||||
C Uyemura & Co. Ltd. |
4,400 | 181,364 | ||||||
Chr Hansen Holding A/S(a) |
1,584 | 126,161 | ||||||
Chugoku Marine Paints Ltd.(a) |
27,100 | 208,909 | ||||||
CI Takiron Corp. |
18,400 | 97,789 | ||||||
Clariant AG (Registered)* |
2,836 | 59,777 | ||||||
Corbion NV |
1,352 | 64,305 | ||||||
Covestro AG(b) |
5,940 | 380,823 | ||||||
Croda International plc |
2,552 | 330,855 | ||||||
Daicel Corp. |
100 | 749 | ||||||
DIC Corp.(a) |
2,899 | 76,654 | ||||||
Elkem ASA* (b) |
7 | 28 | ||||||
EMS-Chemie Holding AG (Registered)(a) |
156 | 154,933 | ||||||
Evonik Industries AG |
4,160 | 134,893 | ||||||
FUCHS PETROLUB SE |
55 | 2,025 | ||||||
FUCHS PETROLUB SE (Preference) |
1,182 | 56,684 | ||||||
Fujimori Kogyo Co. Ltd.(a) |
4,400 | 180,013 | ||||||
Fuso Chemical Co. Ltd. |
1,100 | 50,357 | ||||||
Givaudan SA (Registered) |
132 | 622,477 | ||||||
Grupa Azoty SA* |
28,292 | 211,481 | ||||||
Hexpol AB |
5,784 | 67,548 | ||||||
ICL Group Ltd. |
5,140 | 44,043 | ||||||
Israel Corp. Ltd. (The)* |
104 | 38,354 | ||||||
JCU Corp. |
500 | 19,974 | ||||||
Johnson Matthey plc |
3,360 | 125,874 | ||||||
JSP Corp. |
2,300 | 30,902 | ||||||
JSR Corp. |
3,100 | 111,739 | ||||||
K+S AG (Registered)* |
8,712 | 150,171 | ||||||
Kansai Paint Co. Ltd. |
5,300 | 122,385 | ||||||
Koninklijke DSM NV |
2,921 | 639,051 | ||||||
Konishi Co. Ltd. |
8,100 | 125,380 | ||||||
Kumiai Chemical Industry Co. Ltd.(a) |
8,000 | 59,426 | ||||||
Kuraray Co. Ltd.(a) |
2,300 | 20,776 | ||||||
Kureha Corp.(a) |
6,500 | 420,697 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
LANXESS AG |
2,156 | $ | 145,360 | |||||
Lenzing AG* |
485 | 58,372 | ||||||
Lintec Corp. |
1,800 | 40,128 | ||||||
Methanex Corp.(a) |
1,290 | 57,696 | ||||||
Mitsubishi Chemical Holdings Corp. |
27,100 | 224,049 | ||||||
Mitsubishi Gas Chemical Co., Inc. |
6,200 | 124,680 | ||||||
Mitsui Chemicals, Inc. |
5,600 | 165,999 | ||||||
Nihon Parkerizing Co. Ltd.(a) |
50,300 | 499,361 | ||||||
Nippon Kayaku Co. Ltd. |
3,700 | 38,906 | ||||||
Nippon Paint Holdings Co. Ltd.(a) |
29,200 | 312,167 | ||||||
Nippon Sanso Holdings Corp. |
7,200 | 169,542 | ||||||
Nippon Shokubai Co. Ltd. |
400 | 20,838 | ||||||
Nippon Soda Co. Ltd. |
12,039 | 360,563 | ||||||
Nissan Chemical Corp. |
3,800 | 210,954 | ||||||
Nitto Denko Corp. |
3,300 | 256,996 | ||||||
NOF Corp. |
2,000 | 100,153 | ||||||
Novozymes A/S, Class B |
3,828 | 281,785 | ||||||
Nufarm Ltd.* |
23,520 | 76,847 | ||||||
Nutrien Ltd. |
9,152 | 638,658 | ||||||
OCI NV* |
1,318 | 37,369 | ||||||
Okamoto Industries, Inc.(a) |
5,000 | 174,962 | ||||||
Orica Ltd. |
4,722 | 53,661 | ||||||
Osaka Soda Co. Ltd. |
9,400 | 238,081 | ||||||
Sakata INX Corp. |
17,600 | 169,479 | ||||||
Sanyo Chemical Industries Ltd.(a) |
6,900 | 340,688 | ||||||
Shikoku Chemicals Corp. |
20,800 | 255,018 | ||||||
Shin-Etsu Chemical Co. Ltd. |
6,600 | 1,172,401 | ||||||
Shin-Etsu Polymer Co. Ltd. |
22,200 | 199,951 | ||||||
Showa Denko KK(a) |
1,700 | 42,655 | ||||||
Sika AG (Registered) |
2,640 | 895,650 | ||||||
SOL SpA |
3,009 | 69,156 | ||||||
Solvay SA |
1,584 | 188,441 | ||||||
Sumitomo Bakelite Co. Ltd. |
2,400 | 107,555 | ||||||
Sumitomo Chemical Co. Ltd. |
38,200 | 187,608 | ||||||
Symrise AG |
1,980 | 273,931 | ||||||
Synthomer plc |
18,524 | 128,609 | ||||||
T Hasegawa Co. Ltd. |
900 | 21,895 | ||||||
Taiyo Holdings Co. Ltd. |
1,800 | 47,989 | ||||||
Teijin Ltd. |
3,000 | 40,228 |
See Accompanying Notes to the Financial Statements.
184 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Tenma Corp.(a) |
5,700 | $ | 135,570 | |||||
Tessenderlo Group SA* |
2,990 | 109,169 | ||||||
Toagosei Co. Ltd. |
5,300 | 59,077 | ||||||
Tokai Carbon Co. Ltd. |
6,600 | 86,128 | ||||||
Tokuyama Corp. |
3,200 | 54,697 | ||||||
Tokyo Ohka Kogyo Co. Ltd.(a) |
700 | 44,262 | ||||||
Toray Industries, Inc. |
39,600 | 246,195 | ||||||
Tosoh Corp. |
12,200 | 205,322 | ||||||
Toyo Ink SC Holdings Co. Ltd. |
1,600 | 28,120 | ||||||
Toyobo Co. Ltd. |
39,600 | 475,096 | ||||||
Ube Industries Ltd.(a) |
3,900 | 72,510 | ||||||
Umicore SA(a) |
3,256 | 186,818 | ||||||
Victrex plc |
2,830 | 88,757 | ||||||
Wacker Chemie AG |
256 | 46,201 | ||||||
Yara International ASA |
3,432 | 178,836 | ||||||
Zeon Corp. |
8,000 | 94,716 | ||||||
19,578,448 | ||||||||
Commercial Services & Supplies – 0.9% | ||||||||
Befesa SA(b) |
2,288 | 170,253 | ||||||
Biffa plc* (b) |
5,928 | 32,341 | ||||||
Boyd Group Services, Inc.(a) |
208 | 40,306 | ||||||
Brambles Ltd. |
25,652 | 193,443 | ||||||
Bravida Holding AB(b) |
988 | 14,851 | ||||||
Cleanaway Waste Management Ltd. |
56,747 | 114,229 | ||||||
Coor Service Management Holding AB(b) |
6,692 | 64,906 | ||||||
Dai Nippon Printing Co. Ltd. |
3,900 | 96,111 | ||||||
Daiseki Co. Ltd. |
2,999 | 139,660 | ||||||
Derichebourg SA* |
38,324 | 435,965 | ||||||
Downer EDI Ltd. |
24,464 | 115,762 | ||||||
Duskin Co. Ltd. |
3,700 | 88,845 | ||||||
Elis SA* |
2,812 | 53,336 | ||||||
Elis SA – XLON* |
4,520 | 85,889 | ||||||
HomeServe plc |
7,771 | 91,075 | ||||||
Intrum AB |
4,268 | 120,857 | ||||||
Kokuyo Co. Ltd. |
5,600 | 84,866 | ||||||
Lassila & Tikanoja OYJ(a) |
960 | 15,109 | ||||||
Loomis AB |
2,271 | 61,320 | ||||||
Matsuda Sangyo Co. Ltd.(a) |
8,800 | 261,627 | ||||||
Mitie Group plc* |
608,872 | 545,836 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – (continued) | ||||||||
Mitsubishi Pencil Co. Ltd. |
1,800 | $ | 21,532 | |||||
Nippon Kanzai Co. Ltd. |
1,300 | 31,501 | ||||||
Okamura Corp. |
37,000 | 486,086 | ||||||
Park24 Co. Ltd. |
2,200 | 33,591 | ||||||
Pilot Corp. |
500 | 18,285 | ||||||
Prestige International, Inc. |
4,000 | 27,292 | ||||||
Prosegur Cash SA(b) |
163,760 | 112,191 | ||||||
Prosegur Cia de Seguridad SA |
101,332 | 287,303 | ||||||
Rentokil Initial plc |
32,208 | 259,773 | ||||||
Ritchie Bros Auctioneers, Inc. |
2,886 | 196,948 | ||||||
Sato Holdings Corp. |
1,100 | 25,256 | ||||||
Secom Co. Ltd. |
4,400 | 298,633 | ||||||
Securitas AB, Class B |
7,047 | 116,513 | ||||||
Serco Group plc |
57,046 | 98,761 | ||||||
Smart Metering Systems plc |
5,165 | 57,772 | ||||||
Sohgo Security Services Co. Ltd. |
2,900 | 123,604 | ||||||
SPIE SA |
1,216 | 29,552 | ||||||
TOMRA Systems ASA |
2,590 | 166,925 | ||||||
TOPPAN, Inc. |
4,400 | 70,732 | ||||||
Waste Connections, Inc. |
4,928 | 669,497 | ||||||
5,958,334 | ||||||||
Communications Equipment – 0.3% | ||||||||
BATM Advanced Communications Ltd.* |
10,755 | 12,258 | ||||||
Gilat Satellite Networks Ltd. |
21,780 | 180,416 | ||||||
Nokia OYJ* |
97,636 | 561,557 | ||||||
Spirent Communications plc |
56,452 | 222,859 | ||||||
Telefonaktiebolaget LM Ericsson, Class A |
3,789 | 41,470 | ||||||
Telefonaktiebolaget LM Ericsson, Class B |
40,139 | 439,316 | ||||||
VTech Holdings Ltd. |
66,000 | 507,787 | ||||||
1,965,663 | ||||||||
Construction & Engineering – 1.9% | ||||||||
ACS Actividades de Construccion y Servicios SA |
3,426 | 89,722 | ||||||
AF Gruppen ASA |
2,860 | 66,604 | ||||||
Arcadis NV |
2,876 | 140,452 | ||||||
Ashtrom Group Ltd. |
4,545 | 106,420 | ||||||
Badger
Infrastructure Solutions |
2,812 | 77,471 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 185 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Balfour Beatty plc |
6,760 | $ | 23,536 | |||||
Boskalis Westminster |
218 | 6,509 | ||||||
Bouygues SA |
7,440 | 301,348 | ||||||
Chiyoda Corp.* (a) |
34,800 | 126,656 | ||||||
Cie d’Entreprises CFE |
968 | 99,139 | ||||||
CIMIC Group Ltd. |
1,232 | 18,433 | ||||||
COMSYS Holdings Corp.(a) |
4,300 | 106,345 | ||||||
Dai-Dan Co. Ltd.(a) |
8,900 | 186,937 | ||||||
Daiho Corp.(a) |
4,400 | 147,985 | ||||||
Eiffage SA |
1,760 | 181,190 | ||||||
Elco Ltd. |
231 | 14,993 | ||||||
Elecnor SA |
20,900 | 253,959 | ||||||
Electra Ltd. |
103 | 67,865 | ||||||
EXEO Group, Inc. |
3,900 | 89,886 | ||||||
Ferrovial SA |
11,572 | 365,058 | ||||||
Fomento de Construcciones y Contratas SA |
3,843 | 48,920 | ||||||
GOLD FIN HLDG* ‡ (d) |
89,827 | — | ||||||
Hazama Ando Corp.(a) |
81,600 | 551,037 | ||||||
HOCHTIEF AG |
442 | 34,117 | ||||||
INFRONEER Holdings, Inc.(a) |
10,835 | 89,702 | ||||||
Instalco AB(b) |
2,482 | 131,491 | ||||||
JDC Corp. |
13,200 | 69,111 | ||||||
JGC Holdings Corp.(a) |
1,000 | 9,349 | ||||||
Kajima Corp. |
12,700 | 155,931 | ||||||
Kandenko Co. Ltd. |
3,000 | 23,205 | ||||||
Kinden Corp. |
2,300 | 37,639 | ||||||
Kumagai Gumi Co. Ltd. |
14,000 | 345,749 | ||||||
Kyudenko Corp. |
2,100 | 66,485 | ||||||
Maire Tecnimont SpA(a) |
56,848 | 245,124 | ||||||
Mirait Holdings Corp. |
6,700 | 128,271 | ||||||
Morgan Sindall Group plc |
17,556 | 547,476 | ||||||
NCC AB, Class B |
246 | 4,259 | ||||||
Nippo Corp. |
2,000 | 70,599 | ||||||
Nippon Densetsu Kogyo Co. Ltd.(a) |
23,700 | 364,775 | ||||||
Nippon Road Co. Ltd. (The) |
1,900 | 137,137 | ||||||
Nishimatsu Construction Co. Ltd.(a) |
15,800 | 455,190 | ||||||
NRW Holdings Ltd. |
182,424 | 250,059 | ||||||
Obayashi Corp. |
8,900 | 74,775 | ||||||
Okumura Corp. |
16,200 | 417,698 | ||||||
Peab AB, Class B |
3,999 | 50,148 |
Investments | Shares | Value | ||||||
Construction & Engineering – (continued) | ||||||||
Penta-Ocean Construction Co. Ltd. |
1,500 | $ | 10,300 | |||||
Raito Kogyo Co. Ltd. |
25,200 | 446,649 | ||||||
Raiznext Corp. |
4,400 | 47,463 | ||||||
Sacyr SA – BATE(a) |
154,843 | 440,812 | ||||||
Sanki Engineering Co. Ltd. |
19,200 | 241,463 | ||||||
Shapir Engineering and Industry Ltd. |
7,497 | 61,413 | ||||||
Shikun & Binui Ltd.* |
10,568 | 62,936 | ||||||
Shimizu Corp.(a) |
9,000 | 65,749 | ||||||
SHO-BOND Holdings Co. Ltd. |
1,200 | 50,094 | ||||||
Skanska AB, Class B |
5,096 | 129,351 | ||||||
Sumitomo Densetsu Co. Ltd.(a) |
8,800 | 168,630 | ||||||
Sumitomo Mitsui Construction Co. Ltd. |
41,240 | 174,689 | ||||||
Sweco AB, Class B(a) |
7,413 | 117,990 | ||||||
Taikisha Ltd. |
15,200 | 432,572 | ||||||
Taisei Corp. |
3,500 | 109,581 | ||||||
Takamatsu Construction Group Co. Ltd. |
4,500 | 78,812 | ||||||
Tess Holdings Co. Ltd. |
4,200 | 86,192 | ||||||
Toda Corp. |
14,000 | 88,033 | ||||||
Toenec Corp.(a) |
4,400 | 129,270 | ||||||
Tokyu Construction Co. Ltd.(a) |
22,800 | 160,965 | ||||||
Totetsu Kogyo Co. Ltd.(a) |
10,600 | 230,081 | ||||||
Veidekke ASA |
3,088 | 44,389 | ||||||
Vinci SA |
7,920 | 846,610 | ||||||
Webuild SpA(a) |
180,136 | 446,110 | ||||||
WSP Global, Inc. |
1,210 | 163,780 | ||||||
YIT OYJ |
68,409 | 403,748 | ||||||
Yokogawa Bridge Holdings Corp. |
18,000 | 362,131 | ||||||
Yurtec Corp. |
4,600 | 26,868 | ||||||
12,405,436 | ||||||||
Construction Materials – 0.6% | ||||||||
Boral Ltd.* |
13,964 | 66,916 | ||||||
Breedon Group plc |
45,296 | 60,848 | ||||||
Brickworks Ltd.(a) |
3,147 | 56,114 | ||||||
Buzzi Unicem SpA |
3,148 | 73,480 | ||||||
Cementir Holding NV |
19,404 | 204,118 | ||||||
CRH plc |
12,981 | 623,847 | ||||||
CSR Ltd. |
29,348 | 130,717 | ||||||
HeidelbergCement AG |
3,300 | 248,765 |
See Accompanying Notes to the Financial Statements.
186 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction Materials – (continued) | ||||||||
Holcim Ltd.* |
11,880 | $ | 594,293 | |||||
Ibstock plc(b) |
9,600 | 26,266 | ||||||
Imerys SA |
1,103 | 47,841 | ||||||
James Hardie Industries plc, CHDI |
6,640 | 257,594 | ||||||
Marshalls plc |
15,362 | 149,192 | ||||||
Mitani Sekisan Co. Ltd.(a) |
4,500 | 285,332 | ||||||
Sumitomo
Osaka Cement Co. |
14,900 | 416,847 | ||||||
Taiheiyo Cement Corp. |
100 | 2,114 | ||||||
Titan Cement International SA* |
13,420 | 234,197 | ||||||
Vicat SA |
9,504 | 405,295 | ||||||
Wienerberger AG |
3,846 | 136,283 | ||||||
4,020,059 | ||||||||
Consumer Finance – 0.3% | ||||||||
Acom Co. Ltd.(a) |
24,400 | 81,102 | ||||||
AEON Financial Service Co. Ltd. |
400 | 5,059 | ||||||
Aiful Corp.(a) |
145,200 | 481,347 | ||||||
B2Holding ASA* |
107,052 | 117,058 | ||||||
Cembra Money Bank AG |
726 | 48,506 | ||||||
Credit Corp. Group Ltd. |
3,350 | 78,882 | ||||||
Credit Saison Co. Ltd. |
6,200 | 75,634 | ||||||
goeasy Ltd.(a) |
1,320 | 206,527 | ||||||
Isracard Ltd. |
11,630 | 46,751 | ||||||
Jaccs Co. Ltd. |
13,200 | 350,765 | ||||||
Provident Financial plc* |
11,220 | 56,690 | ||||||
Resurs Holding AB(b) |
36,300 | 195,268 | ||||||
Sun Hung Kai & Co. Ltd. |
105,996 | 55,185 | ||||||
Zip Co. Ltd.* (a) |
14,040 | 68,545 | ||||||
1,867,319 | ||||||||
Containers & Packaging – 0.5% | ||||||||
BillerudKorsnas AB |
2,965 | 61,969 | ||||||
Cascades, Inc. |
27,764 | 321,194 | ||||||
CCL Industries, Inc., Class B |
2,960 | 161,546 | ||||||
DS Smith plc |
27,632 | 145,219 | ||||||
FP Corp. |
1,200 | 40,675 | ||||||
Fuji Seal International, Inc. |
19,600 | 429,215 | ||||||
Huhtamaki OYJ |
2,051 | 89,387 | ||||||
Intertape Polymer Group, Inc. |
23,540 | 534,020 |
Investments | Shares | Value | ||||||
Containers & Packaging – (continued) | ||||||||
Mayr Melnhof Karton AG |
275 | $ | 54,165 | |||||
Pact Group Holdings Ltd. |
77,704 | 180,927 | ||||||
Rengo Co. Ltd. |
700 | 5,298 | ||||||
SIG Combibloc Group AG* |
8,228 | 215,391 | ||||||
Smurfit Kappa Group plc |
5,148 | 269,816 | ||||||
Toyo Seikan Group Holdings Ltd. |
5,600 | 66,203 | ||||||
Transcontinental, Inc., Class A(a) |
29,040 | 459,186 | ||||||
Vidrala SA |
396 | 42,023 | ||||||
Winpak Ltd. |
74 | 2,312 | ||||||
3,078,546 | ||||||||
Distributors – 0.2% | ||||||||
Arata Corp.(a) |
7,900 | 278,864 | ||||||
Bapcor Ltd. |
16,060 | 95,898 | ||||||
Doshisha Co. Ltd. |
7,000 | 109,397 | ||||||
Inchcape plc |
8,938 | 101,200 | ||||||
Inter Cars SA |
4,400 | 504,383 | ||||||
PALTAC Corp.(a) |
800 | 35,361 | ||||||
1,125,103 | ||||||||
Diversified Consumer Services – 0.1% | ||||||||
AcadeMedia AB(b) |
28,644 | 205,112 | ||||||
Benesse Holdings, Inc. |
2,000 | 45,604 | ||||||
G8 Education Ltd.* |
457,072 | 377,638 | ||||||
IDP Education Ltd. |
2,501 | 70,350 | ||||||
InvoCare Ltd.(a) |
4,432 | 37,716 | ||||||
736,420 | ||||||||
Diversified Financial Services – 1.1% | ||||||||
Ackermans & van Haaren NV |
454 | 78,126 | ||||||
Aker ASA, Class A(a) |
760 | 69,807 | ||||||
Banca Mediolanum SpA |
9,158 | 92,267 | ||||||
Banque Nationale de Belgique |
44 | 87,071 | ||||||
BFF Bank SpA(b) |
16,974 | 152,038 | ||||||
Burford Capital Ltd. |
3,373 | 34,653 | ||||||
Cerved Group SpA* |
2,271 | 27,280 | ||||||
Creades AB, Class A(a) |
18,920 | 263,032 | ||||||
ECN Capital Corp.(a) |
98,428 | 854,411 | ||||||
Element Fleet Management Corp.(a) |
14,568 | 158,073 | ||||||
Eurazeo SE |
1,664 | 156,075 | ||||||
EXOR NV |
2,816 | 265,593 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 187 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Financial Services – (continued) | ||||||||
Fuyo General Lease Co. Ltd. |
700 | $ | 45,367 | |||||
GRENKE AG |
495 | 19,310 | ||||||
Groupe Bruxelles Lambert SA |
2,616 | 303,493 | ||||||
HAL Trust |
1,025 | 179,113 | ||||||
Industrivarden AB, Class A(a) |
1,922 | 63,384 | ||||||
Industrivarden AB, Class C |
3,828 | 124,309 | ||||||
Investment AB Oresund(a) |
15,532 | 270,185 | ||||||
Investor AB, Class A |
8,368 | 193,423 | ||||||
Investor AB, Class B |
29,516 | 680,121 | ||||||
Japan Securities Finance Co. Ltd. |
17,600 | 133,978 | ||||||
KBC Ancora |
1,377 | 71,805 | ||||||
Kinnevik AB, Class B* (a) |
4,796 | 187,992 | ||||||
L E Lundbergforetagen AB, Class B |
1,348 | 77,629 | ||||||
M&G plc |
72,688 | 199,075 | ||||||
Mitsubishi HC Capital, Inc. |
33,229 | 166,109 | ||||||
Mizuho Leasing Co. Ltd. |
13,338 | 411,165 | ||||||
ORIX Corp. |
27,900 | 551,761 | ||||||
PEUGEOT INVEST |
308 | 42,986 | ||||||
Plus500 Ltd. |
46,156 | 832,928 | ||||||
Ricoh Leasing Co. Ltd. |
4,400 | 139,110 | ||||||
Sofina SA |
330 | 146,036 | ||||||
SRH NV* ‡ (d) |
2,857 | — | ||||||
Tokyo Century Corp. |
600 | 34,203 | ||||||
Wendel SE |
497 | 66,200 | ||||||
Zenkoku Hosho Co. Ltd.(a) |
1,600 | 77,176 | ||||||
7,255,284 | ||||||||
Diversified Telecommunication Services – 1.2% | ||||||||
ARTERIA Networks Corp. |
1,900 | 26,711 | ||||||
BCE, Inc.(a) |
3,652 | 187,704 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd.* |
52,780 | 66,225 | ||||||
BT Group plc* |
172,524 | 328,481 | ||||||
Cellnex Telecom SA(b) |
10,692 | 658,013 | ||||||
Chorus Ltd. |
13,585 | 61,930 | ||||||
Deutsche Telekom AG (Registered) |
77,396 | 1,440,050 | ||||||
Elisa OYJ |
1,820 | 109,901 | ||||||
Gamma Communications plc |
8,008 | 198,903 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
Helios Towers plc* (a) |
64,372 | $ | 136,239 | |||||
HKBN Ltd. |
51,500 | 61,834 | ||||||
HKT Trust & HKT Ltd. |
53,400 | 72,490 | ||||||
Infrastrutture Wireless Italiane SpA(b) |
5,179 | 57,273 | ||||||
Koninklijke KPN NV |
57,464 | 171,903 | ||||||
Nippon Telegraph & Telephone Corp. |
31,800 | 889,089 | ||||||
NOS SGPS SA(a) |
105,600 | 412,322 | ||||||
Orange SA |
40,612 | 443,428 | ||||||
PCCW Ltd. |
127,035 | 65,485 | ||||||
Singapore Telecommunications Ltd. |
167,200 | 309,974 | ||||||
Spark New Zealand Ltd. |
59,346 | 193,880 | ||||||
Swisscom AG (Registered) |
308 | 167,997 | ||||||
Telecom Italia SpA |
97,108 | 34,624 | ||||||
Telefonica SA(a) |
109,639 | 477,639 | ||||||
Telekom Austria AG* |
1,426 | 12,344 | ||||||
Telenor ASA(a) |
5,588 | 88,088 | ||||||
Telia Co. AB(a) |
64,504 | 253,818 | ||||||
Telstra Corp. Ltd. |
52,988 | 152,033 | ||||||
TELUS Corp. |
10,203 | 233,684 | ||||||
Uniti Group Ltd.* (a) |
66,616 | 203,643 | ||||||
7,515,705 | ||||||||
Electric Utilities – 1.3% | ||||||||
Acciona SA |
857 | 164,434 | ||||||
AusNet Services Ltd. |
46,020 | 85,377 | ||||||
BKW AG |
773 | 102,531 | ||||||
Chubu Electric Power Co., Inc. |
13,200 | 136,486 | ||||||
Chugoku Electric Power Co., Inc. (The)(a) |
4,206 | 34,858 | ||||||
CK Infrastructure Holdings Ltd. |
500 | 3,014 | ||||||
CLP Holdings Ltd. |
22,500 | 220,255 | ||||||
Contact Energy Ltd. |
20,140 | 117,900 | ||||||
EDP – Energias de Portugal SA |
32,564 | 184,052 | ||||||
Electricite de France SA(a) |
12,702 | 187,123 | ||||||
Elia Group SA/NV(a) |
794 | 92,713 | ||||||
Emera, Inc.(a) |
2,950 | 137,034 | ||||||
Endesa SA |
3,376 | 77,923 | ||||||
Enea SA* |
108,460 | 275,051 | ||||||
Enel SpA |
181,676 | 1,521,330 | ||||||
EVN AG |
2,240 | 63,251 | ||||||
Fortis, Inc.(a) |
6,132 | 272,528 |
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) | ||||||||
Electric Utilities – (continued) | ||||||||
Fortum OYJ |
9,900 | $ | 294,439 | |||||
Genesis Energy Ltd. |
14,326 | 33,423 | ||||||
HK Electric Investments & HK Electric Investments Ltd.(b) |
500 | 498 | ||||||
Hokkaido Electric Power Co., Inc.(a) |
59,700 | 247,648 | ||||||
Hokuriku Electric Power Co.(a) |
92,900 | 441,586 | ||||||
Hydro One Ltd.(b) |
8,976 | 214,126 | ||||||
Iberdrola SA |
99,182 | 1,172,461 | ||||||
Kansai Electric Power Co., Inc. (The) |
12,900 | 118,563 | ||||||
Kyushu Electric Power Co., Inc. |
4,400 | 30,986 | ||||||
Mercury NZ Ltd. |
17,270 | 75,824 | ||||||
Okinawa Electric Power Co., Inc. (The) |
18,370 | 225,225 | ||||||
Origin Energy Ltd. |
15,620 | 59,248 | ||||||
Orsted A/S(b) |
3,080 | 435,048 | ||||||
Power Assets Holdings Ltd. |
17,000 | 103,695 | ||||||
Red Electrica Corp. SA |
11,943 | 248,917 | ||||||
Romande Energie Holding SA (Registered) |
21 | 31,256 | ||||||
Shikoku Electric Power Co., Inc. |
4,200 | 27,331 | ||||||
Spark Infrastructure Group |
1,271 | 2,683 | ||||||
SSE plc |
18,034 | 406,275 | ||||||
Terna – Rete Elettrica Nazionale |
22,982 | 171,331 | ||||||
Tohoku Electric Power Co., Inc. |
10,900 | 70,643 | ||||||
Tokyo Electric Power Co. Holdings, Inc.* |
400 | 1,105 | ||||||
Trustpower Ltd. |
5,123 | 27,240 | ||||||
Verbund AG(a) |
1,385 | 144,411 | ||||||
8,259,822 | ||||||||
Electrical Equipment – 1.3% | ||||||||
ABB Ltd. (Registered) |
31,768 | 1,053,081 | ||||||
Alfen Beheer BV* (b) |
1,892 | 213,040 | ||||||
Ballard Power Systems, Inc.* (a) |
1,824 | 33,006 | ||||||
Daihen Corp. |
8,800 | 366,200 | ||||||
Fagerhult AB |
13,084 | 104,964 | ||||||
Fuji Electric Co. Ltd. |
4,500 | 219,031 | ||||||
Fujikura Ltd.* |
110,000 | 590,397 | ||||||
Huber + Suhner AG (Registered) |
867 | 77,235 |
Investments | Shares | Value | ||||||
Electrical Equipment – (continued) | ||||||||
ITM Power plc* (a) |
10,192 | $ | 68,317 | |||||
Legrand SA |
4,972 | 542,243 | ||||||
Mabuchi Motor Co. Ltd. |
2,000 | 68,757 | ||||||
Mitsubishi Electric Corp. |
32,700 | 437,338 | ||||||
NEL ASA* (a) |
12,688 | 26,743 | ||||||
Nexans SA |
1,218 | 122,136 | ||||||
Nidec Corp.(a) |
8,910 | 982,229 | ||||||
Nissin Electric Co. Ltd. |
1,200 | 14,797 | ||||||
Nitto Kogyo Corp. |
15,000 | 222,320 | ||||||
NKT A/S* |
2,904 | 140,132 | ||||||
Nordex SE* |
4,144 | 76,251 | ||||||
Prysmian SpA |
5,460 | 206,618 | ||||||
Schneider Electric SE |
10,076 | 1,736,241 | ||||||
Siemens Energy AG* |
3,564 | 102,369 | ||||||
Siemens Gamesa Renewable Energy SA* |
6,044 | 163,879 | ||||||
Signify NV(b) |
3,848 | 186,362 | ||||||
Somfy SA |
275 | 54,101 | ||||||
TKH Group NV, CVA |
2,194 | 125,071 | ||||||
Ushio, Inc. |
5,900 | 105,194 | ||||||
Vestas Wind Systems A/S |
14,740 | 638,133 | ||||||
8,676,185 | ||||||||
Electronic Equipment, Instruments & Components – 2.0% | ||||||||
Alps Alpine Co. Ltd.(a) |
948 | 9,229 | ||||||
ALSO Holding AG (Registered)* |
52 | 15,422 | ||||||
Amano Corp. |
2,600 | 64,051 | ||||||
Anritsu Corp.(a) |
500 | 8,266 | ||||||
Azbil Corp. |
3,000 | 127,604 | ||||||
Barco NV |
7,700 | 173,405 | ||||||
Canon Marketing Japan, Inc. |
3,700 | 73,075 | ||||||
Citizen Watch Co. Ltd.(a) |
136,800 | 593,870 | ||||||
Comet Holding AG (Registered) |
352 | 130,977 | ||||||
CONEXIO Corp. |
2,200 | 28,092 | ||||||
Daiwabo Holdings Co. Ltd. |
39,600 | 694,237 | ||||||
FIH Mobile Ltd.* (a) |
768,000 | 119,459 | ||||||
Fingerprint Cards AB, Class B* (a) |
10,108 | 24,209 | ||||||
FIT Hon Teng Ltd.* (a) (b) |
924,000 | 185,298 | ||||||
Halma plc |
8,140 | 330,497 | ||||||
Hamamatsu Photonics KK |
3,400 | 200,973 |
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) | ||||||||
Electronic Equipment, Instruments & Components
– (continued) |
||||||||
Hexagon AB, Class B |
49,368 | $ | 793,245 | |||||
Hirose Electric Co. Ltd. |
782 | 130,236 | ||||||
Horiba Ltd. |
800 | 52,199 | ||||||
Hosiden Corp.(a) |
13,200 | 138,570 | ||||||
Ibiden Co. Ltd. |
4,000 | 238,895 | ||||||
Inficon Holding AG (Registered) |
110 | 141,089 | ||||||
Iriso Electronics Co. Ltd. |
1,200 | 54,725 | ||||||
Japan Aviation Electronics Industry Ltd. |
2,044 | 33,754 | ||||||
Jenoptik AG |
2,585 | 98,959 | ||||||
Kaga Electronics Co. Ltd. |
8,900 | 243,916 | ||||||
Keyence Corp. |
3,300 | 1,982,749 | ||||||
Koa Corp. |
17,600 | 236,776 | ||||||
Kyocera Corp. |
5,300 | 309,331 | ||||||
Lagercrantz Group AB, Class B |
5,832 | 78,090 | ||||||
Landis+Gyr Group AG* (a) |
1,102 | 75,979 | ||||||
LEM Holding SA (Registered) |
27 | 65,598 | ||||||
Macnica Fuji Electronics Holdings, Inc. |
22,100 | 517,686 | ||||||
Meiko Electronics Co. Ltd. |
8,800 | 242,719 | ||||||
Murata Manufacturing Co. Ltd. |
10,700 | 811,989 | ||||||
Mycronic AB |
3,001 | 69,605 | ||||||
Nichicon Corp. |
7,600 | 71,651 | ||||||
Nippon Ceramic Co. Ltd. |
900 | 23,292 | ||||||
Nippon Signal Co. Ltd. |
10,300 | 88,795 | ||||||
Nissha Co. Ltd.(a) |
22,000 | 358,290 | ||||||
Nohmi Bosai Ltd.(a) |
15,700 | 286,531 | ||||||
Oki Electric Industry Co. Ltd. |
26,400 | 216,479 | ||||||
Omron Corp. |
4,300 | 409,919 | ||||||
Optex Group Co. Ltd. |
1,000 | 12,681 | ||||||
Oxford Instruments plc |
4,444 | 140,412 | ||||||
PAX Global Technology Ltd.(a) (d) |
308,000 | 213,805 | ||||||
Renishaw plc |
1,617 | 111,379 | ||||||
Restar Holdings Corp.(a) |
13,200 | 219,952 | ||||||
Shimadzu Corp. |
6,200 | 250,936 | ||||||
Siix Corp.(a) |
17,428 | 192,430 | ||||||
Spectris plc |
3,026 | 156,127 | ||||||
Taiyo Yuden Co. Ltd. |
2,500 | 126,069 | ||||||
TDK Corp. |
8,700 | 315,115 | ||||||
Topcon Corp. |
2,200 | 39,167 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components
– (continued) |
||||||||
Venture Corp. Ltd. |
4,500 | $ | 62,770 | |||||
VSTECS Holdings Ltd. |
356,000 | 337,280 | ||||||
Yokogawa Electric Corp. |
1,600 | 31,881 | ||||||
Yokowo Co. Ltd.(a) |
8,800 | 194,715 | ||||||
12,954,450 | ||||||||
Energy Equipment & Services – 0.3% | ||||||||
BW Offshore Ltd.(a) |
44,206 | 143,394 | ||||||
Drilling Co. of 1972 A/S (The)* |
3,256 | 116,800 | ||||||
John Wood Group plc* |
251,504 | 736,039 | ||||||
Modec, Inc. |
10,800 | 185,644 | ||||||
Ocean Yield ASA |
34,086 | 165,206 | ||||||
Odfjell Drilling Ltd.* |
32,516 | 82,181 | ||||||
Saipem SpA* (a) |
191,136 | 419,491 | ||||||
SBM Offshore NV |
5,113 | 80,826 | ||||||
Subsea 7 SA |
26 | 233 | ||||||
TechnipFMC plc* |
12,457 | 92,188 | ||||||
Vallourec SA* |
— | (e) | 1 | |||||
Worley Ltd. |
10,916 | 88,713 | ||||||
2,110,716 | ||||||||
Entertainment – 0.4% | ||||||||
Akatsuki, Inc.(a) |
4,400 | 119,623 | ||||||
Bollore SA |
12,858 | 74,548 | ||||||
Capcom Co. Ltd. |
5,200 | 139,548 | ||||||
CD Projekt SA |
1,193 | 52,033 | ||||||
CTS Eventim AG & Co. KGaA* |
1,375 | 100,024 | ||||||
Daiichikosho Co. Ltd. |
1,100 | 39,842 | ||||||
DeNA Co. Ltd. |
4,000 | 73,844 | ||||||
Embracer Group AB* (a) |
16,016 | 148,887 | ||||||
EVENT Hospitality and Entertainment Ltd.* |
2,282 | 28,144 | ||||||
IGG, Inc.(a) |
323,000 | 300,618 | ||||||
Kinepolis Group NV* (a) |
1,030 | 64,903 | ||||||
Koei Tecmo Holdings Co. Ltd. |
2,246 | 104,002 | ||||||
Konami Holdings Corp. |
2,200 | 120,781 | ||||||
Modern Times Group MTG AB, Class B* |
586 | 6,707 | ||||||
Nexon Co. Ltd.(a) |
9,200 | 155,801 | ||||||
Nintendo Co. Ltd. |
2,100 | 924,534 | ||||||
Paradox Interactive AB |
952 | 13,967 |
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) | ||||||||
Entertainment – (continued) | ||||||||
Shochiku Co. Ltd.* |
300 | $ | 32,598 | |||||
Square Enix Holdings Co. Ltd. |
1,800 | 98,347 | ||||||
Toei Animation Co. Ltd. |
200 | 31,046 | ||||||
Toho Co. Ltd. |
4,100 | 192,370 | ||||||
Ubisoft Entertainment SA* |
1,425 | 74,588 | ||||||
2,896,755 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.4% | ||||||||
Activia Properties, Inc.(a) |
15 | 61,434 | ||||||
Advance Residence Investment Corp. |
18 | 59,040 | ||||||
Aedifica SA |
1,039 | 138,635 | ||||||
AEON REIT Investment Corp. |
29 | 39,167 | ||||||
ALE Property Group(a) |
9,620 | 40,752 | ||||||
Allied Properties REIT |
1,540 | 53,137 | ||||||
alstria office REIT-AG |
6,756 | 126,345 | ||||||
Altarea SCA |
359 | 76,859 | ||||||
ARGAN SA |
5,808 | 729,934 | ||||||
Argosy Property Ltd. |
68,432 | 76,398 | ||||||
Artis REIT |
22,836 | 215,915 | ||||||
Ascendas REIT |
68,635 | 157,273 | ||||||
Ascott Residence Trust |
30,164 | 23,040 | ||||||
Assura plc |
57,957 | 57,915 | ||||||
Aventus Group |
20,768 | 53,348 | ||||||
Befimmo SA |
11,352 | 465,053 | ||||||
Big Yellow Group plc |
7,176 | 145,482 | ||||||
Boardwalk REIT |
616 | 26,532 | ||||||
British Land Co. plc (The) |
2,332 | 15,801 | ||||||
BWP Trust(a) |
12,444 | 39,630 | ||||||
Capital & Counties Properties plc |
43,340 | 98,024 | ||||||
CapitaLand China Trust |
3,414 | 3,089 | ||||||
CapitaLand Integrated Commercial Trust |
46,746 | 74,530 | ||||||
Carmila SA(a) |
18,907 | 286,630 | ||||||
CDL Hospitality Trusts |
36,800 | 32,747 | ||||||
Centuria Office REIT(a) |
160,732 | 290,949 | ||||||
Champion REIT |
24,000 | 12,619 | ||||||
Charter Hall Group |
5,096 | 66,332 | ||||||
Charter Hall Long Wale REIT |
3,940 | 14,382 | ||||||
Charter Hall Retail REIT |
25,935 | 79,867 | ||||||
Charter Hall Social Infrastructure REIT |
31 | 89 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Choice Properties REIT(a) |
3,957 | $ | 47,533 | |||||
Cofinimmo SA |
507 | 81,848 | ||||||
Comforia Residential REIT, Inc. |
34 | 98,996 | ||||||
Cominar REIT |
45,255 | 421,681 | ||||||
Covivio |
1,449 | 125,429 | ||||||
Cromwell European REIT(b) |
23,174 | 71,067 | ||||||
Cromwell Property Group |
48,403 | 29,448 | ||||||
Daiwa House REIT Investment Corp. |
42 | 120,447 | ||||||
Daiwa Securities Living Investments Corp. |
26 | 26,222 | ||||||
Derwent London plc |
1,508 | 69,909 | ||||||
Dexus |
8,888 | 72,566 | ||||||
Dream Office REIT(a) |
3,966 | 74,709 | ||||||
ESR-REIT |
1,044,000 | 371,613 | ||||||
Far East Hospitality Trust |
53,976 | 25,817 | ||||||
First Capital REIT(a) |
1,819 | 25,945 | ||||||
Fortune REIT |
48,000 | 49,795 | ||||||
Frasers Centrepoint Trust |
33,249 | 59,422 | ||||||
Frasers Hospitality Trust |
39,200 | 13,953 | ||||||
Frasers Logistics & Commercial Trust(b) |
4,239 | 4,778 | ||||||
Frontier Real Estate Investment Corp.(a) |
12 | 53,041 | ||||||
Fukuoka REIT Corp. |
26 | 38,558 | ||||||
GCP Student Living plc |
55,216 | 159,322 | ||||||
Gecina SA |
1,496 | 209,567 | ||||||
Global One Real Estate Investment Corp. |
48 | 49,379 | ||||||
GLP J-REIT |
74 | 120,645 | ||||||
Goodman Group |
30,052 | 494,328 | ||||||
Goodman Property Trust |
19,085 | 33,941 | ||||||
GPT Group (The) |
41,404 | 160,468 | ||||||
Granite REIT(a) |
1,072 | 86,760 | ||||||
Great Portland Estates plc |
14,916 | 149,666 | ||||||
Growthpoint Properties Australia Ltd. |
19,121 | 59,601 | ||||||
H&R REIT(a) |
5,632 | 77,286 | ||||||
Hamborner REIT AG |
6,058 | 68,010 | ||||||
Hammerson plc(a) |
400,796 | 176,684 | ||||||
Hankyu Hanshin REIT, Inc. |
26 | 38,376 | ||||||
Heiwa Real Estate REIT, Inc. |
87 | 121,392 | ||||||
Hibernia REIT plc |
34,222 | 49,900 |
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) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Hoshino Resorts REIT, Inc.(a) |
24 | $ | 156,387 | |||||
Hulic Reit, Inc. |
23 | 34,795 | ||||||
ICADE |
158 | 12,397 | ||||||
Ichigo
Office REIT Investment |
40 | 30,274 | ||||||
Ingenia Communities Group |
35,948 | 175,774 | ||||||
Inmobiliaria Colonial Socimi SA |
7,185 | 69,928 | ||||||
InterRent REIT(a) |
28,380 | 415,094 | ||||||
Invesco Office J-Reit, Inc.(a) |
968 | 192,539 | ||||||
Invincible Investment Corp. |
121 | 47,753 | ||||||
Irongate Group |
263,164 | 317,248 | ||||||
Japan Hotel REIT Investment Corp. |
77 | 46,460 | ||||||
Japan Logistics Fund, Inc. |
19 | 56,738 | ||||||
Japan Metropolitan Fund Invest |
147 | 134,720 | ||||||
Japan
Prime Realty Investment |
25 | 91,537 | ||||||
Japan Real Estate Investment Corp. |
24 | 146,915 | ||||||
Kenedix Office Investment Corp.(a) |
9 | 56,909 | ||||||
Kenedix Residential Next Investment Corp. |
34 | 65,361 | ||||||
Kenedix Retail REIT Corp. |
31 | 79,005 | ||||||
Keppel DC REIT |
47,500 | 84,186 | ||||||
Keppel Pacific Oak US REIT(b) |
154,000 | 122,430 | ||||||
Keppel REIT |
80,733 | 67,652 | ||||||
Kiwi Property Group Ltd. |
3,973 | 3,327 | ||||||
Klepierre SA |
1,540 | 36,641 | ||||||
Land Securities Group plc |
8,228 | 77,484 | ||||||
LaSalle Logiport REIT |
44 | 73,163 | ||||||
Link REIT |
37,500 | 332,624 | ||||||
LondonMetric Property plc |
31,861 | 114,162 | ||||||
LXI REIT plc(b) |
81,418 | 163,834 | ||||||
Mapletree Commercial Trust |
34,368 | 55,560 | ||||||
Mapletree Industrial Trust |
35,086 | 71,551 | ||||||
Mapletree Logistics Trust |
73,207 | 109,661 | ||||||
Mapletree North Asia Commercial Trust(b) |
49,500 | 37,442 | ||||||
Merlin Properties Socimi SA |
2,992 | 32,437 | ||||||
Mirvac Group |
45,364 | 96,086 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Mori Hills REIT Investment Corp. |
16 | $ | 21,665 | |||||
National Storage REIT |
83,662 | 150,184 | ||||||
Nippon Accommodations Fund, Inc. |
8 | 44,552 | ||||||
Nippon Building Fund, Inc.(a) |
17 | 110,327 | ||||||
Nippon Prologis REIT, Inc. |
41 | 136,816 | ||||||
NIPPON REIT Investment Corp. |
23 | 88,349 | ||||||
Nomura Real Estate Master Fund, Inc. |
51 | 76,349 | ||||||
NTT UD REIT Investment Corp.(a) |
67 | 88,961 | ||||||
One REIT, Inc. |
14 | 37,509 | ||||||
Orix JREIT, Inc. |
49 | 81,176 | ||||||
OUE Commercial REIT |
2,977 | 993 | ||||||
Parkway Life REIT |
12,500 | 43,196 | ||||||
Precinct Properties New Zealand Ltd. |
22,735 | 27,171 | ||||||
Primary Health Properties plc |
6,239 | 13,136 | ||||||
Property for Industry Ltd.(a) |
26,697 | 56,266 | ||||||
Reit 1 Ltd. |
27,148 | 170,102 | ||||||
Retail Estates NV |
3,784 | 303,029 | ||||||
Safestore Holdings plc |
6,952 | 114,544 | ||||||
Sasseur REIT(b) |
277,200 | 174,727 | ||||||
Scentre Group |
43,560 | 98,808 | ||||||
Secure Income REIT plc |
14,030 | 78,657 | ||||||
Segro plc |
19,096 | 338,323 | ||||||
Sekisui House Reit, Inc.(a) |
55 | 41,579 | ||||||
Shaftesbury plc(a) |
14,432 | 123,543 | ||||||
Shopping Centres Australasia Property Group(a) |
54,215 | 113,204 | ||||||
SPH REIT(d) |
44,800 | 32,392 | ||||||
Star Asia Investment Corp. |
156 | 82,635 | ||||||
Starhill Global REIT |
542,296 | 259,385 | ||||||
Stockland |
57,904 | 197,887 | ||||||
Summit Industrial Income REIT |
10,032 | 191,325 | ||||||
Sunlight REIT |
55,000 | 31,816 | ||||||
Suntec REIT |
3,900 | 4,309 | ||||||
Tokyu REIT, Inc. |
21 | 35,195 | ||||||
Tritax Big Box REIT plc |
47,975 | 147,964 | ||||||
UK Commercial Property REIT Ltd. |
18,880 | 19,669 | ||||||
Unibail-Rodamco-Westfield* (a) |
3,124 | 223,459 | ||||||
Unibail-Rodamco-Westfield* |
880 | 62,946 |
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) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Unibail-Rodamco-Westfield, CHDI* |
5 | $ | 18 | |||||
UNITE Group plc (The) |
9,194 | 137,180 | ||||||
United Urban Investment Corp. |
84 | 104,609 | ||||||
Vicinity Centres |
65,692 | 85,114 | ||||||
Vital Healthcare Property Trust |
46,210 | 96,896 | ||||||
Warehouses De Pauw CVA |
4,323 | 197,110 | ||||||
Waypoint REIT |
46,112 | 94,553 | ||||||
Workspace Group plc |
8,954 | 100,890 | ||||||
15,745,642 | ||||||||
Food & Staples Retailing – 1.7% | ||||||||
Aeon Co. Ltd. |
14,713 | 337,809 | ||||||
Ain Holdings, Inc.(a) |
800 | 47,077 | ||||||
Alimentation Couche-Tard, Inc.(a) |
608 | 23,103 | ||||||
Alimentation Couche-Tard, Inc., Class B |
12,408 | 464,668 | ||||||
Arcs Co. Ltd.(a) |
24,818 | 476,445 | ||||||
Axfood AB |
3,184 | 78,038 | ||||||
Axial Retailing, Inc. |
8,800 | 279,377 | ||||||
Belc Co. Ltd. |
800 | 39,430 | ||||||
Carrefour SA |
10,949 | 198,360 | ||||||
Cawachi Ltd. |
1,000 | 19,461 | ||||||
Coles Group Ltd. |
14,872 | 191,460 | ||||||
Cosmos Pharmaceutical Corp.(a) |
200 | 30,467 | ||||||
Create SD Holdings Co. Ltd.(a) |
2,000 | 61,390 | ||||||
Daikokutenbussan Co. Ltd. |
400 | 22,732 | ||||||
Dairy Farm International Holdings Ltd. |
7,600 | 27,132 | ||||||
Empire Co. Ltd., Class A |
1,666 | 49,729 | ||||||
Etablissements Franz Colruyt NV |
1,044 | 51,275 | ||||||
Fuji Co. Ltd.(a) |
13,200 | 232,107 | ||||||
George Weston Ltd. |
1,559 | 168,182 | ||||||
GrainCorp Ltd., Class A |
10,837 | 51,117 | ||||||
Heiwado Co. Ltd. |
18,800 | 324,311 | ||||||
ICA Gruppen AB |
1,916 | 99,052 | ||||||
Inageya Co. Ltd. |
2,398 | 28,917 | ||||||
Itochu-Shokuhin Co. Ltd. |
400 | 18,452 | ||||||
J Sainsbury plc |
65,796 | 270,028 | ||||||
Jeronimo Martins SGPS SA |
988 | 22,410 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
JM Holdings Co. Ltd.(a) |
8,800 | $ | 144,165 | |||||
Kato Sangyo Co. Ltd. |
10,200 | 286,700 | ||||||
Kesko OYJ, Class A |
2,248 | 68,680 | ||||||
Kesko OYJ, Class B |
6,424 | 208,826 | ||||||
Kobe Bussan Co. Ltd.(a) |
3,200 | 109,871 | ||||||
Koninklijke Ahold Delhaize NV |
25,960 | 845,087 | ||||||
Kusuri no Aoki Holdings Co. Ltd.(a) |
600 | 39,833 | ||||||
Loblaw Cos. Ltd. |
2,640 | 198,242 | ||||||
MARR SpA |
1,155 | 27,214 | ||||||
MatsukiyoCocokara & Co. |
3,600 | 158,807 | ||||||
Maxvalu Tokai Co. Ltd. |
2,400 | 54,935 | ||||||
Metcash Ltd.(a) |
43,474 | 132,899 | ||||||
Metro, Inc.(a) |
4,532 | 227,669 | ||||||
Nihon Chouzai Co. Ltd. |
1,600 | 22,998 | ||||||
North West Co., Inc. (The)(a) |
22,132 | 600,459 | ||||||
Ocado Group plc* |
10,340 | 255,549 | ||||||
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. |
4,379 | 330,140 | ||||||
San-A Co. Ltd. |
8,800 | 316,036 | ||||||
Seven & i Holdings Co. Ltd. |
17,900 | 750,693 | ||||||
Sheng Siong Group Ltd. |
51,500 | 54,231 | ||||||
Shufersal Ltd. |
3,578 | 29,650 | ||||||
Sligro Food Group NV* (a) |
4,620 | 123,771 | ||||||
Sonae SGPS SA |
301,268 | 331,733 | ||||||
Sugi Holdings Co. Ltd. |
800 | 57,251 | ||||||
Sundrug Co. Ltd. |
1,600 | 46,797 | ||||||
Tesco plc |
178,592 | 660,729 | ||||||
Tsuruha Holdings, Inc. |
900 | 110,897 | ||||||
United Super Markets Holdings, Inc. |
2,000 | 18,224 | ||||||
Valor Holdings Co. Ltd. |
16,000 | 338,031 | ||||||
Welcia Holdings Co. Ltd. |
3,600 | 134,339 | ||||||
Woolworths Group Ltd. |
19,272 | 551,216 | ||||||
Zur Rose Group AG* (a) |
260 | 92,476 | ||||||
10,940,677 | ||||||||
Food Products – 3.0% | ||||||||
a2 Milk Co. Ltd. (The)* (a) |
12,579 | 59,144 | ||||||
AAK AB |
5,004 | 109,361 | ||||||
Agrana Beteiligungs AG |
6,028 | 127,241 | ||||||
Ajinomoto Co., Inc. |
8,100 | 241,952 | ||||||
Ariake Japan Co. Ltd. |
800 | 51,918 |
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) | ||||||||
Food Products – (continued) | ||||||||
Associated British Foods plc |
2,992 | $ | 73,331 | |||||
Austevoll Seafood ASA |
8,913 | 120,220 | ||||||
Bakkafrost P/F |
1,281 | 118,146 | ||||||
Bakkavor Group plc(a) (b) |
109,164 | 189,141 | ||||||
Barry Callebaut AG (Registered) |
38 | 88,081 | ||||||
Bega Cheese Ltd. |
8,671 | 35,299 | ||||||
Bell Food Group AG (Registered) |
1,100 | 353,926 | ||||||
Bonduelle SCA |
2,860 | 73,311 | ||||||
Calbee, Inc. |
3,200 | 82,368 | ||||||
Chocoladefabriken Lindt & Spruengli AG |
24 | 283,404 | ||||||
Chocoladefabriken Lindt & Spruengli AG (Registered) |
3 | 360,821 | ||||||
Costa Group Holdings Ltd.(a) |
16,050 | 35,201 | ||||||
Danone SA |
10,208 | 665,674 | ||||||
DyDo Group Holdings, Inc. |
500 | 23,767 | ||||||
Ebro Foods SA |
1,618 | 32,131 | ||||||
Elders Ltd. |
1,508 | 13,626 | ||||||
Emmi AG (Registered) |
41 | 42,828 | ||||||
First Pacific Co. Ltd. |
704,000 | 281,453 | ||||||
First Resources Ltd. |
5,100 | 6,732 | ||||||
Fraser and Neave Ltd. |
154,000 | 165,591 | ||||||
Fuji Oil Holdings, Inc. |
3,400 | 79,704 | ||||||
Fujicco Co. Ltd.(a) |
2,000 | 33,519 | ||||||
Fujiya Co. Ltd. |
400 | 8,261 | ||||||
Glanbia plc |
7,586 | 124,046 | ||||||
Golden Agri-Resources Ltd. |
213,400 | 41,936 | ||||||
Grieg Seafood ASA* (a) |
3,299 | 36,600 | ||||||
House Foods Group, Inc. |
2,400 | 68,722 | ||||||
Inghams Group Ltd.(a) |
151,800 | 423,003 | ||||||
Itoham Yonekyu Holdings, Inc. |
2,100 | 12,763 | ||||||
Japfa Ltd. |
201,820 | 102,519 | ||||||
J-Oil Mills, Inc. |
4,400 | 70,770 | ||||||
Kagome Co. Ltd. |
900 | 22,811 | ||||||
Kameda Seika Co. Ltd. |
900 | 35,163 | ||||||
Kernel Holding SA |
26,180 | 395,328 | ||||||
Kerry Group plc, Class A(a) |
2,244 | 301,497 | ||||||
Kikkoman Corp. |
4,000 | 326,946 | ||||||
Kotobuki Spirits Co. Ltd. |
1,000 | 66,652 | ||||||
Leroy Seafood Group ASA |
11,649 | 105,759 | ||||||
Lotus Bakeries NV |
13 | 86,354 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Maple Leaf Foods, Inc. |
301 | $ | 6,552 | |||||
Maruha Nichiro Corp.(a) |
17,600 | 396,376 | ||||||
Megmilk Snow Brand Co. Ltd. |
22,000 | 425,433 | ||||||
Mehadrin Ltd.* |
— | (e) | 20 | |||||
MEIJI Holdings Co. Ltd.(a) |
1,600 | 100,890 | ||||||
Morinaga & Co. Ltd. |
1,100 | 38,781 | ||||||
Morinaga Milk Industry Co. Ltd. |
1,200 | 70,300 | ||||||
Mowi ASA |
9,988 | 288,802 | ||||||
Nestle SA (Registered) |
46,464 | 6,143,672 | ||||||
Neto Malinda Trading Ltd.* |
2,288 | 71,390 | ||||||
NH Foods Ltd.(a) |
4,400 | 154,545 | ||||||
Nichirei Corp. |
3,500 | 85,332 | ||||||
Nippn Corp. |
32,300 | 462,015 | ||||||
Nippon Suisan Kaisha Ltd. |
132,000 | 748,994 | ||||||
Nisshin Oillio Group Ltd. (The) |
9,900 | 262,206 | ||||||
Nisshin Seifun Group, Inc. |
7,090 | 111,861 | ||||||
Nissin Foods Holdings Co. Ltd. |
1,500 | 114,580 | ||||||
Norway Royal Salmon ASA |
2,678 | 56,160 | ||||||
Orkla ASA |
13,798 | 134,012 | ||||||
Premier Foods plc |
280,104 | 421,580 | ||||||
Premium Brands Holdings Corp. |
1,100 | 118,692 | ||||||
Riken Vitamin Co. Ltd.(a) |
13,600 | 222,681 | ||||||
S Foods, Inc. |
8,800 | 253,909 | ||||||
S&B Foods, Inc. |
4,400 | 171,138 | ||||||
Sakata Seed Corp. |
2,800 | 84,227 | ||||||
Salmar ASA |
52 | 3,953 | ||||||
Saputo, Inc. |
4,455 | 106,240 | ||||||
Savencia SA |
1,716 | 127,094 | ||||||
Schouw & Co. A/S |
5,896 | 574,159 | ||||||
Showa Sangyo Co. Ltd.(a) |
13,200 | 327,960 | ||||||
Societe LDC SA |
1,734 | 195,851 | ||||||
Strauss Group Ltd. |
952 | 28,025 | ||||||
Suedzucker AG |
1,979 | 31,422 | ||||||
SunOpta, Inc.* |
5,588 | 43,278 | ||||||
Synlait Milk Ltd.* (a) |
1,760 | 4,534 | ||||||
Tassal Group Ltd.(a) |
119,771 | 319,358 | ||||||
Tate & Lyle plc |
3,262 | 28,984 | ||||||
Toyo Suisan Kaisha Ltd. |
2,800 | 120,570 | ||||||
Vilmorin & Cie SA |
1,612 | 102,602 | ||||||
Viscofan SA |
825 | 56,472 | ||||||
Vitasoy
International Holdings |
16,000 | 38,503 |
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) | ||||||||
Food Products – (continued) | ||||||||
WH Group Ltd.(b) |
154,000 | $ | 108,090 | |||||
Wilmar International Ltd. |
74,800 | 239,626 | ||||||
Yakult Honsha Co. Ltd. |
1,700 | 85,578 | ||||||
Yamazaki Baking Co. Ltd. |
2,900 | 43,999 | ||||||
19,507,466 | ||||||||
Gas Utilities – 0.3% | ||||||||
AltaGas Ltd.(a) |
6,799 | 140,527 | ||||||
APA Group |
16,324 | 100,540 | ||||||
Enagas SA |
5,500 | 123,510 | ||||||
Hong Kong & China Gas Co. Ltd. |
158,907 | 247,174 | ||||||
Keppel Infrastructure Trust |
170,047 | 66,833 | ||||||
Naturgy Energy Group SA(a) |
6,820 | 179,395 | ||||||
Nippon Gas Co. Ltd. |
6,000 | 74,142 | ||||||
Osaka Gas Co. Ltd. |
14,500 | 233,475 | ||||||
Rubis SCA |
2,784 | 89,211 | ||||||
Saibu Gas Holdings Co. Ltd.(a) |
3,600 | 73,373 | ||||||
Shizuoka Gas Co. Ltd.(a) |
26,400 | 277,834 | ||||||
Snam SpA |
23,751 | 134,598 | ||||||
Superior Plus Corp.(a) |
14,520 | 161,301 | ||||||
Toho Gas Co. Ltd. |
2,000 | 59,110 | ||||||
Tokyo Gas Co. Ltd. |
6,800 | 118,020 | ||||||
2,079,043 | ||||||||
Health Care Equipment & Supplies – 1.3% | ||||||||
Alcon, Inc. |
7,832 | 648,503 | ||||||
Ambu A/S, Class B(a) |
3,172 | 90,447 | ||||||
Ansell Ltd. |
52 | 1,231 | ||||||
Arjo AB, Class B |
4,131 | 56,276 | ||||||
Asahi Intecc Co. Ltd. |
3,200 | 84,164 | ||||||
BioMerieux |
825 | 105,068 | ||||||
Carl Zeiss Meditec AG |
715 | 143,932 | ||||||
Cochlear Ltd. |
886 | 146,697 | ||||||
Coloplast A/S, Class B |
1,496 | 244,122 | ||||||
ConvaTec Group plc(b) |
5,396 | 15,814 | ||||||
CYBERDYNE, Inc.* (a) |
4,500 | 15,668 | ||||||
Demant A/S* |
2,922 | 141,683 | ||||||
DiaSorin SpA |
293 | 66,238 | ||||||
Draegerwerk AG & Co. KGaA |
1,496 | 111,665 | ||||||
Draegerwerk AG & Co. KGaA (Preference) |
2,816 | 221,925 |
Investments | Shares | Value | ||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Eckert & Ziegler Strahlen- und Medizintechnik AG |
1,408 | $ | 211,008 | |||||
Eiken Chemical Co. Ltd. |
1,600 | 26,801 | ||||||
Elekta AB, Class B |
6,069 | 70,466 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. |
10,847 | 242,273 | ||||||
Getinge AB, Class B |
3,120 | 139,607 | ||||||
GN Store Nord A/S |
2,064 | 125,381 | ||||||
Hogy Medical Co. Ltd. |
1,200 | 32,782 | ||||||
Hoya Corp. |
6,800 | 997,413 | ||||||
Japan Lifeline Co. Ltd. |
3,000 | 32,230 | ||||||
Koninklijke Philips NV |
14,785 | 696,802 | ||||||
Mani, Inc. |
3,900 | 66,354 | ||||||
Menicon Co. Ltd. |
3,200 | 120,114 | ||||||
Nagaileben Co. Ltd. |
1,500 | 30,757 | ||||||
Nakanishi, Inc. |
5,100 | 118,079 | ||||||
Nanosonics Ltd.* |
16,777 | 74,599 | ||||||
Nihon Kohden Corp. |
2,300 | 73,120 | ||||||
Nipro Corp. |
5,200 | 52,718 | ||||||
Olympus Corp. |
22,000 | 474,729 | ||||||
Paramount Bed Holdings Co. Ltd. |
1,600 | 29,790 | ||||||
PolyNovo Ltd.* (a) |
32,604 | 44,570 | ||||||
Revenio Group OYJ |
1,760 | 116,401 | ||||||
Sartorius AG (Preference) |
524 | 339,826 | ||||||
Siemens Healthineers AG(b) |
5,896 | 392,058 | ||||||
Smith & Nephew plc |
15,444 | 265,682 | ||||||
Sonova Holding AG (Registered) |
842 | 348,595 | ||||||
Straumann Holding AG (Registered) |
187 | 389,247 | ||||||
Sysmex Corp. |
2,400 | 296,146 | ||||||
Terumo Corp. |
11,800 | 519,293 | ||||||
Ypsomed Holding AG (Registered) |
81 | 13,474 | ||||||
8,433,748 | ||||||||
Health Care Providers & Services – 0.6% | ||||||||
AEVIS VICTORIA SA* |
7,323 | 100,578 | ||||||
Alfresa Holdings Corp. |
1,100 | 15,435 | ||||||
Ambea AB(b) |
21,007 | 146,023 | ||||||
Amplifon SpA |
3,067 | 155,991 | ||||||
As One Corp. |
700 | 95,523 | ||||||
BML, Inc. |
12,100 | 423,938 | ||||||
CareTech Holdings plc |
47,696 | 407,967 |
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) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
Chartwell Retirement Residences(a) |
5,472 | $ | 52,709 | |||||
China Evergrande New Energy Vehicle Group Ltd.* (a) |
40,000 | 19,231 | ||||||
CVS Group plc* |
5,896 | 201,644 | ||||||
EBOS Group Ltd. |
2,014 | 52,248 | ||||||
Fagron |
2,504 | 43,408 | ||||||
Fresenius Medical Care AG & Co. KGaA |
2,728 | 181,400 | ||||||
Fresenius SE & Co. KGaA |
8,052 | 365,878 | ||||||
Galenica AG(b) |
132 | 9,679 | ||||||
Healius Ltd. |
27,458 | 99,406 | ||||||
Korian SA |
2,669 | 88,954 | ||||||
Mediclinic International plc* |
22,600 | 103,470 | ||||||
Medipal Holdings Corp. |
700 | 12,616 | ||||||
NMC Health plc* (d) |
2,074 | 591 | ||||||
Orpea SA |
950 | 99,165 | ||||||
Raffles Medical Group Ltd. |
4,124 | 4,190 | ||||||
Ramsay Health Care Ltd. |
2,240 | 118,479 | ||||||
Ryman Healthcare Ltd.(a) |
2,860 | 29,576 | ||||||
Ship Healthcare Holdings, Inc. |
1,800 | 47,153 | ||||||
Sonic Healthcare Ltd. |
9,467 | 284,640 | ||||||
Summerset Group Holdings Ltd. |
11,645 | 120,923 | ||||||
Suzuken Co. Ltd. |
3,380 | 93,671 | ||||||
Toho Holdings Co. Ltd.(a) |
30,600 | 492,981 | ||||||
3,867,467 | ||||||||
Health Care Technology – 0.1% | ||||||||
AGFA-Gevaert NV* |
15,224 | 66,244 | ||||||
CompuGroup Medical SE & Co. KGaA |
624 | 52,209 | ||||||
M3, Inc. |
6,800 | 400,039 | ||||||
Sectra AB* (a) |
5,149 | 539 | ||||||
Sectra AB, Class B* (a) |
5,149 | 125,660 | ||||||
644,691 | ||||||||
Hotels, Restaurants & Leisure – 1.4% | ||||||||
888 Holdings plc |
32,824 | 172,235 | ||||||
Accor SA* |
792 | 28,330 | ||||||
Arcland Service Holdings Co. Ltd. |
1,400 | 27,687 | ||||||
Aristocrat Leisure Ltd. |
9,366 | 328,385 | ||||||
Atom Corp.* (a) |
5,800 | 39,065 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Autogrill SpA* (a) |
24,905 | $ | 195,293 | |||||
Basic-Fit NV* (b) |
1,196 | 58,131 | ||||||
Betsson AB, Class B* |
46,024 | 320,456 | ||||||
Colowide Co. Ltd.(a) |
3,500 | 50,585 | ||||||
Compass Group plc* |
30,272 | 643,178 | ||||||
Corporate Travel Management Ltd.* (a) |
3,366 | 61,916 | ||||||
Create Restaurants Holdings, Inc.(a) |
4,400 | 30,214 | ||||||
Crown Resorts Ltd.* |
11,014 | 82,395 | ||||||
Domino’s Pizza Enterprises Ltd. |
1,398 | 142,238 | ||||||
Domino’s Pizza Group plc |
15,345 | 81,402 | ||||||
Doutor Nichires Holdings Co. Ltd. |
7,100 | 101,620 | ||||||
Elior Group SA* (a) (b) |
7,543 | 59,533 | ||||||
Entain plc* |
12,408 | 348,329 | ||||||
Evolution AB(b) |
2,640 | 427,023 | ||||||
Flutter Entertainment plc* |
1,493 | 282,319 | ||||||
Flutter Entertainment plc – XDUB* (a) |
1,008 | 190,841 | ||||||
Fuji Kyuko Co. Ltd. |
1,000 | 40,167 | ||||||
Galaxy Entertainment Group Ltd.* |
36,000 | 194,831 | ||||||
Genting Singapore Ltd. |
20,800 | 12,031 | ||||||
Greggs plc |
3,864 | 161,810 | ||||||
Hiday Hidaka Corp. |
2,191 | 31,244 | ||||||
HIS Co. Ltd.* (a) |
22,800 | 511,688 | ||||||
Ichibanya Co. Ltd. |
1,000 | 40,386 | ||||||
InterContinental Hotels Group plc* |
4,532 | 317,942 | ||||||
J D Wetherspoon plc* |
3,795 | 53,216 | ||||||
Kindred Group plc, SDR |
7,392 | 103,282 | ||||||
Kisoji Co. Ltd.(a) |
1,700 | 31,890 | ||||||
KOMEDA Holdings Co. Ltd. |
1,200 | 21,711 | ||||||
Kyoritsu Maintenance Co. Ltd.(a) |
1,600 | 59,776 | ||||||
La Francaise des Jeux SAEM(b) |
3,300 | 171,470 | ||||||
Mandarin Oriental International Ltd.* |
8,000 | 18,560 | ||||||
McDonald’s Holdings Co. Japan Ltd.(a) |
1,100 | 49,103 | ||||||
Melco International Development Ltd.* (a) |
21,000 | 27,428 | ||||||
MGM China Holdings Ltd.* (a) |
32,400 | 23,866 | ||||||
Miramar Hotel & Investment |
44,000 | 73,757 |
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) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Mitchells & Butlers plc* |
38,104 | $ | 132,249 | |||||
MOS Food Services, Inc.(a) |
2,100 | 58,382 | ||||||
NagaCorp Ltd.(a) |
90,000 | 82,722 | ||||||
Ohsho Food Service Corp. |
1,504 | 78,745 | ||||||
Oriental Land Co. Ltd.(a) |
3,900 | 613,602 | ||||||
Pandox AB* |
5,720 | 100,833 | ||||||
Penn National Gaming, Inc.* |
220 | 15,752 | ||||||
Playtech plc* |
33,220 | 316,933 | ||||||
Plenus Co. Ltd. |
5,400 | 91,733 | ||||||
PointsBet Holdings Ltd.* |
13,297 | 82,396 | ||||||
Restaurant Brands International, Inc. |
4,048 | 228,828 | ||||||
Restaurant Brands New Zealand Ltd.* (a) |
1,154 | 12,867 | ||||||
Restaurant Group plc (The)* |
101,062 | 122,323 | ||||||
Ringer Hut Co. Ltd.* (a) |
1,700 | 32,934 | ||||||
Round One Corp. |
5,100 | 61,142 | ||||||
Royal Holdings Co. Ltd.* |
1,600 | 29,004 | ||||||
Saizeriya Co. Ltd. |
1,800 | 48,463 | ||||||
Sands China Ltd.* |
22,800 | 52,112 | ||||||
Scandic Hotels Group AB* (a) (b) |
29,480 | 142,105 | ||||||
Shangri-La Asia Ltd.* (a) |
32,000 | 26,080 | ||||||
SJM Holdings Ltd.* (a) |
76,000 | 56,763 | ||||||
SkiStar AB* |
2,828 | 58,941 | ||||||
Skylark Holdings Co. Ltd.* |
3,700 | 50,069 | ||||||
Sodexo SA* |
988 | 96,043 | ||||||
SSP Group plc* |
35,420 | 125,021 | ||||||
Star Entertainment Grp Ltd. (The)* (a) |
11,421 | 31,397 | ||||||
Tabcorp Holdings Ltd. |
44,620 | 166,230 | ||||||
Toridoll Holdings Corp. |
3,200 | 76,924 | ||||||
TUI AG, DI* |
2,728 | 9,173 | ||||||
Webjet Ltd.* |
39,908 | 189,441 | ||||||
Whitbread plc* |
5,500 | 246,529 | ||||||
Wynn Macau Ltd.* (a) |
12,800 | 11,518 | ||||||
Yoshinoya Holdings Co. Ltd. |
4,900 | 95,357 | ||||||
Zensho Holdings Co. Ltd.(a) |
3,600 | 82,971 | ||||||
9,240,915 | ||||||||
Household Durables – 1.4% | ||||||||
Azorim-Investment Development & Construction Co. Ltd.* |
4,285 | 19,166 |
Investments | Shares | Value | ||||||
Household Durables – (continued) | ||||||||
Barratt Developments plc |
28,996 | $ | 263,518 | |||||
Bellway plc |
3,680 | 167,120 | ||||||
Berkeley Group Holdings plc |
1,345 | 80,268 | ||||||
Bonava AB, Class B |
32,392 | 319,639 | ||||||
Breville Group Ltd. |
4,514 | 99,374 | ||||||
Cairn Homes plc(a) |
38,456 | 49,972 | ||||||
Casio Computer Co. Ltd.(a) |
3,600 | 50,705 | ||||||
Countryside Properties plc* (b) |
13,624 | 87,848 | ||||||
Crest Nicholson Holdings plc |
12,364 | 60,335 | ||||||
De’ Longhi SpA |
2,352 | 91,999 | ||||||
DFS Furniture plc* |
105,952 | 396,488 | ||||||
Dom Development SA |
5,544 | 186,346 | ||||||
Electra Consumer Products 1970 Ltd. |
4,888 | 229,470 | ||||||
Electrolux AB, Class B(a) |
7,237 | 164,230 | ||||||
Fiskars OYJ Abp |
574 | 14,116 | ||||||
Forbo Holding AG (Registered) |
24 | 46,700 | ||||||
Fujitsu General Ltd. |
2,100 | 51,494 | ||||||
Haseko Corp. |
3,500 | 45,459 | ||||||
Husqvarna AB, Class B |
10,433 | 148,383 | ||||||
Iida Group Holdings Co. Ltd. |
5,400 | 132,745 | ||||||
JM AB |
1,842 | 74,529 | ||||||
Kaufman & Broad SA(a) |
6,468 | 258,984 | ||||||
Man Wah Holdings Ltd. |
54,400 | 84,617 | ||||||
Nagawa Co. Ltd.(a) |
500 | 47,270 | ||||||
Neinor Homes SA* (a) (b) |
16,280 | 209,878 | ||||||
Nikon Corp. |
1,400 | 15,335 | ||||||
Nobia AB |
53,372 | 328,429 | ||||||
Open House Co. Ltd. |
1,800 | 113,975 | ||||||
Panasonic Corp. |
52,800 | 644,806 | ||||||
Persimmon plc |
7,436 | 277,349 | ||||||
Pressance Corp.(a) |
13,200 | 217,868 | ||||||
Redrow plc |
16,632 | 147,095 | ||||||
Rinnai Corp. |
100 | 10,226 | ||||||
Sangetsu Corp. |
2,256 | 30,964 | ||||||
SEB SA |
616 | 96,451 | ||||||
Sekisui Chemical Co. Ltd. |
8,500 | 139,026 | ||||||
Sekisui House Ltd. |
16,600 | 343,792 | ||||||
Sharp Corp. |
6,200 | 72,916 | ||||||
Sony Group Corp. |
20,900 | 2,408,472 | ||||||
Sumitomo Forestry Co. Ltd.(a) |
7,700 | 146,538 | ||||||
Tama Home Co. Ltd.(a) |
8,800 | 180,978 | ||||||
Taylor Wimpey plc |
87,516 | 185,402 |
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) | ||||||||
Household Durables – (continued) | ||||||||
Token Corp. |
3,100 | $ | 252,567 | |||||
TomTom NV* (a) |
15,532 | 133,819 | ||||||
Vistry Group plc |
10,222 | 170,944 | ||||||
Zojirushi Corp.(a) |
1,300 | 17,934 | ||||||
9,315,539 | ||||||||
Household Products – 0.4% | ||||||||
Earth Corp. |
600 | 36,729 | ||||||
Essity AB, Class A |
616 | 19,939 | ||||||
Essity AB, Class B |
9,592 | 310,259 | ||||||
Henkel AG & Co. KGaA |
1,770 | 147,685 | ||||||
Henkel AG & Co. KGaA (Preference) |
2,288 | 204,886 | ||||||
Lion Corp. |
2,400 | 39,886 | ||||||
Pigeon Corp.(a) |
2,400 | 55,504 | ||||||
PZ Cussons plc |
28,228 | 83,191 | ||||||
Reckitt Benckiser Group plc |
11,484 | 932,695 | ||||||
Sano-Brunos Enterprises Ltd. |
1,408 | 158,736 | ||||||
Unicharm Corp. |
9,600 | 386,610 | ||||||
2,376,120 | ||||||||
Independent Power and Renewable
Electricity Producers – 0.4% |
||||||||
Albioma SA |
42 | 1,653 | ||||||
Boralex, Inc., Class A(a) |
2,081 | 64,299 | ||||||
Brookfield Renewable Corp. |
5,298 | 219,092 | ||||||
Capital Power Corp. |
4,094 | 134,259 | ||||||
ContourGlobal plc(b) |
17,776 | 48,489 | ||||||
Doral Group Renewable Energy Resources Ltd.* |
2,244 | 10,918 | ||||||
Drax Group plc |
168,036 | 1,221,929 | ||||||
EDP Renovaveis SA |
7,524 | 209,842 | ||||||
Electric Power Development Co. Ltd.(a) |
3,100 | 40,835 | ||||||
Encavis AG |
3,746 | 78,465 | ||||||
Enlight Renewable Energy Ltd.* |
32,188 | 79,531 | ||||||
ERG SpA |
2,090 | 75,510 | ||||||
Innergex Renewable Energy, Inc. |
559 | 9,290 | ||||||
Meridian Energy Ltd. |
28,875 | 103,115 | ||||||
Northland Power, Inc.(a) |
2,116 | 67,924 | ||||||
Scatec ASA(b) |
988 | 19,400 | ||||||
TransAlta Corp. |
20,548 | 230,089 |
Investments | Shares | Value | ||||||
Independent Power and Renewable
Electricity Producers – (continued) |
||||||||
Uniper SE |
2,028 | $ | 89,675 | |||||
2,704,315 | ||||||||
Industrial Conglomerates – 1.1% | ||||||||
Arad Investment & Industrial Development Ltd. |
1,408 | 159,852 | ||||||
Bonheur ASA |
3,702 | 145,948 | ||||||
CK Hutchison Holdings Ltd. |
64,356 | 433,091 | ||||||
DCC plc |
988 | 82,694 | ||||||
Guoco Group Ltd. |
4,000 | 46,792 | ||||||
Hitachi Ltd. |
22,000 | 1,264,530 | ||||||
Indus Holding AG |
7,285 | 286,639 | ||||||
Investment AB Latour, Class B |
3,256 | 117,980 | ||||||
Italmobiliare SpA |
245 | 8,605 | ||||||
Jardine Matheson Holdings Ltd. |
4,400 | 254,892 | ||||||
Keihan Holdings Co. Ltd.(a) |
4,400 | 115,301 | ||||||
Keppel Corp. Ltd. |
13,200 | 52,663 | ||||||
Lifco AB, Class B |
6,732 | 196,038 | ||||||
Melrose Industries plc |
73,220 | 158,378 | ||||||
Nisshinbo Holdings, Inc. |
47,400 | 364,983 | ||||||
Nolato AB, Class B |
7,100 | 93,746 | ||||||
Noritsu Koki Co. Ltd. |
800 | 16,572 | ||||||
Rheinmetall AG |
1,144 | 110,995 | ||||||
Shun Tak Holdings Ltd.* (a) |
616,000 | 168,668 | ||||||
Siemens AG (Registered) |
13,068 | 2,121,446 | ||||||
Smiths Group plc |
2,860 | 53,140 | ||||||
TOKAI Holdings Corp. |
55,595 | 421,259 | ||||||
Toshiba Corp. |
8,800 | 378,935 | ||||||
7,053,147 | ||||||||
Insurance – 4.1% | ||||||||
Admiral Group plc |
4,708 | 185,215 | ||||||
Aegon NV(a) |
53,179 | 269,859 | ||||||
Ageas SA |
5,544 | 270,105 | ||||||
AIA Group Ltd. |
204,800 | 2,312,838 | ||||||
Allianz SE (Registered) |
9,349 | 2,176,268 | ||||||
Alm Brand A/S(a) |
8,488 | 65,492 | ||||||
ASR Nederland NV |
3,620 | 169,497 | ||||||
Assicurazioni Generali SpA(a) |
24,640 | 537,501 | ||||||
AUB Group Ltd. |
2,255 | 36,771 | ||||||
Aviva plc |
76,824 | 415,645 | ||||||
AXA SA |
48,400 | 1,409,234 |
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) | ||||||||
Insurance – (continued) | ||||||||
Baloise Holding AG (Registered) |
1,056 | $ | 168,729 | |||||
Beazley plc* |
5,676 | 30,343 | ||||||
Clal Insurance Enterprises Holdings Ltd.* |
24,068 | 595,591 | ||||||
Coface SA |
5,065 | 72,389 | ||||||
Conduit Holdings Ltd.(a) |
23,874 | 143,991 | ||||||
Dai-ichi Life Holdings, Inc. |
24,400 | 513,893 | ||||||
Direct Line Insurance Group plc |
46,112 | 184,820 | ||||||
Fairfax Financial Holdings Ltd. |
484 | 195,720 | ||||||
Gjensidige Forsikring ASA |
945 | 23,471 | ||||||
Great Eastern Holdings Ltd. |
2,400 | 38,300 | ||||||
Great-West Lifeco, Inc.(a) |
6,344 | 186,346 | ||||||
Grupo Catalana Occidente SA |
2,102 | 74,801 | ||||||
Hannover Rueck SE |
1,898 | 347,041 | ||||||
Harel Insurance Investments & Financial Services Ltd. |
8,005 | 89,487 | ||||||
Helvetia Holding AG (Registered) |
1,265 | 150,900 | ||||||
iA Financial Corp., Inc. |
4,092 | 241,681 | ||||||
Insurance Australia Group Ltd. |
17,160 | 61,867 | ||||||
Intact Financial Corp. |
2,816 | 376,913 | ||||||
Japan Post Holdings Co. Ltd.* |
24,900 | 191,076 | ||||||
Just Group plc* |
331,980 | 418,202 | ||||||
Lancashire Holdings Ltd. |
24,992 | 173,344 | ||||||
Legal & General Group plc |
125,576 | 497,293 | ||||||
Manulife Financial Corp. |
41,404 | 805,333 | ||||||
Medibank Pvt Ltd. |
52,475 | 130,854 | ||||||
Menora Mivtachim Holdings Ltd. |
13,157 | 304,247 | ||||||
Migdal Insurance & Financial Holdings Ltd. |
90,400 | 153,805 | ||||||
MS&AD Insurance Group Holdings, Inc. |
8,800 | 284,471 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) |
3,652 | 1,082,772 | ||||||
nib holdings Ltd. |
11,260 | 55,988 | ||||||
NN Group NV |
6,640 | 355,929 | ||||||
Phoenix Group Holdings plc |
29,128 | 262,162 | ||||||
Phoenix Holdings Ltd. (The) |
5,085 | 64,222 | ||||||
Poste Italiane SpA(b) |
12,259 | 175,064 | ||||||
Power Corp. of Canada |
12,945 | 430,473 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Powszechny Zaklad Ubezpieczen SA |
23,012 | $ | 230,313 | |||||
Prudential plc |
65,340 | 1,338,546 | ||||||
QBE Insurance Group Ltd.(a) |
33,264 | 295,568 | ||||||
Sabre Insurance Group plc(b) |
21,200 | 57,190 | ||||||
Sampo OYJ, Class A |
13,811 | 735,208 | ||||||
SCOR SE |
1,012 | 34,080 | ||||||
Societa Cattolica Di Assicurazione SpA* |
52,835 | 402,323 | ||||||
Sompo Holdings, Inc. |
8,500 | 368,849 | ||||||
Steadfast Group Ltd. |
30,934 | 108,041 | ||||||
Storebrand ASA |
17,930 | 191,905 | ||||||
Sun Life Financial, Inc. |
15,620 | 888,773 | ||||||
Suncorp Group Ltd. |
40,876 | 359,827 | ||||||
Swiss Life Holding AG (Registered) |
704 | 387,229 | ||||||
Swiss Re AG |
6,248 | 606,099 | ||||||
T&D Holdings, Inc. |
8,800 | 112,831 | ||||||
Tokio Marine Holdings, Inc. |
17,600 | 925,804 | ||||||
Topdanmark A/S |
1,650 | 87,732 | ||||||
Tryg A/S |
5,124 | 121,597 | ||||||
Unipol Gruppo SpA |
6,080 | 34,969 | ||||||
UnipolSai Assicurazioni SpA(a) |
27,841 | 80,676 | ||||||
UNIQA Insurance Group AG |
39,072 | 363,989 | ||||||
Wuestenrot & Wuerttembergische AG |
7,744 | 161,491 | ||||||
Yunfeng Financial Group Ltd.* (a) |
664,000 | 176,690 | ||||||
Zurich Insurance Group AG |
3,784 | 1,680,903 | ||||||
26,480,576 | ||||||||
Interactive Media & Services – 0.2% | ||||||||
Adevinta ASA* |
470 | 7,726 | ||||||
Auto Trader Group plc(b) |
15,928 | 132,222 | ||||||
carsales.com Ltd. |
7,568 | 140,175 | ||||||
Dip Corp. |
1,400 | 50,217 | ||||||
Kakaku.com, Inc.(a) |
1,600 | 52,831 | ||||||
New Work SE |
159 | 38,825 | ||||||
REA Group Ltd.(a) |
1,596 | 191,969 | ||||||
Rightmove plc |
17,688 | 167,636 | ||||||
Scout24 SE(b) |
1,879 | 130,903 | ||||||
SEEK Ltd.(a) |
5,653 | 138,843 | ||||||
Z Holdings Corp. |
37,200 | 230,328 | ||||||
1,281,675 |
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) | ||||||||
Internet & Direct Marketing Retail – 0.6% | ||||||||
Allegro.eu SA* (b) |
12,540 | $ | 141,925 | |||||
ASKUL Corp. |
1,000 | 13,558 | ||||||
ASOS plc* |
1,370 | 46,610 | ||||||
Auction Technology Group plc* |
10,604 | 205,531 | ||||||
Belluna Co. Ltd. |
15,600 | 109,176 | ||||||
boohoo Group plc* |
15,511 | 38,643 | ||||||
Delivery Hero SE* (b) |
3,652 | 454,536 | ||||||
Dustin Group AB(a) (b) |
3,680 | 45,033 | ||||||
HelloFresh SE* |
3,420 | 277,046 | ||||||
Just Eat Takeaway.com NV* (b) |
3,476 | 249,785 | ||||||
Mercari, Inc.* |
1,900 | 102,477 | ||||||
Moneysupermarket.com Group plc |
22,168 | 64,420 | ||||||
Prosus NV* |
14,652 | 1,292,219 | ||||||
Rakuten Group, Inc.(a) |
20,200 | 221,443 | ||||||
Shop Apotheke Europe NV* (a) (b) |
748 | 113,397 | ||||||
THG plc* (a) |
21,032 | 62,445 | ||||||
Zalando SE* (b) (d) |
938 | 88,555 | ||||||
Zalando SE* (b) |
2,820 | 266,232 | ||||||
zooplus AG* |
528 | 292,316 | ||||||
ZOZO, Inc. |
2,800 | 89,507 | ||||||
4,174,854 | ||||||||
IT Services – 2.1% | ||||||||
AddNode Group AB(a) |
3,740 | 154,808 | ||||||
Adyen NV* (b) |
528 | 1,595,089 | ||||||
Afterpay Ltd.* |
4,149 | 384,210 | ||||||
Alten SA |
900 | 144,980 | ||||||
Amadeus IT Group SA* |
7,832 | 524,238 | ||||||
Appen Ltd.(a) |
16,514 | 133,339 | ||||||
Atea ASA* |
4,972 | 92,865 | ||||||
Atos SE |
880 | 45,807 | ||||||
Bechtle AG |
2,019 | 151,404 | ||||||
Bell System24 Holdings, Inc. |
5,600 | 71,704 | ||||||
CANCOM SE |
1,981 | 137,001 | ||||||
Capgemini SE |
2,552 | 594,500 | ||||||
CGI, Inc.* |
4,532 | 404,226 | ||||||
Computacenter plc |
1,092 | 40,266 | ||||||
Computershare Ltd. |
15,875 | 223,689 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
Digital Garage, Inc. |
1,300 | $ | 60,425 | |||||
DTS Corp.(a) |
4,000 | 88,472 | ||||||
Econocom Group SA/NV |
64,548 | 273,022 | ||||||
Edenred |
3,260 | 176,446 | ||||||
FDM Group Holdings plc |
3,850 | 63,434 | ||||||
Formula Systems 1985 Ltd. |
829 | 89,075 | ||||||
Fujitsu Ltd. |
3,200 | 550,756 | ||||||
GMO internet, Inc. |
1,200 | 32,993 | ||||||
GMO Payment Gateway, Inc.(a) |
1,400 | 177,294 | ||||||
Indra Sistemas SA* |
47,080 | 569,351 | ||||||
Infocom Corp. |
1,600 | 30,618 | ||||||
Infomart Corp. |
5,300 | 51,594 | ||||||
Itochu Techno-Solutions Corp. |
2,400 | 75,562 | ||||||
Kainos Group plc |
8,184 | 222,121 | ||||||
Keywords Studios plc |
1,144 | 44,472 | ||||||
Matrix IT Ltd. |
2,464 | 66,977 | ||||||
Megaport Ltd.* (a) |
7,072 | 95,134 | ||||||
Mitsubishi Research Institute, Inc. |
4,400 | 163,613 | ||||||
NEC Corp. |
7,300 | 372,603 | ||||||
NEC Networks & System Integration Corp. |
2,400 | 38,497 | ||||||
NET One Systems Co. Ltd. |
3,800 | 124,139 | ||||||
Network International Holdings plc* (b) |
22,792 | 100,975 | ||||||
Nexi SpA* (b) |
8,052 | 140,006 | ||||||
NEXTDC Ltd.* |
15,925 | 140,425 | ||||||
Nihon Unisys Ltd. |
2,600 | 72,738 | ||||||
Nomura Research Institute Ltd. |
5,745 | 228,742 | ||||||
NS Solutions Corp. |
800 | 26,801 | ||||||
NSD Co. Ltd. |
5,160 | 97,973 | ||||||
NTT Data Corp. |
10,400 | 208,228 | ||||||
Nuvei Corp.* (b) |
1,760 | 211,191 | ||||||
Obic Co. Ltd. |
1,500 | 276,124 | ||||||
Otsuka Corp.(a) |
3,400 | 166,981 | ||||||
Relia, Inc.(a) |
24,100 | 246,442 | ||||||
Reply SpA |
842 | 163,408 | ||||||
S&T AG(a) |
228 | 5,483 | ||||||
SCSK Corp. |
2,700 | 54,462 | ||||||
Shopify, Inc., Class A* |
1,892 | 2,758,164 | ||||||
Softcat plc |
364 | 9,695 | ||||||
Solutions 30 SE* (a) |
5,136 | 46,450 | ||||||
Sopra Steria Group SACA |
792 | 155,904 |
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) | ||||||||
IT Services – (continued) | ||||||||
SUNeVision Holdings Ltd. |
90,000 | $ | 82,722 | |||||
TietoEVRY OYJ |
1,598 | 49,006 | ||||||
TIS, Inc. |
6,100 | 165,573 | ||||||
Transcosmos, Inc. |
2,100 | 63,078 | ||||||
Tyro Payments Ltd.* |
55,200 | 167,501 | ||||||
Worldline SA* (b) |
3,094 | 180,387 | ||||||
13,883,183 | ||||||||
Leisure Products – 0.4% | ||||||||
Bandai Namco Holdings, Inc. |
4,500 | 342,833 | ||||||
BRP, Inc. |
639 | 56,098 | ||||||
Games Workshop Group plc |
684 | 90,431 | ||||||
Heiwa Corp. |
2,450 | 43,575 | ||||||
MIPS AB(b) |
440 | 53,127 | ||||||
Mizuno Corp.(a) |
8,800 | 203,899 | ||||||
Sega Sammy Holdings, Inc.(a) |
5,300 | 75,020 | ||||||
Shimano, Inc. |
1,700 | 470,827 | ||||||
Technogym SpA(b) |
4,905 | 51,541 | ||||||
Thule Group AB(b) |
2,805 | 161,601 | ||||||
Tomy Co. Ltd.(a) |
40,100 | 379,811 | ||||||
Universal Entertainment Corp.* |
300 | 7,098 | ||||||
Yamaha Corp. |
4,200 | 264,468 | ||||||
Yonex Co. Ltd.(a) |
10,000 | 65,600 | ||||||
2,265,929 | ||||||||
Life Sciences Tools & Services – 0.4% | ||||||||
Biotage AB |
7,040 | 227,549 | ||||||
Chemometec A/S |
1,408 | 212,897 | ||||||
Clinigen Group plc |
5,270 | 44,282 | ||||||
Eurofins Scientific SE(a) |
2,200 | 259,534 | ||||||
Evotec SE* |
3,042 | 147,327 | ||||||
Gerresheimer AG |
755 | 69,286 | ||||||
Lonza Group AG (Registered) |
1,188 | 975,883 | ||||||
QIAGEN NV* |
4,369 | 243,615 | ||||||
Sartorius Stedim Biotech |
260 | 143,282 | ||||||
Siegfried Holding AG (Registered)* |
165 | 158,815 | ||||||
Tecan Group AG (Registered) |
291 | 178,342 | ||||||
2,660,812 | ||||||||
Machinery – 3.3% | ||||||||
Aalberts NV |
1,404 | 77,746 | ||||||
Aichi Corp.(a) |
26,400 | 186,612 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Aida Engineering Ltd. |
26,000 | $ | 235,089 | |||||
Alfa Laval AB |
5,280 | 226,053 | ||||||
Alstom SA |
4,634 | 165,064 | ||||||
Amada Co. Ltd. |
7,200 | 70,848 | ||||||
ANDRITZ AG(a) |
2,081 | 117,955 | ||||||
Atlas Copco AB, Class A |
11,044 | 709,563 | ||||||
Atlas Copco AB, Class B |
6,952 | 375,992 | ||||||
ATS Automation Tooling Systems, Inc.* |
6,312 | 214,431 | ||||||
Beijer Alma AB |
2,304 | 57,811 | ||||||
Bobst Group SA (Registered)* |
52 | 4,245 | ||||||
Bodycote plc |
11,283 | 123,652 | ||||||
Bucher Industries AG (Registered) |
275 | 138,922 | ||||||
Bystronic AG |
55 | 75,721 | ||||||
Cargotec OYJ, Class B |
684 | 35,493 | ||||||
CKD Corp. |
2,500 | 49,309 | ||||||
CNH Industrial NV |
22,220 | 383,911 | ||||||
Concentric AB |
914 | 26,871 | ||||||
Construcciones y Auxiliar de Ferrocarriles SA |
720 | 31,621 | ||||||
Daetwyler Holding AG |
352 | 136,948 | ||||||
Daifuku Co. Ltd. |
2,800 | 256,610 | ||||||
Daiwa Industries Ltd. |
1,600 | 17,722 | ||||||
Danieli & C Officine Meccaniche SpA(a) |
2,024 | 68,160 | ||||||
Danieli & C Officine Meccaniche SpA (Retirement Savings Plan) |
18,815 | 406,732 | ||||||
DMG Mori AG |
1,007 | 48,945 | ||||||
DMG Mori Co. Ltd.(a) |
2,100 | 36,005 | ||||||
Duerr AG |
2,684 | 121,447 | ||||||
Ebara Corp.(a) |
3,500 | 190,309 | ||||||
Electrolux Professional AB, Class B* |
4,532 | 34,933 | ||||||
Epiroc AB, Class A |
10,130 | 252,056 | ||||||
Epiroc AB, Class B |
7,876 | 167,360 | ||||||
FANUC Corp. |
3,100 | 606,542 | ||||||
Fincantieri SpA* (a) |
213,096 | 168,185 | ||||||
FLSmidth & Co. A/S(a) |
4,972 | 189,186 | ||||||
Fluidra SA |
912 | 34,881 | ||||||
Fuji Corp. |
1,000 | 23,197 | ||||||
Fujitec Co. Ltd. |
2,400 | 54,283 | ||||||
GEA Group AG |
4,200 | 207,007 |
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) | ||||||||
Machinery – (continued) | ||||||||
Georg Fischer AG (Registered) |
93 | $ | 140,963 | |||||
Glory Ltd. |
22,100 | 474,077 | ||||||
Harmonic Drive Systems, Inc.(a) |
1,500 | 67,617 | ||||||
Hino Motors Ltd. |
10,300 | 97,196 | ||||||
Hitachi Construction Machinery Co. Ltd. |
4,400 | 139,882 | ||||||
Hitachi Zosen Corp. |
21,200 | 165,472 | ||||||
Hoshizaki Corp.(a) |
1,200 | 100,609 | ||||||
IHI Corp. |
2,500 | 58,189 | ||||||
IMI plc |
1,824 | 40,854 | ||||||
Indutrade AB |
6,594 | 191,866 | ||||||
Interpump Group SpA |
2,231 | 164,591 | ||||||
Interroll Holding AG (Registered) |
34 | 165,395 | ||||||
Japan Steel Works Ltd. (The) |
2,200 | 64,346 | ||||||
Jungheinrich AG (Preference) |
3,036 | 153,958 | ||||||
Kawasaki Heavy Industries Ltd. |
2,800 | 56,626 | ||||||
KION Group AG |
1,848 | 201,884 | ||||||
Kitz Corp. |
30,700 | 204,622 | ||||||
Komatsu Ltd. |
16,900 | 439,674 | ||||||
Kone OYJ, Class B |
6,336 | 432,315 | ||||||
Konecranes OYJ |
2,273 | 94,643 | ||||||
Krones AG |
926 | 95,641 | ||||||
Kubota Corp.(a) |
17,600 | 373,918 | ||||||
Kurita Water Industries Ltd. |
3,400 | 166,981 | ||||||
Kyokuto Kaihatsu Kogyo Co. Ltd. |
17,700 | 241,226 | ||||||
Makita Corp. |
5,800 | 267,708 | ||||||
Manitou BF SA |
6,888 | 234,750 | ||||||
Max Co. Ltd. |
2,800 | 44,446 | ||||||
Meidensha Corp. |
16,700 | 350,184 | ||||||
Metso Outotec OYJ |
17,994 | 180,748 | ||||||
MINEBEA MITSUMI, Inc. |
8,811 | 222,158 | ||||||
MISUMI Group, Inc. |
2,900 | 121,061 | ||||||
Mitsubishi Heavy Industries Ltd. |
8,800 | 224,505 | ||||||
Mitsuboshi Belting Ltd.(a) |
8,800 | 155,741 | ||||||
Miura Co. Ltd. |
3,300 | 126,328 | ||||||
Morgan Advanced Materials plc |
30,448 | 144,409 | ||||||
Morita Holdings Corp. |
2,600 | 32,607 | ||||||
Nabtesco Corp.(a) |
4,400 | 142,390 | ||||||
Nachi-Fujikoshi Corp. |
8,700 | 328,467 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Neles OYJ |
989 | $ | 14,833 | |||||
NGK Insulators Ltd. |
7,900 | 131,084 | ||||||
Nikkiso Co. Ltd.(a) |
22,400 | 197,823 | ||||||
Nitta Corp. |
12,200 | 278,827 | ||||||
Norma Group SE |
3,772 | 162,383 | ||||||
NSK Ltd. |
18,400 | 123,447 | ||||||
NTN Corp.* |
171,600 | 370,214 | ||||||
Obara Group, Inc.(a) |
4,400 | 140,653 | ||||||
OC Oerlikon Corp. AG (Registered) |
469 | 4,771 | ||||||
OKUMA Corp. |
1,000 | 47,533 | ||||||
Organo Corp. |
4,200 | 265,942 | ||||||
OSG Corp. |
1,500 | 24,916 | ||||||
Palfinger AG |
787 | 34,791 | ||||||
Pfeiffer Vacuum Technology AG |
398 | 99,486 | ||||||
Rational AG |
55 | 54,712 | ||||||
Rotork plc |
23,256 | 112,912 | ||||||
Sandvik AB |
16,280 | 412,284 | ||||||
Schindler Holding AG |
706 | 184,043 | ||||||
Schindler Holding AG (Registered) |
660 | 169,596 | ||||||
Sembcorp Marine Ltd.* |
791,769 | 46,385 | ||||||
SFS Group AG |
593 | 79,954 | ||||||
Shibaura Machine Co. Ltd. |
4,449 | 103,553 | ||||||
Shima Seiki Manufacturing Ltd. |
1,300 | 24,888 | ||||||
Shinmaywa Industries Ltd. |
12,600 | 102,767 | ||||||
SKF AB, Class A |
2,427 | 57,083 | ||||||
SKF AB, Class B |
3,728 | 86,380 | ||||||
SMC Corp. |
1,100 | 655,418 | ||||||
Spirax-Sarco Engineering plc |
1,437 | 307,382 | ||||||
Stabilus SA |
582 | 43,779 | ||||||
Sumitomo Heavy Industries Ltd. |
5,200 | 133,620 | ||||||
Tadano Ltd. |
8,900 | 96,864 | ||||||
Takeuchi Manufacturing Co. Ltd. |
4,400 | 112,870 | ||||||
Takuma Co. Ltd. |
4,600 | 59,908 | ||||||
Techtronic Industries Co. Ltd. |
32,500 | 668,880 | ||||||
Tocalo Co. Ltd.(a) |
8,200 | 100,104 | ||||||
Trelleborg AB, Class B |
6,724 | 153,567 | ||||||
Tsubakimoto Chain Co. |
11,000 | 323,657 | ||||||
Tsugami Corp. |
3,400 | 46,516 | ||||||
Tsukishima Kikai Co. Ltd. |
8,800 | 89,679 |
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) | ||||||||
Machinery – (continued) | ||||||||
Union Tool Co. |
500 | $ | 16,838 | |||||
Valmet OYJ |
4,237 | 172,105 | ||||||
VAT Group AG(b) |
660 | 315,789 | ||||||
Vesuvius plc |
1,150 | 7,440 | ||||||
Volvo AB, Class A |
5,280 | 124,676 | ||||||
Volvo AB, Class B |
30,360 | 706,709 | ||||||
Wacker Neuson SE |
1,713 | 56,220 | ||||||
Wartsila OYJ Abp |
10,560 | 146,586 | ||||||
Weir Group plc (The) |
3,920 | 93,227 | ||||||
Yaskawa Electric Corp. |
4,400 | 189,853 | ||||||
21,188,411 | ||||||||
Marine – 0.5% | ||||||||
AP Moller – Maersk A/S, Class A |
52 | 142,531 | ||||||
AP Moller – Maersk A/S, Class B |
132 | 381,830 | ||||||
D/S Norden A/S |
12,496 | 301,886 | ||||||
Dfds A/S* |
1,804 | 93,450 | ||||||
Golden Ocean Group Ltd. |
49,236 | 443,510 | ||||||
Kawasaki Kisen Kaisha Ltd.* |
1,300 | 62,478 | ||||||
Kuehne + Nagel International AG (Registered) |
748 | 236,004 | ||||||
Mitsui OSK Lines Ltd. |
4,300 | 270,011 | ||||||
Nippon Yusen KK |
4,400 | 315,650 | ||||||
Pacific Basin Shipping Ltd.(a) |
2,024,000 | 936,670 | ||||||
Stolt-Nielsen Ltd. |
12,604 | 193,694 | ||||||
Wallenius Wilhelmsen ASA* |
19,236 | 87,547 | ||||||
Wilh Wilhelmsen Holding ASA, Class A |
2,468 | 54,557 | ||||||
3,519,818 | ||||||||
Media – 1.1% | ||||||||
4imprint Group plc |
3,450 | 135,252 | ||||||
Ascential plc* (b) |
19,337 | 107,085 | ||||||
Atresmedia Corp. de Medios de Comunicacion SA* |
55,220 | 225,707 | ||||||
Cogeco, Inc. |
3,080 | 204,696 | ||||||
Corus Entertainment, Inc., Class B(a) |
94,160 | 426,153 | ||||||
CyberAgent, Inc. |
8,800 | 146,635 | ||||||
Daily Mail & General Trust plc, Class A |
6,037 | 86,062 | ||||||
Dentsu Group, Inc.(a) |
2,100 | 76,799 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
Euromoney Institutional Investor plc |
4,083 | $ | 58,654 | |||||
Future plc |
3,272 | 158,234 | ||||||
Hakuhodo DY Holdings, Inc.(a) |
7,400 | 120,581 | ||||||
Informa plc* |
12,188 | 86,775 | ||||||
IPSOS |
16,412 | 768,258 | ||||||
ITV plc* |
33,220 | 49,020 | ||||||
JCDecaux SA* |
968 | 25,272 | ||||||
Lagardere SA* |
4,213 | 111,356 | ||||||
Mediaset Espana Comunicacion SA* |
67,232 | 350,119 | ||||||
Mediaset NV* |
33,079 | 92,946 | ||||||
Metropole Television SA |
7,314 | 161,326 | ||||||
Nine Entertainment Co. Holdings Ltd. |
10,556 | 21,883 | ||||||
Nippon Television Holdings, Inc. |
2,400 | 25,889 | ||||||
Pearson plc |
16,422 | 135,603 | ||||||
ProSiebenSat.1 Media SE |
9,500 | 159,246 | ||||||
Publicis Groupe SA |
4,512 | 302,534 | ||||||
Quebecor, Inc., Class B |
4,781 | 121,651 | ||||||
RAI Way SpA(b) |
8,120 | 49,240 | ||||||
Reach plc |
132,880 | 576,490 | ||||||
Schibsted ASA, Class A |
2,349 | 120,986 | ||||||
Schibsted ASA, Class B |
2,493 | 112,401 | ||||||
Seven West Media Ltd.* (a) |
520,432 | 177,858 | ||||||
Shaw Communications, Inc., Class B |
6,892 | 198,161 | ||||||
Singapore Press Holdings Ltd.(d) |
27,000 | 39,844 | ||||||
SKY Perfect JSAT Holdings, Inc. |
82,200 | 307,822 | ||||||
Stroeer SE & Co. KGaA |
620 | 52,592 | ||||||
Television Francaise 1 |
37,972 | 406,913 | ||||||
TX Group AG* |
650 | 107,557 | ||||||
Vivendi SE |
15,180 | 195,609 | ||||||
WPP plc |
23,942 | 346,563 | ||||||
YouGov plc(a) |
10,604 | 191,868 | ||||||
Zenrin Co. Ltd. |
2,400 | 22,058 | ||||||
7,063,698 | ||||||||
Metals & Mining – 5.0% | ||||||||
Acerinox SA |
11,176 | 155,654 | ||||||
Agnico Eagle Mines Ltd. |
2,999 | 158,932 | ||||||
Aichi Steel Corp. |
1,700 | 39,524 |
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) | ||||||||
Metals & Mining – (continued) | ||||||||
Alamos Gold, Inc., Class A |
3,957 | $ | 29,305 | |||||
Alumina Ltd.(a) |
7,644 | 11,425 | ||||||
Anglo American plc |
33,924 | 1,293,899 | ||||||
Antofagasta plc |
7,124 | 139,203 | ||||||
Aperam SA |
2,438 | 145,527 | ||||||
ArcelorMittal SA |
17,556 | 595,787 | ||||||
Asahi Holdings, Inc.(a) |
32,400 | 577,673 | ||||||
Aura Minerals, Inc.(a) |
17,996 | 177,993 | ||||||
Aurubis AG |
1,748 | 150,987 | ||||||
B2Gold Corp. |
13,052 | 53,806 | ||||||
Barrick Gold Corp. |
4,064 | 74,457 | ||||||
Barrick Gold Corp. – XLON |
22,380 | 415,065 | ||||||
Bekaert SA |
2,904 | 127,302 | ||||||
Bellevue Gold Ltd.* |
49,941 | 32,259 | ||||||
BHP Group Ltd.(a) |
48,136 | 1,322,548 | ||||||
BHP Group plc |
49,984 | 1,325,776 | ||||||
BlueScope Steel Ltd. |
13,860 | 214,659 | ||||||
Boliden AB |
5,544 | 195,526 | ||||||
Centamin plc |
509,520 | 654,843 | ||||||
Centerra Gold, Inc. |
10,411 | 77,943 | ||||||
Chalice Mining Ltd.* (a) |
23,892 | 119,695 | ||||||
Champion Iron Ltd.* |
27,104 | 89,574 | ||||||
Daido Steel Co. Ltd. |
2,000 | 76,562 | ||||||
Dowa Holdings Co. Ltd. |
2,200 | 91,550 | ||||||
Dundee Precious Metals, Inc. |
78,012 | 512,297 | ||||||
Eldorado Gold Corp.* (a) |
78,804 | 703,772 | ||||||
Endeavour Mining plc(a) |
2,501 | 63,435 | ||||||
Equinox Gold Corp.* (a) |
112,112 | 830,292 | ||||||
Eramet SA* |
4,664 | 390,233 | ||||||
Evolution Mining Ltd. |
35,786 | 97,570 | ||||||
Evraz plc |
23,537 | 200,549 | ||||||
Ferrexpo plc |
22,440 | 95,970 | ||||||
First Majestic Silver Corp.(a) |
7,676 | 97,099 | ||||||
First Quantum Minerals Ltd. |
13,288 | 314,097 | ||||||
Fortescue Metals Group Ltd. |
40,568 | 424,456 | ||||||
Fortuna Silver Mines, Inc.* (a) |
105,732 | 511,792 | ||||||
Franco-Nevada Corp. |
2,581 | 367,697 | ||||||
Glencore plc* |
239,140 | 1,197,294 | ||||||
Granges AB(a) |
35,024 | 381,090 | ||||||
Hill & Smith Holdings plc |
3,264 | 82,056 | ||||||
Hitachi Metals Ltd.* |
4,740 | 89,666 | ||||||
Hochschild Mining plc(a) |
152,856 | 298,786 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Hudbay Minerals, Inc.(a) |
19,756 | $ | 137,545 | |||||
IAMGOLD Corp.* (a) |
182,556 | 502,211 | ||||||
IGO Ltd. |
19,186 | 138,918 | ||||||
Iluka Resources Ltd. |
6,916 | 48,829 | ||||||
Ivanhoe Mines Ltd., Class A* (a) |
21,170 | 165,835 | ||||||
Jastrzebska Spolka Weglowa SA* |
25,872 | 336,164 | ||||||
JFE Holdings, Inc. |
8,800 | 134,518 | ||||||
KGHM Polska Miedz SA |
4,840 | 186,236 | ||||||
Kinross Gold Corp. |
24,079 | 144,526 | ||||||
Kirkland Lake Gold Ltd.(a) |
7,876 | 331,484 | ||||||
Kobe Steel Ltd.(a) |
7,000 | 41,131 | ||||||
Kyoei Steel Ltd. |
3,900 | 48,021 | ||||||
Labrador Iron Ore Royalty Corp.(a) |
27,236 | 787,274 | ||||||
Lithium Americas Corp.* |
7,392 | 214,088 | ||||||
Lundin Gold, Inc.* |
6,342 | 57,968 | ||||||
Lundin Mining Corp.(a) |
8,112 | 70,482 | ||||||
Lynas Rare Earths Ltd.* |
28,584 | 157,371 | ||||||
MAG Silver Corp.* |
4,656 | 92,590 | ||||||
Mineral Resources Ltd. |
3,784 | 109,679 | ||||||
Mitsubishi Materials Corp. |
900 | 17,412 | ||||||
Mount Gibson Iron Ltd. |
218,737 | 69,003 | ||||||
New Gold, Inc.* (a) |
287,012 | 402,889 | ||||||
Newcrest Mining Ltd. |
10,692 | 199,886 | ||||||
Nippon Light Metal Holdings Co. Ltd. |
22,000 | 364,078 | ||||||
Nippon Steel Corp. |
24,115 | 422,766 | ||||||
Norsk Hydro ASA |
42,080 | 307,816 | ||||||
Northern Star Resources Ltd. |
25,378 | 176,127 | ||||||
Novagold Resources, Inc.* (a) |
7,962 | 58,067 | ||||||
OceanaGold Corp.* |
1,000 | 1,864 | ||||||
OceanaGold Corp.* (a) |
252,836 | 471,180 | ||||||
Osisko Gold Royalties Ltd. |
5,548 | 69,957 | ||||||
Osisko Mining, Inc.* (a) |
50,028 | 107,761 | ||||||
Outokumpu OYJ* (a) |
14,960 | 93,487 | ||||||
OZ Minerals Ltd.(a) |
10,560 | 199,322 | ||||||
Pan American Silver Corp. |
4,082 | 104,293 | ||||||
Perenti Global Ltd.(a) |
411,532 | 315,284 | ||||||
Perseus Mining Ltd.* |
561,352 | 666,178 | ||||||
Petropavlovsk plc* |
1,133,396 | 370,379 | ||||||
Polymetal International plc |
5,376 | 99,852 | ||||||
Pretium Resources, Inc.* |
5,096 | 61,544 |
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) | ||||||||
Metals & Mining – (continued) | ||||||||
Ramelius Resources Ltd.(a) |
381,920 | $ | 456,108 | |||||
Regis Resources Ltd. |
339,372 | 509,805 | ||||||
Rio Tinto Ltd. |
9,548 | 647,515 | ||||||
Rio Tinto plc |
23,936 | 1,496,312 | ||||||
Salzgitter AG* |
16,852 | 620,553 | ||||||
Sandfire Resources Ltd.(a) |
154,176 | 643,857 | ||||||
Sandstorm Gold Ltd.* |
13,772 | 86,995 | ||||||
Sanyo Special Steel Co. Ltd. |
4,800 | 78,846 | ||||||
Silver Lake Resources Ltd.* (a) |
413,556 | 526,504 | ||||||
Sims Ltd. |
5,980 | 64,185 | ||||||
South32 Ltd. |
149,850 | 401,812 | ||||||
SSAB AB, Class A* |
13,394 | 76,261 | ||||||
SSR Mining, Inc. |
8,601 | 135,446 | ||||||
St Barbara Ltd.(a) |
205,612 | 226,248 | ||||||
Stelco Holdings, Inc. |
18,216 | 631,472 | ||||||
Sumitomo Metal Mining Co. Ltd. |
5,100 | 197,828 | ||||||
Teck Resources Ltd., Class B |
12,320 | 343,296 | ||||||
Toho Titanium Co. Ltd. |
200 | 2,096 | ||||||
Tokyo
Steel Manufacturing Co. |
35,200 | 390,820 | ||||||
Torex Gold Resources, Inc.* (a) |
26,268 | 304,947 | ||||||
Turquoise Hill Resources Ltd.* (a) |
8,140 | 102,969 | ||||||
UACJ Corp.* |
9,600 | 221,594 | ||||||
voestalpine AG(a) |
1,880 | 71,448 | ||||||
Westgold Resources Ltd.(a) |
160,719 | 235,396 | ||||||
Wheaton Precious Metals Corp. |
6,328 | 255,050 | ||||||
Yamana Gold, Inc.(a) |
24,430 | 95,785 | ||||||
Yodogawa Steel Works Ltd.(a) |
2,900 | 63,176 | ||||||
32,175,964 | ||||||||
Multiline Retail – 0.5% | ||||||||
B&M European Value Retail SA |
23,980 | 208,137 | ||||||
Canadian Tire Corp. Ltd., Class A(a) |
1,248 | 176,978 | ||||||
Dollarama, Inc. |
4,444 | 200,554 | ||||||
Europris ASA(b) |
67,716 | 499,507 | ||||||
H2O Retailing Corp. |
14,415 | 114,663 | ||||||
Harvey Norman Holdings Ltd.(a) |
5,610 | 20,900 |
Investments | Shares | Value | ||||||
Multiline Retail – (continued) | ||||||||
Isetan Mitsukoshi Holdings Ltd. |
300 | $ | 2,184 | |||||
Izumi Co. Ltd. |
1,300 | 39,276 | ||||||
J Front Retailing Co. Ltd. |
300 | 2,765 | ||||||
Marks & Spencer Group plc* |
63,352 | 159,438 | ||||||
Marui Group Co. Ltd. |
5,500 | 107,516 | ||||||
Next plc |
2,420 | 264,249 | ||||||
Pan Pacific International Holdings Corp. |
11,900 | 249,010 | ||||||
Ryohin Keikaku Co. Ltd. |
6,000 | 117,764 | ||||||
Seria Co. Ltd. |
1,000 | 32,975 | ||||||
Warehouse Group Ltd. (The)(a) |
11,552 | 33,317 | ||||||
Wesfarmers Ltd. |
20,260 | 871,190 | ||||||
3,100,423 | ||||||||
Multi-Utilities – 0.7% | ||||||||
A2A SpA |
78,430 | 165,007 | ||||||
ACEA SpA |
1,552 | 33,694 | ||||||
AGL Energy Ltd.(a) |
1,188 | 5,104 | ||||||
Algonquin Power & Utilities Corp.(a) |
8,846 | 127,314 | ||||||
Atco Ltd., Class I |
1,064 | 36,052 | ||||||
Centrica plc* |
35,992 | 29,760 | ||||||
E.ON SE |
58,960 | 748,226 | ||||||
Engie SA |
35,728 | 508,393 | ||||||
Hera SpA |
30,628 | 125,366 | ||||||
Iren SpA |
34,534 | 107,345 | ||||||
National Grid plc |
61,183 | 784,488 | ||||||
REN – Redes Energeticas Nacionais SGPS SA |
161,524 | 492,544 | ||||||
RWE AG |
9,680 | 372,697 | ||||||
Sembcorp Industries Ltd. |
4,000 | 5,962 | ||||||
Suez SA |
9,640 | 219,604 | ||||||
Telecom Plus plc |
4,843 | 82,849 | ||||||
Veolia Environnement SA |
18,127 | 592,194 | ||||||
4,436,599 | ||||||||
Oil, Gas & Consumable Fuels – 4.4% | ||||||||
Aker BP ASA |
1,828 | 69,993 | ||||||
Ampol Ltd. |
6,084 | 139,604 | ||||||
ARC Resources Ltd.(a) |
27,764 | 265,870 | ||||||
Beach Energy Ltd.(a) |
90,532 | 94,858 | ||||||
BP plc |
499,488 | 2,397,725 | ||||||
BRIGHTOIL*‡ (d) |
50,147 | — | ||||||
BW LPG Ltd.(b) |
36,652 | 194,974 |
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) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Cairn Energy plc |
23,656 | $ | 59,308 | |||||
Cameco Corp.(a) |
9,372 | 227,353 | ||||||
Canadian Natural Resources Ltd.(a) |
30,844 | 1,308,858 | ||||||
Cenovus Energy, Inc.(a) |
30,536 | 364,594 | ||||||
China Aviation Oil Singapore Corp. Ltd. |
3,600 | 2,670 | ||||||
Cosmo Energy Holdings Co. Ltd. |
5,000 | 102,302 | ||||||
Crescent Point Energy Corp. |
223,784 | 1,122,937 | ||||||
CropEnergies AG |
14,916 | 214,043 | ||||||
Diversified Energy Co. plc(b) |
286,352 | 452,965 | ||||||
DNO ASA* |
261,448 | 380,151 | ||||||
Enbridge, Inc. |
31,724 | 1,326,749 | ||||||
ENEOS Holdings, Inc. |
57,250 | 230,757 | ||||||
Energean plc* |
3,432 | 42,222 | ||||||
Eni SpA |
52,536 | 754,129 | ||||||
Equinor ASA |
22,924 | 579,245 | ||||||
Equital Ltd.* |
8,140 | 250,529 | ||||||
Euronav NV |
85,976 | 914,366 | ||||||
FLEX LNG Ltd. |
13,244 | 267,094 | ||||||
Galp Energia SGPS SA |
2,640 | 27,472 | ||||||
Gaztransport Et Technigaz SA |
660 | 54,534 | ||||||
Gibson Energy, Inc. |
7,971 | 160,378 | ||||||
Hafnia Ltd.* |
46,860 | 99,489 | ||||||
Idemitsu Kosan Co. Ltd. |
4,282 | 116,978 | ||||||
Imperial Oil Ltd.(a) |
6,600 | 223,097 | ||||||
Inpex Corp.(a) |
15,200 | 126,905 | ||||||
Itochu Enex Co. Ltd.(a) |
17,700 | 155,695 | ||||||
Iwatani Corp. |
2,197 | 129,094 | ||||||
Japan Petroleum Exploration Co. Ltd.(a) |
14,900 | 271,408 | ||||||
Keyera Corp.(a) |
1,840 | 47,085 | ||||||
Koninklijke Vopak NV |
1,558 | 62,023 | ||||||
Lundin Energy AB |
4,170 | 164,693 | ||||||
Mitsuuroko Group Holdings Co. Ltd. |
1,200 | 14,281 | ||||||
Neste OYJ |
7,656 | 426,959 | ||||||
New Hope Corp. Ltd.(a) |
213,268 | 321,973 | ||||||
NexGen Energy Ltd.* (a) |
37,092 | 204,679 | ||||||
Norwegian Energy Co.* (a) |
13,420 | 259,856 | ||||||
Oil Refineries Ltd.* |
562,716 | 152,584 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
OMV AG(a) |
4,884 | $ | 296,165 | |||||
Parex Resources, Inc. |
52,272 | 1,013,348 | ||||||
Parkland Corp. |
2,207 | 64,115 | ||||||
Paz Oil Co. Ltd.* |
3,916 | 498,920 | ||||||
Pembina Pipeline Corp. |
10,648 | 351,941 | ||||||
Polski Koncern Naftowy ORLEN SA |
11,308 | 244,106 | ||||||
PrairieSky Royalty Ltd.(a) |
8,096 | 99,473 | ||||||
Repsol SA |
26,400 | 337,776 | ||||||
Royal Dutch Shell plc, Class A |
92,884 | 2,140,262 | ||||||
Royal Dutch Shell plc, Class B |
82,940 | 1,915,677 | ||||||
San-Ai Oil Co. Ltd.(a) |
26,100 | 338,310 | ||||||
Santos Ltd.(a) |
38,368 | 201,151 | ||||||
Suncor Energy, Inc. |
21,516 | 565,000 | ||||||
TC Energy Corp. |
16,060 | 867,425 | ||||||
TotalEnergies SE |
57,992 | 2,910,615 | ||||||
Tourmaline Oil Corp. |
7,144 | 257,796 | ||||||
Tullow Oil plc* |
130,944 | 82,512 | ||||||
United Energy Group Ltd.(a) |
198,000 | 17,563 | ||||||
Washington H Soul Pattinson & Co. Ltd. |
3,009 | 73,407 | ||||||
Whitecap Resources, Inc.(a) |
199,804 | 1,197,647 | ||||||
Whitehaven Coal Ltd.* (a) |
98,472 | 193,042 | ||||||
Woodside Petroleum Ltd. |
10,868 | 189,870 | ||||||
Z Energy Ltd. |
38,324 | 98,736 | ||||||
28,737,336 | ||||||||
Paper & Forest Products – 0.5% | ||||||||
Canfor Corp.* |
1,464 | 30,283 | ||||||
Daiken Corp. |
6,500 | 141,658 | ||||||
Daio Paper Corp. |
3,745 | 65,654 | ||||||
Hokuetsu Corp.(a) |
57,300 | 376,891 | ||||||
Holmen AB, Class B |
1,540 | 68,281 | ||||||
Interfor Corp. |
25,168 | 575,419 | ||||||
Metsa Board OYJ |
6,595 | 61,056 | ||||||
Mondi plc |
11,176 | 279,581 | ||||||
Navigator Co. SA (The)(a) |
5,269 | 20,610 | ||||||
Nippon Paper Industries Co. Ltd.(a) |
47,700 | 487,354 | ||||||
Oji Holdings Corp. |
26,000 | 128,603 | ||||||
Stella-Jones, Inc. |
3,652 | 130,901 | ||||||
Stora Enso OYJ, Class R |
9,108 | 151,569 | ||||||
Svenska Cellulosa AB SCA, Class A |
3,160 | 49,745 |
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) | ||||||||
Paper & Forest Products – (continued) | ||||||||
Svenska Cellulosa AB SCA, Class B |
6,688 | $ | 104,270 | |||||
Tokushu Tokai Paper Co. Ltd.(a) |
4,400 | 170,945 | ||||||
UPM-Kymmene OYJ |
10,208 | 360,539 | ||||||
West Fraser Timber Co. Ltd.(a) |
2,747 | 219,596 | ||||||
3,422,955 | ||||||||
Personal Products – 1.0% | ||||||||
Beiersdorf AG |
1,320 | 140,384 | ||||||
Blackmores Ltd. |
46 | 3,254 | ||||||
euglena Co. Ltd.* (a) |
17,600 | 124,562 | ||||||
Fancl Corp. |
400 | 12,067 | ||||||
Interparfums SA |
719 | 58,078 | ||||||
Jamieson Wellness, Inc.(a) (b) |
2,330 | 71,636 | ||||||
Kao Corp.(a) |
7,800 | 439,919 | ||||||
Kobayashi
Pharmaceutical Co. |
1,400 | 111,853 | ||||||
Kose Corp.(a) |
700 | 80,973 | ||||||
L’Occitane International SA |
15,500 | 55,293 | ||||||
L’Oreal SA |
4,224 | 1,930,604 | ||||||
Mandom Corp. |
2,600 | 37,715 | ||||||
Milbon Co. Ltd. |
1,000 | 59,636 | ||||||
Noevir Holdings Co. Ltd. |
1,900 | 92,646 | ||||||
Ontex Group NV* (a) |
23,804 | 224,234 | ||||||
Pola Orbis Holdings, Inc.(a) |
2,000 | 42,622 | ||||||
Rohto Pharmaceutical Co. Ltd. |
2,000 | 60,952 | ||||||
Shiseido Co. Ltd.(a) |
6,700 | 445,100 | ||||||
Unilever plc |
20,736 | 1,111,942 | ||||||
Unilever plc |
23,440 | 1,256,202 | ||||||
6,359,672 | ||||||||
Pharmaceuticals – 4.5% | ||||||||
ALK-Abello A/S* |
208 | 90,210 | ||||||
Almirall SA |
4,404 | 65,490 | ||||||
Astellas Pharma, Inc. |
30,600 | 514,450 | ||||||
AstraZeneca plc |
26,048 | 3,247,040 | ||||||
Bausch Health Cos., Inc.* |
7,348 | 205,641 | ||||||
Bayer AG (Registered) |
21,868 | 1,231,679 | ||||||
Canopy Growth Corp.* |
6,156 | 77,723 | ||||||
Chugai Pharmaceutical Co. Ltd. |
9,200 | 342,665 | ||||||
COSMO Pharmaceuticals NV* (a) |
413 | 31,503 | ||||||
Cronos Group, Inc.* |
13,640 | 70,646 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Daiichi Sankyo Co. Ltd. |
30,300 | $ | 761,851 | |||||
Dechra Pharmaceuticals plc |
3,080 | 216,162 | ||||||
Eisai Co. Ltd. |
5,500 | 387,183 | ||||||
Faes Farma SA |
16,374 | 66,851 | ||||||
Financiere de Tubize SA(a) |
751 | 82,825 | ||||||
GlaxoSmithKline plc |
114,312 | 2,363,873 | ||||||
H Lundbeck A/S |
484 | 13,470 | ||||||
Haw Par Corp. Ltd. |
3,200 | 29,900 | ||||||
HEXO Corp.* |
8,008 | 11,629 | ||||||
Hikma Pharmaceuticals plc |
2,900 | 95,682 | ||||||
Hisamitsu Pharmaceutical Co., Inc. |
1,900 | 64,486 | ||||||
Hutchmed China Ltd.* (a) |
7,150 | 42,879 | ||||||
Indivior plc* |
61,154 | 203,867 | ||||||
Ipsen SA |
770 | 79,663 | ||||||
JCR Pharmaceuticals Co. Ltd.(a) |
2,400 | 58,913 | ||||||
Kaken Pharmaceutical Co. Ltd.(a) |
1,500 | 59,066 | ||||||
Kissei Pharmaceutical Co. Ltd. |
1,400 | 27,957 | ||||||
KYORIN Holdings, Inc. |
22,000 | 336,873 | ||||||
Kyowa Kirin Co. Ltd. |
4,400 | 144,319 | ||||||
Merck KGaA |
2,508 | 592,667 | ||||||
Mochida Pharmaceutical Co. Ltd. |
900 | 26,126 | ||||||
Nichi-iko Pharmaceutical Co. Ltd.(a) |
30,400 | 230,083 | ||||||
Nippon Shinyaku Co. Ltd. |
2,000 | 159,790 | ||||||
Novartis AG (Registered) |
41,712 | 3,452,909 | ||||||
Novo Nordisk A/S, Class B |
28,336 | 3,104,536 | ||||||
Ono Pharmaceutical Co. Ltd. |
5,000 | 104,604 | ||||||
Orion OYJ, Class A |
1,474 | 63,626 | ||||||
Orion OYJ, Class B |
1,404 | 60,815 | ||||||
Otsuka Holdings Co. Ltd.(a) |
10,100 | 398,065 | ||||||
Recordati Industria Chimica e Farmaceutica SpA |
2,359 | 147,745 | ||||||
Roche Holding AG |
11,792 | 4,569,037 | ||||||
Roche Holding AG – BR |
496 | 213,328 | ||||||
Sanofi |
19,360 | 1,936,409 | ||||||
Santen Pharmaceutical Co. Ltd. |
4,500 | 63,184 | ||||||
Seikagaku Corp. |
1,800 | 15,849 | ||||||
Shionogi & Co. Ltd. |
4,100 | 266,334 | ||||||
Sosei Group Corp.* (a) |
9,600 | 152,977 | ||||||
Sumitomo Dainippon Pharma Co. Ltd.(a) |
3,600 | 50,736 |
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) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Taisho Pharmaceutical Holdings Co. Ltd. |
600 | $ | 32,098 | |||||
Takeda Pharmaceutical Co. Ltd. |
39,617 | 1,112,855 | ||||||
Teva Pharmaceutical Industries Ltd.* |
17,072 | 150,881 | ||||||
Tilray, Inc.* |
10,564 | 108,406 | ||||||
Torii Pharmaceutical Co. Ltd. |
800 | 20,697 | ||||||
Towa Pharmaceutical Co. Ltd.(a) |
10,000 | 256,523 | ||||||
Tsumura & Co. |
900 | 27,941 | ||||||
UCB SA |
3,652 | 435,729 | ||||||
Vifor Pharma AG |
837 | 108,180 | ||||||
Virbac SA |
212 | 107,335 | ||||||
ZERIA Pharmaceutical Co. Ltd.(a) |
1,800 | 32,109 | ||||||
28,926,070 | ||||||||
Professional Services – 1.5% | ||||||||
Adecco Group AG (Registered)(a) |
3,960 | 199,658 | ||||||
AFRY AB, Class B |
4,429 | 131,913 | ||||||
ALS Ltd. |
13,503 | 133,977 | ||||||
Applus Services SA |
59,004 | 534,651 | ||||||
BayCurrent Consulting, Inc. |
400 | 164,525 | ||||||
Benefit One, Inc. |
2,000 | 100,855 | ||||||
Bureau Veritas SA |
4,296 | 136,519 | ||||||
DKSH Holding AG |
660 | 52,945 | ||||||
en-japan, Inc. |
1,700 | 67,240 | ||||||
Experian plc |
15,972 | 732,779 | ||||||
Funai Soken Holdings, Inc. |
2,700 | 74,707 | ||||||
Hays plc |
34,264 | 77,966 | ||||||
Intertek Group plc |
2,376 | 159,425 | ||||||
Intertrust NV* (b) |
35,860 | 542,807 | ||||||
IPH Ltd. |
21,158 | 136,034 | ||||||
JAC Recruitment Co. Ltd. |
1,300 | 25,447 | ||||||
LifeWorks, Inc. |
2,428 | 62,661 | ||||||
McMillan Shakespeare Ltd.(a) |
34,804 | 357,874 | ||||||
Meitec Corp. |
1,500 | 89,717 | ||||||
Nihon M&A Center Holdings, Inc. |
4,800 | 146,705 | ||||||
Nomura Co. Ltd. |
6,000 | 58,934 | ||||||
Omni Bridgeway Ltd.* (a) |
113,564 | 264,424 | ||||||
Outsourcing, Inc. |
4,800 | 91,601 |
Investments | Shares | Value | ||||||
Professional Services – (continued) | ||||||||
Pagegroup plc |
20,728 | $ | 188,662 | |||||
Persol Holdings Co. Ltd. |
5,700 | 152,467 | ||||||
Randstad NV |
2,596 | 186,863 | ||||||
Recruit Holdings Co. Ltd. |
28,100 | 1,866,022 | ||||||
RELX plc |
32,560 | 1,010,460 | ||||||
RWS Holdings plc |
13,752 | 117,250 | ||||||
SGS SA (Registered) |
88 | 260,798 | ||||||
SmartGroup Corp. Ltd. |
7,766 | 46,781 | ||||||
SMS Co. Ltd. |
3,200 | 124,043 | ||||||
Stantec, Inc. |
1,027 | 56,671 | ||||||
Synergie SE |
440 | 20,342 | ||||||
TechnoPro Holdings, Inc. |
1,100 | 34,970 | ||||||
Teleperformance |
924 | 386,124 | ||||||
Thomson Reuters Corp. |
2,072 | 248,847 | ||||||
Wolters Kluwer NV |
5,324 | 558,451 | ||||||
9,602,115 | ||||||||
Real Estate Management & Development – 2.5% | ||||||||
ADLER Group SA(a) (b) |
5,290 | 71,809 | ||||||
Aedas Homes SA(b) |
8,624 | 248,006 | ||||||
Aeon Mall Co. Ltd. |
1,990 | 29,006 | ||||||
AFI Properties Ltd.* |
165 | 8,572 | ||||||
Airport City Ltd.* |
1,928 | 36,815 | ||||||
Allreal Holding AG (Registered) |
366 | 77,546 | ||||||
Alrov Properties and Lodgings Ltd.* |
108 | 5,956 | ||||||
Altus Group Ltd. |
1,792 | 93,839 | ||||||
Amot Investments Ltd. |
11,168 | 85,294 | ||||||
Aroundtown SA |
8,756 | 60,899 | ||||||
Atrium Ljungberg AB, Class B |
2,912 | 66,862 | ||||||
Azrieli Group Ltd. |
1,016 | 95,071 | ||||||
Big Shopping Centers Ltd. |
16 | 2,401 | ||||||
Blue Square Real Estate Ltd. |
283 | 21,874 | ||||||
Bukit Sembawang Estates Ltd. |
44,000 | 170,649 | ||||||
C C Land Holdings Ltd. |
138,000 | 30,868 | ||||||
CA Immobilien Anlagen AG |
1,760 | 75,360 | ||||||
Capitaland Investment Ltd.* |
62,731 | 160,026 | ||||||
Castellum AB(a) |
6,732 | 179,029 | ||||||
Catena AB |
1,676 | 102,061 | ||||||
Cibus Nordic Real Estate AB(a) |
5,094 | 134,757 | ||||||
City Developments Ltd. |
600 | 3,257 | ||||||
CK Asset Holdings Ltd. |
44,000 | 271,781 | ||||||
CLS Holdings plc |
14,403 | 44,224 |
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) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Colliers International Group, Inc.(a) |
1,142 | $ | 165,411 | |||||
Corem Property Group AB, Class B |
67,178 | 222,923 | ||||||
Daibiru Corp.(a) |
3,300 | 45,698 | ||||||
Daito Trust Construction Co. Ltd.(a) |
1,900 | 235,282 | ||||||
Daiwa House Industry Co. Ltd. |
16,200 | 532,920 | ||||||
Deutsche EuroShop AG |
19,844 | 403,486 | ||||||
Deutsche Wohnen SE* (d) |
6,110 | 374,752 | ||||||
Dios Fastigheter AB |
40,744 | 474,165 | ||||||
Fabege AB |
8,276 | 139,917 | ||||||
Far East Consortium International Ltd. |
504,358 | 166,627 | ||||||
Fastighets AB Balder, Class B* |
2,816 | 204,007 | ||||||
FastPartner AB, Class A |
6,642 | 94,659 | ||||||
FirstService Corp. |
676 | 134,616 | ||||||
Gav-Yam Lands Corp. Ltd. |
977 | 11,643 | ||||||
Gazit-Globe Ltd. |
23,040 | 187,204 | ||||||
Goldcrest Co. Ltd. |
1,000 | 14,286 | ||||||
Grand City Properties SA |
2,508 | 64,317 | ||||||
Great Eagle Holdings Ltd.(a) |
143,555 | 395,839 | ||||||
GuocoLand Ltd.* |
36,400 | 45,888 | ||||||
Henderson Land Development Co. Ltd. |
33,239 | 139,296 | ||||||
Hiag Immobilien Holding AG |
355 | 37,685 | ||||||
Ho Bee Land Ltd. |
82,200 | 171,898 | ||||||
Hufvudstaden AB, Class A |
2,610 | 41,694 | ||||||
Hulic Co. Ltd. |
4,900 | 46,970 | ||||||
Hysan Development Co. Ltd. |
19,000 | 66,068 | ||||||
Ichigo, Inc.(a) |
5,500 | 16,400 | ||||||
Immobel SA(a) |
1,100 | 96,873 | ||||||
IMMOFINANZ AG* |
2,253 | 54,023 | ||||||
Intershop Holding AG |
76 | 47,659 | ||||||
Israel Canada T.R Ltd. |
26,616 | 128,660 | ||||||
Isras Investment Co. Ltd. |
312 | 69,687 | ||||||
IWG plc* |
18,668 | 79,198 | ||||||
Jeudan A/S |
560 | 23,869 | ||||||
K Wah International Holdings Ltd. |
409,089 | 163,550 | ||||||
Kerry Properties Ltd. |
38,500 | 108,635 | ||||||
Kowloon Development Co. Ltd. |
180,000 | 213,342 | ||||||
Kungsleden AB(a) |
208 | 2,858 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
LEG Immobilien SE |
1,144 | $ | 170,319 | |||||
Lendlease Corp. Ltd. |
14,937 | 117,353 | ||||||
Mega Or Holdings Ltd. |
3,373 | 133,559 | ||||||
Melisron Ltd.* |
944 | 79,931 | ||||||
Mitsubishi Estate Co. Ltd. |
20,400 | 309,153 | ||||||
Mitsui Fudosan Co. Ltd. |
21,900 | 499,076 | ||||||
Mivne Real Estate KD Ltd. |
14,248 | 51,994 | ||||||
Mobimo Holding AG (Registered)* |
232 | 78,328 | ||||||
New World Development Co. Ltd. |
33,590 | 145,733 | ||||||
Nexity SA |
18,436 | 842,308 | ||||||
Nomura Real Estate Holdings, Inc. |
5,800 | 140,848 | ||||||
NP3 Fastigheter AB |
1,584 | 56,252 | ||||||
OUE Ltd. |
41,600 | 42,572 | ||||||
PATRIZIA AG |
3,248 | 89,834 | ||||||
Property & Building Corp. Ltd.* |
480 | 68,347 | ||||||
PSP Swiss Property AG (Registered) |
531 | 66,480 | ||||||
Real Matters, Inc.* |
423 | 3,088 | ||||||
Relo Group, Inc. |
2,270 | 46,923 | ||||||
S IMMO AG |
2,564 | 60,827 | ||||||
Sagax AB, Class B |
3,740 | 146,317 | ||||||
Samhallsbyggnadsbolaget i Norden AB |
32,240 | 216,222 | ||||||
SAMTY Co. Ltd.(a) |
13,500 | 299,184 | ||||||
Savills plc |
10,452 | 203,158 | ||||||
Sella Capital Real Estate Ltd., REIT |
65,936 | 218,265 | ||||||
Selvaag Bolig ASA |
2,860 | 17,547 | ||||||
Singapore Land Group Ltd. |
5,656 | 11,367 | ||||||
Sino Land Co. Ltd. |
31,136 | 40,906 | ||||||
Sirius Real Estate Ltd. |
90,433 | 167,595 | ||||||
Starts Corp., Inc. |
13,200 | 316,383 | ||||||
Sumitomo Realty & Development Co. Ltd.(a) |
11,800 | 425,328 | ||||||
Summit Real Estate Holdings Ltd.* |
14,606 | 265,623 | ||||||
Sun Hung Kai Properties Ltd. |
31,500 | 419,106 | ||||||
Swire Pacific Ltd., Class A |
3,500 | 22,024 | ||||||
Swire Properties Ltd. |
24,800 | 66,471 | ||||||
Swiss Prime Site AG (Registered) |
1,314 | 133,737 |
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) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
TAG Immobilien AG |
4,270 | $ | 129,862 | |||||
Tokyo Tatemono Co. Ltd. |
9,600 | 140,601 | ||||||
Tokyu Fudosan Holdings Corp. |
20,000 | 115,589 | ||||||
Tricon Residential, Inc. |
87,428 | 1,270,282 | ||||||
UOL Group Ltd. |
15,599 | 83,634 | ||||||
Vonovia SE |
9,122 | 553,791 | ||||||
Wallenstam AB, Class B |
7,068 | 123,773 | ||||||
Wharf Real Estate Investment Co. Ltd. |
25,000 | 141,084 | ||||||
Wihlborgs Fastigheter AB |
5,830 | 137,935 | ||||||
Wing Tai Holdings Ltd. |
59,200 | 85,167 | ||||||
YH Dimri Construction & Development Ltd. |
1,596 | 114,663 | ||||||
Zensun Enterprises Ltd.(a) |
276,000 | 157,531 | ||||||
16,524,037 | ||||||||
Road & Rail – 1.6% | ||||||||
Aurizon Holdings Ltd. |
31,840 | 80,594 | ||||||
Canadian National Railway Co. |
11,044 | 1,465,465 | ||||||
Canadian Pacific Railway Ltd.(a) |
17,072 | 1,319,291 | ||||||
Central Japan Railway Co. |
4,000 | 592,852 | ||||||
ComfortDelGro Corp. Ltd. |
18,400 | 21,286 | ||||||
East Japan Railway Co.(a) |
5,100 | 317,025 | ||||||
Europcar Mobility Group* (b) |
1,340,328 | 782,992 | ||||||
Firstgroup plc* (a) |
533,107 | 736,602 | ||||||
Fukuyama Transporting Co. Ltd. |
1,000 | 39,728 | ||||||
Hamakyorex Co. Ltd.(a) |
7,000 | 193,379 | ||||||
Hankyu Hanshin Holdings, Inc. |
4,600 | 142,206 | ||||||
Hitachi Transport System Ltd. |
2,700 | 106,082 | ||||||
Keikyu Corp.(a) |
1,300 | 14,616 | ||||||
Keio Corp. |
2,800 | 140,952 | ||||||
Keisei Electric Railway Co. Ltd. |
4,500 | 144,245 | ||||||
Kintetsu Group Holdings Co. Ltd.* |
3,900 | 122,276 | ||||||
Kyushu Railway Co. |
2,100 | 46,890 | ||||||
Maruzen Showa Unyu Co. Ltd. |
8,100 | 246,499 | ||||||
MTR Corp. Ltd. |
25,764 | 140,428 | ||||||
Mullen Group Ltd.(a) |
5,238 | 54,089 | ||||||
Nankai Electric Railway Co. Ltd. |
3,000 | 59,329 | ||||||
National Express Group plc* |
55,968 | 175,378 | ||||||
Nikkon Holdings Co. Ltd. |
29,000 | 563,850 |
Investments | Shares | Value | ||||||
Road & Rail – (continued) | ||||||||
Nippon Express Co. Ltd. |
1,600 | $ | 99,908 | |||||
Nishi-Nippon Railroad Co. Ltd.(a) |
1,000 | 24,530 | ||||||
Nobina AB(b) |
29,304 | 280,467 | ||||||
Northgate plc |
107,712 | 587,632 | ||||||
Odakyu Electric Railway Co. Ltd. |
4,600 | 99,362 | ||||||
Sankyu, Inc. |
2,333 | 104,962 | ||||||
SBS Transit Ltd. |
4,000 | 8,928 | ||||||
Seibu Holdings, Inc.* |
2,600 | 28,320 | ||||||
Seino Holdings Co. Ltd. |
7,500 | 90,572 | ||||||
Senko Group Holdings Co. Ltd.(a) |
60,800 | 538,549 | ||||||
Sixt SE* |
550 | 94,773 | ||||||
Sixt SE (Preference) |
298 | 29,520 | ||||||
Stef SA |
1,320 | 165,283 | ||||||
TFI International, Inc. |
2,200 | 243,561 | ||||||
Tobu Railway Co. Ltd. |
4,000 | 99,311 | ||||||
Tokyu Corp. |
8,900 | 125,041 | ||||||
Trancom Co. Ltd. |
600 | 41,885 | ||||||
Transport International Holdings Ltd. |
105,600 | 178,917 | ||||||
West Japan Railway Co. |
4,400 | 206,948 | ||||||
10,554,523 | ||||||||
Semiconductors & Semiconductor Equipment – 1.9% | ||||||||
Advantest Corp. |
3,100 | 253,655 | ||||||
AIXTRON SE |
7,964 | 189,396 | ||||||
ams AG* (a) |
8,459 | 167,467 | ||||||
ASM International NV |
836 | 378,664 | ||||||
ASM Pacific Technology Ltd. |
5,000 | 54,023 | ||||||
ASML Holding NV |
7,128 | 5,778,339 | ||||||
BE Semiconductor Industries NV |
2,068 | 188,967 | ||||||
Disco Corp. |
700 | 187,854 | ||||||
Ferrotec Holdings Corp. |
13,200 | 439,904 | ||||||
Infineon Technologies AG |
22,616 | 1,057,233 | ||||||
Japan Material Co. Ltd. |
3,900 | 54,109 | ||||||
Lasertec Corp. |
1,000 | 219,513 | ||||||
Melexis NV |
495 | 57,055 | ||||||
Mimasu Semiconductor Industry Co. Ltd. |
200 | 4,366 | ||||||
Mitsui High-Tec, Inc.(a) |
2,600 | 200,658 | ||||||
Nordic Semiconductor ASA* |
5,500 | 162,543 |
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) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Renesas Electronics Corp.* |
28,800 | $ | 354,112 | |||||
Rohm Co. Ltd. |
2,000 | 182,065 | ||||||
SCREEN Holdings Co. Ltd. |
1,800 | 166,858 | ||||||
Shinko Electric Industries Co. Ltd. |
1,400 | 55,988 | ||||||
Siltronic AG |
405 | 63,179 | ||||||
SOITEC* |
748 | 198,920 | ||||||
STMicroelectronics NV |
11,836 | 560,421 | ||||||
SUMCO Corp. |
7,800 | 148,031 | ||||||
Tokyo Electron Ltd. |
2,700 | 1,251,436 | ||||||
Tower Semiconductor Ltd.* |
3,423 | 111,358 | ||||||
Ulvac, Inc. |
1,700 | 94,821 | ||||||
12,580,935 | ||||||||
Software – 1.3% | ||||||||
Altium Ltd. |
1,716 | 47,328 | ||||||
AVEVA Group plc |
3,354 | 163,579 | ||||||
BlackBerry Ltd.* (a) |
8,682 | 93,646 | ||||||
Blue Prism Group plc* |
10,248 | 158,596 | ||||||
Constellation Software, Inc. |
356 | 624,659 | ||||||
Dassault Systemes SE |
11,320 | 659,981 | ||||||
Descartes Systems Group, Inc. (The)* |
832 | 67,839 | ||||||
Dye & Durham Ltd. |
3,388 | 103,508 | ||||||
Enghouse Systems Ltd. |
1,300 | 56,287 | ||||||
FD Technologies plc* |
3,344 | 95,801 | ||||||
Fuji Soft, Inc. |
1,600 | 81,105 | ||||||
GB Group plc |
17,952 | 218,147 | ||||||
Hilan Ltd. |
1,569 | 86,978 | ||||||
IRESS Ltd. |
19,140 | 172,513 | ||||||
Kinaxis, Inc.* |
520 | 80,579 | ||||||
Learning Technologies Group plc |
64,284 | 172,534 | ||||||
Lightspeed Commerce, Inc.* (a) |
2,184 | 212,542 | ||||||
Micro Focus International plc |
129,228 | 631,856 | ||||||
Miroku Jyoho Service Co. Ltd.(a) |
1,000 | 15,725 | ||||||
Nemetschek SE |
884 | 101,482 | ||||||
Nice Ltd.* |
1,189 | 335,286 | ||||||
Open Text Corp. |
3,696 | 185,881 | ||||||
Oracle Corp. Japan |
800 | 75,422 | ||||||
PKSHA Technology, Inc.* (a) |
4,400 | 68,648 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
Sage Group plc (The) |
16,500 | $ | 160,764 | |||||
SAP SE |
18,392 | 2,667,329 | ||||||
SimCorp A/S |
1,100 | 133,026 | ||||||
Sinch AB* (b) |
7,462 | 141,490 | ||||||
Software AG |
1,320 | 54,320 | ||||||
Systena Corp. |
5,200 | 95,586 | ||||||
Technology One Ltd. |
7,884 | 72,304 | ||||||
Temenos AG (Registered)(a) |
765 | 117,084 | ||||||
Trend Micro, Inc.(a) |
2,500 | 140,978 | ||||||
Vitec Software Group AB, Class B |
3,300 | 194,807 | ||||||
Vobile Group Ltd.* (b) |
46,000 | 40,388 | ||||||
WiseTech Global Ltd. |
4,739 | 181,817 | ||||||
8,509,815 | ||||||||
Specialty Retail – 1.9% | ||||||||
ABC-Mart, Inc. |
700 | 33,458 | ||||||
Adairs Ltd.(a) |
76,956 | 213,288 | ||||||
Adastria Co. Ltd. |
13,200 | 244,841 | ||||||
Alpen Co. Ltd.(a) |
200 | 4,866 | ||||||
Arcland Sakamoto Co. Ltd.(a) |
12,700 | 189,456 | ||||||
Aritzia, Inc.* |
2,860 | 112,457 | ||||||
Autobacs Seven Co. Ltd. |
2,100 | 27,110 | ||||||
Bic Camera, Inc.(a) |
4,100 | 35,274 | ||||||
Bilia AB, Class A |
33,880 | 601,583 | ||||||
CECONOMY AG* |
64,548 | 314,629 | ||||||
Clas Ohlson AB, Class B |
13,508 | 145,327 | ||||||
Currys plc |
410,916 | 683,801 | ||||||
DCM Holdings Co. Ltd. |
2,400 | 23,342 | ||||||
Delek Automotive Systems Ltd. |
17,264 | 226,242 | ||||||
Dufry AG (Registered)* |
1,188 | 62,901 | ||||||
Dunelm Group plc |
2,604 | 45,653 | ||||||
Eagers Automotive Ltd.(a) |
4,180 | 46,529 | ||||||
EDION Corp. |
30,800 | 291,725 | ||||||
Fast Retailing Co. Ltd. |
1,100 | 728,445 | ||||||
Fenix Outdoor International AG |
369 | 54,307 | ||||||
Fielmann AG |
607 | 40,040 | ||||||
Fnac Darty SA |
6,336 | 410,977 | ||||||
Fox Wizel Ltd. |
123 | 16,968 | ||||||
GrandVision NV(b) |
1,506 | 49,496 | ||||||
H & M Hennes & Mauritz AB, Class B(a) |
11,440 | 214,481 |
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) | ||||||||
Specialty Retail – (continued) | ||||||||
Halfords Group plc |
87,736 | $ | 320,384 | |||||
Hikari Tsushin, Inc. |
600 | 92,348 | ||||||
Hornbach Baumarkt AG |
748 | 33,629 | ||||||
Hornbach Holding AG & Co. KGaA |
3,784 | 478,628 | ||||||
IDOM, Inc. |
20,000 | 136,461 | ||||||
Industria de Diseno Textil SA(a) |
17,072 | 617,195 | ||||||
JB Hi-Fi Ltd.(a) |
2,881 | 109,256 | ||||||
JD Sports Fashion plc |
8,827 | 131,644 | ||||||
JINS Holdings, Inc.(a) |
900 | 56,751 | ||||||
Joshin Denki Co. Ltd.(a) |
8,800 | 182,598 | ||||||
Joyful Honda Co. Ltd. |
28,400 | 389,294 | ||||||
Kathmandu Holdings Ltd. |
266,816 | 303,605 | ||||||
Kid ASA(b) |
8,096 | 108,147 | ||||||
Kingfisher plc |
45,013 | 206,700 | ||||||
Kohnan Shoji Co. Ltd. |
8,800 | 274,361 | ||||||
Kojima Co. Ltd.(a) |
13,200 | 67,722 | ||||||
Komeri Co. Ltd. |
13,200 | 304,460 | ||||||
K’s Holdings Corp. |
6,100 | 62,805 | ||||||
Leon’s Furniture Ltd. |
12,116 | 246,318 | ||||||
Luk Fook Holdings International Ltd. |
104,672 | 285,932 | ||||||
Mekonomen AB* |
16,060 | 330,980 | ||||||
Nafco Co. Ltd. |
4,400 | 66,449 | ||||||
Nick Scali Ltd. |
12,374 | 134,486 | ||||||
Nishimatsuya Chain Co. Ltd.(a) |
1,300 | 16,531 | ||||||
Nitori Holdings Co. Ltd. |
1,600 | 292,638 | ||||||
Nojima Corp. |
17,600 | 384,800 | ||||||
PAL GROUP Holdings Co. Ltd. |
8,800 | 126,955 | ||||||
Pets at Home Group plc |
11,308 | 74,774 | ||||||
Premier Investments Ltd. |
5,764 | 132,391 | ||||||
Sanrio Co. Ltd. |
4,200 | 93,743 | ||||||
Super Retail Group Ltd.(a) |
5,324 | 51,705 | ||||||
T-Gaia Corp. |
9,800 | 174,299 | ||||||
United Arrows Ltd.(a) |
4,400 | 87,788 | ||||||
USS Co. Ltd. |
1,000 | 16,049 | ||||||
Vivo Energy plc(b) |
154,220 | 223,235 | ||||||
Watches of Switzerland Group plc* (c) |
10,868 | 168,638 | ||||||
WH Smith plc* |
3,950 | 84,574 | ||||||
Yamada Holdings Co. Ltd.(a) |
17,300 | 65,999 | ||||||
Yellow Hat Ltd.(a) |
17,800 | 289,577 | ||||||
12,041,045 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – 0.5% | ||||||||
Brother Industries Ltd. |
7,600 | $ | 146,501 | |||||
Canon, Inc.(a) |
16,800 | 376,886 | ||||||
Eizo Corp.(a) |
10,100 | 385,310 | ||||||
Elecom Co. Ltd. |
1,600 | 24,416 | ||||||
FUJIFILM Holdings Corp. |
6,700 | 517,138 | ||||||
Konica Minolta, Inc. |
1,300 | 6,407 | ||||||
Logitech International SA (Registered) |
3,109 | 259,336 | ||||||
Maxell Ltd. |
26,400 | 316,499 | ||||||
MCJ Co. Ltd. |
30,800 | 346,019 | ||||||
Quadient SA |
14,740 | 352,415 | ||||||
Ricoh Co. Ltd. |
17,200 | 166,834 | ||||||
Riso Kagaku Corp. |
1,700 | 35,752 | ||||||
Seiko Epson Corp. |
8,300 | 147,475 | ||||||
Toshiba TEC Corp. |
1,100 | 43,122 | ||||||
3,124,110 | ||||||||
Textiles, Apparel & Luxury Goods – 1.9% | ||||||||
adidas AG |
3,036 | 995,349 | ||||||
Asics Corp. |
5,200 | 129,151 | ||||||
Brunello Cucinelli SpA* |
1,368 | 82,955 | ||||||
Burberry Group plc |
7,700 | 203,602 | ||||||
Canada Goose Holdings, Inc.* |
5,852 | 216,697 | ||||||
Chow Sang Sang Holdings International Ltd. |
152,000 | 216,109 | ||||||
Cie Financiere Richemont SA (Registered) |
8,888 | 1,100,118 | ||||||
Coats Group plc |
98,856 | 87,266 | ||||||
Crystal International Group Ltd.(b) |
369,500 | 118,748 | ||||||
Delta Galil Industries Ltd. |
4,626 | 237,246 | ||||||
Descente Ltd.* |
2,400 | 90,506 | ||||||
EssilorLuxottica SA – IM |
2,578 | 533,072 | ||||||
EssilorLuxottica SA – MO |
2,934 | 607,432 | ||||||
Gildan Activewear, Inc. |
2,703 | 99,131 | ||||||
Goldwin, Inc. |
1,900 | 114,475 | ||||||
Gunze Ltd. |
5,100 | 196,128 | ||||||
Hermes International |
529 | 839,000 | ||||||
HUGO BOSS AG |
1,980 | 123,871 | ||||||
Japan Wool Textile Co. Ltd. (The) |
24,400 | 194,301 | ||||||
Kering SA |
1,232 | 924,160 | ||||||
LVMH Moet Hennessy Louis Vuitton SE |
4,488 | 3,517,199 |
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) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Moncler SpA |
3,061 | $ | 220,050 | |||||
Pacific Textiles Holdings Ltd.(a) |
308,000 | 153,623 | ||||||
Pandora A/S |
1,848 | 258,326 | ||||||
Puma SE |
1,760 | 218,544 | ||||||
Samsonite International SA* (a) (b) |
118,200 | 254,662 | ||||||
Seiko Holdings Corp. |
4,700 | 98,967 | ||||||
Seiren Co. Ltd. |
25,600 | 515,031 | ||||||
Stella International Holdings Ltd. |
110,500 | 131,679 | ||||||
Swatch Group AG (The)(a) |
364 | 100,068 | ||||||
Swatch Group AG (The) (Registered) |
8 | 426 | ||||||
Tod’s SpA* |
245 | 13,519 | ||||||
Wacoal Holdings Corp. |
1,500 | 29,915 | ||||||
12,621,326 | ||||||||
Thrifts & Mortgage Finance – 0.7% | ||||||||
Aareal Bank AG |
26,708 | 854,292 | ||||||
Aruhi Corp.(a) |
17,600 | 203,745 | ||||||
Deutsche Pfandbriefbank AG(b) |
43,296 | 537,369 | ||||||
Equitable Group, Inc. |
9,064 | 565,170 | ||||||
Genworth Mortgage Insurance Australia Ltd. |
204,248 | 352,845 | ||||||
Home Capital Group, Inc.* (a) |
22,616 | 732,732 | ||||||
OSB Group plc |
19,688 | 136,286 | ||||||
Paragon Banking Group plc |
101,332 | 761,871 | ||||||
Resimac Group Ltd.(a) |
81,400 | 104,549 | ||||||
4,248,859 | ||||||||
Tobacco – 0.5% | ||||||||
British American Tobacco plc |
51,920 | 1,812,327 | ||||||
Imperial Brands plc |
18,304 | 386,891 | ||||||
Japan Tobacco, Inc. |
22,000 | 431,318 | ||||||
Scandinavian Tobacco Group A/S(a) (b) |
20,153 | 453,324 | ||||||
Swedish Match AB |
33,000 | 290,404 | ||||||
3,374,264 | ||||||||
Trading Companies & Distributors – 1.8% | ||||||||
AddTech AB, Class B |
2,196 | 49,093 | ||||||
Ashtead Group plc |
6,424 | 539,261 | ||||||
Beijer Ref AB |
2,340 | 48,061 |
Investments | Shares | Value | ||||||
Trading Companies & Distributors – (continued) | ||||||||
Brenntag SE |
2,205 | $ | 209,855 | |||||
Bunzl plc |
5,984 | 221,633 | ||||||
Electrocomponents plc |
2,548 | 39,293 | ||||||
Ferguson plc |
3,564 | 537,145 | ||||||
Finning International, Inc. |
4,111 | 121,517 | ||||||
Grafton Group plc |
7,976 | 146,613 | ||||||
Hanwa Co. Ltd. |
17,600 | 525,569 | ||||||
Howden Joinery Group plc |
15,972 | 201,377 | ||||||
IMCD NV |
1,360 | 302,260 | ||||||
Inaba Denki Sangyo Co. Ltd. |
19,200 | 459,015 | ||||||
Inabata & Co. Ltd. |
13,400 | 198,018 | ||||||
ITOCHU Corp.(a) |
36,300 | 1,032,095 | ||||||
Japan Pulp & Paper Co. Ltd.(a) |
6,100 | 205,429 | ||||||
Kanamoto Co. Ltd.(a) |
14,323 | 305,742 | ||||||
Kanematsu Corp.(a) |
30,800 | 356,553 | ||||||
Kloeckner & Co. SE* |
30,228 | 407,183 | ||||||
Marubeni Corp. |
47,000 | 396,197 | ||||||
Mitsubishi Corp. |
35,200 | 1,115,040 | ||||||
Mitsui & Co. Ltd. |
36,000 | 818,347 | ||||||
MonotaRO Co. Ltd. |
5,600 | 126,709 | ||||||
Nagase & Co. Ltd. |
4,900 | 82,594 | ||||||
Nippon Steel Trading Corp. |
5,000 | 225,389 | ||||||
Nishio Rent All Co. Ltd.(a) |
5,700 | 140,419 | ||||||
Reece Ltd.(a) |
5,999 | 89,621 | ||||||
Rexel SA* |
4,641 | 92,163 | ||||||
Richelieu Hardware Ltd. |
1,340 | 47,231 | ||||||
Russel Metals, Inc.(a) |
21,692 | 571,022 | ||||||
Seven Group Holdings Ltd. |
104 | 1,682 | ||||||
Sojitz Corp. |
6,899 | 113,445 | ||||||
Sumitomo Corp. |
24,200 | 343,183 | ||||||
Theme International Holdings Ltd.* (a) |
1,320,000 | 161,202 | ||||||
Toromont Industries Ltd. |
2,360 | 209,640 | ||||||
Toyota Tsusho Corp. |
5,300 | 229,151 | ||||||
Travis Perkins plc |
7,703 | 162,924 | ||||||
Wakita & Co. Ltd. |
26,400 | 238,474 | ||||||
Yamazen Corp.(a) |
33,000 | 304,460 | ||||||
Yuasa Trading Co. Ltd. |
8,800 | 234,229 | ||||||
11,608,834 | ||||||||
Transportation Infrastructure – 0.4% | ||||||||
Aena SME SA* (a) (b) |
1,100 | 180,317 | ||||||
Aeroports de Paris* |
555 | 73,797 |
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) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Atlantia SpA* |
3,344 | $ | 64,646 | |||||
Atlas Arteria Ltd.(a) |
25,621 | 119,312 | ||||||
Auckland International Airport Ltd.* (a) |
22,876 | 130,806 | ||||||
Enav SpA* (b) |
12,657 | 55,513 | ||||||
Flughafen Zurich AG (Registered)* (a) |
320 | 57,784 | ||||||
Fraport AG Frankfurt Airport Services Worldwide* |
890 | 63,548 | ||||||
Getlink SE |
8,876 | 136,460 | ||||||
Hamburger Hafen und Logistik AG |
1,220 | 27,376 | ||||||
Kamigumi Co. Ltd. |
800 | 16,046 | ||||||
Port of Tauranga Ltd. |
5,225 | 25,801 | ||||||
Qube Holdings Ltd. |
55,759 | 133,180 | ||||||
SATS Ltd.* |
19,000 | 59,036 | ||||||
Sumitomo
Warehouse Co. Ltd. |
26,400 | 422,770 | ||||||
Sydney Airport* |
7,964 | 48,991 | ||||||
Transurban Group |
50,308 | 507,848 | ||||||
Westshore Terminals Investment Corp. |
16,456 | 355,393 | ||||||
2,478,624 | ||||||||
Water Utilities – 0.1% | ||||||||
Pennon Group plc |
2,970 | 47,469 | ||||||
Severn Trent plc |
5,280 | 198,165 | ||||||
United Utilities Group plc |
11,220 | 159,719 | ||||||
405,353 | ||||||||
Wireless Telecommunication Services – 0.8% | ||||||||
Airtel Africa plc(b) |
34,804 | 52,287 | ||||||
Cellcom Israel Ltd.* |
10,252 | 38,776 | ||||||
Freenet AG |
2,198 | 56,672 | ||||||
KDDI Corp. |
41,400 | 1,280,940 | ||||||
Okinawa Cellular Telephone Co. |
4,400 | 197,957 | ||||||
Orange Belgium SA |
1,188 | 27,001 | ||||||
Rogers Communications, Inc., Class B |
6,820 | 316,695 | ||||||
SoftBank Corp. |
70,500 | 961,125 | ||||||
SoftBank Group Corp. |
22,582 | 1,220,745 | ||||||
Tele2 AB, Class B(a) |
11,244 | 158,609 |
Investments | Shares | Value | ||||||
Wireless Telecommunication Services – (continued) | ||||||||
Vodafone Group plc |
584,320 | $ | 865,353 | |||||
5,176,160 | ||||||||
Total Common
Stocks (Cost $501,068,108) |
635,576,607 | |||||||
CLOSED END FUNDS – 0.0%(f) | ||||||||
Independent Power and Renewable Electricity Producers – 0.0%(f) |
||||||||
Renewables Infrastructure Group Ltd. (The) (Cost $88,261) |
58,642 | 106,428 | ||||||
Principal Amount |
||||||||
CONVERTIBLE BONDS – 0.0%(f) | ||||||||
Airlines – 0.0%(f) | ||||||||
Singapore Airlines Ltd. Zero Coupon, 6/8/2030 (Cost $11,323) |
SGD | 14,885 | 10,122 | |||||
Number of Warrants |
||||||||
WARRANTS – 0.0% | ||||||||
Construction & Engineering – 0.0% | ||||||||
Webuild
SpA, expiring 8/2/2030* ‡ (d) |
10,785 | — | ||||||
Principal Amount |
||||||||
SECURITIES LENDING REINVESTMENTS(g) – 2.1% | ||||||||
REPURCHASE AGREEMENTS – 2.1% | ||||||||
Cantor Fitzgerald & Co., Inc., 0.05%, dated 10/31/2021, due 11/1/2021, repurchase price $2,000,003, collateralized by various Mortgage-Backed Securities, ranging from 1.50% – 6.00%, maturing 7/1/2036 – 12/15/2062; total market value $2,744,553 |
$ | 2,000,000 | 2,000,000 |
See Accompanying Notes to the Financial Statements.
214 | 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) | ||||||||
Citigroup Global Markets, Inc., 0.05%, dated 10/31/2021, due 11/1/2021, repurchase price $11,300,711, collateralized by various U.S. Treasury Securities, ranging from 0.75% – 4.63%, maturing 2/15/2040 – 2/15/2042; total market value $11,402,654 |
$ | 11,300,695 | $ | 11,300,695 | ||||
13,300,695 | ||||||||
Total
Securities Lending Reinvestments (Cost $13,300,695) |
|
13,300,695 | ||||||
Total
Investments – 100.1% (Cost $514,468,387) |
|
648,993,852 | ||||||
Liabilities in excess of other assets – (0.1%) |
|
(355,359 | ) | |||||
Net Assets – 100.0% |
|
$ | 648,638,493 |
* |
Non-income producing security. |
‡ |
Value determined using significant unobservable inputs. |
(a) |
The security or a portion of this security is on loan at October 31, 2021. The total value of securities on loan at October 31, 2021 was $66,431,697, collateralized in the form of cash with a value of $13,300,695 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $31,611,651 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.88%, and maturity dates ranging from November 4, 2021 – August 15, 2051 and $27,449,051 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from November 17, 2021 – June 30, 2120; a total value of $72,361,397. |
(b) |
Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) |
Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(d) |
Security fair valued as of October 31, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at October 31, 2021 amounted to $1,640,185, which represents approximately 0.25% of net assets of the Fund. |
(e) |
Amount represents less than one share. |
(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, 2021. The total value of securities purchased was $13,300,695. |
Percentages shown are based on Net Assets.
Abbreviations
CHDI – Clearing House Electronic Subregister System (CHESS) Depository Interest
CVA – Dutch Certification
DI – Depositary Interest
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, 2021, 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 |
$ | 158,796,866 | ||
Aggregate gross unrealized depreciation |
(31,913,558 | ) | ||
Net unrealized appreciation |
$ | 126,883,308 | ||
Federal income tax cost |
$ | 522,105,888 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 215 |
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, 2021:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Appreciation/ (Depreciation)* |
||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index |
69 | 12/17/2021 | EUR | $ | 3,383,255 | $ | 73,393 | |||||||||||||
FTSE 100 Index |
30 | 12/17/2021 | GBP | 2,970,689 | 79,924 | |||||||||||||||
Hang Seng Index |
1 | 11/29/2021 | HKD | 162,642 | (4,427 | ) | ||||||||||||||
Nikkei 225 Index |
28 | 12/09/2021 | JPY | 3,534,225 | (71,424 | ) | ||||||||||||||
S&P/TSX 60 Index |
9 | 12/16/2021 | CAD | 1,830,422 | 53,063 | |||||||||||||||
SPI 200 Index |
8 | 12/16/2021 | AUD | 1,093,602 | (12,440 | ) | ||||||||||||||
$ | 118,089 |
* |
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, 2021:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||
AUD |
568,763 | Morgan Stanley | USD | 420,596 | 12/15/2021 | $ | 6,675 | |||||||||||||||
CAD |
1,644,150 | Citibank NA | USD | 1,296,907 | 12/15/2021 | 29,600 | ||||||||||||||||
NOK |
1,450,557 | BNP Paribas SA | USD | 166,712 | 12/15/2021 | 4,706 | ||||||||||||||||
SEK |
554,576 | Morgan Stanley | USD | 64,470 | 12/15/2021 | 143 | ||||||||||||||||
USD |
424,737 | Bank of New York | DKK | 2,668,253 | 12/15/2021 | 9,200 | ||||||||||||||||
USD |
2,044,805 | Toronto-Dominion Bank (The) | EUR | 1,760,000 | 12/15/2021 | 5,876 | ||||||||||||||||
USD |
962,399 | Toronto-Dominion Bank (The) | GBP | 700,000 | 12/15/2021 | 2,719 | ||||||||||||||||
USD |
219,968 | Toronto-Dominion Bank (The) | SGD | 296,100 | 12/15/2021 | 434 | ||||||||||||||||
Total unrealized appreciation |
|
$ | 59,353 | |||||||||||||||||||
EUR |
1,317,687 | JPMorgan Chase Bank | USD | 1,561,790 | 12/15/2021 | $ | (35,273 | ) | ||||||||||||||
EUR |
1,400,000 | Toronto-Dominion Bank (The) | USD | 1,645,889 | 12/15/2021 | (24,013 | ) | |||||||||||||||
GBP |
763,203 | Morgan Stanley | USD | 1,056,781 | 12/15/2021 | (10,451 | ) | |||||||||||||||
HKD |
7,052,598 | Citibank NA | USD | 907,107 | 12/15/2021 | (385 | ) | |||||||||||||||
JPY |
290,750,889 | Toronto-Dominion Bank (The) | USD | 2,647,757 | 12/15/2021 | (96,590 | ) | |||||||||||||||
USD |
503,199 | JPMorgan Chase Bank | CHF | 460,788 | 12/15/2021 | (1,746 | ) | |||||||||||||||
USD |
534,563 | Goldman Sachs & Co. | ILS | 1,713,030 | 12/15/2021 | (8,238 | ) | |||||||||||||||
USD |
3,264,088 | Toronto-Dominion Bank (The) | JPY | 372,170,000 | 12/15/2021 | (1,484 | ) | |||||||||||||||
USD |
504,606 | Goldman Sachs & Co. | NZD | 711,055 | 12/15/2021 | (3,918 | ) | |||||||||||||||
Total unrealized depreciation |
|
$ | (182,098 | ) | ||||||||||||||||||
Net unrealized depreciation |
|
$ | (122,745 | ) |
See Accompanying Notes to the Financial Statements.
216 | 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, 2021:
Australia |
5.6 | % | ||
Austria |
0.4 | |||
Belgium |
1.3 | |||
Canada |
10.6 | |||
Denmark |
1.9 | |||
Finland |
0.9 | |||
France |
7.2 | |||
Germany |
6.2 | |||
Hong Kong |
2.4 | |||
Ireland |
0.3 | |||
Israel |
1.3 | |||
Italy |
2.4 | |||
Japan |
25.9 | |||
Netherlands |
3.1 | |||
New Zealand |
0.4 | |||
Norway |
1.3 | |||
Poland |
0.6 | |||
Portugal |
0.4 | |||
Singapore |
1.1 | |||
Spain |
2.2 | |||
Sweden |
3.7 | |||
Switzerland |
5.7 | |||
United Kingdom |
13.1 | |||
United States |
0.0 | † | ||
Other1 |
2.0 | |||
100.0 | % |
† |
Amount represents less than 0.05%. |
1 |
Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 217 |
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Security Type | % of Net Assets | |||
Common Stocks |
98.0 | % | ||
Closed End Funds |
0.0 | † | ||
Convertible Bonds |
0.0 | † | ||
Warrants |
0.0 | † | ||
Securities Lending Reinvestments |
2.1 | |||
Others(1) |
(0.1 | ) | ||
100.0 | % |
† |
Amount represents less than 0.05%. |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
218 | FLEXSHARES ANNUAL REPORT |
Schedule of Investments
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund
October 31, 2021
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.5% | ||||||||
Aerospace & Defense – 0.2% | ||||||||
AECC Aviation Power Co. Ltd., Class A |
4,700 | $ | 43,450 | |||||
Aselsan Elektronik Sanayi ve Ticaret A/S |
24,132 | 41,236 | ||||||
AVIC Electromechanical Systems Co. Ltd., Class A |
5,300 | 12,589 | ||||||
AviChina Industry & Technology Co. Ltd., Class H |
41,000 | 26,142 | ||||||
Bharat Electronics Ltd. |
17,280 | 47,734 | ||||||
Hanwha Aerospace Co. Ltd. |
899 | 34,620 | ||||||
Hanwha Systems Co. Ltd. |
689 | 9,669 | ||||||
Hindustan Aeronautics Ltd.(a) |
2,256 | 39,365 | ||||||
Korea Aerospace Industries Ltd. |
1,608 | 42,039 | ||||||
LIG Nex1 Co. Ltd. |
6,112 | 243,737 | ||||||
United Aircraft Corp. PJSC* ^ |
25,155,036 | 254,701 | ||||||
795,282 | ||||||||
Air Freight & Logistics – 0.5% | ||||||||
Agility Public Warehousing Co. KSC |
47,910 | 158,932 | ||||||
Aramex PJSC |
358,985 | 427,090 | ||||||
Blue Dart Express Ltd. |
265 | 23,550 | ||||||
Hanjin Transportation Co. Ltd. |
5,005 | 148,409 | ||||||
Hyundai Glovis Co. Ltd. |
770 | 110,372 | ||||||
Imperial Logistics Ltd. |
95,590 | 394,309 | ||||||
Kerry TJ Logistics Co. Ltd. |
4,000 | 6,235 | ||||||
SF Holding Co. Ltd., Class A |
5,500 | 55,547 | ||||||
Sinotrans Ltd., Class A |
23,500 | 16,599 | ||||||
Sinotrans Ltd., Class H |
83,000 | 27,208 | ||||||
YTO Express Group Co. Ltd., Class A |
4,700 | 10,723 | ||||||
Yunda Holding Co. Ltd., Class A |
10,600 | 30,925 | ||||||
ZTO Express Cayman, Inc., ADR |
12,705 | 372,638 | ||||||
1,782,537 | ||||||||
Airlines – 0.3% | ||||||||
Aeroflot PJSC* |
74,029 | 71,753 | ||||||
Air Arabia PJSC* |
136,316 | 51,585 |
Investments | Shares | Value | ||||||
Airlines – (continued) | ||||||||
AirAsia Group Bhd.* |
174,900 | $ | 48,994 | |||||
Asiana Airlines, Inc.* |
19,494 | 376,184 | ||||||
Azul SA (Preference)* |
11,700 | 51,620 | ||||||
China Airlines Ltd.* |
84,000 | 51,955 | ||||||
China Eastern Airlines Corp. Ltd., Class A* |
14,300 | 10,793 | ||||||
China Southern Airlines Co. Ltd., Class A* |
14,100 | 14,454 | ||||||
Controladora Vuela Cia de Aviacion SAB de CV, Class A* |
38,500 | 70,186 | ||||||
Eva Airways Corp.* |
74,798 | 50,702 | ||||||
Gol Linhas Aereas Inteligentes SA (Preference)* |
10,600 | 28,545 | ||||||
Hanjin Kal Corp.* |
273 | 12,803 | ||||||
InterGlobe Aviation Ltd.* (a) |
2,103 | 61,089 | ||||||
Jeju Air Co. Ltd.* |
1,962 | 36,770 | ||||||
Jin Air Co. Ltd.* |
583 | 10,502 | ||||||
Korean Air Lines Co. Ltd.* |
3,747 | 97,639 | ||||||
Pegasus Hava Tasimaciligi A/S* |
2,391 | 19,807 | ||||||
Turk Hava Yollari AO* |
16,292 | 25,365 | ||||||
1,090,746 | ||||||||
Auto Components – 1.1% | ||||||||
Apollo Tyres Ltd. |
170,665 | 485,229 | ||||||
Balkrishna Industries Ltd. |
1,925 | 63,243 | ||||||
Bharat Forge Ltd. |
6,473 | 66,315 | ||||||
Bosch Ltd. |
208 | 47,089 | ||||||
Cayman Engley Industrial Co. Ltd. |
28,000 | 65,448 | ||||||
Cheng Shin Rubber Industry Co. Ltd. |
55,000 | 67,443 | ||||||
Endurance Technologies Ltd.(a) |
1,456 | 35,403 | ||||||
Exide Industries Ltd. |
28,330 | 65,414 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class A |
4,800 | 37,054 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class H(a) |
8,400 | 48,484 | ||||||
Hankook & Co. Co Ltd. |
907 | 12,962 | ||||||
Hankook Tire & Technology Co. Ltd. |
2,792 | 98,797 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 219 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Hanon Systems |
2,756 | $ | 33,962 | |||||
Hota Industrial Manufacturing Co. Ltd. |
16,134 | 54,363 | ||||||
Huayu Automotive Systems Co. Ltd., Class A |
9,400 | 39,279 | ||||||
Hyundai Mobis Co. Ltd. |
2,310 | 498,156 | ||||||
Hyundai Wia Corp. |
583 | 41,958 | ||||||
Kumho Tire Co., Inc.* |
59,896 | 274,223 | ||||||
Mando Corp.* |
1,155 | 61,677 | ||||||
Minda Industries Ltd. |
6,270 | 65,441 | ||||||
Minth Group Ltd. |
12,000 | 47,975 | ||||||
Motherson Sumi Systems Ltd. |
28,296 | 84,437 | ||||||
MRF Ltd. |
38 | 39,232 | ||||||
Myoung Shin Industrial Co. Ltd.* |
220 | 5,516 | ||||||
Nan Kang Rubber Tire Co. Ltd. |
14,000 | 20,138 | ||||||
Nexen Tire Corp. |
18,935 | 122,663 | ||||||
Nexteer Automotive Group Ltd.(b) |
28,000 | 34,554 | ||||||
Ningbo Joyson Electronic Corp., Class A |
4,700 | 13,022 | ||||||
S&T Motiv Co. Ltd. |
4,400 | 189,397 | ||||||
Sri Trang Agro-Industry PCL, NVDR |
28,200 | 27,620 | ||||||
Sundram Fasteners Ltd. |
5,005 | 55,844 | ||||||
Tianneng
Power International |
378,000 | 431,983 | ||||||
Tong Yang Industry Co. Ltd. |
220,000 | 267,400 | ||||||
Tube Investments of India Ltd. |
1,200 | 22,379 | ||||||
Weifu High-Technology Group Co. Ltd., Class A |
4,700 | 14,271 | ||||||
3,538,371 | ||||||||
Automobiles – 2.6% | ||||||||
Astra International Tbk. PT |
643,500 | 273,661 | ||||||
BAIC Motor Corp. Ltd., Class H(a) |
828,000 | 274,615 | ||||||
Bajaj Auto Ltd. |
1,289 | 63,816 | ||||||
Brilliance China Automotive Holdings Ltd.* (c) |
96,000 | 31,776 | ||||||
BYD Co. Ltd., Class A |
2,400 | 116,754 | ||||||
BYD Co. Ltd., Class H |
15,000 | 571,921 |
Investments | Shares | Value | ||||||
Automobiles – (continued) | ||||||||
China Motor Corp. |
5,400 | $ | 13,457 | |||||
Chongqing Changan Automobile Co. Ltd., Class A |
13,160 | 40,101 | ||||||
Chongqing Changan Automobile Co. Ltd., Class B |
5,300 | 3,420 | ||||||
Dongfeng Motor Group Co. Ltd., Class H |
1,254,000 | 1,171,940 | ||||||
DRB-Hicom Bhd. |
396,000 | 157,788 | ||||||
Eicher Motors Ltd. |
2,770 | 91,917 | ||||||
Ford Otomotiv Sanayi A/S |
3,376 | 65,166 | ||||||
Geely Automobile Holdings Ltd. |
110,000 | 382,502 | ||||||
Great Wall Motor Co. Ltd., Class A |
4,700 | 49,943 | ||||||
Great Wall Motor Co. Ltd., Class H(b) |
55,000 | 248,167 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H |
110,000 | 104,074 | ||||||
Hero MotoCorp Ltd. |
2,255 | 80,017 | ||||||
Hyundai Motor Co. |
4,950 | 881,092 | ||||||
Hyundai Motor Co. (2nd Preference) |
1,265 | 105,981 | ||||||
Hyundai Motor Co. (3rd Preference) |
54 | 4,298 | ||||||
Hyundai Motor Co. (Preference) |
715 | 59,657 | ||||||
Kia Corp. |
9,350 | 680,917 | ||||||
Li Auto, Inc., ADR* (b) |
6,105 | 199,206 | ||||||
Mahindra & Mahindra Ltd. |
17,380 | 205,235 | ||||||
Maruti Suzuki India Ltd. |
2,475 | 247,311 | ||||||
NIO, Inc., ADR* |
27,500 | 1,083,775 | ||||||
Niu Technologies, ADR* |
2,730 | 71,471 | ||||||
Oriental Holdings Bhd. |
30,500 | 39,331 | ||||||
SAIC Motor Corp. Ltd., Class A |
27,500 | 87,150 | ||||||
Sanyang Motor Co. Ltd. |
330,000 | 320,999 | ||||||
Tata Motors Ltd.* |
61,435 | 396,843 | ||||||
Tata Motors Ltd., Class A* |
14,002 | 45,999 | ||||||
Tofas Turk Otomobil Fabrikasi A/S |
3,233 | 19,771 | ||||||
TVS Motor Co. Ltd. |
3,564 | 31,534 | ||||||
UMW Holdings Bhd. |
209,000 | 172,106 |
See Accompanying Notes to the Financial Statements.
220 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Automobiles – (continued) | ||||||||
XPeng, Inc., ADR* |
6,985 | $ | 325,711 | |||||
Yadea Group Holdings Ltd.(a) |
16,000 | 27,561 | ||||||
Yulon Motor Co. Ltd. |
26,986 | 39,884 | ||||||
8,786,867 | ||||||||
Banks – 13.1% | ||||||||
Absa Group Ltd. |
23,815 | 219,349 | ||||||
Abu Dhabi Commercial Bank PJSC |
109,270 | 246,911 | ||||||
Abu Dhabi Islamic Bank PJSC |
19,571 | 31,116 | ||||||
AFFIN Bank Bhd. |
213,227 | 87,536 | ||||||
Agricultural Bank of China Ltd., Class A |
441,100 | 202,653 | ||||||
Agricultural Bank of China Ltd., Class H |
990,000 | 337,252 | ||||||
Akbank TAS |
22,667 | 13,815 | ||||||
Akbank TAS, ADR |
20,016 | 25,821 | ||||||
Al Khalij Commercial Bank PQSC(c) |
924,464 | 568,745 | ||||||
Al Rajhi Bank |
25,190 | 930,799 | ||||||
Alinma Bank |
20,900 | 140,136 | ||||||
Alliance Bank Malaysia Bhd. |
579,300 | 384,708 | ||||||
Alpha Services and Holdings SA* |
70,730 | 89,915 | ||||||
AMMB Holdings Bhd.* |
82,500 | 66,940 | ||||||
AU Small Finance Bank Ltd.* (a) |
2,288 | 37,166 | ||||||
Axis Bank Ltd.* |
46,090 | 456,707 | ||||||
Banco Bradesco SA* |
44,000 | 132,695 | ||||||
Banco Bradesco SA (Preference)* |
165,220 | 583,267 | ||||||
Banco de Bogota SA |
2,014 | 40,280 | ||||||
Banco de Chile |
1,541,320 | 134,124 | ||||||
Banco de Credito e Inversiones SA |
1,728 | 58,346 | ||||||
Banco del Bajio SA(a) |
396,000 | 745,042 | ||||||
Banco do Brasil SA |
49,500 | 250,266 | ||||||
Banco do Estado do Rio Grande do Sul SA (Preference), Class B |
100,000 | 193,188 | ||||||
Banco Inter SA* |
11,000 | 69,274 | ||||||
Banco Pan SA (Preference) |
10,600 | 24,991 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Banco Santander Chile |
2,123,165 | $ | 93,163 | |||||
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand(b) |
11,800 | 15,061 | ||||||
Bancolombia SA |
9,900 | 87,861 | ||||||
Bancolombia SA (Preference) |
18,122 | 161,403 | ||||||
Bandhan Bank Ltd.(a) |
14,388 | 56,000 | ||||||
Bangkok Bank PCL, NVDR |
22,000 | 81,218 | ||||||
Bank Al Habib Ltd. |
522,500 | 214,065 | ||||||
Bank AlBilad* |
8,745 | 98,387 | ||||||
Bank Al-Jazira |
6,066 | 31,050 | ||||||
Bank Central Asia Tbk. PT |
1,148,500 | 605,967 | ||||||
Bank Jago Tbk. PT* |
82,500 | 90,259 | ||||||
Bank Mandiri Persero Tbk. PT |
632,500 | 320,324 | ||||||
Bank Negara Indonesia Persero Tbk. PT |
313,500 | 154,897 | ||||||
Bank of Ayudhya PCL, NVDR |
66,000 | 64,643 | ||||||
Bank of Baroda* |
41,116 | 53,536 | ||||||
Bank of Beijing Co. Ltd., Class A |
74,200 | 51,366 | ||||||
Bank of Changsha Co. Ltd., Class A |
9,400 | 11,825 | ||||||
Bank of Chengdu Co. Ltd., Class A |
10,600 | 21,136 | ||||||
Bank of China Ltd., Class A |
225,500 | 107,477 | ||||||
Bank of China Ltd., Class H |
2,640,000 | 933,276 | ||||||
Bank of Communications Co. Ltd., Class A |
132,000 | 93,235 | ||||||
Bank of Communications Co. Ltd., Class H |
716,000 | 426,155 | ||||||
Bank of Hangzhou Co. Ltd., Class A |
18,800 | 41,952 | ||||||
Bank of India* |
5,936 | 4,748 | ||||||
Bank of Jiangsu Co. Ltd., Class A |
53,880 | 52,960 | ||||||
Bank of Nanjing Co. Ltd., Class A |
31,800 | 48,202 | ||||||
Bank of Ningbo Co. Ltd., Class A |
16,500 | 98,495 | ||||||
Bank of Qingdao Co. Ltd., Class H(a) |
53,000 | 27,866 | ||||||
Bank of Shanghai Co. Ltd., Class A |
49,500 | 56,390 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 221 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Bank of the Philippine Islands |
61,600 | $ | 106,251 | |||||
Bank of Zhengzhou Co. Ltd., Class A* |
15,900 | 8,398 | ||||||
Bank of Zhengzhou Co. Ltd., Class H* (a) |
106,000 | 25,209 | ||||||
Bank Pan Indonesia Tbk. PT* |
1,903,000 | 106,114 | ||||||
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk. PT |
2,524,500 | 253,920 | ||||||
Bank Rakyat Indonesia Persero Tbk. PT |
2,260,519 | 678,116 | ||||||
Bank Tabungan Negara Persero Tbk. PT* |
2,139,500 | 268,806 | ||||||
Banque Saudi Fransi |
19,580 | 220,548 | ||||||
BDO Unibank, Inc. |
58,300 | 143,524 | ||||||
BIMB Holdings Bhd. |
15,880 | 12,271 | ||||||
BNK Financial Group, Inc. |
5,936 | 44,702 | ||||||
BOC Hong Kong Holdings Ltd. |
137,500 | 436,589 | ||||||
Boubyan Bank KSCP* |
10,735 | 27,848 | ||||||
Burgan Bank SAK |
28,576 | 22,561 | ||||||
Canara Bank* |
2,332 | 6,680 | ||||||
Capitec Bank Holdings Ltd. |
1,892 | 212,449 | ||||||
Chang Hwa Commercial Bank Ltd. |
125,722 | 74,144 | ||||||
China Bohai Bank Co. Ltd., Class H(a) (b) |
137,500 | 52,143 | ||||||
China CITIC Bank Corp. Ltd., Class H |
385,000 | 169,262 | ||||||
China Construction Bank Corp., Class A |
28,200 | 26,132 | ||||||
China Construction Bank Corp., Class H |
3,520,000 | 2,393,711 | ||||||
China Everbright Bank Co. Ltd., Class A |
132,000 | 70,958 | ||||||
China Everbright Bank Co. Ltd., Class H |
53,000 | 18,668 | ||||||
China Merchants Bank Co. Ltd., Class A |
55,000 | 463,855 | ||||||
China Merchants Bank Co. Ltd., Class H |
129,500 | 1,091,229 | ||||||
China Minsheng Banking Corp. Ltd., Class A |
93,500 | 56,837 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
China Minsheng Banking Corp. Ltd., Class H(b) |
220,000 | $ | 87,389 | |||||
China Zheshang Bank Co. Ltd., Class A |
47,000 | 25,265 | ||||||
China Zheshang Bank Co. Ltd., Class H(b) |
53,000 | 21,393 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class A |
18,800 | 11,223 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H |
94,000 | 33,834 | ||||||
CIMB Group Holdings Bhd. |
247,948 | 312,555 | ||||||
City Union Bank Ltd. |
9,675 | 21,726 | ||||||
Commercial Bank PSQC (The) |
78,789 | 132,217 | ||||||
Commercial International Bank Egypt SAE* |
60,940 | 197,871 | ||||||
Credicorp Ltd. |
2,090 | 270,989 | ||||||
Credit Agricole Egypt SAE* |
66,167 | 114,897 | ||||||
Credit Bank of Moscow PJSC* |
5,773,590 | 581,987 | ||||||
CTBC Financial Holding Co. Ltd. |
660,000 | 550,623 | ||||||
DGB Financial Group, Inc. |
2,525 | 22,364 | ||||||
Doha Bank QPSC |
41,736 | 33,059 | ||||||
Dubai Islamic Bank PJSC |
82,500 | 114,772 | ||||||
E.Sun Financial Holding Co. Ltd. |
291,879 | 278,670 | ||||||
Emirates NBD Bank PJSC |
77,385 | 293,895 | ||||||
EnTie Commercial Bank Co. Ltd. |
440,000 | 264,236 | ||||||
Eurobank Ergasias Services and Holdings SA* (b) |
91,190 | 95,335 | ||||||
Far Eastern International Bank |
58,088 | 21,829 | ||||||
Federal Bank Ltd. |
779,773 | 1,014,792 | ||||||
First Abu Dhabi Bank PJSC |
146,685 | 711,631 | ||||||
First Financial Holding Co. Ltd. |
397,267 | 327,145 | ||||||
Grupo Aval Acciones y Valores SA (Preference) |
162,021 | 49,097 | ||||||
Grupo Elektra SAB de CV |
1,100 | 84,654 | ||||||
Grupo Financiero Banorte SAB de CV, Class O |
82,500 | 523,481 | ||||||
Grupo Financiero Inbursa SAB de CV, Class O* |
71,500 | 71,942 |
See Accompanying Notes to the Financial Statements.
222 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Gulf Bank KSCP |
45,315 | $ | 36,980 | |||||
Habib Bank Ltd. |
32,200 | 23,722 | ||||||
Hana Financial Group, Inc. |
9,790 | 377,006 | ||||||
Hong Leong Bank Bhd. |
27,500 | 124,982 | ||||||
Hong Leong Financial Group Bhd. |
5,000 | 22,144 | ||||||
Hua Nan Financial Holdings Co. Ltd. |
173,473 | 126,946 | ||||||
Huaxia Bank Co. Ltd., Class A |
47,000 | 41,350 | ||||||
Huishang Bank Corp. Ltd., Class H* (b) |
485,000 | 165,219 | ||||||
ICICI Bank Ltd. |
103,620 | 1,109,870 | ||||||
IDFC First Bank Ltd.* |
61,957 | 40,956 | ||||||
Indian Bank |
128,315 | 294,907 | ||||||
Industrial & Commercial Bank of China Ltd., Class A |
286,000 | 208,713 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
2,255,000 | 1,234,894 | ||||||
Industrial Bank Co. Ltd., Class A |
60,500 | 176,131 | ||||||
Industrial Bank of Korea |
10,945 | 103,498 | ||||||
Intercorp
Financial Services, |
1,040 | 29,640 | ||||||
Itau CorpBanca Chile SA* |
1,015,777 | 2,260 | ||||||
Itau Unibanco Holding SA (Preference) |
165,000 | 682,304 | ||||||
Itausa SA |
28,109 | 51,511 | ||||||
Itausa SA (Preference) |
154,000 | 280,025 | ||||||
JB Financial Group Co. Ltd. |
1,500 | 11,386 | ||||||
Jiangsu Changshu Rural Commercial Bank Co. Ltd., Class A |
6,700 | 7,601 | ||||||
Kasikornbank PCL, NVDR |
46,400 | 197,164 | ||||||
KB Financial Group, Inc. |
13,090 | 634,029 | ||||||
Kiatnakin Phatra Bank PCL, NVDR |
20,800 | 37,610 | ||||||
King’s Town Bank Co. Ltd. |
55,000 | 82,079 | ||||||
Komercni Banka A/S |
1,272 | 49,401 | ||||||
Kotak Mahindra Bank Ltd. |
22,165 | 601,224 | ||||||
Krung Thai Bank PCL, NVDR |
153,700 | 53,268 | ||||||
Kuwait Finance House KSCP |
99,825 | 275,516 | ||||||
Kuwait International Bank KSCP* |
382,965 | 284,572 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Malayan Banking Bhd. |
225,500 | $ | 438,366 | |||||
Malaysia Building Society Bhd. |
1,409,517 | 217,844 | ||||||
Masraf Al Rayan QSC |
63,281 | 82,990 | ||||||
MCB Bank Ltd. |
16,300 | 15,606 | ||||||
Meezan Bank Ltd. |
198,110 | 154,173 | ||||||
Mega Financial Holding Co. Ltd. |
404,000 | 485,233 | ||||||
Metropolitan Bank & Trust Co. |
38,560 | 36,487 | ||||||
Moneta Money Bank A/S* (a) |
20,195 | 79,023 | ||||||
National Bank of Greece SA* |
15,389 | 48,440 | ||||||
National Bank of Kuwait SAKP |
148,390 | 487,332 | ||||||
Nedbank Group Ltd. |
13,420 | 153,544 | ||||||
O-Bank Co. Ltd. |
106,000 | 29,732 | ||||||
OTP Bank Nyrt.* |
7,535 | 452,973 | ||||||
Philippine National Bank* |
309,600 | 123,447 | ||||||
Ping An Bank Co. Ltd., Class A |
55,000 | 167,596 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(a) (b) |
330,000 | 240,106 | ||||||
Public Bank Bhd. |
511,500 | 515,082 | ||||||
Punjab National Bank* |
43,248 | 24,315 | ||||||
Qatar International Islamic Bank QSC |
9,789 | 26,321 | ||||||
Qatar Islamic Bank SAQ |
45,815 | 231,780 | ||||||
Qatar National Bank QPSC |
148,720 | 837,341 | ||||||
Qingdao Rural Commercial Bank Corp., Class A |
18,800 | 11,223 | ||||||
RBL Bank Ltd.* (a) |
235,126 | 566,924 | ||||||
RHB Bank Bhd. |
75,591 | 101,859 | ||||||
Riyad Bank |
45,111 | 355,389 | ||||||
Saudi British Bank (The) |
15,015 | 132,701 | ||||||
Saudi Investment Bank (The) |
6,493 | 31,194 | ||||||
Saudi National Bank (The) |
73,040 | 1,283,248 | ||||||
Sberbank of Russia PJSC |
369,050 | 1,852,030 | ||||||
Sberbank of Russia PJSC (Preference) |
39,708 | 179,561 | ||||||
Security Bank Corp. |
2,550 | 6,116 | ||||||
Shanghai Commercial & Savings Bank Ltd. (The) |
165,000 | 261,071 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 223 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Shanghai Pudong Development Bank Co. Ltd., Class A |
82,500 | $ | 115,255 | |||||
Shinhan Financial Group Co. Ltd. |
17,270 | 565,297 | ||||||
Siam Commercial Bank PCL (The), NVDR |
60,800 | 230,869 | ||||||
SinoPac Financial Holdings Co. Ltd. |
440,000 | 223,888 | ||||||
Standard Bank Group Ltd. |
42,367 | 377,484 | ||||||
State Bank of India |
60,115 | 403,128 | ||||||
Taichung Commercial Bank Co. Ltd. |
87,564 | 37,628 | ||||||
Taishin Financial Holding Co. Ltd. |
431,566 | 283,226 | ||||||
Taiwan Business Bank |
86,892 | 29,559 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. |
325,200 | 264,290 | ||||||
Thanachart Capital PCL, NVDR |
6,400 | 6,799 | ||||||
Tisco Financial Group PCL, NVDR |
9,900 | 27,523 | ||||||
TMBThanachart Bank PCL, NVDR |
1,875,900 | 65,578 | ||||||
Turkiye Garanti Bankasi A/S |
61,490 | 62,992 | ||||||
Turkiye Halk Bankasi A/S* |
28,578 | 13,167 | ||||||
Turkiye Is Bankasi A/S, Class C |
67,999 | 39,816 | ||||||
Turkiye Vakiflar Bankasi TAO, Class D* |
51,728 | 18,507 | ||||||
Union Bank of India* |
10,017 | 6,174 | ||||||
Union Bank of Taiwan* |
124,325 | 52,755 | ||||||
United Bank Ltd. |
217,656 | 177,976 | ||||||
VTB Bank PJSC |
136,511,531 | 101,757 | ||||||
Woori Financial Group, Inc. |
16,390 | 185,844 | ||||||
Yapi ve Kredi Bankasi A/S |
80,342 | 22,811 | ||||||
Yes Bank Ltd.* |
38,361 | 6,557 | ||||||
43,748,590 | ||||||||
Beverages – 1.0% | ||||||||
Ambev SA |
93,500 | 281,810 | ||||||
Anadolu Efes Biracilik ve Malt Sanayii A/S |
9,872 | 22,793 |
Investments | Shares | Value | ||||||
Beverages – (continued) | ||||||||
Arca Continental SAB de CV(b) |
16,500 | $ | 100,825 | |||||
Becle SAB de CV |
10,700 | 24,512 | ||||||
Carabao Group PCL, NVDR |
2,800 | 10,463 | ||||||
China Foods Ltd. |
330,000 | 126,416 | ||||||
China Resources Beer Holdings Co. Ltd. |
27,107 | 224,758 | ||||||
Cia Cervecerias Unidas SA |
6,875 | 57,756 | ||||||
Coca-Cola Femsa SAB de CV |
16,500 | 89,114 | ||||||
Coca-Cola Icecek A/S |
2,875 | 25,446 | ||||||
Distell Group Holdings Ltd.* |
3,420 | 41,123 | ||||||
Embotelladora Andina SA (Preference), Class B |
9,513 | 19,699 | ||||||
Emperador, Inc. |
55,200 | 20,039 | ||||||
Fomento Economico Mexicano SAB de CV |
38,500 | 317,213 | ||||||
Fraser & Neave Holdings Bhd. |
3,700 | 24,178 | ||||||
Hebei Hengshui Laobaigan Liquor Co. Ltd., Class A |
5,500 | 18,504 | ||||||
Heineken Malaysia Bhd. |
3,800 | 21,106 | ||||||
Hite Jinro Co. Ltd. |
348 | 10,364 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A |
2,100 | 61,097 | ||||||
Kweichow Moutai Co. Ltd., Class A |
1,900 | 542,177 | ||||||
Lotte Chilsung Beverage Co. Ltd. |
150 | 18,677 | ||||||
Luzhou Laojiao Co. Ltd., Class A |
2,400 | 85,866 | ||||||
Nongfu Spring Co. Ltd., Class H(a) (b) |
36,200 | 183,582 | ||||||
Osotspa PCL, NVDR |
20,400 | 20,134 | ||||||
Radico Khaitan Ltd. |
5,940 | 88,785 | ||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A |
1,960 | 92,344 | ||||||
Tsingtao Brewery Co. Ltd., Class H(b) |
8,000 | 69,571 | ||||||
United Breweries Ltd. |
1,379 | 30,544 | ||||||
United Spirits Ltd.* |
6,262 | 79,223 | ||||||
Varun Beverages Ltd. |
1,741 | 19,747 | ||||||
Vina Concha y Toro SA |
261,661 | 381,535 | ||||||
Wuliangye Yibin Co. Ltd., Class A |
6,600 | 223,300 |
See Accompanying Notes to the Financial Statements.
224 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Beverages – (continued) | ||||||||
Yantai Changyu Pioneer Wine Co. Ltd., Class A |
5,500 | $ | 27,099 | |||||
Yantai Changyu Pioneer Wine Co. Ltd., Class B |
15,000 | 26,957 | ||||||
3,386,757 | ||||||||
Biotechnology – 0.8% | ||||||||
3SBio, Inc.* (a) |
45,980 | 42,085 | ||||||
ABLBio, Inc.* |
2,133 | 38,971 | ||||||
Adimmune Corp. |
19,000 | 30,029 | ||||||
Akeso, Inc.* (a) (b) |
11,000 | 61,653 | ||||||
Alphamab Oncology* (a) |
24,000 | 49,610 | ||||||
Alteogen, Inc.* |
780 | 46,725 | ||||||
Amicogen, Inc.* |
514 | 14,207 | ||||||
Anterogen Co. Ltd.* |
477 | 23,839 | ||||||
AptaBio Therapeutics, Inc.* |
954 | 41,228 | ||||||
BeiGene Ltd.* |
13,000 | 363,978 | ||||||
Beijing Tiantan Biological Products Corp. Ltd., Class A |
5,300 | 23,911 | ||||||
Biocon Ltd.* |
6,644 | 31,152 | ||||||
Bioneer Corp.* |
1,045 | 44,803 | ||||||
Burning Rock Biotech Ltd., ADR* (b) |
1,431 | 20,163 | ||||||
Cellid Co. Ltd.* |
424 | 25,907 | ||||||
Celltrion, Inc.* |
2,032 | 348,651 | ||||||
CrystalGenomics, Inc.* |
5,353 | 31,379 | ||||||
CStone Pharmaceuticals* (a) |
25,000 | 31,045 | ||||||
Daan Gene Co. Ltd., Class A |
8,000 | 24,065 | ||||||
Eubiologics Co. Ltd.* |
1,650 | 67,353 | ||||||
GeneOne Life Science, Inc.* |
2,485 | 53,270 | ||||||
Genetron Holdings Ltd., ADR* |
1,643 | 22,624 | ||||||
Genexine, Inc.* |
282 | 15,783 | ||||||
Green Cross Cell Corp.(c) |
258 | 8,511 | ||||||
Green Cross Corp. |
163 | 38,290 | ||||||
Green Cross Holdings Corp. |
1,219 | 30,565 | ||||||
Green Cross LabCell Corp. |
371 | 30,796 | ||||||
Helixmith Co. Ltd.* |
1,719 | 35,011 | ||||||
Hualan Biological Engineering, Inc., Class A |
5,300 | 24,598 | ||||||
Hugel, Inc.* |
126 | 19,495 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
I-Mab, ADR* |
742 | $ | 45,848 | |||||
Innovent Biologics, Inc.* (a) |
17,000 | 152,538 | ||||||
iNtRON Biotechnology, Inc.* |
1,643 | 27,136 | ||||||
Kintor Pharmaceutical Ltd.* (a) (b) |
7,000 | 34,914 | ||||||
KoBioLabs, Inc.* |
1,166 | 25,893 | ||||||
L&C Bio Co. Ltd. |
1,325 | 38,779 | ||||||
Medigen Vaccine Biologics Corp.* |
4,000 | 34,522 | ||||||
MedPacto, Inc.* |
235 | 11,362 | ||||||
Medy-Tox, Inc.* |
115 | 14,722 | ||||||
Naturecell Co. Ltd.* |
2,743 | 46,243 | ||||||
OBI Pharma, Inc.* |
12,000 | 45,957 | ||||||
OliX Pharmaceuticals, Inc.* |
901 | 29,685 | ||||||
Pharmicell Co. Ltd.* |
2,919 | 31,100 | ||||||
Seegene, Inc. |
1,623 | 73,889 | ||||||
Shanghai Haohai Biological Technology Co. Ltd., Class A |
770 | 18,741 | ||||||
Shanghai Junshi Biosciences Co. Ltd., Class A* |
1,113 | 8,397 | ||||||
Shanghai RAAS Blood Products Co. Ltd., Class A |
9,400 | 9,695 | ||||||
SillaJen, Inc.* ‡ (c) |
2,522 | 13,057 | ||||||
SK Bioscience Co. Ltd.* |
495 | 97,428 | ||||||
Taigen Biopharmaceuticals Holdings Ltd.* |
55,000 | 31,546 | ||||||
TaiMed Biologics, Inc.* |
1,000 | 2,402 | ||||||
Vaxcell-Bio Therapeutics Co. Ltd.* |
371 | 20,478 | ||||||
Zai Lab Ltd., ADR* |
1,494 | 155,974 | ||||||
2,610,003 | ||||||||
Building Products – 0.2% | ||||||||
Astral Ltd. |
886 | 25,849 | ||||||
Beijing New Building Materials plc, Class A |
5,300 | 23,389 | ||||||
Blue Star Ltd. |
2,703 | 34,657 | ||||||
China Lesso Group Holdings Ltd. |
33,000 | 51,246 | ||||||
Kajaria Ceramics Ltd. |
2,608 | 42,534 | ||||||
Kyung Dong Navien Co. Ltd. |
208 | 11,926 | ||||||
LX Hausys Ltd. |
2,970 | 176,896 | ||||||
Taiwan Glass Industry Corp. |
55,000 | 53,994 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 225 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Building Products – (continued) | ||||||||
Xinyi Glass Holdings Ltd. |
50,000 | $ | 141,084 | |||||
Zhejiang Weixing New Building Materials Co. Ltd., Class A |
10,800 | 30,378 | ||||||
Zhuzhou Kibing Group Co. Ltd., Class A |
5,300 | 13,169 | ||||||
605,122 | ||||||||
Capital Markets – 2.1% | ||||||||
B3 SA – Brasil Bolsa Balcao |
126,500 | 267,273 | ||||||
Bairong, Inc.* (a) |
26,500 | 41,969 | ||||||
Banco BTG Pactual SA* |
22,000 | 88,008 | ||||||
Bangkok Commercial Asset Management PCL, NVDR |
25,000 | 14,315 | ||||||
Bolsa Mexicana de Valores SAB de CV |
29,100 | 55,868 | ||||||
Boursa Kuwait Securities Co. KPSC |
4,876 | 32,512 | ||||||
Bursa Malaysia Bhd. |
8,000 | 14,509 | ||||||
Caitong Securities Co. Ltd., Class A |
9,400 | 15,071 | ||||||
Capital Securities Corp. |
110,000 | 59,928 | ||||||
Changjiang Securities Co. Ltd., Class A |
14,100 | 15,952 | ||||||
China Bills Finance Corp. |
53,000 | 31,733 | ||||||
China Cinda Asset Management Co. Ltd., Class H |
330,000 | 55,148 | ||||||
China Everbright Ltd.(b) |
440,000 | 495,485 | ||||||
China Galaxy Securities Co. Ltd., Class A |
5,200 | 8,028 | ||||||
China Galaxy Securities Co. Ltd., Class H |
61,000 | 34,032 | ||||||
China Huarong Asset Management Co. Ltd., Class H* ‡ (a) (c) |
208,000 | 21,543 | ||||||
China International Capital Corp. Ltd., Class H(a) |
19,200 | 47,784 | ||||||
China Merchants Securities Co. Ltd., Class A |
12,220 | 32,768 | ||||||
China Merchants Securities Co. Ltd., Class H(a) (b) |
16,600 | 26,247 | ||||||
China Renaissance Holdings Ltd.* (a) |
10,600 | 25,509 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
CITIC Securities Co. Ltd., Class A |
16,500 | $ | 66,729 | |||||
CITIC Securities Co. Ltd., Class H(b) |
43,000 | 109,558 | ||||||
Coronation Fund Managers Ltd. |
7,009 | 23,337 | ||||||
CSC Financial Co. Ltd., Class H(a) (b) |
467,500 | 495,803 | ||||||
Daishin Securities Co. Ltd. |
212 | 3,774 | ||||||
Daishin Securities Co. Ltd. (Preference) |
530 | 8,595 | ||||||
Daou Data Corp. |
7,150 | 82,602 | ||||||
Daou Technology, Inc. |
12,458 | 248,403 | ||||||
Dhani Services Ltd.* |
14,469 | 34,317 | ||||||
Dubai Financial Market PJSC* |
67,052 | 18,620 | ||||||
Egyptian Financial Group-Hermes Holding Co.* |
362,523 | 286,603 | ||||||
Everbright Securities Co. Ltd., Class A |
9,400 | 22,372 | ||||||
Founder Securities Co. Ltd., Class A |
14,100 | 17,979 | ||||||
GF Securities Co. Ltd., Class A |
14,100 | 44,332 | ||||||
GF Securities Co. Ltd., Class H |
48,000 | 81,573 | ||||||
Glory Sun Financial Group Ltd.* |
1,272,000 | 44,149 | ||||||
Guangzhou Yuexiu Financial Holdings Group Co. Ltd., Class A |
8,640 | 10,437 | ||||||
Guosen Securities Co. Ltd., Class A |
14,100 | 25,118 | ||||||
Guotai Junan International Holdings Ltd.(b) |
1,355,000 | 196,830 | ||||||
Guotai Junan Securities Co. Ltd., Class A |
22,000 | 60,232 | ||||||
Guotai Junan Securities Co. Ltd., Class H(a) |
21,200 | 28,997 | ||||||
Haitong Securities Co. Ltd., Class A |
18,800 | 36,282 | ||||||
Haitong Securities Co. Ltd., Class H |
110,000 | 97,994 | ||||||
Hanwha Investment & Securities Co. Ltd.* |
5,088 | 24,122 | ||||||
HDFC Asset Management Co. Ltd.(a) |
782 | 27,645 |
See Accompanying Notes to the Financial Statements.
226 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Huatai Securities Co. Ltd., Class A |
26,100 | $ | 64,727 | |||||
Huatai Securities Co. Ltd., Class H(a) |
51,000 | 76,050 | ||||||
IBF Financial Holdings Co. Ltd. |
49,893 | 28,527 | ||||||
ICICI Securities Ltd.(a) |
1,880 | 18,529 | ||||||
IDFC Ltd.* |
691,240 | 508,636 | ||||||
Indian Energy Exchange Ltd.(a) |
7,260 | 68,672 | ||||||
Industrial Securities Co. Ltd., Class A |
26,500 | 37,808 | ||||||
Investec Ltd. |
158,565 | 730,234 | ||||||
Is Yatirim Menkul Degerler A/S |
63,690 | 105,983 | ||||||
Jih Sun Financial Holdings Co. Ltd.* |
50,000 | 23,374 | ||||||
JM Financial Ltd. |
223,355 | 262,187 | ||||||
JSE Ltd. |
2,795 | 19,622 | ||||||
KIWOOM Securities Co. Ltd. |
640 | 57,507 | ||||||
Korea Investment Holdings Co. Ltd. |
1,375 | 102,370 | ||||||
Meritz Securities Co. Ltd. |
6,708 | 26,751 | ||||||
Mirae Asset Securities Co. Ltd. |
7,745 | 57,530 | ||||||
Mirae Asset Securities Co. Ltd. (2nd Preference) |
6,840 | 28,301 | ||||||
Moscow Exchange MICEX-RTS PJSC |
29,911 | 73,280 | ||||||
Multi Commodity Exchange of India Ltd. |
583 | 13,265 | ||||||
Nanjing Securities Co. Ltd., Class A |
9,400 | 14,263 | ||||||
NH Investment & Securities Co. Ltd. |
5,665 | 63,750 | ||||||
Nippon Life India Asset Management Ltd.(a) |
5,244 | 29,297 | ||||||
Noah Holdings Ltd., ADR* |
1,113 | 47,314 | ||||||
Orient Securities Co. Ltd., Class A |
9,400 | 20,212 | ||||||
Orient Securities Co. Ltd., Class H(a) (b) |
42,400 | 34,829 | ||||||
Pacific Securities Co. Ltd., Class A* |
37,100 | 18,088 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
President Securities Corp. |
53,000 | $ | 43,168 | |||||
PSG Konsult Ltd. |
3,256 | 2,975 | ||||||
Reinet Investments SCA |
4,345 | 78,810 | ||||||
Samsung Securities Co. Ltd. |
2,255 | 91,373 | ||||||
Saratoga Investama Sedaya Tbk. PT |
891,000 | 131,441 | ||||||
SDIC Capital Co. Ltd., Class A |
14,288 | 18,309 | ||||||
Shenwan Hongyuan Group Co. Ltd., Class A |
42,400 | 33,990 | ||||||
Shenwan Hongyuan Group Co. Ltd., Class H(a) |
75,200 | 19,044 | ||||||
Sinolink Securities Co. Ltd., Class A |
9,400 | 15,747 | ||||||
Tata Liquid Fund* ‡ (c) |
5,000 | — | ||||||
UTI Asset Management Co. Ltd. |
1,378 | 19,056 | ||||||
Western Securities Co. Ltd., Class A |
26,500 | 31,721 | ||||||
Woori Investment Bank Co. Ltd. |
192,115 | 163,747 | ||||||
Woori Technology Investment Co. Ltd.* |
3,763 | 38,160 | ||||||
Yuanta Securities Korea Co. Ltd. |
44,364 | 170,463 | ||||||
Zheshang Securities Co. Ltd., Class A* |
4,700 | 9,063 | ||||||
Zhongtai Securities Co. Ltd., Class A |
15,900 | 22,983 | ||||||
6,901,241 | ||||||||
Chemicals – 3.8% | ||||||||
Aarti Industries Ltd. |
5,940 | 76,478 | ||||||
Advanced Petrochemical Co. |
1,686 | 33,442 | ||||||
Alkyl Amines Chemicals |
220 | 10,590 | ||||||
Alpek SAB de CV(b) |
201,200 | 220,759 | ||||||
Alujain Holding* |
795 | 13,438 | ||||||
Asian Paints Ltd. |
9,735 | 403,031 | ||||||
Atul Ltd. |
259 | 31,573 | ||||||
Balaji Amines Ltd. |
742 | 34,284 | ||||||
Barito Pacific Tbk. PT |
474,700 | 31,328 | ||||||
Batu Kawan Bhd. |
6,300 | 33,927 | ||||||
Bayer CropScience Ltd. |
141 | 9,393 | ||||||
Berger Paints India Ltd. |
5,765 | 57,087 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 227 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Boubyan Petrochemicals Co. KSCP |
7,344 | $ | 22,413 | |||||
Braskem SA (Preference), Class A* |
5,500 | 53,136 | ||||||
Carborundum Universal Ltd. |
6,985 | 78,291 | ||||||
Castrol India Ltd. |
40,480 | 74,682 | ||||||
Chambal Fertilizers and Chemicals Ltd. |
87,615 | 432,568 | ||||||
Chandra Asri Petrochemical Tbk. PT |
74,200 | 39,804 | ||||||
China Lumena New Materials Corp.* ‡ (c) |
22,200 | — | ||||||
China Man-Made Fiber Corp. |
744,042 | 271,573 | ||||||
China Petrochemical Development Corp.* |
76,000 | 33,069 | ||||||
China Risun Group Ltd.(a) |
660,000 | 400,460 | ||||||
Chunbo Co. Ltd. |
141 | 34,172 | ||||||
CNNC Hua Yuan Titanium Dioxide Co. Ltd., Class A |
5,500 | 11,869 | ||||||
Coromandel International Ltd. |
1,898 | 19,912 | ||||||
D&L Industries, Inc. |
110,800 | 18,551 | ||||||
DCM Shriram Ltd. |
1,375 | 18,137 | ||||||
Deepak Nitrite Ltd. |
1,219 | 36,308 | ||||||
Dongjin Semichem Co. Ltd. |
206 | 6,170 | ||||||
Ecopro Co. Ltd. |
242 | 20,730 | ||||||
Egypt Kuwait Holding Co. SAE* |
489,390 | 674,869 | ||||||
ENF Technology Co. Ltd. |
5,555 | 137,384 | ||||||
Engro Corp. Ltd. |
148,479 | 245,560 | ||||||
Engro Fertilizers Ltd. |
268,556 | 112,002 | ||||||
Fauji Fertilizer Co. Ltd. |
314,972 | 189,057 | ||||||
Finolex Industries Ltd. |
24,750 | 72,748 | ||||||
Foosung Co. Ltd.* |
1,768 | 30,184 | ||||||
Formosa Chemicals & Fibre Corp. |
74,000 | 214,215 | ||||||
Formosa Plastics Corp. |
94,000 | 363,378 | ||||||
Grand Pacific Petrochemical |
55,000 | 53,401 | ||||||
Guangzhou Tinci Materials Technology Co. Ltd., Class A |
700 | 18,041 | ||||||
Hansol Chemical Co. Ltd. |
232 | 65,319 | ||||||
Hanwha Solutions Corp.* |
4,607 | 161,051 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
HDC Holdings Co. Ltd. |
18,466 | $ | 166,716 | |||||
Hengli Petrochemical Co. Ltd., Class A |
16,500 | 56,828 | ||||||
Hengyi Petrochemical Co. Ltd., Class A |
14,100 | 24,127 | ||||||
Ho Tung Chemical Corp. |
440,000 | 164,554 | ||||||
Huabao International Holdings Ltd.(b) |
17,000 | 31,950 | ||||||
Huafon Chemical Co. Ltd., Class A |
5,300 | 9,847 | ||||||
Huchems Fine Chemical Corp. |
9,482 | 213,813 | ||||||
Hyosung Advanced Materials Corp.* |
110 | 66,741 | ||||||
Hyosung Chemical Corp.* |
53 | 13,040 | ||||||
Indorama Ventures PCL, NVDR |
82,500 | 104,422 | ||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A |
23,500 | 18,839 | ||||||
International CSRC Investment Holdings Co. |
53,000 | 45,741 | ||||||
Jiangsu Eastern Shenghong Co. Ltd., Class A |
5,300 | 22,569 | ||||||
Kansai Nerolac Paints Ltd. |
2,196 | 15,984 | ||||||
KCC Corp. |
106 | 30,207 | ||||||
Kingfa Sci & Tech Co. Ltd., Class A |
16,200 | 29,695 | ||||||
Kolon Industries, Inc. |
674 | 51,449 | ||||||
Korea Petrochemical Ind Co. Ltd. |
135 | 21,373 | ||||||
Kumho Petrochemical Co. Ltd. |
715 | 105,242 | ||||||
LB Group Co. Ltd., Class A |
4,700 | 20,851 | ||||||
LG Chem Ltd. |
990 | 708,262 | ||||||
LG Chem Ltd. (Preference) |
170 | 55,791 | ||||||
Linde India Ltd. |
1,378 | 42,409 | ||||||
Lotte Chemical Corp. |
550 | 105,665 | ||||||
LOTTE Fine Chemical Co. Ltd. |
397 | 28,912 | ||||||
Luxi Chemical Group Co. Ltd., Class A |
10,800 | 27,678 | ||||||
Mesaieed Petrochemical Holding Co. |
76,751 | 50,591 | ||||||
Miwon Commercial Co. Ltd. |
212 | 37,645 |
See Accompanying Notes to the Financial Statements.
228 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Nan Pao Resins Chemical Co. Ltd. |
31,000 | $ | 154,953 | |||||
Nan Ya Plastics Corp. |
110,000 | 336,624 | ||||||
Nantex Industry Co. Ltd. |
7,000 | 20,515 | ||||||
National Industrialization Co.* |
5,584 | 37,069 | ||||||
National Petrochemical Co. |
1,669 | 21,403 | ||||||
Navin Fluorine International Ltd. |
1,910 | 85,153 | ||||||
Ningxia Baofeng Energy Group Co. Ltd., Class A |
10,600 | 24,184 | ||||||
Nizhnekamskneftekhim PJSC |
151,250 | 271,759 | ||||||
Nizhnekamskneftekhim PJSC (Preference) |
123,200 | 181,081 | ||||||
OCI Co. Ltd.* |
333 | 36,903 | ||||||
Orbia Advance Corp. SAB de CV |
33,533 | 87,346 | ||||||
Oriental Union Chemical Corp.* |
38,000 | 32,591 | ||||||
Petkim Petrokimya Holding A/S* |
57,016 | 38,722 | ||||||
Petronas Chemicals Group Bhd. |
55,000 | 115,419 | ||||||
PhosAgro PJSC |
1,870 | 147,626 | ||||||
PI Advanced Materials Co. Ltd. |
520 | 20,114 | ||||||
PI Industries Ltd. |
1,314 | 52,642 | ||||||
Pidilite Industries Ltd. |
2,750 | 84,968 | ||||||
PTT Global Chemical PCL, NVDR |
55,000 | 104,008 | ||||||
Qurain Petrochemical Industries Co. |
15,408 | 19,372 | ||||||
Rongsheng Petrochemical Co. Ltd., Class A |
27,500 | 74,086 | ||||||
SABIC Agri-Nutrients Co. |
4,125 | 180,357 | ||||||
Sahara International Petrochemical Co. |
5,929 | 69,392 | ||||||
Sasa Polyester Sanayi A/S* |
7,379 | 23,821 | ||||||
Sasol Ltd.* |
20,117 | 339,620 | ||||||
Satellite Chemical Co. Ltd., Class A |
2,380 | 14,486 | ||||||
Saudi Basic Industries Corp. |
18,590 | 639,343 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Saudi Industrial Investment Group |
4,770 | $ | 48,134 | |||||
Saudi Kayan Petrochemical Co.* |
17,930 | 97,325 | ||||||
Scientex Bhd. |
26,100 | 29,371 | ||||||
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A |
6,110 | 29,675 | ||||||
Shinkong Synthetic Fibers Corp. |
53,000 | 35,926 | ||||||
Sichuan Yahua Industrial Group Co. Ltd., Class A |
5,300 | 27,165 | ||||||
SK Chemicals Co. Ltd. |
412 | 63,463 | ||||||
SK Materials Co. Ltd. |
65 | 21,187 | ||||||
SKC Co. Ltd. |
440 | 67,023 | ||||||
Sociedad Quimica y Minera de Chile SA (Preference), Class B |
2,763 | 150,459 | ||||||
Solar Industries India Ltd. |
1,040 | 34,542 | ||||||
Songwon Industrial Co. Ltd. |
8,085 | 123,847 | ||||||
Soulbrain Co. Ltd. |
141 | 31,565 | ||||||
SRF Ltd. |
2,075 | 58,672 | ||||||
Sumitomo Chemical India Ltd. |
2,585 | 12,987 | ||||||
Supreme Industries Ltd. |
1,204 | 37,447 | ||||||
Swancor Holding Co. Ltd. |
42,000 | 149,070 | ||||||
Taekwang Industrial Co. Ltd. |
165 | 141,201 | ||||||
Tata Chemicals Ltd. |
3,975 | 47,847 | ||||||
TOA Paint Thailand PCL, NVDR |
12,000 | 11,934 | ||||||
Tongkun Group Co. Ltd., Class A |
9,400 | 29,290 | ||||||
TSRC Corp. |
7,000 | 8,068 | ||||||
Unid Co. Ltd. |
3,025 | 301,581 | ||||||
Unipar Carbocloro SA (Preference) |
2,779 | 36,812 | ||||||
UPL Ltd. |
20,405 | 201,703 | ||||||
USI Corp. |
28,000 | 34,637 | ||||||
Vinythai PCL, NVDR |
21,200 | 24,278 | ||||||
Wanhua Chemical Group Co. Ltd., Class A |
5,500 | 90,648 | ||||||
Wonik Materials Co. Ltd. |
4,235 | 117,966 | ||||||
Xinjiang Zhongtai Chemical Co. Ltd., Class A |
10,600 | 17,475 | ||||||
Yanbu National Petrochemical Co. |
6,105 | 123,861 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 229 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemiacals – (continued) | ||||||||
Zhejiang Longsheng Group Co. Ltd., Class A |
9,400 | $ | 18,288 | |||||
12,572,329 | ||||||||
Commercial Services & Supplies – 0.1% | ||||||||
China Everbright Environment Group Ltd. |
110,000 | 75,652 | ||||||
Dynagreen Environmental Protection Group Co. Ltd., Class H(a) |
50,000 | 25,582 | ||||||
Frontken Corp. Bhd. |
88,000 | 80,966 | ||||||
Indian Railway Catering & Tourism Corp. Ltd. |
6,050 | 68,328 | ||||||
KEPCO Plant Service & Engineering Co. Ltd. |
954 | 34,166 | ||||||
PNB Holdings Corp.* (c) |
46,815 | 38,769 | ||||||
S-1 Corp. |
347 | 24,736 | ||||||
Saudi Airlines Catering Co.* |
2,585 | 65,471 | ||||||
Taiwan Secom Co. Ltd. |
3,165 | 11,438 | ||||||
425,108 | ||||||||
Communications Equipment – 0.4% | ||||||||
Accton Technology Corp. |
10,000 | 87,563 | ||||||
Ace Technologies Corp.* |
705 | 8,627 | ||||||
Addsino Co. Ltd., Class A |
5,300 | 12,713 | ||||||
Advanced Ceramic X Corp. |
2,000 | 24,669 | ||||||
Arcadyan Technology Corp. |
92,000 | 347,376 | ||||||
BYD Electronic International Co. Ltd.(b) |
10,000 | 29,759 | ||||||
D-Link Corp. |
53,000 | 39,071 | ||||||
Glarun Technology Co. Ltd., Class A |
10,600 | 24,466 | ||||||
KMW Co. Ltd.* |
563 | 19,850 | ||||||
Seojin System Co. Ltd.* |
795 | 23,403 | ||||||
Sterlite Technologies Ltd. |
11,660 | 42,642 | ||||||
Tianjin 712 Communication & Broadcasting Co. Ltd., Class A |
900 | 5,299 | ||||||
Wistron NeWeb Corp. |
165,000 | 459,841 | ||||||
ZTE Corp., Class A |
4,700 | 23,958 | ||||||
ZTE Corp., Class H |
10,600 | 31,886 | ||||||
1,181,123 |
Investments | Shares | Value | ||||||
Construction & Engineering – 1.0% | ||||||||
BES Engineering Corp. |
105,000 | $ | 33,152 | |||||
China Communications Services Corp. Ltd., Class H |
1,256,000 | 694,275 | ||||||
China Conch Venture Holdings Ltd. |
55,000 | 268,670 | ||||||
China Railway Group Ltd., Class A |
47,000 | 38,559 | ||||||
China Railway Group Ltd., Class H |
110,000 | 53,875 | ||||||
Continental Holdings Corp. |
220,000 | 199,364 | ||||||
CTCI Corp. |
22,000 | 28,837 | ||||||
DA CIN Construction Co. Ltd. |
165,000 | 180,080 | ||||||
Daewoo Engineering & Construction Co. Ltd.* |
3,901 | 20,865 | ||||||
DL Construction Co. Ltd. |
4,290 | 108,117 | ||||||
DL Holdings Co. Ltd. |
397 | 22,321 | ||||||
Gamuda Bhd.* |
48,221 | 37,729 | ||||||
GEK Terna Holding Real Estate Construction SA* |
1,216 | 13,608 | ||||||
GS Engineering & Construction Corp. |
2,750 | 97,311 | ||||||
HDC Hyundai Development Co-Engineering & Construction, Class E |
1,236 | 27,025 | ||||||
Hyundai Engineering & Construction Co. Ltd. |
2,556 | 110,023 | ||||||
IJM Corp. Bhd. |
78,400 | 35,025 | ||||||
IS Dongseo Co. Ltd. |
808 | 31,254 | ||||||
KEC International Ltd. |
6,678 | 42,597 | ||||||
KEPCO Engineering & Construction Co., Inc. |
602 | 36,525 | ||||||
Larsen & Toubro Ltd. |
23,079 | 544,496 | ||||||
Larsen & Toubro Ltd., GDR(a) |
296 | 7,222 | ||||||
Malaysian Resources Corp. Bhd. |
85,090 | 8,425 | ||||||
Metallurgical Corp. of China Ltd., Class A |
65,800 | 41,746 | ||||||
Metallurgical Corp. of China Ltd., Class H |
106,000 | 29,433 | ||||||
NBCC India Ltd. |
41,870 | 24,966 | ||||||
Power Construction Corp. of China Ltd., Class A |
37,600 | 48,239 | ||||||
Samsung Engineering Co. Ltd.* |
5,555 | 117,893 |
See Accompanying Notes to the Financial Statements.
230 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Shanghai Construction Group Co. Ltd., Class A |
23,500 | $ | 12,008 | |||||
Shanghai Tunnel Engineering Co. Ltd., Class A |
14,100 | 11,281 | ||||||
Suzhou Gold Mantis Construction Decoration Co. Ltd., Class A |
9,400 | 8,769 | ||||||
Tekfen Holding A/S |
105,270 | 165,649 | ||||||
TY Holdings Co. Ltd.* |
1,908 | 44,330 | ||||||
United Integrated Services Co. Ltd. |
6,000 | 39,592 | ||||||
Voltas Ltd. |
4,455 | 71,664 | ||||||
Waskita Karya Persero Tbk. PT* |
249,100 | 16,176 | ||||||
Wijaya Karya Persero Tbk. PT* |
281,200 | 24,711 | ||||||
3,295,812 | ||||||||
Construction Materials – 1.5% | ||||||||
ACC Ltd. |
1,404 | 43,751 | ||||||
Ambuja Cements Ltd. |
11,597 | 62,692 | ||||||
Anhui Conch Cement Co. Ltd., Class A |
11,000 | 65,457 | ||||||
Anhui Conch Cement Co. Ltd., Class H |
43,000 | 213,921 | ||||||
Asia Cement China Holdings Corp. |
200,000 | 152,461 | ||||||
Asia Cement Co. Ltd. |
825 | 96,017 | ||||||
Asia Cement Corp. |
88,000 | 140,187 | ||||||
BBMG Corp., Class A |
42,300 | 18,574 | ||||||
Birla Corp. Ltd. |
15,125 | 308,696 | ||||||
Cementos Argos SA |
5,520 | 9,236 | ||||||
Cemex SAB de CV* |
535,200 | 344,937 | ||||||
Chia Hsin Cement Corp. |
275,000 | 199,759 | ||||||
China Jushi Co. Ltd., Class A |
5,143 | 15,383 | ||||||
China National Building Material Co. Ltd., Class H |
146,050 | 183,617 | ||||||
China Resources Cement Holdings Ltd. |
68,000 | 57,344 | ||||||
CSG Holding Co. Ltd., Class A |
16,200 | 22,885 | ||||||
Dalmia Bharat Ltd. |
1,710 | 45,952 | ||||||
GCC SAB de CV |
2,300 | 17,147 |
Investments | Shares | Value | ||||||
Construction Materials – (continued) | ||||||||
Goldsun Building Materials Co. Ltd. |
55,000 | $ | 50,830 | |||||
Grasim Industries Ltd. |
6,710 | 154,225 | ||||||
Grupo Argos SA |
178,032 | 553,566 | ||||||
Grupo Argos SA (Preference) |
109,117 | 247,275 | ||||||
Hanil Cement Co. Ltd. |
14,135 | 233,457 | ||||||
Huaxin Cement Co. Ltd., Class A |
3,700 | 9,679 | ||||||
Huaxin Cement Co. Ltd., Class B |
10,400 | 18,470 | ||||||
Indocement Tunggal Prakarsa Tbk. PT |
32,900 | 27,460 | ||||||
JK Cement Ltd. |
530 | 23,469 | ||||||
Lucky Cement Ltd.* |
5,787 | 26,114 | ||||||
Next Science Co. Ltd.* |
2,640 | 41,795 | ||||||
Nuh Cimento Sanayi A/S |
31,350 | 142,092 | ||||||
POSCO Chemical Co. Ltd. |
715 | 89,027 | ||||||
Qassim Cement Co. (The) |
2,860 | 62,219 | ||||||
Ramco Cements Ltd. (The) |
2,289 | 32,601 | ||||||
Saudi Cement Co. |
2,022 | 31,913 | ||||||
Semen Indonesia Persero Tbk. PT |
57,600 | 36,997 | ||||||
Shree Cement Ltd. |
220 | 84,130 | ||||||
Siam Cement PCL (The), NVDR |
11,000 | 130,943 | ||||||
Southern Province Cement Co. |
1,634 | 31,191 | ||||||
SSANGYONG C&E Co. Ltd. |
290 | 1,948 | ||||||
Taiwan Cement Corp. |
181,452 | 314,834 | ||||||
Tangshan Jidong Cement Co. Ltd., Class A |
4,700 | 8,549 | ||||||
Tipco Asphalt PCL, NVDR |
324,500 | 178,960 | ||||||
TPI Polene PCL, NVDR |
395,400 | 20,376 | ||||||
UltraTech Cement Ltd. |
2,367 | 241,376 | ||||||
Universal Cement Corp. |
220,000 | 162,972 | ||||||
Yamama Cement Co.* |
3,763 | 27,789 | ||||||
Yanbu Cement Co. |
2,888 | 29,489 | ||||||
5,011,762 | ||||||||
Consumer Finance – 1.1% | ||||||||
360 DigiTech, Inc., ADR* (b) |
3,465 | 70,721 | ||||||
AEON Credit Service M Bhd. |
49,500 | 167,112 | ||||||
Bajaj Finance Ltd. |
5,445 | 538,107 | ||||||
BFI Finance Indonesia Tbk. PT |
3,982,000 | 295,119 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 231 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Consumer Finance – (continued) | ||||||||
Cholamandalam Investment and Finance Co. Ltd. |
8,525 | $ | 69,987 | |||||
CreditAccess Grameen Ltd.* |
1,166 | 9,784 | ||||||
FinVolution Group, ADR(b) |
74,415 | 455,420 | ||||||
Krungthai Card PCL, NVDR |
21,200 | 36,896 | ||||||
LexinFintech Holdings Ltd., ADR* (b) |
59,400 | 317,196 | ||||||
Mahindra & Mahindra Financial Services Ltd. |
20,141 | 48,281 | ||||||
Manappuram Finance Ltd. |
267,064 | 741,119 | ||||||
Muangthai Capital PCL, NVDR |
20,600 | 37,559 | ||||||
Muthoot Finance Ltd. |
2,226 | 43,632 | ||||||
Samsung Card Co. Ltd. |
1,140 | 33,413 | ||||||
SBI Cards & Payment Services Ltd.* |
5,555 | 78,272 | ||||||
Shriram City Union Finance Ltd. |
11,660 | 337,158 | ||||||
Shriram Transport Finance Co. Ltd. |
7,590 | 145,574 | ||||||
Srisawad Corp. PCL, NVDR |
15,203 | 29,322 | ||||||
Sundaram Finance Ltd. |
1,445 | 46,121 | ||||||
Transaction Capital Ltd. |
28,985 | 84,056 | ||||||
Yixin Group Ltd.* (a) |
153,000 | 28,716 | ||||||
Yulon Finance Corp. |
1,391 | 8,428 | ||||||
3,621,993 | ||||||||
Containers & Packaging – 0.2% | ||||||||
Cheng Loong Corp. |
55,000 | 67,246 | ||||||
Klabin SA* |
27,500 | 111,912 | ||||||
M2N Co. Ltd.* |
848 | 7,177 | ||||||
Polyplex Thailand PCL, NVDR |
242,000 | 177,949 | ||||||
SCG Packaging PCL, NVDR |
27,500 | 53,247 | ||||||
Taiwan Hon Chuan Enterprise Co. Ltd. |
138,000 | 323,060 | ||||||
Ton Yi Industrial Corp. |
53,000 | 24,777 | ||||||
Yunnan Energy New Material Co. Ltd. |
900 | 41,030 | ||||||
806,398 | ||||||||
Distributors – 0.1% | ||||||||
Liaoning Cheng Da Co. Ltd., Class A |
10,600 | 33,708 |
Investments | Shares | Value | ||||||
Distributors – (continued) | ||||||||
Test Rite International Co. Ltd. |
110,000 | $ | 95,528 | |||||
Wuchan Zhongda Group Co. Ltd., Class A |
13,800 | 13,521 | ||||||
Xinhua Winshare Publishing and Media Co. Ltd., Class H(b) |
215,000 | 157,539 | ||||||
300,296 | ||||||||
Diversified Consumer Services – 0.2% | ||||||||
17 Education & Technology Group, Inc., ADR* |
25,650 | 21,161 | ||||||
Cairo Investment & Real Estate Development Co. SAE |
14,617 | 11,817 | ||||||
China
Education Group Holdings |
26,000 | 44,653 | ||||||
China New Higher Education Group Ltd.(a) |
53,000 | 26,776 | ||||||
China
Yuhua Education Corp. |
106,000 | 48,237 | ||||||
Cogna Educacao* |
863,500 | 379,897 | ||||||
Gaotu Techedu, Inc., ADR* (b) |
13,017 | 38,270 | ||||||
Hope Education Group Co. Ltd.(a) (b) |
202,000 | 36,354 | ||||||
Humansoft Holding Co. KSC |
1,431 | 15,893 | ||||||
Koolearn Technology Holding Ltd.* (a) |
27,500 | 15,024 | ||||||
Lung Yen Life Service Corp. |
2,000 | 3,237 | ||||||
New Oriental Education & Technology Group, Inc., ADR* |
31,427 | 64,425 | ||||||
Offcn Education Technology Co. Ltd., Class A* |
4,700 | 7,668 | ||||||
TAL Education Group, ADR* (b) |
13,675 | 55,931 | ||||||
Tianli Education International Holdings Ltd.(a) |
106,000 | 22,211 | ||||||
YDUQS Participacoes SA |
10,500 | 38,856 | ||||||
830,410 | ||||||||
Diversified Financial Services – 0.7% | ||||||||
AVIC Industry-Finance Holdings Co. Ltd., Class A |
23,500 | 14,285 | ||||||
Bajaj Finserv Ltd. |
704 | 167,546 |
See Accompanying Notes to the Financial Statements.
232 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Financial Services – (continued) | ||||||||
Bajaj Holdings & Investment Ltd. |
750 | $ | 48,374 | |||||
Chailease Holding Co. Ltd. |
29,883 | 285,843 | ||||||
China Shandong Hi-Speed Financial Group Ltd.* (b) |
636,000 | 48,237 | ||||||
Corp. Financiera Colombiana SA* |
3,252 | 25,425 | ||||||
CSSC
Hong Kong Shipping Co. |
484,000 | 71,551 | ||||||
Far East Horizon Ltd.(b) |
55,000 | 52,532 | ||||||
FirstRand Ltd. |
188,925 | 721,022 | ||||||
Grupo de Inversiones Suramericana SA |
2,756 | 15,941 | ||||||
Grupo de Inversiones Suramericana SA (Preference) |
4,992 | 24,848 | ||||||
Haci Omer Sabanci Holding A/S |
21,041 | 24,334 | ||||||
L&T Finance Holdings Ltd.* |
26,381 | 28,907 | ||||||
Meritz Financial Group, Inc. |
947 | 26,946 | ||||||
Metro Pacific Investments Corp. |
381,000 | 28,343 | ||||||
National Investments Co. |
124,465 | 90,835 | ||||||
NICE Holdings Co. Ltd. |
728 | 10,529 | ||||||
Piramal Enterprises Ltd. |
2,322 | 80,678 | ||||||
Power Finance Corp. Ltd. |
40,192 | 71,441 | ||||||
REC Ltd. |
22,048 | 43,768 | ||||||
Remgro Ltd. |
15,345 | 135,914 | ||||||
Yuanta Financial Holding Co. Ltd. |
440,000 | 390,816 | ||||||
2,408,115 | ||||||||
Diversified Telecommunication Services – 1.1% | ||||||||
Asia Pacific Telecom Co. Ltd.* |
68,164 | 20,173 | ||||||
China Tower Corp. Ltd., Class H(a) |
880,000 | 114,255 | ||||||
Chunghwa Telecom Co. Ltd. |
82,000 | 325,836 | ||||||
CITIC Telecom International Holdings Ltd. |
802,000 | 284,549 | ||||||
Emirates Telecommunications Group Co. PJSC |
36,080 | 251,459 | ||||||
Hellenic Telecommunications Organization SA |
8,305 | 147,048 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
Indus Towers Ltd. |
18,920 | $ | 68,599 | |||||
Jasmine International PCL, NVDR |
409,700 | 35,312 | ||||||
KT Corp. |
3,575 | 93,310 | ||||||
LG Uplus Corp. |
8,377 | 102,871 | ||||||
Magyar Telekom Telecommunications plc |
224,049 | 309,075 | ||||||
O2 Czech Republic A/S |
106 | 1,218 | ||||||
Oi SA* |
257,200 | 40,608 | ||||||
Ooredoo QPSC |
38,060 | 72,336 | ||||||
Rostelecom PJSC |
33,770 | 44,363 | ||||||
Rostelecom PJSC (Preference) |
15,392 | 18,318 | ||||||
Sarana Menara Nusantara Tbk. PT |
315,700 | 25,849 | ||||||
Saudi Telecom Co. |
12,320 | 384,292 | ||||||
Sejong Telecom, Inc.* |
166,265 | 82,524 | ||||||
Tata Communications Ltd. |
1,646 | 28,738 | ||||||
Telefonica Brasil SA |
16,689 | 134,767 | ||||||
Telekom Malaysia Bhd. |
48,000 | 67,114 | ||||||
Telesites SAB de CV(b) |
22,200 | 20,295 | ||||||
Telkom Indonesia Persero Tbk. PT |
1,743,500 | 467,641 | ||||||
Telkom SA SOC Ltd.* |
160,722 | 536,410 | ||||||
TIME dotCom Bhd. |
9,000 | 9,824 | ||||||
Tower Bersama Infrastructure Tbk. PT |
121,300 | 25,172 | ||||||
True Corp. PCL, NVDR |
562,500 | 68,824 | ||||||
Turk Telekomunikasyon A/S |
19,746 | 15,464 | ||||||
3,796,244 | ||||||||
Electric Utilities – 1.2% | ||||||||
Adani Transmission Ltd.* |
5,667 | 133,757 | ||||||
Alupar Investimento SA |
3,500 | 14,740 | ||||||
Celsia SA ESP |
266,695 | 301,060 | ||||||
Centrais Eletricas Brasileiras SA |
12,900 | 77,418 | ||||||
Centrais Eletricas Brasileiras SA (Preference), Class B |
11,000 | 66,035 | ||||||
CESC Ltd. |
328,110 | 382,088 | ||||||
CEZ A/S |
5,665 | 187,196 | ||||||
Cia de Transmissao de Energia Eletrica Paulista (Preference) |
5,200 | 22,435 |
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) | ||||||||
Electric Utilities – (continued) | ||||||||
Cia Energetica de Minas Gerais |
7,197 | $ | 21,220 | |||||
Cia Energetica de Minas Gerais (Preference) |
40,194 | 91,839 | ||||||
CPFL Energia SA |
4,700 | 21,937 | ||||||
EDP – Energias do Brasil SA |
9,400 | 32,684 | ||||||
Enel Americas SA |
816,974 | 93,145 | ||||||
Enel Chile SA |
730,608 | 30,014 | ||||||
Energisa SA |
4,800 | 33,737 | ||||||
Enerjisa Enerji A/S(a) |
7,676 | 9,388 | ||||||
Engie Energia Chile SA |
193,765 | 112,954 | ||||||
Equatorial Energia SA |
27,500 | 111,620 | ||||||
Federal Grid Co. Unified Energy System PJSC |
12,705,298 | 33,195 | ||||||
First Philippine Holdings Corp. |
86,900 | 128,428 | ||||||
Holding Co. ADMIE IPTO SA |
59,575 | 175,805 | ||||||
Inter RAO UES PJSC |
1,596,292 | 108,079 | ||||||
Interconexion Electrica SA ESP |
14,520 | 86,508 | ||||||
Korea Electric Power Corp. |
7,260 | 140,410 | ||||||
Light SA |
148,500 | 255,008 | ||||||
Manila Electric Co. |
12,350 | 70,312 | ||||||
Mosenergo PJSC |
4,455,000 | 140,943 | ||||||
Neoenergia SA |
4,700 | 12,924 | ||||||
Power Grid Corp. of India Ltd. |
119,072 | 294,256 | ||||||
Public Power Corp. SA* |
2,126 | 23,065 | ||||||
ROSSETI PJSC |
1,466,436 | 28,774 | ||||||
RusHydro PJSC |
821,000 | 9,407 | ||||||
Saudi Electricity Co. |
26,510 | 201,428 | ||||||
SJVN Ltd. |
254,705 | 96,431 | ||||||
Tata Power Co. Ltd. (The) |
36,575 | 104,673 | ||||||
Tenaga Nasional Bhd. |
100,900 | 235,377 | ||||||
Torrent Power Ltd. |
6,625 | 44,232 | ||||||
Transmissora Alianca de Energia Eletrica SA |
5,800 | 37,720 | ||||||
3,970,242 | ||||||||
Electrical Equipment – 1.2% | ||||||||
ABB India Ltd. |
427 | 12,088 | ||||||
ABB Power Products & Systems India Ltd. |
371 | 10,962 | ||||||
AcBel Polytech, Inc. |
43,000 | 53,502 |
Investments | Shares | Value | ||||||
Electrical Equipment – (continued) | ||||||||
Aeris Industria E Comercio De Equipamentos Para Geracao De Energia SA* |
5,500 | $ | 7,689 | |||||
Amara Raja Batteries Ltd. |
1,222 | 11,108 | ||||||
Bharat Heavy Electricals Ltd.* |
62,699 | 57,147 | ||||||
CG Power & Industrial Solutions Ltd.* |
336,545 | 657,528 | ||||||
Chicony Power Technology Co. Ltd. |
71,000 | 177,956 | ||||||
China High Speed Transmission Equipment Group Co. Ltd.* (b) |
220,000 | 170,818 | ||||||
Chung-Hsin Electric & Machinery Manufacturing Corp. |
28,000 | 41,433 | ||||||
CS Wind Corp. |
636 | 37,772 | ||||||
Dongfang Electric Corp. Ltd., Class A |
9,400 | 26,661 | ||||||
Doosan Fuel Cell Co. Ltd.* |
690 | 30,823 | ||||||
Doosan Heavy Industries & Construction Co. Ltd.* |
5,500 | 114,843 | ||||||
Ecopro BM Co. Ltd. |
220 | 77,171 | ||||||
ElSewedy Electric Co. |
265,033 | 145,085 | ||||||
Fangda Carbon New Material Co. Ltd., Class A |
5,300 | 8,895 | ||||||
Gotion High-tech Co. Ltd., Class A* |
4,800 | 44,180 | ||||||
Graphite India Ltd. |
4,240 | 30,373 | ||||||
Havells India Ltd. |
4,620 | 77,921 | ||||||
HEG Ltd. |
1,060 | 29,131 | ||||||
Hyosung Heavy Industries Corp.* |
2,530 | 146,143 | ||||||
Hyundai Electric & Energy System Co. Ltd.* |
12,265 | 231,960 | ||||||
Korea Electric Terminal Co. Ltd. |
3,795 | 244,545 | ||||||
Kung Long Batteries Industrial Co. Ltd. |
1,000 | 5,070 | ||||||
LS Corp. |
1,320 | 70,713 | ||||||
LS Electric Co. Ltd. |
456 | 22,984 | ||||||
Ming Yang Smart Energy Group Ltd., Class A |
10,000 | 48,427 | ||||||
NARI Technology Co. Ltd., Class A |
12,400 | 75,435 |
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) | ||||||||
Electrical Equipment – (continued) | ||||||||
Sarkuysan Elektrolitik Bakir Sanayi ve Ticaret A/S |
124,410 | $ | 239,112 | |||||
Shanghai Electric Group Co. Ltd., Class A |
24,000 | 17,814 | ||||||
Shanghai Electric Group Co. Ltd., Class H(b) |
94,000 | 26,463 | ||||||
Shanghai Liangxin Electrical Co. Ltd., Class A |
6,500 | 16,557 | ||||||
Ta Ya Electric Wire & Cable |
51,750 | 46,058 | ||||||
Taihan Electric Wire Co. Ltd.* |
25,960 | 50,096 | ||||||
Tatung Co. Ltd.* |
46,000 | 56,904 | ||||||
TBEA Co. Ltd., Class A |
10,600 | 44,740 | ||||||
Teco Electric and Machinery Co. Ltd. |
22,000 | 23,852 | ||||||
Unison Co. Ltd.* |
8,480 | 25,036 | ||||||
V-Guard Industries Ltd. |
11,448 | 39,275 | ||||||
Voltronic Power Technology Corp. |
1,458 | 85,199 | ||||||
Walsin Lihwa Corp. |
53,000 | 49,458 | ||||||
WEG SA |
33,000 | 216,605 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class A |
10,600 | 30,694 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H |
28,200 | 63,222 | ||||||
Zhefu Holding Group Co. Ltd., Class A |
21,200 | 23,720 | ||||||
Zhejiang Chint Electrics Co. Ltd., Class A |
4,700 | 44,244 | ||||||
Zhuzhou CRRC Times Electric Co. Ltd., Class H* |
23,400 | 112,201 | ||||||
3,879,613 | ||||||||
Electronic Equipment, Instruments & Components – 3.4% | ||||||||
AAC Technologies Holdings, Inc.(b) |
14,000 | 61,100 | ||||||
Apex International Co. Ltd. |
60,000 | 168,294 | ||||||
AU Optronics Corp. |
330,000 | 227,844 | ||||||
Aurora Corp. |
8,900 | 28,420 | ||||||
Avary Holding Shenzhen Co. Ltd., Class A |
4,700 | 25,699 | ||||||
BH Co. Ltd. |
11,880 | 190,113 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
BOE Technology Group Co. Ltd., Class A |
66,500 | $ | 51,024 | |||||
Career Technology MFG. Co. Ltd.* |
22,556 | 20,278 | ||||||
Chang Wah Electromaterials, Inc. |
32,000 | 38,895 | ||||||
Cheng Uei Precision Industry Co. Ltd. |
180,000 | 249,852 | ||||||
Chilisin Electronics Corp. |
113,490 | 351,385 | ||||||
Chroma ATE, Inc. |
8,000 | 52,070 | ||||||
Compeq Manufacturing Co. Ltd. |
40,000 | 58,040 | ||||||
Coretronic Corp. |
23,000 | 47,475 | ||||||
Daeduck Electronics Co. Ltd. |
2,067 | 30,336 | ||||||
Daejoo Electronic Materials Co. Ltd. |
742 | 66,291 | ||||||
Delta Electronics Thailand PCL, NVDR |
7,800 | 97,786 | ||||||
Delta Electronics, Inc. |
39,000 | 343,600 | ||||||
Dynapack International Technology Corp. |
66,000 | 227,844 | ||||||
E Ink Holdings, Inc. |
11,000 | 36,352 | ||||||
Elite Material Co. Ltd. |
5,000 | 43,242 | ||||||
Erajaya Swasembada Tbk. PT |
3,899,500 | 178,908 | ||||||
FLEXium Interconnect, Inc.* |
10,000 | 34,558 | ||||||
Foxconn Technology Co. Ltd. |
32,000 | 79,170 | ||||||
General Interface Solution Holding Ltd. |
5,000 | 17,459 | ||||||
Genius Electronic Optical Co. Ltd. |
2,237 | 34,389 | ||||||
Global Brands Manufacture Ltd. |
151,800 | 192,967 | ||||||
GoerTek, Inc., Class A |
4,700 | 31,978 | ||||||
Gold Circuit Electronics Ltd. |
21,000 | 50,143 | ||||||
Hana Microelectronics PCL, NVDR |
17,100 | 41,227 | ||||||
Hannstar Board Corp. |
165,000 | 247,424 | ||||||
HannStar Display Corp. |
39,000 | 19,775 | ||||||
HannsTouch Solution, Inc. |
106,000 | 45,360 | ||||||
Hengdian Group DMEGC Magnetics Co. Ltd., Class A |
10,600 | 23,405 | ||||||
Holy Stone Enterprise Co. Ltd. |
69,000 | 292,788 |
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) | ||||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Hon Hai Precision Industry Co. Ltd. |
440,000 | $ | 1,693,007 | |||||
Honeywell Automation India Ltd. |
32 | 17,920 | ||||||
Huagong Tech Co. Ltd., Class A |
4,700 | 21,152 | ||||||
Iljin Materials Co. Ltd. |
477 | 41,024 | ||||||
Inari Amertron Bhd. |
71,600 | 66,914 | ||||||
Innolux Corp. |
385,000 | 231,206 | ||||||
INTOPS Co. Ltd. |
6,325 | 126,116 | ||||||
JNTC Co. Ltd.* |
9,240 | 65,156 | ||||||
KCE Electronics PCL, NVDR |
18,900 | 49,553 | ||||||
Kingboard Holdings Ltd. |
28,000 | 122,560 | ||||||
Kingboard Laminates Holdings Ltd. |
10,000 | 15,683 | ||||||
L&F Co. Ltd. |
550 | 86,650 | ||||||
Largan Precision Co. Ltd. |
2,000 | 148,875 | ||||||
LG Display Co. Ltd.* |
7,134 | 120,269 | ||||||
LG Innotek Co. Ltd. |
495 | 88,745 | ||||||
Lingyi iTech Guangdong Co., Class A* |
15,900 | 16,548 | ||||||
Lotes Co. Ltd. |
2,299 | 47,785 | ||||||
Luxshare Precision Industry Co. Ltd., Class A |
16,500 | 99,630 | ||||||
Mcnex Co. Ltd. |
7,015 | 260,237 | ||||||
Merry Electronics Co. Ltd. |
99,235 | 293,332 | ||||||
MH Development Ltd.* ‡ (c) |
22,000 | — | ||||||
Nan Ya Printed Circuit Board Corp. |
5,000 | 88,192 | ||||||
OFILM Group Co. Ltd., Class A |
4,700 | 5,494 | ||||||
Park Systems Corp. |
371 | 37,686 | ||||||
Partron Co. Ltd. |
23,285 | 186,113 | ||||||
Raytron Technology Co. Ltd., Class A |
2,491 | 28,171 | ||||||
Samsung Electro-Mechanics Co. Ltd. |
2,090 | 284,378 | ||||||
Samsung SDI Co. Ltd. |
1,155 | 725,489 | ||||||
Sang-A Frontec Co. Ltd. |
275 | 14,826 | ||||||
Shengyi Technology Co. Ltd., Class A |
4,700 | 16,342 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Shenzhen Kinwong Electronic Co. Ltd., Class A |
5,000 | $ | 20,197 | |||||
Shenzhen Sunlord Electronics Co. Ltd., Class A |
5,500 | 28,405 | ||||||
Simplo Technology Co. Ltd. |
5,200 | 55,911 | ||||||
Sinbon Electronics Co. Ltd. |
3,000 | 24,813 | ||||||
SOLUM Co. Ltd.* |
1,802 | 40,325 | ||||||
Solus Advanced Materials Co. Ltd. |
329 | 23,171 | ||||||
Speed Tech Corp. |
55,000 | 167,718 | ||||||
Sunny Optical Technology Group Co. Ltd. |
14,100 | 381,000 | ||||||
Supreme Electronics Co. Ltd. |
196,331 | 316,646 | ||||||
Synnex Technology International Corp. |
61,000 | 118,014 | ||||||
Taiflex Scientific Co. Ltd. |
95,000 | 162,783 | ||||||
Taiwan PCB Techvest Co. Ltd. |
110,000 | 185,519 | ||||||
Taiwan Union Technology Corp. |
17,000 | 58,381 | ||||||
Tianma Microelectronics Co. Ltd., Class A |
9,400 | 18,082 | ||||||
Tong Hsing Electronic Industries Ltd. |
3,022 | 28,689 | ||||||
Tripod Technology Corp. |
14,000 | 59,155 | ||||||
Unimicron Technology Corp. |
24,000 | 163,979 | ||||||
Unisplendour Corp. Ltd., Class A |
6,580 | 28,503 | ||||||
Unitech Printed Circuit Board Corp.* |
53,000 | 34,497 | ||||||
Universal Scientific Industrial Shanghai Co. Ltd., Class A |
4,700 | 10,194 | ||||||
Vidente Co. Ltd.* |
1,431 | 17,634 | ||||||
VS Industry Bhd. |
45,600 | 17,399 | ||||||
Wah Lee Industrial Corp. |
85,640 | 261,769 | ||||||
Walsin Technology Corp.* |
9,378 | 50,922 | ||||||
Wingtech Technology Co. Ltd., Class A |
3,400 | 58,316 | ||||||
Wintek Corp.* ‡ (c) |
64,000 | — | ||||||
WPG Holdings Ltd. |
55,440 | 103,470 | ||||||
Wuhan Guide Infrared Co. Ltd., Class A |
6,580 | 22,313 | ||||||
WUS Printed Circuit Kunshan Co. Ltd., Class A |
16,170 | 25,875 |
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) | ||||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Yageo Corp. |
13,575 | $ | 211,861 | |||||
Zhejiang Dahua Technology Co. Ltd., Class A |
2,900 | 9,870 | ||||||
Zhen Ding Technology Holding Ltd. |
23,150 | 79,918 | ||||||
11,489,873 | ||||||||
Energy Equipment & Services – 0.1% | ||||||||
Bumi Armada Bhd.* |
1,743,500 | 214,727 | ||||||
China Oilfield Services Ltd., Class A |
9,400 | 21,858 | ||||||
China Oilfield Services Ltd., Class H |
18,000 | 17,331 | ||||||
Dialog Group Bhd. |
51,700 | 35,332 | ||||||
Sapura Energy Bhd.* |
5,049,000 | 121,927 | ||||||
Serba Dinamik Holdings Bhd.(c) |
54,180 | 4,579 | ||||||
415,754 | ||||||||
Entertainment – 1.0% | ||||||||
Alibaba Pictures Group Ltd.* (b) |
160,000 | 17,072 | ||||||
Archosaur Games, Inc.(a) (b) |
110,000 | 131,790 | ||||||
Bilibili, Inc., ADR* (b) |
4,675 | 342,678 | ||||||
CJ CGV Co. Ltd.* |
1,732 | 47,356 | ||||||
CMGE Technology Group Ltd.* (b) |
770,000 | 301,901 | ||||||
Com2uSCorp |
133 | 14,625 | ||||||
DouYu International Holdings Ltd., ADR* |
1,081 | 3,405 | ||||||
Fire Rock Holdings Ltd. |
106,000 | 33,657 | ||||||
GOLFZON Co. Ltd. |
1,650 | 199,799 | ||||||
HUYA, Inc., ADR* (b) |
3,314 | 27,241 | ||||||
HYBE Co. Ltd.* |
385 | 110,372 | ||||||
International Games System Co. Ltd. |
1,000 | 25,676 | ||||||
iQIYI, Inc., ADR* (b) |
4,876 | 40,373 | ||||||
JYP Entertainment Corp. |
1,589 | 71,254 | ||||||
Kakao Games Corp.* |
611 | 41,725 | ||||||
Kingsoft Corp. Ltd. |
16,000 | 68,800 | ||||||
NCSoft Corp. |
311 | 166,871 | ||||||
Neowiz* |
7,535 | 168,942 |
Investments | Shares | Value | ||||||
Entertainment – (continued) | ||||||||
NetDragon Websoft Holdings Ltd. |
120,500 | $ | 264,885 | |||||
NetEase, Inc. |
39,500 | 780,449 | ||||||
Netmarble Corp.(a) |
410 | 43,331 | ||||||
NHN Corp.* |
315 | 21,565 | ||||||
Pearl Abyss Corp.* |
990 | 88,024 | ||||||
Perfect World Co. Ltd., Class A |
4,100 | 11,135 | ||||||
PVR Ltd.* |
2,703 | 60,558 | ||||||
RS PCL, NVDR* |
47,700 | 25,156 | ||||||
SM Entertainment Co. Ltd.* |
1,029 | 68,861 | ||||||
SMI Holdings Group Ltd.* ‡ (c) |
72,000 | — | ||||||
Tencent Music Entertainment Group, ADR* |
10,537 | 82,821 | ||||||
Webzen, Inc.* |
474 | 10,952 | ||||||
Wemade Co. Ltd. |
598 | 93,547 | ||||||
Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd., Class A |
4,700 | 17,480 | ||||||
XD, Inc.* (a) |
8,000 | 45,558 | ||||||
XPEC Entertainment, Inc.* ‡ (c) |
14,800 | — | ||||||
Zhejiang Century Huatong Group Co. Ltd., Class A* |
11,280 | 13,097 | ||||||
3,440,956 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.3% | ||||||||
Concentradora Fibra Danhos SA de CV |
444,600 | 538,463 | ||||||
CPN Retail Growth Leasehold REIT* |
44,100 | 28,441 | ||||||
DDMP Reit, Inc. |
3,520,000 | 125,689 | ||||||
Embassy Office Parks REIT |
9,600 | 44,825 | ||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S |
1,052,700 | 215,682 | ||||||
Equites Property Fund Ltd.(b) |
27,560 | 36,970 | ||||||
Fibra Uno Administracion SA de CV(b) |
104,500 | 104,078 | ||||||
Fortress REIT Ltd., Class A |
31,313 | 27,399 | ||||||
Growthpoint Properties Ltd. |
114,331 | 97,482 | ||||||
Hyprop Investments Ltd. |
150,975 | 293,905 | ||||||
IGB REIT |
6,200 | 2,515 | ||||||
JR Reit XXVII |
62,150 | 296,244 |
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) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
KLCCP Stapled Group |
6,900 | $ | 11,347 | |||||
Korea Asset In Trust Co. Ltd. |
27,225 | 102,745 | ||||||
LOTTE Reit Co. Ltd. |
9,858 | 47,748 | ||||||
Pavilion REIT |
15,000 | 5,144 | ||||||
PLA Administradora Industrial S de RL de CV |
414,100 | 581,349 | ||||||
Prologis Property Mexico SA de CV(b) |
10,400 | 23,991 | ||||||
Redefine Properties Ltd.* |
2,815,147 | 833,432 | ||||||
Resilient REIT Ltd. |
165,440 | 609,516 | ||||||
Sunway REIT |
39,400 | 13,891 | ||||||
Vukile Property Fund Ltd. |
451,550 | 360,943 | ||||||
Yuexiu REIT |
53,000 | 23,097 | ||||||
4,424,896 | ||||||||
Food & Staples Retailing – 0.9% | ||||||||
Abdullah Al Othaim Markets Co. |
944 | 29,144 | ||||||
Al Meera Consumer Goods Co. QSC |
1,990 | 10,707 | ||||||
Atacadao SA |
7,700 | 22,730 | ||||||
Avenue Supermarts Ltd.* (a) |
3,575 | 221,307 | ||||||
Berli Jucker PCL |
500 | 509 | ||||||
Berli Jucker PCL, NVDR |
27,700 | 28,174 | ||||||
BGF retail Co. Ltd. |
239 | 33,031 | ||||||
Bid Corp. Ltd. |
6,160 | 132,861 | ||||||
BIM Birlesik Magazalar A/S |
7,621 | 49,260 | ||||||
Cencosud SA |
49,665 | 72,846 | ||||||
Cia Brasileira de Distribuicao |
6,430 | 29,121 | ||||||
Clicks Group Ltd. |
4,675 | 85,762 | ||||||
Cosco Capital, Inc. |
1,674,400 | 173,386 | ||||||
CP ALL PCL, NVDR |
88,000 | 169,728 | ||||||
Dis-Chem Pharmacies Ltd.(a) |
17,784 | 37,382 | ||||||
Dongsuh Cos., Inc. |
859 | 25,434 | ||||||
E-MART, Inc. |
605 | 86,980 | ||||||
Grupo Comercial Chedraui SA de CV |
60,500 | 119,569 | ||||||
GS Retail Co. Ltd. |
1,333 | 36,723 | ||||||
Hyundai Greenfood Co. Ltd. |
27,205 | 225,360 | ||||||
InRetail Peru Corp.(a) |
848 | 31,376 | ||||||
Magnit PJSC |
2,296 | 209,244 | ||||||
Migros Ticaret A/S* |
152 | 556 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
Organizacion Soriana SAB de CV, Class B* (b) |
135,500 | $ | 163,381 | |||||
Philippine Seven Corp.* |
5,321 | 9,605 | ||||||
Pick n Pay Stores Ltd. |
6,784 | 26,645 | ||||||
President Chain Store Corp. |
13,000 | 131,363 | ||||||
Puregold Price Club, Inc. |
26,060 | 21,842 | ||||||
Raia Drogasil SA* |
20,900 | 86,203 | ||||||
Sendas Distribuidora SA |
27,500 | 74,592 | ||||||
Shoprite Holdings Ltd. |
10,010 | 119,521 | ||||||
SMU SA |
1,112,815 | 111,087 | ||||||
Sok Marketler Ticaret A/S |
7,298 | 8,425 | ||||||
SPAR Group Ltd. (The) |
3,102 | 39,791 | ||||||
Sumber Alfaria Trijaya Tbk. PT |
445,200 | 37,552 | ||||||
Sun Art Retail Group Ltd.(b) |
24,000 | 14,130 | ||||||
Wal-Mart de Mexico SAB de CV |
104,500 | 365,290 | ||||||
Yonghui Superstores Co. Ltd., Class A |
26,500 | 16,274 | ||||||
3,056,891 | ||||||||
Food Products – 2.8% | ||||||||
Agthia Group PJSC |
11,024 | 17,827 | ||||||
Alicorp SAA |
246,345 | 398,637 | ||||||
Almarai Co. JSC |
5,995 | 84,549 | ||||||
Astra Agro Lestari Tbk. PT |
20,800 | 15,746 | ||||||
Avanti Feeds Ltd. |
507 | 3,770 | ||||||
AVI Ltd. |
16,464 | 85,678 | ||||||
Beijing Dabeinong Technology Group Co. Ltd., Class A |
5,300 | 7,106 | ||||||
Binggrae Co. Ltd. |
2,808 | 133,846 | ||||||
Bombay Burmah Trading Co. |
9,324 | 134,366 | ||||||
BRF SA* |
17,100 | 70,469 | ||||||
Britannia Industries Ltd. |
2,183 | 107,159 | ||||||
Century Pacific Food, Inc. |
17,700 | 9,937 | ||||||
Charoen Pokphand Foods PCL, NVDR |
121,000 | 92,074 | ||||||
Charoen Pokphand Indonesia Tbk. PT |
134,300 | 58,773 | ||||||
Cherkizovo Group PJSC |
2,594 | 129,533 | ||||||
China Feihe Ltd.(a) |
55,000 | 91,631 | ||||||
China Huiyuan Juice Group Ltd.* ‡ (c) |
24,000 | – |
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) | ||||||||
Food Products – (continued) | ||||||||
China Mengniu Dairy Co. Ltd.* |
55,000 | $ | 350,332 | |||||
China
Modern Dairy Holdings |
2,090,000 | 394,945 | ||||||
Chongqing Fuling Zhacai Group Co. Ltd., Class A |
5,000 | 27,253 | ||||||
CJ CheilJedang Corp. |
349 | 113,491 | ||||||
CJ CheilJedang Corp. (Preference) |
104 | 17,266 | ||||||
COFCO Joycome Foods Ltd.* (a) (b) |
1,210,000 | 469,749 | ||||||
CP Pokphand Co. Ltd. |
334,000 | 47,229 | ||||||
Daesang Corp. |
11,330 | 231,244 | ||||||
Dali Foods Group Co. Ltd.(a) |
45,500 | 25,326 | ||||||
Dongwon F&B Co. Ltd. |
582 | 102,101 | ||||||
Dongwon Industries Co. Ltd. |
550 | 107,077 | ||||||
Foshan Haitian Flavouring & Food Co. Ltd., Class A |
4,550 | 83,203 | ||||||
Genting Plantations Bhd. |
10,400 | 18,334 | ||||||
Gruma SAB de CV, Class B |
5,225 | 61,488 | ||||||
Grupo Bimbo SAB de CV, Series A |
33,000 | 97,893 | ||||||
Grupo Nutresa SA |
3,592 | 20,833 | ||||||
Harim Holdings Co. Ltd. |
18,127 | 150,005 | ||||||
Health & Happiness H&H International Holdings Ltd. |
110,000 | 258,206 | ||||||
Heilongjiang Agriculture Co. Ltd., Class A |
10,600 | 22,793 | ||||||
Henan Shuanghui Investment & Development Co. Ltd., Class A |
4,700 | 21,666 | ||||||
Hortifrut SA |
143,935 | 152,978 | ||||||
HUISHAN DAIRY* ‡ (c) |
158,000 | — | ||||||
Indofood CBP Sukses Makmur Tbk. PT |
51,800 | 32,175 | ||||||
Indofood Sukses Makmur Tbk. PT |
100,800 | 45,179 | ||||||
Industrias Bachoco SAB de CV, Series B |
85,500 | 303,909 | ||||||
Inner Mongolia Yili Industrial Group Co. Ltd., Class A |
8,200 | 55,100 | ||||||
International Holding Co. PJSC* |
9,625 | 383,884 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
IOI Corp. Bhd. |
66,000 | $ | 62,637 | |||||
Japfa Comfeed Indonesia Tbk. PT |
249,100 | 30,330 | ||||||
JBS SA |
33,100 | 229,298 | ||||||
Jiangxi Zhengbang Technology Co. Ltd., Class A |
4,700 | 7,359 | ||||||
Kuala Lumpur Kepong Bhd. |
10,831 | 56,548 | ||||||
Lien Hwa Industrial Holdings Corp. |
15,400 | 30,901 | ||||||
Lotte Confectionery Co. Ltd. |
990 | 108,866 | ||||||
M Dias Branco SA* |
5,300 | 29,100 | ||||||
Maeil Dairies Co. Ltd. |
2,255 | 136,047 | ||||||
Marfrig Global Foods SA |
10,600 | 49,831 | ||||||
Mayora Indah Tbk. PT |
83,900 | 13,917 | ||||||
Mezzan Holding Co. KSCC |
92,345 | 192,379 | ||||||
Muyuan Foods Co. Ltd., Class A |
7,420 | 66,219 | ||||||
Namchow Holdings Co. Ltd. |
74,000 | 128,795 | ||||||
Nestle India Ltd. |
825 | 209,333 | ||||||
Nestle Malaysia Bhd. |
900 | 29,232 | ||||||
New Hope Liuhe Co. Ltd., Class A* |
20,000 | 44,974 | ||||||
NongShim Co. Ltd. |
56 | 13,586 | ||||||
Orion Corp. |
550 | 55,539 | ||||||
Orion Holdings Corp. |
12,828 | 175,643 | ||||||
Ottogi Corp. |
15 | 6,174 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk. PT |
1,666,500 | 164,092 | ||||||
PPB Group Bhd. |
14,080 | 61,815 | ||||||
QL Resources Bhd. |
25,395 | 30,970 | ||||||
R&B Food Supply PCL, NVDR |
53,000 | 32,583 | ||||||
Samyang Corp. |
1,980 | 115,728 | ||||||
Samyang Foods Co. Ltd. |
2,563 | 179,413 | ||||||
Samyang Holdings Corp. |
3,080 | 271,482 | ||||||
San Miguel Food and Beverage, Inc. |
15,960 | 24,062 | ||||||
Sao Martinho SA |
5,300 | 36,010 | ||||||
Saudia Dairy & Foodstuff Co. |
1,166 | 50,981 | ||||||
Savola Group (The) |
6,215 | 60,644 | ||||||
Sichuan Teway Food Group Co. Ltd., Class A |
10,800 | 41,888 | ||||||
Sime Darby Plantation Bhd. |
61,003 | 59,073 |
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) | ||||||||
Food Products – (continued) | ||||||||
Standard Foods Corp. |
14,652 | $ | 27,293 | |||||
Sunjin Co. Ltd. |
6,270 | 69,485 | ||||||
Taiwan TEA Corp.* |
63,000 | 47,349 | ||||||
Tata Consumer Products Ltd. |
11,679 | 126,255 | ||||||
Tech-Bank Food Co. Ltd., Class A |
7,000 | 6,870 | ||||||
Thai Union Group PCL, NVDR |
88,000 | 55,427 | ||||||
Thai Vegetable Oil PCL, NVDR |
15,570 | 14,663 | ||||||
Tiger Brands Ltd. |
3,445 | 43,668 | ||||||
Tingyi Cayman Islands Holding Corp. |
28,000 | 52,407 | ||||||
Toly Bread Co. Ltd., Class A |
5,300 | 26,089 | ||||||
Tongwei Co. Ltd., Class A |
11,000 | 98,375 | ||||||
Ulker Biskuvi Sanayi A/S |
87,175 | 182,960 | ||||||
Uni-President China Holdings Ltd. |
3,000 | 2,561 | ||||||
Uni-President Enterprises Corp. |
165,000 | 395,167 | ||||||
Universal Robina Corp. |
16,800 | 45,991 | ||||||
Want Want China Holdings Ltd. |
110,000 | 85,267 | ||||||
Yihai International Holding Ltd.* (b) |
7,000 | 41,168 | ||||||
Yuan Longping High-tech Agriculture Co. Ltd., Class A* |
10,600 | 34,769 | ||||||
Zhou Hei Ya International Holdings Co. Ltd.* (a) (b) |
14,000 | 12,616 | ||||||
Zydus Wellness Ltd. |
1,870 | 51,307 | ||||||
9,259,896 | ||||||||
Gas Utilities – 0.7% | ||||||||
Adani Total Gas Ltd. |
5,391 | 103,632 | ||||||
Beijing Enterprises Holdings Ltd. |
16,000 | 61,498 | ||||||
China Gas Holdings Ltd. |
44,000 | 110,070 | ||||||
China Resources Gas Group Ltd. |
26,000 | 139,709 | ||||||
ENN Energy Holdings Ltd. |
16,500 | 285,710 | ||||||
GAIL India Ltd. |
67,320 | 133,820 | ||||||
Grupo Energia Bogota SA ESP |
102,740 | 73,637 |
Investments | Shares | Value | ||||||
Gas Utilities – (continued) | ||||||||
Gujarat Gas Ltd. |
2,679 | $ | 22,264 | |||||
Gujarat State Petronet Ltd. |
14,375 | 58,580 | ||||||
Indraprastha Gas Ltd. |
4,564 | 28,884 | ||||||
Korea Gas Corp.* |
999 | 37,872 | ||||||
Kunlun Energy Co. Ltd. |
130,000 | 118,986 | ||||||
Mahanagar Gas Ltd.(a) |
1,456 | 19,505 | ||||||
Perusahaan Gas Negara Tbk. PT* |
435,600 | 46,427 | ||||||
Petronas Gas Bhd. |
16,500 | 66,701 | ||||||
Promigas SA ESP |
144,460 | 280,546 | ||||||
Towngas China Co. Ltd.* |
495,000 | 340,434 | ||||||
Zhongyu Gas Holdings Ltd. |
440,000 | 421,954 | ||||||
2,350,229 | ||||||||
Health Care Equipment & Supplies – 0.3% | ||||||||
AK Medical Holdings Ltd.(a) (b) |
24,000 | 24,959 | ||||||
Blue Sail Medical Co. Ltd., Class A |
4,700 | 10,635 | ||||||
Boditech Med, Inc. |
689 | 9,463 | ||||||
DIO Corp.* |
520 | 16,754 | ||||||
Eoflow Co. Ltd.* |
689 | 31,427 | ||||||
Hartalega Holdings Bhd. |
31,800 | 45,001 | ||||||
Humasis Co. Ltd.* |
2,650 | 36,511 | ||||||
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A |
5,300 | 29,178 | ||||||
Kangji Medical Holdings Ltd. |
25,000 | 28,377 | ||||||
Kossan Rubber Industries Bhd. |
22,800 | 12,994 | ||||||
Lifetech Scientific Corp.* |
110,000 | 51,189 | ||||||
Microport Scientific Corp.(b) |
11,498 | 54,245 | ||||||
Osstem Implant Co. Ltd. |
318 | 33,608 | ||||||
PCL, Inc.* |
530 | 20,932 | ||||||
Peijia Medical Ltd.* (a) |
21,000 | 51,292 | ||||||
Poly Medicure Ltd. |
3,604 | 44,455 | ||||||
Shandong Pharmaceutical Glass Co. Ltd., Class A |
5,300 | 28,168 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H |
36,000 | 61,365 | ||||||
Sri Trang Gloves Thailand PCL, NVDR |
45,300 | 41,638 | ||||||
St Shine Optical Co. Ltd. |
2,000 | 21,181 | ||||||
Sugentech, Inc.* |
7,865 | 92,209 |
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) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Suheung Co. Ltd. |
4,015 | $ | 164,407 | |||||
Supermax Corp. Bhd. |
64,124 | 29,731 | ||||||
Top Glove Corp. Bhd. |
180,600 | 118,626 | ||||||
Venus MedTech Hangzhou, Inc., Class H* (a) (b) |
4,000 | 18,537 | ||||||
1,076,882 | ||||||||
Health Care Providers & Services – 0.7% | ||||||||
Al Hammadi Co. for Development and Investment |
5,225 | 58,924 | ||||||
Apollo Hospitals Enterprise Ltd. |
1,800 | 102,451 | ||||||
Bangkok Chain Hospital PCL, NVDR |
4,800 | 2,936 | ||||||
Bangkok Dusit Medical Services PCL, NVDR |
88,000 | 62,322 | ||||||
Bumrungrad Hospital PCL, NVDR |
6,600 | 28,940 | ||||||
Celltrion Healthcare Co. Ltd.* |
1,885 | 130,501 | ||||||
Chabiotech Co. Ltd.* |
3,303 | 55,260 | ||||||
China National Accord Medicines Corp. Ltd., Class B |
9,964 | 24,951 | ||||||
China Resources Medical Holdings Co. Ltd. |
26,500 | 18,566 | ||||||
Chularat Hospital PCL, NVDR |
183,100 | 20,968 | ||||||
Cleopatra Hospital* |
33,041 | 10,558 | ||||||
Dallah Healthcare Co. |
2,544 | 49,172 | ||||||
Diagnosticos da America SA* |
990 | 6,152 | ||||||
Dr Lal PathLabs Ltd.(a) |
430 | 20,149 | ||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
1,760 | 77,797 | ||||||
Fleury SA |
3,600 | 12,026 | ||||||
Fortis Healthcare Ltd.* |
28,990 | 94,580 | ||||||
Genertec Universal Medical Group Co. Ltd.(a) (b) |
455,000 | 343,924 | ||||||
Hapvida Participacoes e Investimentos SA(a) |
26,900 | 55,069 | ||||||
HLB Life Science CO Ltd.* |
3,795 | 48,552 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Huadong Medicine Co. Ltd., Class A |
5,300 | $ | 30,346 | |||||
Hygeia
Healthcare Holdings Co. |
6,400 | 56,439 | ||||||
IHH Healthcare Bhd. |
66,000 | 104,236 | ||||||
Jinxin Fertility Group Ltd.* (a) (b) |
12,000 | 17,000 | ||||||
KPJ Healthcare Bhd. |
14,124 | 3,888 | ||||||
Life Healthcare Group Holdings Ltd.* |
30,687 | 49,099 | ||||||
Max Healthcare Institute Ltd.* |
3,575 | 15,819 | ||||||
Medipost Co. Ltd.* |
446 | 8,664 | ||||||
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A* |
9,400 | 10,606 | ||||||
Metro Healthcare Indonesia TBK PT* |
641,300 | 20,732 | ||||||
Metropolis Healthcare Ltd.(a) |
1,540 | 60,920 | ||||||
Mitra Keluarga Karyasehat Tbk. PT(a) |
100,200 | 16,125 | ||||||
Mouwasat Medical Services Co. |
688 | 32,979 | ||||||
Netcare Ltd.* |
79,319 | 88,242 | ||||||
Notre Dame Intermedica Participacoes SA |
12,144 | 138,265 | ||||||
Odontoprev SA |
4,900 | 11,657 | ||||||
Ping An Healthcare and Technology Co. Ltd.* (a) (b) |
11,000 | 53,522 | ||||||
Qualicorp Consultoria e Corretora de Seguros SA |
14,700 | 44,619 | ||||||
Rede D’Or Sao Luiz SA(a) |
16,500 | 172,698 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class A |
4,700 | 13,698 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H |
23,500 | 43,079 | ||||||
Sinopharm Group Co. Ltd., Class H |
44,000 | 104,979 | ||||||
2,321,410 | ||||||||
Health Care Technology –0.0%(d) | ||||||||
Alibaba Health Information Technology Ltd.* (b) |
84,000 | 106,147 | ||||||
Yidu Tech, Inc.* (a) (b) |
10,600 | 34,066 | ||||||
140,213 |
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) | ||||||||
Hotels, Restaurants & Leisure – 0.8% | ||||||||
Alsea SAB de CV* |
27,500 | $ | 57,857 | |||||
Ananti, Inc.* |
4,503 | 50,866 | ||||||
Asset World Corp. PCL, NVDR* |
312,700 | 42,972 | ||||||
Berjaya Sports Toto Bhd. |
409,013 | 205,445 | ||||||
Bloomberry Resorts Corp.* |
346,200 | 46,700 | ||||||
Central Plaza Hotel PCL* |
1,600 | 1,736 | ||||||
Central Plaza Hotel PCL, NVDR* |
8,600 | 9,330 | ||||||
DoubleUGames Co. Ltd. |
5,327 | 292,665 | ||||||
Genting Bhd. |
77,000 | 96,320 | ||||||
Genting Malaysia Bhd. |
61,100 | 46,773 | ||||||
Grand Korea Leisure Co. Ltd.* |
1,040 | 14,551 | ||||||
Haidilao
International Holding |
13,164 | 36,891 | ||||||
Hana Tour Service, Inc.* |
403 | 28,866 | ||||||
Huazhu Group Ltd., ADR* |
2,979 | 138,106 | ||||||
Indian Hotels Co. Ltd. (The) |
45,170 | 118,623 | ||||||
Jiumaojiu
International Holdings |
6,000 | 15,040 | ||||||
Jollibee Foods Corp. |
10,380 | 48,430 | ||||||
Jubilant Foodworks Ltd. |
1,760 | 86,713 | ||||||
Kangwon Land, Inc.* |
2,365 | 56,264 | ||||||
Lotte Tour Development Co. Ltd.* |
1,961 | 33,899 | ||||||
Magnum Bhd. |
19,594 | 10,220 | ||||||
Minor International PCL, NVDR* |
66,000 | 65,140 | ||||||
MK Restaurants Group PCL, NVDR |
10,400 | 17,160 | ||||||
OPAP SA |
4,386 | 68,268 | ||||||
Paradise Co. Ltd.* |
421 | 6,269 | ||||||
Seera Group Holding* |
11,330 | 70,078 | ||||||
Shenzhen Overseas Chinese Town Co. Ltd., Class A |
22,200 | 21,717 | ||||||
Tongcheng-Elong Holdings Ltd.* (a) (b) |
18,800 | 42,100 | ||||||
Travellers International Hotel Group, Inc.* ‡ (c) |
209,900 | 11,284 | ||||||
Trip.com Group Ltd., ADR* |
9,264 | 264,580 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Xiabuxiabu Catering Management China Holdings Co. Ltd.* (a) |
26,500 | $ | 19,417 | |||||
Yum China Holdings, Inc. |
8,855 | 505,443 | ||||||
2,529,723 | ||||||||
Household Durables – 0.8% | ||||||||
Amber Enterprises India Ltd.* |
1,320 | 58,273 | ||||||
AmTRAN Technology Co. Ltd.* (c) |
53,000 | 33,734 | ||||||
Arcelik A/S |
4,982 | 17,451 | ||||||
Bajaj Electricals Ltd.* |
2,173 | 32,087 | ||||||
Coway Co. Ltd. |
2,036 | 138,341 | ||||||
Crompton Greaves Consumer Electricals Ltd. |
15,345 | 95,413 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes |
142,400 | 355,937 | ||||||
Dixon Technologies India Ltd.(a) |
705 | 47,014 | ||||||
Ecovacs Robotics Co. Ltd., Class A |
1,500 | 40,200 | ||||||
Ez Tec Empreendimentos e Participacoes SA |
5,300 | 17,159 | ||||||
Haier Smart Home Co. Ltd., Class A |
10,600 | 45,055 | ||||||
Haier Smart Home Co. Ltd., Class H |
44,000 | 164,596 | ||||||
Hang Zhou Great Star Industrial Co. Ltd., Class A* |
5,000 | 25,026 | ||||||
Hangzhou Robam Appliances Co. Ltd., Class A |
5,300 | 25,948 | ||||||
Hanssem Co. Ltd. |
303 | 26,318 | ||||||
Hisense Home Appliances Group Co. Ltd., Class A |
10,000 | 18,252 | ||||||
Kinpo Electronics |
105,000 | 49,086 | ||||||
LG Electronics, Inc. |
3,797 | 391,544 | ||||||
LG Electronics, Inc. (Preference) |
584 | 32,035 | ||||||
Lock&Lock Co. Ltd.* |
728 | 6,541 | ||||||
Midea Group Co. Ltd., Class A |
11,000 | 118,211 | ||||||
MRV Engenharia e Participacoes SA |
138,500 | 249,383 |
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) | ||||||||
Household Durables – (continued) | ||||||||
NavInfo Co. Ltd., Class A* |
4,700 | $ | 8,593 | |||||
Nien Made Enterprise Co. Ltd. |
2,000 | 27,474 | ||||||
PIK Group PJSC |
4,646 | 77,022 | ||||||
Sampo Corp. |
165,000 | 175,630 | ||||||
TCL Electronics Holdings Ltd.* |
440,000 | 239,258 | ||||||
TCL Technology Group Corp., Class A |
28,200 | 26,705 | ||||||
Vestel Elektronik Sanayi ve Ticaret A/S |
38,675 | 101,925 | ||||||
Whirlpool of India Ltd. |
674 | 19,913 | ||||||
2,664,124 | ||||||||
Household Products – 0.2% | ||||||||
Blue
Moon Group Holdings |
26,500 | 23,846 | ||||||
C&S Paper Co. Ltd., Class A |
5,000 | 13,314 | ||||||
Cheerwin Group Ltd.(a) |
26,500 | 13,047 | ||||||
Hindustan Unilever Ltd. |
18,040 | 576,545 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A(b) |
27,000 | 42,808 | ||||||
Unilever Indonesia Tbk. PT |
75,200 | 23,461 | ||||||
Vinda International Holdings Ltd.(b) |
3,000 | 8,272 | ||||||
701,293 | ||||||||
Independent Power and Renewable
Electricity Producers – 1.5% |
||||||||
Aboitiz Power Corp. |
34,200 | 21,812 | ||||||
AC Energy Corp. |
196,100 | 47,693 | ||||||
Adani Green Energy Ltd.* |
7,920 | 121,934 | ||||||
Adani Power Ltd.* |
16,869 | 22,640 | ||||||
AES Andes SA |
88,486 | 9,118 | ||||||
AES Brasil Energia SA |
5,300 | 10,248 | ||||||
Aksa Enerji Uretim A/S* |
142,120 | 111,152 | ||||||
B Grimm Power PCL, NVDR |
15,300 | 19,596 | ||||||
Banpu Power PCL, NVDR |
11,700 | 6,170 | ||||||
Canvest Environmental Protection Group Co. Ltd.(a) |
275,000 | 158,021 | ||||||
CGN Power Co. Ltd., Class H(a) |
440,000 | 118,781 |
Investments | Shares | Value | ||||||
Independent Power and Renewable
Electricity Producers – (continued) |
||||||||
China Longyuan Power Group Corp. Ltd., Class H |
110,000 | $ | 257,075 | |||||
China National Nuclear Power Co. Ltd., Class A |
42,300 | 45,279 | ||||||
China Power International Development Ltd.(b) |
2,145,000 | 1,078,146 | ||||||
China Resources Power Holdings Co. Ltd. |
54,000 | 139,529 | ||||||
China Yangtze Power Co. Ltd., Class A |
38,500 | 127,846 | ||||||
Cia Energetica de Sao Paulo (Preference), Class B |
10,600 | 47,951 | ||||||
Colbun SA |
238,159 | 16,468 | ||||||
Datang International Power Generation Co. Ltd., Class H |
212,000 | 38,426 | ||||||
Electricity Generating PCL, NVDR |
4,700 | 25,283 | ||||||
Energy Absolute PCL, NVDR |
38,500 | 75,996 | ||||||
Eneva SA* |
22,000 | 56,200 | ||||||
Engie Brasil Energia SA |
10,000 | 69,026 | ||||||
First Gen Corp. |
29,500 | 17,615 | ||||||
Global Power Synergy PCL, NVDR |
21,200 | 49,833 | ||||||
Guangxi Guiguan Electric Power Co. Ltd., Class A |
15,000 | 13,572 | ||||||
Gulf Energy Development PCL, NVDR |
110,000 | 143,374 | ||||||
Huadian Power International Corp. Ltd., Class A |
26,500 | 18,262 | ||||||
Huaneng Lancang River Hydropower, Inc., Class A |
23,500 | 24,935 | ||||||
Huaneng Power International, Inc., Class A |
24,300 | 29,277 | ||||||
Huaneng Power International, Inc., Class H(b) |
112,000 | 58,023 | ||||||
Hub Power Co. Ltd. (The) |
504,515 | 223,902 | ||||||
Hubei Energy Group Co. Ltd., Class A |
23,500 | 18,214 | ||||||
JSW Energy Ltd. |
8,692 | 40,470 | ||||||
Malakoff Corp. Bhd. |
951,500 | 186,118 | ||||||
Mega First Corp. Bhd. |
379,500 | 329,920 | ||||||
NHPC Ltd. |
79,420 | 32,561 |
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) | ||||||||
Independent Power and Renewable
Electricity Producers – (continued) |
||||||||
NTPC Ltd. |
161,004 | $ | 285,214 | |||||
OGK-2 PJSC |
16,271,280 | 160,509 | ||||||
Omega Geracao SA* |
5,300 | 30,773 | ||||||
Ratch Group PCL, NVDR |
9,300 | 12,752 | ||||||
SDIC Power Holdings Co. Ltd., Class A |
23,500 | 38,743 | ||||||
Shanghai Electric Power Co. Ltd., Class A |
14,100 | 24,369 | ||||||
Shenergy Co. Ltd., Class A |
14,100 | 13,639 | ||||||
Shenzhen Energy Group Co. Ltd., Class A |
10,600 | 13,450 | ||||||
Sichuan Chuantou Energy Co. Ltd., Class A |
9,400 | 19,228 | ||||||
SPCG PCL, NVDR |
254,700 | 136,628 | ||||||
Super Energy Corp. PCL, NVDR |
1,192,500 | 34,859 | ||||||
Taiwan Cogeneration Corp. |
3,000 | 4,126 | ||||||
Terna Energy SA |
933 | 12,633 | ||||||
TPI Polene Power PCL, NVDR |
1,481,800 | 189,342 | ||||||
Unipro PJSC |
5,337,000 | 205,173 | ||||||
4,991,904 | ||||||||
Industrial Conglomerates – 1.8% | ||||||||
3M India Ltd.* |
69 | 23,406 | ||||||
Aamal Co. |
21,949 | 6,577 | ||||||
Aboitiz Equity Ventures, Inc. |
84,290 | 80,929 | ||||||
AG Anadolu Grubu Holding A/S |
69,300 | 197,915 | ||||||
Alarko Holding A/S |
81,180 | 79,448 | ||||||
Alfa SAB de CV, Class A |
88,000 | 63,870 | ||||||
Alliance Global Group, Inc. |
157,700 | 32,535 | ||||||
AntarChile SA |
1,696 | 14,250 | ||||||
Ayala Corp. |
5,500 | 94,158 | ||||||
Bidvest Group Ltd. (The) |
12,155 | 153,049 | ||||||
China Baoan Group Co. Ltd., Class A |
5,500 | 17,972 | ||||||
CJ Corp. |
564 | 46,238 | ||||||
DMCI Holdings, Inc. |
1,985,500 | 313,127 | ||||||
Dogan Sirketler Grubu Holding A/S |
571,725 | 158,166 | ||||||
Doosan Co. Ltd. |
6,404 | 564,471 |
Investments | Shares | Value | ||||||
Industrial Conglomerates – (continued) | ||||||||
Dubai Investments PJSC |
1,091,896 | $ | 505,349 | |||||
Enka Insaat ve Sanayi A/S |
50,808 | 58,126 | ||||||
Far Eastern New Century Corp. |
133,000 | 139,177 | ||||||
Fosun International Ltd. |
82,500 | 97,039 | ||||||
Godrej Industries Ltd.* |
3,377 | 26,179 | ||||||
Grupo Carso SAB de CV, Series A1(b) |
11,100 | 37,418 | ||||||
GT Capital Holdings, Inc. |
2,280 | 25,554 | ||||||
Hanwha Corp. |
1,692 | 48,506 | ||||||
Hanwha Corp. (3rd Preference) |
1,425 | 19,999 | ||||||
HAP Seng Consolidated Bhd. |
11,900 | 22,530 | ||||||
Hong Leong Industries Bhd. |
34,200 | 75,321 | ||||||
Hyosung Corp. |
201 | 17,717 | ||||||
Industries Qatar QSC |
37,455 | 163,152 | ||||||
JG Summit Holdings, Inc. |
66,111 | 78,950 | ||||||
KAP Industrial Holdings Ltd. |
1,316,700 | 408,870 | ||||||
KOC Holding A/S |
31,460 | 77,152 | ||||||
LG Corp. |
4,260 | 332,474 | ||||||
Lotte Corp. |
1,392 | 38,953 | ||||||
LT Group, Inc. |
131,600 | 26,263 | ||||||
Mytilineos SA |
4,982 | 90,921 | ||||||
National Industries Group Holding SAK* |
715,330 | 650,192 | ||||||
PSG Group Ltd.(b) |
7,795 | 39,221 | ||||||
Quinenco SA |
12,939 | 24,401 | ||||||
Samsung C&T Corp. |
1,622 | 158,237 | ||||||
San Miguel Corp. |
13,510 | 31,329 | ||||||
Shanghai Industrial Holdings Ltd.(b) |
207,000 | 309,207 | ||||||
Siemens Ltd. |
1,416 | 41,349 | ||||||
Sime Darby Bhd. |
54,600 | 29,930 | ||||||
SK, Inc. |
1,198 | 249,124 | ||||||
SM Investments Corp. |
8,490 | 162,524 | ||||||
Sunway Bhd. |
50,749 | 21,814 | ||||||
Thoresen Thai Agencies PCL, NVDR |
53,000 | 18,528 | ||||||
Turkiye Sise ve Cam Fabrikalari A/S |
49,404 | 44,496 | ||||||
5,916,113 |
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) | ||||||||
Insurance – 2.7% | ||||||||
Allianz Malaysia Bhd. |
27,500 | $ | 87,527 | |||||
Bangkok Insurance PCL, NVDR |
11,000 | 92,489 | ||||||
Bangkok Life Assurance PCL, NVDR |
35,000 | 31,380 | ||||||
BB Seguridade Participacoes SA |
16,500 | 64,659 | ||||||
Bupa Arabia for Cooperative Insurance Co. |
262 | 10,100 | ||||||
Cathay Financial Holding Co. Ltd. |
275,000 | 574,555 | ||||||
China Development Financial Holding Corp. |
550,000 | 280,849 | ||||||
China Life Insurance Co. Ltd. |
84,697 | 88,326 | ||||||
China Life Insurance Co. Ltd., Class H |
135,000 | 235,324 | ||||||
China Pacific Insurance Group Co. Ltd., Class A |
21,000 | 89,916 | ||||||
China Pacific Insurance Group Co. Ltd., Class H |
99,000 | 305,436 | ||||||
China Taiping Insurance Holdings Co. Ltd. |
31,800 | 48,646 | ||||||
Co. for Cooperative Insurance (The) |
974 | 22,332 | ||||||
DB Insurance Co. Ltd. |
2,014 | 102,031 | ||||||
Discovery Ltd.* |
7,242 | 66,669 | ||||||
Fubon Financial Holding Co. Ltd. |
284,453 | 752,854 | ||||||
General Insurance Corp. of India* (a) |
8,949 | 15,931 | ||||||
Hanwha General Insurance Co. Ltd.* |
29,920 | 115,604 | ||||||
Hanwha Life Insurance Co. Ltd. |
12,318 | 36,631 | ||||||
HDFC Life Insurance Co. Ltd.(a) |
17,875 | 162,431 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. |
2,970 | 66,717 | ||||||
ICICI Lombard General Insurance Co. Ltd.(a) |
4,049 | 80,111 | ||||||
ICICI Prudential Life Insurance Co. Ltd.(a) |
6,030 | 49,798 | ||||||
IRB Brasil Resseguros S/A* |
31,951 | 26,583 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Korean Reinsurance Co. |
39,738 | $ | 328,500 | |||||
Liberty Holdings Ltd.* |
68,992 | 409,549 | ||||||
Max Financial Services Ltd.* |
2,721 | 35,378 | ||||||
Mercuries & Associates Holding Ltd. |
260,500 | 216,861 | ||||||
Mercuries Life Insurance Co. Ltd.* |
111,700 | 36,874 | ||||||
Meritz Fire & Marine Insurance Co. Ltd. |
1,643 | 38,947 | ||||||
Mirae Asset Life Insurance Co. Ltd. |
30,610 | 111,983 | ||||||
Momentum Metropolitan Holdings |
24,539 | 31,739 | ||||||
New China Life Insurance Co. Ltd., Class A |
4,700 | 28,769 | ||||||
New China Life Insurance Co. Ltd., Class H |
31,100 | 90,153 | ||||||
Old Mutual Ltd. |
172,110 | 176,526 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H |
249,000 | 77,782 | ||||||
PICC Property & Casualty Co. Ltd., Class H |
220,000 | 205,886 | ||||||
Ping An Insurance Group Co. of China Ltd., Class A |
27,600 | 213,794 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H |
201,500 | 1,447,972 | ||||||
Porto Seguro SA |
9,600 | 39,749 | ||||||
Qatar Insurance Co. SAQ* |
94,985 | 63,915 | ||||||
Qualitas Controladora SAB de CV(b) |
104,500 | 485,137 | ||||||
Rand Merchant Investment Holdings Ltd.(b) |
33,144 | 88,987 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. |
1,115 | 220,414 | ||||||
Samsung Life Insurance Co. Ltd. |
3,371 | 194,145 | ||||||
Sanlam Ltd. |
63,153 | 260,714 | ||||||
Santam Ltd. |
723 | 12,082 | ||||||
SBI Life Insurance Co. Ltd.(a) |
8,278 | 126,639 | ||||||
Shin Kong Financial Holding Co. Ltd. |
550,000 | 194,023 | ||||||
Shinkong Insurance Co. Ltd. |
110,000 | 182,354 | ||||||
Sul America SA |
10,377 | 47,808 |
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) | ||||||||
Insurance – (continued) | ||||||||
Syarikat Takaful Malaysia Keluarga BHD |
152,260 | $ | 145,973 | |||||
Turkiye Sigorta A/S |
118,030 | 60,027 | ||||||
ZhongAn Online P&C Insurance Co. Ltd., Class H* (a) (b) |
16,500 | 60,557 | ||||||
9,040,136 | ||||||||
Interactive Media & Services – 3.6% | ||||||||
AfreecaTV Co. Ltd. |
495 | 81,755 | ||||||
Autohome, Inc., ADR(b) |
954 | 37,540 | ||||||
Baidu, Inc., ADR* |
5,390 | 874,474 | ||||||
Hello Group, Inc., ADR |
85,812 | 1,068,359 | ||||||
Hong Seng Consolidated Bhd.* |
90,100 | 72,889 | ||||||
Info Edge India Ltd. |
1,474 | 119,590 | ||||||
JOYY, Inc., ADR(b) |
1,210 | 60,972 | ||||||
Kakao Corp. |
6,275 | 673,923 | ||||||
Kuaishou Technology* (a) |
27,500 | 365,887 | ||||||
NAVER Corp. |
2,970 | 1,034,436 | ||||||
Tencent Holdings Ltd. |
121,000 | 7,481,762 | ||||||
Tongdao Liepin Group* (a) (b) |
10,000 | 14,449 | ||||||
Weibo Corp., ADR* |
1,467 | 65,986 | ||||||
Zhihu, Inc., ADR* (b) |
1,113 | 9,193 | ||||||
11,961,215 | ||||||||
Internet & Direct Marketing Retail – 3.8% | ||||||||
Alibaba Group Holding Ltd.* |
297,000 | 6,223,253 | ||||||
Americanas SA* |
9,192 | 48,430 | ||||||
Baozun, Inc., Class A* |
2,500 | 14,462 | ||||||
CJ ENM Co. Ltd. |
140 | 21,134 | ||||||
HengTen Networks Group Ltd.* (b) |
30,799 | 10,571 | ||||||
Hyundai Home Shopping Network Corp. |
3,081 | 184,826 | ||||||
JD Health International, Inc.* (a) (b) |
22,000 | 194,857 | ||||||
JD.com, Inc., Class A* |
36,350 | 1,450,439 | ||||||
Lojas Americanas SA* |
5,349 | 4,678 | ||||||
Lojas Americanas SA (Preference)* |
16,274 | 13,944 | ||||||
Maoyan Entertainment* (a) (b) |
44,000 | 53,282 |
Investments | Shares | Value | ||||||
Internet & Direct Marketing Retail – (continued) | ||||||||
Meituan, Class B* (a) |
82,500 | $ | 2,859,218 | |||||
momo.com, Inc. |
1,300 | 83,679 | ||||||
Naspers Ltd., Class N |
4,345 | 740,405 | ||||||
Pinduoduo, Inc., ADR* |
8,855 | 787,387 | ||||||
Vipshop Holdings Ltd., ADR* |
8,085 | 90,229 | ||||||
12,780,794 | ||||||||
IT Services – 1.7% | ||||||||
China TransInfo Technology Co. Ltd., Class A |
4,700 | 9,827 | ||||||
Chinasoft International Ltd.* |
46,000 | 76,991 | ||||||
Chindata Group Holdings Ltd., ADR* (b) |
5,665 | 56,423 | ||||||
Cielo SA |
602,300 | 233,996 | ||||||
Coforge Ltd. |
1,078 | 70,116 | ||||||
Computer Age Management Services Ltd. |
1,007 | 40,507 | ||||||
DHC Software Co. Ltd., Class A |
9,400 | 10,194 | ||||||
Digital China Holdings Ltd.(b) |
495,000 | 267,256 | ||||||
Fawry for Banking & Payment Technology Services SAE* |
18,921 | 18,114 | ||||||
Firstsource Solutions Ltd. |
22,385 | 59,086 | ||||||
GDS Holdings Ltd., ADR* (b) |
2,365 | 140,481 | ||||||
Happiest Minds Technologies Ltd. |
2,491 | 42,394 | ||||||
HCL Technologies Ltd. |
22,000 | 336,032 | ||||||
Hyundai Autoever Corp. |
212 | 21,136 | ||||||
Infosys Ltd. |
74,965 | 1,669,615 | ||||||
Kginicis Co. Ltd. |
8,610 | 137,415 | ||||||
Kingsoft Cloud Holdings Ltd., ADR* (b) |
982 | 22,557 | ||||||
Larsen & Toubro Infotech Ltd.(a) |
721 | 64,341 | ||||||
Locaweb Servicos de Internet SA* (a) |
4,800 | 15,583 | ||||||
Lotte Data Communication Co. |
3,465 | 113,419 | ||||||
Mindtree Ltd. |
720 | 43,195 | ||||||
Mphasis Ltd. |
1,925 | 83,184 | ||||||
My EG Services Bhd. |
86,314 | 21,678 | ||||||
Persistent Systems Ltd. |
2,695 | 141,215 | ||||||
Posco ICT Co. Ltd. |
2,080 | 11,908 | ||||||
Samsung SDS Co. Ltd. |
770 | 100,817 |
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) | ||||||||
IT Services – (continued) | ||||||||
Systex Corp. |
110,000 | $ | 341,371 | |||||
Tata Consultancy Services Ltd. |
20,790 | 943,350 | ||||||
Tech Mahindra Ltd. |
11,000 | 217,095 | ||||||
TravelSky Technology Ltd., Class H |
41,000 | 76,740 | ||||||
Vnet Group, Inc., ADR* (b) |
1,563 | 24,508 | ||||||
Wipro Ltd. |
28,641 | 247,373 | ||||||
Yeahka Ltd.* (b) |
2,400 | 7,327 | ||||||
5,665,244 | ||||||||
Leisure Products – 0.1% | ||||||||
Dyaco International, Inc. |
55,000 | 128,162 | ||||||
Fusheng Precision Co. Ltd. |
7,000 | 47,450 | ||||||
Giant Manufacturing Co. Ltd. |
5,000 | 57,986 | ||||||
HLB, Inc.* |
2,035 | 73,316 | ||||||
Merida Industry Co. Ltd. |
5,350 | 55,600 | ||||||
362,514 | ||||||||
Life Sciences Tools & Services – 0.6% | ||||||||
Cellivery Therapeutics, Inc.* |
188 | 8,076 | ||||||
Divi’s Laboratories Ltd. |
2,622 | 180,335 | ||||||
Genscript Biotech Corp.* |
20,000 | 88,828 | ||||||
Hangzhou Tigermed Consulting Co. Ltd., Class H(a) |
6,500 | 126,757 | ||||||
LegoChem Biosciences, Inc.* |
270 | 10,386 | ||||||
Pharmaron Beijing Co. Ltd., Class H(a) |
5,700 | 124,199 | ||||||
Samsung Biologics Co. Ltd.* (a) |
311 | 231,810 | ||||||
ST Pharm Co. Ltd.* |
344 | 25,758 | ||||||
Viva Biotech Holdings(a) (b) |
50,000 | 37,858 | ||||||
WuXi AppTec Co. Ltd., Class A |
5,260 | 113,439 | ||||||
WuXi AppTec Co. Ltd., Class H(a) (b) |
7,418 | 158,582 | ||||||
Wuxi Biologics Cayman, Inc.* (a) |
65,500 | 996,934 | ||||||
2,102,962 | ||||||||
Machinery – 1.1% | ||||||||
AIA Engineering Ltd. |
972 | 24,892 | ||||||
Airtac International Group |
2,913 | 86,944 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Ashok Leyland Ltd. |
34,234 | $ | 65,102 | |||||
China CSSC Holdings Ltd., Class A |
10,600 | 37,353 | ||||||
China International Marine Containers Group Co. Ltd., Class H(b) |
15,900 | 31,436 | ||||||
CIMC Enric Holdings Ltd.(b) |
312,000 | 403,484 | ||||||
CNHTC Jinan Truck Co. Ltd., Class A |
1,260 | 2,607 | ||||||
CNPC Capital Co. Ltd., Class A |
29,200 | 23,134 | ||||||
Creative & Innovative System* |
2,703 | 42,446 | ||||||
CSBC Corp. Taiwan* |
53,000 | 41,548 | ||||||
Cummins India Ltd. |
2,280 | 27,272 | ||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd.* |
705 | 15,565 | ||||||
Doosan Bobcat, Inc.* |
1,272 | 41,419 | ||||||
Dufu Technology Corp. Bhd. |
37,100 | 39,779 | ||||||
Escorts Ltd. |
3,135 | 65,705 | ||||||
Estun Automation Co. Ltd., Class A |
5,000 | 20,666 | ||||||
Haitian International Holdings Ltd. |
16,000 | 46,895 | ||||||
Hangzhou Oxygen Plant Group Co. Ltd. |
5,000 | 20,237 | ||||||
Hanjin Heavy Industries & Construction Co. Ltd.* |
1,060 | 8,672 | ||||||
Hiwin Technologies Corp. |
5,372 | 59,692 | ||||||
Hyundai Construction Equipment Co. Ltd.* |
636 | 21,907 | ||||||
Hyundai Doosan Infracore Co. Ltd.* |
1,370 | 12,310 | ||||||
Hyundai Elevator Co. Ltd. |
208 | 8,588 | ||||||
Hyundai Heavy Industries Holdings Co. Ltd. |
1,430 | 77,340 | ||||||
Hyundai Mipo Dockyard Co. Ltd.* |
602 | 38,998 | ||||||
Hyundai Rotem Co. Ltd.* |
1,766 | 34,004 | ||||||
Infore Environment Technology Group Co. Ltd., Class A |
9,400 | 9,195 |
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) | ||||||||
Machinery – (continued) | ||||||||
Korea Shipbuilding & Offshore Engineering Co. Ltd.* |
990 | $ | 87,262 | |||||
LK Technology Holdings Ltd. |
22,000 | 55,374 | ||||||
Lonking Holdings Ltd. |
1,045,000 | 306,284 | ||||||
Pentamaster Corp. Bhd. |
21,200 | 27,390 | ||||||
People & Technology, Inc. |
10,120 | 302,245 | ||||||
Rechi Precision Co. Ltd. |
55,000 | 36,886 | ||||||
Rexon Industrial Corp. Ltd. |
74,000 | 178,291 | ||||||
Riyue Heavy Industry Co. Ltd., Class A |
5,000 | 30,402 | ||||||
SAM KANG M&T Co. Ltd.* |
1,219 | 21,646 | ||||||
Samsung Heavy Industries Co. Ltd.* |
15,922 | 86,930 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd. |
12,000 | 13,760 | ||||||
Sany Heavy Industry Co. Ltd., Class A |
16,500 | 59,200 | ||||||
Schaeffler India Ltd. |
220 | 21,746 | ||||||
SFA Engineering Corp. |
1,089 | 32,804 | ||||||
Shanghai Mechanical and Electrical Industry Co. Ltd., Class B |
21,200 | 27,242 | ||||||
Shin Zu Shing Co. Ltd. |
83,000 | 297,575 | ||||||
Sinotruk Hong Kong Ltd. |
30,500 | 42,109 | ||||||
SKF India Ltd. |
624 | 27,674 | ||||||
Sunonwealth Electric Machine Industry Co. Ltd. |
110,000 | 152,292 | ||||||
Tianshan Aluminum Group Co. Ltd., Class A |
10,600 | 13,864 | ||||||
UWC Bhd. |
10,600 | 15,717 | ||||||
Weichai Power Co. Ltd., Class A |
17,300 | 40,822 | ||||||
Weichai Power Co. Ltd., Class H |
74,000 | 132,988 | ||||||
XCMG Construction Machinery Co. Ltd., Class A |
18,800 | 17,950 | ||||||
Yangzijiang Shipbuilding Holdings Ltd. |
104,500 | 110,041 | ||||||
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A |
9,400 | 34,843 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A |
9,400 | $ | 14,865 | |||||
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class H(b) |
10,000 | 10,515 | ||||||
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A |
17,700 | 20,164 | ||||||
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H |
62,200 | 44,937 | ||||||
3,571,008 | ||||||||
Marine – 0.5% | ||||||||
Cia Sud Americana de Vapores SA |
636,473 | 41,461 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class H* (b) |
116,450 | 180,834 | ||||||
Evergreen Marine Corp. Taiwan Ltd. |
91,558 | 327,598 | ||||||
HMM Co. Ltd.* |
10,120 | 230,797 | ||||||
MISC Bhd. |
60,500 | 103,293 | ||||||
Orient Overseas International Ltd. |
6,500 | 120,073 | ||||||
Pan Ocean Co. Ltd. |
5,613 | 28,916 | ||||||
Precious Shipping PCL, NVDR |
47,700 | 26,019 | ||||||
Qatar Navigation QSC |
20,237 | 42,180 | ||||||
Regional Container Lines PCL, NVDR |
132,000 | 174,038 | ||||||
Transcoal Pacific Tbk. PT* |
32,900 | 20,087 | ||||||
U-Ming Marine Transport Corp. |
2,000 | 3,783 | ||||||
Wan Hai Lines Ltd. |
42,900 | 246,831 | ||||||
Wisdom Marine Lines Co. Ltd. |
11,898 | 27,939 | ||||||
Yang Ming Marine Transport Corp.* |
58,000 | 201,269 | ||||||
1,775,118 | ||||||||
Media – 0.4% | ||||||||
Affle India Ltd.* |
2,120 | 29,727 | ||||||
Astro Malaysia Holdings Bhd. |
139,200 | 33,447 | ||||||
Cheil Worldwide, Inc. |
1,074 | 21,920 | ||||||
China Literature Ltd.* (a) (b) |
6,200 | 43,158 |
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) | ||||||||
Media – (continued) | ||||||||
Elang Mahkota Teknologi Tbk. PT* |
376,300 | $ | 51,129 | |||||
Focus Media Information Technology Co. Ltd., Class A |
23,500 | 27,028 | ||||||
Grupo Televisa SAB, Series CPO |
49,500 | 100,720 | ||||||
iClick Interactive Asia Group Ltd., ADR* (b) |
5,088 | 35,056 | ||||||
Innocean Worldwide, Inc. |
4,968 | 249,984 | ||||||
KMH Co. Ltd.* |
12,100 | 93,089 | ||||||
Leo Group Co. Ltd., Class A |
18,800 | 6,698 | ||||||
Media Nusantara Citra Tbk. PT |
3,624,500 | 230,249 | ||||||
Megacable Holdings SAB de CV |
16,500 | 48,722 | ||||||
MultiChoice Group |
7,645 | 61,095 | ||||||
NanJi E-Commerce Co. Ltd., Class A |
4,700 | 5,266 | ||||||
Plan B Media PCL, NVDR |
72,800 | 14,041 | ||||||
Saudi Research & Media Group* |
1,430 | 64,430 | ||||||
Sun TV Network Ltd. |
1,889 | 14,152 | ||||||
Surya Citra Media Tbk. PT* |
427,000 | 12,659 | ||||||
Zee Entertainment Enterprises Ltd. |
19,580 | 78,693 | ||||||
1,221,263 | ||||||||
Metals & Mining – 4.2% | ||||||||
African Rainbow Minerals Ltd. |
4,290 | 57,444 | ||||||
Alrosa PJSC |
85,800 | 151,042 | ||||||
Aluminum Corp. of China Ltd., Class A* |
26,500 | 25,426 | ||||||
Aluminum Corp. of China Ltd., Class H* (b) |
60,000 | 35,866 | ||||||
Aneka Tambang Tbk. |
201,400 | 33,265 | ||||||
Angang Steel Co. Ltd., Class H |
38,000 | 20,468 | ||||||
Anglo American Platinum Ltd. |
2,090 | 212,217 | ||||||
AngloGold Ashanti Ltd. |
15,125 | 283,872 | ||||||
APL Apollo Tubes Ltd.* |
9,974 | 106,571 | ||||||
Baoshan Iron & Steel Co. Ltd., Class A |
66,000 | 73,536 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Beijing Shougang Co. Ltd., Class A* |
10,600 | $ | 9,541 | |||||
Bradespar SA (Preference) |
6,186 | 53,399 | ||||||
CAP SA |
2,756 | 27,352 | ||||||
Century Iron & Steel Industrial Co. Ltd. |
6,000 | 24,381 | ||||||
Chengtun Mining Group Co. Ltd., Class A |
10,600 | 16,962 | ||||||
Chifeng Jilong Gold Mining Co. Ltd., Class A* |
10,000 | 25,518 | ||||||
China Gold International Resources Corp. Ltd. |
121,000 | 361,644 | ||||||
China Hongqiao Group Ltd.(b) |
82,500 | 91,737 | ||||||
China Metal Products |
110,000 | 126,580 | ||||||
China Metal Recycling Holdings Ltd.* ‡ (c) |
51,000 | — | ||||||
China Molybdenum Co. Ltd., Class A |
22,500 | 21,061 | ||||||
China Molybdenum Co. Ltd., Class H |
57,000 | 35,391 | ||||||
China Nonferrous Mining Corp. Ltd. |
605,000 | 259,762 | ||||||
China Northern Rare Earth Group High-Tech Co. Ltd., Class A |
5,300 | 41,908 | ||||||
China Steel Corp. |
275,000 | 332,272 | ||||||
China Zhongwang Holdings Ltd.* ‡ (b) (c) |
699,600 | 161,297 | ||||||
Chung Hung Steel Corp. |
23,000 | 29,031 | ||||||
Cia Siderurgica Nacional SA |
22,000 | 88,905 | ||||||
Citic Pacific Special Steel Group Co. Ltd., Class A |
10,600 | 31,555 | ||||||
Dongkuk Steel Mill Co. Ltd. |
2,067 | 30,159 | ||||||
DRDGOLD Ltd. |
20,448 | 18,457 | ||||||
Eregli Demir ve Celik Fabrikalari TAS |
45,320 | 92,807 | ||||||
Feng Hsin Steel Co. Ltd. |
16,000 | 45,051 | ||||||
Ganfeng Lithium Co. Ltd., Class A |
2,600 | 68,014 | ||||||
Ganfeng Lithium Co. Ltd., Class H(a) |
5,200 | 97,529 | ||||||
GEM Co. Ltd., Class A |
5,300 | 9,028 | ||||||
Gerdau SA (Preference) |
35,700 | 170,362 |
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) | ||||||||
Metals & Mining – (continued) | ||||||||
Gold Fields Ltd. |
32,534 | $ | 306,740 | |||||
Grupo Mexico SAB de CV, Series B |
110,000 | 483,629 | ||||||
Harmony Gold Mining Co. Ltd.(b) |
18,648 | 68,077 | ||||||
Henan Shenhuo Coal & Power Co. Ltd., Class A |
5,500 | 8,156 | ||||||
Hesteel Co. Ltd., Class A |
37,600 | 14,454 | ||||||
Hindalco Industries Ltd. |
51,370 | 315,432 | ||||||
Hindustan Copper Ltd. |
16,483 | 27,944 | ||||||
Hunan Valin Steel Co. Ltd., Class A |
23,500 | 19,610 | ||||||
Hyundai Steel Co. |
1,128 | 42,908 | ||||||
Impala Platinum Holdings Ltd. |
27,805 | 362,178 | ||||||
Industrias Penoles SAB de CV* (b) |
4,525 | 58,149 | ||||||
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A* |
70,500 | 30,957 | ||||||
Inner Mongolia Eerduosi Resources Co. Ltd., Class A |
5,300 | 24,523 | ||||||
Inner Mongolia Eerduosi Resources Co. Ltd., Class B |
5,300 | 10,160 | ||||||
Jiangsu Shagang Co. Ltd., Class A |
9,400 | 9,122 | ||||||
Jiangxi Copper Co. Ltd., Class A |
9,400 | 34,211 | ||||||
Jiangxi Copper Co. Ltd., Class H |
18,000 | 31,515 | ||||||
Jinchuan Group International Resources Co. Ltd.(b) |
144,000 | 23,139 | ||||||
Jindal Steel & Power Ltd.* |
14,485 | 80,722 | ||||||
JSW Steel Ltd. |
20,735 | 185,291 | ||||||
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class A* |
122,870 | 82,551 | ||||||
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class D* |
408,892 | 317,243 | ||||||
KISCO Corp. |
9,460 | 72,779 | ||||||
Korea Zinc Co. Ltd. |
440 | 202,199 | ||||||
Koza Altin Isletmeleri A/S* |
2,182 | 24,350 | ||||||
Koza Anadolu Metal Madencilik Isletmeleri A/S* |
96,305 | 168,769 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Kumba Iron Ore Ltd. |
2,200 | $ | 67,187 | |||||
Maanshan Iron & Steel Co. Ltd., Class A |
21,200 | 14,047 | ||||||
Maanshan Iron & Steel Co. Ltd., Class H |
110,000 | 46,947 | ||||||
Magnitogorsk Iron & Steel Works PJSC |
45,174 | 42,127 | ||||||
Merdeka Copper Gold Tbk. PT* |
338,500 | 75,501 | ||||||
Metalurgica Gerdau SA (Preference) |
22,200 | 49,268 | ||||||
MMC Norilsk Nickel PJSC |
2,090 | 651,670 | ||||||
Nickel Asia Corp. |
233,200 | 25,351 | ||||||
NMDC Ltd. |
36,355 | 69,500 | ||||||
Northam Platinum Holdings Ltd.* |
12,943 | 194,784 | ||||||
Novolipetsk Steel PJSC |
51,150 | 161,218 | ||||||
Polyus PJSC |
1,155 | 229,092 | ||||||
Poongsan Corp. |
9,376 | 265,582 | ||||||
POSCO |
2,585 | 654,794 | ||||||
Press Metal Aluminium Holdings Bhd. |
66,000 | 88,616 | ||||||
Qatar Aluminum Manufacturing Co. |
42,858 | 22,318 | ||||||
Raspadskaya OJSC |
4,240 | 25,765 | ||||||
Royal Bafokeng Platinum Ltd. |
5,141 | 37,049 | ||||||
Sansteel Minguang Co. Ltd. Fujian, Class A |
14,100 | 15,093 | ||||||
Saudi Arabian Mining Co.* |
7,498 | 163,117 | ||||||
Seah Besteel Corp. |
6,490 | 120,242 | ||||||
Severstal PAO |
7,040 | 159,826 | ||||||
Shandong Gold Mining Co. Ltd., Class A |
5,100 | 15,875 | ||||||
Shandong Gold Mining Co. Ltd., Class H(a) (b) |
13,650 | 24,812 | ||||||
Shandong Nanshan Aluminum Co. Ltd., Class A |
42,400 | 28,623 | ||||||
Shanxi Taigang Stainless Steel Co. Ltd., Class A |
15,900 | 19,132 | ||||||
Shougang Fushan Resources Group Ltd.(b) |
1,656,000 | 436,403 | ||||||
Sibanye Stillwater Ltd. |
97,735 | 342,973 | ||||||
Steel Authority of India Ltd. |
51,824 | 79,659 | ||||||
TA Chen Stainless Pipe* |
37,793 | 60,002 |
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) | ||||||||
Metals & Mining – (continued) | ||||||||
Tata Steel BSL Ltd.* |
150,315 | $ | 173,437 | |||||
Tata Steel Ltd. |
27,106 | 476,356 | ||||||
Tiangong International Co. Ltd. |
110,000 | 66,461 | ||||||
Tung Ho Steel Enterprise Corp. |
15,000 | 21,792 | ||||||
United Co. RUSAL International PJSC* |
75,100 | 76,157 | ||||||
Usinas Siderurgicas de Minas Gerais SA Usiminas |
400 | 914 | ||||||
Usinas Siderurgicas de Minas Gerais SA Usiminas (Preference), Class A |
12,400 | 29,147 | ||||||
Vale Indonesia Tbk. PT |
58,300 | 19,958 | ||||||
Vale SA |
137,500 | 1,746,740 | ||||||
Vedanta Ltd. |
43,340 | 175,950 | ||||||
Volcan Cia Minera SAA, Class B* |
151,729 | 27,027 | ||||||
VSMPO-AVISMA Corp. PJSC* |
53 | 27,919 | ||||||
Xiamen Tungsten Co. Ltd., Class A |
9,400 | 33,344 | ||||||
YC INOX Co. Ltd. |
165,000 | 187,200 | ||||||
Yieh Phui Enterprise Co. Ltd.* |
55,000 | 49,050 | ||||||
Young Poong Corp. |
348 | 204,294 | ||||||
Yunnan Copper Co. Ltd., Class A |
9,400 | 19,448 | ||||||
Zhaojin Mining Industry Co. Ltd., Class H(b) |
75,000 | 53,702 | ||||||
Zhejiang Huayou Cobalt Co. Ltd., Class A |
2,800 | 48,590 | ||||||
Zijin Mining Group Co. Ltd., Class A |
35,900 | 58,680 | ||||||
Zijin Mining Group Co. Ltd., Class H |
110,000 | 153,283 | ||||||
14,110,240 | ||||||||
Multiline Retail – 0.2% | ||||||||
Central Retail Corp. PCL, NVDR |
75,375 | 78,936 | ||||||
El Puerto de Liverpool SAB de CV, Class C1(b) |
2,700 | 11,972 | ||||||
Falabella SA |
29,041 | 80,524 |
Investments | Shares | Value | ||||||
Multiline Retail – (continued) | ||||||||
Golden Eagle Retail Group Ltd. |
225,000 | $ | 195,814 | |||||
Hyundai Department Store Co. Ltd. |
760 | 53,851 | ||||||
Lojas Renner SA |
16,500 | 94,340 | ||||||
Lotte Shopping Co. Ltd. |
211 | 18,959 | ||||||
Magazine Luiza SA* |
55,000 | 105,473 | ||||||
MINISO Group Holding Ltd., ADR(b) |
954 | 14,320 | ||||||
Mitra Adiperkasa Tbk. PT* |
154,600 | 9,603 | ||||||
Shinsegae, Inc. |
212 | 44,993 | ||||||
Woolworths Holdings Ltd. |
22,660 | 80,368 | ||||||
789,153 | ||||||||
Multi-Utilities – 0.0%(d) | ||||||||
Qatar Electricity & Water Co. QSC |
9,684 | 44,683 | ||||||
SPIC Dongfang New Energy Corp., Class A* |
25,000 | 18,362 | ||||||
YTL Corp. Bhd. |
78,870 | 11,999 | ||||||
YTL Power International Bhd. |
128,031 | 21,797 | ||||||
96,841 | ||||||||
Oil, Gas & Consumable Fuels – 5.2% | ||||||||
Adaro Energy Tbk. PT |
428,300 | 50,788 | ||||||
Aegis Logistics Ltd. |
10,017 | 28,453 | ||||||
AKR Corporindo Tbk. PT |
826,200 | 249,012 | ||||||
Aldrees Petroleum and Transport Services Co. |
3,190 | 62,934 | ||||||
Bangchak Corp. PCL, NVDR |
177,200 | 146,855 | ||||||
Banpu PCL, NVDR |
68,900 | 23,671 | ||||||
Bashneft PJSC* |
1,305 | 27,659 | ||||||
Bashneft PJSC (Preference) |
1,163 | 18,741 | ||||||
Bharat Petroleum Corp. Ltd. |
31,884 | 177,854 | ||||||
Bukit Asam Tbk. PT |
106,000 | 20,052 | ||||||
China Coal Energy Co. Ltd., Class A |
23,500 | 25,633 | ||||||
China Coal Energy Co. Ltd., Class H(b) |
83,000 | 50,574 | ||||||
China Merchants Energy Shipping Co. Ltd., Class A |
16,920 | 12,110 | ||||||
China Petroleum & Chemical Corp., Class A |
117,500 | 78,036 |
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) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
China Petroleum & Chemical Corp., Class H |
836,000 | $ | 410,528 | |||||
China Shenhua Energy Co. Ltd., Class A |
22,000 | 68,379 | ||||||
China Shenhua Energy Co. Ltd., Class H |
110,000 | 236,996 | ||||||
China Suntien Green Energy Corp. Ltd., Class H(b) |
50,000 | 39,851 | ||||||
Coal India Ltd. |
59,290 | 130,209 | ||||||
Cosan SA |
39,664 | 139,250 | ||||||
Dana Gas PJSC |
166,367 | 46,652 | ||||||
Ecopetrol SA |
164,395 | 123,329 | ||||||
Empresas COPEC SA |
8,250 | 65,080 | ||||||
Esso Thailand PCL, NVDR* |
117,400 | 28,127 | ||||||
Exxaro Resources Ltd. |
9,631 | 105,973 | ||||||
Formosa Petrochemical Corp. |
29,000 | 104,285 | ||||||
Gazprom PJSC |
412,500 | 2,034,212 | ||||||
GS Holdings Corp. |
2,530 | 91,474 | ||||||
Guanghui Energy Co. Ltd., Class A* |
37,100 | 38,322 | ||||||
Hellenic Petroleum SA |
3,199 | 22,064 | ||||||
Hindustan Petroleum Corp. Ltd. |
26,455 | 109,662 | ||||||
Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia, Class A |
5,300 | 10,502 | ||||||
Indian Oil Corp. Ltd. |
80,630 | 137,773 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B |
550,000 | 476,850 | ||||||
LUKOIL PJSC |
12,265 | 1,251,281 | ||||||
Mari Petroleum Co. Ltd. |
1,984 | 19,699 | ||||||
Medco Energi Internasional Tbk. PT* |
3,533,440 | 142,161 | ||||||
MOL Hungarian Oil & Gas plc |
20,405 | 174,535 | ||||||
Motor Oil Hellas Corinth Refineries SA* |
2,820 | 47,907 | ||||||
Novatek PJSC |
33,220 | 841,908 | ||||||
Oil & Gas Development Co. Ltd. |
38,500 | 19,163 | ||||||
Oil & Natural Gas Corp. Ltd. |
126,280 | 251,358 | ||||||
Oil India Ltd. |
176,935 | 531,765 | ||||||
Pakistan Oilfields Ltd. |
73,095 | 163,370 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Pakistan Petroleum Ltd. |
29,830 | $ | 13,214 | |||||
Pakistan State Oil Co. Ltd. |
155,430 | 172,729 | ||||||
Petro Rio SA* |
22,000 | 91,598 | ||||||
PetroChina Co. Ltd., Class H |
726,000 | 350,912 | ||||||
Petroleo Brasileiro SA |
126,500 | 620,943 | ||||||
Petroleo Brasileiro SA (Preference) |
160,300 | 774,911 | ||||||
Petronas Dagangan Bhd. |
6,600 | 32,450 | ||||||
Petronet LNG Ltd. |
28,756 | 88,152 | ||||||
PTT Exploration & Production PCL |
469 | 1,661 | ||||||
PTT Exploration & Production PCL, NVDR |
52,331 | 185,305 | ||||||
PTT PCL, NVDR |
297,000 | 340,119 | ||||||
Qatar Fuel QSC |
9,120 | 46,063 | ||||||
Qatar Gas Transport Co. Ltd. |
60,844 | 54,310 | ||||||
Reliance Industries Ltd. |
64,515 | 2,185,142 | ||||||
Rosneft Oil Co. PJSC |
72,122 | 647,013 | ||||||
Rosneft Oil Co. PJSC, GDR(a) |
1,920 | 17,107 | ||||||
Saudi Arabian Oil Co.(a) |
37,565 | 378,064 | ||||||
Semirara Mining & Power Corp. |
581,200 | 299,766 | ||||||
Shaanxi Coal Industry Co. Ltd., Class A |
27,500 | 53,760 | ||||||
Shanxi Coking Coal Energy Group Co. Ltd., Class A |
5,500 | 7,942 | ||||||
Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A |
15,900 | 32,151 | ||||||
Siamgas & Petrochemicals PCL, NVDR |
264,000 | 114,566 | ||||||
SK Discovery Co. Ltd. |
5,885 | 240,225 | ||||||
SK Gas Ltd. |
1,302 | 153,203 | ||||||
SK Innovation Co. Ltd.* |
1,104 | 229,104 | ||||||
S-Oil Corp. |
826 | 72,453 | ||||||
Star Petroleum Refining PCL, NVDR* |
20,000 | 6,329 | ||||||
Surgutneftegas PJSC |
319,000 | 153,338 | ||||||
Surgutneftegas PJSC (Preference) |
225,500 | 122,742 | ||||||
Tatneft PJSC |
22,094 | 168,598 | ||||||
Tatneft PJSC, ADR |
4,806 | 219,875 | ||||||
Tatneft PJSC (Preference) |
7,005 | 48,173 | ||||||
Thai Oil PCL, NVDR |
21,200 | 35,618 |
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) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Transneft PJSC (Preference) |
55 | $ | 117,888 | |||||
Turkiye Petrol Rafinerileri A/S* |
4,290 | 62,375 | ||||||
Ultrapar Participacoes SA |
15,900 | 36,809 | ||||||
United Tractors Tbk. PT |
66,000 | 109,709 | ||||||
Yanzhou Coal Mining Co. Ltd., Class A |
5,300 | 18,701 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H(b) |
52,000 | 77,141 | ||||||
17,215,196 | ||||||||
Paper & Forest Products – 0.5% | ||||||||
Asia Paper Manufacturing Co. Ltd. |
2,530 | 99,377 | ||||||
Chung Hwa Pulp Corp.* |
55,000 | 43,907 | ||||||
Dexco SA |
8,874 | 24,417 | ||||||
Empresas CMPC SA |
26,895 | 49,758 | ||||||
Indah Kiat Pulp & Paper Tbk. PT |
90,900 | 54,376 | ||||||
Kuk-il Paper Manufacturing Co. Ltd.* |
2,756 | 10,118 | ||||||
Lee & Man Paper Manufacturing Ltd. |
47,000 | 35,285 | ||||||
Nine Dragons Paper Holdings Ltd. |
55,000 | 69,147 | ||||||
Pabrik Kertas Tjiwi Kimia Tbk. PT |
53,800 | 31,708 | ||||||
Sappi Ltd.* |
289,245 | 887,335 | ||||||
Shandong Chenming Paper Holdings Ltd., Class A |
21,200 | 23,422 | ||||||
Shandong Chenming Paper Holdings Ltd., Class B |
15,900 | 7,195 | ||||||
Shandong Sun Paper Industry JSC Ltd., Class A |
9,400 | 16,863 | ||||||
Suzano SA* |
16,500 | 144,101 | ||||||
YFY, Inc. |
47,000 | 54,084 | ||||||
1,551,093 | ||||||||
Personal Products – 0.4% | ||||||||
Amorepacific Corp. |
607 | 94,280 | ||||||
AMOREPACIFIC Group |
611 | 25,934 | ||||||
Colgate-Palmolive India Ltd. |
3,836 | 79,024 | ||||||
Cosmax, Inc.* |
547 | 58,045 |
Investments | Shares | Value | ||||||
Personal Products – (continued) | ||||||||
Dabur India Ltd. |
12,155 | $ | 95,097 | |||||
Emami Ltd. |
4,717 | 33,465 | ||||||
Gillette India Ltd. |
103 | 7,760 | ||||||
Godrej Consumer Products Ltd.* |
9,039 | 115,478 | ||||||
Hengan
International Group Co. |
27,500 | 143,703 | ||||||
Hyundai Bioscience Co. Ltd.* |
1,007 | 20,251 | ||||||
Kolmar Korea Co. Ltd. |
142 | 5,426 | ||||||
Kolmar Korea Holdings Co. Ltd. |
4,620 | 91,131 | ||||||
LG Household & Health Care Ltd. |
165 | 165,346 | ||||||
LG Household & Health Care Ltd. (Preference) |
43 | 22,042 | ||||||
Marico Ltd. |
9,900 | 75,154 | ||||||
Microbio Co. Ltd.* |
18,669 | 42,496 | ||||||
Natura & Co. Holding SA* |
17,058 | 117,715 | ||||||
TCI Co. Ltd. |
7,000 | 56,763 | ||||||
Yatsen Holding Ltd., ADR* (b) |
4,876 | 13,653 | ||||||
1,262,763 | ||||||||
Pharmaceuticals – 1.4% | ||||||||
Aarti Drugs Ltd. |
2,809 | 21,966 | ||||||
Ajanta Pharma Ltd. |
384 | 10,870 | ||||||
Alkem Laboratories Ltd. |
516 | 24,881 | ||||||
Apeloa Pharmaceutical Co. Ltd., Class A |
4,700 | 25,500 | ||||||
Aspen Pharmacare Holdings Ltd. |
12,705 | 203,322 | ||||||
AstraZeneca Pharma India Ltd. |
235 | 9,437 | ||||||
Aurobindo Pharma Ltd. |
6,629 | 61,026 | ||||||
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.(b) |
20,000 | 25,530 | ||||||
Binex Co. Ltd.* |
1,942 | 27,421 | ||||||
Bukwang Pharmaceutical Co. Ltd. |
1,431 | 15,981 | ||||||
Cadila Healthcare Ltd. |
4,844 | 32,526 | ||||||
CanSino Biologics, Inc., Class A* |
318 | 13,611 | ||||||
CanSino Biologics, Inc., Class H* (a) (b) |
800 | 20,609 |
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) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Celltrion Pharm, Inc.* |
447 | $ | 43,340 | |||||
Center Laboratories, Inc. |
9,088 | 21,733 | ||||||
Changchun High & New Technology Industry Group, Inc., Class A |
600 | 25,574 | ||||||
China Grand Pharmaceutical and Healthcare Holdings Ltd.(b) |
24,000 | 19,283 | ||||||
China Medical System Holdings Ltd. |
28,000 | 47,728 | ||||||
China Resources Pharmaceutical Group Ltd.(a) |
26,500 | 12,775 | ||||||
China Traditional Chinese Medicine Holdings Co. Ltd. |
120,000 | 57,076 | ||||||
Chong Kun Dang Pharmaceutical Corp. |
98 | 9,854 | ||||||
Chongkundang Holdings Corp. |
1,540 | 107,934 | ||||||
Cipla Ltd. |
9,054 | 109,431 | ||||||
CSPC Pharmaceutical Group Ltd. |
178,080 | 186,343 | ||||||
Daewoong Co. Ltd. |
339 | 9,167 | ||||||
Daewoong Pharmaceutical Co. Ltd. |
49 | 5,870 | ||||||
Dong-A Socio Holdings Co. Ltd. |
104 | 9,389 | ||||||
Dong-A ST Co. Ltd. |
94 | 5,848 | ||||||
DongKook Pharmaceutical Co. Ltd. |
2,120 | 40,729 | ||||||
Dr Reddy’s Laboratories Ltd. |
2,200 | 136,887 | ||||||
Duopharma Biotech Bhd. |
49,466 | 20,188 | ||||||
Enzychem Lifesciences Corp.* |
212 | 12,137 | ||||||
Genomma Lab Internacional SAB de CV, Class B* |
12,000 | 11,508 | ||||||
Gland Pharma Ltd.* (a) |
1,265 | 62,509 | ||||||
GlaxoSmithKline Pharmaceuticals Ltd. |
1,140 | 22,896 | ||||||
Glenmark Pharmaceuticals Ltd. |
8,121 | 54,649 | ||||||
Granules India Ltd. |
9,381 | 38,824 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H |
12,000 | 30,389 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Hanall Biopharma Co. Ltd.* |
919 | $ | 16,043 | |||||
Hanmi Pharm Co. Ltd. |
98 | 22,140 | ||||||
Hanmi Science Co. Ltd. |
646 | 31,511 | ||||||
Hansoh Pharmaceutical Group Co. Ltd.(a) |
16,000 | 35,747 | ||||||
Hua Han Health Industry Holdings Ltd.* ‡ (c) |
3,780,000 | — | ||||||
Hubei Jumpcan Pharmaceutical Co. Ltd., Class A |
4,700 | 11,832 | ||||||
Huons Global Co. Ltd. |
477 | 20,083 | ||||||
Hypera SA* |
8,900 | 44,303 | ||||||
Ilyang Pharmaceutical Co. Ltd. |
795 | 20,274 | ||||||
Ipca Laboratories Ltd. |
1,540 | 44,060 | ||||||
JB Chemicals & Pharmaceuticals Ltd. |
2,226 | 49,886 | ||||||
Jeil Pharmaceutical Co. Ltd. |
371 | 10,795 | ||||||
JETEMA Co. Ltd.* |
954 | 22,410 | ||||||
Jiangsu Hengrui Medicine Co. Ltd., Class A |
8,400 | 64,635 | ||||||
Joincare Pharmaceutical Group Industry Co. Ltd., Class A |
4,700 | 8,468 | ||||||
Jubilant Pharmova Ltd. |
4,141 | 32,970 | ||||||
JW Pharmaceutical Corp. |
236 | 4,716 | ||||||
Kalbe Farma Tbk. PT |
491,100 | 55,462 | ||||||
Komipharm International Co. Ltd.* |
1,425 | 10,963 | ||||||
Korea United Pharm, Inc. |
636 | 26,533 | ||||||
Kwang Dong Pharmaceutical Co. Ltd. |
16,445 | 109,488 | ||||||
Laurus Labs Ltd.(a) |
9,122 | 62,834 | ||||||
Livzon Pharmaceutical Group, Inc., Class H(b) |
3,930 | 12,984 | ||||||
Lupin Ltd. |
4,620 | 56,941 | ||||||
Luye Pharma Group Ltd.* (a) (b) |
880,000 | 419,691 | ||||||
Mega Lifesciences PCL, NVDR |
26,500 | 37,136 | ||||||
Mezzion Pharma Co. Ltd.* |
212 | 28,465 | ||||||
Natco Pharma Ltd. |
4,950 | 54,682 | ||||||
Ocumension Therapeutics* (a) |
16,000 | 34,801 | ||||||
Oneness Biotech Co. Ltd.* |
3,000 | 28,265 |
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) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Oscotec, Inc.* |
1,510 | $ | 38,701 | |||||
Pfizer Ltd. |
341 | 22,985 | ||||||
Pharmally International Holding Co. Ltd.* ‡ (c) |
2,564 | 3,914 | ||||||
Procter & Gamble Health Ltd. |
636 | 46,066 | ||||||
Richter Gedeon Nyrt. |
2,695 | 75,568 | ||||||
Sam Chun Dang Pharm Co. Ltd.* |
890 | 35,835 | ||||||
Sanofi India Ltd. |
163 | 18,169 | ||||||
SciClone Pharmaceuticals Holdings Ltd.* (a) (b) |
82,500 | 112,205 | ||||||
ScinoPharm Taiwan Ltd. |
53,000 | 47,266 | ||||||
Sequent Scientific Ltd. |
3,975 | 10,158 | ||||||
Shandong Buchang Pharmaceuticals Co. Ltd., Class A |
4,700 | 12,846 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A |
4,700 | 36,723 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H(b) |
8,000 | 37,742 | ||||||
Shin Poong Pharmaceutical Co. Ltd. |
432 | 19,150 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd.(b) |
99,000 | 20,871 | ||||||
Sino Biopharmaceutical Ltd. |
193,999 | 143,647 | ||||||
SK Biopharmaceuticals Co. Ltd.* |
605 | 48,978 | ||||||
SSY Group Ltd.(b) |
110,000 | 52,461 | ||||||
Strides Shasun Ltd. |
3,604 | 25,737 | ||||||
Sun Pharmaceutical Industries Ltd. |
22,275 | 236,489 | ||||||
Suven Pharmaceuticals Ltd. |
6,784 | 46,077 | ||||||
Tianjin ZhongXin Pharmaceutical Group Corp. Ltd., Class S |
15,000 | 16,800 | ||||||
Tonghua Dongbao Pharmaceutical Co. Ltd., Class A |
4,700 | 8,953 | ||||||
Torrent Pharmaceuticals Ltd. |
717 | 27,389 | ||||||
TTY Biopharm Co. Ltd. |
15,000 | 37,003 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
United Laboratories International Holdings Ltd. (The) |
440,000 | $ | 278,852 | |||||
Yifan Pharmaceutical Co. Ltd., Class A |
4,700 | 12,038 | ||||||
Yuhan Corp. |
1,091 | 55,925 | ||||||
Yungjin Pharmaceutical Co. Ltd.* |
1,602 | 6,430 | ||||||
Yunnan Baiyao Group Co. Ltd., Class A |
1,100 | 15,402 | ||||||
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A |
700 | 45,168 | ||||||
Zhejiang Huahai Pharmaceutical Co. Ltd., Class A |
4,700 | 13,536 | ||||||
Zhejiang NHU Co. Ltd., Class A |
5,640 | 23,920 | ||||||
4,605,863 | ||||||||
Professional Services – 0.0%(d) | ||||||||
51job, Inc., ADR* |
710 | 42,288 | ||||||
Boa Vista Servicos SA |
5,500 | 8,908 | ||||||
Guangzhou GRG Metrology & Test Co. Ltd., Class A* |
5,500 | 22,105 | ||||||
L&T Technology Services Ltd.(a) |
689 | 43,476 | ||||||
Quess Corp. Ltd.(a) |
3,339 | 38,631 | ||||||
155,408 | ||||||||
Real Estate Management & Development – 4.4% | ||||||||
Agile Group Holdings Ltd. |
46,000 | 36,189 | ||||||
Aldar Properties PJSC |
62,601 | 68,853 | ||||||
Aliansce Sonae Shopping Centers sa |
5,300 | 18,033 | ||||||
A-Living Smart City Services
Co. |
13,250 | 44,456 | ||||||
AP Thailand PCL, NVDR |
429,000 | 114,417 | ||||||
Arabian Centres Co. Ltd. |
1,662 | 11,299 | ||||||
Ayala Land, Inc. |
93,500 | 65,103 | ||||||
Barwa Real Estate Co. |
87,450 | 75,657 | ||||||
BR Malls Participacoes SA* |
31,500 | 40,067 | ||||||
Bumi Serpong Damai Tbk. PT* |
168,600 | 13,210 |
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) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
C&D International Investment Group Ltd.(b) |
286,791 | $ | 536,048 | |||||
Cathay Real Estate Development Co. Ltd. |
33,100 | 23,211 | ||||||
Cencosud Shopping SA |
11,704 | 11,358 | ||||||
Central China New Life Ltd.* (a) (b) |
165,000 | 120,902 | ||||||
Central China Real Estate Ltd.(b) |
440,000 | 66,178 | ||||||
Central Pattana PCL, NVDR |
26,500 | 47,318 | ||||||
China Aoyuan Group Ltd.(b) |
53,000 | 20,916 | ||||||
China Dili Group* |
100,000 | 24,553 | ||||||
China Evergrande Group |
66,000 | 19,684 | ||||||
China Fortune Land Development Co. Ltd., Class A* |
21,110 | 12,140 | ||||||
China Jinmao Holdings Group Ltd. |
220,000 | 64,481 | ||||||
China Logistics Property Holdings Co. Ltd.* (a) (b) |
59,000 | 31,703 | ||||||
China Merchants Property Operation & Service Co. Ltd., Class A |
4,700 | 9,915 | ||||||
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A |
18,800 | 30,641 | ||||||
China Overseas Grand Oceans Group Ltd. |
849,000 | 407,090 | ||||||
China Overseas Land & Investment Ltd. |
118,500 | 261,402 | ||||||
China Overseas Property Holdings Ltd.(b) |
50,000 | 44,993 | ||||||
China Resources Land Ltd. |
90,000 | 350,557 | ||||||
China Resources Mixc Lifestyle Services Ltd.(a) |
10,600 | 55,800 | ||||||
China SCE Group Holdings Ltd.(b) |
854,000 | 266,770 | ||||||
China Vanke Co. Ltd., Class A |
33,000 | 93,906 | ||||||
China Vanke Co. Ltd., Class H |
58,100 | 136,081 | ||||||
Chong Hong Construction Co. Ltd. |
112,000 | 297,233 | ||||||
CIFI Ever Sunshine Services Group Ltd.(a) (b) |
10,000 | 18,151 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
CIFI Holdings Group Co. Ltd. |
133,144 | $ | 73,940 | |||||
Ciputra Development Tbk. PT |
179,449 | 13,616 | ||||||
Corp. Inmobiliaria Vesta SAB de CV |
23,200 | 40,475 | ||||||
Country Garden Holdings Co. Ltd.(b) |
230,832 | 216,914 | ||||||
Country Garden Services Holdings Co. Ltd. |
33,887 | 263,549 | ||||||
DAMAC Properties Dubai Co. PJSC* |
26,553 | 9,036 | ||||||
Dar Al Arkan Real Estate Development Co.* |
8,271 | 21,808 | ||||||
Datang Group Holdings Ltd.(a) (b) |
275,000 | 149,183 | ||||||
Dexin China Holdings Co. Ltd.* (a) (b) |
440,000 | 147,627 | ||||||
DLF Ltd. |
15,220 | 81,017 | ||||||
Dongwon Development Co. Ltd. |
20,625 | 94,781 | ||||||
Eco World Development Group Bhd. |
599,500 | 147,667 | ||||||
E-House China Enterprise Holdings Ltd.(a) (b) |
594,000 | 112,248 | ||||||
Emaar Development PJSC* |
39,052 | 41,464 | ||||||
Emaar Economic City* |
23,375 | 79,144 | ||||||
Emaar Malls PJSC* |
46,896 | 25,534 | ||||||
Emaar Properties PJSC |
98,285 | 107,298 | ||||||
Evergrande Property Services Group Ltd.* (a) |
106,000 | 54,233 | ||||||
Ganglong
China Property Group |
220,000 | 122,174 | ||||||
Gemdale Corp., Class A |
14,100 | 22,364 | ||||||
Gemdale Properties & Investment Corp. Ltd. |
2,860,000 | 279,417 | ||||||
Godrej Properties Ltd.* |
1,507 | 44,946 | ||||||
Greenland Holdings Corp. Ltd., Class A |
29,610 | 19,017 | ||||||
Greenland
Hong Kong Holdings |
440,000 | 93,893 | ||||||
Greentown China Holdings Ltd.(b) |
26,500 | 36,655 | ||||||
Greentown
China Holdings |
53,000 | 26,162 | ||||||
Greentown
Service Group Co. |
30,000 | 29,811 |
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) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Guangzhou R&F Properties Co. Ltd., Class H(b) |
42,400 | $ | 26,599 | |||||
Hanson International Tbk. PT* ‡ (c) |
2,409,275 | 4,251 | ||||||
Highwealth Construction Corp. |
32,500 | 52,533 | ||||||
Hopson
Development Holdings |
25,080 | 68,511 | ||||||
Huaku Development Co. Ltd. |
110,000 | 359,962 | ||||||
Huang Hsiang Construction Corp. |
55,000 | 72,289 | ||||||
Huijing Holdings Co. Ltd. |
106,000 | 26,026 | ||||||
Iguatemi Empresa de Shopping Centers SA |
5,300 | 28,150 | ||||||
IOI Properties Group Bhd. |
52,800 | 16,321 | ||||||
Jiangsu Zhongnan Construction Group Co. Ltd., Class A |
14,100 | 8,439 | ||||||
Jiayuan International Group Ltd.(b) |
683,243 | 264,372 | ||||||
Jinke Properties Group Co. Ltd., Class A |
14,100 | 9,783 | ||||||
Jinke Smart Services Group Co. Ltd., Class H(a) |
5,300 | 28,683 | ||||||
Kaisa Group Holdings Ltd.* (b) |
119,714 | 18,467 | ||||||
KE Holdings, Inc., ADR* |
10,505 | 191,401 | ||||||
Kindom Development Co. Ltd. |
197,400 | 272,584 | ||||||
King’s Town Construction Co. Ltd.* |
55,000 | 72,190 | ||||||
Korea Real Estate Investment & Trust Co. Ltd. |
76,745 | 153,680 | ||||||
Kuo Yang Construction Co. Ltd. |
53,000 | 45,741 | ||||||
KWG Group Holdings Ltd.(b) |
26,500 | 23,165 | ||||||
KWG
Living Group Holdings |
53,000 | 36,042 | ||||||
LAMDA Development SA* |
1,368 | 11,240 | ||||||
Logan Group Co. Ltd.(b) |
29,000 | 29,115 | ||||||
Longfor Group Holdings Ltd.(a) |
60,000 | 291,552 | ||||||
LSR Group PJSC |
25,915 | 272,073 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
LVGEM China Real Estate Investment Co. Ltd.* (b) |
550,000 | $ | 125,144 | |||||
Mabanee Co. KPSC |
18,444 | 48,152 | ||||||
Mah Sing Group Bhd. |
836,000 | 163,526 | ||||||
MBK PCL, NVDR* |
58,344 | 24,616 | ||||||
Megaworld Corp. |
444,200 | 27,052 | ||||||
Midea Real Estate Holding Ltd.(a) |
9,400 | 16,216 | ||||||
MNC Land Tbk. PT* |
1,111,000 | 7,999 | ||||||
Multiplan Empreendimentos Imobiliarios SA* |
500 | 1,643 | ||||||
National Real Estate Co. KPSC* |
9,515 | 6,818 | ||||||
NEPI Rockcastle plc |
16,231 | 109,346 | ||||||
Oberoi Realty Ltd.* |
2,915 | 35,242 | ||||||
Origin Property PCL, NVDR |
533,500 | 181,679 | ||||||
Pakuwon Jati Tbk. PT* |
534,400 | 18,860 | ||||||
Parque Arauco SA* |
15,651 | 15,491 | ||||||
Phoenix Mills Ltd. (The) |
5,214 | 67,127 | ||||||
Poly Developments and Holdings Group Co. Ltd., Class A |
38,500 | 75,564 | ||||||
Poly Property Group Co. Ltd.(b) |
1,045,000 | 257,924 | ||||||
Poly Property Services Co. Ltd., Class H(a) (b) |
4,800 | 26,965 | ||||||
Powerlong Real Estate Holdings Ltd. |
41,000 | 28,250 | ||||||
Prestige Estates Projects Ltd. |
6,042 | 34,381 | ||||||
Prince Housing & Development Corp. |
50,000 | 23,824 | ||||||
Pruksa Holding PCL, NVDR |
326,900 | 135,952 | ||||||
Quality Houses PCL, NVDR |
2,380,200 | 164,980 | ||||||
Radiance Holdings Group Co. Ltd.* (a) (b) |
330,000 | 172,656 | ||||||
Redco Properties Group Ltd.(a) (b) |
492,000 | 151,160 | ||||||
Redsun Properties Group Ltd.(b) |
476,000 | 137,066 | ||||||
RiseSun Real Estate Development Co. Ltd., Class A |
9,400 | 6,302 | ||||||
Road King Infrastructure Ltd.(b) |
134,000 | 135,567 |
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) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Robinsons Land Corp. |
56,106 | $ | 18,921 | |||||
Ronshine China Holdings Ltd.* (a) (b) |
262,500 | 106,295 | ||||||
Ruentex Development Co. Ltd. |
76,600 | 195,298 | ||||||
Salhia Real Estate Co. KSCP |
203,940 | 389,681 | ||||||
Saudi Real Estate Co.* |
2,226 | 13,258 | ||||||
Seazen Group Ltd.* |
80,000 | 63,452 | ||||||
Seazen Holdings Co. Ltd., Class A |
4,700 | 25,148 | ||||||
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B |
137,500 | 123,612 | ||||||
Shanghai Lingang Holdings Corp. Ltd., Class A |
5,640 | 12,965 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A |
15,900 | 26,909 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B |
17,540 | 15,593 | ||||||
Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A |
4,700 | 12,258 | ||||||
Shenzhen Investment Ltd. |
99,930 | 24,536 | ||||||
Shimao Group Holdings Ltd.(b) |
32,000 | 50,351 | ||||||
Shimao Services Holdings Ltd.(a) (b) |
11,000 | 20,985 | ||||||
Shining Building Business Co. Ltd.* |
55,000 | 21,954 | ||||||
Shinsun Holdings Group Co. Ltd.* (a) (b) |
330,000 | 195,139 | ||||||
Shoucheng
Holdings |
110,000 | 23,332 | ||||||
Shui On Land Ltd. |
1,870,000 | 276,448 | ||||||
Sichuan Languang Justbon Services Group Co. Ltd., Class H* (c) |
26,500 | 184,467 | ||||||
Sime Darby Property Bhd. |
178,200 | 31,199 | ||||||
Sinic Holdings Group Co. Ltd., Class H* ‡ (a) (c) |
318,000 | 20,627 | ||||||
Sino-Ocean Group Holding Ltd. |
1,622,500 | 352,488 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
SK D&D Co. Ltd. |
3,822 | $ | 103,191 | |||||
Skyfame Realty Holdings Ltd. |
1,650,000 | 195,139 | ||||||
SM Prime Holdings, Inc. |
242,000 | 158,901 | ||||||
SOHO China Ltd.* |
76,000 | 19,247 | ||||||
SP Setia Bhd. Group* |
75,694 | 28,515 | ||||||
Summarecon Agung Tbk. PT* |
227,900 | 14,719 | ||||||
Sunac China Holdings Ltd. |
90,000 | 193,905 | ||||||
Sunac Services Holdings Ltd.(a) |
24,000 | 48,685 | ||||||
Supalai PCL, NVDR |
29,000 | 20,451 | ||||||
Talaat Moustafa Group |
508,281 | 239,419 | ||||||
Times China Holdings Ltd.(b) |
29,000 | 19,795 | ||||||
United Development Co. QSC |
67,999 | 29,004 | ||||||
UOA Development Bhd. |
20,600 | 8,706 | ||||||
Vista Land & Lifescapes, Inc. |
1,565,200 | 117,056 | ||||||
WHA Corp. PCL, NVDR |
113,390 | 11,550 | ||||||
Wharf Holdings Ltd. (The) |
55,000 | 190,897 | ||||||
Yango Group Co. Ltd., Class A |
14,100 | 7,095 | ||||||
Yuexiu Property Co. Ltd. |
63,600 | 56,086 | ||||||
Yuzhou
Group Holdings Co. |
1,094,349 | 119,577 | ||||||
Zhenro
Properties Group |
87,000 | 41,380 | ||||||
Zhongliang Holdings Group Co. Ltd.(a) (b) |
341,500 | 157,601 | ||||||
Zhongtian Financial Group Co. Ltd., Class A* |
28,200 | 11,061 | ||||||
Zhuguang Holdings Group Co. Ltd.(b) |
1,210,000 | 265,984 | ||||||
14,637,839 | ||||||||
Road & Rail – 0.1% | ||||||||
BTS Group Holdings PCL, NVDR |
103,040 | 29,655 | ||||||
Cia de Locacao das Americas* |
4,500 | 15,750 | ||||||
CJ Logistics Corp.* |
150 | 18,228 | ||||||
Container Corp. of India Ltd. |
4,571 | 39,989 | ||||||
Dazhong Transportation Group Co. Ltd., Class B* |
200 | 57 | ||||||
Localiza Rent a Car SA |
10,050 | 80,764 | ||||||
Rumo SA* |
22,000 | 62,406 |
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) | ||||||||
Road & Rail – (continued) | ||||||||
SIMPAR SA |
17,376 | $ | 31,596 | |||||
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA* |
5,500 | 11,055 | ||||||
289,500 | ||||||||
Semiconductors & Semiconductor Equipment – 5.6% | ||||||||
ADATA Technology Co. Ltd. |
16,000 | 47,755 | ||||||
Advanced Wireless Semiconductor Co. |
11,000 | 63,092 | ||||||
Alchip Technologies Ltd. |
1,000 | 37,039 | ||||||
Ardentec Corp. |
220,000 | 469,928 | ||||||
ASE Technology Holding Co. Ltd. |
121,000 | 434,249 | ||||||
ASMedia Technology, Inc. |
1,000 | 58,435 | ||||||
Chipbond Technology Corp. |
15,000 | 34,684 | ||||||
ChipMOS Technologies, Inc. |
31,000 | 51,446 | ||||||
D&O Green Technologies Bhd. |
31,800 | 43,311 | ||||||
Daqo New Energy Corp., ADR* |
1,463 | 113,807 | ||||||
DB HiTek Co. Ltd. |
1,839 | 90,490 | ||||||
Elan Microelectronics Corp. |
4,000 | 24,021 | ||||||
eMemory Technology, Inc. |
1,000 | 82,709 | ||||||
ENNOSTAR, Inc. |
7,000 | 18,376 | ||||||
Eo Technics Co. Ltd. |
134 | 12,304 | ||||||
Episil Technologies, Inc.* |
17,259 | 94,647 | ||||||
Eugene Technology Co. Ltd. |
1,219 | 46,473 | ||||||
Everlight Electronics Co. Ltd. |
220,000 | 391,607 | ||||||
Flat Glass Group Co. Ltd., Class A |
5,000 | 42,981 | ||||||
Flat Glass Group Co. Ltd., Class H(b) |
7,000 | 37,794 | ||||||
FocalTech Systems Co. Ltd. |
4,000 | 23,015 | ||||||
Foxsemicon Integrated Technology, Inc. |
6,000 | 44,123 | ||||||
GCL System Integration Technology Co. Ltd., Class A* |
53,000 | 33,377 | ||||||
GemVax & Kael Co. Ltd.* |
920 | 14,683 | ||||||
Gigadevice Semiconductor Beijing, Inc., Class A |
2,240 | 59,335 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Global Lighting Technologies, Inc. |
41,000 | $ | 118,687 | |||||
Globalwafers Co. Ltd. |
4,000 | 109,319 | ||||||
Gudeng Precision Industrial Co. Ltd. |
4,000 | 34,810 | ||||||
Hana Materials, Inc. |
318 | 13,906 | ||||||
Hangzhou Silan Microelectronics Co. Ltd., Class A |
5,000 | 48,185 | ||||||
Holtek Semiconductor, Inc. |
6,000 | 22,223 | ||||||
Hua Hong Semiconductor Ltd.* (a) (b) |
11,000 | 55,431 | ||||||
Innox Advanced Materials Co. Ltd.* |
1,870 | 67,852 | ||||||
ITE Technology, Inc. |
11,000 | 41,139 | ||||||
JA Solar Technology Co. Ltd., Class A |
5,000 | 71,297 | ||||||
JCET Group Co. Ltd., Class A |
5,300 | 25,600 | ||||||
Jusung Engineering Co. Ltd.* |
2,862 | 27,553 | ||||||
KC Tech Co. Ltd. |
7,095 | 136,308 | ||||||
King Yuan Electronics Co. Ltd. |
35,000 | 50,030 | ||||||
Kinsus Interconnect Technology Corp. |
3,000 | 26,323 | ||||||
Koh Young Technology, Inc. |
1,007 | 15,899 | ||||||
LandMark Optoelectronics Corp. |
5,000 | 32,095 | ||||||
LEENO Industrial, Inc. |
180 | 26,371 | ||||||
LONGi Green Energy Technology Co. Ltd., Class A |
7,620 | 116,325 | ||||||
LX Semicon Co. Ltd. |
411 | 38,548 | ||||||
Macronix International Co. Ltd. |
80,000 | 112,771 | ||||||
Malaysian Pacific Industries Bhd. |
5,500 | 63,328 | ||||||
MediaTek, Inc. |
31,000 | 1,017,782 | ||||||
Mi Technovation Bhd. |
26,500 | 24,574 | ||||||
MiCo Ltd.* |
1,855 | 22,145 | ||||||
MLS Co. Ltd., Class A |
6,600 | 14,367 | ||||||
Nanya Technology Corp. |
21,000 | 50,218 | ||||||
NAURA Technology Group Co. Ltd., Class A |
1,200 | 69,617 | ||||||
NEPES Corp.* |
1,325 | 39,743 | ||||||
NEXTIN, Inc.* |
265 | 12,042 |
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) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Novatek Microelectronics Corp. |
10,000 | $ | 149,415 | |||||
Nuvoton Technology Corp. |
9,000 | 41,426 | ||||||
Pan Jit International, Inc. |
13,000 | 52,592 | ||||||
Parade Technologies Ltd. |
1,400 | 89,865 | ||||||
Phison Electronics Corp. |
3,000 | 42,127 | ||||||
Pixart Imaging, Inc. |
9,000 | 50,974 | ||||||
Powertech Technology, Inc. |
21,000 | 73,553 | ||||||
Radiant Opto-Electronics Corp. |
14,330 | 50,140 | ||||||
RDC Semiconductor Co. Ltd.* |
3,000 | 42,721 | ||||||
Realtek Semiconductor Corp. |
10,070 | 180,698 | ||||||
RFHIC Corp. |
829 | 22,205 | ||||||
S&S Tech Corp. |
423 | 13,285 | ||||||
Sanan Optoelectronics Co. Ltd., Class A |
9,400 | 49,355 | ||||||
Seoul Semiconductor Co. Ltd. |
1,370 | 17,469 | ||||||
SFA Semicon Co. Ltd.* |
3,233 | 17,513 | ||||||
Shenzhen Goodix Technology Co. Ltd., Class A |
1,800 | 28,800 | ||||||
Shinsung E&G Co. Ltd.* |
7,632 | 15,414 | ||||||
Sigurd Microelectronics Corp. |
220,000 | 463,599 | ||||||
Silergy Corp. |
2,000 | 329,396 | ||||||
Silicon Integrated Systems Corp. |
17,240 | 14,817 | ||||||
SIMMTECH Co. Ltd. |
10,010 | 262,553 | ||||||
Sino-American Silicon Products, Inc. |
13,000 | 88,588 | ||||||
Sitronix Technology Corp. |
1,000 | 9,583 | ||||||
SK Hynix, Inc. |
18,755 | 1,653,130 | ||||||
Taiwan Mask Corp. |
13,000 | 37,305 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
385,000 | 8,168,366 | ||||||
Taiwan Surface Mounting Technology Corp. |
13,000 | 52,358 | ||||||
Tianjin Zhonghuan Semiconductor Co. Ltd., Class A |
4,700 | 38,456 | ||||||
Tianshui Huatian Technology Co. Ltd., Class A |
10,800 | 21,687 | ||||||
Tokai Carbon Korea Co. Ltd. |
86 | 9,199 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
TongFu Microelectronics Co. Ltd., Class A |
4,700 | $ | 14,704 | |||||
Topco Scientific Co. Ltd. |
80,000 | 397,001 | ||||||
TSE Co. Ltd. |
165 | 8,486 | ||||||
United Microelectronics Corp. |
220,000 | 458,853 | ||||||
United Renewable Energy Co. Ltd.* |
56,574 | 48,622 | ||||||
UniTest, Inc.* |
636 | 16,056 | ||||||
Vanguard International Semiconductor Corp. |
13,000 | 67,551 | ||||||
Via Technologies, Inc. |
110,000 | 245,644 | ||||||
ViTrox Corp. Bhd. |
4,800 | 22,812 | ||||||
Wafer Works Corp. |
34,511 | 79,674 | ||||||
Will Semiconductor Co. Ltd. Shanghai, Class A |
600 | 24,940 | ||||||
Win Semiconductors Corp. |
6,961 | 89,489 | ||||||
Winbond Electronics Corp. |
59,000 | 55,799 | ||||||
Wonik Holdings Co. Ltd.* |
19,305 | 85,906 | ||||||
WONIK IPS Co. Ltd. |
824 | 28,523 | ||||||
Wuxi Taiji Industry Co. Ltd., Class A |
21,200 | 26,503 | ||||||
XinTec, Inc. |
3,000 | 14,564 | ||||||
Xinyi Solar Holdings Ltd. |
81,343 | 170,235 | ||||||
18,816,120 | ||||||||
Software – 0.3% | ||||||||
360 Security Technology, Inc., Class A* |
26,500 | 49,859 | ||||||
Agora, Inc., ADR* |
1,696 | 36,973 | ||||||
Ahnlab, Inc. |
190 | 13,333 | ||||||
AsiaInfo Technologies Ltd.(a) |
21,200 | 34,992 | ||||||
Birlasoft Ltd. |
9,845 | 53,438 | ||||||
China Youzan Ltd.* (b) |
300,000 | 38,179 | ||||||
Cyient Ltd. |
4,950 | 70,616 | ||||||
Douzone Bizon Co. Ltd. |
530 | 36,874 | ||||||
Iflytek Co. Ltd., Class A |
4,700 | 41,438 | ||||||
Intellect Design Arena Ltd.* |
5,035 | 44,018 | ||||||
Kingdee International Software Group Co. Ltd.* (b) |
55,000 | 181,706 | ||||||
Ming Yuan Cloud Group Holdings Ltd.* (b) |
11,000 | 36,058 | ||||||
Oracle Financial Services Software Ltd. |
632 | 37,343 |
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) | ||||||||
Software – (continued) | ||||||||
Route Mobile Ltd. |
954 | $ | 23,922 | |||||
Shanghai Baosight Software Co. Ltd., Class A |
5,200 | 56,881 | ||||||
Shanghai Baosight Software Co. Ltd., Class B |
14,430 | 57,677 | ||||||
Tanla Platforms Ltd. |
3,710 | 60,480 | ||||||
Tata Elxsi Ltd. |
990 | 77,637 | ||||||
TOTVS SA |
11,100 | 64,509 | ||||||
Weimob, Inc.* (a) (b) |
25,000 | 38,758 | ||||||
Yonyou Network Technology Co. Ltd., Class A |
4,700 | 23,356 | ||||||
1,078,047 | ||||||||
Specialty Retail – 1.5% | ||||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
54,340 | 63,318 | ||||||
Ace Hardware Indonesia Tbk. PT |
206,000 | 20,502 | ||||||
China Meidong Auto Holdings Ltd. |
8,000 | 41,548 | ||||||
China Tourism Group Duty Free Corp. Ltd., Class A |
2,500 | 104,879 | ||||||
China Yongda Automobiles Services Holdings Ltd. |
61,500 | 98,349 | ||||||
Cuckoo Homesys Co. Ltd. |
3,410 | 126,939 | ||||||
Detsky Mir PJSC(a) |
270,050 | 521,291 | ||||||
EEKA Fashion Holdings Ltd.(b) |
137,500 | 213,522 | ||||||
Foschini Group Ltd. (The)* |
11,456 | 97,753 | ||||||
GOME Retail Holdings Ltd.* (b) |
603,447 | 61,283 | ||||||
Grupo SBF SA* |
5,300 | 19,688 | ||||||
Home Product Center PCL, NVDR |
63,300 | 27,851 | ||||||
Hotai Motor Co. Ltd. |
6,000 | 132,046 | ||||||
Hotel Shilla Co. Ltd. |
396 | 29,618 | ||||||
Italtile Ltd. |
10,931 | 12,700 | ||||||
Jarir Marketing Co. |
839 | 45,362 | ||||||
JUMBO SA |
2,397 | 35,617 | ||||||
LOTTE Himart Co. Ltd. |
4,606 | 108,986 | ||||||
M.Video PJSC |
31,680 | 263,266 | ||||||
Motus Holdings Ltd. |
91,300 | 612,251 | ||||||
MR DIY Group M Bhd.(a) |
42,400 | 38,601 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
Mr Price Group Ltd. |
5,830 | $ | 76,695 | |||||
Pan German Universal Motors Ltd. |
18,000 | 138,843 | ||||||
Pepkor Holdings Ltd.* (a) |
10,335 | 16,339 | ||||||
Pet Center Comercio e Participacoes SA |
11,807 | 39,315 | ||||||
Pop Mart International Group Ltd.* (a) |
11,000 | 64,976 | ||||||
Pou Sheng International Holdings Ltd.* |
1,213,000 | 204,270 | ||||||
PTG Energy PCL, NVDR |
26,300 | 12,364 | ||||||
PTT Oil & Retail Business PCL, NVDR |
82,500 | 68,372 | ||||||
Shanghai Yuyuan Tourist Mart Group Co. Ltd. |
18,800 | 28,879 | ||||||
Shinsegae International, Inc. |
81 | 11,645 | ||||||
Siam Global House PCL, NVDR |
16,622 | 10,219 | ||||||
Suning.com Co. Ltd., Class A* |
23,500 | 16,415 | ||||||
Super Group Ltd. |
193,930 | 407,253 | ||||||
Topsports International Holdings Ltd.(a) (b) |
55,000 | 66,885 | ||||||
Truworths International Ltd. |
225,390 | 799,541 | ||||||
United Electronics Co. |
2,035 | 76,389 | ||||||
Via S/A* |
28,700 | 31,312 | ||||||
Vibra Energia SA |
22,000 | 81,880 | ||||||
Zhongsheng
Group Holdings |
9,000 | 81,392 | ||||||
4,908,354 | ||||||||
Technology Hardware, Storage & Peripherals – 4.9% | ||||||||
Acer, Inc. |
47,858 | 44,746 | ||||||
Advantech Co. Ltd. |
7,941 | 103,658 | ||||||
Asia Vital Components Co. Ltd. |
122,000 | 363,695 | ||||||
Asustek Computer, Inc. |
24,000 | 304,655 | ||||||
AURAS Technology Co. Ltd. |
37,000 | 212,219 | ||||||
Catcher Technology Co. Ltd. |
24,000 | 138,950 | ||||||
Chicony Electronics Co. Ltd. |
15,992 | 45,661 | ||||||
Clevo Co. |
55,000 | 68,136 | ||||||
CMC Magnetics Corp.* |
55,000 | 17,444 | ||||||
Compal Electronics, Inc. |
165,000 | 145,073 | ||||||
CosmoAM&T Co. Ltd.* |
1,166 | 41,958 | ||||||
Getac Holdings Corp. |
13,000 | 24,449 |
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) | ||||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Gigabyte Technology Co. Ltd. |
20,000 | $ | 80,910 | |||||
HTC Corp.* |
18,000 | 42,462 | ||||||
Innodisk Corp. |
4,733 | 32,593 | ||||||
Inventec Corp. |
142,000 | 135,574 | ||||||
KONA I Co. Ltd.* |
689 | 20,342 | ||||||
Legend Holdings Corp., Class H(a) |
312,500 | 549,553 | ||||||
Lenovo Group Ltd.(b) |
220,000 | 239,258 | ||||||
Lite-On Technology Corp. |
83,000 | 182,962 | ||||||
Micro-Star International Co. Ltd. |
31,000 | 156,067 | ||||||
Mitac Holdings Corp. |
46,600 | 48,178 | ||||||
Ninestar Corp., Class A |
4,700 | 26,977 | ||||||
Pegatron Corp. |
81,000 | 198,069 | ||||||
Primax Electronics Ltd. |
220,000 | 407,429 | ||||||
Qisda Corp. |
62,000 | 69,116 | ||||||
Quanta Computer, Inc. |
98,000 | 274,880 | ||||||
Samsung Electronics Co. Ltd. |
176,715 | 10,555,566 | ||||||
Samsung Electronics Co. Ltd. (Preference) |
28,600 | 1,566,386 | ||||||
Shenzhen Kaifa Technology Co. Ltd., Class A |
4,700 | 10,870 | ||||||
Sunrex Technology Corp. |
39,000 | 60,866 | ||||||
Wistron Corp. |
110,000 | 115,504 | ||||||
Wiwynn Corp. |
3,000 | 95,906 | ||||||
16,380,112 | ||||||||
Textiles, Apparel & Luxury Goods – 1.4% | ||||||||
Aditya Birla Fashion and Retail Ltd.* |
6,536 | 22,956 | ||||||
Aksa Akrilik Kimya Sanayii A/S |
70,895 | 172,829 | ||||||
Alok Industries Ltd.* |
659,670 | 193,810 | ||||||
Alpargatas SA (Preference)* |
5,500 | 37,691 | ||||||
ANTA Sports Products Ltd. |
22,000 | 343,898 | ||||||
Arezzo Industria e Comercio SA |
3,752 | 49,188 | ||||||
Bata India Ltd. |
848 | 22,416 | ||||||
Bosideng International Holdings Ltd.(b) |
96,000 | 74,539 | ||||||
Eclat Textile Co. Ltd. |
4,698 | 102,547 | ||||||
F&F Holdings Co. Ltd. |
103 | 3,438 |
Investments | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Feng TAY Enterprise Co. Ltd. |
10,600 | $ | 82,335 | |||||
FF Group* ‡ (c) |
3,536 | — | ||||||
Fila Holdings Corp. |
1,167 | 37,051 | ||||||
Fuguiniao Group Ltd.* ‡ (c) |
334,800 | — | ||||||
Grendene SA |
8,264 | 12,579 | ||||||
Grupo de Moda Soma SA* |
15,900 | 37,007 | ||||||
Guararapes Confeccoes SA* |
13,200 | 25,641 | ||||||
Handsome Co. Ltd. |
5,445 | 196,403 | ||||||
Hansae Co. Ltd. |
1,281 | 25,433 | ||||||
Hwaseung Enterprise Co. Ltd. |
331 | 4,872 | ||||||
Hyosung TNC Corp. |
110 | 56,198 | ||||||
JNBY Design Ltd.(a) |
27,500 | 46,169 | ||||||
Lao Feng Xiang Co. Ltd., Class B |
2,500 | 8,820 | ||||||
LF Corp. |
9,405 | 147,286 | ||||||
Li Ning Co. Ltd. |
41,500 | 461,464 | ||||||
Li Peng Enterprise Co. Ltd.* |
55,000 | 20,470 | ||||||
Makalot Industrial Co. Ltd. |
4,334 | 37,794 | ||||||
Nan Liu Enterprise Co. Ltd. |
23,000 | 101,731 | ||||||
Page Industries Ltd. |
130 | 65,339 | ||||||
Pou Chen Corp. |
110,000 | 134,887 | ||||||
Rajesh Exports Ltd. |
69,004 | 588,155 | ||||||
Ruentex Industries Ltd. |
20,540 | 80,141 | ||||||
Shenzhou International Group Holdings Ltd. |
16,500 | 355,917 | ||||||
Tainan Spinning Co. Ltd. |
48,555 | 39,635 | ||||||
Taiwan Paiho Ltd. |
17,000 | 52,818 | ||||||
Texhong Textile Group Ltd. |
137,500 | 205,745 | ||||||
Titan Co. Ltd. |
8,195 | 260,856 | ||||||
Trident Ltd. |
601,920 | 305,055 | ||||||
Vaibhav Global Ltd. |
3,286 | 25,217 | ||||||
Vivara Participacoes SA |
5,300 | 24,389 | ||||||
Welspun India Ltd. |
7,370 | 13,553 | ||||||
Youngone Corp. |
890 | 34,007 | ||||||
Youngone Holdings Co. Ltd. |
2,708 | 108,918 | ||||||
4,619,197 | ||||||||
Thrifts & Mortgage Finance – 0.5% | ||||||||
Aavas Financiers Ltd.* |
611 | 22,853 | ||||||
Can Fin Homes Ltd. |
4,876 | 40,818 | ||||||
Housing Development Finance Corp. Ltd. |
36,135 | 1,372,750 | ||||||
LIC Housing Finance Ltd. |
11,330 | 61,559 |
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) | ||||||||
Thrifts & Mortgage Finance – (continued) | ||||||||
PNB Housing Finance Ltd.* (a) |
13,255 | $ | 85,471 | |||||
1,583,451 | ||||||||
Tobacco – 0.3% | ||||||||
British American Tobacco Malaysia Bhd. |
5,900 | 21,514 | ||||||
Eastern Co. SAE |
29,100 | 21,487 | ||||||
Gudang Garam Tbk. PT |
14,900 | 35,232 | ||||||
ITC Ltd. |
65,395 | 194,924 | ||||||
KT&G Corp. |
3,520 | 244,296 | ||||||
Philip Morris CR A/S |
220 | 156,503 | ||||||
RLX Technology, Inc., ADR* |
31,680 | 153,965 | ||||||
Smoore
International Holdings |
33,000 | 158,233 | ||||||
986,154 | ||||||||
Trading Companies & Distributors – 0.5% | ||||||||
Adani Enterprises Ltd. |
5,186 | 98,593 | ||||||
ALAFCO Aviation Lease & Finance Co. KSCP* |
161,535 | 127,535 | ||||||
Barloworld Ltd. |
105,348 | 889,151 | ||||||
BOC Aviation Ltd.(a) (b) |
9,400 | 82,472 | ||||||
COSCO SHIPPING Development Co. Ltd., Class A |
37,600 | 20,388 | ||||||
IndiaMart InterMesh Ltd.(a) |
192 | 18,324 | ||||||
LX International Corp. |
13,310 | 309,244 | ||||||
Posco International Corp. |
1,484 | 27,558 | ||||||
SK Networks Co. Ltd. |
2,415 | 10,519 | ||||||
Xiamen C & D, Inc., Class A |
9,400 | 11,766 | ||||||
1,595,550 | ||||||||
Transportation Infrastructure – 1.2% | ||||||||
Adani Ports & Special Economic Zone Ltd. |
13,038 | 120,662 | ||||||
Airports of Thailand PCL |
54,000 | 104,965 | ||||||
Airports of Thailand PCL, NVDR |
28,500 | 55,398 | ||||||
Anhui Expressway Co. Ltd., Class H |
148,000 | 87,898 | ||||||
Bangkok Expressway & Metro PCL, NVDR |
136,300 | 36,968 |
Investments | Shares | Value | ||||||
Transportation Infrastructure – (continued) | ||||||||
Beijing Capital International Airport Co. Ltd., Class H* (b) |
110,000 | $ | 71,410 | |||||
CCR SA |
14,100 | 28,590 | ||||||
China Merchants Port Holdings Co. Ltd. |
55,407 | 92,594 | ||||||
COSCO SHIPPING Ports Ltd. |
888,749 | 740,334 | ||||||
EcoRodovias Infraestrutura e Logistica SA* |
4,700 | 6,829 | ||||||
Evergreen International Storage & Transport Corp. |
50,000 | 48,636 | ||||||
GMR Infrastructure Ltd.* |
48,418 | 26,219 | ||||||
Grupo Aeroportuario del Centro Norte SAB de CV* |
12,181 | 73,662 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B* |
5,500 | 69,484 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B |
3,800 | 76,801 | ||||||
Hainan Meilan International Airport Co. Ltd.* |
6,000 | 24,335 | ||||||
International Container Terminal Services, Inc. |
18,150 | 64,809 | ||||||
Jasa Marga Persero Tbk. PT* |
39,723 | 11,776 | ||||||
Jiangsu Expressway Co. Ltd., Class H |
20,000 | 18,923 | ||||||
Lingkaran Trans Kota Holdings Bhd. |
132,000 | 122,724 | ||||||
Malaysia Airports Holdings Bhd.* |
27,900 | 43,659 | ||||||
MMC Corp. Bhd. |
478,500 | 228,792 | ||||||
Ningbo Zhoushan Port Co. Ltd., Class A |
23,500 | 13,771 | ||||||
Novorossiysk Commercial Sea Port PJSC |
1,526,196 | 167,005 | ||||||
Promotora y Operadora de Infraestructura SAB de CV |
2,160 | 15,919 | ||||||
Qingdao Port International Co. Ltd., Class H(a) (b) |
47,000 | 23,624 | ||||||
Santos Brasil Participacoes SA* |
31,800 | 29,053 | ||||||
Saudi Ground Services Co.* |
636 | 6,325 | ||||||
Shanghai International Airport Co. Ltd., Class A* |
5,300 | 43,730 | ||||||
Shanghai International Port Group Co. Ltd., Class A |
63,300 | 55,987 |
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) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Shenzhen Airport Co. Ltd., Class A* |
9,400 | $ | 11,105 | |||||
Shenzhen Expressway Co. Ltd., Class A |
9,400 | 14,248 | ||||||
Shenzhen Expressway Co. Ltd., Class H |
22,000 | 20,730 | ||||||
Shenzhen International Holdings Ltd. |
33,343 | 40,248 | ||||||
Shenzhen Investment Holdings Bay Area Development Co. Ltd. |
275,000 | 100,398 | ||||||
Sichuan Expressway Co. Ltd., Class H(b) |
330,000 | 76,359 | ||||||
Sociedad Matriz SAAM SA |
2,531,540 | 158,480 | ||||||
Taiwan High Speed Rail Corp. |
56,000 | 58,500 | ||||||
TAV Havalimanlari Holding A/S* |
10,176 | 28,130 | ||||||
Westports Holdings Bhd. |
17,500 | 18,890 | ||||||
Yuexiu Transport Infrastructure Ltd. |
440,000 | 281,680 | ||||||
Zhejiang Expressway Co. Ltd., Class H |
770,000 | 683,978 | ||||||
4,003,628 | ||||||||
Water Utilities – 0.5% | ||||||||
Aguas Andinas SA, Class A |
36,828 | 7,036 | ||||||
Beijing Enterprises Water Group Ltd.(b) |
242,000 | 92,394 | ||||||
China Water Affairs Group Ltd.(b) |
440,000 | 453,629 | ||||||
Chongqing Water Group Co. Ltd., Class A |
18,800 | 16,481 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* |
10,000 | 62,445 | ||||||
Cia de Saneamento de Minas Gerais-COPASA |
99,000 | 239,026 | ||||||
Cia de Saneamento do Parana* |
121,000 | 391,742 | ||||||
Grandblue Environment Co. Ltd., Class A |
4,700 | 16,232 | ||||||
Guangdong Investment Ltd. |
110,000 | 138,577 | ||||||
Inversiones Aguas Metropolitanas SA |
266,242 | 125,469 |
Investments | Shares | Value | ||||||
Water Utilities – (continued) | ||||||||
Luenmei Quantum Co. Ltd., Class A |
9,400 | $ | 12,133 | |||||
1,555,164 | ||||||||
Wireless Telecommunication Services – 1.1% | ||||||||
Advanced Info Service PCL, NVDR |
20,400 | 116,194 | ||||||
America Movil SAB de CV, Series L |
786,500 | 702,540 | ||||||
Axiata Group Bhd. |
86,304 | 82,323 | ||||||
Bharti Airtel Ltd.* (c) |
3,279 | 14,792 | ||||||
Bharti Airtel Ltd. – XNSE* |
45,915 | 420,237 | ||||||
DiGi.Com Bhd. |
71,500 | 73,037 | ||||||
Empresa Nacional de Telecomunicaciones SA |
1,467 | 5,043 | ||||||
Etihad Etisalat Co. |
5,160 | 41,614 | ||||||
Far EasTone Telecommunications Co. Ltd. |
30,000 | 66,023 | ||||||
Globe Telecom, Inc. |
1,100 | 65,376 | ||||||
Indosat Tbk. PT* |
31,800 | 15,544 | ||||||
Intouch Holdings PCL, NVDR |
21,200 | 48,076 | ||||||
Maxis Bhd. |
32,900 | 37,103 | ||||||
Mobile Telecommunications Co. KSCP |
79,695 | 157,566 | ||||||
Mobile Telecommunications Co. Saudi Arabia* |
15,658 | 56,689 | ||||||
Mobile TeleSystems PJSC |
31,356 | 137,003 | ||||||
MTN Group Ltd.* |
59,015 | 531,834 | ||||||
PLDT, Inc. |
3,440 | 112,051 | ||||||
Sistema PJSFC |
122,643 | 46,595 | ||||||
SK Telecom Co. Ltd.(c) |
1,237 | 327,629 | ||||||
Smartfren Telecom Tbk. PT* |
2,936,200 | 22,383 | ||||||
Taiwan Mobile Co. Ltd. |
30,000 | 105,831 | ||||||
TIM SA* |
24,700 | 49,163 | ||||||
Total Access Communication PCL, NVDR |
15,200 | 17,521 | ||||||
Turkcell Iletisim Hizmetleri A/S |
42,625 | 67,782 | ||||||
Vodacom Group Ltd. |
26,675 | 237,934 | ||||||
Vodafone Idea Ltd.* |
97,468 | 12,431 | ||||||
Vodafone Qatar QSC |
151,140 | 67,247 | ||||||
3,637,561 | ||||||||
Total Common
Stocks (Cost $273,639,108) |
332,482,606 |
See Accompanying Notes to the Financial Statements.
264 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Principal Amount |
Value | ||||||
CORPORATE BONDS – 0.0%(d) | ||||||||
Independent Power and Renewable
Electricity Producers – 0.0%(d) |
||||||||
NTPC
Ltd. |
INR 49,126 | $ | 9,152 | |||||
Number of Rights |
||||||||
RIGHTS – 0.0%(d) | ||||||||
Airlines – 0.0%(d) | ||||||||
Jin
Air Co. Ltd., |
75 | 257 | ||||||
Banks – 0.0%(d) | ||||||||
Itau CorpBanca Chile SA, expiring 11/2/2021, price 3.79 CLP* |
914,090 | 1 | ||||||
Biotechnology – 0.0%(d) | ||||||||
GeneOne Life Science, Inc., expiring 11/25/2021, price 23,500.00 KRW* |
317 | 1,004 | ||||||
Electrical Equipment – 0.0%(d) | ||||||||
Ta Ya Electric Wire & Cable, expiring 11/10/2021, price 21.00 TWD* (c) |
1,890 | 255 | ||||||
Oil, Gas & Consumable Fuels – 0.0%(d) | ||||||||
Ultrapar Participacoes SA, expiring 11/3/2021, price 94.10 BRL* (c) |
1,140 | 2 | ||||||
Pharmaceuticals – 0.0%(d) | ||||||||
Enzychem Lifesciences Corp., expiring 12/17/2021, price 56,900.00 KRW* (c) |
128 | 1,095 | ||||||
Total
Rights (Cost $6) |
|
2,614 |
Investments | Number of Warrants |
Value | ||||||
WARRANTS – 0.0%(d) | ||||||||
Real Estate Management & Development – 0.0%(d) | ||||||||
MBK PCL, expiring 10/25/2022, price 1.00 THB* (c) |
2,333 | $ | 773 | |||||
Road & Rail – 0.0% | ||||||||
BTS Group Holdings PCL, expiring 12/31/2025, price 14.900000 THB* ‡ (c) |
20,608 | – | ||||||
BTS Group Holdings PCL, expiring 12/31/2025, price 11.900000 THB* ‡ (c) |
10,304 | – | ||||||
Total Warrants
(Cost $–) |
773 | |||||||
Principal Amount |
||||||||
SECURITIES LENDING REINVESTMENTS(e) – 0.8% | ||||||||
REPURCHASE AGREEMENTS – 0.8% | ||||||||
Citigroup
Global Markets, Inc., 0.05%, dated 10/31/2021, due 11/1/2021, repurchase
price $2,781,582, collateralized by various U.S. Treasury Securities,
ranging from 0.75% –4.63%, maturing 2/15/2040 –2/15/2042; total
market value $2,806,675 |
$ | 2,781,579 | 2,781,579 | |||||
Total
Investments – 100.3% (Cost $276,420,693) |
|
335,276,724 | ||||||
Liabilities in excess of other assets – (0.3%) |
|
(904,729 | ) | |||||
NET ASSETS – 100.0% |
|
334,371,995 |
* |
Non-income producing security. |
^ |
Security subject to restrictions on resale. |
‡ |
Value determined using significant unobservable inputs. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 265 |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
(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. |
(b) |
The security or a portion of this security is on loan at October 31, 2021. The total value of securities on loan at October 31, 2021 was $11,156,681, collateralized in the form of cash with a value of $2,781,579 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $4,007,396 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.88%, and maturity dates ranging from November 4, 2021 – August 15, 2051 and $5,426,821 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from November 17, 2021 – June 30, 2120; a total value of $12,215,796. |
(c) |
Security fair valued as of October 31, 2021 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at October 31, 2021 amounted to $1,451,357, which represents approximately 0.43% of net assets of the Fund. |
(d) |
Represents less than 0.05% of net assets. |
(e) |
The security was purchased with cash collateral held from securities on loan at October 31, 2021. The total value of securities purchased was $2,781,579. |
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, 2021, 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 |
$ | 81,703,247 | ||
Aggregate gross unrealized depreciation |
(26,739,743 | ) | ||
Net unrealized appreciation |
$ | 54,963,504 | ||
Federal income tax cost |
$ | 280,273,085 |
Futures Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following open futures contracts as of October 31, 2021:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Depreciation* |
||||||||||||||||
Long Contracts |
|
|||||||||||||||||||
MSCI Emerging Markets E-Mini Index |
48 | 12/17/2021 | USD | $ | 3,028,800 | $ | (49,371 | ) |
* |
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.
266 | FLEXSHARES ANNUAL REPORT |
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Forward Foreign Currency Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following outstanding contracts as of October 31, 2021:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) |
||||||||||||||||||||
HKD |
3,300,000 | Citibank NA | USD | 424,009 | 12/15/2021 | $ | 258 | |||||||||||||||||
KRW* |
364,610,000 | Citibank NA | USD | 306,960 | 12/15/2021 | 4,740 | ||||||||||||||||||
USD |
63,986 | Goldman Sachs & Co. | BRL* | 339,553 | 12/15/2021 | 4,292 | ||||||||||||||||||
USD |
1,254,837 | Citibank NA | HKD | 9,756,137 | 12/15/2021 | 532 | ||||||||||||||||||
USD |
76,582 | Citibank NA | INR* | 5,688,500 | 12/15/2021 | 995 | ||||||||||||||||||
USD |
263,446 | Goldman Sachs & Co. | KRW* | 307,426,590 | 12/15/2021 | 631 | ||||||||||||||||||
USD |
31,750 | Toronto-Dominion Bank (The) | TWD* | 876,120 | 12/15/2021 | 241 | ||||||||||||||||||
USD |
11,773 | Morgan Stanley | ZAR | 170,000 | 12/15/2021 | 650 | ||||||||||||||||||
ZAR |
1,500,000 | JPMorgan Chase Bank | USD | 97,930 | 12/15/2021 | 220 | ||||||||||||||||||
Total unrealized appreciation |
|
$ | 12,559 | |||||||||||||||||||||
USD |
82,161 | Goldman Sachs & Co. | RUB | * | 6,123,045 | 12/15/2021 | $ | (3,323 | ) | |||||||||||||||
Total unrealized depreciation |
|
$ | (3,323 | ) | ||||||||||||||||||||
Net unrealized appreciation |
|
$ | 9,236 |
* |
Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
BRL – Brazilian Real
HKD – Hong Kong Dollar
INR – Indian Rupee
KRW – Korean Won
RUB – Russian Ruble
TWD – Taiwan Dollar
USD – US Dollar
ZAR – South African Rand
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 267 |
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, 2021:
Brazil |
3.9 | % | ||
Chile |
0.6 | |||
China |
28.2 | |||
Colombia |
0.6 | |||
Czech Republic |
0.2 | |||
Egypt |
0.5 | |||
Greece |
0.3 | |||
Hungary |
0.3 | |||
India |
11.1 | |||
Indonesia |
1.8 | |||
Kuwait |
0.9 | |||
Malaysia |
2.3 | |||
Mexico |
2.3 | |||
Pakistan |
0.5 | |||
Peru |
0.2 | |||
Philippines |
0.9 | |||
Qatar |
0.8 | |||
Russia |
4.0 | |||
Saudi Arabia |
2.1 | |||
South Africa |
4.9 | |||
South Korea |
15.2 | |||
Taiwan |
14.0 | |||
Thailand |
1.8 | |||
Turkey |
1.1 | |||
United Arab Emirates |
1.0 | |||
Other1 |
0.5 | |||
100.0 | % |
1 |
Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
Security Type | % of Net Assets | |||
Common Stocks |
99.5 | % | ||
Corporate Bonds |
0.0 | † | ||
Rights |
0.0 | † | ||
Warrants |
0.0 | † | ||
Securities Lending Reinvestments |
0.8 | |||
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.
268 | FLEXSHARES ANNUAL REPORT |
Schedule of Investments
FlexShares® US Quality Large Cap Index Fund
October 31, 2021
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.6% | ||||||||
Aerospace & Defense – 0.3% | ||||||||
Lockheed Martin Corp. |
920 | $ | 305,735 | |||||
Textron, Inc. |
805 | 59,449 | ||||||
365,184 | ||||||||
Air Freight & Logistics – 1.2% | ||||||||
Expeditors International of Washington, Inc. |
6,095 | 751,270 | ||||||
United Parcel Service, Inc., Class B |
4,945 | 1,055,609 | ||||||
1,806,879 | ||||||||
Automobiles – 1.4% | ||||||||
Ford Motor Co.* |
19,665 | 335,878 | ||||||
Tesla, Inc.* |
1,495 | 1,665,430 | ||||||
2,001,308 | ||||||||
Banks – 4.4% | ||||||||
Bank of America Corp. |
20,930 | 1,000,035 | ||||||
Citigroup, Inc. |
28,635 | 1,980,397 | ||||||
Citizens Financial Group, Inc. |
14,720 | 697,434 | ||||||
JPMorgan Chase & Co. |
690 | 117,224 | ||||||
Wells Fargo & Co. |
51,060 | 2,612,229 | ||||||
6,407,319 | ||||||||
Beverages – 0.3% | ||||||||
Monster Beverage Corp.* |
4,830 | 410,550 | ||||||
Biotechnology – 1.7% | ||||||||
AbbVie, Inc. |
— | (a) | 46 | |||||
Amgen, Inc. |
7,475 | 1,547,101 | ||||||
Gilead Sciences, Inc. |
3,335 | 216,375 | ||||||
Moderna, Inc.* |
1,380 | 476,390 | ||||||
Regeneron Pharmaceuticals, Inc.* |
43 | 27,517 | ||||||
Vertex Pharmaceuticals, Inc.* |
920 | 170,136 | ||||||
2,437,565 | ||||||||
Building Products – 1.1% | ||||||||
Lennox International, Inc. |
1,265 | 378,589 | ||||||
Masco Corp. |
10,005 | 655,828 | ||||||
Trane Technologies plc |
3,450 | 624,208 | ||||||
1,658,625 |
Investments | Shares | Value | ||||||
Capital Markets – 1.8% | ||||||||
Ameriprise Financial, Inc. |
345 | $ | 104,235 | |||||
Bank of New York Mellon Corp. (The) |
13,570 | 803,344 | ||||||
Goldman Sachs Group, Inc. (The) |
805 | 332,747 | ||||||
Morgan Stanley |
13,570 | 1,394,724 | ||||||
2,635,050 | ||||||||
Chemicals – 1.0% | ||||||||
Dow, Inc. |
12,880 | 720,894 | ||||||
DuPont de Nemours, Inc. |
11,040 | 768,384 | ||||||
1,489,278 | ||||||||
Communications Equipment – 1.6% | ||||||||
Cisco Systems, Inc. |
40,710 | 2,278,539 | ||||||
Consumer Finance – 2.3% | ||||||||
Ally Financial, Inc. |
4,025 | 192,153 | ||||||
American Express Co. |
2,760 | 479,633 | ||||||
Capital One Financial Corp. |
7,935 | 1,198,423 | ||||||
Discover Financial Services |
6,555 | 742,813 | ||||||
Synchrony Financial |
16,215 | 753,187 | ||||||
3,366,209 | ||||||||
Distributors – 0.6% | ||||||||
LKQ Corp.* |
805 | 44,339 | ||||||
Pool Corp. |
1,610 | 829,408 | ||||||
873,747 | ||||||||
Diversified Financial Services – 1.6% | ||||||||
Berkshire Hathaway, Inc., Class B* |
7,935 | 2,277,424 | ||||||
Diversified Telecommunication Services – 0.7% | ||||||||
AT&T, Inc. |
20,470 | 517,072 | ||||||
Verizon Communications, Inc. |
9,315 | 493,602 | ||||||
1,010,674 | ||||||||
Electric Utilities – 2.1% | ||||||||
Duke Energy Corp. |
2,185 | 222,892 | ||||||
Evergy, Inc. |
10,925 | 696,469 | ||||||
Exelon Corp. |
17,365 | 923,644 | ||||||
Southern Co. (The) |
18,285 | 1,139,521 | ||||||
2,982,526 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 269 |
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – 0.7% | ||||||||
Eaton Corp. plc |
2,185 | $ | 360,001 | |||||
Emerson Electric Co. |
1,265 | 122,718 | ||||||
Generac Holdings, Inc.* |
1,035 | 516,009 | ||||||
998,728 | ||||||||
Energy Equipment & Services – 0.2% | ||||||||
Schlumberger NV |
8,510 | 274,533 | ||||||
Entertainment – 1.4% | ||||||||
Activision Blizzard, Inc. |
13,225 | 1,034,063 | ||||||
Electronic Arts, Inc. |
5,175 | 725,794 | ||||||
Netflix, Inc.* |
284 | 196,048 | ||||||
1,955,905 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.7% | ||||||||
Essex Property Trust, Inc. |
115 | 39,092 | ||||||
Iron Mountain, Inc. |
16,215 | 740,052 | ||||||
Mid-America Apartment Communities, Inc. |
230 | 46,968 | ||||||
Public Storage |
2,760 | 916,817 | ||||||
Weyerhaeuser Co. |
19,665 | 702,434 | ||||||
2,445,363 | ||||||||
Food & Staples Retailing – 0.3% | ||||||||
Walmart, Inc. |
2,530 | 378,033 | ||||||
Food Products – 0.7% | ||||||||
Campbell Soup Co. |
4,485 | 179,176 | ||||||
General Mills, Inc. |
2,990 | 184,782 | ||||||
Hershey Co. (The) |
1,495 | 262,148 | ||||||
Kraft Heinz Co. (The) |
9,200 | 330,188 | ||||||
956,294 | ||||||||
Health Care Equipment & Supplies – 1.6% | ||||||||
Abbott Laboratories |
2,070 | 266,803 | ||||||
Danaher Corp. |
460 | 143,414 | ||||||
Hologic, Inc.* |
4,830 | 354,087 | ||||||
IDEXX Laboratories, Inc.* |
1,495 | 995,879 | ||||||
ResMed, Inc. |
2,070 | 544,224 | ||||||
2,304,407 | ||||||||
Health Care Providers & Services – 3.5% | ||||||||
Anthem, Inc. |
575 | 250,200 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Cardinal Health, Inc. |
8,855 | $ | 423,357 | |||||
Cigna Corp. |
345 | 73,695 | ||||||
DaVita, Inc.* |
2,990 | 308,688 | ||||||
HCA Healthcare, Inc. |
4,715 | 1,180,919 | ||||||
Laboratory Corp. of America Holdings* |
2,645 | 759,168 | ||||||
McKesson Corp. |
3,795 | 788,905 | ||||||
UnitedHealth Group, Inc. |
2,645 | 1,217,943 | ||||||
5,002,875 | ||||||||
Health Care Technology – 0.5% | ||||||||
Cerner Corp. |
8,280 | 615,121 | ||||||
Veeva Systems, Inc., Class A* |
115 | 36,456 | ||||||
651,577 | ||||||||
Hotels, Restaurants & Leisure – 0.3% | ||||||||
Yum! Brands, Inc. |
2,990 | 373,571 | ||||||
Household Durables – 0.9% | ||||||||
Lennar Corp., Class A |
5,520 | 551,614 | ||||||
PulteGroup, Inc. |
12,420 | 597,153 | ||||||
Whirlpool Corp. |
1,035 | 218,209 | ||||||
1,366,976 | ||||||||
Household Products – 2.2% | ||||||||
Colgate-Palmolive Co. |
12,995 | 990,089 | ||||||
Procter & Gamble Co. (The) |
15,525 | 2,219,920 | ||||||
3,210,009 | ||||||||
Independent Power and Renewable Electricity Producers – 0.5% |
||||||||
AES Corp. (The) |
31,625 | 794,736 | ||||||
Industrial Conglomerates – 0.4% | ||||||||
Honeywell International, Inc. |
2,415 | 527,967 | ||||||
Insurance – 2.2% | ||||||||
Aflac, Inc. |
5,405 | 290,086 | ||||||
Allstate Corp. (The) |
5,865 | 725,325 | ||||||
American International Group, Inc. |
14,030 | 829,033 | ||||||
MetLife, Inc. |
13,340 | 837,752 | ||||||
Prudential Financial, Inc. |
4,025 | 442,951 | ||||||
3,125,147 |
See Accompanying Notes to the Financial Statements.
270 | FLEXSHARES ANNUAL REPORT |
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Interactive Media & Services – 8.7% | ||||||||
Alphabet, Inc., Class A* |
1,693 | $ | 5,012,839 | |||||
Alphabet, Inc., Class C* |
1,610 | 4,774,310 | ||||||
Meta Platforms, Inc., Class A* |
8,740 | 2,828,002 | ||||||
12,615,151 | ||||||||
Internet & Direct Marketing Retail – 3.0% | ||||||||
Amazon.com, Inc.* |
953 | 3,213,925 | ||||||
eBay, Inc. |
11,040 | 846,989 | ||||||
Etsy, Inc.* (b) |
1,265 | 317,123 | ||||||
4,378,037 | ||||||||
IT Services – 4.2% | ||||||||
Accenture plc, Class A |
3,910 | 1,402,869 | ||||||
Cognizant Technology Solutions Corp., Class A |
5,175 | 404,116 | ||||||
Gartner, Inc.* |
2,070 | 687,054 | ||||||
Jack Henry & Associates, Inc. |
2,760 | 459,485 | ||||||
Mastercard, Inc., Class A |
1,495 | 501,602 | ||||||
Paychex, Inc. |
1,955 | 241,012 | ||||||
Square, Inc., Class A* (b) |
460 | 117,070 | ||||||
Visa, Inc., Class A(b) |
10,925 | 2,313,587 | ||||||
6,126,795 | ||||||||
Life Sciences Tools & Services – 1.1% | ||||||||
ICON plc* |
345 | 98,936 | ||||||
Mettler-Toledo International, Inc.* |
529 | 783,385 | ||||||
Waters Corp.* |
1,955 | 718,560 | ||||||
1,600,881 | ||||||||
Machinery – 1.4% | ||||||||
Dover Corp. |
460 | 77,777 | ||||||
Illinois Tool Works, Inc. |
5,290 | 1,205,432 | ||||||
Parker-Hannifin Corp. |
2,530 | 750,373 | ||||||
2,033,582 | ||||||||
Media – 1.9% | ||||||||
Comcast Corp., Class A |
7,820 | 402,183 | ||||||
Discovery, Inc., Class A* (b) |
24,610 | 576,858 | ||||||
Discovery, Inc., Class C* (b) |
12,995 | 293,167 | ||||||
DISH Network Corp., Class A* |
3,105 | 127,522 | ||||||
Fox Corp., Class A |
1,265 | 50,271 | ||||||
Interpublic Group of Cos., Inc. (The) |
20,585 | 752,794 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
Omnicom Group, Inc. |
7,590 | $ | 516,727 | |||||
2,719,522 | ||||||||
Metals & Mining – 0.8% | ||||||||
Freeport-McMoRan, Inc. |
10,810 | 407,753 | ||||||
Newmont Corp. |
13,455 | 726,570 | ||||||
1,134,323 | ||||||||
Multiline Retail – 1.3% | ||||||||
Target Corp. |
7,245 | 1,880,947 | ||||||
Multi-Utilities – 0.7% | ||||||||
DTE Energy Co. |
920 | 104,282 | ||||||
Public Service Enterprise Group, Inc. |
12,075 | 770,385 | ||||||
WEC Energy Group, Inc. |
1,380 | 124,283 | ||||||
998,950 | ||||||||
Oil, Gas & Consumable Fuels – 1.6% | ||||||||
EOG Resources, Inc. |
12,880 | 1,190,885 | ||||||
Kinder Morgan, Inc. |
31,280 | 523,940 | ||||||
Occidental Petroleum Corp. |
19,780 | 663,223 | ||||||
2,378,048 | ||||||||
Pharmaceuticals – 4.8% | ||||||||
Eli Lilly and Co. |
9,315 | 2,373,089 | ||||||
Johnson & Johnson |
17,940 | 2,922,067 | ||||||
Pfizer, Inc. |
37,605 | 1,644,843 | ||||||
6,939,999 | ||||||||
Real Estate Management & Development – 0.6% | ||||||||
CBRE Group, Inc., Class A* |
8,510 | 885,721 | ||||||
Road & Rail – 0.5% | ||||||||
Old Dominion Freight Line, Inc. |
2,070 | 706,595 | ||||||
Semiconductors & Semiconductor Equipment – 5.5% | ||||||||
Applied Materials, Inc. |
6,210 | 848,597 | ||||||
Broadcom, Inc. |
1,725 | 917,131 | ||||||
Intel Corp. |
22,310 | 1,093,190 | ||||||
KLA Corp. |
1,840 | 685,878 | ||||||
Lam Research Corp. |
2,070 | 1,166,590 | ||||||
Microchip Technology, Inc. |
690 | 51,122 | ||||||
NVIDIA Corp. |
2,185 | 558,639 | ||||||
QUALCOMM, Inc. |
3,105 | 413,089 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 271 |
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Texas Instruments, Inc. |
11,730 | $ | 2,199,140 | |||||
7,933,376 | ||||||||
Software – 11.7% | ||||||||
Adobe, Inc.* |
4,255 | 2,767,282 | ||||||
Autodesk, Inc.* |
1,265 | 401,776 | ||||||
Check Point Software Technologies Ltd.* |
5,060 | 605,176 | ||||||
Fair Isaac Corp.* |
575 | 228,965 | ||||||
Fortinet, Inc.* |
1,955 | 657,545 | ||||||
Intuit, Inc. |
4,025 | 2,519,610 | ||||||
Microsoft Corp. |
20,585 | 6,826,398 | ||||||
Oracle Corp. |
25,990 | 2,493,480 | ||||||
SS&C Technologies Holdings, Inc. |
345 | 27,417 | ||||||
Zoom Video Communications, Inc., Class A* |
1,380 | 379,017 | ||||||
16,906,666 | ||||||||
Specialty Retail – 2.8% | ||||||||
AutoZone, Inc.* |
460 | 821,027 | ||||||
Bath & Body Works, Inc. |
5,980 | 413,158 | ||||||
Best Buy Co., Inc. |
3,910 | 477,958 | ||||||
Home Depot, Inc. (The) |
3,565 | 1,325,253 | ||||||
Lowe’s Cos., Inc. |
4,255 | 994,904 | ||||||
4,032,300 | ||||||||
Technology Hardware, Storage & Peripherals – 7.6% | ||||||||
Apple, Inc. |
69,460 | 10,405,108 | ||||||
HP, Inc. |
14,375 | 435,994 | ||||||
NetApp, Inc. |
1,150 | 102,695 | ||||||
Seagate Technology Holdings plc |
920 | 81,944 | ||||||
11,025,741 | ||||||||
Tobacco – 0.7% | ||||||||
Altria Group, Inc. |
4,600 | 202,906 | ||||||
Philip Morris International, Inc. |
9,315 | 880,640 | ||||||
1,083,546 | ||||||||
Trading Companies & Distributors – 0.5% | ||||||||
United Rentals, Inc.* |
1,035 | 392,379 | ||||||
WW Grainger, Inc. |
690 | 319,546 | ||||||
711,925 | ||||||||
Total
Common Stocks (Cost $111,180,900) |
|
142,459,103 |
Investments | Principal Amount |
Value ($) | ||||||
SECURITIES LENDING REINVESTMENTS(c) – 0.1% | ||||||||
REPURCHASE AGREEMENTS – 0.1% | ||||||||
Citigroup
Global Markets, Inc., 0.05%, dated 10/31/2021, due 11/1/2021, repurchase
price $109,616, collateralized by various U.S. Treasury Securities,
ranging from 0.75% – 4.63%, maturing 2/15/2040 – 2/15/2042; total market
value $110,605 |
$ | 109,616 | $ | 109,616 | ||||
Total
Investments – 98.7% (Cost $111,290,516) |
|
142,568,719 | ||||||
Other assets less liabilities – 1.3% |
|
1,906,530 | ||||||
NET ASSETS – 100.0% |
|
$ | 144,475,249 |
* |
Non-income producing security. |
(a) |
Amount represents less than one share. |
(b) |
The security or a portion of this security is on loan at October 31, 2021. The total value of securities on loan at October 31, 2021 was $3,078,424, collateralized in the form of cash with a value of $109,616 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments and $3,031,300 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.25%, and maturity dates ranging from November 23, 2021 – February 15, 2051; a total value of $3,140,916. |
(c) |
The security was purchased with cash collateral held from securities on loan at October 31, 2021. The total value of securities purchased was $109,616. |
Percentages shown are based on Net Assets.
As of October 31, 2021, 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 |
$ | 32,899,365 | ||
Aggregate gross unrealized depreciation |
(1,626,181 | ) | ||
Net unrealized appreciation |
$ | 31,273,184 | ||
Federal income tax cost |
$ | 111,342,358 |
See Accompanying Notes to the Financial Statements.
272 | FLEXSHARES ANNUAL REPORT |
FlexShares® US Quality Large Cap Index Fund (cont.)
Futures Contracts
FlexShares® US Quality Large Cap Index Fund had the following open futures contracts as of October 31, 2021:
Number of Contracts |
Expiration Date |
Trading Currency |
Notional Amount |
Value
and Unrealized Appreciation* |
||||||||||||||||
Long Contracts |
|
|||||||||||||||||||
S&P 500 E-Mini Index |
8 | 12/17/2021 | USD | $ | 1,838,800 | $ | 46,823 |
* |
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 |
98.6 | % | ||
Securities Lending Reinvestments |
0.1 | |||
Others(1) |
1.3 | |||
100.0 | % |
(1) |
Includes any other net assets/(liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 273 |
Schedule of Investments
FlexShares® STOXX® US ESG Select Index Fund
October 31, 2021
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.3% | ||||||||
Air Freight & Logistics – 0.5% | ||||||||
CH Robinson Worldwide, Inc. |
1,360 | $ | 131,906 | |||||
FedEx Corp. |
1,428 | 336,337 | ||||||
United Parcel Service, Inc., Class B |
2,380 | 508,059 | ||||||
976,302 | ||||||||
Auto Components – 0.1% | ||||||||
Aptiv plc* (a) |
952 | 164,591 | ||||||
Automobiles – 5.2% | ||||||||
Ford Motor Co.* |
12,580 | 214,866 | ||||||
General Motors Co.* |
14,416 | 784,663 | ||||||
Tesla, Inc.* |
8,092 | 9,014,488 | ||||||
10,014,017 | ||||||||
Banks – 6.3% | ||||||||
Bank of America Corp. |
73,372 | 3,505,714 | ||||||
Citigroup, Inc. |
20,740 | 1,434,378 | ||||||
Fifth Third Bancorp |
5,508 | 239,763 | ||||||
Huntington Bancshares, Inc. |
9,724 | 153,056 | ||||||
JPMorgan Chase & Co. |
25,432 | 4,320,643 | ||||||
KeyCorp |
9,248 | 215,201 | ||||||
PNC Financial Services Group, Inc. (The) |
3,400 | 717,502 | ||||||
Regions Financial Corp. |
6,460 | 152,973 | ||||||
Truist Financial Corp. |
9,384 | 595,603 | ||||||
US Bancorp |
13,328 | 804,611 | ||||||
12,139,444 | ||||||||
Beverages – 2.0% | ||||||||
Coca-Cola Co. (The) |
27,200 | 1,533,264 | ||||||
Coca-Cola Europacific Partners plc |
1,972 | 103,826 | ||||||
Keurig Dr Pepper, Inc. |
1,836 | 66,261 | ||||||
PepsiCo, Inc. |
13,328 | 2,153,805 | ||||||
3,857,156 | ||||||||
Biotechnology – 1.1% | ||||||||
AbbVie, Inc. |
8,840 | 1,013,683 | ||||||
Gilead Sciences, Inc. |
4,352 | 282,358 | ||||||
Regeneron Pharmaceuticals, Inc.* |
476 | 304,611 | ||||||
Vertex Pharmaceuticals, Inc.* |
2,584 | 477,859 | ||||||
2,078,511 |
Investments | Shares | Value | ||||||
Building Products – 0.4% | ||||||||
Johnson Controls International plc |
5,372 | $ | 394,144 | |||||
Trane Technologies plc |
1,700 | 307,581 | ||||||
701,725 | ||||||||
Capital Markets – 3.3% | ||||||||
Bank of New York Mellon Corp. (The) |
3,060 | 181,152 | ||||||
BlackRock, Inc. |
1,428 | 1,347,261 | ||||||
CME Group, Inc. |
1,292 | 284,951 | ||||||
FactSet Research Systems, Inc. |
136 | 60,369 | ||||||
Goldman Sachs Group, Inc. (The) |
3,264 | 1,349,174 | ||||||
Moody’s Corp. |
1,020 | 412,233 | ||||||
Morgan Stanley |
14,008 | 1,439,742 | ||||||
Raymond James Financial, Inc. |
1,122 | 110,618 | ||||||
S&P Global, Inc. |
1,972 | 935,044 | ||||||
State Street Corp. |
3,060 | 301,563 | ||||||
6,422,107 | ||||||||
Chemicals – 1.2% | ||||||||
Air Products and Chemicals, Inc. |
1,156 | 346,580 | ||||||
Albemarle Corp. |
340 | 85,160 | ||||||
Celanese Corp. |
1,224 | 197,688 | ||||||
Corteva, Inc. |
2,652 | 114,434 | ||||||
Ecolab, Inc. |
2,380 | 528,884 | ||||||
International Flavors & Fragrances, Inc. |
1,632 | 240,638 | ||||||
PPG Industries, Inc. |
1,224 | 196,538 | ||||||
Sherwin-Williams Co. (The) |
1,972 | 624,355 | ||||||
2,334,277 | ||||||||
Commercial Services & Supplies – 0.2% | ||||||||
Cintas Corp. |
952 | 412,311 | ||||||
Communications Equipment – 0.8% | ||||||||
Arista Networks, Inc.* |
68 | 27,859 | ||||||
Cisco Systems, Inc. |
27,472 | 1,537,608 | ||||||
1,565,467 | ||||||||
Consumer Finance – 0.7% | ||||||||
American Express Co. |
3,196 | 555,401 | ||||||
Capital One Financial Corp. |
3,400 | 513,502 | ||||||
Synchrony Financial |
5,236 | 243,212 | ||||||
1,312,115 |
See Accompanying Notes to the Financial Statements.
274 | FLEXSHARES ANNUAL REPORT |
FlexShares® STOXX® US ESG Select Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Containers & Packaging – 0.3% | ||||||||
Amcor plc |
4,692 | $ | 56,632 | |||||
Ball Corp. |
2,448 | 223,943 | ||||||
International Paper Co. |
1,632 | 81,062 | ||||||
Packaging Corp. of America |
816 | 112,094 | ||||||
Westrock Co. |
1,632 | 78,499 | ||||||
552,230 | ||||||||
Distributors – 0.1% | ||||||||
LKQ Corp.* |
204 | 11,236 | ||||||
Pool Corp. |
340 | 175,155 | ||||||
186,391 | ||||||||
Diversified Telecommunication Services – 1.6% | ||||||||
AT&T, Inc. |
47,396 | 1,197,223 | ||||||
Lumen Technologies, Inc.(a) |
7,888 | 93,552 | ||||||
Verizon Communications, Inc. |
34,136 | 1,808,866 | ||||||
3,099,641 | ||||||||
Electric Utilities – 0.9% | ||||||||
Alliant Energy Corp. |
2,176 | 123,096 | ||||||
Duke Energy Corp. |
5,100 | 520,251 | ||||||
Edison International |
2,312 | 145,494 | ||||||
Entergy Corp. |
1,360 | 140,107 | ||||||
Eversource Energy |
2,584 | 219,382 | ||||||
FirstEnergy Corp. |
4,420 | 170,303 | ||||||
NextEra Energy, Inc. |
5,984 | 510,615 | ||||||
1,829,248 | ||||||||
Electrical Equipment – 0.8% | ||||||||
AMETEK, Inc. |
1,768 | 234,083 | ||||||
Eaton Corp. plc |
3,060 | 504,166 | ||||||
Emerson Electric Co. |
6,052 | 587,104 | ||||||
Rockwell Automation, Inc. |
952 | 304,069 | ||||||
1,629,422 | ||||||||
Electronic Equipment, Instruments & Components – 0.5% | ||||||||
Amphenol Corp., Class A |
2,448 | 187,933 | ||||||
Keysight Technologies, Inc.* |
1,020 | 183,620 | ||||||
TE Connectivity Ltd. |
1,904 | 277,984 | ||||||
Teledyne Technologies, Inc.* |
408 | 183,282 | ||||||
Trimble, Inc.* |
1,496 | 130,706 | ||||||
963,525 |
Investments | Shares | Value | ||||||
Energy Equipment & Services – 0.4% | ||||||||
Baker Hughes Co. |
3,740 | $ | 93,799 | |||||
Halliburton Co. |
6,868 | 171,632 | ||||||
Schlumberger NV |
14,824 | 478,222 | ||||||
743,653 | ||||||||
Entertainment – 1.3% | ||||||||
Walt Disney Co. (The)* |
14,960 | 2,529,287 | ||||||
Equity Real Estate Investment Trusts (REITs) – 2.5% | ||||||||
American Tower Corp. |
3,672 | 1,035,394 | ||||||
AvalonBay Communities, Inc. |
612 | 144,848 | ||||||
Digital Realty Trust, Inc. |
2,244 | 354,126 | ||||||
Duke Realty Corp. |
408 | 22,946 | ||||||
Equinix, Inc.(a) |
748 | 626,128 | ||||||
Equity LifeStyle Properties, Inc. |
1,904 | 160,907 | ||||||
Essex Property Trust, Inc. |
340 | 115,576 | ||||||
Healthpeak Properties, Inc. |
5,916 | 210,077 | ||||||
Host Hotels & Resorts, Inc.* (a) |
5,236 | 88,122 | ||||||
Invitation Homes, Inc. |
1,768 | 72,930 | ||||||
Iron Mountain, Inc. |
2,108 | 96,209 | ||||||
Prologis, Inc. |
4,216 | 611,151 | ||||||
Realty Income Corp. |
1,904 | 136,003 | ||||||
Simon Property Group, Inc. |
1,632 | 239,219 | ||||||
UDR, Inc.(a) |
680 | 37,761 | ||||||
Ventas, Inc. |
3,468 | 185,087 | ||||||
Welltower, Inc. |
4,148 | 333,499 | ||||||
Weyerhaeuser Co. |
5,032 | 179,743 | ||||||
WP Carey, Inc.(a) |
2,244 | 173,035 | ||||||
4,822,761 | ||||||||
Food & Staples Retailing – 0.3% | ||||||||
Kroger Co. (The) |
5,576 | 223,151 | ||||||
Sysco Corp. |
1,904 | 146,418 | ||||||
Walgreens Boots Alliance, Inc. |
4,488 | 211,026 | ||||||
580,595 | ||||||||
Food Products – 0.5% | ||||||||
Archer-Daniels-Midland Co. |
2,380 | 152,891 | ||||||
General Mills, Inc. |
3,468 | 214,323 | ||||||
Hershey Co. (The) |
612 | 107,314 | ||||||
Hormel Foods Corp. |
1,972 | 83,455 | ||||||
J M Smucker Co. (The) |
1,020 | 125,317 | ||||||
Kellogg Co. |
2,040 | 125,052 | ||||||
McCormick & Co., Inc. (Non-Voting) |
680 | 54,557 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 275 |
FlexShares® STOXX® US ESG Select Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Tyson Foods, Inc., Class A |
1,292 | $ | 103,321 | |||||
966,230 | ||||||||
Health Care Equipment & Supplies – 3.6% | ||||||||
Abbott Laboratories |
14,552 | 1,875,607 | ||||||
Align Technology, Inc.* |
204 | 127,371 | ||||||
Baxter International, Inc. |
2,244 | 177,186 | ||||||
Becton Dickinson and Co. |
2,380 | 570,224 | ||||||
Boston Scientific Corp.* |
11,424 | 492,717 | ||||||
Danaher Corp. |
2,380 | 742,013 | ||||||
Edwards Lifesciences Corp.* |
4,352 | 521,457 | ||||||
Hologic, Inc.* |
2,516 | 184,448 | ||||||
IDEXX Laboratories, Inc.* |
408 | 271,785 | ||||||
Insulet Corp.* |
544 | 168,651 | ||||||
Medtronic plc |
7,140 | 855,800 | ||||||
ResMed, Inc. |
1,156 | 303,924 | ||||||
STERIS plc |
340 | 79,472 | ||||||
West Pharmaceutical Services, Inc. |
476 | 204,623 | ||||||
Zimmer Biomet Holdings, Inc. |
1,700 | 243,304 | ||||||
6,818,582 | ||||||||
Health Care Providers & Services – 2.5% | ||||||||
AmerisourceBergen Corp. |
816 | 99,568 | ||||||
Anthem, Inc. |
2,448 | 1,065,198 | ||||||
CVS Health Corp. |
8,636 | 771,022 | ||||||
Humana, Inc. |
748 | 346,444 | ||||||
Laboratory Corp. of America Holdings* |
408 | 117,104 | ||||||
McKesson Corp. |
1,088 | 226,174 | ||||||
UnitedHealth Group, Inc. |
4,556 | 2,097,901 | ||||||
4,723,411 | ||||||||
Health Care Technology – 0.2% | ||||||||
Cerner Corp. |
544 | 40,414 | ||||||
Veeva Systems, Inc., Class A* |
1,292 | 409,577 | ||||||
449,991 | ||||||||
Hotels, Restaurants & Leisure – 1.2% | ||||||||
Booking Holdings, Inc.* |
204 | 493,839 | ||||||
Domino’s Pizza, Inc. |
340 | 166,250 | ||||||
Marriott International, Inc., Class A* |
2,788 | 446,136 | ||||||
MGM Resorts International |
2,720 | 128,275 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Starbucks Corp. |
6,460 | $ | 685,212 | |||||
Wynn Resorts Ltd.* (a) |
68 | 6,107 | ||||||
Yum! Brands, Inc. |
2,312 | 288,861 | ||||||
2,214,680 | ||||||||
Household Durables – 0.0%(b) | ||||||||
Whirlpool Corp. |
272 | 57,346 | ||||||
Household Products – 2.3% | ||||||||
Church & Dwight Co., Inc. |
1,700 | 148,512 | ||||||
Clorox Co. (The) |
1,020 | 166,270 | ||||||
Colgate-Palmolive Co. |
6,936 | 528,454 | ||||||
Kimberly-Clark Corp. |
952 | 123,275 | ||||||
Procter & Gamble Co. (The) |
24,004 | 3,432,332 | ||||||
4,398,843 | ||||||||
Independent Power and Renewable Electricity Producers
– 0.0%(b) |
||||||||
AES Corp. (The) |
2,176 | 54,683 | ||||||
Industrial Conglomerates – 1.3% | ||||||||
3M Co. |
5,848 | 1,044,921 | ||||||
General Electric Co. |
10,880 | 1,140,985 | ||||||
Roper Technologies, Inc. |
476 | 232,226 | ||||||
2,418,132 | ||||||||
Insurance – 1.2% | ||||||||
Aflac, Inc. |
5,372 | 288,315 | ||||||
Aon plc, Class A |
1,292 | 413,337 | ||||||
Hartford Financial Services Group, Inc. (The) |
1,632 | 119,022 | ||||||
Loews Corp. |
544 | 30,502 | ||||||
MetLife, Inc. |
5,712 | 358,714 | ||||||
Principal Financial Group, Inc. |
2,176 | 145,988 | ||||||
Progressive Corp. (The) |
5,100 | 483,888 | ||||||
Prudential Financial, Inc. |
1,904 | 209,535 | ||||||
Travelers Cos., Inc. (The) |
1,088 | 175,037 | ||||||
2,224,338 | ||||||||
Interactive Media & Services – 8.4% | ||||||||
Alphabet, Inc., Class C* |
2,788 | 8,267,563 | ||||||
Meta Platforms, Inc., Class A* |
23,732 | 7,678,963 | ||||||
Pinterest, Inc., Class A* |
2,788 | 124,456 | ||||||
Zillow Group, Inc., Class C* (a) |
68 | 7,047 | ||||||
16,078,029 |
See Accompanying Notes to the Financial Statements.
276 | FLEXSHARES ANNUAL REPORT |
FlexShares® STOXX® US ESG Select Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Internet & Direct Marketing Retail – 5.1% | ||||||||
Amazon.com, Inc.* |
2,652 | $ | 8,943,684 | |||||
eBay, Inc. |
5,168 | 396,489 | ||||||
Etsy, Inc.* (a) |
1,020 | 255,704 | ||||||
Farfetch Ltd., Class A* |
3,128 | 122,649 | ||||||
9,718,526 | ||||||||
IT Services – 3.9% | ||||||||
Accenture plc, Class A |
6,460 | 2,317,784 | ||||||
Akamai Technologies, Inc.* |
544 | 57,370 | ||||||
Automatic Data Processing, Inc. |
2,108 | 473,225 | ||||||
Broadridge Financial Solutions, Inc. |
408 | 72,791 | ||||||
Cognizant Technology Solutions Corp., Class A |
4,352 | 339,848 | ||||||
EPAM Systems, Inc.* |
136 | 91,561 | ||||||
Fidelity National Information Services, Inc. |
3,264 | 361,455 | ||||||
Gartner, Inc.* |
408 | 135,419 | ||||||
International Business Machines Corp. |
8,432 | 1,054,843 | ||||||
Mastercard, Inc., Class A |
7,208 | 2,418,428 | ||||||
Wix.com Ltd.* (a) |
476 | 88,517 | ||||||
7,411,241 | ||||||||
Leisure Products – 0.0%(b) | ||||||||
Hasbro, Inc. |
680 | 65,117 | ||||||
Life Sciences Tools & Services – 1.0% | ||||||||
Agilent Technologies, Inc. |
2,108 | 331,989 | ||||||
Bio-Rad Laboratories, Inc., Class A* |
136 | 108,076 | ||||||
Charles River Laboratories International, Inc.* |
204 | 91,531 | ||||||
Illumina, Inc.* |
748 | 310,465 | ||||||
Mettler-Toledo International, Inc.* |
204 | 302,100 | ||||||
Thermo Fisher Scientific, Inc. |
1,292 | 817,926 | ||||||
1,962,087 | ||||||||
Machinery – 1.7% | ||||||||
Caterpillar, Inc. |
5,440 | 1,109,814 | ||||||
Cummins, Inc. |
952 | 228,328 | ||||||
Deere & Co. |
2,244 | 768,144 | ||||||
Graco, Inc. |
952 | 71,571 | ||||||
Illinois Tool Works, Inc. |
1,224 | 278,913 | ||||||
Ingersoll Rand, Inc.* |
884 | 47,524 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Otis Worldwide Corp. |
2,380 | $ | 191,138 | |||||
PACCAR, Inc. |
1,292 | 115,789 | ||||||
Parker-Hannifin Corp. |
680 | 201,681 | ||||||
Stanley Black & Decker, Inc. |
748 | 134,438 | ||||||
Xylem, Inc. |
884 | 115,441 | ||||||
3,262,781 | ||||||||
Media – 1.2% | ||||||||
Comcast Corp., Class A |
38,012 | 1,954,957 | ||||||
Interpublic Group of Cos., Inc. (The) |
2,788 | 101,957 | ||||||
Omnicom Group, Inc. |
2,380 | 162,031 | ||||||
2,218,945 | ||||||||
Metals & Mining – 0.3% | ||||||||
Freeport-McMoRan, Inc. |
7,276 | 274,451 | ||||||
Newmont Corp. |
6,868 | 370,872 | ||||||
645,323 | ||||||||
Multiline Retail – 0.5% | ||||||||
Target Corp. |
3,468 | 900,362 | ||||||
Multi-Utilities – 0.5% | ||||||||
CMS Energy Corp. |
1,904 | 114,906 | ||||||
Dominion Energy, Inc. |
3,264 | 247,835 | ||||||
Public Service Enterprise Group, Inc. |
1,836 | 117,137 | ||||||
Sempra Energy |
3,128 | 399,227 | ||||||
WEC Energy Group, Inc. |
1,768 | 159,226 | ||||||
1,038,331 | ||||||||
Oil, Gas & Consumable Fuels – 2.5% | ||||||||
Chevron Corp. |
18,428 | 2,109,822 | ||||||
ConocoPhillips |
8,772 | 653,426 | ||||||
Exxon Mobil Corp. |
22,304 | 1,437,939 | ||||||
Hess Corp. |
1,360 | 112,295 | ||||||
Occidental Petroleum Corp. |
1,904 | 63,841 | ||||||
Phillips 66 |
4,624 | 345,783 | ||||||
Valero Energy Corp. |
1,632 | 126,203 | ||||||
4,849,309 | ||||||||
Paper & Forest Products – 0.0%(b) | ||||||||
Sylvamo Corp.* |
— | (c) | 10 | |||||
Personal Products – 0.3% | ||||||||
Estee Lauder Cos., Inc. (The), Class A |
1,904 | 617,524 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES ANNUAL REPORT | 277 |
FlexShares® STOXX® US ESG Select Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – 6.0% | ||||||||
Bristol-Myers Squibb Co. |
17,272 | $ | 1,008,685 | |||||
Catalent, Inc.* |
884 | 121,868 | ||||||
Eli Lilly and Co. |
4,488 | 1,143,363 | ||||||
Johnson & Johnson |
26,044 | 4,242,047 | ||||||
Merck & Co., Inc. |
25,364 | 2,233,300 | ||||||
Pfizer, Inc. |
46,376 | 2,028,486 | ||||||
Zoetis, Inc. |
3,060 | 661,572 | ||||||
11,439,321 | ||||||||
Professional Services – 0.1% | ||||||||
Booz Allen Hamilton Holding Corp. |
816 | 70,878 | ||||||
Leidos Holdings, Inc. |
544 | 54,389 | ||||||
125,267 | ||||||||
Real Estate Management & Development – 0.1% | ||||||||
CBRE Group, Inc., Class A* |
2,040 | 212,323 | ||||||
Road & Rail – 0.3% | ||||||||
CSX Corp. |
8,908 | 322,202 | ||||||
JB Hunt Transport Services, Inc. |
748 | 147,498 | ||||||
Lyft, Inc., Class A* |
1,088 | 49,907 | ||||||
519,607 | ||||||||
Semiconductors & Semiconductor Equipment – 4.8% | ||||||||
Analog Devices, Inc. |
1,836 | 318,528 | ||||||
Applied Materials, Inc. |
7,412 | 1,012,850 | ||||||
Broadcom, Inc. |
2,720 | 1,446,142 | ||||||
Intel Corp. |
40,460 | 1,982,540 | ||||||
Lam Research Corp. |
1,156 | 651,487 | ||||||
Microchip Technology, Inc. |
2,720 | 201,525 | ||||||
Micron Technology, Inc. |
11,356 | 784,700 | ||||||
ON Semiconductor Corp.* |
1,360 | 65,375 | ||||||
QUALCOMM, Inc. |
7,004 | 931,812 | ||||||
Texas Instruments, Inc. |
9,180 | 1,721,066 | ||||||
9,116,025 | ||||||||
Software – 9.5% | ||||||||
Adobe, Inc.* |
3,196 | 2,078,550 | ||||||
Autodesk, Inc.* |
2,176 | 691,119 | ||||||
Coupa Software, Inc.* |
272 | 61,934 | ||||||
Crowdstrike Holdings, Inc., Class A* |
1,156 | 325,761 | ||||||
DocuSign, Inc.* |
544 | 151,390 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
Fortinet, Inc.* |
884 | $ | 297,324 | |||||
HubSpot, Inc.* |
340 | 275,478 | ||||||
Intuit, Inc. |
1,428 | 893,914 | ||||||
Microsoft Corp. |
31,348 | 10,395,624 | ||||||
NortonLifeLock, Inc. |
2,448 | 62,302 | ||||||
Oracle Corp. |
16,388 | 1,572,265 | ||||||
salesforce.com, Inc.* |
3,264 | 978,188 | ||||||
Synopsys, Inc.* |
1,088 | 362,500 | ||||||
18,146,349 | ||||||||
Specialty Retail – 3.3% | ||||||||
Advance Auto Parts, Inc. |
136 | 30,671 | ||||||
AutoZone, Inc.* |
68 | 121,369 | ||||||
Best Buy Co., Inc. |
1,088 | 132,997 | ||||||
Burlington Stores, Inc.* |
612 | 169,089 | ||||||
Carvana Co.* (a) |
544 | 164,930 | ||||||
Home Depot, Inc. (The) |
10,608 | 3,943,418 | ||||||
Lowe’s Cos., Inc. |
4,964 | 1,160,683 | ||||||
TJX Cos., Inc. (The) |
7,888 | 516,585 | ||||||
Ulta Beauty, Inc.* |
340 | 124,902 | ||||||
6,364,644 | ||||||||
Technology Hardware, Storage & Peripherals – 5.2% | ||||||||
Apple, Inc. |
60,520 | 9,065,896 | ||||||
Dell Technologies, Inc., Class C* |
1,496 | 164,545 | ||||||
Hewlett Packard Enterprise Co. |
8,364 | 122,533 | ||||||
HP, Inc. |
11,968 | 362,989 | ||||||
NetApp, Inc. |
1,700 | 151,810 | ||||||
Western Digital Corp.* |
2,244 | 117,339 | ||||||
9,985,112 | ||||||||
Textiles, Apparel & Luxury Goods – 0.9% | ||||||||
Lululemon Athletica, Inc.* |
1,156 | 538,708 | ||||||
NIKE, Inc., Class B |
6,732 | 1,126,196 | ||||||
VF Corp. |
204 | 14,867 | ||||||
1,679,771 | ||||||||
Tobacco – 0.2% | ||||||||
Altria Group, Inc. |
7,548 | 332,942 | ||||||
Trading Companies & Distributors – 0.1% | ||||||||
WW Grainger, Inc. |
340 | 157,457 |
See Accompanying Notes to the Financial Statements.
278 | FLEXSHARES ANNUAL REPORT |