Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22555
FlexShares Trust
(Exact name of registrant as specified in charter)
50 South LaSalle Street
Chicago, Illinois 60603
(Address of principal executive offices) (Zip code)
Diana E. McCarthy, Esq.
Drinker Biddle & Reath LLP
One Logan Square, Ste. 2000
Philadelphia, Pennsylvania 19103-6996
(Name and Address of Agent for Service)
with a copy to:
Ann Marie Halter
Craig R. Carberry, Esq.
Northern Trust Investments, Inc.
50 South LaSalle Street
Chicago, Illinois 60603
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: (855) 353-9383
Date of fiscal year end: October 31
Date of reporting period: April 30, 2018
Table of Contents
Item 1. Reports To Stockholders.
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
Table of Contents
FlexShares® Trust
Semiannual Report
April 30, 2018
FlexShares® Morningstar US Market Factor Tilt Index Fund
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund
FlexShares® US Quality Large Cap Index Fund
FlexShares® STOXX® US ESG Impact Index Fund
FlexShares® STOXX® Global ESG Impact Index Fund
FlexShares® Morningstar Global Upstream Natural Resources Index Fund
FlexShares® STOXX® Global Broad Infrastructure Index Fund
FlexShares® Global Quality Real Estate Index Fund
FlexShares® Real Assets Allocation Index Fund
FlexShares® Quality Dividend Index Fund
FlexShares® Quality Dividend Defensive Index Fund
FlexShares® Quality Dividend Dynamic Index Fund
FlexShares® International Quality Dividend Index Fund
FlexShares® International Quality Dividend Defensive Index Fund
FlexShares® International Quality Dividend Dynamic Index Fund
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund
FlexShares® Disciplined Duration MBS Index Fund
FlexShares® Credit-Scored US Corporate Bond Index Fund
FlexShares® Credit-Scored US Long Corporate Bond Index Fund
FlexShares® Ready Access Variable Income Fund
FlexShares® Core Select Bond Fund
Table of Contents
2 | ||||
9 | ||||
16 | ||||
30 | ||||
50 | ||||
50 | ||||
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | 84 | |||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | 130 | |||
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 172 | |||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | 174 | |||
176 | ||||
180 | ||||
186 | ||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | 199 | |||
207 | ||||
214 | ||||
219 | ||||
220 | ||||
227 | ||||
233 | ||||
238 | ||||
FlexShares® International Quality Dividend Defensive Index Fund | 247 | |||
FlexShares® International Quality Dividend Dynamic Index Fund | 254 | |||
260 | ||||
261 | ||||
262 | ||||
266 | ||||
274 | ||||
281 | ||||
289 | ||||
291 | ||||
330 | ||||
334 | ||||
341 |
Table of Contents
FlexShares® Trust
Statements of Assets and Liabilities April 30, 2018 (Unaudited)
FlexShares® Morningstar US Market Factor Tilt Index Fund | FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | 803,772,544 | �� | $ | 927,357,150 | $ | 598,494,549 | $ | — | |||||||
Affiliate securities, at cost | 463,349 | — | — | 8,141,102 | ||||||||||||
Securities Lending Reinvestments, at cost | 114,029,474 | 16,242,330 | 1,262,450 | — | ||||||||||||
|
| |||||||||||||||
Securities, at value | 1,187,760,987 | 1,096,116,542 | 712,781,764 | — | ||||||||||||
Affiliate securities, at value | 794,861 | — | — | 9,196,692 | ||||||||||||
Securities Lending Reinvestments, at value | 114,031,774 | 16,242,330 | 1,262,450 | — | ||||||||||||
Cash | 9,280,095 | 6,092,570 | 2,194,864 | 1,255 | ||||||||||||
Cash segregated at broker* | 999,443 | 834,773 | 553,023 | — | ||||||||||||
Foreign cash† | — | 6,344,267 | 2,926,583 | — | ||||||||||||
Restricted cash** | — | 2,053 | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Due from Custodian | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | 146,677 | 56,433 | 144,961 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 829,049 | 6,139,104 | 648,729 | — | ||||||||||||
Securities lending income | 76,046 | 108,408 | 23,311 | — | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 71,261 | 52,899 | 27,535 | 1,125 | ||||||||||||
Securities sold | 1,150 | — | 231,308 | — | ||||||||||||
Variation margin on futures contracts | — | 804,474 | — | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 1,313,844,666 | 1,132,884,097 | 720,706,000 | 9,344,033 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft | — | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | 261,349 | 17,917 | — | ||||||||||||
Due to brokers | — | — | 2,311 | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 114,036,329 | 16,242,330 | 1,262,450 | — | ||||||||||||
Deferred compensation (Note 7) | 60,843 | 44,086 | 21,999 | 436 | ||||||||||||
Investment advisory fees (Note 4) | 248,425 | 355,091 | 344,902 | 155 | ||||||||||||
Trustee fees (Note 7) | 10,418 | 8,813 | 5,536 | 689 | ||||||||||||
Securities purchased | — | 206 | 142,714 | — | ||||||||||||
Deferred non-US capital gains taxes | — | — | 85,864 | — | ||||||||||||
Due to Authorized Participant | — | 2,053 | — | — | ||||||||||||
Variation margin on futures contracts | 336,638 | — | 192,297 | — | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | 4,500 | 40,000 | 100,000 | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 114,697,153 | 16,953,928 | 2,175,990 | 1,280 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,199,147,513 | $ | 1,115,930,169 | $ | 718,530,010 | $ | 9,342,753 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 824,093,307 | $ | 990,936,145 | $ | 623,112,950 | $ | 8,086,916 | ||||||||
Undistributed (accumulated) net investment income (loss) | 2,890,757 | 1,502,586 | (190,733 | ) | (539 | ) | ||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (11,960,121 | ) | (45,809,840 | ) | (18,462,388 | ) | 55,825 | |||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 384,319,955 | 168,759,392 | 114,203,748 | 1,055,590 | ||||||||||||
Securities lending | 2,300 | — | — | — | ||||||||||||
Futures contracts | (198,685 | ) | 829,978 | (158,236 | ) | — | ||||||||||
Forward foreign currency contracts and foreign currency translations | — | (288,092 | ) | 24,669 | 144,961 | |||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,199,147,513 | $ | 1,115,930,169 | $ | 718,530,010 | $ | 9,342,753 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 10,900,001 | 16,200,001 | 12,000,001 | 325,001 | ||||||||||||
Net Asset Value | $ | 110.01 | $ | 68.88 | $ | 59.88 | $ | 28.75 | ||||||||
† Cost of foreign cash | $ | — | $ | 6,439,588 | $ | 2,934,943 | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
2 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | FlexShares® US Quality Large Cap Index Fund | FlexShares® STOXX® US ESG Impact Index Fund | FlexShares® STOXX® Global ESG Impact Index Fund | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | — | $ | 38,738,982 | $ | 21,661,879 | $ | 62,603,184 | ||||||||
Affiliate securities, at cost | 27,152,133 | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Securities, at value | — | �� | 42,558,734 | 23,266,349 | 65,075,588 | |||||||||||
Affiliate securities, at value | 35,312,316 | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | — | — | — | — | ||||||||||||
Cash | 223,062 | 114,324 | 218,996 | 355,869 | ||||||||||||
Cash segregated at broker* | 26,395 | 28,058 | 20,563 | 111,118 | ||||||||||||
Foreign cash† | 2 | — | — | 371,624 | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Due from Custodian | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 221,530 | — | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | — | 30,947 | 24,275 | 164,648 | ||||||||||||
Securities lending income | — | — | — | — | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 2,098 | 1,348 | 884 | 1,261 | ||||||||||||
Securities sold | — | — | — | — | ||||||||||||
Variation margin on futures contracts | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 35,785,403 | 42,733,411 | 23,531,067 | 66,080,108 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft | — | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | 44,847 | — | — | — | ||||||||||||
Due to brokers | — | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | — | — | — | — | ||||||||||||
Deferred compensation (Note 7) | 1,221 | 597 | 258 | 530 | ||||||||||||
Investment advisory fees (Note 4) | 464 | 10,846 | 6,046 | 22,780 | ||||||||||||
Trustee fees (Note 7) | 877 | 751 | 626 | 731 | ||||||||||||
Securities purchased | — | — | — | — | ||||||||||||
Deferred non-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Variation margin on futures contracts | 12,600 | 7,095 | 3,080 | 16,040 | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | — | 2,500 | 1,400 | 15,000 | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 60,009 | 21,789 | 11,410 | 55,081 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 35,725,394 | $ | 42,711,622 | $ | 23,519,657 | $ | 66,025,027 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 28,445,041 | $ | 39,011,561 | $ | 21,456,012 | $ | 63,297,629 | ||||||||
Undistributed (accumulated) net investment income (loss) | (2,263 | ) | 74,916 | 39,425 | 259,395 | |||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (1,044,572 | ) | (189,740 | ) | 422,834 | 12,205 | ||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 8,160,183 | 3,819,752 | 1,604,470 | 2,472,404 | ||||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | (9,678 | ) | (4,867 | ) | (3,084 | ) | (8,253 | ) | ||||||||
Forward foreign currency contracts and foreign currency translations | 176,683 | — | — | (8,353 | ) | |||||||||||
|
| |||||||||||||||
Net Assets | $ | 35,725,394 | $ | 42,711,622 | $ | 23,519,657 | $ | 66,025,027 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 1,150,001 | 1,275,001 | 375,001 | 700,001 | ||||||||||||
Net Asset Value | $ | 31.07 | $ | 33.50 | $ | 62.72 | $ | 94.32 | ||||||||
† Cost of foreign cash | $ | 2 | $ | — | $ | — | $ | 378,173 |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 3 |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | FlexShares® STOXX® Global Broad Infrastructure Index Fund | FlexShares® Global Quality Real Estate Index Fund | FlexShares® Real Assets Allocation Index Fund | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | 4,759,604,783 | $ | 779,004,227 | $ | 236,196,701 | $ | — | ||||||||
Affiliate securities, at cost | — | — | — | 11,652,909 | ||||||||||||
Securities Lending Reinvestments, at cost | 88,768,738 | 37,862,060 | 3,720,119 | — | ||||||||||||
|
| |||||||||||||||
Securities, at value | 5,546,552,301 | 842,889,241 | 262,959,912 | — | ||||||||||||
Affiliate securities, at value | — | — | — | 11,836,476 | ||||||||||||
Securities Lending Reinvestments, at value | 88,771,443 | 37,861,808 | 3,720,119 | — | ||||||||||||
Cash | 22,454,048 | 2,027,273 | 3,341,872 | 2,533 | ||||||||||||
Cash segregated at broker* | 3,114,120 | 327,055 | 472,109 | — | ||||||||||||
Foreign cash† | 15,239,476 | 2,368,638 | 1,203,502 | — | ||||||||||||
Restricted cash** | 46,455 | — | — | — | ||||||||||||
Due from Authorized Participant | 304,397 | — | — | — | ||||||||||||
Due from Custodian | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 765,924 | 42,608 | 12,297 | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 12,494,428 | 1,997,804 | 661,062 | — | ||||||||||||
Securities lending income | 365,691 | 13,864 | 5,886 | — | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 278,997 | 41,541 | 11,895 | 692 | ||||||||||||
Securities sold | — | 7,098 | — | 189,828 | ||||||||||||
Variation margin on futures contracts | 491,929 | 72,993 | 15,181 | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 5,690,879,209 | 887,649,923 | 272,403,835 | 12,029,529 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft | — | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | 1,015,454 | 49,369 | 4,561 | — | ||||||||||||
Due to brokers | — | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 88,775,678 | 37,862,060 | 3,720,119 | — | ||||||||||||
Deferred compensation (Note 7) | 237,774 | 33,757 | 9,350 | 124 | ||||||||||||
Investment advisory fees (Note 4) | 2,080,943 | 324,340 | 97,790 | 767 | ||||||||||||
Trustee fees (Note 7) | 41,223 | 7,784 | 2,545 | 568 | ||||||||||||
Securities purchased | 756,134 | 9 | — | 190,145 | ||||||||||||
Deferred non-US capital gains taxes | 958 | — | — | — | ||||||||||||
Due to Authorized Participant | 46,455 | — | — | — | ||||||||||||
Variation margin on futures contracts | — | — | — | — | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | 31,500 | 10,000 | 2,000 | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 92,986,119 | 38,287,319 | 3,836,365 | 191,604 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 5,597,893,090 | $ | 849,362,604 | $ | 268,567,470 | $ | 11,837,925 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 5,411,408,230 | $ | 809,025,096 | $ | 244,068,655 | $ | 11,665,835 | ||||||||
Undistributed (accumulated) net investment income (loss) | 17,158,498 | 3,278,858 | 872,245 | (1,441 | ) | |||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (617,675,526 | ) | (26,891,079 | ) | (3,137,466 | ) | (10,036 | ) | ||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 786,947,518 | 63,885,014 | 26,763,211 | 183,567 | ||||||||||||
Securities lending | 2,705 | (252 | ) | — | — | |||||||||||
Futures contracts | 583,272 | 96,737 | 15,658 | — | ||||||||||||
Forward foreign currency contracts and foreign currency translations | (531,607 | ) | (31,770 | ) | (14,833 | ) | — | |||||||||
|
| |||||||||||||||
Net Assets | $ | 5,597,893,090 | $ | 849,362,604 | $ | 268,567,470 | $ | 11,837,925 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 164,950,001 | 18,200,001 | 4,350,001 | 425,001 | ||||||||||||
Net Asset Value | $ | 33.94 | $ | 46.67 | $ | 61.74 | $ | 27.85 | ||||||||
† Cost of foreign cash | $ | 15,412,413 | $ | 2,383,759 | $ | 1,224,858 | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
4 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Quality Dividend Index Fund | FlexShares® Quality Dividend Defensive Index Fund | FlexShares® Quality Dividend Dynamic Index Fund | FlexShares® International Quality Dividend Index Fund | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | 1,501,633,775 | $ | 250,901,640 | $ | 41,156,636 | $ | 1,005,311,183 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | 147,128,228 | 21,633,902 | 2,377,799 | 16,031,797 | ||||||||||||
|
| |||||||||||||||
Securities, at value | 1,822,160,554 | 301,016,027 | 46,487,980 | 1,069,132,636 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | 147,130,187 | 21,633,862 | 2,377,799 | 16,031,797 | ||||||||||||
Cash | 26,123,696 | 2,064,332 | 692,313 | 7,550,903 | ||||||||||||
Cash segregated at broker* | 2,280,379 | 259,033 | 51,978 | 1,446,499 | ||||||||||||
Foreign cash† | — | — | — | 8,396,350 | ||||||||||||
Restricted cash** | — | — | — | 810,405 | ||||||||||||
Due from Authorized Participant | — | — | — | 1,614,871 | ||||||||||||
Due from Custodian | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | 118,706 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 2,082,452 | 322,499 | 69,603 | 4,217,487 | ||||||||||||
Securities lending income | 53,619 | 2,672 | 353 | 125,083 | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 88,645 | 16,685 | 5,511 | 39,421 | ||||||||||||
Securities sold | — | — | 2,130,226 | — | ||||||||||||
Variation margin on futures contracts | — | — | — | 478,657 | ||||||||||||
|
| |||||||||||||||
Total Assets | 1,999,919,532 | 325,315,110 | 51,815,763 | 1,109,962,815 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft | — | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | 194,111 | ||||||||||||
Due to brokers | — | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 147,126,807 | 21,633,902 | 2,377,799 | 16,031,797 | ||||||||||||
Deferred compensation (Note 7) | 72,204 | 13,301 | 4,238 | 30,934 | ||||||||||||
Investment advisory fees (Note 4) | 561,970 | 93,076 | 14,925 | 415,786 | ||||||||||||
Trustee fees (Note 7) | 16,441 | 3,384 | 1,273 | 8,487 | ||||||||||||
Securities purchased | — | — | — | 2,083,343 | ||||||||||||
Deferred non-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | 810,405 | ||||||||||||
Variation margin on futures contracts | 844,965 | 74,851 | 16,379 | — | ||||||||||||
Capital shares redeemed | — | — | 2,166,547 | — | ||||||||||||
Other | 12,750 | 3,750 | 2,250 | 25,000 | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 148,635,137 | 21,822,264 | 4,583,411 | 19,599,863 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,851,284,395 | $ | 303,492,846 | $ | 47,232,352 | $ | 1,090,362,952 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 1,487,047,688 | $ | 244,429,802 | $ | 38,342,385 | $ | 1,047,278,475 | ||||||||
Undistributed (accumulated) net investment income (loss) | 7,255,558 | 1,293,584 | 233,741 | 7,427,220 | ||||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | 37,141,699 | 7,708,465 | 3,338,212 | (28,367,586 | ) | |||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 320,526,779 | 50,114,387 | 5,331,344 | 63,821,453 | ||||||||||||
Securities lending | 1,959 | (40 | ) | — | — | |||||||||||
Futures contracts | (689,288 | ) | (53,352 | ) | (13,330 | ) | 505,460 | |||||||||
Forward foreign currency contracts and foreign currency translations | — | — | — | (302,070 | ) | |||||||||||
|
| |||||||||||||||
Net Assets | $ | 1,851,284,395 | $ | 303,492,846 | $ | 47,232,352 | $ | 1,090,362,952 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 41,950,001 | 7,000,001 | 1,100,001 | 41,300,001 | ||||||||||||
Net Asset Value | $ | 44.13 | $ | 43.36 | $ | 42.94 | $ | 26.40 | ||||||||
† Cost of foreign cash | $ | — | $ | — | $ | — | $ | 8,577,476 |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 5 |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® International Quality Dividend Defensive Index Fund | FlexShares® International Quality Dividend Dynamic Index Fund | FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | 93,138,706 | $ | 81,474,203 | $ | 2,151,419,961 | $ | 930,076,840 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | 282,898 | 96,318 | — | — | ||||||||||||
|
| |||||||||||||||
Securities, at value | 98,439,632 | 86,728,109 | 2,131,941,453 | 916,612,600 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | 282,898 | 96,318 | — | — | ||||||||||||
Cash | 1,444,809 | 287,000 | 481,371 | 1,346,478 | ||||||||||||
Cash segregated at broker* | 226,059 | 61,743 | — | — | ||||||||||||
Foreign cash† | 1,920,589 | 261,293 | — | — | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Due from Custodian | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 4,884 | — | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 464,155 | 329,833 | 2,653,282 | 1,814,665 | ||||||||||||
Securities lending income | 12,532 | 6,221 | — | — | ||||||||||||
Capital shares issued | — | — | 2,426,265 | — | ||||||||||||
Investment adviser | 6,033 | 3,982 | 177,833 | 58,350 | ||||||||||||
Securities sold | 5,876 | — | 228,109,854 | 136,509,573 | ||||||||||||
Variation margin on futures contracts | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 102,807,467 | 87,774,499 | 2,365,790,058 | 1,056,341,666 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft | — | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | 303 | — | — | — | ||||||||||||
Due to brokers | — | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | 282,898 | 96,318 | — | — | ||||||||||||
Deferred compensation (Note 7) | 4,721 | 2,768 | 160,176 | 50,825 | ||||||||||||
Investment advisory fees (Note 4) | 38,967 | 33,674 | 314,550 | 137,449 | ||||||||||||
Trustee fees (Note 7) | 1,312 | 1,214 | 17,657 | 7,525 | ||||||||||||
Securities purchased | — | — | 228,814,991 | 136,228,823 | ||||||||||||
Deferred non-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Variation margin on futures contracts | 25,301 | 4,828 | — | — | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | 10,000 | 5,000 | — | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 363,502 | 143,802 | 229,307,374 | 136,424,622 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 102,443,965 | $ | 87,630,697 | $ | 2,136,482,684 | $ | 919,917,044 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 108,705,227 | $ | 85,473,460 | $ | 2,203,267,603 | $ | 942,230,227 | ||||||||
Undistributed (accumulated) net investment income (loss) | 765,416 | 640,438 | 9,718,371 | 4,253,382 | ||||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (12,270,984 | ) | (3,727,619 | ) | (57,024,782 | ) | (13,102,325 | ) | ||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 5,300,926 | 5,253,906 | (19,478,508 | ) | (13,464,240 | ) | ||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | (22,823 | ) | (412 | ) | — | — | ||||||||||
Forward foreign currency contracts and foreign currency translations | (33,797 | ) | (9,076 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Assets | $ | 102,443,965 | $ | 87,630,697 | $ | 2,136,482,684 | $ | 919,917,044 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 4,100,001 | 3,100,001 | 87,954,000 | 37,350,001 | ||||||||||||
Net Asset Value | $ | 24.99 | $ | 28.27 | $ | 24.29 | $ | 24.63 | ||||||||
† Cost of foreign cash | $ | 1,952,807 | $ | 265,081 | $ | — | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
6 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Disciplined Duration MBS Index Fund | FlexShares® Credit-Scored US Corporate Bond Index Fund | FlexShares® Credit-Scored US Long Corporate Bond Index Fund | FlexShares® Ready Access Variable Income Fund | |||||||||||||
ASSETS |
| |||||||||||||||
Securities, at cost | $ | 48,470,892 | $ | 59,689,043 | $ | 28,122,183 | $ | 135,741,207 | ||||||||
Affiliate securities, at cost | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at cost | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Securities, at value | 47,243,145 | 58,130,412 | 27,291,926 | 135,732,803 | ||||||||||||
Affiliate securities, at value | — | — | — | — | ||||||||||||
Securities Lending Reinvestments, at value | — | — | — | — | ||||||||||||
Cash | 7,013,593 | 328,004 | 34,546 | — | ||||||||||||
Cash segregated at broker* | — | — | — | — | ||||||||||||
Foreign cash† | — | — | — | — | ||||||||||||
Restricted cash** | — | — | — | — | ||||||||||||
Due from Authorized Participant | — | — | — | — | ||||||||||||
Due from Custodian | — | — | — | 1,599,720 | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends and interest | 137,113 | 488,721 | 361,350 | 722,060 | ||||||||||||
Securities lending income | — | — | — | — | ||||||||||||
Capital shares issued | — | — | — | — | ||||||||||||
Investment adviser | 2,334 | 2,409 | 1,177 | 9,172 | ||||||||||||
Securities sold | 74,361 | 2,373,988 | 1,964,674 | 2,342,316 | ||||||||||||
Variation margin on futures contracts | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Assets | 54,470,546 | 61,323,534 | 29,653,673 | 140,406,071 | ||||||||||||
|
| |||||||||||||||
LIABILITIES |
| |||||||||||||||
Cash overdraft | — | — | — | 1,528,340 | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | — | ||||||||||||
Due to brokers | — | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Cash collateral received from securities loaned | — | — | — | — | ||||||||||||
Deferred compensation (Note 7) | 1,524 | 1,506 | 518 | 7,152 | ||||||||||||
Investment advisory fees (Note 4) | 7,053 | 9,903 | 4,305 | 27,863 | ||||||||||||
Trustee fees (Note 7) | 810 | 903 | 659 | 2,020 | ||||||||||||
Securities purchased | 6,963,491 | 2,454,692 | 1,775,290 | 3,099,720 | ||||||||||||
Deferred non-US capital gains taxes | — | — | — | — | ||||||||||||
Due to Authorized Participant | — | — | — | — | ||||||||||||
Variation margin on futures contracts | — | — | — | — | ||||||||||||
Capital shares redeemed | — | — | — | — | ||||||||||||
Other | 2,000 | 1,000 | 1,000 | — | ||||||||||||
|
| |||||||||||||||
Total Liabilities | 6,974,878 | 2,468,004 | 1,781,772 | 4,665,095 | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 47,495,668 | $ | 58,855,530 | $ | 27,871,901 | $ | 135,740,976 | ||||||||
|
| |||||||||||||||
NET ASSETS CONSIST OF: |
| |||||||||||||||
Paid-in capital | $ | 50,368,596 | $ | 60,584,463 | $ | 28,788,651 | $ | 135,652,844 | ||||||||
Undistributed (accumulated) net investment income (loss) | (145,952 | ) | 125,946 | 78,621 | 232,724 | |||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (1,499,229 | ) | (296,248 | ) | (165,114 | ) | (136,188 | ) | ||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (1,227,747 | ) | (1,558,631 | ) | (830,257 | ) | (8,404 | ) | ||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | — | — | — | — | ||||||||||||
Forward foreign currency contracts and foreign currency translations | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Assets | $ | 47,495,668 | $ | 58,855,530 | $ | 27,871,901 | $ | 135,740,976 | ||||||||
|
| |||||||||||||||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 2,050,001 | 1,200,001 | 550,001 | 1,800,001 | ||||||||||||
Net Asset Value | $ | 23.17 | $ | 49.05 | $ | 50.68 | $ | 75.41 | ||||||||
† Cost of foreign cash | $ | — | $ | — | $ | — | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 7 |
Table of Contents
Statements of Assets and Liabilities (cont.)
FlexShares® Core Select Bond Fund | ||||
ASSETS |
| |||
Securities, at cost | $ | 2,788,734 | ||
Affiliate securities, at cost | 19,896,621 | |||
Securities Lending Reinvestments, at cost | — | |||
|
| |||
Securities, at value | 2,775,628 | |||
Affiliate securities, at value | 19,533,367 | |||
Securities Lending Reinvestments, at value | — | |||
Cash | 121,023 | |||
Cash segregated at broker* | — | |||
Foreign cash† | — | |||
Restricted cash** | — | |||
Due from Authorized Participant | — | |||
Due from Custodian | — | |||
Unrealized appreciation on forward foreign currency contracts | — | |||
Receivables: | ||||
Dividends and interest | — | |||
Securities lending income | — | |||
Capital shares issued | — | |||
Investment adviser | 647 | |||
Securities sold | — | |||
Variation margin on futures contracts | — | |||
|
| |||
Total Assets | 22,430,665 | |||
|
| |||
LIABILITIES |
| |||
Cash overdraft | — | |||
Unrealized depreciation on forward foreign currency contracts | — | |||
Due to brokers | — | |||
Payables: | ||||
Cash collateral received from securities loaned | — | |||
Deferred compensation (Note 7) | 122 | |||
Investment advisory fees (Note 4) | 2,571 | |||
Trustee fees (Note 7) | 525 | |||
Securities purchased | — | |||
Deferred non-US capital gains taxes | — | |||
Due to Authorized Participant | — | |||
Variation margin on futures contracts | — | |||
Capital shares redeemed | — | |||
Other | — | |||
|
| |||
Total Liabilities | 3,218 | |||
|
| |||
Net Assets | $ | 22,427,447 | ||
|
| |||
NET ASSETS CONSIST OF: |
| |||
Paid-in capital | $ | 22,889,076 | ||
Undistributed (accumulated) net investment income (loss) | (2,517 | ) | ||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (82,752 | ) | ||
Net unrealized appreciation (depreciation) on: | ||||
Investments | (376,360 | ) | ||
Securities lending | — | |||
Futures contracts | — | |||
Forward foreign currency contracts and foreign currency translations | — | |||
|
| |||
Net Assets | $ | 22,427,447 | ||
|
| |||
Shares Outstanding (unlimited number of shares authorized $0.0001 par value) | 925,001 | |||
Net Asset Value | $ | 24.25 | ||
† Cost of foreign cash | $ | — |
* | Includes cash pledged by the Fund to cover margin requirements for open futures contracts as of 04/30. |
** | Includes cash pledged by an Authorized Participant for missing deposit securities required to secure Creation Units. |
See Accompanying Notes to the Financial Statements.
8 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Trust
For the six months ended April 30, 2018 (Unaudited)
FlexShares® Morningstar US Market Factor Tilt Index Fund | FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | |||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income | $ | 11,435,103 | $ | 16,215,170 | $ | 6,596,638 | $ | — | ||||||||
Income from non-cash dividends | — | — | — | — | ||||||||||||
Dividend income received from affiliate | 6,240 | — | — | 231,688 | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 458,502 | 542,523 | 120,987 | — | ||||||||||||
Foreign withholding tax on dividends | (1,941 | ) | (1,487,619 | ) | (573,817 | ) | — | |||||||||
Foreign withholding tax on interest | — | — | (7 | ) | — | |||||||||||
|
| |||||||||||||||
Total Investment Income | 11,897,904 | 15,270,074 | 6,143,801 | 231,688 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 2,040 | 1,725 | 904 | 51 | ||||||||||||
Investment advisory fees | 1,508,343 | 2,068,929 | 1,940,118 | 34,785 | ||||||||||||
Trustee fees (Note 7) | 28,064 | 24,438 | 15,486 | 1,416 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 1,538,447 | 2,095,092 | 1,956,508 | 36,252 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (2,040 | ) | (1,725 | ) | (904 | ) | (51 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | (31,019 | ) | |||||||||||
Trustee fees reimbursed (Note 7) | (28,064 | ) | (24,438 | ) | (15,486 | ) | (1,416 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 1,508,343 | 2,068,929 | 1,940,118 | 3,766 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 10,389,561 | 13,201,145 | 4,203,683 | 227,922 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | 33,558 | ||||||||||||
Transactions in investment securities | 1,630,095 | 2,189,112 | 9,601,716 | (1) | — | |||||||||||
In-kind redemptions on investments in affiliated securities | 2,296 | — | — | 1,810,262 | ||||||||||||
In-kind redemptions on investments in securities | 5,753,797 | — | — | — | ||||||||||||
Expiration or closing of futures contracts | 1,214,154 | 420,974 | 195,369 | 1,377 | ||||||||||||
Settlement of forward foreign currency contracts | — | 6,342 | (2,286 | ) | (412,797 | ) | ||||||||||
Foreign currency transactions | — | 210,129 | (125,953 | ) | (192,102 | ) | ||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | 8,600,342 | 2,826,557 | 9,668,846 | 1,240,298 | ||||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities | 17,972,422 | (2) | 18,032,367 | 14,877,355 | (3) | (1,455,028 | )(4) | |||||||||
Securities lending | (1,179 | ) | — | — | — | |||||||||||
Futures contracts | (592,718 | ) | 76,151 | (273,083 | ) | — | ||||||||||
Forward foreign currency contracts | — | 66,520 | 26,217 | 4,811 | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | (170,826 | ) | 34,052 | — | |||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 17,378,525 | 18,004,212 | 14,664,541 | (1,450,217 | ) | |||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 25,978,867 | 20,830,769 | 24,333,387 | (209,919 | ) | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 36,368,428 | $ | 34,031,914 | $ | 28,537,070 | $ | 18,003 | ||||||||
|
|
(1) | Net of non-US capital gains tax of $172,225. |
(2) | Includes $95,880 change in unrealized appreciation on investments in affiliates. |
(3) | Net of deferred non-US capital gains tax of $214,167. |
(4) | Includes $(1,455,028) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 9 |
Table of Contents
Statements of Operations (cont.)
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | FlexShares® US Quality Large Cap Index Fund | FlexShares® STOXX® US ESG Impact Index Fund | FlexShares® STOXX® Global ESG Impact Index Fund | |||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income | $ | — | $ | 354,129 | $ | 177,900 | $ | 758,388 | ||||||||
Income from non-cash dividends | — | — | — | — | ||||||||||||
Dividend income received from affiliate | 313,043 | — | — | — | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | — | — | — | — | ||||||||||||
Foreign withholding tax on dividends | — | — | — | (45,587 | ) | |||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 313,043 | 354,129 | 177,900 | 712,801 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 75 | 46 | 16 | 45 | ||||||||||||
Investment advisory fees | 126,565 | 58,092 | 28,079 | 114,868 | ||||||||||||
Trustee fees (Note 7) | 1,922 | 1,809 | 1,405 | 2,245 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 128,562 | 59,947 | 29,500 | 117,158 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (75 | ) | (46 | ) | (16 | ) | (45 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | (116,298 | ) | — | — | — | |||||||||||
Trustee fees reimbursed (Note 7) | (1,922 | ) | (1,809 | ) | (1,405 | ) | (2,245 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 10,267 | 58,092 | 28,079 | 114,868 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 302,776 | 296,037 | 149,821 | 597,933 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | 122,102 | — | — | — | ||||||||||||
Transactions in investment securities | — | 69,959 | 441,181 | 37,018 | ||||||||||||
In-kind redemptions on investments in affiliated securities | 2,296,681 | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | — | — | — | ||||||||||||
Expiration or closing of futures contracts | 7,081 | 8,740 | 5,518 | 20,462 | ||||||||||||
Settlement of forward foreign currency contracts | (636,957 | ) | — | — | — | |||||||||||
Foreign currency transactions | (103,741 | ) | — | — | 1,322 | |||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | 1,685,166 | 78,699 | 446,699 | 58,802 | ||||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities | (1,084,332 | )(1) | 1,354,943 | 83,559 | 270,965 | |||||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | (9,678 | ) | (4,867 | ) | (3,729 | ) | (16,918 | ) | ||||||||
Forward foreign currency contracts | 79,759 | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | 8 | — | — | (7,153 | ) | |||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (1,014,243 | ) | 1,350,076 | 79,830 | 246,894 | |||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 670,923 | 1,428,775 | 526,529 | 305,696 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 973,699 | $ | 1,724,812 | $ | 676,350 | $ | 903,629 | ||||||||
|
|
(1) | Includes $(1,084,332) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
10 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Operations (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | FlexShares® STOXX® Global Broad Infrastructure Index Fund | FlexShares® Global Quality Real Estate Index Fund | FlexShares® Real Assets Allocation Index Fund | |||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income | $ | 78,934,197 | $ | 13,200,015 | $ | 4,839,939 | $ | — | ||||||||
Income from non-cash dividends | — | — | — | — | ||||||||||||
Dividend income received from affiliate | — | — | — | 106,278 | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 1,204,338 | 96,966 | 25,975 | — | ||||||||||||
Foreign withholding tax on dividends | (2,794,352 | ) | (675,368 | ) | (164,495 | ) | — | |||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 77,344,183 | 12,621,613 | 4,701,419 | 106,278 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 8,302 | 1,570 | 438 | 11 | ||||||||||||
Investment advisory fees | 11,958,887 | 1,995,863 | 575,394 | 26,443 | ||||||||||||
Trustee fees (Note 7) | 113,615 | 19,594 | 6,583 | 1,234 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 12,080,804 | 2,017,027 | 582,415 | 27,688 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (8,302 | ) | (1,570 | ) | (438 | ) | (11 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | (21,318 | ) | |||||||||||
Trustee fees reimbursed (Note 7) | (113,615 | ) | (19,594 | ) | (6,583 | ) | (1,234 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 11,958,887 | 1,995,863 | 575,394 | 5,125 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 65,385,296 | 10,625,750 | 4,126,025 | 101,153 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | (9,241 | ) | |||||||||||
Transactions in investment securities | (95,568,391 | )(1) | (5,423,981 | )(2) | (1,426,461 | ) | — | |||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | 7,174,378 | — | — | ||||||||||||
Expiration or closing of futures contracts | 2,071,000 | 400,407 | 494,051 | — | ||||||||||||
Settlement of forward foreign currency contracts | 70,280 | (15,708 | ) | (16,304 | ) | — | ||||||||||
Foreign currency transactions | 303,702 | 25,224 | 6,021 | — | ||||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (93,123,409 | ) | 2,160,320 | (942,693 | ) | (9,241 | ) | |||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities | 437,529,891 | (3) | (22,687,653 | ) | (640,844 | ) | (108,404 | )(4) | ||||||||
Securities lending | (88 | ) | (693 | ) | — | — | ||||||||||
Futures contracts | (1,113,957 | ) | (201,938 | ) | (224,086 | ) | — | |||||||||
Forward foreign currency contracts | (208,117 | ) | 26,787 | 4,822 | — | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies | (118,033 | ) | (18,810 | ) | 2,847 | — | ||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 436,089,696 | (22,882,307 | ) | (857,261 | ) | (108,404 | ) | |||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 342,966,287 | (20,721,987 | ) | (1,799,954 | ) | (117,645 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 408,351,583 | $ | (10,096,237 | ) | $ | 2,326,071 | $ | (16,492 | ) | ||||||
|
|
(1) | Net of non-US capital gains tax of $12,786. |
(2) | Net of non-US capital gains tax of $14,048. |
(3) | Net of deferred non-US capital gains tax of $412,574. |
(4) | Includes $(108,404) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 11 |
Table of Contents
Statements of Operations (cont.)
FlexShares® Quality Dividend Index Fund | FlexShares® Quality Dividend Defensive Index Fund | FlexShares® Quality Dividend Dynamic Index Fund | FlexShares® International Quality Dividend Index Fund | |||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income | $ | 30,482,137 | $ | 5,229,676 | $ | 884,087 | $ | 23,033,446 | ||||||||
Income from non-cash dividends | — | — | 46,293 | — | ||||||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | — | — | — | — | ||||||||||||
Securities lending income (net of fees) (Note 2) | 268,449 | 21,639 | 2,870 | 418,229 | ||||||||||||
Foreign withholding tax on dividends | — | — | — | (2,020,406 | ) | |||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 30,750,586 | 5,251,315 | 933,250 | 21,431,269 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 3,317 | 564 | 115 | 1,709 | ||||||||||||
Investment advisory fees | 3,504,858 | 581,142 | 105,088 | 2,444,775 | ||||||||||||
Trustee fees (Note 7) | 43,449 | 8,452 | 2,786 | 23,302 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 3,551,624 | 590,158 | 107,989 | 2,469,786 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (3,317 | ) | (564 | ) | (115 | ) | (1,709 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (43,449 | ) | (8,452 | ) | (2,786 | ) | (23,302 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 3,504,858 | 581,142 | 105,088 | 2,444,775 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 27,245,728 | 4,670,173 | 828,162 | 18,986,494 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | — | ||||||||||||
Transactions in investment securities | 22,111,395 | 3,972,260 | 1,468,316 | 17,265,860 | (1) | |||||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | 22,626,396 | 5,405,471 | 3,230,246 | — | ||||||||||||
Expiration or closing of futures contracts | 2,201,398 | 164,702 | 48,052 | 264,754 | ||||||||||||
Settlement of forward foreign currency contracts | — | — | — | 63,116 | ||||||||||||
Foreign currency transactions | — | — | — | 177,165 | ||||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | 46,939,189 | 9,542,433 | 4,746,614 | 17,770,895 | ||||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities | 20,176,649 | 202,039 | (2,867,212 | ) | (17,416,840 | ) | ||||||||||
Securities lending | (1,548 | ) | (193 | ) | — | (57 | ) | |||||||||
Futures contracts | (1,626,306 | ) | (116,391 | ) | (31,356 | ) | 145,190 | |||||||||
Forward foreign currency contracts | — | — | — | (72,184 | ) | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | — | (220,719 | ) | |||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 18,548,795 | 85,455 | (2,898,568 | ) | (17,564,610 | ) | ||||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 65,487,984 | 9,627,888 | 1,848,046 | 206,285 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 92,733,712 | $ | 14,298,061 | $ | 2,676,208 | $ | 19,192,779 | ||||||||
|
|
(1) | Net of non-US capital gains tax of $69,349. |
See Accompanying Notes to the Financial Statements.
12 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Operations (cont.)
FlexShares® International Quality Dividend Defensive Index Fund | FlexShares® International Quality Dividend Dynamic Index Fund | FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | |||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income | $ | 2,438,586 | $ | 1,848,564 | $ | — | $ | — | ||||||||
Income from non-cash dividends | — | — | — | — | ||||||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | — | — | 30,185,070 | 13,782,197 | ||||||||||||
Securities lending income (net of fees) (Note 2) | 47,521 | 22,780 | — | — | ||||||||||||
Foreign withholding tax on dividends | (238,611 | ) | (146,264 | ) | — | — | ||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 2,247,496 | 1,725,080 | 30,185,070 | 13,782,197 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 157 | 146 | 3,403 | 1,320 | ||||||||||||
Investment advisory fees | 231,821 | 201,194 | 1,858,314 | 793,648 | ||||||||||||
Trustee fees (Note 7) | 3,193 | 2,843 | 46,799 | 20,618 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 235,171 | 204,183 | 1,908,516 | 815,586 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (157 | ) | (146 | ) | (3,403 | ) | (1,320 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (3,193 | ) | (2,843 | ) | (46,799 | ) | (20,618 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 231,821 | 201,194 | 1,858,314 | 793,648 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 2,015,675 | 1,523,886 | 28,326,756 | 12,988,549 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | — | ||||||||||||
Transactions in investment securities | 1,298,460 | (1) | 1,396,886 | (2) | (14,997,911 | ) | (4,744,790 | ) | ||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | 1,432,093 | (150,735 | ) | 7,663 | |||||||||||
Expiration or closing of futures contracts | 56,407 | 51,730 | — | — | ||||||||||||
Settlement of forward foreign currency contracts | 2,969 | — | — | — | ||||||||||||
Foreign currency transactions | 8,292 | (20,132 | ) | — | — | |||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | 1,366,128 | 2,860,577 | (15,148,646 | ) | (4,737,127 | ) | ||||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||||||||||||||
Investments in securities | (1,661,123 | ) | (1,855,140 | ) | (16,997,717 | ) | (12,531,587 | ) | ||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | (56,771 | ) | (22,975 | ) | — | — | ||||||||||
Forward foreign currency contracts | 420 | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | (46,223 | ) | (6,443 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (1,763,697 | ) | (1,884,558 | ) | (16,997,717 | ) | (12,531,587 | ) | ||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | (397,569 | ) | 976,019 | (32,146,363 | ) | (17,268,714 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,618,106 | $ | 2,499,905 | $ | (3,819,607 | ) | $ | (4,280,165 | ) | ||||||
|
|
(1) | Net of non-US capital gains tax of $272. |
(2) | Net of non-US capital gains tax of $7,628. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 13 |
Table of Contents
Statements of Operations (cont.)
FlexShares® Disciplined Duration MBS Index Fund | FlexShares® Credit-Scored US Corporate Bond Index Fund | FlexShares® Credit-Scored US Long Corporate Bond Index Fund | FlexShares® Ready Access Variable Income Fund | |||||||||||||
INVESTMENT INCOME |
| |||||||||||||||
Dividend income | $ | — | $ | — | $ | — | $ | — | ||||||||
Income from non-cash dividends | — | — | — | — | ||||||||||||
Dividend income received from affiliate | — | — | — | — | ||||||||||||
Interest income | 412,108 | 752,909 | 422,635 | 1,398,902 | ||||||||||||
Securities lending income (net of fees) (Note 2) | — | — | — | — | ||||||||||||
Foreign withholding tax on dividends | — | — | — | — | ||||||||||||
Foreign withholding tax on interest | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total Investment Income | 412,108 | 752,909 | 422,635 | 1,398,902 | ||||||||||||
|
| |||||||||||||||
EXPENSES |
| |||||||||||||||
Deferred compensation (Note 7) | 66 | 89 | 32 | 264 | ||||||||||||
Investment advisory fees | 38,126 | 57,520 | 22,501 | 177,245 | ||||||||||||
Trustee fees (Note 7) | 1,865 | 2,179 | 1,483 | 4,631 | ||||||||||||
|
| |||||||||||||||
Total Gross Expenses Before Fees Reimbursed | 40,057 | 59,788 | 24,016 | 182,140 | ||||||||||||
|
| |||||||||||||||
Less: |
| |||||||||||||||
Deferred compensation reimbursed (Note 7) | (66 | ) | (89 | ) | (32 | ) | (264 | ) | ||||||||
Investment advisory fees reimbursed (Note 4) | — | — | — | — | ||||||||||||
Trustee fees reimbursed (Note 7) | (1,865 | ) | (2,179 | ) | (1,483 | ) | (4,631 | ) | ||||||||
|
| |||||||||||||||
Total Net Expenses | 38,126 | 57,520 | 22,501 | 177,245 | ||||||||||||
|
| |||||||||||||||
Net Investment Income (Loss) | 373,982 | 695,389 | 400,134 | 1,221,657 | ||||||||||||
|
| |||||||||||||||
NET REALIZED GAIN (LOSS) FROM: |
| |||||||||||||||
Transactions in investment securities of affiliated issuers | — | — | — | — | ||||||||||||
Transactions in investment securities | (68,960 | ) | (272,022 | ) | (119,925 | ) | (147,998 | ) | ||||||||
In-kind redemptions on investments in affiliated securities | — | — | — | — | ||||||||||||
In-kind redemptions on investments in securities | — | — | — | 14,074 | ||||||||||||
Expiration or closing of futures contracts | — | — | — | — | ||||||||||||
Settlement of forward foreign currency contracts | — | — | — | — | ||||||||||||
Foreign currency transactions | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Realized Gain (Loss) | (68,960 | ) | (272,022 | ) | (119,925 | ) | (133,924 | ) | ||||||||
|
| |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||||||||||||||
Investments in securities | (814,127 | ) | (1,801,526 | ) | (1,351,829 | ) | (305,061 | ) | ||||||||
Securities lending | — | — | — | — | ||||||||||||
Futures contracts | — | — | — | — | ||||||||||||
Forward foreign currency contracts | — | — | — | — | ||||||||||||
Translation of other assets and liabilities denominated in foreign currencies | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (814,127 | ) | (1,801,526 | ) | (1,351,829 | ) | (305,061 | ) | ||||||||
|
| |||||||||||||||
Net Realized and Unrealized Gain (Loss) | (883,087 | ) | (2,073,548 | ) | (1,471,754 | ) | (438,985 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (509,105 | ) | $ | (1,378,159 | ) | $ | (1,071,620 | ) | $ | 782,672 | |||||
|
|
See Accompanying Notes to the Financial Statements.
14 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Operations (cont.)
FlexShares® Core Select Bond Fund | ||||
INVESTMENT INCOME |
| |||
Dividend income | $ | 12,034 | ||
Income from non-cash dividends | — | |||
Dividend income received from affiliate | 151,339 | |||
Interest income | 691 | |||
Securities lending income (net of fees) (Note 2) | — | |||
Foreign withholding tax on dividends | — | |||
Foreign withholding tax on interest | — | |||
|
| |||
Total Investment Income | 164,064 | |||
|
| |||
EXPENSES |
| |||
Deferred compensation (Note 7) | 4 | |||
Investment advisory fees | 22,752 | |||
Trustee fees (Note 7) | 1,260 | |||
|
| |||
Total Gross Expenses Before Fees Reimbursed | 24,016 | |||
|
| |||
Less: |
| |||
Deferred compensation reimbursed (Note 7) | (4 | ) | ||
Investment advisory fees reimbursed (Note 4) | (12,451 | ) | ||
Trustee fees reimbursed (Note 7) | (1,260 | ) | ||
|
| |||
Total Net Expenses | 10,301 | |||
|
| |||
Net Investment Income (Loss) | 153,763 | |||
|
| |||
NET REALIZED GAIN (LOSS) FROM: |
| |||
Transactions in investment securities of affiliated issuers | (59,851 | ) | ||
Transactions in investment securities | (32,940 | ) | ||
In-kind redemptions on investments in affiliated securities | 206 | |||
In-kind redemptions on investments in securities | 248 | |||
Expiration or closing of futures contracts | 25,226 | |||
Settlement of forward foreign currency contracts | — | |||
Foreign currency transactions | — | |||
|
| |||
Net Realized Gain (Loss) | (67,111 | ) | ||
|
| |||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: |
| |||
Investments in securities | (392,277 | )(1) | ||
Securities lending | — | |||
Futures contracts | (4,571 | ) | ||
Forward foreign currency contracts | — | |||
Translation of other assets and liabilities denominated in foreign currencies | — | |||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) | (396,848 | ) | ||
|
| |||
Net Realized and Unrealized Gain (Loss) | (463,959 | ) | ||
|
| |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (310,196 | ) | |
|
|
(1) | Includes $(378,166) change in unrealized depreciation on investments in affiliates. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 15 |
Table of Contents
FlexShares® Trust
Statements of Changes in Net Assets
FlexShares® Morningstar US Market Factor Tilt Index Fund | FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 10,389,561 | $ | 17,763,815 | $ | 13,201,145 | $ | 20,623,457 | ||||||||
Net realized gain (loss) | 8,600,342 | 3,998,619 | 2,826,557 | (5,182,583 | ) | |||||||||||
Net increase from payments by affiliates | — | — | — | 10,248 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 17,378,525 | 186,736,480 | 18,004,212 | 162,246,210 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 36,368,428 | 208,498,914 | 34,031,914 | 177,697,332 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (9,744,317 | ) | (17,203,496 | ) | (13,769,418 | ) | (20,692,030 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (9,744,317 | ) | (17,203,496 | ) | (13,769,418 | ) | (20,692,030 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 38,843,466 | 138,394,830 | 110,060,126 | 205,703,755 | ||||||||||||
Cost of shares redeemed | (16,519,122 | ) | (9,743,868 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 22,324,344 | 128,650,962 | 110,060,126 | 205,703,755 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 48,948,455 | 319,946,380 | 130,322,622 | 362,709,057 | ||||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 1,150,199,058 | $ | 830,252,678 | $ | 985,607,547 | $ | 622,898,490 | ||||||||
|
| |||||||||||||||
End of Period | $ | 1,199,147,513 | $ | 1,150,199,058 | $ | 1,115,930,169 | $ | 985,607,547 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 2,890,757 | $ | 2,245,513 | $ | 1,502,586 | $ | 2,070,859 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 10,700,001 | 9,400,001 | 14,600,001 | 11,200,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 350,000 | 1,400,000 | 1,600,000 | 3,400,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (150,000 | ) | (100,000 | ) | — | — | ||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 10,900,001 | 10,700,001 | 16,200,001 | 14,600,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
16 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 4,203,683 | $ | 10,444,529 | $ | 227,922 | $ | 385,670 | ||||||||
Net realized gain (loss) | 9,668,846 | 2,685,437 | 1,240,298 | 210,970 | ||||||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | 14,664,541 | 79,744,981 | (1,450,217 | ) | 2,666,671 | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 28,537,070 | 92,874,947 | 18,003 | 3,263,311 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (4,861,098 | ) | (10,564,341 | ) | (352,648 | ) | (386,878 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (4,861,098 | ) | (10,564,341 | ) | (352,648 | ) | (386,878 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 126,783,448 | 186,409,055 | 1,414,639 | 26,565,920 | ||||||||||||
Cost of shares redeemed | — | — | (10,678,404 | ) | (14,096,084 | ) | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 126,783,448 | 186,409,055 | (9,263,765 | ) | 12,469,836 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 150,459,420 | 268,719,661 | (9,598,410 | ) | 15,346,269 | |||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 568,070,590 | $ | 299,350,929 | $ | 18,941,163 | $ | 3,594,894 | ||||||||
|
| |||||||||||||||
End of Period | $ | 718,530,010 | $ | 568,070,590 | $ | 9,342,753 | $ | 18,941,163 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | (190,733 | ) | $ | 466,682 | $ | (539 | ) | $ | 124,187 | ||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 9,900,001 | 6,300,001 | 650,001 | 150,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 2,100,000 | 3,600,000 | 50,000 | 1,025,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | — | (375,000 | ) | (525,000 | ) | ||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 12,000,001 | 9,900,001 | 325,001 | 650,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 17 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | FlexShares® US Quality Large Cap Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 302,776 | $ | 887,210 | $ | 296,037 | $ | 307,144 | ||||||||
Net realized gain (loss) | 1,685,166 | 2,452,108 | 78,699 | 417,880 | ||||||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | (1,014,243 | ) | 4,304,175 | 1,350,076 | 2,368,515 | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 973,699 | 7,643,493 | 1,724,812 | 3,093,539 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (312,720 | ) | (889,287 | ) | (257,350 | ) | (281,734 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (312,720 | ) | (889,287 | ) | (257,350 | ) | (281,734 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | — | 11,741,649 | 14,188,955 | 23,378,847 | ||||||||||||
Cost of shares redeemed | (6,220,360 | ) | (10,778,254 | ) | — | (5,673,272 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | (6,220,360 | ) | 963,395 | 14,188,955 | 17,705,575 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | (5,559,381 | ) | 7,717,601 | 15,656,417 | 20,517,380 | |||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 41,284,775 | $ | 33,567,174 | $ | 27,055,205 | $ | 6,537,825 | ||||||||
|
| |||||||||||||||
End of Period | $ | 35,725,394 | $ | 41,284,775 | $ | 42,711,622 | $ | 27,055,205 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | (2,263 | ) | $ | 7,681 | $ | 74,916 | $ | 36,229 | |||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 1,350,001 | 1,300,001 | 850,001 | 250,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | — | 425,000 | 425,000 | 800,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (200,000 | ) | (375,000 | ) | — | (200,000 | ) | |||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 1,150,001 | 1,350,001 | 1,275,001 | 850,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
18 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® STOXX® US ESG Impact Index Fund | FlexShares® STOXX® Global ESG Impact Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 149,821 | $ | 162,683 | $ | 597,933 | $ | 184,459 | ||||||||
Net realized gain (loss) | 446,699 | 4,886 | 58,802 | 19,480 | ||||||||||||
Net increase from payments by affiliates | — | — | — | 69 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 79,830 | 1,507,838 | 246,894 | 2,120,227 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 676,350 | 1,675,407 | 903,629 | 2,324,235 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (136,356 | ) | (147,860 | ) | (374,462 | ) | (177,721 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (136,356 | ) | (147,860 | ) | (374,462 | ) | (177,721 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 9,370,097 | 7,085,865 | 33,307,155 | 22,490,287 | ||||||||||||
Cost of shares redeemed | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 9,370,097 | 7,085,865 | 33,307,155 | 22,490,287 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 9,910,091 | 8,613,412 | 33,836,322 | 24,636,801 | ||||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 13,609,566 | $ | 4,996,154 | $ | 32,188,705 | $ | 7,551,904 | ||||||||
|
| |||||||||||||||
End of Period | $ | 23,519,657 | $ | 13,609,566 | $ | 66,025,027 | $ | 32,188,705 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 39,425 | $ | 25,960 | $ | 259,395 | $ | 35,924 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 225,001 | 100,001 | 350,001 | 100,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 150,000 | 125,000 | 350,000 | 250,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 375,001 | 225,001 | 700,001 | 350,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 19 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | FlexShares® STOXX® Global Broad Infrastructure Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 65,385,296 | $ | 97,268,299 | $ | 10,625,750 | $ | 24,452,934 | ||||||||
Net realized gain (loss) | (93,123,409 | ) | (153,969,129 | ) | 2,160,320 | 8,061,112 | ||||||||||
Net increase from payments by affiliates | — | 2,597,250 | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | 436,089,696 | 688,415,180 | (22,882,307 | ) | 72,100,845 | |||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 408,351,583 | 634,311,600 | (10,096,237 | ) | 104,614,891 | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (45,452,413 | ) | (91,591,308 | ) | (10,362,669 | ) | (25,424,557 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (45,452,413 | ) | (91,591,308 | ) | (10,362,669 | ) | (25,424,557 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 474,597,239 | 1,612,772,251 | 23,613,151 | 212,697,031 | ||||||||||||
Cost of shares redeemed | — | (217,108,283 | ) | (29,420,086 | ) | (85,934,569 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 474,597,239 | 1,395,663,968 | (5,806,935 | ) | 126,762,462 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 837,496,409 | 1,938,384,260 | (26,265,841 | ) | 205,952,796 | |||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 4,760,396,681 | $ | 2,822,012,421 | $ | 875,628,445 | $ | 669,675,649 | ||||||||
|
| |||||||||||||||
End of Period | $ | 5,597,893,090 | $ | 4,760,396,681 | $ | 849,362,604 | $ | 875,628,445 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 17,158,498 | $ | (2,774,385 | ) | $ | 3,278,858 | $ | 3,015,777 | |||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 150,700,001 | 103,000,001 | 18,300,001 | 15,400,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 14,250,000 | 55,300,000 | 500,000 | 4,700,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | (7,600,000 | ) | (600,000 | ) | (1,800,000 | ) | |||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 164,950,001 | 150,700,001 | 18,200,001 | 18,300,001 | ||||||||||||
|
|
(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.
20 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Global Quality Real Estate Index Fund | FlexShares® Real Assets Allocation Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 4,126,025 | $ | 3,550,182 | $ | 101,153 | $ | 70,988 | ||||||||
Net realized gain (loss) | (942,693 | ) | (86,200 | ) | (9,241 | ) | 846 | |||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | (857,261 | ) | 19,986,486 | (108,404 | ) | 266,100 | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 2,326,071 | 23,450,468 | (16,492 | ) | 337,934 | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (3,376,748 | ) | (5,694,447 | ) | (102,594 | ) | (71,705 | ) | ||||||||
Net realized gain | — | — | (873 | ) | — | |||||||||||
|
| |||||||||||||||
Total distributions | (3,376,748 | ) | (5,694,447 | ) | (103,467 | ) | (71,705 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 24,648,405 | 30,164,949 | 5,639,600 | 4,770,437 | ||||||||||||
Cost of shares redeemed | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 24,648,405 | 30,164,949 | 5,639,600 | 4,770,437 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 23,597,728 | 47,920,970 | 5,519,641 | 5,036,666 | ||||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 244,969,742 | $ | 197,048,772 | $ | 6,318,284 | $ | 1,281,618 | ||||||||
|
| |||||||||||||||
End of Period | $ | 268,567,470 | $ | 244,969,742 | $ | 11,837,925 | $ | 6,318,284 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 872,245 | $ | 122,968 | $ | (1,441 | ) | $ | — | |||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 3,950,001 | 3,450,001 | 225,001 | 50,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 400,000 | 500,000 | 200,000 | 175,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 4,350,001 | 3,950,001 | 425,001 | 225,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 21 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Quality Dividend Index Fund | FlexShares® Quality Dividend Defensive Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 27,245,728 | $ | 50,724,829 | $ | 4,670,173 | $ | 8,784,830 | ||||||||
Net realized gain (loss) | 46,939,189 | 44,573,416 | 9,542,433 | 5,158,732 | ||||||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | 18,548,795 | 174,511,525 | 85,455 | 32,703,597 | ||||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 92,733,712 | 269,809,770 | 14,298,061 | 46,647,159 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (25,090,425 | ) | (49,628,114 | ) | (4,352,123 | ) | (8,458,570 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (25,090,425 | ) | (49,628,114 | ) | (4,352,123 | ) | (8,458,570 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 53,048,344 | 343,462,008 | 2,183,359 | 41,242,639 | ||||||||||||
Cost of shares redeemed | (85,071,822 | ) | (186,128,276 | ) | (21,803,484 | ) | (18,487,149 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | (32,023,478 | ) | 157,333,732 | (19,620,125 | ) | 22,755,490 | ||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 35,619,809 | 377,515,388 | (9,674,187 | ) | 60,944,079 | |||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 1,815,664,586 | $ | 1,438,149,198 | $ | 313,167,033 | $ | 252,222,954 | ||||||||
|
| |||||||||||||||
End of Period | $ | 1,851,284,395 | $ | 1,815,664,586 | $ | 303,492,846 | $ | 313,167,033 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 7,255,558 | $ | 5,100,255 | $ | 1,293,584 | $ | 975,534 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 42,650,001 | 38,750,001 | 7,450,001 | 6,850,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 1,200,000 | 8,500,000 | 50,000 | 1,050,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (1,900,000 | ) | (4,600,000 | ) | (500,000 | ) | (450,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 41,950,001 | 42,650,001 | 7,000,001 | 7,450,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
22 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Quality Dividend Dynamic Index Fund | FlexShares® International Quality Dividend Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 828,162 | $ | 1,935,005 | $ | 18,986,494 | $ | 30,676,471 | ||||||||
Net realized gain (loss) | 4,746,614 | 5,356,840 | 17,770,895 | 21,660,610 | ||||||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | (2,898,568 | ) | 5,065,870 | (17,564,610 | ) | 83,475,075 | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 2,676,208 | 12,357,715 | 19,192,779 | 135,812,156 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (815,268 | ) | (1,825,259 | ) | (15,082,442 | ) | (28,328,453 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (815,268 | ) | (1,825,259 | ) | (15,082,442 | ) | (28,328,453 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 2,093,800 | 9,329,699 | 106,551,543 | 376,167,377 | ||||||||||||
Cost of shares redeemed | (15,293,050 | ) | (14,270,382 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | (13,199,250 | ) | (4,940,683 | ) | 106,551,543 | 376,167,377 | ||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | (11,338,310 | ) | 5,591,773 | 110,661,880 | 483,651,080 | |||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 58,570,662 | $ | 52,978,889 | $ | 979,701,072 | $ | 496,049,992 | ||||||||
|
| |||||||||||||||
End of Period | $ | 47,232,352 | $ | 58,570,662 | $ | 1,090,362,952 | $ | 979,701,072 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 233,741 | $ | 220,847 | $ | 7,427,220 | $ | 3,523,168 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 1,400,001 | 1,500,001 | 37,300,001 | 22,100,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 50,000 | 250,000 | 4,000,000 | 15,200,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (350,000 | ) | (350,000 | ) | — | — | ||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 1,100,001 | 1,400,001 | 41,300,001 | 37,300,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 23 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® International Quality Dividend Defensive Index Fund | FlexShares® International Quality Dividend Dynamic Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 2,015,675 | $ | 3,424,671 | $ | 1,523,886 | $ | 2,449,832 | ||||||||
Net realized gain (loss) | 1,366,128 | 1,426,337 | 2,860,577 | 1,476,605 | ||||||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | (1,763,697 | ) | 8,052,058 | (1,884,558 | ) | 7,362,594 | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | 1,618,106 | 12,903,066 | 2,499,905 | 11,289,031 | ||||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (1,983,371 | ) | (3,119,837 | ) | (1,161,120 | ) | (2,117,337 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (1,983,371 | ) | (3,119,837 | ) | (1,161,120 | ) | (2,117,337 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 7,592,082 | 14,435,332 | 5,665,182 | 63,846,996 | ||||||||||||
Cost of shares redeemed | — | (6,562,120 | ) | (11,168,854 | ) | — | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 7,592,082 | 7,873,212 | (5,503,672 | ) | 63,846,996 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 7,226,817 | 17,656,441 | (4,164,887 | ) | 73,018,690 | |||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 95,217,148 | $ | 77,560,707 | $ | 91,795,584 | $ | 18,776,894 | ||||||||
|
| |||||||||||||||
End of Period | $ | 102,443,965 | $ | 95,217,148 | $ | 87,630,697 | $ | 91,795,584 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 765,416 | $ | 733,112 | $ | 640,438 | $ | 277,672 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 3,800,001 | 3,500,001 | 3,300,001 | 800,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 300,000 | 600,000 | 200,000 | 2,500,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | — | (300,000 | ) | (400,000 | ) | — | ||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 4,100,001 | 3,800,001 | 3,100,001 | 3,300,001 | ||||||||||||
|
|
(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.
24 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 28,326,756 | $ | 29,898,387 | $ | 12,988,549 | $ | 13,971,379 | ||||||||
Net realized gain (loss) | (15,148,646 | ) | (7,368,691 | ) | (4,737,127 | ) | (151,278 | ) | ||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | (16,997,717 | ) | (14,275,862 | ) | (12,531,587 | ) | (12,381,777 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | (3,819,607 | ) | 8,253,834 | (4,280,165 | ) | 1,438,324 | ||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (22,342,659 | ) | (26,104,812 | ) | (10,617,334 | ) | (12,089,212 | ) | ||||||||
Net realized gain | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Total distributions | (22,342,659 | ) | (26,104,812 | ) | (10,617,334 | ) | (12,089,212 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 157,837,941 | 305,158,033 | 133,911,371 | 189,689,043 | ||||||||||||
Cost of shares redeemed | (108,323,174 | ) | (16,078,914 | ) | (18,468,848 | ) | (11,271,501 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 49,514,767 | 289,079,119 | 115,442,523 | 178,417,542 | ||||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 23,352,501 | 271,228,141 | 100,545,024 | 167,766,654 | ||||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 2,113,130,183 | $ | 1,841,902,042 | $ | 819,372,020 | $ | 651,605,366 | ||||||||
|
| |||||||||||||||
End of Period | $ | 2,136,482,684 | $ | 2,113,130,183 | $ | 919,917,044 | $ | 819,372,020 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 9,718,371 | $ | 3,734,274 | $ | 4,253,382 | $ | 1,882,167 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 85,904,000 | 74,204,000 | 32,700,001 | 25,600,001 | ||||||||||||
Shares issued | — | — | — | — | ||||||||||||
Shares issued in-kind | 6,500,000 | 12,350,000 | 5,400,000 | 7,550,000 | ||||||||||||
Shares redeemed | — | — | — | — | ||||||||||||
Shares redeemed in-kind | (4,450,000 | ) | (650,000 | ) | (750,000 | ) | (450,000 | ) | ||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 87,954,000 | 85,904,000 | 37,350,001 | 32,700,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 25 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Disciplined Duration MBS Index Fund | FlexShares® Credit-Scored US Corporate Bond Index Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 373,982 | $ | 587,968 | $ | 695,389 | $ | 1,028,664 | ||||||||
Net realized gain (loss) | (68,960 | ) | (204,134 | ) | (272,022 | ) | (24,129 | ) | ||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | (814,127 | ) | (635,676 | ) | (1,801,526 | ) | (169,676 | ) | ||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | (509,105 | ) | (251,842 | ) | (1,378,159 | ) | 834,859 | |||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (625,064 | ) | (1,159,790 | ) | (678,059 | ) | (991,097 | ) | ||||||||
Net realized gain | — | — | — | (138,136 | ) | |||||||||||
|
| |||||||||||||||
Total distributions | (625,064 | ) | (1,159,790 | ) | (678,059 | ) | (1,129,233 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 13,986,040 | 7,207,654 | 9,929,909 | 15,235,609 | ||||||||||||
Cost of shares redeemed | (3,539,175 | ) | (9,676,454 | ) | — | — | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 10,446,865 | (2,468,800 | ) | 9,929,909 | 15,235,609 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 9,312,696 | (3,880,432 | ) | 7,873,691 | 14,941,235 | |||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 38,182,972 | $ | 42,063,404 | $ | 50,981,839 | $ | 36,040,604 | ||||||||
|
| |||||||||||||||
End of Period | $ | 47,495,668 | $ | 38,182,972 | $ | 58,855,530 | $ | 50,981,839 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | (145,952 | ) | $ | 105,130 | $ | 125,946 | $ | 108,616 | |||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 1,600,001 | 1,700,001 | 1,000,001 | 700,001 | ||||||||||||
Shares issued | 600,000 | 300,000 | 200,000 | 300,000 | ||||||||||||
Shares issued in-kind | — | — | — | — | ||||||||||||
Shares redeemed | (150,000 | ) | (400,000 | ) | — | — | ||||||||||
Shares redeemed in-kind | — | — | — | — | ||||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 2,050,001 | 1,600,001 | 1,200,001 | 1,000,001 | ||||||||||||
|
|
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
See Accompanying Notes to the Financial Statements.
26 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | FlexShares® Ready Access Variable Income Fund | |||||||||||||||
Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | Six Months Ended April 30, 2018 (Unaudited) | Year Ended October 31, 2017 | |||||||||||||
OPERATIONS |
| |||||||||||||||
Net investment income (loss) | $ | 400,134 | $ | 538,175 | $ | 1,221,657 | $ | 1,830,697 | ||||||||
Net realized gain (loss) | (119,925 | ) | (44,026 | ) | (133,924 | ) | 36,095 | |||||||||
Net increase from payments by affiliates | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) | (1,351,829 | ) | 196,617 | (305,061 | ) | 76,962 | ||||||||||
|
| |||||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||
Resulting from Operations | (1,071,620 | ) | 690,766 | 782,672 | 1,943,754 | |||||||||||
|
| |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Net investment income | (382,848 | ) | (520,832 | ) | (1,186,836 | ) | (1,720,304 | ) | ||||||||
Net realized gain | — | (170,620 | ) | — | — | |||||||||||
|
| |||||||||||||||
Total distributions | (382,848 | ) | (691,452 | ) | (1,186,836 | ) | (1,720,304 | ) | ||||||||
|
| |||||||||||||||
CAPITAL TRANSACTIONS(1) |
| |||||||||||||||
Proceeds from shares issued | 10,468,015 | 7,948,258 | 3,780,809 | 64,102,037 | ||||||||||||
Cost of shares redeemed | — | (2,546,276 | ) | (30,192,802 | ) | (11,331,858 | ) | |||||||||
|
| |||||||||||||||
Net Increase (Decrease) from Capital Transactions | 10,468,015 | 5,401,982 | (26,411,993 | ) | 52,770,179 | |||||||||||
|
| |||||||||||||||
Total Increase (Decrease) in Net Assets | 9,013,547 | 5,401,296 | (26,816,157 | ) | 52,993,629 | |||||||||||
|
| |||||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of Period | $ | 18,858,354 | $ | 13,457,058 | $ | 162,557,133 | $ | 109,563,504 | ||||||||
|
| |||||||||||||||
End of Period | $ | 27,871,901 | $ | 18,858,354 | $ | 135,740,976 | $ | 162,557,133 | ||||||||
|
| |||||||||||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | 78,621 | $ | 61,335 | $ | 232,724 | $ | 197,903 | ||||||||
|
| |||||||||||||||
SHARE TRANSACTIONS |
| |||||||||||||||
Beginning of period | 350,001 | 250,001 | 2,150,001 | 1,450,001 | ||||||||||||
Shares issued | 150,000 | 100,000 | 50,000 | 850,000 | ||||||||||||
Shares issued in-kind | 50,000 | 50,000 | — | — | ||||||||||||
Shares redeemed | — | (50,000 | ) | — | — | |||||||||||
Shares redeemed in-kind | — | — | (400,000 | ) | (150,000 | ) | ||||||||||
|
| |||||||||||||||
Shares Outstanding, End of Period | 550,001 | 350,001 | 1,800,001 | 2,150,001 | ||||||||||||
|
|
(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.
FLEXSHARES SEMIANNUAL REPORT | 27 |
Table of Contents
Statements of Changes in Net Assets (cont.)
FlexShares® Core Select Bond Fund | ||||||||
Six Months Ended April 30, 2018 (Unaudited) | November 18, 2016* through October 31, 2017 | |||||||
OPERATIONS |
| |||||||
Net investment income (loss) | $ | 153,763 | $ | 63,998 | ||||
Net realized gain (loss) | (67,111 | ) | (6,208 | ) | ||||
Net increase from payments by affiliates | — | — | ||||||
Net change in unrealized appreciation (depreciation) | (396,848 | ) | 20,488 | |||||
|
| |||||||
Net Increase (Decrease) in Net Assets | ||||||||
Resulting from Operations | (310,196 | ) | 78,278 | |||||
|
| |||||||
DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||
Net investment income | (156,280 | ) | (72,451 | ) | ||||
Net realized gain | — | — | ||||||
|
| |||||||
Total distributions | (156,280 | ) | (72,451 | ) | ||||
|
| |||||||
CAPITAL TRANSACTIONS(1) |
| |||||||
Proceeds from shares issued | 19,739,908 | 1,876,187 | ||||||
Cost of shares redeemed | (608,373 | ) | (619,651 | ) | ||||
|
| |||||||
Net Increase (Decrease) from Capital Transactions | 19,131,535 | 1,256,536 | ||||||
|
| |||||||
Total Increase (Decrease) in Net Assets | 18,665,059 | 1,262,363 | ||||||
|
| |||||||
NET ASSETS |
| |||||||
Beginning of Period | $ | 3,762,388 | $ | 2,500,025 | (2) | |||
|
| |||||||
End of Period | $ | 22,427,447 | $ | 3,762,388 | ||||
|
| |||||||
Undistributed (accumulated) net investment income (loss) included in end of period net assets | $ | (2,517 | ) | $ | — | |||
|
| |||||||
SHARE TRANSACTIONS |
| |||||||
Beginning of period | 150,001 | 100,001 | (2) | |||||
Shares issued | — | — | ||||||
Shares issued in-kind | 800,000 | 75,000 | ||||||
Shares redeemed | — | — | ||||||
Shares redeemed in-kind | (25,000 | ) | (25,000 | ) | ||||
|
| |||||||
Shares Outstanding, End of Period | 925,001 | 150,001 | ||||||
|
|
* | Commencement of investment operations. |
(1) | Capital transactions may include transaction fees associated with creation and redemption transactions which occurred during the period. See Note 9 to the Financial Statements. |
(2) | Amount includes the initial subscription. |
See Accompanying Notes to the Financial Statements.
28 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
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FLEXSHARES SEMIANNUAL REPORT | 29 |
Table of Contents
FlexShares® Trust
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Morningstar US Market Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 107.50 | $ | 0.95 | (a) | $ | 2.45 | $ | 3.40 | $ | (0.89 | ) | $ | — | $ | — | $ | (0.89 | ) | |||||||||||||
Year ended October 31, 2017 | 88.32 | 1.74 | (a) | 19.13 | 20.87 | (1.69 | ) | — | — | (1.69 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 87.02 | 1.65 | (a) | 2.33 | 3.98 | (2.68 | ) | — | — | (2.68 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 86.19 | 1.58 | (a) | 0.42 | 2.00 | (1.17 | ) | — | — | (1.17 | ) | |||||||||||||||||||||
Year ended October 31, 2014 | 76.56 | 1.16 | (a) | 9.26 | 10.42 | (0.79 | ) | — | — | (0.79 | ) | |||||||||||||||||||||
Year ended October 31, 2013 | 58.70 | 1.09 | (a) | 17.43 | 18.52 | (0.66 | ) | — | — | (0.66 | ) | |||||||||||||||||||||
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 67.51 | 0.85 | (a) | 1.42 | 2.27 | (0.90 | ) | — | — | (0.90 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 55.62 | 1.58 | (a) | 11.91 | 13.49 | (1.60 | ) | — | — | (1.60 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 58.18 | 1.59 | (a) | (1.55 | ) | 0.04 | (2.60 | ) | — | — | (2.60 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 60.74 | 1.51 | (a) | (2.27 | ) | (0.76 | ) | (1.80 | ) | — | — | (1.80 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 61.95 | 1.80 | (a) | (2.29 | ) | (0.49 | ) | (0.72 | ) | — | — | (0.72 | ) | |||||||||||||||||||
Year ended October 31, 2013 | 49.31 | 1.35 | (a) | 11.40 | 12.75 | (0.11 | ) | — | — | (0.11 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
30 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 110.01 |
| 3.16 | % | 3.13 | % | 0.26 | % | 0.25 | % | 1.72 | % | 1.72 | % | 9 | % | $ | 1,199,148 | ||||||||||||||||
107.50 | 23.77 | 23.72 | 0.26 | 0.25 | 1.73 | 1.74 | 22 | 1,150,199 | ||||||||||||||||||||||||||
88.32 | 4.70 | 4.77 | 0.28 | 0.27 | 1.92 | 1.93 | 26 | 830,253 | ||||||||||||||||||||||||||
87.02 | 2.30 | 2.30 | 0.28 | 0.27 | 1.81 | 1.81 | 51 | 761,457 | ||||||||||||||||||||||||||
86.19 | 13.69 | 13.54 | 0.28 | 0.27 | 1.41 | 1.41 | 25 | 741,260 | ||||||||||||||||||||||||||
76.56 | 31.88 | 28.39 | 0.27 | 0.27 | 1.59 | 1.59 | 20 | 447,893 | ||||||||||||||||||||||||||
| 68.88 |
| 3.39 | 2.57 | 0.39 | 0.39 | 2.48 | 2.49 | 13 | 1,115,930 | ||||||||||||||||||||||||
67.51 | 24.58 | 25.38 | 0.40 | 0.39 | 2.57 | 2.57 | 22 | 985,608 | ||||||||||||||||||||||||||
55.62 | 0.20 | 0.80 | 0.43 | 0.42 | 2.91 | 2.92 | 35 | 622,898 | ||||||||||||||||||||||||||
58.18 | (1.26 | ) | (2.34 | ) | 0.43 | 0.42 | 2.52 | 2.53 | 26 | 570,188 | ||||||||||||||||||||||||
60.74 | (0.81 | ) | (0.80 | ) | 0.43 | 0.42 | 2.84 | 2.85 | 16 | 643,893 | ||||||||||||||||||||||||
61.95 | 25.93 | 0.62 | 0.43 | 0.42 | 2.37 | 2.38 | 7 | 309,745 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 31 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 57.38 | $ | 0.38 | (a) | $ | 2.57 | $ | 2.95 | $ | (0.45 | ) | $ | — | $ | — | $ | (0.45 | ) | |||||||||||||
Year ended October 31, 2017 | 47.52 | 1.28 | (a) | 9.80 | 11.08 | (1.22 | ) | — | — | (1.22 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 45.02 | 0.97 | (a) | 3.10 | 4.07 | (1.57 | ) | — | — | (1.57 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 52.75 | 0.92 | (a) | (7.65 | ) | (6.73 | ) | (1.00 | ) | — | — | (1.00 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 52.92 | 1.03 | (a) | (0.77 | ) | 0.26 | (0.43 | ) | — | — | (0.43 | ) | ||||||||||||||||||||
Year ended October 31, 2013 | 49.60 | 1.03 | (a) | 2.34 | 3.37 | (0.05 | ) | — | — | (0.05 | ) | |||||||||||||||||||||
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 29.14 | 0.41 | (a) | (0.24 | ) | 0.17 | (0.56 | ) | — | — | (0.56 | ) | ||||||||||||||||||||
Year ended October 31, 2017 | 23.97 | 0.59 | (a) | 5.27 | 5.86 | (0.69 | ) | — | — | (0.69 | ) | |||||||||||||||||||||
For the period 11/09/15* through 10/31/16 | 25.00 | 1.04 | (a) | (0.96 | ) | 0.08 | (0.98 | ) | — | (0.13 | ) | (1.11 | ) | |||||||||||||||||||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 30.58 | 0.24 | (a) | 0.49 | 0.73 | (0.24 | ) | — | — | (0.24 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 25.82 | 0.63 | (a) | 4.77 | 5.40 | (0.64 | ) | — | — | (0.64 | ) | |||||||||||||||||||||
For the period 11/09/15* through 10/31/16 | 25.00 | 0.59 | (a) | 1.10 | 1.69 | (0.87 | ) | — | — | (0.87 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
32 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 59.88 |
| 5.26 | % | 3.91 | % | 0.59 | % | 0.59 | % | 1.27 | % | 1.28 | % | 14 | % | $ | 718,530 | ||||||||||||||||
57.38 | 23.56 | 23.47 | 0.60 | 0.59 | 2.44 | 2.44 | 34 | 568,071 | ||||||||||||||||||||||||||
47.52 | 9.41 | 10.65 | 0.66 | 0.65 | 2.23 | 2.23 | 34 | 299,351 | ||||||||||||||||||||||||||
45.02 | (12.91 | ) | (13.43 | ) | 0.66 | 0.65 | 1.86 | 1.87 | 30 | 198,073 | ||||||||||||||||||||||||
52.75 | 0.52 | 0.52 | 0.66 | 0.65 | 1.96 | 1.97 | 19 | 258,481 | ||||||||||||||||||||||||||
52.92 | 6.80 | (14.20 | ) | 0.65 | 0.65 | 2.01 | 2.01 | 20 | 158,759 | |||||||||||||||||||||||||
| 28.75 |
| 0.57 | 0.22 | 0.46 | (i) | 0.05 | (i) | 2.47 | 2.88 | 3 | 9,343 | ||||||||||||||||||||||
29.14 | 24.75 | 24.84 | 0.46 | (i) | 0.05 | (i) | 1.78 | 2.18 | 6 | 18,941 | ||||||||||||||||||||||||
| 23.97 |
| 0.59 | 0.97 | 0.55 | (i) | 0.05 | (i) | 4.12 | 4.62 | 11 | 3,595 | ||||||||||||||||||||||
| 31.07 |
| 2.39 | 2.53 | 0.65 | (i) | 0.05 | (i) | 0.93 | 1.53 | 2 | 35,725 | ||||||||||||||||||||||
30.58 | 21.16 | 20.75 | 0.65 | (i) | 0.05 | (i) | 1.67 | 2.27 | 4 | 41,285 | ||||||||||||||||||||||||
| 25.82 |
| 7.04 | 7.12 | 0.72 | (i) | 0.05 | (i) | 1.81 | 2.47 | 4 | 33,567 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 33 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® US Quality Large Cap Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 31.83 | $ | 0.27 | (a) | $ | 1.63 | $ | 1.90 | $ | (0.23 | ) | $ | — | $ | — | $ | (0.23 | ) | |||||||||||||
Year ended October 31, 2017 | 26.15 | 0.49 | (a) | 5.65 | 6.14 | (0.46 | ) | — | — | (0.46 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 26.62 | 0.50 | (a) | (0.47 | ) | 0.03 | (0.50 | ) | — | — | (0.50 | ) | ||||||||||||||||||||
For the period 09/23/15* through 10/31/15 | 25.00 | 0.03 | (a) | 1.59 | 1.62 | — | — | — | — | |||||||||||||||||||||||
FlexShares® STOXX® US ESG Impact Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 60.49 | 0.54 | (a) | 2.21 | 2.75 | (0.52 | ) | — | — | (0.52 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 49.96 | 1.05 | (a) | 10.45 | 11.50 | (0.97 | ) | — | — | (0.97 | ) | |||||||||||||||||||||
For the period 07/13/16* through 10/31/16 | 50.00 | 0.27 | (a) | (0.15 | ) | 0.12 | (0.16 | ) | — | — | (0.16 | ) | ||||||||||||||||||||
FlexShares® STOXX® Global ESG Impact Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 91.97 | 1.03 | (a) | 1.92 | 2.95 | (0.60 | ) | — | — | (0.60 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 75.52 | 1.56 | (a) | 16.67 | 18.23 | (1.78 | ) | — | — | (1.78 | ) | |||||||||||||||||||||
For the period 07/13/16* through 10/31/16 | 75.00 | 0.41 | (a) | 0.34 | 0.75 | (0.23 | ) | — | — | (0.23 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
34 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 33.50 |
| 5.98 | % | 5.65 | % | 0.33 | % | 0.32 | % | 1.62 | % | 1.63 | % | 39 | % | $ | 42,712 | ||||||||||||||||
31.83 | 23.65 | 24.08 | 0.34 | 0.32 | 1.65 | 1.67 | 64 | 27,055 | ||||||||||||||||||||||||||
26.15 | 0.12 | 0.12 | 0.38 | 0.32 | 1.87 | 1.93 | 59 | 6,538 | ||||||||||||||||||||||||||
| 26.62 |
| 6.48 | 6.48 | 0.42 | 0.32 | 1.10 | 1.20 | 3 | 2,662 | ||||||||||||||||||||||||
| 62.72 |
| 4.53 | 4.41 | 0.34 | 0.32 | 1.69 | 1.71 | 35 | 23,520 | ||||||||||||||||||||||||
60.49 | 23.19 | 23.30 | 0.35 | 0.32 | 1.82 | 1.85 | 67 | 13,610 | ||||||||||||||||||||||||||
| 49.96 |
| 0.24 | 0.28 | 0.37 | 0.32 | 1.75 | 1.80 | 20 | 4,996 | ||||||||||||||||||||||||
| 94.32 |
| 3.20 | 3.62 | 0.43 | 0.42 | 2.18 | 2.19 | 45 | 66,025 | ||||||||||||||||||||||||
91.97 | 24.37 | 24.55 | 0.45 | 0.42 | 1.81 | 1.83 | 64 | 32,189 | ||||||||||||||||||||||||||
| 75.52 |
| 1.00 | 1.03 | 0.45 | 0.42 | 1.74 | 1.77 | 22 | 7,552 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 35 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 31.59 | $ | 0.41 | (a) | $ | 2.22 | $ | 2.63 | $ | (0.28 | ) | $ | — | $ | — | $ | (0.28 | ) | |||||||||||||
Year ended October 31, 2017 | 27.40 | 0.70 | (a) | 4.13 | 4.83 | (0.64 | ) | — | — | (0.64 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 25.52 | 0.55 | (a) | 2.73 | 3.28 | (1.40 | ) | — | — | (1.40 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 33.18 | 0.94 | (a) | (7.74 | ) | (6.80 | ) | (0.86 | ) | — | — | (0.86 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 34.71 | 0.80 | (a) | (1.63 | ) | (0.83 | ) | (0.70 | ) | — | — | (0.70 | ) | |||||||||||||||||||
Year ended October 31, 2013 | 35.19 | 0.87 | (a) | (0.98 | ) | (0.11 | ) | (0.37 | ) | — | — | (0.37 | ) | |||||||||||||||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 47.85 | 0.59 | (a) | (1.19 | ) | (0.60 | ) | (0.58 | ) | — | — | (0.58 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 43.49 | 1.37 | (a) | 4.40 | 5.77 | (1.41 | ) | — | — | (1.41 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 43.30 | 1.34 | (a) | (0.02 | )(g) | 1.32 | (1.13 | ) | — | — | (1.13 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 45.84 | 1.13 | (a) | (2.67 | ) | (1.54 | ) | (1.00 | ) | — | — | (1.00 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 41.62 | 1.73 | (a) | 3.65 | 5.38 | (1.16 | ) | — | — | (1.16 | ) | |||||||||||||||||||||
For the period 10/08/13* through 10/31/13 | 40.00 | 0.01 | (a) | 1.61 | 1.62 | — | — | — | — |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
36 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 33.94 |
| 8.38 | % | 8.11 | % | 0.46 | % | 0.46 | % | 2.51 | % | 2.52 | % | 12 | % | $ | 5,597,893 | ||||||||||||||||
31.59 | 17.81 | 17.97 | 0.47 | 0.46 | 2.36 | 2.36 | 18 | 4,760,397 | ||||||||||||||||||||||||||
27.40 | 13.84 | 14.05 | 0.49 | 0.48 | 2.20 | 2.20 | 18 | 2,822,012 | ||||||||||||||||||||||||||
25.52 | (20.97 | ) | (21.05 | ) | 0.49 | 0.48 | 3.17 | 3.17 | 13 | 2,004,234 | ||||||||||||||||||||||||
33.18 | (2.44 | ) | (2.44 | ) | 0.49 | 0.48 | 2.27 | 2.27 | 11 | 2,874,838 | ||||||||||||||||||||||||
34.71 | (0.33 | ) | (0.61 | ) | 0.48 | 0.48 | 2.56 | 2.56 | 8 | 2,764,535 | ||||||||||||||||||||||||
| 46.67 |
| (1.27 | ) | (1.51 | ) | 0.47 | 0.47 | 2.50 | 2.50 | 6 | 849,363 | ||||||||||||||||||||||
47.85 | 13.44 | 13.23 | 0.48 | 0.47 | 2.97 | 2.98 | 12 | 875,628 | ||||||||||||||||||||||||||
43.49 | 3.09 | 3.26 | 0.48 | 0.47 | 3.09 | 3.10 | 14 | 669,676 | ||||||||||||||||||||||||||
43.30 | (3.40 | ) | (4.03 | ) | 0.48 | 0.47 | 2.52 | 2.53 | 15 | 467,681 | ||||||||||||||||||||||||
45.84 | 13.02 | 13.62 | 0.48 | 0.47 | 3.87 | 3.88 | 17 | 240,664 | ||||||||||||||||||||||||||
| 41.62 |
| 4.05 | 4.20 | 0.52 | 0.47 | 0.32 | 0.37 | 1 | 4,163 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 37 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Global Quality Real Estate Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 62.02 | $ | 0.98 | (a) | $ | (0.42 | ) | $ | 0.56 | $ | (0.84 | ) | $ | — | $ | — | $ | (0.84 | ) | ||||||||||||
Year ended October 31, 2017 | 57.12 | 0.99 | (a) | 5.54 | 6.53 | (1.63 | ) | — | — | (1.63 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 57.47 | 1.90 | (a) | (0.58 | ) | 1.32 | (1.67 | ) | — | — | (1.67 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 55.24 | 1.36 | (a) | 2.25 | 3.61 | (1.38 | ) | — | — | (1.38 | ) | |||||||||||||||||||||
For the period 11/05/13* through 10/31/14 | 50.00 | 1.65 | (a) | 4.67 | 6.32 | (1.08 | ) | — | — | (1.08 | ) | |||||||||||||||||||||
FlexShares® Real Assets Allocation Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 28.08 | 0.30 | (a) | (0.19 | ) | 0.11 | (0.34 | ) | 0.00 | (h) | — | (0.34 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 25.63 | 0.66 | (a) | 2.54 | 3.20 | (0.75 | ) | — | — | (0.75 | ) | |||||||||||||||||||||
For the period 11/23/15* through 10/31/16 | 25.00 | 0.86 | (a) | 0.51 | (g) | 1.37 | (0.74 | ) | — | — | (0.74 | ) | ||||||||||||||||||||
FlexShares® Quality Dividend Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 42.57 | 0.64 | (a) | 1.50 | 2.14 | (0.58 | ) | — | — | (0.58 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 37.11 | 1.23 | (a) | 5.43 | 6.66 | (1.20 | ) | — | — | (1.20 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 35.99 | 1.23 | (a) | 1.03 | 2.26 | (1.14 | ) | — | — | (1.14 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 35.77 | 1.08 | (a) | 0.14 | 1.22 | (1.00 | ) | — | — | (1.00 | ) | |||||||||||||||||||||
Year ended October 31, 2014 | 32.15 | 1.02 | (a) | 3.62 | 4.64 | (1.02 | ) | — | — | (1.02 | ) | |||||||||||||||||||||
For the period 12/14/12* through 10/31/13 | 25.00 | 0.83 | (a) | 6.78 | 7.61 | (0.46 | ) | — | — | (0.46 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
38 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 61.74 |
| 0.91 | % | 0.68 | % | 0.46 | % | 0.45 | % | 3.22 | % | 3.23 | % | 30 | % | $ | 268,567 | ||||||||||||||||
62.02 | 11.71 | 11.71 | 0.46 | 0.45 | 1.67 | 1.67 | 64 | 244,970 | ||||||||||||||||||||||||||
57.12 | 2.28 | 2.44 | 0.46 | 0.45 | 3.26 | 3.27 | 57 | 197,049 | ||||||||||||||||||||||||||
57.47 | 6.60 | 5.93 | 0.46 | 0.45 | 2.39 | 2.40 | 81 | 132,184 | ||||||||||||||||||||||||||
| 55.24 |
| 12.79 | 13.51 | 0.47 | 0.45 | 3.16 | 3.18 | 44 | 58,003 | ||||||||||||||||||||||||
| 27.85 |
| 0.39 | 0.21 | 0.60 | (i) | 0.11 | (i) | 1.69 | 2.18 | 3 | 11,838 | ||||||||||||||||||||||
28.08 | 12.73 | 13.05 | 0.65 | (i) | 0.11 | (i) | 1.88 | 2.42 | 11 | 6,318 | ||||||||||||||||||||||||
| 25.63 |
| 5.56 | 5.60 | 0.72 | (i) | 0.11 | (i) | 3.03 | 3.64 | 11 | 1,282 | ||||||||||||||||||||||
| 44.13 |
| 5.02 | 5.04 | 0.37 | 0.37 | 2.87 | 2.88 | 27 | 1,851,284 | ||||||||||||||||||||||||
42.57 | 18.10 | 18.03 | 0.38 | 0.37 | 3.00 | 3.00 | 89 | 1,815,665 | ||||||||||||||||||||||||||
37.11 | 6.41 | 6.43 | 0.38 | 0.37 | 3.38 | 3.38 | 85 | 1,438,149 | ||||||||||||||||||||||||||
35.99 | 3.43 | 3.52 | 0.38 | 0.37 | 2.99 | 2.99 | 86 | 703,615 | ||||||||||||||||||||||||||
35.77 | 14.61 | 14.47 | 0.38 | 0.37 | 2.99 | 3.00 | 67 | 586,667 | ||||||||||||||||||||||||||
| 32.15 |
| 30.67 | 30.79 | 0.38 | 0.37 | 3.16 | 3.17 | 54 | 282,930 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 39 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Quality Dividend Defensive Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 42.04 | $ | 0.65 | (a) | $ | 1.27 | $ | 1.92 | $ | (0.60 | ) | $ | — | $ | — | $ | (0.60 | ) | |||||||||||||
Year ended October 31, 2017 | 36.82 | 1.18 | (a) | 5.18 | 6.36 | (1.14 | ) | — | — | (1.14 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 35.81 | 1.11 | (a) | 0.99 | 2.10 | (1.09 | ) | — | — | (1.09 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 34.99 | 1.03 | (a) | 0.72 | 1.75 | (0.93 | ) | — | — | (0.93 | ) | |||||||||||||||||||||
Year ended October 31, 2014 | 31.42 | 0.96 | (a) | 3.62 | 4.58 | (1.01 | ) | — | — | (1.01 | ) | |||||||||||||||||||||
For the period 12/14/12* through 10/31/13 | 25.00 | 0.79 | (a) | 6.05 | 6.84 | (0.42 | ) | — | — | (0.42 | ) | |||||||||||||||||||||
FlexShares® Quality Dividend Dynamic Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 41.84 | 0.63 | (a) | 1.07 | 1.70 | (0.60 | ) | — | — | (0.60 | ) | |||||||||||||||||||||
Year ended October 31, 2017 | 35.32 | 1.19 | (a) | 6.45 | 7.64 | (1.12 | ) | — | — | (1.12 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 35.14 | 1.11 | (a) | 0.31 | (g) | 1.42 | (1.24 | ) | — | — | (1.24 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 35.83 | 1.14 | (a) | (0.82 | ) | 0.32 | (1.01 | ) | — | — | (1.01 | ) | ||||||||||||||||||||
Year ended October 31, 2014 | 32.06 | 0.98 | (a) | 3.72 | 4.70 | (0.93 | ) | — | — | (0.93 | ) | |||||||||||||||||||||
For the period 12/14/12* through 10/31/13 | 25.00 | 0.84 | (a) | 6.77 | 7.61 | (0.55 | ) | — | — | (0.55 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
40 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 43.36 |
| 4.54 | % | 4.59 | % | 0.38 | % | 0.37 | % | 2.97 | % | 2.97 | % | 40 | % | $ | 303,493 | ||||||||||||||||
42.04 | 17.44 | 17.41 | 0.38 | 0.37 | 2.94 | 2.95 | 74 | 313,167 | ||||||||||||||||||||||||||
36.82 | 5.96 | 5.96 | 0.38 | 0.37 | 3.09 | 3.10 | 72 | 252,223 | ||||||||||||||||||||||||||
35.81 | 5.04 | 5.13 | 0.38 | 0.37 | 2.87 | 2.88 | 92 | 191,606 | ||||||||||||||||||||||||||
34.99 | 14.79 | 14.47 | 0.38 | 0.37 | 2.88 | 2.89 | 73 | 122,462 | ||||||||||||||||||||||||||
| 31.42 |
| 27.54 | 27.79 | 0.38 | 0.37 | 3.02 | 3.03 | 54 | 43,983 | ||||||||||||||||||||||||
| 42.94 |
| 4.04 | 4.16 | 0.38 | 0.37 | 2.91 | 2.92 | 29 | 47,232 | ||||||||||||||||||||||||
41.84 | 21.81 | 21.59 | 0.38 | 0.37 | 2.99 | 3.00 | 63 | 58,571 | ||||||||||||||||||||||||||
35.32 | 4.16 | 4.43 | 0.38 | 0.37 | 3.23 | 3.25 | 69 | 52,979 | ||||||||||||||||||||||||||
35.14 | 0.89 | 0.78 | 0.38 | 0.37 | 3.15 | 3.16 | 87 | 73,804 | ||||||||||||||||||||||||||
35.83 | 14.78 | 14.68 | 0.38 | 0.37 | 2.82 | 2.84 | 75 | 93,151 | ||||||||||||||||||||||||||
| 32.06 |
| 30.69 | 30.74 | 0.38 | 0.37 | 3.22 | 3.23 | 67 | 12,825 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 41 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® International Quality Dividend Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 26.27 | $ | 0.48 | (a) | $ | 0.04 | $ | 0.52 | $ | (0.39 | ) | $ | — | $ | — | $ | (0.39 | ) | |||||||||||||
Year ended October 31, 2017 | 22.45 | 1.06 | (a) | 3.69 | 4.75 | (0.93 | ) | — | — | (0.93 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 23.03 | 0.92 | (a) | (0.68 | ) | 0.24 | (0.82 | ) | — | — | (0.82 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 26.15 | 1.01 | (a) | (3.18 | ) | (2.17 | ) | (0.95 | ) | — | — | (0.95 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 27.00 | 1.25 | (a) | (1.06 | ) | 0.19 | (1.04 | ) | — | — | (1.04 | ) | ||||||||||||||||||||
For the period 04/12/13* through 10/31/13 | 25.00 | 0.46 | (a) | 1.82 | 2.28 | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||||
FlexShares® International Quality Dividend Defensive Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 25.06 | 0.52 | (a) | (0.07 | ) | 0.45 | (0.52 | ) | — | — | (0.52 | ) | ||||||||||||||||||||
Year ended October 31, 2017 | 22.16 | 0.99 | (a) | 2.81 | 3.80 | (0.90 | ) | — | — | (0.90 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 22.54 | 0.83 | (a) | (0.35 | ) | 0.48 | (0.86 | ) | — | — | (0.86 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 25.55 | 0.94 | (a) | (3.04 | ) | (2.10 | ) | (0.91 | ) | — | — | (0.91 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 26.66 | 1.23 | (a) | (1.32 | ) | (0.09 | ) | (1.02 | ) | — | — | (1.02 | ) | |||||||||||||||||||
For the period 04/12/13* through 10/31/13 | 25.00 | 0.44 | (a) | 1.58 | 2.02 | (0.36 | ) | — | — | (0.36 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
42 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 26.40 |
| 1.98 | % | 1.25 | % | 0.47 | % | 0.47 | % | 3.65 | % | 3.65 | % | 32 | % | $ | 1,090,363 | ||||||||||||||||
26.27 | 21.50 | 21.80 | 0.48 | 0.47 | 4.27 | 4.28 | 69 | 979,701 | ||||||||||||||||||||||||||
22.45 | 1.16 | 2.05 | 0.48 | 0.47 | 4.17 | 4.18 | 68 | 496,050 | ||||||||||||||||||||||||||
23.03 | (8.45 | ) | (9.95 | ) | 0.48 | 0.47 | 4.08 | 4.09 | 77 | 430,590 | ||||||||||||||||||||||||
26.15 | 0.53 | 1.11 | 0.48 | 0.47 | 4.56 | 4.57 | 61 | 329,485 | ||||||||||||||||||||||||||
| 27.00 |
| 9.22 | 9.58 | 0.48 | 0.47 | 3.24 | 3.25 | 26 | 75,610 | ||||||||||||||||||||||||
| 24.99 |
| 1.79 | 0.77 | 0.48 | 0.47 | 4.08 | 4.09 | 34 | 102,444 | ||||||||||||||||||||||||
25.06 | 17.45 | 17.69 | 0.48 | 0.47 | 4.18 | 4.19 | 72 | 95,217 | ||||||||||||||||||||||||||
22.16 | 2.24 | 3.39 | 0.48 | 0.47 | 3.78 | 3.79 | 73 | 77,561 | ||||||||||||||||||||||||||
22.54 | (8.37 | ) | (9.81 | ) | 0.48 | 0.47 | 3.86 | 3.87 | 77 | 87,893 | ||||||||||||||||||||||||
25.55 | (0.51 | ) | (0.33 | ) | 0.48 | 0.47 | 4.58 | 4.59 | 69 | 66,441 | ||||||||||||||||||||||||
| 26.66 |
| 8.20 | 8.85 | 0.49 | 0.47 | 3.16 | 3.18 | 27 | 15,999 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 43 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® International Quality Dividend Dynamic Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 27.82 | $ | 0.50 | (a) | $ | 0.34 | $ | 0.84 | $ | (0.39 | ) | $ | — | $ | — | $ | (0.39 | ) | |||||||||||||
Year ended October 31, 2017 | 23.47 | 1.11 | (a) | 4.08 | 5.19 | (0.84 | ) | — | — | (0.84 | ) | |||||||||||||||||||||
Year ended October 31, 2016 | 23.82 | 0.83 | (a) | (0.13 | ) | 0.70 | (0.98 | ) | — | (0.07 | ) | (1.05 | ) | |||||||||||||||||||
Year ended October 31, 2015 | 26.50 | 0.88 | (a) | (2.50 | ) | (1.62 | ) | (1.06 | ) | — | — | (1.06 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 27.34 | 0.99 | (a) | (1.00 | ) | (0.01 | ) | (0.83 | ) | — | — | (0.83 | ) | |||||||||||||||||||
For the period 04/12/13* through 10/31/13 | 25.00 | 0.50 | (a) | 2.35 | 2.85 | (0.51 | ) | — | — | (0.51 | ) | |||||||||||||||||||||
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 24.60 | 0.33 | (a) | (0.38 | ) | (0.05 | ) | (0.26 | ) | — | — | (0.26 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 24.82 | 0.37 | (a) | (0.27 | ) | 0.10 | (0.32 | ) | — | — | (0.32 | ) | ||||||||||||||||||||
Year ended October 31, 2016 | 24.38 | 0.15 | (a) | 0.47 | 0.62 | (0.16 | ) | — | (0.02 | ) | (0.18 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 24.73 | (0.10 | )(a) | (0.23 | ) | (0.33 | ) | — | — | (0.02 | ) | (0.02 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 24.97 | 0.10 | (a) | (0.15 | ) | (0.05 | ) | (0.10 | ) | — | (0.09 | ) | (0.19 | ) | ||||||||||||||||||
Year ended October 31, 2013 | 25.43 | 0.03 | (a) | (0.38 | ) | (0.35 | ) | (0.05 | ) | (0.01 | ) | (0.05 | ) | (0.11 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
44 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 28.27 |
| 3.04 | % | 2.31 | % | 0.48 | % | 0.47 | % | 3.56 | % | 3.57 | % | 34 | % | $ | 87,631 | ||||||||||||||||
27.82 | 22.37 | 22.91 | 0.48 | 0.47 | 4.19 | 4.20 | 76 | 91,796 | ||||||||||||||||||||||||||
23.47 | 3.17 | 3.96 | 0.49 | 0.47 | 3.70 | 3.72 | 75 | 18,777 | ||||||||||||||||||||||||||
23.82 | (6.28 | ) | (8.00 | ) | 0.48 | 0.47 | 3.43 | 3.43 | 89 | 35,726 | ||||||||||||||||||||||||
26.50 | (0.18 | ) | 0.80 | 0.49 | 0.47 | 3.55 | 3.58 | 45 | 113,945 | |||||||||||||||||||||||||
| 27.34 |
| 11.59 | 11.64 | 0.48 | 0.47 | 3.54 | 3.55 | 31 | 8,203 | ||||||||||||||||||||||||
| 24.29 |
| (0.21 | ) | (0.21 | ) | 0.18 | 0.18 | 2.74 | 2.74 | 66 | 2,136,483 | ||||||||||||||||||||||
24.60 | 0.42 | 0.46 | 0.21 | 0.20 | 1.49 | 1.50 | 134 | 2,113,130 | ||||||||||||||||||||||||||
24.82 | 2.55 | 2.55 | 0.21 | 0.20 | 0.62 | 0.63 | 105 | 1,841,902 | ||||||||||||||||||||||||||
24.38 | (1.34 | ) | (1.46 | ) | 0.21 | 0.20 | (0.40 | ) | (0.39 | ) | 83 | 1,978,311 | ||||||||||||||||||||||
24.73 | (0.22 | ) | (0.10 | ) | 0.21 | 0.20 | 0.40 | 0.41 | 179 | 2,246,873 | ||||||||||||||||||||||||
24.97 | (1.41 | ) | (1.45 | ) | 0.20 | 0.20 | 0.11 | 0.11 | 125 | 1,975,018 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 45 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 25.06 | $ | 0.36 | (a) | $ | (0.48 | ) | $ | (0.12 | ) | $ | (0.31 | ) | $ | — | $ | — | $ | (0.31 | ) | |||||||||||
Year ended October 31, 2017 | 25.45 | 0.47 | (a) | (0.45 | ) | 0.02 | (0.41 | ) | — | — | (0.41 | ) | ||||||||||||||||||||
Year ended October 31, 2016 | 24.56 | 0.30 | (a) | 0.88 | 1.18 | (0.27 | ) | — | (0.02 | ) | (0.29 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 24.87 | 0.05 | (a) | (0.30 | ) | (0.25 | ) | (0.05 | ) | — | (0.01 | ) | (0.06 | ) | ||||||||||||||||||
Year ended October 31, 2014 | 25.29 | 0.21 | (a) | (0.32 | ) | (0.11 | ) | (0.24 | ) | — | (0.07 | ) | (0.31 | ) | ||||||||||||||||||
Year ended October 31, 2013 | 26.30 | 0.08 | (a) | (0.91 | ) | (0.83 | ) | (0.08 | ) | (0.10 | ) | — | (0.18 | ) | ||||||||||||||||||
FlexShares® Disciplined Duration MBS Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 23.86 | 0.23 | (a) | (0.53 | ) | (0.30 | ) | (0.39 | ) | — | — | (0.39 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 24.74 | 0.39 | (a) | (0.50 | ) | (0.11 | ) | (0.77 | ) | — | — | (0.77 | ) | |||||||||||||||||||
Year ended October 31, 2016 | 24.87 | 0.45 | (a) | 0.29 | 0.74 | (0.87 | ) | — | — | (0.87 | ) | |||||||||||||||||||||
Year ended October 31, 2015 | 25.12 | 0.37 | (a) | 0.06 | (g) | 0.43 | (0.68 | ) | 0.00 | (h) | — | (0.68 | ) | |||||||||||||||||||
For the period 09/03/14* through 10/31/14 | 25.00 | 0.09 | (a) | 0.09 | 0.18 | (0.06 | ) | — | — | (0.06 | ) | |||||||||||||||||||||
FlexShares® Credit-Scored US Corporate Bond Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 50.98 | 0.66 | (a) | (1.94 | ) | (1.28 | ) | (0.65 | ) | — | — | (0.65 | ) | |||||||||||||||||||
Year ended October 31, 2017 | 51.49 | 1.26 | (a) | (0.34 | ) | 0.92 | (1.23 | ) | (0.20 | ) | — | (1.43 | ) | |||||||||||||||||||
Year ended October 31, 2016 | 50.32 | 1.21 | (a) | 1.13 | 2.34 | (1.17 | ) | — | — | (1.17 | ) | |||||||||||||||||||||
For the period 11/12/14* through 10/31/15 | 50.00 | 1.12 | (a) | 0.18 | 1.30 | (0.98 | ) | — | — | (0.98 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
46 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 24.63 |
| (0.50 | )% | (0.50 | )% | 0.18 | % | 0.18 | % | 2.94 | % | 2.95 | % | 50 | % | $ | 919,917 | ||||||||||||||||
25.06 | 0.08 | 0.08 | 0.21 | 0.20 | 1.86 | 1.87 | 87 | 819,372 | ||||||||||||||||||||||||||
25.45 | 4.81 | 4.64 | 0.21 | 0.20 | 1.18 | 1.19 | 72 | 651,605 | ||||||||||||||||||||||||||
24.56 | (1.00 | ) | (1.04 | ) | 0.21 | 0.20 | 0.19 | 0.20 | 113 | 432,210 | ||||||||||||||||||||||||
24.87 | (0.49 | ) | (0.25 | ) | 0.21 | 0.20 | 0.82 | 0.83 | 150 | 308,335 | ||||||||||||||||||||||||
25.29 | (3.17 | ) | (3.32 | ) | 0.20 | 0.20 | 0.30 | 0.30 | 151 | 389,483 | ||||||||||||||||||||||||
| 23.17 |
| (1.28 | ) | (1.19 | ) | 0.21 | 0.20 | 1.95 | 1.96 | 32 | 47,496 | ||||||||||||||||||||||
23.86 | (0.44 | ) | (0.53 | ) | 0.21 | 0.20 | 1.61 | 1.62 | 61 | 38,183 | ||||||||||||||||||||||||
24.74 | 3.02 | 2.69 | 0.21 | — | (j) | 1.62 | 1.83 | (j) | 89 | 42,063 | ||||||||||||||||||||||||
24.87 | 1.74 | 2.02 | 0.22 | 0.20 | 1.44 | 1.46 | 179 | 23,627 | ||||||||||||||||||||||||||
| 25.12 |
| 0.72 | 0.76 | 0.27 | 0.20 | 2.18 | 2.26 | 23 | 5,025 | ||||||||||||||||||||||||
| 49.05 |
| (2.55 | ) | (2.74 | ) | 0.23 | 0.22 | 2.65 | 2.66 | 35 | 58,856 | ||||||||||||||||||||||
50.98 | 1.85 | 1.99 | 0.23 | 0.22 | 2.48 | 2.49 | 65 | 50,982 | ||||||||||||||||||||||||||
51.49 | 4.71 | 4.70 | 0.24 | 0.22 | 2.34 | 2.36 | 59 | 36,041 | ||||||||||||||||||||||||||
| 50.32 |
| 2.61 | 2.78 | 0.26 | 0.22 | 2.26 | 2.30 | 69 | 12,581 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 47 |
Table of Contents
FlexShares® Trust
Financial Highlights
PER SHARE | ||||||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net Investment Income (loss) | Net Realized and Unrealized Gain (Loss) | Total from Operations(b)(c) | Net Investment income | From Net Realized Gains | Tax return of capital | Total | |||||||||||||||||||||||||
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | $ | 53.88 | $ | 1.02 | (a) | $ | (3.20 | ) | $ | (2.18 | ) | $ | (1.02 | ) | $ | — | $ | — | $ | (1.02 | ) | |||||||||||
Year ended October 31, 2017 | 53.83 | 2.06 | (a) | 0.74 | 2.80 | (2.07 | ) | (0.68 | ) | — | (2.75 | ) | ||||||||||||||||||||
Year ended October 31, 2016 | 50.29 | 2.14 | (a) | 3.56 | 5.70 | (2.16 | ) | — | — | (2.16 | ) | |||||||||||||||||||||
For the period 09/23/15* through 10/31/15 | 50.00 | 0.23 | (a) | 0.06 | 0.29 | — | — | — | — | |||||||||||||||||||||||
FlexShares® Ready Access Variable Income Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 75.61 | 0.64 | (a) | (0.22 | ) | 0.42 | (0.62 | ) | — | — | (0.62 | ) | ||||||||||||||||||||
Year ended October 31, 2017 | 75.56 | 0.89 | (a) | 0.00 | (h) | 0.89 | (0.84 | ) | — | — | (0.84 | ) | ||||||||||||||||||||
Year ended October 31, 2016 | 75.36 | 0.65 | (a) | 0.23 | 0.88 | (0.63 | ) | (0.05 | ) | — | (0.68 | ) | ||||||||||||||||||||
Year ended October 31, 2015 | 75.61 | 0.43 | (a) | (0.15 | ) | 0.28 | (0.42 | ) | (0.11 | ) | — | (0.53 | ) | |||||||||||||||||||
Year ended October 31, 2014 | 75.32 | 0.39 | (a) | 0.29 | 0.68 | (0.39 | ) | — | — | (0.39 | ) | |||||||||||||||||||||
Year ended October 31, 2013 | 74.97 | 0.36 | (a) | 0.27 | 0.63 | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||||
FlexShares® Core Select Bond Fund | ||||||||||||||||||||||||||||||||
Six Months ended April 30, 2018 (Unaudited) | 25.08 | 0.29 | (a) | (0.80 | ) | (0.51 | ) | (0.32 | ) | — | — | (0.32 | ) | |||||||||||||||||||
For the period 11/18/16* through 10/31/17 | 25.00 | 0.55 | (a) | 0.15 | 0.70 | (0.62 | ) | — | — | (0.62 | ) |
* | Commencement of investment operations. |
(a) | Net investment income per share is based on average shares outstanding. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value. |
(e) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns. |
(f) | In-kind transactions are not included in portfolio turnover calculations. |
(g) | The amount shown for a share outstanding throughout the period is directionally inconsistent with aggregate net realized and unrealized for the period as presented in the financial statements. |
(h) | Per share amount is less than $0.005. |
(i) | The Fund indirectly bears its proportionate share of fees and expenses incurred by the Underlying Fund(s) in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(j) | The Expenses net of reimbursements and Net investment Income (Loss) net of reimbursement ratios include a voluntary reimbursement of advisory fees made by JPMorgan Chase Bank, N.A. Absent this additional reimbursement, Expenses net of reimbursements would have increased by 0.20% and the Net investment Income (Loss) net of reimbursement would have decreased by 0.20%. |
(k) | Northern Trust Investments, Inc. reimbursed the Funds for losses incurred related to an error. The impact was an increase of $0.02 to the net realized and unrealized gain (loss) on investments per share and an increase of 0.06% to the total return of the FlexShares Morningstar Global Upstream Natural Resources Index Fund. For the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund and FlexShares STOXX Global ESG Impact Index Fund, the impact to the net realized and unrealized gain (loss) on investments per share amount is less than $0.005 and the total returns are less than 0.005%. Had these reimbursements not been made, the total returns would have been lower. |
See Accompanying Notes to the Financial Statements.
48 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
| RATIOS/SUPPLEMENTAL DATA | |||||||||||||||||||||||||||||||||
Total Return(b) | Ratios to Average Net Assets(c) | Supplemental Data | ||||||||||||||||||||||||||||||||
Net Asset Value, end of period | Net Asset Value(d) | Market Value (Unaudited)(e) | Expenses | Expenses net of reimbursements | Net investment income (loss) before reimbursements | Net investment Income (Loss) net of reimbursements | Portfolio Turnover Rate(b)(f) | Net assets, end of period (thousands) | ||||||||||||||||||||||||||
$ | 50.68 |
| (4.11 | )% | (4.56 | )% | 0.23 | % | 0.22 | % | 3.90 | % | 3.91 | % | 40 | % | $ | 27,872 | ||||||||||||||||
53.88 | 5.58 | 4.25 | 0.24 | 0.22 | 3.92 | 3.94 | 91 | 18,858 | ||||||||||||||||||||||||||
53.83 | 11.60 | 12.75 | 0.25 | 0.22 | 4.01 | 4.04 | 80 | 13,457 | ||||||||||||||||||||||||||
| 50.29 |
| 0.56 | 1.16 | 0.27 | 0.22 | 4.38 | 4.43 | — | 5,029 | ||||||||||||||||||||||||
| 75.41 |
| 0.56 | 0.63 | 0.26 | 0.25 | 1.72 | 1.72 | 51 | 135,741 | ||||||||||||||||||||||||
75.61 | 1.18 | 1.06 | 0.26 | 0.25 | 1.17 | 1.18 | 71 | 162,557 | ||||||||||||||||||||||||||
75.56 | 1.19 | 1.18 | 0.26 | 0.25 | 0.86 | 0.87 | 59 | 109,564 | ||||||||||||||||||||||||||
75.36 | 0.36 | 0.28 | 0.26 | 0.25 | 0.56 | 0.57 | 38 | 97,962 | ||||||||||||||||||||||||||
75.61 | 0.90 | 1.04 | 0.26 | 0.25 | 0.51 | 0.52 | 135 | 75,611 | ||||||||||||||||||||||||||
75.32 | 0.84 | 4.97 | 0.26 | 0.25 | 0.47 | 0.47 | 76 | 41,423 | ||||||||||||||||||||||||||
| 24.25 |
| (2.04 | ) | (2.43 | ) | 0.37 | (i) | 0.16 | (i) | 2.15 | 2.37 | 47 | 22,427 | ||||||||||||||||||||
| 25.08 |
| 2.86 | 3.19 | 0.43 | (i) | 0.16 | (i) | 2.08 | 2.35 | 99 | 3,762 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 49 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.1% | ||||||||
Aerospace & Defense – 2.1% | ||||||||
AAR Corp.(a) | 6,976 | $ | 302,061 | |||||
Aerojet Rocketdyne Holdings, Inc.* (a) | 11,118 | 310,637 | ||||||
Aerovironment, Inc.* (a) | 1,526 | 83,167 | ||||||
Arconic, Inc. | 5,450 | 97,064 | ||||||
Astronics Corp.* | 872 | 31,898 | ||||||
Axon Enterprise, Inc.* (a) | 4,578 | 192,184 | ||||||
Boeing Co. (The) | 15,478 | 5,162,842 | ||||||
BWX Technologies, Inc. | 1,744 | 118,243 | ||||||
Curtiss-Wright Corp. | 2,834 | 362,865 | ||||||
Esterline Technologies Corp.* | 4,360 | 313,266 | ||||||
General Dynamics Corp. | 6,758 | 1,360,453 | ||||||
Harris Corp. | 3,706 | 579,693 | ||||||
HEICO Corp.(a) | 5,722 | 502,678 | ||||||
Hexcel Corp. | 6,104 | 405,733 | ||||||
Huntington Ingalls Industries, Inc. | 2,834 | 689,257 | ||||||
KLX, Inc.* (a) | 14,606 | 1,142,627 | ||||||
Kratos Defense & Security Solutions, Inc.* (a) | 11,118 | 111,291 | ||||||
L3 Technologies, Inc. | 2,834 | 555,124 | ||||||
Lockheed Martin Corp. | 6,976 | 2,238,180 | ||||||
Mercury Systems, Inc.* (a) | 3,270 | 104,902 | ||||||
Moog, Inc., Class A* | 5,232 | 428,867 | ||||||
National Presto Industries, Inc.(a) | 436 | 41,747 | ||||||
Northrop Grumman Corp. | 5,014 | 1,614,709 | ||||||
Orbital ATK, Inc. | 4,142 | 548,318 | ||||||
Raytheon Co. | 9,156 | 1,876,431 | ||||||
Rockwell Collins, Inc. | 3,270 | 433,406 | ||||||
Spirit AeroSystems Holdings, Inc., Class A | 8,066 | 648,264 | ||||||
Teledyne Technologies, Inc.* (a) | 2,398 | 448,642 | ||||||
Textron, Inc. | 10,246 | 636,686 | ||||||
TransDigm Group, Inc. | 872 | 279,537 | ||||||
Triumph Group, Inc.(a) | 16,350 | 386,677 | ||||||
United Technologies Corp. | 22,236 | 2,671,655 | ||||||
24,679,104 |
Investments | Shares | Value | ||||||
Air Freight & Logistics – 0.5% | ||||||||
Air Transport Services Group, Inc.* | 15,696 | $ | 317,687 | |||||
Atlas Air Worldwide Holdings, Inc.* (a) | 10,900 | 691,060 | ||||||
CH Robinson Worldwide, Inc.(a) | 3,706 | 341,063 | ||||||
Echo Global Logistics, Inc.* | 1,090 | 29,757 | ||||||
Expeditors International of Washington, Inc. | 4,142 | 264,508 | ||||||
FedEx Corp. | 7,848 | 1,940,025 | ||||||
Forward Air Corp. | 2,834 | 153,008 | ||||||
Hub Group, Inc., Class A* | 2,180 | 95,811 | ||||||
Park-Ohio Holdings Corp. | 1,090 | 41,311 | ||||||
United Parcel Service, Inc., Class B | 15,042 | 1,707,267 | ||||||
XPO Logistics, Inc.* (a) | 7,630 | 741,331 | ||||||
6,322,828 | ||||||||
Airlines – 0.7% | ||||||||
Alaska Air Group, Inc. | 4,796 | 311,404 | ||||||
Allegiant Travel Co.(a) | 1,962 | 314,410 | ||||||
American Airlines Group, Inc.(a) | 26,160 | 1,123,049 | ||||||
Delta Air Lines, Inc. | 35,534 | 1,855,585 | ||||||
Hawaiian Holdings, Inc. | 13,734 | 565,841 | ||||||
JetBlue Airways Corp.* (a) | 21,146 | 405,792 | ||||||
SkyWest, Inc. | 20,274 | 1,153,591 | ||||||
Southwest Airlines Co. | 25,942 | 1,370,516 | ||||||
Spirit Airlines, Inc.* (a) | 17,004 | 607,383 | ||||||
United Continental Holdings, Inc.* | 15,914 | 1,074,831 | ||||||
8,782,402 | ||||||||
Auto Components – 0.7% | ||||||||
Adient plc(a) | 3,052 | 187,057 | ||||||
American Axle & Manufacturing Holdings, Inc.* (a) | 29,212 | 448,112 | ||||||
Aptiv plc | 12,206 | 1,032,383 | ||||||
Autoliv, Inc.(a) | 4,360 | 584,458 | ||||||
BorgWarner, Inc. | 12,862 | 629,466 | ||||||
Cooper Tire & Rubber Co.(a) | 13,734 | 335,796 |
See Accompanying Notes to the Financial Statements.
50 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Cooper-Standard Holdings, Inc.* (a) | 4,360 | $ | 539,768 | |||||
Dana, Inc.(a) | 52,320 | 1,241,554 | ||||||
Dorman Products, Inc.* (a) | 1,744 | 112,069 | ||||||
Gentex Corp. | 8,720 | 198,293 | ||||||
Gentherm, Inc.* (a) | 3,270 | 110,526 | ||||||
Goodyear Tire & Rubber Co. (The) | 13,952 | 350,335 | ||||||
LCI Industries(a) | 1,526 | 145,428 | ||||||
Lear Corp. | 2,180 | 407,595 | ||||||
Modine Manufacturing Co.* | 11,554 | 198,729 | ||||||
Motorcar Parts of America, Inc.* (a) | 3,052 | 58,110 | ||||||
Standard Motor Products, Inc.(a) | 3,270 | 148,294 | ||||||
Superior Industries International, Inc. | 218 | 2,867 | ||||||
Tenneco, Inc. | 16,132 | 720,939 | ||||||
Visteon Corp.* | 3,924 | 488,303 | ||||||
7,940,082 | ||||||||
Automobiles – 0.5% | ||||||||
Ford Motor Co. | 170,040 | 1,911,250 | ||||||
General Motors Co. | 55,808 | 2,050,386 | ||||||
Harley-Davidson, Inc.(a) | 436 | 17,933 | ||||||
Tesla, Inc.* (a) | 3,488 | 1,025,123 | ||||||
Thor Industries, Inc. | 4,578 | 485,909 | ||||||
Winnebago Industries, Inc.(a) | 5,886 | 223,079 | ||||||
5,713,680 | ||||||||
Banks – 8.6% | ||||||||
1st Source Corp.(a) | 3,488 | 181,376 | ||||||
Ameris Bancorp(a) | 4,360 | 225,412 | ||||||
Associated Banc-Corp. | 45,126 | 1,193,583 | ||||||
Banc of California, Inc.(a) | 872 | 16,742 | ||||||
BancFirst Corp. | 3,052 | 174,422 | ||||||
BancorpSouth Bank(a) | 7,848 | 259,376 | ||||||
Bank of America Corp. | 449,952 | 13,462,564 | ||||||
Bank of Hawaii Corp.(a) | 3,052 | 257,009 | ||||||
Bank of the Ozarks, Inc.* (a) | 5,232 | 244,858 | ||||||
BankUnited, Inc. | 43,600 | 1,726,996 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Banner Corp. | 3,270 | $ | 187,698 | |||||
BB&T Corp. | 37,932 | 2,002,810 | ||||||
Berkshire Hills Bancorp, Inc. | 5,014 | 190,281 | ||||||
BOK Financial Corp. | 218 | 21,948 | ||||||
Boston Private Financial Holdings, Inc. | 6,104 | 97,969 | ||||||
Brookline Bancorp, Inc. | 12,208 | 202,653 | ||||||
Bryn Mawr Bank Corp. | 2,180 | 97,228 | ||||||
Cathay General Bancorp(a) | 24,634 | 985,606 | ||||||
Central Pacific Financial Corp. | 3,488 | 101,431 | ||||||
Chemical Financial Corp.(a) | 26,596 | 1,459,854 | ||||||
CIT Group, Inc. | 11,990 | 634,870 | ||||||
Citigroup, Inc. | 122,298 | 8,349,284 | ||||||
Citizens Financial Group, Inc. | 27,032 | 1,121,558 | ||||||
City Holding Co.(a) | 2,616 | 187,253 | ||||||
Columbia Banking System, Inc.(a) | 7,630 | 306,802 | ||||||
Comerica, Inc. | 4,796 | 453,606 | ||||||
Commerce Bancshares, Inc. | 1,600 | 101,632 | ||||||
Community Bank System, Inc.(a) | 4,796 | 269,775 | ||||||
Community Trust Bancorp, Inc. | 1,962 | 94,176 | ||||||
Cullen/Frost Bankers, Inc. | 436 | 49,900 | ||||||
Customers Bancorp, Inc.* | 2,834 | 81,676 | ||||||
CVB Financial Corp.(a) | 13,080 | 289,722 | ||||||
Eagle Bancorp, Inc.* | 2,398 | 140,763 | ||||||
East West Bancorp, Inc. | 2,834 | 188,801 | ||||||
Fifth Third Bancorp | 36,842 | 1,222,049 | ||||||
First Bancorp/PR* | 33,354 | 240,816 | ||||||
First Citizens BancShares, Inc., Class A(a) | 1,962 | 848,153 | ||||||
First Commonwealth Financial Corp.(a) | 11,990 | 181,529 | ||||||
First Financial Bancorp | 12,426 | 384,585 | ||||||
First Financial Bankshares, Inc.(a) | 3,706 | 183,632 | ||||||
First Horizon National Corp. | 20,846 | 381,482 | ||||||
First Interstate BancSystem, Inc., Class A | 3,924 | 158,922 | ||||||
First Merchants Corp. | 7,630 | 328,700 | ||||||
First Midwest Bancorp, Inc. | 7,412 | 180,186 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 51 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
First Republic Bank(a) | 3,488 | $ | 323,931 | |||||
Flushing Financial Corp. | 6,322 | 163,803 | ||||||
FNB Corp.(a) | 37,496 | 487,448 | ||||||
Fulton Financial Corp.(a) | 37,060 | 626,314 | ||||||
Glacier Bancorp, Inc.(a) | 5,668 | 209,886 | ||||||
Great Western Bancorp, Inc.(a) | 10,028 | 412,552 | ||||||
Hancock Holding Co. | 21,800 | 1,064,930 | ||||||
Hanmi Financial Corp. | 3,270 | 90,252 | ||||||
Heartland Financial USA, Inc.(a) | 1,090 | 58,478 | ||||||
Hilltop Holdings, Inc. | 24,634 | 552,294 | ||||||
Home BancShares, Inc.(a) | 8,938 | 207,719 | ||||||
Hope Bancorp, Inc.(a) | 32,482 | 561,614 | ||||||
Huntington Bancshares, Inc. | 72,376 | 1,079,126 | ||||||
IBERIABANK Corp. | 17,440 | 1,307,128 | ||||||
Independent Bank Corp.(a) | 4,796 | 346,751 | ||||||
International Bancshares Corp. | 9,810 | 390,438 | ||||||
Investors Bancorp, Inc.(a) | 13,734 | 183,624 | ||||||
JPMorgan Chase & Co. | 159,794 | 17,382,391 | ||||||
KeyCorp | 66,490 | 1,324,481 | ||||||
Lakeland Financial Corp.(a) | 5,232 | 248,625 | ||||||
LegacyTexas Financial Group, Inc. | 9,156 | 376,037 | ||||||
M&T Bank Corp. | 6,540 | 1,192,046 | ||||||
MB Financial, Inc.(a) | 5,886 | 250,861 | ||||||
NBT Bancorp, Inc.(a) | 6,758 | 246,937 | ||||||
OFG Bancorp | 26,596 | 359,046 | ||||||
Old National Bancorp(a) | 30,956 | 532,443 | ||||||
PacWest Bancorp | 5,450 | 279,258 | ||||||
Park National Corp.(a) | 2,398 | 258,696 | ||||||
Peoples Bancorp, Inc. | 1,090 | 39,087 | ||||||
People’s United Financial, Inc. | 6,976 | 127,591 | ||||||
Pinnacle Financial Partners, Inc.(a) | 3,488 | 223,406 | ||||||
PNC Financial Services Group, Inc. (The) | 22,236 | 3,237,784 | ||||||
Popular, Inc. | 28,994 | 1,342,132 | ||||||
Prosperity Bancshares, Inc.(a) | 8,066 | 578,897 | ||||||
Regions Financial Corp. | 42,946 | 803,090 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Renasant Corp. | 4,796 | $ | 216,923 | |||||
S&T Bancorp, Inc.(a) | 6,976 | 297,736 | ||||||
Sandy Spring Bancorp, Inc. | 5,014 | 198,705 | ||||||
Signature Bank* | 1,744 | 221,750 | ||||||
Simmons First National Corp., Class A | 4,942 | 149,248 | ||||||
South State Corp.(a) | 2,398 | 207,547 | ||||||
Southside Bancshares, Inc.(a) | 3,924 | 136,673 | ||||||
State Bank Financial Corp. | 3,270 | 103,038 | ||||||
Sterling Bancorp(a) | 20,710 | 491,862 | ||||||
Stock Yards Bancorp, Inc. | 3,924 | 146,954 | ||||||
SunTrust Banks, Inc. | 18,966 | 1,266,929 | ||||||
SVB Financial Group* | 1,962 | 587,835 | ||||||
Synovus Financial Corp. | 9,374 | 489,979 | ||||||
TCF Financial Corp. | 42,074 | 1,044,697 | ||||||
Texas Capital Bancshares, Inc.* (a) | 2,834 | 279,574 | ||||||
Tompkins Financial Corp. | 2,616 | 203,263 | ||||||
TriCo Bancshares | 1,526 | 57,027 | ||||||
Trustmark Corp. | 14,824 | 464,139 | ||||||
UMB Financial Corp.(a) | 2,834 | 217,028 | ||||||
Umpqua Holdings Corp. | 64,092 | 1,510,008 | ||||||
Union Bankshares Corp.(a) | 8,938 | 337,946 | ||||||
United Bankshares, Inc.(a) | 23,762 | 806,720 | ||||||
United Community Banks, Inc. | 4,578 | 146,176 | ||||||
US Bancorp | 70,414 | 3,552,386 | ||||||
Valley National Bancorp(a) | 70,632 | 886,432 | ||||||
Washington Trust Bancorp, Inc. | 3,270 | 181,158 | ||||||
Webster Financial Corp.(a) | 6,322 | 380,521 | ||||||
Wells Fargo & Co. | 195,328 | 10,149,243 | ||||||
WesBanco, Inc.(a) | 6,976 | 305,549 | ||||||
Westamerica Bancorp(a) | 218 | 12,167 | ||||||
Western Alliance Bancorp* | 6,976 | 411,444 | ||||||
Wintrust Financial Corp. | 4,578 | 409,502 | ||||||
Zions Bancorp(a) | 4,796 | 262,581 | ||||||
102,471,524 | ||||||||
Beverages – 1.0% | ||||||||
Boston Beer Co., Inc. (The), Class A* (a) | 436 | 97,729 | ||||||
Brown-Forman Corp., Class B(a) | 10,519 | 589,485 |
See Accompanying Notes to the Financial Statements.
52 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Beverages – (continued) | ||||||||
Coca-Cola Bottling Co. Consolidated | 654 | $ | 110,127 | |||||
Coca-Cola Co. (The) | 106,384 | 4,596,853 | ||||||
Constellation Brands, Inc., Class A | 5,232 | 1,219,736 | ||||||
Dr Pepper Snapple Group, Inc. | 6,758 | 810,690 | ||||||
Molson Coors Brewing Co., Class B | 8,938 | 636,743 | ||||||
Monster Beverage Corp.* | 11,336 | 623,480 | ||||||
PepsiCo, Inc. | 37,496 | 3,784,846 | ||||||
12,469,689 | ||||||||
Biotechnology – 2.5% | ||||||||
AbbVie, Inc. | 51,448 | 4,967,304 | ||||||
ACADIA Pharmaceuticals, Inc.* (a) | 5,014 | 79,271 | ||||||
Achaogen, Inc.* (a) | 4,796 | 68,631 | ||||||
Acorda Therapeutics, Inc.* (a) | 15,914 | 367,613 | ||||||
Agios Pharmaceuticals, Inc.* (a) | 1,308 | 109,754 | ||||||
Alder Biopharmaceuticals, Inc.* (a) | 4,796 | 68,103 | ||||||
Alexion Pharmaceuticals, Inc.* | 5,668 | 666,727 | ||||||
Alkermes plc* (a) | 4,142 | 183,366 | ||||||
Alnylam Pharmaceuticals, Inc.* (a) | 2,834 | 267,898 | ||||||
AMAG Pharmaceuticals, Inc.* (a) | 10,464 | 215,035 | ||||||
Amgen, Inc. | 33,572 | 5,857,643 | ||||||
Amicus Therapeutics, Inc.* (a) | 12,208 | 172,743 | ||||||
Aquinox Pharmaceuticals, Inc.* | 4,578 | 55,806 | ||||||
Ardelyx, Inc.* | 16,568 | 79,526 | ||||||
Arena Pharmaceuticals, Inc.* (a) | 2,180 | 86,851 | ||||||
Array BioPharma, Inc.* | 4,142 | 56,166 | ||||||
Atara Biotherapeutics, Inc.* | 12,862 | 518,982 | ||||||
Avexis, Inc.* | 654 | 139,080 | ||||||
Biogen, Inc.* | 5,886 | 1,610,410 |
Investments | Shares | Value | ||||||
Biotechnology – (continued) | ||||||||
BioMarin Pharmaceutical, Inc.* | 3,488 | $ | 291,283 | |||||
Bluebird Bio, Inc.* (a) | 872 | 148,371 | ||||||
Celgene Corp.* | 23,108 | 2,012,707 | ||||||
Celldex Therapeutics, Inc.* (a) | 23,762 | 17,584 | ||||||
Clovis Oncology, Inc.* (a) | 15,260 | 661,979 | ||||||
Coherus Biosciences, Inc.* (a) | 8,938 | 108,150 | ||||||
Concert Pharmaceuticals, Inc.* (a) | 2,398 | 43,764 | ||||||
Curis, Inc.* (a) | 64,310 | 34,329 | ||||||
Eagle Pharmaceuticals, Inc.* (a) | 1,526 | 79,367 | ||||||
Emergent BioSolutions, Inc.* | 2,180 | 113,055 | ||||||
Epizyme, Inc.* | 2,616 | 33,616 | ||||||
Esperion Therapeutics, Inc.* (a) | 5,014 | 351,030 | ||||||
Exact Sciences Corp.* (a) | 2,616 | 130,826 | ||||||
Exelixis, Inc.* | 6,322 | 131,624 | ||||||
Geron Corp.* (a) | 218 | 811 | ||||||
Gilead Sciences, Inc. | 57,116 | 4,125,489 | ||||||
Global Blood Therapeutics, Inc.* (a) | 1,308 | 57,748 | ||||||
Halozyme Therapeutics, Inc.* (a) | 3,924 | 74,281 | ||||||
Heron Therapeutics, Inc.* (a) | 218 | 6,605 | ||||||
ImmunoGen, Inc.* | 7,412 | 81,458 | ||||||
Incyte Corp.* | 4,796 | 297,064 | ||||||
Insmed, Inc.* (a) | 2,834 | 68,951 | ||||||
Intrexon Corp.* (a) | 2,398 | 43,596 | ||||||
Ionis Pharmaceuticals, Inc.* (a) | 4,578 | 196,991 | ||||||
Iovance Biotherapeutics, Inc.* | 20,056 | 290,812 | ||||||
Ironwood Pharmaceuticals, Inc.* (a) | 1,090 | 19,751 | ||||||
Keryx Biopharmaceuticals, Inc.* (a) | 12,644 | 56,013 | ||||||
La Jolla Pharmaceutical Co.* (a) | 1,962 | 56,937 | ||||||
Ligand Pharmaceuticals, Inc.* (a) | 1,744 | 270,058 | ||||||
MacroGenics, Inc.* (a) | 1,526 | 35,190 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 53 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
MiMedx Group, Inc.* (a) | 436 | $ | 3,580 | |||||
Minerva Neurosciences, Inc.* (a) | 14,606 | 95,669 | ||||||
Momenta Pharmaceuticals, Inc.* | 2,616 | 54,413 | ||||||
Myriad Genetics, Inc.* (a) | 1,744 | 49,338 | ||||||
Neurocrine Biosciences, Inc.* (a) | 4,142 | 335,833 | ||||||
NewLink Genetics Corp.* (a) | 6,540 | 29,822 | ||||||
Novavax, Inc.* (a) | 38,586 | 60,194 | ||||||
OPKO Health, Inc.* (a) | 119,028 | 361,845 | ||||||
PDL BioPharma, Inc.* (a) | 63,656 | 185,876 | ||||||
Portola Pharmaceuticals, Inc.* (a) | 2,398 | 86,640 | ||||||
Progenics Pharmaceuticals, Inc.* | 2,398 | 15,611 | ||||||
Puma Biotechnology, Inc.* (a) | 1,090 | 69,487 | ||||||
Regeneron Pharmaceuticals, Inc.* (a) | 1,526 | 463,416 | ||||||
Repligen Corp.* (a) | 1,962 | 72,594 | ||||||
Retrophin, Inc.* (a) | 2,834 | 71,133 | ||||||
Rigel Pharmaceuticals, Inc.* (a) | 218 | 787 | ||||||
Sage Therapeutics, Inc.* (a) | 1,526 | 219,622 | ||||||
Sangamo Therapeutics, Inc.* (a) | 14,824 | 234,219 | ||||||
Sarepta Therapeutics, Inc.* (a) | 4,142 | 316,283 | ||||||
Seattle Genetics, Inc.* (a) | 3,270 | 167,391 | ||||||
Synergy Pharmaceuticals, Inc.* (a) | 38,150 | 59,514 | ||||||
Syros Pharmaceuticals, Inc.* (a) | 5,232 | 63,830 | ||||||
TESARO, Inc.* (a) | 872 | 44,394 | ||||||
TG Therapeutics, Inc.* (a) | 2,398 | 34,411 | ||||||
Ultragenyx Pharmaceutical, Inc.* (a) | 1,308 | 66,499 | ||||||
United Therapeutics Corp.* | 1,962 | 216,036 | ||||||
Vertex Pharmaceuticals, Inc.* | 7,848 | 1,202,000 | ||||||
29,990,786 |
Investments | Shares | Value | ||||||
Building Products – 0.4% | ||||||||
AAON, Inc.(a) | 4,360 | $ | 148,240 | |||||
American Woodmark Corp.* (a) | 1,308 | 107,518 | ||||||
AO Smith Corp. | 8,720 | 534,972 | ||||||
Apogee Enterprises, Inc.(a) | 4,796 | 197,163 | ||||||
Armstrong World Industries, Inc.* | 218 | 12,208 | ||||||
Builders FirstSource, Inc.* | 20,492 | 373,569 | ||||||
Fortune Brands Home & Security, Inc. | 2,834 | 154,991 | ||||||
Gibraltar Industries, Inc.* (a) | 2,180 | 76,627 | ||||||
Griffon Corp. | 6,322 | 125,808 | ||||||
Insteel Industries, Inc.(a) | 654 | 19,640 | ||||||
Johnson Controls International plc | 34,662 | 1,174,002 | ||||||
Lennox International, Inc.(a) | 2,398 | 463,701 | ||||||
Masco Corp. | 5,232 | 198,136 | ||||||
NCI Building Systems, Inc.* | 654 | 11,445 | ||||||
Owens Corning | 4,796 | 314,090 | ||||||
Patrick Industries, Inc.* (a) | 4,903 | 278,981 | ||||||
Quanex Building Products Corp.(a) | 436 | 7,477 | ||||||
Simpson Manufacturing Co., Inc.(a) | 1,744 | 95,362 | ||||||
Trex Co., Inc.* (a) | 2,616 | 271,750 | ||||||
Universal Forest Products, Inc. | 4,578 | 145,947 | ||||||
USG Corp.* (a) | 11,990 | 482,358 | ||||||
5,193,985 | ||||||||
Capital Markets – 2.9% | ||||||||
Affiliated Managers Group, Inc. | 1,526 | 251,576 | ||||||
Ameriprise Financial, Inc. | 5,232 | 733,579 | ||||||
Artisan Partners Asset Management, Inc., Class A | 3,924 | 126,157 | ||||||
Bank of New York Mellon Corp. (The) | 41,202 | 2,245,921 | ||||||
BGC Partners, Inc., Class A | 52,320 | 698,995 | ||||||
BlackRock, Inc. | 3,706 | 1,932,679 | ||||||
Cboe Global Markets, Inc.(a) | 4,578 | 488,839 | ||||||
Charles Schwab Corp. (The) | 29,866 | 1,662,939 | ||||||
CME Group, Inc. | 8,938 | 1,409,344 |
See Accompanying Notes to the Financial Statements.
54 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Cohen & Steers, Inc.(a) | 872 | $ | 34,967 | |||||
Cowen, Inc.* (a) | 18,312 | 283,836 | ||||||
E*TRADE Financial Corp.* | 14,388 | 873,064 | ||||||
Eaton Vance Corp. | 1,090 | 59,285 | ||||||
Evercore, Inc., Class A | 2,180 | 220,725 | ||||||
FactSet Research Systems, Inc.(a) | 654 | 123,678 | ||||||
Federated Investors, Inc., Class B(a) | 21,582 | 571,275 | ||||||
Financial Engines, Inc. | 1,526 | 68,136 | ||||||
Franklin Resources, Inc. | 9,156 | 308,008 | ||||||
Goldman Sachs Group, Inc. (The) | 17,222 | 4,104,519 | ||||||
Interactive Brokers Group, Inc., Class A(a) | 6,322 | 469,092 | ||||||
Intercontinental Exchange, Inc. | 15,260 | 1,105,774 | ||||||
INTL. FCStone, Inc.* (a) | 8,502 | 381,060 | ||||||
Invesco Ltd. | 22,236 | 644,177 | ||||||
Investment Technology Group, Inc. | 6,104 | 123,423 | ||||||
Janus Henderson Group plc(a) | 17,876 | 564,703 | ||||||
Legg Mason, Inc. | 18,748 | 744,296 | ||||||
LPL Financial Holdings, Inc. | 9,592 | 580,987 | ||||||
MarketAxess Holdings, Inc.(a) | 2,398 | 476,315 | ||||||
Moody’s Corp. | 4,578 | 742,552 | ||||||
Morgan Stanley | 69,542 | 3,589,758 | ||||||
Morningstar, Inc. | 218 | 23,670 | ||||||
MSCI, Inc. | 2,616 | 391,955 | ||||||
Nasdaq, Inc. | 1,962 | 173,284 | ||||||
Northern Trust Corp.(b) | 7,446 | 794,861 | ||||||
Piper Jaffray Cos. | 3,052 | 213,793 | ||||||
Raymond James Financial, Inc. | 2,180 | 195,655 | ||||||
S&P Global, Inc. | 5,886 | 1,110,100 | ||||||
SEI Investments Co. | 3,924 | 248,114 | ||||||
State Street Corp. | 14,824 | 1,479,139 | ||||||
Stifel Financial Corp.(a) | 25,942 | 1,511,901 | ||||||
T. Rowe Price Group, Inc. | 8,720 | 992,510 | ||||||
TD Ameritrade Holding Corp. | 4,142 | 240,609 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Virtu Financial, Inc., Class A(a) | 19,838 | $ | 714,168 | |||||
Waddell & Reed Financial, Inc., Class A(a) | 24,634 | 498,592 | ||||||
34,208,010 | ||||||||
Chemicals – 2.1% | ||||||||
A Schulman, Inc.(a) | 8,066 | 346,031 | ||||||
AdvanSix, Inc.* | 6,322 | 226,454 | ||||||
Air Products & Chemicals, Inc. | 5,014 | 813,722 | ||||||
Albemarle Corp.(a) | 4,578 | 443,883 | ||||||
American Vanguard Corp. | 218 | 4,698 | ||||||
Ashland Global Holdings, Inc. | 2,180 | 144,272 | ||||||
Axalta Coating Systems Ltd.* (a) | 2,398 | 74,098 | ||||||
Balchem Corp.(a) | 2,398 | 211,600 | ||||||
Cabot Corp. | 13,952 | 779,359 | ||||||
Celanese Corp., Series A | 5,232 | 568,561 | ||||||
CF Industries Holdings, Inc.(a) | 3,706 | 143,793 | ||||||
Chemours Co. (The)(a) | 12,426 | 601,543 | ||||||
DowDuPont, Inc. | 73,902 | 4,673,562 | ||||||
Eastman Chemical Co. | 7,630 | 778,870 | ||||||
Ecolab, Inc. | 6,540 | 946,796 | ||||||
Ferro Corp.* (a) | 12,426 | 273,496 | ||||||
Flotek Industries, Inc.* (a) | 654 | 2,335 | ||||||
FMC Corp. | 7,848 | 625,721 | ||||||
FutureFuel Corp. | 218 | 2,551 | ||||||
GCP Applied Technologies, Inc.* (a) | 13,734 | 393,479 | ||||||
HB Fuller Co.(a) | 2,398 | 118,629 | ||||||
Huntsman Corp. | 20,492 | 610,047 | ||||||
Innophos Holdings, Inc. | 4,796 | 198,458 | ||||||
Innospec, Inc. | 4,142 | 301,123 | ||||||
International Flavors & Fragrances, Inc. | 2,180 | 307,947 | ||||||
Koppers Holdings, Inc.* | 872 | 38,194 | ||||||
Kraton Corp.* (a) | 7,848 | 358,418 | ||||||
Kronos Worldwide, Inc.(a) | 12,426 | 286,295 | ||||||
LyondellBasell Industries NV, Class A | 11,336 | 1,198,555 | ||||||
Minerals Technologies, Inc. | 6,322 | 436,534 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 55 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Monsanto Co. | 12,208 | $ | 1,530,517 | |||||
Mosaic Co. (The) | 6,322 | 170,378 | ||||||
NewMarket Corp.(a) | 218 | 82,742 | ||||||
Olin Corp. | 11,990 | 361,978 | ||||||
OMNOVA Solutions, Inc.* | 1,526 | 16,633 | ||||||
Platform Specialty Products Corp.* | 60,168 | 605,892 | ||||||
PolyOne Corp. | 10,682 | 447,042 | ||||||
PPG Industries, Inc. | 5,668 | 600,128 | ||||||
Praxair, Inc. | 6,322 | 964,231 | ||||||
Quaker Chemical Corp. | 1,962 | 288,394 | ||||||
Rayonier Advanced Materials, Inc.(a) | 11,554 | 247,256 | ||||||
RPM International, Inc.(a) | 2,616 | 126,353 | ||||||
Scotts Miracle-Gro Co. (The)(a) | 2,834 | 236,866 | ||||||
Sensient Technologies Corp.(a) | 3,488 | 232,475 | ||||||
Sherwin-Williams Co. (The) | 2,180 | 801,499 | ||||||
Stepan Co. | 4,796 | 337,255 | ||||||
Tredegar Corp. | 654 | 11,510 | ||||||
Trinseo SA | 18,748 | 1,367,667 | ||||||
Tronox Ltd., Class A(a) | 16,786 | 288,383 | ||||||
Valvoline, Inc. | 4,360 | 88,421 | ||||||
Venator Materials plc* | 7,412 | 133,490 | ||||||
Westlake Chemical Corp. | 436 | 46,639 | ||||||
WR Grace & Co. | 872 | 59,680 | ||||||
24,954,453 | ||||||||
Commercial Services & Supplies – 0.8% | ||||||||
ABM Industries, Inc.(a) | 5,668 | 176,445 | ||||||
ACCO Brands Corp. | 28,558 | 344,124 | ||||||
Brady Corp., Class A | 5,668 | 206,315 | ||||||
Brink’s Co. (The) | 5,886 | 434,387 | ||||||
CECO Environmental Corp. | 5,668 | 26,640 | ||||||
Cintas Corp.(a) | 2,834 | 482,630 | ||||||
Copart, Inc.* | 3,052 | 155,896 | ||||||
Covanta Holding Corp.(a) | 42,292 | 630,151 | ||||||
Deluxe Corp.(a) | 13,734 | 941,328 | ||||||
Ennis, Inc. | 7,412 | 132,675 | ||||||
Essendant, Inc.(a) | 13,734 | 102,181 | ||||||
Healthcare Services Group, Inc.(a) | 6,540 | 252,640 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – (continued) | ||||||||
Herman Miller, Inc. | 10,464 | $ | 321,245 | |||||
HNI Corp. | 8,284 | 276,603 | ||||||
Interface, Inc. | 2,616 | 57,552 | ||||||
KAR Auction Services, Inc. | 6,758 | 351,348 | ||||||
Kimball International, Inc., Class B | 7,848 | 129,649 | ||||||
Knoll, Inc. | 4,142 | 78,988 | ||||||
LSC Communications, Inc.(a) | 9,374 | 163,857 | ||||||
Matthews International Corp., Class A(a) | 3,924 | 192,865 | ||||||
McGrath RentCorp | 654 | 38,540 | ||||||
Mobile Mini, Inc. | 2,398 | 100,716 | ||||||
MSA Safety, Inc. | 1,526 | 132,518 | ||||||
Multi-Color Corp.(a) | 2,398 | 155,750 | ||||||
Pitney Bowes, Inc. | 53,846 | 550,306 | ||||||
Quad/Graphics, Inc. | 17,004 | 420,169 | ||||||
Republic Services, Inc. | 8,066 | 521,709 | ||||||
Rollins, Inc.(a) | 3,052 | 148,083 | ||||||
RR Donnelley & Sons Co. | 14,388 | 121,579 | ||||||
SP Plus Corp.* | 436 | 15,325 | ||||||
Steelcase, Inc., Class A | 14,388 | 190,641 | ||||||
Stericycle, Inc.* | 2,398 | 140,787 | ||||||
Team, Inc.* (a) | 8,502 | 144,109 | ||||||
Tetra Tech, Inc. | 6,976 | 337,638 | ||||||
UniFirst Corp. | 1,744 | 280,086 | ||||||
US Ecology, Inc. | 2,180 | 116,194 | ||||||
Viad Corp. | 1,308 | 66,381 | ||||||
Waste Management, Inc. | 12,208 | 992,388 | ||||||
9,930,438 | ||||||||
Communications Equipment – 1.5% | ||||||||
Acacia Communications, Inc.* (a) | 5,668 | 159,554 | ||||||
ADTRAN, Inc.(a) | 218 | 3,194 | ||||||
Applied Optoelectronics, Inc.* (a) | 6,322 | 202,051 | ||||||
Arista Networks, Inc.* (a) | 1,308 | 346,031 | ||||||
ARRIS International plc* | 6,322 | 170,694 | ||||||
CalAmp Corp.* | 1,090 | 21,528 | ||||||
Calix, Inc.* | 436 | 2,899 | ||||||
Ciena Corp.* (a) | 40,984 | 1,055,338 | ||||||
Cisco Systems, Inc. | 232,388 | 10,292,465 | ||||||
CommScope Holding Co., Inc.* | 3,488 | 133,311 |
See Accompanying Notes to the Financial Statements.
56 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Communications Equipment – (continued) | ||||||||
EchoStar Corp., Class A* (a) | 2,180 | $ | 114,537 | |||||
Extreme Networks, Inc.* (a) | 6,976 | 74,643 | ||||||
F5 Networks, Inc.* | 1,308 | 213,322 | ||||||
Finisar Corp.* (a) | 37,060 | 577,395 | ||||||
Harmonic, Inc.* (a) | 30,084 | 109,807 | ||||||
Infinera Corp.* (a) | 6,976 | 81,759 | ||||||
InterDigital, Inc. | 3,270 | 243,451 | ||||||
Juniper Networks, Inc. | 11,990 | 294,834 | ||||||
Lumentum Holdings, Inc.* (a) | 1,526 | 76,987 | ||||||
Motorola Solutions, Inc. | 3,488 | 383,087 | ||||||
NETGEAR, Inc.* (a) | 4,360 | 241,108 | ||||||
NetScout Systems, Inc.* (a) | 24,852 | 674,732 | ||||||
Oclaro, Inc.* | 50,358 | 398,835 | ||||||
Palo Alto Networks, Inc.* | 2,616 | 503,606 | ||||||
Plantronics, Inc. | 2,180 | 142,027 | ||||||
Ubiquiti Networks, Inc.* (a) | 872 | 62,139 | ||||||
ViaSat, Inc.* (a) | 13,298 | 850,806 | ||||||
Viavi Solutions, Inc.* (a) | 40,984 | 387,299 | ||||||
17,817,439 | ||||||||
Construction & Engineering – 0.3% | ||||||||
AECOM* | 7,848 | 270,285 | ||||||
Aegion Corp.* | 5,232 | 118,714 | ||||||
Argan, Inc. | 2,398 | 95,920 | ||||||
Chicago Bridge & Iron Co. NV(a) | 36,188 | 546,439 | ||||||
Comfort Systems USA, Inc. | 4,142 | 174,792 | ||||||
Dycom Industries, Inc.* (a) | 4,360 | 452,830 | ||||||
EMCOR Group, Inc. | 4,142 | 304,810 | ||||||
Fluor Corp. | 6,758 | 398,384 | ||||||
Granite Construction, Inc.(a) | 1,962 | 102,770 | ||||||
Jacobs Engineering Group, Inc. | 1,090 | 63,318 | ||||||
KBR, Inc.(a) | 35,534 | 593,062 | ||||||
MasTec, Inc.* (a) | 13,952 | 613,888 | ||||||
MYR Group, Inc.* | 654 | 19,620 | ||||||
Primoris Services Corp. | 3,052 | 78,101 | ||||||
Tutor Perini Corp.* (a) | 9,156 | 189,071 | ||||||
Valmont Industries, Inc. | 436 | 61,956 | ||||||
4,083,960 |
Investments | Shares | Value | ||||||
Construction Materials – 0.1% | ||||||||
Eagle Materials, Inc. | 1,962 | $ | 194,160 | |||||
Martin Marietta Materials, Inc. | 1,962 | 382,139 | ||||||
Summit Materials, Inc., Class A* (a) | 15,508 | 436,395 | ||||||
US Concrete, Inc.* (a) | 1,090 | 63,710 | ||||||
Vulcan Materials Co. | 3,488 | 389,575 | ||||||
1,465,979 | ||||||||
Consumer Finance – 1.1% | ||||||||
Ally Financial, Inc. | 22,890 | 597,429 | ||||||
American Express Co. | 25,288 | 2,497,190 | ||||||
Capital One Financial Corp. | 21,582 | 1,955,761 | ||||||
Credit Acceptance Corp.* (a) | 1,526 | 504,862 | ||||||
Discover Financial Services | 18,312 | 1,304,730 | ||||||
Encore Capital Group, Inc.* (a) | 10,464 | 466,694 | ||||||
Enova International, Inc.* | 9,156 | 268,271 | ||||||
EZCORP, Inc., Class A* (a) | 14,170 | 194,129 | ||||||
FirstCash, Inc. | 5,232 | 453,614 | ||||||
Green Dot Corp., Class A* | 3,052 | 185,592 | ||||||
LendingClub Corp.* (a) | 218 | 586 | ||||||
Navient Corp. | 74,556 | 988,613 | ||||||
Nelnet, Inc., Class A(a) | 8,502 | 448,991 | ||||||
OneMain Holdings, Inc.* | 7,412 | 228,660 | ||||||
PRA Group, Inc.* (a) | 8,720 | 310,432 | ||||||
Santander Consumer USA Holdings, Inc.(a) | 12,426 | 229,260 | ||||||
SLM Corp.* | 46,652 | 535,565 | ||||||
Synchrony Financial | 40,112 | 1,330,515 | ||||||
World Acceptance Corp.* (a) | 1,090 | 111,725 | ||||||
12,612,619 | ||||||||
Containers & Packaging – 0.5% | ||||||||
AptarGroup, Inc.(a) | 1,090 | 101,915 | ||||||
Avery Dennison Corp. | 1,962 | 205,637 | ||||||
Ball Corp. | 11,118 | 445,721 | ||||||
Bemis Co., Inc. | 16,132 | 698,032 | ||||||
Berry Global Group, Inc.* | 10,246 | 563,530 | ||||||
Crown Holdings, Inc.* | 4,142 | 206,437 | ||||||
Graphic Packaging Holding Co. | 21,364 | 305,505 | ||||||
International Paper Co. | 20,710 | 1,067,808 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 57 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Containers & Packaging – (continued) | ||||||||
Myers Industries, Inc. | 436 | $ | 10,159 | |||||
Owens-Illinois, Inc.* | 49,050 | 997,186 | ||||||
Packaging Corp. of America | 1,744 | 201,763 | ||||||
Sealed Air Corp.(a) | 3,924 | 172,067 | ||||||
Silgan Holdings, Inc. | 4,796 | 134,624 | ||||||
Sonoco Products Co. | 1,962 | 100,768 | ||||||
WestRock Co. | 13,080 | 773,813 | ||||||
5,984,965 | ||||||||
Distributors – 0.1% | ||||||||
Core-Mark Holding Co., Inc. | 5,232 | 107,832 | ||||||
Genuine Parts Co. | 2,398 | 211,791 | ||||||
LKQ Corp.* | 9,156 | 284,019 | ||||||
Pool Corp.(a) | 2,834 | 393,388 | ||||||
997,030 | ||||||||
Diversified Consumer Services – 0.3% | ||||||||
Adtalem Global Education, Inc.* | 18,312 | 871,651 | ||||||
American Public Education, Inc.* | 2,616 | 105,425 | ||||||
Bright Horizons Family Solutions, Inc.* | 3,270 | 310,258 | ||||||
Capella Education Co. | 1,744 | 160,012 | ||||||
Career Education Corp.* | 16,350 | 212,059 | ||||||
Carriage Services, Inc.(a) | 3,488 | 90,793 | ||||||
Graham Holdings Co., Class B | 436 | 262,930 | ||||||
Grand Canyon Education, Inc.* (a) | 4,360 | 453,396 | ||||||
H&R Block, Inc. | 5,886 | 162,748 | ||||||
Houghton Mifflin Harcourt Co.* | 24,198 | 164,546 | ||||||
Service Corp. International(a) | 10,464 | 382,041 | ||||||
Strayer Education, Inc.(a) | 1,744 | 183,242 | ||||||
Weight Watchers International, Inc.* | 8,720 | 610,836 | ||||||
3,969,937 | ||||||||
Diversified Financial Services – 1.5% | ||||||||
Berkshire Hathaway, Inc., Class B* | 88,072 | 17,062,189 | ||||||
Cannae Holdings, Inc.* | 1,526 | 31,527 |
Investments | Shares | Value | ||||||
Diversified Financial Services – (continued) | ||||||||
Leucadia National Corp. | 17,440 | $ | 419,263 | |||||
Voya Financial, Inc. | 13,952 | 730,387 | ||||||
18,243,366 | ||||||||
Diversified Telecommunication Services – 1.7% | ||||||||
AT&T, Inc. | 279,912 | 9,153,122 | ||||||
ATN International, Inc. | 1,744 | 92,432 | ||||||
CenturyLink, Inc. | 45,998 | 854,643 | ||||||
Cincinnati Bell, Inc.* (a) | 436 | 6,606 | ||||||
Cogent Communications Holdings, Inc. | 3,270 | 154,181 | ||||||
Consolidated Communications Holdings, Inc.(a) | 2,398 | 27,097 | ||||||
Frontier Communications Corp.(a) | 30,084 | 249,697 | ||||||
Globalstar, Inc.* | 12,862 | 7,866 | ||||||
IDT Corp., Class B* | 2,616 | 14,179 | ||||||
Iridium Communications, Inc.* (a) | 27,032 | 321,681 | ||||||
ORBCOMM, Inc.* (a) | 2,616 | 23,596 | ||||||
Verizon Communications, Inc. | 174,618 | 8,617,398 | ||||||
Vonage Holdings Corp.* | 29,212 | 326,590 | ||||||
Windstream Holdings, Inc. | 436 | 676 | ||||||
Zayo Group Holdings, Inc.* | 6,104 | 221,575 | ||||||
20,071,339 | ||||||||
Electric Utilities – 1.5% | ||||||||
ALLETE, Inc. | 6,104 | 466,407 | ||||||
Alliant Energy Corp. | 4,360 | 187,262 | ||||||
American Electric Power Co., Inc. | 15,042 | 1,052,639 | ||||||
Duke Energy Corp.(a) | 25,724 | 2,062,036 | ||||||
Edison International | 14,824 | 971,269 | ||||||
El Paso Electric Co. | 5,450 | 278,223 | ||||||
Entergy Corp. | 8,938 | 729,251 | ||||||
Eversource Energy | 11,118 | 669,860 | ||||||
Exelon Corp. | 40,984 | 1,626,245 | ||||||
FirstEnergy Corp.(a) | 20,492 | 704,925 | ||||||
Great Plains Energy, Inc. | 19,402 | 635,027 | ||||||
Hawaiian Electric Industries, Inc.(a) | 13,516 | 468,870 | ||||||
IDACORP, Inc. | 3,488 | 324,384 |
See Accompanying Notes to the Financial Statements.
58 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
MGE Energy, Inc. | 2,398 | $ | 139,204 | |||||
NextEra Energy, Inc. | 11,554 | 1,893,816 | ||||||
OGE Energy Corp. | 2,616 | 85,988 | ||||||
Otter Tail Corp. | 1,526 | 66,915 | ||||||
PG&E Corp. | 24,198 | 1,115,528 | ||||||
Pinnacle West Capital Corp. | 1,962 | 157,941 | ||||||
PNM Resources, Inc. | 8,720 | 345,748 | ||||||
Portland General Electric Co. | 10,246 | 435,250 | ||||||
PPL Corp. | 33,790 | 983,289 | ||||||
Southern Co. (The) | 42,510 | 1,960,561 | ||||||
Westar Energy, Inc. | 1,308 | 70,867 | ||||||
Xcel Energy, Inc. | 22,672 | 1,061,956 | ||||||
18,493,461 | ||||||||
Electrical Equipment – 0.6% | ||||||||
Acuity Brands, Inc.(a) | 1,526 | 182,769 | ||||||
AMETEK, Inc. | 3,706 | 258,679 | ||||||
AZZ, Inc.(a) | 1,308 | 58,271 | ||||||
Eaton Corp. plc | 23,980 | 1,799,219 | ||||||
Emerson Electric Co. | 21,146 | 1,404,306 | ||||||
Encore Wire Corp.(a) | 1,308 | 68,866 | ||||||
EnerSys | 9,810 | 672,574 | ||||||
Generac Holdings, Inc.* | 9,592 | 431,736 | ||||||
General Cable Corp.(a) | 5,014 | 148,665 | ||||||
Hubbell, Inc. | 654 | 67,925 | ||||||
Regal Beloit Corp. | 14,170 | 1,008,904 | ||||||
Rockwell Automation, Inc. | 2,180 | 358,675 | ||||||
Sensata Technologies Holding plc* (a) | 1,744 | 88,456 | ||||||
Sunrun, Inc.* (a) | 18,966 | 174,867 | ||||||
Vivint Solar, Inc.* (a) | 872 | 3,444 | ||||||
6,727,356 | ||||||||
Electronic Equipment, Instruments & Components – 1.2% | ||||||||
Amphenol Corp., Class A | 8,066 | 675,205 | ||||||
Anixter International, Inc.* | 7,412 | 436,567 | ||||||
Arrow Electronics, Inc.* | 2,180 | 162,933 | ||||||
Avnet, Inc. | 2,180 | 85,521 | ||||||
AVX Corp. | 7,630 | 112,619 | ||||||
Badger Meter, Inc.(a) | 2,616 | 111,049 | ||||||
Belden, Inc.(a) | 12,644 | 778,870 | ||||||
Benchmark Electronics, Inc. | 10,246 | 269,470 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
CDW Corp. | 3,052 | $ | 217,577 | |||||
Cognex Corp. | 10,028 | 463,795 | ||||||
Coherent, Inc.* (a) | 1,308 | 220,032 | ||||||
Corning, Inc. | 50,140 | 1,354,783 | ||||||
CTS Corp. | 6,758 | 202,402 | ||||||
Dolby Laboratories, Inc., Class A(a) | 872 | 52,163 | ||||||
ePlus, Inc.* | 4,360 | 348,146 | ||||||
Fabrinet* (a) | 10,900 | 307,489 | ||||||
Fitbit, Inc., Class A* | 436 | 2,420 | ||||||
Flex Ltd.* | 8,938 | 116,194 | ||||||
FLIR Systems, Inc. | 3,488 | 186,782 | ||||||
II-VI, Inc.* (a) | 1,090 | 41,529 | ||||||
Insight Enterprises, Inc.* | 11,554 | 409,589 | ||||||
IPG Photonics Corp.* | 2,834 | 603,727 | ||||||
Jabil, Inc. | 19,184 | 510,294 | ||||||
Keysight Technologies, Inc.* | 1,526 | 78,864 | ||||||
Knowles Corp.* | 1,308 | 16,742 | ||||||
Littelfuse, Inc.(a) | 2,020 | 377,578 | ||||||
Mesa Laboratories, Inc.(a) | 218 | 36,692 | ||||||
Methode Electronics, Inc. | 3,270 | 130,473 | ||||||
National Instruments Corp.(a) | 218 | 8,914 | ||||||
Novanta, Inc.* | 3,270 | 192,276 | ||||||
PC Connection, Inc.(a) | 3,924 | 104,732 | ||||||
Plexus Corp.* | 6,758 | 370,609 | ||||||
Rogers Corp.* | 1,308 | 139,564 | ||||||
Sanmina Corp.* | 22,236 | 655,962 | ||||||
ScanSource, Inc.* | 5,014 | 171,980 | ||||||
SYNNEX Corp. | 3,924 | 393,067 | ||||||
TE Connectivity Ltd. | 7,194 | 660,050 | ||||||
Tech Data Corp.* | 11,336 | 864,370 | ||||||
Trimble, Inc.* | 5,232 | 181,027 | ||||||
TTM Technologies, Inc.* (a) | 21,800 | 303,892 | ||||||
Universal Display Corp.(a) | 1,308 | 115,169 | ||||||
VeriFone Systems, Inc.* | 17,004 | 391,262 | ||||||
Vishay Intertechnology, Inc.(a) | 55,808 | 985,011 | ||||||
Zebra Technologies Corp., Class A* | 5,014 | 676,038 | ||||||
14,523,428 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 59 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Energy Equipment & Services – 1.4% | ||||||||
Archrock, Inc.(a) | 34,880 | $ | 376,704 | |||||
Baker Hughes a GE Co. | 16,568 | 598,270 | ||||||
Basic Energy Services, Inc.* | 8,284 | 134,035 | ||||||
Bristow Group, Inc.(a) | 13,734 | 220,431 | ||||||
C&J Energy Services, Inc.* (a) | 15,914 | 475,192 | ||||||
Core Laboratories NV(a) | 872 | 106,776 | ||||||
Diamond Offshore Drilling, Inc.* (a) | 41,856 | 769,732 | ||||||
Ensco plc, Class A(a) | 15,042 | 84,987 | ||||||
Exterran Corp.* | 12,862 | 376,728 | ||||||
Forum Energy Technologies, Inc.* (a) | 7,848 | 98,885 | ||||||
Frank’s International NV(a) | 18,530 | 129,525 | ||||||
Halliburton Co. | 26,814 | 1,420,874 | ||||||
Helix Energy Solutions Group, Inc.* | 30,738 | 237,297 | ||||||
Helmerich & Payne, Inc. | 6,540 | 454,857 | ||||||
Matrix Service Co.* | 11,118 | 171,217 | ||||||
McDermott International, Inc.* | 86,546 | 571,204 | ||||||
Nabors Industries Ltd.(a) | 135,596 | 1,031,886 | ||||||
National Oilwell Varco, Inc.(a) | 12,208 | 472,083 | ||||||
Natural Gas Services Group, Inc.* | 872 | 21,015 | ||||||
Newpark Resources, Inc.* (a) | 5,014 | 52,647 | ||||||
Noble Corp. plc* (a) | 157,178 | 734,021 | ||||||
Oceaneering International, Inc.(a) | 32,700 | 694,548 | ||||||
Oil States International, Inc.* (a) | 2,834 | 101,882 | ||||||
Patterson-UTI Energy, Inc.(a) | 18,966 | 406,252 | ||||||
RPC, Inc.(a) | 6,104 | 109,933 | ||||||
Schlumberger Ltd. | 44,036 | 3,019,108 | ||||||
SEACOR Holdings, Inc.* | 3,488 | 191,282 | ||||||
Superior Energy Services, Inc.* | 63,220 | 678,351 | ||||||
TETRA Technologies, Inc.* | 44,036 | 173,061 | ||||||
Transocean Ltd.* (a) | 140,610 | 1,739,346 | ||||||
Unit Corp.* (a) | 19,620 | 444,982 | ||||||
US Silica Holdings, Inc.(a) | 2,834 | 85,332 |
Investments | Shares | Value | ||||||
Energy Equipment & Services – (continued) | ||||||||
Weatherford International plc* (a) | 90,470 | $ | 266,887 | |||||
16,449,330 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.4% | ||||||||
Acadia Realty Trust(a) | 1,090 | 25,724 | ||||||
Agree Realty Corp. | 1,090 | 53,279 | ||||||
Alexander & Baldwin, Inc. | 3,270 | 74,883 | ||||||
Alexander’s, Inc.(a) | 218 | 85,750 | ||||||
Alexandria Real Estate Equities, Inc. | 2,834 | 353,031 | ||||||
American Assets Trust, Inc. | 2,834 | 95,137 | ||||||
American Campus Communities, Inc. | 5,886 | 230,201 | ||||||
American Homes 4 Rent, Class A | 7,630 | 154,126 | ||||||
American Tower Corp. | 12,426 | 1,694,409 | ||||||
Apartment Investment & Management Co., Class A | 4,360 | 177,016 | ||||||
Apple Hospitality REIT, Inc. | 49,704 | 894,175 | ||||||
Ashford Hospitality Trust, Inc. | 22,454 | 154,484 | ||||||
AvalonBay Communities, Inc. | 5,232 | 852,816 | ||||||
Bluerock Residential Growth REIT, Inc.(a) | 13,298 | 119,549 | ||||||
Boston Properties, Inc. | 5,014 | 608,750 | ||||||
Braemar Hotels & Resorts, Inc. | 654 | 6,802 | ||||||
Brandywine Realty Trust | 13,298 | 214,231 | ||||||
Brixmor Property Group, Inc. | 18,966 | 282,404 | ||||||
Camden Property Trust | 2,398 | 204,789 | ||||||
CBL & Associates Properties, Inc.(a) | 74,120 | 309,822 | ||||||
Chatham Lodging Trust | 1,090 | 20,765 | ||||||
Chesapeake Lodging Trust | 7,194 | 212,511 | ||||||
CoreCivic, Inc. | 42,946 | 865,791 | ||||||
CorEnergy Infrastructure Trust, Inc.(a) | 1,090 | 42,009 | ||||||
CoreSite Realty Corp.(a) | 2,616 | 272,326 | ||||||
Corporate Office Properties Trust | 9,156 | 251,882 | ||||||
Cousins Properties, Inc. | 9,156 | 81,397 | ||||||
Crown Castle International Corp. | 11,990 | 1,209,431 | ||||||
CubeSmart | 12,644 | 372,239 |
See Accompanying Notes to the Financial Statements.
60 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
CyrusOne, Inc.(a) | 2,834 | $ | 151,874 | |||||
DCT Industrial Trust, Inc. | 5,668 | 371,651 | ||||||
DDR Corp.(a) | 100,280 | 727,030 | ||||||
DiamondRock Hospitality Co. | 37,714 | 416,740 | ||||||
Digital Realty Trust, Inc.(a) | 5,886 | 622,091 | ||||||
Douglas Emmett, Inc. | 2,398 | 89,373 | ||||||
Duke Realty Corp. | 11,118 | 301,298 | ||||||
EastGroup Properties, Inc.(a) | 1,090 | 97,860 | ||||||
Education Realty Trust, Inc.(a) | 4,142 | 136,313 | ||||||
Empire State Realty Trust, Inc., Class A | 6,976 | 121,522 | ||||||
EPR Properties | 3,488 | 191,910 | ||||||
Equinix, Inc. | 2,398 | 1,009,054 | ||||||
Equity Commonwealth* (a) | 16,350 | 506,687 | ||||||
Equity LifeStyle Properties, Inc. | 1,526 | 136,058 | ||||||
Equity Residential | 6,758 | 417,036 | ||||||
Essex Property Trust, Inc. | 1,962 | 470,272 | ||||||
Extra Space Storage, Inc. | 5,014 | 449,204 | ||||||
Federal Realty Investment Trust(a) | 1,744 | 202,042 | ||||||
First Industrial Realty Trust, Inc.(a) | 9,374 | 291,625 | ||||||
Forest City Realty Trust, Inc., Class A | 6,976 | 139,939 | ||||||
Franklin Street Properties Corp.(a) | 46,216 | 359,561 | ||||||
Front Yard Residential Corp.(a) | 37,496 | 368,211 | ||||||
Gaming and Leisure Properties, Inc. | 3,924 | 134,476 | ||||||
GEO Group, Inc. (The) | 6,976 | 156,960 | ||||||
Getty Realty Corp.(a) | 872 | 21,844 | ||||||
GGP, Inc. | 20,274 | 405,277 | ||||||
Global Net Lease, Inc.(a) | 5,886 | 109,538 | ||||||
HCP, Inc. | 22,672 | 529,618 | ||||||
Healthcare Realty Trust, Inc.(a) | 5,668 | 157,740 | ||||||
Healthcare Trust of America, Inc., Class A(a) | 5,014 | 125,300 | ||||||
Hersha Hospitality Trust | 6,322 | 118,727 | ||||||
Highwoods Properties, Inc. | 3,706 | 163,138 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Hospitality Properties Trust | 9,592 | $ | 238,649 | |||||
Host Hotels & Resorts, Inc. | 25,288 | 494,633 | ||||||
Hudson Pacific Properties, Inc. | 5,668 | 186,307 | ||||||
InfraREIT, Inc. | 5,886 | 125,431 | ||||||
Investors Real Estate Trust | 15,478 | 82,498 | ||||||
Invitation Homes, Inc. | 13,016 | 301,190 | ||||||
iStar, Inc.* | 26,814 | 271,894 | ||||||
Kilroy Realty Corp. | 1,526 | 109,368 | ||||||
Kimco Realty Corp. | 28,340 | 411,213 | ||||||
Kite Realty Group Trust(a) | 32,918 | 484,553 | ||||||
Lamar Advertising Co., Class A | 2,834 | 180,554 | ||||||
LaSalle Hotel Properties | 34,444 | 1,018,509 | ||||||
Lexington Realty Trust | 13,952 | 112,174 | ||||||
Liberty Property Trust | 436 | 18,234 | ||||||
Life Storage, Inc. | 4,578 | 404,878 | ||||||
LTC Properties, Inc. | 3,052 | 110,330 | ||||||
Macerich Co. (The) | 3,270 | 188,417 | ||||||
Mack-Cali Realty Corp. | 11,118 | 190,896 | ||||||
Medical Properties Trust, Inc.(a) | 42,510 | 543,278 | ||||||
Mid-America Apartment Communities, Inc. | 3,924 | 358,889 | ||||||
National Health Investors, Inc.(a) | 2,616 | 178,594 | ||||||
National Retail Properties, Inc.(a) | 3,052 | 116,098 | ||||||
New Senior Investment Group, Inc.(a) | 28,122 | 242,412 | ||||||
NorthStar Realty Europe Corp. | 1,526 | 22,127 | ||||||
Omega Healthcare Investors, Inc.(a) | 10,028 | 260,527 | ||||||
Outfront Media, Inc. | 7,412 | 138,975 | ||||||
Paramount Group, Inc. | 5,014 | 71,951 | ||||||
Pebblebrook Hotel Trust(a) | 2,398 | 83,906 | ||||||
Pennsylvania REIT(a) | 28,776 | 278,552 | ||||||
Physicians Realty Trust | 9,810 | 146,561 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 5,886 | 105,477 | ||||||
Preferred Apartment Communities, Inc., Class A | 7,848 | 115,444 | ||||||
Prologis, Inc. | 13,516 | 877,324 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 61 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
PS Business Parks, Inc. | 872 | $ | 100,524 | |||||
Public Storage | 3,488 | 703,809 | ||||||
QTS Realty Trust, Inc., Class A | 1,090 | 38,575 | ||||||
Quality Care Properties, Inc.* | 4,796 | 105,368 | ||||||
Ramco-Gershenson Properties Trust | 654 | 7,815 | ||||||
Rayonier, Inc. | 4,360 | 162,148 | ||||||
Realty Income Corp.(a) | 11,554 | 583,600 | ||||||
Regency Centers Corp. | 5,014 | 295,074 | ||||||
Retail Opportunity Investments Corp.(a) | 5,232 | 89,990 | ||||||
RLJ Lodging Trust | 4,578 | 95,085 | ||||||
Ryman Hospitality Properties, Inc.(a) | 5,450 | 427,171 | ||||||
Sabra Health Care REIT, Inc.(a) | 64,528 | 1,181,508 | ||||||
Saul Centers, Inc. | 654 | 31,294 | ||||||
SBA Communications Corp.* | 2,616 | 419,162 | ||||||
Select Income REIT | 28,122 | 533,193 | ||||||
Senior Housing Properties Trust(a) | 10,682 | 166,319 | ||||||
Simon Property Group, Inc. | 6,104 | 954,299 | ||||||
SL Green Realty Corp. | 1,308 | 127,844 | ||||||
Spirit Realty Capital, Inc. | 218 | 1,755 | ||||||
STAG Industrial, Inc. | 3,488 | 85,700 | ||||||
STORE Capital Corp.(a) | 11,336 | 286,007 | ||||||
Summit Hotel Properties, Inc. | 33,136 | 479,809 | ||||||
Sun Communities, Inc. | 3,924 | 368,267 | ||||||
Sunstone Hotel Investors, Inc. | 7,630 | 119,028 | ||||||
Taubman Centers, Inc. | 2,834 | 158,647 | ||||||
Terreno Realty Corp. | 218 | 8,099 | ||||||
Tier REIT, Inc. | 3,924 | 74,595 | ||||||
UDR, Inc. | 7,412 | 267,944 | ||||||
Uniti Group, Inc. | 16,786 | 302,484 | ||||||
Universal Health Realty Income Trust(a) | 2,616 | 156,777 | ||||||
Urban Edge Properties(a) | 5,450 | 112,107 | ||||||
Urstadt Biddle Properties, Inc., Class A | 218 | 4,332 | ||||||
Ventas, Inc. | 16,132 | 829,507 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
VEREIT, Inc. | 66,272 | $ | 450,650 | |||||
Vornado Realty Trust | 6,540 | 444,916 | ||||||
Washington Prime Group, Inc.(a) | 69,760 | 451,347 | ||||||
Washington REIT | 3,706 | 106,436 | ||||||
Weingarten Realty Investors | 6,540 | 179,654 | ||||||
Welltower, Inc.(a) | 16,350 | 873,744 | ||||||
Weyerhaeuser Co. | 25,288 | 930,093 | ||||||
Xenia Hotels & Resorts, Inc. | 20,274 | 417,442 | ||||||
41,021,659 | ||||||||
Food & Staples Retailing – 1.8% | ||||||||
Andersons, Inc. (The)(a) | 8,066 | 263,355 | ||||||
Casey’s General Stores, Inc.(a) | 1,962 | 189,529 | ||||||
Costco Wholesale Corp. | 15,042 | 2,965,681 | ||||||
CVS Health Corp. | 45,344 | 3,166,371 | ||||||
Ingles Markets, Inc., Class A | 4,142 | 141,863 | ||||||
Kroger Co. (The) | 45,562 | 1,147,707 | ||||||
Performance Food Group Co.* | 25,288 | 820,595 | ||||||
PriceSmart, Inc.(a) | 654 | 57,290 | ||||||
Rite Aid Corp.* (a) | 372,780 | 622,543 | ||||||
Smart & Final Stores, Inc.* | 10,028 | 51,143 | ||||||
SpartanNash Co. | 12,426 | 225,905 | ||||||
Sprouts Farmers Market, Inc.* | 31,174 | 780,285 | ||||||
SUPERVALU, Inc.* (a) | 10,900 | 190,859 | ||||||
Sysco Corp. | 13,516 | 845,291 | ||||||
United Natural Foods, Inc.* (a) | 23,544 | 1,059,951 | ||||||
Walgreens Boots Alliance, Inc. | 37,496 | 2,491,609 | ||||||
Walmart, Inc. | 68,452 | 6,055,264 | ||||||
Weis Markets, Inc.(a) | 4,142 | 190,615 | ||||||
21,265,856 | ||||||||
Food Products – 1.1% | ||||||||
Archer-Daniels-Midland Co. | 19,184 | 870,570 | ||||||
B&G Foods, Inc.(a) | 22,454 | 510,829 | ||||||
Bunge Ltd. | 5,450 | 393,653 | ||||||
Calavo Growers, Inc.(a) | 1,308 | 122,560 | ||||||
Cal-Maine Foods, Inc.* | 8,284 | 403,431 | ||||||
Campbell Soup Co.(a) | 7,630 | 311,151 |
See Accompanying Notes to the Financial Statements.
62 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Conagra Brands, Inc. | 12,644 | $ | 468,713 | |||||
Darling Ingredients, Inc.* | 26,814 | 459,592 | ||||||
Dean Foods Co.(a) | 32,700 | 281,547 | ||||||
Flowers Foods, Inc. | 872 | 19,716 | ||||||
Fresh Del Monte Produce, Inc.(a) | 9,374 | 460,732 | ||||||
Freshpet, Inc.* (a) | 872 | 17,266 | ||||||
General Mills, Inc. | 22,454 | 982,138 | ||||||
Hain Celestial Group, Inc. (The)* (a) | 4,578 | 133,357 | ||||||
Hershey Co. (The)(a) | 3,270 | 300,644 | ||||||
Hormel Foods Corp.(a) | 6,322 | 229,172 | ||||||
Ingredion, Inc. | 2,180 | 263,976 | ||||||
J&J Snack Foods Corp. | 1,526 | 209,688 | ||||||
JM Smucker Co. (The)(a) | 3,052 | 348,172 | ||||||
Kellogg Co.(a) | 5,014 | 295,325 | ||||||
Kraft Heinz Co. (The) | 19,402 | 1,093,885 | ||||||
Lancaster Colony Corp.(a) | 1,308 | 164,272 | ||||||
Landec Corp.* | 1,308 | 17,396 | ||||||
McCormick & Co., Inc. (Non-Voting)(a) | 2,834 | 298,732 | ||||||
Mondelez International, Inc., Class A | 37,714 | 1,489,703 | ||||||
Pilgrim’s Pride Corp.* | 5,014 | 108,302 | ||||||
Pinnacle Foods, Inc. | 5,450 | 329,180 | ||||||
Post Holdings, Inc.* (a) | 4,578 | 364,271 | ||||||
Sanderson Farms, Inc.(a) | 5,014 | 557,356 | ||||||
Seaboard Corp.(a) | 24 | 96,169 | ||||||
Tootsie Roll Industries, Inc.(a) | 2,021 | 57,700 | ||||||
TreeHouse Foods, Inc.* (a) | 18,312 | 705,012 | ||||||
Tyson Foods, Inc., Class A | 9,156 | 641,836 | ||||||
13,006,046 | ||||||||
Gas Utilities – 0.2% | ||||||||
Atmos Energy Corp. | 1,526 | 132,594 | ||||||
Chesapeake Utilities Corp. | 3,052 | 231,952 | ||||||
New Jersey Resources Corp.(a) | 8,284 | 342,544 | ||||||
Northwest Natural Gas Co. | 218 | 13,363 | ||||||
ONE Gas, Inc. | 4,142 | 288,780 | ||||||
South Jersey Industries, Inc.(a) | 8,502 | 262,712 |
Investments | Shares | Value | ||||||
Gas Utilities – (continued) | ||||||||
Southwest Gas Holdings, Inc. | 3,270 | $ | 238,677 | |||||
Spire, Inc.(a) | 3,924 | 283,117 | ||||||
UGI Corp. | 3,924 | 189,882 | ||||||
WGL Holdings, Inc. | 4,578 | 389,588 | ||||||
2,373,209 | ||||||||
Health Care Equipment & Supplies – 2.2% | ||||||||
Abaxis, Inc.(a) | 1,090 | 72,561 | ||||||
Abbott Laboratories | 58,424 | 3,396,187 | ||||||
ABIOMED, Inc.* | 2,834 | 852,892 | ||||||
Align Technology, Inc.* | 3,706 | 925,944 | ||||||
Analogic Corp. | 436 | 36,232 | ||||||
AngioDynamics, Inc.* | 1,526 | 29,574 | ||||||
Anika Therapeutics, Inc.* (a) | 1,090 | 47,971 | ||||||
AtriCure, Inc.* (a) | 1,090 | 24,231 | ||||||
Baxter International, Inc. | 20,492 | 1,424,194 | ||||||
Becton Dickinson and Co. | 7,210 | 1,671,783 | ||||||
Boston Scientific Corp.* | 30,956 | 889,056 | ||||||
Cantel Medical Corp. | 2,834 | 317,606 | ||||||
Cardiovascular Systems, Inc.* | 872 | 19,925 | ||||||
Cerus Corp.* | 2,834 | 14,737 | ||||||
CONMED Corp. | 5,232 | 340,237 | ||||||
Cooper Cos., Inc. (The) | 872 | 199,435 | ||||||
Danaher Corp. | 17,004 | 1,705,841 | ||||||
DENTSPLY SIRONA, Inc. | 4,796 | 241,431 | ||||||
DexCom, Inc.* (a) | 3,924 | 287,158 | ||||||
Edwards Lifesciences Corp.* | 5,668 | 721,876 | ||||||
Globus Medical, Inc., Class A* | 5,668 | 290,145 | ||||||
Halyard Health, Inc.* | 8,720 | 413,066 | ||||||
Hill-Rom Holdings, Inc. | 4,360 | 374,219 | ||||||
Hologic, Inc.* (a) | 7,848 | 304,424 | ||||||
ICU Medical, Inc.* | 1,090 | 274,353 | ||||||
IDEXX Laboratories, Inc.* | 2,616 | 508,786 | ||||||
Insulet Corp.* (a) | 2,180 | 187,480 | ||||||
Integer Holdings Corp.* | 10,682 | 586,442 | ||||||
Integra LifeSciences Holdings Corp.* (a) | 5,668 | 349,319 | ||||||
Intuitive Surgical, Inc.* | 2,616 | 1,153,081 | ||||||
Invacare Corp.(a) | 6,976 | 126,963 | ||||||
Lantheus Holdings, Inc.* | 5,450 | 97,010 | ||||||
Masimo Corp.* | 4,796 | 430,345 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 63 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Medtronic plc | 34,008 | $ | 2,725,061 | |||||
Merit Medical Systems, Inc.* | 4,578 | 222,033 | ||||||
Natus Medical, Inc.* | 2,834 | 93,664 | ||||||
Neogen Corp.* (a) | 3,778 | 257,471 | ||||||
Nevro Corp.* | 1,308 | 116,883 | ||||||
NuVasive, Inc.* | 3,924 | 208,796 | ||||||
NxStage Medical, Inc.* | 3,270 | 87,047 | ||||||
OraSure Technologies, Inc.* | 872 | 15,461 | ||||||
Orthofix International NV* | 4,796 | 292,652 | ||||||
Quidel Corp.* | 218 | 12,361 | ||||||
ResMed, Inc. | 2,834 | 268,210 | ||||||
Stryker Corp. | 11,772 | 1,994,412 | ||||||
Surmodics, Inc.* | 436 | 16,285 | ||||||
Teleflex, Inc. | 2,398 | 642,376 | ||||||
Varian Medical Systems, Inc.* | 1,526 | 176,390 | ||||||
West Pharmaceutical Services, Inc. | 4,796 | 423,055 | ||||||
Wright Medical Group NV* (a) | 2,398 | 47,025 | ||||||
Zimmer Biomet Holdings, Inc. | 7,194 | 828,533 | ||||||
26,742,219 | ||||||||
Health Care Providers & Services – 3.1% | ||||||||
Acadia Healthcare Co., Inc.* (a) | 22,890 | 814,426 | ||||||
Aceto Corp.(a) | 4,360 | 10,987 | ||||||
Aetna, Inc. | 11,772 | 2,107,777 | ||||||
Amedisys, Inc.* (a) | 4,796 | 316,968 | ||||||
American Renal Associates Holdings, Inc.* | 2,834 | 41,518 | ||||||
AmerisourceBergen Corp. | 8,066 | 730,618 | ||||||
AMN Healthcare Services, Inc.* (a) | 22,890 | 1,530,196 | ||||||
Anthem, Inc. | 11,990 | 2,829,520 | ||||||
BioTelemetry, Inc.* (a) | 218 | 8,328 | ||||||
Brookdale Senior Living, Inc.* (a) | 64,092 | 464,026 | ||||||
Capital Senior Living Corp.* (a) | 6,758 | 79,406 | ||||||
Cardinal Health, Inc. | 12,208 | 783,387 | ||||||
Centene Corp.* | 9,374 | 1,017,829 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Chemed Corp.(a) | 1,744 | $ | 537,536 | |||||
Cigna Corp. | 6,104 | 1,048,789 | ||||||
Community Health Systems, Inc.* (a) | 49,050 | 185,409 | ||||||
CorVel Corp.* | 654 | 32,079 | ||||||
DaVita, Inc.* (a) | 4,142 | 260,076 | ||||||
Diplomat Pharmacy, Inc.* | 13,516 | 294,514 | ||||||
Encompass Health Corp. | 11,772 | 715,973 | ||||||
Ensign Group, Inc. (The)(a) | 13,080 | 364,540 | ||||||
Envision Healthcare Corp.* (a) | 5,014 | 186,370 | ||||||
Express Scripts Holding Co.* | 23,762 | 1,798,783 | ||||||
HCA Healthcare, Inc. | 13,298 | 1,273,151 | ||||||
Henry Schein, Inc.* (a) | 2,834 | 215,384 | ||||||
Humana, Inc. | 4,142 | 1,218,494 | ||||||
Kindred Healthcare, Inc.* | 27,468 | 244,465 | ||||||
Laboratory Corp. of America Holdings* | 4,796 | 818,917 | ||||||
LHC Group, Inc.* | 4,193 | 312,043 | ||||||
LifePoint Health, Inc.* (a) | 12,208 | 584,763 | ||||||
Magellan Health, Inc.* | 5,886 | 493,541 | ||||||
McKesson Corp. | 10,028 | 1,566,474 | ||||||
MEDNAX, Inc.* (a) | 28,558 | 1,311,098 | ||||||
Molina Healthcare, Inc.* (a) | 14,606 | 1,215,949 | ||||||
Owens & Minor, Inc.(a) | 19,402 | 315,283 | ||||||
Patterson Cos., Inc.(a) | 25,506 | 593,780 | ||||||
Providence Service Corp. (The)* | 2,398 | 181,960 | ||||||
Quest Diagnostics, Inc. | 4,578 | 463,294 | ||||||
R1 RCM, Inc.* | 10,464 | 77,748 | ||||||
Select Medical Holdings Corp.* | 25,288 | 456,448 | ||||||
Surgery Partners, Inc.* (a) | 2,180 | 34,880 | ||||||
Tenet Healthcare Corp.* (a) | 26,596 | 636,708 | ||||||
Tivity Health, Inc.* (a) | 2,616 | 94,045 | ||||||
Triple-S Management Corp., Class B* | 6,322 | 179,229 | ||||||
UnitedHealth Group, Inc. | 30,302 | 7,163,393 | ||||||
Universal Health Services, Inc., Class B | 5,668 | 647,286 | ||||||
US Physical Therapy, Inc. | 1,308 | 119,355 | ||||||
WellCare Health Plans, Inc.* | 3,052 | 626,148 | ||||||
37,002,891 |
See Accompanying Notes to the Financial Statements.
64 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Technology – 0.1% | ||||||||
Allscripts Healthcare Solutions, Inc.* (a) | 62,130 | $ | 721,950 | |||||
athenahealth, Inc.* | 1,090 | 133,492 | ||||||
Cerner Corp.* (a) | 3,052 | 177,779 | ||||||
Computer Programs & Systems, Inc.(a) | 218 | 6,507 | ||||||
HealthStream, Inc. | 436 | 10,111 | ||||||
Medidata Solutions, Inc.* (a) | 3,488 | 248,904 | ||||||
Omnicell, Inc.* | 3,488 | 150,333 | ||||||
Vocera Communications, Inc.* | 4,142 | 103,840 | ||||||
1,552,916 | ||||||||
Hotels, Restaurants & Leisure – 2.0% | ||||||||
Aramark | 2,180 | 81,510 | ||||||
Belmond Ltd., Class A* | 2,180 | 23,326 | ||||||
BJ’s Restaurants, Inc. | 1,962 | 109,578 | ||||||
Bloomin’ Brands, Inc.(a) | 35,970 | 851,050 | ||||||
Boyd Gaming Corp.(a) | 14,170 | 470,586 | ||||||
Brinker International, Inc.(a) | 11,118 | 484,634 | ||||||
Caesars Entertainment Corp.* (a) | 17,222 | 195,470 | ||||||
Carnival Corp. | 22,454 | 1,415,949 | ||||||
Cheesecake Factory, Inc. (The)(a) | 9,374 | 486,979 | ||||||
Chipotle Mexican Grill, Inc.* | 654 | 276,858 | ||||||
Choice Hotels International, Inc. | 1,962 | 157,058 | ||||||
Churchill Downs, Inc. | 1,090 | 299,314 | ||||||
Cracker Barrel Old Country Store, Inc. | 1,744 | 287,045 | ||||||
Darden Restaurants, Inc. | 3,924 | 364,383 | ||||||
Denny’s Corp.* | 12,426 | 217,579 | ||||||
Dine Brands Global, Inc. | 4,578 | 363,219 | ||||||
Domino’s Pizza, Inc. | 2,834 | 685,063 | ||||||
Dunkin’ Brands Group, Inc.(a) | 1,962 | 119,603 | ||||||
Eldorado Resorts, Inc.* (a) | 2,834 | 114,777 | ||||||
Fiesta Restaurant Group, Inc.* | 4,142 | 86,982 | ||||||
Hilton Worldwide Holdings, Inc. | 3,924 | 309,368 | ||||||
Hyatt Hotels Corp., Class A | 3,052 | 234,607 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
ILG, Inc.(a) | 14,606 | $ | 498,503 | |||||
International Speedway Corp., Class A | 1,744 | 71,678 | ||||||
Jack in the Box, Inc. | 2,616 | 234,655 | ||||||
Las Vegas Sands Corp. | 7,630 | 559,508 | ||||||
Marcus Corp. (The) | 4,142 | 123,432 | ||||||
Marriott International, Inc., Class A | 8,938 | 1,221,646 | ||||||
Marriott Vacations Worldwide Corp.(a) | 3,270 | 400,935 | ||||||
McDonald’s Corp. | 25,506 | 4,270,725 | ||||||
MGM Resorts International | 10,900 | 342,478 | ||||||
Norwegian Cruise Line Holdings Ltd.* (a) | 6,758 | 361,350 | ||||||
Papa John’s International, Inc.(a) | 3,052 | 189,224 | ||||||
Penn National Gaming, Inc.* | 23,544 | 713,619 | ||||||
Pinnacle Entertainment, Inc.* | 15,696 | 504,156 | ||||||
Red Robin Gourmet Burgers, Inc.* (a) | 3,052 | 190,292 | ||||||
Red Rock Resorts, Inc., Class A | 5,014 | 151,373 | ||||||
Royal Caribbean Cruises Ltd. | 7,412 | 801,904 | ||||||
Ruth’s Hospitality Group, Inc. | 3,052 | 81,946 | ||||||
Scientific Games Corp.* (a) | 12,862 | 685,545 | ||||||
SeaWorld Entertainment, Inc.* (a) | 18,748 | 282,907 | ||||||
Six Flags Entertainment Corp.(a) | 3,270 | 206,795 | ||||||
Sonic Corp.(a) | 5,014 | 129,913 | ||||||
Starbucks Corp. | 37,932 | 2,183,745 | ||||||
Texas Roadhouse, Inc. | 4,142 | 265,419 | ||||||
Vail Resorts, Inc.(a) | 2,398 | 549,885 | ||||||
Wendy’s Co. (The) | 20,056 | 335,737 | ||||||
Wyndham Worldwide Corp. | 2,180 | 248,978 | ||||||
Wynn Resorts Ltd. | 1,744 | 324,715 | ||||||
Yum! Brands, Inc. | 9,810 | 854,451 | ||||||
Zoe’s Kitchen, Inc.* (a) | 1,962 | 28,939 | ||||||
24,449,391 | ||||||||
Household Durables – 1.0% | ||||||||
Beazer Homes USA, Inc.* | 28,994 | 425,632 | ||||||
Cavco Industries, Inc.* (a) | 654 | 111,409 | ||||||
DR Horton, Inc. | 19,184 | 846,782 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 65 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Household Durables – (continued) | ||||||||
Ethan Allen Interiors, Inc. | 654 | $ | 14,421 | |||||
Garmin Ltd. | 872 | 51,160 | ||||||
Hamilton Beach Brands Holding Co.* | 56 | 1,246 | ||||||
Helen of Troy Ltd.* | 8,066 | 719,084 | ||||||
Hooker Furniture Corp. | 872 | 32,918 | ||||||
Hovnanian Enterprises, Inc., Class A* (a) | 12,208 | 24,538 | ||||||
iRobot Corp.* (a) | 1,526 | 89,057 | ||||||
KB Home | 38,804 | 1,030,246 | ||||||
La-Z-Boy, Inc.(a) | 8,284 | 238,579 | ||||||
Leggett & Platt, Inc.(a) | 2,398 | 97,239 | ||||||
Lennar Corp., Class A | 20,662 | 1,092,813 | ||||||
Lennar Corp., Class B | 429 | 18,314 | ||||||
LGI Homes, Inc.* (a) | 4,796 | 331,883 | ||||||
M/I Homes, Inc.* (a) | 3,052 | 93,025 | ||||||
MDC Holdings, Inc. | 8,708 | 252,619 | ||||||
Meritage Homes Corp.* | 10,028 | 446,246 | ||||||
Mohawk Industries, Inc.* | 1,962 | 411,785 | ||||||
Newell Brands, Inc.(a) | 22,672 | 626,427 | ||||||
NVR, Inc.* (a) | 201 | 623,100 | ||||||
PulteGroup, Inc.(a) | 16,568 | 503,004 | ||||||
Taylor Morrison Home Corp., Class A* (a) | 23,762 | 564,585 | ||||||
Tempur Sealy International, Inc.* (a) | 7,630 | 341,443 | ||||||
Toll Brothers, Inc.(a) | 5,014 | 211,390 | ||||||
TRI Pointe Group, Inc.* (a) | 69,324 | 1,186,134 | ||||||
Tupperware Brands Corp. | 13,298 | 592,559 | ||||||
Universal Electronics, Inc.* (a) | 2,834 | 131,214 | ||||||
Whirlpool Corp.(a) | 3,706 | 574,245 | ||||||
William Lyon Homes, Class A* (a) | 10,682 | 286,919 | ||||||
11,970,016 | ||||||||
Household Products – 0.9% | ||||||||
Central Garden & Pet Co., Class A* | 9,592 | 340,516 | ||||||
Church & Dwight Co., Inc.(a) | 6,540 | 302,148 | ||||||
Clorox Co. (The) | 3,270 | 383,244 | ||||||
Colgate-Palmolive Co. | 20,056 | 1,308,253 |
Investments | Shares | Value | ||||||
Household Products – (continued) | ||||||||
Energizer Holdings, Inc.(a) | 3,270 | $ | 187,567 | |||||
HRG Group, Inc.* | 50,358 | 566,024 | ||||||
Kimberly-Clark Corp. | 17,222 | 1,783,166 | ||||||
Procter & Gamble Co. (The) | 68,452 | 4,951,818 | ||||||
Spectrum Brands Holdings, Inc.(a) | 2,180 | 157,178 | ||||||
WD-40 Co.(a) | 1,526 | 201,279 | ||||||
10,181,193 | ||||||||
Independent Power and Renewable Electricity Producers – 0.2% | ||||||||
AES Corp. | 19,620 | 240,149 | ||||||
NRG Energy, Inc. | 21,582 | 669,042 | ||||||
NRG Yield, Inc., Class A | 654 | 11,517 | ||||||
NRG Yield, Inc., Class C | 26,596 | 473,409 | ||||||
Ormat Technologies, Inc.(a) | 3,270 | 189,333 | ||||||
TerraForm Power, Inc., Class A | 8,938 | 99,659 | ||||||
Vistra Energy Corp.* | 47,758 | 1,091,266 | ||||||
2,774,375 | ||||||||
Industrial Conglomerates – 0.9% | ||||||||
3M Co. | 17,004 | 3,305,408 | ||||||
Carlisle Cos., Inc. | 1,526 | 164,396 | ||||||
General Electric Co. | 268,576 | 3,778,864 | ||||||
Honeywell International, Inc. | 20,928 | 3,027,863 | ||||||
Roper Technologies, Inc. | 2,834 | 748,714 | ||||||
11,025,245 | ||||||||
Insurance – 3.3% | ||||||||
Aflac, Inc. | 43,382 | 1,976,918 | ||||||
Alleghany Corp. | 436 | 250,556 | ||||||
Allstate Corp. (The) | 15,696 | 1,535,383 | ||||||
Ambac Financial Group, Inc.* | 218 | 3,713 | ||||||
American Equity Investment Life Holding Co. | 22,672 | 684,694 | ||||||
American Financial Group, Inc. | 1,526 | 172,774 | ||||||
American International Group, Inc. | 36,406 | 2,038,736 | ||||||
American National Insurance Co. | 2,834 | 341,979 | ||||||
AMERISAFE, Inc. | 1,526 | 90,492 |
See Accompanying Notes to the Financial Statements.
66 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
AmTrust Financial Services, Inc. | 16,786 | $ | 216,372 | |||||
Aon plc | 7,848 | 1,118,105 | ||||||
Arch Capital Group Ltd.* | 4,360 | 349,367 | ||||||
Argo Group International Holdings Ltd.(a) | 8,023 | 468,944 | ||||||
Arthur J Gallagher & Co. | 7,848 | 549,282 | ||||||
Aspen Insurance Holdings Ltd. | 14,606 | 620,025 | ||||||
Assurant, Inc. | 2,834 | 263,052 | ||||||
Assured Guaranty Ltd. | 7,194 | 261,070 | ||||||
Athene Holding Ltd., Class A* | 10,246 | 502,054 | ||||||
Axis Capital Holdings Ltd. | 2,834 | 166,356 | ||||||
Brown & Brown, Inc. | 8,284 | 225,573 | ||||||
Chubb Ltd. | 20,710 | 2,809,726 | ||||||
Cincinnati Financial Corp.(a) | 4,796 | 337,351 | ||||||
CNO Financial Group, Inc. | 55,590 | 1,191,850 | ||||||
Employers Holdings, Inc. | 3,052 | 124,827 | ||||||
Enstar Group Ltd.* (a) | 1,962 | 412,314 | ||||||
Erie Indemnity Co., Class A | 218 | 25,456 | ||||||
Everest Re Group Ltd. | 1,090 | 253,610 | ||||||
FBL Financial Group, Inc., Class A | 2,834 | 220,343 | ||||||
First American Financial Corp. | 8,720 | 445,679 | ||||||
Genworth Financial, Inc., Class A* | 654 | 1,805 | ||||||
Hanover Insurance Group, Inc. (The) | 5,014 | 575,858 | ||||||
Hartford Financial Services Group, Inc. (The) | 13,734 | 739,439 | ||||||
HCI Group, Inc.(a) | 1,090 | 45,660 | ||||||
Health Insurance Innovations, Inc., Class A* | 2,180 | 62,130 | ||||||
Heritage Insurance Holdings, Inc. | 2,180 | 34,226 | ||||||
Horace Mann Educators Corp. | 9,592 | 428,762 | ||||||
Infinity Property & Casualty Corp. | 2,616 | 345,312 | ||||||
Kemper Corp.(a) | 6,976 | 470,880 | ||||||
Lincoln National Corp. | 14,388 | 1,016,368 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Loews Corp. | 15,478 | $ | 811,976 | |||||
Markel Corp.* | 436 | 492,697 | ||||||
Marsh & McLennan Cos., Inc. | 14,388 | 1,172,622 | ||||||
MBIA, Inc.* (a) | 26,814 | 228,455 | ||||||
Mercury General Corp.(a) | 3,488 | 159,506 | ||||||
MetLife, Inc. | 45,126 | 2,151,156 | ||||||
National General Holdings Corp. | 13,516 | 348,307 | ||||||
National Western Life Group, Inc., Class A | 436 | 138,391 | ||||||
Navigators Group, Inc. (The) | 6,104 | 344,876 | ||||||
Old Republic International Corp. | 16,350 | 333,540 | ||||||
Primerica, Inc. | 5,014 | 485,104 | ||||||
Principal Financial Group, Inc. | 10,682 | 632,588 | ||||||
ProAssurance Corp. | 3,270 | 154,671 | ||||||
Progressive Corp. (The) | 21,582 | 1,301,179 | ||||||
Prudential Financial, Inc. | 19,402 | 2,062,821 | ||||||
Reinsurance Group of America, Inc. | 1,308 | 195,415 | ||||||
RenaissanceRe Holdings Ltd.(a) | 1,962 | 266,910 | ||||||
RLI Corp.(a) | 2,834 | 179,336 | ||||||
Safety Insurance Group, Inc. | 2,180 | 174,400 | ||||||
Selective Insurance Group, Inc.(a) | 8,066 | 477,507 | ||||||
Stewart Information Services Corp. | 3,052 | 127,299 | ||||||
Torchmark Corp. | 4,796 | 416,005 | ||||||
Travelers Cos., Inc. (The) | 14,388 | 1,893,461 | ||||||
United Fire Group, Inc. | 5,232 | 263,117 | ||||||
Universal Insurance Holdings, Inc.(a) | 6,976 | 226,371 | ||||||
Unum Group | 8,720 | 421,874 | ||||||
Validus Holdings Ltd. | 18,312 | 1,241,004 | ||||||
White Mountains Insurance Group Ltd. | 218 | 188,633 | ||||||
Willis Towers Watson plc | 3,924 | 582,753 | ||||||
WR Berkley Corp. | 3,052 | 227,557 | ||||||
XL Group Ltd. | 14,606 | 811,948 | ||||||
39,888,520 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 67 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Internet & Direct Marketing Retail – 2.5% | ||||||||
Amazon.com, Inc.* | 11,990 | $ | 18,777,899 | |||||
Booking Holdings, Inc.* | 1,308 | 2,848,824 | ||||||
Expedia Group, Inc. | 3,488 | 401,608 | ||||||
Fluent, Inc.* (a) | 24,198 | 66,545 | ||||||
FTD Cos., Inc.* (a) | 8,066 | 51,945 | ||||||
Groupon, Inc.* (a) | 29,212 | 135,544 | ||||||
Liberty Expedia Holdings, Inc., Class A* (a) | 17,658 | 720,446 | ||||||
Liberty TripAdvisor Holdings, Inc., Class A* | 21,364 | 196,549 | ||||||
Netflix, Inc.* | 14,170 | 4,427,558 | ||||||
Nutrisystem, Inc.(a) | 3,924 | 113,796 | ||||||
PetMed Express, Inc.(a) | 872 | 29,177 | ||||||
Qurate Retail Group, Inc. QVC Group, Class A* | 44,406 | 1,039,544 | ||||||
Shutterfly, Inc.* | 1,744 | 141,125 | ||||||
TripAdvisor, Inc.* (a) | 7,412 | 277,357 | ||||||
Wayfair, Inc., Class A* (a) | 2,180 | 135,814 | ||||||
29,363,731 | ||||||||
Internet Software & Services – 3.2% | ||||||||
Akamai Technologies, Inc.* | 5,450 | 390,492 | ||||||
Alphabet, Inc., Class A* | 7,412 | 7,549,715 | ||||||
Alphabet, Inc., Class C* | 10,682 | 10,867,119 | ||||||
Blucora, Inc.* | 14,606 | 379,756 | ||||||
Care.com, Inc.* | 1,962 | 30,607 | ||||||
Cars.com, Inc.* (a) | 18,312 | 521,526 | ||||||
Cimpress NV* | 2,616 | 376,207 | ||||||
Cornerstone OnDemand, Inc.* | 1,744 | 76,963 | ||||||
CoStar Group, Inc.* | 1,526 | 559,523 | ||||||
eBay, Inc.* | 26,596 | 1,007,456 | ||||||
Endurance International Group Holdings, Inc.* | 13,298 | 97,740 | ||||||
Envestnet, Inc.* | 1,744 | 94,699 | ||||||
Etsy, Inc.* | 3,052 | 91,377 | ||||||
Facebook, Inc., Class A* | 71,068 | 12,223,696 | ||||||
Gogo, Inc.* (a) | 1,090 | 10,268 | ||||||
GrubHub, Inc.* (a) | 3,488 | 352,776 | ||||||
IAC/InterActiveCorp* | 1,090 | 176,733 | ||||||
j2 Global, Inc.(a) | 3,924 | 311,487 | ||||||
LogMeIn, Inc.(a) | 2,180 | 240,236 |
Investments | Shares | Value | ||||||
Internet Software & Services – (continued) | ||||||||
Meet Group, Inc. (The)* (a) | 30,520 | $ | 72,638 | |||||
MercadoLibre, Inc. | 1,090 | 370,175 | ||||||
NIC, Inc.(a) | 2,398 | 35,610 | ||||||
Nutanix, Inc., Class A* | 2,834 | 143,372 | ||||||
Pandora Media, Inc.* (a) | 14,606 | 81,940 | ||||||
Quotient Technology, Inc.* (a) | 2,398 | 32,133 | ||||||
SPS Commerce, Inc.* | 654 | 44,845 | ||||||
Stamps.com, Inc.* | 1,308 | 297,897 | ||||||
Twilio, Inc., Class A* (a) | 2,180 | 92,018 | ||||||
Twitter, Inc.* | 15,914 | 482,353 | ||||||
VeriSign, Inc.* | 2,834 | 332,768 | ||||||
Web.com Group, Inc.* | 12,644 | 235,178 | ||||||
XO Group, Inc.* | 2,398 | 51,989 | ||||||
Yelp, Inc.* | 436 | 19,555 | ||||||
Zillow Group, Inc., Class A* (a) | 6,540 | 316,340 | ||||||
Zillow Group, Inc., Class C* (a) | 2,834 | 137,421 | ||||||
38,104,608 | ||||||||
IT Services – 3.6% | ||||||||
Accenture plc, Class A | 19,838 | 2,999,506 | ||||||
Acxiom Corp.* | 2,616 | 67,964 | ||||||
Alliance Data Systems Corp.(a) | 2,398 | 486,914 | ||||||
Automatic Data Processing, Inc. | 13,080 | 1,544,486 | ||||||
Black Knight, Inc.* | 2,270 | 110,435 | ||||||
Blackhawk Network Holdings, Inc.* (a) | 9,374 | 420,893 | ||||||
Booz Allen Hamilton Holding Corp. | 9,374 | 371,492 | ||||||
Broadridge Financial Solutions, Inc. | 2,834 | 303,833 | ||||||
CACI International, Inc., Class A* | 7,412 | 1,119,583 | ||||||
Cardtronics plc, Class A* (a) | 14,170 | 371,962 | ||||||
Cass Information Systems, Inc. | 478 | 28,909 | ||||||
Cognizant Technology Solutions Corp., Class A | 17,658 | 1,444,778 | ||||||
Conduent, Inc.* | 56,026 | 1,090,266 | ||||||
Convergys Corp.(a) | 25,724 | 600,913 |
See Accompanying Notes to the Financial Statements.
68 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
CoreLogic, Inc.* | 6,322 | $ | 312,939 | |||||
CSG Systems International, Inc. | 5,668 | 242,534 | ||||||
DXC Technology Co. | 9,592 | 988,552 | ||||||
EPAM Systems, Inc.* | 1,962 | 224,355 | ||||||
Euronet Worldwide, Inc.* | 3,706 | 289,476 | ||||||
Everi Holdings, Inc.* | 13,516 | 86,638 | ||||||
EVERTEC, Inc. | 13,734 | 250,645 | ||||||
ExlService Holdings, Inc.* | 1,308 | 75,615 | ||||||
Fidelity National Information Services, Inc. | 6,758 | 641,807 | ||||||
First Data Corp., Class A* (a) | 33,354 | 603,707 | ||||||
Fiserv, Inc.* | 14,824 | 1,050,429 | ||||||
FleetCor Technologies, Inc.* | 2,616 | 542,244 | ||||||
Gartner, Inc.* (a) | 2,834 | 343,736 | ||||||
Genpact Ltd. | 6,976 | 222,465 | ||||||
Global Payments, Inc. | 4,360 | 492,898 | ||||||
International Business Machines Corp. | 38,804 | 5,625,028 | ||||||
Jack Henry & Associates, Inc. | 1,962 | 234,420 | ||||||
Leidos Holdings, Inc. | 5,450 | 350,053 | ||||||
ManTech International Corp., Class A | 4,796 | 283,396 | ||||||
Mastercard, Inc., Class A | 25,942 | 4,624,680 | ||||||
MAXIMUS, Inc. | 4,578 | 309,610 | ||||||
Net 1 UEPS Technologies, Inc.* (a) | 16,350 | 134,724 | ||||||
Paychex, Inc. | 8,720 | 528,170 | ||||||
PayPal Holdings, Inc.* | 29,430 | 2,195,772 | ||||||
Perficient, Inc.* | 13,080 | 323,468 | ||||||
Presidio, Inc.* | 6,322 | 96,853 | ||||||
Sabre Corp. | 5,232 | 107,988 | ||||||
Science Applications International Corp. | 3,270 | 280,533 | ||||||
Square, Inc., Class A* (a) | 2,180 | 103,201 | ||||||
Sykes Enterprises, Inc.* | 10,464 | 300,945 | ||||||
Syntel, Inc.* (a) | 11,336 | 327,384 | ||||||
Teradata Corp.* (a) | 13,734 | 561,995 | ||||||
Total System Services, Inc. | 5,232 | 439,802 | ||||||
Travelport Worldwide Ltd.(a) | 39,676 | 680,047 | ||||||
TTEC Holdings, Inc. | 4,578 | 146,496 | ||||||
Unisys Corp.* (a) | 7,848 | 87,898 |
Investments | Shares | Value | ||||||
IT Services – (continued) | ||||||||
Virtusa Corp.* | 7,848 | $ | 377,803 | |||||
Visa, Inc., Class A | 52,538 | 6,666,021 | ||||||
Western Union Co. (The) | 17,876 | 353,051 | ||||||
WEX, Inc.* | 1,744 | 282,388 | ||||||
Worldpay, Inc.* | 5,014 | 407,237 | ||||||
43,158,937 | ||||||||
Leisure Products – 0.2% | ||||||||
Acushnet Holdings Corp. | 5,886 | 142,206 | ||||||
American Outdoor Brands Corp.* (a) | 23,326 | 256,586 | ||||||
Brunswick Corp. | 5,668 | 339,400 | ||||||
Callaway Golf Co.(a) | 5,886 | 101,592 | ||||||
Hasbro, Inc. | 3,052 | 268,851 | ||||||
Mattel, Inc.(a) | 10,682 | 158,094 | ||||||
Nautilus, Inc.* | 6,104 | 88,813 | ||||||
Polaris Industries, Inc.(a) | 2,616 | 274,209 | ||||||
Sturm Ruger & Co., Inc.(a) | 4,796 | 264,979 | ||||||
Vista Outdoor, Inc.* (a) | 18,966 | 317,680 | ||||||
2,212,410 | ||||||||
Life Sciences Tools & Services – 0.5% | ||||||||
Agilent Technologies, Inc. | 5,886 | 386,946 | ||||||
Bio-Rad Laboratories, Inc., Class A* | 218 | 55,309 | ||||||
Bio-Techne Corp. | 2,398 | 361,882 | ||||||
Bruker Corp. | 5,232 | 154,501 | ||||||
Cambrex Corp.* (a) | 4,360 | 230,862 | ||||||
Charles River Laboratories International, Inc.* | 3,270 | 340,701 | ||||||
Illumina, Inc.* | 3,924 | 945,409 | ||||||
IQVIA Holdings, Inc.* | 5,232 | 501,017 | ||||||
Mettler-Toledo International, Inc.* | 872 | 488,259 | ||||||
NeoGenomics, Inc.* (a) | 4,578 | 43,857 | ||||||
PerkinElmer, Inc. | 1,962 | 143,932 | ||||||
Thermo Fisher Scientific, Inc. | 11,554 | 2,430,384 | ||||||
Waters Corp.* | 1,526 | 287,514 | ||||||
6,370,573 | ||||||||
Machinery – 2.1% | ||||||||
Actuant Corp., Class A(a) | 1,090 | 25,669 | ||||||
AGCO Corp. | 3,270 | 204,964 | ||||||
Alamo Group, Inc. | 872 | 95,458 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 69 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Albany International Corp., Class A | 3,924 | $ | 232,105 | |||||
Altra Industrial Motion Corp. | 1,308 | 54,478 | ||||||
American Railcar Industries, Inc.(a) | 1,308 | 49,639 | ||||||
Astec Industries, Inc.(a) | 1,744 | 96,897 | ||||||
Barnes Group, Inc. | 6,976 | 387,377 | ||||||
Briggs & Stratton Corp. | 3,052 | 55,028 | ||||||
Caterpillar, Inc. | 19,620 | 2,832,343 | ||||||
Chart Industries, Inc.* (a) | 7,630 | 432,926 | ||||||
CIRCOR International, Inc.(a) | 2,398 | 101,603 | ||||||
Colfax Corp.* | 11,118 | 344,769 | ||||||
Columbus McKinnon Corp. | 872 | 31,287 | ||||||
Crane Co. | 5,450 | 455,838 | ||||||
Cummins, Inc. | 8,066 | 1,289,431 | ||||||
Deere & Co. | 10,682 | 1,445,595 | ||||||
Douglas Dynamics, Inc. | 2,180 | 91,015 | ||||||
Dover Corp. | 5,668 | 525,424 | ||||||
Energy Recovery, Inc.* (a) | 4,796 | 40,718 | ||||||
EnPro Industries, Inc. | 1,090 | 81,913 | ||||||
ESCO Technologies, Inc.(a) | 654 | 36,526 | ||||||
Federal Signal Corp. | 5,014 | 108,603 | ||||||
Flowserve Corp.(a) | 654 | 29,044 | ||||||
Fortive Corp. | 6,976 | 490,483 | ||||||
Franklin Electric Co., Inc. | 1,526 | 62,566 | ||||||
Global Brass & Copper Holdings, Inc. | 6,104 | 183,120 | ||||||
Gorman-Rupp Co. (The) | 1,090 | 34,313 | ||||||
Graco, Inc.(a) | 2,616 | 115,078 | ||||||
Greenbrier Cos., Inc. (The) | 8,284 | 363,253 | ||||||
Hillenbrand, Inc. | 10,464 | 485,006 | ||||||
IDEX Corp. | 1,526 | 203,965 | ||||||
Illinois Tool Works, Inc. | 10,464 | 1,486,097 | ||||||
Ingersoll-Rand plc | 6,322 | 530,353 | ||||||
ITT, Inc. | 6,104 | 298,425 | ||||||
John Bean Technologies Corp.(a) | 3,706 | 399,321 | ||||||
Kadant, Inc. | 3,270 | 301,658 | ||||||
Lincoln Electric Holdings, Inc. | 1,526 | 126,460 | ||||||
Lindsay Corp.(a) | 218 | 19,153 | ||||||
Lydall, Inc.* | 4,142 | 184,733 | ||||||
Manitowoc Co., Inc. (The)* | 4,249 | 104,738 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Meritor, Inc.* | 21,582 | $ | 420,202 | |||||
Middleby Corp. (The)* (a) | 3,052 | 384,064 | ||||||
Mueller Industries, Inc.(a) | 4,796 | 130,355 | ||||||
Mueller Water Products, Inc., Class A | 10,900 | 106,711 | ||||||
Navistar International Corp.* | 10,900 | 379,429 | ||||||
NN, Inc. | 8,720 | 177,016 | ||||||
Nordson Corp.(a) | 872 | 112,139 | ||||||
Oshkosh Corp. | 4,360 | 314,618 | ||||||
PACCAR, Inc. | 14,388 | 916,084 | ||||||
Parker-Hannifin Corp. | 5,014 | 825,405 | ||||||
Pentair plc | 2,616 | 176,004 | ||||||
Proto Labs, Inc.* | 436 | 51,949 | ||||||
RBC Bearings, Inc.* | 1,744 | 202,967 | ||||||
Rexnord Corp.* | 36,188 | 995,532 | ||||||
Snap-on, Inc.(a) | 1,308 | 189,987 | ||||||
SPX Corp.* | 21,364 | 675,957 | ||||||
SPX FLOW, Inc.* | 9,374 | 421,830 | ||||||
Standex International Corp. | 1,962 | 190,216 | ||||||
Stanley Black & Decker, Inc. | 4,578 | 648,199 | ||||||
Sun Hydraulics Corp. | 872 | 42,353 | ||||||
Tennant Co.(a) | 1,090 | 80,660 | ||||||
Terex Corp.(a) | 10,464 | 382,145 | ||||||
Timken Co. (The) | 9,592 | 410,058 | ||||||
Titan International, Inc. | 6,976 | 71,853 | ||||||
Toro Co. (The) | 7,848 | 458,245 | ||||||
TriMas Corp.* | 9,810 | 265,851 | ||||||
Trinity Industries, Inc.(a) | 16,568 | 528,022 | ||||||
Wabash National Corp.(a) | 17,658 | 354,219 | ||||||
WABCO Holdings, Inc.* | 1,526 | 196,839 | ||||||
Wabtec Corp.(a) | 1,744 | 154,885 | ||||||
Watts Water Technologies, Inc., Class A | 2,180 | 162,410 | ||||||
Woodward, Inc. | 4,360 | 313,658 | ||||||
Xylem, Inc. | 3,270 | 238,383 | ||||||
25,415,617 | ||||||||
Marine – 0.0%(c) | ||||||||
Kirby Corp.* (a) | 436 | 37,191 | ||||||
Matson, Inc.(a) | 11,554 | 337,723 | ||||||
374,914 |
See Accompanying Notes to the Financial Statements.
70 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – 2.5% | ||||||||
Altice USA, Inc., Class A* (a) | 5,014 | $ | 89,751 | |||||
AMC Entertainment Holdings, Inc., Class A(a) | 19,620 | 342,369 | ||||||
AMC Networks, Inc., Class A* (a) | 20,274 | 1,054,248 | ||||||
CBS Corp. (Non-Voting), Class B | 17,004 | 836,597 | ||||||
Charter Communications, Inc., Class A* | 6,758 | 1,833,378 | ||||||
Cinemark Holdings, Inc.(a) | 32,046 | 1,255,242 | ||||||
Comcast Corp., Class A | 211,242 | 6,630,886 | ||||||
Discovery, Inc., Class A* | 218 | 5,156 | ||||||
Discovery, Inc., Class C* | 21,668 | 481,463 | ||||||
DISH Network Corp., Class A* | 10,246 | 343,753 | ||||||
Entercom Communications Corp., Class A(a) | 42,292 | 429,264 | ||||||
Entravision Communications Corp., Class A | 13,080 | 60,822 | ||||||
EW Scripps Co. (The), Class A(a) | 3,924 | 43,674 | ||||||
Gannett Co., Inc.(a) | 18,748 | 181,293 | ||||||
GCI Liberty, Inc., Class A* | 1,090 | 48,614 | ||||||
Gray Television, Inc.* (a) | 21,800 | 246,340 | ||||||
IMAX Corp.* | 218 | 5,058 | ||||||
Interpublic Group of Cos., Inc. (The) | 11,772 | 277,701 | ||||||
John Wiley & Sons, Inc., Class A | 4,578 | 301,919 | ||||||
Liberty Broadband Corp., Class A* | 218 | 15,365 | ||||||
Liberty Media Corp-Liberty Braves, Class C* (a) | 5,450 | 120,118 | ||||||
Liberty Media Corp-Liberty Formula One, Class A* (a) | 13,516 | 379,935 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class A* | 2,398 | 100,164 | ||||||
Liberty Media Corp-Liberty SiriusXM, Class C* | 5,232 | 217,965 | ||||||
Lions Gate Entertainment Corp., Class A | 2,180 | 54,260 | ||||||
Lions Gate Entertainment Corp., Class B | 2,180 | 50,184 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
Live Nation Entertainment, Inc.* | 10,028 | $ | 395,805 | |||||
Meredith Corp.(a) | 11,990 | 621,082 | ||||||
MSG Networks, Inc., Class A* | 17,658 | 361,989 | ||||||
National CineMedia, Inc. | 19,184 | 109,732 | ||||||
New Media Investment Group, Inc.(a) | 17,004 | 281,926 | ||||||
New York Times Co. (The), Class A(a) | 12,862 | 301,614 | ||||||
News Corp., Class A | 4,360 | 69,673 | ||||||
News Corp., Class B | 1,308 | 21,255 | ||||||
Nexstar Media Group, Inc., Class A(a) | 2,180 | 135,705 | ||||||
Omnicom Group, Inc.(a) | 8,720 | 642,315 | ||||||
Scholastic Corp. | 4,142 | 171,479 | ||||||
Sinclair Broadcast Group, Inc., Class A(a) | 24,852 | 704,554 | ||||||
Sirius XM Holdings, Inc.(a) | 57,116 | 361,544 | ||||||
TEGNA, Inc. | 71,722 | 758,102 | ||||||
Time Warner, Inc. | 20,710 | 1,963,308 | ||||||
Tribune Media Co., Class A | 11,118 | 420,149 | ||||||
Twenty-First Century Fox, Inc., Class A | 50,576 | 1,849,059 | ||||||
Twenty-First Century Fox, Inc., Class B | 13,952 | 503,249 | ||||||
Viacom, Inc., Class A(a) | 2,834 | 100,749 | ||||||
Viacom, Inc., Class B | 10,464 | 315,594 | ||||||
Walt Disney Co. (The) | 39,458 | 3,958,821 | ||||||
WideOpenWest, Inc.* (a) | 9,374 | 59,337 | ||||||
World Wrestling Entertainment, Inc., Class A(a) | 3,488 | 138,788 | ||||||
29,651,348 | ||||||||
Metals & Mining – 0.9% | ||||||||
AK Steel Holding Corp.* (a) | 100,934 | 463,287 | ||||||
Alcoa Corp.* | 1,962 | 100,454 | ||||||
Allegheny Technologies, Inc.* (a) | 18,748 | 498,134 | ||||||
Carpenter Technology Corp.(a) | 7,630 | 406,374 | ||||||
Century Aluminum Co.* (a) | 18,748 | 327,528 | ||||||
Cleveland-Cliffs, Inc.* (a) | 96,356 | 714,961 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 71 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Coeur Mining, Inc.* | 19,838 | $ | 150,174 | |||||
Commercial Metals Co.(a) | 32,046 | 673,286 | ||||||
Freeport-McMoRan, Inc. | 57,552 | 875,366 | ||||||
Hecla Mining Co. | 44,036 | 168,658 | ||||||
Kaiser Aluminum Corp.(a) | 3,270 | 322,226 | ||||||
Materion Corp. | 1,308 | 66,381 | ||||||
McEwen Mining, Inc.* (a) | 15,696 | 32,648 | ||||||
Newmont Mining Corp. | 19,184 | 753,739 | ||||||
Nucor Corp. | 10,028 | 617,925 | ||||||
Reliance Steel & Aluminum Co. | 436 | 38,333 | ||||||
Royal Gold, Inc.(a) | 1,962 | 174,226 | ||||||
Ryerson Holding Corp.* | 7,194 | 72,300 | ||||||
Schnitzer Steel Industries, Inc., Class A | 9,374 | 276,064 | ||||||
Steel Dynamics, Inc. | 3,052 | 136,760 | ||||||
SunCoke Energy, Inc.* | 32,264 | 370,713 | ||||||
TimkenSteel Corp.* (a) | 25,288 | 424,586 | ||||||
United States Steel Corp. | 54,500 | 1,843,735 | ||||||
Worthington Industries, Inc.(a) | 14,388 | 640,698 | ||||||
10,148,556 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.7% | ||||||||
AG Mortgage Investment Trust, Inc. | 15,260 | 269,797 | ||||||
AGNC Investment Corp. | 32,482 | 614,559 | ||||||
Annaly Capital Management, Inc. | 77,826 | 807,056 | ||||||
Anworth Mortgage Asset Corp. | 35,970 | 170,138 | ||||||
Apollo Commercial Real Estate Finance, Inc.(a) | 17,440 | 314,269 | ||||||
ARMOUR Residential REIT, Inc. | 15,914 | 360,134 | ||||||
Blackstone Mortgage Trust, Inc., Class A(a) | 33,572 | 1,035,696 | ||||||
Capstead Mortgage Corp.(a) | 37,496 | 329,965 | ||||||
Chimera Investment Corp. | 70,196 | 1,227,728 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a) | 1,526 | 29,620 |
Investments | Shares | Value | ||||||
Mortgage Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Invesco Mortgage Capital, Inc.(a) | 33,354 | $ | 541,335 | |||||
Ladder Capital Corp. | 21,364 | 296,959 | ||||||
MFA Financial, Inc. | 89,380 | 672,138 | ||||||
MTGE Investment Corp. | 6,758 | 122,658 | ||||||
New Residential Investment Corp. | 31,828 | 556,353 | ||||||
New York Mortgage Trust, Inc.(a) | 42,946 | 260,253 | ||||||
Orchid Island Capital, Inc.(a) | 18,966 | 132,762 | ||||||
PennyMac Mortgage Investment Trust(a) | 21,146 | 371,958 | ||||||
Redwood Trust, Inc.(a) | 17,440 | 267,530 | ||||||
Resource Capital Corp. | 6,322 | 61,703 | ||||||
Starwood Property Trust, Inc. | 872 | 18,277 | ||||||
Two Harbors Investment Corp. | 9,374 | 143,047 | ||||||
Western Asset Mortgage Capital Corp. | 5,450 | 54,227 | ||||||
8,658,162 | ||||||||
Multiline Retail – 0.5% | ||||||||
Big Lots, Inc.(a) | 8,066 | 342,402 | ||||||
Dillard’s, Inc., Class A(a) | 4,796 | 357,542 | ||||||
Dollar General Corp. | 10,682 | 1,031,133 | ||||||
Dollar Tree, Inc.* | 14,170 | 1,358,761 | ||||||
JC Penney Co., Inc.* (a) | 109,000 | 317,190 | ||||||
Kohl’s Corp. | 6,540 | 406,265 | ||||||
Macy’s, Inc. | 8,938 | 277,704 | ||||||
Nordstrom, Inc.(a) | 5,886 | 297,596 | ||||||
Target Corp. | 28,558 | 2,073,311 | ||||||
6,461,904 | ||||||||
Multi-Utilities – 0.7% | ||||||||
Ameren Corp. | 8,502 | 498,387 | ||||||
Avista Corp.(a) | 9,374 | 486,136 | ||||||
Black Hills Corp.(a) | 4,360 | 247,125 | ||||||
CenterPoint Energy, Inc.(a) | 11,336 | 287,141 | ||||||
CMS Energy Corp. | 6,322 | 298,335 | ||||||
Consolidated Edison, Inc. | 11,118 | 890,885 | ||||||
Dominion Energy, Inc.(a) | 17,440 | 1,160,806 | ||||||
DTE Energy Co. | 6,976 | 735,270 | ||||||
MDU Resources Group, Inc. | 218 | 6,141 | ||||||
NiSource, Inc.(a) | 5,668 | 138,243 |
See Accompanying Notes to the Financial Statements.
72 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Multi-Utilities – (continued) | ||||||||
NorthWestern Corp.(a) | 10,682 | $ | 586,869 | |||||
Public Service Enterprise Group, Inc. | 22,236 | 1,159,607 | ||||||
SCANA Corp. | 8,066 | 296,587 | ||||||
Sempra Energy(a) | 5,886 | 658,055 | ||||||
Unitil Corp. | 2,616 | 127,112 | ||||||
Vectren Corp.(a) | 6,976 | 490,204 | ||||||
WEC Energy Group, Inc. | 11,554 | 742,691 | ||||||
8,809,594 | ||||||||
Oil, Gas & Consumable Fuels – 5.0% | ||||||||
Anadarko Petroleum Corp. | 15,914 | 1,071,330 | ||||||
Andeavor | 9,374 | 1,296,612 | ||||||
Antero Resources Corp.* | 7,194 | 136,686 | ||||||
Arch Coal, Inc., Class A(a) | 8,284 | 669,596 | ||||||
Cabot Oil & Gas Corp. | 16,132 | 385,716 | ||||||
California Resources Corp.* (a) | 13,734 | 349,530 | ||||||
Callon Petroleum Co.* (a) | 14,388 | 200,137 | ||||||
Cheniere Energy, Inc.* (a) | 7,194 | 418,403 | ||||||
Chesapeake Energy Corp.* (a) | 299,750 | 890,258 | ||||||
Chevron Corp. | 54,500 | 6,818,495 | ||||||
Cimarex Energy Co. | 2,398 | 241,215 | ||||||
Clean Energy Fuels Corp.* | 78,262 | 126,002 | ||||||
Cloud Peak Energy, Inc.* | 22,890 | 73,019 | ||||||
CNX Resources Corp.* | 13,952 | 207,327 | ||||||
Concho Resources, Inc.* (a) | 3,488 | 548,348 | ||||||
ConocoPhillips | 34,880 | 2,284,640 | ||||||
Continental Resources, Inc.* (a) | 4,142 | 273,621 | ||||||
CVR Energy, Inc.(a) | 654 | 22,563 | ||||||
Delek US Energy, Inc. | 13,516 | 640,253 | ||||||
Denbury Resources, Inc.* (a) | 42,946 | 141,292 | ||||||
Devon Energy Corp. | 13,734 | 498,956 | ||||||
Diamondback Energy, Inc.* | 2,834 | 364,027 | ||||||
Dorian LPG Ltd.* | 765 | 5,500 | ||||||
Eclipse Resources Corp.* | 28,340 | 37,692 | ||||||
Energen Corp.* | 872 | 57,064 | ||||||
Energy XXI Gulf Coast, Inc.* | 17,876 | 103,323 | ||||||
EOG Resources, Inc. | 20,274 | 2,395,779 | ||||||
EP Energy Corp., Class A* (a) | 10,900 | 20,056 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
EQT Corp. | 5,668 | $ | 284,477 | |||||
Extraction Oil & Gas, Inc.* (a) | 6,540 | 92,345 | ||||||
Exxon Mobil Corp. | 192,276 | 14,949,459 | ||||||
Gener8 Maritime, Inc.* | 28,340 | 163,238 | ||||||
Gran Tierra Energy, Inc.* (a) | 131,236 | 434,391 | ||||||
Green Plains, Inc.(a) | 11,990 | 223,014 | ||||||
Gulfport Energy Corp.* | 436 | 4,055 | ||||||
Halcon Resources Corp.* (a) | 13,298 | 71,410 | ||||||
Hess Corp.(a) | 6,976 | 397,562 | ||||||
HighPoint Resources Corp.* (a) | 26,596 | 183,778 | ||||||
HollyFrontier Corp. | 15,478 | 939,360 | ||||||
Kinder Morgan, Inc. | 60,386 | 955,307 | ||||||
Kosmos Energy Ltd.* | 4,142 | 29,160 | ||||||
Marathon Oil Corp. | 54,064 | 986,668 | ||||||
Marathon Petroleum Corp. | 25,724 | 1,926,985 | ||||||
Matador Resources Co.* (a) | 5,232 | 171,296 | ||||||
Midstates Petroleum Co., Inc.* | 9,156 | 128,092 | ||||||
Murphy Oil Corp.(a) | 872 | 26,256 | ||||||
Newfield Exploration Co.* | 4,360 | 129,928 | ||||||
Noble Energy, Inc. | 14,170 | 479,371 | ||||||
Oasis Petroleum, Inc.* (a) | 85,020 | 937,771 | ||||||
Occidental Petroleum Corp. | 13,734 | 1,061,089 | ||||||
ONEOK, Inc. | 4,796 | 288,815 | ||||||
Parsley Energy, Inc., Class A* | 6,758 | 202,943 | ||||||
PBF Energy, Inc., Class A | 46,652 | 1,788,171 | ||||||
PDC Energy, Inc.* (a) | 1,308 | 70,030 | ||||||
Peabody Energy Corp.(a) | 32,482 | 1,196,962 | ||||||
Phillips 66 | 16,568 | 1,844,184 | ||||||
Pioneer Natural Resources Co. | 4,578 | 922,696 | ||||||
QEP Resources, Inc.* | 86,764 | 1,056,786 | ||||||
Resolute Energy Corp.* (a) | 4,142 | 138,301 | ||||||
REX American Resources Corp.* | 1,308 | 97,812 | ||||||
RSP Permian, Inc.* | 1,962 | 97,335 | ||||||
Sanchez Energy Corp.* (a) | 34,880 | 107,082 | ||||||
SemGroup Corp., Class A(a) | 3,270 | 82,240 | ||||||
SM Energy Co.(a) | 6,976 | 167,075 | ||||||
Southwestern Energy Co.* | 175,926 | 721,297 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 73 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
SRC Energy, Inc.* (a) | 58,642 | $ | 647,408 | |||||
Targa Resources Corp. | 9,374 | 440,297 | ||||||
Ultra Petroleum Corp.* | 16,132 | 39,039 | ||||||
Valero Energy Corp. | 19,838 | 2,200,629 | ||||||
W&T Offshore, Inc.* (a) | 16,786 | 102,395 | ||||||
Whiting Petroleum Corp.* (a) | 32,482 | 1,325,915 | ||||||
WildHorse Resource Development Corp.* (a) | 4,796 | 125,415 | ||||||
Williams Cos., Inc. (The) | 12,426 | 319,721 | ||||||
World Fuel Services Corp. | 22,672 | 486,768 | ||||||
WPX Energy, Inc.* | 35,098 | 599,825 | ||||||
59,921,593 | ||||||||
Paper & Forest Products – 0.3% | ||||||||
Boise Cascade Co. | 5,450 | 226,720 | ||||||
Clearwater Paper Corp.* (a) | 4,142 | 97,958 | ||||||
Domtar Corp.(a) | 20,274 | 890,029 | ||||||
KapStone Paper and Packaging Corp. | 25,942 | 892,924 | ||||||
Louisiana-Pacific Corp. | 36,842 | 1,043,734 | ||||||
Mercer International, Inc. | 18,094 | 242,459 | ||||||
Neenah, Inc. | 2,616 | 204,048 | ||||||
PH Glatfelter Co. | 2,616 | 54,648 | ||||||
Schweitzer-Mauduit International, Inc. | 4,360 | 170,171 | ||||||
Verso Corp., Class A* | 4,578 | 82,679 | ||||||
3,905,370 | ||||||||
Personal Products – 0.3% | ||||||||
Avon Products, Inc.* | 124,914 | 316,032 | ||||||
Coty, Inc., Class A | 12,862 | 223,156 | ||||||
Edgewell Personal Care Co.* (a) | 17,222 | 758,629 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 5,886 | 871,658 | ||||||
Herbalife Nutrition Ltd.* | 5,668 | 599,278 | ||||||
Inter Parfums, Inc. | 2,398 | 122,778 | ||||||
Medifast, Inc. | 1,308 | 131,297 | ||||||
Nu Skin Enterprises, Inc., Class A | 6,540 | 465,321 | ||||||
Revlon, Inc., Class A* (a) | 2,398 | 54,674 |
Investments | Shares | Value | ||||||
Personal Products – (continued) | ||||||||
USANA Health Sciences, Inc.* | 1,526 | $ | 161,069 | |||||
3,703,892 | ||||||||
Pharmaceuticals – 3.3% | ||||||||
Aerie Pharmaceuticals, Inc.* (a) | 1,090 | 55,808 | ||||||
Akorn, Inc.* | 1,962 | 28,312 | ||||||
Allergan plc | 15,914 | 2,445,186 | ||||||
Bristol-Myers Squibb Co. | 52,320 | 2,727,442 | ||||||
Collegium Pharmaceutical, Inc.* (a) | 6,540 | 154,671 | ||||||
Depomed, Inc.* (a) | 22,890 | 143,749 | ||||||
Eli Lilly & Co. | 24,416 | 1,979,405 | ||||||
Endo International plc* | 872 | 4,996 | ||||||
Horizon Pharma plc* | 40,548 | 536,855 | ||||||
Impax Laboratories, Inc.* (a) | 2,834 | 53,279 | ||||||
Innoviva, Inc.* (a) | 22,018 | 319,261 | ||||||
Jazz Pharmaceuticals plc* | 2,616 | 397,737 | ||||||
Johnson & Johnson | 76,300 | 9,651,187 | ||||||
Lannett Co., Inc.* (a) | 10,246 | 159,838 | ||||||
Mallinckrodt plc* (a) | 31,828 | 413,764 | ||||||
Medicines Co. (The)* (a) | 3,270 | 98,394 | ||||||
Merck & Co., Inc. | 120,990 | 7,122,681 | ||||||
Mylan NV* | 22,018 | 853,418 | ||||||
Nektar Therapeutics* | 5,886 | 492,423 | ||||||
Pacira Pharmaceuticals, Inc.* (a) | 1,090 | 36,079 | ||||||
Perrigo Co. plc | 6,758 | 528,070 | ||||||
Pfizer, Inc. | 275,988 | 10,103,921 | ||||||
Prestige Brands Holdings, Inc.* (a) | 3,706 | 109,105 | ||||||
Supernus Pharmaceuticals, Inc.* (a) | 436 | 20,448 | ||||||
Zoetis, Inc. | 12,208 | 1,019,124 | ||||||
39,455,153 | ||||||||
Professional Services – 0.5% | ||||||||
ASGN, Inc.* | 7,412 | 597,630 | ||||||
CBIZ, Inc.* | 10,246 | 190,576 | ||||||
Dun & Bradstreet Corp. (The) | 654 | 75,413 | ||||||
Equifax, Inc. | 2,834 | 317,550 | ||||||
Exponent, Inc. | 2,616 | 226,022 | ||||||
Forrester Research, Inc. | 436 | 17,353 |
See Accompanying Notes to the Financial Statements.
74 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Professional Services – (continued) | ||||||||
FTI Consulting, Inc.* | 7,412 | $ | 432,861 | |||||
GP Strategies Corp.* | 1,090 | 22,726 | ||||||
Heidrick & Struggles International, Inc. | 1,526 | 57,454 | ||||||
Huron Consulting Group, Inc.* | 4,142 | 155,118 | ||||||
ICF International, Inc. | 3,706 | 248,673 | ||||||
IHS Markit Ltd.* (a) | 4,142 | 203,496 | ||||||
Insperity, Inc. | 4,360 | 349,890 | ||||||
Kelly Services, Inc., Class A | 2,834 | 82,923 | ||||||
Kforce, Inc. | 3,270 | 86,818 | ||||||
Korn/Ferry International | 11,336 | 606,023 | ||||||
ManpowerGroup, Inc. | 1,308 | 125,202 | ||||||
Mistras Group, Inc.* | 218 | 4,244 | ||||||
Navigant Consulting, Inc.* (a) | 16,132 | 345,063 | ||||||
Nielsen Holdings plc | 13,298 | 418,222 | ||||||
Resources Connection, Inc. | 3,052 | 47,764 | ||||||
Robert Half International, Inc. | 2,398 | 145,678 | ||||||
RPX Corp. | 8,938 | 96,798 | ||||||
TriNet Group, Inc.* (a) | 2,180 | 112,597 | ||||||
TrueBlue, Inc.* | 16,132 | 429,918 | ||||||
Verisk Analytics, Inc.* | 3,706 | 394,504 | ||||||
WageWorks, Inc.* | 1,744 | 72,638 | ||||||
5,863,154 | ||||||||
Real Estate Management & Development – 0.2% | ||||||||
CBRE Group, Inc., Class A* | 5,668 | 256,817 | ||||||
HFF, Inc., Class A(a) | 3,052 | 107,247 | ||||||
Howard Hughes Corp. (The)* (a) | 872 | 117,982 | ||||||
Jones Lang LaSalle, Inc. | 2,180 | 369,532 | ||||||
Kennedy-Wilson Holdings, Inc.(a) | 36,842 | 698,156 | ||||||
Realogy Holdings Corp.(a) | 16,132 | 400,235 | ||||||
St Joe Co. (The)* (a) | 7,194 | 124,096 | ||||||
2,074,065 | ||||||||
Road & Rail – 0.9% | ||||||||
AMERCO(a) | 436 | 147,159 | ||||||
ArcBest Corp.(a) | 7,412 | 237,925 | ||||||
Avis Budget Group, Inc.* (a) | 24,198 | 1,195,623 |
Investments | Shares | Value | ||||||
Road & Rail – (continued) | ||||||||
CSX Corp. | 33,136 | $ | 1,967,947 | |||||
Genesee & Wyoming, Inc., Class A* (a) | 436 | 31,043 | ||||||
Heartland Express, Inc.(a) | 3,052 | 54,417 | ||||||
Hertz Global Holdings, Inc.* (a) | 654 | 14,323 | ||||||
JB Hunt Transport Services, Inc. | 1,526 | 179,198 | ||||||
Kansas City Southern | 1,308 | 139,472 | ||||||
Knight-Swift Transportation Holdings, Inc.(a) | 11,772 | 459,226 | ||||||
Landstar System, Inc. | 2,834 | 288,076 | ||||||
Marten Transport Ltd. | 7,412 | 144,534 | ||||||
Norfolk Southern Corp. | 10,900 | 1,563,823 | ||||||
Old Dominion Freight Line, Inc.(a) | 3,488 | 466,904 | ||||||
Ryder System, Inc. | 12,426 | 837,885 | ||||||
Saia, Inc.* | 6,104 | 403,169 | ||||||
Union Pacific Corp. | 21,146 | 2,825,740 | ||||||
Werner Enterprises, Inc.(a) | 1,090 | 37,387 | ||||||
10,993,851 | ||||||||
Semiconductors & Semiconductor Equipment – 3.4% | ||||||||
Advanced Energy Industries, Inc.* (a) | 5,450 | 324,547 | ||||||
Advanced Micro Devices, Inc.* (a) | 52,102 | 566,870 | ||||||
Ambarella, Inc.* (a) | 436 | 20,313 | ||||||
Amkor Technology, Inc.* | 27,032 | 223,825 | ||||||
Analog Devices, Inc. | 7,630 | 666,480 | ||||||
Applied Materials, Inc. | 35,316 | 1,754,146 | ||||||
Broadcom, Inc. | 10,900 | 2,500,678 | ||||||
Brooks Automation, Inc.(a) | 4,578 | 113,901 | ||||||
Cabot Microelectronics Corp. | 1,962 | 199,045 | ||||||
Cavium, Inc.* (a) | 4,796 | 359,748 | ||||||
CEVA, Inc.* | 218 | 7,107 | ||||||
Cirrus Logic, Inc.* (a) | 15,696 | 572,433 | ||||||
Cypress Semiconductor Corp.(a) | 35,970 | 524,442 | ||||||
Diodes, Inc.* | 872 | 24,896 | ||||||
Entegris, Inc. | 15,478 | 498,392 | ||||||
First Solar, Inc.* | 3,270 | 231,876 | ||||||
FormFactor, Inc.* | 13,952 | 160,099 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 75 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Inphi Corp.* (a) | 2,180 | $ | 62,304 | |||||
Integrated Device Technology, Inc.* (a) | 11,772 | 327,615 | ||||||
Intel Corp. | 212,114 | 10,949,325 | ||||||
KLA-Tencor Corp. | 1,962 | 199,614 | ||||||
Kulicke & Soffa Industries, Inc.* | 11,554 | 264,471 | ||||||
Lam Research Corp. | 6,322 | 1,169,949 | ||||||
Lattice Semiconductor Corp.* | 6,976 | 37,810 | ||||||
Marvell Technology Group Ltd.(a) | 15,260 | 306,116 | ||||||
Maxim Integrated Products, Inc. | 7,412 | 403,954 | ||||||
MaxLinear, Inc.* (a) | 8,938 | 199,585 | ||||||
Microchip Technology, Inc.(a) | 3,706 | 310,044 | ||||||
Micron Technology, Inc.* | 51,884 | 2,385,626 | ||||||
Microsemi Corp.* | 12,208 | 789,735 | ||||||
MKS Instruments, Inc. | 4,796 | 491,110 | ||||||
Monolithic Power Systems, Inc.(a) | 3,270 | 382,917 | ||||||
Nanometrics, Inc.* | 218 | 5,411 | ||||||
NVIDIA Corp. | 17,222 | 3,873,228 | ||||||
ON Semiconductor Corp.* | 11,336 | 250,299 | ||||||
PDF Solutions, Inc.* | 872 | 9,723 | ||||||
Photronics, Inc.* (a) | 8,938 | 68,376 | ||||||
Power Integrations, Inc.(a) | 1,526 | 103,463 | ||||||
Qorvo, Inc.* (a) | 8,938 | 602,421 | ||||||
QUALCOMM, Inc. | 70,632 | 3,602,938 | ||||||
Rambus, Inc.* (a) | 10,464 | 141,264 | ||||||
Rudolph Technologies, Inc.* | 1,526 | 38,684 | ||||||
Silicon Laboratories, Inc.* (a) | 2,398 | 222,774 | ||||||
Skyworks Solutions, Inc. | 4,796 | 416,101 | ||||||
SolarEdge Technologies, Inc.* (a) | 6,540 | 344,331 | ||||||
SunPower Corp.* (a) | 4,360 | 37,191 | ||||||
Synaptics, Inc.* (a) | 8,938 | 388,982 | ||||||
Teradyne, Inc.(a) | 6,758 | 219,973 | ||||||
Texas Instruments, Inc. | 28,558 | 2,896,638 | ||||||
Ultra Clean Holdings, Inc.* (a) | 7,412 | 129,784 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Xcerra Corp.* | 1,090 | $ | 13,167 | |||||
Xilinx, Inc. | 5,450 | 350,108 | ||||||
Xperi Corp. | 4,578 | 100,716 | ||||||
40,844,545 | ||||||||
Software – 4.3% | ||||||||
8x8, Inc.* (a) | 6,758 | 136,849 | ||||||
ACI Worldwide, Inc.* | 10,246 | 238,219 | ||||||
Activision Blizzard, Inc. | 20,274 | 1,345,180 | ||||||
Adobe Systems, Inc.* | 13,298 | 2,946,837 | ||||||
ANSYS, Inc.* | 2,616 | 422,902 | ||||||
Aspen Technology, Inc.* | 5,668 | 497,367 | ||||||
Autodesk, Inc.* | 5,668 | 713,601 | ||||||
Blackbaud, Inc.(a) | 3,706 | 388,982 | ||||||
Bottomline Technologies de, Inc.* (a) | 436 | 17,231 | ||||||
CA, Inc. | 20,928 | 728,294 | ||||||
Cadence Design Systems, Inc.* | 5,450 | 218,327 | ||||||
CDK Global, Inc. | 3,924 | 256,002 | ||||||
Citrix Systems, Inc.* | 4,360 | 448,688 | ||||||
Dell Technologies, Inc., Class V* | 8,066 | 578,897 | ||||||
Digimarc Corp.* (a) | 654 | 18,868 | ||||||
Ebix, Inc.(a) | 3,924 | 304,110 | ||||||
Electronic Arts, Inc.* | 8,066 | 951,627 | ||||||
Ellie Mae, Inc.* (a) | 2,616 | 253,412 | ||||||
Fair Isaac Corp.* | 1,962 | 339,779 | ||||||
FireEye, Inc.* | 5,450 | 98,372 | ||||||
Fortinet, Inc.* | 8,720 | 482,739 | ||||||
Glu Mobile, Inc.* (a) | 35,316 | 154,684 | ||||||
Guidewire Software, Inc.* (a) | 2,180 | 184,472 | ||||||
Imperva, Inc.* | 1,744 | 78,044 | ||||||
Intuit, Inc. | 7,630 | 1,409,948 | ||||||
Manhattan Associates, Inc.* (a) | 3,488 | 150,193 | ||||||
Microsoft Corp. | 230,208 | 21,529,052 | ||||||
MicroStrategy, Inc., Class A* | 872 | 111,145 | ||||||
Monotype Imaging Holdings, Inc. | 1,744 | 38,630 | ||||||
Nuance Communications, Inc.* (a) | 81,096 | 1,193,733 | ||||||
Oracle Corp. | 93,304 | 4,261,194 |
See Accompanying Notes to the Financial Statements.
76 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Pegasystems, Inc.(a) | 2,834 | $ | 173,016 | |||||
Progress Software Corp. | 3,270 | 120,761 | ||||||
Proofpoint, Inc.* (a) | 2,616 | 308,531 | ||||||
PTC, Inc.* | 7,848 | 646,283 | ||||||
Qualys, Inc.* | 1,308 | 100,651 | ||||||
RealPage, Inc.* | 218 | 11,663 | ||||||
Red Hat, Inc.* | 4,142 | 675,394 | ||||||
salesforce.com, Inc.* | 22,672 | 2,743,085 | ||||||
ServiceNow, Inc.* (a) | 2,834 | 470,841 | ||||||
Snap, Inc., Class A* (a) | 5,014 | 71,851 | ||||||
Splunk, Inc.* | 3,706 | 380,421 | ||||||
SS&C Technologies Holdings, Inc. | 7,412 | 368,006 | ||||||
Symantec Corp. | 15,260 | 424,075 | ||||||
Synchronoss Technologies, Inc.* | 654 | 7,325 | ||||||
Synopsys, Inc.* | 3,924 | 335,541 | ||||||
Tableau Software, Inc., Class A* (a) | 2,616 | 222,491 | ||||||
Take-Two Interactive Software, Inc.* | 5,886 | 586,893 | ||||||
TiVo Corp.(a) | 39,022 | 552,161 | ||||||
Tyler Technologies, Inc.* (a) | 1,744 | 381,796 | ||||||
Ultimate Software Group, Inc. (The)* (a) | 1,526 | 366,118 | ||||||
VASCO Data Security International, Inc.* | 2,834 | 43,927 | ||||||
Verint Systems, Inc.* | 17,876 | 752,580 | ||||||
VMware, Inc., Class A* | 1,308 | 174,304 | ||||||
Workday, Inc., Class A* (a) | 3,052 | 381,012 | ||||||
Zendesk, Inc.* | 2,616 | 127,530 | ||||||
50,923,634 | ||||||||
Specialty Retail – 2.9% | ||||||||
Aaron’s, Inc. | 20,492 | 855,951 | ||||||
Abercrombie & Fitch Co., Class A(a) | 22,018 | 564,101 | ||||||
Advance Auto Parts, Inc.(a) | 2,616 | 299,401 | ||||||
American Eagle Outfitters, Inc. | 75,428 | 1,559,851 | ||||||
Asbury Automotive Group, Inc.* (a) | 8,284 | 555,442 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
Ascena Retail Group, Inc.* (a) | 73,684 | $ | 163,578 | |||||
AutoNation, Inc.* (a) | 7,194 | 332,291 | ||||||
AutoZone, Inc.* | 872 | 544,581 | ||||||
Barnes & Noble, Inc.(a) | 9,592 | 53,236 | ||||||
Bed Bath & Beyond, Inc.(a) | 44,254 | 772,675 | ||||||
Best Buy Co., Inc.(a) | 11,118 | 850,861 | ||||||
Buckle, Inc. (The)(a) | 2,834 | 65,324 | ||||||
Burlington Stores, Inc.* | 4,578 | 621,921 | ||||||
Caleres, Inc. | 12,644 | 413,838 | ||||||
Camping World Holdings, Inc., Class A(a) | 4,578 | 131,068 | ||||||
CarMax, Inc.* (a) | 10,682 | 667,625 | ||||||
Cato Corp. (The), Class A | 3,488 | 56,540 | ||||||
Chico’s FAS, Inc.(a) | 35,534 | 352,853 | ||||||
Children’s Place, Inc. (The)(a) | 3,052 | 389,283 | ||||||
Citi Trends, Inc. | 2,180 | 66,773 | ||||||
Conn’s, Inc.* (a) | 7,194 | 183,447 | ||||||
Dick’s Sporting Goods, Inc.(a) | 22,672 | 750,216 | ||||||
DSW, Inc., Class A(a) | 654 | 14,584 | ||||||
Express, Inc.* | 21,364 | 167,494 | ||||||
Finish Line, Inc. (The), Class A(a) | 9,156 | 124,247 | ||||||
Five Below, Inc.* | 1,526 | 107,751 | ||||||
Foot Locker, Inc. | 38,150 | 1,643,502 | ||||||
Francesca’s Holdings Corp.* (a) | 10,246 | 50,718 | ||||||
GameStop Corp., Class A(a) | 30,302 | 413,622 | ||||||
Gap, Inc. (The)(a) | 8,938 | 261,347 | ||||||
Genesco, Inc.* (a) | 6,104 | 260,946 | ||||||
GNC Holdings, Inc., Class A* (a) | 27,686 | 98,285 | ||||||
Group 1 Automotive, Inc.(a) | 6,540 | 427,389 | ||||||
Haverty Furniture Cos., Inc. | 872 | 15,827 | ||||||
Hibbett Sports, Inc.* (a) | 5,886 | 160,099 | ||||||
Home Depot, Inc. (The) | 34,880 | 6,445,824 | ||||||
L Brands, Inc.(a) | 10,464 | 365,298 | ||||||
Lithia Motors, Inc., Class A(a) | 8,284 | 794,104 | ||||||
Lowe’s Cos., Inc. | 26,596 | 2,192,308 | ||||||
Lumber Liquidators Holdings, Inc.* (a) | 7,194 | 173,160 | ||||||
MarineMax, Inc.* (a) | 2,616 | 56,506 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 77 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Michaels Cos., Inc. (The)* (a) | 28,994 | $ | 539,868 | |||||
Monro, Inc.(a) | 1,962 | 109,774 | ||||||
Murphy USA, Inc.* (a) | 6,758 | 422,848 | ||||||
Office Depot, Inc. | 164,154 | 375,913 | ||||||
O’Reilly Automotive, Inc.* (a) | 2,398 | 614,056 | ||||||
Party City Holdco, Inc.* (a) | 14,170 | 223,178 | ||||||
Penske Automotive Group, Inc.(a) | 10,246 | 462,095 | ||||||
RH* (a) | 4,360 | 416,162 | ||||||
Ross Stores, Inc. | 10,682 | 863,640 | ||||||
Sally Beauty Holdings, Inc.* (a) | 36,624 | 633,229 | ||||||
Shoe Carnival, Inc. | 436 | 10,625 | ||||||
Signet Jewelers Ltd.(a) | 18,530 | 720,446 | ||||||
Sleep Number Corp.* (a) | 3,924 | 111,206 | ||||||
Sonic Automotive, Inc., Class A(a) | 16,132 | 319,414 | ||||||
Tailored Brands, Inc. | 13,298 | 419,552 | ||||||
Tiffany & Co. | 1,744 | 179,336 | ||||||
TJX Cos., Inc. (The) | 22,236 | 1,886,725 | ||||||
Tractor Supply Co. | 6,758 | 459,544 | ||||||
Ulta Beauty, Inc.* | 1,308 | 328,190 | ||||||
Urban Outfitters, Inc.* | 37,060 | 1,492,406 | ||||||
Williams-Sonoma, Inc.(a) | 3,924 | 187,567 | ||||||
Zumiez, Inc.* | 5,450 | 127,530 | ||||||
34,927,171 | ||||||||
Technology Hardware, Storage & Peripherals – 2.8% | ||||||||
3D Systems Corp.* (a) | 15,696 | 157,588 | ||||||
Apple, Inc. | 156,088 | 25,795,102 | ||||||
Cray, Inc.* (a) | 2,180 | 51,993 | ||||||
Diebold Nixdorf, Inc.(a) | 23,544 | 361,401 | ||||||
Electronics For Imaging, Inc.* (a) | 5,886 | 163,042 | ||||||
Hewlett Packard Enterprise Co. | 80,006 | 1,364,102 | ||||||
HP, Inc. | 68,888 | 1,480,403 | ||||||
NCR Corp.* (a) | 35,316 | 1,086,673 | ||||||
NetApp, Inc. | 12,644 | 841,838 | ||||||
Pure Storage, Inc., Class A* (a) | 17,658 | 357,221 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Seagate Technology plc | 10,900 | $ | 631,001 | |||||
Super Micro Computer, Inc.* (a) | 10,028 | 177,496 | ||||||
Western Digital Corp. | 12,208 | 961,868 | ||||||
Xerox Corp. | 11,554 | 363,373 | ||||||
33,793,101 | ||||||||
Textiles, Apparel & Luxury Goods – 1.0% | ||||||||
Carter’s, Inc.(a) | 3,706 | 371,786 | ||||||
Columbia Sportswear Co. | 2,616 | 217,154 | ||||||
Crocs, Inc.* (a) | 8,938 | 141,220 | ||||||
Deckers Outdoor Corp.* | 11,336 | 1,057,195 | ||||||
Fossil Group, Inc.* (a) | 7,848 | 117,328 | ||||||
G-III Apparel Group Ltd.* (a) | 8,938 | 326,148 | ||||||
Hanesbrands, Inc.(a) | 9,374 | 173,138 | ||||||
Lululemon Athletica, Inc.* (a) | 2,616 | 261,077 | ||||||
Michael Kors Holdings Ltd.* | 11,336 | 775,609 | ||||||
Movado Group, Inc. | 3,488 | 137,602 | ||||||
NIKE, Inc., Class B | 41,638 | 2,847,623 | ||||||
Oxford Industries, Inc.(a) | 3,924 | 302,305 | ||||||
Perry Ellis International, Inc.* | 1,526 | 39,600 | ||||||
PVH Corp. | 5,668 | 905,009 | ||||||
Skechers U.S.A., Inc., Class A* | 46,216 | 1,317,156 | ||||||
Steven Madden Ltd.(a) | 3,706 | 178,814 | ||||||
Tapestry, Inc. | 7,194 | 386,821 | ||||||
Under Armour, Inc., Class A* (a) | 6,758 | 120,022 | ||||||
Under Armour, Inc., Class C* (a) | 1,744 | 26,770 | ||||||
Unifi, Inc.* | 872 | 25,820 | ||||||
Vera Bradley, Inc.* (a) | 12,208 | 138,927 | ||||||
VF Corp.(a) | 14,170 | 1,145,928 | ||||||
Wolverine World Wide, Inc.(a) | 31,610 | 947,036 | ||||||
11,960,088 | ||||||||
Thrifts & Mortgage Finance – 0.5% | ||||||||
Beneficial Bancorp, Inc. | 4,796 | 76,017 | ||||||
BofI Holding, Inc.* | 17,658 | 711,264 | ||||||
Capitol Federal Financial, Inc. | 1,090 | 13,592 | ||||||
Dime Community Bancshares, Inc. | 15,042 | 297,080 |
See Accompanying Notes to the Financial Statements.
78 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Thrifts & Mortgage Finance – (continued) | ||||||||
Essent Group Ltd.* | 20,274 | $ | 668,231 | |||||
Federal Agricultural Mortgage Corp., Class C | 4,360 | 372,824 | ||||||
Flagstar Bancorp, Inc.* (a) | 8,066 | 278,680 | ||||||
HomeStreet, Inc.* | 5,668 | 144,534 | ||||||
LendingTree, Inc.* (a) | 436 | 103,942 | ||||||
MGIC Investment Corp.* | 39,894 | 399,738 | ||||||
Nationstar Mortgage Holdings, Inc.* (a) | 17,658 | 318,197 | ||||||
New York Community Bancorp, Inc. | 2,834 | 33,668 | ||||||
Northfield Bancorp, Inc. | 4,360 | 69,062 | ||||||
Northwest Bancshares, Inc.(a) | 13,734 | 227,984 | ||||||
Ocwen Financial Corp.* (a) | 28,340 | 115,061 | ||||||
Oritani Financial Corp. | 872 | 13,342 | ||||||
PHH Corp.* | 218 | 2,313 | ||||||
Provident Financial Services, Inc. | 11,990 | 313,179 | ||||||
Radian Group, Inc. | 68,888 | 985,098 | ||||||
TFS Financial Corp. | 2,398 | 35,754 | ||||||
TrustCo Bank Corp.(a) | 16,568 | 141,656 | ||||||
United Financial Bancorp, Inc. | 2,398 | 39,639 | ||||||
Walker & Dunlop, Inc.(a) | 9,592 | 547,799 | ||||||
Washington Federal, Inc.(a) | 12,208 | 387,604 | ||||||
WSFS Financial Corp.(a) | 4,578 | 229,358 | ||||||
6,525,616 | ||||||||
Tobacco – 0.6% | ||||||||
Altria Group, Inc. | 47,960 | 2,691,036 | ||||||
Philip Morris International, Inc. | 46,870 | 3,843,340 | ||||||
Universal Corp. | 6,758 | 317,964 | ||||||
Vector Group Ltd.(a) | 10,299 | 200,830 | ||||||
7,053,170 | ||||||||
Trading Companies & Distributors – 0.7% | ||||||||
Air Lease Corp.(a) | 30,084 | 1,254,202 | ||||||
Applied Industrial Technologies, Inc. | 4,796 | 306,704 | ||||||
Beacon Roofing Supply, Inc.* | 5,668 | 277,449 |
Investments | Shares | Value | ||||||
Trading Companies & Distributors – (continued) | ||||||||
BMC Stock Holdings, Inc.* | 218 | $ | 3,760 | |||||
CAI International, Inc.* | 3,488 | 78,410 | ||||||
DXP Enterprises, Inc.* | 3,488 | 126,614 | ||||||
Fastenal Co.(a) | 2,398 | 119,876 | ||||||
GATX Corp.(a) | 16,786 | 1,095,119 | ||||||
H&E Equipment Services, Inc.(a) | 4,578 | 148,098 | ||||||
HD Supply Holdings, Inc.* | 1,744 | 67,510 | ||||||
Herc Holdings, Inc.* | 1,526 | 80,344 | ||||||
Kaman Corp.(a) | 5,450 | 330,488 | ||||||
MRC Global, Inc.* (a) | 22,890 | 428,730 | ||||||
MSC Industrial Direct Co., Inc., Class A | 3,052 | 263,815 | ||||||
NOW, Inc.* (a) | 33,572 | 407,228 | ||||||
Rush Enterprises, Inc., Class A* | 10,900 | 445,047 | ||||||
Triton International Ltd. | 13,080 | 405,611 | ||||||
United Rentals, Inc.* (a) | 3,924 | 588,600 | ||||||
Univar, Inc.* | 15,478 | 426,574 | ||||||
Veritiv Corp.* | 3,270 | 124,424 | ||||||
Watsco, Inc.(a) | 1,962 | 328,478 | ||||||
WESCO International, Inc.* | 10,682 | 636,113 | ||||||
WW Grainger, Inc. | 1,308 | 368,006 | ||||||
8,311,200 | ||||||||
Transportation Infrastructure – 0.0%(c) | ||||||||
Macquarie Infrastructure Corp. | 436 | 16,524 | ||||||
Wesco Aircraft Holdings, Inc.* | 10,028 | 101,283 | ||||||
117,807 | ||||||||
Water Utilities – 0.1% | ||||||||
American States Water Co.(a) | 4,142 | 230,792 | ||||||
American Water Works Co., Inc. | 3,488 | 301,991 | ||||||
Aqua America, Inc.(a) | 1,962 | 68,964 | ||||||
California Water Service Group | 4,142 | 160,503 | ||||||
Connecticut Water Service, Inc. | 436 | 29,648 | ||||||
SJW Group | 654 | 39,534 | ||||||
831,432 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 79 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Wireless Telecommunication Services – 0.1% | ||||||||
Boingo Wireless, Inc.* | 4,142 | $ | 97,171 | |||||
Shenandoah Telecommunications Co. | 7,194 | 271,574 | ||||||
Spok Holdings, Inc. | 2,398 | 35,730 | ||||||
Sprint Corp.* (a) | 33,572 | 188,339 | ||||||
Telephone & Data Systems, Inc. | 8,938 | 244,276 | ||||||
T-Mobile US, Inc.* | 6,322 | 382,544 | ||||||
United States Cellular Corp.* | 872 | 34,505 | ||||||
1,254,139 | ||||||||
Total Common Stocks (Cost $804,235,893) | 1,188,540,061 | |||||||
Number of Rights | ||||||||
RIGHTS – 0.0%(c) | ||||||||
Biotechnology – 0.0%(c) | ||||||||
Dyax Corp., CVR* ‡ (d) | 7,175 | 13,561 | ||||||
Media – 0.0%(c) | ||||||||
Media General, Inc., CVR* ‡ (d) | 22,261 | 2,226 | ||||||
Total Rights (Cost $–) | 15,787 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(e) – 9.5% | ||||||||
BANK NOTES – 0.2% | ||||||||
Bank of America NA, Charlotte | $ | 2,000,000 | 2,000,000 | |||||
CERTIFICATES OF DEPOSIT – 4.1% | ||||||||
Bank of Nova Scotia, Houston | 3,000,000 | 3,000,000 |
Investments | Principal Amount | Value | ||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Barclays Bank plc, New York | $ | 4,000,000 | $ | 3,999,792 | ||||
Canadian Imperial Bank of Commerce, New York | 4,000,000 | 4,001,348 | ||||||
Citibank NA, New York (ICE LIBOR USD 1 Month + 0.33%), 2.22%, 9/12/2018(f) | 3,000,000 | 2,999,652 | ||||||
Cooperatieve Rabobank UA, London | 2,000,000 | 2,000,000 | ||||||
Credit Agricole CIB, New York | 3,000,000 | 2,999,652 | ||||||
MUFG Bank Ltd., New York Branch 2.39%, 7/27/2018 | 1,500,000 | 1,498,487 | ||||||
Natixis SA, New York 2.22%, 6/11/2018 | 3,000,000 | 3,000,000 | ||||||
Royal Bank of Canada | 3,000,000 | 3,000,438 | ||||||
Societe Generale, New York 2.11%, 5/31/2018 | 3,000,000 | 3,000,000 | ||||||
Standard Chartered, New York | 3,500,000 | 3,500,000 | ||||||
State Street Bank & Trust (ICE LIBOR USD 1 Month + 0.12%), 2.02%, 5/8/2018(f) | 2,000,000 | 2,000,000 |
See Accompanying Notes to the Financial Statements.
80 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Sumitomo Mitsui Trust Bank Ltd., London | $ | 2,000,000 | $ | 2,000,000 | ||||
Svenska Handelsbanken, New York | 2,000,000 | 2,000,564 | ||||||
The Chiba Bank Ltd., New York Branch 2.25%, 5/18/2018 | 2,000,000 | 2,000,000 | ||||||
The Sumitomo Bank Ltd., New York | 2,000,000 | 1,999,430 | ||||||
Toronto-Dominion Bank, New York 2.25%, 6/26/2018 | 2,000,000 | 2,000,000 | ||||||
Wells Fargo Bank (San Francisco) NA | 3,000,000 | 3,002,083 | ||||||
Westpac Banking Corp., New York (US Federal Funds Effective Rate (continuous series) + 0.45%), 2.15%, 2/15/2019(f) | 2,000,000 | 1,999,840 | ||||||
Total Certificates of Deposit (Cost $49,998,230) | 50,001,286 | |||||||
COMMERCIAL PAPER – 0.7% | ||||||||
ING (US) Funding LLC | 3,000,000 | 2,999,244 |
Investments | Principal Amount | Value | ||||||
COMMERCIAL PAPER – (continued) | ||||||||
Oversea-Chinese Banking Corp. Ltd. | $ | 2,000,000 | $ | 1,999,902 | ||||
Union Bank of Switzerland (ICE LIBOR USD 1 Month + 0.21%), 2.09%, 5/2/2018(f) (g) | 4,000,000 | 4,000,000 | ||||||
Total Commercial Paper (Cost $8,999,902) | 8,999,146 | |||||||
FUNDING AGREEMENTS – 0.3% | ||||||||
United of Omaha Life Insurance | 3,000,000 | 3,000,000 | ||||||
REPURCHASE AGREEMENTS – 4.2% | ||||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $14,612,036, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $14,812,708 | 14,611,342 | 14,611,342 | ||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $3,000,162, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $3,273,774 | 3,000,000 | 3,000,000 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 81 |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $5,000,269, collateralized by various Common Stocks; total market value $5,592,440 | $ | 5,000,000 | $ | 5,000,000 | ||||
Mizuho Securities USA, Inc., 1.72%, dated 4/30/2018, due 5/1/2018, repurchase price $12,520,598, collateralized by various U.S. Treasury Securities, ranging from 1.00% – 2.75%, maturing 6/30/2019 – 2/15/2028; total market value $12,723,769 | 12,520,000 | 12,520,000 | ||||||
ML Pierce Fenner & Smith, Inc., 2.24%, dated 4/30/2018, due 7/31/2018, repurchase price $6,034,347, collateralized by various Common Stocks; total market value $6,548,263 | 6,000,000 | 6,000,000 | ||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $8,900,460, collateralized by various Common Stocks; total market value $9,830,989 | 8,900,000 | 8,900,000 | ||||||
Total Repurchase Agreements (Cost $50,031,342) | 50,031,342 | |||||||
Total Securities Lending Reinvestments (Cost $114,029,474) | 114,031,774 |
Investments | Value | |||||
Total Investments – 108.6% (Cost $918,265,367) | $ | 1,302,587,622 | ||||
Liabilities in excess of other assets – (8.6%) | (103,440,109 | ) | ||||
NET ASSETS – 100.0% | $ | 1,199,147,513 |
* | Non-income producing security. |
‡ | Value determined using significant unobservable inputs. |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $174,879,713, collateralized in the form of cash with a value of $114,036,329 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $24,955,162 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 3, 2018 – February 15, 2048 and $44,264,028 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from May 8, 2018 – July 22, 2068; a total value of $183,255,519. |
(b) | Investment in affiliated company. Northern Trust Investments, Inc., the Investment Adviser of the Fund, is a subsidiary of Northern Trust Corporation. |
(c) | Represents less than 0.05% of net assets. |
(d) | Security fair valued as of April 30, 2018 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2018 amounted to $15,787, which represents approximately 0.00% of net assets of the Fund. |
(e) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $114,031,774. |
(f) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2018. |
(g) | Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration normally to qualified institutional buyers. |
Percentages shown are based on Net Assets.
Abbreviations
CVR – Contingent Value Rights
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
USD – US Dollar
See Accompanying Notes to the Financial Statements.
82 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar US Market Factor Tilt Index Fund (cont.)
As of April 30, 2018, 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 | $ | 399,818,208 | ||
Aggregate gross unrealized depreciation | (15,421,753 | ) | ||
Net unrealized appreciation | $ | 384,396,455 | ||
Federal income tax cost | $ | 917,992,482 |
Investment in a company which was affiliated for the period ending April 30, 2018, was as follows:
Security | Value October 31, 2017 | Purchases at Cost | Sales Proceeds | Shares April 30, 2018 | Value April 30, 2018 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain | ||||||||||||||||||||||||
Northern Trust Corp. | $ | 686,811 | $ | 16,659 | $ | 6,785 | 7,446 | $ | 794,861 | $ | 95,880 | $ | 6,240 | $ | 2,296 |
Futures Contracts
FlexShares® Morningstar US Market Factor Tilt Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Depreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
Russell 2000 E-Mini Index | 25 | 06/15/2018 | USD | $ | 1,929,750 | $ | (30,214 | ) | ||||||||||||
S&P 500 E-Mini Index | 49 | 06/15/2018 | USD | 6,485,150 | (123,512 | ) | ||||||||||||||
S&P Midcap 400 E-Mini Index | 11 | 06/15/2018 | USD | 2,059,310 | (44,959 | ) | ||||||||||||||
$ | (198,685 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 83 |
Table of Contents
Schedule of Investments
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.1% | ||||||||
Aerospace & Defense – 0.7% | ||||||||
Airbus SE | 18,711 | $ | 2,201,886 | |||||
BAE Systems plc | 79,461 | 668,713 | ||||||
Bombardier, Inc., Class B* | 48,735 | 150,925 | ||||||
CAE, Inc. | 7,384 | 139,794 | ||||||
Cobham plc* (a) | 107,987 | 171,195 | ||||||
Dassault Aviation SA | 55 | 109,976 | ||||||
Elbit Systems Ltd. | 412 | 47,694 | ||||||
Jamco Corp. | 500 | 11,510 | ||||||
KuangChi Science Ltd.* | 76,000 | 17,334 | ||||||
Leonardo SpA | 10,037 | 116,538 | ||||||
LISI | 3,196 | 118,159 | ||||||
Magellan Aerospace Corp. | 12,236 | 184,788 | ||||||
Maxar Technologies Ltd. | 2,058 | 93,272 | ||||||
Meggitt plc | 50,706 | 329,924 | ||||||
MTU Aero Engines AG | 1,458 | 251,902 | ||||||
QinetiQ Group plc | 9,435 | 29,954 | ||||||
Rolls-Royce Holdings plc* | 54,027 | 625,078 | ||||||
Rolls-Royce plc (Preference)* (b) | 3,835,917 | 5,283 | ||||||
Saab AB, Class B | 1,995 | 82,032 | ||||||
Safran SA | 10,368 | 1,220,844 | ||||||
Senior plc | 81,243 | 330,553 | ||||||
Singapore Technologies Engineering Ltd. | 17,900 | 47,182 | ||||||
Thales SA | 3,726 | 472,684 | ||||||
Ultra Electronics Holdings plc(a) | 2,293 | 44,468 | ||||||
7,471,688 | ||||||||
Air Freight & Logistics – 0.5% | ||||||||
Bollore SA | 18,995 | 94,507 | ||||||
Bollore SA* | 77 | 380 | ||||||
bpost SA | 2,356 | 51,721 | ||||||
Cia de Distribucion Integral Logista Holdings SA | 4,508 | 101,796 | ||||||
CTT-Correios de Portugal SA(a) | 98,457 | 363,767 | ||||||
Deutsche Post AG (Registered) | 29,403 | 1,282,442 | ||||||
Freightways Ltd. | 12,987 | 68,538 | ||||||
Kintetsu World Express, Inc. | 14,000 | 261,129 | ||||||
Konoike Transport Co. Ltd. | 30,400 | 532,573 |
Investments | Shares | Value | ||||||
Air Freight & Logistics – (continued) | ||||||||
Mainfreight Ltd. | 3,192 | $ | 55,665 | |||||
Oesterreichische Post AG | 1,673 | 80,570 | ||||||
Panalpina Welttransport Holding AG (Registered)(a) | 275 | 34,948 | ||||||
PostNL NV(a) | 340,550 | 1,325,288 | ||||||
Royal Mail plc | 60,264 | 482,423 | ||||||
Singapore Post Ltd. | 83,600 | 84,607 | ||||||
Yamato Holdings Co. Ltd. | 12,600 | 324,428 | ||||||
5,144,782 | ||||||||
Airlines – 0.6% | ||||||||
Air Canada* | 15,147 | 298,226 | ||||||
Air France-KLM* | 24,381 | 239,722 | ||||||
Air New Zealand Ltd. | 25,676 | 59,159 | ||||||
ANA Holdings, Inc. | 4,500 | 178,478 | ||||||
Chorus Aviation, Inc.(a) | 117,288 | 704,487 | ||||||
Dart Group plc | 78,732 | 929,886 | ||||||
Deutsche Lufthansa AG (Registered) | 13,770 | 402,114 | ||||||
easyJet plc | 12,960 | 283,822 | ||||||
Exchange Income Corp.(a) | 25,110 | 594,084 | ||||||
Finnair OYJ | 50,544 | 691,892 | ||||||
International Consolidated Airlines Group SA, DI | 43,416 | 376,853 | ||||||
Japan Airlines Co. Ltd. | 8,600 | 338,734 | ||||||
Norwegian Air Shuttle ASA* (a) | 17,091 | 646,425 | ||||||
Qantas Airways Ltd. | 42,499 | 185,104 | ||||||
SAS AB* (a) | 214,569 | 538,447 | ||||||
Singapore Airlines Ltd. | 12,000 | 98,607 | ||||||
WestJet Airlines Ltd. | 10,611 | 189,135 | ||||||
Wizz Air Holdings plc* (c) | 2,172 | 95,552 | ||||||
6,850,727 | ||||||||
Auto Components – 2.7% | ||||||||
Aisan Industry Co. Ltd. | 21,208 | 219,009 | ||||||
Aisin Seiki Co. Ltd. | 9,400 | 510,267 | ||||||
ARB Corp. Ltd. | 997 | 15,639 | ||||||
Autoneum Holding AG(a) | 2,511 | 661,043 | ||||||
Brembo SpA | 3,575 | 52,912 | ||||||
Bridgestone Corp. | 34,800 | 1,459,421 | ||||||
Burelle SA | 77 | 123,267 |
See Accompanying Notes to the Financial Statements.
84 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
CIE Automotive SA | 3,217 | $ | 120,646 | |||||
Cie Generale des Etablissements Michelin SCA | 9,477 | 1,334,510 | ||||||
Cie Plastic Omnium SA(a) | 5,832 | 280,721 | ||||||
Continental AG | 4,097 | 1,094,939 | ||||||
Daikyonishikawa Corp. | 42,104 | 758,391 | ||||||
Denso Corp. | 20,600 | 1,083,606 | ||||||
Dometic Group AB(d) | 8,032 | 77,307 | ||||||
Eagle Industry Co. Ltd. | 20,700 | 374,369 | ||||||
ElringKlinger AG | 26,730 | 486,365 | ||||||
Exedy Corp. | 2,800 | 94,933 | ||||||
Faurecia SA | 4,293 | 351,665 | ||||||
FCC Co. Ltd. | 37,600 | 1,065,204 | ||||||
Futaba Industrial Co. Ltd. | 48,600 | 389,511 | ||||||
Gestamp Automocion SA* (c) | 12,716 | 103,703 | ||||||
GKN plc | 102,141 | 653,617 | ||||||
G-Tekt Corp. | 18,000 | 348,074 | ||||||
GUD Holdings Ltd.(a) | 4,785 | 45,763 | ||||||
Hella GmbH & Co. KGaA | 1,320 | 81,735 | ||||||
HI-LEX Corp. | 3,164 | 82,263 | ||||||
Ichikoh Industries Ltd.(a) | 49,800 | 543,852 | ||||||
Kasai Kogyo Co. Ltd. | 32,400 | 456,280 | ||||||
Keihin Corp. | 44,700 | 882,358 | ||||||
Koito Manufacturing Co. Ltd. | 3,200 | 214,942 | ||||||
KYB Corp. | 3,300 | 159,534 | ||||||
Leoni AG | 29,160 | 1,834,132 | ||||||
Linamar Corp. | 3,404 | 191,051 | ||||||
Magna International, Inc. | 18,225 | 1,078,046 | ||||||
Martinrea International, Inc. | 72,819 | 870,227 | ||||||
MGI Coutier | 2,840 | 98,135 | ||||||
Mitsuba Corp. | 37,600 | 550,470 | ||||||
Musashi Seimitsu Industry Co. Ltd. | 18,700 | 656,230 | ||||||
NGK Spark Plug Co. Ltd. | 7,400 | 190,706 | ||||||
NHK Spring Co. Ltd. | 8,900 | 98,252 | ||||||
Nifco, Inc.(a) | 2,400 | 84,551 | ||||||
Nippon Seiki Co. Ltd. | 7,800 | 150,191 | ||||||
Nissin Kogyo Co. Ltd. | 13,700 | 240,759 | ||||||
NOK Corp. | 4,600 | 94,585 | ||||||
Nokian Renkaat OYJ(a) | 4,369 | 175,514 | ||||||
Pacific Industrial Co. Ltd. | 50,900 | 723,787 |
Investments | Shares | Value | ||||||
Auto Components – (continued) | ||||||||
Piolax, Inc. | 24,300 | $ | 681,755 | |||||
Press Kogyo Co. Ltd. | 105,300 | 608,175 | ||||||
SAF-Holland SA | 37,179 | 693,560 | ||||||
Sanden Holdings Corp.* | 24,300 | 354,424 | ||||||
Schaeffler AG (Preference) | 7,416 | 115,271 | ||||||
Showa Corp.(a) | 41,400 | 619,723 | ||||||
Stanley Electric Co. Ltd. | 3,800 | 137,692 | ||||||
Sumitomo Electric Industries Ltd. | 32,400 | 497,289 | ||||||
Sumitomo Riko Co. Ltd. | 28,800 | 301,357 | ||||||
Sumitomo Rubber Industries Ltd. | 9,500 | 169,902 | ||||||
Tachi-S Co. Ltd.(a) | 36,300 | 658,492 | ||||||
Tokai Rika Co. Ltd. | 2,600 | 52,036 | ||||||
Topre Corp. | 6,000 | 188,622 | ||||||
Toyo Tire & Rubber Co. Ltd. | 4,500 | 76,902 | ||||||
Toyoda Gosei Co. Ltd. | 7,800 | 197,735 | ||||||
Toyota Boshoku Corp. | 2,600 | 54,816 | ||||||
Toyota Industries Corp. | 9,500 | 561,709 | ||||||
TPR Co. Ltd. | 25,200 | 765,730 | ||||||
TS Tech Co. Ltd. | 9,200 | 374,558 | ||||||
Unipres Corp. | 34,000 | 803,820 | ||||||
Valeo SA | 7,128 | 477,452 | ||||||
Xinyi Glass Holdings Ltd.* | 120,000 | 174,918 | ||||||
Yokohama Rubber Co. Ltd. (The) | 8,000 | 188,988 | ||||||
29,917,408 | ||||||||
Automobiles – 2.8% | ||||||||
Bayerische Motoren Werke AG | 15,714 | 1,755,603 | ||||||
Bayerische Motoren Werke AG (Preference) | 2,835 | 274,705 | ||||||
Daimler AG (Registered) | 55,647 | 4,403,742 | ||||||
Ferrari NV(a) | 3,726 | 459,404 | ||||||
Fiat Chrysler Automobiles NV* | 54,837 | 1,230,338 | ||||||
Honda Motor Co. Ltd. | 91,400 | 3,146,482 | ||||||
Isuzu Motors Ltd. | 27,700 | 423,759 | ||||||
Mazda Motor Corp. | 16,600 | 230,815 | ||||||
Mitsubishi Motors Corp.(a) | 9,100 | 67,860 | ||||||
Nissan Motor Co. Ltd. | 145,800 | 1,534,281 | ||||||
Nissan Shatai Co. Ltd. | 1,000 | 10,711 | ||||||
Peugeot SA | 22,194 | 547,558 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 85 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Automobiles – (continued) | ||||||||
Porsche Automobil Holding SE (Preference) | 8,019 | $ | 685,950 | |||||
Renault SA | 11,502 | 1,248,481 | ||||||
Subaru Corp. | 30,400 | 1,022,085 | ||||||
Suzuki Motor Corp. | 16,900 | 909,828 | ||||||
Toyota Motor Corp. | 153,900 | 10,099,665 | ||||||
Volkswagen AG | 2,574 | 526,818 | ||||||
Volkswagen AG (Preference) | 9,315 | 1,933,953 | ||||||
Yamaha Motor Co. Ltd. | 18,500 | 591,729 | ||||||
31,103,767 | ||||||||
Banks – 12.1% | ||||||||
77 Bank Ltd. (The) | 2,200 | 54,465 | ||||||
ABN AMRO Group NV, CVA(c) | 20,898 | 649,656 | ||||||
Aichi Bank Ltd. (The) | 400 | 19,118 | ||||||
Aktia Bank OYJ | 29,970 | 298,730 | ||||||
Aozora Bank Ltd. | 4,300 | 173,886 | ||||||
Australia & New Zealand Banking Group Ltd. | 162,729 | 3,296,918 | ||||||
Awa Bank Ltd. (The) | 6,000 | 39,260 | ||||||
Banca Popolare di Sondrio SCPA | 39,995 | 189,422 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 373,167 | 3,034,290 | ||||||
Banco BPM SpA* (a) | 51,579 | 187,982 | ||||||
Banco Comercial Portugues SA, Class R* (a) | 865,080 | 290,667 | ||||||
Banco de Sabadell SA | 309,906 | 609,008 | ||||||
Banco Espirito Santo SA (Registered)* ‡ (b) | 48,647 | — | ||||||
Banco Santander SA | 878,850 | 5,705,194 | ||||||
Bank Hapoalim BM | 55,485 | 380,294 | ||||||
Bank Leumi Le-Israel BM | 75,330 | 445,963 | ||||||
Bank of Cyprus Holdings plc* | 35,704 | 81,961 | ||||||
Bank of East Asia Ltd. (The) | 35,433 | 156,211 | ||||||
Bank of Ireland Group plc | 54,270 | 488,489 | ||||||
Bank of Iwate Ltd. (The) | 13,800 | 541,028 | ||||||
Bank of Kyoto Ltd. (The) | 2,600 | 156,345 | ||||||
Bank of Montreal(a) | 34,992 | 2,661,625 | ||||||
Bank of Nova Scotia (The) | 64,557 | 3,974,288 | ||||||
Bank of Okinawa Ltd. (The) | 4,240 | 178,241 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Bank of Queensland Ltd. | 16,107 | $ | 122,313 | |||||
Bank of the Ryukyus Ltd. | 40,561 | 621,991 | ||||||
Bankia SA | 33,606 | 148,078 | ||||||
Bankinter SA | 23,782 | 249,406 | ||||||
Banque Cantonale de Geneve* | 2,025 | 380,493 | ||||||
Banque Cantonale Vaudoise (Registered)* | 186 | 148,815 | ||||||
Barclays plc | 889,299 | 2,538,555 | ||||||
Bendigo & Adelaide Bank Ltd. | 28,755 | 230,515 | ||||||
Berner Kantonalbank AG (Registered) | 3,807 | 713,788 | ||||||
BGEO Group plc | 33,615 | 1,611,227 | ||||||
BNP Paribas SA | 62,370 | 4,821,241 | ||||||
BPER Banca(a) | 408,969 | 2,367,806 | ||||||
CaixaBank SA | 191,484 | 934,427 | ||||||
Canadian Imperial Bank of Commerce | 25,110 | 2,190,453 | ||||||
Canadian Western Bank | 2,989 | 79,438 | ||||||
Chiba Bank Ltd. (The)(a) | 34,000 | 274,672 | ||||||
Chugoku Bank Ltd. (The) | 6,500 | 75,499 | ||||||
comdirect bank AG | 7,483 | 114,820 | ||||||
Commerzbank AG* | 40,014 | 517,774 | ||||||
Commonwealth Bank of Australia | 56,376 | 3,056,330 | ||||||
Concordia Financial Group Ltd. | 68,021 | 395,973 | ||||||
Credit Agricole SA | 65,772 | 1,083,515 | ||||||
Credito Emiliano SpA | 23,966 | 210,798 | ||||||
CYBG plc | 56,139 | 233,670 | ||||||
Dah Sing Banking Group Ltd. | 24,640 | 58,710 | ||||||
Dah Sing Financial Holdings Ltd. | 5,340 | 35,857 | ||||||
Daishi Bank Ltd. (The) | 800 | 35,897 | ||||||
Danske Bank A/S | 40,014 | 1,397,682 | ||||||
DBS Group Holdings Ltd. | 94,629 | 2,204,115 | ||||||
DNB ASA(a) | 48,438 | 910,280 | ||||||
Erste Group Bank AG* | 17,010 | 834,390 | ||||||
FIBI Holdings Ltd. | 7,341 | 184,142 | ||||||
FinecoBank Banca Fineco SpA | 4,895 | 58,574 | ||||||
Fukuoka Financial Group, Inc. | 30,000 | 160,658 | ||||||
Gunma Bank Ltd. (The) | 31,100 | 181,896 | ||||||
Hachijuni Bank Ltd. (The) | 16,600 | 87,836 | ||||||
Hang Seng Bank Ltd. | 24,300 | 618,008 |
See Accompanying Notes to the Financial Statements.
86 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Heartland Bank Ltd.(a) | 462,520 | $ | 583,346 | |||||
Hiroshima Bank Ltd. (The) | 20,600 | 157,006 | ||||||
Hokkoku Bank Ltd. (The) | 1,700 | 67,891 | ||||||
Hokuetsu Bank Ltd. (The) | 2,800 | 62,154 | ||||||
Hokuhoku Financial Group, Inc. | 7,600 | 112,654 | ||||||
HSBC Holdings plc | 1,089,450 | 10,885,021 | ||||||
Hyakugo Bank Ltd. (The) | 213,000 | 994,681 | ||||||
ING Groep NV | 207,198 | 3,498,705 | ||||||
Intesa Sanpaolo SpA | 524,313 | 1,999,880 | ||||||
Intesa Sanpaolo SpA (Retirement Savings Plan) | 14,727 | 58,468 | ||||||
Israel Discount Bank Ltd., Class A* | 72,098 | 200,189 | ||||||
Iyo Bank Ltd. (The) | 4,700 | 37,239 | ||||||
Juroku Bank Ltd. (The) | 10,000 | 264,199 | ||||||
Jyske Bank A/S (Registered) | 4,455 | 267,951 | ||||||
Kansai Mirai Financial Group, Inc.* | 6,873 | 54,394 | ||||||
KBC Group NV | 11,745 | 1,027,378 | ||||||
Keiyo Bank Ltd. (The) | 86,000 | 393,749 | ||||||
Kiyo Bank Ltd. (The) | 50,900 | 829,378 | ||||||
Laurentian Bank of Canada | 34,992 | 1,345,962 | ||||||
Liberbank SA* | 1,121,850 | 644,095 | ||||||
Liechtensteinische Landesbank AG | 9,639 | 616,374 | ||||||
Lloyds Banking Group plc | 3,894,237 | 3,468,186 | ||||||
Luzerner Kantonalbank AG (Registered) | 259 | 139,979 | ||||||
Mebuki Financial Group, Inc. | 72,910 | 283,178 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 32,400 | 394,001 | ||||||
Metro Bank plc* (a) | 1,844 | 83,865 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 748,600 | 5,015,979 | ||||||
Miyazaki Bank Ltd. (The) | 8,100 | 262,413 | ||||||
Mizrahi Tefahot Bank Ltd. | 4,176 | 76,500 | ||||||
Mizuho Financial Group, Inc. | 1,441,800 | 2,614,148 | ||||||
Musashino Bank Ltd. (The) | 35,600 | 1,185,853 | ||||||
Nanto Bank Ltd. (The) | 2,346 | 65,176 | ||||||
National Australia Bank Ltd. | 87,885 | 1,920,543 | ||||||
National Bank of Canada | 16,038 | 762,898 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Nishi-Nippon Financial Holdings, Inc. | 7,600 | $ | 91,332 | |||||
Nordea Bank AB | 176,499 | 1,804,356 | ||||||
North Pacific Bank Ltd. | 30,500 | 103,130 | ||||||
Norwegian Finans Holding ASA* | 2,660 | 32,473 | ||||||
Ogaki Kyoritsu Bank Ltd. (The) | 43,300 | 1,093,728 | ||||||
Oita Bank Ltd. (The) | 600 | 22,015 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 239,503 | 2,496,236 | ||||||
Permanent TSB Group Holdings plc* | 72,276 | 152,817 | ||||||
Raiffeisen Bank International AG* | 4,733 | 160,116 | ||||||
Resona Holdings, Inc. | 121,500 | 691,304 | ||||||
Ringkjoebing Landbobank A/S | 1,100 | 66,446 | ||||||
Royal Bank of Canada | 45,522 | 3,467,193 | ||||||
Royal Bank of Scotland Group plc* | 178,767 | 665,299 | ||||||
San-In Godo Bank Ltd. (The) | 24,800 | 233,665 | ||||||
Sbanken ASA(c) | 13,668 | 123,695 | ||||||
Senshu Ikeda Holdings, Inc. | 197,500 | 779,712 | ||||||
Shiga Bank Ltd. (The) | 5,000 | 25,314 | ||||||
Shikoku Bank Ltd. (The) | 1,400 | 20,458 | ||||||
Shinsei Bank Ltd. | 8,600 | 134,236 | ||||||
Shizuoka Bank Ltd. (The) | 11,000 | 111,784 | ||||||
Skandinaviska Enskilda Banken AB, Class A(a) | 74,804 | 705,860 | ||||||
Skandinaviska Enskilda Banken AB, Class C | 7,040 | 71,181 | ||||||
Societe Generale SA | 41,958 | 2,304,280 | ||||||
Spar Nord Bank A/S | 58,158 | 666,775 | ||||||
SpareBank 1 Nord Norge | 83,916 | 621,166 | ||||||
Sparebank 1 Oestlandet | 16,416 | 176,228 | ||||||
SpareBank 1 SMN | 26,244 | 264,042 | ||||||
SpareBank 1 SR-Bank ASA | 7,150 | 70,955 | ||||||
St Galler Kantonalbank AG (Registered) | 110 | 59,117 | ||||||
Standard Chartered plc | 88,209 | 931,864 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 74,900 | 3,114,416 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 14,500 | 615,645 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 87 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Suruga Bank Ltd. | 4,700 | $ | 63,912 | |||||
Svenska Handelsbanken AB, Class A | 32,686 | 366,376 | ||||||
Svenska Handelsbanken AB, Class B | 5,372 | 64,270 | ||||||
Swedbank AB, Class A | 37,017 | 808,463 | ||||||
Sydbank A/S | 5,670 | 210,373 | ||||||
TBC Bank Group plc | 29,646 | 750,509 | ||||||
Toho Bank Ltd. (The) | 22,732 | 88,290 | ||||||
Tokyo Kiraboshi Financial Group, Inc. | 32,400 | 856,598 | ||||||
TOMONY Holdings, Inc. | 147,900 | 660,938 | ||||||
Toronto-Dominion Bank (The) | 57,753 | 3,248,620 | ||||||
Unicaja Banco SA* (a) (c) | 683,073 | 1,238,759 | ||||||
UniCredit SpA | 114,769 | 2,492,345 | ||||||
Unione di Banche Italiane SpA | 73,710 | 380,716 | ||||||
United Overseas Bank Ltd. | 83,226 | 1,894,514 | ||||||
Valiant Holding AG (Registered)(a) | 11,988 | 1,443,549 | ||||||
Van Lanschot Kempen NV, CVA | 31,266 | 967,055 | ||||||
Virgin Money Holdings UK plc | 259,605 | 996,539 | ||||||
Walliser Kantonalbank (Registered)* | 4,374 | 519,189 | ||||||
Westpac Banking Corp. | 109,998 | 2,378,036 | ||||||
Yamagata Bank Ltd. (The) | 2,200 | 48,614 | ||||||
Yamaguchi Financial Group, Inc.(a) | 18,000 | 225,031 | ||||||
135,455,650 | ||||||||
Beverages – 1.1% | ||||||||
AG Barr plc | 4,785 | 45,937 | ||||||
Anheuser-Busch InBev SA/NV(a) | 30,168 | 3,015,059 | ||||||
Asahi Group Holdings Ltd. | 17,000 | 860,059 | ||||||
Britvic plc | 16,720 | 165,466 | ||||||
C&C Group plc | 26,658 | 100,490 | ||||||
Carlsberg A/S, Class B | 3,321 | 372,348 | ||||||
Coca-Cola Amatil Ltd. | 38,151 | 267,536 | ||||||
Coca-Cola Bottlers Japan Holdings, Inc. | 3,354 | 144,367 | ||||||
Coca-Cola European Partners plc | 8,100 | 317,520 |
Investments | Shares | Value | ||||||
Beverages – (continued) | ||||||||
Coca-Cola HBC AG, DI* | 4,146 | $ | 139,564 | |||||
Cott Corp. | 4,036 | 57,803 | ||||||
Davide Campari-Milano SpA | 13,794 | 103,662 | ||||||
Diageo plc | 78,570 | 2,801,774 | ||||||
Fevertree Drinks plc | 3,795 | 148,239 | ||||||
Heineken Holding NV | 2,997 | 304,886 | ||||||
Heineken NV(a) | 6,399 | 674,940 | ||||||
Ito En Ltd.(a) | 800 | 31,949 | ||||||
Kerur Holdings Ltd. | 3,648 | 100,906 | ||||||
Kirin Holdings Co. Ltd. | 29,038 | 815,479 | ||||||
Molson Coors Canada, Inc., Class B | 2,498 | 196,808 | ||||||
Pernod Ricard SA | 6,723 | 1,117,281 | ||||||
Remy Cointreau SA | 571 | 78,716 | ||||||
Royal Unibrew A/S | 1,210 | 80,449 | ||||||
Sapporo Holdings Ltd. | 1,800 | 51,487 | ||||||
Suntory Beverage & Food Ltd. | 3,000 | 147,772 | ||||||
Takara Holdings, Inc. | 8,600 | 103,900 | ||||||
Treasury Wine Estates Ltd. | 23,247 | 334,640 | ||||||
12,579,037 | ||||||||
Biotechnology – 0.6% | ||||||||
Abcam plc | 10,049 | 168,999 | ||||||
Ablynx NV* | 3,876 | 209,704 | ||||||
Basilea Pharmaceutica AG (Registered)* | 410 | 28,744 | ||||||
BioGaia AB, Class B | 1,134 | 54,605 | ||||||
Cellectis SA* (a) | 2,012 | 58,682 | ||||||
CK Life Sciences Int’l Holdings, Inc. | 526,000 | 38,202 | ||||||
CSL Ltd. | 13,851 | 1,781,187 | ||||||
DBV Technologies SA* (a) | 1,701 | 76,082 | ||||||
Galapagos NV* | 1,680 | 151,868 | ||||||
Genmab A/S* | 2,106 | 427,576 | ||||||
Genus plc | 6,007 | 209,326 | ||||||
GNI Group Ltd.* (a) | 4,000 | 19,191 | ||||||
Grifols SA | 10,206 | 287,926 | ||||||
Grifols SA (Preference), Class B | 5,834 | 121,096 | ||||||
Hansa Medical AB* | 912 | 27,371 | ||||||
HEALIOS KK* | 1,100 | 16,828 | ||||||
Knight Therapeutics, Inc.* | 16,463 | 100,939 | ||||||
Nordic Nanovector ASA* (a) | 3,824 | 23,695 |
See Accompanying Notes to the Financial Statements.
88 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
PeptiDream, Inc.* (a) | 2,500 | $ | 101,439 | |||||
ProMetic Life Sciences, Inc.* (a) | 54,220 | 33,413 | ||||||
SanBio Co. Ltd.* | 2,200 | 61,120 | ||||||
Shire plc | 51,840 | 2,760,394 | ||||||
Sirtex Medical Ltd. | 4,314 | 90,594 | ||||||
Swedish Orphan Biovitrum AB* | 6,345 | 137,053 | ||||||
Vitrolife AB | 889 | 65,381 | ||||||
7,051,415 | ||||||||
Building Products – 1.0% | ||||||||
Aica Kogyo Co. Ltd. | 1,500 | 56,477 | ||||||
Arbonia AG* | 3,800 | 67,946 | ||||||
Asahi Glass Co. Ltd. | 13,300 | 551,812 | ||||||
Assa Abloy AB, Class B | 35,073 | 738,928 | ||||||
Belimo Holding AG (Registered) | 21 | 87,085 | ||||||
Bunka Shutter Co. Ltd. | 58,500 | 581,659 | ||||||
Central Glass Co. Ltd.(a) | 32,600 | 774,297 | ||||||
Cie de Saint-Gobain | 17,415 | 915,170 | ||||||
Daikin Industries Ltd. | 8,900 | 1,041,485 | ||||||
Geberit AG (Registered) | 972 | 416,922 | ||||||
GWA Group Ltd.(a) | 241,623 | 702,198 | ||||||
Inwido AB | 55,404 | 484,143 | ||||||
James Halstead plc | 4,455 | 23,685 | ||||||
Kingspan Group plc | 4,835 | 219,062 | ||||||
Lindab International AB | 65,610 | 508,040 | ||||||
LIXIL Group Corp. | 13,300 | 298,149 | ||||||
Munters Group AB* (c) | 1,748 | 10,157 | ||||||
Nibe Industrier AB, Class B | 9,994 | 102,420 | ||||||
Nichias Corp. | 13,000 | 164,898 | ||||||
Nichiha Corp. | 8,100 | 322,001 | ||||||
Nippon Sheet Glass Co. Ltd.* (a) | 83,700 | 685,357 | ||||||
Nitto Boseki Co. Ltd. | 1,800 | 38,953 | ||||||
Noritz Corp. | 28,700 | 523,249 | ||||||
Okabe Co. Ltd. | 37,300 | 354,508 | ||||||
Polypipe Group plc | 9,196 | 48,537 | ||||||
Reliance Worldwide Corp. Ltd. | 35,079 | 125,247 | ||||||
Rockwool International A/S, Class A | 220 | 59,846 |
Investments | Shares | Value | ||||||
Building Products – (continued) | ||||||||
Rockwool International A/S, Class B | 82 | $ | 24,786 | |||||
Sanwa Holdings Corp. | 9,800 | 126,189 | ||||||
Schweiter Technologies AG | 55 | 62,895 | ||||||
Sekisui Jushi Corp. | 11,200 | 244,215 | ||||||
Systemair AB(a) | 1,900 | 25,165 | ||||||
Takara Standard Co. Ltd. | 1,376 | 23,389 | ||||||
Takasago Thermal Engineering Co. Ltd. | 17,400 | 330,588 | ||||||
Tarkett SA | 1,289 | 38,124 | ||||||
TOTO Ltd. | 3,900 | 221,330 | ||||||
Uponor OYJ | 2,765 | 48,406 | ||||||
11,047,318 | ||||||||
Capital Markets – 2.4% | ||||||||
3i Group plc | 52,326 | 678,623 | ||||||
Amundi SA(c) | 1,518 | 129,264 | ||||||
Anima Holding SpA(c) | 32,576 | 234,969 | ||||||
ASX Ltd. | 2,924 | 129,407 | ||||||
AURELIUS Equity Opportunities SE & Co. KGaA | 26,163 | 1,986,697 | ||||||
Avanza Bank Holding AB | 1,367 | 64,543 | ||||||
Azimut Holding SpA | 4,579 | 96,429 | ||||||
Banca Generali SpA | 1,320 | 42,933 | ||||||
BOCOM International Holdings Co. Ltd.* (c) | 152,000 | 43,383 | ||||||
Bolsas y Mercados Espanoles SHMSF SA | 953 | 33,483 | ||||||
Brederode SA | 726 | 45,086 | ||||||
Brewin Dolphin Holdings plc | 14,682 | 73,002 | ||||||
Brookfield Asset Management, Inc., Class A | 27,540 | 1,093,265 | ||||||
BT Investment Management Ltd. | 8,833 | 61,275 | ||||||
Bure Equity AB | 2,304 | 24,850 | ||||||
Burford Capital Ltd. | 9,671 | 191,813 | ||||||
China Smarter Energy Group Holdings Ltd.* | 162,000 | 23,325 | ||||||
CI Financial Corp. | 14,985 | 315,843 | ||||||
Close Brothers Group plc | 3,236 | 68,461 | ||||||
CMBC Capital Holdings Ltd. | 680,000 | 53,719 | ||||||
Credit Suisse Group AG (Registered)* | 79,461 | 1,348,164 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 89 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Daiwa Securities Group, Inc. | 93,000 | $ | 571,726 | |||||
Deutsche Bank AG (Registered) | 113,967 | 1,565,041 | ||||||
Deutsche Boerse AG | 6,077 | 819,760 | ||||||
EFG International AG* | 23,652 | 193,536 | ||||||
Encavis AG | 3,696 | 29,830 | ||||||
Euronext NV(c) | 1,650 | 118,416 | ||||||
Fiera Capital Corp. | 16,112 | 142,274 | ||||||
Financiere de Tubize SA | 1,063 | 77,701 | ||||||
Flow Traders(c) | 3,572 | 138,447 | ||||||
Freeman FinTech Corp. Ltd.* | 600,000 | 89,447 | ||||||
GAM Holding AG* (a) | 133,083 | 2,140,298 | ||||||
Gimv NV | 848 | 50,920 | ||||||
GMO Financial Holdings, Inc. | 13,600 | 103,282 | ||||||
Guoco Group Ltd. | 4,000 | 53,209 | ||||||
Haitong International Securities Group Ltd.(a) | 80,579 | 47,434 | ||||||
Hargreaves Lansdown plc | 5,061 | 124,742 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 36,637 | 1,200,654 | ||||||
IG Group Holdings plc | 8,113 | 92,748 | ||||||
IGM Financial, Inc. | 3,965 | 121,893 | ||||||
Intermediate Capital Group plc | 18,306 | 273,822 | ||||||
Investec plc | 47,385 | 376,844 | ||||||
IOOF Holdings Ltd.(a) | 15,976 | 108,174 | ||||||
IP Group plc* (a) | 65,116 | 120,002 | ||||||
Jafco Co. Ltd. | 300 | 13,187 | ||||||
Japan Exchange Group, Inc. | 19,200 | 356,189 | ||||||
Julius Baer Group Ltd.* | 7,128 | 426,571 | ||||||
Jupiter Fund Management plc | 12,914 | 81,020 | ||||||
Kingston Financial Group Ltd.(a) | 260,000 | 132,845 | ||||||
Leonteq AG* | 191 | 10,670 | ||||||
London Stock Exchange Group plc | 9,720 | 575,677 | ||||||
Macquarie Group Ltd. | 11,988 | 983,551 | ||||||
Magellan Financial Group Ltd.(a) | 2,577 | 45,441 | ||||||
Man Group plc | 111,213 | 277,561 | ||||||
Marusan Securities Co. Ltd. | 3,500 | 33,393 | ||||||
Mason Group Holdings Ltd.* | 2,078,905 | 55,362 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
Monex Group, Inc.(a) | 15,400 | $ | 87,819 | |||||
Natixis SA | 46,899 | 385,991 | ||||||
NEX Group plc | 6,688 | 91,012 | ||||||
Nomura Holdings, Inc. | 206,300 | 1,191,704 | ||||||
Okasan Securities Group, Inc. | 144,000 | 825,113 | ||||||
Partners Group Holding AG | 567 | 416,128 | ||||||
Perpetual Ltd.(a) | 1,210 | 36,800 | ||||||
Rathbone Brothers plc | 3,165 | 102,618 | ||||||
Rothschild & Co. | 7,290 | 277,005 | ||||||
Sanne Group plc | 12,308 | 105,275 | ||||||
SBI Holdings, Inc. | 11,200 | 283,211 | ||||||
Schroders plc | 2,873 | 130,625 | ||||||
Schroders plc (Non-Voting) | 4,377 | 142,276 | ||||||
Singapore Exchange Ltd. | 3,100 | 18,075 | ||||||
St James’s Place plc | 16,119 | 252,320 | ||||||
Thomson Reuters Corp. | 8,829 | 355,584 | ||||||
TMX Group Ltd. | 1,545 | 93,330 | ||||||
Tokai Tokyo Financial Holdings, Inc. | 13,200 | 95,901 | ||||||
TP ICAP plc | 41,148 | 267,053 | ||||||
UBS Group AG (Registered)* | 211,005 | 3,574,658 | ||||||
Value Partners Group Ltd.(a) | 89,000 | 85,051 | ||||||
Volati AB(c) | 2,584 | 13,004 | ||||||
Vontobel Holding AG (Registered) | 339 | 22,465 | ||||||
Vostok New Ventures Ltd., SDR* (a) | 8,501 | 71,368 | ||||||
VZ Holding AG | 55 | 15,529 | ||||||
Yunfeng Financial Group Ltd.* | 136,000 | 82,311 | ||||||
27,312,427 | ||||||||
Chemicals – 3.0% | ||||||||
ADEKA Corp. | 4,200 | 74,615 | ||||||
Air Liquide SA | 12,526 | 1,635,219 | ||||||
Air Water, Inc. | 6,000 | 115,915 | ||||||
Akzo Nobel NV(a) | 7,857 | 711,013 | ||||||
Arkema SA | 3,888 | 509,677 | ||||||
Asahi Kasei Corp. | 60,300 | 830,727 | ||||||
BASF SE | 27,378 | 2,855,302 | ||||||
Borregaard ASA | 6,375 | 67,879 | ||||||
C Uyemura & Co. Ltd. | 5,000 | 341,787 | ||||||
Chr Hansen Holding A/S | 2,916 | 265,372 | ||||||
Chugoku Marine Paints Ltd. | 58,500 | 577,382 |
See Accompanying Notes to the Financial Statements.
90 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
CI Takiron Corp. | 63,800 | $ | 390,059 | |||||
Clariant AG (Registered)* | 13,798 | 320,731 | ||||||
Corbion NV | 3,198 | 102,469 | ||||||
Covestro AG(c) | 3,078 | 280,996 | ||||||
Croda International plc | 4,779 | 293,639 | ||||||
Daicel Corp. | 15,700 | 181,642 | ||||||
Dainichiseika Color & Chemicals Manufacturing Co. Ltd. | 8,100 | 331,995 | ||||||
Denka Co. Ltd. | 2,600 | 92,904 | ||||||
DIC Corp. | 2,899 | 98,554 | ||||||
DuluxGroup Ltd. | 12,466 | 73,021 | ||||||
Elementis plc | 16,353 | 63,877 | ||||||
EMS-Chemie Holding AG (Registered) | 114 | 70,825 | ||||||
Essentra plc | 27,894 | 169,431 | ||||||
Evonik Industries AG | 10,125 | 360,630 | ||||||
Frutarom Industries Ltd. | 975 | 93,628 | ||||||
FUCHS PETROLUB SE | 54 | 2,786 | ||||||
FUCHS PETROLUB SE (Preference) | 2,151 | 115,752 | ||||||
Fujimori Kogyo Co. Ltd. | 11,700 | 397,217 | ||||||
Fuso Chemical Co. Ltd. | 1,100 | 28,047 | ||||||
Givaudan SA (Registered)(a) | 243 | 544,719 | ||||||
Hexpol AB | 5,994 | 62,388 | ||||||
Hitachi Chemical Co. Ltd. | 2,200 | 48,373 | ||||||
Incitec Pivot Ltd. | 65,512 | 187,917 | ||||||
Ishihara Sangyo Kaisha Ltd.* | 32,400 | 372,485 | ||||||
Israel Chemicals Ltd. | 3,780 | 16,999 | ||||||
Johnson Matthey plc | 11,178 | 507,145 | ||||||
JSP Corp. | 10,300 | 333,685 | ||||||
JSR Corp. | 8,300 | 156,632 | ||||||
K+S AG (Registered) | 11,421 | 336,830 | ||||||
Kaneka Corp. | 22,000 | 217,336 | ||||||
Kansai Paint Co. Ltd. | 6,100 | 137,358 | ||||||
Kanto Denka Kogyo Co. Ltd.(a) | 42,900 | 399,498 | ||||||
Kemira OYJ | 5,993 | 80,517 | ||||||
KH Neochem Co. Ltd. | 9,900 | 300,370 | ||||||
Koninklijke DSM NV | 5,589 | 579,511 | ||||||
Konishi Co. Ltd. | 16,200 | 264,411 | ||||||
Kumiai Chemical Industry Co. Ltd.(a) | 29,948 | 190,485 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Kuraray Co. Ltd. | 17,600 | $ | 293,052 | |||||
Kureha Corp. | 12,800 | 871,464 | ||||||
LANXESS AG | 2,603 | 193,603 | ||||||
Lenzing AG | 789 | 92,324 | ||||||
Linde AG* | 5,508 | 1,224,810 | ||||||
Lintec Corp. | 1,800 | 52,063 | ||||||
Methanex Corp. | 5,265 | 317,843 | ||||||
Mitsubishi Chemical Holdings Corp. | 81,500 | 774,222 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 9,000 | 211,707 | ||||||
Mitsui Chemicals, Inc. | 8,400 | 241,042 | ||||||
Nihon Parkerizing Co. Ltd. | 7,600 | 120,503 | ||||||
Nippon Kayaku Co. Ltd.(a) | 7,000 | 87,704 | ||||||
Nippon Paint Holdings Co. Ltd.(a) | 5,200 | 212,895 | ||||||
Nippon Shokubai Co. Ltd. | 400 | 27,197 | ||||||
Nippon Soda Co. Ltd. | 137,198 | 789,899 | ||||||
Nissan Chemical Industries Ltd. | 3,800 | 169,294 | ||||||
Nitto Denko Corp. | 4,700 | 350,057 | ||||||
NOF Corp. | 2,000 | 59,676 | ||||||
Novozymes A/S, Class B | 7,695 | 363,746 | ||||||
Nufarm Ltd. | 9,803 | 67,486 | ||||||
Nutrien Ltd. | 21,963 | 1,001,394 | ||||||
Okamoto Industries, Inc. | 3,000 | 30,048 | ||||||
Orica Ltd. | 12,012 | 180,257 | ||||||
Osaka Soda Co. Ltd. | 17,000 | 475,394 | ||||||
Sakata INX Corp. | 40,900 | 625,694 | ||||||
Sanyo Chemical Industries Ltd. | 11,500 | 543,340 | ||||||
Scapa Group plc | 4,560 | 27,409 | ||||||
Sekisui Plastics Co. Ltd. | 24,300 | 326,665 | ||||||
Shikoku Chemicals Corp. | 10,000 | 141,375 | ||||||
Shin-Etsu Chemical Co. Ltd. | 12,400 | 1,247,082 | ||||||
Shin-Etsu Polymer Co. Ltd. | 23,200 | 220,710 | ||||||
Showa Denko KK | 9,800 | 327,338 | ||||||
Sika AG | 81 | 591,605 | ||||||
Sirius Minerals plc* (a) | 232,717 | 99,365 | ||||||
SOL SpA | 3,009 | 41,372 | ||||||
Solvay SA | 3,807 | 531,716 | ||||||
Sumitomo Bakelite Co. Ltd. | 15,000 | 135,709 | ||||||
Sumitomo Chemical Co. Ltd. | 75,000 | 431,117 | ||||||
Sumitomo Seika Chemicals Co. Ltd.(a) | 8,100 | 387,882 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 91 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Symrise AG | 3,645 | $ | 295,501 | |||||
Synthomer plc | 12,732 | 86,805 | ||||||
T Hasegawa Co. Ltd. | 900 | 19,304 | ||||||
Taiyo Holdings Co. Ltd. | 900 | 38,369 | ||||||
Taiyo Nippon Sanso Corp. | 7,200 | 106,791 | ||||||
Tayca Corp. | 16,200 | 427,707 | ||||||
Teijin Ltd. | 8,200 | 154,445 | ||||||
Tessenderlo Group SA* | 1,427 | 59,999 | ||||||
Tikkurila OYJ(a) | 1,942 | 35,148 | ||||||
Toagosei Co. Ltd. | 6,900 | 81,659 | ||||||
Tokai Carbon Co. Ltd.(a) | 11,000 | 138,223 | ||||||
Tokuyama Corp. | 2,500 | 74,594 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 700 | 24,661 | ||||||
Toray Industries, Inc. | 59,700 | 557,582 | ||||||
Tosoh Corp. | 14,000 | 248,462 | ||||||
Toyo Ink SC Holdings Co. Ltd. | 8,000 | 49,422 | ||||||
Toyobo Co. Ltd. | 5,600 | 109,211 | ||||||
Ube Industries Ltd. | 9,500 | 289,970 | ||||||
Umicore SA(a) | 6,237 | 348,594 | ||||||
Victrex plc | 3,740 | 135,067 | ||||||
Wacker Chemie AG | 884 | 159,673 | ||||||
Yara International ASA | 9,315 | 394,176 | ||||||
Zeon Corp. | 8,000 | 103,888 | ||||||
34,015,060 | ||||||||
Commercial Services & Supplies – 0.9% | ||||||||
Aggreko plc | 15,795 | 159,335 | ||||||
Babcock International Group plc(a) | 36,450 | 369,404 | ||||||
Bell System24 Holdings, Inc. | 5,600 | 89,764 | ||||||
Bilfinger SE | 2,914 | 139,420 | ||||||
Bingo Industries Ltd.(a) (c) | 9,500 | 18,932 | ||||||
Boyd Group Income Fund | 300 | 25,450 | ||||||
Brambles Ltd. | 61,317 | 456,834 | ||||||
Bravida Holding AB(c) | 12,702 | 91,237 | ||||||
Caverion OYJ* (a) | 9,768 | 81,845 | ||||||
Clean TeQ Holdings Ltd.* | 7,980 | 5,542 | ||||||
Cleanaway Waste Management Ltd. | 120,181 | 143,789 | ||||||
Coor Service Management Holding AB(c) | 64,426 | 448,764 | ||||||
Dai Nippon Printing Co. Ltd. | 3,900 | 84,041 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – (continued) | ||||||||
Daiseki Co. Ltd.(a) | 2,500 | $ | 77,907 | |||||
dormakaba Holding AG* | 50 | 38,893 | ||||||
Downer EDI Ltd. | 45,846 | 237,749 | ||||||
Duskin Co. Ltd. | 5,700 | 143,718 | ||||||
Edenred | 3,379 | 116,351 | ||||||
Elis SA | 7,711 | 184,652 | ||||||
Elis SA – XLON | 4,520 | 108,839 | ||||||
G4S plc(a) | 87,480 | 311,950 | ||||||
HomeServe plc | 11,489 | 117,100 | ||||||
Intrum Justitia AB(a) | 2,887 | 77,004 | ||||||
ISS A/S | 3,015 | 105,607 | ||||||
ITAB Shop Concept AB, Class B(a) | 8,776 | 39,649 | ||||||
IWG plc | 37,095 | 126,608 | ||||||
Kokuyo Co. Ltd. | 5,600 | 101,023 | ||||||
Lassila & Tikanoja OYJ | 1,345 | 27,040 | ||||||
Loomis AB, Class B | 2,261 | 82,806 | ||||||
Mitie Group plc(a) | 272,861 | 689,263 | ||||||
Mitsubishi Pencil Co. Ltd. | 1,800 | 35,844 | ||||||
Nippon Kanzai Co. Ltd. | 1,300 | 24,830 | ||||||
Okamura Corp. | 98,200 | 1,331,769 | ||||||
Park24 Co. Ltd. | 2,200 | 62,326 | ||||||
PayPoint plc | 3,648 | 43,161 | ||||||
Pilot Corp. | 500 | 27,325 | ||||||
Prestige International, Inc. | 2,000 | 23,048 | ||||||
Prosegur Cia de Seguridad SA | 11,866 | 90,033 | ||||||
Realord Group Holdings Ltd.* | 32,000 | 19,571 | ||||||
Relia, Inc. | 2,100 | 26,695 | ||||||
Renewi plc | 85,612 | 84,429 | ||||||
Rentokil Initial plc | 45,360 | 191,803 | ||||||
Ritchie Bros Auctioneers, Inc. | 4,230 | 138,454 | ||||||
Sato Holdings Corp. | 1,100 | 30,912 | ||||||
Secom Co. Ltd. | 5,200 | 389,768 | ||||||
Securitas AB, Class B(a) | 13,932 | 226,277 | ||||||
Serco Group plc* | 102,163 | 135,437 | ||||||
SG Fleet Group Ltd. | 11,375 | 30,396 | ||||||
SmartGroup Corp. Ltd. | 918 | 7,525 | ||||||
Sohgo Security Services Co. Ltd. | 2,900 | 143,377 | ||||||
SPIE SA | 5,489 | 124,214 | ||||||
Tomra Systems ASA | 2,590 | 48,172 | ||||||
Toppan Forms Co. Ltd. | 37,600 | 419,553 | ||||||
Toppan Printing Co. Ltd. | 12,000 | 100,452 |
See Accompanying Notes to the Financial Statements.
92 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Commercial Services & Supplies – (continued) | ||||||||
Transcontinental, Inc., Class A | 57,753 | $ | 1,218,176 | |||||
Waste Connections, Inc. | 9,315 | 674,310 | ||||||
10,348,373 | ||||||||
Communications Equipment – 0.3% | ||||||||
Mitel Networks Corp.* | 91,206 | 1,017,859 | ||||||
Nokia OYJ | 324,486 | 1,951,595 | ||||||
Telefonaktiebolaget LM Ericsson, Class A(a) | 28,338 | 217,486 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 72,425 | 556,669 | ||||||
3,743,609 | ||||||||
Construction & Engineering – 2.6% | ||||||||
ACS Actividades de Construccion y Servicios SA | 16,899 | 715,220 | ||||||
Aecon Group, Inc. | 2,805 | 39,495 | ||||||
AF Gruppen ASA | 2,860 | 46,411 | ||||||
Arcadis NV(a) | 13,041 | 257,455 | ||||||
Ausdrill Ltd. | 238,400 | 502,078 | ||||||
Badger Daylighting Ltd.(a) | 2,812 | 54,246 | ||||||
Balfour Beatty plc | 31,636 | 128,194 | ||||||
Boskalis Westminster(a) | 4,560 | 135,366 | ||||||
Bouygues SA | 11,907 | 607,810 | ||||||
Burkhalter Holding AG | 456 | 43,025 | ||||||
Chiyoda Corp. | 4,000 | 41,197 | ||||||
Cie d’Entreprises CFE | 275 | 34,687 | ||||||
CIMIC Group Ltd. | 1,935 | 66,298 | ||||||
COMSYS Holdings Corp. | 4,300 | 119,854 | ||||||
Eiffage SA | 2,916 | 347,731 | ||||||
Elco Ltd. | 7,072 | 145,080 | ||||||
Elecnor SA | 37,827 | 594,134 | ||||||
Electra Ltd. | 1,377 | 345,523 | ||||||
Ferrovial SA | 16,362 | 350,596 | ||||||
FLSmidth & Co. A/S | 2,798 | 173,507 | ||||||
Fomento de Construcciones y Contratas SA* | 3,420 | 44,213 | ||||||
Galliford Try plc(a) | 92,137 | 1,164,987 | ||||||
Gold-Finance Holdings Ltd.* (c) | 89,827 | 35,595 | ||||||
Hazama Ando Corp. | 32,400 | 261,154 | ||||||
Hibiya Engineering Ltd. | 1,600 | 31,071 |
Investments | Shares | Value | ||||||
Construction & Engineering – (continued) | ||||||||
HOCHTIEF AG | 440 | $ | 80,592 | |||||
Implenia AG (Registered) | 1,972 | 151,501 | ||||||
JGC Corp.(a) | 13,400 | 328,801 | ||||||
John Laing Group plc(a) (c) | 380,376 | 1,480,572 | ||||||
Kajima Corp. | 45,000 | 433,859 | ||||||
Kandenko Co. Ltd. | 3,000 | 35,531 | ||||||
Keller Group plc | 65,286 | 933,387 | ||||||
Kier Group plc(a) | 90,558 | 1,340,848 | ||||||
Kinden Corp. | 7,500 | 130,912 | ||||||
Koninklijke BAM Groep NV(a) | 186,070 | 887,999 | ||||||
Koninklijke Volkerwessels NV | 532 | 15,131 | ||||||
Kumagai Gumi Co. Ltd. | 30,800 | 1,049,888 | ||||||
Kyowa Exeo Corp. | 3,900 | 101,576 | ||||||
Kyudenko Corp. | 2,100 | 98,451 | ||||||
Lehto Group OYJ | 1,385 | 19,009 | ||||||
Maeda Corp. | 8,000 | 98,844 | ||||||
Maeda Road Construction Co. Ltd. | 3,000 | 64,811 | ||||||
Maire Tecnimont SpA(a) | 85,779 | 437,560 | ||||||
Mirait Holdings Corp. | 13,700 | 217,097 | ||||||
Monadelphous Group Ltd. | 5,516 | 67,245 | ||||||
Mota-Engil SGPS SA | 54,432 | 236,424 | ||||||
NCC AB, Class B(a) | 2,271 | 41,989 | ||||||
Nippo Corp. | 2,000 | 45,894 | ||||||
Nippon Densetsu Kogyo Co. Ltd. | 1,700 | 34,955 | ||||||
Nippon Koei Co. Ltd. | 16,200 | 475,970 | ||||||
Nishimatsu Construction Co. Ltd. | 2,600 | 71,638 | ||||||
Obayashi Corp. | 40,900 | 471,700 | ||||||
Obrascon Huarte Lain SA* (a) | 115,138 | 540,719 | ||||||
OCI NV* (a) | 1,386 | 33,006 | ||||||
Okumura Corp. | 3,000 | 124,332 | ||||||
Peab AB | 14,286 | 127,288 | ||||||
Penta-Ocean Construction Co. Ltd. | 9,000 | 71,145 | ||||||
Porr Ag(a) | 8,181 | 291,586 | ||||||
Raito Kogyo Co. Ltd. | 48,600 | 528,970 | ||||||
Sacyr SA(a) | 265,553 | 765,527 | ||||||
Salini Impregilo SpA(a) | 153,981 | 441,659 | ||||||
Sanki Engineering Co. Ltd. | 42,100 | 469,381 | ||||||
Shikun & Binui Ltd. | 202,743 | 344,357 | ||||||
Shimizu Corp. | 39,000 | 386,347 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 93 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
SHO-BOND Holdings Co. Ltd. | 600 | $ | 45,401 | |||||
Skanska AB, Class B | 8,286 | 162,346 | ||||||
SNC-Lavalin Group, Inc. | 6,966 | 305,875 | ||||||
Star Group, Inc. (The)* | 6,416 | 199,895 | ||||||
Sumitomo Densetsu Co. Ltd. | 7,600 | 161,897 | ||||||
Sumitomo Mitsui Construction Co. Ltd. | 139,340 | 853,167 | ||||||
Sweco AB, Class B | 2,085 | 42,640 | ||||||
Taikisha Ltd. | 28,800 | 1,005,401 | ||||||
Taisei Corp. | 11,600 | 626,511 | ||||||
Takamatsu Construction Group Co. Ltd. | 13,500 | 364,688 | ||||||
Toda Corp.(a) | 9,000 | 74,352 | ||||||
Tokyu Construction Co. Ltd. | 81,800 | 876,122 | ||||||
Toshiba Plant Systems & Services Corp. | 3,800 | 79,386 | ||||||
Totetsu Kogyo Co. Ltd. | 1,800 | 53,790 | ||||||
United Engineers Ltd. | 77,800 | 159,825 | ||||||
Veidekke ASA(a) | 14,056 | 171,070 | ||||||
Vinci SA(a) | 15,552 | 1,561,443 | ||||||
WSP Global, Inc. | 1,210 | 60,002 | ||||||
YIT OYJ | 185,561 | 1,251,007 | ||||||
Yokogawa Bridge Holdings Corp. | 35,500 | 775,047 | ||||||
Yurtec Corp. | 24,100 | 210,551 | ||||||
28,801,844 | ||||||||
Construction Materials – 0.6% | ||||||||
Adelaide Brighton Ltd.(a) | 26,716 | 129,873 | ||||||
Boral Ltd. | 31,823 | 165,268 | ||||||
Breedon Group plc* | 66,896 | 77,213 | ||||||
Brickworks Ltd.(a) | 69,174 | 835,456 | ||||||
Buzzi Unicem SpA | 3,547 | 89,824 | ||||||
Buzzi Unicem SpA (Retirement Savings Plan) | 1,925 | 27,677 | ||||||
Cementir Holding SpA | 33,291 | 278,740 | ||||||
CRH plc | 27,585 | 980,630 | ||||||
CSR Ltd.(a) | 54,796 | 233,286 | ||||||
Fletcher Building Ltd.(a) | 16,895 | 75,116 | ||||||
HeidelbergCement AG | 7,533 | 739,577 | ||||||
Ibstock plc(c) | 306,800 | 1,256,726 | ||||||
Imerys SA | 3,174 | 289,913 |
Investments | Shares | Value | ||||||
Construction Materials – (continued) | ||||||||
James Hardie Industries plc, CHDI | 14,275 | $ | 254,409 | |||||
LafargeHolcim Ltd. (Registered)* | 17,982 | 1,005,640 | ||||||
Sumitomo Osaka Cement Co. Ltd. | 17,000 | 77,834 | ||||||
Taiheiyo Cement Corp. | 5,100 | 193,187 | ||||||
Vicat SA | 770 | 56,796 | ||||||
Wienerberger AG | 3,836 | 96,864 | ||||||
6,864,029 | ||||||||
Consumer Finance – 0.6% | ||||||||
AEON Financial Service Co. Ltd.(a) | 4,800 | 112,559 | ||||||
Aiful Corp.* (a) | 18,300 | 61,878 | ||||||
Allied Properties HK Ltd. | 2,022,000 | 404,490 | ||||||
Arrow Global Group plc | 153,576 | 785,826 | ||||||
B2Holding ASA | 12,936 | 32,537 | ||||||
Cembra Money Bank AG | 1,320 | 112,478 | ||||||
Credit Corp. Group Ltd.(a) | 845 | 11,456 | ||||||
Eclipx Group Ltd.(a) | 284,715 | 698,481 | ||||||
Hitachi Capital Corp. | 9,700 | 259,730 | ||||||
Hoist Finance AB(c) | 58,887 | 523,335 | ||||||
Hong Leong Finance Ltd. | 234,900 | 498,523 | ||||||
J Trust Co. Ltd.(a) | 44,800 | 316,886 | ||||||
Jaccs Co. Ltd. | 6,400 | 145,049 | ||||||
Orient Corp.(a) | 64,800 | 100,080 | ||||||
Provident Financial plc(a) | 225,688 | 2,067,162 | ||||||
Resurs Holding AB(c) | 4,712 | 30,477 | ||||||
Sun Hung Kai & Co. Ltd. | 428,996 | 265,654 | ||||||
6,426,601 | ||||||||
Containers & Packaging – 0.5% | ||||||||
Amcor Ltd. | 35,478 | 367,697 | ||||||
BillerudKorsnas AB | 10,805 | 159,548 | ||||||
Cascades, Inc. | 54,006 | 516,068 | ||||||
CCL Industries, Inc., Class B | 3,996 | 194,135 | ||||||
DS Smith plc | 49,329 | 354,936 | ||||||
FP Corp. | 600 | 37,066 | ||||||
Fuji Seal International, Inc. | 2,000 | 74,754 | ||||||
Huhtamaki OYJ(a) | 3,023 | 123,597 | ||||||
Intertape Polymer Group, Inc. | 50,625 | 787,838 | ||||||
Mayr Melnhof Karton AG | 275 | 41,798 | ||||||
Orora Ltd. | 44,370 | 111,866 |
See Accompanying Notes to the Financial Statements.
94 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Containers & Packaging – (continued) | ||||||||
Pack Corp. (The) | 9,300 | $ | 352,282 | |||||
Pact Group Holdings Ltd.(a) | 24,422 | 104,711 | ||||||
Papeles y Cartones de Europa SA | 39,852 | 772,313 | ||||||
Rengo Co. Ltd.(a) | 16,800 | 144,625 | ||||||
RPC Group plc | 26,406 | 287,616 | ||||||
Smurfit Kappa Group plc | 12,231 | 522,532 | ||||||
Toyo Seikan Group Holdings Ltd.(a) | 5,600 | 88,177 | ||||||
Vidrala SA | 1,180 | 124,034 | ||||||
Winpak Ltd. | 930 | 34,575 | ||||||
5,200,168 | ||||||||
Distributors – 0.2% | ||||||||
Arata Corp. | 11,600 | 689,056 | ||||||
Bapcor Ltd. | 25,156 | 112,035 | ||||||
Canon Marketing Japan, Inc. | 3,700 | 80,306 | ||||||
D’ieteren SA/NV | 1,847 | 78,684 | ||||||
Doshisha Co. Ltd. | 1,800 | 41,979 | ||||||
Inchcape plc | 21,789 | 218,031 | ||||||
Jardine Cycle & Carriage Ltd. | 2,222 | 57,495 | ||||||
PALTAC Corp. | 800 | 40,064 | ||||||
Uni-Select, Inc. | 38,151 | 591,334 | ||||||
1,908,984 | ||||||||
Diversified Consumer Services – 0.2% | ||||||||
AA plc(a) | 500,696 | 938,247 | ||||||
AcadeMedia AB* (c) | 50,396 | 336,050 | ||||||
Benesse Holdings, Inc. | 1,600 | 58,341 | ||||||
Dignity plc | 4,936 | 74,173 | ||||||
Enercare, Inc. | 6,265 | 84,840 | ||||||
G8 Education Ltd.(a) | 98,334 | 167,754 | ||||||
IDP Education Ltd.(a) | 6,853 | 39,729 | ||||||
InvoCare Ltd.(a) | 5,225 | 51,391 | ||||||
Navitas Ltd.(a) | 15,580 | 50,335 | ||||||
1,800,860 | ||||||||
Diversified Financial Services – 0.9% | ||||||||
Ackermans & van Haaren NV | 784 | 141,895 | ||||||
Aker ASA, Class A | 760 | 47,814 | ||||||
AMP Ltd. | 129,924 | 396,215 | ||||||
Axactor AB* (a) | 113,164 | 39,920 |
Investments | Shares | Value | ||||||
Diversified Financial Services – (continued) | ||||||||
Banca Farmafactoring SpA(c) | 51,030 | $ | 319,678 | |||||
Banca IFIS SpA | 1,617 | 63,885 | ||||||
Banca Mediolanum SpA | 14,294 | 115,018 | ||||||
Banque Nationale de Belgique | 121 | 431,267 | ||||||
Cerved Information Solutions SpA | 10,431 | 126,783 | ||||||
Challenger Ltd. | 12,100 | 98,644 | ||||||
ECN Capital Corp. | 19,456 | 51,601 | ||||||
Element Fleet Management Corp. | 22,516 | 85,185 | ||||||
Eurazeo SA(a) | 3,240 | 284,981 | ||||||
EXOR NV | 5,589 | 415,557 | ||||||
FFP | 330 | 39,950 | ||||||
First Pacific Co. Ltd. | 218,000 | 112,219 | ||||||
Fuyo General Lease Co. Ltd. | 700 | 47,530 | ||||||
Goldin Financial Holdings Ltd.* | 60,000 | 28,134 | ||||||
GRENKE AG | 495 | 58,520 | ||||||
Groupe Bruxelles Lambert SA | 2,106 | 241,623 | ||||||
HAL Trust(a) | 2,916 | 539,741 | ||||||
IBJ Leasing Co. Ltd. | 29,938 | 827,621 | ||||||
Industrivarden AB, Class A | 10,218 | 225,443 | ||||||
Industrivarden AB, Class C | 6,811 | 144,236 | ||||||
Investment AB Latour, Class B | 3,740 | 41,152 | ||||||
Investment AB Oresund* | 5,171 | 77,479 | ||||||
Investor AB, Class A | 2,092 | 90,064 | ||||||
Investor AB, Class B | 14,175 | 621,119 | ||||||
Japan Securities Finance Co. Ltd. | 40,500 | 266,484 | ||||||
KBC Ancora | 1,377 | 83,600 | ||||||
Kinnevik AB, Class B | 5,472 | 198,464 | ||||||
L E Lundbergforetagen AB, Class B(a) | 1,970 | 134,067 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 22,000 | 140,132 | ||||||
Onex Corp. | 2,204 | 163,501 | ||||||
ORIX Corp. | 74,600 | 1,311,678 | ||||||
Pargesa Holding SA | 1,265 | 119,037 | ||||||
Ricoh Leasing Co. Ltd. | 19,200 | 641,316 | ||||||
Sofina SA | 330 | 57,733 | ||||||
SRH NV* ‡ (b) | 2,857 | — | ||||||
Standard Life Aberdeen plc | 117,693 | 592,168 | ||||||
Tokyo Century Corp. | 8,700 | 543,825 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 95 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Financial Services – (continued) | ||||||||
Wendel SA | 1,701 | $ | 257,305 | |||||
Zenkoku Hosho Co. Ltd. | 1,600 | 66,164 | ||||||
10,288,748 | ||||||||
Diversified Telecommunication Services – 1.8% | ||||||||
B Communications Ltd.* | 4,673 | 57,356 | ||||||
BCE, Inc. | 9,072 | 385,610 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 46,132 | 58,237 | ||||||
BT Group plc | 476,928 | 1,638,629 | ||||||
Cellnex Telecom SA(c) | 3,223 | 86,603 | ||||||
Chorus Ltd. | 17,070 | 48,651 | ||||||
Com Hem Holding AB | 5,606 | 97,590 | ||||||
Deutsche Telekom AG (Registered) | 104,976 | 1,838,430 | ||||||
Ei Towers SpA | 1,054 | 60,998 | ||||||
Elisa OYJ | 4,332 | 192,190 | ||||||
HKBN Ltd. | 51,500 | 72,182 | ||||||
HKT Trust & HKT Ltd. | 87,400 | 115,149 | ||||||
Hutchison Telecommunications Hong Kong Holdings Ltd.(a) | 1,202,000 | 444,150 | ||||||
Iliad SA | 772 | 154,787 | ||||||
Infrastrutture Wireless Italiane SpA(c) | 5,179 | 41,767 | ||||||
Inmarsat plc(a) | 23,444 | 121,445 | ||||||
Koninklijke KPN NV | 141,264 | 439,830 | ||||||
NetLink NBN Trust* (c) | 7,600 | 4,649 | ||||||
Nippon Telegraph & Telephone Corp. | 36,700 | 1,745,703 | ||||||
Orange SA | 120,528 | 2,201,075 | ||||||
PCCW Ltd. | 206,035 | 127,849 | ||||||
Proximus SADP | 4,010 | 123,205 | ||||||
Singapore Telecommunications Ltd. | 218,700 | 581,416 | ||||||
Spark New Zealand Ltd. | 51,328 | 125,133 | ||||||
SpeedCast International Ltd. | 191,484 | 854,241 | ||||||
Sunrise Communications Group AG* (c) | 770 | 60,751 | ||||||
Swisscom AG (Registered) | 648 | 312,250 | ||||||
TDC A/S* | 46,080 | 375,416 | ||||||
Telecom Italia SpA* (a) | 462,335 | 457,041 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
Telecom Italia SpA (Retirement Savings Plan) | 460,092 | $ | 396,345 | |||||
Telefonica Deutschland Holding AG | 38,677 | 185,096 | ||||||
Telefonica SA | 266,733 | 2,717,676 | ||||||
Telekom Austria AG* | 6,934 | 66,184 | ||||||
Telenor ASA | 30,699 | 681,340 | ||||||
Telia Co. AB | 162,972 | 804,887 | ||||||
Telstra Corp. Ltd. | 254,421 | 610,718 | ||||||
TELUS Corp. | 5,320 | 190,689 | ||||||
TPG Telecom Ltd.(a) | 22,040 | 92,834 | ||||||
Vocus Group Ltd.* (a) | 552,420 | 1,021,636 | ||||||
19,589,738 | ||||||||
Electric Utilities – 1.3% | ||||||||
Acciona SA | 2,469 | 207,083 | ||||||
Alpiq Holding AG (Registered)* | 1,295 | 98,116 | ||||||
AusNet Services | 33,122 | 43,004 | ||||||
BKW AG | 1,400 | 91,504 | ||||||
Chubu Electric Power Co., Inc. | 31,700 | 496,394 | ||||||
Chugoku Electric Power Co., Inc. (The) | 12,306 | 154,071 | ||||||
CK Infrastructure Holdings Ltd. | 24,000 | 189,902 | ||||||
CLP Holdings Ltd. | 69,500 | 721,721 | ||||||
Contact Energy Ltd. | 20,140 | 76,346 | ||||||
Direct Energie | 576 | 29,438 | ||||||
EDP – Energias de Portugal SA(a) | 147,420 | 547,875 | ||||||
Electricite de France SA | 18,711 | 263,367 | ||||||
Elia System Operator SA/NV | 1,089 | 68,944 | ||||||
Emera, Inc.(a) | 6,966 | 217,302 | ||||||
Endesa SA | 16,605 | 388,604 | ||||||
Enel SpA | 403,137 | 2,565,885 | ||||||
EVN AG | 2,240 | 45,954 | ||||||
Fortis, Inc. | 12,555 | 422,107 | ||||||
Fortum OYJ(a) | 11,259 | 259,956 | ||||||
Genesis Energy Ltd. | 13,435 | 21,299 | ||||||
HK Electric Investments & HK Electric Investments Ltd.(a) (c) | 152,000 | 141,382 | ||||||
Hokkaido Electric Power Co., Inc.(a) | 18,200 | 120,751 | ||||||
Hokuriku Electric Power Co.* (a) | 15,000 | 153,119 |
See Accompanying Notes to the Financial Statements.
96 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
Iberdrola SA | 201,746 | $ | 1,563,897 | |||||
Infratil Ltd. | 37,798 | 85,091 | ||||||
Kansai Electric Power Co., Inc. (The) | 36,500 | 510,350 | ||||||
Kyushu Electric Power Co., Inc. | 32,400 | 400,318 | ||||||
Mercury NZ Ltd.(a) | 17,270 | 38,817 | ||||||
Okinawa Electric Power Co., Inc. (The) | 41,372 | 1,259,025 | ||||||
Orsted A/S(c) | 5,670 | 374,313 | ||||||
Power Assets Holdings Ltd. | 37,000 | 275,558 | ||||||
Red Electrica Corp. SA | 13,527 | 282,413 | ||||||
Romande Energie Holding SA (Registered) | 76 | 89,060 | ||||||
Shikoku Electric Power Co., Inc. | 8,600 | 109,322 | ||||||
Spark Infrastructure Group(a) | 42,054 | 74,600 | ||||||
SSE plc | 64,233 | 1,221,789 | ||||||
Terna Rete Elettrica Nazionale SpA | 44,064 | 264,966 | ||||||
Tohoku Electric Power Co., Inc. | 28,900 | 372,656 | ||||||
Tokyo Electric Power Co. Holdings, Inc.* | 83,715 | 398,588 | ||||||
Trustpower Ltd. | 25,928 | 103,767 | ||||||
Verbund AG | 3,625 | 112,734 | ||||||
14,861,388 | ||||||||
Electrical Equipment – 1.0% | ||||||||
ABB Ltd. (Registered) | 62,370 | 1,464,268 | ||||||
Ballard Power Systems, Inc.* | 3,952 | 12,979 | ||||||
Daihen Corp. | 101,000 | 786,402 | ||||||
Fagerhult AB | 2,937 | 30,065 | ||||||
Fuji Electric Co. Ltd. | 24,000 | 171,953 | ||||||
Fujikura Ltd. | 12,500 | 85,675 | ||||||
Furukawa Electric Co. Ltd. | 2,900 | 143,112 | ||||||
Futaba Corp. | 3,400 | 70,439 | ||||||
GS Yuasa Corp. | 6,000 | 32,351 | ||||||
Huber + Suhner AG (Registered) | 867 | 49,836 | ||||||
Johnson Electric Holdings Ltd. | 10,500 | 36,658 | ||||||
Legrand SA | 8,100 | 631,224 | ||||||
Mabuchi Motor Co. Ltd. | 2,000 | 100,891 | ||||||
Melrose Industries plc | 65,705 | 206,337 |
Investments | Shares | Value | ||||||
Electrical Equipment – (continued) | ||||||||
Mitsubishi Electric Corp. | 66,400 | $ | 1,019,741 | |||||
Nexans SA | 2,204 | 116,607 | ||||||
Nidec Corp. | 8,455 | 1,324,366 | ||||||
Nissin Electric Co. Ltd. | 7,200 | 72,510 | ||||||
Nitto Kogyo Corp. | 24,600 | 423,320 | ||||||
NKT A/S* (a) | 2,736 | 81,770 | ||||||
Nordex SE* | 57,753 | 664,279 | ||||||
OSRAM Licht AG | 2,835 | 163,624 | ||||||
Philips Lighting NV(c) | 7,290 | 222,308 | ||||||
Prysmian SpA | 9,315 | 274,382 | ||||||
Sanyo Denki Co. Ltd. | 3,100 | 268,567 | ||||||
Schneider Electric SE* | 15,066 | 1,370,302 | ||||||
SGL Carbon SE* | 4,984 | 67,262 | ||||||
Siemens Gamesa Renewable Energy SA | 12,956 | 223,296 | ||||||
Sinfonia Technology Co. Ltd. | 162,000 | 574,421 | ||||||
Somfy SA | 275 | 27,378 | ||||||
TKH Group NV, CVA | 2,194 | 138,901 | ||||||
Ushio, Inc. | 5,900 | 83,250 | ||||||
Vestas Wind Systems A/S | 5,670 | 367,969 | ||||||
11,306,443 | ||||||||
Electronic Equipment, Instruments & Components – 1.6% | ||||||||
Alps Electric Co. Ltd. | 9,500 | 210,793 | ||||||
ALSO Holding AG (Registered)* | 1,701 | 211,014 | ||||||
Amano Corp. | 2,600 | 64,652 | ||||||
Anritsu Corp. | 6,200 | 81,590 | ||||||
Azbil Corp. | 1,500 | 69,911 | ||||||
Barco NV | 440 | 56,988 | ||||||
Canon Electronics, Inc. | 13,200 | 307,246 | ||||||
Celestica, Inc.* | 99,539 | 1,147,616 | ||||||
Citizen Watch Co. Ltd. | 10,300 | 77,185 | ||||||
Comet Holding AG (Registered)* | 196 | 25,819 | ||||||
CONEXIO Corp. | 18,300 | 406,890 | ||||||
Datalogic SpA | 535 | 17,129 | ||||||
Dexerials Corp. | 5,600 | 52,763 | ||||||
Electrocomponents plc | 24,459 | 205,164 | ||||||
Enplas Corp.(a) | 8,100 | 234,284 | ||||||
Evertz Technologies Ltd. | 1,712 | 23,691 | ||||||
FIH Mobile Ltd. | 76,000 | 13,073 | ||||||
Fingerprint Cards AB, Class B* | 242,726 | 210,577 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 97 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
FIT Hon Teng Ltd.(c) | 76,000 | $ | 29,535 | |||||
Halma plc | 17,253 | 290,627 | ||||||
Hamamatsu Photonics KK | 3,400 | 131,122 | ||||||
Hexagon AB, Class B | 7,614 | 442,401 | ||||||
Hirose Electric Co. Ltd. | 782 | 110,198 | ||||||
Hitachi High-Technologies Corp. | 1,700 | 79,388 | ||||||
Hitachi Ltd. | 236,000 | 1,728,833 | ||||||
Hochiki Corp. | 9,000 | 180,781 | ||||||
Horiba Ltd. | 300 | 21,851 | ||||||
Hosiden Corp.(a) | 2,700 | 32,373 | ||||||
Inficon Holding AG (Registered)* | 110 | 66,229 | ||||||
Ingenico Group SA | 1,766 | 154,478 | ||||||
Iriso Electronics Co. Ltd. | 1,200 | 76,107 | ||||||
Japan Aviation Electronics Industry Ltd. | 2,044 | 34,968 | ||||||
Japan Display, Inc.* (a) | 35,400 | 46,909 | ||||||
Jenoptik AG | 2,585 | 94,321 | ||||||
Kaga Electronics Co. Ltd. | 18,600 | 460,304 | ||||||
Keyence Corp. | 2,700 | 1,652,447 | ||||||
Kyocera Corp. | 11,700 | 748,244 | ||||||
Laird plc | 426,141 | 1,155,695 | ||||||
Landis+Gyr Group AG* | 988 | 74,756 | ||||||
LEM Holding SA (Registered) | 27 | 42,768 | ||||||
Macnica Fuji Electronics Holdings, Inc. | 32,400 | 556,359 | ||||||
Murata Manufacturing Co. Ltd. | 6,400 | 810,053 | ||||||
Mycronic AB(a) | 4,702 | 54,318 | ||||||
Nichicon Corp. | 5,100 | 57,746 | ||||||
Nippon Ceramic Co. Ltd. | 900 | 23,934 | ||||||
Nippon Chemi-Con Corp. | 16,200 | 376,779 | ||||||
Nippon Electric Glass Co. Ltd. | 2,600 | 74,965 | ||||||
Nippon Signal Co. Ltd. | 17,700 | 168,063 | ||||||
Nissha Co. Ltd.(a) | 1,800 | 42,555 | ||||||
Nohmi Bosai Ltd. | 26,300 | 566,258 | ||||||
Oki Electric Industry Co. Ltd.(a) | 74,900 | 1,013,041 | ||||||
Omron Corp. | 8,400 | 455,984 | ||||||
Optex Group Co. Ltd. | 1,000 | 30,112 | ||||||
Renishaw plc | 1,617 | 105,034 | ||||||
Ryosan Co. Ltd. | 1,400 | 52,200 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Shimadzu Corp. | 7,000 | $ | 190,377 | |||||
Siix Corp. | 2,028 | 40,792 | ||||||
Smart Metering Systems plc | 2,964 | 32,456 | ||||||
Spectris plc | 3,070 | 113,746 | ||||||
Taiyo Yuden Co. Ltd. | 2,500 | 44,528 | ||||||
TDK Corp. | 4,300 | 371,350 | ||||||
Topcon Corp.(a) | 2,200 | 43,829 | ||||||
Truly International Holdings Ltd. | 1,272,000 | 291,734 | ||||||
V Technology Co. Ltd. | 100 | 26,155 | ||||||
Venture Corp. Ltd. | 18,300 | 289,555 | ||||||
Yaskawa Electric Corp. | 6,400 | 261,439 | ||||||
Yokogawa Electric Corp. | 8,000 | 176,486 | ||||||
17,340,568 | ||||||||
Energy Equipment & Services – 0.8% | ||||||||
Aker Solutions ASA* (c) | 7,535 | 51,299 | ||||||
BW Offshore Ltd.* | 89,829 | 492,254 | ||||||
CES Energy Solutions Corp. | 31,144 | 152,811 | ||||||
Enerflex Ltd. | 3,305 | 40,450 | ||||||
Ensign Energy Services, Inc.(a) | 92,221 | 442,419 | ||||||
Hunting plc* | 21,556 | 237,818 | ||||||
John Wood Group plc(a) | 38,718 | 303,224 | ||||||
Modec, Inc. | 16,200 | 430,372 | ||||||
Mullen Group Ltd.(a) | 7,372 | 83,671 | ||||||
Ocean Yield ASA | 7,224 | 62,401 | ||||||
Odfjell Drilling Ltd.* | 40,528 | 180,859 | ||||||
Pason Systems, Inc. | 2,356 | 32,989 | ||||||
Petrofac Ltd. | 235,872 | 1,960,965 | ||||||
Petroleum Geo-Services ASA* (a) | 274,185 | 1,186,261 | ||||||
Precision Drilling Corp.* | 26,504 | 94,690 | ||||||
Saipem SpA* | 22,351 | 85,712 | ||||||
SBM Offshore NV | 9,020 | 151,809 | ||||||
Schoeller-Bleckmann Oilfield Equipment AG* | 202 | 25,113 | ||||||
ShawCor Ltd. | 4,484 | 86,885 | ||||||
Subsea 7 SA | 10,602 | 149,149 | ||||||
TechnipFMC plc | 17,091 | 563,319 | ||||||
Tecnicas Reunidas SA(a) | 29,048 | 938,813 | ||||||
Tenaris SA | 11,856 | 223,031 | ||||||
TGS NOPEC Geophysical Co. ASA | 1,140 | 36,173 |
See Accompanying Notes to the Financial Statements.
98 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Energy Equipment & Services – (continued) | ||||||||
Trican Well Service Ltd.* | 20,748 | $ | 55,352 | |||||
Vallourec SA* (a) | 23,467 | 141,764 | ||||||
WorleyParsons Ltd.(a) | 15,647 | 192,049 | ||||||
8,401,652 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.7% | ||||||||
Abacus Property Group | 269,244 | 735,725 | ||||||
Activia Properties, Inc. | 15 | 66,484 | ||||||
Advance Residence Investment Corp. | 41 | 105,624 | ||||||
Aedifica SA | 1,145 | 104,031 | ||||||
AEON REIT Investment Corp. | 29 | 30,080 | ||||||
ALE Property Group(a) | 9,405 | 37,343 | ||||||
Allied Properties REIT | 622 | 20,126 | ||||||
alstria office REIT-AG | 6,756 | 101,706 | ||||||
Altarea SCA | 118 | 30,082 | ||||||
Argosy Property Ltd. | 64,665 | 46,246 | ||||||
Artis REIT(a) | 56,900 | 594,322 | ||||||
Ascendas REIT | 121,500 | 245,010 | ||||||
Ascott Residence Trust | 55,364 | 47,668 | ||||||
Assura plc | 60,733 | 49,856 | ||||||
Aventus Retail Property Fund Ltd.(a) | 185,435 | 300,948 | ||||||
Befimmo SA | 19,440 | 1,263,623 | ||||||
Beni Stabili SpA SIIQ | 174,762 | 165,645 | ||||||
Big Yellow Group plc | 17,823 | 226,215 | ||||||
British Land Co. plc (The) | 37,341 | 345,826 | ||||||
BWP Trust(a) | 44,067 | 104,116 | ||||||
Canadian Apartment Properties REIT | 5,068 | 146,432 | ||||||
Canadian REIT | 3,144 | 123,852 | ||||||
CapitaLand Commercial Trust | 22,800 | 31,340 | ||||||
CapitaLand Mall Trust | 35,200 | 55,829 | ||||||
CapitaLand Retail China Trust | 95,662 | 113,432 | ||||||
CDL Hospitality Trusts | 36,800 | 49,472 | ||||||
Champion REIT | 51,000 | 36,130 | ||||||
Charter Hall Group | 13,598 | 60,560 | ||||||
Charter Hall Long Wale REIT(a) | 142,479 | 439,881 | ||||||
Charter Hall Retail REIT | 302,859 | 903,022 | ||||||
Choice Properties REIT(a) | 4,225 | 37,671 | ||||||
Cofinimmo SA | 456 | 60,603 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Comforia Residential REIT, Inc. | 34 | $ | 77,958 | |||||
Cominar REIT | 11,020 | 107,711 | ||||||
Crombie REIT | 1,400 | 13,575 | ||||||
Cromwell Property Group(a) | 1,219,618 | 998,882 | ||||||
CT REIT | 3,332 | 34,049 | ||||||
Daiwa House REIT Investment Corp. | 42 | 100,178 | ||||||
Derwent London plc | 3,404 | 149,563 | ||||||
Dexus | 44,388 | 317,975 | ||||||
Dream Global REIT | 86,427 | 922,958 | ||||||
Dream Office REIT | 7,025 | 130,313 | ||||||
Eurocommercial Properties NV, CVA | 3,593 | 150,635 | ||||||
Far East Hospitality Trust | 53,300 | 27,172 | ||||||
First REIT | 26,713 | 27,640 | ||||||
Folkestone Education Trust | 14,718 | 31,774 | ||||||
Fonciere Des Regions | 1,855 | 207,648 | ||||||
Frasers Centrepoint Trust | 25,000 | 42,294 | ||||||
Frasers Commercial Trust | 23,000 | 24,319 | ||||||
Frasers Hospitality Trust | 39,200 | 22,205 | ||||||
Frasers Logistics & Industrial Trust(c) | 113,800 | 90,246 | ||||||
Frontier Real Estate Investment Corp. | 6 | 24,729 | ||||||
Gecina SA | 2,217 | 384,644 | ||||||
Global One Real Estate Investment Corp. | 48 | 48,077 | ||||||
GLP J-Reit | 63 | 67,649 | ||||||
Goodman Group | 48,600 | 332,739 | ||||||
Goodman Property Trust | 19,085 | 18,356 | ||||||
GPT Group (The) | 54,837 | 200,346 | ||||||
Granite REIT | 3,482 | 137,194 | ||||||
Great Portland Estates plc | 10,614 | 101,952 | ||||||
Green REIT plc | 63,113 | 115,752 | ||||||
Growthpoint Properties Australia Ltd. | 15,352 | 39,864 | ||||||
H&R REIT | 11,108 | 178,671 | ||||||
Hamborner REIT AG | 6,058 | 68,216 | ||||||
Hammerson plc | 39,204 | 296,447 | ||||||
Hankyu Reit, Inc. | 26 | 33,194 | ||||||
Hansteen Holdings plc | 41,597 | 76,086 | ||||||
Heiwa Real Estate REIT, Inc. | 73 | 69,848 | ||||||
Hibernia REIT plc | 148,716 | 266,643 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 99 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Hispania Activos Inmobiliarios SOCIMI SA | 5,003 | $ | 106,385 | |||||
Hoshino Resorts REIT, Inc.(a) | 8 | 39,333 | ||||||
Hulic Reit, Inc. | 23 | 35,501 | ||||||
ICADE* | 2,599 | 258,588 | ||||||
Ichigo Office REIT Investment | 1,322 | 982,212 | ||||||
Immobiliare Grande Distribuzione SIIQ SpA(a) | 36,969 | 346,742 | ||||||
Inmobiliaria Colonial Socimi SA(a) | 9,408 | 109,575 | ||||||
Intu Properties plc | 4,277 | 11,505 | ||||||
Invesco Office J-Reit, Inc.(a) | 5,832 | 736,561 | ||||||
Investa Office Fund | 15,730 | 52,126 | ||||||
Invincible Investment Corp. | 121 | 54,073 | ||||||
Japan Hotel REIT Investment Corp. | 77 | 58,265 | ||||||
Japan Logistics Fund, Inc. | 19 | 38,495 | ||||||
Japan Prime Realty Investment Corp. | 25 | 90,701 | ||||||
Japan Real Estate Investment Corp. | 33 | 171,295 | ||||||
Japan Rental Housing Investments, Inc. | 26 | 20,244 | ||||||
Japan Retail Fund Investment Corp. | 133 | 249,166 | ||||||
Kenedix Office Investment Corp. | 9 | 55,271 | ||||||
Kenedix Residential Next Investment Corp. | 34 | 50,087 | ||||||
Kenedix Retail REIT Corp. | 21 | 44,447 | ||||||
Keppel DC REIT | 139,440 | 150,598 | ||||||
Keppel REIT | 40,233 | 37,679 | ||||||
Killam Apartment REIT | 42,039 | 465,005 | ||||||
Kiwi Property Group Ltd. | 25,924 | 25,024 | ||||||
Klepierre SA(a) | 6,561 | 268,884 | ||||||
Land Securities Group plc | 34,992 | 476,372 | ||||||
Lar Espana Real Estate Socimi SA | 3,116 | 35,389 | ||||||
LaSalle Logiport REIT | 58 | 59,524 | ||||||
Link REIT | 60,301 | 534,762 | ||||||
Lippo Malls Indonesia Retail Trust | 383,400 | 94,109 | ||||||
LondonMetric Property plc | 38,352 | 100,524 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Manulife US REIT(c) | 15,200 | $ | 14,440 | |||||
Mapletree Commercial Trust | 32,090 | 39,263 | ||||||
Mapletree Greater China Commercial Trust(c) | 49,500 | 44,489 | ||||||
Mapletree Industrial Trust | 32,742 | 50,199 | ||||||
Mapletree Logistics Trust(a) | 72,123 | 69,179 | ||||||
MCUBS MidCity Investment Corp. | 100 | 75,394 | ||||||
Mercialys SA | 3,572 | 68,404 | ||||||
Merlin Properties Socimi SA | 20,088 | 310,660 | ||||||
Mirvac Group | 198,774 | 336,100 | ||||||
Morguard REIT | 22,518 | 233,796 | ||||||
Mori Hills REIT Investment Corp.(a) | 13 | 16,692 | ||||||
National Storage REIT | 441,855 | 533,655 | ||||||
NewRiver REIT plc(a) | 241,457 | 964,455 | ||||||
Nippon Accommodations Fund, Inc. | 8 | 35,787 | ||||||
Nippon Building Fund, Inc. | 40 | 224,812 | ||||||
Nippon Prologis REIT, Inc. | 41 | 86,290 | ||||||
NIPPON REIT Investment Corp. | 33 | 100,274 | ||||||
Nomura Real Estate Master Fund, Inc. | 78 | 108,847 | ||||||
Northview Apartment REIT | 19,764 | 393,291 | ||||||
NorthWest Healthcare Properties REIT | 42,120 | 367,989 | ||||||
Orix JREIT, Inc. | 134 | 204,138 | ||||||
OUE Hospitality Trust | 60,500 | 38,382 | ||||||
Parkway Life REIT | 12,500 | 26,340 | ||||||
Precinct Properties New Zealand Ltd. | 22,735 | 20,504 | ||||||
Premier Investment Corp. | 90 | 88,088 | ||||||
Primary Health Properties plc | 44,187 | 68,651 | ||||||
Property for Industry Ltd. | 51,499 | 59,872 | ||||||
Pure Industrial Real Estate Trust | 122,775 | 773,838 | ||||||
RDI REIT plc | 758,566 | 387,625 | ||||||
Regal REIT | 762,000 | 235,933 | ||||||
Reit 1 Ltd. | 139,725 | 561,945 | ||||||
Retail Estates NV | 666 | 58,579 | ||||||
RioCan REIT | 10,031 | 182,709 | ||||||
Safestore Holdings plc | 12,195 | 92,046 | ||||||
Scentre Group | 132,840 | 404,105 | ||||||
Secure Income REIT plc | 6,740 | 36,112 |
See Accompanying Notes to the Financial Statements.
100 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Segro plc | 46,170 | $ | 410,933 | |||||
Sekisui House Reit, Inc. | 137 | 88,105 | ||||||
Shaftesbury plc | 15,160 | 211,103 | ||||||
Shopping Centres Australasia Property Group(a) | 33,990 | 61,064 | ||||||
SmartCentres REIT | 7,068 | 158,788 | ||||||
SPH REIT | 44,800 | 33,497 | ||||||
Stockland | 91,611 | 286,292 | ||||||
Sunlight REIT | 55,000 | 37,282 | ||||||
Suntec REIT(a) | 3,000 | 4,441 | ||||||
Terreis(a) | 968 | 49,471 | ||||||
Tokyu REIT, Inc.(a) | 40 | 53,809 | ||||||
Tritax Big Box REIT plc | 105,902 | 218,504 | ||||||
Unibail-Rodamco SE | 3,321 | 798,073 | ||||||
UNITE Group plc (The) | 9,133 | 104,849 | ||||||
United Urban Investment Corp. | 84 | 128,812 | ||||||
Vicinity Centres | 141,912 | 261,378 | ||||||
Vital Healthcare Property Trust | 43,976 | 64,295 | ||||||
Warehouses De Pauw CVA, CVA | 824 | 101,547 | ||||||
Wereldhave NV | 31,616 | 1,272,008 | ||||||
Westfield Corp. | 73,224 | 508,513 | ||||||
Workspace Group plc | 8,939 | 136,542 | ||||||
30,677,033 | ||||||||
Food & Staples Retailing – 1.5% | ||||||||
Aeon Co. Ltd. | 33,813 | 675,951 | ||||||
Ain Holdings, Inc. | 600 | 40,027 | ||||||
Alimentation Couche-Tard, Inc., Class B | 13,851 | 599,765 | ||||||
Arcs Co. Ltd. | 43,418 | 1,187,175 | ||||||
Axfood AB | 3,184 | 59,343 | ||||||
Axial Retailing, Inc. | 1,100 | 44,834 | ||||||
Belc Co. Ltd. | 800 | 43,062 | ||||||
Carrefour SA | 27,505 | 566,099 | ||||||
Casino Guichard Perrachon SA(a) | 2,660 | 138,065 | ||||||
Cawachi Ltd. | 8,900 | 207,240 | ||||||
cocokara fine, Inc.(a) | 3,500 | 253,644 | ||||||
Colruyt SA | 1,990 | 112,234 | ||||||
Cosmos Pharmaceutical Corp. | 300 | 67,471 | ||||||
Create SD Holdings Co. Ltd. | 2,000 | 57,939 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
Daikokutenbussan Co. Ltd. | 400 | $ | 20,653 | |||||
Dairy Farm International Holdings Ltd. | 7,600 | 63,992 | ||||||
Distribuidora Internacional de Alimentacion SA | 3,628 | 16,876 | ||||||
Empire Co. Ltd., Class A | 3,448 | 66,784 | ||||||
FamilyMart UNY Holdings Co. Ltd.(a) | 2,737 | 265,884 | ||||||
Genky DrugStores Co. Ltd.* (a) | 7,600 | 297,610 | ||||||
George Weston Ltd. | 1,087 | 89,193 | ||||||
Heiwado Co. Ltd. | 1,200 | 28,622 | ||||||
ICA Gruppen AB(a) | 1,931 | 60,185 | ||||||
Inageya Co. Ltd. | 2,398 | 39,753 | ||||||
Itochu-Shokuhin Co. Ltd. | 400 | 22,298 | ||||||
J Sainsbury plc | 113,319 | 482,287 | ||||||
Jean Coutu Group PJC, Inc. (The), Class A | 4,943 | 94,815 | ||||||
Jeronimo Martins SGPS SA | 6,414 | 112,676 | ||||||
Kato Sangyo Co. Ltd. | 9,600 | 353,996 | ||||||
Kesko OYJ, Class A | 562 | 32,049 | ||||||
Kesko OYJ, Class B | 2,318 | 136,390 | ||||||
Kobe Bussan Co. Ltd. | 400 | 19,411 | ||||||
Koninklijke Ahold Delhaize NV | 71,523 | 1,728,714 | ||||||
Kusuri no Aoki Holdings Co. Ltd. | 600 | 41,179 | ||||||
Lawson, Inc. | 1,200 | 79,287 | ||||||
Life Corp. | 700 | 17,490 | ||||||
Loblaw Cos. Ltd. | 5,994 | 305,323 | ||||||
Madison Holdings Group Ltd.* | 44,000 | 9,755 | ||||||
MARR SpA | 1,155 | 34,915 | ||||||
Matsumotokiyoshi Holdings Co. Ltd. | 3,600 | 160,713 | ||||||
Metcash Ltd.(a) | 130,410 | 354,384 | ||||||
METRO AG | 11,178 | 162,266 | ||||||
Metro, Inc. | 6,232 | 198,051 | ||||||
Ministop Co. Ltd. | 1,000 | 20,754 | ||||||
Nihon Chouzai Co. Ltd. | 4,400 | 136,916 | ||||||
North West Co., Inc. (The) | 5,684 | 122,419 | ||||||
Olam International Ltd. | 35,100 | 60,442 | ||||||
Qol Co. Ltd. | 1,500 | 30,816 | ||||||
Rallye SA(a) | 24,867 | 388,773 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 101 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | 5,103 | $ | 233,599 | |||||
Seven & i Holdings Co. Ltd. | 24,600 | 1,080,219 | ||||||
Sheng Siong Group Ltd. | 51,500 | 39,674 | ||||||
Shufersal Ltd. | 3,578 | 20,595 | ||||||
Sligro Food Group NV | 1,155 | 59,936 | ||||||
Sogo Medical Co. Ltd. | 2,000 | 46,717 | ||||||
Sonae SGPS SA | 76,391 | 104,109 | ||||||
Sugi Holdings Co. Ltd. | 800 | 46,644 | ||||||
Sundrug Co. Ltd. | 1,600 | 82,321 | ||||||
Tesco plc | 329,505 | 1,070,617 | ||||||
Tsuruha Holdings, Inc. | 900 | 129,376 | ||||||
United Super Markets Holdings, Inc. | 2,000 | 26,283 | ||||||
Valor Holdings Co. Ltd. | 42,800 | 1,194,919 | ||||||
Welcia Holdings Co. Ltd. | 1,800 | 92,611 | ||||||
Wesfarmers Ltd. | 29,565 | 976,821 | ||||||
Wm Morrison Supermarkets plc | 110,565 | 370,209 | ||||||
Woolworths Group Ltd. | 39,690 | 834,686 | ||||||
Yaoko Co. Ltd. | 1,800 | 100,014 | ||||||
Yokohama Reito Co. Ltd.(a) | 51,400 | 521,398 | ||||||
Zur Rose Group AG* | 304 | 35,808 | ||||||
17,175,076 | ||||||||
Food Products – 2.5% | ||||||||
a2 Milk Co. Ltd.* | 45,810 | 392,174 | ||||||
AAK AB | 834 | 73,928 | ||||||
Agrana Beteiligungs AG | 2,754 | 322,756 | ||||||
Ajinomoto Co., Inc. | 14,200 | 260,317 | ||||||
Ariake Japan Co. Ltd.(a) | 800 | 68,723 | ||||||
Aryzta AG* (a) | 1,844 | 39,156 | ||||||
Associated British Foods plc | 11,826 | 440,442 | ||||||
Austevoll Seafood ASA | 8,913 | 107,698 | ||||||
Bakkafrost P/F | 2,188 | 125,909 | ||||||
Barry Callebaut AG (Registered) | 38 | 68,599 | ||||||
Bega Cheese Ltd.(a) | 7,095 | 38,079 | ||||||
Bell Food Group AG (Registered) | 972 | 382,948 | ||||||
Bonduelle SCA | 13,296 | 592,770 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Bourbon Corp. | 16,200 | $ | 430,816 | |||||
Bumitama Agri Ltd. | 282,300 | 153,511 | ||||||
Calbee, Inc. | 3,200 | 107,910 | ||||||
Chocoladefabriken Lindt & Spruengli AG* | 43 | 277,139 | ||||||
Chocoladefabriken Lindt & Spruengli AG (Registered)* | 5 | 380,847 | ||||||
Cloetta AB, Class B | 13,724 | 49,320 | ||||||
Costa Group Holdings Ltd. | 13,860 | 75,956 | ||||||
CP Pokphand Co. Ltd. | 317,384 | 28,712 | ||||||
Cranswick plc | 2,274 | 91,269 | ||||||
Dairy Crest Group plc(a) | 7,396 | 55,264 | ||||||
Danone SA(a) | 19,602 | 1,588,902 | ||||||
DyDo Group Holdings, Inc. | 500 | 31,117 | ||||||
Ebro Foods SA | 4,297 | 103,833 | ||||||
Emmi AG (Registered)* | 41 | 33,259 | ||||||
Ezaki Glico Co. Ltd. | 1,300 | 70,212 | ||||||
ForFarmers NV | 16,966 | 238,600 | ||||||
Freedom Foods Group Ltd. | 4,139 | 18,090 | ||||||
Fuji Oil Holdings, Inc. | 3,400 | 109,216 | ||||||
Fujicco Co. Ltd. | 2,000 | 46,059 | ||||||
Fujiya Co. Ltd. | 400 | 9,961 | ||||||
Glanbia plc | 2,193 | 37,094 | ||||||
Golden Agri-Resources Ltd.(a) | 219,400 | 57,168 | ||||||
GrainCorp Ltd., Class A(a) | 23,230 | 155,888 | ||||||
Greencore Group plc | 630,990 | 1,379,687 | ||||||
Grieg Seafood ASA | 51,840 | 558,126 | ||||||
House Foods Group, Inc. | 2,400 | 84,551 | ||||||
Inghams Group Ltd.(a) | 168,723 | 477,602 | ||||||
Itoham Yonekyu Holdings, Inc. | 6,500 | 59,104 | ||||||
Japfa Ltd. | 344,200 | 124,781 | ||||||
Kagome Co. Ltd. | 900 | 32,447 | ||||||
Kameda Seika Co. Ltd. | 900 | 44,332 | ||||||
Kerry Group plc, Class A | 5,184 | 529,250 | ||||||
Kewpie Corp. | 2,600 | 60,613 | ||||||
Kikkoman Corp. | 4,000 | 173,452 | ||||||
Kotobuki Spirits Co. Ltd. | 1,000 | 47,613 | ||||||
KWS Saat SE | 60 | 21,711 | ||||||
LDC SA | 2,916 | 512,613 | ||||||
Leroy Seafood Group ASA | 18,318 | 134,862 | ||||||
Lotus Bakeries | 13 | 36,911 | ||||||
Maple Leaf Foods, Inc. | 1,870 | 45,147 | ||||||
Marine Harvest ASA | 15,941 | 347,530 |
See Accompanying Notes to the Financial Statements.
102 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Marudai Food Co. Ltd. | 112,000 | $ | 551,684 | |||||
Maruha Nichiro Corp. | 4,400 | 148,175 | ||||||
Megmilk Snow Brand Co. Ltd. | 1,014 | 30,534 | ||||||
MEIJI Holdings Co. Ltd. | 4,100 | 328,974 | ||||||
Mitsui Sugar Co. Ltd. | 3,800 | 152,104 | ||||||
Morinaga & Co. Ltd. | 1,100 | 53,580 | ||||||
Morinaga Milk Industry Co. Ltd. | 1,200 | 52,803 | ||||||
Naturex* | 590 | 95,805 | ||||||
Nestle SA (Registered) | 98,172 | 7,634,388 | ||||||
NH Foods Ltd. | 4,000 | 174,914 | ||||||
Nichirei Corp. | 3,500 | 101,234 | ||||||
Nippon Flour Mills Co. Ltd. | 64,400 | 1,051,705 | ||||||
Nippon Suisan Kaisha Ltd. | 19,700 | 106,939 | ||||||
Nisshin Oillio Group Ltd. (The) | 1,400 | 40,302 | ||||||
Nisshin Seifun Group, Inc. | 7,090 | 155,050 | ||||||
Nissin Foods Holdings Co. Ltd. | 1,500 | 110,350 | ||||||
Norway Royal Salmon ASA | 10,652 | 252,900 | ||||||
Origin Enterprises plc | 18,224 | 117,577 | ||||||
Orkla ASA | 19,304 | 179,134 | ||||||
Premium Brands Holdings Corp. | 1,100 | 103,492 | ||||||
Prima Meat Packers Ltd. | 28,000 | 171,186 | ||||||
PureCircle Ltd.* | 1,672 | 8,843 | ||||||
Riken Vitamin Co. Ltd. | 800 | 30,121 | ||||||
S Foods, Inc. | 4,500 | 189,376 | ||||||
S&B Foods, Inc. | 3,900 | 384,208 | ||||||
Sakata Seed Corp. | 2,800 | 102,737 | ||||||
Salmar ASA | 3,732 | 174,695 | ||||||
Saputo, Inc. | 8,262 | 268,300 | ||||||
Savencia SA | 3,726 | 386,250 | ||||||
Schouw & Co. A/S | 1,156 | 114,069 | ||||||
Showa Sangyo Co. Ltd. | 7,000 | 185,131 | ||||||
Strauss Group Ltd. | 952 | 19,641 | ||||||
Suedzucker AG | 5,733 | 95,518 | ||||||
Synlait Milk Ltd.* | 46,793 | 329,703 | ||||||
Tassal Group Ltd.(a) | 117,957 | 345,475 | ||||||
Tate & Lyle plc | 34,506 | 273,089 | ||||||
Toyo Suisan Kaisha Ltd. | 2,800 | 110,286 | ||||||
Vilmorin & Cie SA | 4,860 | 344,091 | ||||||
Viscofan SA | 825 | 54,822 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Vitasoy International Holdings Ltd. | 16,000 | $ | 42,506 | |||||
Wessanen | 3,410 | 69,009 | ||||||
WH Group Ltd.(c) | 414,500 | 432,549 | ||||||
Wilmar International Ltd. | 129,600 | 319,094 | ||||||
Yakult Honsha Co. Ltd. | 4,300 | 306,511 | ||||||
Yamazaki Baking Co. Ltd. | 2,900 | 63,552 | ||||||
27,996,380 | ||||||||
Gas Utilities – 0.3% | ||||||||
APA Group | 31,143 | 196,294 | ||||||
Beijing Gas Blue Sky Holdings Ltd.* | 608,000 | 39,509 | ||||||
Gas Natural SDG SA | 21,222 | 536,141 | ||||||
Hong Kong & China Gas Co. Ltd. | 228,470 | 478,584 | ||||||
Italgas SpA | 22,372 | 145,042 | ||||||
Nippon Gas Co. Ltd. | 2,000 | 98,698 | ||||||
Osaka Gas Co. Ltd. | 3,600 | 77,445 | ||||||
Rubis SCA | 4,212 | 328,237 | ||||||
Saibu Gas Co. Ltd. | 3,300 | 89,146 | ||||||
Shizuoka Gas Co. Ltd. | 67,000 | 606,169 | ||||||
Superior Plus Corp. | 18,859 | 183,007 | ||||||
Toho Gas Co. Ltd. | 2,000 | 60,681 | ||||||
Tokyo Gas Co. Ltd. | 7,700 | 206,318 | ||||||
Valener, Inc.(a) | 83 | 1,303 | ||||||
3,046,574 | ||||||||
Health Care Equipment & Supplies – 0.8% | ||||||||
Advanced Medical Solutions Group plc | 4,180 | 18,164 | ||||||
Ambu A/S, Class B | 8,875 | 206,668 | ||||||
Ansell Ltd. | 6,098 | 120,048 | ||||||
Asahi Intecc Co. Ltd. | 5,600 | 196,262 | ||||||
BioMerieux | 825 | 65,388 | ||||||
Carl Zeiss Meditec AG | 715 | 48,635 | ||||||
Cochlear Ltd. | 1,232 | 180,471 | ||||||
Coloplast A/S, Class B | 3,969 | 337,259 | ||||||
CYBERDYNE, Inc.* (a) | 6,300 | 80,661 | ||||||
DiaSorin SpA | 869 | 82,262 | ||||||
Draegerwerk AG & Co. KGaA | 536 | 33,027 | ||||||
Draegerwerk AG & Co. KGaA (Preference) | 876 | 64,773 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 103 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Eiken Chemical Co. Ltd. | 1,600 | $ | 37,841 | |||||
Elekta AB, Class B | 6,069 | 69,041 | ||||||
Essilor International Cie Generale d’Optique SA | 6,156 | 840,830 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 12,815 | 115,125 | ||||||
Fukuda Denshi Co. Ltd. | 8,863 | 635,010 | ||||||
Getinge AB, Class B | 8,992 | 83,986 | ||||||
GN Store Nord A/S | 3,824 | 134,812 | ||||||
Guerbet | 343 | 21,757 | ||||||
Hogy Medical Co. Ltd. | 1,200 | 50,007 | ||||||
Hoya Corp. | 10,900 | 583,923 | ||||||
Ion Beam Applications(a) | 1,849 | 37,955 | ||||||
Koninklijke Philips NV | 30,294 | 1,288,729 | ||||||
LivaNova plc* (a) | 1,200 | 106,536 | ||||||
Mani, Inc. | 1,300 | 52,867 | ||||||
Mazor Robotics Ltd.* | 2,094 | 56,920 | ||||||
Menicon Co. Ltd. | 1,600 | 41,877 | ||||||
Nagaileben Co. Ltd. | 1,500 | 39,712 | ||||||
Nakanishi, Inc. | 5,100 | 106,544 | ||||||
Nanosonics Ltd.* (a) | 26,752 | 48,667 | ||||||
Nihon Kohden Corp. | 2,300 | 65,894 | ||||||
Nikkiso Co. Ltd. | 65,900 | 750,992 | ||||||
Nipro Corp.(a) | 5,200 | 75,036 | ||||||
Olympus Corp. | 9,200 | 343,450 | ||||||
Paramount Bed Holdings Co. Ltd. | 800 | 39,772 | ||||||
Sartorius AG (Preference) | 1,400 | 216,171 | ||||||
Sartorius Stedim Biotech | 770 | 72,006 | ||||||
Sectra AB, Class B* | 1,654 | 36,739 | ||||||
Smith & Nephew plc | 26,649 | 512,402 | ||||||
Sonova Holding AG (Registered) | 1,539 | 255,282 | ||||||
Straumann Holding AG (Registered) | 219 | 149,886 | ||||||
Sysmex Corp. | 4,200 | 371,542 | ||||||
Terumo Corp. | 9,600 | 543,934 | ||||||
William Demant Holding A/S* | 2,796 | 109,362 | ||||||
9,328,225 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – 0.7% | ||||||||
Alfresa Holdings Corp. | 12,300 | $ | 271,572 | |||||
Ambea AB* (c) | 5,396 | 39,870 | ||||||
Amplifon SpA | 3,837 | 71,856 | ||||||
As One Corp. | 700 | 47,594 | ||||||
Attendo AB(c) | 3,465 | 35,292 | ||||||
Australian Pharmaceutical Industries Ltd.(a) | 373,815 | 382,346 | ||||||
BML, Inc. | 3,300 | 83,627 | ||||||
Capio AB(c) | 88,064 | 398,872 | ||||||
Chartwell Retirement Residences | 5,794 | 66,936 | ||||||
CVS Group plc | 1,796 | 24,391 | ||||||
EBOS Group Ltd. | 1,980 | 24,805 | ||||||
Extendicare, Inc.(a) | 11,030 | 71,672 | ||||||
Fagron | 8,568 | 148,032 | ||||||
Fresenius Medical Care AG & Co. KGaA | 7,290 | 742,319 | ||||||
Fresenius SE & Co. KGaA | 14,175 | 1,084,776 | ||||||
Healthscope Ltd. | 71,257 | 130,706 | ||||||
Japan Lifeline Co. Ltd.(a) | 3,000 | 88,554 | ||||||
Lifco AB, Class B | 1,352 | 49,329 | ||||||
Mediclinic International plc | 18,944 | 175,081 | ||||||
Medipal Holdings Corp. | 7,100 | 152,544 | ||||||
Metlifecare Ltd. | 155,277 | 632,379 | ||||||
Miraca Holdings, Inc. | 1,300 | 50,729 | ||||||
NichiiGakkan Co. Ltd. | 9,200 | 95,090 | ||||||
NMC Health plc | 1,466 | 72,045 | ||||||
Orpea | 1,116 | 143,397 | ||||||
Primary Health Care Ltd.(a) | 293,382 | 843,760 | ||||||
Raffles Medical Group Ltd.(a) | 67,643 | 58,751 | ||||||
Ramsay Health Care Ltd. | 4,212 | 205,677 | ||||||
Regis Healthcare Ltd.(a) | 21,356 | 61,742 | ||||||
RHOEN-KLINIKUM AG | 2,259 | 73,965 | ||||||
Ryman Healthcare Ltd. | 13,156 | 98,259 | ||||||
Ship Healthcare Holdings, Inc. | 3,300 | 114,750 | ||||||
Sigma Healthcare Ltd.(a) | 984,393 | 575,878 | ||||||
Sonic Healthcare Ltd. | 10,375 | 184,982 | ||||||
Spire Healthcare Group plc(c) | 23,923 | 75,127 | ||||||
Summerset Group Holdings Ltd. | 11,425 | 55,545 | ||||||
Suzuken Co. Ltd. | 3,380 | 145,486 | ||||||
Toho Holdings Co. Ltd.(a) | 4,200 | 102,711 | ||||||
Town Health International Medical Group Ltd.(b) | 398,000 | 34,991 |
See Accompanying Notes to the Financial Statements.
104 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Providers & Services – (continued) | ||||||||
UDG Healthcare plc | 17,005 | $ | 214,310 | |||||
7,929,748 | ||||||||
Health Care Technology – 0.1% | ||||||||
AGFA-Gevaert NV* | 120,687 | 432,193 | ||||||
CompuGroup Medical SE | 624 | 32,599 | ||||||
M3, Inc. | 5,000 | 189,399 | ||||||
RaySearch Laboratories AB* | 2,290 | 34,286 | ||||||
688,477 | ||||||||
Hotels, Restaurants & Leisure – 1.8% | ||||||||
Accor SA | 8,262 | 467,863 | ||||||
Aeon Fantasy Co. Ltd. | 500 | 26,319 | ||||||
Ainsworth Game Technology Ltd.(a) | 72,712 | 104,833 | ||||||
Arcland Service Holdings Co. Ltd. | 1,400 | 29,964 | ||||||
Ardent Leisure Group | 43,861 | 62,575 | ||||||
Aristocrat Leisure Ltd. | 17,901 | 362,407 | ||||||
Atom Corp. | 5,800 | 52,421 | ||||||
Autogrill SpA | 6,257 | 80,133 | ||||||
Basic-Fit NV* (a) (c) | 3,008 | 90,675 | ||||||
Betsson AB* | 14,516 | 103,736 | ||||||
Carnival plc | 6,561 | 426,988 | ||||||
Cherry AB, Class B* (a) | 5,700 | 46,419 | ||||||
Colowide Co. Ltd. | 3,500 | 89,047 | ||||||
Compass Group plc | 45,117 | 969,414 | ||||||
Corporate Travel Management Ltd.(a) | 3,366 | 63,216 | ||||||
Create Restaurants Holdings, Inc. | 2,200 | 27,805 | ||||||
Crown Resorts Ltd. | 11,661 | 114,078 | ||||||
Dalata Hotel Group plc* | 16,255 | 129,619 | ||||||
Domino’s Pizza Enterprises Ltd. | 1,454 | 46,284 | ||||||
Domino’s Pizza Group plc | 41,025 | 205,285 | ||||||
Doutor Nichires Holdings Co. Ltd. | 2,700 | 56,455 | ||||||
EI Group plc* | 432,702 | 767,625 | ||||||
Evolution Gaming Group AB(a) (c) | 1,265 | 79,867 | ||||||
Flight Centre Travel Group Ltd.(a) | 3,119 | 131,610 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Fuji Kyuko Co. Ltd. | 1,000 | $ | 27,827 | |||||
Galaxy Entertainment Group Ltd. | 67,000 | 592,463 | ||||||
Genting Singapore plc | 144,000 | 127,246 | ||||||
GL Ltd. | 310,200 | 189,768 | ||||||
Great Canadian Gaming Corp.* | 2,860 | 81,743 | ||||||
Greene King plc(a) | 278,559 | 2,098,693 | ||||||
GVC Holdings plc | 26,534 | 326,178 | ||||||
Hiday Hidaka Corp. | 1,992 | 51,973 | ||||||
HIS Co. Ltd. | 800 | 29,280 | ||||||
Ichibanya Co. Ltd. | 1,000 | 41,718 | ||||||
InterContinental Hotels Group plc | 6,987 | 441,624 | ||||||
J D Wetherspoon plc | 3,795 | 60,843 | ||||||
Kindred Group plc, SDR | 4,675 | 60,663 | ||||||
Kisoji Co. Ltd. | 1,700 | 44,106 | ||||||
KOMEDA Holdings Co. Ltd. | 1,200 | 24,181 | ||||||
Kyoritsu Maintenance Co. Ltd. | 1,600 | 75,595 | ||||||
LeoVegas AB(c) | 988 | 9,696 | ||||||
Macau Legend Development Ltd.* | 456,000 | 72,628 | ||||||
Mandarin Oriental International Ltd. | 8,000 | 19,200 | ||||||
Mantra Group Ltd. | 82,620 | 246,345 | ||||||
Marston’s plc | 507,037 | 753,538 | ||||||
McDonald’s Holdings Co. Japan Ltd. | 1,100 | 51,469 | ||||||
Melco International Development Ltd. | 21,000 | 78,533 | ||||||
Melia Hotels International SA | 6,157 | 91,796 | ||||||
Merlin Entertainments plc(c) | 5,832 | 29,544 | ||||||
Millennium & Copthorne Hotels plc | 6,688 | 52,507 | ||||||
Mitchells & Butlers plc(a) | 195,571 | 759,623 | ||||||
MOS Food Services, Inc. | 2,100 | 63,619 | ||||||
MTY Food Group, Inc. | 760 | 27,330 | ||||||
NagaCorp Ltd. | 406,000 | 424,196 | ||||||
NH Hotel Group SA | 12,299 | 95,102 | ||||||
Ohsho Food Service Corp. | 1,504 | 75,595 | ||||||
Oriental Land Co. Ltd. | 8,100 | 807,964 | ||||||
Paddy Power Betfair plc | 2,685 | 265,530 | ||||||
Pandox AB | 5,709 | 96,641 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 105 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Parques Reunidos Servicios Centrales SAU(c) | 7,480 | $ | 123,089 | |||||
Playtech plc | 9,506 | 106,133 | ||||||
Plenus Co. Ltd. | 1,000 | 17,245 | ||||||
Rank Group plc | 179,577 | 432,846 | ||||||
Resorttrust, Inc. | 1,800 | 37,406 | ||||||
Restaurant Brands International, Inc. | 4,318 | 235,344 | ||||||
Restaurant Brands International, Inc.* | 3,458 | 188,471 | ||||||
Restaurant Brands New Zealand Ltd. | 6,220 | 31,467 | ||||||
Retail Food Group Ltd.(a) | 111,474 | 77,414 | ||||||
Rezidor Hotel Group AB* | 48,502 | 139,798 | ||||||
Ringer Hut Co. Ltd. | 1,700 | 41,325 | ||||||
Round One Corp. | 2,700 | 39,282 | ||||||
Royal Holdings Co. Ltd. | 1,600 | 43,529 | ||||||
Saizeriya Co. Ltd. | 1,300 | 30,093 | ||||||
Sands China Ltd. | 70,000 | 408,053 | ||||||
Scandic Hotels Group AB(c) | 54,308 | 536,061 | ||||||
Shangri-La Asia Ltd. | 32,000 | 62,873 | ||||||
SJM Holdings Ltd. | 76,000 | 76,695 | ||||||
SkiStar AB(a) | 1,414 | 29,273 | ||||||
Skylark Co. Ltd. | 3,700 | 54,439 | ||||||
Sodexo SA | 2,916 | 289,247 | ||||||
SSP Group plc | 28,935 | 259,925 | ||||||
St Marc Holdings Co. Ltd. | 1,400 | 39,662 | ||||||
Star Entertainment Grp Ltd. (The) | 22,034 | 87,819 | ||||||
Tabcorp Holdings Ltd.(a) | 90,963 | 300,746 | ||||||
Thomas Cook Group plc | 573,399 | 976,157 | ||||||
Tokyo Dome Corp. | 88,000 | 855,673 | ||||||
Toridoll Holdings Corp. | 1,600 | 53,735 | ||||||
Tosho Co. Ltd. | 800 | 29,427 | ||||||
TUI AG, DI | 27,483 | 622,883 | ||||||
Whitbread plc | 6,156 | 362,985 | ||||||
William Hill plc | 46,948 | 189,336 | ||||||
Wynn Macau Ltd. | 18,000 | 67,314 | ||||||
Yoshinoya Holdings Co. Ltd. | 4,900 | 91,037 | ||||||
Zensho Holdings Co. Ltd. | 3,600 | 83,827 | ||||||
19,850,004 |
Investments | Shares | Value | ||||||
Household Durables – 1.8% | ||||||||
Alpine Electronics, Inc. | 3,600 | $ | 68,299 | |||||
Barratt Developments plc | 52,650 | 404,648 | ||||||
Bellway plc | 6,885 | 314,458 | ||||||
Berkeley Group Holdings plc | 7,128 | 399,779 | ||||||
Bonava AB, Class B | 9,123 | 111,129 | ||||||
Bovis Homes Group plc | 106,779 | 1,817,075 | ||||||
Breville Group Ltd. | 3,137 | 26,971 | ||||||
Cairn Homes plc* | 33,544 | 72,788 | ||||||
Casio Computer Co. Ltd.(a) | 10,000 | 149,235 | ||||||
Clarion Co. Ltd. | 94,000 | 264,583 | ||||||
Countryside Properties plc(c) | 326,430 | 1,614,993 | ||||||
Crest Nicholson Holdings plc | 201,703 | 1,352,962 | ||||||
De’ Longhi SpA | 1,687 | 50,548 | ||||||
Dorel Industries, Inc., Class B | 16,933 | 366,544 | ||||||
Duni AB | 3,648 | 49,653 | ||||||
Ekornes ASA | 22,194 | 308,623 | ||||||
Electra Consumer Products 1970 Ltd. | 8,196 | 118,433 | ||||||
Electrolux AB, Series B | 6,308 | 166,881 | ||||||
Fiskars OYJ Abp | 1,716 | 42,709 | ||||||
Foster Electric Co. Ltd. | 21,437 | 504,066 | ||||||
Fujitsu General Ltd.(a) | 2,000 | 32,716 | ||||||
Haseko Corp. | 18,900 | 297,944 | ||||||
Hunter Douglas NV | 76 | 5,803 | ||||||
Husqvarna AB, Class B | 10,285 | 99,333 | ||||||
Iida Group Holdings Co. Ltd. | 15,400 | 301,315 | ||||||
JM AB(a) | 6,216 | 123,637 | ||||||
Kaufman & Broad SA | 11,097 | 585,367 | ||||||
Lisi Group Holdings Ltd.* | 152,000 | 23,241 | ||||||
Man Wah Holdings Ltd.(a) | 29,600 | 22,026 | ||||||
McCarthy & Stone plc(c) | 479,763 | 894,725 | ||||||
Nagawa Co. Ltd. | 500 | 21,407 | ||||||
Neinor Homes SA* (c) | 3,724 | 72,259 | ||||||
Nikon Corp. | 16,600 | 289,448 | ||||||
Nobia AB(a) | 130,086 | 1,028,130 | ||||||
Panasonic Corp. | 81,200 | 1,211,043 | ||||||
Persimmon plc | 14,823 | 554,307 | ||||||
Pioneer Corp.* (a) | 53,600 | 83,762 | ||||||
Pressance Corp. | 21,200 | 324,515 | ||||||
Redrow plc | 26,536 | 229,347 | ||||||
Rinnai Corp. | 900 | 89,568 | ||||||
Sangetsu Corp. | 2,256 | 46,615 | ||||||
SEB SA | 744 | 142,835 |
See Accompanying Notes to the Financial Statements.
106 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Household Durables – (continued) | ||||||||
Sekisui Chemical Co. Ltd. | 20,300 | $ | 359,899 | |||||
Sekisui House Ltd. | 35,800 | 655,802 | ||||||
Sharp Corp.(a) | 4,600 | 135,152 | ||||||
Sony Corp. | 40,500 | 1,998,629 | ||||||
Starts Corp., Inc. | 5,200 | 143,751 | ||||||
Steinhoff International Holdings NV* (a) | 174,420 | 26,300 | ||||||
Sumitomo Forestry Co. Ltd. | 8,000 | 132,840 | ||||||
Tamron Co. Ltd. | 6,800 | 138,082 | ||||||
Taylor Wimpey plc | 172,206 | 454,808 | ||||||
Techtronic Industries Co. Ltd. | 51,500 | 304,476 | ||||||
Token Corp. | 1,710 | 163,616 | ||||||
TomTom NV* | 12,278 | 121,433 | ||||||
Zojirushi Corp.(a) | 38,900 | 523,288 | ||||||
19,841,796 | ||||||||
Household Products – 0.4% | ||||||||
Earth Corp. | 600 | 31,528 | ||||||
Essity AB, Class B | 20,574 | 524,763 | ||||||
Henkel AG & Co. KGaA | 3,159 | 376,900 | ||||||
Henkel AG & Co. KGaA (Preference) | 6,156 | 783,931 | ||||||
Lion Corp. | 7,900 | 170,526 | ||||||
Pigeon Corp. | 2,400 | 112,515 | ||||||
PZ Cussons plc | 29,564 | 100,253 | ||||||
Reckitt Benckiser Group plc | 19,639 | 1,542,378 | ||||||
Unicharm Corp. | 17,000 | 477,725 | ||||||
4,120,519 | ||||||||
Independent Power and Renewable Electricity Producers – 0.2% | ||||||||
Algonquin Power & Utilities Corp.(a) | 13,354 | 130,212 | ||||||
Boralex, Inc., Class A | 2,035 | 36,431 | ||||||
Capital Power Corp. | 471 | 8,957 | ||||||
Drax Group plc | 26,399 | 114,900 | ||||||
EDP Renovaveis SA | 6,490 | 62,416 | ||||||
Electric Power Development Co. Ltd. | 8,300 | 225,884 | ||||||
ERG SpA | 2,090 | 50,250 | ||||||
GCL New Energy Holdings Ltd.* (a) | 6,480,000 | 363,291 |
Investments | Shares | Value | ||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
Infigen Energy* | 127,984 | $ | 66,660 | |||||
Innergex Renewable Energy, Inc. | 12,871 | 135,944 | ||||||
Meridian Energy Ltd. | 28,875 | 59,815 | ||||||
Northland Power, Inc. | 2,116 | 38,212 | ||||||
Saeta Yield SA | 2,970 | 44,209 | ||||||
Scatec Solar ASA(a) (c) | 988 | 6,167 | ||||||
TransAlta Corp. | 4,615 | 24,336 | ||||||
Uniper SE | 11,340 | 351,704 | ||||||
1,719,388 | ||||||||
Industrial Conglomerates – 1.0% | ||||||||
CIR-Compagnie Industriali Riunite SpA | 218,457 | 287,694 | ||||||
CK Hutchison Holdings Ltd. | 141,856 | 1,682,769 | ||||||
Daetwyler Holding AG | 334 | 64,107 | ||||||
DCC plc | 2,754 | 265,526 | ||||||
Hopewell Holdings Ltd. | 8,000 | 28,490 | ||||||
Indus Holding AG | 990 | 71,049 | ||||||
Italmobiliare SpA | 360 | 9,765 | ||||||
Jardine Matheson Holdings Ltd. | 16,300 | 989,899 | ||||||
Jardine Strategic Holdings Ltd. | 9,000 | 342,000 | ||||||
Keppel Corp. Ltd. | 30,500 | 188,660 | ||||||
Nisshinbo Holdings, Inc. | 11,200 | 158,340 | ||||||
Nolato AB, Class B | 710 | 53,597 | ||||||
NWS Holdings Ltd. | 53,401 | 105,601 | ||||||
Rheinmetall AG | 1,789 | 234,844 | ||||||
Seibu Holdings, Inc. | 2,000 | 33,795 | ||||||
Sembcorp Industries Ltd. | 73,900 | 171,348 | ||||||
Shun Tak Holdings Ltd. | 1,404,000 | 581,404 | ||||||
Siemens AG (Registered) | 25,353 | 3,235,911 | ||||||
Smiths Group plc | 16,929 | 372,492 | ||||||
TOKAI Holdings Corp. | 102,395 | 1,040,560 | ||||||
Toshiba Corp.* | 324,000 | 867,553 | ||||||
10,785,404 | ||||||||
Insurance – 5.0% | ||||||||
Admiral Group plc | 6,163 | 169,178 | ||||||
Aegon NV | 81,405 | 599,170 | ||||||
Ageas | 10,611 | 569,858 | ||||||
AIA Group Ltd. | 391,400 | 3,525,879 | ||||||
Allianz SE (Registered) | 23,733 | 5,633,335 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 107 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
ASR Nederland NV | 9,079 | $ | 429,556 | |||||
Assicurazioni Generali SpA | 71,928 | 1,454,763 | ||||||
AUB Group Ltd. | 2,255 | 23,899 | ||||||
Aviva plc | 219,672 | 1,600,570 | ||||||
AXA SA(a) | 103,761 | 2,973,635 | ||||||
Baloise Holding AG (Registered) | 2,592 | 412,929 | ||||||
Beazley plc | 42,363 | 345,132 | ||||||
CBL Corp. Ltd.(b) | 102,937 | 229,918 | ||||||
Clal Insurance Enterprises Holdings Ltd.* | 18,711 | 294,246 | ||||||
CNP Assurances* (a) | 7,687 | 197,265 | ||||||
Coface SA | 65,956 | 838,318 | ||||||
Dai-ichi Life Holdings, Inc. | 67,200 | 1,335,095 | ||||||
Direct Line Insurance Group plc | 78,489 | 404,644 | ||||||
esure Group plc | 8,588 | 26,685 | ||||||
Fairfax Financial Holdings Ltd. | 1,539 | 853,362 | ||||||
Gjensidige Forsikring ASA | 3,780 | 60,019 | ||||||
Great Eastern Holdings Ltd. | 6,800 | 159,568 | ||||||
Great-West Lifeco, Inc. | 15,633 | 417,425 | ||||||
Grupo Catalana Occidente SA | 2,102 | 92,824 | ||||||
Hannover Rueck SE | 3,159 | 445,028 | ||||||
Harel Insurance Investments & Financial Services Ltd. | 19,063 | 138,870 | ||||||
Hastings Group Holdings plc(c) | 11,496 | 43,702 | ||||||
Helvetia Holding AG (Registered) | 253 | 150,921 | ||||||
Hiscox Ltd. | 14,904 | 305,662 | ||||||
IDI Insurance Co. Ltd. | 1,910 | 115,357 | ||||||
Industrial Alliance Insurance & Financial Services, Inc. | 5,022 | 211,269 | ||||||
Insurance Australia Group Ltd. | 63,990 | 381,593 | ||||||
Intact Financial Corp. | 3,888 | 296,919 | ||||||
Japan Post Holdings Co. Ltd. | 10,800 | 131,268 | ||||||
Japan Post Insurance Co. Ltd.(a) | 7,600 | 186,970 | ||||||
Jardine Lloyd Thompson Group plc | 3,135 | 52,766 | ||||||
Just Group plc | 490,374 | 953,688 | ||||||
Lancashire Holdings Ltd.(a) | 33,534 | 275,281 |
Investments | Shares | Value | ||||||
Insurance – (continued) | ||||||||
Legal & General Group plc | 262,440 | $ | 975,974 | |||||
Manulife Financial Corp. | 106,191 | 2,007,105 | ||||||
Mapfre SA | 6,728 | 23,443 | ||||||
Medibank Pvt Ltd. | 91,044 | 201,363 | ||||||
Menora Mivtachim Holdings Ltd. | 8,171 | 91,705 | ||||||
Migdal Insurance & Financial Holding Ltd.* | 180,880 | 177,617 | ||||||
MS&AD Insurance Group Holdings, Inc. | 21,400 | 718,125 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) | 8,343 | 1,914,698 | ||||||
nib holdings Ltd.(a) | 19,811 | 83,296 | ||||||
NN Group NV | 19,197 | 920,563 | ||||||
Old Mutual plc | 272,160 | 943,147 | ||||||
Phoenix Group Holdings | 30,780 | 333,647 | ||||||
Phoenix Holdings Ltd. (The)* | 21,712 | 111,520 | ||||||
Poste Italiane SpA(c) | 2,720 | 26,639 | ||||||
Power Corp. of Canada | 18,549 | 441,460 | ||||||
Power Financial Corp. | 12,555 | 326,227 | ||||||
Prudential plc | 141,750 | 3,659,762 | ||||||
QBE Insurance Group Ltd. | 79,866 | 600,457 | ||||||
RSA Insurance Group plc | 40,014 | 362,315 | ||||||
Saga plc | 73,340 | 137,279 | ||||||
Sampo OYJ, Class A | 15,636 | 845,391 | ||||||
SCOR SE(a) | 8,991 | 365,537 | ||||||
Societa Cattolica di Assicurazioni SC | 129,681 | 1,385,056 | ||||||
Sompo Holdings, Inc. | 20,000 | 838,931 | ||||||
Sony Financial Holdings, Inc. | 8,500 | 155,280 | ||||||
Steadfast Group Ltd.(a) | 33,550 | 69,644 | ||||||
Storebrand ASA | 17,930 | 153,761 | ||||||
Sun Life Financial, Inc. | 33,534 | 1,386,405 | ||||||
Suncorp Group Ltd. | 51,435 | 544,336 | ||||||
Swiss Life Holding AG (Registered)* | 1,701 | 598,847 | ||||||
Swiss Re AG | 18,873 | 1,804,746 | ||||||
T&D Holdings, Inc. | 32,500 | 552,136 | ||||||
Talanx AG | 1,827 | 82,512 | ||||||
Tokio Marine Holdings, Inc. | 42,200 | 1,994,594 | ||||||
Topdanmark A/S | 1,650 | 77,916 | ||||||
Tryg A/S | 2,365 | 56,185 |
See Accompanying Notes to the Financial Statements.
108 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Unipol Gruppo SpA | 20,166 | $ | 108,422 | |||||
UnipolSai Assicurazioni SpA(a) | 53,194 | 143,320 | ||||||
UNIQA Insurance Group AG | 4,884 | 58,595 | ||||||
Vittoria Assicurazioni SpA | 22,437 | 318,795 | ||||||
Wuestenrot & Wuerttembergische AG | 31,509 | 761,383 | ||||||
Zurich Insurance Group AG* | 8,181 | 2,624,796 | ||||||
55,319,497 | ||||||||
Internet & Direct Marketing Retail – 0.3% | ||||||||
ASKUL Corp.(a) | 500 | 15,741 | ||||||
ASOS plc* | 1,589 | 127,946 | ||||||
Belluna Co. Ltd. | 48,700 | 566,998 | ||||||
boohoo.com plc* | 21,681 | 54,738 | ||||||
Dustin Group AB(a) (c) | 49,248 | 414,014 | ||||||
N Brown Group plc | 124,659 | 351,296 | ||||||
Ocado Group plc* (a) | 40,281 | 298,710 | ||||||
Rakuten, Inc. | 34,100 | 243,133 | ||||||
Start Today Co. Ltd. | 4,000 | 115,513 | ||||||
Takkt AG | 29,808 | 617,280 | ||||||
Trade Me Group Ltd. | 14,586 | 47,790 | ||||||
Webjet Ltd.(a) | 2,485 | 20,578 | ||||||
Yoox Net-A-Porter Group SpA* | 2,041 | 93,434 | ||||||
Zalando SE* (c) | 2,863 | 147,876 | ||||||
zooplus AG* | 203 | 42,186 | ||||||
3,157,233 | ||||||||
Internet Software & Services – 0.2% | ||||||||
Auto Trader Group plc(c) | 15,582 | 75,760 | ||||||
carsales.com Ltd. | 4,036 | 43,688 | ||||||
Delivery Hero AG* (c) | 608 | 29,090 | ||||||
DeNA Co. Ltd.(a) | 4,000 | 76,217 | ||||||
Dip Corp. | 1,400 | 34,007 | ||||||
GMO internet, Inc.(a) | 1,200 | 22,097 | ||||||
Gurunavi, Inc. | 1,800 | 24,625 | ||||||
Infomart Corp. | 5,500 | 50,212 | ||||||
Internet Initiative Japan, Inc. | 2,300 | 43,488 | ||||||
Just Eat plc* | 13,319 | 141,953 | ||||||
Kakaku.com, Inc. | 1,600 | 30,574 | ||||||
Mixi, Inc. | 1,800 | 59,383 |
Investments | Shares | Value | ||||||
Internet Software & Services – (continued) | ||||||||
Moneysupermarket.com Group plc | 30,328 | $ | 125,191 | |||||
NetEnt AB* | 8,842 | 50,870 | ||||||
NEXTDC Ltd.* (a) | 16,647 | 86,580 | ||||||
Rightmove plc | 3,213 | 202,021 | ||||||
Rocket Internet SE* (c) | 1,646 | 48,286 | ||||||
Scout24 AG(c) | 2,584 | 134,058 | ||||||
Shopify, Inc., Class A* | 2,511 | 335,545 | ||||||
SMS Co. Ltd. | 1,600 | 60,681 | ||||||
SUNeVision Holdings Ltd. | 134,000 | 79,735 | ||||||
Takeaway.com NV* (c) | 1,022 | 59,516 | ||||||
United Internet AG (Registered) | 3,446 | 223,911 | ||||||
XING SE | 165 | 51,333 | ||||||
Yahoo Japan Corp.(a) | 44,900 | 184,647 | ||||||
ZPG plc(c) | 13,414 | 66,328 | ||||||
2,339,796 | ||||||||
IT Services – 0.7% | ||||||||
Afterpay Touch Group Ltd.* (a) | 2,660 | 12,027 | ||||||
Alten SA(a) | 1,130 | 112,361 | ||||||
Altran Technologies SA(a) | 7,964 | 123,163 | ||||||
Amadeus IT Group SA | 13,689 | 1,003,920 | ||||||
Atea ASA | 10,346 | 154,200 | ||||||
Atos SE | 3,321 | 448,991 | ||||||
Bechtle AG | 1,192 | 101,172 | ||||||
CANCOM SE | 1,168 | 137,872 | ||||||
Capgemini SE | 5,184 | 714,017 | ||||||
CGI Group, Inc., Class A* | 8,748 | 507,704 | ||||||
Computacenter plc | 9,339 | 163,104 | ||||||
Computershare Ltd. | 17,864 | 229,239 | ||||||
Digital Garage, Inc. | 1,300 | 43,304 | ||||||
DTS Corp. | 2,000 | 72,561 | ||||||
Econocom Group SA/NV(a) | 12,196 | 78,833 | ||||||
Equiniti Group plc(c) | 6,906 | 26,206 | ||||||
FDM Group Holdings plc | 3,850 | 54,089 | ||||||
Formula Systems 1985 Ltd. | 4,749 | 164,068 | ||||||
Fujitsu Ltd. | 104,000 | 632,887 | ||||||
Indra Sistemas SA* | 5,509 | 76,411 | ||||||
Infocom Corp. | 800 | 18,504 | ||||||
Itochu Techno-Solutions Corp. | 2,400 | 49,788 | ||||||
Keywords Studios plc | 1,064 | 26,643 | ||||||
Link Administration Holdings Ltd. | 25,312 | 158,586 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 109 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
Matrix IT Ltd. | 2,464 | $ | 27,147 | |||||
NEC Networks & System Integration Corp. | 28,800 | 754,577 | ||||||
NET One Systems Co. Ltd.(a) | 8,100 | 130,503 | ||||||
Nihon Unisys Ltd. | 2,600 | 54,150 | ||||||
Nomura Research Institute Ltd. | 4,215 | 217,635 | ||||||
NS Solutions Corp. | 800 | 23,176 | ||||||
NTT Data Corp. | 33,700 | 363,101 | ||||||
Obic Co. Ltd. | 1,500 | 125,703 | ||||||
Otsuka Corp. | 3,400 | 158,465 | ||||||
Reply SpA | 880 | 55,659 | ||||||
SCSK Corp. | 900 | 38,574 | ||||||
Softcat plc | 12,119 | 114,842 | ||||||
Sopra Steria Group | 663 | 141,703 | ||||||
Tieto OYJ | 1,598 | 57,419 | ||||||
TIS, Inc. | 2,300 | 91,222 | ||||||
Transcosmos, Inc. | 18,300 | 506,731 | ||||||
Wirecard AG | 2,754 | 376,327 | ||||||
Worldline SA* (c) | 1,045 | 52,750 | ||||||
8,399,334 | ||||||||
Leisure Products – 0.2% | ||||||||
Amer Sports OYJ* | 5,748 | 176,396 | ||||||
Bandai Namco Holdings, Inc. | 9,300 | 315,737 | ||||||
Beneteau SA | 2,358 | 53,446 | ||||||
BRP, Inc. | 3,584 | 145,211 | ||||||
Heiwa Corp. | 8,850 | 175,989 | ||||||
Photo-Me International plc | 19,912 | 43,826 | ||||||
Sega Sammy Holdings, Inc. | 13,400 | 219,935 | ||||||
Shimano, Inc.(a) | 2,100 | 279,041 | ||||||
Spin Master Corp.* (c) | 2,040 | 76,431 | ||||||
Technogym SpA(c) | 4,905 | 59,796 | ||||||
Thule Group AB(c) | 2,805 | 65,192 | ||||||
Tomy Co. Ltd. | 3,700 | 36,383 | ||||||
Trigano SA | 414 | 78,231 | ||||||
Universal Entertainment Corp.* | 300 | 14,256 | ||||||
Yamaha Corp. | 4,600 | 222,381 | ||||||
Yonex Co. Ltd. | 10,000 | 55,837 | ||||||
2,018,088 |
Investments | Shares | Value | ||||||
Life Sciences Tools & Services – 0.1% | ||||||||
Clinigen Group plc | 5,270 | $ | 63,695 | |||||
EPS Holdings, Inc. | 1,900 | 38,721 | ||||||
Eurofins Scientific SE | 283 | 153,112 | ||||||
Evotec AG* | 8,740 | 142,186 | ||||||
Gerresheimer AG | 998 | 81,511 | ||||||
Lonza Group AG (Registered)* | 2,268 | 559,496 | ||||||
MorphoSys AG* | 1,667 | 173,210 | ||||||
QIAGEN NV* | 6,975 | 228,152 | ||||||
Siegfried Holding AG (Registered)* | 165 | 57,589 | ||||||
Tecan Group AG (Registered) | 779 | 172,342 | ||||||
1,670,014 | ||||||||
Machinery – 2.9% | ||||||||
Aalberts Industries NV | 1,980 | 97,699 | ||||||
Ag Growth International, Inc. | 912 | 37,036 | ||||||
Aichi Corp. | 13,500 | 96,230 | ||||||
Aida Engineering Ltd. | 19,300 | 225,938 | ||||||
Alfa Laval AB | 6,238 | 155,326 | ||||||
Alimak Group AB(a) (c) | 1,444 | 21,438 | ||||||
Alstom SA | 3,962 | 180,514 | ||||||
Amada Holdings Co. Ltd. | 18,700 | 225,067 | ||||||
ANDRITZ AG | 1,397 | 75,211 | ||||||
Atlas Copco AB, Class A | 19,521 | 768,292 | ||||||
Atlas Copco AB, Class B | 12,636 | 451,358 | ||||||
ATS Automation Tooling Systems, Inc.* | 1,400 | 19,188 | ||||||
Aumann AG* (c) | 223 | 13,498 | ||||||
Beijer Alma AB | 1,152 | 33,270 | ||||||
Bobst Group SA (Registered) | 200 | 21,477 | ||||||
Bodycote plc | 16,467 | 204,127 | ||||||
Bucher Industries AG (Registered) | 275 | 101,621 | ||||||
Burckhardt Compression Holding AG | 76 | 24,799 | ||||||
Cargotec OYJ, Class B | 1,540 | 78,742 | ||||||
CKD Corp. | 14,100 | 297,269 | ||||||
Concentric AB* | 914 | 14,991 | ||||||
Construcciones y Auxiliar de Ferrocarriles SA(a) | 18,468 | 888,059 | ||||||
Conzzeta AG (Registered) | 55 | 70,340 | ||||||
Daifuku Co. Ltd. | 4,800 | 257,930 | ||||||
Daiwa Industries Ltd. | 1,600 | 17,502 |
See Accompanying Notes to the Financial Statements.
110 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Danieli & C Officine Meccaniche SpA | 3,209 | $ | 88,592 | |||||
Danieli & C Officine Meccaniche SpA (Retirement Savings Plan) | 3,477 | 66,711 | ||||||
Deutz AG | 912 | 8,859 | ||||||
DMG Mori AG | 1,007 | 58,095 | ||||||
DMG Mori Co. Ltd. | 2,000 | 37,597 | ||||||
Duerr AG | 605 | 60,290 | ||||||
Ebara Corp. | 4,100 | 156,993 | ||||||
FANUC Corp. | 5,400 | 1,162,659 | ||||||
Fenner plc | 6,536 | 54,734 | ||||||
Fluidra SA | 912 | 13,223 | ||||||
Fuji Corp.(a) | 4,900 | 88,081 | ||||||
Fujitec Co. Ltd. | 67,800 | 942,415 | ||||||
Furukawa Co. Ltd. | 33,400 | 674,257 | ||||||
GEA Group AG | 5,184 | 202,994 | ||||||
Georg Fischer AG (Registered) | 121 | 151,326 | ||||||
Glory Ltd. | 2,000 | 68,906 | ||||||
Harmonic Drive Systems, Inc. | 1,500 | 71,967 | ||||||
Heidelberger Druckmaschinen AG* | 13,984 | 52,173 | ||||||
Hexagon Composites ASA | 6,156 | 16,137 | ||||||
Hino Motors Ltd. | 7,700 | 94,082 | ||||||
Hirata Corp. | 300 | 28,458 | ||||||
Hitachi Construction Machinery Co. Ltd. | 5,100 | 185,730 | ||||||
Hitachi Zosen Corp.(a) | 150,800 | 819,977 | ||||||
Hoshizaki Corp. | 1,900 | 176,587 | ||||||
IHI Corp. | 2,500 | 82,020 | ||||||
IMA Industria Macchine Automatiche SpA | 495 | 48,204 | ||||||
IMI plc | 5,405 | 81,295 | ||||||
Interpump Group SpA | 3,884 | 123,792 | ||||||
Interroll Holding AG (Registered) | 34 | 56,535 | ||||||
Japan Steel Works Ltd. (The) | 8,700 | 286,223 | ||||||
JTEKT Corp. | 10,600 | 171,944 | ||||||
Jungheinrich AG (Preference) | 4,524 | 191,525 | ||||||
Kawasaki Heavy Industries Ltd. | 8,100 | 271,666 | ||||||
KION Group AG | 2,916 | 244,152 | ||||||
Kitz Corp. | 85,300 | 714,828 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Koenig & Bauer AG | 388 | $ | 31,924 | |||||
Komatsu Ltd. | 28,000 | 959,561 | ||||||
Komax Holding AG (Registered)* | 165 | 45,605 | ||||||
Komori Corp. | 4,400 | 56,093 | ||||||
Kone OYJ, Class B | 12,555 | 625,871 | ||||||
Konecranes OYJ | 2,243 | 92,086 | ||||||
Krones AG | 330 | 42,422 | ||||||
KSB SE & Co. KGaA (Preference) | 810 | 415,923 | ||||||
Kubota Corp. | 36,087 | 609,942 | ||||||
Kurita Water Industries Ltd. | 3,400 | 110,304 | ||||||
Kyokuto Kaihatsu Kogyo Co. Ltd. | 32,400 | 513,722 | ||||||
Makino Milling Machine Co. Ltd. | 95,000 | 900,297 | ||||||
Makita Corp. | 6,600 | 296,751 | ||||||
MAN SE | 432 | 49,846 | ||||||
MAN SE (Preference) | 575 | 66,137 | ||||||
Max Co. Ltd. | 2,000 | 26,045 | ||||||
Meidensha Corp. | 180,000 | 710,624 | ||||||
Metso OYJ | 2,645 | 94,560 | ||||||
MINEBEA MITSUMI, Inc. | 16,211 | 325,479 | ||||||
Mitsubishi Heavy Industries Ltd. | 13,911 | 549,957 | ||||||
Mitsuboshi Belting Ltd. | 3,000 | 34,298 | ||||||
Mitsui E&S Holdings Co. Ltd.(a) | 72,900 | 1,252,474 | ||||||
Miura Co. Ltd. | 3,300 | 100,576 | ||||||
Morgan Advanced Materials plc | 39,032 | 184,399 | ||||||
Morita Holdings Corp. | 9,000 | 176,669 | ||||||
Nabtesco Corp. | 2,300 | 83,130 | ||||||
Nachi-Fujikoshi Corp.(a) | 33,000 | 171,899 | ||||||
New Flyer Industries, Inc. | 1,870 | 86,020 | ||||||
NGK Insulators Ltd. | 600 | 11,032 | ||||||
Nitta Corp. | 3,400 | 129,413 | ||||||
Noritake Co. Ltd. | 8,100 | 346,799 | ||||||
Norma Group SE | 1,114 | 82,035 | ||||||
NSK Ltd. | 25,300 | 339,877 | ||||||
NTN Corp.(a) | 11,400 | 50,319 | ||||||
Obara Group, Inc. | 600 | 35,586 | ||||||
OC Oerlikon Corp. AG (Registered)* | 4,758 | 77,530 | ||||||
Oiles Corp. | 8,620 | 186,777 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 111 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
OKUMA Corp. | 1,000 | $ | 57,300 | |||||
OSG Corp. | 1,500 | 33,283 | ||||||
Outotec OYJ* | 6,765 | 61,841 | ||||||
Palfinger AG(a) | 2,657 | 99,837 | ||||||
Pfeiffer Vacuum Technology AG | 302 | 44,734 | ||||||
Rational AG | 55 | 34,521 | ||||||
Rieter Holding AG (Registered)* | 165 | 32,103 | ||||||
Rotork plc | 23,256 | 105,384 | ||||||
Ryobi Ltd. | 26,000 | 663,395 | ||||||
Sandvik AB | 32,562 | 558,653 | ||||||
Schindler Holding AG | 1,622 | 336,886 | ||||||
Schindler Holding AG (Registered) | 602 | 121,081 | ||||||
Shima Seiki Manufacturing Ltd. | 1,300 | 82,687 | ||||||
Shinmaywa Industries Ltd. | 77,100 | 865,239 | ||||||
Sintokogio Ltd. | 2,200 | 23,523 | ||||||
SKF AB, Class A | 2,427 | 49,800 | ||||||
SKF AB, Class B | 8,988 | 183,039 | ||||||
SMC Corp. | 1,800 | 686,278 | ||||||
Sodick Co. Ltd. | 15,200 | 188,081 | ||||||
Spirax-Sarco Engineering plc | 2,783 | 220,982 | ||||||
Stabilus SA | 1,549 | 139,614 | ||||||
Star Micronics Co. Ltd. | 5,900 | 105,895 | ||||||
Sulzer AG (Registered) | 242 | 28,090 | ||||||
Sumitomo Heavy Industries Ltd. | 5,200 | 199,114 | ||||||
Tadano Ltd. | 6,500 | 100,388 | ||||||
Takeuchi Manufacturing Co. Ltd. | 28,000 | 642,522 | ||||||
Takuma Co. Ltd.(a) | 16,200 | 177,952 | ||||||
THK Co. Ltd. | 2,500 | 87,503 | ||||||
Toshiba Machine Co. Ltd. | 18,245 | 121,383 | ||||||
Trelleborg AB, Class B | 6,989 | 164,113 | ||||||
Tsubaki Nakashima Co. Ltd. | 5,600 | 132,343 | ||||||
Tsubakimoto Chain Co. | 11,000 | 95,499 | ||||||
Tsugami Corp. | 1,000 | 12,100 | ||||||
Union Tool Co. | 500 | 17,569 | ||||||
Valmet OYJ | 5,005 | 95,301 | ||||||
VAT Group AG* (c) | 114 | 16,975 | ||||||
Vesuvius plc(a) | 166,698 | 1,351,205 | ||||||
Volvo AB, Class A | 14,337 | 247,122 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Volvo AB, Class B | 43,983 | $ | 750,573 | |||||
Wacker Neuson SE | 5,236 | 169,034 | ||||||
Wartsila OYJ Abp | 12,879 | 274,641 | ||||||
Weir Group plc (The) | 6,802 | 200,116 | ||||||
YAMABIKO Corp. | 40,500 | 581,453 | ||||||
Yangzijiang Shipbuilding Holdings Ltd. | 144,100 | 127,334 | ||||||
Zardoya Otis SA | 836 | 8,555 | ||||||
32,096,972 | ||||||||
Marine – 0.2% | ||||||||
AP Moller – Maersk A/S, Class A | 39 | 59,860 | ||||||
AP Moller – Maersk A/S, Class B(a) | 162 | 261,548 | ||||||
Clarkson plc | 1,045 | 34,688 | ||||||
D/S Norden A/S* (a) | 3,952 | 72,482 | ||||||
Dfds A/S | 2,869 | 179,398 | ||||||
Hapag-Lloyd AG* (c) | 836 | 35,958 | ||||||
Iino Kaiun Kaisha Ltd. | 4,300 | 21,416 | ||||||
Irish Continental Group plc | 11,810 | 79,906 | ||||||
Kawasaki Kisen Kaisha Ltd.* (a) | 9,300 | 215,024 | ||||||
Kuehne + Nagel International AG (Registered) | 1,701 | 266,345 | ||||||
NS United Kaiun Kaisha Ltd. | 6,800 | 141,997 | ||||||
Orient Overseas International Ltd. | 7,000 | 66,626 | ||||||
Pacific Basin Shipping Ltd.* (a) | 323,000 | 86,427 | ||||||
SITC International Holdings Co. Ltd.(a) | 182,000 | 194,795 | ||||||
Stolt-Nielsen Ltd. | 10,344 | 147,198 | ||||||
Wallenius Wilhelmsen Logistics* | 16,984 | 117,663 | ||||||
Wilh Wilhelmsen Holding ASA, Class A | 1,768 | 51,311 | ||||||
Wilh Wilhelmsen Holding ASA, Class B | 2,216 | 64,175 | ||||||
2,096,817 | ||||||||
Media – 1.7% | ||||||||
Altice NV, Class A* (a) | 11,083 | 106,294 | ||||||
Altice NV, Class B* | 8,536 | 81,732 | ||||||
APN Outdoor Group Ltd.(a) | 17,328 | 71,417 |
See Accompanying Notes to the Financial Statements.
112 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Ascential plc | 19,337 | $ | 112,235 | |||||
Atresmedia Corp. de Medios de Comunicacion SA(a) | 82,539 | 775,850 | ||||||
Axel Springer SE | 3,159 | 258,963 | ||||||
Cineplex, Inc. | 4,765 | 111,547 | ||||||
Cineworld Group plc | 75,796 | 271,851 | ||||||
Cogeco Communications, Inc. | 2,501 | 133,463 | ||||||
Cogeco, Inc. | 6,642 | 340,921 | ||||||
Corus Entertainment, Inc., Class B(a) | 110,646 | 552,388 | ||||||
CTS Eventim AG & Co. KGaA | 1,375 | 64,524 | ||||||
CyberAgent, Inc. | 2,200 | 121,435 | ||||||
Daiichikosho Co. Ltd. | 1,100 | 57,802 | ||||||
Daily Mail & General Trust plc, Class A | 11,213 | 104,094 | ||||||
Dentsu, Inc. | 10,200 | 482,851 | ||||||
Entertainment One Ltd. | 272,160 | 1,026,366 | ||||||
Euromoney Institutional Investor plc | 1,812 | 32,794 | ||||||
Eutelsat Communications SA | 6,131 | 132,890 | ||||||
EVENT Hospitality and Entertainment Ltd. | 2,282 | 23,944 | ||||||
Evergrande Health Industry Group Ltd.* | 125,000 | 49,852 | ||||||
Fairfax Media Ltd.(a) | 127,452 | 68,788 | ||||||
Hakuhodo DY Holdings, Inc. | 7,400 | 103,536 | ||||||
Informa plc | 26,406 | 268,777 | ||||||
IPSOS | 40,419 | 1,538,278 | ||||||
ITV plc | 232,794 | 486,249 | ||||||
JCDecaux SA | 1,723 | 61,661 | ||||||
Juventus Football Club SpA* (a) | 24,274 | 18,477 | ||||||
Kadokawa Dwango Corp. | 2,500 | 25,862 | ||||||
Kinepolis Group NV(a) | 1,030 | 72,053 | ||||||
Lagardere SCA | 5,335 | 152,635 | ||||||
LIFULL Co. Ltd. | 1,200 | 9,782 | ||||||
Mediaset SpA* (a) | 20,560 | 81,850 | ||||||
Metropole Television SA | 1,210 | 29,823 | ||||||
Modern Times Group MTG AB, Class B | 1,045 | 41,260 | ||||||
Nine Entertainment Co. Holdings Ltd. | 625,635 | 1,114,535 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
NOS SGPS SA | 7,840 | $ | 46,661 | |||||
oOh!media Ltd.(a) | 4,553 | 16,737 | ||||||
Pearson plc(a) | 45,522 | 522,790 | ||||||
ProSiebenSat.1 Media SE | 13,608 | 494,880 | ||||||
Publicis Groupe SA | 7,614 | 570,353 | ||||||
Quebecor, Inc., Class B | 8,092 | 151,115 | ||||||
RAI Way SpA(c) | 8,120 | 45,914 | ||||||
REA Group Ltd. | 2,748 | 167,730 | ||||||
RTL Group SA | 1,140 | 94,073 | ||||||
Sanoma OYJ | 74,613 | 832,962 | ||||||
Schibsted ASA, Class B | 3,483 | 93,911 | ||||||
SES SA, FDR(a) | 22,680 | 350,745 | ||||||
Seven West Media Ltd.(a) | 643,458 | 269,571 | ||||||
Shaw Communications, Inc., Class B | 13,399 | 275,830 | ||||||
Shochiku Co. Ltd. | 300 | 44,085 | ||||||
Singapore Press Holdings Ltd.(a) | 76,200 | 156,538 | ||||||
SKY Network Television Ltd.(a) | 371,223 | 596,365 | ||||||
SKY Perfect JSAT Holdings, Inc. | 15,200 | 69,315 | ||||||
Sky plc | 39,447 | 748,699 | ||||||
Southern Cross Media Group Ltd.(a) | 517,741 | 451,393 | ||||||
Stroeer SE & Co. KGaA | 605 | 44,406 | ||||||
Tamedia AG (Registered) | 372 | 57,121 | ||||||
Technicolor SA (Registered)(a) | 370,413 | 607,302 | ||||||
Tele Columbus AG* (c) | 3,811 | 35,086 | ||||||
Telenet Group Holding NV* | 2,240 | 131,421 | ||||||
Television Broadcasts Ltd. | 22,800 | 72,628 | ||||||
Television Francaise 1(a) | 8,863 | 110,831 | ||||||
Toei Animation Co. Ltd. | 900 | 25,908 | ||||||
Toei Co. Ltd. | 2,000 | 224,629 | ||||||
Toho Co. Ltd. | 4,100 | 137,135 | ||||||
UBM plc | 14,409 | 192,112 | ||||||
Vector, Inc. | 1,500 | 29,006 | ||||||
Vivendi SA(a) | 23,571 | 623,394 | ||||||
Wowow, Inc. | 3,630 | 114,282 | ||||||
WPP AUNZ Ltd.(a) | 273,448 | 189,899 | ||||||
WPP plc(a) | 77,112 | 1,324,972 | ||||||
Zenrin Co. Ltd. | 2,400 | 48,494 | ||||||
18,955,072 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 113 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – 4.5% | ||||||||
Acacia Mining plc(a) | 101,219 | $ | 200,756 | |||||
Acerinox SA | 13,671 | 192,344 | ||||||
Agnico Eagle Mines Ltd. | 5,541 | 233,535 | ||||||
Aichi Steel Corp. | 9,900 | 428,389 | ||||||
Alamos Gold, Inc., Class A | 15,247 | 82,542 | ||||||
Alumina Ltd. | 94,737 | 188,792 | ||||||
AMG Advanced Metallurgical Group NV | 152 | 7,137 | ||||||
Anglo American plc(a) | 77,274 | 1,819,372 | ||||||
Antofagasta plc | 8,683 | 116,294 | ||||||
APERAM SA | 3,252 | 158,616 | ||||||
ArcelorMittal | 27,702 | 940,327 | ||||||
Asahi Holdings, Inc. | 33,200 | 609,539 | ||||||
Aurubis AG | 1,561 | 139,790 | ||||||
B2Gold Corp.* | 20,012 | 57,603 | ||||||
Barrick Gold Corp. | 24,499 | 330,233 | ||||||
Bekaert SA | 2,722 | 114,711 | ||||||
BHP Billiton Ltd. | 105,786 | 2,471,437 | ||||||
BHP Billiton plc | 121,257 | 2,578,686 | ||||||
BlueScope Steel Ltd. | 30,942 | 385,617 | ||||||
Boliden AB | 14,661 | 511,114 | ||||||
Centamin plc | 47,943 | 103,509 | ||||||
Centerra Gold, Inc.* | 176,823 | 1,081,393 | ||||||
Daido Steel Co. Ltd. | 1,700 | 92,282 | ||||||
Detour Gold Corp.* | 13,884 | 100,506 | ||||||
Dowa Holdings Co. Ltd. | 2,200 | 83,034 | ||||||
Eldorado Gold Corp.* | 63,880 | 60,793 | ||||||
Endeavour Mining Corp.* | 4,159 | 71,082 | ||||||
Eramet* | 818 | 142,415 | ||||||
Evolution Mining Ltd.(a) | 42,290 | 102,472 | ||||||
Evraz plc | 12,821 | 80,914 | ||||||
Ferrexpo plc | 229,264 | 742,391 | ||||||
First Majestic Silver Corp.* | 12,720 | 82,753 | ||||||
First Quantum Minerals Ltd. | 22,680 | 327,298 | ||||||
Fortescue Metals Group Ltd. | 41,770 | 143,777 | ||||||
Fortuna Silver Mines, Inc.* | 16,264 | 92,488 | ||||||
Franco-Nevada Corp. | 6,440 | 457,499 | ||||||
Fresnillo plc | 2,297 | 40,338 | ||||||
Galaxy Resources Ltd.* (a) | 98,577 | 227,697 | ||||||
Glencore plc* | 422,658 | 2,041,593 | ||||||
Goldcorp, Inc. | 14,780 | 196,459 | ||||||
Granges AB(a) | 70,308 | 989,121 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Hill & Smith Holdings plc | 3,253 | $ | 59,456 | |||||
Hitachi Metals Ltd. | 12,840 | 147,380 | ||||||
Hochschild Mining plc | 13,695 | 39,593 | ||||||
Hudbay Minerals, Inc. | 216,239 | 1,513,057 | ||||||
IAMGOLD Corp.* | 20,564 | 112,609 | ||||||
Independence Group NL | 36,717 | 143,291 | ||||||
Ivanhoe Mines Ltd., Class A* | 20,768 | 42,931 | ||||||
JFE Holdings, Inc. | 29,600 | 609,853 | ||||||
KAZ Minerals plc* | 18,115 | 229,646 | ||||||
Kinross Gold Corp.* | 26,820 | 103,979 | ||||||
Kirkland Lake Gold Ltd. | 24,381 | 426,018 | ||||||
Kobe Steel Ltd. | 24,300 | 251,383 | ||||||
Kyoei Steel Ltd.(a) | 14,300 | 298,088 | ||||||
Labrador Iron Ore Royalty Corp. | 61,348 | 1,045,637 | ||||||
Lucara Diamond Corp. | 227,480 | 360,220 | ||||||
Lundin Mining Corp. | 22,025 | 146,037 | ||||||
MAG Silver Corp.* | 5,320 | 59,219 | ||||||
Mineral Resources Ltd. | 23,733 | 322,467 | ||||||
Mitsubishi Materials Corp. | 4,800 | 146,511 | ||||||
Mitsui Mining & Smelting Co. Ltd. | 3,000 | 127,622 | ||||||
Nevsun Resources Ltd. | 25,643 | 71,611 | ||||||
New Gold, Inc.* | 31,391 | 73,706 | ||||||
Newcrest Mining Ltd. | 21,708 | 346,570 | ||||||
Nippon Denko Co. Ltd.(a) | 97,200 | 325,999 | ||||||
Nippon Light Metal Holdings Co. Ltd. | 66,500 | 178,670 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 46,710 | 1,018,080 | ||||||
Nisshin Steel Co. Ltd. | 5,500 | 73,183 | ||||||
Norsk Hydro ASA | 51,354 | 320,902 | ||||||
Northern Star Resources Ltd. | 33,407 | 161,138 | ||||||
Novagold Resources, Inc.* | 5,374 | 25,823 | ||||||
OceanaGold Corp. | 560,925 | 1,513,944 | ||||||
Osaka Steel Co. Ltd. | 1,000 | 21,549 | ||||||
OSAKA Titanium Technologies Co. Ltd. | 1,000 | 18,679 | ||||||
Osisko Gold Royalties Ltd. | 8,880 | 86,795 | ||||||
Outokumpu OYJ | 20,205 | 131,335 | ||||||
OZ Minerals Ltd. | 13,621 | 95,107 | ||||||
Pan American Silver Corp. | 3,272 | 52,834 | ||||||
Polymetal International plc | 10,077 | 101,237 | ||||||
Pretium Resources, Inc.* | 5,909 | 39,825 |
See Accompanying Notes to the Financial Statements.
114 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Randgold Resources Ltd. | 2,592 | $ | 209,493 | |||||
Regis Resources Ltd. | 398,439 | 1,419,595 | ||||||
Resolute Mining Ltd.(a) | 548,949 | 476,530 | ||||||
Rio Tinto Ltd. | 18,792 | 1,132,825 | ||||||
Rio Tinto plc | 60,588 | 3,292,972 | ||||||
Salzgitter AG | 36,152 | 1,990,445 | ||||||
Sandfire Resources NL | 147,420 | 883,563 | ||||||
Sandstorm Gold Ltd.* | 16,268 | 75,379 | ||||||
Sanyo Special Steel Co. Ltd.(a) | 22,400 | 570,926 | ||||||
Saracen Mineral Holdings Ltd.* (a) | 713,043 | 1,017,275 | ||||||
SEMAFO, Inc.* | 22,315 | 69,280 | ||||||
Sims Metal Management Ltd.(a) | 5,940 | 72,593 | ||||||
South32 Ltd. | 289,008 | 811,547 | ||||||
SSAB AB, Class A | 6,914 | 39,343 | ||||||
SSAB AB, Class B | 21,454 | 97,737 | ||||||
SSR Mining, Inc.* | 10,848 | 111,277 | ||||||
St Barbara Ltd. | 451,980 | 1,456,826 | ||||||
Sumitomo Metal Mining Co. Ltd. | 17,000 | 729,870 | ||||||
Syrah Resources Ltd.* (a) | 16,321 | 39,547 | ||||||
Tahoe Resources, Inc. | 281,637 | 1,421,422 | ||||||
Teck Resources Ltd., Class B | 27,459 | 690,357 | ||||||
thyssenkrupp AG | 11,826 | 308,625 | ||||||
Toho Titanium Co. Ltd. | 200 | 2,488 | ||||||
Toho Zinc Co. Ltd. | 11,400 | 529,239 | ||||||
Tokyo Steel Manufacturing Co. Ltd.(a) | 85,500 | 714,942 | ||||||
Topy Industries Ltd.(a) | 16,300 | 483,377 | ||||||
Torex Gold Resources, Inc.* | 7,233 | 74,477 | ||||||
Trevali Mining Corp.* | 542,862 | 503,924 | ||||||
Turquoise Hill Resources Ltd.* | 47,120 | 139,675 | ||||||
UACJ Corp.(a) | 1,200 | 31,243 | ||||||
Vedanta Resources plc | 7,796 | 78,193 | ||||||
voestalpine AG | 5,751 | 303,713 | ||||||
Wheaton Precious Metals Corp. | 6,339 | 131,779 | ||||||
Yamana Gold, Inc. | 43,152 | 124,210 | ||||||
Yodogawa Steel Works Ltd. | 2,800 | 79,963 | ||||||
49,783,282 |
Investments | Shares | Value | ||||||
Multiline Retail – 0.4% | ||||||||
B&M European Value Retail SA | 21,469 | $ | 119,849 | |||||
Canadian Tire Corp. Ltd., Class A(a) | 2,219 | 302,883 | ||||||
Dollarama, Inc. | 3,402 | 392,227 | ||||||
Don Quijote Holdings Co. Ltd. | 3,400 | 183,322 | ||||||
Europris ASA(c) | 147,987 | 517,237 | ||||||
H2O Retailing Corp. | 3,215 | 60,701 | ||||||
Harvey Norman Holdings Ltd.(a) | 38,982 | 103,578 | ||||||
Hudson’s Bay Co.(a) | 103,262 | 731,401 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 14,400 | 160,285 | ||||||
Izumi Co. Ltd. | 1,300 | 85,894 | ||||||
J Front Retailing Co. Ltd. | 10,700 | 173,566 | ||||||
Marks & Spencer Group plc | 97,443 | 386,131 | ||||||
Marui Group Co. Ltd.(a) | 5,500 | 114,348 | ||||||
Next plc | 7,032 | 509,071 | ||||||
Parco Co. Ltd. | 17,600 | 220,513 | ||||||
Ryohin Keikaku Co. Ltd. | 600 | 205,894 | ||||||
Sanyo Electric Railway Co. Ltd. | 3,900 | 99,759 | ||||||
Seria Co. Ltd.(a) | 1,000 | 48,983 | ||||||
Takashimaya Co. Ltd. | 16,000 | 137,446 | ||||||
4,553,088 | ||||||||
Multi-Utilities – 0.8% | ||||||||
A2A SpA | 62,479 | 125,875 | ||||||
ACEA SpA | 1,485 | 26,141 | ||||||
AGL Energy Ltd. | 19,197 | 314,886 | ||||||
Atco Ltd., Class I | 4,828 | 146,314 | ||||||
Canadian Utilities Ltd., Class A | 4,215 | 107,516 | ||||||
Centrica plc | 277,714 | 588,299 | ||||||
E.ON SE | 102,971 | 1,128,644 | ||||||
Engie SA | 84,888 | 1,492,273 | ||||||
Hera SpA | 23,474 | 87,126 | ||||||
Innogy SE(c) | 8,424 | 371,798 | ||||||
Iren SpA | 50,848 | 154,938 | ||||||
Just Energy Group, Inc. | 92,097 | 385,788 | ||||||
Keppel Infrastructure Trust | 106,600 | 43,476 | ||||||
National Grid plc | 130,167 | 1,511,018 | ||||||
REN – Redes Energeticas Nacionais SGPS SA | 256,090 | 808,174 | ||||||
RWE AG | 25,056 | 601,669 | ||||||
RWE AG (Preference) (Non-Voting) | 6,955 | 141,339 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 115 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Multi-Utilities – (continued) | ||||||||
Suez | 22,275 | $ | 321,875 | |||||
Telecom Plus plc | 3,958 | 58,986 | ||||||
Veolia Environnement SA* (a) | 30,699 | 729,014 | ||||||
9,145,149 | ||||||||
Oil, Gas & Consumable Fuels – 4.6% | ||||||||
Advantage Oil & Gas Ltd.* | 7,429 | 23,702 | ||||||
Aker BP ASA | 4,404 | 145,241 | ||||||
ARC Resources Ltd.(a) | 13,157 | 146,970 | ||||||
Beach Energy Ltd.(a) | 335,502 | 400,141 | ||||||
Birchcliff Energy Ltd. | 23,864 | 86,562 | ||||||
BP plc | 592,515 | 4,390,621 | ||||||
Brightoil Petroleum Holdings Ltd.* (b) | 50,147 | 9,584 | ||||||
BW LPG Ltd.* (a) (c) | 5,756 | 20,132 | ||||||
Cairn Energy plc* | 66,766 | 208,382 | ||||||
Caltex Australia Ltd. | 10,287 | 240,875 | ||||||
Cameco Corp. | 11,826 | 124,722 | ||||||
Canadian Natural Resources Ltd. | 33,777 | 1,220,446 | ||||||
Cenovus Energy, Inc. | 35,640 | 357,526 | ||||||
China Aviation Oil Singapore Corp. Ltd.* | 194,400 | 237,852 | ||||||
Cosmo Energy Holdings Co. Ltd. | 7,000 | 231,254 | ||||||
Crescent Point Energy Corp. | 37,341 | 327,693 | ||||||
CropEnergies AG | 13,224 | 81,644 | ||||||
Delek Energy Systems Ltd. | 76 | 31,410 | ||||||
Delek Group Ltd. | 399 | 59,985 | ||||||
DNO ASA* (a) | 620,217 | 1,158,199 | ||||||
Enagas SA | 13,284 | 387,440 | ||||||
Enbridge, Inc. | 54,396 | 1,650,189 | ||||||
Encana Corp. | 31,428 | 392,007 | ||||||
Enerplus Corp. | 16,456 | 191,267 | ||||||
Eni SpA | 67,797 | 1,326,980 | ||||||
Esso SA Francaise* | 684 | 41,486 | ||||||
Euronav NV(a) | 8,816 | 71,525 | ||||||
Freehold Royalties Ltd. | 2,910 | 29,532 | ||||||
Frontera Energy Corp.* (a) | 46,494 | 1,442,748 | ||||||
Galp Energia SGPS SA | 7,324 | 140,830 | ||||||
Gaztransport Et Technigaz SA | 4,860 | 301,520 | ||||||
Gibson Energy, Inc. | 7,625 | 98,558 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Husky Energy, Inc. | 11,656 | $ | 163,299 | |||||
Idemitsu Kosan Co. Ltd. | 5,800 | 227,124 | ||||||
Imperial Oil Ltd. | 8,910 | 277,527 | ||||||
Inpex Corp. | 26,200 | 335,805 | ||||||
Inter Pipeline Ltd. | 8,681 | 156,765 | ||||||
Itochu Enex Co. Ltd. | 48,700 | 477,988 | ||||||
James Fisher & Sons plc | 1,296 | 29,882 | ||||||
Jerusalem Oil Exploration* | 6,966 | 390,324 | ||||||
JXTG Holdings, Inc. | 158,650 | 1,035,774 | ||||||
Kelt Exploration Ltd.* | 5,548 | 35,142 | ||||||
Kinder Morgan Canada Ltd.(c) | 8,208 | 106,093 | ||||||
Koninklijke Vopak NV(a) | 2,356 | 116,423 | ||||||
Lundin Petroleum AB* | 4,170 | 115,518 | ||||||
MEG Energy Corp.* | 205,011 | 1,061,877 | ||||||
Naphtha Israel Petroleum Corp. Ltd. | 22,963 | 144,624 | ||||||
Neste OYJ | 5,346 | 451,487 | ||||||
New Hope Corp. Ltd.(a) | 234,576 | 382,470 | ||||||
New Zealand Refining Co. Ltd. (The) | 128,871 | 213,386 | ||||||
NexGen Energy Ltd.* | 22,848 | 45,626 | ||||||
Nostrum Oil & Gas plc* | 3,420 | 13,990 | ||||||
NuVista Energy Ltd.* | 7,121 | 46,827 | ||||||
Oil Refineries Ltd. | 38,080 | 16,532 | ||||||
OMV AG | 7,614 | 473,761 | ||||||
Origin Energy Ltd.* | 79,380 | 584,220 | ||||||
Paramount Resources Ltd., Class A* | 1,235 | 17,659 | ||||||
Parex Resources, Inc.* | 6,710 | 115,624 | ||||||
Parkland Fuel Corp. | 2,333 | 54,251 | ||||||
Paz Oil Co. Ltd. | 216 | 31,488 | ||||||
Pembina Pipeline Corp. | 9,963 | 317,787 | ||||||
PrairieSky Royalty Ltd. | 5,103 | 113,329 | ||||||
Repsol SA | 68,077 | 1,303,672 | ||||||
Royal Dutch Shell plc, Class A | 141,501 | 4,932,828 | ||||||
Royal Dutch Shell plc, Class B | 120,366 | 4,312,925 | ||||||
San-Ai Oil Co. Ltd. | 60,600 | 954,758 | ||||||
Santos Ltd.* | 84,078 | 389,683 | ||||||
Saras SpA | 387,834 | 926,853 | ||||||
Seven Generations Energy Ltd., Class A* | 10,096 | 144,279 | ||||||
Showa Shell Sekiyu KK | 10,200 | 144,203 |
See Accompanying Notes to the Financial Statements.
116 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Snam SpA | 79,218 | $ | 381,409 | |||||
Statoil ASA(a) | 24,571 | 630,293 | ||||||
Suncor Energy, Inc. | 50,949 | 1,951,399 | ||||||
TORC Oil & Gas Ltd. | 28,276 | 160,575 | ||||||
TOTAL SA | 136,918 | 8,656,655 | ||||||
Tourmaline Oil Corp.(a) | 3,000 | 56,515 | ||||||
TransCanada Corp. | 27,444 | 1,165,452 | ||||||
Tullow Oil plc* | 26,617 | 83,477 | ||||||
United Energy Group Ltd. | 7,290,000 | 613,054 | ||||||
Vermilion Energy, Inc.(a) | 3,688 | 124,856 | ||||||
Washington H Soul Pattinson & Co. Ltd. | 8,285 | 121,389 | ||||||
Whitecap Resources, Inc. | 17,480 | 126,810 | ||||||
Whitehaven Coal Ltd.(a) | 24,365 | 84,971 | ||||||
Woodside Petroleum Ltd. | 30,510 | 742,042 | ||||||
Z Energy Ltd. | 11,628 | 59,400 | ||||||
51,197,123 | ||||||||
Paper & Forest Products – 0.7% | ||||||||
Ahlstrom-Munksjo OYJ(a) | 7,752 | 154,726 | ||||||
Altri SGPS SA | 87,804 | 635,448 | ||||||
Canfor Corp.* | 7,392 | 170,046 | ||||||
Canfor Pulp Products, Inc. | 28,026 | 394,609 | ||||||
Daiken Corp. | 12,500 | 313,914 | ||||||
Daio Paper Corp.(a) | 3,745 | 52,534 | ||||||
Ence Energia y Celulosa SA | 98,172 | 761,485 | ||||||
Hokuetsu Kishu Paper Co. Ltd. | 4,900 | 30,629 | ||||||
Holmen AB, Class B | 4,070 | 100,831 | ||||||
Interfor Corp.* | 56,781 | 1,063,467 | ||||||
Metsa Board OYJ | 6,595 | 74,183 | ||||||
Mondi plc | 19,764 | 551,517 | ||||||
Navigator Co. SA (The)* | 6,520 | 38,127 | ||||||
Norbord, Inc. | 3,136 | 129,701 | ||||||
Oji Holdings Corp. | 44,000 | 309,618 | ||||||
Semapa-Sociedade de Investimento e Gestao | 25,151 | 563,383 | ||||||
Stella-Jones, Inc. | 1,045 | 37,930 | ||||||
Stora Enso OYJ, Class R | 28,836 | 572,590 | ||||||
Svenska Cellulosa AB SCA, Class A | 3,160 | 35,637 | ||||||
Svenska Cellulosa AB SCA, Class B | 14,939 | 166,289 |
Investments | Shares | Value | ||||||
Paper & Forest Products – (continued) | ||||||||
UPM-Kymmene OYJ | 19,926 | $ | 714,534 | |||||
West Fraser Timber Co. Ltd. | 2,213 | 150,134 | ||||||
Western Forest Products, Inc. | 317,277 | 685,563 | ||||||
7,706,895 | ||||||||
Personal Products – 1.0% | ||||||||
Asaleo Care Ltd.(a) | 335,259 | 328,991 | ||||||
Beiersdorf AG | 2,916 | 330,891 | ||||||
Blackmores Ltd.(a) | 798 | 71,062 | ||||||
Ci:z Holdings Co. Ltd. | 1,800 | 86,689 | ||||||
euglena Co. Ltd.* (a) | 4,200 | 38,651 | ||||||
Fancl Corp. | 2,500 | 98,241 | ||||||
Interparfums SA | 492 | 22,737 | ||||||
Kao Corp. | 14,600 | 1,048,051 | ||||||
Kobayashi Pharmaceutical Co. Ltd. | 1,400 | 118,090 | ||||||
Kose Corp. | 700 | 129,541 | ||||||
L’Oreal SA(a) | 7,785 | 1,870,351 | ||||||
Mandom Corp. | 2,600 | 93,854 | ||||||
Milbon Co. Ltd. | 1,000 | 43,546 | ||||||
Noevir Holdings Co. Ltd. | 1,900 | 136,824 | ||||||
Ontex Group NV(a) | 2,321 | 59,674 | ||||||
Oriflame Holding AG | 1,656 | 78,946 | ||||||
Pola Orbis Holdings, Inc. | 2,000 | 87,366 | ||||||
Shiseido Co. Ltd. | 16,200 | 1,052,907 | ||||||
Unilever NV, CVA | 50,544 | 2,897,641 | ||||||
Unilever plc | 40,500 | 2,274,539 | ||||||
YA-MAN Ltd. | 800 | 17,437 | ||||||
10,886,029 | ||||||||
Pharmaceuticals – 3.4% | ||||||||
ALK-Abello A/S* (a) | 532 | 67,636 | ||||||
Almirall SA(a) | 6,475 | 80,813 | ||||||
Aphria, Inc.* (a) | 6,536 | 51,138 | ||||||
Astellas Pharma, Inc. | 62,700 | 919,944 | ||||||
AstraZeneca plc | 36,774 | 2,584,704 | ||||||
Aurora Cannabis, Inc.* (a) | 29,392 | 185,484 | ||||||
Bayer AG (Registered) | 26,406 | 3,167,402 | ||||||
Boiron SA | 613 | 54,732 | ||||||
BTG plc* | 12,197 | 114,909 | ||||||
Canopy Growth Corp.* (a) | 10,177 | 239,034 | ||||||
Chugai Pharmaceutical Co. Ltd. | 8,600 | 454,266 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 117 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
COSMO Pharmaceuticals NV | 760 | $ | 111,401 | |||||
Daiichi Sankyo Co. Ltd. | 18,900 | 647,704 | ||||||
Dechra Pharmaceuticals plc | 5,318 | 200,845 | ||||||
Eisai Co. Ltd. | 9,200 | 617,537 | ||||||
Faes Farma SA | 26,904 | 109,543 | ||||||
Galenica AG* (c) | 3,128 | 169,055 | ||||||
GlaxoSmithKline plc | 148,274 | 2,984,547 | ||||||
GW Pharmaceuticals plc* (b) | 1 | 10 | ||||||
H Lundbeck A/S(a) | 1,852 | 107,817 | ||||||
Haw Par Corp. Ltd. | 3,200 | 33,666 | ||||||
Hikma Pharmaceuticals plc(a) | 9,696 | 172,010 | ||||||
Hisamitsu Pharmaceutical Co., Inc. | 1,900 | 148,111 | ||||||
Hutchison China MediTech Ltd.* | 715 | 47,271 | ||||||
Indivior plc* | 25,760 | 160,762 | ||||||
Ipsen SA | 770 | 125,127 | ||||||
JCR Pharmaceuticals Co. Ltd. | 600 | 31,528 | ||||||
Kaken Pharmaceutical Co. Ltd. | 1,500 | 88,828 | ||||||
Kissei Pharmaceutical Co. Ltd. | 1,400 | 39,598 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 5,000 | 108,476 | ||||||
Laboratorios Farmaceuticos Rovi SA | 228 | 4,642 | ||||||
Merck KGaA | 4,779 | 468,963 | ||||||
Mitsubishi Tanabe Pharma Corp. | 4,600 | 87,607 | ||||||
Mochida Pharmaceutical Co. Ltd. | 1,600 | 112,881 | ||||||
Nippon Shinyaku Co. Ltd. | 1,400 | 104,400 | ||||||
Novartis AG (Registered) | 83,673 | 6,483,199 | ||||||
Novo Nordisk A/S, Class B | 56,700 | 2,682,990 | ||||||
Ono Pharmaceutical Co. Ltd. | 16,800 | 389,121 | ||||||
Orion OYJ, Class A | 1,474 | 48,529 | ||||||
Orion OYJ, Class B | 3,812 | 115,971 | ||||||
Otsuka Holdings Co. Ltd. | 17,500 | 916,701 | ||||||
Recipharm AB, Class B(a) | 3,741 | 51,004 | ||||||
Recordati SpA | 2,342 | 83,898 | ||||||
Roche Holding AG – BR | 972 | 222,503 | ||||||
Roche Holding AG – Genusschein | 21,631 | 4,825,948 | ||||||
Rohto Pharmaceutical Co. Ltd. | 2,000 | 58,396 | ||||||
Sanofi | 37,584 | 2,987,457 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Santen Pharmaceutical Co. Ltd. | 16,300 | $ | 274,832 | |||||
Sawai Pharmaceutical Co. Ltd.(a) | 1,200 | 51,981 | ||||||
Seikagaku Corp. | 1,800 | 29,889 | ||||||
Shionogi & Co. Ltd. | 9,400 | 483,981 | ||||||
Sosei Group Corp.* (a) | 300 | 20,781 | ||||||
STADA Arzneimittel AG | 2,357 | 238,753 | ||||||
Sumitomo Dainippon Pharma Co. Ltd.(a) | 10,400 | 189,609 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 2,500 | 239,662 | ||||||
Takeda Pharmaceutical Co. Ltd. | 21,900 | 924,833 | ||||||
Teva Pharmaceutical Industries Ltd. | 51,192 | 934,799 | ||||||
Torii Pharmaceutical Co. Ltd. | 700 | 19,070 | ||||||
Towa Pharmaceutical Co. Ltd. | 400 | 25,442 | ||||||
Tsumura & Co. | 900 | 32,735 | ||||||
UCB SA | 4,374 | 331,666 | ||||||
United Laboratories International Holdings Ltd. (The)* (a) | 130,000 | 141,293 | ||||||
Valeant Pharmaceuticals International, Inc.* | 13,621 | 246,132 | ||||||
Vectura Group plc* (a) | 52,567 | 58,791 | ||||||
Vifor Pharma AG(a) | 1,529 | 242,888 | ||||||
Virbac SA* | 532 | 83,045 | ||||||
ZERIA Pharmaceutical Co. Ltd. | 1,800 | 36,995 | ||||||
38,075,285 | ||||||||
Professional Services – 0.9% | ||||||||
Adecco Group AG (Registered) | 6,156 | 410,068 | ||||||
AF AB, Class B | 3,322 | 69,419 | ||||||
ALS Ltd. | 13,503 | 79,503 | ||||||
Applus Services SA | 17,126 | 231,953 | ||||||
Benefit One, Inc. | 1,000 | 23,468 | ||||||
Bertrandt AG | 5,351 | 599,636 | ||||||
Brunel International NV | 2,003 | 36,034 | ||||||
Bureau Veritas SA | 3,536 | 92,493 | ||||||
Capita plc | 39,447 | 104,074 | ||||||
DKSH Holding AG | 660 | 53,205 | ||||||
en-japan, Inc. | 1,700 | 79,699 | ||||||
Experian plc | 29,808 | 684,404 |
See Accompanying Notes to the Financial Statements.
118 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Professional Services – (continued) | ||||||||
Funai Soken Holdings, Inc.(a) | 2,700 | $ | 63,216 | |||||
Groupe Crit | 2,511 | 273,041 | ||||||
Hays plc | 34,264 | 84,618 | ||||||
Intertek Group plc | 4,779 | 322,601 | ||||||
Intertrust NV(c) | 61,398 | 1,223,988 | ||||||
IPH Ltd.(a) | 55,242 | 152,620 | ||||||
JAC Recruitment Co. Ltd.(a) | 1,300 | 26,481 | ||||||
McMillan Shakespeare Ltd. | 18,711 | 238,413 | ||||||
Meitec Corp. | 2,400 | 131,816 | ||||||
Morneau Shepell, Inc. | 2,428 | 48,051 | ||||||
Nihon M&A Center, Inc. | 2,400 | 70,404 | ||||||
Nomura Co. Ltd. | 3,000 | 60,370 | ||||||
Outsourcing, Inc. | 3,000 | 50,555 | ||||||
Pagegroup plc | 20,728 | 153,455 | ||||||
Persol Holdings Co. Ltd. | 5,700 | 135,592 | ||||||
Randstad NV | 6,480 | 417,919 | ||||||
Recruit Holdings Co. Ltd. | 55,200 | 1,274,758 | ||||||
RELX NV(a) | 31,995 | 680,932 | ||||||
RELX plc | 33,129 | 709,322 | ||||||
RWS Holdings plc | 6,434 | 32,523 | ||||||
SEEK Ltd.(a) | 5,653 | 82,911 | ||||||
SGS SA (Registered) | 206 | 502,982 | ||||||
Stantec, Inc. | 3,052 | 77,779 | ||||||
Synergie SA | 5,346 | 328,119 | ||||||
TechnoPro Holdings, Inc. | 1,900 | 110,432 | ||||||
Teleperformance | 1,701 | 273,129 | ||||||
Wolters Kluwer NV(a) | 9,558 | 517,696 | ||||||
10,507,679 | ||||||||
Real Estate Management & Development – 3.5% | ||||||||
ADO Group Ltd.* | 8,847 | 161,749 | ||||||
ADO Properties SA(c) | 22,842 | 1,257,351 | ||||||
Aeon Mall Co. Ltd.(a) | 7,690 | 155,873 | ||||||
Africa Israel Properties Ltd.* | 10,611 | 245,817 | ||||||
Airport City Ltd.* | 4,894 | 56,096 | ||||||
Allreal Holding AG (Registered)* | 583 | 96,057 | ||||||
Alony Hetz Properties & Investments Ltd. | 3,800 | 33,797 | ||||||
Alrov Properties and Lodgings Ltd. | 7,938 | 269,388 | ||||||
Altus Group Ltd. | 1,760 | 44,345 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Amot Investments Ltd. | 14,530 | $ | 71,804 | |||||
Aroundtown SA | 13,148 | 105,161 | ||||||
Ascendas India Trust(c) | 7,600 | 5,970 | ||||||
Ashtrom Properties Ltd. | 30,628 | 129,223 | ||||||
Atrium European Real Estate Ltd.* | 166,941 | 810,826 | ||||||
Atrium Ljungberg AB, Class B | 7,038 | 111,732 | ||||||
Aveo Group(a) | 393,417 | 778,064 | ||||||
Azrieli Group Ltd. | 1,627 | 74,660 | ||||||
Bayside Land Corp. | 144 | 62,677 | ||||||
Big Shopping Centers Ltd. | 4,455 | 286,277 | ||||||
Blue Square Real Estate Ltd. | 2,648 | 95,016 | ||||||
BUWOG AG* | 6,353 | 222,902 | ||||||
CA Immobilien Anlagen AG(a) | 1,760 | 61,114 | ||||||
Capital & Counties Properties plc | 38,823 | 154,162 | ||||||
CapitaLand Ltd. | 68,400 | 194,240 | ||||||
Carmila SA, REIT(a) | 760 | 23,048 | ||||||
Castellum AB | 17,739 | 288,109 | ||||||
Catena AB | 15,228 | 300,972 | ||||||
Chinese Estates Holdings Ltd. | 38,000 | 56,746 | ||||||
City Developments Ltd. | 13,300 | 127,269 | ||||||
Citycon OYJ(a) | 39,057 | 89,611 | ||||||
CK Asset Holdings Ltd. | 162,000 | 1,404,657 | ||||||
CLS Holdings plc | 14,240 | 49,034 | ||||||
Colliers International Group, Inc. | 1,940 | 131,977 | ||||||
D Carnegie & Co. AB* | 6,592 | 102,842 | ||||||
Daejan Holdings plc | 8,343 | 689,474 | ||||||
Daibiru Corp. | 3,300 | 39,356 | ||||||
Daikyo, Inc. | 3,300 | 71,926 | ||||||
Daito Trust Construction Co. Ltd. | 2,000 | 333,653 | ||||||
Daiwa House Industry Co. Ltd. | 35,400 | 1,297,272 | ||||||
Deutsche EuroShop AG | 46,575 | 1,676,903 | ||||||
Deutsche Wohnen SE | 10,530 | 497,953 | ||||||
Dios Fastigheter AB | 83,268 | 530,485 | ||||||
Emperor International Holdings Ltd. | 708,000 | 215,605 | ||||||
Fabege AB | 12,308 | 142,606 | ||||||
Far East Consortium International Ltd. | 974,019 | 558,479 | ||||||
Fastighets AB Balder, Class B* | 3,518 | 91,099 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 119 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
First Capital Realty, Inc. | 6,482 | $ | 101,481 | |||||
FirstService Corp. | 1,780 | 124,966 | ||||||
Gazit-Globe Ltd. | 8,196 | 77,680 | ||||||
Goldcrest Co. Ltd. | 17,200 | 365,770 | ||||||
Grainger plc | 22,537 | 97,284 | ||||||
Grand City Properties SA | 2,508 | 60,603 | ||||||
Great Eagle Holdings Ltd. | 8,536 | 43,288 | ||||||
GSH Corp. Ltd. | 60,800 | 21,812 | ||||||
Hang Lung Group Ltd. | 27,000 | 81,878 | ||||||
Hang Lung Properties Ltd. | 103,000 | 244,630 | ||||||
Heiwa Real Estate Co. Ltd. | 27,900 | 654,251 | ||||||
Hemfosa Fastigheter AB | 10,627 | 132,245 | ||||||
Henderson Land Development Co. Ltd. | 26,149 | 166,758 | ||||||
Hiag Immobilien Holding AG* | 112 | 14,030 | ||||||
HKR International Ltd. | 665,600 | 406,234 | ||||||
Ho Bee Land Ltd. | 165,100 | 321,708 | ||||||
Hufvudstaden AB, Class A | 9,252 | 136,510 | ||||||
Hulic Co. Ltd. | 4,700 | 50,554 | ||||||
Hysan Development Co. Ltd. | 19,000 | 110,999 | ||||||
Ichigo, Inc. | 14,300 | 63,773 | ||||||
Immofinanz AG* | 40,897 | 107,421 | ||||||
Industrial Buildings Corp. Ltd.* | 16,036 | 20,609 | ||||||
Intershop Holding AG(a) | 131 | 65,507 | ||||||
Isras Investment Co. Ltd. | 984 | 112,187 | ||||||
Japan Asset Marketing Co. Ltd.* | 53,700 | 60,853 | ||||||
Jerusalem Economy Ltd.* | 166,131 | 404,719 | ||||||
Jeudan A/S | 112 | 17,944 | ||||||
K Wah International Holdings Ltd. | 1,176,089 | 726,790 | ||||||
Kabuki-Za Co. Ltd. | 1,000 | 53,096 | ||||||
Kenedix, Inc. | 13,500 | 78,218 | ||||||
Kerry Properties Ltd. | 39,000 | 187,341 | ||||||
Klovern AB, Class B(a) | 496,935 | 623,513 | ||||||
Kowloon Development Co. Ltd. | 264,000 | 298,370 | ||||||
Kungsleden AB(a) | 176,823 | 1,259,988 | ||||||
Lai Sun Development Co. Ltd. | 154,124 | 239,584 | ||||||
Langham Hospitality Investments and Langham Hospitality Investments Ltd. | 143,500 | 60,155 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
LEG Immobilien AG | 2,673 | $ | 308,548 | |||||
LendLease Group | 23,895 | 322,684 | ||||||
Leopalace21 Corp. | 21,500 | 186,854 | ||||||
Melisron Ltd. | 1,805 | 73,998 | ||||||
Mitsubishi Estate Co. Ltd. | 35,100 | 642,337 | ||||||
Mitsui Fudosan Co. Ltd. | 36,600 | 940,378 | ||||||
Mobimo Holding AG (Registered)* | 556 | 144,069 | ||||||
Morguard Corp. | 4,455 | 571,492 | ||||||
New World Development Co. Ltd. | 189,885 | 280,657 | ||||||
Nexity SA | 1,773 | 110,856 | ||||||
Nomura Real Estate Holdings, Inc. | 5,800 | 144,066 | ||||||
Norstar Holdings, Inc. | 6,827 | 120,662 | ||||||
Norwegian Property ASA | 16,948 | 21,283 | ||||||
NTT Urban Development Corp. | 3,200 | 37,754 | ||||||
Olav Thon Eiendomsselskap ASA | 4,104 | 74,589 | ||||||
Open House Co. Ltd. | 2,000 | 111,857 | ||||||
OUE Ltd. | 7,600 | 10,389 | ||||||
Oxley Holdings Ltd. | 440,088 | 161,204 | ||||||
PATRIZIA Immobilien AG* | 3,248 | 65,064 | ||||||
Perennial Real Estate Holdings Ltd. | 299,200 | 197,727 | ||||||
Property & Building Corp. Ltd. | 1,766 | 131,791 | ||||||
PSP Swiss Property AG (Registered) | 1,501 | 140,790 | ||||||
Purplebricks Group plc* (a) | 13,464 | 64,164 | ||||||
Relo Group, Inc. | 2,270 | 51,157 | ||||||
S IMMO AG | 45,117 | 893,970 | ||||||
Sagax AB, Class B | 4,852 | 56,828 | ||||||
Savills plc | 129,195 | 1,748,327 | ||||||
SEA Holdings Ltd. | 197,170 | 326,094 | ||||||
Sinarmas Land Ltd.(a) | 357,200 | 98,469 | ||||||
Sino Land Co. Ltd. | 184,066 | 318,493 | ||||||
St Modwen Properties plc | 2,689 | 15,193 | ||||||
Sumitomo Realty & Development Co. Ltd. | 10,000 | 397,441 | ||||||
Summit Real Estate Holdings Ltd. | 41,958 | 377,259 | ||||||
Sun Hung Kai Properties Ltd. | 88,435 | 1,428,797 | ||||||
Swire Pacific Ltd., Class A | 20,500 | 203,740 |
See Accompanying Notes to the Financial Statements.
120 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Swire Pacific Ltd., Class B | 245,000 | $ | 414,564 | |||||
Swire Properties Ltd. | 47,600 | 169,518 | ||||||
Swiss Prime Site AG (Registered)* | 2,592 | 243,646 | ||||||
TAG Immobilien AG | 7,460 | 157,640 | ||||||
TAI Cheung Holdings Ltd. | 324,000 | 357,512 | ||||||
Takara Leben Co. Ltd.(a) | 49,436 | 210,078 | ||||||
Tateru, Inc. | 2,500 | 42,541 | ||||||
Technopolis OYJ | 103,680 | 486,659 | ||||||
TLG Immobilien AG | 2,046 | 58,932 | ||||||
TOC Co. Ltd. | 61,600 | 546,054 | ||||||
Tokyo Tatemono Co. Ltd. | 7,800 | 118,827 | ||||||
Tokyu Fudosan Holdings Corp. | 19,900 | 156,763 | ||||||
Tricon Capital Group, Inc. | 115,749 | 908,331 | ||||||
United Industrial Corp. Ltd. | 5,656 | 13,926 | ||||||
Unizo Holdings Co. Ltd.(a) | 14,200 | 339,347 | ||||||
UOL Group Ltd. | 26,999 | 179,647 | ||||||
Victoria Park AB, Class A | 3,808 | 15,375 | ||||||
Victoria Park AB, Class B | 7,869 | 32,446 | ||||||
Vonovia SE | 17,055 | 857,409 | ||||||
Wallenstam AB, Class B | 8,037 | 72,299 | ||||||
Wang On Properties Ltd. | 76,000 | 12,008 | ||||||
Wharf Holdings Ltd. (The) | 57,000 | 190,648 | ||||||
Wheelock & Co. Ltd. | 38,000 | 283,490 | ||||||
Wheelock Properties Singapore Ltd. | 16,500 | 22,680 | ||||||
Wihlborgs Fastigheter AB | 4,169 | 97,084 | ||||||
Wing Tai Holdings Ltd.(a) | 59,200 | 91,211 | ||||||
Wing Tai Properties Ltd. | 324,000 | 251,827 | ||||||
Yoma Strategic Holdings Ltd. | 91,200 | 29,618 | ||||||
38,935,187 | ||||||||
Road & Rail – 1.7% | ||||||||
ALD SA* (a) (c) | 3,724 | 63,081 | ||||||
Aurizon Holdings Ltd. | 22,153 | 75,250 | ||||||
Canadian National Railway Co. | 24,381 | 1,886,083 | ||||||
Canadian Pacific Railway Ltd. | 4,941 | 902,982 | ||||||
Central Japan Railway Co. | 11,200 | 2,248,700 | ||||||
ComfortDelGro Corp. Ltd. | 136,300 | 231,619 | ||||||
DSV A/S | 5,913 | 470,133 | ||||||
East Japan Railway Co. | 10,900 | 1,044,926 |
Investments | Shares | Value | ||||||
Road & Rail – (continued) | ||||||||
Europcar Groupe SA(c) | 6,101 | $ | 71,280 | |||||
Firstgroup plc* | 975,479 | 1,516,897 | ||||||
Fukuyama Transporting Co. Ltd. | 1,000 | 41,809 | ||||||
Go-Ahead Group plc | 37,843 | 1,011,708 | ||||||
Hankyu Hanshin Holdings, Inc. | 5,400 | 212,940 | ||||||
Hitachi Transport System Ltd. | 2,700 | 72,321 | ||||||
Keikyu Corp.(a) | 14,100 | 258,613 | ||||||
Keio Corp.(a) | 2,800 | 128,197 | ||||||
Keisei Electric Railway Co. Ltd. | 5,100 | 166,388 | ||||||
Kintetsu Group Holdings Co. Ltd. | 8,700 | 354,201 | ||||||
Kyushu Railway Co. | 2,100 | 67,361 | ||||||
MTR Corp. Ltd.(a) | 42,881 | 241,772 | ||||||
Nankai Electric Railway Co. Ltd. | 3,000 | 79,918 | ||||||
National Express Group plc | 399,411 | 2,157,605 | ||||||
Nikkon Holdings Co. Ltd. | 2,600 | 69,357 | ||||||
Nippon Express Co. Ltd. | 3,700 | 279,634 | ||||||
Nishi-Nippon Railroad Co. Ltd. | 1,000 | 27,782 | ||||||
Odakyu Electric Railway Co. Ltd. | 16,400 | 353,853 | ||||||
Sankyu, Inc. | 2,333 | 113,425 | ||||||
Seino Holdings Co. Ltd. | 7,500 | 140,713 | ||||||
Senko Group Holdings Co. Ltd.(a) | 133,200 | 1,024,943 | ||||||
Sixt SE | 550 | 64,956 | ||||||
Sixt SE (Preference) | 238 | 19,525 | ||||||
Stagecoach Group plc(a) | 343,092 | 737,190 | ||||||
Stef SA | 2,916 | 360,062 | ||||||
TFI International, Inc. | 6,708 | 194,498 | ||||||
Tobu Railway Co. Ltd. | 4,000 | 127,576 | ||||||
Tokyu Corp. | 22,000 | 370,135 | ||||||
Trancom Co. Ltd. | 5,400 | 409,596 | ||||||
Transport International Holdings Ltd. | 184,400 | 559,197 | ||||||
VTG AG | 4,293 | 246,373 | ||||||
West Japan Railway Co. | 10,400 | 736,577 | ||||||
19,139,176 | ||||||||
Semiconductors & Semiconductor Equipment – 0.7% | ||||||||
Advantest Corp.(a) | 3,100 | 74,224 | ||||||
AIXTRON SE* | 4,110 | 58,868 | ||||||
ams AG* (a) | 3,564 | 296,598 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 121 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
ASM International NV | 677 | $ | 40,652 | |||||
ASM Pacific Technology Ltd.(a) | 5,000 | 68,805 | ||||||
ASML Holding NV(a) | 13,851 | 2,635,728 | ||||||
BE Semiconductor Industries NV(a) | 2,002 | 138,719 | ||||||
Dialog Semiconductor plc* | 1,964 | 42,083 | ||||||
Disco Corp. | 800 | 140,955 | ||||||
Infineon Technologies AG | 34,830 | 895,497 | ||||||
IQE plc* (a) | 30,932 | 44,820 | ||||||
Japan Material Co. Ltd. | 3,900 | 51,786 | ||||||
Landing International Development Ltd.* | 8,280,000 | 189,902 | ||||||
Lasertec Corp. | 500 | 16,678 | ||||||
Melexis NV | 495 | 47,277 | ||||||
Nordic Semiconductor ASA* | 4,999 | 31,637 | ||||||
Nova Measuring Instruments Ltd.* | 800 | 21,000 | ||||||
NuFlare Technology, Inc. | 3,800 | 251,423 | ||||||
Rohm Co. Ltd. | 2,200 | 205,474 | ||||||
Sanken Electric Co. Ltd. | 30,000 | 193,009 | ||||||
SCREEN Holdings Co. Ltd. | 1,800 | 148,211 | ||||||
Shindengen Electric Manufacturing Co. Ltd. | 8,100 | 510,761 | ||||||
Shinko Electric Industries Co. Ltd. | 5,800 | 45,425 | ||||||
Siltronic AG | 754 | 121,798 | ||||||
SMA Solar Technology AG | 992 | 61,305 | ||||||
SOITEC* | 816 | 66,548 | ||||||
STMicroelectronics NV | 26,082 | 571,002 | ||||||
SUMCO Corp. | 4,100 | 101,240 | ||||||
Tokyo Electron Ltd. | 4,700 | 904,350 | ||||||
Tokyo Seimitsu Co. Ltd. | 1,400 | 53,544 | ||||||
Tower Semiconductor Ltd.* | 3,423 | 90,068 | ||||||
Ulvac, Inc. | 1,700 | 91,506 | ||||||
8,210,893 | ||||||||
Software – 0.9% | ||||||||
Altium Ltd. | 5,461 | 83,764 | ||||||
AVEVA Group plc | 3,390 | 100,575 | ||||||
BasWare OYJ* | 532 | 26,353 | ||||||
BlackBerry Ltd.* | 14,355 | 150,498 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
Blue Prism Group plc* (a) | 912 | $ | 17,636 | |||||
Capcom Co. Ltd.(a) | 2,600 | 49,968 | ||||||
CLX Communications AB* (a) (c) | 4,104 | 30,934 | ||||||
COLOPL, Inc.(a) | 3,000 | 22,728 | ||||||
Constellation Software, Inc. | 652 | 466,707 | ||||||
Dassault Systemes SE | 4,131 | 535,293 | ||||||
Descartes Systems Group, Inc. (The)* | 4,000 | 118,413 | ||||||
Enghouse Systems Ltd. | 1,672 | 86,838 | ||||||
Fidessa Group plc | 1,795 | 97,163 | ||||||
F-Secure OYJ | 3,724 | 16,670 | ||||||
Fuji Soft, Inc. | 1,600 | 61,924 | ||||||
Gemalto NV | 5,670 | 341,703 | ||||||
GungHo Online Entertainment, Inc. | 9,300 | 28,132 | ||||||
Hilan Ltd. | 1,569 | 34,460 | ||||||
IGG, Inc. | 75,000 | 114,293 | ||||||
IRESS Ltd.(a) | 5,425 | 42,875 | ||||||
Justsystems Corp. | 5,600 | 132,803 | ||||||
Kinaxis, Inc.* | 1,436 | 92,963 | ||||||
Koei Tecmo Holdings Co. Ltd. | 1,440 | 29,728 | ||||||
Konami Holdings Corp. | 2,200 | 108,165 | ||||||
LINE Corp.* (a) | 900 | 32,858 | ||||||
Micro Focus International plc | 11,549 | 199,315 | ||||||
Miroku Jyoho Service Co. Ltd. | 1,000 | 28,513 | ||||||
MYOB Group Ltd.(a) | 24,213 | 59,401 | ||||||
Nemetschek SE | 770 | 92,845 | ||||||
Nexon Co. Ltd.* | 9,800 | 142,668 | ||||||
Nice Ltd.* | 2,136 | 202,682 | ||||||
Nintendo Co. Ltd. | 3,500 | 1,476,765 | ||||||
NSD Co. Ltd. | 2,580 | 53,946 | ||||||
Open Text Corp. | 11,421 | 403,849 | ||||||
Oracle Corp. Japan | 800 | 65,798 | ||||||
Paradox Interactive AB | 952 | 13,872 | ||||||
RIB Software SE | 1,376 | 36,541 | ||||||
Sage Group plc (The) | 35,154 | 307,560 | ||||||
SAP SE | 31,752 | 3,545,487 | ||||||
SimCorp A/S | 2,552 | 185,896 | ||||||
Software AG | 1,320 | 65,165 | ||||||
Sophos Group plc(c) | 11,880 | 81,651 | ||||||
Square Enix Holdings Co. Ltd. | 1,800 | 75,010 | ||||||
Systena Corp. | 1,300 | 49,422 |
See Accompanying Notes to the Financial Statements.
122 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Software – (continued) | ||||||||
Temenos Group AG (Registered)* | 1,377 | $ | 174,299 | |||||
Trend Micro, Inc. | 2,500 | 149,874 | ||||||
Ubisoft Entertainment SA* | 2,091 | 200,238 | ||||||
WiseTech Global Ltd.(a) | 4,953 | 37,537 | ||||||
10,471,778 | ||||||||
Specialty Retail – 2.2% | ||||||||
ABC-Mart, Inc. | 700 | 46,123 | ||||||
Adastria Co. Ltd.(a) | 25,900 | 450,188 | ||||||
Alpen Co. Ltd.(a) | 10,600 | 232,875 | ||||||
AOKI Holdings, Inc. | 36,500 | 559,383 | ||||||
Aoyama Trading Co. Ltd. | 2,000 | 77,039 | ||||||
AP Eagers Ltd.(a) | 57,657 | 382,562 | ||||||
Arcland Sakamoto Co. Ltd. | 27,800 | 438,753 | ||||||
Autobacs Seven Co. Ltd. | 2,100 | 39,726 | ||||||
Automotive Holdings Group Ltd.(a) | 180,171 | 459,687 | ||||||
BCA Marketplace plc(a) | 685,584 | 1,799,815 | ||||||
Bic Camera, Inc. | 4,100 | 67,369 | ||||||
Bilia AB, Class A(a) | 55,276 | 458,053 | ||||||
Carasso Motors Ltd. | 26,068 | 163,093 | ||||||
Card Factory plc | 13,295 | 42,191 | ||||||
CECONOMY AG | 10,028 | 112,629 | ||||||
Chiyoda Co. Ltd. | 2,800 | 67,272 | ||||||
Chow Sang Sang Holdings International Ltd. | 345,000 | 757,850 | ||||||
DCM Holdings Co. Ltd.(a) | 99,200 | 988,147 | ||||||
Delek Automotive Systems Ltd. | 37,179 | 266,812 | ||||||
Dixons Carphone plc | 80,387 | 224,764 | ||||||
Dufry AG (Registered)* (a) | 339 | 48,235 | ||||||
Dunelm Group plc | 25,839 | 200,724 | ||||||
EDION Corp.(a) | 77,000 | 904,930 | ||||||
Esprit Holdings Ltd.* (a) | 146,700 | 50,842 | ||||||
Fast Retailing Co. Ltd. | 1,900 | 837,094 | ||||||
Fenix Outdoor International AG | 366 | 44,290 | ||||||
Fielmann AG | 603 | 49,614 | ||||||
Fnac Darty SA* | 15,393 | 1,655,206 | ||||||
Geo Holdings Corp. | 28,600 | 468,891 | ||||||
Giordano International Ltd. | 1,082,000 | 664,510 | ||||||
Halfords Group plc | 178,605 | 931,854 |
Investments | Shares | Value | ||||||
Specialty Retail – (continued) | ||||||||
Hennes & Mauritz AB, Class B(a) | 31,266 | $ | 535,774 | |||||
Hikari Tsushin, Inc. | 600 | 97,382 | ||||||
Hornbach Baumarkt AG | 4,743 | 159,594 | ||||||
Hornbach Holding AG & Co. KGaA | 7,209 | 580,951 | ||||||
IDOM, Inc. | 32,400 | 234,506 | ||||||
Industria de Diseno Textil SA | 38,151 | 1,188,304 | ||||||
JB Hi-Fi Ltd.(a) | 4,982 | 96,649 | ||||||
JD Sports Fashion plc | 8,615 | 46,396 | ||||||
JINS, Inc. | 900 | 48,855 | ||||||
Joshin Denki Co. Ltd. | 5,800 | 240,110 | ||||||
Joyful Honda Co. Ltd. | 4,200 | 148,348 | ||||||
Kingfisher plc | 87,480 | 366,050 | ||||||
Kohnan Shoji Co. Ltd.(a) | 24,300 | 634,010 | ||||||
Komeri Co. Ltd. | 1,000 | 26,721 | ||||||
K’s Holdings Corp. | 6,000 | 86,744 | ||||||
Leon’s Furniture Ltd. | 21,951 | 290,751 | ||||||
LIXIL VIVA Corp. | 16,200 | 300,979 | ||||||
Luk Fook Holdings International Ltd. | 16,672 | 69,996 | ||||||
Maisons du Monde SA(c) | 2,216 | 90,174 | ||||||
Mekonomen AB* (a) | 22,842 | 350,611 | ||||||
Nishimatsuya Chain Co. Ltd. | 1,300 | 15,967 | ||||||
Nitori Holdings Co. Ltd. | 2,300 | 388,430 | ||||||
Nojima Corp. | 32,400 | 801,524 | ||||||
PAL GROUP Holdings Co. Ltd. | 9,800 | 268,677 | ||||||
Pets at Home Group plc(a) | 323,662 | 682,068 | ||||||
Premier Investments Ltd.(a) | 6,508 | 77,373 | ||||||
Sa Sa International Holdings Ltd. | 197,119 | 123,070 | ||||||
Shimachu Co. Ltd. | 9,500 | 306,900 | ||||||
Shimamura Co. Ltd. | 700 | 81,563 | ||||||
Sleep Country Canada Holdings, Inc.(c) | 1,952 | 53,690 | ||||||
Sports Direct International plc* | 25,620 | 142,139 | ||||||
Super Retail Group Ltd.(a) | 99,568 | 541,896 | ||||||
Superdry plc | 6,540 | 135,568 | ||||||
T-Gaia Corp.(a) | 7,600 | 212,529 | ||||||
United Arrows Ltd. | 4,400 | 162,248 | ||||||
USS Co. Ltd. | 6,200 | 130,374 | ||||||
Valora Holding AG (Registered)* | 185 | 62,047 | ||||||
VT Holdings Co. Ltd.(a) | 71,800 | 327,422 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 123 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
WH Smith plc | 3,320 | $ | 89,215 | |||||
Xebio Holdings Co. Ltd. | 5,000 | 94,357 | ||||||
Yamada Denki Co. Ltd. | 43,200 | 226,610 | ||||||
Yellow Hat Ltd. | 16,300 | 484,866 | ||||||
24,491,959 | ||||||||
Technology Hardware, Storage & Peripherals – 0.7% | ||||||||
Brother Industries Ltd. | 16,500 | 355,257 | ||||||
Canon, Inc. | 33,700 | 1,167,220 | ||||||
China Goldjoy Group Ltd. | 432,000 | 28,623 | ||||||
Eizo Corp. | 17,600 | 826,722 | ||||||
Elecom Co. Ltd. | 13,700 | 307,741 | ||||||
FUJIFILM Holdings Corp. | 24,300 | 978,218 | ||||||
Konica Minolta, Inc. | 27,000 | 231,940 | ||||||
Logitech International SA (Registered) | 3,669 | 136,693 | ||||||
Maxell Holdings Ltd. | 38,900 | 767,513 | ||||||
MCJ Co. Ltd.(a) | 32,400 | 430,816 | ||||||
Melco Holdings, Inc. | 8,100 | 297,944 | ||||||
NEC Corp. | 11,700 | 321,302 | ||||||
Neopost SA | 31,509 | 851,227 | ||||||
Ricoh Co. Ltd. | 19,300 | 188,899 | ||||||
Riso Kagaku Corp. | 1,700 | 34,054 | ||||||
S&T AG | 228 | 5,895 | ||||||
Seiko Epson Corp. | 16,400 | 307,992 | ||||||
Toshiba TEC Corp. | 19,000 | 108,695 | ||||||
7,346,751 | ||||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||
adidas AG | 5,670 | 1,396,816 | ||||||
Asics Corp.(a) | 12,200 | 231,011 | ||||||
Brunello Cucinelli SpA | 1,556 | 51,887 | ||||||
Burberry Group plc | 14,175 | 356,019 | ||||||
Canada Goose Holdings, Inc.* (a) | 1,976 | 73,270 | ||||||
Cie Financiere Richemont SA (Registered) | 16,362 | 1,562,977 | ||||||
Coats Group plc | 70,992 | 77,345 | ||||||
Delta-Galil Industries Ltd. | 8,505 | 244,189 | ||||||
Descente Ltd. | 2,800 | 47,313 | ||||||
Geox SpA | 2,964 | 9,991 | ||||||
Gildan Activewear, Inc. | 7,776 | 226,859 |
Investments | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Global Brands Group Holding Ltd.* | 4,508,000 | $ | 224,014 | |||||
Goldwin, Inc. | 1,200 | 75,888 | ||||||
Gunze Ltd. | 700 | 43,052 | ||||||
Hermes International | 956 | 618,870 | ||||||
HUGO BOSS AG | 1,634 | 153,593 | ||||||
Japan Wool Textile Co. Ltd. (The) | 60,500 | 630,848 | ||||||
Kering SA(a) | 2,349 | 1,361,134 | ||||||
Kurabo Industries Ltd. | 186,000 | 615,326 | ||||||
Li & Fung Ltd. | 272,000 | 137,590 | ||||||
Luxottica Group SpA | 5,589 | 349,516 | ||||||
LVMH Moet Hennessy Louis Vuitton SE(a) | 8,343 | 2,916,148 | ||||||
Moncler SpA | 3,061 | 138,464 | ||||||
Onward Holdings Co. Ltd. | 6,000 | 49,568 | ||||||
OVS SpA(c) | 142,074 | 605,938 | ||||||
Pacific Textiles Holdings Ltd. | 729,000 | 668,786 | ||||||
Pandora A/S(a) | 6,561 | 731,358 | ||||||
Puma SE | 13 | 6,353 | ||||||
Regina Miracle International Holdings Ltd.(a) (c) | 20,000 | 17,201 | ||||||
Salvatore Ferragamo SpA | 2,964 | 87,809 | ||||||
Samsonite International SA | 36,300 | 164,658 | ||||||
Seiko Holdings Corp. | 24,500 | 639,676 | ||||||
Seiren Co. Ltd. | 51,900 | 1,002,665 | ||||||
Stella International Holdings Ltd. | 434,000 | 512,621 | ||||||
Swatch Group AG (The)(a) | 600 | 290,029 | ||||||
Swatch Group AG (The) (Registered) | 1,997 | 178,840 | ||||||
Ted Baker plc | 3,685 | 135,212 | ||||||
Texwinca Holdings Ltd.(a) | 374,000 | 188,233 | ||||||
Tod’s SpA(a) | 1,055 | 81,578 | ||||||
TSI Holdings Co. Ltd. | 4,800 | 38,382 | ||||||
Wacoal Holdings Corp. | 1,500 | 45,511 | ||||||
Yondoshi Holdings, Inc. | 1,400 | 34,493 | ||||||
Yue Yuen Industrial Holdings Ltd. | 19,000 | 54,108 | ||||||
17,075,139 | ||||||||
Thrifts & Mortgage Finance – 0.7% | ||||||||
Aareal Bank AG | 52,731 | 2,642,674 |
See Accompanying Notes to the Financial Statements.
124 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Thrifts & Mortgage Finance – (continued) | ||||||||
Deutsche Pfandbriefbank AG(c) | 98,334 | $ | 1,596,768 | |||||
Equitable Group, Inc. | 9,396 | 424,522 | ||||||
First National Financial Corp.(a) | 11,421 | 236,536 | ||||||
Genworth MI Canada, Inc.(a) | 1,216 | 39,365 | ||||||
Genworth Mortgage Insurance Australia Ltd.(a) | 207,846 | 363,991 | ||||||
OneSavings Bank plc | 171,396 | 937,207 | ||||||
Paragon Banking Group plc | 197,802 | 1,424,875 | ||||||
7,665,938 | ||||||||
Tobacco – 0.7% | ||||||||
British American Tobacco plc | 72,981 | 4,019,810 | ||||||
Imperial Brands plc | 54,756 | 1,964,266 | ||||||
Japan Tobacco, Inc. | 34,400 | 923,149 | ||||||
Scandinavian Tobacco Group A/S(c) | 51,273 | 858,063 | ||||||
Swedish Match AB | 6,075 | 273,768 | ||||||
8,039,056 | ||||||||
Trading Companies & Distributors – 2.0% | ||||||||
AddTech AB, Class B | 4,329 | 90,412 | ||||||
Advan Co. Ltd. | 6,400 | 58,546 | ||||||
Ashtead Group plc | 15,876 | 444,552 | ||||||
BayWa AG | 12,312 | 430,642 | ||||||
Beijer Ref AB | 3,795 | 58,694 | ||||||
Bossard Holding AG (Registered), Class A | 174 | 35,823 | ||||||
Brenntag AG | 4,698 | 269,729 | ||||||
Bunzl plc | 7,372 | 214,347 | ||||||
Cramo OYJ | 29,346 | 690,680 | ||||||
Diploma plc | 5,549 | 92,173 | ||||||
Ferguson plc | 7,614 | 585,183 | ||||||
Finning International, Inc. | 4,307 | 108,821 | ||||||
Grafton Group plc | 31,914 | 330,555 | ||||||
Hanwa Co. Ltd. | 4,200 | 183,852 | ||||||
Howden Joinery Group plc | 34,204 | 224,577 | ||||||
IMCD NV | 2,440 | 150,496 | ||||||
Inaba Denki Sangyo Co. Ltd. | 1,000 | 42,815 | ||||||
Inabata & Co. Ltd.(a) | 12,200 | 187,306 | ||||||
Indutrade AB | 2,198 | 52,141 |
Investments | Shares | Value | ||||||
Trading Companies & Distributors – (continued) | ||||||||
ITOCHU Corp.(a) | 90,300 | $ | 1,810,539 | |||||
Iwatani Corp.(a) | 2,197 | 81,214 | ||||||
Japan Pulp & Paper Co. Ltd. | 9,600 | 399,177 | ||||||
Kanamoto Co. Ltd. | 33,523 | 1,150,367 | ||||||
Kanematsu Corp. | 87,800 | 1,344,782 | ||||||
Kloeckner & Co. SE | 5,624 | 68,629 | ||||||
Marubeni Corp. | 100,200 | 754,716 | ||||||
MISUMI Group, Inc. | 8,600 | 238,136 | ||||||
Mitani Corp. | 13,300 | 632,031 | ||||||
Mitsubishi Corp. | 89,700 | 2,481,352 | ||||||
Mitsui & Co. Ltd. | 98,000 | 1,770,135 | ||||||
MonotaRO Co. Ltd.(a) | 1,400 | 48,938 | ||||||
Nagase & Co. Ltd. | 4,900 | 83,872 | ||||||
Nippon Steel & Sumikin Bussan Corp. | 600 | 32,954 | ||||||
Nishio Rent All Co. Ltd. | 17,300 | 515,403 | ||||||
Ramirent OYJ | 65,934 | 575,952 | ||||||
Reece Ltd.(a) | 5,500 | 44,008 | ||||||
Rexel SA | 17,577 | 272,889 | ||||||
Richelieu Hardware Ltd. | 5,260 | 113,698 | ||||||
Russel Metals, Inc. | 53,541 | 1,218,711 | ||||||
Seven Group Holdings Ltd.(a) | 10,640 | 146,416 | ||||||
SIG plc | 432,054 | 850,383 | ||||||
Sojitz Corp. | 66,500 | 219,388 | ||||||
Sumitomo Corp. | 67,100 | 1,207,708 | ||||||
Tai United Holdings Ltd. | 1,140,000 | 116,204 | ||||||
Toromont Industries Ltd. | 3,554 | 155,889 | ||||||
Toyota Tsusho Corp. | 17,100 | 614,928 | ||||||
Travis Perkins plc(a) | 13,689 | 239,264 | ||||||
Yamazen Corp. | 83,200 | 842,455 | ||||||
22,281,482 | ||||||||
Transportation Infrastructure – 0.5% | ||||||||
Abertis Infraestructuras SA | 20,574 | 453,898 | ||||||
Aena SME SA(c) | 2,430 | 502,337 | ||||||
Aeroports de Paris | 1,493 | 329,021 | ||||||
Ansaldo STS SpA* | 2,145 | 32,136 | ||||||
ASTM SpA | 8,343 | 230,328 | ||||||
Atlantia SpA | 12,798 | 425,220 | ||||||
Auckland International Airport Ltd. | 22,540 | 101,325 | ||||||
BBA Aviation plc | 32,469 | 143,018 | ||||||
Enav SpA(c) | 12,657 | 69,182 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 125 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Flughafen Zurich AG (Registered) | 461 | $ | 96,866 | |||||
Fraport AG Frankfurt Airport Services Worldwide | 880 | 85,483 | ||||||
Getlink SE | 16,112 | 227,564 | ||||||
Hamburger Hafen und Logistik AG | 1,220 | 29,436 | ||||||
Hong Kong Aircraft Engineering Co. Ltd. | 35,200 | 201,828 | ||||||
Kamigumi Co. Ltd. | 6,500 | 146,722 | ||||||
Macquarie Atlas Roads Group(a) | 22,838 | 110,848 | ||||||
Mitsubishi Logistics Corp.(a) | 2,900 | 67,103 | ||||||
Nissin Corp. | 16,200 | 420,600 | ||||||
Port of Tauranga Ltd. | 5,225 | 18,003 | ||||||
Qube Holdings Ltd.(a) | 18,012 | 31,272 | ||||||
SATS Ltd. | 19,000 | 79,499 | ||||||
Societa Iniziative Autostradali e Servizi SpA | 4,167 | 88,608 | ||||||
Sumitomo Warehouse Co. Ltd. (The) | 123,000 | 844,167 | ||||||
Sydney Airport | 30,020 | 161,570 | ||||||
Transurban Group | 69,789 | 611,091 | ||||||
Westshore Terminals Investment Corp. | 5,020 | 86,816 | ||||||
5,593,941 | ||||||||
Water Utilities – 0.0%(e) | ||||||||
Pennon Group plc | 22,842 | 217,776 | ||||||
Severn Trent plc | 1,632 | 43,608 | ||||||
United Utilities Group plc | 31,509 | 322,541 | ||||||
583,925 | ||||||||
Wireless Telecommunication Services – 0.8% | ||||||||
1&1 Drillisch AG | 979 | 71,088 | ||||||
Cellcom Israel Ltd.* | 5,408 | 37,051 | ||||||
Freenet AG | 8,019 | 255,003 | ||||||
KDDI Corp. | 58,600 | 1,572,842 | ||||||
M1 Ltd.(a) | 307,800 | 420,768 | ||||||
Millicom International Cellular SA, SDR | 1,468 | 98,057 | ||||||
NTT DOCOMO, Inc. | 42,800 | 1,108,869 |
Investments | Shares | Value | ||||||
Wireless Telecommunication Services – (continued) | ||||||||
Okinawa Cellular Telephone Co. | 11,000 | $ | 410,144 | |||||
Orange Belgium SA | 3,344 | 69,573 | ||||||
Partner Communications Co. Ltd.* | 8,040 | 33,207 | ||||||
Rogers Communications, Inc., Class B | 10,287 | 486,365 | ||||||
SmarTone Telecommunications Holdings Ltd. | 166,740 | 176,762 | ||||||
SoftBank Group Corp. | 27,641 | 2,147,372 | ||||||
Tele2 AB, Class B | 8,165 | 106,463 | ||||||
Vodafone Group plc | 853,011 | 2,486,077 | ||||||
9,479,641 | ||||||||
Total Common Stocks (Cost $926,758,765) | 1,095,213,127 | |||||||
CLOSED END FUNDS – 0.1% | ||||||||
Capital Markets – 0.1% | ||||||||
HBM Healthcare Investments AG Class A* (Cost $595,252) | 5,589 | 880,780 | ||||||
Number of Rights | ||||||||
RIGHTS – 0.0%(e) | ||||||||
Construction Materials – 0.0%(e) | ||||||||
Breedon Group plc, expiring 5/9/2018, price 0.77 GBP* (b) | 256 | 26 | ||||||
Hotels, Restaurants & Leisure – 0.0%(e) | ||||||||
GVC Holdings plc, CVR* ‡ (b) | 96,369 | 19,910 | ||||||
Total Rights (Cost $–) | 19,936 | |||||||
Shares | ||||||||
INVESTMENT COMPANIES – 0.0%(e) | ||||||||
OceanaGold Corp.* | 1,000 | 2,699 |
See Accompanying Notes to the Financial Statements.
126 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(f) – 1.5% | ||||||||
REPURCHASE AGREEMENTS – 1.5% | ||||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $1,000,054, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $1,091,258 | $ | 1,000,000 | $ | 1,000,000 | ||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $5,242,579, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $5,314,577 | 5,242,330 | 5,242,330 | ||||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $2,000,108, collateralized by various Common Stocks; total market value $2,236,976 | 2,000,000 | 2,000,000 | ||||||
Mizuho Securities USA, Inc., 1.72%, dated 4/30/2018, due 5/1/2018, repurchase price $5,000,239, collateralized by various U.S. Treasury Securities, ranging from 1.00% – 2.75%, maturing 6/30/2019 – 2/15/2028; total market value $5,081,377 | 5,000,000 | 5,000,000 |
Investments | Principal Amount | Value | ||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $3,000,155, collateralized by various Common Stocks; total market value $3,313,816 | $ | 3,000,000 | $ | 3,000,000 | ||||
16,242,330 | ||||||||
Total Securities Lending Reinvestments (Cost $16,242,330) | 16,242,330 | |||||||
Total Investments – 99.7% (Cost $943,599,480) | 1,112,358,872 | |||||||
Other Assets Less Liabilities – 0.3% |
| 3,571,297 | ||||||
NET ASSETS – 100.0% | $ | 1,115,930,169 |
* | Non-income producing security. |
‡ | Value determined using significant unobservable inputs. |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $90,403,397, collateralized in the form of cash with a value of $16,242,330 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $21,382,700 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.13%, and maturity dates ranging from May 17, 2018 – November 15, 2047 and $59,328,928 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from May 8, 2018 – November 2, 2086; a total value of $96,953,958. |
(b) | Security fair valued as of April 30, 2018 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2018 amounted to $299,722, which represents approximately 0.03% of net assets of the Fund. |
(c) | 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. |
(d) | 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. |
(e) | Represents less than 0.05% of net assets. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 127 |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)
(f) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $16,242,330. |
Percentages shown are based on Net Assets.
Abbreviations
CHDI – Clearing House Electronic Subregister System (CHESS) Depository Interest
CVA – Dutch Certification
CVR – Contingent Value Rights
DI – Depositary Interest
FDR – Fiduciary Depositary Receipt
GBP – British Pound
OYJ – Public Limited Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SCA – Limited partnership with share capital
SDR – Swedish Depositary Receipt
As of April 30, 2018, 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 | $ | 191,399,121 | ||
Aggregate gross unrealized depreciation | (32,602,239 | ) | ||
Net unrealized appreciation | $ | 158,796,882 | ||
Federal income tax cost | $ | 954,277,296 |
Futures Contracts
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation* | ||||||||||||||||
Long Contracts | ||||||||||||||||||||
EURO STOXX 50 Index | 161 | 06/15/2018 | EUR | $ | 6,757,632 | $ | 262,200 | |||||||||||||
FTSE 100 Index | 38 | 06/15/2018 | GBP | 3,904,512 | 176,702 | |||||||||||||||
Hang Seng Index | 3 | 05/30/2018 | HKD | 586,086 | 7,600 | |||||||||||||||
S&P/TSX 60 Index | 16 | 06/14/2018 | CAD | 2,296,252 | 30,311 | |||||||||||||||
SGX Nikkei 225 Index | 55 | 06/07/2018 | JPY | 5,658,327 | 332,418 | |||||||||||||||
SPI 200 Index | 16 | 06/21/2018 | AUD | 1,801,374 | 20,747 | |||||||||||||||
$ | 829,978 |
* | 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 April 30, 2018:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
CAD | 825,668 | Morgan Stanley | USD | 635,297 | 06/20/2018 | $ | 9,542 | |||||||||||||||
USD | 570,000 | Toronto-Dominion Bank (The) | AUD | 736,823 | 06/20/2018 | 13,726 | ||||||||||||||||
USD | 540,000 | Toronto-Dominion Bank (The) | CAD | 678,153 | 06/20/2018 | 10,368 | ||||||||||||||||
USD | 250,000 | Toronto-Dominion Bank (The) | CHF | 236,400 | 06/20/2018 | 10,137 | ||||||||||||||||
USD | 390,000 | Citibank NA | DKK | 2,338,011 | 06/20/2018 | 9,371 | ||||||||||||||||
USD | 741,600 | Toronto-Dominion Bank (The) | EUR | 592,347 | 06/20/2018 | 23,175 | ||||||||||||||||
USD | 2,008,000 | Toronto-Dominion Bank (The) | JPY | 211,299,547 | 06/20/2018 | 70,326 | ||||||||||||||||
USD | 2,926 | Citibank NA | SGD | 3,828 | 06/20/2018 | 32 | ||||||||||||||||
Total unrealized appreciation | $ | 146,677 |
See Accompanying Notes to the Financial Statements.
128 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index (cont.)
Forward Foreign Currency Contracts (cont.) | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
AUD | 391,851 | Citibank NA | USD | 306,795 | 06/20/2018 | $ | (10,962 | ) | ||||||||||||||
CHF | 251,408 | Citibank NA | USD | 267,360 | 06/20/2018 | (12,269 | ) | |||||||||||||||
EUR | 1,635,864 | Citibank NA | USD | 2,033,655 | 06/20/2018 | (49,607 | ) | |||||||||||||||
EUR | 1,127,135 | Toronto-Dominion Bank (The) | USD | 1,400,000 | 06/20/2018 | (32,960 | ) | |||||||||||||||
GBP | 175,950 | Bank of New York | USD | 250,000 | 06/20/2018 | (7,065 | ) | |||||||||||||||
GBP | 192,963 | Societe Generale | USD | 270,366 | 06/20/2018 | (3,941 | ) | |||||||||||||||
GBP | 636,235 | Toronto-Dominion Bank (The) | USD | 900,000 | 06/20/2018 | (21,546 | ) | |||||||||||||||
JPY | 76,316,590 | Bank of Montreal | USD | 700,000 | 06/20/2018 | (157 | ) | |||||||||||||||
JPY | 329,922,784 | Citibank NA | USD | 3,130,982 | 06/20/2018 | (105,501 | ) | |||||||||||||||
JPY | 64,099,320 | Toronto-Dominion Bank (The) | USD | 600,000 | 06/20/2018 | (12,192 | ) | |||||||||||||||
SEK | 618,850 | Societe Generale | USD | 76,208 | 06/20/2018 | (5,149 | ) | |||||||||||||||
Total unrealized depreciation | $ | (261,349 | ) | |||||||||||||||||||
Net unrealized depreciation |
| $ | (114,672 | ) |
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
DKK – Danish Krone
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
JPY – Japanese Yen
SEK – Swedish Krona
SGD – Singapore Dollar
USD – US Dollar
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 5.8 | % | ||
Austria | 0.5 | |||
Belgium | 1.0 | |||
Canada | 8.3 | |||
Denmark | 1.1 | |||
Finland | 1.1 | |||
France | 7.2 | |||
Germany | 7.3 | |||
Hong Kong | 2.9 | |||
Ireland | 0.4 | |||
Israel | 0.9 | |||
Italy | 2.5 | |||
Japan | 26.7 | |||
Netherlands | 2.6 | |||
New Zealand | 0.4 | |||
Norway | 1.1 | |||
Portugal | 0.4 | |||
Singapore | 1.4 | |||
Spain | 3.0 | |||
Sweden | 2.7 | |||
Switzerland | 4.8 | |||
United Kingdom | 16.1 | |||
Other1 | 1.8 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 129 |
Table of Contents
Schedule of Investments
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.2% | ||||||||
Aerospace & Defense – 0.1% | ||||||||
Aselsan Elektronik Sanayi ve Ticaret A/S | 8,008 | $ | 49,641 | |||||
AviChina Industry & Technology Co. Ltd., Class H | 60,000 | 38,149 | ||||||
Bharat Electronics Ltd. | 37,920 | 74,545 | ||||||
Embraer SA | 41,200 | 261,538 | ||||||
Hanwha Aerospace Co. Ltd.* | 1,767 | 39,871 | ||||||
Korea Aerospace Industries Ltd.* | 3,648 | 147,553 | ||||||
LIG Nex1 Co. Ltd. | 430 | 15,923 | ||||||
United Aircraft Corp. PJSC* ^ | 25,155,036 | 269,622 | ||||||
896,842 | ||||||||
Air Freight & Logistics – 0.4% | ||||||||
Allcargo Logistics Ltd. | 3,182 | 6,665 | ||||||
Aramex PJSC | 24,595 | 27,118 | ||||||
Blue Dart Express Ltd. | 318 | 17,576 | ||||||
GD Express Carrier Bhd. | 51,838 | 6,606 | ||||||
Gulf Warehousing Co. | 1,548 | 18,180 | ||||||
Hyundai Glovis Co. Ltd. | 2,760 | 435,429 | ||||||
Kerry TJ Logistics Co. Ltd. | 14,000 | 19,022 | ||||||
Pos Malaysia Bhd. | 20,800 | 19,562 | ||||||
Sinotrans Ltd., Class H | 3,888,000 | 2,244,149 | ||||||
2,794,307 | ||||||||
Airlines – 0.6% | ||||||||
Aegean Airlines SA | 1,456 | 16,448 | ||||||
Aeroflot PJSC | 71,160 | 162,714 | ||||||
Air Arabia PJSC | 286,680 | 95,218 | ||||||
Air China Ltd., Class H | 240,000 | 320,479 | ||||||
AirAsia Bhd. | 200,600 | 196,842 | ||||||
Asiana Airlines, Inc.* | 186,600 | 925,968 | ||||||
Azul SA (Preference)* | 12,000 | 125,240 | ||||||
Bangkok Airways PCL, NVDR | 52,000 | 25,044 | ||||||
Cebu Air, Inc. | 375,600 | 642,337 | ||||||
China Airlines Ltd.* | 360,000 | 132,020 | ||||||
China Eastern Airlines Corp. Ltd., Class H | 176,000 | 146,662 | ||||||
China Southern Airlines Co. Ltd., Class H | 240,000 | 259,931 |
Investments | Shares | Value | ||||||
Airlines – (continued) | ||||||||
Controladora Vuela Cia de Aviacion SAB de CV, Class A* (a) | 23,900 | $ | 14,875 | |||||
Eva Airways Corp. | 104,000 | 56,066 | ||||||
Gol Linhas Aereas Inteligentes SA (Preference)* | 3,500 | 19,489 | ||||||
Grupo Aeromexico SAB de CV* | 10,400 | 14,480 | ||||||
Hanjin Kal Corp. | 5,520 | 126,623 | ||||||
InterGlobe Aviation Ltd.(b) | 5,040 | 105,935 | ||||||
Jeju Air Co. Ltd. | 172 | 7,883 | ||||||
Jet Airways India Ltd.* | 1,248 | 12,028 | ||||||
Korean Air Lines Co. Ltd. | 6,000 | 191,845 | ||||||
Latam Airlines Group SA | 23,040 | 354,285 | ||||||
SpiceJet Ltd.* | 7,072 | 13,744 | ||||||
Thai Airways International PCL, NVDR* | 31,200 | 16,015 | ||||||
Turk Hava Yollari AO* | 90,120 | 370,434 | ||||||
4,352,605 | ||||||||
Auto Components – 1.5% | ||||||||
Actron Technology Corp.* | 3,000 | 10,545 | ||||||
Apollo Tyres Ltd. | 14,352 | 63,298 | ||||||
Asahi India Glass Ltd. | 3,952 | 21,513 | ||||||
Balkrishna Industries Ltd. | 5,520 | 105,470 | ||||||
Bharat Forge Ltd. | 11,640 | 135,114 | ||||||
Bosch Ltd. | 480 | 139,561 | ||||||
Cayman Engley Industrial Co. Ltd. | 1,000 | 5,104 | ||||||
Ceat Ltd. | 936 | 22,305 | ||||||
Chaowei Power Holdings Ltd.(a) | 1,080,000 | 606,861 | ||||||
Cheng Shin Rubber Industry Co. Ltd. | 120,000 | 194,278 | ||||||
China First Capital Group Ltd.* | 158,000 | 144,345 | ||||||
Cub Elecparts, Inc. | 2,489 | 32,178 | ||||||
Depo Auto Parts Ind Co. Ltd. | 200,000 | 541,463 | ||||||
Endurance Technologies Ltd.(b) | 1,456 | 27,794 | ||||||
Exide Industries Ltd. | 15,469 | 57,551 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class H(b) | 27,600 | 95,127 | ||||||
Global PMX Co. Ltd. | 1,000 | 6,033 |
See Accompanying Notes to the Financial Statements.
130 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Auto Components – (continued) | ||||||||
Halla Holdings Corp. | 14,400 | $ | 690,305 | |||||
Hankook Tire Co. Ltd. | 9,960 | 461,141 | ||||||
Hanon Systems | 9,600 | 97,973 | ||||||
Hiroca Holdings Ltd. | 10,000 | 34,813 | ||||||
Hota Industrial Manufacturing Co. Ltd. | 9,826 | 43,839 | ||||||
Hu Lane Associate, Inc. | 3,000 | 14,145 | ||||||
Hyundai Mobis Co. Ltd. | 8,760 | 2,034,062 | ||||||
Hyundai Wia Corp. | 2,040 | 102,568 | ||||||
Iron Force Industrial Co. Ltd. | 3,060 | 9,267 | ||||||
Kenda Rubber Industrial Co. Ltd. | 29,307 | 33,926 | ||||||
Kumho Tire Co., Inc.* | 3,552 | 20,686 | ||||||
Macauto Industrial Co. Ltd. | 6,000 | 28,290 | ||||||
Mahindra CIE Automotive Ltd.* | 6,379 | 23,881 | ||||||
Mando Corp. | 360 | 76,513 | ||||||
Minda Industries Ltd. | 1,718 | 28,397 | ||||||
Minth Group Ltd. | 42,000 | 200,682 | ||||||
Motherson Sumi Systems Ltd. | 38,760 | 204,834 | ||||||
MRF Ltd. | 36 | 43,117 | ||||||
Nan Kang Rubber Tire Co. Ltd. | 20,000 | 16,900 | ||||||
Nemak SAB de CV(b) | 62,400 | 46,878 | ||||||
Nexen Corp. | 41,280 | 277,893 | ||||||
Nexen Tire Corp. | 3,532 | 39,849 | ||||||
Nexteer Automotive Group Ltd.* | 44,000 | 68,734 | ||||||
S&T Motiv Co. Ltd. | 16,440 | 504,875 | ||||||
Sebang Global Battery Co. Ltd. | 11,640 | 354,197 | ||||||
SL Corp. | 25,920 | 538,761 | ||||||
Sri Trang Agro-Industry PCL, NVDR | 20,800 | 7,777 | ||||||
Sundaram-Clayton Ltd. | 312 | 23,678 | ||||||
Sundram Fasteners Ltd. | 3,224 | 28,844 | ||||||
Tianneng Power International Ltd. | 1,296,000 | 1,882,509 | ||||||
Tong Yang Industry Co. Ltd. | 27,400 | 49,639 | ||||||
Tung Thih Electronic Co. Ltd. | 3,000 | 11,052 | ||||||
Tupy SA | 3,600 | 19,509 | ||||||
TYC Brother Industrial Co. Ltd. | 309,000 | 306,530 | ||||||
WABCO India Ltd. | 172 | 20,882 | ||||||
10,555,486 |
Investments | Shares | Value | ||||||
Automobiles – 2.0% | ||||||||
Astra International Tbk. PT | 1,200,000 | $ | 616,712 | |||||
BAIC Motor Corp. Ltd., Class H(a) (b) | 120,000 | 117,122 | ||||||
Bajaj Auto Ltd. | 3,720 | 164,574 | ||||||
Brilliance China Automotive Holdings Ltd. | 174,000 | 313,935 | ||||||
BYD Co. Ltd., Class H(a) | 39,500 | 277,568 | ||||||
China Motor Corp. | 61,000 | 57,626 | ||||||
Chongqing Changan Automobile Co. Ltd., Class B | 1,632,000 | 1,530,471 | ||||||
Dongfeng Motor Group Co. Ltd., Class H | 346,000 | 384,873 | ||||||
DRB-Hicom Bhd. | 1,164,000 | 643,782 | ||||||
Ford Otomotiv Sanayi A/S | 3,527 | 48,716 | ||||||
Geely Automobile Holdings Ltd. | 291,000 | 778,645 | ||||||
Great Wall Motor Co. Ltd., Class H(a) | 388,500 | 407,397 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H(a) | 256,000 | 472,972 | ||||||
Hero MotoCorp Ltd. | 6,000 | 335,533 | ||||||
Honda Atlas Cars Pakistan Ltd. | 6,300 | 26,248 | ||||||
Hyundai Motor Co. | 18,960 | 2,840,316 | ||||||
Hyundai Motor Co. (2nd Preference) | 4,560 | 490,988 | ||||||
Hyundai Motor Co. (3rd Preference) | 312 | 26,641 | ||||||
Hyundai Motor Co. (Preference) | 2,520 | 243,022 | ||||||
Jiangling Motors Corp. Ltd., Class B | 120,000 | 166,203 | ||||||
Kia Motors Corp. | 33,720 | 1,045,019 | ||||||
Mahindra & Mahindra Ltd. | 36,720 | 480,485 | ||||||
Maruti Suzuki India Ltd. | 7,200 | 950,969 | ||||||
Oriental Holdings Bhd. | 10,400 | 16,620 | ||||||
Sanyang Motor Co. Ltd. | 1,230,000 | 881,348 | ||||||
Ssangyong Motor Co.* | 70,320 | 332,490 | ||||||
Tata Motors Ltd.* | 60,120 | 306,635 | ||||||
Tata Motors Ltd., Class A* | 25,527 | 73,246 | ||||||
Tofas Turk Otomobil Fabrikasi A/S | 6,639 | 40,860 | ||||||
TVS Motor Co. Ltd. | 7,446 | 74,460 | ||||||
UMW Holdings Bhd.* | 20,800 | 32,392 | ||||||
Yadea Group Holdings Ltd.(b) | 40,000 | 13,761 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 131 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Automobiles – (continued) | ||||||||
Yulon Motor Co. Ltd. | 120,000 | $ | 91,866 | |||||
Yulon Nissan Motor Co. Ltd. | 8,000 | 69,221 | ||||||
14,352,716 | ||||||||
Banks – 17.4% | ||||||||
Abu Dhabi Commercial Bank PJSC | 196,320 | 375,735 | ||||||
AFFIN Holdings Bhd. | 37,910 | 24,349 | ||||||
Agricultural Bank of China Ltd., Class H | 3,360,000 | 1,909,419 | ||||||
Akbank Turk A/S | 258,408 | 537,761 | ||||||
Akbank Turk A/S, ADR | 20,016 | 83,166 | ||||||
Al Khalij Commercial Bank PQSC | 275,070 | 832,538 | ||||||
Alior Bank SA* | 7,920 | 160,604 | ||||||
Allahabad Bank* | 6,448 | 4,744 | ||||||
Alliance Bank Malaysia Bhd. | 108,000 | 119,740 | ||||||
Alpha Bank AE* | 81,960 | 216,863 | ||||||
AMMB Holdings Bhd. | 180,000 | 178,922 | ||||||
Andhra Bank* | 8,008 | 4,770 | ||||||
Axis Bank Ltd. | 106,837 | 828,091 | ||||||
Banco Bradesco SA* | 109,160 | 998,424 | ||||||
Banco Bradesco SA (Preference)* | 422,360 | 4,186,422 | ||||||
Banco Davivienda SA (Preference) | 196,080 | 2,356,682 | ||||||
Banco de Bogota SA | 12,360 | 305,822 | ||||||
Banco de Chile | 1,584,840 | 262,421 | ||||||
Banco de Credito e Inversiones SA | 2,785 | 210,933 | ||||||
Banco del Bajio SA(b) | 10,400 | 22,088 | ||||||
Banco do Brasil SA* | 136,800 | 1,439,505 | ||||||
Banco do Estado do Rio Grande do Sul SA (Preference), Class B | 316,500 | 1,823,117 | ||||||
Banco Santander Brasil SA | 24,000 | 262,247 | ||||||
Banco Santander Chile | 3,806,760 | 316,877 | ||||||
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand, Class B | 96,000 | 141,683 | ||||||
Bancolombia SA | 34,680 | 409,904 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Bancolombia SA (Preference) | 57,000 | $ | 675,747 | |||||
Bangkok Bank PCL, NVDR | 48,500 | 296,594 | ||||||
Bank Al Habib Ltd. | 52,000 | 33,255 | ||||||
Bank Alfalah Ltd. | 1,380,000 | 619,370 | ||||||
Bank Central Asia Tbk. PT | 660,000 | 1,048,410 | ||||||
Bank Danamon Indonesia Tbk. PT | 135,200 | 64,624 | ||||||
Bank Handlowy w Warszawie SA | 2,012 | 47,662 | ||||||
Bank Mandiri Persero Tbk. PT | 1,116,000 | 571,536 | ||||||
Bank Millennium SA* | 25,240 | 61,592 | ||||||
Bank Negara Indonesia Persero Tbk. PT | 444,000 | 256,906 | ||||||
Bank of Ayudhya PCL, NVDR | 101,000 | 125,610 | ||||||
Bank of Baroda | 24,440 | 54,545 | ||||||
Bank of China Ltd., Class H | 9,600,000 | 5,259,771 | ||||||
Bank of Chongqing Co. Ltd., Class H | 999,000 | 759,918 | ||||||
Bank of Communications Co. Ltd., Class H | 2,686,000 | 2,210,883 | ||||||
Bank of India* | 13,000 | 20,267 | ||||||
Bank of the Philippine Islands | 113,473 | 230,237 | ||||||
Bank of Zhengzhou Co. Ltd., Class H(b) | 1,800,000 | 908,228 | ||||||
Bank Pan Indonesia Tbk. PT* | 325,900 | 22,137 | ||||||
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk. PT | 249,600 | 36,958 | ||||||
Bank Pembangunan Daerah Jawa Timur Tbk. PT | 13,404,000 | 688,867 | ||||||
Bank Permata Tbk. PT* | 5,484,000 | 218,769 | ||||||
Bank Polska Kasa Opieki SA | 9,480 | 316,293 | ||||||
Bank Rakyat Indonesia Persero Tbk. PT | 3,156,000 | 730,445 | ||||||
Bank Tabungan Negara Persero Tbk. PT | 552,000 | 123,394 | ||||||
Bank Zachodni WBK SA | 1,920 | 203,521 | ||||||
Barclays Africa Group Ltd. | 53,160 | 779,233 | ||||||
BDO Unibank, Inc. | 105,600 | 268,747 | ||||||
BIMB Holdings Bhd. | 14,180 | 15,143 | ||||||
BNK Financial Group, Inc. | 29,520 | 288,829 | ||||||
BOC Hong Kong Holdings Ltd. | 209,000 | 1,087,841 | ||||||
Canara Bank | 6,552 | 26,109 | ||||||
Capitec Bank Holdings Ltd. | 3,720 | 264,947 |
See Accompanying Notes to the Financial Statements.
132 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Central Bank of India* | 39,520 | $ | 41,598 | |||||
Chang Hwa Commercial Bank Ltd. | 312,668 | 180,712 | ||||||
China Banking Corp. | 51,084 | 34,303 | ||||||
China CITIC Bank Corp. Ltd., Class H | 1,477,000 | 1,065,183 | ||||||
China Construction Bank Corp., Class H | 13,640,000 | 14,459,886 | ||||||
China Development Financial Holding Corp. | 840,000 | 319,402 | ||||||
China Everbright Bank Co. Ltd., Class H | 406,000 | 204,339 | ||||||
China Merchants Bank Co. Ltd., Class H | 480,000 | 2,116,141 | ||||||
China Minsheng Banking Corp. Ltd., Class H(a) | 780,000 | 735,451 | ||||||
China Zheshang Bank Co. Ltd., Class H | 136,000 | 83,178 | ||||||
Chong Hing Bank Ltd. | 301,000 | 610,572 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H | 309,000 | 238,200 | ||||||
CIMB Group Holdings Bhd. | 293,310 | 538,252 | ||||||
City Union Bank Ltd. | 8,796 | 24,231 | ||||||
Commercial Bank PQSC (The) | 25,200 | 250,200 | ||||||
Commercial International Bank Egypt SAE | 64,680 | 344,141 | ||||||
Corp. Bank* | 9,672 | 4,362 | ||||||
Credicorp Ltd. | 4,124 | 958,789 | ||||||
Credit Agricole Egypt SAE | 11,960 | 31,184 | ||||||
Credit Bank of Moscow PJSC* | 844,272 | 61,937 | ||||||
CTBC Financial Holding Co. Ltd. | 2,448,000 | 1,758,234 | ||||||
DCB Bank Ltd. | 1,720 | 5,028 | ||||||
DGB Financial Group, Inc. | 19,920 | 223,810 | ||||||
Doha Bank QPSC | 19,344 | 143,924 | ||||||
Dubai Islamic Bank PJSC | 154,080 | 230,712 | ||||||
E.Sun Financial Holding Co. Ltd. | 566,200 | 401,879 | ||||||
East West Banking Corp. | 31,200 | 10,478 | ||||||
Eurobank Ergasias SA* | 231,480 | 293,378 | ||||||
Far Eastern International Bank | 366,555 | 123,273 | ||||||
Federal Bank Ltd. | 92,280 | 135,917 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
First Abu Dhabi Bank PJSC | 160,080 | $ | 540,406 | |||||
First Financial Holding Co. Ltd. | 600,000 | 413,702 | ||||||
Grupo Aval Acciones y Valores SA (Preference) | 495,240 | 217,745 | ||||||
Grupo Elektra SAB de CV(a) | 3,600 | 97,754 | ||||||
Grupo Financiero Banorte SAB de CV, Class O | 163,100 | 1,016,176 | ||||||
Grupo Financiero Inbursa SAB de CV, Class O | 132,000 | 218,991 | ||||||
Grupo Financiero Interacciones SA de CV, Class O | 156,000 | 763,798 | ||||||
Grupo Security SA | 129,688 | 66,146 | ||||||
Guangzhou Rural Commercial Bank Co. Ltd., Class H* (b) | 1,361,000 | 920,831 | ||||||
Habib Bank Ltd. | 84,000 | 141,514 | ||||||
Hana Financial Group, Inc. | 37,080 | 1,657,759 | ||||||
Harbin Bank Co. Ltd., Class H(b) | 5,520,000 | 1,505,151 | ||||||
Hong Leong Bank Bhd. | 36,000 | 174,334 | ||||||
Hong Leong Financial Group Bhd. | 12,600 | 62,558 | ||||||
Hua Nan Financial Holdings Co. Ltd. | 514,911 | 312,394 | ||||||
Huishang Bank Corp. Ltd., Class H | 86,000 | 41,640 | ||||||
ICICI Bank Ltd. | 185,571 | 790,220 | ||||||
IDBI Bank Ltd.* | 75,601 | 74,933 | ||||||
IDFC Bank Ltd. | 56,935 | 41,247 | ||||||
Indian Bank | 9,984 | 48,095 | ||||||
Indian Overseas Bank* | 884,760 | 243,263 | ||||||
IndusInd Bank Ltd. | 17,640 | 501,659 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 9,840,000 | 8,751,403 | ||||||
Industrial Bank of Korea | 33,960 | 535,767 | ||||||
ING Bank Slaski SA | 2,040 | 114,700 | ||||||
Intercorp Financial Services, Inc.(b) | 1,040 | 44,502 | ||||||
Itau CorpBanca | 12,999,000 | 133,237 | ||||||
Itau Unibanco Holding SA (Preference) | 412,200 | 6,028,707 | ||||||
Itausa – Investimentos Itau SA | 48,000 | 191,989 | ||||||
Itausa – Investimentos Itau SA – P-RCT* | 5,546 | 21,467 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 133 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Itausa – Investimentos Itau SA – RCT* | 1,109 | $ | 4,512 | |||||
Itausa – Investimentos Itau SA (Preference) | 240,000 | 936,548 | ||||||
Jammu & Kashmir Bank Ltd. (The)* | 417,120 | 355,933 | ||||||
JB Financial Group Co. Ltd. | 217,440 | 1,252,054 | ||||||
Karnataka Bank Ltd. (The) | 254,880 | 467,255 | ||||||
Karur Vysya Bank Ltd. (The) | 12,376 | 20,194 | ||||||
Kasikornbank PCL, NVDR | 66,100 | 409,460 | ||||||
KB Financial Group, Inc. | 50,159 | 2,874,152 | ||||||
Kiatnakin Bank PCL, NVDR | 48,000 | 112,167 | ||||||
King’s Town Bank Co. Ltd. | 120,000 | 144,390 | ||||||
Komercni banka A/S | 4,440 | 192,145 | ||||||
Kotak Mahindra Bank Ltd. | 48,000 | 871,034 | ||||||
Krung Thai Bank PCL, NVDR | 444,000 | 256,046 | ||||||
Kwangju Bank Co. Ltd. | 39,120 | 410,228 | ||||||
LH Financial Group PCL, NVDR | 290,449 | 14,817 | ||||||
Malayan Banking Bhd. | 292,656 | 804,086 | ||||||
Masraf Al Rayan QSC | 21,960 | 214,594 | ||||||
mBank SA* | 840 | 102,946 | ||||||
MCB Bank Ltd. | 60,000 | 108,428 | ||||||
Mega Financial Holding Co. Ltd. | 620,000 | 550,082 | ||||||
Metropolitan Bank & Trust Co. | 94,774 | 155,669 | ||||||
Moneta Money Bank A/S(b) | 17,472 | 63,051 | ||||||
National Bank of Greece SA* | 321,774 | 134,514 | ||||||
National Bank of Pakistan* | 52,000 | 22,817 | ||||||
Nedbank Group Ltd.(a) | 28,080 | 669,106 | ||||||
O-Bank Co. Ltd. | 265,000 | 77,476 | ||||||
Oriental Bank of Commerce* | 228,480 | 321,289 | ||||||
OTP Bank Nyrt | 12,480 | 545,898 | ||||||
Philippine National Bank* | 907,870 | 921,036 | ||||||
Piraeus Bank SA* | 41,040 | 174,141 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(b) | 480,000 | 331,488 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA* | 51,360 | 613,315 | ||||||
Public Bank Bhd. | 147,400 | 894,130 | ||||||
Punjab National Bank* | 22,568 | 32,259 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Qatar International Islamic Bank QSC | 2,042 | $ | 31,855 | |||||
Qatar Islamic Bank SAQ | 3,523 | 103,542 | ||||||
Qatar National Bank QPSC | 13,560 | 562,362 | ||||||
RBL Bank Ltd.(b) | 6,656 | 52,912 | ||||||
Regional SAB de CV | 4,800 | 30,535 | ||||||
RHB Bank Bhd. | 205,267 | 277,282 | ||||||
Rizal Commercial Banking Corp. | 31,200 | 23,513 | ||||||
Sberbank of Russia PJSC | 1,362,120 | 4,909,638 | ||||||
Sberbank of Russia PJSC (Preference) | 126,240 | 393,340 | ||||||
Security Bank Corp. | 13,750 | 55,532 | ||||||
Shengjing Bank Co. Ltd., Class H(b) | 1,055,000 | 707,075 | ||||||
Shinhan Financial Group Co. Ltd. | 59,760 | 2,666,134 | ||||||
Siam Commercial Bank PCL (The), NVDR | 91,400 | 379,385 | ||||||
SinoPac Financial Holdings Co. Ltd. | 1,363,900 | 493,256 | ||||||
Sociedad Matriz del Banco de Chile SA, Class B | 297,840 | 158,322 | ||||||
South Indian Bank Ltd. (The) | 1,621,440 | 642,599 | ||||||
Standard Bank Group Ltd. | 163,832 | 2,812,654 | ||||||
State Bank of India | 102,600 | 378,793 | ||||||
Syndicate Bank* | 511,920 | 422,637 | ||||||
Taichung Commercial Bank Co. Ltd. | 217,258 | 75,267 | ||||||
Taishin Financial Holding Co. Ltd. | 1,239,959 | 605,594 | ||||||
Taiwan Business Bank | 480,000 | 147,959 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 491,160 | 286,364 | ||||||
Thanachart Capital PCL, NVDR | 72,000 | 122,624 | ||||||
Tisco Financial Group PCL, NVDR | 20,800 | 58,492 | ||||||
TMB Bank PCL, NVDR | 1,320,000 | 98,707 | ||||||
Turkiye Garanti Bankasi A/S | 266,640 | 604,084 | ||||||
Turkiye Halk Bankasi A/S | 77,520 | 157,700 | ||||||
Turkiye Is Bankasi A/S, Class C | 175,800 | 266,387 | ||||||
Turkiye Sinai Kalkinma Bankasi A/S | 2,201,640 | 758,206 |
See Accompanying Notes to the Financial Statements.
134 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
Turkiye Vakiflar Bankasi TAO, Class D | 120,360 | $ | 176,754 | |||||
UCO Bank* | 38,479 | 11,387 | ||||||
Union Bank of India* | 20,270 | 28,975 | ||||||
Union Bank of Taiwan | 231,356 | 75,851 | ||||||
Union Bank of the Philippines | 16,100 | 28,389 | ||||||
Union National Bank PJSC | 138,436 | 139,448 | ||||||
United Bank Ltd. | 60,000 | 104,404 | ||||||
Vijaya Bank | 406,560 | 388,346 | ||||||
VTB Bank PJSC | 636,373,080 | 545,370 | ||||||
Woori Bank | 69,240 | 1,040,496 | ||||||
Yapi ve Kredi Bankasi A/S* | 99,480 | 97,394 | ||||||
Yes Bank Ltd. | 101,280 | 549,346 | ||||||
Zhongyuan Bank Co. Ltd., Class H* (b) | 2,007,000 | 629,085 | ||||||
124,785,252 | ||||||||
Beverages – 0.7% | ||||||||
Ambev SA (Preference) | 258,700 | 1,730,502 | ||||||
Anadolu Efes Biracilik ve Malt Sanayii A/S | 10,922 | 71,573 | ||||||
Anhui Gujing Distillery Co. Ltd., Class B | 4,200 | 21,759 | ||||||
Arca Continental SAB de CV | 25,000 | 172,052 | ||||||
Becle SAB de CV* | 34,400 | 58,023 | ||||||
Carabao Group PCL, NVDR | 13,100 | 22,414 | ||||||
Carlsberg Brewery Malaysia Bhd. | 10,400 | 52,431 | ||||||
China Resources Beer Holdings Co. Ltd. | 89,107 | 385,459 | ||||||
Cia Cervecerias Unidas SA | 9,000 | 124,898 | ||||||
Coca-Cola Embonor SA (Preference), Class B | 4,368 | 12,627 | ||||||
Coca-Cola Femsa SAB de CV, Series L | 29,200 | 188,783 | ||||||
Coca-Cola Icecek A/S | 5,040 | 44,557 | ||||||
Distell Group Ltd. | 4,992 | 53,256 | ||||||
Embotelladora Andina SA (Preference), Class B | 9,513 | 47,461 | ||||||
Emperador, Inc. | 145,600 | 20,258 | ||||||
Fomento Economico Mexicano SAB de CV | 126,400 | 1,216,612 |
Investments | Shares | Value | ||||||
Beverages – (continued) | ||||||||
Fraser & Neave Holdings Bhd. | 3,700 | $ | 33,912 | |||||
Heineken Malaysia Bhd. | 7,700 | 40,193 | ||||||
Hey Song Corp. | 33,000 | 34,855 | ||||||
Hite Jinro Co. Ltd. | 1,790 | 36,536 | ||||||
Lotte Chilsung Beverage Co. Ltd. | 15 | 22,752 | ||||||
Muhak Co. Ltd. | 761 | 12,077 | ||||||
Tibet Water Resources Ltd.* | 52,000 | 22,461 | ||||||
Tsingtao Brewery Co. Ltd., Class H | 18,000 | 93,575 | ||||||
United Breweries Ltd. | 3,744 | 67,349 | ||||||
United Spirits Ltd.* | 3,360 | 182,358 | ||||||
Varun Beverages Ltd. | 774 | 7,585 | ||||||
Vina Concha y Toro SA | 19,880 | 43,961 | ||||||
Yantai Changyu Pioneer Wine Co. Ltd., Class B | 9,600 | 24,403 | ||||||
4,844,682 | ||||||||
Biotechnology – 0.4% | ||||||||
3SBio, Inc.* (b) | 68,480 | 148,159 | ||||||
Amicogen, Inc.* | 1,224 | 37,417 | ||||||
Biocon Ltd. | 7,488 | 74,902 | ||||||
Celltrion, Inc.* | 5,859 | 1,486,624 | ||||||
China Biologic Products Holdings, Inc.* (a) | 1,300 | 112,931 | ||||||
Genexine Co. Ltd.* | 650 | 67,066 | ||||||
Green Cross Cell Corp. | 258 | 13,044 | ||||||
Green Cross Corp. | 300 | 60,812 | ||||||
Green Cross Holdings Corp. | 1,787 | 63,914 | ||||||
Hugel, Inc.* | 104 | 49,145 | ||||||
iNtRON Biotechnology, Inc.* | 460 | 19,338 | ||||||
Medy-Tox, Inc. | 240 | 156,757 | ||||||
OBI Pharma, Inc.* | 9,000 | 51,409 | ||||||
PharmaEngine, Inc. | 4,172 | 19,882 | ||||||
PharmaEssentia Corp.* | 11,000 | 67,666 | ||||||
Seegene, Inc.* | 999 | 32,644 | ||||||
SillaJen, Inc.* | 3,663 | 288,431 | ||||||
TaiMed Biologics, Inc.* | 8,000 | 83,822 | ||||||
ViroMed Co. Ltd.* | 775 | 157,097 | ||||||
2,991,060 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 135 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Building Products – 0.3% | ||||||||
Astral Polytechnik Ltd. | 1,823 | $ | 25,955 | |||||
Cera Sanitaryware Ltd. | 86 | 4,080 | ||||||
China Lesso Group Holdings Ltd. | 104,000 | 80,436 | ||||||
Dynasty Ceramic PCL, NVDR | 104,000 | 9,820 | ||||||
Elementia SAB de CV* (b) | 10,400 | 9,258 | ||||||
IS Dongseo Co. Ltd. | 26,400 | 808,277 | ||||||
Kajaria Ceramics Ltd. | 2,608 | 21,340 | ||||||
KCC Corp. | 360 | 131,792 | ||||||
Kyung Dong Navien Co. Ltd. | 208 | 11,626 | ||||||
LG Hausys Ltd. | 10,800 | 823,107 | ||||||
National Central Cooling Co. PJSC | 66,664 | 31,942 | ||||||
Sintex Plastics Technology Ltd.* | 29,114 | 23,447 | ||||||
Taiwan Glass Industry Corp. | 56,000 | 37,666 | ||||||
Trakya Cam Sanayii A/S | 43,056 | 49,673 | ||||||
2,068,419 | ||||||||
Capital Markets – 2.5% | ||||||||
B3 SA – Brasil Bolsa Balcao* | 122,000 | 884,996 | ||||||
Banco BTG Pactual SA* | 10,400 | 66,735 | ||||||
Bolsa Mexicana de Valores SAB de CV | 24,100 | 46,295 | ||||||
Brait SE* | 17,056 | 59,159 | ||||||
Bursa Malaysia Bhd. | 17,700 | 32,571 | ||||||
Capital Securities Corp. | 77,000 | 29,279 | ||||||
Care Ratings Ltd. | 516 | 9,847 | ||||||
China Bills Finance Corp. | 71,000 | 34,676 | ||||||
China Cinda Asset Management Co. Ltd., Class H | 1,080,000 | 388,061 | ||||||
China Everbright Ltd. | 94,000 | 208,403 | ||||||
China Galaxy Securities Co. Ltd., Class H(a) | 420,000 | 278,279 | ||||||
China Huarong Asset Management Co. Ltd., Class H(b) | 1,384,000 | 479,658 | ||||||
China International Capital Corp. Ltd., Class H(b) | 48,000 | 109,599 | ||||||
China investment Fund International Holdings Co. Ltd.* | 32,000 | 33,679 |
Investments | Shares | Value | ||||||
Capital Markets – (continued) | ||||||||
China Merchants Securities Co. Ltd., Class H(b) | 107,400 | $ | 151,078 | |||||
China Minsheng Financial Holding Corp. Ltd.* | 380,000 | 11,524 | ||||||
CITIC Securities Co. Ltd., Class H | 134,500 | 331,783 | ||||||
Coronation Fund Managers Ltd. | 16,810 | 99,887 | ||||||
CRISIL Ltd. | 1,032 | 29,045 | ||||||
CSC Financial Co. Ltd., Class H(b) | 1,440,000 | 1,192,623 | ||||||
Daishin Securities Co. Ltd. | 68,400 | 880,577 | ||||||
Daishin Securities Co. Ltd. (Preference) | 39,840 | 339,072 | ||||||
Daou Technology, Inc. | 48,960 | 1,107,049 | ||||||
Dubai Financial Market PJSC | 67,052 | 17,889 | ||||||
Edelweiss Financial Services Ltd. | 26,040 | 111,901 | ||||||
Egypt Kuwait Holding Co. SAE | 105,480 | 118,138 | ||||||
Egyptian Financial Group-Hermes Holding Co. | 21,531 | 31,896 | ||||||
Everbright Securities Co. Ltd., Class H(b) | 1,272,000 | 1,534,844 | ||||||
GF Securities Co. Ltd., Class H | 181,400 | 322,201 | ||||||
Guotai Junan International Holdings Ltd. | 142,800 | 43,122 | ||||||
Guotai Junan Securities Co. Ltd., Class H* (b) | 72,000 | 169,719 | ||||||
Haitong Securities Co. Ltd., Class H | 192,000 | 264,212 | ||||||
Hanwha Investment & Securities Co. Ltd.* | 229,800 | 696,038 | ||||||
Huarong International Financial Holdings Ltd.* | 66,650 | 13,163 | ||||||
Huatai Securities Co. Ltd., Class H(b) | 96,000 | 195,957 | ||||||
IIFL Holdings Ltd. | 10,800 | 124,263 | ||||||
Indiabulls Ventures Ltd.* | 5,332 | 38,520 | ||||||
Investec Ltd. | 38,040 | 300,054 | ||||||
Jih Sun Financial Holdings Co. Ltd. | 94,813 | 28,297 | ||||||
JM Financial Ltd. | 11,544 | 24,648 | ||||||
JSE Ltd. | 4,205 | 65,858 | ||||||
KIWOOM Securities Co. Ltd. | 1,440 | 159,768 |
See Accompanying Notes to the Financial Statements.
136 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Korea Investment Holdings Co. Ltd. | 5,280 | $ | 450,361 | |||||
Kresna Graha Investama Tbk. PT* | 187,300 | 8,818 | ||||||
Macquarie Korea Infrastructure Fund | 21,360 | 178,992 | ||||||
Masterlink Securities Corp. | 1,800,000 | 672,266 | ||||||
Meritz Securities Co. Ltd. | 35,280 | 137,579 | ||||||
Mirae Asset Daewoo Co. Ltd. | 23,160 | 212,073 | ||||||
Moscow Exchange MICEX-RTS PJSC | 87,240 | 167,275 | ||||||
Motilal Oswal Financial Services Ltd. | 1,976 | 29,069 | ||||||
Multi Commodity Exchange of India Ltd. | 688 | 8,031 | ||||||
NH Investment & Securities Co. Ltd. | 8,760 | 127,949 | ||||||
NH Investment & Securities Co. Ltd. (Preference) | 1,352 | 12,051 | ||||||
Norte Grande SA | 63,288,774 | 679,735 | ||||||
Orient Securities Co. Ltd., Class H(b) | 1,488,000 | 1,285,464 | ||||||
OSK Holdings Bhd. | 1,800,000 | 456,480 | ||||||
President Securities Corp. | 32,943 | 16,590 | ||||||
PSG Konsult Ltd. | 3,256 | 2,368 | ||||||
Samsung Securities Co. Ltd. | 3,840 | 133,387 | ||||||
Shinyoung Securities Co. Ltd.* | 208 | 11,393 | ||||||
Sociedad de Inversiones Oro Blanco SA | 1,595,152 | 16,243 | ||||||
Warsaw Stock Exchange | 1,040 | 11,710 | ||||||
Waterland Financial Holdings Co. Ltd. | 149,140 | 52,172 | ||||||
Yuanta Financial Holding Co. Ltd. | 1,487,929 | 714,129 | ||||||
Yuanta Securities Korea Co. Ltd.* | 169,576 | 725,586 | ||||||
Zeder Investments Ltd. | 1,821,000 | 904,392 | ||||||
18,078,476 | ||||||||
Chemicals – 3.7% | ||||||||
Acron PJSC | 728 | 50,217 | ||||||
AECI Ltd. | 200,040 | 1,888,112 | ||||||
Aekyung Petrochemical Co. Ltd. | 26,160 | 358,826 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
AK Holdings, Inc. | 9,720 | $ | 664,351 | |||||
Akzo Nobel India Ltd. | 832 | 24,019 | ||||||
Alexandria Mineral Oils Co. | 905,778 | 571,543 | ||||||
Alpek SAB de CV | 41,600 | 59,381 | ||||||
Asia Polymer Corp. | 17,331 | 10,427 | ||||||
Asian Paints Ltd. | 17,280 | 311,138 | ||||||
Barito Pacific Tbk. PT* | 213,400 | 37,887 | ||||||
BASF India Ltd. | 836 | 26,769 | ||||||
Batu Kawan Bhd. | 26,400 | 123,808 | ||||||
Bayer CropScience Ltd. | 562 | 39,630 | ||||||
Berger Paints India Ltd. | 10,816 | 46,447 | ||||||
Braskem SA (Preference), Class A | 12,000 | 157,066 | ||||||
Castrol India Ltd. | 9,090 | 26,539 | ||||||
Chambal Fertilizers and Chemicals Ltd. | 5,408 | 15,846 | ||||||
China General Plastics Corp. | 600,000 | 647,931 | ||||||
China Lumena New Materials Corp.* ‡ (c) | 888,000 | — | ||||||
China Man-Made Fiber Corp.* | 2,040,000 | 677,782 | ||||||
China Petrochemical Development Corp.* | 198,700 | 87,642 | ||||||
China Steel Chemical Corp.* | 8,000 | 42,452 | ||||||
China Synthetic Rubber Corp. | 30,901 | 44,493 | ||||||
Ciech SA* | 47,040 | 763,918 | ||||||
Coremax Corp. | 4,000 | 16,426 | ||||||
Coromandel International Ltd. | 1,898 | 13,523 | ||||||
D&L Industries, Inc. | 110,800 | 23,209 | ||||||
Dawood Hercules Corp. Ltd. | 212,600 | 245,676 | ||||||
DCM Shriram Ltd. | 1,872 | 9,326 | ||||||
Dongjin Semichem Co. Ltd. | 1,144 | 15,156 | ||||||
Dongyue Group Ltd. | 2,106,000 | 1,776,411 | ||||||
Eastern Polymer Group PCL, NVDR | 52,200 | 11,578 | ||||||
Ecopro Co. Ltd.* | 624 | 21,208 | ||||||
EID Parry India Ltd.* | 1,204 | 4,950 | ||||||
Engro Corp. Ltd. | 15,700 | 42,453 | ||||||
Engro Fertilizers Ltd. | 69,500 | 43,401 | ||||||
Eternal Materials Co. Ltd. | 43,000 | 41,276 | ||||||
Everlight Chemical Industrial Corp. | 54,000 | 32,762 | ||||||
Fatima Fertilizer Co. Ltd. | 1,167,500 | 319,529 | ||||||
Fauji Fertilizer Co. Ltd. | 41,500 | 35,823 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 137 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
Finolex Industries Ltd. | 3,922 | $ | 38,521 | |||||
Foosung Co. Ltd.* | 1,768 | 15,593 | ||||||
Formosa Chemicals & Fibre Corp. | 240,000 | 888,243 | ||||||
Formosa Plastics Corp. | 279,000 | 985,433 | ||||||
Formosan Union Chemical | 720,000 | 455,072 | ||||||
Fufeng Group Ltd.* (a) | 144,000 | 80,731 | ||||||
Godrej Industries Ltd. | 3,377 | 30,339 | ||||||
Grand Pacific Petrochemical | 90,000 | 100,384 | ||||||
Green Seal Holding Ltd. | 181,300 | 230,405 | ||||||
Grupa Azoty SA | 1,999 | 30,523 | ||||||
Gujarat Fluorochemicals Ltd. | 1,704 | 21,770 | ||||||
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. | 2,758 | 19,689 | ||||||
Hansol Chemical Co. Ltd. | 528 | 34,951 | ||||||
Hanwha Chemical Corp. | 13,200 | 357,792 | ||||||
Himadri Speciality Chemical Ltd. | 7,638 | 16,880 | ||||||
Ho Tung Chemical Corp.* | 1,560,000 | 433,941 | ||||||
Huabao International Holdings Ltd. | 47,000 | 30,182 | ||||||
Huchems Fine Chemical Corp. | 1,268 | 31,580 | ||||||
Hyosung Corp. | 2,520 | 310,266 | ||||||
Indorama Ventures PCL, NVDR | 113,900 | 217,442 | ||||||
Kansai Nerolac Paints Ltd. | 7,592 | 56,985 | ||||||
Kolon Industries, Inc. | 2,160 | 138,331 | ||||||
Korea Petrochemical Ind Co. Ltd. | 512 | 132,069 | ||||||
Kumho Petrochemical Co. Ltd. | 2,280 | 229,484 | ||||||
LCY Chemical Corp. | 58,000 | 86,452 | ||||||
LG Chem Ltd. | 2,799 | 943,439 | ||||||
LG Chem Ltd. (Preference) | 480 | 92,580 | ||||||
Lotte Chemical Corp. | 2,040 | 790,749 | ||||||
Lotte Chemical Titan Holding Bhd.* (b) | 84,000 | 122,248 | ||||||
LOTTE Fine Chemical Co. Ltd. | 32,400 | 2,081,026 | ||||||
Mexichem SAB de CV | 60,000 | 186,624 | ||||||
Misr Fertilizers Production Co. SAE | 1,204 | 7,134 | ||||||
Namhae Chemical Corp. | 1,040 | 17,771 | ||||||
Nan Ya Plastics Corp. | 340,000 | 937,725 | ||||||
Nantex Industry Co. Ltd. | 497,600 | 421,303 | ||||||
OCI Co. Ltd. | 1,080 | 157,745 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Omnia Holdings Ltd. | 2,184 | $ | 25,103 | |||||
Oriental Union Chemical Corp. | 34,000 | 36,774 | ||||||
Petkim Petrokimya Holding A/S* | 51,480 | 90,923 | ||||||
Petronas Chemicals Group Bhd. | 168,000 | 361,820 | ||||||
PhosAgro PJSC | 4,320 | 171,495 | ||||||
PI Industries Ltd. | 3,911 | 50,854 | ||||||
Pidilite Industries Ltd. | 7,920 | 128,899 | ||||||
PTT Global Chemical PCL, NVDR | 204,000 | 633,460 | ||||||
Rain Industries Ltd. | 2,912 | 13,949 | ||||||
Rallis India Ltd. | 3,030 | 10,008 | ||||||
Sasol Ltd. | 35,040 | 1,257,384 | ||||||
Scientex Bhd. | 8,700 | 16,874 | ||||||
Shinkong Synthetic Fibers Corp. | 61,000 | 21,030 | ||||||
Sidi Kerir Petrochemicals Co. | 267,240 | 455,583 | ||||||
Sinofert Holdings Ltd.* | 172,000 | 20,601 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H | 416,000 | 277,749 | ||||||
SK Discovery Co. Ltd. | 695 | 27,753 | ||||||
SK Materials Co. Ltd. | 312 | 45,016 | ||||||
SKC Co. Ltd. | 2,186 | 77,980 | ||||||
SKCKOLONPI, Inc. | 520 | 21,106 | ||||||
Sociedad Quimica y Minera de Chile SA (Preference), Class B | 5,640 | 309,706 | ||||||
Soda Sanayii A/S | 27,772 | 32,996 | ||||||
Solar Industries India Ltd. | 1,040 | 16,575 | ||||||
Songwon Industrial Co. Ltd. | 28,680 | 777,385 | ||||||
Soulbrain Co. Ltd. | 416 | 22,980 | ||||||
Supreme Industries Ltd. | 1,204 | 24,996 | ||||||
Taekwang Industrial Co. Ltd. | 52 | 63,196 | ||||||
Taiwan Fertilizer Co. Ltd.* | 37,000 | 50,085 | ||||||
Taiwan Styrene Monomer | 840,000 | 610,414 | ||||||
TSRC Corp. | 34,000 | 34,360 | ||||||
UPC Technology Corp. | 49,200 | 33,009 | ||||||
UPL Ltd. | 22,390 | 244,851 | ||||||
USI Corp. | 1,391,360 | 679,538 | ||||||
Wonik Materials Co. Ltd.* | 86 | 4,871 | ||||||
Yung Chi Paint & Varnish Manufacturing Co. Ltd. | 23,000 | 62,346 | ||||||
26,772,002 |
See Accompanying Notes to the Financial Statements.
138 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Commercial Services & Supplies – 0.3% | ||||||||
Blue Label Telecoms Ltd. | 1,281,840 | $ | 1,276,321 | |||||
China Everbright International Ltd. | 155,000 | 218,826 | ||||||
Cleanaway Co. Ltd. | 3,000 | 19,316 | ||||||
ECOVE Environment Corp. | 1,000 | 5,881 | ||||||
Greentown Service Group Co. Ltd.(b) | 68,000 | 56,925 | ||||||
KEPCO Plant Service & Engineering Co. Ltd. | 1,144 | 54,305 | ||||||
Novus Holdings Ltd. | 1 | — | (d) | |||||
S-1 Corp. | 1,080 | 99,198 | ||||||
Sunny Friend Environmental Technology Co. Ltd. | 3,000 | 19,773 | ||||||
Taiwan Secom Co. Ltd. | 11,165 | 33,586 | ||||||
Taiwan Shin Kong Security Co. Ltd. | 8,240 | 10,778 | ||||||
1,794,909 | ||||||||
Communications Equipment – 0.4% | ||||||||
Accton Technology Corp. | 27,000 | 62,420 | ||||||
Advanced Ceramic X Corp. | 4,000 | 34,272 | ||||||
Alpha Networks, Inc. | 514,000 | 347,456 | ||||||
Arcadyan Technology Corp. | 263,000 | 504,017 | ||||||
BYD Electronic International Co. Ltd.(a) | 34,000 | 52,246 | ||||||
Sangsangin Co. Ltd.* | 60,720 | 1,239,358 | ||||||
Sercomm Corp. | 26,000 | 70,566 | ||||||
Wistron NeWeb Corp. | 29,503 | 69,603 | ||||||
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., Class H(b) | 6,000 | 25,802 | ||||||
Zinwell Corp. | 480,000 | 411,269 | ||||||
ZTE Corp., Class H* (a) (c) | 48,000 | 156,570 | ||||||
2,973,579 | ||||||||
Construction & Engineering – 2.1% | ||||||||
Arabtec Holding PJSC | 33,946 | 18,853 | ||||||
BES Engineering Corp. | 55,000 | 14,110 | ||||||
Budimex SA | 460 | 24,656 | ||||||
CH Karnchang PCL, NVDR | 737 | 560 | ||||||
China Communications Construction Co. Ltd., Class H | 548,000 | 635,403 |
Investments | Shares | Value | ||||||
Construction & Engineering – (continued) | ||||||||
China Energy Engineering Corp. Ltd., Class H | 720,000 | $ | 141,280 | |||||
China Railway Construction Corp. Ltd., Class H | 240,000 | 285,312 | ||||||
China Railway Group Ltd., Class H | 480,000 | 385,920 | ||||||
China State Construction International Holdings Ltd.(a) | 225,750 | 295,123 | ||||||
Continental Holdings Corp. | 777,000 | 346,658 | ||||||
CTCI Corp. | 63,000 | 106,361 | ||||||
Daelim Industrial Co. Ltd. | 3,272 | 263,463 | ||||||
Daewoo Engineering & Construction Co. Ltd.* | 25,680 | 152,678 | ||||||
Dilip Buildcon Ltd.(b) | 1,768 | 30,794 | ||||||
Ekovest Bhd. | 17,200 | 3,595 | ||||||
Engineers India Ltd. | 7,880 | 18,755 | ||||||
Gamuda Bhd. | 108,000 | 141,486 | ||||||
GE Power India Ltd. | 602 | 7,667 | ||||||
GEK Terna Holding Real Estate Construction SA* | 146,520 | 893,979 | ||||||
GMR Infrastructure Ltd.* | 102,144 | 31,375 | ||||||
GS Engineering & Construction Corp. | 7,560 | 288,796 | ||||||
Hindustan Construction Co. Ltd.* | 9,460 | 3,345 | ||||||
Hong Kong International Construction Investment Management Group Co. Ltd. | 1,532,000 | 404,070 | ||||||
Hyundai Development Co.-Engineering & Construction(c) | 7,200 | 312,794 | ||||||
Hyundai Engineering & Construction Co. Ltd. | 9,120 | 543,076 | ||||||
IJM Corp. Bhd. | 180,000 | 136,715 | ||||||
IRB Infrastructure Developers Ltd. | 276,360 | 1,166,269 | ||||||
Italian-Thai Development PCL, NVDR* | 118,243 | 11,540 | ||||||
Kalpataru Power Transmission Ltd. | 4,716 | 34,519 | ||||||
KEC International Ltd. | 516 | 3,140 | ||||||
KEPCO Engineering & Construction Co., Inc. | 602 | 20,770 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 139 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Larsen & Toubro Ltd. | 19,984 | $ | 419,462 | |||||
Larsen & Toubro Ltd., GDR(b) | 296 | 6,231 | ||||||
Malaysian Resources Corp. Bhd. | 83,200 | 21,842 | ||||||
Metallurgical Corp. of China Ltd., Class H | 5,206,000 | 1,671,598 | ||||||
NBCC India Ltd. | 22,256 | 34,981 | ||||||
NCC Ltd. | 15,600 | 31,216 | ||||||
Orascom Construction Ltd.* | 6,240 | 55,536 | ||||||
PP Persero Tbk. PT* | 4,512,000 | 788,080 | ||||||
Run Long Construction Co. Ltd.* | 280,000 | 524,293 | ||||||
Sadbhav Engineering Ltd. | 3,224 | 18,458 | ||||||
Salfacorp SA | 10,456 | 20,007 | ||||||
Samsung Engineering Co. Ltd.* | 8,685 | 145,963 | ||||||
Sinopec Engineering Group Co. Ltd., Class H | 2,176,000 | 2,245,800 | ||||||
Sino-Thai Engineering & Construction PCL, NVDR* | 41,571 | 23,051 | ||||||
Sunway Construction Group Bhd. | 25,800 | 14,795 | ||||||
Taeyoung Engineering & Construction Co. Ltd. | 1,976 | 21,646 | ||||||
Tekfen Holding A/S | 29,280 | 110,775 | ||||||
United Integrated Services Co. Ltd.* | 352,000 | 762,618 | ||||||
Voltas Ltd. | 5,928 | 57,068 | ||||||
Waskita Karya Persero Tbk. PT | 219,600 | 34,883 | ||||||
WCT Holdings Bhd.* | 34,400 | 10,784 | ||||||
Wijaya Karya Persero Tbk. PT* | 111,166 | 12,665 | ||||||
Wilson Bayly Holmes-Ovcon Ltd. | 101,040 | 1,289,087 | ||||||
15,043,901 | ||||||||
Construction Materials – 1.4% | ||||||||
ACC Ltd. | 1,926 | 45,802 | ||||||
Ambuja Cements Ltd. | 45,360 | 170,355 | ||||||
Anhui Conch Cement Co. Ltd., Class H | 69,500 | 437,461 | ||||||
Asia Cement Corp. | 125,020 | 134,162 | ||||||
BBMG Corp., Class H(a) | 4,244,000 | 1,952,135 | ||||||
Birla Corp. Ltd. | 1,883 | 21,560 |
Investments | Shares | Value | ||||||
Construction Materials – (continued) | ||||||||
Cahya Mata Sarawak Bhd. | 32,900 | $ | 33,961 | |||||
Cementos Argos SA | 26,160 | 92,481 | ||||||
Cementos Argos SA (Preference) | 10,296 | 30,240 | ||||||
Cementos Pacasmayo SAA | 4,992 | 12,533 | ||||||
CEMEX Latam Holdings SA* | 7,998 | 24,658 | ||||||
Cemex SAB de CV* | 846,048 | 527,030 | ||||||
Century Textiles & Industries Ltd. | 1,872 | 35,413 | ||||||
China National Building Material Co. Ltd., Class H | 480,050 | 567,625 | ||||||
China Resources Cement Holdings Ltd. | 240,000 | 254,426 | ||||||
China Shanshui Cement Group Ltd.* (c) | 541,000 | 34,466 | ||||||
Dalmia Bharat Ltd. | 1,352 | 61,773 | ||||||
DG Khan Cement Co. Ltd. | 408,000 | 512,710 | ||||||
Eagle Cement Corp.* | 62,400 | 19,004 | ||||||
Fauji Cement Co. Ltd. | 1,320,000 | 321,976 | ||||||
Goldsun Building Materials Co. Ltd. | 73,000 | 23,810 | ||||||
Grasim Industries Ltd. | 18,196 | 298,186 | ||||||
Grupo Argos SA | 19,560 | 139,272 | ||||||
Grupo Argos SA (Preference) | 9,984 | 59,003 | ||||||
Grupo Cementos de Chihuahua SAB de CV | 6,500 | 37,670 | ||||||
Hanil Cement Co. Ltd. | 9,480 | 1,473,414 | ||||||
India Cements Ltd. (The) | 2,408 | 5,306 | ||||||
Indocement Tunggal Prakarsa Tbk. PT | 108,000 | 137,596 | ||||||
JK Lakshmi Cement Ltd. | 657 | 4,023 | ||||||
Lafarge Malaysia Bhd.* | 23,500 | 25,156 | ||||||
Lucky Cement Ltd. | 10,400 | 59,501 | ||||||
Maple Leaf Cement Factory Ltd. | 480,000 | 287,244 | ||||||
OCL India Ltd. | 2,388 | 50,571 | ||||||
POSCO Chemtech Co. Ltd. | 1,144 | 39,417 | ||||||
PPC Ltd.* | 54,720 | 38,354 | ||||||
Prism Cement Ltd.* | 10,157 | 18,894 | ||||||
Qatar National Cement Co. QSC | 29,739 | 450,046 | ||||||
Qatari Investors Group QSC | 1,720 | 16,581 | ||||||
Ramco Cements Ltd. (The) | 3,536 | 43,641 | ||||||
Semen Baturaja Persero Tbk. PT | 86,000 | 25,900 |
See Accompanying Notes to the Financial Statements.
140 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction Materials – (continued) | ||||||||
Semen Indonesia Persero Tbk. PT* | 180,000 | $ | 124,852 | |||||
Shree Cement Ltd. | 480 | 121,861 | ||||||
Siam Cement PCL (The), NVDR | 16,950 | 251,350 | ||||||
Siam City Cement PCL, NVDR | 4,700 | 36,635 | ||||||
Ssangyong Cement Industrial Co. Ltd. | 2,781 | 77,724 | ||||||
Taiwan Cement Corp. | 205,000 | 283,043 | ||||||
Tipco Asphalt PCL, NVDR | 41,600 | 23,858 | ||||||
Titan Cement Co. SA | 1,860 | 49,102 | ||||||
TPI Polene PCL, NVDR | 377,200 | 22,589 | ||||||
UltraTech Cement Ltd. | 6,746 | 415,318 | ||||||
Union Andina de Cementos SAA | 32,705 | 29,418 | ||||||
Waskita Beton Precast Tbk. PT | 490,200 | 14,235 | ||||||
West China Cement Ltd.* | 46,008 | 9,380 | ||||||
9,982,721 | ||||||||
Consumer Finance – 0.4% | ||||||||
AEON Credit Service M Bhd. | 4,400 | 14,669 | ||||||
AEON Thana Sinsap Thailand PCL, NVDR | 139,300 | 772,418 | ||||||
AU Small Finance Bank Ltd.* (b) | 2,288 | 24,747 | ||||||
Bajaj Finance Ltd. | 9,720 | 277,837 | ||||||
Capital First Ltd. | 1,376 | 13,247 | ||||||
Cholamandalam Investment and Finance Co. Ltd. | 1,997 | 52,108 | ||||||
Chong Sing Holdings FinTech Group Ltd.* | 960,000 | 125,990 | ||||||
Gentera SAB de CV(a) | 132,000 | 105,068 | ||||||
KRUK SA | 858 | 56,322 | ||||||
Krungthai Card PCL, NVDR | 6,200 | 71,901 | ||||||
Mahindra & Mahindra Financial Services Ltd. | 15,523 | 122,842 | ||||||
Manappuram Finance Ltd. | 18,492 | 33,872 | ||||||
Muangthai Leasing PCL, NVDR | 39,400 | 45,567 | ||||||
Muthoot Finance Ltd. | 3,784 | 25,562 | ||||||
Reliance Home Finance Ltd.* | 213,840 | 200,255 | ||||||
Safmar Financial Investment | 1,768 | 18,248 | ||||||
Samsung Card Co. Ltd. | 3,360 | 117,343 | ||||||
Shriram City Union Finance Ltd. | 1,537 | 55,470 |
Investments | Shares | Value | ||||||
Consumer Finance – (continued) | ||||||||
Shriram Transport Finance Co. Ltd. | 8,880 | $ | 214,263 | |||||
Srisawad Corp. PCL, NVDR* | 23,515 | 38,745 | ||||||
Sundaram Finance Ltd. | 1,310 | 34,754 | ||||||
Transaction Capital Ltd. | 17,028 | 23,897 | ||||||
Unifin Financiera SAB de CV SOFOM ENR* | 4,600 | 16,392 | ||||||
Yulon Finance Corp. | 11,000 | 48,890 | ||||||
2,510,407 | ||||||||
Containers & Packaging – 0.4% | ||||||||
Beijing Enterprises Clean Energy Group Ltd.* | 3,777,142 | 116,468 | ||||||
Cheng Loong Corp. | 1,866,000 | 1,062,718 | ||||||
CPMC Holdings Ltd. | 23,000 | 14,272 | ||||||
Dongwon Systems Corp. | 344 | 14,510 | ||||||
Essel Propack Ltd. | 860 | 3,464 | ||||||
Greatview Aseptic Packaging Co. Ltd. | 40,000 | 26,554 | ||||||
Klabin SA | 52,700 | 320,790 | ||||||
Lock&Lock Co. Ltd. | 728 | 16,086 | ||||||
Nampak Ltd.* | 1,177,080 | 1,310,617 | ||||||
Taiwan Hon Chuan Enterprise Co. Ltd. | 36,000 | 62,907 | ||||||
Vitro SAB de CV, Series A | 13,500 | 44,772 | ||||||
Youyuan International Holdings Ltd.* | 80,000 | 45,666 | ||||||
3,038,824 | ||||||||
Distributors – 0.2% | ||||||||
Dah Chong Hong Holdings Ltd. | 1,440,000 | 770,618 | ||||||
Imperial Holdings Ltd. | 23,280 | 448,248 | ||||||
Inter Cars SA | 402 | 27,536 | ||||||
Test Rite International Co. Ltd. | 302,000 | 235,279 | ||||||
1,481,681 | ||||||||
Diversified Consumer Services – 0.3% | ||||||||
Advtech Ltd. | 991,560 | 1,295,471 | ||||||
China Maple Leaf Educational Systems Ltd. | 16,000 | 22,344 | ||||||
China Yuhua Education Corp. Ltd.(a) (b) | 66,000 | 34,984 | ||||||
Curro Holdings Ltd.* | 7,904 | 21,337 | ||||||
Daekyo Co. Ltd. | 1,248 | 9,161 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 141 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Consumer Services – (continued) | ||||||||
Estacio Participacoes SA | 16,600 | $ | 151,831 | |||||
Fu Shou Yuan International Group Ltd. | 42,000 | 40,243 | ||||||
Kroton Educacional SA | 89,300 | 358,716 | ||||||
Lung Yen Life Service Corp. | 14,000 | 29,574 | ||||||
Ser Educacional SA(b) | 3,500 | 16,658 | ||||||
Virscend Education Co. Ltd.(b) | 67,000 | 40,380 | ||||||
Wisdom Education International Holdings Co. Ltd.(b) | 40,000 | 28,847 | ||||||
2,049,546 | ||||||||
Diversified Financial Services – 1.2% | ||||||||
Aditya Birla Capital Ltd.* | 31,920 | 76,404 | ||||||
Al Waha Capital PJSC | 1,734,120 | 849,793 | ||||||
Alexander Forbes Group Holdings Ltd. | 1,594,956 | 824,069 | ||||||
Amanat Holdings PJSC | 49,192 | 18,214 | ||||||
Ayala Corp. | 14,400 | 268,803 | ||||||
Bajaj Holdings & Investment Ltd. | 1,560 | 63,243 | ||||||
Chailease Holding Co. Ltd. | 63,000 | 232,099 | ||||||
China Shandong Hi-Speed Financial Group Ltd.* | 474,000 | 18,119 | ||||||
Corp. Financiera Colombiana SA* | 4,814 | 41,406 | ||||||
Far East Horizon Ltd. | 278,000 | 276,291 | ||||||
FirstRand Ltd. | 216,000 | 1,158,575 | ||||||
Fubon Financial Holding Co. Ltd. | 904,000 | 1,558,278 | ||||||
Grupo de Inversiones Suramericana SA | 13,200 | 183,181 | ||||||
Grupo de Inversiones Suramericana SA (Preference) | 5,616 | 72,977 | ||||||
GT Capital Holdings, Inc. | 4,800 | 97,392 | ||||||
Haci Omer Sabanci Holding A/S | 167,040 | 395,283 | ||||||
Hankook Tire Worldwide Co. Ltd. | 2,460 | 42,150 | ||||||
IDFC Ltd. | 101,640 | 89,396 | ||||||
IFCI Ltd.* | 1,245,960 | 371,510 | ||||||
Inversiones La Construccion SA | 3,744 | 74,627 |
Investments | Shares | Value | ||||||
Diversified Financial Services – (continued) | ||||||||
L&T Finance Holdings Ltd. | 25,376 | $ | 65,854 | |||||
Meritz Financial Group, Inc. | 4,139 | 54,060 | ||||||
Metro Pacific Investments Corp. | 804,000 | 79,236 | ||||||
NICE Holdings Co. Ltd. | 31,800 | 592,500 | ||||||
Power Finance Corp. Ltd. | 70,320 | 92,668 | ||||||
PSG Group Ltd.(a) | 5,400 | 97,326 | ||||||
Reliance Capital Ltd. | 15,600 | 101,760 | ||||||
Remgro Ltd. | 31,080 | 559,446 | ||||||
RMB Holdings Ltd. | 45,960 | 288,563 | ||||||
Rural Electrification Corp. Ltd. | 88,800 | 169,643 | ||||||
Srei Infrastructure Finance Ltd. | 4,988 | 6,424 | ||||||
Sundaram Finance Holdings Ltd.* | 1,310 | 2,894 | ||||||
TI Financial Holdings Ltd. | 3,206 | 34,704 | ||||||
8,856,888 | ||||||||
Diversified Telecommunication Services – 1.4% | ||||||||
Asia Pacific Telecom Co. Ltd.* | 104,000 | 30,933 | ||||||
Bharti Infratel Ltd. | 42,240 | 198,162 | ||||||
China Communications Services Corp. Ltd., Class H | 4,342,000 | 2,744,092 | ||||||
China Telecom Corp. Ltd., Class H | 1,742,000 | 852,328 | ||||||
China Unicom Hong Kong Ltd.* | 340,000 | 484,337 | ||||||
Chunghwa Telecom Co. Ltd. | 244,000 | 931,912 | ||||||
CITIC Telecom International Holdings Ltd. | 2,640,000 | 780,403 | ||||||
Emirates Telecommunications Group Co. PJSC | 101,640 | 474,559 | ||||||
Hellenic Telecommunications Organization SA | 15,120 | 220,129 | ||||||
Jasmine International PCL, NVDR | 76,400 | 14,162 | ||||||
LG Uplus Corp. | 27,000 | 310,940 | ||||||
Link Net Tbk. PT | 31,200 | 12,110 | ||||||
Magyar Telekom Telecommunications plc | 51,120 | 88,655 | ||||||
O2 Czech Republic A/S* | 3,092 | 42,409 | ||||||
Oi SA* | 552,000 | 612,507 | ||||||
Oi SA (Preference)* | 288,000 | 270,849 | ||||||
Ooredoo QPSC | 13,680 | 297,571 | ||||||
Orange Polska SA* | 33,592 | 50,526 | ||||||
Rostelecom PJSC | 116,520 | 121,524 |
See Accompanying Notes to the Financial Statements.
142 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
Rostelecom PJSC (Preference) | 15,392 | $ | 15,242 | |||||
Tata Communications Ltd. | 5,003 | 46,762 | ||||||
Telecom Egypt Co. | 37,657 | 34,393 | ||||||
Telefonica Brasil SA (Preference) | 24,000 | 338,148 | ||||||
Telekom Malaysia Bhd. | 96,000 | 129,680 | ||||||
Telekomunikasi Indonesia Persero Tbk. PT | 2,940,000 | 809,358 | ||||||
Telesites SAB de CV* | 60,200 | 46,219 | ||||||
Telkom SA SOC Ltd. | 39,480 | 179,694 | ||||||
TIME dotCom Bhd. | 18,200 | 37,249 | ||||||
True Corp. PCL, NVDR | 636,000 | 153,156 | ||||||
Turk Telekomunikasyon A/S* | 30,041 | 46,407 | ||||||
10,374,416 | ||||||||
Electric Utilities – 1.3% | ||||||||
Adani Transmission Ltd.* | 14,456 | 36,519 | ||||||
Alupar Investimento SA | 3,500 | 17,471 | ||||||
Celsia SA ESP | 11,648 | 19,200 | ||||||
Centrais Eletricas Brasileiras SA* | 36,000 | 196,840 | ||||||
Centrais Eletricas Brasileiras SA (Preference), Class B* | 27,800 | 181,736 | ||||||
CESC Ltd. | 4,160 | 66,087 | ||||||
CEZ A/S | 9,360 | 239,939 | ||||||
Cia de Transmissao de Energia Eletrica Paulista (Preference) | 4,900 | 95,536 | ||||||
Cia Energetica de Minas Gerais (Preference) | 134,432 | 326,087 | ||||||
Cia Paranaense de Energia | 6,600 | 43,259 | ||||||
Cia Paranaense de Energia (Preference) | 10,400 | 79,885 | ||||||
EDP – Energias do Brasil SA | 36,000 | 143,372 | ||||||
Enea SA | 28,560 | 85,018 | ||||||
Enel Americas SA | 1,676,160 | 383,885 | ||||||
Enel Chile SA | 1,718,030 | 214,487 | ||||||
ENEL RUSSIA PJSC | 10,978,800 | 261,327 | ||||||
Energa SA | 25,680 | 75,565 | ||||||
Energisa SA | 14,100 | 133,937 | ||||||
Engie Energia Chile SA | 15,830 | 34,179 | ||||||
Equatorial Energia SA | 8,500 | 173,402 |
Investments | Shares | Value | ||||||
Electric Utilities – (continued) | ||||||||
Federal Grid Co. Unified Energy System PJSC | 34,396,800 | $ | 95,857 | |||||
First Philippine Holdings Corp. | 400,800 | 503,038 | ||||||
Holding Co. ADMIE IPTO SA* | 208,560 | 466,167 | ||||||
Inter RAO UES PJSC | 4,490,520 | 285,223 | ||||||
Interconexion Electrica SA ESP | 21,480 | 110,731 | ||||||
Korea District Heating Corp. | 5,040 | 379,870 | ||||||
Korea Electric Power Corp. | 32,160 | 1,127,655 | ||||||
Light SA* | 120,000 | 603,492 | ||||||
Luz del Sur SAA | 7,120 | 26,868 | ||||||
Manila Electric Co. | 15,600 | 97,068 | ||||||
Moscow United Electric Grid Co. PJSC | 22,742,280 | 266,513 | ||||||
Mosenergo PJSC | 880,464 | 35,980 | ||||||
PGE Polska Grupa Energetyczna SA* | 101,400 | 303,006 | ||||||
Power Grid Corp. of India Ltd. | 87,600 | 272,815 | ||||||
Public Power Corp. SA* | 207,480 | 685,352 | ||||||
Reliance Infrastructure Ltd. | 16,800 | 113,577 | ||||||
ROSSETI PJSC | 2,682,436 | 35,567 | ||||||
RusHydro PJSC | 17,642,760 | 208,713 | ||||||
Tata Power Co. Ltd. (The) | 50,856 | 67,285 | ||||||
Tauron Polska Energia SA* | 133,440 | 89,499 | ||||||
Tenaga Nasional Bhd. | 168,000 | 678,252 | ||||||
TGC-1 PJSC | 1,272,448,920 | 229,331 | ||||||
Torrent Power Ltd. | 5,978 | 22,129 | ||||||
Transmissora Alianca de Energia Eletrica SA | 17,600 | 107,436 | ||||||
9,619,155 | ||||||||
Electrical Equipment – 0.7% | ||||||||
ABB India Ltd. | 2,058 | 41,891 | ||||||
AcBel Polytech, Inc.* | 3,000 | 1,927 | ||||||
Amara Raja Batteries Ltd. | 2,733 | 35,274 | ||||||
Bharat Heavy Electricals Ltd. | 37,473 | 49,298 | ||||||
Bizlink Holding, Inc. | 5,103 | 38,117 | ||||||
CG Power and Industrial Solutions Ltd.* | 12,473 | 15,671 | ||||||
Chicony Power Technology Co. Ltd. | 22,000 | 39,335 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 143 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – (continued) | ||||||||
China High Speed Transmission Equipment Group Co. Ltd. | 49,000 | $ | 71,550 | |||||
Chung-Hsin Electric & Machinery Manufacturing Corp. | 628,000 | 455,295 | ||||||
Doosan Heavy Industries & Construction Co. Ltd.* | 8,040 | 134,746 | ||||||
ElSewedy Electric Co. | 8,798 | 125,430 | ||||||
FDG Electric Vehicles Ltd.* | 520,000 | 16,432 | ||||||
Finolex Cables Ltd. | 2,600 | 27,264 | ||||||
GE T&D India Ltd. | 3,640 | 20,622 | ||||||
Graphite India Ltd. | 2,600 | 27,175 | ||||||
Gunkul Engineering PCL, NVDR | 120,400 | 11,063 | ||||||
Havells India Ltd. | 15,120 | 123,980 | ||||||
HEG Ltd. | 499 | 20,851 | ||||||
Korea Electric Terminal Co. Ltd. | 11,400 | 540,087 | ||||||
Kung Long Batteries Industrial Co. Ltd. | 5,000 | 24,166 | ||||||
Longwell Co. | 8,000 | 9,802 | ||||||
LS Corp. | 3,600 | 262,572 | ||||||
LS Industrial Systems Co. Ltd. | 608 | 39,051 | ||||||
Shanghai Electric Group Co. Ltd., Class H(a) | 54,000 | 19,678 | ||||||
Shihlin Electric & Engineering Corp. | 26,000 | 36,074 | ||||||
Sterlite Technologies Ltd. | 5,616 | 29,654 | ||||||
Suzlon Energy Ltd.* | 205,485 | 33,560 | ||||||
Taihan Electric Wire Co. Ltd.* | 7,800 | 12,306 | ||||||
Teco Electric and Machinery Co. Ltd. | 120,000 | 97,950 | ||||||
V-Guard Industries Ltd. | 1,032 | 3,716 | ||||||
Voltronic Power Technology Corp.* | 3,323 | 59,302 | ||||||
Walsin Lihwa Corp. | 312,000 | 213,543 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H(a) | 1,183,200 | 2,258,381 | ||||||
Zhuzhou CRRC Times Electric Co. Ltd., Class H | 31,900 | 170,103 | ||||||
5,065,866 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – 3.1% | ||||||||
AAC Technologies Holdings, Inc. | 42,500 | $ | 618,960 | |||||
Asia Optical Co., Inc. | 13,000 | 40,600 | ||||||
AU Optronics Corp. | 1,130,000 | 473,594 | ||||||
Aurora Corp. | 4,900 | 14,640 | ||||||
BH Co. Ltd.* | 832 | 16,904 | ||||||
Career Technology MFG. Co. Ltd. | 11,000 | 16,303 | ||||||
Chang Wah Electromaterials, Inc. | 56,000 | 279,181 | ||||||
Chaun-Choung Technology Corp. | 3,000 | 7,757 | ||||||
Cheng Uei Precision Industry Co. Ltd. | 41,000 | 53,698 | ||||||
Chilisin Electronics Corp.* | 11,000 | 34,465 | ||||||
Chimei Materials Technology Corp.* | 916,000 | 334,369 | ||||||
China Railway Signal & Communication Corp. Ltd., Class H(b) | 81,008 | 63,479 | ||||||
Chin-Poon Industrial Co. Ltd. | 35,000 | 46,313 | ||||||
Chroma ATE, Inc. | 20,000 | 101,398 | ||||||
Chunghwa Precision Test Tech Co. Ltd. | 1,000 | 25,755 | ||||||
Compeq Manufacturing Co. Ltd. | 137,000 | 137,757 | ||||||
Concraft Holding Co. Ltd. | 3,050 | 26,854 | ||||||
Coretronic Corp.* | 692,000 | 927,376 | ||||||
Co-Tech Development Corp.* | 17,000 | 22,495 | ||||||
CyberPower Systems, Inc. | 81,000 | 244,754 | ||||||
Daeduck Electronics Co. | 59,280 | 462,340 | ||||||
DataTec Ltd. | 430,800 | 728,827 | ||||||
Delta Electronics Thailand PCL, NVDR | 25,200 | 53,698 | ||||||
Delta Electronics, Inc. | 125,000 | 456,289 | ||||||
E Ink Holdings, Inc. | 48,000 | 53,619 | ||||||
Egis Technology, Inc.* | 2,000 | 9,667 | ||||||
Elite Material Co. Ltd. | 16,000 | 39,477 | ||||||
Firich Enterprises Co. Ltd.* | 30,000 | 42,993 | ||||||
FLEXium Interconnect, Inc.* | 16,138 | 42,600 | ||||||
Flytech Technology Co. Ltd. | 3,235 | 8,496 | ||||||
General Interface Solution Holding Ltd. | 10,000 | 60,670 |
See Accompanying Notes to the Financial Statements.
144 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Genius Electronic Optical Co. Ltd.* | 3,000 | $ | 35,692 | |||||
Hana Microelectronics PCL, NVDR | 22,400 | 24,664 | ||||||
HannStar Display Corp. | 360,000 | 99,775 | ||||||
Hollysys Automation Technologies Ltd. | 2,100 | 46,326 | ||||||
Holy Stone Enterprise Co. Ltd.* | 4,000 | 19,739 | ||||||
Hon Hai Precision Industry Co. Ltd. | 1,964,900 | 5,505,559 | ||||||
Honeywell Automation India Ltd. | 104 | 29,486 | ||||||
Iljin Materials Co. Ltd. | 936 | 29,314 | ||||||
Inari Amertron Bhd. | 78,000 | 34,194 | ||||||
Innolux Corp. | 1,200,000 | 450,205 | ||||||
Interflex Co. Ltd.* | 624 | 11,188 | ||||||
ITEQ Corp. | 403,000 | 905,802 | ||||||
KCE Electronics PCL, NVDR | 13,800 | 29,843 | ||||||
Kingboard Chemical Holdings Ltd. | 81,500 | 335,419 | ||||||
Kingboard Laminates Holdings Ltd. | 105,500 | 142,490 | ||||||
Kingpak Technology, Inc. | 2,000 | 13,148 | ||||||
L&F Co. Ltd. | 574 | 20,583 | ||||||
Largan Precision Co. Ltd. | 6,000 | 705,727 | ||||||
LG Display Co. Ltd. | 27,720 | 608,618 | ||||||
LG Innotek Co. Ltd. | 907 | 98,933 | ||||||
Lotes Co. Ltd. | 3,000 | 19,570 | ||||||
Merry Electronics Co. Ltd. | 10,000 | 46,474 | ||||||
Nan Ya Printed Circuit Board Corp.* | 387,000 | 351,206 | ||||||
Pan-International Industrial Corp. | 9,000 | 5,871 | ||||||
Partron Co. Ltd. | 1,768 | 13,921 | ||||||
Posiflex Technology, Inc.* | 8,000 | 31,095 | ||||||
Redington India Ltd. | 466,920 | 968,261 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 3,360 | 372,792 | ||||||
Samsung SDI Co. Ltd. | 3,240 | 556,659 | ||||||
SFA Engineering Corp. | 2,640 | 80,210 | ||||||
Simplo Technology Co. Ltd. | 23,200 | 130,560 | ||||||
Sinbon Electronics Co. Ltd. | 3,253 | 8,653 |
Investments | Shares | Value | ||||||
Electronic Equipment, Instruments & Components – (continued) | ||||||||
Sunny Optical Technology Group Co. Ltd. | 39,400 | $ | 653,132 | |||||
Supreme Electronics Co. Ltd. | 667,000 | 718,028 | ||||||
Synnex Technology International Corp. | 169,000 | 244,191 | ||||||
Taiflex Scientific Co. Ltd. | 18,000 | 23,727 | ||||||
Taiwan PCB Techvest Co. Ltd. | 480,000 | 459,128 | ||||||
Taiwan Union Technology Corp. | 9,000 | 25,157 | ||||||
Test Research, Inc. | 289,000 | 534,308 | ||||||
Thinking Electronic Industrial Co. Ltd. | 12,000 | 33,948 | ||||||
Tong Hsing Electronic Industries Ltd.* | 6,000 | 21,293 | ||||||
Tongda Group Holdings Ltd.(a) | 180,000 | 40,136 | ||||||
TPK Holding Co. Ltd. | 17,000 | 37,463 | ||||||
Tripod Technology Corp. | 24,000 | 72,925 | ||||||
TXC Corp. | 419,000 | 504,870 | ||||||
Unimicron Technology Corp. | 75,000 | 42,587 | ||||||
VS Industry Bhd. | 17,200 | 9,864 | ||||||
Wah Lee Industrial Corp. | 305,000 | 570,074 | ||||||
Walsin Technology Corp. | 16,378 | 103,793 | ||||||
Wintek Corp.* ‡ (c) | 64,000 | — | ||||||
WPG Holdings Ltd.* | 190,000 | 257,195 | ||||||
WT Microelectronics Co. Ltd. | 56,182 | 84,311 | ||||||
Yageo Corp.* | 14,000 | 296,689 | ||||||
Zhen Ding Technology Holding Ltd. | 66,150 | 145,105 | ||||||
22,055,229 | ||||||||
Energy Equipment & Services – 0.2% | ||||||||
Bumi Armada Bhd.* | 145,600 | 31,172 | ||||||
China Oilfield Services Ltd., Class H | 96,000 | 96,266 | ||||||
Dialog Group Bhd. | 264,000 | 207,244 | ||||||
Gulf International Services QSC* | 84,480 | 433,653 | ||||||
Sapura Energy Bhd.* | 167,400 | 27,306 | ||||||
Serba Dinamik Holdings Bhd. | 25,800 | 21,898 | ||||||
TMK PJSC | 564,600 | 686,299 | ||||||
Yinson Holdings Bhd. | 34,400 | 34,720 | ||||||
1,538,558 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 145 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – 0.8% | ||||||||
Arrowhead Properties Ltd. | 1,885,920 | $ | 1,057,490 | |||||
Concentradora Fibra Danhos SA de CV | 41,600 | 73,667 | ||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S* | 260,049 | 155,444 | ||||||
Fibra Uno Administracion SA de CV(a) | 212,000 | 349,568 | ||||||
Fortress REIT Ltd., Class A | 59,193 | 81,935 | ||||||
Fortress REIT Ltd., Class B(a) | 48,240 | 67,238 | ||||||
Grivalia Properties REIC AE | 2,704 | 29,795 | ||||||
Growthpoint Properties Ltd. | 165,281 | 385,275 | ||||||
Hyprop Investments Ltd. | 14,400 | 131,499 | ||||||
IGB REIT | 68,800 | 27,881 | ||||||
IMPACT Growth REIT | 63,000 | 35,532 | ||||||
Investec Property Fund Ltd. | 22,511 | 32,007 | ||||||
KLCCP Stapled Group | 18,100 | 35,891 | ||||||
Korea Asset In Trust Co. Ltd. | 88,293 | 512,538 | ||||||
Macquarie Mexico Real Estate Management SA de CV* (b) | 1,464,000 | 1,555,809 | ||||||
Pavilion REIT | 46,200 | 17,663 | ||||||
PLA Administradora Industrial S de RL de CV* | 25,800 | 40,962 | ||||||
Prologis Property Mexico SA de CV | 10,400 | 19,236 | ||||||
Rebosis Property Fund Ltd. | 1,244,088 | 807,218 | ||||||
Redefine Properties Ltd. | 310,440 | 297,913 | ||||||
Resilient REIT Ltd. | 23,280 | 126,342 | ||||||
SA Corporate Real Estate Ltd. | 105,784 | 40,505 | ||||||
Sunway REIT | 39,400 | 16,168 | ||||||
Vukile Property Fund Ltd. | 31,563 | 56,887 | ||||||
YTL Hospitality REIT | 43,000 | 12,384 | ||||||
Yuexiu REIT(a) | 94,000 | 62,880 | ||||||
6,029,727 | ||||||||
Food & Staples Retailing – 1.1% | ||||||||
7-Eleven Malaysia Holdings Bhd.* | 43,000 | 16,659 | ||||||
Al Meera Consumer Goods Co. QSC | 199 | 7,537 | ||||||
Almacenes Exito SA | 24,840 | 149,983 | ||||||
Atacadao Distribuicao Comercio e Industria Ltda* | 15,300 | 66,241 | ||||||
Avenue Supermarts Ltd.* (b) | 3,848 | 85,946 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – (continued) | ||||||||
Berli Jucker PCL | 500 | $ | 947 | |||||
Berli Jucker PCL, NVDR | 71,500 | 135,365 | ||||||
Bid Corp. Ltd. | 19,920 | 457,320 | ||||||
BIM Birlesik Magazalar A/S | 13,680 | 232,024 | ||||||
Cencosud SA | 78,360 | 233,381 | ||||||
Cia Brasileira de Distribuicao (Preference)* | 8,700 | 196,390 | ||||||
Clicks Group Ltd. | 13,440 | 230,048 | ||||||
Cosco Capital, Inc. | 5,364,000 | 693,440 | ||||||
CP All PCL, NVDR | 264,000 | 727,757 | ||||||
Dino Polska SA* (b) | 1,806 | 48,967 | ||||||
Dis-Chem Pharmacies Ltd.(b) | 17,784 | 53,507 | ||||||
Dongsuh Cos., Inc. | 2,427 | 62,604 | ||||||
E-MART, Inc. | 1,200 | 303,357 | ||||||
Eurocash SA | 4,433 | 31,010 | ||||||
Grupo Comercial Chedraui SA de CV | 10,400 | 21,711 | ||||||
GS Retail Co. Ltd. | 1,264 | 44,025 | ||||||
Hyundai Greenfood Co. Ltd. | 2,808 | 40,488 | ||||||
InRetail Peru Corp.* (b) | 1,980 | 47,322 | ||||||
Magnit PJSC | 3,920 | 305,131 | ||||||
Massmart Holdings Ltd. | 5,304 | 70,567 | ||||||
Migros Ticaret A/S* | 3,526 | 19,776 | ||||||
Organizacion Soriana SAB de CV, Class B* | 17,200 | 31,649 | ||||||
Philippine Seven Corp. | 12,771 | 31,564 | ||||||
Pick n Pay Stores Ltd. | 21,240 | 136,844 | ||||||
President Chain Store Corp. | 36,000 | 355,906 | ||||||
Puregold Price Club, Inc. | 86,860 | 79,559 | ||||||
Raia Drogasil SA* | 13,400 | 264,258 | ||||||
Robinsons Retail Holdings, Inc. | 25,190 | 44,296 | ||||||
Shoprite Holdings Ltd. | 27,000 | 538,540 | ||||||
SMU SA* | 125,632 | 39,810 | ||||||
SPAR Group Ltd. (The) | 11,280 | 191,061 | ||||||
Sun Art Retail Group Ltd. | 130,000 | 147,090 | ||||||
Taiwan TEA Corp. | 1,200,000 | 626,637 | ||||||
Wal-Mart de Mexico SAB de CV | 300,000 | 830,097 | ||||||
7,598,814 | ||||||||
Food Products – 2.5% | ||||||||
Alicorp SAA | 26,859 | 98,873 | ||||||
Astra Agro Lestari Tbk. PT | 20,800 | 19,099 | ||||||
Avanti Feeds Ltd. | 750 | 27,902 |
See Accompanying Notes to the Financial Statements.
146 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
AVI Ltd. | 17,640 | $ | 161,100 | |||||
Binggrae Co. Ltd. | 321 | 19,986 | ||||||
Boustead Plantations Bhd. | 60,200 | 19,179 | ||||||
BRF SA* | 36,600 | 260,252 | ||||||
Britannia Industries Ltd. | 1,920 | 158,606 | ||||||
Century Pacific Food, Inc. | 17,700 | 5,657 | ||||||
Charoen Pokphand Enterprise | 12,000 | 25,958 | ||||||
Charoen Pokphand Foods PCL, NVDR | 206,300 | 159,497 | ||||||
Charoen Pokphand Indonesia Tbk. PT | 368,400 | 97,446 | ||||||
China Agri-Industries Holdings Ltd. | 145,705 | 61,451 | ||||||
China Foods Ltd. | 46,789 | 21,641 | ||||||
China Huishan Dairy Holdings Co. Ltd.* ‡ (a) (c) | 158,000 | — | ||||||
China Huiyuan Juice Group Ltd.* (c) | 24,000 | 6,177 | ||||||
China Mengniu Dairy Co. Ltd.* | 156,000 | 506,865 | ||||||
China Modern Dairy Holdings Ltd.* | 185,000 | 31,587 | ||||||
China Shengmu Organic Milk Ltd.* (b) | 183,000 | 21,452 | ||||||
CJ CheilJedang Corp. | 618 | 198,468 | ||||||
CJ CheilJedang Corp. (Preference) | 104 | 13,243 | ||||||
COFCO Meat Holdings Ltd.* (b) | 1,800,000 | 279,808 | ||||||
Daesang Corp. | 34,680 | 863,712 | ||||||
Dali Foods Group Co. Ltd.(a) (b) | 120,000 | 83,331 | ||||||
Dongwon F&B Co. Ltd. | 79 | 17,641 | ||||||
Dongwon Industries Co. Ltd. | 2,520 | 797,491 | ||||||
Dutch Lady Milk Industries Bhd. | 700 | 12,082 | ||||||
Edita Food Industries SAE | 27,033 | 30,652 | ||||||
Farmsco | 688 | 7,633 | ||||||
Felda Global Ventures Holdings Bhd. | 106,100 | 46,242 | ||||||
Genting Plantations Bhd. | 10,400 | 26,242 | ||||||
GFPT PCL, NVDR | 8,600 | 3,352 | ||||||
GlaxoSmithKline Consumer Healthcare Ltd. | 442 | 40,404 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Great Wall Enterprise Co. Ltd. | 72,800 | $ | 94,363 | |||||
Gruma SAB de CV, Class B | 11,400 | 138,648 | ||||||
Grupo Bimbo SAB de CV, Series A* | 120,000 | 278,115 | ||||||
Grupo Herdez SAB de CV | 26,800 | 63,882 | ||||||
Grupo Lala SAB de CV(a) | 35,400 | 45,084 | ||||||
Grupo Nutresa SA | 16,080 | 155,711 | ||||||
Haitai Confectionery & Foods Co. Ltd. | 946 | 13,994 | ||||||
Hatsun Agro Products Ltd. | 2,184 | 25,777 | ||||||
Health and Happiness H&H International Holdings Ltd.* | 10,000 | 71,991 | ||||||
Indofood CBP Sukses Makmur Tbk. PT | 111,600 | 69,587 | ||||||
Indofood Sukses Makmur Tbk. PT | 252,000 | 126,340 | ||||||
Industrias Bachoco SAB de CV, Series B | 7,300 | 37,448 | ||||||
IOI Corp. Bhd. | 168,000 | 205,103 | ||||||
Japfa Comfeed Indonesia Tbk. PT | 7,681,900 | 833,759 | ||||||
JBS SA | 120,000 | 301,058 | ||||||
Jeil Holdings Co. Ltd. | 83,640 | 1,221,651 | ||||||
Kaveri Seed Co. Ltd. | 516 | 4,134 | ||||||
Kernel Holding SA | 5,304 | 72,284 | ||||||
Khon Kaen Sugar Industry PCL, NVDR | 72,800 | 7,197 | ||||||
KRBL Ltd. | 2,726 | 18,315 | ||||||
Kuala Lumpur Kepong Bhd. | 29,000 | 188,332 | ||||||
Lien Hwa Industrial Corp. | 51,660 | 66,176 | ||||||
Lotte Food Co. Ltd. | 86 | 59,988 | ||||||
M Dias Branco SA* | 6,500 | 82,002 | ||||||
Marfrig Global Foods SA* | 14,400 | 32,700 | ||||||
Mayora Indah Tbk. PT | 197,600 | 41,899 | ||||||
Minerva SA* | 168,000 | 394,988 | ||||||
Namchow Holdings Co. Ltd. | 6,000 | 12,229 | ||||||
Namyang Dairy Products Co. Ltd. | 35 | 22,218 | ||||||
Nestle India Ltd. | 1,320 | 185,847 | ||||||
Nestle Malaysia Bhd. | 2,300 | 80,897 | ||||||
Nong Shim Holdings Co. Ltd. | 134 | 13,362 | ||||||
NongShim Co. Ltd. | 208 | 63,098 | ||||||
Oceana Group Ltd. | 3,395 | 22,436 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 147 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food Products – (continued) | ||||||||
Orion Holdings Corp. | 43,701 | $ | 1,002,457 | |||||
Ottogi Corp. | 94 | 69,881 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk. PT | 122,600 | 11,103 | ||||||
Pioneer Foods Group Ltd. | 6,240 | 60,952 | ||||||
PPB Group Bhd. | 24,000 | 117,691 | ||||||
Pulmuone Co. Ltd. | 3,000 | 419,924 | ||||||
QL Resources Bhd. | 49,530 | 64,887 | ||||||
RCL Foods Ltd. | 491,400 | 716,410 | ||||||
Salim Ivomas Pratama Tbk. PT | 6,060,000 | 246,102 | ||||||
Samyang Corp. | 6,000 | 500,538 | ||||||
Samyang Foods Co. Ltd. | 86 | 7,255 | ||||||
Samyang Holdings Corp. | 11,040 | 1,147,362 | ||||||
San Miguel Food and Beverage, Inc. | 456,000 | 572,319 | ||||||
Sao Martinho SA | 7,300 | 35,540 | ||||||
Sarawak Oil Palms Bhd. | 10,300 | 9,451 | ||||||
Sawit Sumbermas Sarana Tbk. PT | 135,700 | 12,777 | ||||||
SLC Agricola SA | 3,800 | 48,724 | ||||||
SPC Samlip Co. Ltd. | 191 | 23,069 | ||||||
Standard Foods Corp. | 17,652 | 39,735 | ||||||
Taokaenoi Food & Marketing PCL, Class R, NVDR | 48,800 | 23,194 | ||||||
Tata Global Beverages Ltd. | 12,584 | 56,104 | ||||||
Thai Union Group PCL, NVDR | 114,400 | 65,247 | ||||||
Thai Vegetable Oil PCL, NVDR | 15,570 | 17,390 | ||||||
Tiger Brands Ltd. | 10,680 | 332,794 | ||||||
Tingyi Cayman Islands Holding Corp. | 110,000 | 208,556 | ||||||
Tongaat Hulett Ltd. | 198,480 | 1,431,393 | ||||||
TSH Resources Bhd. | 62,300 | 20,483 | ||||||
Ulker Biskuvi Sanayi A/S* | 9,138 | 47,879 | ||||||
Uni-President China Holdings Ltd. | 69,000 | 65,587 | ||||||
Uni-President Enterprises Corp. | 286,000 | 692,126 | ||||||
United Plantations Bhd. | 3,700 | 25,085 | ||||||
Universal Robina Corp. | 52,800 | 143,352 | ||||||
Want Want China Holdings Ltd.(a) | 380,000 | 337,477 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Yashili International Holdings Ltd.* | 34,000 | $ | 7,711 | |||||
Yihai International Holding Ltd. | 27,000 | 37,086 | ||||||
Zhou Hei Ya International Holdings Co. Ltd.(a) (b) | 43,000 | 37,914 | ||||||
17,829,197 | ||||||||
Gas Utilities – 0.3% | ||||||||
Aygaz A/S | 7,701 | 25,536 | ||||||
China Gas Holdings Ltd. | 133,640 | 476,784 | ||||||
China Resources Gas Group Ltd.(a) | 42,000 | 155,461 | ||||||
China Tian Lun Gas Holdings Ltd. | 39,000 | 27,033 | ||||||
Cia de Gas de Sao Paulo – COMGAS (Preference), Class A | 2,600 | 44,244 | ||||||
ENN Energy Holdings Ltd. | 43,000 | 404,345 | ||||||
GAIL India Ltd. | 32,958 | 160,543 | ||||||
Grupo Energia Bogota SA ESP | 98,072 | 71,925 | ||||||
Gujarat Gas Ltd. | 774 | 10,253 | ||||||
Gujarat State Petronet Ltd. | 8,528 | 22,802 | ||||||
Infraestructura Energetica Nova SAB de CV | 29,200 | 127,996 | ||||||
Korea Gas Corp.* | 3,840 | 197,025 | ||||||
Mahanagar Gas Ltd.(b) | 1,456 | 19,403 | ||||||
Perusahaan Gas Negara Persero Tbk. PT | 2,760,000 | 393,790 | ||||||
Petronas Gas Bhd. | 26,700 | 121,268 | ||||||
SUI Northern Gas Pipeline | 41,600 | 40,941 | ||||||
Towngas China Co. Ltd.* | 58,339 | 52,182 | ||||||
2,351,531 | ||||||||
Health Care Equipment & Supplies – 0.1% | ||||||||
Dentium Co. Ltd. | 344 | 25,348 | ||||||
DIO Corp.* | 520 | 20,302 | ||||||
Ginko International Co. Ltd. | 3,000 | 25,451 | ||||||
Hartalega Holdings Bhd. | 96,000 | 143,627 | ||||||
Kossan Rubber Industries | 17,200 | 29,328 | ||||||
Lifetech Scientific Corp.* | 82,000 | 25,180 | ||||||
Microport Scientific Corp. | 11,035 | 12,908 | ||||||
Osstem Implant Co. Ltd.* | 612 | 31,515 | ||||||
Pihsiang Machinery Manufacturing Co. Ltd.* (c) | 5,000 | 2,924 |
See Accompanying Notes to the Financial Statements.
148 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H | 76,000 | $ | 46,869 | |||||
St Shine Optical Co. Ltd. | 3,000 | 81,118 | ||||||
Top Glove Corp. Bhd. | 41,600 | 100,832 | ||||||
Value Added Technology Co. Ltd. | 510 | 19,124 | ||||||
Yestar Healthcare Holdings Co. Ltd. | 75,000 | 25,993 | ||||||
590,519 | ||||||||
Health Care Providers & Services – 0.3% | ||||||||
Alliar Medicos A Frente SA* | 2,400 | 9,985 | ||||||
Apollo Hospitals Enterprise Ltd. | 5,520 | 90,236 | ||||||
Bangkok Chain Hospital PCL, NVDR | 72,800 | 40,137 | ||||||
Bangkok Dusit Medical Services PCL, NVDR | 252,000 | 179,658 | ||||||
Bumrungrad Hospital PCL, NVDR | 18,800 | 113,181 | ||||||
Celltrion Healthcare Co. Ltd.* | 2,685 | 225,751 | ||||||
Chabiotech Co. Ltd.* | 1,560 | 31,403 | ||||||
China Resources Phoenix Healthcare Holdings Co. Ltd. | 30,000 | 39,372 | ||||||
Chularat Hospital PCL, NVDR | 183,100 | 11,371 | ||||||
Dr Lal PathLabs Ltd.(b) | 430 | 5,439 | ||||||
Fleury SA | 7,200 | 53,901 | ||||||
Fortis Healthcare Ltd.* | 9,651 | 22,038 | ||||||
Global Cord Blood Corp.* | 2,900 | 27,115 | ||||||
IHH Healthcare Bhd. | 144,000 | 223,148 | ||||||
Instituto Hermes Pardini SA | 1,800 | 13,413 | ||||||
KPJ Healthcare Bhd. | 145,424 | 34,285 | ||||||
Life Healthcare Group Holdings Ltd.(a) | 78,283 | 184,988 | ||||||
Medipost Co. Ltd.* | 223 | 26,078 | ||||||
Mitra Keluarga Karyasehat Tbk. PT(b) | 312,000 | 43,170 | ||||||
Narayana Hrudayalaya Ltd.* (b) | 946 | 3,901 | ||||||
Netcare Ltd. | 79,261 | 196,760 | ||||||
Odontoprev SA | 14,200 | 61,194 | ||||||
Qualicorp SA | 13,400 | 93,554 |
Investments | Shares | Value | ||||||
Health Care Providers & Services – (continued) | ||||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | 115,300 | $ | 316,595 | |||||
Siloam International Hospitals Tbk. PT* | 32,500 | 16,411 | ||||||
Sinopharm Group Co. Ltd., Class H | 67,600 | 285,103 | ||||||
Universal Medical Financial & Technical Advisory Services Co. Ltd.(b) | 88,500 | 82,092 | ||||||
Vibhavadi Medical Center PCL, NVDR | 382,700 | 30,315 | ||||||
2,460,594 | ||||||||
Health Care Technology – 0.0%(e) | ||||||||
Alibaba Health Information Technology Ltd.* (a) | 130,000 | 65,760 | ||||||
Hotels, Restaurants & Leisure – 0.5% | ||||||||
Alsea SAB de CV | 24,300 | 89,995 | ||||||
AmRest Holdings SE* | 411 | 54,077 | ||||||
Berjaya Sports Toto Bhd. | 51,600 | 27,618 | ||||||
Bloomberry Resorts Corp. | 239,200 | 56,854 | ||||||
Central Plaza Hotel PCL | 1,600 | 2,662 | ||||||
Central Plaza Hotel PCL, NVDR | 31,200 | 51,901 | ||||||
China Travel International Investment Hong Kong Ltd. | 120,200 | 45,181 | ||||||
Coffee Day Enterprises Ltd.* (b) | 1,720 | 8,896 | ||||||
Cox & Kings Ltd. | 1,548 | 5,101 | ||||||
CVC Brasil Operadora e Agencia de Viagens SA | 7,800 | 129,691 | ||||||
Delta Corp. Ltd. | 1,376 | 5,574 | ||||||
DXB Entertainments PJSC* (b) | 221,980 | 23,327 | ||||||
EIH Ltd. | 3,182 | 8,396 | ||||||
Famous Brands Ltd.* | 4,669 | 41,702 | ||||||
Formosa International Hotels Corp. | 2,311 | 11,990 | ||||||
Genting Bhd. | 120,000 | 273,124 | ||||||
Genting Malaysia Bhd. | 192,000 | 251,041 | ||||||
Gourmet Master Co. Ltd. | 4,410 | 51,200 | ||||||
Grand Korea Leisure Co. Ltd. | 1,040 | 26,583 | ||||||
Haichang Ocean Park Holdings Ltd.* (b) | 49,000 | 11,987 | ||||||
Hana Tour Service, Inc. | 403 | 44,902 | ||||||
Imperial Pacific International Holdings Ltd.* | 2,970,000 | 36,329 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 149 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Indian Hotels Co. Ltd. (The) | 22,940 | $ | 50,854 | |||||
Jinmao Hotel and Jinmao China Hotel Investments and Management Ltd. | 68,000 | 41,589 | ||||||
Jollibee Foods Corp. | 26,400 | 145,393 | ||||||
Jubilant Foodworks Ltd. | 2,220 | 84,497 | ||||||
Kangwon Land, Inc. | 6,960 | 188,328 | ||||||
Magnum Bhd. | 59,900 | 27,328 | ||||||
Mahindra Holidays & Resorts India Ltd. | 1,872 | 9,192 | ||||||
Melco Resorts And Entertainment Philippines Corp.* | 17,200 | 2,273 | ||||||
Minor International PCL, NVDR | 144,000 | 183,650 | ||||||
MK Restaurants Group PCL, NVDR | 10,400 | 26,445 | ||||||
Modetour Network, Inc. | 520 | 18,087 | ||||||
OPAP SA | 13,200 | 158,366 | ||||||
Orbis SA | 832 | 22,796 | ||||||
Paradise Co. Ltd. | 2,112 | 46,173 | ||||||
Premium Leisure Corp. | 289,000 | 5,696 | ||||||
Thomas Cook India Ltd. | 2,244 | 9,752 | ||||||
Tsogo Sun Holdings Ltd. | 61,680 | 112,009 | ||||||
Wowprime Corp.* | 7,000 | 28,391 | ||||||
Xiabuxiabu Catering Management China Holdings Co. Ltd.(b) | 11,500 | 19,840 | ||||||
Yum China Holdings, Inc. | 22,400 | 957,824 | ||||||
3,396,614 | ||||||||
Household Durables – 0.8% | ||||||||
AmTRAN Technology Co. Ltd. | 26,000 | 11,204 | ||||||
Arcelik A/S | 16,680 | 74,184 | ||||||
Coway Co. Ltd. | 3,120 | 255,606 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 26,160 | 92,505 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 17,300 | 68,948 | ||||||
Dom Development SA | 13,653 | 350,701 | ||||||
Ez Tec Empreendimentos e Participacoes SA | 2,900 | 16,713 | ||||||
Fabryki Mebli Forte SA | 688 | 9,857 |
Investments | Shares | Value | ||||||
Household Durables – (continued) | ||||||||
Haier Electronics Group Co. Ltd.* | 74,000 | $ | 257,408 | |||||
Hanssem Co. Ltd. | 650 | 70,900 | ||||||
Kinpo Electronics | 2,280,000 | 809,153 | ||||||
LG Electronics, Inc. | 13,680 | 1,306,456 | ||||||
LG Electronics, Inc. (Preference) | 2,280 | 89,765 | ||||||
MRV Engenharia e Participacoes SA | 36,000 | 154,830 | ||||||
Nien Made Enterprise Co. Ltd. | 8,000 | 71,654 | ||||||
PIK Group PJSC* | 16,203 | 78,834 | ||||||
Skyworth Digital Holdings Ltd.(a) | 3,391,750 | 1,551,477 | ||||||
Socovesa SA | 23,620 | 15,870 | ||||||
Symphony Ltd. | 1,272 | 34,701 | ||||||
Tatung Co. Ltd.* | 104,000 | 78,211 | ||||||
TTK Prestige Ltd. | 202 | 18,788 | ||||||
Vestel Elektronik Sanayi ve Ticaret A/S* | 7,415 | 18,094 | ||||||
Whirlpool of India Ltd. | 1,664 | 39,380 | ||||||
Wuxi Little Swan Co. Ltd., Class B | 5,200 | 32,956 | ||||||
5,508,195 | ||||||||
Household Products – 0.2% | ||||||||
Hindustan Unilever Ltd. | 41,956 | 948,568 | ||||||
Jyothy Laboratories Ltd. | 1,650 | 8,977 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A | 58,000 | 104,808 | ||||||
Unilever Indonesia Tbk. PT | 72,000 | 239,871 | ||||||
Vinda International Holdings Ltd. | 20,000 | 34,657 | ||||||
1,336,881 | ||||||||
Independent Power and Renewable Electricity Producers – 1.6% | ||||||||
Aboitiz Power Corp. | 93,600 | 68,731 | ||||||
Adani Power Ltd.* | 43,621 | 16,797 | ||||||
AES Gener SA | 354,720 | 99,396 | ||||||
AES Tiete Energia SA | 2 | 1 | ||||||
AES Tiete Energia SA – UNIT | 5,573 | 18,216 | ||||||
AES Tiete Energia SA (Preference) | 30 | 20 | ||||||
B Grimm Power PCL, NVDR | 41,600 | 36,248 | ||||||
Banpu Power PCL, NVDR | 41,600 | 32,558 |
See Accompanying Notes to the Financial Statements.
150 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
BCPG PCL, NVDR | 41,600 | $ | 25,703 | |||||
Beijing Jingneng Clean Energy Co. Ltd., Class H | 3,600,000 | 908,228 | ||||||
Canvest Environmental Protection Group Co. Ltd.(a) (b) | 90,000 | 49,998 | ||||||
CGN New Energy Holdings Co. Ltd. | 2,160,000 | 291,734 | ||||||
CGN Power Co. Ltd., Class H(a) (b) | 1,320,000 | 361,609 | ||||||
China Everbright Greentech Ltd.* (b) | 34,000 | 31,885 | ||||||
China Longyuan Power Group Corp. Ltd., Class H | 390,000 | 385,615 | ||||||
China Power Clean Energy Development Co. Ltd. | 720,000 | 411,914 | ||||||
China Power International Development Ltd. | 544,332 | 146,344 | ||||||
China Resources Power Holdings Co. Ltd. | 214,000 | 412,280 | ||||||
Cia Energetica de Sao Paulo (Preference), Class B | 8,600 | 43,275 | ||||||
Cikarang Listrindo Tbk. PT(b) | 189,200 | 15,503 | ||||||
Colbun SA | 437,640 | 109,188 | ||||||
CPFL Energias Renovaveis SA | 10,400 | 45,653 | ||||||
Datang International Power Generation Co. Ltd., Class H | 5,166,000 | 1,704,831 | ||||||
Electricity Generating PCL, NVDR | 12,600 | 89,030 | ||||||
Energy Development Corp.* | 368,200 | 38,421 | ||||||
Eneva SA* | 2,500 | 9,534 | ||||||
Engie Brasil Energia SA | 12,000 | 127,270 | ||||||
First Gen Corp. | 2,260,539 | 680,571 | ||||||
Global Power Synergy PCL, NVDR | 17,200 | 41,147 | ||||||
Glow Energy PCL, NVDR | 24,800 | 67,776 | ||||||
Huadian Fuxin Energy Corp. Ltd., Class H | 4,664,000 | 1,331,171 | ||||||
Huadian Power International Corp. Ltd., Class H(a) | 2,948,000 | 1,202,000 | ||||||
Huaneng Power International, Inc., Class H | 524,000 | 348,521 |
Investments | Shares | Value | ||||||
Independent Power and Renewable Electricity Producers – (continued) | ||||||||
Huaneng Renewables Corp. Ltd., Class H | 540,000 | $ | 241,506 | |||||
Hub Power Co. Ltd. (The) | 31,200 | 27,823 | ||||||
Jaiprakash Power Ventures Ltd.* | 1,968,360 | 110,599 | ||||||
JSW Energy Ltd. | 22,880 | 29,054 | ||||||
Kot Addu Power Co. Ltd. | 863,500 | 447,926 | ||||||
Lopez Holdings Corp. | 3,360,000 | 280,490 | ||||||
Malakoff Corp. Bhd. | 188,100 | 43,387 | ||||||
NHPC Ltd. | 292,440 | 124,662 | ||||||
NTPC Ltd. | 118,320 | 305,196 | ||||||
OGK-2 PJSC | 54,331,200 | 391,595 | ||||||
Ratchaburi Electricity Generating Holding PCL, NVDR | 38,600 | 63,905 | ||||||
Reliance Power Ltd.* | 87,559 | 48,542 | ||||||
SPCG PCL, NVDR | 672,000 | 449,278 | ||||||
Superblock PCL, NVDR* | 638,800 | 23,277 | ||||||
Taiwan Cogeneration Corp. | 18,000 | 17,947 | ||||||
TPI Polene Power PCL, NVDR | 156,000 | 33,118 | ||||||
Unipro PJSC | 1,105,000 | 48,709 | ||||||
Zorlu Enerji Elektrik Uretim A/S* | 30,788 | 12,875 | ||||||
11,851,057 | ||||||||
Industrial Conglomerates – 1.6% | ||||||||
3M India Ltd.* | 131 | 40,285 | ||||||
Aamal Co. | 9,622 | 29,307 | ||||||
Aboitiz Equity Ventures, Inc. | 140,400 | 189,508 | ||||||
AG Anadolu Grubu Holding A/S | 3,744 | 20,169 | ||||||
Alfa SAB de CV, Class A | 372,000 | 475,543 | ||||||
Alliance Global Group, Inc.* | 552,000 | 139,095 | ||||||
AntarChile SA | 7,680 | 139,446 | ||||||
Beijing Enterprises Holdings Ltd. | 62,000 | 312,044 | ||||||
BGF Co. Ltd. | 889 | 10,571 | ||||||
Bidvest Group Ltd. (The) | 19,920 | 391,148 | ||||||
Boustead Holdings Bhd. | 31,200 | 20,437 | ||||||
CITIC Ltd. | 795,000 | 1,219,609 | ||||||
CJ Corp. | 840 | 127,803 | ||||||
CJ Corp. (Preference) | 208 | 14,139 | ||||||
DMCI Holdings, Inc. | 160,300 | 34,198 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 151 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Industrial Conglomerates – (continued) | ||||||||
Dogan Sirketler Grubu Holding A/S* | 43,291 | $ | 10,862 | |||||
Doosan Corp. | 1,587 | 179,792 | ||||||
Doosan Corp. (Preference) | 416 | 29,212 | ||||||
Dubai Investments PJSC | 157,320 | 81,376 | ||||||
Enka Insaat ve Sanayi A/S | 84,882 | 102,103 | ||||||
Far Eastern New Century Corp. | 480,000 | 460,751 | ||||||
Fosun International Ltd. | 300,000 | 644,475 | ||||||
Grupo Carso SAB de CV, Series A1 | 30,600 | 109,483 | ||||||
Grupo Industrial Saltillo SAB de CV | 372,000 | 582,297 | ||||||
Hanwha Corp. | 5,400 | 201,985 | ||||||
Hanwha Corp. (Preference) | 1,425 | 22,748 | ||||||
HAP Seng Consolidated Bhd. | 30,000 | 74,933 | ||||||
Hong Leong Industries Bhd. | 8,600 | 23,629 | ||||||
Hosken Consolidated Investments Ltd. | 79,200 | 932,033 | ||||||
Industries Qatar QSC | 9,000 | 276,847 | ||||||
Jaiprakash Associates Ltd.* | 41,807 | 12,466 | ||||||
JG Summit Holdings, Inc. | 168,000 | 207,608 | ||||||
KAP Industrial Holdings Ltd. | 63,408 | 44,748 | ||||||
KOC Holding A/S | 137,880 | 465,337 | ||||||
Kolon Corp. | 208 | 10,107 | ||||||
LG Corp. | 7,680 | 583,164 | ||||||
Lotte Corp.* | 1,974 | 120,320 | ||||||
LT Group, Inc. | 131,600 | 51,369 | ||||||
MMC Corp. Bhd. | 57,500 | 21,104 | ||||||
Mytilineos Holdings SA* | 13,200 | 159,482 | ||||||
Quinenco SA | 45,360 | 149,045 | ||||||
Reunert Ltd. | 3,945 | 24,649 | ||||||
Samsung C&T Corp. | 5,520 | 723,562 | ||||||
San Miguel Corp. | 55,200 | 149,335 | ||||||
Shanghai Industrial Holdings Ltd. | 51,000 | 134,514 | ||||||
Siemens Ltd. | 5,280 | 88,796 | ||||||
Sigdo Koppers SA | 16,555 | 31,664 | ||||||
Sime Darby Bhd. | 164,300 | 111,809 | ||||||
SK Holdings Co. Ltd. | 4,320 | 1,189,158 | ||||||
SM Investments Corp. | 28,800 | 523,135 | ||||||
Turkiye Sise ve Cam Fabrikalari A/S | 78,480 | 87,066 | ||||||
11,784,266 |
Investments | Shares | Value | ||||||
Insurance – 2.6% | ||||||||
Bajaj Finserv Ltd. | 2,040 | $ | 167,583 | |||||
Bangkok Life Assurance PCL, NVDR | 22,140 | 25,430 | ||||||
BB Seguridade Participacoes SA | 39,300 | 309,649 | ||||||
Cathay Financial Holding Co. Ltd. | 1,047,000 | 1,893,245 | ||||||
China Life Insurance Co. Ltd. | 208,760 | 227,201 | ||||||
China Life Insurance Co. Ltd., Class H | 431,000 | 1,235,626 | ||||||
China Pacific Insurance Group Co. Ltd., Class H | 168,000 | 748,141 | ||||||
China Reinsurance Group Corp., Class H | 720,000 | 152,289 | ||||||
China Taiping Insurance Holdings Co. Ltd. | 84,200 | 285,378 | ||||||
DB Insurance Co. Ltd. | 6,360 | 374,555 | ||||||
Discovery Ltd. | 27,480 | 381,369 | ||||||
Hanwha General Insurance Co. Ltd. | 97,178 | 683,308 | ||||||
Hanwha Life Insurance Co. Ltd. | 25,920 | 151,193 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 7,560 | 270,746 | ||||||
ICICI Lombard General Insurance Co. Ltd.(b) | 3,640 | 41,445 | ||||||
ICICI Prudential Life Insurance Co. Ltd.(b) | 10,400 | 66,430 | ||||||
ING Life Insurance Korea Ltd.(b) | 2,040 | 78,693 | ||||||
IRB Brasil Resseguros S/A | 7,200 | 97,646 | ||||||
Korean Reinsurance Co. | 14,160 | 156,442 | ||||||
Liberty Holdings Ltd.(a) | 15,600 | 165,613 | ||||||
Lotte Non-Life Insurance Co. Ltd. | 103,080 | 298,706 | ||||||
LPI Capital Bhd. | 9,127 | 38,290 | ||||||
Max Financial Services Ltd.* | 5,068 | 39,160 | ||||||
Mercuries & Associates Holding Ltd. | 16,385 | 13,346 | ||||||
Mercuries Life Insurance Co. Ltd.* | 104,000 | 56,945 | ||||||
Meritz Fire & Marine Insurance Co. Ltd. | 6,240 | 122,399 | ||||||
Mirae Asset Life Insurance Co. Ltd. | 217,560 | 1,114,230 |
See Accompanying Notes to the Financial Statements.
152 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
MMI Holdings Ltd. | 106,920 | $ | 190,565 | |||||
New China Life Insurance Co. Ltd., Class H | 42,400 | 199,621 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H | 881,000 | 418,709 | ||||||
PICC Property & Casualty Co. Ltd., Class H | 568,000 | 1,026,247 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H(a) | 300,000 | 2,964,355 | ||||||
Porto Seguro SA | 12,000 | 155,518 | ||||||
Powszechny Zaklad Ubezpieczen SA | 33,960 | 416,001 | ||||||
Qatar Insurance Co. SAQ | 19,733 | 197,709 | ||||||
Qualitas Controladora SAB de CV | 348,000 | 967,359 | ||||||
Rand Merchant Investment Holdings Ltd. | 50,280 | 165,939 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 1,920 | 480,876 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. (Preference) | 194 | 33,331 | ||||||
Samsung Life Insurance Co. Ltd. | 5,160 | 565,254 | ||||||
Sanlam Ltd. | 100,920 | 640,342 | ||||||
Santam Ltd. | 2,471 | 63,340 | ||||||
Shin Kong Financial Holding Co. Ltd. | 1,152,000 | 473,081 | ||||||
Sul America SA | 30,343 | 188,094 | ||||||
Tongyang Life Insurance Co. Ltd. | 3,474 | 26,802 | ||||||
Wiz Solucoes e Corretagem de Seguros SA | 3,900 | 11,137 | ||||||
ZhongAn Online P&C Insurance Co. Ltd., Class H* (b) | 8,100 | 56,816 | ||||||
18,436,154 | ||||||||
Internet & Direct Marketing Retail – 0.0%(e) | ||||||||
B2W Cia Digital* | 10,747 | 89,052 | ||||||
CJ O Shopping Co. Ltd. | 279 | 58,410 | ||||||
Cogobuy Group(b) | 20,000 | 9,760 | ||||||
GS Home Shopping, Inc. | 480 | 78,154 |
Investments | Shares | Value | ||||||
Internet & Direct Marketing Retail – (continued) | ||||||||
Hyundai Home Shopping Network Corp. | 293 | $ | 29,765 | |||||
Infibeam Incorporation Ltd. | 2,580 | 6,471 | ||||||
momo.com, Inc.* | 1,000 | 8,332 | ||||||
NS Shopping Co. Ltd. | 948 | 12,426 | ||||||
292,370 | ||||||||
Internet Software & Services – 2.5% | ||||||||
Ahnlab, Inc. | 190 | 11,403 | ||||||
HC International, Inc.(a) | 50,000 | 33,893 | ||||||
Info Edge India Ltd. | 4,075 | 75,763 | ||||||
Kakao Corp. | 3,033 | 315,213 | ||||||
NAVER Corp. | 1,735 | 1,163,110 | ||||||
PChome Online, Inc. | 5,763 | 26,978 | ||||||
SINA Corp.* | 3,400 | 324,836 | ||||||
Sohu.com, Inc.* (a) | 1,300 | 40,274 | ||||||
Tencent Holdings Ltd. | 326,000 | 16,241,328 | ||||||
Tian Ge Interactive Holdings Ltd.(b) | 25,000 | 21,406 | ||||||
18,254,204 | ||||||||
IT Services – 0.9% | ||||||||
AGTech Holdings Ltd.* | 84,000 | 9,205 | ||||||
Chinasoft International Ltd.* | 74,000 | 54,782 | ||||||
Cielo SA | 65,100 | 358,380 | ||||||
Digital China Holdings Ltd.* | 58,000 | 33,182 | ||||||
eClerx Services Ltd. | 728 | 14,555 | ||||||
EOH Holdings Ltd. | 5,439 | 16,530 | ||||||
HCL Technologies Ltd. | 32,520 | 512,967 | ||||||
Hexaware Technologies Ltd. | 3,640 | 24,483 | ||||||
Infosys Ltd. | 118,440 | 2,128,690 | ||||||
Larsen & Toubro Infotech Ltd.(b) | 1,456 | 34,228 | ||||||
Mindtree Ltd. | 4,608 | 74,885 | ||||||
Mphasis Ltd. | 3,418 | 53,075 | ||||||
My EG Services Bhd. | 124,800 | 83,338 | ||||||
Nan Hai Corp. Ltd. | 3,050,000 | 79,279 | ||||||
Persistent Systems Ltd. | 900 | 10,891 | ||||||
Posco ICT Co. Ltd. | 2,080 | 13,671 | ||||||
Samsung SDS Co. Ltd. | 2,400 | 550,536 | ||||||
SONDA SA | 24,083 | 44,483 | ||||||
Systex Corp.* | 9,000 | 19,529 | ||||||
Tata Consultancy Services Ltd. | 27,240 | 1,441,630 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 153 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
Tech Mahindra Ltd. | 28,200 | $ | 283,352 | |||||
TravelSky Technology Ltd., Class H | 49,000 | 144,223 | ||||||
Vakrangee Ltd. | 32,738 | 49,029 | ||||||
Wipro Ltd. | 66,960 | 279,669 | ||||||
6,314,592 | ||||||||
Leisure Products – 0.0%(e) | ||||||||
Giant Manufacturing Co. Ltd. | 13,000 | 66,568 | ||||||
Goodbaby International Holdings Ltd. | 59,000 | 37,588 | ||||||
HLB, Inc.* | 936 | 106,478 | ||||||
KMC Kuei Meng International, Inc. | 3,158 | 13,929 | ||||||
Merida Industry Co. Ltd. | 9,350 | 41,873 | ||||||
266,436 | ||||||||
Life Sciences Tools & Services – 0.1% | ||||||||
Divi’s Laboratories Ltd. | 4,147 | 74,408 | ||||||
Genscript Biotech Corp. | 30,000 | 101,870 | ||||||
Samsung Biologics Co. Ltd.* (b) | 960 | 438,631 | ||||||
ST Pharm Co. Ltd. | 344 | 12,819 | ||||||
Syngene International Ltd.(b) | 860 | 8,041 | ||||||
Wuxi Biologics Cayman, Inc.* (b) | 11,500 | 105,135 | ||||||
740,904 | ||||||||
Machinery – 0.7% | ||||||||
AIA Engineering Ltd. | 1,599 | 34,593 | ||||||
Airtac International Group | 6,784 | 118,316 | ||||||
Ashok Leyland Ltd. | 72,840 | 179,481 | ||||||
BEML Ltd. | 768 | 12,270 | ||||||
China Conch Venture Holdings Ltd. | 102,000 | 318,415 | ||||||
China International Marine Containers Group Co. Ltd., Class H | 20,800 | 33,234 | ||||||
China Yuchai International Ltd. | 31,000 | 645,110 | ||||||
CIMC Enric Holdings Ltd.* | 36,000 | 37,659 | ||||||
CRRC Corp. Ltd., Class H | 240,000 | 213,449 | ||||||
CSSC Offshore and Marine Engineering Group Co. Ltd., Class H | 18,000 | 23,531 |
Investments | Shares | Value | ||||||
Machinery – (continued) | ||||||||
Cummins India Ltd. | 3,848 | $ | 44,367 | |||||
Doosan Bobcat, Inc. | 1,462 | 44,625 | ||||||
Doosan Infracore Co. Ltd.* | 17,160 | 164,683 | ||||||
Eicher Motors Ltd. | 792 | 370,113 | ||||||
Escorts Ltd. | 1,997 | 30,051 | ||||||
Famur SA* | 1,118 | 1,908 | ||||||
Grupo Rotoplas SAB de CV* | 8,600 | 12,999 | ||||||
Haitian International Holdings Ltd. | 30,000 | 79,890 | ||||||
Hiwin Technologies Corp. | 11,867 | 180,493 | ||||||
Hyundai Construction Equipment Co. Ltd.* | 312 | 55,503 | ||||||
Hyundai Elevator Co. Ltd. | 633 | 61,638 | ||||||
Hyundai Heavy Industries Co. Ltd.* | 1,790 | 200,276 | ||||||
Hyundai Heavy Industries Holdings Co. Ltd.* | 600 | 237,348 | ||||||
Hyundai Mipo Dockyard Co. Ltd.* | 624 | 52,290 | ||||||
Hyundai Rotem Co. Ltd.* | 1,341 | 33,523 | ||||||
Jain Irrigation Systems Ltd. | 7,396 | 12,938 | ||||||
KC Co. Ltd. | 312 | 5,989 | ||||||
King Slide Works Co. Ltd. | 3,000 | 42,536 | ||||||
Kinik Co. | 7,000 | 18,312 | ||||||
Lakshmi Machine Works Ltd. | 148 | 18,676 | ||||||
Lonking Holdings Ltd. | 104,000 | 47,705 | ||||||
Marcopolo SA (Preference) | 31,900 | 37,317 | ||||||
Otokar Otomotiv Ve Savunma Sanayi A/S | 18 | 356 | ||||||
Rechi Precision Co. Ltd. | 21,969 | 23,798 | ||||||
Samsung Heavy Industries Co. Ltd.* | 26,829 | 184,629 | ||||||
Shanghai Zhenhua Heavy Industries Co. Ltd., Class B | 31,200 | 16,099 | ||||||
Shin Zu Shing Co. Ltd. | 4,000 | 10,586 | ||||||
Sinotruk Hong Kong Ltd.(a) | 74,500 | 87,901 | ||||||
SKF India Ltd. | 624 | 17,505 | ||||||
Sunonwealth Electric Machine Industry Co. Ltd. | 8,000 | 9,842 | ||||||
Syncmold Enterprise Corp.* | 240,000 | 527,268 | ||||||
Thermax Ltd. | 2,214 | 37,740 | ||||||
United Wagon Co. PJSC* | 4,680 | 53,544 | ||||||
WEG SA | 62,400 | 318,110 |
See Accompanying Notes to the Financial Statements.
154 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Weichai Power Co. Ltd., Class H | 250,000 | $ | 291,785 | |||||
Yungtay Engineering Co. Ltd. | 19,000 | 33,265 | ||||||
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H | 34,400 | 14,859 | ||||||
4,996,525 | ||||||||
Marine – 0.3% | ||||||||
Cia Sud Americana de Vapores SA* | 797,784 | 35,865 | ||||||
COSCO SHIPPING Development Co. Ltd., Class H* | 86,000 | 15,999 | ||||||
COSCO SHIPPING Energy Transportation Co. Ltd., Class H | 2,330,000 | 1,154,869 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class H* (a) | 83,500 | 42,770 | ||||||
Evergreen Marine Corp. Taiwan Ltd.* | 104,000 | 53,078 | ||||||
Grindrod Ltd.* | 14,604 | 16,822 | ||||||
Hyundai Merchant Marine Co. Ltd.* | 10,455 | 59,418 | ||||||
Korea Line Corp.* | 520 | 13,973 | ||||||
MISC Bhd. | 72,000 | 131,393 | ||||||
Pan Ocean Co. Ltd.* | 13,007 | 66,981 | ||||||
Qatar Navigation QSC | 7,132 | 110,085 | ||||||
Sinotrans Shipping Ltd. | 52,000 | 13,516 | ||||||
U-Ming Marine Transport Corp. | 25,000 | 30,757 | ||||||
Wan Hai Lines Ltd. | 61,000 | 35,359 | ||||||
Wisdom Marine Lines Co. Ltd.* | 13,839 | 13,214 | ||||||
Yang Ming Marine Transport Corp.* | 53,000 | 18,451 | ||||||
1,812,550 | ||||||||
Media – 1.4% | ||||||||
Alibaba Pictures Group Ltd.* (a) | 680,000 | 77,113 | ||||||
Astro Malaysia Holdings Bhd. | 144,000 | 70,101 | ||||||
BEC World PCL, NVDR | 37,000 | 12,193 | ||||||
Cheil Worldwide, Inc. | 3,237 | 57,887 |
Investments | Shares | Value | ||||||
Media – (continued) | ||||||||
CJ CGV Co. Ltd. | 670 | $ | 46,609 | |||||
CJ E&M Corp. | 863 | 73,125 | ||||||
CJ Hello Co. Ltd. | 43,800 | 350,220 | ||||||
Cyfrowy Polsat SA | 13,080 | 95,792 | ||||||
DB Corp. Ltd.* | 1,806 | 8,113 | ||||||
Dish TV India Ltd.* | 17,517 | 19,790 | ||||||
Global Mediacom Tbk. PT | 12,180,000 | 507,774 | ||||||
Grupo Televisa SAB | 132,000 | 471,716 | ||||||
Huayi Tencent Entertainment Co. Ltd.* | 400,000 | 23,190 | ||||||
IMAX China Holding, Inc.* (b) | 1,900 | 6,355 | ||||||
Innocean Worldwide, Inc. | 520 | 32,328 | ||||||
Jagran Prakashan Ltd. | 3,698 | 9,442 | ||||||
Jcontentree Corp.* | 1,892 | 13,038 | ||||||
Kakao M Corp. | 236 | 19,776 | ||||||
KT Skylife Co. Ltd. | 37,320 | 436,777 | ||||||
Major Cineplex Group PCL, NVDR | 25,300 | 23,448 | ||||||
Media Nusantara Citra Tbk. PT | 312,000 | 29,714 | ||||||
Megacable Holdings SAB de CV | 10,400 | 47,620 | ||||||
Multiplus SA | 3,500 | 28,701 | ||||||
Nasmedia Co. Ltd. | 172 | 11,321 | ||||||
Naspers Ltd., Class N | 25,920 | 6,352,313 | ||||||
Phoenix Media Investment Holdings Ltd. | 2,802,000 | 299,899 | ||||||
Plan B Media PCL, NVDR | 72,800 | 13,610 | ||||||
PVR Ltd. | 1,040 | 22,466 | ||||||
RS PCL, NVDR* | 22,500 | 19,605 | ||||||
SBS Media Holdings Co. Ltd.* | 100,320 | 278,027 | ||||||
SM Entertainment Co. Ltd.* | 831 | 27,815 | ||||||
SMI Holdings Group Ltd. | 72,000 | 31,192 | ||||||
Smiles Fidelidade SA* | 3,400 | 70,190 | ||||||
Sun TV Network Ltd. | 4,576 | 60,323 | ||||||
Surya Citra Media Tbk. PT | 342,700 | 63,059 | ||||||
TV18 Broadcast Ltd.* | 16,016 | 15,322 | ||||||
VGI Global Media PCL, NVDR | 114,400 | 27,911 | ||||||
Workpoint Entertainment PCL, NVDR | 10,400 | 20,431 | ||||||
Zee Entertainment Enterprises Ltd. | 32,880 | 289,708 | ||||||
10,064,014 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 155 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – 4.7% | ||||||||
African Rainbow Minerals Ltd. | 12,381 | $ | 101,547 | |||||
Alrosa PJSC | 314,760 | 447,882 | ||||||
Aluminum Corp. of China Ltd., Class H* (a) | 240,000 | 137,305 | ||||||
Aneka Tambang Tbk. PT | 522,310 | 31,723 | ||||||
Angang Steel Co. Ltd., Class H(a) | 1,966,000 | 2,134,275 | ||||||
Anglo American Platinum Ltd. | 2,682 | 72,257 | ||||||
AngloGold Ashanti Ltd. | 24,240 | 218,153 | ||||||
Assore Ltd. | 5,160 | 127,064 | ||||||
Boryszew SA* | 1,548 | 3,906 | ||||||
Bradespar SA | 3,600 | 31,998 | ||||||
Bradespar SA (Preference) | 28,600 | 291,601 | ||||||
CAP SA | 9,600 | 111,919 | ||||||
China Metal Products | 480,000 | 499,687 | ||||||
China Metal Recycling Holdings Ltd.* ‡ (c) | 51,000 | — | ||||||
China Metal Resources Utilization Ltd.* (b) | 56,000 | 36,676 | ||||||
China Molybdenum Co. Ltd., Class H* (a) | 217,200 | 165,496 | ||||||
China Oriental Group Co. Ltd. | 110,000 | 79,610 | ||||||
China Steel Corp. | 738,000 | 586,180 | ||||||
China Zhongwang Holdings Ltd.(a) | 192,000 | 108,131 | ||||||
Chung Hung Steel Corp.* | 1,560,000 | 569,449 | ||||||
Cia Minera Milpo SAA | 11,024 | 17,659 | ||||||
Cia Siderurgica Nacional SA* | 38,200 | 96,165 | ||||||
Dongkuk Steel Mill Co. Ltd. | 105,840 | 1,090,061 | ||||||
Eregli Demir ve Celik Fabrikalari TAS* | 97,440 | 243,525 | ||||||
Feng Hsin Steel Co. Ltd. | 26,000 | 52,551 | ||||||
Gerdau SA | 9,000 | 36,308 | ||||||
Gerdau SA (Preference) | 52,382 | 250,067 | ||||||
Gloria Material Technology Corp. | 18,000 | 11,681 | ||||||
Gold Fields Ltd. | 45,600 | 171,204 | ||||||
Grupa Kety SA | 331 | 33,820 | ||||||
Grupo Mexico SAB de CV, Series B | 210,100 | 695,443 | ||||||
Grupo Simec SAB de CV, Series B* (a) | 10,400 | 33,688 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Harmony Gold Mining Co. Ltd.(a) | 686,640 | $ | 1,419,070 | |||||
Hengxing Gold Holding Co. Ltd.(b) | 420,000 | 481,636 | ||||||
Hindalco Industries Ltd. | 55,080 | 194,480 | ||||||
Honbridge Holdings Ltd.* | 208,000 | 37,369 | ||||||
Hyundai Steel Co. | 10,800 | 612,780 | ||||||
Impala Platinum Holdings Ltd.* (a) | 43,800 | 78,381 | ||||||
Industrias CH SAB de CV, Series B* | 6,600 | 32,652 | ||||||
Industrias Penoles SAB de CV | 7,200 | 150,477 | ||||||
Jastrzebska Spolka Weglowa SA* | 2,808 | 66,374 | ||||||
Jenax, Inc.* | 705 | 18,647 | ||||||
Jiangxi Copper Co. Ltd., Class H | 63,000 | 90,387 | ||||||
Jindal Stainless Hisar Ltd.* | 104,400 | 288,766 | ||||||
Jindal Stainless Ltd.* | 179,160 | 247,640 | ||||||
Jindal Steel & Power Ltd.* | 20,072 | 75,819 | ||||||
JSW Steel Ltd. | 60,360 | 293,932 | ||||||
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class D* | 17,887 | 17,908 | ||||||
KGHM Polska Miedz SA | 8,160 | 218,081 | ||||||
KISWIRE Ltd. | 13,331 | 365,712 | ||||||
Korea Zinc Co. Ltd. | 720 | 292,234 | ||||||
Koza Altin Isletmeleri A/S* | 3,880 | 43,255 | ||||||
Koza Anadolu Metal Madencilik Isletmeleri A/S* | 21,292 | 30,116 | ||||||
Krakatau Steel Persero Tbk. PT* | 6,996,000 | 221,257 | ||||||
Kumba Iron Ore Ltd. | 3,360 | 72,278 | ||||||
Maanshan Iron & Steel Co. Ltd., Class H* | 3,120,000 | 1,550,409 | ||||||
Magnitogorsk Iron & Steel Works PJSC | 201,840 | 156,022 | ||||||
Mechel PJSC* | 340,920 | 650,705 | ||||||
Mechel PJSC (Preference) | 152,160 | 317,847 | ||||||
Metalurgica Gerdau SA (Preference) | 1,188,000 | 2,663,692 | ||||||
MMC Norilsk Nickel PJSC | 3,266 | 560,828 | ||||||
MMC Norilsk Nickel PJSC, ADR | 7,652 | 131,576 |
See Accompanying Notes to the Financial Statements.
156 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
MMG Ltd.* | 132,000 | $ | 99,401 | |||||
MOIL Ltd. | 2,808 | 8,636 | ||||||
National Aluminium Co. Ltd. | 27,956 | 33,741 | ||||||
Nickel Asia Corp. | 101,064 | 10,155 | ||||||
NMDC Ltd. | 47,280 | 88,553 | ||||||
Northam Platinum Ltd.* | 24,591 | 76,056 | ||||||
Novolipetsk Steel PJSC | 121,920 | 312,004 | ||||||
Philex Mining Corp. | 66,900 | 7,304 | ||||||
Polyus PJSC | 1,320 | 83,737 | ||||||
Poongsan Corp. | 2,400 | 85,726 | ||||||
POSCO | 10,080 | 3,515,566 | ||||||
Press Metal Aluminium Holdings Bhd. | 132,000 | 162,498 | ||||||
Raspadskaya OJSC* | 2,924 | 4,518 | ||||||
Seah Besteel Corp. | 1,449 | 36,630 | ||||||
SeAH Steel Corp. | 6,960 | 606,691 | ||||||
Severstal PJSC | 22,320 | 358,640 | ||||||
Shougang Fushan Resources Group Ltd.(a) | 6,960,000 | 1,729,303 | ||||||
Sibanye Gold Ltd.* | 228,757 | 201,202 | ||||||
Stalprodukt SA | 3,720 | 486,798 | ||||||
Steel Authority of India Ltd.* | 52,312 | 60,863 | ||||||
TA Chen Stainless Pipe* | 1,340,012 | 1,539,905 | ||||||
Tata Steel Ltd. | 13,080 | 116,601 | ||||||
Ton Yi Industrial Corp. | 38,000 | 16,183 | ||||||
Tung Ho Steel Enterprise Corp. | 32,000 | 26,661 | ||||||
Usinas Siderurgicas de Minas Gerais SA (Preference), Class A | 23,300 | 72,819 | ||||||
Vale Indonesia Tbk. PT* | 134,900 | 30,640 | ||||||
Vale SA* | 206,200 | 2,877,471 | ||||||
Vedanta Ltd. | 100,800 | 450,685 | ||||||
Volcan Cia Minera SAA, Class B | 311,640 | 112,320 | ||||||
Yeong Guan Energy Technology Group Co. Ltd. | 149,000 | 408,930 | ||||||
Yieh Phui Enterprise Co. Ltd. | 149,344 | 51,991 | ||||||
Young Poong Corp. | 120 | 94,827 | ||||||
Zhaojin Mining Industry Co. Ltd., Class H(a) | 36,000 | 28,348 | ||||||
Zijin Mining Group Co. Ltd., Class H | 720,000 | 332,100 | ||||||
33,994,864 |
Investments | Shares | Value | ||||||
Multiline Retail – 0.4% | ||||||||
Aeon Co. M Bhd. | 28,000 | $ | 14,416 | |||||
El Puerto de Liverpool SAB de CV, Class C1 | 10,400 | 69,093 | ||||||
Far Eastern Department Stores Ltd. | 143,012 | 94,257 | ||||||
Future Retail Ltd.* | 7,735 | 69,921 | ||||||
Golden Eagle Retail Group Ltd. | 27,000 | 31,065 | ||||||
Grupo Sanborns SAB de CV | 25,800 | 26,539 | ||||||
Hyundai Department Store Co. Ltd. | 2,040 | 197,687 | ||||||
Lojas Americanas SA* | 5,250 | 22,444 | ||||||
Lojas Americanas SA (Preference)* | 44,100 | 252,256 | ||||||
Lojas Renner SA | 42,020 | 392,887 | ||||||
Lotte Shopping Co. Ltd. | 878 | 210,447 | ||||||
Magazine Luiza SA | 3,100 | 94,848 | ||||||
Matahari Department Store Tbk. PT | 312,000 | 232,108 | ||||||
Mitra Adiperkasa Tbk. PT | 25,800 | 15,299 | ||||||
Poya International Co. Ltd. | 4,161 | 46,270 | ||||||
Rimo International Lestari Tbk. PT* | 1,049,100 | 10,406 | ||||||
Ripley Corp. SA | 50,856 | 54,969 | ||||||
Robinson PCL, NVDR | 24,900 | 51,875 | ||||||
SACI Falabella | 69,480 | 674,367 | ||||||
Shinsegae, Inc. | 894 | 349,464 | ||||||
Taiwan FamilyMart Co. Ltd. | 3,000 | 17,947 | ||||||
Woolworths Holdings Ltd. | 57,840 | 297,685 | ||||||
3,226,250 | ||||||||
Multi-Utilities – 0.0%(e) | ||||||||
Qatar Electricity & Water Co. QSC | 1,456 | 79,178 | ||||||
YTL Corp. Bhd. | 353,626 | 130,689 | ||||||
492,000 | 115,366 | |||||||
325,233 | ||||||||
Oil, Gas & Consumable Fuels – 6.1% | ||||||||
Adani Green Energy Ltd.* (c) | 11,634 | 4,226 | ||||||
Adaro Energy Tbk. PT | 960,000 | 126,620 | ||||||
Aegis Logistics Ltd. | 1,720 | 7,454 | ||||||
Bangchak Corp. PCL, NVDR | 41,600 | 47,782 | ||||||
Banpu PCL, NVDR | 294,600 | 181,091 | ||||||
Bashneft PJSC | 4,680 | 164,161 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 157 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Bashneft PJSC (Preference) | 3,720 | $ | 108,394 | |||||
Bharat Petroleum Corp. Ltd. | 45,360 | 263,263 | ||||||
Bukit Asam Tbk. PT | 362,300 | 84,374 | ||||||
Bumi Resources Tbk. PT* | 1,552,600 | 26,783 | ||||||
Chennai Petroleum Corp. Ltd. | 65,880 | 316,913 | ||||||
China Coal Energy Co. Ltd., Class H | 240,000 | 104,584 | ||||||
China Petroleum & Chemical Corp., Class H | 3,206,000 | 3,133,185 | ||||||
China Shenhua Energy Co. Ltd., Class H | 428,500 | 1,062,480 | ||||||
CNOOC Ltd. | 960,000 | 1,609,735 | ||||||
Coal India Ltd. | 77,760 | 332,059 | ||||||
Cosan SA Industria e Comercio | 18,600 | 212,148 | ||||||
Dana Gas PJSC | 111,280 | 29,993 | ||||||
Ecopetrol SA | 575,640 | 635,299 | ||||||
Empresas COPEC SA | 30,360 | 496,951 | ||||||
Energy Absolute PCL, NVDR | 84,000 | 95,817 | ||||||
Esso Thailand PCL, NVDR* | 135,200 | 76,682 | ||||||
Exxaro Resources Ltd. | 31,560 | 281,376 | ||||||
Formosa Petrochemical Corp. | 120,000 | 492,792 | ||||||
Gazprom PJSC | 1,393,482 | 3,229,039 | ||||||
Gazprom PJSC, ADR | 61,539 | 284,802 | ||||||
Great Eastern Shipping Co. Ltd. (The) | 87,960 | 484,017 | ||||||
Grupa Lotos SA | 10,560 | 166,730 | ||||||
GS Holdings Corp. | 6,240 | 358,141 | ||||||
Hellenic Petroleum SA | 6,163 | 62,920 | ||||||
Hengyuan Refining Co. Bhd. | 207,500 | 400,350 | ||||||
Hindustan Petroleum Corp. Ltd. | 77,520 | 353,684 | ||||||
Indian Oil Corp. Ltd. | 258,000 | 627,411 | ||||||
Indika Energy Tbk. PT* | 65,000 | 15,932 | ||||||
Indo Tambangraya Megah Tbk. PT | 41,600 | 70,716 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B | 132,000 | 171,336 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class H | 20,800 | 24,276 | ||||||
IRPC PCL, NVDR | 624,000 | 139,392 | ||||||
Kunlun Energy Co. Ltd.(a) | 176,000 | 151,371 | ||||||
Lubelski Wegiel Bogdanka SA | 588 | 9,213 | ||||||
LUKOIL PJSC | 60,000 | 3,960,102 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Mangalore Refinery & Petrochemicals Ltd. | 15,060 | $ | 24,382 | |||||
Mari Petroleum Co. Ltd. | 1,640 | 21,822 | ||||||
Medco Energi Internasional Tbk. PT* | 11,188,366 | 965,034 | ||||||
MOL Hungarian Oil & Gas plc | 60,240 | 696,942 | ||||||
Motor Oil Hellas Corinth Refineries SA | 8,520 | 203,613 | ||||||
National Refinery Ltd. | 54,000 | 190,712 | ||||||
Novatek PJSC | 53,640 | 655,853 | ||||||
Oil & Gas Development Co. Ltd. | 84,000 | 121,185 | ||||||
Oil & Natural Gas Corp. Ltd. | 357,360 | 966,757 | ||||||
Oil India Ltd. | 35,459 | 123,501 | ||||||
Pakistan Oilfields Ltd. | 5,200 | 30,566 | ||||||
Pakistan Petroleum Ltd. | 60,000 | 111,252 | ||||||
Pakistan State Oil Co. Ltd. | 27,129 | 79,657 | ||||||
PetroChina Co. Ltd., Class H | 1,236,000 | 911,852 | ||||||
Petroleo Brasileiro SA* | 174,700 | 1,233,725 | ||||||
Petroleo Brasileiro SA (Preference)* | 247,100 | 1,627,401 | ||||||
Petron Corp. | 226,600 | 40,679 | ||||||
Petron Malaysia Refining & Marketing Bhd. | 132,000 | 261,409 | ||||||
Petronas Dagangan Bhd. | 15,200 | 104,600 | ||||||
Petronet LNG Ltd. | 37,080 | 126,008 | ||||||
Pilipinas Shell Petroleum Corp. | 24,960 | 25,226 | ||||||
Polski Koncern Naftowy ORLEN SA | 17,280 | 442,388 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 197,040 | 347,544 | ||||||
PTT Exploration & Production PCL | 469 | 1,991 | ||||||
PTT Exploration & Production PCL, NVDR | 84,000 | 356,654 | ||||||
PTT PCL, NVDR | 1,080,000 | 1,933,460 | ||||||
Qatar Fuel QSC | 2,704 | 104,432 | ||||||
Qatar Gas Transport Co. Ltd. | 34,267 | 138,254 | ||||||
Reliance Industries Ltd. | 183,960 | 2,655,209 | ||||||
Rosneft Oil Co. PJSC | 143,720 | 874,064 | ||||||
Rosneft Oil Co. PJSC, GDR(b) | 6,040 | 36,808 | ||||||
RussNeft PJSC* | 4,992 | 40,863 | ||||||
Semirara Mining & Power Corp. | 49,800 | 29,688 |
See Accompanying Notes to the Financial Statements.
158 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Sinopec Kantons Holdings Ltd. | 56,000 | $ | 26,686 | |||||
SK Gas Ltd. | 7,262 | 638,455 | ||||||
SK Innovation Co. Ltd. | 7,800 | 1,435,045 | ||||||
S-Oil Corp. | 2,520 | 259,538 | ||||||
S-Oil Corp. (Preference) | 208 | 18,423 | ||||||
Star Petroleum Refining PCL, NVDR | 131,100 | 65,218 | ||||||
Surgutneftegas OJSC | 1,125,580 | 526,189 | ||||||
Surgutneftegas OJSC, ADR | 3,506 | 16,471 | ||||||
Surgutneftegas OJSC (Preference) | 823,560 | 405,597 | ||||||
Surgutneftegas OJSC, OTC, ADR | 12,172 | 59,643 | ||||||
Tatneft PJSC | 165,576 | 1,764,329 | ||||||
Tatneft PJSC, ADR | 5,424 | 349,848 | ||||||
Tatneft PJSC (Preference) | 18,840 | 142,252 | ||||||
Thai Oil PCL, NVDR | 108,000 | 322,529 | ||||||
Transneft PJSC (Preference) | 185 | 506,597 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 15,120 | 384,950 | ||||||
Ultrapar Participacoes SA | 25,100 | 435,042 | ||||||
United Tractors Tbk. PT | 84,000 | 205,887 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H(a) | 240,000 | 304,577 | ||||||
43,754,401 | ||||||||
Paper & Forest Products – 1.0% | ||||||||
Chung Hwa Pulp Corp. | 840,000 | 312,305 | ||||||
Duratex SA* | 16,474 | 50,541 | ||||||
Empresas CMPC SA | 75,240 | 307,666 | ||||||
Fibria Celulose SA | 13,400 | 264,373 | ||||||
Indah Kiat Pulp & Paper Corp. Tbk. PT | 135,200 | 128,276 | ||||||
Lee & Man Paper Manufacturing Ltd. | 172,000 | 191,324 | ||||||
Long Chen Paper Co. Ltd. | 34,522 | 40,547 | ||||||
Mondi Ltd. | 7,841 | 228,602 | ||||||
Nine Dragons Paper Holdings Ltd. | 88,000 | 132,758 | ||||||
Pabrik Kertas Tjiwi Kimia Tbk. PT | 2,268,000 | 1,679,094 | ||||||
Packages Ltd. | 94,400 | 426,634 | ||||||
Pfleiderer Group SA | 946 | 10,071 |
Investments | Shares | Value | ||||||
Paper & Forest Products – (continued) | ||||||||
Sappi Ltd. | 32,880 | $ | 210,443 | |||||
Shandong Chenming Paper Holdings Ltd., Class B | 708,000 | 1,003,148 | ||||||
Shandong Chenming Paper Holdings Ltd., Class H* (a) | 457,000 | 698,755 | ||||||
Suzano Papel e Celulose SA | 24,000 | 282,547 | ||||||
YFY, Inc. | 2,318,000 | 995,001 | ||||||
6,962,085 | ||||||||
Personal Products – 0.6% | ||||||||
Amorepacific Corp. | 1,867 | 610,068 | ||||||
Amorepacific Corp. (Preference) | 600 | 100,276 | ||||||
AMOREPACIFIC Group | 1,920 | 257,067 | ||||||
AMOREPACIFIC Group (Preference) | 312 | 16,855 | ||||||
Chlitina Holding Ltd.* | 3,000 | 19,772 | ||||||
Colgate-Palmolive India Ltd. | 2,518 | 42,377 | ||||||
Cosmax, Inc. | 322 | 47,333 | ||||||
Dabur India Ltd. | 33,240 | 183,980 | ||||||
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret A/S | 4,128 | 4,133 | ||||||
Emami Ltd. | 2,383 | 39,811 | ||||||
Gillette India Ltd. | 324 | 31,794 | ||||||
Godrej Consumer Products Ltd. | 15,120 | 253,069 | ||||||
Grape King Bio Ltd. | 5,000 | 42,080 | ||||||
Hengan International Group Co. Ltd. | 42,000 | 374,606 | ||||||
It’s Hanbul Co. Ltd. | 17,160 | 959,180 | ||||||
Jayjun Cosmetic Co. Ltd.* | 756 | 18,297 | ||||||
Kolmar BNH Co. Ltd. | 688 | 20,001 | ||||||
Korea Kolmar Co. Ltd. | 643 | 49,246 | ||||||
LG Household & Health Care Ltd. | 600 | 769,627 | ||||||
LG Household & Health Care Ltd. (Preference) | 104 | 74,978 | ||||||
Marico Ltd. | 29,040 | 144,700 | ||||||
Natura Cosmeticos SA | 12,000 | 110,824 | ||||||
NUTRIBIOTECH Co. Ltd.* | 1,540 | 40,228 | ||||||
Procter & Gamble Hygiene & Health Care Ltd. | 688 | 98,311 | ||||||
TCI Co. Ltd. | 2,301 | 34,064 | ||||||
4,342,677 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 159 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – 0.9% | ||||||||
Abbott India Ltd. | 312 | $ | 28,889 | |||||
Adcock Ingram Holdings Ltd. | 5,074 | 27,638 | ||||||
Ajanta Pharma Ltd.* | 1,415 | 28,734 | ||||||
Alembic Pharmaceuticals Ltd. | 2,150 | 17,204 | ||||||
Alkem Laboratories Ltd. | 1,560 | 46,196 | ||||||
Aspen Pharmacare Holdings Ltd. | 24,480 | 527,829 | ||||||
Aurobindo Pharma Ltd. | 16,560 | 159,298 | ||||||
Beijing Tong Ren Tang Chinese Medicine Co. Ltd. | 10,000 | 17,176 | ||||||
Bukwang Pharmaceutical Co. Ltd. | 1,516 | 36,905 | ||||||
Cadila Healthcare Ltd.* | 14,770 | 91,256 | ||||||
Caregen Co. Ltd. | 258 | 21,644 | ||||||
Celltrion Pharm, Inc.* | 697 | 56,710 | ||||||
Center Laboratories, Inc.* | 7,194 | 17,191 | ||||||
China Grand Pharmaceutical and Healthcare Holdings Ltd.* | 48,000 | 36,023 | ||||||
China Medical System Holdings Ltd. | 85,000 | 209,677 | ||||||
China Resources Pharmaceutical Group Ltd.(b) | 85,500 | 118,310 | ||||||
China Traditional Chinese Medicine Holdings Co. Ltd. | 114,000 | 98,628 | ||||||
Chong Kun Dang Pharmaceutical Corp. | 257 | 28,153 | ||||||
Cipla Ltd. | 18,840 | 171,463 | ||||||
Consun Pharmaceutical Group Ltd. | 16,000 | 17,308 | ||||||
CSPC Pharmaceutical Group Ltd. | 262,000 | 674,341 | ||||||
Daewoong Co. Ltd. | 602 | 10,484 | ||||||
Daewoong Pharmaceutical Co. Ltd. | 266 | 44,331 | ||||||
Dong-A Socio Holdings Co. Ltd. | 104 | 12,269 | ||||||
Dong-A ST Co. Ltd. | 299 | 30,794 | ||||||
DongKook Pharmaceutical Co. Ltd. | 450 | 29,577 | ||||||
Dr Reddy’s Laboratories Ltd. | 4,920 | 155,536 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Egyptian International Pharmaceuticals EIPICO | 1,429 | $ | 11,180 | |||||
Genomma Lab Internacional SAB de CV, Class B* | 32,700 | 31,669 | ||||||
GlaxoSmithKline Pharmaceuticals Ltd. | 948 | 33,291 | ||||||
Glenmark Pharmaceuticals Ltd. | 7,280 | 62,361 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H | 6,000 | 23,164 | ||||||
Hanall Biopharma Co. Ltd.* | 1,501 | 42,934 | ||||||
Hanmi Pharm Co. Ltd. | 366 | 159,689 | ||||||
Hanmi Science Co. Ltd. | 1,831 | 133,376 | ||||||
Hua Han Health Industry Holdings Ltd.* (c) | 3,780,000 | 255,267 | ||||||
Hypera SA* | 19,600 | 177,022 | ||||||
Il Dong Pharmaceutical Co. Ltd. | 457 | 10,654 | ||||||
Ilyang Pharmaceutical Co. Ltd.* | 756 | 29,021 | ||||||
Ipca Laboratories Ltd. | 1,664 | 18,742 | ||||||
Jubilant Life Sciences Ltd. | 4,445 | 58,583 | ||||||
JW Pharmaceutical Corp. | 531 | 20,682 | ||||||
Kalbe Farma Tbk. PT | 1,236,000 | 133,706 | ||||||
Kolon Life Science, Inc.* | 291 | 21,660 | ||||||
Komipharm International Co. Ltd.* | 2,616 | 95,524 | ||||||
Kwang Dong Pharmaceutical Co. Ltd. | 73 | 629 | ||||||
Laurus Labs Ltd.(b) | 602 | 4,612 | ||||||
Livzon Pharmaceutical Group, Inc., Class H | 4,160 | 30,107 | ||||||
Lupin Ltd. | 13,080 | 159,051 | ||||||
Luye Pharma Group Ltd.(a) | 104,000 | 111,046 | ||||||
Mega Lifesciences PCL, NVDR | 23,000 | 30,062 | ||||||
Natco Pharma Ltd. | 5,750 | 69,600 | ||||||
Pfizer Ltd. | 688 | 23,492 | ||||||
Pharmally International Holding Co. Ltd. | 3,000 | 39,545 | ||||||
Piramal Enterprises Ltd. | 4,680 | 182,291 | ||||||
Richter Gedeon Nyrt | 7,680 | 155,538 | ||||||
Samjin Pharmaceutical Co. Ltd. | 344 | 14,413 | ||||||
Sanofi India Ltd. | 258 | 18,798 | ||||||
ScinoPharm Taiwan Ltd. | 31,000 | 33,948 | ||||||
Searle Co. Ltd. (The) | 5,200 | 16,013 |
See Accompanying Notes to the Financial Statements.
160 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H | 20,000 | $ | 109,451 | |||||
Shilpa Medicare Ltd. | 774 | 5,450 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 248,000 | 60,355 | ||||||
Sino Biopharmaceutical Ltd. | 266,000 | 566,012 | ||||||
Solara Active Pharma Sciences Ltd.* (c) | 518 | 1,024 | ||||||
SSY Group Ltd. | 60,165 | 61,098 | ||||||
Strides Shasun Ltd. | 3,108 | 29,688 | ||||||
Sun Pharma Advanced Research Co. Ltd.* | 4,836 | 30,611 | ||||||
Sun Pharmaceutical Industries Ltd. | 64,080 | 507,340 | ||||||
Tong Ren Tang Technologies Co. Ltd., Class H | 17,000 | 27,466 | ||||||
Torrent Pharmaceuticals Ltd. | 2,009 | 42,700 | ||||||
TTY Biopharm Co. Ltd. | 10,686 | 36,298 | ||||||
Wockhardt Ltd.* | 175 | 2,186 | ||||||
YiChang HEC ChangJiang Pharmaceutical Co. Ltd., Class H(b) | 4,800 | 22,935 | ||||||
Yuhan Corp. | 500 | 107,205 | ||||||
Yungjin Pharmaceutical Co. Ltd.* | 5,316 | 42,705 | ||||||
YungShin Global Holding Corp.* | 29,000 | 39,991 | ||||||
6,613,749 | ||||||||
Professional Services – 0.0%(e) | ||||||||
Benefit Systems SA* | 98 | 29,788 | ||||||
Quess Corp. Ltd.* (b) | 1,560 | 27,167 | ||||||
Sporton International, Inc. | 2,363 | 13,138 | ||||||
70,093 | ||||||||
Real Estate Management & Development – 5.8% | ||||||||
Agile Group Holdings Ltd. | 182,000 | 362,690 | ||||||
Aldar Properties PJSC | 392,520 | 224,410 | ||||||
Aliansce Shopping Centers SA | 3,500 | 17,271 | ||||||
Amata Corp. PCL | 44,900 | 29,165 | ||||||
AP Thailand PCL, NVDR | 1,668,000 | 443,954 | ||||||
Attacq Ltd.* | 22,672 | 34,960 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Ayala Land, Inc. | 348,000 | $ | 274,368 | |||||
Bangkok Land PCL, NVDR | 1,123,200 | 66,552 | ||||||
Barwa Real Estate Co. | 8,732 | 84,778 | ||||||
Belle Corp. | 182,000 | 11,817 | ||||||
BR Malls Participacoes SA | 52,200 | 163,438 | ||||||
BR Properties SA | 4,577 | 11,680 | ||||||
Bumi Serpong Damai Tbk. PT | 499,200 | 60,640 | ||||||
C C Land Holdings Ltd.* | 151,000 | 34,632 | ||||||
Carnival Group International Holdings Ltd.* | 440,000 | 19,342 | ||||||
Cathay Real Estate Development Co. Ltd. | 33,100 | 19,299 | ||||||
Central China Real Estate Ltd. | 1,152,016 | 528,431 | ||||||
Central Pattana PCL, NVDR | 84,000 | 214,924 | ||||||
China Aoyuan Property Group Ltd. | 144,000 | 117,427 | ||||||
China Electronics Optics Valley Union Holding Co. Ltd.(b) | 5,464,000 | 452,534 | ||||||
China Evergrande Group* (a) | 202,000 | 649,890 | ||||||
China Jinmao Holdings Group Ltd. | 560,000 | 321,091 | ||||||
China Logistics Property Holdings Co. Ltd.* | 59,000 | 20,899 | ||||||
China Merchants Land Ltd. | 2,400,000 | 507,629 | ||||||
China Oceanwide Holdings Ltd.* | 202,000 | 11,067 | ||||||
China Overseas Grand Oceans Group Ltd. | 2,387,500 | 1,049,517 | ||||||
China Overseas Land & Investment Ltd. | 480,000 | 1,623,801 | ||||||
China Resources Land Ltd. | 341,777 | 1,295,558 | ||||||
China SCE Property Holdings Ltd. | 240,000 | 121,403 | ||||||
China South City Holdings Ltd. | 348,000 | 76,267 | ||||||
China Vanke Co. Ltd., Class H | 168,000 | 699,978 | ||||||
China Vast Industrial Urban Development Co. Ltd.(b) | 755,000 | 387,685 | ||||||
Chong Hong Construction Co. Ltd. | 24,000 | 70,005 | ||||||
CIFI Holdings Group Co. Ltd. | 417,149 | 332,199 | ||||||
Ciputra Development Tbk. PT | 597,049 | 47,206 | ||||||
Corp. Inmobiliaria Vesta SAB de CV | 26,700 | 38,382 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 161 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Country Garden Holdings Co. Ltd. | 400,000 | $ | 826,681 | |||||
DAMAC Properties Dubai Co. PJSC* | 220,200 | 166,057 | ||||||
DLF Ltd. | 19,408 | 64,878 | ||||||
Dongwon Development Co. Ltd. | 71,640 | 333,365 | ||||||
DoubleDragon Properties Corp.* | 42,720 | 25,756 | ||||||
Eastern & Oriental Bhd. | 42,574 | 15,191 | ||||||
Echo Investment SA | 255,038 | 391,610 | ||||||
Eco World Development Group Bhd.* | 141,200 | 41,387 | ||||||
Eco World International Bhd.* | 68,800 | 17,097 | ||||||
Emaar Malls PJSC* | 96,296 | 58,200 | ||||||
Emaar Properties PJSC | 207,698 | 327,395 | ||||||
Ezdan Holding Group QSC* | 97,204 | 299,274 | ||||||
Fantasia Holdings Group Co. Ltd. | 2,520,000 | 500,901 | ||||||
Farglory Land Development Co. Ltd. | 29,000 | 31,856 | ||||||
Filinvest Land, Inc. | 17,520,000 | 562,000 | ||||||
Fullshare Holdings Ltd.* (a) | 402,500 | 221,040 | ||||||
Future Land Development Holdings Ltd. | 218,000 | 182,494 | ||||||
Gemdale Properties & Investment Corp. Ltd. | 8,482,000 | 972,675 | ||||||
Globe Trade Centre SA | 11,472 | 30,286 | ||||||
Glorious Property Holdings Ltd.* | 86,000 | 7,013 | ||||||
Godrej Properties Ltd.* | 3,326 | 40,130 | ||||||
Greenland Hong Kong Holdings Ltd. | 1,440,000 | 671,538 | ||||||
Greentown China Holdings Ltd.(a) | 85,500 | 113,735 | ||||||
Grupo GICSA SA de CV* | 34,400 | 18,150 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H | 128,000 | 307,921 | ||||||
Guorui Properties Ltd.(b) | 1,320,000 | 437,295 | ||||||
Hanson International Tbk. PT* | 2,409,275 | 24,417 | ||||||
Highwealth Construction Corp.* | 120,000 | 185,760 | ||||||
Hongkong Land Holdings Ltd. | 72,000 | 522,000 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
Hopson Development Holdings Ltd. | 74,000 | $ | 79,391 | |||||
Huaku Development Co. Ltd. | 415,000 | 962,229 | ||||||
Huang Hsiang Construction Corp.* | 240,000 | 228,347 | ||||||
Hung Sheng Construction Ltd. | 790,000 | 933,213 | ||||||
Iguatemi Empresa de Shopping Centers SA | 4,800 | 49,133 | ||||||
Indiabulls Real Estate Ltd.* | 15,184 | 48,960 | ||||||
IOI Properties Group Bhd. | 110,625 | 43,985 | ||||||
Jiayuan International Group Ltd.* | 32,000 | 59,448 | ||||||
Joy City Property Ltd. | 208,000 | 32,863 | ||||||
Kaisa Group Holdings Ltd.* | 292,000 | 157,752 | ||||||
Kindom Construction Corp. | 631,000 | 413,750 | ||||||
Korea Real Estate Investment & Trust Co. Ltd. | 303,600 | 875,510 | ||||||
KWG Property Holding Ltd. | 171,918 | 235,701 | ||||||
Land & Houses PCL, NVDR | 155,700 | 54,268 | ||||||
Lippo Karawaci Tbk. PT* | 810,600 | 25,986 | ||||||
Logan Property Holdings Co. Ltd. | 162,000 | 240,680 | ||||||
Longfor Properties Co. Ltd. | 180,000 | 543,561 | ||||||
LSR Group PJSC | 73,034 | 969,524 | ||||||
LVGEM China Real Estate Investment Co. Ltd. | 84,000 | 34,571 | ||||||
Mah Sing Group Bhd. | 2,244,000 | 583,377 | ||||||
MAS Real Estate, Inc. | 13,905 | 26,153 | ||||||
MBK PCL, NVDR | 83,200 | 60,370 | ||||||
Medinet Nasr Housing* | 16,655 | 12,077 | ||||||
Megaworld Corp. | 585,000 | 50,870 | ||||||
Metropolitan Kentjana Tbk. PT | 10,400 | 17,193 | ||||||
Mingfa Group International Co. Ltd.* (c) | 36,000 | 8,669 | ||||||
Multiplan Empreendimentos Imobiliarios SA* | 7,000 | 133,509 | ||||||
NEPI Rockcastle plc | 34,080 | 375,614 | ||||||
New Europe Property Investments plc* ‡ (c) | 16,041 | — | ||||||
Oberoi Realty Ltd. | 8,116 | 66,823 | ||||||
Origin Property PCL | 52,600 | 30,333 | ||||||
Pakuwon Jati Tbk. PT | 1,268,300 | 53,786 | ||||||
Palm Hills Developments SAE* | 2,228,520 | 659,507 | ||||||
Parque Arauco SA | 39,960 | 124,129 |
See Accompanying Notes to the Financial Statements.
162 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
Phoenix Mills Ltd. (The) | 1,462 | $ | 13,704 | |||||
Platinum Group PCL (The), NVDR | 147,200 | 38,479 | ||||||
Poly Property Group Co. Ltd.* | 71,000 | 33,292 | ||||||
Powerlong Real Estate Holdings Ltd. | 138,000 | 71,741 | ||||||
Prestige Estates Projects Ltd. | 6,656 | 30,498 | ||||||
Prince Housing & Development Corp. | 2,160,000 | 861,474 | ||||||
Pruksa Holding PCL, NVDR | 62,400 | 44,091 | ||||||
Quality Houses PCL, NVDR | 7,824,000 | 758,601 | ||||||
Radium Life Tech Co. Ltd.* | 1,252,000 | 457,019 | ||||||
Red Star Macalline Group Corp. Ltd., Class H(b) | 1,824,000 | 2,468,178 | ||||||
Redco Group(b) | 52,000 | 32,665 | ||||||
Renhe Commercial Holdings Co. Ltd.* | 550,000 | 11,143 | ||||||
Road King Infrastructure Ltd.(a) | 427,000 | 816,106 | ||||||
Robinsons Land Corp. | 103,906 | 35,941 | ||||||
Ronshine China Holdings Ltd.* (b) | 870,500 | 1,304,377 | ||||||
Ruentex Development Co. Ltd.* | 56,000 | 67,477 | ||||||
Sansiri PCL, NVDR | 10,200,000 | 542,966 | ||||||
Sao Carlos Empreendimentos e Participacoes SA* | 2,800 | 29,704 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B | 31,200 | 44,616 | ||||||
Shenzhen Investment Ltd. | 384,793 | 156,403 | ||||||
Shimao Property Holdings Ltd. | 135,500 | 363,428 | ||||||
Shining Building Business Co. Ltd.* | 746,400 | 292,642 | ||||||
Shui On Land Ltd. | 480,000 | 130,271 | ||||||
Singha Estate PCL, NVDR* | 77,400 | 8,486 | ||||||
Sino-Ocean Group Holding Ltd. | 363,267 | 254,575 | ||||||
Sinyi Realty, Inc. | 20,105 | 29,390 | ||||||
SK D&D Co. Ltd. | 258 | 7,150 | ||||||
Skyfame Realty Holdings Ltd.* | 32,000 | 22,588 | ||||||
SM Prime Holdings, Inc. | 696,000 | 460,642 | ||||||
Sobha Ltd. | 1,548 | 12,759 | ||||||
SOHO China Ltd. | 104,000 | 53,668 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
SP Setia Bhd. Group | 52,000 | $ | 42,279 | |||||
Summarecon Agung Tbk. PT | 433,400 | 28,192 | ||||||
Sunac China Holdings Ltd.(a) | 128,000 | 552,888 | ||||||
Sunway Bhd. | 100,235 | 38,577 | ||||||
Supalai PCL, NVDR* | 48,600 | 35,726 | ||||||
Talaat Moustafa Group | 51,370 | 39,637 | ||||||
Tian An China Investment Co. Ltd. | 1,010,000 | 628,013 | ||||||
TICON Industrial Connection PCL, NVDR | 51,400 | 28,827 | ||||||
Times China Holdings Ltd. | 66,000 | 96,709 | ||||||
Tomson Group Ltd. | 1,540,000 | 771,153 | ||||||
Top Spring International Holdings Ltd. | 652,500 | 271,866 | ||||||
UEM Sunrise Bhd.* | 71,900 | 16,951 | ||||||
United Development Co. QSC | 314,818 | 1,262,385 | ||||||
UOA Development Bhd. | 16,500 | 10,219 | ||||||
Vista Land & Lifescapes, Inc. | 9,120,000 | 1,145,518 | ||||||
WHA Corp. PCL, NVDR | 394,090 | 49,449 | ||||||
Wuzhou International Holdings Ltd.* | 2,400,000 | 183,480 | ||||||
Yuexiu Property Co. Ltd. | 720,000 | 163,298 | ||||||
Yuzhou Properties Co. Ltd. | 181,000 | 132,840 | ||||||
Zall Group Ltd.* | 174,000 | 227,470 | ||||||
Zhong An Real Estate Ltd.* | 4,440,000 | 294,180 | ||||||
41,486,004 | ||||||||
Road & Rail – 0.1% | ||||||||
Blue Bird Tbk. PT | 30,900 | 6,286 | ||||||
BTS Group Holdings PCL, NVDR | 419,440 | 118,948 | ||||||
CAR, Inc.* | 42,000 | 40,243 | ||||||
CJ Logistics Corp.* | 416 | 60,956 | ||||||
Container Corp. of India Ltd. | 5,280 | 103,155 | ||||||
Cosan Logistica SA* | 4,018 | 12,557 | ||||||
Evergreen International Storage & Transport Corp. | 65,000 | 29,659 | ||||||
Guangshen Railway Co. Ltd., Class H | 30,000 | 17,507 | ||||||
Localiza Rent a Car SA* | 28,860 | 230,784 | ||||||
PKP Cargo SA* | 1,103 | 12,939 | ||||||
Rumo SA* | 60,000 | 255,469 | ||||||
888,503 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 163 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – 3.8% | ||||||||
A-DATA Technology Co. Ltd. | 11,000 | $ | 26,732 | |||||
Advanced Process Systems Corp.* | 430 | 9,300 | ||||||
Advanced Wireless Semiconductor Co. | 14,000 | 29,432 | ||||||
Ardentec Corp. | 748,720 | 850,286 | ||||||
ASE Industrial Holding Co. Ltd. | 207,420 | 562,954 | ||||||
ASMedia Technology, Inc. | 2,104 | 24,534 | ||||||
ASPEED Technology, Inc. | 1,000 | 28,729 | ||||||
Chipbond Technology Corp. | 35,000 | 70,150 | ||||||
ChipMOS TECHNOLOGIES, Inc. | 21,000 | 14,657 | ||||||
Darwin Precisions Corp. | 11,000 | 8,644 | ||||||
DB HiTek Co. Ltd. | 65,520 | 825,096 | ||||||
Elan Microelectronics Corp.* | 18,000 | 26,282 | ||||||
Elite Advanced Laser Corp. | 3,600 | 12,715 | ||||||
Elite Semiconductor Memory Technology, Inc.* | 12,000 | 15,777 | ||||||
eMemory Technology, Inc.* | 3,000 | 37,213 | ||||||
Eo Technics Co. Ltd. | 390 | 27,459 | ||||||
Epistar Corp. | 58,000 | 79,884 | ||||||
Eugene Technology Co. Ltd. | 344 | 5,846 | ||||||
Everlight Electronics Co. Ltd. | 49,000 | 68,979 | ||||||
Faraday Technology Corp. | 16,000 | 36,233 | ||||||
FocalTech Systems Co. Ltd.* | 507,000 | 444,684 | ||||||
Foxsemicon Integrated Technology, Inc. | 1,050 | 6,903 | ||||||
GCL-Poly Energy Holdings Ltd.* (a) | 1,560,000 | 194,795 | ||||||
Gigasolar Materials Corp.* | 1,380 | 7,113 | ||||||
Gintech Energy Corp.* | 973,337 | 524,723 | ||||||
Global Unichip Corp. | 5,000 | 47,657 | ||||||
Globalwafers Co. Ltd. | 13,000 | 212,225 | ||||||
Greatek Electronics, Inc. | 24,000 | 43,642 | ||||||
Hanmi Semiconductor Co. Ltd. | 1,248 | 12,269 | ||||||
Holtek Semiconductor, Inc.* | 7,000 | 16,727 | ||||||
Hua Hong Semiconductor Ltd.(b) | 20,000 | 45,615 | ||||||
Innox Advanced Materials Co. Ltd.* | 520 | 32,912 | ||||||
Jusung Engineering Co. Ltd. | 774 | 7,428 | ||||||
King Yuan Electronics Co. Ltd.* | 150,000 | 149,055 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Kinsus Interconnect Technology Corp. | 32,000 | $ | 53,105 | |||||
Koh Young Technology, Inc. | 416 | 39,651 | ||||||
LandMark Optoelectronics Corp. | 2,000 | 18,792 | ||||||
LEENO Industrial, Inc. | 416 | 22,318 | ||||||
Lextar Electronics Corp.* | 12,000 | 7,280 | ||||||
Macronix International* | 89,000 | 143,037 | ||||||
MediaTek, Inc.* | 96,000 | 1,103,206 | ||||||
Motech Industries, Inc.* | 864,115 | 604,572 | ||||||
Nanya Technology Corp. | 37,000 | 116,303 | ||||||
Neo Solar Power Corp.* | 42,000 | 17,532 | ||||||
Novatek Microelectronics Corp. | 31,000 | 130,972 | ||||||
On-Bright Electronics, Inc. | 2,000 | 16,325 | ||||||
OptoTech Corp. | 23,000 | 17,180 | ||||||
Pan Jit International, Inc. | 557,000 | 950,721 | ||||||
Panda Green Energy Group Ltd.* | 172,000 | 18,409 | ||||||
Parade Technologies Ltd. | 3,400 | 52,919 | ||||||
Phison Electronics Corp. | 10,000 | 91,089 | ||||||
Pixart Imaging, Inc. | 5,000 | 19,266 | ||||||
Powertech Technology, Inc. | 43,000 | 124,117 | ||||||
PSK, Inc. | 25,320 | 546,441 | ||||||
Radiant Opto-Electronics Corp. | 56,330 | 117,281 | ||||||
Realtek Semiconductor Corp.* | 26,070 | 99,569 | ||||||
SDI Corp. | 12,000 | 28,594 | ||||||
Semiconductor Manufacturing International Corp.* (a) | 194,000 | 250,155 | ||||||
Seoul Semiconductor Co. Ltd. | 1,370 | 24,372 | ||||||
Sigurd Microelectronics Corp. | 560,000 | 653,947 | ||||||
Silergy Corp. | 4,000 | 84,092 | ||||||
Silicon Works Co. Ltd. | 416 | 14,626 | ||||||
Sino-American Silicon Products, Inc.* | 37,000 | 161,324 | ||||||
Sitronix Technology Corp. | 195,000 | 561,540 | ||||||
SK Hynix, Inc. | 73,560 | 5,819,784 | ||||||
Taiwan Semiconductor Co. Ltd. | 9,000 | 20,807 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,103,000 | 8,462,677 | ||||||
Taiwan Surface Mounting Technology Corp. | 483,000 | 416,288 | ||||||
TES Co. Ltd. | 430 | 12,118 | ||||||
Tokai Carbon Korea Co. Ltd. | 86 | 5,153 |
See Accompanying Notes to the Financial Statements.
164 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Topco Scientific Co. Ltd. | 279,085 | $ | 757,458 | |||||
Toptec Co. Ltd.* | 526 | 13,125 | ||||||
Unisem M Bhd. | 17,200 | 7,891 | ||||||
United Microelectronics Corp. | 720,000 | 389,367 | ||||||
Vanguard International Semiconductor Corp. | 47,000 | 95,949 | ||||||
Visual Photonics Epitaxy Co. Ltd. | 6,000 | 19,367 | ||||||
Wafer Works Corp.* | 16,000 | 25,309 | ||||||
Win Semiconductors Corp. | 20,961 | 159,050 | ||||||
Winbond Electronics Corp. | 175,050 | 108,273 | ||||||
Wonik Holdings Co. Ltd.* | 1,768 | 11,141 | ||||||
WONIK IPS Co. Ltd. | 946 | 30,292 | ||||||
XinTec, Inc.* | 6,000 | 11,742 | ||||||
Xinyi Solar Holdings Ltd. | 560,000 | 256,873 | ||||||
27,218,049 | ||||||||
Software – 0.5% | ||||||||
Asseco Poland SA | 136,080 | 1,708,889 | ||||||
CD Projekt SA | 4,080 | 145,325 | ||||||
Com2uSCorp | 520 | 77,899 | ||||||
Cyient Ltd. | 764 | 8,710 | ||||||
DoubleUGames Co. Ltd. | 312 | 18,258 | ||||||
Douzone Bizon Co. Ltd. | 669 | 30,943 | ||||||
Gamania Digital Entertainment Co. Ltd.* | 6,000 | 13,303 | ||||||
G-treeBNT Co. Ltd.* | 525 | 23,201 | ||||||
International Games System Co. Ltd. | 3,000 | 16,224 | ||||||
Kingdee International Software Group Co. Ltd.* (a) | 66,000 | 64,753 | ||||||
Kingsoft Corp. Ltd.(a) | 54,000 | 162,380 | ||||||
Linx SA | 6,200 | 39,749 | ||||||
NCSoft Corp. | 1,025 | 345,490 | ||||||
NetDragon Websoft Holdings Ltd. | 12,000 | 29,173 | ||||||
Netmarble Corp.(b) | 2,400 | 331,445 | ||||||
NHN Entertainment Corp.* | 624 | 35,989 | ||||||
Oracle Financial Services Software Ltd.* | 883 | 57,025 | ||||||
Pearl Abyss Corp.* | 312 | 76,361 | ||||||
Soft-World International Corp. | 5,000 | 14,804 |
Investments | Shares | Value | ||||||
Software – (continued) | ||||||||
Tata Elxsi Ltd. | 516 | $ | 9,570 | |||||
TOTVS SA | 7,600 | 69,731 | ||||||
Webzen, Inc.* | 474 | 12,604 | ||||||
WeMade Entertainment Co. Ltd. | 723 | 40,616 | ||||||
XPEC Entertainment, Inc.* ‡ (c) | 14,800 | — | ||||||
3,332,442 | ||||||||
Specialty Retail – 1.2% | ||||||||
Ace Hardware Indonesia Tbk. PT | 384,800 | 35,956 | ||||||
Beauty Community PCL, NVDR | 114,400 | 84,459 | ||||||
Bermaz Auto Bhd. | 20,800 | 11,769 | ||||||
Cashbuild Ltd. | 1,168 | 40,699 | ||||||
China Harmony New Energy Auto Holding Ltd.(a) | 1,343,000 | 766,622 | ||||||
China Yongda Automobiles Services Holdings Ltd. | 85,500 | 98,483 | ||||||
China ZhengTong Auto Services Holdings Ltd.(a) | 142,000 | 116,339 | ||||||
Cia Hering | 4,800 | 26,287 | ||||||
Detsky Mir PJSC(b) | 646,200 | 958,388 | ||||||
FF Group* | 3,536 | 67,073 | ||||||
Foschini Group Ltd. (The) | 13,200 | 227,336 | ||||||
GOME Retail Holdings Ltd.(a) | 623,447 | 67,522 | ||||||
Grand Baoxin Auto Group Ltd.* | 1,651,000 | 698,413 | ||||||
Home Product Center PCL, NVDR | 252,000 | 119,772 | ||||||
Hotai Motor Co. Ltd. | 21,000 | 206,902 | ||||||
Hotel Shilla Co. Ltd. | 1,712 | 185,939 | ||||||
Italtile Ltd. | 914,765 | 1,050,784 | ||||||
JUMBO SA | 6,120 | 112,096 | ||||||
LOTTE Himart Co. Ltd. | 936 | 65,289 | ||||||
M.Video PJSC* | 2,600 | 16,783 | ||||||
Mr Price Group Ltd. | 15,480 | 339,751 | ||||||
Padini Holdings Bhd. | 17,200 | 18,631 | ||||||
PC Jeweller Ltd. | 6,552 | 14,186 | ||||||
Pou Sheng International Holdings Ltd.(a) | 3,673,000 | 613,083 | ||||||
PTG Energy PCL, NVDR | 26,300 | 15,583 | ||||||
Seobu T&D* | 475 | 4,692 | ||||||
Siam Global House PCL, NVDR | 58,364 | 30,144 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 165 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – (continued) | ||||||||
Super Group Ltd.* | 674,520 | $ | 2,000,799 | |||||
Truworths International Ltd. | 26,160 | 214,791 | ||||||
Via Varejo SA | 5,700 | 48,621 | ||||||
Zhongsheng Group Holdings Ltd.(a) | 75,500 | 217,411 | ||||||
8,474,603 | ||||||||
Technology Hardware, Storage & Peripherals – 6.3% | ||||||||
Acer, Inc.* | 177,858 | 137,061 | ||||||
Adlink Technology, Inc.* | 6,223 | 12,788 | ||||||
Advantech Co. Ltd. | 20,220 | 139,759 | ||||||
Asia Vital Components Co. Ltd.* | 506,000 | 462,620 | ||||||
Asustek Computer, Inc. | 85,000 | 798,675 | ||||||
Casetek Holdings Ltd. | 17,875 | 44,104 | ||||||
Catcher Technology Co. Ltd. | 43,000 | 481,064 | ||||||
Chicony Electronics Co. Ltd. | 67,654 | 167,383 | ||||||
Clevo Co.* | 66,322 | 65,680 | ||||||
CMC Magnetics Corp.* | 3,120,301 | 638,055 | ||||||
Compal Electronics, Inc. | 525,000 | 344,245 | ||||||
Coolpad Group Ltd.* (c) | 326,000 | 29,907 | ||||||
Elitegroup Computer Systems Co. Ltd.* | 600,000 | 342,724 | ||||||
Ennoconn Corp. | 2,000 | 32,582 | ||||||
Foxconn Technology Co. Ltd. | 52,000 | 129,884 | ||||||
Getac Technology Corp. | 44,000 | 63,651 | ||||||
Gigabyte Technology Co. Ltd. | 56,000 | 123,786 | ||||||
HTC Corp.* | 48,000 | 98,153 | ||||||
Inventec Corp. | 369,000 | 281,241 | ||||||
Legend Holdings Corp., Class H(a) (b) | 648,000 | 2,175,619 | ||||||
Lenovo Group Ltd.(a) | 376,000 | 179,658 | ||||||
Lite-On Technology Corp.* | 266,000 | 352,881 | ||||||
Meitu, Inc.* (b) | 82,500 | 87,879 | ||||||
Micro-Star International Co. Ltd. | 90,000 | 284,116 | ||||||
Mitac Holdings Corp. | 71,676 | 77,886 | ||||||
Pegatron Corp. | 270,000 | 634,242 | ||||||
Primax Electronics Ltd. | 23,000 | 47,032 | ||||||
Qisda Corp. | 181,000 | 125,106 | ||||||
Quanta Computer, Inc. | 360,000 | 658,273 | ||||||
Quanta Storage, Inc. | 360,000 | 327,920 | ||||||
Ritek Corp.* | 104,000 | 20,739 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Samsung Electronics Co. Ltd.(c) | 12,480 | $ | 30,964,843 | |||||
Samsung Electronics Co. Ltd. (Preference)(c) | 1,878 | 3,736,482 | ||||||
Sindoh Co. Ltd. | 9,720 | 550,592 | ||||||
Transcend Information, Inc.* | 7,000 | 19,803 | ||||||
Wistron Corp. | 360,000 | 288,375 | ||||||
44,924,808 | ||||||||
Textiles, Apparel & Luxury Goods – 2.1% | ||||||||
361 Degrees International Ltd. | 1,080,000 | 344,026 | ||||||
Aditya Birla Fashion and Retail Ltd.* | 6,536 | 14,372 | ||||||
Aksa Akrilik Kimya Sanayii A/S | 135,960 | 444,811 | ||||||
Alpargatas SA (Preference) | 5,900 | 26,407 | ||||||
ANTA Sports Products Ltd. | 65,000 | 373,937 | ||||||
Arezzo Industria e Comercio SA | 1,600 | 24,305 | ||||||
Arvind Ltd. | 7,361 | 46,720 | ||||||
Bata India Ltd. | 2,024 | 24,340 | ||||||
Bosideng International Holdings Ltd. | 6,720,000 | 693,556 | ||||||
CCC SA | 1,800 | 133,057 | ||||||
China Dongxiang Group Co. Ltd. | 6,120,000 | 1,122,900 | ||||||
China Lilang Ltd. | 22,000 | 27,723 | ||||||
Citychamp Watch & Jewellery Group Ltd. | 126,000 | 26,972 | ||||||
De Licacy Industrial Co. Ltd. | 13,339 | 11,406 | ||||||
Eclat Textile Co. Ltd. | 12,698 | 154,291 | ||||||
F&F Co. Ltd. | 11,280 | 461,529 | ||||||
Feng TAY Enterprise Co. Ltd. | 21,122 | 96,377 | ||||||
Fila Korea Ltd. | 17,760 | 2,170,011 | ||||||
Formosa Taffeta Co. Ltd. | 33,000 | 37,477 | ||||||
Fuguiniao Co. Ltd., Class H* (c) | 334,800 | 165,518 | ||||||
Fulgent Sun International Holding Co. Ltd. | 2,000 | 4,299 | ||||||
Grendene SA | 6,274 | 49,164 | ||||||
Guararapes Confeccoes SA | 300 | 11,784 | ||||||
Handsome Co. Ltd. | 24,720 | 768,413 | ||||||
Hansae Co. Ltd. | 1,034 | 21,879 | ||||||
HengTen Networks Group Ltd.* (a) | 1,032,000 | 40,106 | ||||||
HS Industries Co. Ltd. | 67,560 | 540,834 | ||||||
Hwaseung Enterprise Co. Ltd. | 16,080 | 326,704 |
See Accompanying Notes to the Financial Statements.
166 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Lao Feng Xiang Co. Ltd., Class B | 380,550 | $ | 1,374,166 | |||||
LF Corp. | 35,160 | 928,339 | ||||||
Li Ning Co. Ltd.* | 95,500 | 108,176 | ||||||
LPP SA | 78 | 204,141 | ||||||
Makalot Industrial Co. Ltd.* | 7,650 | 36,975 | ||||||
Nan Liu Enterprise Co. Ltd. | 2,000 | 10,714 | ||||||
Nishat Mills Ltd. | 312,000 | 394,205 | ||||||
Page Industries Ltd. | 360 | 130,532 | ||||||
Pou Chen Corp. | 309,000 | 387,993 | ||||||
Quang Viet Enterprise Co. Ltd. | 4,000 | 14,872 | ||||||
Rajesh Exports Ltd. | 8,880 | 90,736 | ||||||
Raymond Ltd. | 2,176 | 36,257 | ||||||
Relaxo Footwears Ltd.* | 1,352 | 14,149 | ||||||
Ruentex Industries Ltd.* | 34,000 | 66,307 | ||||||
Shenzhou International Group Holdings Ltd. | 38,000 | 417,367 | ||||||
SRF Ltd. | 774 | 27,746 | ||||||
Tainan Spinning Co. Ltd. | 48,555 | 21,581 | ||||||
Taiwan Paiho Ltd. | 11,000 | 29,595 | ||||||
Texhong Textile Group Ltd. | 447,500 | 626,070 | ||||||
Titan Co. Ltd. | 18,840 | 277,152 | ||||||
Vardhman Textiles Ltd. | 25,200 | 463,183 | ||||||
Welspun India Ltd. | 11,024 | 9,456 | ||||||
Xtep International Holdings Ltd. | 1,680,000 | 980,397 | ||||||
Youngone Corp. | 1,248 | 34,938 | ||||||
Youngone Holdings Co. Ltd. | 9,480 | 474,865 | ||||||
15,322,830 | ||||||||
Thrifts & Mortgage Finance – 0.5% | ||||||||
Dewan Housing Finance Corp. Ltd. | 10,440 | 100,270 | ||||||
GRUH Finance Ltd. | 6,370 | 64,616 | ||||||
Housing Development Finance Corp. Ltd. | 98,750 | 2,786,499 | ||||||
Indiabulls Housing Finance Ltd. | 19,320 | 378,353 | ||||||
LIC Housing Finance Ltd. | 15,240 | 124,861 | ||||||
Malaysia Building Society Bhd. | 89,915 | 26,355 | ||||||
PNB Housing Finance Ltd.(b) | 860 | 18,049 | ||||||
3,499,003 |
Investments | Shares | Value | ||||||
Tobacco – 0.3% | ||||||||
British American Tobacco Malaysia Bhd. | 5,900 | $ | 36,842 | |||||
Eastern Tobacco | 6,552 | 76,248 | ||||||
Godfrey Phillips India Ltd. | 23,735 | 313,296 | ||||||
Gudang Garam Tbk. PT | 25,200 | 125,570 | ||||||
ITC Ltd. | 171,120 | 721,632 | ||||||
KT&G Corp. | 7,560 | 692,260 | ||||||
1,965,848 | ||||||||
Trading Companies & Distributors – 0.4% | ||||||||
Adani Enterprises Ltd. | 15,288 | 32,092 | ||||||
AKR Corporindo Tbk. PT | 71,700 | 25,253 | ||||||
Barloworld Ltd. | 26,880 | 364,192 | ||||||
BOC Aviation Ltd.(a) (b) | 26,100 | 152,977 | ||||||
China Aircraft Leasing Group Holdings Ltd.(a) (b) | 492,000 | 526,589 | ||||||
CITIC Resources Holdings Ltd. | 126,000 | 14,289 | ||||||
Ferreycorp SAA | 1,842,360 | 1,492,617 | ||||||
International Business Settlement Holdings Ltd.* | 330,000 | 14,086 | ||||||
LG International Corp. | 5,280 | 130,758 | ||||||
Posco Daewoo Corp. | 6,600 | 139,347 | ||||||
SK Networks Co. Ltd. | 5,892 | 31,003 | ||||||
2,923,203 | ||||||||
Transportation Infrastructure – 1.0% | ||||||||
Adani Ports & Special Economic Zone Ltd. | 47,880 | 292,201 | ||||||
Airports of Thailand PCL | 54,000 | 121,483 | ||||||
Airports of Thailand PCL, NVDR | 198,000 | 447,006 | ||||||
Bangkok Aviation Fuel Services PCL, NVDR | 18,800 | 23,083 | ||||||
Bangkok Expressway & Metro PCL, NVDR | 456,000 | 111,977 | ||||||
Beijing Capital International Airport Co. Ltd., Class H | 74,000 | 101,455 | ||||||
CCR SA | 72,000 | 246,902 | ||||||
China Merchants Port Holdings Co. Ltd. | 65,393 | 147,146 | ||||||
COSCO SHIPPING International Hong Kong Co. Ltd. | 108,000 | 43,072 | ||||||
COSCO SHIPPING Ports Ltd. | 87,376 | 77,153 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 167 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – (continued) | ||||||||
Dalian Port PDA Co. Ltd., Class H | 3,360,000 | $ | 547,995 | |||||
DP World Ltd. | 10,440 | 232,290 | ||||||
EcoRodovias Infraestrutura e Logistica SA | 14,880 | 42,451 | ||||||
Grupo Aeroportuario del Centro Norte SAB de CV | 17,200 | 90,697 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B | 20,600 | 213,369 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 12,600 | 225,627 | ||||||
Gujarat Pipavav Port Ltd. | 20,884 | 46,405 | ||||||
Hopewell Highway Infrastructure Ltd. | 52,000 | 31,671 | ||||||
International Container Terminal Services, Inc. | 42,650 | 69,724 | ||||||
Jasa Marga Persero Tbk. PT | 88,423 | 27,774 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 62,000 | 85,318 | ||||||
Lingkaran Trans Kota Holdings Bhd. | 17,200 | 23,892 | ||||||
Malaysia Airports Holdings Bhd. | 31,200 | 71,648 | ||||||
Novorossiysk Commercial Sea Port PJSC | 289,596 | 32,834 | ||||||
OHL Mexico SAB de CV | 26,500 | 39,463 | ||||||
Promotora y Operadora de Infraestructura SAB de CV* | 12,000 | 122,440 | ||||||
Promotora y Operadora de Infraestructura SAB de CV, Class L* | 2,300 | 15,989 | ||||||
Shenzhen Expressway Co. Ltd., Class H | 1,266,000 | 1,290,479 | ||||||
Shenzhen International Holdings Ltd. | 111,751 | 245,765 | ||||||
Sociedad Matriz SAAM SA | 160,160 | 16,717 | ||||||
Taiwan High Speed Rail Corp. | 134,000 | 103,263 | ||||||
TAV Havalimanlari Holding A/S | 21,360 | 114,438 | ||||||
Tianjin Port Development Holdings Ltd.* | 2,880,000 | 399,987 | ||||||
Westports Holdings Bhd. | 61,600 | 52,439 |
Investments | Shares | Value | ||||||
Transportation Infrastructure – (continued) | ||||||||
Yuexiu Transport Infrastructure Ltd. | 1,200,000 | $ | 908,228 | |||||
Zhejiang Expressway Co. Ltd., Class H | 158,000 | 162,867 | ||||||
6,825,248 | ||||||||
Water Utilities – 0.6% | ||||||||
Aguas Andinas SA, Class A | 165,240 | 110,111 | ||||||
Beijing Enterprises Water Group Ltd.* (a) | 288,000 | 168,802 | ||||||
China Everbright Water Ltd. | 42,900 | 13,608 | ||||||
China Water Affairs Group Ltd. | 1,580,000 | 1,505,864 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 42,100 | 424,416 | ||||||
Cia de Saneamento de Minas Gerais-COPASA | 112,200 | 1,621,378 | ||||||
Cia de Saneamento do Parana (Preference) | 36,000 | 110,136 | ||||||
CT Environmental Group Ltd. | 192,000 | 29,357 | ||||||
Guangdong Investment Ltd. | 168,000 | 261,582 | ||||||
Inversiones Aguas Metropolitanas SA | 11,208 | 21,309 | ||||||
Manila Water Co., Inc. | 33,800 | 18,157 | ||||||
SIIC Environment Holdings Ltd. | 89,300 | 29,338 | ||||||
TTW PCL, NVDR | 68,000 | 26,717 | ||||||
4,340,775 | ||||||||
Wireless Telecommunication Services – 1.6% | ||||||||
Advanced Info Service PCL, NVDR | 64,300 | 423,777 | ||||||
Almendral SA | 1,638,960 | 133,963 | ||||||
America Movil SAB de CV, Series L | 1,380,000 | 1,271,835 | ||||||
Axiata Group Bhd. | 186,782 | 252,312 | ||||||
Bharti Airtel Ltd. | 66,840 | 410,164 | ||||||
China Mobile Ltd. | 330,117 | 3,163,100 | ||||||
DiGi.Com Bhd. | 144,000 | 169,930 | ||||||
Empresa Nacional de Telecomunicaciones SA | 5,699 | 67,465 | ||||||
Far EasTone Telecommunications Co. Ltd.* | 82,000 | 217,288 | ||||||
Global Telecom Holding SAE* | 105,267 | 30,616 | ||||||
Globe Telecom, Inc. | 1,560 | 46,424 |
See Accompanying Notes to the Financial Statements.
168 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Wireless Telecommunication Services – (continued) | ||||||||
Ground International Development Ltd.* | 150,000 | $ | 32,109 | |||||
Idea Cellular Ltd.* | 219,445 | 227,369 | ||||||
Indosat Tbk. PT | 68,800 | 18,693 | ||||||
Intouch Holdings PCL, NVDR | 96,000 | 174,905 | �� | |||||
Maxis Bhd. | 84,000 | 124,817 | ||||||
MegaFon PJSC | 15,240 | 114,465 | ||||||
Mobile TeleSystems PJSC | 129,360 | 608,843 | ||||||
MTN Group Ltd. | 111,480 | 1,118,394 | ||||||
PLAY Communications SA(b) | 16,320 | 138,059 | ||||||
PLDT, Inc. | 5,400 | 152,662 | ||||||
Sarana Menara Nusantara Tbk. PT | 408,000 | 92,084 | ||||||
Sistema PJSFC | 389,961 | 69,539 | ||||||
SK Telecom Co. Ltd. | 5,040 | 1,078,264 | ||||||
Taiwan Mobile Co. Ltd.* | 95,000 | 351,596 | ||||||
TIM Participacoes SA | 48,000 | 219,514 | ||||||
Total Access Communication PCL, NVDR | 41,600 | 67,224 | ||||||
Tower Bersama Infrastructure Tbk. PT | 81,300 | 32,433 | ||||||
Turkcell Iletisim Hizmetleri A/S | 55,680 | 191,204 | ||||||
Vodacom Group Ltd. | 27,840 | 347,829 | ||||||
Vodafone Qatar QSC* | 20,384 | 52,626 | ||||||
XL Axiata Tbk. PT* | 149,675 | 22,808 | ||||||
11,422,311 | ||||||||
Total Common Stocks (Cost $598,494,549) | 712,771,410 | |||||||
Principal Amount | ||||||||
CORPORATE BONDS – 0.0%(e) | ||||||||
Independent Power and Renewable Electricity Producers – 0.0%(e) | ||||||||
NTPC Ltd. | ||||||||
Series 54, | INR49,126 | 10,144 |
Investments | Number of Rights | Value | ||||||
RIGHTS – 0.0%(e) | ||||||||
Semiconductors & Semiconductor Equipment – 0.0%(e) | ||||||||
Wafer Works Corp., | 798 | $ | 210 | |||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(f) – 0.2% | ||||||||
REPURCHASE AGREEMENTS – 0.2% | ||||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $250,013, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $272,815 | $ | 250,000 | 250,000 | |||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $562,477, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $570,201 | 562,450 | 562,450 | ||||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $250,014, collateralized by various Common Stocks; total market value $279,622 | 250,000 | 250,000 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 169 |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(f) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $200,010, collateralized by various Common Stocks; total market value $220,921 | $ | 200,000 | $ | 200,000 | ||||
1,262,450 | ||||||||
Total Securities Lending Reinvestments (Cost $1,262,450) | 1,262,450 | |||||||
Total Investments – 99.4% (Cost $599,756,999) | 714,044,214 | |||||||
Other Assets Less Liabilities – 0.6% |
| 4,485,796 | ||||||
NET ASSETS – 100.0% | $ | 718,530,010 |
* | Non-income producing security. |
^ | Security subject to restrictions on resale. |
‡ | Value determined using significant unobservable inputs. |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $21,335,908, collateralized in the form of cash with a value of $1,262,450 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $4,673,576 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from May 24, 2018 – November 15, 2047 and $17,010,500 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from May 8, 2018 – July 22, 2068; a total value of $22,946,526. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Security fair valued as of April 30, 2018 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2018 amounted to $35,679,077, which represents approximately 4.97% of net assets of the Fund. |
(d) | Amount less than one dollar. |
(e) | Represents less than 0.05% of net assets. |
(f) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $1,262,450. |
Percentages shown are based on Net Assets.
Abbreviations
ADR – American Depositary Receipt
GDR – Global Depositary Receipt
INR – Indian Rupee
NVDR – Non-Voting Depositary Receipt
OJSC – Open Joint Stock Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
TWD – Taiwan Dollar
As of April 30, 2018, 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 | $ | 132,648,259 | ||
Aggregate gross unrealized depreciation | (24,735,557 | ) | ||
Net unrealized appreciation | $ | 107,912,702 | ||
Federal income tax cost | $ | 606,011,792 |
Futures Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Depreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI Emerging Markets E-Mini Index | 104 | 06/15/2018 | USD | $ | 5,991,440 | $ | (158,236 | ) |
* | 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.
170 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)
Forward Foreign Currency Contracts
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2018:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 700,620 | Goldman Sachs & Co. | BRL* | 2,299,365 | 06/20/2018 | $ | 44,532 | |||||||||||||||
USD | 97,981 | Goldman Sachs & Co. | INR* | 6,426,458 | 06/20/2018 | 2,205 | ||||||||||||||||
USD | 1,212,273 | Morgan Stanley | KRW* | 1,285,763,600 | 06/20/2018 | 6,705 | ||||||||||||||||
USD | 33,644 | Goldman Sachs & Co. | RUB* | 1,941,866 | 06/20/2018 | 2,991 | ||||||||||||||||
Total unrealized appreciation |
| $ | 56,433 | |||||||||||||||||||
BRL* | 1,342,760 | Goldman Sachs & Co. | USD | 400,000 | 06/20/2018 | $ | (16,864 | ) | ||||||||||||||
HKD | 889,226 | Citibank NA | USD | 113,760 | 06/20/2018 | (323 | ) | |||||||||||||||
TWD* | 1,125,297 | Goldman Sachs & Co. | USD | 38,896 | 06/20/2018 | (730 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (17,917 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 38,516 |
* | 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
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Brazil | 6.0 | % | ||
Chile | 0.9 | |||
China | 27.3 | |||
Colombia | 0.8 | |||
Czech Republic | 0.1 | |||
Egypt | 0.4 | |||
Greece | 0.6 | |||
Hungary | 0.2 | |||
India | 6.7 | |||
Indonesia | 1.9 | |||
Malaysia | 1.7 | |||
Mexico | 2.0 | |||
Pakistan | 0.7 | |||
Peru | 0.4 | |||
Philippines | 1.5 | |||
Poland | 1.2 | |||
Qatar | 0.8 | |||
Russia | 4.0 | |||
South Africa | 6.5 | |||
South Korea | 19.6 | |||
Taiwan | 12.4 | |||
Thailand | 2.0 | |||
Turkey | 0.9 | |||
United Arab Emirates | 0.6 | |||
Other1 | 0.8 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 171 |
Table of Contents
Schedule of Investments
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS – 98.4% | ||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund(a) | 133,809 | $ | 9,196,692 | |||||
Total Investments – 98.4% (Cost $8,141,102) | 9,196,692 | |||||||
Other Assets Less Liabilities – 1.6% |
| 146,061 | ||||||
NET ASSETS – 100.0% | $ | 9,342,753 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Fund. |
Percentages shown are based on Net Assets
As of April 30, 2018, 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 | $ | 1,198,526 | ||
Aggregate gross unrealized depreciation | — | |||
Net unrealized appreciation | $ | 1,198,526 | ||
Federal income tax cost | $ | 8,143,127 |
The FlexShares Currency Hedged Morningstar DM ex-US Factor TiltIndex Fund currently seeks its investment objective by investing a substantial portion of its assets in an affiliated FlexShares Fund. The Schedule of Investments of the affiliated FlexShares Fund is located elsewhere in this Report.
Investment in a company which was affiliated for the period ending April 30, 2018, was as follows:
Security | Value October 31, 2017 | Purchases at Cost | Sales Proceeds | Shares April 30, 2018 | Value April 30, 2018 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain | ||||||||||||||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | $ | 18,799,687 | $ | 1,801,322 | $ | 11,793,109 | 133,809 | $ | 9,196,692 | $ | (1,455,028 | ) | $ | 231,688 | $ | 1,843,820 |
Forward Foreign Currency Contracts | ||||||||||||||||||||||
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2018: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 539,519 | Toronto-Dominion Bank (The) | AUD | 703,000 | 05/22/2018 | $ | 8,843 | |||||||||||||||
USD | 751,054 | Toronto-Dominion Bank (The) | CAD | 955,000 | 05/22/2018 | 5,782 | ||||||||||||||||
USD | 458,857 | Toronto-Dominion Bank (The) | CHF | 446,000 | 05/22/2018 | 7,506 | ||||||||||||||||
USD | 103,742 | Toronto-Dominion Bank (The) | DKK | 628,000 | 05/22/2018 | 1,742 | ||||||||||||||||
USD | 2,430,964 | Toronto-Dominion Bank (The) | EUR | 1,976,000 | 05/22/2018 | 39,976 | ||||||||||||||||
USD | 1,496,574 | Toronto-Dominion Bank (The) | GBP | 1,066,000 | 05/22/2018 | 26,925 | ||||||||||||||||
USD | 88,200 | Toronto-Dominion Bank (The) | ILS | 311,000 | 05/22/2018 | 1,654 | ||||||||||||||||
USD | 2,474,047 | Toronto-Dominion Bank (The) | JPY | 266,011,000 | 05/22/2018 | 39,749 | ||||||||||||||||
USD | 105,759 | Toronto-Dominion Bank (The) | NOK | 827,000 | 05/22/2018 | 2,455 | ||||||||||||||||
USD | 37,545 | Toronto-Dominion Bank (The) | NZD | 52,000 | 05/22/2018 | 909 | ||||||||||||||||
USD | 250,416 | Toronto-Dominion Bank (The) | SEK | 2,111,000 | 05/22/2018 | 8,587 |
See Accompanying Notes to the Financial Statements.
172 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund (cont.)
Forward Foreign Currency Contracts (cont.) | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 120,106 | Toronto-Dominion Bank (The) | SGD | 158,000 | 05/22/2018 | $ | 726 | |||||||||||||||
USD | 269,754 | Toronto-Dominion Bank (The) | HKD | 2,115,000 | 05/23/2018 | 107 | ||||||||||||||||
Net unrealized appreciation |
| $ | 144,961 |
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.
FLEXSHARES SEMIANNUAL REPORT | 173 |
Table of Contents
Schedule of Investments
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS – 98.8% | ||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund(a) | ||||||||
(Cost $27,152,133) | 592,986 | $ | 35,312,316 | |||||
Total Investments – 98.8% (Cost $27,152,133) | 35,312,316 | |||||||
Other Assets Less Liabilities – 1.2% |
| 413,078 | ||||||
NET ASSETS – 100.0% | $ | 35,725,394 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Fund. |
Percentages shown are based on Net Assets.
As of April 30, 2018, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 8,359,819 | ||
Aggregate gross unrealized depreciation | (54,666 | ) | ||
Net unrealized appreciation | $ | 8,305,153 | ||
Federal income tax cost | $ | 27,174,168 |
The FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund currently seeks its investment objective by investing a substantial portion of its assets in an affiliated FlexShares Fund. The Schedule of Investments of the affiliated FlexShares Fund is located elsewhere in this Report.
Investment in a company which was affiliated for the period ending April 30, 2018, was as follows:
Security | Value October 31, 2017 | Purchases at Cost | Sales Proceeds | Shares April 30, 2018 | Value April 30, 2018 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain | ||||||||||||||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | $ | 41,185,996 | $ | 626,243 | $ | 7,834,374 | 592,986 | $ | 35,312,316 | $ | (1,084,332 | ) | $ | 313,043 | $ | 2,418,783 |
Futures Contracts
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Depreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI Emerging Markets E-Mini Index | 4 | 06/15/2018 | USD | $ | 230,440 | $ | (9,678 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Forward Foreign Currency Contracts | ||||||||||||||||||||||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2018: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
IDR* | 212,540,000 | Goldman Sachs & Co. | USD | 15,233 | 05/23/2018 | $ | 9 | |||||||||||||||
MXN | 290,000 | Goldman Sachs & Co. | USD | 15,309 | 05/23/2018 | 78 | ||||||||||||||||
PHP* | 580,000 | Morgan Stanley | USD | 11,087 | 05/23/2018 | 109 | ||||||||||||||||
TRY | 30,000 | Citibank NA | USD | 7,283 | 05/23/2018 | 45 | ||||||||||||||||
TWD* | 2,860,000 | Goldman Sachs & Co. | USD | 96,726 | 05/23/2018 | 78 |
See Accompanying Notes to the Financial Statements.
174 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund (cont.)
Forward Foreign Currency Contracts (cont.) | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 2,219,428 | Goldman Sachs & Co. | BRL* | 7,590,000 | 05/23/2018 | $ | 47,881 | |||||||||||||||
USD | 339,185 | BNP Paribas SA | CLP* | 202,460,000 | 05/23/2018 | 8,246 | ||||||||||||||||
USD | 209,157 | Toronto-Dominion Bank (The) | EUR | 170,000 | 05/23/2018 | 3,438 | ||||||||||||||||
USD | 9,728,010 | Citibank NA | HKD | 76,280,000 | 05/23/2018 | 2,869 | ||||||||||||||||
USD | 2,404,811 | Morgan Stanley | INR* | 160,170,000 | 05/23/2018 | 10,675 | ||||||||||||||||
USD | 744,418 | Citibank NA | MXN | 13,930,000 | 05/23/2018 | 5,330 | ||||||||||||||||
USD | 647,611 | Goldman Sachs & Co. | MYR* | 2,530,000 | 05/23/2018 | 3,275 | ||||||||||||||||
USD | 471,173 | Citibank NA | PLN | 1,600,000 | 05/23/2018 | 14,419 | ||||||||||||||||
USD | 1,427,839 | Goldman Sachs & Co. | RUB* | 88,110,000 | 05/23/2018 | 32,420 | ||||||||||||||||
USD | 768,166 | Citibank NA | THB | 24,090,000 | 05/23/2018 | 4,420 | ||||||||||||||||
USD | 4,671,895 | JPMorgan Chase Bank | TWD* | 137,620,000 | 05/23/2018 | 13,803 | ||||||||||||||||
USD | 2,408,442 | Citibank NA | ZAR | 29,240,000 | 05/23/2018 | 73,214 | ||||||||||||||||
KRW* | 156,950,000 | Goldman Sachs & Co. | USD | 145,806 | 05/24/2018 | 1,221 | ||||||||||||||||
Total unrealized appreciation |
| $ | 221,530 | |||||||||||||||||||
BRL* | 160,000 | Goldman Sachs & Co. | USD | 45,999 | 05/23/2018 | $ | (223 | ) | ||||||||||||||
CLP* | 4,210,000 | BNP Paribas SA | USD | 7,040 | 05/23/2018 | (159 | ) | |||||||||||||||
HKD | 1,590,000 | Bank of Montreal | USD | 202,738 | 05/23/2018 | (25 | ) | |||||||||||||||
INR* | 3,330,000 | Morgan Stanley | USD | 49,947 | 05/23/2018 | (172 | ) | |||||||||||||||
MYR* | 50,000 | Morgan Stanley | USD | 12,806 | 05/23/2018 | (72 | ) | |||||||||||||||
PLN | 30,000 | JPMorgan Chase Bank | USD | 8,732 | 05/23/2018 | (168 | ) | |||||||||||||||
RUB* | 1,830,000 | JPMorgan Chase Bank | USD | 29,656 | 05/23/2018 | (674 | ) | |||||||||||||||
THB | 500,000 | Credit Suisse International | USD | 15,903 | 05/23/2018 | (51 | ) | |||||||||||||||
USD | 728,341 | BNP Paribas SA | IDR* | 10,210,400,000 | 05/23/2018 | (3,846 | ) | |||||||||||||||
USD | 533,713 | Goldman Sachs & Co. | PHP* | 27,950,000 | 05/23/2018 | (5,806 | ) | |||||||||||||||
USD | 372,602 | Citibank NA | TRY | 1,530,000 | 05/23/2018 | (1,145 | ) | |||||||||||||||
ZAR | 610,000 | Citibank NA | USD | 49,246 | 05/23/2018 | (529 | ) | |||||||||||||||
USD | 7,031,031 | Goldman Sachs & Co. | KRW* | 7,539,690,000 | 05/24/2018 | (31,977 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (44,847 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 176,683 |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
BRL – Brazilian Real
CLP – Chilean Peso
EUR – Euro
HKD – Hong Kong Dollar
IDR – Indonesian Rupiah
INR – Indian Rupee
KRW – Korean Won
MXN – Mexican Peso
MYR – Malaysian Ringgit
PHP – Philippine Peso
PLN – Polish Zloty
RUB – Russian Ruble
THB – Thai Baht
TRY – Turkish Lira
TWD – Taiwan Dollar
USD – US Dollar
ZAR – South African Rand
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 175 |
Table of Contents
Schedule of Investments
FlexShares® US Quality Large Cap Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.6% | ||||||||
Aerospace & Defense – 2.4% | ||||||||
Boeing Co. (The) | 2,550 | $ | 850,578 | |||||
Spirit AeroSystems Holdings, Inc., Class A | 2,244 | 180,350 | ||||||
1,030,928 | ||||||||
Airlines – 0.5% | ||||||||
Delta Air Lines, Inc. | 4,437 | 231,700 | ||||||
Auto Components – 0.6% | ||||||||
Lear Corp. | 1,275 | 238,387 | ||||||
Banks – 5.9% | ||||||||
Bank of America Corp. | 31,722 | 949,122 | ||||||
Citigroup, Inc. | 11,934 | 814,734 | ||||||
Fifth Third Bancorp | 7,140 | 236,834 | ||||||
JPMorgan Chase & Co. | 1,734 | 188,625 | ||||||
PNC Financial Services Group, Inc. (The) | 2,244 | 326,749 | ||||||
2,516,064 | ||||||||
Biotechnology – 1.5% | ||||||||
AbbVie, Inc. | 2,805 | 270,823 | ||||||
Amgen, Inc. | 2,193 | 382,634 | ||||||
653,457 | ||||||||
Building Products – 0.9% | ||||||||
Lennox International, Inc. | 969 | 187,376 | ||||||
Owens Corning | 2,856 | 187,039 | ||||||
374,415 | ||||||||
Capital Markets – 5.1% | ||||||||
Ameriprise Financial, Inc. | 1,734 | 243,124 | ||||||
Goldman Sachs Group, Inc. (The) | 2,601 | 619,897 | ||||||
Morgan Stanley | 9,486 | 489,667 | ||||||
MSCI, Inc. | 1,785 | 267,447 | ||||||
S&P Global, Inc. | 2,142 | 403,981 | ||||||
T. Rowe Price Group, Inc. | 1,377 | 156,730 | ||||||
2,180,846 | ||||||||
Chemicals – 1.3% | ||||||||
LyondellBasell Industries NV, Class A | 3,111 | 328,926 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Westlake Chemical Corp. | 2,040 | $ | 218,219 | |||||
547,145 | ||||||||
Communications Equipment – 2.2% | ||||||||
Cisco Systems, Inc. | 21,267 | 941,915 | ||||||
Consumer Finance – 2.8% | ||||||||
Ally Financial, Inc. | 8,568 | 223,625 | ||||||
American Express Co. | 3,621 | 357,574 | ||||||
Capital One Financial Corp. | 4,539 | 411,324 | ||||||
Discover Financial Services | 2,550 | 181,687 | ||||||
1,174,210 | ||||||||
Diversified Financial Services – 0.4% | ||||||||
Berkshire Hathaway, Inc., Class B* | 867 | 167,964 | ||||||
Diversified Telecommunication Services – 1.3% | ||||||||
AT&T, Inc. | 11,169 | 365,227 | ||||||
Verizon Communications, Inc. | 4,029 | 198,831 | ||||||
564,058 | ||||||||
Electric Utilities – 2.5% | ||||||||
Edison International | 3,672 | 240,590 | ||||||
Exelon Corp. | 8,568 | 339,978 | ||||||
FirstEnergy Corp. | 7,650 | 263,160 | ||||||
PG&E Corp. | 5,253 | 242,163 | ||||||
1,085,891 | ||||||||
Electrical Equipment – 0.6% | ||||||||
Eaton Corp. plc | 3,519 | 264,031 | ||||||
Electronic Equipment, Instruments & Components – 0.9% | ||||||||
Arrow Electronics, Inc.* | 2,448 | 182,964 | ||||||
TE Connectivity Ltd. | 2,346 | 215,245 | ||||||
398,209 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 4.4% | ||||||||
Duke Realty Corp. | 8,619 | 233,575 | ||||||
Equity Residential | 3,009 | 185,685 | ||||||
Host Hotels & Resorts, Inc. | 10,761 | 210,485 | ||||||
Kimco Realty Corp. | 13,617 | 197,583 | ||||||
Prologis, Inc. | 4,131 | 268,143 | ||||||
Public Storage | 1,530 | 308,724 |
See Accompanying Notes to the Financial Statements.
176 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
SL Green Realty Corp. | 2,193 | $ | 214,344 | |||||
Ventas, Inc. | 4,233 | 217,661 | ||||||
Weyerhaeuser Co. | 1,530 | 56,273 | ||||||
1,892,473 | ||||||||
Food & Staples Retailing – 3.5% | ||||||||
CVS Health Corp. | 9,129 | 637,478 | ||||||
Walgreens Boots Alliance, Inc. | 2,142 | 142,336 | ||||||
Walmart, Inc. | 8,058 | 712,811 | ||||||
1,492,625 | ||||||||
Food Products – 2.3% | ||||||||
Archer-Daniels-Midland Co. | 6,477 | 293,926 | ||||||
Conagra Brands, Inc. | 6,426 | 238,212 | ||||||
JM Smucker Co. (The) | 2,091 | 238,541 | ||||||
Tyson Foods, Inc., Class A | 2,958 | 207,356 | ||||||
978,035 | ||||||||
Gas Utilities – 0.7% | ||||||||
UGI Corp. | 5,712 | 276,404 | ||||||
Health Care Equipment & Supplies – 1.8% | ||||||||
Baxter International, Inc. | 3,825 | 265,838 | ||||||
Danaher Corp. | 5,151 | 516,748 | ||||||
782,586 | ||||||||
Health Care Providers & Services – 4.9% | ||||||||
Anthem, Inc. | 2,193 | 517,526 | ||||||
Centene Corp.* | 2,499 | 271,341 | ||||||
Cigna Corp. | 1,530 | 262,885 | ||||||
Express Scripts Holding Co.* | 4,794 | 362,906 | ||||||
Humana, Inc. | 1,326 | 390,083 | ||||||
UnitedHealth Group, Inc. | 1,173 | 277,297 | ||||||
2,082,038 | ||||||||
Hotels, Restaurants & Leisure – 1.4% | ||||||||
Hilton Worldwide Holdings, Inc. | 2,601 | 205,063 | ||||||
Royal Caribbean Cruises Ltd. | 1,989 | 215,190 | ||||||
Yum! Brands, Inc. | 1,836 | 159,915 | ||||||
580,168 |
Investments | Shares | Value | ||||||
Household Durables – 1.6% | ||||||||
DR Horton, Inc. | 5,406 | $ | 238,621 | |||||
NVR, Inc.* | 70 | 217,000 | ||||||
PulteGroup, Inc. | 6,987 | 212,125 | ||||||
667,746 | ||||||||
Independent Power and Renewable Electricity Producers – 0.7% | ||||||||
NRG Energy, Inc. | 9,486 | 294,066 | ||||||
Insurance – 2.7% | ||||||||
Athene Holding Ltd., Class A* | 4,539 | 222,411 | ||||||
Lincoln National Corp. | 3,417 | 241,377 | ||||||
Loews Corp. | 4,437 | 232,765 | ||||||
Reinsurance Group of America, Inc. | 1,377 | 205,724 | ||||||
Torchmark Corp. | 969 | 84,051 | ||||||
Unum Group | 3,570 | 172,716 | ||||||
1,159,044 | ||||||||
Internet & Direct Marketing Retail – 1.3% | ||||||||
Amazon.com, Inc.* | 343 | 537,183 | ||||||
Internet Software & Services – 2.9% | ||||||||
Alphabet, Inc., Class A* | 43 | 43,799 | ||||||
Alphabet, Inc., Class C* | 340 | 345,892 | ||||||
eBay, Inc.* | 3,621 | 137,163 | ||||||
Facebook, Inc., Class A* | 1,173 | 201,756 | ||||||
IAC/InterActiveCorp* | 1,683 | 272,882 | ||||||
VeriSign, Inc.* | 2,142 | 251,514 | ||||||
1,253,006 | ||||||||
IT Services – 2.5% | ||||||||
Amdocs Ltd. | 1,224 | 82,314 | ||||||
Cognizant Technology Solutions Corp., Class A | 5,406 | 442,319 | ||||||
International Business Machines Corp. | 663 | 96,108 | ||||||
Leidos Holdings, Inc. | 3,774 | 242,404 | ||||||
Total System Services, Inc. | 2,499 | 210,066 | ||||||
1,073,211 | ||||||||
Machinery – 2.7% | ||||||||
Caterpillar, Inc. | 3,111 | 449,104 | ||||||
Cummins, Inc. | 1,581 | 252,739 | ||||||
Dover Corp. | 2,142 | 198,563 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 177 |
Table of Contents
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
Pentair plc | 3,468 | $ | 233,327 | |||||
1,133,733 | ||||||||
Media – 0.8% | ||||||||
Discovery, Inc., Class A* | 1,479 | 34,978 | ||||||
Discovery, Inc., Class C* | 1,122 | 24,931 | ||||||
News Corp., Class A | 11,883 | 189,890 | ||||||
Viacom, Inc., Class B | 2,703 | 81,523 | ||||||
331,322 | ||||||||
Metals & Mining – 1.9% | ||||||||
Freeport-McMoRan, Inc. | 14,637 | 222,629 | ||||||
Newmont Mining Corp. | 2,958 | 116,220 | ||||||
Nucor Corp. | 4,131 | 254,552 | ||||||
Steel Dynamics, Inc. | 4,539 | 203,392 | ||||||
796,793 | ||||||||
Multiline Retail – 1.3% | ||||||||
Dollar Tree, Inc.* | 2,550 | 244,519 | ||||||
Target Corp. | 4,386 | 318,424 | ||||||
562,943 | ||||||||
Multi-Utilities – 1.0% | ||||||||
CenterPoint Energy, Inc. | 7,599 | 192,483 | ||||||
DTE Energy Co. | 2,346 | 247,268 | ||||||
439,751 | ||||||||
Oil, Gas & Consumable Fuels – 7.8% | ||||||||
Chevron Corp. | 7,650 | 957,091 | ||||||
ConocoPhillips | 11,016 | 721,548 | ||||||
Exxon Mobil Corp. | 5,304 | 412,386 | ||||||
Marathon Petroleum Corp. | 4,743 | 355,298 | ||||||
Phillips 66 | 3,876 | 431,438 | ||||||
Valero Energy Corp. | 3,978 | 441,280 | ||||||
3,319,041 | ||||||||
Pharmaceuticals – 3.0% | ||||||||
Johnson & Johnson | 6,834 | 864,432 | ||||||
Mylan NV* | 5,355 | 207,560 | ||||||
Perrigo Co. plc | 2,856 | 223,168 | ||||||
1,295,160 |
Investments | Shares | Value | ||||||
Road & Rail – 0.8% | ||||||||
Norfolk Southern Corp. | 2,346 | $ | 336,581 | |||||
Semiconductors & Semiconductor Equipment – 6.3% | ||||||||
Intel Corp. | 19,737 | 1,018,824 | ||||||
KLA-Tencor Corp. | 1,887 | 191,983 | ||||||
Lam Research Corp. | 1,377 | 254,828 | ||||||
Micron Technology, Inc.* | 9,282 | 426,786 | ||||||
NVIDIA Corp. | 2,907 | 653,784 | ||||||
Texas Instruments, Inc. | 1,581 | 160,361 | ||||||
2,706,566 | ||||||||
Software – 4.0% | ||||||||
Adobe Systems, Inc.* | 1,275 | 282,540 | ||||||
CA, Inc. | 5,814 | 202,327 | ||||||
Dell Technologies, Inc., Class V* | 1,734 | 124,449 | ||||||
Intuit, Inc. | 2,244 | 414,669 | ||||||
Microsoft Corp. | 7,344 | 686,811 | ||||||
1,710,796 | ||||||||
Specialty Retail – 3.3% | ||||||||
Best Buy Co., Inc. | 3,672 | 281,018 | ||||||
Gap, Inc. (The) | 7,191 | 210,265 | ||||||
Home Depot, Inc. (The) | 5,049 | 933,055 | ||||||
1,424,338 | ||||||||
Technology Hardware, Storage & Peripherals – 5.0% | ||||||||
Apple, Inc. | 6,273 | 1,036,676 | ||||||
HP, Inc. | 16,371 | 351,813 | ||||||
Seagate Technology plc | 4,998 | 289,334 | ||||||
Western Digital Corp. | 3,213 | 253,152 | ||||||
Xerox Corp. | 6,375 | 200,494 | ||||||
2,131,469 | ||||||||
Textiles, Apparel & Luxury Goods – 0.6% | ||||||||
PVH Corp. | 1,683 | 268,725 | ||||||
Tobacco – 0.3% | ||||||||
Altria Group, Inc. | 2,295 | 128,772 | ||||||
Trading Companies & Distributors – 0.6% | ||||||||
WW Grainger, Inc. | 969 | 272,628 |
See Accompanying Notes to the Financial Statements.
178 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® US Quality Large Cap Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Wireless Telecommunication Services – 0.6% | ||||||||
T-Mobile US, Inc.* | 4,335 | $ | 262,311 | |||||
Total Common Stocks (Cost $38,738,982) | 42,558,734 | |||||||
Total Investments – 99.6% (Cost $38,738,982) | 42,558,734 | |||||||
Other Assets Less Liabilities – 0.4% |
| 152,888 | ||||||
NET ASSETS – 100.0% | $ | 42,711,622 |
* | Non-income producing security. |
Percentages shown are based on Net Assets.
As of April 30, 2018, 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 | $ | 4,430,154 | ||
Aggregate gross unrealized depreciation | (613,774 | ) | ||
Net unrealized appreciation | $ | 3,816,380 | ||
Federal income tax cost | $ | 38,737,487 |
Futures Contracts
FlexShares® US Quality Large Cap Index Fund had the following open futures contract as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Depreciation* | ||||||||||||||||
Long Contracts | ||||||||||||||||||||
S&P 500 E-Mini Index | 1 | 06/15/2018 | USD | $ | 132,350 | $ | (4,867 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 179 |
Table of Contents
Schedule of Investments
FlexShares® STOXX® US ESG Impact Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.9% | ||||||||
Aerospace & Defense – 0.7% | ||||||||
L3 Technologies, Inc. | 30 | $ | 5,876 | |||||
United Technologies Corp. | 1,305 | 156,796 | ||||||
162,672 | ||||||||
Air Freight & Logistics – 1.2% | ||||||||
Expeditors International of Washington, Inc. | 555 | 35,442 | ||||||
FedEx Corp. | 690 | 170,568 | ||||||
United Parcel Service, Inc., Class B | 720 | 81,720 | ||||||
287,730 | ||||||||
Airlines – 0.3% | ||||||||
Alaska Air Group, Inc. | 375 | 24,349 | ||||||
American Airlines Group, Inc. | 750 | 32,198 | ||||||
United Continental Holdings, Inc.* | 345 | 23,301 | ||||||
79,848 | ||||||||
Auto Components – 0.6% | ||||||||
Aptiv plc | 450 | 38,061 | ||||||
Autoliv, Inc. | 120 | 16,086 | ||||||
BorgWarner, Inc. | 900 | 44,046 | ||||||
Goodyear Tire & Rubber Co. (The) | 1,395 | 35,028 | ||||||
133,221 | ||||||||
Automobiles – 0.5% | ||||||||
Ford Motor Co. | 1,200 | 13,488 | ||||||
Harley-Davidson, Inc. | 615 | 25,295 | ||||||
Tesla, Inc.* | 300 | 88,170 | ||||||
126,953 | ||||||||
Banks – 8.8% | ||||||||
Bank of America Corp. | 22,995 | 688,010 | ||||||
Citigroup, Inc. | 3,780 | 258,061 | ||||||
Citizens Financial Group, Inc. | 900 | 37,341 | ||||||
First Republic Bank | 195 | 18,110 | ||||||
JPMorgan Chase & Co. | 8,535 | 928,437 | ||||||
KeyCorp | 2,505 | 49,900 | ||||||
PNC Financial Services Group, Inc. (The) | 645 | 93,918 | ||||||
SVB Financial Group* | 15 | 4,494 | ||||||
2,078,271 |
Investments | Shares | Value | ||||||
Beverages – 2.5% | ||||||||
Brown-Forman Corp., Class B | 660 | $ | 36,987 | |||||
Coca-Cola Co. (The) | 4,665 | 201,575 | ||||||
Coca-Cola European Partners plc | 1,335 | 52,332 | ||||||
Dr Pepper Snapple Group, Inc. | 615 | 73,775 | ||||||
Molson Coors Brewing Co., Class B | 675 | 48,087 | ||||||
PepsiCo, Inc. | 1,665 | 168,065 | ||||||
580,821 | ||||||||
Biotechnology – 2.5% | ||||||||
AbbVie, Inc. | 1,575 | 152,066 | ||||||
Alkermes plc* | 150 | 6,641 | ||||||
Alnylam Pharmaceuticals, Inc.* | 165 | 15,598 | ||||||
Amgen, Inc. | 1,230 | 214,610 | ||||||
Biogen, Inc.* | 360 | 98,496 | ||||||
BioMarin Pharmaceutical, Inc.* | 255 | 21,295 | ||||||
Regeneron Pharmaceuticals, Inc.* | 15 | 4,555 | ||||||
Vertex Pharmaceuticals, Inc.* | 420 | 64,327 | ||||||
577,588 | ||||||||
Building Products – 0.6% | ||||||||
Fortune Brands Home & Security, Inc. | 480 | 26,251 | ||||||
Johnson Controls International plc | 2,055 | 69,603 | ||||||
Masco Corp. | 915 | 34,651 | ||||||
Owens Corning | 150 | 9,824 | ||||||
140,329 | ||||||||
Capital Markets – 3.1% | ||||||||
Bank of New York Mellon Corp. (The) | 2,490 | 135,730 | ||||||
Goldman Sachs Group, Inc. (The) | 870 | 207,347 | ||||||
Intercontinental Exchange, Inc. | 465 | 33,694 | ||||||
Morgan Stanley | 2,145 | 110,725 | ||||||
MSCI, Inc. | 120 | 17,980 | ||||||
S&P Global, Inc. | 555 | 104,673 | ||||||
SEI Investments Co. | 315 | 19,917 | ||||||
State Street Corp. | 900 | 89,802 | ||||||
719,868 | ||||||||
Chemicals – 2.4% | ||||||||
Air Products & Chemicals, Inc. | 390 | 63,293 | ||||||
Celanese Corp., Series A | 240 | 26,081 | ||||||
Eastman Chemical Co. | 150 | 15,312 | ||||||
Ecolab, Inc. | 645 | 93,377 |
See Accompanying Notes to the Financial Statements.
180 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Chemicals – (continued) | ||||||||
FMC Corp. | 60 | $ | 4,784 | |||||
International Flavors & Fragrances, Inc. | 180 | 25,427 | ||||||
LyondellBasell Industries NV, Class A | 450 | 47,579 | ||||||
Monsanto Co. | 1,095 | 137,280 | ||||||
Mosaic Co. (The) | 570 | 15,361 | ||||||
PPG Industries, Inc. | 705 | 74,645 | ||||||
Sherwin-Williams Co. (The) | 150 | 55,149 | ||||||
558,288 | ||||||||
Commercial Services & Supplies – 0.1% | ||||||||
Cintas Corp. | 195 | 33,208 | ||||||
Communications Equipment – 1.6% | ||||||||
Cisco Systems, Inc. | 7,890 | 349,448 | ||||||
Motorola Solutions, Inc. | 180 | 19,769 | ||||||
369,217 | ||||||||
Construction Materials – 0.0%(a) | ||||||||
Vulcan Materials Co. | 15 | 1,675 | ||||||
Consumer Finance – 1.1% | ||||||||
Ally Financial, Inc. | 360 | 9,396 | ||||||
American Express Co. | 930 | 91,838 | ||||||
Capital One Financial Corp. | 1,050 | 95,151 | ||||||
Synchrony Financial | 1,695 | 56,223 | ||||||
252,608 | ||||||||
Containers & Packaging – 0.4% | ||||||||
Avery Dennison Corp. | 30 | 3,144 | ||||||
Ball Corp. | 660 | 26,459 | ||||||
Crown Holdings, Inc.* | 180 | 8,971 | ||||||
International Paper Co. | 630 | 32,483 | ||||||
Packaging Corp. of America | 135 | 15,618 | ||||||
Sealed Air Corp. | 30 | 1,316 | ||||||
87,991 | ||||||||
Diversified Financial Services – 0.1% | ||||||||
Voya Financial, Inc. | 300 | 15,705 | ||||||
Diversified Telecommunication Services – 3.0% | ||||||||
AT&T, Inc. | 8,520 | 278,604 | ||||||
CenturyLink, Inc. | 8,820 | 163,876 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
Verizon Communications, Inc. | 5,340 | $ | 263,529 | |||||
706,009 | ||||||||
Electric Utilities – 1.5% | ||||||||
Alliant Energy Corp. | 930 | 39,944 | ||||||
Duke Energy Corp. | 390 | 31,262 | ||||||
Entergy Corp. | 435 | 35,492 | ||||||
Eversource Energy | 300 | 18,075 | ||||||
NextEra Energy, Inc. | 1,110 | 181,940 | ||||||
PG&E Corp. | 150 | 6,915 | ||||||
Pinnacle West Capital Corp. | 480 | 38,640 | ||||||
352,268 | ||||||||
Electrical Equipment – 0.8% | ||||||||
Eaton Corp. plc | 1,425 | 106,918 | ||||||
Emerson Electric Co. | 705 | 46,819 | ||||||
Rockwell Automation, Inc. | 285 | 46,891 | ||||||
200,628 | ||||||||
Electronic Equipment, Instruments & Components – 0.3% | ||||||||
Amphenol Corp., Class A | 300 | 25,113 | ||||||
CDW Corp. | 540 | 38,497 | ||||||
63,610 | ||||||||
Energy Equipment & Services – 1.4% | ||||||||
Halliburton Co. | 4,605 | 244,019 | ||||||
Schlumberger Ltd. | 1,380 | 94,613 | ||||||
338,632 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.1% | ||||||||
AvalonBay Communities, Inc. | 570 | 92,910 | ||||||
Digital Realty Trust, Inc. | 225 | 23,780 | ||||||
HCP, Inc. | 75 | 1,752 | ||||||
Host Hotels & Resorts, Inc. | 585 | 11,443 | ||||||
Iron Mountain, Inc. | 45 | 1,527 | ||||||
Ventas, Inc. | 915 | 47,049 | ||||||
Vornado Realty Trust | 90 | 6,123 | ||||||
Weyerhaeuser Co. | 1,770 | 65,101 | ||||||
249,685 | ||||||||
Food & Staples Retailing – 1.3% | ||||||||
Costco Wholesale Corp. | 795 | 156,742 | ||||||
CVS Health Corp. | 150 | 10,475 | ||||||
Kroger Co. (The) | 1,170 | 29,472 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 181 |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
Sysco Corp. | 1,770 | $ | 110,696 | |||||
Walgreens Boots Alliance, Inc. | 165 | 10,964 | ||||||
318,349 | ||||||||
Food Products – 2.9% | ||||||||
Archer-Daniels-Midland Co. | 1,785 | 81,003 | ||||||
Bunge Ltd. | 315 | 22,752 | ||||||
Campbell Soup Co. | 990 | 40,372 | ||||||
Conagra Brands, Inc. | 1,785 | 66,170 | ||||||
General Mills, Inc. | 495 | 21,651 | ||||||
Hershey Co. (The) | 135 | 12,412 | ||||||
Hormel Foods Corp. | 1,335 | 48,394 | ||||||
Ingredion, Inc. | 330 | 39,960 | ||||||
JM Smucker Co. (The) | 435 | 49,625 | ||||||
Kellogg Co. | 555 | 32,690 | ||||||
McCormick & Co., Inc. (Non-Voting) | 330 | 34,785 | ||||||
Mondelez International, Inc., Class A | 4,785 | 189,007 | ||||||
Tyson Foods, Inc., Class A | 615 | 43,112 | ||||||
681,933 | ||||||||
Health Care Equipment & Supplies – 3.7% | ||||||||
Abbott Laboratories | 4,185 | 243,274 | ||||||
Baxter International, Inc. | 1,035 | 71,932 | ||||||
Becton Dickinson and Co. | 600 | 139,122 | ||||||
Cooper Cos., Inc. (The) | 45 | 10,292 | ||||||
Danaher Corp. | 750 | 75,240 | ||||||
Edwards Lifesciences Corp.* | 315 | 40,118 | ||||||
Hologic, Inc.* | 1,050 | 40,730 | ||||||
IDEXX Laboratories, Inc.* | 105 | 20,421 | ||||||
Intuitive Surgical, Inc.* | 60 | 26,447 | ||||||
Medtronic plc | 2,160 | 173,081 | ||||||
Teleflex, Inc. | 45 | 12,055 | ||||||
Varian Medical Systems, Inc.* | 90 | 10,403 | ||||||
863,115 | ||||||||
Health Care Providers & Services – 1.2% | ||||||||
Anthem, Inc. | 600 | 141,594 | ||||||
Cigna Corp. | 210 | 36,082 | ||||||
Humana, Inc. | 180 | 52,953 | ||||||
Laboratory Corp. of America Holdings* | 315 | 53,786 | ||||||
284,415 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – 3.3% | ||||||||
Carnival Corp. | 930 | $ | 58,646 | |||||
Darden Restaurants, Inc. | 150 | 13,929 | ||||||
Hilton Worldwide Holdings, Inc. | 450 | 35,478 | ||||||
Marriott International, Inc., Class A | 750 | 102,510 | ||||||
McDonald’s Corp. | 1,170 | 195,905 | ||||||
Royal Caribbean Cruises Ltd. | 510 | 55,177 | ||||||
Starbucks Corp. | 3,705 | 213,297 | ||||||
Wyndham Worldwide Corp. | 255 | 29,123 | ||||||
Yum! Brands, Inc. | 825 | 71,857 | ||||||
775,922 | ||||||||
Household Durables – 0.1% | ||||||||
Whirlpool Corp. | 135 | 20,918 | ||||||
Household Products – 2.2% | ||||||||
Church & Dwight Co., Inc. | 1,875 | 86,625 | ||||||
Clorox Co. (The) | 885 | 103,722 | ||||||
Colgate-Palmolive Co. | 390 | 25,440 | ||||||
Procter & Gamble Co. (The) | 4,290 | 310,338 | ||||||
526,125 | ||||||||
Independent Power and Renewable Electricity Producers – 0.1% | ||||||||
AES Corp. | 1,965 | 24,052 | ||||||
Industrial Conglomerates – 1.7% | ||||||||
3M Co. | 1,080 | 209,941 | ||||||
General Electric Co. | 11,505 | 161,875 | ||||||
Roper Technologies, Inc. | 150 | 39,629 | ||||||
411,445 | ||||||||
Insurance – 1.8% | ||||||||
Aflac, Inc. | 1,530 | 69,722 | ||||||
Alleghany Corp. | 15 | 8,620 | ||||||
Allstate Corp. (The) | 435 | 42,552 | ||||||
Aon plc | 465 | 66,248 | ||||||
Arthur J Gallagher & Co. | 270 | 18,897 | ||||||
Chubb Ltd. | 45 | 6,105 | ||||||
Hartford Financial Services Group, Inc. (The) | 615 | 33,112 | ||||||
MetLife, Inc. | 1,440 | 68,645 | ||||||
Principal Financial Group, Inc. | 930 | 55,075 | ||||||
Reinsurance Group of America, Inc. | 255 | 38,097 |
See Accompanying Notes to the Financial Statements.
182 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
XL Group Ltd. | 255 | $ | 14,175 | |||||
421,248 | ||||||||
Internet & Direct Marketing Retail – 0.6% | ||||||||
Booking Holdings, Inc.* | 60 | 130,680 | ||||||
Internet Software & Services – 4.5% | ||||||||
Akamai Technologies, Inc.* | 60 | 4,299 | ||||||
Alphabet, Inc., Class C* | 720 | 732,478 | ||||||
Facebook, Inc., Class A* | 1,845 | 317,340 | ||||||
1,054,117 | ||||||||
IT Services – 2.3% | ||||||||
Accenture plc, Class A | 1,680 | 254,016 | ||||||
Amdocs Ltd. | 375 | 25,219 | ||||||
International Business Machines Corp. | 1,590 | 230,486 | ||||||
Jack Henry & Associates, Inc. | 105 | 12,545 | ||||||
Total System Services, Inc. | 180 | 15,131 | ||||||
Western Union Co. (The) | 525 | 10,369 | ||||||
547,766 | ||||||||
Leisure Products – 0.2% | ||||||||
Hasbro, Inc. | 435 | 38,319 | ||||||
Life Sciences Tools & Services – 0.6% | ||||||||
Agilent Technologies, Inc. | 495 | 32,541 | ||||||
Thermo Fisher Scientific, Inc. | 525 | 110,434 | ||||||
Waters Corp.* | 30 | 5,652 | ||||||
148,627 | ||||||||
Machinery – 1.7% | ||||||||
Cummins, Inc. | 375 | 59,947 | ||||||
Deere & Co. | 480 | 64,958 | ||||||
Dover Corp. | 375 | 34,763 | ||||||
Illinois Tool Works, Inc. | 540 | 76,691 | ||||||
Ingersoll-Rand plc | 720 | 60,401 | ||||||
Pentair plc | 210 | 14,129 | ||||||
Snap-on, Inc. | 150 | 21,787 | ||||||
Stanley Black & Decker, Inc. | 450 | 63,716 | ||||||
Xylem, Inc. | 210 | 15,309 | ||||||
411,701 |
Investments | Shares | Value | ||||||
Media – 1.4% | ||||||||
Comcast Corp., Class A | 225 | $ | 7,063 | |||||
Interpublic Group of Cos., Inc. (The) | 1,365 | 32,200 | ||||||
Time Warner, Inc. | 165 | 15,642 | ||||||
Twenty-First Century Fox, Inc., Class A | 1,470 | 53,743 | ||||||
Walt Disney Co. (The) | 2,235 | 224,238 | ||||||
332,886 | ||||||||
Metals & Mining – 0.2% | ||||||||
Newmont Mining Corp. | 1,275 | 50,095 | ||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.2% | ||||||||
Annaly Capital Management, Inc. | 4,605 | 47,754 | ||||||
Multiline Retail – 0.7% | ||||||||
Dollar General Corp. | 420 | 40,543 | ||||||
Kohl’s Corp. | 285 | 17,704 | ||||||
Target Corp. | 1,335 | 96,921 | ||||||
155,168 | ||||||||
Multi-Utilities – 0.9% | ||||||||
CenterPoint Energy, Inc. | 2,175 | 55,093 | ||||||
CMS Energy Corp. | 1,020 | 48,134 | ||||||
Sempra Energy | 150 | 16,770 | ||||||
WEC Energy Group, Inc. | 1,425 | 91,599 | ||||||
211,596 | ||||||||
Oil, Gas & Consumable Fuels – 7.1% | ||||||||
Chevron Corp. | 3,735 | 467,286 | ||||||
ConocoPhillips | 2,805 | 183,728 | ||||||
Devon Energy Corp. | 300 | 10,899 | ||||||
EQT Corp. | 660 | 33,125 | ||||||
Exxon Mobil Corp. | 8,130 | 632,107 | ||||||
Hess Corp. | 1,170 | 66,678 | ||||||
Phillips 66 | 1,335 | 148,599 | ||||||
Valero Energy Corp. | 1,185 | 131,452 | ||||||
1,673,874 | ||||||||
Personal Products – 0.4% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 600 | 88,854 | ||||||
Pharmaceuticals – 2.9% | ||||||||
Allergan plc | 90 | 13,829 | ||||||
Bristol-Myers Squibb Co. | 3,015 | 157,172 | ||||||
Eli Lilly & Co. | 360 | 29,185 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 183 |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Pharmaceuticals – (continued) | ||||||||
Merck & Co., Inc. | 1,980 | $ | 116,563 | |||||
Perrigo Co. plc | 360 | 28,130 | ||||||
Pfizer, Inc. | 9,195 | 336,629 | ||||||
681,508 | ||||||||
Real Estate Management & Development – 0.1% | ||||||||
CBRE Group, Inc., Class A* | 345 | 15,632 | ||||||
Semiconductors & Semiconductor Equipment – 5.2% | ||||||||
Intel Corp. | 10,695 | 552,076 | ||||||
Lam Research Corp. | 165 | 30,535 | ||||||
Maxim Integrated Products, Inc. | 165 | 8,992 | ||||||
Microchip Technology, Inc. | 360 | 30,118 | ||||||
NVIDIA Corp. | 1,260 | 283,374 | ||||||
QUALCOMM, Inc. | 1,695 | 86,462 | ||||||
Texas Instruments, Inc. | 2,130 | 216,046 | ||||||
Xilinx, Inc. | 285 | 18,308 | ||||||
1,225,911 | ||||||||
Software – 7.8% | ||||||||
Activision Blizzard, Inc. | 795 | 52,748 | ||||||
Adobe Systems, Inc.* | 630 | 139,608 | ||||||
Autodesk, Inc.* | 420 | 52,878 | ||||||
CA, Inc. | 90 | 3,132 | ||||||
Intuit, Inc. | 435 | 80,384 | ||||||
Microsoft Corp. | 13,995 | 1,308,811 | ||||||
Oracle Corp. | 3,825 | 174,688 | ||||||
Snap, Inc., Class A* | 900 | 12,897 | ||||||
Symantec Corp. | 270 | 7,503 | ||||||
1,832,649 | ||||||||
Specialty Retail – 1.6% | ||||||||
AutoZone, Inc.* | 45 | 28,103 | ||||||
Best Buy Co., Inc. | 525 | 40,178 | ||||||
Lowe’s Cos., Inc. | 1,020 | 84,079 | ||||||
Tiffany & Co. | 315 | 32,392 | ||||||
TJX Cos., Inc. (The) | 1,665 | 141,275 | ||||||
Ulta Beauty, Inc.* | 165 | 41,400 | ||||||
367,427 | ||||||||
Technology Hardware, Storage & Peripherals – 5.5% | ||||||||
Apple, Inc. | 6,945 | 1,147,731 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Hewlett Packard Enterprise Co. | 2,490 | $ | 42,455 | |||||
HP, Inc. | 3,165 | 68,016 | ||||||
NetApp, Inc. | 90 | 5,992 | ||||||
Western Digital Corp. | 285 | 22,455 | ||||||
Xerox Corp. | 465 | 14,624 | ||||||
1,301,273 | ||||||||
Textiles, Apparel & Luxury Goods – 1.1% | ||||||||
Hanesbrands, Inc. | 825 | 15,238 | ||||||
NIKE, Inc., Class B | 2,445 | 167,214 | ||||||
Tapestry, Inc. | 660 | 35,488 | ||||||
VF Corp. | 645 | 52,161 | ||||||
270,101 | ||||||||
Tobacco – 0.5% | ||||||||
Altria Group, Inc. | 1,050 | 58,915 | ||||||
Philip Morris International, Inc. | 645 | 52,890 | ||||||
111,805 | ||||||||
Trading Companies & Distributors – 0.2% | ||||||||
Fastenal Co. | 705 | 35,243 | ||||||
HD Supply Holdings, Inc.* | 555 | 21,484 | ||||||
56,727 | ||||||||
Water Utilities – 0.3% | ||||||||
American Water Works Co., Inc. | 780 | 67,532 | ||||||
Total Common Stocks (Cost $21,661,879) | 23,266,349 | |||||||
Total Investments – 98.9% (Cost $21,661,879) | 23,266,349 | |||||||
Other Assets Less Liabilities – 1.1% |
| 253,308 | ||||||
NET ASSETS – 100.0% | $ | 23,519,657 |
* | Non-income producing security. |
(a) | Represents less than 0.05% of net assets. |
Percentages shown are based on Net Assets.
See Accompanying Notes to the Financial Statements.
184 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® US ESG Impact Index Fund (cont.)
As of April 30, 2018, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 2,079,819 | ||
Aggregate gross unrealized depreciation | (482,439 | ) | ||
Net unrealized appreciation | $ | 1,597,380 | ||
Federal income tax cost | $ | 21,665,885 |
Futures Contracts
FlexShares® STOXX® US ESG Impact Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
Long Contracts | ||||||||||||||||||||
Russell 2000 E-Mini Index | 1 | 06/15/2018 | USD | $ | 77,190 | $ | 1,013 | |||||||||||||
S&P 500 E-Mini Index | 1 | 06/15/2018 | USD | 132,350 | (4,097 | ) | ||||||||||||||
$ | (3,084 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 185 |
Table of Contents
Schedule of Investments
FlexShares® STOXX® Global ESG Impact Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.6% | ||||||||
Aerospace & Defense – 0.2% | ||||||||
Cobham plc* | 2,170 | $ | 3,440 | |||||
Meggitt plc | 84 | 547 | ||||||
United Technologies Corp. | 1,176 | 141,296 | ||||||
145,283 | ||||||||
Air Freight & Logistics – 0.6% | ||||||||
Bollore SA | 3,276 | 16,300 | ||||||
Deutsche Post AG (Registered) | 1,554 | 67,779 | ||||||
Expeditors International of Washington, Inc. | 392 | 25,033 | ||||||
FedEx Corp. | 896 | 221,491 | ||||||
Royal Mail plc | 3,318 | 26,561 | ||||||
United Parcel Service, Inc., Class B | 420 | 47,670 | ||||||
404,834 | ||||||||
Airlines – 0.3% | ||||||||
Air France-KLM* | 784 | 7,708 | ||||||
Alaska Air Group, Inc. | 574 | 37,270 | ||||||
American Airlines Group, Inc. | 602 | 25,844 | ||||||
Deutsche Lufthansa AG (Registered) | 406 | 11,856 | ||||||
easyJet plc | 1,078 | 23,608 | ||||||
International Consolidated Airlines Group SA, DI | 2,786 | 24,183 | ||||||
Qantas Airways Ltd. | 1,764 | 7,683 | ||||||
United Continental Holdings, Inc.* | 602 | 40,659 | ||||||
178,811 | ||||||||
Auto Components – 0.6% | ||||||||
Autoliv, Inc. | 196 | 26,274 | ||||||
BorgWarner, Inc. | 1,036 | 50,702 | ||||||
Bridgestone Corp. | 800 | 33,550 | ||||||
Cie Generale des Etablissements Michelin SCA | 672 | 94,628 | ||||||
Faurecia SA | 350 | 28,671 | ||||||
NGK Spark Plug Co. Ltd. | 2,800 | 72,159 | ||||||
Nokian Renkaat OYJ | 126 | 5,062 | ||||||
Valeo SA | 896 | 60,016 | ||||||
371,062 | ||||||||
Automobiles – 1.5% | ||||||||
Bayerische Motoren Werke AG | 1,918 | 214,283 |
Investments | Shares | Value | ||||||
Automobiles – (continued) | ||||||||
Daimler AG (Registered) | 1,750 | $ | 138,490 | |||||
Ferrari NV | 280 | 34,523 | ||||||
Fiat Chrysler Automobiles NV* | 1,778 | 39,892 | ||||||
Ford Motor Co. | 9,128 | 102,599 | ||||||
Harley-Davidson, Inc. | 700 | 28,791 | ||||||
Honda Motor Co. Ltd. | 9,800 | 337,369 | ||||||
Peugeot SA | 1,722 | 42,484 | ||||||
Porsche Automobil Holding SE (Preference) | 154 | 13,173 | ||||||
Renault SA | 504 | 54,707 | ||||||
1,006,311 | ||||||||
Banks – 11.6% | ||||||||
ABN AMRO Group NV, CVA(a) | 1,288 | 40,040 | ||||||
AIB Group plc | 1,526 | 9,112 | ||||||
Australia & New Zealand Banking Group Ltd. | 10,430 | 211,314 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 22,932 | 186,464 | ||||||
Banco Comercial Portugues SA, Class R* | 15,862 | 5,330 | ||||||
Banco de Sabadell SA | 16,296 | 32,024 | ||||||
Banco Santander SA | 13,398 | 86,975 | ||||||
Bank of America Corp. | 43,470 | 1,300,622 | ||||||
Bank of Ireland Group plc | 644 | 5,797 | ||||||
Bank of Montreal | 2,058 | 156,539 | ||||||
Bank of Nova Scotia (The) | 2,114 | 130,143 | ||||||
Bankinter SA | 938 | 9,837 | ||||||
Barclays plc | 26,894 | 76,771 | ||||||
BNP Paribas SA | 3,710 | 286,785 | ||||||
BPER Banca | 1,932 | 11,186 | ||||||
CaixaBank SA | 8,302 | 40,513 | ||||||
Citigroup, Inc. | 7,448 | 508,475 | ||||||
Commerzbank AG* | 1,610 | 20,833 | ||||||
Commonwealth Bank of Australia | 6,748 | 365,832 | ||||||
Danske Bank A/S | 1,904 | 66,506 | ||||||
DNB ASA | 910 | 17,101 | ||||||
Erste Group Bank AG* | 154 | 7,554 | ||||||
Hang Seng Bank Ltd. | 1,200 | 30,519 | ||||||
HSBC Holdings plc | 22,652 | 226,323 | ||||||
ING Groep NV | 15,540 | 262,405 | ||||||
Intesa Sanpaolo SpA | 20,762 | 79,192 | ||||||
JPMorgan Chase & Co. | 15,904 | 1,730,037 |
See Accompanying Notes to the Financial Statements.
186 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Banks – (continued) | ||||||||
KBC Group NV | 210 | $ | 18,369 | |||||
KeyCorp | 4,074 | 81,154 | ||||||
Lloyds Banking Group plc | 189,084 | 168,397 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 1,876 | 22,813 | ||||||
National Australia Bank Ltd. | 6,006 | 131,249 | ||||||
Nordea Bank AB | 6,510 | 66,552 | ||||||
Raiffeisen Bank International AG* | 84 | 2,842 | ||||||
Royal Bank of Canada | 4,438 | 338,021 | ||||||
Royal Bank of Scotland Group plc* | 17,626 | 65,597 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 3,178 | 29,988 | ||||||
Societe Generale SA | 1,890 | 103,796 | ||||||
Standard Chartered plc | 11,116 | 117,433 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 4,200 | 178,325 | ||||||
Svenska Handelsbanken AB, Class A | 3,430 | 38,447 | ||||||
Swedbank AB, Class A | 1,806 | 39,444 | ||||||
Toronto-Dominion Bank (The) | 3,402 | 191,363 | ||||||
UniCredit SpA | 3,318 | 72,054 | ||||||
Unione di Banche Italiane SpA | 2,702 | 13,956 | ||||||
United Overseas Bank Ltd. | 2,800 | 63,738 | ||||||
Westpac Banking Corp. | 1,092 | 23,608 | ||||||
7,671,375 | ||||||||
Beverages – 3.1% | ||||||||
Anheuser-Busch InBev SA/NV | 672 | 67,161 | ||||||
Asahi Group Holdings Ltd. | 2,900 | 146,716 | ||||||
Brown-Forman Corp., Class B | 462 | 25,890 | ||||||
Carlsberg A/S, Class B | 168 | 18,836 | ||||||
Coca-Cola Amatil Ltd. | 1,666 | 11,683 | ||||||
Coca-Cola Co. (The) | 12,208 | 527,508 | ||||||
Coca-Cola European Partners plc | 532 | 20,854 | ||||||
Coca-Cola HBC AG, DI* | 238 | 8,012 | ||||||
Diageo plc | 7,868 | 280,570 | ||||||
Heineken Holding NV | 196 | 19,939 | ||||||
Heineken NV | 630 | 66,450 | ||||||
Kirin Holdings Co. Ltd. | 6,100 | 171,307 | ||||||
Molson Coors Brewing Co., Class B | 322 | 22,939 | ||||||
PepsiCo, Inc. | 4,438 | 447,972 | ||||||
Pernod Ricard SA | 574 | 95,392 | ||||||
Suntory Beverage & Food Ltd. | 1,400 | 68,960 |
Investments | Shares | Value | ||||||
Beverages – (continued) | ||||||||
Thai Beverage PCL | 18,200 | $ | 11,753 | |||||
2,011,942 | ||||||||
Biotechnology – 2.0% | ||||||||
AbbVie, Inc. | 3,164 | 305,484 | ||||||
Alnylam Pharmaceuticals, Inc.* | 252 | 23,822 | ||||||
Amgen, Inc. | 2,198 | 383,507 | ||||||
Biogen, Inc.* | 672 | 183,859 | ||||||
BioMarin Pharmaceutical, Inc.* | 546 | 45,596 | ||||||
CSL Ltd. | 1,218 | 156,630 | ||||||
Genmab A/S* | 56 | 11,370 | ||||||
Grifols SA | 42 | 1,185 | ||||||
Regeneron Pharmaceuticals, Inc.* | 140 | 42,515 | ||||||
Shire plc | 308 | 16,401 | ||||||
Vertex Pharmaceuticals, Inc.* | 854 | 130,799 | ||||||
1,301,168 | ||||||||
Building Products – 0.8% | ||||||||
Asahi Glass Co. Ltd. | 1,400 | 58,085 | ||||||
Assa Abloy AB, Class B | 2,352 | 49,553 | ||||||
Cie de Saint-Gobain | 1,582 | 83,135 | ||||||
Daikin Industries Ltd. | 900 | 105,319 | ||||||
Fortune Brands Home & Security, Inc. | 840 | 45,940 | ||||||
Geberit AG (Registered) | 112 | 48,040 | ||||||
Johnson Controls International plc | 3,486 | 118,071 | ||||||
Masco Corp. | 728 | 27,569 | ||||||
TOTO Ltd. | 400 | 22,701 | ||||||
558,413 | ||||||||
Capital Markets – 2.7% | ||||||||
3i Group plc | 4,060 | 52,655 | ||||||
Amundi SA(a) | 112 | 9,537 | ||||||
Azimut Holding SpA | 560 | 11,793 | ||||||
Bank of New York Mellon Corp. (The) | 4,494 | 244,968 | ||||||
Brookfield Asset Management, Inc., Class A | 168 | 6,669 | ||||||
Credit Suisse Group AG (Registered)* | 3,094 | 52,494 | ||||||
Deutsche Bank AG (Registered) | 1,050 | 14,419 | ||||||
Deutsche Boerse AG | 588 | 79,318 | ||||||
Euronext NV(a) | 84 | 6,028 | ||||||
Goldman Sachs Group, Inc. (The) | 658 | 156,821 | ||||||
Hargreaves Lansdown plc | 392 | 9,662 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 187 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
Hong Kong Exchanges & Clearing Ltd. | 2,200 | $ | 72,098 | |||||
IG Group Holdings plc | 210 | 2,401 | ||||||
Intercontinental Exchange, Inc. | 952 | 68,982 | ||||||
Investec plc | 2,394 | 19,039 | ||||||
Julius Baer Group Ltd.* | 406 | 24,297 | ||||||
Macquarie Group Ltd. | 868 | 71,215 | ||||||
Morgan Stanley | 3,682 | 190,065 | ||||||
MSCI, Inc. | 70 | 10,488 | ||||||
Natixis SA | 3,542 | 29,151 | ||||||
S&P Global, Inc. | 938 | 176,907 | ||||||
Schroders plc | 182 | 8,275 | ||||||
SEI Investments Co. | 378 | 23,901 | ||||||
St James’s Place plc | 1,190 | 18,628 | ||||||
State Street Corp. | 1,498 | 149,470 | ||||||
Thomson Reuters Corp. | 126 | 5,075 | ||||||
TP ICAP plc | 2,002 | 12,993 | ||||||
UBS Group AG (Registered)* | 13,762 | 233,143 | ||||||
1,760,492 | ||||||||
Chemicals – 2.2% | ||||||||
Air Liquide SA | 1,260 | 164,488 | ||||||
Air Products & Chemicals, Inc. | 518 | 84,066 | ||||||
Akzo Nobel NV | 884 | 79,997 | ||||||
Arkema SA | 196 | 25,694 | ||||||
BASF SE | 322 | 33,582 | ||||||
Celanese Corp., Series A | 280 | 30,428 | ||||||
Chr Hansen Holding A/S | 42 | 3,822 | ||||||
Eastman Chemical Co. | 154 | 15,720 | ||||||
Ecolab, Inc. | 672 | 97,285 | ||||||
EMS-Chemie Holding AG (Registered) | 28 | 17,396 | ||||||
Evonik Industries AG | 854 | 30,418 | ||||||
FMC Corp. | 252 | 20,092 | ||||||
Givaudan SA (Registered) | 14 | 31,383 | ||||||
Hexpol AB | 210 | 2,186 | ||||||
Incitec Pivot Ltd. | 3,836 | 11,003 | ||||||
International Flavors & Fragrances, Inc. | 28 | 3,955 | ||||||
Johnson Matthey plc | 728 | 33,029 | ||||||
K+S AG (Registered) | 182 | 5,368 | ||||||
Koninklijke DSM NV | 728 | 75,485 | ||||||
Linde AG* | 252 | 56,037 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
LyondellBasell Industries NV, Class A | 924 | $ | 97,694 | |||||
Mitsui Chemicals, Inc. | 1,400 | 40,174 | ||||||
Monsanto Co. | 1,162 | 145,680 | ||||||
Mosaic Co. (The) | 560 | 15,092 | ||||||
Novozymes A/S, Class B | 378 | 17,868 | ||||||
Orica Ltd. | 938 | 14,076 | ||||||
PPG Industries, Inc. | 966 | 102,280 | ||||||
Sherwin-Williams Co. (The) | 224 | 82,356 | ||||||
Sika AG | 4 | 29,215 | ||||||
Solvay SA | 98 | 13,687 | ||||||
Ube Industries Ltd. | 1,400 | 42,732 | ||||||
Umicore SA | 350 | 19,562 | ||||||
Yara International ASA | 322 | 13,626 | ||||||
1,455,476 | ||||||||
Commercial Services & Supplies – 0.5% | ||||||||
Aggreko plc | 1,134 | 11,439 | ||||||
Brambles Ltd. | 1,498 | 11,161 | ||||||
Cintas Corp. | 252 | 42,916 | ||||||
Dai Nippon Printing Co. Ltd. | 2,800 | 60,337 | ||||||
Edenred | 70 | 2,410 | ||||||
ISS A/S | 574 | 20,106 | ||||||
IWG plc | 1,722 | 5,877 | ||||||
Rentokil Initial plc | 784 | 3,315 | ||||||
Secom Co. Ltd. | 1,800 | 134,920 | ||||||
Securitas AB, Class B | 2,828 | 45,931 | ||||||
338,412 | ||||||||
Communications Equipment – 1.1% | ||||||||
Cisco Systems, Inc. | 12,894 | 571,075 | ||||||
Juniper Networks, Inc. | 266 | 6,541 | ||||||
Motorola Solutions, Inc. | 350 | 38,441 | ||||||
Nokia OYJ | 8,050 | 48,416 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 7,350 | 56,493 | ||||||
720,966 | ||||||||
Construction & Engineering – 0.3% | ||||||||
Balfour Beatty plc | 518 | 2,099 | ||||||
Bouygues SA | 700 | 35,733 | ||||||
Eiffage SA | 224 | 26,712 | ||||||
Ferrovial SA | 532 | 11,399 | ||||||
HOCHTIEF AG | 14 | 2,564 |
See Accompanying Notes to the Financial Statements.
188 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – (continued) | ||||||||
Skanska AB, Class B | 1,540 | $ | 30,173 | |||||
Vinci SA | 840 | 84,337 | ||||||
193,017 | ||||||||
Construction Materials – 0.3% | ||||||||
CRH plc | 1,078 | 38,435 | ||||||
Imerys SA | 42 | 3,836 | ||||||
LafargeHolcim Ltd. (Registered)* | 1,554 | 86,907 | ||||||
Taiheiyo Cement Corp. | 1,400 | 53,032 | ||||||
182,210 | ||||||||
Consumer Finance – 0.6% | ||||||||
American Express Co. | 1,848 | 182,490 | ||||||
Capital One Financial Corp. | 1,638 | 148,435 | ||||||
Synchrony Financial | 1,834 | 60,834 | ||||||
391,759 | ||||||||
Containers & Packaging – 0.2% | ||||||||
Amcor Ltd. | 630 | 6,529 | ||||||
Avery Dennison Corp. | 168 | 17,608 | ||||||
Ball Corp. | 994 | 39,850 | ||||||
BillerudKorsnas AB | 42 | 620 | ||||||
Crown Holdings, Inc.* | 266 | 13,257 | ||||||
DS Smith plc | 644 | 4,634 | ||||||
Huhtamaki OYJ | 238 | 9,731 | ||||||
International Paper Co. | 168 | 8,662 | ||||||
RPC Group plc | 1,708 | 18,604 | ||||||
Smurfit Kappa Group plc | 252 | 10,766 | ||||||
130,261 | ||||||||
Distributors – 0.0%(b) | ||||||||
Inchcape plc | 2,604 | 26,057 | ||||||
Diversified Financial Services – 0.2% | ||||||||
Eurazeo SA | 70 | 6,157 | ||||||
Kinnevik AB, Class B | 336 | 12,186 | ||||||
Standard Life Aberdeen plc | 9,198 | 46,279 | ||||||
Voya Financial, Inc. | 784 | 41,043 | ||||||
Wendel SA | 210 | 31,766 | ||||||
137,431 | ||||||||
Diversified Telecommunication Services – 1.8% | ||||||||
AT&T, Inc. | 10,458 | 341,976 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
CenturyLink, Inc. | 2,072 | $ | 38,498 | |||||
Deutsche Telekom AG (Registered) | 12,824 | 224,585 | ||||||
Elisa OYJ | 224 | 9,938 | ||||||
Iliad SA | 140 | 28,070 | ||||||
Koninklijke KPN NV | 19,824 | 61,722 | ||||||
Orange SA | 1,316 | 24,033 | ||||||
PCCW Ltd. | 42,000 | 26,062 | ||||||
Singapore Telecommunications Ltd. | 2,800 | 7,444 | ||||||
Swisscom AG (Registered) | 98 | 47,223 | ||||||
Telecom Italia SpA* | 16,618 | 16,428 | ||||||
Telenor ASA | 1,484 | 32,936 | ||||||
Telia Co. AB | 6,006 | 29,662 | ||||||
Telstra Corp. Ltd. | 60,354 | 144,875 | ||||||
Verizon Communications, Inc. | 2,562 | 126,435 | ||||||
1,159,887 | ||||||||
Electric Utilities – 1.5% | ||||||||
Alliant Energy Corp. | 252 | 10,823 | ||||||
Chubu Electric Power Co., Inc. | 4,200 | 65,768 | ||||||
Contact Energy Ltd. | 658 | 2,494 | ||||||
Duke Energy Corp. | 2,016 | 161,603 | ||||||
EDP – Energias de Portugal SA | 2,800 | 10,406 | ||||||
Electricite de France SA | 1,092 | 15,370 | ||||||
Endesa SA | 210 | 4,915 | ||||||
Enel SpA | 10,122 | 64,425 | ||||||
Eversource Energy | 1,442 | 86,881 | ||||||
Fortum OYJ | 2,282 | 52,688 | ||||||
Iberdrola SA | 17,080 | 132,401 | ||||||
NextEra Energy, Inc. | 1,120 | 183,579 | ||||||
Orsted A/S(a) | 210 | 13,863 | ||||||
PG&E Corp. | 1,610 | 74,221 | ||||||
Pinnacle West Capital Corp. | 252 | 20,286 | ||||||
SSE plc | 3,136 | 59,651 | ||||||
959,374 | ||||||||
Electrical Equipment – 1.4% | ||||||||
ABB Ltd. (Registered) | 6,160 | 144,619 | ||||||
Eaton Corp. plc | 1,736 | 130,252 | ||||||
Furukawa Electric Co. Ltd. | 300 | 14,805 | ||||||
Legrand SA | 588 | 45,822 | ||||||
Mitsubishi Electric Corp. | 8,400 | 129,003 | ||||||
Nidec Corp. | 1,600 | 250,619 | ||||||
Rockwell Automation, Inc. | 350 | 57,586 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 189 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electrical Equipment – (continued) | ||||||||
Schneider Electric SE* | 938 | $ | 85,314 | |||||
Siemens Gamesa Renewable Energy SA | 588 | 10,134 | ||||||
Vestas Wind Systems A/S | 462 | 29,983 | ||||||
898,137 | ||||||||
Electronic Equipment, Instruments & Components – 0.8% | ||||||||
AAC Technologies Holdings, Inc. | 1,000 | 14,564 | ||||||
Amphenol Corp., Class A | 448 | 37,502 | ||||||
Azbil Corp. | 200 | 9,322 | ||||||
CDW Corp. | 420 | 29,942 | ||||||
Electrocomponents plc | 3,402 | 28,536 | ||||||
Halma plc | 896 | 15,093 | ||||||
Hexagon AB, Class B | 1,484 | 86,226 | ||||||
Hirose Electric Co. Ltd. | 105 | 14,796 | ||||||
Hitachi High-Technologies Corp. | 500 | 23,349 | ||||||
Horiba Ltd. | 300 | 21,851 | ||||||
Ibiden Co. Ltd. | 1,400 | 23,170 | ||||||
Ingenico Group SA | 126 | 11,022 | ||||||
Murata Manufacturing Co. Ltd. | 400 | 50,628 | ||||||
Omron Corp. | 1,400 | 75,997 | ||||||
Spectris plc | 700 | 25,936 | ||||||
TDK Corp. | 600 | 51,816 | ||||||
519,750 | ||||||||
Energy Equipment & Services – 0.8% | ||||||||
Halliburton Co. | 3,416 | 181,014 | ||||||
John Wood Group plc | 1,764 | 13,815 | ||||||
Saipem SpA* | 2,646 | 10,147 | ||||||
SBM Offshore NV | 1,162 | 19,556 | ||||||
Schlumberger Ltd. | 4,284 | 293,711 | ||||||
WorleyParsons Ltd. | 770 | 9,451 | ||||||
527,694 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.1% | ||||||||
AvalonBay Communities, Inc. | 728 | 118,664 | ||||||
British Land Co. plc (The) | 1,456 | 13,485 | ||||||
CapitaLand Commercial Trust | 1,400 | 1,924 | ||||||
Dexus | 1,596 | 11,433 | ||||||
Digital Realty Trust, Inc. | 406 | 42,910 | ||||||
Gecina SA | 196 | 34,006 | ||||||
GPT Group (The) | 672 | 2,455 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Great Portland Estates plc | 1,303 | $ | 12,521 | |||||
Hammerson plc | 5,726 | 43,298 | ||||||
HCP, Inc. | 238 | 5,560 | ||||||
Host Hotels & Resorts, Inc. | 3,528 | 69,008 | ||||||
ICADE* | 126 | 12,536 | ||||||
Intu Properties plc | 3,724 | 10,017 | ||||||
Iron Mountain, Inc. | 1,078 | 36,587 | ||||||
Klepierre SA | 728 | 29,835 | ||||||
Link REIT | 4,500 | 39,907 | ||||||
Merlin Properties Socimi SA | 2,030 | 31,394 | ||||||
Mirvac Group | 8,190 | 13,848 | ||||||
Shaftesbury plc | 196 | 2,729 | ||||||
Stockland | 994 | 3,106 | ||||||
Suntec REIT | 2,800 | 4,145 | ||||||
Unibail-Rodamco SE | 392 | 94,202 | ||||||
Vicinity Centres | 1,302 | 2,398 | ||||||
Weyerhaeuser Co. | 2,478 | 91,141 | ||||||
727,109 | ||||||||
Food & Staples Retailing – 1.9% | ||||||||
Aeon Co. Ltd. | 9,800 | 195,910 | ||||||
Alimentation Couche-Tard, Inc., Class B | 616 | 26,674 | ||||||
Carrefour SA | 2,716 | 55,900 | ||||||
Casino Guichard Perrachon SA | 518 | 26,886 | ||||||
CVS Health Corp. | 490 | 34,217 | ||||||
Distribuidora Internacional de Alimentacion SA | 2,688 | 12,503 | ||||||
ICA Gruppen AB | 126 | 3,927 | ||||||
J Sainsbury plc | 6,244 | 26,575 | ||||||
Kesko OYJ, Class B | 154 | 9,061 | ||||||
Koninklijke Ahold Delhaize NV | 4,060 | 98,130 | ||||||
Kroger Co. (The) | 3,836 | 96,629 | ||||||
Loblaw Cos. Ltd. | 658 | 33,517 | ||||||
Metcash Ltd. | 812 | 2,207 | ||||||
Metro, Inc. | 238 | 7,564 | ||||||
Seven & i Holdings Co. Ltd. | 4,800 | 210,775 | ||||||
Sugi Holdings Co. Ltd. | 100 | 5,830 | ||||||
Sysco Corp. | 1,694 | 105,943 | ||||||
Tesco plc | 13,860 | 45,033 | ||||||
Walgreens Boots Alliance, Inc. | 70 | 4,652 | ||||||
Wesfarmers Ltd. | 4,452 | 147,093 |
See Accompanying Notes to the Financial Statements.
190 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
Woolworths Group Ltd. | 3,528 | $ | 74,194 | |||||
1,223,220 | ||||||||
Food Products – 2.2% | ||||||||
Archer-Daniels-Midland Co. | 1,148 | 52,096 | ||||||
Associated British Foods plc | 1,722 | 64,133 | ||||||
Barry Callebaut AG (Registered) | 14 | 25,273 | ||||||
Bunge Ltd. | 434 | 31,348 | ||||||
Campbell Soup Co. | 1,092 | 44,532 | ||||||
Conagra Brands, Inc. | 742 | 27,506 | ||||||
Danone SA | 2,240 | 181,570 | ||||||
General Mills, Inc. | 2,100 | 91,854 | ||||||
Hershey Co. (The) | 322 | 29,605 | ||||||
JM Smucker Co. (The) | 350 | 39,928 | ||||||
Kerry Group plc, Class A | 84 | 8,576 | ||||||
McCormick & Co., Inc. (Non-Voting) | 168 | 17,709 | ||||||
MEIJI Holdings Co. Ltd. | 1,100 | 88,261 | ||||||
Mondelez International, Inc., Class A | 5,082 | 200,739 | ||||||
Nestle SA (Registered) | 6,076 | 472,503 | ||||||
Nichirei Corp. | 1,400 | 40,494 | ||||||
Orkla ASA | 4,914 | 45,600 | ||||||
Wilmar International Ltd. | 2,800 | 6,894 | ||||||
1,468,621 | ||||||||
Gas Utilities – 0.3% | ||||||||
Gas Natural SDG SA | 1,764 | 44,565 | ||||||
Hong Kong & China Gas Co. Ltd. | 14,200 | 29,745 | ||||||
Italgas SpA | 294 | 1,906 | ||||||
Rubis SCA | 168 | 13,092 | ||||||
Tokyo Gas Co. Ltd. | 2,800 | 75,025 | ||||||
164,333 | ||||||||
Health Care Equipment & Supplies – 2.4% | ||||||||
Abbott Laboratories | 6,286 | 365,405 | ||||||
Ansell Ltd. | 938 | 18,466 | ||||||
Baxter International, Inc. | 1,498 | 104,111 | ||||||
Becton Dickinson and Co. | 1,008 | 233,725 | ||||||
Cochlear Ltd. | 112 | 16,406 | ||||||
Coloplast A/S, Class B | 238 | 20,224 | ||||||
Danaher Corp. | 952 | 95,505 | ||||||
Edwards Lifesciences Corp.* | 532 | 67,756 | ||||||
Elekta AB, Class B | 882 | 10,034 |
Investments | Shares | Value | ||||||
Health Care Equipment & Supplies – (continued) | ||||||||
Essilor International Cie Generale d’Optique SA | 266 | $ | 36,332 | |||||
Fisher & Paykel Healthcare Corp. Ltd. | 952 | 8,552 | ||||||
Hologic, Inc.* | 392 | 15,206 | ||||||
IDEXX Laboratories, Inc.* | 126 | 24,506 | ||||||
Koninklijke Philips NV | 3,374 | 143,532 | ||||||
Medtronic plc | 2,562 | 205,293 | ||||||
Olympus Corp. | 1,400 | 52,264 | ||||||
Sartorius AG (Preference) | 154 | 23,779 | ||||||
Smith & Nephew plc | 2,226 | 42,801 | ||||||
Sonova Holding AG (Registered) | 42 | 6,967 | ||||||
Sysmex Corp. | 900 | 79,616 | ||||||
Teleflex, Inc. | 42 | 11,251 | ||||||
Varian Medical Systems, Inc.* | 182 | 21,037 | ||||||
1,602,768 | ||||||||
Health Care Providers & Services – 0.8% | ||||||||
Anthem, Inc. | 1,050 | 247,790 | ||||||
Cigna Corp. | 126 | 21,649 | ||||||
Fresenius Medical Care AG & Co. KGaA | 476 | 48,470 | ||||||
Humana, Inc. | 280 | 82,370 | ||||||
Laboratory Corp. of America Holdings* | 364 | 62,153 | ||||||
Orpea | 70 | 8,995 | ||||||
Ramsay Health Care Ltd. | 210 | 10,255 | ||||||
Ryman Healthcare Ltd. | 280 | 2,091 | ||||||
Sonic Healthcare Ltd. | 1,834 | 32,699 | ||||||
516,472 | ||||||||
Hotels, Restaurants & Leisure – 2.4% | ||||||||
Accor SA | 308 | 17,442 | ||||||
Aristocrat Leisure Ltd. | 952 | 19,273 | ||||||
Carnival Corp. | 798 | 50,322 | ||||||
Carnival plc | 770 | 50,111 | ||||||
Compass Group plc | 5,068 | 108,894 | ||||||
Darden Restaurants, Inc. | 280 | 26,001 | ||||||
Elior Group SA(a) | 649 | 13,275 | ||||||
Hilton Worldwide Holdings, Inc. | 728 | 57,396 | ||||||
InterContinental Hotels Group plc | 448 | 28,317 | ||||||
Las Vegas Sands Corp. | 700 | 51,331 | ||||||
Marriott International, Inc., Class A | 1,358 | 185,611 | ||||||
McDonald’s Corp. | 1,288 | 215,663 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 191 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||
Merlin Entertainments plc(a) | 3,738 | $ | 18,936 | |||||
Oriental Land Co. Ltd. | 1,000 | 99,749 | ||||||
Restaurant Brands International, Inc. | 490 | 26,706 | ||||||
Royal Caribbean Cruises Ltd. | 714 | 77,248 | ||||||
Sands China Ltd. | 5,600 | 32,644 | ||||||
Sodexo SA | 238 | 23,608 | ||||||
Star Entertainment Grp Ltd. (The) | 1,092 | 4,352 | ||||||
Starbucks Corp. | 5,236 | 301,437 | ||||||
Tabcorp Holdings Ltd. | 1,708 | 5,647 | ||||||
TUI AG, DI | 1,204 | 27,288 | ||||||
Whitbread plc | 686 | 40,450 | ||||||
William Hill plc | 3,052 | 12,308 | ||||||
Wyndham Worldwide Corp. | 378 | 43,171 | ||||||
Yum! Brands, Inc. | 714 | 62,189 | ||||||
1,599,369 | ||||||||
Household Durables – 1.0% | ||||||||
Barratt Developments plc | 392 | 3,013 | ||||||
Berkeley Group Holdings plc | 224 | 12,563 | ||||||
Electrolux AB, Series B | 252 | 6,667 | ||||||
Husqvarna AB, Class B | 490 | 4,732 | ||||||
Panasonic Corp. | 11,200 | 167,040 | ||||||
SEB SA | 84 | 16,127 | ||||||
Sony Corp. | 8,400 | 414,531 | ||||||
Taylor Wimpey plc | 18,802 | 49,657 | ||||||
Techtronic Industries Co. Ltd. | 2,000 | 11,824 | ||||||
686,154 | ||||||||
Household Products – 1.7% | ||||||||
Church & Dwight Co., Inc. | 784 | 36,221 | ||||||
Clorox Co. (The) | 434 | 50,865 | ||||||
Colgate-Palmolive Co. | 252 | 16,438 | ||||||
Henkel AG & Co. KGaA (Preference) | 336 | 42,788 | ||||||
Kimberly-Clark Corp. | 1,162 | 120,313 | ||||||
Procter & Gamble Co. (The) | 8,736 | 631,962 | ||||||
Reckitt Benckiser Group plc | 2,758 | 216,604 | ||||||
1,115,191 | ||||||||
Independent Power and Renewable Electricity Producers – 0.0%(b) | ||||||||
AES Corp. | 2,184 | 26,732 |
Investments | Shares | Value | ||||||
Industrial Conglomerates – 1.8% | ||||||||
3M Co. | 2,352 | $ | 457,205 | |||||
CK Hutchison Holdings Ltd. | 6,000 | 71,175 | ||||||
General Electric Co. | 40,194 | 565,530 | ||||||
Keppel Corp. Ltd. | 2,800 | 17,320 | ||||||
Sembcorp Industries Ltd. | 7,000 | 16,230 | ||||||
Siemens AG (Registered) | 308 | 39,311 | ||||||
Smiths Group plc | 1,568 | 34,501 | ||||||
1,201,272 | ||||||||
Insurance – 2.9% | ||||||||
Admiral Group plc | 406 | 11,145 | ||||||
Aegon NV | 3,262 | 24,010 | ||||||
Aflac, Inc. | 3,332 | 151,839 | ||||||
Ageas | 420 | 22,556 | ||||||
Alleghany Corp. | 42 | 24,136 | ||||||
Aon plc | 854 | 121,669 | ||||||
Arthur J Gallagher & Co. | 560 | 39,194 | ||||||
Assicurazioni Generali SpA | 3,710 | 75,036 | ||||||
Aviva plc | 6,958 | 50,697 | ||||||
AXA SA | 5,502 | 157,679 | ||||||
Chubb Ltd. | 1,974 | 267,813 | ||||||
CNP Assurances* | 1,498 | 38,442 | ||||||
Direct Line Insurance Group plc | 1,274 | 6,568 | ||||||
Great-West Lifeco, Inc. | 42 | 1,121 | ||||||
Hannover Rueck SE | 70 | 9,861 | ||||||
Hiscox Ltd. | 868 | 17,802 | ||||||
Insurance Australia Group Ltd. | 6,972 | 41,576 | ||||||
Legal & General Group plc | 6,734 | 25,043 | ||||||
Mapfre SA | 434 | 1,512 | ||||||
Medibank Pvt Ltd. | 3,892 | 8,608 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) | 350 | 80,324 | ||||||
NN Group NV | 1,400 | 67,135 | ||||||
Old Mutual plc | 9,254 | 32,069 | ||||||
Phoenix Group Holdings | 1,624 | 17,604 | ||||||
Poste Italiane SpA(a) | 1,764 | 17,276 | ||||||
Power Corp. of Canada | 98 | 2,332 | ||||||
Power Financial Corp. | 112 | 2,910 | ||||||
Principal Financial Group, Inc. | 1,204 | 71,301 | ||||||
Prudential plc | 8,288 | 213,983 | ||||||
Reinsurance Group of America, Inc. | 238 | 35,557 | ||||||
RSA Insurance Group plc | 1,820 | 16,480 |
See Accompanying Notes to the Financial Statements.
192 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Sampo OYJ, Class A | 700 | $ | 37,847 | |||||
Storebrand ASA | 3,234 | 27,734 | ||||||
Swiss Life Holding AG (Registered)* | 14 | 4,929 | ||||||
Swiss Re AG | 770 | 73,632 | ||||||
Tryg A/S | 238 | 5,654 | ||||||
XL Group Ltd. | 336 | 18,678 | ||||||
Zurich Insurance Group AG* | 378 | 121,278 | ||||||
1,943,030 | ||||||||
Internet & Direct Marketing Retail – 0.3% | ||||||||
Booking Holdings, Inc.* | 98 | 213,444 | ||||||
Ocado Group plc* | 546 | 4,049 | ||||||
Zalando SE* (a) | 210 | 10,847 | ||||||
228,340 | ||||||||
Internet Software & Services – 3.1% | ||||||||
Akamai Technologies, Inc.* | 546 | 39,121 | ||||||
Alphabet, Inc., Class C* | 1,372 | 1,395,777 | ||||||
Auto Trader Group plc(a) | 3,976 | 19,331 | ||||||
carsales.com Ltd. | 616 | 6,668 | ||||||
Facebook, Inc., Class A* | 3,542 | 609,224 | ||||||
2,070,121 | ||||||||
IT Services – 2.0% | ||||||||
Accenture plc, Class A | 2,058 | 311,170 | ||||||
Altran Technologies SA | 1,480 | 22,888 | ||||||
Amadeus IT Group SA | 812 | 59,550 | ||||||
Amdocs Ltd. | 336 | 22,596 | ||||||
Atos SE | 252 | 34,070 | ||||||
Capgemini SE | 462 | 63,633 | ||||||
Cognizant Technology Solutions Corp., Class A | 896 | 73,311 | ||||||
International Business Machines Corp. | 4,326 | 627,097 | ||||||
Link Administration Holdings Ltd. | 2,968 | 18,595 | ||||||
Nomura Research Institute Ltd. | 1,000 | 51,634 | ||||||
Sopra Steria Group | 70 | 14,961 | ||||||
Western Union Co. (The) | 1,414 | 27,926 | ||||||
Wirecard AG | 112 | 15,305 | ||||||
1,342,736 | ||||||||
Leisure Products – 0.2% | ||||||||
Hasbro, Inc. | 476 | 41,931 |
Investments | Shares | Value | ||||||
Leisure Products – (continued) | ||||||||
Yamaha Corp. | 1,400 | $ | 67,681 | |||||
109,612 | ||||||||
Life Sciences Tools & Services – 0.3% | ||||||||
Eurofins Scientific SE | 14 | 7,574 | ||||||
Lonza Group AG (Registered)* | 14 | 3,454 | ||||||
Thermo Fisher Scientific, Inc. | 994 | 209,088 | ||||||
220,116 | ||||||||
Machinery – 1.7% | ||||||||
Alstom SA | 42 | 1,914 | ||||||
Atlas Copco AB, Class A | 1,288 | 50,692 | ||||||
CNH Industrial NV | 1,918 | 23,729 | ||||||
Cummins, Inc. | 448 | 71,617 | ||||||
Deere & Co. | 560 | 75,785 | ||||||
Dover Corp. | 294 | 27,254 | ||||||
FANUC Corp. | 900 | 193,777 | ||||||
Georg Fischer AG (Registered) | 14 | 17,509 | ||||||
Hitachi Construction Machinery Co. Ltd. | 700 | 25,492 | ||||||
IHI Corp. | 800 | 26,246 | ||||||
Illinois Tool Works, Inc. | 532 | 75,555 | ||||||
Ingersoll-Rand plc | 560 | 46,978 | ||||||
KION Group AG | 154 | 12,894 | ||||||
Komatsu Ltd. | 2,800 | 95,956 | ||||||
Kubota Corp. | 7,000 | 118,314 | ||||||
Metso OYJ | 70 | 2,503 | ||||||
Nabtesco Corp. | 700 | 25,300 | ||||||
Pentair plc | 280 | 18,838 | ||||||
Rotork plc | 2,968 | 13,449 | ||||||
Sandvik AB | 728 | 12,490 | ||||||
SKF AB, Class B | 70 | 1,426 | ||||||
Snap-on, Inc. | 154 | 22,369 | ||||||
Spirax-Sarco Engineering plc | 84 | 6,670 | ||||||
Stanley Black & Decker, Inc. | 378 | 53,521 | ||||||
Trelleborg AB, Class B | 2,730 | 64,105 | ||||||
Volvo AB, Class B | 560 | 9,556 | ||||||
Wartsila OYJ Abp | 826 | 17,614 | ||||||
Xylem, Inc. | 364 | 26,536 | ||||||
1,138,089 | ||||||||
Marine – 0.1% | ||||||||
AP Moller – Maersk A/S, Class B | 28 | 45,206 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 193 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Marine – (continued) | ||||||||
Nippon Yusen KK | 2,100 | $ | 44,792 | |||||
89,998 | ||||||||
Media – 1.1% | ||||||||
Comcast Corp., Class A | 2,226 | 69,874 | ||||||
Eutelsat Communications SA | 476 | 10,317 | ||||||
Interpublic Group of Cos., Inc. (The) | 1,778 | 41,943 | ||||||
JCDecaux SA | 672 | 24,049 | ||||||
Lagardere SCA | 546 | 15,621 | ||||||
Pearson plc | 3,234 | 37,140 | ||||||
Publicis Groupe SA | 826 | 61,874 | ||||||
REA Group Ltd. | 84 | 5,127 | ||||||
Schibsted ASA, Class A | 84 | 2,460 | ||||||
SES SA, FDR | 1,120 | 17,321 | ||||||
Shaw Communications, Inc., Class B | 1,871 | 38,516 | ||||||
Singapore Press Holdings Ltd. | 12,600 | 25,884 | ||||||
Sky plc | 1,708 | 32,418 | ||||||
Telenet Group Holding NV* | 140 | 8,214 | ||||||
Walt Disney Co. (The) | 2,226 | 223,335 | ||||||
WPP plc | 4,634 | 79,624 | ||||||
693,717 | ||||||||
Metals & Mining – 1.9% | ||||||||
Agnico Eagle Mines Ltd. | 420 | 17,702 | ||||||
Alumina Ltd. | 3,304 | 6,584 | ||||||
Anglo American plc | 1,456 | 34,281 | ||||||
ArcelorMittal | 1,414 | 47,997 | ||||||
BHP Billiton Ltd. | 10,906 | 254,793 | ||||||
BHP Billiton plc | 7,812 | 166,132 | ||||||
BlueScope Steel Ltd. | 2,674 | 33,325 | ||||||
Boliden AB | 84 | 2,928 | ||||||
Centamin plc | 210 | 453 | ||||||
Dowa Holdings Co. Ltd. | 400 | 15,097 | ||||||
Fortescue Metals Group Ltd. | 1,274 | 4,385 | ||||||
Glencore plc* | 32,354 | 156,282 | ||||||
Mitsubishi Materials Corp. | 1,400 | 42,733 | ||||||
Newmont Mining Corp. | 1,610 | 63,257 | ||||||
Norsk Hydro ASA | 2,590 | 16,184 | ||||||
Outokumpu OYJ | 574 | 3,731 | ||||||
OZ Minerals Ltd. | 784 | 5,474 | ||||||
Randgold Resources Ltd. | 42 | 3,395 | ||||||
Rio Tinto Ltd. | 1,148 | 69,204 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Rio Tinto plc | 4,032 | $ | 219,140 | |||||
South32 Ltd. | 18,802 | 52,797 | ||||||
Teck Resources Ltd., Class B | 574 | 14,431 | ||||||
voestalpine AG | 42 | 2,218 | ||||||
1,232,523 | ||||||||
Multiline Retail – 0.5% | ||||||||
Canadian Tire Corp. Ltd., Class A | 182 | 24,842 | ||||||
Dollar General Corp. | 448 | 43,246 | ||||||
Kohl’s Corp. | 364 | 22,612 | ||||||
Marui Group Co. Ltd. | 2,800 | 58,213 | ||||||
Next plc | 420 | 30,405 | ||||||
Target Corp. | 2,044 | 148,394 | ||||||
327,712 | ||||||||
Multi-Utilities – 0.6% | ||||||||
AGL Energy Ltd. | 2,898 | 47,536 | ||||||
CenterPoint Energy, Inc. | 2,506 | 63,477 | ||||||
Centrica plc | 13,566 | 28,738 | ||||||
E.ON SE | 3,976 | 43,580 | ||||||
Engie SA | 1,400 | 24,611 | ||||||
Innogy SE(a) | 70 | 3,090 | ||||||
National Grid plc | 1,400 | 16,252 | ||||||
RWE AG | 490 | 11,766 | ||||||
Sempra Energy | 168 | 18,782 | ||||||
Suez | 154 | 2,225 | ||||||
Veolia Environnement SA* | 896 | 21,277 | ||||||
WEC Energy Group, Inc. | 1,582 | 101,691 | ||||||
383,025 | ||||||||
Oil, Gas & Consumable Fuels – 4.4% | ||||||||
Aker BP ASA | 70 | 2,308 | ||||||
BP plc | 11,648 | 86,313 | ||||||
Caltex Australia Ltd. | 546 | 12,785 | ||||||
Canadian Natural Resources Ltd. | 28 | 1,012 | ||||||
Cenovus Energy, Inc. | 2,758 | 27,667 | ||||||
Chevron Corp. | 4,144 | 518,456 | ||||||
Enagas SA | 1,106 | 32,257 | ||||||
Enbridge, Inc. | 252 | 7,645 | ||||||
Eni SpA | 5,838 | 114,266 | ||||||
Exxon Mobil Corp. | 7,084 | 550,781 | ||||||
Galp Energia SGPS SA | 2,870 | 55,186 | ||||||
Hess Corp. | 924 | 52,659 |
See Accompanying Notes to the Financial Statements.
194 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Inpex Corp. | 9,800 | $ | 125,607 | |||||
JXTG Holdings, Inc. | 21,000 | 137,102 | ||||||
Koninklijke Vopak NV | 266 | 13,144 | ||||||
Neste OYJ | 364 | 30,741 | ||||||
Oil Search Ltd. | 9,282 | 54,931 | ||||||
OMV AG | 336 | 20,907 | ||||||
Royal Dutch Shell plc, Class A | 8,218 | 288,040 | ||||||
Santos Ltd.* | 8,078 | 37,440 | ||||||
Showa Shell Sekiyu KK | 1,400 | 19,792 | ||||||
Snam SpA | 10,752 | 51,767 | ||||||
Statoil ASA | 3,887 | 99,709 | ||||||
Suncor Energy, Inc. | 4,550 | 174,270 | ||||||
TOTAL SA | 4,952 | 313,091 | ||||||
Woodside Petroleum Ltd. | 4,298 | 104,533 | ||||||
2,932,409 | ||||||||
Paper & Forest Products – 0.2% | ||||||||
Mondi plc | 938 | 26,175 | ||||||
Stora Enso OYJ, Class R | 1,316 | 26,132 | ||||||
Svenska Cellulosa AB SCA, Class B | 3,850 | 42,855 | ||||||
UPM-Kymmene OYJ | 980 | 35,142 | ||||||
130,304 | ||||||||
Personal Products – 1.6% | ||||||||
Beiersdorf AG | 490 | 55,602 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 770 | 114,029 | ||||||
L’Oreal SA | 910 | 218,628 | ||||||
Shiseido Co. Ltd. | 4,200 | 272,976 | ||||||
Unilever NV, CVA | 6,342 | 363,581 | ||||||
Unilever plc | 1,050 | 58,970 | ||||||
1,083,786 | ||||||||
Pharmaceuticals – 5.5% | ||||||||
Allergan plc | 140 | 21,511 | ||||||
Astellas Pharma, Inc. | 15,400 | 225,951 | ||||||
AstraZeneca plc | 4,564 | 320,786 | ||||||
Bayer AG (Registered) | 294 | 35,265 | ||||||
Bristol-Myers Squibb Co. | 5,082 | 264,925 | ||||||
Eli Lilly & Co. | 3,388 | 274,665 | ||||||
GlaxoSmithKline plc | 5,306 | 106,802 | ||||||
H Lundbeck A/S | 196 | 11,410 | ||||||
Ipsen SA | 42 | 6,825 |
Investments | Shares | Value | ||||||
Pharmaceuticals – (continued) | ||||||||
Merck & Co., Inc. | 8,526 | $ | 501,926 | |||||
Merck KGaA | 812 | 79,682 | ||||||
Novartis AG (Registered) | 7,280 | 564,073 | ||||||
Novo Nordisk A/S, Class B | 2,758 | 130,506 | ||||||
Orion OYJ, Class B | 378 | 11,500 | ||||||
Perrigo Co. plc | 28 | 2,188 | ||||||
Pfizer, Inc. | 15,260 | 558,669 | ||||||
Roche Holding AG | 1,610 | 359,196 | ||||||
Sanofi | 1,148 | 91,252 | ||||||
UCB SA | 294 | 22,293 | ||||||
Vifor Pharma AG | 182 | 28,911 | ||||||
3,618,336 | ||||||||
Professional Services – 0.5% | ||||||||
Adecco Group AG (Registered) | 56 | 3,730 | ||||||
Bureau Veritas SA | 994 | 26,001 | ||||||
Experian plc | 2,646 | 60,753 | ||||||
Randstad NV | 280 | 18,058 | ||||||
RELX NV | 4,200 | 89,386 | ||||||
RELX plc | 2,604 | 55,754 | ||||||
SEEK Ltd. | 518 | 7,598 | ||||||
SGS SA (Registered) | 14 | 34,183 | ||||||
Teleperformance | 28 | 4,496 | ||||||
Wolters Kluwer NV | 476 | 25,782 | ||||||
325,741 | ||||||||
Real Estate Management & Development – 0.6% | ||||||||
CapitaLand Ltd. | 7,000 | 19,878 | ||||||
Castellum AB | 784 | 12,733 | ||||||
CBRE Group, Inc., Class A* | 1,344 | 60,897 | ||||||
City Developments Ltd. | 1,400 | 13,397 | ||||||
CK Asset Holdings Ltd. | 8,500 | 73,701 | ||||||
Daiwa House Industry Co. Ltd. | 1,400 | 51,305 | ||||||
Fabege AB | 5,124 | 59,369 | ||||||
Fullshare Holdings Ltd.* | 5,000 | 2,746 | ||||||
Hulic Co. Ltd. | 1,400 | 15,059 | ||||||
Kerry Properties Ltd. | 7,000 | 33,625 | ||||||
Sun Hung Kai Properties Ltd. | 3,000 | 48,469 | ||||||
Tokyu Fudosan Holdings Corp. | 1,400 | 11,029 | ||||||
402,208 | ||||||||
Road & Rail – 0.5% | ||||||||
Aurizon Holdings Ltd. | 8,134 | 27,630 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 195 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Road & Rail – (continued) | ||||||||
Canadian National Railway Co. | 182 | $ | 14,079 | |||||
DSV A/S | 462 | 36,733 | ||||||
Kintetsu Group Holdings Co. Ltd. | 2,800 | 113,996 | ||||||
Nippon Express Co. Ltd. | 800 | 60,461 | ||||||
Tokyu Corp. | 5,600 | 94,216 | ||||||
347,115 | ||||||||
Semiconductors & Semiconductor Equipment – 3.6% | ||||||||
ams AG* | 140 | 11,651 | ||||||
ASM International NV | 266 | 15,973 | ||||||
ASM Pacific Technology Ltd. | 1,400 | 19,265 | ||||||
ASML Holding NV | 1,134 | 215,791 | ||||||
Infineon Technologies AG | 2,030 | 52,192 | ||||||
Intel Corp. | 17,192 | 887,451 | ||||||
KLA-Tencor Corp. | 266 | 27,063 | ||||||
Maxim Integrated Products, Inc. | 588 | 32,046 | ||||||
NVIDIA Corp. | 2,198 | 494,330 | ||||||
ON Semiconductor Corp.* | 1,190 | 26,275 | ||||||
QUALCOMM, Inc. | 3,374 | 172,108 | ||||||
STMicroelectronics NV | 1,260 | 27,600 | ||||||
Texas Instruments, Inc. | 3,584 | 363,525 | ||||||
Xilinx, Inc. | 154 | 9,893 | ||||||
2,355,163 | ||||||||
Software – 6.5% | ||||||||
Activision Blizzard, Inc. | 1,610 | 106,824 | ||||||
Adobe Systems, Inc.* | 1,162 | 257,499 | ||||||
Autodesk, Inc.* | 602 | 75,792 | ||||||
CA, Inc. | 798 | 27,770 | ||||||
Dassault Systemes SE | 364 | 47,167 | ||||||
Gemalto NV | 196 | 11,812 | ||||||
Intuit, Inc. | 728 | 134,527 | ||||||
Microsoft Corp. | 34,314 | 3,209,044 | ||||||
Oracle Corp. | 4,746 | 216,750 | ||||||
SAP SE | 602 | 67,221 | ||||||
SimCorp A/S | 336 | 24,475 | ||||||
Snap, Inc., Class A* | 1,680 | 24,074 | ||||||
Symantec Corp. | 1,904 | 52,912 | ||||||
Temenos Group AG (Registered)* | 84 | 10,633 | ||||||
Ubisoft Entertainment SA* | 378 | 36,198 | ||||||
4,302,698 |
Investments | Shares | Value | ||||||
Specialty Retail – 1.1% | ||||||||
AutoZone, Inc.* | 70 | $ | 43,716 | |||||
Best Buy Co., Inc. | 588 | 45,000 | ||||||
Dixons Carphone plc | 6,426 | 17,967 | ||||||
Dufry AG (Registered)* | 14 | 1,992 | ||||||
Hennes & Mauritz AB, Class B | 2,114 | 36,226 | ||||||
Industria de Diseno Textil SA | 2,016 | 62,793 | ||||||
JB Hi-Fi Ltd. | 644 | 12,493 | ||||||
Kingfisher plc | 7,168 | 29,994 | ||||||
Lowe’s Cos., Inc. | 2,688 | 221,572 | ||||||
Tiffany & Co. | 322 | 33,111 | ||||||
TJX Cos., Inc. (The) | 2,338 | 198,379 | ||||||
Ulta Beauty, Inc.* | 168 | 42,153 | ||||||
745,396 | ||||||||
Technology Hardware, Storage & Peripherals – 5.4% | ||||||||
Apple, Inc. | 19,054 | 3,148,864 | ||||||
Hewlett Packard Enterprise Co. | 3,052 | 52,037 | ||||||
HP, Inc. | 4,144 | 89,054 | ||||||
NEC Corp. | 1,700 | 46,685 | ||||||
NetApp, Inc. | 336 | 22,371 | ||||||
Ricoh Co. Ltd. | 4,200 | 41,108 | ||||||
Seiko Epson Corp. | 3,400 | 63,852 | ||||||
Western Digital Corp. | 728 | 57,359 | ||||||
Xerox Corp. | 462 | 14,530 | ||||||
3,535,860 | ||||||||
Textiles, Apparel & Luxury Goods – 1.1% | ||||||||
adidas AG | 378 | 93,121 | ||||||
Burberry Group plc | 448 | 11,252 | ||||||
Cie Financiere Richemont SA (Registered) | 1,204 | 115,012 | ||||||
Hanesbrands, Inc. | 882 | 16,291 | ||||||
Hermes International | 42 | 27,189 | ||||||
HUGO BOSS AG | 70 | 6,580 | ||||||
Kering SA | 210 | 121,685 | ||||||
Li & Fung Ltd. | 28,000 | 14,164 | ||||||
Luxottica Group SpA | 504 | 31,518 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 336 | 117,443 | ||||||
Moncler SpA | 728 | 32,931 | ||||||
Pandora A/S | 224 | 24,969 | ||||||
Shenzhou International Group Holdings Ltd. | 1,000 | 10,983 |
See Accompanying Notes to the Financial Statements.
196 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – (continued) | ||||||||
Swatch Group AG (The) | 56 | $ | 27,069 | |||||
Tapestry, Inc. | 728 | 39,145 | ||||||
VF Corp. | 434 | 35,098 | ||||||
724,450 | ||||||||
Tobacco – 0.6% | ||||||||
Altria Group, Inc. | 196 | 10,998 | ||||||
British American Tobacco plc | 560 | 30,845 | ||||||
Japan Tobacco, Inc. | 900 | 24,152 | ||||||
Philip Morris International, Inc. | 3,206 | 262,892 | ||||||
Swedish Match AB | 1,134 | 51,103 | ||||||
379,990 | ||||||||
Trading Companies & Distributors – 1.1% | ||||||||
Ashtead Group plc | 448 | 12,545 | ||||||
Brenntag AG | 196 | 11,253 | ||||||
Bunzl plc | 1,288 | 37,450 | ||||||
Fastenal Co. | 728 | 36,393 | ||||||
Ferguson plc | 700 | 53,799 | ||||||
HD Supply Holdings, Inc.* | 70 | 2,710 | ||||||
ITOCHU Corp. | 8,400 | 168,422 | ||||||
Marubeni Corp. | 14,000 | 105,449 | ||||||
Rexel SA | 616 | 9,564 | ||||||
Sojitz Corp. | 9,800 | 32,331 | ||||||
Sumitomo Corp. | 7,000 | 125,990 | ||||||
Toyota Tsusho Corp. | 2,800 | 100,690 | ||||||
696,596 | ||||||||
Transportation Infrastructure – 0.3% | ||||||||
Abertis Infraestructuras SA | 1,806 | 39,843 | ||||||
Aeroports de Paris | 154 | 33,938 | ||||||
Atlantia SpA | 490 | 16,280 | ||||||
Auckland International Airport Ltd. | 3,668 | 16,489 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 42 | 4,080 | ||||||
Getlink | 1,414 | 19,971 | ||||||
Sydney Airport | 1,148 | 6,179 | ||||||
Transurban Group | 9,380 | 82,134 | ||||||
218,914 | ||||||||
Water Utilities – 0.1% | ||||||||
American Water Works Co., Inc. | 112 | 9,697 |
Investments | Shares | Value | ||||||
Water Utilities – (continued) | ||||||||
Severn Trent plc | 952 | $ | 25,438 | |||||
United Utilities Group plc | 588 | 6,019 | ||||||
41,154 | ||||||||
Wireless Telecommunication Services – 0.1% | ||||||||
Freenet AG | 56 | 1,781 | ||||||
Tele2 AB, Class B | 224 | 2,921 | ||||||
Vodafone Group plc | 24,150 | 70,384 | ||||||
75,086 | ||||||||
Total Common Stocks (Cost $62,603,184) | 65,075,588 | |||||||
Total Investments – 98.6% (Cost $62,603,184) | 65,075,588 | |||||||
Other Assets Less Liabilities – 1.4% | 949,439 | |||||||
NET ASSETS – 100.0% | $ | 66,025,027 |
* | 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. |
Percentages shown are based on Net Assets.
Abbreviations
CVA – Dutch Certification
DI – Depositary Interest
FDR – Fiduciary Depositary Receipt
OYJ – Public Limited Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SCA – Limited partnership with share capital
As of April 30, 2018, 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 | $ | 4,059,037 | ||
Aggregate gross unrealized depreciation | (1,604,195 | ) | ||
Net unrealized appreciation | $ | 2,454,842 | ||
Federal income tax cost | $ | 62,612,493 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 197 |
Table of Contents
FlexShares® STOXX® Global ESG Impact Index Fund (cont.)
Futures Contracts
FlexShares® STOXX® Global ESG Impact Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI EAFE E-Mini Index | 4 | 06/15/2018 | USD | $ | 405,300 | $ | 2,687 | |||||||||||||
S&P 500 E-Mini Index | 4 | 06/15/2018 | USD | 529,400 | (10,940 | ) | ||||||||||||||
$ | (8,253 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
FlexShares® STOXX® Global ESG Impact Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 3.7 | % | ||
Austria | 0.1 | |||
Belgium | 0.3 | |||
Canada | 1.9 | |||
Denmark | 0.7 | |||
Finland | 0.5 | |||
France | 5.5 | |||
Germany | 2.5 | |||
Hong Kong | 0.8 | |||
Ireland | 0.1 | |||
Italy | 1.2 | |||
Japan | 9.5 | |||
Luxembourg | 0.1 | |||
Netherlands | 2.6 | |||
New Zealand | 0.0 | † | ||
Norway | 0.4 | |||
Portugal | 0.1 | |||
Singapore | 0.3 | |||
Spain | 1.2 | |||
Sweden | 1.3 | |||
Switzerland | 3.9 | |||
United Kingdom | 7.4 | |||
United States | 54.5 | |||
Other1 | 1.4 | |||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes any non-equity securities and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
198 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Morningstar Global Upstream Natural Resources Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.1% | ||||||||
Building Products – 0.1% | ||||||||
Universal Forest Products, Inc. | 188,043 | $ | 5,994,811 | |||||
Chemicals – 15.4% | ||||||||
CF Industries Holdings, Inc.(a) | 1,497,746 | 58,112,545 | ||||||
FMC Corp. | 828,049 | 66,020,347 | ||||||
Incitec Pivot Ltd. | 10,899,896 | 31,265,588 | ||||||
Israel Chemicals Ltd. | 3,147,246 | 14,153,378 | ||||||
K+S AG (Registered) | 1,200,836 | 35,415,250 | ||||||
Monsanto Co. | 2,183,938 | 273,800,308 | ||||||
Mosaic Co. (The) | 2,193,835 | 59,123,853 | ||||||
Nufarm Ltd.(a) | 1,567,025 | 10,787,763 | ||||||
Nutrien Ltd. | 4,064,368 | 185,313,241 | ||||||
Sasol Ltd. | 597,119 | 21,427,167 | ||||||
Scotts Miracle-Gro Co. | 260,621 | 21,782,703 | ||||||
Sirius Minerals plc* (a) | 28,519,855 | 12,177,365 | ||||||
UPL Ltd. | 2,454,456 | 26,841,245 | ||||||
Yara International ASA | 1,148,052 | 48,581,297 | ||||||
864,802,050 | ||||||||
Diversified Financial Services – 0.1% | ||||||||
Metro Pacific Investments Corp. | 46,844,000 | 4,616,555 | ||||||
Equity Real Estate Investment Trusts (REITs) – 1.8% | ||||||||
Rayonier, Inc.(a) | 382,684 | 14,232,018 | ||||||
Weyerhaeuser Co. | 2,338,991 | 86,028,089 | ||||||
100,260,107 | ||||||||
Food Products – 11.8% | ||||||||
a2 Milk Co. Ltd.* | 4,978,191 | 42,617,742 | ||||||
Archer-Daniels-Midland Co. | 3,513,435 | 159,439,680 | ||||||
Bunge Ltd. | 890,730 | 64,337,428 | ||||||
Charoen Pokphand Foods PCL, NVDR | 26,062,100 | 20,149,406 | ||||||
Charoen Pokphand Indonesia Tbk. PT | 49,814,900 | 13,176,556 | ||||||
CJ CheilJedang Corp. | 56,083 | 18,010,832 | ||||||
Fresh Del Monte Produce, | 217,734 | 10,701,626 |
Investments | Shares | Value | ||||||
Food Products – (continued) | ||||||||
Golden Agri-Resources Ltd.(a) | 42,887,000 | $ | 11,174,816 | |||||
IOI Corp. Bhd. | 17,814,600 | 21,748,932 | ||||||
Kuala Lumpur Kepong Bhd. | 2,639,200 | 17,139,497 | ||||||
Marine Harvest ASA | 2,649,097 | 57,752,967 | ||||||
PPB Group Bhd. | 2,969,100 | 14,559,828 | ||||||
Salmar ASA | 333,199 | 15,597,062 | ||||||
Tyson Foods, Inc., Class A | 1,933,214 | 135,518,301 | ||||||
Wilmar International Ltd. | 23,752,800 | 58,482,782 | ||||||
660,407,455 | ||||||||
Metals & Mining – 28.7% | ||||||||
Agnico Eagle Mines Ltd. | 678,527 | 28,597,705 | ||||||
Alcoa Corp.* | 475,056 | 24,322,867 | ||||||
Anglo American plc(a) | 4,113,853 | 96,858,284 | ||||||
Barrick Gold Corp. | 3,378,055 | 45,534,374 | ||||||
BHP Billiton Ltd. | 9,672,668 | 225,978,737 | ||||||
Boliden AB | 818,152 | 28,522,559 | ||||||
First Quantum Minerals Ltd.(a) | 2,061,875 | 29,755,207 | ||||||
Fortescue Metals Group Ltd.(a) | 5,252,008 | 18,078,020 | ||||||
Franco-Nevada Corp. | 543,009 | 38,575,475 | ||||||
Freeport-McMoRan, Inc. | 4,024,780 | 61,216,904 | ||||||
Glencore plc* | 36,806,943 | 177,791,018 | ||||||
Goldcorp, Inc. | 2,449,087 | 32,553,877 | ||||||
Grupo Mexico SAB de CV, Series B | 10,226,900 | 33,851,629 | ||||||
Kinross Gold Corp.* | 3,675,086 | 14,247,964 | ||||||
Korea Zinc Co. Ltd. | 36,289 | 14,728,975 | ||||||
Lundin Mining Corp. | 1,883,729 | 12,490,110 | ||||||
Mitsubishi Materials Corp. | 396,700 | 12,108,549 | ||||||
MMC Norilsk Nickel PJSC | 8,147 | 1,398,980 | ||||||
MMC Norilsk Nickel PJSC, ADR | 1,917,724 | 32,975,264 | ||||||
Newcrest Mining Ltd. | 2,137,752 | 34,129,375 | ||||||
Newmont Mining Corp. | 1,573,623 | 61,827,648 | ||||||
Norsk Hydro ASA | 4,100,657 | 25,624,307 | ||||||
Randgold Resources Ltd. | 263,920 | 21,330,779 | ||||||
Rio Tinto plc | 3,625,601 | 197,052,247 | ||||||
Royal Gold, Inc.(a) | 188,043 | 16,698,218 | ||||||
South32 Ltd.(a) | 15,304,061 | 42,974,444 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 199 |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Metals & Mining – (continued) | ||||||||
Sumitomo Metal Mining Co. Ltd. | 893,915 | $ | 38,378,914 | |||||
Teck Resources Ltd., Class B | 1,507,643 | 37,904,235 | ||||||
Vale SA* | 10,642,799 | 148,517,656 | ||||||
Vedanta Ltd. | 5,773,250 | 25,812,673 | ||||||
Wheaton Precious Metals Corp. | 1,249,055 | 25,966,158 | ||||||
1,605,803,152 | ||||||||
Multi-Utilities – 1.3% | ||||||||
Suez(a) | 1,520,839 | 21,976,233 | ||||||
Veolia Environnement SA* (a) | 2,111,360 | 50,138,827 | ||||||
72,115,060 | ||||||||
Oil, Gas & Consumable Fuels – 30.9% | ||||||||
Anadarko Petroleum Corp. | 534,438 | 35,978,366 | ||||||
Apache Corp.(a) | 372,787 | 15,265,628 | ||||||
BP plc | 19,533,379 | 144,745,128 | ||||||
Cabot Oil & Gas Corp.(a) | 435,468 | 10,412,040 | ||||||
Canadian Natural Resources Ltd. | 1,098,567 | 39,693,922 | ||||||
Chevron Corp. | 1,847,440 | 231,133,218 | ||||||
China Petroleum & Chemical Corp., Class H | 26,392,000 | 25,792,583 | ||||||
CNOOC Ltd. | 16,495,000 | 27,658,930 | ||||||
Concho Resources, Inc.* (a) | 145,156 | 22,819,975 | ||||||
ConocoPhillips | 1,187,640 | 77,790,420 | ||||||
Devon Energy Corp. | 514,644 | 18,697,017 | ||||||
Eni SpA | 2,513,838 | 49,202,949 | ||||||
EOG Resources, Inc. | 574,026 | 67,832,652 | ||||||
Exxon Mobil Corp. | 3,619,003 | 281,377,483 | ||||||
Gazprom PJSC | 1,633,763 | 3,785,829 | ||||||
Gazprom PJSC, ADR | 5,256,620 | 24,327,637 | ||||||
Gazprom PJSC, ADR, OTC | 155,011 | 706,850 | ||||||
LUKOIL PJSC | 82,420 | 5,439,860 | ||||||
LUKOIL PJSC, ADR | 405,832 | 27,109,578 | ||||||
Marathon Oil Corp. | 818,152 | 14,931,274 | ||||||
Noble Energy, Inc. | 468,458 | 15,847,934 | ||||||
Occidental Petroleum Corp. | 762,069 | 58,877,451 | ||||||
PetroChina Co. Ltd., Class H | 21,938,157 | 16,184,746 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Petroleo Brasileiro SA (Preference)* | 3,958,800 | $ | 26,072,666 | |||||
Pioneer Natural Resources Co. | 168,249 | 33,910,586 | ||||||
Repsol SA | 1,280,012 | 24,512,191 | ||||||
Royal Dutch Shell plc, Class A | 4,513,032 | 157,327,580 | ||||||
Statoil ASA(a) | 1,089,227 | 27,940,751 | ||||||
Suncor Energy, Inc. | 1,682,490 | 64,441,093 | ||||||
TOTAL SA(a) | 2,507,218 | 158,519,123 | ||||||
Woodside Petroleum Ltd. | 936,916 | 22,786,983 | ||||||
1,731,122,443 | ||||||||
Paper & Forest Products – 3.2% | ||||||||
Canfor Corp.* | 211,136 | 4,856,976 | ||||||
Century Plyboards India Ltd. | 171,548 | 837,819 | ||||||
Corticeira Amorim SGPS SA(a) | 52,784 | 702,785 | ||||||
Duratex SA* | 989,700 | 3,036,325 | ||||||
Interfor Corp.* | 201,239 | 3,769,062 | ||||||
Mondi plc | 1,072,175 | 29,919,162 | ||||||
Oji Holdings Corp. | 3,299,000 | 23,214,348 | ||||||
Stella-Jones, Inc.(a) | 131,960 | 4,789,655 | ||||||
Stora Enso OYJ, Class R | 1,689,088 | 33,539,827 | ||||||
UPM-Kymmene OYJ | 1,600,015 | 57,375,539 | ||||||
West Fraser Timber Co. Ltd. | 191,342 | 12,981,016 | ||||||
Western Forest Products, Inc. | 1,243,723 | 2,687,400 | ||||||
177,709,914 | ||||||||
Trading Companies & Distributors – 2.2% | ||||||||
Marubeni Corp. | 11,876,400 | 89,454,228 | ||||||
Mitsui & Co. Ltd. | 1,846,000 | 33,343,559 | ||||||
122,797,787 | ||||||||
Water Utilities – 3.6% | ||||||||
Aguas Andinas SA, Class A | 10,424,840 | 6,946,769 | ||||||
American States Water Co.(a) | 141,857 | 7,904,272 | ||||||
American Water Works Co., Inc. | 656,501 | 56,839,857 | ||||||
Aqua America, Inc.(a) | 676,295 | 23,771,769 | ||||||
California Water Service Group(a) | 181,445 | 7,030,994 |
See Accompanying Notes to the Financial Statements.
200 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Investments | Shares | Value | ||||||
Water Utilities – (continued) | ||||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 1,319,600 | $ | 13,303,075 | |||||
Cia de Saneamento de Minas Gerais-COPASA | 222,433 | 3,214,331 | ||||||
Cia de Saneamento do Parana (Preference) | 989,700 | 3,027,812 | ||||||
Guangdong Investment Ltd. | 10,689,576 | 16,644,044 | ||||||
Pennon Group plc | 1,520,839 | 14,499,704 | ||||||
Severn Trent plc | 857,740 | 22,919,318 | ||||||
United Utilities Group plc | 2,424,765 | 24,821,022 | ||||||
200,922,967 | ||||||||
Total Common Stocks (Cost $4,759,604,783) | 5,546,552,301 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(b) – 1.6% | ||||||||
BANK NOTES – 0.0%(c) | ||||||||
Bank of America NA, Charlotte (ICE LIBOR USD 1 Month + 0.16%), 2.06%, 7/10/2018(d) | $ | 2,000,000 | 2,000,000 | |||||
CERTIFICATES OF DEPOSIT – 0.8% | ||||||||
Bank of Nova Scotia, Houston (ICE LIBOR USD 3 Month + 0.14%), 2.08%, 5/24/2018(d) | 2,000,000 | 2,000,000 | ||||||
Barclays Bank plc, New York (ICE LIBOR USD 1 Month + 0.27%), 2.15%, 8/3/2018(d) | 2,000,000 | 1,999,896 | ||||||
Canadian Imperial Bank of Commerce, New York (ICE LIBOR USD 1 Month + 0.40%), 2.30%, 9/17/2018(d) | 4,000,000 | 4,001,348 | ||||||
Citibank NA, New York (ICE LIBOR USD 1 Month + 0.33%), 2.22%, 9/12/2018(d) | 3,000,000 | 2,999,652 |
Investments | Principal Amount | Value | ||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
MUFG Bank Ltd., New York Branch 2.39%, 7/27/2018 | $ | 1,500,000 | $ | 1,498,487 | ||||
Natixis SA, New York 2.22%, 6/11/2018 | 2,000,000 | 2,000,000 | ||||||
Royal Bank of Canada (ICE LIBOR USD 1 Month + 0.40%), 2.30%, 9/17/2018(d) | 3,000,000 | 3,000,438 | ||||||
Societe Generale, New York 2.11%, 5/31/2018 | 2,000,000 | 2,000,000 | ||||||
Standard Chartered, New York (ICE LIBOR USD 1 Month + 0.20%), 2.09%, 5/1/2018(d) | 3,500,000 | 3,500,000 | ||||||
State Street Bank & Trust (ICE LIBOR USD 1 Month + 0.12%), 2.02%, 5/8/2018(d) | 4,000,000 | 4,000,000 | ||||||
Sumitomo Mitsui Trust Bank Ltd., London (ICE LIBOR USD 1 Month + 0.23%), 2.13%, 5/17/2018(d) | 2,000,000 | 2,000,000 | ||||||
Svenska Handelsbanken, New York (ICE LIBOR USD 1 Month + 0.37%), 2.27%, 9/28/2018(d) | 2,000,000 | 2,000,564 | ||||||
The Chiba Bank Ltd., New York Branch 2.25%, 5/18/2018 | 2,000,000 | 2,000,000 | ||||||
The Sumitomo Bank Ltd., New York (ICE LIBOR USD 1 Month + 0.23%), 2.13%, 8/22/2018(d) | 1,000,000 | 999,715 | ||||||
Toronto-Dominion Bank, New York 2.25%, 6/26/2018 | 2,000,000 | 2,000,000 | ||||||
Wells Fargo Bank (San Francisco) NA (ICE LIBOR USD 3 Month + 0.14%), 2.50%, 10/26/2018(d) | 3,000,000 | 3,002,083 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 201 |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Westpac Banking Corp., New York (US Federal Funds Effective Rate (continuous series) + 0.45%), 2.15%, 2/15/2019(d) | $ | 3,000,000 | $ | 2,999,760 | ||||
Total Certificates of Deposit (Cost $41,998,230) | 42,001,943 | |||||||
COMMERCIAL PAPER – 0.1% | ||||||||
ING (US) Funding LLC (ICE LIBOR USD 1 Month + 0.19%), 2.09%, 8/10/2018(d) | 4,000,000 | 3,998,992 | ||||||
Union Bank of Switzerland (ICE LIBOR USD 1 Month + 0.21%), 2.09%, 5/2/2018(d) (e) | 2,000,000 | 2,000,000 | ||||||
Total Commercial Paper (Cost $6,000,000) | 5,998,992 | |||||||
FUNDING AGREEMENTS – 0.1% | ||||||||
United of Omaha Life Insurance (ICE LIBOR USD 3 Month + 0.12%), 2.24%, 5/30/2018(d) (Cost $3,000,000) | 3,000,000 | 3,000,000 | ||||||
REPURCHASE AGREEMENTS – 0.6% | ||||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $5,200,280, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $5,674,542 | 5,200,000 | 5,200,000 |
Investments | Principal Amount | Value | ||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $1,270,568, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $1,288,017 | $ | 1,270,508 | $ | 1,270,508 | ||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $5,000,269, collateralized by various Common Stocks; total market value $5,592,440 | 5,000,000 | 5,000,000 | ||||||
Mizuho Securities USA, Inc., 1.72%, dated 4/30/2018, due 5/1/2018, repurchase price $10,000,478, collateralized by various U.S. Treasury Securities, ranging from 1.00% – 2.75%, maturing 6/30/2019 – 2/15/2028; total market value $10,162,755 | 10,000,000 | 10,000,000 | ||||||
ML Pierce Fenner & Smith, Inc., 2.24%, dated 4/30/2018, due 7/31/2018, repurchase price $8,045,796, collateralized by various Common Stocks; total market value $8,731,017 | 8,000,000 | 8,000,000 |
See Accompanying Notes to the Financial Statements.
202 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $6,300,326, collateralized by various Common Stocks; total market value $6,959,014 | $ | 6,300,000 | $ | 6,300,000 | ||||
Total Repurchase Agreements (Cost $35,770,508) | 35,770,508 | |||||||
Total Securities Lending Reinvestments (Cost $88,768,738) | 88,771,443 | |||||||
Total Investments – 100.7% (Cost $4,848,373,521) | 5,635,323,744 | |||||||
Liabilities in excess of other assets – (0.7%) |
| (37,430,654 | ) | |||||
NET ASSETS – 100.0% | $ | 5,597,893,090 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $253,182,692, collateralized in the form of cash with a value of $88,775,678 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $45,973,836 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 3, 2018 – February 15, 2048 and $133,803,195 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from |
0.00% – 8.50%, and maturity dates ranging from May 8, 2018 – November 2, 2086; a total value of $268,552,709. |
(b) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $88,771,443. |
(c) | Represents less than 0.05% of net assets. |
(d) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2018. |
(e) | Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration normally to qualified institutional buyers. |
Percentages shown are based on Net Assets.
Abbreviations
ADR – American Depositary Receipt
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
NVDR – Non-Voting Depositary Receipt
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
USD – US Dollar
As of April 30, 2018, 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 | $ | 919,121,131 | ||
Aggregate gross unrealized depreciation | (143,018,498 | ) | ||
Net unrealized appreciation | $ | 776,102,633 | ||
Federal income tax cost | $ | 4,859,554,853 |
Futures Contracts
FlexShares® Morningstar Global Upstream Natural Resources Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
Long Contracts | ||||||||||||||||||||
FTSE 100 Index | 124 | 06/15/2018 | GBP | $ | 12,741,038 | $ | 617,657 | |||||||||||||
FTSE/JSE Top 40 Index | 19 | 06/21/2018 | ZAR | 788,796 | (10,907 | ) | ||||||||||||||
Hang Seng Index | 3 | 05/30/2018 | HKD | 586,086 | 9,716 | |||||||||||||||
MSCI Emerging Markets E-Mini Index | 21 | 06/15/2018 | USD | 1,209,810 | (38,134 | ) | ||||||||||||||
S&P Midcap 400 E-Mini Index | 50 | 06/15/2018 | USD | 9,360,500 | (188,523 | ) |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 203 |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Futures Contracts (cont.)
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
S&P/TSX 60 Index | 111 | 06/14/2018 | CAD | $ | 15,930,247 | 155,903 | ||||||||||||||
SPI 200 Index | 58 | 06/21/2018 | AUD | 6,529,981 | 37,560 | |||||||||||||||
$ | 583,272 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Forward Foreign Currency Contracts | ||||||||||||||||||||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund had the following outstanding contracts as of April 30, 2018: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
CAD | 5,376,767 | Morgan Stanley | USD | 4,137,068 | 06/20/2018 | $ | 62,140 | |||||||||||||||
CAD | 906,477 | Societe Generale | USD | 700,000 | 06/20/2018 | 7,951 | ||||||||||||||||
CAD | 900,755 | Toronto-Dominion Bank (The) | USD | 700,000 | 06/20/2018 | 3,482 | ||||||||||||||||
USD | 700,000 | Citibank NA | AUD | 910,060 | 06/20/2018 | 12,939 | ||||||||||||||||
USD | 4,750,000 | Goldman Sachs & Co. | AUD | 6,066,915 | 06/20/2018 | 169,705 | ||||||||||||||||
USD | 3,000,000 | Toronto-Dominion Bank (The) | AUD | 3,878,018 | 06/20/2018 | 72,241 | ||||||||||||||||
USD | 159,323 | Goldman Sachs & Co. | BRL* | 522,882 | 06/20/2018 | 10,127 | ||||||||||||||||
USD | 1,022,542 | Citibank NA | CHF | 961,534 | 06/20/2018 | 46,926 | ||||||||||||||||
USD | 2,140,000 | Goldman Sachs & Co. | EUR | 1,724,258 | 06/20/2018 | 48,743 | ||||||||||||||||
USD | 2,000,000 | Societe Generale | EUR | 1,615,883 | 06/20/2018 | 40,186 | ||||||||||||||||
USD | 1,800,000 | Toronto-Dominion Bank (The) | EUR | 1,455,608 | 06/20/2018 | 34,575 | ||||||||||||||||
USD | 1,900,000 | Citibank NA | GBP | 1,341,846 | 06/20/2018 | 47,304 | ||||||||||||||||
USD | 5,320,000 | Toronto-Dominion Bank (The) | GBP | 3,806,730 | 06/20/2018 | 64,023 | ||||||||||||||||
USD | 1,980,000 | Goldman Sachs & Co. | INR* | 130,647,060 | 06/20/2018 | 32,921 | ||||||||||||||||
USD | 2,580,000 | Toronto-Dominion Bank (The) | JPY | 272,626,794 | 06/20/2018 | 79,939 | ||||||||||||||||
USD | 584,924 | Morgan Stanley | KRW* | 620,383,200 | 06/20/2018 | 3,235 | ||||||||||||||||
USD | 350,000 | Goldman Sachs & Co. | RUB* | 20,370,896 | 06/20/2018 | 28,430 | ||||||||||||||||
USD | 180,000 | Citibank NA | SGD | 236,668 | 06/20/2018 | 1,057 | ||||||||||||||||
Total unrealized appreciation | $ | 765,924 | ||||||||||||||||||||
AUD | 5,151,851 | BNP Paribas SA | USD | 4,000,000 | 06/20/2018 | $ | (110,544 | ) | ||||||||||||||
AUD | 4,536,376 | Citibank NA | USD | 3,551,705 | 06/20/2018 | (126,911 | ) | |||||||||||||||
BRL* | 1,683,101 | Goldman Sachs & Co. | USD | 490,000 | 06/20/2018 | (9,753 | ) | |||||||||||||||
CAD | 1,889,715 | Goldman Sachs & Co. | USD | 1,500,000 | 06/20/2018 | (24,149 | ) | |||||||||||||||
EUR | 2,705,416 | Citibank NA | USD | 3,363,288 | 06/20/2018 | (82,040 | ) | |||||||||||||||
EUR | 367,529 | Societe Generale | USD | 450,000 | 06/20/2018 | (4,245 | ) | |||||||||||||||
GBP | 2,787,033 | Bank of New York | USD | 4,000,000 | 06/20/2018 | (151,925 | ) | |||||||||||||||
GBP | 295,993 | Goldman Sachs & Co. | USD | 420,000 | 06/20/2018 | (11,320 | ) | |||||||||||||||
GBP | 424,887 | Morgan Stanley | USD | 600,000 | 06/20/2018 | (13,356 | ) | |||||||||||||||
GBP | 1,776,989 | Societe Generale | USD | 2,489,791 | 06/20/2018 | (36,292 | ) | |||||||||||||||
GBP | 3,507,925 | Toronto-Dominion Bank (The) | USD | 5,000,000 | 06/20/2018 | (156,584 | ) | |||||||||||||||
INR* | 26,670,600 | Goldman Sachs & Co. | USD | 406,632 | 06/20/2018 | (9,151 | ) | |||||||||||||||
INR* | 118,809,000 | Toronto-Dominion Bank (The) | USD | 1,816,232 | 06/20/2018 | (45,580 | ) |
See Accompanying Notes to the Financial Statements.
204 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
Forward Foreign Currency Contracts (cont.)
| ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
JPY | 57,827,673 | Citibank NA | USD | 548,787 | 06/20/2018 | $ | (18,492 | ) | ||||||||||||||
NOK | 5,395,061 | Citibank NA | USD | 700,000 | 06/20/2018 | (25,345 | ) | |||||||||||||||
NOK | 5,567,189 | Morgan Stanley | USD | 714,474 | 06/20/2018 | (18,295 | ) | |||||||||||||||
RUB* | 57,103,456 | Goldman Sachs & Co. | USD | 989,365 | 06/20/2018 | (87,944 | ) | |||||||||||||||
SGD | 747,146 | Citibank NA | USD | 571,059 | 06/20/2018 | (6,148 | ) | |||||||||||||||
USD | 3,400,000 | Toronto-Dominion Bank (The) | CAD | 4,452,521 | 06/20/2018 | (77,380 | ) | |||||||||||||||
Total unrealized depreciation | $ | (1,015,454 | ) | |||||||||||||||||||
Net unrealized depreciation | $ | (249,530 | ) |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
AUD – Australian Dollar
BRL – Brazilian Real
CAD – Canadian Dollar
CHF – Swiss Franc
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
INR – Indian Rupee
JPY – Japanese Yen
KRW – Korean Won
NOK – Norwegian Krone
RUB – Russian Ruble
SGD – Singapore Dollar
USD – US Dollar
ZAR – South African Rand
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 205 |
Table of Contents
FlexShares® Morningstar Global Upstream Natural Resources Index Fund (cont.)
FlexShares® Morningstar Global Upstream Natural Resources Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 6.9 | % | ||
Brazil | 3.5 | |||
Canada | 10.4 | |||
Chile | 0.1 | |||
China | 1.5 | |||
Finland | 1.6 | |||
France | 4.1 | |||
Germany | 0.6 | |||
India | 1.0 | |||
Indonesia | 0.2 | |||
Israel | 0.3 | |||
Italy | 0.9 | |||
Japan | 3.5 | |||
Malaysia | 1.0 | |||
Mexico | 0.6 | |||
New Zealand | 0.8 | |||
Norway | 3.1 | |||
Philippines | 0.1 | |||
Portugal | 0.0 | † | ||
Russia | 1.7 | |||
Singapore | 1.3 | |||
South Africa | 0.4 | |||
South Korea | 0.6 | |||
Spain | 0.4 | |||
Sweden | 0.5 | |||
Thailand | 0.4 | |||
United Kingdom | 16.1 | |||
United States | 37.5 | |||
Other1 | 0.9 | |||
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.
206 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® STOXX® Global Broad Infrastructure Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.2% | ||||||||
Air Freight & Logistics – 3.5% | ||||||||
bpost SA | 56,056 | $ | 1,230,597 | |||||
CTT-Correios de Portugal SA(a) | 42,588 | 157,349 | ||||||
Deutsche Post AG (Registered) | 514,332 | 22,433,115 | ||||||
Oesterreichische Post AG | 14,560 | 701,193 | ||||||
PostNL NV(a) | 182,000 | 708,273 | ||||||
Royal Mail plc | 529,256 | 4,236,778 | ||||||
Singapore Post Ltd.(a) | 691,600 | 699,931 | ||||||
30,167,236 | ||||||||
Commercial Services & Supplies – 3.3% | ||||||||
Bingo Industries Ltd.(a) (b) | 186,368 | 371,395 | ||||||
China Everbright International Ltd. | 1,456,000 | 2,055,551 | ||||||
Clean Harbors, Inc.* (a) | 12,376 | 566,821 | ||||||
Cleanaway Co. Ltd. | 46,000 | 296,182 | ||||||
Cleanaway Waste Management Ltd.(a) | 1,213,212 | 1,451,532 | ||||||
Covanta Holding Corp. | 26,572 | 395,923 | ||||||
Daiseki Co. Ltd. | 22,400 | 698,049 | ||||||
Insun ENT Co. Ltd.* | 16,016 | 119,664 | ||||||
Republic Services, Inc.(a) | 46,592 | 3,013,571 | ||||||
Shanghai Youngsun Investment Co. Ltd., Class B* ^ (c) | 57,800 | 168,892 | ||||||
Stericycle, Inc.* (a) | 17,836 | 1,047,152 | ||||||
Tox Free Solutions Ltd. | 100,464 | 260,873 | ||||||
Waste Connections, Inc. | 137,956 | 9,986,596 | ||||||
Waste Management, Inc. | 89,180 | 7,249,442 | ||||||
27,681,643 | ||||||||
Diversified Financial Services – 0.0%(d) | ||||||||
Metro Pacific Investments Corp. | 4,368,000 | 430,474 | ||||||
Diversified Telecommunication Services – 14.7% | ||||||||
AT&T, Inc. | 1,086,904 | 35,541,761 | ||||||
BCE, Inc. | 163,072 | 6,931,466 | ||||||
BT Group plc | 1,506,232 | 5,175,111 | ||||||
Cellnex Telecom SA(b) | 29,120 | 782,465 | ||||||
CenturyLink, Inc.(a) | 164,164 | 3,050,167 | ||||||
Chunghwa Telecom Co. Ltd. | 843,000 | 3,219,678 | ||||||
Deutsche Telekom AG (Registered) | 583,856 | 10,224,988 |
Investments | Shares | Value | ||||||
Diversified Telecommunication Services – (continued) | ||||||||
Ei Towers SpA | 3,276 | $ | 189,591 | |||||
Infrastrutture Wireless Italiane SpA(b) | 51,324 | 413,915 | ||||||
Nippon Telegraph & Telephone Corp. | 227,800 | 10,835,723 | ||||||
Telefonica SA | 800,072 | 8,151,734 | ||||||
Telstra Corp. Ltd. | 2,051,140 | 4,923,604 | ||||||
Verizon Communications, Inc. | 721,812 | 35,621,423 | ||||||
125,061,626 | ||||||||
Electric Utilities – 13.2% | ||||||||
American Electric Power Co., Inc. | 99,372 | 6,954,052 | ||||||
Duke Energy Corp.(a) | 138,684 | 11,116,909 | ||||||
Edison International | 66,248 | 4,340,569 | ||||||
Enel SpA | 3,519,516 | 22,401,007 | ||||||
Exelon Corp. | 196,560 | 7,799,501 | ||||||
Iberdrola SA | 2,690,324 | 20,854,884 | ||||||
NextEra Energy, Inc. | 93,912 | 15,393,116 | ||||||
PG&E Corp. | 104,468 | 4,815,975 | ||||||
PPL Corp. | 144,508 | 4,205,183 | ||||||
Southern Co. (The)(a) | 203,840 | 9,401,101 | ||||||
Xcel Energy, Inc. | 98,280 | 4,603,435 | ||||||
111,885,732 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.9% | ||||||||
American Tower Corp. | 76,804 | 10,472,993 | ||||||
CoreCivic, Inc. | 16,016 | 322,883 | ||||||
Crown Castle International Corp. | 72,800 | 7,343,336 | ||||||
CyrusOne, Inc.(a) | 18,200 | 975,338 | ||||||
Digital Realty Trust, Inc.(a) | 34,944 | 3,693,231 | ||||||
Equinix, Inc. | 14,196 | 5,973,535 | ||||||
GEO Group, Inc. (The)(a) | 17,472 | 393,120 | ||||||
Keppel DC REIT(a) | 182,000 | 196,564 | ||||||
SBA Communications Corp.* | 21,476 | 3,441,099 | ||||||
32,812,099 | ||||||||
Gas Utilities – 0.6% | ||||||||
APA Group | 484,120 | 3,051,407 | ||||||
Infraestructura Energetica Nova SAB de CV | 254,800 | 1,116,895 | ||||||
Petronas Gas Bhd. | 291,200 | 1,322,590 | ||||||
5,490,892 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 207 |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Health Care Providers & Services – 3.2% | ||||||||
Acadia Healthcare Co., Inc.* (a) | 18,200 | $ | 647,556 | |||||
Bangkok Dusit Medical Services PCL, NVDR | 5,787,600 | 4,126,141 | ||||||
Bumrungrad Hospital PCL, NVDR | 218,400 | 1,314,829 | ||||||
Encompass Health Corp. | 20,384 | 1,239,755 | ||||||
HCA Healthcare, Inc. | 58,968 | 5,645,596 | ||||||
Healthscope Ltd.(a) | 800,072 | 1,467,560 | ||||||
IHH Healthcare Bhd. | 1,965,600 | 3,045,966 | ||||||
Life Healthcare Group Holdings Ltd.(a) | 582,400 | 1,376,253 | ||||||
LifePoint Health, Inc.* (a) | 9,100 | 435,890 | ||||||
Netcare Ltd. | 558,012 | 1,385,224 | ||||||
Ramsay Health Care Ltd. | 68,432 | 3,341,620 | ||||||
Spire Healthcare Group plc(b) | 159,796 | 501,817 | ||||||
Tenet Healthcare Corp.* (a) | 15,288 | 365,995 | ||||||
Universal Health Services, Inc., Class B | 18,200 | 2,078,440 | ||||||
26,972,642 | ||||||||
Industrial Conglomerates – 0.1% | ||||||||
Beijing Enterprises Holdings Ltd. | 182,000 | 916,000 | ||||||
Internet Software & Services – 0.0%(d) | ||||||||
NEXTDC Ltd.* (a) | 53,508 | 278,291 | ||||||
Media – 4.7% | ||||||||
Charter Communications, Inc., Class A* | 30,576 | 8,294,963 | ||||||
Comcast Corp., Class A | 824,460 | 25,879,799 | ||||||
DISH Network Corp., Class A* | 36,400 | 1,221,220 | ||||||
Liberty Global plc, Class C* | 99,372 | 2,891,725 | ||||||
Sirius XM Holdings, Inc.(a) | 266,448 | 1,686,616 | ||||||
39,974,323 | ||||||||
Multi-Utilities – 8.4% | ||||||||
Consolidated Edison, Inc. | 63,336 | 5,075,114 | ||||||
Dominion Energy, Inc.(a) | 129,948 | 8,649,339 | ||||||
Engie SA | 833,924 | 14,659,808 | ||||||
National Grid plc | 1,553,916 | 18,038,332 | ||||||
Public Service Enterprise Group, Inc. | 103,376 | 5,391,058 | ||||||
Sempra Energy(a) | 49,140 | 5,493,852 |
Investments | Shares | Value | ||||||
Multi-Utilities – (continued) | ||||||||
Suez(a) | 200,564 | $ | 2,898,164 | |||||
Veolia Environnement SA* (a) | 301,756 | 7,165,851 | ||||||
WEC Energy Group, Inc. | 60,788 | 3,907,453 | ||||||
71,278,971 | ||||||||
Oil, Gas & Consumable Fuels – 9.7% | ||||||||
Enagas SA | 105,924 | 3,089,374 | ||||||
Enbridge Income Fund Holdings, Inc.(a) | 65,884 | 1,411,268 | ||||||
Enbridge, Inc. | 776,048 | 23,542,655 | ||||||
Inter Pipeline Ltd. | 178,360 | 3,220,901 | ||||||
Keyera Corp. | 96,096 | 2,591,395 | ||||||
Kinder Morgan, Inc. | 389,844 | 6,167,332 | ||||||
Koninklijke Vopak NV(a) | 30,940 | 1,528,912 | ||||||
ONEOK, Inc.(a) | 79,716 | 4,800,497 | ||||||
Pembina Pipeline Corp. | 230,776 | 7,360,997 | ||||||
Plains GP Holdings LP, Class A | 23,660 | 573,045 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 773,500 | 1,364,318 | ||||||
Snam SpA | 1,027,208 | 4,945,675 | ||||||
TransCanada Corp. | 408,455 | 17,345,677 | ||||||
Williams Cos., Inc. (The) | 160,524 | 4,130,283 | ||||||
82,072,329 | ||||||||
Road & Rail – 18.1% | ||||||||
Aurizon Holdings Ltd. | 1,001,728 | 3,402,695 | ||||||
Canadian National Railway Co. | 337,792 | 26,131,154 | ||||||
Canadian Pacific Railway Ltd. | 76,076 | 13,903,105 | ||||||
Central Japan Railway Co. | 109,200 | 21,924,825 | ||||||
CSX Corp. | 180,544 | 10,722,508 | ||||||
East Japan Railway Co. | 199,700 | 19,144,190 | ||||||
Hankyu Hanshin Holdings, Inc. | 137,600 | 5,426,036 | ||||||
Kansas City Southern(a) | 21,840 | 2,328,799 | ||||||
Keikyu Corp.(a) | 145,600 | 2,670,498 | ||||||
Keisei Electric Railway Co. Ltd. | 94,600 | 3,086,333 | ||||||
MTR Corp. Ltd. | 827,132 | 4,663,535 | ||||||
Norfolk Southern Corp. | 57,876 | 8,303,470 | ||||||
Tobu Railway Co. Ltd. | 109,200 | 3,482,824 | ||||||
Union Pacific Corp. | 159,068 | 21,256,257 | ||||||
West Japan Railway Co. | 98,900 | 7,004,569 | ||||||
153,450,798 |
See Accompanying Notes to the Financial Statements.
208 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Transportation Infrastructure – 8.2% | ||||||||
Abertis Infraestructuras SA | 369,664 | $ | 8,155,428 | |||||
Aena SME SA(b) | 33,124 | 6,847,493 | ||||||
Aeroports de Paris | 15,288 | 3,369,103 | ||||||
Airports of Thailand PCL, NVDR | 2,329,600 | 5,259,316 | ||||||
Atlantia SpA | 249,340 | 8,284,446 | ||||||
Auckland International Airport Ltd. | 450,632 | 2,025,747 | ||||||
Bangkok Expressway & Metro PCL, NVDR | 4,222,400 | 1,036,869 | ||||||
CCR SA | 618,800 | 2,121,985 | ||||||
China Merchants Port Holdings Co. Ltd. | 728,000 | 1,638,133 | ||||||
COSCO SHIPPING Ports Ltd.(a) | 728,000 | 642,824 | ||||||
Flughafen Zurich AG (Registered) | 10,192 | 2,141,566 | ||||||
Getlink SE | 245,700 | 3,470,232 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B | 182,000 | 1,885,103 | ||||||
International Container Terminal Services, Inc. | 917,280 | 1,499,568 | ||||||
Macquarie Atlas Roads Group(a) | 378,560 | 1,837,411 | ||||||
Promotora y Operadora de Infraestructura SAB de CV* | 96,460 | 984,211 | ||||||
Qube Holdings Ltd.(a) | 673,400 | 1,169,127 | ||||||
Sydney Airport | 1,210,664 | 6,515,891 | ||||||
Transurban Group | 1,180,816 | 10,339,532 | ||||||
Westshore Terminals Investment Corp. | 21,840 | 377,700 | ||||||
69,601,685 | ||||||||
Water Utilities – 2.5% | ||||||||
Aguas Andinas SA, Class A | 1,554,644 | 1,035,964 | ||||||
American Water Works Co., Inc. | 37,128 | 3,214,542 | ||||||
Aqua America, Inc.(a) | 38,220 | 1,343,433 | ||||||
Beijing Enterprises Water Group Ltd.* (a) | 2,912,000 | 1,706,775 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo* | 182,000 | 1,834,768 | ||||||
Cia de Saneamento do Parana (Preference) | 218,400 | 668,156 |
Investments | Shares | Value | ||||||
Water Utilities – (continued) | ||||||||
Eastern Water Resources Development and Management PCL, NVDR | 327,600 | $ | 119,373 | |||||
Guangdong Investment Ltd. | 1,456,000 | 2,267,043 | ||||||
Pennon Group plc | 239,148 | 2,280,041 | ||||||
Severn Trent plc | 119,028 | 3,180,498 | ||||||
United Utilities Group plc | 339,612 | 3,476,426 | ||||||
WHA Utilities and Power PCL, NVDR* | 436,800 | 87,886 | ||||||
21,214,905 | ||||||||
Wireless Telecommunication Services – 5.1% | ||||||||
China Mobile Ltd. | 973,500 | 9,327,837 | ||||||
KDDI Corp. | 327,600 | 8,792,883 | ||||||
SoftBank Group Corp. | 152,300 | 11,831,869 | ||||||
Vodafone Group plc | 4,682,496 | 13,647,006 | ||||||
43,599,595 | ||||||||
Total Common Stocks (Cost $779,004,227) | 842,889,241 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(e) – 4.5% | ||||||||
CERTIFICATES OF DEPOSIT – 0.5% | ||||||||
Bank of Nova Scotia, Houston | $ | 1,000,000 | 1,000,000 | |||||
Natixis SA, New York | 1,000,000 | 1,000,000 | ||||||
Sumitomo Mitsui Trust Bank Ltd., London (ICE LIBOR USD 1 Month + 0.23%), 2.13%, 5/17/2018(f) | 1,000,000 | 1,000,000 | ||||||
The Chiba Bank Ltd., New York Branch | 1,000,000 | 1,000,000 | ||||||
Total Certificates of Deposit (Cost $4,000,000) | 4,000,000 | |||||||
COMMERCIAL PAPER – 0.2% | ||||||||
ING (US) Funding LLC (ICE LIBOR USD 1 Month + 0.19%), | 1,000,000 | 999,748 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 209 |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
COMMERCIAL PAPER – (continued) | ||||||||
Union Bank of Switzerland (ICE LIBOR USD | $ | 1,000,000 | $ | 1,000,000 | ||||
Total Commercial Paper (Cost $2,000,000) | 1,999,748 | |||||||
REPURCHASE AGREEMENTS – 3.8% | ||||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $1,000,054, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $1,091,258 | 1,000,000 | 1,000,000 | ||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $21,663,089, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $21,960,595 | 21,662,060 | 21,662,060 | ||||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $3,000,161, collateralized by various Common Stocks; total market value $3,355,464 | 3,000,000 | 3,000,000 |
Investments | Principal Amount | Value | ||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
ML Pierce Fenner & Smith, Inc., 2.24%, dated 4/30/2018, due 7/31/2018, repurchase price $2,011,449, collateralized by various Common Stocks; total market value $2,182,754 | $ | 2,000,000 | $ | 2,000,000 | ||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $4,200,217, collateralized by various Common Stocks; total market value $4,639,343 | 4,200,000 | 4,200,000 | ||||||
Total Repurchase Agreements (Cost $31,862,060) | 31,862,060 | |||||||
Total Securities Lending Reinvestments (Cost $37,862,060) | 37,861,808 | |||||||
Total Investments – 103.7% (Cost $816,866,287) | 880,751,049 | |||||||
Liabilities in excess of other assets – (3.7%) |
| (31,388,445 | ) | |||||
NET ASSETS – 100.0% | $ | 849,362,604 |
* | Non-income producing security. |
^ | Security subject to restrictions on resale. |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $65,943,795, collateralized in the form of cash with a value of $37,862,060 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $9,901,768 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 10, 2018 – February 15, 2048 and $20,804,907 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from May 8, 2018 – July 22, 2068; a total value of $68,568,735. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
See Accompanying Notes to the Financial Statements.
210 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
(c) | Security fair valued as of April 30, 2018 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2018 amounted to $168,892, which represents approximately 0.02% of net assets of the Fund. |
(d) | Represents less than 0.05% of net assets. |
(e) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $37,861,808. |
(f) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2018. |
(g) | Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration normally to qualified institutional buyers. |
Percentages shown are based on Net Assets.
Abbreviations
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
NVDR – Non-Voting Depositary Receipt
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
USD – US Dollar
As of April 30, 2018, 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 | $ | 105,953,850 | ||
Aggregate gross unrealized depreciation | (43,812,129 | ) | ||
Net unrealized appreciation | $ | 62,141,721 | ||
Federal income tax cost | $ | 818,699,304 |
Futures Contracts
FlexShares® STOXX® Global Broad Infrastructure Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index | 29 | 06/15/2018 | EUR | $ | 1,217,213 | $ | 46,676 | |||||||||||||
FTSE 100 Index | 6 | 06/15/2018 | GBP | 616,502 | 27,736 | |||||||||||||||
S&P 500 E-Mini Index | 20 | 06/15/2018 | USD | 2,647,000 | (26,842 | ) | ||||||||||||||
S&P/TSX 60 Index | 7 | 06/14/2018 | CAD | 1,004,610 | 12,807 | |||||||||||||||
SPI 200 Index | 3 | 06/21/2018 | AUD | 337,758 | 3,046 | |||||||||||||||
TOPIX Index | 5 | 06/07/2018 | JPY | 813,114 | 33,314 | |||||||||||||||
$ | 96,737 |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Forward Foreign Currency Contracts | ||||||||||||||||||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund had the following outstanding contracts as of April 30, 2018: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||||
CAD | 245,594 | Morgan Stanley | USD | 188,969 | 06/20/2018 | $ | 2,838 | |||||||||||||||
USD | 65,036 | Citibank NA | AUD | 83,066 | 06/20/2018 | 2,324 | ||||||||||||||||
USD | 228,000 | Toronto-Dominion Bank (The) | AUD | 294,729 | 06/20/2018 | 5,490 | ||||||||||||||||
USD | 423,981 | Societe Generale | GBP | 302,600 | 06/20/2018 | 6,180 | ||||||||||||||||
USD | 810,000 | Toronto-Dominion Bank (The) | JPY | 85,518,105 | 06/20/2018 | 25,776 | ||||||||||||||||
Total unrealized appreciation |
| $ | 42,608 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 211 |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
Forward Foreign Currency Contracts (cont.)
|
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||||
CAD | 226,597 | Bank of Montreal | USD | 180,000 | 06/20/2018 | $ | (3,029 | ) | ||||||||||||||
EUR | 355,599 | Citibank NA | USD | 442,069 | 06/20/2018 | (10,783 | ) | |||||||||||||||
EUR | 119,571 | Goldman Sachs & Co. | USD | 148,000 | 06/20/2018 | (2,979 | ) | |||||||||||||||
GBP | 355,637 | Citibank NA | USD | 500,000 | 06/20/2018 | (8,969 | ) | |||||||||||||||
JPY | 58,319,714 | Citibank NA | USD | 553,457 | 06/20/2018 | (18,649 | ) | |||||||||||||||
JPY | 19,255,194 | Toronto-Dominion Bank (The) | USD | 180,000 | 06/20/2018 | (3,425 | ) | |||||||||||||||
USD | 210,000 | Goldman Sachs & Co. | CAD | 270,854 | 06/20/2018 | (1,535 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (49,369 | ) | ||||||||||||||||||
Net unrealized depreciation |
| $ | (6,761 | ) |
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
EUR – Euro
GBP – British Pound
JPY – Japanese Yen
USD – US Dollar
FlexShares® STOXX® Global Broad Infrastructure Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 4.5 | % | ||
Austria | 0.1 | |||
Belgium | 0.1 | |||
Brazil | 0.5 | |||
Canada | 13.3 | |||
Chile | 0.1 | |||
China | 2.2 | |||
France | 3.7 | |||
Germany | 3.8 | |||
Hong Kong | 0.6 | |||
Italy | 4.3 | |||
Japan | 11.2 | |||
Malaysia | 0.5 | |||
Mexico | 0.5 | |||
Netherlands | 0.3 | |||
New Zealand | 0.2 | |||
Philippines | 0.2 | |||
Poland | 0.2 | |||
Portugal | 0.0 | † | ||
Singapore | 0.1 | |||
South Africa | 0.3 | |||
South Korea | 0.0 | † | ||
Spain | 5.6 | |||
Switzerland | 0.3 | |||
Taiwan | 0.4 | |||
Thailand | 1.4 |
See Accompanying Notes to the Financial Statements.
212 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® STOXX® Global Broad Infrastructure Index Fund (cont.)
United Kingdom | 6.0 | % | ||
United States | 38.8 | |||
Other1 | 0.8 | |||
100.0 | % |
† Amount represents less than 0.05%.
1 Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 213 |
Table of Contents
Schedule of Investments
FlexShares® Global Quality Real Estate Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 97.9% | ||||||||
Diversified Financial Services – 0.2% | ||||||||
Corp. Financiera Alba SA | 7,482 | $ | 466,451 | |||||
Equity Real Estate Investment Trusts (REITs) – 70.5% | ||||||||
Abacus Property Group(a) | 249,603 | 682,054 | ||||||
AEON REIT Investment Corp.(a) | 696 | 721,919 | ||||||
American Homes 4 Rent, Class A | 108,141 | 2,184,448 | ||||||
Apple Hospitality REIT, Inc. | 101,181 | 1,820,246 | ||||||
Argosy Property Ltd. | 828,240 | 592,332 | ||||||
AvalonBay Communities, Inc. | 66,120 | 10,777,560 | ||||||
Beni Stabili SpA SIIQ(a) | 770,037 | 729,866 | ||||||
Big Yellow Group plc | 74,559 | 946,324 | ||||||
BWP Trust(a) | 274,572 | 648,726 | ||||||
Camden Property Trust | 1,566 | 133,736 | ||||||
Canadian Apartment Properties REIT | 33,582 | 970,301 | ||||||
Champion REIT | 957,000 | 677,975 | ||||||
Charter Hall Group | 138,504 | 616,843 | ||||||
Chesapeake Lodging Trust(a) | 28,449 | 840,383 | ||||||
Columbia Property Trust, Inc. | 56,811 | 1,213,483 | ||||||
CoreSite Realty Corp.(a) | 13,920 | 1,449,072 | ||||||
Cousins Properties, Inc. | 206,364 | 1,834,576 | ||||||
DCT Industrial Trust, Inc. | 36,366 | 2,384,519 | ||||||
DiamondRock Hospitality Co. | 94,656 | 1,045,949 | ||||||
Dream Global REIT | 68,991 | 736,758 | ||||||
Dream Office REIT | 4,698 | 87,147 | ||||||
Duke Realty Corp. | 171,390 | 4,644,669 | ||||||
EastGroup Properties, Inc.(a) | 16,095 | 1,445,009 | ||||||
Equinix, Inc. | 957 | 402,696 | ||||||
Equity Commonwealth* | 59,247 | 1,836,065 | ||||||
Equity LifeStyle Properties, Inc. | 40,455 | 3,606,968 | ||||||
Equity Residential | 178,524 | 11,016,716 | ||||||
Essex Property Trust, Inc. | 8,700 | 2,085,303 | ||||||
Eurocommercial Properties NV, CVA | 23,403 | 981,160 | ||||||
First Industrial Realty Trust, Inc.(a) | 57,159 | 1,778,216 | ||||||
Fonciere Des Regions | 16,530 | 1,850,364 | ||||||
Four Corners Property Trust, Inc. | 29,145 | 660,426 | ||||||
Frasers Centrepoint Trust | 400,200 | 677,050 | ||||||
Gecina SA | 23,577 | 4,090,551 | ||||||
Getty Realty Corp. | 23,403 | 586,245 | ||||||
Goodman Property Trust | 480,501 | 462,136 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
GPT Group (The) | 865,389 | $ | 3,161,676 | |||||
Granite REIT | 17,400 | 685,576 | ||||||
Green REIT plc | 386,628 | 709,094 | ||||||
Grivalia Properties REIC AE | 31,581 | 347,984 | ||||||
H&R REIT | 68,817 | 1,106,913 | ||||||
Hansteen Holdings plc | 322,335 | 589,590 | ||||||
Hersha Hospitality Trust | 36,453 | 684,587 | ||||||
Highwoods Properties, Inc. | 49,416 | 2,175,292 | ||||||
Hispania Activos Inmobiliarios SOCIMI SA | 54,114 | 1,150,697 | ||||||
Host Hotels & Resorts, Inc. | 356,961 | 6,982,157 | ||||||
Inmobiliaria Colonial Socimi SA(a) | 51,939 | 604,936 | ||||||
Investa Office Fund | 245,079 | 812,141 | ||||||
Killam Apartment REIT | 38,193 | 422,463 | ||||||
Kilroy Realty Corp. | 23,664 | 1,695,999 | ||||||
LaSalle Hotel Properties | 53,766 | 1,589,861 | ||||||
Liberty Property Trust | 70,731 | 2,957,970 | ||||||
Life Storage, Inc. | 22,881 | 2,023,596 | ||||||
Link REIT | 1,054,500 | 9,351,537 | ||||||
Mapletree Greater China Commercial Trust(b) | 887,400 | 797,557 | ||||||
Mapletree Industrial Trust | 609,000 | 933,703 | ||||||
MGM Growth Properties LLC, Class A(a) | 27,492 | 768,951 | ||||||
Mirvac Group | 139,983 | 236,692 | ||||||
Morguard REIT | 15,399 | 159,882 | ||||||
National Health Investors, Inc. | 19,749 | 1,348,264 | ||||||
Northview Apartment REIT | 2,697 | 53,669 | ||||||
Park Hotels & Resorts, Inc. | 76,995 | 2,215,916 | ||||||
Parkway Life REIT(a) | 295,800 | 623,301 | ||||||
Pebblebrook Hotel Trust(a) | 32,625 | 1,141,549 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 68,469 | 1,226,964 | ||||||
PotlatchDeltic Corp. | 19,836 | 1,028,497 | ||||||
Precinct Properties New Zealand Ltd. | 504,165 | 454,700 | ||||||
Prologis, Inc. | 210,453 | 13,660,505 | ||||||
PS Business Parks, Inc. | 9,657 | 1,113,259 | ||||||
Public Storage(a) | 1,305 | 263,323 | ||||||
Pure Industrial Real Estate Trust | 107,010 | 674,473 |
See Accompanying Notes to the Financial Statements.
214 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Global Quality Real Estate Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Ramco-Gershenson Properties Trust(a) | 57,507 | $ | 687,209 | |||||
Rayonier, Inc. | 63,162 | 2,348,995 | ||||||
Retail Properties of America, Inc., Class A | 112,056 | 1,293,126 | ||||||
RioCan REIT | 77,865 | 1,418,267 | ||||||
RLJ Lodging Trust | 1,218 | 25,298 | ||||||
Safestore Holdings plc | 110,055 | 830,682 | ||||||
Scentre Group | 1,911,216 | 5,814,006 | ||||||
Segro plc | 488,679 | 4,349,456 | ||||||
Shaftesbury plc(a) | 112,056 | 1,560,381 | ||||||
Shopping Centres Australasia Property Group(a) | 395,067 | 709,755 | ||||||
Simon Property Group, Inc. | 18,531 | 2,897,137 | ||||||
SmartCentres REIT | 31,494 | 707,537 | ||||||
Summit Hotel Properties, Inc. | 53,418 | 773,493 | ||||||
Sunlight REIT | 435,000 | 294,868 | ||||||
Sunstone Hotel Investors, Inc. | 107,358 | 1,674,785 | ||||||
Terreno Realty Corp. | 27,144 | 1,008,400 | ||||||
Unibail-Rodamco SE | 12,963 | 3,115,151 | ||||||
UNITE Group plc (The) | 118,929 | 1,365,330 | ||||||
Urstadt Biddle Properties, Inc., Class A | 31,407 | 624,057 | ||||||
Ventas, Inc. | 171,912 | 8,839,715 | ||||||
Weingarten Realty Investors(a) | 59,943 | 1,646,634 | ||||||
Wereldhave Belgium NV | 2,349 | 271,319 | ||||||
Westfield Corp. | 231,246 | 1,605,916 | ||||||
Weyerhaeuser Co. | 341,301 | 12,553,051 | ||||||
Workspace Group plc | 61,335 | 936,881 | ||||||
Xenia Hotels & Resorts, Inc. | 50,373 | 1,037,180 | ||||||
189,359,694 | ||||||||
Household Durables – 0.5% | ||||||||
Iida Group Holdings Co. Ltd.(a) | 69,600 | 1,361,787 | ||||||
Real Estate Management & Development – 26.7% | ||||||||
ADO Properties SA(b) | 14,877 | 818,913 | ||||||
Aeon Mall Co. Ltd.(a) | 56,300 | 1,141,178 | ||||||
Alrov Properties and Lodgings Ltd. | 9,918 | 336,582 | ||||||
CA Immobilien Anlagen AG(a) | 34,974 | 1,214,426 | ||||||
CapitaLand Ltd. | 1,235,400 | 3,508,254 |
Investments | Shares | Value | ||||||
Real Estate Management & Development – (continued) | ||||||||
City Developments Ltd. | 200,100 | $ | 1,914,782 | |||||
CK Asset Holdings Ltd. | 642,000 | 5,566,604 | ||||||
CLS Holdings plc | 112,752 | 388,247 | ||||||
Daejan Holdings plc | 4,263 | 352,299 | ||||||
Daibiru Corp. | 52,200 | 622,536 | ||||||
Daito Trust Construction Co. Ltd. | 34,800 | 5,805,565 | ||||||
Emperor International Holdings Ltd. | 870,000 | 264,938 | ||||||
Entra ASA(b) | 52,896 | 728,953 | ||||||
Fabege AB | 130,500 | 1,512,027 | ||||||
First Capital Realty, Inc. | 75,342 | 1,179,542 | ||||||
Forestar Group, Inc.* (a) | 23,316 | 508,289 | ||||||
Goldcrest Co. Ltd. | 26,100 | 555,035 | ||||||
GuocoLand Ltd.(a) | 217,500 | 356,463 | ||||||
Heiwa Real Estate Co. Ltd. | 34,800 | 816,055 | ||||||
Helical plc(a) | 72,732 | 375,665 | ||||||
Hemfosa Fastigheter AB | 70,470 | 876,946 | ||||||
Henderson Land Development Co. Ltd. | 577,300 | 3,681,568 | ||||||
HKR International Ltd.(a) | 556,800 | 339,830 | ||||||
Ho Bee Land Ltd. | 182,700 | 356,003 | ||||||
Hongkong Land Holdings Ltd. | 565,500 | 4,099,875 | ||||||
Immofinanz AG* | 405,594 | 1,065,344 | ||||||
Kenedix, Inc. | 121,800 | 705,700 | ||||||
Klovern AB, Class A(a) | 222,807 | 277,776 | ||||||
Kungsleden AB(a) | 15,312 | 109,109 | ||||||
Leopalace21 Corp. | 121,800 | 1,058,550 | ||||||
Liu Chong Hing Investment Ltd. | 348,000 | 561,358 | ||||||
Morguard Corp. | 2,523 | 323,653 | ||||||
Nomura Real Estate Holdings, Inc. | 60,900 | 1,512,691 | ||||||
Norstar Holdings, Inc. | 14,703 | 259,864 | ||||||
Norwegian Property ASA | 427,170 | 536,422 | ||||||
NTT Urban Development Corp. | 60,900 | 718,500 | ||||||
Olav Thon Eiendomsselskap ASA | 15,225 | 276,711 | ||||||
PATRIZIA Immobilien AG* | 30,189 | 604,745 | ||||||
Raven Russia Ltd.* | 420,297 | 263,398 | ||||||
Realogy Holdings Corp.(a) | 435 | 10,792 | ||||||
Relo Group, Inc. | 36,500 | 822,563 | ||||||
Sagax AB (Preference)(a) | 61,857 | 247,626 | ||||||
Soundwill Holdings Ltd. | 130,500 | 233,123 | ||||||
St Joe Co. (The)* | 34,974 | 603,302 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 215 |
Table of Contents
FlexShares® Global Quality Real Estate Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Real Estate Management & Development – (continued) | ||||||||
St Modwen Properties plc | 124,758 | $ | 704,869 | |||||
Sumitomo Realty & Development Co. Ltd. | 174,000 | 6,915,476 | ||||||
Swire Pacific Ltd., Class A | 238,000 | 2,365,368 | ||||||
Swire Pacific Ltd., Class B | 435,000 | 736,062 | ||||||
Swire Properties Ltd. | 539,400 | 1,920,967 | ||||||
TAG Immobilien AG | 59,682 | 1,261,165 | ||||||
Technopolis OYJ | 91,263 | 428,376 | ||||||
Tejon Ranch Co.* (a) | 28,362 | 690,047 | ||||||
Tokyo Tatemono Co. Ltd. | 101,400 | 1,544,746 | ||||||
Tokyu Fudosan Holdings Corp. | 252,300 | 1,987,504 | ||||||
UOL Group Ltd. | 234,975 | 1,563,483 | ||||||
Vonovia SE | 42,195 | 2,121,278 | ||||||
Wihlborgs Fastigheter AB | 34,974 | 814,447 | ||||||
Wing Tai Holdings Ltd.(a) | 391,500 | 603,195 | ||||||
Yanlord Land Group Ltd. | 469,800 | 603,195 | ||||||
71,771,980 | ||||||||
Total Common Stocks (Cost $236,196,701) | 262,959,912 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(c) – 1.4% | ||||||||
REPURCHASE AGREEMENTS – 1.4% | ||||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $300,016, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $327,377 | $ | 300,000 | 300,000 |
Investments | Principal Amount | Value | ||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $2,770,251, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $2,808,295 | $ | 2,770,119 | $ | 2,770,119 | ||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $150,008, collateralized by various Common Stocks; total market value $167,773 | 150,000 | 150,000 | ||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $500,026, collateralized by various Common Stocks; total market value $552,303 | 500,000 | 500,000 | ||||||
3,720,119 | ||||||||
Total Securities Lending Reinvestments (Cost $3,720,119) | 3,720,119 | |||||||
Total Investments – 99.3% (Cost $239,916,820) | 266,680,031 | |||||||
Other Assets Less Liabilities – 0.7% |
| 1,887,439 | ||||||
NET ASSETS – 100.0% | $ | 268,567,470 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $15,983,236, collateralized in the form of cash with a value of $3,720,119 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $7,143,246 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 3, 2018 – February 15, 2048 and $5,992,380 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from May 8, 2018 – November 2, 2086; a total value of $16,855,745. |
See Accompanying Notes to the Financial Statements.
216 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Global Quality Real Estate Index Fund (cont.)
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $3,720,119. |
Percentages shown are based on Net Assets.
Abbreviations
CVA – Dutch Certification
OYJ – Public Limited Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
As of April 30, 2018, 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 | $ | 32,123,887 | ||
Aggregate gross unrealized depreciation | (6,384,119 | ) | ||
Net unrealized appreciation | $ | 25,739,768 | ||
Federal income tax cost | $ | 240,963,657 |
Futures Contracts
FlexShares® Global Quality Real Estate Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index | 7 | 06/15/2018 | EUR | $ | 293,810 | $ | 12,740 | |||||||||||||
FTSE 100 Index | 1 | 06/15/2018 | GBP | 102,750 | 7,000 | |||||||||||||||
Hang Seng Index | 3 | 05/30/2018 | HKD | 586,086 | 9,716 | |||||||||||||||
S&P 500 E-Mini Index | 24 | 06/15/2018 | USD | 3,176,400 | (84,080 | ) | ||||||||||||||
S&P/TSX 60 Index | 1 | 06/14/2018 | CAD | 143,516 | 4,039 | |||||||||||||||
SGX Nikkei 225 Index | 9 | 06/07/2018 | JPY | 925,908 | 56,453 | |||||||||||||||
SPI 200 Index | 9 | 06/21/2018 | AUD | 1,013,273 | 9,790 | |||||||||||||||
$ | 15,658 |
* | 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® Global Quality Real Estate Index Fund had the following outstanding contracts as of April 30, 2018: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 630,000 | Toronto-Dominion Bank (The) | CAD | 790,922 | 06/20/2018 | $ | 12,297 | |||||||||||||||
Total unrealized appreciation |
| $ | 12,297 | |||||||||||||||||||
EUR | 114,854 | Citibank NA | USD | 142,782 | 06/20/2018 | $ | (3,483 | ) | ||||||||||||||
HKD | 783,523 | Citibank NA | USD | 100,237 | 06/20/2018 | (284 | ) | |||||||||||||||
SGD | 96,492 | Citibank NA | USD | 73,751 | 06/20/2018 | (794 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (4,561 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 7,736 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 217 |
Table of Contents
FlexShares® Global Quality Real Estate Index Fund (cont.)
Abbreviations:
AUD – Australian Dollar
CAD – Canadian Dollar
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
JPY – Japanese Yen
SGD – Singapore Dollar
USD – US Dollar
FlexShares® Global Quality Real Estate Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 5.3 | % | ||
Austria | 0.8 | |||
Belgium | 0.1 | |||
Canada | 3.2 | |||
Finland | 0.2 | |||
France | 2.2 | |||
Germany | 1.8 | |||
Greece | 0.1 | |||
Hong Kong | 9.7 | |||
Ireland | 0.3 | |||
Israel | 0.2 | |||
Italy | 0.3 | |||
Japan | 9.8 | |||
Netherlands | 1.5 | |||
New Zealand | 0.6 | |||
Norway | 0.6 | |||
Singapore | 6.0 | |||
Spain | 0.8 | |||
Sweden | 1.4 | |||
United Kingdom | 4.7 | |||
United States | 48.3 | |||
Other1 | 2.1 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
218 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Real Assets Allocation Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS – 100.0% | ||||||||
FlexShares Global Quality Real Estate Index Fund(a) | 77,112 | $ | 4,757,040 | |||||
FlexShares Global Upstream Natural Resources Index Fund(a) | 35,020 | 1,189,279 | ||||||
FlexShares STOXX Global Broad Infrastructure Index Fund(a) | 126,344 | 5,890,157 | ||||||
Total Exchange Traded Funds (Cost $11,652,909) | 11,836,476 | |||||||
Total Investments – 100.0% (Cost $11,652,909) | 11,836,476 | |||||||
Other Assets Less Liabilities – 0.0%(b) |
| 1,449 | ||||||
NET ASSETS – 100.0% | $ | 11,837,925 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Funds. |
(b) | Represents less than 0.05% of net assets. |
Percentages shown are based on Net Assets.
As of April 30, 2018, 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 | $ | 218,179 | ||
Aggregate gross unrealized depreciation | (38,718 | ) | ||
Net unrealized appreciation | $ | 179,461 | ||
Federal income tax cost | $ | 11,657,015 |
The underlying index of the FlexShares Real Assets Allocation Index Fund is comprised of securities of affiliated FlexShares Funds. The Schedules of Investments of the affiliated FlexShares Funds are located elsewhere in this Report.
Investment in a company which was affiliated for the period ending April 30, 2018, was as follows:
Security | Value October 31, 2017 | Purchases at Cost | Sales Proceeds | Shares April 30, 2018 | Value April 30, 2018 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain/(Loss) | ||||||||||||||||||||||||
FlexShares Global Quality Real Estate Index Fund | $ | 2,485,751 | $ | 2,336,351 | $ | 42,250 | 77,112 | $ | 4,757,040 | $ | (21,445 | ) | $ | 42,647 | $ | (1,367 | ) | |||||||||||||||
FlexShares Global Upstream Natural Resources Index Fund | 680,722 | 646,623 | 201,049 | 35,020 | 1,189,279 | 68,959 | 9,488 | (5,976 | ) | |||||||||||||||||||||||
FlexShares STOXX Global Broad Infrastructure Index Fund | 3,151,901 | 2,949,827 | 53,755 | 126,344 | 5,890,157 | (155,918 | ) | 54,143 | (1,898 | ) | ||||||||||||||||||||||
$ | 6,318,374 | $ | 5,932,801 | $ | 297,054 | 238,476 | $ | 11,836,476 | $ | (108,404 | ) | $ | 106,278 | $ | (9,241 | ) |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 219 |
Table of Contents
Schedule of Investments
FlexShares® Quality Dividend Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.4% | ||||||||
Aerospace & Defense – 5.1% | ||||||||
Boeing Co. (The) | 192,970 | $ | 64,367,072 | |||||
Lockheed Martin Corp. | 94,807 | 30,417,878 | ||||||
94,784,950 | ||||||||
Automobiles – 0.4% | ||||||||
Thor Industries, Inc. | 69,637 | 7,391,271 | ||||||
Banks – 5.1% | ||||||||
Bank of America Corp. | 401,042 | 11,999,177 | ||||||
Citigroup, Inc. | 89,773 | 6,128,803 | ||||||
JPMorgan Chase & Co. | 209,750 | 22,816,605 | ||||||
Wells Fargo & Co. | 1,037,843 | 53,926,322 | ||||||
94,870,907 | ||||||||
Beverages – 0.5% | ||||||||
Coca-Cola Co. (The) | 99,002 | 4,277,876 | ||||||
PepsiCo, Inc. | 41,950 | 4,234,433 | ||||||
8,512,309 | ||||||||
Biotechnology – 1.4% | ||||||||
AbbVie, Inc. | 268,480 | 25,921,744 | ||||||
Capital Markets – 4.2% | ||||||||
Ameriprise Financial, Inc. | 78,027 | 10,940,166 | ||||||
BGC Partners, Inc., Class A | 514,307 | 6,871,142 | ||||||
Eaton Vance Corp.(a) | 169,478 | 9,217,908 | ||||||
Federated Investors, Inc., Class B | 390,135 | 10,326,873 | ||||||
Lazard Ltd., Class A | 191,292 | 10,410,111 | ||||||
LPL Financial Holdings, Inc.(a) | 208,072 | 12,602,921 | ||||||
T. Rowe Price Group, Inc.(a) | 147,664 | 16,807,116 | ||||||
77,176,237 | ||||||||
Chemicals – 0.8% | ||||||||
LyondellBasell Industries NV, Class A | 136,757 | 14,459,318 | ||||||
Communications Equipment – 1.7% | ||||||||
Cisco Systems, Inc. | 280,226 | 12,411,210 | ||||||
InterDigital, Inc.(a) | 137,596 | 10,244,022 |
Investments | Shares | Value | ||||||
Communications Equipment – (continued) | ||||||||
Juniper Networks, Inc. | 370,838 | $ | 9,118,906 | |||||
31,774,138 | ||||||||
Consumer Finance – 0.5% | ||||||||
Navient Corp. | 715,667 | 9,489,744 | ||||||
Containers & Packaging – 0.5% | ||||||||
Greif, Inc., Class A(a) | 37,796 | 2,211,822 | ||||||
Greif, Inc., Class B | 102,358 | 6,443,436 | ||||||
Packaging Corp. of America | 5,563 | 643,584 | ||||||
9,298,842 | ||||||||
Diversified Consumer Services – 0.5% | ||||||||
H&R Block, Inc.(a) | 359,092 | 9,928,894 | ||||||
Diversified Telecommunication Services – 3.0% | ||||||||
AT&T, Inc. | 272,675 | 8,916,472 | ||||||
Verizon Communications, Inc. | 926,256 | 45,710,734 | ||||||
54,627,206 | ||||||||
Electric Utilities – 2.5% | ||||||||
ALLETE, Inc.(a) | 212,267 | 16,219,322 | ||||||
Edison International | 195,487 | 12,808,308 | ||||||
Exelon Corp. | 262,607 | 10,420,246 | ||||||
Hawaiian Electric Industries, Inc. | 210,589 | 7,305,332 | ||||||
46,753,208 | ||||||||
Electronic Equipment, Instruments & Components – 1.6% | ||||||||
Avnet, Inc. | 293,650 | 11,519,889 | ||||||
CDW Corp. | 122,494 | 8,732,597 | ||||||
Jabil, Inc.(a) | 351,541 | 9,350,991 | ||||||
29,603,477 | ||||||||
Energy Equipment & Services – 0.5% | ||||||||
RPC, Inc.(a) | 476,552 | 8,582,702 | ||||||
Equity Real Estate Investment Trusts (REITs) – 4.9% | ||||||||
Apple Hospitality REIT, Inc. | 88,934 | 1,599,923 | ||||||
CoreCivic, Inc. | 437,958 | 8,829,233 | ||||||
DDR Corp.(a) | 1,505,166 | 10,912,454 | ||||||
Gaming and Leisure Properties, Inc. | 203,877 | 6,986,865 |
See Accompanying Notes to the Financial Statements.
220 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Hospitality Properties Trust | 55,374 | $ | 1,377,705 | |||||
Host Hotels & Resorts, Inc. | 718,184 | 14,047,679 | ||||||
Kimco Realty Corp. | 270,997 | 3,932,166 | ||||||
Lamar Advertising Co., Class A(a) | 155,215 | 9,888,748 | ||||||
LaSalle Hotel Properties | 45,306 | 1,339,698 | ||||||
Outfront Media, Inc.(a) | 463,128 | 8,683,650 | ||||||
Park Hotels & Resorts, Inc. | 62,086 | 1,786,835 | ||||||
Retail Properties of America, Inc., Class A | 48,662 | 561,560 | ||||||
Senior Housing Properties Trust(a) | 63,764 | 992,806 | ||||||
Simon Property Group, Inc.(a) | 59,569 | 9,313,017 | ||||||
Spirit Realty Capital, Inc. | 865,848 | 6,970,076 | ||||||
Ventas, Inc. | 55,374 | 2,847,331 | ||||||
90,069,746 | ||||||||
Food & Staples Retailing – 3.3% | ||||||||
CVS Health Corp. | 192,131 | 13,416,508 | ||||||
Walmart, Inc. | 531,087 | 46,979,956 | ||||||
60,396,464 | ||||||||
Gas Utilities – 0.1% | ||||||||
National Fuel Gas Co. | 40,272 | 2,067,967 | ||||||
Health Care Providers & Services – 1.8% | ||||||||
Anthem, Inc.(a) | 43,628 | 10,295,772 | ||||||
McKesson Corp. | 67,120 | 10,484,815 | ||||||
Patterson Cos., Inc.(a) | 48,662 | 1,132,851 | ||||||
UnitedHealth Group, Inc. | 44,467 | 10,511,999 | ||||||
32,425,437 | ||||||||
Hotels, Restaurants & Leisure – 0.5% | ||||||||
Darden Restaurants, Inc. | 7,612 | 706,850 | ||||||
Las Vegas Sands Corp. | 115,782 | 8,490,294 | ||||||
9,197,144 | ||||||||
Household Durables – 0.1% | ||||||||
Tupperware Brands Corp.(a) | 46,984 | 2,093,607 | ||||||
Household Products – 0.5% | ||||||||
Clorox Co. (The) | 22,653 | 2,654,932 |
Investments | Shares | Value | ||||||
Household Products – (continued) | ||||||||
Procter & Gamble Co. (The) | 78,866 | $ | 5,705,166 | |||||
8,360,098 | ||||||||
Independent Power and Renewable Electricity Producers – 0.1% | ||||||||
NRG Yield, Inc., Class C(a) | 95,646 | 1,702,499 | ||||||
Industrial Conglomerates – 3.0% | ||||||||
3M Co. | 209,750 | 40,773,303 | ||||||
General Electric Co.(a) | 1,099,929 | 15,476,001 | ||||||
56,249,304 | ||||||||
Insurance – 3.0% | ||||||||
Aflac, Inc. | 293,650 | 13,381,631 | ||||||
Allstate Corp. (The) | 106,553 | 10,423,014 | ||||||
Erie Indemnity Co., Class A | 75,510 | 8,817,303 | ||||||
First American Financial Corp. | 16,267 | 831,406 | ||||||
Principal Financial Group, Inc. | 203,877 | 12,073,596 | ||||||
Travelers Cos., Inc. (The) | 81,383 | 10,710,003 | ||||||
56,236,953 | ||||||||
Internet Software & Services – 0.3% | ||||||||
j2 Global, Inc.(a) | 81,383 | 6,460,183 | ||||||
IT Services – 6.3% | ||||||||
Accenture plc, Class A | 218,140 | 32,982,768 | ||||||
Broadridge Financial Solutions, Inc. | 89,773 | 9,624,563 | ||||||
Fidelity National Information Services, Inc. | 101,519 | 9,641,259 | ||||||
International Business Machines Corp. | 116,621 | 16,905,380 | ||||||
Jack Henry & Associates, Inc. | 102,358 | 12,229,734 | ||||||
Science Applications International Corp. | 130,884 | 11,228,538 | ||||||
Total System Services, Inc. | 93,968 | 7,898,950 | ||||||
Visa, Inc., Class A | 46,145 | 5,854,878 | ||||||
Western Union Co. (The)(a) | 535,282 | 10,571,820 | ||||||
116,937,890 | ||||||||
Media – 0.5% | ||||||||
Comcast Corp., Class A | 77,188 | 2,422,931 | ||||||
Omnicom Group, Inc. | 78,027 | 5,747,469 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 221 |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Media – (continued) | ||||||||
Walt Disney Co. (The) | 8,390 | $ | 841,769 | |||||
9,012,169 | ||||||||
Metals & Mining – 0.5% | ||||||||
Steel Dynamics, Inc.(a) | 226,530 | 10,150,809 | ||||||
Mortgage Real Estate Investment Trusts (REITs) – 2.1% | ||||||||
AGNC Investment Corp. | 366,643 | 6,936,886 | ||||||
Annaly Capital Management, Inc.(a) | 233,242 | 2,418,719 | ||||||
Chimera Investment Corp.(a) | 884,306 | 15,466,512 | ||||||
MFA Financial, Inc. | 161,927 | 1,217,691 | ||||||
Starwood Property Trust, Inc.(a) | 485,781 | 10,181,970 | ||||||
Two Harbors Investment Corp. | 128,367 | 1,958,880 | ||||||
38,180,658 | ||||||||
Multiline Retail – 2.4% | ||||||||
Kohl’s Corp. | 242,471 | 15,062,299 | ||||||
Macy’s, Inc.(a) | 437,119 | 13,581,287 | ||||||
Nordstrom, Inc.(a) | 163,605 | 8,271,869 | ||||||
Target Corp. | 115,782 | 8,405,773 | ||||||
45,321,228 | ||||||||
Multi-Utilities – 2.9% | ||||||||
CenterPoint Energy, Inc.(a) | 537,799 | 13,622,449 | ||||||
MDU Resources Group, Inc. | 452,221 | 12,739,066 | ||||||
NorthWestern Corp. | 280,226 | 15,395,616 | ||||||
Vectren Corp. | 180,385 | 12,675,654 | ||||||
54,432,785 | ||||||||
Oil, Gas & Consumable Fuels – 8.9% | ||||||||
Cheniere Energy Partners LP Holdings LLC(a) | 43,628 | 1,217,221 | ||||||
Chevron Corp. | 240,793 | 30,125,612 | ||||||
Delek US Energy, Inc.(a) | 133,848 | 6,340,380 | ||||||
Exxon Mobil Corp. | 649,386 | 50,489,761 | ||||||
HollyFrontier Corp. | 301,201 | 18,279,889 | ||||||
Occidental Petroleum Corp. | 54,535 | 4,213,374 | ||||||
ONEOK, Inc.(a) | 39,463 | 2,376,462 | ||||||
PBF Energy, Inc., Class A | 398,525 | 15,275,463 | ||||||
Phillips 66 | 156,893 | 17,463,760 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Valero Energy Corp. | 172,834 | $ | 19,172,476 | |||||
164,954,398 | ||||||||
Paper & Forest Products – 0.6% | ||||||||
Domtar Corp.(a) | 234,920 | 10,312,988 | ||||||
Pharmaceuticals – 6.9% | ||||||||
Johnson & Johnson | 152,698 | 19,314,770 | ||||||
Merck & Co., Inc. | 795,372 | 46,823,550 | ||||||
Pfizer, Inc. | 1,690,585 | 61,892,317 | ||||||
128,030,637 | ||||||||
Road & Rail – 1.9% | ||||||||
Union Pacific Corp. | 266,802 | 35,652,751 | ||||||
Semiconductors & Semiconductor Equipment – 3.4% | ||||||||
KLA-Tencor Corp. | 104,036 | 10,584,623 | ||||||
Lam Research Corp.(a) | 54,535 | 10,092,247 | ||||||
Maxim Integrated Products, Inc. | 4,295 | 234,077 | ||||||
MKS Instruments, Inc. | 72,154 | 7,388,570 | ||||||
Texas Instruments, Inc. | 346,507 | 35,146,205 | ||||||
63,445,722 | ||||||||
Software – 2.2% | ||||||||
Activision Blizzard, Inc. | 226,530 | 15,030,265 | ||||||
Blackbaud, Inc. | 4,195 | 440,307 | ||||||
Intuit, Inc. | 63,764 | 11,782,950 | ||||||
SS&C Technologies Holdings, Inc. | 190,453 | 9,455,991 | ||||||
Symantec Corp. | 160,249 | 4,453,320 | ||||||
41,162,833 | ||||||||
Specialty Retail – 5.3% | ||||||||
Best Buy Co., Inc.(a) | 248,344 | 19,005,766 | ||||||
Foot Locker, Inc. | 221,496 | 9,542,048 | ||||||
Gap, Inc. (The)(a) | 452,221 | 13,222,942 | ||||||
Home Depot, Inc. (The) | 262,607 | 48,529,773 | ||||||
Williams-Sonoma, Inc.(a) | 166,961 | 7,980,736 | ||||||
98,281,265 | ||||||||
Technology Hardware, Storage & Peripherals – 5.5% | ||||||||
Apple, Inc. | 327,210 | 54,074,725 | ||||||
HP, Inc. | 713,150 | 15,325,593 | ||||||
NetApp, Inc. | 122,837 | 8,178,487 |
See Accompanying Notes to the Financial Statements.
222 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Technology Hardware, Storage & Peripherals – (continued) | ||||||||
Seagate Technology plc(a) | 261,768 | $ | 15,153,750 | |||||
Xerox Corp. | 270,997 | 8,522,856 | ||||||
101,255,411 | ||||||||
Textiles, Apparel & Luxury Goods – 0.3% | ||||||||
VF Corp.(a) | 62,086 | 5,020,895 | ||||||
Tobacco – 1.4% | ||||||||
Altria Group, Inc. | 376,711 | 21,137,254 | ||||||
Philip Morris International, Inc. | 61,247 | 5,022,254 | ||||||
26,159,508 | ||||||||
Trading Companies & Distributors – 1.4% | ||||||||
Fastenal Co.(a) | 215,623 | 10,778,994 | ||||||
WW Grainger, Inc. | 52,018 | 14,635,264 | ||||||
25,414,258 | ||||||||
Total Common Stocks (Cost $1,501,633,775) | 1,822,160,554 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(b) – 8.0% | ||||||||
BANK NOTES – 0.1% | ||||||||
Bank of America NA, Charlotte | $ | 2,000,000 | 2,000,000 | |||||
CERTIFICATES OF DEPOSIT – 3.0% | ||||||||
Bank of Nova Scotia, Houston | 3,000,000 | 3,000,000 | ||||||
Barclays Bank plc, New York | 3,000,000 | 2,999,844 |
Investments | Principal Amount | Value | ||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Canadian Imperial Bank of Commerce, New York | $ | 4,000,000 | $ | 4,001,348 | ||||
Citibank NA, New York | 4,000,000 | 3,999,536 | ||||||
Cooperatieve Rabobank UA, London | 2,000,000 | 2,000,000 | ||||||
Credit Agricole CIB, New York | 3,000,000 | 2,999,652 | ||||||
Credit Industriel et Commercial, London 2.54%, 10/25/2018 | 3,000,000 | 2,962,876 | ||||||
Natixis SA, New York 2.22%, 6/11/2018 | 3,000,000 | 3,000,000 | ||||||
Royal Bank of Canada | 4,000,000 | 4,000,584 | ||||||
Societe Generale, New York | 3,000,000 | 3,000,000 | ||||||
Standard Chartered, New York | 2,000,000 | 2,000,000 | ||||||
State Street Bank & Trust | 4,000,000 | 4,000,000 | ||||||
Sumitomo Mitsui Trust Bank Ltd., London | 3,000,000 | 3,000,000 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 223 |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
CERTIFICATES OF DEPOSIT – (continued) | ||||||||
Svenska Handelsbanken, New York | $ | 4,000,000 | $ | 4,001,128 | ||||
The Chiba Bank Ltd., | 2,000,000 | 2,000,000 | ||||||
The Sumitomo Bank Ltd., New York | 2,000,000 | 1,999,430 | ||||||
Toronto-Dominion Bank, New York | 2,000,000 | 2,000,000 | ||||||
Wells Fargo Bank (San Francisco) NA (ICE LIBOR USD 3 Month + 0.14%), | 2,000,000 | 2,001,389 | ||||||
Westpac Banking Corp., New York | 3,000,000 | 2,999,760 | ||||||
Total Certificates of Deposit (Cost $55,963,084) | 55,965,547 | |||||||
COMMERCIAL PAPER – 0.6% | ||||||||
ING (US) Funding LLC | 2,000,000 | 1,999,496 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 4,000,000 | 3,999,803 |
Investments | Principal Amount | Value | ||||||
COMMERCIAL PAPER – (continued) | ||||||||
Union Bank of Switzerland (ICE LIBOR USD 1 Month + 0.21%), 2.09%, 5/2/2018(c) (d) | $ | 4,000,000 | $ | 4,000,000 | ||||
Total Commercial Paper (Cost $9,999,803) | 9,999,299 | |||||||
FUNDING AGREEMENTS – 0.2% | ||||||||
United of Omaha Life Insurance | 4,000,000 | 4,000,000 | ||||||
REPURCHASE AGREEMENTS – 4.1% | ||||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $3,000,162, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $3,273,774 | 3,000,000 | 3,000,000 | ||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $17,450,413, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $17,690,065 | 17,449,584 | 17,449,584 | ||||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $7,000,377, collateralized by various Common Stocks; total market value $7,829,415 | 7,000,000 | 7,000,000 |
See Accompanying Notes to the Financial Statements.
224 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Mizuho Securities USA, Inc., 1.72%, dated 4/30/2018, due 5/1/2018, repurchase price $20,000,955, collateralized by various U.S. Treasury Securities, ranging from 1.00% – 2.75%, maturing 6/30/2019 – 2/15/2028; total market value $20,325,510 | $ | 20,000,000 | $ | 20,000,000 | ||||
ML Pierce Fenner & Smith, Inc., 2.24%, dated 4/30/2018, due 7/31/2018, repurchase price $8,045,796, collateralized by various Common Stocks; total market value $8,731,017 | 8,000,000 | 8,000,000 | ||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $19,716,776, collateralized by various Common Stocks; total market value $21,778,133 | 19,715,757 | 19,715,757 | ||||||
Total Repurchase Agreements (Cost $75,165,341) | 75,165,341 | |||||||
Total Securities Lending Reinvestments (Cost $147,128,228) | 147,130,187 | |||||||
Total Investments – 106.4% (Cost $1,648,762,003) | 1,969,290,741 | |||||||
Liabilities in excess of other assets – (6.4%) |
| (118,006,346 | ) | |||||
NET ASSETS – 100.0% | $ | 1,851,284,395 |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $175,122,784, collateralized in the form of cash with a value of $147,126,807 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $26,902,342 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 3, 2018 – February 15, 2048 and $8,283,891 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from May 8, 2018 – July 22, 2068; a total value of $182,313,040. |
(b) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $147,130,187. |
(c) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2018. |
(d) | Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration normally to qualified institutional buyers. |
Percentages shown are based on Net Assets.
Abbreviations
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
USD – US Dollar
As of April 30, 2018, 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 | $ | 351,904,097 | ||
Aggregate gross unrealized depreciation | (31,495,072 | ) | ||
Net unrealized appreciation | $ | 320,409,025 | ||
Federal income tax cost | $ | 1,648,192,428 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 225 |
Table of Contents
FlexShares® Quality Dividend Index Fund (cont.)
Futures Contracts
FlexShares® Quality Dividend Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Depreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500 E-Mini Index | 219 | 06/15/2018 | USD | $ | 28,984,650 | $ | (689,288 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
226 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Quality Dividend Defensive Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.2% | ||||||||
Aerospace & Defense – 5.2% | ||||||||
Boeing Co. (The) | 31,360 | $ | 10,460,441 | |||||
Lockheed Martin Corp. | 16,240 | 5,210,442 | ||||||
15,670,883 | ||||||||
Air Freight & Logistics – 1.1% | ||||||||
CH Robinson Worldwide, Inc.(a) | 12,180 | 1,120,926 | ||||||
United Parcel Service, Inc., Class B | 19,040 | 2,161,040 | ||||||
3,281,966 | ||||||||
Banks – 5.5% | ||||||||
Bank of America Corp. | 62,720 | 1,876,582 | ||||||
Bank of Hawaii Corp.(a) | 18,340 | 1,544,411 | ||||||
Citigroup, Inc. | 19,180 | 1,309,419 | ||||||
JPMorgan Chase & Co. | 27,720 | 3,015,382 | ||||||
Wells Fargo & Co. | 171,780 | 8,925,689 | ||||||
16,671,483 | ||||||||
Beverages – 0.4% | ||||||||
Coca-Cola Co. (The) | 11,200 | 483,952 | ||||||
PepsiCo, Inc. | 8,820 | 890,291 | ||||||
1,374,243 | ||||||||
Biotechnology – 0.1% | ||||||||
AbbVie, Inc. | 3,220 | 310,891 | ||||||
Capital Markets – 1.7% | ||||||||
BGC Partners, Inc., Class A | 108,220 | 1,445,819 | ||||||
Intercontinental Exchange, Inc. | 1,960 | 142,021 | ||||||
MSCI, Inc. | 10,360 | 1,552,239 | ||||||
T. Rowe Price Group, Inc. | 11,480 | 1,306,654 | ||||||
Virtu Financial, Inc., Class A(a) | 17,568 | 632,448 | ||||||
5,079,181 | ||||||||
Chemicals – 0.9% | ||||||||
LyondellBasell Industries NV, Class A | 23,100 | 2,442,363 | ||||||
Scotts Miracle-Gro Co. (The) | 2,800 | 234,024 | ||||||
2,676,387 |
Investments | Shares | Value | ||||||
Commercial Services & Supplies – 0.5% | ||||||||
Rollins, Inc.(a) | 31,080 | $ | 1,508,002 | |||||
Communications Equipment – 3.0% | ||||||||
Cisco Systems, Inc. | 95,340 | 4,222,609 | ||||||
InterDigital, Inc. | 19,460 | 1,448,797 | ||||||
Juniper Networks, Inc. | 58,380 | 1,435,564 | ||||||
Motorola Solutions, Inc. | 17,220 | 1,891,273 | ||||||
8,998,243 | ||||||||
Consumer Finance – 0.1% | ||||||||
Navient Corp. | 21,420 | 284,029 | ||||||
Containers & Packaging – 0.4% | ||||||||
Greif, Inc., Class B | 17,080 | 1,075,186 | ||||||
Diversified Consumer Services – 0.6% | ||||||||
H&R Block, Inc.(a) | 70,560 | 1,950,984 | ||||||
Diversified Telecommunication Services – 3.5% | ||||||||
AT&T, Inc. | 74,480 | 2,435,496 | ||||||
Verizon Communications, Inc. | 168,280 | 8,304,618 | ||||||
10,740,114 | ||||||||
Electric Utilities – 3.7% | ||||||||
ALLETE, Inc. | 30,660 | 2,342,731 | ||||||
American Electric Power Co., Inc. | 19,460 | 1,361,811 | ||||||
Edison International | 8,680 | 568,714 | ||||||
Exelon Corp. | 59,780 | 2,372,070 | ||||||
Hawaiian Electric Industries, Inc. | 41,300 | 1,432,697 | ||||||
PNM Resources, Inc. | 45,640 | 1,809,626 | ||||||
Portland General Electric Co. | 7,980 | 338,990 | ||||||
Xcel Energy, Inc. | 22,960 | 1,075,446 | ||||||
11,302,085 | ||||||||
Electronic Equipment, Instruments & Components – 1.6% | ||||||||
Avnet, Inc. | 35,420 | 1,389,527 | ||||||
CDW Corp. | 21,700 | 1,546,993 | ||||||
FLIR Systems, Inc. | 2,304 | 123,379 | ||||||
Jabil, Inc. | 68,040 | 1,809,864 | ||||||
4,869,763 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 227 |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – 4.0% | ||||||||
Apple Hospitality REIT, Inc. | 16,100 | $ | 289,639 | |||||
CoreCivic, Inc. | 9,240 | 186,278 | ||||||
DDR Corp. | 255,640 | 1,853,390 | ||||||
Hospitality Properties Trust | 6,720 | 167,194 | ||||||
Kimco Realty Corp. | 155,120 | 2,250,791 | ||||||
LaSalle Hotel Properties | 8,400 | 248,388 | ||||||
National Health Investors, Inc.(a) | 2,380 | 162,483 | ||||||
Outfront Media, Inc. | 82,320 | 1,543,500 | ||||||
Park Hotels & Resorts, Inc. | 10,500 | 302,190 | ||||||
Retail Properties of America, Inc., Class A | 33,600 | 387,744 | ||||||
Ryman Hospitality Properties, Inc.(a) | 34,860 | 2,732,327 | ||||||
Senior Housing Properties Trust(a) | 9,520 | 148,226 | ||||||
Spirit Realty Capital, Inc. | 171,360 | 1,379,448 | ||||||
Ventas, Inc. | 9,240 | 475,121 | ||||||
12,126,719 | ||||||||
Food & Staples Retailing – 3.9% | ||||||||
CVS Health Corp. | 57,680 | 4,027,794 | ||||||
Walmart, Inc. | 87,780 | 7,765,019 | ||||||
11,792,813 | ||||||||
Food Products – 0.9% | ||||||||
Conagra Brands, Inc. | 47,040 | 1,743,773 | ||||||
Hershey Co. (The)(a) | 9,940 | 913,883 | ||||||
2,657,656 | ||||||||
Gas Utilities – 0.1% | ||||||||
New Jersey Resources Corp. | 9,380 | 387,863 | ||||||
ONE Gas, Inc. | 560 | 39,043 | ||||||
426,906 | ||||||||
Health Care Providers & Services – 3.9% | ||||||||
Aetna, Inc. | 16,520 | 2,957,906 | ||||||
Anthem, Inc.(a) | 15,260 | 3,601,207 | ||||||
Patterson Cos., Inc. | 47,320 | 1,101,610 | ||||||
UnitedHealth Group, Inc. | 17,920 | 4,236,288 | ||||||
11,897,011 |
Investments | Shares | Value | ||||||
Hotels, Restaurants & Leisure – 2.3% | ||||||||
Cracker Barrel Old Country Store, Inc. | 9,940 | $ | 1,636,025 | |||||
Darden Restaurants, Inc. | 4,752 | 441,271 | ||||||
Domino’s Pizza, Inc. | 7,140 | 1,725,952 | ||||||
Dunkin’ Brands Group, Inc.(a) | 27,020 | 1,647,139 | ||||||
Jack in the Box, Inc. | 560 | 50,232 | ||||||
McDonald’s Corp. | 9,660 | 1,617,470 | ||||||
7,118,089 | ||||||||
Household Durables – 0.1% | ||||||||
Tupperware Brands Corp. | 6,440 | 286,966 | ||||||
Household Products – 2.5% | ||||||||
Clorox Co. (The) | 14,560 | 1,706,432 | ||||||
Colgate-Palmolive Co. | 50,400 | 3,287,592 | ||||||
Kimberly-Clark Corp. | 22,400 | 2,319,296 | ||||||
Procter & Gamble Co. (The) | 4,060 | 293,700 | ||||||
7,607,020 | ||||||||
Industrial Conglomerates – 0.1% | ||||||||
3M Co. | 1,260 | 244,931 | ||||||
Insurance – 2.5% | ||||||||
Aflac, Inc. | 43,960 | 2,003,257 | ||||||
Erie Indemnity Co., Class A | 15,680 | 1,830,954 | ||||||
First American Financial Corp. | 12,240 | 625,586 | ||||||
FNF Group | 35,980 | 1,325,143 | ||||||
Principal Financial Group, Inc. | 22,680 | 1,343,110 | ||||||
Reinsurance Group of America, Inc. | 2,660 | 397,404 | ||||||
7,525,454 | ||||||||
Internet Software & Services – 0.2% | ||||||||
j2 Global, Inc.(a) | 8,820 | 700,132 | ||||||
IT Services – 4.1% | ||||||||
Accenture plc, Class A | 6,300 | 952,560 | ||||||
Amdocs Ltd. | 15,120 | 1,016,820 | ||||||
Broadridge Financial Solutions, Inc. | 14,840 | 1,590,996 | ||||||
Fidelity National Information Services, Inc. | 17,920 | 1,701,862 | ||||||
International Business Machines Corp. | 15,400 | 2,232,384 | ||||||
Jack Henry & Associates, Inc. | 13,580 | 1,622,539 |
See Accompanying Notes to the Financial Statements.
228 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
IT Services – (continued) | ||||||||
Total System Services, Inc. | 15,820 | $ | 1,329,829 | |||||
Visa, Inc., Class A | 4,480 | 568,423 | ||||||
Western Union Co. (The)(a) | 79,520 | 1,570,520 | ||||||
12,585,933 | ||||||||
Machinery – 0.4% | ||||||||
Toro Co. (The) | 18,480 | 1,079,047 | ||||||
Media – 0.4% | ||||||||
Comcast Corp., Class A | 16,520 | 518,563 | ||||||
Walt Disney Co. (The) | 6,860 | 688,264 | ||||||
1,206,827 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 2.6% | ||||||||
Annaly Capital Management, Inc. | 38,780 | 402,149 | ||||||
Chimera Investment Corp. | 160,580 | 2,808,544 | ||||||
MFA Financial, Inc. | 161,140 | 1,211,773 | ||||||
New Residential Investment Corp. | 86,380 | 1,509,922 | ||||||
Starwood Property Trust, Inc. | 78,680 | 1,649,133 | ||||||
Two Harbors Investment Corp. | 21,420 | 326,869 | ||||||
7,908,390 | ||||||||
Multiline Retail – 2.7% | ||||||||
Kohl’s Corp. | 38,360 | 2,382,923 | ||||||
Macy’s, Inc.(a) | 71,540 | 2,222,748 | ||||||
Nordstrom, Inc.(a) | 27,860 | 1,408,602 | ||||||
Target Corp. | 29,120 | 2,114,112 | ||||||
8,128,385 | ||||||||
Multi-Utilities – 2.2% | ||||||||
CenterPoint Energy, Inc.(a) | 82,180 | 2,081,620 | ||||||
Consolidated Edison, Inc. | 5,180 | 415,073 | ||||||
DTE Energy Co. | 10,640 | 1,121,456 | ||||||
NorthWestern Corp. | 42,560 | 2,338,246 | ||||||
SCANA Corp. | 12,460 | 458,154 | ||||||
WEC Energy Group, Inc. | 5,320 | 341,970 | ||||||
6,756,519 | ||||||||
Oil, Gas & Consumable Fuels – 8.4% | ||||||||
Cheniere Energy Partners LP Holdings LLC | 8,260 | 230,454 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Chevron Corp. | 34,020 | $ | 4,256,242 | |||||
Exxon Mobil Corp. | 129,080 | 10,035,970 | ||||||
HollyFrontier Corp. | 47,600 | 2,888,844 | ||||||
Occidental Petroleum Corp. | 22,120 | 1,708,991 | ||||||
PBF Energy, Inc., Class A | 64,680 | 2,479,184 | ||||||
Phillips 66 | 3,360 | 374,002 | ||||||
Valero Energy Corp. | 31,920 | 3,540,886 | ||||||
25,514,573 | ||||||||
Paper & Forest Products – 0.6% | ||||||||
Domtar Corp.(a) | 38,780 | 1,702,442 | ||||||
Pharmaceuticals – 6.7% | ||||||||
Johnson & Johnson | 24,500 | 3,099,005 | ||||||
Merck & Co., Inc. | 124,460 | 7,326,960 | ||||||
Pfizer, Inc. | 272,860 | 9,989,405 | ||||||
20,415,370 | ||||||||
Road & Rail – 2.0% | ||||||||
Union Pacific Corp. | 44,520 | 5,949,208 | ||||||
Semiconductors & Semiconductor Equipment – 4.2% | ||||||||
KLA-Tencor Corp. | 15,120 | 1,538,309 | ||||||
Lam Research Corp. | 8,680 | 1,606,320 | ||||||
Maxim Integrated Products, Inc. | 1,728 | 94,176 | ||||||
MKS Instruments, Inc. | 13,580 | 1,390,592 | ||||||
NVIDIA Corp. | 10,080 | 2,266,992 | ||||||
Texas Instruments, Inc. | 58,660 | 5,949,884 | ||||||
12,846,273 | ||||||||
Software – 2.7% | ||||||||
Activision Blizzard, Inc. | 40,880 | 2,712,388 | ||||||
Blackbaud, Inc. | 13,160 | 1,381,274 | ||||||
Intuit, Inc. | 12,600 | 2,328,354 | ||||||
Symantec Corp. | 61,040 | 1,696,301 | ||||||
8,118,317 | ||||||||
Specialty Retail – 4.6% | ||||||||
Aaron’s, Inc.(a) | 30,380 | 1,268,973 | ||||||
Foot Locker, Inc. | 44,800 | 1,929,984 | ||||||
Gap, Inc. (The)(a) | 67,900 | 1,985,396 | ||||||
Home Depot, Inc. (The) | 40,040 | 7,399,392 | ||||||
Williams-Sonoma, Inc.(a) | 28,140 | 1,345,092 | ||||||
13,928,837 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 229 |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Technology Hardware, Storage & Peripherals – 5.6% | ||||||||
Apple, Inc. | 54,320 | $ | 8,976,923 | |||||
HP, Inc. | 110,040 | 2,364,760 | ||||||
Seagate Technology plc | 46,060 | 2,666,413 | ||||||
Western Digital Corp. | 19,600 | 1,544,284 | ||||||
Xerox Corp. | 42,700 | 1,342,915 | ||||||
16,895,295 | ||||||||
Textiles, Apparel & Luxury Goods – 0.9% | ||||||||
Carter’s, Inc.(a) | 13,580 | 1,362,346 | ||||||
VF Corp. | 16,560 | 1,339,207 | ||||||
2,701,553 | ||||||||
Tobacco – 1.4% | ||||||||
Altria Group, Inc. | 63,140 | 3,542,785 | ||||||
Philip Morris International, Inc. | 9,240 | 757,680 | ||||||
4,300,465 | ||||||||
Trading Companies & Distributors – 0.9% | ||||||||
Fastenal Co.(a) | 3,500 | 174,965 | ||||||
MSC Industrial Direct Co., Inc., Class A | 3,500 | 302,540 | ||||||
WW Grainger, Inc. | 8,260 | 2,323,951 | ||||||
2,801,456 | ||||||||
Total Common Stocks (Cost $250,901,640) | 301,016,027 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(b) – 7.1% | ||||||||
CERTIFICATES OF DEPOSIT – 0.3% | ||||||||
Bank of Nova Scotia, Houston | $ | 500,000 | 500,000 | |||||
Westpac Banking Corp., New York | 500,000 | 499,960 | ||||||
Total Certificates of Deposit (Cost $1,000,000) | 999,960 |
Investments | Principal Amount | Value | ||||||
COMMERCIAL PAPER – 0.2% | �� | |||||||
Union Bank of Switzerland (ICE LIBOR USD 1 Month + 0.21%), 2.09%, 5/2/2018(c) (d) | $ | 500,000 | $ | 500,000 | ||||
REPURCHASE AGREEMENTS – 6.6% | ||||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $1,000,054, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $1,091,258 | 1,000,000 | 1,000,000 | ||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $10,634,407, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $10,780,452 | 10,633,902 | 10,633,902 | ||||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $2,000,108, collateralized by various Common Stocks; total market value $2,236,976 | 2,000,000 | 2,000,000 |
See Accompanying Notes to the Financial Statements.
230 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(b) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Mizuho Securities USA, Inc., 1.72%, dated 4/30/2018, due 5/1/2018, repurchase price $2,000,096, collateralized by various U.S. Treasury Securities, ranging from 1.00% – 2.75%, maturing 6/30/2019 – 2/15/2028; total market value $2,032,551 | $ | 2,000,000 | $ | 2,000,000 | ||||
ML Pierce Fenner & Smith, Inc., 2.24%, dated 4/30/2018, due 7/31/2018, repurchase price $1,005,724, collateralized by various Common Stocks; total market value $1,091,377 | 1,000,000 | 1,000,000 | ||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $3,500,181, collateralized by various Common Stocks; total market value $3,866,119 | 3,500,000 | 3,500,000 | ||||||
Total Repurchase Agreements (Cost $20,133,902) | 20,133,902 | |||||||
Total Securities Lending Reinvestments (Cost $21,633,902) | 21,633,862 | |||||||
Total Investments – 106.3% (Cost $272,535,542) | 322,649,889 | |||||||
Liabilities in excess of other assets – (6.3%) |
| (19,157,043 | ) | |||||
NET ASSETS – 100.0% | $ | 303,492,846 |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $26,736,528, collateralized in the form of cash with a value of $21,633,902 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $3,069,457 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from May 3, 2018 – February 15, 2048 and $3,229,580 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from May 8, 2018 – July 22, 2068; a total value of $27,932,939. |
(b) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $21,633,862. |
(c) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2018. |
(d) | Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration normally to qualified institutional buyers. |
Percentages shown are based on Net Assets.
Abbreviations
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
USD – US Dollar
As of April 30, 2018, 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 | $ | 53,669,229 | ||
Aggregate gross unrealized depreciation | (3,502,788 | ) | ||
Net unrealized appreciation | $ | 50,166,441 | ||
Federal income tax cost | $ | 272,430,096 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 231 |
Table of Contents
FlexShares® Quality Dividend Defensive Index Fund (cont.)
Futures Contracts
FlexShares® Quality Dividend Defensive Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Depreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500 E-Mini Index | 18 | 06/15/2018 | USD | $ | 2,382,300 | $ | (53,352 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
232 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Quality Dividend Dynamic Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.5% | ||||||||
Aerospace & Defense – 3.2% | ||||||||
Boeing Co. (The) | 4,554 | $ | 1,519,032 | |||||
Airlines – 0.5% | ||||||||
Delta Air Lines, Inc. | 4,906 | 256,191 | ||||||
Automobiles – 0.2% | ||||||||
Ford Motor Co. | 8,734 | 98,170 | ||||||
Banks – 8.1% | ||||||||
Bank of America Corp. | 9,680 | 289,625 | ||||||
Citigroup, Inc. | 5,610 | 382,995 | ||||||
JPMorgan Chase & Co. | 17,446 | 1,897,777 | ||||||
Wells Fargo & Co. | 23,980 | 1,246,001 | ||||||
3,816,398 | ||||||||
Beverages – 0.4% | ||||||||
Coca-Cola Co. (The) | 2,508 | 108,371 | ||||||
PepsiCo, Inc. | 748 | 75,503 | ||||||
183,874 | ||||||||
Biotechnology – 2.8% | ||||||||
AbbVie, Inc. | 13,794 | 1,331,811 | ||||||
Capital Markets – 6.0% | ||||||||
Ameriprise Financial, Inc. | 2,002 | 280,701 | ||||||
BGC Partners, Inc., Class A | 17,270 | 230,727 | ||||||
BlackRock, Inc. | 946 | 493,339 | ||||||
Eaton Vance Corp.(a) | 4,906 | 266,837 | ||||||
Federated Investors, Inc., Class B | 6,864 | 181,690 | ||||||
Invesco Ltd. | 7,436 | 215,421 | ||||||
Lazard Ltd., Class A | 5,060 | 275,365 | ||||||
Legg Mason, Inc. | 5,918 | 234,945 | ||||||
Morgan Stanley | 6,556 | 338,421 | ||||||
T. Rowe Price Group, Inc. | 2,838 | 323,021 | ||||||
2,840,467 | ||||||||
Chemicals – 2.3% | ||||||||
Chemours Co. (The) | 1,056 | 51,121 | ||||||
Huntsman Corp. | 7,766 | 231,194 | ||||||
Kronos Worldwide, Inc.(a) | 9,922 | 228,603 | ||||||
LyondellBasell Industries NV, Class A | 2,882 | 304,714 |
Investments | Shares | Value | ||||||
Chemicals – (continued) | ||||||||
Trinseo SA(a) | 3,476 | $ | 253,574 | |||||
1,069,206 | ||||||||
Communications Equipment – 1.3% | ||||||||
Cisco Systems, Inc. | 14,278 | 632,373 | ||||||
Consumer Finance – 0.4% | ||||||||
Navient Corp. | 14,234 | 188,743 | ||||||
Containers & Packaging – 1.0% | ||||||||
Greif, Inc., Class A | 975 | 57,057 | ||||||
Greif, Inc., Class B | 2,640 | 166,188 | ||||||
Packaging Corp. of America | 2,024 | 234,157 | ||||||
457,402 | ||||||||
Diversified Consumer Services – 0.5% | ||||||||
H&R Block, Inc. | 9,218 | 254,878 | ||||||
Diversified Telecommunication Services – 3.4% | ||||||||
AT&T, Inc. | 4,554 | 148,916 | ||||||
Verizon Communications, Inc. | 29,656 | 1,463,523 | ||||||
1,612,439 | ||||||||
Electrical Equipment – 0.4% | ||||||||
Emerson Electric Co. | 3,080 | 204,543 | ||||||
Electronic Equipment, Instruments & Components – 1.5% | ||||||||
Avnet, Inc. | 5,984 | 234,752 | ||||||
Belden, Inc. | 3,322 | 204,635 | ||||||
CDW Corp. | 3,520 | 250,941 | ||||||
690,328 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 6.2% | ||||||||
Apple Hospitality REIT, Inc. | 10,714 | 192,745 | ||||||
CoreCivic, Inc. | 12,276 | 247,484 | ||||||
DDR Corp.(a) | 34,232 | 248,182 | ||||||
Gaming and Leisure Properties, Inc. | 2,552 | 87,457 | ||||||
GEO Group, Inc. (The) | 2,992 | 67,320 | ||||||
Hospitality Properties Trust | 10,956 | 272,585 | ||||||
Host Hotels & Resorts, Inc. | 10,274 | 200,959 | ||||||
Iron Mountain, Inc. | 176 | 5,974 | ||||||
Kimco Realty Corp. | 4,994 | 72,463 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 233 |
Table of Contents
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) – (continued) | ||||||||
Lamar Advertising Co., Class A(a) | 3,344 | $ | 213,046 | |||||
LaSalle Hotel Properties | 6,512 | 192,560 | ||||||
Outfront Media, Inc.(a) | 10,164 | 190,575 | ||||||
Park Hotels & Resorts, Inc. | 9,328 | 268,460 | ||||||
Ryman Hospitality Properties, Inc.(a) | 3,740 | 293,141 | ||||||
Simon Property Group, Inc. | 2,244 | 350,827 | ||||||
2,903,778 | ||||||||
Food & Staples Retailing – 2.4% | ||||||||
CVS Health Corp. | 8,294 | 579,170 | ||||||
Walgreens Boots Alliance, Inc. | 8,206 | 545,289 | ||||||
1,124,459 | ||||||||
Health Care Providers & Services – 0.6% | ||||||||
Patterson Cos., Inc. | 5,896 | 137,259 | ||||||
UnitedHealth Group, Inc. | 638 | 150,823 | ||||||
288,082 | ||||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||
Las Vegas Sands Corp. | 3,916 | 287,160 | ||||||
Household Durables – 0.6% | ||||||||
Tupperware Brands Corp. | 4,598 | 204,887 | ||||||
Whirlpool Corp. | 374 | 57,951 | ||||||
262,838 | ||||||||
Household Products – 0.7% | ||||||||
Kimberly-Clark Corp. | 2,662 | 275,623 | ||||||
Procter & Gamble Co. (The) | 990 | 71,617 | ||||||
347,240 | ||||||||
Independent Power and Renewable Electricity Producers – 1.1% | ||||||||
NRG Yield, Inc., Class A | 11,836 | 208,432 | ||||||
NRG Yield, Inc., Class C(a) | 16,896 | 300,749 | ||||||
509,181 | ||||||||
Industrial Conglomerates – 3.6% | ||||||||
3M Co. | 4,664 | 906,635 | ||||||
General Electric Co. | 56,584 | 796,137 | ||||||
1,702,772 |
Investments | Shares | Value | ||||||
Insurance – 1.3% | ||||||||
American Equity Investment Life Holding Co. | 3,608 | $ | 108,962 | |||||
Lincoln National Corp. | 3,432 | 242,436 | ||||||
Principal Financial Group, Inc. | 4,224 | 250,145 | ||||||
601,543 | ||||||||
Internet Software & Services – 0.1% | ||||||||
j2 Global, Inc.(a) | 792 | 62,869 | ||||||
IT Services – 6.4% | ||||||||
Accenture plc, Class A | 5,874 | 888,149 | ||||||
Broadridge Financial Solutions, Inc. | 2,002 | 214,634 | ||||||
International Business Machines Corp. | 3,124 | 452,855 | ||||||
Jack Henry & Associates, Inc. | 2,046 | 244,456 | ||||||
Leidos Holdings, Inc. | 3,608 | 231,742 | ||||||
Mastercard, Inc., Class A | 154 | 27,454 | ||||||
Science Applications International Corp. | 3,344 | 286,882 | ||||||
Total System Services, Inc. | 3,322 | 279,247 | ||||||
Visa, Inc., Class A | 1,056 | 133,985 | ||||||
Western Union Co. (The) | 13,002 | 256,790 | ||||||
3,016,194 | ||||||||
Machinery – 1.0% | ||||||||
Cummins, Inc. | 880 | 140,677 | ||||||
Illinois Tool Works, Inc. | 2,354 | 334,315 | ||||||
474,992 | ||||||||
Media – 0.9% | ||||||||
Comcast Corp., Class A | 2,288 | 71,820 | ||||||
Interpublic Group of Cos., Inc. (The)(a) | 2,596 | 61,240 | ||||||
Omnicom Group, Inc. | 3,322 | 244,699 | ||||||
Walt Disney Co. (The) | 682 | 68,425 | ||||||
446,184 | ||||||||
Metals & Mining – 0.9% | ||||||||
Freeport-McMoRan, Inc. | 2,530 | 38,481 | ||||||
Nucor Corp. | 1,892 | 116,585 | ||||||
United States Steel Corp. | 7,744 | 261,980 | ||||||
417,046 |
See Accompanying Notes to the Financial Statements.
234 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – 1.9% | ||||||||
AGNC Investment Corp. | 4,620 | $ | 87,410 | |||||
Annaly Capital Management, Inc. | 27,346 | 283,578 | ||||||
Chimera Investment Corp.(a) | 11,484 | 200,855 | ||||||
MFA Financial, Inc. | 3,366 | 25,312 | ||||||
New Residential Investment Corp. | 440 | 7,691 | ||||||
Starwood Property Trust, Inc.(a) | 5,258 | 110,208 | ||||||
Two Harbors Investment Corp. | 12,848 | 196,061 | ||||||
911,115 | ||||||||
Multiline Retail – 2.1% | ||||||||
Kohl’s Corp. | 4,906 | 304,761 | ||||||
Macy’s, Inc.(a) | 8,492 | 263,847 | ||||||
Nordstrom, Inc.(a) | 4,840 | 244,710 | ||||||
Target Corp. | 2,684 | 194,858 | ||||||
1,008,176 | ||||||||
Multi-Utilities – 0.6% | ||||||||
CenterPoint Energy, Inc. | 10,428 | 264,141 | ||||||
Oil, Gas & Consumable Fuels – 8.5% | ||||||||
Cheniere Energy Partners LP Holdings LLC(a) | 6,556 | 182,912 | ||||||
Chevron Corp. | 11,044 | 1,381,715 | ||||||
EnLink Midstream LLC(a) | 2,706 | 40,184 | ||||||
Exxon Mobil Corp. | 13,486 | 1,048,536 | ||||||
Murphy Oil Corp.(a) | 3,850 | 115,924 | ||||||
PBF Energy, Inc., Class A(a) | 8,514 | 326,342 | ||||||
Phillips 66 | 4,290 | 477,520 | ||||||
Valero Energy Corp. | 4,004 | 444,164 | ||||||
4,017,297 | ||||||||
Paper & Forest Products – 0.5% | ||||||||
Domtar Corp.(a) | 5,346 | 234,689 | ||||||
Pharmaceuticals – 7.3% | ||||||||
Johnson & Johnson | 3,410 | 431,331 | ||||||
Merck & Co., Inc. | 23,804 | 1,401,341 | ||||||
Pfizer, Inc. | 43,846 | 1,605,202 | ||||||
3,437,874 | ||||||||
Road & Rail – 0.8% | ||||||||
Norfolk Southern Corp. | 2,486 | 356,666 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – 4.2% | ||||||||
Applied Materials, Inc. | 4,862 | $ | 241,495 | |||||
KLA-Tencor Corp. | 2,882 | 293,215 | ||||||
Lam Research Corp. | 1,540 | 284,992 | ||||||
MKS Instruments, Inc. | 2,112 | 216,269 | ||||||
Texas Instruments, Inc. | 9,262 | 939,445 | ||||||
1,975,416 | ||||||||
Software – 2.6% | ||||||||
Activision Blizzard, Inc. | 6,358 | 421,853 | ||||||
CA, Inc. | 2,244 | 78,091 | ||||||
Intuit, Inc. | 2,024 | 374,015 | ||||||
SS&C Technologies Holdings, Inc. | 1,254 | 62,261 | ||||||
Symantec Corp. | 9,812 | 272,676 | ||||||
1,208,896 | ||||||||
Specialty Retail – 5.2% | ||||||||
Best Buy Co., Inc.(a) | 4,510 | 345,150 | ||||||
Gap, Inc. (The) | 9,438 | 275,967 | ||||||
Home Depot, Inc. (The) | 8,778 | 1,622,174 | ||||||
Lowe’s Cos., Inc. | 814 | 67,098 | ||||||
Office Depot, Inc. | 60,236 | 137,941 | ||||||
2,448,330 | ||||||||
Technology Hardware, Storage & Peripherals – 5.0% | ||||||||
Apple, Inc. | 7,898 | 1,305,223 | ||||||
Hewlett Packard Enterprise Co. | 5,654 | 96,401 | ||||||
HP, Inc. | 16,632 | 357,422 | ||||||
Seagate Technology plc | 6,248 | 361,697 | ||||||
Xerox Corp. | 7,480 | 235,246 | ||||||
2,355,989 | ||||||||
Tobacco – 1.0% | ||||||||
Altria Group, Inc. | 6,248 | 350,575 | ||||||
Philip Morris International, Inc. | 902 | 73,964 | ||||||
Vector Group Ltd.(a) | 3,410 | 66,495 | ||||||
491,034 | ||||||||
Trading Companies & Distributors – 0.4% | ||||||||
Fastenal Co.(a) | 3,564 | 178,164 | ||||||
Total Common Stocks (Cost $41,156,636) | 46,487,980 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 235 |
Table of Contents
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(b) – 5.0% | ||||||||
REPURCHASE AGREEMENTS – 5.0% | ||||||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $350,019, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $381,940 | $ | 350,000 | $ | 350,000 | ||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $1,027,847, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $1,041,964 | 1,027,799 | 1,027,799 | ||||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $500,027, collateralized by various Common Stocks; total market value $559,244 | 500,000 | 500,000 | ||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $500,026, collateralized by various Common Stocks; total market value $552,303 | 500,000 | 500,000 | ||||||
2,377,799 | ||||||||
Total Securities Lending Reinvestments (Cost $2,377,799) | 2,377,799 | |||||||
Total Investments – 103.5% (Cost $43,534,435) | 48,865,779 | |||||||
Liabilities in excess of other assets – (3.5%) |
| (1,633,427 | ) | |||||
NET ASSETS – 100.0% | $ | 47,232,352 |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $3,707,838, collateralized in the form of cash with a value of $2,377,799 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $624,876 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.00%, and maturity dates ranging from May 3, 2018 – February 15, 2048 and $878,558 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from May 8, 2018 – July 22, 2068; a total value of $3,881,233. |
(b) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $2,377,799. |
Percentages shown are based on Net Assets.
As of April 30, 2018, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 7,456,584 | ||
Aggregate gross unrealized depreciation | (2,084,522 | ) | ||
Net unrealized appreciation | $ | 5,372,062 | ||
Federal income tax cost | $ | 43,480,387 |
See Accompanying Notes to the Financial Statements.
236 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Quality Dividend Dynamic Index Fund (cont.)
Futures Contracts
FlexShares® Quality Dividend Dynamic Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Depreciation* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500 E-Mini Index | 5 | 06/15/2018 | USD | $ | 661,750 | $ | (13,330 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD – US Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 237 |
Table of Contents
Schedule of Investments
FlexShares® International Quality Dividend Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 98.0% | ||||||||
Air Freight & Logistics – 0.9% | ||||||||
bpost SA | 261,429 | $ | 5,739,149 | |||||
Deutsche Post AG (Registered) | 88,795 | 3,872,885 | ||||||
9,612,034 | ||||||||
Airlines – 0.7% | ||||||||
Aeroflot PJSC | 3,394,860 | 7,762,680 | ||||||
Auto Components – 0.8% | ||||||||
Bridgestone Corp. | 206,500 | 8,660,073 | ||||||
Automobiles – 2.2% | ||||||||
Nissan Motor Co. Ltd.(a) | 330,400 | 3,476,862 | ||||||
Subaru Corp. | 247,800 | 8,331,334 | ||||||
Toyota Motor Corp. | 181,900 | 11,937,161 | ||||||
23,745,357 | ||||||||
Banks – 12.6% | ||||||||
ABN AMRO Group NV, CVA(b) | 290,752 | 9,038,603 | ||||||
Agricultural Bank of China Ltd., Class H | 10,738,000 | 6,102,186 | ||||||
Aozora Bank Ltd. | 218,200 | 8,823,715 | ||||||
Australia & New Zealand Banking Group Ltd. | 336,595 | 6,819,473 | ||||||
Bank of China Ltd., Class H | 9,912,000 | 5,430,714 | ||||||
Bank of Communications Co. Ltd., Class H | 3,304,000 | 2,719,567 | ||||||
Bank Polska Kasa Opieki SA | 66,906 | 2,232,269 | ||||||
Barclays Africa Group Ltd. | 579,439 | 8,493,565 | ||||||
Commonwealth Bank of Australia | 206,500 | 11,195,052 | ||||||
First Financial Holding Co. Ltd. | 3,717,000 | 2,562,885 | ||||||
HSBC Holdings plc | 2,057,979 | 20,561,879 | ||||||
Intesa Sanpaolo SpA | 3,247,832 | 12,388,165 | ||||||
Intesa Sanpaolo SpA (Retirement Savings Plan) | 2,149,252 | 8,532,842 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Malayan Banking Bhd. | 82,600 | $ | 226,947 | |||||
Mediobanca Banca di Credito Finanziario SpA | 199,892 | 2,430,793 | ||||||
Mega Financial Holding Co. Ltd. | 3,304,000 | 2,931,404 | ||||||
National Australia Bank Ltd. | 359,310 | 7,851,968 | ||||||
Nordea Bank AB | 326,683 | 3,339,692 | ||||||
Royal Bank of Canada | 6,608 | 503,300 | ||||||
Skandinaviska Enskilda Banken AB, Class A(a) | 830,130 | 7,833,207 | ||||||
Swedbank AB, Class A | 349,811 | 7,639,987 | ||||||
137,658,213 | ||||||||
Capital Markets – 3.6% | ||||||||
Banca Generali SpA | 23,541 | 765,665 | ||||||
CI Financial Corp. | 286,622 | 6,041,208 | ||||||
Coronation Fund Managers Ltd. | 422,912 | 2,512,996 | ||||||
IG Group Holdings plc | 345,681 | 3,951,827 | ||||||
IGM Financial, Inc. | 267,624 | 8,227,358 | ||||||
Macquarie Group Ltd. | 123,487 | 10,131,447 | ||||||
Natixis SA | 330,400 | 2,719,277 | ||||||
Nomura Holdings, Inc. | 867,300 | 5,010,010 | ||||||
39,359,788 | ||||||||
Chemicals – 1.4% | ||||||||
BASF SE | 3,304 | 344,580 | ||||||
Mitsui Chemicals, Inc. | 264,500 | 7,589,948 | ||||||
Petkim Petrokimya Holding A/S* | 3,995,775 | 7,057,294 | ||||||
14,991,822 | ||||||||
Diversified Financial Services – 1.0% | ||||||||
Banca Mediolanum SpA | 928,424 | 7,470,668 | ||||||
Rural Electrification Corp. Ltd. | 2,046,415 | 3,909,468 | ||||||
11,380,136 | ||||||||
Diversified Telecommunication Services – 4.9% | ||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 5,596,563 | 7,065,119 |
See Accompanying Notes to the Financial Statements.
238 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Diversified Telecommunication Services – (continued) | ||||||||
HKT Trust & HKT Ltd. | 2,065,000 | $ | 2,720,619 | |||||
Inmarsat plc(a) | 376,243 | 1,949,019 | ||||||
O2 Czech Republic A/S* | 654,605 | 8,978,473 | ||||||
Spark New Zealand Ltd.(a) | 2,874,480 | 7,007,740 | ||||||
Telenor ASA | 398,545 | 8,845,390 | ||||||
Telia Co. AB | 1,948,121 | 9,621,396 | ||||||
Telstra Corp. Ltd. | 2,988,468 | 7,173,587 | ||||||
53,361,343 | ||||||||
Electric Utilities – 2.4% | ||||||||
CEZ A/S | 106,967 | 2,742,043 | ||||||
EDP – Energias de Portugal SA(a) | 589,764 | 2,191,813 | ||||||
Endesa SA | 408,457 | 9,559,051 | ||||||
Federal Grid Co. Unified Energy System PJSC | 2,691,855,943 | 7,501,641 | ||||||
SSE plc | 194,936 | 3,707,917 | ||||||
25,702,465 | ||||||||
Electrical Equipment – 0.4% | ||||||||
Mitsubishi Electric Corp. | 301,900 | 4,636,445 | ||||||
Electronic Equipment, Instruments & Components – 1.7% | ||||||||
Kingboard Laminates Holdings Ltd. | 4,749,500 | 6,414,768 | ||||||
Omron Corp. | 136,500 | 7,409,733 | ||||||
WPG Holdings Ltd.* | 2,065,000 | 2,795,303 | ||||||
Yaskawa Electric Corp.(a) | 60,000 | 2,450,994 | ||||||
19,070,798 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 2.6% | ||||||||
Fonciere Des Regions | 23,954 | 2,681,404 | ||||||
Growthpoint Properties Ltd.(a) | 1,272,195 | 2,965,525 | ||||||
H&R REIT | 547,225 | 8,802,043 | ||||||
RioCan REIT | 223,846 | 4,077,229 | ||||||
SmartCentres REIT | 48,321 | 1,085,569 | ||||||
Stockland | 186,676 | 583,377 | ||||||
Unibail-Rodamco SE | 11,151 | 2,679,708 | ||||||
Westfield Corp. | 828,065 | 5,750,597 | ||||||
28,625,452 |
Investments | Shares | Value | ||||||
Food & Staples Retailing – 1.2% | ||||||||
Casino Guichard Perrachon SA(a) | 151,571 | $ | 7,867,182 | |||||
Wesfarmers Ltd. | 151,158 | 4,994,228 | ||||||
12,861,410 | ||||||||
Food Products – 1.4% | ||||||||
Marine Harvest ASA | 430,346 | 9,381,974 | ||||||
Nestle SA (Registered) | 80,948 | 6,294,956 | ||||||
15,676,930 | ||||||||
Gas Utilities – 1.0% | ||||||||
Cia de Gas de Sao Paulo – COMGAS (Preference), Class A | 468,600 | 7,974,140 | ||||||
Gas Natural SDG SA | 119,357 | 3,015,371 | ||||||
10,989,511 | ||||||||
Hotels, Restaurants & Leisure – 1.0% | ||||||||
Crown Resorts Ltd. | 785,939 | 7,688,728 | ||||||
OPAP SA | 227,563 | 2,730,170 | ||||||
10,418,898 | ||||||||
Household Durables – 0.3% | ||||||||
Panasonic Corp. | 247,800 | 3,695,770 | ||||||
Independent Power and Renewable Electricity Producers – 1.1% | ||||||||
AES Gener SA | 3,578,645 | 1,002,772 | ||||||
Datang International Power Generation Co. Ltd., Class H(a) | 8,260,000 | 2,725,881 | ||||||
Engie Brasil Energia SA | 743,400 | 7,884,384 | ||||||
11,613,037 | ||||||||
Industrial Conglomerates – 0.7% | ||||||||
Sime Darby Bhd. | 12,018,300 | 8,178,631 | ||||||
Insurance – 7.4% | ||||||||
Admiral Group plc | 99,120 | 2,720,902 | ||||||
Aegon NV | 560,028 | 4,122,005 | ||||||
Allianz SE (Registered) | 56,581 | 13,430,234 | ||||||
Assicurazioni Generali SpA | 357,658 | 7,233,729 | ||||||
BB Seguridade Participacoes SA | 784,700 | 6,182,744 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 239 |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Insurance – (continued) | ||||||||
Gjensidige Forsikring ASA | 352,289 | $ | 5,593,634 | |||||
ING Life Insurance Korea Ltd.(b) | 3,717 | 143,383 | ||||||
Legal & General Group plc | 2,453,633 | 9,124,681 | ||||||
Poste Italiane SpA(b) | 329,574 | 3,227,739 | ||||||
Power Corp. of Canada | 64,015 | 1,523,536 | ||||||
Power Financial Corp. | 66,493 | 1,727,744 | ||||||
Sampo OYJ, Class A(a) | 169,330 | 9,155,157 | ||||||
Sompo Holdings, Inc. | 82,600 | 3,464,784 | ||||||
Tokio Marine Holdings, Inc. | 21,500 | 1,016,203 | ||||||
Zurich Insurance Group AG* | 38,409 | 12,323,162 | ||||||
80,989,637 | ||||||||
Machinery – 2.2% | ||||||||
FANUC Corp. | 47,900 | 10,313,219 | ||||||
Komatsu Ltd. | 269,600 | 9,239,205 | ||||||
Kone OYJ, Class B(a) | 54,516 | 2,717,641 | ||||||
Metso OYJ(a) | 60,298 | 2,155,692 | ||||||
24,425,757 | ||||||||
Marine – 0.6% | ||||||||
Kuehne + Nagel International AG (Registered) | 40,061 | 6,272,810 | ||||||
Media – 2.4% | ||||||||
Eutelsat Communications SA | 401,023 | 8,692,217 | ||||||
ITV plc | 3,565,429 | 7,447,294 | ||||||
Multiplus SA | 784,700 | 6,434,733 | ||||||
Naspers Ltd., Class N | 2,478 | 607,293 | ||||||
ProSiebenSat.1 Media SE | 82,187 | 2,988,880 | ||||||
26,170,417 | ||||||||
Metals & Mining – 6.4% | ||||||||
Alrosa PJSC | 5,288,052 | 7,524,533 | ||||||
Assore Ltd. | 164,787 | 4,057,849 | ||||||
BHP Billiton plc | 155,288 | 3,302,399 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Eregli Demir ve Celik Fabrikalari TAS* | 3,436,160 | $ | 8,587,759 | |||||
Fortescue Metals Group Ltd. | 1,941,100 | 6,681,491 | ||||||
Kumba Iron Ore Ltd. | 277,123 | 5,961,238 | ||||||
Novolipetsk Steel PJSC | 3,528,259 | 9,029,112 | ||||||
Rio Tinto plc | 154,049 | 8,372,598 | ||||||
Severstal PJSC | 522,032 | 8,388,070 | ||||||
Vedanta Ltd. | 1,693,300 | 7,570,883 | ||||||
69,475,932 | ||||||||
Multiline Retail – 0.2% | ||||||||
Marks & Spencer Group plc | 479,080 | 1,898,420 | ||||||
Multi-Utilities – 1.3% | ||||||||
Centrica plc | 4,971,694 | 10,531,859 | ||||||
Engie SA | 207,739 | 3,651,908 | ||||||
14,183,767 | ||||||||
Oil, Gas & Consumable Fuels – 10.0% | ||||||||
AltaGas Ltd.(a) | 138,355 | 2,671,154 | ||||||
BP plc | 2,373,924 | 17,591,116 | ||||||
China Petroleum & Chemical Corp., Class H | 11,564,000 | 11,301,358 | ||||||
Enagas SA | 337,834 | 9,853,249 | ||||||
Eni SpA | 330,400 | 6,466,866 | ||||||
Exxaro Resources Ltd. | 645,932 | 5,758,865 | ||||||
Formosa Petrochemical Corp. | 1,070,000 | 4,394,065 | ||||||
Inter Pipeline Ltd. | 480,732 | 8,681,264 | ||||||
Pembina Pipeline Corp. | 72,688 | 2,318,509 | ||||||
PTT Exploration & Production PCL, NVDR | 660,800 | 2,805,678 | ||||||
Repsol SA | 153,223 | 2,934,216 | ||||||
Snam SpA | 1,754,011 | 8,444,996 | ||||||
Tatneft PJSC (Preference) | 370,874 | 2,800,298 | ||||||
TOTAL SA(a) | 293,398 | 18,550,120 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 77,231 | 1,966,277 | ||||||
Vermilion Energy, Inc.(a) | 76,818 | 2,600,648 | ||||||
109,138,679 |
See Accompanying Notes to the Financial Statements.
240 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – 0.5% | ||||||||
Shandong Chenming Paper Holdings Ltd., Class H* (a) | 1,032,500 | $ | 1,578,696 | |||||
UPM-Kymmene OYJ | 112,336 | 4,028,299 | ||||||
5,606,995 | ||||||||
Personal Products – 1.9% | ||||||||
Pola Orbis Holdings, Inc. | 47,700 | 2,083,674 | ||||||
Unilever NV, CVA | 315,945 | 18,112,839 | ||||||
20,196,513 | ||||||||
Pharmaceuticals – 5.4% | ||||||||
AstraZeneca plc | 160,244 | 11,262,937 | ||||||
GlaxoSmithKline plc | 1,238,174 | 24,922,700 | ||||||
Novartis AG (Registered) | 77,644 | 6,016,057 | ||||||
Orion OYJ, Class B | 125,139 | 3,807,038 | ||||||
Roche Holding AG | 45,430 | 10,135,585 | ||||||
Sanofi | 40,061 | 3,184,348 | ||||||
59,328,665 | ||||||||
Real Estate Management & Development – 2.4% | ||||||||
Daito Trust Construction Co. Ltd. | 6,200 | 1,034,325 | ||||||
Land & Houses PCL, NVDR | 24,490,900 | 8,536,119 | ||||||
Logan Property Holdings Co. Ltd. | 6,880,000 | 10,221,489 | ||||||
Red Star Macalline Group Corp. Ltd., Class H(a) (b) | 1,899,800 | 2,570,748 | ||||||
Sino-Ocean Group Holding Ltd. | 2,684,500 | 1,881,279 | ||||||
Wharf Holdings Ltd. (The) | 669,000 | 2,237,601 | ||||||
26,481,561 | ||||||||
Road & Rail – 0.1% | ||||||||
Aurizon Holdings Ltd. | 242,844 | 824,898 | ||||||
Semiconductors & Semiconductor Equipment – 2.5% | ||||||||
Novatek Microelectronics Corp. | 2,065,000 | 8,724,418 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 547,222 | 4,198,516 | ||||||
Tokyo Electron Ltd. | 54,700 | 10,525,095 |
Investments | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
Vanguard International Semiconductor Corp. | 1,652,000 | $ | 3,372,511 | |||||
26,820,540 | ||||||||
Software – 0.0%(c) | ||||||||
Oracle Corp. Japan | 6,500 | 534,613 | ||||||
Specialty Retail – 1.4% | ||||||||
CECONOMY AG | 608,349 | 6,832,627 | ||||||
Hennes & Mauritz AB, Class B(a) | 480,319 | 8,230,744 | ||||||
15,063,371 | ||||||||
Technology Hardware, Storage & Peripherals – 3.3% | ||||||||
Asustek Computer, Inc. | 272,000 | 2,555,760 | ||||||
Chicony Electronics Co. Ltd. | 928,000 | 2,295,966 | ||||||
Compal Electronics, Inc. | 2,891,000 | 1,895,641 | ||||||
Inventec Corp. | 2,478,000 | 1,888,662 | ||||||
Konica Minolta, Inc. | 82,600 | 709,564 | ||||||
Lenovo Group Ltd.(a) | 4,130,000 | 1,973,370 | ||||||
Lite-On Technology Corp.* | 1,881,000 | 2,495,369 | ||||||
Pegatron Corp. | 3,155,000 | 7,411,235 | ||||||
Quanta Computer, Inc. | 1,239,000 | 2,265,557 | ||||||
Samsung Electronics Co. Ltd.(d) | 2,478 | 6,148,308 | ||||||
Wistron Corp. | 7,847,000 | 6,285,769 | ||||||
35,925,201 | ||||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||
HUGO BOSS AG | 92,512 | 8,695,939 | ||||||
Li & Fung Ltd.(a) | 15,694,000 | 7,938,736 | ||||||
16,634,675 | ||||||||
Tobacco – 1.9% | ||||||||
British American Tobacco plc | 34,692 | 1,910,843 | ||||||
Imperial Brands plc | 270,515 | 9,704,206 | ||||||
Japan Tobacco, Inc. | 330,400 | 8,866,526 | ||||||
20,481,575 | ||||||||
Trading Companies & Distributors – 2.7% | ||||||||
ITOCHU Corp.(a) | 523,600 | 10,498,318 | ||||||
Marubeni Corp. | 1,280,300 | 9,643,347 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 241 |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Trading Companies & Distributors – (continued) | ||||||||
Mitsubishi Corp. | 190,200 | $ | 5,261,461 | |||||
Sumitomo Corp.(a) | 206,500 | 3,716,717 | ||||||
29,119,843 | ||||||||
Transportation Infrastructure – 1.2% | ||||||||
Atlantia SpA | 73,927 | 2,456,262 | ||||||
Hopewell Highway Infrastructure Ltd.(a) | 1,227,000 | 747,308 | ||||||
Hutchison Port Holdings Trust(a) | 23,995,300 | 8,038,425 | ||||||
Sydney Airport | 318,423 | 1,713,778 | ||||||
12,955,773 | ||||||||
Wireless Telecommunication Services – 0.8% | ||||||||
Intouch Holdings PCL, NVDR | 1,858,500 | 3,386,050 | ||||||
MegaFon PJSC | 241,192 | 1,811,555 | ||||||
StarHub Ltd.(a) | 784,700 | 1,345,319 | ||||||
Turkcell Iletisim Hizmetleri A/S | 599,676 | 2,059,277 | ||||||
8,602,201 | ||||||||
Total Common Stocks (Cost $1,005,311,183) | 1,069,132,636 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(e) – 1.5% | ||||||||
CERTIFICATES OF DEPOSIT – 0.0%(c) | ||||||||
Bank of Nova Scotia, Houston (ICE LIBOR USD 3 Month + 0.14%), 2.08%, 5/24/2018(f) | $ | 500,000 | 500,000 | |||||
Principal Amount | Value | |||||||
REPURCHASE AGREEMENTS – 1.5% | ||||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $3,931,984, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $3,985,983 | $ | 3,931,797 | $ | 3,931,797 | ||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $1,500,081, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $1,636,887 | 1,500,000 | 1,500,000 | ||||||
ING Bank NV, London Branch, 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $2,000,108, collateralized by various Common Stocks; total market value $2,236,976 | 2,000,000 | 2,000,000 |
See Accompanying Notes to the Financial Statements.
242 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Principal Amount | Value | |||||||
SECURITIES LENDING REINVESTMENTS(e) – (continued) | ||||||||
REPURCHASE AGREEMENTS – (continued) | ||||||||
Mizuho Securities USA, Inc., 1.72%, dated 4/30/2018, due 5/1/2018, repurchase price $5,000,239, collateralized by various U.S. Treasury Securities, ranging from 1.00% – 2.75%, maturing 6/30/2019 – 2/15/2028; total market value $5,081,377 | $ | 5,000,000 | $ | 5,000,000 | ||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $3,100,160, collateralized by various Common Stocks; total market value $3,424,277 | 3,100,000 | 3,100,000 | ||||||
Total Repurchase Agreements (Cost $15,531,797) | 15,531,797 | |||||||
Total Securities Lending Reinvestments (Cost $16,031,797) | 16,031,797 | |||||||
Total Investments – 99.5% (Cost $1,021,342,980) | 1,085,164,433 | |||||||
Other Assets Less Liabilities – 0.5% |
| 5,198,519 | ||||||
NET ASSETS – 100.0% | $ | 1,090,362,952 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $60,359,512, collateralized in the form of cash with a value of $16,031,797 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $17,342,145 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from May 24, 2018 – November 15, |
2047 and $31,326,801 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from May 8, 2018 – March 22, 2068; a total value of $64,700,743. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Represents less than 0.05% of net assets. |
(d) | Security fair valued as of April 30, 2018 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2018 amounted to $6,148,308, which represents approximately 0.56% of net assets of the Fund. |
(e) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $16,031,797. |
(f) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2018. |
Percentages shown are based on Net Assets.
Abbreviations
CVA – Dutch Certification
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
NVDR – Non-Voting Depositary Receipt
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
USD – US Dollar
As of April 30, 2018, 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 | $ | 103,712,952 | ||
Aggregate gross unrealized depreciation | (42,944,997 | ) | ||
Net unrealized appreciation | $ | 60,767,955 | ||
Federal income tax cost | $ | 1,024,826,533 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 243 |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Futures Contracts
FlexShares® International Quality Dividend Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
EURO STOXX 50 Index | 148 | 06/15/2018 | EUR | $ | 6,211,984 | $ | 258,160 | |||||||||||||
FTSE 100 Index | 35 | 06/15/2018 | GBP | 3,596,261 | 168,941 | |||||||||||||||
Hang Seng Index | 2 | 05/30/2018 | HKD | 390,724 | 8,586 | |||||||||||||||
MSCI Emerging Markets E-Mini Index | 74 | 06/15/2018 | USD | 4,263,140 | (123,829 | ) | ||||||||||||||
S&P/TSX 60 Index | 8 | 06/14/2018 | CAD | 1,148,126 | 11,804 | |||||||||||||||
SGX Nikkei 225 Index | 9 | 06/07/2018 | JPY | 925,908 | 44,946 | |||||||||||||||
SPI 200 Index | 18 | 06/21/2018 | AUD | 2,026,546 | 20,343 | |||||||||||||||
TOPIX Index | 16 | 06/07/2018 | JPY | 2,601,965 | 116,509 | |||||||||||||||
$ | 505,460 |
* | 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® International Quality Dividend Index Fund had the following outstanding contracts as of April 30, 2018:
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
CAD | 590,442 | Morgan Stanley | USD | 454,306 | 06/20/2018 | $ | 6,824 | |||||||||||||||
USD | 390,000 | Toronto-Dominion Bank (The) | AUD | 504,142 | 06/20/2018 | 9,391 | ||||||||||||||||
USD | 92,776 | Goldman Sachs & Co. | BRL* | 304,480 | 06/20/2018 | 5,897 | ||||||||||||||||
USD | 320,000 | Toronto-Dominion Bank (The) | CHF | 302,592 | 06/20/2018 | 12,976 | ||||||||||||||||
USD | 1,138,000 | Citibank NA | EUR | 920,603 | 06/20/2018 | 21,452 | ||||||||||||||||
USD | 450,000 | Toronto-Dominion Bank (The) | EUR | 363,902 | 06/20/2018 | 8,644 | ||||||||||||||||
USD | 340,000 | Citibank NA | HKD | 2,658,490 | 06/20/2018 | 859 | ||||||||||||||||
USD | 57,117 | Goldman Sachs & Co. | INR* | 3,746,261 | 06/20/2018 | 1,286 | ||||||||||||||||
USD | 570,000 | Morgan Stanley | INR* | 37,621,140 | 06/20/2018 | 9,319 | ||||||||||||||||
USD | 1,180,000 | Toronto-Dominion Bank (The) | JPY | 124,689,774 | 06/20/2018 | 36,561 | ||||||||||||||||
USD | 502,858 | Morgan Stanley | KRW* | 533,342,500 | 06/20/2018 | 2,781 | ||||||||||||||||
USD | 252,226 | Citibank NA | SGD | 330,000 | 06/20/2018 | 2,716 | ||||||||||||||||
Total unrealized appreciation |
| $ | 118,706 | |||||||||||||||||||
AUD | 204,381 | Citibank NA | USD | 160,018 | 06/20/2018 | $ | (5,718 | ) | ||||||||||||||
CHF | 373,677 | Citibank NA | USD | 397,386 | 06/20/2018 | (18,237 | ) | |||||||||||||||
EUR | 1,695,230 | Citibank NA | USD | 2,107,456 | 06/20/2018 | (51,407 | ) | |||||||||||||||
EUR | 453,148 | Goldman Sachs & Co. | USD | 560,000 | 06/20/2018 | (10,402 | ) | |||||||||||||||
EUR | 597,877 | Societe Generale | USD | 740,000 | 06/20/2018 | (14,869 | ) | |||||||||||||||
GBP | 468,355 | Societe Generale | USD | 656,226 | 06/20/2018 | (9,565 | ) | |||||||||||||||
HKD | 2,497,085 | Citibank NA | USD | 319,457 | 06/20/2018 | (906 | ) | |||||||||||||||
INR* | 34,026,720 | Morgan Stanley | USD | 520,000 | 06/20/2018 | (12,888 | ) | |||||||||||||||
JPY | 32,782,190 | Bank of Montreal | USD | 310,000 | 06/20/2018 | (9,378 | ) | |||||||||||||||
JPY | 92,029,352 | Citibank NA | USD | 873,363 | 06/20/2018 | (29,429 | ) | |||||||||||||||
NOK | 1,340,609 | Morgan Stanley | USD | 174,474 | 06/20/2018 | (6,830 | ) |
See Accompanying Notes to the Financial Statements.
244 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Forward Foreign Currency Contracts (cont.)
| ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
SEK | 2,025,553 | Societe Generale | USD | 249,437 | 06/20/2018 | $ | (16,853 | ) | ||||||||||||||
TWD* | 4,745,600 | Goldman Sachs & Co. | USD | 164,032 | 06/20/2018 | (3,077 | ) | |||||||||||||||
USD | 200,000 | Toronto-Dominion Bank (The) | CAD | 261,913 | 06/20/2018 | (4,552 | ) | |||||||||||||||
Total unrealized depreciation |
| $ | (194,111 | ) | ||||||||||||||||||
Net unrealized depreciation |
| $ | (75,405 | ) |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
AUD – Australian Dollar
BRL – Brazilian Real
CAD – Canadian Dollar
CHF – Swiss Franc
EUR – Euro
GBP – British Pound
HKD – Hong Kong Dollar
INR – Indian Rupee
JPY – Japanese Yen
KRW – Korean Won
NOK – Norwegian Krone
SEK – Swedish Krona
SGD – Singapore Dollar
TWD – Taiwan Dollar
USD – US Dollar
FlexShares® International Quality Dividend Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 6.5 | % | ||
Belgium | 0.5 | |||
Brazil | 2.6 | |||
Canada | 4.4 | |||
Chile | 0.1 | |||
China | 4.9 | |||
Czech Republic | 1.1 | |||
Finland | 2.0 | |||
France | 4.3 | |||
Germany | 3.3 | |||
Greece | 0.3 | |||
Hong Kong | 1.2 | |||
India | 1.1 | |||
Israel | 0.6 | |||
Italy | 5.4 | |||
Japan | 13.7 | |||
Malaysia | 0.8 | |||
Netherlands | 3.1 | |||
New Zealand | 0.6 | |||
Norway | 2.2 | |||
Poland | 0.2 | |||
Portugal | 0.2 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 245 |
Table of Contents
FlexShares® International Quality Dividend Index Fund (cont.)
Russia | 4.1 | % | ||
Singapore | 0.9 | |||
South Africa | 2.8 | |||
South Korea | 0.6 | |||
Spain | 2.3 | |||
Sweden | 3.4 | |||
Switzerland | 3.8 | |||
Taiwan | 5.1 | |||
Thailand | 1.4 | |||
Turkey | 1.8 | |||
United Kingdom | 12.7 | |||
Other1 | 2.0 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
246 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® International Quality Dividend Defensive Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 96.1% | ||||||||
Air Freight & Logistics – 0.9% | ||||||||
bpost SA | 24,969 | $ | 548,144 | |||||
Deutsche Post AG (Registered) | 7,421 | 323,675 | ||||||
871,819 | ||||||||
Airlines – 1.5% | ||||||||
Aeroflot PJSC | 303,195 | 693,285 | ||||||
Japan Airlines Co. Ltd. | 21,300 | 838,958 | ||||||
1,532,243 | ||||||||
Auto Components – 0.3% | ||||||||
Bridgestone Corp. | 5,200 | 218,074 | ||||||
Nokian Renkaat OYJ(a) | 3,403 | 136,708 | ||||||
354,782 | ||||||||
Automobiles – 3.2% | ||||||||
Ford Otomotiv Sanayi A/S | 54,161 | 748,082 | ||||||
Nissan Motor Co. Ltd. | 28,700 | 302,016 | ||||||
Subaru Corp. | 19,800 | 665,700 | ||||||
Toyota Motor Corp. | 24,600 | 1,614,371 | ||||||
3,330,169 | ||||||||
Banks – 15.0% | ||||||||
ABN AMRO Group NV, CVA(b) | 25,051 | 778,760 | ||||||
Agricultural Bank of China Ltd., Class H | 1,640,000 | 931,978 | ||||||
Aozora Bank Ltd. | 17,700 | 715,764 | ||||||
Australia & New Zealand Banking Group Ltd. | 32,472 | 657,888 | ||||||
Bank Polska Kasa Opieki SA | 6,478 | 216,134 | ||||||
Barclays Africa Group Ltd. | 55,063 | 807,128 | ||||||
Canadian Imperial Bank of Commerce | 5,125 | 447,076 | ||||||
Commonwealth Bank of Australia | 19,598 | 1,062,473 | ||||||
CTBC Financial Holding Co. Ltd. | 205,000 | 147,238 | ||||||
DNB ASA(a) | 11,234 | 211,117 | ||||||
First Financial Holding Co. Ltd. | 287,000 | 197,888 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
HSBC Holdings plc | 188,641 | $ | 1,884,768 | |||||
Industrial & Commercial Bank of China Ltd., Class H | 246,000 | 218,785 | ||||||
Intesa Sanpaolo SpA | 257,972 | 983,979 | ||||||
Intesa Sanpaolo SpA (Retirement Savings Plan) | 239,440 | 950,612 | ||||||
Malayan Banking Bhd. | 102,544 | 281,744 | ||||||
Mega Financial Holding Co. Ltd. | 369,000 | 327,387 | ||||||
Mizuho Financial Group, Inc. | 307,500 | 557,533 | ||||||
National Australia Bank Ltd. | 34,399 | 751,718 | ||||||
Nordea Bank AB | 33,825 | 345,794 | ||||||
Royal Bank of Canada | 9,881 | 752,588 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 102,090 | 963,333 | ||||||
Skandinaviska Enskilda Banken AB, Class C(a) | 32,472 | 328,323 | ||||||
Swedbank AB, Class A | 34,686 | 757,554 | ||||||
Toronto-Dominion Bank (The) | 820 | 46,125 | ||||||
15,323,687 | ||||||||
Capital Markets – 2.5% | ||||||||
China Huarong Asset Management Co. Ltd., Class H(b) | 1,722,000 | 596,801 | ||||||
CI Financial Corp. | 10,988 | 231,597 | ||||||
IG Group Holdings plc | 79,171 | 905,083 | ||||||
IGM Financial, Inc. | 19,844 | 610,049 | ||||||
Natixis SA | 31,078 | 255,780 | ||||||
2,599,310 | ||||||||
Chemicals – 1.1% | ||||||||
BASF SE | 451 | 47,036 | ||||||
Formosa Chemicals & Fibre Corp. | 205,000 | 758,707 | ||||||
Petkim Petrokimya Holding A/S* | 209,756 | 370,469 | ||||||
1,176,212 | ||||||||
Communications Equipment – 0.1% | ||||||||
VTech Holdings Ltd.(a) | 8,200 | 100,459 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 247 |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Construction & Engineering – 0.0%(c) | ||||||||
Obayashi Corp. | 4,100 | $ | 47,285 | |||||
Diversified Financial Services – 0.4% | ||||||||
Rural Electrification Corp. Ltd. | 191,757 | 366,332 | ||||||
Diversified Telecommunication Services – 5.5% | ||||||||
BCE, Inc. | 6,888 | 292,778 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 522,914 | 660,128 | ||||||
BT Group plc | 44,608 | 153,264 | ||||||
HKT Trust & HKT Ltd. | 123,000 | 162,051 | ||||||
Inmarsat plc(a) | 22,181 | 114,902 | ||||||
Maroc Telecom | 14,678 | 249,686 | ||||||
O2 Czech Republic A/S* | 57,441 | 787,853 | ||||||
Proximus SADP | 5,904 | 181,398 | ||||||
Spark New Zealand Ltd. | 281,506 | 686,288 | ||||||
Telenor ASA | 38,171 | 847,175 | ||||||
Telia Co. AB | 167,116 | 825,354 | ||||||
Telstra Corp. Ltd. | 271,338 | 651,326 | ||||||
5,612,203 | ||||||||
Electric Utilities – 2.7% | ||||||||
CEZ A/S | 11,193 | 286,927 | ||||||
EDP – Energias de Portugal SA(a) | 62,443 | 232,065 | ||||||
Endesa SA | 33,907 | 793,520 | ||||||
Enel SpA | 85,157 | 542,007 | ||||||
Federal Grid Co. Unified Energy System PJSC | 228,979,178 | 638,117 | ||||||
SSE plc | 13,038 | 247,998 | ||||||
2,740,634 | ||||||||
Electronic Equipment, Instruments & Components – 1.6% | ||||||||
Hon Hai Precision Industry Co. Ltd. | 179,000 | 501,550 | ||||||
Kingboard Laminates Holdings Ltd. | 471,500 | 636,817 | ||||||
Murata Manufacturing Co. Ltd. | 1,200 | 151,885 | ||||||
WPG Holdings Ltd.* | 123,000 | 166,500 | ||||||
Yaskawa Electric Corp.(a) | 5,700 | 232,844 | ||||||
1,689,596 |
Investments | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) – 3.2% | ||||||||
Gecina SA | 1,230 | $ | 213,402 | |||||
Growthpoint Properties Ltd.(a) | 127,893 | 298,122 | ||||||
H&R REIT | 43,214 | 695,092 | ||||||
Nomura Real Estate Master Fund, Inc. | 205 | 286,073 | ||||||
RioCan REIT | 34,194 | 622,825 | ||||||
SmartCentres REIT | 8,979 | 201,720 | ||||||
Stockland | 34,932 | 109,165 | ||||||
Westfield Corp. | 119,802 | 831,979 | ||||||
3,258,378 | ||||||||
Food & Staples Retailing – 1.5% | ||||||||
Casino Guichard Perrachon SA(a) | 13,407 | 695,881 | ||||||
Lawson, Inc.(a) | 6,100 | 403,043 | ||||||
Wesfarmers Ltd. | 13,407 | 442,964 | ||||||
1,541,888 | ||||||||
Food Products – 2.6% | ||||||||
Marine Harvest ASA | 43,173 | 941,215 | ||||||
Nestle SA (Registered) | 19,270 | 1,498,540 | ||||||
Orkla ASA | 22,714 | 210,777 | ||||||
2,650,532 | ||||||||
Gas Utilities – 0.7% | ||||||||
Cia de Gas de Sao Paulo – COMGAS (Preference), Class A | 45,140 | 768,145 | ||||||
Hotels, Restaurants & Leisure – 0.8% | ||||||||
Crown Resorts Ltd. | 54,202 | 530,250 | ||||||
OPAP SA | 23,698 | 284,315 | ||||||
814,565 | ||||||||
Independent Power and Renewable Electricity Producers – 0.9% | ||||||||
AES Gener SA | 111,766 | 31,318 | ||||||
Datang International Power Generation Co. Ltd., Class H | 492,000 | 162,365 | ||||||
Engie Brasil Energia SA | 69,700 | 739,227 | ||||||
932,910 |
See Accompanying Notes to the Financial Statements.
248 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Industrial Conglomerates – 1.0% | ||||||||
HAP Seng Consolidated Bhd. | 98,400 | $ | 245,781 | |||||
Sime Darby Bhd. | 1,111,100 | 756,120 | ||||||
1,001,901 | ||||||||
Insurance – 4.6% | ||||||||
Admiral Group plc | 9,389 | 257,733 | ||||||
Allianz SE (Registered) | 164 | 38,927 | ||||||
Assicurazioni Generali SpA | 16,933 | 342,474 | ||||||
Direct Line Insurance Group plc | 37,679 | 194,251 | ||||||
Gjensidige Forsikring ASA | 40,426 | 641,883 | ||||||
Legal & General Group plc | 222,917 | 828,994 | ||||||
NN Group NV | 2,631 | 126,166 | ||||||
Poste Italiane SpA(b) | 27,798 | 272,244 | ||||||
Sampo OYJ, Class A | 16,605 | 897,782 | ||||||
Zurich Insurance Group AG* | 3,526 | 1,131,284 | ||||||
4,731,738 | ||||||||
IT Services – 0.4% | ||||||||
Otsuka Corp. | 8,200 | 382,180 | ||||||
Machinery – 2.4% | ||||||||
FANUC Corp. | 4,100 | 882,760 | ||||||
Komatsu Ltd. | 24,600 | 843,043 | ||||||
Kone OYJ, Class B | 8,897 | 443,519 | ||||||
Metso OYJ | 738 | 26,384 | ||||||
SKF AB, Class A | 11,480 | 235,561 | ||||||
2,431,267 | ||||||||
Media – 3.0% | ||||||||
Eutelsat Communications SA | 37,023 | 802,478 | ||||||
ITV plc | 323,490 | 675,690 | ||||||
Lagardere SCA | 4,387 | 125,513 | ||||||
Multiplus SA | 65,600 | 537,936 | ||||||
Naspers Ltd., Class N | 205 | 50,240 | ||||||
ProSiebenSat.1 Media SE | 6,109 | 222,165 | ||||||
Shaw Communications, Inc., Class B | 7,690 | 158,305 | ||||||
Smiles Fidelidade SA* | 24,600 | 507,842 | ||||||
3,080,169 | ||||||||
Metals & Mining – 5.7% | ||||||||
Alrosa PJSC | 480,274 | 683,397 |
Investments | Shares | Value | ||||||
Metals & Mining – (continued) | ||||||||
Eregli Demir ve Celik Fabrikalari TAS* | 328,369 | $ | 820,670 | |||||
Fortescue Metals Group Ltd. | 176,095 | 606,139 | ||||||
Kumba Iron Ore Ltd. | 24,149 | 519,473 | ||||||
Novolipetsk Steel PJSC | 333,043 | 852,285 | ||||||
Rio Tinto plc | 14,514 | 788,839 | ||||||
Severstal PJSC | 16,612 | 266,924 | ||||||
Severstal PJSC, GDR(b) | 36,442 | 581,979 | ||||||
Vedanta Ltd. | 158,301 | 707,777 | ||||||
5,827,483 | ||||||||
Multiline Retail – 0.2% | ||||||||
Marks & Spencer Group plc | 60,885 | 241,265 | ||||||
Multi-Utilities – 1.7% | ||||||||
Centrica plc | 462,726 | 980,222 | ||||||
Engie SA | 17,753 | 312,085 | ||||||
Innogy SE(b) | 11,152 | 492,200 | ||||||
1,784,507 | ||||||||
Oil, Gas & Consumable Fuels – 9.2% | ||||||||
AltaGas Ltd.(a) | 7,175 | 138,524 | ||||||
BP plc | 232,060 | 1,719,598 | ||||||
China Petroleum & Chemical Corp., Class H | 82,000 | 80,138 | ||||||
Enagas SA | 30,094 | 877,720 | ||||||
Enbridge, Inc. | 19,520 | 592,170 | ||||||
Eni SpA | 25,666 | 502,356 | ||||||
Hindustan Petroleum Corp. Ltd. | 97,375 | 444,272 | ||||||
Inter Pipeline Ltd. | 45,059 | 813,695 | ||||||
Pembina Pipeline Corp. | 9,512 | 303,402 | ||||||
Snam SpA | 150,224 | 723,280 | ||||||
Statoil ASA | 16,534 | 424,129 | ||||||
Tatneft PJSC (Preference) | 40,508 | 305,857 | ||||||
TOTAL SA(a) | 29,124 | 1,841,368 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 23,001 | 585,598 | ||||||
Vermilion Energy, Inc.(a) | 943 | 31,925 | ||||||
9,384,032 | ||||||||
Paper & Forest Products – 0.6% | ||||||||
Shandong Chenming Paper Holdings Ltd., Class H* (a) | 123,000 | 188,067 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 249 |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Paper & Forest Products – (continued) | ||||||||
Svenska Cellulosa AB SCA, Class B | 42,968 | $ | 478,285 | |||||
666,352 | ||||||||
Personal Products – 0.1% | ||||||||
Unilever NV, CVA | 1,066 | 61,113 | ||||||
Pharmaceuticals – 5.3% | ||||||||
Astellas Pharma, Inc. | 51,700 | 758,550 | ||||||
AstraZeneca plc | 3,116 | 219,012 | ||||||
GlaxoSmithKline plc | 114,882 | 2,312,412 | ||||||
Novartis AG (Registered) | 7,831 | 606,766 | ||||||
Orion OYJ, Class A | 6,355 | 209,228 | ||||||
Orion OYJ, Class B | 12,136 | 369,207 | ||||||
Roche Holding AG | 3,936 | 878,135 | ||||||
Sanofi | 1,025 | 81,475 | ||||||
5,434,785 | ||||||||
Professional Services – 0.6% | ||||||||
Recruit Holdings Co. Ltd. | 26,700 | 616,595 | ||||||
Real Estate Management & Development – 2.7% | ||||||||
Daito Trust Construction Co. Ltd. | 4,100 | 683,989 | ||||||
Land & Houses PCL, NVDR | 2,369,800 | 825,976 | ||||||
Logan Property Holdings Co. Ltd. | 656,000 | 974,607 | ||||||
Wharf Holdings Ltd. (The) | 82,000 | 274,265 | ||||||
2,758,837 | ||||||||
Semiconductors & Semiconductor Equipment – 2.2% | ||||||||
Novatek Microelectronics Corp. | 205,000 | 866,104 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 52,000 | 398,966 | ||||||
Tokyo Electron Ltd. | 4,900 | 942,833 | ||||||
2,207,903 | ||||||||
Software – 0.4% | ||||||||
Trend Micro, Inc. | 7,000 | 419,648 | ||||||
Specialty Retail – 1.5% | ||||||||
CECONOMY AG | 61,582 | 691,654 | ||||||
Hennes & Mauritz AB, Class B(a) | 47,273 | 810,070 | ||||||
1,501,724 |
Investments | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – 2.9% | ||||||||
Asustek Computer, Inc. | 24,000 | $ | 225,508 | |||||
Compal Electronics, Inc. | 287,000 | 188,187 | ||||||
Inventec Corp. | 246,000 | 187,494 | ||||||
Lite-On Technology Corp.* | 164,000 | 217,566 | ||||||
Pegatron Corp. | 287,000 | 674,176 | ||||||
Quanta Computer, Inc. | 82,000 | 149,940 | ||||||
Samsung Electronics Co. Ltd.(d) | 246 | 610,365 | ||||||
Wistron Corp. | 861,000 | 689,696 | ||||||
2,942,932 | ||||||||
Textiles, Apparel & Luxury Goods – 1.1% | ||||||||
HUGO BOSS AG | 3,977 | 373,830 | ||||||
Li & Fung Ltd. | 1,476,000 | 746,627 | ||||||
1,120,457 | ||||||||
Tobacco – 2.2% | ||||||||
British American Tobacco plc | 11,357 | 625,546 | ||||||
Imperial Brands plc | 24,723 | 886,890 | ||||||
Japan Tobacco, Inc. | 28,700 | 770,186 | ||||||
2,282,622 | ||||||||
Trading Companies & Distributors – 1.3% | ||||||||
ITOCHU Corp.(a) | 49,200 | 986,473 | ||||||
Sumitomo Corp. | 20,500 | 368,972 | ||||||
1,355,445 | ||||||||
Transportation Infrastructure – 1.7% | ||||||||
Atlantia SpA | 8,897 | 295,607 | ||||||
Hutchison Port Holdings Trust(a) | 2,218,100 | 743,064 | ||||||
Sydney Airport | 123,738 | 665,968 | ||||||
1,704,639 | ||||||||
Wireless Telecommunication Services – 0.8% | ||||||||
MegaFon PJSC | 22,345 | 167,830 | ||||||
NTT DOCOMO, Inc. | 12,300 | 318,670 | ||||||
StarHub Ltd. | 57,400 | 98,409 | ||||||
Turkcell Iletisim Hizmetleri A/S | 59,983 | 205,980 | ||||||
790,889 | ||||||||
Total Common Stocks (Cost $93,138,706) | 98,439,632 |
See Accompanying Notes to the Financial Statements.
250 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
SECURITIES LENDING REINVESTMENTS(e) – 0.3% | ||||||||
REPURCHASE AGREEMENTS – 0.3% | ||||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $217,447, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $220,433 | $ | 217,437 | $ | 217,437 | ||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $65,465, collateralized by various Common Stocks; total market value $72,309 | 65,461 | 65,461 | ||||||
282,898 | ||||||||
Total Securities Lending Reinvestments (Cost $282,898) | 282,898 | |||||||
Total Investments – 96.4% (Cost $93,421,604) | 98,722,530 | |||||||
Other Assets Less Liabilities – 3.6% |
| 3,721,435 | ||||||
NET ASSETS – 100.0% | $ | 102,443,965 |
* | Non-income producing security. |
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $4,221,112, collateralized in the form of cash with a value of $282,898 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $616,675 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from May 24, 2018 – November 15, 2047 and $3,661,784 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from May 8, 2018 – July 22, 2068; a total value of $4,561,357. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Represents less than 0.05% of net assets. |
(d) | Security fair valued as of April 30, 2018 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2018 amounted to $610,365, which represents approximately 0.60% of net assets of the Fund. |
(e) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $282,898. |
Percentages shown are based on Net Assets.
Abbreviations
CVA – Dutch Certification
GDR – Global Depositary Receipt
NVDR – Non-Voting Depositary Receipt
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SCA – Limited partnership with share capital
As of April 30, 2018, 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 | $ | 9,765,103 | ||
Aggregate gross unrealized depreciation | (4,843,897 | ) | ||
Net unrealized appreciation | $ | 4,921,206 | ||
Federal income tax cost | $ | 93,783,082 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 251 |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Futures Contracts
FlexShares® International Quality Dividend Defensive Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI EAFE E-Mini Index | 31 | 06/15/2018 | USD | $ | 3,141,075 | $ | 6,870 | |||||||||||||
MSCI Emerging Markets E-Mini Index | 15 | 06/15/2018 | USD | 864,150 | (29,693 | ) | ||||||||||||||
$ | (22,823 | ) |
* | 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. |
Forward Foreign Currency Contracts | ||||||||||||||||||||||
FlexShares® International Quality Dividend Defensive Index Fund had the following outstanding contracts as of April 30, 2018: | ||||||||||||||||||||||
Contracts to Receive | Counterparty | In Exchange For | Maturity Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD | 82,494 | Citibank NA | AUD | 105,364 | 06/20/2018 | $ | 2,947 | |||||||||||||||
USD | 30,470 | Goldman Sachs & Co. | BRL* | 100,000 | 06/20/2018 | 1,937 | ||||||||||||||||
Total unrealized appreciation |
| $ | 4,884 | |||||||||||||||||||
NOK | 59,477 | Morgan Stanley | USD | 7,741 | 06/20/2018 | $ | (303 | ) | ||||||||||||||
Total unrealized depreciation |
| $ | (303 | ) | ||||||||||||||||||
Net unrealized appreciation |
| $ | 4,581 |
* | Non-deliverable forward. See Note 2 in the Notes to Financial Statements. |
Abbreviations:
AUD — Australian Dollar
BRL — Brazilian Real
NOK — Norwegian Krone
USD — US Dollar
FlexShares® International Quality Dividend Defensive Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 6.2 | % | ||
Belgium | 0.7 | |||
Brazil | 2.5 | |||
Canada | 5.8 | |||
Chile | 0.0 | † | ||
China | 3.7 | |||
Czech Republic | 1.1 | |||
Finland | 2.0 | |||
France | 4.2 | |||
Germany | 2.1 | |||
Greece | 0.3 | |||
Hong Kong | 1.3 | |||
India | 1.5 | |||
Israel | 0.7 |
See Accompanying Notes to the Financial Statements.
252 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Defensive Index Fund (cont.)
Italy | 4.5 | % | ||
Japan | 13.7 | |||
Malaysia | 1.3 | |||
Morocco | 0.2 | |||
Netherlands | 0.9 | |||
New Zealand | 0.7 | |||
Norway | 3.2 | |||
Poland | 0.2 | |||
Portugal | 0.2 | |||
Russia | 4.1 | |||
Singapore | 0.8 | |||
South Africa | 1.6 | |||
South Korea | 0.6 | |||
Spain | 1.6 | |||
Sweden | 4.6 | |||
Switzerland | 4.0 | |||
Taiwan | 5.6 | |||
Thailand | 0.8 | |||
Turkey | 2.7 | |||
United Kingdom | 12.7 | |||
Other1 | 3.9 | |||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 253 |
Table of Contents
Schedule of Investments
FlexShares® International Quality Dividend Dynamic Index Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS – 99.0% | ||||||||
Air Freight & Logistics – 0.7% | ||||||||
bpost SA | 27,373 | $ | 600,919 | |||||
Airlines – 0.9% | ||||||||
Aeroflot PJSC | 361,615 | 826,868 | ||||||
Auto Components – 0.8% | ||||||||
Nokian Renkaat OYJ(a) | 17,918 | 719,814 | ||||||
Automobiles – 2.3% | ||||||||
Honda Motor Co. Ltd. | 6,200 | 213,438 | ||||||
Nissan Motor Co. Ltd. | 27,900 | 293,597 | ||||||
Subaru Corp. | 27,900 | 938,032 | ||||||
Toyota Motor Corp. | 6,200 | 406,874 | ||||||
Yamaha Motor Co. Ltd. | 6,200 | 198,309 | ||||||
2,050,250 | ||||||||
Banks – 12.3% | ||||||||
Agricultural Bank of China Ltd., Class H | 1,705,000 | 968,917 | ||||||
Aozora Bank Ltd. | 6,200 | 250,720 | ||||||
Australia & New Zealand Banking Group Ltd. | 28,489 | 577,192 | ||||||
Bank of China Ltd., Class H | 744,000 | 407,632 | ||||||
Bank of Communications Co. Ltd., Class H | 217,000 | 178,616 | ||||||
Bank Polska Kasa Opieki SA | 5,456 | 182,035 | ||||||
Barclays Africa Group Ltd. | 60,171 | 882,002 | ||||||
Canadian Imperial Bank of Commerce | 713 | 62,198 | ||||||
Commonwealth Bank of Australia | 17,143 | 929,379 | ||||||
HSBC Holdings plc | 163,339 | 1,631,968 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 248,000 | 220,564 | ||||||
ING Groep NV | 26,009 | 439,183 | ||||||
Intesa Sanpaolo SpA | 277,047 | 1,056,737 | ||||||
Intesa Sanpaolo SpA (Retirement Savings Plan) | 219,604 | 871,860 | ||||||
National Australia Bank Ltd. | 27,838 | 608,341 | ||||||
Nordea Bank AB | 30,256 | 309,308 | ||||||
Royal Bank of Canada | 837 | 63,750 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 6,200 | 257,802 |
Investments | Shares | Value | ||||||
Banks – (continued) | ||||||||
Swedbank AB, Class A | 37,696 | $ | 823,293 | |||||
Toronto-Dominion Bank (The) | 434 | 24,413 | ||||||
10,745,910 | ||||||||
Building Products – 0.3% | ||||||||
Cie de Saint-Gobain | 4,433 | 232,957 | ||||||
TOTO Ltd. | 1,200 | 68,102 | ||||||
301,059 | ||||||||
Capital Markets – 4.0% | ||||||||
CI Financial Corp. | 6,045 | 127,412 | ||||||
Coronation Fund Managers Ltd. | 36,890 | 219,205 | ||||||
IGM Financial, Inc. | 27,187 | 835,789 | ||||||
Macquarie Group Ltd. | 12,710 | 1,042,787 | ||||||
Natixis SA | 28,644 | 235,748 | ||||||
Nomura Holdings, Inc. | 111,600 | 644,664 | ||||||
Schroders plc (Non-Voting) | 3,317 | 107,821 | ||||||
St James’s Place plc | 7,626 | 119,374 | ||||||
UBS Group AG (Registered)* | 12,276 | 207,969 | ||||||
3,540,769 | ||||||||
Chemicals – 1.1% | ||||||||
BASF SE | 9,300 | 969,914 | ||||||
Construction & Engineering – 1.1% | ||||||||
ACS Actividades de Construccion y Servicios SA | 21,824 | 923,663 | ||||||
Diversified Financial Services – 0.7% | ||||||||
Banca Mediolanum SpA | 15,066 | 121,230 | ||||||
Rural Electrification Corp. Ltd. | 243,381 | 464,955 | ||||||
586,185 | ||||||||
Diversified Telecommunication Services – 4.7% | ||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 593,247 | 748,917 | ||||||
Elisa OYJ | 4,960 | 220,051 | ||||||
Inmarsat plc(a) | 28,923 | 149,827 | ||||||
O2 Czech Republic A/S* | 67,518 | 926,068 | ||||||
Telenor ASA | 41,199 | 914,379 | ||||||
Telia Co. AB | 77,035 | 380,461 | ||||||
Telstra Corp. Ltd. | 331,700 | 796,220 | ||||||
4,135,923 |
See Accompanying Notes to the Financial Statements.
254 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Electric Utilities – 2.1% | ||||||||
CEZ A/S | 9,362 | $ | 239,990 | |||||
EDP – Energias de Portugal SA(a) | 55,490 | 206,224 | ||||||
Endesa SA | 42,346 | 991,017 | ||||||
Federal Grid Co. Unified Energy System PJSC | 136,570,686 | 380,594 | ||||||
1,817,825 | ||||||||
Electrical Equipment – 1.0% | ||||||||
Mitsubishi Electric Corp. | 58,900 | 904,560 | ||||||
Electronic Equipment, Instruments & Components – 2.4% | ||||||||
AU Optronics Corp. | 465,000 | 194,886 | ||||||
Hitachi Ltd. | 35,000 | 256,395 | ||||||
Kingboard Laminates Holdings Ltd. | 201,500 | 272,150 | ||||||
Murata Manufacturing Co. Ltd. | 1,900 | 240,484 | ||||||
Omron Corp. | 13,700 | 743,688 | ||||||
WPG Holdings Ltd.* | 93,000 | 125,890 | ||||||
Yaskawa Electric Corp. | 6,200 | 253,269 | ||||||
2,086,762 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 1.4% | ||||||||
Growthpoint Properties Ltd. | 102,066 | 237,919 | ||||||
H&R REIT | 45,384 | 729,996 | ||||||
Unibail-Rodamco SE | 1,085 | 260,737 | ||||||
1,228,652 | ||||||||
Food & Staples Retailing – 1.7% | ||||||||
Casino Guichard Perrachon SA(a) | 15,779 | 818,998 | ||||||
Seven & i Holdings Co. Ltd. | 6,900 | 302,988 | ||||||
Wesfarmers Ltd. | 10,664 | 352,336 | ||||||
1,474,322 | ||||||||
Food Products – 1.7% | ||||||||
Marine Harvest ASA | 47,988 | 1,046,186 | ||||||
Nestle SA (Registered) | 5,301 | 412,235 | ||||||
1,458,421 | ||||||||
Gas Utilities – 1.2% | ||||||||
Cia de Gas de Sao Paulo – COMGAS (Preference), Class A | 49,600 | 844,040 |
Investments | Shares | Value | ||||||
Gas Utilities – (continued) | ||||||||
Gas Natural SDG SA | 9,765 | $ | 246,698 | |||||
1,090,738 | ||||||||
Health Care Equipment & Supplies – 0.4% | ||||||||
Hoya Corp. | 6,600 | 353,568 | ||||||
Hotels, Restaurants & Leisure – 1.6% | ||||||||
Crown Resorts Ltd. | 38,843 | 379,995 | ||||||
OPAP SA | 18,259 | 219,061 | ||||||
Sands China Ltd. | 136,400 | 795,120 | ||||||
1,394,176 | ||||||||
Independent Power and Renewable Electricity Producers – 1.1% | ||||||||
Datang International Power Generation Co. Ltd., Class H | 558,000 | 184,145 | ||||||
Engie Brasil Energia SA | 77,500 | 821,953 | ||||||
1,006,098 | ||||||||
Industrial Conglomerates – 1.0% | ||||||||
Sime Darby Bhd. | 1,280,300 | 871,263 | ||||||
Insurance – 7.8% | ||||||||
Aegon NV | 145,545 | 1,071,263 | ||||||
Allianz SE (Registered) | 4,681 | 1,111,096 | ||||||
Assicurazioni Generali SpA | 15,717 | 317,881 | ||||||
AXA SA(a) | 19,375 | 555,258 | ||||||
BB Seguridade Participacoes SA | 80,600 | 635,057 | ||||||
ING Life Insurance Korea Ltd.(b) | 2,666 | 102,841 | ||||||
Legal & General Group plc | 266,972 | 992,827 | ||||||
Manulife Financial Corp. | 20,212 | 382,025 | ||||||
Mapfre SA | 39,525 | 137,723 | ||||||
Poste Italiane SpA(b) | 21,235 | 207,969 | ||||||
Power Corp. of Canada | 6,789 | 161,576 | ||||||
Power Financial Corp. | 5,549 | 144,184 | ||||||
Zurich Insurance Group AG* | 3,224 | 1,034,390 | ||||||
6,854,090 | ||||||||
Machinery – 2.6% | ||||||||
JTEKT Corp. | 43,400 | 703,998 | ||||||
Komatsu Ltd. | 27,900 | 956,135 | ||||||
Metso OYJ | 5,022 | 179,540 | ||||||
Mitsubishi Heavy Industries Ltd. | 3,100 | 122,555 | ||||||
NGK Insulators Ltd. | 9,300 | 170,999 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 255 |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Machinery – (continued) | ||||||||
NSK Ltd. | 9,300 | $ | 124,935 | |||||
2,258,162 | ||||||||
Media – 2.5% | ||||||||
Eutelsat Communications SA | 22,010 | 477,069 | ||||||
ITV plc | 398,660 | 832,701 | ||||||
Multiplus SA | 83,700 | 686,361 | ||||||
ProSiebenSat.1 Media SE | 6,603 | 240,130 | ||||||
2,236,261 | ||||||||
Metals & Mining – 7.0% | ||||||||
Alrosa PJSC | 590,984 | 840,929 | ||||||
BHP Billiton plc | 28,427 | 604,537 | ||||||
Eregli Demir ve Celik Fabrikalari TAS* | 235,290 | 588,044 | ||||||
Fortescue Metals Group Ltd. | 217,775 | 749,607 | ||||||
Kumba Iron Ore Ltd. | 29,512 | 634,838 | ||||||
Novolipetsk Steel PJSC | 99,200 | 253,861 | ||||||
Rio Tinto plc | 12,710 | 690,791 | ||||||
Severstal PJSC | 58,280 | 936,450 | ||||||
Vedanta Ltd. | 180,482 | 806,950 | ||||||
6,106,007 | ||||||||
Multi-Utilities – 1.6% | ||||||||
Centrica plc | 519,250 | 1,099,961 | ||||||
Engie SA | 15,407 | 270,844 | ||||||
1,370,805 | ||||||||
Oil, Gas & Consumable Fuels – 9.4% | ||||||||
AltaGas Ltd.(a) | 9,052 | 174,763 | ||||||
BP plc | 193,657 | 1,435,026 | ||||||
China Petroleum & Chemical Corp., Class H | 1,240,000 | 1,211,837 | ||||||
Enagas SA | 5,921 | 172,691 | ||||||
Enbridge, Inc. | 4,061 | 123,197 | ||||||
Eni SpA | 25,885 | 506,643 | ||||||
Inter Pipeline Ltd. | 49,259 | 889,540 | ||||||
Pembina Pipeline Corp. | 7,130 | 227,424 | ||||||
PTT Exploration & Production PCL, NVDR | 173,600 | 737,085 | ||||||
Repsol SA | 13,423 | 257,050 | ||||||
Statoil ASA | 14,495 | 371,824 |
Investments | Shares | Value | ||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Tatneft PJSC (Preference) | 29,357 | $ | 221,661 | |||||
TOTAL SA(a) | 24,507 | 1,549,458 | ||||||
Tupras Turkiye Petrol Rafinerileri A/S | 7,285 | 185,474 | ||||||
Vermilion Energy, Inc.(a) | 6,169 | 208,849 | ||||||
8,272,522 | ||||||||
Paper & Forest Products – 0.6% | ||||||||
Shandong Chenming Paper Holdings Ltd., Class H* (a) | 124,000 | 189,597 | ||||||
UPM-Kymmene OYJ | 8,525 | 305,701 | ||||||
495,298 | ||||||||
Personal Products – 1.1% | ||||||||
Kose Corp. | 5,000 | 925,291 | ||||||
Pharmaceuticals – 5.3% | ||||||||
AstraZeneca plc | 13,144 | 923,841 | ||||||
Bayer AG (Registered) | 589 | 70,651 | ||||||
GlaxoSmithKline plc | 97,650 | 1,965,556 | ||||||
Novartis AG (Registered) | 8,215 | 636,519 | ||||||
Roche Holding AG | 1,798 | 401,140 | ||||||
Roche Holding AG – BR | 961 | 219,984 | ||||||
Sanofi | 5,673 | 450,933 | ||||||
4,668,624 | ||||||||
Real Estate Management & Development – 1.1% | ||||||||
Land & Houses PCL, NVDR | 685,100 | 238,787 | ||||||
Red Star Macalline Group Corp. Ltd., Class H(a) (b) | 148,800 | 201,351 | ||||||
Shimao Property Holdings Ltd. | 108,500 | 291,011 | ||||||
Wharf Holdings Ltd. (The) | 62,000 | 207,371 | ||||||
938,520 | ||||||||
Semiconductors & Semiconductor Equipment – 3.7% | ||||||||
Novatek Microelectronics Corp. | 217,000 | 916,803 | ||||||
Rohm Co. Ltd. | 2,000 | 186,795 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 19,000 | 145,776 | ||||||
Tokyo Electron Ltd. | 6,200 | 1,192,972 | ||||||
Vanguard International Semiconductor Corp. | 403,000 | 822,713 | ||||||
3,265,059 |
See Accompanying Notes to the Financial Statements.
256 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Investments | Shares | Value | ||||||
COMMON STOCKS – (continued) | ||||||||
Specialty Retail – 1.3% | ||||||||
CECONOMY AG | 17,577 | $ | 197,415 | |||||
Hennes & Mauritz AB, Class B(a) | 53,661 | 919,534 | ||||||
1,116,949 | ||||||||
Technology Hardware, Storage & Peripherals – 3.1% | ||||||||
Asustek Computer, Inc. | 24,000 | 225,508 | ||||||
Catcher Technology Co. Ltd. | 39,000 | 436,314 | ||||||
Compal Electronics, Inc. | 279,000 | 182,941 | ||||||
Inventec Corp. | 248,000 | 189,019 | ||||||
Lenovo Group Ltd.(a) | 372,000 | 177,747 | ||||||
Lite-On Technology Corp.* | 155,000 | 205,626 | ||||||
Pegatron Corp. | 341,000 | 801,024 | ||||||
Quanta Computer, Inc. | 93,000 | 170,054 | ||||||
Samsung Electronics Co. Ltd.(c) | 124 | 307,663 | ||||||
2,695,896 | ||||||||
Textiles, Apparel & Luxury Goods – 1.9% | ||||||||
HUGO BOSS AG | 7,750 | 728,484 | ||||||
Li & Fung Ltd.(a) | 1,798,000 | 909,510 | ||||||
1,637,994 | ||||||||
Tobacco – 2.9% | ||||||||
British American Tobacco plc | 14,074 | 775,199 | ||||||
Imperial Brands plc | 27,187 | 975,281 | ||||||
Japan Tobacco, Inc. | 27,900 | 748,717 | ||||||
2,499,197 | ||||||||
Trading Companies & Distributors – 0.9% | ||||||||
ITOCHU Corp.(a) | 18,600 | 372,935 | ||||||
Mitsubishi Corp. | 15,500 | 428,773 | ||||||
801,708 | ||||||||
Transportation Infrastructure – 1.0% | ||||||||
Hutchison Port Holdings Trust(a) | 2,551,300 | 854,686 | ||||||
Wireless Telecommunication Services – 0.7% | ||||||||
MegaFon PJSC | 19,313 | 145,057 | ||||||
Millicom International Cellular SA, SDR | 2,604 | 173,938 | ||||||
StarHub Ltd. | 74,400 | 127,554 |
Investments | Shares | Value | ||||||
Wireless Telecommunication Services – (continued) | ||||||||
Turkcell Iletisim Hizmetleri A/S | 57,319 | $ | 196,832 | |||||
643,381 | ||||||||
Total Common Stocks (Cost $81,474,203) | 86,728,109 | |||||||
Principal Amount | ||||||||
SECURITIES LENDING REINVESTMENTS(d) – 0.1% | ||||||||
REPURCHASE AGREEMENTS – 0.1% | ||||||||
Citigroup Global Markets, Inc., 1.71%, dated 4/30/2018, due 5/1/2018, repurchase price $27,537, collateralized by various U.S. Treasury Securities, 2.63%, maturing 11/15/2020 – 2/28/2023; total market value $27,915 | $ | 27,536 | 27,536 | |||||
Citigroup Global Markets, Inc., 1.94%, dated 4/30/2018, due 5/1/2018, repurchase price $50,003, collateralized by various U.S. Treasury Securities, 1.84%, maturing 1/31/2020; Common Stocks; total market value $54,563 | 50,000 | 50,000 | ||||||
NBC Global Finance Ltd., 1.86%, dated 4/30/2018, due 5/1/2018, repurchase price $18,783, collateralized by various Common Stocks; total market value $20,747 | 18,782 | 18,782 | ||||||
96,318 | ||||||||
Total Securities Lending Reinvestments (Cost $96,318) | 96,318 | |||||||
Total Investments – 99.1% (Cost $81,570,521) | 86,824,427 | |||||||
Other Assets Less Liabilities – 0.9% |
| 806,270 | ||||||
NET ASSETS – 100.0% | $ | 87,630,697 |
* | Non-income producing security. |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 257 |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
(a) | The security or a portion of this security is on loan at April 30, 2018. The total value of securities on loan at April 30, 2018 was $5,144,979, collateralized in the form of cash with a value of $96,318 that was reinvested in the securities shown in the Securities Lending Reinvestment section of the Schedule of Investments; $2,194,775 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 6.25%, and maturity dates ranging from May 24, 2018 – November 15, 2047 and $3,213,624 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.50%, and maturity dates ranging from May 8, 2018 – July 22, 2068; a total value of $5,504,717. |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(c) | Security fair valued as of April 30, 2018 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at April 30, 2018 amounted to $307,663, which represents approximately 0.35% of net assets of the Fund. |
(d) | The security was purchased with cash collateral held from securities on loan at April 30, 2018. The total value of securities purchased was $96,318. |
Percentages shown are based on Net Assets.
Abbreviations
NVDR – Non-Voting Depositary Receipt
OYJ – Public Limited Company
PJSC – Public Joint Stock Company
Preference – A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference.
SDR – Swedish Depositary Receipt
As of April 30, 2018, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 8,392,974 | ||
Aggregate gross unrealized depreciation | (3,316,957 | ) | ||
Net unrealized appreciation | $ | 5,076,017 | ||
Federal income tax cost | $ | 81,747,998 |
Futures Contracts
FlexShares® International Quality Dividend Dynamic Index Fund had the following open futures contracts as of April 30, 2018:
Number of Contracts | Expiration Date | Trading Currency | Notional Amount | Value and Unrealized Appreciation/ (Depreciation)* | ||||||||||||||||
Long Contracts |
| |||||||||||||||||||
MSCI EAFE E-Mini Index | 6 | 06/15/2018 | USD | $ | 607,950 | $ | 6,305 | |||||||||||||
MSCI Emerging Markets E-Mini Index | 4 | 06/15/2018 | USD | 230,440 | (6,717 | ) | ||||||||||||||
$ | (412 | ) |
* | This amount represents the cumulative appreciation/depreciation on futures contracts. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
Abbreviations:
USD — US Dollar
FlexShares® International Quality Dividend Dynamic Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 6.2 | % | ||
Belgium | 0.7 | |||
Brazil | 3.4 | |||
Canada | 4.8 | |||
China | 4.9 | |||
Czech Republic | 1.3 | |||
Finland | 1.6 | |||
France | 5.2 |
See Accompanying Notes to the Financial Statements.
258 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® International Quality Dividend Dynamic Index Fund (cont.)
Germany | 3.8 | % | ||
Greece | 0.3 | |||
Hong Kong | 2.2 | |||
India | 1.5 | |||
Israel | 0.9 | |||
Italy | 3.5 | |||
Japan | 14.0 | |||
Malaysia | 1.0 | |||
Netherlands | 2.0 | |||
Norway | 2.7 | |||
Poland | 0.2 | |||
Portugal | 0.2 | |||
Russia | 4.1 | |||
Singapore | 1.1 | |||
South Africa | 2.3 | |||
South Korea | 0.5 | |||
Spain | 3.1 | |||
Sweden | 3.0 | |||
Switzerland | 3.3 | |||
Taiwan | 5.0 | |||
Thailand | 1.1 | |||
Turkey | 1.1 | |||
United Kingdom | 14.0 | |||
Other1 | 1.0 | |||
100.0 | % |
1 | Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 259 |
Table of Contents
Schedule of Investments
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund
April 30, 2018 (Unaudited)
Investments | Principal Amount | Value | ||||||
U.S. TREASURY OBLIGATIONS – 99.8% | ||||||||
U.S. Treasury Inflation Linked Bonds |
| |||||||
2.38%, 1/15/2025 | $ | 79,275,614 | $ | 88,045,832 | ||||
U.S. Treasury Inflation Linked Notes |
| |||||||
1.88%, 7/15/2019 | 38,091,636 | 38,935,770 | ||||||
1.38%, 1/15/2020 | 47,009,024 | 47,789,609 | ||||||
0.13%, 4/15/2020 | 114,454,596 | 113,514,411 | ||||||
1.25%, 7/15/2020 | 79,506,401 | 81,171,049 | ||||||
1.13%, 1/15/2021 | 89,324,876 | 90,824,155 | ||||||
0.13%, 4/15/2021 | 101,567,090 | 100,171,535 | ||||||
0.63%, 7/15/2021 | 197,428,085 | 198,594,838 | ||||||
0.13%, 1/15/2022 | 226,450,085 | 222,717,054 | ||||||
0.13%, 4/15/2022 | 226,860,251 | 222,239,095 | ||||||
0.13%, 7/15/2022 | 221,349,952 | 217,762,551 | ||||||
0.13%, 1/15/2023 | 220,455,963 | 215,381,968 | ||||||
0.63%, 4/15/2023 | 38,838,375 | 38,740,217 | ||||||
0.38%, 7/15/2023 | 94,089,644 | 93,133,614 | ||||||
0.63%, 1/15/2024 | 93,735,821 | 93,544,343 | ||||||
0.13%, 7/15/2024 | 92,131,753 | 89,320,953 | ||||||
0.25%, 1/15/2025 | 92,246,310 | 89,520,501 | ||||||
0.38%, 7/15/2025 | 92,396,480 | 90,533,958 | ||||||
Total U.S. Treasury Obligations (Cost $2,151,419,961) | 2,131,941,453 | |||||||
Total Investments – 99.8% (Cost $2,151,419,961) | 2,131,941,453 | |||||||
Other Assets Less Liabilities – 0.2% |
| 4,541,231 | ||||||
NET ASSETS – 100.0% | $ | 2,136,482,684 |
Percentages shown are based on Net Assets.
As of April 30, 2018, 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 | $ | 44,409 | ||
Aggregate gross unrealized depreciation | (20,790,696 | ) | ||
Net unrealized depreciation | $ | (20,746,287 | ) | |
Federal income tax cost | $ | 2,152,687,740 |
See Accompanying Notes to the Financial Statements.
260 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund
April 30, 2018 (Unaudited)
Investments | Principal Amount | Value | ||||||
U.S. TREASURY OBLIGATIONS – 99.6% | ||||||||
U.S. Treasury Inflation Linked Bonds |
| |||||||
2.38%, 1/15/2025 | $ | 40,387,435 | $ | 44,855,475 | ||||
2.00%, 1/15/2026 | 47,789,304 | 52,416,605 | ||||||
2.38%, 1/15/2027 | 38,756,605 | 44,121,979 | ||||||
1.75%, 1/15/2028 | 20,293,979 | 22,170,041 | ||||||
3.63%, 4/15/2028 | 28,248,908 | 35,969,546 | ||||||
2.50%, 1/15/2029 | 17,917,674 | 21,081,342 | ||||||
3.88%, 4/15/2029 | 32,609,553 | 43,091,393 | ||||||
3.38%, 4/15/2032 | 7,659,124 | 10,225,704 | ||||||
U.S. Treasury Inflation Linked Notes |
| |||||||
0.13%, 7/15/2022 | 46,631,446 | 45,875,694 | ||||||
0.13%, 1/15/2023 | 48,291,689 | 47,180,212 | ||||||
0.63%, 4/15/2023 | 19,722,417 | 19,672,571 | ||||||
0.38%, 7/15/2023 | 47,901,836 | 47,415,113 | ||||||
0.63%, 1/15/2024 | 47,776,030 | 47,678,436 | ||||||
0.13%, 7/15/2024 | 46,951,961 | 45,519,528 | ||||||
0.25%, 1/15/2025 | 47,066,117 | 45,675,349 | ||||||
0.38%, 7/15/2025 | 81,995,576 | 80,342,715 | ||||||
0.63%, 1/15/2026 | 84,679,991 | 84,043,137 | ||||||
0.13%, 7/15/2026 | 72,874,208 | 69,615,098 | ||||||
0.38%, 1/15/2027 | 43,312,955 | 41,978,127 | ||||||
0.38%, 7/15/2027 | 41,035,832 | 39,808,226 | ||||||
0.50%, 1/15/2028 | 28,561,822 | 27,876,309 | ||||||
Total U.S. Treasury Obligations (Cost $930,076,840) | 916,612,600 | |||||||
Total Investments – 99.6% (Cost $930,076,840) | 916,612,600 | |||||||
Other Assets Less Liabilities – 0.4% |
| 3,304,444 | ||||||
NET ASSETS – 100.0% | $ | 919,917,044 |
Percentages shown are based on Net Assets.
As of April 30, 2018, 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 | $ | 24,236 | ||
Aggregate gross unrealized depreciation | (14,235,708 | ) | ||
Net unrealized depreciation | $ | (14,211,472 | ) | |
Federal income tax cost | $ | 930,824,072 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 261 |
Table of Contents
Schedule of Investments
FlexShares® Disciplined Duration MBS Index Fund
April 30, 2018 (Unaudited)
Investments | Principal Amount | Value | ||||||
MORTGAGE-BACKED SECURITIES – 99.5% | ||||||||
FHLMC |
| |||||||
4.00%, 9/1/2024 | $ | 197,278 | $ | 203,029 | ||||
4.00%, 4/1/2025 | 177,296 | 182,069 | ||||||
3.50%, 10/1/2025 | 332,541 | 336,940 | ||||||
4.00%, 10/1/2025 | 168,349 | 173,284 | ||||||
3.50%, 2/1/2026 | 106,399 | 107,915 | ||||||
4.00%, 3/1/2026 | 200,693 | 208,493 | ||||||
4.00%, 4/1/2026 | 598,322 | 615,850 | ||||||
3.50%, 10/1/2026 | 139,603 | 141,582 | ||||||
3.50%, 12/1/2026 | 221,400 | 224,426 | ||||||
3.50%, 8/1/2027 | 220,673 | 223,592 | ||||||
2.50%, 10/1/2027 | 123,953 | 121,410 | ||||||
2.50%, 2/1/2028 | 60,956 | 59,705 | ||||||
2.50%, 4/1/2028 | 135,144 | 132,370 | ||||||
2.50%, 11/1/2028 | 24,269 | 23,772 | ||||||
3.00%, 6/1/2029 | 95,212 | 94,552 | ||||||
6.50%, 12/1/2029 | 132,128 | 148,936 | ||||||
2.00%, 11/1/2031 | 290,360 | 275,430 | ||||||
2.00%, 3/1/2032 | 178,705 | 169,511 | ||||||
5.50%, 10/1/2032 | 132,298 | 145,024 | ||||||
3.00%, 4/1/2033 | 67,912 | 67,430 | ||||||
6.00%, 4/1/2034 | 82,903 | 92,456 | ||||||
6.50%, 7/1/2034 | 111,173 | 125,317 | ||||||
3.00%, 5/1/2035 | 332,392 | 327,770 | ||||||
6.00%, 5/1/2035 | 270,021 | 303,757 | ||||||
5.50%, 6/1/2035 | 65,225 | 70,807 | ||||||
5.00%, 7/1/2035 | 78,646 | 84,260 | ||||||
5.50%, 10/1/2035 | 40,602 | 44,485 | ||||||
6.00%, 12/1/2035 | 143,842 | 160,480 | ||||||
5.50%, 1/1/2036 | 188,820 | 206,836 | ||||||
6.00%, 5/1/2036 | 305,515 | 340,340 | ||||||
5.50%, 12/1/2036 | 180,738 | 197,667 | ||||||
5.50%, 2/1/2037 | 54,474 | 59,227 | ||||||
6.00%, 4/1/2037 | 75,906 | 84,183 | ||||||
5.50%, 7/1/2037 | 133,914 | 146,548 | ||||||
5.50%, 9/1/2037 | 61,329 | 67,110 | ||||||
6.00%, 9/1/2037 | 255,210 | 284,699 | ||||||
6.50%, 12/1/2037 | 57,586 | 64,910 | ||||||
5.50%, 1/1/2038 | 31,728 | 34,697 | ||||||
5.00%, 7/1/2038 | 84,739 | 90,790 | ||||||
5.50%, 7/1/2038 | 6,851 | 7,495 | ||||||
5.00%, 10/1/2038 | 62,150 | 66,600 | ||||||
5.50%, 12/1/2038 | 21,636 | 23,565 | ||||||
6.50%, 12/1/2038 | 119,489 | 134,707 |
Investments | Principal Amount | Value | ||||||
5.00%, 2/1/2039 | $ | 899,020 | $ | 960,233 | ||||
5.50%, 3/1/2039 | 178,359 | 195,016 | ||||||
6.50%, 4/1/2039 | 53,632 | 60,453 | ||||||
5.00%, 5/1/2039 | 143,087 | 154,915 | ||||||
5.00%, 8/1/2039 | 10,928 | 11,717 | ||||||
5.00%, 9/1/2039 | 13,812 | 14,801 | ||||||
4.50%, 10/1/2039 | 26,782 | 28,186 | ||||||
5.50%, 1/1/2040 | 105,711 | 115,485 | ||||||
4.00%, 2/1/2040 | 15,819 | 16,256 | ||||||
4.50%, 4/1/2040 | 167,644 | 176,551 | ||||||
6.00%, 4/1/2040 | 115,042 | 127,712 | ||||||
6.00%, 5/1/2040 | 248,793 | 275,985 | ||||||
5.50%, 6/1/2040 | 77,287 | 83,676 | ||||||
6.00%, 7/1/2040 | 590,051 | 655,979 | ||||||
3.50%, 12/1/2040 | 172,939 | 173,201 | ||||||
4.00%, 1/1/2041 | 125,872 | 129,435 | ||||||
4.50%, 3/1/2041 | 177,907 | 187,354 | ||||||
5.50%, 4/1/2041 | 33,608 | 36,501 | ||||||
5.50%, 6/1/2041 | 752,525 | 822,546 | ||||||
4.50%, 8/1/2041 | 165,336 | 174,121 | ||||||
3.50%, 11/1/2041 | 239,931 | 240,294 | ||||||
5.00%, 2/1/2042 | 162,653 | 174,428 | ||||||
4.00%, 4/1/2042 | 125,827 | 129,391 | ||||||
3.00%, 3/1/2043 | 38,929 | 37,873 | ||||||
3.00%, 4/1/2043 | 134,140 | 130,510 | ||||||
2.50%, 6/1/2043 | 346,850 | 322,919 | ||||||
3.00%, 6/1/2043 | 202,294 | 196,749 | ||||||
4.50%, 3/1/2044 | 114,070 | 119,348 | ||||||
4.00%, 6/1/2044 | 18,996 | 19,446 | ||||||
4.50%, 7/1/2044 | 197,875 | 207,162 | ||||||
4.00%, 8/1/2044 | 55,694 | 57,013 | ||||||
4.50%, 9/1/2044 | 87,486 | 91,775 | ||||||
4.50%, 12/1/2044 | 45,442 | 47,418 | ||||||
3.00%, 7/1/2045 | 115,507 | 111,776 | ||||||
4.50%, 9/1/2045 | 100,089 | 104,330 | ||||||
4.00%, 10/1/2045 | 209,144 | 214,094 | ||||||
3.00%, 4/1/2046 | 286,568 | 276,852 | ||||||
4.00%, 4/1/2046 | 104,339 | 106,806 | ||||||
3.50%, 5/1/2046 | 218,643 | 217,891 | ||||||
4.00%, 5/1/2046 | 117,435 | 120,212 | ||||||
4.50%, 5/1/2046 | 213,756 | 222,805 | ||||||
2.50%, 8/1/2046 | 432,979 | 403,072 | ||||||
4.50%, 3/1/2047 | 390,676 | 407,443 | ||||||
TBA 3.00%, 5/15/2048 | 300,000 | 289,216 | ||||||
TBA 3.50%, 5/15/2048 | 200,000 | 198,636 |
See Accompanying Notes to the Financial Statements.
262 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Disciplined Duration MBS Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
MORTGAGE-BACKED SECURITIES – (continued) | ||||||||
TBA 4.00%, 5/15/2048 | $ | 150,000 | $ | 152,848 | ||||
FNMA |
| |||||||
4.50%, 10/1/2018 | 10,803 | 10,888 | ||||||
4.00%, 12/1/2018 | 10,923 | 11,212 | ||||||
4.00%, 7/1/2019 | 1,688 | 1,733 | ||||||
4.50%, 10/1/2019 | 389 | 390 | ||||||
4.50%, 1/1/2020 | 46,357 | 46,720 | ||||||
4.50%, 4/1/2020 | 13,847 | 13,966 | ||||||
4.50%, 11/1/2020 | 80,205 | 80,843 | ||||||
4.50%, 4/1/2023 | 86,717 | 89,401 | ||||||
4.00%, 5/1/2024 | 145,216 | 149,080 | ||||||
4.50%, 8/1/2024 | 109,064 | 113,272 | ||||||
4.50%, 9/1/2024 | 209,690 | 217,772 | ||||||
4.00%, 1/1/2025 | 121,139 | 124,366 | ||||||
4.50%, 4/1/2025 | 276,531 | 287,212 | ||||||
3.50%, 9/1/2025 | 139,427 | 141,250 | ||||||
4.00%, 9/1/2025 | 171,842 | 176,424 | ||||||
3.50%, 11/1/2025 | 255,570 | 258,911 | ||||||
3.50%, 12/1/2025 | 180,766 | 183,129 | ||||||
3.00%, 1/1/2026 | 471,612 | 470,871 | ||||||
4.00%, 5/1/2026 | 338,237 | 347,514 | ||||||
2.50%, 11/1/2026 | 72,543 | 70,875 | ||||||
4.50%, 1/1/2027 | 66,374 | 68,382 | ||||||
2.50%, 6/1/2027 | 26,070 | 25,575 | ||||||
2.50%, 12/1/2027 | 149,969 | 146,614 | ||||||
3.00%, 3/1/2028 | 53,144 | 53,061 | ||||||
3.00%, 6/1/2028 | 60,453 | 60,209 | ||||||
3.00%, 7/1/2028 | 46,535 | 46,347 | ||||||
2.50%, 8/1/2028 | 84,792 | 83,129 | ||||||
2.50%, 9/1/2028 | 320,284 | 314,004 | ||||||
3.00%, 11/1/2028 | 46,055 | 45,870 | ||||||
4.00%, 7/1/2029 | 400,195 | 411,063 | ||||||
4.00%, 11/1/2029 | 179,084 | 183,855 | ||||||
3.00%, 9/1/2030 | 111,595 | 111,007 | ||||||
3.50%, 10/1/2030 | 156,103 | 156,292 | ||||||
3.50%, 11/1/2030 | 35,007 | 35,050 | ||||||
2.00%, 9/1/2031 | 334,819 | 317,966 | ||||||
6.00%, 12/1/2032 | 29,813 | 33,299 | ||||||
3.00%, 3/1/2033 | 225,838 | 222,828 | ||||||
3.00%, 7/1/2033 | 37,817 | 37,312 | ||||||
6.00%, 8/1/2034 | 110,724 | 123,588 | ||||||
6.50%, 9/1/2034 | 251,072 | 281,967 | ||||||
5.00%, 7/1/2035 | 131,708 | 141,423 | ||||||
5.00%, 11/1/2035 | 124,084 | 133,306 | ||||||
6.00%, 11/1/2035 | 48,068 | 53,582 | ||||||
5.00%, 2/1/2036 | 135,451 | 145,530 |
Investments | Principal Amount | Value | ||||||
5.50%, 12/1/2036 | $ | 140,774 | $ | 153,791 | ||||
5.50%, 1/1/2037 | 41,781 | 45,711 | ||||||
5.50%, 2/1/2037 | 12,154 | 13,182 | ||||||
6.00%, 8/1/2037 | 91,933 | 102,642 | ||||||
6.00%, 9/1/2037 | 358,651 | 404,520 | ||||||
6.00%, 12/1/2037 | 413,043 | 460,715 | ||||||
5.50%, 6/1/2038 | 353,085 | 386,170 | ||||||
5.50%, 9/1/2038 | 42,488 | 46,448 | ||||||
6.00%, 9/1/2038 | 73,170 | 81,611 | ||||||
5.50%, 11/1/2038 | 210,097 | 229,279 | ||||||
5.00%, 1/1/2039 | 14,190 | 15,199 | ||||||
5.50%, 3/1/2039 | 229,446 | 251,535 | ||||||
4.50%, 4/1/2039 | 139,096 | 146,381 | ||||||
5.50%, 1/1/2040 | 47,373 | 51,585 | ||||||
4.50%, 4/1/2040 | 24,869 | 26,186 | ||||||
5.50%, 4/1/2040 | 46,703 | 51,178 | ||||||
4.50%, 7/1/2040 | 247,260 | 260,368 | ||||||
4.00%, 9/1/2040 | 100,709 | 103,372 | ||||||
3.50%, 1/1/2041 | 44,199 | 44,225 | ||||||
3.50%, 2/1/2041 | 83,607 | 83,657 | ||||||
4.00%, 2/1/2041 | 177,071 | 181,786 | ||||||
4.50%, 2/1/2041 | 44,244 | 46,517 | ||||||
4.50%, 4/1/2041 | 119,789 | 126,139 | ||||||
5.50%, 4/1/2041 | 13,512 | 14,694 | ||||||
6.00%, 5/1/2041 | 237,055 | 263,893 | ||||||
4.50%, 6/1/2041 | 41,637 | 43,913 | ||||||
5.50%, 7/1/2041 | 103,973 | 113,498 | ||||||
6.00%, 7/1/2041 | 317,143 | 354,306 | ||||||
4.50%, 8/1/2041 | 51,518 | 54,454 | ||||||
5.00%, 8/1/2041 | 289,537 | 309,066 | ||||||
5.50%, 8/1/2041 | 163,460 | 177,344 | ||||||
5.50%, 9/1/2041 | 203,207 | 222,034 | ||||||
3.50%, 1/1/2042 | 151,868 | 151,959 | ||||||
4.00%, 1/1/2042 | 92,335 | 94,800 | ||||||
4.50%, 1/1/2042 | 55,236 | 58,143 | ||||||
3.00%, 4/1/2042 | 165,381 | 161,134 | ||||||
3.50%, 8/1/2042 | 163,080 | 163,127 | ||||||
2.50%, 10/1/2042 | 380,820 | 356,854 | ||||||
3.50%, 1/1/2043 | 113,602 | 113,588 | ||||||
3.00%, 2/1/2043 | 214,682 | 209,097 | ||||||
2.50%, 5/1/2043 | 351,694 | 329,439 | ||||||
3.00%, 5/1/2043 | 14,923 | 14,526 | ||||||
3.00%, 6/1/2043 | 122,317 | 119,047 | ||||||
3.50%, 7/1/2043 | 60,341 | 60,303 | ||||||
3.50%, 8/1/2043 | 111,150 | 111,079 | ||||||
4.00%, 8/1/2043 | 34,628 | 35,453 | ||||||
5.00%, 8/1/2043 | 224,466 | 239,460 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 263 |
Table of Contents
FlexShares® Disciplined Duration MBS Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
MORTGAGE-BACKED SECURITIES – (continued) | ||||||||
3.00%, 9/1/2043 | $ | 173,014 | $ | 168,474 | ||||
4.00%, 9/1/2043 | 34,746 | 35,651 | ||||||
4.50%, 9/1/2043 | 67,738 | 70,741 | ||||||
4.00%, 11/1/2043 | 148,356 | 151,790 | ||||||
5.00%, 1/1/2044 | 301,867 | 321,349 | ||||||
5.00%, 3/1/2044 | 117,930 | 127,942 | ||||||
5.00%, 5/1/2044 | 137,008 | 146,253 | ||||||
5.50%, 5/1/2044 | 468,888 | 513,438 | ||||||
5.00%, 6/1/2044 | 38,909 | 41,397 | ||||||
4.50%, 10/1/2044 | 202,494 | 212,210 | ||||||
3.00%, 2/1/2045 | 127,964 | 124,076 | ||||||
4.00%, 2/1/2045 | 98,465 | 100,522 | ||||||
3.00%, 4/1/2045 | 135,810 | 131,682 | ||||||
4.00%, 4/1/2045 | 67,891 | 69,664 | ||||||
3.00%, 5/1/2045 | 202,505 | 196,122 | ||||||
4.00%, 11/1/2045 | 135,308 | 138,814 | ||||||
4.00%, 3/1/2046 | 261,187 | 267,414 | ||||||
4.50%, 3/1/2046 | 195,887 | 204,317 | ||||||
3.50%, 5/1/2046 | 143,978 | 143,173 | ||||||
4.00%, 5/1/2046 | 249,160 | 254,108 | ||||||
4.50%, 7/1/2046 | 194,691 | 203,069 | ||||||
3.50%, 2/1/2047 | 96,578 | 96,038 | ||||||
4.50%, 2/1/2047 | 210,732 | 221,991 | ||||||
TBA 2.50%, 5/25/2048 | 975,000 | 908,400 | ||||||
TBA 3.00%, 5/25/2048 | 100,000 | 96,461 | ||||||
TBA 3.50%, 5/25/2048 | 325,000 | 322,689 | ||||||
GNMA |
| |||||||
2.50%, 4/20/2027 | 153,484 | 151,030 | ||||||
2.50%, 1/20/2028 | 84,396 | 83,045 | ||||||
3.00%, 3/20/2028 | 173,149 | 173,143 | ||||||
2.50%, 12/20/2028 | 34,811 | 34,254 | ||||||
2.50%, 3/20/2031 | 247,844 | 242,655 | ||||||
2.50%, 10/20/2031 | 123,471 | 120,879 | ||||||
6.00%, 11/15/2032 | 273,726 | 311,747 | ||||||
6.00%, 3/15/2033 | 270,086 | 302,676 | ||||||
5.50%, 6/15/2033 | 396,277 | 434,418 | ||||||
6.00%, 12/15/2033 | 206,559 | 238,142 | ||||||
5.50%, 3/15/2035 | 321,787 | 353,279 | ||||||
5.50%, 3/20/2036 | 280,082 | 303,743 | ||||||
5.50%, 3/20/2038 | 117,207 | 126,564 | ||||||
5.50%, 9/20/2038 | 117,434 | 125,508 | ||||||
5.50%, 2/20/2039 | 143,976 | 155,379 | ||||||
5.50%, 3/20/2039 | 109,253 | 116,702 | ||||||
5.00%, 5/15/2039 | 106,162 | 113,737 | ||||||
5.50%, 5/15/2039 | 73,628 | 79,916 |
Investments | Principal Amount | Value | ||||||
5.00%, 9/15/2039 | $ | 223,610 | $ | 239,539 | ||||
5.50%, 9/15/2039 | 29,718 | 32,270 | ||||||
4.00%, 9/20/2039 | 47,304 | 49,054 | ||||||
5.50%, 12/15/2039 | 82,475 | 89,546 | ||||||
5.00%, 1/20/2040 | 378,957 | 407,746 | ||||||
5.50%, 3/15/2040 | �� | 180,235 | 195,776 | |||||
5.00%, 4/15/2040 | 249,731 | 268,445 | ||||||
4.00%, 8/15/2040 | 25,855 | 26,716 | ||||||
4.00%, 10/15/2040 | 18,710 | 19,250 | ||||||
5.50%, 1/20/2041 | 48,908 | 53,321 | ||||||
4.00%, 3/15/2041 | 6,540 | 6,729 | ||||||
4.00%, 6/15/2041 | 205,080 | 210,940 | ||||||
3.50%, 9/15/2041 | 134,379 | 135,313 | ||||||
5.50%, 9/20/2041 | 171,352 | 185,197 | ||||||
3.50%, 11/20/2041 | 110,661 | 111,478 | ||||||
3.50%, 1/15/2042 | 32,403 | 32,629 | ||||||
5.50%, 2/20/2042 | 44,027 | 47,914 | ||||||
3.00%, 5/15/2042 | 97,012 | 95,056 | ||||||
3.50%, 6/15/2042 | 222,516 | 224,068 | ||||||
3.50%, 8/20/2042 | 58,076 | 58,504 | ||||||
3.00%, 10/15/2042 | 233,844 | 229,130 | ||||||
3.00%, 12/20/2042 | 137,886 | 135,019 | ||||||
3.50%, 12/20/2042 | 25,219 | 25,324 | ||||||
6.00%, 1/20/2043 | 476,391 | 527,866 | ||||||
3.00%, 2/20/2043 | 95,667 | 93,571 | ||||||
5.50%, 2/20/2043 | 26,044 | 28,178 | ||||||
2.50%, 3/20/2043 | 112,681 | 107,751 | ||||||
3.00%, 5/15/2043 | 268,284 | 263,778 | ||||||
2.50%, 5/20/2043 | 158,930 | 151,974 | ||||||
3.50%, 5/20/2043 | 124,871 | 125,129 | ||||||
3.50%, 6/15/2043 | 303,658 | 305,762 | ||||||
3.00%, 9/20/2043 | 154,482 | 151,431 | ||||||
5.00%, 1/20/2044 | 8,905 | 9,501 | ||||||
3.50%, 8/20/2044 | 128,839 | 129,446 | ||||||
4.00%, 9/15/2044 | 64,582 | 66,121 | ||||||
3.50%, 10/15/2044 | 99,603 | 100,131 | ||||||
3.50%, 10/20/2044 | 21,536 | 21,623 | ||||||
2.50%, 11/20/2044 | 142,458 | 136,248 | ||||||
4.00%, 12/15/2044 | 90,695 | 92,852 | ||||||
3.00%, 12/20/2044 | 67,174 | 65,883 | ||||||
3.50%, 12/20/2044 | 66,633 | 66,858 | ||||||
3.50%, 1/15/2045 | 291,272 | 292,245 | ||||||
3.00%, 1/20/2045 | 133,178 | 130,383 | ||||||
3.50%, 2/20/2045 | 88,807 | 89,106 | ||||||
3.00%, 3/15/2045 | 198,812 | 194,817 | ||||||
3.00%, 3/20/2045 | 104,060 | 101,876 | ||||||
3.50%, 5/15/2045 | 102,032 | 102,245 |
See Accompanying Notes to the Financial Statements.
264 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Disciplined Duration MBS Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
MORTGAGE-BACKED SECURITIES – (continued) | ||||||||
3.00%, 7/15/2045 | $ | 109,478 | $ | 106,955 | ||||
3.00%, 12/20/2045 | 158,766 | 155,434 | ||||||
3.50%, 12/20/2045 | 303,129 | 304,128 | ||||||
4.00%, 3/15/2046 | 218,032 | 223,344 | ||||||
4.00%, 3/20/2046 | 268,278 | 276,202 | ||||||
3.50%, 4/20/2046 | 439,318 | 440,664 | ||||||
4.00%, 5/20/2046 | 254,325 | 261,724 | ||||||
4.00%, 7/15/2046 | 277,546 | 285,522 | ||||||
3.00%, 9/20/2046 | 172,491 | 168,774 | ||||||
2.50%, 12/20/2046 | 304,345 | 287,900 | ||||||
3.00%, 12/20/2046 | 178,241 | 174,220 | ||||||
5.50%, 5/20/2047 | 264,784 | 282,394 | ||||||
TBA 3.00%, 5/15/2048 | 300,000 | 292,441 | ||||||
TBA 4.00%, 5/15/2048 | 225,000 | 230,150 | ||||||
Total Mortgage-Backed Securities (Cost $48,470,892) | 47,243,145 | |||||||
Total Investments – 99.5% (Cost $48,470,892) | 47,243,145 | |||||||
Other Assets Less Liabilities – 0.5% |
| 252,523 | ||||||
NET ASSETS – 100.0% | $ | 47,495,668 |
Percentages shown are based on Net Assets.
Abbreviations
FHLMC – Federal Home Loan Mortgage Corp.
FNMA – Federal National Mortgage Association
GNMA – Government National Mortgage Association
TBA – To Be Announced; Security is subject to delayed delivery.
As of April 30, 2018, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments (including derivative instruments, if applicable) for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 18,250 | ||
Aggregate gross unrealized depreciation | (1,248,806 | ) | ||
Net unrealized depreciation | $ | (1,230,556 | ) | |
Federal income tax cost | $ | 48,473,701 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 265 |
Table of Contents
Schedule of Investments
FlexShares® Credit-Scored US Corporate Bond Index Fund
April 30, 2018 (Unaudited)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – 98.8% | ||||||||
Aerospace & Defense – 1.2% | ||||||||
Lockheed Martin Corp. | ||||||||
3.35%, 9/15/2021 | $ | 155,000 | $ | 156,002 | ||||
3.55%, 1/15/2026 | 70,000 | 69,103 | ||||||
Northrop Grumman Corp. | ||||||||
2.93%, 1/15/2025 | 200,000 | 189,890 | ||||||
3.20%, 2/1/2027 | 50,000 | 47,475 | ||||||
Rockwell Collins, Inc. | ||||||||
3.50%, 3/15/2027 | 100,000 | 95,153 | ||||||
United Technologies Corp. | ||||||||
3.13%, 5/4/2027 | 150,000 | 138,706 | ||||||
696,329 | ||||||||
Air Freight & Logistics – 0.3% | ||||||||
FedEx Corp. | ||||||||
3.20%, 2/1/2025 | 130,000 | 125,666 | ||||||
United Parcel Service, Inc. | ||||||||
2.45%, 10/1/2022 | 80,000 | 77,627 | ||||||
203,293 | ||||||||
Banks – 32.0% | ||||||||
Australia & New Zealand Banking Group Ltd. | ||||||||
2.30%, 6/1/2021 | 250,000 | 242,999 | ||||||
Banco Santander SA | ||||||||
3.13%, 2/23/2023 | 200,000 | 192,306 | ||||||
Bank of America Corp. | ||||||||
2.50%, 10/21/2022 | 700,000 | 669,697 | ||||||
3.30%, 1/11/2023 | 400,000 | 395,670 | ||||||
3.12%, 1/20/2023(a) | 250,000 | 246,219 | ||||||
4.20%, 8/26/2024 | 320,000 | 320,834 | ||||||
4.00%, 1/22/2025 | 255,000 | 252,262 | ||||||
3.88%, 8/1/2025 | 250,000 | 248,053 | ||||||
3.50%, 4/19/2026 | 150,000 | 145,000 | ||||||
3.82%, 1/20/2028(a) | 200,000 | 195,162 | ||||||
Bank of Montreal | ||||||||
1.90%, 8/27/2021 | 150,000 | 143,632 | ||||||
Bank of Nova Scotia (The) | ||||||||
2.45%, 3/22/2021 | 150,000 | 146,955 | ||||||
2.70%, 3/7/2022 | 200,000 | 195,034 | ||||||
Barclays plc | ||||||||
3.20%, 8/10/2021 | 200,000 | 197,420 |
Investments | Principal Amount | Value | ||||||
Banks – (continued) | ||||||||
3.65%, 3/16/2025 | $ | 200,000 | $ | 191,161 | ||||
4.38%, 1/12/2026 | 200,000 | 198,190 | ||||||
BB&T Corp. | ||||||||
2.85%, 10/26/2024 | 150,000 | 143,098 | ||||||
BNP Paribas SA | ||||||||
5.00%, 1/15/2021 | 95,000 | 99,699 | ||||||
Citigroup, Inc. | ||||||||
2.65%, 10/26/2020 | 600,000 | 592,979 | ||||||
2.70%, 3/30/2021 | 425,000 | 418,457 | ||||||
4.50%, 1/14/2022 | 150,000 | 155,538 | ||||||
3.50%, 5/15/2023 | 250,000 | 245,353 | ||||||
3.30%, 4/27/2025 | 200,000 | 191,995 | ||||||
4.40%, 6/10/2025 | 175,000 | 174,993 | ||||||
3.40%, 5/1/2026 | 150,000 | 141,892 | ||||||
3.20%, 10/21/2026 | 200,000 | 186,620 | ||||||
4.45%, 9/29/2027 | 150,000 | 149,337 | ||||||
3.89%, 1/10/2028(a) | 200,000 | 194,613 | ||||||
3.67%, 7/24/2028(a) | 155,000 | 148,051 | ||||||
Citizens Financial Group, Inc. | ||||||||
4.30%, 12/3/2025 | 60,000 | 59,991 | ||||||
Credit Suisse Group Funding Guernsey Ltd. | ||||||||
3.45%, 4/16/2021 | 250,000 | 249,440 | ||||||
3.80%, 9/15/2022 | 250,000 | 250,245 | ||||||
Discover Bank | ||||||||
3.10%, 6/4/2020 | 250,000 | 248,867 | ||||||
3.20%, 8/9/2021 | 250,000 | 247,055 | ||||||
Fifth Third Bancorp | ||||||||
2.88%, 7/27/2020 | 120,000 | 119,562 | ||||||
3.50%, 3/15/2022 | 295,000 | 295,083 | ||||||
HSBC Holdings plc | ||||||||
4.00%, 3/30/2022 | 210,000 | 214,373 | ||||||
3.90%, 5/25/2026 | 200,000 | 197,862 | ||||||
4.04%, 3/13/2028(a) | 200,000 | 196,775 | ||||||
Huntington National Bank (The) | ||||||||
2.88%, 8/20/2020 | 150,000 | 149,272 | ||||||
JPMorgan Chase & Co. | ||||||||
2.55%, 3/1/2021 | 700,000 | 686,993 | ||||||
3.38%, 5/1/2023 | 520,000 | 509,518 | ||||||
3.13%, 1/23/2025 | 230,000 | 219,434 | ||||||
3.90%, 7/15/2025 | 250,000 | 248,894 | ||||||
3.30%, 4/1/2026 | 220,000 | 209,621 | ||||||
2.95%, 10/1/2026 | 250,000 | 231,638 |
See Accompanying Notes to the Financial Statements.
266 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Banks – (continued) | ||||||||
4.13%, 12/15/2026 | $ | 125,000 | $ | 123,963 | ||||
4.25%, 10/1/2027 | 125,000 | 123,703 | ||||||
3.78%, 2/1/2028(a) | 375,000 | 364,350 | ||||||
KeyCorp | ||||||||
5.10%, 3/24/2021 | 145,000 | 152,259 | ||||||
Lloyds Bank plc | ||||||||
6.38%, 1/21/2021 | 115,000 | 124,243 | ||||||
Lloyds Banking Group plc | ||||||||
3.10%, 7/6/2021 | 200,000 | 198,692 | ||||||
4.38%, 3/22/2028 | 200,000 | 199,410 | ||||||
Mitsubishi UFJ Financial Group, Inc. | ||||||||
2.95%, 3/1/2021 | 200,000 | 198,252 | ||||||
3.85%, 3/1/2026 | 200,000 | 199,225 | ||||||
3.68%, 2/22/2027 | 150,000 | 147,517 | ||||||
Mizuho Financial Group, Inc. | ||||||||
2.95%, 2/28/2022 | 200,000 | 195,461 | ||||||
2.60%, 9/11/2022 | 200,000 | 191,463 | ||||||
National Australia Bank Ltd. | ||||||||
2.63%, 7/23/2020 | 250,000 | 247,472 | ||||||
2.80%, 1/10/2022 | 250,000 | 245,233 | ||||||
PNC Financial Services Group, Inc. (The) | ||||||||
3.30%, 3/8/2022 | 380,000 | 378,716 | ||||||
3.90%, 4/29/2024 | 50,000 | 50,225 | ||||||
3.15%, 5/19/2027 | 250,000 | 237,278 | ||||||
Royal Bank of Canada | ||||||||
2.35%, 10/30/2020 | 150,000 | 147,331 | ||||||
Santander UK Group Holdings plc | ||||||||
2.88%, 10/16/2020 | 200,000 | 198,013 | ||||||
3.82%, 11/3/2028(a) | 200,000 | 188,017 | ||||||
Sumitomo Mitsui Financial Group, Inc. | ||||||||
2.06%, 7/14/2021 | 400,000 | 384,637 | ||||||
2.78%, 7/12/2022 | 200,000 | 194,084 | ||||||
3.78%, 3/9/2026 | 250,000 | 247,907 | ||||||
3.36%, 7/12/2027 | 150,000 | 143,597 | ||||||
SunTrust Banks, Inc. | ||||||||
2.90%, 3/3/2021 | 200,000 | 198,141 | ||||||
Svenska Handelsbanken AB | ||||||||
2.45%, 3/30/2021 | 250,000 | 244,431 | ||||||
Toronto-Dominion Bank (The) | ||||||||
2.50%, 12/14/2020 | 200,000 | 196,958 |
Investments | Principal Amount | Value | ||||||
Banks – (continued) | ||||||||
US Bancorp | ||||||||
Series X, 3.15%, 4/27/2027 | $ | 150,000 | $ | 142,394 | ||||
Wells Fargo & Co. | ||||||||
2.60%, 7/22/2020 | 200,000 | 197,974 | ||||||
3.50%, 3/8/2022 | 400,000 | 399,963 | ||||||
3.07%, 1/24/2023 | 250,000 | 243,483 | ||||||
4.48%, 1/16/2024 | 225,000 | 229,016 | ||||||
3.55%, 9/29/2025 | 200,000 | 193,778 | ||||||
3.58%, 5/22/2028(a) | 150,000 | 143,221 | ||||||
Westpac Banking Corp. | ||||||||
2.60%, 11/23/2020 | 300,000 | 296,051 | ||||||
2.85%, 5/13/2026 | 150,000 | 139,253 | ||||||
3.40%, 1/25/2028 | 150,000 | 143,569 | ||||||
18,807,122 | ||||||||
Beverages – 1.6% | ||||||||
Anheuser-Busch InBev Worldwide, Inc. | ||||||||
3.75%, 1/15/2022 | 145,000 | 147,551 | ||||||
Coca-Cola Co. (The) | ||||||||
1.88%, 10/27/2020 | 150,000 | 146,664 | ||||||
2.88%, 10/27/2025 | 80,000 | 76,558 | ||||||
Constellation Brands, Inc. | ||||||||
4.25%, 5/1/2023 | 150,000 | 153,175 | ||||||
3.70%, 12/6/2026 | 150,000 | 145,631 | ||||||
PepsiCo, Inc. | ||||||||
2.75%, 3/1/2023 | 150,000 | 147,062 | ||||||
3.60%, 3/1/2024 | 100,000 | 101,437 | ||||||
918,078 | ||||||||
Biotechnology – 3.9% | ||||||||
AbbVie, Inc. | ||||||||
2.90%, 11/6/2022 | 250,000 | 243,632 | ||||||
3.20%, 11/6/2022 | 240,000 | 236,247 | ||||||
3.60%, 5/14/2025 | 150,000 | 145,368 | ||||||
3.20%, 5/14/2026 | 100,000 | 93,509 | ||||||
Amgen, Inc. | ||||||||
2.70%, 5/1/2022 | 170,000 | 165,063 | ||||||
3.63%, 5/22/2024 | 100,000 | 99,787 | ||||||
Biogen, Inc. | ||||||||
3.63%, 9/15/2022 | 155,000 | 155,196 | ||||||
Celgene Corp. | ||||||||
2.88%, 8/15/2020 | 200,000 | 198,802 | ||||||
2.25%, 8/15/2021 | 150,000 | 144,641 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 267 |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
3.63%, 5/15/2024 | $ | 100,000 | $ | 97,913 | ||||
3.88%, 8/15/2025 | 280,000 | 275,156 | ||||||
Gilead Sciences, Inc. | ||||||||
3.70%, 4/1/2024 | 150,000 | 151,332 | ||||||
3.50%, 2/1/2025 | 225,000 | 222,976 | ||||||
2.95%, 3/1/2027 | 100,000 | 93,602 | ||||||
2,323,224 | ||||||||
Capital Markets – 9.1% | ||||||||
Bank of New York Mellon Corp. (The) | ||||||||
2.50%, 4/15/2021 | 300,000 | 294,763 | ||||||
Series 0012, 3.65%, 2/4/2024 | 300,000 | 301,572 | ||||||
3.40%, 1/29/2028 | 150,000 | 145,124 | ||||||
BlackRock, Inc. | ||||||||
3.20%, 3/15/2027 | 100,000 | 96,240 | ||||||
Deutsche Bank AG | ||||||||
3.70%, 5/30/2024 | 145,000 | 138,411 | ||||||
Goldman Sachs Group, Inc. (The) | ||||||||
2.35%, 11/15/2021 | 250,000 | 241,474 | ||||||
5.75%, 1/24/2022 | 210,000 | 226,107 | ||||||
3.00%, 4/26/2022 | 400,000 | 391,144 | ||||||
3.63%, 1/22/2023 | 300,000 | 299,086 | ||||||
4.00%, 3/3/2024 | 210,000 | 211,128 | ||||||
3.50%, 1/23/2025 | 255,000 | 246,653 | ||||||
3.27%, 9/29/2025(a) | 300,000 | 285,560 | ||||||
3.85%, 1/26/2027 | 100,000 | 96,658 | ||||||
Intercontinental Exchange, Inc. | ||||||||
2.75%, 12/1/2020 | 150,000 | 148,676 | ||||||
Morgan Stanley | ||||||||
5.75%, 1/25/2021 | 400,000 | 425,382 | ||||||
2.63%, 11/17/2021 | 400,000 | 389,683 | ||||||
2.75%, 5/19/2022 | 600,000 | 582,390 | ||||||
3.75%, 2/25/2023 | 200,000 | 200,850 | ||||||
4.00%, 7/23/2025 | 100,000 | 99,794 | ||||||
3.88%, 1/27/2026 | 200,000 | 197,314 | ||||||
State Street Corp. | ||||||||
2.55%, 8/18/2020 | 150,000 | 148,888 | ||||||
3.10%, 5/15/2023 | 200,000 | 197,087 | ||||||
5,363,984 |
Investments | Principal Amount | Value | ||||||
Chemicals – 0.9% | ||||||||
Dow Chemical Co. (The) | ||||||||
4.25%, 11/15/2020 | $ | 165,000 | $ | 169,066 | ||||
EI du Pont de Nemours & Co. | ||||||||
4.25%, 4/1/2021 | 100,000 | 102,956 | ||||||
LYB International Finance BV | ||||||||
4.00%, 7/15/2023 | 130,000 | 131,296 | ||||||
Sherwin-Williams Co. (The) | ||||||||
2.75%, 6/1/2022 | 150,000 | 145,521 | ||||||
548,839 | ||||||||
Commercial Services & Supplies – 0.3% | ||||||||
Republic Services, Inc. | ||||||||
3.55%, 6/1/2022 | 100,000 | 100,167 | ||||||
Waste Management, Inc. | ||||||||
3.13%, 3/1/2025 | 105,000 | 100,893 | ||||||
201,060 | ||||||||
Communications Equipment – 0.3% | ||||||||
Cisco Systems, Inc. | ||||||||
2.95%, 2/28/2026 | 100,000 | 96,144 | ||||||
Motorola Solutions, Inc. | ||||||||
3.75%, 5/15/2022 | 100,000 | 99,546 | ||||||
195,690 | ||||||||
Consumer Finance – 4.3% | ||||||||
American Express Co. | ||||||||
3.00%, 10/30/2024 | 200,000 | 190,638 | ||||||
3.63%, 12/5/2024 | 140,000 | 137,335 | ||||||
American Express Credit Corp. | ||||||||
Series F, 2.60%, 9/14/2020 | 195,000 | 193,129 | ||||||
American Honda Finance Corp. | ||||||||
2.45%, 9/24/2020 | 125,000 | 123,605 | ||||||
1.70%, 9/9/2021 | 155,000 | 147,866 | ||||||
Capital One Financial Corp. | ||||||||
3.50%, 6/15/2023 | 200,000 | 196,061 | ||||||
4.20%, 10/29/2025 | 300,000 | 293,530 | ||||||
3.75%, 7/28/2026 | 150,000 | 140,650 | ||||||
3.75%, 3/9/2027 | 100,000 | 95,102 | ||||||
General Motors Financial Co., Inc. | ||||||||
3.20%, 7/6/2021 | 150,000 | 148,254 | ||||||
4.38%, 9/25/2021 | 300,000 | 306,960 | ||||||
3.95%, 4/13/2024 | 250,000 | 245,687 | ||||||
Synchrony Financial | ||||||||
4.25%, 8/15/2024 | 150,000 | 147,783 |
See Accompanying Notes to the Financial Statements.
268 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Consumer Finance – (continued) | ||||||||
Toyota Motor Credit Corp. | ||||||||
1.90%, 4/8/2021 | $ | 200,000 | $ | 194,170 | ||||
2,560,770 | ||||||||
Diversified Financial Services – 1.1% | ||||||||
Berkshire Hathaway, Inc. | ||||||||
2.20%, 3/15/2021 | 165,000 | 162,436 | ||||||
3.13%, 3/15/2026 | 130,000 | 125,380 | ||||||
Shell International Finance BV | ||||||||
1.88%, 5/10/2021 | 200,000 | 193,754 | ||||||
2.88%, 5/10/2026 | 175,000 | 166,634 | ||||||
648,204 | ||||||||
Diversified Telecommunication Services – 4.4% | ||||||||
AT&T, Inc. | ||||||||
2.45%, 6/30/2020 | 500,000 | 494,084 | ||||||
3.60%, 2/17/2023 | 1,000,000 | 995,877 | ||||||
Verizon Communications, Inc. | ||||||||
5.15%, 9/15/2023 | 650,000 | 699,769 | ||||||
4.13%, 3/16/2027 | 400,000 | 400,678 | ||||||
2,590,408 | ||||||||
Electric Utilities – 2.0% | ||||||||
Commonwealth Edison Co. | ||||||||
2.55%, 6/15/2026 | 50,000 | 46,263 | ||||||
Duke Energy Carolinas LLC | ||||||||
2.95%, 12/1/2026 | 100,000 | 95,198 | ||||||
Duke Energy Corp. | ||||||||
2.65%, 9/1/2026 | 100,000 | 90,803 | ||||||
Eversource Energy | ||||||||
Series K, 2.75%, 3/15/2022 | 150,000 | 146,213 | ||||||
Exelon Corp. | ||||||||
2.85%, 6/15/2020 | 180,000 | 178,297 | ||||||
NextEra Energy Capital Holdings, Inc. | ||||||||
3.55%, 5/1/2027 | 130,000 | 125,138 | ||||||
PPL Capital Funding, Inc. | ||||||||
3.10%, 5/15/2026 | 100,000 | 93,265 | ||||||
Southern Co. (The) | ||||||||
2.75%, 6/15/2020 | 100,000 | 99,132 | ||||||
3.25%, 7/1/2026 | 150,000 | 141,189 | ||||||
Virginia Electric & Power Co. | ||||||||
Series A, 3.15%, 1/15/2026 | 50,000 | 47,981 |
Investments | Principal Amount | Value | ||||||
Electric Utilities – (continued) | ||||||||
Series A, 3.50%, 3/15/2027 | $ | 100,000 | $ | 97,914 | ||||
1,161,393 | ||||||||
Energy Equipment & Services – 0.1% | ||||||||
Halliburton Co. | ||||||||
3.80%, 11/15/2025 | 75,000 | 74,610 | ||||||
Equity Real Estate Investment Trusts (REITs) – 2.8% | ||||||||
American Tower Corp. | ||||||||
5.05%, 9/1/2020 | 200,000 | 207,484 | ||||||
3.45%, 9/15/2021 | 145,000 | 144,720 | ||||||
Boston Properties LP | ||||||||
5.63%, 11/15/2020 | 120,000 | 126,487 | ||||||
3.65%, 2/1/2026 | 105,000 | 101,469 | ||||||
Digital Realty Trust LP | ||||||||
3.95%, 7/1/2022 | 74,000 | 74,672 | ||||||
ERP Operating LP | ||||||||
2.85%, 11/1/2026 | 100,000 | 92,704 | ||||||
HCP, Inc. | ||||||||
4.25%, 11/15/2023 | 150,000 | 151,707 | ||||||
Realty Income Corp. | ||||||||
3.65%, 1/15/2028 | 100,000 | 95,415 | ||||||
Simon Property Group LP | ||||||||
4.38%, 3/1/2021 | 142,000 | 146,105 | ||||||
3.75%, 2/1/2024 | 120,000 | 119,968 | ||||||
3.38%, 10/1/2024 | 200,000 | 194,773 | ||||||
Ventas Realty LP |
| |||||||
3.50%, 2/1/2025 | 50,000 | 48,130 | ||||||
Welltower, Inc. |
| |||||||
3.75%, 3/15/2023 | 30,000 | 29,955 | ||||||
4.25%, 4/1/2026 | 100,000 | 98,868 | ||||||
1,632,457 | ||||||||
Food & Staples Retailing – 4.5% | ||||||||
Costco Wholesale Corp. |
| |||||||
3.00%, 5/18/2027 | 75,000 | 71,473 | ||||||
CVS Health Corp. |
| |||||||
2.80%, 7/20/2020 | 200,000 | 198,869 | ||||||
3.35%, 3/9/2021 | 750,000 | 752,089 | ||||||
2.13%, 6/1/2021 | 150,000 | 144,788 | ||||||
4.00%, 12/5/2023 | 170,000 | 171,435 | ||||||
3.88%, 7/20/2025 | 155,000 | 152,781 | ||||||
4.30%, 3/25/2028 | 600,000 | 594,670 | ||||||
Sysco Corp. |
| |||||||
2.60%, 10/1/2020 | 150,000 | 148,384 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 269 |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Food & Staples Retailing – (continued) | ||||||||
3.25%, 7/15/2027 | $ | 100,000 | $ | 94,573 | ||||
Walgreens Boots Alliance, Inc. |
| |||||||
3.30%, 11/18/2021 | 105,000 | 104,684 | ||||||
3.45%, 6/1/2026 | 100,000 | 93,972 | ||||||
Walmart, Inc. |
| |||||||
3.30%, 4/22/2024 | 150,000 | 150,172 | ||||||
2,677,890 | ||||||||
Food Products – 1.1% | ||||||||
Campbell Soup Co. |
| |||||||
4.15%, 3/15/2028 | 200,000 | 194,898 | ||||||
Kraft Heinz Foods Co. |
| |||||||
3.50%, 7/15/2022 | 200,000 | 198,589 | ||||||
Tyson Foods, Inc. |
| |||||||
4.50%, 6/15/2022 | 124,000 | 128,408 | ||||||
3.55%, 6/2/2027 | 50,000 | 47,584 | ||||||
Unilever Capital Corp. |
| |||||||
2.90%, 5/5/2027 | 100,000 | 94,209 | ||||||
663,688 | ||||||||
Health Care Equipment & Supplies – 0.3% | ||||||||
Stryker Corp. |
| |||||||
3.65%, 3/7/2028 | 150,000 | 148,117 | ||||||
Health Care Providers & Services – 2.1% | ||||||||
Anthem, Inc. |
| |||||||
3.30%, 1/15/2023 | 100,000 | 98,473 | ||||||
3.35%, 12/1/2024 | 150,000 | 144,291 | ||||||
Coventry Health Care, Inc. |
| |||||||
5.45%, 6/15/2021 | 200,000 | 211,067 | ||||||
Express Scripts Holding Co. |
| |||||||
3.90%, 2/15/2022 | 150,000 | 150,727 | ||||||
3.50%, 6/15/2024 | 150,000 | 143,898 | ||||||
3.40%, 3/1/2027 | 100,000 | 92,190 | ||||||
Laboratory Corp. of America Holdings |
| |||||||
3.20%, 2/1/2022 | 100,000 | 98,736 | ||||||
UnitedHealth Group, Inc. |
| |||||||
2.70%, 7/15/2020 | 100,000 | 99,587 | ||||||
3.75%, 7/15/2025 | 75,000 | 75,058 | ||||||
3.10%, 3/15/2026 | 100,000 | 95,556 | ||||||
1,209,583 |
Investments | Principal Amount | Value | ||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||
Marriott International, Inc. |
| |||||||
2.30%, 1/15/2022 | $ | 80,000 | $ | 76,707 | ||||
McDonald’s Corp. |
| |||||||
2.75%, 12/9/2020 | 30,000 | 29,895 | ||||||
3.38%, 5/26/2025 | 125,000 | 122,715 | ||||||
Starbucks Corp. |
| |||||||
3.50%, 3/1/2028 | 100,000 | 98,851 | ||||||
328,168 | ||||||||
Household Products – 0.2% | ||||||||
Procter & Gamble Co. (The) |
| |||||||
3.10%, 8/15/2023 | 50,000 | 49,997 | ||||||
2.85%, 8/11/2027 | 100,000 | 94,499 | ||||||
144,496 | ||||||||
Industrial Conglomerates – 0.3% | ||||||||
3M Co. |
| |||||||
2.25%, 9/19/2026 | 100,000 | 90,356 | ||||||
Honeywell International, Inc. |
| |||||||
1.85%, 11/1/2021 | 80,000 | 76,959 | ||||||
167,315 | ||||||||
Insurance – 1.9% | ||||||||
American International Group, Inc. |
| |||||||
3.38%, 8/15/2020 | 190,000 | 190,326 | ||||||
3.30%, 3/1/2021 | 300,000 | 299,357 | ||||||
3.90%, 4/1/2026 | 100,000 | 97,939 | ||||||
Aon plc |
| |||||||
3.50%, 6/14/2024 | 100,000 | 98,147 | ||||||
Chubb INA Holdings, Inc. |
| |||||||
3.15%, 3/15/2025 | 170,000 | 164,876 | ||||||
Marsh & McLennan Cos., Inc. |
| |||||||
3.50%, 3/10/2025 | 75,000 | 73,326 | ||||||
MetLife, Inc. |
| |||||||
3.60%, 4/10/2024 | 80,000 | 80,098 | ||||||
Prudential Financial, Inc. |
| |||||||
3.50%, 5/15/2024 | 100,000 | 99,800 | ||||||
5.20%, 3/15/2044(a) | 10,000 | 10,063 | ||||||
1,113,932 | ||||||||
Internet & Direct Marketing Retail – 0.2% | ||||||||
Amazon.com, Inc. |
| |||||||
5.20%, 12/3/2025 | 100,000 | 110,799 |
See Accompanying Notes to the Financial Statements.
270 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Internet Software & Services – 1.4% | ||||||||
Alibaba Group Holding Ltd. |
| |||||||
3.13%, 11/28/2021 | $ | 400,000 | $ | 397,458 | ||||
Alphabet, Inc. |
| |||||||
3.38%, 2/25/2024 | 100,000 | 100,544 | ||||||
Baidu, Inc. |
| |||||||
3.00%, 6/30/2020 | 200,000 | 198,000 | ||||||
eBay, Inc. |
| |||||||
3.45%, 8/1/2024 | 120,000 | 117,140 | ||||||
813,142 | ||||||||
IT Services – 1.8% | ||||||||
Fidelity National Information Services, Inc. |
| |||||||
3.50%, 4/15/2023 | 100,000 | 99,264 | ||||||
3.00%, 8/15/2026 | 100,000 | 91,959 | ||||||
Fiserv, Inc. |
| |||||||
3.50%, 10/1/2022 | 105,000 | 104,997 | ||||||
International Business Machines Corp. |
| |||||||
3.38%, 8/1/2023 | 100,000 | 99,723 | ||||||
3.63%, 2/12/2024 | 100,000 | 100,298 | ||||||
3.45%, 2/19/2026 | 100,000 | 98,796 | ||||||
Visa, Inc. |
| |||||||
2.80%, 12/14/2022 | 350,000 | 344,221 | ||||||
2.75%, 9/15/2027 | 100,000 | 93,500 | ||||||
1,032,758 | ||||||||
Media – 2.8% | ||||||||
21st Century Fox America, Inc. |
| |||||||
3.70%, 10/15/2025 | 50,000 | 49,822 | ||||||
Comcast Corp. |
| |||||||
3.38%, 8/15/2025 | 400,000 | 388,801 | ||||||
Discovery Communications LLC |
| |||||||
5.05%, 6/1/2020 | 80,000 | 82,951 | ||||||
NBCUniversal Media LLC |
| |||||||
4.38%, 4/1/2021 | 350,000 | 362,266 | ||||||
Omnicom Group, Inc. |
| |||||||
4.45%, 8/15/2020 | 170,000 | 174,626 | ||||||
Time Warner, Inc. |
| |||||||
4.70%, 1/15/2021 | 80,000 | 82,872 | ||||||
4.05%, 12/15/2023 | 100,000 | 101,246 | ||||||
3.55%, 6/1/2024 | 80,000 | 78,294 | ||||||
3.88%, 1/15/2026 | 150,000 | 146,926 |
Investments | Principal Amount | Value | ||||||
Media – (continued) | ||||||||
Walt Disney Co. (The) |
| |||||||
3.00%, 2/13/2026 | $ | 60,000 | $ | 57,903 | ||||
2.95%, 6/15/2027 | 100,000 | 95,651 | ||||||
1,621,358 | ||||||||
Metals & Mining – 0.3% | ||||||||
Vale Overseas Ltd. |
| |||||||
4.38%, 1/11/2022 | 200,000 | 202,420 | ||||||
Multiline Retail – 0.1% | ||||||||
Target Corp. |
| |||||||
2.50%, 4/15/2026 | 40,000 | 36,589 | ||||||
Multi-Utilities – 0.6% | ||||||||
Dominion Energy, Inc. |
| |||||||
4.45%, 3/15/2021 | 150,000 | 154,011 | ||||||
DTE Energy Co. |
| |||||||
3.80%, 3/15/2027 | 100,000 | 97,564 | ||||||
Sempra Energy |
| |||||||
3.55%, 6/15/2024 | 80,000 | 78,852 | ||||||
330,427 | ||||||||
Oil, Gas & Consumable Fuels – 5.3% | ||||||||
BP Capital Markets plc |
| |||||||
4.50%, 10/1/2020 | 200,000 | 207,107 | ||||||
3.12%, 5/4/2026 | 300,000 | 287,335 | ||||||
3.28%, 9/19/2027 | 250,000 | 240,143 | ||||||
Chevron Corp. |
| |||||||
2.95%, 5/16/2026 | 150,000 | 143,593 | ||||||
ConocoPhillips Co. |
| |||||||
3.35%, 5/15/2025 | 150,000 | 146,994 | ||||||
4.95%, 3/15/2026 | 100,000 | 108,057 | ||||||
Enterprise Products Operating LLC |
| |||||||
5.20%, 9/1/2020 | 200,000 | 208,979 | ||||||
3.35%, 3/15/2023 | 180,000 | 177,909 | ||||||
3.75%, 2/15/2025 | 100,000 | 99,292 | ||||||
EOG Resources, Inc. |
| |||||||
4.15%, 1/15/2026 | 100,000 | 102,373 | ||||||
Exxon Mobil Corp. |
| |||||||
2.22%, 3/1/2021 | 100,000 | 98,428 | ||||||
2.73%, 3/1/2023 | 160,000 | 157,124 | ||||||
Kinder Morgan Energy Partners LP |
| |||||||
5.30%, 9/15/2020 | 100,000 | 104,020 | ||||||
MPLX LP |
| |||||||
4.88%, 6/1/2025 | 500,000 | 518,364 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 271 |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
Occidental Petroleum Corp. |
| |||||||
2.70%, 2/15/2023 | $ | 80,000 | $ | 77,836 | ||||
3.00%, 2/15/2027 | 100,000 | 94,914 | ||||||
ONEOK Partners LP |
| |||||||
4.90%, 3/15/2025 | 150,000 | 155,717 | ||||||
Total Capital International SA |
| |||||||
3.75%, 4/10/2024 | 80,000 | 81,190 | ||||||
Williams Partners LP |
| |||||||
4.13%, 11/15/2020 | 100,000 | 101,332 | ||||||
3,110,707 | ||||||||
Pharmaceuticals – 1.6% | ||||||||
AstraZeneca plc |
| |||||||
2.38%, 6/12/2022 | 150,000 | 143,918 | ||||||
3.13%, 6/12/2027 | 100,000 | 94,574 | ||||||
Merck & Co., Inc. |
| |||||||
2.75%, 2/10/2025 | 115,000 | 110,076 | ||||||
Novartis Capital Corp. |
| |||||||
3.40%, 5/6/2024 | 100,000 | 99,728 | ||||||
3.10%, 5/17/2027 | 100,000 | 95,960 | ||||||
Pfizer, Inc. |
| |||||||
1.95%, 6/3/2021 | 150,000 | 146,009 | ||||||
3.00%, 12/15/2026 | 100,000 | 95,887 | ||||||
Zoetis, Inc. |
| |||||||
3.25%, 2/1/2023 | 150,000 | 148,035 | ||||||
934,187 | ||||||||
Road & Rail – 0.3% | ||||||||
CSX Corp. |
| |||||||
2.60%, 11/1/2026 | 100,000 | 90,816 | ||||||
Union Pacific Corp. |
| |||||||
4.16%, 7/15/2022 | 100,000 | 103,488 | ||||||
194,304 | ||||||||
Semiconductors & Semiconductor Equipment – 1.4% | ||||||||
Analog Devices, Inc. |
| |||||||
3.90%, 12/15/2025 | 100,000 | 99,662 | ||||||
Applied Materials, Inc. |
| |||||||
3.30%, 4/1/2027 | 75,000 | 72,743 | ||||||
Intel Corp. |
| |||||||
2.45%, 7/29/2020 | 100,000 | 99,405 | ||||||
2.70%, 12/15/2022 | 200,000 | 196,097 |
Investments | Principal Amount | Value | ||||||
Semiconductors & Semiconductor Equipment – (continued) | ||||||||
QUALCOMM, Inc. |
| |||||||
3.00%, 5/20/2022 | $ | 200,000 | $ | 195,087 | ||||
3.25%, 5/20/2027 | 150,000 | 138,207 | ||||||
801,201 | ||||||||
Software – 2.1% | ||||||||
Microsoft Corp. |
| |||||||
3.00%, 10/1/2020 | 150,000 | 151,274 | ||||||
2.70%, 2/12/2025 | 140,000 | 134,211 | ||||||
3.13%, 11/3/2025 | 150,000 | 146,147 | ||||||
2.40%, 8/8/2026 | 100,000 | 92,149 | ||||||
Oracle Corp. |
| |||||||
1.90%, 9/15/2021 | 100,000 | 96,561 | ||||||
2.50%, 5/15/2022 | 250,000 | 244,159 | ||||||
2.65%, 7/15/2026 | 200,000 | 185,133 | ||||||
3.25%, 11/15/2027 | 200,000 | 192,520 | ||||||
1,242,154 | ||||||||
Specialty Retail – 1.0% | ||||||||
AutoZone, Inc. |
| |||||||
3.70%, 4/15/2022 | 145,000 | 146,151 | ||||||
Home Depot, Inc. (The) |
| |||||||
2.63%, 6/1/2022 | 200,000 | 195,987 | ||||||
3.00%, 4/1/2026 | 130,000 | 124,411 | ||||||
Lowe’s Cos., Inc. |
| |||||||
3.38%, 9/15/2025 | 100,000 | 98,451 | ||||||
565,000 | ||||||||
Technology Hardware, Storage & Peripherals – 2.7% | ||||||||
Apple, Inc. |
| |||||||
2.50%, 2/9/2022 | 150,000 | 147,100 | ||||||
2.40%, 5/3/2023 | 230,000 | 221,149 | ||||||
3.45%, 5/6/2024 | 450,000 | 449,946 | ||||||
3.25%, 2/23/2026 | 150,000 | 146,433 | ||||||
2.45%, 8/4/2026 | 300,000 | 275,792 | ||||||
3.35%, 2/9/2027 | 150,000 | 146,963 | ||||||
3.20%, 5/11/2027 | 100,000 | 96,648 | ||||||
HP, Inc. |
| |||||||
4.05%, 9/15/2022 | 125,000 | 127,346 | ||||||
1,611,377 | ||||||||
Tobacco – 1.5% | ||||||||
Altria Group, Inc. |
| |||||||
2.85%, 8/9/2022 | 160,000 | 155,998 | ||||||
4.00%, 1/31/2024 | 100,000 | 101,321 |
See Accompanying Notes to the Financial Statements.
272 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Tobacco – (continued) | ||||||||
2.63%, 9/16/2026 | $ | 160,000 | $ | 145,108 | ||||
Philip Morris International, Inc. |
| |||||||
2.50%, 11/2/2022 | 200,000 | 191,853 | ||||||
2.75%, 2/25/2026 | 100,000 | 92,872 | ||||||
Reynolds American, Inc. |
| |||||||
3.25%, 6/12/2020 | 54,000 | 54,059 | ||||||
4.00%, 6/12/2022 | 150,000 | 151,432 | ||||||
892,643 | ||||||||
Trading Companies & Distributors – 0.4% | ||||||||
Air Lease Corp. |
| |||||||
3.38%, 6/1/2021 | 105,000 | 104,652 | ||||||
3.00%, 9/15/2023 | 155,000 | 148,044 | ||||||
252,696 | ||||||||
Total Corporate Bonds (Cost $59,689,043) | 58,130,412 | |||||||
Total Investments – 98.8% (Cost $59,689,043) | 58,130,412 | |||||||
Other Assets Less Liabilities – 1.2% |
| 725,118 | ||||||
NET ASSETS – 100.0% | $ | 58,855,530 |
(a) | Security issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
Percentages shown are based on Net Assets.
As of April 30, 2018, 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 | $ | 1,646 | ||
Aggregate gross unrealized depreciation | (1,563,450 | ) | ||
Net unrealized depreciation | $ | (1,561,804 | ) | |
Federal income tax cost | $ | 59,692,216 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 273 |
Table of Contents
Schedule of Investments
FlexShares® Credit-Scored US Long Corporate Bond Index Fund
April 30, 2018 (Unaudited)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – 97.9% | ||||||||
Aerospace & Defense – 3.5% | ||||||||
Harris Corp. |
| |||||||
5.05%, 4/27/2045 | $ | 25,000 | $ | 27,163 | ||||
Lockheed Martin Corp. |
| |||||||
3.60%, 3/1/2035 | 120,000 | 112,519 | ||||||
3.80%, 3/1/2045 | 40,000 | 37,004 | ||||||
4.70%, 5/15/2046 | 150,000 | 160,681 | ||||||
Northrop Grumman Corp. |
| |||||||
4.75%, 6/1/2043 | 125,000 | 132,197 | ||||||
3.85%, 4/15/2045 | 55,000 | 50,639 | ||||||
Raytheon Co. |
| |||||||
4.88%, 10/15/2040 | 20,000 | 22,768 | ||||||
Rockwell Collins, Inc. |
| |||||||
4.35%, 4/15/2047 | 35,000 | 33,821 | ||||||
United Technologies Corp. |
| |||||||
5.70%, 4/15/2040 | 15,000 | 17,103 | ||||||
4.50%, 6/1/2042 | 205,000 | 202,781 | ||||||
4.15%, 5/15/2045 | 80,000 | 75,376 | ||||||
4.05%, 5/4/2047 | 115,000 | 106,303 | ||||||
978,355 | ||||||||
Air Freight & Logistics – 1.2% | ||||||||
FedEx Corp. |
| |||||||
3.90%, 2/1/2035 | 160,000 | 152,638 | ||||||
5.10%, 1/15/2044 | 65,000 | 70,115 | ||||||
4.75%, 11/15/2045 | 70,000 | 71,095 | ||||||
United Parcel Service, Inc. |
| |||||||
6.20%, 1/15/2038 | 25,000 | 31,789 | ||||||
325,637 | ||||||||
Automobiles – 1.3% | ||||||||
Daimler Finance North America LLC |
| |||||||
8.50%, 1/18/2031 | 25,000 | 35,722 | ||||||
General Motors Co. |
| |||||||
5.00%, 4/1/2035 | 330,000 | 321,336 | ||||||
357,058 | ||||||||
Banks – 11.6% | ||||||||
Bank of America Corp. |
| |||||||
4.24%, 4/24/2038(a) | 300,000 | 293,959 | ||||||
5.00%, 1/21/2044 | 95,000 | 102,940 | ||||||
Series L, 4.75%, 4/21/2045 | 140,000 | 143,151 | ||||||
4.44%, 1/20/2048(a) | 105,000 | 105,479 |
Investments | Principal Amount | Value | ||||||
Banks – (continued) | ||||||||
Barclays plc |
| |||||||
4.84%, 5/9/2028 | $ | 200,000 | $ | 194,557 | ||||
Citigroup, Inc. |
| |||||||
6.63%, 6/15/2032 | 250,000 | 298,708 | ||||||
8.13%, 7/15/2039 | 27,000 | 39,222 | ||||||
5.88%, 1/30/2042 | 40,000 | 47,561 | ||||||
5.30%, 5/6/2044 | 145,000 | 154,997 | ||||||
4.65%, 7/30/2045 | 105,000 | 108,297 | ||||||
4.75%, 5/18/2046 | 40,000 | 39,138 | ||||||
4.28%, 4/24/2048(a) | 70,000 | 68,541 | ||||||
Fifth Third Bancorp |
| |||||||
8.25%, 3/1/2038 | 30,000 | 41,772 | ||||||
HSBC Holdings plc |
| |||||||
6.10%, 1/14/2042 | 125,000 | 160,366 | ||||||
JPMorgan Chase & Co. |
| |||||||
6.40%, 5/15/2038 | 205,000 | 258,180 | ||||||
4.95%, 6/1/2045 | 265,000 | 277,056 | ||||||
4.26%, 2/22/2048(a) | 150,000 | 144,821 | ||||||
3.96%, 11/15/2048(a) | 150,000 | 137,452 | ||||||
3.90%, 1/23/2049(a) | 320,000 | 289,407 | ||||||
Wells Fargo & Co. |
| |||||||
5.38%, 11/2/2043 | 175,000 | 188,293 | ||||||
5.61%, 1/15/2044 | 135,000 | 149,774 | ||||||
3,243,671 | ||||||||
Beverages – 1.1% | ||||||||
Anheuser-Busch InBev Worldwide, Inc. |
| |||||||
4.38%, 4/15/2038 | 75,000 | 74,360 | ||||||
Constellation Brands, Inc. |
| |||||||
4.50%, 5/9/2047 | 50,000 | 49,033 | ||||||
Diageo Capital plc |
| |||||||
5.88%, 9/30/2036 | 50,000 | 61,560 | ||||||
PepsiCo, Inc. |
| |||||||
4.45%, 4/14/2046 | 75,000 | 78,525 | ||||||
3.45%, 10/6/2046 | 55,000 | 49,438 | ||||||
312,916 | ||||||||
Biotechnology – 4.3% | ||||||||
AbbVie, Inc. |
| |||||||
4.50%, 5/14/2035 | 200,000 | 199,999 | ||||||
4.40%, 11/6/2042 | 170,000 | 162,119 | ||||||
4.70%, 5/14/2045 | 75,000 | 74,767 |
See Accompanying Notes to the Financial Statements.
274 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Biotechnology – (continued) | ||||||||
Amgen, Inc. |
| |||||||
6.38%, 6/1/2037 | $ | 20,000 | $ | 24,438 | ||||
5.15%, 11/15/2041 | 65,000 | 70,896 | ||||||
Biogen, Inc. |
| |||||||
5.20%, 9/15/2045 | 95,000 | 100,083 | ||||||
Celgene Corp. |
| |||||||
4.63%, 5/15/2044 | 100,000 | 97,181 | ||||||
5.00%, 8/15/2045 | 90,000 | 90,699 | ||||||
Gilead Sciences, Inc. |
| |||||||
4.60%, 9/1/2035 | 100,000 | 104,412 | ||||||
4.75%, 3/1/2046 | 150,000 | 155,577 | ||||||
4.15%, 3/1/2047 | 110,000 | 105,021 | ||||||
1,185,192 | ||||||||
Building Products – 0.1% | ||||||||
Owens Corning |
| |||||||
4.30%, 7/15/2047 | 35,000 | 30,854 | ||||||
Capital Markets – 4.1% | ||||||||
CME Group, Inc. |
| |||||||
5.30%, 9/15/2043 | 30,000 | 36,243 | ||||||
Goldman Sachs Group, Inc. (The) |
| |||||||
6.13%, 2/15/2033 | 265,000 | 309,855 | ||||||
6.75%, 10/1/2037 | 195,000 | 237,023 | ||||||
6.25%, 2/1/2041 | 220,000 | 265,988 | ||||||
4.75%, 10/21/2045 | 115,000 | 117,262 | ||||||
Morgan Stanley |
| |||||||
6.38%, 7/24/2042 | 90,000 | 113,672 | ||||||
4.30%, 1/27/2045 | 70,000 | 67,911 | ||||||
1,147,954 | ||||||||
Chemicals – 1.5% | ||||||||
Dow Chemical Co. (The) |
| |||||||
7.38%, 11/1/2029 | 30,000 | 38,363 | ||||||
Eastman Chemical Co. |
| |||||||
4.80%, 9/1/2042 | 50,000 | 52,295 | ||||||
International Flavors & Fragrances, Inc. |
| |||||||
4.38%, 6/1/2047 | 50,000 | 49,147 | ||||||
LYB International Finance BV |
| |||||||
4.88%, 3/15/2044 | 155,000 | 160,150 | ||||||
Monsanto Co. |
| |||||||
4.20%, 7/15/2034 | 30,000 | 29,402 | ||||||
4.40%, 7/15/2044 | 55,000 | 52,032 |
Investments | Principal Amount | Value | ||||||
Chemicals – (continued) | ||||||||
Praxair, Inc. |
| |||||||
3.55%, 11/7/2042 | $ | 10,000 | $ | 9,402 | ||||
Sherwin-Williams Co. (The) |
| |||||||
4.50%, 6/1/2047 | 40,000 | 39,347 | ||||||
430,138 | ||||||||
Communications Equipment – 0.5% | ||||||||
Cisco Systems, Inc. |
| |||||||
5.90%, 2/15/2039 | 100,000 | 126,936 | ||||||
Consumer Finance – 0.1% | ||||||||
American Express Co. |
| |||||||
4.05%, 12/3/2042 | 30,000 | 29,381 | ||||||
Diversified Financial Services – 1.1% | ||||||||
Shell International Finance BV |
| |||||||
4.13%, 5/11/2035 | 140,000 | 143,159 | ||||||
4.38%, 5/11/2045 | 155,000 | 161,417 | ||||||
304,576 | ||||||||
Diversified Telecommunication Services – 7.7% | ||||||||
AT&T, Inc. |
| |||||||
4.90%, 8/14/2037 | 300,000 | 304,144 | ||||||
British Telecommunications plc |
| |||||||
9.12%, 12/15/2030 | 95,000 | 136,866 | ||||||
Deutsche Telekom International Finance BV |
| |||||||
8.75%, 6/15/2030 | 230,000 | 318,460 | ||||||
Orange SA |
| |||||||
9.00%, 3/1/2031(b) | 90,000 | 128,892 | ||||||
Telefonica Emisiones SAU |
| |||||||
5.21%, 3/8/2047 | 170,000 | 177,849 | ||||||
Verizon Communications, Inc. |
| |||||||
4.40%, 11/1/2034 | 140,000 | 135,900 | ||||||
4.27%, 1/15/2036 | 225,000 | 211,627 | ||||||
5.25%, 3/16/2037 | 95,000 | 99,508 | ||||||
4.75%, 11/1/2041 | 230,000 | 225,472 | ||||||
4.86%, 8/21/2046 | 135,000 | 132,635 | ||||||
5.50%, 3/16/2047 | 270,000 | 288,902 | ||||||
2,160,255 | ||||||||
Electric Utilities – 2.9% | ||||||||
Appalachian Power Co. |
| |||||||
7.00%, 4/1/2038 | 35,000 | 47,262 | ||||||
Commonwealth Edison Co. |
| |||||||
5.90%, 3/15/2036 | 125,000 | 154,024 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 275 |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Electric Utilities – (continued) | ||||||||
Duke Energy Corp. |
| |||||||
4.80%, 12/15/2045 | $ | 65,000 | $ | 69,738 | ||||
3.75%, 9/1/2046 | 180,000 | 162,160 | ||||||
Exelon Corp. |
| |||||||
5.10%, 6/15/2045 | 50,000 | 54,988 | ||||||
FirstEnergy Corp. |
| |||||||
Series C, 7.38%, 11/15/2031 | 60,000 | 78,847 | ||||||
Florida Power & Light Co. |
| |||||||
4.13%, 2/1/2042 | 85,000 | 87,011 | ||||||
Pacific Gas & Electric Co. |
| |||||||
4.00%, 12/1/2046 | 120,000 | 110,173 | ||||||
PPL Capital Funding, Inc. |
| |||||||
4.00%, 9/15/2047 | 35,000 | 32,890 | ||||||
797,093 | ||||||||
Electrical Equipment – 0.1% | ||||||||
Eaton Corp. |
| |||||||
4.15%, 11/2/2042 | 35,000 | 33,993 | ||||||
Electronic Equipment, Instruments & Components – 0.2% | ||||||||
Corning, Inc. |
| |||||||
4.75%, 3/15/2042 | 50,000 | 52,038 | ||||||
Energy Equipment & Services – 1.2% | ||||||||
Baker Hughes a GE Co. LLC |
| |||||||
5.13%, 9/15/2040 | 55,000 | 58,984 | ||||||
Halliburton Co. |
| |||||||
4.85%, 11/15/2035 | 260,000 | 276,552 | ||||||
335,536 | ||||||||
Equity Real Estate Investment Trusts (REITs) – 0.7% | ||||||||
ERP Operating LP |
| |||||||
4.50%, 7/1/2044 | 25,000 | 25,410 | ||||||
Federal Realty Investment Trust |
| |||||||
4.50%, 12/1/2044 | 30,000 | 30,449 | ||||||
Simon Property Group LP |
| |||||||
4.75%, 3/15/2042 | 85,000 | 87,858 | ||||||
Weyerhaeuser Co. |
| |||||||
7.38%, 3/15/2032 | 40,000 | 52,195 | ||||||
195,912 |
Investments | Principal Amount | Value | ||||||
Food & Staples Retailing – 3.9% | ||||||||
CVS Health Corp. |
| |||||||
4.78%, 3/25/2038 | $ | 200,000 | $ | 198,403 | ||||
5.30%, 12/5/2043 | 45,000 | 47,792 | ||||||
5.13%, 7/20/2045 | 110,000 | 114,675 | ||||||
5.05%, 3/25/2048 | 375,000 | 382,427 | ||||||
Sysco Corp. |
| |||||||
4.85%, 10/1/2045 | 40,000 | 41,469 | ||||||
Walgreen Co. |
| |||||||
4.40%, 9/15/2042 | 105,000 | 96,676 | ||||||
Walmart, Inc. |
| |||||||
5.25%, 9/1/2035 | 55,000 | 65,074 | ||||||
6.50%, 8/15/2037 | 100,000 | 135,177 | ||||||
1,081,693 | ||||||||
Food Products – 0.9% | ||||||||
Archer-Daniels-Midland Co. |
| |||||||
4.54%, 3/26/2042 | 50,000 | 51,598 | ||||||
Campbell Soup Co. |
| |||||||
4.80%, 3/15/2048 | 50,000 | 48,281 | ||||||
General Mills, Inc. |
| |||||||
4.15%, 2/15/2043 | 50,000 | 46,194 | ||||||
Kellogg Co. |
| |||||||
4.50%, 4/1/2046 | 30,000 | 29,331 | ||||||
Mead Johnson Nutrition Co. |
| |||||||
4.60%, 6/1/2044 | 35,000 | 36,214 | ||||||
Unilever Capital Corp. |
| |||||||
5.90%, 11/15/2032 | 25,000 | 30,884 | ||||||
242,502 | ||||||||
Gas Utilities – 0.2% | ||||||||
Dominion Energy Gas Holdings LLC |
| |||||||
4.60%, 12/15/2044 | 50,000 | 51,236 | ||||||
Health Care Equipment & Supplies – 1.0% | ||||||||
Koninklijke Philips NV |
| |||||||
5.00%, 3/15/2042 | 40,000 | 44,301 | ||||||
Medtronic, Inc. |
| |||||||
4.38%, 3/15/2035 | 145,000 | 150,584 | ||||||
4.63%, 3/15/2045 | 50,000 | 52,968 | ||||||
Stryker Corp. |
| |||||||
4.63%, 3/15/2046 | 40,000 | 41,854 | ||||||
289,707 |
See Accompanying Notes to the Financial Statements.
276 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Health Care Providers & Services – 2.4% | ||||||||
Aetna, Inc. |
| |||||||
6.63%, 6/15/2036 | $ | 100,000 | $ | 127,108 | ||||
6.75%, 12/15/2037 | 35,000 | 45,327 | ||||||
Express Scripts Holding Co. |
| |||||||
4.80%, 7/15/2046 | 60,000 | 58,971 | ||||||
Humana, Inc. |
| |||||||
4.95%, 10/1/2044 | 15,000 | 15,931 | ||||||
UnitedHealth Group, Inc. |
| |||||||
4.63%, 7/15/2035 | 220,000 | 235,573 | ||||||
5.80%, 3/15/2036 | 150,000 | 180,627 | ||||||
663,537 | ||||||||
Hotels, Restaurants & Leisure – 1.0% | ||||||||
McDonald’s Corp. |
| |||||||
6.30%, 3/1/2038 | 110,000 | 138,779 | ||||||
4.60%, 5/26/2045 | 75,000 | 76,833 | ||||||
4.88%, 12/9/2045 | 70,000 | 74,401 | ||||||
290,013 | ||||||||
Household Products – 0.4% | ||||||||
Kimberly-Clark Corp. |
| |||||||
6.63%, 8/1/2037 | 50,000 | 67,394 | ||||||
Procter & Gamble Co. (The) |
| |||||||
5.55%, 3/5/2037 | 30,000 | 37,323 | ||||||
104,717 | ||||||||
Industrial Conglomerates – 0.3% | ||||||||
3M Co. |
| |||||||
3.63%, 10/15/2047 | 50,000 | 47,521 | ||||||
Honeywell International, Inc. |
| |||||||
3.81%, 11/21/2047 | 5,000 | 4,823 | ||||||
Ingersoll-Rand Global Holding Co. Ltd. |
| |||||||
5.75%, 6/15/2043 | 25,000 | 29,330 | ||||||
81,674 | ||||||||
Insurance – 2.9% | ||||||||
Allstate Corp. (The) |
| |||||||
5.55%, 5/9/2035 | 75,000 | 88,608 | ||||||
6.50%, 5/15/2057(a) | 15,000 | 16,988 | ||||||
American International Group, Inc. |
| |||||||
3.88%, 1/15/2035 | 130,000 | 119,795 | ||||||
4.50%, 7/16/2044 | 40,000 | 38,578 |
Investments | Principal Amount | Value | ||||||
Insurance – (continued) | ||||||||
Aon plc |
| |||||||
4.75%, 5/15/2045 | $ | 65,000 | $ | 66,158 | ||||
Chubb Corp. (The) |
| |||||||
6.00%, 5/11/2037 | 65,000 | 81,377 | ||||||
Manulife Financial Corp. |
| |||||||
5.38%, 3/4/2046 | 35,000 | 40,070 | ||||||
Marsh & McLennan Cos., Inc. |
| |||||||
4.35%, 1/30/2047 | 75,000 | 75,420 | ||||||
MetLife, Inc. |
| |||||||
6.40%, 12/15/2036 | 70,000 | 76,475 | ||||||
4.60%, 5/13/2046 | 55,000 | 56,475 | ||||||
Principal Financial Group, Inc. |
| |||||||
6.05%, 10/15/2036 | 30,000 | 35,987 | ||||||
Progressive Corp. (The) |
| |||||||
4.13%, 4/15/2047 | 50,000 | 49,570 | ||||||
Travelers Cos., Inc. (The) |
| |||||||
3.75%, 5/15/2046 | 60,000 | 56,453 | ||||||
801,954 | ||||||||
Internet & Direct Marketing Retail – 0.4% | ||||||||
Amazon.com, Inc. |
| |||||||
4.80%, 12/5/2034 | 100,000 | 110,590 | ||||||
Internet Software & Services – 1.1% | ||||||||
Alibaba Group Holding Ltd. |
| |||||||
4.00%, 12/6/2037 | 275,000 | 259,522 | ||||||
eBay, Inc. |
| |||||||
4.00%, 7/15/2042 | 40,000 | 35,017 | ||||||
294,539 | ||||||||
IT Services – 0.5% | ||||||||
International Business Machines Corp. |
| |||||||
5.88%, 11/29/2032 | 50,000 | 61,095 | ||||||
Visa, Inc. |
| |||||||
4.30%, 12/14/2045 | 80,000 | 83,374 | ||||||
144,469 | ||||||||
Machinery – 0.4% | ||||||||
Cummins, Inc. |
| |||||||
4.88%, 10/1/2043 | 50,000 | 54,477 | ||||||
Fortive Corp. |
| |||||||
4.30%, 6/15/2046 | 30,000 | 29,412 | ||||||
Illinois Tool Works, Inc. |
| |||||||
3.90%, 9/1/2042 | 30,000 | 30,051 | ||||||
113,940 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 277 |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Media – 6.9% | ||||||||
21st Century Fox America, Inc. |
| |||||||
6.20%, 12/15/2034 | $ | 75,000 | $ | 91,951 | ||||
6.65%, 11/15/2037 | 130,000 | 166,019 | ||||||
4.75%, 9/15/2044 | 175,000 | 186,290 | ||||||
Comcast Corp. |
| |||||||
6.50%, 11/15/2035 | 355,000 | 443,317 | ||||||
4.60%, 8/15/2045 | 170,000 | 171,683 | ||||||
3.40%, 7/15/2046 | 165,000 | 137,443 | ||||||
3.97%, 11/1/2047 | 125,000 | 114,757 | ||||||
4.00%, 11/1/2049 | 200,000 | 184,380 | ||||||
Time Warner, Inc. |
| |||||||
6.25%, 3/29/2041 | 200,000 | 234,944 | ||||||
Viacom, Inc. |
| |||||||
4.38%, 3/15/2043 | 150,000 | 133,470 | ||||||
Walt Disney Co. (The) |
| |||||||
4.13%, 6/1/2044 | 55,000 | 55,674 | ||||||
1,919,928 | ||||||||
Metals & Mining – 1.5% | ||||||||
Barrick North America Finance LLC |
| |||||||
5.70%, 5/30/2041 | 150,000 | 169,668 | ||||||
BHP Billiton Finance USA Ltd. |
| |||||||
5.00%, 9/30/2043 | 50,000 | 56,443 | ||||||
Newmont Mining Corp. |
| |||||||
5.88%, 4/1/2035 | 55,000 | 63,652 | ||||||
4.88%, 3/15/2042 | 50,000 | 51,886 | ||||||
Rio Tinto Finance USA Ltd. |
| |||||||
5.20%, 11/2/2040 | 75,000 | 86,763 | ||||||
428,412 | ||||||||
Multiline Retail – 0.4% | ||||||||
Target Corp. |
| |||||||
4.00%, 7/1/2042 | 110,000 | 105,825 | ||||||
Multi-Utilities – 2.2% | ||||||||
Berkshire Hathaway Energy Co. |
| |||||||
5.15%, 11/15/2043 | 55,000 | 62,835 | ||||||
4.50%, 2/1/2045 | 110,000 | 114,195 | ||||||
Consolidated Edison Co. of New York, Inc. |
| |||||||
4.63%, 12/1/2054 | 31,000 | 33,123 | ||||||
Series C, 4.30%, 12/1/2056 | 90,000 | 90,894 | ||||||
Dominion Energy, Inc. |
| |||||||
Series B, 5.95%, 6/15/2035 | 130,000 | 153,108 |
Investments | Principal Amount | Value | ||||||
Multi-Utilities – (continued) | ||||||||
NiSource, Inc. |
| |||||||
4.38%, 5/15/2047 | $ | 55,000 | $ | 54,518 | ||||
Sempra Energy |
| |||||||
3.80%, 2/1/2038 | 75,000 | 69,644 | ||||||
6.00%, 10/15/2039 | 30,000 | 36,139 | ||||||
Southern Co. Gas Capital Corp. |
| |||||||
5.88%, 3/15/2041 | 5,000 | 5,888 | ||||||
620,344 | ||||||||
Oil, Gas & Consumable Fuels – 8.9% | ||||||||
Apache Corp. |
| |||||||
6.00%, 1/15/2037 | 125,000 | 140,673 | ||||||
Concho Resources, Inc. |
| |||||||
4.88%, 10/1/2047 | 50,000 | 51,035 | ||||||
ConocoPhillips |
| |||||||
5.90%, 10/15/2032 | 190,000 | 224,716 | ||||||
6.50%, 2/1/2039 | 100,000 | 131,096 | ||||||
Enterprise Products Operating LLC |
| |||||||
6.45%, 9/1/2040 | 190,000 | 233,566 | ||||||
4.85%, 3/15/2044 | 50,000 | 51,785 | ||||||
5.10%, 2/15/2045 | 85,000 | 90,461 | ||||||
Exxon Mobil Corp. |
| |||||||
4.11%, 3/1/2046 | 75,000 | 76,946 | ||||||
Magellan Midstream Partners LP |
| |||||||
5.15%, 10/15/2043 | 20,000 | 21,539 | ||||||
4.20%, 10/3/2047 | 30,000 | 28,236 | ||||||
Marathon Petroleum Corp. |
| |||||||
4.75%, 9/15/2044 | 100,000 | 99,066 | ||||||
MPLX LP |
| |||||||
4.70%, 4/15/2048 | 175,000 | 166,269 | ||||||
Occidental Petroleum Corp. |
| |||||||
4.63%, 6/15/2045 | 105,000 | 110,846 | ||||||
ONEOK Partners LP |
| |||||||
6.13%, 2/1/2041 | 60,000 | 68,378 | ||||||
ONEOK, Inc. |
| |||||||
4.95%, 7/13/2047 | 50,000 | 50,314 | ||||||
Petro-Canada |
| |||||||
5.95%, 5/15/2035 | 120,000 | 142,730 | ||||||
Phillips 66 |
| |||||||
5.88%, 5/1/2042 | 155,000 | 183,392 | ||||||
4.88%, 11/15/2044 | 85,000 | 89,107 | ||||||
Phillips 66 Partners LP |
| |||||||
4.90%, 10/1/2046 | 30,000 | 29,590 | ||||||
Suncor Energy, Inc. |
| |||||||
4.00%, 11/15/2047 | 85,000 | 81,532 |
See Accompanying Notes to the Financial Statements.
278 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||
TransCanada PipeLines Ltd. |
| |||||||
5.85%, 3/15/2036 | $ | 150,000 | $ | 175,027 | ||||
5.00%, 10/16/2043 | 50,000 | 53,167 | ||||||
Valero Energy Corp. |
| |||||||
6.63%, 6/15/2037 | 105,000 | 131,502 | ||||||
Western Gas Partners LP |
| |||||||
5.45%, 4/1/2044 | 50,000 | 49,705 | ||||||
2,480,678 | ||||||||
Pharmaceuticals – 4.1% | ||||||||
AstraZeneca plc |
| |||||||
6.45%, 9/15/2037 | 50,000 | 63,736 | ||||||
4.38%, 11/16/2045 | 135,000 | 135,522 | ||||||
Eli Lilly & Co. |
| |||||||
3.70%, 3/1/2045 | 30,000 | 28,847 | ||||||
GlaxoSmithKline Capital, Inc. |
| |||||||
5.38%, 4/15/2034 | 35,000 | 39,831 | ||||||
6.38%, 5/15/2038 | 50,000 | 65,086 | ||||||
Johnson & Johnson |
| |||||||
4.38%, 12/5/2033 | 85,000 | 91,046 | ||||||
3.63%, 3/3/2037 | 100,000 | 97,784 | ||||||
3.70%, 3/1/2046 | 40,000 | 38,763 | ||||||
Merck & Co., Inc. |
| |||||||
3.70%, 2/10/2045 | 55,000 | 52,451 | ||||||
Novartis Capital Corp. |
| |||||||
3.70%, 9/21/2042 | 40,000 | 38,989 | ||||||
Wyeth LLC |
| |||||||
6.50%, 2/1/2034 | 190,000 | 243,228 | ||||||
5.95%, 4/1/2037 | 130,000 | 160,792 | ||||||
Zoetis, Inc. |
| |||||||
4.70%, 2/1/2043 | 90,000 | 94,106 | ||||||
1,150,181 | ||||||||
Road & Rail – 2.1% | ||||||||
Burlington Northern Santa Fe LLC |
| |||||||
4.55%, 9/1/2044 | 50,000 | 52,460 | ||||||
Canadian National Railway Co. |
| |||||||
3.20%, 8/2/2046 | 50,000 | 43,570 | ||||||
Canadian Pacific Railway Co. |
| |||||||
4.80%, 8/1/2045 | 85,000 | 93,694 | ||||||
CSX Corp. |
| |||||||
6.15%, 5/1/2037 | 110,000 | 134,417 | ||||||
4.10%, 3/15/2044 | 115,000 | 109,483 |
Investments | Principal Amount | Value | ||||||
Road & Rail – (continued) | ||||||||
Norfolk Southern Corp. |
| |||||||
4.84%, 10/1/2041 | $ | 90,000 | $ | 96,849 | ||||
Union Pacific Corp. |
| |||||||
4.05%, 3/1/2046 | 60,000 | 59,204 | ||||||
589,677 | ||||||||
Semiconductors & Semiconductor Equipment – 0.9% | ||||||||
Applied Materials, Inc. |
| |||||||
5.85%, 6/15/2041 | 25,000 | 30,754 | ||||||
4.35%, 4/1/2047 | 80,000 | 82,729 | ||||||
QUALCOMM, Inc. |
| |||||||
4.65%, 5/20/2035 | 55,000 | 54,662 | ||||||
4.80%, 5/20/2045 | 45,000 | 44,120 | ||||||
4.30%, 5/20/2047 | 55,000 | 50,156 | ||||||
262,421 | ||||||||
Software – 5.4% | ||||||||
Microsoft Corp. |
| |||||||
3.50%, 2/12/2035 | 385,000 | 375,085 | ||||||
4.00%, 2/12/2055 | 165,000 | 163,894 | ||||||
3.95%, 8/8/2056 | 205,000 | 201,098 | ||||||
4.50%, 2/6/2057 | 55,000 | 58,990 | ||||||
Oracle Corp. |
| |||||||
5.38%, 7/15/2040 | 415,000 | 483,652 | ||||||
4.00%, 7/15/2046 | 160,000 | 155,129 | ||||||
4.38%, 5/15/2055 | 70,000 | 70,928 | ||||||
1,508,776 | ||||||||
Specialty Retail – 1.6% | ||||||||
Home Depot, Inc. (The) |
| |||||||
5.88%, 12/16/2036 | 195,000 | 244,714 | ||||||
3.50%, 9/15/2056 | 55,000 | 48,168 | ||||||
Lowe’s Cos., Inc. |
| |||||||
4.05%, 5/3/2047 | 145,000 | 139,732 | ||||||
432,614 | ||||||||
Technology Hardware, Storage & Peripherals – 2.3% | ||||||||
Apple, Inc. |
| |||||||
4.50%, 2/23/2036 | 95,000 | 101,910 | ||||||
4.38%, 5/13/2045 | 125,000 | 129,736 | ||||||
4.65%, 2/23/2046 | 345,000 | 370,041 | ||||||
HP, Inc. |
| |||||||
6.00%, 9/15/2041 | 40,000 | 42,206 | ||||||
643,893 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 279 |
Table of Contents
FlexShares® Credit-Scored US Long Corporate Bond Index Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Textiles, Apparel & Luxury Goods – 0.2% | ||||||||
NIKE, Inc. |
| |||||||
3.63%, 5/1/2043 | $ | 50,000 | $ | 46,877 | ||||
Tobacco – 2.2% | ||||||||
Altria Group, Inc. |
| |||||||
4.25%, 8/9/2042 | 105,000 | 98,744 | ||||||
5.38%, 1/31/2044 | 95,000 | 104,095 | ||||||
Philip Morris International, Inc. |
| |||||||
6.38%, 5/16/2038 | 180,000 | 227,020 | ||||||
4.13%, 3/4/2043 | 95,000 | 90,365 | ||||||
Reynolds American, Inc. |
| |||||||
5.70%, 8/15/2035 | 90,000 | 99,618 | ||||||
619,842 | ||||||||
Trading Companies & Distributors – 0.2% | ||||||||
WW Grainger, Inc. |
| |||||||
4.60%, 6/15/2045 | 55,000 | 56,980 | ||||||
Wireless Telecommunication Services – 0.4% | ||||||||
Rogers Communications, Inc. |
| |||||||
5.00%, 3/15/2044 | 65,000 | 69,041 | ||||||
Vodafone Group plc |
| |||||||
7.88%, 2/15/2030 | 30,000 | 38,371 | ||||||
107,412 | ||||||||
Total Corporate Bonds (Cost $28,122,183) | 27,291,926 | |||||||
Total Investments – 97.9% (Cost $28,122,183) | 27,291,926 | |||||||
Other Assets Less Liabilities – 2.1% |
| 579,975 | ||||||
NET ASSETS – 100.0% | $ | 27,871,901 |
(a) | Security issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
(b) | Step bond. Interest rate is a fixed rate for an initial period that either resets at a specific date or may reset in the future at a contingent upon predetermined trigger. The interest rate shown was the current rate as of April 30, 2018. |
Percentages shown are based on Net Assets.
As of April 30, 2018, 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 | $ | 45,249 | ||
Aggregate gross unrealized depreciation | (890,092 | ) | ||
Net unrealized depreciation | $ | (844,843 | ) | |
Federal income tax cost | $ | 28,136,769 |
See Accompanying Notes to the Financial Statements.
280 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Schedule of Investments
FlexShares® Ready Access Variable Income Fund
April 30, 2018 (Unaudited)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – 89.5% | ||||||||
Aerospace & Defense – 0.5% | ||||||||
United Technologies Corp. | $ | 690,000 | $ | 693,355 | ||||
Air Freight & Logistics – 2.4% | ||||||||
FedEx Corp. | 500,000 | 518,234 | ||||||
2.30%, 2/1/2020 | 1,300,000 | 1,286,238 | ||||||
United Parcel Service, Inc. | 1,375,000 | 1,383,913 | ||||||
3,188,385 | ||||||||
Automobiles – 1.7% | ||||||||
Daimler Finance North America LLC (ICE LIBOR USD 3 Month + 0.39%), | 1,500,000 | 1,501,470 | ||||||
(ICE LIBOR USD | 690,000 | 693,821 | ||||||
Ford Motor Co. | 155,000 | 156,421 | ||||||
2,351,712 | ||||||||
Banks – 21.9% | ||||||||
Australia & New Zealand Banking Group Ltd. | 1,000,000 | 1,000,325 | ||||||
Bank of America Corp. | 2,590,000 | 2,580,666 | ||||||
Bank of Nova Scotia (The) | 1,000,000 | 998,388 |
Investments | Principal Amount | Value | ||||||
Banks – (continued) | ||||||||
Barclays Bank plc | $ | 550,000 | $ | 553,875 | ||||
BB&T Corp. | 200,000 | 199,935 | ||||||
BNP Paribas | 480,000 | 480,327 | ||||||
2.40%, 12/12/2018 | 1,199,000 | 1,200,219 | ||||||
Canadian Imperial Bank of Commerce | 1,858,000 | 1,872,082 | ||||||
Citibank NA | 3,000,000 | 3,002,127 | ||||||
(ICE LIBOR USD | 400,000 | 400,773 | ||||||
Citigroup, Inc. | 325,000 | 330,160 | ||||||
Commonwealth Bank of Australia | 625,000 | 627,306 | ||||||
Cooperatieve Rabobank UA (ICE LIBOR USD | 600,000 | 601,643 | ||||||
Credit Agricole SA | 600,000 | 604,343 | ||||||
DBS Group Holdings Ltd. | 100,000 | 100,206 | ||||||
Fifth Third Bank | 1,500,000 | 1,496,930 |
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 281 |
Table of Contents
FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Banks – (continued) | ||||||||
Intesa Sanpaolo SpA | $ | 625,000 | $ | 628,643 | ||||
JPMorgan Chase & Co. | 750,000 | 754,785 | ||||||
Manufacturers & Traders Trust Co. (ICE LIBOR USD 3 Month + 0.27%), | 2,500,000 | 2,500,982 | ||||||
National Australia Bank Ltd. (ICE LIBOR USD | 2,000,000 | 2,011,900 | ||||||
National Bank of Canada | 1,100,000 | 1,097,682 | ||||||
(ICE LIBOR USD | 700,000 | 704,447 | ||||||
PNC Bank NA |
| |||||||
(ICE LIBOR USD | 900,000 | 903,864 | ||||||
Royal Bank of Canada |
| |||||||
(ICE LIBOR USD | 145,000 | 145,498 | ||||||
(ICE LIBOR USD | 829,000 | 831,480 | ||||||
Santander UK plc | 900,000 | 891,797 | ||||||
Sumitomo Mitsui Banking Corp. |
| |||||||
(ICE LIBOR USD | 500,000 | 500,578 | ||||||
Sumitomo Mitsui Trust Bank Ltd. |
| |||||||
(ICE LIBOR USD | 1,000,000 | 1,002,359 | ||||||
US Bancorp |
| |||||||
(ICE LIBOR USD | 406,000 | 407,163 |
Investments | Principal Amount | Value | ||||||
Banks – (continued) | ||||||||
US Bank NA |
| |||||||
(ICE LIBOR USD | $ | 750,000 | $ | 750,008 | ||||
Wells Fargo & Co. |
| |||||||
Series N, 2.15%, 1/30/2020 | 12,000 | 11,845 | ||||||
Westpac Banking Corp. |
| |||||||
(ICE LIBOR USD | 517,000 | 519,327 | ||||||
29,711,663 | ||||||||
Biotechnology – 3.8% | ||||||||
AbbVie, Inc. | 2,054,000 | 2,053,689 | ||||||
Amgen, Inc. |
| |||||||
(ICE LIBOR USD | 1,168,000 | 1,170,476 | ||||||
Gilead Sciences, Inc. | 350,000 | 349,492 | ||||||
(ICE LIBOR USD | 1,573,000 | 1,573,323 | ||||||
5,146,980 | ||||||||
Capital Markets – 3.4% | ||||||||
Ares Capital Corp. | 1,300,000 | 1,312,949 | ||||||
Goldman Sachs Group, Inc. (The) | 160,000 | 160,200 | ||||||
7.50%, 2/15/2019 | 995,000 | 1,032,612 | ||||||
1.95%, 7/23/2019 | 446,000 | 440,882 | ||||||
(ICE LIBOR USD | 250,000 | 251,063 | ||||||
Morgan Stanley | 209,000 | 208,923 | ||||||
(ICE LIBOR USD | 350,000 | 351,277 | ||||||
Nasdaq, Inc. |
| |||||||
(ICE LIBOR USD | 400,000 | 400,718 |
See Accompanying Notes to the Financial Statements.
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FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Capital Markets – (continued) | ||||||||
UBS AG |
| |||||||
(ICE LIBOR USD | $ | 500,000 | $ | 500,872 | ||||
4,659,496 | ||||||||
Chemicals – 0.8% | ||||||||
Ecolab, Inc. | 140,000 | 139,355 | ||||||
EI du Pont de Nemours & Co. | 140,000 | 141,036 | ||||||
(ICE LIBOR USD | 844,000 | 846,505 | ||||||
1,126,896 | ||||||||
Communications Equipment – 0.3% | ||||||||
Cisco Systems, Inc. |
| |||||||
(ICE LIBOR USD | 449,000 | 450,848 | ||||||
Consumer Finance – 11.1% | ||||||||
American Express Credit Corp. |
| |||||||
(ICE LIBOR USD | 616,000 | 618,473 | ||||||
(ICE LIBOR USD | 1,375,000 | 1,380,396 | ||||||
American Honda Finance Corp. |
| |||||||
(ICE LIBOR USD | 466,000 | 468,085 | ||||||
(ICE LIBOR USD | 1,441,000 | 1,445,582 | ||||||
Capital One Financial Corp. |
| |||||||
(ICE LIBOR USD | 592,000 | 594,468 |
Investments | Principal Amount | Value | ||||||
Consumer Finance – (continued) | ||||||||
(ICE LIBOR USD | $ | 250,000 | $ | 248,838 | ||||
Caterpillar Financial Services Corp. | 1,654,000 | 1,658,221 | ||||||
Ford Motor Credit Co. LLC 2.24%, 6/15/2018 | 854,000 | 853,763 | ||||||
Series 1, (ICE LIBOR USD 3 Month + 0.83%), 2.90%, 3/12/2019(a) | 1,000,000 | 1,003,516 | ||||||
General Motors Financial Co., Inc. | 1,000,000 | 997,657 | ||||||
2.45%, 11/6/2020 | 1,125,000 | 1,100,316 | ||||||
Harley-Davidson Financial Services, Inc. | 1,034,000 | 1,035,230 | ||||||
John Deere Capital Corp. 1.95%, 12/13/2018 | 13,000 | 12,971 | ||||||
(ICE LIBOR USD | 1,298,000 | 1,303,006 | ||||||
Toyota Motor Credit Corp. |
| |||||||
(ICE LIBOR USD | 1,100,000 | 1,101,034 | ||||||
(ICE LIBOR USD | 1,168,000 | 1,173,019 | ||||||
14,994,575 | ||||||||
Diversified Financial Services – 2.4% | ||||||||
JPMorgan Chase Bank NA (ICE LIBOR USD | 1,000,000 | 1,001,406 | ||||||
(ICE LIBOR USD | 1,500,000 | 1,501,834 | ||||||
Shell International Finance BV (ICE LIBOR USD | 686,000 | 687,960 |
See Accompanying Notes to the Financial Statements.
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FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Diversified Financial Services – (continued) | ||||||||
Siemens Financieringsmaatschappij NV | $ | 45,000 | $ | 45,222 | ||||
3,236,422 | ||||||||
Diversified Telecommunication Services – 1.5% | ||||||||
AT&T, Inc. | 1,246,000 | 1,247,418 | ||||||
Verizon Communications, Inc. (ICE LIBOR USD | 800,000 | 804,801 | ||||||
2,052,219 | ||||||||
Electric Utilities – 2.5% | ||||||||
Duke Energy Corp. | 1,090,000 | 1,089,422 | ||||||
6.25%, 6/15/2018 | 300,000 | 301,368 | ||||||
Pacific Gas & Electric Co. | 2,000,000 | 1,998,077 | ||||||
3,388,867 | ||||||||
Electrical Equipment – 0.2% | ||||||||
Eaton Corp. | 330,000 | 330,367 | ||||||
Electronic Equipment, Instruments & Components – 0.7% | ||||||||
Amphenol Corp. 2.55%, 1/30/2019 | 1,000,000 | 999,029 | ||||||
Energy Equipment & Services – 1.1% | ||||||||
Schlumberger Finance Canada Ltd. | 1,201,000 | 1,174,173 | ||||||
Schlumberger Holdings Corp. 2.35%, 12/21/2018(b) | 275,000 | 274,160 | ||||||
1,448,333 |
Investments | Principal Amount | Value | ||||||
Food & Staples Retailing – 2.8% | ||||||||
CVS Health Corp. | $ | 1,441,000 | $ | 1,448,118 | ||||
Kroger Co. (The) | 1,055,000 | 1,049,173 | ||||||
Sysco Corp. | 1,300,000 | 1,285,994 | ||||||
3,783,285 | ||||||||
Food Products – 3.5% | ||||||||
Campbell Soup Co. | 1,000,000 | 1,002,661 | ||||||
Hershey Co. (The) 1.60%, 8/21/2018 | 1,385,000 | 1,382,048 | ||||||
JM Smucker Co. (The) 2.20%, 12/6/2019 | 375,000 | 370,443 | ||||||
Mondelez International, Inc. (ICE LIBOR USD | 1,300,000 | 1,302,956 | ||||||
Tyson Foods, Inc. | 631,000 | 632,465 | ||||||
(ICE LIBOR USD | 32,000 | 32,098 | ||||||
4,722,671 | ||||||||
Health Care Providers & Services – 1.2% | ||||||||
Cardinal Health, Inc. 1.95%, 6/14/2019 | 1,034,000 | 1,024,451 | ||||||
McKesson Corp. 2.28%, 3/15/2019 | 650,000 | 647,897 | ||||||
1,672,348 | ||||||||
Hotels, Restaurants & Leisure – 1.1% | ||||||||
Marriott International, Inc. | 225,000 | 225,350 | ||||||
McDonald’s Corp. | 790,000 | 789,766 | ||||||
5.00%, 2/1/2019 | 515,000 | 523,819 | ||||||
1,538,935 |
See Accompanying Notes to the Financial Statements.
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FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Household Durables – 0.7% | ||||||||
DR Horton, Inc. | $ | 245,000 | $ | 246,117 | ||||
2.55%, 12/1/2020 | 644,000 | 632,341 | ||||||
878,458 | ||||||||
Household Products – 1.3% | ||||||||
Church & Dwight Co., Inc. | 1,046,000 | 1,046,082 | ||||||
Kimberly-Clark Corp. 1.90%, 5/22/2019 | 185,000 | 183,860 | ||||||
Procter & Gamble Co. (The) (ICE LIBOR USD 3 Month + 0.27%), | 553,000 | 555,932 | ||||||
1,785,874 | ||||||||
Independent Power and Renewable Electricity Producers – 0.9% | ||||||||
Southern Power Co. Series 15A, 1.50%, 6/1/2018 | 1,200,000 | 1,198,992 | ||||||
Industrial Conglomerates – 2.0% | ||||||||
General Electric Co. (ICE LIBOR USD 3 Month + 0.51%), 2.86%, 1/14/2019(a) | 527,000 | 527,787 | ||||||
Honeywell International, Inc. 1.40%, 10/30/2019 | 690,000 | 676,608 | ||||||
(ICE LIBOR USD 3 Month + 0.04%), 2.40%, 10/30/2019(a) | 1,497,000 | 1,496,745 | ||||||
2,701,140 | ||||||||
Insurance – 0.8% | ||||||||
Allstate Corp. (The) (ICE LIBOR USD 3 Month + 0.43%), 2.73%, 3/29/2021(a) | 100,000 | 100,380 | ||||||
Berkshire Hathaway Finance Corp. (ICE LIBOR USD 3 Month + 0.69%), | 550,000 | 553,210 |
Investments | Principal Amount | Value | ||||||
Insurance – (continued) | ||||||||
(ICE LIBOR USD 3 Month + 0.32%), | $ | 416,000 | $ | 417,568 | ||||
1,071,158 | ||||||||
Internet Software & Services – 0.3% | ||||||||
Tencent Holdings Ltd. (ICE LIBOR USD 3 Month + 0.61%), | 455,000 | 457,130 | ||||||
IT Services – 0.1% | ||||||||
Mastercard, Inc. | 112,000 | 111,490 | ||||||
Life Sciences Tools & Services – 1.5% | ||||||||
Thermo Fisher Scientific, Inc. | 2,075,000 | 2,070,785 | ||||||
Machinery – 2.9% | ||||||||
Illinois Tool Works, Inc. | 1,164,000 | 1,202,583 | ||||||
Stanley Black & Decker, Inc. | 2,690,000 | 2,679,020 | ||||||
3,881,603 | ||||||||
Media – 1.0% | ||||||||
NBCUniversal Enterprise, Inc. (ICE LIBOR USD 3 Month + 0.40%), | 1,300,000 | 1,307,612 | ||||||
Multiline Retail – 0.4% | ||||||||
Dollar Tree, Inc. (ICE LIBOR USD 3 Month + 0.70%), 3.06%, 4/17/2020(a) | 540,000 | 541,624 | ||||||
Multi-Utilities – 1.6% | ||||||||
Dominion Energy, Inc. | 680,000 | 683,298 | ||||||
Series A, | 610,000 | 606,248 | ||||||
Sempra Energy | 100,000 | 100,443 |
See Accompanying Notes to the Financial Statements.
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FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
CORPORATE BONDS – (continued) | ||||||||
Multi-Utilities – (continued) | ||||||||
(ICE LIBOR USD 3 Month + 0.25%), 2.60%, 7/15/2019(a) | $ | 720,000 | $ | 721,370 | ||||
2,111,359 | ||||||||
Oil, Gas & Consumable Fuels – 4.3% | ||||||||
BP Capital Markets plc | 401,000 | 400,933 | ||||||
Chevron Corp. (ICE LIBOR USD 3 Month + 0.21%), 2.23%, 3/3/2020(a) | 750,000 | 752,192 | ||||||
ConocoPhillips Co. (ICE LIBOR USD 3 Month + 0.33%), 2.17%, 5/15/2018(a) | 875,000 | 874,996 | ||||||
Enterprise Products Operating LLC 1.65%, 5/7/2018 | 1,270,000 | 1,269,814 | ||||||
Phillips 66 |
| |||||||
(ICE LIBOR USD | 114,000 | 114,234 | ||||||
Valero Energy Corp. 9.38%, 3/15/2019 | 2,318,000 | 2,447,060 | ||||||
5,859,229 | ||||||||
Pharmaceuticals – 0.6% | ||||||||
AstraZeneca plc 1.75%, 11/16/2018 | 189,000 | 188,347 | ||||||
(ICE LIBOR USD | 625,000 | 626,628 | ||||||
814,975 | ||||||||
Road & Rail – 1.3% | ||||||||
Penske Truck Leasing Co. LP 3.05%, 1/9/2020(b) | 665,000 | 664,814 | ||||||
Ryder System, Inc. 2.45%, 11/15/2018 | 500,000 | 499,802 | ||||||
2.35%, 2/26/2019 | 200,000 | 199,097 | ||||||
2.55%, 6/1/2019 | 340,000 | 338,531 | ||||||
1,702,244 |
Investments | Principal Amount | Value | ||||||
Semiconductors & Semiconductor Equipment – 1.1% | ||||||||
Intel Corp. |
| |||||||
(ICE LIBOR USD | $ | 1,185,000 | $ | 1,186,736 | ||||
QUALCOMM, Inc. |
| |||||||
(ICE LIBOR USD | 313,000 | 314,367 | ||||||
1,501,103 | ||||||||
Specialty Retail – 2.4% | ||||||||
AutoZone, Inc. 7.13%, 8/1/2018 | 860,000 | 869,709 | ||||||
Home Depot, Inc. (The) 2.00%, 6/15/2019 | 3,000 | 2,983 | ||||||
(ICE LIBOR USD | 1,497,000 | 1,501,488 | ||||||
Lowe’s Cos., Inc. |
| |||||||
(ICE LIBOR USD | 897,000 | 901,472 | ||||||
3,275,652 | ||||||||
Technology Hardware, Storage & Peripherals – 1.5% | ||||||||
Hewlett Packard Enterprise Co. 2.85%, 10/5/2018 | 2,075,000 | 2,078,119 | ||||||
Trading Companies & Distributors – 1.4% | ||||||||
Air Lease Corp. 3.38%, 1/15/2019 | 1,930,000 | 1,936,295 | ||||||
Wireless Telecommunication Services – 0.5% | ||||||||
Vodafone Group plc 4.63%, 7/15/2018 | 645,000 | 647,661 | ||||||
Total Corporate Bonds (Cost $121,440,821) | 121,428,889 |
See Accompanying Notes to the Financial Statements.
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FlexShares® Ready Access Variable Income Fund (cont.)
Investments | Principal Amount | Value | ||||||
ASSET-BACKED SECURITIES – 3.8% | ||||||||
American Express Credit Account Master Trust | ||||||||
Series 2017-6, Class A, 2.04%, 5/15/2023 | $ | 1,000,000 | $ | 980,437 | ||||
Series 2017-2, Class A, 2.35%, 9/16/2024(c) | 2,000,000 | 2,016,413 | ||||||
CarMax Auto Owner Trust | ||||||||
Series 2017-1, Class A2, 1.54%, 2/18/2020 | 512,042 | 510,943 | ||||||
Citibank Credit Card Issuance Trust | ||||||||
Series 2017-A4, Class A4, 2.12%, 4/7/2022(c) | 900,000 | 902,042 | ||||||
Hyundai Auto Lease Securitization Trust | ||||||||
Series 2017-A, Class A2B, 2.20%, 7/15/2019(b) (c) | 269,653 | 269,781 | ||||||
John Deere Owner Trust 2017 | ||||||||
Series 2017-A, Class A2, 1.50%, 10/15/2019 | 521,673 | 520,387 | ||||||
Total Asset-Backed Securities (Cost $5,203,229) | 5,200,003 | |||||||
FOREIGN GOVERNMENT SECURITIES – 1.5% | ||||||||
Japan Bank for International Cooperation | ||||||||
(ICE LIBOR USD | 2,000,000 | 2,015,209 | ||||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 1.1% | ||||||||
Holmes Master Issuer plc | ||||||||
Series 2018-1A, Class A2, 2.71%, 10/15/2054(b) (c) | 400,000 | 400,292 | ||||||
Silverstone Master Issuer plc | ||||||||
Series 2018-1A, Class 1A, 2.75%, 1/21/2070(b) (c) | 1,100,000 | 1,101,199 | ||||||
Total Collateralized Mortgage Obligations (Cost $1,500,000) | 1,501,491 |
Investments | Principal Amount | Value | ||||||
SHORT-TERM INVESTMENTS – 4.1% | ||||||||
CERTIFICATES OF DEPOSIT – 2.2% | ||||||||
Toronto-Dominion Bank (The) 1.75%, 10/26/2018 (Cost $3,000,000) | $ | 3,000,000 | $ | 2,990,496 | ||||
COMMERCIAL PAPER – 1.9% | ||||||||
McCormick & Co., Inc. 1.96%, 6/4/2018(d) (e) | 1,300,000 | 1,297,270 | ||||||
Walgreens Boots Alliance, Inc. 2.08%, 5/7/2018(d) (e) | 1,300,000 | 1,299,445 | ||||||
Total Commercial Paper (Cost $2,597,157) | 2,596,715 | |||||||
Total Short-term Investments (Cost $5,597,157) | 5,587,211 | |||||||
Total Investments – 100.0% (Cost $135,741,207) | 135,732,803 | |||||||
Other Assets Less Liabilities – 0.0%(f) |
| 8,173 | ||||||
NET ASSETS – 100.0% | $ | 135,740,976 |
(a) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the rate in effect as of April 30, 2018. |
(b) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The value of these securities is determined by valuations supplied by a pricing service or brokers, or, if not available, in accordance with procedures established by the Board of Trustees. |
(c) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. The interest rate shown was the current rate as of April 30, 2018. |
(d) | Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration normally to qualified institutional buyers. |
(e) | The rate shown was the current yield as of April 30, 2018. |
(f) | Represents less than 0.05% of net assets. |
Percentages shown are based on Net Assets.
Abbreviations
ICE – Intercontinental Exchange
LIBOR – London Interbank Offered Rate
USD – US Dollar
See Accompanying Notes to the Financial Statements.
FLEXSHARES SEMIANNUAL REPORT | 287 |
Table of Contents
FlexShares® Ready Access Variable Income Fund (cont.)
As of April 30, 2018, 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 | $ | 203,151 | ||
Aggregate gross unrealized depreciation | (218,829 | ) | ||
Net unrealized depreciation | $ | (15,678 | ) | |
Federal income tax cost | $ | 135,748,481 |
FlexShares® Ready Access Variable Income Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2018:
Australia | 3.1 | % | ||
Canada | 6.4 | |||
China | 0.3 | |||
France | 1.7 | |||
Germany | 1.6 | |||
Italy | 0.5 | |||
Japan | 2.6 | |||
Netherlands | 0.9 | |||
Singapore | 0.1 | |||
Switzerland | 0.4 | |||
United Kingdom | 3.5 | |||
United States | 78.9 | |||
Other1 | 0.0 | † | ||
100.0 | % |
† | Amount represents less than 0.05%. |
1 | Includes any non-fixed-income securities and net other assets (liabilities). |
See Accompanying Notes to the Financial Statements.
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Schedule of Investments
FlexShares® Core Select Bond Fund
April 30, 2018 (Unaudited)
Investments | Shares | Value | ||||||
EXCHANGE TRADED FUNDS – 99.2% | ||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund(a) | 131,260 | $ | 6,442,897 | |||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund(a) | 68,076 | 3,468,472 | ||||||
FlexShares Disciplined Duration MBS Index Fund(a) | 340,805 | 7,903,267 | ||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund(a) | 20,212 | 491,354 | ||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund(a) | 18,418 | 453,820 | ||||||
FlexShares Ready Access Variable Income Fund(a) | 10,273 | 773,557 | ||||||
iShares 1-3 Year Credit Bond ETF | 9,374 | 972,459 | ||||||
iShares 3-7 Year Treasury Bond ETF | 14,545 | 1,738,419 | ||||||
Total Exchange Traded Funds (Cost $22,620,597) | 22,244,245 | |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS – 0.3% | ||||||||
U.S. TREASURY OBLIGATIONS – 0.3% | ||||||||
U.S. Treasury Bills | $ | 65,000 | 64,750 | |||||
Total Investments – 99.5% (Cost $22,685,355) | 22,308,995 | |||||||
Other Assets Less Liabilities – 0.5% |
| 118,452 | ||||||
NET ASSETS – 100.0% | $ | 22,427,447 |
(a) | Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Funds. |
(b) | The rate shown was the current yield as of April 30, 2018. |
Percentages shown are based on Net Assets.
As of April 30, 2018, 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 | $ | 264 | ||
Aggregate gross unrealized depreciation | (411,320 | ) | ||
Net unrealized depreciation | $ | (411,056 | ) | |
Federal income tax cost | $ | 22,720,051 |
See Accompanying Notes to the Financial Statements.
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Table of Contents
FlexShares® Core Select Bond Fund (cont.)
As of April 30, 2018, the FlexShares Core Select Bond Fund was invested in securities of affiliated FlexShares Funds. The Schedules of Investments of the affiliated FlexShares Funds are located elsewhere in this Report.
Investment in a company which was affiliated for the period ending April 30, 2018, was as follows:
Security | Value October 31, 2017 | Purchases at Cost | Sales Proceeds | Shares April 30, 2018 | Value April 30, 2018 | Change in Unrealized Appreciation (Depreciation) | Dividend Income | Realized Gain/(Loss) | ||||||||||||||||||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund | $ | 1,162,832 | $ | 6,318,238 | $ | 873,931 | 131,260 | $ | 6,442,897 | $ | (152,323 | ) | $ | 44,936 | $ | (11,919 | ) | |||||||||||||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 636,232 | 3,754,111 | 769,671 | 68,076 | 3,468,472 | (121,116 | ) | 37,795 | (31,084 | ) | ||||||||||||||||||||||
FlexShares Disciplined Duration MBS Index Fund | 1,159,915 | 7,283,896 | 427,635 | 340,805 | 7,903,267 | (105,488 | ) | 63,267 | (7,421 | ) | ||||||||||||||||||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | — | 716,077 | 222,915 | 20,212 | 491,354 | (30 | ) | 648 | (1,778 | ) | ||||||||||||||||||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 141,132 | 833,899 | 515,814 | 18,418 | 453,820 | 1,007 | 1,993 | (6,404 | ) | |||||||||||||||||||||||
FlexShares Ready Access Variable Income Fund | 262,297 | 1,175,209 | 662,694 | 10,273 | 773,557 | (216 | ) | 2,700 | (1,039 | ) | ||||||||||||||||||||||
$ | 3,362,408 | $ | 20,081,430 | $ | 3,472,660 | 589,044 | $ | 19,533,367 | $ | (378,166 | ) | $ | 151,339 | $ | (59,645 | ) |
See Accompanying Notes to the Financial Statements.
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Notes to the Financial Statements April 30, 2018 (Unaudited)
1. Organization
FlexShares® Trust (the “Trust”), a Maryland statutory trust, was formed on May 13, 2010, originally named NT ETF Trust and renamed FlexShares® Trust as of April 12, 2011. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940 (the “1940 Act”), as amended. The Trust consists of twenty-five operational exchange-traded funds as of April 30, 2018 (each a “Fund” and collectively, the “Funds”). The FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares® Morningstar Global Upstream Natural Resources Index Fund, FlexShares® STOXX® Global Broad Infrastructure Index Fund, FlexShares® Global Quality Real Estate Index Fund, FlexShares® Real Assets Allocation Index Fund, FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares® Credit-Scored US Corporate Bond Index Fund, FlexShares® Credit-Scored US Long Corporate Bond Index Fund and the FlexShares® Ready Access Variable Income Fund are non-diversified series of the Trust, pursuant to the 1940 Act. The FlexShares® Morningstar US Market Factor Tilt Index Fund, FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares® US Quality Large Cap Index Fund, FlexShares® STOXX® US ESG Impact Index Fund, FlexShares® STOXX® Global ESG Impact Index Fund, FlexShares® Disciplined Duration MBS Index Fund, FlexShares® Quality Dividend Index Fund, FlexShares® Quality Dividend Defensive Index Fund, FlexShares® Quality Dividend Dynamic Index Fund, FlexShares® International Quality Dividend Index Fund, FlexShares® International Quality Dividend Defensive Index Fund, FlexShares® International Quality Dividend Dynamic Index Fund and the FlexShares® Core Select Bond Fund are diversified series of the Trust, pursuant to the 1940 Act.
Each Fund, except the FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund, seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of a specified benchmark index (each an
“Underlying Index”). The FlexShares US Quality Large Cap Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund and the FlexShares Credit-Scored US Long Corporate Bond Index Fund seek to track Underlying Indices developed by Northern Trust Investments, Inc. (“NTI” or “Investment Adviser”), a subsidiary of Northern Trust Corporation. The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund and FlexShares Morningstar Global Upstream Natural Resources Index Fund seek to track Underlying Indices sponsored by Morningstar, Inc. The FlexShares STOXX® US ESG Impact Index Fund, FlexShares STOXX® Global ESG Impact Index Fund, and FlexShares STOXX® Global Broad Infrastructure Index Fund seek to track Underlying Indices sponsored by STOXX. The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and FlexShares iBoxx 5-Year Target Duration TIPS Index Fund seek to track Underlying Indices sponsored by Markit Indices Limited. The FlexShares Disciplined Duration MBS Index Fund seeks to track an Underlying Index sponsored by ICE Data Indices, LLC.
Each of the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund and FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund currently seeks its investment objective by investing a substantial amount of its assets in the shares of another FlexShares ETF. Each of these Funds may also invest directly in the securities included in its Underlying Index. The FlexShares Real Assets Allocation Index Fund is a fund of funds that seeks its investment objective by investing primarily in the shares of other FlexShares ETFs that are eligible for inclusion in its Underlying Index, rather than in securities of individual
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companies. The FlexShares Core Select Bond Fund seeks to achieve its investment objective by investing, under normal circumstances in U.S. dollar-denominated investment-grade fixed-income securities either directly or indirectly through FlexShares ETFs, unaffiliated ETFs and other registered investment companies. The investment performance each of the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund and FlexShares Core Select Bond Fund is directly related to the performance of its underlying fund(s).
The FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund are actively managed and do not seek to replicate the performance of a specified index. The FlexShares Ready Access Variable Income Fund seeks maximum current income consistent with the preservation of capital and liquidity. The FlexShares Core Select Bond Fund seeks total return and preservation of capital. Each Fund, except the FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund, is referred to herein as an “Index Fund.” Each Fund is managed by the Investment Adviser.
2. Significant Accounting Policies
The Trust, which is an investment company, follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S.”) or (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Investment Valuation
Each Fund’s Net Asset Value (“NAV”) is determined daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time, on
each day the NYSE is open for trading, based on prices at the time of closing provided that any U.S. fixed-income assets may be valued as of the announced closing time for trading in fixed-income instruments on any day that the Securities Industry and Financial Markets Association announces an early closing time. The NAV of a fund is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
The investments of the Funds are valued at fair value pursuant to the pricing policy and procedures approved by the Board of Trustees. The Funds’ investments are valued using market quotations when available. When market quotations are not readily available, are deemed unreliable, or do not reflect material events occurring between the close of local markets and the time of valuation, the Funds value securities at fair value as determined in good faith in accordance with the Funds’ fair value pricing procedures as approved by the Board of Trustees. Such circumstances includes periods when trading in a security is suspended, the exchange or market on which a security trades closes early, the trading volume in a security is limited, corporate actions and announcements take place, or regulatory news affecting an issuer is released, such as government approvals. Additionally, the Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of market values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and the Trust’s fair value procedures. Other events that can trigger fair valuing of foreign securities include, for example, significant fluctuations in general market indicators, government actions, or natural disasters.
The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other investment companies and investors to price the same investments. Fair value pricing involves subjective judgments and it is possible that a fair value determination for a portfolio security may be materially different than the value that could be realized
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upon the sale of such security. In addition, fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by an Index Fund’s Underlying Index. This difference may adversely affect an Index Fund’s ability to track its Underlying Index. Portfolio securities of certain Funds are listed on foreign exchanges and their value may change on days when shareholders will not be able to purchase or sell Fund shares.
Security prices are generally provided by independent pricing services. Portfolio securities listed or traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-denominated foreign securities or American Depositary Receipts (“ADRs”), are valued at the closing price, or last sale price, reported on the exchange or system where the security is principally traded. The closing price for securities traded on the NASDAQ/NMS is the Nasdaq Official Closing Price (“NOCP”). If there have been no sales for that day on the exchange or system where the security is principally traded, then the value is determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales of the security for that day on any exchange or system, the security is valued at fair value pursuant to the Trust’s fair value procedures.
Securities that are traded regularly in the over-the-counter market (other than the NASDAQ/NMS), including securities listed on exchanges but primarily traded over-the-counter, are valued on the basis of bid quotes or the mean between the bid and asked quotes based upon quotes furnished by one or more broker-dealers or market makers for those securities. Securities that may be traded over-the-counter include equity securities, fixed-income securities, non-exchange-listed foreign securities, and certain derivative instruments. Fixed income securities may be valued using prices provided directly from one or more broker-dealers, market makers, or independent third-party pricing services which may use matrix pricing and valuation models, as well as recent market transactions for the same or similar assets, to derive values when such prices are believed to reflect fair market values of such securities. Such prices may be determined by taking into account securities prices, yields, maturities, call features, ratings, prepayment speeds,
credit risks, cash flows, institutional size trading in similar groups of securities and developments related to specific securities. Fixed-income securities maturing within a relatively short period, less than 60 days, are valued at amortized cost when it approximates fair value.
Foreign equity securities are generally priced at the closing price or last sales price reported on the foreign exchange on which they are principally traded. If there have been no sales for that day on the primary exchange, then the value is determined with reference to the last sale price on any other exchange. If there have been no sales of the security for that day on any exchange, the security will be valued at fair value pursuant to the Trust’s fair value procedures. Spot and forward foreign currency exchange contracts generally are valued using an independent pricing service. The value of assets denominated in foreign currencies is converted into U.S. dollars using exchange rates deemed appropriate by NTI as Investment Adviser. Any use of a different rate from the rates used by the Index Provider may adversely affect the Fund’s ability to track its Underlying Index. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index.
Exchange-traded financial futures and options thereon are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided bid prices, as are swaps. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. If there was no sale on that day, and for other non-exchange traded derivatives, the contract is valued at fair value pursuant to the Trust’s fair value procedures.
Each Fund relies on various sources to calculate its NAV. The ability of the Funds’ administrator to calculate the NAV per share of the Funds is subject to operational risks associated with processing or human errors, systems or technology failures, and errors caused by third party service providers, data sources, or trading counterparties. Such failures may result in delays in the calculation of the Funds’ NAVs and/or the inability to calculate NAV over extended
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time periods. The Funds may be unable to recover any losses associated with such failures, and it may be necessary for alternative procedures to be followed to price portfolio securities when determining the Funds’ NAVs.
NTI has established a pricing and valuation committee (the “Northern Trust Asset Management PVC”) whose membership includes representatives of NTI. The Northern Trust Asset Management PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process, subject to the Board of Trustees’ oversight.
The Northern Trust Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Northern Trust Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI monitors markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Northern Trust Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.
Various inputs are used in determining the value of each Fund’s investments. These inputs are summarized in three levels listed below:
• | Level 1—Quoted prices in active markets for identical assets on the measurement date. |
• | Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
• | Level 3—Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term debt securities may be valued at amortized cost, as long as amortized cost approximates the current fair value of a security, but since the valuation is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
For each Level 3 security, if any, that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations.
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Notes to the Financial Statements (cont.)
The following is a summary of the valuations as of April 30, 2018 for each Fund based upon the three levels defined above. During the period ended April 30, 2018, there were three Level 3 securities. All the transfers in and out of the levels during the period are assumed to be transferred on the last day of the period at their current value. Please refer to the Schedules of Investments to view equity and debt securities segregated by industry type where applicable.
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Household Durables | $ | 11,968,770 | $ | 1,246 | $ | — | $ | 11,970,016 | ||||||||
Other* | 1,176,570,045 | — | — | 1,176,570,045 | ||||||||||||
Rights | — | — | 15,787 | 15,787 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Bank Notes | — | 2,000,000 | — | 2,000,000 | ||||||||||||
Certificates of Deposit | — | 50,001,286 | — | 50,001,286 | ||||||||||||
Commercial Paper | — | 8,999,146 | — | 8,999,146 | ||||||||||||
Funding Agreements | — | 3,000,000 | — | 3,000,000 | ||||||||||||
Repurchase Agreements | — | 50,031,342 | — | 50,031,342 | ||||||||||||
Total Investments | $ | 1,188,538,815 | $ | 114,033,020 | $ | 15,787 | $ | 1,302,587,622 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (198,685 | ) | $ | — | $ | — | $ | (198,685 | ) | ||||||
Total Other Financial Instruments | $ | (198,685 | ) | $ | — | $ | — | $ | (198,685 | ) |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Balance as of 10/31/2017 | $ | 15,787 | ||
Total gain or loss (realized/unrealized included in earnings) | — | |||
Purchases† | — | |||
Sales†† | — | |||
Transfers into Level 3 | — | |||
Transfers out of Level 3 | — | |||
Balance as of 04/30/2018 | $ | 15,787 | ||
The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at 04/30/2018. | $ | — |
Contingent Value Rights | Fair Value at 04/30/2018 | Valuation Techniques | Unobservable Inputs | Sensitivity1,2 | |||||||||||||
Media General, Inc. | $ | 2,226 | Income Approach | Estimated Recovery Value | 1 | ||||||||||||
Dyax Corp. | $ | 13,561 | Discounted Cash Flow Analysis | Discount Rate and Projected Cash Flows | 2 |
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputsa | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Closed End Funds | $ | 880,780 | $ | — | $ | — | $ | 880,780 | ||||||||
Common Stocks | ||||||||||||||||
Aerospace & Defense | 7,466,405 | 5,283 | — | 7,471,688 | ||||||||||||
Health Care Providers & Services | 7,894,757 | 34,991 | — | 7,929,748 | ||||||||||||
Insurance | 55,089,579 | 229,918 | — | 55,319,497 | ||||||||||||
Oil, Gas & Consumable Fuels | 51,187,539 | 9,584 | — | 51,197,123 | ||||||||||||
Pharmaceuticals | 38,075,275 | 10 | — | 38,075,285 | ||||||||||||
Other* | 935,219,786 | — | — | 935,219,786 | ||||||||||||
Investment Companies | 2,699 | — | — | 2,699 | ||||||||||||
Rights | — | 26 | 19,910 | 19,936 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 16,242,330 | — | 16,242,330 | ||||||||||||
Total Investments | $ | 1,095,816,820 | $ | 16,522,142 | $ | 19,910 | $ | 1,112,358,872 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 829,978 | $ | — | $ | — | $ | 829,978 | ||||||||
Forward Foreign Currency Contracts | — | 146,677 | — | 146,677 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Contracts | — | (261,349 | ) | — | (261,349 | ) | ||||||||||
Total Other Financial Instruments | $ | 829,978 | $ | (114,672 | ) | $ | — | $ | 715,306 |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Balance as of 10/31/2017 | $ | — | ||
Total gain or loss (realized/unrealized included in earnings) | — | |||
Purchases† | 19,910 | |||
Sales†† | — | |||
Transfers into Level 3 | — | |||
Transfers out of Level 3 | — | |||
Balance as of 04/30/2018 | $ | 19,910 | ||
The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at 04/30/2018. | $ | — |
Contingent Value Rights | Fair Value at 04/30/2018 | Valuation Techniques | Unobservable Inputs | Sensitivity2 | |||||||||||||
GVC Holdings plc | $ | 19,910 | Discounted Cash Flow Analysis | Discount Rate and Projected Cash Flows | 2 |
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Pricesb | Level 2 — Other Significant Observable Inputsc | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Communications Equipment | $ | 2,817,009 | $ | 156,570 | $ | — | $ | 2,973,579 | ||||||||
Construction & Engineering | 14,731,107 | 312,794 | — | 15,043,901 | ||||||||||||
Construction Materials | 9,948,255 | 34,466 | — | 9,982,721 | ||||||||||||
Food & Staples Retailing | 7,597,867 | 947 | — | 7,598,814 | ||||||||||||
Food Products | 17,823,020 | 6,177 | — | 17,829,197 | ||||||||||||
Health Care Equipment & Supplies | 587,595 | 2,924 | — | 590,519 | ||||||||||||
Hotels, Restaurants & Leisure | 3,393,952 | 2,662 | — | 3,396,614 | ||||||||||||
Oil, Gas & Consumable Fuels | 43,748,184 | 6,217 | — | 43,754,401 | ||||||||||||
Pharmaceuticals | 6,357,458 | 256,291 | — | 6,613,749 | ||||||||||||
Real Estate Management & Development | 41,477,335 | 8,669 | — | 41,486,004 | ||||||||||||
Technology Hardware, Storage & Peripherals | 10,193,576 | 34,731,232 | — | 44,924,808 | ||||||||||||
Textiles, Apparel & Luxury Goods | 15,157,312 | 165,518 | — | 15,322,830 | ||||||||||||
Other* | 503,254,273 | — | — | 503,254,273 | ||||||||||||
Corporate Bonds* | — | 10,144 | — | 10,144 | ||||||||||||
Rights | — | 210 | — | 210 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 1,262,450 | — | 1,262,450 | ||||||||||||
Total Investments | $ | 677,086,943 | $ | 36,957,271 | $ | — | $ | 714,044,214 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 56,433 | $ | — | $ | 56,433 | ||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (158,236 | ) | — | — | (158,236 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (17,917 | ) | — | (17,917 | ) | ||||||||||
Total Other Financial Instruments | $ | (158,236 | ) | $ | 38,516 | $ | — | $ | (119,720 | ) | ||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Exchange Traded Funds | $ | 9,196,692 | $ | — | $ | — | $ | 9,196,692 | ||||||||
Total Investments | $ | 9,196,692 | $ | — | $ | — | $ | 9,196,692 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 144,961 | $ | — | $ | 144,961 | ||||||||
Total Other Financial Instruments | $ | — | $ | 144,961 | $ | — | $ | 144,961 |
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Exchange Traded Funds | $ | 35,312,316 | $ | — | $ | — | $ | 35,312,316 | ||||||||
Total Investments | $ | 35,312,316 | $ | — | $ | — | $ | 35,312,316 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 221,530 | $ | — | $ | 221,530 | ||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (9,678 | ) | — | — | (9,678 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (44,847 | ) | — | (44,847 | ) | ||||||||||
Total Other Financial Instruments | $ | (9,678 | ) | $ | 176,683 | $ | — | $ | 167,005 | |||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares US Quality Large Cap Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 42,558,734 | $ | — | $ | — | $ | 42,558,734 | ||||||||
Total Investments | $ | 42,558,734 | $ | — | $ | — | $ | 42,558,734 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (4,867 | ) | $ | — | $ | — | $ | (4,867 | ) | ||||||
Total Other Financial Instruments | $ | (4,867 | ) | $ | — | $ | — | $ | (4,867 | ) | ||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares STOXX® US ESG Impact Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 23,266,349 | $ | — | $ | — | $ | 23,266,349 | ||||||||
Total Investments | $ | 23,266,349 | $ | — | $ | — | $ | 23,266,349 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 1,013 | $ | — | $ | — | $ | 1,013 | ||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (4,097 | ) | — | — | (4,097 | ) | ||||||||||
Total Other Financial Instruments | $ | (3,084 | ) | $ | — | $ | — | $ | (3,084 | ) |
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares STOXX® Global ESG Impact Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 65,075,588 | $ | — | $ | — | $ | 65,075,588 | ||||||||
Total Investments | $ | 65,075,588 | $ | — | $ | — | $ | 65,075,588 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 2,687 | $ | — | $ | — | $ | 2,687 | ||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (10,940 | ) | — | — | (10,940 | ) | ||||||||||
Total Other Financial Instruments | $ | (8,253 | ) | $ | — | $ | — | $ | (8,253 | ) | ||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 5,546,552,301 | $ | — | $ | — | $ | 5,546,552,301 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Bank Notes | — | 2,000,000 | — | 2,000,000 | ||||||||||||
Certificates of Deposit | — | 42,001,943 | — | 42,001,943 | ||||||||||||
Commercial Paper | — | 5,998,992 | — | 5,998,992 | ||||||||||||
Funding Agreements | — | 3,000,000 | — | 3,000,000 | ||||||||||||
Repurchase Agreements | — | 35,770,508 | — | 35,770,508 | ||||||||||||
Total Investments | $ | 5,546,552,301 | $ | 88,771,443 | $ | — | $ | 5,635,323,744 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 820,836 | $ | — | $ | — | $ | 820,836 | ||||||||
Forward Foreign Currency Contracts | — | 765,924 | — | 765,924 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (237,564 | ) | — | — | (237,564 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (1,015,454 | ) | — | (1,015,454 | ) | ||||||||||
Total Other Financial Instruments | $ | 583,272 | $ | (249,530 | ) | $ | — | $ | 333,742 |
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Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Commercial Services & Supplies | $ | 27,512,751 | $ | 168,892 | $ | — | $ | 27,681,643 | ||||||||
Other* | 815,207,598 | — | — | 815,207,598 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 4,000,000 | — | 4,000,000 | ||||||||||||
Commercial Paper | — | 1,999,748 | — | 1,999,748 | ||||||||||||
Repurchase Agreements | — | 31,862,060 | — | 31,862,060 | ||||||||||||
Total Investments | $ | 842,720,349 | $ | 38,030,700 | $ | — | $ | 880,751,049 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 123,579 | $ | — | $ | — | $ | 123,579 | ||||||||
Forward Foreign Currency Contracts | — | 42,608 | — | 42,608 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (26,842 | ) | — | — | (26,842 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (49,369 | ) | — | (49,369 | ) | ||||||||||
Total Other Financial Instruments | $ | 96,737 | $ | (6,761 | ) | $ | — | $ | 89,976 | |||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Global Quality Real Estate Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 262,959,912 | $ | — | $ | — | $ | 262,959,912 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 3,720,119 | — | 3,720,119 | ||||||||||||
Total Investments | $ | 262,959,912 | $ | 3,720,119 | $ | — | $ | 266,680,031 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 99,738 | $ | — | $ | — | $ | 99,738 | ||||||||
Forward Foreign Currency Contracts | — | 12,297 | — | 12,297 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (84,080 | ) | — | — | (84,080 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (4,561 | ) | — | (4,561 | ) | ||||||||||
Total Other Financial Instruments | $ | 15,658 | $ | 7,736 | $ | — | $ | 23,394 |
300 | FLEXSHARES SEMIANNUAL REPORT |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Real Assets Allocation Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Exchange Traded Funds | $ | 11,836,476 | $ | — | $ | — | $ | 11,836,476 | ||||||||
Total Investments | $ | 11,836,476 | $ | — | $ | — | $ | 11,836,476 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Quality Dividend Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 1,822,160,554 | $ | — | $ | — | $ | 1,822,160,554 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Bank Notes | — | 2,000,000 | — | 2,000,000 | ||||||||||||
Certificates of Deposit | — | 55,965,547 | — | 55,965,547 | ||||||||||||
Commercial Paper | — | 9,999,299 | — | 9,999,299 | ||||||||||||
Funding Agreements | — | 4,000,000 | — | 4,000,000 | ||||||||||||
Repurchase Agreements | — | 75,165,341 | — | 75,165,341 | ||||||||||||
Total Investments | $ | 1,822,160,554 | $ | 147,130,187 | $ | — | $ | 1,969,290,741 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (689,288 | ) | $ | — | $ | — | $ | (689,288 | ) | ||||||
Total Other Financial Instruments | $ | (689,288 | ) | $ | — | $ | — | $ | (689,288 | ) | ||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Quality Dividend Defensive Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 301,016,027 | $ | — | $ | — | $ | 301,016,027 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 999,960 | — | 999,960 | ||||||||||||
Commercial Paper | — | 500,000 | — | 500,000 | ||||||||||||
Repurchase Agreements | — | 20,133,902 | — | 20,133,902 | ||||||||||||
Total Investments | $ | 301,016,027 | $ | 21,633,862 | $ | — | $ | 322,649,889 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (53,352 | ) | $ | — | $ | — | $ | (53,352 | ) | ||||||
Total Other Financial Instruments | $ | (53,352 | ) | $ | — | $ | — | $ | (53,352 | ) |
FLEXSHARES SEMIANNUAL REPORT | 301 |
Table of Contents
Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Quality Dividend Dynamic Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks* | $ | 46,487,980 | $ | — | $ | — | $ | 46,487,980 | ||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 2,377,799 | — | 2,377,799 | ||||||||||||
Total Investments | $ | 46,487,980 | $ | 2,377,799 | $ | — | $ | 48,865,779 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (13,330 | ) | $ | — | $ | — | $ | (13,330 | ) | ||||||
Total Other Financial Instruments | $ | (13,330 | ) | $ | — | $ | — | $ | (13,330 | ) | ||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputsd | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares International Quality Dividend Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Technology Hardware, Storage & Peripherals | $ | 29,776,893 | $ | 6,148,308 | $ | — | $ | 35,925,201 | ||||||||
Other* | 1,033,207,435 | — | — | 1,033,207,435 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Certificates of Deposit | — | 500,000 | — | 500,000 | ||||||||||||
Repurchase Agreements | — | 15,531,797 | — | 15,531,797 | ||||||||||||
Total Investments | $ | 1,062,984,328 | $ | 22,180,105 | $ | — | $ | 1,085,164,433 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 629,289 | $ | — | $ | — | $ | 629,289 | ||||||||
Forward Foreign Currency Contracts | — | 118,706 | — | 118,706 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (123,829 | ) | — | — | (123,829 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (194,111 | ) | — | (194,111 | ) | ||||||||||
Total Other Financial Instruments | $ | 505,460 | $ | (75,405 | ) | $ | — | $ | 430,055 |
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputse | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares International Quality Dividend Defensive Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Technology Hardware, Storage & Peripherals | $ | 2,332,567 | $ | 610,365 | $ | — | $ | 2,942,932 | ||||||||
Other* | 95,496,700 | — | — | 95,496,700 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 282,898 | — | 282,898 | ||||||||||||
Total Investments | $ | 97,829,267 | $ | 893,263 | $ | — | $ | 98,722,530 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 6,870 | $ | — | $ | — | $ | 6,870 | ||||||||
Forward Foreign Currency Contracts | — | 4,884 | — | 4,884 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (29,693 | ) | — | — | (29,693 | ) | ||||||||||
Forward Foreign Currency Contracts | — | (303 | ) | — | (303 | ) | ||||||||||
Total Other Financial Instruments | $ | (22,823 | ) | $ | 4,581 | $ | — | $ | (18,242 | ) | ||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputsf | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares International Quality Dividend Dynamic Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Technology Hardware, Storage & Peripherals | $ | 2,388,233 | $ | 307,663 | $ | — | $ | 2,695,896 | ||||||||
Other* | 84,032,213 | — | — | 84,032,213 | ||||||||||||
Securities Lending Reinvestments | ||||||||||||||||
Repurchase Agreements | — | 96,318 | — | 96,318 | ||||||||||||
Total Investments | $ | 86,420,446 | $ | 403,981 | $ | — | $ | 86,824,427 | ||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 6,305 | $ | — | $ | — | $ | 6,305 | ||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (6,717 | ) | — | — | (6,717 | ) | ||||||||||
Total Other Financial Instruments | $ | (412 | ) | $ | — | $ | — | $ | (412 | ) |
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 2,131,941,453 | $ | — | $ | 2,131,941,453 | ||||||||
Total Investments | $ | — | $ | 2,131,941,453 | $ | — | $ | 2,131,941,453 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 916,612,600 | $ | — | $ | 916,612,600 | ||||||||
Total Investments | $ | — | $ | 916,612,600 | $ | — | $ | 916,612,600 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Disciplined Duration MBS Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Mortgage-Backed Securities | $ | — | $ | 47,243,145 | $ | — | $ | 47,243,145 | ||||||||
Total Investments | $ | — | $ | 47,243,145 | $ | — | $ | 47,243,145 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Credit-Scored US Corporate Bond Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Corporate Bonds* | $ | — | $ | 58,130,412 | $ | — | $ | 58,130,412 | ||||||||
Total Investments | $ | — | $ | 58,130,412 | $ | — | $ | 58,130,412 |
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Notes to the Financial Statements (cont.)
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | ||||||||||||||||
Investments | ||||||||||||||||
Corporate Bonds* | $ | — | $ | 27,291,926 | $ | — | $ | 27,291,926 | ||||||||
Total Investments | $ | — | $ | 27,291,926 | $ | — | $ | 27,291,926 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Ready Access Variable Income Fund | ||||||||||||||||
Investments | ||||||||||||||||
Asset-Backed Securities | $ | — | $ | 5,200,003 | $ | — | $ | 5,200,003 | ||||||||
Collateralized Mortgage Obligations | — | 1,501,491 | — | 1,501,491 | ||||||||||||
Corporate Bonds* | — | 121,428,889 | — | 121,428,889 | ||||||||||||
Foreign Government Securities | — | 2,015,209 | — | 2,015,209 | ||||||||||||
Short-Term Investments | — | 5,587,211 | — | 5,587,211 | ||||||||||||
Total Investments | $ | — | $ | 135,732,803 | $ | — | $ | 135,732,803 | ||||||||
Level 1 — Quoted Prices | Level 2 — Other Significant Observable Inputs | Level 3 — Significant Unobservable Inputs | Total | |||||||||||||
FlexShares Core Select Bond Fund | ||||||||||||||||
Investments | ||||||||||||||||
Exchange Traded Funds | $ | 22,244,245 | $ | — | $ | — | $ | 22,244,245 | ||||||||
Short-Term Investments | — | 64,750 | — | 64,750 | ||||||||||||
Total Investments | $ | 22,244,245 | $ | 64,750 | $ | — | $ | 22,308,995 |
* | See Schedules of Investments for segregation by industry type. |
† | Purchases include all purchases of securities and securities received in corporate actions. |
†† | Sales include all sales of securities, maturities, paydowns and securities tendered in corporate actions. |
a | During the period ended April 30, 2018, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund changed classification of securities with an aggregated market value of $264,909 or 0.02% of the Fund’s net assets from Level 1 to Level 2 due to securities being valued with other observable inputs. |
b | During the period ended April 30, 2018, the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund changed classification of securities with an aggregated market value of $1,175,024 or 0.16% of the Fund’s net assets from Level 2 to Level 1 due to securities being valued at unadjusted quoted market prices. |
c | During the period ended April 30, 2018, the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund changed classification of securities with an aggregated market value of $35,176,866 or 4.90% of the Fund’s net assets from Level 1 to Level 2 due to securities being valued with other observable inputs. |
d | During the period ended April 30, 2018, the FlexShares International Quality Dividend Index Fund changed classification of security with a market value of $6,148,308 or 0.56% of the Fund’s net assets from Level 1 to Level 2 due to security being valued with other observable inputs. |
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Notes to the Financial Statements (cont.)
e | During the period ended April 30, 2018, the FlexShares International Quality Dividend Defensive Index Fund changed classification of security with a market value of $610,365 or 0.60% of the Fund’s net assets from Level 1 to Level 2 due to security being valued with other observable inputs. |
f | During the period ended April 30, 2018, the FlexShares International Quality Dividend Dynamic Index Fund changed classification of security with a market value of $307,663 or 0.35% of the Fund’s net assets from Level 1 to Level 2 due to security being valued with other observable inputs. |
1 | The significant unobservable input that can be used in the fair value measurement is Estimated Recovery Value. Significant increases (decreases) in estimated recovery value would result in a significantly higher (lower) fair value measurement. |
2 | The significant unobservable inputs that can be used in the fair value measurement are; Discount Rate and Projected Cash Flows. Significant increases (decreases) in Discount Rates in isolation would result in a significantly lower (higher) fair value measurement while an increase (decrease) in Projected Cash Flow in isolation would result in a significantly higher (lower) fair value measurement. |
Foreign Securities
The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund (through its investment in its Underlying Fund), FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund (through its investment in its Underlying Fund), FlexShares STOXX® Global ESG Impact Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund (through its investment in its Underlying Funds), FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund invest in publicly-traded equity securities of issuers in countries other than the United States of America (“U.S.”). Such investments include direct investments in non-U.S. dollar denominated securities traded outside the U.S. The Funds’ investments in foreign securities also may be in the form of ADRs and Global Depositary Receipts (“GDRs”) (collectively, “Depositary Receipts”) based on securities in their Underlying Indexes. ADRs are receipts that are traded in the United States evidencing ownership of the underlying foreign securities and are denominated in U.S. dollars. GDRs are receipts issued by a non-U.S. financial institution evidencing ownership of underlying foreign or U.S. securities and usually are denominated in foreign currencies. GDRs may not be denominated in the same currency as the securities they represent. Generally, GDRs are designed for use in foreign securities markets.
To the extent a Fund invests in ADRs, such ADRs will be listed on a national securities exchange. To the extent a Fund invests in GDRs, such GDRs will be listed on a foreign exchange. A Fund will not invest in any unlisted Depositary Receipt, any Depositary Receipt that NTI deems to be illiquid or any Depositary Receipt for which market quotations are not readily available. Generally, all Depositary Receipts must be sponsored.
The FlexShares Credit-Scored US Corporate Bond Index Fund and FlexShares Credit-Scored US Long Corporate Bond Index Fund may invest in U.S. dollar denominated bonds of non-U.S. corporations to the extent such bonds are included in each Fund’s underlying index. The FlexShares Core Select Bond Fund may invest in U.S. dollar denominated bonds of non-U.S. corporations, either directly or indirectly through Underlying Funds, to achieve its investment objective.
The FlexShares Ready Access Variable Income Fund may invest, without limitation, in fixed-income securities and instruments of foreign issuers in developed and emerging markets, including debt securities of foreign governments.
Investing in foreign securities, including Depositary Receipts, may result in a Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in U.S. securities, due to less liquid markets, and adverse economic, political, diplomatic, financial, and regulatory factors. Foreign governments also may impose taxes and limits on investment and repatriation. Any of these events could cause the value of a Fund’s foreign investment to decline.
The FlexShares Morningstar Emerging Markets Factor Tilt Index Fund and the FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund (through its investment in
306 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
its Underlying Fund) will invest primarily in emerging market countries. In addition, the FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund (through its investment in its Underlying Funds), FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund may invest its assets in emerging market countries. The FlexShares Ready Access Variable Income Fund may invest up to 20% of its total assets in fixed-income securities and instruments of issuers in emerging markets. The markets of emerging market countries are less developed and less liquid, subject to greater price volatility and generally subject to increased economic, political, regulatory and other uncertainties than more developed foreign markets. The risks of foreign investment are increased when the issuer is located in a country with an emerging economy or securities market.
Inflation-Indexed Securities
The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund invest primarily in U.S. Treasury Inflation-Protected Securities (“TIPS”). The FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund may invest in inflation-indexed securities.
TIPS issued by the U.S. Treasury have varying maturities and pay interest on a semiannual basis equal to a fixed percentage of the inflation-adjusted principal amount. If the periodic adjustment rate measuring inflation falls, the principal value of TIPS will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of TIPS, even during a period of deflation.
The value of TIPS is expected to change in response to changes in real interest rates. Real interest rates in turn are tied to the relationship between nominal interest rates and
the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of TIPS. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of TIPS. Any increase in the principal amount of TIPS will be considered taxable ordinary income, even though investors do not receive their principal until maturity.
While these securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation, investors in these securities may not be protected to the extent that the increase is not reflected in the TIPS’ inflation measure.
The periodic adjustment of TIPS is tied to the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. There can be no assurance that the CPI-U will accurately measure the real rate of inflation in the prices of goods and services.
Mortgage-Backed Pass-Through Securities
The FlexShares Disciplined Duration MBS Index Fund invests primarily in U.S. agency mortgage-backed pass-through securities (“MBS”), a category of pass-through securities backed by pools of mortgages and issued by one of the following U.S. government agencies: the Federal National Mortgage Association (FNMA or Fannie Mae), the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) or the Government National Mortgage Association (GNMA or Ginnie Mae) (each a “US Agency”). Under normal circumstances, the Fund will invest at least 80% of its total assets in the securities of its Underlying Index and in “to-be announced transactions” (“TBA transactions”) that represent securities in its Underlying Index. In a TBA transaction, the buyer and seller agree upon general trade parameters such as agency, coupon rate, settlement date, par amount and price. The actual pools delivered generally are determined two days prior to settlement.
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Notes to the Financial Statements (cont.)
Pending settlement of such TBA contracts, the FlexShares Disciplined Duration MBS Index Fund will invest in liquid, short-term instruments. The FlexShares Core Select Bond Fund may also invest either directly or through its Underlying Funds in MBS, including TBA transactions.
Mortgage Dollar Rolls
The FlexShares Disciplined Duration MBS Index Fund and the FlexShares Core Select Bond Fund (directly or through its Underlying Funds) may enter into mortgage dollar roll transactions. A mortgage dollar roll involves the sale by the Fund of securities for delivery in the future (generally within 30 days). The Fund simultaneously contracts with the same counterparty to repurchase substantially similar (same type, coupon and maturity) but not identical securities on a specified future date. During the roll period, the Fund will not be entitled to accrue interest and receive principal payments on the securities sold. However, the Fund benefits to the extent of any difference between (a) the price received for the securities sold and (b) the lower forward price for the future purchase and/or fee income plus the interest earned on the cash proceeds of the securities sold. Successful use of mortgage dollar rolls depends upon the Investment Adviser’s ability to predict correctly interest rates and mortgage prepayments.
For financial reporting and tax purposes, a Fund treats mortgage dollar rolls as two separate transactions: one involving the purchase of a security and a separate transaction involving a sale. The Fund currently does not intend to enter into mortgage dollar rolls that are accounted for as financing and does not treat them as borrowings.
Repurchase Agreements
To the extent consistent with its investment policies, each Fund may enter into repurchase agreements under which it purchases securities (collateral) for cash from a seller and agrees to resell those securities to the same seller within a specified time at a specified price. During the term of a repurchase agreement, the market value of the underlying collateral, including accrued interest, is required to equal or exceed the market value of the repurchase agreement. The underlying collateral for tri-party repurchase agreements is
held in accounts for JP Morgan Chase, the Fund’s custodian, and is not reflected in the assets of the Portfolios, at the Bank of New York or JPMorgan Chase which, in turn, holds securities through the book-entry system at the Federal Reserve Bank of New York. The Fund is subject to credit risk on repurchase agreements to the extent that the counterparty fails to perform under the agreement and the value of the collateral received falls below the agreed repurchase price.
The Northern Trust Company, the parent of NTI, currently is a party to various Master Repurchase Agreements with a number of different counterparties, and acts as agent on behalf of various disclosed principals, including the Funds and various other accounts managed by NTI, in entering into repurchase agreements under the Master Repurchase Agreements. NTI administers and manages these repurchase agreements in accordance with and as part of its duties under its investment advisory agreement with the Funds and does not collect any additional fees from the Funds for such services. During the period ended April 30, 2018, the FlexShares Ready Access Variable Income Fund had entered into repurchase agreements. As of April 30, 2018, the Fund had no repurchase agreements outstanding.
As of the period ended April 30, 2018 the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Dividend Dynamic Index Fund invested cash collateral for loans of portfolio securities in repurchase agreements, as reflected in the respective Schedule of Investments under the caption “Securities Lending Reinvestments.”
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Notes to the Financial Statements (cont.)
Securities Lending
Each Fund may lend securities to banks, brokers and dealers or other qualified institutions. In exchange, the Fund is required to receive minimum initial collateral value as follows:
Type of Loan | Minimum Initial Collateral Requirement | |||
U.S. dollar denominated securities secured by U.S. dollar denominated government securities or cash collateral | 102 | % | ||
U.S. dollar denominated securities secured by non-U.S. dollar denominated government securities or cash collateral | 105 | % | ||
Non-U.S. dollar denominated securities secured by government securities or cash collateral in the same denomination as the lent securities | 102 | % | ||
Non-U.S. dollar denominated securities secured by government securities or cash collateral in the different denomination from the lent securities | 105 | % | ||
U.S. dollar and Non-U.S. dollar denominated securities secured by equity securities collateral | 105 | % |
The collateral is maintained thereafter, at a value equal to at least 100% of the value of the securities loaned. The collateral amount is valued at the beginning of each business day and is compared to the market value of the loaned securities from the prior business day to determine if additional collateral is required. If additional collateral is required, a request is sent to the borrower.
Securities lending may represent no more than one-third of the value of a Fund’s total assets (including the loan collateral). JPMorgan Chase Bank, N.A. (the “Securities Lending Agent”) serves as the securities lending agent for the securities lending program of a Fund.
Collateral for loans of portfolio securities made by a Fund may consist of cash, cash equivalents, securities issued or guaranteed by the U.S. government or foreign governments or its agencies (or any combination thereof). Any cash collateral received by the Fund in connection with these
loans may be invested in a variety of short-term investments, either directly or indirectly through money market portfolios. The market value of securities on loan, and the value of investments made with cash collateral received are disclosed in the Schedule of Investments. Securities lending income includes income from the securities lending program recorded when earned from the Securities Lending Agent and any fees charged to borrowers less expenses associated with the loan. The net amount is reflected in the Statement of Operations under “Securities lending income (net of fees).”
When a Fund lends its securities, it will continue to receive payments equal to the dividends and interest paid on the securities loaned and simultaneously may earn interest on the investment of the cash collateral.
A Fund will have the right to terminate a loan at any time and recall the loaned securities within the normal and customary settlement time for securities transactions. A Fund does not have the right to vote securities on loan, but can terminate the loan and regain the right to vote if a material event affecting the securities occurred. A borrower might become insolvent or refuse to honor its obligation to return the securities. In the event of a default by a borrower with respect to any loan, the Securities Lending Agent will exercise any and all remedies provided under the applicable borrower agreement. These remedies include purchasing replacement securities for the Fund by applying the collateral held from the defaulting borrower against the purchase cost of the replacement securities. If the proceeds from the collateral are less than the purchase cost of the replacement securities, the Securities Lending Agent is responsible for such shortfall, subject to certain limitations that are set forth in detail in the Securities Lending Agency Agreement. In this event, a Fund could experience delays in recovering its securities and possibly may incur a capital loss. Each Fund will be responsible for any loss that might result from its investment of the cash collateral it receives from a borrower.
In accordance with guidance presented in FASB Accounting Standard Update (“ASU”) 2014-11, Transfers and Servicing (Topic 860): Repurchase to-Maturity Transactions, Repurchase Financings, and Disclosures, liabilities under the
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outstanding securities lending transactions as of April 30, 2018, which were comprised of cash, were as follow:
Fund | ||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 114,036,329 | ||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 16,242,330 | |||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 1,262,450 | |||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 88,775,678 | |||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 37,862,060 | |||
FlexShares Global Quality Real Estate Index Fund | 3,720,119 | |||
FlexShares Quality Dividend Index Fund | 147,126,807 | |||
FlexShares Quality Dividend Defensive Index Fund | 21,633,902 | |||
FlexShares Quality Dividend Dynamic Index Fund | 2,377,799 | |||
FlexShares International Quality Dividend Index Fund | 16,031,797 | |||
FlexShares International Quality Dividend Defensive Index Fund | 282,898 | |||
FlexShares International Quality Dividend Dynamic Index Fund | 96,318 |
At April 30, 2018, the Securities Lending Agency Agreement does not permit the Fund to enforce a netting arrangement.
Derivative Contracts
Futures Contracts
All of the Index Funds may invest in futures contracts to help track the price and yield performance of their underlying indexes. At the time a Fund enters into a futures contract, it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Subsequent payments to be made or received by the Funds equal to the change in contract value are recorded as variation margin payable or receivable and offset in unrealized gains or losses. Futures are marked to market each day with the
change in value reflected in the unrealized gains or losses. A Fund recognizes a realized gain or loss when a contract is closed or expires. The Statements of Operations reflect unrealized gains or losses on open futures contracts, as “Net change in unrealized appreciation (depreciation) on futures contracts”, and any realized gains (losses) on closed futures contracts as “Net realized gain (loss) on futures contracts”.
The FlexShares Core Select Bond Fund may take long or short positions in futures to manage the Fund’s exposure to interest rate risk. The Fund seeks to mitigate the potential impact of interest rates on the performance of bonds by entering into short positions in U.S. Treasury futures or transactions in interest rate swaps. The Fund’s short positions in U.S. Treasury futures and interest rate swaps are not intended to mitigate credit spread risk or other factors influencing the price of bonds, which may have a greater impact than interest rates. In addition, when interest rates fall, long-only bond investments will perform better than the Fund’s investments.
As of April 30, 2018, the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares STOXX® US ESG Impact Index Fund, FlexShares STOXX® Global ESG Impact Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index had open futures contracts.
The use of futures contracts involves, to varying degrees, elements of market and counterparty risk, which may exceed the amounts recognized in the Statements of Assets and Liabilities. Futures contracts present the following risks: imperfect correlation between the change in market value of
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Notes to the Financial Statements (cont.)
a Fund’s securities and the price of futures contracts; the possible inability to close a futures contract when desired; losses due to unanticipated market movements, which potentially are unlimited; and the possible inability of NTI to correctly predict the direction of securities prices, interest rates, currency exchange rates and other economic factors. Futures markets are highly volatile and the use of futures may increase the volatility of a Fund’s NAV. As a result of the low margin deposits normally required in futures trading, a relatively small price movement in a futures contract may result in substantial losses to a Fund. Futures contracts may be illiquid, and exchanges may limit fluctuations in futures contract prices during a single day. Foreign exchanges or boards of trade generally do not offer the same protection as U.S. exchanges.
Foreign Currency Translations
Values of investments denominated in foreign currencies are converted into U.S. dollars using the prevailing market rates on the date of valuation as quoted by one or more banks or dealers that make a two-way market in such currencies (or a data service provider based on quotations received from such banks or dealers). Any use of a rate different from the rates used by an Index Fund’s index provider may affect a Fund’s ability to track its Underlying Index. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received, and the portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in “Net realized gain (loss) on investment in securities” on the Statements of Operations. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currencies” on the Statements of Operations.
Forward Foreign Currency Exchange Contracts
The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund and FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund expect to use forward foreign currency contracts to hedge the currency exposure resulting from investments in foreign securities, to facilitate local settlements or to protect against currency exposure in connection with their distributions to shareholders. The FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares STOXX® Global ESG Impact Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, and the FlexShares Ready Access Variable Income Fund may enter into forward foreign currency exchange contracts to facilitate local settlements or to protect against currency exposure in connection with its distributions to shareholders. The Index Funds, however, do not expect to engage in currency transactions for speculative purposes (e.g., for potential income or capital gain). The FlexShares Ready Access Variable Income Fund also may engage in forward foreign currency transactions for hedging purposes in order to protect against uncertainty in the level of future foreign currency exchange rates. The Fund, however, does not expect to engage in currency transactions for speculative purposes. All forward foreign currency exchange contracts held are “marked-to-market” daily at the applicable exchange rates and any resulting unrealized gains or losses are recorded. The Funds record realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction or extinguished by delivery of the currency. The difference between the future foreign currency exchange rates at the date of entry into the contract and the rates at the reporting date are included in “Net change in unrealized appreciation (depreciation) on forward foreign currency contracts” in the Statement of Operations. Non-deliverable forward foreign currency
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exchange contracts are settled with the counterparty in U.S. Dollars without the delivery of foreign currency.
There are several risks associated with these contracts. One risk is the potential inability of counterparties to meet the terms of their contracts, and unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The Statements of Operations reflect (i) realized gains or losses, if any, in “Net realized gain (loss) from settlement of forward foreign currency contracts” and (ii) unrealized gains or losses in “Net change in unrealized appreciation (depreciation) on forward foreign currency contracts”. Forward foreign currency exchange contracts are privately negotiated transactions and can have substantial price volatility. As a result, they offer less protection against default by the other party than is available for instruments traded on an exchange. The institutions that deal in forward foreign currency exchange contracts are not required to continue to make markets in the currencies they trade, and these markets can experience periods of illiquidity.
As of April 30, 2018, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares International Quality Dividend Index Fund, and the FlexShares International Quality Dividend Defensive Index Fund had open forward foreign currency contracts.
Offsetting of Financial Assets and Derivative Assets
The Funds’ accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement or similar agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statements of Assets and Liabilities across transactions between the Fund and the applicable counterparty. In the event of a default, the agreement provides the right for the non-defaulting party to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral. The Funds’ right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject.
For financial reporting purposes, the Trust can offset financial assets and financial liabilities of the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares International Quality Dividend Index Fund, and the FlexShares International Quality Dividend Defensive Index Fund that are subject to master netting arrangements or similar agreements in the Statements of Assets and Liabilities. The following table presents the gross and net amounts of these assets and liabilities:
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Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Assets presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Bank of New York | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Citibank NA | 9,403 | (9,403 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 9,542 | — | — | 9,542 | ||||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 127,732 | (66,698 | ) | — | 61,034 | |||||||||||||
Total | $ | 146,677 | $ | (76,101 | ) | $ | — | $ | 70,576 | |||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | Foreign Currency Contracts — Citibank NA | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 49,728 | (17,594 | ) | — | 32,134 | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 6,705 | — | — | 6,705 | ||||||||||||||
Total | $ | 56,433 | $ | (17,594 | ) | $ | — | $ | 38,839 | |||||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index | Foreign Currency Contracts — Toronto-Dominion Bank (The) | $ | 144,961 | $ | — | $ | — | $ | 144,961 | |||||||||
Total | $ | 144,961 | $ | — | $ | — | $ | 144,961 | ||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — BNP Paribas SA | 8,246 | (4,005 | ) | — | 4,241 | |||||||||||||
Foreign Currency Contracts — Citibank NA | 100,297 | (1,674 | ) | — | 98,623 | |||||||||||||
Foreign Currency Contracts — Credit Suisse International | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 84,962 | (38,006 | ) | (46,956 | ) | — | ||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | 13,803 | (842 | ) | 12,961 | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | 10,784 | (244 | ) | — | 10,540 | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 3,438 | — | — | 3,438 | ||||||||||||||
Total | $ | 221,530 | $ | (44,771 | ) | $ | (46,956 | ) | $ | 129,803 | ||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | Foreign Currency Contracts — Bank of New York | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — BNP Paribas SA | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Citibank NA | 108,226 | (108,226 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 289,926 | (142,317 | ) | — | 147,609 | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 65,375 | (31,651 | ) | — | 33,724 | |||||||||||||
Foreign Currency Contracts — Societe Generale | 48,137 | (40,537 | ) | — | 7,600 | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 254,260 | (254,260 | ) | — | — | |||||||||||||
Total | $ | 765,924 | $ | (576,991 | ) | $ | — | $ | 188,933 | |||||||||
FlexShares® STOXX® Global Infrastructure Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Citibank NA | 2,324 | (2,324 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | 2,838 | — | — | 2,838 | ||||||||||||||
Foreign Currency Contracts — Societe Generale | 6,180 | — | — | 6,180 | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 31,266 | (3,425 | ) | — | 27,841 | |||||||||||||
Total | $ | 42,608 | $ | (5,749 | ) | $ | — | $ | 36,859 |
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Notes to the Financial Statements (cont.)
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Assets presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
FlexShares Global Quality Real Estate Index Fund | Foreign Currency Contracts — Citibank NA | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 12,297 | — | — | 12,297 | ||||||||||||||
Total | $ | 12,297 | $ | — | $ | — | $ | 12,297 | ||||||||||
FlexShares International Quality Dividend Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Citibank NA | 25,027 | (25,027 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | 7,183 | (7,183 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | 18,924 | (18,924 | ) | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | 67,572 | (4,552 | ) | — | 63,020 | |||||||||||||
Total | $ | 118,706 | $ | (55,686 | ) | $ | — | $ | 63,020 | |||||||||
FlexShares International Quality Dividend Defensive Index Fund | Foreign Currency Contracts — Citibank NA | $ | 2,947 | $ | — | $ | — | $ | 2,947 | |||||||||
Foreign Currency Contracts — Goldman Sachs & Co | 1,937 | — | — | 1,937 | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | — | — | — | — | ||||||||||||||
Total | $ | 4,884 | $ | — | $ | — | $ | 4,884 | ||||||||||
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Liabilities presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | (157 | ) | $ | — | $ | — | $ | (157 | ) | |||||||
Foreign Currency Contracts — Bank of New York | (7,065 | ) | — | — | (7,065 | ) | ||||||||||||
Foreign Currency Contracts — Citibank NA | (178,339 | ) | 9,403 | (168,936 | ) | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Societe Generale | (9,090 | ) | — | — | (9,090 | ) | ||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (66,698 | ) | 66,698 | — | — | |||||||||||||
Total | $ | (261,349 | ) | $ | 76,101 | $ | — | $ | (185,248 | ) | ||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | Foreign Currency Contracts — Citibank NA | $ | (323 | ) | $ | — | $ | — | $ | (323 | ) | |||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (17,594 | ) | 17,594 | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | — | — | — | — | ||||||||||||||
Total | $ | (17,917 | ) | $ | 17,594 | $ | — | $ | (323 | ) | ||||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index | Foreign Currency Contracts — Toronto-Dominion Bank (The) | $ | — | $ | — | $ | — | $ | — | |||||||||
Total | $ | — | $ | — | $ | — | $ | — |
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Notes to the Financial Statements (cont.)
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Liabilities presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | (25 | ) | $ | — | $ | — | $ | (25 | ) | |||||||
Foreign Currency Contracts — BNP Paribas SA | (4,005 | ) | 4,005 | — | — | |||||||||||||
Foreign Currency Contracts — Citibank NA | (1,674 | ) | 1,674 | — | — | |||||||||||||
Foreign Currency Contracts — Credit Suisse International | (51 | ) | — | — | (51 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (38,006 | ) | 38,006 | — | — | |||||||||||||
Foreign Currency Contracts — JPMorgan Chase Bank | (842 | ) | 842 | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | (244 | ) | 244 | — | ||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | — | — | — | — | ||||||||||||||
Total | $ | (44,847 | ) | $ | 44,771 | $ | — | $ | (76 | ) | ||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | Foreign Currency Contracts — Bank of New York | $ | (151,925 | ) | $ | — | $ | — | $ | (151,925 | ) | |||||||
Foreign Currency Contracts — BNP Paribas SA | (110,544 | ) | — | — | (110,544 | ) | ||||||||||||
Foreign Currency Contracts — Citibank NA | (258,936 | ) | 108,226 | — | (150,710 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (142,317 | ) | 142,317 | — | — | |||||||||||||
Foreign Currency Contracts — Morgan Stanley | (31,651 | ) | 31,651 | — | — | |||||||||||||
Foreign Currency Contracts — Societe Generale | (40,537 | ) | 40,537 | — | — | |||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (279,544 | ) | 254,260 | — | (25,284 | ) | ||||||||||||
Total | $ | (1,015,454 | ) | $ | 576,991 | $ | — | $ | (438,463 | ) | ||||||||
FlexShares® STOXX® Global Infrastructure Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | (3,029 | ) | $ | — | $ | — | $ | (3,029 | ) | |||||||
Foreign Currency Contracts — Citibank NA | (38,401 | ) | 2,324 | — | (36,077 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (4,514 | ) | — | — | (4,514 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Societe Generale | — | — | — | |||||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (3,425 | ) | 3,425 | — | — | |||||||||||||
Total | $ | (49,369 | ) | $ | 5,749 | $ | — | $ | (43,620 | ) | ||||||||
FlexShares Global Quality Real Estate Index Fund | Foreign Currency Contracts — Citibank NA | $ | (4,561 | ) | $ | — | $ | — | $ | (4,561 | ) | |||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | — | — | — | — | ||||||||||||||
Total | $ | (4,561 | ) | $ | — | $ | — | $ | (4,561 | ) | ||||||||
FlexShares International Quality Dividend Index Fund | Foreign Currency Contracts — Bank of Montreal | $ | (9,378 | ) | $ | — | $ | — | $ | (9,378 | ) | |||||||
Foreign Currency Contracts — Citibank NA | (105,697 | ) | 25,027 | — | (80,670 | ) | ||||||||||||
Foreign Currency Contracts — Goldman Sachs & Co. | (13,479 | ) | 7,183 | — | (6,296 | ) | ||||||||||||
Foreign Currency Contracts — Morgan Stanley | (19,718 | ) | 18,924 | — | (794 | ) | ||||||||||||
Foreign Currency Contracts — Societe Generale | (41,287 | ) | — | — | (41,287 | ) | ||||||||||||
Foreign Currency Contracts — Toronto-Dominion Bank (The) | (4,552 | ) | 4,552 | — | — | |||||||||||||
Total | $ | (194,111 | ) | $ | 55,686 | $ | — | $ | (138,425 | ) |
FLEXSHARES SEMIANNUAL REPORT | 315 |
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Notes to the Financial Statements (cont.)
Gross Amounts Not Offset in��the Statement of Assets and Liabilities | ||||||||||||||||||
Gross Amounts of Liabilities presented in Statements of Assets and Liabilities | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||
FlexShares International Quality Dividend Defensive Index Fund | Foreign Currency Contracts — Citibank NA | $ | — | $ | — | $ | — | $ | — | |||||||||
Foreign Currency Contracts — Goldman Sachs & Co | — | — | — | — | ||||||||||||||
Foreign Currency Contracts — Morgan Stanley | (303 | ) | — | — | (303 | ) | ||||||||||||
Total | $ | (303 | ) | $ | — | $ | — | $ | (303 | ) |
The following tables indicate the location of derivative-related items on the Statements of Assets and Liabilities as well as the effect of derivative instruments on the Statements of Operations during the reporting period.
Fair Value of Derivative Instruments as of April 30, 2018
Derivatives by risk type | Statements of Assets and Liabilities Location | Fund | Value | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Morningstar US Market Factor Tilt Index Fund | $ | (198,685 | ) | |||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 829,978 | |||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 146,677 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | (261,349 | ) | ||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | (158,236 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 56,433 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | (17,917 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 144,961 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | (9,678 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 221,530 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | (44,847 | ) | ||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares US Quality Large Cap Index Fund | (4,867 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares STOXX® US ESG Impact Index Fund | 1,013 |
316 | FLEXSHARES SEMIANNUAL REPORT |
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Derivatives by risk type | Statements of Assets and Liabilities Location | Fund | Value | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares STOXX® US ESG Impact Index Fund | $ | (4,097 | ) | |||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares STOXX® Global ESG Impact Index Fund | 2,687 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares STOXX® Global ESG Impact Index Fund | (10,940 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Morningstar Global Upstream Natural Resources Index Fund | 820,836 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Morningstar Global Upstream Natural Resources Index Fund | (237,564 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | 765,924 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | (1,015,454 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares STOXX® Global Broad Infrastructure Index Fund | 123,579 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares STOXX® Global Broad Infrastructure Index Fund | (26,842 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | 42,608 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | (49,369 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares Global Quality Real Estate Index Fund | 99,738 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Global Quality Real Estate Index Fund | (84,080 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares Global Quality Real Estate Index Fund | 12,297 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares Global Quality Real Estate Index Fund | (4,561 | ) | ||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Quality Dividend Index Fund | (689,288 | ) | ||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Quality Dividend Defensive Index Fund | (53,352 | ) | ||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares Quality Dividend Dynamic Index Fund | (13,330 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Index Fund | 629,289 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares International Quality Dividend Index Fund | (123,829 | ) |
FLEXSHARES SEMIANNUAL REPORT | 317 |
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Derivatives by risk type | Statements of Assets and Liabilities Location | Fund | Value | |||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares International Quality Dividend Index Fund | $ | 118,706 | ||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares International Quality Dividend Index Fund | (194,111 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Defensive Index Fund | 6,870 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares International Quality Dividend Defensive Index Fund | (29,693 | ) | ||||
Foreign Currency Contracts | Assets — Unrealized appreciation on forward foreign currency contracts | FlexShares International Quality Dividend Defensive Index Fund | 4,884 | |||||
Foreign Currency Contracts | Liabilities — Unrealized depreciation on forward foreign currency contracts | FlexShares International Quality Dividend Defensive Index Fund | (303 | ) | ||||
Equity Index Futures Contracts | Assets — Unrealized appreciation on futures contracts* | FlexShares International Quality Dividend Dynamic Index Fund | 6,305 | |||||
Equity Index Futures Contracts | Liabilities — Unrealized depreciation on futures contracts* | FlexShares International Quality Dividend Dynamic Index Fund | (6,717 | ) |
* | Includes cumulative appreciation/depreciation on futures contracts as reported in the Schedule of Investments. Current day’s variation margin is reported within the Statement of Assets and Liabilities for futures contracts. |
The Effect of Derivative Instruments on the Statements of Operations for the Period Ended April 30, 2018
Derivatives by risk type | Location of Gain or (Loss) on Derivatives on the Statements of Operations | Fund | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) on Derivatives | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 1,214,154 | $ | (592,718 | ) | |||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 420,974 | 76,151 | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 6,342 | 66,520 | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 195,369 | (273,083 | ) |
318 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
Derivatives by risk type | Location of Gain or (Loss) on Derivatives on the Statements of Operations | Fund | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) on Derivatives | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | $ | (2,286 | ) | $ | 26,217 | |||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 1,377 | — | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | (412,797 | ) | 4,811 | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 7,081 | (9,678 | ) | |||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | (636,957 | ) | 79,759 | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares US Quality Large Cap Index Fund | 8,740 | (4,867 | ) | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares STOXX® US ESG Impact Index Fund | 5,518 | (3,729 | ) | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares STOXX® Global ESG Impact Index Fund | 20,462 | (16,918 | ) |
FLEXSHARES SEMIANNUAL REPORT | 319 |
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Derivatives by risk type | Location of Gain or (Loss) on Derivatives on the Statements of Operations | Fund | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) on Derivatives | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | $ | 2,071,000 | $ | (1,113,957 | ) | |||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Morningstar Global Upstream Natural Resources Index Fund | 70,280 | (208,117 | ) | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | 400,407 | (201,938 | ) | |||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares STOXX® Global Broad Infrastructure Index Fund | (15,708 | ) | 26,787 | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Global Quality Real Estate Index Fund | 494,051 | (224,086 | ) | |||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares Global Quality Real Estate Index Fund | (16,304 | ) | 4,822 | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Quality Dividend Index Fund | 2,201,398 | (1,626,306 | ) | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Quality Dividend Defensive Index Fund | 164,702 | (116,391 | ) |
320 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
Derivatives by risk type | Location of Gain or (Loss) on Derivatives on the Statements of Operations | Fund | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) on Derivatives | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Quality Dividend Dynamic Index Fund | $ | 48,052 | $ | (31,356 | ) | |||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares International Quality Dividend Index Fund | 264,754 | 145,190 | ||||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares International Quality Dividend Index Fund | 63,116 | (72,184 | ) | |||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares International Quality Dividend Defensive Index Fund | 56,407 | (56,771 | ) | |||||||
Foreign Currency Contracts | Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts | FlexShares International Quality Dividend Defensive Index Fund | 2,969 | 420 | ||||||||
Equity Index Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares International Quality Dividend Dynamic Index Fund | 51,730 | (22,975 | ) | |||||||
Interest Rate Futures Contracts | Net realized gain (loss) on Futures contracts, Net change in unrealized appreciation (depreciation) on Futures contracts | FlexShares Core Select Bond Fund | 25,226 | (4,571 | ) |
FLEXSHARES SEMIANNUAL REPORT | 321 |
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At April 30, 2018, the volume of derivative activities, which represents activities throughout the period, was as follows:
Foreign Exchange Contracts | Equity Contracts | |||||||||||||||||||||||
Fund | Number of Trades | Average Notional Amount | Number of Trades Long | Average Notional Balance Long | Number of Trades Short | Average Notional Balance Short | ||||||||||||||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | — | $ | — | 450 | $ | 118,746 | — | $ | — | |||||||||||||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 77 | 878,023 | 722 | 74,543 | — | — | ||||||||||||||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 64 | 304,503 | 318 | 58,114 | — | — | ||||||||||||||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 234 | 875,932 | 2 | 101,472 | — | — | ||||||||||||||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 410 | 1,780,304 | 21 | 57,542 | — | — | ||||||||||||||||||
FlexShares US Quality Large Cap Index Fund | — | — | 7 | 133,371 | — | — | ||||||||||||||||||
FlexShares STOXX® US ESG Impact Index Fund | — | — | 5 | 111,686 | — | — | ||||||||||||||||||
FlexShares STOXX® Global ESG Impact Index Fund | — | — | 38 | 100,167 | — | — | ||||||||||||||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 153 | 1,149,615 | 1,543 | 120,344 | — | — | ||||||||||||||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 46 | 271,172 | 247 | 100,034 | — | — | ||||||||||||||||||
FlexShares Global Quality Real Estate Index Fund | 19 | 348,717 | 150 | 113,992 | — | — | ||||||||||||||||||
FlexShares Quality Dividend Index Fund | — | — | 594 | 134,247 | — | — | ||||||||||||||||||
FlexShares Quality Dividend Defensive Index Fund | — | — | 58 | 134,824 | — | — | ||||||||||||||||||
FlexShares Quality Dividend Dynamic Index Fund | — | — | 15 | 134,345 | — | — | ||||||||||||||||||
FlexShares International Quality Dividend Index Fund | 131 | 515,166 | 813 | 71,329 | — | — | ||||||||||||||||||
FlexShares International Quality Dividend Defensive Index Fund | 16 | 37,425 | 95 | 89,383 | — | — | ||||||||||||||||||
FlexShares International Quality Dividend Dynamic Index Fund | — | — | 57 | 85,258 | — | — | ||||||||||||||||||
FlexShares Core Select Bond Fund | — | — | 5 | 157,538 | 27 | 121,273 |
322 | FLEXSHARES SEMIANNUAL REPORT |
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Notes to the Financial Statements (cont.)
Taxes and Distributions
Each Fund has qualified and intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net capital gains to shareholders. Accordingly, no provision for federal and state income taxes is required in the financial statements.
As of April 30, 2018, management of the Funds has reviewed all open tax years and major jurisdictions and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. On an ongoing basis management will monitor the tax positions taken to determine if adjustment to conclusions are necessary based on factors including but not limited to further implementation on guidance expected from FASB and on-going analysis of tax law, regulation, and interpretations thereof.
3. Investment Transactions and Related Income and Expense
Throughout the reporting period, investment transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, investment transactions are accounted for on the trade date on the last business day of the reporting period.
Interest income is recognized on an accrual basis. Bond discount is accreted and premium is amortized over the expected life of each applicable security using the yield to maturity method. Dividend income is recorded on the ex-dividend date, or as soon as information is available. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds.
Each Fund except the FlexShares iBoxx 3-Year Target Duration TIPs Index Fund and the FlexShares iBoxx 5-Year Target
Duration TIPs Index Fund may hold the securities of real estate investment trusts (“REITs”). Distributions from such investments may be comprised of return of capital, capital gains and income. The actual character of amounts received during the year is not known until after the REIT’s fiscal year end. The Fund records the character of distributions received from REITs during the year based on estimates available. The characterization of distributions received by the Fund may be subsequently revised based on information received from the REITs after their tax reporting periods concluded.
All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which a Fund invests. These foreign taxes, if any, are paid by the Funds and disclosed in the Statements of Operations. Foreign taxes payable, if any, are reflected in the Funds’ Statements of Assets and Liabilities.
Expenses directly attributable to a Fund are charged to that Fund, while expenses which are attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or another reasonable basis.
4. Investment Advisory Fees
NTI serves as the Investment Adviser of the Funds pursuant to the Investment Advisory Agreement. The Investment Adviser is responsible for making investment decisions for the Funds and for placing purchase and sale orders for portfolio securities, subject to the general supervision of the Trust’s Board.
As compensation for its advisory services and assumption of Fund expenses, NTI is entitled to a unitary management fee, computed daily and payable monthly, at the annual rates set forth in the table below (expressed as a percentage of each Fund’s respective average daily net assets).
From the unitary management fee, NTI pays most of the expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services (“Covered Expenses”). Covered Expenses do not include the following fees under the Investment Advisory Agreement: interest expenses, brokerage commissions and other trading expenses, fees and expenses of the independent trustees and their independent legal counsel, taxes and other extraordinary
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costs such as litigation and other expenses not incurred in the ordinary course of business.
The unitary management fee rate payable by each Fund is set forth in the following table:
Fund | Unitary Management Fee | |||
FlexShares Morningstar US Market Factor Tilt Index Fund | 0.25 | % | ||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 0.39 | % | ||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 0.59 | % | ||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 0.44 | % | ||
FlexShares Currency Hedged EM Morningstar Factor Tilt Index Fund | 0.64 | % | ||
FlexShares US Quality Large Cap Index Fund | 0.32 | % | ||
FlexShares STOXX® US ESG Impact Index Fund | 0.32 | % | ||
FlexShares STOXX® Global ESG Impact Index Fund | 0.42 | % | ||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 0.46 | % | ||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 0.47 | % | ||
FlexShares Global Quality Real Estate Index Fund | 0.45 | % | ||
FlexShares Real Assets Allocation Index Fund | 0.57 | % | ||
FlexShares Quality Dividend Index Fund | 0.37 | % | ||
FlexShares Quality Dividend Defensive Index Fund | 0.37 | % | ||
FlexShares Quality Dividend Dynamic Index Fund | 0.37 | % | ||
FlexShares International Quality Dividend Index Fund | 0.47 | % | ||
FlexShares International Quality Dividend Defensive Index Fund | 0.47 | % | ||
FlexShares International Quality Dividend Dynamic Index Fund | 0.47 | % |
Fund | Unitary Management Fee | |||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 0.18 | % | ||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 0.18 | % | ||
FlexShares Disciplined Duration MBS Index Fund | 0.20 | % | ||
FlexShares Credit-Scored US Corporate Bond Index Fund | 0.22 | % | ||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 0.22 | % | ||
FlexShares Ready Access Variable Income Fund | 0.25 | % | ||
FlexShares Core Select Bond Fund | 0.35 | % |
The Investment Adviser has contractually agreed until March 1, 2020 in the case of the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund and FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund and March 1, 2019 in the case of the FlexShares Real Assets Allocation Index Fund to waive Management Fees or reimburse certain expenses in an amount equal to the acquired fund fees and expenses (“AFFE”) attributable to each Fund’s investments in their respective Underlying Fund(s). In the case of the FlexShares Core Select Bond Fund, the Investment Adviser has contractually agreed to waive Management Fees or reimburse certain expenses in an amount equal to the sum of (a) any AFFE, if any, incurred by the Fund that are attributable to the Fund’s investment in Acquired Funds managed by NTI or an investment adviser controlling, controlled by, or under common control with NTI (“Affiliated Funds”); and (b) 0.05% or such lesser amount in AFFE incurred by the Fund that are attributable to the Fund’s investment in Acquired Funds that are not Affiliated Funds, until March 1, 2019. After these dates, the Investment Adviser and a Fund may mutually agree to extend the contractual arrangements. The Fund’s Board of Trustees may terminate the contractual arrangements at any time if it determines that it is in the best interest of a Fund and its shareholders. AFFE are expenses incurred indirectly by the Fund through its ownership of shares in other
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Notes to the Financial Statements (cont.)
investment companies. Because AFFE are not direct expenses of the Fund, they are not reflected on the Fund’s financial statements.
The Investment Adviser may voluntarily waive additional management fees. Amounts waived by the Investment Adviser may not be recouped by the Investment Adviser. As of the period ended April 30, 2018, no management fees had been voluntarily waived.
5. Administration Fees
JPMorgan Chase Bank, N.A. (“the Administrator”) serves as administrator of the Funds. The Administrator provides certain administrative services to the Funds. For these services, the Administrator is entitled to certain fees and reasonable out-of-pocket expenses. These fees and expenses are Covered Expenses as defined above.
6. Custodian Fees
JPMorgan Chase Bank, N.A. (the “Custodian”) acts as custodian for the Funds in accordance with a Global Custody Agreement. The Custodian holds cash, securities and other assets of the Funds as required by the 1940 Act. As compensation for the services rendered under the agreement, the Custodian is entitled to fees and reasonable out-of-pocket expenses. These fees and expenses are Covered Expenses as defined above.
7. Trustees Fees
The Trust compensates each Trustee who is not an officer, director or employee of Northern Trust Corporation, or its subsidiaries, for his or her services as a Trustee of the Trust and as a member of Board committees.
NTI has contractually agreed with each Fund to reimburse the fees and expenses of the Trust’s independent trustees and their independent legal counsel paid by each Fund until at least March 1, 2019. After this date, NTI and each Fund may mutually agree to extend the contractual arrangement. The Board of Trustees may terminate the contractual arrangement at any time if it determines that it is in the best interest of the Fund and its shareholders.
The Trust has adopted a deferred compensation plan (“DC Plan”) for its Trustees who are not officers of Northern
Trust or NTI. Under the DC Plan, an Independent Trustee may elect to defer all or a portion of their compensation. The amount deferred is adjusted periodically based upon the performance of the investment options selected by the Trustees. The investment options currently under the DC Plan are the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Quality Dividend Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, and the FlexShares Ready Access Variable Income Fund. Expenses related to the DC Plan are stated on the Statements of Operations.
8. Distribution and Service Plan
Foreside Fund Services, LLC (the “Distributor”) serves as the Funds’ distributor and distributes Creation Units (as defined in Note 9) for each Fund on an agency basis. The Distributor does not receive a fee from the Funds for its distribution services. However, it receives compensation from NTI for its services as distributor pursuant to a separate letter agreement between it and NTI.
The Trust has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. Payments to financial intermediaries under the Plan are tied directly to their own out-of-pocket expenses. As of this date, the Plan has not been implemented with respect to the Funds. The Plan may not be implemented without further Board of Trustees approval. The maximum distribution fee is 0.25% of each Fund’s respective average daily net assets under the Plan. The Funds did not pay any 12b-1 fees during the fiscal year.
9. Issuance and Redemption of Fund Shares
Each Fund issues and redeems shares only to Authorized Participants (typically market makers, large investors and institutions) in exchange for the deposit or delivery of a basket of assets (securities and/or cash), in large blocks known as Creation Units, each of which is comprised of a specified number of shares.
Retail investors may only purchase and sell fund shares on a national securities exchange through a broker-dealer and
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such transactions may be subject to customary commission rates imposed by the broker-dealer.
Authorized Participants may pay transaction fees to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Transaction fees remaining in the Funds were as follows:
Fund | As of April 30, 2018 | As of October 31, 2017 | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 4,500 | $ | 7,500 | ||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 40,000 | 60,000 | ||||||
FlexShares Morningstar Emerging Market Factor Tilt Index Fund | 100,000 | 150,000 | ||||||
FlexShares US Quality Large Cap Index Fund | 2,500 | 500 | ||||||
FlexShares STOXX® US ESG Impact Index Fund | 1,400 | 1,100 | ||||||
FlexShares STOXX® Global ESG Impact Index Fund | 15,000 | 15,000 | ||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 31,500 | 34,500 | ||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 10,000 | 16,000 | ||||||
FlexShares Global Quality Real Estate Index Fund | 2,000 | 4,000 | ||||||
FlexShares Quality Dividend Index Fund | 12,750 | 15,750 | ||||||
FlexShares Quality Dividend Defensive Index Fund | 3,750 | 4,500 | ||||||
FlexShares Quality Dividend Dynamic Index Fund | 2,250 | 3,000 | ||||||
FlexShares International Quality Dividend Index Fund | 25,000 | 70,000 | ||||||
FlexShares International Quality Dividend Defensive Index Fund | 10,000 | 10,000 | ||||||
FlexShares International Quality Dividend Dynamic Index Fund | 5,000 | 10,000 | ||||||
FlexShares Disciplined Duration MBS Index Fund | 2,000 | 1,200 |
Fund | As of April 30, 2018 | As of October 31, 2017 | ||||||
FlexShares Credit-Scored US Corporate Bond Index Fund | $ | 1,000 | $ | 1,500 | ||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 1,000 | 1,000 |
The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund and the FlexShares Core Select Bond Fund do not charge creation unit transaction fees.
10. Investment Transactions
For the period ended April 30, 2018, the FlexShares iBoxx 3-Year Target Duration TIPS Index, FlexShares iBoxx 5-Year Target Duration TIPS Index and FlexShares Disciplined Duration MBS Index Funds invested solely in U.S. Government securities. The cost of securities purchased by each Fund and proceeds from sales of securities, excluding short-term securities, derivatives and in-kind transactions for the period ended April 30, 2018, were as follows:
Fund | Purchases | Sales | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 106,180,577 | $ | 105,293,647 | ||||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 157,823,272 | 138,932,122 | ||||||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 197,023,224 | 92,586,137 | ||||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 385,592 | 1,159,702 | ||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 626,245 | 1,651,877 | ||||||
FlexShares US Quality Large Cap Index Fund | 14,322,107 | 14,193,605 |
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Notes to the Financial Statements (cont.)
Fund | Purchases | Sales | ||||||
FlexShares STOXX® US ESG Impact Index Fund | $ | 6,091,286 | $ | 6,087,792 | ||||
FlexShares STOXX® Global ESG Impact Index Fund | 25,495,043 | 24,252,759 | ||||||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 686,642,178 | 641,768,695 | ||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 51,866,951 | 53,756,807 | ||||||
FlexShares Global Quality Real Estate Index Fund | 80,068,879 | 75,394,607 | ||||||
FlexShares Real Assets Allocation Index Fund | 293,350 | 297,054 | ||||||
FlexShares Quality Dividend Index Fund | 505,019,083 | 507,952,460 | ||||||
FlexShares Quality Dividend Defensive Index Fund | 124,201,955 | 124,310,577 | ||||||
FlexShares Quality Dividend Dynamic Index Fund | 15,930,768 | 16,224,871 | ||||||
FlexShares International Quality Dividend Index Fund | 350,741,682 | 332,472,870 | ||||||
FlexShares International Quality Dividend Defensive Index Fund | 33,248,004 | 34,003,313 | ||||||
FlexShares International Quality Dividend Dynamic Index Fund | 28,783,260 | 29,246,604 | ||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 1,377,603,982 | 1,395,168,812 | ||||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 444,877,225 | 454,004,181 | ||||||
FlexShares Disciplined Duration MBS Index Fund | 22,959,709 | 12,165,013 |
Fund | Purchases | Sales | ||||||
FlexShares Credit-Scored US Corporate Bond Index Fund | $ | 28,335,662 | $ | 18,483,805 | ||||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 15,919,216 | 8,151,454 | ||||||
FlexShares Ready Access Variable Income Fund* | 59,492,940 | 73,393,131 | ||||||
FlexShares Core Select Bond Fund** | 6,069,422 | 6,053,228 |
* | Include $1,000,310 in purchases and $3,628,257 in sales in U.S. Government Securities. |
** | Include $559,617 in purchases and $558,399 in sales in U.S. Government Securities. |
11. In-Kind Transactions
During the period ended April 30, 2018, certain Funds received securities in exchange for subscriptions of shares (subscriptions-in-kind). For the period ended April 30, 2018, the fair value of the securities received for subscriptions for each Fund was as follows:
Fund | Fair Value | |||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 38,362,154 | ||
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund | 85,865,556 | |||
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund | 19,724,001 | |||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 1,415,731 | |||
FlexShares US Quality Large Cap Index Fund | 14,057,469 | |||
FlexShares STOXX® US ESG Impact Index Fund | 9,244,275 | |||
FlexShares STOXX® Global ESG Impact Index Fund | 31,729,621 | |||
FlexShares Morningstar Global Upstream Natural Resources Index Fund | 435,241,423 | |||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 22,200,418 | |||
FlexShares Global Quality Real Estate Index Fund | 21,882,293 | |||
FlexShares Real Assets Allocation Index Fund | 5,639,451 |
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Notes to the Financial Statements (cont.)
Fund | Fair Value | |||
FlexShares Quality Dividend Index Fund | $ | 51,954,789 | ||
FlexShares Quality Dividend Defensive Index Fund | 2,177,172 | |||
FlexShares Quality Dividend Dynamic Index Fund | 2,071,376 | |||
FlexShares International Quality Dividend Index Fund | 80,841,047 | |||
FlexShares International Quality Dividend Defensive Index Fund | 5,713,590 | |||
FlexShares International Quality Dividend Dynamic Index Fund | 4,176,954 | |||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 157,152,742 | |||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 133,648,207 | |||
FlexShares Credit-Scored US Long Corporate Bond Index Fund | 2,427,079 | |||
FlexShares Core Select Bond Fund | 19,636,952 |
During the period ended April 30, 2018, certain Funds delivered securities in exchange for redemption of shares (redemptions-in-kind). For financial reporting purposes, the Funds recorded net realized gains and losses in connection with each transaction. For the period ended April 30, 2018, the fair value and realized gain (losses) of the securities transferred for redemptions for each Fund was as follows:
Fund | Fair Value | Net Realized Gains(Losses) | ||||||
FlexShares Morningstar US Market Factor Tilt Index Fund | $ | 16,359,960 | $ | 5,756,093 | ||||
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund | 10,633,407 | 1,810,262 | ||||||
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund | 6,182,497 | 2,296,681 | ||||||
FlexShares STOXX® Global Broad Infrastructure Index Fund | 27,616,556 | 7,174,378 | ||||||
FlexShares Quality Dividend Index Fund | 83,325,629 | 22,626,396 |
Fund | Fair Value | Net Realized Gains(Losses) | ||||||
FlexShares Quality Dividend Defensive Index Fund | $ | 21,553,113 | $ | 5,405,471 | ||||
FlexShares Quality Dividend Dynamic Index Fund | 15,162,754 | 3,230,246 | ||||||
FlexShares International Quality Dividend Dynamic Index Fund | 8,873,842 | 1,432,093 | ||||||
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 108,145,689 | (150,735 | ) | |||||
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 18,476,965 | 7,663 | ||||||
FlexShares Ready Access Variable Income Fund | 27,415,349 | 14,074 | ||||||
FlexShares Core Select Bond Fund | 612,945 | 454 |
12. Guarantees and Indemnifications
In the normal course of business each Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that provide general indemnifications. Additionally, under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. The Funds’ maximum exposure under these arrangements is unknown, as it involves possible future claims that may or may not be made against the Funds.
13. Investment Company Modernization
On October 13, 2016, the U.S. Securities and Exchange Commission adopted new rules and forms, and amended existing rules and forms, to modernize the reporting of information provided by funds and to improve the quality and type of information that funds provide to the SEC and investors. In part, the new and amended rules and forms amend Regulation S-X and require standardized, enhanced disclosure about derivatives in a Fund’s financial statements, as well as other amendments. The Funds have updated disclosure in these financial statements to reflect the amendments, which
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Notes to the Financial Statements (cont.)
were effective August 1, 2017. The compliance date for the new form types and other rule amendments is on or after June 1, 2018. The adoption had no effect on the Funds’ net assets or results of operations.
14. Subsequent Events
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no recognized or non-recognized subsequent events relevant for financial statement disclosure.
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As a shareholder, you incur two types of costs: (1) transaction costs for purchasing and selling shares and (2) ongoing costs, including advisory and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses
The actual expense examples are based on an investment of $1,000 invested at the beginning of a six month period and held through the period ended April 30, 2018.
The first line under each Fund in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The hypothetical expense examples are based on an investment of $1,000 invested at the beginning of a six month period and held through the period ended April 30, 2018.
The second line under each Fund in the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as brokerage commissions on purchases or sales of Fund shares. Therefore, the second line for each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning Account Value | Ending Account Value 04/30/18 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Morningstar US Market Factor Tilt Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,031.60 | $ | 1.26 | 0.25 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.55 | $ | 1.25 | 0.25 | % | ||||||||
FlexShares® Morningstar Developed Markets ex-US Factor Tilt Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,033.90 | $ | 1.97 | 0.39 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.86 | $ | 1.96 | 0.39 | % | ||||||||
FlexShares® Morningstar Emerging Markets Factor Tilt Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,052.60 | $ | 3.00 | 0.59 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.87 | $ | 2.96 | 0.59 | % |
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Fund Expenses (cont.)
Beginning Account Value | Ending Account Value 04/30/18 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund(a) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,005.70 | $ | 0.25 | 0.05 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.55 | $ | 0.25 | 0.05 | % | ||||||||
FlexShares® Currency Hedged Morningstar EM Factor Tilt Index Fund(a) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,023.90 | $ | 0.25 | 0.05 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.55 | $ | 0.25 | 0.05 | % | ||||||||
FlexShares® US Quality Large Cap Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,059.80 | $ | 1.63 | 0.32 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.21 | $ | 1.61 | 0.32 | % | ||||||||
FlexShares® STOXX® US ESG Impact Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,045.30 | $ | 1.62 | 0.32 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.21 | $ | 1.61 | 0.32 | % | ||||||||
FlexShares® STOXX® Global ESG Impact Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,032.00 | $ | 2.12 | 0.42 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.71 | $ | 2.11 | 0.42 | % | ||||||||
FlexShares® Morningstar Global Upstream Natural Resources Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,083.80 | $ | 2.38 | 0.46 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.51 | $ | 2.31 | 0.46 | % | ||||||||
FlexShares® STOXX® Global Broad Infrastructure Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 987.30 | $ | 2.32 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® Global Quality Real Estate Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,009.10 | $ | 2.24 | 0.45 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.56 | $ | 2.26 | 0.45 | % | ||||||||
FlexShares® Real Assets Allocation Index Fund(a) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.90 | $ | 0.55 | 0.11 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.25 | $ | 0.55 | 0.11 | % | ||||||||
FlexShares® Quality Dividend Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,050.20 | $ | 1.88 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % | ||||||||
FlexShares® Quality Dividend Defensive Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,045.40 | $ | 1.88 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % |
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Fund Expenses (cont.)
Beginning Account Value | Ending Account Value 04/30/18 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Quality Dividend Dynamic Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,040.40 | $ | 1.87 | 0.37 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.96 | $ | 1.86 | 0.37 | % | ||||||||
FlexShares® International Quality Dividend Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,019.80 | $ | 2.35 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® International Quality Dividend Defensive Index Fund | �� | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,017.90 | $ | 2.35 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® International Quality Dividend Dynamic Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,030.40 | $ | 2.37 | 0.47 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,022.46 | $ | 2.36 | 0.47 | % | ||||||||
FlexShares® iBoxx 3-Year Target Duration TIPS Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 997.90 | $ | 0.89 | 0.18 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.90 | $ | 0.90 | 0.18 | % | ||||||||
FlexShares® iBoxx 5-Year Target Duration TIPS Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 995.00 | $ | 0.89 | 0.18 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.90 | $ | 0.90 | 0.18 | % | ||||||||
FlexShares® Disciplined Duration MBS Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 987.20 | $ | 0.99 | 0.20 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.80 | $ | 1.00 | 0.20 | % | ||||||||
FlexShares® Credit-Scored US Corporate Bond Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 974.50 | $ | 1.08 | 0.22 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.70 | $ | 1.10 | 0.22 | % | ||||||||
FlexShares® Credit-Scored US Long Corporate Bond Index Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 958.90 | $ | 1.07 | 0.22 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.70 | $ | 1.10 | 0.22 | % | ||||||||
FlexShares® Ready Access Variable Income Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,005.60 | $ | 1.24 | 0.25 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.55 | $ | 1.25 | 0.25 | % |
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Fund Expenses (cont.)
Beginning Account Value | Ending Account Value 04/30/18 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | |||||||||||||
FlexShares® Core Select Bond Fund(a) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 979.60 | $ | 0.79 | 0.16 | % | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.00 | $ | 0.80 | 0.16 | % |
* | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
(a) | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the Underlying Fund(s) in which the Fund invests. |
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Supplemental Information (Unaudited)
Principal Risks
As with any investment, you could lose all or part of your investment in a Fund, and the Fund’s performance could trail that of other investments. In addition to the discussion of the risks of certain of the Funds’ investments included in Note 2, some of the principal risks of investment in the Funds are summarized below. A more complete description of principal risks is included in each Fund’s Prospectus.
The following risks apply to all of the Funds:
Cyber Security and Operational Risk is the risk that the Fund and its service providers may experience disruptions that arise from breaches in cyber security, human error, processing and communications errors, counterparty or third-party errors, technology or systems failures, any of which may have an adverse impact on the Fund. Failures or breaches of the electronic systems of the Fund, the Fund’s adviser, distributor, and other service providers, market makers, Authorized Participants or the issuers of securities in which the Fund invests have the ability to cause disruptions and negatively impact the Fund’s business operations, potentially resulting in financial losses to the Fund and its shareholders.
Derivatives Risk
Changes in the value of a derivative instrument may not correlate perfectly with the underlying asset, rate or index, and the Funds could lose more than the principal amount invested.
Market Trading Risk
Each Fund’s shares are listed on a securities exchange, which presents risks including the potential lack of an active market for Fund shares, losses from trading in secondary markets, and disruption in the creation/redemption process of the Funds. Any of these factors may lead to the Funds’ shares trading at a premium or discount to NAV.
Valuation Risk
The sale price the Funds could receive for a security may differ from the Funds’ valuation of the security, particularly for securities that trade in low volume or volatile markets, or that are valued using a fair value methodology.
The following risk applies only to the Index Funds:
Tracking Error Risk
Tracking error risk is the risk that an Index Fund’s performance may vary substantially from the performance of the Underlying Index it tracks as a result of imperfect correlation between a Fund’s securities and those of the Underlying Index. Imperfect correlation may result from share purchases and redemptions, expenses, changes in the Underlying Indexes, asset valuations, foreign currency valuations, market impact, corporate actions (such as mergers and spinoffs), legal restrictions (such as tax-related diversification requirements that apply to the Funds but not to the Underlying Index) and timing variances, among other factors.
Calculation Methodology Risk
Each of the Index Funds is subject to Calculation Methodology Risk. This is the risk that the Underlying Index’s calculation methodology or sources of information may not provide an accurate assessment of included issuers or correct valuation of securities, nor is the availability or timeliness of the production of the Index guaranteed.
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Supplemental Information (cont.)
The following risks apply to each Fund as disclosed:
Concentration Risk
Each of the Funds, except the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, is subject to Concentration Risk. To the extent that the investments of these Funds are concentrated in the securities of issuers in a particular region, country, market, industry, sector or asset class, the Funds may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that region, country, market, industry, sector or asset class.
Interest Rate/Maturity Risk
The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares Ready Access Variable Income Fund, and the FlexShares Core Select Bond Fund are subject to the risk that the value of the Funds’ fixed-income assets will decline because of rising interest rates. The magnitude of this decline will often be greater for longer-term fixed income securities than shorter-term fixed-income securities. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates.
MLP Risk
The FlexShares STOXX® Global Broad Infrastructure Index Fund and the FlexShares Real Assets Allocation Index Fund (including through its investment in its Underlying Fund(s)) may invest in Master Limited Partnerships (MLPs). The Fund may not invest more than 25% of its net assets in MLPs. MLP Risk is the risk that accompanies an investment in MLP units. Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. MLPs that concentrate in a particular industry or a particular geographic region are subject to risks associated with such industry or region. The benefit derived from the Fund’s investment in MLPs is largely dependent on the MLPs being treated as partnerships for federal income tax purposes. If any of the MLPs owned by the Fund were treated as corporations for U.S. federal income tax purposes, the after-tax return to the Fund with respect to its investment in such MLPs would be materially reduced, which could cause a decline in the value of the Fund’s shares. The Fund must include its allocable share of the MLP’s taxable income in its taxable income, whether or not it receives a distribution of cash from the MLP. In such case, the Fund may have to liquidate securities to make required distributions to the Fund’s shareholders.
Non-diversification Risk
The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares Real Assets Allocation Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, and the FlexShares Ready Access Variable Income Fund (each a “Fund” and collectively the “Funds”) are non-diversified series of the Trust, pursuant to the 1940 Act. Fund performance may depend on the performance of a small number of issuers because the Funds may invest a large percentage of its assets in securities issued by or representing a small number of issuers.
Large Cap Risk
The FlexShares US Quality Large Cap Index Fund, FlexShares STOXX® US ESG Impact Index Fund, FlexShares STOXX® Global ESG Impact Index Fund, FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares
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Supplemental Information (cont.)
Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund are subject to the risk that returns on investments in stocks of large U.S. companies could trail the returns on investments in stocks of smaller and mid-sized companies.
Mid Cap Stock Risk
The FlexShares STOXX® US ESG Impact Index Fund and the FlexShares STOXX® Global ESG Impact Index Fund may invest in stocks of mid-sized companies which may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. Mid-sized companies may have limited product lines or financial resources, and may be dependent upon a particular niche of the market.
Mid and Small Cap Stock Risk
The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund (including through its investment in its Underlying Fund), FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund (including through its investment in its Underlying Fund), FlexShares Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, and the FlexShares Real Assets Allocation Index Fund (including through its investment in its Underlying Fund(s)) may invest in stocks of smaller companies which may be more volatile than stocks of larger, more established companies. Small companies may have limited product lines or financial resources, or may be dependent upon a small or inexperienced management group, and their securities may trade less frequently and in lower volume than the securities of larger companies, which could lead to higher transaction costs. Generally the smaller the company size, the greater the risk.
Value Investing Risk
The FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares US Quality Large Cap Index Fund, FlexShares Global Quality Real Estate Index Fund, and the FlexShares Real Assets Allocation Index Fund’s (including through its investment in its Underlying Fund(s)) investment in companies whose securities are believed to be undervalued, relative to their underlying profitability, may not appreciate in value as anticipated.
ESG Investment Risk
The FlexShares STOXX® US ESG Impact Index Fund and the FlexShares STOXX® Global ESG Impact Index Fund are subject to the risk that because the methodology of the Underlying Index selects and assigns weights to securities of issuers for nonfinancial reasons, the Fund may underperform the broader equity market or other funds that do not utilize ESG criteria when selecting investments.
Global Natural Resources Industry Risk
The FlexShares Morningstar Global Upstream Natural Resources Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund) is subject to the risks associated with investment in the global natural resources sector in addition to the general risk of the stock market. The natural resources sector can significantly be affected by events relating to U.S. and foreign political and economic developments and environmental and other government regulations, as well as other factors including, but not limited to: commodity price volatility, technological developments and natural or man-made disasters.
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Declines in the demand for, or prices of, natural resources generally would be expected to contribute to declines in the value of the Fund’s equity securities. Such declines may occur quickly and without warning and may negatively impact the value of the Fund and your investment.
Hedging Risk
The FlexShares Core Select Bond Fund is subject to the risk that the Fund’s short positions in U.S. Treasury futures and transactions in interest rate swaps will not completely eliminate interest rate risk of long positions in bonds. In certain falling interest rate environments, the Fund’s hedging strategy could result in disproportionately larger losses in the short U.S. Treasury futures and interest rate swaps positions as compared to gains in the long bond positions attributable to interest rate changes.
Corporate Bond Risk
The FlexShares Credit-Scored US Corporate Bond Index Fund and the FlexShares Credit-Scored US Long Corporate Bond Index Fund invest primarily in bonds issued by corporations. Corporate debt securities are subject to the risk of the issuer’s inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. When interest rates rise, the value of corporate debt can be expected to decline. Debt securities with longer maturities tend to be more sensitive to interest rate movements than those with shorter maturities.
Interest Rate Risk
The FlexShares STOXX® Global Broad Infrastructure Index Fund and the FlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund) are subject to the risk that rising interest rates may adversely affect the Fund. Increases in interest rates typically lower the present value of a REIT’s future earnings stream, and may make financing property purchases and improvements more costly. Because the market price of REIT stocks may change based upon investors’ collective perceptions of future earnings, the value of the Fund may decline when investors anticipate or experience rising interest rates.
The following risks apply only to the FlexShares Quality Dividend Index Fund, FlexShares Quality Dividend Defensive Index Fund, FlexShares Quality Dividend Dynamic Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic Index Fund:
Dividend Risk
The Fund is subject to the risk that an issuer of stock held by the Fund may choose not to declare a dividend or the dividend rate might not remain at current levels. Dividend paying stocks might not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. The Fund’s performance during a broad market advance could suffer because dividend paying stocks may not experience the same capital appreciation as non-dividend paying stocks.
Volatility Risk
The Fund is subject to the risk that the actual level of volatility experienced by the Fund may be greater or lower than the targeted overall volatility of the Underlying Index. Although the Underlying Index is designed to have a targeted overall volatility, there is no guarantee that it will have the targeted overall volatility. The Fund will continue to seek to track the Underlying Index even if the Underlying Index does not have the targeted overall volatility. There is also the risk that the Fund may experience volatility greater or lower than that of the Underlying Index as a result of tracking error. A portfolio of securities with greater volatility is generally considered to have a higher risk profile than a portfolio with lower volatility.
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The following risks apply to the FlexShares Global Quality Real Estate Index Fund (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund):
Real Estate Securities Risk
The Fund is subject to the risks associated with investment in the real estate sector in addition to the general risk of the stock market. Investing in securities of real estate companies will make the Fund more susceptible to risks associated with the ownership of real estate and with the real estate industry in general, as well as risks that relate specifically to the way in which real estate companies are organized and operated. Real estate companies may have lower trading volumes and may be subject to more abrupt or erratic price movements than the overall securities markets. The value of real estate securities may underperform other sectors of the economy or broader equity markets. To the extent that the Fund concentrates its investments in the real estate sector, it may be subject to greater risk of loss than if it were diversified across different industry sectors.
Real Estate Investment Trust (REIT) Risk
The Fund is subject to the risk that the Fund’s investments will be affected by factors affecting REITs and the real estate sector generally. Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs whose underlying properties are concentrated in a particular industry or geographic region are also subject to risks affecting such industries and regions. By investing in REITs through the Fund, a shareholder will bear expenses of the REITs in addition to expenses of the Fund.
The following risk applies only to the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares Real Assets Allocation Index Fund, and the FlexShares Core Select Bond Fund:
Fund of Funds Risk
The Fund is subject to the risk that the Fund’s investment performance largely depends on the investment performance of the Underlying Fund(s) in which it primarily invests. The Fund’s NAV will change with changes in the value of the Underlying Fund(s) and other securities in which the Fund invests based on their market valuations.
An investment in the Fund will entail more costs and expenses than direct investments in the Underlying Fund(s). The Fund will indirectly pay a proportional share of the expenses of the Underlying Fund(s) in which it invests (including operating expenses and management fees), in addition to the fees and expenses it pays directly. As the Fund’s allocation to an Underlying Fund changes from time to time, or to the extent that the expense ratio of an Underlying Fund changes, the weighted average operating expenses borne by the Fund may increase or decrease.
The following risk applies only to the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund and the FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund:
Currency Hedging Risk
The Fund is subject to the risk that the Fund’s hedging transactions will not be effective. The Fund enters into foreign currency forward contracts designed to offset the Fund’s currency exposure of non-U.S. dollar denominated securities included in the Underlying Index against the U.S. dollar. These contracts may not be successful. To the extent the Fund’s foreign currency contracts are not successful, the U.S. dollar value of your investment in the Fund may go down. Because the Fund’s currency hedge is reset on a monthly basis, currency risk can develop or increase intra-month. Furthermore, while the Fund is
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designed to hedge against currency fluctuations, it is possible that a degree of currency exposure may remain even at the time a hedging transaction is implemented. Currency exchange rates can be very volatile and can change quickly and unpredictably. Therefore, the value of an investment in the Fund may also go up or down quickly and unpredictably and investors may lose money. In addition, a Fund’s currency hedging activities may involve frequent trading of currency instruments, which may increase transaction costs and cause the Fund’s return to deviate from the Underlying Index.
In seeking to track the performance of the Underlying Index, the Fund will attempt to hedge the currency exposure of non-U.S. dollar denominated securities held in its portfolio by investing in foreign currency forward contracts, which may include non-deliverable foreign currency forward contracts (“NDFs”). NDFs on currencies are often less liquid than deliverable forward currency contracts. A lack of liquidity in NDFs of the hedged currency could result in the Fund being unable to structure its hedging transactions as intended. In addition, NTI may seek to limit the size of the Fund in order to attempt to reduce a situation where the Fund is unable to obtain sufficient liquidity in an underlying currency to implement its investment objective.
The following risks apply to the FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund, FlexShares Ready Access Variable Income Fund, and the FlexShares Core Select Bond Fund:
Credit (or Default) Risk
The Fund is subject to the risk that the inability or unwillingness of an issuer or guarantor of a fixed-income security, or a counterparty to a TBA, repurchase or other transaction, to meet its payment or other financial obligations will adversely affect the value of the Fund’s investments and its returns. Changes in the credit rating of a debt security held by the Fund could have a similar effect.
Debt Extension Risk
The Fund is subject to the risk that an issuer will exercise its right to pay principal on an obligation held by the Fund (such as a mortgage-backed security) later than expected. This may happen during a period of rising interest rates. Under these circumstances, the value of the obligation will decrease and the Fund will suffer from the inability to invest in higher yielding securities.
Liquidity Risk
The Fund is subject to the risk that certain portfolio securities may be less liquid than others, which may make them difficult or impossible to sell at the time and the price that the Fund would like, adversely affecting the value of the Fund’s investments and its returns.
Prepayment (or Call) Risk
The Fund is subject to the risk that prepayment of the underlying mortgages or other collateral of some fixed-income securities may result in a decreased rate of return and a decline in value of those securities.
The following risks apply to the FlexShares Disciplined Duration MBS Index Fund, FlexShares Ready Access Variable Income Fund and the FlexShares Core Select Bond Fund:
U.S. Government Securities Risk
The Fund is subject to the risk that the U.S. government will not provide financial support to its agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law. Many U.S. government securities that may be purchased by the
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Fund are not backed by the full faith and credit of the United States. It is possible that the issuers of such securities will not have the funds to meet their payment obligations in the future.
Mortgage Related and Other Asset-Backed Risks
The FlexShares Disciplined Duration MBS Index Fund is subject to the risks of investing in mortgage-related and other asset-backed securities, including Interest Rate/Maturity Risk, Debt Extension Risk and Prepayment (or Call) Risk.
The following risk applies to the FlexShares Disciplined Duration MBS Index Fund and the FlexShares Core Select Bond Fund:
Mortgage Backed Pass-Through Securities Risk
The Fund is subject to the risk of investing in mortgage-backed securities issued by a U.S. Agency. These securities may not be backed by the full faith and credit of the U.S. government. Mortgage-backed securities are subject to Credit (or Default) Risk, Interest Rate/ Maturity Risk, Debt Extension Risk and Prepayment (or Call) Risk. Because of these risks, mortgage-backed securities react differently to changes in interest rates than other bonds. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities.
The following risk applies to the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund, FlexShares Morningstar Emerging Markets Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, Fund FlexShares Credit-Scored US Corporate Bond Index Fund, FlexShares Credit-Scored US Long Corporate Bond Index Fund FlexShares Ready Access Variable Income Fund, and the FlexShares Core Select Bond Fund:
Financial Sector Risk
The Fund is subject to the risk that the Fund will be impacted by events affecting the U.S. and/or non-U.S. financial sectors if it invests a relatively large percentage of its assets in those sectors, adversely affecting the Fund’s performance. The U.S. and non-U.S. financial sectors can be significantly affected by changes in interest rates, government regulation, the rate of corporate and consumer debt defaulted, price competitions and the availability and cost of capital funds. In 2008 and 2009, the U.S. financial sector was significantly impacted by bankruptcies and consolidations of major financial firms. Events affecting the U.S. and non-U.S. financial sectors have had, and may continue to have, a significant negative impact on the valuations and stock prices of companies in this sector and have increased the volatility of investments in those sectors.
The following risk applies to the FlexShares Quality Dividend Index Fund, the FlexShares Quality Dividend Defensive Index Fund, the FlexShares Quality Dividend Dynamic Index Fund, the FlexShares STOXX US ESG Impact Index Fund and the FlexShares US Quality Large Cap Index Fund:
Information Technology Sector Risk
The Fund is subject to the risk that the Fund will be impacted by events affecting the U.S. information technology sector if it invests a relatively large percentage of its assets in that sector, adversely affecting the Fund’s price.
Premium/Discount Information
Information about the differences between the daily market prices on secondary markets for shares of the Funds and the Funds’ net asset values for various time periods, as applicable, is available by visiting the Funds’ website at www.flexshares.com.
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For More Information (Unaudited)
Portfolio Holdings
FlexShares® Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
Proxy Voting
FlexShares® Trust Proxy Voting Policies and Procedures are available upon request and without charge by calling 1-855-FLEXETF (1-855-353-9383) or by visiting the Funds’ Web site www.flexshares.com or the SEC’s Web site at sec.gov. Each Fund’s portfolio securities voting record for the 12-month period ended June 30 is available upon request and without charge by calling 1-855-FLEXETF (1-855-353-9383) or by visiting the SEC’s Web site at sec.gov.
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FlexShares® Trust
50 S. LaSalle Street
Chicago, IL 60603
800.595.9111
www.flexshares.com
FlexShares® is a registered trademark of NTI. Morningstar® is a registered trademark of Morningstar, Inc. (“Morningstar”). Morningstar® US Market Factor Tilt IndexSM, Morningstar® Developed Markets ex-US Factor Tilt IndexSM, Morningstar® Emerging Markets Factor Tilt IndexSM, Morningstar® Developed Markets ex-US Factor Tilt Hedged IndexSM, Morningstar® Emerging Markets Factor Tilt Hedged IndexSM and Morningstar® Global Upstream Natural Resources IndexSM are service marks of Morningstar, Inc. STOXX and its licensors (the “Licensors”) have no relationship to FlexShares® Trust other than the licensing of the STOXX® USA ESG Impact Index, STOXX® Global ESG Impact Index and STOXX® Global Broad Infrastructure Index and the related trademarks for use in connection with the FlexShares® STOXX® US ESG Impact Index Fund, FlexShares® STOXX® Global ESG Impact Index Fund and FlexShares® STOXX® Global Broad Infrastructure Index Fund, respectively. The iBoxx 3-Year Target Duration TIPS Index and iBoxx 5-Year Target Duration TIPS Index are each the property of Markit North America, Inc. (“Markit”) and have been licensed for use in connection the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund and the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, respectively. Northern Trust Quality Large Cap IndexSM, Northern Trust Quality Dividend IndexSM, Northern Trust Quality Dividend Dynamic IndexSM, Northern Trust Quality Dividend Defensive IndexSM, Northern Trust International Quality Dividend IndexSM, Northern Trust Quality Dividend Dynamic IndexSM, Northern Trust International Quality Dividend Defensive IndexSM, Northern Trust Global Quality Real Estate IndexSM, and Northern Trust Credit-Scored US Corporate Bond IndexSM, Northern Trust Credit-Scored US Long Corporate Bond IndexSM, Northern Trust Real Assets Allocation IndexSM are service marks of NTI and have been licensed for use by FlexShares Trust. The ICE® BofAML® Constrained Duration US Mortgage Backed Securities IndexSM are trademarks of ICE Data Indices, LLC or its affiliates (“ICE”) and have been licensed for use by NTI.
FS00139-0618
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Item 2. Code Of Ethics.
Not applicable for this reporting period.
Item 3. Audit Committee Financial Expert.
Not applicable for this reporting period.
Item 4. Principal Accountant Fees and Services.
Not applicable for this reporting period.
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Item 5. Audit Committee of Listed Registrants.
Not applicable for this reporting period.
Item 6. Investments.
(a) | Schedule I – Investments in Securities of Unaffiliated Issuers |
The complete schedule of investments is included in the report to shareholders in Item 1 of this Form N-CSR.
(b) | Securities Divested of in accordance with Section 13(c) of the Investment Company Act of 1940. |
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) | The Registrant’s principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Not applicable for this reporting period. | |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. | |
(b) | Certifications required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FlexShares Trust
By: | /s/ Peter K. Ewing | |
Peter K. Ewing | ||
President | ||
July 6, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Peter K. Ewing | |
Peter K. Ewing | ||
President | ||
July 6, 2018 |
By: | /s/ Randal Rein | |
Randal Rein | ||
Treasurer and Principal Financial Officer | ||
July 6, 2018 |